EXHIBIT 10.9 CONTRIBUTION AGREEMENT BY AND BETWEEN CARR CAPITAL REAL ESTATE INVESTMENTS, LLC A VIRGINIA LIMITED LIABILITY COMPANY, AS CONTRIBUTOR AND COLUMBIA EQUITY, LP, A VIRGINIA LIMITED PARTNERSHIP, AS ACQUIRER TABLE OF CONTENTSContribution Agreement |
|
|
|
You are currently viewing: This Contribution Agreement involves
Carr Capital Corporation | Carr Capital Real Estate Investment, LLC | CARR CAPITAL REAL ESTATE INVESTMENTS, LLC | Columbia Equity Trust, Inc | Columbia Equity, LP | Meadows IV, LLC. RealDealDocs™ contains millions of easily searchable legal documents and clauses from top law firms. Search for free - click here. |
|
|
|
Search Contribution Agreement by:
<PAGE>
EXHIBIT 10.9
CONTRIBUTION AGREEMENT
BY AND BETWEEN
CARR CAPITAL REAL ESTATE INVESTMENTS, LLC
A VIRGINIA LIMITED LIABILITY COMPANY,
AS CONTRIBUTOR
AND
COLUMBIA EQUITY, LP,
A VIRGINIA LIMITED PARTNERSHIP,
AS ACQUIRER
<PAGE>
TABLE OF CONTENTS
<TABLE>
<S> <C>
ARTICLE I THE CONTRIBUTION........................................................................................ 1
1.1 Contribution of Membership Interest........................................................ 1
1.2 Consideration.............................................................................. 1
1.3 Redemption Rights for Units................................................................ 2
1.4 Tax Consequences to Contributor............................................................ 2
ARTICLE II REPRESENTATIONS AND COVENANTS.......................................................................... 2
2.1 Representations by Acquirer................................................................ 2
2.2 Representations by Contributor............................................................. 4
2.3 Covenants of Acquirer...................................................................... 6
2.4 Covenants of Contributor................................................................... 6
ARTICLE III Conditions Precedent to the Closing................................................................... 7
3.1 Conditions to Acquirer's Obligations....................................................... 7
3.2 Conditions to Contributor's Obligations.................................................... 7
ARTICLE IV Closing and Closing Documents.......................................................................... 8
4.1 Closing.................................................................................... 8
4.2 Contributor's Deliveries................................................................... 8
4.3 Acquirer's Deliveries...................................................................... 9
4.4 Fees and Expenses; Closing Costs........................................................... 9
4.5 Adjustments................................................................................ 9
ARTICLE V Miscellaneous........................................................................................... 10
5.1 Notices.................................................................................... 10
5.2 Entire Agreement; Modifications and Waivers; Cumulative Remedies........................... 10
5.3 Exhibits................................................................................... 11
5.4 Successors and Assigns..................................................................... 11
5.5 Article Headings........................................................................... 11
5.6 Governing Law.............................................................................. 11
5.7 Counterparts............................................................................... 11
5.8 Survival................................................................................... 11
5.9 Severability............................................................................... 11
5.10 Attorneys' Fees............................................................................ 11
5.11 Section 8.4 Rights......................................................................... 12
</TABLE>
EXHIBITS
A Assignment and Assumption Agreement
<PAGE>
CONTRIBUTION AGREEMENT
THIS CONTRIBUTION AGREEMENT (this "Agreement") is made as of this 31st day
of January, 2005 by and between Carr Capital Real Estate Investments, LLC, a
Virginia limited liability company ("Contributor"); and Columbia Equity, LP, a
Virginia limited partnership ("Acquirer").
RECITALS
A. Meadows IV, LLC, a Virginia limited liability company (the "LLC") is
the owner of certain land located in Chantilly, Virginia (the "Land") and the
office building and related improvements located thereon (the "Improvements"),
which Land and Improvements (collectively, the "Property") are more commonly
known as the Meadows IV Building.
B. Meadows IV Investors, LLC, a Virginia limited liability company
("Meadows IV Investors") is the direct and indirect owner of One Hundred and
00/100 percent (100.00%) of the membership interests in the LLC.
C. Contributor is the record and beneficial owner of 49/100 percent
(0.49%) of the membership interests in Meadows IV Investors (the "Membership
Interest").
D. Contributor desires to contribute the Membership Interest to
Acquirer, on the terms and conditions hereinafter set forth.
E. Acquirer desires to acquire the Membership Interest from
Contributor, on the terms and conditions hereinafter set forth.
AGREEMENT
NOW, THEREFORE, for and in consideration of the mutual covenants herein
contained, the parties hereto agree as follows:
ARTICLE I
THE CONTRIBUTION
1.1 Contribution of Membership Interest. Contributor agrees to
contribute, transfer, assign and convey the Membership Interest to Acquirer, and
Acquirer agrees to acquire and accept transfer of the Membership Interest
pursuant to the terms and conditions set forth in this Agreement. The Membership
Interest shall be transferred to Acquirer free and clear of all liens,
encumbrances, security interests, prior assignments or conveyances, conditions,
restrictions, voting agreements, claims, and any other matters affecting title
thereto (other than the LLC's operating agreement (the "LLC Operating
Agreement")).
1.2 Consideration. The total consideration (the "Consideration") for
which Contributor agrees to contribute and assign the Membership Interest to
Acquirer, and which Acquirer agrees to pay or deliver to Contributor, subject to
the terms of this Agreement, shall be the issuance to Contributor of a number of
units of limited partnership interests in Acquirer ("Units") equal to (a) a
value of the Membership Interest providing the Contributor with a twenty
-1-
<PAGE>
percent (20%) IRR (as defined in Meadows IV Investors' operating agreement (the
"Meadows IV Investors Operating Agreement")), based on a minimum of a six month
investment holding period for Seller's Capital Contribution (as defined in
Meadows IV Investors Operating Agreement), (b) divided by the price per share at
which the common stock, $.01 par value per share, (the "Common Stock") of
Columbia Equity Trust, Inc., a Maryland corporation and the general partner of
Acquirer (the "REIT"), is offered to the public in the underwritten initial
public offering of the Common Stock (the "IPO"). On the Closing Date (as defined
below), the Units shall be issued to Contributor. Upon the request of
Contributor, Acquirer shall issue certificates reflecting Contributor's
ownership of Units. The certificates evidencing the Units will bear appropriate
legends indicating (i) that the Units have not been registered under the
Securities Act of 1933, as amended ("Securities Act"), and (ii) that Acquirer's
Amended and Restated Agreement of Limited Partnership (the "Partnership
Agreement") restricts the transfer of the Units. Upon receipt of the Units and
execution and delivery of the Partnership Agreement, Contributor shall become a
limited partner of Acquirer.
1.3 Redemption Rights for Units. Each Unit shall be redeemable, at the
option of the holder, in accordance with, but subject to the restrictions
contained in, the Partnership Agreement; provided, however, that such redemption
option may not be exercised prior to the first anniversary of the Closing Date.
1.4 Tax Consequences to Contributor. Notwithstanding anything to the
contrary contained in this Agreement, including without limitation the use of
words and phrases such as "sell," "sale," purchase," and "pay," the parties
hereto acknowledge and agree that it is their intent that the transaction
contemplated hereby be treated for federal income tax purposes as the
contribution of the Membership Interest by Contributor to Acquirer in exchange
for Units pursuant to Section 721 of the Internal Revenue Code of 1986, as
amended (the "Code"), and not as a transaction in which Contributor is acting
other than in its capacity as a prospective partner of Acquirer.
ARTICLE II
REPRESENTATIONS AND COVENANTS
2.1 Representations by Acquirer. Acquirer hereby represents and warrants
unto Contributor that the following statements are true, correct, and complete
in every material respect as of the date of this Agreement and will be true,
correct, and complete as of the Closing Date:
(a) Organization and Power. Acquirer is duly organized and validly
existing, under the laws of the Commonwealth of Virginia, and has full right,
power, and authority to enter into this Agreement and to perform all of its
obligations under this Agreement; and, the execution and delivery of this
Agreement and the performance by Acquirer of its obligations under this
Agreement have been duly authorized by all requisite action of Acquirer and
require no further action or approval of Acquirer's partners or of any other
individuals or entities in order to constitute this Agreement as a binding and
enforceable obligation of Acquirer.
(b) Noncontravention. Neither the entry into nor the performance
of, or compliance with, this Agreement by Acquirer has resulted, or will result,
in any violation of, or
-2-
<PAGE>
default under, or result in the acceleration of, any obligation under the
Partnership Agreement, or any mortgage, indenture, lien agreement, note,
contract, permit, judgment, decree, order, restrictive covenant, statute, rule,
or regulation applicable to Acquirer.
(c) Litigation. There is no action, suit, or proceeding, pending
or known to be threatened, against or affecting Acquirer in any court or before
any arbitrator or before any federal, state, municipal, or other governmental
department, commission, board, bureau, agency or instrumentality which (i) in
any manner raises any question affecting the validity or enforceability of this
Agreement, (ii) would reasonably be expected to materially and adversely affect
the business, financial position, or results of operations of Acquirer, or (iii)
would reasonably be expected to materially and adversely affect the ability of
Acquirer to perform its obligations hereunder, or under any document to be
delivered pursuant hereto.
(d) Units Validly Issued. The Units, when issued, will have been
duly and validly authorized and issued, free of any preemptive or similar
rights, and will be fully paid and nonassessable, without any obligation to
restore capital except as required by the Virginia Revised Uniform Limited
Partnership Act (the "Limited Partnership Act"). Upon execution and delivery of
the Partnership Agreement by Contributor, Contributor shall be admitted as a
limited partner of Acquirer as of the Closing Date and shall be entitled to all
of the rights and protections of a limited partner under the Limited Partnership
Act and the provisions of the Partnership Agreement, with the same rights,
preferences, and privileges as all other limited partners on a pari passu basis.
(e) Consents. Each consent, approval, authorization, order,
license, certificate, permit, registration, designation, or filing by or with
any governmental agency or body necessary for the execution, delivery, and
performance of this Agreement or the transactions contemplated hereby by
Acquirer has been obtained.
(f) Bankruptcy with respect to Acquirer. No Act of Bankruptcy has
occurred with respect to Acquirer. As used herein, "Act of Bankruptcy" shall
mean if a party hereto shall (A) apply for or consent to the appointment of, or
the taking of possession by, a receiver, custodian, trustee or liquidator of
itself or of all or a substantial part of its property, (B) admit in writing its
inability to pay its debts as they become due, (C) make a general assignment for
the benefit of its creditors, (D) file a voluntary petition or commence a
voluntary case or proceeding under the Federal Bankruptcy Code (as now or
hereafter in effect), (E) be adjudicated bankrupt or insolvent, (F) file a
petition seeking to take advantage of any other law relating to bankruptcy,
insolvency, reorganization, winding-up or composition or adjustment of debts,
(G) fail to controvert in a timely and appropriate manner, or acquiesce in
writing to, any petition filed against it in an involuntary case or proceeding
under the Federal Bankruptcy Code (as now or hereafter in effect), or (H) take
any action for the purpose of effecting any of the foregoing.
(g) Brokerage Commission. Acquirer has not engaged the services
of, nor has it or will it or Contributor become liable to, any real estate
agent, broker, finder or any other person or entity for any brokerage or
finder's fee, commission or other amount with respect to the transactions
described herein on account of any action by Acquirer. Acquirer hereby agrees to
indemnify and hold Contributor and its employees, directors, members, partners,
affiliates and
-3-
<PAGE>
agents harmless against any claims, liabilities, damages or expenses arising out
of a breach of the foregoing. This indemnification shall survive Closing or any
termination of this Agreement.
2.2 Representations by Contributor. Contributor hereby represents and
warrants unto Acquirer that each and every one of the following statements is
true, correct, and complete in every material respect as of the date of this
Agreement and will be true, correct, and complete as of the Closing Date:
(a) Organization and Power. Contributor is duly organized, validly
existing, and in good standing as a limited liability company under the laws of
the Commonwealth of Virginia. Contributor has full right, power, and authority
to enter into this Agreement and to assume and perform all of its obligations
under this Agreement; and the execution and delivery of this Agreement and the
performance by Contributor of its obligations hereunder have been duly
authorized by all requisite action of Contributor and require no further action
or approval of Contributor's members or managers or of any other individuals or
entities in order to constitute this Agreement as a binding and enforceable
obligation of Contributor.
(b) Noncontravention. Neither the entry into nor the performance
of, or compliance with, this Agreement by Contributor has resulted, or will
result, in any violation of, or default under, or result in the acceleration of,
any obligation under any limited liability company agreement, operating
agreement, regulation, mortgage, indenture, lien agreement, note, contract,
permit, judgment, decree, order, restrictive covenant, statute, rule, or
regulation applicable to Contributor or to the Membership Interest.
(c) Litigation. There is no action, suit, claim, or proceeding
pending or threatened against or affecting Contributor or the Membership
Interest in any court, or before any arbitrator, or before any federal, state,
municipal or other governmental department, commission, board, bureau, agency or
instrumentality which (A) in any manner raises any question affecting the
validity or enforceability of this Agreement, (B) would reasonably be expected
to materially and adversely affect the business, financial position or results
of operations of Contributor, (C) would reasonably be expected to materially and
adversely affect the ability of Contributor to perform its obligations
hereunder, or under any document to be delivered pursuant hereto, (D) would
reasonably be expected to create a lien on the Membership Interest, any part
thereof, or any interest therein, or (E) would reasonably be expected to
adversely affect the Membership Interest, any part thereof, or any interest
therein.
(d) Good Title. (A) Contributor has good title to the Membership
Interest on the date hereof and will have good title to the Membership Interest
on the Closing Date (other than the LLC Operating Agreement), (B) the Membership
Interest on the date






