Document:

Document

Exhibit 10.1
REAL ESTATE SALE AGREEMENT
by and between
EQC OPERATING TRUST,
a Maryland real estate investment trust, Seller,
and
Bellevue 108 Avenue Owner LLC, Purchaser
for property located at
333 108th Avenue N.E.,
Bellevue, Washington
Dated:  February 12, 2020

									
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TABLE OF CONTENTS
PURCHASE AND SALE OF PROPERTY
2. PURCHASE PRICE.............................................................................................................. 2
2.1 Earnest Money........................................................................................................... 2
2.2 Cash Balance.............................................................................................................. 2
3. EVIDENCE OF TITLE......................................................................................................... 2
3.1 Permitted Exceptions................................................................................................. 2
3.2 Matters After the Effective Date................................................................................ 2
4. CLOSING.............................................................................................................................. 3
4.1 Seller’s Closing Deliveries........................................................................................ 3
4.2 Purchaser’s Closing Deliveries.................................................................................. 4
4.3 Closing Prorations and Adjustments.......................................................................... 4
4.3.1 Taxes.............................................................................................................. 5
4.3.2 Rent................................................................................................................ 5
4.3.3 Utilities........................................................................................................... 6
4.3.4 Service Contracts........................................................................................... 6
4.3.5 Fees Payable................................................................................................... 6
4.3.6 Tenant Inducement Costs, Leasing Commissions and Construction Contracts7 
4.4 Tenant Reimbursements............................................................................................. 8
4.4.1 For the Calendar Year of the Closing............................................................ 8
4.4.2 For Prior Calendar Years............................................................................... 9
4.4.3 Other Costs..................................................................................................... 10
4.4.4 Rent Paid in Arrears....................................................................................... 10
4.5 Reservation of Rights to Contest............................................................................... 10
4.6 Transaction Costs....................................................................................................... 10
4.7 Reprorations............................................................................................................... 11
5. CASUALTY LOSS AND CONDEMNATION.................................................................... 11
6. BROKERAGE....................................................................................................................... 11
7. DEFAULT AND REMEDIES............................................................................................... 12
7.1 Pre-Closing Purchaser’s Remedies............................................................................ 12
7.2 Pre-Closing Seller’s Remedies.................................................................................. 12
7.3 Post-Closing Remedies.............................................................................................. 13
8. CONDITIONS PRECEDENT............................................................................................... 13
8.1 Estoppel Certificates.................................................................................................. 13
8.2 Subordination, Non-Disturbance and Attornment Agreements................................. 13
8.3 Accuracy of Seller’s Representations and Warranties............................................... 13
8.4 Accuracy of Purchaser’ Representations and Warranties.......................................... 14
									
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8.5 Waiver of Right to Receive Disclosure Statement Right to Rescind......................... 14
9. REPRESENTATIONS, WARRANTIES AND COVENANTS........................................... 14
9.1 Seller’s Representations and Warranties................................................................... 14
9.1.1 Organization and Authority........................................................................... 14
9.1.2 No Conflict..................................................................................................... 14
9.1.3 Condemnation................................................................................................ 15
9.1.4 Litigation........................................................................................................ 15
9.2 Representations Remade............................................................................................ 15
9.3 Covenants................................................................................................................... 16
9.3.1 New Leases.................................................................................................... 16
9.3.2 Service Contracts........................................................................................... 16
9.3.3 Operations...................................................................................................... 16
9.3.4 Other Agreements.......................................................................................... 16
9.4 Purchaser’s Representations and Warranties............................................................. 17
9.4.1 ERISA............................................................................................................ 17
9.4.2 Organization and Authority........................................................................... 17
9.4.3 No Conflict..................................................................................................... 17
9.4.4 No Bankruptcy............................................................................................... 17
9.4.5 Executive Order............................................................................................. 17
9.4.6 FCPA............................................................................................................. 19
9.5 Survival...................................................................................................................... 19
9.6 Employee Lists........................................................................................................... 19
9.7 Utility Agreements..................................................................................................... 19
10. LIMITATION OF LIABILITY............................................................................................. 20
11. MISCELLANEOUS.............................................................................................................. 21
11.1 Entire Agreement....................................................................................................... 21
11.2 Assignment................................................................................................................ 21
11.3 Modifications............................................................................................................. 21
11.4 Time of Essence......................................................................................................... 21
11.5 Governing Law.......................................................................................................... 22
11.6 Notices....................................................................................................................... 22
11.7 “AS IS” SALE........................................................................................................... 22
11.8 TRIAL BY JURY; RESCISSION............................................................................. 25
11.9 Confidentiality........................................................................................................... 25
11.10 Reports....................................................................................................................... 26
11.11 Reporting Person........................................................................................................ 26
11.12 Section 1031 Exchange.............................................................................................. 26
11.13 Press Releases............................................................................................................ 26
11.14 Counterparts............................................................................................................... 27
11.15 Construction............................................................................................................... 27
									
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11.16 Attorneys’ Fees.......................................................................................................... 27
11.17 No Memorandum of Agreement................................................................................ 27
11.18 Severability................................................................................................................ 27

									
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REAL ESTATE SALE AGREEMENT

[333 108th Avenue NE, Bellevue, Washington]

THIS REAL ESTATE SALE AGREEMENT (this “Agreement”) is made effective as of February 12, 2020 (the “Effective Date”), by and between EQC OPERATING TRUST, a Maryland real estate investment trust (“Seller”), and BELLEVUE 108 AVENUE OWNER LLC, a Delaware limited liability company (“Purchaser”).
In consideration of the mutual covenants contained in this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Seller and Purchaser agree as follows:
1.PURCHASE AND SALE OF PROPERTY.  Subject to and in accordance with the terms and conditions set forth in this Agreement, Purchaser shall purchase from Seller and Seller shall sell to Purchaser a certain parcel of real estate (the “Real Property”) in the City of Bellevue, County of King, State of Washington, which parcel is more particularly described on Exhibit A attached hereto and commonly known as “Tower 333”, together with:  (a) all buildings and improvements owned by Seller and located on the Real Property (the “Improvements”); (b) any and all of Seller’s easements and privileges appertaining to the Real Property or Improvements; (c) all right, title and interest of Seller in and to leases, occupancy agreements and license agreements affecting the Property or any part thereof (“Leases”) which are in effect as of the Closing Date (the “Assignable Leases”); (d) all furniture, furnishings, fixtures, equipment and other tangible personal property owned by Seller, located on the Property and used solely in connection therewith (the “Tangible Personal Property”), but excluding (i) any computer hardware and software, (ii) any item containing a logo, name or mark identifying Seller or Seller’s Affiliates (as defined in Section 10) and (iii) the items set forth on Exhibit B of that certain letter of even date herewith from Seller to Purchaser and countersigned by Purchaser (the “Company Disclosure Letter”); (e) all right, title and interest of Seller under any contract, agreement or license, whether written or oral, with respect to the maintenance, service, advertising, ownership or operation of the Real Property and the Improvements (“Service Contracts”) which are in effect as of the Closing Date, but excluding (i) Service Contracts which are not assignable without cost (unless Purchaser elects by written notice to Seller on or before the fifth (5th) Business Day prior to Closing to assume any such contracts, in which case Purchaser shall be responsible for such costs) or third party consent (to the extent such third party consent is not obtained on or prior to the Closing Date), (ii) Service Contracts designated as “National” or “Regional”, (iii) property management and leasing brokerage agreements or (iv) any written agreement or contract relating to any existing financing encumbering any of the Property (a list of Service Contracts in effect as of the Effective Date is attached as Exhibit C of the Company Disclosure Letter) (to the extent assumed by Purchaser at Closing in accordance with this Agreement, the “Assumed Service Contracts”); (f) all right, title and interest of Seller under any contracts for work or improvements at the Property (“Construction Contracts”), and which are in effect as of the Closing Date to the extent that work thereunder is not completed as of the Closing Date (“Assignable Construction Contracts”) (a list of Construction Contracts in effect as of the Effective Date is attached as Exhibit D of the Company Disclosure Letter) and (g) all Asset-Related Property (as defined on Schedule A hereto); all to the extent applicable to the period from and after the Closing Date (as defined in Section 4 below), except as expressly set forth to the contrary in this 
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Agreement; Items (a) through (g) above, together with the Real Property, are collectively referred to in this Agreement as the “Property”; provided, however, the term “Property” expressly excludes all property owned by tenants or other users or occupants of the Property, all rights with respect to any refund of taxes applicable to any period prior to the Closing Date (as defined in Section 4 below), all rights to any insurance proceeds or settlements for events occurring prior to Closing (subject to Section 5 below) and all property in the management office of the Property owned by the Property Manager (as defined in Section 4.1 below).
2.PURCHASE PRICE.  The total consideration to be paid by Purchaser to Seller for the Property is Four Hundred One Million Five Hundred Thousand and No/100 Dollars ($401,500,000.00) (the “Purchase Price”), allocated as set forth on Exhibit E of the Company Disclosure Letter.
2.1   Earnest Money.  By Noon (Eastern time) on the Effective Date, Purchaser shall deliver to the title company identified in the Company Disclosure Letter (in its capacity as escrow agent, the “Escrow Agent”) the sum of Twenty Million Dollars and No/100 Dollars ($20,000,000.00) (together with any interest earned thereon and net of investment costs, the “Earnest Money”) to be received and held pursuant to the Escrow Agreement attached as Exhibit E-1 of the Company Disclosure Letter, which shall be executed by Purchaser and Seller concurrently with the execution of this Agreement.  The Earnest Money shall be invested in accordance with the terms of the Escrow Agreement.  Any and all interest earned on the Earnest Money shall be reported to Purchaser’s federal tax identification number.
2.2     Cash Balance.  At Closing, Purchaser shall pay to Seller the Purchase Price, less the Earnest Money, plus or minus the prorations and credits described in this Agreement and the Disclosure Letter (such amount, as adjusted, being referred to as the “Cash Balance”).  Purchaser shall pay the Cash Balance at Closing to Escrow Agent by federal funds wire.
3.EVIDENCE OF TITLE.
3.1    Permitted Exceptions.  Seller has delivered to Purchaser: (a) a current commitment for an ALTA Owner’s Title Insurance Policy (the “Title Commitment”), in the amount of the Purchase Price, issued by the title company identified in the Company Disclosure Letter (in its capacity as title insurer, “Title Insurer”) as Commitment No. NCS-813509-07-LA2, dated November 13, 2019; (b) available copies of all title exception documents referred to in the Title Commitment, and (c) a current survey of the Real Property and the Improvements (“Survey”).  At Closing, Purchaser may cause the Title Commitment to be updated for purposes of issuance of an ALTA Owner’s Policy of Title Insurance  insuring fee simple title to the Real Property and the Improvements (the “Owner’s Policy”).  Purchaser and Seller agree that at Closing, the Property shall be conveyed subject only to the exceptions listed on Exhibit F-1 of the Company Disclosure Letter (“Permitted Exceptions”).
3.2 Matters After the Effective Date.  Between the Effective Date and the Closing Date, Purchaser may notify Seller in writing (the “Gap Notice”) of Purchaser’s objections to 
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any exceptions that (i) affect Purchaser or the Property in a manner which is adverse and is not de minimis, (ii) were not disclosed by the Title Commitment or Survey (other than, for the avoidance of doubt, any exception to the Title Commitment raised prior to the Effective Date for claims under recorded liens resulting from work contracted by Amazon) and (iii) are not set forth on Exhibit F-1 of the Company Disclosure Letter; provided, however, Purchaser must notify Seller of each such objection within three (3) Business Days after receiving written notice from Title Insurer or receipt of an update to the Survey notifying Purchaser of the existence of same (but in no event later than the day prior to the Closing Date unless Purchaser first learns of such exception on the Closing Date).  Any matters which are timely objected to by Purchaser shall be herein collectively called the “Title Objections”.  If Purchaser delivers a Gap Notice to Seller, Seller shall have until the date that is five (5) Business Days after Seller’s receipt of the Gap Notice (and in any event no later than the earlier of (x) two (2) Business Days after receipt of the Gap Notice or (y) the Closing Date) to provide written notice to Purchaser (“Seller’s Response”) specifying whether or not Seller elects to Cure such Title Objections.  “Cure” means (a) cause to be discharged of record, or (b) cause to be removed from the Owner’s Policy or insured over, in either case, in a manner reasonably acceptable to Purchaser, at Seller’s expense (provided if Purchaser disapproves an endorsement over a Required Removal Item, then such matter shall not be deemed a Required Removal Item but Purchaser shall maintain the right to terminate this Agreement as a result thereof pursuant to Section 3.2 hereof) (the “Endorsement Proviso”).  If Seller fails to provide Seller’s Response within the required period as set forth above,  Seller will be deemed to have elected not to Cure the Title Objections.  If Seller either elects or is deemed to have elected not to Cure any of the Title Objection(s), Purchaser shall either (1) waive such Title Objections (in which event such matters or exceptions shall be Permitted Exceptions and Purchaser will close in accordance with the terms of this Agreement), or (2) terminate this Agreement, in which event the Earnest Money shall be returned to Purchaser, at which time this Agreement shall, without further action of the parties, terminate and become null and void and neither party shall have any further rights or obligations under this Agreement, except for those which expressly survive termination of this Agreement prior to the earlier.  Such election must be made by Purchaser the earlier of (a) noon Central time on the Closing Date and (b) five (5) Business Days after Purchaser’s receipt of Seller’s Response to the Gap Notice (or, if Seller’s Response to the Gap Notice is not timely delivered, five (5) Business Days after the expiration of the time permitted for Seller to issue Seller’s Response to the Gap Notice).  Further, if Seller elects to Cure any matters or exceptions and fails to do so on or before the Closing Date and is otherwise unable to convey fee title to the Property to Purchaser at Closing subject only to Permitted Exceptions (provided that Seller may extend the Closing Date for such period as shall be reasonably required to cause Title Insurer to remove or discharge over such matters and exceptions (but not exceeding thirty (30) days) in the aggregate), Purchaser shall have the option, as its sole and exclusive remedy, to either (i) waive the unsatisfied objections (in which event such matters or exceptions shall be Permitted Exceptions) and close, or (ii) terminate this Agreement, in which event the Earnest Money shall be returned to Purchaser, at which time this Agreement shall, without further action of the parties, terminate and become null and void and neither party shall have any further rights or obligations under this Agreement, except for those which expressly survive termination of this Agreement.  If Purchaser does not elect to terminate this Agreement, Purchaser shall consummate the Closing and accept 
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title to the Property subject to all such exceptions and matters (in which event, all such exceptions and matters shall be deemed Permitted Exceptions).  Notwithstanding anything in this Agreement to the contrary but subject to the Endorsement Proviso, Seller shall be obligated at or prior to Closing to Cure all Required Removal Items (as defined on Schedule A hereto); provided, however, in the event that there exists one or more Monetary Encumbrance(s) (as defined on Schedule A hereto) in an aggregate amount in excess of the Monetary Encumbrance Cap (as defined on Schedule A hereto), then Seller shall not be required to cause such Monetary Encumbrance(s) to be removed and the Purchaser may elect to (i) accept title to the Property subject to such Monetary Encumbrance(s) at Closing and receive a credit to the Purchase Price in the amount of the Monetary Encumbrance Cap or (ii) to terminate this Agreement, in which event the Earnest Money shall be returned to Purchaser, at which time this Agreement shall, without further action of the parties, terminate and become null and void and neither party shall have any further rights or obligations under this Agreement, except for those which expressly survive termination of this Agreement.
4.CLOSING.  The payment of the Purchase Price, the transfer of title to the Property, and the satisfaction of all other terms and conditions of the transaction contemplated by this Agreement (the “Closing”) shall occur at noon Pacific time on March 12, 2020 (such day, as the same may be extended pursuant to Section 3.2 hereof, this Section 4 or Section 2 of the Company Disclosure Letter), being sometimes referred to as the “Closing Date”), through escrow at the office of Title Insurer identified in the Company Disclosure Letter.  Purchaser may extend the originally scheduled Closing Date for a period of up to thirty (30) days upon (i) written notice to Seller given at or prior to noon central on the then-scheduled Closing Date (the “Extension Notice”) and (ii) the deposit of additional Earnest Money in the amount of Five Million Dollars ($5,000,000) which shall be deemed “Earnest Money” for all purposes hereunder and which shall be deposited with Escrow Agent substantially simultaneously with the delivery by Purchaser of the Extension Notice.  Seller may elect to extend the originally scheduled Closing Date to a date no more than ten (10) Business Days from the originally scheduled Closing Date by written notice to Purchaser no less than three (3) Business Days prior to the originally scheduled Closing Date.  If the date for Closing provided above falls on a day which is not a Business Day, then the Closing Date will be the next Business Day.
4.1 Seller’s Closing Deliveries.  At Closing, Seller shall execute (as necessary) and deliver to Purchaser (either through escrow or as otherwise provided below) each of the documents described below: (i) one original Bargain and Sale Deed in form attached hereto as Exhibit F; (ii) two original counterparts of a bill of sale and assignment and assumption of Assignable Leases, Assignable Service Contracts and Assignable Construction Contracts, in the form attached hereto as Exhibit G (the “Bill of Sale and General Assignment”); (iii) one original notice letter to tenants, substantially in the form attached hereto as Exhibit H; (iv) one original notice letter to each vendor or contractor under the Assumed Contracts and the assumed Construction Contracts in the form attached hereto as Exhibit I; (v) Seller’s non-foreign affidavit, in the form attached hereto as Exhibit J; (vi) one counterpart of the Joint Closing Statement (as defined in Section 4.3 below); (vii) one counterpart of the final and agreed-upon closing statement prepared by Escrow Agent (the “Escrow Agent’s Closing Statement”); (viii) evidence of termination of (a) any existing master property management agreement with Equity Commonwealth Management LLC, a Delaware limited liability company (“EQC Management”), (b) any property management 
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company identified in the Company Disclosure Letter (any such entity, together with EQC Management, individually and/or collectively, “Property Manager”), (c) any Affiliated Agreement; (d) all Service Contracts other than the Assumed Contracts; (ix) such transfer tax forms as are required by law, including, but not limited to, a Washington Real Estate Excise Tax Affidavit; (x) a certificate confirming, subject to Section 9.2 below, Seller’s representations and warranties as if made on the Closing Date (the “Transfer Documents”); (xi) subject to Section 4.4.3 assignments of Seller’s rights to any security deposit that is not in the form of cash; (xii) an affidavit in the form of Exhibit R to the Company Disclosure Letter (“Title Affidavit”) and (xiii) such evidence of Seller’s organization, power and authority as Title Insurer may reasonably request.  To the extent that any Service Contract is not to be assigned at Closing in accordance with Section 1 above such contract shall not be assigned (each such contract, a “Terminated Contract”).  To the extent any Construction Contract is not to be assigned at Closing in accordance with Section 1 above, and the work thereunder is not completed by the Closing Date, the parties shall in good faith attempt to agree upon a delegation or other transfer of duties and rights thereunder which comply with the terms and conditions of such Construction Contract.  The Joint Closing Statement and Escrow Agent’s Closing Statement may be signed in facsimile or PDF counterparts on the Closing Date.  To the extent available, Seller shall leave all of the original Leases, Assignable Service Contracts, keys, plans and specifications, licenses and permits pertaining to the Property at the Real Property.
4.2 Purchaser’s Closing Deliveries.  At Closing, Purchaser shall deliver or cause to be delivered to Seller executed counterparts of the Bill of Sale and General Assignment, the Assumption (as defined in the Company Disclosure Letter), the Joint Closing Statement, the Escrow Agent’s Closing Statement and the Transfer Documents such evidence of Purchaser’s organization, power and authority as Seller or Title Insurer may reasonably request, and a certificate updating Purchaser’s representations and warranties as if made on the Closing Date.
4.3 Closing Prorations and Adjustments.  The provisions of this Section 4.3 shall survive the Closing.  Seller shall prepare a statement of the prorations and adjustments required by this Agreement (the “Joint Closing Statement”) and submit it to Purchaser for approval at least two (2) Business Days prior to the Closing Date.  The items listed below are to be prorated or adjusted as of 11:59 p.m. Pacific Time on the day preceding the Closing Date (it being understood that, for purposes of prorations and adjustments, Seller shall be deemed the owner of the Property on the day immediately preceding the Closing Date and Purchaser shall be deemed the owner of the Property as of the day of the Closing Date; provided, however, that in the event any of the Leases provide that a tenant is to directly pay any of the expenses set forth below in this Section 4.3 to a third party other than Seller, then such amount shall not be prorated).
4.3.1 Taxes.  Real estate and personal property taxes and assessments (collectively “Taxes”) for the fiscal tax year in which Closing occurs shall be prorated based upon the Taxes payable during such fiscal tax year regardless of the period for which such Taxes are assessed (i.e., on a cash, not an accrual basis) and 
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assuming Taxes payable in installments are paid in installments. Such proration shall be final and not reprorated after Closing.
Such proration shall be made on the basis of the number of days in such fiscal tax year of Closing that the Property will have been owned by Seller and Purchaser, respectively, taking into account any amount of Taxes for the fiscal tax year in which Closing occurs paid by Seller prior to Closing.
If the amount of Taxes payable during the entire fiscal tax year in which Closing occurs is not known at Closing, then the proration shall be made on the basis of the amount of the tax bill(s) for the then most recent fiscal year for which full tax bill(s) have been issued (and, for the avoidance of doubt, any such proration shall be final and not reprorated after Closing). If the amount of Taxes payable during the fiscal tax year in which Closing occurs is known at Closing, then the proration shall be made on the basis of the full amount of Taxes payable during the fiscal tax year in which Closing occurs (such amount, in either case, the “Tax Amount”).
At Closing, as applicable, either (a) if the amount, if any, of Taxes paid by Seller for the fiscal tax year of Closing is less than the portion of the Tax Amount for the fiscal tax year of Closing which relates to the period prior to Closing, then Purchaser shall receive a credit at Closing equal to the amount by which (i) the portion of the Tax Amount for the fiscal tax year of Closing which relates to the period prior to Closing exceeds (ii) any amounts thereof paid by Seller, and Purchaser shall pay the applicable Taxes when due, or (b) if the amount, if any, of Taxes paid by Seller for the fiscal tax year of Closing is greater than the portion of the Tax Amount for the fiscal tax year of Closing which relates to the period prior to Closing, then Seller shall receive a credit at Closing equal to the amount by which (i) any amounts paid by Seller for Taxes for the fiscal tax year of Closing exceed (ii) the portion of the Tax Amount for the fiscal tax year of Closing which relates to the period prior to Closing, and Purchaser shall pay any additional applicable Taxes when due.  Seller shall pay at or prior to Closing any Taxes that would be delinquent as of the Closing if unpaid.
4.3.2 Rent.  To the extent collected by Seller prior to Closing, the “minimum” or “base” rent and parking revenue, if any (collectively, “Rent”), paid by tenants under the Assignable Leases for the calendar month in which the Closing occurs shall be prorated between Purchaser and Seller on the basis of the number of days of such month the Property will have been owned by Purchaser and Seller, respectively.  There shall be no proration of any rent which is delinquent as of the Closing Date.  Rent collected on or after the Closing Date shall be applied  first to the month of Closing, then to any delinquency existing for the period thereafter and then to any delinquency for the period prior to Closing.  Purchaser shall cause any rent applicable to the period prior to Closing to be remitted to Seller if, as, and when collected.  At Closing, Seller shall deliver to Purchaser a schedule of all delinquent rent. In the event any delinquent rent is omitted from such schedule, Seller shall not be deemed to have waived its rights to such rent.  Purchaser shall include the amount of delinquent rent in the first bills thereafter submitted to the tenants in question after 
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the Closing, and shall continue to do so for three (3) months thereafter.  Purchaser shall promptly deliver to Seller a copy of each such bill submitted to tenants.  After such three (3) month period following Closing, Seller may pursue remedies directly against delinquent tenants, but may not sue to evict or otherwise dispossess such tenants.  Any percentage rent collected in connection with any Assignable Leases shall not be prorated at Closing but shall be prorated after the applicable lease year is over and total revenues and breakpoint have been reconciled under the applicable Assignable Lease, with such revenues and breakpoint allocated evenly over the year in which Closing occurs on a daily basis and any amount payable from one party to the other shall be paid promptly after such reconciliation is required under the applicable Assignable Lease.
4.3.3 Security Deposits.  Purchaser shall receive a credit at Closing in the amount of any unapplied refundable cash security deposits under the Assignable Leases.  In addition, Seller shall use commercially reasonable efforts to assign (to the extent assignable) and deliver to the issuing bank at Closing any and all letters of credit and other instruments held by Seller as security deposits; provided, if such instrument is not assignable, then Seller shall use commercially reasonable efforts to provide Purchaser at Closing a substitute instrument in favor of Purchaser and, unless and until such instrument is so assigned or a substitute instrument is so provided, Seller shall hold such instrument in trust for Purchaser and shall draw upon such instrument and deliver the proceeds thereof to Purchaser as and when requested by Purchaser in writing.
4.3.4 Utilities.  Water, electric, telephone and all other utility and fuel charges, fuel on hand (at cost plus sales tax), and any other payments to utility companies shall be prorated.  If possible, utility prorations will be handled by final meter readings on the Closing Date, in which event no proration will be made at Closing with respect to utility bills.  If final readings are not possible, or if any such charges are not separately metered, such charges will be prorated on a daily basis based on the most recent period for which actual costs incurred are available.  Utility deposits shall be returned to Seller.
4.3.5 Service Contracts.  Amounts due and prepayments under Assumed Service Contracts (other than non-recurring, upfront payments by any vendor to Seller) shall be prorated, with Purchaser receiving a credit against the Purchase Price for all payments due or owing and unpaid under any Assumed Service Contracts as of the Closing Date.
4.3.6 Fees Payable.  Assigned license and permit fees, and similar fees and expenses of operation shall be prorated.
4.3.7 Tenant Inducement Costs, Leasing Commissions and Construction Contracts.
4.3.7.1 Tenant Inducements.  Purchaser shall be responsible for the payment of all of the following Tenant Inducement Costs (as defined below): 
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(a) those specifically identified as Purchaser’s obligation on Exhibit K-1 of the Company Disclosure Letter and (b) those payable under a New Lease entered into in accordance with the terms of this Agreement.  In addition, Purchaser shall reimburse Seller for the amount that Seller pays for the reasonable third-party legal services provided in connection with the negotiation and entering into of any New Lease in accordance with terms of this Agreement and incurred by Seller (i) in the amount set forth on Exhibit K-1 of the Company Disclosure Letter with respect to such costs incurred prior to the Effective Date or (ii) after the Effective Date.
Seller shall be responsible for the payment of those Tenant Inducement Costs specifically identified as Seller’s obligations on Exhibit K-1 of the Company Disclosure Letter and any Tenant Inducement Costs that are not the express obligation of Purchaser pursuant to this Agreement.
“Tenant Inducement Costs” means any amounts required under a Lease to be paid or credited by the landlord thereunder to or for the benefit of the tenant thereunder which is in the nature of a tenant inducement, including specifically, without limitation, tenant improvement costs, lease buyout costs (other than those accruing as a result of a buyout option executed by Purchaser after the Closing Date, which buyout costs shall be Purchaser’s sole and exclusive responsibility), moving, design, refurbishment and club membership allowances, “tenant allowances” in lieu of or as reimbursements for the foregoing; but specifically excluding loss of income resulting from any free rental period (it being agreed that Seller shall bear the loss resulting from any free rental period until the Closing Date and that Purchaser shall bear such loss from and after the Closing Date).
If, as of the Closing Date, Seller shall have paid or provided a credit to the tenant for any Tenant Inducement Costs for which Purchaser is responsible pursuant to this Section 4.3.7.1, Seller shall be credited with an amount equal to such Tenant Inducement Costs.  If, as of the Closing Date, Seller shall not have paid or provided a credit to the tenant for any Tenant Inducement Costs for which Seller is responsible to have paid or provided a credit to the tenant prior to the Closing Date in accordance with the provisions of this Section 4.3.7.1, Purchaser shall be credited with an amount equal to such Tenant Inducement Costs and Purchaser shall assume the obligation to pay the same.
4.3.7.2 Leasing Commissions.  Purchaser shall be responsible for the payment of all of the following leasing commissions: (a) those specifically identified as Purchaser’s obligation on Exhibit K-2 of the Company Disclosure Letter; and (b) those paid or payable in connection with any New Lease entered into in accordance with the terms of this Agreement.
Seller shall be responsible for the payment of those leasing commissions specifically identified as Seller’s obligations on Exhibit K-2 of the Company 
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Disclosure Letter and any leasing commissions that are not the express obligation of Purchaser pursuant to this Agreement.
If, as of the Closing Date, Seller shall have incurred any leasing commission for which Purchaser is responsible pursuant to this Section 4.3.7.2, Seller shall be credited with an amount equal to such leasing commission.  If, as of the Closing Date, Seller shall not have incurred any leasing commission for which Seller is responsible to have paid prior to the Closing Date in accordance with the provisions of this Section 4.3.7.2, Purchaser shall be credited with an amount equal to such leasing commission and Purchaser shall assume the obligation to pay the same.
4.3.7.3 Construction Contracts.  Purchaser and Seller shall each be responsible for the payment of amounts under Assignable Construction Contracts (or otherwise) as designated on Exhibit K-3 of the Company Disclosure Letter.
If, as of the Closing Date, Seller shall have incurred any costs under Assignable Construction Contracts for which Purchaser is responsible pursuant to this Section 4.3.7.3, Seller shall be credited with an amount equal to such costs.  If, as of the Closing Date, Seller shall not have incurred any costs under Assignable Construction Contracts for which Seller is responsible in accordance with the provisions of this Section 4.3.7.3, Purchaser shall be credited with an amount equal to such costs and Purchaser shall assume the obligation to pay the same.
4.3.8 Construction Management Fee.  Seller and Purchaser shall each be entitled to 50% of the construction management fee as set forth in Section 7 of Addendum 4 of the Amazon Lease (the “Construction Management Fee”).  Purchaser shall receive at Closing a credit in the amount of 50% of any portion of the Construction Management Fee received or retained by Seller out of the TI Allowance (as defined in the Amazon Lease) prior to Closing.  Seller shall receive 50% of any portion of the Construction Management Fee received or retained out of the TI Allowance (as defined in the Amazon Lease) by Purchaser following the Closing, in accordance with Section 4.7 hereof.  Purchaser shall pay Seller its 50% share of each installment of Construction Management Fee received or retained by Purchaser within five (5) Business Days of receipt or retention by Purchaser.
Except as to any proration which is deemed final under the provisions of this Section 4.3, if any item of income or expense set forth in this Section 4.3 is based on an estimate or is to be determined after Closing, then Seller and Purchaser shall make, and each shall be entitled to, an appropriate reproration to each such item in accordance with Section 4.7 hereof.  Any amounts due from one party to the other as a result of such reproration shall be paid promptly in cash to the party entitled thereto.  Seller and Purchaser hereby covenant and agree to make available to each other for review such records as are necessary to complete such reprorations.  The provisions of this Section 4.3 shall survive the Closing.
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4.4 Former Tenants.  Notwithstanding anything to the contrary contained in this Agreement, if Purchaser receives a payment from and after Closing from a tenant under a Lease which has expired as of the Closing Date, Purchaser shall promptly pay over such amount to Seller.
4.5 Reservation of Rights to Contest.  Notwithstanding anything to the contrary contained in this Agreement, Seller reserves the right to meet with governmental officials and to contest any reassessment or assessment of the Property or any portion thereof and to attempt to obtain a refund for any taxes previously paid for periods prior to the Closing Date; provided, however, that Seller shall not settle any such proceeding which could reasonably be expected to impact taxes owing for any period from and after the Closing without Purchaser’s prior written consent, which consent shall not be unreasonably withheld or delayed.  Seller shall retain all rights with respect to any refund of taxes applicable solely to any period prior to the Closing Date.
4.6 Transaction Costs.  Except as otherwise specifically set forth in this Agreement, the closing costs and other costs incurred in connection with the transactions contemplated by this Agreement shall be paid as follows:  (a) Seller shall pay for (i) the base premium payable to the Title Insurer in connection with the issuance of an ALTA standard owner’s title policy, (ii) one-half (1⁄2) of all escrow fees payable to Escrow Agent, and (iii) all transfer taxes, sales and use taxes, documentary stamps and intangible taxes and similar taxes or charges, if any, including without limitation all real estate excise tax related to the sale of the Real Property, including RCW Chapter 82.45; and (b) Purchaser shall pay for (i) all title insurance costs and fees in excess of the cost of ALTA standard owner’s coverage, including any for extended coverage, endorsements, coinsurance or reinsurance, and any loan policy charges, (ii)  all recording charges, (iii) intentionally omitted, and (iv) one-half (1⁄2) of all escrow fees payable to Escrow Agent.  Seller and Purchaser shall be responsible for the fees of their respective attorneys except as otherwise set forth herein.  Except as expressly set forth herein, Seller and Purchaser shall each be responsible for any additional costs and charges customarily charged to Seller or Purchaser, as applicable, in accordance with common escrow practices in King County, Washington.  To the extent any of the foregoing obligations are not paid at Closing, such obligations shall survive the Closing.
4.7 Reprorations.  All reprorations contemplated by this Agreement shall be completed within ninety (90) days after Closing, subject to extension solely to the extent necessary due to the unavailability of final information but in no event to exceed one hundred eighty (180) days after Closing.  The provisions of this Section 4.7 shall survive the Closing for one hundred eighty (180) days.
5.CASUALTY LOSS AND CONDEMNATION.  If, prior to Closing, the Property, or any part thereof shall be condemned, destroyed, or damaged by fire or other casualty, Seller shall promptly so notify Purchaser.  In the event of a Material Loss (as hereinafter defined), either Seller or Purchaser shall have the option to terminate this Agreement by giving notice to the other party within fifteen (15) days of the date Seller provides notice to Purchaser of the Material Loss (but no later than the Closing).  If the condemnation, destruction or damage does not result in a Material Loss, then Seller and Purchaser shall consummate the transaction contemplated by this Agreement notwithstanding such condemnation, destruction or damage.  If the transaction contemplated by this 
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Agreement is consummated, then (i) in the case of a condemnation, Purchaser shall be entitled to receive any condemnation proceeds, (ii) in the case of a casualty, Purchaser shall be entitled to receive (A) any proceeds of insurance under any policy(ies) of insurance applicable to the destruction or damage of the Property, (B) the amount of (i) any deductible and (ii) if and only if the loss not a Material Loss and Purchaser has no right to terminate this Agreement as a result of such casualty, the uninsured portion of such loss,  as a credit against the Purchase Price, and (C) any remaining cost to repair not covered by Seller’s insurance (if any); all net of repair costs incurred by Seller in accordance with the terms of this Agreement and (iii) Seller shall, at Closing, execute and deliver to Purchaser all customary proofs of loss and other similar items.  If Purchaser elects to terminate this Agreement in accordance with this Section 5, the Earnest Money shall be returned to Purchaser, at which time this Agreement shall, without further action of the parties, terminate and become null and void and neither party shall have any further rights or obligations under this Agreement, except for those which expressly survive termination of this Agreement.  For purposes of this Section 5, a “Material Loss” with respect to Purchaser’s right to terminate means (i) casualty, condemnation, damage or destruction that is reasonably estimated by Seller’s insurer or appraiser to cost or be valued at (as the case may be) more than TWENTY MILLION Dollars ($20,000,000.00) as to the Property or any portion thereof, or (ii) such damage, condemnation or destruction would permit Amazon to terminate its Lease and Amazon has not waived such right to terminate on or prior to the Closing Date, and with respect to Seller’s right to terminate means any casualty, condemnation, damage or destruction that is reasonably estimated by Seller’s insurer or appraiser to cost or be valued at (as the case may be) more than FORTY MILLION Dollars ($40,000,000.00) as to the Property or any portion thereof.
6.BROKERAGE.  Seller agrees to pay (pursuant to a separate agreement) upon Closing a brokerage commission due to the Broker (as defined in the Company Disclosure Letter) for services rendered in connection with the sale and purchase of the Property.  Seller and Purchaser shall each indemnify and hold the other harmless from and against any and all claims of all other brokers and finders claiming by, through or under the indemnifying party and in any way related to the sale and purchase of the Property, this Agreement or otherwise, including, without limitation, attorneys’ fees and expenses incurred by the indemnified party in connection with such claim.
7.DEFAULT AND REMEDIES.
7.1 Pre-Closing Purchaser’s Remedies.  Notwithstanding anything to the contrary contained in this Agreement, if Closing does not occur due to a Seller default, then, as Purchaser’s sole and exclusive remedy hereunder and at Purchaser’s option, either (a) the Earnest Money shall be returned to Purchaser, at which time this Agreement shall, without further action of the parties, terminate and become null and void and neither party shall have any further rights or obligations under this Agreement, except for those which expressly survive termination of this Agreement, or (b)  Purchaser may seek specific performance of this Agreement, but not damages.  Purchaser’s failure to seek specific performance within forty-five (45) days following the date upon which Closing was to have occurred shall constitute its election to proceed under clause (a) above.
7.2 Pre-Closing Seller’s Remedies.  PURCHASER AND SELLER ACKNOWLEDGE THAT IT WOULD BE EXTREMELY IMPRACTICAL AND DIFFICULT TO ASCERTAIN THE ACTUAL DAMAGES WHICH WOULD BE 
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SUFFERED BY SELLER IF PURCHASER FAILS TO CONSUMMATE THE PURCHASE AND SALE CONTEMPLATED HEREIN FOR ANY REASON OTHER THAN SELLER’S DEFAULT HEREUNDER OR THE FAILURE OF A CONDITION PRECEDENT TO PURCHASER’S OBLIGATION TO CLOSE HEREUNDER.  PURCHASER AND SELLER HAVE CONSIDERED CAREFULLY THE LOSS TO SELLER OCCASIONED BY TAKING THE PROPERTY OFF THE MARKET AS A CONSEQUENCE OF THE NEGOTIATION AND EXECUTION OF THIS AGREEMENT, THE EXPENSES OF SELLER INCURRED IN CONNECTION WITH THE PREPARATION OF THIS AGREEMENT AND SELLER’S PERFORMANCE HEREUNDER, AND THE OTHER DAMAGES, GENERAL AND SPECIAL, WHICH PURCHASER AND SELLER REALIZE AND RECOGNIZE SELLER WILL SUSTAIN BUT WHICH SELLER CANNOT AT THIS TIME CALCULATE WITH ABSOLUTE CERTAINTY.  BASED ON ALL THOSE CONSIDERATIONS, PURCHASER AND SELLER HAVE AGREED THAT THE DAMAGE TO SELLER IN SUCH EVENT WOULD REASONABLY BE EXPECTED TO BE EQUAL TO THE SUM OF THE EARNEST MONEY.  ACCORDINGLY, IF CLOSING DOES NOT OCCUR DUE TO FAILURE OF PURCHASER TO CLOSE AND PAY THE PURCHASE PRICE, THEN SELLER SHALL HAVE THE RIGHT, AS ITS SOLE AND EXCLUSIVE REMEDY, TO RETAIN THE EARNEST MONEY AS FULL AND COMPLETE LIQUIDATED DAMAGES.  NOTWITHSTANDING THE FOREGOING, NOTHING IN THIS SECTION 7.2 SHALL LIMIT ANY INDEMNIFICATION OBLIGATION OF PURCHASER UNDER THIS AGREEMENT.
7.3 Post-Closing Remedies.  After Closing, Seller and Purchaser shall, subject to the terms and conditions of this Agreement including without limitation Section 10 below, have such rights and remedies as are available at law or in equity, except that neither Seller nor Purchaser shall be entitled to recover from the other consequential, punitive or exemplary damages (other than any such damages due to third parties).  This Section 7.3 shall survive the Closing.
8.CONDITIONS PRECEDENT.
8.1 Purchaser Conditions.  The following events shall be conditions precedent to the obligation of Purchaser to consummate the Closing hereunder, provided, however, that the Purchaser shall have the right, in its sole and absolute discretion, to waive any of such conditions precedent in writing on or before the Closing Date:
8.1.1 Estoppel Certificates.  Purchaser shall have timely received the Required Estoppel Certificate as outlined in the Company Disclosure Letter.
8.1.2 Accuracy of Seller’s Representations and Warranties.  Each of Seller’s representations and warranties set forth in Section 9.1 below and in the Company Disclosure Letter shall be materially true and correct (without giving effect to any qualification as to materiality or other correlative terms) as of the Closing Date as though such representations and warranties were made on and as of the Closing Date unless such representation or warranty was made specifically only as of the Effective 
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Date (or shall be materially true and correct subject to any change thereto resulting from any actions taken by Seller permitted under Section 9.2). If the foregoing condition is not satisfied and (a) such failure would result in a material adverse effect on the Property or Purchaser (it being acknowledged and agreed by the parties that only a failure of the foregoing condition that relates to any matter that gives rise to, or could reasonably be expected to give rise to, any loss, damage, liability, cost or expense (including the diminution in value of the Property) (a “Loss”) in excess of Four Million Dollars ($4,000,000) shall be deemed to have a material adverse effect on the Property and Purchaser) and (b) Seller has not cured such failure as of the Closing Date (which cure shall cause the applicable representation(s) and warranty(ies) to become true and correct), then Purchaser, as Purchaser’s sole remedy, shall have the right to terminate this Agreement and receive the return of the Earnest Money by delivering written notice thereof to Seller on or before the Closing Date, and upon timely delivery of such written notice to Seller, this Agreement shall, without further action of the parties, terminate and become null and void and neither party shall have any further rights or obligations under this Agreement, except for those which expressly survive termination of this Agreement.  If Purchaser does not terminate this Agreement pursuant to its rights under this Section 8.1.2 then such representations and warranties shall be deemed modified to take into account any such fact of which Purchaser was aware prior to or at Closing.  In the event Purchaser closes with Purchaser’s Knowledge that a representation or warranty is untrue, except to the extent that Purchaser did not have the right to terminate this Agreement on the basis of such breach, Purchaser is prohibited from making any claims against Seller as a result thereof following the Closing; provided, Purchaser shall not have the right to make any such claim following the Closing unless Purchaser, on or prior to Closing, gave notice to Seller of such claim.
8.1.3 Waiver of Right to Receive Disclosure Statement Right to Rescind.  PURSUANT TO CHAPTER 64.06 RCW, WITH RESPECT TO THE PROPERTY, PURCHASER HEREBY WAIVES ITS RIGHT TO RECEIVE THE DISCLOSURE STATEMENT REQUIRED UNDER CHAPTER 64.06 RCW (“DISCLOSURE STATEMENT”).  Purchaser is hereby provided with the “Environmental” section of the Disclosure Statement attached as Exhibit P to the Company Disclosure Letter.  Purchaser agrees that any information discovered by Purchaser concerning the Property prior to Closing will not obligate Seller to prepare and deliver to Purchaser a revised or updated Disclosure Statement, regardless of the source of any new information.  PURCHASER ALSO HEREBY WAIVES, TO THE FULLEST EXTENT PERMISSIBLE BY LAW, THE RIGHT TO RESCIND THIS AGREEMENT PURSUANT TO ANY PROVISION OF CHAPTER 64.06 RCW.  IT IS PURCHASER’S INTENT THAT ANY DISCLOSURE STATEMENT PROVIDED BY SELLER WILL NOT BE RELIED UPON BY PURCHASER AND WILL NOT GIVE PURCHASER ANY RIGHTS WITH RESPECT TO THE PROPERTY UNDER THIS AGREEMENT.  THIS WAIVER OF THE RIGHT TO RESCIND APPLIES TO THE DISCLOSURE STATEMENT PROVIDED TO PURCHASER AND APPLIES PROSPECTIVELY TO ANY UPDATED OR 
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REVISED DISCLOSURE STATEMENTS THAT MAY BE PROVIDED BY SELLER TO PURCHASER.
8.1.4 Title.  Provided that Purchaser complies with all requirements to be complied with by the proposed insured as set forth in the Title Commitment (which are within the sole control of Purchaser and excluding any requirements that are the obligation of Seller pursuant to this Agreement), the Title Company shall be irrevocably and unconditionally committed to issue the Owner’s Policy subject only to the Permitted Exceptions to Purchaser.  For the avoidance of doubt, under no circumstances will either (x) the existence of the right of first offer pursuant to the Amazon Lease with respect to the sale to Purchaser or (y) an exception for claims under recorded mechanics (or similar recorded) liens arising out of work contracted by any tenant, be deemed a “Permitted Exception” hereunder.
8.1.5 Documents.  Seller shall have delivered to or for the benefit of the other party, on or before the Closing Date, all of the documents and items required to be delivered pursuant to Section 4 hereof.
8.1.6 Covenants.  Seller shall have performed or complied in all material respects with each obligation and covenant required by this Agreement and the Company Disclosure Letter to be performed or complied with by Seller on or before the Closing Date.
8.1.7 Orders.  No order or injunction of any court or administrative agency of competent jurisdiction nor any statute, rule, regulation or executive order promulgated by any governmental authority of competent jurisdiction shall be in effect as of the Closing Date which restrains or prohibits the transfer of the Property or any portion thereof.
8.1.8 Proceedings.  No action, suit or other proceeding shall be pending which shall have been brought to restrain or prohibit the transfer of the Property.
8.1.9 Amazon Lease.  The Amazon Lease shall be in full force and effect.
If any of the foregoing conditions are not satisfied as of the Closing Date (other than due to Purchaser’s breach of this Agreement), then Purchaser shall have the right, at Purchaser’s sole option but without limiting any of Purchaser’s rights and remedies under this Agreement if such failure of condition is also a default by Seller, to terminate this Agreement by written notice to Seller, whereupon the Earnest Money shall be promptly returned to Purchaser and at which time this Agreement shall, without further action of the parties, terminate and become null and void and neither party shall have any further rights or obligations under this Agreement, except for those which expressly survive termination of this Agreement.
8.2 Seller Conditions.  The following events shall be conditions precedent to the obligation of Seller to consummate the Closing hereunder, provided, however, that the Seller shall have the right, in its sole and absolute discretion, to waive any of such conditions precedent in writing on or before the Closing Date:
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8.2.1 Accuracy of Purchaser’ Representations and Warranties.  Each of Purchaser’s representations and warranties set forth in Section 9.4 below shall be materially true and correct as of the Closing.
8.2.2 Covenants.  Purchaser shall have performed or complied in all material respects with each obligation and covenant required by this Agreement and the Company Disclosure Letter to be performed or complied with by Purchaser on or before the Closing Date.
8.2.3 Documents.  Purchaser shall have delivered to or for the benefit of the other party, on or before the Closing Date, all of the documents and items required to be delivered pursuant to Section 4 hereof or pursuant to the Company Disclosure Letter.
8.2.4 Payment.  Escrow Agent shall have received the Purchase Price in accordance with Section 2 hereof and all other amounts due to Seller hereunder.
If any of the foregoing conditions are not satisfied as of the Closing Date (other than due to Seller’s breach of this Agreement), then Seller shall have the right, at Seller’s sole option, to terminate this Agreement by written notice to Purchaser, whereupon the Earnest Money shall be promptly paid to Seller at which time this Agreement shall, without further action of the parties, terminate and become null and void and neither party shall have any further rights or obligations under this Agreement, except for those which expressly survive termination of this Agreement.
9.REPRESENTATIONS, WARRANTIES AND COVENANTS.
9.1 Seller’s Representations and Warranties.  Subject to Section 9.5 below, Seller hereby represents and warrants to Purchaser as to the following matters:
9.1.1 Organization and Authority.  Seller is duly organized and in good standing under the laws of the state of its organization.  Seller has the power and authority under its organizational documents to sell, transfer, convey and deliver the Property to be sold and purchased hereunder, and all action and approvals required thereunder have been duly taken and obtained.
9.1.2 No Conflict.  The execution and delivery of this Agreement, the consummation of the transactions provided for herein and the fulfillment of the terms hereof will not result in a breach of any of the terms or provisions of, or constitute a default under, any provision of Seller’s organizational documents. No (i) consent, waiver, license, permit, approval or authorization is required from any person or entity (that has not already been obtained), or (ii) registration, filing or declaration with, any court, administrative agency or commission or other governmental authority or instrumentality, domestic or foreign, is required in connection with the execution and delivery of this Agreement by Seller or the performance by Seller of the transactions contemplated hereby.
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9.1.3 Condemnation.  To Seller’s Knowledge, Seller has not received from any governmental authority any written notice that any condemnation, eminent domain or similar action has been filed or is pending against the Property or any part thereof and to Seller’s Knowledge, no such action is threatened against the Property.
9.1.4 Litigation.  Except as set forth on Exhibit N of the Company Disclosure Letter, Seller has not been served with any material litigation, actions, suits, arbitrations, claims, government investigations or proceedings which is still pending, or to Seller’s Knowledge, threatened in writing, against Seller with respect to its ownership or operation of the Property.
9.1.5 Other Matters.  Subject to Section 9.5 below, Seller hereby represents and warrants to Purchaser as to matters described in Section 7 of the Company Disclosure Letter.
9.1.6 No Bankruptcy.  Seller has not (a) made a general assignment for the benefit of creditors, (b) filed any voluntary petition in bankruptcy or suffered the filing of any involuntary petition by Purchaser’s creditors, (c) suffered the appointment of a receiver to take possession of all, or substantially all, of Seller’s assets, (d) suffered the attachment or other judicial seizure of all, or substantially all, of Seller’s assets, (e) admitted in writing its inability to pay its debts as they come due, or (f) made an offer of settlement, extension or composition to its creditors generally.
9.1.7 FCPA.  Neither Seller nor any of its directors, officers, agents, employees or other persons associated with or acting on behalf of Seller (i) has violated or is in violation of any provision of any applicable law or regulation implementing the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions or any applicable provision of the U.S. Foreign Corrupt Practices Act of 1977, as amended, the U.K. Bribery Act 2010, or any other applicable law concerning bribery or anti-corruption, including, in each case, the rules and regulations thereunder, (ii) has taken, is currently taking or will take any action in furtherance of an offer, payment, gift or anything else of value, directly or indirectly, to any person while knowing that all or some portion of the money or value will be offered, given or promised to anyone to improperly influence official action, to obtain or retain business or otherwise to secure any improper advantage or (iii) has otherwise made any bribe, influence payment, unlawful kickback or other unlawful payment.
9.1.8 ERISA.  Seller is not and shall not be, and no portion of the assets of the Property constitute or shall constitute the assets of, a “benefit plan investor” within the meaning of 29 C.F.R. §2510.3-101, as modified by Section 3(42) of ERISA, and Seller is not a “governmental plan” within the meaning of Section 3(32) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), and the execution of this Agreement and the sale of the Property by Seller is not subject to state statutes regulating investments of and fiduciary obligations with respect to governmental plans.
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All references in this Agreement or in the Company Disclosure Letter to “Seller’s Knowledge” or words of similar import (whether or not such words may be capitalized), shall refer only to the conscious actual (and not implied or constructive) knowledge of the Seller’s Representative (as defined in the Company Disclosure Letter) and shall not be construed to refer to the knowledge of any other member, officer, director, trustee, shareholder, venturer, consultant, employee, agent, property manager or representative of Seller, its partners or members (including without limitation Seller’s counsel, Property Manager or any broker), or of any affiliate of any of the foregoing, or to impose or have imposed upon the Seller’s Representative any duty to investigate the matters to which such knowledge, or the absence thereof, pertains (except that Seller’s Representative has requested that the individual employee of Property Manager with direct responsibility for managing the Property provide Seller’s Representative with information known to such individual that is salient to the representations given in this Section 9.1 above).  There shall be no personal liability on the part of the Seller’s Representative or any employee of Property Manager arising out of any representations or warranties made herein.
All references in this Agreement or in the Company Disclosure Letter to “Purchaser’s Knowledge” or words of similar import (whether or not such words may be capitalized), shall refer only to the conscious actual (and not implied or constructive) knowledge of the Purchaser’s Representative (as defined in the Company Disclosure Letter) and shall not be construed to refer to the knowledge of any other member, officer, director, trustee, shareholder, venturer, consultant, employee, agent, property manager or representative of Purchaser, its partners or members (including without limitation Purchaser’s counsel or any broker), or of any affiliate of any of the foregoing, or to impose or have imposed upon the Purchaser’s Representative any duty to investigate the matters to which such knowledge, or the absence thereof, pertains.  There shall be no personal liability on the part of the Purchaser’s Representative arising out of any representations or warranties made herein.
9.2 Representations Remade.  As of Closing, Seller shall be deemed to remake and restate the representations set forth in Section 9.1 of this Agreement and Section 7 of the Company Disclosure Letter, except that the representations may be updated at or prior to the Closing Date by delivering written notice to Purchaser that any of Seller’s representations or warranties contained herein are untrue or incorrect; provided, however, that subject to the following sentence, any amendment or supplement to Seller’s representations shall have no effect for the purposes of determining whether the condition precedent to Purchaser’s obligation to close on the Closing Date set forth in Section 8.1.2 has been satisfied.  Notwithstanding the foregoing, the condition set forth in Section 8.1.2 shall not be deemed to have failed if any representation or warranty becomes untrue or incorrect due to (i) new Service Contracts or amendments to Service Contracts entered into in accordance with this Agreement or Service Contracts that have expired by their stated terms, (ii) new Construction Contracts or amendments to Construction Contracts entered into in accordance with this Agreement or all work being complete and all amounts due the contractor being paid with respect to any Construction Contract in accordance with the terms of this Agreement, (iii) 
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new Leases or amendments to Leases entered into in accordance with this Agreement, (iv) rent prepayments for which Purchaser receives a credit at Closing, (v) changes to Exhibits K-1, K-2 or K-3 of the Company Disclosure Letter to take into account changes in payments made or the completion of work in accordance with the terms of this Agreement and the applicable Lease, or (vi) any condemnation action initiated or threatened against the Property; provided that, in each instance under clauses (i) through (vi), the representation or warranty did not become untrue or incorrect as a result of any act taken by Seller in violation of this Agreement or omission of Seller in violation of this Agreement.
9.3 Covenants.  Seller hereby covenants and agrees with Purchaser as to the following matters.
9.3.1 Leasing.  For purposes of this Agreement, any Lease entered into after the Effective Date and any modification, amendment, restatement or renewal of any existing Lease entered into after the Effective Date, in each case in accordance with the terms of this Agreement, shall be referred to as a “New Lease”.  Seller shall not enter into any New Lease or terminate or accept the surrender or termination of any Lease without Purchaser’s prior written consent, which may be granted or withheld in Purchaser’s sole discretion. Without the prior written consent of Purchaser, which shall be the same standard that Seller is subject under any Lease, Seller shall not consent to any request under any Lease, including without limitation the right to any assignment, sublease or concession or waiver, to the extent Seller has the right to approve the same pursuant to the terms of such Lease.  If Purchaser does not respond in writing to Seller’s request for approval or disapproval of a New Lease within five (5) Business Days after Purchaser’s receipt of Seller’s request, Purchaser shall be deemed to have approved such New Lease.
9.3.2 Contracts.  After the Effective Date, Seller shall not enter into any new contract, equipment lease or other agreement which would be binding on Purchaser, or cancel, modify or renew any existing Service Contracts or Construction Contracts which would be binding on Purchaser, without the prior written consent of Purchaser, which consent shall not be unreasonably withheld or delayed, unless such new Service Contracts are cancelable by Seller upon thirty (30) days’ notice without payment of any fees or penalty (or Seller pays any such fees or penalty).  If Purchaser fails to respond to Seller’s request for consent with respect to any such action within five (5) Business Days after receipt of Seller’s request, such consent shall be deemed given.  Seller shall not enter into any new Construction Contracts without the prior written consent of Purchaser except in case of emergency for which compliance with the consent requirements set forth in this Section 9.3.2 would reasonably be expected to result in a material loss of property or risk to health and safety (each, an “Emergency Contract”), provided Purchaser shall be under no obligation to assume any such Emergency Contract unless such Emergency Contract is cancelable upon thirty (30) days’ notice without payment of any fees or penalty.  Seller shall use commercially reasonable efforts to obtain the consent of any vendor under a Service Contract  or Construction Contract that requires third party consent to be assigned.  For purposes of this Section 9.3.2, “commercially reasonable efforts” shall mean (a) 
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submitting one (1) written request to the counterparty to each such Service Contract for such counterparty’s consent to assignment; (b) completing such counterparty’s transfer form, if any, provided that Seller shall incur no costs in connection with same and (c) continued follow-up with each such counterparty if and when reasonably requested by Purchaser, and Seller shall not be required to incur any costs in connection therewith..
9.3.3 Operations.  After the Effective Date, Seller shall operate the Property in the normal course of Seller’s business and maintain the Property in substantially the same condition as of the Effective Date, ordinary wear and tear excepted, and subject to Section 5 above.  Notwithstanding anything in the preceding sentence to the contrary, in no event shall Seller be required to make any capital improvements to the Property except as may be required by the Leases to be made prior to the Closing Date.  Seller shall not make any material changes or alterations of the Property without Purchaser’s prior written consent except in case of emergency or as necessary to complete the Landlord Work in accordance with the existing Construction Contracts, which consent may be given or withheld in Purchaser’s sole and absolute discretion or remove any Personal Property from the Property, unless such item is replaced by an item of similar condition, utility and value.
9.3.4 Other Agreements.  After the Effective Date, and except as required by law or by any of the Permitted Exceptions or as otherwise permitted under this Agreement, Seller shall not become party to agreements granting an easement or right-of-way on, under or about the Property, and Seller shall not become party to any agreements granting easements or rights-of-way in favor of the Property or otherwise encumber, or grant interests in, the Property without the consent of Purchaser, which consent may be given or withheld in Purchaser’s sole and absolute discretion.
9.3.5 Existing Management Agreement and Affiliate Agreements. Seller shall terminate the existing management agreement, all Affiliate Agreements and all leasing brokerage agreements with respect to the Property, at or prior to Closing. All termination fees and any other costs and expenses relating to such termination shall be the responsibility solely of Seller, and Purchaser shall not have any responsibility or liability thereunder. Seller’s obligations under this Section 9.3.5 shall survive the Closing.
9.3.6 Terminated Contracts.  Seller shall terminate the Terminated Contracts effective as of the Closing.  All termination fees and any other costs and expenses related to such terminations shall be the responsibility solely of Seller, and Purchaser shall not have any responsibility or liability therefor.
9.3.7 Company Disclosure Letter.  Each covenant of Seller set forth in the Company Disclosure Letter shall be incorporated herein by reference and shall be deemed a covenant of Seller pursuant to this Section 9.3.
9.3.8 Insurance.  From the Effective Date until Closing or the earlier termination of this Agreement, Seller shall maintain fire and extended coverage and 
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commercial liability insurance on the Property which is at least equivalent in all material respects to the insurance policies covering the Real Property as of the Effective Date.
9.3.9 Defaults; Violation Notices.  From the Effective Date until the Closing or earlier termination of this Agreement, Seller shall (i) deliver to Purchaser reasonably promptly after receipt thereof copies of any written notices of violations of law or other material notices received by Seller, Property Manager or any Seller Affiliate, and (ii) advise Purchaser promptly of any notices of default or other material notices delivered or received under the Leases, the Service Contracts, the Construction Contracts or any other agreement affecting the Property.
9.3.10 Warranties. Seller shall use commercially reasonable efforts to have all warranties related to the Property assigned or re-issued to Purchaser at Closing at Seller’s sole cost and expense.  In the event Seller is unable to assign such warranties to Purchaser as of the Closing, Seller shall continue to reasonably cooperate with Purchaser to get such warranties assigned or re-issued to Purchaser, and Seller shall take all reasonable action, as directed by Purchaser, in connection with the enforcement of such warranties.
9.3.11 Taxes, Charges, etc. Continue to pay or cause to be paid all Taxes in respect of the Property, and water and sewer charges in respect of the Property, as they become due in the ordinary course of business and Seller shall continue to file all tax returns related to the Property as required by law and in accordance with past practice.
9.3.12 Tax Reduction Proceedings. Keep Purchaser reasonably informed of the status of any tax reductions proceedings that Seller is prosecuting.
If Seller fails to perform any of the covenants contained in this Section 9.3 hereof, Purchaser shall have the rights and remedies available to Purchaser under Section 7.1 hereof, and if Purchaser elects to close with knowledge of such default and Purchaser had a right to terminate this Agreement, then such default by Seller shall be deemed to be waived by Purchaser at the Closing.
9.4 Purchaser’s Representations and Warranties.  Subject to Section 9.5 below, Purchaser represents and warrants that:
9.4.1 ERISA.  Purchaser is not, and the assets it shall use to acquire the Property do not constitute the assets of, a “benefit plan investor” within the meaning of 29 C.F.R. §2510.3-101, as modified by Section 3(42) of ERISA, and Purchaser is not a “governmental plan” within the meaning of Section 3(32) of ERISA, and the execution of the Agreement and the purchase of the Property by Purchaser are not subject to state statutes applicable to Purchaser regulating investments of and fiduciary obligation with respect to “government plans”.
9.4.2 Organization and Authority.  Purchaser is duly organized and in good standing under the laws of the state of its organization.  Purchaser has the power and 
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authority under its organizational documents to perform its obligations hereunder, and all action and approvals required thereunder have been duly taken and obtained.
9.4.3 No Conflict.  The execution and delivery of this Agreement, the consummation of the transactions provided for herein and the fulfillment of the terms hereof will not result in a breach of any of the terms or provisions of, or constitute a default under, any provision of Purchaser’s organizational documents.
9.4.4 No Bankruptcy.  Purchaser has not (a) made a general assignment for the benefit of creditors, (b) filed any voluntary petition in bankruptcy or suffered the filing of any involuntary petition by Purchaser’s creditors, (c) suffered the appointment of a receiver to take possession of all, or substantially all, of Purchaser’s assets, (d) suffered the attachment or other judicial seizure of all, or substantially all, of Purchaser’s assets, (e) admitted in writing its inability to pay its debts as they come due, or (f) made an offer of settlement, extension or composition to its creditors generally.
9.4.5 FCPA.  Neither Purchaser nor any of its directors, officers, agents, employees or other persons associated with or acting on behalf of Purchaser (i) has violated or is in violation of any provision of any applicable law or regulation implementing the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions or any applicable provision of the U.S. Foreign Corrupt Practices Act of 1977, as amended, the U.K. Bribery Act 2010, or any other applicable law concerning bribery or anti-corruption, including, in each case, the rules and regulations thereunder, (ii) has taken, is currently taking or will take any action in furtherance of an offer, payment, gift or anything else of value, directly or indirectly, to any person while knowing that all or some portion of the money or value will be offered, given or promised to anyone to improperly influence official action, to obtain or retain business or otherwise to secure any improper advantage or (iii) has otherwise made any bribe, influence payment, unlawful kickback or other unlawful payment.
9.4.6 Executive Order.
(a)Purchaser hereby represents and warrants that Purchaser is in compliance with the requirements of Executive Order No. 13224, 66 Fed. Reg. 49079 (Sept. 23, 2001) (the “Order”) and other similar requirements contained in the rules and regulations of the Office of Foreign Assets Control, Department of the Treasury (“OFAC”) and in any enabling legislation or other Executive Orders or regulations in respect thereof (the Order and such other statutes, regulations, legislation, or executive orders are collectively called the “Orders”).  Further, Purchaser covenants and agrees to make its policies, procedures and practices regarding compliance with the Orders, if any, available to Seller for its review and inspection prior to Closing during normal business hours and upon reasonable prior notice.
(b)Purchaser hereby represents and warrants that Purchaser:
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(i)    is not listed on the Specially Designated Nationals and Blocked Persons List maintained by OFAC pursuant to the Order and/or on any similar list of prohibited parties maintained pursuant to any of the rules and regulations of OFAC or pursuant to any other applicable Orders (such lists are collectively referred to as the “Lists”), and is not otherwise targeted by economic sanctions administered and enforced by OFAC;
(ii)    is not a person who has been determined by competent authority to be subject to the prohibitions contained in the Orders;
(iii)    is not owned or controlled by, or acts for or on behalf of, any person on the Lists or any other person who has been determined by competent authority to be subject to the prohibitions contained in the Orders; or
(iv)    is not in violation of any applicable anti-money laundering, anti-corruption or anti-bribery laws, rules, regulations or orders, and has policies and procedures that are reasonably designed to ensure such compliance.
(c)Purchaser hereby covenants and agrees that if, prior to Closing, Purchaser obtains knowledge that Purchaser becomes listed on the Lists or is indicted, arraigned, or custodially detained on charges involving money laundering or predicate crimes to money laundering, Purchaser shall immediately notify Seller in writing, and in such event, Seller shall have the right to terminate this Agreement without penalty or liability to Purchaser immediately upon delivery of written notice thereof to Purchaser.  In such event, Seller shall return and/or cause to be returned to Purchaser the Earnest Money, at which time this Agreement shall, without further action of the parties, terminate and become null and void and neither party shall have any further rights or obligations under this Agreement, except for those which expressly survive termination of this Agreement.
9.5 Survival.  Purchaser’s right to make a claim after Closing with respect to any breach of a representation or warranty set forth in Section 9.1 or covenant under Section 9.3 shall survive the Closing, but only as to claims of which Purchaser notifies Seller in writing within nine (9)  months after Closing  unless a longer or shorter survival period is expressly provided for in this agreement (such period, the “Survival Period”), and not otherwise, and provided that any suit must be brought within thirty (30) days after the expiration of the Survival Period.  Seller’s right to make a claim after Closing with respect to a breach of a representation or warranty set forth in Section 9.4 shall survive the Closing, provided Subsections 9.4.2 and 9.4.3 shall only survive the Closing as to claims of which Seller notifies Purchaser in writing prior to the expiration of the Survival Period, and provided that any suit must be brought within thirty (30) days after the expiration of the Survival Period.
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9.6 Employee Lists.  Seller has previously provided to Purchaser a written list of those employees serving the Property (the “Existing Employees”).  On or before March 3, 2020, Purchaser agrees to provide to Seller the names of employees from the Employee List to whom Purchaser or its manager will make offers of employment upon Closing.
9.7 Utility Agreements. Seller is a party to each of the utility service agreements listed on Exhibit O of the Company Disclosure Letter (the “Utility Agreements”).  Seller agrees to assign and Purchaser agrees to assume each of the Utility Agreements promptly upon receipt of any necessary consents of the applicable service provider required thereunder on such forms as may be reasonably required by the applicable service provider.  Seller and Purchaser agree to execute such documents as may be reasonably requested by the applicable service provider in connection therewith, including, without limitation, execution of a replacement service agreement upon substantially the same material terms and conditions as provided in the Utility Agreements, in lieu of any assignment of the existing Utility Agreement.  Promptly after the Closing, Seller shall request and use commercially reasonable efforts to obtain the applicable service provider’s consent to the assignment of the Utility Agreements to Purchaser as contemplated by the terms hereof.  Purchaser and Seller agree to provide such information as is reasonably requested by the applicable service providers and to reasonably cooperate with the other party in connection with obtaining such consents.  From and after the Closing through the date of assignment (or replacement, if applicable) of the applicable Utility Agreements, Seller and Purchaser agree not to cause or permit any of the Utility Agreements to be terminated and Purchaser shall be responsible for all costs, charges and obligations arising under the Utility Agreements first arising from and after the Closing.  Purchaser shall promptly pay all invoices relating to the period from and after the Closing issued by the applicable service provider directly to such service provider or, if directed by Seller, to Seller to reimburse Seller for amounts paid or to be paid by Seller under the Utility Agreements, prior to same becoming delinquent.  The fees imposed by the applicable service provider in connection with such consents and assignments shall be split equally between Seller and Purchaser, provided that each party shall bear its own costs and expenses incurred in connection therewith.
10.LIMITATION OF LIABILITY.  Notwithstanding anything to the contrary contained herein, if the Closing shall have occurred (and Purchaser shall not have waived, relinquished or released any applicable rights in further limitation), then (a) the aggregate liability of Seller arising pursuant to or in connection with the representations, warranties, indemnifications, covenants or other obligations (whether express or implied) of Seller under this Agreement (or any document executed or delivered in connection herewith) shall not exceed Eight Million Dollars ($8,000,000.00) in the aggregate (the “Liability Limitation”); and (b) no claim by Purchaser alleging a breach by Seller of any representation, warranty, indemnification, covenant or other obligation of Seller contained herein (or in any document executed or delivered by Seller to Purchaser in connection herewith) may be made, and Seller shall not be liable for any judgment in any action based upon any such claim, unless and until such claim, either alone or together with any other claims by Purchaser against Seller alleging a breach by Seller of any representation, warranty, indemnification, covenant or other obligation of Seller contained herein (or in any document executed or delivered in connection herewith), is for an aggregate amount in excess of Two Hundred Thousand Dollars ($200,000) (the “Floor Amount”), in which event Seller’s liability respecting any 
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final judgment concerning such claim or claims shall be for the entire amount thereof, subject to the limitation set forth in clause (a) above; provided, however, that (w) Seller’s obligation under Section 4.6 with respect to transaction costs, (x) Seller’s obligation under Section 4.3 with respect to prorations and adjustments and (y) Seller’s obligations under Section 6 with respect to brokerage fees shall not be subject to the Floor Amount or the Liability Limitation.  No constituent partner or member in or agent of Seller, nor any advisor, trustee, director, officer, member, partner, employee, beneficiary, shareholder, participant, representative or agent of any entity that is or becomes a constituent partner or member in Seller or an agent of Seller (including, but not limited to, Equity Commonwealth, a Maryland real estate investment trust (the “Trust”), and EQC Management) (collectively, “Seller’s Affiliates”)) shall have any personal liability, directly or indirectly, under or in connection with this Agreement or any agreement made or entered into under or pursuant to the provisions of this Agreement, or any amendment or amendments to any of the foregoing made at any time or times, heretofore or hereafter.  Notwithstanding anything to the contrary contained in this Agreement, neither the negative capital account of any constituent partner or member in Seller, nor any obligation of any constituent partner or member in any entity owning an interest (directly or indirectly) in Seller to restore a negative capital account or to contribute capital to Seller (or any entity owning an interest, directly or indirectly, in any other constituent partner or member of Seller), shall at any time be deemed to be the property or an asset of Seller or any such other partner or member (and neither Purchaser nor any of its successors or assigns shall have any right to collect, enforce or proceed against or with respect to any such negative capital account of such party’s obligations to restore or contribute).  The provisions of this Section 10 shall survive the Closing and any termination of this Agreement.
11.OMITTED.
12.MISCELLANEOUS.
12.1 Entire Agreement.  All understandings and agreements heretofore had between Seller and Purchaser with respect to the Property are merged in this Agreement (which shall be deemed to include any Exhibits hereto and the Company Disclosure Letter), which alone fully and completely expresses the agreement of the parties.
12.2 Assignment.  Except as provided in Section 12.12 below, neither this Agreement nor any interest hereunder shall be assigned or transferred by Purchaser without Seller’s written consent; provided, however, that no such consent shall be required with respect to Purchaser’s assignment to an entity that (a) (i) is wholly owned, directly or indirectly, by Purchaser or (ii) an affiliate of Purchaser (which shall be deemed to include any affiliate of Kohlberg Kravis Roberts & Co.), and (b) delivers, on or before the date that is five (5) Business Days before the Closing Date, to Seller a duly executed assumption of all of the duties and obligations of Purchaser by the proposed assignee (including an express statement of the representation and warranty in Section 9.4.5 above); and provided further that upon any such assignment permitted hereunder, the Purchaser named herein shall remain liable to Seller for the performance of the obligations of “Purchaser” hereunder.  Seller may assign or otherwise transfer its interest under this Agreement, convert to a different form of legal entity in accordance with law and/or change its name.  As used in this Agreement, the term “Seller” shall be deemed to include any assignee or other transferee of any Seller.  Upon any such transfer by a Seller, such Seller shall be relieved of any subsequently accruing 
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liability under this Agreement.  Subject to the foregoing, this Agreement shall inure to the benefit of and shall be binding upon Seller and Purchaser and their respective successors and assigns.
12.3 Modifications.  This Agreement shall not be modified or amended except in a written document signed by Seller and Purchaser.
12.4 Time of Essence.  Time is of the essence of this Agreement.  In the computation of any period of time provided for in this Agreement or by law, the day of the act or event from which the period of time runs shall be excluded, and the last day of such period shall be included unless it is not a Business Day, in which event the period shall be deemed to run until the next Business Day.  For purposes hereof, “Business Day” shall mean any day which is not a Saturday, Sunday or federal holiday.
12.5 Governing Law.  This Agreement shall be governed and interpreted in accordance with the laws of the state in which the Property is located.
12.6 Notices.  All notices, requests, demands or other communications required or permitted under this Agreement shall be in writing and delivered personally or by email transmission with confirmed receipt (which may be in the form of an automated electronic response), or by overnight courier (such as Federal Express), addressed as reflected in the Company Disclosure Letter.  All notices given in accordance with the terms hereof shall be deemed given when received (on the day delivered if delivered before 5:00 p.m. Chicago time and the next Business Day if delivered after such time) or upon the first attempted delivery on a Business Day.  Either party hereto may change the address for receiving notices, requests, demands or other communication by notice sent in accordance with the terms of this Section 12.6.
12.7 “AS IS” SALE.  ACKNOWLEDGING THE PRIOR USE OF THE PROPERTY AND PURCHASER’S PRIOR OPPORTUNITY TO INSPECT THE PROPERTY, PURCHASER AGREES, SUBJECT TO THE REPRESENTATIONS AND WARRANTIES SET FORTH IN SECTION 9.1 ABOVE, IN THE COMPANY DISCLOSURE LETTER OR EXPRESSLY SET FORTH IN THE TRANSFER DOCUMENTS, TO TAKE THE PROPERTY “AS-IS,” “WHERE-IS,” AND WITH ALL FAULTS AND CONDITIONS THEREON. ANY INFORMATION, REPORTS, STATEMENTS, DOCUMENTS OR RECORDS (COLLECTIVELY, THE “DISCLOSURES”) PROVIDED OR MADE TO PURCHASER OR ITS CONSTITUENTS BY SELLER OR ANY OF SELLER’S AFFILIATES SHALL NOT BE REPRESENTATIONS OR WARRANTIES.  PURCHASER HAS NOT AND SHALL NOT RELY ON SUCH DISCLOSURES, BUT RATHER, PURCHASER SHALL RELY ONLY ON ITS OWN INSPECTION OF THE PROPERTY.  PURCHASER ACKNOWLEDGES THAT THE PURCHASE PRICE REFLECTS AND TAKES INTO ACCOUNT THAT THE PROPERTY IS BEING SOLD “AS IS”.  PURCHASER ACKNOWLEDGES AND AGREES THAT, SUBJECT TO THE REPRESENTATIONS AND WARRANTIES SET FORTH IN SECTION 9.1 ABOVE, IN THE COMPANY DISCLOSURE LETTER OR EXPRESSLY SET FORTH IN THE TRANSFER DOCUMENTS, SELLER HAS NOT MADE, DOES NOT MAKE 
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AND SPECIFICALLY DISCLAIMS ANY REPRESENTATIONS, WARRANTIES, PROMISES, COVENANTS, AGREEMENTS OR GUARANTIES OF ANY KIND OR CHARACTER WHATSOEVER, WHETHER EXPRESS OR IMPLIED, ORAL OR WRITTEN, PAST, PRESENT OR FUTURE, OF, AS TO, CONCERNING OR WITH RESPECT TO (A) THE NATURE, QUALITY OR CONDITION OF THE PROPERTY, INCLUDING, WITHOUT LIMITATION, THE WATER, SOIL AND GEOLOGY; (B) THE INCOME TO BE DERIVED FROM THE PROPERTY, (C) THE SUITABILITY OF THE PROPERTY FOR ANY AND ALL ACTIVITIES AND USES WHICH PURCHASER MAY CONDUCT THEREON, (D) THE COMPLIANCE OF OR BY THE PROPERTY OR ITS OPERATION WITH ANY LAWS, RULES, ORDINANCES OR REGULATIONS OF ANY APPLICABLE GOVERNMENTAL AUTHORITY OR BODY; (E) THE HABITABILITY, MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OF THE PROPERTY; OR (F) ANY OTHER MATTER WITH RESPECT TO THE PROPERTY, AND SPECIFICALLY DISCLAIMS ANY REPRESENTATIONS REGARDING TERMITES OR WASTES, AS DEFINED BY THE U.S. ENVIRONMENTAL PROTECTION AGENCY REGULATIONS AT 40 C.F.R., OR ANY HAZARDOUS SUBSTANCE, AS DEFINED BELOW.  PURCHASER FURTHER ACKNOWLEDGES AND AGREES THAT SELLER, UNLESS OTHERWISE REQUIRED BY LAW OR AS EXPRESSLY SET FORTH IN THIS AGREEMENT, THE COMPANY DISCLOSURE LETTER OR THE TRANSFER DOCUMENTS, IS UNDER NO DUTY TO MAKE ANY AFFIRMATIVE DISCLOSURES REGARDING ANY MATTER WHICH MAY BE KNOWN TO SELLER.  PURCHASER ACKNOWLEDGES THAT THE TERMS OF THAT CERTAIN TRANSPORTATION MANAGEMENT PROGRAM AGREEMENT DATED ON OR ABOUT MARCH 10, 2008 (AS AMENDED OR MODIFIED, THE “TMP”), SUBMITTED BY SELLER'S PREDECESSOR IN TITLE AND APPROVED BY THE CITY OF BELLEVUE ON MARCH 24, 2008, APPLY TO THE PROPERTY, AND PURCHASER AGREES TO ASSUME ANY AND ALL OBLIGATIONS OF "OWNER" UNDER THE TMP FROM AND AFTER THE CLOSING DATE.
PURCHASER REPRESENTS TO SELLER THAT PURCHASER HAS CONDUCTED, OR WILL CONDUCT PRIOR TO CLOSING, SUCH INVESTIGATIONS OF THE PROPERTY, INCLUDING, BUT NOT LIMITED TO, THE PHYSICAL AND ENVIRONMENTAL CONDITIONS THEREOF, AS PURCHASER DEEMS NECESSARY OR DESIRABLE TO SATISFY ITSELF AS TO ANY MATTER RELATING TO THE PROPERTY INCLUDING BUT NOT LIMITED TO THE CONDITION OF THE PROPERTY AND THE EXISTENCE OR NONEXISTENCE OR CURATIVE ACTION TO BE TAKEN WITH RESPECT TO ANY HAZARDOUS OR TOXIC SUBSTANCES ON OR DISCHARGED FROM THE PROPERTY, AND WILL RELY SOLELY UPON SAME AND NOT UPON ANY INFORMATION PROVIDED BY OR ON BEHALF OF SELLER OR ITS AGENTS OR EMPLOYEES WITH RESPECT THERETO OTHER THAN THE REPRESENTATIONS, WARRANTIES AND COVENANTS EXPRESSLY SET FORTH IN THIS AGREEMENT, THE COMPANY DISCLOSURE LETTER OR THE TRANSFER DOCUMENTS.  UPON CLOSING, PURCHASER SHALL 
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ASSUME THE RISK THAT ADVERSE MATTERS, INCLUDING BUT NOT LIMITED TO, CONSTRUCTION DEFECTS AND ADVERSE PHYSICAL AND ENVIRONMENTAL CONDITIONS, MAY NOT HAVE BEEN REVEALED BY PURCHASER’S INVESTIGATIONS, EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, THE COMPANY DISCLOSURE LETTER OR THE TRANSFER DOCUMENTS.
EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, THE COMPANY DISCLOSURE LETTER OR THE TRANSFER DOCUMENTS, PURCHASER, UPON CLOSING, SHALL BE DEEMED ON BEHALF OF ITSELF AND ITS AFFILIATES, SUCCESSORS AND ASSIGNS TO HAVE WAIVED, RELINQUISHED AND RELEASED SELLER (AND SELLER’S AFFILIATES) FROM AND AGAINST ANY AND ALL CLAIMS, DEMANDS, CAUSES OF ACTION (INCLUDING CAUSES OF ACTION IN TORT, COST RECOVERY, CONTRIBUTION OR OTHERWISE), LOSSES, DAMAGES, LIABILITIES, COSTS AND EXPENSES (INCLUDING ATTORNEYS’ FEES) OF ANY AND EVERY KIND OR CHARACTER, KNOWN OR UNKNOWN, WHICH SUCH PARTIES MIGHT HAVE ASSERTED OR ALLEGED AGAINST SELLER (AND SELLER’S AFFILIATES) AT ANY TIME BY REASON OF OR ARISING OUT OF ANY LATENT OR PATENT CONSTRUCTION DEFECTS OR PHYSICAL CONDITIONS (INCLUDING, WITHOUT LIMITATION, FUNGI, MOLD OR MILDEW), VIOLATIONS OF ANY APPLICABLE LAWS AND ANY AND ALL OTHER ACTS, OMISSIONS, EVENTS, CIRCUMSTANCES OR MATTERS REGARDING THE PROPERTY INCLUDING, WITHOUT LIMITATION, PURSUANT TO THE STATUES IN EFFECT IN THE STATE IN WHICH THE PROPERTY IS LOCATED OR ANY OTHER FEDERAL, STATE, OR LOCAL ENVIRONMENTAL OR HEALTH AND SAFETY LAW OR REGULATION, THE EXISTENCE OF ANY HAZARDOUS MATERIAL OR CHEMICAL WHATSOEVER, ON, AT, TO, IN, ABOVE, ABOUT, UNDER, FROM OR IN THE VICINITY OF THE PROPERTY AND ANY AND ALL OTHER ACTS, OMISSIONS, EVENTS, CIRCUMSTANCES OR MATTERS WHATSOEVER REGARDING THE PROPERTY.  THIS RELEASE INCLUDES CLAIMS OF WHICH PURCHASER IS PRESENTLY UNAWARE AND OF WHICH PURCHASER DOES NOT PRESENTLY SUSPECT TO EXIST WHICH, IF KNOWN BY PURCHASER, WOULD MATERIALLY AFFECT PURCHASER’S RELEASE OF SELLER. 
TO THE EXTENT PERMITTED BY LAW, PURCHASER HEREBY AGREES, REPRESENTS AND WARRANTS THAT PURCHASER REALIZES AND ACKNOWLEDGES THAT FACTUAL MATTERS NOW UNKNOWN TO PURCHASER MAY HAVE GIVEN OR MAY HEREAFTER GIVE RISE TO CAUSES OF ACTION, CLAIMS, DEMANDS, DEBTS, CONTROVERSIES, DAMAGES, COSTS, LOSSES AND EXPENSES WHICH ARE PRESENTLY UNKNOWN, UNANTICIPATED AND UNSUSPECTED, AND PURCHASER FURTHER AGREES, REPRESENTS AND WARRANTS THAT THE WAIVERS AND RELEASES CONTAINED HEREIN HAVE BEEN NEGOTIATED AND AGREED UPON BY PURCHASER IN LIGHT OF THAT REALIZATION AND 
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THAT PURCHASER NEVERTHELESS HEREBY INTENDS TO RELEASE, DISCHARGE AND ACQUIT SELLER AND SELLER’S AFFILIATES FROM ANY SUCH UNKNOWN CAUSES OF ACTION, CLAIMS, DEMANDS, DEBTS, CONTROVERSIES, DAMAGES, COSTS, LOSSES AND EXPENSES; PROVIDED HOWEVER THAT IN NO EVENT SHALL SELLER BE RELEASED FROM ANY CLAIMS ARISING PURSUANT TO THE PROVISIONS OF THIS AGREEMENT, THE COMPANY DISCLOSURE LETTER OR SELLER’S OBLIGATIONS, IF ANY, UNDER THE TRANSFER DOCUMENTS.
“Hazardous Materials” or “Hazardous Substances” - shall mean (i) hazardous wastes, hazardous materials, hazardous substances, hazardous constituents, toxic substances or related materials, whether solids, liquids or gases, including, but not limited to, substances defined as “hazardous wastes,” “hazardous materials,” “hazardous substances,” “toxic substances,” “pollutants,” “contaminants,” “radioactive materials”, “toxic pollutants”, or other similar designations in, or otherwise subject to regulation under, the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended (“CERCLA”), 42 U.S.C. § 9601 et seq.; the Toxic Substance Control Act (“TSCA”), 15 U.S.C. § 2601 et seq.; the Hazardous Materials Transportation Act, 49 U.S.C. §5101 et seq.; the Resource Conservation and Recovery Act (“RCRA”), 42 U.S.C. § 6901, et seq.; the Clean Water Act (“CWA”), 33 U.S.C. § 1251 et seq.; the Safe Drinking Water Act, 42 U.S.C. § 300f et seq.; the Clean Air Act (“CAA”), 42 U.S.C. § 7401 et seq.; and in any permits, licenses, approvals, plans, rules, regulations or ordinances adopted, or other criteria and guidelines promulgated pursuant to the preceding laws or other similar federal, state or local laws, regulations, rules or ordinance now or hereafter in effect relating to environmental matters; and (ii) any other substances, constituents or wastes subject to any applicable federal, state or local law, regulation or ordinance, including any environmental law, now or hereafter in effect, including but not limited to (A) petroleum, (B) refined petroleum products, (C) waste oil, (D) waste aviation or motor vehicle fuel and their byproducts, (E) asbestos, (F) lead in water, paint or elsewhere, (G) radon, (H) Polychlorinated Biphenyls (PCB’s), (I) ureaformaldehyde, (J) volatile organic compounds (VOC), (K) total petroleum hydrocarbons (TPH), (L) benzine derivative (BTEX), and (M) petroleum byproducts.
The provisions of this Section 12.7 shall survive Closing or any termination of this Agreement.
12.8 TRIAL BY JURY; RESCISSION.  IN ANY LAWSUIT OR OTHER PROCEEDING INITIATED BY EITHER PARTY UNDER OR WITH RESPECT TO THIS AGREEMENT, EACH OF SELLER AND PURCHASER WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY.  ALSO, PURCHASER WAIVES ANY RIGHT TO SEEK RESCISSION OF THE TRANSACTION PROVIDED FOR IN THIS AGREEMENT.
12.9 Confidentiality.  (a)  Except as may be required by law, without the prior written consent of the other party, neither Seller nor Purchaser shall disclose to any third party other than such party’s respective affiliates, and its and their members, managers, partners, sub-funds, alternative investment funds, financing sources, co-investors, representatives, consultants, lenders, officers, directors, employees, advisors (including, 
        28

without limitation, accountants and legal counsel), agents and representatives (collectively, “Representatives”), who have been advised and instructed to keep such information confidential, (i) prior to the Closing, the existence of this Agreement or (ii) any term or condition thereof or make any public pronouncements, issue any press releases or otherwise furnish any information regarding this Agreement, or the transactions contemplated hereby to any third party and Purchaser shall not disclose to any third party the results of any inspections or studies undertaken in connection herewith; provided, however, that the foregoing shall not be construed to prevent (i) either party from making (without the consent of, but upon notice to, the other party) any disclosure required by any applicable law or regulation or judicial process, (ii) Seller or Buyer from filing this entire Agreement and/or disclosing the existence and terms of this Agreement pursuant to SEC regulations or the earnings calls of the Trust or any indirect investor or parent of Buyer or (iii) Seller or Buyer from issuing any press releases permitted under Section 12.13 below.  The foregoing shall not apply to any information that (i) is, or becomes, in the public domain (other than by reason of a breach by Purchaser of its confidentiality obligations hereunder or any other confidentiality agreement by and between Purchaser and Seller related to the Property, by reason of any release of such information by Purchaser or any Purchaser’s Representative, or by reason of a breach by a third party of a confidentiality agreement with Seller (only to the extent Purchaser is aware of such confidentiality agreement)), (ii) is, or becomes, available to Purchaser from any other public source (other than by reason of a breach by Purchaser of its confidentiality obligations hereunder or any other confidentiality agreement by and between Purchaser and Seller related to the Property, by reason of any release of such information by any Purchaser’s Representative, or by reason of a breach by a third party of a confidentiality agreement with Seller (only to the extent Purchaser is aware of such confidentiality agreement)).
(b) Purchaser shall comply with the terms of that certain Principal Confidentiality Agreement, dated as of November 20, 2019, executed by Purchaser’s affiliate (the “Confidentiality Agreement”), and, to the extent there is an express conflict between any term of this Agreement and the terms of the Confidentiality Agreement, the foregoing shall control, and provided further that for the avoidance of doubt, any provision of the Confidentiality Agreement regarding Seller’s right to terminate and exclusivity with respect to the transaction shall be of no further force and effect.
12.10 Intentionally Omitted.
12.11 Reporting Person.  Seller and Purchaser hereby designate Escrow Agent to act as and perform the duties and obligations of the “reporting person” with respect to the transaction contemplated by this Agreement for purposes of 26 C.F.R. Section 1.60454(e)(5) relating to the requirements for information reporting on real estate transactions.  In this regard, Seller and Purchaser each agree to execute at Closing, and to cause Escrow Agent to execute at Closing, a Designation Agreement, designating Escrow Agent as the reporting person with respect to the transaction contemplated by this Agreement.
12.12 Section 1031 Exchange.  Either party may structure the disposition or acquisition of the Property, as the case may be, as a like-kind exchange under Section 1031 of the Code (a “Like-Kind Exchange”) at the exchanging party’s sole cost and expense.  The 
        29

other party shall reasonably cooperate therein, provided that (i) such other party shall incur no material costs, expenses or liabilities in connection with the exchanging party’s exchange, (ii) the consummation of this Agreement is not predicated or conditioned on any Like-Kind Exchange by either party, (iii) the Closing shall not be delayed or affected by reason of any Like-Kind Exchange and (iv) the non-exchanging party shall not be obligated to take title to any property other than the Property.  If either party uses a qualified intermediary to effectuate an exchange, any assignment of the rights or obligations of such party hereunder shall not relieve, release or absolve such party of its obligations to the other party.  The exchanging party shall indemnify, defend and hold harmless the other party from all liability in connection with the indemnifying party’s exchange, and the indemnified party shall not be required to take title to or contract for the purchase of any other property.  The provisions of this Section 12.12 shall survive the Closing.
12.13 Press Releases.  Notwithstanding anything to the contrary contained herein, after the execution of this Agreement, Seller may issue a press release substantially in the form attached hereto as Exhibit 12.13 but without reference to the name of the Purchaser.  In addition, notwithstanding anything to the contrary contained herein, (A) upon or after the Closing, Seller or Purchaser may issue a press release disclosing the sale of the Property, a description of the Property and the Purchase Price, but otherwise, the parties hereto shall not issue any press releases with respect to the transactions contemplated hereby (including any press release naming the identity of the Purchaser) or consummated in accordance with the terms hereof except upon the mutual agreement of the parties as to the form and content of such press release (with consent not to be unreasonably withheld, conditioned, or delayed by either party); and (B) Seller and Purchaser shall be permitted to make disclosures (i) required by the disclosure requirements applicable to the Trust, which is an indirect parent of Seller, or its affiliates or applicable to Seller or its affiliates, due to the Trust’s status as a publicly-held company listed on the New York Stock Exchange or any other securities exchange (an “Exchange”) (including, but not limited to, disclosure in accordance with, or required by, the rules of, or any listing agreement with, an Exchange) or (ii) to the extent such information was previously disclosed or is required to be disclosed pursuant to SEC regulations.
12.14 Counterparts.  This Agreement may be executed in any number of identical counterparts, any or all of which may contain the signatures of less than all of the parties, and all of which shall be construed together as but a single instrument.  Each counterpart may be delivered by electronic mail or facsimile transmission.
12.15 Construction.  This Agreement shall not be construed more strictly against Seller merely by virtue of the fact that the same has been prepared by Seller or its counsel, it being recognized both of the parties hereto have contributed substantially and materially to the preparation of this Agreement.
12.16 Attorneys’ Fees.  In the event of litigation between the parties with respect to this Agreement or the transaction contemplated hereby, the prevailing party therein shall be entitled to recover from the losing party all of its costs of enforcement and litigation, including, but not limited to, its reasonable attorneys’ and paralegal fees, witness fees, court reporters’ fees and other costs of suit.
        30

12.17 No Memorandum of Agreement.  This Agreement or any notice or memorandum hereof shall not be recorded in any public record.  A violation of this prohibition shall constitute a default by Purchaser.
12.18 Severability.  If any portion of this Agreement becomes or is held to be illegal, null or void or against public policy, for any reason, the remaining portions of this Agreement will not be affected thereby and will remain in force and effect to the fullest extent permissible by law.
[signature page follows next]

        31

IN WITNESS WHEREOF, the parties have caused this Agreement to be signed by their duly authorized representatives as of the date first above written.

						
	SELLER:
	EQC OPERATING TRUST, 
a Maryland real estate investment trust

By: /s/ David S. Weinberg     
Name: David S. Weinberg     
Title: EVP & Chief Operating Officer

	PURCHASER:
	BELLEVUE 108 AVENUE OWNER LLC, a Delaware limited liability company

By: /s/ Michael Whyte                  
Name: Michael Whyte                       
Title: Vice President                        

        32

SCHEDULE A
DEFINED TERMS
“Asset-Related Property” shall mean (a) to the extent they may be transferred under Applicable Law without cost or consent of a third party, all licenses, permits and authorizations presently or hereafter issued to or for the benefit of Seller in connection with the operation or development of all or any part of the Property as it is presently being operated; (b) to the extent assignable under Applicable Law without cost or consent of a third party, all warranties and guaranties, if any, issued or assigned to Seller or any Affiliate of Seller or the Property Manager from any manufacturer, contractor, engineer or architect in connection with construction of any improvements or installation of equipment or any component of the improvements included as part of the Property; (c) the plans and specifications, engineering drawings and prints with respect to the improvements, all operating manuals, and all books, data and records regarding the physical components systems of the improvements at the Property, each to the extent in Seller’s possession (or reasonably obtainable by Seller); (d) all books and records, tenant files, tenant lists, tenant information and marketing information relating to the Property, each to the extent in Seller’s possession (or reasonably obtainable by Seller); and (e) to the extent assignable under Applicable Law without cost or consent of a third party, all other intangibles associated with the Property, including, without limitation, any websites, designs, trade names, building names, trademarks, copyrights and other intellectual property used exclusively with respect to the Property; but excluding any property rights specifically excluded under Section 1 of the Agreement.
“Monetary Encumbrance” shall mean any construction or mechanics liens or notices of commencement related to work contracted by Seller (but for avoidance of doubt, not any tenant unless a lien is recorded) or other monetary liens encumbering the Property that may be removed by the payment of an ascertainable liquidated sum of money.
“Monetary Encumbrance Cap” shall mean $1,000,000.
“Post-Effective Date Voluntary Encumbrance” shall mean any title exceptions affecting the property that are created by Seller on or after the Effective Date in violation of this Agreement.
“Required Removal Item” shall mean (i) any lien of any mortgage, deed of trust or other security instrument affecting such Property created or assumed by Seller; (ii) any Post-Effective Date Voluntary Encumbrance and (iii) any Monetary Encumbrance.

        33

LIST OF EXHIBITS
A Legal Description
F Form of Deed
G Bill of Sale and General Assignment
H Notice to Tenants
I Notice to Vendors
J Non-Foreign Affidavit
12.13 Sample Press Release

        34

EXHIBIT A
LEGAL DESCRIPTION
[333 108th Avenue N.E., Bellevue, Washington]
REAL PROPERTY LOCATED IN THE COUNTY OF KING, STATE OF WASHINGTON, DESCRIBED AS FOLLOWS:
THAT PORTION OF THE EAST 1/2 OF LOT 2 IN BLOCK 3 OF CHERITON FRUIT GARDENS PLAT NO. 1, AS PER PLAT RECORDED IN VOLUME 7 OF PLATS, PAGE 47, RECORDS OF KING COUNTY, DESCRIBED AS FOLLOWS:
BEGINNING ON THE WEST LINE OF THE COUNTY ROAD RIGHT-OF-WAY AT A POINT WHICH IS SOUTH 89°29'48" WEST 30 FEET FROM THE SOUTHEAST CORNER OF SAID LOT 2; THENCE NORTH 01°51'00" WEST 589.73 FEET TO THE TRUE POINT OF BEGINNING; THENCE NORTH 01°51'00" WEST 65 FEET TO THE SOUTH LINE OF CHERRY AVENUE (NOW KNOWN AS NE 4TH STREET) RIGHT-OF-WAY;
THENCE ALONG SAID AVENUE, SOUTH 89°12'27" WEST 196.80 FEET;
THENCE SOUTH 01°53'32" EAST 65 FEET;
THENCE NORTH 89°12'27" EAST, PARALLEL WITH THE SOUTH LINE OF CHERRY AVENUE (NOW KNOWN AS NE 4TH STREET), 196.00 FEET, MORE OR LESS, TO THE TRUE POINT OF BEGINNING.
EXCEPT THE NORTH 13.5 FEET THEREOF AS DEEDED TO THE CITY OF BELLEVUE FOR STREET RECORDED UNDER KING COUNTY RECORDING NO. 4806122; AND EXCEPT THAT PORTION CONDEMNED IN KING COUNTY SUPERIOR COURT NO. 87-2-08388-8 FOR STREET PURPOSES:
AND EXCEPT THE WEST 60 FEET AS MEASURED ALONG THE NORTH LINE THEREOF; (ALSO KNOWN AS THE NORTH 65 FEET OF LOTS 9 AND 10 IN BOVEE'S REPLAT OF THE EAST 1/2 OF LOT 2 IN BLOCK 3 OF CHERITON FRUIT GARDENS PLAT NO. 1, AN UNRECORDED PLAT); TOGETHER WITH THAT PORTION OF THE EAST 1/2 OF LOT 2 IN BLOCK 3 OF CHERITON FRUIT GARDENS PLAT NO. 1, AS PER PLAT RECORDED IN VOLUME 7 OF PLATS, PAGE 47, RECORDS OF KING COUNTY, DESCRIBED AS FOLLOWS:
BEGINNING ON THE WEST LINE OF 108TH AVENUE NE RIGHT-OF-WAY AT A POINT WHICH IS NORTH 01°51'00" WEST 523.80 FEET FROM THE SOUTH LINE OF SAID LOT 2; THENCE CONTINUING NORTH 01°51'00" WEST, 65.93 FEET TO A POINT WHICH IS 65 FEET SOUTH OF THE SOUTH LINE OF CHERRY AVENUE;
THENCE SOUTH 89°12'27" WEST 196.80 FEET, PARALLEL WITH THE SOUTH LINE OF NE 4TH STREET
(FORMERLY CHERRY AVENUE);
THENCE SOUTH 01°51'00" WEST 65.74 FEET;
THENCE NORTH 89°15'58" EAST 196.72 FEET TO THE POINT OF BEGINNING;
EXCEPT THE WEST 60 FEET AS MEASURED ALONG THE NORTH LINE THEREOF;
(ALSO KNOWN AS A PORTION OF TRACTS 9 AND 10 OF BOVEE'S REPLAT OF THE EAST 1/2 OF LOT 2 IN BLOCK 3 OF CHERITON FRUIT GARDENS PLAT NO. 1, AN 
A-1
 

UNRECORDED PLAT); AND TOGETHER WITH THAT PORTION OF THE EAST 1/2 OF LOT 2 IN BLOCK 3 OF CHERITON FRUIT GARDENS PLAT NO. 1, AS PER PLAT RECORDED IN VOLUME 7 OF PLATS, PAGE 47, RECORDS OF KING COUNTY, DESCRIBED AS FOLLOWS:
BEGINNING AT THE NORTHEAST CORNER OF THE SOUTHEAST 1/4 OF THE NORTHWEST 1/4 OF SECTION 32 IN TOWNSHIP 25 NORTH OF RANGE 5 EAST W.M.;
THENCE SOUTH 01°51'00" EAST 16.5 FEET;
THENCE SOUTH 89°12'27" WEST 226.8 FEET;
THENCE SOUTH 01°53'32" EAST 130.74 FEET TO THE TRUE POINT OF BEGINNING OF THE TRACT HEREIN DESCRIBED;
THENCE NORTH 89°15'58" EAST 196.72 FEET;
THENCE SOUTH 01°51'00" EAST 65.475 FEET;
THENCE SOUTH 89°17'43" WEST TO A POINT WHICH BEARS SOUTH 01°53'32" EAST FROM THE TRUE POINT OF BEGINNING;
THENCE NORTH 01°53'32" WEST 65.375 FEET, MORE OR LESS, TO THE TRUE POINT OF BEGINNING;
EXCEPT THE WEST 60 FEET AS MEASURED ALONG THE NORTH LINE THEREOF;
(ALSO KNOWN AS A PORTION OF TRACT 8 OF BOVEE'S REPLAT OF THE EAST 1/2 OF LOT 2 IN BLOCK 3 OF CHERITON FRUIT GARDENS PLAT NO. 1, AN UNRECORDED PLAT); AND TOGETHER WITH THE WEST 60 FEET OF THE FOLLOWING DESCRIBED TRACT: THAT PORTION OF THE EAST 1/2 OF LOT 2 IN BLOCK 3 OF CHERITON FRUIT GARDENS PLAT NO. 1, AS PER PLAT RECORDED IN VOLUME 7 OF PLATS, PAGE 47, RECORDS OF KING COUNTY, DESCRIBED AS FOLLOWS:
BEGINNING AT THE NORTHEAST CORNER OF THE SOUTHEAST 1/4 OF THE NORTHWEST 1/4 OF SECTION 32 IN TOWNSHIP 25 NORTH OF RANGE 5 EAST W.M.;
THENCE SOUTH 01°51'00" EAST 16.5 FEET;
THENCE SOUTH 89°12'27" WEST 226.8 FEET TO THE TRUE POINT OF BEGINNING OF THE TRACT HEREIN DESCRIBED;
THENCE NORTH 89°12'27" EAST 196.80 FEET TO THE WEST LINE OF 108TH AVENUE NORTHEAST RIGHT-OF-WAY;
THENCE SOUTH 01°51'00" EAST, ALONG SAID WEST LINE, 196.405 FEET;
THENCE SOUTH 89°17'43" WEST TO A POINT WHICH BEARS SOUTH 01°53'32" EAST FROM THE TRUE POINT OF BEGINNING;
THENCE NORTH 01°53'32" WEST 196.115 FEET, MORE OR LESS, TO THE TRUE POINT OF BEGINNING;
EXCEPT THE NORTH 13.5 FEET THEREOF AS CONVEYED TO THE CITY OF BELLEVUE FOR STREET BY DEED RECORDED UNDER KING COUNTY RECORDING NO. 4806122; (ALSO KNOWN AS A PORTION OF LOTS 8, 9 AND 10 OF BOVEE'S REPLAT OF THE EAST 1/2 OF LOT 2 IN BLOCK 3 OF CHERITON FRUIT GARDENS PLAT NO. 1, AN UNRECORDED PLAT);
AND TOGETHER WITH THE WEST 65 FEET OF THE FOLLOWING DESCRIBED TRACT:
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THAT PORTION OF THE EAST 1/2 OF LOT 2 IN BLOCK 3 OF CHERITON FRUIT GARDENS PLAT NO. 1, AS PER PLAT RECORDED IN VOLUME 7 OF PLATS, PAGE 47, RECORDS OF KING COUNTY, DESCRIBED AS FOLLOWS:
BEGINNING ON THE WEST LINE OF COUNTY ROAD RIGHT-OF-WAY AT A POINT WHICH IS SOUTH 89°12'00" WEST 30 FEET AND SOUTH 01°51'00" EAST 196.427 FEET FROM THE NORTHEAST CORNER OF SAID LOT 2;
THENCE ALONG SAID ROAD LINE, SOUTH 01°51'00" EAST 65.477 FEET;
THENCE SOUTH 89°19'00" WEST 294.93 FEET TO THE WEST LINE OF THE EAST 1/2 OF SAID LOT 2;
THENCE ALONG SAID WEST LINE, NORTH 01°54'45" WEST 65.328 FEET;
THENCE NORTH 89°17'15" EAST 295 FEET TO THE POINT OF BEGINNING;
(ALSO KNOWN AS TRACT 7 OF BOVEE'S REPLAT OF THE EAST 1/2 OF LOT 2 IN BLOCK 3 OF CHERITON FRUIT GARDENS PLAT NO. 1, AN UNRECORDED PLAT);
EXCEPT THAT PORTION IF ANY LYING WEST OF A BOUNDARY AND PARTY WALL AGREEMENT LINE AS
ESTABLISHED BY INSTRUMENT RECORDED UNDER KING COUNTY RECORDING NO. 7106110101;
AND TOGETHER WITH THAT PORTION OF THE EAST 1/2 OF LOT 2 IN BLOCK 3 OF CHERITON FRUIT GARDENS PLAT NO. 1, AS PER PLAT RECORDED IN VOLUME 7 OF PLATS, PAGE 47, RECORDS OF KING COUNTY, DESCRIBED AS FOLLOWS:
BEGINNING AT THE NORTHEAST CORNER OF THE SOUTHEAST 1/4 OF THE NORTHWEST 1/4 OF SECTION 32 IN TOWNSHIP 25 NORTH OF RANGE 5 EAST W.M.;
THENCE SOUTH 01°51'00" EAST 16.5 FEET;
THENCE SOUTH 89°12'27" WEST 226.80 FEET TO THE TRUE POINT OF BEGINNING;
THENCE CONTINUING SOUTH 89°12'27" WEST 98.41 FEET;
THENCE SOUTH 01°54'48" EAST 195.971 FEET;
THENCE NORTH 89°17'34" EAST 96.345 FEET TO A POINT FROM WHICH THE TRUE POINT OF BEGINNING BEARS NORTH 01°53'32" WEST;
THENCE NORTH 01°53'32'' WEST 197.116 FEET TO THE TRUE POINT OF BEGINNING;
(ALSO KNOWN AS LOT 11 AND THE WEST 98.36 FEET OF LOT 8, MEASURED ALONG THE NORTH LINE OF SAID LOT 8 OF BOVEE'S REPLAT OF THE EAST 1/2 OF LOT 2 IN BLOCK 3 OF CHERITON FRUIT GARDENS PLAT NO. 1, AN UNRECORDED PLAT);
EXCEPT THE NORTH 13.5 FEET THEREOF AS DEEDED TO THE CITY OF BELLEVUE FOR STREET UNDER
RECORDING NO. 8211020392, BEING A CORRECTION OF INSTRUMENT RECORDED UNDER KING COUNTY RECORDING NO. 4699717;
AND EXCEPT THAT PORTION IF ANY LYING WEST OF A BOUNDARY AND PARTY WALL AGREEMENT LINE AS ESTABLISHED BY INSTRUMENT RECORDED UNDER KING COUNTY RECORDING NO. 7106110101;
AND TOGETHER WITH THAT PORTION OF THE WEST 1/2 OF LOT 2 IN BLOCK 3 OF CHERITON FRUIT GARDENS PLAT NO. 1, AS PER PLAT RECORDED IN VOLUME 7 OF PLATS, PAGE 47, RECORDS OF KING COUNTY, LYING EAST OF A BOUNDARY AND PARTY WALL AGREEMENT LINE AS ESTABLISHED BY INSTRUMENT RECORDED UNDER KING COUNTY RECORDING NO. 7106110101; SITUATE IN THE CITY OF BELLEVUE, COUNTY OF KING, STATE OF WASHINGTON

A-3
 

EXHIBIT F
FORM OF DEED
[333 108th Avenue N.E., Bellevue, Washington]
Filed for Record at Request of and
Copy returned to:

						
	  Grantor:
 

Grantee:

	EQC Operating Trust, a Maryland real estate investment trust, successor in interest to Hub Bellevue Properties LLC

____________________, a ____________________

	  Legal Description (abbreviated):

	___________________

	Assessor’s Property Tax Parcel Number:	154410-0316-08

BARGAIN AND SALE DEED
The Grantor, EQC OPERATING TRUST, a Maryland real estate investment trust, successor in interest to Hub Bellevue Properties LLC, for and in consideration of Ten Dollars ($10.00) in hand paid, bargains, sells and conveys to ______________, a _____________, the Grantee, that real property situated in the County of King, State of Washington, and legally described on the attached Schedule A, incorporated herein by this reference, together with all buildings, structures, fixtures, systems and other improvements located on the real property excluding fixtures owned by tenants (“Property”).
SUBJECT TO all matters and encumbrances set forth on Schedule B attached hereto.
TO HAVE AND TO HOLD the Property, subject to the foregoing; and Grantor does hereby warrant and forever defend the Property, subject to the foregoing, unto Grantees against every person whomsoever lawfully claiming or to claim the same or any part thereof, by, through or under Grantor, but not otherwise.

F-1

[Signature Page Follows]

F-2

DATED effective the ____ day of _____________, 2020.
									
	GRANTOR:		

	

		

	EQC OPERATING TRUST,                                  a Maryland real estate investment trust, successor in interest to Hub Bellevue Properties LLC
		

	By:	

	

	Name:	

	

	Its:	

	

[Notary Acknowledgment Page Follows]

F-3

STATE OF ________ )
) ss
County of _________ )
On this, the ___ day of __________, 20___ before me, a Notary Public, the undersigned officer, personally appeared   [Name] , who acknowledged [himself/herself] to be the  [Title]   of  [Company Name] , and that [he/she] in such capacity, being authorized to do so, executed the foregoing instrument for the purposes therein contained by signing on behalf of said entity.
                                                       
NOTARY PUBLIC
Print Name:                                    
Commission No.                        
My commission expires:             

F-4

Schedule A
to
Bargain and Sale Deed

Legal Description

F-5

Schedule B
to
Bargain and Sale Deed

Exceptions

1.Acts of Grantee, and those claiming by, through and under Grantee.
2.Any service, installation, connection, maintenance, construction, tap or reimbursement charges/costs for sewer, water, garbage or electricity.
3.Potential charges for the King County Sewage Treatment Capacity Charge, as authorized under RCW 35.58 and King County Code 28.84.050.
4.Facility Charges, if any, including but not limited to hook-up, or connection charges and latecomer charges for water or sewer facilities of City of Bellevue as disclosed by instrument recorded November 9, 1977 as Recording No. 7711090948.
5.Facility Charges, if any, including but not limited to hook-up, or connection charges and latecomer charges for water or sewer facilities of City of Bellevue as disclosed by instrument recorded December 20, 1996 as Recording No. 9612200938.
6.General and special taxes and assessments not delinquent as of the date of this Deed.
7.Rights of tenants in possession, as tenants only, under unrecorded leases.
8.Zoning, building and other governmental and quasi-governmental laws, codes and regulations.
9.(A) Unpatented mining claims; (B) reservations or exceptions in patents or in acts authorizing the issuance thereof; (C) Water rights, claims or title to water; whether or not the matters excepted under (A), (B), or (C) are shown by the public records; (D) Indian Tribal Codes or Regulations, Indian Treaty or Aboriginal Rights, including easements or equitable servitudes.
10.Covenants, conditions, restrictions, and private or public utility easements of record.
11.Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey would disclose, and which are not shown by public records.
12.Liens or possible liens arising from work contracted for, or performed by, tenants under leases.
13.[All other exceptions approved in accordance with the provisions of Section 3 of the Agreement, to the extent such exceptions would not be described under Items 1-12 above.]

F-6

EXHIBIT G
BILL OF SALE AND GENERAL ASSIGNMENT
[333 108th Avenue N.E., Bellevue, Washington]
This instrument is executed and delivered to be effective as of ______________, 20__, by and between [SELLER] (“Seller”), and [PURCHASER] (“Purchaser”), covering the real property described in Exhibit A attached hereto (“Real Property”), commonly known as “[NAME]” (the “Building”).
WHEREAS, Seller and [Purchaser][_______, as predecessor in interest to Purchaser] are parties to that certain Real Estate Sale Agreement (as may have been amended from time to time, the “Sale Agreement”), dated ______________, 2020, pursuant to which Seller has agreed to convey to Purchaser all of Seller’s right, title and interest in the Real Property.
WHEREAS, Seller and Purchaser are entering into this Assignment pursuant to the terms of the Sale Agreement.
1.Sale of Personal Property.  For good and valuable consideration, Seller hereby sells, transfers, sets over and conveys to Purchaser all of Seller’s right, title, and interest in and to the Tangible Personal Property (as defined in the Agreement), other than the items set forth on the list attached hereto as Exhibit B.
2.General Assignment.  For good and valuable consideration, Seller hereby assigns, transfers, sets over and conveys to Purchaser, all of Seller’s right, title and interest in and to (i) the Leases (as defined in the Company Disclosure Letter) and security deposits (“Security Deposits”) described in Exhibit C attached hereto relating to the Real Property (but subject to any rights or obligations with respect to the Leases retained by Seller in the Sale Agreement), (ii) the service contracts described in Exhibit D attached hereto (the “Service Contracts”), (iii) the contracts described in Exhibit E attached hereto (the “Construction Contracts”) and (iv) the Asset-Related Property (as defined in the Sale Agreement).  Purchaser hereby accepts such assignment and hereby assumes and agrees to be bound by and to perform, effective as of the date hereof, all of the obligations, covenants and agreements of Seller under the Leases, Service Contracts, Construction Contracts and Asset-Related Property, in each case solely to the extent arising from and after the date hereof.
3.Exclusions.  Notwithstanding the foregoing, Seller hereby expressly excludes all property owned by tenants or other third party users or occupants of the Property, all rights with respect to any refund of taxes applicable to any period prior to the date hereof, all rights to any insurance proceeds or settlements for events occurring prior to the date hereof (subject to Section 5 of the Agreement), and all property owned by Seller’s property manager, in each case subject to the terms of the Sale Agreement, in each case to the extent set forth in the Sale Agreement.
G-1

4.Successors and Assigns.  This instrument is binding upon, and shall inure to the benefit of Seller and Purchaser and their respective heirs, legal representatives, successors and assigns.
5.Power and Authority.  Each of Purchaser and Seller represents and warrants to the other that it is fully empowered and authorized to execute and deliver this instrument, and that the individual signing this instrument on its behalf is fully empowered and authorized to do so.
6.Attorneys’ Fees.  In the event of litigation between the parties with respect to this Assignment, the sole prevailing party therein shall be entitled to recover from the losing party all of its costs of enforcement and litigation, including, but not limited to, its reasonable attorneys’ and paralegal fees, witness fees, court reporters’ fees and other costs of suit.
7.Limitations on Liability.  Seller’s liability hereunder shall, at all times, be subject to the limitations set forth in Section 10 of the Agreement.
8.Counterparts.  This Assignment may be signed in any number of counterparts each of which shall be deemed to be an original and all of which taken together shall constitute one and the same instrument.
[signature page follows next]

G-2

IN WITNESS WHEREOF, the undersigned have caused this instrument to be executed effective as of the date written above.
						
	SELLER:	[SELLER]

By:                                   
Name:                                     
Its:                           

	

	

	PURCHASER:	[PURCHASER]

By:                                   
Name:                                     
Its:                           

G-3

EXHIBIT H
NOTICE TO TENANTS
[333 108th Avenue N.E., Bellevue, Washington]
___________, 20__
Re: Sale of [NAME], [CITY], [STATE] (the “Property”)
Dear Tenant:
This is to notify you that the Property has been sold to [PURCHASER] (“Purchaser”) and that ____________________________ has been retained by the Purchaser as managing agent of the building.  Any security or other deposits and any prepaid rents under your lease have been transferred to the new owner.
Effective immediately, all rental payments, notices to the Landlord, and correspondence pursuant to your lease should be mailed to such address as Purchaser may direct in a separate notice.
						
	

	Very truly yours,
[SELLER]

By:                                        
Name:                                                 
Its:                                      

H-1

EXHIBIT I
NOTICE TO VENDORS
[333 108th Avenue N.E., Bellevue, Washington]
______________, 20__
Re: Sale of [NAME], [CITY], [STATE] (the “Property”)
Dear Contractor:
This is to notify you that the Property has been sold to [PURCHASER] (“Purchaser”).  Purchaser has assumed all of the obligations of the undersigned under the contract with you as of the date hereof.  All notices to Purchaser should be sent to Purchaser in the manner provided to such address as Purchaser may direct in a separate notice.
						
	

	Very truly yours,
[SELLER]

By:                                                 
Name:                                                 
Its:                                                 

I-1

EXHIBIT J
CERTIFICATE OF NON-FOREIGN STATUS
[333 108th Avenue N.E., Bellevue, Washington]
Section 1445 of the Code provides that a transferee of a U.S. real property interest must withhold tax if the transferor is a foreign person.  For U.S. tax purposes (including Section 1445), the owner of a disregarded entity (which has legal title to a U.S. real property interest under local law) will be the transferor of the property and not the disregarded entity.  _______________, a ______________________(“Transferor”), is the owner for U.S. tax purposes of the property commonly known as __________________.  To inform the transferee that withholding of tax is not required upon the disposition of a U.S. real property interest by Transferor, the undersigned hereby certifies the following on behalf of Transferor:
1. Transferor is not a foreign corporation, foreign partnership, foreign trust, or foreign estate (as those terms are defined in the Internal Revenue Code and Income Tax Regulations);
2. Transferor’s U. S. employer identification number is ___________;
3. Transferor’s office address is Two North Riverside Plaza, Suite 2100, Chicago, Illinois 60606; and
4. Transferor is not a “disregarded entity” as defined in IRS Regulation 1.1445-2(b)(2)(iii).
Transferor understands that this certification may be disclosed to the Internal Revenue Service by transferee and that any false statement contained herein could be punished by fine, imprisonment or both.
Under penalties of perjury, I declare that I have examined this certification and to the best of my knowledge and belief it is true, correct and complete, and I further declare that I have authority to sign this document on behalf of Transferor.
						
	

	[TRANSFEROR]

By:                            
Name:                                     
Its:                             

J-1

Exhibit 12.13
SAMPLE PRESS RELEASE
Seller entered into a contract on February 12, 2020, to sell its 435,000 square foot office property at 333 108th Avenue NE in Bellevue, WA, for a gross sale price of $401.5 million. Proceeds after credits primarily for contractual lease costs and transfer taxes are expected to be approximately $XXX.X million. The closing is expected to occur on or before March 12, 2020. This transaction is subject to customary closing conditions and extensions, and there is no certainty that it will close.
Ex. 12.13-1Exhibit 10.1

 

AMENDED AND RESTATED CREDIT AGREEMENT

 

This Amended and Restated
Credit Agreement (the “Agreement”) is entered into effective as of the 1st day of December, 2019, by and between Bioanalytical
Systems, Inc., an Indiana corporation (“Borrower”), and FIRST INTERNET
BANK OF INDIANA, an Indiana state bank (“Bank”).

 

Section 1. Definitions.

 

Certain capitalized
terms have the meanings set forth on Exhibit 1 hereto or in the Security Agreement. All financial terms used
in this Agreement but not defined on Exhibit 1 or in the Security Agreement have the meanings given to them by generally
accepted accounting principles. All other undefined terms have the meanings given to them in the Indiana Uniform Commercial Code.

 

Section 2.  Loans.

 

2.1.         Revolving
Credit Loans. (a)  Subject to the terms and conditions of this Agreement, Bank hereby extends or continues to extend to
Borrower a revolving line of credit facility (the “Facility”) under which Bank shall make loans (the “Revolving
Loans”) to Borrower at Borrower’s request from time to time during the term of this Agreement in an aggregate amount
not to exceed Five Million and No/100 Dollars ($5,000,000.00). Borrower may, from time to time, borrow, repay (without penalty
or charge), and reborrow under the Facility, provided that the principal amount of all Revolving Loans outstanding at any one time
under the Facility will not exceed the lesser of (i) Five Million and No/100 Dollars ($5,000,000.00) and (ii) the Borrowing
Base (the “Revolving Loan Availability”). If the amount of Revolving Loans outstanding at any time under the Facility
exceeds the Revolving Loan Availability, Borrower will, upon request, immediately pay the amount of such excess to Bank in cash.
In the event Borrower fails to pay such excess following any such request, Bank may, in its discretion, setoff such amount against
Borrower’s accounts at Bank, if any, and, if such excess is not satisfied by such setoff, declare an Event of Default.

 

(b)          Borrower
may request a Revolving Loan by written or telephone notice to Bank. Bank will make Revolving Loans by crediting the amount thereof
to Borrower’s account at Bank, if any, or as otherwise directed by Borrower and approved by Bank. Loan proceeds will be used
for general business purposes.

 

(c)          On
June 23, 2017, Borrower originally issued and delivered to Bank a revolving note in the original principal amount of Two Million
and No/100 Dollars ($2,000,000.00) (the “Original Note”), which Original Note has been previously amended and is being
further amended and restated as of December 1, 2019 in the maximum principal amount of Five Million and No/100 Dollars ($5,000,000.00)
in the form attached hereto as Exhibit 2.1C (the “Revolving Note”), bearing interest and repayable as specified
in the Revolving Note.

 

(d)          The
term of the Facility will expire on January 31, 2021, and the Revolving Note will become payable in full on that date.

 

(e)          On
the date hereof, Borrower shall pay to Bank, for Bank’s sole account in immediately available funds, a non-refundable fee
associated with the Facility in the amount of Thirty Thousand and No/100 Dollars ($30,000.00).

 

    1

     

    

 

2.2          Term
Loan. (a)  Subject to the terms and conditions hereof, Bank shall continue a term loan (the “Term Loan”) originally
made to Borrower on June 23, 2017 in the aggregate amount of Four Million Five Hundred Thousand and No/100 Dollars ($4,500,000.00).
The unpaid principal balance, together with all accrued but unpaid interest and reimbursable expenses, shall be payable in accordance
with the terms of the Term Loan as evidenced by a Term Loan Note (the “Term Note”) issued by Borrower to Bank on June 23,
2017 with a final maturity date of June 23, 2022, and otherwise in substantially the form of Exhibit 2.2.

 

(b)          The
proceeds of the Term Loan refinanced Borrower’s debt with The Huntington Bank and also were available for general business
purposes.

 

(c)          Borrower
shall have the right to prepay the principal of the Term Loan in accordance with the provisions and prepayment penalties set forth
in the Term Note. Early principal payments will not, unless agreed to by Bank in writing, relieve Borrower of Borrower’s
obligation to continue to make regular monthly payments required by the Term Note. Rather, early payments will reduce the principal
balance due and may result in Borrower’s making fewer payments. Borrower agrees not to send Bank payments marked “paid
in full”, “without recourse” or similar language. If Borrower sends such a payment, Bank may accept it without
losing any of Bank’s rights under the Term Note, and Borrower will remain obligated to pay any further amount owed to Bank.

 

2.3          Term
Loan #2 (a)  Subject to the terms and conditions hereof, Bank shall continue a term loan (the “Term Loan #2”)
originally made to Borrower on July 2, 2018 in the aggregate amount of Five Million Five Hundred Thousand and No/100 Dollars
($5,500,000.00). The unpaid principal balance, together with all accrued but unpaid interest and reimbursable expenses, shall be
payable in accordance with the terms of the Term Loan #2 as evidenced by a Term Loan Note (the “Term Note #2”) issued
by Borrower to Bank on July 2, 2018 with a final maturity date of July 2, 2023, and otherwise in substantially the form
of Exhibit 2.3.

 

(b)          The
proceeds of the Term Loan #2 supported the acquisition of Seventh Wave Laboratories, LLC and also were available for general business
purposes.

 

(c)          Borrower
shall have the right to prepay the principal of the Term Loan #2 in accordance with the provisions and prepayment penalties set
forth in the Term Note #2. Early principal payments will not, unless agreed to by Bank in writing, relieve Borrower of Borrower’s
obligation to continue to make regular monthly payments required by the Term Note #2. Rather, early payments will reduce the principal
balance due and may result in Borrower’s making fewer payments. Borrower agrees not to send Bank payments marked “paid
in full”, “without recourse” or similar language. If Borrower sends such a payment, Bank may accept it without
losing any of Bank’s rights under the Term Note #2, and Borrower will remain obligated to pay any further amount owed to
Bank.

 

    2

     

    

 

2.4          Construction
Loan. (a)  Subject to the terms and conditions hereof, Bank shall continue a construction draw loan (the “Construction
Loan”) originally made to Borrower on September 28, 2018 in the aggregate amount not to exceed the Maximum Amount.
Subject to the terms of Section 2.6 set forth herein and so long as no Event of Default has occurred, Borrower may obtain
advances under the Construction Loan until the Term-Out Date, at which time Borrower’s right to obtain advances under the
Construction Loan shall terminate and the unpaid principal balance, together with all accrued but unpaid interest and reimbursable
expenses, shall be payable in accordance with the terms of that certain Construction Loan Note issued by Borrower to Bank dated
September 28, 2018, as amended, modified or restated from time to time (the “Construction Loan Note”). The term
of the Construction Loan shall expire on March 28, 2025 (the “Construction Loan Maturity Date”), unless the Construction
Loan is sooner paid pursuant to the terms hereof.

 

(b)          The
proceeds of the Construction Loan funded construction of an 11,300 square foot building expansion on Premises #2 (the “Project”).

 

(c)          Borrower
shall have the right to prepay the principal of the Construction Loan in accordance with the provisions and prepayment penalties
set forth in the Construction Loan Note. Early principal payments will not, unless agreed to by Bank in writing, relieve Borrower
of Borrower’s obligation to continue to make regular monthly payments required by the Construction Loan Note. Rather, early
payments will reduce the principal balance due and may result in Borrower’s making fewer payments. Borrower agrees not to
send Bank payments marked “paid in full”, “without recourse” or similar language. If Borrower sends such
a payment, Bank may accept it without losing any of Bank’s rights under the Construction Loan Note, and Borrower will remain
obligated to pay any further amount owed to Bank.

 

2.5          Equipment
Loan. (a)  Subject to the terms and conditions hereof, Bank shall continue an equipment draw loan (the “Equipment
Loan”) originally made to Borrower on September 28, 2018 in the aggregate amount of One Million Four Hundred Twenty-Nine
Thousand Two Hundred Fifty and No/100 Dollars ($1,429,250.00). So long as no Event of Default has occurred, Borrower may obtain
advances under the Equipment Loan until the Term-Out Date, at which time Borrower’s right to obtain advances under the Equipment
Loan shall terminate and the unpaid principal balance, together with all accrued but unpaid interest and reimbursable expenses,
shall be payable in accordance with the terms of that certain Equipment Loan Note issued by Borrower to Bank dated September 28,
2018, as amended, modified or restated from time to time (the “Equipment Loan Note”). The term of the Equipment Loan
shall expire on March 28, 2025 (the “Equipment Loan Maturity Date”), unless the Equipment Loan is sooner paid
pursuant to the terms hereof.

 

(b)          The
proceeds of the Equipment Loan will be used to fund equipment needs for the Project.

 

(c)          Borrower
shall have the right to prepay the principal of the Equipment Loan in accordance with the provisions and prepayment penalties set
forth in the Equipment Loan Note. Early principal payments will not, unless agreed to by Bank in writing, relieve Borrower of Borrower’s
obligation to continue to make regular monthly payments required by the Equipment Loan Note. Rather, early payments will reduce
the principal balance due and may result in Borrower’s making fewer payments. Borrower agrees not to send Bank payments marked
 “paid in full”, “without recourse” or similar language. If Borrower sends such a payment, Bank may accept
it without losing any of Bank’s rights under the Equipment Loan Note, and Borrower will remain obligated to pay any further
amount owed to Bank.

 

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2.6          Disbursement
Requirements

 

(a) General Disbursement
Requirements. In addition to the requirements of Section 2.6(b)-(c) hereof, all requests for disbursements of Construction
Loan proceeds, including payments to be made to the Contractor or pursuant to any construction management agreement to be approved
by the Bank pursuant to this Agreement, shall be made in accordance with the following requirements. These procedures are solely
for the benefit of the Bank and do not constitute the Bank as the agent of the Borrower. The Borrower has no right to rely on
these procedures for the protection of its interests. All disbursement requests shall be submitted to the Bank shall include a
standard AIA Document G702 and G703, or such other form as shall be approved by the Bank, shall be approved by the Inspecting
Architect, shall be certified as accurate by the Contractor and the Borrower, and shall indicate thereon the total cost of the
Site Improvements authorized by the Bank and commenced by the Borrower, the total value of work in place or stored on Premises
#2 for the Project, the total amounts previously disbursed by category of work for the Project, the amounts for which disbursement
is then being requested and the cost of completing the Project. Each request for disbursement shall be subject to approval by
the Bank and, following such approval, the Bank shall cause to be transferred by (i) direct deposit to the Borrower’s
account with the Bank, or (ii) to such other person or entity as the Borrower may direct and as may be acceptable to the
Bank, an amount not to exceed the approved amount of disbursement. The funds shall be either paid directly to the person or entity
as directed by the Borrower or transferred by direct deposit or check to the Borrower’s checking account within not more
than five (5) days following the date of approval of the disbursement by the Bank. The Borrower shall be responsible for
advising the Bank of any delays in receiving any disbursement and shall allow the Bank a reasonable opportunity to cure any defect
or deficiency in such transfer. Each disbursement request by the Borrower shall be deemed to be a request and consent to the disbursement
of Construction Loan proceeds up to the amount of such request, plus any unpaid interest, fees and expenses, which may be then
owed by the Borrower, and each transfer of Construction Loan proceeds in accordance herewith shall, as of the day of such transfer
by the Bank, be deemed to be an authorized disbursement of Construction Loan proceeds, thereby increasing the principal balance
due under the Construction Loan Note. Except for payment by the Bank of Inspecting Architect’s fees, disbursements shall
be made not more frequently than monthly.

 

(b)          Requirements
for Interim Disbursements. Unless waived in whole or in part by the Bank or the Bank’s representative, the Borrower shall
submit the following items to the Bank prior to or together with each request for disbursement of Construction Loan proceeds:

 

(i)           A
current endorsement to the title commitment by the appropriate title insurance company in which the title insurance company shall
increase the amount of the title insurance coverage to the total principal amount then outstanding under the Construction Loan.

 

(ii)          Such
certificates by the Contractor and the Borrower as shall be requested by the Bank.

 

(iii)         Disbursement
requests on Form AIA G702 and AIA G703 and photocopies of all bills and invoices from all contractors, subcontractors, suppliers
and materialmen requesting payment.

 

(iv)         Lien
waivers from the Contractor with respect to disbursements as set forth in Section 2.6(b)(iii) and from all contractors,
subcontractors, suppliers and materialmen (“Subcontractors”) with contracts over $25,000.00 with respect to the immediately
prior disbursements.

 

    4

     

    

 

(v)          A
revised and updated Cost Breakdown reflecting the effects of approved change orders (not to exceed $25,000 without Bank’s
consent), detailing the amount of any costs savings or overruns, and indicating the amount, if any, of additional equity required
from the Borrower to maintain a loan-to-value of not greater than eighty-five percent (85%).

 

(vi)         The
Borrower shall submit monthly and before each disbursement of Construction Loan proceeds the revised budgets of the Project indicating
all amounts previously spent and projected to be spent for Site Improvements and Building, proceeds received, interest, architectural
fees, engineering fees, legal fees, accounting fees, commitment fees, title insurance, inspection fees, recording fees, and release
fees through the termination of the Project certified by the authorized representative of the Borrower, in form and substance acceptable
to the Bank, including that such budgets and cash flow projections have been prepared on a basis consistent with those previously
provided to the Bank and that the assumptions upon which they were prepared are reasonable and have not been changed from previous
submissions except as indicated therein.

 

(vii)        The
Inspecting Architect shall have physically inspected the Project and approved the disbursement request.

 

(viii)       If
the Borrower shall not have included any interest, fees or expenses then payable to the Bank or for which the Bank shall require
immediate reimbursement, the Borrower shall so indicate to the Bank and shall pay such amount to the Bank and if not paid when
due and after any applicable cure period, the Bank is authorized to disburse such interest to itself and add such amount to the
principal outstanding hereunder.

 

(c)          Requirements
For Final Disbursement. In addition to the requirements set forth hereinabove for interim disbursements, the following conditions
shall be satisfied and the following additional items shall be required for the final disbursement of Construction Loan proceeds:

 

(i)           The
Project shall be substantially completed in accordance with the provisions set forth herein and shall be ready for use in the Borrower’s
business. Substantial completion of the Site Improvements shall be evidenced by such proof as the Bank may in its reasonable discretion
require, which proof shall include, but not be limited to, the following:

 

(a)           Inspection
by a representative or agent of the Bank and certification of completion by the Inspecting Architect;

 

(b)          An
affidavit by the Contractor certifying that construction of the Site Improvements and Building has been completed in accordance
with the Plans and Specifications previously approved by Bank and all governmental authorities, that the Contractor has been (or
will be with proceeds of the final disbursement) paid in full for such work, that all subcontractors, laborers, materialmen and
suppliers of labor or material to the Project at the request of the Contractor have been paid in full and that no such person or
entity claims or has a right to claim a valid mechanic’s or materialmen’s lien on Premises #2 or any part thereof,
and containing such other customary representations as the Bank shall deem reasonably appropriate;

 

    5

     

    

 

(c)          An
updated as-built survey showing that all Site Improvements and Building are complete and indicating all easements, rights-of-way
and all other encumbrances and exceptions. Such as-built survey shall be accompanied by a certificate from the surveyor indicating
compliance with the ALTA Minimum Standard Detail Requirements. Such certificate shall be addressed to the Borrower, the Bank and
the appropriate title company;

 

(d)          Original
waivers of lien from the Contractor and from all subcontractors who will receive any of such proceeds;

 

(e)           Satisfactory
evidence of connection of all public utilities to the Project; and

 

(f)           An
affidavit by the Borrower certifying that to its knowledge construction of the Site Improvements and the Building is substantially
complete in all material respects and has been performed in accordance with the plans and specifications previously approved by
all governmental authorities, that all necessary occupancy, drainage and zoning licenses, certificates, approvals and/or permits
have been issued, that all contractors and suppliers for the Project have been (or will be with proceeds of the final disbursement)
fully paid and no one has currently filed or has a right to file a valid mechanic’s or materialmen’s lien on the Project
or any part thereof, that there are no liens or encumbrances on all or any part of the Project other than those in favor of the
Bank or those which have been approved in writing by the Bank, that all utilities are provided by governmental or public utility
entities and have been connected to the Building, as appropriate, that Premises #2 is not located in a flood hazard area, that
Premises #2 is not in violation of federal or state law provisions regarding the removal of hazardous waste from Premises #2, and
certifying to all other customary matters which may reasonably be requested by the Bank.

 

(ii)          The
appropriate title company shall issue a final endorsement to its policy, agreeing to delete all standard exceptions, including
survey exceptions, from its final title insurance policy, and including a 3.1 zoning endorsement thereto. The title insurance commitment
shall indicate that there are no recorded liens or encumbrances on or security interests in Premises #2 or the Borrower’s
interest in Premises #2 or any collateral defined in this Agreement other than (i) utility easements, (ii) any items
that have been approved by the Bank, and (iii) any other items permitted under the Loan Documents.

 

2.7          Term
Loan #3. (a)  Subject to the terms and conditions hereof, Bank shall continue a term loan (the “Term Loan #3”)
originally made to Borrower on May 1, 2019 in the aggregate amount of One Million Two Hundred Seventy Thousand Six Hundred
Forty-Six and 10/100 Dollars ($1,270,646.10). The unpaid principal balance, together with all accrued but unpaid interest and reimbursable
expenses, shall be payable in accordance with the terms of the Term Loan #3 as evidenced by a Term Loan Note (the “Term Note
#3”) issued by Borrower to Bank on May 1, 2019 with a final maturity date of November 1, 2025, and otherwise in
substantially the form of Exhibit 2.7.

 

(b)          The
proceeds of the Term Loan #3 supported the acquisition of the assets of Smithers Avanza Toxicology Services LLC and also were available
for general business purposes.

 

(c)          Borrower
shall have the right to prepay the principal of the Term Loan #3 in accordance with the provisions and prepayment penalties set
forth in the Term Note #3. Early principal payments will not, unless agreed to by Bank in writing, relieve Borrower of Borrower’s
obligation to continue to make regular monthly payments required by the Term Note #3. Rather, early payments will reduce the principal
balance due and may result in Borrower’s making fewer payments. Borrower agrees not to send Bank payments marked “paid
in full”, “without recourse” or similar language. If Borrower sends such a payment, Bank may accept it without
losing any of Bank’s rights under the Term Note #3, and Borrower will remain obligated to pay any further amount owed to
Bank.

 

    6

     

    

 

2.8          Capex
Line of Credit. (a)  Subject to the terms and conditions hereof, Bank shall continue an equipment draw loan (the “Capex
Line of Credit”) originally made to Borrower on May 1, 2019 in the aggregate amount of One Million One Hundred Thousand
and No/100 Dollars ($1,100,000.00). So long as no Event of Default has occurred, Borrower may obtain advances under the Equipment
Loan until December 1, 2019, at which time Borrower’s right to obtain advances under the Capex Line of Credit shall
terminate. The unpaid principal balance, together with all accrued but unpaid interest and reimbursable expenses, shall be payable
in accordance with the terms of that certain Capex Line of Credit Note issued by Borrower to Bank on May 1, 2019, as amended,
modified or restated from time to time (the “Capex Line of Credit Note”), in substantially the form of Exhibit 2.8.
The term of the Capex Line of Credit shall expire on June 30, 2020 (the “Capex Line of Credit Maturity Date”),
unless the Capex Line of Credit is sooner paid pursuant to the terms hereof.

 

(b)          The
proceeds of the Capex Line of Credit will be used to fund equipment needs of the Borrower and its Consolidated Subsidiaries.

 

(c)          Borrower
shall have the right to prepay the principal of the Capex Line of Credit in accordance with the provisions and prepayment penalties
set forth in the Capex Line of Credit Note. Early principal payments will not, unless agreed to by Bank in writing, relieve Borrower
of Borrower’s obligation to continue to make regular monthly payments required by the Capex Line of Credit Note. Rather,
early payments will reduce the principal balance due and may result in Borrower’s making fewer payments. Borrower agrees
not to send Bank payments marked “paid in full”, “without recourse” or similar language. If Borrower sends
such a payment, Bank may accept it without losing any of Bank’s rights under the Capex Line of Credit Note, and Borrower
will remain obligated to pay any further amount owed to Bank.

 

2.9      Term
Loan #4.     (a)  Subject to the terms and conditions hereof, Bank shall make to Borrower
a term loan (the “Term Loan #4”) on the date hereof in an aggregate amount of One Million Five Hundred Thousand and
No/100 Dollars ($1,500,000.00). The unpaid principal balance, together with all accrued but unpaid interest and reimbursable expenses,
shall be payable in accordance with the terms of the Term Loan #4 as evidenced by a Term Loan Note (the “Term Note #4”)
to be issued by Borrower to Bank dated on the date hereof with a final maturity date of June 1, 2025, and otherwise in substantially
the form of Exhibit 2.9.

 

(b)          The
proceeds of the Term Loan #4 will be used to support the acquisition of the assets of PreClinical Research Services, Inc.
and for general business purposes.

 

(c)          Borrower
shall have the right to prepay the principal of the Term Loan #4 in accordance with the provisions and prepayment penalties set
forth in the Term Note #4. Early principal payments will not, unless agreed to by Bank in writing, relieve Borrower of Borrower’s
obligation to continue to make regular monthly payments required by the Term Note #4. Rather, early payments will reduce the principal
balance due and may result in Borrower’s making fewer payments. Borrower agrees not to send Bank payments marked “paid
in full”, “without recourse” or similar language. If Borrower sends such a payment, Bank may accept it without
losing any of Bank’s rights under the Term Note #4, and Borrower will remain obligated to pay any further amount owed to
Bank.

 

    7

     

    

 

(d)          On
the date hereof, Borrower shall pay to Bank, for Bank’s sole account in immediately available funds, a non-refundable fee
associated with the Term Loan #4 in the amount of Fifteen Thousand and No/100 Dollars ($15,000.00).

 

2.10    Term
Loan #5.     (a)  Subject to the terms and conditions hereof, Bank shall make to Borrower
a term loan (the “Term Loan #5”) on the date hereof in an aggregate amount not to exceed the lesser of (i) One
Million Nine Hundred Thirty-Nine Thousand and No/100 Dollars ($1,939,000.00), or (ii) eighty percent (80%) of the appraised
value of the Premises #3 (as defined herein). The unpaid principal balance, together with all accrued but unpaid interest and reimbursable
expenses, shall be payable in accordance with the terms of the Term Loan #5 as evidenced by a Term Loan Note (the “Term Note
#5”) to be issued by Borrower to Bank dated on the date hereof with a final maturity date of December 1, 2024, and otherwise
in substantially the form of Exhibit 2.10.

 

(b)          The
proceeds of the Term Loan #5 will be used to support the acquisition of certain real property located at 1512 Webster Court, Fort
Collins, Colorado, consisting of 1.69 acres (the “Premises #3”) and all improvements thereon, and for general business
purposes.

 

(c)          Borrower
shall have the right to prepay the principal of the Term Loan #4 in accordance with the provisions and prepayment penalties set
forth in the Term Note #4. Early principal payments will not, unless agreed to by Bank in writing, relieve Borrower of Borrower’s
obligation to continue to make regular monthly payments required by the Term Note #4. Rather, early payments will reduce the principal
balance due and may result in Borrower’s making fewer payments. Borrower agrees not to send Bank payments marked “paid
in full”, “without recourse” or similar language. If Borrower sends such a payment, Bank may accept it without
losing any of Bank’s rights under the Term Note #4, and Borrower will remain obligated to pay any further amount owed to
Bank.

 

(d)          On
the date hereof, Borrower shall pay to Bank, for Bank’s sole account in immediately available funds, a non-refundable fee
associated with the Term Loan #5 in the amount of Fourteen Thousand Five Hundred and No/100 Dollars ($14,500.00).

 

2.11    Capex
Line of Credit Loan #2.     (a)  Subject to the terms and conditions hereof, Bank shall continue
an equipment draw loan (the “Capex Line of Credit #2”) originally made to Borrower on December 1, 2019 in the
aggregate amount of Three Million and No/100 Dollars ($3,000,000.00). So long as no Event of Default has occurred, Borrower may
obtain advances under the Capex Line of Credit #2 until December 31, 2020, at which time Borrower’s right to obtain
advances under the Capex Line of Credit shall terminate. The unpaid principal balance, together with all accrued but unpaid interest
and reimbursable expenses, shall be payable in accordance with the terms of that certain Capex Line of Credit Note issued by Borrower
to Bank on December 1, 2019, as amended, modified or restated from time to time (the “Capex Line of Credit Note #2”),
in substantially the form of Exhibit 2.11. The term of the Capex Line of Credit #2 shall expire on December 31,
2020 (the “Capex Line of Credit #2 Maturity Date”), unless the Capex Line of Credit #2 is sooner paid pursuant to the
terms hereof.

 

(b)          The
proceeds of the Capex Line of Credit #2 will be used to fund equipment needs of the Borrower and its Consolidated Subsidiaries.

 

    8

     

    

 

(c)          Borrower
shall have the right to prepay the principal of the Capex Line of Credit #2 in accordance with the provisions and prepayment penalties
set forth in the Capex Line of Credit Note #2. Early principal payments will not, unless agreed to by Bank in writing, relieve
Borrower of Borrower’s obligation to continue to make regular monthly payments required by the Capex Line of Credit Note
#2. Rather, early payments will reduce the principal balance due and may result in Borrower’s making fewer payments. Borrower
agrees not to send Bank payments marked “paid in full”, “without recourse” or similar language. If Borrower
sends such a payment, Bank may accept it without losing any of Bank’s rights under the Capex Line of Credit Note #2, and
Borrower will remain obligated to pay any further amount owed to Bank.

 

(d)          On
the date hereof, Borrower shall pay to Bank, for Bank’s sole account in immediately available funds, a non-refundable fee
associated with the Capex Line of Credit #2 in the amount of Thirty Thousand and No/100 Dollars ($30,000.00).

 

Section 3.              Representations
And Warranties.

 

Borrower, to its knowledge,
hereby warrants and represents to Bank the following:

 

3.1.         Organization
and Qualification. Borrower is a duly organized and validly existing corporation in good standing under the laws of the State
of Indiana, has the necessary corporate power and authority to carry on its business and to enter into and perform this Agreement,
the Notes and the other Loan Documents, is qualified and licensed to do business in each jurisdiction in which the failure to have
such qualification would have a materially adverse effect on the Borrower. All information provided to Bank with respect to Borrower
and its operations is true and correct in all material respects.

 

3.2.         Due
Authorization. The execution, delivery and performance by Borrower of this Agreement, the Security Agreement, the Notes and
the other Loan Documents have been duly authorized by all necessary corporate action of Borrower, and will not contravene any law
or any governmental rule or order binding on Borrower, or the Articles of Incorporation or By-Laws of Borrower, nor violate
any agreement or instrument by which Borrower is bound nor result in the creation of a Lien on any assets of Borrower except the
Lien granted to Bank herein. Borrower has duly executed and delivered this Agreement, the Security Agreement, the Mortgage, the
Notes and the other Loan Documents and they are valid and binding obligations of Borrower enforceable according to their respective
terms except as limited by equitable principles and by bankruptcy, insolvency or similar laws affecting the rights of creditors
generally. No notice to or consent by any governmental body is needed in connection with this transaction.

 

3.3.         Litigation.
Except as disclosed on Exhibit 3.3 attached, there are no suits or proceedings pending or overtly threatened
in writing against Borrower or its assets, and no proceedings before any governmental body are pending or overtly threatened in
writing against Borrower, which in any case, if adversely determined, would have a material adverse effect on Borrower.

 

3.4.         Margin
Stock. No part of the Loans will be used to purchase or carry, or to reduce or retire or refinance any credit incurred to purchase
or carry, any margin stock (within the meaning of Regulations U and X of the Board of Governors of the Federal Reserve System)
or to extend credit to others for the purpose of purchasing or carrying any margin stock.

 

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3.5.         Licenses, etc.
Borrower has obtained any and all licenses, permits, franchises, governmental authorizations, patents, trademarks, copyrights
or other rights necessary for the ownership of its properties and the conduct of its business, except to the extent the failure
to have obtained any of the foregoing would not result in a material adverse effect on Borrower. Borrower possesses adequate licenses,
patents, patent applications, copyrights, trademarks, trademark applications, and trade names to continue to conduct its business
as heretofore conducted by it, without any conflict with the rights of any other person or entity. All of the foregoing are in
full force and effect and none of the foregoing are in known conflict with the rights of others.

 

3.6.         Laws
and Taxes. Borrower is in compliance in all material respects with all laws, regulations, rulings, orders, injunctions, decrees,
conditions or other requirements applicable to or imposed upon Borrower by any law or by any governmental authority, court or agency.
Borrower has filed all required tax returns and reports that are now required to be filed by it in connection with any federal,
state and local tax, duty or charge levied, assessed or imposed upon Borrower or its assets, including unemployment, social security,
and real estate taxes, except where the failure to file such tax returns or reports would not reasonably be expected to have a
material adverse effect on Borrower. Borrower has paid all taxes which are now due and payable, other than any such taxes as are
being contested by Borrower in good faith and by appropriate proceedings and for which adequate reserves have been set aside on
Borrower's books to the extent required by GAAP. Except as disclosed in Exhibit 3.6 attached, no taxing authority
has asserted or assessed any additional tax liabilities against Borrower which are outstanding on the date of this Agreement, and
Borrower has not filed for any extension of time for the payment of any tax or the filing of any tax return or report.

 

3.7.         Financial
Condition. All historical financial information relating to Borrower which has been or may hereafter be delivered by Borrower
or on its behalf to Bank is or when delivered will be true and correct in all material respects and, in all material respects,
has been or will be prepared in accordance with consistently applied sound accounting principles. Borrower has no material obligations
or liabilities of any kind not disclosed in that financial information, and, since the submission of the most recent financial
information to Bank, there has been no material adverse change in the financial condition of Borrower nor has Borrower suffered
any damage, destruction or loss which has adversely affected its business or assets.

 

3.8.         Title.
Borrower has good and marketable title to, or the right to use under valid leases, the assets reflected on the most recent balance
sheet submitted to Bank, free and clear from all liens and encumbrances of any kind, except for: (a) liens securing (i) current
taxes and assessments not yet due and payable or (ii) taxes being contested by Borrower in good faith and by appropriate proceedings
for which adequate reserves have been set aside on Borrower's books to the extent required by generally accepted accounting principles,
(b) liens and encumbrances, if any, reflected or noted on such balance sheet or notes thereto, (c) assets disposed of
in the ordinary course of business, (d) any security interests, pledges, assignments or mortgages granted to Bank to secure
the repayment or performance of the Obligations, (e) non-consensual statutory liens (other than
liens securing the payment of taxes) arising in the ordinary course of Borrower’s business (including such liens in favor
of landlords, warehousemen and mechanics and similar liens) to the extent such liens secure Indebtedness or other obligations relating
to claims or liabilities which are being contested in good faith by appropriate proceedings, in each case prior to the commencement
of foreclosure or other similar proceedings and with respect to which adequate reserves have been set aside on its books in accordance
with GAAP, (f) zoning restrictions, easements, licenses, covenants and other restrictions affecting the use of real property
which do not interfere in any material respect with the use of such real property or ordinary conduct of the business of Borrower
thereon or materially impair the value of the real property which may be subject thereto, (g) purchase money security interests
in equipment (including capital leases), (h) pledges and deposits of cash by Borrower in the ordinary course of business in
connection with workers’ compensation, unemployment insurance and other types of social security benefits, and (i) liens
and encumbrances as disclosed on Exhibit 3.8 attached hereto (collectively, the “Permitted Liens”).

 

    10

     

    

 

3.9.         Defaults.
Except as specifically disclosed in writing to Bank, Borrower is in compliance in all material respects with all material agreements
applicable to it and there does not now exist any default or violation by Borrower of or under any of the terms, conditions or
obligations of (a) its Articles of Incorporation or By-Laws, or (b) any indenture, mortgage, deed of trust, franchise,
permit, contract, agreement or other instrument to which Borrower is a party or by which it is bound, which would have a material
adverse effect on Borrower and the Guarantor taken as a whole, and the consummation of the transactions contemplated by this Agreement
will not result in such default or violation.

 

3.10.       Environmental
Laws. (a)  Borrower has obtained all material permits, licenses and other authorizations or approvals which are required
under Environmental Laws and except as disclosed in Exhibit 3.10 attached, Borrower is in compliance in all
material respects with all terms and conditions of the required permits, licenses, authorizations and approvals, and is also in
compliance in all material respects with all other limitations, restrictions, conditions, standards, prohibitions, requirements,
obligations, schedules and timetables contained in the Environmental Laws.

 

(b)          None
of Borrower's executive officers is aware of, and Borrower has not received written notice of, any past, present or future events,
conditions, circumstances, activities, practices, incidents, actions or plans which may reasonably be expected to interfere with
or prevent compliance or continued compliance, in any material respect, with Environmental Laws, or may reasonably be expected
to give rise to any material common law or legal liability, or otherwise form the basis of any material claim, action, demand,
suit, proceeding, hearing, study or investigation, based on or related to the manufacture, processing, distribution, use, treatment,
storage, disposal, transport or handling or the emission, discharge, release or threatened release into the environment, of any
pollutant, contaminant, chemical, or industrial, toxic or hazardous substance or waste.

 

(c)          There
is no civil, criminal or administrative action suit, demand, claim, hearing, notice or demand letter, notice of violation, investigation
or proceeding pending or overtly threatened in writing against Borrower, relating in any way to Environmental Laws.

 

3.11.       Subsidiaries
and Partnerships. Borrower has no subsidiaries other than Entity Guarantor and is not a party to any partnership agreement
or joint venture agreement.

 

3.12.       ERISA.
To Borrower's knowledge, Borrower and all individuals or entities along with Borrower that would be treated as a single employer
under ERISA or the Internal Revenue Code of 1986, as amended (an “ERISA Affiliate”), are in compliance with all of
their obligations to contribute to any “employee benefit plan” as that term is defined in Section 3(3) of
ERISA and any regulations promulgated thereunder from time to time. To Borrower's knowledge, Borrower and each of its ERISA Affiliates
are in compliance, in all material respects, with ERISA, and there exists no event described in Section 4043(b) thereof
(“Reportable Event”).

 

    11

     

    

 

3.13        USA
Patriot Act. Borrower represents and warrants that neither Borrower nor any of its affiliates is a country, individual or entity
named on the Specifically Designated National and Blocked Persons (SDN) list issued by the Office of Foreign Asset Control of the
Department of the Treasury of the United States of America.

 

Section 4.              Affirmative
Covenants.

 

4.1.         Books
and Records. Borrower will maintain proper books of account and records and enter therein complete and accurate entries and
records of all of its transactions in accordance with GAAP and give representatives of Bank access thereto at least once in each
calendar year, with such access to be granted upon reasonable prior notice and during ordinary business hours. During such examination
bank may examine, copy and make abstracts from any such books and records and such other information which might be helpful to
Bank in evaluating the status of the Loans. All inspections not taking place during the existence of an Event of Default shall
be at Bank’s expense. At least once annually, Borrower will give Bank reasonable access upon reasonable prior notice to
the Collateral and the other property securing the Obligations for the purpose of performing examinations thereof and to verify
its condition or existence.

 

4.2.         Financial
Statements. Borrower will maintain a standard and modern system for accounting and, so long as any of the Obligations remains
unpaid, will furnish to Bank:

 

(a)          As
soon as publically available in regulatory filings with the Securities and Exchange Commission, the Form 10-K consolidated
financial statements of Borrower and its subsidiaries as of the last day of and for the fiscal year then ended.

 

(b)          Not
later than December 31st of each year, commencing December 31, 2019, an audited balance sheet, operating statement,
and cash flow statement for Borrower (prepared in accordance with GAAP consistently applied unless otherwise specifically noted
therein), together with an annual budget for Borrower and updated certificate of insurance.

 

(c)          Within
forty-five (45) days after the end of each of the first three fiscal quarters of each fiscal year, commencing with the quarter
ending December 31, 2019, Borrower shall provide interim internally-prepared consolidated financial statements of Borrower
and its subsidiaries, including but not limited to, the financial statements required to be filed with the SEC as part of Borrower's
Form 10-Q report, an AR aging report, an AP aging report and a backlog report;

 

(d)         Within forty-five
(45) days after the end of each of the first three fiscal quarters of each fiscal year, and within one hundred twenty (120) days
of the end of each fiscal year, commencing with the fiscal year ending September 30, 2019, Borrower will provide a compliance
certificate in form satisfactory to Bank;

 

(e)          Within
twenty (20) days after the end of each calendar month in which the borrowing under the Facility at the end of such calendar month
equals or exceeds $1.00, a Borrowing Base Certificate with supporting Accounts Receivable Invoice Data Aging, Accounts Payable
Aging, and backlog report in a format acceptable to Bank;

 

    12

     

    

 

 

(f)          Such
other financial information reasonably requested by the Bank from time to time.

 

4.3.          Condition
and Repair. Borrower will maintain its assets in good repair and working order, except for ordinary wear and tear and obsolescence
and will make all appropriate repairs and replacements thereof.

 

4.4.          Insurance.
Borrower will insure its properties and business against loss or damage of the kinds and in the amounts customarily insured against
by companies of similar size with established reputations engaged in the same or similar business as Borrower, and as otherwise
required pursuant to the terms of the Security Agreement. All such policies will (a) be issued by financially sound and reputable
insurers, (b) name Bank as an additional insured and, where applicable, as loss payee and mortgagee under a lender loss payable
endorsement satisfactory to Bank, and (c) Borrower will make commercially reasonable efforts to cause such policy to provide
for not less than thirty (30) days written notice to Bank before such policy is altered or canceled all of which will be evidenced
by such certificates, declarations or other documentation satisfactory to Bank in Bank’s sole discretion and delivered to
Bank by Borrower on the date of execution of this Agreement.

 

4.5.          Taxes.
Borrower will pay when due all taxes, assessments and other governmental charges imposed upon it or its assets, franchises, business,
income or profits before any penalty or interest accrues thereon, and all claims (including, without limitation, claims for labor,
services, materials and supplies) for sums which by law might be a lien or charge upon any of its assets, provided that (unless
any material item or property would be lost, forfeited or materially damaged as a result thereof) no such charge or claim need
be paid if it is being diligently contested in good faith, if Bank is notified in advance of such contest and if Borrower establishes
an adequate reserve or other appropriate provision required by GAAP.

 

4.6.          Existence;
Business. Borrower will (a) maintain its existence, (b) engage primarily in business of the same general character
as that now conducted, and (c) refrain from entering into any lines of business substantially different from the business
or activities in which Borrower is presently engaged.

 

4.7.          Compliance
with Laws. Borrower will comply in all material respects with all federal, state and local laws, regulations and orders applicable
to Borrower or its assets including but not limited to all Environmental Laws, in all respects material to Borrower's business
or assets and will promptly, but in any event within seven (7) calendar days, notify Bank of any violation of any rule, regulation,
statute, ordinance, order or law relating to the public health or the environment and of any complaint or notifications received
by Borrower relating to any environmental or safety and health rule, regulation, statute, ordinance or law.

 

4.8.          Notice
of Default. Borrower will, within seven (7) calendar days of its knowledge thereof, give written notice to Bank of (a) the
occurrence of any Event of Default, and (b) the occurrence of any event or the existence of any condition which would prohibit
Borrower from continuing to make the representations set forth in this Agreement.

 

    	 	13	 

     

    

 

4.9.          Costs.
Borrower will pay to Bank its reasonable fees, costs and expenses, including, without limitation, reasonable attorneys’ fees,
other professionals’ fees, appraisal fees, environmental assessment fees, expert fees, court costs, litigation and other
expense (collectively, “Costs”) incurred or paid by Bank in connection with administering and enforcing the Loans and
the Loan Documents and the defense, preservation and protection of Bank’s rights and remedies thereunder, including without
limitation, its security interest in the Collateral or any other property pledged to secure the Loans, whether incurred in bankruptcy,
insolvency, foreclosure or other litigation or proceedings or otherwise. The Costs will be due and payable within five (5) days
of written demand by Bank. If Borrower fails to pay the Costs upon such demand, Bank is entitled to exercise any remedies set forth
herein for nonpayment and may disburse such sums as an advance under the Revolving Loan. Thereafter, the Costs will bear interest
from the date incurred or disbursed at the rate set forth in the Notes. This provision will survive the termination of this Agreement
and/or the repayment of any amounts due or the performance of any Obligation.

 

4.10          Other
Amounts Deemed Loans. If Borrower fails to pay any tax, assessment, governmental charge or levy or to maintain insurance within
the time permitted or required by this Agreement, or to discharge any Lien prohibited hereby, or to comply with any other Obligation,
Bank may, but shall not be obligated to, pay, satisfy, discharge or bond the same for the account of Borrower, and to the extent
permitted by law and at the option of Bank, all monies so paid by Bank on behalf of Borrower will be deemed Loans and Obligations.

 

4.11          Depository.
Borrower shall maintain its primary deposit accounts with the Bank.

 

4.12          Life
Insurance. Borrower shall, not later than March 1, 2019, obtain a life insurance policy or policies on the life of Robert
Leasure, Jr. in an aggregate amount not less than Five Million and No/100 Dollars ($5,000,000.00), provide Bank with an assignment
of such life insurance policy as collateral for all obligations of Borrower now existing or hereafter arising in favor of Bank,
and maintain such life insurance policy while any Obligations of the Borrower exist under this Agreement.

 

Section 5.               Negative
Covenants.

 

5.1.          Indebtedness.
Without the written consent of Bank, Borrower will not incur, create, assume or permit to exist any additional Indebtedness for
borrowed money (other than the Obligations) or Indebtedness on account of deposits, advances or progress payments under contracts,
notes, bonds, debentures or similar obligations or other indebtedness evidenced by notes, bonds, debentures, capitalized leases
or similar obligations except (a) Indebtedness not in excess of $100,000 at any one time outstanding, (b) purchase money
Indebtedness (including capital leases) to the extent secured by purchase money security interests in equipment (including capital
leases) and, upon the prior written consent of Bank, purchase money mortgages on real property so long as such security interests
and mortgages do not apply to any property of Borrower other than the equipment or real property so acquired, and the Indebtedness
secured thereby does not exceed the cost of the equipment or real property so acquired, as the case may be, (c) Indebtedness
in the form of deposits or advances from customers pursuant to contracts (including purchaser orders) for services to be performed
by Borrower in the ordinary course of business, and (d) other Indebtedness approved in writing by the Bank; provided that
any liabilities related to lease obligations existing as of December 1, 2019 that are required to be recorded in connection
with Borrower’s adoption of Accounting Standards Codification Topic 842, Leases shall not be prohibited by this Section 5.1
regardless of whether or not they are considered to be Indebtedness hereunder.

 

    	 	14	 

     

    

 

5.2.          Prepayments.
Borrower will not voluntarily prepay any Indebtedness owing by Borrower prior to one month in advance of the stated maturity date
thereof other than (i) the Obligations and (ii) Indebtedness to trade creditors where the prepayment will result in a
discount on the amount due.

 

5.3.          Leases.
Borrower will not enter into any lease of real property, as lessee, without prior written approval by Bank.

 

5.4.          Restricted
Payments. Borrower will not purchase or redeem any shares of the capital stock of Borrower or declare or pay any dividends
thereon or make any other distributions to shareholders, except for dividends payable entirely in capital stock and stock repurchases
in compliance with benefit plans in existence or hereafter adopted by Borrower.

 

5.5.          Pledge
or Encumbrance of Assets. Other than the Permitted Liens, Borrower will not create, incur, assume or permit to exist, arise
or attach any Lien in any present or future asset, except for (i) Liens to Bank; (ii) purchase money security interests
securing Indebtedness permitted pursuant to Section 5.1; (iii) any Lien or deposit with any
governmental agency required or permitted to qualify Borrower to conduct business or exercise any privilege, franchise or license,
or to maintain self-insurance or to obtain the benefits of or secure obligations under any law pertaining to worker's compensation,
unemployment insurance, old age pensions, social security or similar matters, or to obtain any stay or discharge in any legal or
administrative proceedings, or any similar lien or deposit arising in the ordinary course of business; (iv) Liens for taxes
and governmental charges which are not yet due or which are being contested in good faith and by appropriate proceedings and for
which appropriate reserves have been established to the extent required by GAAP; and (v) Liens imposed by law which secure
amounts not at the time due and payable.

 

5.6.          Guarantees
and Loans. Borrower will not enter into any direct or indirect guarantees other than (a) by endorsement of checks for
deposit, and (b) guarantees in favor of Bank. Borrower will not, other than in the ordinary course of business, make any advance
or loan, including, without limitation, loans and advances to employees of Borrower.

 

5.7.          Merger;
Disposition of Assets. Without the prior written consent of Bank, which consent shall not be unreasonably withheld, Borrower
will not (a) change its capital structure, (b) merge or consolidate with any company, (c) amend or change its Articles
of Incorporation or By-Laws without the Bank’s consent, or (d) sell, transfer or otherwise dispose of all or any substantial
part of its assets, whether now owned or hereafter acquired.

 

5.8.          Transactions
with Affiliates. Without the prior written consent of Bank, which consent shall not be unreasonably withheld, Borrower will
not (a) directly or indirectly issue any guarantee for the benefit of any of its Affiliates, other than guarantees of the
obligations of Entity Guarantors to customers or suppliers in the ordinary course of business not to exceed $500,000 in the aggregate,
(b) directly or indirectly make any loans or advances to or investments in any of its Affiliates other than Entity Guarantor,
(c) enter into any transaction with any of its Affiliates, other than transactions entered into on an arm’s length basis
in the normal course of Borrower’s business, or (d) divert (or permit anyone to divert) any of its business opportunities
to any Affiliate or any other corporate or business entity in which Borrower or its members or members of its Board of Directors
holds a direct or indirect interest, other than Entity Guarantor.

 

5.9.          Government
Regulation. Borrower shall not (a) be or become subject at any time to any law, regulation or list of any government agency
(including, without limitation, the U.S. Office of Foreign Asset Control list) that prohibits or limits Bank from making any advance
or extension of credit to Borrower or from otherwise conducting business with Borrower, or (b) fail to provide documentary
and other evidence of Borrower’s identity as may be requested by Bank at any time to enable Bank to verify Borrower’s
identity or to comply with any applicable law or regulation, including, without limitation, Section 326 of the USA Patriot
Act of 2001, 31 U.S.C. Section 5318.

 

    	 	15	 

     

    

 

5.10 .       Financial
Covenants.

 

(a) Borrower shall not permit the Fixed
Charge Coverage Ratio, tested quarterly and measured on a trailing twelve (12) month basis, to be less than the following each
quarter ending:

 

(i)          1.15
to 1.0 at September 30, 2019;

(ii)         1.25
to 1.0 at December 31, 2019; and each quarter thereafter;

 

(b)  Beginning
March 31, 2020, Borrower shall not permit the Cash Flow Leverage Ratio, tested at the end of each fiscal quarter ending as
follows:

 

(i)          as
of March 31, 2020, to exceed 5.00 to 1.00;

(ii)         as
of June 30, 2020, to exceed 4.50 to 1.00;

(iii)        as
of September 30, 2020, to exceed 4.25 to 1.00;

(iv)        as
of December 31, 2020 and each quarter thereafter, to exceed 4.00 to 1.00.

 

The Financial Covenants set forth in this
Section 5.10 shall be calculated excluding the effects of Borrower’s adoption of Accounting Standards Codification Topic
842, Leases.

 

Section 6.               Events
of Default and Remedies.

 

6.1.          Events
of Default. Any of the following events will be an event of default (“Event of Default”):

 

		(a)	any representation or warranty made by Borrower herein or in any of the Loan Documents is materially
incorrect when made or reaffirmed; provided, however, upon notice from Bank to Borrower of such materially incorrect representation
or warranty, Borrower shall have a thirty (30) day grace period to cause such representation to be true and accurate; or

 

		(b)	Borrower fails to pay within 5 days of when due any principal or interest on any Obligation; or

 

		(c)	Borrower fails to observe or perform any covenant, condition or agreement herein (other than as
provided in Subsection 6.1(b)) above) or in any other Loan Document and fails to cure such default within thirty (30) days of the
occurrence thereof. Notwithstanding the foregoing, no such cure period shall apply to any failure to maintain insurance, or any
breach in any negative covenant set forth in Section 5 hereof; or

 

		(d)	a court enters a decree or order for relief with respect to Borrower in an involuntary case under
any applicable bankruptcy, insolvency or other similar law then in effect, or appoints a receiver, liquidator, assignee, custodian,
trustee, sequestrator (or other similar official) of Borrower or for any substantial part of its respective property, or orders
the wind-up or liquidation of its affairs; or a petition initiating an involuntary case under any such bankruptcy, insolvency or
similar law is filed and is pending for sixty (60) days without dismissal; or

 

    	 	16	 

     

    

 

		(e)	Borrower commences a voluntary case under any applicable bankruptcy, insolvency or other similar
law in effect, or makes any general assignment for the benefit of creditors, or fails generally to pay its debts as such debts
become due, or takes company action in furtherance of any of the foregoing; or

 

		(f)	Borrower defaults under the terms of any Indebtedness or lease involving total payment obligations
of Borrower in excess of $100,000, and such default gives any creditor or lessor the right to accelerate the maturity of any such
indebtedness or lease payments which right is not contested by Borrower or is determined by any court of competent jurisdiction
to be valid; or

 

		(g)	final non-appealable and uninsured judgment of the payment of money in excess of $100,000 is rendered
against Borrower and remains undischarged for sixty (60) days during which execution is not effectively stayed; or

 

		(h)	an Event of Default occurs under any Loan Document; or

 

		(i)	the dissolution or liquidation of Borrower or any Entity Guarantor; or

 

		(j)	the commencement of any foreclosure proceedings, proceedings in aid of execution, attachment actions,
levies against, or the filing by any taxing authority of a lien against any of the Collateral or any property securing the repayment
of any of the Obligations, which, in each case, remains undismissed for thirty (30) days; or

 

		(k)	the loss, theft or substantial damage to a material portion of the Collateral or any property securing
the repayment of the Obligations if the result of such occurrence will likely result in, in Bank’s reasonable judgment, the
failure or inability of Borrower to continue substantially normal operation of its business within thirty (30) days of the date
of such occurrence; or

 

		(l)	(i) the validity or effectiveness of any of the Loan Documents or its transfer, grant, pledge,
mortgage or assignment by the party executing such Loan Document is impaired by the Borrower or any Guarantor; (ii) any Borrower
or Guarantor executing any of the Loan Documents asserts that any of such Loan Documents is not a legal, valid and binding obligation
of the party thereto enforceable in accordance with its terms; or (iii) the security interest or Lien purporting to be created
by any of the Loan Documents, due to any act of the Borrower or any Guarantor, ceases to be a valid, perfected lien subject to
no other liens other than Permitted Liens; or

 

		(m)	(i) a Reportable Event (as defined in ERISA) occurs with respect to any employee benefit plan
maintained by Borrower for its employees and such Reportable Event (as defined in ERISA) is likely to have a material adverse effect
on Borrower; provided that no Event of Default shall occur if the Reportable Event is caused solely by a decrease in employment;
or (ii) a trustee is appointed by a United States District Court to administer any employee benefit plan; or (iii) the
Pension Benefit Guaranty Corporation institutes proceedings to terminate any of Borrower’s employee benefit plans; or

 

    	 	17	 

     

    

 

		(n)	other than Permitted Liens, the filing of any lien or charge against any of the Collateral for
any amount in excess of $100,000, which is not removed to the satisfaction of Bank within a period of sixty (60) days thereafter;
or

 

		(o)	the abandonment by Borrower of all or any material part
of the Collateral.

 

6.2.          Remedies.
If any Default occurs, Bank may cease advancing money hereunder. If any Event of Default occurs, Bank may (i) declare by providing
written notice to Borrower, all Obligations to be immediately due and payable, whereupon such Obligations will immediately become
due and payable, (ii) exercise any and all rights and remedies provided by applicable law and the Loan Documents, (iii) proceed
to realize upon the Collateral or any property securing the Obligations, including, without limitation, causing all or any part
of the Collateral to be transferred or registered in its name or in the name of any other person, firm or corporation, with or
without designation of the capacity of such nominee, all without presentment, demand, protest or notice of any kind, each of which
are hereby expressly waived by Borrower. Borrower shall be liable for any deficiency remaining after disposition of any Collateral,
and waives all valuation and appraisement laws.

 

6.3.          Setoff.
If any Event of Default has occurred, Bank is authorized, without notice to Borrower, to offset and apply to all or any part of
the Obligations all monies, credits and other property of any nature whatsoever of Borrower now or at any time hereafter in the
possession of, in transit to or from, under the control or custody of, or on deposit with (whether held by Borrower individually
or jointly with another party) Bank, including but not limited to certificates of deposit.

 

6.4.          Default
Rate. After the occurrence of an Event of Default, all amounts of principal outstanding as of the date of the occurrence of
such Event of Default will accrue interest at the Default Rate, in Bank’s sole discretion, without notice to Borrower. This
provision does not constitute a waiver of any Events of Default or an agreement by Bank to permit any late payments whatsoever.

 

6.5.          Late
Payment Fee. If any payment of principal is not paid when due (whether at maturity, by acceleration or otherwise after the
expiration of any applicable notice, grace and cure periods), Borrower agrees to pay to Bank a late payment fee equal to five percent
(5%) of the payment amount then due.

 

6.6.          No
Remedy Exclusive. No remedy set forth herein is exclusive of any other available remedy or remedies, but each is cumulative
and in addition to every other remedy available under this Agreement, the Loan Documents or as may be now or hereafter existing
at law, in equity or by statute. Borrower waives any requirement of marshaling of assets which may be secured by any of the Loan
Documents.

 

6.7.          Effect
of Termination. The termination of this Agreement will not affect any rights of either party or any obligation of either party
to the other, arising prior to the effective date of such termination, and the provisions hereof shall continue to be fully operative
until all transactions entered into, rights created or Obligations incurred prior to such termination have been fully disposed
of, concluded or liquidated. The security interest, lien and rights granted to Bank hereunder and under the Loan Documents will
continue in full force and effect, notwithstanding the termination of this Agreement or the fact that no Loans are outstanding
to Borrower, until all of the Obligations, have been paid in full.

 

    	 	18	 

     

    

 

Section 7.               Conditions
Precedent.

 

7.1.          Conditions
to Initial Loans. Bank will have no obligation to make or advance any Loan until Borrower has delivered to Bank at or before
the closing date, in form and substance satisfactory to Bank:

 

(a)          Executed
version of the Term Note #4.

 

(b)          Executed
version of the Term Note #5.

 

(c)          Executed
version of the Capex Loan Note #2.

 

(d)          Executed
version of the Revolving Note.

 

(c)          Executed
version of this Agreement.

 

(d)          A
Certificate of Borrower, together with all attachments thereto.

 

(e)          A
Certificate of Entity Guarantor (Bronco Research), together with all attachments thereto.

 

(f)           A
Certificate of Entity Guarantor (BAS Evanville, Inc.), together with all attachments thereto.

 

(g)          A
Certificate of Entity Guarantor (Seventh Wave Indiana), together with all attachments thereto.

 

(h)          A
Certificate of Entity Guarantor (BASi Gaithersburg), together with all attachments thereto.

 

(i)           A
Guaranty Agreement executed by Bronco Research.

 

(j)           An
Amended and Restated Guaranty executed by BAS Evansville, Inc.

 

(k)          An
Amended and Restated Guaranty executed by Seventh Wave Indiana.

 

(l)           An
Amended and Restated Guaranty executed by BASi Gaithersburg.

 

(m)         An
executed version of the Security Agreement for Bronco Research.

 

(n)          An
executed version of the Amended and Restated Security Agreement for Borrower, together with a Grant of Security Interest in Trademarks
and Grant of Security Interest in Copyrights.

 

    	 	19	 

     

    

 

(o)          An
executed version of the Amended and Restated Security Agreement for BAS Evansville, Inc.

 

(p)          An
executed version of the Amended and Restated Security Agreement for Seventh Wave Indiana.

 

(q)          An
executed version of the Amended and Restated Security Agreement for BASi Gaithersburg.

 

(r)           Deed
of Trust, executed by Bronco Research, related to Premises #3.

 

(s)          Grantor’s
Affidavit, executed by Bronco Research, related to Premises #3.

 

(t)           Fourth
Modification of Mortgage (Premises #1) executed by Borrower.

 

(u)          Second
Modification of Amended and Restated Mortgage (Premises #2), executed by BAS Evansville, Inc.

 

(v)          Sixth
Amended and Restated Environmental Indemnity Agreement executed by Borrower and Entity Guarantors.

 

(w)         Executed
version of the Assignment of Life Insurance ($5,000,000).

 

(x)           Executed
version of the Subordination Agreement executed by Bronco Research, Bank, and Pre-Clinical Research Services, Inc.

 

(y)          Patriot
Act compliance certification executed by Bronco Research.

 

(z)           All
appropriate financing statements (Form UCC-1).

 

(aa)          UCC
searches, insurance certificates, notices or other documents which Bank may require to reflect, perfect or protect Bank’s
first and/or second priority lien, as applicable, in the Collateral and all other property pledged to secure the Obligations and
to fully consummate this transaction.

 

(bb)          All
requisite releases of liens, termination statements and satisfactions necessary to release all liens and encumbrances against the
Collateral and any other property pledged to secure the Loans and all requisite waivers and subordination agreements, in a form
satisfactory to Bank, to be executed and delivered by Borrower’s landlords, lenders, and mortgagees which are necessary to
grant Bank a first lien in the Collateral, including but not limited to all business assets of Borrower and each Entity Guarantor.

 

(cc)          Proof
of insurance with respect to the Borrower, its assets and the Real Estate and in a form reasonably satisfactory to Bank:

 

(dd)          Commercial
general public liability insurance in such an amount and with such deductibles as are customary for similar borrowers;

 

    	 	20	 

     

    

 

(ii)          Flood
Insurance if the Real Estate is located in an area designated as a special flood hazard area by any governmental authority having
jurisdiction over the Real Estate; and

 

(iii)         Such
other insurance coverages as ordinarily insured against by other borrowers with such liabilities or such properties in similar
businesses.

 

All policies
of insurance required to be maintained by Borrower shall be issued by companies reasonably satisfactory to Bank and shall have
coverages and endorsements and be written for such amounts in accordance with the above . All policies of insurance shall (x) name
Bank as mortgagee, lender loss payable or additional insured, as the case may require, and (y) provide that the policies may
not be canceled or modified without thirty days (or, in the case of non-payment of premiums, 10 days) prior written notice to Bank.

 

(ee)        Two
(2) copies of a survey (the “Survey”) or plat for Premises #3, reasonably acceptable to Bank.

 

(ff)          An
ALTA Loan Policy of Title Insurance issued by the Title Company insuring that the Mortgage of Premises #3 will be a prior first
lien upon the fee simple title to the Real Estate, subject to no liens, claims, exceptions or encumbrances except the Permitted
Encumbrances (as defined in the Mortgage) and containing such endorsements as may be reasonably required by Bank based upon its
review of the Title Policy and Survey.

 

(gg)        Opinion
letter from counsel for Borrower and Entity Guarantor in a form reasonably satisfactory to Bank covering customary matters;

 

(hh)        Appraisals
prepared by an appraiser or appraisers satisfactory to Bank and indicating that the fair market value of the Premises #3, collectively,
is not less than Two Million One Hundred Sixty Thousand and No/100 Dollars ($2,160,000.00) for the Premises #3 Building, and not
less than Three Hundred Twenty-Five Thousand and No/100 Dollars ($325,000.00) for the Premises #3 Lot.

 

(ii)          Such
other assignments, certificates, opinions and other documents, instruments and information affecting or relating to Bank's interest
in the Collateral securing the Loan as Bank may reasonably require.

 

Section 8.               Miscellaneous
Provisions.

 

8.1.          Miscellaneous.
This Agreement, the exhibits and the other Loan Documents are the complete agreement of the parties hereto and supersede all previous
understandings relating to the subject matter hereof. This Agreement may be amended only in writing signed by the party against
whom enforcement of the amendment is sought. This Agreement may be executed in counterparts. If any part of this Agreement is held
invalid, illegal or unenforceable, the remainder of this Agreement will not in any way be affected. This Agreement is and is intended
to be a continuing agreement and will remain in full force and effect until the Loans are finally and irrevocably paid in full
and terminated.

 

8.2.          Waiver
by Borrower. Borrower waives notice of non-payment, demand, presentment, protest or notice of protest of any Accounts or other
Collateral, and all other notices (except those notices specifically provided for in this Agreement); consents to any renewals
or extensions of time of payment thereof; and generally waives any and all suretyship defenses and defenses in the nature thereof.

 

    	 	21	 

     

    

 

8.3.          Binding
Effect. This Agreement will be binding upon and inure to the benefit of the respective legal representatives, successors and
assigns of the parties hereto; however, Borrower may not assign or transfer any of its rights or delegate any of its Obligations
under this Agreement or any of the Loan Documents, by operation of law or otherwise. Bank (and any subsequent assignee) may, upon
prior notice to Borrower, transfer and assign any of its rights or delegate any of its duties under this Agreement or may transfer
or assign partial interests or participation in the Loans to other persons. Bank may disclose to all prospective and actual assignees
and participants all financial, business and other information about Borrower which Bank may possess at any time; provided that
any such prospective or actual assignees or participants agree in writing prior to any such disclosure to be bound by the provisions
of Section 8.13 of this Agreement.

 

8.4.          Subsidiaries.
If Borrower has any additional Subsidiaries at any time during the term of this Agreement, the term “Borrower” in each
representation, warranty and covenant herein will mean “Borrower” and each Subsidiary individually and in the aggregate,
and Borrower will cause each Subsidiary to be in compliance therewith.

 

8.5.          Security.
The Obligations are secured as provided in this Agreement, the Security Agreements, the Mortgages, and the Loan Documents and in
each other document or agreement which by its terms secures the repayment or performance of the Obligations.

 

8.6.          Survival.
All representations, warranties, covenants and agreements made by Borrower herein and in the Loan Documents will survive the execution
and delivery of this Agreement, the Loan Documents and the issuance of the Notes.

 

8.7.          Delay
or Omission. No delay or omission on the part of Bank in exercising any right, remedy or power arising from any Event of Default
will impair any such right, remedy or power or any other right remedy or power or be considered a waiver or any right, remedy or
power or any Event of Default nor will the action or omission to act by Bank upon the occurrence of any Event of Default impair
any right, remedy or power arising as a result thereof or affect any subsequent Event of Default of the same or different nature.

 

8.8.          Notices.
Any notices under or pursuant to this Agreement will be deemed duly sent when delivered in hand when deposited in the U.S. mail
postage prepaid, or sent by overnight courier addressed as follows:

 

		To Borrower:	Bioanalytical Systems, Inc.

2701 Kent Avenue

West Lafayette, Indiana
47906

Attention: Chief Financial Officer

 

    	 	22	 

     

    

 

With a copy to (which shall not
constitute notice):

 

Ice Miller LLP

One American Square, 29th Floor

Indianapolis, Indiana 46282

Attention: Stephen J. Hackman, Esq.

 

		To Bank:	First Internet Bank of Indiana

11201 USA Parkway

Fishers, Indiana 46037

Attention: Trina McWilliams

 

With a copy to (which shall not
constitute notice):

 

Krieg DeVault LLP

12800 North Meridian Street, Suite 300

Carmel, Indiana 46032

Attention: Nicole Finelli, Esq.

 

Either party may change
such address by sending written notice of the change to the other party.

 

8.9.          No
Partnership. Nothing contained herein or in any of the Loan Documents is intended to create or will be construed to create
any partnership, joint venture or other relationship between Bank and Borrower other than as expressly set forth herein or therein
and will not create any joint venture, partnership or other relationship.

 

8.10.        Indemnification.
If after receipt of any payment of all or part of the Obligations, Bank is for any reason compelled to surrender such payment to
any person or entity, because such payment is determined to be void or voidable as a preference, impermissible setoff, or diversion
of trust funds, or for any other reason, this Agreement will continue in full force and effect and Borrower will be liable to,
and will indemnify, save and hold Bank, its officers, directors, attorneys, and employees harmless of and from the amount of such
payment surrendered. The provisions of this Section will be and remain effective notwithstanding any contrary action which
may have been taken by Bank in reliance on such payment, and any such contrary action so taken will be without prejudice to Bank’s
rights under this Agreement and will be deemed to have been conditioned upon such payment becoming final, indefeasible and irrevocable.
In addition, Borrower will indemnify, defend, save and hold Bank, its officers, directors, attorneys and employees harmless of,
from and against all claims, demands, liabilities, judgments, losses, damages, costs and expenses, joint or several (including
all accounting fees and attorneys’ fees reasonably incurred), that Bank or any such indemnified party may incur arising out
of this Agreement, any of the Loan Documents or any act taken by Bank hereunder provided such action is either permitted or authorized
under the Loan Documents and/or applicable law except for the illegal activities, willful misconduct or gross negligence of such
indemnified party. The provisions of this Section will survive the termination of this Agreement.

 

    	 	23	 

     

    

 

8.11.        Depository
Account Acknowledgment. Borrower and Bank severally, each for itself, acknowledges and agrees that, except as provided herein
with respect to Borrower’s obligation to maintain depository account(s)  (if any) with Bank, the extension(s) of
credit provided for herein are neither conditioned upon nor have the interest rates and fees therefor been set based upon Borrower’s
agreement to purchase any other product or service from Bank. Further, Borrower and Bank severally, each for itself, acknowledges
and agrees that Bank has not offered these extension(s) of credit or offered to reduce the interest rate(s) or fee(s) therefor
except as provided herein.

 

8.12.        Governing
Law; Jurisdiction. This Agreement, the Notes and the other Loan Documents will be governed by the domestic laws of the State
of Indiana. Borrower agrees that the state and federal courts in Marion County, Indiana, or any other court in which Bank
initiates proceedings have exclusive jurisdiction over all matters arising out of this Agreement, and that service of process in
any such proceeding will be effective if mailed to Borrower at its address described in the Notices section of this Agreement.
BANK AND BORROWER HEREBY WAIVE THE RIGHT TO TRIAL BY JURY OF ANY MATTERS ARISING OUT OF THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED
HEREBY.

 

8.13.        Confidentiality.

 

(a)          Bank
shall keep confidential, in accordance with its customary procedures for handling confidential information and safe and sound lending
practices and consistent with its practices with respect to its own confidential information, any non-public written information
supplied to it by Borrower pursuant to this Agreement; provided, that, nothing contained herein shall limit the disclosure of any
such information: (i) to the extent required by statute, rule, regulation, subpoena or court order, (ii) to bank examiners
and other regulators, auditors and/or accountants, in connection with any litigation to which Bank is a party, or (iii) to
counsel for Bank.

 

(b)          In
the event that Bank receives a request or demand to disclose any confidential information pursuant to any subpoena or court order,
Bank agrees (i) to the extent permitted by applicable law, Bank will promptly notify Borrower of such request so that Borrower
may seek a protective order or other appropriate relief or remedy and (ii) if disclosure of such information is required,
disclose such information and, subject to reimbursement by Borrower of Bank’s expenses, cooperate with Borrower in the reasonable
efforts to obtain an order or other reliable assurance that confidential treatment will be accorded to such portion of the disclosed
information which Borrower so designates.

 

(c)          In
no event shall this Section 8.13 or any other provision of this Agreement be deemed: (i) to apply to or restrict disclosure
of information that has been or is made public by Borrower or any third party or otherwise becomes generally available to the public
other than as a result of a disclosure in violation hereof, (ii) to apply to or restrict disclosure of information that was
or becomes available to Bank on a non-confidential basis from a person other than Borrower or a person Bank has actual knowledge
has provided such information to Bank in violation of a binding agreement regarding the confidentiality of such information with
Borrower or its subsidiaries, and (iii) to require Bank to return any materials furnished by Borrower to Bank. The obligations
of Bank under this Section 8.13 shall supersede and replace the obligations of Bank under any confidentiality letter signed
prior to the date hereof.

 

8.14.        Amendment
and Restatement. This Amended and Restated Credit Agreement completely amends in its entirety that certain Credit Agreement
dated as of June 23, 2017 executed by Bioanalytical Systems, Inc. and Bank. Notwithstanding the foregoing, any collateral
or security interests securing the obligations set forth in the Credit Agreement shall continue to secure the Obligations set forth
in this Amended and Restated Credit Agreement, as the same may be amended, modified, or restated from time to time, until such
time as such collateral or security interest is expressly terminated or released by Bank.

 

[REMAINDER OF PAGE INTENTIONALLY BLANK
 – SIGNATURE PAGE FOLLOWS]

 

    	 	24	 

     

    

 

[SIGNATURE PAGE – CREDIT
AGREEMENT]

 

IN WITNESS WHEREOF,
Borrower and Bank have executed this Agreement by their duly authorized officers as of the date first above written.

 

	 	Bioanalytical Systems, Inc.
	 	 	 
	 	 	 
	 	By:  	/s/ Robert Leasure, Jr.
	 	 	Robert Leasure, Jr., President
	 	 	 
	 	 	 
	 	FIRST INTERNET BANK OF INDIANA
	 	 	 
	 	 	 
	 	By:	/s/ Katrina McWilliams
	 	 	Katrina McWilliams, Vice President

 

     

     

    

 

EXHIBITS

TO

CREDIT AGREEMENT

BETWEEN

Bioanalytical Systems, Inc.

AND

FIRST INTERNET BANK OF INDIANA

 

	Exhibit 1	-	Definitions
	Exhibit 2.1	-	Revolving Note
	Exhibit 2.2	-	Term Note
	Exhibit 2.3	-	Term Note #2
	Exhibit 2.7	-	Term Note #3
	Exhibit 2.8	-	Capex Note
	Exhibit 2.9	-	Term Note #4
	Exhibit 2.10	-	Term Note #5
	Exhibit 2.11	-	Capex Note #2
	Exhibit 3.3	-	Litigation Disclosure
	Exhibit 3.6	-	Laws and Taxes Disclosure
	Exhibit 3.8	-	Permitted Liens
	Exhibit 3.10	-	Environmental Disclosure

 

     

     

    

 

EXHIBIT 1

 

DEFINITIONS

 

		·	“Account Debtor” means the party which is obligated on or under any Account.

 

		·	“Adjusted EBITDA” means for the applicable Test Period, the sum of in total for Bioanalytical
Systems, Inc. and its Consolidated Subsidiaries (without duplication): (a) EBITDA; plus to the extent included in the
determination of EBITDA of for the applicable Test Period (b) non-cash losses during the applicable Test Period; plus (c) Approved
Transaction Costs; plus (d) Run-rate Cost Savings & Synergies; plus, (e) non-cash stock compensation expense
during the applicable Test Period; plus (f) Approved Non-Recurring Expenses; plus (g) such additional add-backs during
the applicable Test Period, if any, permitted by Bank in its sole discretion; and minus to the extent included in the determination
of EBITDA for the applicable Test Period, any (i) extraordinary or non-recurring income or gains and (ii) any gain arising
from the sale of capital assets.

 

		·	“Advance” means any disbursement of proceeds of the Construction Loan, Equipment Loan,
Capex Loan, or Capex Loan #2, as applicable.

 

		·	“Affiliates” shall mean any entity which
is 10% owned by Borrower, or Entity Guarantor.

 

		·	“Approved Non-Recurring Expenses” means for the applicable Test Period: (a) up
to $390,000 for rent expense paid on its St. Louis location upon the purchase date of such St. Louis location; and (b) up
to $250,000 for rent expense paid on its Fort Collins location upon the purchase date of such Fort Collins location. The non-recurring
expense shall be calculated on a Pro Forma basis as though it had been realized on the first day of the applicable test period
for which Adjusted EBITDA is being determined, net of the amount of actual benefits realized during such period as approved by
Bank.

 

		·	“Approved Transaction Costs” means for each applicable Test Period: (a) up to
$520,000 of expense incurred during the Test Period related to the acquisition of Smithers Avanza Toxicology Services LLC, as approved
by Bank through June 30, 2020, and (b) up to $450,000 of expense incurred during the Test Period related to the acquisition
of PreClinical Research Services, Inc. as approved by Bank through September 30, 2020.

 

		·	“Architect” means any architect engaged for
the Project.

 

		·	“BASi Gaithersburg” means BASi Gaithersburg
LLC, an Indiana limited liability company.

 

		·	“Borrowing Base” means an amount equal to 80% of the Eligible Accounts.

 

		·	“Bronco Research” means Bronco Research Services, LLC.

 

		·	“Building” means the buildings and other improvements to be constructed on Premises
#2 as part of the Project.

 

    	 	1-1	 

     

    

 

		·	“Capital Expenditures” for the applicable Test Period are defined as expenditures made
and capitalized during the applicable Test Period by Bioanalytical Systems, Inc. and its Consolidated Subsidiaries for property,
plant, equipment, and other fixed assets (including any such expenditures by way of acquisition or by way of incurrence or assumption
of Debt or other obligations, to the extent reflected as plant, property, equipment or other fixed assets), research and development
or other long-term assets; provided that expenses made for research and development are later capitalized pursuant to a change
in accounting treatment shall be excluded from the calculation, plus (i) deposits made in the applicable Test Period in connection
with property, plant, and equipment; less deposits of a prior period included in calculation above, less (ii) net cash proceeds
of asset dispositions received during the applicable Test Period which are permitted to reinvest pursuant to the Credit Agreement
and are included in expenditures made and capitalized above.

 

		·	“Capex Loan” has the meaning assigned to that term in Section 2.8 of the Agreement.

 

		·	“Capex Loan Note” has the meaning assigned to that term in Section 2.8 of the
Agreement.

 

		·	“Capex Loan #2” has the meaning assigned to that term in Section 2.11 of the Agreement.

 

		·	“Capex Loan Note #2” has the meaning assigned to that term in Section 2.11 of
the Agreement.

 

“Cash Flow Leverage Ratio”
means for the applicable Test Period the ratio resulting from dividing : (i) an amount equal to (a) Total Funded Debt
as of the last day of such applicable test period, minus (b) unrestricted cash up to $2,500.000 by (ii) Adjusted EBITDA.

 

		·	“Collateral” shall mean the “collateral” as defined in the Security Agreement,
together with the Real Estate.

 

		·	“Consolidated Subsidiaries” means the Entity Guarantors and any other subsidiaries
of Borrower consolidated for financial reporting purposes.

 

		·	“Construction Amount” means the means the amount, in the aggregate, incurred from time
to time by the Borrower in connection with the construction of the Project, including, without limitation, amounts payable to suppliers,
materialmen, laborers, engineers and the Contractor.

 

		·	“Construction Loan” has the meaning assigned to that term in Section 2.4 of the
Agreement.

 

		·	“Construction Loan Note” has the meaning assigned to that term in Section 2.4
of the Agreement.

 

		·	“Construction Loan Maturity Date” has the meaning assigned to that term in Section 2.4
of the Agreement.

 

		·	“Contractor” means the general contractor engaged for the Project.

 

		·	“Default” or “default” means a default (without regard to grace or cure
periods) under any contract or agreement that with the passage of time could mature into an Event of Default.

 

		·	“Default Rate” means four percent (4%) in excess of the interest rate otherwise in
effect under amounts outstanding under the Notes. In no event will the interest rate accruing under such Notes be increased to
be in excess of the maximum interest rate permitted by applicable state or federal usury laws then in effect.

 

    	 	1-2	 

     

    

 

“EBITDA” means for
the applicable Test Period the sum in total for Bioanalytical Systems, Inc. and its Consolidated Subsidiaries (without duplication)
of: (i) income before income taxes, plus (ii) interest expense, plus (iii) amortization expense, plus (iv) depreciation
expense, in each case for the applicable Test Period, calculated on a consolidated basis in accordance with GAAP.

 

		·	“Eligible Account” means an Account (as defined in the Uniform Commercial Code) owing
to the Borrower or any Entity Guarantor (exclusive of any Account owing to an Affiliate that is not an Entity Guarantor) from an
Account Debtor which meets each of the following requirements:

 

(a)            it
arises from the sale or lease of goods or the rendering of services which have been earned or billed in accordance with signed
contracts by the Borrower or any Entity Guarantor; and if it arises from the sale or lease of goods, (i) such goods comply
with such Account Debtor’s specifications (if any) and have been delivered to such Account Debtor and (ii) the Borrower
or any Entity Guarantor has possession of, or if requested by the Bank has delivered to the Bank, delivery receipts evidencing
such delivery;

 

(b)            it
(i) is subject to a perfected, first priority Lien in favor of the Bank and (ii) is not subject to any other assignment,
claim or Lien;

 

(c)            it
is a valid, legally enforceable and unconditional obligation of the Account Debtor with respect thereto, and is not subject to
the fulfillment of any condition whatsoever or any counterclaim, setoff, reduction (collectively, “contra accounts”)
or any credit, allowance, discount, rebate or adjustment by the Account Debtor with respect thereto, or to any claim by such Account
Debtor denying liability thereunder in whole or in part and the Account Debtor has not refused to accept and/or has not returned
or offered to return any of the goods or services which are the subject of such Account;

 

(d)           there
is no bankruptcy, insolvency or liquidation proceeding pending by or against the Account Debtor with respect thereto;

 

(e)            the
Account Debtor with respect thereto is a resident or citizen of, and is located within, the United States, unless the sale of goods
or services giving rise to such Account is on letter of credit, banker’s acceptance or other credit support terms reasonably
satisfactory to the Bank;

 

(f)            it
is not an Account arising from a “sale on approval,” “sale or return,” “consignment” or “bill
and hold” or subject to any other repurchase or return agreement;

 

(g)           it
is not an Account with respect to which possession and/or control of the goods sold giving rise thereto is held, maintained or
retained by the Borrower or any Entity Guarantor (or by any agent or custodian of the Borrower or any Entity Guarantor) for the
account of or subject to further and/or future direction from the Account Debtor with respect thereto;

 

(h)           it
arises in the ordinary course of business of the Borrower or any Entity Guarantor;

 

(i)             if
the Account Debtor is the United States or any department, agency or instrumentality thereof, the Borrower or any Entity Guarantor
has assigned its right to payment of such Account to the Bank pursuant to the Assignment of Claims Act of 1940, and evidence (satisfactory
to the Bank) of such assignment has been delivered to the Bank;

 

    	 	1-3	 

     

    

 

(j)             if
the Borrower or any Entity Guarantor maintains a credit limit for an Account Debtor, the aggregate dollar amount of Accounts due
from such Account Debtor, including such Account, does not exceed such credit limit;

 

(k)            if
the Account is evidenced by chattel paper or an instrument, the originals of such chattel paper or instrument shall have been endorsed
and/or assigned and delivered to the Bank or, in the case of electronic chattel paper, shall be in the control of the Bank, in
each case in a manner satisfactory to the Bank;

 

(l)            such
Account is evidenced by an invoice delivered to the related Account Debtor and is not more than (i) ninety (90) days past
the original invoice date thereof, according to the original terms of sale;

 

(m)            it
is not an Account with respect to an Account Debtor that is located in any jurisdiction which has adopted a statute or other requirement
with respect to which any Person that obtains business from within such jurisdiction must file a notice of business activities
report or make any other required filings in a timely manner in order to enforce its claims in such jurisdiction’s courts
unless (i) such notice of business activities report has been duly and timely filed or the Borrower or any Entity Guarantor
is exempt from filing such report and has provided the Bank with satisfactory evidence of such exemption or (ii) the failure
to make such filings may be cured retroactively by the Borrower or any Entity Guarantor for a nominal fee;

 

(n)            the
Account Debtor with respect thereto is not an Affiliate of the Borrower or any Entity Guarantor; and

 

(o)            it
is not owed by an Account Debtor with respect to which 15% or more of the aggregate amount of outstanding Accounts owed at such
time by such Account Debtor is classified as ineligible under clause (l) of this definition.

 

An Account which is at any time
an Eligible Account, but which subsequently fails to meet any of the foregoing requirements, shall forthwith cease to be an Eligible
Account. Further, with respect to any Account, if the Bank at any time hereafter determines in its reasonable discretion that the
prospect of payment or performance by the Account Debtor with respect thereto is materially impaired for any reason whatsoever,
such Account after written notice of such determination is given to the Borrower shall cease to be an Eligible Account.

 

		·	“Entity Guarantors” means BAS Evansville, Inc., Seventh Wave Indiana, BASi Gaithersburg
and Bronco Research.

 

		·	“Environmental Laws” means all federal, state, local and foreign laws relating to pollution
or protection of the environment, including laws relating to emissions, discharges, releases or threatened releases of pollutants,
contaminants, chemicals, or industrial toxic or hazardous substances or wastes into the environment (including without limitation
ambient air, surface water, ground water or land), or otherwise relating to the manufacture, processing, distribution, use, treatment,
storage, disposal, transport or handling of pollutants, contaminants, chemicals or industrial, toxic or hazardous substances or
wastes, and any and all regulations, codes, plans, orders, decrees, judgments, injunctions, notices or demand letters issued, entered
promulgated or approved thereunder.

 

		·	“Environmental Reports” has the  meaning set forth on Exhibit 3.10.

 

		·	“Equipment Loan” has the meaning assigned to that term in Section 2.5 of the Agreement.

 

		·	“Equipment Loan Note” has the meaning assigned to that term in Section 2.5 of
the Agreement.

 

    	 	1-4	 

     

    

 

		·	“Equipment Loan Maturity Date” has the meaning assigned to that term in Section 2.5
of the Agreement.

 

		·	“ERISA” means the Federal Employee Retirement Income Security Act of 1974.

 

		·	“Event(s) of Default” will have the meaning set forth in Section 6.1 of the
Agreement.

 

		·	“Facility” will have the meaning set forth in Section 2.1 of the Agreement.

 

		·	“Fixed Charge Coverage Ratio” means for the
applicable Test Period, the ratio resulting from dividing (i) Adjusted EBITDA minus (a) Unfunded Capital Expenditures
(excluding those unfunded capital expenditures related to the Evansville building expansion costs of up to $400,000 incurred during
the fiscal quarter ending September 30, 2019, as approved by Bank), minus (b) the aggregate amount of cash payments
of income taxes for such Test Period by (ii) Fixed Charges for such Test Period.

 

“Fixed Charges” means
in accordance with GAAP for the applicable Test Period the sum in total for Bioanalytical Systems, Inc. and its Consolidated
Subsidiaries (without duplication) of: (a) the aggregate cash payments of interest made for such period, including interest
paid on the Obligations, including subordinated debt, the interest portion of all payments in respect of capital lease obligations,
and any other cash payments of interest on any other Indebtedness for such period; plus (b) the aggregate principal amount
of Indebtedness which was paid during such applicable test period, including under the Obligations and Subordinated Debt; and plus
(c) the principal portion of the aggregate amount of payments in respect of capital lease obligations.

 

		·	“GAAP” means generally accepted accounting principles as in effect from time to time.

 

		·	“Guarantors” means the Entity Guarantors and any additional guarantor added from time
to time, collectively.

 

		·	“Indebtedness” means (a) all items (except items of capital surplus, of general
contingency reserves or of retained earnings, deferred income taxes, and amount attributable to minority interests, if any) which
in accordance with GAAP would be included in determining total liabilities on a consolidated basis as shown on the liability side
of a balance sheet as at the date as of which Indebtedness is to be determined, (b) all indebtedness secured by any mortgage,
pledge, lien or conditional sale or other title retention agreement to which any property or asset owned or held is subject, whether
or not the indebtedness secured thereby will have been assumed (excluding non-capitalized leases which may amount to title retention
agreements but including capitalized leases), and (c) all indebtedness of others which Borrower or any Subsidiary or any Affiliate
has directly or indirectly guaranteed, endorsed (otherwise than for collection or deposit in the ordinary course of business),
discounted or sold with recourse or agreed (contingently or otherwise) to purchase or repurchase or otherwise acquire, or in respect
of which Borrower or any Subsidiary has agreed to apply or advance funds (whether by way of loan, stock purchase, capital contribution
or otherwise) or otherwise to become directly or indirectly liable.

 

		·	“Initial Closing” means the date of the first Advance of the Construction Loan.

 

    	 	1-5	 

     

    

 

		·	“Inspecting Architect” means such architect, architectural firm or project inspector
as the Bank may designate from time to time.

 

		·	“knowledge” means to the actual knowledge of any of the executive officers of Borrower
or Entity Guarantor, as the context requires.

 

		·	“Lien” means any security interest, mortgage, pledge, assignment, lien or other encumbrance
of any kind, including interests of vendors or lessors under conditional sale contracts and capitalized leases.

 

		·	“Loan Documents” means this Agreement, the Notes, the Security Agreement, the Mortgage,
and every other document or agreement executed by any party evidencing, guarantying or securing any of the Obligations; and “Loan
Document” means any one of the Loan Documents.

 

		·	“Loans” means the Term Loan, Term Loan #2, Term Loan #3, Capex Line of Credit, Construction
Loan, Equipment Loan, and the Revolving Loans.

 

		·	“Maximum Amount” means the maximum amount available under the Construction Loan, which
is the lesser of (a) Four Million Four Hundred Forty-Five Thousand and No/100 Dollars ($4,445,000.00), and (b) eighty-five
percent (85%) of the Project’s “as complete” appraised value as determined by a state licensed certified general
appraiser engaged by Bank (and whose value determination is concurred with by Bank’s designated review appraiser).

 

		·	“Mortgage(s)” means individually or collectively as the context requires, (i) the
Mortgage, Security Agreement, Assignment of Rents and Leases and Fixture Filing, executed by Borrower, creating a first lien on
Premises #1, securing the Term Loan, (ii) the Mortgage, Security Agreement, Assignment of Rents and Leases and Fixture Filing,
executed by BAS Evansville, Inc., creating a first lien on Premises #2, securing the Term Loan, (iii) the Mortgage, Security
Agreement, Assignment of Rents and Leases and Fixture Filing, executed by Borrower, creating a second lien on Premises #1, securing
the Facility, and (iv) the Mortgage, Security Agreement, Assignment of Rents and Leases and Fixture Filing, executed by BAS
Evansville, Inc., creating a second lien on Premises #2, securing the Facility; and (v) the Deed of Trust, executed by
Bronco Research, creating a first lien on Premises #3, securing Term Loan #5.

 

		·	“Notes” means the Term Note, Term Note #2, Term Note #3, Term Note #4, Term Note #5,
Construction Loan Note, Equipment Loan Note, Capex Loan Note, Capex Loan Note #2, and Revolving Note, together with any renewals,
amendments, restatements and extensions thereof.

 

		·	“Obligations” means all loans, advances, indebtedness, liabilities and obligations
of Bioanalytical Systems, Inc. and its Consolidated Subsidiaries (without duplication)owed to Bank and/or the affiliates of
Bank of every kind and description whether now existing or hereafter arising, and whether direct or indirect, primary or as guarantor
or surety, absolute or contingent, liquidated or unliquidated, matured or unmatured, whether or not secured by additional collateral,
in each case arising under this Agreement, the Notes and the other Loan Documents, including without limitation all obligations
to perform or forbear from performing acts and all reasonable expenses and reasonable attorneys’ fees incurred by Bank and
any affiliate of Bank under this Agreement or any other document or instrument related to any of the foregoing.

 

    	 	1-6	 

     

    

 

		·	“Permitted Liens” has the meaning assigned thereto as set forth in Section 3.8
of the Agreement.

 

		·	“Person” means any individual, corporation, firm, enterprise, partnership, trust, incorporated
or unincorporated association, joint venture, joint stock company, limited liability company or other entity of any kind, or any
government or political subdivision or any agency, department or instrumentality thereof.

 

		·	“Premises #1” means the real estate and improvements located at 2701 Kent Avenue, West
Lafayette, Indiana, owned by Borrower, and more particularly described in the Mortgage executed by Borrower in favor of Bank.

 

		·	“Premises #2” means the real estate and improvements located at 10424 Middle Mount
Vernon Road, Evansville, Indiana, owned by BAS Evansville, Inc., and more particularly described in the Mortgage executed
by BAS Evansville, Inc. in favor of Bank.

 

		·	“Premises #3” means the real estate and improvements located at 1512 Webster Court,
Fort Collins, Colorado, consisting of a building (“Premises #3 Building”) and a vacant lot (“Premises #3 Lot”),
owned by Bronco Research, and more particularly described in the Deed of Trust executed by Bronco Research in favor of Bank.

 

		·	“Project” has the meaning assigned to that term in Section 2.4 of the Agreement.

 

		·	“Real Estate” means individually or collectively as the context requires, Premises
#1, Premises #2, and Premises #3.

 

		·	“Revolving Loans” has the meaning assigned to that term in Section 2.1 of the
Agreement.

 

		·	“Revolving Note” has the meaning assigned to that term in Section 2.1 of the Agreement.

 

		·	“Run-rate Cost-Savings & Synergies” means the
amount of "run rate" cost savings, operating expense reductions and synergies related to the acquisition of certain
assets of Smithers Avanza Toxicology Services LLC projected by the Borrower in good faith to result
from actions taken or expected to be taken within 12 months after the closing date of such acquisition.  The "run rate"
cost savings, operating expense reductions and synergies shall be:

 

(a)            calculated
on a pro forma basis as though such "run rate" cost savings, operating expense reductions and synergies had been realized
on the first day of the period for which consolidated EBITDA is being determined, net of the amount of actual benefits realized
during such period.

 

(b)            reasonably
identifiable and factually supportable (in the good faith determination of the Borrower); and

 

(c)            in
any Test Period equal to the lesser of $560,000 or 15% of consolidated trailing 12 month period EBITDA, calculated before giving
effect thereto, for such Test Period determined on a pro forma basis.

 

    	 	1-7	 

     

    

 

		·	“Security Agreement” means, individually or collectively as the context requires, (i) the
Amended and Restated Security Agreement and Perfection Certificate dated as of the date hereof between Borrower and Bank, securing
the Obligations, (ii) the Amended and Restated Security Agreement and Perfection Certificate dated as of the date hereof between
Bank and BAS Evansville, Inc., securing its Guaranty of the Obligations, (iii) the Amended and Restated Security Agreement
and Perfection Certificate dated as of the date hereof between Bank and Seventh Wave Indiana, securing its Guaranty of the Obligations,
(iv) Amended and Restated Security Agreement and Perfection Certificate dated as of the date hereof between Bank and BASi
Gaithersburg, securing its Guaranty of the Obligations, (v) the Security Agreement and Perfection Certificate dated as of
the date hereof between Bank and Bronco Research securing its Guaranty of the Obligations, and (vi) the Amended and Restated
Grant of Security Interest in Trademarks dated as of the date hereof executed by Borrower, securing the Obligations, and (vii) the
Amended and Restated Grant of Security Interest in Copyrights dated as of the date hereof executed by Borrower, securing the Obligations.

 

		·	“Seventh Wave Indiana” means Seventh Wave Laboratories LLC, an Indiana limited liability
company, f/k/a Cardinal Laboratories LLC.

 

		·	“Site Improvements” means all improvements and appurtenances to Premises #2 and the
Building hereafter constructed as part of the Project.

 

		·	“Subordinated Debt” means any Indebtedness of Borrower that is subordinated to the
full, final and irrevocable payment of the Obligations in form and substance acceptable to Bank.

 

		·	“Subsidiary” means any corporation of which Borrower directly or indirectly owns or
controls at the time outstanding stock having under ordinary circumstances (not depending on the happening of a contingency) voting
power to elect a majority of the board of directors of said corporation.

 

		·	“Term Loan” has the meaning assigned to that term in Section 2.2 of the Agreement.

 

		·	“Term Note” has the meaning assigned to that term in Section 2.2 of the Agreement.

 

		·	“Term Loan #2” has the meaning assigned to that term in Section 2.3 of the Agreement.

 

		·	“Term Note #2” has the meaning assigned to that term in Section 2.3 of the Agreement.

 

		·	“Term Loan #3” has the meaning assigned to that term in Section 2.7 of the Agreement.

 

		·	“Term Loan Note #3” has the meaning assigned to that term in Section 2.7 of the
Agreement

 

		·	“Term Loan #4” has the meaning assigned to that term in Section 2.9 of the Agreement.

 

		·	“Term Note #4” has the meaning assigned to that term in Section 2.9 of the Agreement.

 

		·	“Term Loan #5” has the meaning assigned to that term in Section 2.10 of the Agreement.

 

		·	“Term Note #5” has the meaning assigned to that term in Section 2.10 of the Agreement.

 

		·	“Term-Out Date” means March 28, 2020.

 

		·	“Test Period” means each 12 month period ending at the end of each fiscal quarter.
The first Test Period shall be the Test Period ending on December 31, 2019.

 

    	 	1-8	 

     

    

 

		·	“Title Company” means First American Title Insurance Company (related to Premises #1
and Premisese #2) or Land Title Guarantee Company (related to Premises #3), as applicable.

 

		·	“Total Funded Debt” means for the applicable Test Period, the sum in total for Bioanalytical
Systems, Inc. and its Consolidated Subsidiaries (without duplication) the aggregate principal amount of indebtedness as of
the last day of such applicable test period, determined in accordance with GAAP, consisting of: (a) indebtedness for borrowed
money, (b) unreimbursed obligations in respect of drawn letters of credit, (c) obligations in respect of capitalized
leases, (d) obligations in respect of purchase money debt, and (e) debt obligations evidenced by bonds, debentures, promissory
notes, loan agreements or similar instruments (including subordinated debt).

 

		·	“Transaction Costs” means all transaction fees, charges, and other amounts related
to the Transactions and any Permitted Acquisitions (including, without limitation, any financing fees, merger and acquisition fees,
legal fees and expenses, due diligence fees or any other fees and expenses in connection therewith), in each case to the extent
paid within six (6) months of the closing of the Facility or such Permitted Acquisition, as applicable, and approved by the
Bank in its reasonable discretion.

 

“Unfunded Capital Expenditures”
shall equal the sum of Capital Expenditures excluding funds borrowed under the Construction Loan, Equipment Loan, Capex Loan, Capex
Loan #2, or for certain Capital Expenditures greater than $200,000 for single equipment purchases as approved by Bank. For purposes
of calculating Unfunded Capital Expenditures, Capital Expenditures will be derived from the Statement of Cash Flows of the Company
and its Subsidiaries for such applicable Test Period.

 

“Unrestricted Cash”
means the sum in total for Bioanalytical Systems, Inc. and its Consolidated Subsidiaries (without duplication) cash or cash
equivalents that would not appear as “restricted” on a consolidated balance sheet of Bioanalytical Systems, Inc
as of the last day of such applicable test period.

 

    	 	1-9	 

     

    

 

EXHIBIT 2.1B

 

Form of Revolving Note

 

     

     

    

 

EXHIBIT 2.2

 

Form of Term Note

 

     

     

    

 

EXHIBIT 2.3

 

Form of Term Note #2

 

     

     

    

 

EXHIBIT 2.7

 

Form of Term Note #3

 

     

     

    

 

EXHIBIT 2.8

 

Form of Capex Note

 

     

     

    

 

EXHIBIT 2.9

 

Form of Term Note #4

 

     

     

    

 

EXHIBIT 2.10

 

Form of Term Note #5

 

     

     

    

 

EXHIBIT 2.11

 

Form of Capex Note #2

 

     

     

    

 

EXHIBIT 3.3

 

Litigation Disclosure

 

None

 

     

     

    

 

EXHIBIT 3.6

 

Laws and Taxes Disclosure

 

None

 

     

     

    

 

EXHIBIT 3.8

 

Permitted Liens

 

None

 

    	 	20	 

     

    

 

EXHIBIT 3.10

 

Environmental Disclosure

 

Any disclosure or recognized environmental condition set forth
in:

 

Phase I Environmental Site Assessment of Bioanalytical Systems, Inc.
dated March 6, 2015;

 

Limited Microbial Evaluation Report for Bioanalytical Systems, Inc.,
dated March 5, 2015;

 

Asbestos Pre-Renovation Report for Bioanalytical Systems, Inc.,
dated March 3, 2015;

 

Report 2041 Prepared for Site Location Bioanalytical Systems, Inc.,
2700 Kent Avenue, West Lafayette, Indiana, by PHASE I Environmental Engineering, dated October 11, 2002; and

 

Report 2032 Prepared for Site Location Bioanalytical Systems, Inc.,
1024 Middle Mount Vernon Road, Mount Vernon, Indiana, by PHASE I Environmental Engineering, dated October 11, 2002;

 

(collectively, the “Environmental Reports”).

 

    	 	21

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