Document:

Exhibit 10.167

PURCHASE AND SALE
AGREEMENT

between

AGL
INVESTMENTS NO.2 LIMITED PARTNERSHIP L.L.L.P.,

as
Seller,

HARVARD PROPERTY TRUST, LLC, doing business as
BEHRINGER HARVARD REAL ESTATE,

as
Purchaser

September 20, 2006

 

TABLE OF
CONTENTS

	
  

  	
   

  	
  Page 

  
	
   

  	
   

  	
   

  
	
  1.

  	
  Purchase and Sale

  	
  2

  
	
  2.

  	
  Purchase Price

  	
  2

  
	
   

  	
  2.1

  	
  Deposit

  	
  2

  
	
   

  	
  2.2

  	
  Cash at Closing

  	
  3

  
	
  3.

  	
  Deliveries; Title; Feasibility

  	
  3

  
	
   

  	
  3.1

  	
  Seller’s Deliveries

  	
  3

  
	
   

  	
  3.2

  	
  Title and Survey

  	
  3

  
	
   

  	
  3.3

  	
  Inspections Complete

  	
  4

  
	
   

  	
  3.4

  	
  Indemnity

  	
  4

  
	
  4.

  	
  Title

  	
  4

  
	
   

  	
  4.1

  	
  Issuance of Title Policy

  	
  4

  
	
   

  	
  4.2

  	
  Subsequent Title Defects

  	
  5

  
	
  5.

  	
  Seller’s Representations and Warranties

  	
  5

  
	
   

  	
  5.1

  	
  No Possessory Rights

  	
  5

  
	
   

  	
  5.2

  	
  Leases

  	
  5

  
	
   

  	
  5.3

  	
  No Third-Party Interests

  	
  6

  
	
   

  	
  5.4

  	
  Authority

  	
  6

  
	
   

  	
  5.5

  	
  Non-Contravention

  	
  6

  
	
   

  	
  5.6

  	
  Environmental Matters

  	
  6

  
	
   

  	
  5.7

  	
  Condemnation

  	
  6

  
	
   

  	
  5.10

  	
  No Bankruptcy or Insolvency

  	
  7

  
	
   

  	
  5.11

  	
  No Claims

  	
  7

  
	
   

  	
  5.12

  	
  No Commission Agreements

  	
  7

  
	
   

  	
  5.13

  	
  No Assessments or Abatements

  	
  7

  
	
   

  	
  5.14

  	
  Compliance With Anti-Terrorism Laws

  	
  7

  
	
   

  	
  5.15

  	
  AS-IS SALE; DISCLAIMERS

  	
  7

  
	
   

  	
  5.16

  	
  ENVIRONMENTAL RELEASE

  	
  8

  
	
   

  	
  5.17

  	
  Limitation

  	
  8

  
	
   

  	
  5.18

  	
  Representations Re-made as of Closing

  	
  9

  
	
  6.

  	
  Purchaser’s Representations and Warranties

  	
  9

  
	
   

  	
  6.1

  	
  Authority

  	
  9

  
	
   

  	
  6.2

  	
  Consents; Binding Obligations

  	
  9

  
	
   

  	
  6.3

  	
  Compliance With Anti-Terrorism Laws

  	
  9

  
	
   

  	
  6.4

  	
  Representations Re-made as of Closing

  	
  9

  
	
  7.

  	
  Covenants

  	
  10

  
	
   

  	
  7.1

  	
  Leasing Activities Until Closing

  	
  10

  
	
   

  	
  7.2

  	
  City Certificate

  	
  10

  
	
   

  	
  7.3

  	
  Generally

  	
  10

  
	
  8.

  	
  Conditions Precedent

  	
  12

  
	
   

  	
  8.1

  	
  Generally

  	
  12

  
	
   

  	
  8.2

  	
  Title Policy

  	
  12

  
	
   

  	
  8.3

  	
  Estoppels

  	
  12

  

 

 i
 

 

	
   

  	
   

  	
   

  	
  Page 

  
	
   

  	
   

  	
   

  	
   

  
	
  

  	
  8.6

  	
  City Certificate

  	
  13

  
	
   

  	
  8.7

  	
  Failure of Purchaser’s Conditions Precedent

  	
  13

  
	
  9.

  	
  Closing

  	
  14

  
	
   

  	
  9.1

  	
  Time of Closing

  	
  14

  
	
   

  	
  9.2

  	
  Escrow and Mechanics of Closing

  	
  14

  
	
   

  	
  9.3

  	
  Closing Documents

  	
  14

  
	
   

  	
  9.4

  	
  Additional Deliveries

  	
  16

  
	
   

  	
  9.5

  	
  Letters of Credit as Security Deposits

  	
  16

  
	
   

  	
  9.6

  	
  Survival

  	
  16

  
	
  10.

  	
  Adjustments and Prorations

  	
  17

  
	
   

  	
  10.1

  	
  Lease Rentals

  	
  17

  
	
   

  	
  10.2

  	
  Ad Valorem Taxes and Assessments

  	
  17

  
	
   

  	
  10.3

  	
  Operating Expenses

  	
  17

  
	
   

  	
  10.4

  	
  Excise, Transfer and Recording Taxes

  	
  18

  
	
   

  	
  10.5

  	
  Credits at Closing

  	
  18

  
	
   

  	
  10.6

  	
  Closing Costs

  	
  18

  
	
   

  	
  10.7

  	
  Insurance

  	
  18

  
	
   

  	
  10.8

  	
  Date of Prorations

  	
  18

  
	
   

  	
  10.9

  	
  Survival

  	
  19

  
	
  11.

  	
  Casualty Damage

  	
  19

  
	
   

  	
  11.1

  	
  Notice and Estimate

  	
  19

  
	
   

  	
  11.2

  	
  Minor Damage

  	
  19

  
	
   

  	
  11.3

  	
  Major Damage

  	
  19

  
	
  12.

  	
  Condemnation

  	
  19

  
	
   

  	
  12.1

  	
  Notice

  	
  19

  
	
   

  	
  12.2

  	
  Termination

  	
  19

  
	
  13.

  	
  Deposit

  	
  20

  
	
  14.

  	
  Remedies

  	
  20

  
	
   

  	
  14.1

  	
  Breach by Seller

  	
  20

  
	
   

  	
  14.2

  	
  Breach by Purchaser

  	
  21

  
	
   

  	
  14.3

  	
  Limitation of Seller’s Liability

  	
  21

  
	
  15.

  	
  Miscellaneous

  	
  22

  
	
   

  	
  15.1

  	
  Brokers

  	
  22

  
	
   

  	
  15.2

  	
  Entire Agreement

  	
  22

  
	
   

  	
  15.3

  	
  Survival

  	
  22

  
	
   

  	
  15.4

  	
  Dates

  	
  22

  
	
   

  	
  15.5

  	
  Governing Law

  	
  22

  
	
   

  	
  15.6

  	
  Notices

  	
  22

  
	
   

  	
  15.7

  	
  Headings

  	
  23

  
	
   

  	
  15.8

  	
  Assignment

  	
  24

  
	
   

  	
  15.9

  	
  Successors and Assigns

  	
  24

  
	
   

  	
  15.10

  	
  Tax Deferred Exchange

  	
  24

  

 

 ii
 

 

	
   

  	
   

  	
   

  	
  Page 

  
	
   

  	
   

  	
   

  	
   

  
	
  

  	
  15.11

  	
  Knowledge

  	
  24

  
	
   

  	
  15.12

  	
  Books and Records

  	
  25

  
	
   

  	
  15.13

  	
  Waiver of Jury Trial

  	
  25

  
	
   

  	
  15.14

  	
  Recording

  	
  25

  
	
   

  	
  15.15

  	
  No Joint Venture

  	
  25

  
	
   

  	
  15.16

  	
  Attorneys’ Fees

  	
  25

  
	
   

  	
  15.17

  	
  Counterparts; Facsimile

  	
  25

  
	
   

  	
  15.18

  	
  Audit Rights

  	
  25

  
	
   

  	
  15.19

  	
  Disclosure Rights

  	
  26

  
	
   

  	
  15.20

  	
  Recovery Fund Notice

  	
  26

  
	
   

  	
  15.21

  	
  Bulk Sales

  	
  26

  
	
   

  	
  15.22

  	
  Guaranty of Amstar Group, LLC for Certain
  Obligations

  	
  28

  

 

 

 iii

PURCHASE
AND SALE AGREEMENT

THIS PURCHASE AND SALE AGREEMENT (this “Agreement”)
is made and entered into as of September 20, 2006, by and between HARVARD
PROPERTY TRUST, LLC, a Delaware limited liability company, doing business as
BEHRINGER HARVARD REAL ESTATE (“Purchaser”),
and AGL INVESTMENTS NO.2 LIMITED PARTNERSHIP L.L.L.P., a Colorado limited
liability limited partnership (“Seller”).

Recitals

This Agreement is made with respect to the following facts:

A.            Seller
is the fee owner of the following described property (collectively, the “Property”):

(1)           The land described on Exhibit A
attached hereto (the “Land”),
including, without limitation, any water or mineral rights, air or subsurface
rights, appurtenant easements, access rights in and to adjacent roadways,
strips and gores, rights-of-way, curb cuts and rights of ingress and egress to
the Land (the “Property Rights”);

(2)           All improvements in, upon and under
the Land, including the existing office structure (consisting of approximately
561,351 rentable square feet) (the “Building”) and
all fixtures therein except for any such improvements or fixtures which are
owned by any tenant under the “Leases” (as defined below) in accordance with
the provisions thereof (such improvements and fixtures owned by Seller are
hereinafter collectively referred to as the “Improvements”;
the Land and the Improvements are located at 1601-1645 Cherry Street,
Philadelphia, Pennsylvania and known as “Three Parkway,” and are hereinafter
collectively referred to as the “Real Property”);

(3)           The landlord’s interest under the
leases and telecommunications license agreements and all amendments or
modifications thereto and guaranties thereof affecting the Real Property  as listed on Exhibit I along with any
new leases approved by Purchaser prior to the Closing Date (the “Leases”);

(4)           That personal property owned by
Seller and used in the normal operation and management of the Real Property,
including, without limitation, the items shown on the inventory attached hereto
as Exhibit J (the “Personal Property”);

(5)           All right, title and interest of
Seller in and to those agreements for the repair or maintenance of, or
provision of services to, the Real Property and/or the Personal Property,
including those listed on Exhibit K (the “Service Contracts”);

(6)           All right, title and interest of
Seller in and to all governmental permits, development rights or agreements,
licenses, certificates and authorizations, including, without limitation,
certificates of occupancy, relating to the construction, use or operation of
the Real Property or the Personal Property, to the extent the same may be
lawfully assigned to Purchaser (the “Permits”);

 1
 

(7)           All right, title and interest of
Seller in and to all unexpired warranties, guarantees and bonds, including, without
limitation, contractors’ and manufacturers’ warranties or guarantees, relating
to the Real Property or the Personal Property, to the extent the same may be
lawfully assigned to Purchaser (the “Warranties”);

(8)           All site plans, surveys, soil and
substratus studies, environmental reports and studies, architectural drawings,
plans and specifications, engineering, electrical and mechanical reports, plans
and studies, floor plans and landscape plans that relate to the Real Property
or the Personal Property that are in Seller’s possession and obtained from and
after the date of Seller’s acquisition of the Property (the “Plans”), to the extent the Plans are assignable, but
excluding any photographs, depictions, drawings and other such materials
concerning the Property or Personal Property reasonably required by Seller for
use in Seller’s future annual reports and/or marketing brochures to evidence
Seller’s prior ownership of the Property and the Personal Property (the “Retained Items”);

(9)           All trade names, trademarks, logos
and marketing materials used in connection with the Real Property, including
the right to use the name “Three Parkway,” but specifically excluding any names
relating to the name of Seller, including, without limitation, the name “Amstar”
all to the extent such intangible property, appurtenances and trade names are
assignable, but reserving unto Seller the right to use the Retained Items (the “Trade Name Rights”); and

(10)         The rents and/or other consideration
arising from the Leases, including specifically, but without limitation, any
and all prepaid deposits, rents and/or other consideration, and all security
deposits, letters of credit or other deposits applicable to the Property (the “Rents”).

B.            Seller desires to sell to Purchaser, and Purchaser
desires to purchase from Seller, the Property on the terms and conditions
hereinafter set forth.

Agreement

In consideration of the mutual promises and agreements set forth below,
and for other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereby agree as follows:

1.             Purchase and Sale.  Subject to the terms and conditions set forth
in this Agreement, Seller agrees to sell, assign and convey to Purchaser, and
Purchaser agrees to purchase from Seller, the Property.

2.             Purchase Price.  The purchase price for the Property (the “Purchase Price”) will be ninety million dollars
($90,000,000.00), payable as follows:

2.1           Deposit.  $2,000,000.00 (the “Deposit”)
will be paid by Purchaser to LandAmerica Partners Title Company in Houston
Texas (the “Escrow Agent”) by check, subject
to collection, or by wire transfer of immediately available funds on or before
the date which is three (3) business days after both Purchaser and Seller
have executed and delivered this 

 2
 

Agreement (the date of execution by both Purchaser and
Seller being the “Effective Date”).  Upon deposit with the Escrow Agent, the
Deposit will be nonrefundable to Purchaser for any reason whatsoever, except as
expressly provided to the contrary in this Agreement.  The Escrow Agent will place the Deposit in an
interest-bearing account, subject to the terms of this Agreement, including,
without limitation, Section 13.

2.2           Cash at Closing.  Upon closing of the transaction contemplated
by this Agreement (the “Closing”),
Purchaser will pay to the Escrow Agent, by wire transfer of immediately
available funds, the balance of the Purchase Price, subject to the adjustments
and prorations provided for herein.

3.             Deliveries;
Title; Feasibility.

3.1           Seller’s Deliveries.  As of the Effective Date, Seller has
delivered, or caused to be delivered to Purchaser, those documents and
materials described on Exhibit B (all of which are collectively
referred to herein as “Seller’s Deliveries”).  Except as otherwise expressly provided in the
Agreement, including in Section 5, Seller makes no representation or
warranty, express or implied, regarding the accuracy or completeness of Seller’s
Deliveries, the qualifications of the persons preparing the same, or Purchaser’s
right to rely upon the information contained in the Seller’s Deliveries.

3.2           Title and Survey.

(a)           Title Insurance Commitment.  Purchaser has obtained from Commonwealth Land
Title Insurance Company (the “Title Company”)
a title commitment for the Real Property, Order No. GF#2711000981,
including copies of all recorded exceptions to title referred to therein
(collectively, the “Title Commitment”).  Purchaser has reviewed the Title Commitment
and negotiated with the Title Company in order to cause the Title Company to
modify the Title Commitment to reflect only those exceptions to title that are
acceptable to Purchaser.  The exceptions
to title disclosed in the Title Commitment (i.e., including any endorsements or
supplements to the Title Commitment that the Title Company has agreed to issue
prior to such expiration), including any survey matters, will be the “Permitted Exceptions” hereunder, excluding (i) any
delinquent taxes or assessments, (ii) any monetary liens or encumbrances
created by, through or under Seller, or (iii) any standard printed
exceptions concerning parties in possession, mechanics’ liens or claims
therefor and matters first appearing in the public records after the date of
the Title Commitment but before Closing. 
At or prior to Closing, Seller will provide such affidavits to the Title
Company as may be necessary to delete such standard printed exceptions and
Seller will cause any delinquent taxes or assessments and any monetary liens or
encumbrances created by, through or under Seller and any mechanics’ liens or
claims and any other encumbrances resulting from Seller’s breach of its
covenants under this Agreement (any such item being a “Non-Permitted
Exception”) to be removed of record. 
Except as specifically provided in this Section 3.2(a), Seller will
have no obligation to cure or remove any exceptions shown on the Title
Commitment unless Seller agrees in writing to do so.

 3
 

(b)           Survey.  Purchaser has obtained an update of Seller’s
existing as-built survey of the Real Property (the “Survey”).  If Purchaser desires to delete the so-called
pre-printed survey exceptions from the Title Commitment, then in
connection with Closing, Seller will cooperate with Purchaser by executing such
customary affidavits relating to such survey exceptions as are reasonably
acceptable to Seller.  Except as
specifically provided in this Section 3.2(b), Seller will have no
obligation to cure or remove any title matters shown on the Survey or any
update thereof unless Seller agrees in writing to do so.

3.3           Inspections Complete.  Purchaser has had an opportunity prior to the
Effective Date to investigate the Property and all matters relevant to its
acquisition, ownership and operation, including, without limitation, the right
to have made, at Purchaser’s expense, any studies or inspections of the
Property that Purchaser may deem necessary or appropriate.  During the term of this Agreement, Purchaser
shall continue to have the right to enter onto the Property to facilitate the
transition of ownership as Purchaser may deem reasonably necessary or
appropriate, provided, however, Purchaser waives any right to terminate this
Agreement as a result of such matters or any other reason, except as expressly
set forth in this Agreement.

3.4           Indemnity.  Purchaser agrees to indemnify and hold Seller
harmless from any claim, demand, liability, lien, cost or expense asserted
against Seller or the Property arising out of or resulting from the
investigations of the Property by Purchaser or its employees, agents,
representatives or contractors prior to Closing, to pay Seller all reasonable
costs and expenses, including reasonable attorneys’ fees, incurred in defending
any such matter, and to repair any damage resulting to the Property due to such
investigations, or if requested by Seller, reimburse Seller for all expenses
incurred by Seller in repairing such damage if Purchaser does not promptly
repair such damage; provided, however, Purchaser shall not be liable for, and
shall not indemnify or reimburse Seller with respect to, any pre-existing
condition, fact, matter, item, or substance discovered, uncovered, located,
identified, as a result of Purchaser’s entry except to the extent such
pre-existing condition, fact, matter, item, or substance was exacerbated by
Purchaser’s negligence in connection with its entry and inspection.  Notwithstanding any other terms and
provisions of this Agreement to the contrary, this indemnification, repair and
reimbursement obligation of Purchaser will survive Closing or any termination
of this Agreement.

4.             Title.

4.1           Issuance of Title Policy.  At Closing, Purchaser will have the right to
cause the Title Company to issue, or unconditionally commit to issue, to
Purchaser its ALTA owner’s policy of title insurance insuring in the amount of
the Purchase Price that title to the Real Property is vested in Purchaser,
subject only to the Permitted Exceptions and the Leases (the “Title Policy”). 
Seller will reasonably cooperate with Purchaser to obtain the Title
Policy, including, without limitation, satisfying requirements with respect to
Seller’s organizational status or authority to complete the transaction;
provided Purchaser will be solely responsible for satisfying any requirements
that the Title Company may impose specifically with respect Purchaser, such as,
for example, requirements with respect to Purchaser’s organizational status or
authority to complete the transaction. 
Purchaser’s ability to satisfy any such requirements will in no event be
deemed a condition precedent to Purchaser’s obligations hereunder (but it shall
be

 4
 

a condition to Purchaser’s obligations to close that
the Title Policy is issued at Closing, as provided in Section 8.2).

4.2           Subsequent Title Defects.  If, subsequent to the Effective Date and
prior to Closing, Seller is notified of the existence of any encumbrance,
encroachment, defect or other matter materially and adversely affecting title to the Real
Property, other than the Permitted Exceptions and other than any delinquent
taxes or assessments or any monetary liens or encumbrances created by, through
or under Seller (which Seller is obligated to remove prior to Closing pursuant
to Section 3.2(a)) (a “Subsequent Defect”),
Seller will use such efforts and will expend such amount as it may, in its sole
judgment, deem appropriate to remove or cure such Subsequent Defect prior to
Closing.  Seller will have no obligation,
however, to cure any Subsequent Defect, except for any Non-Permitted Exceptions
which Seller shall cause to be removed of record.  If Seller does not or is unable to so remove
or cure all Subsequent Defects prior to Closing (other than any Non-Permitted
Exceptions, which Seller shall cause to be removed of record), Purchaser may
(a) waive all such uncured Subsequent Defects and accept such title as
Seller is able to convey as of Closing without a reduction in the Purchase
Price; or (b) terminate this Agreement, whereupon the Escrow Agent will
return the Deposit to Purchaser and all parties will be relieved of any further
obligations hereunder, except for those obligations which expressly survive any
termination hereof; provided, however, if the Subsequent Defect is caused by
Seller or within Seller’s reasonable control and permitted by Seller and then
Seller fails to cure and/or remove of record such Subsequent Defect, then Seller
shall reimburse Purchaser for Purchaser’s actual out of pocket third (3rd)
party expenses including attorney’s fees, engineering fees, consultant’s fees,
environmental fees, loan application fees, rate lock fees, lender fees,
appraisal fees, and other costs incurred in connection with the potential
acquisition and financing of the Property, the inspection and review of the
Property and the negotiation of this Agreement (“Purchaser’s
Out-of-Pocket Expenses”), up to a maximum amount not to
exceed One Hundred Fifty Thousand ($150,000.00) Dollars.

5.             Seller’s
Representations and Warranties. 
Seller represents, warrants and covenants to Purchaser as follows:

5.1           No Possessory Rights.  To Seller’s actual knowledge, except for any
parties in possession pursuant to, and any rights of possession granted under,
the Permitted Exceptions, the Service Contracts and the Leases, there are no
parties in possession of any part of the Real Property, and there are no other
rights of possession which have been granted to any third party or parties.

5.2           Leases.  To Seller’s actual knowledge, each of the
Leases is in effect, has not been modified, amended or rescinded and the rights
of each lessee thereunder are as tenants only and none has any ownership
interest or option or right of first refusal to acquire any ownership interest
in the Property and none has any right or option to renew or extend the lease
term or to lease additional space except as provided in its Lease.  With respect to the Leases, to Seller’s
knowledge, (i) neither the tenants nor Seller is in default in the performance
of any material covenant, agreement or condition contained in the Leases, and
(ii) Seller has not received written notice from any tenant regarding pending
or threatened offsets against rent or for any other monetary or material claim
against Seller which has not been fully resolved and no rent concessions have
been created which are not disclosed in the Leases.

 5
 

5.3           No Third-Party Interests.  To Seller’s actual knowledge, as of the date
of this Agreement, Seller has not granted to any party any option, contract or
other agreement with respect to a purchase or sale of the Property or any
portion thereof or any interest therein.

5.4           Authority.  Seller is duly organized and in good standing
under the laws of the state of its organization, is qualified to do business in
the Commonwealth of Pennsylvania and has the limited liability limited
partnership power to enter into this Agreement and to execute and deliver this
Agreement and to perform all duties and obligations imposed upon it hereunder,
and Seller has obtained all necessary limited liability limited partnership
authorizations required in connection with the execution, delivery and
performance contemplated by this Agreement and has obtained the consent of all
entities and parties necessary to bind Seller to this Agreement.  To Seller’s actual knowledge, no consent,
approval, order or authorization of, or registration, qualification,
designation, declaration or filing with, any governmental authority on the part
of Seller is required in connection with the execution and delivery of this
Agreement or its sale of the Property.

5.5           Non-Contravention.  Neither the execution nor the delivery of
this Agreement, nor the consummation of the purchase and sale contemplated
hereby, nor the fulfillment of or compliance with the terms and conditions of
this Agreement conflict with or will result in the breach of any of the terms,
conditions or provisions of any agreement or instrument to which Seller is a party
or by which Seller or any of Seller’s assets is bound.

5.6           Environmental Matters. To
Seller’s actual knowledge, except as may be disclosed in Seller’s Deliveries,
Seller has not received any written notice of any violation issued pursuant to
any current law, rule, regulation, order or directive pertaining to the
protection of health, safety, the environment and/or pollution with respect to
the Real Property or any use or condition thereof.  To the Seller’s actual knowledge, except
(i) as referenced in Seller’s Deliveries and/or (ii) those such
substances or materials which are used in Seller’s business conducted on the
Property (or the business of any of the tenants) and handled in conformity with
applicable law and regulations, there are no hazardous wastes, petroleum
products, pollutants, asbestos, asbestos containing materials, or other
hazardous substances located in, upon or beneath the Real Property in any case,
in form and/or quantity that violates any applicable laws .

5.7           Condemnation.  Seller has no actual knowledge of, and has
not received any notice of, any threatened or pending condemnation proceedings
affecting the Real Property.

5.8           Materials and Reports.  The written materials and reports which
Seller has delivered or shall deliver to Purchaser pursuant this Agreement,
including, without limitation the Seller’s Deliveries, to Seller’s actual
knowledge, contain all of the material and final documents and reports in
Seller’s or Seller’s agents’ possession or control which were acquired after Seller’s
acquisition of the Property and which relate to the subject matter thereof.

5.9           Violations.  To Seller’s actual knowledge, except as may
be disclosed in Seller’s Deliveries, Seller has not received any written notice
or citation alleging any housing, building, fire, health, safety, or other
violation of any law, regulation, permit, order or directive in respect of the
Real Property or any part thereof that remains uncured as of the Effective
Date.

 6

 

5.10         No Bankruptcy or Insolvency.  No bankruptcy or insolvency proceeding under
the Bankruptcy Code or any state bankruptcy or insolvency law filed by or
against Seller is pending and no such filing is contemplated by Seller, or, to
Seller’s actual knowledge, threatened.

5.11         No Claims.  To Seller’s actual knowledge, there are no
outstanding, or, to Seller’s actual knowledge, threatened litigation, claims or
proceedings before any court, commission, agency or other administrative
authority which could prohibit or materially adversely affect Seller’s title to
the Property or Seller’s ability to consummate the transaction contemplated by
this Agreement, or that might be an encumbrance on Purchaser or the Property
after Closing.

5.12         No Commission Agreements.  To Seller’s actual knowledge, there are no
lease brokerage agreements, leasing commission agreements or other agreements
providing for payments of any amounts for leasing activities or procuring
tenants with respect to the Property, other than as expressly set forth in the
Leases and Seller’s Deliveries.

5.13         No Assessments or Abatements.  To Seller’s actual knowledge, except as
disclosed in the Seller’s Deliveries, there are no assessments or abatements
affecting the Real Property or any portion thereof.

5.14         Compliance With Anti-Terrorism Laws.  Neither Seller nor any of its constituent
partners, members or shareholders, nor any beneficial owner of Seller or of any
such partner, member or shareholder (i) is listed on the Specially Designated
Nationals and Blocked Persons List maintained by the Office of Foreign Asset
Control, Department of the Treasury (“OFAC”) pursuant
to the Executive Order No. 13224, 66 Fed. Reg. 49079 (Sept. 25, 2001) (“Order”); (ii) is listed on any other list of terrorists or
terrorist organizations maintained pursuant to the Order, the rules and
regulations of OFAC or any other applicable requirements contained in any
enabling legislation or other Executive Orders in respect of the Order (the
Order and such other rules, regulations, legislation or orders are collectively
called the “Orders”); (iii) is engaged in
activities prohibited in the Orders; or (iv) has been convicted, pleaded nolo
contendere, indicted, arraigned or custodially detained on charges involving
money laundering or predicate crimes to money laundering.

5.15         AS-IS SALE; DISCLAIMERS.  SELLER EXPRESSLY DISCLAIMS, AND PURCHASER
ACKNOWLEDGES AND ACCEPTS THAT SELLER HAS DISCLAIMED, MAKING ANY
REPRESENTATIONS, WARRANTIES, OR ASSURANCES WITH RESPECT TO THE PROPERTY OTHER
THAN AS SPECIFICALLY SET OUT HEREIN OR IN ANY DOCUMENTS DELIVERED TO PURCHASER
IN CONNECTION WITH THE CLOSING PURSUANT TO THIS AGREEMENT, SUCH AS THE DEED,
BILL OF SALE OR CERTIFICATE REAFFIRMING REPRESENTATIONS AND WARRANTIES
(COLLECTIVELY, THE “CLOSING DOCUMENTS”),
SPECIFICALLY INCLUDING, BUT NOT LIMITED TO, REPRESENTATIONS OR WARRANTIES AS TO
MATTERS OF TITLE, ZONING, TAX CONSEQUENCES, PHYSICAL CONDITION, OPERATING
HISTORY OR PROJECTIONS, VALUATIONS, GOVERNMENTAL APPROVALS OR GOVERNMENTAL
REGULATIONS.  PURCHASER AGREES THAT WITH
RESPECT TO THE PROPERTY IT WILL RELY UPON ITS INSPECTION THEREOF OR ITS 

 7
 

 

DETERMINATIONS NOT TO INSPECT THE SAME, AND UPON
CLOSING SHALL ACCEPT THE PROPERTY IN ITS “AS IS” CONDITION, WITH ALL FAULTS,
AND WITHOUT REFERENCE TO MERCHANTABILITY OR FITNESS FOR ANY SPECIFIC PURPOSE,
SUBJECT, HOWEVER, TO SELLER’S REPRESENTATIONS, WARRANTIES, COVENANTS AND
ASSURANCES SPECIFICALLY SET OUT HEREIN OR IN ANY CLOSING DOCUMENTS.

5.16         ENVIRONMENTAL RELEASE.  EXCEPT WITH RESPECT TO ANY BREACH OF SELLER’S
REPRESENTATION AND WARRANTY SET FORTH IN SECTION 5.6 ABOVE, PURCHASER, FOR
ITSELF AND FOR ANY ENTITY AFFILIATED WITH PURCHASER, WAIVES AND RELEASES SELLER
FROM AND AGAINST ANY LIABILITY OR CLAIM RELATED TO THE PROPERTY ARISING UNDER
THE COMPREHENSIVE ENVIRONMENTAL RESPONSE, COMPENSATION, AND LIABILITY ACT OF
1980, THE SUPERFUND AMENDMENTS AND REAUTHORIZATION ACT OF 1986, THE RESOURCE
CONSERVATION AND RECOVERY ACT, AND THE TOXIC SUBSTANCE CONTROL ACT, ALL AS
AMENDED, OR ANY OTHER CAUSE OF ACTION BASED ON ANY OTHER STATE, LOCAL OR
FEDERAL ENVIRONMENTAL LAW, RULE OR REGULATION, PROVIDED HOWEVER, THE FOREGOING
RELEASE SHALL NOT OPERATE TO RELEASE ANY CLAIM BY PURCHASER AGAINST ANY PERSON
OR ENTITY OTHER THAN SELLER OR ANY ENTITY THAT IS AN AFFILIATE OF SELLER;
FURTHER, THE FOREGOING RELEASE SHALL NOT OPERATE TO  RELEASE (I) ANY CLAIM BY PURCHASER
AGAINST SELLER ARISING OUT OF OR RELATING TO A BREACH BY SELLER OF ANY OF ITS
REPRESENTATIONS AND WARRANTIES IN THIS AGREEMENT OR IN ANY CLOSING DOCUMENTS;
OR (II) ANY CLAIM AGAINST SELLER FOR CONTRIBUTION OR INDEMNITY ARISING OUT
OF OR RELATING TO A CLAIM OR CAUSE OF ACTION ASSERTED AGAINST PURCHASER BY A
THIRD PARTY OR GOVERNMENTAL AGENCY ARISING OUT OF AN  ENVIRONMENTAL CONDITION AT THE PROPERTY.  THE PROVISIONS OF THIS PARAGRAPH SHALL
SURVIVE THE CLOSING OR ANY EARLIER TERMINATION OF THIS AGREEMENT.

5.17         Limitation.  The representations and warranties of Seller
as contained in this Agreement shall survive for a period of twelve (12)
months from and after the Closing Date. 
In the event Purchaser obtains actual knowledge of any breach and/or
violation of any of Seller’s representations and warranties prior to Closing
and (a) Purchaser fails to give Seller notice thereof or
(b) following notice thereof, Seller fails or is unable to cure any such
breach or violation to the reasonable satisfaction of Purchaser, without
modifying the underlying factual basis of such representation or warranty,
then, subject to the “Basket” (as defined below), Purchaser’s sole remedy for any
such breach or violation shall be to terminate this Agreement by delivering
written notice of such termination to Seller on or before the Closing Date
whereupon the Deposit shall be returned to Purchaser and neither party shall
have any obligation hereunder, except those that expressly survive the
termination of this Agreement; provided, however, if the applicable
representations and warranties were not true as of the Effective Date or the
breach or violation thereof was the result of Seller’s grossly negligent or
intentional act, then in addition, Seller shall reimburse Purchaser for
Purchaser’s Out-of-Pocket Expenses, up to a maximum amount not to exceed One
Hundred Fifty Thousand ($150,000.00) Dollars. 
If Purchaser commences any action(s) to enforce any alleged breach
and/or violation of any of the 

 8
 

 

representations and/or warranties of Seller as set
forth in this Agreement of which Purchaser becomes aware after Closing, then
Purchaser’s sole remedy shall be to seek recovery of its actual damages (but not
special, consequential, speculative, punitive or other damages, all of which
are waived by Purchaser), provided, in no event may the amount of such damages,
in the aggregate (with respect to any and all such breaches and/or violations
for all of the Property) exceed One Million Five Hundred Thousand Dollars
($1,500,000.00) (the “Cap”).  Notwithstanding the foregoing, Seller shall
not have any liability for cure of Seller’s breach and/or violation of Seller’s
representations and warranties hereunder, whether before or after Closing,
unless and until the aggregate amount of claims by Purchaser as a result of all
breaches and violations of Seller exceeds $10,000 (the “Basket”),
in which case Seller’s liability shall be limited to amounts in excess of the
Basket.

5.18         Representations Re-made as of
Closing.  Each of the representations
and warranties contained in this Section 5 shall be deemed to have been
remade by Seller as of the “Closing Date” (as defined in Section 9.1).

6.             Purchaser’s
Representations and Warranties. 
Purchaser represents and warrants to Seller as follows:

6.1           Authority.  Purchaser is a limited liability company duly
organized, validly existing and in good standing under the laws of the State of
Delaware.  Purchaser has the full right
and authority to enter into this Agreement and consummate the transaction
contemplated by this Agreement.  All
requisite limited liability company action has been taken by Purchaser in
connection with the entering into of this Agreement, the instruments referenced
herein, and the consummation of the transaction contemplated hereby.  Each of the persons and entities signing this
Agreement on behalf of Purchaser is authorized to do so.  Purchaser shall furnish to Seller any and all
documents to evidence such authority as Seller shall reasonably request.

6.2           Consents; Binding Obligations.  No third party approval or consent is
required to enter into this Agreement or to consummate the transaction
contemplated hereby.  This Agreement and
all documents required hereby to be executed by Purchaser are and shall be
valid, legally binding obligations of and enforceable against Purchaser in
accordance with their terms.

6.3           Compliance With Anti-Terrorism
Laws.  Neither Purchaser nor any of
its constituent partners, members or shareholders, nor any beneficial owner of
Purchaser or of any such partner, member or shareholder (i) is listed on
the Specially Designated Nationals and Blocked Persons List maintained by the
OFAC pursuant to the Order; (ii) is listed on any other list of terrorists
or terrorist organizations maintained pursuant to the Orders; (iii) is
engaged in activities prohibited in the Orders; or (iv) has been
convicted, pleaded nolo contendere, indicted, arraigned or custodially detained
on charges involving money laundering or predicate crimes to money laundering.

6.4           Representations Re-made as of
Closing.  Each of the representations
and warranties contained in this Section 6 shall be deemed to have been
remade by Purchaser as of 

 9
 

 

the date of Closing and shall survive Closing for a
period of six months from and after the Closing Date.

7.             Covenants.  Seller covenants to Purchaser as follows:

7.1           Leasing Activities Until Closing.  Subsequent to the Effective Date and prior to
Closing, Seller will not enter into any new lease or any renewal, amendment,
modification or termination of an existing Lease (a “Proposed
Lease”) without Purchaser’s express, prior, written consent to such
Proposed Lease, unless such Proposed Lease is required by law or the terms of a
pre-existing Lease, contract or other agreement of which Purchaser has been
given a copy prior to the Effective Date; provided, however, that if Purchaser
has given such consent or if such Proposed Lease is permitted for the reasons
described above, Purchaser will be liable for any leasing commissions, tenant
finish costs or other contractual obligations arising from such Proposed Lease
(except as provided below).  Seller
agrees to pay or discharge at or prior to Closing (or to credit Purchaser at
Closing as provided below) all leasing commissions, tenant finish costs, lease
buyout costs, moving allowances, design allowances, legal fees and other costs,
expenses and allowances incurred in order to induce a tenant to enter into a
Lease or Lease renewal or extension or otherwise set forth in a Lease
(collectively, “Leasing Costs”) that are or will
become due and payable with respect to Leases in force as of or prior to the
Effective Date; provided, however, that with respect to Leasing Costs that are
not due and payable as of or prior to the Closing, Seller shall give Purchaser
a credit at Closing in the amount of such Leasing Cost(s) instead of paying or
discharging same.  Notwithstanding the
foregoing, and without limiting the generality of the foregoing, Seller and Purchaser
specifically agree that Seller shall be responsible for, and shall provide a
credit at Closing against the Purchase Price equal to the amount of all Leasing
Costs associated with the tenant known as Mexican Post, including, without
limitation, tenant finish costs and commissions (the “Mexican Post
Credit”).

7.2           City Certificate.  Seller shall use commercially reasonable
efforts to deliver to Purchaser a certification statement issued by the
Philadelphia Department of Licenses and Inspections (the “Department
of Licenses and Inspections”) dated no earlier than thirty (30) days
prior to the Closing (the “City Certificate”),
stating the zoning classification of the Property, confirming that the use of
the Property is in compliance therewith, and confirming that there are no
outstanding violations of any applicable federal, state, county or municipal
laws, ordinances, codes, rules, regulations, orders, requirements, covenants,
conditions, restrictions, including, but not limited to, any of the foregoing
governing zoning, planning, housing, building, safety, fire or environmental
conditions.  Purchaser acknowledges that
such City Certificate may not be available as described above, but Seller’s
inability to obtain City Certificate, despite Seller’s exercise of commercially
reasonable efforts, will not constitute a default by Seller.

7.3           Generally.  Until the earlier of Closing or the
termination of this Agreement, Seller undertakes and agrees as follows:

(a)           To not do anything which would impair
or modify the status of title as shown on the Title Commitment or the Survey.

 10
 

 

(b)           To operate and manage the Property
pursuant to customary industry practices for the same type of property,
maintaining present services, reasonable wear and tear excepted and damage by
fire or other casualty excepted, and to maintain present insurance coverage.

(c)           To perform when due all of its
obligations under the Leases, the Service Contracts and the Permitted
Exceptions.

(d)           To not remove any of the Personal
Property from the Real Property unless replaced by personal property of equal
or greater utility or value.

(e)           To use commercially reasonable
efforts to obtain and deliver to Purchaser, no later than three (3)
business days before the Closing Date (the “Estoppel
Return Date”) a signed estoppel certificate in the from attached
hereto as Exhibit C from each of the tenants under the Leases
(except that if any Lease prescribes a different form of estoppel certificate,
Seller will only be required to use commercially reasonable efforts to obtain
an estoppel certificate from such tenant in such prescribed form).  Seller shall deliver each executed tenant
estoppel to Purchaser (regardless of whether it complies with this Agreement)
promptly following Seller’s receipt thereof.

(f)            Prior to Closing, not to enter into
any new service contract (except for any Service Contract which has a term of
30 days or less or is cancelable upon Closing at no cost to Purchaser), without
the prior consent of Purchaser, which consent shall not be unreasonably
withheld, conditioned or delayed; and not to modify or terminate in any
material respect any of the Service Contracts.

(g)           Not to transfer or encumber any of
Seller’s interest in the Property. 
Nothing contained in this Section 7.3(g) or elsewhere in this
Agreement shall be deemed to restrict or otherwise affect Seller’s ability to
enter into any contract for sale of the Property or otherwise deal with the
Property in any manner it chooses following the termination of this Agreement.

(h)           Maintain the status, as of the
Effective Date, of all permits, licenses and occupancy certificates, including,
without limitation, all development, building and use permits and certificates
of occupancy.

(i)            Perform, when due, all material
obligations under any and all agreements relating to the Property and otherwise
in accordance with applicable laws, ordinances, rules and regulations.

(j)            Promptly provide Purchaser with
copies of (1) any default letters sent to or from tenants of the Building,
(2) any copies of correspondence received from a tenant stating that such
tenant is totally vacating its premises in the Building or seeking to re-negotiate
its Lease, and (3) notices of bankruptcy filings received with respect to
any tenant of the Building.

(k)           Promptly forward to Purchaser any
notices of code violations Seller receives.

 11
 

 

(l)            Promptly notify Purchaser of any
facts of which Seller obtains knowledge which would cause any of the
representations and warranties of Seller contained in this Contract to become
false or misleading.

(m)          To cooperate with Purchaser to obtain
subordination, non-disturbance and attornment agreements (“SNDAs”)
from tenants under Leases selected by Purchaser’s lender.  As and when received by Seller, Seller shall
deliver the executed SNDAs to Purchaser. 
If the transaction contemplated herein fails to close for any reason
whatsoever, Purchaser shall return to Seller all such executed SNDAs previously
delivered to Purchaser.  The failure to
obtain SNDAs from all or any of the selected tenants shall not constitute a
default by Seller hereunder nor shall it otherwise entitle Purchaser to
terminate this Agreement.

(n)           Not to apply or forfeit to the
applicable tenant any security deposits under any Leases, without Purchaser’s
prior consent, in Purchaser’s sole and absolute discretion.

(o)           Promptly deliver to Purchaser any
updated or new installments of any reports, materials or other information
provided to Purchaser as part of the Seller’s Deliveries.

8.             Conditions
Precedent.

8.1           Generally.  Unless waived by the party entitled to the
benefit thereof, the obligations of either party to close under this Agreement
are subject to satisfaction of the conditions that all representations and
warranties of the other party contained in this Agreement are true and correct
in all material respects as of Closing and that the other party has performed
all material covenants, agreements and obligations required to be performed by
it under this Agreement.

8.2           Title Policy.  It is a condition precedent to Purchaser’s
obligations to close the transaction contemplated by this Agreement that, as of
the Closing, the Title Company has issued, or unconditionally committed to
issue, to Purchaser the Title Policy.

8.3           Estoppels.  It is a condition precedent to Purchaser’s
obligations to close the transaction contemplated by this Agreement that
Purchaser has timely received and approved the originals of the Tenant estoppel
certificates described in Section 7.3(e); provided, however, that this
condition will be deemed to be satisfied if Seller so delivers “Conforming
Estoppels” (as defined below) from excelleRx, American International Insurance,
Philadelphia Municipal Authority, Thermo Electron, Allstate Insurance, Reliance
Insurance and Drexel University (collectively, the “Required
Tenants”) and from tenants occupying space in the Building that,
together with the space occupied by the Required Tenants, is equal to or
greater than 75% of the space occupied by tenants in the Building. As used
herein, a “Conforming Estoppel” will mean either
(a) an estoppel certificate signed by the applicable tenant and in the
form of Exhibit C (or if any Lease prescribes a different form of
estoppel certificate, then an estoppel certificate for such Lease in such
prescribed form will also be deemed acceptable), with all blanks filled in with
information that conforms to the information provided set forth in the rent
roll delivered as part 

 12
 

 

of Seller’s Deliveries and with no additional
information added that is inconsistent with the statements set forth in such
form or with the information set forth in such rent roll and confirming there
is no default by either party to the Lease; or (b) an estoppel certificate
that is otherwise acceptable to Purchaser and its purchase money lender in
their respective sole discretion, provided that if Seller delivers a signed
estoppel certificate to Purchaser for review and Purchaser does not notify
Seller that such estoppel certificate is unacceptable within five (5)
business days after Purchaser’s actual receipt thereof, then such estoppel
certificate will be deemed to be acceptable to Purchaser.

8.4           Suits, Actions, Proceedings.  It is a condition precedent to Purchaser’s
obligations to close the transaction contemplated by this Agreement that no
suit, action or other proceeding shall be pending which seeks to restrain,
enjoin or otherwise prohibit the consummation of the transaction contemplated
by this Agreement, or except for those suits, actions or proceedings disclosed
in Seller’s Deliveries (including, without limitation, Seller’s insurance
claims report), which involves or affects the Property or any Required Tenant
in any material way.

8.5           Material Adverse Change.  It is a condition precedent to Purchaser’s
obligations to close the transaction contemplated by this Agreement that the
environmental and physical condition of the Property shall not change adversely
and materially after the Effective Date hereof.

8.6           City Certificate.  It is a condition precedent to Purchaser’s
obligations to close the transaction contemplated by this Agreement that Seller
deliver a City Certificate to Seller on or before the Closing Date, with the
content of such City Certificate being that which is available from the
Department of Licenses and Inspections.

8.7           Failure of Purchaser’s Conditions
Precedent.  In the event any of the
aforesaid conditions precedent to Purchaser’s obligation to close shall not
have been satisfied or shall not exist on the Closing Date, then, unless
Purchaser shall have waived in writing the satisfaction or existence of such
condition precedent, in its election and in its sole and subjective discretion,
Purchaser shall not be obligated to close the transaction contemplated hereby,
and Purchaser shall be entitled to receive a return of the Deposit with any
interest accrued thereon.  If the failure
of any condition precedent constitutes a default by Seller under this
Agreement, Purchaser shall have the remedies provided by Section 14.1
herein; otherwise, upon receipt of the Deposit by Purchaser, Purchaser and
Seller shall both be relieved of any further liability or obligation
hereunder.  The foregoing
notwithstanding, if the Tenant estoppel condition described in Section 8.3
above is not fulfilled as of the Estoppel Return Date (as defined in
Section 7.3(e) above), then, in addition to Purchaser’s options set forth
above, Purchaser and Seller shall each have the option to extend the Closing
Date for up to fourteen (14) days to allow Seller more time to obtain
additional estoppel certificates (in which event Seller shall continue to use
commercially reasonable efforts to obtain the necessary estoppel certificates);
thereafter, if the Tenant estoppel condition is still not fulfilled on or
before the expiration of the fourteen (14) day extension period, then Purchaser
may elect to either waive the Tenant estoppel condition and close or terminate
this Agreement and receive a return of the Deposit as provided above.

 13
 

 

9.             Closing.  Purchaser and Seller agree that the purchase
and sale of the Property will be consummated as follows:

9.1           Time of Closing.  Subject to Section 9.2 below, the
Closing shall take place in the offices of the Title Company at a time mutually
agreeable to Purchaser and Seller, but no later than 2:00 p.m.
Philadelphia, Pennsylvania time, on (a) October 25, 2006, or (b) such
earlier date as may be mutually agreed to by the parties (the “Closing Date”).  If
the payoff to Seller’s lender is not funded out of escrow and received by such
lender on the Closing Date and the delay is due solely to Purchaser’s default
under this Agreement, then Purchaser shall be liable for any interest,
penalties or other costs incurred by Seller as a result of the failure of the
payoff to reach such lender on the Closing Date.  If Closing does not occur, the Deposit shall
be returned to Purchaser, retained by Seller, or otherwise dealt with, all as
provided elsewhere in this Agreement. 
The Closing Date may be extended as provided in Section 8.7 above
and Sections 14.1 and 14.2 below.

9.2           Escrow and Mechanics of Closing.

(a)           The Closing of the sale of the
Property shall take place through an escrow (“Escrow”)
to be established with the Escrow Agent. 
Escrow shall be deemed open upon delivery of a fully executed copy of
this Agreement to the Escrow Agent.  Upon
any termination of this Agreement or cancellation of the Escrow, the Escrow
Agent shall be instructed by Seller and Purchaser to forthwith return to the
party that delivered such item or items all monies and documents previously
delivered to the Escrow Agent hereunder. 
Except as otherwise provided herein, the termination of Escrow and this
Agreement and/or the return of deposited funds or documents shall not
constitute a waiver, release or discharge of any breach or default that has
occurred in the performance of either party’s obligations, agreements,
covenants, representations or warranties contained herein.

(b)           Any of the items required to be
delivered by Seller and/or Purchaser, respectively, as set forth in
Section 9.3, may be delivered by Seller or Purchaser to the Escrow Agent
to be held in Escrow, and disbursed by the Escrow Agent at Closing, in
accordance with escrow instructions to be delivered by Seller and Purchaser
prior to Closing.

9.3           Closing Documents.  Seller and Purchaser will deliver or cause to
be delivered to each other at Closing, as appropriate, the following items (all
documents will be duly executed and acknowledged where required):

(a)           Special Warranty Deed.  A special warranty deed, in the form attached
hereto as Exhibit D, conveying to Purchaser the Real Property.

(b)           Bill of Sale.  A bill of sale with all warranties of title,
in the form attached hereto as Exhibit E, conveying all of Seller’s
right, title and interest in and to the Personal Property.

(c)           Assignment and Assumption of
Leases.  An assignment and assumption
of leases, in the form attached hereto as Exhibit F, pursuant to which
Seller will assign all of its right, title and interest in and to the Leases to
Purchaser but, subject to the terms of 

 14
 

 

Section 10.1, will
retain the right to receive and collect any rents due from the tenants under
the Leases prior to Closing.  Seller
shall make available to Purchaser at the Property, the originals (or copies, if
originals are not available) of all of the Leases, including all amendments and
modifications thereto.

(d)           General Assignment.  A general assignment, in the form attached
hereto as Exhibit G, pursuant to which Seller will assign to Purchaser
all of Seller’s right, title and interest in and to the Service Contracts, the
Permits, the Warranties, the Plans and the Trade Name Rights.

(e)           Title Policy.  In accordance with the other terms and
conditions of this Agreement, the Title Policy or an unconditional commitment
by the Title Company to issue the Title Policy promptly after Closing.

(f)            Non-foreign Affidavit.  An affidavit of Seller that evidences that it
is exempt from the withholding requirements of Section 1445 of the Code.

(g)           Conveyance Information.  Such affidavits, instruments and documents,
such as tax reporting statements or forms, as are customarily required in
connection with a transfer of commercial real property in Philadelphia,
Pennsylvania, including such affidavits as the Title Company may require with
respect to mechanic’s liens, gap coverage and parties in possession.

(h)           Settlement Sheets and Funds.  Settlement statements reflecting the Purchase
Price and all adjustments and prorations to be made thereto pursuant to this
Agreement including, without limitation, Section 10 below, together with
any amounts, in immediately available funds, required to be paid by either
party thereunder.

(i)            Keys.  Seller will make available to Purchaser all
of the keys to the Property.

(j)            Tenant Letters.  Seller will deliver notice to all tenants in
the Building regarding Purchaser’s purchase of the Property.  Such notice shall be in the form of the
notice attached hereto as Exhibit H.

(k)           Seller’s Authority.  Seller’s authority documents and information
as required by Section 4.1.

(l)            Service Provider Notices.  Seller shall deliver to Purchaser one
original notice to each service provider under the Service Contracts, advising
each such service provider of the sale of the Property and the assignment of
its Service Contract to Purchaser, in a form reasonably acceptable to Purchaser
and Seller.

(m)          Rent Roll.  Seller shall deliver to Purchaser an updated,
certified rent roll for the current month, current within three (3)
business days of the Closing Date.

(n)           Certificate of Representations and
Warranties.  Seller and Purchaser
shall each execute and deliver a certificate stating that all of its respective
representations and 

 15
 

 

warranties under this
Agreement remain true and correct as of the Closing Date or stating any
then-existing facts that would cause the applicable representations or
warranties to be untrue and/or incorrect.

(o)           City Certificate.  Seller shall deliver to Purchaser the City
Certificate described in Section 7.2 and required by Section 8.6.

(p)           Bulk Sales Documents.  Seller will deliver to Purchaser all then-available
Clearance Certificates and/or the Bulk Sales Indemnity, all as contemplated by
Section 15.21 below.

9.4           Additional Deliveries.  On the Closing Date, Seller will turn over to
Purchaser the originals of the Leases, the Service Contracts, all written
Permits and Warranties, the Plans and, to the extent requested by Purchaser
(which obligation will survive Closing), those Seller’s Deliveries for which
originals exist, all to the extent in Seller’s physical possession or located
at the Building.

9.5           Letters of Credit as Security
Deposits.  To the extent that any
security deposit is composed of a letter of credit (a “Letter of
Credit”): (i) Seller shall make commercially reasonable efforts
to have the same assigned and/or transferred, at Purchaser’s expense (or the
applicable tenant’s expense), to Purchaser as of the Closing and (ii) if
not assignable and/or transferable as of Closing, Seller shall cooperate with
Purchaser in all reasonable respects following the Closing so as to assign
and/or transfer each Letter of Credit to Purchaser or to obtain a replacement
letter of credit in favor of Purchaser. 
After Closing, if such assignment, transfer and/or replacement of a
Letter of Credit has not yet occurred, and if Purchaser believes, in good
faith, as the landlord under the Lease for which the applicable Letter of
Credit has been issued, that drawing on a Letter of Credit is permitted under
the terms of the applicable Lease, then until any such Letter of Credit shall
be assigned, transferred or replaced from Seller to Purchaser, Purchaser may
notify Seller of Purchaser’s election to draw on the Letter of Credit.  In connection with such notice, Purchaser
will deliver to Seller such documentation as Purchaser reasonably determines to
be necessary to accomplish such draw. 
Promptly (in no event more than five (5) business days) after receipt of
such notice and the applicable documentation, Seller shall submit such
documentation to the issuer.  Seller will
cooperate with Purchaser to re-submit documentation as may be reasonably
necessary to accomplish such draw.  When
and if the issuer delivers the proceeds to Seller, Seller will promptly (in no
event more than five (5) business days) deliver such proceeds to Purchaser
following Seller’s receipt thereof. 
Purchaser shall defend, indemnify and hold harmless Seller from and
against any and all loss, cost, damage, liability or out-of-pocket expense
incurred by Seller as a result of any such actions taken by Seller at Purchaser’s
request.  Seller shall defend, indemnify
and hold harmless Purchaser from and against any and all loss, cost, damage,
liability or out-of-pocket expense incurred by Purchaser only if Seller fails
to take an affirmative action to draw upon a Letter of Credit after notice and
delivery of to Seller of the applicable notice and documentation as set forth
above.  The parties’ obligations under
this Section 9.5 will survive Closing.

9.6           Survival.  The obligations of Seller under this
Section 9, to the extent not fully discharged or as of Closing, shall
survive the Closing, including, but not limited to, the

 16

 

obligation to deliver tenant notices and the
obligation to cooperate with Purchaser with respect to any letters of credit
that serve as security deposit.

10.          Adjustments
and Prorations.  The following
adjustments and prorations will be made at Closing and reflected, where
appropriate, on the settlement sheets described in Section 9.3(h) above:

10.1         Lease Rentals.  Prepaid rent and collected rent under the
Leases shall be prorated as of the Closing Date.  As a general matter Seller will receive all
rents (including all accrued tax and operating expense pass-throughs), charges
and other revenue of any kind receivable from the Leases up to the Closing
Date; provided that no proration will be made with respect to any delinquent
rents of any kind receivable from the Leases for any period before
Closing.  Rents collected from any tenant
by Seller after the Closing Date shall be deemed to apply first to the rentals
for the month of Closing, second to current rental due at the time of payment,
and then to any other rentals that are delinquent on the Closing Date.  Unpaid and delinquent rents, to which Seller
is entitled, shall be turned over to Seller if collected by Purchaser within
thirty (30) days of receipt. 
Purchaser agrees to use commercially reasonable efforts to attempt to
collect such rents; provided Purchaser shall not be obligated to evict any
tenant or enforce any remedies of the Lease or file any legal action in
connection therewith.  Seller shall not
initiate any suit against any tenant with regard to delinquent rent so long as
such tenant remains a tenant of the Property.

10.2         Ad Valorem Taxes and Assessments.  All real estate and personal property taxes
attributable to the Property will be prorated at Closing.  Seller will pay all such taxes attributable
to any period prior to the Closing Date. 
If the applicable tax rate and assessments for the Property have not
been established for the year in which Closing occurs, the proration of real
estate and/or personal property taxes, as the case may be, will be based upon
the rate and assessments for the preceding year, and thereafter, once the
actual tax rate and assessments have been established, the parties shall make
appropriate post-Closing adjustments in cash (and this obligation shall survive
the Closing).  All taxes imposed because
of a change of use of the Property after Closing will be paid by
Purchaser.  Anything herein to the
contrary notwithstanding, all assessments imposed by any governmental agency
(herein “Assessments”) for improvements to the
Real Property for work substantially completed on or before the Closing Date
shall be paid in full by Seller at Closing. 
Any other Assessments for improvements to the Real Property shall be
paid by Seller or Purchaser depending on whether the particular assessment or
installment thereof comes due before or after the Closing Date.

10.3         Operating Expenses.   Tenants under the Leases are currently
paying Seller certain amounts (referred to herein as “Tenant Reimbursements”)
based on Seller’s estimates for real estate taxes and assessments, common area
maintenance, operating expenses and similar expenses (collectively, “Tenant Reimbursable Expenses”).  Tenant Reimbursements shall be provisionally
adjusted as of the Closing Date.  In the
event that any Tenant Reimbursements or the calculation thereof is subject to
adjustment pursuant to the terms and provisions of any Lease (e.g., year-end
adjustments to escalation charges and the like), then after the amount of such
Tenant Reimbursements is finally determined by Purchaser (which determination
shall be made on or before January 31, 2007), the parties shall make the
proper adjustments so that the proration will be accurate based upon the actual
amount of such Tenant 

 17
 

 

Reimbursements collected and the actual Tenant Reimbursable
Expenses incurred for the period in question, and payment shall be made
promptly to Purchaser or Seller, whichever may be entitled to such payment, by
the other party for the purpose of making such adjustment.  After Closing, Purchaser shall promptly bill
the tenants for Tenant Reimbursable Expenses payable under the Leases and
continue to bill such tenants for such amounts each month.  In the event Seller shall be obligated to
make, and makes a payment to Purchaser upon Purchaser’s reconciliation of
Tenant Reimbursements collected and the actual Tenant Reimbursement Expenses
incurred as aforesaid, upon receipt Purchaser shall be obligated to promptly
remit the applicable portion of the particular tenants entitled thereto.  Seller will be entitled to a credit at
Closing for the amount of any deposits Seller has made with any of the
utilities services or companies servicing the Property.  Purchaser will arrange with all utilities
services and companies servicing the Property to have new accounts started in
the name of Purchaser beginning at 12:01 a.m. on the Closing Date.

10.4         Excise, Transfer and Recording Taxes.  Purchaser and Seller will each pay one-half
of the applicable Commonwealth of Pennsylvania and City of Philadelphia
transfer, excise and recording taxes applicable to the sale of the
Property.  Except as provided above,
Purchaser will be responsible for the payment of all excise, sales and use
taxes imposed with respect to the transaction contemplated by this Agreement
and will indemnify and hold Seller harmless from the payment of such taxes.

10.5         Credits at Closing.  At Closing, Seller will provide Purchaser
with a credit against the Purchase Price of (a) $90,000.00 relating to
physical conditions and code compliance that Purchaser may need to repair or
rectify after Closing, which credit is in full settlement of any claims
Purchaser may have relative to the physical condition and/or and code
compliance of the Property (except for a breach of a representation and
warranty set forth in this Agreement); and (b) the Mexican Post Credit
described in Section 7.1.

10.6         Closing Costs.  Purchaser will pay (a) one-half of the
Escrow Agent’s closing fee; (b) the Title Company’s premium for the Title
Policy, including the costs of any endorsements thereto; (c) the cost of
recording Seller’s deed to Purchaser (other than the recording tax contemplated
by Section 10.4) and any other documents requiring recording in connection
with Purchaser’s acquisition of the Property; (d) all costs incurred by
Purchaser in connection with Purchaser’s investigations of the Property;
(e) the cost of updating the Survey; and (f) Purchaser’s attorneys’
fees.  Seller will pay (i) one-half
of the Escrow Agent’s closing fee; (ii) the cost of recording documents
related to the release of any mortgage or other lien on the Property arising
by, through or under Seller; and (iii) Seller’s attorneys’ fees.

10.7         Insurance.  Purchaser understands that Seller will cause
all property and liability insurance currently being carried by Seller to be
canceled at Closing, and Purchaser will be responsible for obtaining new
insurance coverage with respect to the Property as of Closing.

10.8         Date of Prorations.  The prorations and adjustments provided for
in this Section 10 will be made so that Purchaser will receive the income
and be charged with the expense of the operation of the Property for the
Closing Date and thereafter.

 18
 

 

10.9         Survival.  The parties’ obligations under this
Section 10, to the extent not fully discharged by or through Closing, will
survive Closing and remain fully enforceable thereafter.

11.                               Casualty
Damage.

11.1         Notice and Estimate.  In the event that the Improvements are
damaged by any casualty prior to Closing, Seller will promptly give Purchaser
written notice of such occurrence, and as soon thereafter as practicable, will
provide Purchaser with an estimate made by an architect, engineer or contractor
selected by Seller and approved by Purchaser (which approval will not be
unreasonably withheld or delayed) of the cost and amount of time required to
repair such damage.  If it is so
estimated that it will take longer than until the Closing Date to repair such
damage and if neither party terminates this Agreement pursuant to Section 11.3,
then Purchaser will be given an opportunity to review and approve any
construction contract which Seller proposes to enter into to have such damage
repaired and Purchaser will not unreasonably withhold or delay such approval.

11.2         Minor Damage.  If the estimated cost of repairing such
damage is less than $1,000,000.00, then Seller will promptly contract for and
commence the repairs and complete so much thereof as may be accomplished prior
to the Closing Date.  In the event such
repairs are not completed on or before the Closing Date, Seller will assign to
Purchaser so much of the insurance proceeds resulting from such damage as have
not then been expended for repairs, along with any business loss insurance
proceeds, and Seller will assign to Purchaser, and Purchaser will assume, the
rights and obligations under the construction contract pursuant to which such
repairs are being completed.  Seller will
also credit Purchaser for the amount of any deductible or self-insured
retention amount.

11.3         Major Damage.  If the estimated cost of such repairs is
$1,000,000.00 or more, then Purchaser may elect to terminate this Agreement
upon written notice to Seller given within 10 days after both parties’ receipt
of the estimate, in which event the Escrow Agent will return the Deposit to
Purchaser and both parties will be relieved of any further obligations
hereunder, except for those obligations which expressly survive any termination
hereof; however, if neither party elects to so terminate this Agreement, then
this Agreement will remain in full force and effect and the parties will
proceed in accordance with Section 11.2.

12.                               Condemnation.

12.1         Notice.  If prior to Closing Seller learns of any
actual or threatened taking in condemnation or by eminent domain (or a sale in
lieu thereof) of all or any portion of the Real Property, Seller will notify
Purchaser promptly thereof.

12.2         Termination.  Other than with respect to an “Immaterial
Taking” (as defined below), any actual or threatened taking or condemnation for
any public or quasi-public purpose or use by any competent authority in
appropriate proceedings or by any right of eminent domain of all or any part of
the Real Property between the date of this Agreement and the Closing Date will,
at Purchaser’s option, cause a termination of this Agreement.  The election to terminate provided hereby
must be exercised by Purchaser (or will be deemed to have been 

 19
 

 

waived) by notice to Seller to that effect given
within 15 days following Purchaser’s receipt of Seller’s notice pursuant to
Section 12.1 above.  Upon delivery of
such termination notice, the Escrow Agent will return the Deposit to Purchaser
and both parties will be relieved of any further obligations hereunder, except
for those obligations which expressly survive any termination hereof.  If Purchaser does not elect to so terminate
this Agreement, or in the event of an Immaterial Taking, Seller will be
relieved of all obligations under this Agreement with respect to the portion of
the Real Property so taken or condemned, but Purchaser will be entitled to
receive all proceeds of any such taking or condemnation, and Seller agrees that
it will not make any adjustment or settlement of any such taking or
condemnation proceeding without Purchaser’s consent and will take at Closing
all actions reasonably available to Seller to assign its entire interest in
such award to Purchaser.  An “Immaterial Taking” means any taking or condemnation for any
public or quasi-public purpose or use which does not impair access or take any
part of the Improvements.

13.                               Deposit.  By its execution of this Agreement, the
Escrow Agent agrees to receive, invest and apply the Deposit in accordance with
the terms and provisions hereof.  In the
event of any dispute between Purchaser and Seller as to the proper application
of the Deposit, the Escrow Agent may commence an action in the applicable
Commonwealth of Pennsylvania court, pay the Deposit to such court and
interplead Purchaser and Seller to such action, whereupon the Escrow Agent will
be dismissed from such action and relieved of any further obligations with
respect to the Deposit.  Purchaser and
Seller hereby agree to submit to the jurisdiction of such court for the purpose
of any such action.

14.                               Remedies.

14.1         Breach by Seller.  In the event of a default by Seller
hereunder, Purchaser shall give Seller written notice of such default (not more
than ten (10) days after Purchaser acquires knowledge of such default;
provided no notice shall be required for Seller’s failure to proceed to Closing
on the Closing Date) and if Seller has not cured such event of default within
ten (10) days following Seller’s receipt of such default notice (or such
additional time as reasonably necessary in the event such default cannot be
cured within such ten (10) day period and Seller promptly commences to
cure the same and diligently prosecutes the same to completion) (and to the
extent the Closing Date is less than ten (10) days after such notice, the
Closing Date will be re-scheduled to the next business day immediately
following the expiration of such cure period), then Purchaser as its sole and
exclusive remedy shall be entitled to either: (i) seek specific
performance of this Agreement, but not damages, in a court of competent
jurisdiction (provided an action is commenced no later than 60 days after
Purchaser became aware of such default), or (ii) terminate this Agreement
and receive back the Deposit plus any accrued interest and the parties shall
thereafter have no further rights or obligations pursuant to this Agreement
except those obligations that expressly survive such termination.  If Purchaser fails to give Seller notice of
any such default and proceeds with Closing, then Purchaser shall have waived
its rights to assert any claim for the applicable default.  The parties agree that Purchaser’s actual
damages would be difficult or impossible to determine if Seller defaults and
the ownership of the Property has a unique value to Purchaser which is not
adequately capable of being compensated through the payment of damages.  Therefore, it is specifically acknowledged
and agreed that Purchaser shall be entitled to the remedy of specific
performance in connection with any such default, in the event Purchaser elects
to pursue such remedy as herein provided. 

 20
 

 

Notwithstanding any of the foregoing, in the event of
a willful default by Seller, said willful default being solely defined as
Seller refusing to convey the Property to Purchaser by the Closing Date in
accordance with this Agreement or any willful default by Seller of
Section 7 of this Agreement, Purchaser shall be entitled to the following
remedies in addition to the available remedy of specific performance:
(a) receive the return of its Deposit plus any accrued interest from the
Escrow Agent, and (b) upon the presentment of the appropriate documentation
to Seller, receive from Seller Purchaser’s Out-of-Pocket Expenses, up to a
maximum amount not to exceed One Hundred Fifty Thousand ($150,000.00) Dollars,
provided that Purchaser commences any such claim described above within
thirty (30) days of Seller’s willful default.

14.2         Breach by Purchaser.  In the event of a default by Purchaser
hereunder, other than failure to deliver the Purchase Price or otherwise
proceed to Closing on the Closing Date (for which no notice shall be required),
Seller shall give Purchaser written notice of such default (not more than
ten (10) days after Seller acquires knowledge of such default) and if
Purchaser has not cured such default within ten (10) days of Purchaser’s
receipt of such default notice (or such additional time as reasonably necessary
in the event such default cannot be cured within such ten (10) day period
and Purchaser promptly commences to cure the same and diligently prosecutes the
same to completion) (and to the extent the Closing Date is less than
ten (10) days after such notice, the Closing Date will be re-scheduled to
the next business day immediately following the expiration of such cure
period); the sole and exclusive remedy of Seller shall be to terminate this
Agreement, in which event Seller may retain the Deposit plus any accrued
interest as liquidated damages (and not as a penalty), and the parties shall
thereafter have no further rights or obligations pursuant to this Agreement
except those obligations that expressly survive such termination.  Purchaser and Seller have considered
carefully the loss to Seller if Purchaser fails to consummate the purchase and
sale contemplated herein for any reason other than Seller’s default hereunder
or the failure of condition precedent to Purchaser’s obligation to close
hereunder occasioned by taking the Property off the market as a consequence of
the negotiation and execution of this Agreement, the expenses of Seller
incurred in connection with the preparation of this Agreement and Seller’s
performance hereunder, and the other damages, general and special, which
Purchaser and Seller realize and recognize Seller will sustain but which Seller
cannot at this time calculate with absolute certainty.  Based on all those considerations, Purchaser
and Seller have agreed that the damage to Seller in such event would reasonably
be expected to be equal to the sum of the Deposit plus such accrued
interest.  The parties agree that it
would be extremely difficult or impossible to ascertain the actual damages
which would be suffered by Seller if Purchaser fails to perform its obligations
under this Agreement, and that the Deposit plus such interest is the best
estimate of the amount of damages Seller would suffer.

14.3         Limitation of Seller’s Liability.  No general or limited partner of Seller, nor
any of its respective beneficiaries, shareholders, partners, officers, members,
managers, agents, employees, heirs, successors or assigns shall have any
personal liability of any kind or nature for or by reason of any matter or
thing whatsoever under, in connection with, arising out of or in any way
related to this Agreement and the transactions contemplated herein, and
Purchaser hereby waives for itself and anyone who may claim by, through or
under Purchaser any and all rights to sue or recover on account of any such
alleged personal liability.  Seller’s
sole liability shall be limited to its interest in the Property.

 21
 

 

15.                               Miscellaneous.

15.1         Brokers.  Seller and Purchaser each hereby represents
and warrants to the other that its sole contact with the other or with the
Property in connection with the transaction contemplated by this Agreement has
been made without the assistance of any broker or other third party except for
Trammell Crow and Eastdil Secured (collectively, the “Brokers”).  Brokers represent Seller; Purchaser has not
engaged any broker.  Seller alone shall
be responsible to pay any and all compensation that may be due or payable to
the Brokers.  Subject only to Seller’s
obligation as set forth in the preceding sentences concerning the Brokers,
Seller and Purchaser agree to save and hold each other free, clear and harmless
from any claim, cost or expense, including reasonable attorneys’ fees, for or
in connection with any claims for commissions or compensation claimed or
asserted by or through each respective party in connection with the transaction
contemplated herein.

15.2         Entire Agreement.  No change or modification of this Agreement
shall be valid unless the same is in writing and signed by the parties
hereto.  No waiver of any of the provisions
of this Agreement shall be valid unless in writing and signed by the party
against whom it is sought to be enforced. 
This Agreement contains the entire agreement between the parties
relating to the purchase and sale of the Property.  All prior negotiations between the parties
are merged in this Agreement, and there are no promises, agreements,
conditions, undertakings, warranties or representations, oral or written,
express or implied, between the parties other than as expressly herein set
forth.

15.3         Survival.  Except as otherwise specified herein or as
set forth in the documents to be executed by Seller and/or Purchaser at
Closing, none of the parties’ representations, warranties, covenants and
agreements hereunder shall survive Closing.

15.4         Dates.  If any date set forth in this Agreement for
the delivery of any document or the happening of any event (such as, for
example, the occurrence of the Closing Date) should, under the terms hereof,
fall on a weekend or holiday, then such date shall be automatically extended to
the next succeeding weekday that is not a holiday.

15.5         Governing Law.  This Agreement shall be construed and
enforced in accordance with the laws of the Commonwealth of Pennsylvania.

15.6         Notices.  Any notice required or permitted to be sent
pursuant to this Agreement shall be in writing and shall be deemed received
when personally delivered, when sent by facsimile transmission, or three days
after having been deposited in a U.S. Postal Service depository and sent by
registered or certified mail, return receipt requested, with all required
postage prepaid, or one day after having been deposited with Federal Express or
another comparable national overnight delivery service with next-business-day
delivery service prepaid, and in any case, addressed:

 22
 

 

If to Seller, to:

AGL Investments
No.2 Limited Partnership L.L.L.P.

1050 Seventeenth
Street, Suite 1200

Denver, Colorado
80265

Attention:  D. Scott Gibler and Gabe Finke

Telecopy:  303-534-6713

With a copy to:

Otten, Johnson, Robinson,
Neff & Ragonetti, P.C.

950 Seventeenth Street, Suite 1600

Denver, Colorado  80202

Attention:  Christopher T. Toll

Telecopy:  (303) 825-6525

If to Purchaser, to:

c/o Behringer
Harvard

15601 Dallas
Parkway, Suite 600

Addison,
Texas  75001

Attention: Bill
Armendariz

Telecopy: (214) 655-1610

With a copy to:

Haynes and Boone,
LLP

901 Main Street,
Suite 3100

Dallas, Texas
75202

Attention: Brad Lowry

Telecopy: (214) 200-0516

If to Escrow Agent, to:

LandAmerica
Partners Title Company

712 Main Street,
Suite 2000E

Houston, TX  77002

Attention:  Reno Hartfiel

Telecopy:  (713) 229-8484

or to such other address of which, or such other
person of whom, any party notifies the other for such purpose in accordance
with this Section 15.6.

15.7         Headings.  The paragraph headings which appear in
some of the sections of this Agreement are for purposes of convenience and
reference and are not in any sense to be construed as modifying the sections in
which they appear.

 23
 

 

15.8         Assignment.  Purchaser may assign its rights under this
Agreement to an Affiliate without the prior written consent of Seller.  For purposes of this Section 15.8, the
term “Affiliate” shall mean: (a) an entity that controls, is controlled
by, or is under common control with Purchaser; (b) any partnership in
which Purchaser or Purchaser’s controlling member is the general partner;
(c) any fund or entity sponsored by Purchaser; or (d) any entity that
retains Purchaser or a company affiliated with Purchaser to manage the
Property, provided that Purchaser notifies Seller of such assignment at least
five business days prior to the Closing and, upon request, provides Seller with
reasonable evidence that such assignee is an Affiliate.  No such assignment shall release Purchaser
from any of its obligations hereunder.  
Except as expressly permitted above, Purchaser may not assign this
Agreement or any interest therein.

15.9         Successors and Assigns.  Subject to Section 15.8, this Agreement
shall be binding upon and inure to the benefit of the parties and their
respective heirs, personal representatives, successors and assigns.

15.10       Tax Deferred Exchange.  Purchaser and Seller have advised each other
that they may use this Property in connection with a 1031 or 1033 tax deferred
exchange.  Seller and Purchaser agree to
cooperate with each other and will execute such documents as may reasonably be
required by the other party in order to effectuate such tax deferred exchanges,
provided that neither party (a) will assume any liability or cost in
connection with the tax deferred exchange of the other party, and
(b) shall have any obligation to take title to, or first acquire, any
other property in connection with such qualified exchange.  Either party’s inability to obtain any
benefits for a tax deferred exchange under Section 1031 or 1033 of the
Internal Revenue Code will not relieve the other party of any of its
obligations under this Agreement.

15.11       Knowledge.

(a)           References
in this Agreement to the “knowledge” and/or “actual knowledge” of Seller, or
any words of similar import, shall refer only to the current actual (as opposed
to implied or constructive) knowledge of either D. Scott Gibler or Della
Wegman, and shall not be construed, by imputation or otherwise, to refer to the
knowledge of Seller or any parent, subsidiary or affiliate of Seller or to any
other officer, agent, manager, representative or employee of Seller or to
impose upon either D. Scott Gibler or Della Wegman any duty to investigate
the matter to which such actual knowledge, or the absence thereof, pertains.

(b)           D. Scott Gibler and Della Wegman
are the parties currently employed by Amstar Group, LLC who are primarily
responsible for the oversight of the management company for the Property.  Notwithstanding anything to the contrary contained
in this Agreement, neither D. Scott Gibler nor Della Wegman shall have any
personal liability hereunder.

(c)           References in this Agreement to the “knowledge”
and/or “actual knowledge” of Purchaser, or any words of similar import, shall
refer only to the current actual (as opposed to implied or constructive)
knowledge of Jon Dooley, and shall not be construed, by imputation or
otherwise, to refer to the knowledge of Purchaser or any parent, subsidiary or
affiliate of Purchaser or to any other officer, agent, manager, 

 24
 

 

representative or employee
of Purchaser or to impose upon John Dooley any duty to investigate the matter
to which such actual knowledge, or the absence thereof, pertains.

15.12       Books and Records. Purchaser shall
maintain, preserve and, upon reasonable notice, provide Seller or its
representatives with access during normal business hours to, and the right to
make copies (at Seller’s expense) of all of the books and records concerning
the Property that relate to periods prior to the Closing Date.  Purchaser shall retain such books and records
for a minimum of three (3) years (seven (7) years for tax records) after the
Closing Date, and such obligation will survive Closing..

15.13       Waiver of Jury Trial.  SELLER AND PURCHASER HEREBY WAIVE ANY RIGHT
EITHER MAY HAVE TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM
(WHETHER ARISING IN TORT OR CONTRACT) BROUGHT BY EITHER PARTY AGAINST THE OTHER
ON ANY MATTER BASED ON THIS AGREEMENT, OR ARISING OUT OF, UNDER OR IN
CONNECTION WITH THIS AGREEMENT.

15.14       Recording.  Seller and Purchaser agree that neither of
them will record this Agreement, and that neither of them will record a short
form or memorandum of this Agreement (unless Purchaser is pursuing an action
for specific performance in good faith, in which case this prohibition shall
not apply).

15.15       No Joint Venture.  It is not intended by this Agreement to, and
nothing contained in this Agreement shall, create any partnership, joint
venture or other arrangement between Purchaser and Seller.  No term or provision of this Agreement is
intended to be, or shall be, for the benefit of any person, firm, organization
or corporation not a party hereto, and no such other person, firm, organization
or corporation shall have any right or cause of action hereunder.

15.16       Attorneys’ Fees.  In the event either party brings an action or
any other proceeding against the other party to enforce or interpret any of the
terms, covenants or conditions hereof, the party substantially prevailing in
any such action or proceeding shall be paid all costs and reasonable attorneys’
fees by the other party in such amounts as shall be set by the court at trial
and on appeal.

15.17       Counterparts; Facsimile.  This Agreement may be executed in multiple
counterparts, each of which shall constitute a duplicate original, but all of
which together shall constitute one and the same instrument. Executed copies of
this Agreement may be delivered by telecopy or other electronic means and, upon
receipt, shall be deemed originals and binding upon the parties hereto.  Without limiting or otherwise affecting the
validity of executed copies of this Agreement that have been delivered by
telecopy, the parties hereto will use best efforts to deliver originals as
promptly as possible after execution.

15.18       Audit Rights.  Purchaser has advised Seller that Purchaser
must cause to be prepared up to three (3) years of audited financial
statements in respect of the Property in compliance with the policies of
Purchaser and certain laws and regulations, including, without limitation,
Securities and Exchange Commission Regulation S-X. Seller agrees to use
reasonable 

 25
 

 

efforts to cooperate with Purchaser’s auditors in the
preparation of such audited financial statements (it being understood and
agreed that the foregoing covenant shall survive the Closing). Without limiting
the generality of the preceding sentence (i) Seller shall, during normal
business hours, allow Purchaser’s auditors reasonable access to such books and
records maintained by Seller (and Seller’s manager of the Property) in respect
of the Property as necessary to prepare such audited financial statements;
(ii) Seller shall use reasonable efforts (at no material cost to Seller)
to provide to Purchaser such financial information and supporting documentation
as are necessary for Purchaser’s auditors to prepare audited financial
statements; (iii) if Purchaser or its auditors require any information
that is in the possession of the party from which Seller purchased the
Property, Seller shall contact such prior owner of the Property and use
commercially reasonable efforts (at no material cost to Seller) to obtain from
such party the information requested by Purchaser; (iv) Seller will make
available for interview by Purchaser and Purchaser’s auditors the manager of
the Property or other agents or representatives of Seller responsible for the
day-to-day operation of the Property and the keeping of the books and records
in respect of the operation of the Property; and (v) if Seller has audited
financial statements with respect to the Property specifically (as opposed to
audited consolidated financials for Seller and its affiliates), Seller shall
promptly provide Purchaser’s auditors with a copy of such audited financial
statements for the Property specifically. If after the Closing Date Seller
obtains an audited financial statement in respect of the Property specifically
(as opposed to audited consolidated financials for Seller and its affiliates)
for a fiscal period prior to the Closing Date that was not completed as of the
Closing Date, then upon Purchaser’s written request Seller shall promptly
provide Purchaser with a copy of such audited financial statement, and the
foregoing covenant shall survive Closing. 
The provisions of this Section 15.18 shall survive the Closing.

15.19       Disclosure Rights.  Notwithstanding anything to the contrary
contained in this Agreement (i) either party may disclose such information
relating to the transaction that is the subject of this Agreement as such party
deems appropriate to its consultants, attorneys, accountants, prospective
investors and lenders, and others who need to know the information for the
purpose of assisting such party in connection with the transaction;
(ii) no covenant of confidentiality that may be set forth in this
Agreement or that either party may have otherwise agreed to shall be applicable
to any information published by the other party as public knowledge or
otherwise available in the public domain; (iii) each party shall be
permitted to disclose such information as may be recommended by Purchaser’s
legal counsel in order to comply with all financial reporting, securities laws
and other legal requirements applicable to Purchaser, including any required
disclosures to the Securities and Exchange Commission; and (iv) any duty
of confidentiality set forth in this Agreement shall terminate upon Closing.

15.20       Recovery Fund Notice.  A Real Estate Recovery Fund exists to
reimburse any person who has obtained a final civil judgment against a
Pennsylvania real estate licensee owing to fraud, misrepresentation, or deceit
in a real estate transaction and who has been unable to collect the judgment
after exhausting all legal and equitable remedies.  For complete details about the Fund, call
(717) 783-3658.

15.21       Bulk Sales.

(a)           Notice and Filing.  Seller acknowledges that the laws of the
Commonwealth of Pennsylvania may require that certain governmental agencies or

 26

 

authorities be notified in advance of the date of
Closing of the proposed sale of the Property by Seller to Purchaser, and in
certain cases that Seller may be required to obtain and deliver to Purchaser
one or more clearance certificates evidencing the payment by Seller of certain
taxes, assessments and contributions to the Commonwealth of Pennsylvania (the “Clearance Certificates”). 
Seller shall be responsible for providing all notices to governmental
agencies required under 72 P.S. § 1403, 72 P.S. §  7240, 43 P.S. § 788.3, 72 P.S. §  7321.1 and 69 P.S. § 529 (collectively, the “Bulk Sales Statutes”) and for
providing, at Closing, evidence reasonably acceptable to Purchaser that such
notices have been delivered.  Seller
agrees to act in good faith and with reasonable diligence to apply for, obtain
and deliver to Purchaser (with copies to the Title Company) all required
Clearance Certificates, showing no taxes, assessments or other charges due, at
or as soon after the Closing Date as is reasonably possible.

(b)           Bulk Sales Indemnity.  If any such required Clearance Certificate is
not available at Closing, Purchaser shall proceed with Closing; provided, that
Seller will then execute and deliver to Purchaser (through the Escrow with
Escrow Agent) a written indemnity, in the form attached hereto as Exhibit L
(the “Bulk Sales Indemnity”), which Bulk
Sales Indemnity shall automatically expire when, but only when, Seller delivers
such required Clearance Certificate(s) to Purchaser (with copies to the Title
Company) showing no taxes due.  Amstar
Group (as defined below) will guaranty Seller’s obligations under such Bulk
Sales Indemnity pursuant to Section 15.22.

(c)           Additional
Information.  If Clearance
Certificates are required after the Closing Date, the parties anticipate that
obtaining the applicable Clearance Certificate, as contemplated by this
Section 15.21, will require up to 180 days after the Closing Date (the “Outside Delivery Date”). 
If any Clearance Certificates are required after the Closing Date, and:

(i)            if all such Clearance Certificates
have not been delivered to Purchaser on or before the Outside Delivery Date,
then at any time after the Outside Delivery Date until the applicable Clearance
Certificates have been delivered to Purchaser, Purchaser may request
information regarding the status of Seller’s efforts to obtain the applicable
Clearance Certificates, and

(ii)           if all such Clearance Certificates
have not been delivered to Purchaser on or before the date that is 30 days
after the Outside Delivery Date, then at any time after such date until the
applicable Clearance Certificates have been delivered to Purchaser, Purchaser
may request in writing, and Seller shall deliver within five business days
after receipt of Purchaser’s written request, either, in Seller’s discretion,
(A) those prior tax returns and other filings of Seller relevant to the
determination of the amount and type of any such taxes owed by Seller pursuant
to Bulk Sales Statutes, or (B) an opinion of an independent accounting
firm acceptable to Purchaser (although Purchaser acknowledges that
PricewaterhouseCoopers will be acceptable to Purchaser), indicating the amount
and type of any such taxes owed by Seller pursuant to the Bulk Sales Statutes.

 27
 

 

(d)           Survival.  Seller’s obligations under this
Section 15.21 will survive Closing.

15.22       Guaranty of Amstar Group, LLC for
Certain Obligations.  The limited
partner of Seller, Amstar Group, LLC, a Colorado limited liability company (“Amstar Group”), hereby guarantees:

(a)           payment of those amounts payable by
Seller resulting from a breach of a representation or warranty under
Section 5 of this Agreement (subject, however, to the limitations as to
time and amounts set forth in Section 5.17);

(b)           payment of those amounts payable by
Seller resulting from Seller’s failure to pay any amounts due to Purchaser
pursuant to the terms of the Bulk Sales Indemnity described in
Section 15.21; and

(c)           performance
of Seller’ obligations pursuant to the terms of the Bulk Sales Indemnity.

Amstar’s Group’s obligations under this
Section 15.22 are subject to the terms and conditions of this Agreement
and, to the extent applicable, the Bulk Sales Indemnity and will survive the
Closing (but not termination) of this Agreement.  Amstar Group has executed this Agreement below
to evidence its agreement to the provisions of this Section 15.22.

[Remainder of page
intentionally left blank; signatures on following page]

 28
 

 

IN WITNESS WHEREOF, the parties have executed this Agreement on the
dates set forth below, but effective as of the date first set forth above.

	
  

  	
  PURCHASER:

  
	
   

  	
   

  
	
   

  	
  HARVARD PROPERTY TRUST, LLC,

  
	
   

  	
  a Delaware limited liability company,

  
	
   

  	
  doing business as

  
	
   

  	
  BEHRINGER HARVARD REAL ESTATE

  
	
   

  	
   

  
	
   

  	
   

  
	
  Date: September
  20, 2006

  	
  By:

  	
  /s/ Jon L. Dooley

  	
   

  
	
   

  	
  Name:

  	
  Jon L. Dooley

  	
   

  
	
   

  	
  Title:

  	
  Executive Vice President

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SELLER:

  
	
   

  	
   

  
	
   

  	
  AGL INVESTMENTS NO.2 LIMITED 

  PARTNERSHIP L.L.L.P.,

  
	
   

  	
  a Colorado limited liability limited partnership

  
	
   

  	
   

  
	
   

  	
  By:

  	
  APL General, LLC, a Colorado limited 

  liability company, its General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Amstar Partners, Inc., a Colorado 

  corporation, its Managing Member

  
	
   

  	
   

  	
   

  	
   

  
	
  Date: September
  20, 2006

  	
   

  	
   

  	
  By:

  	
    /s/ Gabe L. Finke

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Gabe L. Finke

  
	
   

  	
   

  	
   

  	
   

  	
  President

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TITLE COMPANY:

  
	
   

  	
   

  
	
   

  	
  LandAmerica Partners Title Company

  
	
   

  	
   

  
	
   

  	
   

  
	
  Date:

  	
   

  	
  , 2004

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
														

 

 29
 

 

The undersigned has
executed this Agreement to evidence its agreement to its post-Closing
obligations under Section 15.22 and for no other purpose.

	
  

  	
  AMSTAR GROUP, LLC:

  
	
   

  	
   

  
	
   

  	
  AMSTAR GROUP, LLC,

  
	
   

  	
  a Colorado limited liability company

  
	
   

  	
   

  
	
   

  	
   

  
	
  Date: September
  20, 2006

  	
  By:

  	
    /s/ Gabe L. Finke

  
	
   

  	
   

  	
  Gabe L. Finke 

  Manager

  

 

 30Exhibit 10.168

SALE,
PURCHASE AND ESCROW AGREEMENT

This Sale, Purchase and Escrow Agreement (this “Agreement”),
dated as of September 29, 2006,
is made by and between NORTH ATLANTA REALTY ACQUISITION COMPANY, INC., a
Delaware corporation (“Seller”), and HARVARD PROPERTY TRUST, LLC, a Delaware limited liability company
(“Buyer”), and constitutes (i) a contract of sale and purchase
between the parties and (ii) an escrow agreement between Seller,
Buyer and PARTNERS TITLE COMPANY (“Escrow Agent”), the consent of which appears
at the end hereof.

ARTICLE I

RECITALS

1.1           Real Property.  Seller is the lessee of that certain land
(the “Land”) described in Parcel A on Exhibit A and all improvements
located thereon (the “Improvements”) known as Resurgens Plaza located at 945
East Paces Ferry Road, Atlanta, Georgia (collectively, the “Real Property”),
pursuant to that certain Lease for Johnsontown South Site, dated May 29, 1984
and recorded in Deed Book 8994, page 396, Fulton County, Georgia records,
between Metropolitan Atlanta Rapid Transit Authority, a public body corporate
created under the laws of the State of Georgia (“MARTA”), and Resurgens Plaza
South, Inc., a Georgia corporation (predecessor-in-interest to Resurgens Plaza
South Associates, L.P. (“RPSA”)), as amended by that certain First Amendment to
Lease for Johnsontown South Site, dated May 29, 1984, recorded in Deed Book
8994, page 448, aforesaid records, as further amended by that certain Second
Amendment to Lease for Johnsontown South Site, dated July 1, 1984, recorded in
Deed Book 9392, page 398, aforesaid records, as further amended by that certain
Third Amendment to Lease for Johnsontown South Site, dated February 19, 1986,
recorded in Deed Book 9971, page 106, aforesaid records, as further amended by
that certain Fourth Amendment to Lease for Johnsontown South Site and Second
Amendment to Development Agreement, dated August 1, 1986, recorded in Deed Book
10277, page 168, aforesaid records, as assigned by RPSA to Seller pursuant to
that certain Assignment and Assumption of MARTA Lease and Development
Agreement, dated November 17, 1997 and recorded in Deed Book 23466, page 251
(collectively, the “Ground Lease”).

1.2           Air Rights.  Seller owns and holds fee title to those
certain air rights described in Parcel B on Exhibit A (the “Air Rights
Parcel”).

1.3           Development Agreement.  Seller holds certain development rights
pursuant to that certain Development Agreement, dated November 10, 1982 and
recorded in Deed Book 8287, page 1, Fulton County, Georgia records, between
MARTA and Resurgens Plaza Company, a Georgia general partnership
(predecessor-in-interest to RPSA), as amended by that certain First Amendment
to Development Agreement, dated September 30, 1983 and unrecorded, as further
amended by that certain Fourth Amendment to Lease for Johnsontown South Site
and Second Amendment to Development Agreement, dated August 1, 1986, recorded
in Deed Book 10277, page 168, aforesaid records, as assigned by RPSA to Seller
pursuant to that certain Assignment 

 

and Assumption of MARTA Lease and Development
Agreement, dated November 17, 1997 and recorded in Deed Book 23466, page 251
(collectively, the “Development Agreement”).

1.4           Personal Property.  In connection with the Real Property, Seller
has (i) obtained certain governmental permits and approvals, (ii) obtained
certain contractual rights and other intangible assets, and (iii) acquired
certain other items of tangible personal property more completely described in Exhibit
B (collectively, the “Personal Property”). 
The Real Property, the Air Rights Parcel and the Personal Property are
collectively referred to as the “Property.”

1.5           Purchase and Sale.  Seller now desires to sell and Buyer now
desires to purchase all of Seller’s right, title and interest in and to the
Property, upon the terms and covenants and subject to the conditions set forth
below.

ARTICLE II

PURCHASE PRICE

2.1           Price.  In consideration of the covenants herein
contained, Seller hereby agrees to sell and Buyer hereby agrees to purchase the
Property for a total purchase price of $110,500,000 (the “Purchase Price”).  Notwithstanding the foregoing, if RSUI Indemnity Company, Inc. (“RSUI”)
exercises its expansion option with respect to the Expansion Option Space (as
defined in the RSUI Lease (as defined herein)) under the RSUI Lease, the
Purchase Price shall be increased by an amount equal to the product of (i)
the quotient obtained by dividing (x) the number of rentable square feet
of Expansion Option Space to be leased by RSUI pursuant to the exercise of such
option by (y) 24,577 and (ii) $250,000.  The Purchase Price shall be paid by Buyer as
follows:

2.1.1        Deposit.  Buyer shall, within two business days of the
date hereof, deliver to Escrow Agent by bank wire of immediately available
funds the sum of $2,000,000
(the “Deposit”) to insure the full and faithful performance by Buyer of
the terms of this Agreement.

2.1.2        Within
two business days after the expiration of the Investigation Period (as defined
in Section 5.3.2), Buyer shall deliver to Escrow Agent, by bank wire transfer
of immediately available funds, an additional $3,000,000 (the “Additional Funds”, such money to become part of the
Deposit, for an aggregate Deposit of $5,000,000),
unless Buyer shall have terminated this Agreement in accordance with Section
5.3. If Buyer fails to deliver the Additional Funds to Escrow Agent within
two business days after the expiration of the Investigation Period (provided Buyer has not terminated this
Agreement in accordance with Section 5.3), such failure shall be a default
under this Agreement.

2.1.3        Balance
of Purchase Price.  Buyer shall, on
or before one business day prior to the Closing (as defined in Section 6.1),
deliver to Escrow 

 2
 

 

Agent, by bank wire transfer of immediately available funds, a sum
equal to the balance of the Purchase Price. 
The balance of the Purchase Price received by Seller at Closing shall be
adjusted to reflect any credit of interest to Buyer under Section 2.3 and
prorations and other adjustments pursuant to Section 7.1.

2.2           Investments.  Following the collection of the Deposit,
Escrow Agent shall, at the direction of Buyer, invest the Deposit in:

(i)            obligations
of the United States government, its agencies or independent departments;

(ii)           certificates of
deposit or money market funds issued by a banking institution acceptable to
Buyer; or

(iii)          an interest-bearing account of a banking
institution acceptable to Buyer.

No investment of the
Deposit shall have a maturity date beyond the Closing Date (as defined in
Section 6.1).

2.3           Interest on the Deposit.  Any interest earned on the Deposit shall be
credited and delivered to the party receiving the Deposit, except however, if
the transaction closes, at Closing any interest earned on the Deposit prior to
its delivery to Seller shall be credited to Buyer.

ARTICLE III

CONDITIONS TO THE PARTIES’ OBLIGATIONS

3.1           Conditions to Buyer’s Obligation
to Purchase.  Buyer’s obligation to
purchase is expressly conditioned upon each of the following:

3.1.1        Performance
by Seller.  Performance in all
material respects of the obligations and covenants of, and deliveries required
of, Seller hereunder.

3.1.2        Delivery
of Title and Possession.  Delivery at
the Closing of (i) the Deed (as defined in Section 4.2.1), (ii) the
Assignment of Ground Lease and Development Agreement (as defined in Section
4.1.4) and (iii) possession as provided in Section 15.1.

3.1.3        Title
Insurance.  Delivery at the Closing
of a standard 1992 form of American Land Title Association owner’s policy of
title insurance, including extended coverage (or a signed marked binder
thereof) (the “Title Policy”) with liability in the amount of the Purchase
Price issued by Commonwealth Land Title Insurance Company (the “Title Company”),
insuring that fee title to the Air Rights Parcel and leasehold title to the
Real Property vests in Buyer subject to the Permitted Encumbrances (as defined
in Section 4.2.1). At 

 3
 

 

its option, Buyer may direct the Title Company to issue additional
title insurance endorsements, if Buyer pays for the extra cost of such
additional endorsements, provided that the Title Company’s failure to issue any
such additional endorsements shall not affect Buyer’s obligations under this
Agreement.

3.1.4        Tenant
Estoppels.  Receipt by Buyer
of estoppel certificates, dated not earlier than 30 days prior to the Closing
Date, from (i) RSUI, (ii) Fisher & Phillips, (iii) Epstein,
Becker & Green, (iv) Spencer Stuart and (v) Milliman USA (collectively,
the “Major Tenants”) and from enough of the remaining tenants under the Leases
so that the estoppel certificates received by Buyer cover in the aggregate at
least 80% of the net leased square footage of the Improvements.  Such estoppel certificates are to be in the
form of Exhibit C or such other form as is specified in the applicable
Lease, without any material changes, exceptions or qualifications, provided
that any estoppel certificate shall be accepted as long as it (i) does
not indicate the continuing existence of an actual material default of Seller
as landlord under the applicable Lease (ii) confirms the rent and any
other monthly payments under the applicable Lease, and (iii) does
not indicate any conflict with or contains information contradictory to the
terms and conditions of the applicable Lease (other than minor technical or de
minimis conflicts or contradictions). 
Seller shall have the option to provide its own estoppel certificate for
tenants (other than the Major Tenants) leasing in the aggregate not more than 15% of the net leased area of the
Improvements in lieu of any tenant estoppel certificates which Seller fails to
obtain, and provided such estoppel(s) meet the requirements of the following
sentence, delivery thereof shall count towards satisfaction of  the condition set forth in this Section
3.1.4.  The Seller estoppel certificates
shall state that (i) Seller has not received any written notice of its default
as landlord under any such lease, (ii) to the extent of Seller’s actual
knowledge, Seller is not in material default as landlord under any such lease,
(iii) to the extent of Seller’s actual knowledge, such tenants are not
in material default under such leases, and (iv) to the extent of Seller’s
actual knowledge, Seller has not been informed by any such tenant that the rent
set forth in the applicable estoppel certificate delivered to such tenant is in
dispute.  Seller’s liability under each
Seller’s estoppel certificate shall cease and terminate with respect to any
such lease upon the delivery to Buyer, at any time after the Closing, of a
corresponding estoppel certificate from such tenant meeting the criteria set
forth in this Section 3.1.4.  In
addition, Seller’s estoppel certificates shall contain the limitations
on survival and liability set forth in Section 16.8 of this Agreement.

3.1.5        MARTA
Estoppel.  Receipt by Buyer of an
executed estoppel certificate reasonably acceptable to Buyer from MARTA under
the Ground Lease and the Development Agreement, provided that any such
estoppel certificate shall be accepted as long as it does not indicate the
continuing existence of an actual material default of Seller as landlord under
the Ground Lease and the Development Agreement.

 4
 

 

3.1.6        Consent
of MARTA.  Receipt by Buyer of the
consent of MARTA to the assignment from Seller to Buyer of the Ground Lease and
the Development Agreement.

3.1.7        Defeasance.  The loan (the “Loan”) evidenced by that
certain Fee and Leasehold Deed to Secure Debt, Assignment of Leases and Rents
and Security Agreement, dated as of December 29, 1997, made by Seller to
General Electric Capital Corporation shall have been defeased.

3.1.8        Seller’s
Representations.  The representations
and warranties by Seller set forth in Section 11.1 being true and correct in
all material respects as of the Closing except as modified by notice (in
accordance with Section 11.1) to which Buyer does not object in writing within
three business days after receipt thereof.

3.2           Conditions to Seller’s Obligation
to Sell.  Seller’s obligation to sell
is expressly conditioned upon each of the following:

3.2.1        Performance
by Buyer.  Performance in all material
respects of the obligations and covenants of, and deliveries required of, Buyer
hereunder.

3.2.2        Receipt
of Purchase Price.  Receipt of the
Purchase Price and any adjustments due Seller under Article VII at the Closing
in the manner herein provided (including delivering the Purchase Price to
Escrow Agent one business day prior to the Closing Date in accordance with
Section 6.1).

3.2.3        Consent
of MARTA.  Receipt by Seller of the
consent of MARTA to the assignment from Seller to Buyer of the Ground Lease and
the Development Agreement.

3.2.4        Defeasance.  The Loan shall have been defeased.

3.3           Failure of Condition Precedent.  Upon the failure of any of the foregoing conditions, the party to which
such failed condition was to benefit shall have the option to (i) waive
such condition precedent and proceed to Closing or (ii) terminate this
Agreement by sending written notice to the other party on or before the date of
Closing, in which event the Deposit shall be returned to Buyer (except if Buyer
fails to deliver to Seller the Purchase Price as set forth in Section 3.2.2).

ARTICLE IV

BUYER’S DELIVERIES AND SELLER’S DELIVERIES TO ESCROW AGENT

4.1           Buyer’s Deliveries.  Buyer shall, at or before the Closing,
deliver to Escrow Agent each of the following:

 5
 

 

4.1.1        Purchase
Price.  The Purchase Price as set
forth in Article II.

4.1.2        Assignment
of Leases and Contracts.  Four
executed counterparts of the Assignment and Assumption of Leases, Contracts and
Other Property Interests (the “Assignment of Leases and Contracts”) in the form
of Exhibit D.

4.1.3        Bill
of Sale.  Four executed counterparts
of a bill of sale (the “Bill of Sale”) in the form of Exhibit E.

4.1.4        Assignment
of Ground Lease and Development Agreement. 
Four executed counterparts of the Assignment and Assumption of Ground
Lease and Development Agreement (the “Assignment of Ground Lease and
Development Agreement”) in substantially the form of Exhibit F.

4.1.5        Transfer
Declarations. Executed copies of state, county and local transfer
declarations, if any.

4.1.6        Closing
Statement.  An executed settlement
statement reflecting the prorations and adjustments required under Article VII.

4.2           Seller’s Deliveries.  Seller shall, at or before the Closing,
deliver to Escrow Agent each of the following:

4.2.1        Deed.  A limited warranty deed (the “Deed”) in the
form of Exhibit G with respect to the Air Rights Parcel, executed and
acknowledged by Seller, pursuant to which Seller shall convey title to the Air
Rights Parcel subject to the following (collectively, the “Permitted Encumbrances”):

(1)           Non-delinquent
real property taxes and all assessments and unpaid installments thereof which
are not delinquent.

(2)           The
leases affecting the Property enumerated in Exhibit H and any leases
executed in accordance with this Agreement after the date hereof (collectively,
the “Leases”), and the rights of the tenants thereunder.

(3)           The
Ground Lease and the Development Agreement.

(4)           Any
other lien, encumbrance, easement or other exception or matter voluntarily
imposed or consented to by Buyer prior to or as of the Closing.

(5)           All
exceptions to title contained or disclosed in the Title Report (as defined in
Section 5.1.1) other than Title 

 6
 

 

Objections (as defined in Section 5.3.1) identified and not thereafter
waived by Buyer.

4.2.2        Assignment
of Leases and Contracts.  Four
executed counterparts of the Assignment of Leases and Contracts, together with
original executed counterparts (or copies if originals are not in Seller’s
possession) of the Leases and the service contracts, equipment leases,
maintenance agreements and other contracts affecting the Real Property
enumerated in Exhibit I (the “Contracts”) assigned thereby.

4.2.3        Bill
of Sale.  Four executed counterparts
of the Bill of Sale.

4.2.4        Assignment
of Ground Lease and Development Agreement. 
Four executed counterparts of the Assignment of Ground Lease and
Development Agreement.

4.2.5        Notices
to Tenants.  Notices signed by Seller
(or Seller’s manager for the Improvements) addressed to each tenant under each
Lease in the form of Exhibit J.

4.2.6        FIRPTA
Certificate.  Executed copies of a
certificate in the form of Exhibit K, with respect to the Foreign
Investment in Real Property Tax Act.

4.2.7        Transfer
Declarations. Executed copies of state, county and local transfer
declarations, if any.

4.2.8        Termination
of Management and Leasing Agreements. 
Evidence of termination of that certain Management and Leasing
Agreement, dated December 1997, between Seller and Insignia Commercial Group,
Inc., a Georgia corporation (predecessor-in-interest to CB Richard Ellis) (the “Termination
Agreement”).

4.2.9        Broker’s
Lien Waiver.  A lien waiver from the
Broker (as defined in Section 11.1.1) in form sufficient for the Title Company
to delete any exceptions for the rights of the Broker.

4.2.10      Closing
Statement.  An executed settlement
statement reflecting the prorations and adjustments required under Article VII.

4.2.11      Rent
Roll.  A current rent roll for the
Property.

4.3           Failure to Deliver.  The failure of Buyer or Seller to make any
delivery required above by and in accordance with this Article IV shall
constitute a default hereunder by such party.

 7
 

 

ARTICLE V

INVESTIGATION OF
PROPERTY

5.1           Delivery of Documents.  Except with respect to Section 5.1.1 (which
Buyer shall have ordered on or prior to the date hereof), Seller shall deliver,
cause to be delivered, or make available to Buyer the following within five
business days after the date of this Agreement:

5.1.1        Preliminary
Title Report.  A current preliminary
title report covering the Real Property and the Air Rights Parcel issued by the
Title Company, together with copies of all documents referred to as exceptions
therein (collectively, the “Title Report”).

5.1.2        Survey.  To the extent in Seller’s possession, the
most recent survey of the Real Property and the Air Rights Parcel prepared by a
licensed surveyor (the “Survey”).

5.1.3        Ground
Lease, Development Agreement, Leases and Contracts.  Copies of the Ground Lease, the Development
Agreement, the Leases and the Contracts.

5.1.4        Books
and Records.  Copies of the managing
agent’s books and records, monthly operating statements and variance reports,
tax bills and utility bills regarding the Property for the 2004 and 2005
calendar years and 2006 year to date, it being acknowledged that the foregoing
shall not include any financial analyses, budgets, projections, appraisals, or
confidential materials.

5.1.5        Permits.  Copies of all governmental permits,
certificates of occupancy and approvals, in each case regarding the Property,
which are in Seller’s possession.

If requested by Seller,
Buyer shall provide written verification of its receipt of those items listed
in this Section 5.1 which are delivered to Buyer.  Seller acknowledges that attached hereto as Exhibit
L is Buyer’s standard
due diligence item list for purchase and sale contracts.

5.2           Physical Inspection of the Real
Property.  Prior to the expiration of
the Investigation Period, Buyer and Buyer’s representatives, agents and
designees shall have the right at reasonable times and upon reasonable notice
to Seller to enter upon the Real Property, at Buyer’s sole cost, solely for the
purpose of conducting such non-destructive physical inspections, non-destructive
soil and engineering tests and a non-destructive Phase I environmental site
assessment as Buyer may elect to make or obtain, provided that Buyer
promptly repairs any damage to the reasonable satisfaction of Seller.  Buyer acknowledges and agrees that the
inspection, testing and survey of the Real Property by Buyer and Buyer’s
representatives, agents and designees shall be subject to the rights of the
tenants under the Leases and shall be performed in such a manner as to not
interfere 

 8
 

 

with the rights of such tenants.  Buyer shall give Seller reasonable prior
written notice of any inspection, test or survey so that Seller will have the
opportunity to have a representative present therefor, which right Seller
reserves.

5.2.1        No
Communication with Tenants.  Neither
Buyer nor Buyer’s representatives, agents and designees shall communicate with
any tenants without the prior written approval of Seller, which consent shall
not be unreasonably withheld, conditioned, or delayed.  Seller reserves the right to be present at
any meeting with any tenant.

5.2.2        Indemnity
and Insurance.  Buyer hereby agrees
to indemnify and hold harmless Seller, J.P. Morgan Investment Management Inc. (“Advisor”)
and the pension fund or other investors on whose behalf Seller is acting, and
their respective shareholders, officers, directors, partners, members,
employees, agents, successors and assigns, from and against any mechanics’ lien
or claim therefor, any claim, cause of action, lawsuit, damage, liability,
loss, cost or expense (including, without limitation, attorneys’ fees) arising
out of any such entry by Buyer or its representatives, agents or designees
(including any such entry made prior to the date of this Agreement) or out of
any such inspections, tests or surveys conducted by Buyer, its representatives,
agents or designees (including any such inspections, tests or surveys made prior
to the date of this Agreement).  Prior to any entry upon the Real Property by
Buyer or Buyer’s agents, contractors, subcontractors or employees, Buyer shall
deliver to Seller an original endorsement to Buyer’s commercial general
liability insurance policy which evidences that Buyer is carrying a commercial
general liability insurance policy with a financially responsible insurance
company acceptable to Seller, covering (i) the activities of Buyer, and Buyer’s
agents, contractors, subcontractors and employees on or upon the Real Property,
and (ii) Buyer’s indemnity obligation above. 
Such endorsement to such insurance policy shall evidence that such
insurance policy shall have a per occurrence limit of at least $2,000,000 and
an aggregate limit of at least $3,000,000, shall name Seller as an additional
insured, shall be primary and non-contributing with any other insurance
available to Seller and shall contain a full waiver of subrogation clause.  The provisions of the preceding three
sentences shall survive the termination of this Agreement or the Closing
hereunder.

5.3           Investigation Period.  Buyer shall have the right to make the
following investigations.

5.3.1        Title
and Survey.  Buyer shall have until October 5, 2006 at
4:00 p.m. New York City Time to notify Seller of any objections (the “Title
Objections”) with respect to the Title Report and the Survey based on its
review thereof.  If Buyer does not give
such notice, such failure shall be conclusively deemed to be full and complete
approval of the Title Report and the Survey and any matter disclosed
therein.  If Buyer does give such notice,
Seller shall have three business days after receipt thereof to notify Buyer
that Seller (a) will cause or (b) elects not to cause any or all Title
Objections to be removed or insured over 

 9
 

 

by the Title Company.  Seller’s
failure to notify Buyer within such three business day period as to any Title
Objection shall be deemed an election by Seller not to remove or have the Title
Company insure over such Title Objection. 
If Seller notifies or is deemed to have notified Buyer that Seller shall
not remove nor have the Title Company insure over any or all of the Title
Objections, Buyer shall have until the end of the Investigation Period to (i)
terminate this Agreement or (ii) waive such Title Objections and proceed to
closing without any abatement or reduction in the Purchase Price on account of
such Title Objections.  If Buyer does not
give such notice, Buyer shall be deemed to have elected to waive such Title
Objections.

5.3.2        General
Investigation.  In addition, Buyer
shall have from the date hereof until October 16, 2006 at 4:00 p.m. New
York City Time (the “Investigation Period”) to notify Seller that as a result
of Buyer’s review of the documents set forth in Section 5.1 (other than the
Title Report or the Survey which are covered in Section 5.3.1 above) or Buyer’s
investigation of the Property pursuant to Section 5.2 it disapproves of any
matter or item affecting the Property (which disapproval may be in Buyer’s sole
discretion) and has elected to terminate this Agreement.  If Buyer fails to give such notice of
disapproval and termination prior to the expiration of the Investigation
Period, such failure shall be conclusively deemed to be a waiver of Buyer’s
right to terminate this Agreement under this Section 5.3.2.

5.4           Effect of Termination.  If Buyer terminates this Agreement in
accordance with Section 5.3, all further rights and obligations of the parties
shall cease and terminate without any further liability of either party to the
other (except those obligations which are specifically provided to survive such
termination as provided in this Agreement).

5.5           No Obligation to Cure.  Except for Mandatory Cure Objections (all
of which Seller shall cure), nothing contained in this Agreement or otherwise
shall require Seller to render its title marketable or to remove or correct any
exception or matter disapproved by Buyer or to spend any money or incur any
expense in order to do so.  “Mandatory Cure Objections” shall be defined
as any deeds of trust, mortgages judgments, mechanic’s or materialmen’s liens
or other liens or encumbrances which secure or evidence a monetary claim,
which, in each case was created by Seller or caused to be created by
Seller.  Seller reserves all rights against the
persons or entities responsible for any lien or encumbrance that is a Mandatory
Cure Objection.  The previous sentence
shall survive the Closing

5.6           Copies of Third Party Reports.  If the Investigation Period is extended for
any reason, including by amendment to this Agreement, or if Seller otherwise
requests, Buyer, within three days after such extension or request, shall
provide Seller with copies of all third party reports and work product
generated with respect to the Property.

 10

 

ARTICLE VI

THE CLOSING

6.1           Date and Manner
of Closing.  Escrow Agent shall close
the escrow (the “Closing”) as soon as all conditions to closing contained in
this Agreement have been satisfied which shall in any event be not later than December 1, 2006 (the “Closing Date”),
time being of the essence (subject only to Seller’s extension option under
Section 6.2 and Seller’s cure rights under Section 13.6, in which event Seller
will give Buyer not less than three business days’ notice of the date of
Closing), by recording and delivering all documents and funds as set forth in
Article VIII.  Notwithstanding anything
to the contrary contained in this Agreement, Buyer shall deliver the Purchase
Price to Escrow Agent one business day prior to the Closing in order to defease
the Loan at Closing.

6.2           Seller’s
Extension Option.  Notwithstanding the satisfaction of all other
conditions precedent contained in this Agreement, Seller may elect to postpone
the Closing for up to 42 days (but in no event to a date later than January 12,
2007) solely for the purpose of satisfying the condition precedent contained in
Section 3.1.7, provided that Seller shall give Buyer not less than three
business days’ notice of Seller’s election to exercise this option.  Time is of the essence for all of the dates
contained in this Section 6.2.

6.3           Delay in Closing;
Authority to Close.  If Escrow Agent
cannot close the escrow on or before the Closing Date, it shall, nevertheless,
close the same when all conditions have been satisfied or waived,
notwithstanding that one or more of such conditions has not been timely
performed, unless after the Closing Date and prior to the close of the escrow,
Escrow Agent receives a written notice to terminate the escrow and this
Agreement from a party who, at the time such notice is delivered, is not in
default hereunder.  The exercise of such
right of termination, any delay in the exercise of such right, and the return
of monies and documents, shall not affect the right of the party giving such
notice of termination to pursue remedies permitted under Article X for the
other party’s breach of this Agreement. 
In addition, the giving of such notice, the failure to object to
termination of the escrow or the return of monies and documents shall not
affect the right of the other party to pursue other remedies permitted under
Article X for the breach of the party who gives such notice.

ARTICLE VII

PRORATION, FEES, COSTS AND ADJUSTMENTS

7.1           Prorations.  Prior to the Closing, Seller shall determine
the amounts of the prorations in accordance with this Agreement and notify
Buyer thereof.  Buyer shall review and
approve such determination promptly and prior to the Closing, such approval not
to be unreasonably withheld or delayed. 
Thereafter, Buyer and Seller shall each inform Escrow Agent of such
amounts.

 11
 

 

7.1.1        Certain Items Prorated.  In accordance with the notifications, Escrow
Agent shall prorate between the parties (and the parties shall deposit funds
therefor with Escrow Agent or shall instruct Escrow Agent to debit against sums
held by Escrow Agent owing to such party), as of 11:59 p.m. the day prior to
the Closing, all income and expenses with respect to the Property and payable
to or by the owner of the Property, including, without limitation:  (i) all real property taxes on the basis of the
fiscal period for which assessed (if the Closing shall occur before the tax
rate is fixed, the apportionment of taxes shall be based on the tax rate for
the preceding period applied to the latest assessed valuation); (ii) rents,
other tenant payments and tenant reimbursements (collectively, “Tenant Payments”)
if any, received under the Leases; (iii) rents and other payments
payable under the Ground Lease and the Development Agreement; (iv)
charges for water, sewer, electricity, gas, fuel and other utility charges, all
of which shall be read promptly before Closing; (v) the cost, based
on the invoices of Seller’s suppliers, of all building supplies (but not
building materials) all in unopened containers, in accordance with an inventory
to be made by Seller as of a date not more than ten days preceding the Closing;
(vi) amounts prepaid and amounts accrued but unpaid on service
contracts and management contracts which are to be assumed by Buyer; and (vii) periodic
fees for licenses, permits or other authorizations with respect to the
Property.

7.1.2        Leasing Commissions and Tenant
Improvements.  At the Closing Buyer
shall pay to Seller (if then due), reimburse Seller for (if already paid), and
assume from Seller the obligation to pay (if due in the future) all leasing
commissions, tenant improvement costs and other charges payable by reason of or
in connection with any Lease (i) entered into with Buyer’s approval
after the date hereof and (ii) any renewal, expansion (including any
expansion options contained in an existing Lease) or extension of an existing
Lease after the Closing.  At the Closing, Seller shall credit Buyer the
sum of $2,740,776 against the Purchase Price, which sum equals the tenant
improvement allowance to which RSUI is entitled under that certain Office Lease
Agreement, dated as of September 9, 1988, by and between Seller’s
predecessor-in-interest and RSUI’s predecessor-in-interest (as the same has
been amended and assigned, the “RSUI Lease”).  Upon the granting of such credit to Buyer at
the Closing, Seller shall be released of any obligation to pay such tenant
improvement allowance to RSUI and Buyer shall indemnify and hold Seller
harmless against any claim by RSUI for such tenant improvement allowance
(including attorneys’ fees).  Buyer shall
be liable for the payment of any leasing commission owed to a third-party
broker and any tenant improvement allowance owed to RSUI, as the case may be,
if RSUI exercises the Expansion Option (as defined in the RSUI Lease), and Buyer
shall indemnify and hold Seller harmless against any claim by RSUI or any
third-party broker for any such leasing commission or tenant improvement
allowance (including attorneys’ fees). This Section 7.1.2 shall survive the
Closing.

7.1.3        Taxes.  Real property tax refunds and credits received after the Closing which
are attributable to a fiscal tax year prior to the Closing shall belong to
Seller.  Any such refunds and credits
attributable to the fiscal tax year 

 12
 

 

during which the Closing occurs shall be apportioned
between Seller and Buyer after deducting the reasonable out-of-pocket expenses
of collection thereof.  This
apportionment obligation shall survive the Closing.

7.1.4        Security and Other Deposits.  At the Closing, Seller shall deliver to Buyer
all unapplied refundable security deposits (plus interest accrued thereon to
the extent required to be paid by the applicable Lease or applicable law)
required to be held by Seller under the Leases and Buyer shall pay Seller an
amount equal to all utility and contract deposits then held by third parties
with respect to the Property.  Any such
security deposits in form other than cash (including letters of credit or
security interests in security deposit escrows) shall be transferred to Buyer
by way of appropriate instrument of transfer or assignment.

7.1.5         Delinquent Rentals; Other Tenant
Payments.  Delinquent Tenant
Payments, if any, shall not be prorated and all rights thereto shall be
retained by Seller, who reserves the right to collect and retain such delinquent
Tenant Payments, and Buyer agrees to cooperate with Seller in Seller’s efforts
to collect such Tenant Payments, including, if necessary, joining in any legal
action instituted by Seller.  If at any
time after the Closing, Buyer shall receive any such delinquent Tenant Payments
(all of which Buyer shall use its best efforts to obtain), Buyer shall
immediately remit such Tenant Payments to Seller, provided that any monies
received by Buyer from a delinquent tenant shall be applied first to current rents
then due and payable and then to delinquent rents in the inverse order in which
they became due and payable.  The
previous sentence shall survive the Closing. 
If the Tenant Payments required to be made by any tenants include
percentage rent, additional rent or escalation charges or reimbursements for
real property taxes, operating expenses or other charges, Seller and Buyer
shall at the Closing reasonably estimate the unpaid amount thereof attributable
to any period prior to the Closing and Buyer shall pay such amount to Seller at
the Closing.

7.1.6        True-Up.  Any prorations or adjustments of revenue or
expenses which cannot be ascertained with certainty as of the Closing
(including, without limitation, real estate taxes relating to the Property)
shall be prorated on the basis of the parties’ reasonable estimate of such
amounts and shall be re-prorated once the final amounts are determined.  Until the date that is 180 days from the
Closing, Seller and Buyer agree to cooperate in good faith to determine if and
to what extent any prorations proved to be incorrect.  If any of the prorations or adjustments made
pursuant to this Section 7.1 shall prove incorrect for any reason, the party in
whose favor the error was made will promptly pay to the other party the amount
necessary to correct such error.  Seller
and Buyer shall each be deemed to have waived any right to seek such
readjustment of the prorations if it has not sent written notice to the other
party prior to the date that is 180 days after the Closing of a dispute that
has not been resolved.  The provisions of
this Section 7.1.6 shall survive the Closing.

 13
 

 

7.2           Seller’s Closing
Costs.  Seller shall pay (i)
the Georgia state transfer tax in the amount Escrow Agent determines to be
required by law, (ii) one-half of Escrow Agent’s escrow fee or
escrow termination charge, (iii) Seller’s own attorneys’ fees and (iv)
one-half of the actual, documented fee charged by Buyer’s third-party lender to
extend Buyer’s interest rate lock period with such lender for an additional 45
days (the “Extension Fee”), which amount payable by Seller shall not exceed
$10,000; Buyer shall provide Seller with written evidence of the amount of the
Extension Fee.

7.3           Buyer’s Closing
Costs.  Buyer shall pay (i) one-half
of Escrow Agent’s escrow fee or escrow termination charge, (ii) the cost
of the Title Report, the title premium for the Title Policy and the cost of any
title insurance endorsements ordered by Buyer, (iii) the cost of
any update to the Survey or any new survey of the Property, (iv) taxes
and any other costs incurred in recording the Deed or any other instruments, (v) any
costs incurred in connection with Buyer’s investigation of the Real Property
pursuant to Article V, (vi) Buyer’s own attorneys’ fees and (vii)
the portion of the Extension Fee not payable by Seller pursuant to Section
7.2(iv).

ARTICLE VIII

DISTRIBUTION OF FUNDS AND DOCUMENTS

8.1           Delivery of the
Purchase Price.  At the Closing,
Escrow Agent shall deliver the Purchase Price to Seller, and the transaction
shall not be considered closed until such delivery occurs.

8.2           Other Monetary
Disbursements.  Escrow Agent shall,
at the Closing, hold for personal pickup or arrange for wire transfer, (i) to
Seller, or order, as instructed by Seller, all sums and any proration or other
credits to which Seller is entitled and less any appropriate proration or other
charges and (ii) to Buyer, or order, any excess funds theretofore
delivered to Escrow Agent by Buyer and all sums and any proration or other
credits to which Buyer is entitled and less any appropriate proration or other
charges.

8.3           Recorded
Documents.  Escrow Agent shall cause
the Deed, the Assignment of Ground Lease and Development Agreement and any
other documents that Seller or Buyer desires to record to be recorded with the
appropriate county recorder and, after recording, returned to the grantee,
beneficiary or person acquiring rights under said document or for whose benefit
said document was acquired.

8.4           Documents to
Buyer.  Escrow Agent shall at the
Closing deliver by overnight express delivery to Buyer the following:

(1)                                  one
conformed copy of the Deed;

(2)                                  one
original of the Assignment of Ground Lease and Development Agreement;

(3)                                  two
originals of the Assignment of Leases and Contracts;

(4)                                  two
originals of the Bill of Sale;

(5)                                  originals
of the tenant estoppels;

 14
 

 

(6)                                  two
originals of the Notice to Tenants;

(7)                                  two
originals of the FIRPTA Affidavit;

(8)                                  one
conformed copy of any Transfer Declarations;

(9)                                  one
copy of the Broker’s lien waiver;

(10)                            one
original of the Termination Agreement;

(11)                            one
original of the Closing Statement; and

(12)                            one
original of the Title Policy.

8.5           Documents to
Seller.  Escrow Agent shall at the
Closing deliver by overnight express delivery to Seller, the following:

(1)                                  one
conformed copy of the Deed;

(2)                                  two
originals of the Assignment of Ground Lease and Development Agreement;

(3)                                  two
originals of the Assignment of Leases and Contracts;

(4)                                  two
originals of the Bill of Sale;

(5)                                  two
originals of the Notice to Tenants;

(6)                                  two
originals of the FIRPTA Affidavit;

(7)                                  one
conformed copy of any Transfer Declarations; and

(8)                                  one
original of the Closing Statement.

8.6           All Other
Documents.  Escrow Agent shall at the
Closing deliver by overnight express delivery, each other document received
hereunder by Escrow Agent to the person acquiring rights under said document or
for whose benefit said document was acquired.

ARTICLE IX

RETURN OF DOCUMENTS AND FUNDS UPON TERMINATION

9.1           Return of Seller’s
Documents.  If escrow or this
Agreement is terminated for any reason, Buyer shall, within five days following
such termination, deliver to Seller all documents and materials relating to the
Property previously delivered to Buyer by Seller and copies of all reports,
studies, documents and materials obtained by Buyer from third parties in
connection with the Property and Buyer’s investigation thereof.  Such items shall be delivered without
representation or warranty as to accuracy or completeness and with no right of
Seller to rely thereon without the consent of the third party.  Escrow Agent shall deliver all documents and
materials deposited by Seller and then in Escrow Agent’s possession to
Seller.  Upon delivery by Escrow Agent to
Seller of such documents and materials, Escrow Agent’s obligations with regard
to such documents and materials under this Agreement shall be deemed fulfilled
and Escrow Agent shall have no further liability with regard to such documents
and materials to either Seller or Buyer.

9.2           Return of Buyer’s
Documents.  If escrow or this
Agreement is terminated for any reason, Escrow Agent shall deliver all
documents and materials deposited by Buyer and then in Escrow Agent’s
possession to Buyer.  Upon delivery by
Escrow Agent 

 15
 

 

to Buyer of
such documents and materials, Escrow Agent’s obligations with regard to such
documents and materials under this Agreement shall be deemed fulfilled and
Escrow Agent shall have no further liability with regard to such documents and
materials to either Seller or Buyer.

9.3           Deposit.  If escrow or this Agreement is terminated (i) pursuant
to Section 5.3, Section 10.2 or Article XII or (ii) due to the
failure of a condition set forth in Section 3.1, then Buyer shall be entitled
to obtain the return of the Deposit.  If
the closing of title does not take place and escrow or this Agreement is
terminated for any other reason, Seller shall be entitled to the Deposit by
retaining or causing Escrow Agent to deliver the Deposit to Seller.

9.4           Disbursement of
Deposit.  If Escrow Agent receives a
notice from either party instructing Escrow Agent to deliver the Deposit to
such party, Escrow Agent shall deliver a copy of the notice to the other party
within three days after receipt of the notice. 
If the other party does not object to the delivery of the Deposit as set
forth in the notice within three business days after receipt of the copy of the
notice, Escrow Agent shall, and is hereby authorized to, deliver the Deposit to
the party requesting it pursuant to the notice. 
Any objection hereunder shall be by notice setting forth the nature and
grounds for the objection and shall be sent to Escrow Agent and to the party
requesting the Deposit.

9.5           No Effect on
Rights of Parties; Survival.  The
return of documents and monies as set forth above shall not affect the right of
either party to seek such legal or equitable remedies as such party may have
under Article X with respect to the enforcement of this Agreement.  The obligations under this Article IX shall
survive termination of this Agreement.

ARTICLE X

DEFAULT

10.1         Seller’s Remedies.  If the sale is not completed as herein
provided solely by reason of any material default of Buyer, Seller shall be
released from any further obligations hereunder.  Insofar as it would be extremely
impracticable and difficult to estimate the damage and harm which Seller would
suffer due to such failure, and insofar as a reasonable estimate of the total
net detriment that Seller would suffer from such failure is the amount of the
Deposit, Seller shall retain or cause Escrow Agent to deliver the Deposit to
Seller, which amount is not intended to be and is not a penalty, and which
shall be Seller’s sole remedy for damages arising from Buyer’s failure to
complete the acquisition.  If Seller is
released pursuant to this Section, Buyer shall deliver an instrument confirming
such release promptly upon demand of Seller.

10.2         Buyer’s Remedies.  If the sale is not completed as herein
provided solely by reason of any material default of Seller, Buyer shall be
entitled to (i) terminate this Agreement (by delivering
notice to Seller which includes a waiver of any right, title or interest of
Buyer in the Property) and obtain the return of the Deposit and, in the event 

 16
 

 

such
default by Seller was willful and in bad faith or based on fraud or in the
event that specific performance is otherwise not available, have Seller
reimburse Buyer up to $75,000 in the aggregate of Buyer’s documented,
third-party due diligence costs or (ii) treat this Agreement as being in
full force and effect and pursue only the specific performance of this
Agreement.  Buyer waives any right
to pursue any other remedy at law or equity for such default of Seller,
including, without limitation, any right to seek, claim or obtain damages,
punitive damages or consequential damages.

ARTICLE XI

REPRESENTATIONS AND WARRANTIES

11.1         Seller’s
Warranties and Representations.  The
matters set forth in this Section 11.1 constitute representations and
warranties by Seller which are now and (subject to matters contained in any
notice given pursuant to the next succeeding sentence) shall, in all material
respects, at the Closing be true and correct. 
If Seller learns of, or has a reason to believe that any of the
following representations and warranties may cease to be true, Seller shall
give prompt notice to Buyer (which notice shall include copies of the
instrument, correspondence, or document, if any, upon which Seller’s notice is
based).  As used in this Section 11.1,
the phrase “to the extent of Seller’s actual knowledge” shall mean the actual
knowledge of Kimberly
Adams, the asset manager responsible for the Property.  There shall be no duty imposed or implied to
investigate, inspect, or audit any such matters, and there shall be no personal
liability on the part of such asset manager. 
To the extent Buyer has or acquires actual knowledge or is deemed to
know prior to the expiration of the Investigation Period that these
representations and warranties are inaccurate, untrue or incorrect in any way,
such representations and warranties shall be deemed modified to reflect Buyer’s
knowledge or deemed knowledge.  Buyer
shall be deemed to know a representation or warranty is untrue, inaccurate or
incorrect if this Agreement or any files, documents, materials, analyses,
studies, tests, or reports disclosed or made available to Buyer prior to the
expiration of the Investigation Period contains information which is
inconsistent with such representation or warranty.

11.1.1      No Broker.  Seller has not engaged or dealt with any
broker or finder in connection with the sale contemplated by this Agreement,
except Jones
Lang LaSalle Americas, Inc., a Maryland
corporation (the “Broker”). 
Seller shall pay all brokerage commissions to the Broker, as the Broker
may be entitled thereto pursuant to the terms of a separate written
agreement.  Seller shall indemnify and
hold harmless Buyer from any claims, costs, damages or liabilities (including
attorneys’ fees) for the payment of all brokerage fees and commissions arising
from any breach of the representation contained in this Section 11.1.1 or if
the same shall be based on any statement, representation or agreement by Seller
with respect to the payment of any brokerage commissions or finders fees.

11.1.2      Power and Authority.  Seller has the legal power, right and
authority to enter into this Agreement and to consummate the transactions
contemplated hereby.

 17
 

 

11.1.3      Proceedings.  To the extent of Seller’s actual knowledge,
there is no pending or threatened condemnation or similar proceeding affecting
any part of the Real Property.

11.1.4      Contravention.  Seller is not prohibited from consummating
the transactions contemplated by this Agreement by any law, regulation,
agreement, instrument, restriction, order, or judgment.

11.1.5      Ground Lease, Leases and Contracts.  The Ground Lease, the Leases and the
Contracts comprise all of the leases and contracts which will affect the
Property on and after the Closing.

11.1.6      Compliance.  Seller has not received written notice from
any governmental authority that the Property is not in material compliance with
all applicable laws, except for such failures to comply, if any, which have
been remedied.

11.1.7      Employees.  Seller has no employees on-site at the
Property providing on-site services to the Property and all such services are
performed by Seller’s manager of the Property.

11.1.8      Litigation.  To the extent of Seller’s actual knowledge,
there is no material litigation, pending or threatened, affecting the Property
which litigation is not covered by insurance.

11.1.9         Environmental.  To the extent of Seller’s actual knowledge,
Seller has not received a written notice of any violation of environmental laws
with respect to the existence of any hazardous conditions at the Real Property.

11.1.10       Lease Defaults.  To the extent of Seller’s actual knowledge,
Seller has not received any written notice of a default from a tenant under any
Lease.

11.2         Buyer’s Warranties
and Representations.  The matters set
forth in this Section 11.2 constitute representations and warranties by Buyer
which are now and shall, at the Closing, be true and correct.

11.2.1      No Broker.  Except for the Broker, Buyer has not engaged
or dealt with any broker or finder in connection with the sale contemplated by
this Agreement.  Buyer shall indemnify
and hold Seller harmless from any claims, costs, damages or liabilities
(including attorneys’ fees) arising from any breach of the representation
contained in this Section 11.2.1 or if the same shall be based on any
statement, representation or agreement by Buyer with respect to the payment of
any brokerage commissions or finders fees.

11.2.2      Power and Authority.  Buyer has the legal power, right and
authority to enter into this Agreement and to consummate the transactions
contemplated hereby.

 18
 

 

11.2.3      Independent Investigation.  The consummation of this transaction shall
constitute Buyer’s acknowledgment that it has independently inspected and
investigated the Property and has made and entered into this Agreement based
upon such inspection and investigation and its own examination of the condition
of the Property.

11.2.4      Buyer Reliance.  Buyer is experienced in and knowledgeable
about the ownership and management of commercial real estate properties, and it
has relied and will rely exclusively on its own consultants, advisors, counsel,
employees, agents, principals and/or studies, investigations and/or inspections
with respect to the Property, its condition, value and potential.  Buyer agrees that, notwithstanding the fact
that it has received certain information from Seller or its agents or
consultants, Buyer has relied solely upon and will continue to rely solely upon
its own analysis and will not rely on any information provided by Seller or its
agents or consultants, except as expressly set forth in Section 11.1.

11.2.5      ERISA.  In connection with the acquisition of the
property which is the subject of this Agreement, Buyer is not using the assets
of any employee benefit plan (within the meaning of Section 3(3) of the
Employee Retirement Income Security Act of 1974, as amended).

11.2.6      Patriot Act.

(i)            Buyer is in compliance with the
requirements of Executive Order No. 133224, 66 Fed. Reg. 49079 (Sept. 25, 2001)
(the “Order”) and other similar requirements contained in the rules and
regulations of the Office of Foreign Assets Control, Department of the Treasury
(“OFAC”) and in any enabling legislation or other Executive Orders or
regulations in respect thereof (the Order and such other rules, regulations,
legislation, or orders are collectively called the “Orders”).  Further, Buyer covenants and agrees to make
its policies, procedures and practices regarding compliance with the Orders, if
any, available to Seller for its review and inspection during normal business
hours and upon reasonable prior notice.

(ii)           Neither Buyer nor any beneficial owner
of Buyer:

(1)           is listed on the Specially Designated
Nationals and Blocked Persons List maintained by OFAC pursuant to the Order
and/or on any other list of terrorists or terrorist organizations maintained
pursuant to any of the rules and regulations of OFAC or pursuant to any other
applicable Orders (such lists are collectively referred to as the “Lists”);

(2)           is a person or entity who has been
determined by competent authority to be subject to the prohibitions contained
in the Orders; or

 19
 

 

(3)           is owned or controlled by, or acts
for or on behalf of, any person or entity on the Lists or any other person or
entity who has been determined by competent authority to be subject to the
prohibitions contained in the Orders.

(iii)          Buyer hereby covenants and agrees that
if Buyer obtains knowledge that Buyer or any of its beneficial owners becomes
listed on the Lists or is indicted, arraigned, or custodially detained on
charges involving money laundering or predicate crimes to money laundering,
Buyer shall immediately notify Seller in writing, and in such event, Seller
shall have the right to terminate this Agreement without penalty or liability
to Buyer immediately upon delivery of written notice thereof to Buyer.

11.3         No Other
Warranties and Representations.  Except
as specifically set forth in this Article XI, neither Seller nor Buyer have
made, make or have authorized anyone to make, any warranty or representation as
to the Ground Lease, the Development Agreement, the Leases, the Contracts, any
written materials delivered to Buyer, the persons preparing such materials, the
present or future physical condition, development potential, zoning, building
or land use law or compliance therewith (including, without limitation, the
Americans with Disabilities Act), operation, income generated by, or any other
matter or thing affecting or relating to the Property or any matter or thing
pertaining to this Agreement.  Buyer
expressly acknowledges that no such warranty or representation has been made
and that Buyer is not relying on any warranty or representation whatsoever
other than as is expressly set forth in this Article XI.  Buyer shall accept the Property “as is” and
in its condition on the date of Closing subject only to the express provisions
of this Agreement.

11.3.1      DISCLAIMER AS TO THE PROPERTY.  EXCEPT AS EXPRESSLY SET FORTH IN SECTION
11.1, IT IS UNDERSTOOD AND AGREED THAT SELLER IS NOT MAKING AND HAS NOT AT ANY
TIME MADE ANY WARRANTIES OR REPRESENTATIONS OF ANY KIND OR CHARACTER, EXPRESS
OR IMPLIED, WITH RESPECT TO THE PROPERTY, INCLUDING, BUT NOT LIMITED TO, ANY
WARRANTIES OR REPRESENTATIONS AS TO HABITABILITY, MERCHANTABILITY OR FITNESS
FOR A PARTICULAR PURPOSE.

11.3.2      “AS IS” SALE.  BUYER ACKNOWLEDGES AND AGREES THAT UPON
CLOSING SELLER SHALL SELL AND CONVEY TO BUYER AND BUYER SHALL ACCEPT THE
PROPERTY “AS IS, WHERE IS, WITH ALL FAULTS”, EXCEPT TO THE EXTENT
EXPRESSLY PROVIDED OTHERWISE IN THIS AGREEMENT. 
BUYER ALSO ACKNOWLEDGES THAT THE PURCHASE PRICE REFLECTS AND TAKES INTO
ACCOUNT THAT THE PROPERTY IS BEING SOLD “AS-IS.”

11.3.3      PHYSICAL AND ENVIRONMENTAL MATTERS.  BUYER REPRESENTS TO SELLER THAT BUYER HAS
CONDUCTED, OR WILL CONDUCT PRIOR TO CLOSING, SUCH INVESTIGATIONS OF THE

 20

 

PROPERTY, INCLUDING BUT NOT LIMITED TO, THE PHYSICAL AND ENVIRONMENTAL
CONDITIONS THEREOF, AS BUYER DEEMS NECESSARY OR DESIRABLE TO SATISFY ITSELF AS
TO THE CONDITION OF THE PROPERTY AND THE EXISTENCE OR NONEXISTENCE OR CURATIVE
ACTION TO BE TAKEN WITH RESPECT TO ANY HAZARDOUS OR TOXIC SUBSTANCES ON OR
DISCHARGED FROM THE PROPERTY, AND WILL RELY SOLELY UPON SAME AND NOT UPON ANY
INFORMATION PROVIDED BY OR ON BEHALF OF SELLER OR ITS AGENTS OR EMPLOYEES WITH
RESPECT THERETO, OTHER THAN SUCH REPRESENTATIONS, WARRANTIES AND COVENANTS OF
SELLER AS ARE EXPRESSLY SET FORTH IN SECTION 11.1.  UPON CLOSING, BUYER SHALL ASSUME THE RISK
THAT ADVERSE MATTERS, INCLUDING BUT NOT LIMITED TO, CONSTRUCTION DEFECTS AND
ADVERSE PHYSICAL AND ENVIRONMENTAL CONDITIONS, MAY NOT HAVE BEEN REVEALED BY
BUYER’S INVESTIGATIONS, AND BUYER, UPON CLOSING, SHALL BE DEEMED TO HAVE
WAIVED, RELINQUISHED AND RELEASED SELLER (AND SELLER’S OFFICERS, DIRECTORS,
SHAREHOLDERS, EMPLOYEES AND AGENTS) FROM AND AGAINST ANY AND ALL CLAIMS,
DEMANDS, CAUSES OF ACTION (INCLUDING CAUSES OF ACTION IN TORT) LOSSES, DAMAGES,
LIABILITIES, COSTS AND EXPENSES (INCLUDING REASONABLE ATTORNEYS’ FEES) OF ANY
AND EVERY KIND OR CHARACTER, KNOWN OR UNKNOWN, WHICH BUYER MIGHT HAVE
ASSERTED OR ALLEGED AGAINST SELLER (AND SELLER’S OFFICERS, DIRECTORS,
SHAREHOLDERS, EMPLOYEES AND AGENTS) AT ANY TIME BY REASON OF OR ARISING OUT OF
ANY LATENT OR PATENT CONSTRUCTION DEFECTS OR PHYSICAL CONDITIONS, VIOLATIONS OF
ANY APPLICABLE LAWS AND ANY AND ALL OTHER ACTS, OMISSIONS, EVENTS, CIRCUMSTANCES
OR MATTERS REGARDING THE PROPERTY.

ARTICLE XII

CASUALTY AND CONDEMNATION

Promptly upon
learning thereof, Seller shall give Buyer written notice of any condemnation,
damage or destruction of the Real Property occurring prior to the Closing.  If prior to the Closing all or a material
portion of the Real Property is condemned, damaged or destroyed, Buyer shall
have the option of either (i) applying the proceeds of any
condemnation award or payment under any insurance policies toward the payment
of the Purchase Price to the extent such condemnation awards or insurance
payments have been received by Seller, receiving from Seller an amount equal to
any applicable deductible under any such insurance policy and receiving an
assignment from Seller of Seller’s right, title and interest in any such awards
or payments, or (ii) terminating this Agreement by delivering
written notice of such termination to Seller and Escrow Agent within ten days
after Buyer has received written notice from Seller of such material
condemnation, damage or destruction.  If
prior to the Closing an immaterial 

 21
 

 

portion of the Real
Property is condemned, damaged or destroyed, the proceeds of any condemnation
award or payment and any applicable deductible under any insurance policies shall
be applied toward the payment of the Purchase Price to the extent such
condemnation awards or insurance payments have been received by Seller and
Seller shall assign to Buyer all of Seller’s right, title and interest in any
such awards or payments.

ARTICLE XIII

CONDUCT PRIOR TO CLOSING

13.1         Conduct.  From and after the date hereof, Seller shall
operate the Property in accordance with its standard business procedures.

13.2         Actions Prohibited.  Seller shall not, without the prior written
approval of Buyer, which approval will not be unreasonably withheld or delayed:

(i)            make
any material structural alterations or additions to the Real Property or the
Air Rights Parcel except as (a) in the ordinary course of operating the Real
Property, (b) required for maintenance and repair or (c) required by the Ground
Lease, the Development Agreement, any of the Leases or the Contracts;

(ii)           sell,
transfer, encumber or change the status of title of all or any portion of the
Real Property or the Air Rights Parcel;

(iii)          change
or attempt to change, directly or indirectly, the current zoning of the Real
Property or the Air Rights Parcel in a manner materially adverse to it; or

(iv)          cancel,
amend or modify, in a manner materially adverse to the Property, any license or
permit held by Seller with respect to the Property or any part thereof which
would be binding upon Buyer after the Closing.

13.3         Modification
of Existing Ground Lease, Development Agreement, Leases and Contracts.  Prior to the expiration of the Investigation Period,
Seller may cancel, amend and modify the Ground Lease, the Development
Agreement, any of the Leases and any of the Contracts, provided notice
is given to Buyer within five business days after such action and in any event
at least two business days prior to the expiration of the Investigation
Period.  After the expiration of the
Investigation Period, Seller may not cancel, amend, or modify any material
Contracts, Leases, the Development Agreement or the Ground Lease, in a manner
binding upon Buyer after the Closing, unless Seller gives Buyer notice within
five business days after such action and provided such action is (i) in
the ordinary course of operating the Property, (ii) required by the Ground
Lease, the Development Agreement, any of the Leases or any of the Contracts or
(iii) approved by Buyer which approval will not be unreasonably withheld or
delayed.

 22
 

 

If Seller
shall request Buyer’s approval to any of the foregoing matters, Buyer shall
have five days from its receipt of such request to give Seller notice of its
approval or disapproval of such matter. 
If Buyer does not give such notice, such matter shall be deemed approved
by Buyer.

13.4         New Leases and Contracts.  Prior to the expiration of the Investigation
Period, Seller may enter into any new lease or contract affecting the Property,
or any part thereof, provided notice is given to Buyer within five
business days after such action and in any event at least two business days
prior to the expiration of the Investigation Period.  After the expiration of the Investigation
Period, Seller may not enter into any new lease or contract without Buyer’s
consent, which consent will not be unreasonably withheld or delayed.  Notwithstanding the preceding sentence, after
the expiration of the Investigation Period, Seller may enter into any new
contracts without Buyer’s consent if doing so is in the ordinary course of
operating the Property and the contract (i) will not be binding on Buyer or
(ii) is cancelable on thirty days or less notice without penalty or premium.

If Seller shall request
Buyer’s approval to any of the foregoing matters, Buyer shall have five days
from its receipt of such request to give Seller notice of its approval or
disapproval of such matter.  If Buyer
does not give such notice, such matter shall be deemed approved by Buyer.

13.5         Confidentiality.  Seller and Buyer shall, prior to the Closing,
maintain the confidentiality of this sale and purchase and shall not, except as
required by law or governmental regulation applicable to Seller or Buyer,
disclose the terms of this Agreement or of such sale and purchase to any third
parties whomsoever other than the principals of the Broker, Escrow Agent, the
Title Company and such other persons whose assistance is required in carrying
out the terms of this Agreement.  Neither
Seller nor Buyer shall at any time issue a press release or otherwise
communicate with media representatives regarding this sale and purchase unless
such release or communication has received the prior approval of the other party
hereto. At no time shall Buyer without Seller’s consent disclose the Purchase
Price or the identity of Seller, J.P. Morgan Investment Management Inc. or
JPMorgan Chase Bank, N.A., as advisor to Seller.  Buyer agrees that all documents and
information regarding the Property of whatsoever nature made available to it by
Seller or Seller’s agents and the results of all tests and studies of the
Property (collectively, the “Proprietary Information”) are confidential and
Buyer shall not disclose any Proprietary Information to any other person except
those assisting it with the analysis of the Property, and only after procuring
such person’s agreement to abide by these confidentiality restrictions.  “Proprietary Information” shall not include any
information published by Seller as public knowledge or that is otherwise
available in the public domain.  The
second and third sentence of this Section 13.5 shall survive the Closing or
termination of the Agreement.  The
remaining portion of this Section 13.5 shall terminate upon Closing.

13.6         Right to Cure.  If any title defect or other matter which
would entitle Buyer to terminate this Agreement shall first arise after Buyer
notifies Seller of its Title Objections pursuant to Section 5.3.1 and prior to
the Closing, Seller may elect, by written 

 23
 

 

notice to Buyer, to cure such defect or other
matter by causing it to be removed, insured over or bonded and Seller may
adjourn the Closing for up to thirty days to do so.  Except for
Mandatory Cure Objections, all of which Seller must cure, nothing
contained in this Section 13.6 shall require Seller to cure any such title
defect or other matter or to incur any liability or expense to do so.

13.7         SEC Reporting Requirements.  For
the period of time commencing on the date of this Agreement and continuing
through the date that is 180 days after the Closing Date, Seller shall, from
time to time, upon five days’ prior written notice from Buyer, provide Buyer
and its outside third-party accountants (“Buyer’s Accountants”) with access to
such books, records and materials relating solely to the operations and
financial results of the Property for the fiscal years that ended on December
31, 2003, December 31, 2004 and December 31, 2005 and for the nine months that
end on September 30, 2006 (or if Seller extends the Closing beyond December 31,
2006 pursuant to Section 6.2, then for the fiscal year that ends on December
31, 2006 and any interim period between January 1, 2007 and the date of
Closing), as may be reasonably required to enable Buyer and Buyer’s Accountants
to prepare property income statements in compliance with any or all of (i) Rule
3-05 or 3-14 of Regulation S-X of the Securities and Exchange Commission (the “Commission”),
as applicable; (ii) any other rule issued by the Commission and applicable to
Buyer; and (iii) any registration statement, report or disclosure statement
filed with the Commission by, or on behalf of Buyer.  During the period of time commencing on the
date of this Agreement and continuing through the date that is 180 days after
the Closing Date, Seller shall, from time to time, upon reasonable advance
notice from Buyer, make Kimberly Adams and/or Michael Diana available (or if
either person is not available, such other available and appropriate person
employed by Advisor) to answer any questions that Buyer or Buyer’s Accountants
may have with respect to the management and operations of the Property with
respect to income and operating expenses. 
The foregoing access right shall not include access to (a) books, records
and documents of Seller relating to Seller’s organization, (b) agreements among
its shareholders and (c) materials that are subject to the attorney-client
privilege or which is attorney work product. 
All costs incurred as a result of Buyer and Buyer’s Accountants
undertaking the foregoing activities shall be borne exclusively by Buyer.  All books, records, materials and responses
to questions provided to Buyer or Buyer’s Accountants pursuant to this Section
13.7 shall be provided without representation or warranty as to accuracy or
completeness or otherwise; however, Seller agrees to provide good faith
responses to Buyer’s questions relating to the management and operations of the
Property with respect to income and operating expenses.  All such activities described in this Section
13.7 shall be conducted at Seller’s or its agent’s place of business in a
commercially reasonable fashion during normal business hours.  This Section 13.7 shall survive the Closing
for the time period set forth herein.

ARTICLE XIV

NOTICES

All notices, demands or
other communications given hereunder shall be in writing and shall be deemed to
have been duly delivered upon the receipt by facsimile 

 24
 

 

transmission as evidenced
by receipt transmission report, or upon the delivery by overnight express
delivery service, addressed as follows:

If to Buyer, to:

Harvard Property Trust, LLC

15601 Dallas Parkway, Suite
600

Addison, Texas  75001

Attention:  Jon Dooley

Telephone: (214)
655-1600

Facsimile: (214)
655-1610

and

Harvard Property Trust, LLC

One Paces West

2727 Paces Ferry
Road

Suite 1730

Atlanta, Georgia
30339

Attention:  Josh Taylor

Telephone:  (404) 446-1705

Facsimile: (404)
446-1718

with a copy to:

Powell & Coleman, L.L.P.

8080 N. Central
Expressway, Suite 1380

Dallas, Texas  75206

Attention:  Randall S. Osborne

Telephone: (214) 890-7116

Facsimile: (214)
373-8768

If to Seller, to:

North Atlanta Realty
Acquisition Company, Inc.

c/o J.P. Morgan
Investment Management Inc.

227 W. Monroe

27th Floor

Chicago, Illinois 60606

Attention: Ms. Kimberly
A. Adams

Telephone:  (312) 541-0249

Facsimile:  (312) 541-2462

 25
 

 

with a copy to:

Debevoise &
Plimpton LLP

919 Third Avenue

New York, New York  10022

Attention: Peter J. Irwin, Esq.

Telephone:  (212) 909-7469

Facsimile:  (212) 909-6836

If to Escrow Agent,
to:

Partners Title Company

712 Main Street, Suite 2000E

Houston, Texas 77002-3215

Attention: Reno
Hartfiel

Telephone: (713) 229-8484

Facsimile: (713) 238-9199

or to such other address
or to such other person as any party shall designate to the others for such
purpose in the manner hereinabove set forth.

ARTICLE XV

TRANSFER OF TITLE AND POSSESSION

15.1         Transfer of Possession.  Possession of the Property shall be
transferred to Buyer at the time of Closing subject to the Permitted
Encumbrances, together with all available keys or access cards used with
respect to the Property in Seller’s possession.

15.2         Delivery of Documents at Closing.  At the time of Closing, Seller shall deliver
to Buyer originals or copies of any additional documents, instruments or
records in the possession of Seller or its agents which are necessary for the
ownership and operation of the Property.

ARTICLE XVI

GENERAL PROVISIONS

16.1         Captions.  Captions in this Agreement are inserted for
convenience of reference only and do not define, describe or limit the scope or
the intent of this Agreement or any of the terms hereof.

16.2         Exhibits.  All exhibits referred to herein and attached
hereto are a part hereof.

16.3         Entire Agreement.  This Agreement contains the entire agreement
between the parties relating to the transaction contemplated hereby and all
prior or 

 26
 

 

contemporaneous agreements, understandings,
representations and statements, oral or written, are merged herein.

16.4         Modification.  No modification, waiver, 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 or may be sought.

16.5         Attorneys’ Fees.  Should any party hereto employ an attorney
for the purpose of enforcing or construing this Agreement, or any judgment
based on this Agreement, in any legal proceeding whatsoever, including
insolvency, bankruptcy, arbitration, declaratory relief or other litigation,
the prevailing party shall be entitled to receive from the other party or
parties thereto reimbursement for all reasonable attorneys’ fees and all costs,
including but not limited to service of process, filing fees, court and court
reporter costs, investigative costs, expert witness fees and the cost of any
bonds, whether taxable or not, and such reimbursement shall be included in any
judgment, decree or final order issued in that proceeding.  The “prevailing party” means the party in
whose favor a judgment, decree, or final order is rendered.

16.6         Governing Law.  This Agreement shall be construed and
enforced in accordance with the laws of the State in which the Property is
located.

16.7         Time of Essence.  Time is of the essence to this Agreement and
to all dates and time periods set forth herein.

16.8         Survival of Warranties.  The warranties and representations contained
in Sections 11.1 and 11.2 and the provisions of Section 11.3 shall survive the
Closing, the delivery of the Deed and the payment of the Purchase Price, provided
that (i) such representations and warranties (but not such
provisions) shall cease and terminate nine (9) months after the date of
Closing, except to the extent that Buyer or Seller, as the case may be, shall
have commenced, on or before the expiration of such nine (9) month period, a
legal proceeding based on the breach thereof as of the date of Closing, and (ii) the
maximum total liability for which Seller shall be responsible with respect to
all representations and warranties shall not exceed $2,000,000 in the
aggregate, and no claim for breach of representation or warranty may be made
unless the claims, individually or in the aggregate, shall be in excess of
$50,000 after taking into account all prior claims.  Unless otherwise expressly herein stated to
survive, all other representations, covenants, conditions and agreements
contained herein shall merge into and be superseded by the various documents
executed and delivered at Closing and shall not survive the Closing or the
termination of this Agreement.  Seller
shall have no liability to Buyer after Closing for any matter disclosed by
Seller or learned by Buyer prior to Closing.

16.9         Assignment by Buyer.  Buyer may not assign its rights under this
Agreement except as specifically set forth in this Section 16.9.  Buyer may assign its rights under this
Agreement to another entity provided that (i) Buyer notifies Seller of
such assignment and the identity of the assignee at least three business days
prior to the date of the Closing, (ii) such entity is controlled or
managed directly or indirectly by 

 27
 

 

Buyer or is under common control with Buyer
and (iii) Buyer shall remain liable for all of its obligations hereunder
until the date of Closing.  Any such
assignee shall assume in writing all the obligations and liabilities of Buyer
hereunder.  If such assignment is made,
then the sale contemplated by this Agreement shall be consummated in the name
of, and by and through the authorized officials of, any such assignee or
designee.

16.10       Severability.  If any term, covenant, condition, provision
or agreement herein contained is held to be invalid, void or otherwise
unenforceable by any court of competent jurisdiction, the fact that such term,
covenant, condition, provision or agreement is invalid, void or otherwise
unenforceable shall in no way affect the validity or enforceability of any
other term, covenant, condition, provision or agreement herein contained.

16.11       Successors and Assigns.  All terms of this Agreement shall be binding
upon, inure to the benefit of and be enforceable by, the parties hereto and
their respective legal representatives, successors and assigns (subject to
Section 16.9).

16.12       Interpretation.  Seller and Buyer acknowledge each to the
other that both they and their counsel have reviewed and revised this Agreement
and that the normal rule of construction to the effect that any ambiguities are
to be resolved against the drafting party shall not be employed in the
interpretation of this Agreement or any amendments or exhibits hereto.

16.13       Counterparts.  This Agreement may be executed in any number
of counterparts, each of which so executed shall be deemed original; such
counterparts shall together constitute but one agreement.

16.14       Recordation.  This Agreement may not be recorded and any
attempt to do so shall be of no effect whatsoever.

16.15       Limitation on Liability.  In any action brought to enforce the
obligations of Seller under this Agreement, the judgment or decree shall be
subject to the provisions of Section 16.8. 
In connection with this Agreement, Advisor is acting as the investment
advisor to Seller and shall not have any individual liability hereunder.  No shareholder, officer, employee or agent of
or consultant to Advisor or of Seller shall be held to any personal liability hereunder,
and no resort shall be had to their private property, or the private property
of Advisor or of Seller for the satisfaction of any claims hereunder or in
connection with the affairs of Advisor or of Seller.

16.16       Calculation of Time Periods.  Unless otherwise specified, in computing any
period of time described in this Agreement, the day of the act or event after
which the designated period of time begins to run is not to be included and the
last day of the period so computed is to be included, unless such last day is a
Saturday, Sunday or legal holiday under the laws of the State of New York, in
which event the period shall run until the end of the next day which is neither
a Saturday nor a Sunday nor a legal holiday.

 28
 

 

ARTICLE XVII

ESCROW AGENT DUTIES
AND DISPUTES

17.1         Other Duties of Escrow Agent.  Escrow Agent shall not be bound in any way by
any other agreement or contract between Seller and Buyer, whether or not Escrow
Agent has knowledge thereof.  Escrow
Agent’s only duties and responsibilities shall be to hold the Deposit and other
documents delivered to it as agent and to dispose of the Deposit and such
documents in accordance with the terms of this Agreement.  Without limiting the generality of the foregoing,
Escrow Agent shall have no responsibility to protect the Deposit and shall not
be responsible for any failure to demand, collect or enforce any obligation
with respect to the Deposit or for any diminution in value of the Deposit from
any cause, other than Escrow Agent’s gross negligence or willful
misconduct.  Escrow Agent may, at the
expense of Seller and Buyer, consult with counsel and accountants in connection
with its duties under this Agreement. 
Escrow Agent shall be fully protected in any act taken, suffered or
permitted by it in good faith in accordance with the advice of counsel and
accountants.  Escrow Agent shall not be
obligated to take any action hereunder that may, in its reasonable judgment,
involve it in any liability unless Escrow Agent shall have been furnished with
reasonable indemnity satisfactory in amount, form and substance to Escrow
Agent.

17.2         Disputes.  Escrow Agent is acting as a stakeholder only
with respect to the Deposit.  If there is
any dispute as to whether Escrow Agent is obligated to deliver the Deposit or
as to whom the Deposit is to be delivered, Escrow Agent shall not make any
delivery, but shall hold the Deposit until receipt by Escrow Agent of an
authorization in writing, signed by all the parties having an interest in the
dispute, directing the disposition of the Deposit, or, in the absence of
authorization, Escrow Agent shall hold the Deposit until the final
determination of the rights of the parties in an appropriate proceeding.  Escrow Agent shall have no responsibility to
determine the authenticity or validity of any notice, instruction, instrument,
document or other item delivered to it, and it shall be fully protected in
acting in accordance with any written notice, direction or instruction given to
it under this Agreement and believed by it to be authentic.  If written authorization is not given, or
proceedings for a determination are not begun, within thirty (30) days after
the date scheduled for the closing of title and diligently continued, Escrow
Agent may, but is not required to, bring an appropriate action or proceeding
for leave to deposit the Deposit with a court of the State of New York pending
a determination.  Escrow Agent shall be
reimbursed for all costs and expenses of any action or proceeding, including,
without limitation, attorneys’ fees and disbursements incurred in its capacity
as Escrow Agent, by the party determined not to be entitled to the
Deposit.  Upon making delivery of the
Deposit in the manner provided in this Agreement, Escrow Agent shall have no
further liability hereunder.  In no event
shall Escrow Agent be under any duty to institute, defend or participate in any
proceeding that may arise between Seller and Buyer in connection with the
Deposit.

[Signature Page Follows.]

 29

 

IN
WITNESS WHEREOF, this Agreement has been executed as of the date first set
forth above.

	
  

  	
  SELLER

  
	
   

  	
   

  	
   

  
	
   

  	
  NORTH ATLANTA
  REALTY ACQUISITION

  
	
   

  	
  COMPANY, INC., a Delaware corporation

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Kimberly Adams

  	
   

  
	
   

  	
   

  	
  Name:

  	
   Kimberly
  Adams

  	
   

  
	
   

  	
   

  	
  Title:

  	
   VP

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BUYER

  
	
   

  	
   

  	
   

  
	
   

  	
  HARVARD PROPERTY TRUST, LLC, a

  
	
   

  	
  Delaware limited liability company

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Jon L. Dooley

  	
   

  
	
   

  	
   

  	
  Name:

  	
   Jon L.
  Dooley

  	
   

  
	
   

  	
   

  	
  Title:

  	
   EVP – Real
  Estate

  	
   

  
										

 

CONSENT AND AGREEMENT OF ESCROW AGENT

The undersigned Escrow
Agent hereby agrees to (i) accept the foregoing Agreement, (ii) be
escrow agent under said Agreement, and (iii) be bound by said
Agreement in the performance of its duties as escrow agent.

	
  

  	
  PARTNERS TITLE COMPANY

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Rick S. Van Dwight

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Rick S. Van Dwight

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Comm. Escrow Officer

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00110-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00110-of-00352.parquet"}]]