Document:

SECURITIES PURCHASE AGREEMENT

 Exhibit 4.6 
 EXECUTION COPY 
 SECURITIES PURCHASE AGREEMENT 
 SECURITIES PURCHASE AGREEMENT (the “Agreement”), dated as of October 30, 2006 by and among Antigenics Inc., a Delaware
corporation (the “Company”), and the investors listed on the Schedule of Buyers attached hereto (individually, a “Buyer” and collectively, the “Buyers”). 
 A. The Company and each Buyer is executing and delivering this Agreement in reliance upon the exemption from registration afforded by Section 4(2)
of the Securities Act of 1933, as amended (the “1933 Act”), and Rule 506 of Regulation D (“Regulation D”) as promulgated by the United States Securities and Exchange Commission (the “SEC”) under the
1933 Act. 
 B. The Company has authorized the issuance and sale of (i) $25,000,000 in principal amount of senior secured convertible
notes of the Company in the form attached hereto as Exhibit A (together with any senior secured convertible notes issued in replacement or exchange thereof in accordance with the terms thereof and any senior secured convertible notes issued
to pay interest in the form attached hereto as Exhibit B (“PIK Notes”), the “Notes”), which Notes shall be, in accordance with the terms of the Notes, convertible into shares (as converted, the
“Conversion Shares”) of the Company’s common stock, par value $.01 per share (“Company Common Stock”) or into Antigenics MA Shares (as defined below). 
 C. The Notes bear interest, which at the option of the Company, subject to certain conditions, may be paid in kind through the issuance of additional
Notes. 
 D. Each Buyer wishes to purchase, severally but not jointly, and the Company wishes to sell, upon the terms and conditions stated
in this Agreement, that aggregate principal amount of Notes set forth opposite such Buyer’s name in the Schedule of Buyers (which aggregate principal amount for all Buyers shall be $25,000,000). 
 E. The Company is agreeing to pledge all its shares (“Antigenics MA Shares”) in Antigenics Inc., a Massachusetts corporation
(“Antigenics MA”), to secure its obligations to pay interest on and principal of the Notes and, as evidenced by the Pledge and Security Agreement, dated as of the date hereof, by and among the company and the Buyers, substantially
in the form attached thereto as Exhibit C (the “Pledge and Security Agreement”) and in connection therewith the Company shall deliver the number of Antigenics MA Shares. 
 F. The Notes and the Conversion Shares collectively are referred to herein as the “Securities.” 

 1. PURCHASE AND SALE OF NOTES. 
 (a) Amount. Subject to the satisfaction (or waiver) of the conditions set forth in Sections 6 and 7 below, the Company shall issue and sell to each
Buyer, and each Buyer severally, but not jointly, shall purchase from the Company on the Closing Date (as defined below), the principal amount of Notes set forth opposite such Buyer’s name in the Schedule of Buyers. 
 (b) Closing. The closing (the “Closing”) of the purchase of the Notes by the Buyers shall occur at the offices of
Ropes & Gray, LLP, One International Place, Boston, Massachusetts 02110. The date and time of the Closing (the “Closing Date”) shall be 9:00 a.m., Boston City Time, on October 30, 2006, subject to notification of
satisfaction (or waiver) of the conditions to the Closing set forth in Sections 6 and 7 below (or such later date as is mutually agreed to by the Company and each Buyer). 
 (c) Purchase Price. The purchase price for each Buyer (the “Purchase Price”) of the Notes at the Closing shall be equal to the principal amount set forth opposite such Buyer’s name on the
Schedule of Buyers. 
 (d) Form of Payment. On the Closing Date, (i) each Buyer shall pay its aggregate applicable Purchase Price
to the Company for the Notes to be issued and sold to such Buyer at the Closing, by wire transfer of immediately available funds in accordance with the Company’s written wire instructions, and (ii) the Company shall deliver to each Buyer
the Notes which such Buyer is then purchasing, duly executed on behalf of the Company and registered in the name of such Buyer or its designee. 
 2. BUYER’S REPRESENTATIONS AND WARRANTIES. 
 Each Buyer represents and warrants with respect to
only itself that: 
 (a) No Public Sale or Distribution. Such Buyer is acquiring the Notes, and, upon conversion of the Notes, will
acquire the Conversion Shares, for its own account and not with a view towards, or for resale in connection with, the public sale or distribution thereof, except pursuant to sales registered or exempted under the 1933 Act; provided, however, that by
making the representations herein, such Buyer does not agree to hold any of the Securities for any minimum or other specific term and reserves the right to dispose of the Securities at any time in accordance with or pursuant to a registration
statement or an exemption under the 1933 Act. Such Buyer is acquiring the Securities hereunder in the ordinary course of its business. Such Buyer does not presently have any agreement or understanding, directly or indirectly, with any Person to
distribute any of the Securities. 
 (b) Accredited Investor Status. Such Buyer is an “accredited investor” as that term is
defined in Rule 501(a) of Regulation D. 
 (c) Reliance on Exemptions. Such Buyer understands that the Securities are being offered
and sold to it in reliance on specific exemptions from the registration requirements of United States federal and state securities laws and that the Company is relying in part upon the truth and accuracy of, and such Buyer’s compliance with,
the representations, warranties, agreements, acknowledgments and understandings of such Buyer set forth herein in order to determine the availability of such exemptions and the eligibility of such Buyer to acquire the Securities. 
  

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 (d) Information. Such Buyer and its advisors, if any, have been furnished with all materials
relating to the business, finances and operations of the Company and materials relating to the offer and sale of the Securities which have been requested by such Buyer. Such Buyer and its advisors, if any, have been afforded the opportunity to ask
questions of the Company. 
 (e) Experience of Such Buyer. Such Buyer understands that its investment in the Securities involves a
high degree of risk. Such Buyer, either alone or together with its representatives, has such knowledge, sophistication and experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective
investment in the Securities, and has so evaluated the merits and risks of such investment. Such Buyer is able to bear the economic risk of an investment in the Securities and is able to afford a complete loss of such investment. 
 (f) No Governmental Review. Such Buyer understands that no United States federal or state agency or any other government or governmental agency
has passed on or made any recommendation or endorsement of the Securities or the fairness or suitability of the investment in the Securities nor have such authorities passed upon or endorsed the merits of the offering of the Securities. 

(g) Transfer or Resale. Such Buyer will not sell, offer to sell, assign, pledge, hypothecate or otherwise transfer any of the Securities unless
(i) pursuant to an effective registration statement under the 1933 Act, (ii) such Buyer provides the Company with reasonable assurances and customary representations, that such Securities can be sold pursuant to Rule 144 under the 1933
Act. Notwithstanding anything to the contrary contained in the Agreement, such Buyer may transfer (without restriction) the Securities to its affiliates provided that such affiliate is an “accredited investor” under Regulation D and such
affiliate agrees to be bound by the terms and conditions of the Agreement. 
 (h) Legends. Such Buyer understands that the
certificates or other instruments representing the Notes and, until such time as the resale of the Conversion Shares have been registered under the 1933 Act, the stock certificates representing the Conversion Shares, except as set forth below, shall
bear any legend as required by the “blue sky” laws of any state and a restrictive legend in substantially the following form (and a stop-transfer order may be placed against transfer of such certificates and instruments): 
 NEITHER THIS NOTE NOR THE SECURITIES INTO WHICH THIS NOTE IS CONVERTIBLE HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE
STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND APPLICABLE STATE
SECURITIES LAWS, OR (B) THE TRANSFEROR PROVIDES THE COMPANY WITH REASONABLE ASSURANCES AND CUSTOMARY REPRESENTATIONS THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT AND APPLICABLE STATE SECURITIES LAWS. 
  

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 The legend set forth above shall be removed and the Company shall issue a certificate or instrument without such legend
to the holder of the Securities upon which it is stamped, if, unless otherwise required by state securities laws, (i) such Securities are registered for resale under the 1933 Act; provided, that each Buyer has complied with or covenants and
agrees that it will comply with the prospectus delivery requirements of the 1933 Act as applicable to it in connection with sales of such Securities pursuant to a registration statement or (ii) in connection with a sale, assignment or other
transfer, such holder provides the Company with reasonable assurances and customary representations to the effect that such legend is not required under applicable requirements of the 1933 Act. 
 (i) Validity; Enforcement. This Agreement and Pledge and Security Agreement have been duly and validly authorized, executed and delivered on
behalf of such Buyer and shall constitute the legal, valid and binding obligations of such Buyer, enforceable against such Buyer in accordance with their respective terms, except as such enforceability may be limited by general principles of equity
or to applicable bankruptcy, insolvency, reorganization, moratorium, liquidation and other similar laws relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies. 
 (j) No Conflicts. The execution, delivery and performance by such Buyer of this Agreement and the Pledge and Security Agreement to which such
Buyer is a party and the consummation by such Buyer of the transactions contemplated hereby and thereby will not (i) result in a violation of the organizational documents of such Buyer or (ii) conflict with, or constitute a default (or an
event which with notice or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument to which such Buyer is a party, or
(iii) result in a violation of any law, rule, regulation, order, judgment or decree (including federal and state securities laws) applicable to such Buyer, except in the case of clauses (ii) and (iii), for such conflicts, defaults, rights
or violations which would not, individually or in the aggregate, reasonably be expected to have a material adverse effect on the ability of such Buyer to perform its obligations hereunder. 
 (k) Residency. Such Buyer is a resident of that jurisdiction specified in its address on the Schedule of Buyers. 
 3. REPRESENTATIONS AND WARRANTIES OF THE COMPANY. 
 The Company represents and warrants to each of the Buyers that: 
 (a) Organization and Qualification.
Each of the Company and each Subsidiary is a corporation duly organized, validly existing and in good standing under the laws of the jurisdiction in which it is organized and has all requisite corporate power and authority to carry on its business
as now conducted. Each of the Company and each Subsidiary is duly qualified to transact business and is in good standing in each jurisdiction in which the failure so to qualify would have a Material Adverse Effect. As used in this Agreement,
“Material Adverse Effect” means any material adverse effect on the business, properties, assets, operations, results of operations, or financial condition of the Company and its subsidiaries taken as a whole. 
  

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 (b) Authorization; Enforcement; Validity. The Company has the requisite power and authority to
enter into and perform its obligations under this Agreement, the Notes, the Pledge and Security Agreements and the Guaranty Agreement (collectively, the “Transaction Documents”) and to issue the Securities in accordance with the
terms hereof and thereof. The execution and delivery of the Transaction Documents by the Company and the consummation by the Company of the transactions contemplated hereby and thereby, including, without limitation, the issuance of the Notes, the
reservation for issuance and the issuance of the Conversion Shares issuable upon conversion of the Notes, and the pledging of the Antigenics MA Shares have been duly authorized by the Company’s Board of Directors and no further corporate action
is required by the Company. This Agreement and the other Transaction Documents have been duly executed and delivered by the Company, and constitute the legal, valid and binding obligations of the Company, enforceable against the Company in
accordance with their respective terms, except as such enforceability may be limited by general principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting generally,
the enforcement of applicable creditors’ rights and remedies. 
 (c) Issuance of Securities. The issuance of the Notes and the
pledging of the Antigenics MA Shares have been duly authorized by the Company. As of the Closing, a number of shares of Company Common Stock shall have been duly authorized and reserved for issuance which equals the sum of 100% of the maximum number
of shares of Company Common Stock issuable upon conversion of the Notes on the Closing Date. Upon issuance or conversion in accordance with the Notes, the Conversion Shares will be validly issued, fully paid and nonassessable. Assuming the accuracy
of the Buyers’ representations and warranties contained herein, the offer and issuance by the Company of the Notes will be exempt from registration under the 1933 Act. 
 (d) No Conflicts. The execution, delivery and performance of the Transaction Documents by the Company and the consummation by the Company of the
transactions contemplated hereby and thereby (including, without limitation, the issuance of the Notes, the pledging of the Antigenics MA Shares and reservation for issuance and issuance of the Conversion Shares) will not (i) result in a
violation of the Certificate of Incorporation (as defined in Section 3(o)) or Bylaws (as defined in Section 3(o)) or (ii) conflict with, or constitute a default (or an event which with notice or lapse of time or both would become a
default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument to which the Company is a party, or (iii) result in a violation of any law, rule, regulation, order,
judgment or decree (including federal and state securities laws and regulations and the rules and regulations of the Nasdaq Stock Market (the “Principal Market”)) applicable to the Company or by which any property or asset of the
Company is bound or affected, except in the case of clauses (ii) and (iii), for such conflicts, defaults, rights or violations which would have a Material Adverse Effect. 
 (e) Consents. Except as disclosed in Schedule 3(e) and except for those failure of which to obtain or make would not have a Material Adverse
Effect, and any filings required pursuant to Section 4(b) hereof, the Company is not required to obtain any consent, authorization 
  

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 or order of, or make any filing or registration with, any court, governmental agency or any regulatory or any other
Person in order for it to execute, deliver or perform any of its obligations under or contemplated by the Transaction Documents, in each case in accordance with the terms hereof or thereof. All consents, authorizations, orders, filings and
registrations which the Company is required to obtain pursuant to the preceding sentence have been obtained or effected on or prior to the Closing Date. 
 (f) Acknowledgment Regarding Buyer’s Purchase of Securities. The Company acknowledges that no Buyer is acting as a financial advisor or fiduciary of the Company (or in any similar capacity) with respect to
the Transaction Documents and the transactions contemplated hereby and thereby, and any advice given by a Buyer or any of its representatives or agents in connection with the Transaction Documents and the transactions contemplated hereby and thereby
is merely incidental to such Buyer’s purchase of the Securities. The Company further represents to each Buyer that the Company’s decision to enter into the Transaction Documents has been based solely on the independent evaluation by the
Company and its representatives. 
 (g) No General Solicitation; Placement Agent’s Fees. Neither the Company, nor any Person
acting on its behalf, has engaged in any form of general solicitation or general advertising (within the meaning of Regulation D) in connection with the offer or sale of the Notes. No broker has acted on behalf of the Company in connection with this
Agreement, and there are no brokerage commissions, finders’ fees or similar fees or commissions payable in connection therewith based on any agreement, arrangement or understanding with the Company or any action taken by the Company.

 (h) No Integrated Offering. Neither the Company, nor any Person acting on its behalf, has, directly or indirectly, made any offers
or sales of any security or solicited any offers to buy any security, under circumstances that would require registration of the Notes to the Buyers under the 1933 Act or cause this offering of the Notes to be integrated with prior offerings by the
Company for purposes of the 1933 Act. 
 (i) SEC Documents; Financial Statements. Since December 31, 2005, the Company has filed
all reports, schedules, forms, statements and other documents required to be filed by it with the SEC pursuant to the reporting requirements of the Securities Exchange Act of 1934 (the “1934 Act”) (all of the foregoing and all
exhibits included therein and financial statements, notes and schedules thereto and documents incorporated by reference therein being hereinafter referred to as the “SEC Documents”). As of their respective dates, the SEC Documents
complied in all material respects with the requirements of the 1934 Act and the rules and regulations of the SEC promulgated thereunder and applicable thereto, and none of the SEC Documents, at the time they were filed with the SEC, contained any
untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading. As of their
respective dates, the financial statements of the Company included in the SEC Documents complied as to form in all material respects with applicable accounting requirements and the published rules and regulations of the SEC with respect thereto.
Such financial statements have been prepared in accordance with generally accepted accounting principles, consistently applied, during the periods involved (except (i) as may be otherwise indicated in such financial 
  

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 statements or the notes thereto, or (ii) in the case of unaudited interim statements, to the extent they may exclude
footnotes or may be condensed or summary statements) and fairly present in all material respects the financial position of the Company as of the dates thereof and the results of its operations and cash flows for the periods then ended (subject, in
the case of unaudited statements, to normal year-end audit adjustments). 
 (j) Absence of Certain Changes. Except as disclosed in the
SEC Documents since December 31, 2005, there has been no material adverse change and no material adverse development in the business, properties, assets, operations, results of operations, or financial condition of the Company or any
Subsidiary. 
 (k) Regulatory Permits. Each of the Company and each Subsidiary possesses all certificates, authorizations and permits
issued by the appropriate federal, state or foreign regulatory authorities necessary to conduct its business, except where the failure to possess such certificates, authorizations or permits would not have a Material Adverse Effect. Each of the
Company and each Subsidiary is not in violation of any judgment, decree or order or any statute, ordinance, rule or regulation applicable to it, except for violations which would not have a Material Adverse Effect. 
 (l) Foreign Corrupt Practices. Neither the Company or Subsidiary, nor any director, officer, agent, employee or other Person acting on behalf of
the Company or Subsidiary has, in the course of its actions for, or on behalf of, the Company or the Subsidiary (i) used any corporate funds for any unlawful contribution, gift, entertainment or other unlawful expenses relating to political
activity; (ii) made any direct or indirect unlawful payment to any foreign or domestic government official or employee from corporate funds; (iii) violated or is in violation of any provision of the U.S. Foreign Corrupt Practices Act of
1977, as amended; or (iv) made any unlawful bribe, rebate, payoff, influence payment, kickback or other unlawful payment to any foreign or domestic government official or employee. 
 (m) Sarbanes-Oxley Act. The Company is in compliance with any and all applicable requirements of the Sarbanes-Oxley Act of 2002 that are effective
as of the date hereof, and any and all applicable rules and regulations promulgated by the SEC thereunder that are effective as of the date hereof, except where such noncompliance would not have a Material Adverse Effect. 
 (n) Transactions With Affiliates. Except as disclosed in Schedule 3(n) and except as set forth in the SEC Documents, and other than the grant of
stock options and restricted and non-restricted stock grants disclosed that are required to be publicly disclosed, none of the officers, directors or employees of the Company is presently a party to any transaction with the Company (other than for
ordinary course services as employees, officers or directors) required to be disclosed pursuant to Regulation S-K Item 404, including any contract, agreement or other arrangement providing for the furnishing of services to or by, providing for
rental of real or personal property to or from, or otherwise requiring payments to or from any such officer, director or employee or, to the knowledge of the Company, any corporation, partnership, trust or other entity in which any such officer,
director, or employee has a substantial interest or is an officer, director, trustee or partner, which such transaction would be required to be disclosed. 
  

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 (o) Equity Capitalization. The capitalization of the Company as of September 30, 2006 is as
set forth on Schedule 3(o) hereto. All the outstanding shares of Company capital stock have been validly issued and are fully paid and nonassessable. Except as disclosed in Schedule 3(o): (i) none of the Company’s share capital is subject
to preemptive rights that would be triggered upon issuance of the Securities; (ii) except as disclosed in the Form 10-K of the Company filed in March 2006 with the SEC or subsequently filed Forms 10-Q or Forms 8-K, there are no outstanding
options, warrants, scrip, rights to subscribe for, calls or other rights convertible into, or exercisable or exchangeable for, any share capital of the Company by which the Company is bound to issue additional share capital of the Company, and
(iii) there are no outstanding debt securities, notes, credit agreements, credit facilities or other agreements, documents or instruments evidencing Indebtedness (as defined in Section 3(p)) by which the Company is bound. The Company has
made available to each Buyer true, correct and complete copies of the Company’s Certificate of Incorporation, as amended and as in effect on the date hereof (the “Certificate of Incorporation”), and the Company’s Bylaws,
as amended and as in effect on the date hereof (the “Bylaws”). 
 (p) Indebtedness and Other Contracts. Except as
disclosed in Schedule 3(p) or in the SEC Documents, each of the Company and each Subsidiary (i) has no outstanding Indebtedness (as defined below) other than Permitted Indebtedness (as defined in the Note), including Indebtedness secured by
Permitted Liens, and (ii) is not in violation of any term of or in default under any contract, agreement or instrument relating to any Indebtedness, except where such violations and defaults would not result in a Material Adverse Effect. For
purposes of this Agreement: (x) “Indebtedness” of any Person means, without duplication (A) all indebtedness for borrowed money, (B) all obligations issued, undertaken or assumed as the deferred purchase price of
property or services (including, without limitation, “capital leases” in accordance with generally accepted accounting principals) (other than trade payables entered into in the ordinary course of business), (C) all reimbursement or
payment obligations with respect to letters of credit, and surety bonds, (D) all obligations evidenced by notes, bonds, or debentures, (E) all indebtedness created or arising under any conditional sale or other title retention agreement,
or incurred as financing, in either case with respect to any property or assets acquired with the proceeds of such indebtedness (even though the rights and remedies of the seller or bank under such agreement in the event of default are limited to
repossession or sale of such property), (F) all monetary obligations under any leasing or similar arrangement which, in connection with generally accepted accounting principles, consistently applied for the periods covered thereby, is
classified as a capital lease, (G) all indebtedness referred to in clauses (A) through (F) above secured by any mortgage, lien, pledge, charge, or security interest upon or in any property or assets (including accounts and contract
rights) owned by any Person, even though the Person which owns such assets or property has not assumed or become liable for the payment of such indebtedness, and (H) all Contingent Obligations in respect of indebtedness or obligations of others
of the kinds referred to in clauses (A) through (G) above; (y) “Contingent Obligation” means, as to any Person, any direct or indirect liability, contingent or otherwise, of that Person with respect to any
indebtedness, lease, or other monetary obligation of another Person if the primary purpose or intent of the Person incurring such liability is to provide assurance to the obligee of such liability that such liability will be paid or discharged; and
(z) “Person” means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization and a government or any department or agency thereof. 
  

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 (q) Litigation. Except as set forth in Schedule 3(q) or in the SEC Reports, there is no action,
suit, proceeding, inquiry or investigation before any court, public board, government agency, self-regulatory organization or body pending other than those which would not have a Material Adverse Effect. Each of the Company and Antigenics MA, has,
in all material respects, complied with all laws, regulations and orders applicable to its business, including Pharmaceutical Laws (as defined below), and has all material permits and licenses required thereby. For purposes of this Agreement,
“Pharmaceutical Law” shall mean any federal, state, local or foreign law, statute, rule or regulation relating to the development, commercialization and sale of pharmaceutical and biotechnology products and devices, including all
applicable regulations of the U.S. Food and Drug Administration and comparable applicable foreign regulatory authorities. 
 (r)
Insurance. Each of the Company and each Subsidiary is insured by insurers of recognized financial responsibility against such losses and risks and in such amounts as are prudent and customary in the businesses in which either the Company or
Subsidiary is engaged. 
 (s) Employee Relations. The Company is not a party to any collective bargaining agreement. The Company is in
compliance with all federal, state, local and foreign laws and regulations respecting labor, employment and employment practices and benefits, terms and conditions of employment and wages and hours, except where failure to be in compliance would not
reasonably be expected to result in a Material Adverse Effect. 
 (t) Intellectual Property Rights. Except as disclosed with the
Securities and Exchange Commissions or as set forth on Schedule 3(t): (a) the Company and each of its subsidiaries owns or possesses adequate rights or licenses to use all trademarks, trade names, service marks, service mark registrations,
service names, patents, patent rights, copyrights, trade secrets and other intellectual property rights (“Intellectual Property Rights”) necessary to conduct their respective businesses as now conducted; (b) the Company does
not have any knowledge of any infringement by the Company of Intellectual Property Rights of others, nor does the Company have reason to believe that the Company has, or would infringe on the Intellectual Property Rights of others, the enforcement
of which would result in a Materially Adverse Effect on financial conditions; (c) there is no claim, action or proceeding against the Company regarding its Intellectual Property Rights; (d) the Company has no knowledge of any infringement
or improper use by any third party of any of the Company’s Intellectual Property Rights; (e) the Company has taken reasonable security measures to protect the secrecy, confidentiality and value of all of its Intellectual Property Rights;
(f) the Company shall own, or shall cause Antigenics MA to at all times own all right, title and interest in all Intellectual Property Rights, which the Company or Antigenics MA, respectively own as of the Issuance Date and which may exist in
the future, relating to QS-21 and AG-707. Such rights held by Antigenics MA shall include without limitation all rights, royalties or licensing revenues from the sale thereof relating to QS-21 and AG-707. Notwithstanding anything in this
Section 3(t) to the contrary, the Company may consummate a Spin-off (as such term is defined the Pledge and Security Agreement), enter into partnership, license and collaboration agreements and other similar arrangements. 
 (u) Environmental Laws. Each of the Company and each Subsidiary (i) is in compliance with any and all Environmental Laws (as hereinafter
defined), (ii) has received all 
  

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 permits, licenses or other approvals required of them under applicable Environmental Laws to conduct their respective
businesses and (iii) is in compliance with all terms and conditions of any such permit, license or approval where, in each of the foregoing clauses (i), (ii) and (iii), the failure to so comply could be reasonably expected to have,
individually or in the aggregate, a Material Adverse Effect. The term “Environmental Laws” means all federal, state, local or foreign laws relating to pollution or protection of human health or the environment (including, without
limitation, ambient air, surface water, groundwater, land surface or subsurface strata), including, without limitation, laws relating to emissions, discharges, releases or threatened releases of chemicals, pollutants, contaminants, or toxic or
hazardous substances or wastes (collectively, “Hazardous Materials”) into the environment, or otherwise relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of Hazardous
Materials, as well as all authorizations, codes, decrees, demands or demand letters, injunctions, judgments, licenses, notices or notice letters, orders, permits, plans or regulations issued, entered, promulgated or approved thereunder. 

(v) Investment Company. The Company is not, and is not an affiliate of, an “investment company” within the meaning of the Investment
Company Act of 1940, as amended. 
 (w) Tax Status. Except as would not have a Material Adverse Effect, the Company (i) has made
or filed all foreign, federal and state income and all other tax returns, reports and declarations required by any jurisdiction to which it is subject, (ii) has paid all taxes and other governmental assessments and charges that are material in
amount, shown or determined to be due on such returns, reports and declarations, except those being contested in good faith and (iii) has set aside on its books provision reasonably adequate for the payment of all taxes for periods subsequent
to the periods to which such returns, reports or declarations apply. 
 (x) Internal Accounting and Disclosure Controls. The Company
maintains a system of internal accounting controls sufficient to provide reasonable assurance that (i) transactions are executed in accordance with management’s general or specific authorizations, (ii) transactions are recorded as
necessary to permit preparation of financial statements in conformity with generally accepted accounting principles and to maintain asset and liability accountability, (iii) access to assets or incurrence of liabilities is permitted only in
accordance with management’s general or specific authorization and (iv) the recorded accountability for assets and liabilities is compared with the existing assets and liabilities at reasonable intervals and appropriate action is taken
with respect to any difference. The Company maintains disclosure controls and procedures (as such term is defined in Rule 13a-14 under the 1934 Act) that are effective in ensuring that information required to be disclosed by the Company in the
reports that it files or submits under the 1934 Act is recorded, processed, summarized and reported, within the time periods specified in the rules and forms of the SEC, including, without limitation, controls and procedures designed to ensure that
information required to be disclosed by the Company in the reports that it files or submits under the 1934 Act is accumulated and communicated to the Company’s management, including its principal executive officer or officers and its principal
financial officer or officers, as appropriate, to allow timely decisions regarding required disclosure. 
 (y) Off Balance Sheet
Arrangements. There is no transaction, arrangement, or other relationship between the Company and an unconsolidated or other off balance sheet entity that is required to be disclosed by the Company in its Exchange Act filings and is not so
disclosed or that otherwise would have a Material Adverse Effect. 
  

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 (z) Ranking of Notes. Except as disclosed on Schedule 3(p) or the SEC Documents, no Indebtedness
(other than Permitted Indebtedness (as defined in the Note), including Indebtedness secured by Permitted Liens) of the Company is senior to or ranks pari passu with the Notes in right of payment, whether with respect of payment of
redemptions, interest, damages or upon liquidation or dissolution or otherwise. 
 (aa) Antigenics MA Shares. 
 i. The Company is the beneficial and record owner of all of the Antigenics MA Shares, free and clear of any Liens, and upon transfer in accordance with
the applicable Transaction Documents, the Company will transfer to the Buyers good and marketable title to such Antigenics MA Shares, free and clear of any Liens imposed by or through the Company. 
 ii. The Company has no legal obligation, absolute or contingent, to any other Person to transfer or sell any of the Antigenics MA Shares. There is no
action, claim, suit, investigation or proceeding pending or, to the knowledge of the Company, threatened by or against or affecting the Company or the Company’s ownership of the Antigenics MA Shares before any court or governmental or
regulatory authority or body, that could materially impact the ability of the Company to pledge and transfer to the Buyers any Antigenics MA Shares. There are no writs, decrees, injunctions or orders of any court or governmental or regulatory
agency, authority or body outstanding against the Company with respect to the Antigenics MA Shares. 
 (bb) Transfer Taxes. On the
Closing Date, all stock transfer or other taxes (other than income or similar taxes) which are required to be paid in connection with the sale and transfer of the Notes to be sold to each Buyer hereunder will be, or will have been, fully paid or
provided for by the Company, and all laws imposing such taxes will be or will have been complied with. 
 (cc) Manipulation of Price.
The Company has not, and to its knowledge no one acting on its behalf has, (i) taken, directly or indirectly, any action designed to cause or to result in the stabilization or manipulation of the price of any security of the Company to
facilitate the sale of the Notes or (ii) sold, bid for, purchased, or paid any compensation for soliciting purchases in the marketplace of, any of the Notes. 
 (dd) Seniority. As of the Closing Date, no Indebtedness of the Company will be senior to the Notes in right of payment, whether with respect to interest or upon liquidation or dissolution, except as disclosed
on Schedule 3(p). 
 (ee) Subsidiaries. As of the Closing Date, each of the Company and Antigenics MA have no directly held Subsidiary
other than those listed on Schedule 3 (ee). The Company is the beneficial owner (and the Company or the Company’s Subsidiary listed on Schedule 3(ee) is the record owner) of all of the equity interests in the Company’s Subsidiaries
and holds such equity interests free and clear of all encumbrances except as are imposed by applicable securities laws. 
  

 11 

 4. COVENANTS. 
 (a) Efforts. Each party shall use its reasonable commercial efforts timely to satisfy each of the conditions to be satisfied by it as provided in
Sections 6 and 7 of this Agreement. 
 (b) Form D and Blue Sky. The Company agrees to file a Form D with respect to the Notes and to
provide a copy thereof to each Buyer promptly after such filing. The Company shall, on or before the Closing Date, take such action as the Company shall reasonably determine is necessary to be taken on or before the Closing Date in order to obtain
an exemption for or to qualify the Notes for sale to the Buyers at the Closing pursuant to this Agreement under applicable securities or “Blue Sky” laws of the states of the United States (or to obtain an exemption from such
qualification). The Company shall make all filings and reports relating to the offer and sale of the Notes required under applicable securities or “Blue Sky” laws of the states of the United States following the Closing Date. 

(c) Use of Proceeds. The Company will use the proceeds from the sale of the Notes for working capital and other general corporate purposes.

 5. REGISTER; TRANSFER AGENT INSTRUCTIONS. 
 (a) Register. The Company shall maintain at its principal executive offices (or such other office or agency of the Company as it may designate by
notice to each holder of Notes), a register for the Notes, in which the Company shall record the name and address of the Person in whose name the Notes have been issued (including the name and address of each transferee) the principal amount of the
Notes held by such Person. The Company shall keep the register open and available during business hours for inspection by any Buyer or its legal representatives upon prior written notice. 
 (b) Transfer Agent Instructions. The Company shall issue irrevocable instructions to its transfer agent, and any subsequent transfer agent, to
issue certificates or credit shares to the applicable balance accounts at The Depository Trust Company, registered in the name of each Buyer or its respective nominee(s), for the Conversion Shares, if any, in such amounts as specified from time to
time by each Buyer to the Company upon conversion of the Notes. The Company warrants that no instruction other than the Irrevocable Transfer Agent Instructions referred to in this Section 5(b), and stop transfer instructions to give effect to
Section 2(g) hereof, will be given by the Company to its transfer agent with respect to the Securities, and that the Securities shall otherwise be freely transferable on the books and records of the Company, as applicable, and to the extent
provided in this Agreement and the other Transaction Documents. 
 6. CONDITIONS TO THE COMPANY’S OBLIGATION TO
SELL. 
 The obligation of the Company hereunder to issue and sell the Notes to each Buyer at the Closing is subject to the satisfaction,
at or before the Closing Date, of each of the following conditions, provided that these conditions are for the Company’s sole benefit and may be waived by the Company at any time in its sole discretion by providing each Buyer with prior written
notice thereof: 
 (a) All of the Buyers shall have executed each of the Transaction Documents to which it is a party and delivered the same
to the Company. 
  

 12 

 (b) All of the Buyers shall have delivered to the Company the Purchase Price for the Notes being
purchased by such Buyer at the Closing by wire transfer of immediately available funds pursuant to the wire instructions provided by the Company. 
 (c) The representations and warranties of each Buyer shall be true and correct as of the date when made and as of the Closing Date as though made at that time (except for representations and warranties that speak as of a specific date), and
each Buyer shall have performed, satisfied and complied in all material respects with the covenants, agreements and conditions required by this Agreement to be performed, satisfied or complied with by such Buyer at or prior to the Closing Date.

 7. CONDITIONS TO EACH BUYER’S OBLIGATION TO PURCHASE. 
 The obligation of each Buyer hereunder to purchase the Notes at the Closing is subject to the satisfaction, at or before the Closing Date, of each of the
following conditions, provided that these conditions are for each Buyer’s sole benefit and may be waived by such Buyer at any time in its sole discretion by providing the Company with prior written notice thereof: 
 (a) The Company shall have executed and delivered to such Buyer (A) each of the Transaction Documents and (B) the Notes being purchased by such
Buyer at the Closing pursuant to this Agreement. 
 (b) Such Buyer shall have received the opinion of internal or external counsel to the
Company in form, scope and substance reasonably satisfactory to such Buyer. 
 (c) The Company shall have delivered to such Buyer a
certificate evidencing the incorporation and good standing of the Company and each of its Subsidiaries. 
 (d) The Company shall have
delivered to such Buyer a certificate evidencing the Company’s qualification as a foreign corporation issued by the Secretary of State of Massachusetts as of a date within five (5) days of the Closing Date. 
 (e) The Company shall have delivered to such Buyer a certified copy of the Certificate of Incorporation as certified by the Secretary of State of the
State of Delaware within five (5) days of the Closing Date. 
 (f) The Company shall have delivered to such Buyer a certificate,
executed by the Secretary of the Company and dated as of the Closing Date, as to (i) the resolutions adopted by the Company’s Board of Directors or a committee thereof in connection herewith, (ii) the Bylaws, and (iii) and the
incumbency of the officers executing documents on behalf of the Company in connection herewith. 
 (g) The representations and warranties of
the Company shall be true and correct in all material respects (except for those representations and warranties that are qualified by materiality or Material Adverse Effect, which shall be true and correct in all respects) as of the date of this

  

 13 

 Agreement and as of the Closing Date as though made at that time (except for representations and warranties that speak as
of a specific date) and the Company shall have performed, satisfied and complied in all material respects with the covenants, agreements and conditions required by the Transaction Documents to be performed, satisfied or complied with by the Company
at or prior to the Closing Date. Such Buyer shall have received a certificate, executed by the Chief Executive Officer of the Company, dated as of the Closing Date, as to the foregoing. 
 8. TERMINATION. 
 In
the event that the Closing shall not have occurred with respect to a Buyer on or before ten (10) Business Days from the date hereof due to the Company’s or such Buyer’s failure to satisfy the conditions set forth in Sections 6 and 7
above (and the nonbreaching party’s failure to waive such unsatisfied condition(s)), the nonbreaching party shall have the option to terminate this Agreement with respect to such breaching party at the close of business on such date without
liability of any party to any other party. 
 9. COLLATERAL AGENT 
 (a) Collateral Agent’s Authority to Act, etc. Each of the Buyers appoints and authorizes Ingalls & Snyder LLC to act for Buyers as
collateral agent (the “Collateral Agent”) in connection with the granting of a security interest in the Pledged Securities as contemplated by this Agreement and the Pledge and Security Agreement. All action in connection with the
enforcement of, or the exercise of any remedies under this Agreement and the Pledge and Security Agreement shall be taken in the manner set forth therein. 
 (b) Collateral Agent’s Resignation. The Collateral Agent may resign at any time by giving at least 30 days’ prior written notice of its intention to do so to each of the Buyers and the Company and
upon the appointment by the holders of at least 60% in principal amount of the outstanding Notes (the “Majority Noteholders”) of a successor Collateral Agent reasonably satisfactory to the Company. If no successor Collateral Agent
shall have been so appointed and shall have accepted such appointment within 15 days after the retiring Collateral Agent’s giving of such notice of resignation, then the retiring Collateral Agent may appoint a successor Collateral Agent which
shall be a bank or a trust company organized under the laws of the United States of America or any state thereof and having a combined capital, surplus and undivided profit of at least $500,000,000 (so long as no Event of Default exists) with the
consent of the Company, which shall not be unreasonably withheld; provided, however, that any successor Collateral Agent appointed under this sentence may be removed upon the written request of the Majority Noteholders, which request
shall also appoint a successor Collateral Agent (so long as no Event of Default exists) reasonably satisfactory to the Company. Upon the appointment of a new Collateral Agent hereunder, the term “Collateral Agent”, shall for all purposes
of this Agreement and the Pledge & Security Agreement thereafter mean such successor. After any retiring Collateral Agent’s resignation hereunder as Collateral Agent, or the removal hereunder of any successor Collateral Agent, the
provisions of this Agreement and the Pledge & Security Agreement shall continue to inure to the benefit of such retiring or removed Collateral Agent as to any actions taken or omitted to be taken by it while it was Collateral Agent under
this Agreement and the Pledge & Security Agreement. 
  

 14 

 (c) Concerning the Collateral Agent 
 i. Action in Good Faith, etc. The Collateral Agent and its officers, directors, employees and agents shall have no liability to any of the Buyers
or to any future holder of any Notes for any action or failure to act taken or suffered in good faith, and any action or failure to act in accordance with an opinion of its counsel shall conclusively be deemed to be in good faith. The Collateral
Agent shall in all cases be entitled to rely, and shall be fully protected in relying, on instructions given to the Collateral Agent by the Majority Noteholders. The Collateral Agent may execute releases and other collateral termination documents
with respect to assets disposed of by the Company as permitted by this Agreement. 
 ii. No Implied Duties, etc. The Collateral Agent
shall have and may exercise such powers as are specifically delegated to the Collateral Agent under this Agreement or the Pledge & Security Agreement together with all other powers incidental thereto. The Collateral Agent shall have no
implied duties to any Person or any obligation to take any action under this Agreement or the Pledge & Security Agreement except for action specifically provided for in this Agreement or the Pledge & Security Agreement to be taken
by the Collateral Agent. 
 iii. Validity, etc. The Collateral Agent shall not be responsible to any Buyer or any future holder of any
Notes (a) for the legality, validity, enforceability or effectiveness of this Agreement or the Pledge & Security Agreement, (b) for any recitals, reports, representations, warranties or statements contained in or made in
connection with this Agreement or the Pledge & Security Agreement, (c) for the existence or value of any assets included in any security for the Credit Obligations (as defined in the Pledge & Security Agreement), (d) for
the effectiveness of any lien purported to be included in the Pledged Securities, (e) for the specification or failure to specify any particular assets to be included in the Pledged Securities, or (f) unless the Collateral Agent shall have
failed to comply with Section 9(c)(i), for the perfection of the security interests. 
 iv. Compliance. The Collateral
Agent shall not be obligated to ascertain or inquire as to the performance or observance of any of the terms of this Agreement or the Pledge & Security Agreement. 
 v. Employment of Agents and Counsel. The Collateral Agent may execute any of its duties as Collateral Agent under this Agreement or the
Pledge & Security Agreement by or through employees, agents and attorneys-in-fact and shall not be responsible to any of the Buyers, any future holder of any Notes, or the Company for the default or misconduct of any such agents or
attorneys-in-fact selected by the Collateral Agent acting in good faith. The Collateral Agent shall be entitled to advice of counsel concerning all matters pertaining to the agency hereby created and its duties hereunder or under the
Pledge & Security Agreement. 
 vi. Reliance on Documents and Counsel. The Collateral Agent shall be entitled to rely, and
shall be fully protected in relying, upon any affidavit, certificate, cablegram, consent, instrument, letter, notice, order, document, statement, facsimile, telegram, telex or teletype message or writing reasonably believed in good faith by the
Collateral Agent to be genuine and correct and to have been signed, sent or made by the Person in question, including any telephonic or oral statement made by such Person, and, with respect to legal matters, upon an opinion or the advice of counsel
selected by the Collateral Agent. 
  

 15 

 vii. Collateral Agent’s Reimbursement. Each of the Buyers, and each future holder of Notes as
successor to a Buyer severally agrees to reimburse the Collateral Agent, pro rata in accordance with such Buyer’s percentage interest (determined based on the ratio of the aggregate principal amount of the Notes held by such Buyer
or holder of Notes to the aggregate amount of all outstanding Notes), for any reasonable expenses not reimbursed by the Company (without limiting the obligation of the Company to make such reimbursement): (a) for which the Collateral Agent is
entitled to reimbursement by the Company under this Agreement or the Pledge & Security Agreement and (b) after the occurrence and during the continuance of an Event of Default, for any other reasonable expenses incurred by the
Collateral Agent on the Buyers’ behalf in connection with the enforcement of the Buyers’ rights under this Agreement or the Pledge & Security Agreement; provided, however, that the Collateral Agent shall not be
reimbursed for any such expenses arising as a result of its gross negligence or willful misconduct. Such reimbursement shall be provided within 30 days of a written notice by the Collateral Agent , providing proof of expenses and amounts due from
each Buyer (calculated in the manner set forth in this Section 9(c)(vii))). 
 (d) Indemnification. The Buyers shall severally
indemnify the Collateral Agent and its officers, directors, employees, agents, attorneys, accountants, consultants and controlling Persons (to the extent not reimbursed by the Buyers and without limiting the obligation of the Buyers to do so),
pro rata in accordance with their respective percentage interests (as determined in accordance with Section 9(a)(vii)), from and against any and all liabilities, obligations, damages, penalties, actions, judgments, suits,
losses (including accrued and unpaid Collateral Agent’s fees), costs, expenses or disbursements of any kind whatsoever which may at any time be imposed on, incurred by or asserted against a Collateral Agent or such Persons relating to or
arising out of this Agreement, the Pledge & Security Agreement, the transactions contemplated hereby or thereby, or any action taken or omitted by the Collateral Agent in connection with any of the foregoing; provided,
however, that the foregoing shall not extend to actions or omissions which are determined in a final, nonappealable judgment by a court of competent jurisdiction to have been taken by the Collateral Agent with gross negligence or willful
misconduct. Such indemnification shall, in all cases, be provided within 30 days of a written notice by Collateral Agent, providing proof of expenses and amounts due from each Buyer (calculated in the manner set forth in Section 9(c)(vii)).

 (e) Assumption of Agent’s Rights. Notwithstanding anything herein or in this Agreement or the Pledge & Security
Agreement to the contrary, if at any time no Person constitutes a Collateral Agent hereunder or a Collateral Agent fails to act upon written directions from the Majority Noteholders, the Majority Noteholders shall be entitled to exercise any power,
right or privilege granted to the Collateral Agent under this Agreement or the Pledge & Security Agreement and in so acting the Majority Noteholders shall have the same rights, privileges, indemnities and protections provided to the
Collateral Agent under this Agreement or the Pledge & Security Agreement. 
  

 16 

 10. MISCELLANEOUS. 
 (a) Governing Law; Jurisdiction; Jury Trial. All questions concerning the construction, validity, enforcement and interpretation of this Agreement
shall be governed by the internal laws of the State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of New York or any other jurisdictions) that would cause the application of the
laws of any jurisdictions other than the State of New York. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in The City of New York, Borough of Manhattan, for the adjudication of any
dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to
the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper. Each party hereby irrevocably waives personal service of process and
consents to process being served in any such suit, action or proceeding by mailing a copy thereof to such party at the address for such notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of
process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. 
 (b) Counterparts. This Agreement may be executed in two or more identical counterparts, all of which shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and
delivered to the other party; provided that a facsimile signature shall be considered due execution and shall be binding upon the signatory thereto with the same force and effect as if the signature were an original, not a facsimile signature.

 (c) Headings. The headings of this Agreement are for convenience of reference and shall not form part of, or affect the
interpretation of, this Agreement. 
 (d) Severability. If any provision of this Agreement shall be invalid or unenforceable in any
jurisdiction, such invalidity or unenforceability shall not affect the validity or enforceability of the remainder of this Agreement in that jurisdiction or the validity or enforceability of any provision of this Agreement in any other jurisdiction.

 (e) Entire Agreement; Amendments. This Agreement supersedes all other prior oral or written agreements between the Buyers, the
Company, their affiliates and Persons acting on their behalf with respect to the matters discussed herein, and this Agreement and the instruments referenced herein contain the entire understanding of the parties with respect to the matters covered
herein and therein and, except as specifically set forth herein or therein, neither the Company nor any Buyer makes any representation, warranty, covenant or undertaking with respect to such matters. No provision of this Agreement may be amended
other than by an instrument in writing signed by the Company and the holders of Notes representing at least a majority of the aggregate principal amount of the Notes, or, if prior to the Closing Date, the Company and the Buyers listed on the
Schedule of Buyers as being obligated to purchase at least a majority of the aggregate principal amount of the Notes, and any amendment to this Agreement made in conformity with the provisions of this Section 9(e) shall be binding on all Buyers
and holders of Notes, as applicable. No provision hereof may be waived other than by an instrument in writing signed by the party against whom enforcement is sought. No such amendment shall 
  

 17 

 be effective to the extent that it applies to less than all of the holders of the Notes then outstanding. No
consideration shall be offered or paid to any Person to amend or consent to a waiver or modification of any provision of any of the Transaction Documents unless the same consideration also is offered to all of the parties to the Transaction
Documents. The Company has not, directly or indirectly, made any agreements with any Buyers relating to the terms or conditions of the transactions contemplated by the Transaction Documents except as set forth in the Transaction Documents.

 (f) Notices. Any notices, consents, waivers or other communications required or permitted to be given under the terms of this
Agreement must be in writing and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when sent by facsimile (provided confirmation of transmission is mechanically or electronically
generated and kept on file by the sending party); or (iii) one Business Day after deposit with an overnight courier service, in each case properly addressed to the party to receive the same. The addresses and facsimile numbers for such
communications shall be: 
 If to the Company: 
  

			
	Antigenics Inc.
	630 Fifth Avenue
	Suite 2100
	New York, NY 10111
	Telephone:	 	(212) 994-8200
	Facsimile:	 	(212) 994-8299
	Attention:	 	Garo H. Armen

 with a copy to: 
  

			
	Ropes & Gray LLP
	One International Place
	Boston, Massachusetts 02110
	Telephone:	 	(617) 951-7000
	Facsimile:	 	(617) 951-7050
	Attention:	 	Paul M. Kinsella

 If to a Buyer, to its address and facsimile number set forth on the Schedule of Buyers, with copies to such
Buyer’s representatives as set forth on the Schedule of Buyers, 
 with a copy (for informational purposes only) to: 
  

			
	Cohen & Gresser LLP
	100 Park Avenue
	New York, New York 10017
	Telephone:	 	(212) 957-7600
	Facsimile:	 	(212) 957-4514
	Attention:	 	Lawrence T. Gresser

  

 18 

 or to such other address and/or facsimile number and/or to the attention of such other Person as the recipient party has
specified by written notice given to each other party five (5) days prior to the effectiveness of such change. Written confirmation of receipt (A) given by the recipient of such notice, consent, waiver or other communication,
(B) mechanically or electronically generated by the sender’s facsimile machine containing the time, date, recipient facsimile number and an image of the first page of such transmission or (C) provided by an overnight courier service
shall be rebuttable evidence of personal service, receipt by facsimile or receipt from an overnight courier service in accordance with clause (i), (ii) or (iii) above, respectively. 
 (g) Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and
assigns, including any purchasers of the Notes. The Company shall not assign this Agreement or any rights or obligations hereunder without the prior written consent of the holders of at least a majority of the Notes hereunder. 
 (h) No Third Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective permitted successors and
assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other Person. 
 (i) Replacement of
Securities. If any certificate or instrument evidencing any Securities is mutilated, lost, stolen or destroyed, the Company shall issue or cause to be issued in exchange and substitution for and upon cancellation thereof, or in lieu of and
substitution therefor, a new certificate or instrument, but only upon receipt of evidence reasonably satisfactory to the Company of such loss, theft or destruction and customary and reasonable indemnity, if requested. The applicants for a new
certificate or instrument under such circumstances shall also pay any reasonable third-party costs associated with the issuance of such replacement Securities. 
 (j) Fees and expenses. Each party shall pay all costs and expenses that it incurs with respect to the negotiation, execution, delivery and performance of this Agreement; provided, however, that at the Closing,
the Company shall reimburse the Buyers for their reasonable legal and other professional fees and out of pocket expenses up to $100,000 in the aggregate. 
 (k) Confidentiality. At no time will a party, without the prior written consent of any other party, make any press releases or public announcements concerning this Agreement or the other ancillary agreements;
provided, however, that any party may make any public disclosure required by applicable law or any listing or trading agreement concerning its publicly traded securities (in which case the disclosing party will use its best efforts to
advise the other parties prior to making the disclosure). Each party shall keep confidential any and all information obtained in connection with this Agreement and shall not disclose any such information to any other Person except: (a) with the
prior written consent of the other party; (b) as required by law, regulation, or court order, but only after notice has been provided to such other party; or (c) for such information as shall have been publicly disclosed other than in
violation of this Agreement or of any other obligation of confidentiality to such other party. 
 [Signature Page Follows] 

 

 19 

 IN WITNESS WHEREOF, each Buyer and the Company have caused their respective signature page to this
Securities Purchase Agreement to be duly executed as of the date first written above. 
  

			
	COMPANY:
	
	ANTIGENICS INC.
		
	By:	 	 /s/ Garo H. Armen 

	Name:	 	Garo H. Armen
	Title:	 	Chairman & Chief Executive Officer

 Signature Page to Securities Purchase Agreement 

 IN WITNESS WHEREOF, each Buyer and the Company have caused their respective signature page to this
Securities Purchase Agreement to be duly executed as of the date first written above. 
  

			
	COLLATERAL AGENT:
	
	INGALLS & SNYDER LLC
		
	 By:
	 	 /s/ Thomas O. Boucher, Jr.

	 Name:
	 	Thomas O. Boucher, Jr.
	 Title:
	 	 Manager

 Signature Page to Securities Purchase Agreement 

 IN WITNESS WHEREOF, each Buyer and the Company have caused their respective signature page to this
Securities Purchase Agreement to be duly executed as of the date first written above. 
  

			
	BUYERS:
	
	Ingalls & Snyder Value Partners L.P.
		
	By:	 	 /s/ Thomas O. Boucher, Jr.

	Name:	 	Thomas O. Boucher, Jr.
	Title:	 	General Partner
	
	Penrith LTD
		
	By:	 	 /s/ Yvonne Koenig

	Name:	 	
	Title:	 	President + C.E.O.

 SCHEDULE OF BUYERS 
  

						
	 Buyer
	  	 Address and Facsimile Number
	  	Aggregate Principal
Amount of Notes
	 Ingalls & Snyder Value Partners L.P.
	  	 c/o Ingalls & Snyder LLC
 Attn: Tom
Boucher
 61 Broadway
 New York, NY 10006
  
 Facsimile: (212) 269-7893
	  	$	20,000,000
			
	 Penrith LTD
	  	 c/o Ingalls & Snyder LLC
 Attn: Tom
Boucher
 61 Broadway
 New York, NY 10006
  
 Facsimile: (212) 269-7893
	  	$	5,000,000

 EXHIBITS 
  

			
	Exhibit A	  	Form of Notes
	Exhibit B	  	Form of PIK Notes
	Exhibit C	  	Form of Pledge and Security Agreement
	Exhibit D	  	Form of Irrevocable Transfer Agent Instructions

 SCHEDULES 
  

			
	Schedule 3(e)	 	Consents
	Schedule 3(n)	 	Transaction with Affiliates
	Schedule 3(o)	 	Capitalization
	Schedule 3(p)	 	Indebtedness and Other Contracts/Seniority
	Schedule 3(q)	 	Litigation
	Schedule 3(t)	 	Intellectual Property Rights
	Schedule3(ee)	 	Subsidiaries

 Schedule 3(e) 
 Consents 
 None. 

 Schedule 3(n) 
 Transaction with Affiliates 
 None. 

 Schedule 3(o) 
 Capitalization 
 The following table sets forth our cash, cash equivalents and short-term investments and
capitalization as of June 30, 2006: 
  

	•	 	on an actual basis; and 

  

	•	 	on an adjusted basis to give effect to the sale of $25,000,000 aggregate principal amount of our 8.0% convertible senior notes due 2011, after deducting discounts and commissions
and estimated offering expenses to be paid by us. 

  

									
	 (in thousands, except per share data)
  
	  	As of June 30, 2006	 
	  	Actual	 	 	As adjusted	 
	  	(unaudited)	 
	 Cash, cash equivalents and short-term investments
	  	$	31,867	 	 	$	56,867	 
		  	 	 	 	 	 	 	 
	 Current portion, long-term debt
	  	 	1,204	 	 	 	1,204	 
	 Long-term debt, less current portion
	  	 	—  	 	 	 	—  	 
	 Convertible senior notes due 2025
	  	 	50,000	 	 	 	50,000	 
	 Convertible senior secured notes due 2011
	  	 	—  	 	 	 	25,000	 
		  	 	 	 	 	 	 	 
	 Total
	  	 	51,204	 	 	 	76,204	 
	 Stockholders’ equity:
	  				 			
	 Preferred Stock, par value $0.01 per share; 25,000,000 shares authorized; Series A Convertible Preferred Stock, par value $0.01 per share;
31,620 shares designated, issued and outstanding, actual and as adjusted
	  	 	—  	 	 	 	—  	 
	 Common stock, $0.01 par value per share; 100,000,000 shares authorized; 45,810,870 shares issued and outstanding, actual and as
adjusted
	  	 	458	 	 	 	458	 
	 Additional paid in capital
	  	 	441,926	 	 	 	441,926	 
	 Deferred compensation
	  	 	—  	 	 	 	—  	 
	 Accumulated other comprehensive (loss) income
	  	 	(52	)	 	 	(52	)
	 Accumulated deficit
	  	 	(439,286	)	 	 	(439,286	)
		  	 	 	 	 	 	 	 
	 Total stockholders’ equity
	  	 	3,046	 	 	 	3,046	 
		  	 	 	 	 	 	 	 
	 Total capitalization
	  	$	54,250	 	 	$	79,250	 
		  	 	 	 	 	 	 	 

 The table above should be read in conjunction with our consolidated financial statements and related notes. The
number of actual and as adjusted shares of our common stock outstanding excludes the following: 
  

	 	•	 	6,246,692 shares of our common stock issuable upon exercise of options outstanding as of June 30, 2006, at a weighted average exercise price of $8.31 per share, of which
options to purchase 2,978,702 shares were exercisable as of that date; 

	 	•	 	8,910 shares of our common stock issuable upon exercise of warrants outstanding as of June 30, 2006, at a weighted average exercise price of $54.71 per share, all of which were
exercisable as of that date; 

  

	 	•	 	79,203 shares outstanding under our Directors’ Deferred Compensation plan; 

  

	 	•	 	2,432,910 shares of our common stock available for future grant under our equity incentive plans as of June 30, 2006; 

  

	 	•	 	2,000,000 shares of our common stock issuable upon conversion of outstanding Series A Convertible Preferred Stock; 

  

	 	•	 	4,645,115 shares of our common stock initially issuable upon conversion of $50,000,000 aggregate principal amount of our 5.25% convertible senior notes due 2025; and

  

	 	•	 	7,142,857 shares of our common stick initially issuable upon conversion of $25,000,000 aggregate principal amount of our 8.0% convertible senior secured notes due 2011.

 Schedule 3(p) 
 Indebtedness and Other Contracts/Seniority 
 1. The Company owes $1,065,800 as debt to General Electric Corporation.

 2. The Company may owe a capital call of $375,000 to Applied Genomic Technology Capital Fund. 
 3. Letters of Credit in connection with security deposits in Lexington, Massachusetts, Framingham, Massachusetts and New York, New York. 
 4. Antigenics MA owes $146,061 in the form of subordinated debentures plus accrued interested of $51,490. 

 Schedule 3(q) 
 Litigation 
 None. 

 Schedule 3(t) 
 Intellectual Property Rights 
  

	1.	Antigenics MA has asserted a claim against Progenics Pharmaceuticals Inc. for possible infringement of Antigenics MA QS-21 patent rights and/or for misuse or misappropriation of
QS-21 under its License and Supply Agreement and Material Transfer Agreement with the Antigenics MA. Progenics disputes the claim and the parties are discussing and negotiating a settlement. 

  

	2.	The Company and its Subsidiaries from time to time in-licenses technology and patent rights that may related to the practice of the QS-21 and AG-707 Intellectual Property rights,
and generally only holds non-exclusive license rights under such agreements. 

  

	3.	The only agreements with third parties under which royalties are payable to third parties are the license agreements pertaining to AG-707 filed with the Securities and Exchange
Commission. 

  

	4.	Antigenics MA in the ordinary course of business enters into collaboration agreements, license agreements, and supply agreements with third parties seeking to develop and use QS-21
as a vaccine adjuvant under which Antigenics MA grants exclusive and non-exclusive license and supply rights under the Intellectual Property Rights to such third parties. 

  

	5.	The Company and Antigenics MA have entered into a royalty-free cross license that provides Antigenics MA with exclusive license rights to all Intellectual Property Rights owned or
controlled by the Company that are necessary to make, use, sell and import AG-707 and QS-21, and that provides the Company with exclusive license rights to all Intellectual Property Rights owned or controlled by Antigenics MA that are necessary to
make, use, sell and import any products other than AG-707 and QS-21. 

  

	6.	Antigenics MA and GlaxoSmithKline each hold an undivided joint ownership interest in 2 patent families covering the combined use of QS-21 and the combined use of saponins with an
aminoalkyl glucosminide phosphase. Antigenics MA’s co-ownership interest was assigned to Antigenics by Corixa under an agreement between Corixa and Antigenics MA. Corixa’s joint ownership interest was subsequently transferred to
GlaxoSmithKline in connection with its acquisition by GlaxoSmithKline. 

 Schedule 3(ee) 
 SubsidiariesPurchase and Sale Agreement

 Exhibit 10.1 
 PURCHASE AND SALE AGREEMENT 
 BETWEEN 
 GENERAL AMERICA CORPORATION, 
 GENERAL INSURANCE COMPANY OF AMERICA

 and 
 SAFECO
INSURANCE COMPANY OF AMERICA, 
 collectively as Seller, 
 AND 
 THE BOARD OF REGENTS OF THE UNIVERSITY OF WASHINGTON, 
 an agency of the State of Washington, 
 as Purchaser 
 with respect to 
 UNIVERSITY DISTRICT PROPERTIES, 
 SEATTLE, WASHINGTON 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
	 ARTICLE I.
	  	Definitions	  	1
			
	 Section 1.1
	  	Definitions	  	1
	 Section 1.2
	  	References; Exhibits and Schedules	  	7
			
	 ARTICLE II.
	  	Agreement of Purchase and Sale	  	7
			
	 Section 2.1
	  	Agreement	  	7
	 Section 2.2
	  	Indivisible Economic Package	  	8
	 Section 2.3
	  	Safeco Lease	  	8
			
	 ARTICLE III.
	  	Consideration	  	8
			
	 Section 3.1
	  	Purchase Price	  	8
	 Section 3.2
	  	Method of Payment of Purchase Price	  	8
			
	 ARTICLE IV.
	  	Earnest Money Deposit and Escrow Instructions	  	9
			
	 Section 4.1
	  	The Deposit	  	9
	 Section 4.2
	  	Escrow Instructions	  	9
	 Section 4.3
	  	Documents Deposited into Escrow	  	9
	 Section 4.4
	  	Close of Escrow	  	9
	 Section 4.5
	  	Maintenance of Confidentiality by Title Company	  	10
	 Section 4.6
	  	Investment of Earnest Money Deposit	  	10
	 Section 4.7
	  	Designation of Reporting Person	  	10
			
	 ARTICLE V.
	  	Inspection of Property	  	11
			
	 Section 5.1
	  	Entry and Inspection	  	11
	 Section 5.2
	  	Document Review	  	12
	 Section 5.3
	  	Entry and Inspection Obligations	  	13
	 Section 5.4
	  	Sale “As Is”	  	14
	 Section 5.5
	  	Material Defects	  	15
	 Section 5.6
	  	Hazardous Substances Waiver	  	16
			
	 ARTICLE VI.
	  	Title and Survey Matters	  	17
			
	 Section 6.1
	  	Survey	  	17
	 Section 6.2
	  	Title Commitment	  	17
	 Section 6.3
	  	Title Insurance	  	18
			
	 ARTICLE VII.
	  	Interim Operating Covenants	  	18
			
	 Section 7.1
	  	Interim Operating Covenants	  	18
		  	 (a)    Operations
	  	18
		  	 (b)    Maintain Insurance
	  	18
		  	 (c)    Leases
	  	18
		  	 (d)    Service Contracts
	  	18

  

 -i- 

					
		  	 (e)    Personal Property
	  	19
		  	 (f)     Notices
	  	19
		  	 (g)    Comply with Governmental Regulations
	  	19
			
	 ARTICLE VIII.
	  	Representations and Warranties	  	19
			
	 Section 8.1
	  	Seller’s Representations and Warranties	  	19
		  	 (a)    Due Formation and Authorization
	  	19
		  	 (b)    Consent
	  	19
		  	 (c)    Suits and Proceedings
	  	19
		  	 (d)    Leases
	  	20
		  	 (e)    Service Contracts
	  	20
		  	 (f)     No Violations
	  	20
		  	 (g)    Insolvency
	  	20
		  	 (h)    Environmental
	  	20
		  	 (i)     Bankruptcy
	  	20
		  	 (j)     Condemnation
	  	20
		  	 (k)    Insurance
	  	21
	 Section 8.2
	  	Purchaser’s Representations and Warranties	  	21
		  	 (a)    Due Formation and Authorization
	  	21
		  	 (b)    Non-Contravention
	  	21
		  	 (c)    Consents
	  	21
	 Section 8.3
	  	Patriot Act	  	21
			
	 ARTICLE IX.
	  	Condemnation and Casualty	  	22
			
	 Section 9.1
	  	Significant Casualty	  	22
	 Section 9.2
	  	Casualty of Less Than a Significant Portion	  	22
	 Section 9.3
	  	Condemnation of Property	  	22
			
	 ARTICLE X.
	  	Closing	  	23
			
	 Section 10.1
	  	Closing Conditions	  	23
	 Section 10.1.1         Purchaser’s Closing Conditions
	  	23
	 Section 10.1.2         Seller’s Conditions to Closing
	  	24
	 Section 10.2
	  	Closing	  	24
	 Section 10.3
	  	Purchaser’s Closing Obligations	  	24
	 Section 10.4
	  	Seller’s Closing Obligations	  	25
	 Section 10.5
	  	Prorations	  	26
	 Section 10.6
	  	Delivery of Real Property	  	26
	 Section 10.7
	  	Costs of Title Company and Closing Costs	  	26
	 Section 10.8
	  	Post-Closing Delivery of Lease Notice	  	26
	 Section 10.9
	  	Collegiana Lawsuit	  	27
	 Section 10.10
	  	Collegiana Hold-Back	  	27
			
	 ARTICLE XI.
	  	Brokerage	  	28
			
	 Section 11.1
	  	Brokers	  	28

  

 -ii- 

					
	 ARTICLE XII.
	  	Confidentiality	  	28
			
	 Section 12.1
	  	Confidentiality	  	28
			
	 ARTICLE XIII.
	  	Remedies	  	29
			
	 Section 13.1
	  	Purchaser’s Remedies	  	29
	 Section 13.2
	  	Default By Purchaser	  	30
	 Section 13.3
	  	Consequential and Punitive Damages	  	31
			
	 ARTICLE XIV.
	  	Notices	  	31
			
	 Section 14.1
	  	Notices	  	31
			
	 ARTICLE XV.
	  	Assignment and Binding Effect	  	32
			
	 Section 15.1
	  	Assignment; Binding Effect	  	32
			
	 ARTICLE XVI.
	  	Purchaser Claims Period	  	33
			
	 Section 16.1
	  	Purchaser Claims Period; Limitation	  	33
			
	 ARTICLE XVII.
	  	Miscellaneous	  	33
			
	 Section 17.1
	  	Waivers	  	33
	 Section 17.2
	  	Recovery of Certain Fees	  	33
	 Section 17.3
	  	Time of Essence	  	33
	 Section 17.4
	  	Construction	  	34
	 Section 17.5
	  	Counterparts	  	34
	 Section 17.6
	  	Severability	  	34
	 Section 17.7
	  	Entire Agreement	  	34
	 Section 17.8
	  	Governing Law	  	34
	 Section 17.9
	  	Recording	  	34
	 Section 17.10
	  	Further Actions	  	35
	 Section 17.11
	  	No Other Inducements	  	35
	 Section 17.12
	  	Exhibits	  	35
	 Section 17.13
	  	No Partnership	  	35
	 Section 17.14
	  	Limitations on Benefits	  	35

  

 -iii- 

			
	EXHIBITS	  	
		
	Exhibit A	  	 Personal Property

	Exhibit B	  	 Legal Descriptions

	Exhibit C	  	 Leases

	Exhibit D	  	 Service Contracts

	Exhibit E	  	 Pending Proceedings

	Exhibit F	  	 Form of Safeco Lease

	Exhibit G	  	 Form of Blanket Conveyance

	Exhibit H-l	  	 Form of Deed

	Exhibit H-2	  	 Quitclaim Deed

	Exhibit I	  	 Form of Certificate as to Foreign Status

	Exhibit J	  	 Form of Estoppel Certificates

	Exhibit K	  	 Specific Permitted Exceptions

	Exhibit L	  	 Memorandum of Purchase and Sale Agreement

  

 -iv- 

 PURCHASE AND SALE AGREEMENT AND JOINT ESCROW INSTRUCTIONS 
 THIS PURCHASE AND SALE AGREEMENT AND JOINT ESCROW INSTRUCTIONS (this “Agreement”) is entered into and effective for all purposes
as of August 28, 2006 (the “Effective Date”), by and between GENERAL AMERICA CORPORATION, a Washington corporation, GENERAL INSURANCE COMPANY OF AMERICA, a Washington corporation and SAFECO INSURANCE
COMPANY OF AMERICA, a Washington corporation (collectively “Seller”), and THE BOARD OF REGENTS OF THE UNIVERSITY OF WASHINGTON, an agency of the State of Washington (“Purchaser”).

 In consideration of the mutual promises, covenants and agreements set forth herein, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, Seller and Purchaser agree as follows: 
 ARTICLE I. 
 DEFINITIONS 
 Section 1.1
Definitions. For purposes of this Agreement, the following capitalized terms have the meanings set forth in this Section 1.1: 
 “Adjacent Land Site” means that certain real property with a street address of 4301 Brooklyn Avenue NE., Seattle and legally described as Parcel C on Exhibit B attached hereto and by this reference
incorporated herein. 
 “Affiliate” means any person or entity that directly, or indirectly through one or more
intermediaries, controls, is controlled by or is under common control with Purchaser or Seller, as the case may be. For the purposes of this definition, “control” means the possession, direct or indirect, of the power to direct or
cause the direction of the management and policies of a person or entity, whether through the ownership of voting securities, by contract or otherwise, and the terms “controlling” and “controlled” have the meanings correlative to
the foregoing. 
 “Agreed Expenditures” has the meaning ascribed to such term in Section 10.10. 
 “Authorities” means the various governmental and quasi-governmental bodies or agencies having jurisdiction over Seller, the Real
Property, the Improvements, or any portion thereof. 
 “Blanket Conveyance” has the meaning ascribed to such term in
Section 10.3(b). 
 “Broker” has the meaning ascribed to such term in Section 11.1. 
 “Buildings” means all buildings and other structures located on the Real Property, including, but not limited to, certain buildings
commonly known as the Safeco Tower, Office Buildings C, O & S, Building A, Garages A & B, a corporate housing building commonly known as The Collegiana, a restaurant building located on the Adjacent Land Site and the Skybridges, 

 

 -1- 

 but in the case of the Skybridges, subject to the express limitation that the continued rights of presence and use
thereof are subject to the limitations and conditions contained in the City of Seattle ordinances permitting their use. 
 “Business
Day” means any day other than a Saturday, Sunday or a day on which national banking associations are authorized or required to close. 
 “Cancellation Charges” has the meaning ascribed to such term in Section 9.1. 
 “Certificate as to
Foreign Status” has the meaning ascribed to such term in Section 10.4(d). 
 “Claims” has the meaning
ascribed to such term in Section 5.3(b). 
 “Closing” means the consummation of the purchase and sale of the Property
contemplated by this Agreement, as provided for in Article X. 
 “Closing Date” means the date on which the Closing
occurs, which date will be determined as provided in Section 10.2, or such earlier or later date to which Purchaser and Seller may hereafter agree in writing. 
 “Closing Surviving Obligations” means the rights, liabilities and obligations set forth in Sections 5.2, 5.3, 5.4, through 5.6, 8.1, 8.2, 10.5,
10.8, 10.9, 10.10, 11.1, 12.1, 13.3, 14.1, 16.1 and 17.2 and 17.8. 
 “Collegiana Lawsuit” refers to the lawsuit described in Exhibit E. 
 “Collegiana
Property” means that certain real property having a street address of 4311 12th Avenue N.E., Seattle and
legally described as Parcel H on Exhibit B attached hereto and by this reference incorporated herein. 
 “Commitment” has the meaning ascribed to such term in Section 6.2. 
 “Confidential
Information” has the meaning ascribed to such term in Section 5.2(b). 
 “Deed” has the meaning ascribed to
such term in Section 10.4(a). 
 “Deposit Time” has the meaning ascribed to such term in Section 3.2.

 “Documents” has the meaning ascribed to such term in Section 5.2. 
 “Earnest Money Deposit” has the meaning ascribed to such term in Section 4.1. 
 “Effective Date” has the meaning ascribed to such term in the opening paragraph of this Agreement. 
 “Environmental Laws” means all federal, state and local environmental laws, ordinances, rules, statutes, directives, binding written
interpretations, binding written policies, 
  

 -2- 

 and regulations issued by any Authorities and in effect as of the Effective Date with respect to or that otherwise
pertain to or affect any portion of the Real Property or the Improvements or the use, ownership, occupancy or operation of any portion of the Real Property or the Improvements, as same have been amended, modified or supplemented from time to time
prior to the date of this Agreement, including, but not limited to, the National Environmental Policy Act (42 U.S.C. § 4321 et seq.), the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (42 U.S.C. § 9601 et
seq.) (“CERCLA”), as amended by the Superfund Amendments and Reauthorization Act of 1986 (42 U.S.C. § 9601 et seq.), the Hazardous Substances Transportation Act (49 U.S.C. § 1802 et seq.), the Resource Conservation
and Recovery Act (42 U.S.C. § 6901 et seq.) (“RCRA”), as amended by the Hazardous and Solid Wastes Amendments of 1984 (U.S.C. § et seq.), the Water Pollution Control Act (33 U.S.C. § 1251 et seq.), the Safe
Drinking Water Act (42 U.S.C. § 300f et seq.), the Clean Air Act (42 U.S.C. § 7401 et seq.), the Clean Water Act (33 U.S.C. § 1321 et seq.), the Solid Waste Disposal Act (42 U.S.C. § 6901 et seq.), the Toxic Substances Control
Act (15 U.S.C. § 2601 et seq.), the Emergency Planning and Community Right-to-Know Act of 1986 (42 U.S.C. § 11001 et seq.), the Radon and Indoor Air Quality Research Act (42 U.S.C. § 7401 note, et seq.), the Occupational Safety and
Health Act (29 U.S.C. § 651 et seq.), as such laws have been amended and/or supplemented from time to time prior to the date of this Agreement, comparable state and local laws, and any and all rules and regulations promulgated under any of the
above that have become effective prior to the Effective Date under any and all of the aforementioned laws. 
 “Escrow
Instructions” has the meaning ascribed to such term in Section 4.2. 
 “Escrowed Funds” has the meaning
ascribed to such term in Section 10.10. 
 “Estoppel Certificates” means estoppel certificates executed by Tenants in
substantially the form attached hereto as Exhibit J or in lieu of such estoppel certificates from one or more such tenants, an estoppel from Seller confirming that Seller has not received notice of any claims from any of the Tenants
under the Leases. 
 “Executive Order” has the meaning ascribed to such term in Section 8.3. 
 “Governmental Regulations” means all federal, state and local laws, ordinances, rules, statutes, directives, binding written
interpretations, binding written policies, and regulations issued by any Authorities applicable to Seller, the Real Property or the Improvements, or the use, ownership, occupancy or operation of any portion of the Real Property or the Improvements.

 “Hazardous Substances” means all (a) asbestos, radon gas, electromagnetic waves, urea formaldehyde foam insulation
and transformers or other equipment that contains dielectric fluid containing polychlorinated biphenyls (“PCBs”) of 50 ppm or greater, (b) any solid, liquid, gaseous or thermal contaminant, including smoke vapor, soot,
fumes, acids, alkalis, chemicals, waste, petroleum products or byproducts, asbestos, PCBs, phosphates, lead or other heavy metals, chlorine, or radon gas, (c) any solid or liquid wastes (including hazardous wastes), hazardous air pollutants,
hazardous substances, hazardous chemical substances and mixtures, toxic substances, pollutants and contaminants, as such terms are defined in any Environmental Law, and any and all rules and regulations promulgated under any of the above, and
(d) any 
  

 -3- 

 other chemical, material or substance, the use or presence of which, or exposure to the use or presence of which, is
prohibited, limited or regulated by any Environmental Laws, as the same exist on the Effective Date. 
 “I-HOP” means IHOP
Properties, Inc., a California corporation, the successor in interest to the original lessee under the I-HOP Lease. 
 “I-HOP
Lease” means that certain lease dated January 6, 1967 between General Insurance Company of America as successor in interest to the original lessor under the lease and IHOP Properties, Inc., a California corporation, as successor in
interest to the original lessee under said lease, as amended, for the lease of the Adjacent Land Site. 
 “Improvements”
means Seller’s interest in all buildings, structures, fixtures, parking areas and other improvements located on the Real Property prior to the Closing. 
 “Intervening Liens” has the meaning ascribed to such term in Section 6.2(c). 
 “Inspections” has the meaning ascribed to such term in Section 5.1 (a).  
 “Invasive
Testing” has the meaning ascribed to such term in Section 5.1 (a).  
 “Invasive Testing Plan”
has the meaning ascribed to such term in Section 5.l(a)(i). 
 “Kauri” has the meaning ascribed to such term
in Section 10.9. 
 “Leases” means the leases of all or any portion of the Real Property or the Improvements
listed on Exhibit C attached hereto. 
 “Licensee Parties” has the meaning ascribed to such term in
Section 5.1 (a). 
 “Licenses and Permits” means all licenses, permits, certificates of occupancy, approvals,
dedications, subdivision maps and entitlements now or hereafter issued, approved or granted by the Authorities in connection with the Real Property, the Improvements, or the Personal Property generally to the extent assignable or transferable
(together with all renewals, supplements, and modifications thereof). 
 “List” has the meaning ascribed to such term in
Section 8.3.  
 “Occupants” means the parties currently occupying portions of the Property. 

 “Official Records” means the Official Records of King County, Washington.  
 “Patriot Act” has the meaning ascribed to such term in Section 8.3. 
 “Permitted Exceptions” means and includes all of the following: (a) matters attributable to the acts or omissions of Purchaser or
its employees, agents, contractors or consultants; (b) rights reserved in federal patents or state deeds; (c) building and use restrictions general to the area; (d) building and zoning codes; and (e) the other matters approved or
deemed approved by Purchaser pursuant to Section 6.2 hereof. 
  

 -4- 

 “Permitted Outside Parties” has the meaning ascribed to such term in Section
5.2(b). 
 “Personal Property” means all of Seller’s right, title and interest in and to the items described on
Exhibit A attached hereto. 
 “Prohibited Person” has the meaning ascribed to such term in
Section 8.3.  
 “Property” has the meaning ascribed to such term in Section 2.1. 

 “Purchase Price” has the meaning ascribed to such term in Section 3.1. 
 “Purchaser’s Closing Conditions” has the meaning ascribed to such term in Section 10.1. 
 “Purchaser’s Deductions” has the meaning ascribed to such term in Section 10.10.  
 “Purchaser’s Information” has the meaning ascribed to such term in Section 5.2(c). 
 “Real Property” means those certain parcels of real property located in Seattle, Washington, as more particularly described on
Exhibit B attached hereto and made a part hereof, together with all of Seller’s right, title and interest in and to any appurtenances pertaining thereto, including, but not limited to, Seller’s right, title and interest in
and to the adjacent streets, alleys and right-of-ways, and any easement rights, air rights, subsurface rights, development rights, entitlements and water rights appurtenant thereto. 
 “Records and Plans” means, collectively: (i) books and records relating solely to the Real Property or the Improvements;
(ii) structural reviews, architectural drawings and environmental, engineering, soils, seismic, geologic, architectural, and other consulting reports, studies and certificates pertaining to the Real Property or the Improvements; and
(iii) all preliminary, final and proposed plans, specifications and drawings of the Improvements or the Real Property. The terms “Records and Plans” shall not include (1) any document or correspondence that is subject to the
attorney-client privilege or constitutes work product; (2) any document or item that Seller is bound to keep strictly confidential pursuant to the terms of any Governmental Regulation that became effective prior to the date of this Agreement or
to the terms of any arms-length contract entered into prior to the date of this Agreement with any person or entity that is not an Affiliate of Seller; (3) any documents prepared in connection with Seller’s determination of whether to sell
the Property or relating or pertaining to the marketing of the Property for sale to prospective purchasers; (4) any internal memoranda, reports, studies or assessments of Seller or Seller’s Affiliates relating to Seller’s valuation of
the Property and reports, studies, analysis and evaluations prepared by others for Seller or Seller’s Affiliates for use in connection with such valuation; (5) appraisals of the Property; and (6) records and documents related to the
business of Seller. 
 “Released Seller Entities” has the meaning ascribed to such term in Section 5.5.

  

 -5- 

 “Reporting Person” has the meaning ascribed to such term in Section 4.7.

 “Safeco” means Safeco Insurance Company of America. 
 “Safeco Lease” means the Lease from Purchaser to Safeco in the form of Exhibit F of those parcels of Real Property
described on Exhibit B under the headings Tower, Buildings O, C and S and Garages A and B. 
 “Seller’s
Control” means in the possession of or under the control of Seller or its Affiliates. 
 “Seller Representatives”
has the meaning ascribed to such term in Section 5.1(a). 
 “Service Contracts” means all service
agreements, maintenance contracts, equipment leasing agreements, warranties, guarantees, bonds, open purchase orders and other contracts for the provision of labor, services, materials or supplies relating solely to the Property and under which
Seller is or as of the Closing will be paying for or receiving compensation for services rendered in connection with the Property, including the contracts and other agreements listed and described on Exhibit D attached hereto, together
with all renewals, supplements, amendments and modifications thereof, and any new such agreements entered into after the Effective Date, to the extent permitted by Section 7.1, except that any leasing or brokerage agreements will be
terminated at the Closing and are excluded from such term. Purchaser will not assume Service Contracts at Closing that Seller has entered into and which set forth the standards it has established for its business operations, but Seller shall
maintain them in effect for its account during the term of the Safeco Lease. 
 “Significant Portion” means, for purposes of
Article IX, (i) loss or damage to the Property or any portion thereof such that the cost of repairing or restoring the premises in question to a condition substantially identical to that of the premises in question prior to the event of
damage would be, in the opinion of a qualified unbiased architect selected by Purchaser in its reasonable discretion, equal to or greater than Five Million Dollars ($5,000,000); or (ii) any loss due to a condemnation which permanently and
materially impairs the current use of any of the Buildings. 
 “Skybridges” means the Pedestrian/Vehicular Skybridge with
respect to the Property, as authorized by City of Seattle Ordinance number 119161 and the Pedestrian Skybridge with respect to the Property, as authorized by City of Seattle Ordinance number 119532. 
 “Survey” has the meaning ascribed to such term in Section 6.1. 
 “Tenants” means tenants, or their successors, assignees or sublessees who have a right to possession of all or any portion of the Real
Property or the Improvements under a Lease. 
 “Termination Surviving Obligations” means the rights, liabilities and
obligations set forth in Sections 5.2, 5.3, 5.4 through 5.6, 11.1, 12.1, Article XIII, Section 14.1, and Sections 17.2 and 17.8. 
  

 -6- 

 “Title Company” means Stewart Title Guaranty Company, Seattle, Washington. 

 “Title Documents” has the meaning ascribed to such term in Section 6.2(a). 
 “Title Objections” has the meaning ascribed to such term in Section 6.2(b).  
 “Title Policy” has the meaning ascribed to such term in Section 6.3. 
 “To Seller’s Knowledge” or other similar phrases means only matters actually within the current, actual knowledge with no duty of
due diligence or inquiry of Mark Thunberg and expressly excludes imputed knowledge. Such person has not undertaken or inquired into (having no duty to undertake or to inquire into) any independent investigation or verification of the matters set
forth in any representation or warranty, including without limitation an investigation or review of any documents, certificates, agreements or information that may be in, or may hereafter come into, the possession of Seller or any entity affiliated
in any manner with Seller. Purchaser acknowledges that the individual named above is named solely for the purpose of defining and narrowing the scope of Seller’s knowledge and not for the purpose of imposing any liability on or creating any
duties running from such individual to Purchaser. 
 Section 1.2 References; Exhibits and Schedules. Except as otherwise
specifically indicated, all references in this Agreement to Articles or Sections refer to Articles or Sections of this Agreement, and all references to Exhibits or Schedules refer to Exhibits or Schedules attached hereto, all of which Exhibits and
Schedules are incorporated into, and made a part of, this Agreement by reference. The words “herein,” “hereof,” “hereinafter” and words and phrases of similar import refer to this Agreement as a whole and not to any
particular Section or Article. 
 ARTICLE II. 
 AGREEMENT OF PURCHASE AND SALE 
 Section 2.1 Agreement. Seller hereby agrees to
sell, convey and assign to Purchaser, and Purchaser hereby agrees to purchase and accept from Seller, on the Closing Date and subject to the terms and conditions of this Agreement, all of the following (collectively, the
“Property”): 
 (a) the Real Property; 
 (b) the Improvements; 
 (c) the Personal Property; 
 (d) all of Seller’s interest under the Leases and the Licenses and Permits; 
 (e) to the extent assignable or transferable, all of Seller’s interest in all other intangible rights and other interests, privileges and
appurtenances related to and used exclusively in connection with the ownership of the Real Property or the Improvements, but expressly excluding Improvement names, Seller’s and Seller’s Affiliates’ trade names, trademarks and service
marks, telephone numbers, fax numbers and website and web addresses and all other proprietary rights related to the business of Seller or its Affiliates; and 
  

 -7- 

 (f) a copy of the Records and Plans, but only to the extent such Records and Plans are in Seller’s
Control. 
 Notwithstanding the foregoing, Seller shall have the right to exclude from the Improvements the George Tsutakawa Fountain
Sculpture (except the fountain pool basin and plumbing which have been incorporated into the building structure) and the Robert Sperry Ceramic Sculpture, provided that Seller removes such and repairs any damage that results from such removal at
Seller’s expense. Seller shall be responsible for obtaining all consents and approvals, if any, required from the artists and Authorities to remove these two sculptures from the Property. 
 Although not conveyed at Closing, Seller shall assign to Purchaser at the end of the term of the Safeco Lease all of Seller’s interest under any
then remaining assignable or transferable warranties related to any of the Property. 
 Section 2.2 Indivisible Economic
Package. Purchaser has no right to purchase, and Seller has no obligation to sell, less than all of the Property, it being the express agreement and understanding of Purchaser and Seller that, as a material inducement to Seller and Purchaser
to enter into this Agreement, Purchaser has agreed to purchase, and Seller has agreed to sell, all of the Property, subject to and in accordance with the terms and conditions hereof. 
 Section 2.3 Safeco Lease. At the Closing, Purchaser and Safeco shall execute and deliver the Safeco Lease. 
 ARTICLE III. 
 CONSIDERATION

 Section 3.1 Purchase Price. The purchase price for the Property (the “Purchase Price”) will be One
Hundred Thirty Million Dollars ($130,000,000) in lawful currency of the United States of America, payable as provided in Section 3.2. 
 Section 3.2 Method of Payment of Purchase Price. Not later than 3:00 p.m. local time in Seattle, Washington on the last business day preceding the Closing Date (the “Deposit Time”), Purchaser will deposit in
escrow with the Title Company the Purchase Price (subject to adjustments described in Section 10.5), together with all other costs and amounts to be paid by Purchaser at Closing pursuant to the terms of this Agreement, by Federal Reserve
wire transfer of immediately available funds to an account to be designated by the Title Company. On the Closing Date: (a) Purchaser will direct and instruct the Title Company to (i) pay to Seller by Federal Reserve wire transfer of
immediately available funds to an account to be designated by Seller, the Purchase Price (subject to adjustments described in Section 10.5), less any costs or other amounts to be paid by Seller at Closing pursuant to the terms of this
Agreement, and (ii) pay to all appropriate payees the other costs and amounts to be paid by Purchaser at Closing pursuant to the terms of this Agreement, and (iii) retain in escrow the Escrowed Funds provided for in
Section 10.10; and (b) Seller will cause the Title Company to pay to all appropriate payees, out of the proceeds of Closing payable to Seller, all costs and amounts to be paid by Seller at Closing pursuant to the terms of this
Agreement. 
  

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 ARTICLE IV. 
 EARNEST MONEY DEPOSIT AND ESCROW INSTRUCTIONS 
 Section 4.1 The Deposit. Within
two (2) Business Days after the Effective Date, Purchaser shall deposit cash in the amount of Five Million ($5,000,000) in escrow with Title Company. The cash deposited, together with any interest earned thereon, are referred to herein as the
“Earnest Money Deposit”, which will be held in escrow by the Title Company and disbursed pursuant to the terms of this Agreement. Failure to deposit the cash in payment thereof in accordance with the terms hereof shall result in the
termination of this Agreement. 
 Section 4.2 Escrow Instructions. Article IV constitutes the escrow instructions
to the Title Company with regard to the Earnest Money Deposit and the Closing (the “Escrow Instructions”). By its execution of the joinder attached hereto, the Title Company agrees to be bound by the provisions of this Article
IV. If any requirements relating to the duties or obligations of the Title Company hereunder are not acceptable to the Title Company, or if the Title Company requires additional instructions, the parties agree to make such deletions,
substitutions and additions to the Escrow Instructions as Purchaser and Seller hereafter mutually approve in writing, provided that neither party shall be obligated to make any such deletions, substitutions or additions that substantially alter this
Agreement or its intent. In the event of any conflict between this Agreement and such additional escrow instructions, this Agreement will control. 
 Section 4.3 Documents Deposited into Escrow. On or before the date that is one (1) business day prior to the Closing Date, Purchaser will deliver in escrow to the Title Company the funds and documents described and
provided for in Section 10.3 below and (c) Seller will deliver in escrow to the Title Company the documents described and provided for in Section 10.4 below. 
 Section 4.4 Close of Escrow. On the Closing Date, when Purchaser and Seller have delivered the documents required by
Section 4.3, the Title Company will: 
 (a) If applicable and when required, file with the Internal Revenue Service (with copies
to Purchaser and Seller) the reporting statement required under Section 6045(e) of the Internal Revenue Code of 1986 (the “Code”) and Section 4.7; 
 (b) Insert the applicable Closing Date as the date of any document delivered to the Title Company undated, and assemble counterparts into single
instruments; 
 (c) Deliver the Deed to Purchaser by causing same to be recorded in the Official Records by no later than noon on the Closing
Date; 
 (d) Immediately after the confirmation of the recording of the Deed and quitclaim deed described in (e) below, disburse to
Seller, by wire transfer to Seller of immediately available federal funds in accordance with wiring instructions to be obtained by the Title Company from Seller, all sums to be received by Seller from Purchaser at the Closing, 
  

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 comprised of the Purchase Price as adjusted in accordance with the provisions of this Agreement, less all amounts paid by
the Title Company in satisfaction of any liens or encumbrances on the Real Property pursuant to the written instructions of Seller or Seller’s counsel, and less all costs and amounts to be paid by Seller at Closing pursuant to the terms of this
Agreement; 
 (e) Deliver the quitclaim deed to Purchaser by causing same to be recorded in the Official Records by no later than noon on the
Closing Date; 
 (f) Issue to Purchaser the Title Policy required by Section 6.3 of this Agreement; 
 (g) Deliver to Seller all documents deposited with the Title Company for delivery to Seller at the Closing; and 
 (h) Deliver to Purchaser (i) all documents deposited with the Title Company for delivery to Purchaser at the Closing and (ii) any funds
deposited by Purchaser in excess of the amount required to be paid by Purchaser pursuant to this Agreement. 
 Section 4.5
Maintenance of Confidentiality by Title Company. Except as may otherwise be required by law or by this Agreement, the Title Company will maintain in strict confidence and not disclose to anyone the existence of this Agreement, the
identity of the parties hereto, the amount of the Purchase Price, the provisions of this Agreement or any other information concerning the transactions contemplated hereby, without the prior written consent of Purchaser and Seller (which may be
withheld in either party’s sole and absolute discretion). 
 Section 4.6 Investment of Earnest Money Deposit. When
cash has been deposited with the Title Company, the Title Company will invest and reinvest the Earnest Money Deposit, at the instruction and sole election of Purchaser, only in (a) bonds, notes, Treasury bills or other securities constituting
direct obligations of, or guaranteed by the full faith and credit of, the United States of America, and in no event maturing beyond Closing Date, or (b) an interest-bearing account at a commercial bank acceptable to Seller, Purchaser and the
Title Company. The investment of the Earnest Money Deposit will be at the sole risk of Purchaser and no loss on any investment will relieve Purchaser of its obligations to pay to Seller as liquidated damages the amount of the Earnest Money Deposit
as provided in Section 13.2, or of its obligation to pay the Purchase Price. All interest earned on the Earnest Money Deposit will be the property of Purchaser and will be reported to the Internal Revenue Service as income. Purchaser
will provide the Title Company with a taxpayer identification number and will pay all income taxes due by reason of interest accrual on the Earnest Money Deposit. 
 Section 4.7 Designation of Reporting Person. The Title Company shall comply with all applicable federal, state and local reporting and withholding requirements relating to the close of the
transactions contemplated herein. Without limiting the foregoing, pursuant to Section 6045 of the Code, Title Company shall be designated the “closing agent” hereunder and shall be solely responsible for complying with the Tax Reform
Act of 1986 with regard to reporting all settlement information to the Internal Revenue Service. 
  

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 ARTICLE V. 
 INSPECTION OF PROPERTY 
 Section 5.1 Entry and Inspection. 
 (a) Seller will permit Purchaser and its employees and authorized agents, representatives, contractors and consultants (the “Licensee
Parties”) to enter upon the Real Property at all reasonable times during normal business hours to perform any inspections, investigations, studies, tests, evaluations and assessments of the Property (including, but not limited to,
physical, structural, mechanical, architectural, engineering, soils, geotechnical, and environmental /asbestos tests (generally, “Inspections”) as Purchaser deems necessary, appropriate or prudent in any respect and for all
purposes in connection with Purchaser’s acquisition of the Property and the consummation of the transaction contemplated by this Agreement. Purchaser shall notify Seller of the intention of Purchaser or any Licensee Party to enter the Real
Property at least two (2) business days prior to such intended entry and specify the intended purpose therefor and the Inspections contemplated to be made and/or the service provider, Authorities, or any other person with whom Purchaser or any
Licensee Party contemplates communicating. At Seller’s option, Seller or its employees or authorized agents, representatives, contractors or consultants (the “Seller Representatives”) may be present for any such entry or
Inspection. With respect to any Inspection that will require excavations, borings, drilling, removal or demolition of any portion of the Property, or any other invasive activities on the Property (generally, “Invasive
Testing”), Purchaser shall submit to Seller a written plan describing such Invasive Testing in reasonable detail (an “Invasive Testing Plan”) for Seller’s written approval, which approval may not be
unreasonably withheld or delayed. Purchaser may not proceed with any Invasive Testing unless Seller has expressly approved in writing the relevant Invasive Testing Plan, and Purchaser shall conduct all Invasive Testing in compliance with the
Invasive Testing Plan approved by Seller. Seller shall have the right to have a Seller Representative observe any testing activities and to request and receive split samples of any materials collected for analysis by Purchaser or any Licensee Party;
provided, however, that Purchaser’s sole responsibility shall be to notify Seller when Purchaser’s testing activities will be taking place, and Seller shall be solely responsible for causing a Seller Representative to be
present to observe and/or to request and receive split material samples. Purchaser or any Licensee Party shall repair any damage to the Property caused by any such Invasive Testing promptly after any Invasive Testing, but in no event later than five
(5) days after any disturbance or damage occurs. 
 (b) Subject to the obligations set forth in Section 5.3 below, the
Licensee Parties shall have the right to communicate directly with Authorities for any good faith reasonable purpose in connection with the transaction contemplated by this Agreement; provided, however, Purchaser shall provide Seller
notice at least two (2) business days prior to Purchaser communicating with any Authorities regarding the Property and Seller shall have the right to participate in any such communications. 
  

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 Section 5.2 Document Review. 
 (a) Purchaser expressly acknowledges and confirms that (subject to Section 5.1 and this Section 5.2), Purchaser and the Licensee
Parties shall have the right to review, inspect, examine, analyze, verify and photocopy, at either the office of Seller, Seller’s property manager or at the Real Property, all agreements, contracts, documents, information, reports, books,
records and other materials pertinent to the use, ownership, occupancy, or operation of the Property, except those excluded from the definition of Records and Plans, that are in Seller’s Control (collectively, the
“Documents”), including, but not limited to, the following: (i) assessments (special or otherwise) and ad valorem and personal property tax bills, covering the period of Seller’s ownership of the Property;
(ii) copies of the Service Contracts, the Leases, the Licenses and Permits, and the Records and Plans; and (iii) current inventories of the Personal Property. 
 (b) Purchaser acknowledges that information contained in any and all of the Documents may be proprietary and confidential in nature (“Confidential Information”) and that the Documents have been
provided to Purchaser solely to assist Purchaser in determining the feasibility of purchasing the Property. Subject only to the provisions of Article XII, Purchaser agrees not to disclose any Confidential Information to any party outside of
Purchaser’s organization other than its attorneys, partners, accountants, lenders, investors, or any Licensee Parties who need to know such Confidential Information for the purpose of giving advice to Purchaser with respect to the transactions
contemplated by this Agreement (collectively, the “Permitted Outside Parties”). Purchaser further agrees that within its organization, or as to the Permitted Outside Parties, the Confidential Information will be disclosed and
exhibited only to those persons within Purchaser’s organization or to those Permitted Outside Parties who are responsible for determining the feasibility of Purchaser’s acquisition of the Property. Purchaser agrees not to divulge any
Confidential Information except in strict accordance with the confidentiality standards set forth in this Section 5.2 and Article XII. In permitting Purchaser and the Permitted Outside Parties to review the Confidential
Information to assist Purchaser, Seller has not waived any privilege or claim of confidentiality with respect thereto, and no third party benefits or relationships of any kind, either express or implied, have been offered, intended or created by
Seller and any such claims are expressly rejected by Seller and waived by Purchaser and the Permitted Outside Parties, for whom, by its execution of this Agreement, Purchaser is acting as an agent with regard to such waiver. Notwithstanding any of
the foregoing, Confidential Information shall not include (i) information that is obtained by Purchaser from a third person who is not prohibited from transmitting the information to Purchaser, (ii) information that is available to the
general public, or (iii) information that is independently developed by Purchaser without reliance on any Confidential information, as shown by written records. This Section 5.2(b) shall survive any termination of this Agreement but
shall not survive the Closing. 
 (c) Purchaser will use commercially reasonable efforts to return to Seller all copies Purchaser has made of
the Documents and all copies of any studies, reports or test results regarding any part of the Property obtained by Purchaser, before or after the execution of this Agreement, in connection with Purchaser’s inspection of the Property, excluding
(i) any proprietary documents or information (such as internally prepared valuations, projections or 
  

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 budgets or other analyses of the Property) and (ii) any attorney-client communications or other information which
Purchaser is contractually or otherwise legally bound to a third party to keep confidential (collectively, “Purchaser’s Information”) not later than five (5) Business Days following the time this Agreement is
terminated for any reason. Any obligation to return Purchaser’s Information shall be subject to any legal requirement by which Purchaser may be bound to retain file copies and shall not require the return of any internal analysis of the
Documents; provided, however, that to the extent such analysis reflects any Confidential Information, Purchaser will not divulge any such analysis except in strict accordance with the confidentiality standards set forth in this
Section 5.2 and Article XII. 
 (d) Purchaser acknowledges that some of the Documents may have been prepared by third
parties and may have been prepared prior to Seller’s ownership of the Property. Purchaser hereby acknowledges that, except as expressly provided in Section 8.1 below, Seller has not made and does not make any representation or
warranty regarding the truth, accuracy or completeness of the Documents or the sources thereof, Seller has not undertaken any independent investigation as to the truth, accuracy or completeness of the Documents, and Seller is providing the Documents
solely as an accommodation to Purchaser. 
 (e) Notwithstanding any provision of this Agreement to the contrary, no termination of this
Agreement will terminate Purchaser’s obligations pursuant to this Section 5.2. 
 (f) Purchaser is a public institution of higher
education and an agency of the state of Washington, subject to state and federal public disclosure and public meeting laws, and confidentiality under this Section 5.2 and Article XII shall apply only to the extent permitted by
law. 
 Section 5.3 Entry and Inspection Obligations. 
 (a) Purchaser agrees that in entering upon the Property and conducting any Inspections, Purchaser and the other Licensee Parties will not:
(i) unreasonably disturb the Occupants or unreasonably interfere with their use of the Property; (ii) unreasonably or materially interfere with the operation and maintenance of the Real Property or Improvements; (iii) damage any part
of the Property or any personal property owned or held by any Occupant or any other person or entity (except for such damage incident to Invasive Testing that is repaired by Purchaser as provided in Section 5.1 (a)); (iv) injure or
otherwise cause bodily harm to Seller or any Occupant, or to any of their respective agents, guests, invitees, contractors and employees, or to any other person or entity; (v) permit any liens to attach to the Real Property by reason of the
exercise of Purchaser’s rights under this Article V; (vi) communicate with any Occupants, Authorities, or service providers without prior written notice as provided in this Article V; or (vii) reveal or disclose any
Confidential Information concerning the Property and the Documents to anyone outside Purchaser’s organization, except in accordance with the confidentiality standards set forth in Section 5.2(b) and Article XII. Purchaser
will: (x) maintain commercial general liability insurance or self insurance in an amount not less than $5,000,000 covering any accident arising in connection with the presence of Purchaser or the other Licensee Parties on the Real Property or
the Improvements, and deliver a certificate of insurance verifying such coverage to Seller prior to entry upon the Real Property or Improvements; (y) promptly pay 
  

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 when due the costs of all entry and Inspections done with regard to the Property; and (z) promptly repair any damage
to the Real Property and Improvements caused by any such entry upon the Real Property. 
 (b) Purchaser hereby indemnifies, defends and holds
Seller and its partners, agents, employees, lenders, successors and assigns harmless from and against any and all liens, claims, causes of action, damages, liabilities, demands, suits, obligations to third parties, together with all losses,
penalties, fines, costs and expenses relating to any of the foregoing (including but not limited to court costs and reasonable attorneys’ fees) (generally, “Claims”) arising out of any inspections, investigations,
examinations, sampling or tests conducted by Purchaser or any Licensee Party, whether prior to or after the date hereof, or as a result of any violation of the provisions of this Section 5.3; provided, however, that
Purchaser’s indemnity hereunder shall not include any Claims resulting from the discovery, investigation or clean-up of pre-existing conditions at the Property except to the extent such condition is aggravated by an act of Purchaser or any
Licensee Party as a result of the Inspections. 
 (c) Notwithstanding any provision of this Agreement to the contrary, neither the Closing
nor a termination of this Agreement will terminate Purchaser’s obligations pursuant to this Section 5.3. 
 Section 5.4
Sale “As Is”. THE TRANSACTION CONTEMPLATED BY THIS AGREEMENT HAS BEEN NEGOTIATED BETWEEN SELLER AND PURCHASER, THIS AGREEMENT REFLECTS THE MUTUAL AGREEMENT OF SELLER AND PURCHASER, AND PURCHASER HAS CONDUCTED ITS OWN INDEPENDENT
EXAMINATION OF THE PROPERTY. OTHER THAN THE MATTERS REPRESENTED IN SECTION 8.1 HEREOF OR THE DOCUMENTS DELIVERED BY SELLER AT CLOSING, BY WHICH ALL OF THE FOLLOWING PROVISIONS OF THIS SECTION 5.4 ARE LIMITED, PURCHASER HAS NOT RELIED
UPON AND WILL NOT RELY UPON, EITHER DIRECTLY OR INDIRECTLY, ANY REPRESENTATION OR WARRANTY OF SELLER OR ANY OF SELLER’S AGENTS OR REPRESENTATIVES. SELLER SPECIFICALLY DISCLAIMS ANY REPRESENTATION, WARRANTY OR ASSURANCE WHATSOEVER TO PURCHASER
AND NO WARRANTIES OR REPRESENTATIONS OF ANY KIND OR CHARACTER, EITHER EXPRESS OR IMPLIED, MAY BE RELIED UPON BY PURCHASER WITH RESPECT TO THE STATUS OF TITLE TO OR THE MAINTENANCE, REPAIR, CONDITION, DESIGN OR MARKETABILITY OF ANY PORTION OF THE
PROPERTY, INCLUDING BUT NOT LIMITED TO (a) ANY IMPLIED OR EXPRESS WARRANTY OF MERCHANTABILITY, (b) ANY IMPLIED OR EXPRESS WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE, (c) ANY IMPLIED OR EXPRESS WARRANTY OF CONFORMITY TO MODELS OR
SAMPLES OF MATERIALS, (d) THE FINANCIAL CONDITION OR PROSPECTS OF THE PROPERTY AND (e) THE COMPLIANCE OR LACK THEREOF OF THE REAL PROPERTY OR THE IMPROVEMENTS WITH GOVERNMENTAL REGULATIONS, IT BEING THE EXPRESS INTENTION OF SELLER AND
PURCHASER THAT, EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT OR THE DOCUMENTS DELIVERED BY SELLER AT CLOSING, THE PROPERTY WILL BE CONVEYED AND TRANSFERRED TO PURCHASER IN ITS PRESENT CONDITION AND STATE OF REPAIR, “AS IS” AND

  

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 “WHERE IS”, WITH ALL FAULTS. PURCHASER REPRESENTS THAT IT IS A KNOWLEDGEABLE, EXPERIENCED AND SOPHISTICATED
PURCHASER OF REAL ESTATE, AND THAT IT IS RELYING SOLELY ON ITS OWN EXPERTISE AND THAT OF PURCHASER’S CONSULTANTS IN PURCHASING THE PROPERTY. PURCHASER HAS CONDUCTED SUCH INDEPENDENT INSPECTIONS OF THE PROPERTY AND RELATED MATTERS AS PURCHASER
DEEMS NECESSARY, INCLUDING, BUT NOT LIMITED TO, THE PHYSICAL AND ENVIRONMENTAL CONDITIONS THEREOF, AND WILL RELY UPON SAME AND NOT UPON ANY STATEMENTS OF SELLER (EXCLUDING THE LIMITED MATTERS REPRESENTED BY SELLER IN SECTION 8.1 HEREOF OR THE
DOCUMENTS DELIVERED BY SELLER AT CLOSING) OR OF ANY OFFICER, DIRECTOR, EMPLOYEE, AGENT OR ATTORNEY OF SELLER. PURCHASER ACKNOWLEDGES THAT ALL INFORMATION OBTAINED OR THAT WILL BE OBTAINED BY PURCHASER WAS OR WILL BE OBTAINED FROM A VARIETY OF
SOURCES AND SELLER WILL NOT BE DEEMED TO HAVE REPRESENTED OR WARRANTED THE COMPLETENESS, TRUTH OR ACCURACY OF ANY OF THE DOCUMENTS OR OTHER SUCH INFORMATION HERETOFORE OR HEREAFTER FURNISHED TO PURCHASER THAT WAS CREATED, PREPARED, COMPILED, OR
AUTHORED BY ANY PERSON OR ENTITY OTHER THAN SELLER OR ANY OF ITS AFFILIATES. EXCEPT AS MAY BE EXPRESSLY PROVIDED OTHERWISE IN THIS AGREEMENT OR THE DOCUMENTS DELIVERED BY SELLER AT CLOSING, UPON CLOSING, PURCHASER WILL ASSUME THE RISK THAT ADVERSE
MATTERS, INCLUDING, BUT NOT LIMITED TO, ADVERSE PHYSICAL AND ENVIRONMENTAL CONDITIONS, MAY NOT HAVE BEEN REVEALED BY PURCHASER’S INSPECTIONS AND SELLER WILL SELL AND CONVEY TO PURCHASER, AND PURCHASER WILL ACCEPT THE PROPERTY, “AS IS,
WHERE IS,” WITH ALL FAULTS. PURCHASER FURTHER ACKNOWLEDGES AND AGREES THAT SELLER IS NOT LIABLE OR BOUND IN ANY MANNER BY ANY ORAL OR WRITTEN STATEMENTS, REPRESENTATIONS OR INFORMATION PERTAINING TO THE PROPERTY FURNISHED BY ANY REAL ESTATE
BROKER, AGENT, EMPLOYEE, SERVANT OR OTHER PERSON, UNLESS THE SAME ARE SPECIFICALLY SET FORTH OR REFERRED TO HEREIN. PURCHASER, WITH PURCHASER’S COUNSEL, HAS FULLY REVIEWED THE DISCLAIMERS AND WAIVERS SET FORTH IN THIS AGREEMENT, AND UNDERSTANDS
THE SIGNIFICANCE AND EFFECT THEREOF. PURCHASER ACKNOWLEDGES AND AGREES THAT THE DISCLAIMERS AND OTHER AGREEMENTS SET FORTH HEREIN ARE AN INTEGRAL PART OF THIS AGREEMENT. THE TERMS AND CONDITIONS OF THIS SECTION 5.4 WILL EXPRESSLY SURVIVE THE
CLOSING, WILL NOT MERGE WITH THE PROVISIONS OF ANY CLOSING DOCUMENTS AND WILL BE INCORPORATED INTO THE DEEDS. 
  

	
	 

  

	Purchaser’s Initials

 Section 5.5 MATERIAL DEFECTS. PURCHASER, ON BEHALF OF ITSELF, ITS SUCCESSORS
AND ASSIGNS, HEREBY RELEASES THE SELLER AND ITS AFFILIATES, OFFICERS, DIRECTORS, MEMBERS, EMPLOYEES, CONTRACTORS, 
  

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 AGENTS, INVESTMENT ADVISORS AND THEIR RESPECTIVE SUCCESSORS AND ASSIGNS (COLLECTIVELY “RELEASED SELLER
ENTITIES”) FROM AND AGAINST ANY AND ALL CLAIMS KNOWN OR UNKNOWN, ARISING OUT OF, OR RELATED IN ANY WAY TO THE CONDITION OF THE PROPERTY, THE CONDITION OF THE STRUCTURE OF THE IMPROVEMENTS OR ANY EQUIPMENT, SYSTEMS AND APPLIANCES RELATED
THERETO, INCLUDING ANY HEATING, VENTILATION, PLUMBING, ELECTRICAL AND AIR CONDITIONING SYSTEMS, WIRING, TELECOMMUNICATIONS SYSTEMS, PAVING, ROOFING AND OTHER SUCH ASPECTS OF THE PROPERTY, (INCLUDING WITHOUT LIMITATION ANY LIABILITY OF RELEASED
SELLER ENTITIES FOR LATENT DEFECTS). THE FOREGOING SHALL NOT APPLY TO ANY CLAIMS BASED ON A BREACH OF THE REPRESENTATIONS AND WARRANTIES CONTAINED IN SECTION 8.1 OR THE DOCUMENTS DELIVERED BY SELLER AT CLOSING. THE PROVISIONS OF THIS
SECTION 5.5 SHALL SURVIVE INDEFINITELY ANY CLOSING OR TERMINATION OF THIS AGREEMENT AND SHALL NOT BE MERGED INTO THE CLOSING DOCUMENTS. 
  

	
	 

  

	Purchaser’s Initials

 SECTION 5.6 HAZARDOUS SUBSTANCES WAIVER. EXCEPT WITH REGARD TO ANY LIABILITY ON THE
PART OF SELLER FOR BREACH OF SELLER’S REPRESENTATIONS AND WARRANTIES SET FORTH IN SECTION 8.1 OF THIS AGREEMENT OR THE DOCUMENTS DELIVERED BY SELLER AT CLOSING, PURCHASER, ON BEHALF OF ITSELF, ITS SUCCESSORS AND ASSIGNS, HEREBY RELEASES
THE RELEASED SELLER ENTITIES FROM AND AGAINST ANY AND ALL CLAIMS KNOWN OR UNKNOWN, ARISING OUT OF, RELATED IN ANY WAY TO THE PRESENCE, MISUSE, USE, DISPOSAL, RELEASE OR THREATENED RELEASE OF ANY HAZARDOUS SUBSTANCES AT THE PROPERTY AND ANY LIABILITY
OR CLAIM RELATED TO THE PROPERTY ARISING UNDER ANY ENVIRONMENTAL LAWS. PURCHASER ACKNOWLEDGES THAT UNKNOWN AND UNSUSPECTED HAZARDOUS SUBSTANCES MAY HEREAFTER BE DISCOVERED ON OR ABOUT THE PROPERTY, AND PURCHASER KNOWINGLY RELEASES SELLER FROM ANY
AND ALL LIABILITY RELATED THERETO AND WAIVES ALL RIGHTS OF INDEMNITY AND CONTRIBUTION RELATED THERETO. THE PROVISIONS OF THIS SECTION 5.6 SHALL SURVIVE INDEFINITELY ANY CLOSING OR TERMINATION OF THIS AGREEMENT AND SHALL NOT BE MERGED INTO THE
CLOSING DOCUMENTS. 
  

	
	 

  

	Purchaser’s Initials

  

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 ARTICLE VI. 
 TITLE AND SURVEY MATTERS 
 Section 6.1 Survey. Seller has delivered to Purchaser a
copy of surveys of the Real Property prepared by W&H Pacific which shall be certified in favor of Purchaser prior to Closing. 
 Section 6.2 Title Commitment. 
 (a) The Title Company has furnished to Purchaser and Seller a fourth preliminary
commitment number 206136002, dated August 22, 2006 (the “Commitment”) for an owner’s policy of title insurance in ALTA form, together with legible copies of all documents referenced as exceptions therein (the
“Title Documents”). 
 (b) Purchaser has reviewed the Survey, the Commitment and the Title Documents and has approved
the status of title to the Real Property as referenced therein, subject only to Seller’s obligation to remove at or prior to Closing the special exceptions identified in Exhibit K. 
 (c) Any liens, encumbrances, easements, restrictions, conditions, covenants, rights of way and other matters affecting title to the Real Property which
are created by Seller after the Effective Date without the prior written consent of Purchaser or which may be disclosed by a supplemental to the Commitment after the date of the Commitment, but before the Closing Date (collectively, the
“Intervening Liens”) shall also be subject to Purchaser’s approval, and Purchaser shall have three (3) days after notice in writing of any Intervening Lien and a copy of the instrument creating or evidencing the
Intervening Lien, if any, to submit written objections thereto or to give Seller notice of acceptance thereof, and the Closing Date shall be extended as required to afford Purchaser such three (3) day period within which to review such
Intervening Lien and determine its acceptability. If Purchaser fails to notify Seller within such time period, Purchaser shall be deemed to have approved such Intervening lien. Seller shall notify Purchaser in writing within three (3) days
after receipt of Purchaser’s objection notice that (i) Seller will remove such Intervening Liens and provide evidence to Purchaser of such removal on or before Closing, or (ii) Seller elects not to remove such exceptions. If Seller
elects not to remove Intervening Liens and if Purchaser is unwilling to accept title subject to such Intervening Liens, Purchaser shall have one (1) business day after receipt of Seller’s notice to terminate this Agreement by written
notice to Seller whereupon the Title Company shall return the Earnest Money Deposit (together with interest and accrued thereon) to Purchaser, the parties shall equally share any Cancellation Charges and this Agreement shall terminate and be of no
further force or effect except for the Termination Surviving Obligations. In the event Purchaser does not elect to terminate this Agreement within the time period set forth above, Purchaser shall be deemed to have waived such Intervening Liens, such
Intervening Liens shall be deemed additional Permitted Exceptions and the Closing shall occur on the terms and conditions set forth in this Agreement. 
 (d) Notwithstanding anything to the contrary contained in this Agreement, Seller shall remove any liens, mortgages, deeds of trust or other monetary liens and encumbrances arising by or through Seller prior to Closing
and shall pay all taxes and assessments due and payable for any period of time prior to the Closing . 
  

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 Section 6.3 Title Insurance. Purchaser has obtained the Title Company’s
irrevocable commitment to issue to Purchaser at Closing an ALTA Extended Coverage Owner’s Policy of Title Insurance in the amount of the Purchase Price, insuring fee simple title to the Real Property and the Improvements is vested in Purchaser
in the form of, and with the endorsements contained in, the Commitment, subject only to the Permitted Exceptions (the “Title Policy”). Purchaser, at Purchaser’s expense, shall be entitled to request that the Title
Company provide such endorsements to the Title Policy or obtain reinsurance of the Title Policy in such amounts as Purchaser may require, provided that the Closing shall not be delayed as a result of Purchaser’s request for such endorsements or
reinsurance. 
 ARTICLE VII. 
 INTERIM OPERATING COVENANTS 
 Section 7.1 Interim Operating Covenants. Seller covenants to Purchaser that
Seller will: 
 (a) Operations. From the Effective Date until Closing, continue to operate, manage and maintain the Improvements in the
ordinary course of Seller’s business and substantially in accordance with Seller’s practice as of the Effective Date, subject to ordinary wear and tear and further subject to Article IX of this Agreement. 
 (b) Maintain Insurance. From the Effective Date until Closing, maintain fire and extended coverage insurance on the Property in the amount of the
full replacement cost thereof that is at least equivalent in all material respects to the insurance policies covering the Real Property and the Improvements as of the Effective Date. 
 (c) Title. From the Effective Date until Closing, Seller will not knowingly (i) take any action that will adversely affect title to or development
of the Property, or (ii) mortgage, encumber or permit the encumbrance of all or any portion of the Property (unless such mortgage or encumbrance will be discharged from the Purchase Price at Closing) or (iii) grant, consent or acquiesce in the
creation of any easement, license, contract or other agreement that would constitute an Intervening Lien without the prior written consent of Purchaser. Seller further agrees not to enter into any new leases or any amendments, expansions or renewals
of any lease, and not accept any rent from any tenant for more than one (1) month in advance of its due date without the prior written consent of Purchaser, which consent will be deemed given unless written objection thereto is given within
five (5) Business Days after receipt of the relevant written information. Purchaser’s consent may be withheld in Purchaser’s sole and absolute discretion. 
 (d) Service Contracts. From the Effective Date until Closing, not enter into any service agreement, maintenance contract, equipment leasing agreement, or other contract for the provision of labor, services,
materials or supplies, unless such agreement or contract is terminable on not more than thirty (30) days notice without penalty or unless Purchaser consents thereto in writing, which consent will not be unreasonably withheld, delayed or
conditioned. 
  

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 (e) Personal Property. From the Effective Date until Closing, not transfer or remove any Personal
Property from the Improvements except for the purpose of repair or replacement thereof, provided, that such repair or replacement is completed at Seller’s cost prior to the Closing and any Personal Property so replaced is replaced with such
Personal Property of a like kind and at least equal value to the Personal Property replaced. 
 (f) Notices. To the extent received by
Seller, from the Effective Date until Closing, promptly deliver to Purchaser copies of written default notices, notices of lawsuits and notices of violations of Governmental Regulations affecting the Property. 
 (g) Comply with Governmental Regulations. From the Effective Date until Closing, not take any action that Seller knows would result in a failure
to comply in any material respects with all Governmental Regulations applicable to the Property, it being understood and agreed, however, that prior to Closing, (i) Seller will have the right to contest any such Governmental Regulations, and
(ii) Seller shall have no obligation to make any improvements or complete any modifications to the Real Property or Improvements to effect compliance with any Governmental Regulations. 
 ARTICLE VIII. 
 REPRESENTATIONS AND WARRANTIES 
 Section 8.1 Seller’s Representations and Warranties. The following constitute the sole representations and warranties of Seller.
Subject to the limitations set forth in Article XVI of this Agreement, Seller represents and warrants to Purchaser the following as of the Effective Date and again as of the Closing Date, subject to the terms of the concluding paragraph of
this Section 8.1: 
 (a) Due Formation and Authorization. Seller is duly organized and validly existing under the laws of the
state of its formation and has all requisite power, authority and legal right to execute, deliver and perform the terms of this Agreement. This Agreement has been duly authorized by all necessary action on Seller’s part and constitutes valid
and legally binding obligations of Seller enforceable in accordance with their respective terms. 
 (b) Consent. No consent, approval
or authorization by any individual or entity or any court, administrative agency or other governmental authority is required in connection with the execution and delivery of this Agreement or the consummation of the transactions contemplated by this
Agreement by Seller other than those consents, approvals and authorizations which shall be obtained by Seller prior to Closing. The consummation of the transactions contemplated by this Agreement will not result in a breach of, or constitute a
default under, any mortgage, deed of trust, bank loan, credit agreement or other instrument to which Seller is a party or by which Seller may be bound or affected. 
 (c) Suits and Proceedings. To Seller’s Knowledge and except as listed in Exhibit E, there are no legal actions, suits, or similar proceedings pending, or threatened, against Seller or the
Property. 
  

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 (d) Leases. Attached as Exhibit C hereto is, to Seller’s Knowledge, a complete
list of all leases and occupancy agreements affecting the Property. Except as disclosed in Exhibit C (except for leases between Seller or Affiliates of Seller which will be terminated as of Closing), no other party has the right to
occupy any portion of the Property other than licensees of Seller or its Affiliates. Except for the right of first refusal contained in the I-HOP Lease, none of the tenants under the other Leases has a right of first refusal or option to purchase
all or any portion of the Property. 
 (e) Service Contracts. Attached as Exhibit D is, to Seller’s Knowledge, a
complete and accurate schedule of all Service Contracts affecting the Property to which Seller is a party or by which it or the Property is bound as of the date hereof. Purchaser will not assume the Service Contracts at Closing that Seller has
entered into and which set forth the standards it has established for its business operations, but Seller shall maintain them in effect for its account during the term of the Safeco Lease. 
 (f) No Violations. Seller has not received any written notification from an Authority that the Property is (and Seller has no Knowledge that the
Property is) in material violation of any applicable fire, health, building, use, occupancy or zoning laws or any other Governmental Regulation. 
 (g) Insolvency. No attachments, execution proceedings, assignments for the benefit of creditors, insolvency, or other similar proceedings are pending and served, or, to Seller’s Knowledge, threatened, against Seller or the
Property. 
 (h) Environmental. Except as shown in any environmental reports covering the Real Property and Improvements and any other
Documents delivered or otherwise made available to Purchaser pursuant to Section 5.2(a), to Seller’s Knowledge, Seller has not received prior to the Effective Date written notice from any Authorities or other person indicating that
the Real Property or any Improvements are in violation of any Environmental Law. 
 (i) Bankruptcy. Seller has not made a general
assignment for the benefit of creditors nor been adjudicated a bankrupt or insolvent, nor has a receiver, liquidator, or trustee for any of Seller’s properties (including the Property) been appointed or a petition filed by or against Seller for
bankruptcy, reorganization, or arrangement pursuant to the Federal Bankruptcy Act or any similar Federal or state statute, or any proceeding instituted for the dissolution or liquidation of Seller. 
 (j) Condemnation. To Seller’s Knowledge, no condemnation or other taking by eminent domain of the Property or any portion thereof has been
instituted affecting the Property or any portion thereof or its use. Seller has not entered into any letter of understanding, easement, license, lease, contract, agreement, oral or written, with Sound Transit regarding investigation or location of
any light rail station entrance, exit, equipment, or other transit facilities on all or any portion of the Property. Section 9.3 hereof shall govern the parties rights and remedies in the event any condemnation or eminent domain
proceedings are instituted after the Effective Date. 
  

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 (k) Insurance. To Seller’s Knowledge, Seller has not received from any insurance company or
any board of fire underwriters any letter of non-insurance citing a non-insurable condition at the Property which has not been remedied. 
 If prior to
Closing either party to this Agreement comes to have actual knowledge of a fact or circumstance, that would render a representation or warranty by Seller herein inaccurate in any material respect, when made, that party shall promptly advise the
other party thereof in writing. Upon receiving or giving such notification, Seller shall have the right take such action as shall be necessary in order to correct the representation or warranty that was incorrect. If Seller fails to notify Purchaser
within ten (10) days after receiving Purchaser’s notice or giving Purchaser such notice that Seller intends to take such action, then Purchaser’s sole remedy shall be to terminate this Agreement by notice to Seller given within five
(5) Business Days after the expiration of such ten (10) day period, in which case Purchaser shall be entitled to the return of the Earnest Money Deposit; otherwise, Purchaser shall be deemed to have waived any right to terminate this
Agreement or to recover from Seller on account of such incorrectness. 
 Section 8.2 Purchaser’s Representations and
Warranties. Purchaser represents and warrants to Seller the following: 
 (a) Due Formation and Authorization. Purchaser is
duly organized and validly existing under the laws of the state of its formation and is qualified to do business in the State of Washington and has all requisite power, authority and legal right to execute, deliver and perform the terms of this
Agreement. This Agreement constitutes valid and legally binding obligations of Purchaser enforceable in accordance with their respective terms. 
 (b) Non-Contravention. The execution and delivery of this Agreement and all other documents to be delivered prior to or at the Closing by Purchaser and the consummation by Purchaser of the transactions contemplated hereby and thereby
will not violate any Governmental Regulations or any judgment, order, injunction, decree, regulation or ruling of any court or Authority or conflict with, result in a breach of, or constitute a default under the organic documents of Purchaser, any
note or other evidence of indebtedness, any mortgage, deed of trust or indenture, or any lease or other material agreement or instrument to which Purchaser is a party or by which it is bound. 
 (c) Consents. No consent, waiver, approval or authorization is required from any person or entity (that has not already been obtained) in
connection with the execution and delivery of this Agreement by Purchaser or the performance by Purchaser of the transactions contemplated hereby. 
 Section 8.3 Patriot Act. At all times prior to Closing contemplated by this Agreement, neither Seller, Purchaser nor any of their respective Affiliates shall be a Prohibited Person described in United States Presidential
Executive Order 13224 (“Executive Order”) and the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (“Patriot Act”).
The term “Prohibited Person” shall mean (a) a person or entity that commits, threatens or conspires to commit or supports “terrorism” as defined in the Executive Order; (b) a person or
entity that is named as a “specially designated 
  

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 national and blocked person” on the most current list (“List”} published by the U.S.
Department of the Treasury, Office of Foreign Assets Control at its official website (www.ustreas.gov/ofac) or at any replacement website or other replacement official publication of such List; or (c) a person or entity who is an
Affiliate of a person or entity listed above in this Section 8.3. For purposes of this Section 8.3, Affiliates do not include persons who are employed by either Seller or Purchaser. 
 ARTICLE IX. 
 CONDEMNATION AND
CASUALTY 
 Section 9.1 Significant Casualty. If, prior to the Closing Date, all or a Significant Portion of the Real
Property and Improvements are destroyed or damaged by fire or other casualty, Seller shall promptly notify Purchaser thereof. Purchaser will have five (5) business days from the receipt of such written notice to elect either: (x) to
proceed with this transaction and Closing in accordance with this Agreement notwithstanding such damage or destruction, in which event Seller will have no obligation to repair such damage or destruction, and the Closing shall occur as otherwise
provided in this Agreement; in such case, Seller shall assign to Purchaser upon the Closing all insurance proceeds paid or payable to Seller in connection with such occurrences, other than proceeds expended prior to Closing in restoration and repair
undertaken by Seller in its reasonable discretion and any proceeds of business interruption or rent continuation insurance applicable to the period prior to Closing, and Purchaser shall receive a credit against the Purchase Price equal to the amount
of any deductible under Seller’s insurance applicable to such occurrences; or (y) to terminate this Agreement. Purchaser’s failure to deliver either of such notices to Seller within such five (5) business day period shall
constitute Purchaser’s election to terminate this Agreement under clause (y) above. If this Agreement is terminated under clause (y) above, the Earnest Money Deposit and all interest accrued thereon will be returned to
Purchaser, the parties shall equally share the cancellation charges imposed by the Title Company (the “Cancellation Charges”), and thereafter neither Seller nor Purchaser will have any further rights or obligations to the other hereunder
except with respect to the Termination Surviving Obligations. 
 Section 9.2 Casualty of Less Than a Significant Portion. If
less than a Significant Portion of the Property is damaged as aforesaid, then Seller shall have no obligation to repair such damage or destruction, and the Closing nevertheless shall occur as otherwise provided for in this Agreement, except that
Seller shall, at Seller’s option, either (A) perform any necessary repairs, or (B) assign to Purchaser upon the Closing all insurance proceeds paid or payable to Seller in connection with such occurrences, exclusive of any proceeds of
business interruption or rent continuation insurance applicable to the period prior to Closing, in which event Purchaser shall receive a credit against the Purchase Price equal to the amount of any deductible under Seller’s insurance applicable
to such occurrences. 
 Section 9.3 Condemnation of Property. In the event that all or any Significant Portion of the
Property shall be taken in condemnation or under the right of eminent domain, Seller shall promptly notify Purchaser thereof. Within five (5) business days after receipt of the foregoing notice, Purchaser shall notify Seller, electing either:
(a) to proceed with this transaction and Closing in accordance with this Agreement notwithstanding such condemnation; 
  

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 or (b) to terminate this Agreement. If Purchaser elects to proceed with this transaction pursuant to clause
(a) above, or if there is a taking in condemnation or eminent domain that does not affect a Significant Portion of the Property, there shall be no reduction in the Purchase Price and Seller shall (x) deliver to Purchaser at the
Closing, or as soon thereafter as available, any proceeds actually received by Seller attributable to the Property from such condemnation or eminent domain proceeding, and (y) transfer and assign to Purchaser any and all rights Seller may have
with respect to payments by or from and with respect to recovery against any party for damages or compensation relating to the Property on account of such condemnation or eminent domain proceeding. A failure by Purchaser to notify Seller in writing
within five (5) business days after receiving written notice of such taking shall be deemed an election to proceed under clause (b) in this subsection. If Purchaser elects to proceed under clause (a) above, Seller shall
not compromise, settle or adjust any claims to such award without Purchaser’s prior written consent. In the event Purchaser notifies Seller (or is deemed to have notified Seller) of its election to terminate this Agreement pursuant to clause
(b) above, the Earnest Money Deposit and all interest accrued thereon will be returned to Purchaser, the parties shall equally share the Cancellation Charges, and thereafter neither Seller nor Purchaser will have any further rights or
obligations to the other hereunder except with respect to the Termination Surviving Obligations. 
 ARTICLE X. 
 CLOSING 
 Section 10.1
Closing Conditions. 
 Section 10.1.1 Purchaser’s Closing Conditions. Purchaser’s obligation to
consummate the Closing is subject to the following conditions precedent (“Purchaser’s Closing Conditions”), which conditions may be waived by Purchaser in writing as its option: 
 (a) All representations and warranties made by Seller in this Agreement shall be true and correct in all material respects on and as of the Closing Date,
as if made on and as of such date, subject to any updates to the representations of which Seller notifies Purchaser after the Effective Date pursuant to Section 8.1 hereof. 
 (b) Seller shall have delivered all of the documents required to be delivered by Seller pursuant to Section 10.4 and shall have performed in
all material respects all of its other obligations, hereunder required to be performed by the Closing Date and complied with all conditions, required by this Agreement to be performed or complied with by Seller at or prior to the Closing.

 In the event the purchase and sale of the Property are not consummated because any condition precedent to Purchaser’s obligation to close set forth
in this Section 10.1.1 has not been satisfied or waived by Purchaser in writing by the Closing Date, the Earnest Money Deposit shall be returned to Purchaser, this Agreement shall terminate and neither party shall have any further rights
or obligations hereunder, except as otherwise set forth in this Agreement. 
  

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 Section 10.1.2 Seller’s Conditions to Closing. Seller’s obligation to close
the transactions contemplated by this Agreement is conditioned on all of the following, any or all of which may be waived by Seller in writing, at its sole option: 
 (a) All representations and warranties made by Purchaser in this Agreement shall be true and correct in all material respects on and as of the Closing Date, as if made on and as of such date; and 
 (b) Purchaser shall have delivered the funds required hereunder, including the balance of the Purchase Price, by the deadline specified in
Section 3.2 and all of the documents required to be executed by Purchaser and shall have performed in all material respects all of its other obligations hereunder required to be performed by the Closing Date, and complied with all
conditions, required by this Agreement to be performed or complied with by Purchaser at or prior to the Closing. 
 In the event the purchase and sale of the
Property are not consummated because any condition precedent to Seller’s obligation to close set forth in this Section 10.1.2 has not been satisfied or waived by Seller in writing by the Closing Date, the Earnest Money Deposit shall
be retained by Seller as its sole and exclusive remedy, except as otherwise provided in this Agreement, and this Agreement shall terminate and neither party shall have any further rights or obligations hereunder except as otherwise set forth herein.

 Section 10.2 Closing. The Closing of the sale of the Property by Seller to Purchaser will occur on or before
September 27, 2006 (the “Closing Date”) through the escrow established with the Title Company. At Closing, the events set forth in this Article X will occur, it being understood that the performance or tender of
performance of all matters set forth in this Article X are mutually concurrent conditions which may be waived by the party for whose benefit they are intended. 
 Section 10.3 Purchaser’s Closing Obligations. At least one (1) Business Day prior to the Closing Date (or at such times as may otherwise be provided herein), Purchaser, at its sole cost
and expense, will deliver the following items in escrow with the Title Company pursuant to Section 4.3, for delivery to Seller at Closing as provided herein: 
 (a) The Purchase Price, after all adjustments are made at the Closing as herein provided, by Federal Reserve wire transfer of immediately available funds, in accordance with the timing and other requirements of
Section 3.2; 
 (b) Two counterparts of the Blanket Conveyance, Bill of Sale, and Assignment and Assumption substantially in the
form attached hereto as Exhibit G (the ”Blanket Conveyance”) duly executed and acknowledged by Purchaser; 
 (c) Evidence reasonably satisfactory to Title Company that the person executing the Closing documents on behalf of Purchaser has full right, power, and authority to do so; 
  

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 (d) Two counterparts of the Safeco Lease, duly executed and acknowledged by Purchaser; and 
 (e) Such other documents as may be reasonably necessary or appropriate to effect the consummation of the transactions which are the subject of this
Agreement. 
 Section 10.4 Seller’s Closing Obligations. Seller, at its sole cost and expense, will deliver items
(a) through (e) in escrow with the Title Company pursuant to Section 4.3, and items (f), (g), (h), (i) and (j) to Purchaser at the Property: 
 (a) A special warranty deed in the form attached hereto as Exhibit H-1 (the “Deed”), duly executed and acknowledged
by Seller conveying to Purchaser the Real Property and the Improvements (other than the Skybridges) subject only to the Permitted Exceptions, which Deed shall be delivered to Purchaser by the Title Company causing same to be recorded in the Official
Records, and a quitclaim deed in the form attached hereto as Exhibit H-2 conveying the Skybridges, which quitclaim deed shall be delivered to Purchaser by the Title Company causing same to be recorded in the Official Records;

 (b) Two counterparts of the Blanket Conveyance duly executed and acknowledged by Seller; 
 (c) Two counterparts of the Safeco Lease, duly executed and acknowledged by Safeco Insurance Company of America; 
 (d) A certificate in the form attached hereto as Exhibit I (“Certificate as to Foreign Status”) certifying that Seller is
not a “foreign person” as defined in Section 1445 of the Code, as well as any form or other document required under applicable laws to be executed by Seller in connection with any transfer tax applicable to the transaction
contemplated by this Agreement; 
 (e) To the extent obtained by Seller, Estoppel Certificates from each of the Tenants under Leases and a
Seller’s estoppel certificate that the Seller has not received notice of any claims from any Tenant that did not execute an Estoppel Certificate; 
 (f) Evidence that the Seller has requested that the City of Seattle consent to the assignment of the rights granted under existing City ordinances to maintain the Skybridges included as part of the Real Property over
public rights-of-way; 
 (g) Such other documents as may be reasonably necessary or appropriate to effectuate the transaction which are the
subject of this Agreement; 
 (h) The Personal Property; 
 (i) All original Licenses and Permits in Seller’s Control; and 
 (j) Such keys to the Improvements in
Seller’s Control as Purchaser may request. 
  

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 Section 10.5 Prorations. Business improvement district charges; vault rent; water,
sewer and utility charges; amounts payable under any Service Contracts or other agreements or documents; annual permits and/or inspection fees (calculated on the basis of the period covered); and any other expenses of the operation and maintenance
of the portion of the Property not covered by the Safeco Lease shall all be prorated as of 11:59 p.m. on the date immediately preceding the Closing Date (i.e., Purchaser is entitled to the income and responsible for the expenses of the day of
Closing), on the basis of a 365-day year. Excluded from such pro ratable expenses are all financing costs. Seller will pay all ad valorem real and personal property taxes through the date immediately preceding the Closing Date. Because Purchaser is
a public entity exempt from property taxes no tax proration for ad valorem taxes will be required. Local improvement district and/or special assessments installment payments shall be prorated as of the date immediately preceding the Closing Date.
Seller and Purchaser hereby agree that if any of the aforesaid prorations and credits cannot be calculated accurately on the Closing Date or in the case of rents or other charges received from tenants, such amount have not been collected, then the
same shall be calculated as soon as reasonably practicable after the Closing Date or the date such amounts have been collected, and either party owing the other party a sum of money based on such subsequent proration(s) or credits shall pay said sum
to the other party within thirty (30) days thereafter. Any amounts not paid within such thirty (30) day period shall bear interest from the date actually received by the payor until paid at the greater of (i) the rate of ten percent
(10%) per annum or (ii) the prime rate (or base rate) reported from time to time in the “Money Rates” column or section of The Wall Street Journal as being the base rate on corporate loans at larger United States money
center commercial banks plus two (2) percent. Upon request of either party, the parties shall provide a detailed and accurate written statement signed by such party certifying as to the payments received by such party from tenants from and
after Closing and to the manner in which such payments were applied, and shall make their books and records available for inspection by the other party during ordinary business hours upon reasonable advance notice. The provisions of this
Section 10.5 shall survive Closing. 
 Section 10.6 Delivery of Real Property. Upon completion of the Closing,
Seller will deliver to Purchaser possession of the Real Property and Improvements, subject to the Safeco Lease and the Permitted Exceptions. 
 Section 10.7 Costs of Title Company and Closing Costs. Purchaser will pay (i) all premiums and other costs for the Title Policy in excess of the premium for a standard owners policy, including, but not limited to,
any endorsements and any mortgagee policy of title insurance, (ii) one-half of the Title Company’s closing and escrow fees, (iii) the costs associated with any updates to the Survey commissioned by Purchaser, and (iv) the
recording fees required in connection with the transfer of the Property to Purchaser. Seller will pay (i) the premium for the Title Policy to the extent of the premium for a standard coverage policy, (ii) one-half of the Title
Company’s closing and escrow fees, and (iii) the real estate excise tax and other applicable transfer taxes. 
 Section 10.8 Post-Closing Delivery of Lease Notice. Promptly following Closing, Seller will deliver to each tenant under each lease of the Real Property being assumed by Purchaser, a letter acknowledging the sale of the
Property to Purchaser and the assignment of the obligations under the Leases to Purchaser. This Section 10.8 shall survive Closing. 
  

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 Section 10.9 Collegiana Lawsuit. Purchaser acknowledges that Kauri Investments, Ltd.
(“Kauri”) has petitioned for discretionary review of the Court of Appeals decision in the Collegiana Lawsuit. If the discretionary appeal is accepted by the Washington Supreme Court, Seller will contest the appeal at its sole
cost and expense and vigorously defend any further proceedings in the trial court if the appeal is granted and the matter remanded for further proceedings. After Closing, Purchaser may, if it so elects, participate with Seller in the appeal at
Purchaser’s expense, but Seller shall nonetheless control the proceeding. Absent the entry of a final judgment in the Collegiana Lawsuit (i.e., a judgment that is no longer the subject of an appeal or other ongoing litigation) prior to Closing,
the parties shall proceed to close the purchase and sale of the entire Property, but shall escrow funds and proceed in accordance with the terms of Section 10.10 below. If a final judgment is entered in favor of Seller in the Collegiana
Lawsuit before or after Closing, then if Seller is awarded any fees or costs in such appeal, it shall be entitled to retain such, together in all cases with the fees and costs awarded at the trial and Court of Appeals levels and the Kauri-forfeited
deposit and all interest earned therewith. If a final judgment granting specific performance is entered in favor of Kauri prior to Closing, then the Purchase Price for the Property shall be reduced by (a) Two Million One Hundred Thousand
Dollars ($2,100,000) and (b) if any other portion of the Property is permanently encumbered by a parking easement in favor of Kauri, then the Purchase Price shall be reduced by an additional One Hundred Twenty-Five Thousand Dollars ($125,000),
and such easement shall be deemed a Permitted Exception, and the Collegiana Property shall be excluded from this transaction. Seller shall be responsible for the payment of any monetary judgment (including fees and costs) entered in favor of Kauri
in the Collegiana Lawsuit before Closing and shall indemnify and hold Purchaser harmless therefrom. This Section 10.9 shall survive Closing. 
 Section 10.10 Collegiana Hold-Back. If final judgment is not entered in the Collegiana Lawsuit prior to Closing, then a Two Million One Hundred Thousand Dollar ($2,100,000) portion of the Purchase
Price (the “Escrowed Funds”) shall be left in escrow in an interest bearing account with the Title Company at Closing, pending entry of that final judgment. If final judgment is entered in favor of Seller in the Collegiana
Lawsuit, then the Escrowed Funds, exclusive of (a) interest thereon, (b) an amount equal to Purchaser’s reasonable out-of-pocket attorney’s incurred in connection with the Collegiana Lawsuit, if any, and fully documented to
Seller, and (c) an amount equal to the Agreed Expenditures, as defined below (collectively the “Purchaser’s Deductions”) shall be remitted to Seller, and the balance shall be remitted to Purchaser and Seller shall
pay Purchaser an amount equal to the Purchaser’s Deductions, if any, which exceed the Escrowed Funds. If final judgment granting specific performance is entered in favor of Kauri in the Collegiana Lawsuit, then $2,100,000 of the Escrowed Funds
plus the accrued interest shall be remitted to Purchaser and Seller shall pay Purchaser an amount equal to the Purchaser’s Deductions less the accrued interest previously paid. If in any final judgment granting specific performance entered in
favor of Kauri, Kauri is awarded a permanent parking easement on any portion of the Property, Seller shall be obligated to remit to Purchaser an additional One Hundred Twenty-Five Thousand Dollars ($125,000). As used herein, the “Agreed
Expenditures” means all repairs and maintenance expenses incurred by Purchaser in connection with the Collegiana, to the extent such repairs and maintenance are required by Authorities or necessary to avoid potential deterioration or
damages to the Collegiana and which exceed Thirty Five Thousand Dollars ($35,000) in any consecutive twelve (12) month period. If, however, Purchaser uses the Property prior to the entry of final judgment in the Collegiana 
  

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 Lawsuit (other than to the extent needed for prudent managerial oversight or to undertake maintenance and repair), items
(a) and (c) shall be excluded from Purchaser’s Deductions. Seller shall be responsible for the payment of any monetary judgment (including fees and costs) entered in favor of Kauri in the Collegiana Lawsuit after Closing and shall
indemnify and hold Purchaser harmless therefrom. This Section 10.10 shall survive Closing and the limitations set forth in Section 13.3 and Section 16.1 of this Agreement shall not apply to any claims, actions,
judgments or liabilities arising under this Section 10.10. 
 ARTICLE XI. 
 BROKERAGE 
 Section 11.1
Brokers. Seller has agreed to pay to Pacific Real Estate Partners, Inc. (“Broker”) a real estate commission at Closing pursuant to a separate written agreement between Seller and Broker (the “Broker
Agreements”). Other than as stated in the first sentence of this Section 11.1, Purchaser and Seller represent to the other that no real estate brokers, agents or finders’ fees or commissions are due or will be due or
arise in conjunction with the execution of this Agreement or consummation of this transaction (including the lease of the Property to Safeco pursuant to the Safeco Lease) by reason of the acts of such party, and Purchaser and Seller will indemnify
and hereby agree to hold the other party harmless from any brokerage or finder’s fee or commission claimed by any person asserting his entitlement thereto at the alleged instigation of the indemnifying party for or on account of this Agreement
or the transactions contemplated hereby. The provisions of this Article XI will survive any Closing or termination of this Agreement. 
 ARTICLE XII. 
 CONFIDENTIALITY 
 Section 12.1 Confidentiality. Seller and Purchaser each expressly acknowledges and agrees that the transactions contemplated by this Agreement and the terms, conditions, and negotiations concerning
the same will be held in the strictest confidence by each of them and will not be disclosed by either of them except to their respective legal counsel, accountants, consultants, officers, partners, directors, investors, members and shareholders, and
except and only to the extent that such disclosure may be necessary for their respective performances hereunder or as otherwise required by applicable law or by virtue of the fact that a party or an Affiliate is a public company or a public
institution subject to state and federal public disclosure and public meeting laws. Purchaser further acknowledges and agrees that, unless and until the Closing occurs, all Confidential Information obtained by Purchaser in connection with the
Property will not be disclosed by Purchaser to any third persons other than the Permitted Outside Parties without the prior written consent of Seller. Nothing contained in this Article XII will preclude or limit either party to this Agreement
from disclosing or accessing any information otherwise deemed confidential under this Article XII in connection with that party’s enforcement of its rights following a disagreement hereunder, or in response to lawful process or subpoena
or other valid or enforceable order of a court of competent jurisdiction or any filings with any Authorities required by reason of the transactions provided for herein pursuant to an opinion of counsel. The provisions of this Article XII will
survive any termination of this Agreement. 
  

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 ARTICLE XIII. 
 REMEDIES 
 Section 13.1 PURCHASER’S REMEDIES. IN THE EVENT THE CLOSING OF THE
PURCHASE AND SALE TRANSACTION PROVIDED FOR HEREIN DOES NOT OCCUR AS HEREIN PROVIDED SOLELY BY REASON OF MATERIAL DEFAULT OF SELLER, PURCHASER MAY, AS PURCHASER’S SOLE AND EXCLUSIVE REMEDY, ELECT BY NOTICE DELIVERED TO SELLER WITHIN TEN
(10) BUSINESS DAYS FOLLOWING THE SCHEDULED CLOSING DATE, EITHER OF THE FOLLOWING: 
 (A) TERMINATE THIS AGREEMENT, IN WHICH EVENT:
(I) PURCHASER WILL RECEIVE FROM THE TITLE COMPANY THE EARNEST MONEY DEPOSIT; AND(II) SELLER AND PURCHASER WILL HAVE NO FURTHER RIGHTS OR OBLIGATIONS UNDER THIS AGREEMENT, EXCEPT WITH RESPECT TO THE TERMINATION SURVIVING OBLIGATIONS; OR

 (B) PURSUE SPECIFIC PERFORMANCE OF THIS AGREEMENT SO LONG AS ANY ACTION OR PROCEEDING FOR SPECIFIC PERFORMANCE COMMENCED BY PURCHASER
AGAINST SELLER SHALL BE FILED WITHIN TEN (10) BUSINESS DAYS AFTER THE SCHEDULED CLOSING DATE; PROVIDED, HOWEVER, IF SPECIFIC PERFORMANCE IS NOT AN AVAILABLE REMEDY HEREUNDER, THEN PURCHASER’S SOLE REMEDY SHALL BE AS PROVIDED IN SECTION
13.1(A) ABOVE, EXCEPT THAT IF PURCHASER IS UNABLE TO PURSUE SPECIFIC PERFORMANCE SOLELY BECAUSE OF SELLER’S SALE OF THE PROPERTY, THEN IN ADDITION TO RECOVERING FROM THE TITLE COMPANY THE EARNEST MONEY DEPOSIT, PURCHASER SHALL ALSO BE
ENTITLED TO RECOVER FROM SELLER CONTRACT DAMAGES EQUAL TO PURCHASER’S ACTUAL, REASONABLE LOSSES AS A RESULT THEREOF, SUBJECT TO SECTION 13.3 BELOW (BUT SUCH DAMAGES WITH RESPECT TO PURCHASER’S LOSS OF THE BENEFIT OF ITS BARGAIN
SHALL NOT EXCEED THE NET EXCESS AMOUNT, IF ANY, THAT SELLER WOULD HAVE REALIZED HAD SELLER SOLD THE PROPERTY FOR ITS FAIR MARKET VALUE ON THE CLOSING DATE TO A BONA FIDE THIRD PARTY PURCHASER OVER THE PURCHASE PRICE), WHEREUPON PURCHASER AND SELLER
SHALL HAVE NO FURTHER RIGHTS OR OBLIGATIONS UNDER THIS AGREEMENT EXCEPT WITH RESPECT TO THE TERMINATION SURVIVING OBLIGATIONS. 
 IN EITHER
EVENT, PURCHASER HEREBY WAIVES ALL OTHER REMEDIES FOR A PRE-CLOSING DEFAULT BY SELLER, INCLUDING WITHOUT LIMITATION, ANY CLAIM AGAINST SELLER FOR DAMAGES (OTHER THAN AS EXPRESSLY PROVIDED HEREINABOVE) OF ANY TYPE OR KIND INCLUDING, WITHOUT
LIMITATION, PUNITIVE DAMAGES. FAILURE OF PURCHASER TO MAKE THE FOREGOING ELECTION WITHIN THE FOREGOING TEN (10) BUSINESS DAY PERIOD (OR IF PURCHASER TIMELY ELECTED TO PURSUE SPECIFIC PERFORMANCE BUT FAILED TO FILE THE SPECIFIC PERFORMANCE
ACTION WITHIN THE FOREGOING TEN (10) BUSINESS DAY PERIOD) SHALL BE DEEMED AN ELECTION BY PURCHASER TO PURSUE THE REMEDY IN SECTION 13.1(A) ABOVE, WHEREUPON 
  

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 SELLER AND PURCHASER WILL HAVE NO FURTHER RIGHTS OR OBLIGATIONS UNDER THIS AGREEMENT, EXCEPT WITH RESPECT TO THE
TERMINATION SURVIVING OBLIGATIONS. NOTWITHSTANDING THE FOREGOING, NOTHING CONTAINED IN THIS SECTION 13.1 WILL LIMIT PURCHASER’S REMEDIES AT LAW, IN EQUITY OR AS HEREIN PROVIDED IN THE EVENT OF A BREACH BY SELLER OF ANY OF THE TERMINATION
SURVIVING OBLIGATIONS AFTER TERMINATION. NOTWITHSTANDING ANYTHING TO THE CONTRARY HEREIN, PURCHASER SHALL NOT SEEK A PERSONAL JUDGMENT AGAINST SELLER NOR ITS MEMBERS, MANAGERS, EMPLOYEES OR AGENTS, NOR THE SHAREHOLDERS, OFFICERS, DIRECTORS,
EMPLOYEES, INVESTMENT ADVISORS OR AGENTS OF ANY OF THEM FOR ANY CLAIMS UNDER OR RELATED TO THIS AGREEMENT OR THE PROPERTY. 
  

			
	 

	  	 

	Purchaser’s Initials	  	Seller’s Initials

 Section 13.2 DEFAULT BY PURCHASER. IN THE EVENT THE CLOSING AND THE
CONSUMMATION OF THE TRANSACTIONS CONTEMPLATED HEREIN DO NOT OCCUR AS PROVIDED HEREIN BY REASON OF A DEFAULT BY PURCHASER, PURCHASER AND SELLER AGREE THAT IT WOULD BE IMPRACTICAL AND EXTREMELY DIFFICULT TO FIX THE DAMAGES WHICH SELLER MAY SUFFER AND
THAT THE EARNEST MONEY DEPOSIT, EXCLUSIVE OF ANY INTEREST ACCRUED THEREON, IS A REASONABLE ESTIMATE OF SUCH DAMAGES. THE PARTIES THEREFORE AGREE THAT IN THE EVENT THAT THE CLOSING AND THE CONSUMMATION OF THE TRANSACTIONS CONTEMPLATED HEREIN DO NOT
OCCUR AS PROVIDED HEREIN SOLELY BY REASON OF ANY DEFAULT OF PURCHASER IN THE PERFORMANCE OF ITS OBLIGATIONS UNDER THIS AGREEMENT, THE EARNEST MONEY DEPOSIT, INCLUSIVE OF ANY INTEREST ACCRUED THEREON, WILL BE SELLER’S FULL, AGREED AND LIQUIDATED
DAMAGES AND WILL BE SELLER’S SOLE AND EXCLUSIVE REMEDY (WHETHER AT LAW OR IN EQUITY) IN LIEU OF ANY OTHER DAMAGES, SPECIFIC PERFORMANCE, OR ANY OTHER REMEDY SELLER MIGHT OTHERWISE HAVE AGAINST PURCHASER, WHEREUPON THIS AGREEMENT WILL TERMINATE
AND SELLER AND PURCHASER WILL HAVE NO FURTHER RIGHTS OR OBLIGATIONS HEREUNDER, EXCEPT WITH RESPECT TO THE TERMINATION SURVIVING OBLIGATIONS. THIS SECTION SHALL NOT WAIVE OR AFFECT SELLER’S RIGHT SAND PURCHASER’S INDEMNITY OBLIGATIONS UNDER
OTHER SECTIONS OF THIS AGREEMENT (WHICH ARE NOT LIMITED BY THIS SECTION 13.2). THE PAYMENT OF SUCH AMOUNT AS LIQUIDATED DAMAGES IS NOT INTENDED AS A FORFEITURE OR PENALTY, BUT IS INTENDED TO CONSTITUTE LIQUIDATED DAMAGES TO SELLER.
NOTWITHSTANDING THE FOREGOING, NOTHING CONTAINED HEREIN WILL LIMIT SELLER’S REMEDIES AT LAW, IN EQUITY OR AS HEREIN PROVIDED IN THE EVENT OF A BREACH BY PURCHASER OF ANY OF THE TERMINATION SURVIVING OBLIGATIONS. SELLER AND PURCHASER ACKNOWLEDGE
THAT THEY HAVE READ AND UNDERSTAND THE PROVISIONS OF 
  

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 THIS SECTION 13.2, AND BY THEIR INITIALS IMMEDIATELY BELOW AGREE TO BE
BOUND BY ITS TERMS. 
  

			
	 

  
	  	 

  

	Purchaser’s Initials	  	Seller’s Initials

 Section 13.3 Consequential and Punitive Damages. Each of Seller and Purchaser
waive any right to sue the other for consequential, incidental or punitive damages for matters arising under this Agreement. This Section 13.3 shall survive Closing or termination of this Agreement. 
 ARTICLE XIV. 
 NOTICES

 Section 14.1 Notices. All notices or other communications required or permitted hereunder will be in writing, and
will be given by (a) personal delivery, (b) professional expedited delivery service with proof of delivery, (c) United States mail, postage prepaid, registered or certified mail, return receipt requested, (d) prepaid telegram or
telex (providing that such telegram or telex is confirmed by the sender by expedited delivery service or by mail in the manner previously described), or (e) by facsimile transmission, sent to the intended addressee at the address set forth
below, or to such other address or to the attention of such other person as the addressee will have designated by written notice sent in accordance herewith and will be deemed to have been given either at the time of personal delivery, or, in the
case of expedited delivery service or mail, as of the date of first attempted delivery at the address or in the manner provided herein, or, in the case of telegram, telex or facsimile transmission, upon receipt. Unless changed in accordance with the
preceding sentence, the addresses for notices given pursuant to this Agreement will be as follows: 
  

			
	To Seller:	 	General America Corporation/Safeco
		 	Insurance Company of America
		 	4333 Brooklyn Ave. NE
		 	Seattle, WA 98189
		 	Attn: Corporate Real Estate
		 	Fax: (206) 545-5477
		
	And to	 	General America Corporation
		 	4333 Brooklyn Ave. NE
		 	Seattle, WA 98189
		 	Attn: General Counsel
		 	Fax: (206) 545-5559

  

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	with copy to:	  	Alston, Courtnage, & Bassetti LLP
		  	1000 Second Avenue, Suite 3900
		  	Seattle, WA 98104-1045
		  	Attn: Michael S. Courtnage
		  	Fax: (206) 623-1752
		
	To Purchaser:	  	University of Washington
		  	Real Estate Office
		  	1326 Fifth Avenue, 400 Skinner Building
		  	Seattle, WA 98101-2610
		  	Attn: Director of Real Estate
		  	Fax: (206) 685-1547
		
	with copy to:	  	Attorney General’s Office – UW Division
		  	Box 351260
		  	University of Washington
		  	101 Gerberding Hall
		  	Seattle, WA 98195
		  	Attn: Jack G. Johnson
		  	Fax: (206) 543-0779
		
	To Title	  	
	Company:	  	Stewart Title Guaranty Company
		  	1000 Second Avenue, Suite 1620
		  	Seattle, WA 98104
		  	Title Order No.: 206136002
		  	Attn: John Jones
		  	Fax: (206) 770-8868

 ARTICLE XV. 
 ASSIGNMENT AND BINDING EFFECT 
 Section 15.1 Assignment; Binding Effect. Neither
party will have the right to assign this Agreement without the non-assigning party’s prior written consent, which consent may be withheld in such non-assigning party’s sole and absolute discretion. Any attempted assignment or delegation in
violation of this Section 15.1 without the prior written consent of the other party hereto shall be void, and the purported assignee shall not have any rights hereunder. Notwithstanding the foregoing, Purchaser and Seller may each assign
and delegate its rights and obligations under this Agreement to an Affiliate of such assigning party without the consent of the non-assigning party, provided that (i) as of the effective date of such assignment, such Affiliate assignee
expressly assumes, for the benefit of the non-assigning party, all of the assigning party’s obligations under this Agreement, and (ii) any such assignment shall not relieve the assigning party of its obligations hereunder. Subject to the
foregoing, this Agreement will be binding upon and inure to the benefit of Seller and Purchaser and their respective successors and permitted assigns, and no other party will be conferred any rights by virtue of this Agreement or be entitled to
enforce any of the provisions hereof. All obligations of Seller hereunder are joint and several. Whenever a reference is made in this Agreement to Seller or Purchaser, such reference will include the successors and permitted assigns of such party
under this Agreement. 
  

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 ARTICLE XVI. 
 PURCHASER CLAIMS PERIOD 
 Section 16.1 Purchaser Claims Period; Limitation.
Notwithstanding any provision to the contrary contained in this Agreement or any documents executed by Seller pursuant hereto or in connection herewith, the maximum aggregate liability of Seller under this Agreement and any and all documents
executed pursuant hereto or in connection herewith (including, without limitation, the breach of any representations and warranties of Seller contained in such documents) for which a claim is timely made by Purchaser shall not exceed One Million
Dollars ($1,000,000). Purchaser will not have any right to bring any action against Seller as a result of any untruth or inaccuracy of such representations and warranties, or any such breach, unless and until the aggregate amount of all liability
and losses arising out of any such untruth or inaccuracy, or any such breach, exceeds One Hundred Thousand Dollars ($100,000). Any action, suit or proceeding brought by Purchaser against Seller arising from or related to this Agreement must be
commenced and served, if at all, on or before the date which is twelve (12) months after the date scheduled for the Closing Date. This Section 16.1 shall survive the Closing. 
 ARTICLE XVII. 
 MISCELLANEOUS 
 Section 17.1 Waivers. No waiver of any breach of any covenant or provisions contained herein will be deemed a waiver of any preceding
or succeeding breach thereof, or of any other covenant or provision contained herein. No extension of time for performance of any obligation or act will be deemed an extension of the time for performance of any other obligation or act. 

Section 17.2 Recovery of Certain Fees. In the event a party hereto files any action or suit against another party hereto relating
to or arising out of this Agreement, the transaction described herein, or the enforcement hereof, then in that event the prevailing party will be entitled to have and recover of and from the other party all reasonable attorneys’ fees and costs
resulting therefrom. For purposes of this Agreement, the term “attorneys’ fees” or “attorneys’ fees and costs” shall mean the fees and expenses of counsel to the parties hereto, which may include
printing, photostating, duplicating and other expenses, air freight charges, and fees billed for law clerks, paralegals and other persons not admitted to the bar but performing services under the supervision of an attorney, and the costs and fees
incurred in connection with the enforcement or collection of any judgment obtained in any such proceeding. The provisions of this Section 17.2 shall survive the entry of any judgment, and shall not merge, or be deemed to have merged,
into any judgment. This Section 17.2 shall survive the Closing or any termination. 
 Section 17.3 Time of
Essence. Seller and Purchaser hereby acknowledge and agree that time is strictly of the essence with respect to each and every term, condition, obligation and provision hereof. 
  

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 Section 17.4 Construction. Headings at the beginning of each article and section are
solely for the convenience of the parties and are not a part of this Agreement. Whenever required by the context of this Agreement, the singular will include the plural and the masculine will include the feminine and vice versa. This Agreement will
not be construed as if it had been prepared by one of the parties, but rather as if both parties had prepared the same. All exhibits and schedules referred to in this Agreement are attached and incorporated by this reference, and any capitalized
term used in any exhibit or schedule which is not defined in such exhibit or schedule will have the meaning attributable to such term in the body of this Agreement. In the event the date on which Purchaser or Seller is required to take any action
under the terms of this Agreement is not a Business Day, the action will be taken on the next succeeding Business Day. 
 Section 17.5. Counterparts. To facilitate execution of this Agreement, this Agreement may be executed in multiple counterparts, each of which, when assembled to include an original signature for each party contemplated to
sign this Agreement, will constitute a complete and fully executed original. All such fully executed original counterparts will collectively constitute a single agreement. 
 Section 17.6 Severability. If any term or other provision of this Agreement is invalid, illegal, or incapable of being enforced by any
rule of law or public policy, all of the other conditions and provisions of this Agreement will nevertheless remain in full force and effect, so long as the economic or legal substance of the transactions contemplated hereby is not affected in any
adverse manner to either party. Upon such determination that any term or other provision is invalid, illegal, or incapable of being enforced, the parties hereto will negotiate in good faith to modify this Agreement so as to reflect the original
intent of the parties as closely as possible in an acceptable manner to the end that the transactions contemplated hereby are fulfilled to the extent possible. 
 Section 17.7 Entire Agreement. This Agreement is the final expression of, and contains the entire agreement between, the parties with respect to the subject matter hereof, and supersedes all prior
understandings with respect thereto. This Agreement may not be modified, changed, supplemented or terminated, nor may any obligations hereunder be waived, except by written instrument, signed by the party to be charged or by its agent duly
authorized in writing, or as otherwise expressly permitted herein. 
 Section 17.8 Governing Law. This Agreement and the
rights and obligations of the parties hereto shall be governed by and construed and enforced in accordance with the laws of the State of Washington, exclusive of the conflict of laws principles of such state. The parties consent to jurisdiction of
the state courts located in King County, Washington in the event of any litigation arising out of this Agreement. 
 Section 17.9
Recording. The parties hereto agree that this Agreement shall not be recorded. However, at Purchaser’s option, a memorandum of this Agreement may be recorded in the Official Records. In the event this Agreement is terminated,
Purchaser agrees to record a termination of the memorandum promptly following request by Seller. 
  

 -34- 

 Section 17.10 Further Actions. The parties agree to execute such instructions to the
Title Company and such other instruments and to do such further acts as may be reasonably necessary to carry out the provisions of this Agreement. 
 Section 17.11 No Other Inducements. The making, execution and delivery of this Agreement by the parties hereto has been induced by no representations, statements, warranties or agreements other than those expressly set
forth herein. 
 Section 17.12 Exhibits. Exhibits A through L, inclusive, are incorporated herein by
reference. 
 Section 17.13 No Partnership. Notwithstanding anything to the contrary contained herein, this Agreement
shall not be deemed or construed to make the parties hereto partners or joint venturers, it being the intention of the parties to merely create the relationship of Seller and Purchaser with respect to the Property to be conveyed as contemplated
hereby. 
 Section 17.14 Limitations on Benefits. It is the explicit intention of Purchaser and Seller that no person or
entity other than Purchaser and Seller and their permitted successors and assigns is or shall be entitled to bring any action to enforce any provision of this Agreement against any of the parties hereto, and the covenants, undertakings and
agreements set forth in this Agreement shall be solely for the benefit of, and shall be enforceable only by, Purchaser and Seller or their respective successors and assigns as permitted hereunder. Nothing contained in this Agreement shall under any
circumstances whatsoever be deemed or construed, or be interpreted, as making any third party (including, without limitation, Broker) a beneficiary of any term or provision of this Agreement or any instrument or document delivered pursuant hereto,
and Purchaser and Seller expressly reject any such intent, construction or interpretation of this Agreement. 
 IN WITNESS WHEREOF, Seller
and Purchaser have respectively executed this Agreement to be effective as of the date first above written. 
  

			
	SELLER
	
	 GENERAL AMERICA CORPORATION, a
 Washington
corporation

		
	By	 	 

	Its	 	Executive Vice President

 [Signatures continued on next page] 
  

 -35- 

			
	GENERAL INSURANCE COMPANY OF AMERICA
		
	 By
	 	 

	 Its
	 	Executive Vice President
	
	SAFECO INSURANCE COMPANY OF AMERICA
		
	 By
	 	 

	 Its
	 	Executive Vice President

  

							
	APPROVED AS TO FORM	  	 PURCHASER
  

	 By
  
	 	 

  
	  	THE BOARD OF REGENTS OF THE UNIVERSITY OF WASHINGTON, an agency of the State of Washington
		 	 Assistant Attorney General
	  		 	
		 	 State of Washington
	  		 	
		 		  	 By
	 	 

  

		 		  		 	Weldon E. Ihrig
		 		  		 	Executive Vice President

  

 -36-

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