Document:

TECHNOLOGY
TRANSFER AGREEMENT

 

THIS
AGREEMENT made as of the 1st day of February, 2015

 

BETWEEN:

 

Scott
C. Hohulin (“Scott”) and Scott Hohulin Family 2014 Irrevocable Trust (“Trust”), an inventor and resident
of Wildomar, California with an address for notice hereof at Knudsen Law Office, 1600 Iowa Avenue, Suite 250, Riverside, CA 92507

 

(collectively
the “Owner”)

 

AND:

 

Heliosource,
Inc. a Nevada company with an address for notice hereof at 600-1090 West Georgia Street, Vancouver, BC V6E 3V7

 

(“Purchaser”)

 

WHEREAS:

 

	A.	Owner
    has developed solar technology covered by the patent(s) set forth in Schedule “A” hereto (all collectively the
    “Technology”) with substantially greater solar energy (greater electromagnetic range) conversion efficiency than
    present market devices and with substantially greater resistance to damage;
	 	 
	B.	Scott
    is the inventor of the Technology and the Trust is the owner of the Technology. Scott affirms that he has transferred all
    of his right, title and interest in the Technology to Trust;
	 	 
	C.	Owner
    has agreed to transfer and assign all legal and registered title in and to the Technology in consideration of the payments
    stipulated in this Agreement;

 

NOW
THEREFORE, in consideration of the premises and the sum of US$10.00 now paid by Purchaser to Owner (the receipt and sufficiency
of which is hereby acknowledged) and in consideration of the mutual covenants and obligations herein set forth, the parties hereto
covenant and agree as follows:

 

ARTICLE
1

 

SALE
AND PURCHASE OF TECHNOLOGY

 

1.01
In consideration of: (i) the shares and payments described in section 1.03 below; (ii) payment from the section 1.02 capital raise
by February 28, 2015 to Trust of $100,000 for direct payment of legal and business expenses per instructions from Trust; (iii)
payment from the section 1.02 capital raise by February 28, 2015 to Trust of $150,000 non-refundable purchase fees; and (iv) the
promises and covenants of Purchaser contained herein, Trust agrees to transfer and assign to Purchaser as provided in Section
1.02 below 100%, constituting the entirety, of the legal, beneficial and registered title in and to the Technology effective the
date of such investment including, without limitation, any developments, improvements, or derivatives thereof. Trust acknowledges
and confirms that 100% of the legal and beneficial right, title and interest in and to the Technology shall be vested in and belong
to Purchaser free and clear of all liens, charges, encumbrances, interests of any party or parties (including free of any interests
of Trust or Scott except for claims pursuant to this Agreement) or any adverse claims whatsoever to the Technology. Trust and
Scott covenant that should any interest in the Technology hereafter come into the Trust’s or Scott’s hands, respectively,
that all such title of whatsoever nature was, is, or will be (as to any part coming into the possession or control by Owner) held
by Owner in trust for Purchaser.

 

    	1

    	 

    

 

1.02
Purchaser agrees to make available on or before February 28, 2015, an investment of $500,000 to be used by Scott and Trust for
the development and production of a Technology prototype (the “Technology Prototype”) by the Trust and Scott at Purchaser’s
expense. Trust and Scott anticipate that development of the Technology Prototype should require approximately 6 months at an approximate
cost of $250,000, but that time period may extend to one year at an approximate ultimate cost of up to $1,000,000, to be provided
by Purchaser, for all costs including equipment, material, facilities and testing protocols. Further, on or before February
28, 2015, the Trust shall place in trust with Purchaser’s counsel patent assignments sufficient to transfer the Technology
on all patent registers to be filed on request of, and at the cost of, the Purchaser following: (i) effecting the $500,000 initial
investment described above; and (ii) delivery to the Trust of the shares set forth in section 1.03. Upon assignment of the Technology,
the Trust and Scott shall effect all such assistances as the Purchaser may require extending the patent coverage of the Technology
as well as the number of jurisdictions in which the Technology is patented.

 

1.03
Upon the Technology Prototype being independently verified by the Purchaser as achieving solar energy production of 2.5kw or more
per hour per meter squared (or such lesser or greater performance as the Purchaser elects) then the Purchaser shall elect whether
to accept the Technology Prototype and proceed with the Technology and in the event of a favorable election, cause the issuance
to the Trust (or their designees and to each of Scott or the Owner as they may direct) of the following share and cash consideration:

 

	 	(a)	A
    non-dilutable ten percent (10%) of the issued common shares of the Purchaser upon acceptance by the Purchaser of the Technology
    Prototype per this section 1.03 above. The Purchaser at the time of issuing common shares to new subscribers shall issue such
    number of additional common shares to the Trust at $0.01 per share to maintain the Owner’s 10% interest in the Purchaser.
    Such Purchaser common shares shall be convertible to shares of Quest Water Global Inc. (the listed parent company of the Purchaser)
    based upon the valuation of the Purchaser and the market value, less 10%, of Quest common shares on the date of election to
    convert. The Purchaser may elect to issue these Purchaser shares at any time but must issue the same within thirty days of
    acceptance of the Technology Prototype per section 1.03 above;
	 	 	 
	 	(b)	Five
    Million (5,000,000) common shares of Quest Water Global Inc. within thirty days of acceptance of the Technology (with such
    extensions as may be necessitated by regulatory matters);
	 	 	 
	 	(c)	The
    purchase fees described in sections 1.01 and 1.03(d), as applicable, plus an aggregate of eight million dollars ($8,000,000)
    payable as follows:

 

	 	(i)	$2,000,000
    within 120 days of the Purchaser accepting the Technology Prototype per this section 1.03 above;
	 	 	 
	 	(ii)	a
    $6,000,000 five year no interest promissory note delivered with the payment of 1.03(c)(i) above. No installment payments shall
    be required under such note except that 20% of net before tax revenue derived in any manner from the use, sale or licensing
    of the Technology or products incorporating the Technology shall be paid and applied against the note until the earlier of
    payment in full or the five year due date; and

 

	 	(d)	If
    the Technology Prototype has not been verified by the Purchaser on or before the expiration of six month’s following
    execution of this Agreement, then the Purchaser shall continue to pay the Trust $25,000 per month non-refundable purchase
    fees for an additional development period of the earlier of 6 months or the election by the Purchaser whether or not to accept
    the Technology.

 

    	2

    	 

    

 

1.04
Upon the Purchaser or its contracted manufacturer commencing manufacturing of devices (“Devices”) based on the Technology,
or upon the sale or licensing by Purchaser of rights relating to the Technology, then the Purchaser shall pay a royalty to the
Trust on the following terms:

 

	 	(a)	The
    royalty (“Royalty”) shall be in an amount of six (6%) percent of net before tax revenue from: (i) commercial sales
    of Devices with before tax revenue being derived pursuant to generally accepted accounting principles for public companies
    in the USA; and (ii) licensing or royalty fees received relating to the use or sale of the Technology or any portion or aspect
    thereof. For clarity ‘net before tax revenue’ shall mean the bottom line figure on the Purchaser’s GAAP
    audited income statement being the aggregate accounting of all sources of income and all costs reasonably allocable to production
    of Devices or issuance of licenses but prior to accounting for taxes on such net income. The intent of the parties is that
    such Royalty shall be paid to the Trust based upon all forms and types of revenue paid and received arising from any use,
    sale or licensing or other benefit of the Technology received by Purchaser, Quest Water Global, Inc. or any affiliate or related
    party of Purchaser or Quest Water Global, Inc. (collectively, “Affiliate”);
	 	 	 
	 	(b)	The
    Royalty shall commence the annual quarter following the annual quarter in which commercial sales, use, licensing or other
    revenue commences with commercial sales not including beta market tests of not more than 100 Devices and excluding delivery
    of promotional Devices at no cost;
	 	 	 
	 	(c)	The
    Royalty shall be calculated on sales for a relevant quarter and accounted and paid within 45 days of a quarter end;
	 	 	 
	 	(d)	The
    Trust shall have a right to examine the records of the Purchaser and audit the same to verify the Royalty payments. If the
    Royalty payments are 5% or more less than shown by the audit then the Purchaser shall pay the costs of an audit. The Purchaser
    shall cooperate to all reasonable extents to permit a verifiable audit.

 

1.05
Until such time as the investment of section 1.01 has been made, the payments of section 1.03(a) and (b) and section 1.03(c)(i)
have been made and the promissory note of section 1.03(c)(ii) has been paid in full, the Purchaser shall not grant or assign any
right or license in or to the Technology to any person or entity. Further, Purchaser shall forthwith return the Technology to
the Trust by way of settlement of Section 2.02 in the event that the Purchaser shall have failed or refused to pay or deliver
any of the aforesaid consideration. In the event that after the aforesaid prohibition of assignment has ceased then if the Purchaser
shall be desirous of assigning all or substantially all of the Technology (other than normal course licensing on commercially
reasonable terms) then the Purchaser shall notify the Trust in writing not less than 90 days prior to intended assignment for
consultation with the Trust and, if the Trust so elects, a right of first refusal of the Trust to acquire the Technology interest
on terms not less favorable than that being considered by the Purchaser. Further, in the event that Purchaser is desirous of assigning,
conveyance or licensing (other than in the ordinary course on commercially reasonable terms) all or any portion of its rights
in the Technology to any Affiliate, such assignment shall be subject to payment of Royalties by such Affiliate in the same manner
as required in section 1.04 and the Trust shall receive a non-dilutable ten percent (10%) interest in such Affiliate.

 

ARTICLE
2

 

PROPERTY
RIGHTS

 

2.01
Upon fulfillment of sections 1.01 and 1.03 sole and exclusive 100% legal and beneficial right, title and interest in and to the
Technology is fully assigned and vested in Purchaser without any requirement for any further documentation confirming vesting
and the Trust delivers possession of the Technology, free and clear of all liens, charges, encumbrances and adverse claims whatsoever.

 

    	3

    	 

    

 

2.02
In the event that the Purchaser shall effect default of sections 1.01, 1.02 or 1.03 and has not cured such default within thirty
(30) days following written notice from the Trust of such default, then Quest Water Global Inc. shall assign all of its equity
interests in the Purchaser to the Trust as settlement of default.

 

2.03
Trust will, forthwith upon receipt of a written request from Purchaser, and at Purchaser’s cost and expense, do such further
and other things, enter into such further and other agreements and execute and deliver to Purchaser such further and other documents
and instruments as Purchaser may reasonably require to vest title to the Technology in Purchaser, or to record the assignment
of the Technology with any regulators, and to better ensure to Purchaser the use, enjoyment and protection of the Technology.

 

ARTICLE
3

 

POST-ASSIGNMENT
SUPPORT AND ROYALTY

 

3.01
The Trust and Scott will generally assist Purchaser and use their reasonable good faith efforts to facilitate the research and
development of the Technology, the more efficient and economic use of the Technology by Purchaser and the manufacture, marketing,
sale and distribution of products resultant therefrom. The Trust shall be compensated at reasonable commercial rates for all time
and expenses incurred in the provision of such support by Scott or other capable party as advised by the Trust. It is understood
by the Parties that the Scott will be the primary researcher to continue the development of the Technology Prototype.

 

3.02
Trust and Scott will:

 

	 	(a)	provide
    plans and specifications for the Technology Prototype and comprehensive instructions sufficient to permit research and development
    of the Technology Prototype and the manufacture, operation or application of products resultant therefrom; and
	 	 	 
	 	(b)	provide
    ongoing technical, consultative and advisory services in connection with the subject matter of this Agreement as may reasonably
    by requested by Purchaser from time to time;

 

all
at reasonable commercial rates. All work to be performed by Scott following development and acceptance of the Technology Prototype
shall be pursuant to a separate work or employment agreement(s) between Scott and Purchaser.

 

3.03
Upon assignment of the Technology being effective with the completion of sections 1.01 and 1.03 above the Purchaser shall employ
best reasonable efforts to raise four million dollars ($4,000,000) which shall be employed for research and manufacturing of commercial
devices based upon the Technology Prototype.

 

In
the event that the Purchaser fails to raise four million dollars within 120 days of the acceptance of the Technology Prototype
pursuant to section 1.01 and 1.03 then the Trust may elect to terminate this Agreement with not less than 30 days’ notice
of intent to terminate and the transfer described in Section 2.02 shall be made. The Purchaser shall be granted equal time extensions
for delays resulting from failure of performance by the Trust or Scott or parties for which they are accountable and shall be
reasonably granted extensions for delays resulting from third party actions, force majeure or verification problems with the Technology
Prototype.

 

    	4

    	 

    

 

ARTICLE
4

 

IMPROVEMENTS

 

4.01
If, whether with Purchaser’s approval or incidentally or otherwise, Trust (or any agent or any entity in which Trust has
a controlling interest) discovers, acquires or develops any improvements, updates or modifications (collectively “Improvements”)
relating to the Technology, then the Trust shall promptly disclose such to Purchaser and the Trust agrees and acknowledges that
any such Improvements are the trust property of Purchaser and Purchaser shall be exclusively entitled to such Improvements and
shall have legal and beneficial title thereto. All such Improvements, however, shall be included in, and covered by, the provisions
of this Agreement requiring payment of Royalties to Trust.

 

ARTICLE
5

 

DOCUMENTS
LIST

 

5.01
Owner will execute and deliver to Purchaser all deeds, conveyances, bills of sale, assignment agreements and other documents and
instruments as may be necessary to effectively vest good and marketable title in and to the Technology in Purchaser free and clear
of all liens, charges and encumbrances and, without limiting the generality of the foregoing, will execute and deliver immediately
upon demand:

 

	 	(a)	bills
    of sale;
	 	 	 
	 	(b)	assignments
    of trade-marks and trade names in form registrable; and
	 	 	 
	 	(c)	all
    plans, blueprints, programs, technical data and other materials in any way relating to the Technology and all chattels related
    to the same.

 

ARTICLE
6

 

ASSIGNMENT

 

6.01
The Trust or Scott may not assign, transfer, or otherwise dispose of any or all of its rights under this Agreement.

 

6.02
Subject first to section 1.05, thereafter Purchaser may assign, transfer, or otherwise dispose of any or all of its rights to
the Technology to any person without the prior consent of Owner but Purchaser shall be jointly and severally responsible with
such assignee or transferee for the observance and performance of its covenants and obligations under this Agreement, including
payment of Royalties.

 

ARTICLE
7

 

PUBLICATION
AND CONFIDENTIALITY

 

7.01
Trust and Scott acknowledge and agree that they will treat all non-public aspects of the Technology as confidential, will not
compete with the Technology or the Purchaser and that it will not disclose or communicate or cause to be disclosed or communicated
non-public aspects of the Technology to any person except as requested by Purchaser or consented to in writing in advance by Purchaser.
In the event that the Trust or Scott breaches this confidentiality and non-compete provision, the Trust and Scott agree that damages
are not sufficient remedy and that the Purchaser may acquire an injunction as a matter of right. In addition to any other damages
recognized by the courts of applicable jurisdiction, all profits derived by breach shall be accounted to the Purchaser as received
in trust for the Purchaser.

 

    	5

    	 

    

 

ARTICLE
8

 

WARRANTIES

 

8.01
Purchaser represents and warrants to the Trust, with the intent that Trust shall rely thereupon in entering into this Agreement,
that:

 

	 	(a)	Purchaser
    is duly incorporated and validly subsisting under the laws of Nevada, and has the corporate power and capacity to enter into
    this Agreement;
	 	 	 
	 	(b)	Purchaser
    has the legal right and authority to enter into this Agreement, and this Agreement has been approved by requisite corporate
    procedures;
	 	 	 
	 	(c)	the
    entering into and performance of this Agreement and the transactions contemplated herein will not result in the violation
    of any of the terms and provisions of the constating documents of Purchaser, any shareholders’ or directors’ resolution,
    or of any indenture or other agreement, written or oral to which Purchaser may be a party or be bound or to which they may
    be subject or any judgment, decree, order, rule or regulation or any court or administrative body by which Purchaser is bound;
	 	 	 
	 	(d)	this
    Agreement has been duly executed and delivered by Purchaser and constitutes a legal, valid and binding obligation of Purchaser
    enforceable against Purchaser in accordance with its terms.

 

8.02
Trust and, to the extent applicable to Scott, Scott represent and warrant to Purchaser, with the intent that Purchaser shall rely
thereupon in entering into this Agreement, that:

 

	 	(a)	Trust
    and Scott haves the legal right and authority to enter into this Agreement and this Agreement has been duly approved by Trust
    and Scott;
	 	 	 
	 	(b)	the
    entering into and performance of his Agreement and the transactions contemplated herein will not result in the violation of
    any of the terms and provisions of agreements to which Trust or Scott may be subject or any judgment, decree, order, rule
    or regulation or any court or administrative body by which Trust or Scott is bound;
	 	 	 
	 	(c)	this
    Agreement has been duly executed and delivered by Trust and Scott and constitutes a legal, valid and binding obligation of
    Trust and, to the extent applicable to Scott, Scott enforceable against them in accordance with its terms;
	 	 	 
	 	(d)	Trust
    is the 100% legal and beneficial owner of all right, title and interest in and to the Technology free and clear of all mortgages,
    charges, liens, interests of others of any nature, or adverse claims whatsoever;
	 	 	 
	 	(e)	to
    the best of the knowledge, information and belief of Trust and Scott, there are no lawful grounds for invalidating any of
    the Technology;

 

    	6

    	 

    

 

	 	(f)	Trust
    has not granted or agreed to grant any license or entered into any other agreement whereby Trust is obliged to give any other
    person any rights to commercially exploit the Technology;
	 	 	 
	 	(g)	there
    are no claims or actions outstanding or pending against Trust which would impair its ability to sell and transfer the Technology
    to Purchaser.

 

8.03
If any party to this Agreement becomes aware of any threatened or actual infringement of any Technology it will promptly give
notice to the other party.

 

8.04
In the event of an alleged infringement of any right respecting the Technology, Purchaser has the right to prosecute litigation
designed to enjoin infringers of the Technology and Trust and Scott agree to co-operate in respect of any such suits at the cost
and expense of Purchaser.

 

8.05
In the event any complaint alleging infringement or violation is made against Trust or Scott or Purchaser or assignee with respect
to the Technology, the following procedure shall be adopted:

 

	 	(a)	the
    affected party shall promptly notify the other upon receipt of any such complaint and shall keep the other fully informed
    of the actions and positions taken by the complainant and taken or proposed to be taken by the affected party (it being acknowledged
    that the Purchaser shall be the party with the first right to protect the Technology);
	 	 	 
	 	(b)	all
    costs and expenses incurred in investigating, resisting and litigating such a complaint shall be borne entirely by Purchaser;
	 	 	 
	 	(c)	no
    decision or action concerning or governing any final disposition of the complaint shall be taken without full consultation
    with and approval by Purchaser;
	 	 	 
	 	(d)	Purchaser
    may elect to participate formally in any litigation involving a complaint to the extent that the court may permit, but any
    additional expenses generated by such formal participation shall be borne entirely by Purchaser (subject to the possibility
    of recovery or some or all of such additional expenses from the complainant);
	 	 	 
	 	(e)	If
    the complainant is willing to accept an offer of settlement and one of the parties to this Agreement is willing to make or
    accept such offer and the other is not, then the unwilling party shall conduct all further proceedings at its own expense,
    and shall be responsible for the full amount of any damages, costs, accounting of profits and settlement costs in excess of
    those provided in such offer, but shall be entitled to retain unto itself the benefit of any litigated or settled result entailing
    a higher payment of costs, damages, accounting of profits and settlement costs than that provided in such offer.

 

ARTICLE
9

 

NOTICES

 

9.01
All payments, reports and notices or other documents that any of the parties hereto are required or may desire to deliver to any
other party hereto may be delivered only by personal delivery, or by delivery by a nationally recognized overnight courier service,
or e-mail with receipt verified, all postage and other charges prepaid, at the address for such party set forth on the first page
of this Agreement or at such other address as any party may hereinafter designate in writing to the others. Any notice personally
delivered or sent by e-mail shall be deemed to have been given or received on the second business day following the time of delivery.
Any notice sent by overnight courier service as aforesaid shall be deemed to have been received on the date of delivery or first
attempted delivery.

 

    	7

    	 

    

 

ARTICLE
10

 

LEGAL
ADVICE

 

10.01
The parties hereto acknowledge that they have each sought and obtained independent legal advice, and that each of them is responsible
for his or its own legal expenses in connection with the subject matter of this Agreement.

 

ARTICLE
11

 

GENERAL

 

11.01
This Agreement shall be governed by and construed in accordance with the laws of the State of California and the parties hereto
irrevocably attorn to the jurisdiction of the courts of California.

 

11.02
No condoning, excusing or overlooking by any party of any default, breach or non-observance by any other party at any time or
times in respect of any covenants, provisos, or conditions of this Agreement shall operate as a waiver of such party’s rights
under this Agreement in respect of any continuing or subsequent default, breach or non-observance, so as to defeat in any way
the rights of such party in respect of any such continuing or subsequent default or breach and no waiver shall be inferred from
or implied by anything done or omitted by such party, save only an express waiver in writing.

 

11.03
No party hereto shall be held responsible for damages caused by delay or failure when such delay or failure is due to circumstances
beyond its control which cannot reasonably be forecast or provided against, including without limitation war, warlike operations
or hostilities, fires, floods, earthquakes, acts of God, strikes, lockouts or inability to obtain labor or material on time and
it is further understood that each party shall give the other written notice of the occurrence of any of the described events
and make every reasonable effort to resume performance required by this Agreement.

 

11.04
This Agreement sets forth the entire agreement between the parties and supersedes all other oral and written representations,
warranties, and agreements, and no amendments to this Agreement shall be binding unless executed in writing by the parties hereto.

 

	11.05	(a)
    Any controversy, claim, or dispute arising under or relating to this Agreement, or the construction, interpretation, breach,
    termination, enforceability or validity thereof, shall be resolved by arbitration pursuant to the rules of arbitration of
    the American Arbitration Association before a single arbitrator. Such arbitrator shall not have the authority to award any
    remedy or relief that a judge of the superior court of the state of California could not order or grant. The venue for the
    arbitration shall be Riverside County, California. The arbitration proceedings shall be transcribed and the arbitrator’s
    award shall be in writing, include a statement of the arbitrator’s findings of fact and conclusions of law with respect
    to each claim resolved by the arbitrator, and shall be supported by law and substantial evidence. The award of the arbitrator
    may be for an amount of money and/or for specific performance and shall be final, binding and enforceable in any court of
    competent jurisdiction, except that upon petition of any party to the arbitration, the Superior Court of the State of California
    for the County of Riverside shall have the authority to review the transcript of the proceedings of the arbitration and the
    award of the arbitrator and shall have the authority to vacate the arbitrator’s award, in whole or in part, on the basis
    that the award is not supported by substantial evidence or is based upon an error of law.

 

(b)
The parties shall, before the commencement of arbitration proceedings, attempt in good faith to settle their dispute by mediation.

 

(c)
The arbitrator shall be an attorney with at least ten (10) years’ experience in the areas of corporate and business law
or ten (10) years’ experience as a judge.

 

    	8

    	 

    

 

(d)
Each of the parties reserves the right to file with a court of competent jurisdiction an application for temporary or preliminary
injunctive relief, writ of possession, temporary protective order and/or appointment of a receiver on the grounds that the arbitration
award to which the applicant may be entitled may be untimely or rendered ineffectual in the absence of such relief. This shall
include any relief sought pursuant to section 7.01 above.

 

(e)
Judgment upon the award rendered by the arbitrator may be entered in any Court having jurisdiction thereof.

 

(f)
Subject to reasonable limitations imposed by the arbitrator, the parties may obtain discovery in aid of the arbitration to the
fullest extent permitted under law, including California Code of Civil Procedure Section 1283.05. All discovery disputes shall
be resolved by the arbitrator.

 

(g)
In any arbitration or legal proceeding relating to the enforcement or interpretation of this Agreement, the non-prevailing party
shall be required to reimburse the prevailing party, which shall be the party receiving the more significant relief, for its reasonable
costs and attorney’s fees incurred in such action.

 

[The
remainder of this space purposely left blank]

 

    	9

    	 

    

 

11.06
This Agreement may be executed in counterparts and delivered by facsimile, and each counterpart shall be deemed an original and
all together shall constitute one document.

 

IN
WITNESS WHEREOF the parties hereto have executed this Agreement as of the day and year first written above.

 

Heliosource,
Inc.

 

Per:

 

	/s/
    John Balanko	 
	John
    Balanko, President & CEO	 

 

	/s/
    Scott C. Hohulin	 
	Scott
    C. Hohulin, Trustee of the	 
	Scott
    Hohulin Family 2014 Irrevocable Trust	 

 

	/s/
    Scott C. Hohulin	 
	Scott
    C. Hohulin, individually	 

 

Quest
Water Global Inc. hereby attorns to, is subject to and will comply with the provisions of section 1.03(b) and section 2.02 above.

 

Quest
Water Global Inc.

 

Per:

 

	/s/
    John Balanko	 
	John
    Balanko, President & CEO	 

 

    	10

    	 

    

 

SCHEDULE
“A”

 

Patents
and Assets

 

	U.S.
    Application Number:	62/024,305
	Filing
    Date:	07/14/2014
	Name
    of Applicant:	Scott
    C. Hohulin
	Title
    of Invention:	Full
    Spectrum Electro-Magnetic Energy System

 

    	11Exhibit 10.1

 

		Teachers Insurance
    and Annuity Association

    of America

    730 Third Avenue

    New York, NY 10017-3206 

 

February 2, 2015

 

RERC, LLC

6600 Westown Parkway

Suite 260

West Des Moines, IA 50266

Attention: Mr. Kenneth P. Riggs, Jr.

 

		Re:	TIAA Real Estate Account - ERISA Independent Fiduciary

 

Dear Mr. Riggs:

 

This amended and restated letter agreement
(the “Agreement”) sets forth the terms and conditions under which Teachers Insurance and Annuity Association
of America (the “Company”) offers to appoint RERC, LLC, a Situs Company, (“RERC”) to serve
as the Independent Fiduciary, as defined below, under the Employee Retirement Income Security Act of 1974, as amended (“ERISA”)
for the Company’s real estate pooled separate account, called the TIAA Real Estate Account (the “Account”).
The Account is designed primarily for investment by participants in retirement plans qualified under §401(a) and §403(a)
of the Internal Revenue Code of 1986, as amended (“Code”), Code §403(b) plans, and certain individual
retirement annuities under §408 of the Code. As used hereunder, each of Company and Independent Fiduciary shall also be referred
to as a “Party” and collectively, the “Parties.”

 

This Agreement hereby amends and restates in
its entirety the prior letter agreement between the Parties hereto dated November 23, 2011.

 

		1.	Background

 

On October 17, 1996 the Company was granted
a prohibited transaction exemption (“PTE”) from the Department of Labor (“DOL”), PTE 96-76,
Exemption Application No.D-09915, 61 Fed. Reg. 54229 (1996). PTE 96-76 provides an exemption from certain potential prohibited
transactions under § 406 of ERISA and § 4975 of the Code with respect to certain transactions or classes of transactions
involving the Account. Among other features, the Account offers a stand-by liquidity mechanism under which units of interest in
the Account (“Units”) may be purchased or sold by the Company. PTE 96-76 contemplates that various aspects
of the Account’s operation will be subject to the oversight of an Independent Fiduciary (“Independent Fiduciary”) which will be a business organization with substantial real estate investment experience and which will be familiar with the responsibilities
of a fiduciary with respect to benefit plans under ERISA. The Independent Fiduciary will act for the exclusive benefit of the
plans and plan participants who elect to participate in the Account. As used hereunder, the term “Independent Fiduciary”
shall refer to RERC.

    	1

    	

    

Included in PTE 96-76, Section III (e), 61
Fed. Reg. 54230-54231, are descriptions of the responsibilities of the Independent Fiduciary. The valuation procedures and rules
for the Account are described in Exhibit A to this Agreement and in the proposed PTE, 61 Fed. Reg. 15128, pages
15134-15136 (1996).

 

2.         Compensation

 

Compensation for services rendered by RERC
pursuant to this Agreement shall be paid from the Account in the amounts and in accordance with the terms and conditions set forth
in Schedule 1 attached hereto.

 

3.         Duties
and Responsibilities of the Company

 

The Company is an investment manager, as defined
in Section 3(38) of ERISA, with respect to the Account, and shall be primarily responsible, as a fiduciary under ERISA, for all
aspects of the establishment and administration of the Account. The Company alone shall be responsible for making determinations
with respect to the acquisition and disposition of properties by the Account and for all other aspects of the investment of Account
assets, subject to the duties and responsibilities of specifically set forth in PTE 96-76 and paragraph 4 hereof.

 

4.         Duties
and Responsibilities of Independent Fiduciary

 

A.       
The Independent Fiduciary’s duties and responsibilities under this Agreement shall be those set forth in PTE 96-76 and as
described below:

 

(1)       
The Independent Fiduciary will review and approve the valuation of the Account and of the properties held in the Account as outlined
in the proposed PTE, 61 Fed. Reg. 15128, pgs. 15134-15136 and as more specifically described in the valuation procedures and rules
which have been adopted for the Account by the Company (the “Valuation Procedures and Rules”) and which shall
be subject to the approval of the Independent Fiduciary. A current copy of the Valuation Procedures and Rules for the Account
is attached hereto as Exhibit A.

 

(2)       
The Independent Fiduciary will approve the appointment of all independent appraisers retained by the Company to perform periodic
valuations of Account properties. For this purpose, the Company will forward to the Independent Fiduciary information provided
to the Company with respect to the background, education and experience of each such independent appraiser.

 

(3)       
The Independent Fiduciary may require an appraisal in addition to those conducted by an independent appraiser appointed as provided
in clause (2) above, when it believes that the characteristics of a particular property have changed materially or with respect
to any property where it deems an additional appraisal to be necessary or appropriate in order to assure a correct Account valuation.
The Independent Fiduciary will perform such reviews of Account properties as it may determine to be necessary or desirable in
establishing the necessity of such additional appraisals. The Independent Fiduciary shall have the authority to designate independent
appraisers to be hired by the Company to perform any such additional appraisals, but the Company hereby reserves the right to
disapprove any such selection. Accordingly, the Independent Fiduciary shall notify the Company at least fourteen (14) days prior
to the anticipated hiring of any appraiser not previously approved by the Company. Any such appraiser

    	2

    	

    

will be deemed approved by the Company if the Company fails to
object within fourteen (14) days of receipt of the aforesaid notice and the Company will, thereupon, hire such appraiser. The
Company may in its sole discretion withdraw its approval of an appraiser at any time prior to hiring such appraiser for future
appraisals by giving a notice of withdrawal of its approval.

 

(4)        The
Independent Fiduciary shall review purchases and sales of Units (as defined in PTE 96-76, Section IV(P), 61 Fed. Reg. 54233) by
Account participants and the Company to assure that correct Account values are applied. With respect to the foregoing, the Independent
Fiduciary may rely upon the truth, completeness and correctness of information provided to it by the Company or by the independent
auditor designated by the Company with respect to the Account.

 

(5)        If required under PTE 96-76, the Independent
Fiduciary will determine with the Company the appropriate “Trigger Point” (as defined in PTE 96- 76, Section IV(o),
61 Fed. Reg. 54233) relating to the level of the Company’s ongoing ownership of Liquidity Units (as defined in PTE 9676,
Section IV(g), 61 Fed. Reg. 54232) in the Account and the manner in which any reduction of the Company’s participation in
excess of such Trigger Point is to be effected as contemplated under the PTE. If the Independent Fiduciary believes that asset
sales are desirable in order to reduce the Company’s ownership of Units in the Account, then the Independent Fiduciary will
participate in the planning of any such program of sales, including the selection of the properties to be sold and the guidelines
to be followed in making such sales.

 

(6)        In the event of the termination of the Account
as described in PTE 96-76, Section III(e)(10) and (11), 61 Fed. Reg. 54231, the Independent Fiduciary will approve the sale of
Account properties and supervise Account operation during the “Wind Down” period (as defined in PTE 96-76, Section
IV(q), 61 Fed. Reg. 54233). Such period will commence with the Company’s notice to Account participants of its termination
of the Account and will end on the date that no Units are held by any Participant and, if applicable, Participating Plans (as
such terms are defined in PTE 96-76, Section IIII, 61 Fed. Reg. 54229 and Section IV(h), 61 Fed. Reg. 54232, respectively).

 

(7)        The Independent Fiduciary will review
and approve the investment guidelines established by the Company for the Account and will monitor the conformity of all property
acquisitions and sales with the requirements of such guidelines.

 

(8)        With respect to any other transaction or
matter involving the Account that is submitted to the Independent Fiduciary by the Company, the Independent Fiduciary will review
said transaction or matter in order to determine whether it is fair to the Account and in the Account’s best interests.

 

(9)        The Independent Fiduciary and management
of the Company, acting on behalf of the Account, may agree to have more frequent communications than required under PTE 96-76
and under this Agreement to discuss the affairs of the Account, including but not limited to the economic conditions impacting
the commercial real estate markets and valuations of the assets and liabilities in the Account and oversight with respect to the
Account’s liquidity position from time to time.

 

B.        In the event that the Company or the DOL or any other governmental agency requires or requests the Independent
Fiduciary to perform additional functions reasonably related

    	3

    	

    

to the type of review described herein, or to undertake duties
with respect to the Account beyond those specifically enumerated herein, these additional duties and functions shall be deemed
to be included among the duties of under this Agreement, provided that:

 

(1)       
The Company requests the Independent Fiduciary to perform such activity in writing; and

 

(2)       
The Independent Fiduciary and the Company determine the nature and amount of any additional compensation that may be appropriate
with respect to such additional duties. If the Independent Fiduciary and the Company are not able to agree upon the nature and
amount of any additional compensation, the Independent Fiduciary and the Company hereby agree to submit any disputed issues to
arbitration conducted in accordance with the rules (“Rules”) of the American Arbitration Association (“AAA”)
then in effect and to be bound by the results thereof; provided, however, that the Independent Fiduciary shall nevertheless
perform the additional duties described above during the time required for a final determination to be made with respect to the
nature and/or amount of any additional compensation that it may receive. Any such arbitration will be conducted before a panel
of three arbitrators selected using the screening process provided in the Rules. The arbitration panel, and not any federal, state
or local court or agency, shall have exclusive authority to resolve any dispute relating to payment of such additional compensation
to the Independent Fiduciary as referenced in this paragraph 4.B.(2). The arbitration panel shall have no power to award non-monetary
or equitable relief of any sort and such panel shall also have no power to award damages inconsistent with the terms of this Agreement.
Judgment on any arbitration award may be entered in any court having jurisdiction over this Agreement.

 

C.        The Independent Fiduciary will meet with
the Company on no less than a quarterly basis to review the activities of the Account and the actions that the Independent Fiduciary
has taken under this Agreement. The Independent Fiduciary will submit to the Company a summary report from time to time as it
may deem necessary or appropriate, but no less frequently than annually. Such report shall be a written report that summarizes
and explains all actions and activities that the Independent Fiduciary has undertaken since the submission of the last such report
or the commencement of its terms, except those actions and activities that the Independent Fiduciary in its judgment deems to
be not material. All or any part of any such report may, after consultation with the Independent Fiduciary, be provided by the
Company to any Account participant or to the DOL or any other governmental agency. The Independent Fiduciary shall maintain appropriate
records of its actions and activities under this Agreement and will allow the Company to review such records during normal business
hours upon reasonable prior request by the Company, and the Company, after consultation with, may provide the results of any such
review to the DOL or to any other governmental agency.

 

D.        The Independent Fiduciary may make all reasonable
inquiries, consult with whomever it reasonably deems necessary, do all acts that are reasonably necessary to the performance of
its duties, and review such Company documents as are reasonably appropriate for carrying out its responsibilities under this Agreement.
All work to be performed, pursuant to this paragraph 4, may be performed during normal business hours at the Company’s Home
Office, 730 Third Avenue, New York, New York 10017-3206 or such other place as may be reasonably designated by the Independent
Fiduciary, including its offices.

    	4

    	

    

5.     Representations, Warranties and Covenants

 

The Independent Fiduciary represents and agrees
that:

 

A.       
The Independent Fiduciary has at least five years of experience with respect to commercial real estate investments.

 

B.        The gross income which is received by the Independent Fiduciary (or any partnership or corporation of which
is a 10 percent or more partner or shareholder) from the Company and its affiliates (as defined in PTE 96-76, Section IV(b),
61 Fed. Reg. 54231-54232) for any fiscal year ending during the term of this Agreement shall not exceed 5 percent of its
annual gross income from all sources for the preceding fiscal year. Such income limitation will include services rendered to
the Account as the Independent Fiduciary under any PTE granted by the DOL. The Independent Fiduciary will provide, on or
before February 15, of each year, a written report to the Company of the gross income it received from the Company in the
prior fiscal year as a percentage of the gross income received during the preceding fiscal year.

 

C.        The Independent Fiduciary shall not (i)
acquire any property from, sell any property to or borrow any funds from, the Company or any of its affiliates during the period
for which it serves as an Independent Fiduciary under this Agreement and for a period of six months thereafter, or (ii) negotiate
any such transaction described in (i) during the period that serves as the Independent Fiduciary.

 

D.        In the event that the DOL requires additional
representations by the Independent Fiduciary, it is agreed that the Independent Fiduciary will make any such reasonably required
representations that are true in fact.

 

6.      
  Independent Status

 

As the Independent Fiduciary, the Independent
Fiduciary shall not be an agent of the Company. In keeping with this status, the Independent Fiduciary shall be free to control
its method of fulfilling its responsibilities within the framework of its obligations to the Participants (and their beneficiaries)
and, if applicable, Participating Plans (as such terms are defined in PTE 96-76, Section IIII, 61 Fed. Reg. 54229 and Section
IV(h), 61 Fed. Reg. 54232, respectively) and to the Company.

 

7.         Fiduciary Standards and Confidentiality

 

A.       
Fiduciary Standards

 

(1)       
Notwithstanding any other provision of this Agreement, it is understood that the Independent Fiduciary will act as a fiduciary,
as defined in ERISA, with respect to the Participants and their beneficiaries (and, if applicable, Participating Plans) that invest
in the Account, and that the Independent Fiduciary will perform its duties under this Agreement for the exclusive benefit of such
Participants, their beneficiaries and Participating Plans and in conformity with the legal requirements imposed upon it by ERISA.

 

(2)       
It is understood that the Independent Fiduciary will not unnecessarily engage in any activity in connection with this appointment
that is adverse to the interest of the

    	5

    	

    

Company. The Independent Fiduciary may provide similar independent
fiduciary services with respect to other benefit plans subject to ERISA; provided, however, that the Independent
Fiduciary does not use or disclose in such relationships Confidential Information (as defined below) obtained by the Independent
Fiduciary in the course of providing services under this Agreement.

 

(3)       
Upon termination of this Agreement, the Independent Fiduciary will disclose to the Company all material in its possession that
has been released to it by the Company or produced pursuant to this Agreement. Such material may be retained by the Independent
Fiduciary if it deems such retention to be necessary to protect its interests or the interests of the Participants and their beneficiaries
(and, if applicable, Participating Plans) that have invested in the Account. If the Independent Fiduciary retains any such material,
it shall promptly notify the Company in writing of such action. The aforesaid notice shall include an itemized list of all retained
documents and other materials. Upon receipt of the aforesaid notice, or at any time thereafter, the Company may at its option,
require that the Independent Fiduciary deliver all such retained material to the person who succeeds to its position as Independent
Fiduciary. However, the Independent Fiduciary may retain any materials that it deems necessary to protect its interests, provided
that copies of said materials are furnished to either the Company or the Independent Fiduciary’s successor as Independent
Fiduciary, upon request.

 

B.       
Confidentiality. In connection with this Agreement, certain Confidential Information (as defined below) regarding each Party (such
party a “Disclosing Party”) may be disclosed to the other Party (such party a “Recipient Party”)
in order for each Party to perform their respective obligations hereunder.

 

(1)       
Definitions. For purposes hereof, the definitions of Company and Independent Fiduciary shall be deemed to include any parent,
subsidiary, affiliate of, or entity under common control with any entity constituting the Company or Independent Fiduciary. “Affiliates”
shall mean a business entity now or hereafter controlled by, controlling or under common control with either Company or Independent
Fiduciary. “Control” exists when an entity owns or controls directly or indirectly 50% or more of the outstanding
equity representing the right to vote for the election of directors or other managing authority of another entity. “Representatives”
shall mean any of TIAA’s or Independent Fiduciary’s directors, officers, employees, agents or advisors (including,
without limitation, attorneys, accountants and contractors or consultants retained by either Party).

 

(2)       
Confidential Information. As used herein, Confidential Information shall mean any of the following information regarding either
TIAA or Independent Fiduciary disclosed before or after the date hereof (“Confidential Information”):

 

a.          any data or information that is competitively sensitive and not generally known to the public, including but not limited to, products,
business and marketing plans, marketing strategies or techniques, financial information, pricing, operations, vendor relationships,
customers or customer relationships, customer profiles, sales estimates, trade secrets and internal performance results relating
to the past, present or future business activities of Independent Fiduciary or TIAA or any of their customers, subsidiaries, or
third party vendors;

 

b.          any scientific or technical information, concepts, design, process, procedure, formula, or improvement that is commercially valuable,
not generally known to the

    	6

    	

    

public and secret in the sense that its confidentiality affords
TIAA or Independent Fiduciary a competitive advantage over its competitors; and

 

c.         
all documentation, media, reports, data, specifications, computer hardware or software, computer programs, source code, object
code, flow charts, mappings, interfaces, databases, inventions, engineering and laboratory notebooks, drawings, diagrams, schema,
prototypes and models, know-how, show-how, trade secrets and any other tangible manifestation (including data in computer or other
digital format) of any of the foregoing, whether or not patentable or copyrightable; and

 

(3)       
Confidentiality Obligations. Except as expressly authorized by prior written consent of the Disclosing Party, the Recipient Party
shall:

a.         
limit access to and use of any Confidential Information received by it to its Representatives who have a need-to-know in connection
with evaluating the Opportunity, and only for use in connection therewith;

b.         
advise its Representatives having access to the Confidential Information of the proprietary nature thereof and of the obligations
set forth in this Agreement;

c.          
take appropriate action by agreement with its Representatives having access to the Confidential Information to fulfill its obligations
under this Agreement;

d.         
safeguard all Confidential Information received by it using a reasonable degree of care, but not less than that degree of care
used by it in safeguarding its own similar information or material; and

e.         
not disclose or disseminate any Confidential Information received by it to third parties not authorized hereunder without the
prior written consent of the Disclosing Party.

 

(4)       
Return of Confidential Information. Upon the request of the Disclosing Party, the Recipient Party shall collect and surrender
(or confirm the destruction or non-recoverable data erasure of) all Confidential Information and all memoranda, notes, records,
drawings, manuals, records, and other documents or materials (and all copies of same, including “copies” that have
been converted to computerized media in the form of image, data or word processing files either manually or by image capture)
based on or including any Confidential Information, and such destruction shall be certified in writing to the Disclosing Party
by an authorized officer of the Recipient Party supervising such destruction; provided, however, that RERC may retain such limited
media and materials containing Confidential Information of the Company for customary archival and audit purposes (including with
respect to regulatory compliance).

 

(5)       
Exceptions. Notwithstanding anything herein to the contrary, no obligation or liability shall accrue hereunder with respect to
any Confidential Information that:

a.         
was in the public domain prior to the date of this Agreement or subsequently came into the public domain through no act of the
Recipient Party;

b.         
was lawfully received by the Recipient Party from a third party free of any obligation of confidentiality to such third party;

c.         
was already in the lawful possession of the Recipient Party prior to receipt thereof from the Disclosing Party;

d.         
is required to be disclosed in a judicial or administrative proceeding, or as otherwise required to be disclosed by law; provided,
however, the Recipient

    	7

    	

    

Party shall give as much advance notice (unless prohibited by law)
of the possibility of such disclosure as practicable so the Disclosing Party may attempt to stop such disclosure or obtain a protective
order concerning such disclosure with Recipient Party’s reasonable assistance, at Disclosing Party’s expense;

e.         
was independently developed by the Recipient Party without using or referring to the Disclosing Party’s Confidential Information;
or

f.          
is disclosed by the Recipient Party in accordance with prior written approval of the Disclosing Party.

 

(6)       
No Rights in Confidential Information. This Agreement does not confer any right, license, interest or title in, to or under the
Confidential Information to the Recipient Party and no license is hereby granted to the Recipient Party, by estoppel or otherwise,
under any patent, trademark, copyright, trade secret or other proprietary rights of the Disclosing Party. Title to the Confidential
Information shall remain solely in the Disclosing Party.

 

8.         Personnel with Primary Responsibility;
Successor

 

The Independent Fiduciary agrees that, without
limiting its responsibilities under this Agreement or under ERISA, primary responsibility for the performance of the services
contemplated under this Agreement shall be assigned to Kenneth P. Riggs, Jr., and that the Independent Fiduciary will use its
best efforts to assure that Kenneth P. Riggs, Jr. continues to act in such capacity during the term of this Agreement. In the
event that Kenneth P. Riggs, Jr. does not, for any reason, continue to serve in such capacity, the Independent Fiduciary agrees
that it will assign primary responsibility for the duties contemplated under this Agreement to a senior employee of the Independent
Fiduciary of similar experience and ability (the “Successor”). Any Successor shall be subject to the written
approval or rejection by the Company (which approval or rejection shall be made by the Company in its sole discretion) within
45 days of the Company’s receipt of written notice from the Independent Fiduciary of the Successor. Any such Successor will
be deemed approved by the Company if the Company fails to reject the Successor within such 45 day period.

 

9.         Effective Date/Termination Notice

 

A.        The term of the Agreement shall become effective on March 1, 2015.

 

B.        The Independent Fiduciary’s appointment shall commence on the date this Agreement becomes effective for a term extending
through February 28, 2018, and shall be renewable by the Company, from time to time, and without limitation on the number of renewals,
for additional three (3) year terms. The Company shall delegate to a special subcommittee of the Company’s Investment Committee
(the “Subcommittee”) the sole power to renew any such appointment and the Subcommittee shall not renew the
appointment if forty percent (40%) of the Subcommittee members disapprove of such renewal. Upon expiration of the Independent
Fiduciary’s appointment without renewal this Agreement shall terminate.

 

C.        
The Independent Fiduciary may terminate this Agreement at any time but must give at least 180 days prior written notice to the
Company. The Company must terminate this Agreement and the Independent Fiduciary’s appointment prior to the expiration of
the term of its appointment if a majority of the Subcommittee members determines that: (1) the

    	8

    	

    

Independent Fiduciary has breached any representation set forth
in paragraph 5 above; (2) that the Independent Fiduciary has failed to carry out its responsibilities under this Agreement in
an effective manner, or is unable to do so; or (3) that a merger or restructuring of the Independent Fiduciary with or into another
entity may cause a conflict of interest that shall impair the Independent Fiduciary’s ability to carry out its responsibilities
under this Agreement in an effective manner. In addition, this Agreement shall be terminable, at the Company’s sole option,
if (i) the Independent Fiduciary ever ceases to be a legal entity, whether through merger, acquisition or otherwise, or (ii) the
Independent Fiduciary shall ever be owned directly by an ‘Affiliate’ (as such term is defined in PTE 96-76) of TIAA.
In the event that the Independent Fiduciary’s term shall terminate as described in this paragraph 9C., the Independent Fiduciary
shall be compensated only for services performed by it prior to the date of such termination.

 

D.       
Unless otherwise expressly provided herein, any notice, demand or request under this Agreement shall be deemed to have been properly
given and served by depositing the same in First Class U.S. Mail, addressed as provided herein, postpaid and registered or certified
with return receipt requested. Any such notice, demand or request shall be effective upon being deposited in such certified First
Class U.S. Mail. However, the time period in which a response or action to any such notice, demand or request must be given or
taken shall commence to run from the date of receipt on the return receipt of the notice, demand or request by the addressee thereof.
Rejection or other refusal to accept or the inability to deliver because of changed address of which no notice was given shall
be deemed to be receipt of the notice, demand or request.

 

E.        
Notice to the Company shall be addressed to Ms. Margaret Brandwein, Managing Director, Teachers Insurance and Annuity Association
of America, 730 Third Avenue, New York, New York 10017-3206, with copies to Mr. Keith F. Atkinson, Senior Director and Associate
General Counsel, and Mr. F. Scott Thomas, Director and Associate General Counsel, Teachers Insurance and Annuity Association of
America, 8500 Andrew Carnegie Blvd., Mail Stop C2-04, Charlotte, North Carolina 28262 (or such other person or persons as the
Company may designate). Notice to the Independent Fiduciary shall be addressed to Mr. Kenneth P. Riggs, Jr., President and CEO,
Real Estate Research Corporation, 6600 Westown Parkway, Suite 260, West Des Moines, IA 50266 (or such other person or persons
as the Independent Fiduciary may designate).

 

10.       Indemnification and Insurance

 

A.       
Subject to the limitations below in clause C of this paragraph 10, the Independent Fiduciary shall be indemnified and saved harmless
by the Account from and against any and all claims of liability arising in connection with the exercise of its duties and responsibilities
to the Account by reason of any act or omission, including all expenses reasonably incurred in the defense of such act or omission,
unless (1) it shall be established by final judgment of a court of competent jurisdiction that such act or omission involved a
violation of the duties imposed by Part 4 of Title I of ERISA on the part of the Independent Fiduciary, or (2) in the event of
a settlement or other disposition of such claim involving the Account, it is determined by written opinion of independent counsel
acceptable to both Parties, that such act or omission involved a violation of the duties imposed by Part 4 of Title I of ERISA
on the part of the Independent Fiduciary.

 

B.        Subject to the limitations below in clause
C of this paragraph 10, the Account shall pay expenses (including reasonable attorneys’ fees and disbursements), judgments,
fines and

    	9

    	

    

amounts paid in settlement incurred by the Independent Fiduciary
in connection with any of the proceedings described above, in advance of the final disposition of such proceedings, provided
that (1) the Independent Fiduciary shall repay such advances to the Account, plus reasonable interest, if it is established
by a final judgment of a court of competent jurisdiction, or by written opinion of independent counsel under the circumstances
described above in clause A of this paragraph 10, that the Independent Fiduciary violated its duties under Part 4 of Title I of
ERISA, and (2) the Independent Fiduciary shall, in the discretion and upon the request of the Company, provide a bond or make
other appropriate arrangements for repayment of advances. Notwithstanding the foregoing, no such advances shall be made in connection
with any claim against the Independent Fiduciary that is made by the Account or the Company, provided that upon the final
disposition of such claim, the expenses (including reasonable attorneys’ fees and disbursements), judgments, fines and amounts
paid in settlement incurred by the Independent Fiduciary shall be reimbursed by the Account to the extent provided above.

 

C.        The indemnification provided under clauses
A and B of this paragraph 10 shall apply only to claims and expenses not actually covered by insurance. The Independent Fiduciary
agrees to maintain professional liability coverage that includes coverage for its responsibilities under this Agreement, with
limits of at least $5 million for errors and omissions, $2 million for general business liability, and a $1 million fidelity bond,
throughout the term of this Agreement.

 

11.       Consent
to and Acknowledgment of Merger

 

Notwithstanding anything to the contrary contained
herein (i) the Company acknowledges that (x) pursuant to that certain Agreement and Plan of Merger, dated as of December 24, 2014
(the “Merger Agreement”), among Situs Group LLC, the direct parent owning 100% of RERC (“Situs”),
Situs Group Holdings Corporation (“Purchaser”) and the other parties thereto, Purchaser, an affiliate of Stone
Point Capital LLC (“Stone Point Capital”), has agreed to acquire Situs and its subsidiaries (including RERC)
(the “Sale”) and (y) for regulatory purposes, the Sale would likely be considered an “assignment”
of this Agreement, requiring the Company’s consent to allow RERC to continue to provide Independent Fiduciary services to
the Company after Stone Point Capital acquires Situs and (ii) accordingly, the Company hereby consents, subject to RERC’s
covenant below, to the assignment of this Agreement in connection with the Sale, waives any breach of, or default under, this
Agreement as a result of such assignment and acknowledges and agrees that this Agreement will continue in full force and effect
following the consummation of the Sale. The parties acknowledge that the services provided by RERC pursuant to this Agreement
shall not change as a result of the Sale. In addition, RERC covenants and agrees that it shall remain a separate and independent
legal entity, whether from Stone Point Capital or any other direct or indirect owner, at all times during the term of this Agreement
and any modifications, amendments, extensions or renewals thereof. RERC acknowledges that Company’s continuing consent to
the assignment of this Agreement is conditioned on this covenant.

 

12.       Entire Agreement

 

This Agreement contains the entire agreement
between the Parties with respect to the subject matter hereof and supersedes any and all prior written, oral or other understandings
with respect to the subject matter hereof. However, where the text of this Agreement contains express reference to PTE 96-76,
or specific paragraphs of PTE 96-76 and the proposed PTE, 61 Fed. Reg. 15128 (1996), and the representations made therein, it
is the intention of the Parties that

    	10

    	

    

PTE 96-76 and the proposed exemption be incorporated in this Agreement
for the purpose of construing the meaning of such express references. This Agreement may not be changed orally or by conduct but
only by an agreement in writing signed by both Parties.

 

13.       No
Waiver

 

Failure to insist upon strict compliance with
any of the terms, covenants, or conditions of this Agreement shall not be deemed a waiver of such term, covenant, or condition,
nor shall any waiver or relinquishment of any right or power hereunder at any one or more times be deemed a waiver or relinquishment
of such right or power at any other time or times.

 

14.       Severability

 

The invalidity or unenforceability any provision
of this Agreement shall in no way affect the validity or enforceability of any other provision.

 

15.       Choice
of Law

 

This Agreement and performance hereunder is
subject to ERISA. However, to the extent that this Agreement and performance hereunder is not governed by ERISA or other applicable
federal law, the laws of the State of New York shall apply without giving effect to any provisions relating to conflict of laws
that would require the laws of another jurisdiction to apply. The choice of law embodied in this paragraph 15 shall be effective
irrespective of the jurisdiction in which any suit, action or proceeding may be instituted.

 

Please signify your acceptance by signing below
and returning a copy of this Agreement to the Company.

 

Sincerely,

 

TEACHERS INSURANCE AND ANNUITY ASSOCIATION OF AMERICA

 

	By: 	/s/ Helen Armbrust
	 	Name: Helen Armbrust
	 	Title: Senior Managing Director

 

Accepted: 

 

RERC, LLC

 

	By: 	/s/ Kenneth P. Riggs, Jr.
	 	Name: Kenneth P. Riggs, Jr.
	 	Title: President

    	11

    	

    

SCHEDULE 1

 

TEACHERS INSURANCE AND ANNUITY ASSOCIATION
OF AMERICA

INDEPENDENT FIDUCIARY COMPENSATION

SCHEDULE FOR THE TIAA REAL ESTATE ACCOUNT

 

The fee payable to RERC during the term of this Agreement shall
be a fixed annual fee of Seven Hundred and Fifty Thousand Dollars ($750,000) for each 12 month period between March 1, 2015 and
February 28, 2018, plus its reasonable out-of-pocket expenses. One quarter of the fee for each such 12 month period set forth
above shall be paid in arrears on the last business day of each calendar quarter, with the first pro rated payment due as of March
31, 2015 and the final pro rated payment due on February 28, 2018.

 

In addition, the fee will be adjusted to reflect changes in the
number of individual properties owned by the Account as compared to the number of individual properties owned as of February 28,
2015 (the “Baseline Level”), which Baseline Level shall be mutually agreed to between the Parties prior to
such date. Thereafter the Baseline Level shall be reset annually on February 1 of each succeeding year during the term of this
Agreement to a level mutually agreed to between the Parties prior to such date.

 

For purposes hereof, an “individual property”
shall mean a property that is appraised on a quarterly basis, regardless of whether the Account reports, for financial statement
purposes, such property as an individual investment. For every increase (decrease) of twenty-five (25) properties from the Baseline
Level, the fee will increase (decrease) by twenty-five thousand dollars ($25,000) on an annualized basis as follows. The fee increase
(decrease), if any, will be assessed as of the first day of each calendar quarter and will be adjusted up (down) by Six Thousand
Two Hundred and Fifty Dollars ($6,250) for every increase (decrease) of twenty-five (25) properties from the Baseline Level through
the term of this Agreement. As an example only, if the Baseline Level was 150 individual properties and as of July 1, 2015, the
Account owned 176 individual properties, the fee would increase by $6,250 for the calendar quarter ending September 30, 2015.
If then, as of October 1, 2015, the Account owned 174 individual properties, the fee would decrease by $6,250 for the calendar
quarter ending December 31, 2015 and overall be the same as the fee for the quarter ended June 30, 2015.

 

Notwithstanding the foregoing, no further payment during any
fiscal year shall be paid to RERC by the Company, the Account or any affiliates thereof if such payment, when aggregated with
all other payments from the Company, the Account or its affiliates to RERC and its affiliates during such fiscal year, would exceed
five percent (5%) of RERC’s annual gross income from all sources during RERC’s preceding fiscal year (the “5%
Limit”). In addition to the covenants set forth in Section 5.B. of the Agreement, the Parties hereto agree to work in
good faith and cooperate reasonably in advance of any payment under this Agreement to ascertain whether the 5% Limit may be reached,
including but not limited to RERC making its independent auditors available for consultation with the Company, upon reasonable
request and with reasonable notice.

 

Direct out-of-pocket documented expenses shall be reimbursed
as incurred and shall be limited to reasonable travel-related expenses, including transportation, hotels, and meals incurred in
the performance of RERC’s duties. RERC shall, however, bear the cost of all operating and administrative expenses relating
to the performance of its obligations and duties under this Agreement.

    	12

    	

    

EXHIBIT A

 

TEACHERS INSURANCE AND ANNUITY ASSOCIATION
OF AMERICA

 

VALUATION PROCEDURES AND RULES

FOR REAL ESTATE ACCOUNT

 

This outline summarizes the basic elements
of the valuation procedures and rules for the Account.

 

Basic Principles

 

1.        The valuation of equity real estate holdings
is not an exact science; it requires appraisals which are independent estimates of market value.

 

A. Sales are the best measure of the value
of equity real estate holdings, but since they don’t occur frequently, appraisals are generally believed to be the best
estimate of value at a given point in time.

 

B. External appraisals are expensive, and
a balance is required between the accuracy of the estimate of value and the cost to the Account of additional appraisals.

 

2.        The Account’s valuation procedures
and rules are under the direct supervision of an Independent Fiduciary and operate within guidelines and limits established by
the Independent Fiduciary.

 

Valuation Procedures for the Account

 

1.        Independent Fiduciary. The valuation
of Account properties is conducted under the supervision of the Independent Fiduciary.

 

A. The valuation procedures and rules will
be approved by the Independent Fiduciary. They cannot be changed without the consent of the Independent Fiduciary.

 

B. The rules will limit the extent to which
a property’s value can change without the prior approval of the Independent Fiduciary.

 

C. The Independent Fiduciary may require a
new independent appraisal of any property at any time.

 

2.        Initial Valuation. The initial
value of each property will be based on an independent appraisal at the time of closing of the purchase (or the contract price
relating to the purchase, if there is no independent appraisal at the time of closing), which may result in a potential unrealized
gain or loss reflecting the difference between the investment’s fair value and its cost basis (which is inclusive of all
expenses relating to purchase, such as acquisition fees, legal fees and expenses, and other closing costs).

 

3.        Scheduled Valuations.

 

A. Independent Appraisals. Each property
will be valued by an independent appraiser at least once per calendar quarter.

    	13

    	

    

(i) The appraisal cycle will be set up so
that properties will be independently appraised in as spread out a pattern as practical over the course of a calendar quarter,
which is intended to result in appraisal adjustments, if any, that happen regularly throughout each quarter and not on one specific
day in each quarter. This will be done by assigning to each property, at the time it is purchased, the month in which its independent
appraisal will occur each year.

 

(ii) The independent appraisers selected
by TIAA must be approved by the Independent Fiduciary.

 

(iii) The following would be among the factors
generally considered in the independent appraisals:

 

		Ÿ	description
                                         and condition of the property

		Ÿ	regional and
                                         local market conditions

		Ÿ	current and
                                         projected occupancy levels

		Ÿ	highest and
                                         best use of the property

		Ÿ	cost approach
                                         sales comparison approach

		Ÿ	income approach
                                         including discounted cash flow analysis

 

B. Quarterly Reviews. TIAA’s
staff will review each quarterly independent appraisal, in conjunction with the Independent Fiduciary, prior to the value reflected
in that appraisal being recorded in the Account.

 

(i) Appraisal assumptions (e.g. discount
rates and rates of inflation) will be reviewed and revised as necessary.

 

(ii) Occupancy levels, cash flow, etc. will
be reviewed as well as regional and local market conditions.

 

C. Accruals. The Accumulation and
Liquidity Unit Values of the Account may change by a daily accrual of projected income and expenses during a given month. The
Annuity Unit values of the Account may change on the last calendar day of each month by the accrual of projected income and expenses
for that month.

 

4.        Special Adjustments. The value
of a given property could be adjusted at any time to reflect any immediate or significant changes in value.

 

5.        Limits and Supervision.

 

A. The Independent Fiduciary receives quarterly
valuation reports from TIAA which detail Account activity. The format of these reports will be developed with the Independent
Fiduciary. The Fiduciary will, therefore, be familiar with Account properties.

 

B. Daily accruals of income and expenses,
as well as incremental adjustments in property value (from quarterly updates), will be reported to the Independent Fiduciary as
they are included in the Unit value calculation.

 

C. Material changes in value (as described
in D. below) will be approved by the Independent Fiduciary prior to inclusion in a Unit Value calculation

    	14

    	

    

D. TIAA cannot, without the prior approval
of the Independent Fiduciary, change the values of one or more properties if such changes would exceed the following limits:

 

(i) The adjustment would result in a 6 percent
increase or decrease in the value of a given property since the last external appraisal of that property;

 

(ii) The adjustments would result in a greater
than 2 percent change in the value of the Account since the prior monthly valuation date; or

 

(iii) The adjustments would result in a greater
than 4 percent change in the value of the Account within any calendar quarter.

    	15

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