Document:

Exhibit 4.2

Execution Copy

DYAX
CORP.

SECURITIES SALE AGREEMENT

This Securities Sale Agreement (this “Agreement”) is made and entered into as
of February 20, 2007, by and between Dyax Corp., a Delaware corporation (the “Company”), and
Genzyme Corporation, a Massachusetts corporation (the “Purchaser”).

RECITALS

WHEREAS, the Company desires to issue and sell to the Purchaser, and
the Purchaser desires to acquire from the Company, 4,400,000 shares (the “Shares”) of Common Stock, par value
$0.01 per share, of the Company (the “Common Stock”),
on the terms and conditions set forth in this Agreement;

WHEREAS, the Company and the Purchaser, concurrently herewith, are
executing and delivering a termination agreement (the “Termination
Agreement”) with respect to their Amended and Restated
Collaboration Agreement, dated May 31, 2002, as amended;

WHEREAS, the Termination Agreement contemplates the purchase by the
Purchaser of the Shares from the Company;

WHEREAS, the Company and the Purchaser are executing and delivering
this Agreement in reliance upon an exemption from securities registration under
the Securities Act of 1933, as amended (the “Securities
Act”).

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

1.             AGREEMENT TO PURCHASE AND SELL
STOCK.

(a)           Authorization.  The Company’s Board of Directors has
authorized the issuance and sale of the Shares (the “Purchased Securities”),
pursuant to the terms and conditions of this Agreement.

(b)           Agreement to Purchase and Sell
Securities.  Subject to the terms and
conditions of this Agreement, the Purchaser agrees to purchase, and the Company
agrees to sell and issue to the Purchaser, the Shares.  The purchase price for the Shares shall be
the assignment by the Purchaser to the Company of all the Purchaser’s interest
in Dyax-Genzyme LLC.

2.             CLOSING.  The
purchase and sale of the Purchased Securities shall take place at the offices
of the Purchaser, Genzyme Center, 500 Kendall Street, Cambridge, Massachusetts
02142, at 10:00 a.m. Boston time, on February 23, 2007, or at such other time
and place as the Company and the Purchaser mutually agree upon (which time and
place are referred to in this Agreement as the “Closing”).  At the Closing, the Company shall, against
delivery by the 

 

Purchaser of an instrument assigning the Purchaser’s
interest in Dyax-Genzyme LLC, provide (a) an irrevocable instruction to
its transfer agent to issue to the Purchaser one or more stock certificates
(the “Certificates”)
registered in the name of the Purchaser (or in such nominee name(s) as
designated by the Purchaser), representing the Shares, and (b) an opinion from
Company counsel, addressed to the Purchaser and dated as of the date of the
Closing, in form and substance reasonably acceptable to the Purchaser.  Closing documents may be delivered by
facsimile with original signature pages sent by overnight courier.  The date of the Closing is referred to herein
as the Closing Date.

3.             REPRESENTATIONS AND WARRANTIES OF THE COMPANY.  Except as set forth in the SEC Documents (as
defined below), the Company hereby represents and warrants to the Purchaser
that:

(a)           Organization Good Standing and
Qualification.  The Company is a
corporation duly organized, validly existing and in good standing under the
laws of the State of Delaware and has all corporate power and authority
required to (i) carry on its business as presently conducted and (ii) enter
into this Agreement and the other agreements, instruments and documents
contemplated hereby, and to consummate the transactions contemplated hereby and
thereby.  The Company is qualified to do
business and is in good standing in each jurisdiction in which the failure to
so qualify would have a Material Adverse Effect.  As used in this Agreement, “Material Adverse Effect”
means a material adverse effect on, or a material adverse change in, or a group
of such effects on or changes in, the business, operations, financial
condition, results of operations, assets or liabilities of the Company, taken
as a whole.

(b)           Capitalization.  The capitalization of the Company, prior to
the issuance of the Purchased Securities, is as follows:

(i)            The authorized capital stock of the
Company consists of 125,000,000 shares of Common Stock, par value $0.01 per
share, and 1,000,000 shares of Preferred Stock, par value $0.01 per share (the “Preferred Stock”).

(ii)           At December 31, 2006, the issued and
outstanding capital stock of the Company consisted of (A) 43,710,001 shares of
Common Stock and (B) no shares of Preferred Stock.  No shares of capital stock have been issued
by the Company since December 31, 2006 to the date hereof except for additional
shares of Common Stock issued upon exercise of stock options that were
outstanding on December 31, 2006.  The
shares of issued and outstanding capital stock of the Company have been duly
authorized and validly issued, are fully paid and nonassessable and have not
been issued in violation of or are not otherwise subject to any preemptive or
other similar rights.

(iii)          At December 31, 2006, the Company had
(1) 3,759,715 shares of Common Stock reserved for issuance upon exercise of
outstanding options, (2) no shares of Common Stock reserved for issuance upon
exercise of outstanding warrants, and (3) 63,830 shares of Common Stock
reserved for issuance under the Company’s 1998 Employee Stock Purchase Plan;
and, except for stock options granted to employees and consultants who are not
executive officers and who have been hired or promoted, the Company has not
granted any 

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additional stock options or issued any warrants to
purchase Common Stock since December 31, 2006.

With the exception of the foregoing, including the exception to
subsection (iii) above, there are no outstanding subscriptions, options,
warrants, convertible or exchangeable securities or other rights granted to or
by the Company to purchase shares of Common Stock or other securities of the
Company, and there are no commitments, plans or arrangements to issue any
shares of Common Stock or any security convertible into or exchangeable for
Common Stock.

(c)           Due Authorization.  All corporate actions on the part of the
Company necessary for the authorization, execution, delivery of, and the
performance of all obligations of the Company under this Agreement and the
authorization, issuance, reservation for issuance and delivery of all of the
Purchased Securities being sold under this Agreement have been taken, no further
consent or authorization of the Company or the Board of Directors or its
stockholders is required, and this Agreement constitutes a valid and binding
obligation of the Company, enforceable against the Company in accordance with
its terms.

(d)           Valid Issuance of Purchased
Securities.

(i)            Purchased Securities.  The Purchased Securities will be, upon
payment therefor by the Purchaser in accordance with this Agreement, duly
authorized, validly issued, fully paid and non-assessable, and free from all
taxes, liens and charges with respect to the issue thereof.

(ii)           Compliance with Securities Laws.  Subject to the accuracy of the
representations made by the Purchaser in Section 4 hereof, the Purchased
Securities  will be issued to the
Purchaser in compliance with applicable exemptions from (A) the registration
and prospectus delivery requirements of the Securities Act and (B) the
registration and qualification requirements of applicable securities laws of
the states of the United States.

(e)           Governmental Consents.  No consent, approval, order or authorization
of, or registration, qualification, designation, declaration or filing with, or
notice to, any federal, state or local governmental authority or self
regulatory agency on the part of the Company is required in connection with the
issuance of the Purchased Securities to the Purchaser, or the consummation of
the other transactions contemplated by this Agreement, except (i) such filings
as have been made prior to the date hereof, (ii) the filing of a notification
form with the Nasdaq Global Market (“Nasdaq”) and (iii) such additional
post-Closing filings as may be required to comply with applicable state and
federal securities laws and the listing requirements of Nasdaq.

(f)            Non-Contravention.  The execution, delivery and performance of
this Agreement by the Company, and the consummation by the Company of the
transactions contemplated hereby (including issuance of the Purchased
Securities), do not (i) contravene or conflict with the Certificate of
Incorporation (the “Certificate
of Incorporation”) or Bylaws (the “Bylaws”) of the Company; (ii) constitute
a violation in any material respect of any provision of any federal, state,
local or foreign law, rule, regulation, order or decree applicable to the
Company; or (iii) constitute a default or require any consent under, give rise
to any right of termination, cancellation or acceleration of, or to a loss of
any material benefit to which the 

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Company is entitled under, or result in the creation
or imposition of any lien, claim or encumbrance on any assets of the Company
under, any material contract to which the Company is a party or any material
permit, license or similar right relating to the Company or by which the
Company may be bound or affected.

(g)           Litigation.  There is no action, suit, proceeding, claim,
arbitration or investigation (“Action”) pending or, to the Company’s knowledge,
threatened in writing that seeks to prevent, enjoin, alter, challenge or delay
the transactions contemplated by this Agreement (including the issuance of the
Purchased Securities).

(h)           Compliance with Law and Charter
Documents.  The Company is not in
violation or default of any provisions of the Certificate of Incorporation or
the Bylaws.

(i)            SEC Documents.

(1)           Reports.  The Company has filed in a timely manner all
reports, schedules, forms, statements and other documents required to be filed
by it with the SEC pursuant to the reporting requirements of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”), and the rules and regulations
promulgated thereunder.  The Company has
filed on the SEC’s EDGAR system, prior to the date hereof, its Annual Report on
Form 10-K for the fiscal year ended December 31, 2005 (the “Form 10-K”), its
quarterly reports on Form 10-Q for the fiscal quarters ended March 31, 2006,
June 30, 2006, and September 30, 2006 (the “Form 10-Qs”), its Proxy Statement for
its Annual Meeting of Stockholders held on May 18, 2006 (the “Proxy Statement”),
and any Current Reports on Form 8-K (“Form 8-Ks”) required to be filed by the
Company with the SEC for events occurring since January 1, 2006 and prior to
the date of this Agreement (the Form 10-K, Form 10-Qs, Proxy Statement and Form
8-Ks are collectively referred to herein as the “SEC Documents”).  Each SEC Document, as of its date (or, if
amended or superseded by a filing prior to the Closing Date, then on the date
of such filing), did not contain any untrue statement of a material fact or
omit to state a material fact necessary in order to make the statements made
therein, in light of the circumstances under which they were made, not
misleading.  Each SEC Document, as it may
have been subsequently amended by filings made by the Company with the SEC
prior to the date hereof, complied in all material respects with the
requirements of the Exchange Act and the rules and regulations of the SEC
promulgated thereunder applicable to such SEC Document.  As of their respective dates, the financial
statements of the Company included in the SEC Documents complied as to form and
substance in all material respects with applicable accounting requirements and
published rules and regulations of the Commission with respect thereto. Such
financial statements have been prepared in accordance with generally accepted
accounting principles, consistently applied in the United States (“GAAP”), during the periods
involved (except (i) as may be otherwise indicated in such financial statements
or the notes thereto, or (ii) in the case of unaudited interim statements, to
the extent they may exclude footnotes or may be condensed or summary
statements), correspond to the books and records of the Company and fairly
present in all material respects the financial position of the Company as of
the dates thereof and the results of operations and cash flows for the periods
then ended.  The Company has not been
required to file prior to the date hereof any agreement, note, lease, mortgage,
deed or other instrument entered into prior to the date of this Agreement and
to which the Company is a party or by which the Company is bound which has not
been previously filed as an exhibit to the SEC Documents.

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The Company has no reason to believe that its
independent auditors will withhold their consent to the inclusion of their
audit opinion concerning the Company’s financial statements that shall be
included in a Registration Statement pursuant to this Agreement.

(2)           Sarbanes-Oxley.  The Chief Executive Officer and the Chief
Financial Officer of the Company have signed, and the Company has furnished to
the SEC, all certifications required by Sections 302 and 906 of the
Sarbanes-Oxley Act of 2002.  Such
certifications contain no exceptions to the matters certified therein and have
not been modified or withdrawn; and neither the Company nor any of its officers
has received notice from any governmental entity questioning or challenging the
accuracy of such certifications.  The
Company is otherwise in compliance in all material respects with all applicable
effective provisions of the Sarbanes-Oxley Act of 2002 and the rules and
regulations issued thereunder by the SEC.

(j)            Absence of Certain Changes Since
the Balance Sheet Date.  Since
September 30, 2006, except for the transactions contemplated hereby and by the
Termination Agreement, there has not been:

(i)            any declaration, setting aside or
payment of any dividend or other distribution of the assets of the Company with
respect to any shares of capital stock of the Company or any repurchase,
redemption or other acquisition by the Company of any outstanding shares of the
Company’s capital stock;

(ii)           any damage, destruction or insurable
loss, whether or not covered by insurance, except for such occurrences,
individually and collectively, that have not had, and would not reasonably be
expected to have, a Material Adverse Effect; or

(iii)          any waiver by the Company of a
valuable right or of a material debt owed to it, except for such waivers,
individually and collectively, that have not had, and would not reasonably be
expected to have, a Material Adverse Effect.

(k)           Registration Rights.  The Company is not subject to any agreement
providing any person or entity any rights (including piggyback registration
rights) that have not been waived to have any securities of the Company
included in the Registration Statement (as defined in Section 5(a)(ii)).

(l)            General Solicitation.  Neither the Company nor any other person or
entity authorized by the Company to act on its behalf has engaged in a general
solicitation or general advertising (within the meaning of Regulation D of the
Securities Act) of investors with respect to offers or sales of the Purchased
Securities.

(m)          No Integrated Offering.  Neither the Company, nor any affiliate of the
Company, nor any person acting on its or their behalf has, directly or
indirectly, made any offers or sales of any security or solicited any offers to
buy any security, under circumstances that would cause this offering of the
Purchased Securities to be integrated with prior offerings by the Company for
purposes of the Securities Act, or any applicable stockholder approval
provisions, including, without limitation, under the rules and regulations of
the Nasdaq, nor will the 

 5
 

 

Company take any action or steps that would cause the
offering of the Purchased Shares to be integrated with other offerings.

(n)           Nasdaq Listing Matters.  The Common Stock of the Company is quoted on
Nasdaq under the ticker symbol “DYAX.” 
The Company has not received any notice that it is not in compliance
with the listing or maintenance requirements of Nasdaq.  Subject to the Company notifying Nasdaq of
the Purchased Securities as a “Listing of Additional Shares”, the issuance and
sale of the Purchased Securities under this Agreement does not contravene the
rules and regulations of Nasdaq.

(o)           Investment Company.  The Company is not now, and after the sale of
the Purchased Securities under this Agreement will not be, an “investment
company” within the meaning of the Investment Company Act of 1940, as amended.

(p)           Brokers.  The Company has not engaged any brokers,
finders or agents, or incurred, or will incur, directly or indirectly, any
liability for brokerage or finder’s fees or agents’ commissions or any similar
charges in connection with this Agreement and the transactions contemplated
hereby.

4.             REPRESENTATIONS AND WARRANTIES OF THE PURCHASER.  The Purchaser hereby represents and warrants
to the Company:

(a)           Organization Good Standing and
Qualification.  The Purchaser has the
requisite corporate power and authority required to enter into this Agreement
and to consummate the transactions contemplated hereby.

(b)           Authorization.  The execution of this Agreement has been duly
authorized by all necessary corporate action on the part of the Purchaser.  This Agreement constitutes the Purchaser’s
legal, valid and binding obligation, enforceable in accordance with its terms.

(c)           Litigation.  There is no action pending, or, to its
knowledge threatened in writing, that seeks to prevent, enjoin, alter,
challenge or delay the transactions contemplated by this Agreement.

(d)           Purchase for own Account.  The Purchased Securities are being acquired
for investment for the Purchaser’s own account, not as a nominee or agent, and
not with a view to the public resale or distribution thereof within the meaning
of the Securities Act, without prejudice, however, to such Purchaser’s right at
all times to sell or otherwise dispose of all or any part of such securities in
compliance with applicable federal and state securities laws and as otherwise
contemplated by this Agreement.  The
Purchaser represents that it has not been formed for the specific purpose of
acquiring the Purchased Securities.

(e)           Investment Experience.  The Purchaser has experience as an investor
in securities of companies and acknowledges that it can bear the economic risk
of its investment in the Purchased Securities and has such knowledge and
experience in financial or business matters that it is capable of evaluating
the merits and risks of this investment in the Purchased Securities.

 6

 

(f)            Accredited Investor Status.  The Purchaser is an “accredited investor”
within the meaning of Regulation D promulgated under the Securities Act.

(g)           Receipt of Information.  The Purchaser has had an opportunity to ask
questions and receive answers from the Company regarding the terms and
conditions of the issuance and sale of the Purchased Securities and the
business, properties, and financial condition of the Company.  Neither such inquiries nor any other investigation
conducted by or on behalf of the Purchaser or its representatives or counsel
shall modify, amend or affect the Purchaser’s right to rely on the truth,
accuracy and completeness of such information and the Company’s representations
and warranties contained in this Agreement.

(h)           Restricted Securities.  The Purchaser understands that the Purchased
Securities have not been registered under the Securities Act and will not sell,
assign, or transfer any of the Purchased Securities unless (i) pursuant to an
effective registration statement under the Securities Act, (ii) the Purchaser
provides the Company with evidence reasonably satisfactory to the Company to
the effect that a sale, assignment or transfer of the Purchased Securities may
be made without registration under the Securities Act and the transferee agrees
to be bound by the terms and conditions of this Agreement, or (iii) the
Purchaser provides the Company with reasonable assurances (in the form of
standard representation letters) and an opinion of counsel in form and
substance reasonably satisfactory to the Company that the Purchased Shares can
be sold pursuant to Rule 144 promulgated under the Securities Act (“Rule 144”).  Upon satisfaction of the foregoing to the
Company’s reasonable satisfaction, the Purchaser may transfer the Purchased
Securities.

(i)            Legends.  The Purchaser agrees that the Certificates
for the Purchased Securities shall bear the following legend:

“THESE SECURITIES
HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE
SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM
REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”),
AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE
EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE
SECURITIES LAWS AS EVIDENCED BY EVIDENCE REASONABLY ACCEPTABLE TO THE COMPANY
TO SUCH EFFECT.”

The Company shall use its
best efforts to cause its counsel to issue a legal opinion to the Company’s
transfer agent promptly to effect the removal of such legend after (i) the
date on which the Registration Statement is declared effective (the “Effective Date”) and (ii) the
receipt of a request from the Purchaser that it is selling any or all of the
Purchased Securities pursuant to and in accordance with the Registration
Statement.  A new 

 7
 

 

certificate representing any Purchased Securities not
so sold should continue to bear the legend.

5.             REGISTRATION; COMPLIANCE WITH
THE SECURITIES ACT.

(a)           Registration of the Purchased
Securities.  The Company hereby
agrees that it shall:

(i)            prepare and file with the SEC as
soon as practicable and in no event later than sixty (60) days following the
Closing, a registration statement (the “Registration Statement”), to enable the
resale of the Purchased Securities (together with any securities issued as a
dividend or other distribution with respect to, or in exchange for, or in
replacement of, the Purchased Securities, the “Registrable Shares”) by the Purchaser
from time to time and use commercially reasonable efforts to cause such
Registration Statement to be declared effective, within ninety (90) days
following the Closing Date or, in the event of a review of the Registration
Statement by the SEC, within one hundred fifty (150) days following the Closing
Date, and, subject to exceptions provided herein, to remain continuously
effective until the earlier of (A) the second anniversary of the Closing Date,
(B) the date on which all Registrable Shares purchased by the Purchaser
pursuant to this Agreement have been sold thereunder, or (C) the date on which
the Registrable Shares can be sold pursuant to Rule 144(k) promulgated under
the Securities Act (the “Registration
Period”).  In the event
that the Company does not meet the requirements for the use of Form S-3, the
Company shall use such other form as is available for such a registration, and
shall convert such other form to Form S-3, or file a replacement registration
statement on Form S-3, promptly after the first date on which it meets such
requirements;

(ii)           prepare and file with the SEC such
amendments (including post-effective amendments) and supplements to the Registration
Statement and the Prospectus (as defined below) used in connection therewith as
may be necessary to keep the Registration Statement effective at all times
until the end of the Registration Period;

(iii)          furnish to the Purchaser sufficient
copies of each final Prospectus (as defined below, and including any supplement
or amendment thereto) in order to facilitate the public sale or other
disposition of all or any of the Registrable Shares by the Purchaser;

(iv)          promptly notify the Purchaser when the
Registration Statement has been declared effective;

(v)           promptly notify the Purchaser in
writing of the existence of any fact or the happening of any event, during the
Registration Period (but not as to the substance of any such fact or event),
that makes any statement of a material fact made in the Registration Statement,
the Prospectus, any amendment or supplement thereto, or any document
incorporated by reference therein untrue, or that requires the making of any
additions to or changes in the Registration Statement or the Prospectus in
order to make the statements therein not misleading (provided, however, that no notice by the Company shall be
required pursuant to this subsection (vi) in the event that the Company either
contemporaneously files a prospectus supplement to update the Prospectus or a
Form 8-K or other appropriate Exchange Act report that is 

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incorporated by reference into the Registration
Statement, which, in either case, contains the requisite information with
respect to such material event that results in such Registration Statement no
longer containing any such untrue or misleading statements);

(vi)          furnish to the Purchaser from the date
of this Agreement until the end of the Registration Period, copies of its
periodic reports filed with the SEC pursuant to the Exchange Act and the rules
and regulations promulgated thereunder, if any such reports are not filed with
the SEC in an electronic, publicly available form;

(vii)         bear all expenses in connection with
the procedures described in paragraphs (i) through (vii) of this Section 5(a)
and the registration of the Registrable Shares pursuant to the Registration
Statement other than underwriting discounts, brokerage fees and commissions
incurred by the Purchaser, if any.

(b)           If for any reason prior to the
expiration of the Registration Period a Registration Statement required to be
filed pursuant to Section 5(a) ceases to be effective or fails to cover all of
the Purchased Shares required to be covered by such Registration Statement, the
Purchaser may subsequently demand registration pursuant to the terms of and
within the time frames set forth in Section 5(a)(ii) above by providing written
demand registration notice to the Company (including a registration on Form S-1
to the extent the Company is not eligible to use any short form registration in
connection with such demand, a “Demand Registration”).  Upon receipt of such demand registration
notice, the Company shall comply with its registration obligations as defined
in Sections 5(a)(ii)-(viii) above.  The
filing deadline and effectiveness deadline with respect to any Demand
Registration will be those dates which are forty-five (45) days and one hundred
thirty five (135) days after the date that the Demand Registration notice is
delivered to the Company.

(c)           Transfer of Registrable Shares
After Registration; Suspension.

(i)            In the event of:  (A) any request by the SEC or any other
federal or state governmental authority for amendments or supplements to a
Registration Statement or related Prospectus or for additional information, (B)
the issuance by the SEC or any other federal or state governmental authority of
any stop order suspending the effectiveness of a Registration Statement or the
initiation of any proceedings for that purpose, (C) the receipt by the Company
of any notification with respect to the suspension of the qualification or
exemption from qualification of any of the Registrable Shares for sale in any
jurisdiction or the initiation of any proceeding for such purpose, or (D) any
event or circumstance which necessitates the making of any changes in the
Registration Statement or Prospectus, or any document incorporated or deemed to
be incorporated therein by reference, so that, in the case of the Registration
Statement, it will not contain any untrue statement of a material fact or any
omission to state a material fact required to be stated therein or necessary to
make the statements therein not misleading, and that in the case of the
Prospectus, it will not contain any untrue statement of a material fact or any
omission to state a material fact required to be stated therein or necessary to
make the statements therein, in the light of the circumstances under which they
were made, not misleading, then the Company shall deliver a certificate in
writing to the Purchaser (the “Suspension Notice”) to the effect of the foregoing
(which notice will not disclose the content of any material non-public
information and will indicate the date of the beginning and end of the intended
period of 

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suspension, if known), and, upon receipt of such
Suspension Notice, the Purchaser will discontinue disposition of Registrable
Shares covered by the Registration Statement or Prospectus (a “Suspension”) until
the Purchaser’s receipt of copies of a supplemented or amended Prospectus
prepared and filed by the Company, or until the Purchaser is advised in writing
by the Company that the current Prospectus may be used, and have received
copies of any additional or supplemental filings that are incorporated or
deemed incorporated by reference in any such prospectus.  In the event of any Suspension, the Company
will use its best efforts to cause the use of the Prospectus so suspended to be
resumed as soon as possible after delivery of a Suspension Notice to the
Purchaser.

(ii)           The Company will cooperate to
facilitate the timely preparation and delivery of certificates representing
Registrable Shares sold.

(d)           Indemnification.  For the purpose of this Section 5(f), the
term “Registration
Statement” shall include any preliminary or final Prospectus,
exhibit, supplement or amendment included in or relating to the Registration
Statement referred to in Section 5(a).

(i)            Indemnification by the
Company. The Company will, and hereby does,
indemnify, hold harmless and defend the Purchaser, its directors, officers,
partners, employees, agents, representatives of, and each Person, if any, who
controls the Purchaser within the meaning of the Securities Act or the Exchange
Act (each, an “Purchaser Indemnified Person”),
against any losses, claims, damages, liabilities, judgments, fines, penalties,
charges, costs, attorneys’ fees, amounts paid in settlement or reasonable
expenses, joint or several, (collectively, “Claims”) incurred in investigating, preparing or
defending any action, claim, suit, inquiry, proceeding, investigation or appeal
taken from the foregoing by or before any court or governmental, administrative
or other regulatory agency, body or the SEC, whether pending or threatened,
whether or not an indemnified party is or may be a party thereto (“Indemnified Damages”), to
which any of them may become subject insofar as such Claims (or actions or
proceedings, whether commenced or threatened, in respect thereof) arise out of
or are based upon:

(1)           any untrue statement or alleged untrue
statement of a material fact in a Registration Statement or any post-effective
amendment thereto or the omission or alleged omission to state a material fact
required to be stated therein or necessary to make the statements therein not
misleading;

(2)           any untrue statement or alleged
untrue statement of a material fact contained in any preliminary prospectus if
used prior to the Effective Date of such Registration Statement, or contained
in the final prospectus (as amended or supplemented, if the Company files any
amendment thereof or supplement thereto with the SEC) or the omission or
alleged omission to state therein any material fact necessary to make the
statements made therein, in light of the circumstances under which the
statements therein were made, not misleading;

(3)           any violation or alleged violation by
the Company of the Securities Act, the Exchange Act, any other securities law,
or any rule or regulation thereunder relating to the offer or sale of the
Purchased Shares pursuant to a Registration Statement  (the matters in the foregoing clauses (1) through (3) being,
collectively, “Violations”).

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Subject to subsection (d)(iii) below, the Company
shall reimburse the Purchaser and each of its controlling persons, promptly as
such expenses are incurred and are due and payable, for any legal fees or
disbursements or other expenses incurred by them in connection with
investigating or defending any such Claim. 
Notwithstanding anything to the contrary contained herein, the
indemnification agreement contained in this subsection (d)(i): (A) shall not
apply to a Claim by a Purchaser Indemnified Person arising out of or based upon
a Violation which occurs in reliance upon and in conformity with information
regarding the Purchaser furnished in writing to the Company by the Purchaser
expressly for use in connection with the preparation of the Registration
Statement or any such amendment thereof or supplement thereto.  Such indemnity shall remain in full force and
effect regardless of any investigation made by or on behalf of the Purchaser
Indemnified Person and shall survive the transfer of the Registrable Securities
by the Purchaser in accordance with this Agreement.

(ii)           Indemnification by the Purchaser.    The Purchaser agrees to severally and not
jointly indemnify, hold harmless and defend, to the same extent and in the same
manner as is set forth in subsection subsection (d)(i) above, the Company, each
of its directors, each of its officers who signs the Registration Statement,
each of the Company’s agents or representatives, and each Person, if any, who
controls the Company within the meaning of the Securities Act or the Exchange
Act (each a “Company Indemnified Party”),
against any Claim or Indemnified Damages to which any of them may become
subject, under the Securities Act, the Exchange Act or otherwise, insofar as
such Claim or Indemnified Damages arise out of or are based upon any Violation,
in each case to the extent, and only to the extent, that such Violation occurs
in reliance upon and in conformity with written information regarding the
Purchaser furnished to the Company by the Purchaser specifically for use in
connection with such Registration Statement; provided, however, that the
indemnity agreement contained in this subsection (d)(ii) and the agreement with
respect to contribution set forth below shall not apply to amounts paid in
settlement of any Claim if such settlement is effected without the prior
written consent of such Purchaser, which consent shall not be unreasonably
withheld or delayed; provided, further, however, that the Purchaser shall be
liable under this subsection (d)(ii) for only that amount of a Claim or
Indemnified Damages as does not exceed the net proceeds to the Purchaser as a
result of the sale of the Purchased Shares pursuant to the Registration
Statement giving rise to such liability. 
Such indemnity shall remain in full force and effect regardless of any
investigation made by or on behalf of such Company Indemnified Party and shall
survive the transfer of the Registrable Securities by the Purchaser pursuant to
this Agreement.  Notwithstanding anything
to the contrary contained herein, the indemnification agreement contained in
this subsection (d)(ii) with respect to any prospectus shall not inure to the
benefit of any Company Indemnified Party if the untrue statement or omission of
material fact contained in the prospectus was corrected on a timely basis in
the prospectus, as then amended or supplemented.

(iii)          Indemnification Procedure.  Promptly after receipt by a Purchaser Indemnified
Person or Company Indemnified Party under this subsection (d) of notice of the
commencement of any action or proceeding (including any governmental action or
proceeding) involving a Claim, such Purchaser Indemnified Person or Company
Indemnified Party shall, if a Claim in respect thereof is to be made against
any indemnifying party under this subsection (d), deliver to the indemnifying
party a written notice of the commencement thereof, and the indemnifying party
shall have the right to participate in, and, to the extent the indemnifying
party 

 11
 

 

so desires, jointly with any other
indemnifying party similarly noticed, to assume control of the defense thereof
with counsel mutually satisfactory to the indemnifying party and the Purchaser
Indemnified Person or the Company Indemnified Party, as the case may be;
provided, however, that a Purchaser Indemnified Person or Company Indemnified
Party shall have the right to retain its own counsel with the fees and expenses
of not more than one counsel for all Purchaser Indemnified Persons or Company
Indemnified Parties, respectively, to be paid by the indemnifying party, if, in
the reasonable opinion of counsel retained by the indemnifying party, the
representation by such counsel of the Purchaser Indemnified Persons or Company
Indemnified Parties and the indemnifying party would be inappropriate due to
actual or potential conflicting interests between such Purchaser Indemnified
Person or Company Indemnified Party and any other party represented by such
counsel in such proceeding.  The Company
Indemnified Party or Purchaser Indemnified Person shall cooperate with the
indemnifying party in connection with any negotiation or defense of any such
action or claim by the indemnifying party and shall furnish to the indemnifying
party all information reasonably available to the Company Indemnified Party or
Purchaser Indemnified Person which relates to such action or claim.  The indemnifying party shall keep the Company
Indemnified Party or Purchaser Indemnified Person apprised as to the status of
the defense or any settlement negotiations with respect thereto.  No indemnifying party shall be liable for any
settlement of any action, claim or proceeding effected without its prior written
consent, which consent shall not be unreasonably withheld.  No indemnifying party shall, without the
prior written consent of the Company Indemnified Party or Purchaser Indemnified
Person, consent to entry of any judgment or enter into any settlement or other
compromise which (i) does not include as an unconditional term thereof the
giving by the claimant or plaintiff to such Company Indemnified Party or
Purchaser Indemnified Person of a release from all liability in respect of such
claim or litigation, (ii) requires any admission of wrongdoing by the Company
Indemnified Party or Purchaser Indemnified Party or (iii) obligates or requires
a Company Indemnified Party or Purchaser Indemnified Party to take, or refrain
from taking, any action.  The failure to
deliver written notice to the indemnifying party within a reasonable time of
the commencement of any such action shall not relieve such indemnifying party
of any liability to the Purchaser Indemnified Person or Company Indemnified
Party under this subsection (d), except to the extent that the indemnifying
party is materially prejudiced in its ability to defend such action.

(iv)          Payments.  The indemnification required by this
subsection (d) shall be made by periodic payments of the amount thereof during
the course of the investigation or defense, as and when bills are received or
Indemnified Damages are incurred.  The
indemnity agreements contained herein shall be in addition to (a) any cause of
action or similar right of the Company Indemnified Party or Purchaser
Indemnified Person against the indemnifying party or others, and (b) any
liabilities the indemnifying party may be subject to pursuant to the law.

(v)           Contribution.  If for any
reason the indemnification provided for in this subsection (d) is unavailable
to a Company Indemnified Party or a Purchaser Indemnified Party or insufficient
to hold it harmless, other than as expressly specified therein, then the
indemnifying party shall contribute to the amount paid or payable by the
Company Indemnified Party or the Purchaser Indemnified Party, as applicable, as
a result of Claims in such proportion as is appropriate to reflect the relative
fault of the indemnified party and the indemnifying party, as well as any other
relevant equitable considerations.  No person
guilty of fraudulent misrepresentation within the meaning of Section 11(f) of
the Securities Act shall be entitled to 

 12
 

 

contribution from any person not
guilty of such fraudulent misrepresentation. 
In no event shall the contribution obligation of a holder of Purchased
Shares be greater in amount than the dollar amount of the proceeds (net of all
expenses paid by such holder in connection with any claim relating to this
subsection (d)(v) and the amount of any damages such holder has otherwise been
required to pay by reason of such untrue or alleged untrue statement or
omission or alleged omission) received by it upon the sale of the Purchased
Shares giving rise to such contribution obligation.

(e)           Rule 144 Information.  For so long as the Registration Period
continues, the Company shall file in a timely manner all reports required to be
filed by it under the Securities Act and the Exchange Act and the rules and
regulations promulgated thereunder and shall take such further action to the
extent required to enable the Purchaser to sell the Purchased Shares pursuant
to Rule 144 under the Securities Act (as such rule may be amended from time to
time).

6.             COVENANT OF PURCHASER.    The Purchaser covenants and agrees to vote,
directly or by delivery of a proxy, at each meeting of stockholders of the
Company all Shares it beneficially owns as of the record date for such meeting,
and to vote or cause such proxies to vote such Shares as closely as possible in
accordance with the division of the votes cast by all other shares of Common
Stock for which votes are cast on each matter properly brought before such
meeting, thereby increasing the number of shares voted at such meeting but not
changing the division of votes cast for and against any such matter.  In furtherance of this covenant, the
Purchaser agrees to deliver a proxy in such form as the Company may reasonably
request with respect to the Shares the Purchaser then beneficially owns.  Notwithstanding anything in this Agreement to
the contrary, the covenants of the Purchaser pursuant to this Section 6 shall
terminate and be of no further force and effect at such time as the Purchaser
ceases to hold at least twenty percent (20%) of the Shares.

7.             MISCELLANEOUS.

(a)           Successors and Assigns.  The terms and conditions of this Agreement
will inure to the benefit of and be binding upon the respective successors and
permitted assigns of the parties.  The
Company shall not assign this Agreement or any rights or obligations hereunder
without the prior written consent of the Purchaser.  The Purchaser may assign its rights under
this Agreement to any person to whom the Purchaser assigns or transfers any
Purchased Securities, provided that such transferee agrees in writing to be
bound by the terms and provisions of this Agreement, and such transfer is in
compliance with the terms and provisions of this Agreement and permitted by
federal and state securities laws.

(b)           Governing Law.  This Agreement will be governed by and
construed and enforced under the internal laws of the State of Delaware,
without reference to principles of conflict of laws or choice of laws.  EACH PARTY HEREBY IRREVOCABLY WAIVES ANY
RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION
OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR ARISING OUT OF THIS
AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

 13
 

 

(c)           Survival.  The representations and warranties of the
Company and the Purchaser contained in Sections 3 and 4 of this Agreement shall
survive the Closing.

(d)           Counterparts.  This Agreement may be executed in two or more
counterparts, each of which will be deemed an original, but all of which
together will constitute one and the same instrument.

(e)           Headings.  The headings and captions used in this
Agreement are used for convenience only and are not to be considered in
construing or interpreting this Agreement. 
All references in this Agreement to sections, paragraphs, exhibits and
schedules will, unless otherwise provided, refer to sections and paragraphs
hereof and exhibits and schedules attached hereto, all of which exhibits and
schedules are incorporated herein by reference.

(f)            Amendments and Waivers. This
Agreement may be amended and the observance of any term of this Agreement may
be waived only with the written consent of the Company and the Purchaser.

(g)           Severability.  If any provision of this Agreement is held to
be unenforceable under applicable law, such provision will be excluded from
this Agreement and the balance of the Agreement will be interpreted as if such
provision were so excluded and will be enforceable in accordance with its
terms.

[Remainder of page intentionally left blank.]

* * *

 14

 

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

	
  

  	
  DYAX CORP.

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
  By:

  	
  /s/ Henry E. Blair

  	 

	
   

  	
  Name: Henry E. Blair

  	
   

  	 

	
   

  	
  Title:   Chairman
  and CEO

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
  GENZYME CORPORATION

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
  By:

  	
  /s/ Michael S. Wyzga

  	 

	
   

  	
  Name: Michael S. Wyzga

  	
   

  	 

	
   

  	
  Title:   Executive
  Vice President

  	
   

  	 

	
   

  	
  and Chief Financial OfficerExhibit
10.67

PURCHASE AND SALE AGREEMENT

(750 and 700-800 Central Expressway, Santa Clara, California)

THIS
PURCHASE AND SALE AGREEMENT (this “Agreement”)
is dated for reference purposes as of March 21, 2007, between Sobrato
Development Company No. 051, a California Limited Partnership (“SDC 051”), Real Estate Trust at Community
Foundation Silicon Valley, a California nonprofit public benefit corporation (“RET”) (collectively, “Sellers”,
and each individually sometimes referred to as a “Seller”), and Harvard Property Trust, LLC, a Delaware limited
liability company, d/b/a Behringer Harvard Funds (“Buyer”).

RECITALS

A.            SDC 051 owns that
certain real property commonly known as 750 Central Expressway, in the City of
Santa Clara, County of Santa Clara, California, (APN 224-04-086) more
particularly described on Exhibit A-1 attached hereto (the “SDC 051 Land”), together with the building
and other improvements owned by SDC 051 and located on the SDC 051 Land
(collectively, the “SDC 051 Improvements”),
and all rights, privileges, easements and appurtenances to the SDC 051 Land and
the SDC 051 Improvements, if any, to the extent assignable and subject to any
conditions and restrictions contained in any of the foregoing (the SDC 051
Land, SDC 051 Improvements and all such rights, privileges, easements and
appurtenances being collectively referred to herein as the “SDC 051 Real Property”).

B.            RET owns that certain
real property commonly known as 700-800 Central Expressway, in the City of
Santa Clara, County of Santa Clara, California, (APN 224-04-085) more
particularly described on Exhibit A-2 attached hereto (the “RET Land”), together with the buildings,
structures and other improvements owned by RET and located on the RET Land
(collectively, the “RET Improvements”),
and all rights, privileges, easements and appurtenances to the RET Land and the
RET Improvements, if any, to the extent assignable and subject to any
conditions and restrictions contained in any of the foregoing (the RET Land,
RET Improvements and all such rights, privileges, easements and appurtenances
being collectively referred to herein as the “RET
Real Property”).  The SDC 051
Real Property and RET Real Property are collectively referred to in this
Agreement as the “Real Properties”
and sometimes individually as a “Real
Property”.  The SDC 051 Land
and RET Land are collectively, and sometimes individually, referred to in this
Agreement as the “Land”.  The SDC 051 Improvements and RET Improvements
are collectively, and sometimes individually, referred to in this Agreement as
the “Improvements”.

C.            Each Seller desires to
sell to Buyer, and Buyer desires to purchase from each Seller, that portion of
the Property (defined below) owned by such Seller.

NOW,
THEREFORE, for valuable consideration, the receipt of which is hereby
acknowledged, the parties agree as follows:

1.             Purchase and Sale.  In consideration of their mutual covenants
set forth in this Agreement, each Seller agrees to sell to Buyer, and Buyer
agrees to purchase from each Seller, 

 1
 

for the Purchase
Price (defined in Section 2) and on the terms and conditions set forth
herein, the following:

(a)           The Real Property owned
by such Seller;

(b)           All of Seller’s right,
title and interest as lessor in all leases for any portion of such Seller’s
Real Property in existence as of the Close of Escrow (defined in Section
3(a)) (said leases, together with any and all amendments, modifications or
supplements thereto, are collectively referred to as the “Leases”),
which Leases shall be assigned by such Seller to Buyer pursuant to an
Assignment and Assumption of Leases in the form attached hereto as Exhibit B
(individually an “Assignment of Leases”
and collectively the “Assignments of Leases”);

(c)           All tangible personal
property and fixtures owned by such Seller and located on such Seller’s Real
Property as of the Close of Escrow, if any, which personal property and
fixtures shall be inventoried by Buyer and confirmed by Sellers during the Due
Diligence Period and set forth on a list which shall be attached hereto as Exhibit
C (the “Personal Property”), which
Personal Property shall be transferred to Buyer pursuant to a Bill of Sale in
the form attached hereto as Exhibit D (individually a “Bill of Sale” and collectively the “Bills of
Sale”), subject however to Section 9(d) below and to loss
resulting from theft or casualty;

(d)           All intangible property
owned by Seller and used solely in connection with such Seller’s Property
including (i) all warranties and guaranties (express or implied) issued to
Sellers; (ii) all licenses, permits, entitlements, certificates of occupancy
and other consents or approvals from governmental authorities; (iii) all
other intangible property associated with the use or operation of the Real
Property or Personal Property; and (iv) all plans, specifications, drawings
(including CAD drawings), reports, studies, books, records and other documents
now in effect with respect to such Real Property and Personal Property (“Intangible Property”); if any, all of which shall be
assigned to Buyer (as and to the extent such rights may be assignable) pursuant
to an Assignment and Assumption of Intangible Property in the form attached
hereto as Exhibit E (individually an “Assignment
of Intangible Property” and collectively, the “Assignments
of Intangible Property”), provided that said assignment shall be
effective only to the extent any of the foregoing matters relate specifically
and only to such Real Property and Personal Property; and provided further that
as to any indemnification, hold harmless and defense rights or causes of action
relating to such Real Property or other Property to the extent assignable to
Buyer and relating to the period prior to Closing, such Seller shall reserve to
itself on a non-exclusive basis with Buyer any rights and benefits of any indemnification,
hold harmless and defense rights and causes of action relating to the period
prior to Closing; and

(e)           All right, title and
interest of such Seller under the service, supply, advertising, maintenance and
other contracts affecting such Seller’s Real Property and Personal Property
identified on Exhibit F, and such other contracts affecting such Seller’s
Real Property and Personal Property entered into after the Effective Date
pursuant to Section 9(d), to the extent any of the foregoing are in
effect as of the Close of Escrow, (collectively, the “Service
Contracts”), which shall be assigned to Buyer (as and to the extent
such rights may be assignable) pursuant to an Assignment and Assumption of
Contracts in the form attached hereto as Exhibit G (an “Assignment of Contracts”). 
As to the Service Contracts benefiting the RET Real Property, such
contracts were not assigned to RET when the RET Real Property was 

 2
 

conveyed by SDC 051 to RET, the rights therein having
been retained by SDC 051 and/or it’s affiliate Sobrato Development Companies
(which manages the RET Real Property on behalf of RET).  Therefore, at the Closing, assignment of the
Service Contracts shall be effectuated by an Assignment of Contracts executed
and delivered by SDC 051 and/or Sobrato Development Companies, as
applicable.  SDC 051 acknowledges that
Sobrato Development Companies is an affiliate of SDC 051 and SDC 051 agrees to
cause Sobrato Development Companies to comply with its obligations hereunder.

The
Real Property, Personal Property, Intangible Property and Sellers’ right, title
and interest in the Leases and Service Contracts are sometimes collectively
referred to herein collectively as the “Property”.

2.             Purchase Price; Deposits.  The total purchase price for the Property
shall be Seventy Million Dollars ($70,000,000) (the “Purchase Price”). 
Thirty Four and Forty Two One-Hundredths percent (34.42%) of the
Purchase Price shall be allocated to the SDC 051 Property.  The remaining Sixty Five and Fifty Eight
One-Hundredths Percent (65.58%) of the Purchase Price shall be allocated the
RET Property.  The Purchase Price shall
be payable as follows:

(a)           Not later than one (1)
business day after the execution of this Agreement by Sellers and Buyer (such
date of full execution being the “Effective Date”),
Buyer shall deposit immediately available funds in the amount of Five Hundred
Thousand Dollars ($500,000) (the “Initial Deposit”)
into an escrow (the “Escrow”) opened
with First American Title Insurance Company at its offices located at 1737
North First Street, Suite 500, San Jose, California 95112, with Liz Zankich as
the designated escrow officer (telephone no.: (408) 451-7989, facsimile no.:
(408) 451-7928) (the “Escrow Holder”).  If the Initial Deposit has not been deposited
into Escrow by the end of the first business day after the Effective Date, this
Agreement shall automatically terminate, and the parties shall be relieved of
any further obligation under this Agreement other than the Surviving
Obligations (defined below), unless the parties agree in writing to an
extension of such time period.  Not later
than one (1) business day after the expiration of the Due Diligence Period
(defined in Section 6(a)(i)), if Buyer has not sooner terminated this
Agreement as allowed elsewhere in this Agreement, Buyer shall deposit
additional immediately available funds in the amount of Three Million Dollars
($3,000,000) into Escrow (the “Additional Deposit”)
(the Initial Deposit and Additional Deposit, plus all interest accrued thereon
while in Escrow, being collectively referred to herein as the “Deposits”). Thirty Four and Forty Two One-Hundredths percent
(34.42%) of the Deposits shall be allocated to the SDC 051 Property.  The remaining Sixty Five and Fifty Eight
One-Hundredths Percent (65.58%) of the Deposits shall be allocated the RET
Property.  Buyer shall, upon delivery of
the Initial Deposit or Additional Deposit, as applicable, to Escrow, instruct
the Escrow Holder to invest such funds in an interest-bearing money market or
savings account with a national banking association or federally chartered
savings and loan association. All interest accruing on the Initial Deposit and
Additional Deposit shall become a part of the Deposits and shall be distributed
in accordance with the terms of this Agreement. The Deposits shall be applied
towards the Purchase Price at Closing unless released from Escrow pursuant to
the terms of this Agreement. The Initial Deposit shall be nonrefundable to
Buyer upon its deposit into Escrow; with the sole exception that the Initial
Deposit shall be refundable to Buyer if (i) this Agreement terminates and
Escrow fails to close due to a Seller’s default under this Agreement, or (ii)
this Agreement 

 3
 

expressly provides that the Initial Deposit must be
returned to Buyer. The Additional Deposit shall become nonrefundable to Buyer
upon expiration of the Due Diligence Period; with the sole exception that the
Additional Deposit shall be refundable to Buyer if (i) this Agreement
terminates and Escrow fails to close due to a Seller’s default under this
Agreement, or (ii) this Agreement expressly provides that the Additional
Deposit must be returned to Buyer.  If
upon termination of this Agreement Sellers are entitled to any portion of the
Deposits, then Buyer shall within one (1) business day thereafter instruct
Escrow Holder to immediately release such portion of the Deposits to Sellers
(which obligation shall survive the termination of this Agreement), and the
parties shall have no further obligations hereunder except for the Surviving
Obligations.  As used in this Agreement, “Surviving Obligations” shall mean all
obligations of Buyer and Sellers which are expressly stated in this Agreement
to survive Close of Escrow or termination of this Agreement.

(b)           In sufficient time for
the Close of Escrow to occur on the Closing Date (defined in Section 3(a)),
Buyer shall deposit into Escrow, in immediately available funds, a sum equal to
the Purchase Price, together with Buyer’s share of prorations and costs of
Escrow as provided in Sections 12 and 13, less the Deposits then held in
Escrow (the “Closing Funds”).

3.             Closing.

(a)           The consummation of the
purchase and sale of the Property (the “Closing” or “Close of Escrow”) shall take place on the Closing Date,
through an escrow established with Escrow Holder (“Escrow”).  The “Closing Date”
shall be May 2, 2007, or such earlier date as the parties may mutually agree
upon (without obligation to do so).   
Each Seller shall deliver possession of the Property owned by such
Seller to Buyer on the Closing Date. 
Close of Escrow shall occur, if at all, only as to all of the Real
Properties which are the subject of this Agreement, it being acknowledged that
all of the Real Properties are being sold as a package, and that the sale of
less than all of the Real Properties is not contemplated or intended pursuant
to this Agreement.

(b)           Prior to Closing, in
sufficient time prior thereto to allow Closing to occur on the Closing Date,
each Seller shall cause to be delivered into the Escrow:

(1)           A Grant Deed in
recordable form properly executed by such Seller, conveying to Buyer such
Seller’s Real Property, in the form and substance of Exhibit I attached
hereto (individually a “Grant Deed” and
collectively the “Grant Deeds”),
incorporating the legal description and APN for such Real Property, which Grant
Deed shall be recorded in the Official Records of Santa Clara County,
California (“Official Records”) at the Closing,
together with a separate statement regarding documentary transfer tax in the
form attached hereto as Exhibit I-1 containing the information
requested therein (individually a “Transfer Tax Statement”
and collectively the “Transfer Tax Statements”),
which Transfer Tax Statement shall not be recorded as a public record in the
Official Records, but shall be filed with the County Recorder of Santa Clara
County, California when the Grant Deed for such Real Property is recorded in
the Official Records;

(2)           Two (2) duly executed
counterpart originals of the Assignment of Intangible Property in the form attached
hereto as Exhibit E assigning and conveying to Buyer 

 4
 

the interest such Seller in the Intangible Property
owned by such Seller, properly executed by such Seller;

(3)           A duly executed Bill of
Sale in the form attached hereto as Exhibit D assigning and conveying to
Buyer the interest of such Seller in the Personal Property owned by such
Seller, properly executed by such Seller;

(4)           Two (2) duly executed
counterpart originals of the Assignment of Leases in the form attached hereto
as Exhibit B assigning and conveying to Buyer the interest of such
Seller in the Leases affecting the Seller’s Real Property, property executed by
such Seller;

(5)           Two (2) duly executed
counterpart originals of an Assignment of Contracts in the form attached hereto
as Exhibit G assigning and conveying to Buyer the interest of such
Seller in the Service Contracts, property executed by Seller, if any such
Service Contracts exist as of the Closing Date;

(6)           An affidavit pursuant
to the Foreign Investment and Real Property Tax Act (individually a “Non-Foreign Status Certificate” and collectively the “Non-Foreign Status Certificates”) and a Form 593-C, each in
a form prescribed by law, properly executed by such Seller (individually a “Form 593-C” and collectively the “Form 593-Cs”);

(7)           Such evidence as the
Title Company may reasonably require as to the authority of the person or
persons executing documents on behalf of Seller;

(8)           An owner’s declaration
in favor of the Title Company certifying to such Seller’s knowledge the status
relating to the existence of leases and mechanics liens affecting the Property,
in form reasonably acceptable to Sellers; and

(9)           Such additional
instruments or documents reasonably required in order to consummate the
purchase and sale of such Seller’s Property in accordance with the terms and
conditions of this Agreement, to the extent consistent with this Agreement,
including without limitation escrow instructions.

On
the Closing Date, each Seller shall arrange to have all keys to its Real
Property which are in such Seller’s possession, and the originals, or if
originals are not available, copies, of all of the Service Contracts and Leases
assigned to Buyer at the Closing, delivered to Buyer at the Real Property.  In addition, on or after the Closing Date, each
Seller shall have the right to notify all tenants of the sale of the Property
owned by such Seller, and the assignment of the Leases and security deposits
and other advance payments under the Leases, to Buyer.

(c)           Prior to Closing, in
sufficient time prior thereto to allow Closing to occur on the Closing Date,
Buyer shall cause to be delivered into the Escrow the following:

(1)           The Closing Funds;

(2)           Two (2) duly executed
counterpart originals of the Assignments of Intangible Property, properly
executed by Buyer;

 5
 

(3)           Two (2) duly executed
counterpart originals of the Assignments of Leases, properly executed by Buyer;

(4)           Two (2) duly executed
counterpart originals of the Assignments of Contracts, property executed by
Buyer;

(5)           Such evidence as the
Title Company may reasonably require as to the authority of the person or
persons executing documents on behalf of Buyer.

(6)           Such additional
instruments or documents reasonably required in order to consummate the
purchase and sale of the Property in accordance with the terms and conditions
of this Agreement, to the extent consistent with this Agreement, including
without limitation escrow instructions.

(d)           If the Closing does not
occur on or before the Closing Date, then either party not then in default may
elect to terminate this Agreement and cancel Escrow by giving written notice of
such termination and cancellation to the other party.  Upon such termination and cancellation,
neither party shall have any further obligations hereunder (other than the
Surviving Obligations, and except as provided in this paragraph below relating
to reservation of rights against a defaulting party) and, unless the Escrow
fails to close due to a default by a Seller or as otherwise expressly provided
in this Agreement, the Deposits shall be paid to and retained by Sellers
(unless and except to the extent this Agreement expressly provides for the
payment of any portion of such funds to Buyer) and all documents and other
instruments shall be returned to the party depositing the same into
Escrow.  If neither party is in default,
then the cost of cancellation of the Escrow shall be shared equally between
Buyer, on the one hand,  and Sellers, on
the other hand, unless otherwise expressly provided in the Agreement.  If only one of the parties hereto is in
default, then such defaulting party shall pay for the entire cost of
cancellation of the Escrow.  The
termination of this Agreement and cancellation of the Escrow, as provided
herein, shall be without prejudice to whatever legal rights, as said rights may
be limited by the terms contained in this Agreement, that Buyer or Sellers may
have against each other arising out of this Agreement and the Escrow.

4.             Inspections.

Subject
to this Section 4 below, until the earlier to occur of the expiration of
the Due Diligence Period or termination of this Agreement, Buyer shall have the
right to enter upon the Real Properties to inspect the Real Properties and the
Personal Property, to conduct tests thereon (including specifically, without
limitation, environmental tests and soil borings) and to review the Property
Materials (as hereafter defined) at its sole cost and expense.  Buyer shall not conduct or allow any
physically intrusive testing of, on or under any of the Real Properties without
first obtaining Sellers’ written consent as to the timing and scope of work to
be performed, which consent shall not be unreasonably withheld. Buyer’s right
to access the Real Properties shall be subject to the confidentiality
requirements set forth in Section 6(a).  In no event shall Buyer have the right to
contact any tenant of the Real Properties or enter any leased or occupied space
without Sellers’ prior consent, which Sellers may withhold in Sellers’ sole
discretion.  All activities of Buyer and
Buyer’s agents, employees, consultants, contractors and representatives
(collectively “Buyer’s Representatives”)
shall be done in a manner that does not 

 6
 

interfere with or disturb the rights of any tenants or
other occupants of the Real Properties, and shall be done in accordance with
any all security requirements of the tenants. Buyer shall keep the Property
free and clear of any and all liens related to Buyer’s inspections and
investigations.  Buyer shall give Sellers
at least two (2) business days prior notice of Buyer’s desire to enter any Real
Property.  If this Agreement terminates
for any reason without Close of Escrow having occurred, then Buyer shall
promptly return to Sellers all materials delivered by Sellers to Buyer.  All entry onto and inspections of the Real
Properties shall be subject to the following:

(a)           The persons or entities
performing work for the Buyer shall have obtained all required licenses and
permits for performing the relevant work on the Real Properties prior to
performing any such work on the Real Properties.  Prior to entry onto any Real Property to
perform any due diligence investigations pursuant to this Agreement, Buyer
shall submit to Sellers a description of the work to be performed for Sellers’
approval. All work done by or on behalf of Buyer shall be conducted in
compliance with all applicable laws and regulations, including laws and
regulations relating to worker safety. If any reports, studies, tests,
documents or information applicable to the environmental condition of any Real
Property arising out of an environmental investigation are required to be
disclosed to a federal, state or local agency or governmental body, then Buyer
agrees that Sellers shall be the party to furnish such documentation to the
applicable governmental agency having jurisdiction over such Real Property and
neither Buyer nor its agents, employees or environmental consultants shall
furnish such information to the applicable governmental agencies unless
required to do so by law or court order. 
If Buyer is required by law or court order to furnish such information
or any other information to governmental agencies or third parties, then to the
extent Buyer can, without violating any legal requirement or court order,
provide prior notice of its intention to furnish such information, Buyer shall
provide reasonable prior notice of same to Sellers and afford Sellers the
opportunity to make comments, pose questions and offer recommendations in
connection with the information and proposed communications. If there is a demand
for such information generated by an environmental investigation by a
governmental agency or by legal process issued by a court of competent
jurisdiction, Buyer shall promptly provide notice of such demand to Sellers and
afford Sellers an opportunity to impose any objections or defenses to such
demand to the extent reasonably possible. 
Sellers shall also be afforded a reasonable opportunity to participate
in all meetings and other communications with any governmental agencies to the
extent possible.

(b)           Prior to entry onto any
Real Property to perform any due diligence investigations pursuant to this
Agreement, Buyer, and each of Buyer’s third party consultants and contractors
entering onto such Real Property, shall have obtained and shall keep in force
during the term hereof a policy or policies of commercial general liability
insurance from an insurer reasonably acceptable to Sellers, providing for a
combined single limit of not less than One Million Dollars ($1,000,000) per
occurrence and aggregate, covering liability to property or persons for its
activities on or about the Real Property, and naming Sellers as additional
insureds; and Buyer’s consultants shall have in effect and shall maintain for
the term hereof professional errors and omissions coverage in the amount that
is customary for reputable consultants in the applicable field.  Proof of the required insurance, reasonably
acceptable to Sellers, shall be delivered to Sellers prior to any entry onto
any Real Property by Buyer or Buyer’s Representatives.

 7
 

(c)           Sellers shall have the
right, at Sellers’ sole cost and expense, to have one (1) or more
representatives of Sellers accompany Buyer and Buyer’s Representatives while
they are on any Real Property pursuant to this Agreement.

(d)           If any Real Property is
damaged in connection with any of Buyer’s or Buyer’s Representatives’
activities pursuant to this Agreement, Buyer, at Buyer’s sole cost and expense,
shall immediately repair such damage and restore such Real Property to its
condition existing immediately prior to such activities.  Until restoration is complete, Buyer shall
take all steps necessary to ensure that any conditions on such Real Property
created by Buyer’s activities do not create any dangerous or unhealthy
conditions on such Real Property.  All
such restoration activities shall be done in a manner that does not interfere
with or disturb the rights of any tenants or other occupants of such Real
Property.

(e)           Buyer shall indemnify,
defend (with counsel reasonably acceptable to Sellers) and hold harmless
Sellers and Sellers’ partners, members, and each of their respective officers,
directors, shareholders, beneficiaries, members, partners, affiliates, agents,
employees and attorneys, and their respective successors and assigns
(collectively, the “Sellers Parties”)
for, from and against any and all claims, damages, liens, suits, causes of
action, legal or administrative proceedings, fines, penalties, judgments,
demands, obligations, costs, liabilities and losses (including mechanics’
liens) and expenses (including, without limitation, reasonable attorneys’ fees)
(collectively “Claims and Liabilities”) to the
extent arising out of any entry or activities on the Property by Buyer or Buyer’s
Representatives, or any breach of Buyer’s obligations under this Section 4
by Buyer or any of Buyer’s Representatives.

(f)            Buyer’s obligations
pursuant to this Section 4 shall survive Close of Escrow or termination
of this Agreement.

5.             Property Materials.  Buyer has received from Seller or other
sources or reviewed the documents relating to such Seller’s Property identified
on Exhibit H attached hereto (such documents, subject to this Section
below, being collectively, the “Property
Materials”). Notwithstanding anything to the contrary contained
herein, the Property Materials shall expressly exclude (i) anything that would
disclose a Seller’s or prior owner’s cost of acquisition of any Real Property,
or cost of construction of any Improvements and related soft costs, any
estimates of costs to repair, replace, remediate or maintain any Real Property,
or any prospective, capital budgets for the Property, (ii) any reports,
presentations, summaries and the like prepared for a Seller, or any of such
Seller’s boards, committees, partners, trustees, beneficiaries, affiliates or
investors in connection with its consideration of the acquisition or
disposition of any Real Property or construction of the Improvements,
including, without limitation, any conditions inspection report, (iii) any
proposals, letters of intent, draft contracts or the like prepared by or for
other prospective purchasers of the Property or any part thereof, (iv) a Seller’s
internal memoranda, attorney-client privileged materials, internal and external
appraisals, and (v) any information which is the subject of a confidentiality
agreement between a Seller and a third party (the items described in clauses
(i), (ii) (iii), (iv) and (v) being collectively referred to as the “Confidential Information”).

 Buyer understands, acknowledges and agrees
that Seller does not make any representation or warranty (and specifically
disclaims any express or implied warranty) as to the 

 8
 

accuracy or
completeness of the Property Materials or any other materials provided to Buyer
or as to the ability of Buyer or any other party to rely thereupon, except as
expressly provided in this Agreement. Buyer covenants, represents and warrants
that Sellers shall not have any liability to Buyer or any of Buyer’s partners,
members, officers, employees, agents, affiliates and representatives in any
manner arising from the use of or reliance on the Property Materials by Buyer
or Buyer’s partners, members, officers, employees, agents, affiliates and/or
representatives.  Buyer further
acknowledges and agrees that it shall be solely Buyer’s responsibility to
conduct investigations of the Real Properties to determine the presence or
existence of any hazardous materials, toxic substances and similar contaminants
and pollutants and to otherwise determine the physical condition and all other
aspects of the Real Properties except as set forth in Section 9(a) of
this Agreement.

6.             Audit.     Buyer has advised Sellers that Buyer must cause to be prepared
approximately one (1) year of audited financial statements (for 2006 and the
first quarter of 2007) in respect of the Property in compliance with the
policies of Buyer and certain laws and regulations, including, without
limitation, Securities and Exchange Commission Regulation S-X. Each Seller
agrees to use reasonable efforts to cooperate with Buyer’s auditors, without
cost to Sellers, 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 as it relates to the approximately one (1) year audit
period: (i) each Seller shall, during normal business hours, allow Buyer’s
auditors reasonable access to such books and records maintained by such Seller
(and such Seller’s manager of the Property) in respect of the Property as
necessary to prepare such audited financial statements; (ii) such Seller shall
use reasonable efforts to provide to Buyer such financial information and
supporting documentation as are necessary for Buyer’s auditors to prepare
audited financial statements; (iii) if Buyer or its auditors require any
information that is in the possession of the party from which a Seller
purchased the Property, such Seller shall contact such prior owner of the
Property and request from such party the information requested by Buyer; and
(iv) each Seller will make available for interview by Buyer and Buyer’s
auditors the manager of the Property or other agents or representatives of such
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. If after
the Closing Date a 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 such Seller shall promptly provide Buyer with a
copy of such audited financial statement, and the foregoing covenant shall
survive Closing.  It shall be a condition
precedent to the obligations of Buyer under this Agreement that Seller shall
not be in default of its covenants set forth in this Section 6 as of the
Closing Date

7.             Conditions to Closing.

(a)           Buyer’s Conditions.  In addition to all other conditions to the
completion of the transaction described in this Agreement, Sellers and Buyer
agree that the Closing of the sale and purchase contemplated by this Agreement
is subject to satisfaction, approval or waiver by Buyer of the matters
specified in this Section 7(a). 
All of the conditions in this Section 7(a) below, other than the
condition relating to the Existing Tenant described in Section 7(a)(3)
below, are solely for the benefit of Buyer and can be unilaterally waived by
Buyer.  The 

 9
 

condition relating
to the Existing Tenant described in Section 7(a)(3)  is for the benefit of both Buyer and Seller
and can be waived only with the consent of both Buyer and Seller.

(1)           Commencing on the date
this Agreement is executed by Sellers and Buyer (the “Effective
Date”) and ending at 5 p.m. California time on March 28, 2007 (the “Due Diligence Period”), Buyer shall have the right to review
and approve the Property Materials and to inspect and approve the physical
condition, prospective use of and all other matters concerning the Property, at
Buyer’s sole cost, including, without limitation, the availability of access,
utility services, zoning, economic viability, environmental risks, safety and
security risks, engineering and soil conditions.

All
information supplied to or made available to Buyer by Sellers, whether before,
on or after the Effective Date, including without limitation the Property
Materials described above, shall be treated by Buyer as confidential
information, and shall be subject to the terms and conditions of that certain
Confidentiality Agreement submitted electronically on behalf of Behringer
Harvard Funds with respect to the Property (the “Confidentiality Agreement”), all of the terms and conditions
of which are hereby incorporated herein by reference, provided that (i) any
reference to Prospective Buyer in the Confidentiality Agreement shall also
include the Buyer hereunder to the extent the Buyer named herein is not the
named party to the Confidentiality Agreement, and (ii) the information set
forth in Section 1(ii) of the Confidentiality Agreement shall be destroyed by
Buyer at Sellers’ request rather than returned to Sellers, and (iii) the term
of the Confidentiality Agreement set forth in Section 7 of the Confidentiality
Agreement shall be amended to expire on the earlier of Close of Escrow or the
date that is one (1) year following the Effective Date of this Agreement.

However,
notwithstanding the foregoing provisions or anything else to the contrary
contained in this Agreement or the Confidentiality Agreement (i) Buyer may
disclose such information to its consultants, attorneys, accountants,
prospective investors and lenders, and others who need to know the information
for the purpose of assisting Buyer in connection with the transaction that is
the subject of this Agreement; (ii) the foregoing covenant of confidentiality
shall not be applicable to any information published by Seller as public
knowledge or otherwise available in the public domain; (iii) Buyer shall be
permitted to disclose such information as may be recommended by Buyer’s legal
counsel in order to comply with all financial reporting, securities laws and
other legal requirements applicable to Buyer, including any required
disclosures to the Securities and Exchange Commission; and (iv) any duty of
confidentiality set forth in this Agreement or in the Confidentiality Agreement
shall terminate upon Closing.

If
Buyer determines within the Due Diligence Period, in Buyer’s sole discretion,
that the Property is not suitable for its purposes, or that it is in the
interest of Buyer to terminate this Agreement for any or no reason, Buyer shall
notify Sellers and the Escrow Holder in writing of the termination of this
Agreement (“Buyer’s Termination Notice”)
prior to the end of the Due Diligence Period. 
Upon receipt by Sellers and the Escrow Holder of Buyer’s Termination
Notice, the Additional Deposit (if then in Escrow) and any interest accrued
thereon shall be refunded to Buyer by the Escrow Holder, the Initial Deposit
and interest accrued thereon shall be released to Sellers unless otherwise set
forth herein, and Sellers and Buyer shall thereupon be released from all
further obligations under this Agreement, other than the Surviving Obligations.
If no Buyer’s Termination Notice has been served upon Sellers and Escrow Holder
within the 

 10
 

time provided in
this Section 7(a)(1), the condition set forth in this Section 7(a)(1)
shall be deemed to have been satisfied or waived by Buyer and Buyer shall no
longer have any right to terminate this Agreement under this Section 7(a)(1).

(2)           Buyer has requested and
each Seller agrees to forward to Hitachi Data Systems Corporation (“Existing Tenant”), the tenant under the Leases affecting the
Real Property, tenant estoppels in the form attached hereto as Exhibit K.  Buyer is aware of the provisions of Section
36 of the Leases which describe the Existing Tenant’s obligations relating to
tenant estoppels.  Sellers shall make
reasonable efforts, at no cost to Seller, to obtain and deliver to Buyer, no
later than five (5) business days prior to the Closing Date (the “Estoppel Return Date”), a tenant estoppel certificate in
substantially the form of Exhibit K attached hereto executed by the
Existing Tenant for each Lease; provided, however, the form of tenant estoppel
certificate shall reflect appropriate changes thereto to conform to specific
requirements in its Lease regarding the form of the tenant estoppel
certificate. An executed tenant estoppel
certificate in the form of Exhibit K (as such form may be changed to
conform to the specific requirements in its Lease regarding the form of
the tenant estoppel certificate) is herein
referred to as a “Tenant
Estoppel”. Seller shall
deliver each Tenant Estoppel to Buyer (regardless of whether it complies with
this Agreement) promptly following Seller’s receipt thereof. Notwithstanding anything
contained herein to the contrary, it shall be a condition precedent to the
obligation of Buyer to consummate the transaction that is the subject of this
Agreement that Seller deliver to Buyer, on or before the Estoppel Return Date,
Tenant Estoppels for both Leases of the Real Properties executed by the
Existing Tenant thereunder in the form of Exhibit K (as such form may be
changed to conform to the specific requirements in its Lease regarding the form
of the tenant estoppel certificate). In the event that Seller is unable to
satisfy the Tenant Estoppel Condition by the Estoppel Return Date, Seller shall
not be in default under this Agreement. However, if the Tenant Estoppel
Condition is not fulfilled as of the Estoppel Return Date, then, for three (3)
business days thereafter, Buyer shall have the option either to (i) waive the
Tenant Estoppel Condition,  (ii) extend
the Closing Date for up to fourteen (14) days to allow Sellers more time to
attempt obtain additional estoppel certificates (provided Sellers shall have no
liability for failure to obtain them); or (iii) terminate
this Agreement, in which event all of the Deposits (the Initial Deposit and the
Additional Deposit and interest accrued thereon) shall be returned to Buyer. If
Buyer elects to extend the Estoppel Return Date pursuant to clause (ii) of the
preceding sentence and the Tenant Estoppel Condition is still not fulfilled on
or before the expiration of the fourteen (14) day extension period, then Buyer
may elect one of the options set forth in clauses (i) and (iii) of the
preceding sentence.

(3)           It is also a condition
precedent to Buyer’s obligation to buy the Property from Sellers that not later
than five (5) business days before the Closing Date (the “Waiver
Return Date”) the Existing Tenant has waived in writing its right to
purchase the Property in connection with the sale to Buyer hereunder pursuant
Section 46 of each of the Leases to which the Existing Tenant has such a right
(entitled “Right of First Offering To Purchase”).  In the event that the Existing Tenant has not
waived in writing its right to purchase the Property by the Waiver Return Date
then all of the Deposits (the Initial Deposit, the Additional Deposit and
interest accrued thereon) shall be returned to Buyer.

(4)           It is also a condition
precedent to Buyer’s obligation to buy the Property from Sellers that the Title
Company (defined in Section 8) is irrevocably committed to 

 11
 

issue the Title Policies (defined in Section
8) to Buyer following the Closing. If Title Company will not irrevocably
commit to issue the Title Policies then all of the Deposits (the Initial
Deposit, the Additional Deposit and interest accrued thereon) shall be returned
to Buyer.

(5)           It is also a condition
precedent to Buyer’s obligation to buy the Property from Sellers that a Seller
shall not be in material default of such Sellers’ obligations under this
Agreement, and that such Seller’s express representations and warranties set
forth in this Agreement continue to be true, correct and unchanged in all material
respects as of the Closing.

(b)           Sellers’ Conditions.  It is a condition precedent to Sellers’
obligation to sell the Property to Buyer that (1) Buyer shall not be in
material default of Buyer’s obligations under this Agreement, and (2) that
Buyer’s express representations and warranties set forth in this Agreement
continue to be true, correct and unchanged in all material respects as of the
Closing, and (3) not later than expiration of the Waiver Return Date the
Existing Tenant has waived in writing its right to purchase the Property in
connection with the sale to Buyer hereunder pursuant to Section 46 of the
Leases (entitled “Right of First Offering To Purchase”).  The conditions described in (i) and (ii) of
this Section 7(b) are solely for the benefit of Sellers and can be
unilaterally waived by Sellers. The condition relating to the Existing Tenant
described in item (3) of this Section 7(b)  is for the benefit of both Buyer and Seller
and can be waived only with the consent of both Buyer and Seller.

8.             Title. Prior to the expiration of
the Due Diligence Period, Buyer shall have completed its review of all title
and survey matters affecting the Real Properties to the extent desired by
Buyer, and Buyer shall have come to agreement with First American Title
Insurance Company (“Title Company”)
on the form and content of the title policies which Buyer desires Title Company
to issue upon the Closing (individually a “Title
Policy” and collectively the “Title
Policies”), and shall obtain whatever other assurances and/or
commitments it desires from Title Company as to title and survey matters. Any
ALTA survey required in connection with the issuance of the Title Policies or
desired by Buyer shall be obtained by Buyer at its cost.  At Closing, title to each Real Property shall
be subject to the following (collectively, the “Permitted Exceptions”): (i) non-delinquent real property taxes
and assessment as of the date of Closing, (ii) the standard exceptions and
exclusions contained in a CLTA standard coverage owner’s policy of title
insurance, or if Buyer elects to obtain ALTA coverage, the standard exceptions
and exclusions contained in an ALTA standard coverage owner’s policy of title
insurance, except to the extent Title Company has agreed to eliminate any such
standard exception or exclusion (iii) liens and encumbrances to which Buyer has
consented or not timely objected as provided below (other than those liens and
encumbrances that Sellers are obligated to release pursuant to the terms of
this Agreement), (iv) liens and encumbrances resulting from the acts of Buyer
or Buyer’s Representatives, (v) all leases and rental agreements in effect with
respect to such Real Property as of the Closing, and the rights of the tenants
thereunder, and (vi) any other exception existing as of the expiration of the
Due Diligence Period. Not later than 5 p.m. California time on the date that is
six (7) business days prior to the expiration of the Due Diligence Period,
Buyer shall deliver to Sellers written notice of any objections to title that
Buyer may have (the “Objected to Exceptions”).  If Buyer fails to deliver such written notice
of objection to Sellers not later than 5 p.m. California time on the date that
is six (7) business days prior to the expiration of the Due Diligence Period,
Buyer shall be deemed to have waived its 

 12
 

right to object to
any title matters affecting such Real Property, all of which shall thereafter
be deemed Permitted Exceptions. If Buyer does timely object in writing to any
title exceptions, each Seller whose Real Property is encumbered by Objected to
Exceptions shall notify Buyer within five (5) business days following the date
of Buyer’s notice of such objections that either (A) such Seller will attempt
to cause the matters objected to be removed from title to such Real Property,
or bonded against, or insured over by the Title Company pursuant to an
endorsement to the Title Policy (as hereinafter defined), or (B) such Seller
will not attempt to cause the matters objected to be removed, bonded or insured
over.  If such Seller does not notify
Buyer of its election within this five (5) business day period (“Seller’s Notice Period for Title Objections”),
such Seller shall be deemed to have elected not to attempt to cause such
matters to be cured or insured over, in which case, Buyer may elect either:

(i)            to terminate this
Agreement, in which event all of the Deposits (the Initial Deposit, the
Additional Deposit and interest accrued thereon) (if then in Escrow) shall be
returned to Buyer as Buyer’s sole remedy hereunder; or

(ii)           to take title as it
then is without any reduction in the Purchase Price, which election must be
made by the end of Due Diligence Period (“Buyer’s Election Period”).
If Buyer does not elect to so terminate this Agreement within Buyer’s Election
Period, then:

(1)           Buyer shall be deemed
to have agreed to accept title as it then is without any reduction in the
Purchase Price;

(2)           All title matters not
removed from title to such Real Property will thenceforth be deemed Permitted
Exceptions; and

(3)           this Agreement shall
remain in full force and effect.

Anything
to the contrary in this Agreement notwithstanding, a Seller shall have no
affirmative obligation hereunder to expend any funds or incur any liabilities
in order to cause any title exceptions to be removed from title to any Real
Property or insured against, except that a Seller shall pay or discharge, or
cause to be removed or bonded or insured against, any mechanic’s or materialman’s
liens or mortgages, deeds of trust or other instruments creating a lien for
borrowed money against all or any part of the Property (other than those caused
by Buyer or Buyer’s Representatives), any lien or encumbrance first created
after the expiration of the Due Diligence Period which are voluntarily created
or assumed by such Seller and not created by or resulting from the acts of
Buyer or other parties not related to Sellers, provided that such lien or
encumbrance does not otherwise constitute a Permitted Exception.  If following the expiration of the Due Diligence
Period, the Title Company discloses new exceptions other than the Permitted
Exceptions, and other than those which a Seller has agreed to insure or bond
against, pay or discharge, then unless Buyer agrees to accept title as it then
is without reduction of the Purchase Price, Buyer may, at its option, terminate
this Agreement, in which event all of the Deposits (the Initial Deposit, the
Additional Deposit and interest accrued thereon) shall be returned to Buyer as
Buyer’s sole remedy under this Agreement.

 13

9.             Representations, Warranties and Covenants.

(a)           Representations By
Sellers.  Except as otherwise
disclosed by any Property Materials or any other documents delivered or made
available to Buyer by or on behalf of Sellers or elsewhere in this Agreement,
SDC 051, as it relates to the Property, and RET, solely as it relates to RET’s
interest in the Property, represents and warrants to Buyer as follows:

(1)           As to a Seller that is
a limited partnership, such Seller is a limited partnership duly organized and
validly existing under the laws of the State of California, is duly authorized
to execute and perform its obligations under this Agreement, and such execution
and performance will not violate any material term of its partnership
agreement.

(2)           As to a Seller that is
a corporation, such Seller is a corporation duly organized and validly existing
under the laws of the State of California, is duly authorized to execute and
perform its obligations under this Agreement, and such execution and
performance will not violate any material term of its articles of incorporation
or bylaws.

(3)           To such Seller’s
knowledge, it has not received any notices of any violation of any governmental
order, laws, regulation, statute, code or ordinance dealing with the use,
construction, operation, safety and/or maintenance of the Property which remain
uncured.

(4)           To such Sellers’s
knowledge, there has been no written demand by any mortgagee, insurance
underwriter or governmental authority for work to be done or other action to be
taken by such Seller which has not been complied with to the satisfaction of
the entity making such demand.  To such
Seller’s knowledge, no defect or condition exists with respect to the Property
which would adversely affect the insurability of the Property.

(5)           To such Seller’s
knowledge, such Seller has not received notice of any pending condemnation,
expropriation, eminent domain, litigation, administrative action or other legal
proceeding affecting all or any portion of the Property, and such Seller has no
knowledge that any such proceeding is contemplated.

(6)           The Leases are in full
force and effect and to such Seller’s knowledge no default on the part of
Seller or any tenant thereunder exists or has been alleged to exist. All
repairs, alterations, and other work required to be performed by Seller under
the Leases have been fully performed and paid for in full by Seller.  Buyer has been advised that Hitachi intends
to cause cooling towers to be replaced, the cost of which shall be shared by
Hitachi and Buyer following the Closing in accordance with the provisions of
the Leases.  Except for any subleases by
the Existing Tenant, there are no leases granting any person a right to occupy
the Property other than the Leases listed on Exhibit J attached hereto
and made a part hereof. To Seller’s knowledge, no tenant of the Property has
paid rent for more than one month in advance of the current month.

(7)           To such Seller’s
knowledge, no tenant under the Leases has asserted any claim or offset which
would in any way affect the collection of rent from such tenant, nor to such
Seller’s knowledge has any tenant given any notice to Seller of its intention
to terminate its tenancy.

 14
 

(8)           To such Seller’s
knowledge, such Seller has not disposed of or otherwise released or allowed to
be released any hazardous or toxic substances, petroleum products, chemicals,
or wastes of any kind on, in, or under the Property in violation of applicable
laws, including any surface waters or groundwater located on such Property, nor
to such Seller’s knowledge has such Seller caused or allowed to be released or
discharged any hazardous or toxic substances, petroleum products, chemicals, or
wastes of any kind on, in, or under any tracts in proximity to the Property,
including the surface or groundwaters thereof, in violation of any applicable
laws.  To such Seller’s knowledge, except
as set forth in the Property Materials or in the Environmental Reports set
forth on Exhibit L, there are no hazardous or toxic substances,
petroleum products, chemicals, or wastes on, in, or under the Property,
including surface or groundwaters, regardless of source or cause, in violation
of applicable laws, and there are no underground storage tanks on the Property.

(9)           To such Seller’s
knowledge, such Seller is currently in compliance with and at all times during
the term of this Agreement (including any extension thereof) shall not
knowingly violate the regulations of the Office of Foreign Asset Control (“OFAC”) of the Department of the
Treasury (including those named on OFAC’s Specially Designated and Blocked
Persons List) and any statute, executive order (including the September 24,
2001, Executive Order Blocking Property and Prohibiting Transactions with
Persons Who Commit, Threaten to Commit, or Support Terrorism), or other
governmental action relating thereto.

(10)         Exhibit F attached
hereto sets forth all Service Contracts in such Seller’s actual possession that
are currently in effect and relate to the Real Property owned by such Seller,
and to Seller’s knowledge such Seller has received no written notice of any
default under any of the Service Contracts which remains uncured.

(11)         The Property Materials
delivered or made available by such Seller for Buyer’s review are complete
copies of such documents in such Seller’s possession.

(12)         Except as disclosed in
the reports prepared by JCP Geologists, an EQE International Company entitled
Property Risk Natural Hazard Disclosure Report and the Property Risk Natural
Hazard Disclosure Executive Summary made available to Buyer as part of the
Property Materials (collectively the “Natural Hazard Disclosure
Reports”), such Seller has no knowledge that its Real Property is
located within one of the natural hazard disclosure zones referred to in the
Natural Hazard Disclosure Reports.

As used in this
Agreement, the phrase “to Seller’s knowledge”, or “to Seller’s actual knowledge”
or similar phrases, means that the facts in question are actually known (as
opposed to imputed, inquiry or constructive knowledge), in the case of SDC 051,
to John Michael Sobrato and Mike Phillips, and in the case of RET, to Jennifer
Rowe, and the phrase “in Seller’s possession” or similar phrases means in the
actual possession of such Seller and located at its offices identified in Section
19, without any duty to investigate or inquiry.  Seller shall have no duty of investigation or
inquiry with respect to any representation or warranty made to the its
knowledge and shall not be charged with “constructive”, “inquiry”, “imputed” or
“deemed” knowledge.  Further, a Seller’s
obligations to disclose matters “known to Seller” or words of like import as
used in this Agreement shall be deemed breached only if, John Michael Sobrato
or Mike Phillips as to SDC 051, and Jennifer Rowe as to RET, had actual
knowledge (as opposed to imputed or 

 15
 

constructive
knowledge) of the existence of such matter not disclosed to Buyer. Buyer has
been advised and acknowledges that RET only recently acquired the RET Property
from SDC 051 as a charitable donation and that RET has only a very limited
knowledge regarding the history and condition of the Property. The
representations and warranties of each Seller set forth in this Section 8.1
shall survive the Close of Escrow only for a period of one (1) year, and such
Seller shall only be liable to Buyer hereunder for a breach of representation
or warranty made by it herein with respect to which a claim is made by Buyer
against such Seller before the end of such one (1) year period. A Seller shall
not have any liability to Buyer as the result of the inaccuracy of any
representation or warranty made by the other Seller. If prior to the Closing,
Buyer obtains knowledge that any representation or warranty of Sellers is
inaccurate and Buyer proceeds with the Closing, Sellers’ warranties shall be deemed
to have been modified as appropriate to address such inaccuracies, so that such
warranties do not contain such inaccuracies.

(b)           Representations By
Buyer.  Buyer represents and warrants
to Sellers as follows:

(1)           Buyer is a Delaware
limited liability company and has duly authorized the execution and performance
of this Agreement, and such execution and performance will not violate any
material term of its limited liability agreement.

(2)           Buyer is acting as
principal in this transaction with authority to close the transaction.  No consent or approval from any party other
than Buyer is required for the execution and delivery of this Agreement by
Buyer or the performance by Buyer hereunder.

(3)           No petition in
bankruptcy (voluntary or otherwise), assignment for the benefit of creditors,
or petition seeking reorganization or arrangement or other action under Federal
or State bankruptcy laws is pending against or contemplated by Buyer.

(c)           Mutual
Representations and Indemnity.  Each
party represents and warrants to the other that it has had no dealings with any
real estate broker, agent or finder in connection with the negotiation of this
Agreement, except Erik W. Doyle, Mark Schmidt and Jerry Inguagiato of CB
Richard Ellis (“Sellers’ Broker”),
representing Sellers.  Sellers shall only
be required to pay a real estate commission or fee in connection with this
transaction to Sellers’ Broker in accordance with the terms and conditions of a
separate written commission agreement between Sellers and Sellers’ Broker. In
no event shall a Seller have any liability for the payment of any brokerage
commission, broker’s fee, finder’s fee, commission or similar compensation in
connection with this transaction if escrow fails to close for any reason,
including a Seller’s default.  In the
event of a claim for broker’s fee, finder’s fee, commission or other similar
compensation in connection herewith, Buyer, if such claim is based upon any
agreement alleged to have been made by Buyer, hereby agrees to indemnify and
defend with counsel reasonably acceptable to Sellers and hold Sellers and the
Sellers Parties harmless against any and all Claims and Liabilities which
Sellers or any Sellers Parties may sustain or incur by reason of such
claim.  In the event of a claim for
broker’s fee, finder’s fee, commission or other similar compensation in
connection herewith, a Seller, if such claim is based upon any agreement
alleged to have been made by such Seller, hereby agrees to indemnify and defend
with counsel reasonably acceptable to Buyer and hold Buyer and Buyer’s
affiliates, its and their officers, agents, servants, employees, successors and
assigns harmless against any and all Claims and 

 16
 

Liabilities which
Buyer may sustain or incur by reason of such claim.  The provisions of this Section 9(c)
shall survive the Close of Escrow or termination of this Agreement.

(d)           Covenants of Sellers.  Each Seller hereby agrees as follows:

(1)           After the Effective
Date and prior to the Closing, no part of the Property owned by such Seller, or
any interest therein, will be sold or otherwise transferred without Buyer’s
prior written consent, other than normal repairs, replacements and consumption
in the ordinary course of the operation and management of the Property.  None of the Personal Property currently
located in Building 800 shall be removed.

(2)           Such Seller may apply
all or any portion of any security deposits then held by such Seller toward any
loss or damage incurred by such Seller by reason of any defaults by tenants to
the extent allowed under applicable law and my exercise any rights or remedies
available to such Seller with respect to defaults by tenants.  Such Seller shall not be required to notify
Buyer of any such action, nor shall such action affect the obligations of Buyer
under this Agreement in any manner or entitle Buyer to any reduction in the
Purchase Price or any credit or allowance. 
Such Seller agrees not to modify or terminate any existing Lease or
enter into a new lease for any portion of the Real Property owned by such
Seller without Buyer’s consent, which consent may be withheld in Buyer’s sole
discretion. Between the Effective Date and the Closing Date, a Seller shall not
collect any rent for more than one (1) month in advance, unless consistent with
customary practices in the area of the property in connection with new leases
(such as “first and last month’s rent”), and except with respect to recovery of
future rents in any legal action instituted against any tenant.

(3)           Until the Closing, such
Seller shall operate and maintain the Property in the manner in which it is
being operated and maintained on the Effective Date, including, without
limitation, renewal or termination of any Service Contracts (except with
respect to any utility contracts, which shall require Buyer’s written consent
to any renewal or termination by Seller of such contracts, which approval shall
not be unreasonably withheld).   Subject
to the foregoing, each Seller shall be entitled to enter into new Service
Contracts from and after the Effective Date, provided any new Service Contract
entered into by such Seller shall be terminable on thirty (30) days prior
notice, without penalty.

10.           As Is.  Buyer acknowledges and agrees that prior to
the end of the Due Diligence Period, Buyer and its representatives will have
been afforded sufficient opportunity to make and complete such review of the
Property Materials and any other documents relating to the Property which have
been delivered or made available to Buyer, to perform its own independent
economic analysis of the Property, and to make and complete such inspections of
the Property and matters related thereto as Buyer and its representatives
desire, including, without limitation, governmental laws and regulations to
which the Property is subject, and Buyer shall accept the Property upon the
basis of Buyer’s own review and determination of all matters pertaining to the
Property, except as set forth in the Sellers’ express representations and
warranties set forth in this Agreement (all of which shall be subject to the
express limitations and conditions set forth in this Agreement, and being
collectively the “Sellers’ Representations”).
Buyer acknowledges and agrees that the Property is to be sold and conveyed to
and accepted by Buyer in an “AS IS AND WITH ALL FAULTS” condition with all
faults, except as set forth in Sellers’ Representations.  

 17
 

Buyer further
acknowledges that prior to the end of the Due Diligence Period it will have
reviewed and be knowledgeable of the matters described in the Property
Materials and all other documents delivered or made available to Buyer or any
of the Buyer’s Representatives, and that Buyer will acquire the Property
subject to all matters described in such documents. Sellers make no
representation or warranty as to the accuracy or completeness of the Property
Materials or any other documents delivered or made available to Buyer or Buyer’s
Representatives except as expressly provided in Section 9(a)(11)).
Buyer acknowledges that the Property Materials provided may not constitute all
documents in a Seller’s files, and that there may be documents in locations
other than a Seller’s office identified in Section 19 or which a Seller
have not located or of which they are unaware, but that Sellers have no
obligation of make inquiry, investigate or search any such files or
documents.  Buyer acknowledges that some
or all of such documents have been obtained by a Seller from previous owners or
users of the Property or other sources and Sellers make no representation or
warranty as to the reputation or reliability of the persons or entities
preparing such documents.  Buyer further
acknowledges that, notwithstanding that Sellers have delivered or made any
documents available for Buyer’s review, Buyer will make its own investigation
relative to the Property and will rely on its own investigation in determining
the suitability of the Property for its use. 
Without limiting the foregoing, Buyer shall be responsible for obtaining
from the Escrow Holder or Title Company any and all documents relating to the title
of the Property, for obtaining from the City any City development, zoning or
land use approvals, and for obtaining from applicable governmental and law
enforcement agencies such information relative to law enforcement, criminal
activity, safety and security, if it desires such information.  Sellers do not make any representations or
warranties of any kind whatsoever, either express or implied or arising by
operation of law, with respect to the Property or any of such related matters,
including any warranty of condition, habitability, merchantability, suitability
or fitness for a particular purpose or otherwise, except as expressly provided
in this Agreement.  In particular, but
without limiting the foregoing, Sellers make no representations or warranties
with respect to the use, condition, title, occupation or management of the
Property, economic viability, value, safety or security issues relating to the
Property, compliance with applicable statutes, laws, codes, ordinances,
regulations or requirements relating to leasing, zoning, subdivision, planning,
building, fire, safety, health or environmental matters, compliance with
covenants, conditions and restrictions (whether or not of record), other local,
municipal, regional, state or federal requirements, or other statutes, laws,
codes, ordinances, regulations or requirements, except as set forth in Sellers’
Representations.  Buyer acknowledges that
it is entering into this Agreement on the basis of Buyer’s own investigation of
the physical and environmental conditions of the Property and all other matters
affecting the Property, including without limitation mold and subsurface or
latent conditions, and Buyer assumes the risk that adverse physical and
environmental conditions may not have been revealed by its investigations,
except as set forth in Sellers’ Representations.

11.           Release.  Buyer shall rely solely upon Buyer’s own
inspection of the Property in determining the Property’ physical condition and
other matters relating to the Property. 
Except as expressly set forth in this Section below, effective
automatically as of the Closing, Buyer, for itself, its affiliates, successors
and assigns and subsequent owners of the Property, hereby waives, releases,
remises, acquits and forever discharges Sellers and the Sellers Parties of and
from any Claims and Liabilities whatsoever, direct or indirect, known or
unknown, which Buyer now has or which Buyer may have in the future on account
of or in any way arising out of or in connection with the Property, including,
without limitation, the known or unknown physical or 

 18
 

environmental
condition of the Property (including, without limitation, any contamination in,
on, under or adjacent to the Property by any solid hazardous or toxic
substance, material or waste or mold), or any federal, state or local law,
ordinance, rule or regulation applicable thereto, including, without
limitation, the Toxic Substances Control Act, the Comprehensive Environmental
Response, Compensation and Liability Act, and the Resource Conservation and
Recovery Act, .   Buyer, for itself, its
affiliates, successors and assigns and subsequent owners of the Property, fully
understands and expressly waives the benefits of Section 1542 of the California
Civil Code, with respect to the matters described in this Section 11;
Section 1542 of the California Civil Code provides as follows:

“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE
CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF
EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY
AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.”

In
this connection and to the extent permitted by law, Buyer hereby agrees,
represents and warrants that Buyer realizes and acknowledges that factual
matters now unknown to it may have given or may hereafter give rise to causes
of action, claims, demands, debts, controversies, damages, costs, losses and
expenses and other Claims and Liabilities which are presently unknown,
unanticipated and unsuspected, and Buyer further agrees, represents and
warrants that the waivers and releases herein have been negotiated and agreed
upon in light of that realization and that Buyer nevertheless hereby intends to
release, discharge and acquit Sellers and the Sellers Parties from any such unknown
causes of action, claims, demands, debts, controversies, damages, costs, losses
and expenses and other Claims and Liabilities which might in any way be
included as a material portion of the consideration given to Sellers by Buyer
hereunder; with the sole exception that the foregoing release shall not apply
with respect to Sellers’ Representations or any obligation of the Sellers which
this Agreement expressly states survives the Closing, but all of which shall be
subject to the limitations and conditions expressly set forth in this
Agreement.

Sellers
have given Buyer material concessions regarding this transaction in exchange
for Buyer agreeing to the provisions of this Section 11.  Sellers and Buyer have each initialed this Section
11 to further indicate their awareness and acceptance of each and every
provision hereof; provided, however that failure of any party to initial this Section
11 below shall not invalidate this Section 11 nor any other
provision of this Agreement.

	
  

  	
  SELLERS

  	
   

  	
  BUYER

  	
   

  
	
   

  	
  SDC 051:

  	
  /s/ JMS

  	
   

  	
   /s/ JLD

  	
   

  
	
   

  	
   

  
	
   

  	
  RET:

  	
  /s/ PH

  	
   

  	
   

  
										

 

This Section 11
shall survive the Close of Escrow.

 19
 

12.           Prorations.

(a)           Subject to this Section
12 below, all revenues and expenses of the Property, including without
limitation real property taxes, special taxes, assessments and utility fees
and/or deposits, shall be prorated and apportioned between Buyer, on the one
hand, and Sellers, on the other hand, as of the Closing Date, so that Sellers
bears all expenses with respect to the Property, and has the benefit of all
income with respect to the Property, through and including the date immediately
preceding the Closing Date. If prior to the Close of Escrow a Seller has
commenced any contest or filed any objection with any applicable taxing authority
as to real property taxes and assessments attributable to its Real Property for
the period prior to the Closing Date, such Seller shall have the right to
continue such proceeding following the Close of Escrow and any refunds
attributable to any period prior to the Closing Date shall be paid to and
retained by such Seller and Buyer shall have no interest therein. To the extent
that Buyer is required by law to participate in any such tax contest, Buyer
agrees to reasonably cooperate with such Seller in such proceeding.

(b)           If, at the time of
Closing, any portion of the Property is affected by an assessment or other
charge, whether for taxes or bonds, or interest thereon, which is or may become
payable in installments, and an installment payment of such assessment is then
a lien, then such installment shall be prorated as of the Closing Date.  All installments not yet due whether or not
the same have been prepaid shall not be prorated and Buyer shall assume such
bonds or assessments.  Any prepaid
assessments made in advance of its due date shall be credited to the Seller of
the applicable Real Property.  In
addition, Buyer shall assume any and all future bonds, assessments, special
taxes, fees or charges applicable to the Property for liabilities now or hereafter
imposed by any governmental authority (collectively referred to as “Governmental Requirements”) including, without limitation,
any such Governmental Requirements imposed by the City, and those for (i) local
assessment or improvement districts, (ii) any special tax assessments, (iii)
traffic mitigation improvements (iv) park and recreation fees, and/or (v) any
other public facility infrastructure or traffic mitigation required or imposed
by the City.  Buyer shall assume all such
bonds or future assessments without offset or adjustment. Sellers and Buyer
acknowledge that the Property may be subject to supplemental taxes due as a
result of change of ownership taking place through this Escrow, with any
additional taxes as a result thereof to be paid by Buyer.  Any supplemental taxes due to events
occurring prior to the Closing shall be prorated as of the Closing.  Any necessary adjustment due either party on
receipt of a supplemental tax bill will be made by the parties outside of this
Escrow within the time required by this Section 12 below.

(c)           Rent and other charges
under the Leases shall be prorated as of the Closing Date only to the extent
such monies have actually been collected by a Seller.  Rents and other charges under the Leases
which are delinquent as of the Closing will not be prorated, and rents and
other amounts received by Buyer after the Closing from a tenant owing such
delinquent rent or other charges will be applied in the following order:  (i) to Buyer’s actual out-of-pocket costs of
collection incurred with respect to such amounts collected; (ii) to rents due
from such tenant for the month in which such payment is received by Buyer;
(iii) to rents attributable to any period after the Closing which are past due
on the date of receipt; and (iv) to rents and other charges delinquent as of
the Closing (and Buyer promptly shall remit such amounts to the Seller of the
applicable Real Property for which rents are collected, indicating which Real
Property 

 20
 

such amounts are attributable to).  Buyer shall use commercially reasonable
efforts to collect any such delinquent rents; provided, however, Buyer has no
obligation to institute legal proceedings, including an action for unlawful
detainer, against a tenant owing delinquent rents. The amount of all unapplied
refundable security deposits under the Leases and any unapplied prepaid rents,
will be credited to Buyer at Closing, or at the applicable Seller’s option by
cash payment deposited into Escrow prior to the Closing. Each Seller shall have
the right to review Buyer’s books and records relating to the Real Property
following Closing to verify any amounts owed to such Seller pursuant to this subsection
(c), which books and records shall be made available to such Seller at such
location designated by Buyer in writing to Seller located within Santa Clara
County, California, on no less than two (2) business days notice.

(d)           If any of the items to
be prorated as of Closing cannot be finally determined as of Closing, the
prorations shall be made at Closing based on the last available information,
and post-closing adjustments between Buyer, on the one hand, and the
appropriate Seller, on the other hand, shall be made within twenty (20) days
after the date that the actual amounts are determined, provided that as to all
items of proration other than real property taxes and assessments and
delinquent rents reasonable proof of the amount owed is delivered to the party
owing such amount not later than ninety (90) days after the Close of Escrow,
and if payment is not made within this twenty (20) day period the party owing
such sums shall pay interest thereon, at the rate of ten percent (10%) per
annum, from date of delivery of the bill to the non-paying party to the date of
payment. The ninety (90) day limitation described in this subsection (d)
above shall not apply with respect to real property taxes and assessments or
delinquent rents.

(e)           In order to determine
if any post closing adjustments or payments are required pursuant to this Section
12, Buyer shall upon reasonable advance notice from a Seller after the
Close of Escrow make Buyer’s books and records relating to the Property
available for such Seller’s review at the Real Property, which obligation shall
survive the Close of Escrow.

13.           Transfer Taxes; Title Charges; Other Closing
Costs.  If this transaction is
terminated by Buyer prior to the expiration of the Due Diligence Period for any
reason other than Seller’s default hereunder, Buyer shall pay all escrow costs
billed by the Escrow Holder and Title Company. If this transaction closes as
provided in this Agreement, (i) Seller shall pay all escrow fees in connection
with the sale, that portion of the premium for the Title Policy to the extent
attributable to standard coverage in the amount of the Purchase Price without
endorsements, and county transfer taxes, (ii) Buyer shall pay that portion of
the premium for the Title Policy to the extent not required to be paid by
Seller pursuant to (i) immediately above, and (iii) all other Closing costs, if
any, shall be allocated between Seller and Buyer in accordance with the custom
in Santa Clara County, California. Each party shall pay its own attorneys’ fees
except as otherwise expressly provided in this Agreement.

14.           Disbursement of Funds.  On the Close of Escrow, Escrow Holder shall
be instructed to disburse the Purchase Price, less Sellers’ share of prorations
as determined pursuant to Section 12 and Sellers’ share of costs of
Escrow pursuant to Section 13, in immediately available funds, as
directed by Sellers and in accordance with the price and deposit allocations
required by this Agreement.

 21
 

15.           Delivery of Documents.  Escrow Holder shall be instructed to, upon
the Close of Escrow, deliver all instruments and documents as follows:

(a)           Escrow Holder shall be instructed
to deliver to each Seller the following as it relates to such Seller’s Real
Property :

(i)            A copy of the recorded
Grant Deed, showing recording information, and certified by the Escrow Holder
as being a true and complete copy of the Grant Deed recorded in the Official
Records;

(ii)           A copy of the Transfer
Tax Statement, Non-Foreign Status Certificate, and Form 593-C;

(iii)          One fully executed
original of the Bill of Sale, Assignment of Intangibles, Assignment of Leases
and Assignment of Contracts;

(iv)          The Purchase Price
allocable to such Real Property, less costs and prorations chargeable to Seller
with respect to such Real Property pursuant to this Agreement; and

(v)           A copy of all other
documents deposited into Escrow.

(b)           Escrow Holder shall be
instructed to deliver to Buyer following the Close of Escrow the following:

(i)            A copy of the recorded
Grant Deeds, showing recording information, and certified by the Escrow Holder
as being a true and complete copy of the Grant Deeds recorded in the Official
Records;

(ii)           A copy of the Transfer
Tax Statements;

(iii)          One fully executed
original of the Bills of Sale, Assignments of Intangibles, Assignments of
Leases, Assignments of Contracts, Non-Foreign Status Certificates, and Form
593-Cs;

(iv)          The Title Policies; and

(v)           A copy of all other
documents deposited into Escrow.

16.           Condemnation. If between the date of
this Agreement and the Closing Date any condemnation or eminent domain
proceedings are initiated which would result in the taking of any material part
of any Real Property, then Buyer may terminate this Agreement by written notice
to Sellers. A Seller shall promptly notify Buyer in writing upon receiving
written notice of the commencement or occurrence of any condemnation or eminent
domain proceedings affecting its Real Property. 
If such proceedings would result in the taking of any material part of
any Real Property, Buyer shall then notify Sellers, within ten (10) business
days after Buyer’s receipt of a Seller’s notice (but in no event later than the
Closing Date), whether or not Buyer elects to terminate this Agreement.  If Buyer elects not to terminate this
Agreement or fails to make an 

 22
 

election within
such ten (10) business day period or prior to the Closing Date, whichever is
earlier, then Buyer shall be deemed to have elected to proceed with the Closing
without any reduction to the Purchase Price, in which event the Seller of such
Real Property shall assign to Buyer at Closing all of such Seller’s right,
title and interest in and to any award made in connection with such
condemnation or eminent domain proceedings (after deducting therefrom all of
such Seller’s Condemnation Costs), or if such payment has been received by such
Seller such payment (less such Seller’s Condemnation Costs) shall be credited
to Buyer at the Closing, and Closing shall be delayed, if necessary, until the
later to occur of (i) the Closing Date, or (ii) five (5) days after the
expiration of the ten (10) business day period. 
If this Agreement is terminated in accordance with this Section 16,
then all of the Deposits (the Initial Deposit, the Additional Deposit and
interest accrued thereon) shall be refunded to Buyer by the Escrow Holder, and
Sellers and Buyer shall thereupon be released from all further obligations
under this Agreement other than the Surviving Obligations.  As used in this Section 16 “Seller’s Condemnation Costs” shall mean all
costs and expenses incurred by a Seller in connection with the condemnation or
eminent domain proceeding, and any portion of the award in a temporary taking
that is allocable to loss of use of the Property prior to the Closing. As used
in this Section 16, a taking shall be deemed to affect a “material part
of the Real Property” if the value of the Real Property taken is more than Five
Percent (5%) of the portion of the Purchase Price allocable to the Real
Property and the Property associated with such Real Property.

17.           Risk of Loss. If prior to the
Closing, the Improvements, or any part thereof, are materially damaged or
destroyed, Buyer has the right, exercisable by giving written notice to Sellers
within thirty (30) days after receiving written notice of such damage or
destruction (and if necessary the Closing Date shall be extended to give the
parties time to make the election), either (A) to terminate this Agreement, in
which case all of the Deposits (the Initial Deposit, the Additional Deposit and
interest accrued thereon) shall be returned to Buyer, and any other money or
documents in escrow shall be returned to the party depositing the same, and
neither party shall have any further rights or obligations under this Agreement
other than the Surviving Obligations, or (B) to accept the Property in its then
condition and to proceed with the Closing without any abatement or reduction in
the Purchase Price and receive an assignment at the Closing of all of the
affected Seller’s right to any insurance proceeds payable by reason of such
damage or destruction (after deducting therefrom all of such Seller’s Casualty
Costs), and Buyer shall receive a credit at Closing for any deductible amounts
under such insurance policies.  A failure
by Buyer to notify Sellers in writing within such thirty (30) day period will
be deemed an election to proceed under clause (B) above.  If Buyer elects (or is deemed to elect) to
proceed under clause (B) above, then thereafter, the Seller of the affected
Real Property shall not compromise, settle or adjust any claims to such
insurance proceeds without Buyer’s prior written consent, which consent shall
not be unreasonably withheld or delayed. For the purpose of this Section 17,
damage to the Real Property is deemed to involve a material portion thereof if
the reasonably estimated cost of restoration or repair of such damage exceeds
Five Percent (5%) of the portion of the Purchase Price allocable to such Real
Property and the Property associated therewith. 
If prior to the Closing, any non-material portion of the Property is
damaged, Buyer shall accept the Property in its then condition (without any
abatement or reduction in the Purchase Price) and proceed with the Closing, in
which case Buyer is entitled to an assignment at the Closing of all the
affected Seller’s rights to any insurance proceeds arising from such damage to
the Property (less all of such Seller’s Casualty Costs), and Buyer shall
receive a credit for any deductible amounts under such insurance policies.  If any such non-material damage occurs, the 

 23
 

Seller of the
affected Real Property shall not compromise, settle or adjust any claims to
such insurance proceeds, without Buyer’s prior written consent, which consent
shall not be unreasonably withheld or delayed. 
The Seller of any affected Real Property shall give Buyer notice of any
damage or destruction of such Real Property promptly after such Seller obtains
knowledge thereof. As used in this Section 17 “Seller’s Casualty Costs” shall mean all
costs and expenses incurred by a Seller in connection with the negotiation
and/or settlement of any casualty claim, and the proceeds of any rental loss,
business interruption or similar insurance that are allocable to the period
prior to the Closing.

18.           Default.

(a)           DEFAULT BY BUYER;
LIQUIDATED DAMAGES.

IF
THE SALE OF THE PROPERTY IS NOT CONSUMMATED SOLELY BECAUSE OF BUYER’S DEFAULT
UNDER THIS AGREEMENT, ESCROW HOLDER SHALL BE INSTRUCTED BY SELLERS TO CANCEL
THE ESCROW, SELLERS SHALL THEREUPON BE RELEASED FROM SELLERS’ OBLIGATIONS
HEREUNDER, AND AS LIQUIDATED DAMAGES HEREUNDER, THE DEPOSITS (DEFINED IN SECTION
2(a)) SHALL BE PAID TO AND RETAINED BY SELLERS AS LIQUIDATED DAMAGES,
SUBJECT TO THIS SECTION BELOW.  IN SUCH
EVENT, BUYER SHALL DELIVER TO SELLERS ALL OF THE MATERIALS REQUIRED TO BE
DELIVERED TO SELLERS PURSUANT TO SECTION 4 AND BUYER SHALL PAY ALL
TITLE, SURVEY AND ESCROW CANCELLATION CHARGES, WHICH OBLIGATIONS SHALL SURVIVE
THE TERMINATION OF THIS AGREEMENT.  THE
PARTIES ACKNOWLEDGE THAT SELLERS’ ACTUAL DAMAGES IN THE EVENT OF A DEFAULT BY
BUYER WOULD BE EXTREMELY DIFFICULT OR IMPRACTICABLE TO DETERMINE.  THEREFORE, BY PLACING THEIR SIGNATURES OR
INITIALS BELOW, THE PARTIES ACKNOWLEDGE THAT THE DEPOSITS (DEFINED IN SECTION
2(a)), THE ACTUAL TITLE, SURVEY AND ESCROW CANCELLATION CHARGES AND BUYER’S
DELIVERY OF THE MATERIALS DESCRIBED IN SECTION 4 HEREOF HAVE BEEN AGREED
UPON, AFTER NEGOTIATION, AS REASONABLE LIQUIDATED DAMAGES PURSUANT TO THE TERMS
HEREOF, CALIFORNIA CIVIL CODE SECTIONS 1671 AND 1677 AND ANY OTHER APPLICABLE
LAW, AND SHALL CONSTITUTE SELLERS’ SOLE AND EXCLUSIVE REMEDY AGAINST BUYER IN
THE EVENT OF A DEFAULT ON THE PART OF BUYER (EXCEPT AS TO THE SURVIVING
OBLIGATIONS AS DEFINED IN THIS SECTION BELOW, WHICH SHALL BE SUBJECT TO THE
TERMS AND CONDITIONS OF THIS SECTION BELOW). SELLER WAIVES ALL OTHER CLAIMS FOR
DAMAGES OR REMEDIES AT LAW OR IN EQUITY INCLUDING ANY REMEDY OF SPECIFIC
PERFORMANCE AND ANY OTHER RIGHTS SELLER MAY OTHERWISE HAVE PURSUANT TO SECTION
1680 OR SECTION 3389 OF THE CALIFORNIA CIVIL CODE, EXCEPT AS IT RELATES TO THE
SURVIVING OBLIGATIONS. THE PAYMENT OF SUCH AMOUNT AS LIQUIDATED DAMAGES IS NOT
INTENDED AS A FORFEITURE OR PENALTY WITHIN THE MEANING OF CALIFORNIA CIVIL CODE
SECTIONS 3275 OR 3369, BUT IS INTENDED TO CONSTITUTE LIQUIDATED DAMAGES.  NOTWITHSTANDING ANYTHING TO THE CONTRARY
HEREIN CONTAINED, BUYER AND SELLERS ACKNOWLEDGE AND AGREE THAT IN THE EVENT OF
A DEFAULT BY BUYER, BUYER’S SURVIVING OBLIGATIONS SHALL 

 24
 

NOT BE LIMITED,
IMPAIRED OR OTHERWISE AFFECTED BY ANY TERMINATION OF THIS AGREEMENT OR ANY
LIQUIDATED DAMAGES RECEIVED BY SELLERS PURSUANT TO THIS SECTION 18(a) AS
A RESULT OF BUYER’S DEFAULT. AS TO THE SURVIVING OBLIGATIONS, SELLERS SHALL
RETAIN THE RIGHT TO SEEK AND OBTAIN ANY AND ALL ADDITIONAL REMEDIES AVAILABLE
LAW AND IN EQUITY AND SHALL NOT BE LIMITED OR AFFECTED BY THE LIQUIDATED
DAMAGES RETAINED BY SELLERS PURSUANT TO THIS SECTION 18(a).  THE PROVISIONS OF THIS SECTION 18(a)
SHALL SURVIVE THE TERMINATION OF THIS AGREEMENT.

	
  SELLERS’ INITIALS: SDC 051:

  	
  /s/ JMS

  	
   

  	
  RET:

  	
  /s/ PH

  	
   

  
	
   

  
	
  BUYER’S INITIALS

  	
  /s/ JLD

  	
   

  
							

 

(b)           Default or Breach by
a Seller; No Joint Liability.

If
the sale of the Property is not consummated because of one or more Seller’s
default under this Agreement, Buyer’s sole remedy shall be either one or the
other of the following: (i) to specifically enforce the Sellers’ obligations to
convey the Property under this Agreement, or (ii) to terminate this Agreement,
upon which termination Buyer’s sole remedy against a Seller shall be the return
of all of the Deposits (the Initial Deposit, the Additional Deposit and
interest accrued thereon).  In no event
shall a Seller have any obligation or liability whatsoever to Buyer for any
damages that Buyer may have sustained by reason of any Seller’s default or
breach hereunder, Buyer’s remedies being limited solely and exclusively to the
alternative remedies set forth above in this Section 18(b).  Without limiting the foregoing, Buyer
acknowledges and agrees that a Seller shall have no liability to Buyer for any
consequential damages sustained by Buyer (including without limitation loss of
rents and profits) under any circumstance resulting from any cause, including
without limitation, the acts or omissions of any Seller or Sellers Parties. The
provisions of this Section 18(b) shall survive the Close of Escrow or
the termination of this Agreement.  Buyer
acknowledges and agrees that each individual signing this Agreement on behalf
of a Seller is acting solely on behalf of the entity for which he is signing,
and that such individual shall not have any personal liability under this
Agreement, any recovery against a Seller hereunder being limited to such Seller’s
interest in its Property.  In no event
shall one Seller have any liability arising from or relating to (A) the other
Seller’s Property, or (B) the other Seller’s obligations or defaults under this
Agreement.

19.           Notice.  All notices required or permitted hereunder
shall be in writing and shall be served on the parties at the following
address:

 25
 

 

	
  If to Sellers:

  	
  Sobrato Development Company No. 051

  
	
   

  	
  10600 North
  DeAnza Boulevard, Suite 200

  
	
   

  	
  Cupertino, CA
  95014

  
	
   

  	
  Attention: John
  Michael Sobrato

  
	
   

  	
  Facsimile No.
  (408) 446-0583

  
	
   

  	
   

  
	
   

  	
  and

  
	
   

  	
   

  
	
   

  	
  Real Estate
  Trust at Community Foundation Silicon Valley

  
	
   

  	
  60 South Market
  Street, Suite 1000

  
	
   

  	
  San Jose, CA
  95113

  
	
   

  	
  Attention:
  Jennifer Rowe

  
	
   

  	
  Facsimile No.
  (408) 278-0280

  
	
   

  	
   

  
	
  With a copy to:

  	
  Berliner Cohen

  
	
   

  	
  Ten Almaden
  Boulevard, 11th Floor

  
	
   

  	
  San Jose, CA
  95113

  
	
   

  	
  Attention:
  Kathleen K. Siple

  
	
   

  	
  Facsimile No.
  (408) 998-5388

  
	
   

  	
   

  
	
   

  	
  and

  
	
   

  	
   

  
	
   

  	
  Hoge, Fenton,
  Jones & Appel, Inc.

  
	
   

  	
  60 South Market
  Street, Suite 1400

  
	
   

  	
  San Jose, CA
  95113

  
	
   

  	
  Attention: David
  W. Mitchell

  
	
   

  	
  Facsimile No.
  (408) 287-9501

  
	
   

  	
   

  
	
  If to Buyer:

  	
  Harvard Property Trust, LLC

  
	
   

  	
  c/o Behringer
  Harvard Funds

  
	
   

  	
  15601 Dallas
  Parkway, Suite 600

  
	
   

  	
  Dallas, Texas
  75001

  
	
   

  	
  Attention: Scott
  Ryan

  
	
   

  	
  Facsimile No.
  (866) 655-3610

  
	
   

  	
   

  
	
  With a Copy to:

  	
  Powell Coleman & Arnold LLP

  
	
   

  	
  8080 N. Central
  Expressway, Suite 1380

  
	
   

  	
  Dallas, Texas
  75206

  
	
   

  	
  Attention: Carol
  D. Satterfield

  
	
   

  	
  Facsimile No.
  (214) 373-8768

  

 

Any
such notices shall be either (a) sent by certified mail, return receipt
requested, in which case notice shall be deemed delivered three (3) business
days after deposit, postage prepaid in the U.S. mail, (b) by telecopier, in
which case notice shall be deemed delivered when the transmitting telecopier
machine has confirmed that the notice has been completed or sent without error,
(c) by personal delivery, or (d) sent by a nationally recognized overnight
courier, in which case notice shall be deemed delivered one (1) business day
after deposit with such 

 26
 

courier.  The above addresses may be changed by written
notice to the other party; provided, however, that no notice of a change of
address shall be effective until actual receipt of such notice.

20.           Time of Essence.  Time is of the essence of this Agreement.

21.           Governing Law and Venue. This Agreement
shall be governed by and construed in accordance with the laws of the State of
California.

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

23.           Captions.  The captions in this Agreement are inserted
for convenience of reference and in no way define, describe or limit the scope
or intent of this Agreement or any of the provisions hereof.

24.           Assignability.  Buyer may
assign its rights under this Agreement to an Affiliate without the prior
written consent of Seller, provided that at least five (5) business days
prior to the then scheduled Closing Date Buyer has given Sellers written notice
of the assignment (including the full legal name and address of the proposed
assignee and other information necessary for an alternate set of closing
documents be prepared and executed naming the proposed assignee), together with
a fully executed copy of the assignment.  For purposes of this Section 24, the
term “Affiliate” shall
mean: (a) an entity that controls, is controlled by, or is under common control
with Buyer; (b) any partnership in which Buyer or Buyer’s controlling member is
the general partner; (c) any fund or entity sponsored by Buyer; or (d) any
entity that retains Buyer or a company affiliated with Buyer to manage the
Property.  Buyer may not otherwise assign
this Agreement, whether voluntarily or by operation of law, without first
obtaining Sellers’ written consent, which consent may not be unreasonably
withheld, and provided that at least five (5) business days prior to the then
scheduled Closing Date Buyer has given Sellers written notice of the assignment
(including the full legal name and address of the proposed assignee and other
information necessary for an alternate set of closing documents be prepared and
executed naming the proposed assignee), together with a fully executed original
of the assignment. Any assignment in contravention of this provision shall be
void.  No assignment shall release
Harvard Property Trust, LLC from any obligation or liability under this
Agreement, including without limitation all of Buyer’s indemnification, defense
and hold harmless obligations under this Agreement or any document executed by
the Buyer and delivered to Sellers at the Closing (whether accruing before or
after Closing), all of which shall survive the Close of Escrow or sooner
termination of this Agreement, and as to which Harvard Property Trust, LLC
shall remain jointly and severally liable with any assignee of Buyer before and
after Close of Escrow.  This Section
shall survive the Close of Escrow or termination of this Agreement.

25.           Subordination, Non-Disturbance and Attornment
Agreements. Prior to the Closing, if requested by Buyer,
each Seller agrees to cooperate with Buyer, at no cost to Sellers, to request
in writing and obtain subordination, non-disturbance and attornment agreements
(“SNDAs”) from tenants under
Leases selected by Buyer’s lender. 
Unless the SNDAs are delivered directly by the tenants into Escrow, then
if, as and when received by a Seller, such 

 27
 

Seller shall deliver the executed SNDAs into Escrow with instructions
to obtain any remaining signatures of the parties to the SNDAs, for recordation
in the Official Records at the Closing, or if Buyer elects to deliver the
signed SNDAs to Buyer following the Closing. 
If the transaction contemplated herein fails to close for any reason
whatsoever, Buyer shall cause to be returned to Sellers (or at Sellers’
election to the tenants) all such executed SNDAs previously delivered to
Escrow.  The failure to obtain SNDAs from
all or any of the selected tenants shall not constitute a default by Sellers
hereunder, shall not be a condition to the Closing, and shall not entitle Buyer
to terminate this Agreement.

26.           Binding Effect.  This Agreement shall be binding upon and
inure to the benefit of the parties hereto and their respective legal
representatives, successors and permitted assigns.

27.           Modifications; Waiver.  No waiver, modification, amendment, discharge
or change of this Agreement shall be valid unless the same is in writing and
signed by the party against which the enforcement of such modification, waiver,
amendment, discharge or change is sought.

28.           Entire Agreement.  This Agreement, together with the
Confidentiality Agreement incorporated herein and as modified pursuant to Section
7(a)(1) above,  contains the entire
agreement between the parties relating to the transactions contemplated hereby
and all other prior or contemporaneous agreements, understandings,
representations or statements, oral or written, are superseded hereby.

29.           Partial Invalidity.  Any provision of this Agreement which is
void, unenforceable or invalid or the inclusion of which would adversely affect
the validity, legality or enforcement of this Agreement shall be of no effect,
but all the remaining provisions of this Agreement shall remain in full force
and effect.

30.           Survival.  Except for those representations, warranties,
covenants, agreements and other obligations which this Agreement expressly
provides shall survive termination of the Closing, no representations,
warranties, covenants, agreements and other obligations of Sellers in this
Agreement shall survive the Closing of this transaction and no action based
thereon shall be commenced after the Closing of this transaction.

31.           No Personal Liability of Principals.  Buyer agrees that no partner, member,
officer, shareholder, director, trustee, beneficiary, affiliate or representative
of any Seller or any general partner or affiliate of Sellers shall have any
personal liability under this Agreement or any document executed in connection
with the transactions contemplated by this Agreement. This Section shall
survive the Close of Escrow or termination of this Agreement.

32.           No Third Party Rights; Broker Not a Party.  Nothing in this Agreement, express or
implied, is intended to confer upon any person, other than the parties hereto
and their respective successors and permitted assigns, any rights or remedies
under or by reason of this Agreement. 
Sellers and Buyer agree that it is their specific intent that no broker
is a party to or a third party beneficiary of this Agreement or the Escrow; and
further that consent of a broker is not necessary to any agreement, amendment
or document with respect to the transaction contemplated by this Agreement.

 28
 

33.           No Recording.  Sellers and Buyer agree that neither this
Agreement nor any memorandum thereof shall be recorded.

34.           Attorneys’ Fees.  In the event of any litigation arising out of
this Agreement, the prevailing party shall be entitled to reasonable attorneys’
fees and costs.  Any such attorneys’ fees
and costs incurred by either party in obtaining or enforcing a judgment in its
favor under this Agreement shall be recoverable separately from and in addition
to any other amount included in such judgment, and such attorneys’ fees
obligation is intended to be severable from the other provisions of this
Agreement and to survive and not be merged into any such judgment.  This Section shall survive the Close of
Escrow or termination of this Agreement.

35.           Submission of Agreement.  The submission of this Agreement to Buyer or
its brokers, agents or attorneys for review will not be deemed an offer to sell
the Property to Buyer, and no agreement with respect to the purchase and sale
of the Property will exist unless and until this Agreement is executed and
delivered by all of the Sellers and Buyer.

36.           Real Estate Reporting Person.  Escrow Holder is designated the “real estate
reporting person” for purposes of Section 6045 of Title 26 of the United States
Code and Treasury Regulation 1.6045-4 and any instructions or settlement
statement prepared by Escrow Holder shall so provide.  Upon the consummation of the transactions
contemplated by this Agreement, Escrow Holder shall file a Form 1099
information return and send the statement to Sellers as required under the
aforementioned statute and regulation.

37.           IRC Section 1031 Exchange.  Each and every Seller may consummate the sale
of the its Property to Buyer as part of one or more like-kind exchanges
pursuant to Section 1031 of the Internal Revenue Code, as amended, including
any forward and/or reverse exchange, and in connection with such exchanges may
assign all or any portion of such Seller’s right, title and interest in this
Agreement to one or more exchange intermediaries.  Buyer agrees to cooperate with such Seller
(including without limitations executing documents reasonably requested by such
Seller) provided: (i) there shall be no delay in the Closing Date; (ii) such
Seller shall not be released from its obligations under this Agreement if any
such exchange fails for any reason, and such Seller shall remain obligated to
sell the Property to Buyer; (iii) such exchanges shall be at no cost to Buyer,
other than review costs of Buyer’s attorneys or other advisors; and (iv) Buyer
need not assume any additional liabilities or obligations, nor assume any
personal liability, as a result of any such exchange or attempted
exchange.  Buyer hereby disclaims any
responsibility for the qualification of the transactions contemplated by this
Agreement as a tax-deferred exchange under Internal Revenue Code Section 1031,
as amended, and such Seller agrees that Buyer shall not be liable for any tax
liability, interest or penalties arising thereunder by virtue of Buyer’s
cooperation in the consummation of any such exchange or attempted exchange.
Notwithstanding any assignment of this Agreement by such Seller in connection
with a like-kind exchange, if the exchange intermediary so directs, the Grant
Deed shall name such Seller as the grantor.

38.           Computation of Time.  In computing any period of time pursuant to
this Agreement, the day of the act or event from which the designated period of
time begins to run will not be included, and the last day of the period so
computed will be included, unless it is a Saturday, Sunday or legal holiday
recognized as such in California, in which event the period 

 29
 

runs until the end
of the next day which is not a Saturday, Sunday or such legal holiday.  As used in the Agreement, “business day” shall mean a day which is not
a Saturday, Sunday or legal holiday recognized as such in California.

39.           Waiver.  No waiver of any of the provisions of this
Agreement shall be deemed, or shall constitute, a waiver of any other
provision, whether or not similar, nor shall any waiver constitute a continuing
waiver.  No waiver shall be binding
unless executed in writing by the party making the waiver.

40.           Number and Gender; Joint and Several Liability.  When required by the context of this
Agreement, each number (singular and plural) shall include all numbers, and
each gender shall include all genders. In the event either party hereto now or
hereafter shall consist of more than one person, firm, or corporation, then and
in such event, all such persons, firms, or corporations shall be jointly and
severally liable as parties under this Agreement.

41.           Negotiated Terms.  Each party has had the opportunity to be
advised by legal counsel and other professionals in connection with this
Agreement, and each party has obtained such advice as each party deems
appropriate. The parties agree that the terms and conditions of this Agreement
are the result of negotiations between the parties and that this Agreement
shall not be construed in favor of or against any party by reason of the extent
to which any party or its professionals participated in the preparation of this
Agreement.

42.           Back Up Offers.  Until expiration of the Due Diligence Period,
each Seller shall have the right to continue to present its Property for sale
and accept “back-up” offers, subject to Buyer’s rights under this Agreement.

43.           Maximum Aggregate Liability.  Notwithstanding any provision to the contrary
contained in this Agreement or any documents executed by Sellers pursuant
hereto or in connection herewith, and without in any way expanding any
limitations on the liability of Sellers or the Sellers Parties set forth
elsewhere in this Agreement, the maximum aggregate liability of Sellers and the
Sellers Parties, and the maximum aggregate amount which may be awarded to and
collected by Buyer, in connection with the transactions described in this
Agreement, the Property, under this Agreement and under any and all documents
executed pursuant hereto or in connection herewith (including, without
limitation, in connection with the breach of any of a Seller’s Surviving
Obligations), over the amount of the Deposits which this Agreement may
expressly state must be returned to Buyer, shall not exceed Two Million Five
Hundred Thousand Dollars ($2,500,000) for SDC 051 and shall not exceed One
Million Dollars ($1,000,000) for RET. 
This Section shall survive the Close of Escrow or termination of this
Agreement.

44.           Facsimile Signatures.  Signatures to this Agreement transmitted by
telecopy or other electronic transmission shall be valid and effective to bind
the party so signing.  Each party agrees
to promptly deliver an execution original to this Agreement with its actual signature
to the other party, but a failure to do so shall not affect the enforceability
of this Agreement, it being expressly agreed that each party to this Agreement
shall be bound by its own telecopied or electronically transmitted signature
and shall accept the telecopied or electronically transmitted signature of the
other party to this Agreement.

 30
 

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

	
   

  	
  SELLERS:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SOBRATO DEVELOPMENT COMPANY NO.

  051, a California Limited Partnership

  
	
   

  	
   

  
	
   

  	
  By:

  	
  The John Michael Sobrato 1985 Separate

  
	
   

  	
  Property

  
	
   

  	
   

  	
  Trust, As Amended

  
	
   

  	
  Its:

  	
  General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
  /s/ John Michael Sobrato

  
	
   

  	
   

  	
   

  	
  John Michael Sobrato

  
	
   

  	
   

  	
  Its:

  	
  Trustee

  
	
   

  	
   

  	
  Dated:

  	
   3/21/07

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  RET:

  
	
   

  	
   

  
	
   

  	
  REAL ESTATE TRUST AT COMMUNITY

  FOUNDATION SILICON VALLEY,

  
	
   

  	
  a California nonprofit public benefit corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Peter Hero

  
	
   

  	
  Name:

  	
   Peter Hero

  
	
   

  	
  Its:

  	
   President

  
	
   

  	
  Dated:

  	
   3/21/07

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Its:

  	
   

  
	
   

  	
  Dated:

  	
   

  
								

 

 31
 

 

	
  

  	
  BUYER:

  
	
   

  	
   

  
	
   

  	
  HARVARD PROPERTY TRUST, LLC, a

  Delaware limited liability company, d/b/a Behringer

  Harvard Funds

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Jon L. Dooley

  
	
   

  	
  Name:

  	
   Jon L. Dooley

  
	
   

  	
  Its:

  	
   EVP – Real Estate

  
	
   

  	
  Dated:

  	
   3/21/07

  

 

 32

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