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EXHIBIT 10.47
CONTRIBUTION AGREEMENT
(FUTURE ASSET MANAGEMENT AGREEMENTS)
BY AND BETWEEN
CARR CAPITAL CORPORATION
A DISTRICT OF COLUMBIA CORPORATION,
AS CONTRIBUTOR
AND
COLUMBIA EQUITY, LP,
A VIRGINIA LIMITED PARTNERSHIP,
AS ACQUIRER
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TABLE OF CONTENTS
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ARTICLE I THE
CONTRIBUTION.......................................................................................1
1.1
Contribution..................................................................................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................................................................3
2.3 Covenants of
Acquirer.........................................................................5
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.........................................................................8
4.4 Fees and Expenses; Closing
Costs..............................................................9
4.5
Adjustments...................................................................................9
ARTICLE V
Miscellaneous..........................................................................................9
5.1
Notices.......................................................................................9
5.2 Entire Agreement; Modifications and Waivers; Cumulative
Remedies.............................10
5.3
Exhibits.....................................................................................10
5.4 Successors and
Assigns.......................................................................10
5.5 Article
Headings.............................................................................10
5.6 Governing
Law................................................................................10
5.7
Counterparts.................................................................................10
5.8
Survival.....................................................................................11
5.9
Severability.................................................................................11
5.10 Attorneys'
Fees..............................................................................11
EXHIBITS
A Assignment and Assumption Agreement
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CONTRIBUTION AGREEMENT
THIS CONTRIBUTION AGREEMENT (this "Agreement") is made as of
this 7th
day of January, 2005 by and between Carr Capital Corporation, a
District of
Columbia corporation ("Contributor"); and Columbia Equity, LP, a
Virginia
limited partnership ("Acquirer").
RECITALS
A. Contributor intends to sponsor a publicly-owned real
estate
investment trust (the "REIT"), which REIT will own property and
membership
interests in entities with direct or indirect ownership over
various real
properties and improvements located thereon (the "Properties"),
contributed by
and purchased from Contributor's affiliates and other entities
in exchange for
partnership units (the "Units") in Acquirer.
B. Contributor desires to contribute all of its right, title
and
interest in and to any asset management agreements (the "Asset
Management
Agreements") related to the Properties or other real properties
entered into by
Contributor during the period between the date first written
above and the
Closing Date (as defined below) to Acquirer, on the terms and
conditions
hereinafter set forth.
C. Acquirer desires to acquire the Asset Management
Agreements
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. Contributor agrees to contribute,
transfer,
assign and convey all of its right, title and interest in and to
the Asset
Management Agreements to Acquirer, and Acquirer agrees to
acquire and assume the
Asset Management Agreements pursuant to the terms and conditions
set forth in
this Agreement. The Asset Management Agreements 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.
1.2 Consideration. The total consideration (the
"Consideration")
for which Contributor agrees to contribute and assign the Asset
Management
Agreements 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 equal to (a) Five (5) times the
projected
aggregate asset management fees payable to Acquirer under the
Asset Management
Agreements for the twelve calendar months immediately following
the Closing
Date, (b) divided by the price per share at which the common
stock, $.01 par
value per share, (the "Common Stock") of 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.
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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 Asset Management Agreements 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 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
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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 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:
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(a) Organization and Power. Contributor is duly
incorporated, validly existing, and in good standing as a
corporation under the
laws of the District of Columbia. 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 board of directors
or shareholders
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 bylaws, regulation,
mortgage,
indenture, lien agreement, note, contract, permit, judgment,
decree, order,
restrictive covenant, statute, rule, or regulation applicable to
Contributor or
to the Asset Management Agreements.
(c) Litigation. There is no action, suit, claim, or
proceeding pending or threatened against or affecting
Contributor or the Asset
Management Agreements 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 abil
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