Document:

Exhibit 10.3

 

[UNION BANK OF CALIFORNIA LOGO]

 

AUTHORIZATION TO DISBURSE

 

Borrower Name

 

Simpson Manufacturing Co.,
Inc., a Delaware corporation

 

	
  Borrower
  Address

  4120
  Dublin Boulevard #400

  Dublin, CA
  94568

  	
  Office

  71561

  	
  Loan
  Number

  842-616-975-3    0081-00-0-000

  
	
  Maturity
  Date

  November
  1, 2011

  	
  Amount

  $13,800,000.00

  
				

 

UNION BANK OF CALIFORNIA, N.A.
(“Bank”) is hereby authorized and instructed to disburse the proceeds of that
certain promissory note (“Note”) evidencing the obligation referred to above in
the following manner:

 

Deposit the proceeds of the above referenced obligation
into Borrower’s account No. 7141200458 from time to time and in such amounts
as may be requested verbally or in writing.

 

	
  Renewal
  of obligation number  0081-00-0-000  with a maturity date of  November 1,

  	
   

  	
  $

  	
  13,800,000.00

  
	
   

  	
   

  	
   

  
	
  Total Disbursement(s):

  	
   

  	
  $

  	
  13,800,000.00

  

 

TERMS AND CONDITIONS

 

	
  1.

  	
   

  	
  Bank is
  authorized to charge account number 7141200458 in the name(s) of Simpson
  Manufacturing Co.. Inc. for payments, fees and expenses in connection with
  the Note and all renewals or extensions thereof. If no account number is
  designated, Borrower agrees to pay Bank’s usual and customary fees for
  non-automated processing.

  
	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  Bank
  shall disburse proceeds in the amounts stated above in accordance with the
  foregoing authorization or when Bank receives verbal or written authorization
  to do so from Borrower(s) or any one of the Borrowers, if there are joint
  Borrowers, but not later than the
  final date for availability provided in the loan documents. Bank, at its discretion,
  may elect to extend this date without notice to or acknowledgement by the
  Borrower(s).

  
	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  This
  Authorization and the Note will remain in full force and effect until the
  obligations in connection with the Note have been fulfilled. Unless dated by Bank prior to
  execution, the Note shall be dated by Bank as of the date on which Bank
  disburses proceeds.

  
	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  Notwithstanding
  anything to the contrary herein, Bank reserves the right to decline to
  advance the proceeds of the Note if there is a filing as to the Borrower(s), or any
  of them of a voluntary or involuntary petition under the provisions of the
  Federal Bankruptcy Act or any other insolvency law; the issuance of any attachment,
  garnishment, execution or levy of any asset of the Borrower(s), or any
  endorser or guarantor which results in Bank deeming itself, in good faith
  insecure.

  
	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  The
  Borrower(s) authorizes Bank to release information concerning the Borrower(s)
  financial condition to suppliers, other creditors, credit bureaus and other
  credit reporters; and also authorizes Bank to obtain such information from
  any third party at any time.

  

 

The Borrower(s) by their
execution of this Authorization accept the foregoing terms, conditions and
instructions.

 

Executed
as of: October 29, 2004

 

Borrower(s):

 

Simpson Manufacturing Co.,
Inc., a Delaware corporation

 

	
  By:

  	
    /s/
  MICHAEL J. HERBERT

  	
   

  
	
   

  
	
  Title:

  	
  Chief
  Financial Officer

  	
   

  
				

 

 

	
  [UNION BANK OF CALIFORNIA LOGO]

  	
  East Bay Corporate Banking Group

  
	
   

  	
  200
  Pringle Ave., Suite 260

  
	
   

  	
  Walnut Creek, CA 94596

  
	
   

  	
  (925)
  947-2420

  

 

October 29, 2004

 

Simpson Manufacturing Co., Inc.

Koll Dublin Corporation Center

4120 Dublin Blvd., Suite 400

Dublin, CA 94568

Attn:       Mike
Herbert, Chief Financial Officer

 

Re:                               Third
Amendment (“Amendment”) to the Loan Agreement dated November 6, 2001 (all prior
Amendments, this Amendment, and the Loan
Agreement together called the “Agreement”)

 

Dear Mr.
Herbert:

 

In reference
to the Agreement between Union Bank of California, N.A. (“Bank”) and Simpson Manufacturing
Co., Inc. (“Borrower”), the Bank and
Borrower desire to amend the Agreement. Capitalized terms used herein which are
not otherwise defined shall have the meaning
given them in the Agreement.

 

Amendments to
the Agreement

 

(a)                                     1.1.1 Section The
Revolving-To-Term Loan of the Agreement is hereby amended in its entirety to
read as follows:

 

“Bank will loan to Borrower an
amount not to exceed Thirteen Million Eight Hundred Thousand Dollars
($13,800,000) outstanding in the aggregate at any one time (the
“Revolving-To-Term Loan”). The proceeds of the Revolving-To-Term Loan shall be
used for Borrower’s general working capital purposes. Borrower may borrow,
repay and reborrow all or part of the Revolving-To-Term Loan in accordance with the terms of the Revolving-To-Term
Note (defined below). All borrowings of the Revolving Loan must be made before
November 1, 2006, at which time all unpaid principal and interest of the
Revolving Loan shall be due and payable. The Revolving-To-Term Loan
shall be evidenced by Bank’s standard form of commercial promissory note (the “
Revolving-To-Term Note”). Bank shall enter each amount borrowed and repaid in
Bank’s records and such entries shall be deemed correct. Omission of Bank to
make any such entries shall not discharge Borrower of its obligation to repay
in full with interest all amounts borrowed.

 

As of the
date of this Agreement, the principal amount outstanding under Borrower’s
revolving loan with Bank evidenced by the promissory note dated
October 30, 2002 (“Old Note”) shall be deemed the initial principal amount
outstanding under the Revolving Loan, and
the Old Note is hereby cancelled and superceded by the Revolving Note.”

 

(b)                                    1.1.1 .a Section The
Standby L/C Sublimit of the Agreement is hereby amended in its entirety to read
as follows:

 

“As a sublimit under the
Revolving Loan, Bank shall issue, for the account of Borrower, one or more
irrevocable standby letters of credit (individually, a “Standby L/C”). The
aggregate amount available to be drawn under all Standby L/Cs and the aggregate
amount of unpaid reimbursement obligations under drawn Standby L/Cs shall not
exceed Four Million Dollars ($4,000,000) and shall reduce, dollar for dollar, the maximum amount available
under the Revolving-To-Term Loan. All Standby LVCs shall be drawn on terms and conditions
acceptable to Bank and shall be governed by the terms of (and Borrower agrees
to execute) Bank’s standard form of standby
letter of credit application and reimbursement agreement. No Standby L/C shall
expire more than twelve (12) months from the date of its issuance, and in no
event later than November 1, 2007. At Borrower’s request, Bank will issue L/Cs
on behalf of Borrower’s subsidiaries, including but not limited to: 1) Simpson
Strong-Tie Company Inc.; 2) Simpson Dura-Vent Company, Inc.; and 3) Simpson Strong-Tie,
International Inc., so long as the Borrower executes the Bank’s standard form
for L/C applications and reimbursement agreement.”

 

(c)                                     4.6 Section Tangible Net
Worth of the Agreement is hereby amended in its entirety to read as follows:

 

“Borrower will at all times
maintain Tangible Net Worth of not less than Two Hundred Fifty Million Dollars
($250,000,000), plus 50% of Net Profit (excluding losses) as of each fiscal
year end. “ Tangible Net Worth” means Borrower’s net worth increased by
indebtedness subordinated to Bank and
decreased by patents, licenses, trademarks, trade names, goodwill and other
similar intangible assets, organizational expenses, security deposits, prepaid
costs and expenses and monies due from affiliates (including officers,
shareholders and directors).”

 

(d)                                    5.5 Section Acquisitions
of the Agreement is hereby amended in its entirety to read as follows:

 

1

 

“Borrower will not make any acquisition
or acquire any net assets, other than fixed or capital assets acquired in the
normal course of business, in excess of
Fifty Million Dollars ($50,000,000) in any fiscal year.”

 

Except as
specifically amended hereby, the Agreement shall remain in full force and
effect and is hereby ratified and confirmed. This
Amendment shall not be a waiver of any existing or future default or breach of
a condition or covenant unless specified herein.

 

This Amendment
shall become effective when the Bank shall have received the acknowledgment
copy of this Amendment executed by the
Borrower, all of which must be received by the Bank before October 29, 2004.

 

	
   

  	
  Very truly
  yours,

  
	
   

  	
   

  
	
   

  	
  UNION BANK
  OF CALIFORNIA, N.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Wilson
  Jui

  	
   

  
	
   

  	
   

  	
  Wilson Jui

  
	
   

  	
  Title:

  	
  Credit
  Officer

  
					

 

Agreed and Accepted to this

29 day
of oct, 2004.

 

 

	
  Simpson Manufacturing Co., Inc.

  
	
   

  
	
  By:

  	
  /s/ MICHAEL
  J. HERBERT

  	
   

  
	
  Title: Chief
  Financial Officer

  

 

2

 

 

COMMERCIAL
PROMISSORY NOTE (Base Rate)

 

Terumi Wong / SR / 34028

	
  Debtor Name

   

  Simpson Manufacturing Co., Inc., a Delaware
  corporation

  	
   

  	
   

  
	
  Debtor Address

  

  4120 Dublin Boulevard #400

  Dublin, CA 94568

  	
  Office

  
71561

  	
  Loan Number

  

  842-616-975-3

  	
  

  

  0081-00-0-000

  
	
   

  	
  Maturity
  Date

  

  November 1, 2011

  	
  Amount

  

  $13,800,000.00

  	
   

  

 

	
  $13,800,000.00

  	
  Date October 29, 2004

  

 

FOR VALUE RECEIVED, on November 1, 2011, the
undersigned (“Debtor”) promises to pay to the order of UNION BANK OF CALIFORNIA, N.A.
(“Bank”), as indicated below, the principal sum of Thirteen Million Eight Hundred Thousand and 00/100ths Dollars ($13,800,000.00),
or so much thereof as is disbursed,
together with interest on the balance of such principal from time to time
outstanding, at the per annum rate or rates and at the times set forth below.

 

1.                                          PRINCIPAL AND INTEREST
PAYMENTS.   Debtor shall pay principal in 60
equal consecutive monthly installments, each installment in an amount
sufficient to fully amortize the principal balance by the final maturity date,
beginning December 1, 2006 and continuing on the 1st day of each consecutive month. Debtor shall pay interest on the 1st
day of each month commencing
December 1, 2004 Should interest not be paid when due, it shall become
part of the principal and bear interest as herein provided. All computations of
interest under this note shall be made on the
basis of a year of 360 days, for actual days elapsed. If any interest
rate defined in this note ceases to be available from Bank for any reason, then
said interest rate shall be replaced by the
rate then offered by Bank, which, in the sole discretion of Bank, most closely
approximates the unavailable rate. The availability under this note shall be
reduced on the same day and in the same amount as each scheduled
principal payment.

 

(a)                                  BASE
INTEREST RATE. At Debtor’s option, amounts outstanding
hereunder in minimum amounts of $100,000 shall bear interest at a
rate, based on an index selected by Debtor, which is Bank’s
LIBOR Rate for the Interest Period selected by Debtor, plus the Applicable Margin.

 

Except for changes in the
Applicable Margin, no Base Interest Rate may be changed, altered or
otherwise modified until the expiration of the Interest Period selected by
Debtor. The exercise of interest rate options by Debtor shall be as recorded in
Bank’s records, which records shall be prima facie evidence of the amount
borrowed under either interest option and the interest rate; provided, however,
that failure of Bank to make any such notation in its records shall not discharge Debtor from its obligations to repay in full
with interest all amounts borrowed.
In no event shall any Interest Period extend beyond the maturity date of this
note.

 

To exercise this option, Debtor
may, from time to time with respect to principal outstanding on which a Base Interest Rate is not accruing, and on the expiration of
any Interest Period with respect to principal outstanding on which
a Base Interest Rate has been accruing, select an index offered
by Bank for a Base Interest Rate Loan and an Interest Period by

 

	
  BASENOTE.CAM
  (11/99)

  	
  13763-4-UB06951

  

 

1

 

telephoning an authorized
lending officer of Bank located at the banking office identified below prior to
10:00 a.m., Pacific time, on any Business Day and advising that officer of the selected index, the Interest Period and the
Origination Date selected (which Origination Date, for a Base Interest Rate Loan based on the LIBOR Rate, shall
follow the date of such selection by no more than two (2) Business Days).

 

Bank will mail a written
confirmation of the terms of the selection to Debtor promptly after the selection is made.
Failure to send such confirmation shall not affect Bank’s rights to collect interest at the rate selected. If, on the date of
the selection, the index selected is unavailable for any reason, the
selection shall be void. Bank reserves the right to fund the principal from any source of funds notwithstanding any Base
Interest Rate selected by Debtor.

 

(b)                                VARIABLE
INTEREST RATE. All principal outstanding hereunder which is
not bearing interest at a Base Interest Rate shall bear interest
at a rate per annum of (i) 0.5% less than the Reference Rate
during the Revolving Period and (ii) 0.375% less than the Reference Rate
during the Term Period, which rate shall vary as and when the Reference Rate changes.

 

At any time prior to November
1, 2006, subject to the provisions of paragraph 4 below, Debtor may
borrow, repay and reborrow hereunder so long as the total outstanding at any
one time does not exceed the principal amount of this note.

 

Debtor shall pay all amounts due
under this note in lawful money of the United States at Bank’s East
Bay Corporate Office, or such other office as may be designated by Bank, from
time to time.

 

2.                    LATE
PAYMENTS. If any payment required by the terms of this note shall
remain unpaid ten days after same is due, at the option of Bank, Debtor shall
pay a fee of $100 to Bank.

 

3.                    INTEREST
RATE FOLLOWING DEFAULT.   In
the event of default, at the option of Bank, and, to the extent permitted by
law, interest shall be payable on the outstanding principal under this note at
a per annum rate equal to five percent (5%) in excess of the interest rate
specified in paragraph 1.b, above,
calculated from the date of default until all amounts payable under this note are
paid in full.

 

4.                    PREPAYMENT.

 

(a)               Amounts
outstanding under this note bearing interest at a rate based on the Reference
Rate may be prepaid in whole or in part at any time, without penalty or premium.
Debtor may prepay amounts outstanding under this note bearing interest at a
Base Interest Rate in whole or in part
provided Debtor has given Bank not less than five (5) Business Days prior
written notice of Debtor’s intention to make such prepayment and pays to Bank
the prepayment fee due as a result. The
prepayment fee shall also be paid, if Bank, for any other reason,
including acceleration or foreclosure, receives all or any portion of principal
bearing interest at a Base Interest Rate
prior to its scheduled payment date. The prepayment fee shall be an amount equal to the present value of the
product of: (i) the difference (but not less than zero) between (a) the Base
Interest Rate applicable to the principal
amount which is being prepaid, and (b) the return which Bank could obtain if it
used the amount of such prepayment of principal to purchase at bid price
regularly quoted securities issued by the
United States having a maturity date most closely coinciding with the relevant
Base Rate Maturity Date and such securities were held by Bank until the relevant
Base Rate Maturity Date (“Yield Rate”); (ii)
a fraction, the numerator of which is the number

 

2

 

of days in the period between
the date of prepayment and the relevant Base Rate Maturity Date and the denominator of which is 360; and (iii) the amount of the
principal so prepaid (except in the event that principal payments
are required and have been made as  scheduled under the terms of the
Base Interest Rate Loan being prepaid, then an amount equal to the lesser of (A) the amount prepaid or (B) 50% of the sum of
(1) the amount prepaid and (2) the amount of principal scheduled under the terms of the
Base Interest Rate Loan being prepaid to be
outstanding at the relevant Base Rate Maturity Date). Present value
under this note is determined by discounting the above product to present value
using the Yield Rate as the annual discount factor.

 

(b)                           In no event shall Bank be obligated to make any payment or refund to
Debtor, nor shall Debtor be entitled to any setoff or other
claim against Bank, should the return which Bank could obtain under
this prepayment formula exceed the interest that Bank would have received if no
prepayment had occurred. All prepayments shall include payment of accrued interest on the principal amount so prepaid and shall be applied to
payment of interest before application to principal. A
determination by Bank as to the prepayment fee amount, if any,
shall be conclusive.   In the event of
partial prepayment, such prepayments shall be applied to principal payments in the inverse
order of their maturity.

 

(c)                    Bank shall  provide  Debtor a 
statement of the  amount payable
on  account of prepayment.  Debtor acknowledges
that (i) Bank establishes a Base Interest Rate upon the understanding that it
apply to the Base Interest Rate Loan for the entire Interest Period, and (ii)
Bank would not lend to Debtor without Debtor’s express agreement to pay Bank
the prepayment
fee described above.

 

	
  DEBTOR INITIAL HERE:

  	
  /s/ MJH

  	
   

  

 

5.                                         DEFAULT
AND ACCELERATION OF TIME FOR PAYMENT. Default shall include,
but not be limited to, any of the following: (a) the failure of
Debtor to make any payment required under this note when due; (b) any
breach, misrepresentation or other default by Debtor, any guarantor, co-maker, endorser, or any person or entity other than Debtor providing
security for this note (hereinafter individually and
collectively referred to as the “Obligor”) under any security agreement, guaranty or other agreement between Bank and any Obligor; (c) the insolvency
of any Obligor or the failure of any Obligor generally to pay
such Obligor’s debts as such debts become due; (d) the commencement as to
any Obligor of any voluntary or involuntary proceeding under any laws relating to bankruptcy, insolvency, reorganization,
arrangement, debt adjustment or debtor relief; (e) the assignment by any
Obligor for the benefit of such Obligor’s creditors; (f) the appointment, or commencement of any proceeding for the appointment
of a receiver, trustee, custodian or similar official for all or substantially
all of any Obligor’s property; (g) the commencement of any proceeding for the dissolution or liquidation of any Obligor;
(h) the termination of existence or death of any Obligor; (i) the revocation of any guaranty or subordination agreement
given in connection with this note;
(j) the failure of any Obligor to comply with any order, judgement, injunction,
decree, writ or demand of any court
or other public authority; (k) the filing or recording against any Obligor, or
the property of any Obligor, of any
notice of levy, notice to withhold, or other legal process for taxes other than property taxes; (l) the default by any
Obligor personally liable for amounts owed hereunder on any obligation concerning the borrowing of money; (m) the
issuance against any Obligor, or the
property of any Obligor, of any writ of attachment, execution, or other
judicial lien; or (n) the deterioration of the financial condition of any
Obligor which results in Bank deeming itself, in good faith, insecure. Upon the
occurrence of any such default, Bank, in its discretion, may cease to advance funds hereunder and may declare all
obligations under this note immediately due and payable; however, upon the occurrence of an event of default under d, e,
f, or g, all principal and interest shall automatically become
immediately due and payable.

 

3

 

6.                    ADDITIONAL
AGREEMENTS OF DEBTOR.   If any
amounts owing under this note are not paid
when due, Debtor promises to pay all costs and expenses, including reasonable
attorneys’ fees, (including the
allocated costs of Bank’s in-house counsel and legal staff) incurred by Bank in
the negotiation, documentation and
modification of this note and all related documents and in the collection or enforcement of any amount outstanding
hereunder.   Debtor and any Obligor, for
the maximum period of time and the
full extent permitted by law,   (a) waive
diligence, presentment, demand, notice
of nonpayment, protest, notice of protest, and notice of every kind;   (b) waive the right to assert the
defense of any statute of limitations to any debt or obligation hereunder;
and  (c) consent to renewals and
extensions of time for the payment of any amounts due under this note.  If this note is signed by more than one
party, the term “Debtor” includes each of the undersigned and any successors in interest thereof; all of whose
liability shall be joint and several.  
Any married person who signs
this note agrees that recourse may be had against the separate property of that
person for any obligations hereunder. The receipt of any check or other
item of payment by Bank, at its option,
shall not be considered a payment on account until such check or other item of
payment is honored when presented for
payment at the drawee bank.    Bank may
delay the credit of such payment based upon Bank’s schedule of funds
availability, and interest under this note shall accrue until the funds are
deemed collected.  In any action brought
under or arising out of this note, Debtor and
any Obligor, including their successors and assigns, hereby consent to the
jurisdiction of any competent court
within the State of California, as provided in any alternative dispute
resolution agreement executed between
Debtor and Bank, and consent to service of process by any means authorized
by said state’s law.  The term “Bank”
includes, without limitation, any holder of this note. This note shall be
construed in accordance with and governed by the laws of the State of
California. This note hereby incorporates any alternative dispute resolution
agreement previously, concurrently or hereafter executed between Debtor and
Bank.

 

7.                    DEFINITIONS.     As 
used  herein,  the following 
terms  shall  have 
the  meanings  respectively set forth  below: “Agreement”  shall mean that certain Amended and Restated
Loan Agreement dated as of November 6, 2001,
by and between Debtor and Bank, as at any time amended, modified, extended,
renewed, replaced, or restated from time
to time. “Applicable Margin” shall mean the
following percent per annum for the following periods: (a) During the Revolving
Period, plus (i) three-quarters of
one percent (0.75%) per annum, effective on the first day of the month
following the month in which Bank
receives a financial statement (required by the Loan Agreement) from Debtor
(“Financial Statement”) demonstrating that the ratio of Debtor’s Adjusted Total
Liabilities to Tangible Net Worth for the fiscal quarter covered thereby was
less than 0.50 to 1.00
(provided  that for the purposes of this
definition of Applicable Margin, the term “effective on the first day of the
month following the month in which Bank receives a Financial
Statement”   shall be deemed to be
“effective on the first day of  the Interest Period following the Interest Period in
which Bank receives a Financial Statement” during such time as any outstanding principal balance of this Note bears interest at a
rate based on the LIBOR Rate), (ii) seven-eighths of one percent (0.875%) per annum, effective on the first day of the month
following the month in which Bank receives a Financial Statement from Debtor demonstrating that the ratio of Debtor’s Adjusted
Total Liabilities to Tangible Net Worth for the fiscal quarter covered thereby
was less than or equal to 1.00 to
1.00, but equal to or greater than 0.50 to 1.00 and (iii) one percent (1.0%)
per annum, effective on the first day of the month following the month in which
Bank receives a Financial Statement from Debtor demonstrating that the ratio of Debtor’s Adjusted Total Liabilities to
Tangible Net Worth for the fiscal quarter covered thereby was greater than 1.00
to 1.00;   (b) during the Term Period,
plus (i) seven-eighths of one percent (0.875%) 
per annum, effective on the first day of the month following the month in which Bank receives a
Financial Statement from Debtor demonstrating that the ration of Debtor’s
Adjusted Total Liabilities to Tangible Net Worth for the fiscal quarter covered
thereby was less than 0.50 to 1.00, (ii) one percent (1.0%) per annum, effective on the first day of
the month following the month in which Bank receives a Financial Statement from
Debtor demonstrating that the ratio of Debtor’s Adjusted Total
Liabilities to Tangible Net Worth for the fiscal quarter covered thereby was less than or equal to 1.00 to 1.00,
but equal to or greater than 0.50 to 1.00 and 
(iii) one and one-eighth percent (1.125%) per annum, effective on the
first day of the month following the month in which Bank receives a Financial
Statement from Debtor demonstrating
that the ratio of Debtor’s Adjusted Total Liabilities to Tangible Net Worth for
the fiscal quarter covered thereby was greater than 1.00 to 1.00; provided,
however, that (x) if at any time there exists a default under this note or the
Loan Agreement, or any event has occurred which, with notice or the lapse of
time, or both, would become a default under this note or the Loan Agreement, or (y) if Debtor fails to
deliver any Financial Statement to Bank within the required time period set
forth in the Loan Agreement, then
the ratio of Debtor’s Adjusted Total Liabilities to Tangible Net Worth for the
fiscal quarter covered

 

4

 

thereby shall be deemed to be
greater than 1.00 to 1.00 until such default or unmatured default is cured or
otherwise waived by Bank or such Financial Statement is delivered to Bank, as
the case may be; and provided further, however, that the Applicable Margin shall never
be a negative number. “Base Interest Rate”
means a rate of interest based on the LIBOR Rate. “Base Interest Rate Loan” means amounts outstanding under this note that
bear interest at a Base Interest Rate. “Base
Rate Maturity
Date” means the last day of the
Interest Period with respect to principal outstanding under a Base Interest
Rate Loan. “Business Day” means a day on which Bank is
open for business for the funding of corporate loans, and, with respect to the
rate of interest based on the LIBOR Rate, on which dealings in U.S. dollar
deposits outside of the United States may be carried on by Bank. “Interest
Period” means with respect to funds bearing interest at a rate based
on the LIBOR Rate, any calendar period of 1, 3, 6, 9 or 12 months. In determining an Interest Period, a month
means a period that starts on one Business Day in a month and ends on and includes the day preceding
the numerically corresponding day in the next month. For any month in which there is no such numerically corresponding day,
then as to that month, such day shall be deemed to be the last calendar day of
such month. Any Interest Period which would otherwise end on a non-Business Day
shall end on the next succeeding Business Day unless that is the first day of a month, in which event such
Interest Period shall end on the next preceding Business Day. “LIBOR Rate” means a per annum rate of
interest (rounded upward, if necessary, to the nearest 1/100 of 1%) at which
dollar deposits, in immediately
available funds and in lawful money of the United States would be offered to
Bank, outside of the United States,
for a term coinciding with the Interest Period selected by Debtor and for an
amount equal to the amount of principal covered by Debtor’s interest rate selection, plus Bank’s costs,
including the cost, if any, of reserve requirements. “Origination Date” means the first day of
the Interest Period. “Reference Rate”
means the rate announced by Bank from time to time at its corporate headquarters as its Reference Rate. The
Reference Rate is an index rate determined by Bank from time to time as a means of pricing certain extensions of credit and
is neither directly tied to any external rate of interest or index nor
necessarily the lowest rate of
interest charged by Bank at any given time.

 

	
  DEBTOR:

  
	
   

  
	
  Simpson
  Manufacturing Co., Inc., a Delaware

  
	
  corporation

  
	
   

  
	
  By:

  	
  /s/ MICHAEL
  J. HERBERT

  	
   

  
	
  Title:

  	
  Chief
  Financial Officer

  	
   

  
				

 

5Exhibit
10.4

 

2600 INTERNATIONAL
STREET, COLUMBUS OHIO

 

PURCHASE AND SALE
AGREEMENT AND JOINT ESCROW INSTRUCTIONS

 

between

 

EVERETT JOHNSTON,
BARCLAY SIMPSON, RICHARD PHELAN, ESTATE OF TYE

GILB, JUDY OLIPHANT, DOYLE NORMAN, AMY SIMPSON, JULIE SIMPSON,

ELIZABETH SIMPSON MURRAY, STEVE EBERHARD, STEVE LAMSON, RICHARD

PERKINS, THOMAS FITZMYERS AND SIMPSON INVESTMENT COMPANY, A

CALIFORNIA GENERAL PARTNERSHIP, AS SELLERS

 

and

 

SIMPSON
MANUFACTURING CO., INC.,

AS PURCHASER

 

August 10, 2004

 

 

PURCHASE AND SALE
AGREEMENT AND JOINT ESCROW INSTRUCTIONS

 

THIS PURCHASE AND SALE AGREEMENT AND JOINT ESCROW
INSTRUCTIONS (this “Agreement”) is made as of the 10th day of August, 2004 (the
“Effective Date”), by and between Everett Johnston, Barclay Simpson, Richard
Phelan, Estate of Tye Gilb, Judy Oliphant, Doyle Norman, Amy Simpson, Julie
Simpson, Elizabeth Simpson Murray, Steve Eberhard, Steve Lamson, Richard
Perkins, Thomas Fitzmyers and Simpson Investment Company, a California general
partnership, (jointly and severally “Seller”), and SIMPSON MANUFACTURING CO.,
INC., a Delaware corporation (“Purchaser”) with reference to the following
facts.

 

A.            Seller
owns the land and improvements known as 2600 International Street, Columbus,
Ohio.

 

B:            Purchaser
is currently the sole tenant of the land and improvements known as 2600
International Street, Columbus, Ohio, pursuant to a Lease dated April 26, 1995,
that, among other terms, requires tenant to pay all real and personal property
taxes, to pay all utilities, and to pay for replacement cost insurance on the
improvements.

 

C.            Seller
has agreed to sell to Purchaser and Purchaser has agreed to buy from Seller the
land and property described in this Agreement in accordance with and upon
satisfaction of the terms and conditions set forth herein.

 

NOW, THEREFORE, in
consideration of the mutual covenants and conditions contained herein, and for
other good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the parties hereto agree as follows:

 

ARTICLE 1

PURCHASE AND SALE

 

1.1           Agreement
of Purchase and Sale.  Subject to the
terms and conditions hereinafter set forth, Seller agrees to sell and convey to
Purchaser, and Purchaser agrees to purchase from Seller, the following:

 

(a)           that
certain tract or parcel of land situated in the City of Columbus, Ohio, more
particularly described in Exhibit A attached hereto and made a part
hereof, together with all appurtenances pertaining to such property, including
all right, title and interest of Seller in and to adjacent streets, or
rights-of-way (the “Land”);

 

(b)           the
buildings, fixtures, and other improvements affixed to or located on the Land
(the “Improvements”);

 

(c)           any
and all of Seller’s right, title, and interest in and to all tangible personal
property located upon the Land or within the Improvements, including, without
limitation, all appliances, carpeting, draperies and curtains, tools and
supplies, and other items of personal property owned by Seller (excluding cash
and any software), located on and used

 

1

 

exclusively in connection with the operation of the Land and the
Improvements (the Personal Property”);

 

(d)           any
and all of Seller’s right, title and interest in and to (i) all assignable
permits, licenses, approvals, and entitlements issued by any governmental
authority in connection with the Land and Improvements and (ii) if, and to the
extent in Seller’s or Seller’s manager’s possession, all plans and
specification pertaining to the Property, including as built plans and any
survey of the Property (collectively, the “Intangibles”).

 

1.2           Property
Defined.  The Land and the
Improvements are hereinafter sometimes referred to collectively as the “Real
Property.”  The Land, the Improvements,
the Personal Property, the Lease and the Intangibles are hereinafter sometimes
referred to collectively as the “Property.”

 

1.3           Purchase
Price.  $3,885,000.00 (“Purchase
Price”).  At Closing, Seller shall credit
Purchaser the amount of $77,800.00 which is the security deposit (the “Security
Deposit”) under the Lease (as defined in Section 3.4) held by Purchaser.

 

1.4           Payment
of Purchase Price.  Purchaser shall
deposit the Purchase Price, as increased or decreased by prorations and
adjustments as herein provided to Title Company as more particularly set forth
in Section 4.3.

 

1.5           Deposit.

 

(a)           On
the expiration of the later of the Title Inspection Period (as hereinafter
defined) and the Inspection Period (as hereinafter defined) (collectively, the “Approval
Date”), Purchaser shall deposit with Land America Title Insurance Company (the “Title
Company”), having its office at One Market Street, San Francisco, California
94111, Attention: Steve Sanders, the sum of Two Hundred Thousand Dollars
($200,000.00) (the “Deposit”) in good funds, either by certified bank or
cashier’s check or by federal wire transfer.

 

(b)           The
Title Company shall hold the Deposit in an interest-bearing account reasonably
acceptable to Seller and Purchaser, in accordance with the terms and conditions
of this Agreement.  All interest on such
sum shall be deemed income of Purchaser.

 

(c)           The
Deposit and all accrued interest shall be distributed in accordance with the
terms of this Agreement.  The failure of
Purchaser to timely deliver the Deposit when due hereunder shall be a material
default, and shall entitle Seller, at Seller’s sole option, to terminate this
Agreement immediately.  Notwithstanding
the foregoing, the Deposit shall be returnable to Purchaser as and to the
extent expressly provided in this Agreement.

 

1.6           Deposit
as Liquidated Damages.

 

(a)           FROM
AND AFTER THE EXPIRATION OF THE APPROVAL DATE, EXCEPT WHERE THIS AGREEMENT
PROVIDES THAT THE DEPOSIT IS TO BE RETURNED TO PURCHASER, IN THE EVENT THE SALE
OF THE PROPERTY AS CONTEMPLATED HEREUNDER IS NOT CONSUMMATED FOR ANY REASON
EXCEPT (I) A DEFAULT UNDER THIS AGREEMENT ON THE PART OF SELLER OR (II) A

 

2

 

TERMINATION OF THIS AGREEMENT PURSUANT TO ARTICLE VII OR (III) THE
FAILURE OF A CONDITION PRECEDENT IN SECTION 4.6, THE DEPOSIT (INCLUDING ALL
INTEREST EARNED FROM THE INVESTMENT THEREOF) SHALL BE PAID TO AND RETAINED BY
SELLER AS LIQUIDATED DAMAGES AND AS SELLER’S SOLE AND EXCLUSIVE REMEDY UNDER
THIS AGREEMENT, AT LAW OR IN EQUITY AS A RESULT OF SUCH DEFAULT OR FAILURE TO
CLOSE.

 

(b)           THE
PARTIES ACKNOWLEDGE THAT SELLER’S ACTUAL DAMAGES IN THE EVENT THAT THE SALE IS
NOT CONSUMMATED WOULD BE EXTREMELY DIFFICULT OR IMPRACTICABLE TO
DETERMINE.  THEREFORE, BY SEPARATELY
INITIALING THIS SECTION, THE PARTIES ACKNOWLEDGE THAT THE NONREFUNDABLE DEPOSIT
HAS BEEN AGREED UPON, AFTER NEGOTIATION, AS THE PARTIES’ REASON-ABLE ESTIMATE
OF SELLER’S DAMAGES AND AS SELLER’S SOLE AND EXCLUSIVE REMEDY UNDER THIS
AGREEMENT, AT LAW OR IN EQUITY AGAINST PURCHASER IN THE EVENT THE CLOSING (AS
DEFINED IN SECTION 4.1) DOES NOT OCCUR.

 

(c)           PURCHASER
AND SELLER ACKNOWLEDGE THAT THEY HAVE READ AND UNDERSTOOD THE ABOVE PROVISION
COVERING LIQUIDATED DAMAGES, AND THAT EACH PARTY WAS REPRESENTED BY COUNSEL WHO
EXPLAINED THE CONSEQUENCES OF THIS LIQUIDATED DAMAGES PROVISION AT THE TIME
THIS AGREEMENT WAS EXECUTED.

 

1.7           Title
Company.

 

(a)           Upon
mutual execution of this Agreement, the parties hereto shall deposit an
executed counterpart of this Agreement with Title Company and this Agreement
shall serve as instructions to Title Company for consummation of the purchase
contemplated hereby (“Escrow”).  Seller
and Purchaser shall execute such supplemental escrow instructions as may be
appropriate to enable Title Company to comply with the terms of this Agreement,
provided such supplemental escrow instructions are not in conflict with this
Agreement as it may be amended in writing from time to time.  In the event of any conflict between the
provisions of this Agreement and any supplementary escrow instructions signed
by Purchaser and Seller, the terms of this Agreement shall control.  Title Company shall hold and dispose of the
Deposit and other funds and instruments delivered into Escrow in accordance
with the terms of this Agreement.  Seller
and Purchaser agree that the duties of the Title Company hereunder are purely
ministerial in nature and shall be expressly limited to the matters set forth
in this Agreement.

 

(b)           Title
Company shall not be responsible for any interest on the Deposit except as is actually
earned, or for the loss of any interest resulting from the withdrawal of the
Deposit prior to the date interest is posted thereon.

 

(c)           Title
Company shall execute this Agreement for the purpose of being bound by the
provisions of this Agreement directing action by the Title Company.

 

3

 

ARTICLE 2

TITLE AND SURVEY

 

2.1           Title
Inspection Period.  Purchaser shall
have the right until the day that is forty-five (45) days after the Effective
Date (hereinafter referred to as the “Title Inspection Period”), to review a
current preliminary title report on the Real Property, accompanied by copies of
all documents referred to in the report (collectively, the “Title Report).  The Purchaser shall be responsible for the
costs of any new survey or survey update required in connection with the
issuance of the Title Policy.

 

2.2           Title
Examination.  Purchaser shall notify
Seller in writing (the “Title Notice”) prior to the expiration of the Title
Inspection Period which exceptions to title (including survey matters), if any,
will not be accepted by Purchaser.  If
Purchaser fails to notify Seller in writing of its disapproval of any
exceptions to title by the expiration of the Title Inspection Period, Purchaser
shall be deemed to have approved the condition of title to the Real
Property.  If Purchaser notifies Seller
in writing that Purchaser objects to any exceptions to title, Seller shall have
five (5) days after receipt of the Title Notice to notify Purchaser (x) that Seller
will remove such objectionable exceptions from title on or before the Closing
(as defined in Section 4.1); or (y) that Seller elects not to cause such
exceptions to be removed.  If Seller
gives Purchaser notice under clause (y) above, Purchaser shall have five (5)
days in which to notify Seller that Purchaser will terminate this
Agreement.  If this Agreement is
terminated pursuant to the foregoing provisions of this paragraph, then neither
party shall have any further rights or obligations hereunder (except for any
indemnity obligations of either party pursuant to this Agreement), the Deposit
shall be returned to Purchaser and each party shall bear its own costs incurred
hereunder.

 

2.3           Pre-Closing
“Gap” Title Defects.  Purchaser may,
at or prior to Closing, notify Seller in writing (the “Gap Notice”) of any
objections to title (a) raised by the Title Company between the expiration of
the Title Inspection Period and the Closing and (b) not disclosed by the Title
Company or otherwise known to Purchaser prior to the expiration of the Title
Inspection Period; provided that Purchaser must notify Seller of such objection
to title within five (5) days of being made aware of the existence of such
exception.  If Purchaser sends a Gap
Notice to Seller, Purchaser and Seller shall have the same rights and
obligations with respect to such notice as apply to a Title Notice under
Section 2.2 hereof.

 

2.4           Permitted
Exceptions.  The Property shall be
conveyed subject to the following matters, which are hereinafter referred to as
the “Permitted Exceptions”:  (a) those
matters that either are not objected to in writing within the time periods
provided in Sections 2.2 or 2.3 hereof, or if objected to in writing by
Purchaser, are those to which Purchaser has elected or is deemed to have
elected to accept the conveyance of the Property and (b) items shown on the
Survey and not objected to by Purchaser or waived by Purchaser in accordance
with Section 2.2 hereof.

 

2.5           Payment
of Monetary Liens.  Notwithstanding
anything to the contrary contained in this Agreement, the Permitted Exceptions
shall not include and Seller shall cause to be removed from record at or before
the Closing at Seller’s cost, any existing monetary liens or encumbrances
against the Property other than current, non-delinquent real property taxes and
assessments.

 

4

 

2.6           Conveyance
of Title.  At Closing, Seller shall
convey and transfer to Purchaser fee simple title to the Real Property, by
execution and delivery of the Deed (as defined in Section 4.2(a)
hereof).  Evidence of delivery of such
title shall be the issuance by the Title Company of an ALTA Coverage Owner’s
Policy of Title Insurance (the “Title Policy”) covering the Real Property, in
the full amount of the Purchase Price, subject only to the Permitted
Exceptions.

 

ARTICLE 3

REVIEW OF PROPERTY

 

3.1           Right
of Inspection.

 

(a)           Purchaser
shall have the right until the date that is forty-five (45) days after the
Effective Date (hereinafter referred to as the “Inspection Period”), to make a
physical inspection of the Real Property, including an inspection of the
environmental condition thereof pursuant to the terms and conditions of this
Agreement, and to examine the “Due Diligence Materials” (as hereinafter defined).  As used herein, the “Due Diligence Materials”
shall mean all documents, records and files in Seller’s possession or in the
possession of Seller’s manager concerning the physical condition (including
recent capital improvements and repairs), operation, entitlement status,
development, and use of the Property, and all Intangibles relating to the
Property in Seller’s possession.  The Due
Diligence Materials shall not include Seller’s partnership or corporate
records, internal memoranda, accounting and tax records and similar
proprietary, confidential or privileged information (collectively, the “Confidential
Documents”).  Seller will deliver to
Purchaser all Due Diligence Materials in Seller’s possession or in the
possession of Seller’s manager on the Effective Date.

 

3.2           Environmental
Reports.  SELLER SHALL DELIVER TO
PURCHASER ANY ENVIRONMENTAL REPORTS IN ITS POSSESSION AND PURCHASER WILL
ACKNOWLEDGE IN WRITING ITS RECEIPT OF SUCH REPORTS.

 

3.3           Right
of Termination.  If for any reason
whatsoever in Purchaser’s sole and absolute discretion Purchaser determines
that the Property or any aspect thereof is unsuitable for Purchaser’s
acquisition, including without limitation the fact that Purchaser is unable to
obtain financing on terms acceptable to it, Purchaser shall have the right to
terminate this Agreement by giving written notice thereof to Seller prior to
the expiration of the Inspection Period, and if Purchaser gives such notice of
termination within the Inspection Period, this Agreement shall terminate.  If this Agreement is terminated pursuant to
the foregoing provisions of this paragraph, then neither party shall have any
further rights or obligations hereunder (except for any indemnity obligations
of either party pursuant to this Agreement) and each party shall bear its own
costs incurred hereunder.  If Purchaser
gives Seller a notice waiving Purchaser’s right to terminate pursuant to this
Section 3.3 (“Purchaser’s Notice to Proceed”) prior to the expiration of the
Inspection Period, or without action by Purchaser upon the expiration of the
Inspection Period, then Purchaser shall be deemed to have elected to continue
this Agreement.

 

3.4           Tenant.  The Property is currently subject to the
Lease dated April 26, 1995, between Seller and Purchaser.  The expiration date of the Lease is September
30, 2005.  The

 

5

 

Property shall be delivered to Purchaser free and clear of any claims
of occupancy except for Purchaser’s occupancy under the Lease.

 

ARTICLE 4

CLOSING

 

4.1           Time
and Place.

 

(a)           The
consummation of the transaction contemplated hereby (the “Closing”) shall be
October 1, 2005 (“Outside Closing Date”).

 

(b)           If,
for any reason not caused by the default of a party hereunder the Closing does
not occur on or before the Outside Closing Date, as such date may be extended
by, and only by, (i) mutual agreement of Purchaser or Seller or (ii) in
accordance with Article 7 of this Agreement, the obligations of the parties to
buy and sell the Property shall terminate and each party shall have the rights
and remedies set forth herein.

 

(c)           Non-recorded
documents shall be deposited with Shartsis, Friese & Ginsburg LLP (“SF&G”),
in escrow, and recorded documents shall be delivered to the Title Company as
provided in this Agreement.  At the
Closing, Seller and Purchaser shall perform the obligations set forth in, this
Article, the performance of which obligations shall be concurrent conditions;
provided that the Deed shall not be recorded until Seller receives confirmation
of the wire number of the wired portion of the Purchase Price, adjusted by
prorations as set forth herein.

 

4.2           Seller’s
Deliveries.

 

(a)           At
least one business day prior to the Closing, Seller shall deliver to Title
Company the original Deed in the form attached hereto as Exhibit B (“Deed”).

 

(b)           At
least one business day prior to the Closing, Seller shall deliver to SF&G,
in escrow, two duly executed counterpart originals of an assignment of Seller’s
interest the Intangibles in the form attached hereto as Exhibit C (the “Assignment
of Intangibles”).

 

(c)           On
or before the Closing, Seller shall deliver to SF&G, in escrow, a Bill of
Sale for the Personal Property in the form attached hereto as Exhibit D.

 

(d)           In
the event that any representation or warranty of Seller needs to be modified
due to changes since the Effective Date, at least one business day prior to the
Closing, Seller shall deliver to SF&G, in escrow, a certificate, dated as
of the date of Closing and executed on behalf of Seller by a duly authorized officer
thereof, identifying any representation or warranty which is not, or no longer
is, true and correct and explaining the state of facts giving rise to the
change.  In no event shall Seller be
liable to Purchaser for, or be deemed to be in default hereunder by reason of,
any breach of representation or warranty which results from any change that (i)
occurs between the Effective Date and the date of Closing and (ii) is expressly
permitted under the terms of this Agreement or is beyond the reasonable control
of Seller to prevent; provided, however, that the occurrence of a change which
is not permitted hereunder or is beyond the reasonable control of Seller to
prevent shall, if materially adverse to Purchaser,

 

6

 

constitute the non-fulfillment of the condition set forth in Section
4.6(b) hereof and if the Closing does not occur, the Deposit shall be returned
to Purchaser.  Notwithstanding the
foregoing; if, despite changes or other matters described in such certificate,
the Closing occurs, Seller’s representations and warranties set forth in this
Agreement shall be deemed to have been modified by all statements made in such
certificate.

 

(e)           At
least one business day prior to the Closing, Seller shall deliver to Title
Company such evidence as the Title Company may reasonably require as to the
authority of the person or persons executing documents on behalf of Seller.

 

(f)            At
least one business day prior to the Closing, Seller shall deliver to Title
Company (i) a certificate stating that Seller is not a “foreign person” as
defined in the Federal Foreign Investment in Real Property Tax Act of 1980 and
(ii) a State of California Form 590 (collectively, the “Non-Foreign Affidavits”).

 

(g)           Upon
the Closing, Seller shall deliver to Purchaser outside of Escrow the Leases and
the Intangibles.

 

(h)           At
least one business day prior to the Closing, Seller shall deliver to Title
Company a full release and reconveyance of all monetary encumbrances affecting
the Property which are not to be paid out of the proceeds of the Closing (other
than the lien of current, non-delinquent real property taxes and assessments)
and the release of any mechanics’ liens, and such affidavits as may be
customarily and reasonably required by the Title Company.

 

(i)            Upon
the Closing, Seller shall deliver to Purchaser possession and occupancy of the
Property.

 

(j)            On
or before the Closing, Seller shall deliver to SF&G, in escrow and/or Title
Company as applicable, a closing statement reasonably acceptable to Seller and
Purchaser duly executed by Seller. 
Purchaser and Seller shall cooperate in good faith with Title Company to
prepare the final closing statement.

 

(k)           On
or before the Closing, Seller shall deliver to SF&G, in escrow, and/or
Title Company, as applicable, such additional documents as shall be reasonably
required to consummate the transaction contemplated by this Agreement.

 

4.3           Purchaser’s
Deliveries.

 

(a)           At
least one business day prior to the Closing, Purchaser shall wire transfer to
Title Company the full amount of the Purchase Price, increased or decreased by
prorations and adjustments as herein provided.

 

(b)           At
least one business day prior to the Closing, Purchaser shall deliver to
SF&G, in escrow, two duly executed counterpart originals of the Assignment
of Intangibles.

 

(c)           In
the event that any representation or warranty of Purchaser needs to be modified
due to changes since the Effective Date, at least one business day prior to the
Closing, Seller shall deliver to SF&G, in escrow, a certificate, dated as
of the date of Closing and

 

7

 

executed on behalf of Purchaser by a duly authorized representative
thereof, identifying any such representation or warranty which is not, or no
longer is, true and correct and explaining the state of facts giving rise to
the change.  In no event shall Purchaser
be liable to Seller for, or be deemed to be in default hereunder by reason of,
any breach of representation or warranty set forth herein which results from
any change that (i) occurs between the Effective Date and the date of Closing
and (ii) is expressly permitted under the terms of this Agreement or is beyond
the reasonable control of Purchaser to prevent; provided, however, that the
occurrence of a change which is not permitted hereunder or is beyond the
reasonable control of Purchaser to prevent shall, if materially adverse to
Seller, constitute the non-fulfillment of the condition set forth in Section
4.7(c) hereof.  Notwithstanding the
foregoing, if, despite changes or other matters described in such certificate,
the Closing occurs, Purchaser’s representations and warranties set forth in
this Agreement shall be deemed to have been modified by all statements made in
such certificate.

 

(d)           At
least one business day prior to the Closing, Purchaser shall deliver to Title
Company such evidence as the Title Company may reasonably require as to the
authority of the person or persons executing documents on behalf of Purchaser.

 

(e)           On
or before the Closing, Purchaser shall deliver to SF&G, in escrow, and/or
Title Company, as applicable, a closing statement reasonably acceptable to
Seller and Purchaser duly executed by Purchaser.

 

(f)            On
or before the Closing, Purchaser shall deliver to SF&G, in escrow and/or
Title Company, as applicable, deliver such additional documents as shall be
reasonably required to consummate the transaction contemplated by this
Agreement.

 

4.4           Credits,
Prorations and Closing Deliveries.

 

(a)           All
income and expenses of the Property shall be apportioned as of 12:01 a.m.,
on October 1, 2005, as if Purchaser were vested with title to the Property
during the entire day upon which Closing occurs.  Such prorated items shall include without
limitation the following:  (i) taxes and
assessments levied against the Property; (ii) utility charges for which Seller
is liable, if any, such charges to be apportioned at Closing on the basis of
the most recent meter reading occurring prior to Closing (dated not more than
fifteen (15) days prior to Closing) or, if unmetered, on the basis of a current
bill for each such utility; provided, however, that Seller may pay such utility
charges directly to the utility provider; (iii) all amounts payable under
assigned Intangibles; and (iv) any other operating expenses or other items
pertaining to the Property which are customarily prorated between a purchaser
and a seller in the county in which the Property is located.  It is understood and agreed that none of the
foregoing prorations is intended to limit Purchaser’s obligations as tenant
under the Lease for payment of any such items.

 

(b)           Purchaser
shall receive a credit at Closing in the amount of the Security Deposit.

 

(c)           Except
as otherwise provided herein, any revenue or expense amount which cannot be
ascertained with certainty as of Closing shall be prorated on the basis of the

 

8

 

parties’ reasonable estimates of such amount, and shall be the subject
of a final proration ninety (90) days after Closing, or as soon thereafter as
the precise amounts can be ascertained. 
Purchaser shall promptly notify Seller when it becomes aware that any
such estimated amount has been ascertained. 
The obligations of the parties with respect to such post-Closing
reconciliations shall survive the Closing.

 

(d)           Upon
the Closing, Title Company shall record the Deed in the Official Records of the
City of Columbus, Ohio, with a conformed recorded copy to be delivered to
Purchaser and Seller, fund the balance of the Deposit and Purchase Price to
Seller, less any of Seller’s share of closing costs, as directed by Seller, and
Title Company and SFG shall deliver the originals of the Non-Foreign Status
Affidavits to Purchaser, and deliver the Bill of Sale, Assignment of
Intangibles and Assignment of Leases and other instruments and documents
delivered through the Escrow to the applicable party.

 

4.5           Transaction
Taxes and Closing Costs.

 

(a)           Seller
and Purchaser shall execute such returns, questionnaires and other documents as
shall be required with regard to all applicable real property transaction taxes
imposed by applicable federal, state or local law or ordinance.

 

(b)           Seller
shall pay the fees of any counsel representing Seller in connection with this
transaction.  Seller shall also pay the
following costs and expenses:  (i)
one-half of the escrow fee, if any, which may be charged by the Title Company;
(ii) the title insurance premium; and (iii) all transfer taxes, recording fees
and conveyance charges customarily paid by sellers in Columbus Ohio.

 

(c)           Purchaser
shall pay the fees of any counsel representing Purchaser in connection with
this transaction.  Purchaser shall also
pay the following costs and expenses: 
(i) one-half of the escrow fee, if any, which may be charged by the
Title Company and (ii) all transfer taxes, recording fees and conveyance
charges customarily paid by purchasers in Columbus, Ohio.

 

(d)           All
costs and expenses incident to this transaction and the closing thereof, and
not specifically described above, shall be paid by the party incurring same.

 

4.6           Conditions
Precedent to Obligation of Purchaser. 
The obligation of Purchaser to consummate the transaction hereunder
shall be subject to the fulfillment on or before the date of Closing of all of
the following conditions, any or all of which may be waived by Purchaser in its
sole discretion:

 

(a)           Seller
shall have delivered to SF&G, in escrow, or to Title Company all of the
items required to be delivered to Purchaser pursuant to the terms of this
Agreement, including but not limited to, those provided for in Section 4.2
hereof;

 

(b)           All
of the representations and warranties of Seller contained in this Agreement
shall be true and correct in all material respects as of the date of Closing
(with appropriate modifications permitted under this Agreement);

 

9

 

(c)           Seller
shall have performed and observed, in all material respects, all covenants and
agreements of this Agreement to be performed and observed by Seller as of the
date of Closing; and

 

(d)           Title
Company (or another nationally recognized title company) shall be
unconditionally committed to issue to Purchaser upon the Closing the Title
Policy (subject to only the Permitted Exceptions and with such endorsements as
have been approved by Purchaser) in the form of the pro-forma policy or title
commitment as have been agreed to by such Title Company and approved by
Purchaser during the Title Inspection Period, a copy of which shall have been
delivered to Seller.

 

4.7           Conditions
Precedent to Obligation of Seller. 
The obligation of Seller to consummate the transaction hereunder shall
be subject to the fulfillment on or before the date of Closing of all of the
following conditions, any or all of which may be waived by Seller in its sole
discretion:

 

(a)           Seller
shall have received confirmation of the wiring of the Purchase Price, as
adjusted as provided herein;

 

(b)           Purchaser
shall have delivered to SF&G, in escrow, or to Title Company all of the
items required to be delivered to Seller pursuant to the terms of this
Agreement, including, but not limited to, those provided for in Section 4.3
hereof;

 

(c)           All
of the representations and warranties of Purchaser contained in this Agreement
shall be true and correct in all material respects as of the date of Closing
(with appropriate modifications permitted under this Agreement); and

 

(d)           Purchaser
shall have performed and observed, in all material respects, all covenants and
agreements of this Agreement to be performed and observed by Purchaser as of
the date of Closing.

 

ARTICLE 5

REPRESENTATIONS, WARRANTIES AND COVENANTS

 

5.1           Representations
and Warranties of Seller.  Seller
hereby makes the following representations and warranties to Purchaser as of
the Effective Date, which representations and warranties shall be deemed to
have been made again as of the Closing, subject to Section 4.2(d) hereof:

 

(a)           Organization
and Authority.  Seller has been duly
organized and is validly existing under the laws of the State of
California.  Seller has the full right
and authority to enter into this Agreement and to transfer all of the Property
and to consummate or cause to be consummated the transaction contemplated by
this Agreement.

 

(b)           Execution
of Documents.  The person signing
this Agreement on behalf of Seller is authorized to do so.

 

10

 

(c)           Pending
Actions.  There is no action, suit,
arbitration, unsatisfied order or judgment, government investigation or
proceeding pending against Seller which, if adversely determined, could
individually or in the aggregate materially interfere with the consummation of
the transaction contemplated by this Agreement.

 

(d)           Due
Diligence Materials. To Seller’s knowledge, the Due Diligence Materials are
all of the agreements concerning the operation and maintenance of the Property
entered into by Seller and affecting the Property.

 

(e)           Condemnation.  To Seller’s knowledge, Seller has received no
written notice of any condemnation proceedings relating to the Property.

 

(f)            Violations.  To Seller’s knowledge, Seller has not
received written notice of any uncured violation of any federal, state or local
law relating to the use or operation of the Property.

 

5.2           Survival
of Seller’s Representations and Warranties. 
The representations and warranties of Seller set forth in Section 5.1
hereof as updated as of the Closing in accordance with the terms of this
Agreement, shall survive Closing for a period of one year.  Seller shall have no liability to Purchaser
for a breach of any representation or warranty unless written notice containing
a description of the specific nature of such breach shall have been given to
Seller prior to the expiration of said one year period and an action shall have
been commenced by Purchaser against Seller within sixty (60) days following the
expiration of such one year period.

 

5.3           Covenants
of Seller.  Seller shall not, after
the date of Seller’s execution of this Agreement, enter into any contract,
lease or other agreement affecting the Property that by its terms will not be
terminable at the Closing except with the written approval of Purchaser.

 

5.4           Representations
and Warranties of Purchaser. 
Purchaser hereby makes the following representations and warranties to
Seller as of the Effective Date, which representations and warranties shall be
deemed to have been made again as of the Closing, subject to
Section 4.3(c) hereof:

 

(a)           Organization
and Authority.  Purchaser has been
duly organized and is validly existing under the laws of California.  Purchaser has the full right and authority to
enter into this Agreement and to consummate or cause to be consummated the
transaction contemplated by this Agreement (subject to Purchaser’s performance
and approval of its due diligence inspections within the Inspection Period).

 

(b)           Execution
of Documents.  The person signing
this Agreement on behalf of Purchaser is authorized to do so.

 

(c)           Pending
Actions.  There is no action, suit,
arbitration, unsatisfied order or judgment, government investigation or
proceeding pending against Purchaser which, if adversely determined, could
individually or in the aggregate materially interfere with the consummation of
the transaction contemplated by this Agreement.

 

11

 

5.5           Survival
of Purchaser’s Representations and Warranties.  The representations and warranties of
Purchaser set forth in Section 5.4 hereof as updated as of the Closing in
accordance with the terms of this Agreement, shall survive Closing for a period
of one year.  Purchaser shall have no
liability to Seller for a breach of any representation or warranty unless
written notice containing a description of the specific nature of such breach
shall have been given by Seller to Purchaser prior to the expiration of said
one year period and an action shall have been commenced by Seller against
Purchaser within sixty (60) days following the expiration of such one year
period.

 

ARTICLE 6

DEFAULT

 

6.1           Events
of Default.

 

(a)           The
following shall constitute a Default of Purchaser hereunder:  (i) Purchaser defaults under any
provision of this Agreement providing for the payment of money and such failure
to pay continues for a period of five (5) days after receipt of notice of
nonpayment but in no event beyond the Outside Closing Date; (ii) Purchaser
defaults under any other provision of this Agreement and such default is not
cured for a period of fifteen (15) days after receipt of notice of such default
but in no event beyond the Outside Closing Date; (iii) if at any time prior to
Closing (a) there shall be filed by Purchaser in any court or with any
governmental body pursuant to any statute either of the United States or of any
state, a petition in bankruptcy or insolvency or a petition seeking to effect
any plan or other arrangement with creditors or seeking the appointment of a
receiver; or (b) a receiver, conservator or liquidating agent or similar person
shall be appointed for all or a substantial portion of Purchaser’s property; or
(c) Purchaser shall give notice to any person or governmental body of
insolvency or suspension or pending suspension of its operations; or (d) a
material, adverse change occurs in the financial condition of Purchaser or
Purchaser  shall make an assignment for
the benefit of creditors or take any other similar action for the protection or
benefit of creditors.

 

(b)           The
following shall constitute a Default of Seller hereunder:  (i) Seller defaults under any provision of
this Agreement providing for the payment of money and such failure to pay
continues for a period of five (5) days after receipt of notice of nonpayment
but in no event beyond the Outside Closing Date; (ii) Seller defaults under any
other provision of this Agreement and such default is not cured for a period of
fifteen (15) days after receipt of notice of such default, but in no event
beyond the Outside Closing Date; (iii) if at any time prior to Closing (a)
there shall be filed by Seller in any court or with any governmental body
pursuant to any statute either of the United States or of any state, a petition
in bankruptcy or insolvency or a petition seeking to effect any plan or other
arrangement with creditors or seeking the appointment of a receiver; or (b) a
receiver, conservator or liquidating agent or similar person shall be appointed
for all or a substantial portion of Seller’s property; or (c) Seller shall give
notice to any person or governmental body of insolvency or suspension or
pending suspension of its operations; or (d) a material, adverse change occurs
in the financial condition of Seller or Seller shall make an assignment for the
benefit of creditors or take any other similar action for the protection or
benefit of creditors.

 

12

 

6.2           Default
by Purchaser.  In the event the sale
of the Property as contemplated hereunder is not consummated on or before the
Outside Closing Date due to Purchaser’s Default hereunder (or, except as
expressly set forth in Section 1.6, if such sale does not occur for any other
reason except for a Default by Seller), Seller shall be entitled, as its sole
and exclusive remedy under this Agreement, at law or in equity, to terminate
this Agreement and receive the Deposit as liquidated damages for the breach of
this Agreement in accordance with the provisions of Section 1.6 above, it being
agreed between the parties hereto that the actual damages to Seller in the
event of such breach are impractical to ascertain and the amount of the Deposit
is a reasonable estimate thereof.

 

6.3           Default
by Seller.  In the event that
Purchaser has performed or has indicated its ability to perform each and every
of the conditions precedents herein on or before the Outside Closing Date and
the sale of the Property as contemplated hereunder is not consummated on or
before such date due to Seller’s Default hereunder, Purchaser shall be entitled
either (a) to receive the return of the Deposit (plus all interest thereon),
which return shall operate to terminate this Agreement and release Seller from
any and all liability hereunder, or (b) to enforce specific performance of
Seller’s obligation to convey the Property to Purchaser in accordance with the
terms of this Agreement, or (c) to exercise its rights under applicable law for
damages.

 

ARTICLE 7

RISK OF LOSS

 

7.1           Damage.  In the event of loss or damage to the
Property or any portion thereof which is not “Major” (as hereinafter defined),
this Agreement shall remain in full force and effect provided that Seller shall
assign to Purchaser all of Seller’s right, title and interest in and to any claims
and proceeds Seller may have with respect to any casualty insurance policies or
condemnation awards relating to the premises in question and the Purchase Price
shall be reduced by an amount equal to the lesser of the deductible damage
amount under Seller’s insurance policy or the cost of such repairs as
determined in accordance with Section 7.3 hereof (provided that in the event of
uninsured damage, such reduction in the Purchase Price shall equal the
estimated cost of such repairs necessary to the portion of the Property which
is to be incorporated into the development). 
Upon Closing, full risk of loss with respect to the Property shall pass
to Purchaser.

 

7.2           Major
Damage.  In the event of a “Major”
loss or damage, either Seller or Purchaser may terminate this Agreement by
written notice to the other party, in which event the Deposit shall be returned
to Purchaser.  If neither Seller nor
Purchaser elects to terminate this Agreement within fifteen (15) days after
Seller sends Purchaser written notice of the occurrence of such Major loss or
damage (which notice shall state the cost of repair or restoration thereof as
opined by an architect in accordance with Section 7.3 hereof), then Seller and
Purchaser shall be deemed to have elected to proceed with Closing, in which
event Seller shall, at Seller’s option, either (a) perform any necessary
repairs, or (b) assign to Purchaser all of Seller’s right, title and interest
in and to any claims and proceeds Seller may have with respect to any casualty
insurance policies or condemnation awards relating to the premises in
question.  In the event that Seller
elects to perform repairs upon the Property, Seller shall use reasonable
efforts to complete such repairs promptly and the date of Closing shall be
extended a reasonable time in order to allow for the completion of such
repairs.  If Seller elects to assign a
casualty claim to Purchaser, the

 

13

 

Purchase Price shall be reduced by an amount equal to the lesser of the
deductible amount under Seller’s insurance policy or the cost of such repairs
as determined in accordance with Section 7.3 hereof (provided that in the event
of uninsured damage, such reduction in the Purchase Price shall equal the
estimated cost of such repairs).  Upon
Closing, full risk of loss with respect to the Property shall pass to
Purchaser.

 

7.3           Definition
of “Major” Loss or Damage.  For
purposes of Sections 7.1 and 7.2, “Major” loss or damage refers to the
following:  any loss due to a casualty or
condemnation that has an estimated value of more than $250,000.00.  The determination of “Major” loss or damage
shall be made by an architect mutually reasonably approved by Purchaser and
Seller.

 

ARTICLE 8

BROKERAGE COMMISSIONS

 

With respect to the transaction contemplated by this
Agreement, each party hereto agrees that if any person or entity makes a claim
for brokerage commissions or finder’s fees related to the sale of the Property
by Seller to Purchaser, and such claim is made by, through or on account of any
acts or alleged acts of said party or its representatives, said party will
protect, indemnify, defend and hold the other party free and harmless from and
against any and all loss, liability, cost, damage and expense (including
reasonable attorneys’ fees) in connection therewith.  The provisions of this paragraph shall
survive Closing or any termination of this Agreement.

 

ARTICLE 9

DISCLAIMERS AND WAIVERS

 

9.1           No
Reliance on Documents.  Except as
expressly stated in this Agreement, Seller makes no representation or warranty
as to the truth, accuracy or completeness of any materials, data or information
delivered by Seller or its brokers or agents to Purchaser in connection with
the transaction contemplated hereby.

 

9.2           AS-IS
SALE; DISCLAIMERS.  EXCEPT AS
EXPRESSLY SET FORTH IN THIS AGREEMENT AND/OR IN ANY OF THE DOCUMENTS TO BE
EXECUTED AND DELIVERED BY SELLER AT CLOSING, IT IS UNDERSTOOD AND AGREED THAT
SELLER IS NOT MAKING AND HAS NOT AT ANY TIME MADE ANY WARRANTIES OR
REPRESENTATIONS OF ANY KIND OR CHARACTER, EXPRESS OR IMPLIED, WITH RESPECT TO
THE PROPERTY, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OR REPRESENTATIONS
AS TO HABITABILITY, MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.

 

PURCHASER ACKNOWLEDGES AND AGREES THAT UPON CLOSING
SELLER SHALL SELL AND CONVEY TO PURCHASER AND PURCHASER SHALL ACCEPT THE
PROPERTY “AS IS, WHERE IS, WITH ALL FAULTS”, EXCEPT TO THE EXTENT EXPRESSLY
PROVIDED OTHERWISE IN THIS AGREEMENT AND/OR IN ANY OF THE DOCUMENTS TO BE
EXECUTED AND DELIVERED BY SELLER AT CLOSING.

 

14

 

ARTICLE 10

MISCELLANEOUS

 

10.1         Confidentiality.  Each party and its respective representatives
shall hold in strictest confidence all confidential, non-public data and
information obtained with respect to the other party or its business, whether
obtained before or after the execution and delivery of this Agreement, and
shall not disclose the same to others; provided, however, that it is understood
and agreed that each party may disclose such data and information (a) to its
respective employees, lenders, consultants, accountants and attorneys provided
that such persons agree in writing to treat such data and information
confidentially, (b) in connection with that party’s enforcement of its rights
hereunder; (c) pursuant to any legal requirement, any statutory reporting
requirement or any accounting or auditing disclosure requirement required by
applicable law; (d) in connection with performance by either party of its
obligations under this Agreement (including, but not limited to, the delivery
and recordation of instruments, notices or other documents required hereunder);
or (e) to potential investors, participants or assignees in or of the
transaction contemplated by this Agreement or such party’s rights therein,
provided that such persons are advised of such obligation and agree in writing
to treat such data and information confidentially. In the event of a breach or
threatened breach by a party or its agents or representatives of this Section,
the other party shall be entitled to an injunction restraining the
non-performing party or its agents or representatives from disclosing, in whole
or in part, such confidential information. 
Nothing herein shall be construed as prohibiting the non-breaching party
from pursuing any other available remedy at law or in equity for such breach or
threatened breach.  The provisions of
this Section shall survive any termination of this Agreement prior to the
Closing.

 

10.2         Public
Disclosure.  Prior to the Closing,
any release to the public of confidential information with respect to the sale
contemplated herein or any material terms set forth in this Agreement will be
made only in the form approved by Purchaser and Seller.

 

10.3         Assignment.  Subject to the provisions of this Section,
the terms and provisions of this Agreement are to apply to and bind the
permitted successors and assigns of the parties hereto.  Purchaser may not assign its rights under
this Agreement except to an entity affiliated with Purchaser without first
obtaining Seller’s written approval, which approval shall not be unreasonably
withheld.

 

10.4         Notices.  Any notice pursuant to this Agreement shall
be given in writing by reputable overnight delivery service with proof of
delivery, and shall be deemed to have been given upon receipt or refusal to
accept delivery sent to the intended addressee at the address set forth below,
or to such other address or to the attention of such other person as the
addressee shall have designated by written notice sent in accordance herewith.
Unless changed in accordance with the preceding sentence, the addresses for
notices given pursuant to this Agreement shall be as follows:

 

If to Purchaser:

 

Simpson Manufacturing
Co., Inc.

4120 Dublin Blvd., Suite
400

Dublin, California 94568

Attention:  Michael Herbert

 

15

 

with a copy to:

 

Alan J. Robin, Esq.

Shartsis, Friese &
Ginsburg LLP

One Maritime Plaza, 18th
Floor

San Francisco, California
94111

 

If to Seller:

 

Everett Johnston

Partnership Management

P.O. Box 3605

Incline Village, NV 89450

 

10.5         1031
Exchange Cooperation.  On condition
that Purchaser receives written notice of its election to participate in a tax
free exchange under §1031 of the Code at least ten (10) business days prior to
the Closing Date, Purchaser agrees to reasonably cooperate with Seller’s
efforts to integrate the transactions contemplated hereunder into a
tax-deferred exchange under Section 1031 of the Code; provided, however, that
in no event shall (a) Purchaser incur any additional cost, obligation or
liability by reason of such exchange (including, without limitation, any
responsibility or liability of any kind for the failure of such exchange to be
consummated or to qualify for tax-deferred status under any federal or State
law or rule and any damage calculated or related in any fashion to Seller’s
lost tax benefits) or be required to hold title to any property, (b) the
Closing be delayed, or (c) Seller be relieved of any of its agreements, or
other obligations under this Agreement. Purchaser shall execute all amendments
to this Agreement, escrow instructions pertaining to the exchange transaction
and all other documents as may be necessary to carry out such an exchange,
subject to the qualifications set forth above; provided however that Purchaser
shall have the right to approve any and all such documents (which approval
shall not be unreasonably withheld).

 

10.6         Modifications.  This Agreement cannot be changed orally, and
no agreement shall be effective to waive, change, modify or discharge it in
whole or in part unless such agreement is in writing and is signed by the
parties against whom enforcement of any such change is sought.

 

10.7         Entire
Agreement.  This Agreement, including
the exhibits and schedules hereto, contains the entire agreement between the
parties hereto pertaining to the subject matter hereof and fully supersedes all
prior written or oral agreements and understandings between the parties
pertaining to such subject matter.

 

10.8         Further
Assurances.  Each party agrees that
it will execute and deliver such other documents and take such other action,
whether prior or subsequent to Closing, as may be reasonably requested by the
other party to consummate the transaction contemplated by this Agreement.  The provisions of this Section shall survive
Closing.

 

16

 

10.9         Counterparts.  This Agreement may be executed in
counterparts, all such executed counterparts shall constitute the same
agreement, and the signature of any party to any counterpart shall be deemed a
signature to, and may be appended to, any other counterpart.

 

10.10       Facsimile
Signatures.  In order to expedite the
transaction contemplated herein, telecopied signatures may be used in place of
original signatures on this Agreement. 
Seller and Purchaser intend to be bound by the signatures on the
telecopied document, are aware that the other party will rely on the telecopied
signatures, and hereby waive any defenses to the enforcement of the terms of
this Agreement based on the form of signature.

 

10.11       Severability.  If any provision of this Agreement is
determined by a court of competent jurisdiction to be invalid or unenforceable,
the remainder of this Agreement shall nonetheless remain in full force and
effect; provided that the invalidity or unenforceability of such provision does
not materially adversely affect the benefits accruing to any party hereunder.

 

10.12       Applicable
Law.  This Agreement shall be
governed by and construed in accordance with the laws of the State of
Ohio.  Purchaser and Seller agree that
the provisions of this Section shall survive the Closing or any termination of
this Agreement.

 

10.13       Attorneys’
Fees; Waiver of Jury Trial.

 

(a)           In
the event of any action or proceeding between Seller and Purchaser to enforce
any provision of this Agreement, the losing party shall pay to the prevailing
party all costs and expenses, including, without limitation, reasonable
attorneys’ fees and expenses, incurred in such action and in any appeal in
connection therewith by such prevailing party. 
The “prevailing party” will be determined by the court before whom the
action was brought based upon an assessment of which party’s major arguments or
positions taken in the suit or proceeding could fairly be said to have
prevailed over the other party’s major arguments or positions on major disputed
issues in the court’s decision.

 

(b)           IF
ANY ACTION OR PROCEEDING BETWEEN SELLER AND PURCHASER TO ENFORCE THE PROVISIONS
OF THIS AGREEMENT PROCEEDS TO TRIAL, SELLER AND PURCHASER HEREBY WAIVE THEIR
RESPECTIVE RIGHTS TO A JURY IN SUCH TRIAL.

 

10.14       No
Third-Party Beneficiary.  The
provisions of this Agreement and of the documents to be executed and delivered
at Closing are and will be for the benefit of Seller and Purchaser only and are
not for the benefit of any third party, and accordingly, no third party shall
have the right to enforce the provisions of this Agreement or of the documents
to be executed and delivered at Closing.

 

10.15       Captions.  The section headings appearing in this
Agreement are for convenience of reference only and are not intended to limit
or define the text of any section or any subsection hereof.

 

10.16       Recordation.  This Agreement may not be recorded by any
party hereto without the prior written consent of the other party hereto.
Concurrently with the execution of this

 

17

 

Agreement, the parties shall execute and record the Memorandum of
Purchase and Sale Agreement in the form attached hereto as Exhibit E.

 

10.17       Time
for Performance.  Time is of the
essence of this Agreement.  As used in
this Agreement, a “business day” shall mean a day that is not a Saturday,
Sunday or recognized federal or state holiday. 
If the last date for performance by either party under this Agreement
occurs on a day that is not a business day, than the last date for such
performance shall be extended to the next occurring business day.

 

IN WITNESS WHEREOF, the parties hereto have duly
executed this Agreement as of the Effective Date.

 

	
   

  	
  SELLER:

  	
   

  	
   

  
	
   

  	
  Everett Johnston

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Barclay Simpson

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Richard Phelan

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Estate of Tye Gilb

  
	
   

  	
  By:

  
	
   

  	
  Its:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Judy Oliphant

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Doyle Norman

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Amy Simpson

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Julie Simpson

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Elizabeth Simpson
  Murray

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Steve Eberhard

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Steve Lamson

  
											

 

18

 

	
   

  	
   

  	
   

  
	
   

  	
  Richard Perkins

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Thomas Fitzmyers

  
	
   

  	
   

  
	
   

  	
  Simpson Investment
  Company, a California

  general partnership

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Its:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  PURCHASER:

  	
  SIMPSON MANUFACTURING
  CO. INC.,

  
	
   

  	
  A Delaware corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
											

 

Title Company executes this Agreement below solely for
the purpose of acknowledging that it agrees to be bound by the provisions of
this Agreement relating to performance by the Title Company.

 

	
   

  	
  TITLE COMPANY:

  	
  LANDAMERICA TITLE
  INSURANCE

  COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
							

 

19

 

Exhibit A

 

DESCRIPTION OF
LAND

 

1

 

Exhibit B

 

FORM OF DEED

 

	
  RECORDING REQUESTED BY
  AND

  
	
  WHEN RECORDED MAIL TO:

  
	
   

  
	
   

  
	
   

  
	
   

  
	
   

  
	
  MAIL TAX STATEMENTS TO:

  
	
  Same as above

  
	
   

  	
  (Above
  Space For Recorder’s Use Only)

  

 

GRANT DEED

 

The undersigned Grantor declares that Documentary
Transfer Tax is not part of the public records.

 

FOR VALUE RECEIVED,                                 ,
                          ,
grants to                                               ,
a                                           
(“Grantee”), all that certain real property (the “Property”) situated in the
City of Columbus, County of                                         ,
State of Ohio, described on Exhibit A attached hereto and by this reference
incorporated herein.

 

THE PROPERTY IS CONVEYED TO GRANTEE SUBJECT TO:

 

(a) All exceptions appearing in the policy of
title insurance for the Property issued to the Grantee as of the date hereof;
(b) All matters which would be revealed or disclosed in an accurate survey; (c)
A lien not yet delinquent for taxes for real property, and any general or
special assessments against the Property; and (d) zoning ordinances and
regulations and any other laws, ordinances, or governmental regulations
restricting or regulating the use, occupancy or enjoyment of the Property.

 

IN WITNESS WHEREOF, the undersigned has executed this
Grant Deed dated as of                           ,
        .

 

GRANTOR:

 

 

SCHEDULE
1 TO GRANT DEED

 

LEGAL
DESCRIPTION OF REAL PROPERTY

 

1

 

Exhibit C

 

ASSIGNMENT
AND ASSUMPTION OF INTANGIBLES

 

THIS ASSIGNMENT AND ASSUMPTION OF INTANGIBLES (the “Assignment”)
is made as of the 30th day of September 2005, between                             
(“Assignor”) and                         ,
a(n)                     
(“Assignee”).

 

Assignor is the owner of
that certain real property located in the City of Columbus, State of Ohio, more
particularly described in Exhibit A attached hereto (the “Property”).  Assignor hereby assigns, transfers, sets over
and conveys to Assignee all of Assignor’s right, title and interest, to the
extent assignable, in, to and under any and all of the following, to wit:  all existing permits, licenses, approvals and
authorizations issued by any governmental authority in connection with the
Property (“Intangibles”), including, without limitation, those certain items
specified in Exhibit B attached hereto and incorporated herein by this
reference.

 

Assignee does hereby
assume and agree to perform all of Assignor’s obligations under the Intangibles
accruing with respect to the period from and after the date hereof.  Assignee agrees to indemnify, protect, defend
and hold Assignor harmless from and against any and all liabilities, losses,
costs, damages and expenses (including reasonable attorneys’ fees) directly or
indirectly arising out of or related to any breach or default in Assignee’s
obligations hereunder.

 

Assignor shall remain
liable for all of Assignor’s obligations under the Intangibles accruing with
respect to the period prior to the date hereof. 
Assignor agrees to indemnify, protect, defend and hold Assignee harmless
from and against any and all liabilities, losses, costs, damages and expenses
(including reasonable attorneys’ fees) directly or indirectly arising out of or
related to any breach or default in Assignor’s obligations hereunder.

 

In the event of any
action or proceeding between Assignor and Assignee to enforce any provision of
this Assignment, the losing party shall pay to the prevailing party all costs
and expenses, including, without limitation, reasonable attorneys’ fees and
expenses, incurred in such action and in any appeal in connection therewith by
such prevailing party.  The “prevailing
party” will be determined by the court before whom the action was brought based
upon an assessment of which party’s major arguments or positions taken in the
suit or proceeding could fairly be said to have prevailed over the other party’s
major arguments or positions on major disputed issues in the court’s decision.

 

This Assignment may be
executed in counterparts, all such executed counterparts shall constitute the
same agreement, and the signature of any party to any counterpart shall be
deemed a signature to, and may be appended to, any other counterpart.  In order to expedite the transaction
contemplated herein, telecopied signatures may be used in place of original
signatures on this Assignment.  Assignor
and Assignee intend to be bound by the signatures on the telecopied document,
are aware that the other party will rely on the telecopied signatures, and
hereby waive any defenses to the enforcement of the terms of this Assignment
based on the form of signature.

 

1

 

This Assignment shall be
binding upon and inure to the benefit of Assignor and Assignee and their
respective heirs, executors, administrators, successors and assigns.

 

This Assignment may be
executed in two or more counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same
instrument.

 

IN WITNESS WHEREOF,
Assignor and Assignee have each executed this Assignment as of the date first
written above.

 

	
   

  	
  ASSIGNOR:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ASSIGNEE:

  	
   

  	
   

  
	
   

  	
  a

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
									

 

[Attach
legal description—Exhibit A and description of Intangibles-Exhibit B]

 

2

 

EXHIBIT D

 

FORM OF
BILL OF SALE

 

FOR VALUABLE CONSIDERATION, the receipt and
sufficiency of which are hereby acknowledged,                             
(the “Seller”) does hereby sell and convey to                                       ,
a(n)                     
(the “Purchaser”) any and all of Seller’s right, title and interest in and to
all tangible personal property located upon the land described in Exhibit A
attached hereto and hereby made a part hereof (the “Land”) or within the
improvements located thereon, including, without limitation, any and all
appliances, furniture, carpeting, draperies and curtains, tools and supplies, and
other items of personal property owned by Seller (excluding cash and any
software), used exclusively in the operation of the Land and improvements, as
is, where is, and without warranty of title or use, and without warranty,
express or implied, of merchantability or fitness for a particular purpose.

 

TO HAVE AND TO HOLD all of said personal property unto
Purchaser, its successors and assigns, to its own use forever.

 

IN WITNESS WHEREOF, Seller has executed this Bill of
Sale as of the 30th day of September 2005.

 

	
   

  	
   

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  
						

 

[Attach legal
description]

 

1

 

EXHIBIT E

 

MEMORANDUM OF
PURCHASE AND SALE

 

RECORDING REQUESTED BY
AND

WHEN RECORDED RETURN TO:

 

Alan J. Robin, Esq.

Shartsis Friese Ginsburg
LLP

One Maritime Plaza, 18th
Floor

San Francisco, California
94118

 

MEMORANDUM
OF PURCHASE AND SALE AGREEMENT

 

THIS MEMORANDUM OF
PURCHASE AND SALE AGREEMENT is entered into as of the 6th day of
July, 2004 (the “Effective Date”), by and between COLUMBUS WESTBELT INVESTMENT
CO, a California partnership  (“Seller”),
and SIMPSON MANUFACTURING CO., INC., a Delaware corporation (“Purchaser”) with
reference to the following facts:

 

RECITALS

 

A.            Seller
owns the land and improvements known as 2600 International Street, Columbus,
Ohio.

 

B:            Purchaser
is currently the sole tenant of the land and improvements known as 2600
International Street, Columbus, Ohio, pursuant to a Lease dated April 26, 1995,
that, among other terms, requires tenant to pay all real and personal property
taxes, to pay all utilities and to pay for replacement cost insurance on the
improvements.

 

C.            Seller
has agreed to sell to Purchaser and Purchaser has agreed to buy from Seller the
land and property described in this Agreement in accordance with and upon
satisfaction of the terms and conditions set forth herein.

 

AGREEMENT

 

NOW, THEREFORE, Seller
hereby agrees to sell and Buyer hereby agrees to purchase the Property for the
purchase price and upon all of the terms, conditions and covenants contained in
that certain unrecorded Purchase and Sale Agreement (the “Agreement”) dated
July 6, 2004, executed by Seller and Buyer, which Agreement is incorporated
herein by this reference, including without limitation the following:

 

1.             In
the event of any breach or default by Seller in or of the Agreement or any of
the warranties, terms or provisions thereof, Buyer shall have, in addition to a
claim for damages for such breach or default, and in addition to and without
prejudice to any right or remedy available at law or in equity, the right to
demand and have specific performance of the Agreement and this Memorandum.

 

1

 

2.             This
Memorandum is not intended to change any of the terms of the Agreement and in
the event of any inconsistency between the terms of this Memorandum and the
terms of the Agreement, the terms of the Agreement shall prevail. The Agreement
is available at the offices of Seller and Buyer at the addresses indicated
above.

 

IN WITNESS WHEREOF, the
parties hereto have executed this Memorandum of Purchase and Sale Agreement
dated as of the date first set forth above.

 

	
   

  	
  SELLER:

  	
  COLUMBUS WESTBELT
  INVESTMENT CO.,

  a California partnership

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name: Everett Johnson

  
	
   

  	
  Title: Managing Partner

  
	
   

  	
   

  
	
   

  	
  MCKINNEY INVESTORS

  a California general partnership

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name: Everett Johnson

  
	
   

  	
  Title: Managing Partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  PURCHASER:

  	
  SIMPSON MANUFACTURING
  CO. INC.,

  a Delaware corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
							

 

2

 

EXHIBIT A

LEGAL DESCRIPTION

 

1

 

	
  State of California

  	
  )

  
	
   

  	
  ) ss.

  
	
  County of

  	
  )

  

 

On                             ,
2004, before me,                                         ,
personally appeared                                       ,
personally known to me (or proved to me on the basis of satisfactory evidence)
to be the person whose name is subscribed to the within instrument and
acknowledged to me that he/she executed the same in his/her authorized
capacity, and that by his/her signature on the instrument the person, or the
entity upon behalf of which the person acted, executed the instrument.

 

 

	
  State of California

  	
  )

  
	
   

  	
  ) ss.

  
	
  County of

  	
  )

  

 

On                             ,
2004, before me,                                         ,
personally appeared                                       ,
personally known to me (or proved to me on the basis of satisfactory evidence)
to be the person whose name is subscribed to the within instrument and
acknowledged to me that he/she executed the same in his/her authorized
capacity, and that by his/her signature on the instrument the person, or the
entity upon behalf of which the person acted, executed the instrument.

 

2

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