Document:

China Information Security Technology, Inc.: Exhibit 10.2 - Prepared by TNT Filings Inc.

Exhibit 10.2

 

January 7, 2010

CONFIDENTIAL

China Information Security Technology, Inc. 

21st Floor, Everbright Bank Building, Zhuzilin, Futian District 

Shenzhen, Guangdong, 518040 

People's Republic of China 

Attn: Jiang Huai Lin 

Chairman and Chief Executive Officer 

Dear Mr. Lin:

This letter (the “Agreement”) constitutes the agreement between Rodman & Renshaw, LLC (“Rodman” or the “Placement Agent”), China Information Security Technology,
Inc. (the “Company”) and the Selling Stockholder (as defined below), that Rodman shall serve as the exclusive placement agent for the Company, on a reasonable best efforts basis, in connection with the proposed placement (the
“Placement”) of registered securities (the “Securities”) of the Company, including 3,252,033 shares (the “Shares”) of the Company’s common stock, par value $0.01 per share (the
“Common Stock”), of which 1,652,033 Shares are being sold by the Company and 1,600,000 Shares are being sold by the selling stockholder under the Registration Statement (as defined below), at a price of $6.15 per Share for
aggregate gross proceeds to the Company and the selling stockholder under the Registration Statement (the “Selling Stockholder”) of approximately $20,000,000 along with a short term 45-day common stock purchase warrants
(“Warrants”) to purchase up to, in the aggregate, an additional $5,000,000 of Common Stock at a price of $6.15. The terms of such Placement and the Securities shall be mutually agreed upon by the Company and the purchasers
(each, a “Purchaser” and collectively, the “Purchasers”) and nothing herein constitutes that Rodman would have the power or authority to bind the Company or any Purchaser or an obligation for the Company to issue
any Securities or complete the Placement. This Agreement and the documents executed and delivered by the Company and the Purchasers in connection with the Placement shall be collectively referred to herein as the “Transaction
Documents.” The date of the closing of the Placement shall be referred to herein as the “Closing Date.” The Company expressly acknowledges and agrees that the execution of this Agreement does not constitute a commitment by
Rodman to purchase the Securities and does not ensure the successful placement of the Securities or any portion thereof or the success of Rodman with respect to securing any other financing on behalf of the Company.

SECTION 1. 

COMPENSATION AND OTHER FEES. 

As compensation for the services provided by Rodman hereunder, the Company agrees to pay to Rodman a cash fee payable immediately upon the closing of the
Placement and equal to 5.0% of the aggregate gross proceeds raised in the Placement, including gross proceeds from the both the Shares sold by the Company and the Selling Stockholder. Additionally, a cash fee payable within 48 hours of (but only in
the event of) the receipt by the Company of any proceeds from the exercise of the Warrants issued in the Placement that are solicited by the Placement Agent and otherwise in compliance with Financial Industry Regulatory Authority (“FINRA”)
Rule 5110 equal to 5% of the aggregate cash exercise price received by the Company upon such exercise, if any (the “Warrant Solicitation Fee”), provided, however, the Warrant Solicitation Fee shall be reduced to the extent (and only to the
extent) that Rodman’s aggregate compensation for the Placement, as determined under FINRA Rule 5110, would otherwise exceed 8%. Such determination of the actual Warrant Solicitation Fee shall be made promptly following completion of the
Placement and communicated in writing to the Company. 

Rodman &
Renshaw, LLC  1251 Avenue of the Americas, 20th Floor, New York, NY
10020 Tel: 212 356 0500  Fax: 212 581 5690  www.rodm.com
 Member: FINRA, SIPC

SECTION 2. 

REGISTRATION STATEMENT.

The Company represents and warrants to, and agrees with, the Placement Agent that: 

(A)  

The Company has filed with the Securities and Exchange Commission (the “Commission”) a registration statement on Form S-3 (Registration File No. 333-159375) under the Securities Act of 1933, as
amended (the “Securities Act”), which became effective on November 23, 2009, for the registration under the Securities Act of the Shares and Warrants. At the time of such filing, the Company met the requirements of Form S-3 under
the Securities Act. Such registration statement meets the requirements set forth in Rule 415(a)(1)(x) under the Securities Act and complies with said Rule. The Company will file with the Commission pursuant to Rule 424(b) under the Securities Act,
and the rules and regulations (the “Rules and Regulations”) of the Commission promulgated thereunder, a supplement to the form of prospectus included in such registration statement relating to the placement of the Shares and
Warrants and the plan of distribution thereof and has advised the Placement Agent of all further information (financial and other) with respect to the Company required to be set forth therein. Such registration statement, including the exhibits
thereto, as amended at the date of this Agreement, is hereinafter called the “Registration Statement;” such prospectus in the form in which it appears in the Registration Statement is hereinafter called the “Base
Prospectus”; and the supplemented form of prospectus, in the form in which it will be filed with the Commission pursuant to Rule 424(b) (including the Base Prospectus as so supplemented) is hereinafter called the “Prospectus
Supplement.” Any reference in this Agreement to the Registration Statement, the Base Prospectus or the Prospectus Supplement shall be deemed to refer to and include the documents incorporated by reference therein (the “Incorporated
Documents”) pursuant to Item 12 of Form S-3 which were filed under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), on or before the date of this Agreement, or the issue date of the Base Prospectus or the
Prospectus Supplement, as the case may be; and any reference in this Agreement to the terms “amend,” “amendment” or “supplement” with respect to the Registration Statement, the Base Prospectus or the Prospectus
Supplement shall be deemed to refer to and include the filing of any document under the Exchange Act after the date of this Agreement, or the issue date of the Base Prospectus or the Prospectus Supplement, as the case may be, deemed to be
incorporated therein by reference. All references in this Agreement to financial statements and schedules and other information that is “contained,” “included,” “described,” “referenced,” “set forth”
or “stated” in the Registration Statement, the Base Prospectus or the Prospectus Supplement (and all other references of like import) shall be deemed to mean and include all such financial
statements and schedules and other information that is or is deemed to be incorporated by reference in the Registration Statement, the Base Prospectus or the Prospectus Supplement, as the case may be.  No stop order suspending the effectiveness of
the Registration Statement or the use of the Base Prospectus or the Prospectus Supplement has been issued, and no proceeding for any such purpose is pending or has been initiated or, to the Company's knowledge, is threatened by the Commission. For
purposes of this Agreement, “Time of Sale Prospectus” means the preliminary prospectus used in connection with the Placement, including any documents incorporated by reference therein. 

2

(B) 

The Registration Statement (and any further documents to be filed with the
Commission) contains all exhibits and schedules as required by the Securities
Act. Each of the Registration Statement and any post-effective amendment
thereto, at the time it became effective, complied in all material respects with
the Securities Act and the Exchange Act and the applicable Rules and Regulations
and did not and, as amended or supplemented, if applicable, will not, contain
any untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary to make the statements therein not
misleading. The Base Prospectus, the Time of Sale Prospectus, if any, and the
Prospectus Supplement, each as of its respective date, comply in all material
respects with the Securities Act and the Exchange Act and the applicable Rules
and Regulations. Each of the Base Prospectus, the Time of Sale Prospectus, if
any, and the Prospectus Supplement, as amended or supplemented, did not and will
not contain as of the date thereof any untrue statement of a material fact or
omit to state a material fact necessary in order to make the statements therein,
in light of the circumstances under which they were made, not misleading. The
Incorporated Documents, when they were filed with the Commission, conformed in
all material respects to the requirements of the Exchange Act and the applicable
Rules and Regulations, and none of such documents, when they were filed with the
Commission, contained any untrue statement of a material fact or omitted to
state a material fact necessary to make the statements therein (with respect to
Incorporated Documents incorporated by reference in the Base Prospectus or
Prospectus Supplement), in light of the circumstances under which they were made
not misleading; and any further documents so filed and incorporated by reference
in the Base Prospectus, the Time of Sale Prospectus, if any, or Prospectus
Supplement, when such documents are filed with the Commission, will conform in
all material respects to the requirements of the Exchange Act and the applicable
Rules and Regulations, as applicable, and will not contain any untrue statement
of a material fact or omit to state a material fact necessary to make the
statements therein, in light of the circumstances under which they were made,
not misleading. No post-effective amendment to the Registration Statement
reflecting any facts or events arising after the date thereof which represent,
individually or in the aggregate, a fundamental change in the information set
forth therein is required to be filed with the Commission. There are no
documents required to be filed with the Commission in connection with the
transaction contemplated hereby that (x) have not been filed as required
pursuant to the Securities Act or (y) will not be filed within the requisite
time period. There are no contracts or other documents required to be described
in the Base Prospectus, the Time of Sale Prospectus, if any, or Prospectus
Supplement, or to be filed as exhibits or schedules to the Registration
Statement, that have not been described or filed as required.

(C) 

The Company is eligible to use free writing prospectuses in connection with the
Placement pursuant to Rules 164 and 433 under the Securities Act. Any free
writing prospectus that the Company is required to file pursuant to Rule 433(d)
under the
Securities Act has been, or will be, filed with the Commission in accordance with the requirements of the Securities Act and the applicable rules and regulations of the Commission thereunder. Each free writing prospectus that the Company has filed,
or is required to file, pursuant to Rule 433(d) under the Securities Act or that was prepared by or behalf of or used by the Company complies or will comply in all material respects with the requirements of the Securities Act and the applicable
rules and regulations of the Commission thereunder.  The Company will not, without the prior consent of the Placement Agent, prepare, use or refer to, any free writing prospectus.

3

(D) 

The Company has delivered, or will as promptly as practicable deliver, to the
Placement Agent complete conformed copies of the Registration Statement and of
each consent and certificate of experts, as applicable, filed as a part thereof,
and conformed copies of the Registration Statement (without exhibits), the Base
Prospectus, the Time of Sale Prospectus, if any, and the Prospectus Supplement,
as amended or supplemented, in such quantities and at such places as the
Placement Agent reasonably requests. Neither the Company nor any of its
directors and officers has distributed and none of them will distribute, prior
to the Closing Date, any offering material in connection with the offering and
sale of the Shares and Warrants other than the Base Prospectus, the Time of Sale
Prospectus, if any, the Prospectus Supplement, the Registration Statement,
copies of the documents incorporated by reference therein and any other
materials permitted by the Securities Act.

SECTION 3. 

REPRESENTATIONS AND WARRANTIES.

(A) 

There are no affiliations with any FINRA member firm among the Company’s officers, directors or, to the knowledge of the Company, any five percent (5%) or greater stockholder of the Company, except as set forth
in the Base Prospectus. 

(B) 

Rodman shall be entitled to rely upon any and all representations and warranties
of the Company and the Selling Stockholder included in the purchase agreements
entered into by the Company, Selling Stockholder and the Purchasers in
connection with the Placement, subject to the qualifications and limitations
therein. 

(C) 

The Selling Stockholder represents and warrants to, and agrees with, the
Placement Agent that: 

(a)  

Such Selling Stockholder is the record and beneficial owner of the Shares to be sold by it hereunder free and clear of all liens, encumbrances, equities and claims and has duly endorsed such Shares in blank, and has
full power and authority to sell its interest in the Shares, and, assuming that each purchaser acquires its interest in the Shares it has purchased from such Selling Stockholder without notice of any adverse claim (within the meaning of Section
8-105 of the New York Uniform Commercial Code (“UCC”), each purchaser that has purchased such Shares delivered on the Closing Date to The Depository Trust Company or other securities intermediary by making payment therefor as provided
herein, and that has had such Shares credited to the securities account or accounts of such purchasers maintained with The Depository Trust Company or such other securities intermediary will have acquired a security entitlement (within the meaning
of Section 8-102(a)(17) of the UCC) to such Shares purchased, and no action based on an adverse claim (within the meaning of
Section 8-105 of the UCC) may be asserted against such purchasers with respect to such Shares. 

4

(b) 

Such Selling Stockholder has not taken, directly or indirectly, any action
designed to or that would constitute or that might reasonably be expected to
cause or result in, under the Exchange Act or otherwise, stabilization or
manipulation of the price of any security of the Company to facilitate the sale
or resale of the Shares and Warrants. 

(c) 

No consent, approval, authorization or order of any court or governmental agency
or body is required for the consummation by such Selling Stockholder of the
transactions contemplated herein, except such as may have been obtained under
the Securities Act and such as may be required under the blue sky laws of any
jurisdiction in connection with the purchase and distribution of the Shares in
the Placement and such other approvals as have been obtained. 

(d) 

Neither the sale of the Shares being sold by such Selling Stockholder nor the
consummation of any other of the transactions herein contemplated by such
Selling Stockholder or the fulfillment of the terms hereof by such Selling
Stockholder will conflict with, result in a breach or violation of, or
constitute a default under any law or the terms of any indenture or other
agreement or instrument to which such Selling Stockholder is a party or bound,
or any judgment, order or decree applicable to such Selling Stockholder of any
court, regulatory body, administrative agency, governmental body or arbitrator
having jurisdiction over such Selling Stockholder. 

(e) 

Such Selling Stockholder has no reason to believe that the representations and
warranties of the Company contained herein are not true and correct, is familiar
with the Registration Statement and the Base Prospectus, and the Prospectus
Supplement and has no knowledge of any material fact, condition or information
not disclosed therein which has adversely affected or may adversely affect the
business of the Company or any of its Subsidiaries; and the sale of Shares by
such Selling Stockholder pursuant hereto is not prompted by any information
concerning the Company or any of its Subsidiaries which is not set forth in the
Base Prospectus or any amendment or supplement thereto. 

(f) 

In respect of any misstatements in or omissions from the Registration Statement,
the Prospectus, Prospectus Supplement, or any Free Writing Prospectus or any
amendment or supplement thereto used by the Company or the Placement Agent, as
the case may be, made in reliance upon and in conformity with information
furnished in writing to the Company by any Selling Stockholder specifically for
use in connection with the preparation thereof, such Selling Stockholder hereby
makes the same representations and warranties to the Placement Agent with
respect to such information furnished in writing to the Company as the Company
makes under Section 2(B). 

(g) 

Except as described in the Prospectus and Prospectus Supplement, all amounts payable by such Selling Stockholder under this Agreement shall be made free and clear of and without deduction for or on account of any
taxes imposed, assessed or levied by the PRC or any authority
thereof or therein nor are any taxes imposed in the PRC on, or by virtue of the execution or delivery of, such documents.

5

(h) 

This Agreement has been duly authorized, executed and delivered by such Selling
Stockholder, and is enforceable against such Selling Stockholder in accordance
with its terms. 

(i) 

The Selling Stockholder has validly and irrevocably submitted to the personal
jurisdiction of any federal or the State of New York court located in The City
of New York, New York in any action arising out of or based upon the Transaction
Documents, has validly waived any objection to the venue of a proceeding in any
such court, and service of process effected on it as set forth in will be
effective to confer valid personal jurisdiction over such Selling Stockholder in
any such court. 

SECTION 4. 

ENGAGEMENT TERM. Rodman's engagement hereunder will be for the period of 4 days from the date hereof. The engagement may be terminated by either the Company or Rodman at any time upon 2 days' written notice. Notwithstanding
anything to the contrary contained herein, the provisions in this Agreement concerning confidentiality, indemnification and contribution will survive any expiration or termination of this Agreement. Upon any termination of this Agreement, the
Company's obligation to pay Rodman any fees actually earned on closing of the Offering and otherwise payable under Section 1, shall survive any expiration or termination of this Agreement.

SECTION 5. 

RODMAN INFORMATION. The Company agrees that any information or advice rendered by Rodman in connection with this engagement is for the confidential use of the Company only in their evaluation of the Placement and, except as
otherwise required by law, the Company will not disclose or otherwise refer to the advice or information in any manner without Rodman’s prior written consent. 

SECTION 6. 

NO FIDUCIARY RELATIONSHIP.  This Agreement does not create, and shall not be construed as creating rights enforceable by any person or entity not a party hereto, except those entitled hereto by virtue of the indemnification
provisions hereof.  The Company acknowledges and agrees that Rodman is not and shall not be construed as a fiduciary of the Company and shall have no duties or liabilities to the equity holders or the creditors of the Company or any other person by
virtue of this Agreement or the retention of Rodman hereunder, all of which are hereby expressly waived.

SECTION 7. 

CLOSING. The obligations of the Placement Agent and the Purchasers, and the closing of the sale of the Securities hereunder are subject to the accuracy, when made and on the applicable Closing Date, of the representations
and warranties on the part of the Company and its Subsidiaries contained herein, to the accuracy of the statements of the Company and its Subsidiaries made in any certificates pursuant to the provisions hereof, to the performance by the Company and
its Subsidiaries of their obligations hereunder, and to each of the following additional terms and conditions: 

(A) 

No stop order suspending the effectiveness of the Registration Statement shall
have been issued and no proceedings for that purpose shall have been initiated
or threatened by the Commission, and any request for additional information on
the part of
the Commission (to be included in the Registration Statement, the Base Prospectus or the Prospectus Supplement or otherwise) shall have been complied with to the reasonable satisfaction of the Placement Agent.

6

(B) 

The Placement Agent shall not have discovered and disclosed to the Company on or
prior to the Closing Date that the Registration Statement, the Base Prospectus
or the Prospectus Supplement or any amendment or supplement thereto contains an
untrue statement of a fact which, in the opinion of counsel for the Placement
Agent, is material or omits to state any fact which, in the opinion of such
counsel, is material and is required to be stated therein or is necessary to
make the statements therein not misleading. 

(C) 

All corporate proceedings and other legal matters incident to the authorization,
form, execution, delivery and validity of each of this Agreement, the
Securities, the Registration Statement, the Base Prospectus and the Prospectus
Supplement and all other legal matters relating to this Agreement and the
transactions contemplated hereby shall be reasonably satisfactory in all
material respects to counsel for the Placement Agent, and the Company shall have
furnished to such counsel all documents and information that they may reasonably
request to enable them to pass upon such matters. 

(D) 

Neither the Company nor any of its Subsidiaries shall have sustained since the date of the latest audited financial statements included or incorporated by reference in the Base Prospectus, any loss or interference
with its business from fire, explosion, flood, terrorist act or other calamity, whether or not covered by insurance, or from any labor dispute or court or governmental action, order or decree, otherwise than as set forth in or contemplated by the
Base Prospectus and (ii) since such date there shall not have been any change in the capital stock or long-term debt of the Company or any of its Subsidiaries or any change, or any development involving a prospective change, in or affecting the
business, general affairs, management, financial position, stockholders’ equity, results of operations or prospects of the Company and its Subsidiaries, otherwise than as set forth in or contemplated by the Base Prospectus, the effect of which,
in any such case described in clause (i) or (ii), is, in the judgment of the Placement Agent, so material and adverse as to make it impracticable or inadvisable to proceed with the sale or delivery of the Securities on the terms and in the manner
contemplated by the Base Prospectus, the Time of Sale Prospectus, if any, and the Prospectus Supplement. 

(F) 

The Common Stock is registered under the Exchange Act and, as of the Closing
Date, the Shares and shares underlying the Warrants shall be listed and admitted
and authorized for trading on the Trading Market, and satisfactory evidence of
such actions shall have been provided to the Placement Agent. The Company shall
have taken no action designed to, or likely to have the effect of terminating
the registration of the Common Stock under the Exchange Act or delisting or
suspending from trading the Common Stock from the Trading Market, nor has the
Company received any information suggesting that the Commission or the Trading
Market is contemplating terminating such registration or listing. 

(G)  

Subsequent to the execution and delivery of this Agreement, there shall not have occurred any of the following: (i) trading in securities generally on the New York Stock Exchange, the Nasdaq National Market or the
NYSE Amex or in the over-the-counter market, or trading in any securities of the Company on any exchange or in the
over-the-counter market, shall have been suspended or minimum or maximum prices or maximum ranges for prices shall have been established on any such exchange or such market by the Commission, by such exchange or by any other regulatory body or
governmental authority having jurisdiction, (ii) a banking moratorium shall have been declared by federal or state authorities or a material disruption has occurred in commercial banking or securities settlement or clearance services in the United
States, (iii) the United States shall have become engaged in hostilities in which it is not currently engaged, the subject of an act of terrorism, there shall have been an escalation in hostilities involving the United States, or there shall have
been a declaration of a national emergency or war by the United States, or (iv) there shall have occurred any other calamity or crisis or any change in general economic, political or financial conditions in the United States or elsewhere, if the
effect of any such event in clause (iii) or (iv) makes it, in the reasonable judgment of the Placement Agent, impracticable or inadvisable to proceed with the sale or delivery of the Securities on the terms and in the manner contemplated by the Base
Prospectus and the Prospectus Supplement. 

7

(H) 

No action shall have been taken and no statute, rule, regulation or order shall
have been enacted, adopted or issued by any governmental agency or body which
would, as of the Closing Date, prevent the issuance or sale of the Securities or
materially and adversely affect or potentially and adversely affect the business
or operations of the Company; and no injunction, restraining order or order of
any other nature by any federal or state court of competent jurisdiction shall
have been issued as of the Closing Date which would prevent the issuance or sale
of the Securities or materially and adversely affect or potentially and
adversely affect the business or operations of the Company. 

(I) 

The Company shall have prepared and filed with the Commission a Current Report
on Form 8-K with respect to the Placement, including as an exhibit thereto this
Agreement. 

(J) 

The Company shall have entered into subscription agreements with each of the
Purchasers and such agreements shall be in full force and effect and shall
contain representations and warranties of the Company as agreed between the
Company and the Purchasers. 

(K) 

FINRA shall have raised no objection to the fairness and reasonableness of the terms and arrangements of this Agreement.  In addition, the Company shall, if requested by the Placement Agent, make or authorize
Placement Agent’s counsel to make on the Company’s behalf, an Issuer Filing with FINRA pursuant to FINRA Rule 5110 with respect to the Registration Statement and pay all filing fees required in connection therewith.

(L) 

Prior to the applicable Closing Date, the Company shall have furnished to the
Placement Agent such further information, certificates and documents as the
Placement Agent may reasonably request. 

(M) 

The Placement Agent shall have received from outside counsel to the Company such
counsel’s written opinion, dated as of the Closing Date, in form and substance
reasonably satisfactory to the Placement Agent, which opinion shall include a
“10b-5” representation from such counsel. 

8

(N) 

At the Closing Date, the Company shall provide a “cold comfort” letter from the
Company’s independent certified public accountants addressed to the Placement
Agent, which letter shall be in the customary form and cover matters of the type
customarily covered in “cold comfort” letters by accountants and satisfactory in
all respects to the Placement Agent. 

(O) 

On or prior to the Closing Date, the Company shall have furnished to the Placement Agent a lock-up agreement, substantially in the form of Exhibit A hereto from each officer and director of the Company
(including the Selling Stockholder) addressed to the Placement Agent. 

     All letters, opinions, evidence and certificates mentioned above or elsewhere in this Agreement shall be deemed to be in compliance with the provisions hereof only if they are in form and substance reasonably
satisfactory to counsel for the Placement Agent. 

SECTION 8. 

INDEMNIFICATION. (A)  To the extent permitted by law, the Company will indemnify Rodman and its affiliates, stockholders, directors, officers, employees and controlling persons (within the meaning of Section 15 of the
Securities Act or Section 20 of the Exchange Act) against all losses, claims, damages, expenses and liabilities, as the same are incurred (including the reasonable fees and expenses of counsel), relating to or arising out of its activities hereunder
or pursuant to this engagement letter, except to the extent that any losses, claims, damages, expenses or liabilities (or actions in respect thereof) are found in a final judgment (not subject to appeal) by a court of law to have resulted primarily
and directly from Rodman’s willful misconduct or gross negligence in performing the services described herein. 

(B) 

The Selling Stockholder agrees to indemnify and hold harmless the Placement
Agent, the directors, officers, employees and agents of the Placement Agent and
each person who controls Placement Agent within the meaning of either the
Securities Act or the Exchange Act to the same extent as the foregoing indemnity
from the Company to the Placement Agent in Section 8(a) above, but only with
reference to written information relating to such Selling Stockholder furnished
to the Company by or on behalf of such Selling Stockholder specifically for
inclusion in the documents referred to in the foregoing indemnity in Section
8(a) above. The Placement acknowledge that the statements set forth under the
headings “Summary – Our Selling Stockholder” and “Selling Stockholder” in any
Preliminary Prospectus, the Prospectus and the Prospectus Supplement constitute
the only information furnished in writing by or on behalf of the Selling
Stockholder for inclusion in any Preliminary Prospectus, the Prospectus,
Prospectus Supplement or any Free Writing Prospectus. 

(C)  

Promptly after receipt by Rodman of notice of any claim or the commencement of any action or proceeding with respect to which Rodman is entitled to indemnity hereunder, Rodman will notify the Company and/or Selling
Stockholder, as applicable, in writing of such claim or of the commencement of such action or proceeding, and the Company and/or Selling Stockholder, as applicable, will assume the defense of such action or proceeding and will employ counsel
reasonably satisfactory to Rodman and will pay the fees and expenses of such counsel.  Notwithstanding the preceding sentence, Rodman will be entitled to employ counsel separate from counsel for the Company and Selling Stockholder and from any other
party in such action if counsel for Rodman reasonably determines that it would be inappropriate under the applicable
rules of professional responsibility for the same counsel to represent both the Company or Selling Stockholder, on the one hand and Rodman on the other. In such event, the reasonable fees and disbursements of no more than one such separate counsel
will be paid by the Company.  The Company will have the exclusive right to settle the claim or proceeding provided that the Company will not settle any such claim, action or proceeding without the prior written consent of Rodman, which will not be
unreasonably withheld. 

9

(D) 

The Company and Selling Stockholder each agrees to notify Rodman promptly of the
assertion against it or any other person of any claim or the commencement of any
action or proceeding relating to a transaction contemplated by this engagement
letter. 

(E) 

If for any reason the foregoing indemnity is unavailable to Rodman or
insufficient to hold Rodman harmless, then the Company and Selling Stockholder,
as applicable, shall contribute to the amount paid or payable by Rodman as a
result of such losses, claims, damages or liabilities in such proportion as is
appropriate to reflect not only the relative benefits received by the Company
and/or Selling Stockholder on the one hand and Rodman on the other, but also the
relative fault of the Company and/or Selling Stockholder on the one hand and
Rodman on the other that resulted in such losses, claims, damages or
liabilities, as well as any relevant equitable considerations. The amounts paid
or payable by a party in respect of losses, claims, damages and liabilities
referred to above shall be deemed to include any legal or other fees and
expenses incurred in defending any litigation, proceeding or other action or
claim. Notwithstanding the provisions hereof, Rodman’s share of the liability
hereunder shall not be in excess of the amount of fees actually received, or to
be received, by Rodman under this engagement letter (excluding any amounts
received as reimbursement of expenses incurred by Rodman). 

(F) 

These indemnification provisions shall remain in full force and effect whether
or not the transaction contemplated by this engagement letter is completed and
shall survive the termination of this engagement letter, and shall be in
addition to any liability that the Company or Selling Stockholder might
otherwise have to any indemnified party under this engagement letter or
otherwise. 

SECTION 9. 

GOVERNING LAW.  This Agreement will be governed by, and construed in accordance with, the laws of the State of New York applicable to agreements made and to be performed entirely in such State. This Agreement may not be
assigned by either party without the prior written consent of the other party.  This Agreement shall be binding upon and inure to the benefit of the parties hereto, and their respective successors and permitted assigns. Any right to trial by jury
with respect to any dispute arising under this Agreement or any transaction or conduct in connection herewith is waived. Any dispute arising under this Agreement may be brought into the courts of the State of New York or into the Federal Court
located in New York, New York and, by execution and delivery of this Agreement, the Company hereby accepts for itself and in respect of its property, generally and unconditionally, the jurisdiction of aforesaid courts.  Each party hereto hereby
irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by
delivering a copy thereof via overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and
notice thereof.  Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. If either party shall commence an action or proceeding to enforce any provisions of a Transaction Document, then
the prevailing party in such action or proceeding shall be reimbursed by the other party for its attorneys’ fees and other costs and expenses incurred with the investigation, preparation and prosecution of such action or proceeding. 

10

SECTION 10. 

ENTIRE AGREEMENT/MISC.  This Agreement embodies the entire agreement and understanding between the parties hereto, and supersedes all prior agreements and understandings, relating to the subject matter hereof. If any
provision of this Agreement is determined to be invalid or unenforceable in any respect, such determination will not affect such provision in any other respect or any other provision of this Agreement, which will remain in full force and effect.
This Agreement may not be amended or otherwise modified or waived except by an instrument in writing signed by both Rodman and the Company.  The representations, warranties, agreements and covenants contained herein shall survive the closing of the
Placement and delivery and/or exercise of the Securities, as applicable.  This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one and the same agreement and shall become effective when
counterparts have been signed by each party and delivered to the other party, it being understood that both parties need not sign the same counterpart. In the event that any signature is delivered by facsimile transmission or a .pdf format file,
such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or .pdf signature page were an original thereof.

SECTION 11. 

NOTICES. Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and shall be deemed given and effective on the earliest of (a) the date of transmission,
if such notice or communication is delivered via facsimile at the facsimile number specified on the signature pages attached hereto prior to 6:30 p.m. (New York City time) on a business day, (b) the next business day after the date of transmission,
if such notice or communication is delivered via facsimile at the facsimile number on the signature pages attached hereto on a day that is not a business day or later than 6:30 p.m. (New York City time) on any business day, (c) the business day
following the date of mailing, if sent by U.S. nationally recognized overnight courier service, or (d) upon actual receipt by the party to whom such notice is required to be given.  The address for such notices and communications shall be as set
forth on the signature pages hereto. 

[remainder of page left blank intentionally]

 

 

11

Please confirm that the foregoing correctly sets forth our agreement by signing and returning to Rodman a copy of this Agreement. 

Very truly yours,

RODMAN & RENSHAW, LLC

By: /s/ Edward Rubin                           
   

Name: Edward Rubin

Title: CEO

Address for notice: 

1251 Avenue of the Americas, 20th Floor

New York, NY, 10020 

Fax (646) 841-1640 

Attention: General Counsel 

[Company Signature Page is to Follow]

 

 

 

[Company and Selling Stockholder signature page to Rodman Engagement Letter]

Accepted and Agreed to as of

the date first written above: 

CHINA INFORMATION SECURITY TECHNOLOGY, INC.

By: /s/ Jiang Huai Lin                    

Name: Jiang Huai Lin 

Title: Chief Executive Officer

Address for notice: 

China Information Security Technology, Inc. 

21st Floor, Everbright Bank Building, Zhuzilin, Futian District 

Shenzhen, Guangdong, 518040 

People's Republic of China 

Attn: Jiang Huai Lin 

Chairman and Chief Executive Officer 

Acknowledged and Agreed to: 

SELLING STOCKHOLDER 

/s/ Jiang Huai Lin                      

Jiang Huai LinEX-10.1

REAL ESTATE PURCHASE AGREEMENT

AND ESCROW INSTRUCTIONS

THIS REAL ESTATE PURCHASE AGREEMENT and ESCROW INSTRUCTIONS (this “Agreement”) is entered into
as of this 7th day of January, 2010 (the “Effective Date”), by and between Stingray
Properties, LLC, a Minnesota limited liability company (“Seller”); Crystal Blue Properties, LLC, a
Minnesota limited liability company, Sylvan Holdings, LLC, a Minnesota limited liability company
and Dr. Samuel Elghor, an individual (collectively, the “Seller Guarantor”), Grubb & Ellis Equity
Advisors, LLC, a Delaware limited liability company, its successors and assigns (“Buyer”); and
First American Title Insurance Company (“Escrow Agent”).

RECITALS

I. Seller owns or holds leasehold interest in certain real property and improvements located
at 162 and 166 19th Street South, Sartell, Minnesota 56377, altogether as more
particularly described on Exhibit “A” attached hereto and certain other assets as hereinafter
described.

II. Seller desires to sell to Buyer, and Buyer desires to purchase from Seller, the Property
(as hereinafter defined) on the terms and conditions contained in this Agreement.

AGREEMENT

NOW, THEREFORE, in consideration of the promises and mutual agreements contained herein, and
other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto do hereby agree as follows:

ARTICLE 1

SALE OF PROPERTY

1.1 Property To Be Sold

Subject to the terms and provisions hereof, Seller agrees to sell to Buyer, and Buyer agrees
to purchase from Seller, upon the terms and conditions of this Agreement:

1.1.1 Seller’s interest in all of the land described and/or shown on Exhibit “A” attached
hereto, together with all privileges, rights, easements and appurtenances belonging to such land,
including without limitation, all right, title and interest (if any) of Seller in and to any
streets, alleys, passages, and other rights-of-way or appurtenances included in, adjacent to or
used in connection with such land and all right, title and interest (if any) of Seller in all
mineral and development rights appurtenant to such land (collectively, the “Land”);

1.1.2 Seller’s interest in all buildings, structures and other improvements and all fixtures,
systems and facilities located on the Land (the “Improvements”);

1.1.3 All leases (the “Tenant Leases”), including all amendments thereto, with all persons
leasing the Real Property or any part thereof or hereafter entered into in accordance with the
terms hereof prior to Closing, together with all security deposits, other deposits held in
connection with the Tenant Leases, and all of Seller’s right title and interest in and to all
guarantees, letters of credit and other similar credit enhancements providing additional security
for such Tenant Leases;

1.1.4 Seller’s interest, if any, in (i) any and all tangible personal property owned by Seller
located on or used exclusively in connection with the Real Property (as defined below), except for
those items set forth on Schedule 1.1.4, but including (unless otherwise set forth on Schedule
1.1.4), without limitation, sculptures, paintings and other artwork, equipment, furniture, tools
and supplies as well as Seller’s rights in and to any reserve accounts held in connection with the
Loan (as defined below) (collectively, the “Tangible Personal Property”); and (ii) to the extent
such items are in Seller’s possession or control, any and all plans and specifications;
architectural and engineering drawings; the common name of the Real Property; (collectively, the
“Intangible Personal Property,” and collectively with the Tangible Personal Property, the “Personal
Property”);

1.1.5 To the extent assignable and transferable, Seller’s interest in all warranties and
guaranties relating to the Improvements (the “Warranties”);

1.1.6 All use, occupancy, building and operating licenses, permits, approvals, and development
rights relating to the Property to the extent such items are assignable and without cost to Seller
(the “Permits”);

1.1.7 Seller’s interest and rights in all service contracts relating to the operation of the
Property as of the Effective Date or entered into in accordance with this Agreement prior to
Closing (collectively, the “Contracts”); provided, however, that Seller shall terminate at Closing,
at Seller’s cost, any Contracts that Buyer does not elect to assume pursuant to Section 3.4.
Notwithstanding the terms of Section 3.4 Buyer shall be obligated to assume Seller’s obligation
under the ADT Security contract related to the Real Property.

1.1.8 An irrevocable license to use any trade names used or utilized in connection with the
Property, including without limitation the trade name “Center for Neurosurgery and Spine”. Such
license shall provide that Buyer agrees to continue naming the building on the Real Property the
“Center for Neurosurgery and Spine” in accordance with Section 9.23.1.

1.1.9 The Land and Improvements are hereinafter sometimes referred to collectively as the
“Real Property,” and the Real Property, Personal Property, and other property described in this
Section 1.1 are hereinafter sometimes referred to collectively as the “Property.”

1.2 Purchase and Sale

Buyer agrees to purchase from Seller, and Seller agrees to sell to Buyer, all of Seller’s
right, title and interest in and to the Property, on the terms and conditions set forth in this
Agreement.

1.3 Purchase Price

The purchase price for the Property (the “Purchase Price”) shall be Six Million Five Hundred
Thousand Dollars ($6,500,000.00). The Purchase Price shall be paid to Seller by Buyer on the
Closing Date (as defined below), plus or minus all adjustments or credits as set forth herein, by
wire transfer of immediately available federal funds.

1.4 Deposit And Escrow. 

1.4.1 Within three (3) Business Days after the Effective Date, Buyer shall deliver to Escrow
Agent at the following address: First American Title Insurance Company, 777 South Figueroa Street,
Fourth Floor Los Angeles, California 90017 Attn: Barbara Laffer (blaffer@firstam.com) Phone: (213)
271-1702, a deposit in the amount of Two Hundred Thousand Dollars ($200,000.00) (the “Deposit”).
The Deposit shall be held in an insured, interest-bearing account with interest accruing for the
benefit of Buyer. For purposes of this Agreement the term “Deposit” shall include any and all
interest earned thereon. The Escrow Agent may conclusively rely upon and act in accordance with
any certificate, instructions, notice, letter, e-mail, facsimile, or other written instrument
believed to be genuine and signed or communicated by the proper party or parties.

1.4.2 The Deposit shall be applied to the Purchase Price if the Closing (as defined below)
occurs. Upon delivery of Buyer’s Approval Notice (as defined below), the Deposit shall not be
returned to Buyer unless escrow fails to close due to (i) Seller’s breach or default under this
Agreement, (ii) a failure of a representation or warranty by Seller to be true and correct as of
the Closing, (iii) a failure of a condition precedent set forth in Section 5.4, or (iv) any other
reason that entitles Buyer to have the Deposit returned as provided for herein. In the event Buyer
shall elect to terminate or shall be deemed to have terminated this Agreement during the Due
Diligence Period (as defined below), or as otherwise provided in this Agreement, the Deposit shall
be returned to Buyer as provided in Section 3.6 below.

1.5 Closing Date 

The closing (“Closing”) shall take place through an escrow opened with Escrow Agent on the day
which is thirty (30) days after the expiration of the Due Diligence Period (as the same may be held
earlier in accordance herewith, the “Closing Date”). Notwithstanding the foregoing, the parties
may, upon mutual agreement, hold the Closing on a date earlier than thirty (30) days after the
expiration of the Due Diligence Period (as defined below).

1.6 Assumption of Existing Loan

At Closing, Buyer shall assume the loan (the “Loan Assumption”) evidenced by a note in the
original principal amount of Four Million Dollars ($4,000,000) (the “Loan”). Documents securing
the Loan currently encumber the Property. The Loan was originally made by Wells Fargo Bank,
National Association and is currently serviced by Wells Fargo Bank, National Association
(collectively with any successors and assigns, the “Existing Lender”), and is evidence and/or
secured by a number of documents, which are hereinafter collectively referred to as the “Loan
Documents”. The Existing Lender’s consent and approval is required before Buyer will be permitted
to assume the Loan. Seller shall pay all costs, fees and expenses in connection with attempting to
obtain Existing Lender’s approval of the assumption of the Loan (collectively, the “Loan Assumption
Related Fees”). In connection with such approval, the parties shall diligently, promptly and in
good faith attempt to obtain such approval and both parties will supply the information reasonably
requested by Existing Lender with respect to such approval. This Agreement shall automatically
terminate and the Deposit shall be returned immediately to Buyer if approval of Buyer’s assumption
of the Loan is denied or is not obtained prior to Closing (as defined below). In such event, Buyer
and Seller agree to execute a written termination of this Agreement.

ARTICLE 2

TITLE AND SURVEY

2.1 Title and Survey

Buyer may, at its option and expense, (i) obtain a preliminary title report or commitment (the
“Preliminary Report”) from Escrow Agent (referred to herein in such capacity as the “Title
Company”), together with legible copies of all recorded encumbrances and exceptions to title, (ii)
conduct UCC searches covering Seller and the Property (the “UCC Searches”), and (iii) order a
survey of the Real Property by a licensed surveyor or registered professional engineer (the
“Survey”).

2.2 Required Title Condition

Title to the Property shall be conveyed to Buyer subject only to the following matters:
(a) current, non-delinquent real estate taxes and assessments, (b) the matters set forth in the
Preliminary Report and permitted by Buyer, in Buyer’s sole and absolute discretion, as part of the
Title Policy (as defined below), (c) any matter that would be shown by a current accurate survey or
physical inspection of the Real Property, (d) building and zoning laws (e) taxes and assessments
not yet due and payable, (f) the items listed on the attached Exhibit “G”, and (g) any other
matters approved in writing by Buyer in Buyer’s sole and absolute discretion (collectively, the
“Required Title Condition”). Notwithstanding anything contained in this Section 2.2 to the
contrary, Seller shall be obligated, at its sole cost and expense, to satisfy at or prior to
Closing all monetary encumbrances effecting the Property evidenced by deeds of trust, tax liens,
judgments, mechanics’ liens, or other liens or charges in a fixed sum, and Seller authorizes the
use of the Purchase Price or a portion thereof to pay and discharge the same at Closing.

ARTICLE 3

INSPECTION AND DUE DILIGENCE PERIOD

3.1 Access

From and after the Effective Date through the Closing, (a) Buyer, personally or through its
authorized agent or representatives, shall be entitled, upon reasonable advance notice to Seller,
to enter upon the Property during normal business hours (and without disruption to any tenant on
the Property) and shall have the right to make such investigations, including appraisals, tenant
interviews, interviews of government officials, engineering studies, soil tests, environmental
studies and underwriting analyses, as Buyer deems necessary or advisable, and (b) Seller shall, at
Seller’s expense, turn on, run, and maintain, with any interruption in service, electrical power
and all utilities to the Property (including without limitation plumbing, heating and air
conditioning systems) to facilitate Buyer’s testing and investigations thereof. Buyer shall have
the right to conduct a Phase I environmental site assessment, and, if necessary, a Phase II
environmental site assessment (including soils borings, soil sampling and, if relevant, ground
water testing, and invasive sampling of building materials with respect to the Property). Buyer
hereby agrees to indemnify and hold Seller (and Seller’s agents, advisors, partners, members,
owners, officers and directors, as the case may be) harmless from any physical damages arising out
of all inspections and investigations by Buyer or its agents or independent contractors, but in no
event shall the indemnity of this Section include the discovery of pre-existing conditions
disclosed by Buyer’s investigations. Notwithstanding any other provision in this Agreement to the
contrary, this indemnification shall survive the termination of or Closing under this Agreement.
Buyer shall provide copies to Seller of any and all reports or other written investigation
materials as a result of Buyer’s review of the Property.

3.2 Due Diligence Period

Buyer shall have from the Effective Date until the date that is thirty (30) days after the
Effective Date (such period being the “Due Diligence Period”) to physically inspect the Property,
review the economic data, conduct appraisals, perform examinations of the physical condition of the
Improvements, examine the Property for the presence of Hazardous Materials (as defined below), and
to otherwise conduct such due diligence review of the Property and all of the items to be furnished
by Seller to Buyer pursuant to Section 3.3 below, and all records and other materials related
thereto as Buyer deems appropriate.

3.3 Items to be Provided by Seller

No later than three (3) Business Days after the Effective Date, Seller shall deliver to Buyer
accurate and complete copies of all of the information set forth on Exhibit “B”, to the extent such
items are in Seller’s possession (collectively, the “Property Information”). In the event Buyer
elects to terminate this Agreement, then the Property Information shall be promptly returned to
Seller.

3.4 Property Contracts

Buyer shall not be required to assume any service or other contracts (collectively,
“Contracts”) of Seller at Closing. As of the Closing Date, Seller, at Seller’s expense, shall
terminate any Contracts that Buyer does not accept in Buyer’s sole discretion by written
notification to Seller prior to the expiration of the Due Diligence Period including without
limitation any management agreements affecting the Property.

3.5 Buyer’s Possible Early Termination

Buyer shall have the right to approve or disapprove in Buyer’s sole and absolute discretion,
the Property, the Property Information, or any other matter whatsoever regarding the Property. At
any time prior to or on the expiration of the Due Diligence Period, Buyer may provide written
notice to Seller disapproving the Property for purposes of this Article 3 (“Disapproval Notice”).
Unless Buyer provides Seller with the Disapproval Notice prior to the expiration of the Due
Diligence Period, Buyer waives its rights to terminate under this provision. Notwithstanding
anything herein to the contrary, the non delivery of the Disapproval Notice shall not be deemed to
be a waiver by Buyer of any other rights of termination it may have as set forth herein.

3.6 Consequences of Buyer’s Early Termination

Unless Buyer provides a Disapproval Notice to Seller pursuant to Section 3.5, this Agreement
shall immediately terminate upon the expiration of the Due Diligence Period, and the parties shall
be released from all further obligations under this Agreement (except with respect to any
provisions that by their terms survive a termination of this Agreement); provided, however, that if
Seller is in default hereunder at the time of such termination, Section 6.2 shall additionally
apply. Escrow Agent shall pay the entire Deposit to Buyer not later than one (1) Business Day
following termination of this Agreement. No notice to Escrow Agent from Seller shall be required
for the release of the Deposit to Buyer by Escrow Agent under this Section, and the Deposit shall
be released and delivered to Buyer upon Escrow Agent’s receipt of Buyer’s confirmation of
termination of the Agreement pursuant to this Article 3, despite any objection or potential
objection by Seller.

ARTICLE 4

REPRESENTATIONS, WARRANTIES AND COVENANTS

4.1 Seller’s Representations

Except as otherwise disclosed in writing to Buyer, Seller warrants and represents to Buyer as
follows:

4.1.1 Seller is a limited liability company validly formed in the State of Minnesota. Seller
has full power and authority to enter into this Agreement, to perform this Agreement and to
consummate the transactions contemplated hereby. The execution, delivery and performance of this
Agreement and all documents contemplated hereby by Seller have been duly and validly authorized by
all necessary action on the part of Seller and all required consents and approvals have been duly
obtained and will not result in a breach of any of the terms or provisions of, or constitute a
default under any indenture, agreement or instrument to which Seller is a party. This Agreement is
a legal, valid and binding obligation of Seller, enforceable against Seller in accordance with its
terms, subject to the effect of applicable bankruptcy, insolvency, reorganization, arrangement,
moratorium or other similar laws affecting the rights of creditors generally.

4.1.2 Seller has good and marketable title to the Property, subject only to the conditions of
title set forth in the Preliminary Report and the items listed in Section 2.2 hereunder. There are
no outstanding rights of first refusal, rights of reverter or options to purchase relating to the
Property or any interest therein. To Seller’s knowledge, there are no unrecorded or undisclosed
documents or other matters which affect title to the Property. Seller has enjoyed the continuous
and uninterrupted quiet possession, use and operation of the Property, and to Seller’s knowledge,
without material complaint or objection by any person.

4.1.3 Seller is not a “foreign person” within the meaning of Section 1445(f) of the Internal
Revenue Code of 1986, as amended (the “Code”).

4.1.4 Neither Seller nor any of its affiliates, nor any of their respective partners, members,
shareholders or other equity owners, and none of their respective employees, officers, directors,
representatives or agents is, nor will they become, a person or entity with whom United States
persons or entities are restricted from doing business under regulations of the Office of Foreign
Asset Control (“OFAC”) of the Department of the Treasury (including those named on OFAC’s Specially
Designated and Blocked Persons List) or under any statute, executive order (including, without
limitation, the September 24, 2001, Executive Order Blocking Property and Prohibiting Transactions
with Persons Who Commit, Threaten to Commit, or Support Terrorism), or other governmental action,
and is not and will not engage in any dealings or transactions or be otherwise associated with such
persons or entities.

4.1.5 No authorization, consent, or approval of any governmental authority (including courts)
is required for the execution and delivery by Seller of this Agreement or the performance of its
obligations hereunder.

4.1.6 To Seller’s knowledge, there are no actions, suits or proceedings pending, or, to
Seller’s knowledge, threatened against (a) any portion of the Property, or (b) affecting Seller,
which if determined adversely, may affect its ability to perform its obligations hereunder.

4.1.7 Seller has not (a) made a general assignment for the benefit of creditors, (b) filed any
voluntary petition in bankruptcy or suffered the filing of an involuntary petition by Seller’s
creditors, (c) suffered the appointment of a receiver to take possession of all or substantially
all of Seller’s assets, (d) suffered the attachment or other judicial seizure of all, or
substantially all, of Seller’s assets, (e) admitted in writing its inability to pay its debts as
they come due, or (f) made an offer of settlement, extension or composition to its creditors
generally.

4.1.8 Neither the execution, delivery or performance of this Agreement nor compliance herewith
(a) conflicts or will conflict with or results or will result in a breach of or constitutes or will
constitute a default under (i) the articles of incorporation and by-laws or other organization
certificate and/or partnership or operating agreement of Seller, or (ii) any law or any order,
writ, injunction or decree of any court or governmental authority, or (b) results in the creation
or imposition of any lien, charge or encumbrance upon its property pursuant to any such agreement
or instrument.

4.1.9 Seller has not entered into any material commitments or agreements with any governmental
authorities or agencies affecting the Property except as provided in the Property Information and
as provided in the items listed in the Required Title Condition.

4.1.10 To Seller’s knowledge, there is no pending, threatened or contemplated condemnation
proceeding relating to the Property, and Seller has received no notice from any governmental agency
or official to the effect that any such proceeding is contemplated.

4.1.11 Seller has delivered or made available to Buyer a complete copy of the Tenant Leases.
Each of the Tenant Leases is in full force and effect. Seller is “landlord” or “lessor” under the
Tenant Leases and is entitled to assign to Buyer, without the consent of any party, the Tenant
Leases. To Seller’s knowledge, neither Seller nor any tenant is in default under its respective
Tenant Lease at Closing and there exists no condition or circumstance or written notice of any
condition or circumstance which, with the passage of time, would constitute a default under any of
the Tenant Leases. To Seller’s knowledge, no tenant has asserted any claim of offset or other
defense in respect of its or Seller’s obligations under its respective Tenant Lease. To Seller’s
knowledge, there are no pending or incomplete tenant improvements and unpaid tenant improvement
costs and leasing commissions with respect to any Tenant Lease, except that shall be fully
completed and paid in full prior to Closing. To Seller’s knowledge, no tenant has (i) filed for
bankruptcy or taken any similar debtor-protection measure, (ii) defaulted under its Tenant Lease,
(iii) discontinued operations at the Property, or (iv) given notice of its intention to do any of
the foregoing.

4.1.12 To Seller’s knowledge, Seller has delivered or will make available to Buyer true and
complete copies of all contracts to which Seller is a party and which materially affect the
Property. Seller has not, within the last year, received any written notice of any default under
any Property service contract or other such contract or agreement that has not been cured or
waived.

4.1.13 Seller has not received any written notice from, and is otherwise aware of no grounds
for, any association, declarant or easement holder requiring the correction of any condition with
respect to the Property, or any part thereof, by reason of a violation of any other restrictions or
covenants recorded against the Property.

4.1.14 Seller has not received any written notice from, and to Seller’s knowledge there are no
grounds for, any governmental agency requiring the correction of any condition with respect to the
Property, or any part thereof, by reason of a violation of any applicable federal, state, county or
municipal law, code, rule or regulation (including those respecting the Americans With Disabilities
Act), which has not been cured or waived.

4.1.15 To Seller’s knowledge, there is no pending or threatened request, application or
proceeding to alter or restrict the zoning or other use restrictions applicable to the Property;
there is no plan, study or effort by any governmental authority or agency or any private party or
entity that in any way affects or would affect the authorization of the current use and operation
of the Property.

4.1.16 Seller has not received any written notice of an intention to revoke any certificate of
occupancy, license, or permit issued in connection with the Property.

4.1.17 To Seller’s knowledge, there are no Hazardous Materials stored on, incorporated into,
located on, present in or used on the Property in violation of, and requiring remediation under,
any laws, ordinances, statutes, codes, rules or regulations as of the date of this Agreement or,
upon the Close of Escrow hereunder, in existence on the Close of Escrow. For purposes of this
Agreement, the term “Hazardous Materials” shall mean any substance which is or contains: (i) any
“hazardous substance” as now or hereafter defined in Section 101(14) of the Comprehensive
Environmental Response, Compensation and Liability Act of 1980, as amended (42 U.S.C. Section 9601
et seq.) (“CERCLA”) or any regulations promulgated under CERCLA; (ii) any “hazardous waste” as now
or hereafter defined the Recourse Conservation and Recovery Act (42 U.S.C. Section 6901 et seq.)
(“RCRA”) or regulations promulgated under RCRA; (iii) any substance regulated by the Toxic
Substances Control Act (15 U.S.C. Section 2601 et. seq.); (iv) gasoline, diesel fuel or other
petroleum hydrocarbons; (v) asbestos and asbestos containing materials, in any form, whether
friable or non-friable; (vi) polychlorinated biphenyls; (vii) radon gas: and (viii) any additional
substances or materials which are now or hereafter classified or considered to be hazardous or
toxic under any laws, ordinances, statutes, codes, rules, regulations, agreements, judgments,
orders and decrees now or hereafter enacted, promulgated, or amended, of the United States, the
state, the county, the city or any other political subdivision in which the Property is located and
any other political subdivision, agency or instrumentality exercising jurisdiction over the owner
of the Property, the Property or the use of the Property relating to pollution, the protection or
regulation of human health, natural resources or the environment, or the emission, discharge,
release or threatened release of pollutants, contaminants, chemicals or industrial, toxic or
hazardous substances or waste into the environment (including, without limitation, ambient air,
surface water, ground water or land or soil). Seller has received no notice that the Property or
any portion thereof contains any form of toxic mold. No treatment has been undertaken by Seller
with respect to termite or similar infestation, fungi, or dry rot on the Property other than normal
periodic service, and to the best of Seller’s knowledge, there is no damage to any portion of the
Property from termite or similar infestation, fungi or dry rot. Notwithstanding anything herein to
the contrary, Seller acknowledges that Hazardous Materials are utilized by certain tenants on the
Real Property. Seller represents that, to Seller’s knowledge, such use is in the ordinary course
such tenants’ business and in accordance with all applicable legal standards.

4.1.18 To Seller’s knowledge, there are no claims pending or unpaid bills which would result
in the creation of any lien on the Property for any improvements completed or in progress,
including, but not limited to, water, sewage, street paving, electrical or power improvements. To
Seller’s knowledge, there are no delinquent bills or claims in connection with any repair of the
Property or other work or material purchased in connection with the Property which will not be paid
by or at the Close of Escrow or placed in escrow pursuant to the provisions of this Agreement.

4.1.19 Seller has received no notices or requests from any insurance company issuing any
policy of insurance covering the Property requesting the performance of any work with respect to
the Property or the Improvements located thereon which has not been fully complied with.

4.1.20 Seller has not received any written notice relating to the operation of the Property
from any agency, board, commission, bureau or other instrumentality of any government, whether
federal, state or local, that, Seller is not in compliance in all material respects with all
applicable statutes, rules, regulations and requirements of all federal, state and local
commissions, boards, bureaus and agencies having jurisdiction over Seller and the Land and
Improvements. With respect to the Property, Seller has timely filed all reports, data and other
information required to be filed with such commissions, boards, bureaus and agencies where a
failure to file timely would have a material adverse effect on the transactions contemplated hereby
or the intended operation of the Land and Improvements.

4.1.21 Seller will not take or cause to be taken any action or fail to perform any obligation
which would cause any of the representations or warranties contained in this Agreement to be untrue
as of the Close of Escrow. Seller shall immediately notify Buyer, in writing, of any event or
condition known to Seller which occurs prior to the Close of Escrow hereunder, which causes a
material change in the facts relating to, or the truth of, any of the representations or
warranties.

4.1.22 The operating statements of the Property and the rent roll for the Property, which have
been given by Seller to Buyer pursuant to this Agreement or in connection with the transactions
contemplated hereunder shall be true and accurate in every material respect as of the date hereof
and at the Close of Escrow. Seller shall promptly inform Buyer in writing if there occurs any
(i) material adverse change in the condition, financial or otherwise, of the Property, or the
operation thereof, at any time prior to the Close of Escrow or (ii) if the operating statements of
the Property and the rent roll for the Property is amended, superseded, modified or supplemented.

4.1.23 No later than five (5) Business Days after the Effective Date, Seller shall provide a
complete, accurate and certified list of all Loan Documents to Buyer. Except as disclosed to Buyer
in such certification there has been (i) no modification to any Loan Document, and (ii) no default
by any party to any Loan Document.

4.1.24 Gary Verkinnes, Dr. Sam Elghor, Dr. Jeff Gerdes, or Ron Berg (collectively, the
“Governors”) are the individuals who are most knowledgeable about the Property.

As used herein, “to Seller’s knowledge” shall be deemed to mean the actual knowledge of the
Governors.

4.2 Buyer’s Representations

Buyer makes the following representations and warranties to Seller that, to the best of
Buyer’s knowledge:

4.2.1 Buyer is a duly formed and validly existing limited liability company in good standing
under the laws of the State of Delaware.

4.2.2 Buyer has full right, power and authority and is duly authorized to enter into this
Agreement and to perform each of these covenants on it part to be performed hereunder and to
execute and deliver and to perform its obligations under all documents required to be executed and
delivered by it pursuant to this Agreement and this Agreement constitutes the valid and legally
binding obligation of Buyer, enforceable against Buyer in accordance with its terms.

4.3 Survivability of Representations and Warranties

The representations, warranties and indemnities of Seller and Buyer set forth in this
Agreement are remade as of the Closing Date and shall not be deemed to be merged into or waived by
the instruments of Closing and shall survive for a period of nine (9) months after the Closing
Date.

4.4 Property Conveyed “As Is”

Except as may be expressly represented herein, in the exhibits attached hereto and in the
documents to be executed and delivered by Seller to Buyer at Closing, NEITHER SELLER NOR ANY OF ITS
AFFILIATES, REPRESENTATIVES OR ADVISORS HAVE MADE, OR SHALL BE DEEMED TO HAVE MADE, TO BUYER ANY
REPRESENTATION OR WARRANTY OTHER THAN THOSE EXPRESSLY MADE BY SELLER IN SECTION 4.1 HEREUNDER, NO
EXPRESS OR IMPLIED REPRESENTATION OR WARRANTY HAS BEEN MADE OR IS BEING MADE TO BUYER AND THERE ARE
NO EXPRESS OR IMPLIED CONDITIONS AS TO MERCHANTABILITY, SUITABILITY OR FITNESS FOR A PARTICULAR
PURPOSE, OR QUALITY, WITH RESPECT TO ANY OF THE PROPERTY BEING SO TRANSFERRED, OR AS TO THE
CONDITION OR WORKMANSHIP THEREOF OR THE ABSENCE OF ANY DEFECTS THEREIN, WHETHER LATENT OR PATENT
ALL OF WHICH ARE BEING TRANSFERRED “AS-IS” “WHERE, IS” WITH ALL FAULTS.

4.5 Leasing & Other Activities Prior to Closing

4.5.1 Leasing Activities. Seller shall not, after the end of the Due Diligence
Period, enter into any lease affecting the Property or any modification or amendment thereto, or
consent to any sublease under a lease, in each case, without the prior written consent of Buyer,
which may be given or withheld in Buyer’s sole discretion. Seller represents that no leasing
commissions, rent concessions or tenant improvement allowances will be due or are owing with
respect to any lease that may have previously affected the Property. Seller shall copy Buyer on
any and all correspondence received from or sent to tenants regarding the Tenant Leases at the
notice address below. In addition to the foregoing, Seller shall endeavor to obtain the CPM Lease
Amendment (as defined below) prior to the expiration of the Due Diligence Period.

4.5.2 Service Contracts. Seller shall not, after the end of the Due Diligence Period,
enter into any new service contracts for the Property or modifications, renewals or terminations of
any existing Contracts, without the written consent of Buyer, which consent may be given or
withheld in Buyer’s sole discretion. Effective at Closing, Seller shall terminate, at Seller’s
expense, any leasing commission agreements or management agreements (including the property
management agreement) applicable to the Property as well as any other service contract that Buyer
does not elect to assume.

4.5.3 Conducting Business. At all times prior to Closing, Seller shall continue to
(i) conduct business with respect to the Property in the same manner in which said business has
been heretofore conducted and (ii) insure the Property substantially as it is currently insured and
in any event in commercially reasonable amounts and in accordance with the requirements of any
mortgage or deed of trust affecting the Property.

4.5.4 Encumbrances. At all times prior to Closing, Seller shall not sell, mortgage,
pledge, encumber, hypothecate or otherwise transfer or dispose of all or any part of the Property
or any interest therein without the prior written consent of Buyer, which may be given or withheld
in Buyer’s sole discretion; and Seller shall not consent to, approve or otherwise take any action
with respect to zoning or any other governmental rules or regulations presently applicable to all
or any part of the Property.

4.5.5 Monthly Operating Statements. Seller shall endeavor to provide Buyer with a
copy of the monthly operating statement for the operation of the Property on or before the ten (10)
days after the end of each month commencing with the month during which the Effective Date occurs,
and continuing for each full calendar month thereafter until the Closing Date.

4.5.6 Compliance with Laws and Regulations. At all times prior to Closing, Seller
shall not knowingly take any action that would result in a failure to comply in all material
respects with all applicable statutes, rules, regulations and requirements of all federal, state
and local commissions, boards, bureaus and agencies applicable to the Real Property, it being
understood and agreed that prior to Closing, Seller will have the right to contest any of the same.

4.6 Indemnifications.

4.6.1 Seller’s Indemnity. In addition to any other applicable rights under this
Agreement, Seller agrees to indemnify, defend and hold Buyer and its officers, directors, partners,
members, agents, employees, affiliates, attorneys, heirs, successors and assigns (collectively,
“Buyer’s Indemnified Parties”) harmless from and against any and all liabilities, liens, claims,
damages, costs, expenses, suits or judgments paid or incurred by any of Buyer’s Indemnified Parties
and all expenses related thereto, including, without limitation, court costs and reasonable
attorneys’ fees arising out of or in any way connected or related to (i) any breach or
nonperformance by Seller of any provision or covenant contained in this Agreement or in any
certificate or other instrument or document furnished (or to be furnished) by Seller with respect
to the transactions contemplated hereunder, or (ii) the breach of any representation or warranty of
Seller contained in this Agreement. The indemnities set forth in this Section shall survive
Closing without limitation for a period of nine (9) months from the Closing. Provided, however,
that the indemnities set forth in this Section shall not apply to the extent of any item that by
this Agreement specifically becomes the obligation of Buyer after the Closing pursuant to the terms
and conditions of this Agreement.

4.6.2 Buyer’s Indemnity. In addition to any other applicable rights under this
Agreement, Buyer agrees to indemnify, defend and hold Seller and its officers, directors, partners,
members, agents, employees, affiliates, attorneys, heirs, successors and assigns (collectively,
“Seller’s Indemnified Parties”) harmless from and against any and all liabilities, liens, claims,
damages, costs, expenses, suits or judgments paid or incurred by any of Seller’s Indemnified
Parties and all expenses related thereto, including, without limitation, court costs and reasonable
attorneys’ fees arising out of or in any way connected or related to (i) any breach or
nonperformance by Buyer of any provision or covenant contained in this Agreement or in any
certificate or other instrument or document furnished (or to be furnished) by Buyer with respect to
the transactions contemplated hereunder, or (ii) the breach of any representation, warranty or
covenant of Buyer contained in this Agreement. The indemnities set forth in this Section shall
survive Closing without limitation for a period of nine (9) months from the Closing. Provided,
however, that the indemnities set forth in this Section shall not apply to the extent of any item
that specifically remains the obligation of Seller after the Closing pursuant to the terms and
conditions of this Agreement.

ARTICLE 5

CLOSING

5.1 Escrow Agent

The Closing shall occur through the Escrow opened at the Escrow Agent named in Section 1.4.
Escrow Agent is designated, authorized and instructed to act as Escrow Agent pursuant to the terms
of this Agreement.

5.2 Escrow Instructions; Opening of Escrow

This Agreement shall constitute initial escrow instructions to Escrow Agent. The parties
shall execute any additional escrow instructions reasonably required by Escrow Agent to consummate
the transaction provided for herein; provided, however, such additional escrow instructions shall
not modify the provisions of this Agreement, unless such instructions (i) clearly identify the
specific provisions being modified, (ii) state the modification in full, and (ii) are signed by
both parties. The parties shall open escrow by delivering an executed copy of this Agreement
executed by Buyer and Seller to Escrow Agent (“Opening of Escrow”). Upon receipt of the Agreement,
Escrow Agent shall acknowledge the Opening of Escrow as described below and its agreement to act as
the Escrow Agent hereunder by: (a) executing the Consent of Escrow Agent attached hereto; and
(b) delivering a copy of the executed Consent to Seller and Buyer.

5.3 Closing

“Close of Escrow” or “Closing” means the date Escrow Agent records the Deed in favor of Buyer.
The Closing shall take place on the Closing Date set forth in Section 1.5.1, as the same may be
adjusted, provided all conditions to the Closing have been satisfied or duly waived.

5.4 Conditions Precedent Favoring Buyer

In addition to any other conditions precedent in favor of Buyer as may be expressly set forth
elsewhere in this Agreement, Buyer’s obligations under this Agreement are subject to the timely
fulfillment of the conditions set forth in this Section 5.4 on or before the Closing Date, or such
earlier date as is set forth below. Buyer must exercise its rights under any such condition, by
delivering written notice to Seller on or before the Closing Date, otherwise such conditions are
deemed to be waived.

5.4.1 Seller shall have obtained the consent of Existing Lender to the Loan Assumption and
Buyer in its sole discretion shall have approved documents memorializing the Loan Assumption,
including modifications to the Loan Documents as Buyer may reasonably require.

5.4.2 Seller performing and complying in all material respects with all of the terms of this
Agreement to be performed and complied with by Seller prior to or at the Closing.

5.4.3 Seller shall have obtained and timely delivered to Buyer each of the items described in
Section 5.6 below including without limitation the Tenant Estoppels (as defined below) and an
estoppel certificate as to any restrictive covenants at record confirming that there are no
defaults or unpaid monetary amounts owed pursuant to such restrictive covenants.

5.4.4 No later than ten (10) Business Days prior to the Closing Date, the Seller shall have
entered into the CPM Lease Amendment (as defined below).

5.4.5 On the Closing Date, all of the representations and warranties of Seller set forth in
Section 4 hereof shall be true, accurate and complete.

5.4.6 At Closing, the Title Company shall issue to Buyer at Buyer’s cost an ALTA 2006 extended
coverage Owner’s Policy of Title Insurance (“Title Policy”) insuring Buyer’s fee simple title to
the Property for the sum equal to the Purchase Price conforming to the Required Title Condition set
forth in Section 2.2 above and containing such endorsements as Buyer shall have reasonably
required.

5.4.7 There shall have been no material adverse change in the physical condition of the
Property from the end of the Due Diligence Period through the Closing Date.

5.5 Conditions Precedent Favoring Seller

In addition to any other condition precedent in favor of Seller as may be expressly set forth
elsewhere in this Agreement, Seller’s obligations under this Agreement are expressly subject to the
timely fulfillment of the conditions set forth in this Section 5.5 on or before the Closing Date,
or such earlier date as is set forth below. Each condition may be waived in whole or part only by
written notice of such waiver from Seller to Buyer and written acceptance of such waiver by Buyer.

5.5.1 Buyer performing and complying in all material respects with all of the terms of this
Agreement to be performed and complied with by Buyer prior to or at the Closing.

5.5.2 Within fifteen (15) days of the Effective Date, Seller shall have received approval of
the purchase from the Seller’s general partner or other party required to approve the transaction
pursuant to Seller’s organizational documents; provided however, that if Seller does not obtain
such approval then Buyer shall be entitled to receive reimbursement of Buyer’s actual out of pocket
expenses incurred in conjunction with the transaction contemplated by this Agreement in addition to
any other amounts the Buyer is entitled to recover hereunder.

5.5.3 On the Closing Date, all of the representations of Buyer set forth in this Agreement
shall be materially true, accurate and complete.

5.6 Seller’s Deliveries

At the Closing or on the date otherwise specified below, Seller shall deliver or cause to be
delivered to Buyer, at Seller’s sole expense, each of the following items:

5.6.1 No later than ten (10) Business Days prior to the Closing Date, Seller shall provide an
executed copy of an amendment (the “CPM Lease Amendment”) to lease with the Center for Pain
Management. The CPM Lease Amendment shall include the following terms: (i) the leased premises
shall be no less than 8,401 square feet, (ii) the base rent shall be no less than seventeen dollars
($17.00) per square foot on a triple net basis, (iii) rent payments shall commence on or prior to
the Closing Date, and (iv) base rent shall be adjusted to reflect inflation on each anniversary of
the commencement date and shall in no event be adjusted below seventeen dollars ($17.00) per square
foot.

5.6.2 No later than five (5) Business Days prior to the Closing Date, Seller shall have
obtained an estoppel certificate from tenants that in the aggregate lease at least eighty-five
percent (85%) of the leased square footage of the Improvements, which shall include an estoppel
certificate from any tenant occupying more than five thousand (5,000) rentable square feet of space
in the Property. Each estoppel certificate shall be in a form substantially similar as Exhibit “C”
attached hereto, and dated no earlier than thirty (30) days prior to Closing (each a “Tenant
Estoppel”). Such estoppel shall be consistent with its respective Tenant Lease and shall not
reveal any default by Seller, any right to offset rent by the tenant, or any claim of the same and
shall be otherwise reasonably acceptable to Buyer.

5.6.3 No later than five (5) Business Days prior to the Closing Date, Seller shall have
obtained an estoppel certificate as to each restrictive covenant of record, which estoppel
certificate shall confirm that there are no defaults, no rights or claims to payment or
contribution for such restrictive covenant and shall be otherwise reasonably acceptable to Buyer.

5.6.4 A bill of sale, assignment and assumption of leases and contracts duly and originally
executed and acknowledged by Seller, in the form attached hereto as Exhibit “D”, which shall
transfer, convey, sell, assign and set over to Buyer all of Seller’s right, title and interest in
and to the balance of the Property, including without limitation: (i) the Personal Property; (ii)
Tenant Leases; (iii) the Warranties and Permits; and (iv) any Contracts Buyer elects to assume in
accordance with the terms of this Agreement.

5.6.5 Originals of all Tenant Leases (with all amendments and modifications thereto) relating
to the Property.

5.6.6 All keys in Seller’s possession to all locks on the Property and all documents in the
possession of Seller pertaining to each tenant, including all applications, correspondence and
credit reports.

5.6.7 A non-foreign person affidavit sworn to by Seller as required by Section 1445 of the
Internal Revenue Code.

5.6.8 Such evidence, documents, affidavits and indemnifications as may be reasonably required
by the Title Company as a precondition to the issuance of the Title Policy relating to:
(i) mechanics’ or materialmen’s liens; (ii) parties in possession; (iii) the status and capacity of
Seller and the authority of the person or persons who are executing the various documents on behalf
of Seller in connection with the sale of the Property; or (iv) any other matter reasonably required
to enable the Title Company to issue the Title Policy and endorsements thereto.

5.6.9 Originals of all documents in the possession of Seller relating to the operation of the
Property including all permits, licenses, approvals, plans, specifications, guaranties and
warranties.

5.6.10 A duly executed closing statement reflecting the adjustments and prorations required by
this Agreement (the “Closing Statement”).

5.6.11 Such evidence or documents as may reasonably be required by Buyer evidencing the power
and authority of the Seller and its respective members and the due authority of, and execution and
delivery by, any person or persons who are executing any of the documents required in connection
with the sale of the Property.

5.6.12 A duly executed and acknowledged General Warranty Deed, subject to the Required Title
Condition, that conveys title to the Real Property in favor of Buyer;

5.6.13 Such other instruments as may be reasonably required to consummate the transactions
contemplated by this Agreement.

5.7 Buyer’s Deliveries

At the Closing, Buyer shall deliver to Seller the following items:

5.7.1 Immediately available federal funds sufficient to pay the Purchase Price (less the
Deposit and any prorations required by this Agreement) and Buyer’s share of all escrow costs and
closing expenses.

5.7.2 Duly executed and acknowledged originals of the Assignment and the Closing Statement.

5.7.3 Such evidence or documents as may reasonably be required by the Title Company evidencing
the status and capacity of Buyer and the authority of the person or persons who are executing the
various documents on behalf of Buyer in connection with the purchase of the Property.

5.7.4 Such evidence or documents as may reasonably be required by Seller evidencing the power
and authority of the Buyer and the due authority of, and execution and delivery by, any person or
persons who are executing any of the documents required in connection with the purchase of the
Property by Buyer.

5.7.5 Such other instruments as may be reasonably required to consummate the transactions
contemplated by this Agreement.

5.8 Costs, Prorations and Credits

5.8.1 Closing Costs. Buyer and Seller shall each pay their own legal fees related to
the preparation of this Agreement and all documents required to settle the transaction contemplated
hereby. Buyer shall pay (i) all costs associated with its investigation of the Property, including
the cost of appraisals, updated survey, architectural, engineering, credit and environmental
reports, and (ii) all title insurance premiums. Seller shall pay (a) the cost to deliver a title
insurance commitment (except as set forth above), and (b) all transfer, assumption or waiver fees
associated with any association, declarant or easement holder that holds any right in the Property
unless otherwise set forth herein. Buyer and Seller shall share equally the cost of (a) all
transfer taxes and documentary stamp charges of any jurisdiction, (b) recording fees, and (c) all
escrow charges. Any and all other purchase and sale closing costs shall be paid in accordance with
the custom of the local jurisdiction in which the Property is located.

5.8.2 Prorations. The following shall be prorated, credited, debited and adjusted
between Seller and Buyer as of 12:01 a.m. on the day of the Closing (except as otherwise provided)
in accordance with this section. For purposes of calculating prorations, Buyer shall be deemed to
be in title to the Property, and therefore entitled to the income and responsible for the expenses,
for the entire day upon which the Closing occurs. Except as hereinafter expressly provided, all
prorations shall be done on the basis of a three hundred sixty-five (365) day year and the actual
number of days elapsed to the Closing Date or the actual number of days in the month in which the
Closing occurs and the actual number of days elapsed in such month to the Closing Date, as
applicable.

(a) Rents. Buyer will receive a credit at closing for all rents collected by Seller
prior to the Closing Date and allocable to the period from and after the Closing Date based upon
the actual number of days in the month. No credit shall be given Seller for accrued and unpaid rent
or any other non-current sums due from tenants until these sums are paid, and Seller shall retain
the right to collect any such rent and, if a legal action has been commenced by Seller before the
close of Escrow, Seller may continue to pursue such legal action, provided Seller does not sue to
evict any tenants or terminate any Tenant Leases. Buyer shall cooperate with Seller after the
Closing Date to collect any rent under the Tenant Leases which has accrued as of the Closing Date;
provided, however, Buyer shall not be obligated to sue any tenants or exercise any legal remedies
under the Tenant Leases or to incur any expense over and above its own regular collection expenses.
All payments collected from tenants after the Closing Date shall first be applied to the month in
which the Closing occurs, then to any rent due to Buyer for the period after the Closing Date and
finally to any rent due to Seller for the periods prior to Closing Date; provided, however,
notwithstanding the foregoing, if Seller collects any payments from tenants after the Closing Date
through its own collection efforts, Seller may first apply such payments to rent due Seller for the
period prior to the Closing Date.

(b) CAM Expenses. To the extent that tenants are reimbursing the landlord for common
area maintenance and other operating expenses (collectively, “CAM Charge(s)”), CAM Charges shall be
prorated at Closing and again subsequent to Closing, as of the Closing Date on a lease-by-lease
basis with each party being entitled to receive a portion of the CAM Charges payable under each
Tenant Lease for the CAM Lease Year (as defined below) in which Closing occurs, which portion shall
be equal to the actual CAM Charges incurred during the party’s respective periods of ownership of
the Property during the CAM Lease Year. As used herein, the term “CAM Lease Year” means the twelve
(12) month period as to which annual CAM Charges are owed under each Tenant Lease. Five (5) days
prior to the Closing Date Seller shall submit to Buyer an itemization of its actual CAM Charge
expenses through such date and the amount of CAM Charges received by Seller as of such date,
together with an estimate of CAM charges to be incurred to, but not including, the Closing Date, In
the event that Seller has received CAM Charge payments in excess of its actual CAM Charge expenses,
Buyer shall be entitled to receive a credit against the Purchase Price for the excess. In the event
that Seller has received CAM Charge payments less than its actual CAM Charge expenses, to the
extent that the Tenant Leases provide for a “true up” at the end of the CAM lease Year, Seller
shall be entitled to receive any deficit but only after Buyer has received any true up payment from
the tenant. Upon receipt by either party of any CAM Charge true up payment from a tenant, the party
receiving the same shall provide to the other party its allocable share of the “true up” payment
within five (5) days of the receipt thereof. To assist Buyer in preparing the “true up”
reconciliation at the end of the CAM Lease Year, Seller shall deliver to Buyer an approved CAM
reconciliation up to but not including the Closing Date within thirty (30) days after Closing.

(c) Security Deposits, Unpaid Rent Concessions, Unpaid Tenant Improvement Allowances and
Other Tenant Credits. The amount of all unapplied tenant security deposit, any accrued
interest due any tenant thereon, unpaid rent concessions due under any Tenant Lease, unpaid tenant
improvement allowances owing under any Tenant Lease and the amount of any other credits due any
tenant shall be credited to Buyer based on a rental statement prepared by Seller and approved by
Buyer (which statement must be consistent with its respective Tenant Lease, the estoppel
certificate and the final rent roll).

(d) Property Taxes. All real property taxes that were due and payable in any year
prior to the year of Closing, shall be paid by Seller on or before the Closing. Real property
taxes and special assessments certified for payment therewith that are due and payable for the year
of Closing shall be prorated on the basis of the most recent assessment and levy. Buyer shall be
responsible for all property taxes and special assessments certified therewith in all years
following the year of Closing. If the most recent tax assessment and levy is not for the current
tax year, then the parties shall reprorate within sixty (60) days of the receipt of the tax
assessment and levy for the current tax year. If after the Closing there is any retroactive
increase in the real or personal property taxes or assessments imposed of the Property: (1) if such
increase relates to taxes or special assessments due and payable in the year in which the Closing
occurred, then such increase shall be prorated by Seller and Buyer on a per diem basis based on
their respective periods of ownership during their period to which such increase applies, (2) if
such increase relates to taxes or special assessments applied to any year subsequent to the year
which the Closing occurred, then such increase shall be the obligation of Buyer, and (3) if such
increase relates to taxes or special assessments applied to any year prior to the year in which the
Closing occurred, then such increase shall be the obligation of Seller. Any and all refunds,
credits, claims or rights to appeal respecting the amount of any real property taxes or other taxes
or assessments charged in connection with the Property for any period shall belong to Buyer
following the Closing, except that if prior to the end of the Due Diligence Period Seller has
applied for a property tax refund or has appealed the County Assessor’s valuation of the Property
for any period of time prior to the Closing Date, then Seller shall be entitled to any refund
applicable to such period. Buyer shall assume any and all other levied or pending special
assessments as of the Closing Date related to the Real Property.

(e) Private Assessments. Payments due under any assessments imposed by private
covenant shall be prorated as of the Closing.

(f) Operating Expenses. All operating expenses (including all charges under the
Service Contracts and agreements assumed by Buyer) shall be prorated, and as to each service
provider, operating expenses payable or paid to such service provider in respect to the billing
period of such service provider in which the Closing occurs (the ‘Current Billing Period’), shall
be prorated on a per diem basis based upon the number of days in the Current Billing Period prior
to the Close Date and the number of days in the Current Billing Period from and after the Closing
Date, and assuming that all charges are incurred uniformly during the Current Billing Period. If
actual bills for the Current Billing Period are unavailable as of the Closing Date, then such
proration shall be made on an estimated basis based upon the most recently issued bills, subject to
readjustment upon receipt of actual bills.

(g) Leasing Commissions. At Closing, Buyer shall receive a credit for any tenant
improvement costs, leasing commissions or rent concessions for any Tenant Lease that have not been
fully utilized at Closing, including without limitation, those applicable to the CPM Lease
Amendment.

(h) Items Not Prorated. Seller and Buyer agree that (a) on the Closing Date, the
Property will not be subject to any financing arranged by Seller, except for the Existing Loan; (b)
none of the insurance policies relating to the Property will be assigned to Buyer and Buyer shall
be responsible for arranging for its own insurance as of the Closing Date; and (c) utilities,
including telephone, electricity, water, and gas, shall be read on the Closing Date and Buyer shall
be responsible for all the necessary actions needed to arrange for utilities to be transferred to
the name of Buyer on the Closing Date, including the posting of any required deposits and Seller
shall be entitled to recover and retain from the providers of such utilities any refunds or
overpayments to the extent applicable to the period prior to the Closing Date, and any utility
deposits which it or its predecessors may have posted. Accordingly, there will be no prorations for
debt service, insurance or utilities. In the event a meter reading is unavailable for any
particular utility, such utility shall be prorated in the manner provide.

(i) Other Items. All other items customarily prorated or required by any other
provision of this Agreement to be prorated or adjusted.

5.8.3 Loan Assumption. Buyer shall receive a credit at Closing in an amount equal to
the sum of the unpaid principal balance of the Loan, and any interest, default interest, or other
sum that is due and payable to Existing Lender on the Closing Date.

5.8.4 Calculation / Re-prorations. Seller shall prepare and deliver to Buyer no later
than three (3) business days prior to the Closing Date an estimated closing statement which shall
set forth all costs payable, and the prorations and credits provided for in this Agreement and to
the extent Seller does not timely deliver the estimated closing statement to Buyer, Buyer shall
have the right, but not the obligation, to extend the Closing Date by the number of days Seller is
delinquent in delivering such estimated closing statement to Buyer. Any item which cannot be
finally prorated because of the unavailability of information shall be tentatively prorated on the
basis of the best data then available and adjusted when the information is available in accordance
with this subsection. Buyer shall notify Seller within two (2) days after its receipt of such
estimated closing statement of any items which Buyer disputes and the parties shall attempt in good
faith to reconcile any differences not later than one (1) day before the Closing Date. The
estimated closing statement as adjusted as aforesaid and approved in writing by the parties shall
be referred to therein as the ‘Closing Statement’. If the prorations and credits made under the
Closing Statement shall prove to be incorrect or incomplete for any reason, then either party shall
be entitled to an adjustment to correct the same; provided, however, that any adjustment shall be
made, if at all, within sixty (60) days after the Closing Date except with respect to CAM Charges,
taxes and assessments, in which case such adjustment shall be made within sixty (60) days after the
information necessary to perform such adjustment is available), and if a party fails to request an
adjustment to the Closing Statement by a written notice delivered to the other party within the
applicable period set forth above (such notice to specify in reasonable detail the items within the
Closing Statement that such party desires to adjust and the reasons for such adjustment), then the
prorations and credits set forth in the Closing Statement shall be binding and conclusive against
such party.

5.8.5 Indemnification. Buyer and Seller shall each indemnify, protect, defend and
hold the other harmless from and against any claim in any way arising from the matters for which
the other receives a credit or otherwise assumes responsibility pursuant to this Section.

5.8.6 Survival. The provisions of this Section 5.8 shall survive the Closing.

5.9 Distribution of Funds and Documents

At the Close of Escrow, Escrow Agent shall do each of the following:

5.9.1 Payment of Encumbrances. Pay the amount of those monetary liens that are not
permitted as part of the Required Title Condition in accordance with the demands approved by
Seller, utilizing funds to which Seller shall be entitled upon Close of Escrow and funds (if any)
deposited in Escrow by Seller.

5.9.2 Non-Recorded Documents. Deliver by overnight courier (or as otherwise requested
by the intended recipient): (i) the Title Policy to Buyer; (ii) each other non-recorded document
received hereunder to the payee or person acquiring rights thereunder or for whose benefit said
document was acquired; and (iii) a copy of each recorded document, conformed to show the recording
data thereon, to each party.

5.9.3 Distribution of Funds. Deliver (i) to Seller, or order, the cash portion of the
Purchase Price, adjusted for prorations, charges and other credits and debits provided for herein;
and (ii) to Buyer, or order, any excess funds delivered to Escrow Agent by Buyer. Such funds shall
be delivered by wire transfer or cashier’s check in accordance with instructions for Seller and
Buyer; if no instructions are given, Escrow Agent shall deliver such funds by Escrow Agent’s check
via overnight courier (or as otherwise requested by the intended recipient) to the appropriate
party at the address set forth for notice in this Agreement.

5.10 Completion of Documents

Escrow Agent is authorized to insert the date of Closing and otherwise to complete the
documents deposited in Escrow, where appropriate and consistent with this Agreement.

5.11 Possession

Possession of the Property shall be delivered to Buyer by Seller at the Closing, subject only
to the Tenant Leases and rights arising under the matters set forth in the Preliminary Report and
permitted as part of the Required Title Condition. Seller and Buyer covenant and agree to execute
at Closing a written notice of the acquisition of the Property by Buyer, in sufficient copies for
transmittal to each tenant affected by the sale and purchase of the Property and properly addressed
to each tenant. Such notice shall be prepared by Seller, at Seller’s cost and expense, and
approved by Buyer, shall notify the tenant of the sale and transfer and shall contain appropriate
instructions relating to the payment of future rentals, the giving of future notices and other
matters reasonably required by Buyer or required by law. Unless a different procedure is required
by applicable law, in which event such laws shall be controlling, Seller agrees to transmit or
otherwise deliver such letters to the Tenant promptly after the Closing.

ARTICLE 6

TERMINATION AND DEFAULT

6.1 BUYER DEFAULT

IF THE SALE CONTEMPLATED HEREBY IS NOT CONSUMMATED BECAUSE OF A DEFAULT BY BUYER IN ITS
OBLIGATION TO PURCHASE THE PROPERTY IN ACCORDANCE WITH THE TERMS OF THIS AGREEMENT AFTER SELLER HAS
PERFORMED OR TENDERED PERFORMANCE OF ALL OF ITS MATERIAL OBLIGATIONS IN ACCORDANCE WITH THIS
AGREEMENT, THEN: (A) THIS AGREEMENT SHALL TERMINATE; (B) THE DEPOSIT SHALL BE PAID TO AND RETAINED
BY SELLER AS LIQUIDATED DAMAGES; AND (C) SELLER AND BUYER SHALL HAVE NO FURTHER OBLIGATIONS TO EACH
OTHER EXCEPT THOSE WHICH SURVIVE THE TERMINATION OF THIS AGREEMENT. BUYER AND SELLER ACKNOWLEDGE
THAT THE DAMAGES TO SELLER IN THE EVENT OF A BREACH OF THIS AGREEMENT BY BUYER WOULD BE DIFFICULT
OR IMPOSSIBLE TO DETERMINE, THAT THE AMOUNT OF THE DEPOSIT PLUS INTEREST REPRESENTS THE PARTIES’
BEST AND MOST ACCURATE ESTIMATE OF THE DAMAGES THAT WOULD BE SUFFERED BY SELLER IF THE TRANSACTION
SHOULD FAIL TO CLOSE AND THAT SUCH ESTIMATE IS REASONABLE UNDER THE CIRCUMSTANCES EXISTING AS OF
THE DATE OF THIS AGREEMENT AND UNDER THE CIRCUMSTANCES THAT SELLER AND BUYER REASONABLY ANTICIPATE
WOULD EXIST AT THE TIME OF SUCH BREACH. BUYER AND SELLER AGREE THAT SELLER’S RIGHT TO RETAIN THE
DEPOSIT TOGETHER WITH ANY INTEREST AND EARNINGS EARNED THEREON SHALL BE SELLER’S SOLE REMEDY, AT
LAW AND IN EQUITY, FOR BUYER’S FAILURE TO PURCHASE THE PROPERTY IN ACCORDANCE WITH THE TERMS OF
THIS AGREEMENT. SELLER HEREBY WAIVES ANY RIGHT TO AN ACTION FOR SPECIFIC PERFORMANCE OF ANY
PROVISIONS OF THIS AGREEMENT.

	 	 	 
	BY PLACING THEIR INITIALS HERE:

	 	

	SELLER—,

	 	BUYER—,

THE PARTIES AGREE TO BUYER DEFAULT PROVISIONS AS SET FORTH ABOVE.

6.2 Seller’s Default

If prior to Closing Seller fails to perform any of its obligations or is otherwise in default
hereunder or willfully causes the failure of a condition precedent pursuant to Section 5.4 hereof,
Buyer shall have the right to exercise any or all of the following remedies:

6.2.1 Waive such failure and proceed to the Closing with no reduction in the Purchase Price;
provided, however, that this provision will not limit Buyer’s right to receive reimbursement for
attorney’s fees pursuant to Section 9.8 below in connection with any legal proceedings instituted
by either party or Escrow Agent with respect to the enforcement of this Agreement, nor waive or
affect Seller’s indemnity obligations under this Agreement or Buyer’s rights to enforce those
indemnity obligations, nor waive or affect any of Seller’s other obligations under this Agreement
to be performed after the Closing or Buyer’s rights to enforce those obligations.

6.2.2 Exercise any of its other rights or remedies Buyer may have at law or in equity,
including without limitation an action for specific performance to cause Seller to convey the
Property to Buyer pursuant to the terms and conditions of this Agreement.

6.2.3 Terminate this Agreement by notice to Seller and Escrow Agent to that effect, to recover
the full amount of the Deposit and all earnings thereon, to receive reimbursement of Buyer’s
actually incurred out of pocket costs in conjunction with the Agreement and to recover all damages
and seek such other relief at law or in equity to which Buyer may be entitled as a result of
Seller’s breach. Notwithstanding anything to the contrary, Buyer shall not be required to fund the
balance of the Purchase Price in order to enforce its remedies under this Agreement.

ARTICLE 7

CASUALTY DAMAGE OR CONDEMNATION

7.1 Casualty

If the Improvements are damaged by casualty prior to the Closing and either (i) the casualty
results in loss or damage in an amount valued greater than One Hundred Fifty Thousand Dollars
(150,000.00), or (ii) the nature of such casualty results in a circumstance whereby a tenant under
the Tenant Leases may terminate its lease or receive a rent abatement, then Buyer shall have the
sole option to elect either to:

(a) acquire the Property as is (without reduction in the Purchase Price), plus an assignment
without recourse or credit of any insurance proceeds payable by virtue of such loss or damage plus
a credit for any deductible under said polity; or

(b) terminate this Agreement and receive back the Deposit.

Such right must be exercised within thirty (30) days from the date Seller provides Buyer with
notice of the loss of the event giving rise to such right. If Buyer fails to provide notice of an
election, then Buyer shall have been deemed to elect (b) above.

7.2 Condemnation

In the event that any portion of the Real Property should be condemned prior to the Closing,
at Buyer’s sole option, elect either to:

(a) terminate this Agreement and receive back the Deposit; or

(b) close the transaction contemplated by this Agreement.

In all other cases, or if Buyer elects to proceed under Section 7.2(b), Buyer shall purchase
the Property in accordance with the terms hereof (without reduction in the Purchase Price) and
Seller shall assign to Buyer at Closing all condemnation proceeds payable as a result of such
condemnation. Buyer shall be deemed to have elected to proceed under Section 7.2(b) unless, within
thirty (30) days from written notice of the condemnation, Buyer provides Seller with written notice
that Buyer elects to terminate this Agreement pursuant to Section 7.2(a).

ARTICLE 8

REAL ESTATE COMMISSION

8.1 Commissions

Buyer and Seller each represent to the other that no broker’s or real estate commissions or
other finder’s fees, other than a commission payable by Seller to Northco Real Estate Services, are
or shall be due in respect to this transaction by reason of any agreement made or which may be
alleged to have been made by Buyer or Seller. At Closing, Seller shall pay (i) all commissions and
fees owed to Northco Real Estate Services pursuant to Seller’s separate agreement with Northco Real
Estate Services. Each party agrees to indemnify and hold harmless the other from and against any
and all claims, demands or the cost or expense thereof, including reasonable attorney’s fees,
arising out of any broker’s commission, fee or other compensation due or alleged to be due in
connection with the transactions contemplated by this Agreement based upon an agreement alleged to
have been made or other action alleged to have been taken by the indemnifying party.

ARTICLE 9

MISCELLANEOUS

9.1 Entire Agreement

This Agreement constitutes the entire agreement between the parties hereto with respect to the
transactions contemplated herein, and it supersedes all prior discussions, understandings or
agreements between the parties. All Exhibits and Schedules attached hereto are a part of this
Agreement and are incorporated herein by reference.

9.2 Binding On Successors and Assigns

Subject to Section 9.3, this Agreement shall be binding upon and inure to the benefit of the
parties hereto and their respective successors and assigns.

9.3 Assignment by Buyer

Buyer shall have the right to assign this Agreement to any third party or parties and no
consent on the part of Seller shall be required for such assignment, provided however, that any
such assignment shall not relieve Buyer of its liabilities and obligations hereunder, and Seller
shall be given written notification of such assignment.

9.4 Waiver

The excuse or waiver of the performance by a party of any obligation of the other party under
this Agreement shall only be effective if evidenced by a written statement signed by the party so
excusing or waiving. No delay in exercising any right or remedy shall constitute a waiver thereof,
and no waiver by Seller or Buyer of the breach of any covenant of this Agreement shall be construed
as a waiver of any preceding or succeeding breach of the same or any other covenant or condition of
this Agreement.

9.5 Governing Law

This Agreement shall be governed by and construed under the internal laws of the State of
Minnesota without regard to the principles of conflicts of law.

9.6 Counterparts

This Agreement may be executed in any number of counterparts and it shall be sufficient that
the signature of each party appear on one or more such counterparts. All counterparts shall
collectively constitute a single agreement. Originals transmitted by facsimile or electronic mail
shall be considered original in all respects.

9.7 Notices.

All notices, demands and other communications of any type given by any party hereunder,
whether required by this Agreement or in any way related to the transaction contracted for herein,
shall be void and of no effect unless given in accordance with the provisions of this Section. All
notices shall be in writing and shall be delivered (i) by courier; (ii) by Federal Express or other
nationally recognized overnight delivery service; (iii) by facsimile; or (iv) by e-mail. Notices
delivered by facsimile or e-mail must be followed by confirmation via Federal Express or other
nationally recognized overnight delivery service. Notices shall be deemed received (i) if by
courier, upon delivery or refusal of same; (ii) if by Federal Express or other nationally
recognized overnight delivery service, the business day following deposit; (iii) if by facsimile,
upon confirmation of transmission; and (iv) immediately following e-mail transmission. Any notice
received on a non-business day or after 5:00 p.m. Pacific Time on a business day shall be deemed
received on the next business day. Notices shall be given to the following addresses:

To Seller: Stingray Properties, LLC

6975 Saukview Drive Saint Cloud, Minnesota 56303 Attn:
Gary Verkinnes Phone: (320) 251-9221 Facsimile: (320)
251-9388 E-mail: garyv@cornerstonestcloud.com

	 	 	 
	And with a copy to:
	 	Gray Plant Mooty

1010 West St. Germain Street

Suite 500

Saint Cloud, Minnesota 56301

Attn: Kevin O’Driscoll

Phone: (320) 252-4414

Facsimile: (320) 259-8162

E-mail: kevin.odriscoll@gpmlaw.com

	 	 	 
	To Buyer:
	 	Grubb & Ellis Equity Advisors, LLC

1551 North Tustin Avenue, Suite 200

Santa Ana, California 92705

Attn: Danny Prosky

Phone: (714) 667-8252

Facsimile: (714) 975-2199

E-mail: Danny.Prosky@Grubb-Ellis.com

	And with a copy to:
	 	Gregory Kaplan, PLC

7 East Second Street

Richmond, Virginia 23224

Attn: Joseph J. McQuade

Telephone: (804) 916-9027

Facsimile: (804) 916-9127

E-Mail: jmcquade@gregkaplaw.com

Any address or name specified above may be changed by notice given to the addressee by the other
party in accordance with this Section 9.7. The inability to deliver notice because of a changed
address of which no notice was given as provided above, or because of rejection or other refusal to
accept any notice, shall be deemed to be the receipt of the notice as of the date of such inability
to deliver or rejection or refusal to accept. Any notice to be given by any party hereto may be
given by the counsel for such party.

9.8 Attorneys’ Fees

In the event of a judicial or administrative proceeding or action by one party against the
other party with respect to the interpretation or enforcement of this Agreement, the prevailing
party shall be entitled to recover reasonable costs and expenses including, without limitation,
reasonable attorneys’ fees and expenses, whether at the investigative, pretrial, trial or appellate
level. The prevailing party shall be determined by the court based upon an assessment of which
party’s major arguments or position prevailed.

9.9 IRS Real Estate Sales Reporting

Buyer and Seller agree that Escrow Agent shall act as “the person responsible for closing” the
transaction which is the subject of this Agreement pursuant to Internal Revenue Code
Section 6045(e) and shall prepare and file all informational returns, including without limitation,
IRS Form 1099-S, and shall otherwise comply with the provisions of Internal Revenue Code
Section 6045(e).

9.10 Time Periods

If the time for performance of any obligation hereunder expires on a day that is not a
Business Day, the time for performance shall be extended to the next Business Day.

9.11 Modification of Agreement

No modification of this Agreement shall be deemed effective unless in writing and signed by
the party against whom enforcement is sought.

9.12 Further Instruments

Each party, promptly upon the request of the other, shall execute and have acknowledged and
delivered to the other or to the Escrow Agent, as may be appropriate, any and all further
instruments reasonably requested or appropriate to evidence or give effect to the provisions of
this Agreement and which are consistent with the provisions of this Agreement.

9.13 Descriptive Headings; Word Meaning

The descriptive headings of the paragraphs of this Agreement are inserted for convenience only
and shall not control or affect the meaning or construction of any provisions of this Agreement.
Words such as “herein,” “hereinafter,” “hereof’ and “hereunder” when used in reference to this
Agreement, refer to this Agreement as a whole and not merely to a subdivision in which such words
appear, unless the context otherwise requires. The singular shall include the plural and the
masculine sender shall include the feminine and neuter, and vice versa, unless the context
otherwise requires. The word “including” shall not be restrictive and shall be interpreted as if
followed by the words “without limitation.”

9.14 Business Day

As used herein, the term “Business Day” means any day other than Saturday, Sunday and any day
which is a legal holiday in the State of Minnesota.

9.15 Construction of Agreement

This Agreement shall not be construed more strictly against one party than against the other
merely by virtue of the fact that it may have been prepared primarily by counsel for one of the
parties, it being recognized that both Buyer and Seller have contributed substantially and
materially to the preparation of this Agreement.

9.16 Severability

The parties hereto intend and believe that each provision in this Agreement comports with all
applicable local, state and federal laws and judicial decisions. However, if any provision in this
Agreement is found by a court of law to be in violation of any applicable local, state or federal
law, statute, ordinance, administrative or judicial decision, or public policy, or if in any other
respect such a court declares any such provision to be illegal, invalid, unlawful, void or
unenforceable as written, then it is the intent of all parties hereto that, consistent with and
with a view towards preserving the economic and legal arrangements among the parties hereto as
expressed in this Agreement, such provision shall be given force and effect to the fullest possible
extent, and that the remainder of this Agreement shall be construed as if such illegal, invalid,
unlawful, void or unenforceable provision were not contained herein, and that the rights,
obligations and interests of the parties under the remainder of this Agreement shall continue in
full force and effect.

9.17 Exclusivity

After the Effective Date, Seller and its respective agents, representatives and employees
shall immediately cease all marketing of the Property until such time as this Agreement is
terminated and Seller shall not directly or indirectly make, accept, negotiate, entertain or
otherwise pursue any offers for the sale of the Property.

9.18 Section 1031 Exchange

Either party may consummate the purchase or sale of the Property as part of a so-called like
kind exchange (an “Exchange”) pursuant to section 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
an Exchange nor shall the consummation or accomplishment of any Exchange be a condition precedent
or condition subsequent to a party’s obligations under this Agreement; (ii) any party desiring an
Exchange shall effect its Exchange through an assignment of this Agreement, or its rights under
this Agreement, to a qualified intermediary and the other party shall not be required to take an
assignment of the purchase agreement for the relinquished or replacement property or be required to
acquire or hold title to any real property for purposes of consummating such Exchange; and
(iii) the party desiring an Exchange shall pay any additional costs that would not otherwise have
been incurred by Buyer or Seller had such party not consummated its purchase or sale through an
Exchange. Neither party shall by this agreement or acquiescence to an Exchange desired by the
other party (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 the other party that such party’s
Exchange in fact complies with section 1031 of the Code. In connection with such cooperation,
Seller agrees, upon request of Buyer to “direct deed” for actual interests in the property to
designees of Buyer.

9.19 Cooperation with S-X 3-14 Audit

The Seller acknowledges that Buyer intends to assign all of its rights, title and interest in
and to this Agreement.  The assignee may be a publicly registered company (“Registered Company”)
promoted by the Buyer.  The Seller acknowledges that it has been advised that if the purchaser is a
Registered Company, the assignee is required to make certain filings with the Securities and
Exchange Commission (the “SEC Filings”) that relate to the most recent pre-acquisition fiscal year
(the “Year”) and the current fiscal year through the date of acquisition (the “stub period”) for
the Property. To assist the assignee in preparing the SEC Filings, the Seller agrees to provide
the assignee with the following: (i) access to bank statements for the Year and stub period; (ii)
rent roll as of the end of the Year and stub period; (iii) operating statements for the Year and
stub period; (iv) access to the general ledger for the Year and stub period; (v) cash receipts
schedule for each month in the Year and stub period; (vi) access to invoice for expenses and
capital improvements in the Year and stub period; (vii) accounts payable ledger and accrued expense
reconciliations; (viii) check register for the 3-months following the Year and stub period; (ix)
all leases and 5-year lease schedules; (x) copies of all insurance documentation for the Year and
stub period; (xi) copies of accounts receivable aging as of the end of the Year and stub period
along with an explanation for all accounts over 30 days past due as of the end of the Year and stub
period; (xii) signed representation letter in the form attached hereto as Exhibit “E”, and (xiv) to
the extent necessary, a signed audit letter in the form attached hereto as Exhibit “F”.

9.20 Seller Guarantor

Seller Guarantor joins in this Agreement for the purpose of guarantying compliance by Seller
with all covenants of Seller under this Agreement and under the documents to be signed at Closing.
Seller Guarantor agrees to be jointly and severally responsible for all of Seller’s obligations
under this Agreement and the documents to be delivered at Closing.

9.21 Buyer’s Disclosures

Seller acknowledges that Buyer is the subsidiary of a Real Estate Investment Trust and that,
as such, it is subject to certain filing and reporting requirements in accordance with federal laws
and regulations, including but not limited to, regulations promulgated by the Securities and
Exchange Commission. Accordingly, and notwithstanding any provision of this Agreement or the
provisions of any other existing agreement between the parties hereto to the contrary, Buyer may
publically file, disclose, report or publish any and all information related to this transaction
that may be reasonably interpreted as being required by federal law or regulation.

	 	9.22	 	Minnesota Disclosures

To Seller’s knowledge, no methamphetamine production has occurred on the Real Property. To
Seller’s knowledge, there are no individual sewage treatment systems on the Real Property. To
Seller’s knowledge, the Real Property is not subject to airport zoning regulations required to be
disclosed by Buyer. Seller shall deliver a well disclosure in a form required by Minnesota
statutes at the time of Closing for any well located on the Real Property.

	 	9.23	 	Buyer Covenants

9.23.1 Buyer shall use the name “Center for Neurosurgery and Spine” to identify the Property
for a period of time ending on a date that is the earlier of five (5) years from the Closing Date
or the date on which the Buyer no longer owns the title to the Property. The provisions of this
Section 9.23.1 shall not be deemed to be merged or waived by the instruments of Closing and shall
survive until a date that is the earlier of five (5) years from the Closing Date or the date on
which the Buyer no longer owns the title to the Property.

9.23.2 Buyer shall apply for the assumption of the Existing Loan through the local branch of
Existing Lender.

[Remainder of page intentionally left blank; signatures to follow on next pages.]

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

SELLER:

Stingray Properties, LLC,

a Minnesota limited liability company

By: /s/ Jeff Gerdes

Name: Jeff Gerdes

Its: Partner

SELLER GUARANTOR:

Crystal Blue Properties, LLC,

a Minnesota limited liability company

By: /s/ Ron Berg

Name: Ron Berg

Its: Partner

Sylvan Holdings, LLC,

a Minnesota limited liability company

By: /s/ Jeff Gerdes

Name: Jeff Gerdes

Its: Partner

Dr. Samuel Elghor, an individual

/s/ Samuel Elghor

1

BUYER:

Grubb & Ellis Equity Advisors, LLC,

a Delaware limited liability company

By: /s/ Andrea R. Biller

Name: Andrea R. Biller

Its: Executive Vice President

2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00167-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00167-of-00352.parquet"}]]