Document:

Exhibit

Exhibit 10.6
PURCHASE AGREEMENT
(701 Malaga Place, Ontario, San Bernardino County, California  91761-8627)
THIS PURCHASE AGREEMENT (this “Agreement”) is made and entered into as of May 1, 2018 (the “Effective Date”), by and between TLF (INLAND EMPIRE DISTRIBUTION CENTER #3), LLC, a Delaware limited liability company (“Seller”), and BCI IV ACQUISITIONS LLC, a Delaware limited liability company (“Buyer”).
R E C I T A L S
Seller desires to sell, and Buyer desires to purchase, the “Property” (as hereinafter defined) on the terms and conditions hereinafter documented.
NOW, THEREFORE, in consideration of the mutual undertakings of the parties hereto, the receipt of which is hereby acknowledged, it is hereby agreed by the parties as follows:
1.Certain Defined Terms.  As used herein:
1.1    “Access Agreement” shall mean that certain letter agreement, dated April 5, 2018, by and between Seller and Buyer, as accepted by Buyer on April 6, 2018 (the “Access Acceptance Date”).
1.2    “Appurtenances” shall mean, as to the “Land” (as hereinafter defined), (a) all easements or licenses benefitting the Land; (b) all streets, alleys and rights of way, open or proposed, in front of or adjoining or servicing all or any part of the Land; (c) all strips and gores in front of or adjoining all or any part of the Land; (d) all development rights, air rights, wind rights, water, water rights, riparian rights, and water stock relating to the Land; and (e) all other rights, benefits, licenses, interests, privileges, easements, tenements and hereditaments appurtenant to the Land or used in connection with the beneficial use and enjoyment of the Land or in anywise appertaining to the Land.
1.3    “Closing Date” shall mean the date that is ten (10) days after the expiration of the Due Diligence Period, unless otherwise agreed in writing by the parties, as such date may be extended as expressly provided in this Agreement. 
1.4    “Closing Documents” shall mean any certificate, instrument or other document executed by a party or an affiliate of a party and delivered at or in connection with the “Closing” (as hereinafter defined) pursuant to this Agreement.
1.5    “Deposit” shall mean SIX HUNDRED TWENTY-FIVE THOUSAND AND No/100 DOLLARS ($625,000.00), together with all interest earned thereon.
1.6    “Due Diligence Materials” shall mean all documents, materials, data, analyses, reports, studies and other information pertaining to or concerning Seller, the Property or the purchase of the Property, to the extent the same have been delivered to or made available for review by Buyer or any of its agents, employees or representatives, including (a) all documents, materials, data, analyses, reports, studies and other information made available to Buyer or any of its agents, employees or representatives for review 

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within a reasonable period of time prior to the expiration of the Due Diligence Period electronically or through an on-line data website (or thereafter within a reasonable period of time prior to the expiration of the Due Diligence Period provided that after the initial delivery of documents and materials, Seller provides Buyer with written or e-mail notice of such additional documents and materials), and (b) all information disclosed in the real estate records of the applicable jurisdiction in which the Property is located, but in all cases excluding the “Excluded Materials” (as hereinafter defined) except to the extent any Excluded Materials are actually delivered or made available to Buyer or any of its agents, employees or representatives.
1.7    “Due Diligence Period” shall mean the period commencing on the Access Acceptance Date and ending at 5:00 p.m. Pacific time on Monday, May 7, 2018.
1.8    “Existing Lease” shall mean, collectively, that certain lease captioned “LEASE AGREEMENT,” dated January 15, 2015, that certain amendment captioned “FIRST AMENDMENT,” dated as of November 28, 2017, each by and between Seller and Tenant, and any amendments thereto entered into in accordance with this Agreement. 
1.9    “Governmental Entity” shall mean any United States national, federal, state, provincial, municipal or local government, governmental, regulatory or administrative authority, agency, instrumentality or commission or any court, tribunal, or judicial body.
1.10    “Hazardous Material” shall mean any hazardous, toxic or dangerous waste, substance or material, pollutant or contaminant, as defined for purposes of the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (42 U.S.C. Section 9601 et seq.), as amended, or the Resource Conservation and Recovery Act (42 U.S.C. Section 6901 et seq.), as amended, or any other Laws (collectively, “Environmental Laws”), or any substance which is toxic, explosive, corrosive, flammable, infectious, radioactive, carcinogenic, mutagenic, or otherwise hazardous, or any substance which contains gasoline, diesel fuel or other petroleum hydrocarbons, polychlorinated biphenyls (PCBs), or radon gas, urea formaldehyde, asbestos or lead.
1.11    “Improvements” shall mean the improvements, structures and fixtures located upon the Land.
1.12    “Intangible Property” shall mean, as to the Land, the Improvements and the Personal Property, (a) all Leases of any portion of the Land or Improvements, and (b) to the extent the following items are assignable without cost to Seller and relate solely to the Land, Improvements and Personal Property, (i) all “Service Agreements” (as hereinafter defined) that are to be assumed by Buyer at the Closing as provided in this Agreement, (ii) governmental permits, (iii) entitlements, (iv) licenses and approvals, (v) unexpired warranties and guarantees received in connection with any work or services performed with respect thereto, or equipment installed therein, (vi) tenant lists, (vii) advertising material, (viii) telephone exchange numbers and (ix) all trademarks and tradenames used exclusively in connection with the Property, but in all cases excluding the “Reserved Company Assets” (as hereinafter defined).

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1.13    “Internal Revenue Code” shall mean the Internal Revenue Code of 1986, as amended from time to time, and any corresponding provisions of succeeding law and any regulations, rulings and guidance issued by the Internal Revenue Service.
1.14    “Laws” shall mean any binding domestic or foreign laws, statutes, ordinances, rules, resolutions, regulations, codes or executive orders enacted, issued, adopted, promulgated, applied, or hereinafter imposed by any Governmental Entity, including, building, zoning and environmental protection, as to the use, occupancy, rental, management, ownership, subdivision, development, conversion or redevelopment of the Property.
1.15    “Leases” shall mean, collectively, (a) the Existing Lease and (b) any leases of space in the Property (including amendments thereto) entered into in accordance with this Agreement.
1.16    “Leasing Costs” shall mean, with respect to a particular Lease, all capital costs, expenses incurred for capital improvements, equipment, painting, decorating, partitioning and other items to satisfy any construction obligations of the landlord under such Lease (including any expenses incurred for architectural or engineering services in respect of the foregoing), “tenant allowances” in lieu of or as reimbursements for the foregoing items, payments made for purposes of satisfying or terminating the obligations of the tenant under such Lease to the landlord under another lease (i.e., lease buyout costs), costs of base building work, free rent and other similar inducements, relocation costs, temporary leasing costs, leasing commissions, brokerage commissions, design and other professional fees and costs, in each case, to the extent the landlord under such Lease is responsible for the payment of such cost or expense.
1.17    “Liens” shall mean any liens, mortgages, deeds of trust, pledges, security interests or other encumbrances securing any debt or monetary obligation.
1.18    “Personal Property” shall mean, as to the Land and Improvements, the tangible personal property owned by Seller located on, and used exclusively in connection with, the Land and Improvements including all building materials, supplies, hardware, carpeting and other inventory located on or in the Land or Improvements and maintained in connection with the ownership and operation thereof, but in all cases excluding computer software, personal property owned by Tenant and the Reserved Company Assets.
1.19    “Reserved Company Assets” shall mean, subject to the express proration provisions set forth in this Agreement, the following assets of Seller as of the Closing Date:  all (a) cash, (b) cash equivalents (including certificates of deposit), (c) deposits held by third parties (e.g., utility companies), (d) accounts receivable and any right or claim to a refund, reimbursement or other payment relating to a period or occurrence prior to the Closing, including any real estate tax refund (subject to the prorations hereinafter set forth) and any claims under a lease, warranty or guaranty arising from acts and occurrences prior to the Closing, (e) bank accounts, (f) claims or other rights against any present or prior partner, member, employee, agent, manager, officer or director of Seller or its direct or indirect partners, members, shareholders or affiliates, (g) any refund in connection with termination of Seller’s existing insurance policies, (h) all contracts between Seller and any law firm, accounting firm, property manager, leasing agent, broker, environmental consultants and other consultants and appraisers entered into prior to the Closing, (i) any proprietary or 

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confidential materials (including any materials relating to the background or financial condition of a present or prior direct or indirect partner or member of Seller), (j) the internal books and records of Seller relating, for example, to contributions and distributions prior to the Closing, (k) any software, (l) any trademarks, trade names, brand marks, brand names, trade dress or logos relating thereto, except for any tradename or logo unique to the Property (as opposed to a logo of Seller) expressly conveyed to Buyer in accordance with this Agreement, if any, (m) any development bonds, letters of credit or other collateral held by or posted with any Governmental Entity or other third party with respect to any improvement, subdivision or development obligations concerning the Property or any other real property, and (n) any other intangible property that is not used exclusively in connection with the Property.
1.20    “Tenant” shall mean G.P.R. Logistics LLC, a New Jersey limited liability company.
1.21    “Title Company” shall mean Chicago Title Insurance Company.
2.    Purchase and Sale.  Upon the terms and conditions hereinafter set forth, Seller shall sell to Buyer, and Buyer shall purchase from Seller, the Property.  As used herein, “Property” shall mean, collectively, all of Seller’s right, title and interest in (a) the land described in Schedule 1 (the “Land”), (b) the Appurtenances, (c) the Improvements, (d) the Personal Property, and (e) the Intangible Property.
3.    Purchase Price.  The purchase price (the “Purchase Price”) for the Property shall be THIRTY MILLION EIGHT HUNDRED FIFTY THOUSAND AND No/100 DOLLARS ($30,850,000.00).  The Purchase Price shall be paid to Seller by Buyer as follows:
3.1    Deposit.  Within two (2) business days following the Effective Date, Buyer shall deliver, by wire transfer of immediately available federal funds or cashier’s check drawn on a national bank reasonably satisfactory to Escrow Agent, the Deposit to Chicago Title Insurance Company (“Escrow Agent”), at its offices at 10 South LaSalle Street, Suite 3100, Chicago, Illinois 60603, Attention:  Ms. Cindy Malone (Telephone: (312) 223-3360; E-mail: cindy.malone@ctt.com).  If this Agreement has not been terminated (pursuant to Section 4.6.2 below or otherwise) prior to the expiration of the Due Diligence Period, then the Deposit shall become nonrefundable to Buyer except as otherwise expressly provided in this Agreement.  At all times during which the amounts so deposited hereunder shall be held by Escrow Agent, the same shall be held by Escrow Agent as a deposit against the Purchase Price in accordance with the terms and provisions of this Agreement.  While the Deposit or any portion thereof is being held by Escrow Agent, the Deposit shall be invested by Escrow Agent in the following investments (“Approved Investments”):  (a) money market funds, or (b) such other short-term investment option offered by Escrow Agent as may be reasonably agreed to by Seller and Buyer.  All interest earned on the Deposit shall be deemed part of the Deposit for all purposes under this Agreement.  At the Closing, the entire Deposit shall be applied to the Purchase Price.  Notwithstanding any provision to the contrary contained in this Agreement, the “Independent Consideration” [as hereinafter defined] shall be deemed independent consideration for the Due Diligence Period and any termination rights provided to Buyer in this Agreement and shall be non-refundable to Buyer and paid to Seller under all circumstances.
3.2    Closing Payment.  The Purchase Price, as adjusted by the application of the Deposit and by the prorations and credits specified herein, shall be paid, by wire transfer of immediately available 

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federal funds (through the escrow described in Section 5 below), as and when provided in Section 5.2.2 below and in the “Escrow Agreement” (as hereinafter defined).  The amount to be paid under this Section 3.2 is referred to herein as the “Closing Payment.”
4.    Conditions Precedent.  The obligation of Buyer to acquire the Property as contemplated by this Agreement is subject to satisfaction of all of the conditions precedent for the benefit of Buyer set forth in Sections 4.1, 4.2, 4.5.3, 4.7 and 4.8 herein, any of which may be waived prior to the Closing only in writing by Buyer on or before the applicable date specified for satisfaction of the applicable condition.  The obligation of Seller to transfer the Property as contemplated by this Agreement is subject to satisfaction of all of the conditions precedent for the benefit of Seller set forth in Sections 4.3 and 4.4 herein, any of which may be waived prior to the Closing only in writing by Seller on or before the applicable date specified for satisfaction of the applicable condition.  If any of such conditions is not fulfilled (or waived in writing) pursuant to the terms of this Agreement, then the party in whose favor such condition exists may terminate this Agreement and, in connection with any such termination made in accordance with this Section 4, Seller and Buyer shall be released from further obligation or liability hereunder (except for those obligations and liabilities that expressly survive such termination), and the Deposit (less the Independent Consideration which shall be paid to Seller) shall be disposed of in accordance with Section 9 below.  However, the Closing shall constitute a waiver of all conditions precedent (provided that the foregoing shall not preclude Buyer from bringing a claim for Seller’s breach of Seller’s representations and warranties in accordance with Section 7.3 hereof).
4.1    Performance by Seller.  The performance and observance, in all material respects, by Seller of all covenants and agreements of this Agreement to be performed or observed by Seller prior to or on the Closing Date shall be a condition precedent to Buyer’s obligation to purchase the Property.
4.2    Representations and Warranties of Seller.  The obligation of Buyer to close the transaction contemplated by this Agreement is subject to the truth, in all material respects, of the representations and warranties of Seller set forth in this Agreement, as of the Closing Date, as though made on and as of the Closing Date (except for representations and warranties made as of a specified date, the accuracy of which shall be determined as of that specified date), excluding, however, any matter or change (a) expressly permitted or contemplated by the terms of this Agreement or (b) contained in any of the Due Diligence Materials or actually known to Buyer prior to the expiration of the Due Diligence Period (as such knowledge is defined in Section 7.4.2 herein).  Without limitation on the foregoing, in the event that the closing certificate (the “Seller Closing Certificate”) in the form attached hereto as Exhibit B to be delivered by Seller at the Closing shall disclose any material adverse changes in the representations and warranties of Seller under this Agreement that are not otherwise permitted or contemplated by the terms of this Agreement, contained in any of the Due Diligence Materials or actually known to Buyer prior to the expiration of the Due Diligence Period (as such knowledge is defined in Section 7.4.2 herein), then Buyer shall have the right to terminate this Agreement by written notice delivered to Seller prior to the Closing and, in connection with any such termination, Buyer shall be entitled to a return of the Deposit (less the Independent Consideration, which shall be paid to Seller), and Seller and Buyer shall be released from further obligation or liability hereunder (except for those obligations and liabilities which expressly survive such termination).

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4.3    Performance by Buyer.  The performance and observance, in all material respects, by Buyer of all covenants and agreements of this Agreement to be performed or observed by Buyer prior to or on the Closing Date shall be a condition precedent to Seller’s obligation to sell the Property.
4.4    Representations and Warranties of Buyer.  The obligation of Seller to close the transaction contemplated by this Agreement is subject to the truth, in all material respects, of the representations and warranties of Buyer set forth in this Agreement, as of the Closing Date, as though made on and as of the Closing Date (except for representations and warranties made as of a specified date, the accuracy of which shall be determined as of that specified date).  Without limitation on the foregoing, in the event that Buyer’s closing certificate (the “Buyer Closing Certificate”) in the form attached hereto as Exhibit C shall disclose any material adverse changes in the representations and warranties of Buyer under this Agreement, then Seller shall have the right to terminate this Agreement by written notice to Buyer and, in connection with any such termination, Seller and Buyer shall be released from further obligation or liability hereunder (except for those obligations and liabilities which expressly survive such termination). 
4.5    Title Matters.
4.5.1    Title Report; Survey.  Prior to the Effective Date, Seller delivered to Buyer (1) that certain title commitment, NCS Number: 21800205, LO Number: 00085497-994-LT2-KD, issued by Title Company, with an effective date of February 2, 2018 (the “Preliminary Title Report”) covering the Property, and (2) a copy of that certain survey (the “Survey”) entitled “ALTA/NPS LAND TITLE SURVEY,” prepared by Jayne E. Leavitt of Bock & Clark, B&C Project No. 201800578, 001.  Buyer shall notify Seller in writing (the “Title Notice”) prior to 5:00 p.m. Pacific time on the date that is five (5) business days prior to the expiration of the Due Diligence Period (the period beginning on the Access Acceptance Date and ending at such time is referred to herein as the “Title Review Period”) as to which matters, if any, within the Preliminary Title Report and which matters shown on the Survey (or any update thereof) are not acceptable to Buyer in Buyer’s sole and absolute discretion (individually, a “Disapproved Title Matter”).  Any matter within the Preliminary Title Report, the Survey, and any matter that would be disclosed by a current, accurate survey of the Land and the Improvements that Buyer fails to so disapprove in a Title Notice delivered prior to the expiration of the Title Review Period shall be conclusively deemed to have been approved by Buyer.  If Buyer timely delivers a Title Notice indicating a Disapproved Title Matter, then Seller shall have three (3) business days after receipt of such Title Notice to elect to notify Buyer in writing (a “Title Response Notice”) that Seller either (a) will in good faith attempt to remove such Disapproved Title Matter from title to the Property on or before the Closing, or (b) elects not to cause such Disapproved Title Matter to be removed from title to the Property.  If Seller fails to deliver a Title Response Notice as to a particular Disapproved Title Matter within such three (3) business day period, then Seller shall be deemed to have made the election in clause (b) above as to such Disapproved Title Matter.  Prior to the expiration of the Due Diligence Period, the procurement by Seller of a written commitment from Title Company to issue the “Owner’s Policy” (as hereinafter defined), or an endorsement thereto insuring Buyer against any Disapproved Title Matter at Closing, shall be deemed the removal of such Disapproved Title Matter from title to the Property, provided that such endorsement shall be satisfactory to Buyer in its sole discretion, and shall be issued at Seller’s sole cost and expense.  If Seller makes (or is deemed to have made) the election in clause (b) above as to any Disapproved Title Matter, then Buyer shall have until the expiration of the Due Diligence Period, within 

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which to notify Seller in writing that Buyer elects to either (x) nevertheless proceed with the purchase and take title to the Property subject to such Disapproved Title Matter, or (y) terminate this Agreement.  If Buyer makes the election set forth in clause (y) above, then this Agreement shall immediately terminate, Buyer shall be entitled to a return of the Deposit (less the Independent Consideration, which shall be paid to Seller), and Seller and Buyer shall have no further rights or obligations hereunder, except for the provisions hereof that expressly survive termination of this Agreement.  If Buyer fails to notify Seller in writing of its election prior to the expiration of the Due Diligence Period, then Buyer shall be deemed to have made the election set forth in clause (x) above.  
4.5.2    Additional Title Matters.  Approval by Buyer of any additional title exceptions, defects, encumbrances or other title matters first disclosed in writing after the end of the Title Review Period (“Additional Title Matters”) shall be a condition precedent to Buyer’s obligations to purchase the Property (Buyer hereby agreeing that its approval of such Additional Title Matters shall be subject to Buyer’s approval in its sole and absolute discretion).  Unless Buyer gives written notice (“Title Disapproval Notice”) that it disapproves any Additional Title Matters, stating the Additional Title Matters so disapproved, before the sooner to occur of the Closing or five (5) days after receipt of written notice of such Additional Title Matters, Buyer shall be deemed to have approved such Additional Title Matters.  Notwithstanding the foregoing to the contrary, if Buyer receives notice of an Additional Title Matter on or after the date which is two (2) business days prior to the Closing Date, then either party shall have the option to extend the Closing for three (3) additional business days to allow the parties sufficient time to review such Additional Title Matter provided that the party requesting such extension of the Closing delivers to the other party written notice of such extension within one (1) business day of receipt of the Additional Title Matter.  Seller shall have until the Closing within which to remove the disapproved Additional Title Matters set forth therein from title or obtain from Title Company a commitment to issue an endorsement affirmatively insuring against such items in a form acceptable to Buyer in Buyer’s commercially reasonable discretion, at no cost or expense to Buyer (Seller having the right but not the obligation to do so).  The procurement by Seller of a written commitment from Title Company to issue the Owner’s Policy, or an endorsement thereto insuring Buyer against the disapproved Additional Title Matter at Closing, shall be deemed the removal of such disapproved Additional Title Matter from title to the Property, provided that such endorsement shall be to Buyer’s commercially reasonable satisfaction, and shall be issued at Seller’s sole cost and expense.  In the event Seller determines at any time that it is unable or unwilling to remove any one or more of such disapproved Additional Title Matters, Seller shall give written notice to Buyer to such effect; in such event, Buyer may, at its option, terminate this Agreement upon written notice to Seller but only if given prior to the sooner to occur of the Closing or five (5) days after Buyer receives Seller’s notice, in which case this Agreement shall immediately terminate, the Deposit (less the Independent Consideration, which shall be paid to Seller), shall be returned to Buyer, and Seller and Buyer shall have no further rights or obligations hereunder, except for the provisions hereof that expressly survive termination of this Agreement.  If Buyer fails to give such termination notice by such date, Buyer shall be deemed to have waived its objection to, and to have approved, the matters set forth in Seller’s notice.
4.5.3    Exceptions to Title.  Buyer’s obligation to purchase the Property is subject to the condition precedent that, at the Closing, Title Company shall be willing to issue the Owner’s Policy 

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effective upon the Closing.  Buyer shall be obligated to accept title to the Property, subject to the following exceptions to title (the “Permitted Exceptions”):
(a)    Real estate taxes and assessments not yet delinquent;
(b)    The printed exceptions, if any, which appear in a 2006 ALTA extended coverage form Owner’s Policy of Title Insurance issued by Title Company in the State of California;
(c)    The Leases; and
(d)    Such other exceptions to title or survey exceptions as may be approved or deemed approved by Buyer pursuant to the above provisions of this Section 4.5 or otherwise expressly permitted under this Agreement, or any exceptions resulting from the actions (or inactions) of Buyer or its agents or representatives.
Conclusive evidence of the availability of such title shall be the willingness of Title Company to issue to Buyer on the Closing Date a 2006 ALTA extended form Owner’s Policy of Title Insurance issued by Title Company in the State of California (the “Owner’s Policy”), in the face amount of the Purchase Price, which policy shall show (i) title to the Land and Improvements to be vested of record in Buyer, and (ii) the Permitted Exceptions to be the only exceptions to title; provided, however, if Buyer fails to fulfill Title Company’s conditions required for issuance of such Owner’s Policy, including but not limited to delivery of a current ALTA survey, then the condition precedent described in this Section 4.5.3 shall be deemed satisfied if Title Company shall be willing to issue a ALTA standard coverage form Owner’s Policy of Title Insurance upon or following the Closing.  In connection with obtaining coverage over survey matters under any ALTA form of Owner’s Policy, Buyer shall deliver to Title Company prior to the Closing Date a current ALTA survey certified by a licensed surveyor in the State of California sufficient to permit or cause Title Company to insure against survey matters at the Closing.  Notwithstanding any provision to the contrary contained in this Agreement or any of the Closing Documents, any or all of the Permitted Exceptions may be omitted by Seller in the “Deed” (as hereinafter defined) without giving rise to any liability of Seller, irrespective of any covenant or warranty of Seller that may be contained or implied in the Deed (which provisions of this sentence shall survive the Closing and not be merged therein).  Notwithstanding any provision to the contrary contained in this Agreement, Seller agrees that it will remove all Liens (other than non-delinquent taxes) expressly caused or permitted by Seller, or insure or endorse over any other Liens (other than non-delinquent taxes); provided however, any insurance or endorsement over a Lien shall be to Buyer’s commercially reasonable satisfaction if Seller did not expressly cause or permit such Lien, and to Buyer’s sole satisfaction if Seller expressly caused or permitted such Lien.
4.5.4    Endorsements to Owner’s Policy.  It is understood that Buyer may request a number of endorsements to the Owner’s Policy.  Buyer shall satisfy itself prior to the expiration of the Title Review Period whether Title Company will be willing to issue such endorsements at the Closing and the issuance of such endorsements shall not be a condition to the Closing.
4.6    Due Diligence Reviews.  Except for title matters and matters shown on the Survey (which shall be governed by the provisions of Section 4.5 above), and subject to the provisions hereinafter 

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set forth, Buyer shall have until the expiration of the Due Diligence Period within which to perform and complete all of Buyer’s due diligence examinations, reviews and inspections of all matters pertaining to the purchase of the Property, including all engineering and environmental reports and all leases, license agreements and service contracts, sewer/water conditions, utilities service information, zoning information, access information, assessments and city fees, developmental conditions and approvals, operating expenses and legal, physical, environmental and compliance matters and conditions regarding the Property (the foregoing being collectively called the “Property Information”).  Subject to Section 4.6.1 below, during the Due Diligence Period and prior to the Closing, Seller shall provide Buyer and its actual and potential investors, lenders and assignees, and their respective representatives, attorneys, accountants, consultants, surveyors, title companies, agents, employees, contractors, appraisers, architects and engineers, with reasonable access to the Property (subject to the rights of tenants under the Leases) upon reasonable advance notice and shall also make available for review and copying (at Buyer’s expense) copies of all documents, materials and other information relating to the Property Information that Buyer may reasonably request and that, to Seller’s knowledge, are in the possession of Seller or its agents which Seller shall make available to Buyer within three (3) business days following the Effective Date, or three (3) business days following Seller’s receipt of request from Buyer if such request is not made prior to the Effective Date.  In no event, however, shall Seller be obligated to make available (or cause to be made available) any proprietary or confidential documents including reports or studies that have been superseded by subsequent reports or studies, or any of the following confidential and proprietary materials (collectively, the “Excluded Materials”):  (a) information contained in financial analyses or projections (including Seller’s budgets, valuations, cost-basis information and capital account information); (b) material that is subject to attorney-client privilege or that is attorney work product; (c) appraisal reports or letters; (d) organizational, financial and other documents relating to Seller or its affiliates (other than any evidence of due authorization and organization required under this Agreement); (e) material that Seller is legally required not to disclose other than by reason of legal requirements voluntarily assumed by Seller after the Effective Date; (f) preliminary or draft reports or studies, or reports or studies that have been superseded by final reports or studies; (g) letters of intent, purchase agreements, loan documents or other documents, instruments or agreements evidencing or relating to any prior financing or attempted sale of the Property or any portion thereof; or (h) the “Excluded Contracts” (as hereinafter defined).  In no event shall any right of Buyer to access or inspect the Property or to conduct further reviews and analyses after the expiration of the Due Diligence Period, as set forth herein, give rise to any due diligence approval or termination right in favor of Buyer under this Agreement.
4.6.1    Review Standards.  Buyer shall at all times conduct its due diligence reviews, inspections and examinations (and shall cause its consultants’ and other third parties’ reviews, inspections and examinations performed for or at the request of Buyer to be conducted) in a manner so as to not cause liability, damage, lien, loss, cost or expense to Seller or the Property and so as to not unreasonably interfere with or disturb any tenant or Seller’s operation of the Property.  Buyer will indemnify, defend, and hold Seller, its members, partners, employees, manager, agents, officers, directors, shareholders, fiduciaries, attorneys, licensees, contractors, brokers, invitees, tenants and the Property harmless from and against any such liability, damage, lien, loss, cost or expense (except to the extent arising from the mere discovery of any pre-existing condition at the Property or the gross negligence or willful misconduct of Seller).  Prior to entry upon the Property, Buyer shall provide Seller with copies of certificates of insurance in accordance with the requirements set forth in the Access Agreement that shall be maintained by Buyer and each consultant 

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which Buyer will have present on the Property in connection with its investigations upon the Property.  Without limitation on the foregoing, in no event shall Buyer:  (a) conduct any intrusive physical testing (environmental, structural or otherwise) at the Property (such as soil borings, water samplings or the like) or take physical samples from the Property without Seller’s express, prior written consent, which consent, as to such intrusive physical testing or sampling, may be given or withheld in Seller’s sole discretion (and Buyer shall in all events promptly restore the Property to substantially the same condition existing immediately prior to such entry (provided, however, Buyer shall have no obligation to repair any damage caused by the gross negligence or willful misconduct of Seller or to restore any pre-existing latent defect or condition unless Buyer exacerbated such pre-existing latent defect or condition in violation of this Agreement)) and which consent to intrusive physical testing or sampling, may be further conditioned upon, among other things, Seller’s approval of the following: (i) the insurance coverage of the contractor who will be conducting such testing or sampling, (ii) the scope and nature of the testing or sampling to be performed by such contractor, and (iii) a written confidentiality agreement by such contractor in form reasonably satisfactory to Seller; (b) contact any consultant or other professional engaged by Seller or Tenant (or its representatives) without Seller’s express, prior written consent (which consent shall not be unreasonably withheld); provided, however, Seller expressly authorizes Buyer to contact and consult with Seller’s seismic consultant, Telesis Engineers, Inc., who is preparing a seismic report regarding the Property (the “Seller’s Seismic Report”); or (c) contact any Governmental Entity having jurisdiction over the Property, other than ordinary contact normally associated with routine due diligence examinations that does not involve any discussions with governmental officials or applications of any kind, with the express understanding that Buyer shall not undertake any discussions or communications with any governmental officials without (i) Seller’s express, prior written consent, which consent may be given or withheld in Seller’s sole and absolute discretion for any reason or no reason, and (ii) participation by a representative of Seller.  Without limitation of the foregoing, Buyer shall not be permitted to contact Tenant of the Property without giving Seller (i) advance written notice, and (ii) the opportunity to have a representative of Seller participate in any such communications.  Seller shall have the right, at its option, to cause a representative of Seller to be present at all inspections, reviews and examinations conducted hereunder.  Buyer shall schedule any entry (by it or its designees) onto the Property in advance with Seller, upon not less than twenty-four (24) hours’ prior notice (written or e-mail) to Seller or its authorized representative.  Buyer shall keep the Property free and clear of all mechanics’, materialmen’s and other liens resulting from the due diligence examinations or any of its other work under this Agreement.  Buyer shall remove or bond over any liens within ten (10) days after Buyer becomes aware of the same.  Upon the completion of any inspection, review or examination, Buyer shall promptly restore the Property to substantially the same condition existing immediately prior to Buyer’s conducting such inspection, review or examination, at Buyer’s sole cost and expense; provided, however, Buyer shall have no obligation to repair any damage caused by the gross negligence or willful misconduct of Seller or to restore any pre-existing latent defect or condition unless Buyer exacerbated such pre-existing latent defect or condition in violation of this Agreement.  In the event of any termination hereunder (other than by reason of Seller’s default), Buyer shall return all documents and other materials furnished by Seller hereunder and at Seller’s written request, then Buyer shall promptly deliver to Seller true, accurate and complete copies of any draft or final written reports relating to the Property prepared for or on behalf of Buyer by any third party without any representation or warranty as to the accuracy or completeness of such documents, all at Buyer’s sole cost and expense.  Notwithstanding anything to the contrary herein, Buyer shall not be required to provide, copy or make 

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available to Seller any internal memoranda, appraisals and valuation reports and similar information or information covered by the attorney-client privilege.  The Access Agreement is hereby incorporated by this reference and shall apply to this Agreement; provided, however, to the extent that the terms and conditions of the Access Agreement conflicts with this Agreement, the terms and conditions of this Agreement shall control.  Buyer shall be responsible to Seller for any breaches of the Access Agreement by any person or entity to whom information or access to the Property was given by or through Buyer as though the breach were committed by Buyer itself.  This Section 4.6.1 shall survive the Closing or any termination of this Agreement.
4.6.2    Termination Right.  Prior to the expiration of the Due Diligence Period, Buyer may in its sole discretion, for any reason or no reason, terminate this Agreement by written notice to Seller (such notice being herein called the “Termination Notice”), whereupon this Agreement, and the obligations of the parties hereunder, shall terminate (and no party hereto shall have any further obligation in connection herewith except under those provisions that expressly survive a termination of this Agreement), One Hundred and No/100 Dollars ($100.00) of the Deposit shall be paid to Seller as independent consideration for this Agreement (the “Independent Consideration”), and the balance of the Deposit shall be delivered to Buyer.  In the event that Buyer shall fail to have delivered the Termination Notice to Seller before the expiration of the Due Diligence Period, Buyer shall have no further right to terminate this Agreement pursuant to this Section 4.6.  
4.7    Tenant Estoppel Certificates.  It shall be a condition precedent to Buyer’s obligation to acquire the Property hereunder that Seller obtain and deliver an estoppel certificate from Tenant (the “Tenant Estoppel Certificate”), in the form required under Section 4.7.1 below.  If such condition is not satisfied (or waived by Buyer), on or before 12:00 p.m. Pacific time on the date which is two (2) business days prior to the Closing Date (the “Estoppel Condition Deadline Date”), then (a) either Buyer or Seller shall each have the right to extend the Estoppel Condition Deadline Date for up to fifteen (15) days after the scheduled Closing Date (the “Extended Estoppel Condition Deadline Date”) by providing written notice thereof to the other party on or before 3:00 p.m. Pacific time on the Estoppel Condition Deadline Date, in order to allow Seller sufficient time to satisfy this condition precedent to the Closing, and upon the timely satisfaction (or waiver by Buyer) of such condition, the Closing shall occur two (2) business days after satisfaction of the condition set forth in this Section 4.7 (the “Extended Closing Date”), or (b) if neither Buyer nor Seller has timely elected to extend the Estoppel Condition Deadline Date and the Closing Date as provided in (a) above, then Buyer shall have the right to terminate this Agreement by written notice given prior to 5:00 p.m. Pacific time on the Estoppel Condition Deadline Date, in which case this Agreement shall terminate and Buyer shall be entitled to a refund of the Deposit (less the Independent Consideration, which shall be paid to Seller), and no party hereto shall have any further obligation under this Agreement except under those provisions that expressly survive a termination of this Agreement.
4.7.1    The Tenant Estoppel Certificate shall be substantially in (a) the form required under Tenant’s Lease (including specific limitations set forth in Tenant’s Lease which limit the scope of the information required to be provided by Tenant in any Tenant Estoppel Certificate to be provided by Tenant), or (b) the form estoppel certificate attached hereto as Exhibit D, modified, as applicable, to comply with any provisions in Tenant’s Lease that pertain to estoppel certificates; provided, however, that the form 

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may also be the standard form generally used by Tenant so long as such standard form complies with Tenant’s Lease; provided further, however, if Seller receives from Tenant such standard form prior to Tenant’s execution thereof, then Buyer shall have the right to reasonably approve of such form.  In addition, any provisions of the estoppel certificate (or comparable certificate or statement) regarding defaults, defenses, disputes, environmental matters, claims, offsets, credits, abatements, concessions and recaptures against rent and other charges may be limited to the actual knowledge of Tenant.  Buyer’s failure to object to the Tenant Estoppel Certificate (or any information or provision therein) by written notice to Seller given within three (3) days after Buyer’s receipt thereof (but not later than the Closing Date) shall be deemed to constitute Buyer’s acceptance and approval thereof.  Notwithstanding anything to the contrary contained in this Agreement, Buyer may not object to (A) any matter adverse to the Property, in any material respect, (B) any objectionable information or provision contained in the Tenant Estoppel Certificate or (C) any uncompleted obligations or defaults by landlord or tenant unless such obligations or defaults will be completed prior to Closing or credited to Buyer at Closing, provided that in all instances described in clauses (A), (B) or (C), such matter, information or provision was (i) set forth in the Existing Lease, (ii) disclosed in the Due Diligence Materials, or (iii) actually known to Buyer prior to the expiration of the Due Diligence Period (as such knowledge is defined in Section 7.4.2 herein). 
4.7.2    Seller shall utilize commercially reasonable efforts to obtain the Tenant Estoppel Certificate from the Tenant.  As used in this Agreement, “commercially reasonable efforts” shall not include any obligation to institute or threaten legal proceedings, to declare or threaten to declare any person in default, to incur any liabilities, to expend any monies or to cause any other person to do any of the same.  
4.8    Tenant Lease.  It shall be a condition precedent to Buyer’s obligation to acquire the Property hereunder that Tenant shall not have terminated, or given written notice of its intent, to terminate the Existing Lease pursuant to the terms of the Existing Lease or otherwise.  In addition, Tenant shall not have vacated the Property, abandoned the Property or filed for bankruptcy or be subject to an involuntary bankruptcy proceeding.  
5.    Closing Procedure.  The closing (the “Closing”) of the sale and purchase herein provided shall occur on the Closing Date.
5.1    Escrow.  The Closing shall be accomplished pursuant to escrow instructions (the “Escrow Agreement”) among Buyer, Seller and Escrow Agent in the form of Exhibit E, which Buyer and Seller shall execute concurrently herewith, and any supplemental escrow instructions provided by Buyer or Seller as may be permitted by the terms of the Escrow Agreement (so long as the material terms of this Agreement shall control in the event of any inconsistencies).
5.2    Closing Deliveries.  The parties shall deliver to Escrow Agent the following:
5.2.1    Seller Deliveries.  At least one (1) business day prior to the Closing Date, Seller shall deliver (or cause to be delivered) to Escrow Agent the following:

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(a)    A duly executed and acknowledged original grant deed (the “Deed”) in the form of Exhibit F for the Property; 
(b)    A duly executed original bill of sale, assignment and assumption agreement (a “Bill of Sale, Assignment and Assumption”) in the form of Exhibit G for the Property;
(c)    A duly executed original certificate of “non-foreign” status in the form of Exhibit H and a duly executed original California state Form 593-C certificate sufficient to exempt Seller from any California state withholding requirement with respect to the sale contemplated by this Agreement;
(d)    Unless Buyer and Seller elect to deliver the same outside of escrow, a duly executed notice to Tenant (the “Tenant Notice”), in the form of Exhibit I, which notice Buyer shall, at Buyer’s sole cost and expense, either mail to Tenant by certified mail, return receipt requested or hand-deliver to Tenant (and Buyer shall provide proof of delivery thereof to Seller promptly following the Closing);
(e)    Unless Buyer and Seller elect to deliver the same outside of escrow, duly executed notices to each of the vendors under any Service Agreement to be assumed by Buyer at the Closing as provided in this Agreement (“Vendor Notices”), such Vendor Notices to be in such form(s) as are reasonably required by Seller, which notices Buyer shall, at Buyer’s sole cost and expense, mail to each such vendor by certified mail, return receipt requested (and Buyer shall provide proof of delivery thereof to Seller promptly following the Closing);
(f)    A Seller Closing Certificate duly executed by Seller;
(g)    Evidence reasonably satisfactory to Escrow Agent regarding the due organization of Seller and the due authorization and execution by Seller of this Agreement and the documents required to be delivered hereunder;
(h)    To the extent they do not constitute Reserved Company Assets and are then in the possession of Seller (or its agents or employees) and have not theretofore been delivered to Buyer:  (i) any plans and specifications for the Improvements for the Property; (ii) all unexpired warranties and guarantees that Seller has received in connection with any work or services performed with respect to, or equipment installed in, the Property; (iii) all keys and other access control devices for the Property; (iv) originals of all Leases for the Property and all correspondence to or from Tenant; (v) originals of all Service Agreements for the Property that will remain in effect after the Closing; and (vi) all correspondence relating to the ongoing operations and maintenance of the Property, including tenant leasing information, leasing files and other material documents relating to the operation or maintenance of the Property in Seller’s possession (which materials under this clause  may be either delivered at the Closing or as otherwise reasonably agreed by the parties);
(i)    If required by Title Company, an Owner’s Certificate as to Debts, Liens and Parties In Possession substantially in the form of Exhibit J (“Title Affidavit”) and a Gap 

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Certificate substantially in the form of Exhibit K (“Gap Certificate”), each to facilitate the issuance of any title insurance sought by Buyer in connection with the transactions contemplated hereby, but in no event shall Seller be obligated to provide any additional certificate, affidavit or indemnity in connection with such title insurance; and
(j)    Such additional documents as may be reasonably required by Buyer and Escrow Agent in order to consummate the transactions hereunder (provided the same do not increase in any material respect the costs to, or liability or obligations of, Seller in a manner not otherwise provided for herein).
5.2.2    Buyer Deliveries.  At least one (1) business day prior to the Closing Date (except as to the Closing Payment, which shall be delivered no later than 10:00 a.m. Pacific time on the Closing Date), Buyer shall deliver to Escrow Agent the following:
(a)    The Closing Payment by wire transfer of immediately available federal funds;
(b)    A duly executed original Bill of Sale, Assignment and Assumption;
(c)    Unless Buyer and Seller elect to deliver the same outside of escrow, a duly executed Tenant Notice;
(d)    Unless Buyer and Seller elect to deliver the same outside of escrow, duly executed Vendor Notices;
(e)    A duly executed preliminary change of ownership report for the Property;
(f)    The duly executed Buyer Closing Certificate;
(g)    Evidence reasonably satisfactory to Escrow Agent regarding the due organization of Buyer and the due authorization and execution by Buyer of this Agreement and the documents required to be delivered hereunder; and
(h)    Such additional documents as may be reasonably required by Seller and Escrow Agent in order to consummate the transactions hereunder (provided the same do not increase in any material respect the costs to, or liability or obligations of, Buyer in a manner not otherwise provided for herein).
5.2.3    Mutual Deliveries.  On the Closing Date, Buyer and Seller shall mutually execute and deliver (or cause to be executed and delivered) to Escrow Agent, the following:
(a)    A closing statement (the “Closing Statement”) reflecting the Purchase Price, and the adjustments and prorations required hereunder and the allocation of income and expenses required hereby; and

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(b)    Such transfer tax forms, if any, as are required by state and local authorities.
5.3    Closing Costs.  
5.3.1    Seller Closing Costs.  Seller shall pay or cause to be paid (a) all county transfer taxes payable in connection with the sale contemplated herein, (b) the portion of the title insurance premium for the Owner’s Policy for standard ALTA coverage in the amount of the Purchase Price for the Property (including any fees for the title search), (c) one-half (1⁄2) of all escrow charges and (d) the recording fees and charges for the release of any recorded document that Seller is obligated to release of record pursuant to this Agreement, or that Seller has expressly agreed to remove, bond, insure or endorse over pursuant to Section 4.5 hereof.
5.3.2    Buyer Closing Costs.  Buyer shall pay (a) the amount by which the title insurance premium for the Owner’s Policy and all endorsements exceeds the cost of standard ALTA coverage, (b) one-half (1⁄2) of all escrow charges, (c) all costs and expenses of the Survey and any updates thereto, (d) all fees, costs or expenses in connection with Buyer’s due diligence reviews and analyses hereunder and (e) all recording fees and charges charged for the recording of the Deed and in connection with any loan obtained by Buyer.
5.3.3    Other Closing Costs.  Any other closing costs shall be allocated in accordance with local custom.  Seller and Buyer shall pay their respective shares of prorations as hereinafter provided.  Except as otherwise expressly provided in this Agreement, each party shall pay the fees of its own attorneys, accountants and other professionals.
5.4    Prorations.  
5.4.1    Items to be Prorated.  The initial prorations and payments provided for in this Section 5.4 shall be made at the Closing on the basis of the Closing Statement, which shall be prepared by Title Company, as approved by Seller and submitted to Buyer for its review and approval at least two (2) Business days prior to the Closing.  The following shall be prorated between Seller and Buyer as of the Closing Date (on the basis of the actual number of days elapsed over the applicable period), with Buyer being deemed to be the owner of the Property during the entire day on the Closing Date, and entitled to receive all operating income of the Property, and obligated to pay all operating expenses of the Property, with respect to the Closing Date:
(a)    All non-delinquent real estate and personal property taxes and assessments on the Property for the current tax year.  Seller shall be responsible for the payment of any real estate and personal property taxes that are delinquent before the Closing or that are attributable to the period  prior to the Closing.  For example, if the Closing Date is May 27, 2018, then Seller shall be responsible for the real estate and personal property taxes and assessments on the Property for the 2017-2018 tax year through and including May 26, 2018 regardless of when said taxes are due and payable.  In no event shall Seller be charged with or be responsible for any increase in the taxes on the Property resulting from the sale of the Property contemplated by this Agreement, any 

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change in use of the Property on or after the Closing Date, or from any improvements made or leases entered into on or after the Closing Date.  If any assessments on the Property are payable in installments, then the installment allocable to the current period shall be prorated (with Buyer being allocated the obligation to pay any installments due after the Closing Date).
(b)    All fixed and additional rentals under the Leases, security deposits (except as hereinafter provided) and other tenant charges.  Seller shall deliver or provide a credit in an amount equal to all prepaid rentals for periods after the Closing Date and all refundable cash security deposits (to the extent the foregoing were made by tenants under the Leases and are not applied or forfeited prior to the Closing to Buyer on the Closing Date; it being agreed, however, that Seller shall notify Buyer in writing if it applies any security deposit prior to the Closing, and from and after the expiration of the Due Diligence Period, Seller shall not apply any security deposit without obtaining Buyer’s prior consent which consent Buyer may withhold in Buyer’s sole discretion.  Rents that are delinquent (or payable but unpaid) as of the Closing Date shall not be prorated on the Closing Date.  Rather, Buyer shall cause any such delinquent rent (or payable but unpaid rent) for the period prior to the Closing to be remitted to Seller if, as and when collected.  At the Closing, Seller shall deliver to Buyer a schedule of all such delinquent or payable but unpaid rent.  Additionally, there shall be no proration of any rent that a tenant under a Lease delivers to either Buyer or Seller and that such tenant has identified, at the time of such delivery, as constituting payment or rent due for a month or other period prior to the month in which the Closing occurs (“Identified Pre-Closing Rent”).  If Buyer receives any such Identified Pre-Closing Rent, Buyer shall cause such Identified Pre-Closing Rent to be remitted to Seller if, as, and when collected.  Until the date that is six (6) months after the Closing, Buyer shall include such delinquencies (or unpaid amounts) in its normal billing and shall pursue the collection thereof in good faith after the Closing Date (but Buyer shall not be required to litigate or declare a default under any Lease or pursue any other action or remedy in connection with the recovery from tenants of such delinquencies or other unpaid amounts).  To the extent that Buyer or Seller receives payment of rents (or other income of any kinds whatsoever in connection with other Tenant charges) on or after the Closing Date other than Identified Pre-Closing Rent, such payments shall be applied first toward the rent (or other tenant charge) for the month in which the Closing occurs then to the rent (or other tenant charge) owed to Buyer in connection with the applicable Lease or other document for which such payments are received, and then to any delinquent rents (or other tenant charges) owed to Seller, with a party’s share thereof being promptly delivered to such party; provided, however, that any year-end or similar reconciliation payment shall be allocated as hereinafter provided.  Buyer may not waive any delinquent (or unpaid) rents or modify a Lease so as to reduce or otherwise affect amounts owed thereunder for any period in which Seller is entitled to receive a share of charges or amounts without first obtaining Seller’s written consent.  Seller hereby reserves the right to pursue any remedy for damages against any tenant owing delinquent rents and any other amounts to Seller (but following the Closing shall not be entitled to terminate any Lease or any tenant’s right to possession), provided that, Seller shall not exercise any such remedy for a period of six (6) months after the Closing except in connection with the recovery from tenants of taxes or assessments relating to any period prior to the Closing Date (the “Pre-Closing Tax Collection Remedies”).  Buyer shall reasonably cooperate with Seller, at no material out-of-pocket cost to Buyer, in any collection efforts hereunder, including Seller’s Pre-Closing Tax Collection Remedies, but shall not be required 

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to litigate or declare a default under any Lease.  With respect to delinquent or other uncollected rents and any other amounts or other rights of any kind regarding tenants who are no longer tenants of the Property as of the Closing Date, Seller shall retain all of the rights relating thereto.
(c)    Payments required to be paid by tenants under Leases for such tenants’ shares of property taxes and assessments, insurance, common area maintenance and other expenses of the Property are collectively referred to herein as “Reimbursable Tenant Expenses.”  Reimbursable Tenant Expenses shall be determined in accordance with the Leases, including any Lease provisions that provide for the adjustment of Reimbursable Tenant Expenses based on occupancy changes (i.e., “gross-up” provisions).  Seller’s “share” of Reimbursable Tenant Expenses for the calendar year in which the Closing occurs (the “Closing Year”) shall be determined in accordance with Section 5.4.4(a) below.  Notwithstanding the foregoing, there shall be no proration of any such Reimbursable Tenant Expenses that are delinquent as of the Closing.  Rather, until the date that is six (6) months after the Closing, Buyer shall include such delinquencies (or unpaid amounts) in its normal billing and shall pursue the collection thereof in good faith after the Closing Date (but Buyer shall not be required to litigate or declare a default under any Lease or pursue any other action or remedy in connection with the recovery from tenants of Reimbursable Tenant Expenses relating to any period prior to the Closing Date).
(d)    All amounts payable under any Service Agreements (to the extent assumed by Buyer and subject to the terms of Section 7.5.2 below); reimbursements and recoveries of water, sewer and trash charges under the Leases; annual permits and/or inspection fees (calculated on the basis of the period covered); and any other expenses of the operation and maintenance of the Property.
(e)    Any other items of operating income or operating expense that are customarily apportioned between the parties in real estate closings of comparable commercial properties in the metropolitan area where the Property is located, as applicable; however, there will be no prorations for debt service, insurance premiums or payroll (because Buyer is not acquiring or assuming Seller’s financing, insurance or employees).
5.4.2    Utilities.  To the extent not in Tenant’s name, Buyer shall transfer all utilities to its name as of the Closing Date, and where necessary, post deposits with the utility companies.  To the extent not in Tenant’s name,  Seller shall use commercially reasonable efforts to cause all utility meters to be read as of the Closing Date.  Seller shall be entitled to recover any and all deposits held in Seller’s name by any utility company as of the Closing Date.  To the extent not in Tenant’s name, all charges for utilities for which the meters cannot be read or amounts ascertained at Closing shall be prorated outside of the escrow contemplated herein within sixty (60) days after the Closing Date.
5.4.3    Leasing Costs.  Seller shall be responsible for all Leasing Costs that are payable by reason of (a) the execution of the Existing Lease prior to the Effective Date, (b) the renewal, extension, expansion of, or the exercise of any other option under, the Existing Lease, prior to the Effective Date, and (c) amendments of the Existing Lease entered into prior to the Effective Date.  If the Closing occurs, Seller hereby agrees to provide Buyer with a credit at the Closing in an amount equal to those Leasing Costs 

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expressly set forth on Exhibit A attached hereto which have not been paid as of the Closing Date.  If the Closing occurs, Buyer shall be responsible for the payment (or, in the case of any amounts paid prior to the Closing, the reimbursement to Seller) of all other Leasing Costs which are not the responsibility of Seller hereunder, including (A) all Leasing Costs that become due and payable (whether before or after the Closing) as a result of (1) any Leases entered into during the Escrow Period in accordance with the terms of this Agreement (“New Leases”), (2) amendments entered into during the Escrow Period in accordance with the terms of this Agreement to renew, extend, expand or otherwise amend the Existing Lease or New Leases, or (3) any renewals, extensions or expansions of, or the exercise of any other option under, Existing Leases or New Leases exercised by tenants during the Escrow Period; and (B) all Leasing Costs as a result of renewals, extensions, expansions, or the exercise of any other option, occurring on or after the Closing Date of any Leases.  Except as expressly set forth set forth on Exhibit A attached hereto, Buyer shall assume the economic effect of any “free rent” or other concessions pertaining to the period from and after the Effective Date.  Except as expressly set forth set forth on Exhibit A attached hereto, if, as of the Closing Date, Seller shall have paid any Leasing Costs, including absorbing any free rent as owner of the Property during the Escrow Period, for which Buyer is responsible pursuant to the foregoing provisions, Buyer shall reimburse Seller therefor at the Closing provided that Seller provides Buyer with reasonable notice of such amounts prior to the expiration of the Due Diligence Period.  Seller shall pay (or cause to be paid), prior to the Closing, or credit Buyer at the Closing (to the extent unpaid) all Leasing Costs for which Seller is responsible pursuant to the foregoing provisions, and (subject to the reimbursement obligations set forth above) Seller shall pay (or cause to be paid) when due all Leasing Costs payable during the Escrow Period.  For purposes hereof, the term “Escrow Period” shall mean the period from the Effective Date until the Closing Date.
5.4.4    Proration of Reimbursable Tenant Expenses.
(a)    For the Closing Year.  In order to enable Buyer to make any reconciliations of tenant reimbursements of Reimbursable Tenant Expenses for the portion of the Closing Year during which Seller owned the Property, Seller shall determine in accordance with Section 5.4.1(c) above the Reimbursable Tenant Expenses actually paid or incurred by Seller for the portion of the Closing Year during which Seller owned the Property (“Seller’s Actual Reimbursable Tenant Expenses”) and the tenant reimbursements for such Reimbursable Tenant Expenses actually paid to Seller by tenants for the portion of the Closing Year during which Seller owned the Property (“Seller’s Actual Tenant Reimbursements”).  Without limitation on Section 5.4.6 below, on or before the date that is three (3) months after the Closing Date, Seller shall deliver to Buyer for Buyer’s review and approval, a proposed reconciliation statement (a “Seller’s Reconciliation Statement”) for the Property setting forth (i) Seller’s Actual Reimbursable Tenant Expenses, (ii) Seller’s Actual Tenant Reimbursements, and (iii) a calculation of the difference between the two (i.e., establishing that Seller’s Actual Reimbursable Tenant Expenses were either more or less than Seller’s Actual Tenant Reimbursements).  Upon Buyer’s review and approval of Seller’s calculations, which approval or disapproval shall be provided within ten (10) business days of Buyer’s receipt of a Seller’s Reconciliation Statement, any amount due to Seller pursuant to the foregoing calculation (in the event Seller’s Actual Tenant Reimbursements are less than Seller’s Actual Reimbursable Tenant Expenses) shall be paid by Buyer within the earlier to occur of (A) ten (10) business days after Buyer collects such under collected amounts from Tenant, or (B) nine (9) months after the Closing Date.  If Seller’s 

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Actual Tenant Reimbursements are more than Seller’s Actual Reimbursable Tenant Expenses, then Seller shall pay to Buyer such over collected amounts within ten (10) business days after Buyer’s approval (or deemed approval) of a Seller’s Reconciliation Statement.  If Buyer does not approve or disapprove of a Seller’s Reconciliation Statement within such ten (10) business day period, Buyer shall be deemed to have approved of such Seller’s Reconciliation Statement.  If Buyer disapproves of a Seller’s Reconciliation Statement, the parties shall diligently and expeditiously work towards resolving the discrepancies in such Seller’s Reconciliation Statement.  If Buyer is paid any amounts by Seller, Buyer thereafter shall be obligated to promptly remit the applicable portion to Tenant.  Buyer shall indemnify, defend, and hold Seller and the other “Seller Related Parties” (as hereinafter defined) harmless from and against any losses, costs, claims, damages, and liabilities, including reasonable attorneys’ fees and expenses incurred in connection therewith, arising out of or resulting from Buyer’s failure to remit any amounts actually received from Seller to Tenant in accordance with the provisions hereof.  If Buyer has transferred its interest in the Property to a successor-in-interest or assignee prior to such date, then, on or before the transfer of its interest in the Property, Buyer shall (1) in writing expressly obligate such successor-in-interest or assignee to be bound by the provisions of this Section 5.4.4(a), and (2) deliver written notice of such transfer to Seller, and thereafter Seller shall make the deliveries specified above to Buyer’s successor-in-interest or assignee.  A Seller’s Reconciliation Statement shall be final and binding for purposes of this Agreement.  
(b)    For Prior Calendar Years.  Seller shall be responsible for the reconciliation with Tenant of Reimbursable Tenant Expenses and Tenant reimbursements thereof for any calendar year prior to the Closing Year.  The obligations set forth in this Section 5.4.4(b) shall survive the Closing.
5.4.5    Intentionally Deleted.  
5.4.6    General Provisions.
(a)    In the event any prorations or apportionments made under this Section 5.4 and/or made in the Closing Statement shall prove to be incorrect for any reason, then any party shall be entitled to an adjustment to correct the same.  Any item that cannot be finally prorated because of the unavailability of information shall be tentatively prorated on the basis of the best data then available and reprorated when the information is available.
(b)    Notwithstanding anything to the contrary set forth herein, all reprorations contemplated by this Agreement shall be completed within six (6) months after the Closing Date except as expressly set forth in Section 5.4.4(a) hereof.  
(c)    Following the Closing, Seller shall retain all rights in and to any rents or other amounts due for any period prior to the Closing, and Buyer shall retain all rights in and to any rents or other amounts due from Tenant for any period after the Closing.  If Seller collects any rents or other amounts from Tenant from and after the Closing for amounts due for any period after the Closing, Seller shall hold the same in trust for Buyer and shall promptly remit the same to Buyer.

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(d)    The obligations of Seller and Buyer under this Section 5.4 shall survive the Closing for six (6) months after the Closing Date.  
6.    Condemnation or Destruction of Property.  In the event that, after the Effective Date but prior to the Closing Date, either any portion of the Property is taken pursuant to eminent domain proceedings or any of the Improvements are damaged or destroyed by any casualty, Seller shall be required to give Buyer prompt written notice of the same after Seller’s actual discovery of the same, but shall have no obligation to cause any direct or indirect member, partner or owner of Seller to contribute capital to Seller or any other entity, or to repair or replace (or cause to be repaired or replaced) any such damage, destruction or taken property.  At Closing, Seller shall assign to Buyer (except to the extent any condemnation proceeds or insurance proceeds are attributable to lost rents or other items applicable to any period prior to the Closing) all claims of Seller regarding any condemnation or casualty insurance coverage, as applicable, and all condemnation proceeds or proceeds from any such casualty insurance received by Seller on account of any casualty (except to the extent required for collection costs or repairs by Seller prior to the Closing Date), as applicable.  In connection with the foregoing, Seller shall not compromise, settle or adjust any claims without the prior consent of Buyer, which consent shall not be unreasonably withheld, conditioned or delayed.  In connection with any assignment of insurance proceeds hereunder, Seller shall credit Buyer with an amount equal to the applicable deductible amount under Seller’s insurance (but not more than the amount by which (a) the cost as of the Closing Date to repair the damage is greater than (b) the insurance proceeds and coverage to be assigned to Buyer), and any repair costs that are not covered by insurance proceeds.  In the event (A) the condemnation award or the cost of repair of damage to the Property on account of a casualty, as applicable, shall exceed three percent (3%) of the Purchase Price, (B) a casualty is uninsured or underinsured and Seller does not elect to credit Buyer at the Closing with an amount equal to the cost to repair such uninsured or underinsured casualty (Seller having the right, but not the obligation, to do so), or (C) the condemnation or damage to the Property (i) materially and adversely affects access to or parking at the Property, (ii) results in the Property violating any Laws or failing to comply with zoning or any recorded covenants, conditions or restrictions affecting the Property, or (iii) and the restoration thereof reasonably expects to exceed six (6) months, then Buyer may, at its option, terminate this Agreement by notice to Seller, given on or before the Closing Date, whereupon Buyer shall receive a refund of the Deposit less the Independent Consideration, which shall be paid to Seller (and no party hereto shall have any further obligation in connection herewith except under those provisions that expressly survive a termination of this Agreement).  In the event the condemnation award or the cost of repair of damage to the Property on account of a casualty, as applicable, shall exceed three percent (3%) of the Purchase Price, and said casualty is uninsured or underinsured, Seller may, at its option, terminate this Agreement by notice to Buyer, given on or before the Closing Date, whereupon Buyer shall receive a refund of the Deposit less the Independent Consideration, which shall be paid to Seller (and no party hereto shall have any further obligation in connection herewith except under those provisions that expressly survive a termination of this Agreement).
7.    Representations, Warranties and Covenants.
7.1    Representations and Warranties of Seller.  Seller hereby represents and warrants to Buyer that, except as set forth in Schedule 2, as of the Effective Date:

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(a)    Leases.  (i) There are no written leases of space in the Property or other agreements to occupy all or any portion of the Property that will be in force after the Closing and under which Seller is the landlord (whether by entering into the leases or agreements, or acquiring the Property subject to such leases or agreements) other than the Leases; (ii) all of the Leases are in full force and effect; (iii) neither Seller nor to Seller’s knowledge, Tenant, is in monetary default or has given written notice of any existing material non-monetary default under any of the Leases, except as set forth on Schedule 2; and (iv) to Seller’s knowledge, Seller has delivered, or made available, to Buyer, copies of all of the Leases utilized by Seller in its ownership and operation of the Property.  Except as expressly stated in this Agreement, all leasing commissions due to brokers in connection with the Existing Lease have been fully paid and satisfied by Seller;  
(b)    Litigation.  Other than litigation disclosed in Schedule 2 hereto, there is no pending (nor has Seller received any written notice of any threatened) action, litigation, condemnation or other legal proceeding against the Property or against Seller with respect to the Property.
(c)    Compliance.  Except as disclosed in the Due Diligence Materials or in Schedule 2 hereto, Seller has not received any written notice from any Governmental Entity having jurisdiction over the Property to the effect that the Property is not in compliance with applicable Laws other than notices of non-compliance that have been remedied.
(d)    Service Agreements.  Seller has not entered into any service or equipment leasing contracts relating to the Property that will be binding on Buyer or the Property after the Closing, except for the Service Agreements disclosed as part of the Due Diligence Materials hereto (subject to any restrictions on assignment contained therein).  Seller has not received any written notice that it is in monetary default, and neither party has given written notice of any existing material non-monetary default under the Service Agreements.  As used herein, the “Service Agreements” shall mean, collectively, service or equipment leasing contracts relating to the Property (other than Excluded Contracts) that are (A) disclosed as part of the Due Diligence Materials, or (B) entered into in accordance with this Agreement.  As used herein, “Excluded Contracts” shall mean contracts to which Seller or its affiliate is a party and relating to the Property for (1) insurance; (2) existing property management agreement; (3) the engagement of attorneys, accountants, brokers, surveyors, title companies, environmental consultants, engineers or appraisers; and (4) any other service contracts or agreements entered into after the Effective Date which Seller is obligated to terminate at or prior to the Closing at Seller’s sole cost and expense.  The Excluded Contracts are not being assigned to or assumed by Buyer hereunder, except that Buyer is assuming the obligation to pay the Leasing Costs for which it is responsible under Section 5.4.3 above.
(e)    Due Authority.  This Agreement and all agreements, instruments and documents herein provided to be executed or to be caused to be executed by Seller are and on the Closing Date will be duly authorized, executed and delivered by and are binding upon Seller.  Seller is a Delaware limited liability company, duly formed and validly existing and in good standing under the Laws of such state, and is duly authorized and qualified to do all things required of it under this 

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Agreement.  Seller has the capacity and authority to enter into this Agreement and consummate the transactions herein provided without the consent or joinder of any other party (except as otherwise may be set forth in this Agreement).
(f)    No Conflict.  Except as otherwise set forth in this Agreement, to Seller’s knowledge, neither this Agreement nor any agreement, document or instrument executed or to be executed in connection with the same, nor anything provided in or contemplated by this Agreement or any such other agreement, document or instrument, does now or shall hereafter materially breach, violate, invalidate, cancel, make inoperative or interfere with, or result in the acceleration or maturity of, any agreement, document, instrument, right or interest, or applicable Law affecting or relating to Seller or the Property.
(g)    Insolvency.  Seller has not (i) made a general assignment for the benefit of creditors, (ii) filed any voluntary petition in bankruptcy or suffered the filing of any involuntary petition by Seller’s creditors, (iii) suffered the appointment of a receiver to take possession of all, or substantially all, of Seller’s assets, (iv) suffered the attachment or other judicial seizure of all, or substantially all, of Seller’s assets, or (v) made an offer of settlement, extension or composition to its creditors generally.
(h)    Hazardous Materials.  Except as set forth in the Environmental Report or as disclosed as part of the Due Diligence Materials, to Seller’s knowledge, there are no Hazardous Materials installed or stored in or otherwise existing at, on, in or under the Property in violation of any Environmental Laws.
(i)    Patriot Act.  To Seller’s knowledge, none of its investors, affiliates or other agents (if any), acting or benefiting in any capacity in connection with this Agreement (excluding any shareholders in any such affiliated entities that are publicly traded companies) is a (i) a person or entity that is listed in the Annex to, or is otherwise subject to the provisions of, Executive Order No. 13224 on Terrorist Financing (effective September 24, 2001) (the “Executive Order”); (ii) a person or entity owned or controlled by, or acting for or on behalf of any person or entity that is listed in the Annex to, or is otherwise subject to the provisions of, the Executive Order; (iii) a person or entity that is named as a “specially designated national” or “blocked person” on the most current list published by the U.S. Treasury Department’s Office of Foreign Assets Control (“OFAC”) at its official website, http://www.treas.gov/offices/enforcement/ofac; (iv) a person or entity that is otherwise the target of any economic sanctions program currently administered by OFAC; or (v) a person or entity that is affiliated with any person or entity identified in clause (i), (ii), (iii) and/or (iv) above (herein, a “Prohibited Person”).  Except for the assets of any affiliated companies that are publicly traded companies, the assets Seller will transfer to Buyer under this Agreement are not the property of, and are not beneficially owned, directly or indirectly, by a Prohibited Person.  The assets Seller will transfer to Buyer under this Agreement are not the proceeds of specified unlawful activity as defined by 18 U.S.C. §1956(c)(7).

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(j)    Employees.  There are no employees of Seller employed in connection with the use, management, maintenance or operation of the Property whose employment will continue after the Closing Date.  
7.2    Representations and Warranties of Buyer.  Buyer hereby represents and warrants to Seller that:
7.2.1    This Agreement and all agreements, instruments and documents herein provided to be executed or to be caused to be executed by Buyer are and on the Closing Date will be duly authorized, executed and delivered by and are binding upon Buyer; Buyer is a limited liability company, duly organized and validly existing and in good standing under the Laws of the State of Delaware, and is duly authorized and qualified to do all things required of it under this Agreement; and Buyer has the capacity and authority to enter into this Agreement and consummate the transactions herein provided without the consent or joinder of any other party (except as otherwise may be set forth in this Agreement).  Notwithstanding any provision to the contrary contained in this Section 7.2.1, Buyer intends to seek the approval of its board of directors in order to consummate the acquisition of the Property, which approval Buyer intends to seek prior to the expiration of the Due Diligence Period.  If Buyer does not terminate this Agreement prior to the expiration of the Due Diligence Period, then Buyer shall be deemed to have obtained such approvals;
7.2.2    To Buyer’s knowledge, neither this Agreement nor any agreement, document or instrument executed or to be executed in connection with the same, nor anything provided in or contemplated by this Agreement or any such other agreement, document or instrument, does now or shall hereafter breach, violate, invalidate, cancel, make inoperative or interfere with, or result in the acceleration or maturity of, any agreement, document, instrument, right or interest, or applicable Law affecting or relating to Buyer.
7.2.3    Buyer has not (i) made a general assignment for the benefit of creditors, (ii) filed any voluntary petition in bankruptcy or suffered the filing of any involuntary petition by Buyer’s creditors, (iii) suffered the appointment of a receiver to take possession of all, or substantially all, of Buyer’s assets, (iv) suffered the attachment or other judicial seizure of all, or substantially all, of Buyer’s assets, (v) admitted in writing its inability to pay its debts as they come due, or (vi) made an offer of settlement, extension or composition to its creditors generally.
7.2.4    To Buyer’s knowledge, none of its investors, affiliates or other agents (if any), acting or benefiting in any capacity in connection with this Agreement (excluding any shareholders in any such affiliated entities that are publicly traded companies) is a (i) a person or entity that is listed in the Annex to, or is otherwise subject to the provisions of, the Executive Order; (ii) a person or entity owned or controlled by, or acting for or on behalf of any person or entity that is listed in the Annex to, or is otherwise subject to the provisions of, the Executive Order; (iii) a person or entity that is named as a “specially designated national” or “blocked person” on the most current list published by OFAC at its official website, http://www.treas.gov/offices/enforcement/ofac; (iv) a person or entity that is otherwise the target of any economic sanctions program currently administered by OFAC; or (v) a person or entity that is affiliated with a Prohibited Person.  Except for the assets of any affiliated companies that are publicly traded companies, the assets Buyer will transfer to Seller under this Agreement are not the property of, and are not beneficially owned, directly 

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or indirectly, by a Prohibited Person.  The assets Buyer will transfer to Seller under this Agreement are not the proceeds of specified unlawful activity as defined by 18 U.S.C. §1956(c)(7).
7.3    Survival.  The representations, warranties and covenants and all other obligations, provisions and liabilities under this Agreement or any of the Closing Documents (including any cause of action by reason of a breach thereof) shall survive the Closing for six (6) months after the Closing Date, unless otherwise expressly provided in this Agreement.  Notwithstanding anything to the contrary in this Agreement, Seller shall have no liability, and Buyer shall make no claim against Seller, for (and Buyer shall be deemed to have waived any failure of a condition hereunder by reason of) a failure of any condition or a breach of any representation or warranty, covenant or other obligation of Seller under this Agreement, or any Closing Document executed by Seller (including for this purpose any matter that would have constituted a breach of Seller’s representations and warranties had they been made on the Closing Date) if (a) the failure or breach in question constitutes or results from a condition, state of facts or other matter that was contained in any of the Due Diligence Materials or otherwise actually known to Buyer prior to the Closing (as such knowledge is defined in Section 7.4.2 herein), and Buyer proceeds with the Closing or (b) to the extent, in the case of a representation and warranty of Seller, the same is confirmed by the Tenant Estoppel Certificate.
7.4    Knowledge.  
7.4.1    When a statement is made under this Agreement to the “knowledge” or “actual knowledge” of Seller (or other similar phrase), it shall mean the present actual knowledge, without taking into account any constructive or imputed knowledge, and without duty of inquiry, of Mr. Drew Stepanek, but such individual shall not have any liability in connection herewith.  
7.4.2    When a statement is made under this Agreement to the knowledge or actual knowledge of Buyer or known to Buyer (or other similar phrase), it shall mean the present actual knowledge  without taking into account any constructive or imputed knowledge, and without duty of inquiry (except as expressly set forth herein), of Mr. Gregg Boehm and Ms. Betsy Kennett, but such individuals shall not have any liability in connection herewith.  Mr. Gregg Boehm and Ms. Betsy Kennett shall be deemed to have actual knowledge of any matter contained in any of the Due Diligence Materials, or delivered in accordance Section 10.8 hereof.
7.5    Interim Covenants of Seller.  Until the Closing Date or the sooner termination of this Agreement, to the extent Seller has the right and power to do so:
7.5.1    Maintenance/Operation.  Seller shall use commercially reasonable efforts to maintain and operate the Property in substantially the same manner as prior hereto pursuant to its normal course of business (such maintenance obligations not including capital expenditures or expenditures not incurred in such normal course of business), subject to reasonable wear and tear and further subject to destruction by casualty, condemnation or other events beyond the reasonable control of Seller.  Without limitation of the foregoing, Seller shall use commercially reasonable efforts to maintain its current insurance.  Notwithstanding the foregoing, Seller may (but shall not be obligated to), as part of its normal course of business, pursue tenant improvements under the Leases.

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7.5.2    Service Agreements.  After the expiration of the Due Diligence Period, Seller shall not enter into any new Service Agreement that will be binding on Buyer or the Property without the prior consent of Buyer (not to be unreasonably withheld, conditioned or delayed prior to the expiration of the Due Diligence Period, and sole and absolute discretion thereafter); provided, however, that Seller may, after the expiration of the Due Diligence Period and without the prior consent of Buyer, (i) in the ordinary course of Seller’s business enter into new service contracts and similar agreements which are cancelable on thirty (30) days’ notice without penalty or  are assignable without fee or consent by any person, or (ii) renew any service contracts or similar agreements affecting the Property in existence as of the Effective Date, provided the same (x) are made in accordance with the terms of such existing service contracts or similar agreements, (y) are cancelable upon thirty (30) days’ notice without penalty or are assignable without fee or consent by any person, and (z) written notice of any such contract or amendment is promptly provided to Buyer.  Seller may modify or terminate any Excluded Contract at any time.  If Buyer fails to notify Seller in writing of Buyer’s objections within three (3) business days of Buyer’s receipt of the proposed modification, termination or new Service Agreement (and a request for Buyer’s approval), then Buyer shall be deemed to have approved the same.  In addition, if Buyer fails to notify Seller in writing of Buyer’s objection to any existing Service Agreement prior to the expiration of the Due Diligence Period, then Buyer shall be deemed to have approved the same and shall assume the same at the Closing pursuant to the Bill of Sale, Assignment and Assumption.  If Buyer delivers a written notice of objection to any Service Agreement prior to the expiration of the Due Diligence Period, then, to the extent a termination right in favor of Seller is provided for in such Service Agreement, Seller shall promptly provide a notice of termination to the vendor thereunder with respect to each such Service Agreement to which Buyer has timely objected (collectively, the “Objectionable Service Agreements”); provided, however, that if the termination of any Objectionable Service Agreement cannot be made effective upon the Closing Date (Seller not being obligated to pay any money to accomplish such termination), then such Objectionable Service Agreement shall be assumed by Buyer at the Closing pursuant to the Bill of Sale, Assignment and Assumption together with all Service Agreements that do not constitute Objectionable Service Agreements.  Seller shall use commercially reasonable efforts, prior to the Closing Date, to obtain third party consents to the assignments of those Service Agreements which require such third parties’ consent and shall keep Buyer reasonably informed of the results of such efforts, provided that Seller’s obtaining any third party consents shall not be a condition to Buyer’s obligation to close the transactions contemplated under this Agreement.  Any transfer, assignment or termination fee or other fees incurred as a result of Seller’s transfer, assignment or termination of an Objectionable Service Agreement shall be paid by Seller.
7.5.3    Leases.  Seller may continue to offer the Property for lease in the same manner as prior hereto pursuant to its normal course of business and, upon request, Seller shall keep Buyer reasonably informed as to the status of material leasing activities known to Seller prior to the Closing Date.  After the expiration of the Due Diligence Period, Seller shall not enter into any New Lease or materially modify or terminate the Existing Lease without the prior consent of Buyer, which consent Buyer may withhold in its sole and absolute discretion.  If Buyer fails to notify Seller in writing of Buyer’s objections within three (3) business days of Buyer’s receipt of the proposed modification, termination or new lease terms (and a request for Buyer’s approval), then Buyer shall be deemed to have approved the same.

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7.5.4    Encumbrances.  Seller shall not encumber the Property with any mortgages, deeds of trust or other encumbrances except as expressly permitted above without Buyer’s consent (which shall not be unreasonably withheld, conditioned or delayed as to easements, licenses and similar documents required in the ordinary course of business).
7.6    Seller’s Environmental Inquiry.  Buyer acknowledges and agrees that the sole inquiry and investigation Seller has conducted in connection with the environmental condition of the Property is to obtain that certain report captioned “REPORT OF ENVIRONMENTAL SITE ASSESSMENT INLAND EMPIRE DISTRIBUTION CENTER #3 701 MALAGA PLACE ONTARIO, CALIFORNIA,” prepared by Pond, Robinson & Associates, LP, dated June 2009, Project No. 093034 (the “Environmental Report”), and that, for all purposes, including California Health and Safety Code Section 25359.7, Seller has acted reasonably in solely relying upon said inquiry and investigation.  
7.7    Natural Hazard Disclosure Requirement Compliance.  Seller has commissioned Disclosure Source, Inc. ((800) 880-9123) (“Natural Hazard Expert”) to prepare a natural hazard disclosure statement (the “Natural Hazard Disclosure”) including the matters required by that certain Article 1.7 of the California Civil Code (currently Section 1103 through 1103.14).  Buyer acknowledges that this transaction is not subject to such Article 1.7, but that nevertheless the Natural Hazard Disclosure shall serve to satisfy any and all disclosure requirements relating to the matters referenced in the Natural Hazard Disclosure.  Seller does not warrant or represent either the accuracy or completeness of the information in the Natural Hazard Disclosure, and Buyer shall use same merely as a part in its overall investigation of the Property.
8.    DISCLAIMER; RELEASE.  AS AN ESSENTIAL INDUCEMENT TO SELLER TO ENTER INTO THIS AGREEMENT, AND AS PART OF THE DETERMINATION OF THE PURCHASE PRICE, BUYER ACKNOWLEDGES AND AGREES, THAT, EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN THIS AGREEMENT AND THE DOCUMENTS EXECUTED BY SELLER IN CONNECTION HEREWITH:
8.1    DISCLAIMER.
8.1.1    AS-IS; WHERE-IS.  THE SALE OF THE PROPERTY HEREUNDER IS AND WILL BE MADE ON AN “AS IS, WHERE IS” BASIS.  EXCEPT AS MAY BE EXPRESSLY PROVIDED IN SECTION 7.1 ABOVE, OR THE SELLER CLOSING CERTIFICATE, SELLER HAS NOT MADE, DOES NOT MAKE AND SPECIFICALLY NEGATES AND DISCLAIMS ANY REPRESENTATIONS, WARRANTIES OR GUARANTIES OF ANY KIND OR CHARACTER WHATSOEVER, WHETHER EXPRESS OR IMPLIED, ORAL OR WRITTEN, PAST, PRESENT OR FUTURE OF, AS TO, CONCERNING OR WITH RESPECT TO THE PROPERTY OR ANY OTHER MATTER WHATSOEVER.
8.1.2    SOPHISTICATION OF BUYER.  BUYER IS A SOPHISTICATED BUYER WHO IS FAMILIAR WITH THE OWNERSHIP AND OPERATION OF REAL ESTATE PROJECTS SIMILAR TO THE PROPERTY, AND BUYER HAS HAD ADEQUATE OPPORTUNITY OR WILL HAVE ADEQUATE OPPORTUNITY PRIOR TO THE CLOSING (BUYER’S FAILURE TO SEND A TERMINATION NOTICE PURSUANT TO SECTION 4.6.2 

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ABOVE SHALL CONSTITUTE AN ACKNOWLEDGMENT BY BUYER THAT IT HAS HAD SUCH AN OPPORTUNITY) TO COMPLETE ALL PHYSICAL AND FINANCIAL EXAMINATIONS RELATING TO THE ACQUISITION OF THE PROPERTY HEREUNDER IT DEEMS NECESSARY, AND WILL ACQUIRE THE SAME SOLELY ON THE BASIS OF AND IN RELIANCE UPON SUCH EXAMINATIONS AND THE TITLE INSURANCE PROTECTION AFFORDED BY THE OWNER’S POLICY AND NOT ON ANY INFORMATION PROVIDED OR TO BE PROVIDED BY SELLER.
8.1.3    DUE DILIGENCE MATERIALS.  ANY INFORMATION PROVIDED OR TO BE PROVIDED WITH RESPECT TO THE PROPERTY IS SOLELY FOR BUYER’S CONVENIENCE AND WAS OR WILL BE OBTAINED FROM A VARIETY OF SOURCES.  SELLER HAS NOT MADE ANY INDEPENDENT INVESTIGATION OR VERIFICATION OF SUCH INFORMATION AND MAKES NO (AND EXPRESSLY DISCLAIMS ALL) REPRESENTATIONS AS TO THE ACCURACY OR COMPLETENESS OF SUCH INFORMATION.  SELLER SHALL NOT BE LIABLE FOR ANY MISTAKES, OMISSIONS, MISREPRESENTATION OR ANY FAILURE TO INVESTIGATE THE PROPERTY NOR SHALL SELLER BE BOUND IN ANY MANNER BY ANY VERBAL OR WRITTEN STATEMENTS, REPRESENTATIONS, APPRAISALS, ENVIRONMENTAL ASSESSMENT REPORTS, OR OTHER INFORMATION PERTAINING TO THE PROPERTY OR THE OPERATION THEREOF, FURNISHED BY SELLER OR BY ANY MANAGER, MEMBER OR PARTNER OF SELLER, OR BY ANY REAL ESTATE BROKERS, MEMBERS, PARTNERS, AGENTS, REPRESENTATIVES, TRUSTEES, AFFILIATES, DIRECTORS, OFFICERS, SHAREHOLDERS, EMPLOYEES, SERVANTS OR  AGENTS OF ANY OF THE FOREGOING, OR OTHER PERSONS OR ENTITIES ACTING ON BEHALF OF SELLER OR AT SELLER’S REQUEST (COLLECTIVELY, “SELLER RELATED PARTIES”).
8.2    RELEASE.  EFFECTIVE AS OF THE CLOSING, BUYER HEREBY RELEASES SELLER AND ALL SELLER RELATED PARTIES FROM ALL CLAIMS THAT BUYER OR ANY PARTY CLAIMING BY, THROUGH OR UNDER BUYER (A “BUYER RELATED PARTY”) HAS OR MAY HAVE AS OF THE CLOSING ARISING FROM OR RELATED TO ANY MATTER OR THING RELATED TO OR IN CONNECTION WITH THE PROPERTY, INCLUDING THE PROPERTY INFORMATION, THE LEASES AND THE TENANTS THEREUNDER, ANY CONSTRUCTION DEFECTS, ERRORS OR OMISSIONS IN THE DESIGN OR CONSTRUCTION AND ANY ENVIRONMENTAL CONDITIONS, AND BUYER SHALL NOT LOOK TO ANY SELLER RELATED PARTIES IN CONNECTION WITH THE FOREGOING FOR ANY REDRESS OR RELIEF.  THIS RELEASE SHALL BE GIVEN FULL FORCE AND EFFECT ACCORDING TO EACH OF ITS EXPRESSED TERMS AND PROVISIONS, INCLUDING THOSE RELATING TO UNKNOWN AND UNSUSPECTED CLAIMS, DAMAGES AND CAUSES OF ACTION, AND, IN THAT REGARD, WITH RESPECT TO THE FOREGOING MATTERS, BUYER HEREBY EXPRESSLY WAIVES ALL RIGHTS AND BENEFITS IT MAY NOW HAVE OR HEREAFTER ACQUIRE UNDER CALIFORNIA CIVIL CODE SECTION 1542 WHICH PROVIDES:  “A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE 

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RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.”  
___       /s/ S.R._______ 
INITIALS OF BUYER
8.3    SURVIVAL.  THIS SECTION 8 SHALL SURVIVE ANY TERMINATION OF THIS AGREEMENT AND THE CLOSING.
8.4    SCOPE OF RELEASE.  NOTWITHSTANDING ANY PROVISION HEREOF TO THE CONTRARY, THE PROVISIONS OF THIS SECTION 8 SHALL NOT RELEASE SELLER FROM LIABILITY FOR:  (A) ANY DAMAGES, CLAIMS, LIABILITIES OR OBLIGATIONS ARISING OUT OF OR IN CONNECTION WITH A BREACH OF (OR FAILURE TO COMPLY WITH) ANY COVENANT, REPRESENTATION OR WARRANTY OF SELLER SET FORTH IN THIS AGREEMENT OR ANY OF THE CLOSING DOCUMENTS EXECUTED BY SELLER IN CONNECTION WITH THIS AGREEMENT (BUT SUBJECT TO THE LIMITATIONS PROVIDED IN SECTIONS 7.3, 7.4 AND 10.2 OF THIS AGREEMENT); (B) SELLER’S INTENTIONAL, ACTIVE FRAUD; (C) ANY THIRD PARTY CLAIMS FOR PERSONAL INJURY OR PROPERTY DAMAGE OCCURRING PRIOR TO THE CLOSING DATE COVERED BY SELLER’S INSURANCE.
9.    Disposition of Deposit.
9.1    Default by Seller.  If the Closing shall not occur by reason of Seller’s default under this Agreement or the failure of satisfaction of the conditions benefiting Buyer under Section 4 above or the termination of this Agreement in accordance with Section 4 or Section 6 herein, then the Deposit (less the Independent Consideration, which shall be paid to Seller) shall be returned to Buyer, and neither party shall have any further obligation or liability to the other (other than those obligations that expressly survive a termination of this Agreement); provided, however, if the Closing shall not occur by reason of Seller’s default, then Buyer shall be entitled as its sole and exclusive remedy to either (a) specifically enforce this Agreement, but an action for specific performance must be commenced within sixty (60) days after the last scheduled Closing Date pursuant to the terms of this Agreement or be forever barred, or (b) terminate this Agreement and obtain a return of the Deposit (less the Independent Consideration, which shall be paid to Seller), but no other action, for damages or otherwise, shall be permitted.  In the event that specific performance is not available and Buyer terminates this Agreement pursuant to this Section 9.1, then Seller shall reimburse Buyer’s reasonable, actual out-of-pocket fees and expenses incurred by Buyer in connection with its inspection and investigation of the Property, including Buyer’s attorneys’ fees and expenses incurred in connection with the negotiation of this Agreement and the Access Agreement, in an aggregate amount not to exceed Fifty Thousand and No/100 U.S. Dollars ($50,000.00) (the “Pursuit Costs”); provided, however, such Pursuit Costs shall not preclude Buyer from collecting attorneys’ fees in connection with a suit or other proceeding against Seller pursuant to Section 10.10 hereof if Buyer is the prevailing party in any such action.  
9.2    Default by Buyer.  IN THE EVENT THE CLOSING SHALL NOT OCCUR BY REASON OF BUYER’S DEFAULT, THEN AS SELLER’S SOLE AND EXCLUSIVE REMEDY AT LAW AND IN EQUITY, SELLER MAY TERMINATE THIS AGREEMENT AND THE DEPOSIT 

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SHALL BE DELIVERED TO AND RETAINED BY SELLER AS FULL COMPENSATION AND LIQUIDATED DAMAGES UNDER THIS AGREEMENT FOR SUCH FAILURE TO CLOSE.  IN CONNECTION WITH THE FOREGOING, THE PARTIES RECOGNIZE THAT SELLER WILL INCUR EXPENSES IN CONNECTION WITH THE TRANSACTION CONTEMPLATED BY THIS AGREEMENT AND THAT THE PROPERTY MAY BE REMOVED FROM THE MARKET; FURTHER, THAT IT IS EXTREMELY DIFFICULT AND IMPRACTICABLE TO ASCERTAIN THE EXTENT OF DETRIMENT TO SELLER CAUSED BY THE BREACH BY BUYER UNDER THIS AGREEMENT AND THE FAILURE OF THE CONSUMMATION OF THE TRANSACTION CONTEMPLATED BY THIS AGREEMENT OR THE AMOUNT OF COMPENSATION SELLER SHOULD RECEIVE AS A RESULT OF BUYER’S DEFAULT, AND THAT THE DEPOSIT REPRESENTS THE PARTIES’ BEST CURRENT ESTIMATE OF SUCH DETRIMENT.  IN THE EVENT THE CLOSING SHALL NOT OCCUR BY REASON OF BUYER’S DEFAULT, THEN THE RETENTION OF THE DEPOSIT SHALL BE SELLER’S SOLE AND EXCLUSIVE REMEDY AT LAW AND IN EQUITY UNDER THIS AGREEMENT BY REASON OF SUCH DEFAULT, SUBJECT TO THE PROVISIONS OF THIS AGREEMENT THAT EXPRESSLY SURVIVE A TERMINATION OF THIS AGREEMENT, INCLUDING SECTION 10.10 BELOW.  THIS SECTION 9.2 SHALL SURVIVE ANY TERMINATION OF THIS AGREEMENT.  NOTHING CONTAINED IN THIS SECTION 9.2 SHALL LIMIT OR IMPAIR ANY OF SELLER’S RIGHTS AND REMEDIES AGAINST BUYER FOR ANY OTHER PRE-CLOSING DEFAULT BY BUYER UNDER THIS AGREEMENT (INCLUDING BUYER’S DUE DILIGENCE INDEMNITY UNDER SECTION 4.6 ABOVE OR SUCH DUE DILIGENCE INDEMNITY SET FORTH IN THE ACCESS AGREEMENT OR BREACH OF CONFIDENTIALITY UNDER SECTION 10.20 BELOW).
  /s/ S.R.                      /s/ D.S.  
BUYER’S INITIALS    SELLER’S INITIALS
9.3    Closing.  In the event the transaction herein provided shall close, the Deposit shall be applied as a partial payment of the Purchase Price.
10.    Miscellaneous.
10.1    Brokers.  Buyer represents and warrants to Seller that no broker or finder has been engaged by it in connection with the purchase contemplated by this Agreement.  Seller represents and warrants to Buyer that no broker or finder has been engaged by it, other than CBRE, Inc. (“Broker”), in connection with the sale contemplated by this Agreement, and Seller agrees to pay to Broker at the Closing any and all fees due to Broker in connection with this transaction pursuant to a separate agreement between Seller and Broker.  In the event of a claim for broker’s or finder’s fee or commissions in connection with the sale contemplated by this Agreement, then Seller shall indemnify, defend and hold harmless Buyer from the same if it shall be based upon any statement or agreement alleged to have been made by Seller, and Buyer shall indemnify, defend and hold harmless Seller from the same if it shall be based upon any statement or agreement alleged to have been made by Buyer.  The provisions of this Section 10.1 shall survive the Closing or any termination of this Agreement.

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10.2    Limitation of Liability.
10.2.1    Notwithstanding anything to the contrary contained herein, the direct and indirect shareholders, partners, members, trustees, officers, directors, employees, agents and security holders of the parties are not assuming any, and shall have no, personal liability for any obligations of the parties hereto under this Agreement.
10.2.2    Notwithstanding anything to the contrary contained herein, (a) if the Closing of the transactions hereunder shall have occurred, Seller shall have no liability to Buyer (and Buyer shall make no claim against Seller) for a breach of any representation or warranty or any other covenant, agreement or obligation of Seller, or for indemnification, under this Agreement or any Closing Document executed by Seller in connection with this Agreement, unless (i) the valid claims for all such breaches and indemnifications collectively aggregate to more than FIFTY THOUSAND AND No/100 DOLLARS ($50,000.00) (provided, however, that if such valid claims do exceed $50,000.00 in the aggregate, Seller shall only be responsible for that portion of the claim over $50,000.00), and (ii) the liability of Seller under this Agreement and such documents shall not exceed, in the aggregate, an amount equal to ONE MILLION AND No/100 DOLLARS ($1,000,000.00) (the “Seller Liability Cap”); provided, however, the Seller Liability Cap shall not apply to any amounts due for reproration under Section 5.4.6 hereof, any indemnity obligations pursuant to Section 10.1 hereof or the Leasing Costs for which Seller is expressly responsible pursuant to Section 5.4.3 hereof; and (b) in no event shall Seller be liable for any consequential or punitive damages.  In connection with any action alleging a breach of any warranty of title in the Deed, Buyer agrees that it shall in good faith pursue Title Company under its title policy(ies) with respect to any claim relating to the warranty of title under the Deed prior to bringing an action against Seller provided that the foregoing obligation in no way invalidates the Owner’s Policy.  For six (6) months following the Closing Date, Seller shall maintain access to funds so as to have the ability to satisfy any post-closing obligations that it may have hereunder.
10.2.3    The limitations of liability contained in this Section 10.2 are in addition to, and not in limitation of, any limitation on liability provided elsewhere in this Agreement or by Law or by any other contract, agreement or instrument.
10.3    Schedules and Exhibits; Entire Agreement; Modification.  All schedules and exhibits attached and referred to in this Agreement are hereby incorporated herein as if fully set forth in (and shall be deemed to be a part of) this Agreement.  This Agreement and the Access Agreement contain the entire agreement between the parties regarding the matters herein set forth and supersedes all prior agreements between the parties hereto regarding such matters.  This Agreement may not be modified or amended except by written agreement signed by both parties.
10.4    Time of the Essence.  Time is of the essence of this Agreement.  However, whenever action must be taken (including the giving of notice or the delivery of documents) under this Agreement during a certain period of time (or by a particular date) that ends (or occurs) on a non-business day, then such period (or date) shall be extended until the immediately following business day.  As used herein, “business day” shall mean any day other than a Saturday, Sunday, federal holiday, or state holiday in the state in which the Property is located.  Unless expressly indicated otherwise, (a) all references to time in this Agreement 

30

shall be deemed to refer to Pacific time, and (b) all time periods provided for under this Agreement shall expire at 5:00 p.m. Pacific time.
10.5    Interpretation.  Section headings shall not be used in construing this Agreement.  Each party acknowledges that such party and its counsel, after negotiation and consultation, have reviewed and revised this Agreement.  As such, the terms of this Agreement shall be fairly construed and the usual rule of construction, to the effect that any ambiguities herein should be resolved against the drafting party, shall not be employed in the interpretation of this Agreement or any amendments, modifications or exhibits hereto or thereto.  The words “herein”, “hereof”, “hereunder”, “hereby”, “this Agreement” and other similar references shall be construed to mean and include this Agreement and all amendments and supplements hereto unless the context shall clearly indicate or require otherwise.  Whenever the words “including”, “include” or “includes” are used in this Agreement, they shall be interpreted in a non-exclusive manner.  Except as otherwise indicated, all Schedule, Exhibit and Section references in this Agreement shall be deemed to refer to the Schedules, Exhibits and Sections in this Agreement.  Except as otherwise expressly provided herein, any approval or consent provided to be given by a party hereunder must be in writing to be effective and may be given or withheld in the sole and absolute discretion of such party.
10.6    Governing Law.  This Agreement shall be construed and enforced in accordance with the Laws of the state in which the Property is located without regard to application of its conflicts of law principles.
10.7    Successors and Assigns.  Buyer may not assign or transfer any of its rights or obligations under this Agreement either directly or indirectly (whether by outright transfer, transfer of ownership interests or otherwise) without the prior written consent of Seller; provided, however, Buyer may assign its interest in this Agreement on or before the Closing Date to an entity (a “Buyer Assignee”) in which Buyer, directly or indirectly, through one or more subsidiaries, has control, or is under common control with Buyer or any entity (or subsidiary thereof) that is advised by an affiliate of BCI IV Advisors LLC, so long as (a) Buyer gives Seller four (4) business days’ advance written notice thereof (including the name, vesting and signature block of the transferee), and (b) Buyer and such Buyer Assignee execute and deliver an assignment and assumption agreement in form reasonably satisfactory to Seller whereby such Buyer Assignee assumes all obligations of this Agreement.  In the event of a transfer to a Buyer Assignee, such Buyer Assignee shall assume in writing all of the transferor’s obligations and liabilities hereunder (whenever arising, whether before or after such assumption), but such transferor shall not be released from its obligations hereunder.  No consent given by Seller to any transfer or assignment of Buyer’s rights or obligations hereunder shall be construed as a consent to any other transfer or assignment of Buyer’s rights or obligations hereunder.  No transfer or assignment in violation of the provisions hereof shall be valid or enforceable.  Subject to the foregoing, this Agreement and the terms and provisions hereof shall inure to the benefit of and be binding upon the successors and assigns of the parties.
10.8    Notices.  All notices, approvals, demands and communications permitted or required to be given hereunder shall be in writing, and shall be delivered (a) personally, (b) by United States registered or certified mail, postage prepaid, (c) by Federal Express or other reputable courier service regularly providing evidence of delivery (with charges paid by the party sending the notice), or (d) by a PDF or similar attachment 

31

to an email, provided that such email attachment shall be followed within one (1) business day by sending such notice pursuant to clauses (a) or (c) above.  Any such notice to a party shall be addressed at the address set forth below (subject to the right of a party to designate a different address for itself by notice similarly given):
	
		
	To Seller:
	TLF (Inland Empire Distribution Center #3), LLC
c/o Stockbridge Capital Group
Four Embarcadero Center, Suite 3300
San Francisco, California  94111
Attention:  Mr. Drew Stepanek
Telephone:  (415) 658-3338
Email:  stepanek@sbfund.com

	And With Copy To:
	Pircher, Nichols & Meeks
900 North Michigan Avenue, Suite 1000
Chicago, Illinois  60611
Attention:  Real Estate Notices (EJML/DML) (File No. 5382.23)
Telephone:  (312) 915-3103
Email:  realestatenotices@pircher.com (Subject Line:  EJML/DML/File No. 5382.23)

	To Buyer:
	BCI IV Acquisitions LLC
c/o Black Creek Group
518 17th Street
Suite 1700
Denver, Colorado  80202
Attention:  Thomas McGonagle
Telephone:  (303) 228-2200
Email:  tom.mcgonagle@blackcreekcapital.com 

	With copy to:
	BCI IV Acquisitions LLC
c/o Black Creek Group
518 17th Street
Suite 1700
Denver, Colorado  80202
Attention:  General Counsel
Telephone:  (303) 228-2200
Email:  josh.widoff@blackcreekcapital.com

	With a copy to:
	Allen Matkins Leck Gamble Mallory & Natsis LLC
Attention:  Sandra A. Jacobson, Esq.
1900 Main Street, Fifth Floor
Irvine, California  92614
Telephone:  (949) 553-1313
Email:  sjacobson@allenmatkins.com 

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Service of any such notice or other communications so made shall be deemed effective on the day of actual delivery (whether accepted or refused).  The attorneys for any party hereto shall be entitled to provide any notice that a party desires to provide or is required to provide hereunder.
10.9    Third Parties.  Except as provided in Section 8.2 above, nothing in this Agreement, whether expressed or implied, is intended to confer any rights or remedies under or by reason of this Agreement on any person other than the parties hereto and their respective successors and assigns, and nothing in this Agreement is intended to relieve or discharge the obligation or liability of any third persons to any party to this Agreement, and no provision shall give any third parties any right of subrogation or action over or against any party to this Agreement.
10.10    Legal Costs.  The parties hereto agree that they shall pay directly any and all legal costs which they have incurred or shall incur on their own behalf in the preparation of this Agreement, all deeds and other agreements pertaining to this transaction and that such legal costs shall not be part of the closing costs.  In addition, if either Buyer or Seller brings any suit or other proceeding, including an arbitration proceeding, with respect to the subject matter or the enforcement of this Agreement, the prevailing party (as determined by the court, agency, arbitrator or other authority before which such suit or proceeding is commenced), in addition to such other relief as may be awarded, shall be entitled to recover reasonable attorneys’ fees, expenses and costs of investigation actually incurred.  The foregoing includes attorneys’ fees, expenses and costs of investigation (including those incurred in appellate proceedings), costs incurred in establishing the right to indemnification, or in any action or participation in, or in connection with, any case or proceeding under Chapter 7, 11 or 13 of the Bankruptcy Code (11 United States Code Sections 101 et seq.), or any successor statutes.  The provisions of this Section 10.10 shall survive the Closing or any termination of this Agreement.
10.11    Further Assurances.  Each party shall, whenever and as often as it shall be requested so to do by the other, cause to be executed, acknowledged or delivered any and all such further instruments and documents as may be necessary or proper, in the reasonable opinion of the requesting party, in order to carry out the intent and purpose of this Agreement (provided the same do not increase in any material respect the costs to, or liabilities or obligations of, such party in a manner not otherwise provided for herein).  The terms of this Section shall survive the Closing or any termination of this Agreement.
10.12    Severability.  If any term or provision of this Agreement or the application thereof to any person or circumstance shall, to any extent, be invalid or unenforceable, the remainder of this Agreement, or the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby, and each such term and provision of this Agreement shall be valid and be enforced to the fullest extent permitted by Law.
10.13    Press Releases.  Except as otherwise expressly permitted under Section 10.20 below, no press release or other public disclosure regarding the terms of this Agreement or the transaction contemplated hereby shall be made without the prior written consent of Buyer and Seller, such consent not to be unreasonably withheld with respect only to public disclosure of the fact of the closing of the transaction without inclusion therein of any financial or other detailed terms of this Agreement.  Except as otherwise expressly permitted under Section 10.20 below, without limitation on the foregoing, each of Buyer and Seller 

33

shall use diligent efforts not to make any public disclosure of the Purchase Price (except as required by Laws in connection with the delivery or recording of the Deed).  However, either party shall have the right to make public disclosures required by (a) Law (but only if such party gives the other party reasonable notice and an opportunity to retain a restraining order or take other similar protective actions) or (b) the rules and regulations of a securities exchange.  The terms of this Section shall survive the Closing or any termination of this Agreement.
10.14    Anti-Terrorism Law.  Each party shall take any actions that may be required to comply with the terms of the USA Patriot Act of 2001, as amended, any regulations promulgated under the foregoing law, Executive Order No. 13224 on Terrorist Financing, any sanctions program administrated by the U.S. Department of Treasury’s Office of Foreign Asset Control or Financial Crimes Enforcement Network), or any other Laws, regulations or executive orders designed to combat terrorism or money laundering, if applicable, to this Agreement.  Each party represents and warrants to the other party that it is not an entity named on the List of Specially Designated Nationals and Blocked Persons maintained by the U.S. Department of Treasury, as last updated prior to the date of this Agreement.
10.15    Post-Closing Access to Records.  Within thirty (30) day following receipt by Seller of Buyer’s reasonable written request, from the Closing and for two (2) years thereafter, Seller shall, at Seller’s principal place of business, during Seller’s normal business hours, to the extent still in Seller’s possession, make available to Buyer for inspection and copying (at Buyer’s sole cost and expense), all of Seller’s books and records directly related to the Existing Lease and Tenant’s audit rights (expressly excluding any Excluded Materials).
10.16    Information and Audit Cooperation.  To the extent necessary to enable Buyer to comply with any financial reporting requirements applicable to Buyer and imposed by any Governmental Entity, including Rule 3-14 of Securities and Exchange Commission Regulation S-X, upon at least ten (10) business days prior written notice to Seller, for three (3) months following the Closing Date, at Buyer’s sole cost and expense, Seller shall cooperate in a commercially reasonable manner with Buyer’s auditors in preparing an audit of the trial balance related to the operation of the Property for the calendar years 2017 and 2018.  Other than any covenant, representation or warranty of Seller set forth in this Agreement or any of the closing documents executed by Seller in connection with this Agreement (but subject to the limitations provided in Sections 7.3, 7.4 and 10.2 of this Agreement), Seller makes no representations, warranties or covenants with respect to the trial balance or the books and records which may be reviewed in auditing the same, and Buyer releases and waives any liability or claims against Seller related to the trial balance or the books and records which may be reviewed and audited.  Buyer’s release and wavier set forth in this Section 10.16 shall survive the Closing.
10.17    Jurisdiction; Venue.  Each party consents to the jurisdiction of any state or federal court located within San Francisco County, California, waives personal service of any and all process upon it, consents to the service of process by registered mail directed to it at the address stated in Section 10.8 hereof, and acknowledges that service so made shall be deemed to be completed upon actual delivery thereof (whether accepted or refused).  In addition, each party consents and agrees that venue of any action instituted 

34

under this Agreement or any agreement executed in connection herewith shall be proper in San Francisco County, California, and each party waives any objection to venue.  
10.18    Waiver of Trial by Jury.  To the extent permitted by Law, the parties hereby irrevocably waive their respective rights to a jury trial of any claim or cause of action based upon or arising out of this Agreement.  This waiver shall apply to any subsequent amendments, renewals, supplements or modifications to this Agreement or any document executed pursuant thereto.  In the event of litigation, this Agreement may be filed as a written consent to a trial by the court.
10.19    Acceptance of Deed.  The acceptance of the Deed by Buyer shall be deemed full compliance by Seller of all of Seller’s obligations under this Agreement except for those obligations of Seller which are specifically stated to survive the Closing hereunder.
10.20    Confidentiality.  The terms of the transaction contemplated in this Agreement, including the Purchase Price and all other financial terms, shall remain confidential and shall not be disclosed by either party hereto without the written consent of the other except (a) to such party’s directors, officers, partners, employees, legal counsel, accountants, lenders, engineers, architects, brokers, financial advisors and similar professionals and consultants, to the extent such party deems it necessary or appropriate in connection with the transaction contemplated hereunder (and such party shall inform each of the foregoing parties of such party’s obligations under this Section 10.20 and shall secure the agreement of such parties to be bound by the terms hereof), or (b) as otherwise required by Law or regulation (including the rules and regulations of a securities exchange).  Unless and until the transaction contemplated by this Agreement shall close, Buyer shall also keep confidential all documents, reports and information concerning the Property obtained from Seller or through the due diligence investigation of the Property by Buyer or its agents, except to the extent permitted by clauses (a) or (b) above.  The provisions of this Section 10.20 shall survive any termination of this Agreement or the Closing (as applicable).
10.21    1031 Exchange.  Seller and/or Buyer may, for the purpose of treating all or part of its sale or acquisition of the Property as a like-kind exchange of property under Section 1031 of the Internal Revenue Code, assign certain rights that it has under this Agreement, including its right to sell or acquire the Property pursuant to this Agreement, to one or more qualified intermediaries, and to provide notice of such assignment to the other party, provided that no such assignment shall release the assigning party from its obligations hereunder and no such assignment shall delay the Closing hereunder.  The non-assigning party shall not incur any costs or liabilities in connection with such exchange.  The assigning party agrees to save, indemnify, protect and defend the other party (with counsel reasonably satisfactory to such other party) from and against and hold the other party harmless from any and all expenses and/or liabilities arising from such assignment and exchange and the other party shall not be required to take title to any other property.  The provisions of this Section 10.21 shall survive the Closing.
10.22    Counterparts; Delivery.  This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which shall constitute one and the same document.  The delivery of an executed counterpart of this Agreement by facsimile or as a PDF or similar attachment to an e-mail shall constitute effective delivery of such counterpart for all purposes with the same force and effect as the delivery of an original, executed counterpart.

35

10.23    Effectiveness.  In no event shall any draft of this Agreement create any obligation or liability, it being understood that this Agreement shall be effective and binding only when a counterpart hereof has been executed and delivered by each party hereto.
[Signatures appear on following page.]

36

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.
	
	
	SELLER:

TLF (INLAND EMPIRE DISTRIBUTION CENTER #3), LLC,
a Delaware limited liability company

   By:   TLF Logistics, LLC,
      a Delaware limited liability company,
      its Manager

      By:   TLF Logistics II, L.P., 
         a Delaware limited partnership, 
         its Sole Member

         By:   CV Texas GP, LLC, 
            a Delaware limited liability company, 
            its General Partner

            By:   Core and Value Advisors, LLC, 
               a Delaware limited liability company, 
               its Sole Member

               By:   /s/ Drew Stepanek
               Name:   Drew Stepanek
               Its:   Senior Vice President 

	BUYER:

BCI IV ACQUISITIONS LLC, 
a Delaware limited liability company

By:   BCI IV Operating Partnership LP,
   a Delaware limited partnership,
   its Sole Member

   By:   Black Creek Industrial REIT IV Inc.,
      a Maryland corporation,
      its General Partner

      By:  /s/ Scott Recknor
      Name:  Scott Recknor
      Title:  Managing Director

5382-23 3993407.6     37Exhibit

Exhibit 10.7
PURCHASE AND SALE AGREEMENT
[Park 429: 641 & 643 East Crown Point Road, Ocoee, FL]

ARTICLE 1:    PROPERTY/PURCHASE PRICE
1.1    Certain Basic Terms.
(a)    Purchaser and Notice Address:
BCI IV ACQUISITIONS LLC, a Delaware limited liability company 
c/o Black Creek Capital Group
518 17th Street, 17th Floor
Denver, Colorado  80202
Attention:  Thomas McGonagle
Email:  tmcgonagle@blackcreekgroup.com
With a copy to:
Joshua J. Widoff
General Counsel
Black Creek Capital Group
518 17th Street, 17th Floor
Denver, Colorado  80202
Email:  jwidoff@blackcreekgroup.com
and a copy to:

Jeremy T. Bunnow
Barack Ferrazzano Kirschbaum & Nagelberg LLP
200 West Madison Street, Suite 3900
Chicago, Illinois 60606
Email: jeremy.bunnow@bfkn.com
(b)    Seller and Notice Address:
BPG OCOEE 1, LLC, a Delaware limited liability company 
c/o BlueScope Properties Group 
1540 Genessee Street 
Kansas City, MO 64102 
Attn: Matthew Roth 
Telephone:  816/968-3512 
Email: matthew.roth@bluescopeproperties.com
With a copy to:
Greenberg Traurig LLP 
77 West Wacker Drive, Suite 3100 
Chicago, Illinois  60601 
Attn:  Milos Markovic, Esq. 
Telephone:  (312) 456-1041 
Email:  markovicm@gtlaw.com
(c)    Effective Date:    May 16, 2018.

(d)    Purchase Price:  $45,700,000.00.
(e)    Earnest Money:  $1,000,000.00, including interest thereon.
(f)    Due Diligence Period:    The period ending at 5:00pm eastern on May 25, 2018.
(g)    Closing Date:  June 4, 2018.
(h)    Title Company:
First American Title Insurance Company, 
National Commercial Services 
Attn: Chad Wilson, Senior Escrow Officer 
1850 Mt. Diablo Blvd., Suite 300 
Walnut Creek, CA 94596 
Telephone: (925) 927-2155   
Email:  cjwilson@firstam.com
(i)    Escrow Agent:
First American Title Insurance Company, 
National Commercial Services 
Attn: Chad Wilson, Senior Escrow Officer 
1850 Mt. Diablo Blvd., Suite 300 
Walnut Creek, CA 94596 
Telephone: (925) 927-2155   
Email:  cjwilson@firstam.com    
(j)    Broker: CBRE.
1.2    Property.  Subject to the terms of this Purchase and Sale Agreement (the “Agreement”), Seller agrees to sell to Purchaser, and Purchaser agrees to purchase from Seller, the following property (the “Property”):
(a)    The real property described in Exhibit A, together with the buildings and improvements thereon (the “Improvements”), and all appurtenances of the above-described real property, including easements or rights-of-way relating thereto, and, without warranty, all right, title, and interest, if any, of Seller in and to the land lying within any street or roadway adjoining the real property described above or any vacated or hereafter vacated street or alley adjoining said real property.
(b)    All title and interest, in and to all fixtures, furniture, equipment, and other tangible personal property, if any, owned by Seller (the “Personal Property”) presently located on such property, but specifically excluding any items of personal property owned by tenants.
(c)    All of Seller’s interest, as landlord, in the “Leases,” being, collectively, (i) that certain Lease Agreement between Seller and City Furniture, Inc., dated February 22, 2018, (ii) that certain Lease Agreement between Seller and Maintenance Supply Headquarters, LP, dated March 19, 2018 (the “Maintenance Supply Lease”), (iii) that certain Lease Agreement between Seller and Kramer America, dated May 19, 2017, and (vi) all leases and amendments thereto which may be made by Seller after the date hereof and before Closing as permitted by this Agreement.
(d)    All of Seller’s right, title and interest, if any, in and to all of the following items, to the extent assignable and without warranty (the “Intangible Personal Property”):  (A) licenses, and permits relating to the operation of the Property, (B) the right to use the name of the property (if any) in connection with the Property, but specifically excluding any trademarks, service marks and trade names of Seller and with reservation by Seller to use such name in connection with other property owned by Seller in the vicinity of the Property, (C) if still in effect, guaranties and warranties received by Seller from any contractor, manufacturer or other person in connection with the Property, including the construction or operation thereof, excluding with respect to the Ongoing Work (defined below),  (D) that certain Holdback Escrow Agreement dated May 7, 2018 among Seller, Kramer America, Inc. and Grace Title, Incorporated, and (E) subject to the provisions of Section 5.2(d) below, that certain Exclusive Lease Listing and Commission Agreement  between Seller and Cite Realty Partners, LLC dated as of May 26, 2017 (the “Leasing Commission Agreement”).  

(e)    All of Seller’s interest, as landlord, in the Assumed Service Contracts (hereinafter defined). 
1.3    Earnest Money.  The Earnest Money, in immediately available federal funds, evidencing Purchaser’s good faith to perform Purchaser’s obligations under this Agreement, shall be deposited by Purchaser with the Escrow Agent not later than the second business day after the Effective Date.  In the event that Purchaser fails to timely deposit the Earnest Money with the Escrow Agent, this Agreement shall be of no force and effect.  The Escrow Agent shall pay the Earnest Money to Seller at and upon the Closing, or otherwise, to the party entitled to receive the Earnest Money in accordance with Article 9 below.
1.4    Independent Contract Consideration.  At the same time as the deposit of the Earnest Money to the Escrow Agent, Purchaser shall deliver to Seller in cash the sum of One Hundred and No/100 Dollars ($100.00) (the “Independent Contract Consideration”) which amount has been bargained for and agreed to as consideration for Purchaser’s exclusive option to purchase the Property and the Due Diligence Period provided herein, and for Seller’s execution and delivery of this Agreement.  The Independent Contract Consideration is in addition to and independent of all other consideration provided in this Agreement, and is nonrefundable in all events.
ARTICLE 2:     INSPECTIONS
2.1    Property Information.  Seller shall provide (or has provided) copies to Purchaser, via electronic data room, to the extent in Seller’s possession or reasonable control, the following (“Property Information”): 
(a)    the Leases including all amendments;
(b)    the most current rent roll of the Property itemizing all Leases in effect and the current rent, the amount of security deposits, current Operating Costs (as defined below) and other expense recoveries thereunder (“Rent Roll”);
(c)    year to date operating statements (the “Operating Statements”);
(d)    a list and copies of any management, service or maintenance agreements, if any, relating to the Property (“Service Contracts”);
(e)    any existing land title survey of the Property; 
(f)    any environmental, soils, architectural and engineering reports prepared for Seller in connection with Seller’s purchase, ownership or management of the Property;
(g)    as-built drawings;
(h)    warranties, guaranties, permits, certificates of occupancy and/or substantial completion; 
(i)    the Leasing Commission Agreement;
(j)    the Maintenance Agreement (hereinafter defined);
(k)    that certain Standard Form of Agreement Between Owner and Contractor for a Project of Limited Scope made as of May 10 2018 between Steve Black Construction and Seller (the “Ongoing Work Contract”);
(l)    tenant financial statements; and
(m)    copies of all contracts and agreements regarding the Ongoing Work and the shell/core construction of the Improvements.
Except as otherwise expressly provided herein, Seller makes no representations or warranties as to the accuracy or completeness of the Property Information.
2.2    Tenant Estoppels.  Seller shall use commercially reasonable efforts to secure and deliver to Purchaser by the Closing Date estoppel certificates for all Leases executed by the applicable tenants (and any applicable guarantors) consistent with the information in the Rent Roll and substantially in the form attached hereto as Exhibit B or such form as may be required under the applicable Leases.  Purchaser may terminate this Agreement upon 5 days notice to Seller if by the Closing Date Seller has not 

delivered estoppel certificates executed by the applicable tenants (and any applicable guarantors) for Leases covering 100 percent of the leased floor area of the Property that are consistent with the information in the Rent Roll and substantially in the form attached hereto as Exhibit B, show no materially adverse matters and are dated no earlier than 30 days prior to the Closing Date.  Upon any such termination, the Earnest Money shall be immediately released to Purchaser, and neither party shall have any further rights or liabilities hereunder except for those provisions which survive the termination of this Agreement.  Seller shall provide Purchaser with an opportunity to review each estoppel certificate prior to submitting same to each tenant.
2.3    Confidentiality.  Purchaser agrees that information gathered in connection with this Agreement that is not generally known to the public (the “Confidential Information”) shall be considered Confidential Information, and such Confidential Information shall be used by Purchaser and its agents, contractors, engineers, surveyors, attorneys, accountants, consultants, brokers, officers, directors, members, employees, and current and prospective partners and lenders (collectively, “Consultants”) solely for the purpose of Purchaser’s evaluation of an acquisition of the Property.  Notwithstanding anything to the contrary contained in this Agreement, “Confidential Information” shall not include any (i) documents or information which is or becomes generally available to the public other than as a result of a disclosure by Purchaser or its Consultants; (ii) information which reasonably can be demonstrated to be known to Purchaser or its Consultants prior to its disclosure under that certain Limited Access Agreement between Purchaser and Seller dated April 26, 2018; (iii) information which becomes available to Purchaser or its Consultants on a non-confidential basis from sources other than Seller not bound, to the knowledge of Purchaser, by any legal or other obligation prohibiting the disclosure of Confidential Information by such source to Purchaser.  Except as required by a court order or other legal process, Purchaser shall not reveal, disclose, disseminate, publish or communicate to any other persons, parties or entities any Confidential Information without the prior written consent of Seller in each instance, which shall be given or withheld in Seller’s sole and absolute discretion, other than to Purchaser’s Consultants involved in this transaction who have been advised to preserve the Confidential Information in a confidential manlier (collectively, “Permitted Outside Parties”).  Purchaser shall be responsible for ensuring that any and all Permitted Outside Parties complies with the provisions of this Paragraph.  In permitting Purchaser and the Permitted Outside Parties to review the Property Information or any other Confidential Information, Seller has not waived any privilege or claim of confidentiality with respect thereto, and no third party benefits or relationships of any kind, either express or implied, have been offered, intended or created.  The provisions of this Paragraph shall survive the termination of this Agreement for a period of 1 year but shall not survive Closing.  
2.4    Inspections in General.  During the Due Diligence Period, Purchaser and its Consultants shall have the right to enter upon the Property for the purpose of making non-physically invasive inspections at Purchaser’s sole risk, cost and expense.  Seller agrees to cooperate reasonably with any such investigations, tests, samplings, analyses, inspections, studies or meetings and interviews made by or at Purchaser’s direction.  All of such entries upon the Property shall be at reasonable times during normal business hours and after at least 24 hours prior notice to Seller or Seller’s agent (which notice may be provided telephonically or via email to Matthew Roth: (816) 289-2838 or matthew.roth@bluescopeproperties.com), and Seller or Seller’s agent shall have the right to accompany Purchaser during any activities performed by Purchaser on the Property.  Purchaser shall not disturb the tenants on the Property, and Purchaser’s inspection shall be subject to the rights of tenants under their Leases.  At Seller’s request, Purchaser shall provide Seller, without warranty, with a copy of the final reports made by third parties on behalf of Purchaser, excluding only market and economic feasibility studies and privileged materials.  If any inspection or test damages the Property, Purchaser will repair such damage consistent with the condition of the Property as existed before the inspection or test; provided, however, Purchaser shall have no obligation to repair any damage to the extent caused by Seller’s negligence or misconduct, to remediate, contain, abate or control any materials not placed on the Property by Purchaser or its Consultants, or to repair or restore any latent condition discovered by Purchaser or its Consultants (as long as Purchaser or its Consultants take reasonable steps not to exacerbate such condition once discovered by Purchaser).  Purchaser shall defend, indemnify Seller and hold Seller, together with its affiliates, parent and subsidiary entities, successors, assigns, partners, managers, members, employees, officers, directors, trustees, shareholders, counsel, representatives, agents, property manager and regional property manager (collectively, with Seller, “Seller’s Indemnified Parties”) and the Property harmless from and against any and all losses, costs, damages, claims, or liabilities, including but not limited to, mechanic’s and materialmen’s liens and Seller’s attorneys’ fees, arising from Purchaser’s or its Consultants entry onto the Property, and any inspections performed (or other related actions) by Purchaser with respect to the Property; provided, however, that the foregoing indemnity shall not extend to, and in no event shall Purchaser be liable to any of Seller’s Indemnified Parties for any (i) negligence or misconduct of any of Seller’s Indemnified Parties, (ii) pre-existing condition(s) on or about the Property (except any incremental damage resulting from the exacerbation of such pre-existing condition(s) by Purchaser’s and/or any party acting under Purchaser’s direction for entry onto and investigation of the Property after their discovery of such pre-existing condition(s)), (iii) the displacement or disturbance of materials (to the extent the investigations resulting in such displacement or disturbance are permitted hereunder) not placed on the Property by Purchaser or its Consultants or (iv) any diminution in value in the Property arising from, or related to, matters discovered by any inspections. The provisions of this paragraph shall survive indefinitely any termination of this Agreement.  
Before any entry, Purchaser shall provide Seller with a certificate of insurance evidencing the following coverages:

(i)    Worker’s Compensation – Coverage A: statutory amount
Coverage B: Employer’s Liability insurance:
$500,000 Each Accident
$500,000 Disease, Policy Limit
$500,000 Disease, Each Employee

		
	(ii)
	Commercial General Liability including contractual liability coverage, on an occurrence basis, including Bodily Injury and Property Damage Liability, Personal and Advertising Injury Liability for the following limits:

General Aggregate             $  2,000,000
Products - Completed Operations Aggregate    $  2,000,000
Each Occurrence                $  1,000,000
Personal and Advertising Injury Liability    $  1,000,000

Purchaser’s and Consultant’s Commercial General Liability policy shall include an endorsement deleting the contractual liability exclusion contained in the Personal and Advertising Injury Liability coverage.

		
	(iii)
	Owned, Hired and Non-Owned Business Automobile liability insurance in an amount no less than $1,000,000 per accident Combined Single Limit for bodily injury and property damage

		
	(iv) 
	Umbrella Policy (Occurrence form with defense costs outside the limits): $1,000,000 Each Occurrence/$1,000,000 Aggregate Excess of the Employer’s Liability, Commercial General Liability and Automobile Liability coverages on a following form basis, including coverage for Additional Insureds.

All coverage shall remain in effect during any period of entry on the Property by Purchaser or its Consultants and be provided by insurance companies with a current Best’s Rating of A VIII or higher.  At the expiration of any such policy, Purchaser will provide to Seller evidence of the renewal or replacement of the aforesaid policies.
2.5    Environmental Inspections and Release.  The inspections under Paragraph 2.4 may include a non-invasive Phase I environmental inspection of the Property, but no Phase II environmental inspection or other invasive inspection or sampling of soils or materials, including without limitation construction materials, either as part of the Phase I inspection or any other inspection, shall be performed without the prior written consent of Seller, which may be withheld in its sole and absolute discretion, and if consented to by Seller, the proposed scope of work and the party who will perform the work shall be subject to Seller’s review and approval.  Purchaser shall deliver to Seller copies of any Phase II or other environmental report to which Seller consents on and subject to the terms of Paragraph 2.4.
Purchaser, for itself and any entity affiliated with Purchaser, waives and releases Seller and its employees, agents, officers, trustees, directors and shareholders from and against any claims, demands, penalties, fines, liabilities, settlements, damages, costs or expenses of whatever kind or nature, known or unknown, existing and future, contingent or otherwise (including any action or proceeding, brought or threatened, or ordered by any appropriate governmental entity) made, incurred, or suffered by Purchaser or any entity affiliated with Purchaser relating to the presence, misuse, use, disposal, release or threatened release of any hazardous or toxic materials, chemicals or wastes at the Property and 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 described above in this paragraph or with respect to any obligation or liability of Seller expressly provided under this Agreement or the documents executed and delivered by Seller at or in connection with Closing in accordance with this Agreement (the “Closing Documents”).  The provisions of this paragraph shall survive indefinitely any Closing or termination of this Agreement and shall not be merged into the Closing Documents.
Purchaser’s
   Initials:      /s/ A.K.

2.6    Termination During Due Diligence Period.  Purchaser shall have the right to terminate this Agreement for any or no reason by giving to Seller notice of termination before the expiration of the Due Diligence Period.  Upon such termination, 

the Earnest Money shall be immediately released to Purchaser, and neither party shall have any further rights or liabilities hereunder except for those provisions which survive the termination of this Agreement.  
2.7    Purchaser’s Reliance on its Investigations.  TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW AND EXCEPT FOR SELLER’S REPRESENTATIONS AND WARRANTIES IN PARAGRAPH 6.5 AND 7.1 AND ANY WARRANTIES IN THE CLOSING DOCUMENTS (COLLECTIVELY, THE “SELLER’S WARRANTIES”) AND ANY COVENANTS, INDEMNITIES AND OBLIGATIONS OF SELLER UNDER THIS AGREEMENT THAT SURVIVE CLOSING OR THAT ARE CONTAINED IN THE CLOSING DOCUMENTS (COLLECTIVELY, THE “SELLER’S COVENANTS”), THIS SALE IS MADE AND WILL BE MADE WITHOUT REPRESENTATION, COVENANT, OR WARRANTY OF ANY KIND (WHETHER EXPRESS, IMPLIED, OR, TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, STATUTORY) BY SELLER.  AS A MATERIAL PART OF THE CONSIDERATION FOR THIS AGREEMENT, PURCHASER AGREES TO ACCEPT THE PROPERTY ON AN “AS IS” AND “WHERE IS” BASIS, WITH ALL FAULTS, AND WITHOUT ANY REPRESENTATION OR WARRANTY, ALL OF WHICH SELLER HEREBY DISCLAIMS, EXCEPT FOR SELLER’S WARRANTIES AND SELLER’S COVENANTS.  EXCEPT FOR SELLER’S WARRANTIES, NO WARRANTY OR REPRESENTATION IS MADE BY SELLER AS TO (A) FITNESS FOR ANY PARTICULAR PURPOSE, (B) MERCHANTABILITY, (C) DESIGN, (D) QUALITY, (E) CONDITION, (F) OPERATION OR INCOME, (G) COMPLIANCE WITH DRAWINGS OR SPECIFICATIONS, (H) ABSENCE OF DEFECTS, (I) ABSENCE OF HAZARDOUS OR TOXIC SUBSTANCES, (J) ABSENCE OF FAULTS, (K) FLOODING, OR (L) COMPLIANCE WITH LAWS AND REGULATIONS INCLUDING, WITHOUT LIMITATION, THOSE RELATING TO HEALTH, SAFETY, AND THE ENVIRONMENT.  WITHOUT LIMITATION ON SELLER’S WARRANTIES AND SELLER’S COVENANTS, PURCHASER ACKNOWLEDGES THAT PURCHASER HAS ENTERED INTO THIS AGREEMENT WITH THE INTENTION OF MAKING AND RELYING UPON ITS OWN INVESTIGATION OF THE PHYSICAL, ENVIRONMENTAL, ECONOMIC USE, COMPLIANCE, AND LEGAL CONDITION OF THE PROPERTY AND THAT PURCHASER IS NOT NOW RELYING, AND WILL NOT LATER RELY, UPON ANY REPRESENTATIONS AND WARRANTIES MADE BY SELLER OR ANYONE ACTING OR CLAIMING TO ACT, BY, THROUGH OR UNDER OR ON SELLER’S BEHALF CONCERNING THE PROPERTY.  WITHOUT LIMITATION ON SELLER’S WARRANTIES AND SELLER’S COVENANTS, AS A MATERIAL PART OF THE CONSIDERATION FOR THIS AGREEMENT, SELLER AND PURCHASER AGREE THAT PURCHASER IS TAKING THE PROPERTY “AS IS” WITH ANY AND ALL LATENT AND PATENT DEFECTS AND THAT THERE IS NO WARRANTY BY SELLER THAT THE PROPERTY IS FIT FOR A PARTICULAR PURPOSE.  PURCHASER ACKNOWLEDGES THAT, EXCEPT AS EXPRESSLY PROVIDED HEREIN, IT IS NOT RELYING UPON ANY REPRESENTATION, STATEMENT OR OTHER ASSERTION WITH RESPECT TO THE PROPERTY CONDITION, BUT IS RELYING UPON THE EXAMINATION OF THE PROPERTY.  PURCHASER TAKES THE PROPERTY UNDER THE EXPRESS UNDERSTANDING THAT, EXCEPT AS EXPRESSLY PROVIDED HEREIN, THERE ARE NO EXPRESS OR IMPLIED WARRANTIES (EXCEPT SELLER’S WARRANTIES).  THE PROVISIONS OF THIS PARAGRAPH 2.7 SHALL SURVIVE INDEFINITELY ANY CLOSING OR TERMINATION OF THIS AGREEMENT AND SHALL NOT BE MERGED INTO THE CLOSING DOCUMENTS.
Purchaser’s
   Initials:      /s/ A.K.

ARTICLE 3:     TITLE AND SURVEY REVIEW
3.1    Delivery of Title Report.  No later than May 15, 2018, Seller shall cause to be delivered to Purchaser a preliminary report or title commitment issued by the Title Company (the “Title Report”), covering the Property, together with copies of all documents referenced in the Title Report and a survey (the “Survey”) of the Property.
3.2    Title Review and Cure.  Purchaser shall notify Seller in writing of any title objections no later than on May 22, 2018 (the “Objection Deadline”).  Seller shall have no obligation to cure any title objections except monetary liens created based on the agreements of Seller (excluding any inchoate (i.e., “unfiled”) liens related to the Ongoing Work, collectively, “Seller Liens”), which Seller Liens Seller shall cause to be released at the Closing.  Seller may, but shall not be obligated to, attempt to cure by the Closing Date any title objections noted by Purchaser other than Seller Liens.  If Seller elects not to cure any title objection, or fails to cure any title objection by the Closing Date, in each case other than Seller Liens, then Purchaser shall either (i) terminate this Agreement by written notice to Seller given on or before 10 days after receipt of any notice by Seller that it elects not to cure or cannot cure any title objections, if earlier, the Closing Date, and the Earnest Money shall be refunded to Purchaser, or (ii) waive such title objections, in which event the Closing shall occur and Purchaser shall accept title to the Property subject to such title condition, subject to Seller’s foregoing obligation to cause all Seller Liens to be released.  Failure to so terminate shall constitute Purchaser’s election to proceed under clause (ii).  Notwithstanding anything contained herein, if the Title Report or the Survey are re-issued or updated after the Objection Deadline, Purchaser shall have the right to object (each, a “New Objection”) to any 

additional material or adverse matter disclosed or contained (each, a “New Title Document Matter”) in any such update (but excluding any matters related to the Public Improvements).  If Seller is unable or unwilling to cure any such New Title Document Matter to the sole satisfaction of Purchaser (in Purchaser’s sole and absolute discretion) within the lesser of 5 days following receipt by Seller of a New Objection or the Closing Date, Purchaser shall have the right either to (a) terminate this Agreement by written notice to Seller given on or before 10 days after receipt of any notice by Seller that it elects not to cure or cannot cure any title objections, if earlier, the Closing Date, and the Earnest Money shall be refunded to Purchaser, or (b) waive such title objections, in which event the Closing shall occur and Purchaser shall accept title to the Property subject to such title condition, subject to Seller’s foregoing obligation to cause all Seller Liens to be released.  Failure to so terminate shall constitute Purchaser’s election to proceed under clause (b).  Those items approved by Purchaser or deemed approved by Purchaser are hereinafter referred to as the “Permitted Exceptions.”
3.3    Title Policy.  At Closing, as a condition to Purchaser’s obligation to close, the Title Company shall deliver to Purchaser a 2006 ALTA form of extended coverage Owner’s Policy of Title Insurance (the “Title Policy”), issued by the Title Company, dated the date and time of recording of the Deed in the amount of the Purchase Price, insuring Purchaser as owner of fee simple title to the Property and subject only to the Permitted Exceptions and without exception for any Seller Liens.  If the foregoing condition is not satisfied at Closing, Purchaser may elect to terminate this Agreement, whereupon the Earnest Money shall be immediately released to Purchaser, and neither party shall have any further rights or liabilities hereunder except for those provisions which survive the termination of this Agreement.  The Title Policy may be delivered after Closing if that is customary in the locality and the Title Company irrevocably commits at Closing to so deliver the Title Policy.
ARTICLE 4:     OPERATIONS AND RISK OF LOSS
4.1    Ongoing Operations.  During the pendency of this Agreement, Seller shall carry on its business and activities relating to the Property substantially in the same manner as it did before the Effective Date.  Seller shall maintain all casualty and liability insurance in place as of the Effective Date with respect to the Property in amounts and with deductibles substantially the same as existing on the Effective Date.
4.2    Performance under Leases and Service Contracts.  During the pendency of this Agreement, Seller will perform its material obligations under the Leases and Service Contracts and other agreements that may affect the Property.
4.3    Contracts.  During the pendency of this Agreement, Seller will not modify any Service Contracts or enter into any contract or agreement that will be an obligation affecting the Property subsequent to the Closing, except contracts entered into in the ordinary course of business required to deal with emergency situations that are terminable without cause on 30 days’ notice,  without the prior consent of the Purchaser, which shall not be unreasonably withheld or delayed prior to the end of the Due Diligence Period and which may be given or withheld in Purchaser’s sole discretion thereafter.  Seller agrees to terminate by written notice to the other party thereto and as otherwise required pursuant thereto, effective as of the Closing, all of the contracts that Purchaser does not, by written notice to Seller given on or prior to the expiration of the Due Diligence Period, elect to assume.  All contracts that Purchaser elects to assume by written notice to Seller given on or prior to the expiration of the Due Diligence Period shall constitute “Assumed Service Contracts.”  Any property management and leasing contracts for the Property shall be terminated prior to Closing, with the exception of the Leasing Commission Agreement.  For purposes of clarification, the Leasing Commission Agreement, subject to the provisions of Section 5.2(d), shall be assigned to Purchaser or assumed by Purchaser at Closing.  Seller shall pay all termination costs, liquidated damages, fees and/or expenses related to contracts that do not constitute Assumed Service Contracts.  Notwithstanding the foregoing, Seller shall not terminate the Ongoing Work Contract (hereinafter defined), provided that Seller shall remain solely obligated under the Ongoing Work Contract, it being understood and agreed that Purchaser shall have no liability or obligations under the Ongoing Work Contract.
4.4    Leasing Arrangements.   During the pendency of this Agreement, Seller shall not, without Purchaser’s consent (which shall not be unreasonably withheld or delayed prior to the end of the Due Diligence Period and which may be given or withheld in Purchaser’s sole discretion thereafter), enter into new leases or amendments, expansions or renewals of existing Leases.  Prior to the end of the Due Diligence Period, Purchaser shall be deemed to have consented to any new lease or amendment, expansion, or renewal of an existing Lease if it has not notified Seller specifying with particularity the matters to which Purchaser reasonably objects, within 5 days after its receipt of Seller’s written request for consent, together with a copy of the Lease, amendment, expansion, or renewal and any and all related leasing commission agreements and obligations.  At Closing, Purchaser shall reimburse Seller to the extent provided in Paragraph 6.2 for commissions and the cost of tenant improvements paid by Seller with respect to new leases and amendments, expansions or renewals of existing Leases that were entered into pursuant to this Paragraph 4.4 and shall assume in writing Seller’s obligation under such commission agreements and contracts for tenant improvements if and to the extent expressly identified pursuant to this Paragraph 4.4 and approved or deemed approved by Purchaser pursuant to this Paragraph 4.4 (any such commission agreements, the “New Commission Agreements”).  If the rent commencement 

date of any such new lease or expansion or renewal of any existing Lease falls before the Closing Date, the amount of commission and tenant improvements reimbursable by Purchaser shall be in the proportion that the length of the period from the rent commencement date to the Closing Date bears to the length of the period from the Closing Date to the end of the noncancellable term applicable to such Lease, expansion or renewal.
4.5    Damage or Condemnation.  Risk of loss resulting from any condemnation or eminent domain proceeding which is commenced or has been threatened before the Closing, and risk of loss to the Property due to fire, flood or any other cause before the Closing, shall remain with Seller.  If before the Closing the Property or any portion thereof shall be materially damaged, or if the Property or any portion thereof shall be subjected to a bona fide threat of condemnation or shall become the subject of any proceedings, judicial, administrative or otherwise, with respect to the taking by eminent domain or condemnation, then Purchaser may terminate this Agreement by written notice to Seller given within 5 days after Purchaser learns of the damage or taking, in which event the Earnest Money shall be returned to Purchaser.  If the Closing Date is within the aforesaid 5-day period, then Closing shall be extended to the next business day following the end of said 5-day period.  If no such election is made, and in any event if the damage is not material, this Agreement shall remain in full force and effect and the purchase contemplated herein, less any interest taken by eminent domain or condemnation, shall be effected with no further adjustment, and upon the Closing of this purchase, Seller shall assign, transfer and set over to Purchaser all of the right, title and interest of Seller in and to any awards that have been or that may thereafter be made for such taking, and Seller shall assign, transfer and set over to Purchaser any insurance proceeds that may thereafter be made for such damage or destruction giving Purchaser a credit at Closing for any deductible or self-insured or uninsured amount under such policies.  For the purposes of this paragraph, the phrases “Material damage” and “Materially damaged” means (i) damage reasonably exceeding $250,000 to repair, (ii) damage resulting in material access to the Property, or a material portion of the parking, being permanently destroyed, (iii) damage that is self-insured or uninsured (unless Seller elects to give Purchaser a full credit for any such amount), or (iv) damage that would give rise to the right of any tenant to terminate its Lease, which right such tenant has not irrevocably waived in writing. 
4.6    Ongoing Work.  Seller and Purchaser acknowledge that Seller is in the process of causing the completion of the work described in the Construction Addendum to the Maintenance Supply Lease (collectively, the “Ongoing Work”) pursuant to the Ongoing Work Contract. Seller covenants and agrees to diligently pursue the completion of the Ongoing Work in accordance with the Ongoing Work Contract and the Maintenance Supply Lease and in compliance with all applicable laws and regulations.  Prior to the Closing, Seller shall deliver to Purchaser and the Title Company interim lien waivers (on a 30-day trailing basis) with respect to all portions of the Ongoing Work completed prior to the Closing.  Following the Closing, Seller’s performance of the Ongoing Work shall be pursuant to an Ongoing Work Escrow Agreement (the "Holdback Agreement”), which shall be in the form attached hereto as Exhibit D.  To secure Seller’s obligation to complete the Ongoing Work, an amount estimated to be 125% of the cost of the Ongoing Work (based on evidence satisfactory to Purchaser in its reasonable discretion) which remains to be completed shall be withheld from Seller’s proceeds at Closing and placed into escrow with Escrow Agent as a holdback (the “Ongoing Work Holdback”).  The Ongoing Work Holdback shall be disbursed by Escrow Agent in accordance with a Holdback Agreement.  Purchaser and Seller shall deliver or cause to be delivered at Closing the fully-executed Holdback Agreement.  Upon completion of the Ongoing Work, Seller shall assign to Purchaser all guaranties and warranties received by Seller from any contractor, manufacturer or other person in connection with the construction of the Ongoing Work.  The obligations of Seller hereunder shall survive the Closing.  
4.7    Conveyance of Public Improvements.  In connection with Seller’s development of the Property, Seller has built certain public improvements (i.e., gravity sanitary sewer, force main and lift station, and potable water system, collectively, the “Public Improvements”).  Prior to Closing, and notwithstanding anything in this Agreement to the contrary, Seller shall convey the Public Improvements to the City of Ocoee, a Florida municipal corporation (the “City”) and concurrently enter into that certain Maintenance, Materials, And Workmanship Agreement With Letter of Credit (the “Maintenance Agreement”) between Seller (as “Developer”) and the City in the form delivered to Purchaser pursuant to Paragraph 2.1 of this Agreement.  At Closing Seller shall assign its obligations under the Maintenance Agreement first arising following Closing to Purchaser and Purchaser shall assume the same, and, no later than 30 days after Closing, Purchaser shall replace Seller’s letter of credit (approximately $75,000) posted with the City and request that the City promptly return Seller’s letter of credit to Seller.  The provisions of this paragraph shall survive indefinitely any Closing of this Agreement and shall not be merged into the Closing documents.  
4.8    Marketing.  Seller shall not actively market the Property for sale, and not solicit, accept, or enter into any negotiations or agreements with respect to the sale or disposition of any or all of the Property, or any interest therein (except as expressly permitted by this Agreement), or sell, contribute or assign any interest in the Property.

ARTICLE 5:     CLOSING
5.1    Closing.  The consummation of the transaction contemplated herein (“Closing”) shall occur on the Closing Date at the offices of the Escrow Agent whereby Seller, Purchaser and their attorneys need not be physically present and may deliver documents by overnight air courier or other means.
5.2    Conditions to the Parties’ Obligations to Close.  The obligation of Seller, on the one hand, and Purchaser, on the other hand, to consummate the transaction contemplated hereunder is contingent upon the following:
(a)    The other party’s representations and warranties contained herein shall be true and correct in all material respects as of the date of this Agreement and the Closing Date, subject to any Seller modifications hereafter made to a Property Representation (as defined and provided for in Paragraph 7.1);
(b)    As of the Closing Date, the other party shall have performed its obligations hereunder and all deliveries to be made at Closing have been tendered;
(c)    There shall exist no actions, suits, arbitrations, claims, attachments, proceedings, assignments for the benefit of creditors, insolvency, bankruptcy, reorganization or other proceedings, pending or threatened against the other party that would materially and adversely affect the other party’s ability to perform its obligations under this Agreement; 
(d)    The Leasing Commission Agreement shall have either been terminated (in which event such agreement shall not be assigned to Purchaser hereunder), or, Seller shall have amended and restated the Leasing Commission Agreement in its entirety in form and substance acceptable to Purchaser in its sole discretion (in which event the Leasing Commission Agreement, as so amended and restated, shall be assigned to Purchaser at Closing); and
(e)    There shall exist no pending or threatened action, suit or proceeding with respect to the other party before or by any court or administrative agency which seeks to restrain or prohibit, or to obtain damages or a discovery order with respect to, this Agreement or the consummation of the transaction contemplated hereby.
So long as a party is not in default hereunder, if any condition to such party’s obligation to proceed with the Closing hereunder has not been satisfied as of the Closing Date, such party may, in its sole discretion, terminate this Agreement by delivering written notice to the other party on or before the Closing Date, or elect to close, notwithstanding the non-satisfaction of such condition, in which event such party shall be deemed to have waived any such condition.  If such party elects to close, notwithstanding the nonsatisfaction of such condition, there shall be no liability on the part of the other party for breaches of representations and warranties of which the party electing to close had knowledge as of the Closing.
5.3    Seller’s Deliveries in Escrow.  On or before the Closing Date, Seller shall deliver in escrow to the Escrow Agent the following:
(a)    Deed.  A special warranty deed (the “Deed”) in the form attached hereto as Exhibit F, executed and acknowledged by Seller, conveying, to Purchaser Seller’s title to the Property, subject only to the Permitted Exceptions.  Any discrepancy between the description of the Property in the deed from Seller’s immediate grantor and in the Deed shall be quitclaimed by Seller;
(b)    Assignment of Leases and Contracts and Bill of Sale.  An Assignment of Leases and Contracts and Bill of Sale in the form of Exhibit C attached hereto, executed by Seller;
(c)    State Law Disclosures.  Such disclosures and reports as are required by applicable state and local law in connection with the conveyance of real property; and
(d)    FIRPTA.  A Foreign Investment in Real Property Tax Act affidavit executed by Seller;
(e)    Title Affidavits.  Seller shall execute and deliver to the Title Company such agreements or statements as may be reasonably required by the Title Company in order to issue the Title Policy, including as may be required by the Title Company in order to issue a gap endorsement and delete all standard exceptions to the Title Policy, including, without limitation, the exceptions related to the parties in possession and mechanics’ liens (including, without limitation, with respect to the Ongoing Work); and
(f)    Additional Documents.  Any additional documents that Escrow Agent or the Title Company may reasonably require for the proper consummation of the transaction contemplated by this Agreement.

5.4    Purchaser’s Deliveries in Escrow.  On or before the Closing Date, Purchaser shall deliver in escrow to the Escrow Agent the following:
(a)    Purchase Price.  The Purchase Price, less the Earnest Money that is applied to the Purchase Price, plus or minus applicable prorations, deposited by Purchaser with the Escrow Agent in immediate, same‐day federal funds wired for credit into the Escrow Agent’s escrow account.  The initial closing step within the escrow shall be for the Title Company to deliver the Purchase Price to Seller;
(b)    Assignment of Leases and Contracts and Bill of Sale.  An Assignment of Leases and Contracts and Bill of Sale in form of Exhibit C attached hereto, executed by Purchaser;
(c)    State Law Disclosures.  Such disclosures and reports as are required by applicable state and local law in connection with the conveyance of real property; and
(d)    Additional Documents.  Any additional documents that Escrow Agent or the Title Company may reasonably require for the proper consummation of the transaction contemplated by this Agreement.
5.5    Closing Statements/Escrow Fees.  At the Closing, Seller and Purchaser shall deposit with the Escrow Agent executed closing statements consistent with this Agreement in the form required by the Escrow Agent.
5.6    Title Policy.  The Title Policy shall be delivered at Closing as provided in Paragraph 3.3.
5.7    Possession.  Seller shall deliver possession of the Property to Purchaser at the Closing.
5.8    Post-Closing Deliveries.  Immediately after the Closing, Seller shall deliver to the offices of Purchaser’s property manager: the original Leases; copies or originals of all Assumed Service Contracts, receipts for deposits, and unpaid bills; all keys, if any, used in the operation of the Property; and, if in Seller’s possession or control, any “as-built” plans and specifications of the Improvements.
5.9    Notice to Tenants.  Seller and Purchaser shall execute at Closing, and deliver to each tenant immediately after the Closing, notices regarding the sale in substantially in the form of Exhibit D attached hereto, or such other form as may be required by applicable state law.
5.10    Closing Costs.  At Closing, Purchaser shall pay the cost of any title examination and the premium for the Title Policy, the cost of the Survey up to $20,000, one half of all escrow fees and the cost of recording the Deed.  Seller shall pay the cost of the Survey in excess of $20,000, any sales, gross receipts, compensating, documentary, excise, transfer, deed or similar taxes and fees imposed in connection with this transaction, all costs of recording instruments to release any Seller’s Liens or to cure other title matters Seller has elected to cure, and one half of all escrow fees.  Each party shall pay its own attorneys’ fees.
5.11    Close of Escrow.  Upon satisfaction or completion of the foregoing conditions and deliveries, the parties shall direct the Escrow Agent to immediately record and deliver the documents described above to the appropriate parties and make disbursements according to the closing statements executed by Seller and Purchaser.
ARTICLE 6:     PRORATIONS
6.1    Prorations.  If the Purchase Price is received by the Escrow Agent by 1:00 p.m. (Eastern Standard Time) on the Closing Date, the day of Closing shall belong to Purchaser and all prorations hereinafter provided to be made as of the Closing shall each be made as of the end of the day before the Closing Date.  If the cash portion of the Purchase Price not so received by the Escrow Agent by 1:00 p.m. (Eastern Standard Time) on the Closing Date, then the day of Closing shall belong to Seller and such proration shall be made as of the end of the day that is the Closing Date.  In each such proration set forth below, the portion thereof applicable to periods beginning as of Closing shall be credited to Purchaser or charged to Purchaser as applicable and the portion thereof applicable to periods ending as of Closing shall be credited to Seller or charged to Seller as applicable.
(a)    Collected Rent.  All collected rent (excluding tenant reimbursements for Operating Expenses) and other collected income (and any applicable state or local tax on rent) under Leases in effect on the Closing Date shall be prorated as of the Closing.  Seller shall be charged with any rent and other income collected by Seller before Closing but applicable to any period of time after Closing.  Uncollected rent and other income shall not be prorated.  Purchaser (and Seller, if collected by Seller) shall apply rent and other income from tenants that are collected after the Closing first to the obligations then owing to Purchaser for its period of 

ownership and to costs of collection, remitting the balance, if any, to Seller.  Any prepaid rents for the period following the Closing Date shall be paid over by Seller to Purchaser.  For a period of 90 days following the Closing, Purchaser will make reasonable efforts, without suit or obligation to declare default or incur any costs, to collect any rents applicable to the period before Closing.  Seller may pursue collection as to any rent not collected by Purchaser within 6 months following the Closing Date, provided that Seller shall have no right to terminate any Lease or any tenant’s occupancy under any Lease in connection therewith.
(b)    Operating Costs.  Seller, as landlord under the Leases, is currently collecting from tenants under the Leases additional rent to cover taxes, insurance, utilities (to the extent not paid directly by tenants), common area maintenance and other operating costs and expenses (collectively, “Operating Costs”) in connection with the ownership, operation, maintenance and management of the Property.  Seller and Purchaser shall each receive a debit or credit, as the case may be, for the difference between the aggregate tenants’ current account balances for Operating Costs and amount of Operating Costs reimbursable to Seller.  Operating Costs for Seller’s period of ownership shall be reasonably estimated by the parties if final bills are not available.  Operating Costs that are not payable by tenants either directly or reimbursable under the Leases shall be prorated between Seller and Purchaser.
(c)    Taxes and Assessments.  Real estate taxes and assessments imposed by governmental authority that are not yet due and payable and that are not reimbursable by tenants under the Leases as Operating Costs and prorated pursuant to Paragraph 6.1(b) shall be prorated as of the Closing based upon the most recent ascertainable assessed values and tax rates.  Seller shall receive a credit for any taxes and assessments paid by Seller (other than through application of additional rents for Operating Costs) and applicable to any period after the Closing.
(d)    Final Adjustment After Closing.  If final prorations cannot be made at Closing for any item being prorated under this Paragraph 6.1, then Purchaser and Seller agree to allocate such items on a fair and equitable basis as soon as invoices or bills are available and applicable reconciliation with tenants have been completed, with final adjustment to be made as soon as reasonably possible after the Closing, to the effect that income and expenses are received and paid by the parties on an accrual basis with respect to their period of ownership.  Payments in connection with the final adjustment shall be due within 30 days of written notice (together with reasonable back-up therefor).  
6.2    Leasing Costs, Leasing Commissions and Service Contracts.  At Closing, Purchaser shall assume the obligation to pay all leasing commissions due after the Closing Date and identified on Schedule 6.2 attached hereto or that become due after the Closing Date pursuant to any New Commission Agreement (collectively, “Purchaser’s Leasing Commissions”).  All leasing commissions with respect to the Leases other than Purchaser’s Leasing Commissions shall be paid by Seller.  Furthermore, at Closing, Purchaser shall receive a credit at Closing for any “free rent” or abatement periods (for both full and partial abatement of rent) remaining for non-cancellable term under the Leases for periods from and after the Closing Date as identified on Schedule 6.2.  Seller and Purchaser acknowledge that, Base Rent under the Lease with Kramer America, Inc., is partially abated for the period following Closing through June 30, 2018 by an amount equal to $26,908.53 per month.  
6.3    Tenant Deposits.  All tenant security deposits actually received by Seller (and interest thereon if required by law or contract to be earned thereon) and not theretofore applied to tenant obligations under the Leases shall be transferred or credited to Purchaser at Closing.  As of the Closing, Purchaser shall assume Seller’s obligations related to tenant security deposits to the extent so transferred or credited to Purchaser.  
6.4    Utilities.  Purchaser shall be responsible for making any deposits required with utility companies. The readings and billings for utilities will be made if possible as of the day before the Closing Date, in which case Seller shall pay all such bills and no proration shall be made at the Closing with respect to utility bills.  Otherwise, a proration shall be made based upon the parties’ reasonable good faith estimate and a readjustment made within 30 days after the Closing, if necessary.  
6.5    Sale Commissions.  Seller and Purchaser represent and warrant each to the other that they have not dealt with any real estate broker, sales person or finder in connection with this transaction other than Broker.  If this transaction is closed, Seller shall pay Broker in accordance with their separate agreement.  Broker is an independent contractor and is not authorized to make any agreement or representation on behalf of either party.  Except as expressly set forth above, if any claim is made for broker’s or finder’s fees or commissions in connection with the negotiation, execution or consummation of this Agreement or the transactions contemplated hereby, each party shall defend, indemnify and hold harmless the other party from and against any such claim based upon any statement, representation or agreement of such party.
ARTICLE 7:     REPRESENTATIONS AND WARRANTIES
7.1    Seller’s Representations and Warranties.  As a material inducement to Purchaser to execute this Agreement and consummate this transaction, Seller represents and warrants to Purchaser that:

(a)    Organization and Authority.  Seller has been duly organized and is validly existing as a limited liability company, in good standing in the State of Delaware and is qualified to do business in the state in which the Property is located.  Seller has the full right and authority and has obtained any and all consents required to enter into this Agreement and to consummate or cause to be consummated the transactions contemplated hereby.  This Agreement has been, and all of the documents to be delivered by Seller at the Closing will be, authorized and properly executed and constitutes, or will constitute, as appropriate, the valid and binding obligation of Seller, enforceable in accordance with their terms.
(b)    Conflicts and Pending Action.  There is no agreement to which Seller is a party or to Seller’s knowledge binding on Seller which is in conflict with this Agreement.  There is no action or proceeding pending or, to Seller’s knowledge, threatened against Seller of the Property, including condemnation proceedings, which challenges or impairs Seller’s ability to execute or perform its obligations under this Agreement.
(c)    Leases.  Seller has provided to Purchaser true, correct and complete copies of the Leases in all material respects; and the Rent Roll delivered to Purchaser accurately reflects, as of its date, prepaid rent, monetary delinquencies, security deposits, current charges for Operating Costs, and expense recoveries, under such Leases.  Except for any parties in possession pursuant to, and any rights of possession granted under, the Leases shown on the Rent Roll, Seller has not entered into any other leases, subleases, or other occupancy agreements which would  permit or allow for parties in possession of any part of the Property.  Seller has not granted to any party any option, rights of first refusal, license or other similar agreement with respect to a purchase or sale of the Property or any portion thereof or any interest therein.  Seller has no knowledge of and has neither given nor received any written notice of default with respect to any of the Leases.  Except for the Ongoing Work and as expressly stated Schedule 6.2 attached hereto, all leasing commissions due to brokers under any of the Leases, and, all tenant improvement obligations, concessions and other tenant inducements, have been fully paid and satisfied by Seller and no such commissions, obligations, concessions or inducements become payable in the future.    
(d)    Service Contracts.  The list of Service Contracts delivered to Purchaser pursuant to this Agreement is true, correct, and complete as of the date of its delivery.  Neither Seller nor, to Seller’s knowledge, any other party is in material default under any Service Contract.
(e)    Compliance with Law.  Except as disclosed to Purchaser as part of the Property Information, Seller has not received any written notice, sent by any governmental authority or agency having jurisdiction over the Property, that the Property or its use is in violation of any law, ordinance, or regulation in any material respect.
(f)    Taxes.  Seller has not submitted an application for the creation of any special taxing district affecting the Property, or annexation thereby, or inclusion therein.  There is no ongoing appeal with respect to taxes or special assessments on the Property for any year, and any consultants engaged to perform work with respect to appeals of taxes or special assessments on the Property have been paid in full.
(g)    No Contractual or Donative Commitments.  Seller has not made any contractual or donative commitments relating to the Property to any governmental authority, quasi-governmental authority, utility company, community association, homeowners’ association or to any other organization, group, or individual which would impose any obligation upon Purchaser to make any contribution or dedication of money or land, or to construct, install or maintain any improvements of a public or private nature on or off the Property.
(h)    No Actions.  There are no actions, suits, proceedings or claims pending, or to Seller’s knowledge, contemplated or threatened, before any court, commission, regulatory body, administrative agency or other governmental or quasi-governmental body with respect to the Property, or the ability of Seller to consummate the transaction contemplated by this Agreement.
(i)    No Bankruptcy.  No petition in bankruptcy (voluntary or otherwise), attachment, execution proceeding, assignment for the benefit of creditors, or petition seeking reorganization or insolvency, arrangement or other action or proceeding under federal or state bankruptcy law is pending against or contemplated (or, to Seller’s knowledge, threatened) by or against Seller or any general partner or managing member of Seller.
(j)    Non-Foreign Status/Patriot Act.  Seller is not a foreign person, foreign corporation, foreign partnership, foreign trust or foreign estate.  Purchaser has no duty to collect withholding taxes for Seller pursuant to the Foreign Investors Real Property Tax Act of 1980, as amended, or any applicable foreign, state, or local law.  Seller is not a (a) a person or entity that is listed in the Annex to, or is otherwise subject to the provisions of, Executive Order No. 13224 on Terrorist Financing (effective September 24, 2001) (the “Executive Order”); (b) a person or entity owned or controlled by, or acting for or on behalf of any person or entity that is listed in the Annex to, or is otherwise subject to the provisions of, the Executive Order; (c) a person or entity that is named as 

a “specially designated national” or “blocked person” on the most current list published by the U.S. Treasury Department’s Office of Foreign Assets Control (“OFAC”) at its official website, http://www.treas.gov/offices/enforcement/ofac; (d) a person or entity that is otherwise the target of any economic sanctions program currently administered by OFAC; or (e) a person or entity that is affiliated with any person or entity identified in clause (a), (b), (c) and/or (d) above.  To Seller’s knowledge, none of its investors, affiliates or brokers or other agents (if any), acting or benefiting in any capacity in connection with this Agreement is a Prohibited Person.  The assets Seller will transfer to Buyer under this Agreement are not the property of, and are not beneficially owned, directly or indirectly, by a Prohibited Person.  The assets Seller will transfer to Buyer under this Agreement are not the proceeds of specified unlawful activity as defined by 18 U.S.C. §1956(c)(7).
“Seller’s knowledge,” as used in this Agreement means the current actual knowledge of Matthew Roth and Scott Alexander of Seller, without any duty of inquiry or investigation.
Seller’s representations and warranties in subparagraphs (c), (d), (e), (f) and (g) (“Property Representations”) are qualified by any actual knowledge obtained by Purchaser by the expiration of the Due Diligence Period.  Seller may further qualify the Property Representations by notice, specifying with reasonable particularity the facts and circumstances known to Seller that make the applicable Property Representation false, misleading or inaccurate, delivered to Purchaser before the Closing Date.  If Seller delivers a Property Representation notice within less than 3 business days before the Closing, then the Purchaser may by notice to Seller extend the Closing Date to that day which is 3 business days after the date of receipt of the Property Representation notice.  If any Property Representation notice delivered after the Due Diligence Period effects a material adverse change in the matter covered by the applicable Property Representation, then Purchaser, as its sole remedy therefor, (i) may terminate this Agreement by giving written notice to Seller no later than 3 business days after receipt of such Property Representation notice and receive a refund of the Earnest Money, (ii) waive Purchaser’s right to terminate as a result of such change in such Property Representation or (iii) in the event the change in such Property Representation is the result of a default by Seller hereunder, exercise its rights and remedies under Paragraph 8.2 hereof, it being expressly understood that Seller’s provision of such notification shall in no way relieve Seller of any liability for a breach by Seller of any of its representations, warranties, covenants or agreements under this Agreement.  “Purchaser’s knowledge” as used in this Agreement means the current actual knowledge of Betsy Kennett and Matt Breaux, provided that such individuals shall be deemed to have actual knowledge of all information contained in the Property Information provided by Seller to Purchaser on or before May 18, 2018, the Title Report (and any update thereto), the Survey, and any estoppels from Tenant’s under the Leases.
7.2    Purchaser’s Representations and Warranties.  As a material inducement to Seller to execute this Agreement and consummate this transaction, Purchaser represents and warrants to Seller that:
(a)    Organization and Authority.  Purchaser has been duly organized and is validly existing as a limited liability company, in good standing in the State of Delaware.  Purchaser has the full right and authority and has obtained any and all consents required to enter into this Agreement and to consummate or cause to be consummated the transactions contemplated hereby.  This Agreement has been, and all of the documents to be delivered by Purchaser at the Closing will be, authorized and properly executed and constitutes, or will constitute, as appropriate, the valid and binding obligation of Purchaser, enforceable in accordance with their terms.  Notwithstanding the foregoing Purchaser will require approval of its board of directors in order to consummate the acquisition of the Property, which approval shall be deemed to have been obtained if Purchaser does not terminate this Agreement prior to the end of the Due Diligence Period.  
(b)    Conflicts and Pending Action.  There is no agreement to which Purchaser is a party or to Purchaser’s knowledge binding on Purchaser which is in conflict with this Agreement.  There is no action or proceeding pending or, to Purchaser’s knowledge, threatened against Purchaser which challenges or impairs Purchaser’s ability to execute or perform its obligations under this Agreement.
ARTICLE 8:     DEFAULT AND DAMAGES
8.1    Default by Purchaser.  If Purchaser shall default in its obligation to purchase the Property pursuant to this Agreement, Seller shall have the right, as its sole and exclusive remedy, to terminate this Agreement and receive the Earnest Money as liquidated damages to recompense Seller for time spent, labor and services performed, and the loss of its bargain.  Purchaser and Seller agree that it would be impracticable or extremely difficult to affix damages if Purchaser so defaults and that the Earnest Money, together with the interest thereon, represents a reasonable estimate of Seller’s damages.  Seller agrees to accept the Earnest Money as Seller’s total damages and relief hereunder if Purchaser defaults in its obligation to close hereunder.  If Purchaser does so default, this Agreement shall be terminated and Purchaser shall have no further right, title, or interest in or to the Property.

8.2    Default by Seller.  If Seller defaults in its obligation to sell the Property under this Agreement or otherwise defaults in any material obligation under this Agreement (which remains uncured as of the Closing Date, provided, Seller shall have not less than 5 days’ notice with opportunity to cure, and the Closing Date shall be extended if necessary to afford such cure period), Purchaser’s sole remedy shall be to elect one of the following:  (a) to terminate this Agreement, in which event Purchaser shall be entitled to the return by the Title Company to Purchaser of the Earnest Money and Seller shall reimburse Purchaser for Purchaser’s actual out-of-pocket costs and expenses (including reasonable attorneys’ fees, costs and disbursements) related to the negotiation of this Agreement and the transactions contemplated hereby and Purchaser’s due diligence, up to a maximum of $125,000.00, or (b) to bring a suit for specific performance provided that any suit for specific performance must be brought within 90 days of Seller’s default, to the extent permitted by law, Purchaser waiving the right to bring suit at any later date.  This Agreement confers no present right, title or interest in the Property to Purchaser and Purchaser agrees not to file a lis pendens or other similar notice against the Property except in connection with, and after, the proper filing of a suit for specific performance.  Notwithstanding the foregoing, nothing contained in this Paragraph 8.2 shall limit the rights and remedies of Purchaser with respect to any obligations or liabilities of Seller that survive the Closing or any termination of this Agreement.  
ARTICLE 9:     ESCROW INSTRUCTIONS
9.1    Investment and Use of Funds.  The Escrow Agent shall invest the Earnest Money in government insured interest‐bearing accounts satisfactory to Purchaser and Seller, shall not commingle the Earnest Money with any funds of the Escrow Agent or others, and shall promptly provide Purchaser and Seller with confirmation of the investments made.  If the Closing under this Agreement occurs, the Escrow Agent shall apply the Earnest Money against the Purchase Price due Seller at Closing.
9.2    Agreement Termination.  Upon a termination of this Agreement, either party  to this Agreement (the “Terminating Party”) may give written notice to the Escrow Agent and the other party (the “Non-Terminating Party”) of such termination and the reason for such termination.  Such request shall also constitute a request for the release of the Earnest Money to the Terminating Party.  The Non-Terminating Party shall then have five business days in which to object in writing to the release of the Earnest Money to the Terminating Party.  If the Non-Terminating Party provides such an objection, then the Escrow Agent shall retain the Earnest Money until it receives written instructions executed by both Seller and Purchaser as to the disposition and disbursement of the Earnest Money, or until ordered by final court order, decree or judgment, which is not subject to appeal, to deliver the Earnest Money to a particular party, in which event the Earnest Money shall be delivered in accordance with such notice, instruction, order, decree or judgment.  Notwithstanding the foregoing, in the event Purchaser terminates this Agreement in accordance with Paragraph 2.6, the Escrow Agent shall immediately release the Earnest Money to Purchaser.
9.3    Interpleader.  Seller and Purchaser mutually agree that in the event of any controversy regarding the Earnest Money, unless mutual written instructions are received by the Escrow Agent directing the Earnest Money’s disposition, the Escrow Agent shall not take any action, but instead shall await the disposition of any proceeding relating to the Earnest Money or, at the Escrow Agent’s option, the Escrow Agent may interplead all parties and deposit the Earnest Money with a court of competent jurisdiction in which event the Escrow Agent may recover all of its court costs and reasonable attorneys’ fees.  Seller or Purchaser, whichever loses in any such interpleader action, shall be solely obligated to pay such costs and fees of the Escrow Agent, as well as the reasonable attorneys’ fees of the prevailing party in accordance with the other provisions of this Agreement.
9.4    Liability of Escrow Agent.  The parties acknowledge that the Escrow Agent is acting solely as a stakeholder at their request and for their convenience, that the Escrow Agent shall not be deemed to be the agent of either of the parties, and that the Escrow Agent shall not be liable to either of the parties for any action or omission on its part taken or made in good faith, and not in disregard of this Agreement, but shall be liable for its negligent acts and for any loss, cost or expense incurred by Seller or Purchaser resulting from the Escrow Agent’s mistake of law respecting the Escrow Agent’s scope or nature of its duties.  Seller and Purchaser shall jointly and severally indemnify and hold the Escrow Agent harmless from and against all costs, claims and expenses, including reasonable attorneys’ fees, incurred in connection with the performance of the Escrow Agent’s duties hereunder, except with respect to actions or omissions taken or made by the Escrow Agent in bad faith, in disregard of this Agreement or involving negligence on the part of the Escrow Agent.
ARTICLE 10:     MISCELLANEOUS
10.1    Parties Bound.  Except for an assignment pursuant to this Paragraph or Paragraph 10.16, neither party may assign this Agreement without the prior written consent of the other, and any such prohibited assignment shall be void.  Subject to the foregoing, this Agreement shall be binding upon and inure to the benefit of the respective legal representatives, successors, assigns, heirs, and devisees of the parties. Purchaser may assign all or any portion of this Agreement or its rights hereunder, or delegate all or any portion of its duties or obligations to an affiliate without Seller’s written consent, provided that Purchaser gives Seller notice of the assignment or delegation and that such assignment or delegation does not relieve Purchaser of its obligations hereunder.  

For purposes of this Paragraph 10.1, an affiliate of Purchaser shall include (a) any entity that is owned, controlled by or is under common control with Purchaser (a “Purchaser Control Entity”), (b) any entity in which one or more Purchaser Controlled Entities directly or indirectly is the general partner (or similar managing partner, member or manager) or owns more than 50% of the economic interests of such entity, and (c) any entity (or subsidiary thereof) that is advised by an affiliate of Industrial Property Advisors LLC.
10.2    Confidentiality.  Neither party shall make a public announcement of the transactions contemplated herein, before or for a period of two years after the Closing, without the prior written consent of the other.  All of the terms and conditions of this Agreement are confidential, and neither party shall disclose such terms and conditions or the existence of this Agreement to anyone, provided that each party may disclose this Agreement’s terms and conditions and the existence of this Agreement (a) to its affiliates and its legal counsel and other agents and representatives, including prospective partners and lenders, and (b) as required by law, rule, or regulation, including without limitation, any disclosure required by the United States Securities and Exchange Commission or the Australian Stock Exchange.  Purchaser shall not record this Agreement or any memorandum of this Agreement.
10.3    Headings.  The article and paragraph headings of this Agreement are for convenience only and in no way limit or enlarge the scope or meaning of the language hereof.
10.4    Invalidity and Waiver.  If any portion of this Agreement is held invalid or inoperative, then so far as is reasonable and possible the remainder of this Agreement shall be deemed valid and operative, and effect shall be given to the intent manifested by the portion held invalid or inoperative.  The failure by either party to enforce against the other any term or provision of this Agreement shall not be deemed to be a waiver of such party’s right to enforce against the other party the same or any other such term or provision in the future.
10.5    Governing Law.  This Agreement shall, in all respects, be governed, construed, applied, and enforced in accordance with the law of the state in which the Property is located.
10.6    Survival.  Unless otherwise expressly stated in this Agreement, each of the covenants, obligations, representations, and agreements contained in this Agreement shall survive the Closing and the execution and delivery of the Deed required hereunder only for a period of 12 months immediately following the Closing Date; provided, however the provisions of Paragraphs 6.1(d), 6.3, 6.5, and 9.1 and Article 10 shall survive the termination of this Agreement or the Closing, whichever occurs, and shall not be merged, until the applicable statute of limitations with respect to any claim, cause of action, suit or other action relating thereto shall have fully and finally expired.  Any claim based upon a misrepresentation or a breach of a warranty contained in Article 7 of this Agreement shall be actionable or enforceable if and only if:  (i) notice of such claim is given to the party which allegedly made such misrepresentation or breached such covenant, obligation, warranty or agreement within 12 months after the Closing Date; and (ii) the amount of damages or losses as a result of such claim suffered or sustained by the party making such claim exceeds $35,000; and provided further that the aggregate liability of Seller for any and all such misrepresentations or a breaches of a warranty contained in Article 7 of this Agreement shall be limited to the amount of $1,000,000.00, provided the foregoing limitation shall not apply to attorneys’ fees incurred by Purchaser if Purchaser is the prevailing party in any action or proceeding based on any such misrepresentation or breach.
10.7    No Third Party Beneficiary.  This Agreement is not intended to give or confer any benefits, rights, privileges, claims, actions, or remedies to any person or entity as a third party beneficiary, decree, or otherwise.
10.8    Entirety and Amendments.  This Agreement embodies the entire agreement between the parties and supersedes all prior agreements and understandings relating to the Property except for any confidentiality agreement binding on Purchaser, which shall not be superseded by this Agreement.  This Agreement may be amended or supplemented only by an instrument in writing executed by the party against whom enforcement is sought.
10.9    Time.  Time is of the essence in the performance of this Agreement.
10.10    Attorneys’ Fees.  Should either party employ attorneys to enforce any of the provisions hereof, the party against whom any final judgment is entered agrees to pay the prevailing party all reasonable costs, charges, and expenses, including attorneys’ fees, expended or incurred in connection therewith.
10.11    Notices.  All notices required or permitted hereunder shall be in writing and shall be served on the parties at the addresses set forth in Paragraph 1.1.  Any such notices shall be either (a) sent by overnight delivery using a nationally recognized overnight courier, in which case notice shall be deemed delivered one business day after deposit with such courier, (b) sent by electronic mail, in which case notice shall be deemed delivered upon transmission, or (c) sent by personal delivery, in which case 

notice shall be deemed delivered upon receipt.  Any notice sent by electronic mail or personal delivery and delivered after 5:00 p.m. (Eastern Standard Time) shall be deemed received on the next business day.  A party’s address may be changed by written notice to the other party; provided, however, that no notice of a change of address shall be effective until actual receipt of such notice.  Copies of notices are for informational purposes only, and a failure to give or receive copies of any notice shall not be deemed a failure to give notice.
10.12    Construction.  The parties acknowledge that the parties 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 exhibits or amendments hereto.
10.13    Calculation of Time Periods.  Unless otherwise specified, in computing any period of time described herein, 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 at, unless such last day is a Saturday, Sunday or legal holiday for national banks in the location where the Property is located, in which event the period shall run until the end of the next day which is neither a Saturday, Sunday, or legal holiday.  The last day of any period of time described herein shall be deemed to end at 5:00 p.m. (Eastern Standard Time).
10.14    Procedure for Indemnity.  The following provisions govern actions for indemnity under this Agreement.  Promptly after receipt by an indemnitee of notice of any claim, such indemnitee will, if a claim in respect thereof is to be made against the indemnitor, deliver to the indemnitor written notice thereof and the indemnitor shall have the right to participate in and, if the indemnitor agrees in writing that it will be responsible for any costs, expenses, judgments, damages, and losses incurred by the indemnitee with respect to such claim, to assume the defense thereof, with counsel mutually satisfactory to the parties; provided, however, that an indemnitee shall have the right to retain its own counsel, with the fees and expenses to be paid by the indemnitor, if the indemnitee reasonably believes that representation of such indemnitee by the counsel retained by the indemnitor would be inappropriate due to actual or potential differing interests between such indemnitee and any other party represented by such counsel in such proceeding.  The failure of indemnitee to deliver written notice to the indemnitor within a reasonable time after indemnitee receives notice of any such claim shall relieve such indemnitor of any liability to the indemnitee under this indemnity only if and to the extent that such failure is prejudicial to its ability to defend such action, and the omission so to deliver written notice to the indemnitor will not relieve it of any liability that it may have to any indemnitee other than under this indemnity.  If an indemnitee settles a claim without the prior written consent of the indemnitor, then the indemnitor shall be released from liability with respect to such claim unless the indemnitor has unreasonably withheld such consent.
10.15    Execution in Counterparts.  This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, and all of such counterparts shall constitute one Agreement.  To facilitate execution of this Agreement, the parties may execute and exchange by PDF counterparts of the signature pages.
10.16    Section 1031 Exchange.  Seller may consummate the purchase of the Property as part of a so-called like kind exchange (the “Exchange”) pursuant to § 1031 of the Internal Revenue Code of 1986, as amended (the “Code”), provided that:  (i) the Closing shall not be delayed or affected by reason of the Exchange nor shall the consummation or accomplishment of the Exchange be a condition precedent or condition subsequent to Seller’s obligations under this Agreement; (ii) Seller shall effect the Exchange through an assignment of its rights under this Agreement to a qualified intermediary; and (iii) Purchaser shall not be required to take an assignment of the purchase agreement for the replacement property or be required to acquire or hold title to any real property for purposes of consummating the Exchange.  Purchaser shall not by this agreement or acquiescence to the Exchange (1) have its rights under this Agreement affected or diminished in any manner or (2) be responsible for compliance with or be deemed to have warranted to Seller that the Exchange in fact complies with § 1031 of the Code.
10.17    WAIVER OF JURY TRIAL.  TO THE EXTENT PERMITTED BY APPLICABLE LAW, THE PARTIES HEREBY WAIVE ANY RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.
10.18    Radon Gas Notice.  Radon is a naturally occurring radioactive gas that, when it has accumulated in a building in sufficient quantities, may present health risks to persons who are exposed to it over time. Levels of radon that exceed federal and state guidelines have been found in buildings in the state of Florida. Additional information regarding radon and radon testing may be obtained from your county health department.
10.19    Post-Closing Access to Records.  Upon receipt by Seller of Purchaser’s reasonable written request at any time and from time to time within a period from the Closing until the later of 2 years after Closing to enable Purchaser to either (i) comply with any financial reporting requirements applicable to Purchaser or (ii) confirm or complete any tenant reconciliations 

under the Leases, Seller shall, at Seller’s principal place of business, during Seller’s normal business hours, make all of Seller’s records relating to the Property available to Purchaser for inspection and copying (at Purchaser’s sole cost and expense).
10.20    Information and Audit Cooperation.  To the extent necessary to enable Purchaser to comply with any financial reporting requirements applicable to Purchaser and upon at least 3 Business Days prior written notice to Seller, within 90 days after the Closing Date, Seller shall reasonably cooperate (at no cost or liability to Seller) and allow Purchaser’s auditors to audit the trial balance related to the operation of the Property for the calendar year prior to the Closing Date and for the portion of the calendar year starting on January 1 through the Closing Date.  Other than any representation, warranty or covenant otherwise set forth in this Agreement or the documents delivered at Closing, Seller makes no representations, warranties or covenants with respect to the trial balance or the books and records which may be reviewed in auditing the same, and Purchaser releases and waives any liability or claims against Seller related to the trial balance or the books and records which may be reviewed and audited.
[SIGNATURE PAGE FOLLOWS]

SIGNATURE PAGE TO 
PURCHASE AND SALE AGREEMENT 
BY AND BETWEEN 
BPG OCOEE 1, LLC  
AND 
BCI IV ACQUISITIONS LLC
IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year written below.
BPG OCOEE 1, LLC, 
a Delaware limited liability company

By: /s/ Scott H. Alexander
Name: Scott H. Alexander
Date: May 16, 2018        Title: President

“Seller”

BCI IV ACQUISITIONS LLC, 
a Delaware limited liability company

By:         BCI IV Operating Partnership LP, a Delaware limited partner, its sole member

By:         Black Creek Industrial REIT IV Inc., a Maryland corporation, its general partner

By: /s/ Andrea Karp
Name: Andrea Karp
Date: May 16, 2018        Title: Managing Director

“Purchaser”

Escrow Agent has executed this Agreement in order to confirm that Escrow Agent shall act as escrowee with respect to and hold in escrow the Earnest Money and the interest earned thereon, and shall disburse the Earnest Money and the interest earned thereon, pursuant to the provisions of Article 9.
FIRST AMERICAN TITLE INSURANCE COMPANY

By: /s/ Chad Wilson 
Name: Chad Wilson 
Date: May 16, 2018    Title: Escrow Office

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