Document:

Exhibit 10.3

 

CONTRIBUTION
AGREEMENT

(RPT 1425)

 

THIS
CONTRIBUTION AGREEMENT (RPT 1425) (this “Agreement”) is
entered into as of September 23, 2005 by and among Republic Property
Trust, a Maryland real estate investment trust (“Republic”),
Republic Property Limited Partnership, a Delaware limited partnership (the “Operating Partnership”), and the partners of RPT 1425
Investors L.P., a Delaware limited partnership (“RPT 1425”),
listed on Exhibit A hereto (each a “Partner”
and, collectively, the “Partners”), which
Partners are represented by RPT 1425
(General Partner) LLC, a Delaware limited liability company (the “General Partner”), as the attorney-in-fact
and agent of each Partner.

 

WHEREAS, in
connection with the underwritten initial public offering (the “IPO”) of the common shares of beneficial interest, par value
$.01 per share, of Republic (the “REIT Shares”),
Republic, the Operating Partnership and their affiliates will complete a series
of related transactions (collectively with the IPO, the “IPO Transactions”);

 

WHEREAS, each
Partner currently owns the interests in RPT 1425, which, as of the date hereof,
are set forth opposite their names on Exhibit A
hereto (the “Interests”);

 

WHEREAS, in
connection with the IPO Transactions, each Partner desires to contribute to the
Operating Partnership, and the Operating Partnership desires to acquire, all of
such Partner’s right, title and interest in and to the Interests in exchange
for either (i) Class A units of limited partnership interest in the
Operating Partnership (the “Units”), (ii) REIT
Shares, (iii) an amount in United States dollars (“Cash”);
or (iv) a combination of REIT Shares and Cash, on the terms and subject to
the conditions set forth herein;

 

WHEREAS, the
Limited Partnership Agreement for RPT 1425 (the “RPT 1425
Agreement”) grants to the General Partner the right to cause the
Partners to sell, transfer, contribute or otherwise dispose of their respective
Interests in connection with the IPO Transactions, including pursuant to this
Agreement; and

 

WHEREAS,
pursuant to the RPT 1425 Agreement, each Partner has appointed the General
Partner as his, her or its true and lawful attorney-in-fact and agent with full
power and authority to make, execute, sign, acknowledge, deliver, file and
record any and all assignments and conveyances of the Interests.

 

NOW THEREFORE,
in consideration of the foregoing and the mutual covenants and conditions set
forth herein and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, Republic, the Operating
Partnership, the Partners and the General Partner agree as follows:

 

 

ARTICLE I:
CONTRIBUTION OF INTERESTS

 

1.1           Contribution.

 

(a)   Subject
to the terms and conditions hereof, each Partner agrees to contribute or
otherwise transfer to the Operating Partnership, and the Operating Partnership
agrees to acquire and accept from such Partner, at the Closing (as hereinafter
defined), all of such Partner’s right, title and interest in and to the
Interests.

 

(b)   Subject
to the terms and conditions hereof, at the Closing, the Operating Partnership
agrees to assume from the Partners and thereafter pay, honor, discharge and
perform, in accordance with their respective terms, all of the liabilities and
obligations of the Partners associated with the Interests, to the extent any
such liabilities or obligations exist (the “Assumed
Liabilities”).

 

(c)   The
Operating Partnership reserves the right not to acquire the Interests and to
terminate this Agreement at any time if it determines, in its sole and absolute
discretion, that the purchase of the Interests pursuant to this Agreement would
not be appropriate for, or in the best interests of, the Operating Partnership.

 

1.2           Issuance of Units and REIT Shares (or
Payment of Cash).

 

(a)           Except
as provided in Section 1.2(c) hereto and subject to a reduction
pursuant to Section 1.2(d) hereof, each Partner listed on Exhibit A
hereto with a residency of the United States (a “U.S. Partner”)
shall receive a number of Units (rounded to the nearest whole Unit) in exchange
for his, her or its Interests equal to (i) such U.S. Partner’s
Consideration Amount (as defined on Exhibit B hereto) divided by (ii) the
initial public offering price of a REIT Share (“Republic IPO
Price”), in a transaction intended to qualify for nonrecognition of
gain to the U.S. Partners pursuant to Section 721 of the Internal Revenue
Code of 1986, as amended (the “Code”).  The Units that a U.S. Partner is entitled to
receive pursuant to this Section 1.2(a) are referred to as the “Unit Consideration.” 
The rights of U.S. Partners as holders of the Units, as of the Closing, will
be as set forth in the Amended and Restated Agreement of Limited Partnership of
the Operating Partnership (the “Partnership Agreement”).

 

(b)           Except
as provided in Section 1.2(c) hereto and subject to a reduction pursuant
to Section 1.2(d) hereof, each Partner that is not a U.S. Partner (a “Non-U.S. Partner”) may make an election to receive either (i) a
number of REIT Shares (rounded to the nearest whole REIT Share) in exchange for
his, her or its Interests equal to (A) such Non-U.S. Partner’s
Consideration Amount (as defined on Exhibit B hereto) divided by (B) the
Republic IPO Price; (ii) Cash in an amount equal to the product of (a) 91.5%
and (b) such Non-U.S. Partner’s
Consideration 

 

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Amount; or (iii) a combination of
REIT Shares and Cash to be selected by the Non-U.S. Partner with such Non-U.S.
Partner’s Consideration Amount allocated between (i) and (ii) of this
Section 1.2(b).  The REIT Shares
that a Non-U.S. Partner is entitled to receive pursuant to this Section 1.2(b) are
referred to as the “REIT Share Consideration.”  The Cash that a Partner is entitled to
receive pursuant to this Section 1.2(b) and Section 1.2(c) below
is referred to as the “Cash Consideration.”

 

(c)           In the event that any
Partner (i) does not complete an
investor questionnaire, (the “Investor Questionnaire”)
a form of which was attached as an exhibit to the Private Placement
Memorandum (the “Memorandum”) previously delivered
by the Operating Partnership and Republic to each Partner on July 22, 2005
in connection with this Agreement and
return such Investor Questionnaire to Republic by the deadline set forth in the
Memorandum; (ii) cannot make the representations included in the Investor
Questionnaire which are required to be made in order to establish an exemption
from the registration requirements under the U.S. securities laws with respect
to the issuance of Units or REIT Shares, as applicable, pursuant to this
Agreement; or (iii) with respect to a U.S. Partner, fails to provide the
certification required in Section 6.2(c), such Partner will receive Cash
in an amount equal to the product of (i) such Partner’s Consideration
Amount multiplied by (ii) 91.5%, subject to a reduction pursuant to
Section 1.2(d) hereof, and no
Units or REIT Shares, as applicable, will be issued to any such Partner.

 

(d)           All
consideration that a Partner is entitled to receive pursuant to this Agreement
shall be reduced by any withholding obligation imposed on the Operating
Partnership under the Internal Revenue Code of 1986, as amended (the “Code”), including, without limitation, any withholding
obligations under Sections 1445 and 3406 of the Code as determined by the Operating
Partnership in its sole and absolute discretion.

 

(e)           The
Operating Partnership will pay all transfer taxes imposed on the parties to
this Agreement in connection with the transfer and sale of Interests pursuant
to this Agreement (the “Transfer Taxes”).

 

(f)            At
the Closing, (i) the Operating Partnership shall issue the Unit
Consideration to the U.S. Partners entitled to receive Units (as determined
pursuant to Section 1.2(a) above); (ii) Republic will contribute
to the Operating Partnership the number of REIT Shares necessary for payment by
the Operating Partnership of the REIT Share Consideration in exchange for a
like number of Units; (iii) Republic will contribute to the Operating
Partnership an amount of Cash equal to the sum of the amount of Cash necessary
for payment by the Operating Partnership of the (a) Cash Consideration, (b) Transfer
Taxes and (c) any withholding obligation described in Section 1.2(d) in
exchange for a like number of Units; (iv) the Operating Partnership shall
deliver the REIT Share Consideration to the Non-U.S. Partners entitled to
receive REIT Shares (as determined pursuant to 

 

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Section 1.2(b) above);
and (v) the Operating Partnership shall deliver the Cash Consideration to
each Partner entitled to receive Cash (as determined pursuant to Sections 1.2(b) and
1.2(c)).  The name of each U.S. Partner
receiving Units pursuant to this Agreement and the number of Units issued to
such U.S. Partner at the Closing shall be recorded in the books and records of
the Operating Partnership.  The name of
each Non-U.S. Partner receiving REIT Shares pursuant to this Agreement and the
number of REIT Shares issued to such Non-U.S. Partner at the Closing shall be
recorded in the shareholder register of Republic.

 

1.3           Admission as a Limited Partner.  Upon execution and
delivery of the Limited Partner Acceptance to the Partnership Agreement,
attached hereto as Exhibit D
(the “Limited Partner Acceptance”), by each
U.S. Partner entitled to receive Units pursuant to Section 1.2(a), and
subject to the completion of the Closing, each such U.S. Partner shall be
admitted as a limited partner of the Operating Partnership and, as such, shall
be subject to, and bound by, the Partnership Agreement, including all the terms
and conditions thereof, and the power of attorney granted therein.

 

ARTICLE II:
REPRESENTATIONS, WARRANTIES AND COVENANTS OF PARTNERS

 

As a material
inducement to Republic and the Operating Partnership to enter into this
Agreement and to consummate the transactions contemplated hereby, each Partner,
severally and not jointly, hereby makes to Republic and the Operating
Partnership, as to itself, each of the representations, warranties and covenants
set forth in this Article II.  The
representations and warranties set forth in this Article II are true and
correct as of the date hereof.

 

2.1           Title
to the Interests.  Each Partner owns,
directly or indirectly, and at the Closing will own beneficially and of record,
free and clear of any claim, lien (including tax liens), option, charge,
security interest, mortgage, deed of trust, encumbrance, rights of assignment,
purchase rights or other rights of any nature whatsoever of any third party,
and has or will have at the Closing full power and authority to convey, the
Interests and, upon delivery of an assignment by such Partner conveying such
Interests against payment of consideration for such Interests as herein
provided, the Operating Partnership (or its designee) will acquire good and
valid title thereto.

 

2.2           Authority.  Each Partner has full right, authority, power
and capacity (a) to enter into this Agreement and each agreement, document
and instrument to be executed and delivered by or on behalf of such Partner
pursuant to this Agreement; (b) to carry out the transactions contemplated
hereby and thereby; and (c) to transfer, sell and deliver all of its
Interests to the Operating Partnership (or its designee) in accordance with
this Agreement.  This Agreement and each
agreement, document and instrument executed and delivered by or on behalf of

 

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such Partner pursuant to this
Agreement constitutes, or when executed and delivered will constitute, the
legal, valid and binding obligation of such Partner, each enforceable in
accordance with its respective terms.

 

2.4           Noncontravention.  Neither the entry into nor the performance
of, or compliance with, this Agreement by each Partner has resulted, or will
result, in any violation of, or default under, or result in the acceleration
of, any obligation under its governing documents, or any material mortgage,
indenture, lien agreement, note, contract, permit, judgment, decree, order,
restrictive covenant, statute, rule, or regulation applicable to such Partner.

 

2.5           Litigation.  There is no (a) litigation or
proceeding, either judicial or administrative, pending or, to each Partner’s
knowledge, threatened, affecting all or any portion of such Partner’s Interests
and (b) outstanding order, writ, injunction or decree of any court,
government, governmental entity or authority or arbitration against or
affecting all or any portion of such Partner’s Interests, which in the case of (a) and
(b) hereof, would impair such Partner’s ability to enter into and perform
all of such Partner’s obligations under this Agreement.

 

2.6           Status
as a United States Person.  Each U.S.
Partner represents and warrants that it is not a foreign person (nor is it a “disregarded
entity” held by a foreign person) within the meaning of Section 1445 of
the Code.

 

2.7           No
Insolvency Proceedings.  No
attachments, execution proceedings, assignments for the benefit of creditors,
insolvency, bankruptcy, reorganization or other proceedings are pending or, to each
Partner’s knowledge, threatened against such Partner, nor are any such
proceedings contemplated by such Partner.

 

2.8           No
Brokers.  No Partner has entered
into, and each Partner covenants that it will not enter into, any agreement,
arrangement or understanding with any person or firm which will result in the
obligation of the Operating Partnership or Republic to pay any finder’s fee,
brokerage commission or similar payment in connection with the transactions
contemplated hereby (other than underwriting fees paid in connection with the
IPO).

 

2.9           Consents.
 Except as may otherwise be set forth in
this Agreement, each consent, approval, authorization, order, license,
certificate, permit, registration, designation, or filing by or with any
governmental agency or third party necessary for the execution, delivery, and
performance of this Agreement or the transactions contemplated hereby by each
Partner has been obtained or will be obtained on or before the Closing.

 

2.10         Securities
Law Matters; Transfer Restrictions. Each Partner acknowledges that (i) Republic
and the Operating Partnership intend the offer and issuance of any Units or
REIT Shares to any Partner to be exempt from registration under the Securities
Act of 1933, as amended (the “Securities Act”),
and applicable 

 

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state securities laws by virtue
of either (A) the status of such Partner as a “Non-U.S.
Person” within the meaning of Rule 902(k) of Regulation S (“Regulation S”) under the Securities Act, and acquisition of
the REIT Shares by such Partner in an “offshore transaction”
within the meaning of, and pursuant to, Regulation S, or
(B) the status of such Partner as an “accredited investor”
within the meaning of Rule 501(a) of Regulation D under the
Securities Act (“Regulation D”) acquiring the Units
in a transaction exempt from registration pursuant to Rule 506 of
Regulation D, and (ii) in issuing any Units or REIT Shares pursuant to the
terms of this Agreement, Republic and the Operating Partnership are relying on
the representations made by such Partner as set forth in the Investor
Questionnaire, such representations to be substantially in the form as set
forth on Exhibit C attached hereto.

 

2.11         Reliance.  Each Partner acknowledges that Republic and
the Operating Partnership may rely upon the representations and warranties in
this Article II in determining whether to enter into this Agreement.  Each Partner agrees, severally and not
jointly, to indemnify, defend and hold harmless the Operating Partnership,
Republic and the officers, directors and affiliates thereof, and any employees
or agents of any of the foregoing, against any and all loss, liability, claim,
damage or expense whatsoever (including, but not limited to, any and all
expenses, including attorneys’ fees, reasonably incurred in investigating,
preparing or defending against any claim or litigation commenced or threatened)
due to or arising out of a breach of any such representations or warranties as
it relates to such Partner; provided, however,
the indemnification obligation of the Partners hereunder is limited in the case
of each Partner to the value of the consideration such Partner will receive in
connection with such Partner’s sale of Interests pursuant to this Agreement.

 

ARTICLE III:  REPRESENTATIONS AND WARRANTIES OF REPUBLIC
AND THE OPERATING PARTNERSHIP

 

As a material
inducement to the Partners to enter into this Agreement and to consummate the
transactions contemplated hereby, Republic and the Operating Partnership hereby
make to the Partners each of the representations, warranties and covenants set
forth in this Article III.  The
representations and warranties set forth in this Article III are true and
correct as of the date hereof.

 

3.1          Organization
and Standing of the Operating Partnership. 
The Operating Partnership is a limited partnership duly organized,
validly existing and in good standing under Delaware law, and has the requisite
partnership power and authority to own and operate its assets, to carry on its
business as currently conducted, to execute and deliver this Agreement and to
carry out the transactions contemplated hereby. 
The Operating Partnership is duly qualified to conduct business as a
foreign partnership where necessary and is in good standing in the states in
which it is so qualified.

 

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3.2           Organization
and Standing of Republic.  Republic
is a real estate investment trust organized, validly existing and in good
standing under Maryland law, and has the requisite power and authority to own
and operate its assets, to carry on its business as currently conducted, to
execute and deliver this Agreement and to carry out the transactions
contemplated hereby.  Republic is duly
qualified to conduct business as a foreign real estate investment trust where
necessary and is in good standing in the states in which it is so qualified.

 

3.3.          Authority.  Each of Republic and the Operating
Partnership has full right, authority, power and capacity (a) to enter
into this Agreement and each agreement, document and instrument to be executed
and delivered by or on behalf of Republic and the Operating Partnership
pursuant to this Agreement; (b) to carry out the transactions contemplated
hereby and thereby; and (c) to transfer, sell and deliver the Units and
the REIT Shares to Partners in accordance with this Agreement.  This Agreement and each agreement, document
and instrument executed and delivered by or on behalf of Republic and the
Operating Partnership pursuant to this Agreement constitutes, or when executed
and delivered will constitute, the legal, valid and binding obligation of
Republic and the Operating Partnership, each enforceable in accordance with its
respective terms.

 

3.4           Noncontravention.  Neither the entry into nor the performance
of, or compliance with, this Agreement by Republic and the Operating
Partnership has resulted, or will result, in any violation of, or default
under, or result in the acceleration of, any obligation under either of their
governing documents, or any material mortgage, indenture, lien agreement, note,
contract, permit, judgment, decree, order, restrictive covenant, statute, rule,
or regulation applicable to Republic or the Operating Partnership.

 

3.5.          Litigation.  There is no (a) litigation or
proceeding, either judicial or administrative, pending or, to Republic’s or the
Operating Partnership’s knowledge, threatened, affecting all or any portion of
the Units or the REIT Shares being issued hereunder and (b) outstanding
order, writ, injunction or decree of any court, government, governmental entity
or authority or arbitration against or affecting all or any portion of the REIT
Shares or the Units, which in the case of (a) and (b) hereof, would
impair Republic’s or the Operating Partnership’s ability to enter into and
perform all of Republic’s or the Operating Partnership’s obligations under this
Agreement.

 

3.6           Units
Validly Issued.  The Units, when
issued, will have been duly and validly authorized and issued, free of any
preemptive or similar rights, without any obligation to restore capital except as
required by the Delaware Revised Uniform Limited Partnership Act or as agreed
between the Operating Partnership and any limited partner in the Operating
Partnership.

 

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3.7           REIT
Shares Validly Issued.  The REIT
Shares, when issued, will have been duly and validly authorized and issued,
free of any preemptive or similar rights.

 

3.8           No
Brokers.  Neither of Republic or the
Operating Partnership has entered into, and each covenants that it will not
enter into, any agreement, arrangement or understanding with any person or firm
which will result in the obligation of any Partner to pay any finder’s fee,
brokerage commission or similar payment in connection with the transactions
contemplated hereby (other than underwriting fees paid in connection with the
IPO).

 

3.9           Consents.
Except as may otherwise be set forth in this Agreement, each consent, approval,
authorization, order, license, certificate, permit, registration, designation,
or filing by or with any governmental agency or body necessary for the
execution, delivery, and performance of this Agreement or the transactions
contemplated hereby by Republic and the Operating Partnership has been obtained
or will be obtained on or before the Closing.

 

3.10         Reliance.
 Republic and the Operating Partnership
acknowledge that each Partner may rely upon the representations and warranties
in this Article III in determining whether to enter into this
Agreement.  Republic and the Operating
Partnership agree to indemnify, defend and hold harmless each Partner and the
officers, directors and affiliates thereof, and any employees or agents of any
of the foregoing, against any and all loss, liability, claim, damage or expense
whatsoever (including, but not limited to, any and all expenses, including
attorneys’ fees, reasonably incurred in investigating, preparing or defending
against any claim or litigation commenced or threatened) due to or arising out
of a breach of any such representations or warranties.

 

ARTICLE IV:
COVENANTS

 

4.1.          Restrictions on
Transfer.    From the date hereof through
the Closing, the Partners shall not, without the prior written consent of the
Operating Partnership:

 

(a)           Sell, transfer
(or agree to sell or transfer) or otherwise dispose of all or any portion of
their Interests;

 

(b)           Mortgage,
pledge or encumber (or permit to become encumbered) all or any portion of their
Interests;

 

(c)           Amend, modify
or terminate any material agreements or other instruments relating to their
Interests; or

 

(d)           Cause RPT 1425
to make any distributions.

 

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4.2           Tax Information.  From the date hereof and subsequent to the
Closing, each Partner agrees to provide the Operating Partnership with such tax
information relating to the Interests that is in such Partner’s possession or
control and that is reasonably requested by the Operating Partnership and not
otherwise in the Operating Partnership’s possession or control and to cooperate
with the Operating Partnership in connection therewith.

 

4.3           Section 704(c) Allocations
and Methods.  The Operating
Partnership shall elect to use the “traditional method” set forth in Section 1.704-3(b) of
the Treasury Regulations with respect to the property currently held indirectly
by RPT 1425 and any replacement property (the “Property”)
with a provision for a “curative” allocation of gain to the Partners (or their
successors in interest) upon a taxable disposition of the Property in an amount
sufficient to eliminate any remaining disparities between the book items and
tax items of any other partners of the Operating Partnership with respect to
the Property attributable to the
application of the “ceiling rule” under the “traditional method.”

 

ARTICLE V:
CONDITIONS TO CLOSING

 

5.1           Conditions
to the Obligation of Republic and the Operating Partnership to Close.  The obligation of Republic and the Operating
Partnership to consummate the Closing is subject to the fulfillment, at or
prior to the Closing, of the following conditions (unless such conditions are
waived in writing by Republic and the Operating Partnership):

 

(a)           IPO
Transactions.  The other IPO
Transactions shall have occurred (or shall be occurring substantially
simultaneously with the Closing).

 

(b)           Representations
and Warranties.  The representations
and warranties made by the Partners pursuant to this Agreement shall be true
and correct in all material respects when made, and on and as of the Closing,
as though such representations and warranties were made on the Closing.

 

(c)           Performance.  Each Partner shall have performed and
complied with all agreements and covenants that such Partner is required to
perform or comply with pursuant to this Agreement prior to the Closing in all
material respects.

 

(d)           Legal
Proceedings.  No order, statute,
rule, regulation, executive order, injunction, stay, decree, or restraining
order shall have been enacted, entered, promulgated or enforced by any court of
competent jurisdiction or governmental entity that prohibits the consummation
of the transactions contemplated hereby, and no litigation or governmental
proceeding seeking such an order shall be pending or threatened.

 

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(e)           Consents
and Approvals.  All necessary
consents of governmental and private parties to effect the transactions
contemplated by this Agreement shall have been obtained.

 

5.2           Conditions
to Partners’ Obligation to Close. 
The obligation of each Partner to consummate the Closing is subject to
the fulfillment, at or prior to the Closing, of the following conditions
(unless such conditions are waived in writing by such Partner):

 

(a)           Representation
and Warranties.  The representations,
warranties and covenants of Republic and the Operating Partnership contained in
this Agreement shall be true and correct as of the Closing.

 

(b)           Performance.  Republic and the Operating Partnership shall
have performed and complied with all agreements and covenants that they each
are required to perform or comply with pursuant to this Agreement prior to the
Closing in all material respects.

 

(c)           Legal
Proceedings. No order, statute, rule, regulation, executive order,
injunction, stay, decree, or restraining order shall have been enacted,
entered, promulgated or enforced by any court of competent jurisdiction or
governmental entity that prohibits the consummation of the transactions
contemplated hereby, and no litigation or governmental proceeding seeking such
an order shall be pending or threatened.

 

(d)           Consents
and Approvals.  All necessary
consents of governmental and private parties to effect the transactions
contemplated by this Agreement shall have been obtained.

 

5.3           Further
Assurances.  Each of the parties
hereto shall execute and deliver all such other and further instruments and
documents and take or cause to be taken all such other and further actions any
other party may reasonably request in order to effect the transactions
contemplated by this Agreement.

 

ARTICLE VI:
CLOSING

 

6.1           Closing.  The closing hereunder (the “Closing”) shall occur on the same day as the closing of the
IPO, as close in time to the closing of the IPO as is reasonably practicable
under the circumstances.

 

6.2           Closing
Deliveries by U.S. Partners Receiving Units.  At the Closing, each U.S. Partner receiving
Units in accordance with this Agreement shall deliver to the Operating
Partnership:

 

(a)           a
duly executed Assignment and Assumption Agreement, substantially in the form
attached hereto as Exhibit E (“Assignment Agreement”),

 

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pursuant to which (i) such
U.S. Partner shall convey to the Operating Partnership or its designee title to
the Interests, and (ii) the Operating Partnership shall assume the Assumed
Liabilities;

 

(b)           a
duly executed Limited Partner Acceptance; and

 

(c)           a
certificate of non-foreign status substantially in the form attached as Exhibit F.

 

6.3          Closing
Deliveries by Non-U.S. Partners Receiving REIT Shares or Partners Receiving
Cash.  At the Closing, each Non-U.S.
Partner receiving REIT Shares and/or Cash and Partners receiving Cash, as the
case may be, pursuant to this Agreement shall deliver to the Operating
Partnership:

 

(a)           a
duly executed Assignment Agreement, pursuant to which (i) such Partner
shall convey to the Operating Partnership or its designee title to the Interests,
and (ii) the Operating Partnership shall assume the Assumed Liabilities.

 

6.4           Closing
Deliveries by the Operating Partnership and Republic.

 

(a)           At
the Closing, the Operating Partnership shall deliver to each Partner, as
applicable, the following:

 

(i)            the Unit
Consideration determined in accordance with Section 1.2(a);

 

(ii)           the REIT Share Consideration determined in
accordance with Section 1.2(b);

 

(iii)          the Cash Consideration determined in
accordance with Sections 1.2 (b) and 1.2(c);

 

(iv)          a
duly executed Assignment Agreement.

 

(b)           At
the Closing, Republic shall deliver to the Operating Partnership the REIT
Shares and Cash required to be delivered in accordance with Section 1.2(f).

 

ARTICLE VII:  MISCELLANEOUS

 

7.1           Term of Agreement.  Subject
to Section 1.1(c), this Agreement may be terminated by the mutual consent
of the parties at any time before the Closing. 
If the Closing does not occur by September 30, 2006, this
Agreement shall be deemed terminated and shall be of no further force and
effect and neither the Operating Partnership, Republic nor the Partners shall
have any further obligations pursuant to this Agreement except as specifically
set forth in this Agreement.

 

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7.2           Amendment;
Waiver.  Any amendment hereto shall
be effective only if signed by all parties hereto.  No waiver of any provisions of this Agreement
shall be valid unless in writing and signed by the party against whom
enforcement is sought.

 

7.3           Entire
Agreement; Counterparts; Applicable Law. 
This Agreement (a) shall, together with the Partnership Agreement
and the RPT 1425 Agreement, constitute the entire agreement and supersedes all
prior agreements and understandings, both written and oral, among the parties
with respect to the subject matter hereof, (b) may be executed in one or
more counterparts, each of which will be deemed an original and all of which
shall constitute one and the same instrument, and (c) shall be governed in
all respects, including validity, interpretation and effect, by the laws of the
State of Delaware without giving effect to the conflict of law provisions
thereof.

 

7.4           Assignability.  This Agreement shall be binding upon, and
shall be enforceable by and inure to the benefit of, the parties hereto and
their respective successors and assigns; provided, however,
that this Agreement may not be assigned (except by operation of law) by any
party without the prior written consent of the other party, and any attempted
assignment without such consent shall be void and of no effect.

 

7.5           Severability.  If any provision of this Agreement, or the
application thereof, is for any reason held to any extent to be invalid or
unenforceable, the remainder of this Agreement and application of such
provision to other persons or circumstances will be interpreted so as
reasonably to effect the intent of the parties hereto.

 

7.6           Equitable
Remedies.  The parties hereto agree
that irreparable damage would occur if any provision of this Agreement was not
performed in accordance with its specific terms or was otherwise breached.  It is accordingly agreed that the parties
shall be entitled to an injunction or injunctions to prevent breaches of this
Agreement and to enforce specifically the terms and provisions hereof in any
federal or state court located in the State of Delaware (as to which the
parties agree to submit to jurisdiction for the purposes of such action), this
being in addition to any other remedy to which they are entitled at law or in
equity.

 

7.7           Survival.  It is the express intention and agreement of
the parties hereto that the representations, warranties and covenants of the parties
set forth in this Agreement shall survive the consummation of the transactions
contemplated hereby.

 

7.8           Third Party Beneficiary.  Except as specifically set forth in this
Agreement, no provision of this Agreement is intended, nor shall it be
interpreted, to provide or create any third party beneficiary rights or other
rights of any kind in 

 

12

 

any customer, affiliate,
stockholder, partner, member, director, officer, or employee of any party to
this Agreement or any other person or entity.

 

 

[Remainder of page intentionally left blank]

 

13

 

IN WITNESS
WHEREOF, each of the parties hereto has executed and delivered this Agreement,
or caused the Agreement to be duly executed and delivered on its behalf, as of
the date first set forth above.

 

 

	
   

  	
  Republic
  Property Trust

  
	
   

  	
   

  
	
   

  	
  By:

  	
                    /s/
  Mark R. Keller

  	
   

  
	
   

  	
  Name: Mark
  R. Keller

  
	
   

  	
  Title: Chief
  Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Republic
  Property Limited Partnership

  
	
   

  	
   

  
	
   

  	
  By: Republic
  Property Trust, its General

  Partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
                    /s/
  Mark R. Keller

  	
   

  
	
   

  	
  Name: Mark
  R. Keller

  
	
   

  	
  Title: Chief
  Executive Officer

  

 

 

	
  Partners
  of RPT 1425 Investors L.P.

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Bowman Brown

  	
   

  	
  **

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Breckenridge
  Finance

  	
   

  	
  **

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Cabana
  Pacific

  	
   

  	
  **

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Camay Trust

  	
   

  	
  **

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Citco Global
  Custody N.V.

  	
   

  	
  **

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Clearwater
  Investments

  	
   

  	
  **

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Colville
  International Ltd.

  	
   

  	
  **

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Dicara
  Limited

  	
   

  	
  **

  	
   

  

 

 

	
  Greencay SA

  	
   

  	
  **

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Hopkins
  Participation Corporation

  	
   

  	
  **

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Hyun Sook
  Hamlyn

  	
   

  	
  **

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Inversiones
  2205

  	
   

  	
  **

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  KRIVCO/1425
  LLC

  	
   

  	
  **

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Laredo
  Development

  	
   

  	
  **

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  New Olympia
  Holdings

  	
   

  	
  **

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Seam Finance

  	
   

  	
  **

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Stonehouse
  Towers Inc.

  	
   

  	
  **

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Telford
  Associates Limited

  	
   

  	
  **

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Triton
  Overseas Ltd.

  	
   

  	
  **

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Unimar, Inc.

  	
   

  	
  **

  	
   

  

 

	
  ** Pursuant to a Power of Attorney

  
	
   

  	
  By:

  	
  RPT 1425 (General Partner) LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
                    /s/
  Mark R. Keller

  	
   

  
	
   

  	
  By:

  	
  Mark R.
  Keller

  
	
   

  	
   

  	
  Manager

  
	
   

  	
   

  	
  Attorney-in-Fact

  

 

 

[Signature Page to
Contribution Agreement (RPT 1425)]

 

15

 

EXHIBIT A

Schedule of Interests to be Contributed 

 

Schedule of Interests owned and to be contributed by each Partner:

 

	
  Name of Partner

  	
   

  	
  Residency

  	
   

  	
  Percent of

  Interests to be

  Contributed to

  the Operating

  Partnership

  	
   

  
	
  Bowman Brown

  	
   

  	
  United
  States

  	
   

  	
  1.0000

  	
  %

  
	
  Breckenridge
  Finance

  	
   

  	
  British
  Virgin Islands

  	
   

  	
  0.6667

  	
  %

  
	
  Cabana Pacific

  	
   

  	
  British
  Virgin Islands

  	
   

  	
  0.6667

  	
  %

  
	
  Calmay Trust

  	
   

  	
  Liechtenstein

  	
   

  	
  0.6667

  	
  %

  
	
  Citgo Global
  Custody N.V.

  	
   

  	
  Netherlands

  	
   

  	
  1.3333

  	
  %

  
	
  Clearwater
  Investments

  	
   

  	
  Panama

  	
   

  	
  0.6667

  	
  %

  
	
  Colville
  International Ltd.

  	
   

  	
  British
  Virgin Islands

  	
   

  	
  20.0000

  	
  %

  
	
  Dicara Ltd

  	
   

  	
  British
  Virgin Islands

  	
   

  	
  6.6667

  	
  %

  
	
  Greencay SA

  	
   

  	
  British
  Virgin Islands

  	
   

  	
  13.3333

  	
  %

  
	
  Hopkins
  Participation Corporation

  	
   

  	
  British
  Virgin Islands

  	
   

  	
  13.3333

  	
  %

  
	
  Hyun Sook
  Hamlyn

  	
   

  	
  Hong Kong

  	
   

  	
  0.6667

  	
  %

  
	
  Inversiones
  2205

  	
   

  	
  Panama

  	
   

  	
  2.3333

  	
  %

  
	
  KRIVCO/1425
  LLC

  	
   

  	
  U.S.

  	
   

  	
  13.3333

  	
  %

  
	
  Laredo
  Development

  	
   

  	
  British
  Virgin Islands

  	
   

  	
  13.3333

  	
  %

  
	
  New Olympia
  Holdings

  	
   

  	
  Grand Cayman

  	
   

  	
  1.3333

  	
  %

  
	
  RPT 1425
  (General Partner) LLC

  	
   

  	
  United
  States

  	
   

  	
  0

  	
  %

  
	
  Seam
  Finanace

  	
   

  	
  Panama

  	
   

  	
  0.6667

  	
  %

  
	
  Stonehouse
  Towers Inc.

  	
   

  	
  British
  Virgin Islands

  	
   

  	
  0.6667

  	
  %

  
	
  Telford
  Associates Limited

  	
   

  	
  British
  Virgin Islands

  	
   

  	
  6.6667

  	
  %

  
	
  Triton
  Overseas Ltd.

  	
   

  	
  Bahamas

  	
   

  	
  1.0000

  	
  %

  
	
  Unimar, Inc.

  	
   

  	
  United
  States

  	
   

  	
  1.6667

  	
  %

  

 

A-1

 

EXHIBIT B

 

Consideration
Amount

 

The Consideration Amount for a Partner is
equal to:

 

((PSP) *$18,000,000)

 

	
  PSP

  	
  =

  	
  Partner Share of Partnership Proceeds

  

 

“Partner Share
of Partnership Proceeds” means, at the time of the IPO, the percentage of
proceeds that would be distributed by RPT 1425 to such Partner if RPT 1425 were
to liquidate.

 

B-1Exhibit 10.4

 

CONTRIBUTION AGREEMENT

(RKB FUND)

 

THIS CONTRIBUTION AGREEMENT
(this “Agreement”) is entered into as of September 23,
2005 by and between RKB Washington Property Fund I L.P., a Delaware limited
partnership (“RKB”), Republic Property Limited Partnership,
a Delaware limited partnership (the “Operating Partnership”),
solely for purposes of Article II hereof, the Founders (as defined in Article II)
and, solely for purposes of Sections 2.10 and 2.11 hereof, the RKB Persons (as
defined in Section 2.10).

 

WHEREAS, in connection with
the initial public offering (the “IPO”) of the
common shares of beneficial interest of Republic Property Trust, a Maryland
real estate investment trust, RKB, the Operating Partnership and their
affiliates will complete a series of related transactions (collectively with
the IPO, the “IPO Transactions”);

 

WHEREAS, in connection with
the IPO Transactions, RKB desires to contribute to the Operating Partnership,
and the Operating Partnership desires to acquire, all of RKB’s right, title and
interest in and to the interests held by RKB listed on Exhibit A
hereto (the “Interests”) and any other assets
owned by RKB (the “Other Assets”) in
exchange for Class A units of limited partnership interest (the “Units”) in the Operating Partnership, on the terms and
subject to the conditions set forth herein; and

 

WHEREAS, the Investor
Committee of RKB has approved the execution and delivery of this Agreement by
RKB in accordance with the terms of the partnership agreement of RKB.

 

NOW THEREFORE, in
consideration of the foregoing and the mutual covenants and conditions set
forth herein and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

 

ARTICLE I:  CONTRIBUTION

 

1.1           Contribution.

 

(a)           Subject to the terms and conditions hereof,
RKB agrees to contribute or otherwise transfer to the Operating Partnership,
and the Operating Partnership agrees to acquire and accept from RKB, on the
date of the Closing (as defined below), all of RKB’s right, title and interest
in and to (i) the Interests, and (ii) the Other Assets.

 

(b)           Subject to the terms and conditions hereof,
at the Closing, the Operating Partnership agrees to assume from RKB and
thereafter pay, honor, 

 

 

discharge and perform, in
accordance with their respective terms, all of RKB’s liabilities and
obligations (the “Assumed Liabilities”).

 

(c)           The Operating Partnership reserves the right
not to acquire any particular Interest or Other Asset if it determines, in its
sole and absolute discretion, that the acquisition thereof would not be
appropriate for the Operating Partnership.

 

1.2           Issuance of Units

 

(a)           Subject to the terms and conditions of this
Agreement, in exchange for the Interests and Other Assets, the Operating
Partnership shall issue to RKB, and RKB shall receive 11,090,411 Units, in a
transaction intended to qualify for nonrecognition of gain to RKB pursuant to Section 721
of the Internal Revenue Code of 1986, as amended (the “Code”).  The rights of holders of the Units as of the
Closing will be as set forth in the Amended and Restated Agreement of Limited
Partnership of the Operating Partnership (the “Partnership
Agreement”).

 

(b)           The Operating Partnership shall issue the
Units to RKB or, at the option of RKB, directly to RKB’s partners (or their
designees), in accordance with written instructions provided to the Operating
Partnership by RKB (or RKB’s partners) setting forth the name and address of,
and the number of Units received by, each partner or other person, provided
that each such person (i) makes each of the representations and warranties
set forth in Section 2.10 hereof and (ii) has executed and delivered
the Limited Partner Acceptance attached hereto as Exhibit B (the “Limited Partner Acceptance”) pursuant to Section 1.3
hereof.  The name of RKB or, if
applicable, each partner or other person, and the number of Units issued to RKB
or, if applicable, each partner or other person, shall be recorded in the books
and records of the Operating Partnership.

 

1.3           Admission as a Limited Partner.  Upon execution and delivery of the Limited Partner Acceptance by RKB and, if
the partners of RKB or their designees will receive the Units pursuant to Section 1.2(b) above,
each of such persons, at the Closing, and subject to the completion of the
Closing, RKB and if applicable, the partners of RKB or such other persons,
shall be admitted as limited partners of the Operating Partnership and, as
such, shall be subject to, and bound by, the Partnership Agreement, including
the power of attorney granted therein and all the terms and conditions thereof.

 

ARTICLE II:  REPRESENTATIONS AND WARRANTIES OF RKB

 

As a material inducement to
the Operating Partnership to enter into this Agreement and to consummate the
transactions contemplated hereby, RKB and Richard L. Kramer, Steven A. Grigg
and Mark R. Keller (collectively, the “Founders”),
severally and not jointly, hereby make to the Operating Partnership each of the
representations, warranties and covenants set forth in this Article II 

 

2

 

(other than Section 2.10 hereof as it
relates to any RKB Person other than RKB). 
Each RKB Person, severally and not jointly, hereby makes to the
Operating Partnership, as to itself, each of the representations, warranties
and covenants set forth in Section 2.10 and 2.11 hereof.  The representations and warranties set forth
in this Article II are true and correct as of the date hereof.

 

2.1           Title to the Interests and Other Assets.  RKB
owns, directly or indirectly, and at the Closing will own beneficially and of
record, free and clear of any claim, lien (including tax liens), option,
charge, security interest, mortgage, deed of trust, encumbrance, rights of
assignment, purchase rights or other rights of any nature whatsoever of any
third party, and has or will have at the Closing full power and authority to
convey the Interests and Other Assets and, upon delivery of an assignment by
RKB conveying such Interests and Other Assets against payment of the
consideration for such Interests and Other Assets as herein provided, the
Operating Partnership (or its designee) will acquire good and valid title
thereto.

 

2.2           Organization and Standing.  RKB
is a limited partnership and each of the entities listed on Exhibit A
hereto (the “LLC Entities”) is a limited
liability company, in each case duly organized, validly existing and in good
standing under the law of its jurisdiction of organization, and has the
requisite partnership or limited liability company power and authority to own
and operate its assets, to carry on its business as currently conducted, and,
in the case of RKB only, to execute and deliver this Agreement and to carry out
the transactions contemplated hereby.  Each
of RKB and each LLC Entity is duly qualified to conduct business as a foreign
limited partnership or limited liability company, as the case may be, where
necessary and is in good standing in the states in which it is so qualified.

 

2.3           Authority.  RKB has full right, authority,
power and capacity (a) to enter into this Agreement and each agreement,
document and instrument to be executed and delivered by or on behalf of RKB
pursuant to this Agreement; (b) to carry out the transactions contemplated
hereby and thereby; and (c) to transfer, sell and deliver all of its
Interests to the Operating Partnership (or its designee) in accordance with
this Agreement.  This Agreement and each
agreement, document and instrument executed and delivered by or on behalf of
RKB pursuant to this Agreement constitutes, or when executed and delivered will
constitute, the legal, valid and binding obligation of RKB, each enforceable in
accordance with its respective terms.

 

2.4           Noncontravention.  Neither the entry into nor the performance
of, or compliance with, this Agreement by RKB has resulted, or will result, in
any violation of, or default under, or result in the acceleration of, any
obligation under its agreement of limited partnership, or any material
mortgage, indenture, lien agreement, note, contract, permit, judgment, decree,
order, restrictive covenant, statute, rule, or regulation applicable to RKB.

 

3

 

2.5           Litigation.  There is no (a) litigation
or proceeding, either judicial or administrative, pending or, to RKB’s or the Founders’
knowledge, threatened, affecting all or any portion of the Interests, Other
Assets or the LLC Entities and (b) outstanding order, writ, injunction or
decree of any court, government, governmental entity or authority or
arbitration against or affecting all or any portion of the Interests, Other
Assets or the LLC Entities, which in the case of (a) and (b) hereof, would
impair RKB’s ability to enter into and perform all of RKB’s obligations under
this Agreement.

 

2.6           Status as a United States Person.  RKB
is not a foreign person within the meaning of Section 1445 of the Code (“Section 1445”). 
RKB’s U.S. taxpayer identification number that has previously been
provided to the Operating Partnership is correct.  RKB’s office address is that most recent
address previously provided to the Operating Partnership.  At the time of Closing, RKB shall provide to
the Operating Partnership a certificate of non-foreign status substantially in
the form of Exhibit D hereto.

 

2.7           No Insolvency Proceedings.  No
attachments, execution proceedings, assignments for the benefit of creditors,
insolvency, bankruptcy, reorganization or other proceedings are pending or, to
RKB’s or the Founders’ knowledge, threatened against RKB or any LLC Entity, nor
are any such proceedings contemplated by RKB or any LLC Entity.

 

2.8           No Brokers.  RKB has not entered into, and
covenants that it will not enter into, any agreement, arrangement or
understanding with any person or firm which will result in the obligation of
the Operating Partnership to pay any finder’s fee, brokerage commission or
similar payment in connection with the transactions contemplated hereby (other
than underwriting fees paid in connection with the IPO).

 

2.9           Consents.  Except as may otherwise be set forth in this
Agreement, each consent, approval, authorization, order, license, certificate,
permit, registration, designation, or filing by or with any governmental agency
or third party, including lender consents and the consent of RKB’s Investor Committee,  necessary for the execution, delivery, and
performance of this Agreement or the transactions contemplated hereby by RKB
has been obtained or will be obtained on or before the Closing.

 

2.10         Securities Law Matters; Transfer Restrictions.

 

(a)           RKB and each of RKB’s partners or designees who
receive Units hereunder (RKB and its partners (or such designees) are referred
to collectively as the “RKB Persons”),
acknowledge that the Operating Partnership intends for the offer and issuance
of the Units to be exempt from registration under 

 

4

 

the Securities Act of 1933, as amended (the “Securities Act”), and applicable state securities laws.

 

(b)           Each RKB Person acknowledges that it is an “accredited
investor” within the meaning of the federal securities laws.  The only partners of RKB are the RKB
Washington Property Fund I (General Partner) LLC, RKB/Republic Capital LLC, RKB
Holding L.P., Bowman Brown, Sonia Schmidt and Unimar, Inc.  At the Closing, RKB Holding L.P. will no
longer be a partner in RKB, with the Operating Partnership previously having
acquired the interest of RKB Holding L.P. in RKB through the merger of RKB
Holding L.P. with and into the Operating Partnership.  Accordingly, neither RKB Holding L.P. nor any
of its partners will acquire any Units in connection with this Agreement and
any Units acquired by the Operating Partnership pursuant to this Agreement as
the successor to RKB Holding L.P. will be cancelled.

 

(c)           Each RKB Person will acquire the Units for
its own account and not with a view to, or for sale in connection with, any “distribution”
thereof within the meaning of the Securities Act.

 

(d)           Each RKB Person has sufficient knowledge and experience in financial, tax
and business matters to enable it to evaluate the merits and risks of
investment in the Units.  Each RKB Person
has the ability to bear the economic risk of acquiring the Units.  Each RKB Person acknowledges that (i) the
transactions contemplated by this Agreement involve complex tax consequences
for the RKB Persons, and each RKB Person is relying solely on the advice of
such person’s own tax advisors in evaluating such consequences, (ii) the
Operating Partnership has not made (nor shall it be deemed to have made) any
representations or warranties as to the tax consequences of such transaction to
the RKB Persons, and (iii) references in this Agreement to the intended
tax effect of the transactions contemplated hereby shall not be deemed to imply
any representation by the Operating Partnership as to a particular tax effect
that may be obtained by the RKB Persons. 
The RKB Persons remain solely responsible for all tax matters relating
to such persons.

 

(e)           Each RKB Person has been supplied with, or
had access to, information to which a reasonable investor would attach
significance in making an investment decision to acquire the Units and any
other information such RKB Person has requested.

 

(f)            Each RKB Person acknowledges that there are
substantial restrictions on the transferability of the Units and that the Units
will not be registered under the Securities Act or any state securities laws,
and the RKB Persons have no right to require that they be so registered.  Each RKB Person agrees that any Units it
acquires will not be sold in the absence of registration 

 

5

 

unless such sale is exempt from registration
under the Securities Act and applicable state securities laws.

 

(g)           Each RKB Person understands that no federal
agency (including the Securities and Exchange Commission) or state agency has
made or will make any finding or determination as to the fairness of an
investment in the Units (including as to the amount or value of the Units
issued pursuant hereto).

 

(h)           Each RKB Person understands that there is no
established public, private or other market for the Units acquired by such RKB
Person hereunder and it is not anticipated that there will be any public,
private or other market for such Units in the foreseeable future.

 

(i)            Each RKB Person understands that Rule 144
promulgated under the Securities Act is not currently available with respect to
the sale of Units.

 

2.11         Reliance.  Each RKB
Person and the Founders acknowledge that the Operating Partnership may rely
upon the representations and warranties in this Article II in determining
whether to enter into this Agreement. 
RKB and the Founders agree, severally and not jointly, to indemnify,
defend and hold harmless the Operating Partnership and the officers, directors
and affiliates thereof, and any employees or agents of any of the foregoing,
against any and all loss, liability, claim, damage or expense whatsoever
(including, but not limited to, any and all expenses, including attorneys’
fees, reasonably incurred in investigating, preparing or defending against any
claim or litigation commenced or threatened) due to or arising out of a breach
of any such representations or warranties (other than with respect to Section 2.10 hereof as it relates to any RKB Person other
than RKB ); provided, however, the indemnification
obligation of the Founders hereunder is limited in the case of each Founder solely
to the value of the Units such Founder will receive in connection with this
Agreement based on the initial public offering price in the IPO.

 

Each RKB Person
agrees, severally and not jointly, to indemnify, defend and hold harmless the
Operating Partnership and the officers, directors and affiliates thereof, and
any employees or agents of any of the foregoing, against any and all loss, liability,
claim, damage or expense whatsoever (including, but not limited to, any and all
expenses, including attorneys’ fees, reasonably incurred in investigating,
preparing or defending against any claim or litigation commenced or threatened)
due to or arising out of a breach of such RKB Person’s representations in Section 2.10
hereof; provided, however, the indemnification obligation of the RKB Persons
hereunder is limited in the case of each RKB Person to the value of the Units such
RKB Person will receive in connection with this Agreement based on the initial
public offering price in the IPO.

 

6

 

ARTICLE III:  REPRESENTATIONS AND WARRANTIES OF THE
OPERATING PARTNERHSIP

 

As a material inducement to
RKB, the Founders and the other RKB Persons to enter into this Agreement and to
consummate the transactions contemplated hereby, the Operating Partnership
hereby makes to RKB, the Founders and the other RKB Persons each of the
representations, warranties and covenants set forth in this Article III.  The representations and warranties set forth
in this Article III are true and correct as of the date hereof.

 

3.1           Organization
and Standing.  The Operating
Partnership is a limited partnership duly organized, validly existing and in
good standing under Delaware law, and has the requisite partnership power and
authority to own and operate its assets, to carry on its business as currently
conducted, to execute and deliver this Agreement and to carry out the
transactions contemplated hereby.  The
Operating Partnership is duly qualified to conduct business as a foreign
partnership where necessary and is in good standing in the states in which it
is so qualified.

 

3.2           Authority.  The Operating Partnership has
full right, authority, power and capacity (a) to enter into this Agreement
and each agreement, document and instrument to be executed and delivered by or
on behalf of the Operating Partnership pursuant to this Agreement; (b) to
carry out the transactions contemplated hereby and thereby; and (c) to
transfer, sell and deliver the Units to RKB (or its designee) in accordance
with this Agreement.  This Agreement and
each agreement, document and instrument executed and delivered by or on behalf
of the Operating Partnership pursuant to this Agreement constitutes, or when
executed and delivered will constitute, the legal, valid and binding obligation
of the Operating Partnership, each enforceable in accordance with its
respective terms.

 

3.3           Noncontravention.  Neither the entry into nor the performance
of, or compliance with, this Agreement by the Operating Partnership has
resulted, or will result, in any violation of, or default under, or result in
the acceleration of, any obligation under its agreement of limited partnership,
or any material mortgage, indenture, lien agreement, note, contract, permit,
judgment, decree, order, restrictive covenant, statute, rule, or regulation
applicable to the Operating Partnership.

 

3.4.          Litigation.  There is no (a) litigation or
proceeding, either judicial or administrative, pending or, to the Operating Partnership’s knowledge, threatened, affecting all
or any portion of the Units or (b) outstanding
order, writ, injunction or decree of any court, government, governmental entity
or authority or arbitration against or affecting all or any portion of the
Units, which in the case of (a) and (b) hereof, would impair the Operating Partnership’s ability to enter into and perform all
of the Operating Partnership’s obligations
under this Agreement.

 

7

 

3.5           Units Validly Issued.  The Units, when issued, will have been duly
and validly authorized and issued, free of any preemptive or similar rights,
without any obligation to restore capital except as required by the Delaware
Revised Uniform Limited Partnership Act (the “Limited
Partnership Act”) or as agreed between the Operating Partnership and
any limited partner in the Operating Partnership.

 

3.6           No
Brokers.  The Operating
Partnership has not entered into, and covenants that it will not enter
into, any agreement, arrangement or understanding with any person or firm which
will result in the obligation of RKB to pay any finder’s fee, brokerage
commission or similar payment in connection with the transactions contemplated
hereby (other than underwriting fees paid in connection with the IPO).

 

3.7           Consents. Except as may otherwise be set forth in
this Agreement, each consent, approval, authorization, order, license,
certificate, permit, registration, designation, or filing by or with any
governmental agency or body necessary for the execution, delivery, and
performance of this Agreement or the transactions contemplated hereby by the
Operating Partnership has been obtained or will be obtained on or before the
Closing.

 

3.8           Reliance.  The Operating Partnership
acknowledges that RKB, the Founders and the other RKB Persons may rely upon the
representations and warranties in this Article III in determining whether
to enter into this Agreement.  The
Operating Partnership agrees to indemnify, defend and hold harmless RKB, the
Founders and the other RKB persons and the officers, directors and affiliates
thereof, and any employees or agents of any of the foregoing, against any and
all loss, liability, claim, damage or expense whatsoever (including, but not
limited to, any and all expenses, including attorneys’ fees, reasonably
incurred in investigating, preparing or defending against any claim or
litigation commenced or threatened) due to or arising out of a breach of any
such representations or warranties.

 

3.9           Section 704(c) Allocations and Methods.  The Operating Partnership shall
elect to use the “traditional method” set forth in Section 1.704-3(b) of
the Treasury Regulations with respect to the properties currently held indirectly
by RKB and any replacement properties (the “Properties”)
with a provision for a “curative” allocation of gain to the partners in RKB (or
their successors in interest) upon a taxable disposition of any of the Properties
in an amount sufficient to eliminate any remaining disparities between the book
items and tax items of any other partners of the Operating Partnership with
respect to the Properties attributable to the application of the “ceiling rule”
under the “traditional method.”

 

8

 

ARTICLE IV:  CONDITIONS TO CLOSING

 

4.1           Conditions to the Operating Partnership’s
Obligation to Close.  The obligation of the Operating Partnership
to consummate the Closing is subject to the fulfillment, at or prior to the Closing,
of the following conditions (unless such conditions are waived in writing by
the Operating Partnership):

 

(a)           IPO Transactions.  The
other IPO Transactions, including the merger of RKB Holding L.P. with and into
the Operating Partnership, with the Operating Partnership surviving, and the
IPO, shall have occurred (or shall be occurring substantially simultaneously
with the Closing).

 

(b)           Representations and Warranties.  The
representations and warranties made by RKB and the Founders (and in the case of
Section 2.10, the RKB Persons) pursuant to this Agreement shall be true
and correct in all material respects when made, and on and as of the Closing,
as though such representations and warranties were made on the Closing.

 

(c)           Performance.  The RKB Persons shall have
performed and complied with all agreements and covenants that each of them is
required to perform or comply with pursuant to this Agreement prior to the
Closing in all material respects.

 

(d)           Legal Proceedings.  No
order, statute, rule, regulation, executive order, injunction, stay, decree, or
restraining order shall have been enacted, entered, promulgated or enforced by
any court of competent jurisdiction or governmental entity that prohibits the
consummation of the transactions contemplated hereby, and no litigation or
governmental proceeding seeking such an order shall be pending or threatened.

 

(e)           Consents and Approvals.  All
necessary consents of governmental and private parties to effect the
transactions contemplated by this Agreement, including, without limitation,
consents of lenders and the consent of RKB’s Investor Committee, shall have
been obtained.

 

4.2           Conditions to RKB’s Obligation to Close.  The
obligation of RKB to consummate the Closing is subject to the fulfillment, at
or prior to the Closing, of the following conditions (unless such conditions
are waived in writing by RKB):

 

(a)           Representation and Warranties.  The
representations, warranties and covenants of the Operating Partnership
contained in this Agreement shall be true and correct as of the Closing.

 

(b)           Performance.  The Operating Partnership
shall have performed and complied with all agreements and covenants that it is
required to 

 

9

 

perform or comply with pursuant to this
Agreement prior to the Closing in all material respects.

 

(c)           Legal Proceedings.  No
order, statute, rule, regulation, executive order, injunction, stay, decree, or
restraining order shall have been enacted, entered, promulgated or enforced by
any court of competent jurisdiction or governmental entity that prohibits the
consummation of the transactions contemplated hereby, and no litigation or
governmental proceeding seeking such an order shall be pending or threatened

 

(d)           Consents and Approvals.  All necessary
consents of governmental and private parties to effect the transactions
contemplated by this Agreement shall have been obtained.

 

4.3           Further Assurances.  Each
of the parties herein shall execute and deliver all such other and further
instruments and documents and take or cause to be taken all such other and
further actions any other party may reasonably request in order to effect the
transactions contemplated by this Agreement.

 

ARTICLE V:  CLOSING

 

5.1           Closing.  The closing hereunder (the “Closing”) shall occur on the same day as the closing of the
IPO, as close in time to the closing of the IPO as is reasonably practicable
under the circumstances.

 

5.2           Closing Deliveries by RKB.  At
the Closing, RKB shall deliver to the Operating Partnership:

 

(a)           a duly executed Assignment and Assumption
Agreement, substantially in the form attached hereto as Exhibit C (“Assignment Agreement”), pursuant to which (i) RKB shall
convey to the Operating Partnership or its designee title to the Interests, and
(ii) the Operating Partnership shall assume the Assumed Liabilities;

 

(b)           a duly executed Limited Partner Acceptance
executed by the appropriate RKB Persons; and

 

(c)           a certificate of non-foreign status
substantially in the form of Exhibit D hereto, executed by the
appropriate RKB Persons.

 

5.3           Closing Deliveries by the Operating
Partnership.  At the Closing, the Operating Partnership
shall deliver to RKB or, if applicable, the RKB Persons, the following:

 

(a)           the Units; and

 

10

 

(b)           a duly executed Assignment Agreement.

 

ARTICLE VI:  MISCELLANEOUS

 

6.1           Term of Agreement.  This Agreement may be terminated by the
mutual consent of the parties at any time before the Closing.  If the Closing does not occur by September 30,
2006, this Agreement shall be deemed terminated and shall be of no further
force and effect and neither the Operating Partnership nor any RKB Person or
any Founder shall have any further obligations pursuant to this Agreement
except as specifically set forth in this Agreement.

 

6.2           Amendment; Waiver.  Any
amendment hereto shall be effective only if signed by all parties hereto.  No waiver of any provisions of this Agreement
shall be valid unless in writing and signed by the party against whom
enforcement is sought.

 

6.3           Entire Agreement; Counterparts; Applicable
Law.  This Agreement (a) shall, together with
the Partnership Agreement, constitute the entire agreement and supersedes all
prior agreements and understandings, both written and oral, among the parties
with respect to the subject matter hereof, (b) may be executed in one or
more counterparts, each of which will be deemed an original and all of which
shall constitute one and the same instrument, and (c) shall be governed in
all respects, including validity, interpretation and effect, by the laws of the
State of Delaware without giving effect to the conflict of law provisions
thereof.

 

6.4           Assignability.  This
Agreement shall be binding upon, and shall be enforceable by and inure to the
benefit of, the parties hereto and their respective successors and assigns;
provided, however, that this Agreement may not be assigned (except by operation
of law) by any party without the prior written consent of the other party, and
any attempted assignment without such consent shall be void and of no effect.

 

6.5           Severability.  If
any provision of this Agreement, or the application thereof, is for any reason
held to any extent to be invalid or unenforceable, the remainder of this
Agreement and application of such provision to other persons or circumstances
will be interpreted so as reasonably to effect the intent of the parties
hereto.

 

6.6           Equitable Remedies.  The
parties hereto agree that irreparable damage would occur if any provision of
this Agreement was not performed in accordance with its specific terms or was
otherwise breached.  It is accordingly
agreed that the parties shall be entitled to an injunction or injunctions to
prevent breaches of this Agreement and to enforce specifically the terms and
provisions hereof in any federal or state court located in the State of
Delaware (as to which the parties agree to submit to jurisdiction for the
purposes of such action), this being in addition to any other remedy to which
they are entitled at law or in equity.

 

11

 

6.7           Survival.  It is the express intention
and agreement of the parties hereto that the representations, warranties and
covenants of the parties set forth in this Agreement shall survive the
consummation of the transactions contemplated hereby.

 

6.8           Third Party Beneficiary.  Except as specifically set forth in this
Agreement, no provision of this Agreement is intended, nor shall it be
interpreted, to provide or create any third party beneficiary rights or other
rights of any kind in any customer, affiliate, stockholder, partner, member,
director, officer, or employee of any party to this Agreement or any other
person or entity.

 

[Remainder of page intentionally left
blank]

 

12

 

IN WITNESS WHEREOF, each of
the parties hereto has executed and delivered this Agreement, or caused the
Agreement to be duly executed and delivered on its behalf, as of the date first
set forth above.

 

 

	
   

  	
  RKB Washington Property Fund I
  L.P.

  
	
   

  	
   

  
	
   

  	
  By: RKB Washington
  Property Fund I (General

  Partner) LLC, its General Partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
                    /s/
  Mark R. Keller

  	
   

  
	
   

  	
  Name: Mark R. Keller

  
	
   

  	
  Title: Manager

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Republic Property Limited
  Partnership

  
	
   

  	
   

  
	
   

  	
  By: Republic Property
  Trust, its General

  Partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
                    /s/
  Mark R. Keller

  	
   

  
	
   

  	
  Name: Mark R. Keller

  
	
   

  	
  Title: Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Founders (solely for purposes
  of Article II)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
                        /s/
  Richard L. Kramer

  	
   

  
	
   

  	
  Richard L. Kramer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
                        /s/
  Steven A. Grigg

  	
   

  
	
   

  	
  Steven A. Grigg

  

 

 

[Signature Page to RKB Fund Contribution
Agreement]

 

13

 

	
   

  	
  /s/ Mark R. Keller

  	
   

  
	
   

  	
  Mark R. Keller

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  RKB Persons (solely for
  purposes of Sections

  2.10 and 2.11)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Richard L. Kramer

  	
   

  
	
   

  	
  Richard L. Kramer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Steven A. Grigg

  	
   

  
	
   

  	
  Steven A. Grigg

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Mark R. Keller

  	
   

  
	
   

  	
  Mark R. Keller

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ David L. Peter

  	
   

  
	
   

  	
  David L. Peter

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Hoppenstein Insurance Trust

  
	
   

  	
   

  
	
   

  	
  /s/ Gary R. Siegel

  	
   

  
	
   

  	
  By: Gary R. Siegel, Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Jacobo Gadala-Maria

  	
   

  
	
   

  	
  Unimar, Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Bowman Brown

  	
   

  
	
   

  	
  Bowman Brown

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Sonia Schmidt

  	
   

  
	
   

  	
  Sonia Schmidt

  
									

 

[Signature Page to RKB Fund Contribution Agreement]

 

14

 

	
   

  	
  RKB/Republic Capital LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Mark R. Keller

  	
   

  
	
   

  	
  By: Mark R. Keller, Manager

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Republic Properties Corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Steven A. Grigg

  	
   

  
	
   

  	
  By: Steven A. Grigg, President

  

 

 

[Signature Page to RKB
Fund Contribution Agreement]

 

15

 

EXHIBIT A

 

Interests

 

One Hundred Percent (100%) of the outstanding
interests in each of :

 

RKB Corporate Oaks, LLC

RKB CP IV LLC

RKB Pender LLC

RKB Lakeside LLC

RKB Willowwood LLC

RKB Dulles Tech LLC

RPT Presidents Park LLC

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