Document:

EX-10.4

 

CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT.
EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN
ASTERISK [*], HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION.

Exhibit 10.4

SUBSERVICING AGREEMENT

dated as of March 2, 2007

between

PALISADES COLLECTION, L.L.C.,

as the Servicer,

and

[*]

as the Subservicer

 

 

SUBSERVICING AGREEMENT

     THIS SUBSERVICING AGREEMENT is entered into effective as of March 2, 2007 (as amended,
supplemented or otherwise modified from time to time, the “Subservicing Agreement”),
between PALISADES COLLECTION, L.L.C., a Delaware limited liability company (together with its
successors and assigns, the “Servicer”), and [*] (the “Subservicer”).

R E C I T A L S

          1. The Servicer has entered into a servicing agreement, of even date herewith (as amended,
supplemented or modified from time to time, the “Servicing Agreement”), with Palisades
Acquisition XVI, LLC (the “Borrower”) and BMO
Capital Markets Corp. (“BMO CM”), pursuant to which, on the terms
and subject to the conditions set forth therein, the Servicer has agreed to service, among other
receivables, the Receivables for the benefit of the Borrower.

          2. The Borrower
and BMO CM, as collateral agent for the benefit of certain secured
parties (the “Collateral Agent”) pursuant to the Receivables Financing Agreement, have
entered into a security agreement, of even date herewith, pursuant to which the Borrower has
granted to the Collateral Agent, security interest in, among other things, collections on the
Receivables.

          3. The Servicer has requested Subservicer to undertake certain collecting and servicing
responsibilities in respect of the Receivables, and the Subservicer is willing to undertake such
responsibilities and accept such bailment, acknowledging that such subservicing activities are
undertaken for the benefit of both the Borrower and, for as long as a security interest is
outstanding, the Collateral Agent, for the benefit of secured parties.

     NOW, THEREFORE, in consideration of the mutual agreements herein contained, the Servicer and
the Subservicer hereby agree as follows:

ARTICLE 1.

DEFINITIONS

     Section 1.01 Definitions.

     Whenever used in this Subservicing Agreement, the following words and phrases, unless the
context otherwise requires, shall have the meanings specified in this Article (such meanings to be
equally applicable to both the singular and plural forms of the terms defined and to all genders):

     “Administrator”
means BMO CM

     in such capacity under the Receivables Financing Agreement.

 

 

     “Accepted Servicing Practices” means those accepted, customary and prudent servicing
practices in the industry for the same type of assets as the Receivables and designed in a manner
to maximize the value of the Receivables.

     “Bankruptcy Code” means Title 11 of the United States Code, as amended.

     “Borrower” has the meaning set forth in the first Recital.

     “Business Day” means any day on which commercial banks in Chicago, Illinois, New
Jersey or New York City are not authorized or required to be closed.

     “Collateral” means all property of the Borrower wherever located, whether now or
hereafter existing, owned, licensed, leased, consigned, arising or acquired, including, without
limitation, all of the Borrower’s right, title and interest in and to all Receivables and other
Receivable Assets; all funds on deposit in the Collection Account to the extent constituting
payments or other proceeds of the Receivables, together with all certificates and instruments, if
any, from time to time evidencing the foregoing, and all investments made with such funds, all
claims thereunder or in connection therewith, and interest, dividends, moneys, instruments,
securities and other property from time to time received or receivable in respect of any or all of
the foregoing; and all products and proceeds (including, without limitation, insurance proceeds and
Liquidation Proceeds) of, and additions, improvements and accessions to, and books and records
describing or used in connection with, all and any of the property described above.

     “Collateral Agent” has the meaning set forth in the second Recital.

     “Collection Account” means that certain bank account numbered 379-573-9 maintained
with the Collection Account Bank, which is identified as the “Palisades Acquisition XVI, LLC
Collection Account.”

     “Collection Account Bank” means Harris N.A. or any replacement therefor pursuant to
the Receivables Financing Agreement.

     “Collections” means, with respect to any Receivable, all funds (net of any Liquidation
Expenses) (a) received by the Subservicer from or on behalf of the related Obligors in payment of
any amounts owed (including, without limitation, principal, finance charges, interest and all other
amounts and charges) in respect of such Receivable from and after the Cutoff Date or (b) applied to
such amounts owed by such Obligors (including, without limitation, through the liquidation of
Collateral or insurance payments or proceeds on account of any casualty loss with respect to any
collateral or property of the Obligor or any other party directly or indirectly liable for payment
of such Receivable and available to be applied thereon).

     “Collection Period” means with respect to a Distribution Date, the period from and
including the first day of the month preceding the month in which such Distribution Date occurs to
and including the last day of the month preceding the month of such Distribution Date. Each
Collection Period shall consist of a calendar month.

     “Cutoff Date” mean the date set forth in the Purchase Agreement.

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     “Exempted Receivables” means Judgment Asset Receivables and Paying Receivables.

     “Judgment Asset Receivables” means each Receivable (a) that is in active litigation
or (b) for which a judgment has been rendered within the preceding 120 days or (c) that is in post
judgment enforcement or (d) at any time prior the second anniversary of this Subservicing
Agreement, that has been identified by the Subservicer as subject to litigation; provided, however,
in the case of a sale by the Borrower of Receivables that are judgments that are non-liquidating
and have no post-judgment enforcement activity occurring or imminent, such Receivables shall not be
deemed to be Judgment Asset Receivables.

     “Liquidation Expenses” means all court costs, arbitration fees and costs and
reasonable out-of-pocket expenses that are incurred by the Subservicer or a vendor in connection
with the collection or liquidation of any Receivable or related collateral, if any, such expenses
including, without limitation, legal and arbitration fees and expenses (including, but not limited
to, service of process fees), any file fees and foreclosure or repossession expenses and any
unreimbursed amount expended by the Subservicer or any vendor pursuant to Section 3.02 (to
the extent such amount is reimbursable under the terms of Section 3.02) respecting the
related Receivable.

     “Liquidation Proceeds” means cash received in connection with the collection or
liquidation of Receivables or related collateral, if any, whether through sale or otherwise.

     “List of Receivables” means each of the list of Receivables attached as Schedule 2
hereto, as the same may be amended, supplemented or replaced from time to time.

     “Material Adverse Effect” means with respect to any event or circumstance, a material
adverse effect on: (a) the business, assets, financial condition or operations of Subservicer; (b)
the ability of any of the Subservicer to perform its obligations under the Subservicing Agreement;
(c) the validity, enforceability or collectibility of this Subservicing Agreement; (d) the status,
existence, perfection or priority of (i) the Borrower’s ownership interest, or the Collateral
Agent’s security interest, in the Receivables or the other Collateral or (e) the validity,
enforceability or the level of collectibility of a material amount of the Receivables.

     “Obligor” means a Person obligated to make payments with respect to a Receivable.

     “Officer’s Certificate” means a certificate signed by the Chief Executive Officer, the
President, the Chief Financial Officer, a Manager or any Vice President of the Subservicer, as the
case may be, and delivered to the Servicer , as required by this Subservicing Agreement.

     “Paying Receivables” means each Receivable, the Obligor of which (a) is currently
paying under a payment plan or (b) accounts that have active garnishments, attachments, lien
proceedings or other involuntary, judicial executions or (c) has committed to enter into a payment
plan or to remit the full or agreed settlement amount thereof within the next 60 days.

     “Person” means an individual, partnership, corporation (including a business trust),
limited liability company, joint stock company, trust, unincorporated association, joint venture,
government or any agency or political subdivision thereof or any other entity.

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     “Purchase Agreement” means the purchase and sale agreement, dated as of February 5,
2007, between Great Seneca Financial Corporation, Platinum Financial Services Corporation, Monarch
Capital Corporation, Colonial Credit Corporation, Centurion Capital Corporation, Sage Financial
Limited and Hawker Financial Corporation and Palisades Acquisition XV, LLC.

     “Receivable” means those credit card and other consumer installment credit agreement
accounts and receivables (including, without limitation, judgments) included on the List of
Receivables.

     “Receivables Assets” means the assets consisting of (i) the Receivables, including
all interest, finance charges, principal and other amounts received on or with respect to the
Receivables (other than payments received on the Receivables before the applicable Cut-off Date);
(ii) the Receivable Files; (iii) collateral, if any, that secures a Receivable; (iv) all rights to
insurance proceeds and Liquidation Proceeds; and (v) the proceeds of the foregoing and the rights
to enforce the foregoing.

     “Receivable Files” means, with respect to each Receivable, the file (on paper or
electronic medium) containing any original documents, agreements, judgments or instruments relating
to such Receivable in the Subservicer’s possession or control including, without limitation, any
bill of sale, loan agreement, any guarantees, any security agreement, any UCC financing statement,
any pledge agreements, any indemnification agreements, any judgment or court orders and any
assignment, supplement, reinstatement, extension, endorsement or modification thereof.

     “Receivables Financing Agreement” shall mean that certain receivables financing
agreement, of even date herewith, among the Borrower, the Servicer,
BMO CM, as collateral agent and
administrator, Fairway Finance Company, LLC and Bank of Montreal.

     “Servicer” has the meaning set forth in the Preamble.

     “Subservicer Termination Event” has the meaning set forth in Section 5.01.

     “Servicing Agreement” has the meaning set forth in the Preamble.

     “Subservicer” has the meaning set forth in the Preamble.

     “Subservicing Agreement” has the meaning set forth in the Preamble.

     “Subservicing Fee” means as to any Collection Period and any Receivable, the monthly
fee payable to the Subservicer, which shall be the product of the percentage applicable to the
class of Receivable for such Receivable, as set forth on Schedule 1 hereto, multiplied by the
Collections on such Receivable received during such Collection Period.

     “Transfer Date” means the Closing Date, as set forth in the Purchase Agreement.

     “Unmatured Subservicer Termination Event” shall mean any event that, if it continues
uncured, will, with lapse of time or notice or lapse of time and notice, constitute a Subservicer
Termination Event.

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ARTICLE 2.

REPRESENTATIONS, WARRANTIES AND COVENANTS

     Section 2.01 Representations, Warranties and Covenants of Subservicer. (a) The
Subservicer hereby represents, warrants and covenants to the Servicer that:

          (i) the Subservicer is duly organized, validly existing and in good standing as a limited
liability partnership under the laws of the District of Columbia and is qualified to transact
business in and is in good standing under the laws of each state in which it is necessary for it to
be so qualified in order to carry on its business as now being conducted and has all licenses
necessary to carry on its business as now being conducted; the Subservicer has the full power and
authority to own its property, to carry on its business as presently conducted, and to execute,
deliver and perform this Subservicing Agreement; the execution, delivery and performance of this
Subservicing Agreement and the consummation of the transactions contemplated hereby have been duly
and validly authorized by all necessary limited liability partnership action on the part of the
Subservicer; and this Subservicing Agreement evidences the legal, valid, binding and enforceable
obligation of the Subservicer, except as enforceability may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium or similar law affecting creditors’ rights generally and by
general principles of equity;

          (ii) except for such consents, licenses, approvals or authorizations obtained on or prior to
the date hereof, the Subservicer is not required to obtain the consent of any other party or obtain
the consent, license, approval or authorization of, or make any registration or declaration with,
any governmental authority, bureau or agency in connection with the execution, delivery,
performance, validity or enforceability of this Subservicing Agreement;

          (iii) the consummation of the transactions contemplated by this Subservicing Agreement and
the fulfillment of the terms hereby will not result in the breach of any term or provision of the
organizational documents of the Subservicer or result in the breach of any term or provision of, or
conflict with or constitute a default under or result in the acceleration of any obligation under,
any agreement, indenture or loan or credit agreement or other instrument to which the Subservicer
or its property is subject, or result in the violation of any law, rule, regulation, order,
judgment or decree to which the Subservicer or its property are subject;

          (iv) the Subservicer is not a party to, bound by or in breach or violation of any indenture
or other agreement or instrument, or subject to or in violation of any statute, order or regulation
of any court, regulatory body, administrative agency or governmental body having jurisdiction over
it, that materially and adversely affects, or may in the future be reasonably expected to
materially and adversely affect, the ability of the Subservicer to perform its obligations under
this Subservicing Agreement;

          (v) there are no actions, suits or proceedings pending or, to the knowledge of the
Subservicer, threatened against the Subservicer, before or by any court, administrative agency,
arbitrator or governmental body with respect to any of the transactions contemplated by

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this Subservicing Agreement, that will, if determined adversely to the Subservicer, affect the
validity or enforceability hereof or materially and adversely affect the Subservicer’s ability to
perform its obligations under this Subservicing Agreement;

          (vi) [reserved];

          (vii) as of the Transfer Date, the Subservicer (i) is not “insolvent” (as such terms is
defined in §101(32)(A) of the Bankruptcy Code), (ii) is able to pay its debts as they become due,
and (iii) does not have unreasonably small capital for the business in which it is engaged or for
any business or transaction in which it is about to engage;

          (viii) all certificates, reports, financial statements and similar writings furnished by the
Subservicer at anytime to the Servicer under or in connection with this Subservicing Agreement have
been, and all such certificates, reports, financial statements and similar writings hereafter
furnished by the Subservicer to such parties will be, true and accurate in every respect material
to the transactions contemplated hereby on the date as of which any such certificate, report,
financial statement or similar writing was or will be delivered, and shall not omit to state any
material facts or any facts necessary to make the statements contained therein, in light of the
circumstances under which they were made, not materially misleading;

          (ix) the Subservicer will comply in all material respects with all applicable laws, rules,
regulations and orders of all governmental authorities (including those which relate to the
Receivables) the violation of which could have a Material Adverse Effect;

          (x) the Subservicer will preserve and maintain its limited liability partnership existence,
rights, franchises and privileges in the jurisdiction of its organization, and qualify and remain
qualified in good standing as a foreign organization in the jurisdiction where its principal place
of business and its chief executive office are located and in each other jurisdiction where the
failure to preserve and maintain such existence, rights, franchises, privileges and qualifications
could have a Material Adverse Effect.

          (xi) the Subservicer will keep books and records that accurately reflect all of Subservicer’s
business affairs and transactions, maintain and implement administrative and operating procedures
(including, without limitation, an ability to re-create records evidencing the Receivables in the
event of the destruction of the originals thereof) and keep and maintain all documents, books,
records and other information reasonably necessary or advisable for the collection of all
Receivables;

          (xii) except in connection with litigation, actions and proceedings in the ordinary course
and relating to the Receivables relating to the Subservicer’s servicing duties as contemplated by
the Accepted Servicing Practices, the Subservicer will furnish to the Servicer:

          (1) As soon as possible, and in any event within three Business Days after, the
Subservicer receives notice thereof, any settlement of, judgment

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(including a judgment with respect to the liability phase of a bifurcated
trial) in or commencement of, any labor controversy, litigation, investigation,
action or proceeding of the type described in Section 2.01(v) and, upon the
Servicer’s request, copies of all non-confidential or non-privileged documentation
relating thereto;

          (2) As soon as possible and in any event within three Business Days of the
Subservicer’s knowledge thereof, notice of any material adverse development in
previously disclosed litigation, investigation or proceeding;

          (3) Promptly and in any event within three Business Days of the Subservicer’s
knowledge thereof, notice of any other event or circumstance that, in the reasonable
judgment of the Subservicer, could have a Material Adverse Effect on the
Subservicer;

          (4) As soon as possible and in any event within three Business Days after the
occurrence of each Subservicer Termination Event and each Unmatured Subservicer
Termination Event, notice of such occurrence setting forth details of such event and
the action that Subservicer proposes to take with respect thereto; and

          (5) Promptly, from time to time, such other information, documents, records or
reports respecting the Receivables, or the condition or operations, financial or
otherwise, of the Subservicer as the Servicer may from time to time reasonably
request.

          (xiii) subject to Section 2.01(a)(x), the Subservicer will maintain all licenses,
permits, charters and registrations which are material to the performance of its obligations under
this Subservicing Agreement;

          (xiv) except pursuant to, or as contemplated by, this Subservicing Agreement, the Subservicer
shall not sell, assign (by operation of law or otherwise) or otherwise dispose of, or create or
suffer to exist voluntarily or, for a period in excess of 10 days, involuntarily any Adverse Claims
naming the Subservicer as debtor upon or with respect to any of the Collateral;

          (xv) the Subservicer will not make any change in its instructions to Obligors regarding
payments to be made to the Subservicer that could adversely affect the collectibility of any
Receivable;

          (xvi) the Subservicer shall ensure that, with respect to each Receivable (excluding up to
$100,000 of Receivables in the aggregate) related to judgments, all required notices and recordings
with respect to the related transfer of such Receivable have been filed or otherwise made of record
with the applicable court on the first date after the Transfer Date when

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the Subservicer makes any filings or appearances with such court, except where in the
reasonable judgment of the Subservicer, filing of such notices and recordings is not cost-effective
and in the best interests of the Borrower; and

          (xvii) the Subservicer will maintain with responsible insurance companies, such insurance as
may be required by any law or governmental regulation or court decree or order applicable to it and
such other insurance, to such extent and against such hazards and liabilities, as is customarily
maintained by companies similarly situated, including, without limitation (1) an errors and
omissions insurance policy and (2) a blanket employee dishonest coverage.

     (b) Upon discovery by the Servicer of a breach of any of the representations and warranties
set forth in this Section 2.01, the party discovering such breach shall give prompt written
notice thereof to the other parties.

     Section 2.02 Servicer Indemnity. The Subservicer hereby agrees to indemnify the
Servicer (the “Servicer Indemnified Party”) forthwith on demand, from and against any and
all damages, losses, claims, liabilities and related costs and expenses, including reasonable
attorneys’ fees and disbursements (“Servicer Indemnified Amounts”) awarded against or
incurred by such Servicer Indemnified Party arising out of or relating to (a) actions taken or
omitted by the Subservicer with respect to the Receivables, including the failure of the
Subservicer to perform its obligations in accordance with the provisions of this Subservicing
Agreement, excluding, however, Servicer Indemnified Amounts to the extent determined by a court of
competent jurisdiction to have resulted from the negligence, bad faith or willful misconduct on the
part of the Servicer Indemnified Party and (b) the breach of any representation or warranty made by
the Subservicer under this Agreement.

     Section 2.03 Subservicer Indemnity. Palisades Collection, L.L.C. hereby agrees to
indemnify the Subservicer (the “Subservicer Indemnified Party”) forthwith on demand, from
and against any and all damages, losses, claims, liabilities and related costs and expenses,
including reasonable attorneys’ fees and disbursements (“Subservicer Indemnified Amounts”)
awarded against or incurred by such Subservicer Indemnified Party arising out of or relating
actions taken or omitted by Palisades Collection, L.L.C. with respect to the Receivables,
excluding, however, Subservicer Indemnified Amounts (i) to the extent determined by a court of
competent jurisdiction to have resulted from the negligence, bad faith or willful misconduct on the
part of the Subservicer Indemnified Party or (ii) arising out of or relating to errors or omissions
in connection with the servicing of the Receivables prior to the Transfer Date or the origination
of the Receivables.

ARTICLE 3.

ADMINISTRATION AND SERVICING OF RECEIVABLES

     Section 3.01 Subservicer to Service. The Subservicer shall service and administer the
Receivables on behalf of the Borrower and the Collateral Agent (for the benefit of the Secured
Parties) and shall have full power and authority, acting alone and/or through third party

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vendors as provided in Section 4.01, to do any and all things that it may deem
reasonably necessary or desirable in connection with such servicing and administration and that do
not violate any of the material terms of this Subservicing Agreement or the Accepted Servicing
Practices. Consistent with the terms of this Subservicing Agreement and the Accepted Servicing
Practices, the Subservicer may waive, modify or vary any term of any Receivable or consent to the
postponement of strict compliance with any such term or in any manner, grant indulgence to any
Obligor under a Receivable if, in the Servicer’s reasonable determination, such waiver,
modification, postponement or indulgence is not adverse to the interests of the Borrower, the
Collateral Agent or any of the Secured Parties. The Subservicer shall have 75% settlement
authority on the full balance owed inclusive of interest and costs unless given other settlement
authority by the Servicer in writing. Without limiting the generality of the foregoing, the
Subservicer in the name of the Servicer or in the name of the Borrower is hereby authorized and
empowered by the Servicer when the Subservicer believes it appropriate in its best judgment to
execute and deliver, on behalf of the Borrower, any and all instruments of satisfaction or
cancellation, or of partial or full release or discharge and all other comparable instruments, with
respect to the Receivables. The Subservicer shall maintain on its electronic system of record,
data on the accounts containing complete notes and documentation of all payments, credits, and any
other servicing activities.

     The Subservicer shall service and administer the Receivables in accordance with applicable
law, including the Fair Debt Collection Practices Act of 1968, as amended, and comparable state
statutes, and by employing such procedures (including collection procedures) and degree of care, in
each case as are customarily employed by the Subservicer in servicing and administering contracts
owned or serviced by the Subservicer comparable to the Receivables. The Subservicer shall take all
actions that are necessary or desirable to maintain continuous perfection of security interests
granted by the Obligors in any collateral securing the Receivables, including, but not limited to,
recording, registering, giving notice, obtaining consents, filing, re-recording, re-registering and
refiling security agreements, financing statements, continuation statements, notices, recordings or
communications with court or other instruments as are necessary to maintain the security interest
granted by the Obligors under the respective Receivables. The Subservicer shall comply at all
times in all material respects with the Accepted Servicing Practices and shall not take any action
to impair the Collateral Agent’s security interest in any Receivable or related collateral, if any,
except to the extent allowed under this Subservicing Agreement, consistent with Accepted Servicing
Practices or required by law.

     The Subservicer may perform any of its duties pursuant to this Subservicing Agreement,
including those delegated to it pursuant to this Subservicing Agreement, through third party
vendors appointed by the Subservicer; provided, that, in each such delegation (i) the
Servicer shall have the right to look solely to the Subservicer for performance, and (iii) the
terms of each third party vendor agreement shall provide that, except with respect to Exempted
Receivables, such agreement and the rights and obligations of the related vendor thereunder shall
automatically, and without any further action by any other Person, terminate upon the termination
of the Subservicer hereunder and that the Subservicer shall provide appropriate notice to each such
vendor). Notwithstanding any such delegation of a duty, the Subservicer shall remain obligated and
liable for the performance of such duty as if the Subservicer were performing such duty.

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     The Subservicer may take such actions as are necessary to discharge its duties as the
Subservicer in accordance with this Subservicing Agreement, including the power to execute and
deliver on behalf of the Borrower such instruments and documents as may be customary, necessary or
desirable in connection with the performance of the Subservicer’s duties under this Subservicing
Agreement (including consents, waivers and discharges relating to the Receivables and related
collateral, if any, and such instruments or documents as may be necessary to effect liquidation of
any Receivable or related collateral, if any). In furtherance thereof, the Servicer hereby
irrevocably appoints the Subservicer as its attorney-in-fact to execute on its behalf such
documents or instruments as are necessary to effect the liquidation of any Receivable or related
collateral, if any.

     Section 3.02 Collection of Receivable Payments; Collection Account. The Subservicer
shall comply in all material respects with generally accepted collection industry standards and
policies and procedures of the Subservicer and shall at all times in all material respects follow
the Accepted Servicing Practices in collecting and attempting to collect all payments called for
under the terms and provisions of the Receivables, and shall use servicing procedures generally
accepted in the collection industry for similar accounts and as otherwise expressly provided by
this Subservicing Agreement; provided, however, that the Subservicer shall not be
obligated to institute any action unless it determines in its good faith judgment that Liquidation
Proceeds that would be realized in connection therewith would be sufficient for the reimbursement
in full of the Liquidation Expenses related thereto. If the Subservicer determines that it shall
not commence any legal action with respect to a Receivable pursuant to the provisions of the prior
sentence, notwithstanding anything else in this Subservicing Agreement to the contrary, the
Servicer shall have the right to remove such Receivable from this Subservicing Agreement at any
time thereafter. With respect to 335,161 Receivables in the amount of $896,543,655.18 identified
as priority and non-priority in the “pre-litigation” category of the Diligence File (as defined in
the Purchase Agreement), if the Subservicer does not initiate litigation within eighteen months of
the date of this Subservicing Agreement, notwithstanding anything else in this Subservicing
Agreement to the contrary, the Servicer shall have the right to remove such applicable Receivables
from this Subservicing Agreement at any time thereafter. With respect to all other Receivables in
the “pre-litigation” category, upon written notice from one party to this Subservicing Agreement to
the other that litigation should be initiated with respect to any such Receivable, if the
Subservicer does not initiate litigation within 180 days of such notice, notwithstanding anything
else in this Subservicing Agreement to the contrary, the Servicer shall have the right to remove
such applicable Receivables from this Subservicing Agreement at any time thereafter. In connection
with such action, the Subservicer shall follow such practices and procedures required by
Section 3.01 and make advances of its own funds for any out-of-pocket expenses incurred.
The Subservicer shall be reimbursed for Liquidation Expenses (including advances) by retention of
the required reimbursement from Liquidation Proceeds and shall deposit the excess of such proceeds
in the Collection Account.

     Subject to Section 3.06 (which provides that, except in the instances set forth
therein, the remittance of Collections shall net the related Servicing Fees), the Subservicer shall
deposit in an attorney trust account no later than 1 Business Day following receipt thereof and in
the Collection Account no later than 1 Business Day thereafter:

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               (i) All Liquidation Proceeds, including, without limitation, all principal, finance charges,
interest, late payment fees and extension fees, insurance proceeds and all other amounts and
charges but net of (x) charge backs (attributable to errors in posting, returned checks), (y)
rights of offset for amounts that should not have been paid or that must be refunded as the result
of a successful claim or defense under bankruptcy or similar laws and (z) proceeds to be retained
by the Servicer for reimbursement of Liquidation Expenses; and

               (ii) Any other proceeds of any Receivables or property acquired in respect thereof and any
other Collections received by the Subservicer.

From the time of receipt of any of the amounts specified in the preceding two clauses of this
paragraph until deposit thereof in the Collection Account, the Subservicer shall keep such funds in
an attorney trust account. The Subservicer shall not deposit or otherwise credit to the Collection
Account, or cause or permit to be so deposited or credited by any Person, any amounts not
representing proceeds of the Collateral. The Subservicer agrees that it has no ownership right or
interest in amounts on deposit in the Collection Account, except that which may arise indirectly
through a right to receive distributions from the Collection Account under this Subservicing
Agreement. The Subservicer shall have the right to request the Servicer request the Collateral
Agent to withdraw the following amounts from the Collection Account for payment to the Subservicer
on a monthly basis after such time as the Servicer is permitted to request such amounts: (a)
chargebacks attributable to errors in posting, returned checks, or rights of offset for amounts
that should not have been paid or that must be refunded as a result of a successful claim or
defense under bankruptcy or similar laws (to the extent such amounts have not already been retained
by the Subservicer pursuant to clause (i) and (ii) of this paragraph) and (b)
amounts deposited in error by the Subservicer (and the Servicer may rely on the Subservicer’s
calculation of such chargebacks and amounts).

     In those cases where a vendor is subservicing a Receivable pursuant to a vendor agreement, the
Subservicer shall cause the vendor, pursuant to such agreement, to deposit all Collections received
by such vendor (in respect of the Receivables being subserviced by such vendor) with the
Subservicer within, using reasonable efforts, seven days, but in no event later than one month, and
the Subservicer shall deposit such Collections within 1 Business Day of receipt thereafter into the
Collection Account (net of any servicing fee (not in excess of the Subservicing Fee with respect
thereto)).

     Section 3.03 Custodial Arrangements.

          (a) Subject to the terms and conditions of this Section, the Subservicer shall maintain
custody and possession of the Receivable Files with respect to the Receivables (for the benefit of
the Secured Parties).

          (b) To the extent any Receivable Files or any portion thereof are held by the Subservicer in
accordance with Section 3.03(a), the Subservicer agrees to act with reasonable care, using
that degree of skill and care that it exercises with respect to similar contracts owned and/or
serviced by it. The Subservicer shall promptly report to the Servicer any material failure by it
to hold such Receivable Files as herein provided and shall promptly take appropriate action

11

 

to remedy such failure. In connection with holding any Receivable Files, the Subservicer
agrees not to assert, and shall cause each related vendor not to assert any beneficial ownership
interests in the Receivables. The Subservicer agrees to indemnify the Servicer, Collateral Agent,
the other Secured Parties and the Borrower, and their respective officers, directors, employees,
partners and agents for any and all liabilities, obligations, losses, damages, payments, costs, or
expenses of any kind whatsoever that may be imposed on or incurred by any such Person arising from
the negligence or willful misconduct of the Subservicer in holding of the Receivable Files pursuant
to Section 3.03(a); provided, however, that the Subservicer will not be
liable to the extent that any such amount resulted from the gross negligence or willful misconduct
of such Person.

          (c) The Subservicer shall not, without the prior consent of the Servicer, deliver or release
to the Borrower or any other Person any Receivable Files (or the security interest in the related
collateral, if any) except (i) to vendors, (ii) in the ordinary course of its business in
connection with the release of collateral securing such Receivable after satisfaction of the
related indebtedness thereunder and (iii) in connection with a sale of a Receivable by the
Borrower. Upon the request of the Servicer following the occurrence of a Subservicer Termination
Event, the Subservicer shall deliver to the Servicer all Receivable Files held by the Subservicer
unless the Subservicer is terminated as a result of a termination of the Servicer under the
Servicing Agreement, in which case the Subservicer shall deliver all Receivables Files to the
Collateral Agent.

     Section 3.04 Reports to Servicer.

          (a) On a weekly basis, the Subservicer shall prepare and deliver a collection report, showing,
among other things, (i) collections, (ii) proceeds from sales and (iii) cost reimbursements and
cost advance, in each case in the aggregate and by type of Receivable, in a form mutually
acceptable to the parties hereto.

          (b) Upon reasonable request by Servicer, in a format reasonably acceptable to the Servicer,
the Subservicer shall furnish the names, addresses and phone numbers of any attorney, collector or
other person who is not an employee of the Subservicer and, as of the last day of such calendar
quarter, was seeking to collect any account and a list of the accounts that are being collected by
such person. The Subservicer shall make available on a secure website information with respect to
the accounts containing data available in fields, and in a format, acceptable to the Servicer,
including job, bank and pertinent collection information, and shall provide the Servicer with
secure, remote access to such website. From time to time, upon reasonable request, the
Administrator shall have the right to obtain information about the Receivables from the
Subservicer. In addition, the Subservicer will monitor all judgments and, on a monthly basis, the
Subservicer will identify which of such judgments will and will not be renewed by the Subservicer
120 days prior to date of renewal of such Judgments.

          (c) The Subservicer shall notify the Servicer immediately in writing if any of the following
shall occur: (i) any Subservicer Termination Event or Unmatured Subservicer Termination Event;
(ii) any class action or coordinated multiple plaintiff action shall be instituted

12

 

or threatened in writing with respect to any Receivables or (iii) any governmental official
shall institute, or threaten to institute any investigation or proceeding relating to any account.

     Section 3.05 Annual Statement as to Compliance and Audit. The Subservicer will
deliver to the Servicer on or before April 15 of each year, beginning with April 15, 2008, an
Officer’s Certificate stating that (i) a review of the activities of the Subservicer during the
preceding calendar year and of performance under this Subservicing Agreement has been made under
such officer’s supervision, (ii) to the best of such officer’s knowledge, based on such review, the
Subservicer has fulfilled all its obligations under this Subservicing Agreement throughout such
year, or, if there has been a default in the fulfillment of any such obligation, specifying each
such default known to such officer and the nature and status thereof and (iii) to the best of such
officer’s knowledge, each vendor has fulfilled its obligations, or, if there has been a default in
the fulfillment of such obligations, specifying such default known to such officer and the nature
and status thereof.

     The Subservicer shall provide to the Servicer, within 120 days of the end of each fiscal year,
annual audited financial statements for the Subservicer prepared in accordance with generally
accepted accounting principles, consistently applied, by an independent certified public accounting
firm of national standing

     Section 3.06 Servicing Compensation. The Subservicer, as compensation for its
activities hereunder, shall be entitled to receive the Subservicing Fee, which shall be payable by
the Servicer no later than the seventh calendar day of each month or, if such day, is not a
Business Day, the next such Business Day; provided, however, (i) in all instances
with respect to Exempted Receivables and (ii) in all instances other than with respect to Exempted
Receivables, prior to the occurrence of a Subservicer Termination Event or Unmatured Subservicer
Termination Event (which has not been waived), the Subservicer may withhold the Subservicing Fee
payable thereto with respect to any Collections from the amount to be deposited thereby into the
Collection Account.

     The Subservicer shall be required to pay all expenses incurred by it in connection with its
servicing activities hereunder (including payment of the fees and expenses of any vendor) and shall
not be entitled to reimbursement therefor except as specifically provided in Section 3.02.

     Section 3.07 Receivable Reviews. To the extent permitted under applicable law any
time during regular business hours and upon at least five Business Days’ prior notice (so long as
no Subservicer Termination Event or Unmatured Subservicer Termination Event has occurred within
such calendar year), the Subservicer shall permit the Servicer and the Administrator, their agents,
representatives or designees (i) to examine and make copies of, and abstracts from, the Receivable
Files and of all books, records and documents (including, without limitation, computer tapes and
disks) in possession or under control of the Subservicer or any vendor (to the extent permissible
under the related vendor agreement) relating to the Receivables, (ii) to cause such books and
records to be audited by independent public accounts selected by the Servicer or its designee and
(iii) to visit the offices and properties of the Subservicer for the purposes of examining such
materials described above, and to discuss matters

13

 

related to the Receivables with any of the officers and employees of the Subservicer having
knowledge of such matters. Any activities undertaken by the Servicer or its designee in connection
with items (i) through (iii) above, shall be at the expense of the Servicer; provided,
however that the Servicer shall not be required to pay for more than two audits in any
calendar year unless a Subservicer Termination Event or Unmatured Subservicer Termination Event has
occurred and is continuing, in which event such audits may be as frequently as the Administrator
may determine in its sole discretion.

ARTICLE 4.

VENDORS

     Section 4.01 Agreements Between Subservicer and Vendors. The Subservicer, with the
prior written consent of the Servicer, may enter into vendor agreement with one or more third party
vendors for the servicing and administration of certain of the Receivables. References in this
Subservicing Agreement to actions taken or to be taken by the Subservicer in servicing the
Receivables include actions taken or to be taken by a vendor on behalf of the Subservicer. Each
vendor will service the Receivables in a manner materially consistent with this Subservicing
Agreement. The Subservicer hereby acknowledges that it is holding the Receivable Files and any
other items of the Collateral in its possession from time to time for the related Receivables as
bailee of Borrower and the Collateral Agent (for the benefit of the Secured Parties) in accordance
with Section 3.03.

     Section 4.02 Obligation of Subservicer. Notwithstanding any agreement with a vendor,
any of the provisions of this Subservicing Agreement relating to agreements or arrangements between
the Subservicer or a vendor or reference to actions taken through a vendor or otherwise, the
Subservicer shall remain obligated to the Servicer, the Borrower and the Collateral Agent for the
servicing and administering of the Receivables in accordance with the provisions of Section
3.01 without diminution of such obligation or liability by virtue of such arrangements or by
virtue of indemnification from a vendor and to the same extent and under the same terms and
conditions as if the Subservicer alone were servicing and administering the Receivables. The
Subservicer shall be entitled to enter into any agreement with a vendor for indemnification of the
Subservicer and nothing contained in this Subservicing Agreement shall be deemed to limit or modify
such indemnification.

     Section 4.03 No Contractual Relationship Between a Vendor and the Servicer. Any
vendor agreement that may be entered into and any other transactions or services relating to the
Receivables involving a vendor in its capacity as such shall be deemed to be between a vendor and
the Subservicer alone and the Servicer shall not be deemed a party thereto and shall have no
claims, rights, obligations, duties or liabilities with respect to a vendor except as set forth in
Section 4.04.

     Section 4.04 Assumption or Termination of Vendor Agreement by Servicer. In the event
the Subservicer shall for any reason no longer be the subservicer of the Receivables (including by
reason of a Subservicer Termination Event) pursuant to this Subservicing

14

 

Agreement, the Servicer shall have the right, in its sole discretion, to terminate all of the
rights and obligations of any vendor under the related vendor agreement.

ARTICLE 5.

SUBSERVICER TERMINATION EVENT

     Section 5.01 Subservicer Termination Event. “Subservicer Termination Event,”
wherever used herein, means any one of the following events:

          (i) the Subservicer shall fail to deposit all amounts required to be deposited in the
Collection Account when required to be deposited under this Subservicing Agreement and such failure
shall continue unremedied for 1 Business Day after the Subservicer has knowledge or notice thereof,
other than with respect to administrative errors not to exceed $10,000 of Collections in any
Collection Period for which such grace period shall be 5 Business Days after the Subservicer has
knowledge or notice thereof; or

          (ii) the Subservicer shall fail to observe or perform in any material respect any other of
the covenants or agreements on the part of the Subservicer contained in this Subservicing Agreement
or any other Transaction Document to which it is a party and such failure shall continue unremedied
for a period of twenty (20) days after the Subservicer has knowledge or notice thereof;

          (iii) a decree or order of a court or agency or supervisory authority having jurisdiction in
the premises in an involuntary case under any present or future federal or state bankruptcy,
insolvency or similar law or appointing a conservator or receiver or liquidator in any insolvency,
readjustment of debt, marshaling of assets and liabilities or similar proceedings, or for the
winding-up or liquidation of its affairs, shall have been entered against the Subservicer;

          (iv) the Subservicer shall consent to the appointment of a conservator or receiver or
liquidator in any insolvency, readjustment of debt, marshaling of assets and liabilities or similar
proceedings of, or relating to, the Subservicer or of, or relating to, all or substantially all of
the property of the Subservicer;

          (v) the Subservicer shall admit in writing its inability to pay its debts generally as they
become due, file a petition to take advantage of, or commence a voluntary case under, any
applicable insolvency or reorganization statute, make an assignment for the benefit of its
creditors, or voluntarily suspend payment of its obligations;

          (vi) the Subservicer shall have breached any of the representations and warranties set forth
in Section 2.01 in any material respect and the Subservicer shall have failed to cure such
breach within ten (10) days of its receipt of a notice of such breach;

          (vii) a Servicer Termination Event shall have occurred under the Servicing Agreement; or

15

 

          (viii) a Termination Event shall have occurred under the Receivables Financing Agreement.

     If a Subservicer Termination Event shall occur (which has not been waived), then, and in each
and every such case, the Servicer may, by notice in writing to the Subservicer (with a copy to the
Administrator, the Borrower and the Collateral Agent), terminate all of the rights and obligations
of the Subservicer under this Subservicing Agreement and in and to the Subservicer’s interest in
and to the Receivables and the proceeds thereof (except with respect to the Subservicer’s right to
collect Exempted Receivables pursuant to the terms of this Agreement), subject to compensation,
rights of reimbursement, indemnity and limitation on liability to which the Subservicer is then
entitled. Upon the effective date of such termination, all authority and power of the Subservicer
under this Subservicing Agreement, whether with respect to the Receivables or otherwise, shall
terminate. The Subservicer agrees to cooperate with such responsibilities and rights hereunder,
including, without limitation, the transfer pursuant to such termination. If the Subservicer is
terminated pursuant to this Section 5.01, then the Subservicer shall bear all of the costs
and expenses of transferring the duties and obligations of the Subservicer; provided,
however, that if the Subservicer fails to bear all such costs and expenses any successor
shall be entitled to reimbursement from amounts realized on the related collateral, if any, by
retention of such amounts prior to the distribution of any Collections from the Collection Account
in accordance with the Receivables Financing Agreement.

     Section 5.02 Term of Subservicer. (a) Except with respect to Exempted Receivables,
upon notice, the Subservicer may be removed by the Servicer, such removal to become effective upon
such date as specified in such notice upon the consent of the Administrator, which consent shall
not be unreasonably withheld or delayed. The Servicer shall be entitled to sell, on behalf of
Borrower, any and all Receivables (subject to the requirements of the Receivables Financing
Agreement and related documents), including Exempted Receivables; provided, in the case of Exempted
Receivables, except in connection with a Subservicer Termination Event pursuant to clauses (iii),
(iv) and (v) of Section 5.01, or occurrences of fraud, theft, willful misconduct or bankruptcy that
the Subservicer shall be retained as subservicer of such Receivables on terms materially similar to
the ones in this Subservicing Agreement.

     (b) The initial term of this Subservicing Agreement, except with respect to Exempted
Receivables, shall be two years, beginning on the date of this Subservicing Agreement, and shall be
renewable for additional terms upon the mutual agreement of the Servicer and Subservicer.

ARTICLE 6.

MISCELLANEOUS PROVISIONS

     Section 6.01 Amendments, Etc. No amendment, modification or waiver of, or consent
with respect to, any provision of this Subservicing Agreement shall be effected unless the same
shall be in writing and signed and delivered by each of the parties hereto and consented to by the
Administrator (which consent shall not be unreasonably withheld), and then any such waiver or
consent shall be effected only in the specific instance and for the specific purpose for which
given.

16

 

     Section 6.02 Acknowledgment of Subservicer. The Subservicer hereby agrees that upon
request from the Collateral Agent after the occurrence of a Termination Event which does not have
the effect of terminating the Subservicer under this Subservicing Agreement, the Subservicer shall
provide all services described in this Subservicing Agreement for the benefit of the Collateral
Agent (for the benefit of the Secured Parties) in accordance with the terms of this Subservicing
Agreement.

     Section 6.03 Notices. Any notice required or permitted to be given under this
Subservicing Agreement shall be in writing and shall be mailed by express mail, postage prepaid, or
personally delivered to an officer of the receiving party. All such communications shall be
mailed, sent or delivered to the parties at their respective addresses as set forth opposite their
respective signatures to this Subservicing Agreement, or as to any party at such other address as
shall be designated by such party in a written notice to each other party complying as to delivery
with the terms of this Section. All such notices and other communications shall, if properly
addressed and sent by pre-paid courier service, be deemed given when received; any notice or other
communication, if transmitted by facsimile, shall be deemed given when transmitted and receipt
thereof has been confirmed by telephone or electronic means.

     Section 6.04 GOVERNING LAW. THIS SUBSERVICING AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK OTHER THAN THOSE SET FORTH
IN SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK.

     Section 6.05 Successors and Assigns. This Subservicing Agreement shall be binding
upon and shall inure to the benefit of the parties hereto, the Borrower, the Collateral Agent, the
Secured Parties and their successors and assigns; provided, however, that the
Subservicer may not assign its rights, obligations or duties hereunder without the prior written
consent of the Servicer and the Administrator (which consent shall not be unreasonably withheld),
except as otherwise set forth in this Subservicing Agreement.

     Section 6.06 Attorney’s Liens. The Subservicer has and shall be deemed to have waived
any and all attorney’s liens against any Receivables subserviced hereunder. The Subservicer shall
require any attorney or other vendor engaged to service any Receivables to waive any and all
attorney’s liens and such attorneys and other vendors shall be deemed to have made such waiver.

     Section 6.07 Quantum Meruit. In the event of a dispute between the Servicer and the
Subservicer relating to the performance required hereunder, the Subservicer agrees to waive its
rights to pursue any legal action for payment pursuant to or based upon the equitable remedy of
quantum meruit.

     Section 6.08 Employment. The Subservicer hereby covenants and agrees that, for the
first two years of this Subservicing Agreement, the Subservicer shall remain in the collection

17

 

business
and [*] and [*] will remain employed by the Subservicer in a
senior capacity.

     Section 6.09 Severability of Provisions. If any one or more of the covenants,
agreements, provisions or terms of this Subservicing Agreement shall be for any reason whatsoever
held invalid, then such covenants, agreements, provisions or terms shall be deemed severable from
the remaining covenants, agreements, provisions or terms of this Subservicing Agreement and shall
in no way affect the validity or enforceability of the other provisions of this Subservicing
Agreement.

     Section 6.10 Consent to Jurisdiction. ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO
THIS SUBSERVICING AGREEMENT MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK OR OF THE UNITED
STATES FEDERAL COURT SITTING IN NEW YORK, NEW YORK, AND BY EXECUTION AND DELIVERY OF THIS
SUBSERVICING AGREEMENT, EACH OF THE BORROWER AND THE SERVICER CONSENTS, FOR ITSELF AND IN RESPECT
OF ITS PROPERTY, TO THE NON-EXCLUSIVE JURISDICTION OF THOSE COURTS. EACH OF THE BORROWER AND THE
SERVICER IRREVOCABLY WAIVES, TO THE MAXIMUM EXTENT PERMITTED BY LAW, ANY OBJECTION, INCLUDING ANY
OBJECTION TO THE LAYING OF VENUE OR BASED ON THE GROUNDS OF FORUM NON CONVENIENS, THAT IT MAY NOW
OR HEREAFTER HAVE TO THE BRINGING OF ANY ACTION OR PROCEEDING IN SUCH JURISDICTION IN RESPECT OF
THIS SUBSERVICING AGREEMENT OR ANY DOCUMENT RELATED HERETO.

     Section 6.11 Survival. The rights and remedies with respect to the indemnification
provisions of Section 2.02 shall be continuing and shall survive any termination of this Agreement
and any termination of Subservicer’s rights to act as a “Subservicer” hereunder.

     Section 6.12 Counterparts. This Subservicing Agreement may be executed in two or more
counterparts, each of which shall be an original, but all of which together shall constitute one
and the same instrument.

     Section 6.13 Third Party Beneficiaries. Each party hereto acknowledges and agrees
that the Lender, the Administrator and the Collateral Agent are third party beneficiaries under
this Agreement and shall have the full power to enforce its rights and benefits granted hereunder.

[Signature page follows]

18

 

     IN WITNESS WHEREOF, the Servicer and the Subservicer have caused their names to be signed
hereto by their respective officers thereunto duly authorized, all as of the day and year first
above written.

	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	[*]	,	 
	 	 	 	 	 
	 	 	     as subservicer	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:
	 	[*] 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	/s/      [*] 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Title:	 	Managing Partner 	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	ADDRESS:	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 

Subservicing Agreement

S-1

 

	 	 	 	 	 	 	 	 	 
	 	 	PALISADES COLLECTION, L.L.C.,

     as Servicer	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Mitchell Cohen	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Name: Mitchell Cohen	 	 
	 	 	 	 	Title: Manager	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	ADDRESS:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	210 Sylvan Avenue

Englewood Cliffs, NJ 07632	 	 

Subservicing Agreement

S-2

 

SCHEDULE 1

SUBSERVICING FEE SCHEDULE

	 	 	 	 	 
	CLASS OF RECEIVABLE	 	PERCENTAGE
	All Receivables directly being serviced by the Subservicer;
provided, for the purposes of clarification, that any
Receivable subserviced by a vendor under this Subservicing
Agreement, will not be deemed to be directly serviced by the
Subservicer
	 	[*]%
	 
	 	 	 	 
	All other Receivables
	 	[*]%

For the purposes of this Schedule, “Exempted Receivables” shall not be a class hereunder. When
determining the applicable class for an “Exempted Receivable,” such class shall instead be related
to the Receivable underlying such Exempted Receivable.

Subservicing Agreement

S1-1

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	 
	ARTICLE 1. DEFINITIONS
	 	 	1	 
	Section 1.01 Definitions
	 	 	1	 
	ARTICLE 2. REPRESENTATIONS, WARRANTIES AND COVENANTS
	 	 	5	 
	Section 2.01 Representations, Warranties and Covenants of Subservicer
	 	 	5	 
	Section 2.02 Servicer Indemnity
	 	 	8	 
	Section 2.03 Subservicer Indemnity
	 	 	8	 
	ARTICLE 3. ADMINISTRATION AND SERVICING OF RECEIVABLES
	 	 	8	 
	Section 3.01 Subservicer to Servicer
	 	 	8	 
	Section 3.02 Collection of Receivable Payments; Collection Account
	 	 	10	 
	Section 3.03 Custodial Arrangements
	 	 	11	 
	Section 3.04 Reports to Servicer
	 	 	12	 
	Section 3.05 Annual Statement as to Compliance and Audit
	 	 	13	 
	Section 3.06 Servicing Compensation
	 	 	13	 
	Section 3.07 Receivable Reviews
	 	 	13	 
	ARTICLE 4. VENDORS
	 	 	14	 
	Section 4.01 Agreements Between Subservicer and Vendors
	 	 	14	 
	Section 4.02 Obligation of Subservicer
	 	 	14	 
	Section 4.03 No Contractual Relationship Between a Vendor and the Servicer
	 	 	14	 
	Section 4.04 Assumption or Termination of Vendor Agreement by Servicer
	 	 	14	 
	ARTICLE 5. SUBSERVICER TERMINATION EVENT
	 	 	15	 
	Section 5.01 Subservicer Termination Event
	 	 	15	 
	Section 5.02 Term of Subservicer
	 	 	16	 
	ARTICLE 6. MISCELLANEOUS PROVISIONS
	 	 	17	 
	Section 6.01 Amendments, Etc
	 	 	17	 
	Section 6.02 Acknowledgment of Subservicer
	 	 	17	 
	Section 6.03 Notices
	 	 	17	 
	Section 6.04 GOVERNING LAW
	 	 	17	 
	Section 6.05 Successors and Assigns
	 	 	17	 
	Section 6.06 Attorney’s Liens
	 	 	17	 
	Section 6.07 Quantum Meruit
	 	 	17	 
	Section 6.08 Employment
	 	 	18	 

i

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	Page	 
	 
	Section 6.09 Severability of Provision
	 	 	18	 
	Section 6.10 Consent to Jurisdiction
	 	 	18	 
	Section 6.11 Survival
	 	 	18	 
	Section 6.12 Counterparts
	 	 	18	 
	Section 6.13 Third Party Beneficiaries
	 	 	18	 
	 
	 	 	 	 
	Exhibits
	 	 	 	 
	 
	 	 	 	 
	Exhibit A            List of Receivables
	 	 	 	 

iiEX-10.1.A

 

Exhibit 10.1.a

AGREEMENT OF PURCHASE AND SALE

by and between

BREOF BNK FANNIN LP

and

BREOF BNK PHOENIX LLC,

collectively as Seller,

and

CRZ PHOENIX I LLC, a

Delaware limited liability company,

as Buyer

 

 

Table of Contents

	 	 	 	 	 
	Article	 	Page	 
	ARTICLE 1 DEFINITIONS
	 	 	2	 
	 
	 	 	 	 
	1.1 Definitions
	 	 	2	 
	 
	 	 	 	 
	ARTICLE 2 PURCHASE AND SALE
	 	 	6	 
	 
	 	 	 	 
	2.1 Purchase and Sale
	 	 	6	 
	 
	 	 	 	 
	ARTICLE 3 DEPOSIT AND PURCHASE PRICE
	 	 	7	 
	 
	 	 	 	 
	3.1 Earnest Money Deposit in Escrow
	 	 	7	 
	 
	 	 	 	 
	3.2 Purchase Price and Handling of Earnest Money Deposit
	 	 	7	 
	 
	 	 	 	 
	3.3 Closing Escrow
	 	 	8	 
	 
	 	 	 	 
	ARTICLE 4 TITLE AND SURVEY
	 	 	8	 
	 
	 	 	 	 
	4.1 Title
	 	 	8	 
	 
	 	 	 	 
	4.2 Survey
	 	 	9	 
	 
	 	 	 	 
	4.3 Tenant Estoppels
	 	 	9	 
	 
	 	 	 	 
	4.4 Fannin Ground Lessor and Phoenix Estoppels
	 	 	10	 
	 
	 	 	 	 
	ARTICLE 5 DUE DILIGENCE
	 	 	11	 
	 
	 	 	 	 
	5.1 Due Diligence Materials
	 	 	11	 
	 
	 	 	 	 
	5.2 Inspection
	 	 	11	 
	 
	 	 	 	 
	5.3 Due Diligence
	 	 	13	 
	 
	 	 	 	 
	ARTICLE 6 REPRESENTATIONS AND WARRANTIES
	 	 	13	 
	 
	 	 	 	 
	6.1 Representation and Warranties of Seller
	 	 	13	 
	 
	 	 	 	 
	6.2 Limitations
	 	 	15	 
	 
	 	 	 	 
	6.3 Representations and Warranties of Buyer
	 	 	16	 
	 
	 	 	 	 
	6.4 AS-IS
	 	 	17	 
	 
	 	 	 	 
	6.5 Release
	 	 	18	 
	 
	 	 	 	 
	ARTICLE 7 SELLER’S COVENANTS; JP SUBLEASE LETTER AGREEMENT
	 	 	19	 
	 
	 	 	 	 
	7.1 Covenants
	 	 	19	 
	 
	 	 	 	 
	7.2 JP Sublease Letter Agreement
	 	 	20	 
	 
	 	 	 	 
	ARTICLE 8 CONDITIONS PRECEDENT
	 	 	21	 
	 
	 	 	 	 
	8.1 Conditions Precedent to the Obligations of Buyer
	 	 	21	 
	 
	 	 	 	 
	8.2 Conditions Precedent to the Obligations of Seller
	 	 	22	 
	 
	 	 	 	 
	ARTICLE 9 DESTRUCTION, DAMAGE OR CONDEMNATION
	 	 	22	 

i

 

	 	 	 	 	 
	Article	 	Page	 
	9.1 Destruction or Damage
	 	 	22	 
	 
	 	 	 	 
	9.2 Condemnation
	 	 	23	 
	 
	 	 	 	 
	ARTICLE 10 POSSESSION, PRORATIONS AND CLOSING COSTS
	 	 	24	 
	 
	 	 	 	 
	10.1 Possession
	 	 	24	 
	 
	 	 	 	 
	10.2 Prorations
	 	 	24	 
	 
	 	 	 	 
	10.3 Closing Costs
	 	 	27	 
	 
	 	 	 	 
	ARTICLE 11 CLOSING
	 	 	27	 
	 
	 	 	 	 
	11.1 Time and Place
	 	 	27	 
	 
	 	 	 	 
	11.2 Seller’s Deliveries
	 	 	28	 
	 
	 	 	 	 
	11.3 Buyer’s Deliveries
	 	 	30	 
	 
	 	 	 	 
	11.4 Concurrent Deliveries
	 	 	31	 
	 
	 	 	 	 
	11.5 Concurrent Transactions
	 	 	31	 
	 
	 	 	 	 
	11.6 New York Style Closing
	 	 	31	 
	 
	 	 	 	 
	11.7 Title Insurance
	 	 	31	 
	 
	 	 	 	 
	ARTICLE 12 DEFAULT
	 	 	32	 
	 
	 	 	 	 
	12.1 Buyer Default
	 	 	32	 
	 
	 	 	 	 
	12.2 Seller Default
	 	 	33	 
	 
	 	 	 	 
	ARTICLE 13 BROKERAGE
	 	 	34	 
	 
	 	 	 	 
	13.1 Brokerage
	 	 	34	 
	 
	 	 	 	 
	ARTICLE 14 NOTICES
	 	 	34	 
	 
	 	 	 	 
	14.1 Notices
	 	 	34	 
	 
	 	 	 	 
	ARTICLE 15 ADDITIONAL COVENANTS
	 	 	35	 
	 
	 	 	 	 
	15.1 Entire Agreement, Amendments and Waivers
	 	 	35	 
	 
	 	 	 	 
	15.2 Further Assurances
	 	 	35	 
	 
	 	 	 	 
	15.3 Successors and Assigns
	 	 	35	 
	 
	 	 	 	 
	15.4 No Third Party Benefits
	 	 	35	 
	 
	 	 	 	 
	15.5 Interpretation
	 	 	35	 
	 
	 	 	 	 
	15.6 Governing Law
	 	 	36	 
	 
	 	 	 	 
	15.7 Attorneys’ Fees
	 	 	36	 
	 
	 	 	 	 
	15.8 Assignment
	 	 	36	 
	 
	 	 	 	 
	ARTICLE 16 CONFIDENTIALITY
	 	 	36	 
	 
	 	 	 	 
	16.1 Confidentiality
	 	 	36	 
	 
	 	 	 	 
	ARTICLE 17 EXCHANGE PROVISIONS
	 	 	37	 

ii

 

	 	 	 	 	 
	Article	 	Page	 
	17.1 Tax Free Exchange
	 	 	37	 

LIST OF EXHIBITS AND SCHEDULES

	 	 	 	 	 
	EXHIBIT A-1

	 	—
	 	Legal Description of Fannin Fee Land
	EXHIBIT A-2

	 	—
	 	Legal Description of Fannin Ground Leased Land
	EXHIBIT A-3

	 	—
	 	Legal Description of Phoenix Building Land
	EXHIBIT A-4

	 	—
	 	Legal Description of Phoenix Parking Land
	EXHIBIT A-5

	 	—
	 	Legal Description of Phoenix Tunnel Leased Land
	EXHIBIT B

	 	—
	 	Due Diligence Materials
	EXHIBIT C

	 	—
	 	Excluded Items of Tangible Personal Property
	EXHIBIT D-1

	 	—
	 	Form of Seller Ground Lessor Estoppel Letter
	EXHIBIT E

	 	—
	 	List of Contracts
	EXHIBIT F

	 	—
	 	List of Violations
	EXHIBIT G

	 	—
	 	List of Litigation
	EXHIBIT H-1

	 	—
	 	Description of JPMorgan Leases
	EXHIBIT H-2

	 	—
	 	List of Other Leases
	EXHIBIT I

	 	—
	 	Assignment and Assumption of Contracts
	EXHIBIT J

	 	—
	 	Assignment and Assumption of Licenses and Permits and Warranties
	EXHIBIT K

	 	—
	 	Bill of Sale
	EXHIBIT L

	 	—
	 	Assignment and Assumption of Leases
	EXHIBIT M

	 	—
	 	Form of Assignment and Assumption of Fannin Ground Lease
	EXHIBIT N

	 	—
	 	Form of Assignment and Assumption of Phoenix Tunnel Lease
	EXHIBIT O

	 	—
	 	Rent Enhancement Agreement
	EXHIBIT P

	 	—
	 	JP Sublease Letter Agreement
	EXHIBIT Q

	 	—
	 	Confidentiality Agreement

LIST OF SCHEDULES

Schedule 1.1(o) Fannin Ground Lease Description

iii

 

AGREEMENT OF PURCHASE AND SALE

     THIS AGREEMENT OF PURCHASE AND SALE is made and entered into as of February 16, 2007, by and
between BREOF BNK FANNIN LP, a Delaware limited partnership (“BREOF Fannin”) and BREOF BNK PHOENIX
LLC, a Delaware limited liability company (“BREOF Phoenix”) (BREOF Fannin and BREOF Phoenix are
collectively referred to herein as “Seller”), and CRZ PHOENIX I LLC, a Delaware limited liability
company (“Buyer”).

R E C I T A L S:

     A. BREOF Fannin is the fee owner of the land legally described on Exhibit A-1 attached hereto
(“Fannin Fee Land”) located in Houston, Texas; BREOF Fannin is, pursuant to the Fannin Ground Lease
(defined below), the ground lessee of the land legally described on Exhibit A-2 attached hereto
(“Fannin Ground Leased Land”; the Fannin Fee Land and BREOF Fannin’s leasehold interest in the
Fannin Ground Leased Land are collectively referred to as the “Fannin Land”), located in Houston,
Texas and contiguous to the Fannin Fee Land.

     B. BREOF Fannin is the fee owner of that certain building commonly known as 1111 Fannin
Street, Houston, Texas and located on both the Fannin Fee Land and Fannin Ground Leased Land
(“Fannin Building”), subject however to the terms and provisions of the Fannin Ground Lease.

     C. BREOF Phoenix is the fee owner of the land legally described on Exhibit A-3 attached hereto
(“Phoenix Building Land”) and the land legally described on Exhibit A-4 attached hereto (“Phoenix
Parking Land”), both of which are located in Phoenix, Arizona; BREOF Phoenix is, pursuant to the
Phoenix Tunnel Lease (defined below), the lessee of certain ramps and tunnels located at the land
legally described on Exhibit A-5 attached hereto (“Phoenix Tunnel Leased Land”; the Phoenix
Building Land, the Phoenix Parking Land and BREOF Phoenix’s leasehold interest in the Phoenix
Tunnel Leased Land are collectively referred to as the “Phoenix Land”), located in Phoenix,
Arizona.

     D. BREOF Phoenix is the fee owner of that certain (i) building commonly known as 201 North
Central Avenue, Phoenix, Arizona and located on the Phoenix Building Land (“Phoenix Building”), and
(ii) parking deck structure located on the Phoenix Parking Land (“Phoenix Parking Deck”).

     E. Seller has certain right, title and interest in and to the Personal Property, the
Contracts, the Licenses and Permits, and the Warranties (as such terms are hereinafter defined).

     F. Seller desires to sell to Buyer, and Buyer desires to purchase from Seller, all of Seller’s
right, title and interest in and to the Land and the Improvements and the balance of the Property
(as hereinafter defined) upon and subject to the terms and conditions hereinafter set forth.

 

 

     NOW, THEREFORE, in consideration of the mutual covenants and agreements contained in this
Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, Seller and Buyer agree as follows:

ARTICLE 1

DEFINITIONS

     1.1 Definitions. When used herein, the following terms shall have the respective
meanings set forth opposite each such term:

     (a) Agreement. This Agreement of Purchase and Sale, including the Recitals set
forth above and the Exhibits attached hereto which are by this reference incorporated herein
and made a part hereof.

     (b) Buyer’s Indemnity. As defined in Section 5.2.

     (c) Buyer’s Representatives. As defined in Section 5.2.

     (d) Closing. The closing of the sale and purchase transaction contemplated by
this Agreement, as described in Article 11 of this Agreement.

     (e) Closing Date. March 19, 2007, as same may be extended by Seller pursuant
to the express provisions of Section 4.3(b) below.

     (f) Intentionally Omitted.

     (g) Contract Date. The date of mutual execution and delivery of an original,
fully executed counterpart of this Agreement, which date shall be set forth in the
introductory paragraph of this Agreement.

     (h) Contracts. All maintenance, service, security, supply, promotional,
utility service, equipment leases (for personal property not owned by Seller but used in
connection with the Property) and other contracts and agreements to which Seller is a party
relating to any component of the Property, specifically excluding, however, (i) the Leases,
(ii) the Fannin Ground Lease, and (iii) the Phoenix Tunnel Lease.

     (i) Deed. Collectively, (i) the special warranty deed (“Fannin Deed”) to be
delivered by BREOF Fannin to Buyer at the Closing conveying fee simple title to the Fannin
Fee Land and the Fannin Building (subject to the Fannin Ground Lease and all rights of the
ground lessor thereunder) to Buyer, and (ii) the special warranty deed (“Phoenix Deed”) to
be delivered by BREOF Phoenix to Buyer at the Closing conveying fee simple title to the
Phoenix Building Land, the Phoenix Parking Land, the Phoenix Building and the Phoenix
Parking Deck to Buyer.

     (j) Intentionally Omitted.

2

 

     (k) Due Diligence Materials. All documents and materials contained on that
certain website containing a web address of
https://www.peracon.com/Login.aspx?ReturnUrl=%2fAssets%2fAssetProfile.aspx%3fassetid%3d8763&a
ssetid=8763 to which Buyer has heretofore had, and currently has, access, containing the
documents and other materials generally described on Exhibit B attached hereto, to the
extent in Seller’s possession, together with those other documents and materials which
Seller has delivered or made available to Buyer for review. Seller makes no warranties or
representations concerning the information contained on the aforesaid website or in the
documents or materials delivered or made available to Buyer for review.

     (l) Earnest Money Deposit. The sum of Twenty-Three Million Four Hundred
Twenty-Four Thousand Three Hundred and 00/100 Dollars ($23,424,300.00),which shall be
deposited by Buyer with Escrowee, as escrowee. The Earnest Money Deposit shall be held, in
an interest bearing money market account as contemplated in Section 3.1 below, as earnest
money pursuant to the terms of this Agreement.

     (m) Environmental Laws. All current and future federal, state and local
statutes, regulations, ordinances, judgments, decrees and rules relating to (i) the
emission, discharge, release or threatened release of a Hazardous Material into the air,
surface water, groundwater or land; (ii) the manufacturing, processing, use, generation,
treatment, storage, disposal, transportation, handling, removal, remediation or
investigation of a Hazardous Material; or (iii) the protection of human health, safety or
the indoor or outdoor environment, including without limitation, the Clean Air Act, the
Federal Water Pollution Control Act, the Resource Conservation and Recovery Act, the
Comprehensive Environmental Response, Compensation and Liability Act, the Occupational
Safety and Health Act, all amendments thereto, all regulations promulgated thereunder, and
their state or local statutory and regulatory counterparts.

     (n) Escrowee. First American Title Insurance Company (through its office
located at 633 Third Avenue, New York, NY 10017).

     (o) Fannin Ground Lease. That certain ground lease described on Schedule
1.1(o) attached hereto.

     (p) Final Payment Date. As defined in Section 10.2(f).

     (q) Hazardous Material. Any solid, liquid or gaseous substance, chemical,
compound, product, byproduct, waste or material that is or becomes regulated, defined or
designated by any applicable federal, state or local governmental authority or by any
Environmental Law as hazardous, extremely hazardous, imminently hazardous, dangerous or
toxic, or as a pollutant or contaminant, and shall include, without limitation, asbestos,
asbestos-containing material, polychlorinated biphenyls, and oil, petroleum, petroleum
products and petroleum byproducts.

3

 

     (r) Improvements. Collectively, (i) the Fannin Building and BREOF Fannin’s
interest in any and all other buildings and improvements located on the Fannin Land, but
excluding any utility or other facilities owned by parties who have been granted easement
and other occupancy rights pursuant to any of the Permitted Title Exceptions (collectively,
the “Fannin Improvements”), and (ii) the Phoenix Building, the Phoenix Parking Deck and
BREOF Phoenix’s interest in any and all other buildings and improvements located on the
Phoenix Building Land and Phoenix Parking Land, but excluding any utility or other
facilities owned by parties who have been granted easement and other occupancy rights
pursuant to any of the Permitted Title Exceptions (collectively, the “Phoenix
Improvements”).

     (s) Inspections. As defined in Section 5.2.

     (t) Intangible Personal Property. Any and all intangible personal property of
every kind and character owned by Seller and used in connection with the operation of the
Real Property.

     (u) Land. Collectively, the Fannin Land and the Phoenix Land.

     (v) Leases. All leases, subleases, licenses and other forms of agreement
granting any party the right to use or occupancy of any portion of the Land and/or
Improvements, and all renewals, modifications, amendments, guarantees, and other agreements
affecting the same, specifically excluding, however, (i) the Fannin Ground Lease, (ii) the
Phoenix Tunnel Lease, and (iii) the Phoenix Tunnel Sublease (defined below).

     (w) Legal Requirements. All laws, statutes, codes, acts, ordinances, orders,
judgments, decrees, injunctions, rules, regulations, permits, licenses, authorizations,
orders, directions and requirements of all governments and governmental authorities having
jurisdiction of the Property (including, for purposes hereof, any local Board of Fire
Underwriters), and the operation thereof.

     (x) Licenses and Permits. All licenses, permits, franchises, certifications,
authorizations, approvals, certificates of occupancy and entitlements issued, approved or
granted by any governmental authority or body having jurisdiction over the Property and used
in connection with the operation, ownership or maintenance of the Property or any part
thereof.

     (y) Monetary Liens. As defined in Section 4.1.

     (z) Permitted Title Exceptions. Those exceptions to title to the Property and
other matters (i) disclosed or referenced in the Title Commitment (other than Monetary Liens
[defined below]), (ii) disclosed or referenced in the Survey or any Updated Survey [defined
below] (or which would be disclosed in any Updated Survey), and (iii) all matters arising
out of the acts or omissions of Buyer and those parties claiming by, through or under Buyer
or acting on behalf of Buyer.

4

 

     (aa) Personal Property. Collectively, the Tangible Personal Property and the
Intangible Personal Property.

     (bb) Phase I Study. As defined in Section 5.2.

     (cc) Phoenix Tunnel Lease. That certain Lease No. 12964 dated March 6, 1972 by
and between the City of Phoenix, as lessor, and BREOF Phoenix, as successor-in-interest to
the original named lessee, recorded as Docket 9313, Page 335 and also recorded in Docket
11078 pages 1291-1311 (inclusive), together with that certain Assignment of Lease dated
December 19, 2006 by and between JPMorgan Chase Bank, National Association (“JPMorgan”), as
assignor, and BREOF Phoenix, as assignee, recorded as Document No. 2007-0026645.

     (dd) Phoenix Tunnel Sublease. That certain Sublease Agreement dated December
19, 2006 by and between BREOF Phoenix, as sublandlord, and JPMorgan, as subtenant, and
relating to the demised premises under the Phoenix Tunnel Lease.

     (ee) Property. Collectively, the Real Property, the Personal Property, the
Contracts, the Licenses and Permits, and the Warranties.

     (ff) Purchase Price. Two Hundred Thirty-Four Million Two Hundred Forty-Three
Thousand and 00/100 Dollars ($234,243,000.00), plus or minus prorations as described in this
Agreement. Seller and Buyer hereby acknowledge and agree that, for purposes of this
Agreement, the Purchase Price shall be allocated as follows:

     (A) Property being sold by BREOF Fannin: $67,308,000.00; and

     (B) Property being sold by BREOF Phoenix: $166,935,000.00.

     (gg) Real Property. The Land and the Improvements, together with any and all
right, title and interest of Seller in and to all systems, facilities, fixtures, machinery,
equipment and conduits to provide fire protection, security, heat, exhaust, ventilation,
air-conditioning, electrical power, light, plumbing, refrigeration, gas, sewer, water and
other utilities servicing the Land and Improvements (including all replacements or additions
thereto between the Contract Date and the Closing Date); any and all assignable right, title
and interest of Seller in and to all privileges, rights, easements, hereditaments and
appurtenances thereto belonging; and any and all assignable right, title and interest of
Seller in and to any streets, alleys, passages and other rights-of-way included therein or
adjacent thereto (before or after any vacation thereof). The portion of the Real Property
which is owned and/or leased by BREOF Fannin is sometimes referred to herein as the “Fannin
Real Property” and the portion of the Real Property which is owned and/or leased by BREOF
Phoenix is sometimes referred to herein as the “Phoenix Real Property”.

     (hh) Seller Indemnified Parties. As defined in Section 5.2.

     (ii)  Structural Report. As defined in Section 5.2.

5

 

     (jj) Survey. Collectively, that certain (i) ALTA/ACSM Land Title Survey
Project No. 20060655-4 dated September 19, 2006, coordinated by Bock & Clark and prepared by
Red Plains Surveying Company (the “Fannin Survey”), and (ii) ALTA/ACSM Land Title Survey
Project No. 20060655-002 dated September 18, 2006, coordinated by Bock & Clark and prepared
by J.V. Surveying, L.L.C. (the “Phoenix Survey”).

     (kk) Tangible Personal Property. All machinery, supplies, equipment, fixtures,
furnishings and other tangible personal property of every kind and character owned by Seller
and situated in or upon the Real Property or any part thereof, and all replacements,
additions or accessories thereto between the Contract Date and the Closing Date, but
specifically excluding those items designated on Exhibit C attached hereto.

     (ll) Tenant Inducement Costs. All payments, costs and expenses required to be
paid or provided by Seller, as landlord, pursuant to a Lease including, without limitation,
tenant improvement costs, lease buyout costs, brokerage commissions, reimbursement of tenant
moving expenses and other out-of-pocket costs.

     (mm) Title Commitment. Collectively, that certain (i) Commitment for Title
Insurance Commitment No. 07R04073/GF No. 07R04073ND7 issued by First American Title
Insurance Company and containing an effective date of January 25, 2007 (“Fannin
Commitment”), and (ii) Commitment for Title Insurance No. NCS-278243AZ1 issued by First
American Title Insurance Company and containing an effective date of February 1, 2007
(“Phoenix Commitment”).

     (nn) Title Company. First American Title Insurance Company, at the same
address as for Escrowee.

     (oo) Title Policy. Collectively, (i) a basic form of CLTA Owner’s/Leasehold
Title Insurance Policy covering the Fannin Land and Fannin Improvements, issued by the Title
Company pursuant to the Fannin Commitment, including all standard and general exceptions and
exclusions raised in such form of owner’s/leasehold policy (“Fannin Policy”), and (ii) a
basic form of ALTA Owner’s/Leasehold Title Insurance Policy covering the Phoenix Land and
the Phoenix Improvements issued by the Title Company pursuant to the Phoenix Commitment,
including all standard and general exceptions and exclusions raised in such form of
owner’s/leasehold policy (“Phoenix Policy”).

     (pp) Warranties. All guarantees and warranties of contractors, materialmen,
manufacturers, mechanics or suppliers who have been engaged by Seller or any of its agents
to furnish labor, materials, equipment or supplies to all or any portion of the Property.

ARTICLE 2

PURCHASE AND SALE

     2.1 Purchase and Sale. Subject to the conditions and on the terms contained in this
Agreement:

6

 

     (a) Buyer agrees to purchase and acquire from Seller, and Seller agrees to sell and
transfer to Buyer (i) the Fannin Fee Land and the Fannin Building (subject to the Fannin
Ground Lease) by the Fannin Deed, (ii) the Phoenix Building Land, the Phoenix Parking Land,
the Phoenix Building and the Phoenix Parking Deck by the Phoenix Deed, and (iii) any and all
of Seller’s right, title and interest in the balance of the Real Property.

     (b) Buyer agrees to purchase and acquire from Seller, and Seller agrees to sell,
assign, convey and transfer to Buyer, any and all of Seller’s right, title and interest in
and to the following items: (i) the Fannin Ground Lease, (ii) the Phoenix Tunnel Lease,
(iii) the JPMorgan Leases (as defined below) and such other Leases as are entered into in
accordance with the terms of this Agreement, (iv) the Contracts, (v) the Licenses and
Permits, and (vi) the Warranties, but in each instance only to the extent assignable without
any fee payable to, or further consent from, any third party.

     (c) Buyer agrees to purchase and acquire from Seller, and Seller agrees to sell,
convey, assign and transfer to Buyer, all of Seller’s right, title and interest in and to
the Personal Property, by good and sufficient quit-claim bill of sale, specifically
excluding any warranties of quality, merchantability or fitness for a particular purpose.

ARTICLE 3

DEPOSIT AND PURCHASE PRICE

     3.1 Earnest Money Deposit in Escrow. Concurrent with Seller’s and Buyer’s execution
and delivery of this Agreement, the parties shall establish a strict joint order escrow with
Escrowee, and Buyer shall cause the Earnest Money Deposit to be deposited therein. From and after
the Contract Date, the Earnest Money Deposit shall be deemed earned by Seller and shall be
completely non-refundable to Buyer except as otherwise expressly provided herein. The Earnest
Money Deposit (and interest thereon net of any investment charges) shall be applied against the
Purchase Price at Closing, as more specifically provided in Section 3.2 below. The Earnest Money
Deposit shall also secure Buyer’s obligations contained in Section 5.2; any release of the Earnest
Money shall be conditioned upon Buyer paying the amounts due or having performed the obligations
specified in such section. Escrowee shall be directed by the parties to invest the entire Earnest
Money Deposit in an interest bearing money market account, with interest thereon being applied on
account of the Purchase Price at Closing, or if Closing does not occur for any reason, then such
interest shall be paid to the party entitled to the Earnest Money Deposit hereunder. The parties
shall direct Escrowee to disburse the Earnest Money Deposit with interest earned thereon (net of
any investment charges), to the party entitled to the same as set forth in this Agreement, or as
otherwise provided in Section 3.3 below. The refund of the Earnest Money Deposit, at the
discretion of Seller, may be conditioned upon the execution and delivery by Buyer to Seller of an
instrument in recordable form that disclaims any and all continuing right, title and interest in
and to the Property.

     3.2 Purchase Price and Handling of Earnest Money Deposit. At the Closing, upon the
terms and conditions set forth in this Agreement, Buyer shall pay the Purchase Price, subject to
prorations and adjustments, by wire transfer of collected federal funds. The Earnest Money Deposit
(and interest thereon net of any investment charges) shall be (i) paid to Seller and

7

 

applied against the Purchase Price at Closing, or (ii) disbursed in accordance with the terms
of this Agreement if Closing does not occur as contemplated hereby, subject to the provisions
contained in Section 3.1.

     3.3 Closing Escrow. On or prior to the Closing Date, the parties shall establish a
deed and money escrow with the Escrowee through which the transaction contemplated hereby shall be
closed. Upon opening of said escrow, the Earnest Money Deposit (plus interest thereon net of any
investment charges) shall be disbursed from the above-described strict joint order escrow with
Escrowee and deposited in the deed and money escrow. The escrow instructions for the deed and
money escrow shall be in the form customarily used by the Escrowee with such special provisions
added thereto as may be required to conform to the provisions of this Agreement. Said deed and
money escrow shall be auxiliary to this Agreement and this Agreement shall not be merged into nor
in any manner superseded by said deed and money escrow. The escrow costs and fees for each of the
escrow accounts described in this Article 3 shall be equally divided between Buyer and Seller.

ARTICLE 4

TITLE AND SURVEY

     4.1 Title. Buyer hereby acknowledges that (i) Seller has heretofore delivered to
Buyer the Title Commitment, together with a copy of each recorded document raised as an exception
therein, (ii) all exceptions to title referenced in the Title Commitment (other than Monetary
Liens) are acceptable to Buyer and shall be deemed Permitted Title Exceptions hereunder, and (iii)
except for Monetary Liens, Seller shall have no obligation to have any exceptions to title
referenced in the Title Commitment removed from the Title Commitment or insured over by the Title
Company. Notwithstanding the foregoing, any delinquent real property taxes, deeds of trust,
mortgages and mechanic’s liens arising out of the acts of Seller, other than liens created by,
through or under tenants or securing the rights of other parties under the Contracts (collectively,
“Monetary Liens”), disclosed on any Title Commitment shall be automatically deemed unpermitted
exceptions, and Seller shall cause all such Monetary Liens disclosed in the Title Commitment to be
removed therefrom or insured over by the Title Company on or before the Closing Date. On the
Closing Date, Seller shall cause the Title Company to issue the Title Policy (or “marked-up” title
commitment unconditionally committing the Title Company to issue such Title Policy) to Buyer,
pursuant to and in accordance with the Title Commitment, insuring, as applicable, Buyer’s fee
simple title or leasehold interest in the Land and Improvements thereon as of the Closing Date,
subject only to the Permitted Title Exceptions and such other exceptions as Buyer may approve (or
be deemed to have approved) pursuant to this Agreement. Buyer shall have the right, at any time
prior to Closing, to cause the Title Company to issue such endorsements (“Buyer Endorsements”) to
the Title Policy as Buyer shall deem necessary (including, without limitation “extended coverage”),
at Buyer’s sole cost and expense and without obligation on the part of Seller to obtain such Buyer
Endorsements; provided that Seller shall make good faith efforts to assist Buyer in obtaining such
Buyer Endorsements, provided, further, however, that (i) Seller shall have no obligation to obtain
such Buyer Endorsements, to incur any additional costs in connection with procuring such Buyer
Endorsements or to obtain any consents, approvals or estoppel certificates from third parties in
connection with procuring such Buyer Endorsements, and (ii) Buyer’s ability or

8

 

inability to obtain such Buyer Endorsements shall not constitute a condition precedent to
Buyer’s obligations under this Agreement.

     4.2 Survey. Buyer hereby acknowledges that (i) Seller has heretofore delivered the
Survey to Buyer, (ii) Buyer has heretofore had an opportunity to obtain, at its expense, a new or
an updated survey of the Land (in any such case, an “Updated Survey”), (iii) all matters disclosed
on the Survey and any Updated Survey (or which would be disclosed on any Updated Survey) are
acceptable to Buyer and shall be deemed Permitted Title Exceptions hereunder, and (iv) Seller shall
have no obligation to have any matters disclosed on the Survey or any Updated Survey (or which
would be disclosed on any Updated Survey) removed from or insured over by the Title Company.

     4.3 Tenant Estoppels. Promptly following the Contract Date, Seller shall deliver
estoppel letters to JPMorgan (i.e., but not any subtenants, licensees or other occupants) as tenant
under the JPMorgan Leases, in each instance conforming with the estoppel requirements of the
applicable JPMorgan Lease (in each such instance, the “Required Lease Estoppel Form”). In that
regard, Seller and Buyer hereby acknowledge that JPMorgan Chase Bank, National Association
(“JPMorgan”) is the sole tenant at each of the Fannin Building and the Phoenix Building and that
JPMorgan may have subtenants. Promptly after receipt from JPMorgan, Seller shall deliver such
tenant’s estoppel letter to Buyer. All estoppel letters shall be dated not earlier than thirty
(30) days prior to the Closing Date (provided, however, that if the initially-scheduled Closing
Date set forth in this Agreement is extended for any reason [other than a Seller default hereunder,
a casualty or a condemnation or pursuant to Seller’s right to extend the Closing Date under Section
4.3(b) below] then any estoppel letter which is dated within thirty (30) days of said
initially-scheduled Closing Date shall be deemed to satisfy the requirements of this Section 4.3
concerning the required date of estoppel letters, and Seller shall have no obligation to cause same
to be dated-down or re-executed). Buyer’s obligation to proceed to Closing shall be conditioned
upon satisfaction of the following conditions, provided that Buyer may in its sole discretion elect
to waive failure by Seller to satisfy any particular condition:

     (a) Seller shall use good faith efforts to deliver to Buyer, on or before the Closing
Date, (i) the Required Lease Estoppel Form executed by JPMorgan with respect to its Lease at
the Fannin Building (with such non-material modifications or disclosures as JPMorgan shall
make thereto), and (ii) the Required Lease Estoppel Form executed by JPMorgan with respect
to its Lease at the Phoenix Building (with such non-material modifications or disclosures as
JPMorgan shall make thereto) (collectively, the “Estoppel Threshold”). For purposes of the
preceding sentence, a “non-material” modification or disclosure shall mean a modification or
disclosure which is not inconsistent with any of Seller’s representations or warranties
contained in this Agreement (except to the extent that the subject of such inconsistency has
been heretofore otherwise disclosed to Buyer in this Agreement, the Due Diligence Materials
or otherwise) and does not allege a default.

     (b) If, as of the initially-scheduled Closing Date hereunder, Buyer has not received
estoppel letters executed from JPMorgan with respect to its Leases at each of the Fannin
Building and the Phoenix Building so as to satisfy the Estoppel Threshold, Seller may in its
sole discretion elect, by written notice thereof delivered to Buyer on or before

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said initially-scheduled Closing Date, to extend the initially-scheduled Closing Date
to a date certain which is not later than May 18, 2007 in order for Seller to continue to
attempt to satisfy the Estoppel Threshold.

If, on or before the Closing Date (as same may be extended as described above), Seller is unable to
obtain and deliver sufficient tenant estoppel letters to satisfy the Estoppel Threshold, then
Seller will not be in default by reason thereof, but Buyer shall, by notice given to Seller before
the Closing, elect, as its sole recourse therefor, either (i) to waive said conditions and proceed
with the Closing, accepting the Property subject thereto, or (ii) to terminate this Agreement, in
which event the Earnest Money Deposit shall be returned to Buyer, subject to the disbursement and
payment release conditions set forth in Section 3.1, and the parties shall have no further
liability or obligations to each other hereunder (other than those liabilities and obligations that
expressly survive a termination of this Agreement). Buyer’s failure to elect either (i) or (ii)
above, in writing to Seller, on or before the Closing Date (as same may be extended as aforesaid)
shall be deemed an election of option (i) set forth in this Section 4.3.

     4.4 Fannin Ground Lessor and Phoenix Estoppels. Promptly following the Contract Date,
Seller shall deliver an estoppel letter to each of the landlords under the Fannin Ground Lease and
the Phoenix Tunnel Lease conforming with the estoppel requirements, if any, under each such lease
(in each such instance, the “Required Ground Lease Estoppel Form”). Promptly after receipt from
each said landlord, Seller shall deliver such landlord’s estoppel letter to Buyer. All estoppel
letters shall be dated not earlier than thirty (30) days prior to the Closing Date (provided,
however, that if the initially-scheduled Closing Date set forth in this Agreement is extended for
any reason [other than a Seller default hereunder, a casualty or a condemnation or pursuant to
Seller’s right to extend the Closing Date under Section 4.3(b) above] then any estoppel letter
which is dated within thirty (30) days of said initially-scheduled Closing Date shall be deemed to
satisfy the requirements of this Section 4.4 concerning the required date of estoppel letters, and
Seller shall have no obligation to cause same to be dated-down or re-executed). Buyer’s obligation
to proceed to Closing shall be conditioned upon satisfaction of the following conditions, provided
that Buyer may in its sole discretion elect to waive failure by Seller to satisfy any particular
condition:

     (a) Seller shall use good faith efforts to deliver to Buyer, on or before the Closing
Date, the Required Ground Lease Estoppel Form executed by the landlords under each of the
Fannin Ground Lease and the Phoenix Tunnel Lease (each with such non-material modifications
or disclosures as the applicable landlord shall make thereto) (collectively, the “Ground
Lessor Estoppel Threshold”). For purposes of the preceding sentence, a “non-material”
modification or disclosure shall mean a modification or disclosure which is not inconsistent
with any of Seller’s representations or warranties contained in this Agreement (except to
the extent such inconsistency has been heretofore otherwise disclosed to Buyer in this
Agreement, the Due Diligence Materials or otherwise) and does not allege a default.

     (b) If Buyer has not received estoppel letters executed from each of the landlords
under the Fannin Ground Lease and the Phoenix Tunnel Lease so as to satisfy the Estoppel
Threshold, Seller may at its election in its sole discretion substitute for any unsigned
landlord estoppel letters required to satisfy the Estoppel Threshold, an estoppel

10

 

certificate in the form attached hereto as Exhibit D-1 (the “Seller Ground Lessor
Estoppel Certificate”), completed, executed and delivered by Seller, whereby Seller
certifies the accuracy, to Seller’s knowledge (as defined below), of the information
contained in the estoppel letters as submitted to such landlords, which certification shall
survive the Closing for a period of six (6) months; provided, however, that Seller’s
certifications under the Seller Ground Lessor Estoppel Certificate shall in no event be
deemed to be a certification with respect to matters relating to the physical or
environmental condition of the Property. In the event that, following the Closing Date,
Seller or Buyer obtains the Required Ground Lease Estoppel Form with respect to the Fannin
Ground Lease or the Phoenix Tunnel Lease for which Seller delivered a Seller Ground Lessor
Estoppel Certificate, then to the extent that such Required Ground Lease Estoppel Form
discloses matters which are consistent with those matters set forth in the applicable Seller
Ground Lessor Estoppel Certificate, Seller will be automatically released from any liability
or obligation under the Seller Ground Lessor Estoppel Certificate with respect to said
disclosed consistent matters.

If Seller is unable to obtain and deliver sufficient landlord estoppel letters (and/or in Seller’s
sole discretion, Seller Ground Lease Estoppel Certificates) to satisfy the Ground Lessor Estoppel
Threshold, then Seller will not be in default by reason thereof, but Buyer shall, by notice given
to Seller before the Closing, elect, as its sole recourse therefor, either (i) to waive said
conditions and proceed with the Closing, accepting the Property subject thereto, or (ii) to
terminate this Agreement, in which event the Earnest Money Deposit shall be returned to Buyer,
subject to the disbursement and payment release conditions set forth in Section 3.1, and the
parties shall have no further liability or obligations to each other hereunder (other than those
liabilities and obligations that expressly survive a termination of this Agreement). Buyer’s
failure to elect either (i) or (ii) above, in writing to Seller, on or before the Closing Date
shall be deemed an election of option (i) set forth in this Section 4.4.

ARTICLE 5

DUE DILIGENCE

     5.1 Due Diligence Materials. The parties hereby acknowledge that Seller has
heretofore furnished to Buyer (or made available to Buyer), copies of the Due Diligence Materials,
to the extent in the possession of Seller or its affiliates. Seller makes no representation or
warranty concerning the accuracy or completeness of any of the Due Diligence Materials.

     5.2 Inspection. Buyer hereby acknowledges that Buyer, its officers, agents and
employees (collectively, “Buyer’s Representatives”) have heretofore had access to, entry upon and
the opportunity to examine, inspect, measure and test the Real Property (herein collectively, the
“Inspections”) including, without limitation, the opportunity to perform invasive testing of the
Real Property, a Phase I environmental site assessment of the Property (the “Phase I Study”) and an
engineer’s structural report respecting the Improvements (the “Structural Report”). The costs of
conducting and obtaining any such Phase I Study and the Structural Report or of otherwise
performing any other Inspections shall be the responsibility of Buyer. From and after the Contract
Date through the Closing (or earlier termination of this Agreement), Buyer’s

11

 

Representatives may perform additional Inspections in accordance with the provisions of this
Agreement, provided, however, that said access by Buyer’s Representatives to perform said
Inspections shall be subject in all respects to Seller’s and the tenants’ rights under the Leases
at the Real Property. Further, any such entry by Buyer’s Representatives shall be in compliance
with all permits, codes, regulations, rules, laws, statutes and other requirements of any
governmental body, agency or authority having jurisdiction over the Property, as well as the
requirements of any Leases, ground leases and any private covenants, restrictions and easements of
record. Any invasive testing of the Real Property (including the scope thereof and the identity of
the Buyer’s Representatives performing such testing) shall require Seller’s consent, which consent
may be withheld in Seller’s sole discretion (subject in all respects, however, to the rights of the
tenants under the Leases at the Real Property to permit or consent to same). Buyer shall promptly
deliver to Seller a copy of any written report or study relating to the Property prepared for Buyer
by any third party consultant or other third party Buyer Representative. Any entry upon the Land
or Improvements by Buyer or Buyer’s Representatives for the purpose of conducting such Inspections
shall be upon not less than twenty-four (24) hours prior notice to Seller prior to any entry upon
the Land or Improvements for the purpose of conducting such Inspections, and shall be subject, in
any event, to prior scheduling and coordination with Seller. At Seller’s election, a
representative of Seller shall be present during any entry by Buyer or Buyer’s Representatives upon
the Land or Improvements to conduct the Inspections. Buyer shall not cause or permit any
mechanic’s liens, materialmen’s liens or other liens to be filed against the Property as a result
of the Inspections. Buyer shall furnish Seller with evidence of commercial general liability
insurance having coverage limits of at least Two Million and 00/100 US Dollars ($2,000,000),
together with such other insurance as Seller may reasonably require Buyer to carry against
liabilities which may arise in connection with the Inspections. All Inspections shall be performed
in a manner that will not disturb the ongoing operations at the Real Property, nor cause any
damage, loss, disturbance to business, cost or expense to, or claims against, Seller or the
Property. Prior to Closing (or earlier termination of this Agreement), Buyer shall not approach,
contact or involve itself in any discussions or negotiations with any tenant of the Real Property
under any Lease or with any other occupant of the Real Property, without Seller’s prior written
consent (which may be withheld in Seller’s sole discretion) and without Seller or its
representative being present thereat. Buyer shall in no event (i) request or initiate any
inspections of the Property by any governmental or quasi-governmental entities or agencies
(provided, however, that the foregoing shall not prohibit Buyer from seeking from applicable
governmental or quasi-governmental entities or agencies customary zoning compliance letters), and
(ii) involve itself in any discussions with governmental or quasi-governmental entities concerning
the Property without Seller being present at such discussions and pre-approving (in its sole
discretion) the scope and content of such discussions. Buyer shall promptly repair and restore any
damage to the Property caused by the prior or any subsequent entry upon the Land or Improvements by
Buyer or the other Buyer’s Representatives. Buyer shall indemnify, defend and hold harmless Seller
and Seller’s officers, directors, shareholders, partners, members, managers, tenants, agents and
employees (collectively, the “Seller Indemnified Parties”), from and against any and all actions,
losses, costs, damages, claims, liabilities, and expenses (including litigation expenses and court
costs and reasonable attorney’s fees) brought, sought or incurred by or against any of the Seller
Indemnified Parties resulting from, arising out of, or in any way relating to, entry upon the Land
or Improvements by Buyer or any of the other Buyer’s Representatives or otherwise in any way
related to the Inspections, whether conducted prior to,

12

 

as of or subsequent to the Contract Date, or any violation of the provisions of this Section
5.2. The foregoing indemnification and repair and restoration obligations (herein collectively
referred to as “Buyer’s Indemnity”) shall expressly survive the Closing or any earlier termination
of this Agreement.

     5.3 Due Diligence. Buyer hereby acknowledges that (i) it has heretofore had ample
opportunity to review and analyze the Due Diligence Materials, the Title Commitment, the Survey,
any Updated Survey, the results of the Inspections and all other matters respecting the Property,
and (ii) any future Inspections Buyer may conduct are solely being permitted as an accommodation to
Buyer and the results of same shall in no event be deemed to grant Buyer any further contingency
under this Agreement or serve as the basis for any right of Buyer to terminate this Agreement.
Buyer hereby acknowledges that it is satisfied with all matters described above in this Section 5.3
and all other matters respecting the Property and the transaction contemplated by this Agreement
generally, and that, except as otherwise expressly stated in this Agreement, Buyer shall have no
right to terminate this Agreement. The parties shall proceed to close the transaction contemplated
by this Agreement as provided herein, and the Earnest Money Deposit shall be deemed non-refundable
(except as otherwise expressly provided herein).

ARTICLE 6

REPRESENTATIONS AND WARRANTIES

     6.1 Representation and Warranties of Seller. To induce Buyer to execute, deliver and
perform this Agreement, Seller hereby represents and warrants to Buyer the following on and as of
the Contract Date:

     (a) Authority. BREOF Fannin is a duly organized and validly existing limited
partnership in good standing under the laws of the State of Delaware, and BREOF Phoenix is a
duly organized and validly existing limited liability company in good standing under the
laws of the state of Delaware. Seller has full capacity, right, power and authority to
execute, deliver and perform this Agreement and all documents to be executed by Seller
pursuant hereto, and all required action and approvals therefor have been duly taken and
obtained. The individuals signing this Agreement and all other documents executed or to be
executed pursuant hereto on behalf of Seller are and shall be duly authorized to sign the
same on Seller’s behalf and to bind Seller thereto. This Agreement and all documents to be
executed pursuant hereto by Seller are and shall be binding upon and enforceable against
Seller in accordance with their respective terms.

     (b) Contracts. Attached as Exhibit E to this Agreement and incorporated herein
by this reference is a true, correct and complete schedule in all material respects of all
currently existing Contracts of which Seller has knowledge. Except as may be disclosed in
the Due Diligence Materials or other documents delivered or made available to Buyer, Seller
has not received any currently effective notice in writing of any uncured material breach or
default under any of the Contracts, the existence of which would have a material adverse
effect on the operation or value of the Property. True, correct and complete copies of all
currently existing Contracts (including, without limitation, all

13

 

amendments, modifications and agreements pertaining thereto) have been made available
to Buyer, as and to the extent same are in the possession of Seller and its affiliates.

     (c) Fannin Ground Lease, Phoenix Tunnel Lease and Phoenix Tunnel Sublease.
Except as may be disclosed in the Due Diligence Materials or other documents delivered or
made available to Buyer, Seller has not received any currently effective notice in writing
of any uncured material breach or default under the Fannin Ground Lease, the Phoenix Tunnel
Lease or the Phoenix Tunnel Sublease which would have a material adverse effect on the
operation or value of the Property. True, correct and complete copies of the Fannin Ground
Lease, the Phoenix Tunnel Lease and the Phoenix Tunnel Sublease (including, without
limitation, all amendments, modifications and agreements pertaining thereto) have been made
available to Buyer, as and to the extent same are in the possession of Seller and its
affiliates.

     (d) Licenses and Permits and Warranties. Seller has heretofore delivered to
Buyer (or made available to Buyer as part of the Due Diligence Materials) all currently
existing Licenses and Permits and Warranties which are currently in Seller’s possession.
Except as disclosed in the Due Diligence Materials, Seller has not received any currently
effective notice in writing of any uncured material breach or default under any of the
Licenses and Permits or the Warranties, the existence of which would have a material adverse
effect on the operation or value of the Property.

     (e) Violations of Laws. Except as disclosed in Exhibit F, Seller has not
received any currently effective notice in writing from any applicable governmental
authority of any violation of any Legal Requirements pertaining to the Property which has
not been entirely corrected.

     (f) Litigation. Except as set forth on Exhibit G to this Agreement and
incorporated herein by this reference, there is no pending litigation or other proceeding
against Seller or, to Seller’s knowledge, related to the Property (including without
limitation any condemnation action), other than claims which are fully covered by insurance.

     (g) Condemnation. To Seller’s knowledge, except as may be set forth in the Due
Diligence Materials, Seller has not received any written notice from any governmental or
quasi-governmental authority regarding an existing or pending condemnation of any part of
the Real Property.

     (h) No Conflict or Violation. Neither the execution, delivery or performance
of this Agreement by Seller, nor the consummation of the transactions contemplated hereby
will (a) violate or conflict with any provision of the organizational documents of Seller,
or (b) violate any order, judgment, injunction, award or decree of any court or arbitration
body, by or to which Seller or the Property are or may be bound or subject.

     (i) Bankruptcy. No voluntary, and to Seller’s knowledge no involuntary,
attachments, execution proceedings, assignments for the benefit of creditors, insolvency,

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bankruptcy, reorganization or other insolvency related proceedings are pending against
Seller.

     (j) FIRPTA Representation. Seller is not a “foreign person” within the meaning
of Section 1445 of the Code (as defined below).

     (k) Leases. Attached as Exhibit H-1 to this Agreement is a true, correct and
complete description in all material respects of those Leases between Seller, as landlord,
and JPMorgan, as tenant (collectively, the “JPMorgan Leases”). True, correct and complete
copies of said JPMorgan Leases (including, without limitation, all amendments, modifications
and agreements pertaining thereto) have been made available to Buyer, as and to the extent
same are in the possession of Seller and its affiliates. To Seller’s knowledge, attached as
Exhibit H-2 attached hereto is a complete list in all material respects of all other Leases
at the Property.

     (l) Leasing/Brokerage Commissions. To Seller’s knowledge, Seller is not liable
or responsible for any leasing or brokerage commissions in connection with the JPMorgan
Leases.

     (m) Employees. Seller has not employed any persons in connection with the
management, operation or maintenance of the Property.

     6.2 Limitations. Seller’s liability for breaches of the representations and
warranties contained in this Agreement and for other matters shall be limited as follows:

     (a) Generally. All representations and warranties of Seller set forth in
Section 6.1 above, as well as Buyer’s right to enforce its remedies hereunder for any breach
of the same, shall survive the Closing for six (6) months (i.e., meaning that Buyer must
give notice in writing to Seller of such claim, in reasonable detail, prior to the
expiration of said 6-month period and commence a claim therefor in a court of competent
jurisdiction within thirty (30) days thereafter). In the event that Buyer has knowledge,
through its due diligence investigations or otherwise, that any of the representations or
warranties made by Seller under this Agreement were not true or correct when made, and if
Buyer nevertheless closes the transaction contemplated by this Agreement, then Buyer shall
be deemed to have waived any such representation and warranty and shall have no further
claim against Seller with respect thereto. Further, Buyer shall have no recourse against
Seller to enforce or seek damages (i.e., in each case, whether under Section 8.1(c) below,
Section 12.2 below or otherwise) for any breach of representations and warranties unless the
total damage resulting from such breaches, in the aggregate (i.e., irrespective of whether
Buyer had knowledge of same before or after Closing), exceeds Two Million and 00/100 US
Dollars ($2,000,000.00) (provided that once such threshold amount has been reached, Buyer
shall be entitled to recourse against Seller for the dollar value of all aggregate claims,
above said threshold amount), subject in any event to the other terms, conditions and
limitations set forth in this Agreement.

     (b) Seller’s Knowledge. As used herein, the phrase “to Seller’s knowledge” and
words of similar import shall mean the actual, current knowledge as of the Contract

15

 

Date of Steven H. Ganeless, being the President of BREOF BNK LLC, a Delaware limited
liability company, which entity is the sole member of BREOF Phoenix and the sole member of
the general partner of BREOF Fannin.

     (c) Buyer’s Knowledge. For purposes hereof, Buyer’s “knowledge” or “actual
knowledge” shall be deemed to be the actual knowledge of each of Clifford E. Lai (“Lai”)
(i.e., being the President and Chief Executive Officer of Crystal River Capital, Inc.
(“Crystal”), which is the parent company of Buyer), Robin Baker (“Baker”) (i.e., being an
employee of Hyperion Brookfield Asset Management, Inc. (“Hyperion”), which is the parent
company of the external manager of Crystal, which in turn is the parent company of Buyer)
and Ann Smith (“Smith”) (i.e., also being an employee of Hyperion), in each instance after
inquiry of those employees and consultants of Buyer, Hyperion and Crystal that have
conducted the due diligence investigation on behalf of Buyer, provided that each of Lai,
Baker and Smith shall also be deemed to have actual knowledge of all matters disclosed by
the Due Diligence Materials and any other documentation of Seller which was delivered to, or
make available for review by, Buyer, Hyperion or Crystal.

     (d) Aggregate Liability. Except for Seller’s obligations under Article 13 and
Seller’s reproration obligations under Article 10 and Seller’s obligations under any Seller
Ground Lessor Estoppel Certificate and without limiting Buyer’s specific performance remedy
under Section 12.2, Seller’s aggregate liability to Buyer under this Agreement and under any
of the other provisions contained in the documents being delivered pursuant to Section 11.2
hereof (other than any Seller Ground Lessor Estoppel Certificate) shall in no event exceed
Four Million and 00/100 US Dollars ($4,000,000.00).

     (e) No Liability for Consequential or Punitive Damages. Seller shall in no
event be liable to Buyer under this Agreement and under any of the documents being delivered
pursuant to Section 11.2 hereof for consequential, special or punitive damages.

     6.3 Representations and Warranties of Buyer. To induce Seller to execute, deliver and
perform this Agreement, Buyer hereby represents and warrants to Seller the following on and as of
the Contract Date:

     (a) Authority. Buyer is a duly organized and validly existing limited
liability company in good standing under the laws of the State of Delaware. Buyer has full
capacity, right, power and authority to execute, deliver and perform this Agreement and all
documents to be executed by Buyer pursuant hereto, and all required action and approvals
therefor have been duly taken and obtained. The individuals signing this Agreement and all
other documents executed or to be executed pursuant hereto on behalf of Buyer are and shall
be duly authorized to sign the same on Buyer’s behalf and to bind Buyer thereto. This
Agreement and all documents to be executed pursuant hereto by Buyer are and shall be
binding upon and enforceable against Buyer in accordance with their respective terms.

16

 

     (b) No Conflict or Violation. Neither the execution, delivery or performance
by Buyer of this Agreement, nor the consummation of the transaction contemplated hereby
will: (a) violate or conflict with any provision of Buyer’s organizational documents; or
(b) violate any order, judgment, injunction, award or decree of any court or arbitration
body, or any other body, by or to which Buyer is or may be bound or subject.

     (c) Approvals. No approval or consent of any governmental, administrative or
regulatory body or any other person or entity is required for the execution, delivery or
performance by Buyer of this Agreement, or any related documents or instruments, to which
Buyer is a party.

     (d) Bankruptcy. No voluntary, and to Buyer’s knowledge no involuntary,
attachments, execution proceedings, assignments for the benefit of creditors, insolvency,
bankruptcy, reorganization or other insolvency-related proceedings are pending against
Buyer.

     All representations and warranties of Buyer set forth in this Section 6.3 as well as Seller’s
right to enforce its remedies hereunder for any breach of the same, shall survive the Closing for a
period of six (6) months (i.e., meaning that Seller must give notice in writing to Buyer of such
claim, in reasonable detail, prior to the expiration of said 6-month period and commence a claim
therefor in a court of competent jurisdiction within thirty (30) days thereafter).

     6.4 AS-IS. EXCEPT FOR THOSE REPRESENTATIONS AND WARRANTIES SET FORTH IN SECTION 6.1
ABOVE AND IN SECTION 13.1 BELOW, BUYER ACKNOWLEDGES THAT IT IS NOT RELYING ON ANY REPRESENTATIONS
OR WARRANTIES WHATSOEVER BY SELLER OR ANY AGENT OR EMPLOYEE THEREOF REGARDING THE PROPERTY
(INCLUDING, WITHOUT LIMITATION, ITS PHYSICAL CONDITION, ITS SUITABILITY FOR ANY PARTICULAR PURPOSE,
ITS COMPLIANCE WITH LAWS [INCLUDING, WITHOUT LIMITATION, ENVIRONMENTAL LAWS, OR THE ABSENCE OF
HAZARDOUS SUBSTANCES THEREUPON]), AND SELLER EXPRESSLY DISCLAIMS ANY AND ALL SUCH REPRESENTATIONS
AND WARRANTIES, EXPRESS OR IMPLIED, EXCEPT FOR ANY LIMITED WARRANTIES CONTAINED IN SECTION 6.1
ABOVE AND IN SECTION 13.1 BELOW. EXCEPT FOR THOSE REPRESENTATIONS AND WARRANTIES SET FORTH IN
SECTION 6.1 ABOVE, BUYER SHALL ACCEPT THE PROPERTY IN ITS “AS IS”, “WHERE IS”, “WITH ALL FAULTS”
CONDITION, AND SELLER HEREBY DISCLAIMS ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR
PURPOSE, EXPRESS OR IMPLIED.

     EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN THIS AGREEMENT, SELLER MAKES NO REPRESENTATION OR
WARRANTY AS TO THE TRUTH, ACCURACY OR COMPLETENESS OF ANY MATERIALS, DATA OR OTHER INFORMATION
DELIVERED OR MADE AVAILABLE BY SELLER TO BUYER IN CONNECTION WITH THE TRANSACTION CONTEMPLATED
HEREBY (INCLUDING, WITHOUT LIMITATION, THE DUE DILIGENCE MATERIALS).

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     BUYER ACKNOWLEDGES THAT IT IS A SOPHISTICATED REAL ESTATE BUYER WHO HAS HERETOFORE HAD OPEN
ACCESS TO, AND SUFFICIENT TIME TO REVIEW, ALL INFORMATION, DOCUMENTS, AGREEMENTS, STUDIES AND TESTS
RELATING TO THE PROPERTY THAT BUYER DEEMED NECESSARY TO REVIEW IN ITS SOLE DISCRETION, AND HAS
CONDUCTED A COMPLETE AND THOROUGH INSPECTION, ANALYSIS AND EVALUATION OF THE PROPERTY, INCLUDING
BUT NOT LIMITED TO ENVIRONMENTAL TESTING. BUYER HEREBY RELEASES SELLER, ITS CONSTITUENT OWNERS,
AND THEIR RESPECTIVE AGENTS AND EMPLOYEES, FROM ANY AND ALL LIABILITY, RESPONSIBILITY, CLAIMS,
DAMAGES, LOSSES AND EXPENSES ARISING OUT OF OR RELATED TO THE CONDITION OF THE PROPERTY OR ITS
SUITABILITY FOR ANY PURPOSE, EXCEPT FOR ANY LIABILITY OF SELLER EXPRESSLY SET FORTH HEREIN.

     BUYER HAS UNDERTAKEN SUCH INVESTIGATION AS BUYER DEEMED NECESSARY TO MAKE BUYER FULLY AWARE OF
THE CONDITION OF THE PROPERTY AS WELL AS ALL FACTS, CIRCUMSTANCES AND INFORMATION WHICH MAY AFFECT
THE USE AND OPERATION OF THE PROPERTY, AND BUYER COVENANTS AND WARRANTS TO SELLER THAT BUYER HAS
RELIED AND SHALL RELY, EXCEPT TO THE EXTENT OF SELLER’S REPRESENTATIONS AND WARRANTIES CONTAINED IN
SECTION 6.1 ABOVE AND IN SECTION 13.1 BELOW, SOLELY ON BUYER’S OWN DUE DILIGENCE INVESTIGATION IN
DETERMINING TO PURCHASE THE PROPERTY. THE PROVISIONS OF THIS SECTION 6.4 SHALL SURVIVE THE CLOSING
OR EARLIER TERMINATION OF THIS AGREEMENT AND SHALL BE INCORPORATED INTO THE CLOSING DOCUMENTS TO BE
DELIVERED AT CLOSING.

     6.5 Release. Without limiting the provisions of Section 6.4 above, as a continuing
obligation surviving the Closing and the transfer and conveyance of the Property hereunder, Buyer
hereby acknowledges and agrees that, effective upon Closing, Buyer shall be deemed to have
covenanted and agreed to (i) release Seller and Seller’s “Releasees” (as hereinafter defined) from
and against any and all loss, damage, claim, costs and expense (including, without limitation,
actual attorneys’ fees, charges and costs) and any other liability whatsoever, whether foreseen or
unforeseen, arising out of or relating to the physical condition of the Property or any portion
thereof (including, without limitation, the environmental condition of the Property), regardless of
whether such condition arose or came into existence before, on or after the Closing Date; and (ii)
defend, indemnify and hold harmless Seller and Seller’s Releasees from and against any and all
loss, damage, claim, costs and expense (including, without limitation, actual attorneys’ fees,
charges and costs) and any other liability whatsoever, whether foreseen or unforeseen, arising out
of or relating to the physical condition of the Property or any portion thereof (including, without
limitation, the environmental condition of the Property), but only to the extent such condition
arose or came into existence (x) prior to the date Seller acquired title to the Property, or (y)
from and after the Closing Date hereunder. Seller’s “Releasees” shall mean Seller, its members,
and their respective successors and assigns (including, without limitation, an accommodation party
substituted as Seller for purposes of effecting a like-kind exchange), officers, directors,
managers, agents, employees, attorneys, shareholders, and the parents, subsidiaries and affiliated
companies of same. Without limiting the foregoing, from and after the execution of this Agreement,
the provisions of this Section 6.5 shall continue to be effective with

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respect to each Seller’s Releasee irrespective of whether thereafter such Releasee assigns or
has purported to assign or otherwise dispose of its interest or any portion of its interest, under
this Agreement or in the Property.

ARTICLE 7

SELLER’S COVENANTS; JP SUBLEASE LETTER AGREEMENT

     7.1 Covenants. Seller covenants and agrees to the following:

     (a) Title. Except as otherwise specifically contemplated in this Agreement or
as may be required by Legal Requirements, and without limiting any rights tenants may have
under their Leases, from and after the Contract Date to the Closing Date, Seller shall not
further encumber title to the Property in any consensual manner without the written consent
of Buyer (which consent shall not be unreasonably withheld).

     (b) Contracts. Except as otherwise specifically contemplated in this
Agreement, and without limiting any rights tenants may have under their Leases, Seller
agrees not to enter into any contracts or agreements (other than Leases, which shall be
governed by Section 7.1(d) below, and other than the “JP Sublease Letter Agreement” [defined
below], which shall be governed by Section 7.2 below) after the date hereof, except those
which are cancelable on thirty (30) days’ notice or less and without a termination payment
or penalty, to which the Buyer or the Property may be or may become subject without the
express written approval of Buyer (not to be unreasonably withheld).

     (c) Maintenance. From the Contract Date to the Closing Date, Seller shall, at
its sole cost and expense, maintain or cause to be maintained the Property consistent with
Seller’s current practices, and Seller shall keep and perform or cause to be performed all
obligations of Seller under the Fannin Ground Lease, the Phoenix Tunnel Lease, the Phoenix
Tunnel Sublease, the JPMorgan Leases and any other Leases entered into in accordance with
the provisions of Section 7.1(d) below, the Contracts, the Licenses and Permits and the
Warranties; provided that nothing in this Agreement shall require Seller to make any capital
improvements or replacements to the Property following the Contract Date, except to the
extent required to do so by applicable Legal Requirements. Notwithstanding the foregoing,
to the extent that any of the aforesaid maintenance obligations or obligations pertaining to
capital improvements or replacements required by Legal Requirements are a tenant’s
obligation under its Lease, then Seller’s sole obligation hereunder shall be to use
reasonable efforts to enforce the applicable Lease in order to satisfy the aforesaid
obligations described in this subsection (c).

     (d) Leasing.

     (i) During the pendency of this Agreement, Seller will deliver to Buyer notice
(a “Proposed Lease Transaction Notice”) of any new Leases or any renewals,
expansions, or modifications of existing Leases or any express waiver of material
obligations of JPMorgan under the JPMorgan Leases to which

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Seller is contemplating entering into or granting (a “Proposed Lease
Transaction”), which Proposed Lease Transaction Notice shall conspicuously state
thereon that failure of Buyer to deliver written notice of disapproval within five
(5) business days thereafter shall be deemed to be Buyer’s approval of the
applicable Proposed Lease Transaction. Seller’s Proposed Lease Transaction Notice
will include a description of all Tenant Inducement Costs relating to the Proposed
Lease Transaction.

     (ii) Seller shall not enter into any Proposed Lease Transaction without Buyer’s
approval, not to be unreasonably withheld, conditioned or delayed. Buyer agrees
that it will promptly review any Proposed Lease Transaction within five (5) business
days after receipt of the Proposed Lease Transaction Notice from Seller. A failure
to provide written notice of disapproval within such five (5) business day period
will be deemed to constitute approval by Buyer for all purposes, including, without
limitation, approval of the Tenant Inducement Costs, all of which shall be the
responsibility of Buyer.

     (iii) The provisions of Section 7.1(d)(i) and (ii) above shall in no event
relate to the JP Sublease Letter Agreement described below.

     (e) Insurance. From the Contract Date to the Closing Date, Seller shall, at
its sole cost and expense, maintain in full force and effect any casualty insurance policies
which Seller (but not any tenant) currently carries with respect to the Property, and, in
the event that Seller currently carries any such casualty insurance policies then to the
extent that Seller seeks to renew same or change policies, any replacement policy shall
provide substantially similar coverage (subject to customary exceptions at the time of
renewal or replacement including, without limitation, terrorism exclusions, war (declared or
undeclared) exclusions and the like). Upon request, Seller shall deliver to Buyer
reasonable evidence of any of said renewal or replacement policies.

     7.2 JP Sublease Letter Agreement. Seller and Buyer hereby acknowledge that, in
addition to the JPMorgan Leases (defined above), there exist certain other Leases at each of the
Fannin Building and the Phoenix Building which, according to the JPMorgan Leases, are the
responsibility of JPMorgan by virtue of the fact that JPMorgan entered into such other Leases, as
landlord, prior to the effective dates of the JPMorgan Leases (such other Leases are sometimes
referred to herein as the “Other Leases”). To Seller’s knowledge, the only Other Leases in effect
are those described on Exhibit H-2 to this Agreement. In connection with the foregoing, the
parties hereby acknowledge that Seller is currently in the process of negotiating a letter
agreement (the “JP Sublease Letter Agreement”) with JPMorgan memorializing the understanding of
JPMorgan and Seller with respect to their respective obligations relating to the Other Leases; a
copy of the most recent version of the JP Sublease Letter Agreement currently being negotiated is
attached hereto as Exhibit P. Seller hereby agrees to use good faith, diligent efforts to cause
the JP Sublease Letter Agreement to be finalized and executed by the parties thereto prior to
Closing, in such form and substance as is acceptable to Seller in its sole discretion. Without
limiting the foregoing, Buyer hereby acknowledges and agrees that Seller’s ability to so cause the
JP Sublease Letter Agreement to be finalized and executed is not a condition to Buyer’s obligation
to consummate the transaction contemplated by this Agreement

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and, accordingly, in the event that, despite Seller’s good faith, diligent efforts, the JP
Sublease Letter Agreement is not so finalized and executed either before or after Closing then same
shall not constitute a default by Seller hereunder or entitle Buyer to terminate this Agreement.
Without limiting the foregoing provisions of this Section 7.2, Seller hereby agrees to indemnify,
defend and hold Buyer harmless from and against any and all claims brought by JPMorgan against
Buyer on account of security deposit and rental amounts that may have been, prior to Closing,
delivered to, or collected by, Seller under the Other Leases.

ARTICLE 8

CONDITIONS PRECEDENT

     8.1 Conditions Precedent to the Obligations of Buyer. Buyer’s obligation to acquire
the Property pursuant to this Agreement shall be subject to the satisfaction, prior to the Closing
Date, of all of the following conditions precedent, each of which may be waived by Buyer in its
sole discretion:

     (a) Seller shall have performed, in all material respects, all of its covenants and
obligations under this Agreement;

     (b) Seller shall have timely executed and delivered to Escrowee all of the items
referred to in Section 11.2 hereof; and

     (c) All of Seller’s representations and warranties set forth in Section 6.1 of this
Agreement shall be true and correct in “all material respects” (as defined below) as of the
Closing Date (provided that if Seller’s representations and warranties are not so true and
correct in all material respects, Seller shall have five (5) days after written notice
thereof from Buyer to [at its election] take curative action such that the representations
and warranties at issue are then true and correct in all material respects); provided,
however, that (i) if Buyer has knowledge (as defined in Section 6.2(c)) on or before the
Contract Date of matters which, if known to Seller or if notice had been received by Seller
with respect thereto, would make a representation or warranty of Seller untrue, then Seller
shall not be deemed in breach of any representation or warranty with respect to such matter
and Seller shall not be obligated to confirm same in its certificate delivered under Section
11.2(t) below, and such matter shall not give rise to any further condition to Buyer’s
obligations under this Section 8.1; and (ii) if, due to a change of facts or circumstances,
a representation or warranty by Seller that was true and accurate when made on the Contract
Date, becomes untrue or inaccurate as of the Closing Date, then (x) to the extent such
change was not the result of a default of any of Seller’s covenants under this Agreement,
such change shall not constitute a default by Seller under this Agreement or a breach of
Seller’s representations or warranties hereunder and Seller shall not be obligated to
confirm same in its certificate delivered under Section 11.2(t) below, and (y) if (and only
if) such change of facts or circumstances results in Seller’s representations and warranties
contained in this Agreement no longer being true and correct in “all material respects” and
if Seller has not taken the curative action described above in this subsection (c) within
the five (5) day period provided therefor, then so long as such change was not caused by
Buyer’s default hereunder, Buyer shall have such

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rights (as its sole recourse therefor) as described in the last sentence of this
Section 8.1. For purposes of this Section 8.1(c), the term “all material respects” shall
mean that any inaccuracy in such matter at issue (together with all other breaches of
representations and warranties set forth in this Agreement, if any) will have an adverse
monetary effect on the Property which exceeds Two Million and 00/100 Dollars
($2,000,000.00).

If any of the conditions to Buyer’s obligations to acquire the Property under this Section 8.1 have
not been satisfied within the time periods and in accordance with the terms set forth herein, then
Buyer shall have the right, as its sole recourse, to terminate this Agreement by written notice to
Seller delivered on or before the Closing Date, in which event the Earnest Money Deposit shall be
returned to Buyer, subject to the disbursement and payment release conditions set forth in Section
3.1, all obligations of the parties hereto shall thereupon cease (except for those which survive
the early termination of this Agreement as expressly provided herein) and this Agreement shall
thereafter be of no further force and effect, unless such failure of condition constitutes a
default on the part of Seller under any other provision of this Agreement, in which case the terms
of Section 12.2 shall also apply.

     8.2 Conditions Precedent to the Obligations of Seller. Seller’s obligation to sell,
convey, assign, transfer and deliver the Property to Buyer pursuant to this Agreement shall be
subject to the satisfaction, prior to the Closing Date, of all of the following conditions
precedent, each of which may be waived by Seller in its sole discretion:

     (a) Buyer shall have performed, in all material respects, all of its covenants and
obligations under this Agreement;

     (b) Buyer shall have tendered the Purchase Price to Escrowee pursuant to the provisions
of this Agreement;

     (c) Buyer shall have timely executed and delivered to Escrowee all of the items
referred to in Section 11.3 hereof; and

     (d) All of Buyer’s representations and warranties contained in Section 6.3 of this
Agreement shall be true and correct as of the Closing Date.

If any of the conditions to Seller’s obligations to sell the Property under this Section 8.2 have
not been satisfied within the time periods and in accordance with the terms set forth herein, then
Seller shall have the right, as its sole recourse, to terminate this Agreement by written notice to
Buyer, in which event the Earnest Money Deposit shall be paid to Seller, all obligations of the
parties hereto shall thereupon cease (except for those which survive the early termination of this
Agreement as expressly set forth herein) and this Agreement shall thereafter be of no further force
and effect, unless such failure of condition constitutes a default on the part of Buyer under any
other provision of this Agreement, in which case the terms of Section 12.1 shall also apply.

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ARTICLE 9

DESTRUCTION, DAMAGE OR CONDEMNATION

     9.1 Destruction or Damage. If, subsequent to the Contract Date and on or before the
Closing Date, all or any material portion of the Real Property shall be destroyed or damaged by one
or more incidents of fire or other casualty, Seller shall immediately give Buyer notice of such
occurrence, and Buyer shall on or before the earlier to occur of (i) fifteen (15) days after
receipt of such notice and (ii) the then scheduled Closing Date, elect by written notice to Seller
to (a) terminate this Agreement, in which event the Earnest Money Deposit and any interest thereon
net of any investment charges shall be returned forthwith to Buyer, subject to the disbursement and
payment release conditions set forth in Section 3.1, this Agreement shall be deemed null and void
and neither party shall have any further rights and obligations hereunder (other than those matters
which expressly survive early termination of this Agreement); or (b) proceed to close the
transaction contemplated hereby as scheduled with no adjustment to the Purchase Price (provided,
however, that Buyer shall have the right to participate with Seller in the adjustment and
settlement of any insurance claim relating to said damage, and, to the extent the tenant(s) under
the Leases at the Real Property are not entitled to the insurance proceeds, Seller shall, at
Closing, (i) assign to Buyer all of Seller’s interest in any then unpaid insurance proceeds claimed
with respect to said loss or damage, and (ii) pay to Buyer all insurance proceeds theretofore paid
to Seller with respect to same and not theretofore used for restoration or repair, plus any
deductible amount). Buyer’s failure to give notice within the time period specified above shall be
deemed to be Buyer’s election of option (b) above. For purposes of this Section 9.1, damage to the
Real Property shall not be deemed to be “material” under this Section 9.1 unless the cost of
restoring damage to the Real Property, in the aggregate, exceeds Twelve Million and 00/100 US
Dollars ($12,000,000.00); provided, however, if, in the event of a certain fire or other casualty,
any Lease requires the tenant thereunder to fully repair and restore the portion of the Real
Property that is destroyed or damaged by same, and such tenant does not terminate its Lease on
account thereof, then for purposes of this Agreement said fire or other casualty shall in no event
be deemed “material” hereunder, irrespective of whether the cost of restoring the damage to the
Real Property exceeds $12,000,000. With respect to any such damage which is not material, Buyer
shall have no right to terminate this Agreement provided that closing and insurance adjustment
procedures described in clause (b) above shall still apply.

     9.2 Condemnation. If, subsequent to the Contract Date and on or before the Closing
Date, any proceeding which shall relate to the proposed taking of any material portion of the Real
Property by condemnation or eminent domain is instituted or commenced, Buyer shall have the right
and option to terminate this Agreement by giving Seller written notice to such effect on or before
the earlier to occur of (i) fifteen (15) days after receipt of written notification of any such
occurrence or occurrences and (ii) the then scheduled Closing Date. Failure to give such notice
within such time shall be conclusive evidence that Buyer has waived the option to terminate by
reason of the occurrence or occurrences of which it has received notice, the parties shall proceed
to close the transaction contemplated hereby and, to the extent the tenant(s) under the Leases at
the Real Property are not entitled to the condemnation proceeds, Buyer shall be at Closing (i)
credited with any condemnation proceeds theretofore paid to Seller with respect to the taking (and
not theretofore used for restoration or repair), and (ii) assigned all Seller’s right to any other
proceeds therefrom. Seller agrees to furnish Buyer written notification with respect to

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any such proceedings within five (5) business days after Seller’s receipt of any such
notification of such proceedings. Should Buyer elect to so terminate this Agreement, the Earnest
Money Deposit plus any interest thereon net of any investment charges shall be returned forthwith
to Buyer, subject to the disbursement and payment release conditions set forth in Section 3.1, this
Agreement shall be deemed null and void and neither party shall have any further rights and
obligations hereunder (other than those matters which expressly survive early termination of this
Agreement). For purposes of this Section 9.2, a taking of the Real Property shall not be deemed to
be “material” under this Section 9.2 unless the value of the portion of the Real Property taken
exceeds, in the aggregate, Twelve Million and 00/100 US Dollars ($12,000,000.00); provided,
however, if, in the event of a certain condemnation or eminent domain proceeding, any Lease
requires the tenant thereunder to fully repair and restore the portion of the Real Property
affected thereby and such tenant does not terminate its Lease on account thereof, then for purposes
of this Agreement, such condemnation or eminent domain proceedings shall in no event be deemed
“material” hereunder, irrespective of whether the value of the Real Property taken exceeds
$12,000,000. With respect to any such taking which is not material Buyer shall have no right to
terminate this Agreement provided that, to the extent the tenant(s) at the Real Property are not
entitled to the condemnation proceeds, Buyer shall still be (i) credited with any condemnation
proceeds paid to Seller (and not theretofore used for restoration or repair) and (ii) assigned all
of Seller’s right to any other proceeds therefrom.

ARTICLE 10

POSSESSION, PRORATIONS AND CLOSING COSTS

     10.1 Possession. Sole and exclusive possession of the Property shall be delivered to
Buyer on the Closing Date, subject only to the rights of tenants and other occupants under the
Leases, and the parties under any Permitted Title Exceptions, the Contracts, the Fannin Ground
Lease, the Phoenix Tunnel Lease and the Phoenix Tunnel Sublease.

     10.2 Prorations.

     (a) The following will be apportioned with respect to the Property as of 12:01 a.m.
(local time at the Property), on the day of Closing, as if Buyer were vested with title to
the Property during the entire day upon which Closing occurs:

     (i) Current rents collected from tenants under the Leases, and rents collected
by Seller under the Phoenix Tunnel Sublease (if any), shall be prorated for the
month during which the Closing occurs (the term “rents” as used in this Agreement
includes all payments due and payable by tenants under the Leases);

     (ii) Current bills for real estate taxes and special assessments, if any,
assessed against the Property (“Taxes”) for the calendar year of Closing shall be
prorated on a cash basis, as opposed to an accrual basis, as follows:

     (A) Buyer shall receive a credit for Taxes payable in calendar year
2007, attributable to the period of Seller’s ownership of the Property in
calendar year 2007, as and to the extent that Seller has not yet paid the

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relevant bill therefor; and Seller shall receive a credit for Taxes
paid by or on behalf of Seller in calendar year 2007 to the relevant taxing
authority prior to Closing, for Taxes attributable to the period of Buyer’s
ownership of the Property in calendar year 2007;

     (B) Subject to reconciliation as provided in subparagraph (f), below,
Seller shall retain all amounts paid or payable by tenants under the Leases
on account of Taxes payable during calendar year 2007 for the period prior
to Closing, and Buyer shall be entitled to amounts paid by tenants under the
Leases on account of Taxes payable during calendar year 2007 for the period
after Closing.

Notwithstanding the foregoing provisions of this subsection (ii), to the extent it
is the responsibility of the tenants under the Leases to pay the Taxes directly to
the applicable taxing authorities, there shall be no proration between Seller and
Buyer with respect thereto.

Any refund or credit attributable to Seller’s overpayment of Taxes payable in 2007 for the
period prior to Closing and for previous years (collectively, the “Refund”) which is not the
property of tenants under Leases is the property of Seller, and Buyer shall reasonably
cooperate with Seller to obtain the Refund at Seller’s reasonable expense. Any other refund
for overpayment for Taxes for any other period belongs to Buyer.

     (b) Payments of accounts for water, sewer, electricity, telephone and all other
utilities currently in the name of Seller (or its managing agent) shall be placed in the
name of Buyer on the Closing Date and Seller shall arrange for final meter readings and
metered services to be conducted on the Closing Date. Seller shall be responsible to pay in
full all bills for such utility charges related to any period prior to the Closing Date and
Buyer shall be responsible to pay all utility charges related to any period on and
subsequent to the Closing Date. With respect to utilities which are not metered, charges
for such service shall be prorated as of the Closing Date, based on charges for the previous
billing period, and Buyer and Seller shall receive credits or charges, as appropriate, with
such amounts to be reprorated promptly after the final bills are issued. Seller shall
cooperate with Buyer to effect the transfer of utility accounts from Seller to Buyer.
Notwithstanding the foregoing provisions of this subsection (b), to the extent that it is
the responsibility of the tenants under the Leases to pay the aforesaid utilities directly
to the applicable utility providers, there shall be no proration between Seller and Buyer
with respect thereto.

     (c) Buyer shall be entitled to a credit against the Purchase Price for sums that are
due (or accrued) and unpaid as of the Closing Date under any Contracts being assumed by
Buyer which are not otherwise covered by the foregoing provisions of this Section 10.2, and
Seller shall be entitled to a credit to the extent that sums have been paid under any
Contract, for services to be performed or goods to be delivered after the Closing Date.

25

 

     (d) Seller shall be responsible for all Tenant Inducement Costs which are due and
payable on or before the Closing Date under or related to the Leases in existence as of the
Contract Date; Buyer shall be responsible for (and Seller shall have no responsibility for)
all Tenant Inducement Costs (i) for or related to all new Leases (i.e., including, without
limitation, any amendment to an existing Lease) signed after the Contract Date; and/or (ii)
which are due and payable after the Closing Date for or related to the Leases in existence
as of the Contract Date.

     (e) Unpaid and delinquent rent collected by Seller and Buyer after the Closing Date
will be delivered as follows: (i) if Seller collects any unpaid or delinquent rent for the
Property, Seller will, within fifteen (15) days after the receipt thereof, deliver to Buyer
any such rent which Buyer is entitled to hereunder relating to the date of Closing and any
period thereafter, and (ii) if Buyer collects any unpaid or delinquent rent from the
Property, Buyer will, within fifteen (15) days after the receipt thereof, deliver to Seller
any such rent which Seller is entitled to hereunder relating to the period prior to the date
of Closing. Seller and Buyer agree that all rent received by Seller or Buyer will be
applied first to rents that became due and payable after Closing, and second, to those which
were due and payable prior to Closing, in reverse order of maturity. Buyer will make a good
faith effort after Closing to collect all unpaid and delinquent rents in the usual course of
Buyer’s operation of the Property, but Buyer will not be obligated to institute any lawsuit
or other collection procedures to collect such unpaid or delinquent rents. In the event
that there shall be any rents or other charges under any Leases which, although relating to
a period prior to Closing, do not become due and payable until after Closing or are paid
prior to Closing but are subject to adjustment after Closing (e.g., such as year end
operating and common area expense reimbursements and the like), then any rents or charges of
such type received by Buyer or its agents or Seller or its agents subsequent to Closing
will, to the extent applicable to a period extending through the Closing, be prorated
between Seller and Buyer as of Closing and Seller’s portion thereof will be remitted
promptly to Seller by Buyer without reduction for any costs of collection or processing.

     (f) The parties shall perform a year end reconciliation of rents and operating expense
contributions and any pass-throughs as required under the Leases for calendar year 2007
prior to February 15, 2008. If the annual reconciliation of Tenant/occupant rents,
operating expenses and pass-throughs for the 2007 calendar year results in there being
amounts due and payable by the tenants or other occupants, Buyer will collect such amounts
and pay the portion of same for Seller’s period of ownership to Seller promptly upon Buyer’s
receipt. If such reconciliation results in there being refunds due and payable to tenants
or other occupants on account of the pass through of specifically designated expenses
incurred during Seller’s period of ownership, Seller will pay to Buyer the amount of any
such documented pass-through of expenses within ten (10) business days of receipt of a
written request therefor from Buyer, whereupon Buyer will promptly disburse the appropriate
refunds to the tenants or other occupants. There shall be no further obligation to
reprorate or reconcile tenant pass-throughs after February 15, 2008 (the “Final Payment
Date”).

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     (g) Notwithstanding anything to the contrary contained in this Agreement, rentals and
other amounts under the Fannin Ground Lease shall be prorated as follows:

     (i) Fixed, minimum and base rentals, payable under the Fannin Ground Lease, for
the month of Closing shall be prorated between Seller and Buyer on a per diem basis;

     (ii) Any and all real estate taxes, and ad valorem taxes, assessments, levies
and charges which are the responsibility of the “Tenant” under the Fannin Ground
Lease shall be prorated in accordance with the provisions of Section 10.2(a)(ii)
above; provided, however, that to the extent that such taxes, assessments, levies
and charges for which the “Tenant” under the Fannin Ground Lease is responsible, are
paid directly to applicable taxing authority by the tenants under the Leases at the
Real Property, there shall be no proration between Seller and Buyer with respect
thereto.

     (h) All other expenses customarily prorated on the transfer of net leased properties in
the areas where the Property is located shall be prorated on an accrual basis as of the
Closing Date on the basis of the most recent ascertainable amounts of or other reliable
information in respect to each such item of income and expense, and the net credit to Buyer
or Seller shall be paid in cash or as a credit against that portion of the Purchase Price
payable on the Closing Date. Any item prorated on an estimated basis on the Closing Date
shall be reprorated by the parties when and as the actual amount of such item of income or
expense becomes known and adjusted on or before the Final Payment Date. Any adjustment due
to reproration shall be effected promptly following final determination of the amount of
such item and demand by the party to whom credit is due.

     (i) The provisions of this Section 10.2 will survive the Closing.

     10.3 Closing Costs. Seller shall be responsible for: (i) one hundred percent (100%)
of all title charges and premiums attributable to the Phoenix Commitment, the Phoenix Policy (and
“mark-up”), the Fannin Commitment, and the Fannin Policy (and “mark-up”) required to be delivered
by Seller hereunder (i.e., specifically excluding any additional charges or premiums for Buyer
Endorsements, but specifically including 100% of any additional charges or premiums for insuring or
endorsing over unpermitted Monetary Liens); (ii) all charges for the Survey; (iii) fifty percent
(50%) of all state, county, local and municipal transfer taxes, if any; and (v) fifty percent (50%)
of all closing fees and escrow fees and costs. Buyer shall be responsible for (a) one hundred
percent (100%) of all fees for any Updated Survey, all state deed fees, documentary fees, and all
recording fees; (b) fifty percent (50%) of all state, county, local and municipal transfer taxes,
if any; (c) fifty percent (50%) of all closing fees and escrow fees and costs; (d) 100% of the
costs of all Buyer Endorsements; and (e) 100% of all costs incurred in connection with any
financing obtained by Buyer (including all charges for any lender title insurance commitments or
policies and closing services performed by the Title Company) and in connection with any
Inspections conducted by Buyer hereunder. Buyer and Seller shall each pay the fees and expenses of
their respective legal counsel incurred in connection with the transaction contemplated hereby,
subject, however, to the provisions of Section 15.7 below.

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ARTICLE 11

CLOSING

     11.1 Time and Place. The closing of the transaction contemplated hereby (“Closing”)
shall take place at the offices of Seller’s attorney (or such other place as may be mutually agreed
upon by the parties) on the Closing Date. The Closing shall be effected pursuant to the escrow
instructions described in Section 3.3 above.

     11.2 Seller’s Deliveries. On or before the Closing Date, Seller shall deliver or
cause to be delivered to Buyer or to Escrowee the following documents, each of which shall be in
form and substance reasonably acceptable to Buyer:

     (a) The Fannin Deed and the Phoenix Deed;

     (b) Two (2) counterpart originals of each of (i) BREOF Fannin’s Assignment and
Assumption of Contracts substantially in the form attached as Exhibit I hereto (the
“Assignment of Contracts”) and relating to those Contracts for the Fannin Real Property,
executed by BREOF Fannin, and (ii) BREOF Phoenix’s Assignment of Contracts relating to those
Contracts for the Phoenix Real Property, executed by BREOF Phoenix;

     (c) Two (2) counterpart originals of each of (i) BREOF Fannin’s Assignment and
Assumption of the Licenses and Permits and Warranties, substantially in the form attached as
Exhibit J hereto (the “Assignment of Licenses and Permits and Warranties”) and relating to
those Licenses and Permits and Warranties for the Fannin Real Property, executed by BREOF
Fannin, and (ii) BREOF Phoenix’s Assignment of Licenses and Permits and Warranties relating
to those Licenses and Permits and Warranties for the Phoenix Real Property, executed by
BREOF Phoenix;

     (d) Each of (i) BREOF Fannin’s Bill of Sale substantially in the form attached as
Exhibit K hereto (“Bill of Sale”) assigning and conveying the Tangible Personal Property and
the Intangible Personal Property relating to the Fannin Real Property, executed by BREOF
Fannin and (ii) BREOF Phoenix’s Bill of Sale assigning and conveying the Tangible Personal
Property and Intangible Personal Property relating to the Phoenix Real Property, executed by
BREOF Phoenix;

     (e) Two (2) counterpart originals of each of (i) BREOF Fannin’s Assignment and
Assumption of Leases substantially in the form attached as Exhibit L hereto (the “Assignment
of Leases”) relating to the JPMorgan Lease at the Fannin Real Property and any new Leases
entered into pursuant to Section 7.1(d) above at the Fannin Real Property, executed by BREOF
Fannin; and (ii) BREOF Phoenix’s Assignment of Leases, relating to the JPMorgan Lease at the
Phoenix Real Property, any new Leases entered into pursuant to Section 7.1(d) above at the
Phoenix Real Property and the Phoenix Tunnel Sublease, executed by BREOF Phoenix;

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     (f) Two (2) counterpart originals of BREOF Fannin’s Assignment and Assumption of Fannin
Ground Lease substantially in the form attached hereto as Exhibit M (“Assignment of Fannin
Ground Lease”), executed by BREOF Fannin;

     (g) Two (2) counterpart originals of BREOF Phoenix’s Assignment and Assumption of
Phoenix Tunnel Lease substantially in the form attached hereto as Exhibit N (“Assignment of
Phoenix Tunnel Lease”), executed by BREOF Phoenix;

     (h) To the extent not theretofore delivered to Buyer, the original (i) Required Lease
Estoppel Forms, and (ii) Required Ground Lease Estoppel Forms (and, to the extent
applicable, Seller Ground Lessor Estoppel Certificates);

     (i) To the extent in Seller’s possession, originals or copies of the executed
counterparts of all Leases, all Contracts, all Licenses and Permits, all Warranties, the
Fannin Ground Lease, Phoenix Tunnel Lease, and the Phoenix Tunnel Sublease, assigned to
Buyer, all of which documents may remain held at the Real Property and shall be transferred
to Buyer by means of the transfer of possession of the Real Property hereunder;

     (j) Counterparts of letters to parties under the Leases, the Contracts, the Fannin
Ground Lease, the Phoenix Tunnel Lease and the Phoenix Tunnel Sublease, advising that same
have been sold and assigned to Buyer;

     (k) Evidence confirming the due authorization, execution and delivery of this Agreement
and the other documents to be executed in connection herewith by Seller;

     (l) To the extent required by the Title Company, an ALTA Statement in customary form
required by the Title Company in order to issue the Title Policy required hereunder;

     (m) An executed Affidavit in customary form, or a qualifying statement from the U.S.
Treasury Department, that the transaction is exempt from the withholding tax requirement
imposed by Section 1445A of the Internal Revenue Code and the rules and regulations
promulgated thereunder (“Code”);

     (n) All keys to the Improvements in Seller’s possession;

     (o) Subject to Section 11.7 below, the Title Policy (or a “marked-up” title commitment
as described in Section 4.1 above) issued by the Title Company;

     (p) Any state, county and municipal transfer declarations which are legally or
customarily required to be executed by Seller to effectuate the conveyance and transfer of
the Property contemplated hereby;

     (q) Subject to Section 11.7 below, such other documents, instruments, certifications
and confirmations as may be reasonably necessary or appropriate to comply with the
provisions of this Agreement or as may be reasonably required and designated

29

 

by the Title Company to fully effect and consummate the transactions contemplated
hereby;

     (r) Funds sufficient to pay any amounts required to be paid by Seller in accordance
with the provisions of Article 10 (which funds may, at Seller’s election, be accounted for
from the net Purchase Price proceeds being delivered by Buyer hereunder);

     (s) Two (2) counterpart originals of each of (i) BREOF Fannin’s Rent Enhancement
Agreement substantially in the form attached as Exhibit O hereto (the “Rent Enhancement
Agreement”) and relating to the JPMorgan Lease at the Fannin Real Property, executed by
BREOF Fannin (provided that the “Term” thereunder shall end on the last day of the 96th full
calendar month thereunder and the “Monthly Rent Enhancement Amounts” thereunder shall be as
set forth on Exhibit O), and (ii) BREOF Phoenix’s Rent Enhancement Agreement relating to the
JPMorgan Lease at the Phoenix Real Property, executed by BREOF Phoenix (provided that the
“Term” thereunder shall end on the last day of the 96th full calendar month thereunder and
the “Monthly Rent Enhancement Amount” thereunder shall be as set forth on Exhibit O); and

     (t) Seller’s certificate dated as of the Closing Date confirming that the
representations and warranties of Seller set forth in Section 6.1 of this Agreement are true
and correct in all material respects as if made on the Closing Date (subject, however, to
the terms of Section 8.1(c) above).

     11.3 Buyer’s Deliveries. On or before the Closing Date, Buyer shall deliver or cause
to be delivered to Seller or to Escrowee the following documents, each of which shall be in form
and substance reasonably acceptable to Seller:

     (a) Two (2) counterpart originals of each of the Assignment of Contracts referenced in
Section 11.2(b) above, executed by Buyer;

     (b) Two (2) counterpart originals of each of the Assignment of Licenses and Permits and
Warranties referenced in Section 11.2(c) above, executed by Buyer;

     (c) Two (2) counterpart originals of each of the Assignment of Leases referenced in
Section 11.2(e) above, executed by Buyer;

     (d) Two (2) counterpart originals of the Assignment of Fannin Ground Lease, executed by
Buyer;

     (e) Two (2) counterpart originals of the Assignment of Phoenix Tunnel Lease, executed
by Buyer;

     (f) Counterparts of letters to parties under the Leases, the Contracts, the Fannin
Ground Lease, the Phoenix Tunnel Lease and the Phoenix Tunnel Sublease, advising that same
have been sold to Buyer;

     (g) Evidence confirming the due authorization, execution and delivery of this Agreement
and the documents to be executed in connection herewith by Buyer.

30

 

     (h) To the extent required by the Title Company, an ALTA Statement or other affidavit
in customary form required by the Title Company in order to issue the Title Policy required
hereunder;

     (i) The balance of the Purchase Price;

     (j) Any state, county and municipal transfer declarations which are legally or
customarily required to be executed by Buyer to effectuate the conveyance and transfer of
the Property contemplated hereby;

     (k) Such other documents, instrument, certifications and confirmations as may be
necessary or appropriate to comply with the provisions of this Agreement or as may be
reasonably required and designated by Title Company to fully effect and consummate the
transactions contemplated hereby;

     (l) Funds sufficient to pay all amounts required to be paid by Buyer in accordance with
the provisions of Article 10;

     (m) Two (2) counterpart originals of each of the Rent Enhancement Agreements referenced
in Section 11.2(s) above, executed by Buyer; and

     (n) Buyer’s certificate dated as of the Closing Date confirming that the
representations and warranties of Buyer set forth in this Agreement are true and correct as
if made on the Closing Date.

     11.4 Concurrent Deliveries. Seller and Buyer shall jointly deposit in the escrow or
deliver to each other at or before Closing an agreed proration statement duly executed by the
respective parties.

     11.5 Concurrent Transactions. All documents or other deliveries required to be made
by Buyer or Seller at Closing, and all transactions required to be consummated concurrently with
Closing, shall be deemed to have been delivered and to have been consummated simultaneously with
all other transactions and all other deliveries, and no delivery shall be deemed to have been made,
and no transaction shall be deemed to have been consummated, until all deliveries required by Buyer
and Seller shall have been made, and all concurrent or other transactions shall have been
consummated.

     11.6 New York Style Closing. The parties agree that the transaction shall be closed
by means of a so-called “New York Style Closing” (i.e., meaning the concurrent delivery of the
documents of title, transfer of interests, delivery of the Title Policy or “marked-up” title
commitment as described herein and the payment of the Purchase Price). The parties shall provide
any customary affidavits or undertakings to the Title Company necessary for the aforedescribed New
York Style Closing to occur.

     11.7 Title Insurance. Seller agrees to use good faith, diligent efforts to cause the
Title Company, at Closing, to issue (or irrevocably commit to issue) the Title Policy, in all
material respects, as required under this Agreement. If, however, the Title Company fails or
refuses to issue (or irrevocably commit to issue) said Title Policy at Closing, and provided that
(i) Seller

31

 

has utilized good faith, diligent efforts to cause Title Company to issue (or irrevocably
commit to issue) such Title Policy, (ii) Seller has delivered all customary indemnifications and/or
affidavits to the Title Company to enable the Title Company to issue (or irrevocably commit to
issue) such Title Policy, (iii) the failure of the Title Company to issue (or irrevocably commit to
issue) such Title Policy is not the result of any new title matter first arising from and after the
date of the Title Commitment and arising from the acts or omissions of Seller in violation of the
provisions of this Agreement, and (iv) the failure of the Title Company to issue (or irrevocably
commit to issue) such Title Policy is not a result of any default of Seller hereunder (other than a
default based on a failure of Seller to cause the Title Company to issue (or irrevocably commit to
issue) such Title Policy otherwise required hereunder), then, notwithstanding anything contained in
this Agreement to the contrary, the failure of the Title Company to issue (or irrevocably commit to
issue) said Title Policy shall not be deemed a default by Seller hereunder, and, in lieu thereof,
and as its sole recourse, Buyer may elect to either (1) terminate this Agreement, in which event
the Earnest Money Deposit and any interest thereon net of investment charges shall be forthwith
returned to Buyer, subject to the disbursement and payment release conditions set forth in Section
3.1, all obligations of the parties hereunder shall terminate, and this Agreement shall otherwise
have no further force and effect (other than those matters which expressly survive early
termination of this Agreement), or (2) proceed to close the transactions contemplated hereby in
accordance with the terms of this Agreement, whereupon Buyer shall accept such form of title
insurance policies, if any, as the Title Company is then prepared to issue. Buyer’s failure to
make either of the two elections described in the preceding sentence on or before the Closing Date
shall be deemed an election of option (2) above.

ARTICLE 12

DEFAULT

     12.1 Buyer Default.

     (a) Notwithstanding anything to the contrary contained in this Agreement, if, prior to
Closing, Buyer is in default of this Agreement or in breach of any representation or
warranty as and when made in this Agreement and Seller has knowledge thereof prior to
Closing, then Seller shall deliver to Buyer written notice of such default or breach, which
notice shall describe the nature of the default or breach and Buyer shall have a period of
five (5) days to cure same (provided, however, that Buyer shall not be entitled to any such
notice and opportunity to cure for any default under Articles 10, 11, 13 and Article 16).
If such default or breach remains uncured beyond the five (5) day period described above, as
applicable, or in the event of such default or breach where no such notice and cure period
is permitted as provided above, then, except as provided below in this Section 12.1 and
without limiting the other obligations and indemnities under this Agreement that expressly
survive the termination of this Agreement, as Seller’s sole and exclusive remedy in lieu of
all other legal or equitable remedies, Seller shall be entitled to (i) retain the Earnest
Money Deposit and interest earned thereon (net of investment charges) as Seller’s liquidated
damages, or (ii) waive the default at issue in writing and proceed to close the transaction
contemplated by this Agreement in accordance with the other terms and provisions of this
Agreement. THE PARTIES AGREE THAT IT WOULD BE IMPRACTICABLE AND EXTREMELY DIFFICULT TO
ASCERTAIN

32

 

THE ACTUAL DAMAGES SUFFERED BY SELLER AS A RESULT OF BUYER’S FAILURE TO COMPLETE THE
PURCHASE OF THE PROPERTY PURSUANT TO THIS AGREEMENT, AND THAT UNDER THE CIRCUMSTANCES
EXISTING AS OF THE DATE OF THIS AGREEMENT, THE LIQUIDATED DAMAGES PROVIDED FOR IN THIS
SECTION REPRESENT A REASONABLE ESTIMATE OF THE DAMAGES WHICH SELLER WILL INCUR AS A RESULT
OF SUCH FAILURE; PROVIDED, HOWEVER, THAT THIS PROVISION SHALL NOT AFFECT SELLER’S RIGHTS AND
BUYER’S INDEMNITY OBLIGATIONS UNDER SECTION 5.2 OF THIS AGREEMENT, NOR SELLER’S RIGHTS AND
BUYER’S OBLIGATIONS UNDER ARTICLE 13 AND ARTICLE 16 BELOW AND UNDER THE CONFIDENTIALITY
AGREEMENT. THE PARTIES ACKNOWLEDGE THAT THE PAYMENT OF SUCH LIQUIDATED DAMAGES IS NOT
INTENDED AS A FORFEITURE OR PENALTY, BUT IS INTENDED TO CONSTITUTE LIQUIDATED DAMAGES TO
SELLER. EACH PARTY HEREBY AGREES TO WAIVE ANY AND ALL RIGHTS WHATSOEVER TO CONTEST THE
VALIDITY OF THE LIQUIDATED DAMAGE PROVISIONS FOR ANY REASON WHATSOEVER, INCLUDING, BUT NOT
LIMITED TO, THAT SUCH PROVISION WAS UNREASONABLE UNDER CIRCUMSTANCES EXISTING AT THE TIME
THIS AGREEMENT WAS MADE.

     (b) If Buyer is in default of this Agreement after Closing or if Seller obtains
knowledge, after Closing, of any pre-Closing Buyer default or any breach of any
representation or warranty as and when made in this Agreement, then, subject to the survival
periods expressly set forth in this Agreement, Seller shall have the right, as its sole and
exclusive remedy, to seek damages from Buyer on account thereof.

     12.2 Seller Default.

     (a) If, prior to Closing, Seller is in default of this Agreement or in breach of any
representation or warranty as and when made in this Agreement and Buyer has knowledge
thereof prior to the Closing, then Buyer shall deliver to Seller written notice of such
default or breach, which notice shall describe the nature of the default or breach, and
Seller shall have a period of five (5) days to cure same. If such default or breach remains
uncured beyond the five (5) day period described above (it being understood by the parties
that, with respect to any breach of a representation or warranty, so long as Seller’s
curative actions result in the representation or warranty at issue then being true in “all
material respects” (as defined in Section 8.1(c) above), then said breach shall be deemed
cured for purposes hereof), then Buyer may elect by written notice to Seller and as Buyer’s
sole and exclusive remedy, in lieu of any and all other remedies at law or in equity to
either: (i) to cancel this Agreement, in which event the Earnest Money Deposit and interest
earned thereon (net of investment charges) shall be returned to Buyer, subject to the
disbursement and payment release conditions set forth in Section 3.1, (ii) to maintain and
bring a suit to specifically enforce the provisions of this Agreement within forty-five (45)
days after the written notice of the breach (subject, however, in any event, to the
provisions contained in Section 6.2 above), or (iii) waive the default at issue in writing
and proceed to close the transaction contemplated by this Agreement in accordance with the
other provisions of this Agreement. If Buyer does not notify Seller

33

 

of its election on or before the scheduled Closing Date (or five (5) days after Buyer’s
delivery of its notice of default, if earlier), Buyer shall be deemed to have elected option
(iii) above.

     (b) In the event Seller is in default of this Agreement after Closing or if Buyer
obtains knowledge, after Closing, of any pre-Closing Seller default or any breach of any
representation or warranty as and when made in this Agreement, then, subject to the
provisions of Section 6.2 above, and the survival periods expressly set forth in this
Agreement, Buyer shall have the right, as its sole and exclusive remedy, to seek damages
from Seller on account thereof.

ARTICLE 13

BROKERAGE

     13.1 Brokerage. Seller hereby represents and warrants to Buyer that Seller has not
dealt with any broker or finder with respect to the transaction contemplated hereby other than CB
Richard Ellis, Inc. (“Seller’s Broker”). Seller agrees to pay a brokerage commission to Seller’s
Broker pursuant to Seller’s written agreement with said Seller’s Broker. Seller hereby agrees to
indemnify, defend and hold harmless Buyer for any claim for brokerage commission or finder’s fee
asserted by any person, firm or corporation claiming to have been engaged by Seller. Buyer hereby
represents and warrants to Seller that Buyer has not dealt with any broker or finder in respect to
the transaction contemplated hereby other than Seller’s Broker. Buyer hereby agrees to indemnify,
defend and hold harmless Seller for any claim for brokerage commission or finder’s fee asserted by
any person, firm or corporation claiming to have been engaged by Buyer. The provisions of this
Section 13.1 shall survive Closing for the longest period permitted by law.

ARTICLE 14

NOTICES

     14.1 Notices. Any notice, request, demand, instruction or other document to be given
or served hereunder or under any document or instrument executed pursuant hereto shall be in
writing and shall be delivered personally, or transmitted by facsimile (provided that the original
thereof together with the facsimile confirmation sheet shall thereafter be promptly sent by a
nationally recognized overnight express courier), or sent by a nationally recognized overnight
express courier, and shall be addressed to the parties at their respective addresses set forth
below, and the same shall be effective upon receipt if delivered personally, or one (1) business
day after deposit with a nationally recognized overnight express courier, or immediately upon being
sent by facsimile transmission in accordance with the procedures described above. A party may
change its address for receipt of notices by service of a notice of such change in accordance
herewith.

34

 

	 	 	 
	If to Seller:

	 	Brookfield Real Estate Opportunity Fund
	 

	 	Three World Financial Center
	 

	 	200 Vesey Street
	 

	 	11th Floor
	 

	 	New York, New York 10281-1021
	 

	 	Attention: Mr. Steven H. Ganeless
	 

	 	Facsimile: (212) 417-7292
	 
	 	 
	with a copy to:

	 	DLA Piper US LLP
	 

	 	203 North LaSalle Street
	 

	 	Suite 1900
	 

	 	Chicago, Illinois 60601
	 

	 	Attention: Michael L. Ben-Isvy, Esq.
	 

	 	Facsimile: (312) 251-5704
	 
	 	 
	If to Buyer:

	 	c/o Crystal River Capital, Inc.
	 

	 	Three World Financial Center, 10th Floor
	 

	 	New York, New York 10281-1010
	 

	 	Attn: General Counsel
	 

	 	Facsimile: (212) 549-8310
	 
	 	 
	with a copy to:

	 	Paul, Hastings, Janofsky & Walker LLP
	 

	 	77 East 55th Street
	 

	 	New York, New York 10022
	 

	 	Attn: Ilan A. Lerman
	 

	 	Facsimile: (212) 230-7803

ARTICLE 15

ADDITIONAL COVENANTS

     15.1 Entire Agreement, Amendments and Waivers. This Agreement contains the entire
agreement and understanding of the parties with respect to the subject matter hereof, and the same
may not be amended, modified or discharged nor may any of its terms be waived except by an
instrument in writing signed by the party to be bound thereby. This Agreement supersedes any and
all prior written or oral agreements and understandings (including, without limitation, letters of
intent) between the parties relating to the subject matter of this Agreement.

     15.2 Further Assurances. The parties each agree to do, execute, acknowledge and
deliver all such further acts, instruments and assurances and to take all such further action
before or after the Closing as shall be necessary or desirable to fully carry out this Agreement
and to fully consummate and effect the transactions contemplated hereby.

     15.3 Successors and Assigns. Subject to the provisions of Section 15.8 below, all
agreements, obligations and indemnities of the parties shall inure to the benefit of and be binding
upon the respective successors and assigns of the parties.

35

 

     15.4 No Third Party Benefits. This Agreement is for the sole and exclusive benefit of
the parties hereto and their respective successors and assigns, and no third party is intended to
or shall have any rights hereunder. No memorandum of contract or other instrument of notice of
this Agreement or any of the rights herein shall be recorded by either party against the Property.

     15.5 Interpretation. The headings and captions herein are inserted for convenient
reference only and the same shall not limit or construe the paragraphs or Sections to which they
apply or otherwise affect the interpretation hereof. This Agreement and any document or instrument
executed pursuant hereto may be executed in any number of counterparts, each of which shall be
deemed an original, but all of which together shall constitute one and the same instrument.
Whenever under the terms of this Agreement the time for performance of a covenant or condition
falls upon a Saturday, Sunday or holiday (in the United States or in Toronto, Canada), such time
for performance shall be extended to the next business day. Otherwise all references herein to
"days” shall mean calendar days. Time is of the essence of this Agreement. All references to
funds or sums of money shall be in US dollars. The terms “hereby”, “hereof”, “hereto”, “herein”,
“hereunder” and any similar terms shall refer to this Agreement, and the term “hereafter” shall
mean after, and the term “heretofore” shall mean before, the date of this Agreement. For purposes
of this Agreement, any signature transmitted by facsimile or e-mail (in pdf. format) shall have the
same binding effect as any original signature.

     15.6 Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of New York.

     15.7 Attorneys’ Fees. In any action or proceeding involving this Agreement or the
contents hereof, the prevailing party shall be entitled to recover from the other party the
prevailing party’s reasonable costs and expenses in such action or proceeding, including reasonable
attorneys’ fees.

     15.8 Assignment. Buyer shall not assign or transfer this Agreement, or any interest
herein, to any other person or entity, without first having obtained the prior written consent of
Seller; provided, however, that without limiting the provisions of this Section 15.8 below,
Seller’s consent shall not be required for an assignment of this Agreement to a “Buyer Affiliate”
(as hereinafter defined). In the event of any permitted assignment of this Agreement or any
interest herein (including, without limitation, any assignment to a Buyer Affiliate), the assigning
party shall remain jointly and severally responsible with the assignee for all of its obligations
and liabilities set forth in this Agreement and in any of the documents entered into in connection
with the consummation of the transaction contemplated by this Agreement, and such assignment shall
not be deemed to release the assigning party, in any respect, from any such obligations and
liabilities. As used in this Section 15.8, the term (i) “Buyer Affiliate” shall mean any entity
which (x) results from a merger or consolidation with Buyer, or (y) acquires all or substantially
all of the assets of the Buyer for a purpose other than to circumvent the provisions of this
Section 15.8, or (z) is controlled by, controls or is under common control with the Buyer; and (ii)
“control” shall mean the power, through ownership interests, to directly cause the direction or
management or policies of Buyer.

36

 

ARTICLE 16

CONFIDENTIALITY

     16.1 Confidentiality. Any and all information regarding the Property or regarding
Seller or its affiliates which is provided or made available to Buyer by Seller or by its agents,
or any other information obtained by Buyer regarding the Property or the Seller or its affiliates
in the course of Buyer’s Inspections or other due diligence investigations hereunder, or any
information regarding the terms of the transaction contemplated hereby, in each case to the extent
not generally available to the public (herein, the “Confidential Materials”), shall be maintained
by Buyer and each of Buyer’s direct and indirect shareholders, officers, directors, partners,
principals, members, employees, agents, contractors, attorneys, accountants and consultants in
strict confidence, to be used solely in connection with evaluating the transaction contemplated
hereby, and shall not be disclosed to any other third parties without the prior written consent of
Seller. Buyer acknowledges and agrees that any breach or threatened breach of this confidentiality
provision would cause irreparable harm to Seller which may not be adequately remedied by monetary
damages and that, as a result, Seller may, in such event, in addition to any other rights or
remedies available hereunder or at law or in equity, seek an injunction enjoining any disclosure of
the Confidential Materials. This obligation of confidentiality shall not apply to disclosures
compelled by law, any order of a court of competent jurisdiction or by a lawful, proper subpoena,
in which event Buyer shall immediately notify Seller of the circumstances purporting to require
such disclosure and shall refrain from such disclosure for the maximum period of time allowed by
law so that Seller may take such actions as it may deem appropriate to protect the Confidential
Materials being sought. Buyer shall make all parties having access to the Confidential Materials
aware of their obligation of confidentiality described in this Section 16.1 and shall bind such
parties to similar obligations of confidentiality. The terms of this Section 16.1 shall expressly
survive the early termination of this Agreement for the longest period provided by law. If this
Agreement is terminated for any reason prior to the Closing of the transaction contemplated hereby,
then, upon the request of Seller, Buyer shall immediately return to Seller or destroy all
Confidential Materials (including all copies thereof) which are in the possession of Buyer or any
of Buyer’s Representatives. Nothing contained in this Section 16.1 shall limit the parties rights
and obligations under that certain undated Purchaser’s Confidentiality Agreement between CB Richard
Ellis, Inc., on behalf of Seller, and Crystal, on behalf of Buyer (the “Confidentiality
Agreement”), a copy of which Confidentiality Agreement is attached hereto as Exhibit Q.

ARTICLE 17

EXCHANGE PROVISIONS

     17.1 Tax Free Exchange. If either Party (the “Notifying Party”) notifies the other
Party (the “Other Party”) not less than three (3) days prior to the Closing Date that the Notifying
Party wishes to attempt to effectuate a “tax-free” exchange pursuant to Section 1031 of the
Internal Revenue Code in connection with the transaction contemplated in this Agreement, the Other
Party shall cooperate with the Notifying Party (including, without limitation, executing applicable
documents), at no cost, expense, or liability to the Other Party, in the Notifying Party’s attempt
to effectuate such exchange, but the Other Party makes no representations to the

37

 

Notifying Party that any such exchange shall be treated as “tax-free” by the Internal Revenue
Service. The Notifying Party agrees to indemnify the Other Party from all liability with respect
to any action which the Notifying Party requests the Other Party to take pursuant to this Section
17 and to reimburse the Other Party for all fees, costs, and expenses (including reasonable
attorney’s fees) incurred by the Other Party as a result of the Notifying Party’s election to
participate in a Section 1031 exchange. The Other Party shall not be required to hold title to any
real estate or other assets in order to cooperate with the Notifying Party’s Section 1031 exchange.
The provisions of this Section 17 shall survive Closing.

[Signature Page to Follow]

38

 

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

	 	 	 	 	 
	 	 	SELLER:
	 
	 	 	 	 
	 	 	BREOF BNK FANNIN LP, a Delaware limited partnership
	 
	 	 	 	 
	 

	 	By:
	 	BREOF BNK Fannin GP LLC, a

Delaware limited liability company, its

general partner

	 	 	 	 	 
	 

	 	By:
	 	BREOF BNK LLC, a Delaware

limited liability company, its sole

member

	 	 	 	 	 
	 

	 	By:
	 	/s/ Steven H. Ganeless
	 

	 	 	 	 
	 

	 	 	 	Name:     Steven H. Ganeless
	 

	 	 	 	Its:     President

	 	 	 	 	 
	 	 	BREOF BNK PHOENIX LLC, a Delaware limited liability company
	 
	 	 	 	 
	 

	 	By:
	 	BREOF BNK LLC, a Delaware limited

liability company, its sole member

	 	 	 	 	 
	 

	 	By:
	 	/s/ Steven H. Ganeless
	 

	 	 	 	 
	 

	 	 	 	Name:      Steven H. Ganeless
	 

	 	 	 	Its:     President

	 	 	 	 	 
	 	 	BUYER:
	 
	 	 	 	 
	 	 	CRZ PHOENIX I LLC, a Delaware limited liability company
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Clifford E. Lai
	 

	 	 	 	 
	 

	 	 	 	Name:     Clifford E. Lai
	 

	 	 	 	Its:     President and Chief Executive Officer

39

 

EXHIBIT A-1

LEGAL DESCRIPTION OF FANNIN FEE LAND

All that certain 33,810 square foot parcel of land comprising all of Lots 1 through 5 and part of
Lots 11 & 12, Block 254, S.S.B.B., according to the generally recognized plat and also including
that certain 2.4’ X 132.9’ strip out of original San Jacinto Street adjacent to Block 254 created
by the building line described in the City of Houston Motion No. 8076, dated July 6, 1925 and filed
for record on May 31, 1951 at Volume 2289, Page 381 of the Harris County Deed Records, same being
all those certain lands described as Tract 1 (fee) & Tract 2 (Lease) in a Deed dated July 30, 1989
from Collecting Bank, N.A. to DPC Properties, Inc. filed in the Official Public Records of Real
Property of Harris County, Texas at Clerk’s File No. M240239, Film Code No. 152-62-0024, out of the
J.S. Holman Survey, Abstract No. 323, Harris County, Texas and being more particularly described by
metes and bounds as follows:

Commencing at the City of Houston Engineering Department Reference Rod No. 830 located in the City
of Houston Engineering Department Reference Line for San Jacinto Street (width varies) at its
intersection with the easterly projection of the southerly line of said Block 254; Thence N 55
degrees 00’00“W — 37.60’ to a found nail set in lead plug marking the POINT OF BEGINNING of the
herein described parcel;

THENCE N 55 degrees 00’00” W, passing the theoretical southeast corner of said Block 254 at 2.4’
and continuing with the northerly right-of-way line of Dallas Avenue (80’ wide) for a total
distance of 254.40’ to a found nail set in lead plug for corner,

THENCE N 35 degrees 00’00“E — 132.90’ with the easterly right-of-way line of Fannin Street (80’
wide) to a found nail for corner,

THENCE S 55 degrees 00’00“E passing the theoretical easterly line of said Block 254 at 252.0’ and
continuing for a total distance of 254.40’ to a point for corner,

THENCE S 35 degrees 00’00“W — 132.90’ with the easterly line of the aforementioned 2.4’ X 132.9’
strip to the POINT OF BEGINNING and containing 33,810 square feet (0.7762 acre) of land, more or
less.

SAVE & EXCEPT:

All that certain 11,572 square foot parcel of land comprised of a part of Lots 1 through 3 and part
of Lots 11 & 12, Block 254, S.S.B.B., according to the generally recognized plat and also including
a pan of that certain 2.4’ X 132.9’ strip out of original San Jacinto Street adjacent to Block 254
created by the building line described in the City of Houston Motion No. 8076, dated 7-6-1925 and
filed for record on 5-31-1951 at Volume 2289, Page 381 of the Harris County Deed Records, same
being all that certain land described as Tract 2 (lease) in a deed dated 7-30-1989 from Collecting
Bank, NA to DPC Properties, Inc. filed in the Official Public Records of Real Property of Harris
County, Texas at Clerk’s File No. M-240239, Film Code No. 152-62-

A-1-1

 

0024, out of the J.S. Holman Survey, A-323, Harris County, Texas and being more particularly
described by metes and bounds as follows:

Commencing at the City of Houston Engineering Department Reference Rod No. 830 located in the City
of Houston Engineering Department Reference Line for San Jacinto Street (width varies) at its
intersection with the easterly projection of the southerly line of said Block 254; Thence N 55
degrees 00’00“W — 136.80’ with said easterly projection of Block 254 and the northerly
right-of-way line of Dallas Avenue (80’ Wide) to the POINT OF BEGINNING of the herein described
parcel,

THENCE N 55 degrees 00’00“W — 50.30’ continuing with said northerly right-of-way line of Dallas
Avenue to a point for corner,

THENCE N 35 degrees 48’00“E — 132.63’ with the easterly line of a 14,064 square foot tract
described as Tract 1 in aforementioned deed from Collecting Bank, N.A. to DPC Properties, Inc. to a
point for corner,

THENCE S 54 degrees 20’40“E — 49.65’ with a southerly line of a 206 square foot tract described as
Tract 1 in said deed from Collecting Bank, N.A. to DPC Properties, Inc. to a point for corner,

THENCE S 35 degrees 31’00“W — 0.95’ with a westerly line of said 206 square foot tract described
as Tract 1 in said deed from Collecting Bank, N.A. to DPC Properties, Inc. to a point for corner;

THENCE S 54 degrees 58’36“E — 98.00’ with a southerly line of said 206 square foot tract described
as Tract 1 in the deed from Collecting Bank, N.A. to DPC Properties, Inc. to a point for corner,

THENCE S 35 degrees 00’00“W — 50.46’ with the easterly line of the aforementioned 2.4’ X 132.9’
strip to a point for corner,

THENCE N 55 degrees 00’00“W — 98.47’ with a northerly line of a 7,966 square foot tract described
as Tract 1 in said deed from Collecting Bank, N.A. to DPC Properties, Inc. to a point for corner,

THENCE S 35 degrees 31’00“W — 80.60’ with a westerly line of said 7,966 square foot tract
described as Tract I in the deed from Collecting Bank, N.A. to DPC Properties, Inc. to the

POINT OF BEGINNING and containing 11,752 square feet (0.2657 acre) of land, more or less.

A-1-2

 

EXHIBIT A-2

LEGAL DESCRIPTION OF FANNIN GROUND LEASED LAND

All that certain 11,572 square foot parcel of land comprised of a part of Lots 1 through 3 and part
of Lots 11 & 12, Block 254, S.S.B.B., according to the generally recognized plat and also including
a pan of that certain 2.4’ X 132.9’ strip out of original San Jacinto Street adjacent to Block 254
created by the building line described in the City of Houston Motion No. 8076, dated 7-6-1925 and
filed for record on 5-31-1951 at Volume 2289, Page 381 of the Harris County Deed Records, same
being all that certain land described as Tract 2 (lease) in a deed dated 7-30-1989 from Collecting
Bank, NA to DPC Properties, Inc. filed in the Official Public Records of Real Property of Harris
County, Texas at Clerk’s File No. M-240239, Film Code No. 152-62-0024, out of the J.S. Holman
Survey, A-323, Harris County, Texas and being more particularly described by metes and bounds as
follows:

Commencing at the City of Houston Engineering Department Reference Rod No. 830 located in the City
of Houston Engineering Department Reference Line for San Jacinto Street (width varies) at its
intersection with the easterly projection of the southerly line of said Block 254; Thence N 55
degrees 00’00“W — 136.80’ with said easterly projection of Block 254 and the northerly
right-of-way line of Dallas Avenue (80’ Wide) to the POINT OF BEGINNING of the herein described
parcel;

THENCE N 55 degrees 00’00“W — 50.30’ continuing with said northerly right-of-way line of Dallas
Avenue to a point for corner,

THENCE N 35 degrees 48’00“E — 132.63’ with the easterly line of a 14,064 square foot tract
described as Tract 1 in aforementioned deed from Collecting Bank, N.A. to DPC Properties, Inc. to a
point for corner,

THENCE S 54 degrees 20’40“E — 49.65’ with a southerly line of a 206 square foot tract described as
Tract 1 in said deed from Collecting Bank, N.A. to DPC Properties, Inc. to a point for corner;

THENCE S 35 degrees 31’00“W — 0.95’ with a westerly line of said 206 square foot tract described
as Tract 1 in said deed from Collecting Bank, N.A. to DPC Properties, Inc. to a point for corner;

THENCE S 54 degrees 58’36“E — 98.00’ with a southerly line of said 206 square foot tract described
as Tract 1 in the deed from Collecting Bank, N.A. to DPC Properties, Inc. to a point for corner,

THENCE S 35 degrees 00’00“W — 50.46’ with the easterly line of the aforementioned 2.4’ X 132.9’
strip to a point for corner,

A-2-1

 

THENCE N 55 degrees 00’00“W — 98.47’ with a northerly line of a 7,966 square foot tract described
as Tract 1 in said deed from Collecting Bank, N.A. to DPC Properties, Inc. to a point for corner,

THENCE S 35 degrees 31’00“W — 80.60’ with a westerly line of said 7,966 square foot tract
described as Tract I in the deed from Collecting Bank, N.A. to DPC Properties, Inc. to the POINT OF
BEGINNING and containing 11,752 square feet (0.2657 acre) of land, more or less.

A-2-2

 

EXHIBIT A-3

LEGAL DESCRIPTION OF PHOENIX BUILDING LAND

PARCEL NO. 2:

LOTS 1 TO 12, INCLUSIVE, BLOCK 7, ORIGINAL TOWNSITE OF PHOENIX, ACCORDING TO BOOK 2 OF MAPS, PAGE
51, RECORDS OF MARICOPA COUNTY, ARIZONA;

TOGETHER WITH THE VACATED EAST-WEST ALLEY LOCATED IN SAID BLOCK 7;

EXCEPT THE FOLLOWING DESCRIBED PARCELS:

A. THE NORTH 7.75 FEET OF LOTS 1, 3, 5, 7, 9 AND 11.

B. BEGINNING AT A POINT 12.5 FEET WEST OF THE NORTHEAST CORNER OF LOT 5, BLOCK 7;

THENCE SOUTH 68 FEET 1 INCH;

THENCE WEST 75 FEET;

THENCE NORTH 68 FEET 8 INCHES;

THENCE EAST 75 FEET TO THE PLACE OF BEGINNING;

EXCEPT THE NORTH 7.75 FEET.

C. THE SOUTH 50 FEET OF LOTS 9 AND 11, BLOCK 7; AND

THAT PORTION OF LOTS 5 AND 7, BLOCK 7, DESCRIBED AS FOLLOWS:

BEGINNING AT A POINT ON THE NORTH LINE OF THE VACATED EAST-WEST ALLEY, 112.5 FEET EAST OF THE
SOUTHWEST CORNER OF LOT 11, SAID BLOCK 7;

THENCE NORTH 68 FEET;

THENCE EAST 75 FEET;

THENCE SOUTH 68 FEET;

THENCE WEST 75 FEET TO THE POINT OF BEGINNING; AND

A-3-1

 

EXCEPT TITLE TO ANY MINE OF GOLD, SILVER, CINNABAR OR COPPER OR TO ANY VALID CLAIM OR POSSESSION
HELD UNDER THE EXISTING LAWS OF CONGRESS AS RESERVED IN THE PATENT TO SAID LAND.

PARCEL NO. 3:

ALL THAT PORTION OF LOTS 5 AND 7, BLOCK 7, ORIGINAL TOWNSITE OF PHOENIX, ACCORDING TO BOOK 2 OF
MAPS, PAGE 51, RECORDS OF MARICOPA COUNTY, ARIZONA, DESCRIBED AS FOLLOWS:

BEGINNING AT A POINT 12.5 FEET WEST OF THE NORTHEAST CORNER OF LOT 5, BLOCK 7;

THENCE SOUTH 68 FEET, 1 INCH;;

THENCE WEST 75 FEET;

THENCE NORTH 68 FEET, 8 INCHES;

THENCE EAST 75 FEET TO THE POINT OF BEGINNING;

EXCEPT THE NORTH 7.75 FEET; AND ALSO

EXCEPT TITLE TO ANY MINE OF GOLD, SILVER, CINNABAR OR COPPER OR TO ANY VALID CLAIM OR POSSESSION
HELD UNDER THE EXISTING LAWS OF CONGRESS AS RESERVED IN THE PATENT TO SAID LAND.

PARCEL NO. 4:

THAT PORTION OF LOTS 5, 7, 9 AND 11, BLOCK 7, ORIGINAL TOWNSITE OF PHOENIX, ACCORDING TO BOOK 2 OF
MAPS, PAGE 51, RECORDS OF MARICOPA COUNTY, ARIZONA, DESCRIBED AS FOLLOWS:

THE SOUTH 50 FEET OF LOTS 9 AND 11, BLOCK 7; AND

THAT PORTION OF LOTS 5 AND 7, BLOCK 7, DESCRIBED AS FOLLOWS:

BEGINNING AT A POINT ON THE NORTH LINE OF THE VACATED EAST-WEST ALLEY, 112.5 FEET EAST OF THE
SOUTHWEST CORNER OF LOT 11, BLOCK 7;

THENCE NORTH 68 FEET;

THENCE EAST 75 FEET;

THENCE SOUTH 68 FEET;

THENCE WEST 75 FEET TO THE POINT OF BEGINNING;

A-3-2

 

EXCEPT TITLE TO ANY MINE OF GOLD, SILVER, CINNABAR OR COPPER TO ANY VALID CLAIM OR POSSESSION HELD
UNDER THE EXISTING LAWS OF CONGRESS AS RESERVED IN THE PATENT TO SAID LAND.

A-3-3

 

EXHIBIT A-4

LEGAL DESCRIPTION OF PHOENIX PARKING LAND

PARCEL NO. 1: (GARAGE)

LOTS 1 TO 12, INCLUSIVE, BLOCK 6, ORIGINAL TOWNSITE OF PHOENIX, ACCORDING TO BOOK 2 OF MAPS, PAGE
51, RECORDS OF MARICOPA COUNTY, ARIZONA.

TOGETHER WITH THE VACATED EAST-WEST ALLEY LOCATED IN SAID BLOCK 6;

EXCEPT THE NORTH 7.75 FEET OF LOTS 1, 3, 5, 7, 9 AND 11; AND ALSO

EXCEPT TITLE TO ANY MINE OF GOLD, SILVER, CINNABAR OR COPPER OR TO ANY VALID CLAIM OR POSSESSION
HELD UNDER THE EXISTING LAWS OF CONGRESS AS RESERVED IN THE PATENT TO SAID LAND.

A-4-1

 

EXHIBIT A-5

LEGAL DESCRIPTION OF PHOENIX TUNNEL LEASED LAND

PARCEL NO. 5:

A PORTION OF MONROE STREET AND OF FIRST STREET OF THE ORIGINAL TOWNSITE OF PHOENIX, ACCORDING TO
BOOK 2 OF MAPS, PAGE 51, RECORDS OF MARICOPA COUNTY, ARIZONA AND MORE PARTICULARLY DESCRIBED AS
FOLLOWS:

BEGINNING AT THE SOUTHWEST CORNER OF BLOCK 7 OF SAID ORIGINAL TOWNSITE;

THENCE SOUTH 89 DEGREES 52 MINUTES 52 SECONDS EAST 29.50 FEET ALONG THE SOUTH LINE OF SAID BLOCK 7
TO THE TRUE POINT OF BEGINNING;

THENCE CONTINUING ALONG SAID SOUTH LINE, SOUTH 89 DEGREES 52 MINUTES 52 SECONDS EAST, 270.27 FEET
TO THE SOUTHEAST CORNER OF SAID BLOCK 7;

THENCE ALONG THE EAST LINE OF SAID BLOCK 7, NORTH 0 DEGREES 02 MINUTES 59 SECONDS WEST 223.20 FEET;

THENCE NORTH 89 DEGREES 57 MINUTES 01 SECONDS EAST 15.5 FEET;

THENCE SOUTH 0 DEGREES 02 MINUTES 59 SECONDS EAST ALONG A LINE PARALLEL WITH THE EAST LINE OF SAID
BLOCK 7, A DISTANCE OF 58.95 FEET;

THENCE NORTH 89 DEGREES 57 MINUTES 01 SECONDS EAST 66 FEET;

THENCE NORTH 00 DEGREES 02 MINUTES 59 SECONDS WEST 13.00 FEET;

THENCE NORTH 89 DEGREES 57 MINUTES 01 SECONDS EAST 18.5 FEET TO THE WEST LINE OF BLOCK 6 OF SAID
ORIGINAL TOWNSITE OF PHOENIX, ARIZONA;

THENCE SOUTH 0 DEGREES 02 MINUTES 59 SECONDS EAST ALONG THE WEST LINE OF SAID BLOCK 6, A DISTANCE
OF 43.00 FEET;

THENCE SOUTH 89 DEGREES 57 MINUTES 01 SECONDS WEST 8.13 FEET;

THENCE NORTH 0 DEGREES 02 MINUTES 59 SECONDS WEST 4.00 FEET;

THENCE SOUTH 89 DEGREES 57 MINUTES 01 SECONDS WEST 76.37 FEET;

THENCE SOUTH 0 DEGREES 02 MINUTES 59 SECONDS EAST 134.66 FEET ALONG A LINE PARALLEL WITH THE EAST
LINE OF SAID BLOCK 7;

A-5-1

 

THENCE SOUTH 44 DEGREES 46 MINUTES 19 SECONDS WEST 24.09 FEET;

THENCE NORTH 89 DEGREES 52 MINUTES 52 SECONDS WEST 268.83 FEET ALONG A LINE PARALLEL WITH THE SOUTH
LINE OF SAID BLOCK 7;

THENCE NORTH 0 DEGREES 07 MINUTES 08 SECONDS EAST 13.5 FEET TO THE TRUE POINT OF BEGINNING;

EXCEPT TITLE TO ANY MINE OF GOLD, SILVER, CINNABAR OR EXISTING LAWS OF CONGRESS AS RESERVED IN THE
PATENT TO SAID LAND.

PARCEL NO. 6:

A PORTION OF MONROE STREET OF THE ORIGINAL TOWNSITE OF PHOENIX, ACCORDING TO BOOK 2 OF MAPS, PAGE
51, RECORDS OF MARICOPA COUNTY, ARIZONA, MORE PARTICULARLY DESCRIBED AS FOLLOWS:

BEGINNING AT THE SOUTHWEST CORNER OF BLOCK 7 OF SAID ORIGINAL TOWNSITE;

THENCE SOUTH 89 DEGREES 52 MINUTES 52 SECONDS EAST ALONG THE SOUTH LINE OF SAID BLOCK 7, A DISTANCE
OF 110.00 FEET;

THENCE SOUTH 0 DEGREES 07 MINUTES 08 SECONDS WEST, A DISTANCE OF 13.50 FEET TO A POINT, THE TRUE
POINT OF BEGINNING;

THENCE CONTINUING SOUTH 0 DEGREES 07 MINUTES 08 SECONDS WEST, A DISTANCE OF 54.50 FEET;

THENCE SOUTH 89 DEGREES 52 MINUTES 52 SECONDS EAST PARALLEL TO SAID SOUTH LINE, A DISTANCE OF 8.00
FEET;

THENCE NORTH 0 DEGREES 07 MINUTES 08 SECONDS EAST, A DISTANCE OF 54.50 FEET;

THENCE NORTH 89 DEGREES 52 MINUTES 52 SECONDS WEST PARALLEL WITH SAID SOUTH LINE A DISTANCE OF 8.00
FEET TO THE TRUE POINT OF BEGINNING;

EXCEPT TITLE TO ANY MINE OF GOLD, SILVER, CINNABAR OR COPPER TO ANY VALID CLAIM OR POSSESSION HELD
UNDER THE EXISTING LAWS OF CONGRESS AS RESERVED IN PATENT TO SAID LAND.

A-5-2

 

EXHIBIT B

DUE DILIGENCE MATERIALS

Best and Final Documentation — Phoenix

          Capital Expenditures — 201 North Central Avenue & 1111 Fannin

          201 North Central Avenue

Phoenix Site Plan

Phoenix Aged Receivables

Phoenix Property Condition Report with Capital

Phoenix Environmental Phase I Report

Phoenix Rentable Area Verification Letter (from LUFT)

Phoenix Certification of Occupancy

Phoenix Chase Tower Plaza Renovation Drawings

Phoenix Lease Abstracts

          Title Exception/Vesting Documents

Exception 08

Exception 09

Exception 10

Exception 11

Exception 11a

          Third Party Leases

NBC Telemundo

NW Communications of Phoenix

Overall Wireless Communications Corp.

Petals & Kettels

Phoenix Chamber of Commerce

Reliance Build

Ridenour Hienton Harper & Kelhoffer

Scripps Howard Broadcasting

Tina Eaves

Webline Wireless

Arizona Club

The Harbor Club Seattle

Arch Wireless Operating Co.

Bell South Wireless Data

Federal Express Corp.

James D. Guest DDS

Metrocall

Motient Communications

May Potenza & Baran

          Estoppels

Ridenour, Hienton, Harper & Kelhoffer, PLLC

Arizona Club

Chamber of Commerce

     Best and Final Documentation — Phoenix Garage

2005, December Operating Statement

2006, July Operating Statement

Second Amendment to Standard Parking Agreement

     Best and Final Documentation — Houston

Capital Expenditures — 201 North Central Avenue & 1111 Fannin

Floor Plans

B-1

 

     1111 Fannin

Houston Property Condition Report with Capital

Houston Tunnel Agreement

Houston Environmental Phase I Report

Houston Certificate of Occupancy

Houston Rentable Area Verification Letter (from LUFT)

Houston Fire Inspection Report

Houston Site Plan

Houston Lease Abstracts

Estoppel — Tunnel Agreement

     Title Exception/Vesting Documents

Original Ground Lease Agreement

Warranty Deed and Ground Lease Assignment

Exception 10a

Exception 10b — Confirmation of Tunnel Agreement

Exception 10b — Memorandum of Tunnel Agreement

Exception 10c — Deed and Ground Lease Assignment

Exception 10c — Memorandum of Lease

Exception 10d — Easement Agreement

     Third Party Leases

Randstad US

Irma Mazanalee

Khalil Samam dba Out to Lunch

ORIGINAL DUE DILIGENCE

Offering Memorandum

Brookfield OM

201 North Central Avenue — Phoenix, AZ

JP Morgan Lease

201 North Central Avenue Survey

Pro Forma Title Policy — September 2006

Argus Files

201 North Central Avenue Argus

201 North First Street Garage — Phoenix, AZ

Parking Agreement

Tax Bills 2005

Tax Bills 2006

Downtown Phoenix Parking Study

Tunnel Lease

Financials

Pro Forma Cash Flow Notes

Draft 2007 Budget

1111 Fannin — Houston, TX

Survey

JPMorgan Lease

Pro Forma Title Policy

Argus Files

1111 Fannin Argus File

Ground Lease Documentation

Houston Lease Agreement

Houston Memorandum of Lease

B-2

 

Houston Warranty Deed and Ground Lease Assignment with Vendor’s Lien

Houston Substitute Trustee’s Deed

Houston General Warranty Deed and Ground Lease Assignment

Houston Clarification Substitute Trustee’s Deed

Houston Deed and Ground Lease Assignment

Phoenix Tunnel Lease (as defined in Agreement)

Phoenix Tunnel Sublease (as defined in Agreement)

JP Sublease Letter Agreement (as defined in Agreement)

The Title Commitment (as defined in the Agreement)

The Survey (as defined in the Agreement)

All documents of record referenced in the Title Commitment (as defined in the Agreement)

Landlord Estoppel Certificate dated September 26, 2006 executed by Mary Ann Laro, as landlord,
under the Fannin Ground Lease (as defined in the Agreement).

Landlord Estoppel Certificate dated September 27, 2006 executed by The City of Phoenix, as
landlord, under the Phoenix Tunnel Lease.

B-3

 

EXHIBIT C

EXCLUDED ITEMS OF TANGIBLE PERSONAL PROPERTY

None.

C-1

 

EXHIBIT D-1

FORM OF SELLER GROUND LESSOR ESTOPPEL LETTER

[SELLER’S ESTOPPEL] FOR

[                    ] (“Landlord”)

WITH RESPECT TO THE LEASED PREMISES LOCATED AT:

[                                        ] (“Property”)

                         , a                      (“Seller”), pursuant to that certain
Agreement of Purchase and Sale dated January ___, 2007 (as same may be amended, the “Purchase
Agreement”), by and between Seller and                     , a                      (“Buyer”),
hereby certifies to Buyer and its successors and assigns that, to Seller’s knowledge (as defined in
Section 6.2(b) of the Purchase Agreement), the matters set on the Ground Lessor Estoppel
Certificate attached hereto as Exhibit A are true and correct as of the date hereof;
provided, however, that the foregoing certification shall in no event be deemed to be a
certification with respect to matters relating to the physical or environmental condition of the
Property. In accordance with Section 4.4 of the Purchase Agreement, if the Landlord provides an
estoppel certificate dated after the date hereof, then this Seller’s Estoppel will be null and void
(as if Seller had not delivered this certificate) as and to the extent that such estoppel
certificate delivered by Landlord discloses matters which are consistent with those matters set
forth in this Seller’s Estoppel. In all events, this Seller’s Estoppel will be null and void at
11:59 p.m. on                     , 2007 [TO INSERT 6-MONTH ANNIVERSARY OF CLOSING DATE] (i.e., meaning that
in order to bring a claim under this Seller’s Estoppel, a party must provide the undersigned party
with written notice of its claim on or before said date and commence an action with respect to such
claim within thirty (30) days after delivery of such notice).

     IN WITNESS WHEREOF, the undersigned has executed this Seller’s Estoppel as of this                      day of                     ,
2007.

	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	, a	 	 
	 

	 	 	 	 
	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Name:	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Title:	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Address:	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 

D-1-1

 

EXHIBIT A TO SELLER ESTOPPEL CERTIFICATE

ATTACH COPY OF UNEXECUTED LANDLORD ESTOPPEL

A-1

 

EXHIBIT E

LIST OF CONTRACTS

Verbal Agreement between BREOF Phoenix and Standard Parking concerning the management of the
Phoenix Parking Deck — Note: Upon Buyer’s request, Seller will terminate this verbal agreement on
or before Closing. Seller makes no representation regarding its ability to assign this verbal
agreement to Buyer at Closing.

E-1

 

EXHIBIT F

LIST OF VIOLATIONS

None.

F-1

 

EXHIBIT G

LIST OF LITIGATION

None.

G-1

 

EXHIBIT H-1

DESCRIPTION OF JPMORGAN LEASES

     1. JPMorgan Chase Net Lease Agreement of Lease dated September 27, 2006 between BREOF Phoenix,
as landlord, and JPMorgan, as tenant.

     2. JPMorgan Chase Net Lease Agreement of Lease dated September 27, 2006 between BREOF Fannin,
as landlord, and JPMorgan, as tenant.

H-1-1

 

EXHIBIT H-2

LIST OF OTHER LEASES

I. PHOENIX:

	 	 	 
	Tenant	 	Lease Documents
	James D. Guest, D.D.S.

	 	Lease dated May 11, 1998
Amendment to Lease dated
December 27, 2001
Second Amendment to Lease dated
June ___, 2006
	 
	 	 
	Arch Wireless Operating
Company, Inc.

	 	Antenna Site License Agreement dated September 29,
2004
	 
	 	 
	Judy K. Landes (as successor
by assignment to Mary Ann
Boring) dba Petals and
Kettles

	 	Lease Agreement dated June 18, 2002
Assignment of
Lease dated September 8, 2003
	 
	 	 
	Phoenix Chamber of Commerce

	 	Bank One Center Office Lease dated August 31,
1993
First Amendment to Lease dated August 31,
2002
Second Amendment to Lease dated July 16, 2004
	 
	 	 
	NW Communications of Phoenix,
Inc., on behalf of its
station KSAZ

	 	Antenna Site License Agreement dated April 1,
2002
First Amendment to Antenna Site License
Agreement dated June 18, 2002
	 
	 	 
	Tina Eaves

	 	License Agreement dated March 23, 2005
	 
	 	 
	Motient Communications, Inc.
(formerly Ardis Company)

	 	Antenna Site License Agreement dated May 30,
1996
First Amendment to Antenna Site License
Agreement dated March 18, 1998
Second Amendment to
Antenna Site License Agreement dated November 5,
2002
Third Amendment to Antenna Site License
Agreement dated November 1, 2003
	 
	 	 
	NBC Telemundo Phoenix, Inc.

	 	License Agreement dated March 1, 2004
	 
	 	 
	May, Potenza & Baran, P.C.
successor in interest to May,
Potenza, Judson & Baran, P.C.

	 	Office Lease dated March 7, 1996
First Amendment to
Office Lease dated February 6, 2001
Second
Amendment to Office Lease dated September 12,
2002
Storage Lease dated October 22, 2002
Third
Amendment to Office Lease dated November 14,
2003
Fourth Amendment to Office Lease dated January
13, 2004
Fifth Amendment to Office Building Lease
dated May ___, 2006
	 
	 	 
	Ridenour, Hienton, Harper &
Kelhoffer, P.L.L.C.

	 	Lease Agreement dated June 3, 2002
First Amendment
to Lease Agreement dated December 24, 2002
	 
	 	 
	Scripps Howard Broadcasting

	 	Antenna Site License Agreement dated December 20,

H-2-1

 

	 	 	 
	Tenant	 	Lease Documents
	Company

	 	2005
	 
	 	 
	Metrocall, Inc.

	 	Antenna Site License Agreement, dated February 18,
1997
	 
	 	 
	Federal Express Corporation

	 	Antenna Site License Agreement, dated December 19,
1995
	 
	 	 
	Bell South Wireless Data, L.P.

	 	Antenna Site License Agreement, dated July 10, 2000
	 
	 	 
	Webline Wireless, Inc. aka
USA Mobility

	 	Antenna Site License Agreement dated January 5,
1996
Amendment to Antenna Site License Agreement
dated September 15, 1997
Second Amendment to
Antenna Site License Agreement dated August 1,
1998
Third Amendment to Antenna Site License
Agreement dated December 30, 2002
	 
	 	 
	The Harbor Club Seattle (aka 

The Arizona Club)

	 	Lease dated July 27, 2006 (which incorporates by
reference the following: Dining Club Lease dated
December 16, 1999
First Amendment to Lease
Agreement dated September 17, 2001
Second Amendment
to Lease Agreement dated February 7, 2002
Third
Amendment to Lease Agreement dated May 13,
2003
Lease Termination Letter, dated
                    , terminating the lease effective as
of May 31, 2005)
	 
	 	 
	Overall Wireless
Communications Corp. (NRTC)

	 	Antenna Site License Agreement dated February 18,
1997
	 
	 	 
	Reliance Build, Inc,.

	 	Lease dated March 31, 1994
First Amendment to Lease
dated February 16, 1998
Second Amendment to Lease
dated February 21, 2002
Third Amendment to Lease
dated February 21, 2003
Fourth Amendment to Lease
dated December 12, 2003

II. FANNIN:

	 	 	 
	Tenant	 	Lease Documents
	Khalil Samam, d/b/a
Out to Lunch Café
(successor-in-interest
by assignment from
Man Ki Moon)

	 	Lease Agreement dated February 18, 1999
Assignment and Assumption of Lease Agreement dated
September 29, 2000
First Amendment to Lease dated October 1, 2003
Second Amendment to Lease dated September 1, 2005
	 
	 	 
	Irma Manzanales

	 	Lease Agreement dated August 12, 2005 Rent
Commencement Letter
	 
	 	 
	Randstad US L.P.

	 	Lease Agreement dated September 6, 2000 Amendment
to Lease dated October ___, 2005

H-2-2

 

EXHIBIT I

ASSIGNMENT AND ASSUMPTION OF CONTRACTS

     THIS ASSIGNMENT AND ASSUMPTION OF CONTRACTS (this “Assignment”) is made and entered into as of
                    , 2007, by and between                     , a                     
(“Assignor”), and                     , a                      (“Assignee”).

Recitals

     A. Assignor and                     , collectively as seller, and Assignee, as buyer, entered into
that certain Agreement of Purchase and Sale dated as of                     , 2007 (the “Agreement”),
pursuant to which Assignor agreed to sell to Assignee, and Assignee agreed to acquire from
Assignor, among other things, Assignor’s interest in the property commonly known as
                     and legally described on Exhibit A attached hereto (the “Property”).

     B. As part of the acquisition transaction contemplated by the Agreement, Assignor has agreed
to assign to Assignee, and Assignee has agreed to assume, any and all rights and responsibilities
under those Contracts (as such term is defined in the Agreement) that relate to the Property, a
schedule of which is attached hereto as Exhibit B and incorporated herein by this reference
(herein, the “Property Contracts”), but only to the extent assignable without any fee payable to,
or further consent from, any third party.

     NOW, THEREFORE, in consideration of the foregoing and the mutual covenants contained herein,
and for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, Assignor and Assignee agree as follows:

     1. Transfer and Assignment by Assignor. Assignor hereby transfers and assigns to
Assignee all of Assignor’s right, title and interest in and under the Property Contracts, if any
and only to the extent assignable without any fee payable to, or any further consent from, any
third party.

     2. Assumption by Assignee. Assignee hereby accepts the foregoing assignment and
assumes and agrees to perform all of the duties, obligations, liabilities, commitments and
covenants of Assignor accruing from and after the date hereof with respect to or arising under each
of the Property Contracts; provided that Assignee further agrees to perform all of the duties,
obligations, liabilities, commitments and covenants under the Property Contracts relating to the
physical or environmental condition of Property regardless of whether such duties, obligations,
liabilities, commitments or covenants arose or accrued (or arise or accrue) prior to, on or after
Closing (as defined in the Agreement) and regardless of whether such conditions exist or come into
existence prior to, on or after Closing (as defined in the Agreement).

     3. Indemnification by Assignor. Assignor hereby agrees to indemnify, defend and hold
harmless Assignee, and its partners, officers, directors, members, shareholders, affiliates,
managers, employees and agents, from, of and against any and all claims, demands, liabilities,

I-1

 

losses, damages, costs and expenses (including, without limitation, reasonable attorneys’
fees) arising out of or relating to the breach by Assignor of any of the obligations, terms or
covenants of Assignor under or pursuant to the Property Contracts, which obligations, terms or
covenants accrued prior to the date hereof; provided, however, that Assignor shall have no
obligation hereunder to so indemnify, defend or hold harmless the aforementioned parties with
respect to breaches by Assignor of obligations, terms or covenants under or pursuant to the
Property Contracts that relate to the physical or environmental condition of the Property,
regardless of whether such obligations, terms or covenants arose or accrued (or arise or accrue)
prior to, on or after Closing and regardless of whether such conditions exist or come into
existence prior to, on or after Closing. The indemnification obligation contained in this Section
3 shall be subject to the limitations on liabilities and other provisions contained in the
Agreement relating to the Assignor’s liability.

     4. Indemnification by Assignee. Assignee hereby agrees to indemnify, defend and hold
harmless Assignor, and its partners, officers, directors, members, shareholders, affiliates,
managers, employees and agents, from, of and against any and all claims, demands, liabilities,
losses, damages, costs and expenses (including, without limitation, reasonable attorneys’ fees)
arising out of or relating to (i) the breach by Assignor or Assignee of those obligations, terms or
covenants under or pursuant to the Property Contracts which relate to the physical or environmental
condition of the Property, irrespective of whether same arose or accrued (or arises or accrues)
prior to, on or after the Closing, and (ii) the breach by Assignee of any of the other obligations,
terms or covenants of Assignor under or pursuant to the Property Contracts, which obligations,
terms or covenants accrue from and after the date hereof. The indemnification obligation contained
in this Section 4 shall be subject to all applicable limitations on liabilities and other
provisions contained in the Agreement relating to Assignee’s liability.

     5. Further Assurances. The parties hereto covenant and agree to execute such further
instruments and take such further action as may be reasonably required by either party to fully
effectuate the terms and provisions of this Assignment and the transactions contemplated herein.

     6. Survival of Provisions. The covenants and obligations contained in this Assignment
shall survive the consummation of the closing of the transactions contemplated by the Agreement and
this Assignment shall bind and inure to the benefit of the parties hereto and their respective
successors and assigns.

     7. Attorneys’ Fees and Costs. If either party commences an action for the judicial
interpretation, reformation, enforcement or rescission hereof, the prevailing party will be
entitled to a judgment against the other party for an amount equal to reasonable attorneys’ fees
and court and other costs incurred.

     8. Governing Law. This Assignment shall be governed by and construed in accordance
with the laws of the State of                     .

     9. Counterparts. This Assignment may be executed in counterparts which, when
integrated, shall constitute one original of this Assignment.

I-2

 

     10. Conflict. In the event of any conflict or inconsistency between the terms hereof
and the terms of the Agreement, the terms of the Agreement shall govern and control. Without
limitation of the foregoing, all limitations on liability expressly set forth in the Agreement
shall apply to this Assignment and the liabilities of the parties hereunder.

     11. No Representation. Except as expressly set forth in the Agreement, it is hereby
acknowledged that Assignor makes no representation or warranty of any kind or nature relative to
the Property Contracts being assigned hereunder, including, without limitation, any representation
or warranty regarding Assignor’s title or other interest therein or Assignor’s right to assign or
transfer the same. Without limitation of any representations or warranties expressly set forth in
the Agreement, this Assignment constitutes a quitclaim assignment only, and is intended to assign
and transfer only such rights which Assignor may have, if any, with respect to the Property
Contracts.

[SIGNATURES ON FOLLOWING PAGE]

I-3

 

     IN WITNESS WHEREOF, the parties hereto have caused this Assignment to be executed by their
duly authorized officers on the date first written above.

	 	 	 	 	 	 	 
	ASSIGNOR:	 	 	 	ASSIGNEE:
	 
	 	 	 	 	 	 
	 
	,	 	 	a	 	 
	 	 	 	 	  ,
	 

	 	 	 	 	 	 
	 
	 	 	 	a	 	 
	 

	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	By:	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	 	 	 	 	Name:	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Name:
	 	 	 	 	 	 	 	Title:	 	 
	 

	 	 	 	 
	 	 	 	 	 	 	 	 
	 

	 	Its:	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 

I-4

 

EXHIBIT A TO ASSIGNMENT AND ASSUMPTION OF CONTRACTS

LEGAL DESCRIPTION OF PROPERTY

A-1

 

EXHIBIT B TO ASSIGNMENT AND ASSUMPTION OF CONTRACTS

SCHEDULE OF PROPERTY CONTRACTS

I-1

 

EXHIBIT J

ASSIGNMENT AND ASSUMPTION OF

LICENSES AND PERMITS AND WARRANTIES

     THIS ASSIGNMENT AND ASSUMPTION OF LICENSES AND PERMITS AND WARRANTIES (this “Assignment”) is
made and entered into as of                     , 2007, by and between
                                        , a                      (“Assignor”), and
                                        , a                                         
 (“Assignee”).

Recitals

     A. Assignor and                     , collectively as seller, and Assignee, as buyer, entered into
that certain Agreement of Purchase and Sale dated as of                     , 2007 (the “Agreement”),
pursuant to which Assignor agreed to sell to Assignee, and Assignee agreed to acquire from
Assignor, among other things, Assignor’s interest in the property commonly known as                      and
legally described on Exhibit A attached hereto (the “Property”).

     B. As part of the acquisition transaction contemplated by the Agreement, Assignor has agreed
to assign to Assignee, and Assignee has agreed to assume, any and all of Assignor’s right, title
and interest to those Licenses and Permits and those Warranties (as such terms are defined in the
Agreement, which definitions are restated on Exhibit B attached hereto and incorporated herein by
this reference) that relate to the Property, but only to the extent assignable without any fee
payable to, or further consent from, any third party.

     NOW, THEREFORE, in consideration of the foregoing and the mutual covenants contained herein,
and for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, Assignor and Assignee agree as follows:

     1. Transfer and Assignment by Assignor. Assignor hereby transfers and assigns to
Assignee all of Assignor’s right, title and interest in and under those Licenses and Permits and
those Warranties that relate to the Property, if any and only to the extent assignable without any
fee payable to, or any further consent from, any third party.

     2. Assumption by Assignee. Assignee hereby accepts the foregoing assignment and
assumes and agrees to perform any and all of the duties, obligations, liabilities, commitments and
covenants of Assignor accruing from and after the date hereof with respect to or arising under each
of the Licenses and Permits and the Warranties that relate to the Property; provided that Assignee
further agrees to perform all of the duties, obligations, liabilities, commitments and covenants
under the Licenses and Permits and the Warranties relating to the physical or environmental
condition of Property regardless of whether such duties, obligations, liabilities, commitments or
covenants arose or accrued (or arise or accrue) prior to, on or after Closing (as defined in the
Agreement) and regardless of whether such conditions exist or come into existence prior to, on or
after Closing.

J-1

 

     3. Indemnification by Assignor. Assignor hereby agrees to indemnify, defend and hold
harmless Assignee, and its partners, officers, directors, members, shareholders, affiliates,
managers, employees and agents, from, of and against any and all claims, demands, liabilities,
losses, damages, costs and expenses (including, without limitation, reasonable attorneys’ fees)
arising out of or relating to the breach by Assignor of any of the obligations, terms or covenants
of Assignor under or pursuant to those Licenses and Permits and those Warranties that relate to the
Property, which obligations, terms or covenants accrued prior to the date hereof; provided,
however, that Assignor shall have no obligation hereunder to so indemnify, defend or hold harmless
the aforementioned parties with respect to breaches by Assignor of obligations, terms or covenants
under or pursuant to those Licenses and Permits or Warranties that relate to the physical or
environmental condition of the Property, regardless of whether such obligations, terms or covenants
arose or accrued (or arise or accrue) prior to, on or after Closing and regardless of whether such
conditions exist or come into existence prior to, on or after Closing. The indemnification
obligation contained in this Section 3 shall be subject to the limitations on liabilities and other
provisions contained in the Agreement relating to the Assignor’s liability.

     4. Indemnification by Assignee. Assignee hereby agrees to indemnify, defend and hold
harmless Assignor, and its partners, officers, directors, members, shareholders, affiliates,
employees, managers and agents, from, of and against any and all claims, demands, liabilities,
losses, damages, costs and expenses (including, without limitation, reasonable attorneys’ fees)
arising out of or relating to (i) the breach by Assignor or Assignee of the obligations, terms or
covenants under or pursuant to the Licenses and Permits and Warranties assigned hereunder which
relate to the physical or environmental condition of the Property, irrespective of whether same
arose or accrued (or arises or accrues) prior to, on or after the Closing, and (ii) the breach by
Assignee of any of the other obligations, terms or covenants of Assignor under or pursuant to the
Licenses and Permits and the Warranties assigned hereunder, which obligations, terms or covenants
accrue from and after the date hereof. The indemnification obligation contained in this Section 4
shall be subject to all applicable limitations on liabilities and other provisions contained in the
Agreement relating to Assignee’s liability.

     5. Further Assurances. The parties hereto covenant and agree to execute such further
instruments and take such further action as may be reasonably required by either party to fully
effectuate the terms and provisions of this Assignment and the transactions contemplated herein.

     6. Survival of Provisions. The covenants and obligations contained in this Assignment
shall survive the consummation of the closing of the transactions contemplated by the Agreement and
this Assignment shall bind and inure to the benefit of the parties hereto and their respective
successors and assigns.

     7. Attorneys’ Fees and Costs. If either party commences an action for the judicial
interpretation, reformation, enforcement or rescission hereof, the prevailing party will be
entitled to a judgment against the other party for an amount equal to reasonable attorneys’ fees
and court and other costs incurred.

     8. Governing Law. This Assignment shall be governed by and construed in accordance
with the laws of the State of                     .

J-2

 

     9. Counterparts. This Assignment may be executed in counterparts which, when
integrated, shall constitute one original of this Assignment.

     10. Conflict. In the event of any conflict or inconsistency between the terms hereof
and the terms of the Agreement, the terms of the Agreement shall govern and control. Without
limitation of the foregoing, all limitations on liability expressly set forth in the Agreement
shall apply to this Assignment and the liabilities of the parties hereunder.

     11. No Representation. Except as expressly set forth in the Agreement, it is hereby
acknowledged that Assignor makes no representation or warranty of any kind or nature relative to
the Licenses and Permits and the Warranties being assigned hereunder, including, without
limitation, any representation or warranty regarding Assignor’s title or other interest therein or
Assignor’s right to assign or transfer the same. Without limitation of any representations or
warranties expressly set forth in the Agreement, this Assignment constitutes a quitclaim assignment
only, and is intended to assign and transfer only such rights which Assignor may have, if any, with
respect to the Licenses and Permits and the Warranties relating to the Property.

J-3

 

     IN WITNESS WHEREOF, the parties hereto have caused this Assignment to be executed by their
duly authorized officers on the date first written above.

	 	 	 	 	 	 	 
	ASSIGNOR:	 	 	 	ASSIGNEE:
	 
	 	 	 	 	 	 
	 
	,	 	 	a	 	 
	 	 	 	 	  ,
	 

	 	 	 	 	 	 
	 
	 	 	 	a	 	 
	 

	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	By:	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	 	 	 	 	Name:	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Name:
	 	 	 	 	 	 	 	Title:	 	 
	 

	 	 	 	 
	 	 	 	 	 	 	 	 
	 

	 	Its:	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 

J-4

 

EXHIBIT A TO

ASSIGNMENT AND ASSUMPTION OF LICENSES

AND PERMITS AND WARRANTIES

LEGAL DESCRIPTION OF PROPERTY

A-1

 

EXHIBIT B TO

ASSIGNMENT AND ASSUMPTION OF

LICENSES AND PERMITS AND WARRANTIES

DEFINITIONS

     Licenses and Permits. All licenses, permits, franchises, certifications,
authorizations, approvals, certificates of occupancy and entitlements issued, approved or granted
by any governmental authority or body having jurisdiction over the “Property” (as defined in the
Agreement) and used in connection with the operation, ownership or maintenance of the “Property”
(as defined in the Agreement) or any part thereof.

     Warranties. All guarantees and warranties of contractors, materialmen, manufacturers,
mechanics or suppliers who have been engaged by Assignor, as seller, or any of its agents to
furnish labor, materials, equipment or supplies to all or any portion of the “Property” (as defined
in the Agreement).

B-1

 

EXHIBIT K

BILL OF SALE

     THIS BILL OF SALE is made by the undersigned,                                         , a
                                         (“Seller”), in favor of and to                              
    
      , a
                                         (“Buyer”).

     WHEREAS, Seller and                     , collectively as seller, and Buyer, as buyer, entered
into that certain Agreement of Purchase and Sale dated as of                     , 2007 (the
“Agreement”), pursuant to which Seller agreed to sell to Buyer, and Buyer agreed to acquire from
Seller, among other things, Seller’s interest in the property commonly known as                      and
legally described on Exhibit A attached hereto (the “Property”), including Seller’s interest in
certain personal property related thereto;

     WHEREAS, as part of the acquisition transaction contemplated by the Agreement, Seller is to
sell, convey, and transfer to Buyer, by bill of sale, the Tangible Personal Property (as defined in
the Agreement) and the Intangible Personal Property (as defined in the Agreement).

     NOW, THEREFORE, pursuant to the Agreement, and in consideration of good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, Seller by these
presents does GIVE, GRANT, CONVEY, ASSIGN, TRANSFER, BARGAIN, SELL, REMISE, RELEASE, ALIENATE, SET
OVER, and CONFIRM, unto Buyer, its successors and assigns, forever, as an entirety, all of Seller’s
right, title, and interest, if any, in and to (a) those items of Tangible Personal Property (as
defined in the Agreement) that relate to the Property; and (b) those items of Intangible Personal
Property (as defined in the Agreement) that relate to the Property.

     Seller makes no representations or warranties whatsoever, regarding said Tangible Personal
Property or the Intangible Personal Property, including, without limitation, any representations or
warranties related to title, quality, merchantability or fitness for a particular purpose.

     In the event of any conflict or inconsistency between the terms hereof and the terms of the
Agreement, the terms of the Agreement shall govern and control. Without limitation of the
foregoing, all limitations on liability expressly set forth in the Agreement shall apply to this
Bill of Sale and the liabilities of Seller hereunder.

K-1

 

     IN WITNESS WHEREOF, Seller has caused this Bill of Sale to be executed by its duly authorized
officer this                      day of                     , 200___.

	 	 	 	 	 	 	 	 	 
	 	 	SELLER:	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	, a
	 	 	 ,	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Its:	 	 	 	 
	 	 	 	 	 	 	 

K-2

 

EXHIBIT A TO BILL OF SALE

LEGAL DESCRIPTION

A-1

 

EXHIBIT L

ASSIGNMENT AND ASSUMPTION OF LEASES

[NOTE: PHOENIX ASSIGNMENT AND ASSUMPTION OF LEASES DOCUMENT WILL ALSO INCLUDE, IN
ADDITION TO THE ASSIGNMENT OF LEASES WITH BUILDING TENANTS, AN ASSIGNMENT OF THE
PHOENIX TUNNEL SUBLEASE].

     THIS ASSIGNMENT AND ASSUMPTION OF LEASES (this “Assignment”) is made and entered into as of
                    , 2007, by and between                     , a
                     (“Assignor”), and                     , a                     
(“Assignee”).

Recitals

     A. Assignor and                     , collectively as seller, and Assignee, as buyer, entered into that
certain Agreement of Purchase and Sale dated as of                     , 2007 (the “Agreement”), pursuant
to which Assignor agreed to sell to Assignee, and Assignee agreed to acquire from Assignor, among
other things, Assignor’s interest in the property commonly known as                      and legally
described on Exhibit A attached hereto (the “Property”), including Assignor’s interest in certain
Leases related thereto.

     B. As part of the acquisition transaction contemplated by the Agreement, Assignor has agreed
to assign to Assignee, and Assignee has agreed to assume, Assignor’s interest as landlord (together
with all rights and obligations relating thereto) under certain Leases (as defined in the
Agreement) that relate to the Property, a schedule of such Leases that relate to the Property and
which are being assigned/assumed hereunder is attached hereto as Exhibit B and incorporated herein
by this reference (herein, the “Property Leases”).

     NOW, THEREFORE, in consideration of the foregoing and the mutual covenants contained herein,
and for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, Assignor and Assignee agree as follows:

     1. Transfer and Assignment by Assignor. Assignor hereby transfers and assigns to
Assignee all of Assignor’s right, title and interest, in, to and under the Property Leases.

     2. Assumption by Assignee. Assignee hereby accepts the foregoing assignment and
assumes and agrees to perform all of the duties, obligations, liabilities, commitments and
covenants of Assignor, accruing from and after the date hereof with respect to or arising under
each of the Property Leases; provided that Assignee further agrees to perform all of the duties,
obligations, liabilities, commitments and covenants under the Property Leases relating to the
physical or environmental condition of Property, regardless of whether such duties, obligations,
liabilities, commitments or covenants arose or accrued (or arise or accrue) prior to, on or after
Closing (as defined in the Agreement) and regardless of whether such conditions exist or come into
existence prior to, on or after Closing (as defined in the Agreement).

L-1

 

     3. Indemnification by Assignor. Assignor hereby agrees to indemnify, defend and hold
harmless Assignee, and its partners, directors, members, shareholders, affiliates, managers,
employees and agents, from, of and against any and all claims, demands, liabilities, losses,
damages, costs and expenses (including, without limitation, reasonable attorneys’ fees) arising out
of or relating to the breach by Assignor of any of the obligations, terms or covenants of Assignor,
under or pursuant to the Property Leases, which obligations, terms or covenants accrued prior to
the date hereof; provided, however, that Assignor shall have no obligation hereunder to so
indemnify, defend or hold harmless the aforementioned parties with respect to breaches by Assignor
of obligations, terms or covenants under or pursuant to the Property Leases that relate to the
physical or environmental condition of the Property, regardless of whether such obligations, terms
or covenants arose or accrued (or arise or accrue) prior to, on or after Closing (as defined in the
Agreement) and regardless of whether such conditions exist or come into existence prior to, on or
after Closing (as defined in the Agreement). The indemnification obligation contained in this
Section 3 shall be subject to the limitations on liabilities and other provisions contained in the
Agreement relating to the Assignor’s liability.

     4. Indemnification by Assignee. Assignee hereby agrees to indemnify, defend and hold
harmless Assignor, and its partners, officers, directors, members, shareholders, affiliates,
managers, employees and agents, from, of and against any and all claims, demands, liabilities,
losses, damages, costs and expenses (including, without limitation, reasonable attorneys’ fees)
arising out of or relating to (i) the breach by Assignor or Assignee of those obligations, terms or
covenants under or pursuant to the Property Leases which relate to the physical or environmental
condition of the Property, irrespective of whether same arose or accrued (or arises or accrues)
prior to, on or after the Closing, and (ii) the breach by Assignee of any of the other obligations,
terms or covenants of Assignor, under or pursuant to the Property Leases, which obligations, terms
or covenants accrue from and after the date hereof. The indemnification obligation contained in
this Section 4 shall be subject to all applicable limitations on liabilities and other provisions
contained in the Agreement relating to Assignee’s liability.

     5. Further Assurances. The parties hereto covenant and agree to execute such further
instruments and take such further action as may be reasonably required by either party to fully
effectuate the terms and provisions of this Assignment and the transactions contemplated herein.

     6. Survival of Provisions. The covenants and obligations contained in this Assignment
shall survive the consummation of the closing of the transactions contemplated by the Agreement and
this Assignment shall bind and inure to the benefit of the parties hereto and their respective
successors and assigns.

     7. Attorneys’ Fees and Costs. If either party commences an action for the judicial
interpretation, reformation, enforcement or rescission hereof, the prevailing party will be
entitled to a judgment against the other party for an amount equal to reasonable attorneys’ fees
and court and other costs incurred.

     8. Governing Law. This Assignment shall be governed by and construed in accordance
with the laws of the State of                     .

L-2

 

     9. Counterparts. This Assignment may be executed in counterparts which, when
integrated, shall constitute one original of this Assignment.

     10. Conflict. In the event of any conflict or inconsistency between the terms hereof
and the terms of the Agreement, the terms of the Agreement shall govern and control. Without
limitation of the foregoing, all limitations on liability expressly set forth in the Agreement
shall apply to this Assignment and the liabilities of the parties hereunder.

     11. No Representation. Except as expressly set forth in the Agreement, it is hereby
acknowledged that Assignor makes no representation or warranty of any kind or nature relative to
the Property Leases, including, without limitation, any representation or warranty regarding
Assignor’s interest therein or Assignor’s right to assign or transfer the same. Without limitation
of any representations or warranties expressly set forth in the Agreement, this Assignment
constitutes a quitclaim assignment only, and is intended to assign and transfer only such rights
which Assignor may have, if any, with respect to the Property Leases.

[SIGNATURES ON FOLLOWING PAGE]

L-3

 

     IN WITNESS WHEREOF, the parties hereto have caused this Assignment to be executed by their
duly authorized officers on the date first written above.

	 	 	 	 	 	 	 
	ASSIGNOR:	 	 	 	ASSIGNEE:
	 
	 	 	 	 	 	 
	 
	,	 	 	a	 	 
	 	 	 	 	  ,
	 

	 	 	 	 	 	 
	 
	 	 	 	a	 	 
	 

	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	By:	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	 	 	 	 	Name:	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Name:
	 	 	 	 	 	 	 	Title:	 	 
	 

	 	 	 	 
	 	 	 	 	 	 	 	 
	 

	 	Its:	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 

L-4

 

EXHIBIT A TO ASSIGNMENT AND ASSUMPTION OF LEASES

LEGAL DESCRIPTION OF PROPERTY

A-1

 

EXHIBIT B TO ASSIGNMENT AND ASSUMPTION OF LEASES

SCHEDULE OF LEASES

B-1

 

EXHIBIT M

FORM OF ASSIGNMENT AND ASSUMPTION OF FANNIN GROUND LEASE

     THIS ASSIGNMENT AND ASSUMPTION OF FANNIN GROUND LEASE (this “Assignment”) is made and entered
into as of                     , 2007, by and between BREOF BNK FANNIN LP, a Delaware limited
partnership (“Assignor”), and                     , a                      (“Assignee”).

Recitals

     A. Assignor and BREOF BNK Phoenix LLC, a Delaware limited liability company, collectively as
seller, and Assignee, as buyer, entered into that certain Agreement of Purchase and Sale dated as
of                     , 2007 (the “Agreement”), pursuant to which Assignor agreed to sell to Assignee,
and Assignee agreed to acquire from Assignor, among other things, Assignor’s interest in that
certain property commonly known as                                          and legally described on Exhibit A
attached hereto (“Property”).

     B. As part of the acquisition transaction contemplated by the Agreement, Assignor has agreed
to assign to Assignee, and Assignee has agreed to assume, Assignor’s leasehold interest (together
with all rights and obligations relating thereto) under that certain ground lease described on
Schedule 1 to this Assignment (herein, the “Fannin Ground Lease”), which Fannin Ground Lease
encumbers that portion of the Property which is legally described on Exhibit B attached hereto
(together with any interest Assignor may have in those improvements thereon, the “Fannin Ground
Leased Property”).

     NOW, THEREFORE, in consideration of the foregoing and the mutual covenants contained herein,
and for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, Assignor and Assignee agree as follows:

     1. Transfer and Assignment by Assignor. Assignor hereby transfers and assigns to
Assignee all of Assignor’s right, title, and interest, as ground lessee, in and under the Fannin
Ground Lease.

     2. Assumption by Assignee. Assignee hereby accepts the foregoing assignment and
assumes and agrees to perform all of the duties, obligations, liabilities, commitments and
covenants of Assignor, as ground lessee, accruing from and after the date hereof with respect to or
arising under the Fannin Ground Lease; provided that Assignee further agrees to perform all of the
duties, obligations, liabilities, commitments and covenants under the Fannin Ground Lease relating
to the physical or environmental condition of Fannin Ground Leased Property, regardless of whether
such duties, obligations, liabilities, commitments or covenants arose or accrued (or arise or
accrue) prior to, on or after Closing (as defined in the Agreement) and regardless of whether such
conditions exist or come into existence prior to, on or after Closing (as defined in the
Agreement).

M-1

 

     3. Indemnification by Assignor. Assignor hereby agrees to indemnify, defend and hold
harmless Assignee, and its partners, officers, directors, members, shareholders, affiliates,
managers, employees and agents, from, of and against any and all claims, demands, liabilities,
losses, damages, costs and expenses (including, without limitation, reasonable attorneys’ fees)
arising out of or relating to the breach by Assignor of any of the obligations, terms or covenants
of Assignor, as ground lessee under or pursuant to the Fannin Ground Lease, which obligations,
terms or covenants accrued prior to the date hereof; provided, however, that Assignor shall have no
obligation hereunder to so indemnify, defend or hold harmless the aforementioned parties with
respect to breaches by Assignor of obligations, terms or covenants under or pursuant to the Fannin
Ground Lease that relate to the physical or environmental condition of the Fannin Ground Leased
Property, regardless of whether such obligations, terms or covenants arose or accrued (or arise or
accrue) prior to, on or after Closing (as defined in the Agreement) and regardless of whether such
conditions exist or come into existence prior to, on or after Closing (as defined in the
Agreement). The indemnification obligation contained in this Section 3 shall be subject to the
procedures, limitations on liabilities and other provisions contained in the Agreement, in each
instance relating to the Assignor’s liability.

     4. Indemnification by Assignee. Assignee hereby agrees to indemnify, defend and hold
harmless Assignor, and its partners, officers, directors, members, shareholders, affiliates,
managers, employees and agents, from, of and against any and all claims, demands, liabilities,
losses, damages, costs and expenses (including, without limitation, reasonable attorneys’ fees)
arising out of or relating to (i) the breach by Assignor or Assignee of those obligations, terms or
covenants under or pursuant to the Fannin Ground Lease which relate to the physical or
environmental condition of the Fannin Ground Leased Property, irrespective of whether same arose or
accrued (or arises or accrues) prior to, on or after the Closing (as defined in the Agreement), and
(ii) the breach by Assignee of any of the other obligations, terms or covenants of Assignor, as
ground lessee under or pursuant to the Ground Lease, which obligations, terms or covenants accrue
from and after the date hereof. The indemnification obligation contained in this Section 4 shall
be subject to all applicable procedures, limitations on liabilities and other provisions contained
in the Agreement, in each instance relating to Assignee’s liability.

     5. Further Assurances. The parties hereto covenant and agree to execute such further
instruments and take such further action as may be reasonably required by either party to fully
effectuate the terms and provisions of this Assignment and the transactions contemplated herein.

     6. Survival of Provisions. The covenants and obligations contained in this Assignment
shall survive the consummation of the closing of the transactions contemplated by the Agreement and
this Assignment shall bind and inure to the benefit of the parties hereto and their respective
successors and assigns.

     7. Attorneys’ Fees and Costs. If either party commences an action for the judicial
interpretation, reformation, enforcement or rescission hereof, the prevailing party will be
entitled to a judgment against the other party for an amount equal to reasonable actual attorneys’
fees and court and other related costs incurred.

M-2

 

     8. Governing Law. This Assignment shall be governed by and construed in accordance
with the laws of the State of                     .

     9. Counterparts. This Assignment may be executed in counterparts which, when
integrated, shall constitute one original of this Assignment.

     10. Conflict. In the event of any conflict or inconsistency between the terms hereof
and the terms of the Agreement, the terms of the Agreement shall govern and control. Without
limitation of the foregoing, all limitations on liability expressly set forth in the Agreement
shall apply to this Assignment and the liabilities of the parties hereunder.

     11. No Representation. Except as expressly set forth in the Agreement, it is hereby
acknowledged that Assignor makes no representation or warranty of any kind or nature relative to
the Fannin Ground Lease, including, without limitation, any representation or warranty regarding
Assignor’s interest therein or Assignor’s right to assign or transfer the same. Without limitation
of any representations or warranties expressly set forth in the Agreement, this Assignment
constitutes a quitclaim assignment only, and is intended to assign and transfer only such rights
which Assignor may have, if any, with respect to the Fannin Ground Lease.

[SIGNATURES ON FOLLOWING PAGE]

M-3

 

     IN WITNESS WHEREOF, the parties hereto have caused this Assignment to be executed by their
duly authorized officers on the date first written above.

	 	 	 
	ASSIGNOR:

	 	ASSIGNEE:
	 
	 	 
	BREOF BNK FANNIN LP, a Delaware limited partnership

	 	                                        ,     a
	 
	 	 
	 

	 	                                                                                

	 	 	 	 	 	 	 	 	 	 	 	 	 
	By:	 	BREOF BNK Fannin GP LLC, a

	 	 	 	By:	 	 
	 	 	
Delaware limited liability company, its sole

	 	 	 	 	 	Name:	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	
 member
	 	 	 	 	 	Title:	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	By:
	 	BREOF BNK LLC, a Delaware

limited liability company, its sole

member	 	 	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Its:	 	 	 	 
	 

	 	 	 	 	 	 	 	 

M-4

 

EXHIBIT A TO ASSIGNMENT AND ASSUMPTION OF GROUND LEASE

LEGAL DESCRIPTION OF FANNIN PROPERTY

A-1

 

EXHIBIT B TO ASSIGNMENT AND ASSUMPTION OF GROUND LEASE

LEGAL DESCRIPTION OF FANNIN GROUND LEASED PROPERTY

B-1

 

SCHEDULE 1 TO ASSIGNMENT AND ASSUMPTION OF GROUND LEASE

SCHEDULE OF GROUND LEASE

 

 

EXHIBIT N

FORM OF ASSIGNMENT AND ASSUMPTION OF PHOENIX TUNNEL LEASE

     THIS ASSIGNMENT AND ASSUMPTION OF PHOENIX TUNNEL LEASE (this “Assignment”) is made and entered
into as of                     , 2007, by and between BREOF BNK PHOENIX LLC, a Delaware limited
liability company (“Assignor”), and                     , a                      (“Assignee”).

Recitals

     A. Assignor and BREOF BNK Fannin LP, a Delaware limited partnership, collectively as seller,
and Assignee, as buyer, entered into that certain Agreement of Purchase and Sale dated as of
                    , 2007 (the “Agreement”), pursuant to which Assignor agreed to sell to Assignee, and
Assignee agreed to acquire from Assignor, among other things, Assignor’s interest in that certain
property commonly known as                                          and legally described on Exhibit A attached
hereto (“Property”).

     B. As part of the acquisition transaction contemplated by the Agreement, Assignor has agreed
to assign to Assignee, and Assignee has agreed to assume, Assignor’s leasehold interest (together
with all rights and obligations relating thereto) under that certain lease described on Schedule 1
to this Assignment (herein, the “Phoenix Tunnel Lease”), which Phoenix Tunnel Lease encumbers that
portion of the Property which is legally described on Exhibit B attached hereto (together with any
interest Assignor may have in those improvements thereon, the “Phoenix Tunnel Lease Property”).

     NOW, THEREFORE, in consideration of the foregoing and the mutual covenants contained herein,
and for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, Assignor and Assignee agree as follows:

     1. Transfer and Assignment by Assignor. Assignor hereby transfers and assigns to
Assignee all of Assignor’s right, title, and interest, as lessee, in and under the Phoenix Tunnel
Lease.

     2. Assumption by Assignee. Assignee hereby accepts the foregoing assignment and
assumes and agrees to perform all of the duties, obligations, liabilities, commitments and
covenants of Assignor, as lessee, accruing from and after the date hereof with respect to or
arising under the Phoenix Tunnel Lease; provided that Assignee further agrees to perform all of the
duties, obligations, liabilities, commitments and covenants under the Phoenix Tunnel Lease relating
to the physical or environmental condition of Phoenix Tunnel Lease Property, regardless of whether
such duties, obligations, liabilities, commitments or covenants arose or accrued (or arise or
accrue) prior to, on or after Closing (as defined in the Agreement) and regardless of whether such
conditions exist or come into existence prior to, on or after Closing (as defined in the
Agreement).

N-1

 

     3. Indemnification by Assignor. Assignor hereby agrees to indemnify, defend and hold
harmless Assignee, and its partners, officers, directors, members, shareholders, affiliates,
managers, employees and agents, from, of and against any and all claims, demands, liabilities,
losses, damages, costs and expenses (including, without limitation, reasonable attorneys’ fees)
arising out of or relating to the breach by Assignor of any of the obligations, terms or covenants
of Assignor, as lessee under or pursuant to the Phoenix Tunnel Lease, which obligations, terms or
covenants accrued prior to the date hereof; provided, however, that Assignor shall have no
obligation hereunder to so indemnify, defend or hold harmless the aforementioned parties with
respect to breaches by Assignor of obligations, terms or covenants under or pursuant to the Phoenix
Tunnel Lease that relate to the physical or environmental condition of the Phoenix Tunnel Lease
Property, regardless of whether such obligations, terms or covenants arose or accrued (or arise or
accrue) prior to, on or after Closing (as defined in the Agreement) and regardless of whether such
conditions exist or come into existence prior to, on or after Closing (as defined in the
Agreement). The indemnification obligation contained in this Section 3 shall be subject to the
procedures, limitations on liabilities and other provisions contained in the Agreement, in each
instance relating to the Assignor’s liability.

     4. Indemnification by Assignee. Assignee hereby agrees to indemnify, defend and hold
harmless Assignor, and its partners, officers, directors, members, shareholders, affiliates,
managers, employees and agents, from, of and against any and all claims, demands, liabilities,
losses, damages, costs and expenses (including, without limitation, reasonable attorneys’ fees)
arising out of or relating to (i) the breach by Assignor or Assignee of those obligations, terms or
covenants under or pursuant to the Phoenix Tunnel Lease which relate to the physical or
environmental condition of the Phoenix Tunnel Lease Property, irrespective of whether same arose or
accrued (or arises or accrues) prior to, on or after the Closing, and (ii) the breach by Assignee
of any of the other obligations, terms or covenants of Assignor, as lessee under or pursuant to the
Phoenix Tunnel Lease, which other obligations, terms or covenants accrue from and after the date
hereof. The indemnification obligation contained in this Section 4 shall be subject to all
applicable procedures, limitations on liabilities and other provisions contained in the Agreement,
in each instance relating to Assignee’s liability.

     5. Further Assurances. The parties hereto covenant and agree to execute such further
instruments and take such further action as may be reasonably required by either party to fully
effectuate the terms and provisions of this Assignment and the transactions contemplated herein.

     6. Survival of Provisions. The covenants and obligations contained in this Assignment
shall survive the consummation of the closing of the transactions contemplated by the Agreement and
this Assignment shall bind and inure to the benefit of the parties hereto and their respective
successors and assigns.

     7. Attorneys’ Fees and Costs. If either party commences an action for the judicial
interpretation, reformation, enforcement or rescission hereof, the prevailing party will be
entitled to a judgment against the other party for an amount equal to reasonable actual attorneys’
fees and court and other related costs incurred.

N-2

 

     8. Governing Law. This Assignment shall be governed by and construed in accordance
with the laws of the State of                     .

     9. Counterparts. This Assignment may be executed in counterparts which, when
integrated, shall constitute one original of this Assignment.

     10. Conflict. In the event of any conflict or inconsistency between the terms hereof
and the terms of the Agreement, the terms of the Agreement shall govern and control. Without
limitation of the foregoing, all limitations on liability expressly set forth in the Agreement
shall apply to this Assignment and the liabilities of the parties hereunder.

     11. No Representation. Except as expressly set forth in the Agreement, it is hereby
acknowledged that Assignor makes no representation or warranty of any kind or nature relative to
the Phoenix Tunnel Lease, including, without limitation, any representation or warranty regarding
Assignor’s interest therein or Assignor’s right to assign or transfer the same. Without limitation
of any representations or warranties expressly set forth in the Agreement, this Assignment
constitutes a quitclaim assignment only, and is intended to assign and transfer only such rights
which Assignor may have, if any, with respect to the Phoenix Tunnel Lease.

[SIGNATURES ON FOLLOWING PAGE]

N-3

 

     IN WITNESS WHEREOF, the parties hereto have caused this Assignment to be executed by their
duly authorized officers on the date first written above.

	 	 	 
	ASSIGNOR:

	 	ASSIGNEE:
	 
	 	 
	BREOF BNK PHOENIX LLC, a Delaware limited 

liability company

	 	                                        ,     a
	 

	 	                                                                                

	 	 	 	 	 	 	 	 	 	 	 	 	 
	By:	 	BREOF BNK LLC, a

	 	 	 	By:	 	 
	 	 	
Delaware limited liability company, its

	 	 	 	 	 	Name:	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	
sole member
	 	 	 	 	 	Title:	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Its:	 	 	 	 
	 

	 	 	 	 	 	 	 	 

N-4

 

EXHIBIT A TO ASSIGNMENT AND ASSUMPTION OF PHOENIX TUNNEL LEASE

LEGAL DESCRIPTION OF PHOENIX PROPERTY

A-1

 

EXHIBIT B TO ASSIGNMENT AND ASSUMPTION OF PHOENIX TUNNEL LEASE

LEGAL DESCRIPTION OF PHOENIX TUNNEL LEASE PROPERTY

B-1

 

SCHEDULE 1 TO ASSIGNMENT AND ASSUMPTION OF PHOENIX TUNNEL LEASE

SCHEDULE OF PHOENIX TUNNEL LEASE 

 

EXHIBIT O

RENT ENHANCEMENT AGREEMENT

     THIS
RENT ENHANCEMENT AGREEMENT (“Enhancement Agreement”) is entered into as of the ___ day
of                                         , 2007 (“Effective Date”) by and between [INSERT BREOF FANNIN OR BREOF PHOENIX,
AS APPLICABLE], a                                          (“BREOF”), and                           
     
        , a
                                                             (“Buyer”).

     A. BREOF and [INSERT OTHER OF BREOF FANNIN OR BREOF PHOENIX, AS APPLICABLE], a
                                         (“Other Seller”), collectively as seller, and Buyer, as buyer, entered into
that certain Agreement of Purchase and Sale dated                     , 2007 (“Purchase/Sale
Agreement”) pursuant to which, BREOF and Other Seller agreed to sell to Buyer, and Buyer agreed to
acquire from BREOF and Other Seller, among other things, all of BREOF’s and Other Seller’s interest
in those certain properties commonly known as (i) 1111 Fannin Street, Houston, Texas (the “Fannin
Property”), and (ii) 201 North Central Avenue, Phoenix, Arizona (the “Phoenix Property”).

     B. The full                      Property is currently leased to JPMorgan Chase Bank, National
Association (“JPMorgan”) pursuant to that certain JPMorgan Chase Net Lease Agreement of Lease dated
September 27, 2006 by and between the undersigned BREOF, as landlord, and JPMorgan, as tenant (the
“JPMorgan Net Lease”).

     C. The transaction contemplated by the Purchase/Sale Agreement closed (“Closing”) as of the
date hereof (i.e., the Effective Date) and, accordingly, Buyer has succeeded to the interest of
BREOF as landlord under the JPMorgan Net Lease.

     D. As part of the consideration paid by Buyer to BREOF and Other Seller for the “Property” (as
defined in the Purchase/Sale Agreement), including without limitation BREOF’s and Other Seller’s
interest in the Fannin Property and Phoenix Property, the undersigned, BREOF agreed to enter into
and deliver this Enhancement Agreement in favor of Buyer concurrent with the Closing.

     NOW, THEREFORE, in consideration for the purchase of BREOF’s interest in the Property and
other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged,
the parties to this Enhancement Agreement hereby agree as follows:

     1. Term. The term of this Enhancement Agreement (the “Term”) shall commence on the
Effective Date and end on                                         , 2___. [TO INSERT DATE WHICH IS THE LAST DAY OF THE
96TH FULL CALENDAR MONTH FROM AND AFTER THE EFFECTIVE DATE.]

     2. Monthly Rent Enhancement Payments. BREOF hereby agrees to pay to Buyer, on the
first day of each full calendar month during the Term, the following monthly amounts

O-1

 

(each, a “Monthly Rent Enhancement Amount”) during the following periods, without demand,
offset or deduction:

	 	 	 
	Period	 	Monthly Rent Enhancement Amount1
	1.      Calendar months 1 through
12 (inclusive)

	 	$                                        
	 
	 	 
	2.      Calendar months 13 through
24 (inclusive)

	 	$                                        
	 
	 	 
	3.      Calendar months 25 through
36 (inclusive)

	 	$                                        
	 
	 	 
	4.      Calendar months 37 through
48 (inclusive)

	 	$                                        
	 
	 	 
	5.      Calendar months 49 through
60 (inclusive)

	 	$                                        
	 
	 	 
	6.      Calendar months 61 through
72 (inclusive)

	 	$                                        
	 
	 	 
	7.      Calendar months 73 through
84 (inclusive)

	 	$                                        
	 
	 	 
	8.      Calendar months 85 through
96 (inclusive)

	 	$                                        

All Monthly Rent Enhancement Amount payments shall be delivered to                                                             , or
at
such other place as may be designated by Buyer from time to time pursuant to the provisions of
Section 7 below.

     3. Survival of Payment Obligation. BREOF and Buyer hereby acknowledge and agree that
BREOF’s obligation to make the Monthly Rent Enhancement Amount payments during the Term shall
continue for the full Term, irrespective of the existence of the JPMorgan Net Lease and,
accordingly, said obligation shall survive the termination of the JPMorgan Net Lease for any
reason.

     4. No Obligations under Lease. Notwithstanding anything to the contrary contained
herein or in any other agreement between the parties, BREOF and Buyer hereby acknowledge and agree
that BREOF shall have no rights, obligations or liabilities, and this

 

			
	1	 	Note: Seller and Buyer hereby agree that the aggregate
Monthly Rent Enhancement Amounts for both Rent Enhancement Agreements to be
entered into at Closing shall be as follows for each period:

Period 1 above = $250,000.00

Period 2 above = $233,000.00

Period 3 above = $212,500.00

Period 4 above = $195,833.33

Period 5 above = $175,000.00

Period 6 above = $125,000.00

Period 7 above = $83,333.33

Period 8 above = $50,708.33

Prior to Closing, Seller and Buyer shall, with respect to each such
period, agree upon the allocation of said aggregate Monthly Rent Enhancement
Amounts between the two Rent Enhancement Agreements.

O-2

 

Enhancement Agreement shall in no event be deemed to imply that BREOF has any rights,
obligations or liabilities, under the JPMorgan Net Lease.

     5. Not Subject to Purchase/Sale Agreement. BREOF and Buyer hereby acknowledge and
agree that their respective rights and obligations under this Enhancement Agreement shall in no
event be subject to any remedy provisions or limitations on liability that may be set forth in the
Purchase/Sale Agreement.

     6. Remedies. If BREOF is in default under this Enhancement Agreement, then Buyer
shall deliver to BREOF written notice of such default, which notice shall describe the nature of
the default, and BREOF shall then have a period of five (5) business days to cure same. If BREOF
does not cure such default within five (5) business days after receipt of said written notice of
default, then, as Buyer’s sole and exclusive remedy, Buyer shall be entitled to maintain and bring
a suit to specifically enforce the provisions of this Enhancement Agreement and, in connection
therewith, Buyer shall be entitled to receive interest on any past due amounts hereunder from the
date due until paid at an annual rate equal to the lesser of (i) the maximum rate allowed by law
with respect thereto, or (ii) twelve percent (12%).

     7. Notices. Any notice, request, demand, instruction or other document to be given or
served hereunder shall be in writing and shall be delivered personally, or transmitted by facsimile
(provided that the original thereof together with the facsimile confirmation sheet shall thereafter
be promptly sent by a nationally recognized overnight express courier), or sent by a nationally
recognized overnight express courier, and shall be addressed to the parties at their respective
addresses set forth below, and the same shall be effective upon receipt if delivered personally, or
one (1) business day after deposit with a nationally recognized overnight express courier, or
immediately upon being sent by facsimile transmission in accordance with the procedures described
above. A party may change its address for receipt of notices by service of a notice of such change
in accordance herewith.

	 	 	 
	If to BREOF:

	 	c/o Brookfield Real Estate Opportunity Fund
	 

	 	Three World Financial Center
	 

	 	200 Vesey Street, 11th Floor
	 

	 	New York, New York 10281-1021
	 

	 	Attention: Mr. Steven H. Ganeless
	 

	 	Facsimile: (212) 417-7292
	 
	 	 
	with a copy to:

	 	DLA Piper US LLP
	 

	 	203 North LaSalle Street
	 

	 	Suite 1900
	 

	 	Chicago, Illinois 60601
	 

	 	Attention: Michael L. Ben-Isvy, Esq.
	 

	 	Facsimile: (312) 251-5704

O-3

 

	 	 	 	 	 	 	 
	If to Buyer:
	 	 	 	 	 	 
	 	 	 	 	  
	 
	 	 	 	 	 	 
	 	 	 	 	  
	 
	 	 	 	 	 	 
	 	 	 	 	  
	 
	 	 	 	 	 	 
	 	 	 	 	  
	 

	 	Attn:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Facsimile:	 	 	 	 
	 

	 	 	 	 

	 	  
	 
	 	 	 	 	 	 
	with a copy to:
	 	 	 	 	 	 
	 	 	 	 	  
	 
	 	 	 	 	 	 
	 	 	 	 	  
	 
	 	 	 	 	 	 
	 	 	 	 	  
	 
	 	 	 	 	 	 
	 	 	 	 	  
	 

	 	Attn:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Facsimile:	 	 	 	 
	 

	 	 	 	 

	 	  

8. Miscellaneous.

     a. Entire Agreement, Amendments and Waivers. This Enhancement Agreement
contains the entire agreement and understanding of the parties with respect to the subject
matter hereof, and the same may not be amended, modified or discharged nor may any of its
terms be waived, except by an instrument in writing signed by the party to be bound thereby.
This Enhancement Agreement supersedes any and all prior written or oral agreements and
understandings between the parties relating to the subject matter of this Enhancement
Agreement.

     b. Further Assurances. The parties each agree to do, execute, acknowledge and
deliver all such further acts, instruments and assurances and to take all such further
action as shall be reasonably necessary or desirable to fully carry out this Enhancement
Agreement.

     c. Successors and Assigns. All agreements and obligations of the parties
hereunder shall inure to the benefit of and be binding upon the respective successors and
assigns of the parties.

     d. No Third Party Benefits. This Enhancement Agreement is for the sole and
exclusive benefit of the parties hereto and their respective successors and assigns, and no
third party is intended to or shall have any rights hereunder.

     e. Interpretation. The headings and captions herein are inserted for
convenient reference only and the same shall not limit or construe the paragraphs or
Sections to which they apply or otherwise affect the interpretation hereof. This
Enhancement Agreement and any document or instrument executed pursuant hereto may be
executed in any number of counterparts, each of which shall be deemed an original, but all
of which together shall constitute one and the same instrument. Whenever under the terms of
this Enhancement Agreement the time for performance of a covenant or condition falls upon a
Saturday, Sunday or holiday (in the United States or in Toronto, Canada), such time for
performance shall be extended to the next business day. Otherwise all references herein to
“days” shall mean calendar days. Time is of the

O-4

 

essence of this Enhancement Agreement. All references to funds or sums of money shall
be in US dollars.

     f. Governing Law. This Enhancement Agreement shall be governed by and
construed in accordance with the laws of the State of ___.

     g. Attorneys’ Fees. In any action or proceeding involving this Enhancement
Agreement or the contents hereof, the prevailing party shall be entitled to recover from the
other party the prevailing party’s reasonable costs and expenses in such action or
proceeding, including reasonable attorneys’ fees.

[SIGNATURES ON FOLLOWING PAGES]

O-5

 

     IN WITNESS WHEREOF, the parties hereto have entered into this Enhancement Agreement as the
date and year first above written.

BREOF:

[INSERT SIGNATURE BLOCK]

BUYER:

[INSERT BUYER SIGNATURE BLOCK]

O-6

 

EXHIBIT P

[BREOF BNK LLC]

February ___, 2007

JPMorgan Chase Bank, National Association

270 Park Avenue

New York, New York 10017

Attention:                                         

Dear                                         :

     Reference is hereby made to that certain Agreement of Sale and Purchase dated as of September
12, 2006 by and between JPMorgan Chase Bank, National Association, a national banking association
(“Seller”), as seller, and BREOF Investors, LLC, a Delaware limited liability company (“Original
Purchaser”), as purchaser, as amended by that certain Letter Agreement dated as of September 27,
2006 between Seller and Original Purchaser, and as assigned by that certain Assignment of Purchase
Agreement dated September 27, 2006 by and between Original Purchaser, as assignor, and BREOF BNK
LLC, a Delaware limited liability company (“Purchaser”), as assignee (as so amended and assigned,
the “Sale/Purchase Agreement”), pursuant to which, among other things, Seller (i) sold and conveyed
to Purchaser’s affiliate, BREOF BNK Phoenix LLC, a Delaware limited liability company (“BREOF
Phoenix”), that certain Fee Property (as defined in the Sale/Purchase Agreement) commonly known as
201 North Central Avenue, Phoenix, Arizona and legally described on Exhibit A-1 attached hereto
(the “Phoenix Property”), and (ii) sold and conveyed to Purchaser’s affiliate, BREOF BNK Fannin LP,
a Delaware limited partnership (“BREOF Fannin”), that certain Fee Property commonly known as a
portion of 1111 Fannin Street, Houston, Texas and legally described on Exhibit A-2 attached hereto
(the “Fannin Fee Portion”) and sold and assigned to BREOF Fannin its ground leasehold interest in
that certain Ground Lease Property (as defined in the Sale/Purchase Agreement) commonly known as a
portion of 1111 Fannin Street, Houston, Texas and legally described on Exhibit A-3 attached hereto
(the “Fannin Ground Leased Portion”; the Fannin Fee Portion and the Fannin Ground Leased Portion
are collectively defined herein as the “Fannin Property”).

     Seller and Purchaser hereby acknowledge that concurrent with the closing (“Closing”) of the
transaction contemplated by the Sale/Purchase Agreement, which was consummated on September 27,
2006, the following transactions occurred simultaneously: (i) the Phoenix Property was sold and
conveyed to Purchaser’s affiliate, BREOF Phoenix, (ii) the Fannin Property was sold, conveyed and
assigned to Purchaser’s affiliate, BREOF Fannin, (iii) BREOF Phoenix master leased the full Phoenix
Property back to Seller pursuant to that certain JPMorgan Chase Net Lease Agreement of Lease dated
as of September 27, 2006 (the “Phoenix Master Lease”) between BREOF Phoenix, as landlord, and
Seller, as tenant, and (iv) BREOF Fannin master leased the Fannin Fee Portion of, and master
subleased the Fannin Ground Leased Portion of, the Fannin Property back to Seller pursuant to that
certain JPMorgan Chase Net Lease Agreement of Lease dated as of September 27, 2006 (the “Fannin
Master Lease”) between BREOF Fannin, as landlord, and Seller, as tenant. Capitalized terms used but
not defined herein

P-1

 

February ___, 2007

Page 2

shall have the meanings assigned such terms in the Phoenix Master Lease or Fannin Master
Lease, as applicable.

     Seller and Purchaser hereby further acknowledge that, (i) it was Seller’s and Purchaser’s
intention under the Sale/Purchase Agreement that, since BREOF Phoenix and BREOF Fannin were leasing
the full Phoenix Property and Fannin Property, respectively, back to Seller at Closing, any
then-existing leases, licenses or other occupancy agreements at the Phoenix Property and Fannin
Property (including, without limitation, those described on Exhibit B-1 attached hereto
(collectively, the “Phoenix Subleases”) and those described on Exhibit B-2 attached hereto
(collectively, the “Fannin Subleases”)) would be thereafter deemed to be subleases under the
Phoenix Master Lease or the Fannin Master Lease, respectively, (ii) it was Seller’s and Purchaser’s
intention that the Phoenix Subleases and the Fannin Subleases not be assigned to Purchaser or any
of its affiliates at Closing and, instead, that Seller would remain primarily and solely
responsible, as landlord, under each Phoenix Sublease and Fannin Sublease, for all obligations and
liabilities of the landlord thereunder, whether occurring before, as of or after Closing, and (iii)
at Closing Seller and Purchaser incorrectly assigned and assumed the Phoenix Subleases and the
Fannin Subleases pursuant to that certain Assignment of Leases dated as of September 27, 2006
between Seller, as assignor, and BREOF Phoenix, as assignee (the “Phoenix Assignment”; a copy of
the Phoenix Assignment is attached hereto as Exhibit C-1), and that certain Assignment of Leases
dated as of September 27, 2006, between Seller, as assignor, and BREOF Fannin, as assignee (the
“Fannin Assignment”; a copy of the Fannin Assignment is attached hereto as Exhibit C-2).

     In connection with the foregoing, for good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged by the parties, Seller, Purchaser, BREOF Phoenix and
BREOF Fannin hereby acknowledge and agree that (i) each of the Phoenix Assignment and the Fannin
Assignment shall be deemed terminated and void in all respects as if the same was never entered
into by the parties thereto; (ii) Seller shall use good faith diligent efforts to cause each
subtenant (excluding licensees) under the Phoenix Subleases and the Fannin Subleases to execute and
deliver a Subtenant Non-disturbance Agreement (herein, each a “SNDA”) in the form attached hereto
as Exhibit D, and, once executed by a subtenant in the form attached hereto as Exhibit D, (x) BREOF
Phoenix or BREOF Fannin, as applicable, shall execute each such SNDA which is executed and
delivered by said subtenants under such subleases, and (y) BREOF Phoenix and BREOF Fannin, as
applicable, shall use good faith, diligent efforts to obtain a Subtenant Non-disturbance Agreement
from each Fee Mortgagee, in accordance with Section 17(c) of the Phoenix Master Lease or Fannin
Master Lease, as applicable; (iii) Seller shall be responsible to fulfill all of the obligations
of, and shall have all of the rights and entitlements accruing to, the landlord, licensor, and
owner, as the case may be, under the Phoenix Subleases and the Fannin Subleases, whether arising or
accruing before, as of or after Closing, subject to BREOF Phoenix’s and BREOF Fannin’s obligations
and rights under any applicable SNDA fully executed by the parties thereto; (iv) without limiting
the Seller’s entitlements referred to in clause (iii) above and without limiting BREOF Phoenix’s
and BREOF Fannin’s rights under any fully executed SNDA, such Seller entitlements shall include,
without limitation, the right to retain and apply any security deposits that relate to the Phoenix
Subleases and Fannin Subleases, the right to collect all rentals and other amounts that become due
and payable from time to time by the subtenants, licensees and occupants, as the case may be, under
the Phoenix Subleases and

P-2

 

February ___, 2007

Page 3

the Fannin Subleases, and the right to commence and prosecute all dispossession and other
proceedings against the subtenants under the Phoenix Subleases and the Fannin Subleases; and (v)
Seller agrees that the indemnities set forth in Section 11 of the Phoenix Master Lease or Fannin
Master Lease, as applicable, shall apply with respect to any Losses arising out of the Phoenix
Subleases and/or Fannin Subleases, whether arising or accruing before, as of or after Closing (and,
without limiting the foregoing provisions of this subsection (v), Seller hereby acknowledges and
agrees that (x) the term “subtenant” set forth in Section 11(a)(a) of each of the Phoenix Master
Lease and the Fannin Master Lease shall include, without limitation, all tenants, licensees and
other occupants of the Phoenix Property or the Fannin Property, respectively, under the Phoenix
Subleases or the Fannin Subleases, and (y) for purposes of Section 11(b) of each of the Phoenix
Master Lease and the Fannin Master Lease, the term “negligence” shall in no event be deemed to
include the above-described incorrect assumption at Closing of the Phoenix Subleases and the Fannin
Subleases by BREOF Phoenix and BREOF Fannin respectively).

     Contemporaneously herewith, Purchaser, BREOF Phoenix and BREOF Fannin are delivering to Seller
(x) the amount of $                    , representing the aggregate amount of rents and other sums heretofore
collected by Purchaser, BREOF Phoenix and BREOF Fannin from the subtenants under the Phoenix
Subleases and the Fannin Sublesses and not previously remitted to Seller, and (y) the amount of
$                    , representing the aggregate amount of the security deposits for such subtenants which
were credited to Purchaser, BREOF Phoenix or BREOF Fannin at Closing and not previously remitted to
Seller. To the actual knowledge of Purchaser, BREOF Phoenix and BREOF Fannin, Exhibit E lists, on
a subtenant by subtenant basis, the amount of (i) such rents and other charges heretofore collected
by Purchaser, BREOF Phoenix or BREOF Fannin from such subtenants and not previously remitted to
Seller and (ii) each security deposit for such subtenants which was credited to Purchaser, BREOF
Phoenix or BREOF Fannin at Closing and not previously remitted to Seller. Each of Purchaser, BREOF
Phoenix and BREOF Fannin represents that, to the actual knowledge of Purchaser, BREOF Phoenix and
BREOF Fannin, (x) no portion of any security deposit of any such subtenant has been applied by any
of Purchaser, BREOF Phoenix or BREOF Fannin. If Purchaser, BREOF Phoenix or BREOF Fannin shall
receive sums from any such subtenant under the Phoenix Subleases or the Fannin Subleases after the
date hereof, such party shall immediately remit such sum to Seller, except to the extent BREOF
Phoenix or BREOF Fannin is entitled to same pursuant to the terms of any SNDA.

     The parties agree to execute such other instruments and to do such further acts as may be
reasonably requested to carry out the provisions of this letter agreement, at the expense of the
requesting party, including, without limitation delivery of an (x) assignment by BREOF Phoenix and
BREOF Fannin, as applicable, to Seller of the entitlements afforded Seller pursuant to clauses
(iii) and (iv) of the fourth paragraph of this letter agreement above if and to the extent
necessary or desirable for Seller to obtain or enforce its rights to such entitlements, and (y)
assumption by Seller of all of the obligations under the Phoenix Subleases and the Fannin
Subleases, as described in clause (iii) of the fourth paragraph of this letter agreement above if
and to the extent deemed necessary or desirable by Purchaser, BREOF Phoenix or BREOF Fannin, in its
reasonable judgement.

P-3

 

February ___, 2007

Page 4

     Each of Seller, Purchaser, BREOF Phoenix and BREOF Fannin hereby acknowledges and agrees that
the terms and provisions of this letter agreement shall be deemed to supplement the terms and
provisions of each of the Phoenix Master Lease and the Fannin Master Lease, and shall run to the
benefit of, and be binding upon, both the master landlords from time to time under each of the
Phoenix Master Lease and the Fannin Master Lease and the tenants from time to time under each of
the Phoenix Master Lease and the Fannin Master Lease.

     Except as modified hereby, nothing herein shall limit or affect in any manner the rights,
obligations or other terms of the Phoenix Master Lease or the Fannin Master Lease, or the express
terms of the Sale/Purchase Agreement which survive Closing thereunder.

P-4

 

February ___, 2007

Page 5

     Please execute this letter agreement below to evidence Seller’s acknowledgement and agreement
concerning the terms and provisions of this letter agreement.

	 	 	 	 	 	 	 	 	 
	 	 	Very truly yours,	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	BREOF BNK LLC, a Delaware limited liability company	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	  
	`

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Its:	 	 	 	 
	 

	 	 	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	BREOF BNK PHOENIX LLC, a Delaware limited liability

company	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	BREOF BNK LLC, a Delaware limited

liability company, its sole member	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	  
	 

	 	 	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Its:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	BREOF BNK FANNIN LP, a Delaware limited partnership
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	BREOF BNK Fannin GP LLC, a

Delaware limited liability company, its

general partner
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	BREOF BNK LLC, a Delaware

limited liability company, its sole

member	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	  
	 

	 	 	 	 	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Its:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 

ACKNOWLEDGED AND AGREED

this ___ day of February, 2007

JPMORGAN CHASE BANK, NATIONAL

ASSOCIATION, a national banking association

	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 	 	 	 	  
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Its:	 	 	 	 
	 

	 	 	 	 	 	 

P-5

 

EXHIBIT A-1 TO LETTER AGREEMENT

LEGAL DESCRIPTION OF PHOENIX PROPERTY

PARCEL NO. 2:

LOTS 1 TO 12, INCLUSIVE, BLOCK 7, ORIGINAL TOWNSITE OF PHOENIX, ACCORDING TO BOOK 2 OF MAPS, PAGE
51, RECORDS OF MARICOPA COUNTY, ARIZONA;

TOGETHER WITH THE VACATED EAST-WEST ALLEY LOCATED IN SAID BLOCK 7;

EXCEPT THE FOLLOWING DESCRIBED PARCELS:

A. THE NORTH 7.75 FEET OF LOTS 1, 3, 5, 7, 9 AND 11.

B. BEGINNING AT A POINT 12.5 FEET WEST OF THE NORTHEAST CORNER OF LOT 5, BLOCK 7;

THENCE SOUTH 68 FEET 1 INCH;

THENCE WEST 75 FEET;

THENCE NORTH 68 FEET 8 INCHES;

THENCE EAST 75 FEET TO THE PLACE OF BEGINNING;

EXCEPT THE NORTH 7.75 FEET.

C. THE SOUTH 50 FEET OF LOTS 9 AND 11, BLOCK 7; AND

THAT PORTION OF LOTS 5 AND 7, BLOCK 7, DESCRIBED AS FOLLOWS:

BEGINNING AT A POINT ON THE NORTH LINE OF THE VACATED EAST-WEST ALLEY, 112.5 FEET EAST OF THE
SOUTHWEST CORNER OF LOT 11, SAID BLOCK 7;

THENCE NORTH 68 FEET;

THENCE EAST 75 FEET;

THENCE SOUTH 68 FEET;

THENCE WEST 75 FEET TO THE POINT OF BEGINNING; AND

EXCEPT TITLE TO ANY MINE OF GOLD, SILVER, CINNABAR OR COPPER OR TO ANY VALID CLAIM OR POSSESSION
HELD UNDER THE EXISTING LAWS OF CONGRESS AS RESERVED IN THE PATENT TO SAID LAND.

A-1-1

 

PARCEL NO. 3:

ALL THAT PORTION OF LOTS 5 AND 7, BLOCK 7, ORIGINAL TOWNSITE OF PHOENIX, ACCORDING TO BOOK 2 OF
MAPS, PAGE 51, RECORDS OF MARICOPA COUNTY, ARIZONA, DESCRIBED AS FOLLOWS:

BEGINNING AT A POINT 12.5 FEET WEST OF THE NORTHEAST CORNER OF LOT 5, BLOCK 7;

THENCE SOUTH 68 FEET, 1 INCH;;

THENCE WEST 75 FEET;

THENCE NORTH 68 FEET, 8 INCHES;

THENCE EAST 75 FEET TO THE POINT OF BEGINNING;

EXCEPT THE NORTH 7.75 FEET; AND ALSO

EXCEPT TITLE TO ANY MINE OF GOLD, SILVER, CINNABAR OR COPPER OR TO ANY VALID CLAIM OR POSSESSION
HELD UNDER THE EXISTING LAWS OF CONGRESS AS RESERVED IN THE PATENT TO SAID LAND.

PARCEL NO. 4:

THAT PORTION OF LOTS 5, 7, 9 AND 11, BLOCK 7, ORIGINAL TOWNSITE OF PHOENIX, ACCORDING TO BOOK 2 OF
MAPS, PAGE 51, RECORDS OF MARICOPA COUNTY, ARIZONA, DESCRIBED AS FOLLOWS:

THE SOUTH 50 FEET OF LOTS 9 AND 11, BLOCK 7; AND

THAT PORTION OF LOTS 5 AND 7, BLOCK 7, DESCRIBED AS FOLLOWS:

BEGINNING AT A POINT ON THE NORTH LINE OF THE VACATED EAST-WEST ALLEY, 112.5 FEET EAST OF THE
SOUTHWEST CORNER OF LOT 11, BLOCK 7;

THENCE NORTH 68 FEET;

THENCE EAST 75 FEET;

THENCE SOUTH 68 FEET;

THENCE WEST 75 FEET TO THE POINT OF BEGINNING;

EXCEPT TITLE TO ANY MINE OF GOLD, SILVER, CINNABAR OR COPPER TO ANY VALID CLAIM OR POSSESSION HELD
UNDER THE EXISTING LAWS OF CONGRESS AS RESERVED IN THE PATENT TO SAID LAND.

A-1-2

 

EXHIBIT A-2 TO LETTER AGREEMENT

LEGAL DESCRIPTION OF FANNIN FEE PORTION

All that certain 33,810 square foot parcel of land comprising all of Lots 1 through 5 and part of
Lots 11 & 12, Block 254, S.S.B.B., according to the generally recognized plat and also including
that certain 2.4’ X 132.9’ strip out of original San Jacinto Street adjacent to Block 254 created
by the building line described in the City of Houston Motion No. 8076, dated July 6, 1925 and filed
for record on May 31, 1951 at Volume 2289, Page 381 of the Harris County Deed Records, same being
all those certain lands described as Tract 1 (fee) & Tract 2 (Lease) in a Deed dated July 30, 1989
from Collecting Bank, N.A. to DPC Properties, Inc. filed in the Official Public Records of Real
Property of Harris County, Texas at Clerk’s File No. M240239, Film Code No. 152-62-0024, out of the
J.S. Holman Survey, Abstract No. 323, Harris County, Texas and being more particularly described by
metes and bounds as follows:

Commencing at the City of Houston Engineering Department Reference Rod No. 830 located in the City
of Houston Engineering Department Reference Line for San Jacinto Street (width varies) at its
intersection with the easterly projection of the southerly line of said Block 254; Thence N 55
degrees 00’00”W – 37.60’ to a found nail set in lead plug marking the POINT OF BEGINNING of the
herein described parcel;

THENCE N 55 degrees 00’00” W, passing the theoretical southeast corner of said Block 254 at 2.4’
and continuing with the northerly right-of-way line of Dallas Avenue (80’ wide) for a total
distance of 254.40’ to a found nail set in lead plug for corner,

THENCE N 35 degrees 00’00”E – 132.90’ with the easterly right-of-way line of Fannin Street (80’
wide) to a found nail for corner,

THENCE S 55 degrees 00’00”E passing the theoretical easterly line of said Block 254 at 252.0’ and
continuing for a total distance of 254.40’ to a point for corner,

THENCE S 35 degrees 00’00”W – 132.90’ with the easterly line of the aforementioned 2.4’ X 132.9’
strip to the POINT OF BEGINNING and containing 33,810 square feet (0.7762 acre) of land, more or
less.

SAVE & EXCEPT:

All that certain 11,572 square foot parcel of land comprised of a part of Lots 1 through 3 and part
of Lots 11 & 12, Block 254, S.S.B.B., according to the generally recognized plat and also including
a pan of that certain 2.4’ X 132.9’ strip out of original San Jacinto Street adjacent to Block 254
created by the building line described in the City of Houston Motion No. 8076, dated 7-6-1925 and
filed for record on 5-31-1951 at Volume 2289, Page 381 of the Harris County Deed Records, same
being all that certain land described as Tract 2 (lease) in a deed dated 7-30-1989 from Collecting
Bank, NA to DPC Properties, Inc. filed in the Official Public Records of Real Property of Harris
County, Texas at Clerk’s File No. M-240239, Film Code No. 152-62-0024, out of the J.S. Holman
Survey, A-323, Harris County, Texas and being more particularly described by metes and bounds as
follows:

A-2-1

 

Commencing at the City of Houston Engineering Department Reference Rod No. 830 located in the City
of Houston Engineering Department Reference Line for San Jacinto Street (width varies) at its
intersection with the easterly projection of the southerly line of said Block 254; Thence N 55
degrees 00’00”W – 136.80’ with said easterly projection of Block 254 and the northerly right-of-way
line of Dallas Avenue (80’ Wide) to the POINT OF BEGINNING of the herein described parcel,

THENCE N 55 degrees 00’00”W – 50.30’ continuing with said northerly right-of-way line of Dallas
Avenue to a point for corner,

THENCE N 35 degrees 48’00”E – 132.63’ with the easterly line of a 14,064 square foot tract
described as Tract 1 in aforementioned deed from Collecting Bank, N.A. to DPC Properties, Inc. to a
point for corner,

THENCE S 54 degrees 20’40”E – 49.65’ with a southerly line of a 206 square foot tract described as
Tract 1 in said deed from Collecting Bank, N.A. to DPC Properties, Inc. to a point for corner,

THENCE S 35 degrees 31’00”W – 0.95’ with a westerly line of said 206 square foot tract described as
Tract 1 in said deed from Collecting Bank, N.A. to DPC Properties, Inc. to a point for corner;

THENCE S 54 degrees 58’36”E – 98.00’ with a southerly line of said 206 square foot tract described
as Tract 1 in the deed from Collecting Bank, N.A. to DPC Properties, Inc. to a point for corner,

THENCE S 35 degrees 00’00”W – 50.46’ with the easterly line of the aforementioned 2.4’ X 132.9’
strip to a point for corner,

THENCE N 55 degrees 00’00”W – 98.47’ with a northerly line of a 7,966 square foot tract described
as Tract 1 in said deed from Collecting Bank, N.A. to DPC Properties, Inc. to a point for corner,

THENCE S 35 degrees 31’00”W – 80.60’ with a westerly line of said 7,966 square foot tract described
as Tract I in the deed from Collecting Bank, N.A. to DPC Properties, Inc. to the POINT OF BEGINNING
and containing 11,752 square feet (0.2657 acre) of land, more or less.

A-2-2

 

EXHIBIT A-3 TO LETTER AGREEMENT

LEGAL DESCRIPTION OF FANNIN GROUND LEASED PORTION

All that certain 11,572 square foot parcel of land comprised of a part of Lots 1 through 3 and part
of Lots 11 & 12, Block 254, S.S.B.B., according to the generally recognized plat and also including
a pan of that certain 2.4’ X 132.9’ strip out of original San Jacinto Street adjacent to Block 254
created by the building line described in the City of Houston Motion No. 8076, dated 7-6-1925 and
filed for record on 5-31-1951 at Volume 2289, Page 381 of the Harris County Deed Records, same
being all that certain land described as Tract 2 (lease) in a deed dated 7-30-1989 from Collecting
Bank, NA to DPC Properties, Inc. filed in the Official Public Records of Real Property of Harris
County, Texas at Clerk’s File No. M-240239, Film Code No. 152-62-0024, out of the J.S. Holman
Survey, A-323, Harris County, Texas and being more particularly described by metes and bounds as
follows:

Commencing at the City of Houston Engineering Department Reference Rod No. 830 located in the City
of Houston Engineering Department Reference Line for San Jacinto Street (width varies) at its
intersection with the easterly projection of the southerly line of said Block 254; Thence N 55
degrees 00’00”W – 136.80’ with said easterly projection of Block 254 and the northerly right-of-way
line of Dallas Avenue (80’ Wide) to the POINT OF BEGINNING of the herein described parcel;

THENCE N 55 degrees 00’00”W – 50.30’ continuing with said northerly right-of-way line of Dallas
Avenue to a point for corner,

THENCE N 35 degrees 48’00”E – 132.63’ with the easterly line of a 14,064 square foot tract
described as Tract 1 in aforementioned deed from Collecting Bank, N.A. to DPC Properties, Inc. to a
point for corner,

THENCE S 54 degrees 20’40”E – 49.65’ with a southerly line of a 206 square foot tract described as
Tract 1 in said deed from Collecting Bank, N.A. to DPC Properties, Inc. to a point for corner;

THENCE S 35 degrees 31’00”W – 0.95’ with a westerly line of said 206 square foot tract described as
Tract 1 in said deed from Collecting Bank, N.A. to DPC Properties, Inc. to a point for corner;

THENCE S 54 degrees 58’36”E – 98.00’ with a southerly line of said 206 square foot tract described
as Tract 1 in the deed from Collecting Bank, N.A. to DPC Properties, Inc. to a point for corner,

THENCE S 35 degrees 00’00”W – 50.46’ with the easterly line of the aforementioned 2.4’ X 132.9’
strip to a point for corner,

THENCE N 55 degrees 00’00”W – 98.47’ with a northerly line of a 7,966 square foot tract described
as Tract 1 in said deed from Collecting Bank, N.A. to DPC Properties, Inc. to a point for corner,

A-3-1

 

THENCE S 35 degrees 31’00”W – 80.60’ with a westerly line of said 7,966 square foot tract described
as Tract I in the deed from Collecting Bank, N.A. to DPC Properties, Inc. to the POINT OF BEGINNING
and containing 11,752 square feet (0.2657 acre) of land, more or less.

A-3-2

 

EXHIBIT B-1 TO LETTER AGREEMENT

PHOENIX SUBLEASES

	 	 	 
	Tenant	 	Lease Documents
	James D. Guest, D.D.S.

	 	Lease dated May 11, 1998

Amendment to Lease dated December 27, 2001

Second Amendment to Lease dated June ___, 2006
	 
	 	 
	Arch Wireless Operating
Company, Inc.

	 	Antenna Site License Agreement dated September 29,
2004
	 
	 	 
	Judy K. Landes (as successor
by assignment to Mary Ann
Boring) dba Petals and
Kettles

	 	Lease Agreement dated June 18, 2002

Assignment of Lease dated September 8, 2003
	 
	 	 
	Phoenix Chamber of Commerce

	 	Bank One Center Office Lease dated August 31, 1993

First Amendment to Lease dated August 31, 2002

Second Amendment to Lease dated July 16, 2004
	 
	 	 
	NW Communications of Phoenix,
Inc., on behalf of its
station KSAZ

	 	Antenna Site License Agreement dated April 1, 2002

First Amendment to Antenna Site License Agreement
dated June 18, 2002
	 
	 	 
	Tina Eaves

	 	License Agreement dated March 23, 2005
	 
	 	 
	Motient Communications, Inc.
(formerly Ardis Company)

	 	Antenna Site License Agreement dated May 30, 1996

First Amendment to Antenna Site License Agreement
dated March 18, 1998

Second Amendment to Antenna Site License Agreement
dated November 5, 2002

Third Amendment to Antenna Site License Agreement
dated November 1, 2003
	 
	 	 
	NBC Telemundo Phoenix, Inc.

	 	License Agreement dated March 1, 2004
	 
	 	 
	May, Potenza & Baran, P.C.

 successor in interest to May,
Potenza, Judson & Baran, P.C.

	 	Office Lease dated March 7, 1996

First Amendment to Office Lease dated February 6,
2001

Second Amendment to Office Lease dated September
12, 2002

Storage Lease dated October 22, 2002

Third Amendment to Office Lease dated November 14,
2003
	 

	 	Fourth Amendment to Office Lease dated January 13,
2004
	 

	 	Fifth Amendment to Office Building Lease dated May
___, 2006
	 
	 	 
	Ridenour, Hienton, Harper &
Kelhoffer, P.L.L.C.

	 	Lease Agreement dated June 3, 2002

First Amendment to Lease Agreement dated December
24, 2002
	 
	 	 
	Scripps Howard Broadcasting 

Company

	 	Antenna Site License Agreement dated December 20,
2005
	 
	 	 
	Metrocall, Inc.

	 	Antenna Site License Agreement, dated February 18,
1997
	 
	 	 

B-1-1

 

	 	 	 
	Tenant	 	Lease Documents
	Federal Express Corporation

	 	Antenna Site License Agreement, dated December 19,
1995
	 
	 	 
	Bell South Wireless Data, L.P.

	 	Antenna Site License Agreement, dated July 10, 2000
	 
	 	 
	Webline Wireless, Inc. aka
USA Mobility

	 	Antenna Site License Agreement
dated January 5, 1996
Amendment to Antenna Site License Agreement dated
September 15, 1997

Second Amendment to Antenna Site License Agreement
dated August 1, 1998

Third Amendment to Antenna Site License Agreement
dated December 30, 2002
	 
	 	 
	The Harbor Club Seattle (aka 

The Arizona Club)

	 	Lease dated July 27, 2006 (which incorporates by
reference the following: Dining Club Lease dated
December 16, 1999

First Amendment to Lease Agreement dated September
17, 2001

Second Amendment to Lease Agreement dated February
7, 2002

Third Amendment to Lease Agreement dated May 13,
2003
	 

	 	Lease Termination Letter, dated ___,
terminating the lease effective as of May 31, 2005)
	 
	 	 
	Overall Wireless
Communications Corp. (NRTC)

	 	Antenna Site License Agreement dated February 18,
1997
	 
	 	 
	Reliance Build, Inc,.

	 	Lease dated March 31, 1994

First Amendment to Lease dated February 16, 1998

Second Amendment to Lease dated February 21, 2002

Third Amendment to Lease dated February 21, 2003

Fourth Amendment to Lease dated December 12, 2003
	 
	 	 

B-1-2

 

EXHIBIT B-2 TO LETTER AGREEMENT

FANNIN SUBLEASES

	 	 	 
	Tenant	 	Lease Documents
	Khalil Samam, d/b/a
Out to Lunch Café
(successor-in-interest
by assignment from
Man Ki Moon)

	 	Lease Agreement dated February 18, 1999

Assignment and Assumption of Lease Agreement dated
September 29, 2000

First Amendment to Lease dated October 1, 2003

Second Amendment to Lease dated September 1, 2005
	 
	 	 
	Irma Manzanales

	 	Lease Agreement dated August 12, 2005
Rent Commencement Letter
	 
	 	 
	Randstad US L.P.

	 	Lease Agreement dated September 6, 2000

Amendment to Lease dated October ___, 2005

B-2-1

 

EXHIBIT C-1 TO LETTER AGREEMENT

PHOENIX ASSIGNMENT

[ATTACHED]

C-1

 

EXHIBIT C-2 TO LETTER AGREEMENT

FANNIN ASSIGNMENT

[ATTACHED]

C-2-1

 

EXHIBIT D TO LETTER AGREEMENT

FORM OF SNDA

Form of Subtenant Non-disturbance Agreement

SUBORDINATION, NON-DISTURBANCE AND ATTORNMENT AGREEMENT

     THIS
AGREEMENT (“Agreement”) dated as of the ___ day of                     , ___, by and between
[INSERT BREOF PHOENIX OR BREOF FANNIN, AS APPLICABLE], a                                         , having an
office at                                                                         
       
                                         (“Master Landlord”) and
                                        , a                                         
                    , having an office at                                         
(“Subtenant”).

W I T N E S S E T H:

     WHEREAS, on September 27, 2006, JPMorgan Chase Bank, National Association, a national banking
association (“Master Tenant”) sold, conveyed and assigned its interest in the Property legally
described in Exhibit A attached hereto (the “Land”) together with all buildings (“Buildings”) and
improvements constructed thereon (collectively with the Land, the “Real Estate”) to Master
Landlord;

     WHEREAS, Master Landlord then master leased the entire Real Estate back to Master Tenant
pursuant to that certain JPMorgan Chase Net Lease Agreement of Lease dated as of September 27,
2006 (as amended from time to time, the “Master Lease”) between Master Landlord, as landlord, and
Master Tenant, as tenant;

     WHEREAS, Master Tenant and Subtenant have heretofore entered into that certain [Agreement of
Lease] dated as of                     , 200___(the “Sublease”), wherein Master Tenant leased to
Subtenant a portion of Real Estate more particularly described therein (the “Premises”); and

     WHEREAS, the parties hereto desire, subject to the provisions set forth in this Agreement, to
assure Subtenant of possession of the Premises for the entire term of the Sublease, irrespective
of any default by Master Tenant under the Master Lease.

     NOW, THEREFORE, in consideration of the covenants and agreements contained herein, the
parties covenant and agree as follows:

     1. As long as no default exists after the applicable notice and grace period for the cure
thereof under the Sublease as would entitle Master Tenant, as the landlord thereunder, to terminate
the Sublease, Master Landlord agrees that:

     (a) Subtenant shall not be joined as a party defendant in any action or proceeding
which may be instituted or taken by Master Landlord for the purpose of

D-1

 

terminating the Master Lease (or Master Tenant’s possessory rights thereunder) by
reason of default by Master Tenant thereunder; and

     (b) Without limiting the provisions of Section 2 below, Subtenant shall not be evicted
from the Premises, nor shall Subtenant’s leasehold estate under the Sublease be terminated
or disturbed, nor shall any of Subtenant’s rights under the Sublease be affected in any way
by reason of any default by Master Tenant under the Master Lease.

     2. If, for any reason, the Master Lease is (or Master Tenant’s possessory rights thereunder
are) terminated, Subtenant shall attorn to Master Landlord under all the terms, covenants and
conditions of the Sublease for the balance of the term thereof, including any extension terms
thereunder, with the same force and effect as if Master Landlord were the landlord under the
Sublease. This attornment is to be effective and self-operative, without the execution of any
further instruments; and Subtenant shall promptly execute and deliver any instrument Master
Landlord shall reasonably request to evidence such attornment. Notwithstanding the foregoing
provisions of this Section 2, within thirty (30) days after such termination of the Master Lease
(or Master Tenant’s possessory rights thereunder) Master Landlord shall have the right, to be
effectuated upon written notice thereof from Master Landlord to Subtenant, to require that
Subtenant shall thereafter be obligated to pay for the balance of the term of the Sublease, in lieu
of the rental amounts set forth in the Sublease, a prorata portion (based on the ratio that the
rentable square footage of the Premises bears to the rentable square footage of the Building in
which the Premises is located) of the rental amounts Master Tenant was obligated to pay under the
Master Lease for such period; provided, however, Subtenant shall then have the right, to be
effectuated by written notice thereof delivered by Subtenant to Master Landlord within five (5)
business days after delivery of Master Landlord’s notice, to terminate the Sublease and thereupon
not attorn to Master Landlord as aforesaid, whereupon the Sublease shall terminate and Subtenant
shall vacate the Premises in accordance with the terms and provisions of the Sublease effective as
of the date which is thirty (30) days after Subtenant’s notice.

     3. If Master Landlord shall succeed to Master Tenant’s interest in the Sublease:

     (a) Master Landlord shall not be liable for any act or omission of any prior landlord
under the Sublease, but shall, within a reasonable time after terminating the Master Lease
(or Master Tenant’s possessory rights thereunder), cure any then continuing default of
Master Tenant under the Sublease which relates to the physical condition of the Premises
(e.g., sublandlord maintenance and repair obligations under the Sublease);

     (b) Master Landlord shall not be subject to any offsets or defenses which the Subtenant
may have against any prior landlord under the Sublease;

     (c) Master Landlord shall not be bound by any rent or additional rent which Subtenant
may have paid in advance for more than one month to any prior landlord under the Sublease;

     (d) Master Landlord shall not be responsible for any security deposit made by
Subtenant, except to the extent same has been delivered by Master Tenant to Master Landlord;
and

C-2

 

     (e) Master Landlord shall not be bound by any modification or amendment to the Sublease
made without Master Landlord’s consent, except with respect to any amendments or
modifications to the Sublease entered into by Master Landlord and Subtenant to evidence the
exercise of any expansion, renewal or termination options expressly set forth in the
Sublease.

     4. The Sublease shall at all times be subordinate to the Master Lease, subject to the terms of
this Agreement.

     5. If due to any default of Master Tenant under the Sublease, Subtenant shall have the right
to terminate the Sublease, Subtenant shall deliver notice of such default to Master Landlord, and
Subtenant shall not terminate the Sublease as a consequence of such default if Master Landlord
cures such default within a reasonable time after notice thereof has been given.

     6. Notices and other communications hereunder shall be in writing and shall be deemed given
when delivery is received or denied. Such notices and other communications shall be sent by hand,
by a nationally recognized overnight courier, or by U.S. Mail, return receipt requested, to:

	 	 	 	 	 	 	 
	 

	 	If to Master Landlord:	 	 	 	 
	 

	 	 	 	 

	 	  
	 

	 	 	 	 

	 	  
	 

	 	 	 	 

	 	  
	 

	 	 	 	 

	 	  
	 
	 	 	 	 	 	 
	 

	 	If to Subtenant:	 	 	 	 
	 

	 	 	 	 

	 	  
	 

	 	 	 	 

	 	  
	 

	 	 	 	 

	 	  
	 

	 	 	 	 

	 	  
	 
	 	 	 	 	 	 
	 

	 	with a copy to:	 	 	 	 
	 

	 	 	 	 

	 	  
	 

	 	 	 	 

	 	  
	 

	 	 	 	 

	 	  
	 

	 	 	 	 

	 	  

     7. This Agreement may not be modified except by an agreement in writing signed by the parties
hereto. This Agreement shall inure to the benefit of, and be binding upon, the parties hereto,
their respective heirs, representatives, successors and assigns, and any successor master landlords
and subtenants under the Sublease.

     8. This Agreement shall be governed by the laws of the State of ___. If any term of this
Agreement or the application thereof to any person or circumstances shall to any extent be invalid
or unenforceable, the remainder of this Agreement shall not be affected thereby Time is of the
essence under this Agreement.

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

C-3

 

	 	 	 	 	 	 	 
	 	 	[MASTER LANDLORD]
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	[SUBTENANT]
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

C-4

 

STATE OF                       )

                                                    ) ss.:

COUNTY OF                             )

     On
the ___ day of                                          in the year 200___before me, the undersigned, a Notary
Public in and for said State, personally appeared                                                                          
                           , personally
known to me or proved to me on the basis of satisfactory evidence to be the individual whose name
is subscribed to the within instrument and acknowledged to me that he executed the same in his
capacity, and that by his signature on the instrument, the individual, or the person upon behalf of
which the individual acted, executed the instrument.

	 	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Notary Public	 	 	 	 
	 

	 	My Commission Expires:	 	 	 	 
	 

	 	 	 	 

	 	  

C-5

 

STATE OF                       )

                                                    ) ss.:

COUNTY OF                             )

     On
the ___ day of                                          in the year 2006 before me, the undersigned, a Notary
Public in and for said State, personally appeared                                                             , personally known to
me or proved to me on the basis of satisfactory evidence to be the individual whose name is
subscribed to the within instrument and acknowledged to me that he executed the same in his
capacity, and that by his signature on the instrument, the individual, or the person upon behalf of
which the individual acted, executed the instrument.

	 	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Notary Public	 	 	 	 
	 

	 	My Commission Expires:	 	 	 	 
	 

	 	 	 	 

	 	  

C-6

 

EXHIBIT E TO LETTER AGREEMENT

COLLECTED RENTS AND SECURITY DEPOSITS

E-1

 

EXHIBIT Q

CONFIDENTIALITY AGREEMENT

[ATTACHED]

Q-1

 

SCHEDULE 1.1(o)

FANNIN GROUND LEASE DESCRIPTION

Lease Agreement dated January 1, 1968, by and between Mary Ella Jones, Individually and as
Independent Executrix of the Estate and Trustee under the Will of John Louis Jones, deceased, et
al, as Lessor, and First City National Bank of Houston, as Lessee, a Memorandum of which is
recorded in the Office of the County Clerk of Harris County, Texas under Clerk’s File Number
D-064945. As affected by Warranty Deed and Ground Lease Assignment with Vendor’s Lien to GFC No.
1, Ltd. recorded in the Office of the County Clerk of Harris County, Texas, under Clerk’s File No.
K213085. As affected by Substitute Trustee’s Deed recorded in the Office of the County Clerk of
Harris County, Texas, under Clerk’s File No. L914040. As affected by General Warranty Deed and
Ground Lease Assignment to DPC Properties, Inc. recorded in the Office of the County Clerk of
Harris County, Texas, under Clerk’s File No. M240239. As affected by Deed and Ground Lease
Assignment to Texas Commerce Bank National Association recorded in the Office of the County Clerk
of Harris County, Texas, under Clerk’s File No. P207238. As affected by assignment of tenants
interest in and to said lease to BREOF BNK Fannin LP, a Delaware limited partnership in instrument
recorded in the Office of the County Clerk of Harris County, Texas, under Clerk’s File No.
20060097463, and by Deed Without Covenants to BREOF BNK Fannin LP, a Delaware limited partnership,
recorded in the Office of the County Clerk of Harris County, Texas under Clerk’s file number
20060097462.

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