Document:

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Exhibit 10.16.2

PIER 1 IMPORTS

NON-EMPLOYEE DIRECTOR COMPENSATION PLAN

ADOPTED JUNE 24, 1999

AS AMENDED MARCH 25, 2008

Cash Compensation (payable in advance at beginning of each fiscal year)

	 	 	 	 	 	 	 	 	 
	 	•	 	 	Non-Employee Director Annual Retainer 
	 	$	150,000	 
	 	•	 	 	Audit Committee Chair Annual Retainer 
	 	$	25,000	 
	 	•	 	 	Compensation Committee Chair Annual Retainer 
	 	$	25,000	 
	 	•	 	 	Nominating/Corporate Governance
Committee Chair Annual Retainer 
	 	$	10,000	 
	 	•	 	 	Non-Executive Chairman of the Board Annual Retainer 
	 	$	75,000	 

Effective March 1, 2009 (beginning of fiscal year 2010) fifty percent (50%) of such cash
compensation shall, in lieu of being paid to the Non-Employee Director, be deferred into Director
Deferred Stock Units.

Director Deferred Stock Units 

	 	•	 	Pursuant to the Director Deferred Stock Unit Awards program set forth in the Pier 1
Imports, Inc. 2006 Stock Incentive Plan, as amended.
	 
	 	•	 	Each Non-Employee Director may elect to defer all or a portion of the remaining 50% (in
whole percentages) of their non-mandatory deferred cash fees (i.e., director, committee
chair and chairman annual retainers) for an upcoming fiscal year into an equivalent value
of deferred stock units, provided that any such deferral election is made on or before and
becomes irrevocable as of the December 31 immediately preceding such fiscal year and is
effective for the entire fiscal year.
	 
	 	•	 	Deferrals of the director annual retainer both mandatory and voluntary (other than the
portion of the deferral representing committee chair or chairman annual retainers) are
credited with an additional 25% of the deferred amount.
	 
	 	•	 	At the time a Non-Employee Director ceases to be a Director of the Company, the deferred
stock units credited to such Director at that time shall be adjusted by Pier 1 Imports to
remove from the credited amount (i) any portion of the deferred stock units applicable to
the time period following the Director ceasing to be a Director of the Company, plus (ii)
an amount of deferred stock units equal to any cash compensation paid to the Non-Employee
Director for such time period (such units to be valued as of the cash compensation payment
date).exv10w21

 

Exhibit 10.21

Real Estate Purchase Agreement

     THIS REAL ESTATE PURCHASE AGREEMENT (this “Agreement”) is hereby entered into as of this
___day of March, 2008 (the “Effective Date”), by and between CHESAPEAKE LAND COMPANY, L.L.C., an
Oklahoma limited liability company and its permitted assigns (hereinafter referred to as the
“Buyer”), and PIER 1 SERVICES COMPANY, a Delaware statutory trust (hereinafter, referred to as the
“Seller”).

RECITALS:

     A. Seller is the owner of that certain parcel of real property containing approximately 14.67
acres of land located at 100 Pier 1 Place, Fort Worth, Tarrant County, Texas, the legal description
of which is attached hereto as Exhibit A (the “Land”) and the following (collectively, the
“Property”):

          (i) Real Property. The surface estate of the Land, together with the building
containing approximately 460,000 gross square feet (the “Building”), other buildings, easements,
appurtenances, rights, privileges, reversionary interests and improvements thereunto belonging or
appurtenant to the Land; the oil, gas, sulphur and other minerals (collectively “Minerals”) in and
under and that may be produced from the Property together with (a) the exclusive right to execute
any leases of Minerals, (b) all royalties, rentals, bonuses, and other payments and consideration
from any and all leases of Minerals now or hereafter existing with respect to the Property, and (c)
all other rights, title and interests appurtenant to the Minerals; all right, title and interest of
Seller in and to all alleys, strips or gores of land, if any, lying adjacent to the Land; all
rights to utilities serving the Property; all right, title and interest of Seller in and to all
rights-of-way, rights of ingress or egress or other interests in, on, or to, any land, highway,
street, road, or avenue, open or proposed, in, on, or across, in front of, abutting or adjoining
the Land.

          (ii) Items of Personal Property Included. (a) All of Seller’s right, title and
interest in the furniture (specifically desks, tables, chairs, conference room tables and chairs,
modular furniture, and all furniture and equipment within the cafeteria, kitchen and fitness
center, but specifically excluding computers, fax and copy machines, televisions, radios,
telephones, electronic equipment, office equipment, employee-owned personalty, art, décor, rugs and
stand-alone file cabinets throughout the Building) currently located on the Terrace level (i.e.,
cafeteria, kitchen and fitness center), in the offices in the lobby area, and on floors 18 and 19
of the Building, a list of which furniture shall be created after an inventory of such furniture by
Seller and Buyer within thirty (30) days after the Effective Date (the “Furniture Inventory List”)
and which list shall be included in the term “Seller’s Materials” as defined in Paragraph 3 below,
and (b) all machinery, equipment and fixtures located in or affixed or attached to the Building and
necessary for Building operation.

          (iii) Leases. All of Seller’s rights in agreements in the nature of leases,
subleases, rental contracts, occupancy agreements, licenses, permits, franchises, concessions and
other agreements relating to the use or occupancy of the Property to the extent assignable and
transferable (the “Leases”).

 

 

          (iv) Contracts. All of Seller’s rights in service contracts or other contracts
pertaining to the Land and improvements located thereon, to the extent assignable and transferable.

          (v) Other. Seller’s right, title and interest in the intangible property used in
connection with the ownership of the Land and the operation of the Building including, without
limitation, all contract rights, guarantees, architectural drawings, plans and specifications,
contracts, licenses, permits, registrations and warranties relating to the ownership, construction,
or occupancy of the Land or the Building, or both, but not including trade names, service marks,
copyrights, trademarks, patents, other intellectual property, trade secrets, phone numbers and the
like which are associated with or used in the business generally known as “Pier 1” or “Pier 1
Imports”.

     B. Seller desires to sell the Property and Buyer desires to purchase the Property in
accordance with the terms and conditions hereinafter set forth.

AGREEMENT:

     NOW, THEREFORE, in consideration of the mutual rights and obligations hereunder and the
Deposit (as hereinafter defined), Seller shall sell and convey to Buyer, and Buyer shall purchase
and acquire from Seller, the Property, upon and subject to the terms and conditions set forth in
this Agreement.

     1. Deposit. Within one (1) business day after the Effective Date of this Agreement,
Buyer shall deliver to Sendera Title Company, 2936 w. 7th Street, Fort Worth, Texas
76107, Attention: Nikki Jackson (the “Escrow Agent”) a deposit (the “Deposit”) in the
amount of Three Million and No/100 Dollars ($3,000,000.00) in the form of wire transfer of funds.
The Escrow Agent shall hold the Deposit in an interest bearing account with interest credited to
the Buyer at Closing (as hereinafter defined). If Buyer does not terminate this Agreement under
the rights granted in Paragraph 4 hereof, and Closing fails to occur through no fault of Seller,
then said interest and the entire Deposit shall be paid to Seller. In addition, and
notwithstanding anything to the contrary contained herein, (i) if Buyer does not terminate this
Agreement under the rights granted in Paragraph 4 hereof within fifteen (15) days after the
Effective Date, $1,500,000 of the Deposit and interest thereon shall be deemed non-refundable
(except as otherwise specifically provided to the contrary in Paragraphs 10, 13, 23 or 24 herein),
of which $500,000 of the $1,500,000 shall be immediately paid to Seller by Escrow Agent, (ii) if
Buyer does not terminate this Agreement under the rights granted in Paragraph 4 hereof within
thirty (30) days after the Effective Date, an additional $750,000 of the Deposit and interest
thereon shall be deemed non-refundable (except as otherwise specifically provided to the contrary
in Paragraphs 10, 13, 23 or 24 herein), of which $500,000 of the $750,000 shall be immediately paid
to Seller by Escrow Agent, and (iii) if Buyer does not terminate this Agreement under the rights
granted in Paragraph 4 hereof within forty-five (45) days after the Effective Date, an additional
$750,000 of the Deposit and interest thereon shall be deemed non-refundable (except as otherwise
specifically provided to the contrary in Paragraphs 10, 13, 23 or 24 herein), of which $500,000 of
the $750,000 shall be immediately paid to Seller by Escrow Agent. At Closing, Buyer shall receive
a credit against the Purchase Price in the amount of interest that would have accrued against the

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payments made to Seller out of the Deposit had such sums remained in Escrow Agent’s interest
bearing account. In the event of a Seller default as defined in Paragraph 12 below, Seller shall
immediately refund to Escrow Agent all portions of the Deposit delivered to Seller by Escrow Agent
and the amount of interest that would have accrued against such payments had such sums remained in
Escrow Agent’s interest bearing account. In addition to the Escrow Agent, title examination and
the Closing shall also be handled by Rattikin Title Company, 201 Main Street, Suite 800, Fort
Worth, Texas 76102 (Attn: Larry Townsend (the “Title Agent”), which shall act as the lead title
insurer and will handle the Closing. The Escrow Agent and the Title Agent shall together
coordinate the title, abstracting, closing and escrow services between them, and the title premiums
shall be split evenly between them. References herein to “Escrow Agent,” “Title Agent” and “Title
Company” shall refer to one or the other, or both of, such parties, as appropriate.

     2. Purchase Price; Payment. The purchase price for the Property (the “Purchase
Price”) shall be One Hundred Four Million and No/100 Dollars ($104,000,000.00). The entire
Purchase Price for the Property shall be due and payable by Buyer by wire transfer of funds at
Closing. The entire Deposit and all interest accrued thereon (including the portions of the
Deposit paid to Seller by Escrow Agent and all interest which would have accrued thereon had such
payments remained in Escrow Agent’s interest bearing account) shall be applied to the Purchase
Price at Closing.

     3. Investigation of Property. Within three (3) business days after the Effective Date
of this Agreement, the Seller shall furnish to Buyer, or provide Buyer access to, the following
documents with respect to the Property to the extent same are in the possession or control of
Seller:

	 	(a)	 	Copy of all leases and amendments thereto (if any);
	 
	 	(b)	 	Copy of the most recent and year-to-date operating and financial statements for
the Property;
	 
	 	(c)	 	Legal description of the Property;
	 
	 	(d)	 	Copy of the existing title policy;
	 
	 	(e)	 	Any service or operating contracts;
	 
	 	(f)	 	Any existing survey;
	 
	 	(g)	 	Architectural and engineering drawings;
	 
	 	(h)	 	Most recent real estate tax bills;
	 
	 	(i)	 	A list of security deposits;
	 
	 	(j)	 	Copy of physical, environmental or other engineering reports;
	 
	 	(k)	 	Copy of warranties and guarantees;
	 
	 	(l)	 	Copies of all correspondence and other information known to Seller relative to
violations of law or insurance requirements;
	 
	 	(m)	 	Copy of certificates of occupancy or compliance or other permits in Seller’s
possession applicable to the Property;
	 
	 	(n)	 	Stipulated appraised value for the Land and Building for tax year 2008; and
	 
	 	(o)	 	Copies of any tax abatement agreements relating to tax concessions granted with
respect to the Property (collectively, “Seller’s Materials”).

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Seller’s Materials will be held by Buyer pursuant to the terms of Paragraph 29 below, and shall be
promptly returned to Seller in the event this transaction fails to close for any reason.

In addition, upon further request by Buyer, Seller shall also promptly deliver to Buyer such
further non-proprietary due diligence documentation reasonably requested by Buyer that is related
to the condition of the Property and/or its operation and that is within Seller’s possession and
control. Commencing on the Effective Date hereof and for the entire term of this Agreement, upon
at least 24 hours advance notice, Buyer shall have reasonably necessary access to the Property
during business hours (or other mutually agreed upon times), under the supervision of Seller, for
the purpose of conducting, at its sole cost and expense, non-invasive surveys, examinations,
measurements, engineering tests and studies, environmental tests and studies, economic and/or
topographic tests, studies, inspections of mechanical, electrical, plumbing and HVAC systems, a
review of zoning, fire safety and other compliance matters, and such other activities
(collectively, the “Studies”) as Buyer deems necessary related to planning the use of the Property
and in determining whether the Property is suitable for Buyer’s intended purpose. If Buyer desires
to perform soil borings or soil analyses as a part of the Studies, Buyer shall obtain Seller’s
prior written consent, which shall not be unreasonably withheld. Except for the mere discovery of
existing defects or conditions affecting the Property, Buyer agrees to defend, indemnify and hold
Seller harmless from and against any and all liabilities, losses, liens, claims, costs and expenses
(including experts’ fees and attorneys’ fees and costs), arising from or relating to entry onto the
Property by Buyer or its agents, employees or contractors for the purpose of conducting the
Studies, even if same are caused wholly or in part by Seller’s negligence. The foregoing
indemnity shall survive Closing or termination of this Agreement.

Buyer must repair any damages to the Property resulting from any inspection or testing conducted by
it or at its direction. BUYER AGREES TO INDEMNIFY AND DEFEND SELLER AND HOLD SELLER HARMLESS FROM
AND AGAINST ALL LIENS, CLAIMS, AND LIABILITY ARISING OUT OF OR RELATED TO BUYER’S OR ITS
CONTRACTORS’ OR AGENTS’ INSPECTIONS AND TESTS IN ACCORDANCE WITH THIS PARAGRAPH 3, INCLUDING
PERSONAL INJURIES OR DEATH.

Before Buyer or any of its contractors or agents may enter onto the Property for its inspections or
tests or otherwise, Buyer or its contractors or agents shall provide Seller with certificates of
insurance evidencing that Buyer and/or each of Buyer’s contractors and/or agents who enter upon the
Property carries commercial general liability insurance (on an occurrence basis) with a combined
single limit of not less than One Million Dollars ($1,000,000) per occurrence during the period
that these parties are on the Property. Each policy must be issued by an insurance company
licensed to do business in the State of Texas and reasonably acceptable to Seller and under a form
of policy reasonably satisfactory to Seller. Seller must be included as an additional insured
under all insurance policies. The insurance may not be cancelled or amended except upon thirty
(30) days’ prior written notice to Seller.

     4. Feasibility. For a period of forty-five (45) days after the Effective Date hereof
(the “Feasibility Period”), Buyer shall have the right to terminate this Agreement solely and only
for any of the following reasons: (a) Buyer is not satisfied, in its sole and absolute discretion,
(i) with the status of title to the Property or the Minerals as reflected in the Title Commitments,
the

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Title Documents, and/or the Survey; (ii) with the environmental condition of the Property; or (iii)
with the physical condition of the Property as reflected in the Studies; or (b) Seller and Buyer
have not mutually agreed to the final terms and provisions of the Lease (hereinafter defined). If
Buyer elects to terminate this Agreement during the Feasibility Period, Buyer shall provide Seller
with written notice of termination on or before the final day of the Feasibility Period and Buyer
shall have the right to receive a full refund of the refundable portion of the Deposit, in which
case, other than the Buyer’s indemnification obligations set forth herein, the parties shall have
no further rights or obligations under this Agreement. If Buyer fails to give notice (as described
in Paragraph 21) terminating the Agreement before the expiration of the Feasibility Period, Buyer
shall be deemed to have waived its right to terminate this Agreement for any reason other than
failure of the conditions set forth in Paragraphs 10 and 17 of this Agreement or a breach of this
Agreement by Seller, and the remaining portion of the Deposit shall become non-refundable except as
otherwise specifically provided to the contrary in Paragraphs 10, 13, 23 or 24 herein. If this
Agreement is terminated by Buyer pursuant to the terms and conditions of this Paragraph 4, Buyer
and Seller hereby consent to the disbursement of the refundable portion of the Deposit and any
accrued interest thereon by the Escrow Agent to Buyer upon receipt by the Escrow Agent and the
Seller of Buyer’s written notification of such termination prior to termination of the Feasibility
Period, and without the execution by either Buyer or Seller of any additional documentation
authorizing the Escrow Agent to disburse the refundable portion of the Deposit to Buyer.

     5. Closing Date. In the event all of the conditions precedent to Closing have been
satisfied or waived, closing under the terms of this Agreement (“Closing”) shall be held at the
offices of the Escrow Agent within thirty (30) days after the expiration of the Feasibility Period
(the “Closing Date”).

     6. Conveyance. The Property is to be conveyed by Special Warranty Deed in the form
and substance of Exhibit C attached hereto (the “Deed”) to Buyer or to its permitted
assigns.

     7. Expenses. At Closing, Seller and Buyer shall pay their own respective costs
incurred with respect to the consummation of the purchase and sale of the Property including,
without limitation, attorneys’ fees. Notwithstanding the foregoing, Seller shall pay the real
estate commission set forth in Paragraph 16, and one-half (1/2) of the escrow fee; the premium for
an owner’s standard TLTA Title Policy; and the cost of the Survey (hereinafter defined). Buyer
shall pay the fee to record the Deed; any additional premiums for title insurance endorsements or
extended coverage; all costs of financing, including lender’s title insurance premium, if any; and
one-half (1/2) of the escrow fee. All real property taxes and assessments and similar fees or
charges, and other expenses and revenues of the Property shall be prorated as of the Closing Date.
After Closing, Buyer and Seller shall reconcile the actual amount of revenues or liabilities upon
receipt or payment thereof to the extent those items were prorated or credited at Closing based
upon estimates. Any other costs shall be allocated between the parties in the customary manner for
similar sales of real estate in the jurisdiction in which the Property is located.

     8. Taxes. Real estate taxes on the Land and Building for the year in which Closing
occurs are to be adjusted to the Closing Date and paid by Buyer thereafter. However, if the

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amounts of such taxes are not yet available, then such apportionment shall be made upon the basis
of the prior year’s tax amounts; and provided, further, that Seller and Buyer agree that to the
extent the actual taxes for the current tax year differ from the amount so apportioned at Closing,
then Buyer and Seller agree to allocate such taxes on a fair and equitable basis as soon as such
bills are available [including the determination of any rebate paid to Seller pursuant to the EDA
(defined below)], final adjustment to be made as soon as reasonably possible after the Closing and
determination of applicable rebates. Within five (5) business days after receipt of any rebate or
abatement applicable to real property taxes for the Land and the Building for 2008, Seller shall
deliver written notice thereof (specifying the amount of such rebate or abatement) to Buyer in
accordance with the provisions of Paragraph 21 below. Payments in connection with the final
adjustment shall be due within 30 days of written notice. Seller agrees to transfer to Buyer the
benefit of any existing tax abatements, economic development agreements with the City of Fort
Worth, Texas (the “City”), or concessions applicable to the Land and Building to the extent such
abatements, economic development agreements or concessions are transferable, whether in whole or in
part. Any such transfer or assignment shall be subject to the terms and provisions of any
agreement governing such abatement, economic development agreement or concession and shall, except
as provided herein, be made without representation or warranty. Seller hereby represents and
warrants to the best of its knowledge that the Economic Development Program Agreement executed
October 14, 2002 between the City and Seller (the “EDA”) is in full force and effect and Seller is
not in default thereunder. Upon Buyer’s request, Seller agrees to cooperate with Buyer (at no cost
to Seller) in negotiating with the City to restructure the EDA for the purpose of continuing the
real property tax benefits of similar abatements or concessions during Buyer’s ownership of the
Land and Building, but such cooperation shall not include requiring Seller to meet any specific
employment or other commitments unacceptable to Seller, nor shall such cooperation require Seller
to take or allow any action (including transferring or assigning the EDA) which would adversely
impact Seller’s current business personal property tax rebate. Notwithstanding the above, any
changes to such agreement are subject to the reasonable consent of Seller. However, if Seller
refuses to transfer or assign the EDA to Buyer, any rebates or abatements received by Seller
pursuant to the EDA relating to real property taxes shall be applied as a credit against the total
amount of real property taxes for the Land and Building for the applicable year of such rebate or
abatement. The provisions of this Paragraph shall survive the Closing hereunder and the execution
and delivery of the Deed and shall not be merged therein.

     9. Title and Survey Matters.

     (a) Title Commitments. Within five (5) business days after the Effective Date, Buyer
will obtain (a) commitments for an owner’s extended title insurance policy issued by Lawyers Title
Insurance Corporation and Chicago Title Insurance Company (collectively, the “Title Companies”)
describing the Property, showing all matters pertaining to the Property, listing Buyer as the
prospective named insured and each showing as the policy amount one-half of the total Purchase
Price (the “Title Commitments”) and (b) legible copies of all exceptions referenced therein (the
“Title Documents”). Attached hereto as Exhibit B is Schedule B from Seller’s existing
title policy, all of which items are deemed approved by Buyer (“Existing Title Matters”).

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     (b) Title Review. Within ten (10) days after receipt of the Title Commitments, the
Title Documents and Survey (defined below), Buyer shall review the Title Commitments, Title
Documents and the Survey, and notify Seller in writing of any exceptions to title to which Buyer
objects other than Existing Title Matters. If Buyer fails to notify Seller of such objections
within said ten (10) day period, Buyer shall be deemed to have waived any objection and accepted
all exceptions. Subject to the terms of this Section 9(b), prior to the Closing Date, Seller may
use reasonable efforts to cause removal of all exceptions so objected to by Buyer, but shall have
no obligation to do so. Seller shall notify Buyer within five (5) business days after Seller’s
receipt of Buyer’s objections whether or not Seller elects to cure Buyer’s objections. If Seller
notifies Buyer that Seller elects not to remove an exception (other than any monetary lien, which
Seller shall be obligated to remove) or cure an objection, then, within five (5) business days
after Buyer’s receipt of such notice from Seller, or prior to the expiration of the Feasibility
Period, whichever is earlier, Buyer shall notify Seller either that Buyer (i) waives the objection
to such exception and accepts such title as Seller is willing to convey, or (ii) terminates this
Agreement, in which event Escrow Agent shall return the refundable portion of the Deposit to Buyer
and neither party shall have any further rights or obligations under this Agreement (except for the
indemnity contained in Paragraph 3).

     If after the expiration of the Feasibility Period, the Title Companies discover the need to
amend or add any exception to the Title Commitments, other than Existing Title Matters or Buyer
waived exceptions, Title Companies will notify Buyer and Seller immediately. Within five (5)
business days after notice from Title Companies, together with a copy of such intervening lien or
matter, Buyer shall notify Seller in writing of any objections thereto. If Buyer fails to notify
Seller of such objection within such five (5) business-day period, Buyer shall be deemed to have
waived any objection and accepted all such exceptions. Prior to the Closing Date, Seller shall
cause removal of any such exceptions so objected to by Buyer. Any and all exceptions that Buyer
does not timely object to in writing, or which are Existing Title Matters, or which Buyer
subsequently waives objection to, shall be referred to hereinafter as the “Permitted Exceptions.”

     (c) Title Policy. Buyer shall receive at Closing, two identical TLTA owner’s title
insurance policies, one issued by each Title Company in the form promulgated in the state in which
the Property is located (collectively, the “Title Policies”). Each Title Policy shall be issued in
the amount of one-half of the total Purchase Price and shall insure fee simple, indefeasible title
to the Property in Buyer, subject only to the Permitted Exceptions. To the extent necessary,
Seller will cooperate with Buyer at no additional cost or expense to Seller, for Buyer to obtain
such endorsements to the Title Policies as Buyer may request.

     (d) Survey. Promptly after the Effective Date, Buyer shall obtain a current ALTA
survey of the Property prepared by Brookes Baker Surveyors (the “Survey”), and shall deliver a copy
of the Survey to Seller and the Escrow Agent and Title Agent.

     10. Representations, Warranties and Covenants. Seller represents and warrants to
Buyer the following:

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     (a) Except as otherwise provided herein, after the Effective Date hereof, Seller shall not
grant any easements and/or rights-of-way over or through the Property or further encumber
the Property without the prior written consent of the Buyer, which consent may be withheld by Buyer
in its sole discretion.

     (b) Seller has not received notice of any violations of law or municipal ordinances, orders,
or requirements noted or issued by any governmental department or authority having jurisdiction
over or affecting the Property, nor does Seller have any knowledge of the same.

     (c) All bills and claims for labor performed and materials furnished to or for the benefit of
the Property for all periods prior to the Effective Date have been (or prior to the Closing Date
will be) paid in full, and there are not now mechanics’ liens or materialmen’s liens, whether or
not perfected, on or affecting any portion of the Property, and if there shall be any such liens
due to Seller’s actions, then Seller shall use its best efforts to obtain the release of (and if
Seller is unable to obtain such release, then Seller shall bond around) the same on or before the
Closing Date. In connection therewith, Seller agrees, at Closing, to execute any affidavits and/or
customary indemnity agreements which may be required by the Title Company in order for Buyer to
obtain the Title Policy without exception for mechanics’ liens or rights of parties in possession
(other than Seller under the Lease, and rights of certain third parties as set out in Seller’s
Materials).

     (d) Seller has the power to enter into this Agreement and to consummate the transaction
contemplated herein and the execution of this Agreement and, the consummation of the transaction
contemplated herein does not violate any agreement, contract, or other instrument to which Seller
is a party or is bound, and Seller is the owner of and lawfully seized of the Property as of the
date of this Agreement and will continue to own and be so seized to the Closing Date.

     (e) No special assessments have been levied or are threatened or pending against all or any
part of the Property and Seller has no knowledge of any intended assessments except for those
assessments reflected on the real and personal property tax statements for the Property.

     (f) Except as set forth in Schedule 10 attached hereto, there are no legal actions,
suits, zoning or rezoning actions, or other legal or administrative proceedings pending or
threatened against Seller or to which Seller is a party that would materially and adversely affect
or impair the Property, and Seller is not aware of any facts which might result in any such action,
suit or other proceedings, and to Seller’s knowledge, there is no action, suit, proceeding, or
claim affecting Seller that would materially and adversely affect or impair the Property relating
to or arising out of the ownership, operation, use or occupancy of the Property pending in any
court or by or before any federal, state, county, or municipal department, commission, board,
bureau, agency or other governmental instrumentality, nor to the best knowledge of Seller has any
such action, suit, proceeding, or claim been threatened or asserted.

     (g) Except as otherwise disclosed in Seller’s Materials, there are no parties in possession by
lease or license agreement of any portion of the Property, other than Seller, as lessees, tenants
at will or at sufferance, trespassers or otherwise.

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     (h) Except as otherwise disclosed in Seller’s Materials and as set forth in Schedule
10, there are no contracts, commitments, proffers, obligations, leases or other agreements of
any kind that relate to the Property.

     (i) To Seller’s knowledge, there is no pending condemnation or similar proceeding affecting
the Property, nor is there any such proceeding contemplated by any governmental authority.

     (j) To Seller’s knowledge, except as otherwise disclosed in Seller’s Materials and in
Schedule 10, the Property complies with all applicable zoning, use, environmental, flood
control, planning, building, fire, health, traffic, disabled persons or other laws, ordinances,
regulations, statutes and rules relating to the Property. To Seller’s knowledge, Seller has all
certificates of occupancy, permits and other governmental consents necessary to own and operate the
Property for its current use. Seller has not received nor is Seller aware of any notification from
any governmental authority requiring any work to be done on the Property or advising of any
condition (including, without limitation, hazardous substances or wastes) that would render the
Property unusable or affect the usability of the Property or any part thereof for the Property’s
current use.

     (k) Seller is the sole legal fee owner of the Property, and is not holding fee title as a
nominee for any other person or entity. No person or entity has any right of first refusal or
option to acquire any interest in the Property or any part thereof, and Seller has not sold or
contracted to sell the Property or any portion thereof or interest therein other than as set forth
herein.

     (l) Seller is not a foreign person and is a “United States Person” as such term is defined in
Section 7701(a) (30) of the Internal Revenue Code of 1986, as amended (the “Code”) and shall
deliver to Buyer prior to the Closing an affidavit evidencing such fact and such other documents as
may be required under the Code.

     (m) There are no covenants, conditions, restrictions, or contractual obligations of Seller,
except as disclosed in Seller’s Materials, the Title Commitments, the Survey, or as otherwise
disclosed to Buyer in writing prior to the end of the Feasibility Period. No leasing commission
payments or tenant improvement allowances or other tenant inducements are due, or will be due,
pursuant to any agreement affecting the Property that will survive Closing, other than pursuant to
the Lease (as defined below).

     (n) To Seller’s knowledge, all books, records, leases, agreements and other items delivered or
made available to Buyer pursuant to Paragraph 3 above are accurate and complete in all material
respects.

     (o) Seller has not received any written notice from any governmental agency having
jurisdiction over the Property advising Seller that (i) the Property is in violation of any
Environmental Laws (as defined below) or (ii) there are Hazardous Substances (as defined below) on,
under or about the Property in a manner or quantity that presently violates any

-9-

 

Environmental Law.
No underground storage tanks believed by Seller to contain or be used for the storage of Hazardous
Substances (as defined below) have been removed from the Property by
Seller. No underground storage tanks have been placed on the Property by Seller. The term
“Hazardous Substance” means any hazardous or toxic substance, material or waste, pollutants or
contaminants, as defined, listed or regulated now by any federal, state or local law, ordinance,
code, regulation, rule, order or decree regulating, relating to or imposing liability or standards
of conduct concerning, any environmental conditions, health or industrial hygiene (collectively,
“Environmental Laws”), including without limitation, (i) chlorinated solvents, (ii) petroleum
products or by-products, (iii) asbestos, (iv) polychlorinated biphenyls, and (v) anything that
would be a hazardous waste, material or substance, toxic substance or pollutant, as defined under
the federal Comprehensive Environmental Response, Compensation and Liability Act of 1980, as
amended, 42 U.S.C. 9601 et. seq.; Hazardous Materials Transportation Act, 49 U.S.C. 1801 et. seq.;
Resource Conservation and Recovery Act, 42 U.S.C. 6901 et. seq., the Clean Water Act, 42 U.S.C.
1251 et. seq., any applicable state or local environmental statute, and the regulations promulgated
thereunder.

     (p) Neither Seller, nor to Sellers’ actual knowledge without inquiry, any of its respective
partners, members, shareholders, owners, employees, officers, directors, representatives or agents
is a person or entity with whom U.S. persons or entities are restricted from doing business under
regulations of the Office of Foreign Asset Control (“OFAC”) of the Department of the Treasury
(including those named on the OFAC’s Specially Designated and Blocked Persons List) or under any
statute, executive order (including the September 24, 2001, Executive Order Blocking Property and
Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or Support Terrorism), or
other governmental action.

     (q) From the Effective Date of this Agreement to the Closing Date, Seller will continue to
operate and maintain the Property in the manner of a prudent owner similarly situated, in the
ordinary course of its business and in compliance with all applicable laws. Seller shall maintain
the condition of the Property in at least the condition existing on the Effective Date of this
Agreement, ordinary wear, tear and casualty excepted. Seller will maintain in effect all insurance
in place as of the Effective Date.

     (r) From the Effective Date of this Agreement to the Closing Date, Seller shall not sell,
transfer or otherwise dispose of the Property, or any portion thereof, nor enter into any leases,
service contracts, trust deeds, mortgages, restrictions, encumbrances, liens, licenses or other
instruments or agreements affecting the Property (or amendments to existing agreements) without the
prior written consent of the Buyer, which consent shall not be unreasonably withheld, conditioned
or delayed.

     All of the representations, warranties, and covenants of the Seller contained in this
Agreement or in any document delivered to Buyer pursuant to the terms of this Agreement other than
the Lease and other than those waived by Buyer as allowed below (i) shall be true and correct in
all material respects at the Closing Date, just as though the same were made at such time, and (ii)
Buyer’s rights to enforce such representations, warranties and covenants shall survive the Closing
for a period of three hundred sixty (360) days (after which time they will terminate and be of no
further force or effect) and shall not be merged into any documents

-10-

 

delivered by Seller at Closing.
The Seller shall inform Buyer immediately if Seller learns that any of the foregoing
representations and warranties is or becomes untrue or misleading. The
Buyer shall have the right to require the Seller to execute a certificate at Closing confirming the
accuracy of the representations and warranties contained in this Agreement.

     Buyer agrees to inform Seller promptly in writing if it discovers that any representation or
warranty of Seller is inaccurate in any material respect, or if it believes that Seller has failed
to deliver to Buyer any document or material which it is obligated to deliver hereunder.

     The representations and warranties set forth in this Paragraph 10 and Paragraph 11, as updated
by the certification to be delivered by Seller, shall be for the benefit of Buyer and its
respective successors and assigns. In the event Buyer learns after Closing that any of the
representations and warranties set forth in this Paragraph 10 or Paragraph 11 below are not true
and correct in any material respect (other than those waived by Buyer as allowed below), and sends
written notice to Seller thereof prior to three hundred sixty (360) days after Closing, Seller
shall, as Buyer’s exclusive remedy, defend, indemnify and hold harmless Buyer and its successors
and assigns, from and against any and all liabilities, losses, damages, costs, expenses (including
without limitation reasonable attorneys’ fees and expenses), causes of action, suits, claims,
demands or judgments should any representation or warranty set forth in this Paragraph 10 and
Paragraph 11 prove to have been untrue or inaccurate in any material respect when made or when
reaffirmed at Closing. No right of rescission shall be available to Buyer or its successors and
assigns if any representation or warranty set forth in this Paragraph 10 and Paragraph 11 shall
prove to have been untrue or inaccurate in any material respect when made or reaffirmed.

     In the event that, prior to Closing, Buyer learns that any of the representations or
warranties or covenants set forth in this Paragraph 10 or in Paragraph 11 below are not true and
correct in any material respect, then Buyer, at its option, may either: (a) terminate this
Agreement by delivery of written notice thereof to Seller and thereupon the Deposit and any
interest thereon shall be returned to Buyer and the parties hereto shall have no further rights or
obligations to one another hereunder, or (b) waive the breach of such representations and
warranties and proceed to Closing hereunder.

     Buyer represents and warrants to Seller that (i) Buyer has the power to enter into this
Agreement and to consummate the transaction contemplated herein and the execution of this Agreement
and, the consummation of the transaction contemplated herein does not violate any agreement,
contract, or other instrument to which Buyer is a party or is bound, and (ii) Buyer is not a
“foreign” person within the meaning of Section 1445 of the Internal Revenue Code of 1986.

     11. Environmental Representations and Warranties of Seller. Seller hereby represents
and warrants to Buyer that during the period of Seller’s ownership of the Property, and to Seller’s
best knowledge, except as set forth in Schedule 10 or as otherwise disclosed in Seller’s
Materials, neither the Property nor any portion thereof has been used for landfill, dumping or
other waste disposal activities or operation, storage of raw materials, products or wastes of a
toxic or hazardous nature, or for any other use which might give rise to the existence of

-11-

 

Hazardous
Substances on the Property in violation of applicable Environmental Laws, and to Seller’s best
knowledge, no such Hazardous Substances presently exist on the Property in violation of applicable
Environmental Laws. Notwithstanding anything contained herein to the
contrary and in addition to any of Buyer’s other remedies hereunder, the representations and
warranties contained in this paragraph shall survive Closing and the execution and delivery of the
Deed for a period of three hundred sixty (360) days after Closing (after which time they will
terminate and be of no further force or effect).

     12. Default. Default for the purpose of this Agreement shall mean any failure by
Seller or Buyer to fulfill all the terms, conditions and covenants contained herein of which a
party shall give another party written notice specifying in reasonable detail the facts and
circumstances surrounding and the basis for such default, and the failure of the party receiving
the notice to cure the claimed default within five (5) days of such notice, or if such default can
not be cured within such five (5) day period, initiate a cure within five (5) days and proceed
diligently to cure within fifteen (15) days. However, it shall not be an event of default for
Buyer to exercise its rights to terminate this Agreement as provided herein.

     13. Remedies. Upon Seller’s default which remains uncured following the applicable
cure period, Buyer’s sole remedies shall be to: (a) require specific performance of Seller, (b)
cancel this Agreement and obtain a prompt return of the entire Deposit and any interest thereon, in
which case this Agreement shall be terminated and the parties released from all obligations
hereunder, or (c) waive such defaults and proceed to Closing. Upon Buyer’s default (not cured
within applicable cure periods), Seller’s sole remedies shall be to: (a) require specific
performance of Buyer, or (b) cancel this Agreement, after which both parties shall be released from
all obligations hereunder, and the portion of the Deposit not previously delivered to Seller by
Escrow Agent (plus interest thereon) shall be delivered to Seller. Seller and Buyer agree that
forfeiture of the Deposit shall be liquidated damages and not a penalty, and that actual damages
resulting to Seller from Buyer’s breach of this Agreement would be difficult or impossible to
measure because of the uncertainties of the real estate market and fluctuations of property values
and differences with respect thereto, and that the Deposit plus interest thereon is a reasonable
estimate of those damages.

     In the event either party disputes in writing the other party’s right to the Deposit, the
Escrow Agent shall have the right to file an interpleader action to determine the rightful
recipient.

     14. Parties Bound. This Agreement shall inure to the benefit of and be binding upon
the parties hereto and their respective successors and permitted assigns.

     15. Applicable Law. This Agreement shall be construed in accordance with the laws of
the State of Texas.

     16. Commission. Seller and Buyer each warrant to the other that they have dealt with
no agent or broker with respect to the transaction contemplated by this Agreement except for The
Staubach Company, whose commission shall be paid by Seller in accordance with the terms and
conditions of a separate agreement signed as of the Effective Date. Otherwise, each of Seller and

-12-

 

Buyer represent to the other that no other broker or other person is entitled to any commission,
charge or finder’s fee in connection with the transactions contemplated by this Agreement. The
parties hereto each agree to indemnify, defend and hold harmless the other party against any loss,
liability, damage, cost, claim or expense, including interest, penalties and reasonable attorneys’
fees, that the other party shall incur or suffer by reason of a breach by the indemnifying party of
the representation and warranty set forth above.

     17. Conditions Precedent to Closing. The obligation of Buyer under this Agreement to
purchase the Property from Seller is subject to the satisfaction, as of Closing, of each of the
following conditions:

     (a) Seller represents and warrants to Buyer that Seller is not a “foreign person” within the
meaning of Section 1445 of the Internal Revenue Code of 1986, and Seller furnishes Buyer an
affidavit to this effect complying with the provisions of Section 1445 of the Internal Revenue Code
of 1986;

     (b) Each of the representations and warranties made by Seller in this Agreement will be true
and correct in all material respects on the Closing Date as if made on and as of such date unless
Buyer shall have notified Seller, Seller shall have notified Buyer, or Buyer has learned of any
inaccuracies in any respect and Buyer has waived such inaccuracies;

     (c) Seller shall have complied with all of Seller’s covenants and requirements in this
Agreement to be performed by Seller;

     (d) Seller shall sign an office lease agreement initially covering approximately 344,798
rentable square feet (and decreasing to approximately 250,000 rentable square feet as described in
Paragraph 18 below) in form and substance mutually agreed to by Buyer and Seller (the “Lease”) and
which will contain, among other mutually agreeable provisions, the following specific terms:

          (i) the Premises shall initially include the mezzanine and floors 5, 6, 7, 8, 9, 10, 11, 12,
14, 15, 16, 17, and 20; however, floors 15, 16, 17 and 20 shall be released from the Lease and
delivered to Buyer as provided in the Lease and in Paragraph 18 below;

          (ii) the lease term shall be seven (7) years commencing on the Closing Date with one (1)
three-year renewal at Seller’s option;

          (iii) the base rent shall be $24.00 (plus electricity costs) per rentable square foot per year
during years 1-3, and $26.00 (plus electricity costs) per rentable square foot per year during
years 4-7;

          (iv) the base rent for the three-year renewal term (if applicable) shall be $28.00 (plus
electricity costs) per rentable square foot per year;

          (v) Beginning in the second Lease Year, Seller (as Tenant) shall pay its pro rata share of
common area expenses and all insurance which exceed the actual amount of such expenses with respect
to operation of the Building during the first Lease Year with a cap on

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controllable expenses
(specifically excluding insurance and utilities, but with the full definition of “controllable
expenses” to be defined in the Lease) of no more than a three percent (3%) increase per year
thereafter;

          (vi) Beginning January 1, 2009, Seller (as Tenant) shall pay its pro rata share of ad valorem
real estate property taxes on the Land and Building (specifically including any rebates or
abatements for such year) which exceed the ad valorem real estate property taxes assessed on the
Land and Building for calendar year 2008 (specifically including any rebates or abatements for
2008);

          (vii) the Premises will be leased to tenant in “as is” condition with all furnishings
(portions of which furnishings shall be conveyed to Buyer as set out in Paragraph 18 below);

          (viii) Buyer (as Landlord) shall have the right to add or change building signage and the name
of the Building, at Buyer’s discretion;

          (ix) Seller shall notify Buyer at least six (6) months in advance if it desires to exercise
the renewal right set forth in (ii) above;

          (x) Seller and its employees, agents, guests and invitees shall have the non-exclusive,
unrestricted right to access and use the Building’s parking garage and west employee surface
parking areas for a number of spaces equal to the ratio of the rentable square footage of the
Premises (as same fluctuates from time to time) to the total rentable square footage of the
Building; provided, however, (A) Buyer shall be allowed to reserve up to twenty (20) parking spaces
for its “motor” pool in an area to be mutually agreed upon by Seller and Buyer in the Lease, and
(B) the southeast surface visitor parking lot shall remain open and available for the nonexclusive,
unrestricted use of Seller’s and Buyer’s guests, visitors and invitees;

          (xi) Seller shall have a one-time right to terminate the Lease effective as of the end of the
fifth Lease Year by delivering written notice to Buyer at least six (6) months in advance and
paying to Buyer a termination fee equal to four (4) months of base rent for the space comprising
the Premises as of the end of the fifth Lease Year;

          (xii) Provided such space has not been leased, Seller shall have the right, after 48 hours
advance written notice, to utilize a specified portion of the lobby of the Building for special
events of up to 72 hours per event and up to four (4) times per calendar year at no additional
charge to Seller;

          (xiii) Buyer shall maintain, as a common area expense, the same level of building and parking
security as currently exists;

          (xiv) The Lease will include an exhibit of Building standard services and operations to be
provided by Buyer and included in common area expenses; and

          (xv) The Lease will contain customary subleasing and assignment provisions, including the
following provisions: (a) any excess Rent paid in connection with a sublease shall be shared
equally between Seller and Buyer; and (b) upon 90 days prior written notice (the “Sublease
Notice”), Seller may inform Buyer of Seller’s desire to sublease a portion of the Premises and
Buyer will have the option, exercisable with 30 days after delivery of the Sublease Notice, to
recapture the portion of the Premises Seller desires to sublease. If Buyer elects to recapture,
Seller shall vacate the designated portion of the Premises by the end of the 90 day notice period.
If Buyer does not elect to recapture, Seller shall have the right to sublease the Premises, subject
to the provisions of the Lease.

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The parties agree to use mutually good faith efforts to agree on the Lease prior to the expiration
of the Feasibility Period. In the event the parties have not agreed on the Lease prior to the
expiration of the Feasibility Period, then notwithstanding anything to the contrary contained
herein, Seller shall have the right to terminate this Agreement by delivery of written notice to
Buyer delivered prior to the expiration of the Feasibility Period, in which event Seller shall
return to Buyer any portion of the Deposit previously received by Seller (plus all interest accrued
thereon or which would have accrued had such sums remained in Escrow Agent’s interest bearing
account), Escrow Agent shall return the portion of the Deposit which was not previously received by
Seller (and all interest accrued thereon) to Buyer, and thereafter the parties shall have no
further rights or duties one to the other hereunder (except those that expressly survive
termination).

     (e) Delivery by Seller and Buyer, as the case may be, of the following at Closing (all of
which shall be duly executed and acknowledged where required):

          (i) The Deed conveying to Buyer good and indefeasible title in fee simple absolute to the
Property, free and clear of all liens, encumbrances, conditions, easements, assignments, and
restrictions, except for the Permitted Exceptions;

          (ii) An affidavit by Seller confirming that Seller is not a foreign person within the meaning
of 26 U.S.C Section 1445 and the regulations issued thereunder;

          (iii) A blanket conveyance, bill of sale, and assignment in the form and substance of
Exhibit E;

          (iv) An updated certificate in the form of Exhibit F executed by Seller remaking and
reaffirming all representations and warranties made by Seller to Buyer in Paragraph 10, subject to
Paragraph 17(b) above;

          (v) Originals within Seller’s possession of all Seller’s Materials; and

          (vi) Any other instruments reasonably necessary to consummate this Agreement, including, by
way of example, closing statements, releases, owner’s affidavits, tenant notification letters,
evidence of the authority of the party executing instruments on Seller’s behalf and any instruments
required by the Title Company under the Title Commitments.

The obligation of Seller under this Agreement is subject to Buyer paying the Purchase Price, Buyer
executing the Lease at Closing, Buyer complying with all of Buyer’s covenants and requirements in
the agreement to be performed by Buyer, and Buyer executing any other instruments reasonably
necessary to consummate this Agreement, including, by way of example, closing statements, evidence
of the authority of the party executing instruments on Buyer’s behalf and any instruments required
by the Title Company.

     18. Possession. Possession of the Property shall be delivered to Buyer at Closing.
However, Seller shall continue to occupy a portion of the Property pursuant to the terms of the

-15-

 

Lease. Seller agrees to vacate and deliver to Buyer at Closing floors 18 and 19 of the Building.
In addition, floor 20 and either floor 16 or 17, at Seller’s option, shall be vacated and delivered
to Buyer on or before 60 days after the expiration of the Feasibility Period, at which time the
furniture (as such term is used in Recital (A)(ii) above) located on such floors as of the
Effective Date (which furniture shall be listed in the Furniture Inventory List) will be
transferred to Buyer by a bill of sale in the form attached hereto as Exhibit E for no
additional consideration. Further, within eighteen months after the Closing Date, Seller shall
vacate and deliver to Buyer, floor 15 and either floor 16 or 17, whichever floor was not previously
delivered to Buyer, at which time the furniture (as such term is used in Recital (A)(ii) above)
located on such floors as of the Effective Date (which furniture shall be listed in the Furniture
Inventory List) will be transferred to Buyer by a bill of sale in the form attached hereto as
Exhibit E for no additional consideration. On or after the fifth anniversary of the
Closing Date, Buyer shall have the option, upon 12 months prior written notice given no later than
the fourth anniversary of the Closing Date, and payment to Seller (or, alternatively, a credit
against the next installments of Rent under the Lease) of a finish-out allowance equal to five
dollars ($5.00) per rentable square foot on the 14th floor, to require that Seller
vacate and deliver the 14th floor to Buyer, in which event the furniture (as such term
is used in Recital (A)(ii) above) located on such floor as of the Effective Date will be
transferred to Buyer by a bill of sale in the form attached hereto as Exhibit E for no
additional consideration. The Lease shall reflect the foregoing schedule and provide that,
effective upon the release of each floor of the building to Buyer, the rent and other amounts
payable under the Lease shall be adjusted appropriately to reflect the reduction of the Premises.

     19. Non-Merger. The provisions of Paragraphs 7, 10 and 11 of this Agreement shall
survive the Closing hereunder for a period of three hundred sixty (360) days (as set forth herein)
and the execution and delivery of the Deed and shall not be merged therein.

     20. Total Agreement. This Agreement contains the full and final agreement between the
parties hereto with respect to the sale and purchase of the Property. Buyer and Seller shall not
be bound by any terms, conditions, statements, warranties, or representations, oral or written, not
contained herein. No change or modification of this Agreement shall be valid unless the same is in
writing and is signed by the parties hereto. No waiver of any of the provisions of this Agreement
shall be valid unless the same is in writing and is signed by the party against which it is sought
to be enforced.

     21. Notices. All notices, demands, or other communications that may be necessary or
proper hereunder shall be in writing and shall be deemed to be delivered: (i) when received, if
delivered by hand or by nationally recognized overnight courier service (costs prepaid), (ii) when
transmitted, if sent by facsimile, (iii) two (2) days following deposit of same in a U.S. Postal
Service receptacle, if sent by mail, postage prepaid, as registered or certified mail, return
receipt requested, addressed as follows. Any notices sent by email shall also be sent by another
method recognized above:

	 	 	 	 	 
	 

	 	Buyer:
	 	Chesapeake Land Company, L.L.C.
	 

	 	 	 	6100 N. Western
	 

	 	 	 	Oklahoma City, OK 73118
	 

	 	 	 	Attention: Chip Keating

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	 	 	 	Phone# (405) 879-8478
	 

	 	 	 	Email: chip.keating@chk.com
	 

	 	 	 	Fax # (405) 879-8307
	 
	 	 	 	 
	 

	 	With a Copy To:
	 	Jackson Walker L.L.P.
	 

	 	 	 	301 Commerce Street, Suite 2400
	 

	 	 	 	Fort Worth, Texas 76102
	 

	 	 	 	Attention: Susan A. Halsey
	 

	 	 	 	Phone# (817) 334-7203
	 

	 	 	 	Email: shalsey@jw.com
	 

	 	 	 	Fax # (405) 879-8307
	 
	 	 	 	 
	 

	 	With a Courtesy Copy To:
	 	The Staubach Company
	 

	 	 	 	201 Main Street, Suite 1810
	 

	 	 	 	Fort Worth, Texas 76102
	 

	 	 	 	Phone# (817) 334-8105
	 

	 	 	 	Email: todd.burnette@staubach.com
	 

	 	 	 	Fax # (817) 334-8150
	 
	 	 	 	 
	 

	 	Seller:
	 	Pier 1 Services Company
	 

	 	 	 	100 Pier 1 Place
	 

	 	 	 	Fort Worth, TX 76102
	 

	 	 	 	Attention: General Counsel
	 

	 	 	 	Phone # (817) 252-7630
	 

	 	 	 	Email: macarter@pier1.com
	 

	 	 	 	Fax # (817) 252-7319
	 
	 	 	 	 
	 

	 	With a Copy To:
	 	J. Andrew Rogers
	 

	 	 	 	Kelly Hart & Hallman LLP
	 

	 	 	 	201 Main Street, Suite 2500
	 

	 	 	 	Fort Worth, Texas 76102
	 

	 	 	 	Phone# (817) 878-3546
	 

	 	 	 	Email: andy.rogers@khh.com
	 

	 	 	 	Fax # (817) 878-9242
	 
	 	 	 	 
	 

	 	Escrow Agent:
	 	Sendera Title Company
	 

	 	 	 	6125 Interstate 20, Suite 118
	 

	 	 	 	Fort Worth, TX 76132
	 

	 	 	 	Attention: Nikki Jackson
	 

	 	 	 	Fax # (817) 263-6279
	 

	 	 	 	Phone # (817) 263-4445
	 
	 	 	 	 
	 

	 	Title Agent:
	 	Rattikin Title Company
	 

	 	 	 	201 Main Street, Suite 800
	 

	 	 	 	Fort Worth, TX 76102
	 

	 	 	 	Attention: Larry Townsend

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	 	 	 	Phone# (817) 334-1324
	 

	 	 	 	Fax # (817) 877-4237
	 

	 	 	 	Email: ltownsend@rattikintitle.com

     Any party hereto may change its address for notice purposes hereunder by delivering written
notice thereof to the other parties in accordance with the foregoing. Rejection or refusal to
accept, or the inability to deliver because of a changed address of which no notice was given shall
not affect the validity of notice given in accordance with this Paragraph 21.

     22. Assignment. Buyer may assign this Agreement in whole or in part to any affiliate
of Buyer without the consent of Seller, or to any other assignee with the prior consent of Seller,
which may be withheld in Seller’s sole discretion. Any assignee shall expressly assume all of
Buyer’s obligations hereunder; provided, however, that any such assignment shall not release Buyer
of its duties and obligations hereunder. As used herein, “affiliate” shall mean any person or
entity controlling, controlled by or under common control with Buyer.

     23. Risk of Loss. If any fire, earthquake, windstorm or other casualty occurs and
materially affects all or any portion of the Property for its current use as an office complex on
or after the date of this Agreement and prior to the Closing, Buyer may elect, by written notice to
Seller, to terminate this Agreement and the escrow created pursuant hereto and be relieved of its
obligation to purchase the Property. If Buyer makes such election, the Deposit (including all
interest earned thereon or which would have been earned thereon) and other sums delivered to Escrow
Agent or Seller by Buyer promptly shall be returned to Buyer and neither Buyer nor Seller shall
have any further liability to the other and shall be relieved of all obligations hereunder (except
for the indemnity contained in Paragraph 3). If Buyer fails to make such election within five (5)
business days of such event, this Agreement shall continue in effect, the Purchase Price shall be
reduced by the amount of loss or damage occasioned by such casualty not covered by insurance
(including any deductible), and Seller shall, at or prior to the Closing Date, assign to Buyer
Seller’s entire right, title and interest in and to all insurance claims and proceeds to which
Seller may be entitled in connection with such casualty, in which case Buyer shall have the right
at all times to participate in all negotiations and other dealings with the insurance carrier
providing such coverage and to approve or disapprove any proposed settlement in respect to such
matter. However, if Seller’s mortgagee requires that the insurance proceeds be applied to the
payment of the mortgage debt and Seller does not have the right under its loan agreement to require
that such proceeds be made available for the repair or reconstruction of the Property, then upon
receipt of notice thereof from Seller, Buyer shall have the right to terminate this Agreement and
the escrow created pursuant hereto and be relieved of its obligation to purchase the Property. In
such event, the Deposit (including all interest earned thereon or which would have been earned
thereon) and other sums delivered to Escrow Agent or Seller by Buyer promptly shall be returned to
Buyer and neither Buyer nor Seller shall have any further liability one to the other and shall be
relieved of all obligations hereunder (except for the indemnity contained in Paragraph 3). Seller
shall promptly notify Buyer in writing of any such casualty respecting the Property. Seller shall
retain all risk of loss until Closing.

     24. Condemnation. Seller agrees to give Buyer prompt notice of any actual or
threatened taking of all or any portion of the Property by condemnation or eminent domain prior

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to the Closing Date hereunder. In the event that prior to Closing hereunder there shall occur a
taking by condemnation or eminent domain of all or any portion of the Property which would
materially and adversely affect use of the Property as an office building, or a proposed conveyance
to a condemning authority in lieu of condemnation for such portion or the whole, then Buyer, at its
option, may either (i) terminate this Agreement by delivery of written notice thereof to Seller,
and thereupon the Deposit shall be returned to Buyer and the parties hereto shall have no further
rights or obligations hereunder (except for the indemnity in Paragraph 3 above), or (ii) proceed to
Closing hereunder, in which event Seller shall assign to Buyer at Closing all interest of Seller in
and to any condemnation proceeds that may be payable to Seller on account of such condemnation and
thereupon Buyer shall control all negotiations and proceedings undertaken with the condemning
authority with respect to the Property. Buyer shall receive a credit at Closing in the amount of
any condemnation proceeds paid to Seller with respect to the Property prior to the Closing Date.

     25. Headings. The paragraph headings contained in this Agreement are for reference
purposes only and shall not affect in any way the meaning or interpretation of this Agreement.

     26. Weekends and Holidays. Any date specified in this Agreement for the performance
of an obligation or expiration of a time period which is a Saturday, Sunday or a legal holiday
shall be extended to the first regular business day after such date which is not a Saturday, Sunday
or a legal holiday.

     27. Counterpart Originals. This Agreement may be executed in multiple original
counterparts, each of which shall be an original, but all of which shall constitute one and the
same Agreement.

     28. Litigation. In the event that any party is required to resort to litigation to
enforce its rights under this Agreement, Seller and Buyer agree that any judgment awarded to the
prevailing party may include all litigation expenses of the substantially prevailing party,
including (without limitation) reasonable attorneys’ fees and court costs. The provisions of this
Paragraph shall survive the Closing hereunder and the execution and delivery of the Deed and shall
not be merged therein.

     29. Confidentiality. In addition to the terms of a letter agreement executed between
the parties dated February 27, 2008, during the term of this Agreement, neither Seller nor Buyer
shall divulge or communicate any of the particular terms of this Agreement or the existence of this
Agreement or any matters related to this transaction (including the information in the Seller’s
Materials and Studies) to any third party without the written consent of the other party; provided,
however, such restriction shall not apply (a) to Seller’s and Buyer’s (and their respective parents
and subsidiaries) directors, officers, partners, employees, legal counsel, accountants, engineers,
architects, financial advisors, lenders (and their legal counsel and consultants), financial
sources and similar professionals or consultants to the extent that Seller or Buyer, as applicable,
deems it necessary or appropriate in connection with the transaction contemplated hereunder (and
Seller or Buyer, as applicable, shall inform each of the foregoing parties of its obligations under
this Paragraph 29), (b) to the extent otherwise required by law or regulation, or (c) to
information that is or becomes generally available to the public other than as

-19-

 

a result of disclosure by one of the parties hereto. Any consent requested pursuant to this
Paragraph 29 shall not be unreasonably withheld, conditioned or delayed by the other party.
Notwithstanding the terms of the letter agreement and this Paragraph, the parties agree that
mutually approved press releases shall be distributed simultaneously by each party on a weekday to
be agreed upon by Seller and Buyer, which day shall coincide with Seller’s 8-K filing.

     30. Time. Time is of the essence in the execution and performance of this Agreement.

     31. AS-IS Condition. Except as specifically set forth in Paragraphs 10 and 11 above,
Buyer expressly acknowledges that the Property is being sold and accepted AS-IS, WHERE-IS, and
Seller makes no representations or warranties with respect to the physical condition or any other
aspect of the Property, including, without limitation, (i) the structural integrity of any
improvements on the Property, (ii) the manner, construction, condition, and state of repair or lack
of repair of any of such improvements, (iii) the conformity of the improvements to any plans or
specifications for the Property, including but not limited to any plans and specifications that may
have been or which may be provided to Buyer, (iv) the conformity of the Property to past, current
or future applicable zoning or building code requirements or the compliance with any other laws,
rules, ordinances, or regulations of any government or other body, (v) the financial earning
capacity or history or expense history of the operation of the Property, (vi) the nature and extent
of any right-of-way, lease, possession, lien, encumbrance, license, reservation, condition, or
otherwise, (vii) the existence of soil instability, past soil repairs, soil additions or conditions
of soil fill, susceptibility to landslides, sufficiency of undershoring, sufficiency of drainage,
(viii) whether the Property is located wholly or partially in a flood plain or a flood hazard
boundary or similar area, (ix) the existence or non-existence of asbestos, underground or above
ground storage tanks, hazardous waste or other toxic or hazardous materials of any kind or any
other environmental condition or whether the Property is in compliance with applicable laws, rules
and regulations, (x) the Property’s investment potential or resale at any future date, at a profit
or otherwise, (xi) any tax consequences of ownership of the Property or (xii) any other matter
whatsoever affecting the stability, integrity, other condition or status of the land or any
buildings or improvements situated on all or part of the Property (collectively, the “Property
Conditions”), and EXCEPT FOR THE WARRANTIES CONTAINED IN PARAGRAPHS 10 AND 11 AND IN THE DEED AND
OTHER DOCUMENTS EXECUTED AT CLOSING, BUYER HEREBY UNCONDITIONALLY AND IRREVOCABLY WAIVES ANY AND
ALL ACTUAL OR POTENTIAL RIGHTS BUYER MIGHT HAVE BY VIRTUE OF ANY APPLICABLE STATE, FEDERAL OR LOCAL
LAW, RULE OR REGULATION REGARDING ANY FORM OF WARRANTY, EXPRESS OR IMPLIED OR ARISING BY OPERATION
OF LAW, INCLUDING, BUT IN NO WAY LIMITED TO ANY WARRANTY OF CONDITION, HABITABILITY,
MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE RELATING TO THE PROPERTY, THE IMPROVEMENTS OR
THE PROPERTY CONDITIONS, SUCH WAIVER BEING ABSOLUTE, COMPLETE, TOTAL AND UNLIMITED IN ANY WAY.
BUYER ACKNOWLEDGES THAT IT IS RELYING ON ITS OWN INVESTIGATION OF THE PROPERTY IN DECIDING WHETHER
OR NOT TO PURCHASE THE PROPERTY AND NOT ON ANY REPRESENTATION OR WARRANTY FROM SELLER, EXCEPT

-20-

 

THOSE CONTAINED IN PARAGRAPHS 10 AND 11 AND IN THE DEED AND OTHER DOCUMENTS EXECUTED AT CLOSING.

     32. Exhibits. The following exhibits are attached hereto and incorporated herein:

Exhibit A — Legal Description

Exhibit B — Schedule B of Seller’s Title Policy

Exhibit C — Form of Special Warranty Deed

Exhibit D — Intentionally Deleted

Exhibit E — Blanket Conveyance, Bill of Sale and Assignment

Exhibit F — Updated Certificate

Schedule 10 — List of Litigation and Obligations

[Remainder of page left blank intentionally.]

-21-

 

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the
later of the dates set forth below, which date shall be inserted on page 1 of this Agreement.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	BUYER:	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	CHESAPEAKE LAND COMPANY, L.L.C.,

an Oklahoma limited liability company
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	Henry J. Hood, Senior Vice President –
	 	 	 	 	Land and Legal & General Counsel
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	Date:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	SELLER:	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	PIER 1 SERVICES COMPANY,	 	 	 	 
	 	 	a Delaware statutory trust	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	Pier 1 Holdings, Inc.,

a Delaware corporation,

its managing trustee
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 	 	 
	 

	 	 	 	 	 	 

Alex Smith, President and CEO
	 	
	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	Date:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 

-22-

 

EXHIBIT A

Legal Description

All of Lot 1 Block 1 PIER 1 ADDITION, an Addition to the City of Fort Worth, Tarrant County, Texas,
according to plat recorded in Cabinet A, Slide 10398, Deed Records of Tarrant County, Texas.

A-i 

 

EXHIBIT B

Schedule B of Seller’s Title Policy

B-i 

 

SCHEDULE B

			
	File Number: 05-12755
	 	Policy Number: 7210043-36145

EXCEPTIONS FROM COVERAGE

This
policy does not insure against loss or damage (and the Company will
not pay costs, attorney’s fees or expenses) that arise by reason of the terms and conditions of the leases or easements insured, if any, shown in Schedule A and the following matters:

	1.	 	The following restrictive covenants of record itemized below (the Company must either insert specific
recording data or delete this exception):
	 
	 	 	Covenants as recorded in Cabinet A, Slide 10398, Deed Records of Tarrant County, Texas, but omitting any covenant or restriction based on race, color, religion, sex, handicap, familial status or national origin unless and only to the extent that said covenant (a) is exempt under Chapter 42, Section 3607 of the United States Code or (b) related to handicap but does not discriminate against handicapped persons.
	 
	2.	 	Any discrepancies, conflicts, or shortages in area or boundary lines, or any encroachments or protrusions,
or any overlapping of improvements.
	 
	3.	 	Homestead or community property or survivorship rights, if any, of any spouse of any insured.
	 
	4.	 	Any titles or rights asserted by anyone, including but not
limited to, persons, the public, corporations, governments or other entities.

	 	a.	 	to tidelands, or lands comprising the shores or beds of navigable or perennial rivers and streams,
lakes, bays, gulfs or oceans, or
	 
	 	b.	 	to lands beyond the line of the harbor or bulkhead lines as established or changed by any
government, or
	 
	 	c.	 	to filled-in lands, or artificial islands, or
	 
	 	d.	 	to statutory water rights, including riparian rights, or
	 
	 	e.	 	to the area extending from the line of mean low tide to the line of vegetation, or the right of access to that area or easement along and across that area.

	5.	 	Standby fees, taxes, and assessments by any taxing authority for the year 2006, and subsequent years;
and subsequent taxes and assessments by any taxing authority for prior years due to change in land
usage or ownership, but not those taxes or assessments for prior years because of an exemption granted
to a previous owner of the property under Section 11.13, Texas Tax Code, or because of improvements
not assessed for a previous tax year.
	 
	6.	 	The following matters and all terms of the documents creating or offering evidence of the matters (The
Company must insert matters or delete this exception.):

	 	a.	 	The following easements as shown by plat recorded in Cabinet
A, Slide 10398, Deed Records of Tarrant County, Texas:
	 
	 	 	 	A variable width drainage and utilities easement across the
Northeast property corner
	 
	 	 	 	A fifty foot (50') wide drainage easement across the Northeast portion of the property
	 
	 	 	 	A variable width sanitary sewer easement along the Northeast side(s) of the property
	 
	 	 	 	A thirty foot (30') wide sanitary sewer easement across the Northwest portion of the property

B-ii 

 

SCHEDULE B

(Continued)

			
	File Number: 05-12755
	 	Policy Number: 7210043-36145

A
variable width flood plain easement across the Westerly portion of the property

A
twenty-five foot (25') wide sanitary sewer easement off the
South property line 

A
variable width flowage easement across the Southwest corner of the property 

A
ten foot (10'), changing to fifteen foot (15'), electric
easement off the South property line

Easement
for flood control granted to Tarrant County Water Control Improvement
District No. One, recorded in Volume 2928. Page 430, Deed Records of
Tarrant County, Texas, refiled in Volume 3137, Page 565, Deed Records of Tarrant County, Texas

Easement
for flood control granted to Tarrant County Water Control Improvement
District No. One, recorded in Volume 3746, Page 655, Deed Records of Tarrant County, Texas.

Easement
for permanent sanitary sewer granted to the City of Fort Worth, recorded in Volume 14167, Page 28, Deed Records of Tarrant County, Texas

B-iii 

 

EXHIBIT C

Form of Special Warranty Deed

	 	 	 	 	 
	STATE OF TEXAS

	 	§	 	 
	 

	 	§
	 	KNOW ALL MEN BY THESE PRESENTS:
	COUNTY OF TARRANT

	 	§	 	 

     THAT PIER 1 SERVICES COMPANY, a Delaware statutory trust (“Grantor”), for and in consideration
of the sum of Ten and No/100 Dollars cash and other good and valuable consideration paid in hand,
the receipt and sufficiency of which is hereby acknowledged, by                     , (the
“Grantee”), whose address is                      [insert address], HAS GRANTED, BARGAINED,
SOLD and CONVEYED, and by these presents DOES GRANT, BARGAIN, SELL and CONVEY unto Grantee that
certain land situated in Tarrant County, Texas, and described on Exhibit “A” which is attached
hereto and incorporated herein by reference for all purposes, together with all buildings,
structures, fixtures and improvements located thereon and all of Grantor’s right, title and
interest in and to all highways, streets, roads, easements, strips, gores or rights of way and to
all sanitary sewer or other utility capacity and to all appurtenances to such property or in
anywise appertaining thereto (said land, real property, rights, improvements and appurtenances
being herein together referred to as the “Property”).

     This conveyance and the warranties of title herein are expressly made subject only to the
liens, encumbrances, easements and other exceptions set forth on Exhibit “B” attached hereto and
incorporated herein by this reference for all purposes to the extent the same are valid and
subsisting and affect the Property (the “Encumbrances”).

     TO HAVE AND TO HOLD the Property unto Grantee, and Grantee’s successors and assigns forever,
and Grantor does hereby bind Grantor, and Grantor’s successors, to WARRANT and FOREVER DEFEND, all
and singular the Property unto Grantee and Grantee’s successors and assigns, against every person
whomsoever lawfully claiming or to claim the same or any part thereof, by, through, or under
Grantor, but not otherwise, but subject to the Encumbrances.

     Ad valorem taxes have been paid through the year 2007, and ad valorem taxes for the year 2008
have been prorated and assumed by Grantee.

C-i 

 

     EXECUTED effective as of this                      day of                     , 2008.

	 	 	 	 	 	 	 	 	 
	 	 	GRANTOR:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	PIER 1 SERVICES COMPANY,	 	 
	 	 	a Delaware statutory trusty	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Pier 1 Holdings, Inc.,	 	 
	 	 	 	 	a Delaware corporation,	 	 
	 	 	 	 	its managing trustee	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	Name:
	 	 

	 	 
	 

	 	 	 	Title:
	 	 

	 	 
	 

	 	 	 	 	 	 

	 	 

	 	 	 	 	 
	STATE OF TEXAS

	 	§	 	 
	 

	 	§
	 	 
	COUNTY OF TARRANT

	 	§	 	 

     This instrument was acknowledged before me on                     , 2008, by
                    ,                      of Pier 1 Holdings, Inc., a Delaware corporation, Managing
Trustee of Pier 1 Services Company, a Delaware statutory trust, on behalf of said corporation and
statutory trust.

                                                                                

Notary Public, State of Texas

My Commission expires:                                        

C-ii 

 

EXHIBIT D

Intentionally Deleted

D-i 

 

EXHIBIT E

Blanket Conveyance, Bill of Sale and Assignment

	 	 	 	 	 
	STATE OF TEXAS

	 	§	 	 
	 

	 	§
	 	KNOW ALL MEN BY THESE PRESENTS THAT:
	COUNTY OF TARRANT

	 	§	 	 

     By a Special Warranty Deed (“Deed”) of even date herewith, PIER 1 SERVICES COMPANY, a Delaware
statutory trust (“Assignor”), conveyed to                     , a                     
(“Assignee”), the property (“Real Property”) described on Exhibit A attached hereto and
made a part hereof for all purposes, together with all improvements located thereon.

     It is the desire of Assignor hereby to assign, transfer and convey to Assignee certain
fixtures, fittings, appliances, apparatus, equipment, machinery, contract rights, guarantees,
architectural drawings, plans and specifications, contracts, licenses, permits, registrations and
warranties relating to the ownership, construction, or occupancy of the Real Property or the
improvements, or both, but not including trade names, service marks, copyrights, trademarks,
patents, other intellectual property, trade secrets, phone numbers and the like which are
associated with the business generally known as “Pier 1” or “Pier 1 Imports”, excluding, however,
any personal property owned by employees of the business generally known as “Pier 1” or “Pier 1
Imports” (such properties and assets being hereinafter collectively referred to as the “Assigned
Properties”).

     NOW, THEREFORE, in consideration of the receipt of Ten and No/100 Dollars ($10.00) and other
good and valuable consideration, in hand paid by Assignee to Assignor, the receipt and sufficiency
of which are hereby acknowledged and confessed by Assignor, Assignor does hereby ASSIGN, TRANSFER,
SET OVER, CONVEY and DELIVER to Assignee and Assignee’s successors, legal representatives and
assigns, all of Assignor’s right, title and interest, if any, in and to the Assigned Properties,
including, without limitation, the following:

	 	(i)	 	all fixtures and attached or affixed equipment situated in, on,
or about and used in connection with the operation of the Property
(“Fixtures”);
	 
	 	(ii)	 	to the extent assignable, maintenance agreements, construction
agreements, service agreements, contractors’ bonds, warranties, guaranties,
rights of use, licenses, permits, contracts and other intangible rights held by
the Assignor pertaining to the buildings, improvements, Fixtures, and/or other
properties comprising the Real Property;
	 
	 	(iii)	 	all master keys and master security cards to the Real Property
in Assignor’s possession;
	 
	 	(iv)	 	the furniture and equipment listed on Exhibit B
attached hereto; and

E-i 

 

	 	(v)	 	all furniture and equipment located on the Terrance Floor of
the building (i.e., the cafeteria, kitchen and fitness room) as described in
the Real Estate Purchase Agreement between the parties dated March ___, 2008.

     TO HAVE AND TO HOLD the Assigned Properties unto Assignee and Assignee’s successors, legal
representatives and assigns, forever, and Assignor does hereby bind Assignor and Assignor’s
successors, legal representatives and assigns, to WARRANT and FOREVER DEFEND, all and singular,
title to the Assigned Properties unto Assignee and Assignee’s successors, legal representatives and
assigns, against every person whomsoever lawfully claiming or to claim the same or any part
thereof, when the claim is by, through or under Assignor, but not otherwise.

     This Blanket Conveyance, Bill of Sale and Assignment and the provisions herein contained will
be binding upon and inure to the benefit of the Assignee and the Assignor and their respective
successors and assigns.

     EXECUTED the                      day of                     , 2008.

	 	 	 	 	 	 	 	 	 
	 	 	ASSIGNOR:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	PIER 1 SERVICES COMPANY,	 	 
	 	 	a Delaware statutory trust	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Pier 1 Holdings, Inc.,	 	 
	 	 	 	 	a Delaware corporation,	 	 
	 	 	 	 	its managing trustee	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	Name:
	 	 

	 	 
	 

	 	 	 	Title:
	 	 

	 	 
	 

	 	 	 	 	 	 

	 	 

E-ii 

 

EXHIBIT F

Form of Updated Certificate

SELLER’S CERTIFICATION OF

REPRESENTATIONS AND WARRANTIES

     THIS SELLER’S CERTIFICATION OF REPRESENTATION AND WARRANTIES (this “Certificate”) is made as
of                     , 2008, by PIER 1 SERVICES COMPANY, a Delaware statutory trust (“Seller”).

RECITALS

     A. Pursuant to the terms of that certain Real Estate Purchase Agreement dated as of the                      day
of                     , 2008 (the “Agreement”), Seller agreed to sell to                     
(“Buyer”) that certain real property located at 100 Pier 1 Place (the “Property”), all as more
particularly described in the Agreement. Initially capitalized terms not otherwise defined herein
shall have the respective meanings ascribed to such terms in the Agreement; and

     B. The Agreement requires, inter alia, that, as a condition precedent to Buyer’s obligations
under the Agreement, Seller shall execute and deliver this Certificate at Closing.

CERTIFICATION

     NOW, THEREFORE, in consideration of the foregoing recitals, the purchase and sale of the
Property and other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, Seller hereby certifies as follows:

     1. The foregoing recitals are true and incorporated into this Certificate the same as though
re-stated herein in full.

     2. Seller hereby re-states, acknowledges and confirms the continuing validity as of the date
hereof and the enforceability and reasonableness of and right of Buyer to rely upon each and all of
Seller’s representations and warranties as contained in Paragraphs 10 and 11 of the Agreement, none
of which has been modified, amended, qualified, limited, restricted, withdrawn, revoked, canceled,
or in any other way made ineffective or inapplicable, except as otherwise stated in Paragraphs 10
and 11 of the Agreement or except as Buyer has notified Seller, or Seller has notified Buyer, or
Buyer has learned of any inaccuracies in any respect and Buyer has waived such inaccuracies.

[SIGNATURE ON FOLLOWING PAGE]

F-i 

 

     EXECUTED AND DELIVERED as of the date first stated above.

	 	 	 	 	 	 	 	 	 
	 	 	SELLER:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	PIER 1 SERVICES COMPANY,	 	 
	 	 	a Delaware statutory trust	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Pier 1 Holdings, Inc.,	 	 
	 	 	 	 	a Delaware corporation,	 	 
	 	 	 	 	its managing trustee	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	Name:
	 	 

	 	 
	 

	 	 	 	Title:
	 	 

	 	 
	 

	 	 	 	 	 	 

	 	 

F-ii 

 

SCHEDULE 10

List of Litigation and Obligations

Pier 1 Imports Services Company v. Tarrant Appraisal District (2006)

	 	 	 
	Court:

	 	Tarrant County District Court, TX
	 
	Date Filed:

	 	8/29/06
	 
	Description:

	 	Pier 1 challenged the appraised value the Tarrant Appraisal
District (TAD) placed on the Pier 1 corporate headquarters
property for the 2006 tax year.  TAD conducted a hearing on
07/05/06 and failed to reduce the appraised value of the
property. 
	 
	Status:

	 	8/31/06, Complaint served. 10/05/06, Defendant has filed an
Answer. On 02/26/08, the parties agreed to settle this
lawsuit at an agreed value of $65,623,260 for the 2006 tax
year. An Agreed Judgment is being prepared for the parties’
signatures. As a part of the settlement of this lawsuit and
the 2007 TAD lawsuit below, the parties have signed a
stipulation of agreed value of $66,092,936 for the 2008 tax
year. The parties will sign a settlement and waiver for the
agreed 2008 value.
	 
	Attorney:

	 	Kelley B. Hill
	 

	 	Pennington Hill, L.L.P.
	 

	 	1010 Mustang Drive, Suite 101
	 

	 	Grapevine, TX 76051
	 

	 	(817) 488-3600 / Fax (817) 488-4545

Pier 1 Imports Services Company v. Tarrant Appraisal District (2007)

	 	 	 
	Court:

	 	County District Court, TX
	 

	Date Filed:

	 	9/4/07
	 
	Description:

	 	Pier 1 challenged the appraised value the Tarrant Appraisal
District (TAD) placed on the Pier 1 corporate headquarters
property for the 2007 tax year.  TAD conducted a hearing on
07/11/07 and failed to reduce the appraised value of the
property. 
	 
	Status:

	 	9/4/07, lawsuit was filed. 10/9/07, Received copy of original
Answer by TAD.  On 02/26/08, the parties agreed to settle
this lawsuit at an agreed value of $65,623,260 for the 2007
tax year. An Agreed Judgment is being prepared for the
parties’ signatures. As part of the settlement of this
lawsuit and the 2006 TAD lawsuit above, the parties have
signed a stipulation of agreed value of $66,092,936 for the
2008 tax year. The parties will sign a settlement and waiver
for the agreed 2008 value.

F-i 

 

	 	 	 
	Attorney:

	 	Kelley B. Hill
	 

	 	Pennington Hill, L.L.P.
	 

	 	1010 Mustang Drive, Suite 101
	 

	 	Grapevine, TX 76051
	 

	 	(817) 488-3600 / Fax (817) 488-4545

In addition to the above matters, Buyer acknowledges that Seller has disclosed to Buyer the
following:

	 	•	 	The Property may become part of the Trinity River Vision Project or variations of that
project.
	 
	 	•	 	The Property is within the boundaries of the Fort Worth Public Improvement District No.
1 and Tarrant County Water Control Improvement District No. 1 and is subject to the
authority of those districts as they may exist from time to time.
	 
	 	•	 	The whole or a portion of the Property may lie within one or more floodplains of the
Trinity River.
	 
	 	•	 	The whole or a portion of the Property may lie within an abandoned oxbow of the Trinity
River and the subsurface of the Property consist of fill materials placed there by the Army
Corp of Engineers during construction of the Trinity River levies and associated river
channel work after the floods of the mid 20th century.
	 
	 	•	 	One or more underground storage tanks have been removed from the property by Seller and
its predecessor in interest.
	 
	 	•	 	The Property has one or more subsurface sumps and pumps to handle subsurface water.
	 
	 	•	 	The Property is encumbered by Deed of Trust, Security Agreement, and Assignment of Rents
dated May 31, 2007, from Pier 1 Services Company to James C. Chadwick, Trustee, securing
the payment of one note of even date therewith in the original principal sum of
$2,000,000.00, payable to Bank of America, N.A., said Deed of Trust filed for record under
Clerk’s File No. D207188261, Deed Records of Tarrant County, Texas. This Deed of Trust
will be released at closing.

F-ii

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