Document:

EX-10.1

Exhibit 10.1

VIASPACE INC.

2006 NON-EMPLOYEE DIRECTOR OPTION PROGRAM

ARTICLE I

ESTABLISHMENT AND PURPOSE OF THE PROGRAM

1.01 Establishment of Program

The VIASPACE Inc. 2006 Non-Employee Director Option Program (the “Program”) is replacing the
VIASPACE Inc. 2005 Non-Employee Director Option Program adopted pursuant to the VIASPACE Inc. 2005
Stock Incentive Plan (the “Plan”) that was effective October 20, 2005 and, in addition to the terms
and conditions set forth below, is subject to the provisions of the Plan.

1.02 Purpose of Program

The purpose of the Program is to enhance the ability of the Company to attract and retain directors
who are not Employees (“Non-Employee Directors”) through a program of automatic Option grants.
Non-Employee Directors may also be granted other awards, as referred to in the Plan, by the Board
of Directors (the “Board”) in its discretion as Administrator of the Plan.

1.03 Effective Date of the Program

The Program is effective as of February 13, 2006 (the “Effective Date”).

ARTICLE II

DEFINITIONS

Capitalized terms in this Program, unless otherwise defined herein, have the meaning given to them
in the Plan.

ARTICLE III

OPTION TERMS

3.01 Date of Grant and Number of Shares

A Non-Qualified Stock Option to purchase 125,000 shares of Common Stock (or such other number of
shares determined by the Board in its discretion as Administrator of the Plan) shall be granted
(the “Initial Grant”) to each Non-Employee Director upon the date that each such Non-Employee
Director is elected or appointed to the Board (or such other date as determined by the Board in its
discretion as Administrator of the Plan).

In addition, on the first business day of each fiscal year, commencing with the fiscal year
beginning January 1, 2007, each Non-Employee Director who continues as a Non-Employee Director
following such annual meeting shall be granted a Non-Qualified Stock Option to purchase 50,000
shares of Common Stock (or such other number of shares determined by the Board in its discretion as
Administrator of the Plan) (a “Subsequent Grant”); provided that no Subsequent Grant shall be made
to any Non-Employee Director who has not served as a director of the Company, as of the time of
such annual meeting, for at least six (6) months. Each such Subsequent Grant shall be made on the
date of the annual stockholders’ meeting in question.

Further, the Board in its discretion as Administrator of the Plan may make additional grants of
Non-Qualified Stock Options to Non-Employee Directors at any time.

3.02 Vesting

Unless otherwise specified by the Board with regard to a specific grant, each Option under the
Program shall normally vest and become exercisable as to one-quarter (1/4) of the shares of Common
Stock subject to the Option at the end of the first full fiscal quarter for which the Non-Employee
Director served as a director of the Company and an additional one-quarter (1/4) of the shares of
Common Stock subject to the Option shall vest at the end of each subsequent full fiscal quarter for
which the Non-Employee Director served as a director of the Company thereafter, such that the
Option will be fully exercisable four full fiscal quarters after its date of grant.

3.03 Exercise Price

The exercise price per share of Common Stock of each Initial Grant and Subsequent Grant shall be
one hundred percent (100%) of the Fair Market Value per Share on the date of grant.

3.04 Corporate Transaction/Change in Control

(a) In the event of a Corporate Transaction, each Option which is at the time outstanding under the
Program automatically shall become fully vested and exercisable immediately prior to the effective
date of such Corporate Transaction. Effective upon the consummation of the Corporate Transaction,
all outstanding Options under the Program shall terminate. However, all such Options shall not
terminate if the Options are, in connection with the Corporate Transaction, assumed by the
successor corporation or Parent thereof.

(b) In the event of a Change in Control (other than a Change in Control which also is a Corporate
Transaction), each Option which is at the time outstanding under the Program automatically shall
become fully vested and exercisable, immediately prior to the specified effective date of such
Change in Control. Each such Option shall remain so exercisable until the expiration or sooner
termination of the applicable Option term.

3.05 Other Terms

The Administrator shall determine the remaining terms and conditions of the Options awarded under
the Program.EX-10.2

Exhibit 10.2

2006 COMPENSATION PACKAGE FOR OUTSIDE MEMBERS OF

THE BOARD OF DIRECTORS OF

VIASPACE INC.

Following is the compensation package for the Outside Members of the Board of Directors of VIASPACE
Inc. (the “Company”):

	 	 	 	 	 	 	 
	
 
	 	A)
	 	New members
	 	

	 
	 	 	 	 	 	 
	
 
	 	 	 	a.
	 	Option grant: One-time option grant of 125,000 options (or such other

number of shares determined by the Board of Directors in its discretion

as Administrator), on the date of appointment (or such other date as

determined by the Board of Directors in its discretion as

Administrator), at the closing market price on the day of grant, vesting

quarterly for each full fiscal quarter for which the Board member holds

office (or such other vesting period as determined by the Board of

Directors in its discretion as Administrator).
	 
	 	 	 	 	 	 
	
 
	 	 	 	b.
	 	Cash Compensation: $2,500 payable upon election to the Board of Directors
	 
	 	 	 	 	 	 
	 	 	B)	 	Current board members – Current outside members of the Company’s Board of Directors earn the

	 
	 	 	 	 	 	 
	 	 	 	 	following compensation:

	 
	 	 	 	 	 	 
	
 
	 	 	 	a.
	 	Cash compensation: $2,500 per quarter payable at the on the first

business day following the end of each full fiscal quarter for which the

member served on the board. Additionally, outside Board members will

receive cash compensation of $1,000 for every meeting attended in person

and $500 for every meeting attended telephonically.
	 
	 	 	 	 	 	 
	
 
	 	 	 	b.
	 	Option grants: For outside Board members that have served on the Board

for at least 6 months, 50,000 options (or such other number of shares

determined by the Board of Directors in its discretion as Administrator)

on the first business day of each fiscal year, at closing market price

on the day of grant, vesting ratably over four quarters (or such other

vesting period as determined by the Board of Directors in its discretion

as Administrator).
	 
	 	 	 	 	 	 
	 	 	C)	 	Current committee members – In addition to compensation earned under “b” above, members of

	 
	 	 	 	 	 	 
	 	 	 	 	Committees of the Company’s Board of Directors will receive compensation of $250 for every

	 
	 	 	 	 	 	 
	 	 	 	 	committee meeting attended whether in person or telephonically.

	 
	 	 	 	 	 	 
	 	 	D)	 	Should any grant of Stock Options to outside members of the Board of Directors occur on a day

	 
	 	 	 	 	 	 
	 	 	 	 	when the stock market is closed, then the option price shall be the previous day’s closing

	 
	 	 	 	 	 	 
	
 
	 	 	 	market price.
	 	

	 
	 	 	 	 	 	 
	 	 	E)	 	Should a change in control of the company occur all stock option will vest immediately. Change

	 
	 	 	 	 	 	 
	 	 	 	 	of control is defined as a change in at least 50% ownership of the stock within a 60 day

	 
	 	 	 	 	 	 
	
 
	 	 	 	period.Exhibit 10.1 PSA for 1229-1231 25th St

    

      1229
        - 1231 25th
        Street, N.W.

      Washington,
        D.C.

      

      

      AGREEMENT
        OF PURCHASE AND SALE

      

      

       

      THIS
        AGREEMENT OF PURCHASE AND SALE
        (“Agreement”) is made as of February 13, 2006 (“Contract Date”), between (i) BNA
        Washington Inc., a Delaware corporation (“Seller”), and (ii) CESC 1229-1231 TRS
        Inc., a Delaware corporation (“Purchaser”).

       

      ARTICLE
        1. INTERPRETATION

       

      1.1  Definitions.
        For
        purposes of this Agreement, the following capitalized terms shall have the
        meanings indicated:

       

      1.1.1  Access
        Agreement:
        the
        Access Agreement executed by Purchaser in connection with the
        Property.

       

      1.1.2  Accounting
        Firm:
        as
        defined in Section 10.10.

       

      1.1.3  Action:
        any
        action, suit, arbitration, governmental investigation or other legal
        proceeding.

       

      1.1.4  Adjacent
        Agreement:
        the
        Agreement of Purchase and Sale dated as of the Contract Date between Seller
        and
        Adjacent Purchaser, relating to the purchase and sale of the Adjacent
        Property.

       

      1.1.5  Adjacent
        Property:
        Lot 109
        in Square 24 in the District of Columbia, together with all right, title
        and
        interest of Seller in and to any Appurtenances thereto.

       

      1.1.6  Adjacent
        Purchaser:
        CESC
        1227 LLC, a Delaware limited liability company, an affiliate of
        Purchaser.

       

      1.1.7  Apportionment
        Time: 12:01
        a.m. local time at the Property.

       

      1.1.8  Appurtenances:
        with
        respect to a parcel of land, (i) all rights, ways, easements, privileges
        and appurtenances to such parcel, (ii) all strips and gores appurtenant to
        such parcel, and (iii) any land lying in the bed of any streets, roads and
        alleys appurtenant to such parcel.

       

      1.1.9  BNA:
        The
        Bureau of National Affairs, Inc., a Delaware corporation.

       

      1.1.10  Closing:
        the
        consummation of the purchase and sale of the Property as contemplated by
        this
        Agreement.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      1.1.11  Closing
        Date:
        the date
        on which the Closing occurs.

       

      1.1.12  Code:
        the
        Internal Revenue Code of 1986, as amended.

       

      1.1.13  Confidentiality
        Agreement:
        the
        Confidentiality Agreement executed by Purchaser in connection with the
        Property.

       

      1.1.14  Contract:
        any
        contract for services, maintenance and supplies, equipment leases, and any
        other
        contract or agreement relating to the management, use, maintenance, operation,
        provisioning or equipping of the Property, and all amendments
        thereto.

       

      1.1.15  Contract
        Date:
        as
        defined in the Preamble.

       

      1.1.16  Crystal
        City Agreement:
        the
        Agreement of Purchase and Sale dated as of the Contract Date between Crystal
        City Seller and Crystal City Purchaser, relating to the purchase and sale
        of the
        Crystal City Property.

       

      1.1.17  Crystal
        City Property:
        a
        to-be-subdivided three-dimensional lot and improvements therein comprising
        a
        portion of the land and improvements described in Arlington County Site Plan
        No.
        56, commonly known as the “Crystal Mall” complex, which lot and improvements
        consist of the office building located at 1801 South Bell Street, Arlington,
        Virginia, as shown on Schedule 1.1.6 to the Crystal City Agreement (and as
        modified from time to time in accordance therewith).

       

      1.1.18  Crystal
        City Purchaser:
        Seller,
        as purchaser under the Crystal City Agreement.

       

      1.1.19  Crystal
        City Seller: collectively,
        CESC Mall Land L.L.C., a Delaware limited liability company and CESC Mall
        L.L.C., a Virginia limited liability company, affiliates of
        Purchaser.

       

      1.1.20  Damages:
        out of
        pocket damages, liabilities, losses, claims, costs and expenses (including
        reasonable attorneys’ fees and expenses).

       

      1.1.21  Deposit:
        as
        defined in Section 2.2.

       

      1.1.22  District:
        the
        Government of the District of Columbia.

       

      1.1.23  Encumbrance:
        any
        lien, mortgage, deed of trust, security interest, pledge, charge, option,
        encroachment, easement, covenant, lease, reservation or restriction of any
        kind
        (whether recorded, perfected, inchoate, actual or contingent) affecting
        title.

       

      1.1.24  Environmental
        Laws:
        all
        Legal Requirements in effect as of the Contract Date relating to the protection
        of the environment or to human health, or regulating the manufacture, use
        or
        disposal of Hazardous Substances.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      1.1.25  EBG
        Lease:
        Lease,
        dated May 12, 1989, between Seller and Epstein Becker & Green, P.C., as
        amended. 

       

      1.1.26  Escrow
        Agent:
        Commercial Settlements, Inc., 1015 15th
        Street,
        N.W., Suite 300, Washington, D.C., Attn: David P. Nelson, as agent for the
        Title
        Company.

       

      1.1.27  Exchange
        Agreement:
        the
        Exchange Agreement dated as of the Contract Date among all of the parties
        to
        this Agreement, the Adjacent Agreement and the Crystal City Agreement, providing
        for the coordination of certain rights and remedies of the parties pursuant
        to
        such agreements. 

       

      1.1.28  Hazardous
        Substance:
        any
        pollutant, contaminant or any toxic, radioactive or otherwise hazardous
        substance, including petroleum, its derivatives, by-products and other
        hydrocarbons, asbestos, and toxic mold, in each case as regulated under
        Environmental Laws.

       

      1.1.29  Improvements:
        the
        buildings, structures, installations and other improvements, including such
        facilities, fixtures and appurtenances as shall constitute real property,
        located in or on the Land, commonly known as 1229 and 1231 25th
        Street,
        N.W., Washington, D.C.

       

      1.1.30  Intangible
        Property:
        collectively, (i) all assignable guarantees and warranties, if any, that
        relate
        to the Improvements or Personal Property, (ii) all assignable permits,
        certificates of occupancy, and other public approvals that relate to the
        Land or
        the Improvements, (iii) all plans and specifications for the Improvements,
        (iv) all rights and work product under construction, service, consulting,
        engineering, architectural and similar contracts relating to the Property,
        (v)
        books and records relating solely to ownership or operation of the Property,
        and
        (vi) keys and lock and safe combinations relating to the Property.

       

      1.1.31  Land:
        Lot
        883
        in Square 24 in the District of Columbia, together with all right, title
        and
        interest of Seller in and to any Appurtenances thereto.

       

      1.1.32  Landlord:
        Seller
        or any successor landlord under the Leases.

       

      1.1.33  Land
        Records:
        the land
        records of the District of Columbia.

       

      1.1.34  Leases:
        collectively, the leases described on Schedule
        3.10
        and any
        leases, licenses or other agreements for the occupancy of any portion of
        the
        Land or Improvements that are entered into in accordance with Section
        5.4.

       

      1.1.35  Legal
        Requirement:
        any
        federal, state, local or municipal constitution, law, statute, ordinance,
        rule,
        order or regulation.

       

      1.1.36  Letter
        of Credit: as
        defined in Section 2.2.2.1.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      1.1.37  Permitted
        Exceptions:
        collectively, (i) the matters approved or deemed approved by Purchaser in
        accordance with Section 5.2, (ii) the lien for real estate taxes and assessments
        not yet due and payable, and (iii) the rights of tenants under the
        Leases.

       

      1.1.38  Person:
        a
        natural person or any legal or governmental entity.

       

      1.1.39  Personal
        Property:
        all
        equipment, furniture, furnishings, appliances, tools, machinery, supplies
        and
        other tangible personal property owned by Seller and located at and used
        solely
        in connection with the operation of the Land and Improvements (as opposed
        to
        such items as may be used by Seller and/or BNA exclusively as an occupant
        of
        office space in the Improvements and in connection with Seller’s and/or BNA’s
        publishing and printing business therein, all of which items shall remain
        the
        property of Seller or BNA, as appropriate).

       

      1.1.40  Property:
        collectively, (i) the Land, (ii) all right, title and interest of Seller in
        and to the Improvements, (iii) all of Seller’s right, title and interest in and
        to the Personal Property, the Intangible Property, the Leases and the
        Contracts.

       

      1.1.41  Purchase
        Price:
        as
        defined in Section 2.2.

       

      1.1.42  Purchaser:
        as
        defined in the Preamble.

       

      1.1.43  Purchaser
        Indemnified Parties:
        as
        defined in Section 7.5.1.

       

      1.1.44  Purchaser’s
        Designee:
        as
        defined in Section 11.1.

       

      1.1.45  Seller:
        as
        defined in the Preamble.

       

      1.1.46  Seller
        Indemnified Parties:
        as
        defined in Section 7.5.2.

       

      1.1.47  Seller’s
        Knowledge:
        the
        actual current knowledge of Les Holmes and Elizabeth Brown (and for any time
        period after any such Person ceases to be in the employ of BNA, such Person’s
        replacement with respect to such Person’s responsibility with respect to the
        Property), without any obligation to review any files or make inquiry of
        any
        Person. No knowledge of any other Person shall be imputed to
        Seller.

       

      1.1.48  Settlement
        Statement:
        as
        defined in Section 10.1.

       

      1.1.49  Survey:
        as
        defined in Section 5.2.2.

       

      1.1.50  Survey
        Standards:
        as
        defined in Section 5.2.2.

       

      1.1.51  Tax
        Deferral Agreement:
        the
        Agreement among, Seller, BNA and the District dated September 4, 1996, pursuant
        to which the District agreed to defer payment of real estate taxes with respect
        to the Land and Improvements.

       

      1.1.52  Title
        Commitment:
        as
        defined in Section 5.2.1.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      1.1.53  Title
        Company:
        Commonwealth Land Title Insurance Company, acting through Escrow Agent as
        its
        agent.

       

      1.1.54  Transaction
        Documents: collectively,
        this Agreement and the documents executed at Closing by Seller and/or Purchaser
        (or Purchaser’s Designee).

       

      1.1.55  Vornado:
        Vornado
        Realty L.P., a Delaware limited partnership.

       

      1.2  Governing
        Law.
        This
        Agreement shall be governed by and construed in accordance with the laws
        of the
        District of Columbia (without
        reference to conflicts of laws principles).

       

      1.3  Captions,
        Numbering and Headings. Captions,
        numbering and headings of Articles, Sections, Schedules and Exhibits in this
        Agreement are for convenience of reference only and shall not be considered
        in the
        interpretation of this Agreement. References in this Agreement to Articles,
        Sections, Schedules and Exhibits shall be deemed to be references to such
        Articles, Sections, Schedules and Exhibits in this Agreement unless otherwise
        expressly specified.

       

      1.4  Number;
        Gender.
        Whenever
        required by the context, the singular shall include the plural, the neuter
        gender shall include the male gender and female
        gender,
        and vice versa.

       

      1.5  Business
        Day.
        In the
        event that the date for performance of any obligation under this Agreement
        falls
        on other than a business day, then such obligation shall be performed on
        the
        next succeeding business day.

       

      1.6  Severability.
        In
        the
        event that one or more of the provisions of this Agreement shall be held
        to be
        illegal, invalid or unenforceable, each such provision
        shall be
        deemed severable and the remaining provisions of this Agreement shall continue
        in full force and effect, unless this construction would operate as an undue
        hardship on Seller or Purchaser or would constitute a substantial deviation
        from
        the general intent of the parties as reflected in this Agreement.

       

      1.7  No
        Oral Modifications or Waivers.
        No
        modification of this Agreement
        shall be
        valid or effective unless the same is in writing and signed by Seller and
        Purchaser. No purported waiver of any of the provisions of this Agreement
        shall
        be valid or effective unless the same is in writing and signed by the party
        against whom it is sought to be enforced. Notwithstanding the foregoing,
        the
        parties agree that the time for performance of any matter to be performed
        pursuant to this Agreement may be modified by mutual exchange of electronic
        mail
        by the parties or their respective counsel.

       

      1.8  Exhibits.
        All
        Schedules and Exhibits referenced in this Agreement
        are
incorporated
        by this
        reference as if fully set forth in this Agreement, and all references to
        this
        Agreement shall be deemed to include all such Schedules and
        Exhibits.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      1.9  Integration.
        This
        Agreement, all Schedules and Exhibits
        appended
to
        this
        Agreement,
        the
        documents and agreements referenced in this Agreement, the Adjacent Agreement,
        the Exchange Agreement, the Access Agreement, and the Confidentiality Agreement
        contain the entire understanding between Seller and Purchaser with respect
        to
        the sale of the Property, and are intended to be a full integration of all
        prior
        or contemporaneous agreements, conditions, understandings or undertakings
        between Seller and Purchaser with respect thereto. There are no promises,
        agreements, conditions, undertakings, understandings, warranties or
        representations, whether oral, written, express or implied, between Seller
        and
        Purchaser with respect to the sale of the Property other than as are expressly
        set forth in this Agreement, the Schedules and Exhibits appended to this
        Agreement, the documents and agreements referenced in this Agreement, the
        Adjacent Agreement, the Exchange Agreement, the Access Agreement, and the
        Confidentiality Agreement. Without limiting the generality of the foregoing,
        the
        offer letter dated as of May 31, 2005 between Seller and Charles E. Smith
        Commercial Realty (an affiliate of Purchaser) is hereby superseded and shall
        be
        of no further force or effect.

       

      1.10  No
        Construction Against Drafter. This
        Agreement has been negotiated and prepared by Seller and Purchaser and their
        respective attorneys and, should
        any
        provision of this Agreement require judicial interpretation,
        the
        court interpreting or construing such provision shall not apply the rule
        of
        construction that a document is to be construed more strictly against one
        party.

       

      1.11  Including.
        The term
“including,” and variants thereof, shall mean “including without
        limitation.”

       

      ARTICLE
        2.  
        SALE OF PROPERTY

       

      2.1  Sale
        and Purchase.
        Subject
        to and in accordance with the terms of this Agreement, Seller shall sell
        to
        Purchaser, and Purchaser shall purchase from Seller, all of the
        Property.

       

      2.2  Purchase
        Price.

       

      2.2.1  The
        purchase price (“Purchase Price”) for the sale and purchase of the Property
        shall be Seventy-One Million Dollars ($71,000,000.00), subject to the debits
        and
        credits described in Article 10.

       

      2.2.2  The
        Purchase Price shall be payable as follows:

       

      2.2.2.1  Within
        three (3) business days following the Contract Date, Purchaser shall deposit
        into escrow with Escrow Agent the sum of One Million Two Hundred Eighty Thousand
        Dollars ($1,280,000.00), which deposit may be in the form of either immediately
        available funds or an irrevocable sight draft letter of credit in the form
        attached as Exhibit
        E
        and
        otherwise in form and content reasonably acceptable to Seller (“Letter of
        Credit”).

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      2.2.2.2  The
        Letter of Credit deposited pursuant to Section 2.2.2.1, any proceeds of a
        draw on such Letter of Credit pursuant to this Agreement, any immediately
        available funds deposited by Purchaser pursuant to Section 2.2.2.1 and any
        interest accrued on such proceeds or funds, shall be referred to collectively
        as
        the “Deposit.” The Deposit shall be held in accordance with Section 8.1. At
        Closing, the cash portion of the Deposit shall, at Purchaser’s option, either be
        paid to or at the direction of Seller and credited against the Purchase Price
        or
        returned to Purchaser, and any Letter of Credit not previously drawn by Escrow
        Agent shall be returned to Purchaser, together with a letter from Seller
        authorizing the termination of such Letter of Credit.

       

      2.2.2.3  At
        Closing, Purchaser shall pay to or at the direction of Seller by wire transfer
        of immediately available funds, the balance of the Purchase Price (net of
        the
        cash portion of the Deposit), as adjusted for the debits and credits described
        in Article 10.

       

      2.2.2.4  Any
        Letter of Credit shall be issued by a financial institution acceptable to
        Seller
        and having a long-term unsecured debt rating from Standard & Poor’s
        Corporation of not less than “A” (or equivalent from another nationally
        recognized rating agency).

       

      2.3  Condition
        of Property. Purchaser
        acknowledges that (i) Purchaser has been given a reasonable opportunity to
        inspect and investigate the Property, all improvements thereon and all aspects
        relating thereto, including all of the physical, environmental and operational
        aspects of the Property, either independently or through agents and experts
        of
        Purchaser’s choosing, and (ii) Purchaser will acquire the Property based solely
        upon Purchaser’s own investigation and inspection of the Property and the
        representations, warranties and covenants of Seller expressly set forth in
        the
        Transaction Documents executed by Seller. Seller
        and Purchaser agree that, except as expressly provided for in this Agreement
        and
        the other Transaction Documents executed by Seller, (i) the Property shall
        be
        sold and Purchaser shall accept possession of the Property on the Closing
        Date
“AS IS,” “WHERE IS,” and “WITH ALL FAULTS,” and (ii) such sale shall be without
        representation or warranty of any kind, whether express, implied, statutory
        or
        otherwise, including any warranty of income potential, operating expenses,
        uses,
        merchantability, floor area ratio, development potential, or fitness for
        a
        particular purpose, and Seller hereby disclaims and renounces any such
        representation or warranty. Purchaser further acknowledges and agrees that,
        except as expressly provided in the Transaction Documents executed by Seller,
        Seller shall be under no duty to make any affirmative disclosure regarding
        any
        matter which may be known to Seller, or its officers, directors, contractors,
        agents or employees, and that it is relying solely upon its own inspection
        of
        the Property and not upon any representations made to it by any Person
        whomsoever on Seller’s behalf.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      ARTICLE
        3.  
        SELLER’S REPRESENTATIONS AND WARRANTIES

       

      Seller
        hereby represents and warrants to Purchaser as follows:

       

      3.1  Good
        Standing. Seller
        is
        a corporation duly formed, validly existing and in good standing under the
        laws
        of the State of Delaware, and qualified to transact business and in good
        standing under the laws of the District of Columbia. Seller has full corporate
        power and authority to execute this Agreement and to consummate the transaction
        contemplated by this Agreement.

       

      3.2  Due
        Authorization.
        The
        execution, delivery and performance of this Agreement by Seller and the
        consummation by Seller of the transactions contemplated by this Agreement
        have
        been duly and validly authorized by all requisite actions of Seller. Assuming
        the due execution and delivery of this Agreement by Purchaser, this Agreement
        constitutes the valid and binding obligation of Seller, enforceable against
        Seller in accordance with its terms.

       

      3.3  No
        Violations. The
        execution, delivery and performance of this Agreement by Seller and the
        consummation by Seller of the transactions contemplated by this Agreement
        will
        not:  (i) violate any Legal Requirement or any order of any court
        or governmental authority that is binding on Seller or the Property; or
        (ii) result in a breach of or default under any contract or other agreement
        to which Seller is a party or by which the Property is bound or any provision
        of
        the organizational documents of Seller.

       

      3.4  Bankruptcy.
        Seller
        is not the subject debtor under any federal, state or local bankruptcy or
        insolvency proceeding, or any other proceeding for dissolution, liquidation
        or
        winding up of its assets.

       

      3.5  Litigation.
        Except
        as set forth on Schedule
        3.5,
        there
        are no Actions pending or, to Seller’s Knowledge, threatened against Seller or
        relating to the ownership, operation, development, use or occupancy of the
        Property, before any court or governmental authority, which if adversely
        determined would affect Seller’s ability to enter into or perform this Agreement
        or would materially adversely affect the ownership or operation of, or title
        to,
        the Property.

       

      3.6  Violations
        of Law.
        Seller
        has not received written notice from any governmental authority alleging
        a
        violation of any Legal Requirement affecting the Property that has not been
        corrected. Seller shall have the right to update the representation set forth
        in
        this Section 3.6 to reflect any such written notice that is received by Seller
        after the Contract Date.

       

      3.7  Condemnation.
        There
        are no pending condemnation actions with respect to the Property, and to
        Seller’s Knowledge there are no threatened or contemplated condemnation actions
        with respect to the Property. Seller shall have the right to update the
        representation set forth in this Section 3.7 to reflect (i) any condemnation
        that becomes pending after the Contract Date, or (ii) any threatened or
        contemplated condemnation that first becomes known to Seller after the Contract
        Date, in which event the provisions of Article 9 shall control.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      3.8  Environmental
        Matters.
        To
        Seller’s Knowledge, other than (i) Hazardous Substances used in the ordinary
        course of maintaining and cleaning the Property in commercially reasonable
        amounts, and (ii) Hazardous Substances used as fuels, lubricants or otherwise
        in
        connection with vehicles, machinery and equipment located at the Property
        in
        commercially reasonable amounts, no Hazardous Substances are present on or
        in
        the Property. To Seller’s Knowledge, the Hazardous Substances described in the
        foregoing clauses (i) and (ii) are being used and disposed of in compliance
        with
        all applicable Environmental Laws.

       

      3.9  Contracts.
        There
        are
        no Contracts that will affect the Property as of the Closing Date, except
        (i)
        Permitted Exceptions, and (ii) as otherwise permitted under this
        Agreement.

       

      3.10  Leases.
        There
        are no leases, licenses or other agreements permitting the possession or
        occupancy of all or any portion of the Land or Improvements other than those
        identified on Schedule
        3.10.
        Seller
        has provided to Purchaser a correct and complete copy of each Lease. To Seller’s
        Knowledge, the Leases are in full force and effect. Except
        as
        set forth in Schedule
        3.10,
        there
        are no outstanding obligations on the part of the Landlord under the Leases
        to
        construct or pay for tenant improvements or to pay any leasing commissions,
        and
        the Leases provide for no free rent periods that have not expired. Seller
        shall have the right to update the representation set forth in this Section
        3.10
        to reflect Leases executed, terminated or modified after the Contract Date
        in
        accordance with this Agreement.

       

      3.11  Foreign
        Person.
        Seller
        is not a “foreign person” as defined in Section 1445 of the Code.

       

      ARTICLE
        4.  
        PURCHASER’S REPRESENTATIONS AND WARRANTIES

       

      Purchaser
        hereby represents and warrants to Seller as follows:

       

      4.1  Good
        Standing.
        Purchaser is a corporation duly organized, validly existing and in good standing
        under the laws of the State of Delaware, and has full power and authority
        to
        conduct the business in which it is now engaged. Purchaser is duly qualified
        to
        do business and in good standing under the laws of the District of Columbia,
        or
        will be so qualified and in good standing as of the Closing Date.

       

      4.2  Due
        Authorization.
        The
        execution, delivery and performance of this Agreement by Purchaser and the
        consummation by Purchaser of the transactions contemplated by this Agreement
        have been duly and validly authorized by all requisite actions of Purchaser.
        Assuming the due execution and delivery of this Agreement by Seller, this
        Agreement constitutes the valid and binding obligation of Purchaser, enforceable
        against Purchaser in accordance with its terms.

       

      4.3  No
        Violations. The
        execution, delivery and performance of this Agreement by Purchaser and the
        consummation by Purchaser of the transactions contemplated by this Agreement
        will not:  (i) violate any Legal Requirement or any order of any
        court or governmental authority that is binding on Purchaser; or
        (ii) result in a breach of or default under (A) any contract or other
        agreement to which Purchaser is a party or (B) any provision of the
        organizational documents of Purchaser.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      4.4  Bankruptcy.
        Purchaser is not the subject debtor under any federal, state or local bankruptcy
        or insolvency proceeding, or any other proceeding for dissolution, liquidation
        or winding up of its assets.

       

      4.5  Litigation.
        There
        are no Actions pending or, to Purchaser’s knowledge, threatened against
        Purchaser before any court or governmental authority, an adverse determination
        of which would materially adversely affect (i) the financial condition of
        Purchaser, or (ii) Purchaser’s ability to enter into or perform this
        Agreement.

       

      4.6  Terrorist
        Organizations Lists.
        Purchaser is not acting, directly or indirectly, for or on behalf of any
        Person
        named by the United States Treasury Department as a Specifically Designated
        National and Blocked Person, or for or on behalf of any Person designated
        in
        Executive Order 13224 as a Person who commits, threatens to commit, or
        supports terrorism. Purchaser is not engaged in the transaction contemplated
        by
        this Agreement directly or indirectly on behalf of, or facilitating such
        transaction directly or indirectly on behalf of, any such Person.

       

      ARTICLE
        5.  
        ACTIONS PENDING CLOSING

       

      5.1  Due
        Diligence.

       

      5.1.1  Purchaser
        acknowledges that Purchaser has completed such inspections and investigations
        of
        the Property as Purchaser deems desirable to evaluate the financial and physical
        condition of the Property and such other matters that Purchaser may deem
        relevant and hereby waives any further due diligence period.

       

      5.1.2  Prior
        to
        Closing, Purchaser and Purchaser’s agents and contractors shall have the right
        to enter upon the Property during regular business hours and upon reasonable
        prior notice to Seller. Purchaser and Purchaser’s agents and contractors may at
        Seller’s option be accompanied by a representative of Seller during any such
        entry upon the Property. Purchaser agrees that all inspections of the Property
        shall be subject to the rights or security requirements of tenants under
        Leases,
        and shall be conducted in a manner not unreasonably disruptive to tenants,
        guests or invitees at the Property or otherwise to the operation of the
        Property. Purchaser shall have the right to interview the tenant under any
        Lease, provided, however, that Purchaser shall first deliver written notice
        thereof to Seller, and at Seller’s option a representative of Seller shall
        participate in any such interviews. In the event Purchaser desires to conduct
        any physically invasive due diligence, Purchaser shall provide Seller with
        the
        scope of the work to be done and the name of the contractor to conduct such
        work, and shall request Seller’s prior consent thereto, which consent shall not
        be unreasonably withheld. Prior to entry onto the Property, Purchaser shall
        provide Seller with a certificate of insurance evidencing that Purchaser
        maintains a commercial general liability policy that names Seller as an
        additional insured, in such amounts and from such insurers as Seller shall
        approve, such approval not to be unreasonably withheld. Purchaser shall
        (i) restore the Property, at its own expense, to substantially the same
        condition which existed prior to any inspections or other activities of
        Purchaser thereon; and (ii) be responsible for and pay any and all liens by
        contractors, subcontractors, materialmen, or laborers performing the inspections
        or any other work for Purchaser, its agents or contractors on or related
        to the
        Property. Purchaser agrees to and hereby does indemnify, defend and hold
        harmless Seller and its affiliates, members, partners, shareholders, officers,
        directors, employees, agents, representatives, licensees, and the successors
        of
        any of the foregoing, harmless from and against any and all damages including
        mechanic’s and materialmen’s liens, caused by the entry by Purchaser and/or any
        of Purchaser’s agents or contractors onto the Property pursuant to this
        Section 5.1.2, provided that Purchaser shall not be so liable for the mere
        discovery by Purchaser or its agents or contractors of any existing condition
        at
        the Property. Purchaser’s obligations pursuant to this Section 5.1 shall
        survive the Closing (without limitation as to time) or earlier termination
        of
        this Agreement.

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      5.1.3  Seller
        has made available to Purchaser for inspection and copying or delivered to
        Purchaser such documents, materials and information concerning the Property
        as
        Seller may have in its possession or under its control, excluding only
        (i) materials that Seller shall have obtained or developed in connection
        with the potential sale of the Property, (ii) materials that are subject to
        attorney-client privilege, (iii) internal communications, and (iv) internal
        projections, forecasts, valuations, budgets and analyses.

       

      5.1.4  Purchaser
        shall,
        at no
        cost to Seller (but
        without representation or warranty of any kind), furnish to Seller copies
        of any
third-party
        reports
        received by Purchaser relating to any inspections of the Property conducted
        on
        Purchaser’s behalf. Upon any termination of this Agreement (other than a
        termination resulting from a default by Seller), Purchaser shall (i) assign
        all
        of its right, title and interest in any such third party reports to Seller
        (without representation or warranty of any kind) and (ii) return all documents,
        materials and information (and all copies thereof) concerning the Property
        that
        Seller has provided to Purchaser. Purchaser’s obligation in this Section 5.1.4
        shall survive the termination of this Agreement.

       

      5.2  Title
        and Survey.

       

      5.2.1  Purchaser
        acknowledges receipt from Title Company, prior to the Contract Date, of the
        commitment for an ALTA Owner’s Policy of Title Insurance attached as
Schedule
        5.2.1
        (“Title
        Commitment”) for the Land and Improvements, accompanied by a copy of all
        documents referred to in the Title Commitment.

       

      5.2.2  Purchaser
        has obtained, prior to the Contract Date, a survey of the Property by VIKA
        dated
        August 4, 2005, and revised November 1, 2005 (“Survey”)
        prepared
        in accordance with the Minimum Standard Detail Requirements and Classifications
        for ALTA/ACSM Land Title Surveys published in 1999 (“Survey
        Standards”).

       

      5.2.3  All
        Encumbrances as of the effective date of the Title Commitment (excluding
        Encumbrances shown on Schedule B, Section 1 of the Title Commitment),
        and all items shown on the Survey, shall be deemed to have been approved
        by
        Purchaser and shall be Permitted Exceptions for all purposes under this
        Agreement.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      5.2.4  Seller
        shall cure at or before the Closing all Encumbrances other than the Permitted
        Exceptions. Seller may use a portion of the Purchase Price to effect such
        cure
        at Closing. Seller shall have the right to mortgage the Property prior to
        Closing, provided that that lien of such mortgage shall be released at or
        prior
        to Closing at Seller’s sole cost and expense.

       

      5.3  Operation
        of Property. Prior
        to
        Closing, except as otherwise expressly provided in this Agreement:

       

      5.3.1  Seller
        shall continue to operate the Property in the ordinary course of business
        consistent with the practices and procedures in effect as of the Contract
        Date.

       

      5.3.2  Seller
        shall maintain and repair the Improvements substantially in their present
        condition, except for reasonable wear and tear and damage by casualty or
        condemnation, and except for such other matters as may be agreed upon by
        the
        parties in writing following a written request by Seller that Purchaser waive
        Seller’s obligation hereunder with respect to specific repairs or replacements,
        which request shall be considered by Purchaser in good faith in light of
        Purchaser’s then-current plans to redevelop (or not) the
        Improvements.

       

      5.3.3  Seller
        shall not remove any Personal Property, except as may be required for repair
        or
        replacement in the ordinary course of business, and replacement shall be
        of
        approximately equal quality and quantity as the removed item of Personal
        Property.

       

      5.3.4  Seller
        shall maintain, at its cost, standard premises operations liability coverage,
        and shall add Purchaser as an additional insured promptly after the Contract
        Date.

       

      5.4  Leases.

       

      5.4.1  Prior
        to
        Closing, except as otherwise set forth in this Agreement, Seller shall not
        (i)
        enter into any new lease, license or other agreement for the occupancy of
        the
        Improvements, or (ii) modify any Lease in a manner that would be binding
        on
        Purchaser from and after Closing, without the prior written approval of
        Purchaser in each instance, such approval to be granted or withheld in
        Purchaser’s sole discretion. Purchaser’s approval shall not be required with
        respect to any modification of any Lease that is required under the terms
        of
        such Lease but Seller shall deliver to Purchaser written notice of such
        modification or renewal within five (5) days of Seller’s receipt of the same.
        Prior to Closing, Seller shall perform its obligations under each Lease,
        and
        shall endeavor to promptly collect all rents due under the Leases in accordance
        with Seller’s usual practices.

       

      5.4.2  Seller shall
        use
        commercially reasonable efforts to obtain from the tenant under each Lease
        and
        deliver to Purchaser, prior to Closing, an estoppel certificate in substantially
        the form of Exhibit
        D
        or in
        the form required by such tenant’s Lease, dated no earlier than the date that is
        thirty (30) days prior to the scheduled date for Closing.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      5.5  Contracts.
        Prior
        to
        Closing, Seller shall terminate all Contracts affecting or relating to the
        Property, other than Contracts that constitute Permitted
        Exceptions.

       

      5.6  Title.
        Except
        as expressly permitted or required under this Agreement, prior to Closing,
        Seller shall not cause or voluntarily permit any change in title to the Property
        or any Encumbrance against title to the Property.

       

      5.7  Updates
        to Representations.
        Prior to
        Closing, Seller and Purchaser shall each promptly notify the other in writing
        if
        it becomes aware of any fact or condition that is inconsistent with any of
        Seller’s representations or warranties under this Agreement. Such
        representations and warranties shall automatically be deemed modified to
        reflect
        all information actually known to Purchaser prior to the Contract Date,
        including information contained in all third-party due diligence reports
        prepared at the direction of Purchaser.

       

      5.8  Satisfaction
        of Conditions.
        Prior to
        Closing, Seller and Purchaser shall each use good faith, commercially reasonable
        efforts to satisfy the conditions to Closing set forth in Article
        6.

       

      5.9  Tax
        Deferral.
        At or
        prior to Closing, Seller shall pay (or shall cause BNA to pay) all real estate
        taxes deferred by the District pursuant to the Tax Deferral Agreement, together
        with any interest, penalties and other amounts payable in connection
        therewith.

       

      5.10  Crystal
        City Agreement: Seller
        shall perform the obligations of Crystal City Purchaser under the Crystal
        City
        Agreement. Purchaser shall cause Crystal City Seller to perform the obligations
        of Crystal City Seller under the Crystal City Agreement.

       

      5.11  Adjacent
        Agreement: Seller
        shall perform its obligations under the Adjacent Agreement. Purchaser shall
        cause Adjacent Purchaser to perform its obligations under the Adjacent
        Agreement.

       

      5.12  Access
        for Marketing:
        Prior to
        Closing, Purchaser shall have the right, upon reasonable prior notice to
        Seller
        and during normal business hours, to show the Improvements to prospective
        tenants, investors and other interested parties.

       

      5.13  Pre-Development
        Activities.
        Prior to
        Closing, Purchaser shall have the right to apply for and pursue the following:
        (i) a planned unit development designation, variances or other zoning relief
        affecting all or any portion of the Property and/or the Adjoining Property,
        (ii)
        the subdivision of the Property and/or the Adjoining Property into one or
        more
        record lots or assessment and taxation lots, and (iii) such other land use,
        development and construction permits and approvals as may be required in
        connection with Purchaser’s planned redevelopment of the Property and/or the
        Adjoining Property. All costs in connection with any such proceedings shall
        be
        borne by Purchaser. Seller shall, at Purchaser’s expense, cooperate with
        Purchaser in such manner as Purchaser may reasonably request in connection
        with
        such proceedings. To the extent required by applicable Legal Requirements,
        Seller, as the owner of the Property, shall execute or join in any documents
        required in connection with the foregoing (including applications for planned
        unit development designation, variances or other zoning relief), provided
        that
        (a) Seller shall not be exposed to any liability as a result thereof (or
        shall
        be indemnified by Purchaser for any such liability) and (b) the proposed
        action
        shall not impose any obligations of any kind on Seller nor adversely affect
        the
        Property prior to Closing.

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      ARTICLE
        6.  
        CONDITIONS TO CLOSING

       

      6.1  Purchaser’s
        Conditions to Closing.
        The
        obligation of Purchaser to consummate the Closing shall be subject to the
        satisfaction of each of the following conditions, any or all of which may
        be
        waived in whole or in part by Purchaser:

       

      6.1.1  Each
        of
        Seller’s representations and warranties set forth in this Agreement (as modified
        by all modifications and updates expressly permitted by Article 3 or the
        second sentence of Section 5.7) shall be correct in all material respects
        as of
        the Closing Date.

       

      6.1.2  Seller
        shall have performed all of its material obligations under this Agreement
        required at or prior to Closing.

       

      6.1.3  The
        Title
        Company shall be prepared to issue to Purchaser, immediately upon consummation
        of Closing, an Owner’s Policy of Title Insurance consistent with the Title
        Commitment, at standard rates and in an amount equal to the Purchase Price
        paid
        by Purchaser at Closing.

       

      6.1.4  Unless
        the Crystal City Agreement has been terminated as a result of a default by
        Crystal City Seller thereunder, Closing shall have occurred, or shall
        concurrently be occurring, under the Crystal City Agreement.

       

      6.1.5  Closing
        shall have occurred, or shall concurrently be occurring, under the Adjacent
        Agreement.

       

      6.2  Failure
        of Purchaser’s Condition.
        In the
        event of the failure of any condition set forth in Section 6.1.1 through
        6.1.5, Purchaser, at its sole election, may (i) terminate this Agreement
        and (subject to the last sentence of this Section 6.2) receive a return of
        the
        Deposit, (ii) waive the condition and proceed to Closing, or (iii) extend
        the
        date for Closing for such additional period of time (not to exceed one hundred
        twenty (120) days in the aggregate for all such extensions) as may be reasonably
        required to allow such condition to be satisfied. Nothing set forth in this
        Section 6.2 shall affect Purchaser’s rights or remedies under Section 8.3 with
        respect to any breach of this Agreement by Seller.

       

      6.3  Seller’s
        Conditions to Closing.
        The
        obligation of Seller to consummate the Closing shall be subject to the
        satisfaction of each of the following conditions, any or all of which may
        be
        waived in whole or in part by Seller:

       

      6.3.1  Each
        of
        Purchaser’s representations and warranties set forth in this Agreement shall be
        correct in all material respects as of the Closing Date.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      6.3.2  Each
        of
        Purchaser’s representations and warranties set forth in this Agreement shall be
        correct in all material respects as if made by Purchaser’s Designee as of the
        Closing Date.

       

      6.3.3  Purchaser
        shall have performed all of its material obligations under this Agreement
        required at or prior to Closing.

       

      6.3.4  Unless
        the Crystal City Agreement has been terminated as a result of a default by
        Crystal City Purchaser thereunder, Closing shall have occurred, or shall
        concurrently be occurring, under the Crystal City Agreement.

       

      6.3.5  Closing
        shall have occurred, or shall concurrently be occurring, under the Adjacent
        Agreement.

       

      6.4  Failure
        of Seller’s Condition. In
        the
        event of the failure of any condition precedent set forth in Section 6.3.1
        to
        6.3.5, Seller, at its sole election, may (i) terminate this Agreement, in
        which
        event the Deposit (subject to the last sentence of this Section 6.4) shall
        be
        returned to Purchaser, (ii) waive the condition and proceed to Closing, or
        (iii) extend the date for Closing for such additional period of time (not
        to exceed one hundred twenty (120) days in the aggregate for all such
        extensions) as may be reasonably required to allow Purchaser to satisfy such
        condition. Nothing set forth in this Section 6.4 shall affect Seller’s rights or
        remedies under Section 8.2 with respect to any breach of this Agreement by
        Purchaser.

       

      ARTICLE
        7.  
        CLOSING

       

      7.1  Closing.
        Closing
        shall be held on the date that closing is required to occur under the Crystal
        City Agreement (including any extensions of closing thereunder), but not
        earlier
        than December 1, 2006.

       

      7.1.1  Closing
        shall be conducted through an escrow with Escrow Agent. Seller and Purchaser
        shall execute (or cause their counsel to execute) such additional instructions
        to Escrow Agent as may be required in connection therewith.

       

      7.1.2  Pre-closing
        (“Pre-Closing”) shall be held at the Washington, D.C., offices of DLA Piper
        Rudnick Gray Cary US LLP on the business day immediately preceding the scheduled
        date for Closing. At Pre-Closing, Seller and Purchaser shall execute and
        deliver
        to Escrow Agent all documents and deliveries required under Sections 7.2
        and
        7.3, other than the Settlement Statement and payment of the amounts required
        to
        be paid at Closing. Seller and Purchaser shall complete and execute the
        Settlement Statement, and Seller and Purchaser shall pay the amounts required
        to
        be paid at Closing to Escrow Agent at Closing by wire transfer of immediately
        available funds, such that the amounts due to or on behalf of Seller pursuant
        to
        the Settlement Statement shall be wire transferred into a bank account or
        accounts designated by Seller no later than 3:00 p.m. local time at the Property
        on the Closing Date.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      7.1.3  Unless
        Closing under the Crystal City Agreement shall have been extended pursuant
        to
        Section 7.1.2.2 of the Crystal City Agreement, Seller shall have the right,
        in
        Seller’s sole but reasonable discretion, to continue for a limited period as
        described below to occupy the portions of the Land and Improvements occupied
        by
        Seller immediately prior to Closing (“Seller Premises”) in order to accommodate
        Seller’s move to the Crystal City Property. If Seller shall exercise such right,
        then at Closing, Purchaser, as landlord, and Seller, as tenant, shall execute
        a
        lease (“Seller Lease”) of the Seller Premises. The Seller Lease shall (i)
        provide for rental per square foot equal to the rental per square foot
        (including real estate taxes and operating expense passthroughs), taking
        into
        account a monthly rent set-off in the amount of $27,830.40, then payable
        under
        the terms of the EBG Lease, (ii)  provide that Seller accepts the Seller
        Premises in an “as is” condition on the Closing Date, (iii) provide for a term
        commencing on the Closing Date and expiring on a date designated by Seller
        that
        is not later than the earlier of (x) ninety (90) days after the Closing Date
        or
        (y) such date (which shall not be less than thirty (30) days after the Closing
        Date) as may be required by Purchaser in order to accommodate a new third
        party
        tenant or to commence redevelopment activities, and (iv) otherwise be in
        substantially the same form as the Charles E. Smith Commercial Realty standard
        form of office lease, with such changes thereto as Seller and Purchaser,
        each
        acting reasonably and in good faith, shall mutually agree upon.

       

      7.1.4  Except
        as
        otherwise provided in Section 7.1.2.1 of the Crystal City Agreement, Seller
        shall surrender the Land and Improvements at Closing (or, if applicable,
        the
        expiration of the Seller Lease) and shall, at its sole cost and expense,
        remove
        from the Land and Improvements all equipment, furniture, furnishings,
        appliances, tools, machinery, supplies and other tangible personal property
        owned or leased by Seller other than the Personal Property.

       

      7.2  Seller’s
        Closing Deliveries.
        At or
        prior to Closing, Seller shall deliver to Escrow Agent the
        following:

       

      7.2.1  The
        Deed
        (“Deed”) in the form of Exhibit
        A,
        conveying fee title to the Land and Improvements to Purchaser, duly executed
        and
        acknowledged by Seller, and dated as of the Closing Date.

       

      7.2.2  The
        Bill
        of Sale (“Bill of Sale”) in the form of Exhibit
        B,
        conveying all of Seller’s right, title and interest in the Personal Property to
        Purchaser, duly executed by Seller, and dated as of the Closing
        Date.

       

      7.2.3  The
        Assignment (“Assignment”) in the form of Exhibit
        C,
        assigning all of Seller’s right, title and interest in the Leases, Contracts and
        Intangible Property to Purchaser, duly executed by Seller, and dated as of
        the
        Closing Date.

       

      7.2.4  If
        Seller
        has exercised its right to continue to occupy the Seller Premises following
        Closing, the Seller Lease, duly executed by Seller, and dated as of the Closing
        Date.

       

      7.2.5  A
        certificate, duly executed by Seller, confirming that its representations
        and
        warranties set forth in this Agreement are correct in all material respects
        as
        if made on the Closing Date (or noting any exceptions).

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      7.2.6  A
        title
        affidavit, in customary form reasonably satisfactory to the Title Company
        and
        Seller, duly executed by Seller.

       

      7.2.7  An
        affidavit, in the form required by the Code and the regulations issued pursuant
        thereto, to the effect that Seller is not a foreign person within the meaning
        of
        the Code.

       

      7.2.8  Such
        evidence of the power and authority of Seller to consummate the transactions
        described in this Agreement as may be reasonably required by Purchaser or
        Title
        Company.

       

      7.2.9  A
        written
        direction to Escrow Agent to disburse the Deposit to Seller in accordance
        with
        Section 8.1.2.1.

       

      7.2.10  To
        the
        extent within the possession or under the control of the Seller, originals
        of
        the Leases, Contracts and Intangible Property.

       

      7.2.11  A
        Settlement Statement in accordance with Section 10.1, duly executed by
        Seller.

       

      7.2.12  Notices
        to the tenants under all Leases, and to vendors under all Contracts, informing
        them of the change in ownership of the Property.

       

      7.2.13  Such
        other documents and instruments as are customary and as may be reasonably
        requested by Purchaser, Escrow Agent or Title Company, to effectuate the
        transactions contemplated by this Agreement.

       

      7.3  Purchaser’s
        Closing Deliveries.
        At or
        prior to Closing, Purchaser shall deliver to Escrow Agent the
        following:

       

      7.3.1  The
        Assignment, duly executed by Purchaser or Purchaser’s Designee, and dated as of
        the Closing Date.

       

      7.3.2  If
        Seller
        has exercised its right to continue to occupy the Seller Premises following
        Closing, the Seller Lease, duly executed by Purchaser or Purchaser’s Designee,
        and dated as of the Closing Date.

       

      7.3.3  A
        certificate, duly executed by Purchaser, confirming that its representations
        and
        warranties set forth in this Agreement are correct in all material respects
        as
        if made on the Closing Date (or noting any exceptions).

       

      7.3.4  A
        certificate from Purchaser’s Designee, duly executed by Purchaser’s Designee,
        confirming that Purchaser’s representations and warranties set forth in the
        Agreement are correct in all material respects as if made by such Purchaser’s
        Designee on the Closing Date (or noting any exceptions).

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      7.3.5  Such
        evidence of the power and authority of Purchaser and Purchaser’s Designee to
        consummate the transactions described in this Agreement as may be reasonably
        required by Seller or Title Company.

       

      7.3.6  A
        written
        direction to Escrow Agent to disburse the Deposit to Seller in accordance
        with
        Section 8.1.2.1.

       

      7.3.7  The
        balance of the Purchase Price, as adjusted pursuant to
        Article 10.

       

      7.3.8  A
        Settlement Statement in accordance with Section 10.1, duly executed by Purchaser
        or Purchaser’s Designee.

       

      7.3.9  Such
        other documents and instruments as are customary and as may be reasonably
        requested by Seller, Escrow Agent or Title Company to effectuate the
        transactions contemplated by this Agreement.

       

      7.4  Closing
        Costs.
        All
        transfer and recordation taxes imposed upon the recordation of the Deed and
        all
        escrow or settlement fees of Escrow Agent shall be borne equally by Seller
        and
        Purchaser. Seller and Purchaser shall each bear its own counsel’s fees and
        expenses in connection with the transactions described in this Agreement.
        Purchaser shall pay all costs of Purchaser’s due diligence investigations of the
        Property, title insurance premiums and costs, and costs of the Survey. Any
        other
        closing costs shall be borne by the parties in accordance with custom for
        transactions similar to the transactions described herein in the District
        of
        Columbia.

       

      7.5  Indemnification.

       

      7.5.1  Subject
        to any express provisions of this Agreement to the contrary, from and after
        Closing, Seller hereby agrees to indemnify Purchaser, Purchaser’s Designee, and
        their respective trustees, directors, officers, employees, partners, members
        and
        affiliates (collectively, “Purchaser Indemnified Parties”), and to hold
        Purchaser Indemnified Parties harmless from and against, any and all Damages
        paid or incurred by Purchaser Indemnified Parties due to (i) any breach of
        any
        representation or warranty made by Seller in this Agreement, (ii) any breach
        of
        any covenant made by Seller in this Agreement, (iii) liabilities to any third
        party, including liabilities under the Leases, that are based upon any matter
        relating to the use, maintenance, operation or construction of the Property
        occurring prior to the Closing Date (except to the extent that Purchaser
        receives a credit therefor at Closing), and (iv) any liability of Seller,
        BNA or
        the Property under the Tax Deferral Agreement.

       

      7.5.2  Subject
        to any express provisions of this Agreement to the contrary, from and after
        Closing, Purchaser hereby agrees to indemnify Seller and its trustees,
        directors, officers and employees, partners, members and affiliates
        (collectively, “Seller Indemnified Parties”), and to hold Seller Indemnified
        Parties harmless from and against, any and all Damages paid or incurred by
        Seller Indemnified Parties due to (i) any breach of any representation or
        warranty made by Purchaser or Purchaser’s Designee in this Agreement, (ii) any
        breach of any covenant made by Purchaser or Purchaser’s Designee in this
        Agreement, (iii) any obligations with respect to which Purchaser receives
        a
        credit at Closing, to the extent of such credit, and (iv) liabilities to
        any
        third party, including liabilities under the Leases, that are incurred by
        any
        Seller Indemnified Party based upon any matter relating to the use, maintenance,
        operation or construction of the Property occurring on or after the Closing
        Date.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      7.5.3  The
        obligations of Seller under Section 7.5.1 shall not extend to (i) any
        Damages arising out of the alleged presence at, or release or disposal from
        the
        Property of any Hazardous Substance, or the alleged violation of any
        Environmental Laws, (ii) any Damages arising out of a violation of any
        Legal Requirement with respect to the physical condition, maintenance or
        improvement of the Property (including zoning and building codes and the
        Americans with Disabilities Act) which exists on or before the Closing Date,
        or
        (iii) any Damages arising out of the state of the physical condition,
        maintenance or improvement of the Property on or before the Closing Date,
        except
        (in the case of this clause (iii) only) Damages for the death of or injury
        to
        third parties, or damage to property other than the Property. The obligations
        of
        Seller under Section 7.5.1 (except with respect to the Tax Deferral
        Agreement) and of Purchaser under Section 7.5.2 shall not extend to (a) any
        consequential or punitive damages, (b) any loss or diminution of value in
        the Property (except in the case of a breach of a representation or warranty
        by
        Seller), or (c) any Damages that are not payable to third parties (except
        in the case of a breach of a representation or warranty by Seller).

       

      7.5.4  Notwithstanding
        anything to the contrary in this Agreement, Seller’s liability under
        Section 7.5.1 shall not exceed, in the aggregate together with Seller’s
        liability under Section 7.5.1 of the Adjacent Agreement, an amount equal
        to Five
        Million Dollars ($5,000,000.00), except for liability based upon actual fraud
        on
        the part of Seller. The foregoing limitations shall not be applicable to
        Seller’s indemnity obligations with respect to the Tax Deferral
        Agreement.

       

      7.5.5  Whenever
        either party shall learn through the filing of a claim or the commencement
        of a
        proceeding or otherwise of the existence of any liability for which the other
        party is or may be responsible under this Section 7.5, the party learning
        of
        such liability shall notify the other party promptly and furnish such copies
        of
        documents (and make originals thereof available) and such other information
        as
        such party may have that may be used or useful in the defense of such claims.
        The indemnified party shall afford the indemnifying party full opportunity
        to
        defend such claims, using counsel reasonably acceptable to the indemnified
        party, in the name of the indemnified party and generally shall cooperate
        with
        the indemnifying party in the defense of such claim, provided that no such
        matter shall be settled without the prior written consent of the indemnified
        party.

       

      7.5.6  This
        Section 7.5 shall survive Closing indefinitely, except that Seller’s
        indemnification of Purchaser pursuant to Section 7.5.1 shall terminate on
        the
        date that is one (1) year after the Closing Date. From and after Closing,
        the
        indemnification provisions in this Section 7.5 shall be the exclusive remedies
        of Seller and Purchaser in connection with any of the matters described in
        this
        Section 7.5 and the transaction described in this Agreement, and each party
        hereby waives and releases and other rights or remedies it may have under
        applicable law or at equity in connection therewith. The foregoing limitations
        shall not be applicable to Seller’s indemnity obligations with respect to the
        Tax Deferral Agreement, which shall survive Closing without limitation as
        to
        time.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      7.6  Survival.

       

      7.6.1  Except
        where this Agreement expressly provides for a longer period, the
        representations, warranties, covenants and indemnities of Seller and Purchaser
        set forth in this Agreement shall survive Closing until the date that is
        one (1)
        year after the Closing Date, and any action on any such representation,
        warranty, covenant or indemnity must be instituted on or before such
        date.

       

      7.6.2  Notwithstanding
        any other provision of this Agreement, if at or prior to Closing Purchaser
        obtains actual knowledge that any representation or warranty of Seller under
        this Agreement (as the same is modified pursuant to Section 5.7) is inaccurate
        in any respect, but nonetheless proceeds to Closing, Purchaser shall be deemed
        to have waived any right to make a claim arising out of such
        inaccuracy.

       

      ARTICLE
        8.  
        ESCROW, DEFAULT, REMEDIES

       

      8.1  Escrow
        Terms.

       

      8.1.1  Escrow
        Agent shall promptly give notice to Purchaser and Seller upon its receipt
        of any
        portion of the Deposit from Purchaser in accordance with this Agreement.
        Escrow
        Agent shall invest the Deposit (if in cash) in overnight repurchase obligations
        secured by United States obligations through such bank as Escrow Agent may
        elect
        and shall be approved by Purchaser and Seller. Escrow Agent shall not be
        liable
        for any loss of such investment (unless due to Escrow Agent’s gross negligence
        or willful misconduct). All interest on the Deposit shall be treated by Escrow
        Agent for income tax purposes as earned by Purchaser, and Purchaser shall
        provide its tax identification number to Escrow Agent for this
        purpose.

       

      8.1.2  Escrow
        Agent shall deliver the Deposit to Seller or to Purchaser, as the case may
        be,
        under the following conditions:

       

      8.1.2.1  At
        Closing, the Deposit shall be delivered to Seller (if in cash) or Purchaser
        (if
        a Letter of Credit) upon receipt by Escrow Agent of a statement executed
        by
        Seller and Purchaser that the Deposit may be so released; or

       

      8.1.2.2  The
        Deposit shall be delivered to Seller following receipt by Escrow Agent of
        written demand therefor from Seller, stating that Purchaser has defaulted
        in the
        performance of its obligations under this Agreement and specifying the Section
        of this Agreement which entitles Seller to receive the Deposit, but only
        if
        Purchaser shall not have given written notice of objection in accordance
        with
        Section 8.1.3; or

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      8.1.2.3  The
        Deposit shall be delivered to Purchaser following receipt by Escrow Agent
        of
        written demand therefor from Purchaser stating that Seller has defaulted
        in the
        performance of its obligations under this Agreement or that this Agreement
        was
        terminated under circumstances entitling Purchaser to the return of the Deposit,
        and specifying the Section of this Agreement which entitles Purchaser to
        the
        return of the Deposit, but only if Seller shall not have given written notice
        of
        objection in accordance with Section 8.1.3; or

       

      8.1.2.4  The
        Deposit shall be delivered as directed by joint written instructions of Seller
        and Purchaser.

       

      8.1.3  Upon
        the
        filing of a written demand for the Deposit by Seller or Purchaser pursuant
        to
        Section 8.1.2.2 or 8.1.2.3, Escrow Agent shall promptly give notice thereof
        (including a copy of such demand) to the other party. The other party shall
        have
        the right to object to the delivery of the Deposit, by giving notice of such
        objection to Escrow Agent at any time within five (5) business days after
        such
        party’s receipt of notice from Escrow Agent, but not thereafter. Failure to
        deliver such objection notice within such period shall be deemed to be a
        waiver
        of such party’s right to object to Escrow Agent’s compliance with such demand.
        Such objection notice shall set forth the basis for objecting to the delivery
        of
        the Deposit. Upon receipt of such notice of objection, Escrow Agent shall
        promptly give a copy of such notice to the party who filed the written demand.
        The foregoing five (5) business day period does not constitute a cure period
        in
        which either Seller or Purchaser, as the case may be, shall be required to
        accept tender of cure of any default under this Agreement. If the Deposit
        is in
        the form of the Letter of Credit, then Escrow Agent shall draw upon the same
        prior to the release of the Deposit to Seller, and Seller and Purchaser hereby
        irrevocably direct Escrow Agent to effectuate such draw.

       

      8.1.4  If
        Escrow
        Agent shall have received the notice of objection provided for in Section
        8.1.3
        within the time therein prescribed, Escrow Agent shall continue to hold the
        Deposit until (i) Escrow Agent receives written notice from Seller and
        Purchaser directing the disbursement of the Deposit, in which case Escrow
        Agent
        shall then disburse the Deposit in accordance with said direction, or
        (ii) litigation is commenced between Seller and Purchaser, in which case
        Escrow Agent shall deposit the Deposit with the clerk of the court in which
        said
        litigation is pending, or (iii) Escrow Agent takes such affirmative steps
        as Escrow Agent may elect, at Escrow Agent’s option, in order to terminate
        Escrow Agent’s duties hereunder (but in no event disbursing the Deposit to
        either Seller or Purchaser), including depositing the Deposit in court and
        commencing an action for interpleader, the costs thereof to be borne by
        whichever of Seller or Purchaser is the losing party. If
        the
        Deposit is in the form of the Letter of Credit, then Escrow Agent shall draw
        upon the same prior to the delivery of the Deposit to the clerk of court,
        and
        Seller and Purchaser hereby irrevocably direct Escrow Agent to effectuate
        such
        draw. Seller and Purchaser shall execute such documents as may be necessary
        to
        cause Escrow Agent to effectuate such draw.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      8.1.5  Escrow
        Agent may rely and act upon any instrument or other writing reasonably believed
        by Escrow Agent to be genuine and purporting to be signed and presented by
        any
        person or persons purporting to have authority to act on behalf of Seller
        or
        Purchaser, as the case may be, and shall not be liable in connection with
        the
        performance of any duties imposed upon Escrow Agent by the provisions of
        this
        Agreement, except for Escrow Agent’s own gross negligence, willful misconduct or
        default. Escrow Agent shall have no duties or responsibilities except those
        set
        forth herein. Escrow Agent shall not be bound by any modification or termination
        of this Agreement unless the same is in writing and signed by Purchaser and
        Seller, and, if Escrow Agent’s duties hereunder are affected, unless Escrow
        Agent shall have given prior written consent thereto. Escrow Agent shall
        be
        reimbursed by Seller and Purchaser for any expenses (including reasonable
        legal
        fees and disbursements of outside counsel, including all of Escrow Agent’s fees
        and expenses with respect to any interpleader action pursuant to Section
        8.1.4)
        incurred in connection with this Agreement, and such liability shall be joint
        and several; provided that, as between Purchaser and Seller, the prevailing
        party in any dispute over the Deposit shall be entitled to reimbursement
        of any
        such expenses paid to Escrow Agent. In the event that Escrow Agent shall
        be
        uncertain as to Escrow Agent’s duties or rights hereunder, or shall receive
        instructions from Purchaser or Seller that, in Escrow Agent’s opinion, are in
        conflict with any of the provisions hereof, Escrow Agent shall be entitled
        to
        continue to hold the Deposit pursuant to Section 8.1.4, and may decline to
        take any other action.

       

      8.1.6  Escrow
        Agent shall have the right at any time to resign upon ten (10) business
        days prior notice to Seller and Purchaser. Seller and Purchaser shall jointly
        select a successor Escrow Agent and shall notify Escrow Agent of the name
        and
        address of such successor Escrow Agent within ten (10) business days after
        receipt of notice from Escrow Agent of its intent to resign. If Escrow Agent
        has
        not received notice of the name and address of such successor Escrow Agent
        within such period, Escrow Agent shall have the right to select on behalf
        of
        Seller and Purchaser a bank or trust company to act as its successor hereunder.
        At any time after the ten (10) business day period, Escrow Agent shall have
        the
        right to deliver the Deposit to any successor selected hereunder, provided
        such
        successor shall execute and deliver to Seller and Purchaser an assumption
        agreement whereby it assumes all of Escrow Agent’s obligations hereunder. Upon
        the delivery of all such amounts and such assumption agreement, the successor
        shall become the Escrow Agent for all purposes under this Section 8.1 and
        shall
        have all of the rights and obligations of the Escrow Agent under this Section
        8.1, and the resigning Escrow Agent shall have no further responsibilities
        or
        obligations hereunder.

       

      8.1.7  If
        the
        Deposit is in the form of the Letter of Credit, then not later than the date
        that is thirty (30) days prior to the expiration of such Letter of Credit,
        Purchaser shall cause such Letter of Credit to be extended or replaced with
        another Letter of Credit that satisfies the requirements of this Agreement.
        If
        Purchaser fails to so extend or replace such Letter of Credit by such date,
        then
        Escrow Agent shall draw upon the same and hold the proceeds of such draw
        as the
        Deposit hereunder, and Seller and Purchaser hereby irrevocably direct Escrow
        Agent to effectuate such draw. Seller and Purchaser shall execute such documents
        as may be necessary to cause Escrow Agent to effectuate such draw. If
        either
        party disputes the release of the Deposit to the other pursuant to Section
        8.1.3, then if the Deposit is in the form of the Letter of Credit, Escrow
        Agent
        is hereby irrevocably directed to draw upon the Letter of Credit and hold
        the
        proceeds of such draw as the Deposit.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      8.2  Purchaser’s
        Default.
        If
        Purchaser defaults in its obligation to proceed to Closing in accordance
        with
        this Agreement, or if any condition set forth in Sections 6.3.1 through
        6.3.4 is not satisfied and Seller elects not to proceed to Closing, and if
        such
        default is not cured and/or such condition is not satisfied within fifteen
        (15)
        days after Seller has given Purchaser written notice of the same, then Seller
        shall have the right to terminate this Agreement by written notice to Purchaser,
        and upon such termination Escrow Agent shall, subject to Sections 8.1.3 and
        8.1.4, pay the Deposit to Seller. In addition, if Seller, on or before the
        date
        that is three (3) years after the date on which this Agreement terminates
        pursuant to this Section 8.2 (“Outside Date”), sells the Property to a third
        party purchaser (“Successor Purchaser”) for a gross purchase price that is less
        than the Purchase Price, then not later than thirty (30) days following receipt
        by Purchaser of the documentation provided by Seller in accordance with this
        Section 8.2, Purchaser shall pay to Seller an amount (“Sales Price Damages”)
        equal to the difference between the Purchase Price and the gross purchase
        price
        paid by the Successor Purchaser. Seller shall provide Purchaser with correct
        and
        complete copies of all documentation reasonably requested by Purchaser in
        connection with the determination of the Sales Price Damages. If Seller also
        sells the Adjacent Property on or before the Outside Date then the “Sales Price
        Damages” collectively payable by Purchaser and Adjacent Purchaser under this
        Agreement and the Adjacent Agreement shall be calculated on an aggregate
        basis.
        In no event shall the Sale Price Damages under this Agreement and the Adjacent
        Agreement exceed in the aggregate $11,000,000. The amount of the Deposit
        plus
        the amount, if any, of the Sales Price Damages, shall be full and complete
        liquidated damages, and the exclusive and sole right and remedy of Seller,
        and
        neither party shall have any further obligations or liabilities to the other
        party under this Agreement, except for obligations that expressly survive
        termination of this Agreement. Purchaser acknowledges that Seller’s actual
        damages caused by Purchaser’s default in its obligation to proceed to Closing
        would be difficult to determine precisely and that the amount of the Deposit,
        together with the amount, if any, of the Sales Price Damages, as liquidated
        damages, is a fair and reasonable approximation. Seller hereby waives any
        right
        to recover damages (whether actual, consequential, punitive or other) as
        a
        result of Purchaser’s default in its obligation to proceed to Closing in
        accordance with this Agreement or as a result of any conditions set forth
        in
        Sections 6.3.1 through 6.3.4 not being satisfied, except for the damages
        described in this Section 8.2. This Section 8.2 shall survive any
        termination of this Agreement.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      8.3  Seller’s
        Default.
        If
        Seller defaults in its obligation to proceed to Closing in accordance with
        this
        Agreement, or if any condition set forth in Section 6.1.1, 6.1.2 or 6.1.4
        is not
        satisfied and Purchaser elects not to proceed to Closing, and if such default
        is
        not cured and/or such condition is not satisfied within fifteen (15) days
        after
        Purchaser has given Seller written notice of the same, then Purchaser shall
        be
        entitled, as its sole remedy, to either (i) specific performance of this
        Agreement, provided that any action for specific performance must be initiated
        no later than sixty (60) days after the date that Closing is otherwise required
        to occur under this Agreement, or (ii) terminate this Agreement by written
        notice to Seller, and upon such termination Escrow Agent shall, subject to
        Sections 8.1.3 and 8.1.4, return the Deposit to Purchaser and neither party
        shall have any further obligations or liabilities to the other party under
        this
        Agreement, except for obligations that expressly survive termination of this
        Agreement, provided that if specific performance is not available to Purchaser
        due to an intentional act of Seller, then in addition to terminating this
        Agreement, Purchaser shall be entitled to reimbursement by Seller of Purchaser’s
        out-of-pocket costs actually expended in connection with the transaction
        contemplated by this Agreement in an aggregate amount not to exceed the amount
        of the Deposit. Purchaser hereby waives any right to recover damages (whether
        actual, consequential, punitive or other) as a result of Seller’s default in its
        obligation to proceed to Closing in accordance with this Agreement or as
        a
        result of any conditions set forth in Sections 6.1.1, 6.1.2 or 6.1.4 not
        being
        satisfied, except as expressly set forth in this Section 8.3. This Section
        8.3 shall survive any termination of this Agreement.

       

      8.4  District
        Agreement. 

       

      8.4.1  On
        the
        Contract Date, Crystal City Seller and Crystal City Purchaser are executing
        the
        Crystal City Agreement for the sale by the Crystal City Seller to Crystal
        City
        Purchaser of the Crystal City Property. This Agreement and the Crystal City
        Agreement shall be subject to the provisions of the Exchange
        Agreement.

       

      8.4.2  Any
        default by Crystal City Purchaser under the Crystal City Agreement shall
        constitute a default by Seller under this Agreement. Any default by the Crystal
        City Seller under the Crystal City Agreement shall constitute a default by
        Purchaser under this Agreement.

       

      8.5  Adjacent
        Agreement.
        Closing
        on the sale of the Property pursuant to this Agreement and closing on the
        sale
        of the Adjacent Property pursuant to the Adjacent Agreement shall occur
        concurrently. In no event shall Seller be obligated to sell the Property
        nor
        shall Purchaser be required to purchase the Property without the concurrent
        Closing of the sale or purchase, respectively, of the Adjacent Property.
        Any
        default by Adjacent Purchaser under the Adjacent Agreement shall constitute
        a
        default by Purchaser under this Agreement. Any default by Seller under the
        Adjacent Agreement shall constitute a default by Seller under this Agreement.
        If
        the Adjacent Agreement is terminated for any reason prior to Closing, this
        Agreement shall terminate automatically, the Deposit shall be delivered to
        the
        party entitled to receive the Deposit (as defined under the Adjacent Agreement)
        under the Adjacent Agreement, and neither party shall have any further
        obligations or liabilities to the other party under this Agreement, except
        for
        obligations that expressly survive termination of this Agreement.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      ARTICLE
        9.  
        CASUALTY AND CONDEMNATION

       

      9.1  Notice
        to Purchaser.
        Seller
        shall give Purchaser prompt written notice of (i) any pending or threatened
        condemnation affecting the Property prior to Closing, upon becoming aware
        of the
        same, and (ii) any fire or other casualty occurring prior to Closing that
        affects the Property and that is reasonably estimated by Seller, acting
        reasonably and in good faith, to cost more than $10,000.00 to
        repair.

       

      9.2  Minor
        Condemnation. If,
        prior
        to Closing, a proceeding for condemnation is commenced against all or any
        portion of Property, and such proceeding does not materially adversely affect
        the use, occupancy or redevelopment of the Property, as reasonably determined
        by
        Seller and Purchaser, each acting reasonably and in good faith, then this
        Agreement shall continue in full force and effect and the Purchase Price
        shall
        not be reduced, but Purchaser shall be entitled to an assignment of all
        condemnation awards payable to Seller (other than any portion of such awards
        in
        respect of income lost prior to Closing or expended by or on behalf of Seller
        prior to Closing to restore the Property), and Seller shall have no obligation
        to repair or restore the Property.

       

      9.3  Major
        Condemnation.
        If,
        prior to Closing, a proceeding for condemnation is commenced against all
        or any
        portion of Property, and such proceeding is not covered by Section 9.2, then
        Purchaser shall have the right, upon notice in writing to Seller delivered
        within ten (10) days after Seller gives Purchaser notice of such condemnation,
        to terminate this Agreement, whereupon this Agreement shall terminate, Escrow
        Agent shall return the Deposit to Purchaser and neither party to this Agreement
        shall thereafter have any further rights or liabilities under this Agreement
        other than those that expressly survive termination of this Agreement. If
        Purchaser does not timely elect to terminate this Agreement, then this Agreement
        shall continue in full force and effect and the Purchase Price shall not
        be
        reduced, but Purchaser shall be entitled to an assignment of all condemnation
        awards payable to Seller (other than any portion of such awards in respect
        of
        income lost prior to Closing or expended by or on behalf of Seller prior
        to
        Closing to restore the Property), and Seller shall have no obligation to
        repair
        or restore the Property.

       

      9.4  Casualty.
        If,
        prior
        to Closing, the Property is damaged by fire or other casualty, then this
        Agreement shall continue in full force and effect and the Purchase Price
        shall
        not be reduced, but Purchaser shall be entitled to an assignment of all fire
        or
        other casualty insurance proceeds payable to Seller (other than any portion
        of
        such proceeds in respect of income lost prior to Closing or expended by or
        on
        behalf of Seller prior to Closing to restore the Property), plus the amount
        of
        any deductible, and Seller shall have no obligation to repair or restore
        the
        Property. Notwithstanding the foregoing, Seller shall be obligated to undertake
        such repair and restoration as may be required (i) under the terms of the
        Leases, and (ii) in any event, to safeguard the Property.

       

      9.5  Insurance.
        Prior to
        Closing, Seller shall maintain, at its cost, “broad form/special perils”
insurance with respect to the Improvements in an amount equal to 100% of
        the
        replacement cost thereof.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      ARTICLE
        10.  PRORATIONS

       

      10.1  Prorations
        Generally.
        Seller
        and Purchaser shall receive debits and credits against the Purchase Price
        pursuant to this Article 10. In the case of any adjustment to be made at
        Closing, such adjustment shall be set forth on a settlement statement
        (“Settlement Statement”) executed by Seller and Purchaser, and the portion of
        the Purchase Price payable pursuant to Section 2.2.2.3 shall be increased
        or
        decreased to reflect such adjustment. In the case of any adjustment to be
        made
        after Closing, Purchaser and Seller shall make such adjustment by payment
        of
        immediately available funds to the other party within five (5) days of the
        date
        such adjustment is determined.

       

      10.2  Governmental
        Charges. Real
        estate taxes, personal property taxes, and any other governmental assessments
        for the tax year(s) in which Closing occurs shall be apportioned between
        Seller
        and Purchaser as of the Apportionment Time.

       

      10.3  Rents
        under Leases.
        All
        rents and other charges (including base rent, percentage rent, expense
        reimbursement rent and any additional rent) under Leases (collectively, “Rents”)
        shall be apportioned in accordance with the following provisions:

       

      10.3.1  All
        Rents
        which were earned and attributable to the period prior to the Closing Date
        shall
        be retained by Seller to the extent that such Rents have been collected prior
        to
        the Closing Date. Rents earned and attributable to the period beginning on
        the
        Closing Date and thereafter will be paid to Purchaser directly by the tenants
        or
        licensees, or if received by Seller prior to Closing shall be credited to
        Purchaser at Closing.

       

      10.3.2  All
        Rents
        received on or after the Closing Date by Purchaser in respect of any Lease
        shall
        be applied first to sums due under such Lease attributable to the period
        beginning on the Closing Date through the last day of the month in which
        such
        sums were received. Thereafter, any remaining sums shall be promptly paid
        to
        Seller to the extent of any Rent owing to Seller under the applicable Lease
        for
        periods prior to the Closing Date. All Rents received by Seller after Closing,
        whether attributable to the period prior to or after the Closing Date, shall
        be
        deemed to be held in trust by Seller for Purchaser and shall be promptly
        delivered to Purchaser by Seller for application as provided in this
        Section.

       

      10.3.3  Any
        customary and actual, direct out of pocket costs incurred by Purchaser in
        collection of delinquent Rents shall be deducted by Purchaser prior to the
        payment to Seller on account of delinquent Rents. Purchaser shall not modify
        any
        Lease in such a way to affect the amounts of Rents that may be due to Seller.
        Seller shall have the right to contact tenants to request payment of delinquent
        rentals after the Closing Date and to institute legal proceedings, at Seller’s
        sole expense, to collect and retain such delinquent Rents, but not to evict
        such
        tenants.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      10.3.4  Reconciliations
        of taxes, insurance charges and other expenses owed by tenants and licensees
        under Leases for the calendar year (or fiscal year if different from the
        calendar year) in which Closing occurs shall be prepared by Purchaser with
        the
        cooperation of Seller within one hundred twenty (120) days following the
        end of
        such year in accordance with the requirements set forth in the Leases and
        as
        provided in this Section 10.3.4. For those Leases in which tenant pays a
        proportionate share of taxes, insurance charges or other expenses over a
        base
        year amount or expense stop, the proration of the amount received from such
        tenant over such base year amount or expense stop shall be calculated based
        on
        the total amount of such expenses for the Property incurred by each of Seller
        and Purchaser reduced by the base year amount allocated evenly for the portion
        of the year each owns the Property. The base year amount will be prorated
        between the parties based on the number of days each party owned the Property
        during such year. For Leases which do not have a base year amount or expense
        stop, the proration between the parties of income received from tenants from
        reconciliations of expenses under the Leases shall be calculated based on
        the
        expenses actually incurred by each party for such year and each party’s period
        of ownership of the Property.

       

      10.3.5  Purchaser
        shall receive a credit for any cash security deposit actually posted by the
        tenant under any Lease, except to the extent that such security deposit has
        been
        applied by Seller prior to the Closing Date in accordance with the terms
        of the
        applicable Lease. Seller and Purchaser shall cooperate to transfer to Purchaser
        any security deposit posted by the tenant under any Lease that is in a form
        other than cash.

       

      10.4  Contracts.
        All
        amounts payable under the Contracts shall be apportioned between Seller and
        Purchaser as of the Apportionment Time.

       

      10.5  Utilities.
        Water,
        sewer, fuel, electricity, gas and other utilities shall be apportioned between
        Seller and Purchaser as of the Apportionment Time.

       

      10.6  Deposits.
        Seller
        shall receive a credit for all deposits made by or on behalf of Seller as
        of the
        Apportionment Time as security under any Contract, utility, public service
        or
        other arrangement to the extent the same remains on deposit for the benefit
        of
        Purchaser.

       

      10.7  Permits.
        Seller
        shall receive a credit for prepaid fees for any permits that are assigned
        to
        Purchaser.

       

      10.8  Tax
        Appeals.

       

      10.8.1  If
        any
        appeal of any taxes or assessments is pending as of the Closing Date with
        respect to any tax period that has closed prior to the Closing Date, Seller
        shall be entitled to receive any rebate or credit resulting from such appeal,
        and shall pay all expenses of prosecuting such appeal.

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      10.8.2  If
        any
        appeal of any taxes or assessments is pending as of the Closing Date with
        respect to the period in which the Closing Date occurs (“Current Year Tax
        Appeal”), such taxes or assessments shall be re-prorated between Seller and
        Purchaser as of the Apportionment Time in accordance with the results of
        such
        Current Year Tax Appeal. Seller shall consider in good faith any request
        by
        Purchaser to initiate a Current Year Tax Appeal. Seller and Purchaser shall
        cooperate in the prosecution of each Current Year Tax Appeal. All third party
        costs and fees incurred in connection with any Current Year Tax Appeal,
        including legal fees and expenses, shall be paid by Seller to the extent
        due and
        payable prior to the Closing Date, and shall be paid by Purchaser to the
        extent
        due and payable on or after the Closing Date, but upon completion of the
        Current
        Year Tax Appeal, all such costs and fees shall be prorated between Purchaser
        and
        Seller in the same proportion as they bear re-prorated taxes and
        assessments.

       

      10.9  Transaction
        Taxes.
        Seller
        shall be responsible for its federal and state income, franchise and similar
        taxes applicable to the transactions contemplated by this Agreement. Purchaser
        shall be responsible for any bulk sales taxes, personal property sales taxes,
        and similar taxes applicable to the transactions contemplated by this
        Agreement.

       

      10.10  Disputes
        with Respect to Adjustments.
        If
        Seller and Purchaser, each acting reasonably and in good faith, cannot resolve
        any issue with respect to the adjustments described in this Article 10, they
        shall submit such issue for binding resolution by a nationally recognized
        accounting firm mutually acceptable to both parties (“Accounting Firm”). The
        parties shall bear equally all fees and expenses of the Accounting Firm in
        connection with the resolution of such issue, and each party shall bear its
        own
        legal, accounting and other fees and expenses incurred in connection with
        the
        resolution of the issue by the Accounting Firm. Such resolution shall be
        final
        and binding on the parties and judgment may be entered upon such resolution
        in
        any court having jurisdiction thereof. Seller and Purchaser agree that the
        proceeding described in this Section 10.10 shall be conducted in the District
        of
        Columbia.

       

      10.11  Interest
        on Amounts Owed.
        Any
        amount that is payable by Seller or Purchaser to the other pursuant to this
        Article 10 and not paid when due shall bear interest from the date due until
        paid at the rate of ten percent (10%) per annum.

       

      10.12  Survival.
        This
        Article 10 shall survive Closing.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      ARTICLE
        11.  MISCELLANEOUS

       

      11.1  Assignment.
        Neither
        Seller nor Purchaser shall assign this Agreement without the consent of the
        other. Notwithstanding the foregoing, without Seller’s consent, Purchaser shall
        have the right to assign the right to receive the Property at Closing to
        another
        Person (“Purchaser’s Designee”), subject to the following
        conditions:  (i) such Purchaser’s Designee is a direct or indirect
        wholly-owned subsidiary of Vornado; (ii) Purchaser shall give notice to
        Seller no later than ten (10) business days prior to the date set for
        Closing of the identity of Purchaser’s Designee; and (iii) such assignment
        shall not adversely affect any Exchange or delay or otherwise adversely affect
        Closing. Upon any such assignment, Purchaser’s Designee shall be deemed to have
        assumed for the benefit of Seller all obligations of Purchaser under this
        Agreement, the Access Agreement and the Confidentiality Agreement, but such
        assignment shall not relieve Purchaser of its obligations under this Agreement,
        the Access Agreement and the Confidentiality Agreement.

       

      11.2  Notices.
        Notices
        and other communications required or permitted under this Agreement shall
        be in
        writing and delivered by hand against receipt or sent by recognized overnight
        delivery service, by certified or registered mail, postage prepaid, with
        return
        receipt requested or by facsimile. All notices shall be addressed as
        follows:

       

      If
        to
        Purchaser:

       

      Vornado
        Realty L.P.

      888
        Seventh Avenue

      New
        York,
        New York 10019

      Attn:
        Joseph Macnow

      Phone:
        (212) 894-7066

      Fax:
        (212) 843-2198

       

      with
        a
        copy to:

       

      Gregory
        R. Redding, Esquire

      Vice
        President and Division Counsel

      Charles
        E. Smith Real Estate Services L.P.

      2345
        Crystal Drive, Suite 1000

      Arlington,
        Virginia 22202

      Phone:
        (703) 769-1840

      Fax:
        (703) 769-1301 

       

      and
        with
        a copy to: 

       

      Michael
        D. Goodwin, Esq.

      Arnold
        & Porter LLP

      555
        12th
        Street,
        N.W.

      Washington,
        D.C. 20004

      Phone:
        (202) 942-5558

      Fax:
        (202) 942-5999

       

      If
        to
        Seller:

       

      BNA
        Washington Inc.

       

      1231
        25th
        Street, NW

       

      Washington,
        DC 20037

      Attention:
        Eunice Bumgardner

      Phone:
        (202) 736-3916

      Fax:
        (202) 973-3707

       

      with
        a
        copy to:

       

      Robb
        Johnson

      Senior
        Vice President

      Staubach

      8484
        Westpark Drive, Suite 150

      McLean,
        Virginia 22102

      Phone:
        (703) 448-3555

      Fax:
        (703) 448-6685

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      and

       

      Jay
        Epstien, Esquire

      DLA
        Piper
        Rudnick Gray Cary US LLP

      1200
        19th
        Street,
        N.W.

      Washington,
        D.C. 20036

      Phone:
        (202) 861-3850

      Fax:
        (202) 689-7450

       

      If
        to
        Escrow Agent:

       

      Commercial
        Settlements, Inc.

      1015
        15th
        Street,
        N.W., Suite 300

      Washington,
        D.C. 20005

      Attn:
        David P. Nelson

      Phone:
        (202) 737-4747

      Fax:
        (202) 737-4108

       

      or
        to
        such other addresses as may be designated by a proper notice. Notices shall
        be
        deemed to be effective upon receipt (or refusal thereof) if personally
        delivered, sent by recognized overnight delivery service, or sent by certified
        or registered mail, postage prepaid, with return receipt requested, or upon
        electronically verified transmission, if such delivery is by
        facsimile.

       

      11.3  Waiver
        of Jury Trial; Jurisdiction.
        Seller
        and Purchaser each hereby waives any right to jury trial in the event any
        party
        files an action relating to this Agreement or to the transactions or obligations
        contemplated by this Agreement. Any action, suit or proceeding arising out
        of
        this Agreement or the transactions contemplated by this Agreement shall be
        brought exclusively in the United States District Court for the District
        of
        Columbia, and Seller and Purchaser agree that such courts are the most
        convenient forum for resolution of any such action and further agree to submit
        to the jurisdiction of such courts and waive any right to object to venue
        in
        such courts.

       

      11.4  Counterparts
        and Effectiveness.
        This
        Agreement may be executed in any number of counterparts which, when taken
        together, shall constitute a single binding instrument. Execution and delivery
        of this Agreement by facsimile shall be sufficient for all purposes and shall
        be
        binding on any Person who so executes.

       

      11.5  Brokerage.
        Seller
        represents to Purchaser that other than The Staubach Company - Northeast,
        Inc.
        (“Seller’s Broker”), no broker, finder or similar consultant has acted on its
        behalf in connection with this Agreement or the transaction contemplated
        by this
        Agreement. Purchaser represents to Seller that no broker, finder or similar
        consultant has acted on its behalf in connection with this Agreement or the
        transaction contemplated by this Agreement. At Closing, Seller shall pay
        to
        Seller’s Broker a commission pursuant to a separate agreement. Purchaser and
        Seller each shall indemnify and hold the other harmless from claims made
        by any
        broker, finder or similar consultant claiming through it for a commission,
        fee
        or compensation in connection with this Agreement or the transaction
        contemplated by this Agreement, and such indemnity shall survive Closing
        without
        limitation as to time. The indemnification obligations set forth in this
        Section 11.5 shall survive Closing or any termination of this
        Agreement.

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      11.6  Confidentiality.
        Purchaser and Seller shall each maintain as confidential any and all information
        and material obtained about the other which is furnished to it by the other
        in
        connection with this Agreement, and such obligation shall survive any
        termination of this Agreement and shall survive Closing for a period of one
        (1)
        year. Purchaser and Seller shall each maintain as confidential the terms
        of this
        Agreement and such obligation shall survive any termination of this Agreement,
        but shall terminate at Closing. Purchaser shall maintain as confidential
        any and
        all information and material about the Property which is furnished to it
        by or
        on behalf of Seller, and such obligation shall survive any termination of
        this
        Agreement but shall terminate at Closing. Confidential information shall
        not
        include information and material which (i) becomes generally available to
        the
        public other than as a result of a disclosure prohibited by this
        Section 11.6, (ii) is known to Purchaser or Seller, as the case may
        be, on a non-confidential basis, prior to its receipt of such information
        and
        material from the other party, or (iii) becomes available to Purchaser or
        Seller, as the case may be, on a non-confidential basis from a source other
        than
        the other party which is not prohibited from disclosing the same.
        Notwithstanding the foregoing, (i) each of Purchaser and Seller may
        disclose confidential information to its employees, agents or advisors, and
        to
        potential investors or lenders, in each case on a need-to-know basis after
        the
        recipients of the information have been informed of the confidential nature
        of
        such information and directed not to disclose such information except in
        accordance with this Section 11.6, (ii) each of Purchaser and Seller
        may disclose confidential information to the extent required by applicable
        law
        or the rules of any applicable securities exchange, and (iii) Purchaser and
        Seller, following prior notice to and consultation with the other, may disclose
        the transaction contemplated by this Agreement to the extent necessary to
        obtain
        consents or approvals contemplated by this Agreement.

       

      11.7  Bulk
        Sales Compliance. Seller
        and Purchaser acknowledge that they do not intend to comply with and have
        agreed
        to waive the provisions of any statutory bulk sale or similar requirements
        applicable to the transactions contemplated by this Agreement, and Seller
        and
        Purchaser agree to rely upon the adjustment provisions of this Agreement
        to
        address any matters that would otherwise be subject to such bulk sale
        requirements.

       

      11.8  Public
        Announcements. Prior
        to
        Closing, each party shall notify the other and provide the other with an
        opportunity to comment on any proposed form of press release or other written
        disclosure with respect to this Agreement or the transactions contemplated
        by
        this Agreement not less than twenty-four (24) hours prior to such proposed
        disclosure.

       

      11.9  Recordation.
        Neither
        Seller nor Purchaser shall record this Agreement or any notice of this Agreement
        in the land records of any jurisdiction.

       

      11.10  Time
        of Essence.
        Time is
        of the essence with respect to the performance of all obligations, and the
        exercise of all rights, of Seller and Purchaser under this
        Agreement.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      11.11  Rule
        Against Perpetuities.
        Notwithstanding any other provision in this Agreement, Closing shall occur,
        if
        at all, prior to the date that is twenty-one (21) years following the death
        of
        the survivor of George W. Bush and Laura Bush and the now living children
        of
        said persons.

       

      11.12  Like-Kind
        Exchanges.

       

      11.12.1  Notwithstanding
        anything contained herein to the contrary, Purchaser acknowledges
        that
        Seller may designate the Property as relinquished property to consummate
        a
        like-kind exchange or reverse like-kind exchange under Section 1031 of the
        Code
        (an “Exchange”) with respect to property that Seller will acquire either prior
        to or within one hundred eighty (180)
        days
        after Closing (the “Replacement Property”). In the event that Seller designates
        the Property as relinquished property to consummate an Exchange with respect
        to
        the Replacement Property through the use of a qualified intermediary
        (“Intermediary”) and/or an Exchange Accommodation Titleholder (“EAT”), Purchaser
        shall cooperate in structuring the transaction as an Exchange for the benefit
        of
        Seller and Purchaser agrees to render all required performance under this
        Agreement to either the Intermediary or the EAT (either the Intermediary
        or the
        EAT referred to herein as the “1031 Assignee”) to the extent reasonably directed
        by Seller and to accept performance of all of Seller’s obligations by the 1031
        Assignee. Purchaser agrees that performance by the 1031 Assignee will be
        treated
        as performance by Seller, and Seller agrees that Purchaser’s performance to the
        1031 Assignee will be treated as performance to Seller. No assignment of
        rights
        under this Agreement to a 1031 Assignee shall effect a release of Seller
        from
        obligations under this Agreement.

       

      11.12.2  Notwithstanding
        anything contained herein to the contrary, Seller acknowledges
        that
        Purchaser may designate the Property as replacement property to consummate
        an
        Exchange with respect to property that Seller will relinquish either prior
        to or
        within one hundred eighty (180) days after Closing (the “Relinquished
        Property”). In the event that Purchaser designates the Property as replacement
        property to consummate an Exchange with respect to the Relinquished Property
        through the use of a 1031 Assignee, Seller shall cooperate in structuring
        the
        transaction as an Exchange for the benefit of Purchaser and Seller agrees
        to
        render all required performance under this Agreement to such 1031 Assignee
        to
        the extent reasonably directed by Purchaser and to accept performance of
        all of
        Purchaser’s obligations by the 1031 Assignee. Seller agrees that performance by
        the 1031 Assignee will be treated as performance by Purchaser, and Purchaser
        agrees that Seller’s
        performance to the 1031 Assignee will be treated as performance to Purchaser.
        No
        assignment of rights under this Agreement to a 1031 Assignee shall effect
        a
        release of Purchaser from obligations under this Agreement.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      11.13  District
        of Columbia Provisions.

       

      11.13.1  The
        characteristic of the soil of the Land, as described by the Soil Conservation
        Service of the U.S. Department of Agriculture in the Soil Survey Book of
        the
        District of Columbia (area 11)
        published in July 1976, and as shown on the Soil Maps of the District of
        Columbia at
        the back
        of that publication, is Urban Land. For further information, Purchaser may
        contact a soil testing laboratory, the District of Columbia Department of
        Environmental Services or the Soil Conservation Service of the U.S. Department
        of Agriculture. The foregoing is set forth pursuant to requirements of the
        District of Columbia Code and is not intended, and shall not be construed
        as,
        limiting the conditions set forth herein with respect to Purchaser’s right to
        make investigations, tests and studies satisfactory to it.

       

      11.13.2  In
        accordance with the requirements of Section 3(g) of the District of Columbia
        Underground Storage Tank Management Act of 1990, as amended by the District
        of
        Columbia Underground Storage Tank Management Act of 1990 Amendment Act of
        1992
        (the “Act”), Seller has informed Purchaser, and hereby re-informs Purchaser,
        that Seller has no knowledge of the existence or removal, during Seller’s
        ownership of the Property, of any underground storage tanks at or from the
        Property. This disclosure notice was provided to Purchaser prior to entering
        into this Agreement.

       

      

       

      [Signatures
        on following page]

      
        
          -
            -

          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      IN
        WITNESS WHEREOF,
        Seller
        and Purchaser have caused this Agreement to be executed as of the Contract
        Date.

       

      SELLER:

       

      BNA
        Washington Inc., a Delaware corporation

       

      

      By:
        /s/Elizabeth Brown  

      Name:
        Elizabeth Brown

      Its:
        President, BNA Washington Inc.   

      

      

      By:
        /s/George G. Korphage   

      Name:
        George J. Korphage  

      Its:
        Chairman of the Board, BNA Washington Inc.   

      

       

      PURCHASER:

       

      CESC
        1229-1231 TRS Inc., a Delaware corporation

       

      By: Vornado
        Realty L.P., a Delaware  limited
        partnership, sole stockholder

       

      By: Vornado
        Realty Trust, a Maryland  real
        estate investment trust, its  general
        partner

       

      

      
         

        By:
          /s/Mitchell N. Schear

        Name:
          Mitchell N. Schear

        Its:
          President, CSCR   

      

       

      

      

      

      
        
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            -

          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      JOINDER
        OF ESCROW AGENT

       

      The
        undersigned is joining this Agreement to evidence its agreement to receive,
        hold
        and disburse the Deposit in accordance with the terms of the
        Agreement.

       

      Commonwealth
        Land Title Insurance Company

       

      

      By:   

      Name:   

      Its:   

      

      
        
          -
            -

          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      JOINDER
        OF CRYSTAL CITY SELLER

       

      The
        undersigned, jointly and severally, hereby guaranty the prompt and full payment
        to Seller of all amounts due and payable by Purchaser pursuant to
        Section 8.2 of the foregoing Agreement of Purchase and Sale. Such guaranty
        is absolute and unconditional, is a guaranty of payment and performance and
        not
        of collection, shall survive any termination of this Agreement. If at any
        time
        prior to the satisfaction or expiration of Purchaser’s obligations under Section
        8.2, the undersigned do not collectively own at least two of the buildings
        located at Crystal Mall (as defined in the Crystal City Agreement), the
        undersigned shall cause an affiliate of Vornado Realty, L.P., a Delaware
        limited
        partnership, with a net worth of at least $20,000,000 to guaranty the
        obligations guarantied by the undersigned hereunder.

       

      CESC
        Mall
        Land L.L.C., a Delaware limited liability company

       

      

       

      By:   

      Name:   

      Its:   

      

       

      CESC
        Mall
        L.L.C., a Virginia limited liability company

       

      

       

      By:   

      Name:   

      Its:   

       

      

       

      

      
        
          
            1402962_13.DOC

          

          
          

        

        
          
          

          
            

          

        

        
          
          

          
            

          

        

      

       

      Schedules
        and Exhibits

       

      

      Schedules

      

      3.5 Pending
        Actions

      3.10 Leases

      5.2.1 Title
        Commitment

      

      Exhibits

      

      A Form
        of
        Deed

      B Form
        of
        Bill of Sale

      C Form
        of
        Assignment

      D Form
        of
        Estoppel

      E Form
        of
        Letter of Credit

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}]]