Document:

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                                                                   Exhibit 10.18

                                PROMISSORY NOTE

$13,000,000.00                                                 December __, 2005
                                                           Santa Ana, California

     1. AGREEMENT TO PAY. FOR VALUE RECEIVED, NNN Executive Center, LLC, a
Delaware limited liability company ("NNN BORROWER"), and the parties listed on
EXHIBIT A attached hereto (collectively, "ADDITIONAL BORROWERS") (NNN Borrower
and Additional Borrowers are hereinafter individually and collectively referred
to as "BORROWER", as the context may require, provided, however, that the
context shall always be one which affords Lender the broadest possible rights
and remedies under the Loan Documents and which permits Lender, in its
discretion, to enforce the obligations and liabilities hereunder against one or
more of the entities comprising Borrower), hereby promise to pay to the order of
LASALLE BANK NATIONAL ASSOCIATION, a national banking association, its
successors and assigns ("LENDER"), the principal sum of Thirteen Million and
No/100 Dollars ($13,000,000.00) ("LOAN"), or so much as may be now or hereafter
disbursed by Lender to Borrower at the place and in the manner hereinafter
provided, together with interest thereon at the rate or rates described below
(the "INTEREST RATE"), and any and ALL other amounts which may be due and
payable hereunder from time to time.

     2. INTEREST RATE. The "INTEREST RATE" applicable to this Note shall mean
whichever of the Loan Rate, LIBOR Rate and Applicable Margin or Default Rate
are in effect from time to time.

          2.1 INTEREST PRIOR TO DEFAULT.

               (a) Unless an optional interest rate under Section 2.1(b) below
          is in effect, as described below, Interest shall accrue on the
          outstanding principal balance of this Note from the date hereof
          through January 1, 2008 ("MATURITY DATE") at an annual rate equal to
          the Prime Rate plus one-half percent (0.5%) ("LOAN RATE"). Changes in
          the rate of interest to be charged hereunder based on the Prime Rate
          shall take effect immediately upon the occurrence of any change in the
          Prime Rate.

               "PRIME RATE" means the rate of interest most recently announced
          by Lender at Chicago, Illinois as its prime or base rate. A
          certificate made by an officer of Lender stating the Prime Rate in
          effect on any given day, for the purposes hereof, shall be conclusive
          evidence of the Prime Rate in effect on such day. The "Prime Rate" is
          a base reference rate of interest adopted by Lender as a general
          benchmark from which Lender determines the floating interest rates
          chargeable on various loans to borrowers with varying degrees of
          creditworthiness and Borrower acknowledges and agrees that Lender has
          made no representations whatsoever that the "Prime Rate" is the
          interest rate actually offered by Lender to borrowers of any
          particular creditworthiness.

               (b) OPTIONAL INTEREST RATES. Borrower may elect the optional
          interest rate(s) described below in Section 2.1(c) for the Loan during
          the interest periods described below.

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               (c) LIB0R RATE. Subject to the terms hereinafter set forth,
          Borrower may elect to have all of the outstanding principal balance of
          this Note bear interest at an annual rate equal to the LIBOR Rate plus
          two and 25/100 percent (2.25%) (the "APPLICABLE MARGIN"): The interest
          period during which the LIBOR Rate will be in effect will be
          successive one, two or three month periods, or such other period as
          may be agreed to by Lender and Borrower. Borrower shall irrevocably
          request, in writing, the LIBOR Rate Contract Period (each such period
          shall be deemed a "LIBOR RATE CONTRACT PERIOD") no later than 2:00
          p.m. Chicago time on the day on which the London Inter-Bank Offered
          Rate will be set, as specified below. If the first election for a
          LIBOR Rate is made such that the interest period shall commence on any
          day other than the first Business Day of a month, then the initial
          interest period shall end on the last day of the month in which such
          election is made and the portion for such partial month shall bear
          interest at a short term LIBOR Rate, plus the Applicable Margin. In
          any event the first day of the interest period must be a day on which
          Lender is open for business in Chicago, Illinois (a "BUSINESS DAY")
          and banks are open in London, England and dealing in offshore United
          States dollars. The last day of the interest period and the actual
          number of days during the interest period will be determined by Lender
          using the practices of the London Inter-Bank market. Each election by
          Borrower of the LIBOR Rate (and Applicable Margin) to apply to the
          principal balance of this Note for a LIBOR Rate Contract period shall
          be referred to herein as a "LIBOR CONTRACT". No more than five (5)
          LIBOR Contracts may be outstanding at any one time.

          "LIBOR RATE" means the interest rate deteramined by the following
          formula:

                            London Inter-Bank Offered Rate
                    LIBOR = ------------------------------
                              (1.00 - Reserve Percentage)

               Where,

                         (1) "LONDON INTER-BANK OFFERED RATE" means the rate per
                    annum equal to the offered rate for deposits in U.S. dollars
                    for the applicable interest period and for amounts
                    comparable to the LIBOR Rate published by Bloomberg's
                    Financial Markets Commodities News at approximately 8:00
                    a.m. Chicago time two (2) Business Days before the
                    commencement of the interest period (or if not so published,
                    Lender, in its sole discretion, shall designate another
                    daily financial or governmental publication of national
                    circulation to determine such rate); provided, however, that
                    after the first election of an interest period with respect
                    to the Libor Rate Contract Period, the London Inter-Bank
                    Offered Rate shall be determined at approximately 8:00 a.m.
                    Chicago time on the first day of the month for each interest
                    period thereafter with respect to such Libor Rate Contract
                    Period.

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                         (2) "RESERVE PERCENTAGE" means the total of the maximum
                    reserve percentages for determining the reserves to be
                    maintained by member banks of the Federal Reserve System for
                    Eurocurrency Liabilities, as defined in Federal Reserve
                    Board Regulation D, rounded upward to the nearest 1/100 of
                    one percent. The percentage will be expressed as a decimal,
                    and will include, but not be limited to, marginal,
                    emergency, supplemental, special, and other reserve
                    percentages.

                    (i) Each LIBOR Rate Contract Period elected by Borrower
               shall automatically renew for the same interest period at the
               then current LIBOR Rate plus the Applicable Margin unless
               Borrower shall otherwise irrevocably request, in writing, a
               different interest period or conversion of all the LIBOR Rate to
               the Loan Rate, no later than 2:00 p.m. Chicago time on the second
               (2nd) Business Day before the expiration of the existing
               interest period. Borrower may not elect a LIBOR Rate with respect
               to any principal amount which is scheduled to be repaid before
               the last day of the applicable interest period, and any such
               amounts shall bear interest at the Loan Rate, until repaid.

                    (ii) Lender is not obligated to accept a deposit in the
               inter-bank market in order to charge interest at the LIBOR Rate,
               once Borrower elects such rate.

                    (iii) Each prepayment of the Loan while a LIBOR Rate is in
               effect, whether voluntary, involuntary, by reason of acceleration
               or otherwise, will be accompanied by the amount of accrued
               interest on the amount prepaid and any and all costs, expenses,
               penalties and charges incurred by Lender as a result of the early
               termination or breakage of a LIBOR Rate Contract.

                    (iv) Lender will have no obligation to accept an election
               for a LIBOR Rate if any of the following described events has
               occurred and is continuing:

                         (1) Dollar deposits in the principal amount and for
                    periods equal to the interest period, of a LIBOR Rate
                    Contract are not available in the London Inter-Bank Market;
                    or

                         (2) maintenance of a LIBOR Rate Contract would violate
                    any applicable law, rule, regulation or directive, whether
                    or not having the force of law; or

                         (3) the LIBOR Rate does not accurately reflect the cost
                    of a LIBOR Rate Contract; or

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                         (4) an Event of Default has occurred and is continuing
                    or any event or circumstance exists which, with the giving
                    of notice or passage of time, would constitute an Event of
                    Default.

                    (v) In addition, Borrower shall be responsible for paying
               any costs ("ADDITIONAL COSTS") actually incurred by Lender as a
               direct result of any change in Lender's cost of complying with
               any law, rule, regulation or other requirement imposed,
               interpreted or enforced by any federal, state or other
               governmental or monetary authority which is applicable to assets
               held by or deposits or accounts with or credits extended by
               Lender and which causes Lender to incur costs or increases the
               effective cost to Lender of lending to Borrower at the LIBOR Rate
               or decreases the effective spread or yield of two and 25/100ths
               percent (2.25%) per annum above the LIBOR Rate which would be
               made by Lender on a LIBOR Rate Portion.

          2.2 INTEREST AFTER DEFAULT. From and after the Maturity Date or the
     Extended Maturity Date (as hereinafter defined) or upon the occurrence and
     during the continuance of an Event of Default, interest shall accrue on the
     balance of principal remaining unpaid during any such period at an annual
     rate ("DEFAULT RATE") equal to five percent (5%) plus the Loan Rate
     (whether or not a LIBOR Rate Contract is then in effect); provided,
     however, in no event shall the Default Rate exceed the maximum rate
     permitted by law. The interest accruing under this paragraph shall be
     immediately due and payable by Borrower to the holder of this Note upon
     demand and shall be additional indebtedness evidenced by this Note.

          2.3 INTEREST CALCULATION. Interest on this Note shall be calculated on
     the basis of a 360-day year and the actual number of days elapsed in any
     portion of a month in which interest is due.

     3. PAYMENT TERMS.

          3.1 PRINCIPAL AND INTEREST. Payments of principal and interest due
     under this Note, if not sooner declared to be due in accordance with the
     provisions hereof, shall be made as follows:

               (a) On the date the proceeds of the Loan are disbursed by Lender
          ("CLOSING DATE"), interest on the principal balance of this Note
          accruing during the period commencing on the Closing Date and ending
          on the last day of the month in which the Closing Date occurs shall be
          due and payable.

               (b) Commencing on February 1, 2006, and on the first Business Day
          of each month thereafter through and including the month in which the
          Maturity Date or Extended Maturity Date (as hereinafter defined)
          occurs, interest accrued on the portions of this Note bearing interest
          at the Loan Rate or the LIBOR Rate (and Applicable Margin) shall be
          due and payable. Any costs associated with the

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          termination or breakage or other disposition of a LIBOR Contract shall
          be due and payable in full on the date of such termination, breakage
          or disposition.

               (c) The unpaid principal balance of this Note, if not sooner paid
          or declared to be due in accordance with the terms hereof, together
          with all accrued and unpaid interest thereon and any other amounts due
          and payable hereunder or under any other Loan Document (as hereinafter
          defined), shall be due and payable in full on the Maturity Date or the
          Extended Maturity Date.

          3.2 APPLICATION OF PAYMENTS. Prior to the occurrence of an Event of
     Default, all payments and prepayments on account of the indebtedness
     evidenced by this Note shall be applied as follows: (a) first, to fees,
     expenses, costs and other similar amounts then due and payable to Lender,
     including, without limitation any prepayment premium, exit fee or late
     charges due hereunder, (b) second, to accrued and unpaid interest on the
     principal balance of this Note, (c) third, to the payment of principal due
     in the month in which the payment or prepayment is made, (d) fourth, to any
     escrows, impounds or other amounts which may then be due and payable under
     the Loan Documents (as hereinafter defined), (e) fifth, to any other
     amounts then due Lender hereunder or under any of the Loan Documents, and
     (f) last, to the unpaid principal balance of this Note in the inverse order
     of maturity. Any prepayment on account of the indebtedness evidenced by
     this Note shall not extend or postpone the due date or reduce the amount of
     any subsequent monthly payment of principal and interest due hereunder.
     After an Event of Default has occurred and is continuing, payments may be
     applied by Lender to amounts owed hereunder and under the Loan Documents in
     such order as Lender shall determine, in its sole discretion.

          3.3 METHOD OF PAYMENTS. All payments of principal and interest
     hereunder shall be paid by automatic debit, wire transfer, check or in coin
     or currency which, at the time or times of payment, is the legal tender for
     public and private debts in the United States of America and shall be made
     at such place as Lender or the legal holder or holders of this Note may
     from time to time appoint in the payment invoice or otherwise in writing,
     and in the absence of such appointment, then at the offices of Lender at
     135 South LaSalle Street, Suite 1225, Chicago, Illinois 60603, Attention:
     A. Brad Feine. Payment made by check shall be deemed paid on the date
     Lender receives such check; provided, however, that if such check is
     subsequently returned to Lender unpaid due to insufficient funds or
     otherwise, the payment shall not be deemed to have been made and shall
     continue to bear interest until collected. Notwithstanding the foregoing,
     the final payment due under this Note must be made by wire transfer or
     other final funds.

          3.4 LATE CHARGE. Other than the last payment due on the Maturity Date
     or the Extended Maturity Date, if any payment of interest or principal due
     hereunder is not made within seven days after such payment is due in
     accordance with the terms hereof (other than the payment due on the
     Maturity Date or Extended Maturity Date), then, in addition to the payment
     of the amount so due, Borrower shall pay to Lender a "late charge" of three
     cents for each whole dollar so overdue to defray part of the cost of
     collection and handling such late payment. Borrower agrees that the damages
     to be sustained by the holder hereof for the detriment caused by any late
     payment are

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     extremely difficult and impractical to ascertain, and that the amount of
     three cents for each one dollar due is a reasonable estimate of such
     damages, does not constitute interest, and is not a penalty.

          3.5 PREPAYMENT. [IF THE NOTE BEARS INTEREST AT THE LOAN RATE] The Note
     may be prepaid, either in whole or in part, without penalty or premium, at
     any time and from time to time upon five (5) days prior notice to Lender.
     [IF THE NOTE BEARS INTEREST AT THE LIBOR RATE] The Note may be prepaid,
     without penalty or premium, only on the last day of a LIBOR Rate Contract
     Period; provided, however, that Borrower may prepay a LIBOR Contract prior
     to such day so long as such prepayment is accompanied by the simultaneous
     payment of the Make Whole Costs (defined below), plus accrued interest on
     the LIBOR Contract being prepaid through the date of prepayment.

          "Make Whole Costs" shall mean the amount of accrued interest on the
     amount prepaid and any and all costs, expenses, penalties and charges
     incurred by the Lender as a result of the early termination or breakage of
     a LIBOR Contract, plus the amount, if any, by which (A) the additional
     interest which would have been payable during the Interest Period on the
     LIBOR Loan prepaid had it not been prepaid, exceeds (B) the interest which
     would have been recoverable by the Lender by placing the amount prepaid on
     deposit in the domestic certificate of deposit market, the eurodollar
     deposit market, or other appropriate money market selected by the Lender,
     for a period starting on the date on which it was prepaid and ending on the
     last day of the Interest Period for such LIBOR Contract.

          3.6 LOAN FEES. In consideration of Lender's agreement to make the
     Loan, Borrower shall pay to Lender a non-refundable fee in the amount of
     One Hundred Ninety-Five Thousand and No/100 Dollars ($195,000.00), which
     shall be due and payable as of the date hereof:

     4. EXTENSION OF MATURITY DATE. All principal, interest and other sums due
under the Loan Documents shall be due and payable in full on the Maturity Date.
Borrower shall have the right to extend the Maturity Date for one (1) additional
term of one (1) year ("EXTENSION PERIOD"), thereby extending the Maturity Date
to _________________, 2009 (the "EXTENDED MATURITY DATE") only upon satisfaction
of the following terms and conditions:

          4.1 Borrower shall have delivered to Lender written notice of such
     election no earlier than ninety (90) days and no later than forty-five (45)
     prior to the Maturity Date;

          4.2 Lender shall have received Borrower's and Guarantor's current
     financial statements, certified as correct by Borrower and Guarantor (as
     hereinafter defined). There must be no material adverse change in
     Borrower's or Guarantor's financial condition and no material adverse
     change in the condition of the Property;

          4.3 Such notice is accompanied by a non-refundable extension fee equal
     to one-quarter of one percent (0.25%) of the principal balance of the Loan
     (plus any undisbursed amounts) at the time of such extension request;

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          4.4 No Event of Default exists under any of the Loan Documents or has
     existed at any time, nor any event which would be an Event of Default if
     not cured within the time allowed; and

          4.5 The Debt Service Coverage (hereinafter defined) is not less than
     1.20 for the most recent calendar quarter.

     5. REFINANCING OF LOAN. Borrower agrees that, at such time as the Loan is
refinanced, Borrower shall permit Lender to offer a proposal for such
refinancing upon Lender's then-current underwriting standards. In the event that
Borrower shall solicit refinancing proposals from any other bank or credit
source, Borrower shall give Lender the right to offer to Borrower a proposal on
similar or more favorable terms than other competing proposals. Notwithstanding
the foregoing, Borrower acknowledges that Lender is under no obligation
whatsoever to make any proposal to Borrower on any specific terms and
conditions.

     6. SECURITY. This Note is secured by (i) a Deed of Trust, Security
Agreement and Fixture Filing ("DEED OF TRUST") of even date herewith made by
Borrower to Lender creating a mortgage lien on certain real property
("PROPERTY") legally described in Exhibit A attached to the Deed of Trust, (ii)
an Assignment of Leases and Rents ("ASSIGNMENT") of even date herewith from
Borrower to Lender, (iii) a Guaranty (Securities Laws) ("GUARANTY") of even date
herewith from Triple Net Properties, LLC ("GUARANTOR") to Lender, (iv) a Cash
Management Agreement from Borrower to Lender (the "LOCKBOX AGREEMENT"), (v) an
Environmental Indemnity Agreement ("INDEMNITY AGREEMENT") of even date herewith
from Borrower and Guarantor to Lender and (vi) a separate Guaranty of Payment
from each of Guarantor and Anthony W. Thompson (together, the "PAYMENT
GUARANTIES") (the Deed of Trust, the Assignment, the Guaranty, the Indemnity
Agreement, the Lockbox Agreement, the Payment Guaranties and any other document
now or hereafter given to evidence or secure payment of this Note or delivered
to induce Lender to disburse the proceeds of the Loan, as such documents may
hereafter be amended, restated or replaced from time to time, are hereinafter
collectively referred to as the "LOAN DOCUMENTS"). Reference is hereby made to
the Loan Documents (which are incorporated herein by reference as fully and with
the same effect as if set forth herein at length) for a statement of the
covenants and agreements contained therein, a statement of the rights, remedies,
and security afforded thereby, and all matters therein contained.

     7. EVENTS OF DEFAULT. The occurrence of any one or more of the following
events shall constitute an "EVENT OF DEFAULT" under this Note:

          7.1 the failure by Borrower to pay (i) any installment of principal or
     interest payable pursuant to this Note within five (5) days after the date
     when due, or (ii) any other amount payable to Lender under this Note, the
     Deed of Trust or any of the other Loan Documents within five (5) days after
     the date when any such payment is due in accordance with the terms hereof
     or thereof, or (iii) the outstanding Principal Amount and all outstanding
     and accrued and unpaid interest in full on the Maturity Date or the
     Extended Maturity Date;

          7.2 the occurrence of any "Event of Default" under the Deed of Trust
     or any of the other Loan Documents; or

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          7.3 the occurrence of the dissolution, insolvency, winding-up, death
     or legal incompetency, as applicable, of any guarantor of this Note,

          7.4 The occurrence of an Event of Default pursuant to Section 17 or 18
     below.

          7.5 The occurrence of an Event of Default under the loan documents
     evidencing the Mezzanine Loan (as hereinafter defined).

     8. REMEDIES. At the election of the holder hereof, and without notice, the
principal balance remaining unpaid under this Note, and all unpaid interest
accrued thereon and any other amounts due hereunder, shall be and become
immediately due and payable in full upon the occurrence of any Event of Default.
Failure to exercise this option shall not constitute a waiver of the right to
exercise same in the event of any subsequent Event of Default. No holder hereof
shall, by any act of omission or commission, be deemed to waive any of its
rights, remedies or powers hereunder or otherwise unless such waiver is in
writing and signed by the holder hereof, and then only to the extent
specifically set forth therein. The rights, remedies and powers of the holder
hereof, as provided in this Note, the Deed of Trust and in all of the other Loan
Documents are cumulative and concurrent, and may be pursued singly, successively
or together against Borrower, the Guarantor hereof, the Property and any other
security given at any time to secure the repayment hereof, all at the sole
discretion of the holder hereof. If any suit or action is instituted or
attorneys are employed to collect this Note or any part hereof, Borrower
promises and agrees to pay all costs of collection, including reasonable
attorneys' fees and court costs.

     9. COVENANTS AND WAIVERS. Borrower and all others who now or may at any
time become liable for all or any part of the obligations evidenced hereby,
expressly agree hereby to be jointly and severally bound, and jointly and
severally: (i) waive and renounce any and all homestead, redemption and
exemption rights and the benefit of all valuation and appraisement privileges
against the indebtedness evidenced by this Note or by any extension or renewal
hereof; (ii) waive presentment and demand for payment, notices of nonpayment and
of dishonor, protest of dishonor, notice of protest, notice of intent to
accelerate and notice of acceleration; (iii) except as expressly provided in the
Loan Documents, waive any and all notices in connection with the delivery and
acceptance hereof and all other notices in connection with the performance,
default, or enforcement of the payment hereof or hereunder; (iv) waive any and
all lack of diligence and delays in the enforcement of the payment hereof; (v)
agree that the liability of each Borrower, guarantor, endorser or obligor shall
be unconditional and without regard to the liability of any other person or
entity for the payment hereof, and shall not in any manner be affected by any
indulgence or forbearance granted or consented to by Lender to any of them with
respect hereto; (vi) consent to any and all extensions of time, renewals,
waivers, or modifications that may be granted by Lender with respect to the
payment or other provisions hereof, and to the release of any security at any
time given for the payment hereof, or any part thereof, with or without
substitution, and to the release of any person or entity liable for the payment
hereof; and (vii) consent to the addition of any and all other makers,
endorsers, guarantors, and other obligors for the payment hereof, and to the
acceptance of any and all other security for the payment hereof, and agree that
the addition of any such makers, endorsers, guarantors or other obligors, or
security shall not affect the liability of Borrower, any guarantor and all
others now liable for all or any part of the obligations evidenced hereby. This
provision is a material inducement for Lender making the Loan to Borrower.

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10. OTHER GENERAL AGREEMENTS.

     10.1 Time is of the essence hereof.

     10.2 This Note is governed and controlled as to validity, enforcement,
interpretation, construction, effect and in all other respects by the statutes,
laws and decisions of the State of Illinois. This Note may not be changed or
amended orally but only by an instrument in writing signed by the party against
whom enforcement of the change or amendment is sought.

     10.3 Lender shall not be construed for any purpose to be a partner, joint
venturer, agent or associate of Borrower or of any lessee, operator,
concessionaire or licensee of Borrower in the conduct of its business, and by
the execution of this Note, Borrower agrees to indemnify, defend, and hold
Lender harmless from and against any and all damages, costs, expenses and
liability that may be incurred by Lender as a result of a claim that Lender is
such partner, joint venturer, agent or associate.

     10.4 This Note has been made and delivered at Chicago, Illinois and all
funds disbursed to or for the benefit of Borrower will be disbursed in Chicago,
Illinois.

     10.5 If this Note is executed by more than one party, the obligations and
liabilities of each Borrower under this Note shall be joint and several and
shall be binding upon and enforceable against each Borrower and their respective
successors and assigns. This Note shall inure to the benefit of and may be
enforced by Lender and its successors and assigns.

     10.6 If any provision of this Note is deemed to be invalid by reason of the
operation of law, or by reason of the interpretation placed thereon by any
administrative agency or any court, Borrower and Lender shall negotiate an
equitable adjustment in the provisions of the same in order to effect, to the
maximum extent permitted by law, the purpose of this and the validity and
enforceability of the remaining provisions, or portions or applications thereof,
shall not be affected thereby and shall remain in full force and effect.

     10.7 If the interest provisions herein or in any of the Loan Documents
shall result, at any time during the Loan, in an effective rate of interest
which, for any month, exceeds the limit of usury or other laws applicable to the
Loan, all sums in excess of those lawfully collectible as interest of the period
in question shall, without further agreement or notice between or by any party
hereto, be applied upon principal immediately upon receipt of such monies by
Lender, with the same force and effect as though the payer has specifically
designated such extra sums to be so applied to principal and Lender had agreed
to accept such extra payment(s) as a premium-free prepayment. Notwithstanding
the foregoing, however, Lender may at any time and from time to time elect by
notice in writing to Borrower to reduce or limit the collection to such sums
which, when added to the said first-stated interest, shall not result in any
payments toward principal in accordance with the requirements of the preceding
sentence. In no event shall any agreed to or actual exaction as consideration
for this Loan transcend the

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     limits imposed or provided by the law applicable to this transaction or the
     makers hereof in the jurisdiction in which the Property are located for the
     use or detention of money or for forbearance in seeking its collection.

          10.8 Lender may at any time assign its rights in this Note and the
     Loan Documents, or any part thereof and transfer its rights in any or all
     of the collateral, and Lender thereafter shall be relieved from all
     liability with respect to such collateral. In addition, Lender may at any
     time sell one or more participations in the Note. Borrower may not assign
     its interest in this Note, or any other agreement with Lender or any
     portion thereof, either voluntarily or by operation of law, without the
     prior written consent of Lender.

     11. NOTICES. All notices required under this Note will be in writing and
will be transmitted in the manner and to the addresses or facsimile numbers
required by the Deed of Trust, or to such other addresses or facsimile numbers
as Lender and Borrower may specify from time to time in writing.

     12. CONSENT TO JURISDICTION. TO INDUCE LENDER TO ACCEPT THIS NOTE, BORROWER
IRREVOCABLY AGREES THAT, SUBJECT TO LENDER'S SOLE AND ABSOLUTE ELECTION, ALL
ACTIONS OR PROCEEDINGS IN ANY WAY ARISING OUT OF OR RELATED TO THIS NOTE WILL BE
LITIGATED IN COURTS HAVING SITUS IN CHICAGO, ILLINOIS. BORROWER HEREBY CONSENTS
AND SUBMITS TO THE JURISDICTION OF ANY COURT LOCATED WITHIN CHICAGO, ILLINOIS,
WAIVES PERSONAL SERVICE OF PROCESS UPON BORROWER, AND AGREES THAT ALL SUCH
SERVICE OF PROCESS MAY BE MADE BY REGISTERED MAIL DIRECTED TO BORROWER AT THE
ADDRESS STATED IN THE DEED OF TRUST AND SERVICE SO MADE WILL BE DEEMED TO BE
COMPLETED UPON ACTUAL RECEIPT.

     13. WAIVER OF JURY TRIAL. BORROWER AND LENDER (BY ACCEPTANCE OF THIS NOTE),
HAVING BEEN REPRESENTED BY COUNSEL, EACH KNOWINGLY AND VOLUNTARILY WAIVES ANY
RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY
RIGHTS (A) UNDER THIS NOTE OR ANY RELATED AGREEMENT OR UNDER ANY AMENDMENT,
INSTRUMENT, DOCUMENT OR AGREEMENT DELIVERED OR WHICH MAY IN THE FUTURE BE
DELIVERED IN CONNECTION WITH THIS NOTE OR (B) ARISING FROM ANY BANKING
RELATIONSHIP EXISTING IN CONNECTION WITH THIS NOTE, AND AGREES THAT ANY SUCH
ACTION OR PROCEEDING WILL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY.
BORROWER AGREES THAT IT WILL NOT ASSERT ANY CLAIM AGAINST LENDER ON ANY THEORY
OF LIABILITY FOR SPECIAL, INDIRECT, CONSEQUENTIAL, INCIDENTAL OR PUNITIVE
DAMAGES.

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     14. Partial Guaranty Loan.

          14.1 Subject to the terms of Section 14.2 below, this Note is payable
     only out of the property specifically described in the Deed of Trust and
     the other Loan Documents, by the enforcement of the provisions contained in
     the Loan Documents and out of any other property, security or guaranties
     given for the Loan and accordingly:

               (a) No personal liability shall be asserted or be enforceable
          against Borrower, its partners, officers or members, as applicable, or
          against its successors or assigns because of or in respect of this
          Note, or the making, issue or transfer hereof, all such liability, if
          any, being expressly waived by the Lender;

               (b) In case of default in the payment of this Note, the sole
          remedies of the Lender shall be (i) foreclosure of the Deed of Trust
          in accordance with the terms and provisions thereof, (ii) enforcement
          of the other Loan Documents, and (iii) enforcement of or realization
          upon any other property and security given for the Loan, if any;

               (c) Nothing herein contained shall be deemed a waiver by the
          Lender of any right which the Lender may have pursuant to Sections
          506(a), 506(b), and 1111 (b) or any other provision of the Bankruptcy
          Code of the United States to file a claim for the full amount of the
          Loan or to require that all collateral or security for the Loan shall
          continue to secure the entire amount of the Loan in accordance with
          the Loan Documents; and

               (d) Nothing herein contained shall affect or impair the liability
          or obligation of any guarantor, co-maker or other person who by
          separate instrument shall be or become liable upon or obligated for
          any of the Loan or any of the covenants or agreements contained in the
          Loan Documents.

          14.2 Notwithstanding the provisions of subparagraph 14.1 above,
     Borrower and Guarantor shall at all times that any amounts remain
     outstanding under this Note have joint and several liability for payment of
     the following amounts:

               (a) all amounts due and owing by Borrower under the Note and the
          Loan Documents if (i) there is fraud by Borrower, its partners,
          shareholders, members, officers or directors, as the case may be, or
          any Guarantor with respect to the Loan, (ii) a transfer or lien in
          violation of Paragraph 15 or 16 of the Deed of Trust occurs, (iii)
          Borrower contests, delays or otherwise hinders any action taken by the
          Lender in connection with the appointment of a receiver for the
          Property or the foreclosure of the liens, mortgages or other security
          interests created by any of the Loan Documents, or (iv) Borrower
          voluntarily files for bankruptcy or is involuntarily placed into
          bankruptcy by Guarantor or any member in Borrower or any
          representative of Borrower or any such party, and such involuntary
          bankruptcy is not dismissed within sixty (60) days after the filing
          thereof; and

               (b) the Additional Liabilities (as hereinafter defined) without
          regard to the limitation of liability set forth above, which amount
          shall be due and payable

                                       11

<PAGE>

          to the Lender on demand. As used herein, the "Additional Liabilities"
          shall mean an amount equal to the sum of the following;

                    (i) all expenses and costs incurred by or on behalf of the
               Lender (including, without limitation, expenses and reasonable
               attorneys' fees) in enforcing the rights and remedies of the
               Lender under this section, together with all interest calculated
               at the Default Rate until paid on all amounts owed by the
               Guarantor which accrues from and after the date the Lender's
               demand for payment is delivered to the Guarantor;

                    (ii) all damages, expenses or costs suffered or incurred by
               the Lender as a result of any material misrepresentation in any
               of the Loan Documents;

                    (iii) all damages, expenses or costs suffered or incurred by
               the Lender as a result of physical waste with respect to any
               portion of the Property;

                    (iv) all damages, expenses or costs suffered or incurred by
               the Lender as a result of the removal or disposal of any property
               in which the Lender has a security interest in violation of the
               terms and conditions of the Loan Documents;

                    (v) all damages, expenses or costs suffered or incurred by
               the Lender as a result of claims for compensation asserted by any
               real estate broker not employed by the Lender or as a result of
               any such broker's liens on the Property or mechanic's or
               materialmen's liens not expressly permitted or contested under
               the Deed of Trust;

                    (vi) all damages, expenses or costs suffered or incurred by
               the Lender as a result of the application of any insurance
               proceeds or condemnation awards (to the full extent of such
               proceeds or awards) not permitted by the Deed of Trust or the
               failure of Borrower to maintain the insurance coverages required
               by the Deed of Trust;

                    (vii) all revenues received by or on behalf of Borrower from
               the operation or ownership of the Property after the Lender has
               notified Borrower of a Default under any of the provisions of the
               Loan Documents, less only that portion of such revenues which is
               (A) actually used by Borrower to operate the Property in the
               ordinary course of business and such use is in accordance with an
               operating budget approved by the Lender or otherwise approved in
               writing by the Lender or (B) paid to the Lender;

                    (viii) all security deposits provided for in any leases for
               any part of the Property (together with interest thereon to the
               extent that interest is payable under such leases) which are not
               (A) used in the ordinary course of business in accordance with
               the terms of such leases to cure defaults by

                                       12
<PAGE>

               tenants depositing the same, (B) returned to tenants in
               accordance with the terms of the leases, or (C) paid over to the
               Lender, and all lease termination fees payable for terminating
               any such leases which are not paid jointly to Borrower and the
               Lender or otherwise applied as provided in the Loan Documents;

                    (ix) all damages, expenses or costs suffered or incurred by
               Lender as a result of the Environmental Indemnity Agreement from
               Borrower and Guarantor of even date herewith;

                    (x) all damages, expenses or costs suffered or incurred by
               Lender as a result of non-payment of real estate taxes; and/or

                    (xi) all damages, expenses or costs suffered or incurred by
               Lender as a result of misappropriation of rental payments paid
               more than one month in advance.

     15. CUSTOMER IDENTIFICATION - USA PATRIOT ACT NOTICE; OFAC AND BANK SECRECY
ACT. Lender hereby notifies Borrower that pursuant to the requirements of the
USA Patriot Act (Title III of Pub. L. 107-56, signed into law October 26, 2001)
(the "ACT"), and Lender's policies and practices, Lender is required to obtain,
verify and record certain information and documentation that identifies
Borrower, which information includes the name and address of Borrower and such
other information that will allow Lender to identify Borrower in accordance with
the Act. In addition, Borrower shall (a) ensure that no person who owns a
controlling interest in or otherwise controls Borrower or any subsidiary of
Borrower is or shall be listed on the Specially Designated Nationals and Blocked
Person List or other similar lists maintained by the Office of Foreign Assets
Control ("OFAC"), the Department of the Treasury or included in any Executive
Orders, (b) not use or permit the use of the proceeds of the Loan to violate any
of the foreign asset control regulations of OFAC or any enabling statute or
Executive Order relating thereto, and (c) comply, and cause any of its
subsidiaries to comply, with all applicable Bank Secrecy Act ("BSA") laws and
regulations, as amended.

     16. EXPENSES AND INDEMNIFICATION. Borrower shall pay all costs and expenses
in connection with the preparation of this Note and the Loan Documents,
including, without limitation, reasonable attorneys' fees and time charges of
attorneys who may be employees of Lender or any affiliate or parent of Lender.
Borrower shall pay any and all stamp and other taxes, UCC search fees, filing
fees and other costs and expenses in connection with the execution and delivery
of this Note and the other instruments and documents to be delivered hereunder,
and agrees to save Lender harmless from and against any and all liabilities with
respect to or resulting from any delay in paying or omission to pay such costs
and expenses. Borrower also agrees to defend (with counsel satisfactory to
Lender), protect, indemnify and hold harmless Lender, any parent corporation,
affiliated corporation or subsidiary of Lender, and each of their respective
officers, directors, employees, attorneys and agents (each an "INDEMNIFIED
PARTY") from and against any and all liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, claims, costs, expenses and distributions
of any kind or nature (including, without limitation, the disbursements and the
reasonable fees of counsel for each Indemnified Party thereto, which shall also
include, without limitation, attorneys' fees and time charges of

                                       13

<PAGE>

attorneys who may be employees of Lender, any parent corporation or affiliated
corporation of Lender), which may be imposed on, incurred by, or asserted
against, any Indemnified Party (whether direct, indirect or consequential and
whether based on any federal, state or local laws or regulations, including,
without limitation, securities, environmental laws and commercial laws and
regulations, under common law or in equity, or based on contract or otherwise)
in any manner relating to or arising out of this Note or any of the Loan
Documents, or any act, event or transaction related or attendant thereto, the
preparation, execution and delivery of this Note and the Loan Documents, the
making or issuance and management of the Loan, the use or intended use of the
proceeds of this Note and the enforcement of Lender's rights and remedies under
this Note, the Loan Documents any other instruments and documents delivered
hereunder, or under any other agreement between Borrower and Lender; provided,
however, that Borrower shall not have any obligations hereunder to any
Indemnified Party with respect to matters caused by or resulting from the
willful misconduct or gross negligence of such Indemnified Party. To the extent
that the undertaking to indemnify set forth in the preceding sentence may be
unenforceable because it violates any law or public policy, Borrower shall
satisfy such undertaking to the maximum extent permitted by applicable law. Any
liability, obligation, loss, damage, penalty, cost or expense covered by this
indemnity shall be paid to each Indemnified Party on demand, and failing prompt
payment, together with interest thereon at the Default Rate from the date
incurred by each Indemnified Party until paid by Borrower, shall be added to the
obligations of Borrower evidenced by this Note and secured by the collateral
securing this Note. The provisions of this section shall survive the
satisfaction and payment of this Note.

     17. DEBT SERVICE COVERAGE REQUIREMENT. Within forty-five (45) days after
each Calculation Date Borrower shall submit to Lender a detailed calculation of
the Debt Service Coverage for such calendar quarter certified as being true and
correct by an officer of Borrower (a "DSC CERTIFICATE"), in a form reasonably
acceptable to Lender. Lender shall have the right to adjust any calculation by
Borrower of Debt Service Coverage so as to correct such calculation or render
such calculation in compliance with the provisions of this Section 17. An Event
of Default shall occur if either (i) Borrower shall fail to deliver the DSC
Certificate as required above, or (ii) if the Debt Service Coverage is less than
the Minimum Debt Service Coverage for any Calculation Period (a "DSC DEFAULT");
provided that Borrower may cure a DSC Default by repaying such portion of the
principal balance of the Loan as is necessary to cause the Debt Service Coverage
to be not less than the Minimum Debt Service Coverage. During the existence of a
DSC Default, not later than fifteen (15) days following the end of each calendar
month Borrower shall pay to Lender all monthly Net Operating Income (calculated
based on actual Operating Expenses with no imputed or minimum Operating Expenses
included for purpose of such calculation) available after payment of amounts due
and payable pursuant to the Loan Documents, to be applied as set forth in the
Lockbox Agreement, and shall with each such payment deliver a statement setting
forth a detailed calculation of monthly Net Operating Income certified by an
officer of Borrower. For the purposes hereof, the following terms shall have the
meanings set forth below:

     ASSUMED DEBT SERVICE: On a per annum basis, the product obtained by
multiplying the outstanding principal balance of the Loan and the Mezzanine Loan
as of the Calculation Date by the loan constant derived by applying a thirty
(30) year amortization schedule to the outstanding principal balance of the Loan
using an interest rate equal to the yield per annum as of the date of such
calculation of the greater of (x) eight percent (8%) per annum, or (y) the "on
the run" U.S.

                                       14

<PAGE>

Government T-Notes maturing approximately ten (10) years after the Calculation
Date (determined in good faith by Lender), plus two and one-half percent (2.50%)
per annum, or (z) the actual blended rate of interest payable with respect to
the Loan and the Mezzanine Loan.

     CALCULATION DATE: The last day of each Calculation Period.

     CALCULATION PERIOD: Any calendar quarter commencing on or after January 1,
2006 (For example, the first Calculation Period would consist of January,
February and March, 2006; the second Calculation Period would consist of April,
May and June, 2006 and so on).

     DEBT SERVICE COVERAGE: With respect to each Calculation Period, the amount
calculated by dividing Net Operating Income for such period by Assumed Debt
Service for such period.

     GROSS REVENUES: For any period, all revenues of Borrower, determined in
accordance with sound accounting practices related to the real estate industry
(excluding any straight-line adjustments to rent and with free rent not counted
as revenues), derived from leases entered approved by Lender or entered into in
accordance with the terms of the Loan Documents with Tenants in occupancy and
paying rent under their respective leases, as all such revenues are verified in
a sworn statement of Borrower delivered to Lender together with all necessary
supporting documentation reasonably requested by Lender; provided, however, that
in no event shall Gross Revenues include (i) any gain arising from any write-up
of assets; (ii) any loan proceeds, (iii) proceeds or payments under insurance
policies (except that proceeds of business interruption insurance covering the
Project shall be included in Gross Revenues); (iv) gross receipts of licensees,
concessionaires or similar third parties; (v) condemnation proceeds or sales
proceeds in lieu of and/or under threat of condemnation; (vi) any security
deposits received from tenants in the Project, unless and until the same are
applied to rent or other obligations in accordance with the tenant's lease; or
(vii) any other extraordinary non-recurring items, in Lender's reasonable
discretion.

     MEZZANINE LOAN: That certain mezzanine loan of even date herewith made by
Lender to Borrower in the original principal amount of $3,000,000.00.

     MINIMUM DEBT SERVICE COVERAGE: Shall initially mean 1.00 and shall be
increased to 1.20 on the earlier to occur of (x) the Calculation Period
immediately following the initial Calculation Period for which the Debt Service
Coverage equals or exceeds 1.20, and (y) the initial Calculation Period
commencing during the Extension Period.

     NET OPERATING INCOME: For any period, the amount by which Gross Revenues
for such period exceed Operating Expenses for such period.

     OPERATING EXPENSES: For any period, without duplication, the actual costs
and expenses of owning, operating, managing, repairing and maintaining the
Project during such period incurred by Borrower, including, without limitation,
real estate taxes; insurance premiums and utility costs, but using the following
adjustments: management fees shall be calculated at a rate equal to the greater
of three percent (3%) of gross revenues or the actual management fees for such
period; assumed reserves shall be included in Operating Expenses in the amount
of $0.25 per square foot of net rentable space in the Project per annum for
capital expenditures, leasing expenses and non-recoverable tenant improvement
costs; provided, however, that Operating

                                       15
<PAGE>

Expenses shall exclude (i) interest or principal due on the Loan, (ii) any fees
paid to Lender in connection with the Loan, (iii) capital expenditures other
than the reserve amount set forth above, or (iv) depreciation, amortization and
other non-cash items. For the purpose of calculating Operating Expenses
hereunder, those Operating Expenses that are paid by Borrower on an irregular
basis during the calendar year, including real estate taxes and insurance, shall
be annualized and deemed expended in equal monthly installments throughout the
calendar year.

     18. CASH DISTRIBUTION. Borrower shall not make any distributions to
partners, members or shareholders; provided that so long as (i) no Event of
Default exists, (ii) Debt Service Coverage for each of the two most recent
Calculation Periods equals or exceeds 1.25, and (iii) Borrower is not obligated
to pay excess Net Operating Income to Lender pursuant to Section 17 above,
Borrower may distribute monthly Net Excess Cash Flow remaining after principal
and interest payments and payment of any required deposits due to Lender under
the Loan Documents (and pursuant to the documents evidencing and securing the
Mezzanine Loan) for such month. The failure of Borrower to comply with the
provisions of this Section 18 shall constitute an Event of Default.

     19. LOCKBOX ARRANGEMENT. Pursuant to the Lockbox Agreement, upon the
occurrence of a Trigger Event (as defined in the Lockbox Agreement), Borrower
shall direct all tenants under leases of space in the Property to make all
payments due to Lender directly to a post office box (the "LOCKBOX") designated
by, and under the exclusive control of, Lender. Pursuant to the Lockbox
Agreement, Borrower shall establish the Lockbox and an account (the "LOCKBOX
ACCOUNT") in Borrower's name with Lender into which all payments received in the
Lockbox shall be deposited, and into which Borrower will immediately deposit all
payments received by Borrower in the identical form in which such payments were
made, whether by cash or check. If Borrower, a subsidiary or any director,
officer, employee, agent or Borrower or any subsidiary, or any other person
acting for or in concert with Borrower shall receive any monies, checks, notes,
drafts or other payments relating to or as proceeds of Property, Borrower and
each such person shall receive all such items in trust for, and as the sole and
exclusive property of, Lender and, immediately upon receipt thereof, shall remit
the same (or cause the same to be remitted) in kind to the Lockbox Account.
Borrower agrees that all payments made to such Lockbox and Lockbox Account or
otherwise received by Lender, whether in respect of the accounts or as proceeds
of other collateral or otherwise, will be applied as set forth in the Lockbox
Agreement. Borrower agrees to pay all fees, costs and expenses which Lender
incurs in connection with opening and maintaining the Lockbox and the Lockbox
Account and depositing for collection by Lender any check or other item of
payment received by Lender on account of the indebtedness evidenced by this
Note. All of such fees, costs and expenses shall constitute indebtedness
evidenced by this Note, shall be payable to Lender by Borrower upon demand, and,
until paid, shall bear interest at the Default Rate. All checks, drafts,
instruments and other items of payment or proceeds shall be endorsed by Borrower
to Lender, and, if that endorsement of any such item shall not be made for any
reason, Lender is hereby irrevocably authorized to endorse the same on
Borrower's behalf. For the purpose of this section, Borrower irrevocably hereby
makes, constitutes and appoints Lender (and all persons designated by Lender for
that purpose) as Borrower's true and lawful attorney and agent-in-fact (i) to
endorse Borrower's name upon such items of payment and/or proceeds and any
document, instrument, invoice or similar document or agreement relating to any
account of Borrower or goods pertaining thereto; (ii) to take control in any
manner of any item of payment or proceeds thereof;

                                       16

<PAGE>

and (iii) to have access to any lock box or postal box into which any of
Borrower's mail is deposited, and open and process all mail addressed to
Borrower and deposited therein.

     20. USE OF LOAN PROCEEDS. The proceeds of the Loan and the Mezzanine Loan
shall be used by Borrower for the purposes set forth in EXHIBIT B attached
hereto.

                  [BALANCE OF PAGE INTENTIONALLY LEFT BLANK -
                            SIGNATURE PAGE FOLLOWS]

                                       17

<PAGE>

     IN WITNESS WHEREOF, Borrower has executed and delivered this Note as of the
day and year first written above.

                                        BORROWER:

                                        NNN EXECUTIVE CENTER, LLC, a Delaware
                                        limited liability company

                                        By: Triple Net Properties, LLC, a
                                            Virginia limited liability company,
                                            its sole manager

                                        By: /s/ LOUIS ROGERS
                                            ------------------------------------
                                        Name: LOUIS ROGERS
                                        Its: PRESIDENT

                                        NNN EXECUTIVE CENTER 1, LLC, a Delaware
                                        limited liability company

                                        By: Triple Net Properties, LLC, a
                                            Virginia limited liability company,
                                            its Vice President

                                        By: /s/ LOUIS ROGERS
                                            ------------------------------------
                                        Name: LOUIS ROGERS
                                        Its: PRESIDENT

                                        NNN EXECUTIVE CENTER 2, LLC, a Delaware
                                        limited liability company

                                        By: Triple Net Properties, LLC, a
                                            Virginia limited liability company,
                                            its Vice President

                                        By: /s/ LOUIS ROGERS
                                            ------------------------------------
                                        Name: LOUIS ROGERS
                                        Its: PRESIDENT

                                        NNN EXECUTIVE CENTER 3, LLC, a Delaware
                                        limited liability company

                                        By: Triple Net Properties, LLC, a
                                            Virginia limited liability company,
                                            its Vice President

                                        By: /s/ LOUIS ROGERS
                                            ------------------------------------
                                        Name: LOUIS ROGERS
                                        Its: PRESIDENT
<PAGE>

                                       NNN EXECUTIVE CENTER 4, LLC, a Delaware
                                       limited liability company

                                       By: Triple Net Properties, LLC,
                                           a Virginia limited liability company,
                                           its Vice President

                                       By: /s/ LOUIS ROGERS
                                           -------------------------------------
                                       Name: LOUIS ROGERS
                                       Its: PRESIDENT

                                       NNN EXECUTIVE CENTER 5, LLC,
                                       a Delaware limited liability company

                                       By: Triple Net Properties, LLC,
                                           a Virginia limited liability company,
                                           its Vice President

                                       By: /s/ LOUIS ROGERS
                                           -------------------------------------
                                       Name: LOUIS ROGERS
                                       Its: PRESIDENT

                                       NNN EXECUTIVE CENTER 6, LLC,
                                       a Delaware limited liability company

                                       By: Triple Net Properties, LLC,
                                           a Virginia limited liability company,
                                           its Vice President

                                       By: /s/ LOUIS ROGERS
                                           -------------------------------------
                                       Name: LOUIS ROGERS
                                       Its: PRESIDENT

                                       NNN EXECUTIVE CENTER 7, LLC, a Delaware
                                       limited liability company,

                                       By: Triple Net Properties, LLC,
                                           a Virginia limited liability company,
                                           its Vice President

                                       By: /s/ LOUIS ROGERS
                                           -------------------------------------
                                       Name: LOUIS ROGERS
                                       Its: PRESIDENT

<PAGE>

                                       NNN EXECUTIVE CENTER 8, LLC,
                                       a Delaware limited liability company

                                       By: Triple Net Properties, LLC,
                                           a Virginia limited liability company,
                                           its Vice President

                                       By: /s/ LOUIS ROGERS
                                           -------------------------------------
                                       Name: LOUIS ROGERS
                                       Its: PRESIDENT

                                       NNN EXECUTIVE CENTER 9, LLC,
                                       a Delaware limited liability company

                                       By: Triple Net Properties, LLC,
                                           a Virginia limited liability company,
                                           its Vice President

                                       By: /s/ LOUIS ROGERS
                                           -------------------------------------
                                       Name: LOUIS ROGERS
                                       Its: PRESIDENT

                                       NNN EXECUTIVE CENTER 10, LLC,
                                       a Delaware limited liability company

                                       By: Triple Net Properties, LLC,
                                           a Virginia limited liability company,
                                           its Vice President

                                       By: /s/ LOUIS ROGERS
                                           -------------------------------------
                                       Name: LOUIS ROGERS
                                       Its: PRESIDENT

                                       NNN EXECUTIVE CENTER 11, LLC,
                                       a Delaware limited liability company

                                       By: Triple Net Properties, LLC,
                                           a Virginia limited liability company,
                                           its Vice President

                                       By: /s/ LOUIS ROGERS
                                           -------------------------------------
                                       Name: LOUIS ROGERS
                                       Its: PRESIDENT

<PAGE>

                                       NNN EXECUTIVE CENTER 12, LLC,
                                       a Delaware limited liability company

                                       By: Triple Net Properties, LLC,
                                           a Virginia limited liability company,
                                           its Vice President

                                       By: /s/ LOUIS ROGERS
                                           -------------------------------------
                                       Name: LOUIS ROGERS
                                       Its: PRESIDENT

                                       NNN EXECUTIVE CENTER 13, LLC,
                                       a Delaware limited liability company

                                       By: Triple Net Properties, LLC,
                                           a Virginia limited liability company,
                                           its Vice President

                                       By: /s/ LOUIS ROGERS
                                           -------------------------------------
                                       Name: LOUIS ROGERS
                                       Its: PRESIDENT

                                       NNN EXECUTIVE CENTER 15, LLC,
                                       a Delaware limited liability company

                                       By: Triple Net Properties, LLC,
                                           a Virginia limited liability company,
                                           its Vice President

                                       By: /s/ LOUIS ROGERS
                                           -------------------------------------
                                       Name: LOUIS ROGERS
                                       Its: PRESIDENT

                                       NNN EXECUTIVE CENTER 16, LLC,
                                       a Delaware limited liability company

                                       By: Triple Net Properties, LLC,
                                           a Virginia limited liability company,
                                           its Vice President

                                       By: /s/ LOUIS ROGERS
                                           -------------------------------------
                                       Name: LOUIS ROGERS
                                       Its: PRESIDENT

<PAGE>

                                        NNN EXECUTIVE CENTER II AND III 2003,
                                        LP, a Texas limited partnership

                                        By: NNN Executive Center II and III GP,
                                            LLC, a Delaware limited liability
                                            company, its sole general partner

                                        By: Triple Net Properties, LLC,
                                            a Virginia limited liability
                                            company, its sole manager

                                        By: /s/ LOUIS ROGERS
                                            ------------------------------------
                                        Name: LOUIS ROGERS
                                        Its: PRESIDENT

<PAGE>

                                     JOINDER

     The undersigned joins in the execution and delivery of this Note solely for
the purpose of joining in the obligations described in paragraph 14.2 thereof
and except as specifically described therein, the undersigned has no obligations
under this Note.

                                        GUARANTOR:

                                        TRIPLE NET PROPERTIES, LLC, a Virginia
                                        limited liability company

                                        By: /s/ LOUIS ROGERS
                                            ------------------------------------
                                        Name: LOUIS ROGERS
                                        Its: PRESIDENT

                                        /s/ Anthony W. Thompson
                                        ----------------------------------------
                                        Name: Anthony W. Thompson

<PAGE>

                                    EXHIBIT A

                              ADDITIONAL BORROWERS

                           NNN Executive Center 1, LLC
                           NNN Executive Center 2, LLC
                           NNN Executive Center 3, LLC
                           NNN Executive Center 4, LLC
                           NNN Executive Center 5, LLC
                           NNN Executive Center 6, LLC
                           NNN Executive Center 7, LLC
                           NNN Executive Center 8, LLC
                           NNN Executive Center 9, LLC
                          NNN Executive Center 10, LLC
                          NNN Executive Center 11, LLC
                          NNN Executive Center 12, LLC
                          NNN Executive Center 13, LLC
                          NNN Executive Center 15, LLC
                          NNN Executive Center 16, LLC
                    NNN Executive Center II and III 2003, LP

<PAGE>

                                    EXHIBIT B

                              USE OF LOAN PROCEEDS

                            EXECUTIVE CENTER II & III

<TABLE>
<CAPTION>
                                                       TOTAL
                                                      COST/SF
                                                      -------
<S>                                         <C>       <C>
Total SF                                    368,305    $79.83
</TABLE>

<TABLE>
<CAPTION>
                                                         %      $/SF
                                                      ------   ------
<S>                                     <C>           <C>      <C>
SOURCES
Senior Loan                             $13,000,000     44.2%  $35.30
Mezzanine Loan                            3,000,000     10.2%  $ 8.15
Initial Equity                           10,033,000     34.1%   27.24
Additional Equity                         3,368,102     11.5%    9.14
                                        -----------    -----   ------
TOTAL SOURCES                           $29,401,102    100.0%  $79.83
                                        ===========    =====   ======
</Table>

<TABLE>
<CAPTION>
                                                         %      $/SF
                                                      ------   ------
<S>                                     <C>           <C>      <C>
USES
Current LBNA loan balance
   ($14.95MM original amount)           $14,567,000     49.5%  $39.55
Residual Equity (net of debt) from
   the Purchase Price ($24.6MM)          10,033,000     34.1%  $27.24
Elevator Upgrade
   (to be completed in 4Q06)                365,000      1.2%  $ 0.99

LEASING COSTS
   Tenant Improvements ($8.00/$20.00)   $ 1,966,528      6.7%    5.34
   Leasing Commissions (5.75%)            1,779,574      6.1%    4.83
                                        -----------   ------   ------
TOTAL LEASING COSTS                       3,746,102     12.7%   10.17
                                        ===========   ======   ======

FINANCING COSTS
   Loan Fees                            $   240,000      0.8%    0.65
   Interest Reserve                         450,000      1.5%    1.22
                                        -----------   ------   ------
TOTAL FINANCE COSTS                         690,000      2.3%    1.87
                                        -----------   ------   ------
TOTAL USES                              $29,401,102   100.00%   79.83
                                        ===========   ======   ======
</TABLE>

                                      A-1exv10w54

 

Exhibit 10.54

	 	 	 	 	 	 	 	 	 	 
	
      SOLICITATION/CONTRACT/ORDER FOR COMMERICAL ITEMS
Offeror to complete blocks 12,17, 23, 24, & 30
	 	 	1. REQUISITION NUMBER	 	 	PAGE 1 OF 35
	 	 	 	 	 	 	 	 	 	 
	
      2. CONTRACT NO.
    HHSO100200500008C
	  3. AWARD/EFFECTIVE DATE	 	4. ORDER NUMBER	 	 	5. SOLICITATION NUMBER
      Awarded under 
  RFP-DHHS-ORDC-
         DDA-05-10	 	 	6. SOLICITATION ISSUE DATE

              10/07/2005
	 	 	 	 	 	 	 	 	 	 
	
      
7.  FOR SOLICITATION
	  A. NAME	 	 	 	 	B. TELEPHONE (No Collect Calls)	 	 	8. OFFER DUE DATE/

LOCAL TIME

	
      INFORMATION CALL
	Darrick A. Early	 	 	202-205-5668	 	 	 
	 	 	 	 	 	 	 	 	 	 

    
	 	 	 	 	 	 	 	 	 	 	 	 	 
	
      9. ISSUED BY
	 	CODE	 	 	 	 	10. THIS ACQUISITION IS

x UNRESTRICTED

o SET-ASIDE:                    %FOR

     o SMALL BUSINESS

     o SMALL DISADV. BUSINSESS

     o 8(A)

NAICS:  325412

SIZE STANDARD: 750	 	11. DELIVERY FOR FOB

DESTINATION UNLESS

BLOCK IS MARKED

o SEE SCHEDULE	 	12. DISCOUNT TERMS
	HHS/OPHEP/ORDC

HUBERT H HUMPHREY BUILDING

200 INDEPENDENCE AVE, RM 636G

WASHINGTON DC 20201

Attention: David K. Beck
	 	 	 	o 13a. THIS CONTRACT IS A RATED ORDER

                      UNDER DPAS (15 CFR 700)

	 	 	 	13b. RATING

	 	 	 	14. METHOD OF SOLICITATION

                            o RFQ           o IFB           x RFP

	 	 	 	 	 	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	
      15. DELIVER TO:
	 	CODE	 	 	 	16. ADMINSTERED BY	CODE  	 	 
	
       
	 	 	 	 	 	 	 
	
      SEE SOW FOR DELIVERY INFORMATION
	 	 	 	 SEE BLOCK 9
	
       
	 	 	 	 
	
       
	 	 	 	 
	
       
	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	
      17a. CONTRACTOR/OFFEROR     CODE
	 	  FACILITY	 	 	 	18a. PAYMENT WILL BE MADE BY	CODE  	 	 
	
       
	 	 	 	 	 	 	 
	
      Akorn, Inc.

2500 Milbrook Road

Buffalo Grove, IL 60089

	 	 	 	 SEE BLOCK 9
	
       
	 	 	 	 
	
       
	 	 	 	 
	
      TELEPHONE:
	 	 	 	EFT: T     
	
      o 17b.  CHECK IF REMITTANCE IS DIFFERENT AND PUT SUCH ADDRESS IN OFFER
	18b.  SUBMIT INVOICES TO ADDRESS SHOWN IN BLOCK 18a UNLESS BLOCK BELOW IS CHECKED: o SEE ADDENDUM
	 	 	 	 	 	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
      19.

ITEM NO,
	 	20.

SCHEDULE OF SUPPLIES/SERVICES	 	 	21.

QUANTITY	 	22.

UNIT	23.

UNIT PRICE	 	 	24.

AMOUNT
	
       
	 	
TITLE: Acquisition of Ca DTPA & Zn DTPA (Calcium and Zinc Diethylenetriaminepentaacetate) to support a public health emergency response to a radiological or nuclear event	 	 	 	 	 	SEE PAGE 2
FOR SCHEDULE	 	 	 
	
       
	 	 	 	 	 	 	 	 	 	 	 
	
       
	 	 	 	 	 	 	 	 	 	 	 
	
       
	 	 	 	 	 	 	 	 	 	 	 
	
       
	 	(Attach Continuation Sheet as Necessary)	 	 	 	 	 	 	 	 	 
	
      25. ACCOUNTING AND APPROPRIATION DATA
	 	 	 	 	 	 	26.TOTAL AWARD AMOUNT (For Govt. Use Only)
	See Section G.1	 	 	 	 	 	 	$21,930,000.00
	
      x 27a. SOLICITATIONS INCORPORATE BY REFERENCE  FAR 52.212-1, 52.212-4.  FAR 52.212-3 AND 52.212-5 ARE ATTACHED.   ADDENDA x ARE      o ARE NOT ATTACHED.

	
      o 27b. CONTRACTS/PURCHASE ORDERS INCORPORATE BY REFERENCE  FAR 52.212-4.  FAR 52.212-5  IS ATTACHED.   ADDENDA o ARE      o ARE NOT ATTACHED.

	 	 	 	 	 	 	 	 
	28.
X
	 	CONTRACTOR IS REQUIRED TO SIGN THIS DOCUMENT AND RETURN ___2___
COPIES TO ISSUING OFFICE. CONTRACTOR AGREES TO FURNISH AND
DELIVER ALL ITEMS SET FORTH OR OTHERWISE IDENTIFIED ABOVE AND ON
ANY ADDITIONAL SHEETS SUBJECT TO THE TERMS AND CONDITIONS
SPECIFIED HEREIN.
	 	 	29.

o	 	AWARD OF CONTRACT: REFERENCE                     
OFFER DATED                     . YOUR OFFER ON
SOLICITATION (BLOCK 5), INCLUDING ANY ADDITIONS OR
CHANGES WHICH ARE SET FORTH HEREIN, IS ACCEPTED AS
TO ITEMS:

	 	 	 	 	 	 	 	 
	30a. SIGNATURE OF OFFEROR/CONTRACTOR

/s/ Arthur S. Przybyl	 	 	31a. UNITED STATES OF AMERICA (SIGNATURE OF CONTRACTING OFFICER)

/s/ David K. Beck

	 	 	 	 	 	 	 	 
	30b. NAME AND TITLE OF SIGNER (TYPE OR PRINT)	 	30c. DATE SIGNED	 	 	31b. NAME OF CONTRACTING OFFICER	 	31c. DATE SIGNED
	 	 	 	 	 	 	 	 
	Arthur S. Przybyl, President and CEO	 	December 27, 2005	 	 	David K. Beck	 	12/30/05

						
	32a. QUANTITY IN COLUMN 20 HAS BEEN	33. SHIP NUMBER	 34. DO VOUCHER NUMBER	35. AMOUNT VERIFIED

       CORRECT FOR
	 	    |   PARTIAL   |    |    FINAL	 	 
	o RECEIVED	o INSPECTED	
    o ACCEPTED, AND CONFORMS TO THE

     CONTRACT, EXCEPT AS NOTED
    	36. PAYMENT

o COMPLETE          o PARTIAL          o FINAL
	37. CHECK NUMBER

						
	32b. SIGNATURE OF AUTHORIZED GOVT. REPRESENTATIVE	32c. DATE	38. S/R ACCOUNT NUMBER

	39. S/R VOUCHER NUMBER	40. PAID BY
	 	 	42a. RECEIVED BY (Print)	 
	41a. I CERTIFY THIS ACCOUNT IS CORRECT AND PROPER FOR PAYMENT	 	 
	41b. SIGNATURE AND TITLE OF CERTIFYING OFFICER	41c. DATE	42b.  RECEIVED AT (Location)

	 
	 	 	42c. DATE REC’D (YY/MM/DD)

	42d. TOTAL CONTAINERS	 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 
	 	 	REFERENCE NO. OF DOCUMENT BEING CONTINUED
	 	 	PAGE
	 	 	 	 	 
	 	CONTINUATION SHEET
	 	 	HHSO100200500008C
	 	 	 	 	 	 	 	2	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 

	 	NAME OF OFFEROR OR CONTRACTOR
	 	 	 
	 	 	 	 	 
	 	Akorn Inc.
	 	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	ITEM NO.
	 	 	SUPPLIES/SERVICES
	 	 	QUANTITY
	 	 	UNIT
	 	 	UNIT PRICE
	 	 	AMOUNT
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	SECTION B—SUPPLIES/SERVICES
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	(Items 0001 to 0003 are included in the initial award of the contract)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	0001	 	 	 	Ca-DTPA 200 mg/ml, 5 ml single dose Ampoules per the SOW
(including storage for up to 3 months)
See requirement 1
	 	 	 	390,000	 	 	 	Amp.	 	 	$	48.60	 	 	 	$	18,954,000.00	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	0002	 	 	 	Zn-DTPA 200 mg/ml, 5 ml single dose Ampoules per the SOW
(including storage for up to 3 months)
See Requirement 1
	 	 	 	60,000	 	 	 	Amp.	 	 	$	49.60	 	 	 	$	2,976,000.00	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	0003	 	 	 	Potency and Stability Testing of finished Ca-DTPA and Zn-DTPA
	 	 	 	1	 	 	 	job	 	 	Not	 	 	NSP	 
	 	 	 	 	 	 	See Requirement 2a and 2b
	 	 	 	 	 	 	 	 	 	 	 	 	Separately	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	Priced (NSP)	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	(Items 0004 to 0008 are options that may be exercised by the
	 	 	Up To	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Government during the period from award of the contract to five
years after award. Item 0009 is an option that may be exercised up
to 10 years after award. )
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	0004	 	 	 	Storage of Product (Fixed Unit Price per pallet per month)
	 	 	 	26 X 12	 	 	 	pallet	 	 	$	104.00	 	 	 	$	32,448.00	 	 
	 	 	 	 	 	 	See Requirement 3
	 	 	 	 	 	 	 	/month	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	0005	 	 	 	Shipping of Product (Fixed Unit Price per pallet)
	 	 	 	26	 	 	 	Pallet	 	 	NSP	 	 	NSP	 
	 	 	 	 	 	 	See Requirement 3
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	0006	 	 	 	Disposition of Product (Fixed Unit Price per pallet)
	 	 	 	26	 	 	 	Pallet	 	 	NSP	 	 	NSP	 
	 	 	 	 	 	 	See Requirement 5
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	0007	 	 	 	Option for Additional Purchases of Ca DTPA
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	A. Price for units delivered 12-24 months after contract award
	 	 	 	500,000	 	 	 	Amp.	 	 	$	58.36	 	 	 	$	29,180,000.00	 	 
	 	 	 	 	 	 	B. Price for units delivered 25-36 months after contract award
	 	 	 	500,000	 	 	 	Amp.	 	 	$	61.57	 	 	 	$	30,785,000.00	 	 
	 	 	 	 	 	 	C. Price for units delivered 37-48 months after contract award
	 	 	 	500,000	 	 	 	Amp.	 	 	$	65.58	 	 	 	$	32,790,000.00	 	 
	 	 	 	 	 	 	D. Price for units delivered 49-60 months after contract award
	 	 	 	500,000	 	 	 	Amp.	 	 	$	70.49	 	 	 	$	35,245,000.00	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	0008	 	 	 	Option for Additional Purchases of Zn DTPA
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	A. Price for units delivered 12-24 months after contract award
	 	 	 	500,000	 	 	 	Amp.	 	 	$	58.36	 	 	 	$	29,180,000.00	 	 
	 	 	 	 	 	 	B. Price for units delivered 25-36 months after contract award
	 	 	 	500,000	 	 	 	Amp.	 	 	$	61.57	 	 	 	$	30,785,000.00	 	 
	 	 	 	 	 	 	C. Price for units delivered 37-48 months after contract award
	 	 	 	500,000	 	 	 	Amp.	 	 	$	65.58	 	 	 	$	32,790,000.00	 	 
	 	 	 	 	 	 	D. Price for units delivered 49-60 months after contract award
	 	 	 	500,000	 	 	 	Amp.	 	 	$	70.49	 	 	 	$	35,245,000.00	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	0009	 	 	 	Additional Potency and Stability Testing of finished Ca-DTPA and Zn-
DTPA at the following months:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	A. 72 months
	 	 	 	1	 	 	 	Job	 	 	$	100,000.00	 	 	 	$	100,000.00	 	 
	 	 	 	 	 	 	B. 84 months
	 	 	 	1	 	 	 	Job	 	 	$	100,000.00	 	 	 	$	100,000.00	 	 
	 	 	 	 	 	 	C. 96 months
	 	 	 	1	 	 	 	Job	 	 	$	100,000.00	 	 	 	$	100,000.00	 	 
	 	 	 	 	 	 	D. 108 months
	 	 	 	1	 	 	 	job	 	 	$	100,000.00	 	 	 	$	100,000.00	 	 
	 	 	 	 	 	 	E. 120 months
	 	 	 	1	 	 	 	job	 	 	$	100,000.00	 	 	 	$	100,000.00	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
																												

	 	 	 
	NSN 7540-01-152-8067

	 	OPTIONAL FORM 336 (4-86)
	 

	 	Sponsored by GSA
	 

	 	FAR (48 CFR) 53.11

			
	 	 	 
	HHSO100200500008C
	 	2

 

B.1. Brief description of supplies or services

To provide countermeasures to protect civilian populations at risk of internal exposure to
particulate transuranic radioactive material from a radiological or nuclear event.

B.2 Option for Additional Purchases (Items 0007 and 0008)

The USG may exercise options to purchase up to 500,000 additional doses of Ca-DTPA (Pentetate
Calcium Trisodium Injection Sterile Solution) 200 mg/ml, 5ml single-use ampoule and up to 500,000
additional doses of Zn-DTPA (Pentetate Zinc Trisodium Injection Sterile Solution) 200 mg/ml, 5ml
single-dose Ampoules of the product during the first five years of the contract at the unit price
specified in the contract.

Section C — Description/Specification/Work Statement

C.1 Background: The National Response Plan of the Department of Homeland Security designates
the Department of Health and Human Services (HHS) as the lead agency for public health and medical
response to manmade or natural disasters. In 2002, the Office of Public Health Emergency
Preparedness (OPHEP) was established. This office is responsible for the implementation of a
comprehensive HHS strategy to protect the public from, and be prepared to respond to acts of
bioterrorism and other public health emergencies threatening the civilian population. The Office of
Research and Development Coordination (ORDC) within OPHEP has the primary responsibility to
contract for large-scale manufacturing and delivery of licensable products or approvable (through
Food and Drug Administration defined regulatory pathways) to the Strategic National Stockpile (SNS)
in preparation for response to a public health emergency.

C.2. Introduction: The USG has identified a requirement for medical countermeasures to protect
civilian populations at risk of internal exposure to particulate transuranic radioactive material
from radiological or nuclear event. Particulate radiation associated with transuranic elements is a
distinctly different clinical problem from penetrating radiation as these particles can be
internalized through inhalation, ingestion, or wound contamination. Radionuclides in these
particles can then be absorbed, transported via the blood and later incorporated into
physiologically compatible organs such as bone and liver in a time-dependent manner. This process
constitutes a health hazard because the radionclides emit ionizing radiation to surrounding
tissues, which may result in cell death, organ dysfunction, fibrosis, and malignancy. Ca-DTPA and
Zn-DTPA are chelators used to treat internal contamination with radioactive isotopes of plutonium,
americium, or curium. Chelators are compounds that react with metals to form stable ionic
complexes, facilitating urinary clearance of the metal-chelator complex. Ca-DTPA and Zn-DTPA will
be used to facilitate excretion of absorbed transuranic radionuclides in victims who are exposed
through contamination resulting from, for example the detonation of a radiological dispersal device
(RDD) or improvised nuclear device (IND), aerosol exposure to radioisotopes from a terrorist attack
against stored radioactive material.

C.3. Current Vulnerabilities: Civilian populations are at risk of internal exposure to particulate
transuranic radioactive material from a radiological or nuclear event.

Treatment using these chelators typically involves treatment with a single dose of Ca-DTPA followed
by treatment on subsequent days using Zn-DTPA. Treatment is most effective when it begins within 24
hours after exposure. (FDA’s label states: “The chelating capacity of Ca-DTPA is greatest
immediately and up to 24 hours after internal contamination...”). There are a variety of treatment
regimens dictating how many doses of Zn-DTPA should be provided and on what schedule.
Recommendations for treating children, pregnant women, nursing mothers, and the elderly also exist.

3

 

Statement of Work (SOW)

Acquisition of Ca-DTPA and Zn-DTPA

(Calcium and Zinc Diethylenetriaminepentaacetate)

to support a public health emergency response to a radiological or nuclear event

C.4. SCOPE OF WORK

1.) Summary of Requirements

Independently, and not as an agent of the USG, the Contractor shall furnish all the necessary
services, qualified personnel, materials, supplies, equipment, facilities, transportation and
travel not otherwise provided by the USG as required to:

	a.	 	Manufacture under cGMP 390,000 doses of Ca-DTPA (Pentetate Calcium Trisodium Injection
Sterile Solution) at 200 mg/ml, in 5ml single-dose ampoules for delivery to the Strategic
National Stockpile (SNS).
	 
	b.	 	Manufacture under cGMP 60,000 doses of Zn-DTPA (Pentetate Zinc Trisodium Injection
Sterile Solution) at 200 mg/ml, in 5ml single-dose ampoules for delivery to the SNS.
	 
	c.	 	Submit to FDA sufficient supporting data for extension of the expiry to 60 months at
the earliest opportunity to New Drug Applications (NDAs) 21-749 and 21-751, in accordance
with agreements reached with FDA. In addition, the Contractor agrees to continue to
monitor stability through 60 months and to submit data in the annual report to both NDA
21-749 and NDA 21-751 providing for extension of the expiry on an annual basis. If options
are exercised by the Government, extend these studies and reporting for up to 120 months.
	 
	d.	 	Conduct quality control/quality assurance monitoring and subsequent reporting necessary
to insure appropriate storage conditions of the product while the product is in storage
under the Contractors control. These conditions are intended to support a 60 month
shelf-life of the product.
	 
	e.	 	Store product at a contractor facility until notification by the Project Officer and
until possession is taken by the SNS. The Contractor may be required to store drug product
at its own facility for up to 3 months as part of the price of CLINS 0001 and 0002. The SNS
will contact the Contractor through the Project Officer when it becomes necessary to
transfer the product to a USG storage facility and will provide instructions to the
Contractor to facilitate this transfer.
	 
	f.	 	Execute product disposition directions provided by the Project Officer.

2.) Specific Technical Requirements

The Contractor shall perform the work required to manufacture and deliver the FDA approved
Ca-DTPA and Zn-DTPA to the SNS in accordance with the requirements outlined below.

Requirement
1—Ca-DTPA and Zn-DTPA Production and cGMP Compliance

	a.	 	The Contractor shall conduct cGMP manufacture of 390,000 doses of Ca-DTPA (Pentetate
Calcium Trisodium Injection Sterile Solution) at 200 mg/ml, in 5ml single-use ampoules.
These individual ampoules will be packed in boxes of 10 ampoules and these boxes will be
packed in cases of 800 ampoules.

4

 

	b.	 	The Contractor shall conduct cGMP manufacture of 60,000 doses of Zn-DTPA (Pentetate
Zinc Trisodium Injection Sterile Solution) at 200 mg/ml, in 5 ml single-use ampoules. These
individual ampoules will be packed in boxes of 10 ampoules and these boxes will be packed
in cases of 800 ampoules.
	 
	c.	 	The Contractor shall provide information, data, and reports as required by the Project
Officer in order to facilitate review of contract activities by the USG and their
consultants. The Contractor will coordinate with the USG and their consultants to execute
site visits to audit the Contractor for compliance to cGMP; Security; and other
contractual; requirements as appropriate, and to perform site visit audits of the
manufacturing facility prior to production of the SNS lots and throughout the life of the
contract. These site visits are different from FDA inspections.
	 
	d.	 	The Contractor shall provide an operational plan detailing the practical aspects of
labeling, carton and shipping packaging to the Project Officer with the technical proposal.
The Contractor shall also provide a plan for labeling the product for the 120 month shelf
life as approved by the FDA.
	 
	e.	 	The Contractor shall provide primary and secondary points of contact that will be
available 24 hours per day, 7 days per week to respond as necessary to a public health
emergency as directed by the Project Officer.
	 
	f.	 	The Contractor shall provide all previous FDA GMP inspection reports (FDA 483 form) and
any follow-up correspondence between Hameln Pharmaceuticals, GmbH (Hameln, Germany) and FDA
concerning those inspections with their technical proposal of the manufacturer’s production
facility.
	 
	g.	 	The Contractor shall provide any information if requested by the FDA to enable FDA/CDER
to schedule and to execute a cGMP inspection to review the manufacturing facility prior to
and/or during production of the USG lots.

Requirement 2—Potency and Stability Testing of Finished Ca-DTPA and Zn-DTPA.

	a.	 	Submit sufficient supporting data for extension of the expiry to 60 months at the
earliest opportunity to NDAs 21-749 and 21-751, in accordance with agreements reached with
FDA. In addition, the Contractor agrees to continue to monitor stability through 60 months
and to submit data in the annual report to both NDA 21-749 and NDA 21-751 providing for
extension of the expiry on an annual basis.
	 
	b.	 	The Contractor shall conduct stability studies per the protocol and commitments
outlined in NDAs 21-749 and 21-751, including potency testing, on the Bulk Drug Substance
lots and Final Drug Product (FDP) stored by the manufacturer or its representative.
Stability test results will support product expiration dating and testing will be performed
in accordance with current FDA Regulatory Guidelines or a stability protocol approved in
the NDA.
	 
	c.	 	The Contractor shall continue to perform requirements 2a and 2b for expiration dating
through 72, 84, 96, 108, and 120 months, as exercised by the government.

5

 

Requirement 3—Storage of Product and Shipment to the SNS.

	a.	 	The Contractor shall assume responsibility for the cost of shipping the finished
product once the Project Officer has directed the transfer of product to the SNS or other
site(s) for long-term storage. The Contractor shall assume an estimated shipping distance
of 1200 miles for all shipments of finished product. The USG will assume responsibility for
the cost of finished product long-term storage and emergency distribution of the finished
product. The product shall remain in storage at the manufacturer or its representative
facility until delivery of the finished product to the SNS.
	 
	b.	 	The Contractor shall ensure that the delivery of the drug products follows cGMP
procedures to maintain the integrity of the product en route. The manufacturer or its
representative shall perform/execute all necessary pilot transfers validate the shipping
method that will be used for delivery to the SNS, and write Standard Operating Procedures
(SOPs) in accordance with such validation, prior to first shipment of product. The
Contractor shall file the necessary documentation to the FDA/CDER to demonstrate compliance
with the SOPs for the safe movement of the product and shall include any protocol
deviations en route.
	 
	c.	 	The Contractor shall be responsible for the secure and segregated storage of held FDP
prior to lot release and subsequent shipment to the USG. The Contractor may also be
required to store FDP at its own facility for up to 3 months at no additional cost to the
USG. The Contractor may propose a delivery schedule that may not exceed 1 delivery per
month. Thirty days advance notice is required prior to shipment to the SNS or designated
cities.

Requirement 4—Security of Contract Operations and Information Technology Security

	 	 	The work performed for development, manufacturing, transport, storage and distribution will
be performed under a detailed security plan that ensures against theft, tampering or
destruction of the specific pertinent documents, information and data. The Contractor shall
develop a written Draft Security Plan, for the protection of physical facilities, using, for
example, fencing, controlled access, surveillance equipment, 2-person integrity rule, tamper
evident packaging, and armed guards. The Contractor shall submit the Draft Security Plan to
the Contracting Officer and Project Officer with the Technical Proposal. The Draft Security
Plan shall describe the procedures to be utilized to manage and monitor the general internal
operations of the firm and a description of Offeror’s facility(ies) in which the work will
be performed and related activity conducted, including work by any subcontractors and
consultants. The Draft Security Plan shall also include the Contractor’s procedures for
screening and background investigations of all employees, subcontractors and consultants who
have access to the development, manufacturing, transport, storage, and distribution of the
product. Such background inquiries and screening should include, but not be limited to,
education, previous employment, fingerprints and complete criminal history (FBI, state, and
local), credit reports, civil actions, DMV, social security account number verification,
drug testing, and references. Screening data should include the employee’s full name, any
aliases, date of birth, and Social Security numbers and other identifying numbers as
appropriate, e.g., Passport number. USG can audit and review at its discretion the
Contractor’s personnel records in order to confirm compliance with personnel screening and
background investigation requirements. Such access will also include interviews with
relevant Contractor human resources supervisory and hiring personnel.

6

 

	 	 	The Draft Security Plan shall ensure confidentiality and integrity of and timely access by
authorized individuals to data, information and information technology systems, consistent
with OMB Circular A-130, Appendix III, “HHS Information Security Program Policy, July 19,
2005.” This plan should also address the Contractor’s security-related due diligence on
public information, marketing, advertising, including use of web site[s] impacting product
and supply chain security. This plan shall include the security measures to be used to
protect the medical countermeasure to be stored at the Contractor’s facility (e.g.,
refrigeration/freezer alarm systems, backup electrical power generator systems, etc.), and
the contingency plan to accommodate any manufacturing and storage problems caused by natural
or man-made disasters, power loss, refrigerant loss, equipment failures, etc.
	 
	 	 	The Project Officer and the Information Protection and Systems Security (IPASS) Coordinator
will review the plan and submit comments to the Contractor within 30 days after receipt.
The Contractor shall revise the Security Plan, if required, and submit a Final Security Plan
to the Government within 30 days after receipt of the Government’s comments. Performance of
work under this contract shall be in accordance with this written Final Security Plan.

Requirement 5 — Disposition of Product Inventory.

	 	 	Upon expiration or termination (including partial termination) of this contract, the USG may
effect final disposition of any USG-purchased drug product in storage at the manufacturer or
its representative facility or in the SNS, for example the USG may elect to direct the
manufacturer or its representative to destroy all USG-purchased drug product in the
Contractors possession. Methods of disposition may vary from the one listed above. Due to
the uncertainty involved, prices for product disposition, whether identified above in this
requirement or otherwise proposed, will be negotiated as needed and incorporated into the
contract via modification.

C.5. Additional Requirements

1. Future purchases. The USG may exercise options to purchase up to 500,000 additional doses of
Ca-DTPA (Pentetate Calcium Trisodium Injection Sterile Solution) at 200 mg/ml, in 5ml single-use
ampoule and up to 500,000 doses of Zn-DTPA (Pentetate Zinc Trisodium Injection Sterile Solution) at
200 mg/ml, in 5ml single-dose ampoules of the product during the first five years of the contract
at the unit price specified in the contract.

2. The USG may request the Contractor to store the drug product for a period of 1 year at a site
that meets the USG’s security requirements.

3. Payment: Payment will only be made upon inspection and acceptance by the USG of a FDA
approved Ca-DTPA and Zn-DTPA drug to treat internal contamination from radioactive elements from
radiological and nuclear events. The Contractor may propose a delivery schedule that may not
exceed 1 delivery per month. Thirty days advance notice is required prior to shipment to the SNS or
designated cities. Inspection will occur within 30 days of Contractor’s notification.

4. The offerors shall submit to FDA, with a copy to the project officer, an adequate plan to
collect post-marketing data. (See Phase 4 commitments in NDA approval letters.) .

7

 

C.6. Reporting Requirements

The Contractor shall submit to the Contracting Officer and to the Project Officer technical
progress reports covering the work accomplished during each reporting period. These reports are
subject to the technical inspection and requests for clarification by the Project Officer. These
shall be brief and factual and prepared in accordance with the following guidance.

On the fifteenth day of each month for the previous calendar month, the Contractor shall submit a
Monthly Technical Progress Report to the Project Officer and the Contracting Officer. A monthly
report will not be required for the period when the final report is due. The Contractor shall
submit one copy of the Monthly Progress Report electronically via e-mail. Any attachments to the
e-mail report shall be submitted in Microsoft Word, Excel, Project or compatible versions. Such
reports shall include the following specific information, the contract number and title, the period
of performance being reported, the Contractor’s name and address, the author(s), and the date of
submission. The report shall detail, document, and summarize the results of work done during the
period covered, including problems encountered and corrective actions taken. An explanation of any
difference between planned progress and actual progress, why the differences have occurred, and if
behind planned progress, what corrective steps are planned. The project plan and schedule, with
accompanying Gantt chart, will be updated in each Monthly Report.

The Monthly Technical Progress Report shall detail, document, and summarize the results of work
done during the period covered to include as appropriate but not be limited to:

	 	•	 	Title page containing Technical Progress Report, the contract number and title, the
period of performance or milestones being reported, the contractor’s name, address, and
other contract information, the author(s), and date of submission.
	 
	 	•	 	Introduction/Background — An introduction covering the purpose and scope of the
contract effort.
	 
	 	•	 	Progress — The report shall detail, document, and summarize the results of work
performed, test results, and milestones achieved during the period covered. Also to be
included is a summary of work planned for the next reporting period.
	 
	 	•	 	Issues — Issues resolved, new issues and outstanding issues are enumerated with options
and recommendations for resolution. An explanation of any difference between planned
progress and actual progress, why the differences have occurred, and, if project activity
is delinquent, then what corrective steps are planned and revised timelines.
	 
	 	•	 	Security assessment, problems and recommendations.
	 
	 	•	 	FDA inspections and consultations results (oral or written).
	 
	 	•	 	Inventory report of total number of drug product in storage.
	 
	 	•	 	Invoices — Summary of any invoices submitted during the reporting period.
	 
	 	•	 	Action Items — Summary table of activities or tasks to be accomplished by a certain
date and by whom.
	 
	 	•	 	Distribution List — A list of persons receiving the Technical Progress report.
	 
	 	•	 	Attachments — Results on the project are provided as attachments.

The Executive Summary, which shall accompany each Technical Progress Report, will be formatted in
Microsoft Power Point presentations and include the following:

	 	•	 	Project Progress presented as milestone events, test results, tasks, and other
activities achieved during the reporting period as talking point bullets
	 
	 	•	 	Project Issues presented headings and each item as a talking point bullet.

The Project Officer will review and notify the Contractor of needed changes or problems, within 30
days of receipt by the Project Officer.

8

 

Final Reports — By the expiration date of the contract, the Contractor shall submit a
comprehensive Final Report that shall detail, document, and summarize the results of the entire
contract work. The report shall explain comprehensively the results achieved. A draft Final Report
will be submitted to the Project Officer for review and revision, then the original, four copies,
and an electronic file containing the Final Report with revisions shall be submitted to the Project
officer for distribution to the Contracting Officer and the Program Staff.

C. 7. Meetings and Conferences

The Contractor shall participate in a monthly conference call and other calls to be arranged by the
Project Officer as deemed necessary to coordinate and oversee the contracting effort. Such
conference calls may include, but are not limited to, technical, regulatory, and ethical aspects of
the program.

Section D and E — Reserved

Section F — Deliveries or Performance

F. 1. Deliverables

The following are considered deliverables under this contract.

	 	1.	 	The Contractor shall manufacture under cGMP 390,000 doses of Ca-DTPA (Pentetate Calcium
Trisodium Injection Sterile Solution) at 200 mg/ml, in 5ml single-dose ampoules for
delivery to the SNS. The USG requires all FDP to be delivered within 1 year of contract
execution date. Drug product accepted by the USG for the Strategic National Stockpile
(SNS) shall have 120 months of labeled expiry dating (November 2014 or later). (See
Requirement 1)
	 
	 	2.	 	The Contractor shall manufacture under cGMP 60,000 doses of Zn-DTPA (Pentetate Zinc
Trisodium Injection Sterile Solution) at 200 mg/ml, in 5ml single-dose ampoules for
delivery to the SNS. The USG requires all FDP to be delivered within 1 year of contract
execution date. Drug product accepted by the USG for the SNS shall have 120 months of
labeled expiry dating (November 2014 or later). (See Requirement 1)
	 
	 	3.	 	Under Item 0003 the Contractor shall submit sufficient supporting data for extension of
the expiry to 60 months at the earliest opportunity to NDA 21-749 and NDA 21-751, in
accordance with agreements reached with FDA. In addition, the Contractor agrees to continue
to monitor stability through 60 months and to submit data in the annual report to both NDA
21-749 and NDA 21-751 providing for extension of the expiry on an annual basis. If options
are exercised by the Government, the Contractor shall extend these studies and reporting
for up to 120 months. (See Requirement 2)
	 
	 	4.	 	Under Item 0004 the Contractor shall conduct quality control/quality assurance
monitoring and subsequent reporting necessary to insure appropriate storage conditions of
the product while the product is in storage under the Contractors control. These
conditions are intended to support a 60 month shelf-life of the product or 120 months, if
options are exercised by the Government.

9

 

F.2 Inventory Reports

The Contractor shall provide the Project Officer with monthly inventory summaries of all Ca-DTPA
and Zn-DTPA in storage. Inventories reported shall be current as of the last working day of the
month, and shall be submitted within 15 days following the end of the month, unless otherwise
directed. The report shall provide the following information for each vaccine lot:

Lot Number

Expiration Date

Number of Doses

SECTION G — CONTRACT ADMINISTRATION DATA

G.1. Accounting and Appropriation Data

Funds are not currently available. This contract includes the Availability of Funds clause, FAR
52.232-18 (Apr 1984).

SECTION
H — SPECIAL CONTRACT REQUIREMENTS

H.1. Risk of Loss

Under paragraph (j) of FAR clause 52.212-4, risk of loss of or damage to vaccine under Items 0001
and 0002, and, if exercised, optional Items 0007 and 0008 shall pass to the Government upon
acceptance by the Government, except to the extent provided in FAR 52.212-4(a) regarding
nonconforming items. The Contractor remains responsible for ensuring that during the Contractor’s
storage and shipping of accepted items that they remain in compliance with FDA cGMP guidelines. In
the event that the Contractor or its subcontractor fails to comply with FDA cGMP guidelines for
storage and shipping of accepted items, the Contractor shall replace those units of DTPA not stored
or shipped in compliance with FDA guidelines.

H.2. Replacement of Product

If data as provided by stability testing from Hameln Pharma at anytime does not support a ten-year
shelf life for any batch of DTPA, Akorn shall replace the affected batch at no additional cost to
the U.S. Government. The replacement shall include shipping to any U.S. Government-designated
storage locations within the continental U.S. The replacement shall have been manufactured within
12 months of the decision to replace the earlier delivered batch. The requirement for stability
testing shall apply to the replacement. However, if stability testing data for the replacement
does not support a ten-year shelf life, the Contractor is not required to replace that batch due to
the stability testing data failing to support a ten-year shelf life.

H.3. Discount

The Contractor’s invoices shall include a discount of two (2) percent for payment within 30 days of
invoicing. (See description of dates for applying discount in FAR clause 52.212-4(i)(4).)

10

 

SECTION I — CONTRACT CLAUSES

I.1. Commercial Item Clauses-Incorporated by Reference

This contract incorporates the following clauses by reference, with the same force and effect as if
they were given in full text. Upon request, the Contracting Officer will make their full text
available. Also, the full text of a clause may be accessed electronically at this address:
http://www.arnet.gov/far/.

FEDERAL ACQUISITION REGULATION (FAR) (48 CHAPTER 1) CLAUSES

52.212-1, Instructions to Offerors-Commercial Items (Jan 2005)

52.212-4, Contract Terms and Conditions-Commercial Items (Oct 2003)

52.247-30, FOB Origin, Contractor’s Facility (Apr 1984)

I.2. 52.212-4 Addendum

A. PACKAGING

Packaging shall be consistent with the FDA approved labeling and packaging for this product.

B. CONTRACTING OFFICER (Jul 1999)

(1) The Contracting Officer is the only individual who can legally commit the Government to the
expenditure of public funds. No person other than the Contracting Officer can make any changes
to the terms, conditions, general provisions or other stipulations of this contract.

(2) No information, other than that which may be contained in an authorized modification to this
contract, duly issued by the Contracting Officer, which may be received from any person employed
by the United States Government, or otherwise, shall be considered grounds for deviation from any
stipulation of this contract.

C. PROJECT OFFICER

The following Project Officer(s) will represent the Government for the purpose of this contract:

William Hummer, M.S.

The Project Officer is responsible for: (1) monitoring the Contractor’s technical progress,
including the surveillance and assessment of performance and recommending to the Contracting
Officer changes in requirements; (2) interpreting the statement of work and any other technical
performance requirements; (3) performing technical evaluation as required; (4) performing technical
inspections and acceptances required by this contract; and (5) assisting in the resolution of
technical problems encountered during performance.

The Contracting Officer is the only person with authority to act as agent of the Government under
this contract. Only the Contracting Officer has authority to: (1) direct or negotiate any changes
in the

11

 

statement of work; (2) modify or extend the period of performance; (3) change the delivery
schedule; (4) authorize reimbursement to the Contractor any costs incurred during the performance
of this contract; or (5) otherwise change any terms and conditions of this contract.

The Government may unilaterally change its Project Officer designation.

D. NOTICE PRIOR TO PUBLICATION

The Contractor shall not release any reports, manuscripts, press releases, or abstracts about the
work being performed under this contract without written notice in advance to the Government.

E. PRESS RELEASES

	1.	 	Pursuant to Public Law(s) cited in paragraph (2), below, the contractor shall clearly state,
when issuing statements, press releases, requests for proposals, bid solicitations and other
documents describing projects or programs funded in whole or in part with Federal money: the
percentage of the total costs of the program or project which will be financed with Federal
money; the dollar amount of Federal funds for the project or program; and the percentage and
dollar amount of the total costs of the project or program that will be financed by
nongovernmental sources.

	 	 	 	 	 	 	 	 	 
	2.

	 	Public Law and Section No.
	 	Fiscal Year
	 	Period Covered
	 
	 	 	 	 	 	 	 	 
	 

	 	P.L. 108-447,

Title V — General Provisions, Section 506
	 	 	2005	 	 	10/1/04 — 9/30/05

F. REPORTING MATTERS INVOLVING FRAUD, WASTE AND ABUSE

Anyone who becomes aware of the existence or apparent existence of fraud, waste and abuse in NIH
funded programs is encouraged to report such matters to the HHS Inspector General’s Office in
writing or on the Inspector General’s Hotline. The toll free number is 1-800-HHS-TIPS
(1-800-447-8477). All telephone calls will be handled confidentially. The e-mail address is
Htips@os.dhhs.gov and the mailing address is:

Office of Inspector General

Department of Health and Human Services

TIPS HOTLINE

P.O. Box 23489

Washington, D.C. 20026

I.3. 52.212-3 Offeror Representations and Certifications-Commercial Items (March 2005).

I.4. DEPARTMENT OF HEALTH AND HUMAN SERVICES ACQUISITION REGULATION (HHSAR) (48 CFR CHAPTER 3)
CLAUSES

12

 

	 	 	 	 	 
	HHSAR	 	 	 	 
	Clause No.	 	Date	 	Title
	 
	 	 	 	 
	352.202-1

	 	Jan 2001
	 	Definitions
	 
	 	 	 	 
	352.232-9

	 	Apr 1984
	 	Withholding of Contract Payments
	 
	 	 	 	 
	352.270-4

	 	Jan 2001
	 	Pricing of Adjustments
	 
	 	 	 	 
	352.270-6

	 	Jul 1991
	 	Publication and Publicity
	 
	 	 	 	 
	352.270-7

	 	Jan 2001
	 	Paperwork Reduction Act

I.5. 52.212-5 Contract Terms and Conditions Required to Implement Statutes or Executive Orders-Commercial Items (Jul 2005)

Contract Terms and Conditions Required to Implement Statutes or Executive Orders—Commercial Items
(July 2005)

(a) The Contractor shall comply with the following Federal Acquisition Regulation (FAR) clauses,
which are incorporated in this contract by reference, to implement provisions of law or Executive
orders applicable to acquisitions of commercial items:

(1) 52.233-3, Protest After Award (Aug 1996) (31 U.S.C. 3553).

(2) 52.233-4, Applicable Law for Breach of Contract Claim (Oct 2004) (Pub. L. 108-77,
108-78)

(b) The Contractor shall comply with the FAR clauses in this paragraph (b) that the Contracting
Officer has indicated as being incorporated in this contract by reference to implement provisions
of law or Executive orders applicable to acquisitions of commercial items:

[Contracting Officer check as appropriate.]

	þ	 	(1) 52.203-6, Restrictions on Subcontractor Sales to the Government (Jul 1995), with Alternate I (Oct 1995) (41 U.S.C.
253g and 10 U.S.C. 2402).
	 
	o	 	(2) 52.219-3, Notice of Total HUB Zone Set-Aside (Jan 1999) (15 U.S.C. 657a).
	 
	o	 	(3) 52.219-4, Notice of Price Evaluation Preference for HUB Zone Small Business Concerns (July 2005) (if the
offeror elects to waive the preference, it shall so indicate in its offer) (15 U.S.C. 657a).
	 
	o	 	(4) (i) 52.219-5, Very Small Business Set-Aside (June 2003) (Pub). L. 103-403, section 304, Small Business
Reauthorization and Amendments Act of 1994).
	 
	 	 	o (ii) Alternate I (Mar 1999) of 52.219-5.
	 
	 	 	o (iii) Alternate II (June 2003) of 52.219-5.
	 
	o	 	(5) (i) 52.219-6, Notice of Total Small Business Set-Aside (June 2003) (15 U.S.C. 644).
	 
	 	 	o (ii) Alternate I (Oct 1995) of 52.219-6.
	 
	 	 	o (iii) Alternate II (Mar 2004) of 52.219-6.
	 
	o	 	(6) (i) 52.219-7, Notice of Partial Small Business Set-Aside (June 2003) (15 U.S.C. 644).
	 
	 	 	o (ii) Alternate I (Oct 1995) of 52.219-7.
	 
	 	 	o (iii) Alternate II (Mar 2004) of 52.219-7.
	 
	þ	 	(7) 52.219-8, Utilization of Small Business Concerns (May 2004) (15 U.S.C. 637(d) (2) and (3).
	 
	o	 	(8) (i) 52.219-9, Small Business Subcontracting Plan (July 2005) (15 U.S.C. 637(d) (4).
	 
	 	 	o (ii) Alternate I (Oct 2001) of 52.219-9.
	 
	 	 	o (iii) Alternate II (Oct 2001) of 52.219-9.
	 
	o	 	(9) 52.219-14, Limitations on Subcontracting (Dec 1996) (15 U.S.C. 637(a) (14).
	 
	o	 	(10) (i) 52.219-23, Notice of Price Evaluation Adjustment for Small Disadvantaged Business Concerns (July
2005) (Pub. L. 103-355, section 7102, and 10 U.S.C. 2323) (if the offeror elects to waive the adjustment, it
shall so indicate in its offer).
	 
	 	 	o (ii) Alternate I (June 2003) of 52.219-23.

13

 

	o	 	(11) 52.219-25, Small Disadvantaged Business Participation Program—Disadvantaged Status and Reporting (Oct 1999)
(Pub). L. 103-355, section 7102, and 10 U.S.C. 2323).
	 
	o	 	(12) 52.219-26, Small Disadvantaged Business Participation Program—Incentive Subcontracting (Oct 2000) (Pub). L.
103-355, section 7102, and 10 U.S.C. 2323).
	 
	o	 	(13) 52.219-27, Notice of Total Service-Disabled Veteran-Owned Small Business Set-Aside (May 2004).
	 
	þ	 	(14) 52.222-3, Convict Labor (June 2003) (E.O. 11755).
	 
	þ	 	(15) 52.222-19, Child Labor—Cooperation with Authorities and Remedies (June 2004) (E.O. 13126).
	 
	þ	 	(16) 52.222-21, Prohibition of Segregated Facilities (Feb 1999).
	 
	þ	 	(17) 52.222-26, Equal Opportunity (Apr 2002) (E.O. 11246).
	 
	þ	 	(18) 52.222-35, Equal Opportunity for Special Disabled Veterans, Veterans of the Vietnam Era, and Other Eligible
Veterans (Dec 2001) (38 U.S.C. 4212).
	 
	þ	 	(19) 52.222-36, Affirmative Action for Workers with Disabilities (Jun 1998) (29 U.S.C. 793).
	 
	þ	 	(20) 52.222-37, Employment Reports on Special Disabled Veterans, Veterans of the Vietnam Era, and Other Eligible
Veterans (Dec 2001) (38 U.S.C. 4212).
	 
	o	 	(21) 52.222-39, Notification of Employee Rights Concerning Payment of Union Dues or Fees (Dec 2004) (E.O. 13201).
	 
	o	 	(22) (i) 52.223-9, Estimate of Percentage of Recovered Material Content for EPA-Designated Products (Aug 2000) (42
U.S.C. 6962(c) (3) (A) (ii)).
	 
	 	 	o (ii) Alternate I (Aug 2000) of 52.223-9 (42 U.S.C. 6962(i) (2) (C)).
	 
	o	 	(23) 52.225-1, Buy American Act—Supplies (June 2003) (41 U.S.C. 10a-10d).
	 
	o	 	(24) (i) 52.225-3, Buy American Act—Free Trade Agreements—Israeli Trade Act (Jan 2005) (41 U.S.C. 10a-10d,
19 U.S.C. 3301 note, 19 U.S.C. 2112 note, Pub. L. 108-77, 108-78, 108-286).
	 
	 	 	o (ii) Alternate I (Jan 2004) of 52.225-3.
	 
	 	 	o (iii) Alternate II (Jan 2004) of 52.225-3.
	 
	o	 	(25) 52.225-5, Trade Agreements (Jan 2005) (19 U.S.C. 2501, et seq., 19 U.S.C. 3301 note).
	 
	o	 	(26) 52.225-13, Restrictions on Certain Foreign Purchases (Mar 2005) (E.o.s, proclamations, and statutes
administered by the Office of Foreign Assets Control of the Department of the Treasury).
	 
	o	 	(27) 52.225-15, Sanctioned European Union Country End Products (Feb 2000) (E.O. 12849).
	 
	o	 	(28) 52.225-16, Sanctioned European Union Country Services (Feb 2000) (E.O. 12849).
	 
	o	 	(29) 52.232-29, Terms for Financing of Purchases of Commercial Items (Feb 2002) (41 U.S.C. 255(f), 10 U.S.C. 2307(f)).
	 
	o	 	(30) 52.232-30, Installment Payments for Commercial Items (Oct 1995) (41 U.S.C. 255(f), 10 U.S.C. 2307(f)).
	 
	þ	 	(31) 52.232-33, Payment by Electronic Funds Transfer—Central Contractor Registration (Oct 2003) (31 U.S.C. 3332).
	 
	o	 	(32) 52.232-34, Payment by Electronic Funds Transfer—Other than Central Contractor Registration (May 1999) (31 U.S.C.
3332).
	 
	o	 	(33) 52.232-36, Payment by Third Party (May 1999) (31 U.S.C. 3332).
	 
	o	 	(34) 52.239-1, Privacy or Security Safeguards (Aug 1996) (5 U.S.C. 552a).
	 
	o	 	(35) (i) 52.247-64, Preference for Privately Owned U.S.-Flag Commercial Vessels (Apr 2003) (46 U.S.C. App. 1241 and
10 U.S.C. 2631).
	 
	 	 	o (ii) Alternate I (Apr 2003) of 52.247-64.

(c) The Contractor shall comply with the FAR clauses in this paragraph (c), applicable to
commercial services, that the Contracting Officer has indicated as being incorporated in this
contract by reference to implement provisions of law or Executive orders applicable to acquisitions
of commercial items:

[Contracting Officer check as appropriate.]

	 	 	o (1) 52.222-41, Service Contract Act of 1965, as Amended (July 2005) (41 U.S.C. 351, et
seq.).
	 
	 	 	o (2) 52.222-42, Statement of Equivalent Rates for Federal Hires (May 1989) (29 U.S.C. 206 and
41 U.S.C. 351, et seq.).
	 
	 	 	o (3) 52.222-43, Fair Labor Standards Act and Service Contract Act—Price Adjustment (Multiple
Year and Option Contracts) (May 1989) (29 U.S.C. 206 and 41 U.S.C. 351, et seq.).

14

 

	 	 	o (4) 52.222-44, Fair Labor Standards Act and Service Contract Act—Price Adjustment (Feb
2002) (29 U.S.C. 206 and 41 U.S.C. 351, et seq.).
	 
	 	 	o (5) 52.222-47, SCA Minimum Wages and Fringe Benefits Applicable to Successor Contract
Pursuant to Predecessor Contractor Collective Bargaining Agreements (CBA) (May 1989) (41 U.S.C.
351, et seq.).

(d) Comptroller General Examination of Record. The Contractor shall comply with the provisions of
this paragraph (d) if this contract was awarded using other than sealed bid, is in excess of the
simplified acquisition threshold, and does not contain the clause at 52.215-2, Audit and
Records—Negotiation.

(1) The Comptroller General of the United States, or an authorized representative of the
Comptroller General, shall have access to and right to examine any of the Contractor’s directly
pertinent records involving transactions related to this contract.

(2) The Contractor shall make available at its offices at all reasonable times the records,
materials, and other evidence for examination, audit, or reproduction, until 3 years after final
payment under this contract or for any shorter period specified in FAR Subpart 4.7, Contractor
Records Retention, of the other clauses of this contract. If this contract is completely or
partially terminated, the records relating to the work terminated shall be made available for 3
years after any resulting final termination settlement. Records relating to appeals under the
disputes clause or to litigation or the settlement of claims arising under or relating to this
contract shall be made available until such appeals, litigation, or claims are finally resolved.

(3) As used in this clause, records include books, documents, accounting procedures and practices,
and other data, regardless of type and regardless of form. This does not require the Contractor to
create or maintain any record that the Contractor does not maintain in the ordinary course of
business or pursuant to a provision of law.

(e)(1) Notwithstanding the requirements of the clauses in paragraphs (a), (b), (c), and (d) of this
clause, the Contractor is not required to flow down any FAR clause, other than those in paragraphs
(i) through (vii) of this paragraph in a subcontract for commercial items. Unless otherwise
indicated below, the extent of the flow down shall be as required by the clause—

(i) 52.219-8, Utilization of Small Business Concerns (May 2004) (15 U.S.C. 637(d) (2) and
(3)), in all subcontracts that offer further subcontracting opportunities. If the
subcontract (except subcontracts to small business concerns) exceeds $500,000
($1,000,000 for construction of any public facility), the subcontractor must include
52.219-8 in lower tier subcontracts that offer subcontracting opportunities.

(ii) 52.222-26, Equal Opportunity (Apr 2002) (E.O. 11246).

(iii) 52.222-35, Equal Opportunity for Special Disabled Veterans, Veterans of the Vietnam
Era, and Other Eligible Veterans (Dec 2001) (38 U.S.C. 4212).

(iv) 52.222-36, Affirmative Action for Workers with Disabilities (June 1998) (29 U.S.C. 793).

(v) 52.222-39, Notification of Employee Rights Concerning Payment of Union Dues or Fees (Dec
2004) (E.O. 13201).

(vi) 52.222-41, Service Contract Act of 1965, as Amended (July 2005), flow down required for
all subcontracts subject to the Service Contract Act of 1965 (41 U.S.C. 351, et seq.).

(vii) 52.247-64, Preference for Privately Owned U.S.-Flag Commercial Vessels (Apr 2003) (46
U.S.C. App. 1241 and 10 U.S.C. 2631). Flow down required in accordance with paragraph (d) of
FAR clause 52.247-64.

(2) While not required, the contractor may include in its subcontracts for commercial items a
minimal number of additional clauses necessary to satisfy its contractual obligations.

Attachment:

Invoice Instructions for Fixed Price Contracts

15

 

Attachment

INVOICE INSTRUCTIONS FOR FIXED-PRICE CONTRACTS.

General The contractor shall submit vouchers or invoices as prescribed herein.

Format
Standard Form 1034, Public Voucher for Purchases and Services Other Than Personal,
and Standard Form 1035, Public Voucher for Purchases and Services Other than Personal—Continuation
Sheet, or the payee’s letterhead or self-designed form should be used to submit claims for
reimbursement.

Number of Copies As indicated in the contract.

Frequency Invoices submitted in accordance with the Payment Clause shall be submitted upon
delivery of goods or services unless otherwise authorized by the contracting officer.

Preparation and Itemization of the Invoice The invoice shall be prepared as follows:

(a) Designated Billing Office and address:

HHS/OPHEP/ORDC

200 Independence Ave, Room 636G

Washington DC 20201

ATTN: Contract Specialist

(b) Invoice Number

(c) Date of Invoice

(d) Contract number and date

(e) Payee’s name and address. Show the contractor’s name (as it appears in the contract), correct
address, and the title and phone number of the responsible official to whom payment is to be sent.
When an approved assignment has been made by the contractor, or a different payee has been
designated, then insert the name and address of the payee instead of the contractor.

(f) Description of goods or services, quantity, unit price, (where appropriate), and total amount.

(g) Charges for freight or express shipments other than F.O.B. destination. (If shipped by freight
or express and charges are more than $25, attach prepaid bill.)

(h) Equipment If there is a contract clause authorizing the purchase of any item of equipment, the
final invoice must contain a statement indicating that no item of equipment was purchased or
include a completed form HHS-565, Report of Capitalized Nonexpendable Equipment.

Currency Where payments are made in a currency other than United States dollars, billings
on the contract shall be expressed, and payment by the United States Government shall be made, in
that other currency at amounts coincident with actual costs incurred. Currency fluctuations may not
be a basis of gain or loss to the contractor. Notwithstanding the above, the total of all invoices
paid under this contract may not exceed the United States dollars authorized.

16

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