Document:

EXHIBIT
10.165

REINSTATEMENT AND FIRST AMENDMENT

TO
ASSIGNMENT AGREEMENT

THIS
REINSTATEMENT AND FIRST AMENDMENT TO ASSIGNMENT AGREEMENT (this “Amendment”), dated effective as of September 20, 2006, is
entered into by and between BRE/TZ ACQUISITIONS L.L.C., a Delaware limited
liability company (“Original Assignor”),
and BEHRINGER HARVARD OPERATING PARTNERSHIP I LP, a Texas limited partnership (“Purchaser”), and BRE/TZ
PROPERTIES L.L.C., a Delaware limited liability company (“New Assignor”),
as to paragraph 6 hereof, with reference to the following.

RECITALS:

A.   Original Assignor and Purchaser (by
assignment from Harvard Property Trust, LLC, a Delaware limited liability
company) are parties to that certain Assignment Agreement dated effective as of
September 11, 2006, relating to certain real property located at 101 S. Tryon
Street in the City of Charlotte, County of Mecklenberg, State of North
Carolina, as more particularly described therein (the “Agreement”).

B.   Purchaser terminated the Agreement by letter
dated September 19, 2006 (the “Termination Letter”).

C.   Notwithstanding delivery of the Termination
Letter, Original Assignor and Purchaser desire to (a) reinstate the Agreement,
(b) reflect Original Assignor’s assignment of the Agreement to New Assignor (and
New Assignor’s assumption of the obligations under the Agreement), and (c)  amend certain provisions of the Agreement.

NOW,
THEREFORE, in consideration of the recitals and the mutual covenants and
agreements of the parties as herein set forth, and for other good and valuable
consideration which the parties acknowledge receiving, Original Assignor and
Purchaser hereby agree as follows:

AGREEMENT:

1.     Capitalized
terms not defined herein shall have the same meaning ascribed to them in the
Agreement.

2.     Except as
modified by this Amendment, the Agreement is reinstated, ratified and confirmed
and is in full force and effect.  In the
event of a conflict between the terms of this Amendment and the Agreement, this
Amendment shall control.

3.     The
defined term “Aggregate Price” under the
Agreement hereafter means One Hundred Ninety-Four Million One Hundred Thousand
Dollars ($194,100,000).

4.     The
language in Section 2.2 (but not Section 2.2.1 or 2.2.2) of the Agreement is
deleted in its entirety and replaced with the following:

 

“In consideration of the assignment described above,
Purchaser shall pay to Assignor an amount (the “Assignment
and Deposit Consideration”) equal to the sum of:  (i) the Escrow Deposit on the “Assignment
Closing Date” (as hereinafter defined); and (ii) the amount (the “Assignment Consideration”) by which the Aggregate Price
exceeds the “Purchase Price” under the Purchase Agreement (it being understood
that in no event shall the Purchase Price exceed the Aggregate Price).  The Assignment and Deposit Consideration
shall be paid as follows:”

5.     On the
Assignment Closing Date, Assignor shall deposit with an escrow agent designated
by Purchaser an amount equal to Three Million Seven Hundred Fifty Thousand
Dollars ($3,750,000) less any amounts paid (or reimbursed to Tenant) by Seller
or Assignor in connection with the work to be done under Sections 10.6(a),
10.6(b)(1) and 10.6(b)(2) of the BofA Lease; and any such amounts paid (or
reimbursed to Tenant) by Seller or Assignor and not taken into account as of
the Assignment Closing Date shall be addressed as an adjustment in accordance
with the terms of Section 5.4.2 of the Purchase Agreement.

6.     Purchaser
acknowledges and agrees that: (a) except for the “Open Issues” (as defined
below), the Due Diligence Period has expired, (b) except for the Open Issues, all
due diligence matters are hereby waived by execution of this Amendment, and (c)
Purchaser shall have no right to terminate the Agreement under Section 3.4 of
the Agreement as a result of any due diligence examinations, review or
inspections of the Property conducted by Purchaser, except as set forth under
this Paragraph 5.  As used herein, “Open Issues” means Purchaser’s receipt, review and approval
of: (i) those certain Restrictive Covenants set forth in Book 3318, Page 529
and Book 3346, Page 337 in the Mecklenburg County Registry (the “Registry”); (ii) the Special Warranty Deed and Assignment of
Leases and Leasehold Estates set forth in Book 4076, Page 797, Book 4076, Page
776 and Book 4075, Page 786 in the Registry, and (iii) that certain Footing
Encroachment Easement set forth in Book 3761, Page 834 of the Registry.  If Purchaser has not delivered New Assignor
written notice (the “Satisfaction Notice”)
of Purchaser’s full satisfaction with respect to the Open Issues by 7 P.M. (EDT)
on September 21, 2006 (the “Cut-off Time”),
the Agreement shall immediately terminate. To the extent Purchaser has
delivered the Satisfaction Notice prior to the Cut-off Time, Purchaser shall
deposit the Additional Assignment Deposit with Escrow Agent on or prior to 4 PM
(EDT) on September 22, 2006.  Notwithstanding
Section 7.6 of the Agreement to the contrary, Purchaser shall have until 7 PM
(EDT) to deliver the Satisfaction Notice by facsimile.

7.     Original Assignor hereby assigns all of its
right, title and interest as “Assignor” in and to the Agreement, this Amendment
and all related escrow documents (collectively the “Assignment Documents”) to
New Assignor, including, without limitation, Original Assignor’s interest in the
Assignment Deposit.  New Assignor hereby
assumes all of Original Assignor’s rights, liabilities and obligations under
the Assignment Documents and agrees that it shall be bound by the terms and
provisions thereof.

8.     The terms
of the Agreement, as heretofore amended, are hereby ratified and confirmed by Original
Assignor, New Assignor and Purchaser.

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9.     This
Amendment may be executed in any number of counterparts, each of which shall be
deemed an original, and all of which shall constitute one and the same
Amendment. The delivery of counterpart signatures by facsimile transmission
shall have the same force and effect as the delivery of a signed original hard
copy.

This Amendment is executed effective as of the date
first set forth above.

	
   

  	
  ORIGINAL ASSIGNOR:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BRE/TZ ACQUISITION L.L.C.,

  
	
   

  	
  a Delaware limited liability company

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Anthony Myers

  	
   

  
	
   

  	
  Name:

  	
    Anthony Myers

  	
   

  
	
   

  	
  Title:

  	
    Managing Director

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  PURCHASER:

  
	
   

  	
   

  	
   

  
	
   

  	
  BEHRINGER HARVARD OPERATING 

  PARTNERSHIP I LP,

  
	
   

  	
  a Texas limited partnership

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Behringer Harvard REIT I Inc.,

  
	
   

  	
   

  	
  a Maryland
  corporation,

  
	
   

  	
   

  	
  Its general
  partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
    /s/ Jon
  L. Dooley

  
	
   

  	
   

  	
  Name:

  	
    Jon L. Dooley

  
	
   

  	
   

  	
  Title:

  	
    EVP – Real Estate

  
													

 

 

	
  FOR THE PURPOSES OF PARAGRAPHS

  	
   

  
	
  7 AND 8
  ABOVE:

  	
   

  
	
   

  	
   

  
	
  BRE/TZ
  PROPERTIES L.L.C.,

  	
   

  
	
  a Delaware
  limited liability company

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
    /s/
  Anthony Myers

  	
   

  
	
  Name:

  	
   Anthony Myers

  	
   

  
	
  Title:

  	
    Managing Director

  	
   

  
						

 

 3EXHIBIT 10.166

PURCHASE AGREEMENT

(Bank of America Plaza; Charlotte, North Carolina)

THIS AGREEMENT (this “Agreement”) is made and entered into as of
September 27, 2006, by and between Trizec Holdings, LLC, a Delaware
limited liability company (“Seller”),
and BRE/TZ Properties L.L.C., a Delaware limited liability company (“Buyer”).

R E C I T A L S

A.            Seller
is wholly-owned, indirectly through one or more subsidiary entities, by Trizec
Holdings Operating LLC (“Trizec Operating
Company”).

B.            The
Trizec Operating Company is a party to that certain agreement (the “Merger Agreement”) captioned “AGREEMENT AND
PLAN OF MERGER AND ARRANGEMENT AGREEMENT”, dated as of June 5, 2006, among
Trizec Properties, Inc., Trizec Operating Company, Trizec Canada Inc., Grace
Holdings LLC, Grace Acquisition Corporation, Grace OP LLC and 4162862 Canada
Limited, which provides for certain transactions (collectively, the “Merger”) more particularly described
therein.

C.            In
connection with the Merger, Seller desires to sell, and Buyer desires to
purchase, the “Property” (as hereinafter defined) on the terms and conditions
hereinafter documented.

NOW, THEREFORE, in
consideration of the mutual undertakings of the parties hereto, it is hereby
agreed as follows:

1.             Certain
Defined Terms.  As used herein:

1.1           “Purchase Price” shall mean $                             .

1.2               “Escrow Deposit” shall mean $0.00, together
with all interest accrued thereon, if any.

2.             Purchase
and Sale.  Upon the terms and
conditions hereinafter set forth, Seller shall sell to Buyer, and Buyer shall
purchase from Seller, the “Property”.  As
used herein, the “Property” means
collectively, all right, title and interest of Seller in and to (a) the land
(the “Land”) described in Exhibit “A”,
located at 101 S. Tryon St., in the City of Charlotte, County of Mecklenburg,
State of North Carolina, (b) (i) the leasehold estate (the “Orr Leasehold Estate”) under that certain
ground lease (as amended, the “Orr Ground
Lease”) dated May 28, 1971, between Orr Corporation, as lessor, and
North Carolina National Bank, predecessor-in-interest to Seller, as lessee,
(ii) the leasehold estate (the “Pitts
Leasehold Estate”; and together with the Orr Leasehold Estate,
collectively, the “Leasehold Estates”)
under that certain ground lease (as amended, the “Pitts Ground Lease”; and together with the Orr Ground Lease,
collectively, the “Ground Leases”)
dated October 18, 1973, between Richard A. Pitts, as lessor, and Independence
Square Associates, predecessor-in-interest to Seller, as lessee, (c) the
license (the “License”) under that
certain License (as amended, the “Parking
License”) entered into as of May 1, 2006 (but executed May 17,
2006), between the City of Charlotte, a municipal corporation organized under
the laws of the State of Carolina, as licensor, and Seller, as licensee (the
land demised under the Ground Leases and the

 

License being herein
collectively called the “Leased Land”),
(d) adjacent streets, alleys and rights-of-way, and the rights, benefits,
licenses, interests, privileges, easements, tenements, hereditaments and
appurtenances on the Land and the Leased Land or in anywise appertaining
thereto, (e) the improvements, structures and fixtures located upon the Land
and the Leased Land (collectively, the “Improvements”),
consisting primarily of an office building and retail mall sometimes known as “Bank
of America Plaza”, (f) all tangible personal property located on, and used in
connection with, the Land, Improvements and the Leased Land (collectively, the “Personal Property”) including all books,
records and documents pertaining to the leasing and operation of the Property
(but expressly excluding any “Excluded Materials” [as hereinafter defined])
building materials, supplies, hardware, carpeting and other inventory located
on or in the Land, Improvements or the Leased Land and maintained in connection
with Seller’s ownership and operation of the Property, but excluding computers
and computer software and any other personal property listed on Exhibit “B”,
and (g) all “Leases” (as hereinafter defined), and to the extent the following
items are assignable, all “Service Agreements” (as hereinafter defined),
governmental permits, entitlements, licenses and approvals, development rights,
maps, studies, reports, designs, plans and specifications, drawings (including
CAD drawings) warranties and guarantees that Seller has received in connection
with the Improvements (including any work or services performed with respect
to, or equipment installed in, the Improvements), tenant lists, advertising
material, telephone exchange numbers and all trademarks, logos and tradenames
(including Bank of America Plaza but excluding “Trizec” and any derivations
thereof), directly relating to Bank of America Plaza or the foregoing Property
(collectively, the “Intangible Property”).

3.             Payment
of Purchase Price.  The Purchase
Price shall be paid to Seller by Buyer as follows:

3.1           Escrow
Deposit.  Within two (2) business
days after the execution and delivery of this Agreement, Buyer shall deliver
the Escrow Deposit to Chicago Title Insurance Company (the “Escrow
Agent”), at its offices at 711 Third Avenue, New York, New York
10017, Attention:  Neal Miranda.  The Escrow Deposit shall be delivered to the
Escrow Agent by wire transfer of immediately available federal funds or by bank
or cashier’s check drawn on a national bank reasonably satisfactory to
Seller.  The amounts deposited hereunder
shall be held by the Escrow Agent as a deposit against the Purchase Price in
accordance with the terms and provisions of this Agreement.  At all times that the Escrow Deposit or any
portion thereof is being held by the Escrow Agent, the Escrow Deposit shall be
invested by the Escrow Agent in the following investments (“Approved Investments”):  (i) United States Treasury obligations, (ii)
United States Treasury-backed repurchase agreements issued by a major money
center banking institution reasonably acceptable to Seller and Buyer, (iii)
such money market fund or other short-term investment option offered by the
Escrow Agent as may be reasonably agreed to by Seller and Buyer, or (iv) such
other manner as may be reasonably agreed to by Seller and Buyer.  The Escrow Deposit shall be disposed of by
the Escrow Agent only as provided in this Agreement.

3.2           Closing
Payment.  The Purchase Price, as
adjusted by the application of the Escrow Deposit and by the prorations and
credits specified herein, shall be paid by wire transfer of immediately
available federal funds (through the escrow described in Section 5) as and when provided in Section 5.2.2
and the “Escrow Instructions”, as hereinafter defined (the amount to be paid
under this Section 3.2 being herein called the “Closing Payment”).

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4.             Conditions
Precedent.  The obligation of Buyer
to acquire, and Seller to transfer, the Property as contemplated by this
Agreement is subject to satisfaction of each of the following conditions
precedent (any of which may be waived prior to the “Closing” (as hereinafter
defined) only in writing by the party in whose favor such condition exists) on
or before the applicable date specified for satisfaction of the applicable
condition.  If any of such conditions is
not fulfilled (or waived in writing) pursuant to the terms of this Agreement,
then the party in whose favor such condition exists may terminate this
Agreement and, in connection with any such termination made in accordance with
this Section 4, Seller and Buyer shall be released from further obligation or
liability hereunder (except for those obligations and liabilities which
expressly survive such termination), and the Escrow Deposit shall be disposed
of in accordance with Section 9.  The
Closing shall constitute a waiver of all conditions precedent.

4.1           Title
Matters.

4.1.1        Title
Report; Survey.  Seller has delivered
to Buyer a copy of a Title Commitment (“Title
Commitment”) dated June 29, 2006 covering the Property from Fidelity
National Title Insurance Company (the “Title
Company”) located at 1 Park Avenue, Suite 1402, New York, New York
10016, Attn:  Ken Cohen/Paul P. Resiman,
Vice President/Senior Counsel.  In
addition, Seller has delivered to Buyer that certain draft survey of the
Property received by Buyer on August 22, 2006, prepared by Barrett Surveying
Group (for Bock & Clark) and identified as Job No. BSG# B060183A (“Survey”). 
Buyer is deemed to have approved the exceptions to title shown on the
Title Commitment, the matters disclosed on the Survey and such other title or
survey matters as were disclosed in writing to Buyer prior to the date of this
Agreement.

4.1.2        Additional
Title Matters.  Approval by Buyer of
any additional exceptions to title or survey matters disclosed in writing after
the date of this Agreement (“Additional Title
Matters”) shall be a condition precedent to Buyer’s obligations to
purchase the Property (Buyer hereby agreeing that its approval of Additional
Title Matters shall not be unreasonably withheld).  Unless Buyer gives written notice (“Title Disapproval Notice”) that it
disapproves any Additional Title Matters, stating the Additional Title Matters
so disapproved, before the sooner to occur of the Closing or ten (10) days
after receipt of written notice of such Additional Title Matters, Buyer shall
be deemed to have approved such Additional Title Matters.  Seller shall have until the day before
Closing within which to remove the disapproved Additional Title Matters set
forth therein from title (Seller having the right but not the obligation to do
so).  In the event Seller determines at
any time that it is unable or unwilling to remove any one or more of such
disapproved Additional Title Matters, Seller may give written notice to Buyer
to such effect; in such event, Buyer may, at its option, terminate this
Agreement upon written notice to Seller but only if given prior to the sooner
to occur of the Closing or five (5) days after Buyer receives Seller’s
notice.  If Buyer fails to give such
termination notice by such date, Buyer shall be deemed to have waived its
objection to, and approved, the matters set forth in Seller’s notice.

4.1.3        Seller
Monetary Liens.  Notwithstanding the
foregoing provisions of this Section 4.1, Seller shall be obligated to take
such actions as may be required by  Title
Company so that  Title Company is willing
to issue title insurance to Buyer without exception for any “Seller Monetary Liens” (which, as used
herein, means any mortgage or deed of trust encumbering the Property and any
other monetary liens that encumber the Property as a result of the acts or
omissions

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of Seller).  Such actions shall include obtaining a
pay-off letter and leaving a portion of the Purchase Price in escrow to satisfy
the Seller Monetary Liens.

4.1.4        Exceptions
to Title.  Buyer shall be obligated
to accept title to the Property, subject to the following exceptions to title
(the “Permitted Exceptions”):

(a)           Real
estate taxes and assessments not yet delinquent;

(b)           The
printed exceptions, if any, which appear in the form owner’s policy of title
insurance which  the Title Company has
agreed in writing (through a commitment or otherwise) to issue (excluding those
printed exceptions that Title Company has agreed in writing prior to the date
of this Agreement to delete); provided, that if Title Company has not agreed in
writing prior to the date of this Agreement to issue an owner’s policy, then
title shall be subject to the printed exceptions which appear in the standard
form owner’s title policy of title insurance issued by Title Company in the
State of North Carolina; and

(c)           Such other
exceptions to title or survey exceptions as have been approved or deemed
approved by Buyer pursuant to the above provisions of this Section 4.1 or
otherwise expressly permitted under this Agreement.

Conclusive evidence of
the availability of such title shall be the willingness of Title Company to
issue to Buyer on the Closing Date an owner’s title insurance policy in such
form as Title Company has agreed in writing prior to the date of this Agreement
to issue or if Title Company has not agreed in writing prior to the date of
this Agreement to issue an owner’s policy, the standard form issued in the
State of North Carolina (“Owner’s Policy”),
in the face amount of the Purchase Price, which policy shall show (i) title to
the Land, the Leasehold Estates and Improvements to be vested of record in
Buyer, and (ii) the Permitted Exceptions to be the only exceptions to title.

4.1.5        Endorsements
to Owner’s Policy.  It is understood
that Buyer may request a number of endorsements to the Owner’s Policy and that
Buyer intends to request that the Owner’s Policy be an ALTA extended coverage
policy.  Buyer has satisfied itself prior
to the date of this Agreement that Title Company will be willing to issue such
endorsements and such form of policy at Closing and, to the extent  Title Company has agreed in writing prior to the
date of this Agreement to issue such form of policy and such endorsements
(without requiring any indemnity, affidavit or other assurance from Seller
other than a certificate in the form of Exhibit “C”), the issuance of the same
at Closing shall be a condition to Closing; and otherwise, the issuance of such
endorsements or extended coverage shall not be a condition to Closing.  In no event shall Seller be obligated to
provide any indemnity or other document in order to issue the same other than a
certificate in the form of Exhibit “C”.

4.2           Due
Diligence Reviews.  Prior to the date
hereof, Buyer has performed and completed all of Buyer’s due diligence
examinations, reviews and inspections of all matters pertaining to the purchase
of the Property, including all toxic, soils, engineering and environmental
reports and all leases, license agreements and service contracts, sewer/water
conditions, utilities service information, zoning information, access
information, assessments and city fees, developmental conditions and approvals,
operating expenses and legal, physical, environmental and compliance matters
and conditions respecting the Property (the foregoing being collectively called

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the “Property Information”).  Subject to Section 4.2.1, Seller shall
provide Buyer and its actual and potential investors, lenders and assignees,
and their respective representatives, attorneys, accountants, consultants,
surveyors, title companies, agents, employees, contractors, appraisers,
architects and engineers, with reasonable access to the Property upon reasonable
advance notice and shall also make available for review and copying (at Buyer’s
expense) copies of all documents, materials and other information relating to
the Property Information in Seller’s possession, all upon reasonable advance
notice.  In no event, however, shall
Seller be obligated to make available (x) any reports or studies that have been
superseded by subsequent reports or studies; and (y) any of the following
confidential and proprietary materials (“Excluded
Materials”):  (1) information
contained in Seller’s financial analyses or projections; (2) material which is
subject to attorney-client privilege or which is attorney work product; (3)
appraisal reports or letters; (4) organizational agreements of Seller, its
members, and their respective affiliates or any affiliates of Seller (and
financial and other documents relating to Seller’s members and their respective
affiliates); (5) material which Seller is legally required not to disclose
other than by reason of legal requirements voluntarily assumed by Seller after
the date hereof; or (6) the documents (the “Merger
Documents”) governing the Merger, to the extent the same are not of
public record.

4.2.1        Review
Standards.  Buyer shall at all times
conduct its due diligence review, inspections and examinations in a manner so
as to not cause liability, damage, lien, loss, cost or expense to Seller or the
Property and so as to not unreasonably interfere with or disturb any tenant at
the Property, and Buyer will indemnify, defend, and hold Seller and the
Property harmless from and against any such liability, damage, lien, loss, cost
or expense (except to the extent arising from the mere discovery of existing
conditions that are not exacerbated by Buyer or its agents).  Prior to entry upon the Property, Buyer shall
provide Seller with copies of certificates of insurance evidencing
comprehensive general liability insurance policies (naming Seller as an
additional insured) which shall be maintained by Buyer in connection with its
investigations upon the Property, with limits, coverages and insurers under
such policies reasonably satisfactory to Seller.  Without limitation on the foregoing, in no
event shall Buyer:  (a) conduct any physical
testing (environmental, structural or otherwise) at the Property (such as soil
borings, water samplings or the like) without Seller’s express written consent,
which consent, as to physical testing, may be given or withheld in Seller’s
sole discretion (and Buyer shall in all events promptly return the Property to
its prior condition and repair thereafter); (b) contact any consultant or other
professional engaged by Seller or any tenant of the Property (or its
representatives) without Seller’s express written consent (which shall not be
unreasonably withheld); or (c) contact any governmental authority having
jurisdiction over the Property without Seller’s express written consent (which
shall not be unreasonably withheld) other than ordinary contact normally
associated with routine due diligence examinations that does not involve any
discussions with governmental officials (except to the extent necessary to
request records).  Consents under clause
(b) or clause (c) above may be given orally or by email by Jean Dorans (312-798-6007/jean.dorans@trz.com)
or John Murray (704-350-0867/john.murray@trz.com).  Seller shall have the right, at its option,
to cause a representative of Seller to be present at all inspections, reviews
and examinations conducted hereunder. 
Buyer shall schedule any entry (by it or its designees) onto the Property
in advance with Seller.  In the event of
any termination hereunder (other than by reason of Seller’s default), Buyer
shall return all documents and other materials furnished by Seller hereunder
and at Seller’s written request, Buyer shall promptly deliver to Seller true,
accurate and complete copies of any written reports relating to the Property
prepared for or on behalf of Buyer by any third party.  The “Confidentiality Agreement” (as
hereinafter defined), if any, is hereby incorporated by this reference

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and shall apply to all
information or data received or discovered in connection with any of the
foregoing inspections, reviews or examinations.

4.2.2        Required
Audit.  Buyer has advised Seller that
Buyer or its potential assignee (“Potential
Assignee”) must cause to be prepared up to three (3) years of
audited financial statements in respect of the Property in compliance with the
policies of Buyer or the Potential Assignee, respectively, and certain laws and
regulations, including Securities and Exchange Commission Regulation S-X.
Seller shall use commercially reasonable efforts to cooperate with Buyer’s or
Potential Assignee’s auditors in the preparation of such audited financial
statements (it being understood and agreed that the foregoing covenant shall
survive the Closing for a period of one (1) year). Without limiting the
generality of the preceding sentence (a) Seller shall, during normal business
hours and after reasonable prior notice, allow Buyer’s and Potential Assignee’s
auditors reasonable access to such books and records maintained by Seller (and
Seller’s manager of the Property) in respect of the Property as necessary to
prepare such audited financial statements; (b) Seller shall use commercially
reasonable efforts (and, as used in this Agreement, commercially reasonable
efforts shall not include any obligation to institute legal proceedings or to
expend any monies) to provide to Buyer and Potential Assignee such financial
information and supporting documentation as are necessary for such auditors to
prepare audited financial statements; (c) if Buyer, Potential Assignee or such
auditors require any information that is in the possession of the party from
which Seller purchased the Property, Seller shall contact such prior owner of
the Property and use commercially reasonable efforts to obtain from such party
the information requested; (d) Seller will make available for interview by
Buyer, the Potential Assignee and their respective auditors the manager of the
Property or other agents or representatives of Seller responsible for the
day-to-day operation of the Property and the keeping of the books and records
in respect of the operation of the Property; and (e) if Seller has audited
financial statements with respect to the Property, Seller shall promptly
provide Buyer’s or Potential Assignee’s auditors with a copy of such audited
financial statements. If after the Closing Date Seller obtains an audited
financial statement in respect of the Property for a fiscal period prior to the
Closing Date that was not completed as of the Closing Date, then Seller shall
promptly provide Buyer and Potential Assignee with a copy of such audited
financial statement, and the foregoing covenant shall survive Closing for a
period of one (1) year.  Notwithstanding
the foregoing, (x) in no event shall Seller have any obligation to institute
legal proceedings or to expend any monies in connection with its obligations
under this Section 4.2.2, (y) Buyer shall reimburse Seller for Seller’s
out-of-pocket costs in connection with this Section 4.2.2, and (z) in no event
shall Buyer be obligated to provide or make available any Excluded Materials.

4.3           Existing
Financing Matters.  The Property is
subject to certain encumbrances which secure the “Existing Loans” (as defined
on Exhibit “E”).  The Existing Loans will
come due upon the sale contemplated hereby and a portion of the Purchase Price
will be used to repay or defease the Existing Loans in full.

4.4           Tenant
Estoppel Certificates.  Receipt of
estoppel certificates (“Tenant Estoppel
Certificates”) from (i) the tenants (the “Required Tenants”) listed on Exhibit “F”, and (ii) a
sufficient number of other tenants at the Property such that estoppel
certificates shall have been received pursuant to clauses (i) and (ii) hereof
with respect to not less than 70% of the total net rentable square footage of
the Property covered by Leases in effect as of the Closing Date, in the form
required under Section 4.4.1 (which do not disclose matters adverse to the
Property, in any

 6
 

 

material respect, which
are not set forth in the Leases), shall be a condition precedent to Buyer’s
obligation to acquire the Property hereunder. 
If on or before the Closing Date such condition is not satisfied (or
waived by Buyer), then this Agreement shall terminate and Buyer shall be
entitled to a refund of the Escrow Deposit (and no party hereto shall have any
further obligation under this Agreement except under those provisions that
expressly survive a termination of this Agreement).

4.4.1        Each
Tenant Estoppel Certificate shall be substantially in the applicable form
attached to Exhibit “F” (or if Seller, after using commercially reasonable
efforts to obtain certificates in such form, is unable to obtain the same, then
in the form, if any, prescribed in the applicable Lease); provided, however,
that with respect to a Lease with a regional or national tenant, the form may
also be the standard form generally used by such tenant.  In addition, any provisions of the applicable
estoppel certificates respecting defaults, defenses, disputes, environmental
matters, claims, offsets, credits, abatements, concessions and recaptures
against rent and other charges may be limited to the actual knowledge of the
applicable tenant.

4.4.2        Seller
shall utilize commercially reasonable efforts (and, as used in this Agreement,
commercially reasonable efforts shall not include any obligation to institute
legal proceedings or to expend any monies) to obtain Tenant Estoppel
Certificates from the tenant under each Lease.

4.4.3        Notwithstanding
anything to the contrary herein, in the event Seller fails to obtain a Tenant
Estoppel Certificate from any particular tenant under any Lease (after
requesting the same):

(a)           In the
case of a Tenant Estoppel Certificate to be obtained from a Required Tenant (or
in the case of any other tenant, if Seller notifies Buyer that this Section
4.4.3 applies to such tenant), Seller may (but shall not be obligated to) give
written notice (referencing this Section 4.4.3(a)) to Buyer stating that Seller
has not obtained such Tenant Estoppel Certificate (together with a copy of the
certificate, if any, Seller has obtained from such Tenant), in which event
Buyer may terminate this Agreement by written notice to Seller at any time
prior to the earlier to occur of the Closing Date or five (5) business days
after receipt of Seller’s notice (in which case the Escrow Deposit shall be
returned to Buyer and no party hereto shall have any further obligation under
this Agreement except under those provisions that expressly survive a termination
of this Agreement) and if Buyer fails to terminate within such period, Buyer
shall be deemed (except for purposes of clause (b) below) to have received a
Tenant Estoppel Certificate with respect to such Tenant for purposes of
satisfying the condition under this Section 4.4; and

(b)           In the
case of a Tenant Estoppel Certificate to be obtained from a tenant other than a
Required Tenant, Seller may (but shall not be obligated to) deliver to Buyer on
the Closing Date a certificate (the “Seller
Tenant Certificate”) in the applicable form attached as Exhibit “F”
executed by Seller, certifying that the information set forth in the Tenant
Estoppel Certificate prepared for such tenant, to Seller’s “knowledge” (as
defined in Section 7.4), is correct in all material respects, and in such
event, Seller shall be deemed to have delivered a Tenant Estoppel Certificate
with respect to such tenant (except in the case of a Required Tenant) for
purposes of satisfying the condition under this Section 4.4.  Any Seller Tenant Certificate shall be
subject to the limitations set forth in Section 7.3 and Section 10.2.

4.5           Performance
by Seller.  The performance and
observance, in all material respects, by Seller of all covenants and agreements
of this Agreement to be performed or observed

 7
 

 

by Seller prior to or on
the Closing Date shall be a condition precedent to Buyer’s obligation to
purchase the Property.  Without
limitation on the foregoing, in the event that the “Seller Closing Certificate”
(as hereinafter defined) shall disclose any material exceptions to the
representations and warranties of Seller contained in this Agreement (other
than matters (1) expressly permitted by the terms of this Agreement or (2)
known to Buyer on or prior to the date of this Agreement), then Buyer shall
have the right to terminate this Agreement upon prior written notice to Seller
and the Escrow Deposit shall be returned to Buyer.

4.6           Performance
by Buyer.  The performance and
observance, in all material respects, by Buyer of all covenants and agreements
of this Agreement to be performed or observed by it prior to or on the Closing
Date (excluding the obligation to deliver the Purchase Price so long as Buyer
is ready, willing and able to do so) shall be a condition precedent to Seller’s
obligation to sell the Property.  Without
limitation on the foregoing, in the event that the “Buyer Closing Certificate”
(as hereinafter defined) shall disclose any material exceptions to the
representations and warranties of Buyer contained in this Agreement which are
not expressly permitted by the terms of this Agreement, then Seller shall have
the right to terminate this Agreement.

4.7           Ground
Lease Consents.  Seller and Buyer
shall have obtained a written consent from the respective ground lessor under
each of the Ground Leases in form reasonably satisfactory to Seller and Buyer
with respect to the purchase contemplated by this Agreement.  The immediately preceding sentence shall be
for the benefit of both Seller and Buyer. 
Seller shall use commercially reasonable efforts to obtain (a) estoppel
certificates (“Ground Lease Estoppel
Certificates”) from the ground lessor under each of the Ground
Leases concerning the ground lessor’s knowledge as to certain material terms of
the respective Ground Lease (i.e.,
no default, and Ground Lease is in full force and effect), and (b) a consent
(the “Parking License Consent”)
from the licensor under the Parking License in form reasonably satisfactory to
Seller and Buyer with respect to the purchase contemplated by this Agreement;
provided that neither the receipt of such Ground Lease Estoppel Certificates
nor the Parking License Consent shall be a condition precedent to Buyer’s
obligation to acquire the Property hereunder.

4.8           Merger.  The obligations of Buyer and Seller under this
Agreement are conditioned upon the closing of the Merger on or before the
Closing Date.  If such closing fails to
occur, then this Agreement may be terminated at the election of either Buyer or
Seller upon written notice to the other party, and if this Agreement shall be
terminated under this Section 4.8, the Escrow Deposit shall be refunded to
Buyer, and no party shall have any further obligation under this Agreement
except for those provisions that expressly survive a termination of this
Agreement.

4.9           Waiver
of ROFO.  On or prior to the Closing
Date, Seller shall have provided Buyer with evidence reasonably satisfactory to
Buyer that Bank of America, N.A. (“Tenant”)
has waived (either through a writing or by its failure to timely respond) its
right of first offer (i.e., its
right to purchase the Property pursuant to the Office Lease for Bank of America
Plaza, Charlotte, North Carolina, dated December 21, 2005, between Trizec
Holdings, LLC and Tenant [the “BofA Lease”])
with respect to the purchase contemplated by this Agreement.  This Section 4.9 shall be for the benefit of
both Seller and Buyer.

5.             Closing
Procedure.  The closing (the “Closing”) of the sale and purchase herein
provided shall occur on the Closing Date. 
As used herein, the “Closing Date”
means October 4, 2006.

 8
 

 

5.1           Escrow.  The Closing shall be accomplished pursuant to
escrow instructions (the “Escrow Instructions”)
among Buyer, Seller and the Escrow Agent in the form of Exhibit “G”, which
Buyer and Seller shall execute concurrently herewith.

5.2           Closing
Deliveries.  The parties shall
deliver to the Escrow Agent the following:

5.2.1        Seller
Deliveries.  At least three (3)
business days prior to the Closing Date, Seller shall deliver to the Escrow
Agent the following:

(a)           A duly
executed and acknowledged special warranty deed (the “Deed”) in the form of Exhibit “H”;

(b)           A duly
executed original bill of sale, assignment and assumption agreement (the “Assignment and Assumption”) in the form of
Exhibit “I”;

(c)           A duly
executed original certificate of Seller (the “Seller
Closing Certificate”) in the form of Exhibit “J” updating the
representations and warranties contained in this Agreement to the Closing Date,
which shall not disclose any material exceptions unless they (i) are expressly
permitted by this Agreement, (ii) could not reasonably be avoided by Seller, or
(iii) are known to Buyer on or prior to the date of this Agreement;

(d)           A duly
executed original certificate of “non-foreign” status in the form of Exhibit “K”
and any required state certificate that is sufficient to exempt Seller from any
state withholding requirement with respect to the sale contemplated by this
Agreement;

(e)           Evidence
reasonably satisfactory to Buyer that any property management agreement or
leasing brokerage agreement affecting the Property has been terminated
effective as of the Closing;

(f)            Duly
executed notices to each of the tenants under the Leases (“Tenant Notices”), in the form of Exhibit “L”,
addressed to each of such tenants;

(g)           Evidence
reasonably satisfactory to Buyer and the Escrow Agent respecting the due
organization of Seller and the due authorization and execution by Seller of
this Agreement and the documents required to be delivered hereunder;

(h)           To
the extent they are then in Seller’s possession, and have not theretofore been
delivered to Buyer:  (i) any plans and
specifications for the Improvements; (ii) all unexpired warranties and
guarantees which Seller has received in connection with any work or services performed
with respect to, or equipment installed in, the Improvements; (iii) all keys
and other access control devices for the Improvements; (iv) originals of all
Leases, all correspondence to or from any tenants relating to the Leases; and
(v) originals of all Service Agreements that will remain in effect after the
Closing and all correspondence and other books and records (but expressly
excluding any Excluded Materials) relating to the ongoing operations and
maintenance of the

 9
 

 

Property (which materials
under this clause (h) may be either delivered at Closing or left at the
management office at the Property);

(i)            Such
additional documents as may be reasonably required by Buyer and the Escrow
Agent in order to consummate the transactions hereunder (provided the same do
not increase in any material respect the costs to, or liability or obligations
of, Seller in a manner not otherwise provided for herein); and

(j)            a duly
executed and acknowledged assignment and assumption of Ground Lease (the “Ground Leasehold Assignment”) in the form
of Exhibit “W”, with respect to each of the Ground Leases.

5.2.2        Buyer
Deliveries.  At least three (3)
business days prior to the Closing Date (except as to the Closing Payment,
which shall be delivered no later than 11:00 A.M. local time on the Closing
Date), Buyer shall deliver to the Escrow Agent the following:

(a)           The
Closing Payment by wire transfer of immediately available federal funds;

(b)           A duly
executed original Assignment and Assumption;

(c)           A duly
executed original certificate of Buyer (“Buyer
Closing Certificate”) in the form of Exhibit “M” updating the
representations and warranties contained in this Agreement to the Closing Date
which (i) shall not disclose any material exceptions unless they are expressly
permitted by this Agreement or could not reasonably be avoided by Buyer and
(ii) confirm the release and other provisions therein contained;

(d)           Duly
executed Tenant Notices;

(e)           Evidence
reasonably satisfactory to Seller and the Escrow Agent respecting the due
organization of Buyer and the due authorization and execution by Buyer of this
Agreement and the documents required to be delivered hereunder;

(f)            Such
additional documents as may be reasonably required by Seller and the Escrow
Agent in or to consummate the transactions hereunder (provided the same do not
increase in any material respect the costs to, or liability or obligations of,
Buyer in a manner not otherwise provided for herein); and

(g)           a duly
executed and acknowledged original Ground Lease Assignment with respect to each
of the Ground Leases.

5.2.3        Mutual
Deliveries.  At least two (2)
business days prior to the Closing Date, Buyer and Seller shall mutually
execute and deliver to the Escrow Agent, the following:

(a)           A Closing
Statement reflecting the Purchase Price, and the adjustments and prorations
required hereunder and the allocation of income and expenses required hereby;
and

 10

 

(b)           Such
transfer tax forms as required by state and local authorities.

5.3           Closing
Costs.   Seller shall pay (1) all
state and county transfer taxes payable in connection with the sale
contemplated herein, and (2) 50% of all escrow charges.  Buyer shall pay (1) 50% of all escrow
charges, (2) all title insurance premium costs for the Owner’s Policy it
obtains, including all endorsements, (3) the costs to update the Survey, and
(4) all fees, costs or expenses in connection with Buyer’s due diligence
reviews hereunder.  Any other closing
costs shall be allocated in accordance with local custom.  Seller and Buyer shall pay their respective
shares of prorations as hereinafter provided. 
Notwithstanding anything to the contrary herein, Buyer shall pay to
Seller on the Closing Date, in addition to the Purchase Price, an amount equal
to the “Seller Closing Cost Amount” (as hereinafter defined).  As used herein, the “Seller Closing Cost Amount” means (a) the
closing costs Seller is obligated to pay under the first sentence of this
Section 5.3, and (b) any brokerage commissions Seller is responsible to pay to
Seller’s Broker. If Buyer assigns this Agreement, then notwithstanding anything
to the contrary in this Agreement, including the provisions of Section 10.7, or
the instrument effecting such assignment (including any assumption therein
contained), the assignee shall have no obligation (and the assignor shall not
be released from the obligation) to make such payment. For purposes of greater
clarity, if Buyer assigns this Agreement, then such obligation of Buyer to pay
the Seller Closing Cost Amount shall be deemed excluded from any assumption by
the assignee of the obligations of Buyer under this Agreement (notwithstanding
the terms of such assumption), and the assignor shall remain liable for such
obligation (it being the intent of the parties that only the initial Buyer
under this Agreement shall be responsible for payment of the Seller Closing
Cost Amount).

5.4           Prorations.

5.4.1        Items
to be Prorated.  The following shall
be prorated between Seller and Buyer as of the Closing Date (on the basis of
the actual number of days elapsed over the applicable period), with Buyer being
deemed to be the owner of the Property during the entire day on the Closing
Date and being entitled to receive all operating income of the Property, and
being obligated to pay all operating expenses of the Property, with respect to
such day:

(a)           All
non-delinquent real estate and personal property taxes and assessments on the
Property assessed or levied during the current year (whether payable before or
after Closing).  Seller shall be
responsible for the payment of any real estate and personal property taxes that
are delinquent as of the date before Closing. 
In no event shall Seller be charged with or be responsible for any
increase in the taxes on the Property resulting from the sale of the Property
contemplated by this Agreement or from any improvements made or leases entered
into on or after the Closing Date.  If
any assessments on the Property are payable in installments, then the
installment allocable to the current period shall be prorated (with Buyer being
allocated the obligation to pay any installments due after the Closing
Date).  All real estate and personal
property taxes shall be prorated on a calendar year basis.

(b)           All fixed
and additional rentals under the Leases, security deposits (except as
hereinafter provided) and other tenant charges. 
Seller shall deliver or provide a credit in an amount equal to all
prepaid rentals for periods after the Closing Date and all refundable cash
security deposits (to the extent the foregoing were made by tenants under the
Leases and are not

 11
 

 

applied or forfeited prior to the date of this Agreement) to Buyer on
the Closing Date.  Seller shall also transfer
to Buyer any security deposits which are held in the form of letters of credit
(the “SD Letters of Credit”) if
the same are transferable; if any of the SD Letters of Credit are not
transferable, Seller shall request the tenants obligated under such SD Letters
of Credit to cause new letters of credit to be issued in favor of Buyer in
replacement thereof and in the event such a new letter of credit is not issued
in favor of Buyer by Closing, Buyer shall diligently pursue such replacement
after Closing and Seller shall take all reasonable action, as directed by Buyer
and at Buyer’s expense, in connection with the presentment of such SD Letters
of Credit for payment as permitted under the terms of the applicable Lease, and
in consideration of Seller’s agreement as aforesaid, Buyer shall indemnify,
defend and hold Seller harmless from any liability, damage, loss, cost or
expense resulting from an alleged wrongful drawing upon any of the SD Letters
of Credit after the Closing.  Rents which
are delinquent (or payable but unpaid) as of the Closing Date shall not be
prorated on the Closing Date.  Until the
date that is 12 months after the Closing, Buyer shall include such
delinquencies (or unpaid amounts) in its normal billing and shall pursue the
collection thereof in good faith after the Closing Date (but Buyer shall not be
required to litigate or declare a default in any Lease).  To the extent Buyer receives rents (or income
in connection with other tenant charges) on or after the Closing Date, such
payments shall be applied first toward the rent (or other tenant charge) for
the month in which the Closing occurs (but, with respect to any rent or other
income payable to Seller pursuant to this clause for the period prior to
Closing, only as to payors who, as of the Closing, are not delinquent beyond
the grace period provided in the applicable Lease or other document), then to
the rent (or other tenant charge) owed to Buyer in connection with the
applicable Lease or other document for which such payments are received, and
then to any delinquent rents (or other tenant charges) owed to Seller, with
Seller’s share thereof being promptly delivered to Seller; provided, however,
that any year-end or similar reconciliation payment shall be allocated as
hereinafter provided.  Buyer may not
waive any delinquent (or unpaid) rents or modify a Lease so as to reduce or
otherwise affect amounts owed thereunder for any period in which Seller is
entitled to receive a share of charges or amounts without first obtaining
Seller’s written consent.  After such
12-month period, Seller hereby reserves the right to pursue any remedy for
damages against any tenant owing delinquent rents and any other amounts to
Seller (but shall not be entitled to terminate any lease or any tenant’s right
to possession).  Buyer shall reasonably
cooperate with Seller, at no material out-of-pocket cost to Buyer, in any
collection efforts hereunder (but shall not be required to litigate or declare
a default under any Lease).  With respect
to delinquent or other uncollected rents and any other amounts or other rights
of any kind respecting tenants who are no longer tenants of the Property as of
the Closing Date, Seller shall retain all rights relating thereto.

(c)           Notwithstanding
anything to the contrary herein, tenant reimbursements for real estate taxes
shall be prorated as follows:  Seller
shall be entitled to all such reimbursements payable prior to the Closing Date
and Buyer shall be entitled to all such reimbursements payable on or after the
Closing Date; provided that (1) if such reimbursements are payable on a
monthly, quarterly or annual basis, then the reimbursement payable in the
month, quarter or year, respectively, in which the Closing Date occurs shall be
prorated based upon the number of days in such month, quarter or year that are
prior to the Closing Date (as to Seller) and the number of days in such month,
quarter or year that are on or after the Closing Date (as to Buyer), and (2)
any adjustment (with respect to such a reimbursement) payable after the Closing
Date shall be allocated in the same manner as the reimbursement itself.

 12
 

 

(d)           When the
actual amounts of “Other Reimbursable Tenant Expenses” (as hereinafter defined)
for the year in which the Closing occurs have been determined and the annual reconciliation
payments are due, Buyer shall use reasonable efforts to collect from the
tenants of the Property any underpayment of Other Reimbursable Tenant Expenses
then payable by the tenants and pay to Seller Seller’s share of said
underpayment promptly upon collection thereof. 
As used herein, the term “Other
Reimbursable Tenant Expenses” shall mean payments required to be
paid by tenants under Leases for such tenant’s share of insurance, common area
maintenance and other operating expenses of the Property (other than real
estate taxes).  If more amounts have been
collected from tenants for Other Reimbursable Tenant Expenses than have been
incurred for Other Reimbursable Tenant Expenses, Seller will promptly pay to
Buyer Seller’s share of such excess collected amount as and when such Other
Reimbursable Tenant Expenses are determined. 
Seller’s “share” of Other Reimbursable Tenant Expenses shall be
determined by comparing the amounts collected by Seller from tenants on account
of Other Reimbursable Tenant Expenses for the period commencing on January 1,
2006 and ending on the Closing Date to the actual Other Reimbursable Tenant
Expenses paid or incurred by Seller during such period.

(e)           All
operating expenses; however, there will be no prorations for debt service,
insurance premiums or payroll (because Buyer is not acquiring Seller’s
financing, insurance or employees).

(f)            Buyer
shall transfer all utilities to its name as of the Closing Date, and where
necessary, post deposits with the utility companies.  Seller shall use commercially reasonable
efforts to cause all utility meters to be read as of the Closing Date.  Seller shall be entitled to recover any and
all deposits held by any utility company as of the Closing Date.  All charges for utilities shall be prorated
outside of the escrow contemplated herein within sixty (60) days after the
Closing Date.

(g)           If the
Closing occurs, Buyer shall be responsible for the payment (or, in the case of
any amounts payable prior to Closing, the reimbursement to Seller) of (A) all “Tenant
Inducement Costs” (as hereinafter defined) and “Commissions” (as hereinafter
defined) which become due and payable (whether before or after Closing) as a
result of (1) any “New Leases”
(i.e., Leases entered into during the “Lease Approval Period”, as hereinafter
defined, in accordance with this Agreement), (2) amendments (“New Amendments”) entered into during the
Lease Approval Period in accordance with this Agreement to renew, extend,
expand or otherwise amend “Existing Leases”
(i.e., Leases existing as of the date of this Agreement) or New Leases, or (3)
any options under Existing Leases exercised by tenants during the Lease
Approval Period, but in each case under clause (1), (2) or (3) above, only to
the extent such Tenant Inducement Costs and Commissions are set forth in the
applicable Lease or Exhibit “N” (the “Leasing
Cost Exhibit”) or in the case of a New Lease or New Amendment are
otherwise disclosed in writing to Buyer prior to the approval of the applicable
New Lease or New Amendment, (B) all Tenant Inducement Costs and Commissions as
a result of renewals, extensions, or expansions occurring on or after the
Closing Date of Existing Leases or New Leases, but only to the extent such
Tenant Inducement Costs and Commissions are set forth in the applicable Lease
or Leasing Cost Exhibit or, in the case of a New Lease or New Amendment, are
otherwise disclosed in writing to Buyer prior to the approval of such New Lease
or New Amendment, and (C) all other Tenant Inducement Costs and Commissions
that are identified on the Leasing Cost Exhibit as Buyer’s responsibility.  If, as of the Closing Date, Seller shall have
paid any Tenant Inducement Costs or Commissions for which Buyer is responsible

 13
 

 

pursuant to the foregoing provisions, Buyer shall reimburse Seller
therefor at Closing. Seller shall pay, prior to Closing, or credit Buyer at
Closing (to the extent unpaid) all Commissions and Tenant Inducement Costs that
are identified on the Leasing Cost Exhibit as Seller’s responsibility; and any
other Commissions and Tenant Inducement Costs relating to Existing Leases, New
Leases or New Amendments that are not Buyer’s responsibility under this Section
5.4.1(g); and (subject to the reimbursement obligations set forth above),
Seller shall pay when due all Commissions and Tenant Inducement Costs payable
after the date hereof and prior to Closing. 
As used herein (a) “Commissions”
shall mean all brokerage commissions, finder’s fees or other similar
compensation payable by the landlord under a Lease in connection with such
Lease and (b) “Tenant Inducement Costs”
shall mean any out-of-pocket payments required under a Lease to be paid by the
landlord thereunder to or for the benefit of the tenant thereunder which are in
the nature of a tenant inducement, including tenant improvement costs, lease
buyout costs and moving, design, refurbishment and club membership
allowances.  The term “Tenant Inducement
Costs” shall not include loss of income resulting from any free rental period,
it being agreed that Seller shall bear the loss resulting from any free rental
period until the Closing Date and that Buyer shall bear such loss from and
after the Closing Date.  For purposes
hereof, the term “Lease Approval Period”
shall mean the period from the date of this Agreement until the Closing Date.

(h)           If any
tenant of the Property is obligated to pay percentage rent based upon the
calendar year or lease year in which the date of Closing occurs (the “Percentage Rent Year”), Buyer shall, within
thirty (30) days after receipt of such payment with respect to the Percentage
Rent Year, remit to Seller that portion which is equal to the number of days
which elapsed between the commencement date of the Percentage Rent Year for
each such tenant, and the Closing Date, and the total number of days in such
Percentage Rent Year.  If Seller has
received payments of percentage rent based on any Percentage Rent Year in which
the date of Closing occurs, in excess of Seller’s share as calculated as set
forth above in this Section 5.4.1(h), it shall promptly pay such excess to
Buyer.  Notwithstanding any other
provision hereof, the obligations of the parties under this Section 5.4.1(h)
will survive until the date which is three (3) months after the last date on
which any percentage rent was due and payable from any tenant of the Property
with respect to the Percentage Rent Year.

(i)            All rent
payable under the Ground Leases and the Parking License shall be prorated
between Seller and Buyer as of the Closing Date on an accrual basis, based on
the actual number of days in the month during which the Closing Date occurs.
Seller shall be responsible for all rent payable under the Ground Leases and
the Parking License attributable to the period before the Closing Date and
Buyer shall be responsible for all rent payable under the Ground Leases and the
Parking License attributable to the period on and after the Closing Date.

5.4.2        Calculation.  The prorations and payments shall be made on
the basis of a written statement submitted to Buyer and Seller by the Escrow
Agent prior to the Closing and approved by Buyer and Seller.  In the event any prorations or apportionments
made under this Section 5.4 shall prove to be incorrect for any reason, then
any party shall be entitled to an adjustment to correct the same.  Any item which cannot be finally prorated
because of the unavailability of information shall be tentatively prorated on
the basis of the best data then available and reprorated when the information
is available.  The obligations of Seller
and Buyer under this Section 5.4 shall survive the Closing until the end of the
“Survival Period” (as hereinafter defined). 
Notwithstanding the foregoing, as soon as reasonably practicable after
the end of the calendar year in

 14
 

 

which the Closing occurs,
Buyer shall deliver an accounting and substantiation reasonably acceptable to
Seller covering all prorations under this Section 5.4, including any year-end
or similar reconciliations.

6.             Condemnation
or Destruction of Property.  In the
event that, after the date hereof but prior to the Closing Date, either any
portion of the Property is taken pursuant to eminent domain proceedings or any
of the improvements on the Property are damaged or destroyed by any casualty,
Seller shall be required to give Buyer prompt written notice of the same but
shall have no obligation to repair or replace any such damage, destruction or
taken property.  Seller shall, upon
consummation of the transaction herein provided, assign to Buyer (except to the
extent any condemnation proceeds or insurance proceeds are attributable to lost
rents or other items applicable to any period prior to the Closing) all claims
of Seller respecting any condemnation or casualty insurance coverage, as
applicable, and all condemnation proceeds or proceeds from any such casualty
insurance received by Seller on account of any casualty (except to the extent
required for collection costs or repairs by Seller prior to the Closing Date),
as applicable.  In connection with any
assignment of insurance proceeds hereunder, Seller shall credit Buyer with an
amount equal to the applicable deductible amount under Seller’s insurance (but
not more than the amount by which (x) the cost as of the Closing Date to repair
the damage is greater than (y) the insurance proceeds and coverage to be
assigned to Buyer).  In the event the
condemnation award or the cost of repair of damage to the Property on account
of a casualty, as applicable, shall exceed 2% of the Purchase Price (or if a
casualty is uninsured, and Seller does not elect to credit Buyer with an amount
equal to the cost to repair such uninsured casualty, Seller having the right,
but not the obligation, to do so), Buyer may, at its option, terminate this
Agreement by notice to Seller, given on or before the Closing Date, whereupon
Buyer shall receive a refund of the Escrow Deposit (and no party hereto shall
have any further obligation in connection herewith except under those
provisions that expressly survive a termination of this Agreement).

7.             Representations,
Warranties and Covenants.

7.1           Representations
and Warranties of Seller.  Seller
hereby represents and warrants to Buyer that:

(a)           Leases.  There are no leases of space in the Property
or other agreements to occupy all or any portion of the Property, which will be
in force after the Closing and under which Seller is the landlord (whether by
entering into the leases or acquiring the Property subject to the leases) other
than the Leases.  As used herein, “Leases” means, collectively, (x) the leases
listed on Exhibit “O” (the “Lease Exhibit”),
including amendments thereto entered into in accordance with this Agreement and
(y) the leases of space in the Property (including amendments thereto) entered
into in accordance with this Agreement. 
To Seller’s knowledge, all of the Leases are in full force and
effect.  None of the Leases has been
amended except as set forth in the Lease Exhibit.  To Seller’s knowledge, neither Seller nor any
tenant is in monetary default or has given written notice of any material
non-monetary default under any of the Leases, except as set forth on Exhibit “P”.  To Seller’s knowledge, as of the Closing,
there shall be no unpaid Commissions or Tenant Inducement Costs which Seller is
obligated to pay (before or after Closing) with respect to any Leases in effect
as of the Closing, except for the following (i) those payable in connection
with renewals, extensions, permitted amendments and expansions occurring after
the date of this Agreement with respect to Existing Leases (provided that such
obligations are set forth in the

 15
 

 

applicable Lease or in
the Leasing Cost Exhibit), (ii) those credited to Buyer at Closing under
Section 5.4.1(g), (iii) those payable in connection with new Leases or
amendments which are permitted hereunder (which have been disclosed in writing
to Buyer prior to the approval of a Lease or amendment approved or deemed
approved during the Lease Approval Period), and (iv) all other Commissions and
Tenant Inducement Costs listed on the Leasing Cost Exhibit.  To Seller’s knowledge, as of the date hereof,
there are no Tenant Inducement Costs or Leasing Commissions that are payable
and unpaid except to the extent identified on the Leasing Cost Exhibit as “Currently
Outstanding Costs”.

(b)           Litigation.  Other than litigation involving routine slip
and fall matters which are covered by insurance (and as to which Seller shall
remain responsible), to Seller’s knowledge, there is no pending (nor has Seller
received any written notice of any threatened) action, litigation, condemnation
or other proceeding against the Property or against Seller with respect to the
Property.

(c)           Compliance.  Except as set forth on Exhibit “Q”, Seller
has received no written notice from any governmental authority having
jurisdiction over the Property to the effect that the Property is not in
compliance with applicable laws and ordinances other than notices of
non-compliance which have been remedied.

(d)           Service
Agreements.  Seller has not entered
into any service agreements, equipment leasing contracts or other contracts
relating to the Property which will be in force after the Closing, except for
the Leases, the Ground Leases, the Parking License, the Service Agreements,
contracts recorded in the official records of the County in which the Property
is located, and “Excluded Contracts” (as hereinafter defined).  To Seller’s knowledge, Seller is not in
monetary default and neither party has given written notice of any material
non-monetary default under the Service Agreements.  As used herein, the “Service Agreements” means, collectively,
(a) the contracts described in Exhibit “R”, (b) service or equipment leasing
contracts (other than Excluded Contracts) which are cancelable without penalty
on thirty (30) days’ or less notice, and (c) service or equipment leasing
contracts entered into in accordance with this Agreement.  As used herein, “Excluded Contracts” means Seller’s contracts for (i)
insurance; (ii) the engagement of attorneys or accountants; or (iii) the Merger
Agreement and the other Merger Documents that do not relate exclusively to the
Property.  The Excluded Contracts are not
being assigned to or assumed by Buyer hereunder.

(e)           Due
Authority.  This Agreement and all
agreements, instruments and documents herein provided to be executed or to be
caused to be executed by Seller are and on the Closing Date will be duly
authorized, executed and delivered by and are binding upon Seller.  Seller is a Delaware limited liability
company, duly organized and validly existing and in good standing under the
laws of such state, and is duly authorized and qualified to do all things
required of it under this Agreement. 
Seller has the capacity and authority to enter into this Agreement and
consummate the transactions herein provided without the consent or joinder of
any other party (except as otherwise may be set forth in this Agreement).

(f)            No
Conflict.  To Seller’s knowledge,
except with respect to Tenant’s right of first offer under the BofA Lease and
any consents required under the Ground Leases and the Parking License, neither
this Agreement nor any agreement, document or instrument

 16
 

 

executed or to be
executed in connection with the same, nor anything provided in or contemplated
by this Agreement or any such other agreement, document or instrument, does now
or shall hereafter breach, violate, invalidate, cancel, make inoperative or
interfere with, or result in the acceleration or maturity of, any agreement,
document, instrument, right or interest, or applicable law affecting or
relating to Seller or the Property.

(g)           Environmental
Matters.  To Seller’s knowledge,
Exhibit “S” constitutes all of the third party reports relating to Hazardous
Materials at the Property in its possession or control.   The term “Hazardous
Material” shall mean asbestos, petroleum products, and any other
hazardous waste or substance which has, as of the date hereof, been determined
to be hazardous or a pollutant by the U.S. Environmental Protection Agency, the
U.S. Department of Transportation, or any instrumentality authorized to
regulate substances in the environment which has jurisdiction over the
Property.

(h)           Ground
Leases.  To Seller’s knowledge,
Exhibit “X” contains a true and complete list of the documents comprising each
of the Ground Leases.  To Seller’s
knowledge, each of the Ground Leases is in full force and effect.  To Seller’s knowledge, none of the Ground
Leases has been amended except as set forth in Exhibit “X.”  To Seller’s knowledge, neither Seller nor any
ground lessor is in monetary default or has given written notice of any
material non-monetary default under any of the Ground Leases.

(i)            Parking
License.  To Seller’s knowledge,
Exhibit “Y” contains a true and complete list of the documents comprising the
Parking License.  To Seller’s knowledge,
the Parking License is in full force and effect.  To Seller’s knowledge, the Parking License
has not been amended except as set forth in Exhibit “Y.”  To Seller’s knowledge, neither Seller nor
licensor is in monetary default or has given written notice of any material
non-monetary default under the Parking License.

7.2           Representations
and Warranties of Buyer.  Buyer
hereby represents and warrants to Seller that this Agreement and all
agreements, instruments and documents herein provided to be executed or to be
caused to be executed by Buyer are and on the Closing Date will be duly
authorized, executed and delivered by and are binding upon Buyer; Buyer is a
limited liability company, duly organized and validly existing and in good
standing under the laws of the State of Delaware, and is duly authorized and
qualified to do all things required of it under this Agreement; and Buyer has
the capacity and authority to enter into this Agreement and consummate the
transactions herein provided without the consent or joinder of any other party
(except as otherwise may be set forth in this Agreement).  To Buyer’s knowledge, neither this Agreement
nor any agreement, document or instrument executed or to be executed in
connection with the same, nor anything provided in or contemplated by this
Agreement or any such other agreement, document or instrument, does now or
shall hereafter breach, violate, invalidate, cancel, make inoperative or
interfere with, or result in the acceleration or maturity of, any agreement,
document, instrument, right or interest, or applicable law affecting or
relating to Buyer.

7.3           Survival.  The foregoing representations and warranties
and all other obligations, provisions and liabilities under this Agreement or
any certificate delivered in connection herewith (including any cause of action
by reason of a breach thereof) shall survive until the date that is nine (9)
months after the Closing Date (the period beginning on the date hereof and
ending on

 17
 

 

such date being herein
called the “Survival Period”), at
which time such representations and warranties, covenants, obligations,
provisions and liabilities (and any cause of action resulting from a breach
thereof not then in litigation) shall terminate (other than the obligations of
Seller and Buyer under Section 4.2.2, which shall survive for one (1) year).  Notwithstanding the foregoing, Seller shall
have no liability, and Buyer shall make no claim against Seller, for (and Buyer
shall be deemed to have waived any failure of a condition hereunder by reason
of) a failure of any condition or a breach of any representation or warranty,
covenant or other obligation of Seller under this Agreement or any document
executed by Seller in connection with this Agreement (including for this
purpose any matter that would have constituted a breach of Seller’s
representations and warranties had they been made on the Closing Date) if (a)
the failure or breach in question constitutes or results from a condition,
state of facts or other matter that was known to Buyer on or prior to the date
of this Agreement, or (b) the failure or breach in question constitutes or
results from a condition, state of facts or other matter that was known to
Buyer prior to Closing and Buyer proceeds with the Closing.

7.4           Knowledge.

(1)           Definition.  When a statement is made under this Agreement
to the “knowledge” of a party (or
other similar phrase), it means that none of the Designated Representatives of
such party has any actual knowledge (without further investigation) of any
facts indicating that such statement is not true.  Each Designated Representative shall be
deemed to have actual knowledge of any matter received by such Designated
Representative in writing.  None of the
Designated Individuals shall have any personal liability under this Agreement.

(2)           Designated
Representatives.  The “Designated Representatives” are limited to
the following individuals:

(a)           for
Seller:  Ms. Jean Dorans and Mr. John
Murray; and

(b)           for
Buyer:  Mr. Anthony Myers.

7.5           Interim
Covenants of Seller.  Until the
Closing Date or the sooner termination of this Agreement:

7.5.1        Maintenance/Operation.  Seller shall maintain and operate the
Property in substantially the same manner as prior hereto pursuant to its
normal course of business (such maintenance obligations not including
extraordinary capital expenditures or expenditures not incurred in such normal
course of business), subject to reasonable wear and tear and further subject to
destruction by casualty or other events beyond the reasonable control of
Seller.  Without limitation of the
foregoing, Seller shall use reasonable efforts to maintain its current
insurance.

7.5.2        Service
Contracts.  Seller shall not enter
into, materially modify or terminate any additional service or equipment
leasing contracts or other similar agreements relating to the Property or
materially modify or terminate the Service Agreements without the prior consent
of Buyer, which shall not be unreasonably withheld, except for service or
equipment leasing contracts that are not material and are cancelable without
penalty on thirty (30) days’ notice.  If
Buyer fails to notify Seller in writing of Buyer’s objections within five (5)
business days of Buyer’s

 18
 

 

receipt of the proposed
modification, termination or new contract terms (and a request for Buyer’s
approval), then Buyer shall be deemed to have approved the same.

7.5.3        Leases.  Seller shall have the right to continue to
offer the Property for lease in the same manner as prior hereto pursuant to its
normal course of business and, upon request, Seller shall keep Buyer reasonably
informed as to the status of leasing prior to the Closing Date.  Seller shall not enter into any new leases or
materially modify or terminate the then existing Leases without the consent of
Buyer, which may be withheld in Buyer’s sole discretion.  If Buyer fails to notify Seller in writing of
Buyer’s objections within five (5) business days of Buyer’s receipt of the
proposed modification, termination or new lease terms (and a request for Buyer’s
approval), then Buyer shall be deemed to have approved the same.  After the date hereof, Seller shall not apply
any tenant security deposits to cure delinquencies under any Leases.

7.5.4        Ground
Leases and Parking License.  Seller
shall not materially modify or terminate the Ground Leases or the Parking
License without the consent of Buyer, which may be withheld in Buyer’s sole
discretion.  If Buyer fails to notify
Seller in writing of Buyer’s objections within five (5) business days of
Buyer’s receipt of the proposed modification or termination (and a request for
Buyer’s approval), then Buyer shall be deemed to have approved the same. 

7.6           Access to the
Property.  Seller shall continue to
give Buyer access to the Property in accordance with and subject to the
provisions of Section 4.2.

7.7           Encumbrances.  Seller shall not encumber the Property with
any mortgages, deeds of trust or other encumbrances except as expressly
permitted above without Buyer’s consent (which shall not be unreasonably
withheld as to easements, licenses  and
similar documents required in the ordinary course of business).

7.8           Condominium
Association Estoppel.  Seller shall
use commercially reasonable efforts to obtain an estoppel certificate from the
Trade Tryon Plaza Condominium Association concerning the association's
knowledge as to certain material terms of the Declaration of Condominium for
Trade Tryon Plaza Condominium which affects a portion of the Property (i.e., no default, and the Declaration is
in full force and effect); provided that the receipt of such estoppel
certificate shall not be a condition precedent to Buyer’s obligation to acquire
the Property hereunder.

8.             DISCLAIMER; RELEASE.  AS AN ESSENTIAL INDUCEMENT TO SELLER TO ENTER
INTO THIS AGREEMENT, AND AS PART OF THE DETERMINATION OF THE PURCHASE PRICE,
BUYER ACKNOWLEDGES, THAT, EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN THIS
AGREEMENT AND THE DOCUMENTS EXECUTED BY SELLER IN CONNECTION HEREWITH:

8.1           DISCLAIMER.

8.1.1        AS-IS; WHERE-IS.  THE SALE OF THE PROPERTY HEREUNDER IS AND
WILL BE MADE ON AN “AS IS, WHERE IS” BASIS. SELLER HAS NOT MADE, DOES NOT MAKE
AND SPECIFICALLY NEGATES AND DISCLAIMS ANY REPRESENTATIONS, WARRANTIES OR
GUARANTIES OF ANY KIND OR CHARACTER WHATSOEVER, WHETHER EXPRESS OR IMPLIED,
ORAL OR

 19
 

 

WRITTEN, PAST, PRESENT OR FUTURE OF, AS TO,
CONCERNING OR WITH RESPECT TO THE PROPERTY OR ANY OTHER MATTER WHATSOEVER.

8.1.2        SOPHISTICATION OF BUYER. 
BUYER IS A SOPHISTICATED BUYER WHO IS FAMILIAR WITH THE OWNERSHIP AND
OPERATION OF REAL ESTATE PROJECTS SIMILAR TO THE PROPERTY AND BUYER HAS OR WILL
HAVE ADEQUATE OPPORTUNITY TO COMPLETE ALL PHYSICAL AND FINANCIAL EXAMINATIONS
(INCLUDING ALL OF THE EXAMINATIONS, REVIEWS AND INVESTIGATIONS REFERRED TO IN
SECTION 4) RELATING TO THE ACQUISITION OF THE PROPERTY HEREUNDER IT DEEMS
NECESSARY, AND WILL ACQUIRE THE SAME SOLELY ON THE BASIS OF AND IN RELIANCE
UPON SUCH EXAMINATIONS AND THE TITLE INSURANCE PROTECTION AFFORDED BY THE
OWNER’S POLICY AND NOT ON ANY INFORMATION PROVIDED OR TO BE PROVIDED BY SELLER
(INCLUDING ANY INFORMATION DELIVERED BY SELLER UNDER SECTION 4.2.2).

8.1.3        DUE DILIGENCE MATERIALS. 
ANY INFORMATION PROVIDED OR TO BE PROVIDED WITH RESPECT TO THE PROPERTY
IS SOLELY FOR BUYER’S CONVENIENCE AND WAS OR WILL BE OBTAINED FROM A VARIETY OF
SOURCES.  SELLER HAS NOT MADE ANY
INDEPENDENT INVESTIGATION OR VERIFICATION OF SUCH INFORMATION AND MAKES NO (AND
EXPRESSLY DISCLAIMS ALL) REPRESENTATIONS AS TO THE ACCURACY OR COMPLETENESS OF
SUCH INFORMATION.  SELLER SHALL NOT BE
LIABLE FOR ANY MISTAKES, OMISSIONS, MISREPRESENTATION OR ANY FAILURE TO
INVESTIGATE THE PROPERTY NOR SHALL SELLER BE BOUND IN ANY MANNER BY ANY VERBAL
OR WRITTEN STATEMENTS, REPRESENTATIONS, APPRAISALS, ENVIRONMENTAL ASSESSMENT
REPORTS, OR OTHER INFORMATION PERTAINING TO THE PROPERTY OR THE OPERATION
THEREOF (INCLUDING ANY INFORMATION REQUIRED TO BE DELIVERED UNDER SECTION
4.2.2), FURNISHED BY SELLER, ITS MANAGER, OR BY ANY REAL ESTATE BROKER, AGENT,
REPRESENTATIVE, AFFILIATE, DIRECTOR, OFFICER, SHAREHOLDER, EMPLOYEE, SERVANT OR
OTHER PERSON OR ENTITY ACTING ON SELLER’S BEHALF (COLLECTIVELY, “SELLER RELATED
PARTIES”).

8.2           RELEASE.  EFFECTIVE AS OF CLOSING, BUYER HEREBY
RELEASES SELLER AND ALL SELLER RELATED PARTIES FROM ALL CLAIMS WHICH ANY BUYER
OR ANY PARTY CLAIMING BY, THROUGH OR UNDER BUYER (A “BUYER RELATED PARTY”) HAS
OR MAY HAVE AS OF CLOSING ARISING FROM OR RELATED TO ANY MATTER OR THING
RELATED TO OR IN CONNECTION WITH THE PROPERTY INCLUDING THE PROPERTY
INFORMATION, ANY INFORMATION DELIVERED UNDER SECTION 4.2.2, THE GROUND LEASES,
THE PARKING LICENSE, THE LEASES AND THE TENANTS THEREUNDER, ANY CONSTRUCTION
DEFECTS, ERRORS OR OMISSIONS IN THE DESIGN OR CONSTRUCTION AND ANY
ENVIRONMENTAL CONDITIONS, AND BUYER SHALL NOT LOOK TO ANY SELLER RELATED
PARTIES IN CONNECTION WITH THE FOREGOING FOR ANY REDRESS OR RELIEF.  THIS RELEASE SHALL BE GIVEN FULL FORCE AND
EFFECT ACCORDING TO EACH OF ITS EXPRESSED TERMS AND 

 20

 

PROVISIONS, INCLUDING THOSE RELATING TO UNKNOWN AND
UNSUSPECTED CLAIMS, DAMAGES AND CAUSES OF ACTION.  THE FOREGOING PROVISIONS OF THIS SECTION 8.2
SHALL NOT LIMIT, HOWEVER, THE OBLIGATIONS OF ANY SELLER RELATED PARTY UNDER
THIS AGREEMENT AND THE MERGER AGREEMENT, AND THE DOCUMENTS EXECUTED IN
CONNECTION HEREWITH AND THEREWITH.

8.3           SURVIVAL.  THIS SECTION 8 SHALL SURVIVE ANY TERMINATION
OF THIS AGREEMENT AND THE CLOSING.

9.             Disposition
of Escrow Deposit.

9.1           Default by Seller.  If the transaction herein provided shall not
be closed by reason of Seller’s default under this Agreement or the failure of
satisfaction of the conditions benefiting Buyer under Section 4 or the
termination of this Agreement in accordance with Section 4 or 6, then the
Escrow Deposit shall be returned to Buyer, and neither party shall have any
further obligation or liability to the other (other than those obligations that
expressly survive a termination of this Agreement); provided, however, if the
transactions hereunder shall fail to close by reason of Seller’s default, then
Buyer shall be entitled as its sole and exclusive remedy to either (1)
specifically enforce this Agreement, but specific performance must be commenced
within sixty (60) days after the Closing Date or be forever barred or (2)
terminate this Agreement and obtain a return of the Escrow Deposit, but no
other action, for damages or otherwise shall be permitted.

9.2           Default by Buyer.  In the event the transaction herein provided
shall not close by reason of Buyer’s default (all conditions benefiting Buyer
under Section 4 having been satisfied or waived in writing), then Seller may
terminate this Agreement and (1) if there is an Escrow Deposit, then the Escrow
Deposit shall be delivered to Seller as full compensation and liquidated
damages under this Agreement for such failure to close, and (2) if there is no
Escrow Deposit, then Buyer shall pay to Seller an amount (the “Liquidated Damages Amount”)  equal to 5% of the Purchase Price as full
compensation and liquidated damages under this Agreement for such failure to
close.  In connection with the foregoing,
the parties recognize that Seller will incur expense in connection with the
transaction contemplated by this Agreement and that the property will be
removed from the market; further, that it is extremely difficult and
impracticable to ascertain the extent of detriment to Seller caused by the
breach by Buyer under this Agreement and the failure of the consummation of the
transaction contemplated by this agreement or the amount of compensation Seller
should receive as a result of Buyer’s breach or default, and that the Escrow
Deposit  (or, if there is no Escrow
Deposit, the Liquidated Damages Amount) represents the parties’ best current
estimate of such detriment.  In the event
the sale of the Property shall not be consummated on account of Buyer’s
default, then the retention of the Escrow Deposit (or if there is no Escrow
Deposit, payment of the Liquidated Damages Amount) shall be Seller’s sole and
exclusive remedy under this Agreement by reason of such default, subject to the
provisions of this Agreement that expressly survive a termination of this
Agreement.  This Section 9.2 shall
survive any termination of the Agreement.

9.3           Closing.  In the event the transaction herein provided
shall close, the Escrow Deposit shall be applied as a partial payment of the
Purchase Price.

 21
 

 

10.           Miscellaneous.

10.1         Brokers.

10.1.1      Except
for Eastdil Secured (“Broker”),
Seller represents and warrants to Buyer, and Buyer represents and warrants to Seller,
that no broker or finder has been engaged by it, respectively, in connection
with the sale contemplated by this Agreement. 
In the event of a claim for broker’s or finder’s fee or commissions in
connection with the sale contemplated by this Agreement, then Seller shall
indemnify, defend and hold harmless Buyer from the same if it shall be based
upon any statement or agreement alleged to have been made by Seller, and Buyer
shall indemnify, defend and hold harmless Seller from the same if it shall be based
upon any statement or agreement alleged to have been made by Buyer.

10.1.2      If
and only if the sale contemplated herein closes, Seller has agreed to pay a
brokerage commission to Broker pursuant to a separate agreement.  Section 10.1.1 is not intended to apply to
leasing commissions incurred in accordance with this Agreement.  Seller’s Broker shall have no rights by
reason of this Agreement.

10.2         Limitation of Liability.

10.2.1      Notwithstanding
anything to the contrary contained herein, if the Closing of the transactions
hereunder shall have occurred:  (1)
Seller shall have no liability to Buyer (and Buyer shall make no claim against
Seller) for a breach of any representation or warranty or any other obligation
of Seller, or for indemnification, under this Agreement or any certificate
executed by Seller in connection with this Agreement, unless (a) the valid
claims for all such breaches and indemnifications collectively aggregate to
more than $100,000, and (b) the liability of Seller under this Agreement and
such documents does not exceed, in the aggregate, an amount (the “Maximum Liability Amount”) equal to 3% of
the Purchase Price (it being understood that, notwithstanding anything to the
contrary in this Agreement or any other document, Seller’s liability under this
Agreement and the documents executed by Seller in connection herewith shall in
no event exceed, in the aggregate, the Maximum Liability Amount) and (2) in no
event shall Seller be liable for any consequential or punitive damages.

10.2.2      The foregoing
shall be in addition to, and not in limitation of, any further limitation of
liability that might otherwise apply (whether by reason of Buyer’s waiver,
relinquishment or release of any applicable rights or otherwise).

10.3         Exhibits; Entire Agreement;
Modification.  All exhibits attached
and referred to in this Agreement are hereby incorporated herein as if fully
set forth in (and shall be deemed to be a part of) this Agreement.  This Agreement and the “Confidentiality Agreement” (which as used
herein, means the confidentiality agreement, if any, signed by Buyer in favor
of Seller with respect to the Property) contain the entire agreement between
the parties respecting the matters herein set forth and supersedes all prior
agreements between the parties hereto respecting such matters.  This Agreement may not be modified or amended
except by written agreement signed by both parties.

10.4         Time of the Essence.  Time is of the essence of this
Agreement.  However, whenever action must
be taken (including the giving of notice or the delivery of documents) under
this Agreement during a certain period of time (or by a particular date) that
ends (or occurs) on a non

 22
 

 

business day, then such
period (or date) shall be extended until the immediately following business
day.  As used herein, “business day” means any day other than a
Saturday, Sunday or federal or North Carolina or New York state holiday.

10.5         Interpretation.  Section headings shall not be used in
construing this Agreement.  Each party
acknowledges that such party and its counsel, after negotiation and
consultation, have reviewed and revised this Agreement.  As such, the terms of this Agreement shall be
fairly construed and the usual rule of construction, to the effect that any
ambiguities herein should be resolved against the drafting party, shall not be
employed in the interpretation of this Agreement or any amendments,
modifications or exhibits hereto or thereto. 
The words “herein”, “hereof”, “hereunder”, “hereby”, “this Agreement”
and other similar references shall be construed to mean and include this
Agreement and all amendments and supplements hereto unless the context shall
clearly indicate or require otherwise. 
Whenever the words “including”, “include” or “includes” are used in this
Agreement, they shall be interpreted in a non-exclusive manner.  Except as otherwise indicated, all Exhibit
and Section references in this Agreement shall be deemed to refer to the
Exhibits and Sections in this Agreement.

10.6         Governing Law.  This Agreement shall be construed and
enforced in accordance with the laws of the State of North Carolina.

10.7         Successors and Assigns.  This Agreement and the terms and provisions
hereof shall inure to the benefit of and be binding upon the successors and
assigns of the parties.  In the event the
interest of Buyer under this Agreement is assigned before Closing, then the
assignor shall remain liable for the obligations of Buyer under this Agreement;
provided, however, that if the Closing occurs, then upon the later to occur of
the assignment or such Closing, such assignor shall thereupon automatically be
released from any obligation or liability assumed by such assignee.  Buyer shall cause any assignee (other than an
affiliate of Buyer) to which it assigns this Agreement to (a) execute an
assignment and assumption in the form of Exhibit “T” or otherwise in form
reasonably satisfactory to Seller (which Seller and the assignor shall sign),
and (b) sign a confidentiality agreement in the form of Exhibit “U”, with such
changes thereto as may be reasonably requested by Buyer and reasonably approved
by Seller.

10.8         Notices.  Any notice which a party is required or may
desire to give the other party shall be in writing and may be delivered (1)
personally, (2) by United States registered or certified mail, postage prepaid,
(3) by Federal Express or other reputable courier service regularly providing
evidence of delivery (with charges paid by the party sending the notice), or
(4) by facsimile, provided that such telecopy shall be immediately followed by
delivery of such notice pursuant to clause (1), (2) or (3) above.  Any such notice to a party shall be addressed
at the respective address set forth below (subject to the right of a party to
designate a different address for itself by notice similarly given).

 23
 

 

 

	
   

  	
  To Buyer:

  
	
   

  	
   

  
	
   

  	
  c/o Blackstone Real Estate Advisors

  
	
   

  	
  345 Park Avenue

  
	
   

  	
  New York, NY 10154

  
	
   

  	
  Attention:

  	
  Mr. Gary M. Sumers

  
	
   

  	
  Office (gen.):

  	
  (212) 583-5813

  
	
   

  	
  Facsimile:

  	
  (212) 583-5726

  
	
   

  	
   

  
	
   

  	
  With Copy To:

  
	
   

  	
   

  
	
   

  	
  Pircher, Nichols & Meeks

  
	
   

  	
  1925 Century Park East, Suite 1700

  
	
   

  	
  Los Angeles, California 90067

  
	
   

  	
  Attention:   Real Estate Notices (JLB)

  
	
   

  	
  Telephone: (310) 201-8900

  
	
   

  	
  Telecopier: (310) 201-8922

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  To Seller:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  c/o Trizec Properties, Inc.

  
	
   

  	
  10 South Riverside Plaza

  
	
   

  	
  Suite 1100

  
	
   

  	
  Chicago, Illinois 60601

  
	
   

  	
  Attention:  Jean
  A. Dorans

  
	
   

  	
  Telephone No.  (312) 798-6007

  
	
   

  	
  Fax No.  (866) 300-8690

  
	
   

  	
   

  
	
   

  	
  With Copy To:

  
	
   

  	
   

  
	
   

  	
  DLA Piper US LLP

  
	
   

  	
  203 North Lasalle St.

  
	
   

  	
  Chicago, IL 60606

  
	
   

  	
  Attn.   James Beard

  
	
   

  	
  Telephone:  Phone:
  312.368.2169 Fax: 312.630.7379

  
	
   

  	
   

  
	
   

  	
  and

  
	
   

  	
   

  
	
   

  	
  Goodwin Proctor LLP

  
	
   

  	
  Exchange Place

  
	
   

  	
  Boston, Massachusetts 02109-2881

  
	
   

  	
  Attention:  Samuel
  L. Richardson, Esq.

  
	
   

  	
  Telecopier: (617) 227-8591

  
	
   

  	
  Telephone: (617) 570-1000

  
					

Service of any
such notice or other communications so made shall be deemed effective on the
day of actual delivery (whether accepted or refused) as evidenced by confirmed
answerback if by facsimile

 24
 

 

(provided that if
any notice or other communication to be delivered by facsimile cannot be
transmitted because of a problem affecting the receiving party’s facsimile
machine, the deadline for receiving such notice or other communication shall be
extended through the next business day), as shown by the addressee’s return
receipt if by certified mail, and as confirmed by the courier service if by
courier; provided, however, that if such actual delivery occurs after 5:00 p.m.
(local time where received) or on a non-business day, then such notice or
demand so made shall be deemed effective on the first business day after the
day of actual delivery.  Except as
provided in Section 4.2.1, no communications via electronic mail shall be
effective to give any notice, request, direction, demand, consent, waiver, approval
or other communications hereunder.

10.9         Third Parties.  Except as provided in Section 8.2, nothing in
this Agreement, whether expressed or implied, is intended to confer any rights
or remedies under or by reason of this Agreement on any person other than the
parties hereto and their respective successors and assigns, and nothing in this
Agreement is intended to relieve or discharge the obligation or liability of
any third persons to any party to this Agreement, and no provision shall give
any third parties any right of subrogation or action over or against any party
to this Agreement.

10.10       Legal Costs.  The parties hereto agree that they shall pay
directly any and all legal costs which they have incurred on their own behalf
in the preparation of this Agreement, all deeds and other agreements pertaining
to this transaction and that such legal costs shall not be part of the closing
costs.  In addition, if either Buyer or
Seller brings any suit or other proceeding, including an arbitration
proceeding, with respect to the subject matter or the enforcement of this
Agreement, the prevailing party (as determined by the court, agency, arbitrator
or other authority before which such suit or proceeding is commenced), in
addition to such other relief as may be awarded, shall be entitled to recover
reasonable attorneys’ fees, expenses and costs of investigation actually
incurred.  The foregoing includes
attorneys’ fees, expenses and costs of investigation (including those incurred
in appellate proceedings), costs incurred in establishing the right to indemnification,
or in any action or participation in, or in connection with, any case or
proceeding under Chapter 7, 11 or 13 of the Bankruptcy Code (11 United States
Code Sections 101 et seq.), or any successor statutes.  The provisions of this Section 10.10 shall
survive any termination of this Agreement.

10.11       Further Instruments.  Each party will, whenever and as often as it
shall be requested so to do by the other, cause to be executed, acknowledged or
delivered any and all such further instruments and documents as may be
necessary or proper, in the reasonable opinion of the requesting party, in
order to carry out the intent and purpose of this Agreement so long as the same
imposes no material liability on such party.

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

10.13       Press Releases.  No press release or other public disclosure
regarding the terms of this Agreement or the transaction contemplated hereby
shall be made without the prior written consent of Buyer and Seller.  However, either party shall have the right to
make public

 25
 

 

disclosures required by
(1) law (but only if such party gives the other party reasonable notice and an
opportunity to retain a restraining order or take other similar protective
actions) or (2) the rules and regulations of a securities exchange.  Notwithstanding the foregoing provisions, however,
Seller and Buyer agree that (A) either party shall be permitted to make such
disclosures as may be recommended by such party’s legal counsel in order to
comply with all financial reporting, securities laws and similar legal
requirements applicable to such party; and (B) either party shall be permitted
to issue a press release after Closing announcing the sale and acquisition of
the Property without prior written approval of the other party, so long as the
other party (or any of its affiliates) is not identified in such release and
the release does not disclose the economic terms of this Agreement.

10.14       Tax Deferred Exchange.  Seller or an affiliate of Seller may desire
to dispose of the Property through a tax deferred exchange which qualifies for
non-recognition of gain under Section 1031 of the Internal Revenue
Code.  Buyer shall cooperate with Seller
in attempting to effectuate such exchange, including the execution of such
documentation as may be reasonably necessary to effect such exchange, provided
that (i) Buyer shall not incur any additional liability in connection with an
exchange for the benefit of Seller, (ii) Buyer shall not be obligated to take
title to any real property (other than the Property), (iii) the Closing Date
shall not be extended as a result of the exchange, without Buyer’s prior
written consent, and (iv) any additional costs and charges attributable to the
exchange, including attorneys’ fees, brokers’ commissions and other
transaction-related expenses shall be paid for by Seller.  Seller shall indemnify and hold Buyer
harmless from and against all claims, demands, actions, proceedings, damages,
losses, liabilities, costs and expenses resulting from such tax deferred
exchange by Seller.  Seller may
substitute an intermediary (“Intermediary”)
to act in place of Seller as the seller of the Property.  Buyer shall accept the Property and all other
required performance from Intermediary and render its performance of all of its
obligations to Intermediary.  Performance
by Intermediary will be treated as performance by Seller.  Seller unconditionally guarantees the full
and timely performance by Intermediary of each and every one of the
representations, warranties, covenants, indemnities, obligations and
undertakings of Intermediary.  As guarantor,
Seller shall be treated as a primary obligor with respect to these
representations, warranties, covenants, indemnities, obligations and
undertakings, and, in the event of breach, Buyer may proceed directly against
Seller, subject to the terms and conditions of this Agreement, on this
guarantee without the need to join Intermediary as a party to any action
against Seller.  Seller unconditionally
waives any defense that it might have as guarantor that it would not have if it
had made or undertaken these representations, warranties, covenants,
indemnities, obligations and undertakings directly.  In the event of the breach of any
representations, warranties, covenants, obligations and undertakings by Seller
or Intermediary or in the event of any claim upon any indemnity of Seller or
Intermediary (whether the representation, warranty, covenant, indemnity,
obligation or undertaking is express or implied), Buyer’s exclusive recourse
shall be against Seller in accordance with the terms of this Agreement and
Buyer shall have no recourse of any type against Intermediary arising from this
transaction.

10.15       Anti-Terrorism Law.  Each of Seller and Buyer hereby represents
and warrants to the other that:

10.15.1    Neither
it nor, to its knowledge, its affiliates, is in violation of any laws relating
to terrorism, money laundering or the Uniting and Strengthening America by
Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Action
of 2001, Public Law 107-56 and Executive Order No. 13224 (Blocking
Property and Prohibiting Transactions with Persons Who

 26
 

 

Commit, Threaten to Commit, or Support Terrorism) (the “Executive Order”) (collectively, the “Anti-Money Laundering and Anti-Terrorism Laws”).

10.15.2    Neither
it nor, to its knowledge, its affiliates, is acting, directly or indirectly, on
behalf of terrorists, terrorist organizations or narcotics traffickers,
including those persons or entities that appear on the Annex to the Executive
Order, or are included on any relevant lists maintained by the Office of
Foreign Assets Control of U.S. Department of Treasury, U.S. Department of
State, or other U.S. government agencies, all as may be amended from time to
time.

10.15.3    Neither
it nor, to its knowledge, its affiliates or, without inquiry, any of its brokers
or other agents, in any capacity in connection with the purchase of the
Property (A) conducts any business or engages in making or receiving any
contribution of funds, goods or services to or for the benefit of any person
included in the lists set forth in the preceding paragraph, (B) deals in, or
otherwise engages in any transaction relating to, any property or interests in
property blocked pursuant to the Executive Order, or (C) engages in or
conspires to engage in any transaction that evades or avoids, or has the
purpose of evading or avoiding, or attempts to violate, any of the prohibitions
set forth in any Anti-Money Laundering and Anti-Terrorism Laws.

10.15.4    It
understands and acknowledges that the other may become subject to further
anti-money laundering regulations, and agrees to execute instruments, provide
information, or perform any other acts as may reasonably be requested by the
other, for the purpose of:  (A) carrying
out due diligence as may be required by applicable law to establish its identity
and source of funds; (B) maintaining records of such identities and sources of
funds, or verifications or certifications as to the same; and (C) taking any
other actions as may be required to comply with and remain in compliance with
anti-money laundering regulations applicable to the other.

10.15.5    Neither
it, nor any person controlling or controlled by it, is a country, territory,
individual or entity named on a “Government List” (as hereinafter defined), and
the monies used in connection with this Agreement and amounts committed with
respect thereto, were not and are not derived from any activities that
contravene any applicable anti-money laundering or anti-bribery
laws and regulations (including funds being derived from any person, entity,
country or territory on a Government List or engaged in any unlawful activity
defined under Title 18 of the United States Code, Section 1956(c)(7)).

10.15.6    “Government List” means any of (i) the two
lists maintained by the United States Department of Commerce (Denied Persons
and Entities), (ii) the list maintained by the United States Department of
Treasury (Specially Designated Nationals and Blocked Persons), and (iii) the
two lists maintained by the United States Department of State (Terrorist
Organizations and Debarred Parties).

10.16       Counterparts.  This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original, but all of which shall
constitute one and the same document.

10.17       Effectiveness.  In no event shall any draft of this Agreement
create any obligation or liability, it being understood that this Agreement
shall be effective and binding only when a counterpart hereof has been executed
and delivered by each party hereto.

 27
 

 

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

	
   

  	
  SELLER:

  
	
   

  	
   

  
	
   

  	
  TRIZEC HOLDINGS, LLC,

  
	
   

  	
  a Delaware limited liability company

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jean Dorans

  
	
   

  	
  Name:

  	
  Jean Dorans

  
	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  BUYER:

  
	
   

  	
   

  
	
   

  	
  BRE/TZ PROPERTIES L.L.C.,

  
	
   

  	
  a Delaware limited liability company

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Anthony Myers

  
	
   

  	
  Name:

  	
  Anthony Myers

  
	
   

  	
  Title:

  	
  Managing Director

  
				

 

 28

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