Document:

Exhibit 10.19

 

FIRST
AMENDMENT TO LEASE

 

THIS FIRST
AMENDMENT TO LEASE (this “Amendment”) is made this 14 day of November, 2005 by
and between ARLINGTON GATEWAY INVESTORS, LLC,
a Virginia limited liability company (“Landlord”), successor-in-interest to Arlington
Office, L.L.C., and WATSON WYATT &
COMPANY, a Delaware corporation (“Tenant”).

 

WITNESSETH:

 

WHEREAS, by
Deed of Lease dated April 27, 2004 (the “Lease”), Landlord’s
predecessor-in-interest leased unto Tenant certain premises on the fourth (4th),
fifth (5th), sixth (6th), seventh (7th), and
eighth (8th) floors (collectively, the “Premises”) of that certain
office building (the “Building”) known by street address as 901 North Glebe
Road, Arlington, Virginia, together with certain storage space containing
approximately 1,000 usable square feet of space in the Building; and

 

WHEREAS,
Landlord and Tenant have agreed to permit Tenant to lease approximately 200
usable square feet of additional storage space on the eighth (8th)
floor of the Building (such 200 usable foot area is herein referred to as the “First
Expansion Storage Space” all as more fully delineated on Exhibit ”A”
attached hereto) on the terms and conditions contained herein; and

 

WHEREAS, the
parties desire to confirm in writing the terms and conditions of the extension
and expansion, all as more fully set forth below.

 

NOW,
THEREFORE, IN CONSIDERATION OF THE PREMISES, AND SUCH OTHER GOOD AND VALUABLE
CONSIDERATION, THE RECEIPT AND SUFFICIENCY OF WHICH BEING HEREBY ACKNOWLEDGED,
THE PARTIES DO HEREBY AGREE AS FOLLOWS:

 

1.                                       First Expansion Storage Space. 
Commencing on the fourteenth (14th) day following the date that Landlord
substantially completes the First Expansion Storage Space Landlord Work (below
defined) and notifies Tenant in writing of such substantial completion (herein
the “First Expansion Storage Space Commencement Date”) and continuing for the
balance of the Term of the Lease, Landlord does hereby grant, demise and lease
unto Tenant and Tenant hereby accepts and leases from Landlord, the First
Expansion Storage Space in “as is” condition (subject to completion of the
First Expansion Storage Space Landlord Work) at the rental and upon the terms
and conditions hereinafter set forth.  Accordingly, from and after First
Expansion Storage Space

 

 

Commencement Date, the reference to “one
thousand (1,000) usable square feet” in the first sentence of Section 35
of the Lease is hereby deleted in its entirety and “one thousand two hundred
(1,200) usable square feet” is hereby inserted in lieu thereof.  All of
the other terms and conditions of Section 35 of the Lease shall remain in
full force and effect following the First Expansion Storage Space Commencement
Date, including, without limitation, the obligation to pay $15.00 per usable
square foot of storage space (i.e., $18,000.00 during the first Lease Year),
subject to 3% increases on each anniversary of the Rent Commencement Date).
 Promptly following the First Expansion Storage Space Commencement Date,
the parties shall enter into a certificate substantially similar to the form
attached to the Lease as Exhibit ”B”, confirming
the First Expansion Storage Space Commencement Date.

 

2.                                       First Expansion Storage Space Landlord Work. 
Landlord, at its sole cost and expense, agrees to perform the following
renovations to the First Expansion Storage Space (collectively, the “First
Expansion Storage Space Landlord Work”):  (i) furnish and install 4-each
building standard fire dampers (12x24), (ii) furnish and install 1-each
building standard light switch and 2-each building standard 2x4 surface mounted
light fixtures, and (iii) paint walls with one (1) coat of building
standard paint, including drywall patching.

 

3.                                       Recitals and Capitalized Terms.  The recitals herein are hereby
incorporated in and made a part of this Amendment.  Capitalized terms used
herein that are defined in the Lease and not defined herein shall have the
meaning assigned to them in the Lease.

 

4.                                       Ratification.  Except as modified
herein, the Lease shall be and remain in full force and effect.

 

[THE
REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

 

 

IN WITNESS
WHEREOF, the parties hereto have caused this instrument to be executed on the
day and year first hereinabove written.

 

	
  WITNESS:

  	
  LANDLORD:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ARLINGTON GATEWAY
  INVESTORS,

  
	
  LLC

  	
   

  	
   

  
	
   

  	
  a Virginia limited liability company

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Lee Petersen

  	
   

  	
  By:

  	
  /s/ Ralph S. Dweck

  	
   

  	
   

  
	
   

  	
   

  	
  Ralph S. Dweck, Manager

  	
   

  
	
   

  	
   

  	
   

  
	
  ATTEST:

  	
  TENANT:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  WATSON WYATT &
  COMPANY, a

  Delaware corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Michael Brendes

  	
   

  	
  By:

  	
  /s/ Carl D. Mautz

  	
   

  	
  (SEAL)

  	
   

  
	
   

  	
  Name: Carl D. Mautz

  	
   

  
	
   

  	
  Title: VP & CFO

  	
   

  
	
  (CORPORATE SEAL)Exhibit 10.98

 

 

AGREEMENT OF SALE

 

 

by and between

 

 

2975 STENDER ASSOCIATES LLC,

 

as
Seller

 

and

 

CATALYST SEMICONDUCTOR, INC.,

 

as
Buyer

 

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  1.

  	
  Sale and Purchase

  	
  1

  
	
   

  	
   

  	
   

  
	
  2.

  	
  Certain Fundamental Terms; Payment of
  Purchase Price

  	
  1

  
	
   

  	
   

  	
   

  
	
  3.

  	
  Closing

  	
  3

  
	
   

  	
   

  	
   

  
	
  4.

  	
  Condition of Title

  	
  3

  
	
   

  	
   

  	
   

  
	
  5.

  	
  Assignment of Existing Agreements.

  	
  5

  
	
   

  	
   

  	
   

  
	
  6.

  	
  Apportionments.

  	
  5

  
	
   

  	
   

  	
   

  
	
  7.

  	
  Closing Costs.

  	
  7

  
	
   

  	
   

  	
   

  
	
  8.

  	
  Municipal Improvements/Notices.

  	
  7

  
	
   

  	
   

  	
   

  
	
  9.

  	
  Seller’s Representations and Covenants.

  	
  8

  
	
   

  	
   

  	
   

  
	
  10.

  	
  Delivery of Premises Documents

  	
  11

  
	
   

  	
   

  	
   

  
	
  11.

  	
  Buyer Representations

  	
  11

  
	
   

  	
   

  	
   

  
	
  12.

  	
  Conditions Precedent to Closing

  	
  12

  
	
   

  	
   

  	
   

  
	
  13.

  	
  Deliveries at Closing

  	
  12

  
	
   

  	
   

  	
   

  
	
  14.

  	
  Default.

  	
  13

  
	
   

  	
   

  	
   

  
	
  15.

  	
  Notices; Computation of Periods

  	
  15

  
	
   

  	
   

  	
   

  
	
  16.

  	
  Fire or Other Casualty

  	
  17

  
	
   

  	
   

  	
   

  
	
  17.

  	
  Condemnation

  	
  18

  
	
   

  	
   

  	
   

  
	
  18.

  	
  Assignability

  	
  18

  
	
   

  	
   

  	
   

  
	
  19.

  	
  Inspections/Inspection Period

  	
  19

  
	
   

  	
   

  	
   

  
	
  20.

  	
  Brokers

  	
  20

  
	
   

  	
   

  	
   

  
	
  21.

  	
  CONDITION OF PREMISES

  	
  20

  
	
   

  	
   

  	
   

  
	
  22.

  	
  Survival of Provisions

  	
  25

  
	
   

  	
   

  	
   

  
	
  23.

  	
  Miscellaneous

  	
  26

  

 

i

 

	
  24.

  	
  Intentionally Omitted

  	
  27

  
	
   

  	
   

  	
   

  
	
  25.

  	
  Sophistication of the Parties

  	
  27

  
	
   

  	
   

  	
   

  
	
  26.

  	
  Limited Liability

  	
  27

  
	
   

  	
   

  	
   

  
	
  27.

  	
  Marketing

  	
  27

  
	
   

  	
   

  	
   

  
	
  28.

  	
  Enforcement

  	
  27

  

 

Exhibits

 

“A”                          Legal
Description of Premises

“B”                            List
of Personal Property

“C”                            Intentionally
Omitted

“D”                           Intentionally
Omitted

“E”                             List
of Existing Agreements To Be Assigned

“F”                             Form of
Assignment and Assumption Agreement

“G”                            Information
Materials

“H”                           Intentionally
Omitted

“I”                                Intentionally
Omitted

“J”                               Form of
Deed

“K”                           Form of
Bill of Sale

“L”                             Form of
FIRPTA Certification

 

ii

 

AGREEMENT OF SALE

 

This AGREEMENT OF SALE (this “Agreement”)
is made as of February 3, 2006 (the “Effective
Date”) by and between 2975 STENDER ASSOCIATES LLC, a Delaware
limited liability company (“Seller”),
and CATALYST SEMICONDUCTOR, INC., a Delaware corporation (“Buyer”).

 

W  I  T  N  E  S
S  E  T  H:

 

1.                                                               Sale
and Purchase.  Seller hereby agrees
to sell and convey to Buyer, and Buyer hereby agrees to purchase from Seller,
upon the terms and conditions hereinafter set forth, all of Seller’s right,
title and interest in and to the following:

 

(a)  Real
Property.  That certain lot or parcel
of real property located at 2975 Stender Way, Santa Clara, California, as more
particularly described on Exhibit ”A” hereto, and that certain
two-story building (the “Building”)
and related improvements situated on such parcel, together with all the rights
and appurtenances pertaining thereto, including any right, title and interest
of Seller (if any) in and to adjacent streets and rights-of-way and to all
minerals, oil, gas and other hydrocarbon substances thereon and thereunder, as
well as all development rights, air rights, water, water rights, riparian
rights and water stock relating thereto (collectively, the “Premises”);

 

(b)  Personal
Property.  The fixtures, furnishings,
equipment and other items of personal property, if any, owned by Seller and
located on, and used in connection with the operation of the Premises,
including, without limitation, all apparatus, equipment and appliances used in
connection with the operation or occupancy of the Premises, such as heating and
air conditioning systems and facilities used to provide any utility,
refrigeration, ventilation, garbage disposal, or other services on the
Premises, and along with all on-site parking (collectively, the “Personal Property”); and

 

(c)  Related
Materials.  To the extent
transferable without cost to Seller and to the extent in the possession or
control of Seller or Seller’s property manager, all other intangible property,
licenses, entitlements, building plans, site plans, permits, warranties and
guaranties, if any, which relate to the Property being conveyed to Seller by
Buyer on the date hereof (collectively, the “Related
Materials”, and, together with the Premises, Existing Agreements and
Personal Property, the “Property”).

 

2.                                                               Certain
Fundamental Terms; Payment of Purchase Price.  For ease of reference, certain fundamental
terms of the transaction contemplated hereby are set forth as follows:

 

	
  (a)

  	
   

  	
  Purchase Price:

  	
   

  	
  Three Million Seven Hundred Thousand and 00/100 Dollars ($3,700,000.00),
  subject to adjustments as provided hereinbelow.

  
	
  (b)

  	
   

  	
  Initial Deposit.

  	
   

  	
  One Hundred Thousand and 00/100 Dollars ($100,000.00)

  
	
  (c)

  	
   

  	
  Second Deposit.

  	
   

  	
  One Hundred Thousand and 00/100 Dollars ($100,000.00)

  
	
  (d)

  	
   

  	
  Inspection Period:

  	
   

  	
  Begins on the Effective Date and ends at 5:00 p.m., Santa Clara,
  California local time, on March 6, 2006.

  
	
  (e)

  	
   

  	
  Closing Date:

  	
   

  	
  On or before March 16, 2006 (as such date may be extended
  pursuant to the terms of this Agreement).

  

 

 

The Purchase Price shall be paid as follows:

 

(a)  Deposit.  No later than two (2) business days
after the Effective Date, Buyer shall deliver the Initial Deposit to First
American Title Company (the “Escrowee”
and, in its capacity as title insurer hereunder, the “Title Company”) in immediately available
United States Federal Funds.  Upon
receipt by Escrowee of a fully-executed copy of this Agreement and the Initial
Deposit, Escrowee shall open an escrow account for the transaction contemplated
hereby (the “Opening of Escrow”)
and promptly notify Buyer and Seller of the date of Opening of Escrow, the
escrow account number and escrow account wiring instructions.  No later than one (1) business day after
the Opening of Escrow, Escrowee shall sign this Agreement to acknowledge its
agreement to the escrow instructions set forth herein and return a signed copy
of this Agreement to Buyer and Seller. 
The Escrowee shall hold the Initial Deposit in escrow in an interest
bearing account with a federally insured state or national bank acceptable to
Seller and Buyer.  At Seller’s option,
this Agreement shall terminate if the Initial Deposit is not so deposited by
the time required (in which event neither party shall have any further rights
or obligations hereunder except for the obligations of Buyer hereunder which by
their terms survive the termination of this Agreement).  Unless Buyer timely terminates this Agreement
before the expiration of the Inspection Period in accordance with Paragraph 19(c) hereof,
then no later than one (1) business day after the last day of the
Inspection Period, Buyer shall deliver the Second Deposit to Escrowee in
immediately available United States Federal Funds.  The Initial Deposit and Second Deposit are
hereinafter collectively referred to as the “Deposit”.  All interest earned on the Deposit shall be
added to and made a part of the Deposit for all purposes hereof.  Except as otherwise expressly provided to the
contrary under Sections 4(c), 4(f), 14(b), 16(c), 17(b) or 19(c) of
this Agreement, the Deposit, together with all interest earned thereon, shall
be nonrefundable upon the expiration of the Inspection Period.  At Closing (as hereinafter defined), the
Deposit shall be credited against the Purchase Price.

 

(b)  Closing
Payment.  No later than one (1) business
day before the Closing Date, Buyer shall deliver to Escrowee the balance of the
Purchase Price (adjusted as hereinafter provided), for payment to Seller at
Closing, which balance shall be delivered by wire transfer of immediately
available federal funds, to the account specified by, and in accordance with
wiring instructions to be provided by, the Escrowee.  Notwithstanding the foregoing, Buyer may
deliver the balance of the Purchase Price to Escrowee on the Closing Date so
long as Seller receives its net sale proceeds no later than the Closing Date.

 

 

(c)  Reduction
in Purchase Price at Closing. 
Effective upon the Closing, the Purchase Price shall be reduced by Three
Thousand Five Hundred and 00/100 Dollars ($3,500.00).  Buyer acknowledges and agrees that such
reduction is being made in recognition and consideration of the following:  (i) prior to the Effective Date, Seller
engaged ARS Asbestos Removal Service to perform certain asbestos remediation
work in respect of the removal and disposal of approximately 400 square feet of
floor tile and 1,200 square feet of black mastic on the first floor computer
room underneath certain raised computer floor panels; (ii) such
remediation has not been completed and it will cost approximately $3,500 to
complete the remediation; (iii) notwithstanding anything in this Agreement
that may be construed to the contrary, Seller shall have no responsibility for
completing such remediation; and (iv) from and after the Closing, Buyer
shall be solely responsible for completing such remediation work.

 

2

 

3.                                                               Closing.  The closing of the transaction contemplated
hereby (the “Closing”) shall be
deemed to have occurred once the following conditions have been satisfied:  (i) the Deed (as defined below) has been
recorded in the Official Records of Santa Clara County, California, and (ii) Seller
has received the net sale proceeds payable to Seller pursuant to this
Agreement.  The Closing shall be held and
completed through Escrowee on or before the Closing Date.  The parties acknowledge and agree that time
is of the essence in this Agreement and the transactions contemplated hereby.

 

4.                                                               Condition
of Title.

 

(a)  Title
to Premises.  Fee simple title to the
Premises shall be conveyed by Seller to Buyer at the completion of Closing by
the Deed (as hereinafter defined), subject only to the Permitted Encumbrances
(as hereinafter defined).  Seller’s
interest in the Personal Property shall be conveyed by Seller to Buyer at the
completion of Closing by the Bill of Sale, as hereinafter defined.  The term “Permitted
Encumbrances” shall mean (i) taxes and assessments which are
not yet delinquent, (ii) all matters that would be disclosed by a physical
inspection or accurate survey of the Property, (iii) all covenants,
conditions, easements, restrictions, liens, encumbrances and other matters of
title that have been approved or deemed approved by Buyer as provided in Section 4(c) or
4(f) below, (iv) all laws, regulations or ordinances (including, but
not limited to, zoning, building and environmental laws, regulations and
ordinances) applicable to the Property, and (v) the standard printed
exceptions, stipulations and exclusions from coverage contained in the standard
coverage CLTA form of Owner’s Policy of Title Insurance.

 

(b)  Survey.  Buyer acknowledges that it has received a
copy of the most current survey of the Premises in Seller’s possession (the “Survey”). 
At no cost or liability to Seller, Seller shall, promptly after the
Effective Date, request the surveyor of the Survey to certify the Survey to
Buyer.  Promptly after the Effective
Date, Buyer may order, at its sole cost and expense, an update to the Survey,
to be certified to Seller, Buyer and the Title Company, and to be prepared in
accordance with survey standards selected by Buyer (the “Updated Survey”).  Nothing contained in this Agreement,
including the provisions of Paragraph 1(a) hereof, shall constitute any
warranty, representation or agreement by Seller as to the location of separate
lots in, or acreage of, the Premises.

 

(c)  Title
Matters.  Buyer acknowledges that it
has, with respect to the Premises, received a preliminary title report dated as
of January 25, 2006 and issued by the Title Company under Order Number NCS-214398-SC
(“Title Report”), together with
copies of all documents referred to therein as exceptions to title (“Title Documents”).  Buyer shall be deemed to have waived its
right to object to any encumbrance or other title exception or matter reflected
in the Title Report or Title Documents unless Buyer shall have given Seller
written notice of its objections (a “Title
Notice”) within ten (10) business days after the Effective
Date; provided, however, Buyer reserves the right to object to any new matters
first disclosed on any update to the Title Report as provided in Section 4(f) below.  Buyer shall be deemed to have waived its
right to object to any encumbrance or other title exception or matter reflected
in the Survey unless Buyer shall have given Seller a Title Notice detailing its
objections thereto within ten (10) business days after the Effective Date;
provided, however, Buyer reserves the right to object to any matters reflected
on the Updated Survey that were not reflected on the Survey as provided in Section 4(f) below.  Upon Buyer’s failure to timely object
pursuant to the foregoing provisions of this paragraph, any encumbrance or
other title exception or matter reflected on the Title Report or in the Title
Documents or Survey shall thereafter be deemed a “Permitted Encumbrance”.

 

3

 

Seller shall have the right, at
its sole option, within five (5) business days of receipt of Buyer’s Title
Notice (the “Seller Title Response Period”),
of delivering written notice to Buyer (the “Seller
Title Notice”), that Seller will either (i) remove any
encumbrance or other title exception or matter to which Buyer has objected, (ii) provide
the Title Company such assurances as the Title Company requires to insure Buyer
against any loss arising from such encumbrance or other title exception or
matter, or (iii) do neither (i) nor (ii).  Failure by Seller to deliver the Seller Title
Notice shall be deemed an election under sub-item (iii) above in this
subparagraph (c).  If Seller does not
elect to effect the cure or provide the assurances contemplated by sub-item (i) or
(ii) of this subparagraph (c), Buyer may elect, as its sole right and
remedy by reason thereof, either (x) to take such title to the Premises as
Seller can convey, with no abatement of the Purchase Price, or (y) upon written
demand delivered by Buyer to Seller and Escrowee (the “Buyer Election Notice”) no later than the
earlier to occur of the expiration of the Inspection Period or five (5) business
days after Buyer’s receipt of the Seller Title Notice, to terminate this
Agreement and receive the return of the Deposit.  Buyer’s failure to timely deliver the Buyer
Election Notice in accordance with the foregoing provisions of this
subparagraph (c) shall be deemed an election by Buyer under the foregoing
sub-item (x) of this subparagraph (c). 
Notwithstanding the foregoing provisions of this Paragraph 4, Buyer
agrees to accept title to the Property subject to judgments against Seller
and/or monetary liens if the Title Company insures Buyer against any loss by
reason of such judgments and/or liens, in each case other than judgments or
liens for more than $150,000.00, individually or in the aggregate.  Notwithstanding anything in this Agreement
that may be construed to the contrary and except as otherwise set forth in any
Seller Title Notice, Seller shall have no obligation to cure any alleged
defect, objection or survey matter raised in any Title Notice other than any
consensual mortgage or deed of trust executed by Seller; provided, however,
that Seller further agrees to cure, at the Closing, any other monetary lien or
liens which are not caused by Buyer provided such liens do not exceed an amount
equal to Thirty Five Thousand and 00/100 Dollars ($35,000.00) in the aggregate
(such other monetary liens are referred to herein as the “Mandatory Cure Liens”).  In any event, Seller shall have the right, at
its sole option, to extend the Closing Date by an additional sixty (60) days in
order to cure any alleged defect, objection or survey matter raised in any
Title Notice or to otherwise satisfy its obligations under this paragraph.  Upon any return of the Deposit to Buyer
pursuant to this paragraph, this Agreement shall be deemed null and void,
neither party shall have any further rights or obligations hereunder (except
for the obligations of Buyer hereunder which by their terms survive the
termination of this Agreement).

 

(d)  Reliance
on Title Policy.  Notwithstanding
anything contained in this Agreement to the contrary, with respect to all
matters affecting title to the Premises and any liens or other encumbrances
affecting the Premises, Buyer acknowledges and agrees it is relying upon its
title insurance policy.  If Buyer has a
meritorious claim under its title insurance policy and the subject matter of that
claim also constitutes a breach of any warranty made by Seller in this
Agreement or the Deed, Buyer agrees that it will look first to its title
insurance policy for recovery on such claim, and Buyer shall not assert any
claim against Seller for a breach of a representation, warranty or covenant
with respect to such claim unless and until Buyer has pursued its remedies
against the Title Company to final judgment and has not been made whole;
provided, however, that Buyer shall have the right to file an action against
Seller prior to such final judgment if and to the extent necessary to prevent
the expiration of the Survival Period (as defined in Paragraph 22(c) below)
applicable to the warranty that has been breached. The provisions of this
subparagraph (d) shall survive Closing and delivery of the Deed.

 

(e)  Intentionally
Omitted.

 

4

 

(f)  Updated
Title Report and Updated Survey.  At
any time prior to Closing, Buyer may request the Title Company to issue updates
or supplements to the Title Report.  If
any new encumbrance or new title exception is first reflected on any Updated
Survey or on any update or supplement to the Title Report (each a “Title Update”), Buyer shall be deemed to
have waived its right to object to such new encumbrance or title exception
unless Buyer shall have given a Title Notice to Seller with respect thereto on
or before the earlier to occur of (x) the expiration of five (5) business
days after the receipt by Buyer of such Title Update, and (y) two (2) business
days prior to the Closing. 
Notwithstanding the foregoing or anything in this Agreement that may be
construed to the contrary, unless Buyer terminates this Agreement pursuant to
Paragraph 19(c) hereof, Buyer shall be deemed to have approved all matters
which were disclosed on the Updated Survey or which would have been disclosed
on the Updated Survey had Buyer obtained an accurate Updated Survey prior to
the expiration of the Inspection Period.

 

5.                                                               Assignment
of Existing Agreements.

 

(a)  Intentionally
Omitted.

 

(b)  Existing
Agreements.  At Closing, pursuant to
the General Assignment and Assumption Agreement, Seller shall assign to Buyer,
without any representation or warranty whatsoever (except as otherwise
expressly set forth in Paragraph 9 of this Agreement or in the instrument of
assignment) to the extent assignable, and to the extent Buyer has elected to
have such agreements assigned to it, all of Seller’s right, title and interest
in, to and under the existing agreements listed on Exhibit ”E”
hereto (together with any other agreements entered into in accordance with this
subparagraph (b) hereinafter collectively called the “Existing Agreements”) and the Related
Materials. Following the Effective Date, Seller shall, no later than five (5) business
days after the Effective Date, provide Buyer with copies of any and all
proposed contracts, contract renewals, contract modifications and contract
amendments which Seller proposes to execute with respect to any Existing
Agreement (but Buyer shall have no approval rights regarding the same until
after the Inspection Period expires). 
During the period from the expiration of the Inspection Period until the
Closing (or earlier termination of this Agreement), Seller shall not have the
right to enter into new service or maintenance agreements (except for
agreements that shall be terminable, without penalty or premium, on not more
than thirty (30) days’ notice) or modify any existing service or maintenance
agreements in any material respect without Buyer’s approval which shall not be
unreasonably withheld or delayed and shall be deemed given if Buyer does not
disapprove within ten (10) business days of a request for approval.  The termination or expiration of any of the
Existing Agreements prior to Closing shall not excuse Buyer from its obligation
to complete Closing and to pay the full Purchase Price.

 

6.                                                               Apportionments.

 

(a)  Generally.

 

(i)                                     Taxes
and Fees.  Real estate taxes for the
real estate tax year in which the Closing occurs and annual municipal or
special district assessments (on the basis of the actual fiscal tax years for
which such taxes are assessed), water and sewer rentals, license, permit and
inspection fees and rentals, and sales tax shall be apportioned as of the
Closing Date between Buyer and Seller.

 

5

 

(ii)                                  Intentionally
Omitted.

 

(iii)                               Intentionally
Omitted.

 

(iv)                              Intentionally
Omitted.

 

(v)                                 Other
Apportionments.  Amounts payable in
connection with the operation and maintenance expenses of the Premises and
other recurring costs shall be apportioned as of the Closing Date.

 

(vi)                              Taxes
and Assessments.  Real estate taxes
shall be apportioned on the Closing Date. 
If the tax bill for the real estate tax year in which the Closing occurs
has not been issued on or before the date of the Closing, the apportionment of
taxes shall be computed based upon the most recent tax bill available.  If, on the date of Closing, bills for the
real estate taxes imposed upon the Premises for the real estate tax year in
which Closing occurs have been issued but shall not have been paid, such taxes
shall be paid at the time of Closing. 
Seller expressly reserves the right to, but does not have an obligation
to, commence and conduct, at its sole cost and expense, any tax certiorari or
reduction proceedings relating to the Premises in respect of the real estate
tax year in which the Closing occurs and all prior real estate tax years.  Seller agrees to consult with Buyer and Buyer
agrees to reasonably cooperate with Seller in all such proceedings.

 

(vii)                           Contract
Arrearages.  Any portion of any
payments received by Buyer after the date of Closing under any of the Existing
Agreements that relates to periods prior to Closing shall be promptly paid by
Buyer to Seller.

 

(viii)                        Intentionally
Omitted.

 

(ix)                                Preliminary
Closing Adjustment.  With the
assistance of Escrowee, Seller and Buyer shall jointly prepare a preliminary
Closing Statement on the basis of the Existing Agreements, real estate taxes
and other sources of income and expenses for the Property, and shall deliver
such preliminary Closing Statement to each other and the Title Company on or
prior to the Closing Date; provided, however, that Seller and Buyer shall work
together in good faith to prepare a working draft of such preliminary Closing
Statement for mutual review and discussion prior to the Closing Date.  All apportionments and prorations provided
for in this Paragraph 6 to be made as of the Closing Date shall be made, on a
per diem basis, as of midnight of the day immediately preceding the Closing
Date.  The preliminary Closing Statement
and the apportionments and/or prorations reflected therein shall be based upon
actual figures to the extent available. 
If any of the apportionments and/or prorations cannot be calculated
accurately based on actual figures on the Closing Date, then (other than with
respect to determination of real estate taxes that shall be computed as set
forth in Clause (vi) above) they shall be calculated based on Seller’s and
Buyer’s good faith estimates thereof and reflected on a Closing Statement to be
executed by Buyer and Seller at Closing, subject to reconciliation as
hereinafter provided.

 

(x)                                   Post-Closing
Reconciliation.  If there is an error
on the Closing Statement delivered at Closing or, if after the actual figures
are available as to any items that were estimated on the Closing Statement
delivered at Closing (including, without limitation, real estate taxes that
were computed in accordance with Clause (vi) above), it is determined that
any actual proration or apportionment varies from the amount thereof reflected
on the Closing

 

6

 

Statement, the proration or
apportionment shall be adjusted based on the actual figures as soon as feasible
but not later than twelve (12) months after the Closing Date.  Either party owing the other party a sum of
money based on such subsequent proration(s) shall promptly pay said sum to the
other party.  Seller and Buyer agree to
cooperate in good faith to determine any amounts due to Seller or to Buyer
under this Section 6(a) and to reconcile such amounts in accordance
with this subparagraph (x) no later than twelve (12) months after the Closing
Date.

 

(b)  Intentionally
Omitted.

 

(c)  Utility
Readings.  Seller shall use
reasonable efforts to obtain readings of the water and electric meters on the
Premises to a date no sooner than ten (10) days prior to the Closing
Date.  At or prior to Closing, Seller
shall pay all charges based upon such meter readings.  Closing shall be completed even if some or
all such readings could not be obtained (it being agreed that upon the
obtaining thereof after Closing, Seller shall promptly pay the charges incurred
with respect to that portion of the billing cycle that falls prior to Closing
as reasonably determined by Seller and Buyer based upon such post-Closing
readings.

 

(d)  Survival.  The provisions of this Paragraph 6 shall
survive Closing and delivery of the Deed for a period of twelve (12) months.

 

7.                                                               Closing
Costs.

 

(a)  Buyer’s
Costs.  Buyer shall pay (i) the
costs of its counsel, architect, engineers and other professionals and
consultants, (ii) any recording and filing fees, including without
limitation, the filing fees relating to recording the Deed, (iii) all
Title Company charges in excess of the Title Company’s premium for a standard
coverage CLTA Owner’s Title Policy (and the cost of all endorsements to the
Title Policy), and (iv) one-half (1/2) of any escrow fees and other
charges charged by Escrowee.

 

(b)  Seller’s
Costs.  Seller shall pay (i) the
Title Company’s premium for a standard coverage CLTA Owner’s Title Policy; (ii) documentary
transfer taxes or fees imposed or charged by the County of Santa Clara,
California in connection with the transfer of the Property to Buyer, and (iii) one-half
(1/2) of any escrow fees and other charges charged by Escrowee.

 

All other
closing and escrow costs shall be apportioned between Buyer and Seller in
accordance with customary escrow closing practice in Santa Clara County,
California for substantially comparable transactions.

 

8.                                                               Municipal
Improvements/Notices.

 

(a)  Assessments.  If and to the extent there exists any
improvement assessment liens, Mello Roos bond payments or other similar
assessments which encumber or affect the Premises, Buyer hereby expressly
agrees and assumes the obligation to pay any and all future installments of
such bonds or assessment liens affecting the Premises which accrue from and
after the Closing (including any fines, interest or penalties that accrue or
are imposed thereon in connection with the non-payment of any unpaid
installments that become due on or after the Closing).  Seller shall have no obligation to pay the
principal amount of any of such assessments or bonds.

 

7

 

(b)  Subdivision
and Development Bonds. If and to the extent there exists in favor of
governmental bodies or agencies or other third parties improvement bonds (“Bonds”) which insure the completion of
off-site and on-site public improvements relating to the Premises, the payment
of all labor and materials relating to such improvements or the performance of
the parties constructing such improvements, Buyer shall, if permitted by such
governmental body or agency or other third party, provide replacement bonds for
the Bonds and Buyer shall, from and after the Closing, be obligated to perform
as required by the Bonds and/or any replacement bonds and to perform any and
all work required by the beneficiary(ies) thereunder, and shall indemnify and
defend Seller for and against, and hold Seller harmless from, any claims which
may be made by the beneficiary(ies) or the bonding company for recovery of the
Bonds and/or any replacement bonds or the completion of such work.

 

(c)  Survival.  The provisions of this Paragraph 8 shall
survive Closing and delivery of the Deed.

 

9.                                                               Seller’s
Representations and Covenants.

 

(a)  Seller
hereby represents to Buyer that:

 

(i)                                     Organization.  Seller is a limited liability company, duly
organized and validly existing and in good standing under the laws of the State
of Delaware and has all requisite power and authority to carry on its business
as now conducted.

 

(ii)                                  Authorization.  Seller has the requisite power and authority
to enter into and perform this Agreement and the transactions contemplated
hereby, and Seller has duly authorized the execution of this Agreement and will
have, on or prior to the Closing Date, duly authorized the execution of the
documents which are required to be delivered hereunder by Seller in connection
with the Closing.  This Agreement and all
documents executed by Seller which are to be delivered to Buyer at the Closing
will, at the time of Closing, be legal, valid and binding obligations of Seller
enforceable against Seller in accordance with their respective terms.

 

(iii)                               No
Violation or Conflict.  The
execution, delivery and performance of the Agreement will not violate any of
Seller’s organizational or governing documents or any contract, agreement,
commitment, order, judgment or decree to which Seller is a party or by which
Buyer is bound.

 

(iv)                              Condemnation.  To Seller’s knowledge, there are, as of the
date of this Agreement, no existing or pending condemnation proceedings or
deeds in lieu of condemnation affecting the Premises, nor to Seller’s
knowledge, has any such proceedings been threatened in writing with respect to
the Premises, as of the date of this Agreement. 
Seller shall promptly notify Buyer of any such proceedings of which
Seller becomes aware.

 

(v)                                 Litigation.  There is, as of the date of this Agreement
and as of the Closing Date, no pending litigation that have been served against
Seller with respect to the Premises (nor to Seller’s knowledge, has such
litigation been, as of the date of this Agreement, threatened in writing
against Seller) that would, in each case, materially adversely affect Seller’s
ability to perform its obligations under this Agreement.

 

(vi)                              Foreign
Person.  Seller is not a “foreign
person” within the meaning of Section 1445(f)(3) of the Internal
Revenue Code of 1986, as amended.

 

8

 

(vii)                           No
Lease.  Seller has not entered into
any lease for any portion of the Premises.

 

(viii)                        Bankruptcy.  Seller has not filed or, to Seller’s knowledge,
been the subject of any filing of, a petition under the Federal Bankruptcy law
or any federal or state insolvency laws or laws for composition of indebtedness
or for the reorganization of debtors.

 

(ix)                                Other
Competing Rights.  Except for this
Agreement, Seller has not granted to any party any option, or any right of
first refusal or first offer for the sale of the Property or any portion
thereof to such party.

 

(x)                                   Knowledge.  Mr. David Andris is the person currently
affiliated with the Seller that is likely to hold the most knowledge in respect
of those representations of Seller hereunder that are qualified to Seller’s
knowledge or by words of similar import.

 

(xi)                                Environmental
Reports.  Seller has delivered to
Buyer all environmental assessment reports in Seller’s possession which pertain
to the Premises.

 

(b)  If
Seller notifies Buyer after the date of this Agreement of any material and
adverse modification or inaccuracy of any of Seller’s representations and
warranties in Section 9, Buyer’s sole remedy shall be the right (to be
exercised within ten (10) days of Buyer’s receipt of such notice) to
terminate this Agreement and receive a refund of the Deposit; provided,
however, that if Seller’s notification to Buyer was made between the expiration
of the Inspection Period and the Closing Date, and if the modification or
inaccuracy was the result of a willful act by Seller, then Buyer shall, in
addition, be entitled to reimbursement for out-of-pocket due diligence costs
and attorneys’ fees reasonably incurred by Buyer in connection with this
Agreement, up to a maximum reimbursement of Thirty Five Thousand and 00/100
Dollars ($35,000.00).  If Buyer does not
elect to terminate this Agreement within such ten (10) day period, Buyer
shall be deemed to have waived any objection Buyer may have to such
modification or inaccuracy and shall proceed to Closing.  Buyer shall be entitled to rely on Seller’s
representations and warranties during the survival period set forth in Section 22(c);
provided, however, that Buyer shall not be entitled to rely on any such
representations and warranties to the extent Buyer’s investigation or
inspections prior to Closing discloses inaccuracies in the same.  The provisions of this paragraph is not
intended to, and shall not, adversely affect the provisions of Section 22(c)(ii) hereof.

 

(c)  All
references in this Paragraph 9 or elsewhere in this Agreement and/or in any
other document or instrument executed by Seller in connection with or pursuant
to this Agreement, to “Seller’s knowledge” or “to the knowledge of Seller” and
words of similar import shall refer solely to facts within the actual knowledge
(without independent investigation or inquiry) of Mr. David Andris and
shall not be construed to refer to the knowledge of any other employee,
officer, director, shareholder or agent of Seller or of any other person or
entity, and shall in no event be deemed to include imputed or constructive
knowledge.  The reference herein to Mr. David
Andris is used solely as a basis to define the scope and limit of Seller’s
knowledge hereunder, is not intended nor shall it be construed to cause such
person to have any duty to investigate or inquire, and shall not cause such
person to incur any liability for anything in connection with the Property, this
Agreement, or the transactions contemplated hereunder, including, without
limitation, for any breach of Seller’s representations or warranties set forth
above.

 

9

 

(d)  Notwithstanding
anything in this Agreement that may be construed to the contrary, all
representations and warranties of Seller set forth in this Agreement shall be
deemed automatically qualified and modified by any facts disclosed in any of
the documents, reports, information or materials that are delivered by Seller
or its agents to Buyer on or before the date that is ten (10) days after
the Effective Date, or that are otherwise known to Buyer or discovered by Buyer
prior to the expiration of the Inspection Period.  The representations made by Seller in this
Agreement, as so qualified and modified, shall be deemed re-made by Seller as
of the Closing Date.  Without limiting
the first sentence of this paragraph, Buyer shall be deemed to have knowledge
of a fact or circumstance if the underlying information or facts relating to
applicable representations and warranties were disclosed in any of the Existing
Agreements, Title Report, Title Documents, Survey, this Agreement or in any
other document delivered or otherwise made available to Buyer by Seller.

 

(e)  Subject
to the other terms of this paragraph, Seller hereby consents to any reasonable
efforts by Buyer prior to the Closing Date to obtain the permits required by
the City of Santa Clara in respect of improvements that Buyer intends to
construct after the Closing (collectively, the “Permits”).  In no
event, however, shall Buyer begin the construction or installation of any
improvements on the Property prior to the Closing.  At no cost or liability to Seller, Seller shall,
prior to Closing, reasonably cooperate and do all acts as may be reasonably
required or requested by Buyer in connection with Buyer’s efforts to obtain the
Permits, including, without limitation, (i) promptly executing all
applications and other required documents, (ii) providing all information
reasonably required by Buyer in connection with the Permits, and (iii) delivering
necessary submittals to the City of Santa Clara.  Buyer shall keep Seller promptly and
regularly informed of the status of Buyer’s efforts to obtain the Permits.  Notwithstanding the foregoing, in no event
shall any submissions or information disclosed or submitted by Seller pursuant
to the foregoing provisions of this paragraph enlarge Seller’s liability under
this Agreement in any respect (including, without limitation, with respect to
any representations or warranties of Seller that are expressly set forth in
this Agreement), nor shall such submissions or information constitute
additional representations or warranties of Seller to Buyer or otherwise, nor shall
the issuance of such Permits constitute a condition to Closing hereunder.  Buyer agrees that it shall keep the Premises
free from any liens arising in connection with the Permits and shall cause any
such lien to be released of record by payment or posting of a proper bond
within fifteen (15) days following the imposition thereof.  Seller agrees to assign all of Seller’s
right, title and interest in and to the Permits, if any, to Buyer effective
upon the Closing pursuant to the General Assignment and Assumption Agreement,
in each case without recourse and without representation or warranty of any
kind whatsoever.  As a covenant that
shall survive the Closing or any termination of this Agreement, Buyer shall
indemnify, defend and save Seller and, as the case may be, its partners,
trustees, shareholders, directors, members, officers, employees, agents and
other representatives harmless of and from any and all claims, liabilities,
damages, liens, costs and expenses (including, without limitation, attorneys’ fees
and costs) which Seller and/or any of its partners, trustees, shareholders,
directors, members, officers, employees, agents and other representatives may
incur, suffer or be subject by reason of or in any manner relating to Buyer’s
efforts to obtain the Permits or to any efforts by Seller to cooperate in Buyer’s
efforts to obtain the Permits.

 

10

 

10.                                                         Delivery
of Premises Documents.

 

(a) 
Deliveries. 
Buyer acknowledges that, prior to the date hereof, Seller has, to the
extent in Seller’s possession, furnished or made available to Buyer the items
listed on Exhibit ”G” hereto.

 

(b) 
NO WARRANTY.  NOTWITHSTANDING THE
PRIOR PROVISIONS OF THIS PARAGRAPH 10 TO THE CONTRARY, BUYER ACKNOWLEDGES AND
UNDERSTANDS THAT SOME OF THE MATERIALS DELIVERED BY SELLER (OR HAVE BEEN MADE
AVAILABLE FOR BUYER’S INSPECTION) HAVE BEEN PREPARED BY PARTIES OTHER THAN
SELLER OR SELLER’S CURRENT PROPERTY MANAGER. 
IN ANY EVENT, SELLER MAKES NO REPRESENTATION OR WARRANTY WHATSOEVER, EXPRESS
OR IMPLIED, AS TO THE COMPLETENESS, CONTENT OR ACCURACY OF ANY SUCH DELIVERED
(OR MADE AVAILABLE) MATERIALS EXCEPT AS EXPRESSLY SET FORTH IN SECTION 9
HEREOF.

 

11.                                                         Buyer
Representations.  Buyer hereby
represents to Seller, as of the date hereof and as of the date of Closing, as
follows:

 

(a)  Organization.  Buyer is a corporation, duly organized and
validly existing under the laws of the State of Delaware and has all requisite
power and authority to carry on its business as now conducted.

 

(b)  Authorization.  Buyer has the requisite power and authority
to enter into and perform this Agreement and the transactions contemplated
hereby and Buyer has duly authorized the execution of this Agreement and
obtained all necessary consents (whether from a governmental authority or other
third party) in order to execute and deliver this Agreement and to perform
hereunder and otherwise consummate the transactions contemplated hereby.

 

(c)  No
Violation or Conflict.  The
execution, delivery and performance of the Agreement will not violate any of
Buyer’s organizational or governing documents or any contract, agreement,
commitment, order, judgment or decree to which Buyer is a party or by which
Buyer is bound.

 

(d)  ERISA.  Buyer is not acquiring the Premises or the
Personal Property with the assets of an employee benefit plan as defined in Section 3(3) of
the Employee Retirement Income Security Act of 1974 (“ERISA”).

 

(e)  Litigation.  There is, as of the date of this Agreement
and as of the Closing Date, no pending litigation that have been served against
Buyer, nor to Buyer’s knowledge, has such litigation been, as of the date of
this Agreement, threatened in writing against Buyer, that would, in each case,
materially adversely affect Buyer’s ability to perform its obligations under
this Agreement.

 

(f)  Bankruptcy.  Buyer has not made a general assignment for
the benefit of creditors, filed any voluntary petition in bankruptcy or
suffered the filing of any involuntary petition by its creditors, suffered the
appointment of a receiver to take possession of all or substantially all of its
assets, suffered the attachment or other judicial seizure of all or
substantially all of its assets, or admitted in writing its inability to pay
its debts as they come due.

 

11

 

12.                                                         Conditions
Precedent to Closing.  (a)  Buyer
shall not be obligated to close under this Agreement unless each of the
following conditions have been waived by Buyer or are satisfied by the Closing
Date:

 

(i)                                     Title
Policy.  As of the Closing Date, the
Title Company is prepared to issue, upon payment of the title premium therefor,
a CLTA standard coverage Owner’s Policy of Title Insurance with a liability
limit in the amount of the Purchase Price and which insures that Buyer, as of
the Closing, holds fee title to the Property subject only to Permitted
Encumbrances (the “Title Policy”);

 

(ii)                                  Representations.  The representations and warranties made by
Seller in this Agreement are true and correct in all material respects as of
the Closing Date; and

 

(iii)                               No
Default.  Seller shall have performed
all of the material obligations to be performed by Seller under this Agreement
at or prior to Closing Date.

 

(b)                                 Seller
shall not be obligated to close under this Agreement unless each of the
following conditions have been waived by Seller or have been satisfied by the
Closing Date:

 

(i)                                     Accuracy
of Representations.  The
representations and warranties made by Buyer in this Agreement are true and
correct in all material respects as of the Closing Date; and

 

(ii)                                  No
Default.  Buyer shall have performed
all of the material obligations to be performed by Buyer under this Agreement
at or prior to the Closing Date, including without limitation timely delivery
of each portion of the Deposit and timely delivery of the balance of the
Purchase Price to Escrowee.

 

13.                                                         Deliveries
at Closing.  (a)  Seller’s
Deliveries.  On the Closing Date,
Seller shall deliver to the Escrowee the following:

 

(i)                                     Deed.  A grant deed with respect to the Real
Property, in substantially the form attached hereto as Exhibit ”J”
(the “Deed”).

 

(ii)                                  Bill
of Sale.  A bill of sale with respect
to the Personal Property, if any, in substantially the form attached hereto as Exhibit ”K”
(the “Bill of Sale”).

 

(iii)                               General
Assignment and Assumption Agreement. 
A general assignment and assumption agreement with respect to the
Existing Agreements in substantially the form of Exhibit ”F” hereto
(the “General Assignment and Assumption Agreement”).

 

(iv)                              Authority
Documents.  If required by the Title
Company, evidence of required limited liability company authority and an
incumbency certificate to evidence the capacity of the signatory for Seller.

 

(v)                                 FIRPTA
Certification and Title Affidavit. 
An affidavit in the form attached hereto as Exhibit ”L” with
respect to compliance with the Foreign Investment in Real Property Tax Act
(Internal Revenue Code Sec. 1445, as amended, and the regulations issued
thereunder).

 

12

 

(vi)                              Intentionally
Omitted.

 

(vii)                           Keys.  All keys of Seller for the Property.

 

(viii)                        Books
and Records.  Copies (to the extent
in Seller’s possession or control or the possession or control of Seller’s
property manager) of all books and records reasonably required for the orderly
transition of operation of the Premises.

 

(ix)                                Original
Documents.  To the extent in Seller’s
possession or control or in the possession or control of Seller’s property
manager) the originals or, if unavailable, copies of the Existing Agreements
and (to the extent in Seller’s possession or the possession of Seller’s
property manager) copies of as-built plans and specifications for the
improvements at the Premises, permits, licenses and other agreements and
approvals relating to the maintenance and operation of the Property.

 

(x)                                   Closing
Statement.  A preliminary Closing
Statement, mutually acceptable to Buyer and Seller, prepared in accordance with
the terms of this Agreement.

 

(xi)                                Owner’s
Affidavit.  If requested by the Title
Company, an Owner’s Affidavit in customary form reasonably acceptable to the
Seller.

 

Location at
the Premises on the date of Closing of any of the materials referred to in
clauses (vii), (viii), and (ix) of this subparagraph (a) shall be
deemed delivery to Buyer.

 

(b)                                 Buyer’s
Deliveries.  On the Closing Date,
Buyer will deliver to Seller or, at Seller’s direction, to the Title Company,
the following:

 

(i)                                     General
Assignment and Assumption Agreement. 
A signed counterpart of the General Assignment and Assumption Agreement.

 

(ii)                                  Bill
of Sale.  A signed counterpart of the
Bill of Sale.

 

(iii)                               Authority
Documents.  An authorizing resolution
and an incumbency certificate, and such other documents as may be reasonably
necessary to evidence the authority and capacity of Buyer and the authority of
the signatory for Buyer.

 

(iv)                              Closing
Statement.  A preliminary Closing
Statement, mutually acceptable to Buyer and Seller, prepared in accordance with
this Agreement.

 

(v)                                 Other
Documents.  Any other documents (a) which
Buyer is obligated to deliver to Seller pursuant to this Agreement, (b) that
may be requested by the Title Company in order to issue the Title Policy and/or
(c) that are necessary in order to effectuate the transfer of the Premises
as contemplated by this Agreement (x) in accordance with the terms of this
Agreement or (y) pursuant to any applicable law, rule or regulation.

 

14.                                                         Default.

 

(a)                                  BUYER DEFAULT.                                         IF
BUYER BREACHES OR FAILS TO PERFORM ITS OBLIGATION TO PURCHASE THE PROPERTY
UNDER THIS

 

13

 

AGREEMENT
AFTER THE EXPIRATION OF THE INSPECTION PERIOD AND THIS AGREEMENT IS TERMINATED
(OR THE CLOSING FAILS TO OCCUR) AS A RESULT OF SUCH FAILURE (AND NOT AS A
RESULT OF SELLER’S BREACH), THEN THE DEPOSIT SHALL BE IMMEDIATELY DELIVERED BY
ESCROWEE TO SELLER AS LIQUIDATED DAMAGES AND NOT AS A PENALTY.  THE RETENTION OF THE DEPOSIT SHALL BE SELLER’S
SOLE REMEDY IN THE EVENT OF BUYER’S DEFAULT AT OR PRIOR TO THE CLOSING DATE,
AND SELLER IN SUCH EVENT HEREBY WAIVES ANY RIGHT TO RECOVER THE BALANCE OF THE
PURCHASE PRICE.  SELLER AND BUYER AGREE
THAT THE ACTUAL DAMAGES TO SELLER IN THE EVENT OF SUCH BREACH ARE IMPRACTICAL
TO ASCERTAIN AS OF THE DATE OF THIS AGREEMENT AND THE AMOUNT OF THE DEPOSIT IS
A REASONABLE ESTIMATE THEREOF.  UPON
PAYMENT OF THE DEPOSIT TO SELLER AS LIQUIDATED DAMAGES, THIS AGREEMENT SHALL
(EXCEPT AS HEREIN OTHERWISE EXPRESSLY PROVIDED) BE AND BECOME NULL AND
VOID.  NOTHING CONTAINED IN THIS
PARAGRAPH 14(a) SHALL BE DEEMED TO LIMIT SELLER’S RIGHTS AGAINST BUYER BY
REASON OF THE INDEMNITY OBLIGATIONS OF BUYER TO SELLER SET FORTH IN THIS
AGREEMENT (ALL OF WHICH SHALL SURVIVE THE TERMINATION OF THIS AGREEMENT), NOR
LIMIT SELLER’S RECOVERY AGAINST BUYER FOR ATTORNEYS’ FEES AND COSTS INCURRED BY
SELLER IN CONNECTION WITH SELLER’S EXERCISE OF ITS RIGHTS UNDER THIS
AGREEMENT.  THE PAYMENT OF THE DEPOSIT AS
LIQUIDATED DAMAGES IS NOT INTENDED AS A FORFEITURE OR PENALTY WITHIN THE
MEANING OF CALIFORNIA CIVIL CODE SECTIONS 3275 OR 3369, BUT IS INTENDED TO
CONSTITUTE LIQUIDATED DAMAGES TO SELLER PURSUANT TO CALIFORNIA CIVIL CODE
SECTIONS 1671, 1676 AND 1677.  SELLER
HEREBY WAIVES THE PROVISIONS OF CALIFORNIA CIVIL CODE SECTION 3389.

 

SELLER
AND BUYER ACKNOWLEDGE THAT THEY HAVE READ AND UNDERSTAND THE PROVISIONS OF THIS
SECTION, AND BY THEIR INITIALS IMMEDIATELY BELOW AGREE TO BE BOUND BY ITS
TERMS.

 

	
   

  	
   

  	
  /s/

  	
  TG

  	
   

  	
   

  	
  /s/ CH

  	
   

  
	
   

  	
   

  	
   

  	
  BUYER

  	
   

  	
   

  	
  SELLER

  	
   

  

 

(b)                                 Seller
Default.  The term “Permitted Event”
shall mean the occurrence of all of the following on the Closing Date:  (1) Buyer shall be ready, willing and
able to complete Closing in accordance with this Agreement, and (2) Seller,
notwithstanding the foregoing, shall have refused to complete Closing in
accordance with this Agreement and such refusal constituted a default on the
part of Seller under this Agreement. 
Except upon the occurrence of a Permitted Event, Buyer agrees that it
shall not (and hereby waives any right to) commence or maintain any action
against Seller for specific performance under this Agreement or for a
declaratory judgment as to Buyer’s rights under this Agreement.  Buyer further waives any right to file or
assert any lis pendens against any portion of the Premises except in connection
with an action for specific performance commenced and maintained by Buyer in
accordance with this paragraph.  If the
only reason the sale of the Premises is not consummated is because of the
occurrence of the Permitted Event, then as its sole and exclusive remedy, Buyer
may either (i) terminate this Agreement in its entirety by delivery of notice
of termination to Seller, whereupon the Deposit

 

14

 

shall be immediately returned
to Buyer (in which case Buyer shall also be entitled to reimbursement for
out-of-pocket due diligence costs and attorneys’ fees reasonably incurred by
Buyer in connection with this Agreement, up to a maximum reimbursement of
Thirty Five Thousand and 00/100 Dollars ($35,000.00)), or (ii) continue
this Agreement pending Buyer’s action for specific performance hereunder provided
appropriate proceedings are commenced by Buyer no later than thirty (30) days
after the Closing Date originally scheduled hereunder and prosecuted with
diligence and continuity. 
Notwithstanding the foregoing or anything set forth herein to the contrary,
(x) the non-satisfaction of the closing condition set forth in Sections 12(a)(i) shall
not be deemed to be a default by Seller hereunder except to the extent caused
by Seller’s failure to perform its obligation to cure Mandatory Cure Liens or
any consensual mortgage or deed of trust which have been executed by Seller,
and (y) in the event of a failure of any such closing conditions, Buyer’s sole
and exclusive remedy shall be to terminate this Agreement in its entirety by
delivery of notice of termination to Seller, whereupon the Deposit shall be
immediately returned to Buyer.

 

15.                                                         Notices;
Computation of Periods.  (a)  Notices.  All notices given by either party to the
other shall be in writing and shall be sent either (i) by United States
Postal Service registered or certified mail, postage prepaid, return receipt
requested, or (ii) by prepaid nationally recognized overnight courier
service for next business day delivery, addressed to the other party at the
following addresses listed below or (iii) via telecopier or facsimile
transmission to the facsimile numbers listed below; provided, however,
that if such communication is given via telecopier or facsimile transmission,
an original counterpart of such communication shall concurrently be sent in the
manner specified in subparagraph (ii) above.  Addresses and facsimile numbers of the
parties are as follows: 

 

As to Buyer:

 

Catalyst Semiconductor, Inc.

1250 Borregas Avenue

Sunnyvale, California 94089

Telecopy: 
(408) 542-1410

Attention: 
Mr. Tom Gay

 

With copies at
the same time to:

 

Wilson Sonsini Goodrich & Rosati

650 Page Mill Road

Palo Alto, California 94304-1050

Telecopy: 
(650) 493-6811

Attention: 
Marc Gottschalk, Esq.

 

As to Seller:

 

2975 Stender Associates LLC

825 Third Avenue, 36th Floor

New York, New York 10022

Telecopy: 
(212) 224-5699

 

15

 

Attention:       Mr. Christopher Hughes

Mr. Scott Schonfeld

 

With copies at
the same time to:

 

The Praedium Group, LLC

825 Third Avenue, 36th Floor

New York, New York 10022

Telecopy: 
(212) 224-5699

Attention: 
Laura A. Schaffer, Esq.

 

And to:

 

South Bay Development

1690 Dell Avenue

Campbell, California 95008

Attention: 
Mr. David Andris

Fax: 
(408) 379-3229

 

And to:

 

Manatt, Phelps & Phillips, LLP

11355 West Olympic Boulevard

Los Angeles, California 90064

Telecopy: 
(310) 914-5758

Attention: 
Valentin G. Aguilar II, Esq.

 

As to Title
Company or Escrowee:

 

First American Title Company

1737 North First Street

San Jose, California  95112-4505

Attention: 
Ms. Liz Zankich

Fax No.: 
(408) 579-8319

 

or to such other address as the respective
parties may hereafter designate by notice in writing in the manner specified
above.  Any notice may be given on behalf
of any party by its counsel.  Notices
given in the manner aforesaid shall be deemed sufficiently served or given for
all purposes under this Agreement upon actual receipt (including receipt of a
facsimile copy, but only if an original of such facsimile is properly sent by
overnight courier as provided above) or refusal by the addressee.

 

(b)  Computation
of Periods.  If the final day of any
period of time in any provision of this Agreement falls upon a Saturday, Sunday
or a holiday observed by federally insured banks in the State of New York
and/or the State in which the Premises is located or by the United States
Postal Service (any of the foregoing, a “Holiday”),
then, the time of such period shall be extended to the next day which is not a
Saturday, Sunday or Holiday.  Unless
otherwise specified, in computing any period of time described in this
Agreement, the day of the act or event after which the designated period of
time begins to run is not to be included and the

 

16

 

last day of the period is so
computed is to be included, unless such last day is a Saturday, Sunday or
Holiday in which event the period shall run until the end of the next day which
is neither a Saturday, Sunday or Holiday. 
As used in this Agreement, the phrase “business
day” means any day that is not a Saturday, Sunday or Holiday.

 

16.                                                         Fire or
Other Casualty.

 

(a)  Casualty
Insurance.  Seller agrees to maintain
in effect until the Closing Date the fire and other casualty insurance policies
now in effect on the Premises (or substitute policies in equal or greater
amounts).

 

(b)  Casualty
Damage.  If any portion of the
Premises shall be damaged or destroyed by fire or other casualty between the
date of this Agreement and the Closing Date, Seller shall give written notice
thereof to Buyer.  Subject to the provisions
of subparagraph (c) below, the obligation of Buyer to complete Closing
under this Agreement shall in no way be voided or impaired by reason thereof,
and Buyer shall be required to accept the Premises and the Personal Property in
their then damaged condition without abatement of the Purchase Price or any
claim against Seller.  In such case, the
proceeds of all fire and extended coverage insurance policies attributable to
such damage or destruction at the Premises or the Personal Property received by
Seller prior to the Closing Date (and not used by Seller for the protection or
repairs to the Premises and the Personal Property) shall be disbursed by Seller
to Buyer at Closing; and all unpaid claims under such insurance policies
attributable to such damage or destruction at the Premises and Personal
Property shall be assigned by Seller to Buyer on the date of Closing.  In any event, if such proceeds relate to a
fire or casualty that occurs between the expiration of the Inspection Period
and the Closing Date (and provided that Buyer is not in default hereunder and
this Agreement has not yet been terminated), then Seller shall not use such
proceeds without the prior consent of Buyer (which consent shall not be
unreasonably withheld or delayed).  There
shall be no reduction in the Purchase Price by reason of any such unpaid claim
except that at the Closing, Buyer shall receive a credit equal to any
deductibles under such insurance policies to the extent such deductibles have
not yet been paid or otherwise incurred by Seller.

 

(c)                                  Right
of Termination.  Notwithstanding any
of the preceding provisions of this Paragraph 16, if “substantial damage” (as
defined below) shall occur to the buildings on the Premises by fire or other
casualty prior to the Closing Date, Buyer shall have the right to terminate
this Agreement by written notice to the Seller. 
If Buyer desires to terminate this Agreement pursuant to this
subparagraph (c), Buyer must give a written notice of termination to Seller
within fifteen (15) business days after Seller’s notice to Buyer of the
occurrence of the casualty.  Upon such
termination of this Agreement, the Deposit shall be returned to Buyer and
neither party shall have any further rights or obligations hereunder (except the
indemnity obligations of Buyer to Seller set forth in this Agreement which
shall survive the termination of this Agreement and except for any default by
Buyer which may have occurred prior thereto). 
The term “substantial damage” shall mean such damage that would cost, in
the judgment of an independent third-party real estate professional retained by
Seller, at least Three Hundred Fifty Thousand and 00/100 Dollars ($350,000.00)
to repair.  If Buyer does not timely give
notice of a termination, Buyer’s obligations hereunder shall remain in effect
notwithstanding such casualty and Buyer shall remain obligated to consummate
the purchase in accordance with the terms of this Agreement, including, without
limitation, subparagraph (b) above.

 

17

 

17.                                                         Condemnation.

 

(a)                                  Immaterial
Taking.  If any part of the Premises
shall be taken by exercise of the power of eminent domain after the date of
this Agreement that does not materially interfere with the use of the Premises
for the purposes for which it is currently used, this Agreement shall continue
in full force and effect and there shall be no abatement of the Purchase
Price.  Seller shall be relieved,
however, of its duty to convey title to the portion of the parcel so taken, but
Seller shall, on the Closing Date, assign to Buyer all rights and claims to any
awards arising therefrom as well as any money theretofore received by Seller on
account thereof, net of any expenses actually incurred by Seller, including
attorney’s fees of collecting the same. 
Seller shall promptly furnish Buyer with a copy of the declaration of
taking property after Seller’s receipt thereof.

 

(b)                                 Material
Taking.  If any taking of a portion
of the Premises materially interferes with the use of the Premises for the purposes
for which it is currently used or materially reduce the square footage of the
Premises (including the parking areas), Buyer may terminate this Agreement, by
written notice to Seller within fifteen (15) business days of Seller’s notice
to Buyer of such a taking.  Upon the
giving of such termination notice, the Deposit shall be returned to Buyer and
this Agreement shall become null and void, except for the indemnity obligations
of Buyer to Seller set forth in this Agreement which will survive termination
of this Agreement.  If Buyer does not
timely give notice of termination, Buyer’s obligations hereunder shall remain
in effect notwithstanding such condemnation and Buyer shall remain obligated to
consummate the purchase in accordance with the terms of this Agreement.

 

18.                                                         Assignability.

 

(a)  Assignments
Prohibited.   Buyer may not assign or
suffer an assignment of this Agreement and/or its rights under this Agreement,
without the prior written consent of Seller, which consent Seller may deny in
its sole and absolute discretion.  Any
such assignment made without such prior written consent shall be deemed
voidable and breach of this Agreement entitling Seller to terminate this
Agreement.  Notwithstanding the
foregoing, Buyer shall have the right, upon reasonable advance notice to
Seller, to assign this Agreement or its rights hereunder to any entity that
controls, is controlled by or is under common control, directly or indirectly
with Buyer or Buyer’s manager, in each case without the Seller’s consent; provided,
however, that no assignment by Buyer shall be effective, however, unless and
until Buyer shall have furnished to Seller both a fully executed copy of the
assignment and assumption agreement, in form reasonably satisfactory to Seller,
by the assignee to assume, perform and be responsible, jointly and severally
with the Buyer named herein, for the performance of all of the obligations of
Buyer under this Agreement and to pay all additional transfer or documentary
taxes imposed as a result of such assignment, and which contains a
representation by the assignee that all of the representations and warranties
made by Buyer in this Agreement are true and correct with respect to the
assignee as of the date of the assumption agreement, together with additional
authority, due formation, due execution and delivery representations as
reasonably determined by Seller.  In no
event shall Buyer be relieved of any liability hereunder by reason of an
assignment of its rights hereunder and the express terms of any assignment by
Buyer shall reaffirm Buyer’s obligations hereunder; provided, however, that if
the Closing occurs in accordance with the provisions of this Agreement, then so
long as Buyer’s assignee has fully assumed all past, present and future
obligations of Buyer hereunder, Buyer shall be released from further liability
hereunder effective upon the Closing.

 

18

 

(b)  Prohibited
Assignments.  Notwithstanding the
foregoing provisions of subparagraph (a), Buyer shall have no right, under any
circumstances, to assign this Agreement (i) to any entity owned or
controlled by an employee benefit plan if Seller’s sale of the Premises to such
entity would, in the reasonable judgment of Seller or Seller’s counsel, either
create, otherwise cause, or raise a material question as to whether it would
create or otherwise cause, a “prohibited transaction” under ERISA or (ii) to
any person, or to any entity which has as a direct or indirect owner or partial
owner a person with a criminal record, or currently under a criminal
indictment.

 

(c)  Successors
and Assigns.  Subject to the
foregoing limitations, this Agreement shall extend to, and shall bind, the
respective heirs, executors, personal representatives, successors and assigns of
Seller and Buyer.

 

19.                                                         Inspections/Inspection
Period.

 

(a)  Right
to Inspect.  Buyer, and Buyer’s
agents and representatives, shall have the right, from time to time, prior to
the expiration of the Inspection Period or earlier termination of this Agreement,
during normal business hours, to enter upon the Premises for the purpose of
conducting visual inspections of the Premises, examining the structure of the
Building, testing of machinery and equipment, taking of measurements, making of
surveys and generally for the reasonable ascertainment of matters relating to
the Premises.  In connection with Buyer’s
inspection, Buyer shall (i) give Seller prior written notice of the time
and place of such entry not less than 48 hours prior to the proposed date and
time of entry; (ii) use reasonably diligent efforts not to interfere with
the operations of the Premises or any tenant thereof; (iii) restore any
damage to the Premises or any adjacent property caused by such actions
(provided that Buyer shall not be responsible for any damage directly arising
from the mere discovery of a pre-existing condition); (iv) indemnify,
defend and save Seller and, as the case may be, its partners, trustees,
shareholders, directors, members, officers, employees, agents and other representatives
harmless of and from any and all claims and/or liabilities which Seller and its
partners, trustees, shareholders, directors, members, officers, employees,
agents and other representatives may suffer or be subject by reason of or in
any manner relating to such entry and such activities, including, without
limitation, any claims by tenants and/or invitees of the Premises; (v) Seller
and Seller’s representatives shall have the right to accompany Buyer or Buyer’s
agent in the event Buyer enters into any portion of the Premises (including any
tenant’s premises) or communicates with or interviews any tenant; (vi) prior
to entry onto the Premises, furnish Seller with a certificate of general
liability and property damage insurance maintained by Buyer with single
occurrence coverage of at least $1,000,000 and naming Seller and its property
manager as additional insureds; and (vi) not conduct any “Phase II”
environmental site assessments or invasive, destructive, drilling or coring
procedures or tests without the prior consent of Seller (which consent Seller
may withhold in its sole and absolute discretion), and not conduct any other
environmental investigations or testing without the prior consent of Seller
(which consent shall not be unreasonably withheld).  Seller shall give Buyer, and its counsel,
accountants, and representatives reasonable access to the books, records,
survey plans, documents and information (other than internal memoranda,
appraisals, and documents and/or information covered by the attorney-client
privilege or work-product privilege, or other documents deemed in good faith by
Seller to be confidential) for review and copying in the possession of Seller
or Seller’s property manager with respect to ownership, construction and
operation of the Premises.

 

19

 

(b)  No
Liens Permitted.  Nothing contained
in this Agreement shall be deemed or construed in any way as constituting the
consent or request of Seller, express or implied by inference or otherwise, to
any party for the performance of any labor or the furnishing of any materials
to the Premises or any part thereof, nor as giving Buyer any right, power or
authority to contract for or permit the rendering of any services or the
furnishing of any materials that would give rise to the filing of any liens
against the Premises or any part thereof. 
Buyer agrees to promptly cause the removal of, and indemnify, defend and
hold Seller harmless with respect to, any mechanic’s or similar lien filed
against the Premises or any part thereof by any party performing any labor or
services at the Premises or supplying any materials to the Premises at Buyer’s
request.

 

(c)  Buyer’s
Right of Termination. If Buyer determines, in its sole and absolute
discretion, that it is not satisfied with the Premises and all or any matters relating
thereto as a result of Buyer’s inspection (including, without limitation, any
title matters), Buyer shall have the right to terminate this Agreement, for any
or no reason whatsoever, by giving Seller written notice (“Termination Notice”) at any time prior to
the expiration of the Inspection Period. 
Upon giving the Termination Notice, this Agreement shall immediately
terminate (except for the indemnity and other obligations of Buyer to Seller
under this Agreement which are provided hereunder to survive the termination of
this Agreement) and without further notice or instruction, the Deposit shall be
returned by Escrowee to Buyer, as Buyer’s sole and exclusive remedy under this
Agreement, at law or in equity.  In any
event and notwithstanding anything in this Agreement that may be construed to
the contrary, Buyer’s failure to deliver the Termination Notice prior to the
expiration of the Inspection Period shall be deemed Buyer’s waiver of its
termination right under this Paragraph 19 (in which event, Buyer shall be
deemed to have consented to and approved of every fact, item and condition
relating to the Property including, without limitation, all encumbrances and
other title exceptions contained in the Title Report and all matters set forth
in or illustrated by the Survey Plan).

 

(d)  Survival.  The provisions of this Paragraph 19 shall
survive termination of this Agreement and/or the Closing and delivery of the
Deed.

 

20.                                                         Brokers.  Seller and Buyer each represents and warrants
to the other that it has dealt with no broker or other intermediary in
connection with this transaction other than Wayne Mascia Associates, who
represents the Buyer (the “Buyer’s Broker”).  Contingent upon the occurrence of the
Closing, Seller agrees to pay a commission to Buyer’s Broker in an amount not
to exceed the lesser of (i) three percent (3%) of the Purchase Price
payable hereunder at Closing, or (ii) One Hundred Eleven Thousand and
00/100 Dollars ($111,000.00) if, as and when the Closing occurs only.  Notwithstanding the foregoing, if any broker
or other intermediary other than the Buyer’s Broker claims to be entitled to a
fee or commission by reason of having dealt with Seller or Buyer in connection
with this transaction, or having introduced the Premises to Buyer for sale, or
having been the inducing cause to the sale, the party with whom such broker
claims to have dealt shall indemnify, defend and save harmless the other party
of and from any claim for commission or compensation by such broker or other
intermediary.  This Paragraph 20 shall
survive the termination of this Agreement and/or the Closing and delivery of
the Deed.

 

21.                                                         CONDITION
OF PREMISES.  (a)  NO
WARRANTIES.  THE ENTIRE AGREEMENT
BETWEEN THE SELLER AND BUYER WITH RESPECT TO THE PROPERTY AND THE SALE THEREOF
IS EXPRESSLY SET FORTH IN THIS AGREEMENT. 
THE PARTIES ARE NOT BOUND BY ANY AGREEMENTS, UNDERSTANDINGS, PROVISIONS,

 

20

 

CONDITIONS,
REPRESENTATIONS OR WARRANTIES (WHETHER WRITTEN OR ORAL AND WHETHER MADE BY
SELLER OR ANY AGENT, EMPLOYEE, ATTORNEY, MEMBER, OFFICER OR PRINCIPAL OF SELLER
OR ANY OTHER PARTY) OTHER THAN AS ARE EXPRESSLY SET FORTH AND STIPULATED IN
THIS AGREEMENT.  WITHOUT IN ANY MANNER
LIMITING THE GENERALITY OF THE FOREGOING (BUT SUBJECT TO ANY REPRESENTATIONS
AND WARRANTIES OF SELLER EXPRESSLY SET FORTH IN THIS AGREEMENT), BUYER
ACKNOWLEDGES THAT IT AND ITS REPRESENTATIVES WILL, BY THE CLOSING, HAVE FULLY
INSPECTED THE PROPERTY AND EXISTING AGREEMENTS, OR WILL BE PROVIDED WITH AN
ADEQUATE OPPORTUNITY TO DO SO, ARE OR WILL BE FULLY FAMILIAR WITH THE FINANCIAL
AND PHYSICAL (INCLUDING, WITHOUT LIMITATION, ENVIRONMENTAL) CONDITION THEREOF,
AND THAT THE PROPERTY AND EXISTING AGREEMENTS HAVE BEEN PURCHASED BY BUYER IN
AN “AS IS” AND “WHERE IS” CONDITION AND WITH ALL EXISTING DEFECTS (PATENT AND
LATENT) AS A RESULT OF SUCH INSPECTIONS AND INVESTIGATIONS AND NOT IN RELIANCE
ON ANY AGREEMENT, UNDERSTANDING, CONDITION, WARRANTY (INCLUDING, WITHOUT
LIMITATION, WARRANTIES OF HABITABILITY, MERCHANTABILITY OR FITNESS FOR A
PARTICULAR PURPOSE) OR REPRESENTATION MADE BY SELLER OR ANY AGENT, EMPLOYEE,
MEMBER, OFFICER OR PRINCIPAL OF SELLER OR ANY OTHER PARTY (EXCEPT AS OTHERWISE
EXPRESSLY ELSEWHERE PROVIDED IN THIS AGREEMENT) AS TO THE FINANCIAL OR PHYSICAL
(INCLUDING, WITHOUT LIMITATION, ENVIRONMENTAL) CONDITION OF THE PROPERTY OR THE
AREAS SURROUNDING THE PREMISES, OR AS TO ANY OTHER MATTER WHATSOEVER,
INCLUDING, WITHOUT LIMITATION, AS TO ANY PERMITTED USE THEREOF, THE ZONING
CLASSIFICATION THEREOF OR COMPLIANCE THEREOF WITH FEDERAL, STATE OR LOCAL LAWS,
AS TO THE INCOME OR EXPENSE IN CONNECTION THEREWITH, OR AS TO ANY OTHER MATTER
IN CONNECTION THEREWITH.  BUYER
ACKNOWLEDGES THAT, EXCEPT AS OTHERWISE EXPRESSLY ELSEWHERE PROVIDED IN THIS
AGREEMENT, NEITHER SELLER, NOR ANY AGENT, MEMBER, OFFICER, EMPLOYEE OR
PRINCIPAL OF SELLER NOR ANY OTHER PARTY ACTING ON BEHALF OF SELLER HAS MADE OR
SHALL BE DEEMED TO HAVE MADE ANY SUCH AGREEMENT, CONDITION, REPRESENTATION OR
WARRANTY EITHER EXPRESSED OR IMPLIED. 
THIS PARAGRAPH SHALL SURVIVE CLOSING AND DELIVERY OF THE DEED, AND SHALL
BE DEEMED INCORPORATED BY REFERENCE AND MADE A PART OF ALL DOCUMENTS
DELIVERED BY SELLER TO BUYER IN CONNECTION WITH THE SALE OF THE PROPERTY.

 

(b)  CHANGE
OF CONDITIONS.  SUBJECT TO SELLER’S OBLIGATIONS
UNDER SUBPARAGRAPH (d) BELOW, BUYER SHALL ACCEPT THE PREMISES AND THE
PERSONAL PROPERTY AT THE TIME OF CLOSING IN THE SAME CONDITION AS THE SAME ARE
AS OF THE DATE OF THIS AGREEMENT, AS SUCH CONDITION SHALL HAVE CHANGED BY
REASON OF NORMAL WEAR AND TEAR AND NATURAL DETERIORATION AND, SUBJECT TO
PARAGRAPHS 16 AND 17 HEREOF, CONDEMNATION OR DAMAGE BY FIRE OR OTHER
CASUALTY.  WITHOUT LIMITING THE
GENERALITY OF THE FOREGOING, BUYER SPECIFICALLY ACKNOWLEDGES THAT THE FACT THAT
ANY PORTION OF THE PREMISES OR THE PERSONAL PROPERTY OR ANY EQUIPMENT OR
MACHINERY THEREIN OR ANY PART THEREOF MAY NOT BE IN WORKING ORDER OR
CONDITION AT THE

 

21

 

CLOSING DATE BY REASON OF
NORMAL WEAR AND TEAR AND NATURAL DETERIORATION OR DAMAGE BY FIRE OR OTHER
CASUALTY, OR BY REASON OF ITS PRESENT CONDITION, SHALL NOT RELIEVE BUYER OF ITS
OBLIGATION TO COMPLETE CLOSING UNDER THIS AGREEMENT AND PAY THE FULL PURCHASE
PRICE.  EXCEPT AS PROVIDED IN
SUBPARAGRAPH (d) BELOW, SELLER HAS NO OBLIGATION TO MAKE ANY REPAIRS OR
REPLACEMENTS REQUIRED BY REASON OF WEAR AND TEAR AND NATURAL DETERIORATION OR
CONDEMNATION OR FIRE OR OTHER CASUALTY, BUT MAY, AT ITS OPTION AND ITS COST
(INCLUDING THE USE OF INSURANCE PROCEEDS AS HEREIN PROVIDED), MAKE ANY SUCH
REPAIRS AND REPLACEMENTS PRIOR TO THE CLOSING DATE.

 

(c)  Condition
of Delivery.  Seller has no
obligation to deliver the Premises in a “broom clean” condition, and at Closing
Seller may leave in the Premises all items of personal property and equipment,
partitions and debris as are now presently therein and as would accumulate in
the normal course of operating and maintaining the Premises and the Personal
Property.

 

(d)  Seller
Repairs.  Between the Opening of
Escrow and the Closing Date, Seller shall perform all customary ordinary
repairs to the Premises and the Personal Property as Seller has customarily
previously performed to maintain them in substantially the same condition as
they are as of the Opening of Escrow, as said condition shall be changed by
wear and tear, damage by fire or other casualty.  Notwithstanding the foregoing, Seller shall
have no obligation to make any structural or extraordinary repairs or capital
improvements to the Premises or the Personal Property between the Effective
Date and Closing.

 

(e)  RELEASE. 
BUYER, FOR ITSELF AND ITS AGENTS, AFFILIATES, SUCCESSORS AND ASSIGNS,
HEREBY RELEASES, ACQUITS AND FOREVER DISCHARGES SELLER AND (AS THE CASE MAY BE)
SELLER’S OFFICERS, DIRECTORS, MEMBERS, SHAREHOLDERS, TRUSTEES, PARTNERS,
EMPLOYEES, MANAGERS, AGENTS AND AFFILIATES (COLLECTIVELY REFERRED TO HEREIN AS “SELLER’S PARTIES”) FROM ANY AND ALL
RIGHTS, CLAIMS, DEMANDS, CAUSES OF ACTIONS, LOSSES, DAMAGES, LIABILITIES, COSTS
AND EXPENSES (INCLUDING ATTORNEYS’ FEES AND DISBURSEMENTS WHETHER THE SUIT IS
INSTITUTED OR NOT) WHETHER KNOWN OR UNKNOWN, LIQUIDATED OR CONTINGENT
(HEREINAFTER COLLECTIVELY CALLED THE “CLAIMS”),
WHICH BUYER HAS OR MAY HAVE IN THE FUTURE, ARISING FROM OR RELATING TO (i) ANY
DEFECTS (PATENT OR LATENT), ERRORS OR OMISSIONS IN THE DESIGN OR CONSTRUCTION
OF THE PREMISES WHETHER THE SAME ARE THE RESULT OF NEGLIGENCE OR OTHERWISE, OR (ii) ANY
OTHER CONDITIONS, INCLUDING, WITHOUT LIMITATION, ENVIRONMENTAL AND OTHER
PHYSICAL CONDITIONS, AFFECTING THE PREMISES WHETHER THE SAME ARE A RESULT OF
NEGLIGENCE OR OTHERWISE, INCLUDING SPECIFICALLY, BUT WITHOUT LIMITATION, ANY
CLAIM FOR INDEMNIFICATION OR CONTRIBUTION ARISING UNDER THE COMPREHENSIVE
ENVIRONMENTAL RESPONSE, COMPENSATION AND LIABILITY ACT (42 U.S.C. SECTION 9601,
ET SEQ.) OR ANY OTHER FEDERAL, STATE OR LOCAL STATUTE, RULE OR ORDINANCE
RELATING TO LIABILITY OF PROPERTY OWNERS FOR ENVIRONMENTAL

 

22

 

MATTERS,
WHETHER ARISING BASED ON EVENTS THAT OCCURRED BEFORE, DURING, OR AFTER SELLER’S
PERIOD OF OWNERSHIP OF THE PROPERTY AND WHETHER BASED ON THEORIES OF
INDEMNIFICATION, CONTRIBUTION OR OTHERWISE. 
THE RELEASE SET FORTH IN THIS SECTION SPECIFICALLY INCLUDES,
WITHOUT LIMITATION, ANY CLAIMS UNDER ANY ENVIRONMENTAL LAWS OF THE UNITED
STATES, THE STATE IN WHICH THE PREMISES IS LOCATED OR ANY POLITICAL SUBDIVISION
THEREOF OR UNDER THE AMERICANS WITH DISABILITIES ACT OF 1990, AS ANY OF THOSE
LAWS MAY BE AMENDED FROM TIME TO TIME AND ANY REGULATIONS, ORDERS, RULES
OF PROCEDURES OR GUIDELINES PROMULGATED IN CONNECTION WITH SUCH LAWS,
REGARDLESS OF WHETHER THEY ARE IN EXISTENCE ON THE DATE OF THIS AGREEMENT.  AS PART OF THE PROVISIONS OF THIS SECTION 21(e),
BUT NOT AS A LIMITATION THEREON, BUYER HEREBY AGREES, REPRESENTS AND WARRANTS THAT
THE MATTERS RELEASED HEREIN ARE NOT LIMITED TO MATTERS WHICH ARE KNOWN OR
DISCLOSED, AND BUYER HEREBY WAIVES ANY AND ALL RIGHTS AND BENEFITS WHICH IT NOW
HAS, OR IN THE FUTURE MAY HAVE CONFERRED UPON IT, BY VIRTUE OF THE
PROVISIONS OF FEDERAL, STATE OR LOCAL LAW, RULES OR REGULATIONS, INCLUDING
WITHOUT LIMITATION, SECTION 1542 OF THE CIVIL CODE OF THE STATE OF
CALIFORNIA, WHICH PROVIDES AS FOLLOWS:

 

A
GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR
SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE,
WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER
SETTLEMENT WITH THE DEBTOR.

 

IN THIS CONNECTION AND TO THE
EXTENT PERMITTED BY LAW, BUYER HEREBY AGREES, REPRESENTS AND WARRANTS THAT BUYER
REALIZES AND ACKNOWLEDGES THAT FACTUAL MATTERS NOW UNKNOWN TO IT MAY HAVE
GIVEN OR MAY HEREAFTER GIVE RISE TO CAUSES OF ACTION, CLAIMS, DEMANDS,
DEBTS, CONTROVERSIES, DAMAGES, COSTS, LOSSES AND EXPENSES WHICH ARE PRESENTLY
UNKNOWN, UNANTICIPATED AND UNSUSPECTED, AND BUYER FURTHER AGREES, REPRESENTS
AND WARRANTS THAT THE WAIVERS AND RELEASES HEREIN HAVE BEEN NEGOTIATED AND
AGREED UPON IN LIGHT OF THAT REALIZATION AND THAT BUYER NEVERTHELESS HEREBY
INTENDS TO RELEASE, DISCHARGE AND ACQUIT EACH OF SELLER’S PARTIES FROM ANY SUCH
UNKNOWN CAUSES OF ACTION, CLAIMS, DEMANDS, DEBTS, CONTROVERSIES, DAMAGES,
COSTS, LOSSES AND EXPENSES WHICH MIGHT IN ANY WAY BE INCLUDED IN THE WAIVERS
AND MATTERS RELEASED AS SET FORTH IN THIS SECTION 21(e).  THE FOREGOING RELEASE, HOWEVER, DOES NOT
APPLY TO THE COVENANTS AND REPRESENTATIONS EXPRESSLY MADE BY SELLER IN THIS
AGREEMENT TO THE EXTENT SUCH COVENANTS AND REPRESENTATIONS SURVIVE THE
CLOSING.  BUYER ACKNOWLEDGES THAT BUYER
HAS BEEN REPRESENTED

 

23

 

BY INDEPENDENT LEGAL COUNSEL OF
BUYER’S SELECTION AND BUYER IS GRANTING THIS RELEASE OF ITS OWN VOLITION AND
AFTER CONSULTATION WITH BUYER’S COUNSEL. 
BUYER HEREBY SPECIFICALLY ACKNOWLEDGES THAT BUYER HAS CAREFULLY REVIEWED
THIS SUBSECTION AND DISCUSSED ITS IMPORT WITH LEGAL COUNSEL AND THAT THE
PROVISIONS OF THIS SUBSECTION ARE A MATERIAL PART OF THIS AGREEMENT.

 

	
   

  	
  /s/ Thomas E. Gay III

  	
   

  
	
   

  	
  Buyer

  	
   

  

 

(f)  Seller
Reports.  Buyer acknowledges that,
except to the extent expressly set forth in Paragraph 9 of this Agreement,
Seller makes no warranties or representations regarding the adequacy, accuracy
or completeness of Seller’s environmental and/or engineering reports or other
materials relating to the Premises made available to Buyer (collectively, the “Reports”) or other documents relating to
the Premises, and Buyer shall have no claim against Seller based upon the
Reports or such other documents relating to the Premises.  Buyer further acknowledges that Buyer has had
full opportunity to perform such physical inspections, environmental and
engineering investigations and appraisals as Buyer deems appropriate prior to
Closing, and Buyer obtained or shall obtain its own physical inspections,
environmental and engineering reports and appraisals of the Premises.

 

(g)  Waiver
of Natural Hazards Disclosure Requirement. 
Buyer acknowledges that the Property may be located in a very high fire
hazard severity zone, within the meaning of California Government Code Sections
51179 and 51183.5; a wildland area that may contain substantial forest fire
risks, within the meaning of California Public Resources Code Section 4136;
an earthquake fault zone, within the meaning of California Public Resources
Code Section 2621.9; a special flood hazard area, within the meaning of
California Government Code Section 8589.3; an area of potential flooding,
within the meaning of California Government Code Section 8589.4; and/or a
seismic hazard zone, within the meaning of California Public Resources Code Section 2694.  Buyer further acknowledges that: (i) it
is a sophisticated and experienced purchaser of real property; (ii) Buyer
and Seller are parties of equal bargaining strength; (iii) this Agreement
is not a contract of adhesion but has been expressly negotiated between the
parties; and (iv) this Agreement concerns a transaction that is private in
nature.  In view of the foregoing, Buyer
hereby knowingly, voluntarily, intentionally and irrevocably waives its right
to disclosure of natural hazards found in the Natural Hazard Disclosure Act,
California Government Code Sections 8589.3, 8589.4, and 51183.5, and California
Public Resources Code Sections 2621.9, 2694, and 4136, and any successor
statutes or laws.

 

(h)  Effect
of Disclaimers.  Buyer acknowledges
and agrees that the Purchase Price has been negotiated to take into account
that the Property is being sold subject to the provisions of this Paragraph 21
and that Seller would have charged a higher purchase price if the provisions in
this Paragraph 21 were not agreed upon by Buyer.

 

(i)  Survival.  The provisions of this Paragraph 21 shall
survive Closing and delivery of the Deed.

 

24

 

22.                                                         Survival
of Provisions.

 

(a) 
Acceptance by Buyer of the Deed at Closing shall constitute an acknowledgment
by Buyer of full performance by Seller of all of Seller’s obligations under
this Agreement, except for the obligations of Seller which are expressly
provided in this Agreement to survive Closing.

 

(b)  Any
of Buyer’s obligations under this Agreement that are expressly provided in this
Agreement to survive Closing or that shall possibly imply performance or
observance after the Closing Date shall survive Closing and delivery of the
Deed, notwithstanding any presumption to the contrary.

 

(c)  (i) 
Notwithstanding any provision to the contrary set forth in this Agreement, the
representations of Seller expressly set forth in Paragraph 9 of this Agreement
shall survive Closing under this Agreement for a period of five (5) months
after the Closing (the “Survival Period”);
provided, however, that such representations are, and are intended to be, given
as of the date(s) set forth in Paragraph 9 hereof.

 

(ii)                                  If,
on its own (and not as a result of any notice from Seller delivered pursuant to
Section 9(b)), Buyer actually determines prior to the Closing Date that
any of the representations of Seller in subparagraphs 9(a) were not true
when given, Buyer’s sole right and remedy shall be to terminate this Agreement
(and receive a refund of the Deposit) by giving to Seller written notice of
such termination within ten (10) days after Buyer actually learns of the
breach of such representation; provided, however, that if Buyer first acquired
knowledge of such breach between the expiration of the Inspection Period and
the Closing Date, and if the breach was the result of a willful act by Seller,
then Buyer shall, in addition and contingent upon termination of the Agreement,
be entitled to reimbursement for out-of-pocket due diligence costs and
attorneys’ fees reasonably incurred by Buyer in connection with this Agreement,
up to a maximum reimbursement of Thirty Five Thousand and 00/100 Dollars
($35,000.00).  If Buyer fails to give
such written termination notice to Seller within such time period, Buyer shall
be deemed to have waived any right or remedy (including, without limitation,
any right under this Agreement to terminate this Agreement) by reason of such
breach.

 

(iii)                               After
the Closing, Seller shall have no liability to Buyer by reason of a breach or
default of any of Seller’s representations, unless Buyer shall have given to
Seller written notice (“Warranty Notice”)
of such breach or default within the Survival Period, and shall have given to
Seller an opportunity to cure any such breach or default within a reasonable
period of time after Seller receives Buyer’s Warranty Notice.  No claim for any such breach of any
representation or warranty of Seller shall be actionable or payable unless the
valid claims for all such breaches collectively aggregate more than $35,000.00,
in which event the full amount of such claims shall be actionable.  In no event, however, shall the aggregate
liability of Seller to Buyer by reason of a breach or default hereunder exceed
$250,000.00.  In any event, Seller’s
liability shall be limited to actual damages and shall not include
consequential damages.  Any litigation
with respect to any representation must be commenced within the Survival
Period, and if not commenced within such time period, Buyer shall be deemed to
have waived its claims for such breach or default.  In any event, any proceeding or litigation
based upon a claim of fraud, misrepresentation or similar theory shall be
commenced by Buyer within the Survival Period and, if appropriate proceedings
are not commenced within such time period, Buyer shall be deemed to have waived
any such claim.

 

25

 

(d)  Survival.  The provisions of this Paragraph 22 shall
survive Closing and delivery of the Deed.

 

23.                                                         Miscellaneous.

 

(a)  Captions or Headings; Interpretation.  The captions or headings of the Paragraphs
and subparagraphs of this Agreement are for convenience only, and shall not
control or affect the meaning or construction of any of the terms or provisions
of this Agreement.  Wherever in this
Agreement the singular number is used, the same shall include the plural and
vice versa and the masculine gender shall include the feminine gender and vice
versa as the context shall require.

 

(b)  Amendments
and Waivers.  No change, alteration,
amendment, modification or waiver of any of the terms or provisions of this
Agreement shall be valid, unless the same shall be in writing and signed by
Buyer and Seller.

 

(c)  Counterparts.  This Agreement may be executed by facsimile
signature and in multiple counterparts each of which shall be deemed an
original but together shall constitute one agreement.

 

(d)  Applicable
Law.  This Agreement shall be
governed and construed according to the laws of the State of California.

 

(e)  Right
to Waive Conditions or Contingency. 
Either party may waive any of the terms and conditions of this Agreement
made for its benefit provided such waiver is in writing and signed by the party
waiving such term or condition.

 

(f)  Partial
Invalidity.  If any term, covenant,
condition or provision of this Agreement or the application thereof to any
person or circumstance shall be invalid or unenforceable, at any time or to any
extent, the remainder of this Agreement, or the application of such term or
provision to persons or circumstances other than those as to which it is held
invalid or unenforceable, shall not be affected thereby, unless such invalidity
or unenforceability materially frustrates the intent of the parties as set
forth herein.  Each term, covenant, condition
and provision of this Agreement shall be valid and enforced to the fullest
extent permitted by law.

 

(g)  Confidentiality.  Buyer agrees to treat all information
received with respect to the Property, whether such information is obtained
from Seller or from Buyer’s own due diligence investigations, in a confidential
manner.  Buyer shall not disclose any
such information to any third parties, other than such disclosure to Buyer’s
counsel, prospective lenders, consultants, accountants and advisers as may be
required in connection with the transactions contemplated hereby (such
disclosure to be made expressly subject to this confidentiality
requirement).  Seller and Buyer agree to
keep this Agreement confidential and not make any public announcements or
disclosures with respect to the subject matter of this Agreement prior to
Closing without the written consent of the other party; provided, however, that
the foregoing provisions of this paragraph shall not operate to limit the
ability of Seller or Buyer, as the case may be, to comply with the provisions
of applicable law, or any rules and regulations of the United States
Securities and Exchange Commission, that require disclosure.

 

26

 

(h)  Agreement
Not To Be Recorded.  This Agreement
shall not be filed of record by or on behalf of Buyer in any office or place of
public record.  If Buyer fails to comply
with the terms hereof by recording or attempting to record this Agreement or a
notice thereof, such act shall not operate to bind or cloud the title to the
Premises.  Seller shall, nevertheless,
have the right forthwith to institute appropriate legal proceedings to have the
same removed from record.  If Buyer or
any agent, broker or counsel acting for Buyer shall cause or permit this
Agreement or a copy thereof to be filed in an office or place of public record,
Seller, at its option, and in addition to Seller’s other rights and remedies,
may treat such act as a material default of this Agreement on the part of
Buyer.  However, the filing of this
Agreement in any lawsuit or other proceedings in which such document is
relevant or material shall not be deemed to be a violation of this Paragraph,
nor shall any other filing of this Agreement, if required under laws relating
to corporate governance, or under any rules and regulations of the United
States Securities and Exchange Commission, be deemed a violation of this
Paragraph.

 

24.                                                         Intentionally
Omitted.

 

25.                                                         Sophistication
of the Parties.  Each party hereto
hereby acknowledges and agrees that it has consulted legal counsel in
connection with the negotiation of this Agreement and that it has bargaining
power equal to that of the other parties hereto in connection with the
negotiation and execution of this Agreement. 
Accordingly, the parties hereto agree the rule of contract
construction to the effect that an agreement shall be construed against the
draftsman shall have no application in the construction or interpretation of
this Agreement.

 

26.                                                         Limited
Liability.  The obligations of Seller
under this Agreement or directly or indirectly arising out of this Agreement
shall be limited solely to Seller’s interest in the Premises and Personal
Property (and the sale proceeds thereof) and any other assets of Seller, and neither
Buyer nor any one else claiming by or through Buyer shall have any claim
against any direct or indirect partner, member or equity owner of Seller.

 

27.                                                         Marketing.  Seller shall have the right to market the
Premises to any other prospective purchasers during the period between the date
of this Agreement and the expiration of the Inspection Period; provided,
however, that Seller shall not enter into any agreement with any such
prospective purchaser unless the transactions contemplated thereby are contingent
upon the termination of this Agreement.

 

28.                                                         Enforcement.  If either party hereto fails to perform any
of its obligations under this Agreement or if a dispute arises between the
parties hereto concerning the meaning or interpretation of any provision of
this Agreement, then the defaulting party or the party not prevailing in such
dispute shall pay any and all costs and expenses incurred by the other party on
account of such default and/or in enforcing or establishing its rights
hereunder, including, without limitation, court costs and reasonable attorneys’
fees and disbursements.  Any such
attorneys’ fees and other expenses incurred by either party in enforcing a
judgment in its favor under this Agreement shall be recoverable separately from
and in addition to any other amount included in such judgment, and such
attorneys’ fees obligation is intended to be severable from the other
provisions of this Agreement and to survive and not be merged into any such
judgment.

 

[Signatures
on next page]

 

27

 

IN WITNESS WHEREOF, the parties hereto,
intending legally to be bound hereby, have executed this Agreement as of the
date first above written.

 

	
  SELLER:

  	
   

  
	
   

  	
   

  
	
  2975 STENDER ASSOCIATES LLC,

  	
   

  
	
  a Delaware limited liability company

  	
   

  
	
   

  	
   

  
	
  By:

  	
  P VI 2975 Stender LLC,

  	
   

  
	
   

  	
  a Delaware limited liability company,

  	
   

  
	
   

  	
  its managing member

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Christopher Hughes

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Christopher Hughes

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Vice President

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  BUYER:

  	
   

  
	
   

  	
   

  
	
  CATALYST SEMICONDUCTOR, INC.,

  	
   

  
	
  a Delaware corporation

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
  /s/ Thomas E. Gay III

  	
   

  	
   

  
	
  Name:

  	
   

  	
  Thomas E. Gay III

  	
   

  	
   

  
	
  Title:

  	
   

  	
  CFO & Secretary

  	
   

  	
   

  
												

 

 

ESCROWEE IS EXECUTING THIS AGREEMENT SOLELY
TO EVIDENCE ITS AGREEMENT TO BE BOUND BY THE ESCROW INSTRUCTIONS AND OTHER
DUTIES OF ESCROWEE SET FORTH IN THIS AGREEMENT.

 

	
  Escrowee:

  
	
   

  
	
  FIRST AMERICAN TITLE COMPANY

  
	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  
					

 

28

 

EXHIBIT ”A”

 

LEGAL DESCRIPTION

 

PARCEL 2, AS SHOWN UPON THAT CERTAIN MAP ENTITLED, “PARCEL MAP BEING A
RESUBDIVISION OF PARCEL “D” AS SHOWN ON THAT PARCEL MAP RECORDED IN BOOK 338 OF
MAPS AT PAGE 40”, WHICH MAP WAS FILED FOR RECORD IN THE OFFICE OF THE RECORDER
OF THE COUNTY OF SANTA CLARA, STATE OF CALIFORNIA, ON AUGUST 10, 1977 IN
BOOK 401 OF MAPS AT PAGE 38.

 

APN:                   216-29-106

 

A-1

 

EXHIBIT ”B”

 

PERSONAL
PROPERTY

 

None

 

B-1

 

EXHIBIT ”C”

 

INTENTIONALLY OMITTED

 

C-1

 

EXHIBIT ”D”

 

INTENTIONALLY OMITTED

 

D-1

 

EXHIBIT ”E”

 

SCHEDULE OF EXISTING AGREEMENTS

 

1.                                       Fire and Sprinkler – Pacific Auxiliary Fire
Alarm Company, dated November 21,
2005.

 

2.                                       Parking Lot Sweeping – Prosweep, dated November 14,
2005.

 

3.                                       Security Patrols – Golden State Security and
Patrol, dated November 1, 2005.

 

4.                                       Landscaping – Maniglia Landscaping, dated October 12,
2005.

 

5.                                       City of Santa Clara electric account number
00062282-03.

 

6.                                       City of Santa Clara water account numbers
00062282-03, 00062283-03,
00062281-03.

 

7.                                       Pacific Bell elevator phone accounts 408-844-8369
and 408-844-8503.

 

E-1

 

EXHIBIT ”F”

 

GENERAL ASSIGNMENT AND ASSUMPTION AGREEMENT

 

THIS GENERAL ASSIGNMENT AND ASSUMPTION AGREEMENT, made and entered into
as of this         day of                ,
         , [PRAEDIUM ENTITY], a
Delaware limited liability company, having an office c/o The Praedium Group,
LLC, 825 Third Avenue, 36th Floor, New York, New York 10022 (“Assignor”) and                               ,
a                               
having an office at
                                             (“Assignee”).

 

W I T N E S S E T H:

 

That Assignor for Ten and 00/100 Dollars ($10.00) and other good and
valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, hereby conveys, grants, bargains, sells, transfers, sets over,
assigns, releases, delivers and confirms to Assignee, without representation, warranty
or covenant, all of Assignor’s right, title and interest in and to (x) the
agreements, documents and instruments identified on Exhibit ”A”
hereto (the “Existing Agreements”)
and (y) to the extent transferable, all other documents, instruments, licenses,
permits and guaranties, if any, which relate to the Premises being conveyed to
Assignee by Assignor on the date hereof.

 

Assignee hereby expressly assumes the obligation for the performance of
any and all of the obligations of Assignor under the Existing Agreements.

 

Terms not defined herein shall have the meanings ascribed thereto in
the Agreement of Sale dated as of                     ,
2005 between Assignor and Assignee (“Agreement
of Sale”).

 

This Assignment and Assumption shall inure to the benefit of all
parties hereto and their respective heirs, successors and assigns.

 

THIS ASSIGNMENT IS MADE ON AN “AS-IS, WHERE-IS, WITH ALL FAULTS” BASIS,
WITHOUT RECOURSE AND WITHOUT ANY REPRESENTATION OR WARRANTY (EXPRESS OR
IMPLIED) WHATSOEVER EXCEPT AS MAY EXPRESSLY BE SET FORTH IN THE AGREEMENT
OF SALE.

 

F-1

 

IN WITNESS WHEREOF, the parties have executed this Assignment and
Assumption as of the day and year first above written. 

 

	
  ASSIGNOR:

  	
  [Praedium Entity]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  ASSIGNEE:

  	
   

  	
  ,

  	
   

  
	
   

  	
  a

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
											

 

Exhibit ”A”                                   -                                            Existing
Agreements

 

F-2

 

EXHIBIT ”G”

 

INFORMATION MATERIALS

 

A copy of each
of the following (to the extent in Seller’s possession):

 

1.               Phase I
Environmental Report, Clayton Group, August 2005

 

2.               Seismic Assessment
Report, Biggs Cardosa, dated August 2005

 

3.               Mechanical
Inspection Report, AirCom Mechanical, dated August 2005

 

4.               Roofing Report,
Weathershield, dated August 2005

 

5.               Preliminary Title
Report, First American Title, dated July 2005

 

6.               Asbestos Removal,
Asbestos Removal Services, August 2005

 

7.               ALTA Survey, Kier &
Wright Civil Engineers, dated August 2005

 

G-1

 

EXHIBIT ”H”

 

INTENTIONALLY OMITTED

 

H-3

 

EXHIBIT ”I”

 

INTENTIONALLY OMITTED

 

I-1

 

EXHIBIT ”J”

 

DEED

 

 

	
  RECORDING REQUESTED BY:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  WHEN RECORDED, RETURN TO:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  [Grantee]

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Attn:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  THIS SPACE FOR RECORDER’S
  USE ONLY

  
				

 

 

GRANT DEED

 

In accordance with Section 11932 of the
California Revenue and Taxation Code, as amended, Grantor has declared the
amount of transfer tax which is due by a separate statement that is not being
recorded with this Grant Deed.

 

FOR VALUABLE
CONSIDERATION, receipt of which is hereby
acknowledged, [PRAEDIUM ENTITY, a                                      ]
(“Grantor”), hereby GRANTS to:  [                                                                      ]
(collectively, “Grantee”), all of
Grantor’s right, title and interest in and to the real property located in the
City of Manhattan Beach, County of Los Angeles, State of California, and more
particularly described on Exhibit A attached hereto and
incorporated herein by reference (the “Property”).

 

SUBJECT TO:

 

1.                                       Taxes and
assessments which are a lien, but which are not yet billed, or are billed but
are not yet due and payable and any assessments not shown on the public record;
and subsequent assessments for prior years due to change in the land usage or
ownership;

 

2.                                       All matters that
would be disclosed by an accurate physical inspection or an accurate survey of
the Property;

 

3.                                       All covenants,
conditions, easements, restrictions, liens, encumbrances and other exceptions
of record; and

 

4.                                       All laws,
regulations or ordinances (including, but not limited to, zoning, building and
environmental laws, regulations and ordinances) applicable to the Property.

 

[signatures
on next page]

 

1

 

Signature
Page of Grant Deed

 

IN WITNESS WHEREOF,
Grantor has caused this Grant Deed to be executed as of the           
day of                            ,
2005.

 

“GRANTOR”:

 

2975 STENDER ASSOCIATES LLC,

a Delaware limited liability company

 

	
  By:

  	
  P VI 2975 Stender LLC,

  	
   

  
	
   

  	
  a Delaware limited liability company,

  	
   

  
	
   

  	
  its managing member

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  STATE OF 

  	
   

  	
  )

  
	
   

  	
   

  	
  )

  
	
  COUNTY OF 

  	
   

  	
  )

  
								

 

 

On                        ,
2005, before me,                                  ,
a Notary Public in and for said County and State, personally appeared                                                          ,
personally known to me (or proved to me on the basis of satisfactory evidence)
to be the persons whose names are subscribed to the within instrument and
acknowledged to me that they executed the same in their authorized capacities,
and that by their signatures on the instrument the persons, or the entity upon
behalf of which the persons acted, executed the instrument.

 

WITNESS my
hand and official seal.

 

	
   

  	
   

  	
   

  
	
  SIGNATURE OF
  NOTARY

  	
  (Notary
  Seal)

  

 

2

 

EXHIBIT A
TO GRANT DEED

 

Description of Property

 

3

 

STATEMENT OF TAX DUE AND REQUEST

THAT TAX DECLARATION NOT BE MADE A PART OF THE PERMANENT

RECORD IN THE OFFICE OF THE COUNTY RECORDER

 

(Pursuant to Cal. Rev. and Tax Code Section 11932)

 

To:                              Registrar
- Recorder

County of Santa Clara

 

Request is
hereby made in accordance with the provisions of the Documentary Transfer Tax
Act that the amount of tax due not be shown on the original document which
names:

 

2975 STENDER ASSOCIATES LLC,

a Delaware limited liability company, as Grantor

 

and

 

[                                              ]

as Grantee.

 

The property
described in the accompanying document is located in the City of Santa Clara,
County of Santa Clara, State of California. 
The amount of tax due on the accompanying document is
                                                                                   
($                         ),
computed on the full value of the property conveyed, less any liens remaining
on the property.

 

2975 STENDER ASSOCIATES LLC,

a Delaware limited liability company

 

	
  By:

  	
  P VI 2975 Stender LLC,

  	
   

  
	
   

  	
  a Delaware limited liability company,

  	
   

  
	
   

  	
  its managing member

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
							

 

J-1

 

EXHIBIT ”K”

 

BILL OF SALE

 

THIS BILL OF SALE is made as of the         
day of                ,
2005, from [PRAEDIUM ENTITY], a Delaware limited liability company (“Seller”), to                                                 ,  a                                              
(“Buyer”).

 

RECITALS:

 

WHEREAS, contemporaneously with the execution and delivery of this Bill
of Sale, Seller has sold and conveyed to Buyer all of Seller’s right, title and
interest and estate in and to the real property described in Exhibit ”A” attached hereto and
made a part hereof and all buildings, structures and improvements located
thereon by Deed of even date herewith (all of such buildings, structures,
improvements and real property collectively hereinafter referred to as the “Real Property”); and

 

WHEREAS, as a part of the consideration for the conveyance of the Real
Property, Seller has agreed to convey to Buyer Seller’s interest in the items
of personal property, if any, that are owned by Seller and located in and on
and used in connection with, the Real Property;

 

NOW, THEREFORE, in consideration of the sum of $10.00 and other good
and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, Seller does hereby (a) sell, assign, and convey to Buyer
(without any representation or warranty whatsoever) Seller’s right, title and
interest, if any, in and to the personal property, if any, that is owned by
Seller, located at the Real Property and used in connection with the management
or operation of the Real Property (whether or not any such items constitute “personal
property” or “fixtures” as a matter of state law) including, without
limitation, the items listed on Exhibit ”B”
attached hereto and (b) quit claim and release to Buyer, to the extent
existing and assignable, Seller’s right, title and interest (if any) in the
trade names, plans and specifications, construction warranties and guaranties,
tenant records, and like personal property, in the possession of Seller which
directly relate to the Real Property, subject in both cases to matters of
public record and to rights of tenants under written leases in effect on the
date hereof.

 

TO HAVE AND TO HOLD the same unto Buyer, its successors and assigns,
forever.

 

This Bill of Sale shall be binding upon and shall inure to the benefit
of Seller, Buyer and their respective successors and assigns.

 

This Bill of Sale shall be governed by and construed in accordance with
the laws of the State of California.

 

K-1

 

NOTWITHSTANDING ANYTHING CONTAINED IN THIS BILL OF SALE TO THE
CONTRARY, THIS BILL OF SALE IS MADE (I) WITHOUT ANY WARRANTY OR REPRESENTATION
OF ANY KIND WHATSOEVER, EXPRESS OR IMPLIED, EXCEPT AS EXPRESSLY SET FORTH IN
THE AGREEMENT OF SALE DATED AS OF                       ,
2005, WHICH REPRESENTATIONS, IF ANY, ARE THEREIN QUALIFIED, AND (II) SUBJECT TO
THE DISCLAIMERS, QUALIFICATIONS AND ENCUMBRANCES SET FORTH THEREIN, AND SUCH
DISCLAIMERS, QUALIFICATIONS AND ENCUMBRANCES ARE HEREBY INCORPORATED HEREIN BY
REFERENCE AND MADE A PART HEREOF.

 

IN WITNESS WHEREOF, Seller has caused this Bill of Sale to be duly
signed as of the day and year first written above.

 

 

SELLER:

 

[Praedium Entity]

 

 

	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  
					

 

 

BUYER:

 

[Buyer Entity]

 

 

	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  
					

 

 

Exhibit ”A”                                   -                                            Real
Property Description

 

Exhibit ”B”                                     -                                            Personal
Property

 

K-2

 

EXHIBIT ”L”

 

FIRPTA CERTIFICATION

 

A.                                   Federal
FIRPTA Certificate

 

To
inform                                                                          
(“Transferee”), that withholding
of tax under Section 1445 of the Internal Revenue Code of 1986, as amended
(the “Code”), will not be required
upon the transfer to Transferee by 2975 STENDER ASSOCIATES LLC, a Delaware
limited liability company (“Transferor”),
of certain real property, located at 2975 Stender Way, Santa Clara, California,
Transferor hereby certifies to Transferee:

 

1.  Transferor is not a foreign corporation,
foreign partnership, foreign trust, or foreign estate (as those terms are
defined in the Code and the regulations promulgated thereunder);

 

2.  Transferor is not a disregarded entity as
defined in §1.1445-2(b)(2)(iii) of the income tax regulations promulgated
under the Code.

 

3.  Transferor’s U.S. tax identification number
is                                  ;
and

 

4.  Transferor’s office address is 825 Third
Avenue, 36th Floor, New York, New York 10022.

 

Transferor
understands that this Certification may be disclosed to the Internal Revenue
Service by Transferee and that any false statement contained herein could be
punished by fine, imprisonment, or both.

 

B.                                     STATE
OF CALIFORNIA RESIDENT/NONRESIDENT AFFIDAVIT

 

In
accordance with Section 18662 of the Revenue and Taxation Code, a buyer
may be required to withhold an amount equal to 3-1/3 percent of the sales price
in the case of a disposition of California real property by either:

 

1.                                       A seller who
is an individual with a last known street address outside of California or when
the disbursement instructions authorize the proceeds to be sent to a financial
intermediary of seller, OR

 

2.                                       A corporate
seller which has no permanent place of business in California.

 

The
buyer may become subject to penalty for failure to withhold an amount equal to
the greater of 10 percent of the amount required to be withheld or five hundred
dollars ($500).  However, notwithstanding
any other provision included in the California statutes referenced above, no
buyer will be required to withhold any amount

 

N-1

 

or be subject to penalty for failure to withhold if:

 

(a)                                  The sales
price of the California real property conveyed does not exceed one hundred
thousand dollars ($100,000), OR

 

(b)                                 The seller
executes a written certificate, under the penalty of perjury, certifying that
the seller is a resident of California, or if a corporation, has a permanent
place of business in California, or if a limited liability company, is
classified as a partnership and is not a disregarded single-member limited
liability company for federal and California income tax purposes, OR

 

(c)                                  The seller,
who is an individual, executes a written certificate, under penalty of perjury,
that the California real property being conveyed is the seller’s principal
residence (as defined in Section 1034 of the Internal Revenue Code).

 

Transferor hereby certifies that it is not subject to the
above-mentioned withholding because it is classified as a partnership and is
not a disregarded single-member limited liability company for federal and
California income tax purposes.

 

Transferor understands that Transferee is relying on this Certification
in determining whether withholding is required upon said transfer.  Under penalties of perjury, I declare that I
have examined this certification and to the best of my knowledge and belief it
is true, correct, and complete, and I further declare that I have authority to
sign this document on behalf of Transferor.

 

Executed as of                                 ,
2005.

 

TRANSFEROR:

 

2975 STENDER ASSOCIATES LLC,

a Delaware limited liability company

 

	
  By:

  	
  P VI 2975 Stender LLC,

  
	
   

  	
  a Delaware limited liability company,

  
	
   

  	
  its managing member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

N-2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}]]