Contribution And Exchange Agreement

Exhibit 10.98


CONTRIBUTION AND EXCHANGE AGREEMENT


AMONG


THE MK CONTRIBUTORS,


THE MK ENTITIES,

THE PATRIOT CONTRIBUTORS,


THE PATRIOT ENTITIES,


PATRIOT AMERICAN MANAGMENT AND LEASING CORP.,


CALI REALTY, L.P.


AND


CALI REALTY CORPORATION


Date: September 18, 1997


TABLE OF CONTENTS
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INDEX OF DEFINED TERMS . . . . . . . . . . . . . . . . . . . . . . . . . . . .


INDEX OF SCHEDULES AND EXHIBITS. . . . . . . . . . . . . . . . . . . . . . . .


1. SUBJECT OF CONVEYANCE. . . . . . . . . . . . . . . . . . . . . . . . . .


2. PAYMENT TERMS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .


3. INSPECTION PERIOD; RIGHTS OF TERMINATION
AND REJECTION PRIOR TO CLOSING . . . . . . . . . . . . . . . . . . . . .


4. TITLE; MATTERS TO WHICH THIS EXCHANGE IS SUBJECT . . . . . . . . . . . .


5. REPRESENTATIONS AND WARRANTIES OF MACK . . . . . . . . . . . . . . . . .


6. REPRESENTATIONS AND WARRANTIES OF CALI
AND CRLP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .


7. COVENANTS OF MACK. . . . . . . . . . . . . . . . . . . . . . . . . . . .


8. OPTION PROPERTIES. . . . . . . . . . . . . . . . . . . . . . . . . . . .


9. ESTOPPEL CERTIFICATES. . . . . . . . . . . . . . . . . . . . . . . . . .


10. CLOSING. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .


11. ADJUSTMENTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .


12. CONDITIONS PRECEDENT TO CLOSING. . . . . . . . . . . . . . . . . . . . .


13. LEASING COMMISSIONS AND TENANT IMPROVEMENT OBLIGATIONS . . . . . . . . .


14. ASSIGNMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .


15. BROKER . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .


16. CASUALTY LOSS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .


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17. CONDEMNATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .


18. TRANSFER RESTRICTIONS; RIGHT OF FIRST OFFER. . . . . . . . . . . . . . .


19. LIMITED GUARANTY OF MACK . . . . . . . . . . . . . . . . . . . . . . . .


20. TAX MATTERS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .


21. PUBLICATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .


22. REMEDIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .


23. EMPLOYEE MATTERS . . . . . . . . . . . . . . . . . . . . . . . . . . . .


24. NOTICE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .


25. INTENTIONALLY DELETED. . . . . . . . . . . . . . . . . . . . . . . . . .


26. CORPORATE NAME CHANGE; MANAGEMENT CHANGES;
OTHER ARRANGEMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . .


27. RESTRICTIONS ON SALE OF THE PROPERTY . . . . . . . . . . . . . . . . . .


28. SPECIAL ENVIRONMENTAL MATTERS. . . . . . . . . . . . . . . . . . . . . .


29. MISCELLANEOUS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .


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INDEX OF DEFINED TERMS
----------------------


DEFINED TERM SECTION
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1. Acceptance Notice. . . . . . . . . . . . . . . .Section 18.6(b) 2. Act. . . . . . . . . . . . . . . . . . . . . . .Section 5.2 3. Additional Mack Inspection Period. . . . . . . .Section 3.1(a)(c) 4. Additional Rents . . . . . . . . . . . . . . . .Section 11.2 5. Additional Termination Rights. . . . . . . . . .Section 3.1(a)(c) 6. Additional Title Exceptions. . . . . . . . . . .Section 4.1(c) 7. Agreement. . . . . . . . . . . . . . . . . . . .Preface 8. Allocated Property Values. . . . . . . . . . . .Section 2.1 9. Assignment of Contributed Interest . . . . . . .Section 10.2(b)(i) 10. Board. . . . . . . . . . . . . . . . . . . . . .Section 10.3(c) 11. Books and Records. . . . . . . . . . . . . . . .Section 1(g) 12. Built-in-Gain. . . . . . . . . . . . . . . . . .Section 27.1 13. Cali . . . . . . . . . . . . . . . . . . . . . .Preface 14. Cali Board Members . . . . . . . . . . . . . . .Section 26.2(i) 15. Cali Debt Amount . . . . . . . . . . . . . . . .Section 19.1 16. Cali Financials. . . . . . . . . . . . . . . . .Section 6.1(f) 17. Cali 401(k) Plans. . . . . . . . . . . . . . . .Section 6.1(r)(ii) 18. Cali Group . . . . . . . . . . . . . . . . . . .Section 19.1 19. Cali Inspection Period . . . . . . . . . . . . .Section 3.1(a) 20. Cali Property. . . . . . . . . . . . . . . . . .Section 3.1(d) 21. Cali Rent Roll. . . . . . . . . . . . . . . . .Section 6.1(t) 22. Cali Securities. . . . . . . . . . . . . . . . .Section 18.1 23. Cash Payment . . . . . . . . . . . . . . . . . .Section 2.2 24. Casualty . . . . . . . . . . . . . . . . . . . .Section 16.2 25. Casualty Notice. . . . . . . . . . . . . . . . .Section 16.2 26. CERCLA . . . . . . . . . . . . . . . . . . . . .Section 5.1(y)(x)(A) 27. Closing. . . . . . . . . . . . . . . . . . . . .Section 10.1 28. Closing Date . . . . . . . . . . . . . . . . . .Section 10.1 29. Code . . . . . . . . . . . . . . . . . . . . . .Section 5.1(w)(ii) 30. Common Stock . . . . . . . . . . . . . . . . . .Section 2.3(a) 31. Common Units . . . . . . . . . . . . . . . . . .Recitals 32. Consulting Agreement . . . . . . . . . . . . . .Section 12.2(n) 33. Contaminants . . . . . . . . . . . . . . . . .Section 5.1(y)(x)(A) 34. Contributed Entities . . . . . . . . . . . . . .Recitals


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35. Contributed Interests. . . . . . . . . . . . . .Section 1.2 36. CRLP . . . . . . . . . . . . . . . . . . . . . .Preface 37. Damaged Property . . . . . . . . . . . . . . . .Section 16.2 38. Deeds. . . . . . . . . . . . . . . . . . . . . .Section 10.2(a)(i) 39. Discharge. . . . . . . . . . . . . . . . . . . .Section 5.1(y)(x)(B) 40. Easement Rights. . . . . . . . . . . . . . . . .Section 1.1(b) 41. Eliminated Property. . . . . . . . . . . . . . .Section 3.4(c) 42. Encumbered Property. . . . . . . . . . . . . . .Section 3.4(c) 43. Environmental Documents. . . . . . . . . . . . .Section 5.1(y)(x)(C) 44. Environmental Laws . . . . . . . . . . . . . . .Section 5.1(y)(x)(D) 45. EP Acceptance Notice . . . . . . . . . . . . . .Section 3.5(b) 46. EP Offer Notice. . . . . . . . . . . . . . . . .Section 3.5(a) 47. EP Offer Period. . . . . . . . . . . . . . . . .Section 3.5(b) 48. EP Offer Price . . . . . . . . . . . . . . . . .Section 3.5(a) 49. EP Offer Terms . . . . . . . . . . . . . . . . .Section 3.5(a) 50. ERISA. . . . . . . . . . . . . . . . . . . . . .Section 5.1(w)(ii) 51. Estate Units . . . . . . . . . . . . . . . . . .Section 5.2(d) 52. Estoppel Certificates. . . . . . . . . . . . . .Section 9.1 53. Exchange Act . . . . . . . . . . . . . . . . . .Section 5.2(b) 54. Exchange Consideration . . . . . . . . . . . . .Section 2.1 55. Exchange Property. . . . . . . . . . . . . . . .Section 1.3 56. Excluded Properties. . . . . . . . . . . . . . .Section 5.1(r) 57. Executive Committee. . . . . . . . . . . . . . .Section 10.3(c) 58. Expansion Space. . . . . . . . . . . . . . . . .Section 25 59. First American . . . . . . . . . . . . . . . . .Section 4.2(a) 60. GAAP . . . . . . . . . . . . . . . . . . . . . .Section 5.1(v) 61. Governmental Authorities . . . . . . . . . . . .Section 5.1(k) 62. Ground Leases. . . . . . . . . . . . . . . . . .Section 1.1(a) 63. Holding Period . . . . . . . . . . . . . . . . .Section 18.3 64. Honeywell Building . . . . . . . . . . . . . . .Section 25 65. Honeywell Consideration. . . . . . . . . . . . .Section 25 66. Improvements . . . . . . . . . . . . . . . . . .Section 1.1(a) 67. Inspection Period. . . . . . . . . . . . . . . .Section 3.1(b) 68. Insurance Policies . . . . . . . . . . . . . . .Section 16.1 69. Intangible Property. . . . . . . . . . . . . . .Section 1.1(f) 70. Land . . . . . . . . . . . . . . . . . . . . . .Section 1.1(a) 71. Leases . . . . . . . . . . . . . . . . . . . . .Section 1.1(d) 72. MACK . . . . . . . . . . . . . . . . . . . . . .Preface 73. Mack Board Members . . . . . . . . . . . . . . .Section 26.2(i)


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74. Mack-Cali. . . . . . . . . . . . . . . . . . . .Section 26.1 & Recital 75. Mack Common Units. . . . . . . . . . . . . . . .Section 2.3(a) 76. Mack Contributors. . . . . . . . . . . . . . . .Preface 77. Mack Debt Amount . . . . . . . . . . . . . . . .Section 19.1 78. Mack Entities. . . . . . . . . . . . . . . . . .Preface 79. Mack Group . . . . . . . . . . . . . . . . . . .Section 5.1(dd) 80. Mack Inspection Period . . . . . . . . . . . . .Section 3.1(b) 81. Mack 401(K) Plan . . . . . . . . . . . . . . . .Section 5.1(w)(ii) 82. Mack Securities. . . . . . . . . . . . . . . . .Section 5.2 83. Mack Security Holders. . . . . . . . . . . . . .Section 5.2(a) 84. Mack's Significant Interest. . . . . . . . . . .Section 26.2(v) 85. Mack Unit Group. . . . . . . . . . . . . . . . .Section 19.1 86. Mack Unit Holders. . . . . . . . . . . . . . . .Section 2.2 87. Material Taking. . . . . . . . . . . . . . . . .Section 17 88. MK Contributors. . . . . . . . . . . . . . . . .Preface 89. MK Entities. . . . . . . . . . . . . . . . . . .Preface 90. Mortgage Debt Amount . . . . . . . . . . . . . .Section 2.2 91. Mortgages. . . . . . . . . . . . . . . . . . . .Section 2.2 92. New Cali Employees . . . . . . . . . . . . . . .Section 5.1(w)(i) 93. Notice of Offer. . . . . . . . . . . . . . . . .Section 18.6(a) 94. Offer Period . . . . . . . . . . . . . . . . . .Section 18.6(b) 95. Offer Price. . . . . . . . . . . . . . . . . . .Section 18.6(a) 96. Offer Securities . . . . . . . . . . . . . . . .Section 18.6(a) 97. Offer Terms. . . . . . . . . . . . . . . . . . .Section 18.6(a) 98. Offering Notice. . . . . . . . . . . . . . . . .Section 27.4 99. Omnibus Assignment . . . . . . . . . . . . . . .Section 10.2(a)(vi) 100. OP Agreement . . . . . . . . . . . . . . . . . .Section 5.2(a) 101. Option Agreement . . . . . . . . . . . . . . . .Section 8.1 102. Option Properties. . . . . . . . . . . . . . . .Section 8.1 103. Original Allocation Formula. . . . . . . . . . .Section 2.6(b) 104. PAM. . . . . . . . . . . . . . . . . . . . . . .Recital 105. PAM 401(k) Plan. . . . . . . . . . . . . . . . .Section 5.1(w)(ii) 106. Partner Property . . . . . . . . . . . . . . . .Section 3.4(b) 107. Patriot Contributors . . . . . . . . . . . . . .Preface 108. Patriot Entities . . . . . . . . . . . . . . . .Preface 109. PCBs . . . . . . . . . . . . . . . . . . . . . .Section 5.1(y)(vi) 110. Permits. . . . . . . . . . . . . . . . . . . . .Section 5.1(y)(vii) 111. Permits and Licenses . . . . . . . . . . . . . .Section 1.1(f) 112. Permitted Assignee . . . . . . . . . . . . . . .Section 14


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113. Permitted Encumbrances . . . . . . . . . . . . .Section 4.1 114. Permitted Transferees. . . . . . . . . . . . . .Section 18.5 115. Person . . . . . . . . . . . . . . . . . . . . .Section 18.2 116. Personal Property. . . . . . . . . . . . . . . .Section 1.1(c) 117. Phase I Reports. . . . . . . . . . . . . . . . .Section 3.3 118. Preferred Stock. . . . . . . . . . . . . . . . .Section 6.1(l)(i) 119. Preferred Unit Holders . . . . . . . . . . . . .Section 2.2 120. Preferred Units. . . . . . . . . . . . . . . . .Recitals 121. Pro Forma Rent Roll. . . . . . . . . . . . . . .Section 5.1(f) 122. Property . . . . . . . . . . . . . . . . . . . .Section 1.1(h) 123. Property Financials. . . . . . . . . . . . . . .Section 5.1(v) 124. Real Property. . . . . . . . . . . . . . . . . .Section 1(b) 125. REIT . . . . . . . . . . . . . . . . . . . . . .Section 6.1(m)(i) 126. Rent Roll. . . . . . . . . . . . . . . . . . . .Section 5.1(e) 127. Representation Holding Period. . . . . . . . . .Section 5.4(b) 128. Resolved Property. . . . . . . . . . . . . . . .Section 3.4(d) 129. Restricted Period. . . . . . . . . . . . . . . .Section 27.1 130. RM Debt Amount . . . . . . . . . . . . . . . . .Section 19.1 131. RM Group . . . . . . . . . . . . . . . . . . . .Section 19.1 132. SEC Documents. . . . . . . . . . . . . . . . . .Section 5.2(b) 133. Security Deposit . . . . . . . . . . . . . . . .Section 1.1(d) 134. Selling Holder . . . . . . . . . . . . . . . . .Section 18.6(a) 135. Service Contracts. . . . . . . . . . . . . . . .Section 1.1(f) 136. Stock Option Plan. . . . . . . . . . . . . . . .Section 10.3(c) 137. Subsidiaries . . . . . . . . . . . . . . . . . .Section 6.1(f) 138. Subsidiary Partnership . . . . . . . . . . . . .Recitals 139. Tainted Property . . . . . . . . . . . . . . . .Section 3.4(a) 140. Taxes. . . . . . . . . . . . . . . . . . . . . .Section 20.4 141. Tenants. . . . . . . . . . . . . . . . . . . . .Section 4.1(b) 142. Threshold Amount . . . . . . . . . . . . . . . .Section 7.1(m) 143. Title Commitments. . . . . . . . . . . . . . . .Section 4.2(a) 144. Title Company. . . . . . . . . . . . . . . . . .Section 4.2(a) 145. Title Documents. . . . . . . . . . . . . . . . .Section 4.2(a) 146. Title Policy . . . . . . . . . . . . . . . . . .Section 4.3 147. Tradenames . . . . . . . . . . . . . . . . . . .Section 1.1(e) 148. Transfer . . . . . . . . . . . . . . . . . . . .Section 5.2(a) 149. Transfer Securities. . . . . . . . . . . . . . .Section 18.6 150. Underlying Shares. . . . . . . . . . . . . . . .Section 18.1 151. Underlying Units . . . . . . . . . . . . . . . .Section 18.4


vi


152. Unit Holders . . . . . . . . . . . . . . . . . .Section 2.2 153. Units. . . . . . . . . . . . . . . . . . . . . .Recitals 154. Warrant Holders. . . . . . . . . . . . . . . . .Section 2.2 155. Warrants . . . . . . . . . . . . . . . . . . . .Section 2.5


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SCHEDULES


Schedule 1.1(a)(i) Land, Property Addresses, Block and Lot Numbers Schedule 1.1(a)(ii) Ground Leases Schedule 1.1(c) Excluded Personal Property Schedule 2.1 Allocated Property Values Schedule 3.4(d) Put/Call Procedures Schedule 4.1(c) Existing Title Policies Schedule 4.1(e) Surveys of Real Property Schedule 5.1(a) Mack Limited Liability Companies, By State Schedule 5.1(b) Mack Limited Partnerships, By State Schedule 5.1(c) Non-Consenting Partners By Property Schedule 5.1(d) Leases as of July 31, 1997 Schedule 5.1(e) Rent Roll as of July 31, 1997 Schedule 5.1(f) Pro Forma Rent Roll Schedule 5.1(g) Contracts Schedule 5.1(h) Litigation and Disputes Affecting Exchange Property or
Option Property Schedule 5.1(i) Proceedings related to the Real Property Schedule 5.1(j) Third Party Reports related to Physical Condition of
the Real Property and Option Properties/Engineering
Reports Schedule 5.1(k) Violations affecting the Real Property or Option
Properties Schedule 5.1(l) Personnel Schedule 5.1(m-1) Capital Expenditure Obligations Affecting Exchange
Property - MACK's Responsibility Schedule 5.1(m-2) Capital Expenditure Obligations Affecting Exchange
Property - Mack-Cali's Responsibility Schedule 5.1(o) Encumbered Personal Property Schedule 5.1(q) Exchange Property Generating Revenue/Income Other than
the Leases Schedule 5.1(r) Excluded Properties Schedule 5.1(t) Storage Tanks or Vessels on Real Property or Option
Property Schedule 5.1(u) Repair Work Recommended by Insurance Companies, Fire
Underwriters or Mortgage Holders Schedule 5.1(v) Year-End Adjustments Schedule 5.1(w)(i) All Existing Mack Entities and PAM Benefit Plans and
Agreements Schedule 5.1(y)(ii) Environmental Discharges Schedule 5.1(y)(iv) Storage Tanks and Vessels Schedule 5.1(y)(v) Asbestos Schedule 5.1(y)(vi) PCB Items Schedule 5.1(y)(vii) Missing Permits Schedule 5.1(y)(viii) Property Previously Used as a Transfer Station,
Incinerator, Landfill or Resource Recovery Facility Schedule 5.1(z) Tax Audits Regarding Exchange Property or Option Property Schedule 5.1(aa) Tax Basis of Exchange Property Schedule 5.1(bb) Maintenance Organization Delinquencies, Late Payments,
etc.


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Schedule 5.1(ff)(i) Additional Services Provided to Tenants Schedule 5.1(ff)(ii) Tenant Rent Based on Income/Profits of Any Person Schedule 5.1(ff)(iii) Agreements in Which Tenant Rent Attributable to
Personal Property Exceeds 15% of Total Rent Schedule 5.1(gg) Mack Material Liabilities and Obligations Schedule 6.1(a) Cali Non-Consenting Partners Schedule 6.1(i) Cali Subsidiaries, Partnerships and Trusts Schedule 6.1(j) Extraordinary Cali Business Transactions Schedule 6.1(k) Cali Material Liabilities and Obligations Schedule 6.1(l)(iii) Conversion/Exchange Rights Regarding Warrants, Options
and Convertible Securities Schedule 6.1(m)(ii) Cali Tax Proceedings Schedule 6.1(m)(iv) Individual Owners of Cali Interests in Excess of 9.8% Schedule 6.1(q) Cali Board Committees Schedule 6.1(r)(i) Agreements with Certain Cali Executives Schedule 6.1(s) Agreements Regarding Sale or Voting of Units or Common
Stock Schedule 6.1(t) Cali Rent Roll Schedule 6.1(v) Litigation, Suits Affecting Cali Property Schedule 6.1(w) Condemnation Notices Affecting Cali Property Schedule 6.1(x) Notices of Violation Regarding Cali Property Schedule 6.1(y) Storage Tanks and Vessels on Cali Property Schedule 7.1(m) Threshold Amount Schedule 7.2 Exchange Property Charts and Tables Schedule 8.1 Option Properties Schedule 10.2(b)(vi) Exchange Property Insurance Policies Schedule 12.2(n) MACK Properties Schedule 18.4 Agreement Regarding Common Stock Trading Blocks of One
Million Shares or Less Schedule 19.1(a) Cali Group Guarantors/Indemnitors Schedule 19.1(b) RM Group Guarantors/Indemnitors Schedule 20.3 Reduction of Assessed Valuation of the Real Property
and the Option Properties Schedule 26.2(v) Mack Significant Interest Attribution Rules Schedule 27.1 7-1/2 Year Average Restricted Property Schedule 28.1 Special Environmental Matters


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EXHIBITS


Exhibit A MK Contributors Exhibit A-1 MK Entities Exhibit A-2 Patriot Contributors Exhibit A-3 Patriot Entities Exhibit 2.4(a)(i) Series A Preferred Unit/Certificate of Designation Exhibit 2.4(a)(ii) Series B Preferred Unit/Certificate of Designation Exhibit 2.5 Warrants to Purchase Common Units Exhibit 9.1 Form of Estoppel Certificate Exhibit 10.2(a)(vi) Omnibus Assignment Exhibit 10.2(b)(i) Assignment of Contributed Interest Exhibit 10.2(c)(ix) Tradenames Assignment Agreement Exhibit 10.2(c)(x)-1 Non-Competition Agreements/Earle Mack, David Mack and
Frederick Mack Exhibit 10.2(c)(x)-2 Non-Competition Agreement/William Mack Exhibit 10.3(j) Registration Rights Agreement Exhibit 10.3(o) Summary of Principal Terms of Amendment to the OP
Agreement


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CONTRIBUTION AND EXCHANGE AGREEMENT


THIS CONTRIBUTION AND EXCHANGE AGREEMENT (the "AGREEMENT") made this 18th day of September, 1997 by and among the parties set forth on EXHIBIT A annexed hereto and made a part hereof (collectively, the "MK CONTRIBUTORS"), the parties set forth on EXHIBIT A-1 annexed hereto and made a part hereof (collectively, the "MK ENTITIES"), each having an address at 370 West Passaic Street, Rochelle Park, New Jersey 07662, the parties set forth on EXHIBIT A-2 annexed hereto and made a part hereof (collectively, the "PATRIOT CONTRIBUTORS"), the parties set forth on EXHIBIT A-3 annexed hereto and made a part hereof (collectively, the "PATRIOT ENTITIES"), and Patriot American Management and Leasing Corporation ("PAM"), each having an address at 3030 LBJ Freeway, Suite 1500, Dallas, Texas 75234; (the MK Contributors and the Patriot Contributors shall collectively be referred to as the "MACK CONTRIBUTORS" and each individually a "MACK CONTRIBUTOR"); (the MK Entities and the Patriot Entities shall collectively be referred to as the "MACK ENTITIES" and each individually a "MACK ENTITY"); (the Mack Contributors and the Mack Entities shall collectively be referred to as "MACK") and CALI REALTY, L.P., a Delaware limited partnership ("CRLP") and CALI REALTY CORPORATION, a Maryland corporation ("CALI"), each having an address at 11 Commerce Drive, Cranford, New Jersey 07016.


RECITALS


A. The Mack Contributors and their respective partners are, collectively, the owners of one-hundred (100%) percent of their respective partnership, limited liability company and/or other ownership interests in and to the Mack Entities (to the extent any of the Mack Entities are contributed to CRLP by assignment of partnership interest as is contemplated by Section 1.2 hereof, such Mack Entities are hereinafter referred to as the "CONTRIBUTED ENTITIES"). The Mack Entities own one-hundred (100%) percent of the respective properties and one-hundred (100%) percent of the respective ground lessees' interests in the ground leases set forth in SCHEDULES 1.1(A)(I) and 1.1(A)(II), respectively.


B. MACK owns, develops and manages various commercial properties located throughout New Jersey, New York, Texas, Arizona, Florida, Pennsylvania, Nebraska, Iowa and California. Cali, through CRLP and certain affiliated entities of CRLP, similarly owns, develops and manages various commercial properties located throughout New Jersey, New York, Pennsylvania and Connecticut.


C. MACK, CRLP and Cali have determined that it is in the best interests of the parties' long term strategic growth to combine their respective properties and related assets. In order to effectuate this combination, MACK has agreed (i) to contribute certain properties, ground leases and/or one-hundred (100%) percent of its partnership, limited liability company and/or other ownership interests in and to certain Mack Entities to CRLP or, at CRLP's direction,


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to an entity (1) owned by (a) CRLP, (b) Cali and/or (c) Cali's one-hundred (100%) percent owned subsidiaries and (2) which for federal income tax purposes is (i) taxed as a partnership or (ii) disregarded as an entity distinct from its owners (each a "SUBSIDIARY PARTNERSHIP" and collectively, the "SUBSIDIARY PARTNERSHIPS"), and (ii) to cause certain key executives of MACK to become part of the management of Cali. Such contribution shall be treated as a contribution by MACK to CRLP followed by a subsequent contribution from CRLP to such Subsidiary Partnership and any reference in this Agreement to a contribution to CRLP or a Subsidiary Partnership shall be so treated. Cali shall manage and operate the properties and/or the Mack Entities being contributed by MACK. The Mack Contributors shall provide, in the amounts and terms as the Mack Contributors shall determine, certain resources, management expertise, personnel and management facilities to assist in the management and operation of the properties to be contributed. The Mack Contributors have been granted certain rights with respect to appointing members of the Board of Directors of Cali, which is the sole general partner of CRLP. Cali has agreed to seek shareholder approval to amend its corporate charter to change its name to "Mack-Cali Realty Corporation" ("MACK-CALI"). Any reference herein to Mack-Cali shall be deemed to be the entity subsequent to the merger contemplated by this Agreement.


D. In consideration of MACK's contribution of certain properties, ground leases and certain ownership interests in the Mack Entities to designees of CRLP, Cali and CRLP collectively have agreed to exchange with MACK a combination of (i) cash, (ii) common operating partnership units of CRLP ("COMMON UNITS"), (iii) Series A preferred operating partnership units of CRLP ("SERIES A PREFERRED UNITS"), (iv) Series B preferred operating partnership units of CRLP ("SERIES B PREFERRED UNITS" and together with Series A Preferred Units, sometimes hereinafter referred to collectively as "PREFERRED UNITS") (Mack Common Units (as hereinafter defined) and Preferred Units, are sometimes referred to collectively as the "UNITS"), and (v) warrants to purchase Common Units. In addition, CRLP will accept certain exchange of the property and ownership interests subject to certain debt of the Mack Entities.


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


1. SUBJECT OF CONVEYANCE.


1.1 In accordance with the terms and conditions of this Agreement and subject to Cali and CRLP's performance and satisfaction of the conditions, covenants and obligations contained herein, the Mack Contributors and the Mack Entities agree that the assets set forth in paragraphs (a) through (h) of this Section 1.1 shall be directly or indirectly the subject of conveyance of this transaction and shall be contributed in accordance with Sections 1.2 and 1.3 hereof:


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(a) (i) those certain parcels of real property situate, lying and being in the States of New Jersey, New York, Texas, Arizona, Florida, Nebraska, Iowa and California and being more particularly described on SCHEDULE 1.1(A)(I), which sets forth the property addresses and blocks and lots, if applicable, for each parcel (the "LAND"); (ii) all right, title and interest of the lessees in and to the ground leases described on SCHEDULE 1.1(A)(II), which sets forth the names of each party to each of the ground leases, the dates thereof and any amendments thereto, as well as the name, state of organization and type of entity of each ground lessee (the "GROUND LEASES"); and (iii) all improvements located on the Land or subject to the Ground Leases (the "IMPROVEMENTS");


(b) all rights, privileges, grants and easements appurtenant to the Mack Entities' interest in the Land, Improvements and Ground Leases, including without limitation, all of the Mack Entities' right, title and interest in and to all land lying in the bed of any public street, road or alley, all mineral and water rights and all easements, licenses, covenants and rights-of-way or other appurtenances used in connection with the beneficial use and enjoyment of the Land, the Improvements and the Ground Leases (collectively, the "EASEMENT RIGHTS"); the Land, the Ground Leases, the Improvements and the Easement Rights shall hereinafter be collectively referred to as the "REAL PROPERTY";


(c) except as set forth on SCHEDULE 1.1(C), all personal property owned or licensed by the Mack Entities for use in connection with any of the Real Property, including without limitation fixtures, equipment, inventory and compu ...