Document:

Exhibit
10.40

 

ENTITY
TRANSFER

 

 

CONTRIBUTION
AND INVESTMENT AGREEMENT

 

Between

 

TRT
INDUSTRIAL FUND I LLC

DCT INDUSTRIAL FUND II LLC

TRT-DCT
INDUSTRIAL JVI GENERAL PARTNERSHIP

 

and

 

DCT
INDUSTRIAL OPERATING PARTNERSHIP LP

 

Dated as
of December 8, 2006

 

 

CONTRIBUTION AND INVESTMENT AGREEMENT

 

THIS CONTRIBUTION AND INVESTMENT AGREEMENT (this “Agreement”), dated as of December 8,
2006, by and among TRT INDUSTRIAL FUND I LLC (“TRT
Partner”), DCT INDUSTRIAL FUND II LLC (“DCT
Partner”), DCT INDUSTRIAL OPERATING PARTNERSHIP LP (“DCTIOP”), TRT-DCT INDUSTRIAL JV I
GENERAL PARTNERSHIP (the “Partnership”)
and DCTIOP as the sole member on behalf of those certain entities listed on Exhibit A-1 (each a “DCT Affiliate”, and, together with
DCT Partner and DCT Leasing collectively the “DCT
Parties” or “Contributor”).

 

RECITALS:

 

A.            The
Partnership was formed as a general partnership under the laws of the State of
Delaware on August 31, 2006. In connection with the continuation of the
Partnership, TRT Partner and DCT Partner entered into that certain Partnership
Agreement dated as of September 1, 2006 (the “Partnership
Agreement”). All initially capitalized terms used in this
Agreement and not otherwise defined herein shall have the meaning given to such
term in the Partnership Agreement.

 

B.            Certain
DCT Affiliates hold title to the properties listed on Exhibit
A-2 and legally described on Exhibit
A-3 both attached hereto (each a “Property”,
and collectively the “Properties”).

 

C.            As
contemplated by the Partnership Agreement, the DCT Partner will cause the DCT
Parties to contribute the Properties to the Partnership, all of which shall be
accomplished by an assignment of the ownership interests in the fee owing DCT
Affiliate on the terms and conditions hereafter set forth.

 

NOW, THEREFORE, in consideration of the premises, the
mutual covenants set forth herein, and other good and valuable consideration,
the receipt and sufficiency of which the parties hereby acknowledge, the
parties hereto agree as follows:

 

ARTICLE I

PROPERTY

 

SECTION
1.1. Certain Basic Terms.

 

	
  (a)           DCT Partner/DCT Parties Notice
  Address:

   

  c/o DCT Industrial
  Operating Partnership LP

  518 17th Street

  Suite 1700

  Denver, Colorado 80202

  Attention:  Teresa L. Corral

   

  Telephone: 303/228-2200

  Facsimile: 303/228-2201

  E-mail: tcorral@dctindustrial.com

  	
  With copies to:

   

  Mayer, Brown,
  Rowe & Maw LLP

  Attn: Milos Markovic

  71 South Wacker Drive

  Chicago, Illinois 60606

  Telephone: 312/701-7202

  Facsimile: 312/706-8505

  E-mail:mmarkovic@mayerbrownrowe.com

  

 

 

	
  (b)           TRT Partner Notice Address:

   

  c/o Dividend
  Capital Total Realty Trust

   

  518 17th
  Street

  Suite 1700

  Denver, Colorado 80202

  Attention:  Greg Moran

  Telephone:
  303/228-2200

  Facsimile: 303/996-8486

  E-mail:
  gmoran@dividendcapital.com

  	
  With a copy to:

   

  Heller Ehrman
  LLP

  Attn: Steven C. Koppell

  Times Square Tower

  7 Times Square

  New York, NY 10036

  Telephone: 212.847.8782

  Facsimile: 212.763.7600

  email: steven.koppel@hellerehrman.com

  

 

(c)           Property Value:    $19,065,000.00

 

(d)           Contributor:          DCTIOP

 

(e)           Closing Date:        December 8, 2006 (the “Closing Date”).

 

SECTION
1.2. Properties. The term “Property”
shall mean each of the Properties owned or leased by the applicable DCT
Affiliate to be contributed by DCT Partner to the Partnership hereunder as a
result of the contribution by DCT Partner of the Ownership Interests (as
hereinafter defined) in such DCT Affiliate, and shall include the following in
relation to each Property::

 

(a)           Fee Simple title to, or as
applicable, a leasehold interest in, (i) the land (“Land”)
comprising the applicable Property and (ii) the improvements located thereon (“Improvements”), together with all
rights, privileges, easements, servitudes and appurtences thereunto belonging
or appertaining, including all right, title and interest, if any, of Contributor
in and to oil, gas, mineral and other subterranean rights, the streets, alleys
and rights-of-way adjacent to the Land (the Land and the Improvements being,
collectively, the “Real Property”).

 

(b)           All right, title and interest of Contributor
in and to all fixtures, furniture, equipment, and other tangible personal
property, if any, owned, directly or indirectly, by Contributor (the “Personal Property”) presently
located on such Real Property, but excluding any items of personal property
owned by tenants.

 

(c)           All interest of Contributor, as
landlord, in all executed leases under which a tenant occupies or is to occupy
such Property or a portion thereof, and all amendments thereto (all such leases
and all amendments thereto being the “Leases”).

 

(d)           All right, title and interest, if
any, of Contributor in and to all of the following items, to the extent
assignable and, except as provided herein, without warranty (the “Intangible Personal Property”):  (i) licenses, and permits relating to the
operation of the Real Property, (ii) the right to use the name of the Real Property
(if any) in connection with the Real Property (but excluding any tradenames,
trademarks or goodwill of the relevant Contributor or any of their Affiliates),
(iii) if still in effect, guaranties and warranties received by or assigned to Contributor
from any contractor, manufacturer or other person in connection with the
construction or operation of the Property, and

 

2

 

(iv) if any of the
guaranties and warranties described in clause (iii) (the “Contractor
Guaranties”) are unassignable, the beneficial interest of Contributor
in such Contractor Guaranty, to the extent the assignment of such beneficial
interest does not void such Contractor Guaranty.

 

(e)           The Ownership Interests in the
relevant DCT Affiliate that otherwise owns (a) through (d) above. The term “Ownership
Interests” shall mean all of the limited liability company interests in the
relevant DCT Affiliate.

 

ARTICLE II

INSPECTION OF PROPERTIES

 

SECTION
2.1. Property Information. The DCT Parties have made or
will make available to TRT Partner copies of, or access to with the right to
copy, the following (“Property Information”)
for the Property:

 

(a)           copies of the existing Leases for the
Property, a schedule of which is attached hereto as Exhibit B;

 

(b)           a current rent roll and aging report for
the Property, indicating rents collected, scheduled rents and concessions, delinquencies,
and security deposits held (the “Rent Roll”);

 

(c)           operating statements for the two
previous fiscal years, or such lesser period of ownership as may be available,
and year to date (the “Operating Statements”),
true and complete copies of which are attached hereto as Exhibit C;

 

(d)           a list of Personal Property, if any,
and a list and copies of any, and service or maintenance agreements, if any,
relating to such Property (“Service Contracts”),
a schedule of which is attached hereto as Exhibit D;

 

(e)           a statement detailing projected cash
flow for such Property over ten (10) years (the “Cash
Flow Projection”);

 

(f)            a policy of title insurance for such
Property (the “Existing Title Policy”);

 

(g)           a land title survey for such Property
(the “Existing Survey”); and

 

(h)           all environmental, engineering or
physical condition reports relating to such Property and delivered to Contributor
or its Affiliates by the seller of such Property at the time such Property was
acquired by Contributor or its Affiliates, or obtained by Contributor or any of
its Affiliates at the time such Property was acquired by Contributor or its
Affiliates, or prepared by or on behalf of Contributor or any of its Affiliates
since the date such Property was acquired by Contributor or its Affiliates, a
true and complete listing of which is attached hereto as Exhibit E.

 

Except as otherwise
expressly provided in Section 9, the DCT Parties make no representations
or warranties as to the accuracy or completeness of the Property Information.

 

3

 

SECTION
2.2. Confidentiality. The Property Information and all
other information, other than matters of public record or matters generally
known to the public, furnished to, or obtained through inspection of the
Property by, TRT Partner, its affiliates, 
employees, attorneys, accountants and other professionals or agents
relating to the Property, will be treated by TRT Partner, its affiliates,
employees and agents as confidential, and will not be disclosed to anyone other
than on a need-to-know basis, which persons may include persons or entities
considering an investment, directly or indirectly, in TRT Partner, and to TRT
Partner’s consultants who agree to maintain the confidentiality of such
information. The confidentiality provisions of this Section 2.2
shall not apply to any disclosures made by TRT Partner as required by law, by
court order or in connection with any subpoena served upon TRT Partner,
provided TRT Partner shall provide the DCT Parties with written notice before
making any such disclosure, and in connection with the enforcement of this
Agreement or the Partnership Agreement. The obligations of the parties under
this Section 2.2 are in addition to the obligations of the parties under
Section 8.3.

 

SECTION
2.3. “AS-IS” Transaction. Except for the DCT Parties’
representations and warranties expressly provided herein, and any
representations and warranties contained in any other document or instrument
executed and delivered by any DCT Party at the Closing (“DCT
Parties’ Warranties”), the contribution of the Property to the
Partnership will be made without representation, covenant or warranty of any
kind (whether express or implied, or, to the maximum extent permitted by
applicable law, statutory) by any of the DCT Parties. As a material part of the
consideration for this Agreement, TRT Partner acknowledges and agrees that it will
accept the Property on an “as is” and “where is” basis, with all faults, and
without any representation or warranty, all of which Contributor hereby
disclaims, except for DCT Parties’ Warranties. Except for DCT Parties’ Warranties,
no warranty or representation is made by the DCT Parties as to fitness for any
particular purpose, merchantability, design, quality, condition, operation or
income, compliance with drawings or specifications, absence of defects, absence
of hazardous or toxic substances, absence of faults, flooding, or compliance
with laws and regulations including, without limitation, those relating to
health, safety, and the environment. The provisions of this Section 2.3
shall survive indefinitely the Closing or termination of this Agreement and
shall not be merged into the Closing documents.

 

ARTICLE III

TITLE AND SURVEY REVIEW

 

SECTION
3.1. Delivery of Title Report. The DCT Parties have
caused to be delivered to TRT Partner prior to the date hereof, (i) a
preliminary report or title commitment (collectively, the “Title
Commitment”) issued by Fidelity National Title Insurance Partnership
(the “Title Company”), covering the
Real Property, together with copies of all documents referenced in the Title Commitment,
and (ii) a ALTA-ACSM Urban survey of the Property (collectively, the “Surveys”) together with an affidavit
of “no change” executed by Contributor addressed to the Title Company.

 

SECTION
3.2. Title Review and Cure. Contributor represents and
warrants that DCT Affiliate has good and indefeasible fee simple title to the
Property and shall convey the same to the Partnership subject only to the
Permitted Exceptions (as defined below), which title is insured under the
Existing Title Policy.

 

4

 

(a)           In the event the Title Commitment, as
updated to Closing, or the Survey identifies any title exceptions or defects in
title that are unacceptable to TRT Partner (“Title
Objections”), TRT Partner shall notify the DCT Parties of such
Title Objections prior to Closing. If the DCT Parties fail to timely respond to
any Title Objection(s), the DCT Parties shall be deemed to have notified TRT
Partner that the DCT Parties have elected not to cure the Title Objection(s) in
question. In the event the DCT Parties cannot correct such defects by Closing
or choose not to correct (or is deemed to have elected not to correct) such
defects, then TRT Partner may accept title as is without abatement or reduction
of Purchase Price or TRT Partner may cancel this Agreement. Notwithstanding
anything herein to the contrary, at or prior to Closing, Contributor, at its
expense, shall (i) release any mortgage lien secured by the Property and all
related financing statements and other instruments related to such financing,
(ii) release any mechanic’s lien, if any, arising directly from work performed
at the request of Contributor pursuant to a written agreement with Contributor
(which liens may be insured around with the Title Company), and (iii) satisfy
all matters on Schedule C to the Title Commitment that are applicable to
Contributor or its Affiliate (all of the foregoing being herein collectively
referred to as “Mandatory Cure Items”). As
used herein, the term “Permitted Exceptions” means all matters shown in
Schedule B to the Title Commitment, Existing Title Policy or on the Survey,
except (i) those matters, if any, with respect to which TRT Partner timely
sends a Title Objection and that Contributor has agreed in writing to cure
prior to Closing or which are waived by TRT Partner in accordance with this Section 3.2(a),
and (ii) the Mandatory Cure Items.

 

(b)           The Partnership will purchase a
mortgagee title policy (“Mortgagee Title Policy”)
within ninety (90) days after Closing. The Existing Title Policy shall remain
in effect until issuance of the Mortgagee Title Policy. Until the effective
date of the Mortgagee Title Policy, DCTIOP and DCT Partner agree to defend,
indemnify and hold TRT Partner and the Partnership harmless from and against
any claims or encumbrances negatively impacting title to the Real Property not
otherwise identified as Permitted Exceptions that relate to a time period after
the Existing Title Policy and before 11:59PM on December 8, 2006, and agrees to
remove the same from title.

 

SECTION
3.3. Physical and Financial Inspection. The DCT Parties
have provided to TRT Partner, prior to the date of this Agreement, the Property
Information. For a period (the “Inspection Period”)
commencing on the effective date hereof and expiring at the Closing (such date
is herein referred to as the “Inspection Period
Expiration Date”), TRT Partner has had the right to perform a
physical and mechanical inspection, measurement and audit of the Property and
an inspection of all books and records and financial information pertaining
thereto and to perform such other studies and evaluations to determine the
suitability of the Property for the Partnership’s needs, and the DCT Parties
have cooperated with TRT Partner and have furnished to TRT Partner such
information, materials and documents as TRT Partner may reasonably request. The
inspection, audit and measurement of the Property’s operation, condition and
maintenance shall include, without limitation, such environmental and
engineering inspections, reviews and assessments that TRT Partner has deemed
appropriate. If TRT Partner, at TRT Partner’s sole and absolute discretion,
shall find such inspection(s), studies or evaluations to be unsatisfactory for
any reason whatsoever, TRT Partner shall have the right, at its option, to
terminate this Agreement on or before the Inspection Period Expiration Date,
and upon such termination, the Property Information shall be returned to
Contributor, and upon such return of the Property Information, and thereupon
the parties hereto shall have no further liabilities one to the other with
respect to the subject matter of this Agreement, except for the provisions of
this Agreement which expressly survive a termination hereof. TRT

 

5

 

Partner shall defend,
indemnify and hold Contributor harmless from and against any claims and
liabilities asserted against Contributor arising out of TRT Partner’s
inspections; provided, however, the indemnity shall not extend to claims or liabilities
arising out of the discovery of any existing Property condition. This indemnity
shall survive the Closing and any termination of this Agreement.

 

ARTICLE IV

OPERATIONS AND RISK OF LOSS

 

SECTION
4.1. Ongoing Operations and Maintenance. From the date of
this Agreement through the Closing Date or earlier termination of this
Agreement, in relation to each Property (i) Contributor shall carry on its
business and activities relating to such Property, substantially in the same
manner as it did before the date of this Agreement, and (ii) Contributor shall
not sell or encumber such Property or any material portion thereof or interest
therein. At all times prior to the Closing Date, Contributor shall maintain the
Property in good condition and repair, reasonable wear and tear excepted,
operate the Property in accordance with substantially the same management
practices and leasing standards as currently done, and pay in the normal course
of business prior to Closing, all sums due for work, materials or service
furnished or otherwise incurred in the ownership and operation of the Property
prior to Closing.

 

SECTION
4.2. Performance under Leases and Service Contracts. From
the date of this Agreement through the Closing Date or earlier termination of
this Agreement, Contributor will perform its material obligations under the
Leases and Service Contracts and other agreements that may affect the Property.

 

SECTION
4.3. New Contracts. Except for agreements which can be
terminated on not more than thirty (30) days notice without penalty or
termination fee, from the date of this Agreement through the Closing Date or
earlier termination of this Agreement, Contributor will not enter into any
contract that will be an obligation affecting a Property subsequent to the
Closing, without the prior consent of TRT Partner, which shall not be
unreasonably withheld or delayed.

 

SECTION
4.4. Termination of Service Contracts. From the date of
this Agreement through the Closing or earlier termination of this Agreement,
other than in the ordinary course of business, Contributor shall not terminate
any Service Contract without TRT Partner’s prior consent, which shall not be
unreasonably withheld or delayed. Contributor shall notify TRT Partner of any
Service Contract that is terminated by Contributor in the ordinary course of
business.

 

SECTION
4.5. Damage or Condemnation. Risk of loss resulting from
any condemnation or eminent domain proceeding which is commenced or has been
threatened before the Closing, and risk of loss to any Property due to fire,
flood or any other cause before the Closing, shall remain with Contributor. If
before the Closing any Property or any portion thereof shall be materially
damaged, or if any Property or any portion thereof shall be subjected to a bona fide threat of condemnation or shall
become the subject of any proceedings, judicial, administrative or otherwise,
with respect to the taking by eminent domain or condemnation, then TRT Partner
may elect to exclude such Property from this Agreement, and Contributor may
propose a substitute real property for consideration as a Property hereunder.

 

6

 

SECTION
4.6. Material Change. If before the Closing there is an
event not covered by Section 4.6 above that materially reduces the value
of any Property, then TRT Partner may elect to exclude such Property from this
Agreement, and the DCT Parties may propose a substitute real property for
consideration as a Property hereunder.

 

SECTION
4.7. Security Deposits. Except in the ordinary course,
Contributor shall not apply any tenant’s security deposit to the discharge of
such tenant’s obligations, without TRT Partner’s consent, which shall not be
unreasonably withheld.

 

SECTION
4.8. Bill Tenants. Contributor shall timely bill all tenants
for all rent billable under Leases and use its commercially reasonable efforts
to collect any rent in arrears.

 

SECTION
4.9. Notice to TRT Partner. Contributor shall notify TRT
Partner promptly of the occurrence of any of the following:  (i) a fire or other casualty causing damage
to the Property, or any portion thereof; (ii) receipt of notice of eminent
domain proceedings or condemnation of or affecting the Property, or any portion
thereof; (iii) receipt of notice from any governmental authority relating to
the condition, use or occupancy of the Property, or any portion thereof, or any
real property adjacent to any of the Property, or setting forth any
requirements with respect thereto; (iv) receipt or delivery of any default or
termination notice or claim of offset or defense to the payment of rent from
any tenant; (v) receipt of any notice of default from the holder of any lien or
security interest in or encumbering the Property, or any portion thereof; (vi)
a change in the occupancy of the leased portions of the Property; or (vii)
notice of any actual or threatened litigation against Contributor or affecting
or relating to the Property, or any portion thereof.

 

ARTICLE V

FIRE OR OTHER CASUALTY

 

SECTION
5.1. Maintain Insurance. Contributor shall maintain in
effect until the Closing Date the insurance policies (or like policies) now in
effect with respect to the Property.

 

SECTION
5.2. Minimal Damage. If prior to the Closing Date any
portion of the Property is damaged or destroyed by fire or other casualty, and
the cost of repair or restoration thereof shall be $500,000 or less (as
established by good faith estimates obtained by TRT Partner which are
reasonably satisfactory to Contributor), this Agreement shall remain in force
and Contributor shall commence to repair any such damage prior to Closing, if
possible.

 

SECTION
5.3. Substantial Damage. If prior to the Closing Date any
portion of the Property is damaged or destroyed by fire or other casualty, and
the cost of repair or restoration thereof shall be more than $500,000 (as
established by good faith estimates obtained by TRT Partner which are
reasonably satisfactory to Contributor), TRT Partner may within thirty (30)
days after receipt of notice of said damage or destruction, terminate this
Agreement by giving written notice thereof to Contributor, and if this
Agreement is so terminated, and thereafter neither party shall have any further
liability hereunder thereafter, except for the provisions hereof which
expressly survive a termination of this Agreement. If TRT Partner does not so
terminate this Agreement, it shall remain in full force and effect, and the
provisions of Section 5.4 below shall apply.

 

7

 

SECTION
5.4. Closing After Substantial Damage. So long as this
Agreement shall remain in force under Section 5.2 or 5.3,
then (i) all proceeds of insurance collected prior to Closing, plus the amount
of deductible under Contributor’s insurance policy, shall be adjusted subject
to TRT Partner’s approval and participation in any adjustment, and shall be
credited to the Partnership against the Purchase Price payable by the
Partnership at Closing and, in the case of a fire or other casualty described
in Section 5.2, the Purchase Price shall be further credited by the
amount of an uninsured loss which has not been repaired by Contributor, and
(ii) all unpaid claims and rights in connection with losses shall be assigned
to the Partnership at Closing.

 

ARTICLE VI

EXPENSE ALLOCATIONS

 

SECTION 6.1. TRT Partner shall pay for all
recording charges for the Deed and any financing documents relating to TRT
Partner’s financing, any endorsements to the Existing Title Policy, any update
of the Survey and any other costs incurred by TRT Partner in connection with
its inspection of the Property.

 

SECTION
6.2. The following expenses shall be split between the
Partnership and Contributor in accordance with local custom: (i) any recording
fees for the release of liens released by Contributor, (ii) documents required
to effect any cure of Title Objections that Contributor has elected to cure in
accordance with this Agreement and (iii) documentary stamp taxes, transfer
taxes or similar taxes which become payable by reason of the Deed from
Contributor to the Partnership.

 

SECTION
6.3. The parties shall be responsible for paying their
own attorney’s fees in connection with this transaction. Each of the
Partnership and Contributor shall be responsible for payment of fifty percent
(50%) of the escrow fees.

 

ARTICLE VII

CLOSING

 

SECTION
7.1. Closing. The contribution of the Property to the
Partnership (the “Closing”) shall occur on the
Closing Date at such location upon which the parties shall agree.

 

SECTION
7.2. Conditions to the Parties’ Obligations to Close. The
obligation of the DCT Parties and TRT Partner to consummate the transactions
contemplated hereunder is contingent upon the following:

 

(a)           The other party’s representations and
warranties contained herein shall be true and correct in all material respects
as of the date of this Agreement and the Closing Date;

 

(b)           As of the Closing Date, the other
party shall have performed its obligations hereunder in all material respects
and all deliveries to be made at Closing have been tendered;

 

(c)           The Property will be in substantially
the same condition as existed on the date of the engineering report listed on Exhibit E of this Agreement,
subject to ordinary wear and tear;

 

8

 

(d)           There shall exist no material
violation of any law, rule or regulation affecting or relating to the Property
or its use, including any environmental law or regulation;

 

(e)           There shall exist no actions, suits,
arbitrations, claims, attachments, proceedings, assignments for the benefit of
creditors, insolvency, bankruptcy, reorganization or other proceedings, pending
or threatened against the other party (including, in the case of Contributor, each
Affiliate) that would materially and adversely affect the other party’s ability
to perform its obligations under this Agreement;

 

(f)            There shall exist no pending or
threatened action, suit or proceeding with respect to the Property or the other
party before or by any court or administrative agency which seeks to restrain
or prohibit, or to obtain damages or a discovery order with respect to, this
Agreement or the consummation of the transaction contemplated hereby;

 

(g)           With respect to each of the Leases,
Contributor shall have delivered to TRT Partner (i) an estoppel certificate
executed by Contributor in the form of Exhibit F
hereto (the “Contributor’s Estoppel”) or
(ii) a tenant estoppel in the form of Exhibit G
hereto or the form required by the applicable Lease (each such certificate
being a “Tenant Estoppel”). To the
extent that Contributor’s Estoppels are delivered with respect to any Lease,
such estoppel shall be deemed of no further force or effect upon the delivery
of a Tenant Estoppel from the applicable tenant which is not inconsistent with
the Contributor Estoppel.

 

SECTION
7.3. The DCT Parties’ Deliveries in Escrow. On or before
the Closing Date, the DCT Parties shall cause to be delivered to Fidelity
National Title Insurance Company, the escrowee for the parties (the “Escrow Agent”), the following:

 

(a)           Assignment Agreements.
The Assignment Agreement in the form of Exhibit H
attached hereto executed by the appropriate DCT Parties.

 

(b)           State Law Disclosures.
Such disclosures and reports as are required by applicable state and local law
in connection with the conveyance of direct or indirect interests in real property;

 

(c)           Certificate of Non-Foreign
Status. A certificate of non-foreign status for Contributor (and/or
the relevant DCT Affiliate) sworn to by Contributor (and/or the relevant DCT
Affiliate); and

 

(d)           Entity Documents.
Such documents as may be necessary to reflect the Partnership as the sole
member of the Ownership Interests.

 

(e)           Original Leases, Licenses,
Service Contracts and Other Personal Property. All original Leases
and licenses, Service Contracts, and other Personal Property, which may be
delivered outside of escrow as otherwise directed by the Partnership.

 

(f)            Keys. All keys,
combinations and security codes for all locks and security devices on the
Property, which may be delivered outside of escrow as otherwise directed by the
Partnership.

 

9

 

(g)           Tenant Letter. Letters
to each tenant advising of the change in ownership and directing the payment of
rent to such party as the Partnership shall designate, said letter to be in
form reasonably acceptable to the TRT Partner, which may be handled outside of
Closing.

 

(h)           Tenant Estoppel.
The DCT Parties shall deliver at Closing either Contributor’s Estoppels or
Tenant Estoppels for each Lease. In addition, Contributor agrees to cooperate
with the Partnership in connection with delivering to the tenants
Subordination, Non Disturbance and Attornment Agreements (“SNDAs”)
which may be required by the Partnership’s lender.

 

(i)            Contributor’s Authority.
Proof reasonably satisfactory to the Partnership of Contributor’s good standing
and authority to enter into this transaction and proof of existence and
authority of the general partner, manager, member, or officer of the
Contributor to act on behalf of Contributor, which may include, as determined
by the Partnership: (i) the certificate of incorporation or formation of
Contributor certified by the Secretary of State of the state in which
Contributor is formed or incorporated as of a recent date and by an officer of
Contributor, (ii) the bylaws or operating agreement of Contributor, certified
by an officer of Contributor, (iii) a certificate of good standing as of a
recent date for Contributor from the Secretary of State of the state in which
Contributor is formed or incorporated. and (iv) a certificate of an officer from
Contributor certifying resolutions of the board of directors or members
approving and authorizing the execution, delivery and performance by
Contributor of this Agreement and the consummation of the transactions
contemplated hereby (together with an incumbency and signature certificate
regarding the officer(s) signing on behalf of Contributor).

 

(j)            A closing statement acceptable to
Contributor.

 

SECTION
7.4. TRT Partner’s Deliveries in Escrow. On or before the
Closing Date, TRT Partner shall deliver in escrow to the Escrow Agent the
following:

 

(a)           Capital Contribution.
Based on the Property Value and subject to adjustment pursuant to Article 6,
TRT Partner shall contribute cash to the Partnership, which shall be
immediately distributed to DCT, in an amount equal to its Non-DCX Contribution
Percentage (i.e. 90%) as set forth in the Partnership Agreement.

 

(b)           Agreements. All
agreements, instruments, certificates and other documents required under this Agreement,
and counterparts to the DCT Parties’ deliveries above (to the extent
applicable), executed by TRT Partner.

 

(c)           Authority Documentation.
Such evidence of authority for the transactions contemplated hereby as shall be
required by the Partnership, including (i) the certificate of existence of TRT
Partner certified by the Secretary of State of Delaware as of a recent date and
by its company secretary or assistant secretary, (ii) the operating agreement
of TRT Partner, certified by its corporate secretary or assistant secretary,
(iii) a certificate of good standing as of a recent date for TRT Partner from
the Secretary of State of Delaware and (iv) a certificate of TRT Partner’s company
secretary or assistant secretary certifying resolutions of the board of
directors of TRT Partner approving and authorizing the execution, delivery and
performance by TRT Partner of this Agreement and the

 

10

 

consummation of the
transactions contemplated hereby (together with an incumbency and signature
certificate regarding the officer(s) signing on behalf of TRT Partner).

 

SECTION
7.5. Partnership Deliveries in Escrow. On or before the
Closing Date, DCT Partner and TRT Partner shall cause the Partnership to
deliver in escrow to the Escrow Agent the following:

 

(a)           Agreements. All
agreements, instruments, certificates and other documents required under the
Partnership Agreement, executed by the Partnership.

 

(b)           Additional Documents.
Any additional documents that may be required for the proper consummation of
the transactions contemplated by this Agreement, including the Assignment
Agreement duly executed by the Partnership.

 

ARTICLE VIII

EXPENSES AND PRORATIONS

 

SECTION
8.1. Prorations. Except as otherwise expressly provided
for in this Agreement, Contributor shall be entitled to all revenue and shall
be responsible for all expenses for the period of time up to and including the
day before the Closing, and the Partnership shall be entitled to all revenue
and be responsible for all expenses for the period of time on and after the
date of Closing. In each such proration set forth below, the portion thereof
applicable to periods beginning on the date of Closing shall be credited or
charged to the Partnership and the portion thereof applicable to periods ending
as of the day before the Closing shall be credited or charged to Contributor. Net
credits in favor of the Partnership shall be deducted from the balance of the
Property Value at the Closing and net credits in favor of Contributor shall be
added to the Property Value to be paid by the Partnership at the Closing.

 

(a)           Collected Rent.
All collected rent (excluding tenant reimbursements for Operating Expenses) and
other collected income (and any applicable state or local tax on rent) under
Leases in effect on the Closing Date shall be prorated between Contributor and
the Partnership as of the Closing. Contributor shall be charged with any rent
and other income collected by Contributor before Closing but applicable to any
period of time after Closing. The Partnership shall apply rent, operating
expenses and other income from tenants that are collected after the Closing
first to the post Closing costs of collection and then to post Closing
obligations then owing under the Leases, and then remitting the balance, if
any, to Contributor. Any prepaid rents collected by Contributor before Closing
applicable to the period following the Closing Date shall be paid over by
Contributor to the Partnership. The Partnership will make reasonable efforts,
without suit, to collect any rents applicable to the period before Closing.
Contributor may pursue collection as to any rent not collected by the
Partnership within six (6) months following the Closing Date, provided that Contributor shall have no right to terminate
any Lease or any tenant’s occupancy under any Lease in connection therewith.

 

(b)           Operating Expenses.
(i) Contributor, as landlord under the Leases, is currently collecting from
tenants under the Leases (to the extent not paid directly by tenants) additional
rent to cover taxes, insurance, utilities, common area maintenance and other
operating costs and expenses

 

11

 

(collectively, “Operating Expenses”) in connection
with the ownership, operation, maintenance and management of the Property. At
Closing, Contributor will deliver to the Partnership all such amounts collected
from tenants under the Leases to the extent not paid by Contributor to the
service provider or collecting authority, together with evidence or a
certificate indicating the date(s) to which such reimbursable Operating
Expenses have been paid by such Tenants and the date(s) to which such
reimbursable Operating Expenses have been paid by Contributor to the service
provider or collecting authority. Operating Expenses that are not payable by
tenants either directly or reimbursable under the Leases shall be prorated
between Contributor and the Partnership as of the Closing Date. In connection
with such proration, Operating Expenses for the period prior to the Closing
Date shall be reasonably estimated by Contributor and the Partnership if final
bills are not available, and any final adjusting payments shall be made
pursuant to Section 8.2 below.

 

(c)           Taxes and Assessments.
Real estate taxes and assessments imposed by governmental authority (“Property Taxes”)
that are not yet due and payable and that are not reimbursable by tenants under
the leases as Operating Expenses shall be prorated between Contributor and the
Partnership as of the Closing Date based upon the most recent ascertainable
assessed values and tax rates. Contributor shall receive a credit for any Property
Taxes paid by Contributor and applicable to any period after the Closing. Contributor
shall be charged for any unpaid Property Taxes owing and applicable to any
period before closing Final adjusting payments shall be made pursuant to Section 8.2,
below.

 

SECTION
8.2. Final Adjustment After Closing. If final prorations
are not made at Closing for any item required to be prorated under Section
8.1, including Property Taxes, then Contributor and the Partnership agree
to allocate such items on a fair and equitable basis in a final adjustment to
be made promptly after December 31, 2006, to the effect that income and
expenses are received and paid by Contributor and the Partnership on an accrual
basis (provided that real property taxes shall be adjusted on the same basis
upon which the Contributor acquired the Property) with respect to the periods
before and after the Closing Date, respectively. Payments in connection with
the final adjustment shall be due within 30 days of written notice. Contributor
shall have reasonable access to, and the right to inspect, the books of the
Partnership. If by way of a tenant audit of Operating Expenses or otherwise it
is determined that a tenant under a Lease is entitled to reimbursement for an
Operating Expense collected under its Lease, the portion of such reimbursement
attributable to the period prior to the Closing shall be for the account of
Contributor and shall be either paid by Contributor to such tenant or promptly
reimbursed by Contributor to the Partnership if previously paid by the
Partnership to such tenant. If any such tenant audit results in a payment to be
made by such tenant and such payment is attributable to a period prior to the
Closing, such payment shall be for the account of Contributor.

 

SECTION
8.3. Schedule of Prorations. The parties have endeavored
to jointly prepare a schedule of prorations for the Property no less than five
(5) days prior to Closing.

 

SECTION
8.4. Readjustments. The parties shall correct any errors
in prorations as soon after the Closing as amounts are finally determined. The
provisions of this Article 8 shall survive the Closing.

 

12

 

SECTION
8.5. Tenant Deposits. All tenant security deposits in
Contributor’s possession, as reflected on a final Rent Roll delivered to the
Partnership and not theretofore applied to tenant obligations under the Leases,
shall be credited to the Partnership, at Closing. The Partnership shall assume
Contributor’s obligations related to such tenant security deposits that are
credited to the Partnership. The Partnership will indemnify, defend, and hold
Contributor harmless from and against all demands and claims made by tenants
arising out of the improper failure or refusal of the Partnership, to refund to
a tenant any security deposit of such tenant credited to the Partnership and
will reimburse Contributor for any reasonable expenses (including all
reasonable attorneys’ fees) incurred or that may be incurred by Contributor as
a result of any such claims or demands by tenants. The Contributor will
indemnify, defend and hold the Partnership, harmless from and against all
demands and claims made by tenants arising out of any security deposits not
credited to the Partnership and will reimburse the Partnership, and for any
reasonable expenses (including all reasonable attorneys’ fees) incurred or that
may be incurred by the Partnership, as a result of any such claims or demands
by tenants.

 

SECTION
8.6. Deposits or Bonds. The Partnership shall be
responsible for replacing or crediting to Contributor at the Closing any other
deposits or bonds that may be outstanding relating to any Property on the
Closing Date.

 

SECTION
8.7. Leasing Commissions. Any leasing commissions that
may be owing to brokers in connection with lease renewals, expansions and
extensions that occur in relation to the Property prior to Closing, to the
extent not previously paid by Contributor, shall be the responsibility of the
Partnership. Leasing commissions that may be owing to brokers under existing
commission agreements with Contributor in connection with renewals, expansions,
and extensions that occur after Closing shall, as between Contributor and the
Partnership, be the responsibility of the Partnership. All existing commission
agreements and leasing commissions that are owing in relation to any Property
are set forth on Exhibit I
attached to this Agreement. As between the Partnership and Contributor,
Partnership will assume these existing commission agreements with respect to
leasing activities occurring after Closing.

 

SECTION
8.8. Brokerage Commissions. Except as expressly stated
herein, Contributor and the Partnership represent and warrant each to the other
that they have not dealt with any real estate broker, sales person or finder in
connection with this transaction. If any claim is made for broker’s or finder’s
fees or commissions in connection with the negotiation, execution or
consummation of this Agreement or the transactions contemplated hereby, each
party shall defend, indemnify and hold harmless the other party from and
against any such claim based upon any statement, representation or agreement of
such party.

 

ARTICLE IX

REPRESENTATIONS AND WARRANTIES

 

SECTION
9.1. DCT Parties’ Representations and Warranties. As a
material inducement to TRT Partner and the Partnership to execute this
Agreement and consummate this transaction, each DCT Party represents and
warrants to TRT Partner and the Partnership, that:

 

13

 

(a)           Organization and Authority.
It has been duly organized and is validly existing as a limited liability
company, in good standing in the State of Delaware. It has the full right and
authority and has obtained any and all consents required to enter into this
Agreement and to consummate or cause to be consummated the transactions
contemplated hereby. This Agreement has been, and all of the documents, to be
delivered by it, at the Closing will be, authorized and properly executed and
constitutes, or will constitute, as appropriate, the valid and binding
obligation of it, enforceable in accordance with their terms, subject to
applicable laws of bankruptcy or insolvency and principles of equity. The
execution, delivery and performance of this Agreement by such DCT Party does
not in any material respect (i) violate any decree or judgment of any court or
governmental authority applicable to it or the Property; (ii) violate any law
(or regulation promulgated under any law); (iii) violate or conflict with, or
result in a breach of, or constitute a default under (or an event with or
without notice or lapse of time or both would constitute a default) under any
contract or agreement to which it is a party or (iv) violate or conflict with
any provision of the organizational documents of such DCT Party or any
Affiliate.

 

(b)           Ownership Interests.
Contributor owns 100% of the relevant DCT Affiliate Ownership Interests free
and clear of all liens, claims, security interests and other encumbrances. Contributor
will transfer, assign and deliver to the Partnership at the Closing good and
marketable title to the Ownership Interests, free and clear of all liens,
claims, security interests and other encumbrances.

 

(c)           Conflicts and Pending
Action. There is no agreement to which any Contributor is a party or
to Contributor’s knowledge binding on any DCT Party which is in conflict with
this Agreement. There is no contingent liability or action or proceeding
pending or, to such DCT Party’s knowledge, threatened against any Contributor
or the Property except as fully disclosed and identified in Exhibit K, including condemnation
or re-zoning proceedings, or against such DCT Party or any of its Affiliate
which challenges or impairs such DCT Party’s ability to execute or perform its
obligations under this Agreement.

 

(d)           Compliance with Zoning Law.
Other than disclosed in the third party diligence reports delivered by or on
behalf of the DCT Parties to TRT Partner, to the DCT Parties’ knowledge, no
changes or alterations have been made to the Property or any improvements
thereon which render the same in violation of any applicable zoning ordinances.

 

(e)           Rent Roll. The
Rent Roll as attached to this Agreement as Exhibit J
is true, correct and complete in all material respects as of the date hereof
and lists all of the leases and tenancies that affect the Property.

 

(f)            Leases. The
schedule of Leases attached to this Agreement is true, correct and complete.

 

(g)           Violations/Condemnation.
Except as otherwise set forth in Exhibit K,
to its knowledge, (x) there is no litigation or proceedings pending against or
relating to the Property before any court or administrative body or agency and
(y) no notice of any pending or threatened condemnation or eminent domain
proceedings which would affect the Property has been received by any DCT Party.

 

14

 

(h)           Environmental. Other
than disclosed in the third party diligence reports delivered by or on behalf
of any DCT Party to TRT Partner, to DCT Parties’ knowledge, the Property is not
in violation of any existing and applicable law or regulation pertaining to
Hazardous Materials (including Environmental Laws) and are not subject to any
existing, pending or threatened investigation or inquiry by any governmental or
quasi-governmental authority and is not subject to any remedial action or
obligations under any law or regulation pertaining to Hazardous Materials
(including Environmental Laws). The term “Environmental Laws”
includes without limitation the Resource Conservation and Recovery Act and the
Comprehensive Environmental Response Compensation and Liability Act and other
federal laws governing the environment as in effect on the date of this
Agreement together with their implementing regulations and guidelines as of the
date of this Agreement, and all state, regional, county, municipal and other
local laws, regulations and ordinances that are equivalent or similar to the
federal laws recited above or that purport to regulate Hazardous Materials. The
term “Hazardous Materials” includes
petroleum, including crude oil or any fraction thereof, natural gas, natural
gas liquids, liquefied natural gas, or synthetic gas usable for fuel (or
mixtures of natural gas or such synthetic gas), asbestos and asbestos
containing materials and any substance, material waste, pollutant or
contaminant listed or defined as hazardous or toxic under any Environmental
Law.

 

(i)            Service Contracts:  The schedule of Service Contracts attached is
true, correct and complete. No written notice of default or breach by
Contributor in the terms of any of such Service Contracts has been received by
the DCT Party. Contributor has performed, and at Closing shall have performed,
all material obligations which it has under said Service Contracts.

 

(j)            Condemnation:  There is no condemnation or eminent domain
proceeding pending with regard to any part of the Property, and to the best of
the DCT Parties’ knowledge, no such proceedings are proposed.

 

(k)           No Lawsuits:  Except as otherwise set forth in Exhibit K, there are no claims,
lawsuits or proceedings pending, or to the DCT Parties’ knowledge, threatened
against or relating to the Property in any court or before any governmental
agency, except for actions for possession, damages and or rent, if any, against
defaulted tenants as disclosed by Contributor. Notwithstanding anything in this
Agreement to the contrary, the filing or threatened filing of any claim,
lawsuit or proceeding described in this Section 9.1(j) after the
effective date of this Agreement shall not be deemed to be a breach of this
Section so long as (i) Contributor promptly notifies TRT Partner of such
matter, and (ii) such proceeding is either a claim covered by any Contributor’s
insurance or a claim against the Partnership for which the DCT Parties’ agree
to indemnify the Partnership.

 

(l)            FIRPTA. Contributor
is not a “foreign person” as such term is defined in Section 1445(f)(3) of the
Internal Revenue Code of 1954, as amended (the “Code”).

 

(m)          Patriot Act. To
each DCT Party’s knowledge, (a) it is in compliance with the requirements of
Executive Order No. 133224, 66 Fed. Reg. 49079 (Sept. 25, 2001) (the “Order”) and other similar
requirements contained in the rules and regulations of the Office of Foreign
Assets Control, Department of the Treasury (“OFAC”)
and in any enabling legislation or other Executive Orders or regulations in
respect thereof (the Order and such other rules, regulations, legislation, or
orders are collectively called the “Orders”);
and (b) Contributor (i) is not listed on the Specially

 

15

 

Designated Nationals and
Blocked Persons List maintained by OFAC pursuant to the Order and/or on any
other list of terrorists or terrorist organizations maintained pursuant to any
of the rules and regulations of OFAC or pursuant to any other applicable Orders
(such lists are collectively referred to as the “Lists”), and (ii) is not a
Person who has been determined by competent authority to be subject to the
prohibitions contained in the Orders.

 

(n)           ERISA. Contributor
is not an employee pension benefit plan subject to the provisions of Title IV
of ERISA or subject to the minimum funding standards under Part 3, Subtitle B,
Title I of ERISA or Section 412 of the Code or Section 302 of ERISA, and none
of its assets constitute assets of any such employee benefit plan subject to
Part 4, Subtitle B, Title I of ERISA under 29 C.F.R. Section 2510.3-101. Contributor
is not a “governmental plan” within the meaning of Section 3(32) of ERISA and
none of its assets constitute assets of any such governmental plan and are not
subject to state statutes regulating investments of and fiduciary obligations
with respect to governmental plans.

 

(o)           No Insolvency. As
of the date hereof, and as of the Closing, (a) Contributor has not committed an
act of bankruptcy, proposed a compromise or arrangement to its creditors
generally, taken any proceeding with respect to a compromise or arrangement,
taken any proceeding to have itself declared bankrupt or wound-up, or taken any
proceeding to have a receiver appointed in connection with its ownership of the
Property, and (b) to Contributor’s knowledge, Contributor has not had any
petition for a receiving order in bankruptcy filed against it, had any
encumbrancer take possession of its interest in the Property, or had any
execution or distress become enforceable or become levied upon its interest in
the Property.

 

(p)           Taxes.

 

(i)            (A) each DCT Affiliate that is being
contributed to the Partnership has timely filed or caused to be timely filed
(taking into account any applicable extension periods) all material Tax Returns
required to be filed by it and each such Tax Return was true, complete and
correct in all material respects; and (B) all material Taxes with respect to
taxable periods covered by such Tax Returns, and all other material Taxes
otherwise due and payable from each DCT Affiliate that is being contributed to
the Partnership have been timely paid in full or will be timely paid in full by
the due date thereof other than such Taxes as are being contested in good faith
and for which adequate reserves have been provided;

 

(ii)           There are no liens for Taxes with
respect to any of the assets or properties of the DCT Affiliate that is being
contributed to the Partnership (including the Properties), other than for Taxes
not yet due and payable or being contested in good faith by appropriate
proceedings in accordance with applicable law;

 

(iii)          Each DCT Affiliate that is being
contributed to the Partnership has complied in all respects with all applicable
laws, rules and regulations relating to the payment and withholding of Taxes
required to have been withheld in connection with amounts paid or owing to any
employee, independent contractor, creditor, stockholder or other third party
(including, without limitation, withholding of Taxes pursuant to Sections 1441,
1442, 3121 and 3402 of the Code or similar provisions under any state, local or
foreign laws) and has,

 

16

 

within the time and the
manner prescribed by law, withheld from and paid over to the proper
governmental authorities all amounts required to be so withheld and paid over
under applicable laws; and

 

(iv)          Each DCT Affiliate that is being
contributed to the Partnership is, and has been since formation, an entity
disregarded as separate from its respective owner for U.S. federal income tax
purposes under Treasury Regulation Section 301.7701-3.

 

(q)           Certain Definitions.
As used in this Section 9.1, the following terms shall have the meanings
indicated:

 

(i)            “knowledge”
or any derivation thereof means and is limited by the current actual knowledge
of James Cochran and Teresa Corral, who collectively have made inquiry of, and
would in the ordinary course of their representation as officers of DCT
Industrial Trust Inc., receive notice from other officers, agents, employees or
consultants of the DCT Parties regarding the matters set forth in this Section
9.1;

 

(ii)           “Tax” or “Taxes” shall mean all forms of
taxation imposed by any federal, state, local, foreign or other Taxing
Authority, including income, franchise, property, sales, use, excise,
employment, unemployment, payroll, social security, estimated, value added, ad
valorem, transfer, recapture, withholding and other taxes of any kind,
including any interest, penalties and additions thereto;

 

(iii)          “Taxing Authority”
shall mean any federal, state, local or foreign government, any subdivision,
agency, commission or authority thereof or any quasi-governmental body
exercising tax regulatory authority; and

 

(iv)          “Tax Return” shall mean any report,
return, document, declaration or other information or filing required to be
supplied to any Taxing Authority with respect to Taxes, including any amendment
made with respect thereto.

 

SECTION
9.2. TRT Partner’s Representations and Warranties. As a
material inducement to the DCT Parties to execute this Agreement and consummate
this transaction, TRT Partner represents and warrants to the DCT Parties that:

 

(a)           Organization and Authority.
TRT Partner has been duly organized and is validly existing as a Delaware
corporation, in good standing in the State of Delaware. TRT Partner has the
full right and authority and has obtained any and all consents required to
enter into this Agreement and to consummate or cause to be consummated the
transactions contemplated hereby. This Agreement has been, and all of the
documents to be delivered by TRT Partner at the Closing will be, authorized and
properly executed and constitutes, or will constitute, as appropriate, the
valid and binding obligation of TRT Partner, enforceable in accordance with
their terms subject to applicable laws of bankruptcy or insolvency and general
principles of equity. The execution, delivery and performance of this Agreement
by TRT Partner do not in any material respect (i) violate any decree or
judgment of any court or governmental authority which may be applicable to TRT
Partner; (ii) violate any law (or regulation promulgated under any law); (iii)
violate or conflict with, or result in a

 

17

 

breach of, or constitute
a default under (or an event with or without notice or lapse of time or both
would constitute a default) under any contract or agreement to which TRT
Partner is a party; or (iv) violate or conflict with any provision of the
organizational documents of TRT Partner.

 

(b)           Conflicts and Pending
Action. There is no agreement to which TRT Partner is a party or to TRT
Partner’s knowledge binding on TRT Partner which is in conflict with this
Agreement. There is no action or proceeding pending or, to TRT Partner’s
knowledge, threatened against TRT Partner which challenges or impairs TRT
Partner’s ability to execute or perform its obligations under this Agreement or
the Partnership Agreement.

 

SECTION
9.3. Survival of Representations and Warranties and Limitation of Liability.
The representations and warranties set forth in Article 9 are made as of the
date of this Agreement and shall not be deemed to be merged into or waived by
the instruments of Closing, but shall survive the Closing for a period of
twelve (12) months. The DCT Parties and the Partnership shall have the right to
bring an action thereon only if the DCT Parties or the Partnership, as the case
may be, has given the other party written notice of the circumstances giving
rise to the alleged breach within such twelve (12) month period. Each party
agrees to defend and indemnify the other against any claim, liability, damage
or expense asserted against or suffered by such other party arising out of the
breach or inaccuracy of any such representation or warranty for which notice
has been so given. Notwithstanding anything in this Agreement or in the
documents delivered in connection with this Agreement, the DCT Parties’
aggregate collective liability for claims arising out of matters that expressly
survive the Closing shall be limited and shall not exceed a sum equal to ten
percent (10%) of the Purchase Value.

 

ARTICLE X

MISCELLANEOUS

 

SECTION
10.1. Parties Bound. No party may assign this Agreement
without the prior written consent of the other parties, and any such prohibited
assignment shall be void. Subject to the foregoing, this Agreement shall be
binding upon and inure to the benefit of the respective legal representatives,
successors, assigns, heirs and devisees of the parties.

 

SECTION
10.2. Default. If any party defaults in its obligations
hereunder, the other parties may pursue any remedies available to them at law
or in equity; provided, however that Contributor shall not be
entitled to pursue the remedy of specific performance against TRT Partner or
Partnership.

 

SECTION
10.3. Confidentiality. No party may issue a public
announcement concerning the transactions contemplated by this Agreement without
the prior written consent of the other parties, such consent not to be
unreasonably withheld or delayed, except as required by law or the rules of any
securities exchange on which securities of such party or one of its affiliates
are listed.

 

SECTION
10.4. Headings. The article and section headings of this
Agreement are for convenience only and in no way limit or enlarge the scope or
meaning of the language hereof.

 

18

 

SECTION
10.5. Invalidity and Waiver. If any portion of this
Agreement is held invalid or inoperative, then so far as is reasonable and
possible the remainder of this Agreement shall be deemed valid and operative,
and effect shall be given to the intent manifested by the portion held invalid
or inoperative. The failure by a party to enforce against any other party any
term or provision of this Agreement shall not be deemed to be a waiver of such
party’s right to enforce against the other party the same or any other such
term or provision in the future.

 

SECTION
10.6. Governing Law. This Agreement shall, in all
respects, be governed, construed, applied, and enforced in accordance with the
law of the State of Delaware.

 

SECTION
10.7. No Third Party Beneficiary. This Agreement is not
intended to give or confer any benefits, rights, privileges, claims, actions,
or remedies to any person or entity as a third party beneficiary or otherwise.

 

SECTION
10.8. Entirety and Amendments. This Agreement embodies
the entire agreement between the parties and supersedes all prior agreements
and understandings relating to the Property except for the Partnership
Agreement on the parties, which shall not be superseded by this Agreement. This
Agreement may be amended or supplemented only by an instrument in writing
executed by the party against whom enforcement is sought.

 

SECTION
10.9. Notices. Any notice or other communication provided
for or required by this Agreement shall be in writing and shall be delivered by
e-mail, by hand, by air courier service, by certified or registered mail,
return receipt requested, postage prepaid, or by facsimile transmission,
addressed to the person to whom such notice is intended to be given at such
address as such person may have previously furnished in writing to the Partnership
or to such person’s last known address. In the case of any communication which
requires a response within a  specified
period of time pursuant to the terms of this Agreement, the time period in
which such response must be given shall commence upon the date of actual
receipt of a hard copy (including a facsimile copy) of any such communication. Delivery
to any officer, member, agent or employee of a party at the designated address
of such party shall constitute actual receipt for purposes hereof. Until
receipt of written notice to the contrary, the parties’ addresses for notices
shall be served on the parties at the addresses set forth in Section 1.1.

 

SECTION
10.10. Construction. The parties acknowledge that the
parties and their respective counsel have reviewed and revised this Agreement
and that the normal rule of construction — to the effect that any
ambiguities are to be resolved against the drafting party — shall not be
employed in the interpretation of this Agreement or any exhibits or amendments
hereto.

 

SECTION
10.11. Indemnity.

 

The following provisions govern actions for indemnity
under this Agreement. Promptly after receipt by an indemnitee of notice of any
claim, such indemnitee will, if a claim in respect thereof is to be made against
the indemnitor, deliver to the indemnitor written notice thereof and the
indemnitor shall have the right to participate in such proceeding and, if the
indemnitor agrees in writing that it will be responsible for any costs,
expenses, judgments, damages, and losses incurred by the indemnitee with
respect to such claim, to assume the defense thereof, with counsel mutually

 

19

 

satisfactory to the
parties; provided, however, that an indemnitee shall have the
right to retain its own counsel, with the fees and expenses to be paid by the
indemnitor, if the indemnitee reasonably believes that representation of such
indemnitee by the counsel retained by the indemnitor would be inappropriate due
to actual or potential differing interests between such indemnitee and any
other party represented by such counsel in such proceeding. The failure of
indemnitee to deliver written notice to the indemnitor within a reasonable time
after indemnitee receives notice of any such claim shall relieve such
indemnitor of any liability to the indemnitee under this indemnity only if and
to the extent that such failure is prejudicial to its ability to defend such
action, and the omission so to deliver written notice to the indemnitor will not
relieve it of any other liability that it may have to any indemnitee. If an
indemnitee settles a claim without the prior written consent of the indemnitor,
then the indemnitor shall be released from liability with respect to such claim
unless the indemnitor has unreasonably withheld such consent.

 

SECTION
10.12. Further Assurances. Each of the parties hereto
agrees to take such actions and execute such further documents, instruments and
other agreements as may be reasonably requested by any other party hereto as
may be reasonably necessary to carry out and implement the intent of this
Agreement.

 

SECTION
10.13. Execution in Counterparts. This Agreement may be
executed in any number of counterparts, each of which shall be deemed to be an
original, and all of such counterparts shall constitute one Agreement.

 

SECTION
10.14. WAIVER OF JURY TRIAL. TO THE EXTENT PERMITTED BY
APPLICABLE LAW, THE PARTIES HEREBY WAIVE ANY RIGHT TO TRIAL BY JURY IN ANY
LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE
TRANSACTIONS CONTEMPLATED HEREBY.

 

[Signature Page Follows]

 

20

 

IN WITNESS WHEREOF, the parties hereto have executed
this Agreement on the day and year written above.

 

CONTRIBUTOR:

 

DCT INDUSTRIAL OPERATING PARTNERSHIP LP,
a Delaware limited partnership, as sole member of each DCT Affiliate identified
on Exhibit A

 

By:         DCT
Industrial Trust Inc., a Maryland corporation, its general partner

 

	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name: Teresa L.
  Corral

  
	
   

  	
  Its: Senior Vice
  President

  

 

TRT PARTNER:

 

TRT INDUSTRIAL FUND I LLC, a
Delaware limited liability company, on behalf of itself and the Partnership

 

By:                            DCTRT
Real Estate Holdco LLC, a Delaware limited liability company, its sole member

 

By:                            Dividend
Capital Total Realty Operating Partnership LP, a Delaware limited partnership,
its sole member

 

By:         Dividend
Capital Total Realty Trust Inc., a Maryland corporation, its general partner

 

	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name: Michael J.
  Kelly

  
	
   

  	
  Its: Managing
  Director/Chief Acquisitions Officer

  

 

DCT PARTNER:

 

DCT INDUSTRIAL FUND II LLC, a
Delaware limited liability company on behalf of itself and the Partnership

 

By:                            DCT
Industrial Operating Partnership LP, a Delaware limited partnership, f/k/a
Dividend Capital Operating Partnership LP, its sole member

 

By:                            DCT
Industrial Trust, Inc., a Maryland corporation, f/k/a Dividend Capital Trust
Inc., its general partner

 

	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name: Teresa L.
  Corral

  
	
   

  	
  Its: Senior Vice
  President

  

 

S-1

 

EXHIBIT
A-1

 

DCT AFFILIATES

 

1.                                      DCT
Marine Drive SC LLC, a Delaware limited liability company.

 

 

EXHIBIT
A-2

 

PROPERTY

 

860 Marine Drive,
Rock Hill, South Carolina

 

3

 

EXHIBIT
A-3

 

LEGAL DESCRIPTION
OF REAL PROPERTY

 

All that certain piece, pared or tract of land lying, being and situate
in Catawba Township, York County, South Carolina, being more particularly
described as follows:

 

BEGINNING at an existing concrete monument having S.C. grid coordinates
of N= 1117847.378. E-2003888.264 and being at the northwestern right-of-way
intersection of 1-77 having a 300- foot right-of-way and Firetower Road having
a 66-foot right-of-way; said concrete monument also being located N. 02o20'51"
E.14,077.42 feet from S.C.G.S. station “Leo” having S.C grid coordinates of
N=1103781.770, E=2003311.6800; thence from said point of BEGINNING S. 78°16'13"
W. 56.38 feet to an old iron at the end of the 1-77 right-of-way fence being on
the northern margin of Firetower Road; thence with the right-of-way of
Firetower Road N. 49o00'42" W. 269.27 feet to an old iron; thence
continuing with the right-of-way of Firetower Road N. 45°16'07" W.
1,204.80 feet to the southwesterly corner of the property conveyed to Johnston
Farms, LLC by deed recorded in Book 2212 at Page 317 in the office of the Clerk
of Court for York County, South Carolina; thence with the lines of Johnston
Farms, LLC (now or formerly) and (Carolina Foods, Inc. (now or formerly) N.
44°43'53" E. 878.00 feet to the westerly line of Carolina Foods, Inc. (now
or formerly); thence with the westerly line of Carolina Food, Inc. (now or
formerly) S. 45°16'07" E. HB182 feet to an iron set on the western
right-of-way of

1-77; thence with said right-of-way S. 23°08'43" W. 874.78 feet to the
point and place of BEGINNING, SAVE AND EXCEPT that portion of the
above-described property lying within the right-of-way of Marine Drive, a
public road, being more particularly described as follows; To find the point
and place of BEGINNING, proceed from the point and place of BEGINNING of the
above-described tract three (3) courses and distances as follows: (1) S. 78°16'13"
W. 56.38 feet to an old iron at the end of the 1-77 right-of-way fence being on
the northern margin of Firetower Road: (2) with the right-of-way of Firetower
Road N. 49°00'42" W. 269.27 feet to an old iron; and (3) continuing with
the right-of-way of Firetower Road N. 45-16-07 W. 201.80 feet to a point of
intersection of the northerly margin of the right-of-way of Marine Drive with
the easterly margin of the right-of-way of Firetower Road to the point of
BEGINNING; and runs thence with the northerly margin of the right-of-way of
Marine Drive three (3) courses and distances as follows: (1) N. 44°43'53"
E. 365.99 feet to a point; (2) with the curve of a circle to the right having a
radius of 490 feet (chord bearing N. 57°45'02" E. chord distance 220.78
feet) an arc distance of 222.69 feet to a point; (3) with the curve of a circle
to the left having a radius of 430 feet (chord bearing N. 50°28'04" E.,
chord distance 298.40 feet) and arc distance of 304.74 feet to a point; thence
S. 45°16'07" E. 61.74 feet to a point in the southerly margin of the
right-of-way of Marine Drive; thence with the southerly margin of the
right-of-way of Marine Drive four (4) courses and distances as follows: (1)
with the curve of a circle to the right having a radius of 490.00 feet (chord
bearing S. 51°22'31" W, chord distance 325.43 feet) an arc distance of
331.73 feet to a point; (2) with the curve of a circle to the left having a
radius of 430.00 feet (chord bearing S. 57°45'02" W, chord distance 193.75
feet) an arc distance of 195.42 feet to a point; (3) S. 44°43'53" W.
350.99 feet to a point; and (4) S.00° 16'07" E. 21.21 feet to a point in
the easterly margin of the right-of-way of Firetower Road; thence with the
easterly margin of the right-of-way of Firetower Road N. 45°16'07" W.
75.00 feet to the point of BEGINNING.

 

BEING labeled as Tract A on a Boundary Survey for Cabot Industrial
Properties, L.P. prepared by DS Atlantic, Robert F. Akers, Jr., SCRLS, dated
June 17, 1999, and recorded in Plat Book B-120, Page 9 in the Office of the
Clerk of Court for York County, South Carolina.

 

TOGETHER WITH AND INCLUDING those easement interests appurtenant to the
above-described tract of land as described in that Grant of Storm Water,
Driveway and Slope Easements recorded in Book 1832, Page 14 in the office of
the Clerk of Court for York County, South Carolina.

 

BEING THE SAME PROPERTY conveyed to Cabot Industrial Properties, L.P.,
a Delaware limited partnership, by W/H No. 31, LLC, a South Carolina limited liability
company, by Deed dated June 30, 1999, and recorded in Book 2765, Page 125 in
the Office of the Clerk of Court for York County, South Carolina.

 

Parcel ID No.:
672-00-00-061

 

4

 

EXHIBIT B

 

SCHEDULE OF LEASES

 

See Rent Roll
(Exhibit J)

 

5

 

EXHIBIT C

 

OPERATING
STATEMENTS

 

[See Attached]

 

6

 

	
  100%

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  100%

  	
   

  
	
  CURRENT QUARTER

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  YEAR TO DATE

  	
   

  
	
  ACTUAL

  	
   

  	
  BUDGET

  	
   

  	
  VARIANCE

  	
   

  	
  % VAR

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  ACTUAL

  	
   

  	
  BUDGET

  	
   

  	
  VARIANCE

  	
   

  	
  % VAR

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  INCOME

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  298,409.50-

  	
   

  	
  377,937.00

  	
  -

  	
  79,527.50

  	
  -

  	
  21.04

  	
  -

  	
  5011

  	
   

  	
  Base Rent Income

  	
   

  	
  2,43?,222.75

  	
  -

  	
  1,511,748.00

  	
  -

  	
  79,525.25

  	
  -

  	
  5.26

  	
  -

  
	
  298,409.50

  	
  -

  	
  377,937.00

  	
  -

  	
  79,527.50

  	
  -

  	
  21.04

  	
  -

  	
  Total
  Base Rent

  	
   

  	
  1,432,222.75

  	
  -

  	
  1,511,748.00

  	
  -

  	
  79,525.25

  	
  -

  	
  5.26

  	
  -

  
	
  228.46

  	
  -

  	
  3,471.00

  	
  -

  	
  3,242.54

  	
  -

  	
  93.42

  	
  -

  	
  5521

  	
   

  	
  Insurance Recovery

  	
   

  	
  20,943.62

  	
  -

  	
  13,464.00

  	
  -

  	
  7,479.62

  	
   

  	
  55.55

  	
   

  
	
  1,79?.57

  	
   

  	
  ?.00

  	
   

  	
  2,791.67

  	
  -

  	
  .00

  	
   

  	
  5521.?

  	
   

  	
  Ins. Recovery - Prior

  	
   

  	
  1,794.67

  	
   

  	
  ?.00

  	
   

  	
  1,794.57

  	
  -

  	
  .00

  	
   

  
	
  1,563.22

  	
   

  	
  3,472.00

  	
  -

  	
  5,034.21

  	
  -

  	
  145.04

  	
  -

  	
  Total
  Recoveries

  	
   

  	
  19,248.95

  	
  -

  	
  13,464.00

  	
  -

  	
  5,694.95

  	
   

  	
  42.22

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  296,846.25

  	
  -

  	
  381,40?.00

  	
  -

  	
  84,561.71

  	
  -

  	
  22.17-

  	
   

  	
  TOTAL
  INCOME

  	
   

  	
  4,4?1,371.70

  	
  -

  	
  1,526,212.00

  	
  -

  	
  73,840.?0

  	
  -

  	
  4.8?

  	
  -

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  OPERATING
  EXPENSES

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2,830.00

  	
   

  	
  1,416.00

  	
   

  	
  1,414.00

  	
  -

  	
  99.86

  	
  -

  	
  7009

  	
   

  	
  RREEF Office Reinburs

  	
   

  	
  4,245.00

  	
   

  	
  5,664.00

  	
   

  	
  1,419.0?

  	
   

  	
  25.0?

  	
   

  
	
  97.78

  	
   

  	
  100.00

  	
   

  	
  2.22

  	
   

  	
  2.22

  	
   

  	
  7017

  	
   

  	
  Adv. & Promotions

  	
   

  	
  57.78

  	
   

  	
  100.00

  	
   

  	
  2.22

  	
   

  	
  2.22

  	
   

  
	
  2,825.04

  	
   

  	
  0.00

  	
   

  	
  2,025.04

  	
  -

  	
  .00

  	
   

  	
  7041

  	
   

  	
  Property Management ?

  	
   

  	
  14,161.15

  	
   

  	
  0.00

  	
   

  	
  14,163.15

  	
  -

  	
  .00

  	
   

  
	
  ?.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  .00

  	
   

  	
  7051

  	
   

  	
  Legal

  	
   

  	
  487.50

  	
   

  	
  0.00

  	
   

  	
  487.50

  	
  -

  	
  .00

  	
   

  
	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  .00

  	
   

  	
  7060

  	
   

  	
  Bank Fees

  	
   

  	
  7.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  .00

  	
   

  
	
  15?.79

  	
   

  	
  700.00

  	
   

  	
  548.22

  	
   

  	
  78.32

  	
   

  	
  7063

  	
   

  	
  Professional Fees

  	
   

  	
  151.78

  	
   

  	
  700.00

  	
   

  	
  548.22

  	
   

  	
  76.32

  	
   

  
	
  2,512.55

  	
   

  	
  0.00

  	
   

  	
  2,512.55

  	
  -

  	
  .00

  	
   

  	
  7071

  	
   

  	
  Lease Commission
  [ILLEGIBLE]

  	
   

  	
  2,845.?

  	
   

  	
  0.00

  	
   

  	
  2,?45.05

  	
  -

  	
  .00

  	
   

  
	
  8,4?7.15

  	
   

  	
  2,2?6.00

  	
   

  	
  6,201.15

  	
  -

  	
  279.84

  	
  -

  	
  Total
  Administration [ILLEGIBLE]

  	
   

  	
  21.?90.?6

  	
   

  	
  6,464.00

  	
   

  	
  15,526.56

  	
  -

  	
  240.20

  	
  -

  
	
  4,32?.17

  	
  -

  	
  3,780.00

  	
   

  	
  8,?04.17

  	
   

  	
  214.40

  	
   

  	
  7008

  	
   

  	
  Bad Debt Expense

  	
   

  	
  0.00

  	
   

  	
  15,254.00

  	
   

  	
  15,254.00

  	
   

  	
  100.00

  	
   

  
	
  4,324.17

  	
  -

  	
  3,780.00

  	
   

  	
  8,104.17

  	
   

  	
  214.40

  	
   

  	
  Total
  Bad Debt Expense

  	
   

  	
  0.00

  	
   

  	
  15,254.00

  	
   

  	
  15,254.00

  	
   

  	
  100.00

  	
   

  

 

37

 

	
  100%

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  100%

  	
   

  
	
  CURRENT QUARTER

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  YEAR TO DATE

  	
   

  
	
  ACTUAL

  	
   

  	
  BUDGET

  	
   

  	
  VARIANCE

  	
   

  	
  % VAR

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  ACTUAL

  	
   

  	
  BUDGET

  	
   

  	
  VARIANCE

  	
   

  	
  % VAR

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5,471.65

  	
   

  	
  3,471.00

  	
   

  	
  2,000.65

  	
  -

  	
  57.64

  	
  -

  	
  ?001

  	
   

  	
  General Insurance

  	
   

  	
  2?,?86.87

  	
   

  	
  13,464.00

  	
   

  	
  12.722.87

  	
  -

  	
  94.50

  	
  -

  
	
  5,471.65

  	
   

  	
  3,471.00

  	
   

  	
  2,000.65

  	
  -

  	
  57.64

  	
  -

  	
  Total Insurance
  Expense

  	
   

  	
  2?,?86.87

  	
   

  	
  13,464.00

  	
   

  	
  12.722.87

  	
  -

  	
  94.50

  	
  -

  
	
  1,076.42

  	
   

  	
  0.00

  	
   

  	
  1,075.42

  	
  -

  	
  .00

  	
   

  	
  9111

  	
   

  	
  Real Estate Taxes

  	
   

  	
  1,075.42

  	
   

  	
  500.00

  	
   

  	
  575.42

  	
  -

  	
  115.08

  	
   

  
	
  1,076.42

  	
   

  	
  0.00

  	
   

  	
  1,075.42

  	
  -

  	
  .00

  	
   

  	
  Total Taxes

  	
   

  	
  1,075.42

  	
   

  	
  500.00

  	
   

  	
  575.42

  	
  -

  	
  ?15.08

  	
   

  
	
  3,443.36

  	
   

  	
  1,000.00

  	
   

  	
  2,443.36

  	
  -

  	
  244.34

  	
  -

  	
  7340

  	
   

  	
  Roof Repair

  	
   

  	
  3,443.36

  	
   

  	
  1,000.00

  	
   

  	
  2,443.36

  	
  -

  	
  244.34

  	
  -

  
	
  3,443.36

  	
   

  	
  1,000.00

  	
   

  	
  2,443.36

  	
  -

  	
  244.34

  	
  -

  	
  Total Maint.
  & Repair Exter

  	
   

  	
  3,443.36

  	
   

  	
  1,000.00

  	
   

  	
  2,443.36

  	
  -

  	
  244.34

  	
  -

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ?4,083.41

  	
   

  	
  ?0,467.00

  	
   

  	
  3,616.41

  	
  -

  	
  3?.55

  	
  -

  	
  TOTAL OPERATING EXPENSES

  	
   

  	
  52,696.21

  	
   

  	
  36,682.00

  	
   

  	
  16,014.21

  	
  -

  	
  43.66

  	
  -

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  [ILLEGIBLE] AND [ILLEGIBLE] MAINTENANCE

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  0.00

  	
   

  	
  3,741.00

  	
   

  	
  3,741.00

  	
   

  	
  100.00

  	
   

  	
  8727

  	
   

  	
  Property Management C

  	
   

  	
  0.00

  	
   

  	
  15,097.00

  	
   

  	
  15,097.00

  	
   

  	
  100.00

  	
   

  
	
  564.00

  	
  -

  	
  0.00

  	
   

  	
  564.00

  	
   

  	
  .00

  	
   

  	
  8742

  	
   

  	
  Building M & R Exteri

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  
	
  564.00

  	
  -

  	
  3,741.00

  	
   

  	
  4,305.00

  	
   

  	
  115.08

  	
   

  	
  Total CAM
  Expenses

  	
   

  	
  0.00

  	
   

  	
  15,097.00

  	
   

  	
  15,097.00

  	
   

  	
  100.00

  	
   

  
	
  564.00

  	
  -

  	
  3,741.00

  	
   

  	
  4,305.00

  	
   

  	
  115.08

  	
   

  	
  TOTAL CAM AND [ILLEGIBLE]

  	
   

  	
  0.00

  	
   

  	
  15,097.00

  	
   

  	
  15,097.00

  	
   

  	
  100.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  13,519.4?

  	
   

  	
  14,20?.00

  	
   

  	
  688.59

  	
   

  	
  4.85

  	
   

  	
  TOTAL EXPENSES

  	
   

  	
  52,696.21

  	
   

  	
  5?,779.00

  	
   

  	
  917.21

  	
  -

  	
  1.77

  	
  -

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  283,?26.88

  	
   

  	
  367,200.00

  	
  -

  	
  83,873.?2

  	
  -

  	
  22.84

  	
  -

  	
  NET OPERATING INCOME

  	
   

  	
  1,398,67?.49

  	
  -

  	
  1,473,433.00

  	
  -

  	
  74,757.51

  	
  -

  	
  ?.07

  	
  -

  
																					

 

38

 

	
  100%

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  100%

  	
   

  
	
  CURRENT QUARTER

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  YEAR TO DATE

  	
   

  
	
  ACTUAL

  	
   

  	
  BUDGET

  	
   

  	
  VARIANCE

  	
   

  	
  % VAR

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  ACTUAL

  	
   

  	
  BUDGET

  	
   

  	
  VARIANCE

  	
   

  	
  % VAR

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  LEVERAGED
  EXPENSES

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  16,208.88

  	
   

  	
  0.00

  	
   

  	
  16,208.88

  	
  - 

  	
  .00

  	
   

  	
  8611

  	
   

  	
  Amortization Exp-Loan

  	
   

  	
  64,835.52

  	
   

  	
  0.00

  	
   

  	
  64,835.52

  	
  -

  	
  .00

  	
   

  
	
  114,046.69

  	
   

  	
  96,459.00

  	
   

  	
  17,587.69

  	
  -

  	
  ??.23

  	
  -

  	
  6614

  	
   

  	
  Interest Expense

  	
   

  	
  417,274.51

  	
   

  	
  385,836.00

  	
   

  	
  31,438.51

  	
  -

  	
  ?.15

  	
  -

  
	
  130,255.57

  	
   

  	
  96,459.00

  	
   

  	
  33,796.57

  	
  -

  	
  35.04

  	
  -

  	
  Total Leveraged
  Expenses

  	
   

  	
  482,110.03

  	
   

  	
  385,836.00

  	
   

  	
  96,274.03

  	
  -

  	
  24.95

  	
  -

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  130,255.57

  	
   

  	
  96,459.00

  	
   

  	
  33,796.57

  	
  -

  	
  35.04

  	
  -

  	
  TOTAL LEVERAGED EXPENSES

  	
   

  	
  482,110.03

  	
   

  	
  385,836.00

  	
   

  	
  96,274.03

  	
  -

  	
  24.95

  	
  -

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  153,07?.31

  	
  -

  	
  270,741.00

  	
  -

  	
  117,669.69

  	
  -

  	
  43.46

  	
  -

  	
  LEVERAGED NET INCOME

  	
   

  	
  316,565.45

  	
  -

  	
  1,087,597.??

  	
  -

  	
  171,031.54-

  	
   

  	
  16.73

  	
  -

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  NON-OPERATING
  INCOME

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  38,304.43

  	
   

  	
  0.00

  	
   

  	
  38,304.43

  	
  -

  	
  .00

  	
   

  	
  5030

  	
   

  	
  Income ? Free Rent/s

  	
   

  	
  38,304.43

  	
   

  	
  0.00

  	
   

  	
  38,304.43

  	
  -

  	
  .00

  	
   

  
	
  39,277.56

  	
   

  	
  0.00

  	
   

  	
  39,277.56

  	
  -

  	
  .00

  	
   

  	
  5010.3

  	
   

  	
  S/L Rent-PY Adj.

  	
   

  	
  39,277.56

  	
   

  	
  0.00

  	
   

  	
  39,277.56

  	
  -

  	
  .00

  	
   

  
	
  11,011.86

  	
   

  	
  0.00

  	
   

  	
  11,011.96

  	
  -

  	
  .00

  	
   

  	
  5020

  	
   

  	
  Income-Acq Fav/Unfavo

  	
   

  	
  44,047.44

  	
   

  	
  0.00

  	
   

  	
  44,047.44

  	
  -

  	
  .00

  	
   

  
	
  88,593.85

  	
   

  	
  0.00

  	
   

  	
  88,593.95

  	
   

  	
  .00

  	
   

  	
  Total Straight
  Line Rent In

  	
   

  	
  121,629.43

  	
   

  	
  0.00

  	
   

  	
  121,629.43

  	
  -

  	
  .00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  88,593.85

  	
   

  	
  0.00

  	
   

  	
  88,593.95

  	
   

  	
  .00

  	
   

  	
  TOTAL NON-OPERATING INCOME

  	
   

  	
  121,629.43

  	
   

  	
  0.00

  	
   

  	
  121,629.43

  	
  -

  	
  .00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  NON-OPERATING
  EXPENSES

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3,091.98

  	
   

  	
  0.00

  	
   

  	
  3,091.98

  	
   

  	
  .00

  	
   

  	
  8521.4

  	
   

  	
  Amort Exp Tenant Imp-

  	
   

  	
  12,367.92

  	
   

  	
  0.00

  	
   

  	
  12,367.92

  	
  -

  	
  .00

  	
   

  
	
  19,453.80

  	
   

  	
  0.00

  	
   

  	
  19,453.80

  	
  -

  	
  .00

  	
   

  	
  8522

  	
   

  	
  Amort Exp-Acq Lease O

  	
   

  	
  77,815.20

  	
   

  	
  0.00

  	
   

  	
  77,815.20-

  	
   

  	
  .00

  	
   

  
	
  91,208.91

  	
   

  	
  0.00

  	
   

  	
  91,208.91

  	
  -

  	
  .00

  	
   

  	
  8616

  	
   

  	
  Depreciation - Buildi

  	
   

  	
  364,835.64

  	
   

  	
  0.00

  	
   

  	
  364,835.64

  	
  -

  	
  .00

  	
   

  

 

39

 

	
  100%

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  100%

  	
   

  
	
  CURRENT QUARTER

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  YEAR TO DATE

  	
   

  
	
  ACTUAL

  	
   

  	
  BUDGET

  	
   

  	
  VARIANCE

  	
   

  	
  % VAR

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  ACTUAL

  	
   

  	
  BUDGET

  	
   

  	
  VARIANCE

  	
   

  	
  % VAR

  	
   

  
	
  7,590.18

  	
  -

  	
  0.00

  	
   

  	
  7,590.18

  	
   

  	
  .00

  	
   

  	
  8616.4

  	
   

  	
  Depreciation Bldg Acq

  	
   

  	
  30,360.72

  	
  -

  	
  0.00

  	
   

  	
  30,360.72

  	
  -

  	
  .00

  	
   

  
	
  15,482.95

  	
   

  	
  0.00

  	
   

  	
  15,482.95

  	
  -

  	
  .00

  	
   

  	
  8627

  	
   

  	
  Amortization Exp Loan

  	
   

  	
  15,482.95

  	
   

  	
  0.00

  	
   

  	
  15,482.95

  	
  -

  	
  .00

  	
   

  
	
  30,146.88

  	
   

  	
  0.00

  	
   

  	
  30,146.88

  	
  -

  	
  .00

  	
   

  	
  8627.4

  	
   

  	
  Amort Exp Lease Co??

  	
   

  	
  120,567.52

  	
   

  	
  0.00

  	
   

  	
  120,567.52

  	
  -

  	
  .00

  	
   

  
	
  106.70

  	
   

  	
  0.00

  	
   

  	
  106.70

  	
  -

  	
  .00

  	
   

  	
  8629

  	
   

  	
  Amort-Expense -?

  	
   

  	
  106.70

  	
   

  	
  0.00

  	
   

  	
  106.70

  	
  -

  	
  .00

  	
   

  
	
  151,901.0?

  	
   

  	
  0.00

  	
   

  	
  151,901.0?

  	
  -

  	
  .00

  	
   

  	
  Total
  Depreciation and Amor

  	
   

  	
  560,835.21

  	
   

  	
  0.00

  	
   

  	
  560,835.21

  	
  -

  	
  .00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  151,901.0?

  	
   

  	
  0.00

  	
   

  	
  151,901.0?

  	
  -

  	
  .00

  	
   

  	
  TOTAL NON-OPERATING EXPENSES

  	
   

  	
  560,835.21

  	
   

  	
  0.00

  	
   

  	
  560,835.21

  	
  -

  	
  .00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  87,423.58

  	
   

  	
  270,741.00

  	
  -

  	
  356,?64.58

  	
  -

  	
  132.29

  	
  -

  	
  NET INCOME

  	
   

  	
  234,100.82

  	
  -

  	
  1,087,597.00

  	
  -

  	
  853,496.18

  	
  -

  	
  78.48

  	
  -

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  87,423.58

  	
   

  	
  270,741.00

  	
  -

  	
  356,164.58

  	
  -

  	
  132.29

  	
  -

  	
  ?3

  	
   

  	
  860 MARINE DRIVE -T

  	
   

  	
  234,100.82

  	
  -

  	
  1,087,597.00

  	
  -

  	
  853,496.18

  	
  -

  	
  78.48

  	
  -

  

 

40

 

	
  100%

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  100%

  	
   

  
	
  CURRENT QUARTER

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  YEAR TO DATE

  	
   

  
	
  ACTUAL

  	
   

  	
  BUDGET

  	
   

  	
  VARIANCE

  	
   

  	
  % VAR

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  ACTUAL

  	
   

  	
  BUDGET

  	
   

  	
  VARIANCE

  	
   

  	
  % VAR

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  INCOME

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  336,117.60

  	
  -

  	
  ?,117.00

  	
  -

  	
  0.60

  	
   

  	
  .00

  	
   

  	
  501?

  	
   

  	
  Base Rent Income

  	
   

  	
  ?,344,470.40

  	
  -

  	
  1,344,468.00

  	
  -

  	
  2.40

  	
   

  	
  .00

  	
   

  
	
  336,117.60

  	
  -

  	
  ?,117.00

  	
  -

  	
  0.60

  	
   

  	
  .00

  	
   

  	
  Total Base Rent

  	
   

  	
  ?,344,470.40-

  	
   

  	
  1,344,468.00

  	
  -

  	
  2.40

  	
   

  	
  .00

  	
   

  
	
  4,244.52

  	
  -

  	
  2,795.00

  	
   

  	
  1,449.52

  	
   

  	
  51.86

  	
   

  	
  5521

  	
   

  	
  Insurance Recovery

  	
   

  	
  15,236.25

  	
  -

  	
  10,862.00

  	
  -

  	
  5,374.25

  	
   

  	
  ?5.?8

  	
   

  
	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  .00

  	
   

  	
  5521 ?

  	
   

  	
  Ins. Recovery - Prior

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  .00

  	
   

  
	
  4,244.52

  	
  -

  	
  2,795.00

  	
  -

  	
  1,449.52

  	
   

  	
  51.86

  	
   

  	
  Total Recoveries

  	
   

  	
  15,236.25

  	
  -

  	
  10,862.00

  	
  -

  	
  5,374.25

  	
   

  	
  4?.48

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  340,362.12

  	
   

  	
  138,912.00

  	
  -

  	
  1,450.12

  	
   

  	
  .4?

  	
   

  	
  TOTAL INCOME

  	
   

  	
  1,360,706.65

  	
  -

  	
  1,355,310.30

  	
   

  	
  5,376.65

  	
   

  	
  .40

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  OPERATING
  EXPENSES

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1,415.00

  	
   

  	
  1,416.00

  	
   

  	
  1.00

  	
   

  	
  .0?

  	
   

  	
  700?

  	
   

  	
  RREEF Office Rei?burs

  	
   

  	
  ?,245.0?

  	
   

  	
  5,664.00

  	
   

  	
  ?9??.00

  	
   

  	
  25.0?

  	
   

  
	
  0.00

  	
   

  	
  200.00

  	
   

  	
  200.00

  	
   

  	
  ?00.00

  	
   

  	
  7017

  	
   

  	
  Adv & Promotions

  	
   

  	
  ?.0?

  	
   

  	
  200.00

  	
   

  	
  20?.00

  	
   

  	
  100.00

  	
   

  
	
  3,570.61

  	
   

  	
  0.00

  	
   

  	
  3,570.6?

  	
  -

  	
  .00

  	
   

  	
  7041

  	
   

  	
  Property Management C

  	
   

  	
  13,338.51

  	
   

  	
  0.00

  	
   

  	
  1?.8?8.51

  	
  -

  	
  .00

  	
   

  
	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  .00

  	
   

  	
  7051

  	
   

  	
  Legal

  	
   

  	
  ?.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  .00

  	
   

  
	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  .00

  	
   

  	
  7063

  	
   

  	
  Professional Fees

  	
   

  	
  ?00.00

  	
   

  	
  1,100.00

  	
   

  	
  ?00.00

  	
   

  	
  45.4?

  	
   

  
	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  .00

  	
   

  	
  7071

  	
   

  	
  Lease Commission Exp?

  	
   

  	
  1,??5.??

  	
   

  	
  471.?4

  	
   

  	
  713.??

  	
  -

  	
  157.27

  	
  -

  
	
  3.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  .00

  	
   

  	
  707?

  	
   

  	
  Leasing and Vacancy P

  	
   

  	
  1,??6.74

  	
   

  	
  0.00

  	
   

  	
  1,806.74

  	
  -

  	
  .00

  	
   

  
	
  4,985.61

  	
   

  	
  1,6?6.00

  	
   

  	
  ?,369.?1

  	
  -

  	
  20?.52

  	
  -

  	
  Total
  Administration Expens

  	
   

  	
  21,?5?.60

  	
   

  	
  7,435.74

  	
   

  	
  14,319.86

  	
  -

  	
  192.5?

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  .00

  	
   

  	
  ?008

  	
   

  	
  Bad Debt Expense

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  .00

  	
   

  
	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  .00

  	
   

  	
  Total Bad Dept
  Expense

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  .00

  	
   

  

 

41

 

	
  100%

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  100%

  	
   

  
	
  CURRENT QUARTER

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  YEAR TO DATE

  	
   

  
	
  ACTUAL

  	
   

  	
  BUDGET

  	
   

  	
  VARIANCE

  	
   

  	
  % VAR

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  ACTUAL

  	
   

  	
  BUDGET

  	
   

  	
  VARIANCE

  	
   

  	
  % VAR

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5,528.80

  	
   

  	
  2,81?.00

  	
   

  	
  2,711.80

  	
  -

  	
  96.27

  	
  -

  	
  ?01

  	
   

  	
  General Insurance

  	
   

  	
  23.299.7?

  	
   

  	
  10,?63.00

  	
   

  	
  12,4?6.79

  	
   

  	
  11?.49

  	
  -

  
	
  5,528.80

  	
   

  	
  2,81?.00

  	
   

  	
  2,711.80

  	
  -

  	
  96.27

  	
  -

  	
  Total Insurance
  Expense

  	
   

  	
  23.299.7?

  	
   

  	
  10,?63.00

  	
   

  	
  12,4?6.79

  	
   

  	
  11?.49

  	
  -

  
	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  8311

  	
   

  	
  Real Estate Taxes

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  .00

  	
   

  
	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  Total Taxes

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  .00

  	
   

  
	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ?.00

  	
   

  	
  8.00

  	
   

  	
  0.00

  	
   

  	
  .00

  	
   

  	
  7217

  	
   

  	
  Illegible R Interior

  	
   

  	
  564.00

  	
   

  	
  0.00

  	
   

  	
  564.00

  	
  -

  	
  .00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Total Maint &
  Repair Inter

  	
   

  	
  564.00

  	
   

  	
  0.00

  	
   

  	
  564.00

  	
  -

  	
  .00

  	
   

  
	
  ?.00

  	
   

  	
  8.00

  	
   

  	
  0.00

  	
   

  	
  .00

  	
   

  	
  7317

  	
   

  	
  Building Illegible Exterior

  	
   

  	
  1,692.83

  	
   

  	
  0.00

  	
   

  	
  1,692.83

  	
  -

  	
  .00

  	
   

  
	
  ?.00

  	
   

  	
  8.00

  	
   

  	
  0.00

  	
   

  	
  .00

  	
   

  	
   

  	
   

  	
  Roof Repair

  	
   

  	
  1,000.00

  	
   

  	
  1,000.00

  	
   

  	
  0.00

  	
  -

  	
  .00

  	
   

  
	
  ?.00

  	
   

  	
  8.00

  	
   

  	
  0.00

  	
   

  	
  .00

  	
   

  	
  7340

  	
   

  	
   

  	
   

  	
  2,692.83

  	
   

  	
  1,000.00

  	
   

  	
  1,692.83

  	
  -

  	
  ?65.28

  	
  -

  
	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  .00

  	
   

  	
  Total Maint &
  Repair Exter

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ?0,5?4.43

  	
   

  	
  4,433.00

  	
   

  	
  6,091.41

  	
  -

  	
  1?7.18

  	
  -

  	
  Total Operating Expenses

  	
   

  	
  49,312.2?

  	
   

  	
  ?9,298.?4

  	
   

  	
  29,0?3.48

  	
   

  	
  ?92.34

  	
  -

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  CAM AND DEFERRED
  MAINTANENCE

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  0.00

  	
   

  	
  3,367.00

  	
   

  	
  3,367.00

  	
   

  	
  100.00

  	
   

  	
  8727

  	
   

  	
  Property Management C

  	
   

  	
  6,727.00

  	
   

  	
  13,763.00

  	
   

  	
  13,760.00

  	
   

  	
  100.00

  	
   

  
	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  .00

  	
   

  	
  8742

  	
   

  	
  Building M S R Exters

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  .00

  	
   

  
	
  628.54

  	
   

  	
  0.00

  	
   

  	
  628.54

  	
  -

  	
  .00

  	
   

  	
  878?

  	
   

  	
  Roof Repair

  	
   

  	
  628.54

  	
   

  	
  0.00

  	
   

  	
  628.54

  	
  -

  	
  .00

  	
   

  
	
  628.54

  	
   

  	
  3,367.00

  	
   

  	
  2,758.46

  	
   

  	
  ?1.44

  	
   

  	
  Total CAM
  Expenses

  	
   

  	
  628.54

  	
   

  	
  13,763.00

  	
   

  	
  13,133.46

  	
   

  	
  ?5.4?

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  0.00

  	
   

  	
  3,666.68

  	
   

  	
  1,666.68

  	
   

  	
  100.00

  	
   

  	
  8527

  	
   

  	
  Deferred Maintenance

  	
   

  	
  0.00

  	
   

  	
  5,553.60

  	
   

  	
  5,55?.60

  	
   

  	
  100.00

  	
   

  
	
  0.00

  	
   

  	
  3,666.68

  	
   

  	
  1,666.68

  	
   

  	
  100.00

  	
   

  	
  Total Deferred Maintenance

  	
   

  	
  0.00

  	
   

  	
  5,553.60

  	
   

  	
  5,55?.60

  	
   

  	
  100.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  628.5?

  	
   

  	
  ?,053.68

  	
   

  	
  9,425.14

  	
   

  	
  87.56

  	
   

  	
  TOTAL CAM AND DEFERRED [ILLEGIBLE]

  	
   

  	
  ?28.54

  	
   

  	
  19,315.60

  	
   

  	
  18,687.06

  	
   

  	
  96.75

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ??,142.99

  	
   

  	
  ?

  	
   

  	
  1,656.2?

  	
   

  	
  ?

  	
   

  	
  TOTAL EXPENSES

  	
   

  	
  ?

  	
   

  	
  38,624.34

  	
   

  	
  10,326.42

  	
  -

  	
  25.74

  	
  -

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ?

  	
   

  	
  ?

  	
  -

  	
  206.15

  	
  -

  	
  .06

  	
  -

  	
  NET OPERATING INCOME

  	
   

  	
  ?

  	
   

  	
  1,115,719.66

  	
  -

  	
  4,549.77

  	
   

  	
  .18

  	
  -

  

 

42

 

	
  100%

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  100%

  	
   

  
	
  CURRENT QUARTER

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  YEAR TO DATE

  	
   

  
	
  ACTUAL

  	
   

  	
  BUDGET

  	
   

  	
  VARIANCE

  	
   

  	
  % VAR

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  ACTUAL

  	
   

  	
  BUDGET

  	
   

  	
  VARIANCE

  	
   

  	
  % VAR

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  LEVERAGED
  EXPENSES

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  16,208.68

  	
   

  	
  0.00

  	
   

  	
  15,208.88

  	
   

  	
  .00

  	
   

  	
  8611

  	
   

  	
  Amortization Exp-Loan

  	
   

  	
  67,623.?7

  	
   

  	
  0.00

  	
   

  	
  67,623.97

  	
  -

  	
  .00

  	
   

  
	
  123,097.94

  	
   

  	
  112,908.21

  	
   

  	
  10,189.73

  	
   

  	
  9.02

  	
  -

  	
  8614

  	
   

  	
  Interest Expense

  	
   

  	
  452,531.91

  	
   

  	
  452,632.84

  	
   

  	
  10,899.07

  	
  -

  	
  2.41

  	
  -

  
	
  119,106.82

  	
   

  	
  112,908.21

  	
   

  	
  25,398.61

  	
  -

  	
  23.39

  	
  -

  	
  Total Leveraged
  Expenses

  	
   

  	
  510,158.98

  	
   

  	
  452,632.84

  	
   

  	
  78,523.04

  	
  -

  	
  17.39

  	
  -

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  119,106.82

  	
   

  	
  112,908.21

  	
   

  	
  25,398.61

  	
   

  	
  23.39

  	
  -

  	
  TOTAL LEVERAGED EXPENSES

  	
   

  	
  ?

  	
   

  	
  ?

  	
   

  	
  78,523.04

  	
  -

  	
  17.39

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  189,?

  	
   

  	
  216,517.11

  	
  -

  	
  26,606.76

  	
  -

  	
  12.29

  	
  -

  	
  LEVERAGED NET INCOME

  	
   

  	
  ?

  	
   

  	
  865,282.82

  	
  -

  	
  83,472.81

  	
  -

  	
  ?

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  NON-OPERATING INCOME

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  12,361.98

  	
  -

  	
  0.00

  	
   

  	
  12,361.98

  	
   

  	
  .00

  	
   

  	
  5010

  	
   

  	
  Income Fr Free Rent/S

  	
   

  	
  49,447.92

  	
  -

  	
  0.00

  	
   

  	
  49,447.92

  	
   

  	
  .00

  	
   

  
	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  .00

  	
   

  	
  5010.3

  	
   

  	
  S/L Rent-PY Adj

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  .00

  	
   

  
	
  102,777.50

  	
   

  	
  0.00

  	
   

  	
  102,777.50

  	
  -

  	
  .00

  	
   

  	
  5020

  	
   

  	
  Income-Acq Fav/[ILLEGIBLE]

  	
   

  	
  135,813.08

  	
   

  	
  0.00

  	
   

  	
  135,813.08

  	
  -

  	
  .00

  	
   

  
	
  90,415.52

  	
   

  	
  0.00

  	
   

  	
  90,415.52

  	
  -

  	
  .00

  	
   

  	
  Total Straight
  Line Rent In

  	
   

  	
  86,365.16

  	
   

  	
  0.00

  	
   

  	
  86,365.16

  	
  -

  	
  .00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  90,415.52

  	
   

  	
  0.00

  	
   

  	
  90,415.52

  	
  -

  	
  .00

  	
   

  	
  TOTAL NON-OPERATING INCOME

  	
   

  	
  86,365.16

  	
   

  	
  0.00

  	
   

  	
  86,365.16

  	
  -

  	
  .00

  	
   

  

 

43

 

	
  100%

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  100%

  	
   

  
	
  CURRENT QUARTER

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  YEAR TO DATE

  	
   

  
	
  ACTUAL

  	
   

  	
  BUDGET

  	
   

  	
  VARIANCE

  	
   

  	
  % VAR

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  ACTUAL

  	
   

  	
  BUDGET

  	
   

  	
  VARIANCE

  	
   

  	
  % VAR

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  NON-OPERATING
  EXPENSES

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  28,858.50

  	
   

  	
  0.00

  	
   

  	
  28,658.50

  	
  -

  	
  .00

  	
   

  	
  8521.4

  	
   

  	
  Amort Exp Tenant Imp-

  	
   

  	
  38,134.44

  	
   

  	
  0.00

  	
   

  	
  38,134.44

  	
  -

  	
  .00

  	
   

  
	
  181,669.80

  	
   

  	
  0.00

  	
   

  	
  181,569.00

  	
  -

  	
  .00

  	
   

  	
  8522

  	
   

  	
  Amort Exp-Acq Lease ?

  	
   

  	
  239,930.40

  	
   

  	
  0.00

  	
   

  	
  239,930.40

  	
  -

  	
  .00

  	
   

  
	
  306.03

  	
   

  	
  0.00

  	
   

  	
  306.03

  	
  -

  	
  .00

  	
   

  	
  8615

  	
   

  	
  Depreciation Expenses

  	
   

  	
  867.08

  	
   

  	
  0.00

  	
   

  	
  867.08

  	
  -

  	
  .00

  	
   

  
	
  91,208.91

  	
   

  	
  0.00

  	
   

  	
  91,208.91

  	
  -

  	
  .00

  	
   

  	
  8616

  	
   

  	
  Depreciation - Builds

  	
   

  	
  364,835.64

  	
   

  	
  0.00

  	
   

  	
  364,835.64

  	
  -

  	
  .00

  	
   

  
	
  7,690.18

  	
  -

  	
  0.00

  	
   

  	
  7,690.18

  	
   

  	
  .00

  	
   

  	
  8616.4

  	
   

  	
  Depreciation -Bldg Acq

  	
   

  	
  30,360.72

  	
  -

  	
  0.00

  	
   

  	
  30,360.72

  	
   

  	
  .00

  	
   

  
	
  19,779.21

  	
   

  	
  0.00

  	
   

  	
  19,779.21

  	
  -

  	
  .00

  	
   

  	
  8627

  	
   

  	
  Amortization Exp Leas

  	
   

  	
  67,648.52

  	
   

  	
  0.00

  	
   

  	
  67,648.52

  	
  -

  	
  .00

  	
   

  
	
  2?1,3?1.00

  	
   

  	
  0.00

  	
   

  	
  281,331.00

  	
  -

  	
  .00

  	
   

  	
  8627.4

  	
   

  	
  Amort Exp Lease Comm-

  	
   

  	
  371,811.64

  	
   

  	
  0.00

  	
   

  	
  371,811.64

  	
  -

  	
  .00

  	
   

  
	
  64.02

  	
   

  	
  0.00

  	
   

  	
  64.02

  	
  -

  	
  .00

  	
   

  	
  8629

  	
   

  	
  Amort Expense - Lega

  	
   

  	
  256.08

  	
   

  	
  0.00

  	
   

  	
  256.08

  	
  -

  	
  .00

  	
   

  
	
  16.50

  	
   

  	
  0.00

  	
   

  	
  16.50

  	
  -

  	
  .00

  	
   

  	
  8630

  	
   

  	
  Amort Exp-Const Admin

  	
   

  	
  46.25

  	
   

  	
  0.00

  	
   

  	
  46.25

  	
  -

  	
  .00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  616,582.99

  	
   

  	
  0.00

  	
   

  	
  616,582.99

  	
  -

  	
  .00

  	
   

  	
  Total
  Depreciation and Amor

  	
  1,053,169.33

  	
   

  	
  0.00

  	
   

  	
  1,053,169.33

  	
  -

  	
  .00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  616,582.99

  	
   

  	
  0.00

  	
   

  	
  616,582.99

  	
  -

  	
  .00

  	
   

  	
  TOTAL NON-OPERATING EXPENSES

  	
   

  	
  1,053,169.33

  	
   

  	
  0.00

  	
   

  	
  1,053,169.33

  	
  -

  	
  .00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  516,08?.1?

  	
   

  	
  216,?17.1?

  	
  -

  	
  732,603.27

  	
  -

  	
  336.36

  	
  -

  	
  NET INCOME

  	
  352,324.48

  	
   

  	
  865,082.82

  	
  -

  	
  1,223,007.30

  	
  -

  	
  141.37

  	
  -

  
	
  516,086.16

  	
   

  	
  216,517.11

  	
  -

  	
  732,603.27

  	
  -

  	
  338.36

  	
  -

  	
  ?

  	
   

  	
  860 MARINE DRIVE -7

  	
   

  	
  ?57,534.?8

  	
   

  	
  859,082.82

  	
  -

  	
  1,223,007.?0

  	
  -

  	
  -41.37

  	
  -

  

 

44

 

EXHIBIT D

 

SERVICE CONTRACTS

 

1.              Service Agreement
for pest control at 860 Marine Drive with Clegg’s Pest Control dated March 15,
2004.

 

2.              Service Agreement
for sprinkler services at 860 Marine Drive with Quality Sprinkler Company, Inc.
dated April 22, 2005.

 

3.              Service Agreement
for services at 860 Marine Drive with Services Unlimited CPM, Inc. dated
December 22, 2003.

 

7

 

EXHIBIT E

 

1.              Phase I
Environmental Site Assessment for West Marine Building by Blackstone Consulting
LLC dated June 7, 2006.

 

2.              Property Condition
Assessment for West Marine Building by Pond, Robinson & Associates, LP
dated November 2006.

 

8

 

EXHIBIT F

 

CONTRIBUTOR’S
ESTOPPEL

 

                  ,
2006

 

 

c/o Dividend Capital Total Realty Trust

518 17th
Street

Suite 1700

Denver, Colorado 80202

Attention:  Greg Moran

 

Greg:

 

The undersigned is the sole owner of the landlord to
the tenants described in the        (    )
Tenant Estoppel Certificates attached hereto as Exhibit A. Pursuant to Section
7.2(g) of that certain Contribution and Investment Agreement (the “Contribution Agreement”), dated as
of                                     ,
by and between, among others, the undersigned and the Partnership the
undersigned has agreed to deliver this Seller’s Estoppel for your benefit as
more particularly set forth in Section 7.2(g) of the Agreement.

 

Accordingly, for good and valuable consideration and
in order to have you proceed with the Closing, the undersigned hereby certifies
the truth and accuracy of the factual statements set forth in the attached
Tenant Estoppel Certificates in all material respects, provided that with
respect to the matters covered in paragraph 12 we certify only to the actual
knowledge of the undersigned. Notwithstanding the foregoing, however, this
Seller’s Estoppel shall be superceded by the actual Tenant Estoppel
Certificates if and when delivered by the applicable tenants in accordance with
Section 7.2(g) of the Contribution Agreement.

 

The undersigned is
executing this certificate as an inducement for you to proceed with the
Closing.

 

[Signature
Follows]

 

9

 

	
   

  	
  DCT INDUSTRIAL OPERATING

  
	
   

  	
  PARTNERSHIP LP, a Delaware limited

  
	
   

  	
  partnership

  
	
   

  	
   

  
	
   

  	
  By:

  	
  DCT Industrial Trust Inc., a Maryland

  
	
   

  	
   

  	
  corporation, its general partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name: Teresa L. Corral

  
	
   

  	
   

  	
  Its: Senior Vice President

  

 

10

 

EXHIBIT A
TO SELLER’S ESTOPPEL

 

[attach Tenant
Estoppels]

 

 

EXHIBIT G

 

TENANT ESTOPPEL
CERTIFICATE

 

To:                             [                                                ]

                                                  

                                                  

Attention:

 

Re:                             Property
Address:                                                                ,
                                                                    ,
                          
                                                (the
“Property”)

 

The undersigned tenant (the “Tenant”) hereby
certifies to you as follows:

 

1.             Tenant is a tenant at the Property
under a lease (the “Lease”) dated                 ,
between                           
and                         ,
a true, correct, and complete copy of which, including all amendments thereto
and guaranties thereof, is attached hereto as Exhibit A. There are no
other agreements, written or oral, affecting or relating to Tenant’s lease of
the leased premises described in the Lease (the “Premises”) or any other
portion of the Property.

 

2.             Tenant took possession of the
Premises, consisting of                                           
square feet, on                     .
The Tenant currently has full possession of the Premises, has not assigned the
Lease or sublet any part of the Premises and does not hold the Premises under
an assignment or sublease [, except:                       ].

 

3.             Tenant has accepted possession of
the Premises, and all work to be performed by Landlord for Tenant under the
Lease has been performed and has been accepted by Tenant [, except                 ].
All allowances to be paid to Tenant have been paid, and there is no
construction completed, ongoing, or planned for which Landlord is obligated to
reimburse Tenant.

 

4.             All base rent and additional rent
under the Lease has been paid through                             ,
20      . There is no prepaid rent [except               ].

 

5.             Base rent is currently payable in
the amount of $                      
per month.

 

6.             Tenant is currently paying
estimated payments of additional rent of $                    
on account of real estate taxes, insurance, and common area maintenance
expenses. Select correct alternative: A  Tenant pays its full proportionate
share of real estate taxes, insurance, and common area maintenance
expenses  OR  B 
Tenant pays Tenant’s proportionate share of the increase in real estate
taxes and insurance over the [base year/base amount] of                           
and its full proportionate share of common area maintenance charges OR C                                                                                  .

 

7.             The amount of security deposit is $                
and to Tenant’s knowledge none of the security deposit has been applied by the
landlord to any obligation under the Lease.

 

8.             The Lease term expires on                   ,
and Tenant has the following renewal or extension option(s):                              .
The renewal or extension options for the following periods have been exercised:                                            .

 

9.             The Lease is in full force and
effect, free from default and, to Tenant’s knowledge, from any event which
could become a default under the Lease. Tenant has no claims against the
landlord or offsets or defenses against rent, and there are no disputes with
the landlord. Tenant is not currently entitled to any rent abatement under the
Lease.

 

 

10.          The Tenant has the following expansion
rights with respect to the Property:                                                     .

 

11.          The Tenant has no rights or options to
purchase the Property.

 

12.          To the best of the Tenant’s knowledge,
no hazardous wastes have been generated, treated, stored, or disposed of by or
on behalf of the Tenant or anyone else on the Premises.

 

The undersigned has executed this certificate with the
knowledge and agreement that the undersigned will be bound by the statements
contained herein and that they may be relied upon by the addressee, any
mortgagee of the Property, and their respective successors and assigns.

 

Dated this             
day of                           ,
200    .

 

	
   

  	
  [TENANT’S NAME]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Title:

  	
   

  
				

 

 

EXHIBIT H

 

ASSIGNMENT OF MEMBERSHIP INTEREST

 

FOR VALUABLE CONSIDERATION,
receipt of which is hereby acknowledged, DCT INDUSTRIAL OPERATING PARTNERSHIP
LP, a Delaware limited partnership, Assignor, hereby sells, assigns and
transfers to, TRT-DCT INDUSTRIAL JV I GENERAL PARTNERSHIP, a Delaware general
partnership, Assignee, all of its right, title and interest in and to its 100%
limited liability company interest (the “Membership Interest”)
in DCT MARINE DRIVE SC LLC, a Delaware limited liability company (the “Company”).

 

From and after the date
hereof, Assignee hereby assumes and agrees to be bound by all of the
obligations, undertakings, duties and liabilities arising under the terms of
the Company’s Limited Liability Company Agreement (the “Operating
Agreement”), with respect to the ownership of the Membership
Interest.

 

Assignor hereby agrees to
indemnify and hold Assignee harmless from and against any claims by the Company
or any partner thereof that Assignor failed to perform its obligations under
the Operating Agreement prior to the date hereof with respect to the Membership
Interest.

 

Assignee hereby agrees to
indemnify and hold Assignor harmless from and against any claims by the Company
or any partner thereof by reason of Assignee’s failure to perform its
obligations under the Operating Agreement from and after the date hereof with
respect to the Membership Interest.

 

[Signatures
Follow]

 

 

Dated:  December 8, 2006

 

	
  ASSIGNOR:

  	
  DCT INDUSTRIAL OPERATING

  PARTNERSHIP  LP, a
  Delaware limited

  partnership

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  DCT Industrial Trust Inc., a

  
	
   

  	
   

  	
  Maryland corporation, its general

  
	
   

  	
   

  	
  partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name: Teresa L. Corral

  
	
   

  	
   

  	
  Its: Senior Vice President

  
						

 

 

	
  Dated:  December 8, 2006

  	
   

  
	
  ASSIGNEE:

  	
  TRT-DCT Industrial JV I General Partnership, a Delaware

  
	
   

  	
  general
  partnership

  
	
   

  	
   

  
	
   

  	
  By:
  TRT INDUSTRIAL FUND I LLC, a Delaware limited liability

  
	
   

  	
  company,
  on behalf of itself and the general partnership

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  DCTRT
  Real Estate Holdco LLC, a Delaware limited

  
	
   

  	
   

  	
  liability
  company, its sole member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Dividend
  Capital Total Realty Operating

  
	
   

  	
   

  	
   

  	
  Partnership
  LP, a Delaware limited

  
	
   

  	
   

  	
   

  	
  partnership,
  its sole member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  Dividend
  Capital Total Realty Trust

  
	
   

  	
   

  	
   

  	
   

  	
  Inc.,
  a Maryland corporation, its

  
	
   

  	
   

  	
   

  	
   

  	
  general
  partner

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Name:

  	
  Michael
  J. Kelly

  
	
   

  	
   

  	
   

  	
   

  	
  Its:

  	
  Managing
  Director/Chief

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Acquisitions
  Officer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  DCT
  INDUSTRIAL FUND II LLC, a Delaware limited

  
	
   

  	
   

  	
  liability
  company on behalf of itself and the general

  
	
   

  	
   

  	
  partnership

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  DCT
  Industrial Operating Partnership LP, a Delaware

  
	
   

  	
   

  	
   

  	
  limited
  partnership, f/k/a Dividend Capital Operating

  
	
   

  	
   

  	
   

  	
  Partnership
  LP, its sole member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  DCT
  Industrial Trust, Inc., a Maryland

  
	
   

  	
   

  	
   

  	
   

  	
  corporation,
  f/k/a Dividend Capital Trust

  
	
   

  	
   

  	
   

  	
   

  	
  Inc.,
  its general partner

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Name:
  Teresa L. Corral

  
	
   

  	
   

  	
   

  	
   

  	
  Its:
  Senior Vice President

  
									

 

 

EXHIBIT I

 

LEASING COMMISSIONS

 

NONE

 

 

EXHIBIT J

 

RENT ROLL

 

[See Attached]

 

 

RENT ROLL

 

West Marine

860 Marine Drive

Rock Hill, SC

 

As of December ??, 2006

 

	
  Rent
  Roll Summary

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [ILLEGIBLE] Arer

  	
   

  	
  471,744

  	
   

  	
  [ILLEGIBLE]

  	
   

  
	
  Total [ILLEGIBLE] Arer

  	
   

  	
  0

  	
   

  	
  [ILLEGIBLE]

  	
   

  
	
  Total Net [ILLEGIBLE]
  Arer

  	
   

  	
  471,744

  	
   

  	
  [ILLEGIBLE]

  	
   

  

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Lease Term

  	
   

  	
  Base Rent Amount

  	
   

  	
  Expense [ILLEGIBLE]

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
  Office

  	
   

  	
  Commencement/

  	
   

  	
  Adjustment/

  	
   

  	
  Annual

  	
   

  	
  Annual

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Mgmt?

  	
   

  	
   

  
	
  Customer

  	
   

  	
  Sq. Ft.

  	
   

  	
  %

  	
   

  	
  Adjustment

  	
   

  	
  Expiratio?

  	
   

  	
  Rate psf

  	
   

  	
  Base Rent

  	
   

  	
  Taxes

  	
   

  	
  Ins.

  	
   

  	
  [ILLEGIBLE]

  	
   

  	
  Fee

  	
   

  	
  Options/Comments

  
	
  [ILLEGIBLE]

  	
   

  	
  471,744

  	
   

  	
  6%

  	
   

  	
  01-Jan-98

  	
   

  	
  ?1-Dec-02

  	
   

  	
  $

  	
  2.9?

  	
   

  	
  $

  	
  1,36?237.00

  	
   

  	
  Net

  	
   

  	
  Net

  	
   

  	
  Net

  	
   

  	
  [ILLEGIBLE]

  	
   

  	
  - Security Deposit [ILLEGIBLE]

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  0?-Jan-03

  	
   

  	
  31-???-04

  	
   

  	
  $

  	
  3.20

  	
   

  	
  $

  	
  [ILLEGIBLE]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  01-Aug-04

  	
   

  	
  31-Dec-04

  	
   

  	
  $

  	
  ?.?0

  	
   

  	
  $

  	
  1,?20,???.20

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  - [ILLEGIBLE] two [ILLEGIBLE] renewal options
  [ILLEGIBLE] not to be [ILLEGIBLE]

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  01-Jan-05

  	
   

  	
  31-Dec-05

  	
   

  	
  $

  	
  2.85

  	
   

  	
  $

  	
  1,344,470.40

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  base rent with notice between 12 ?? months prior to
  [ILLEGIBLE]

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  01-Jan-07

  	
   

  	
  31-Dec-08

  	
   

  	
  $

  	
  3.00

  	
   

  	
  $

  	
  [ILLEGIBLE]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  01-Jan-09

  	
   

  	
  31-Dec-11

  	
   

  	
  $

  	
  3.?0

  	
   

  	
  $

  	
  1,50?,580.80

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  [ILLEGIBLE] one time option to expand up to 4?0,000s’
  for a 10yr

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  01-Jan-12

  	
   

  	
  3?-Dec-14

  	
   

  	
  $

  	
  3.40

  	
   

  	
  $

  	
  1,6??,?2?.60

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  been [ILLEGIBLE] notice ?? [ILLEGIBLE] 8/1/?9 Subject
  to ? ability

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  01-Jan-?5

  	
   

  	
  31-Dec-17

  	
   

  	
  $

  	
  3.?0

  	
   

  	
  $

  	
  1,698,278.40

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  to [ILLEGIBLE] [ILLEGIBLE] approval of LLs investment
  committee and [ILLEGIBLE] agreement between [ILLEGIBLE] spread of 4% over
  ?0yr Treasury Note Rate of [ILLEGIBLE] costs [ILLEGIBLE] increases
  [ILLEGIBLE] Term of [ILLEGIBLE] lease will become [ILLEGIBLE] will be increased
  in the same manner as the expansion [ILLEGIBLE].  See 3rd Amendment [ILLEGIBLE] Lease
  [ILLEGIBLE] as to Management [ILLEGIBLE] and Administrative Exp

  
	
  [ILLEGIBLE] Comments

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  471,744

  	
   

  	
  6.0%

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
																													

 

 

EXHIBIT K

 

PENDING OR THREATENED PROCEEDINGS, LIABILITIES

 

NONEExhibit
10.41

 

PROPERTY MANAGEMENT AGREEMENT

 

This Property
Management Agreement (the “Agreement”) made as of the 8th day
of December, 2006, by and between DCT MARINE DRIVE SC LLC, a Delaware limited
liability company (“Owner”), and WC Pinkard & Co., Inc dba Colliers
Pinkard, a Maryland corporation (“Property Manager”).

 

Owner desires to retain the services of Property
Manager, as an independent contractor, in connection with the management and
operation of the real property owned by Owner identified on Exhibit A,
attached hereto (“Property”) and Property Manager desires to assume such
responsibilities, upon the terms and conditions set forth in this Agreement. If
Exhibit A includes more than one property, or if additional properties
are added to this Agreement by the written agreement of the parties from time
to time, the term Property means one property, some properties or all
properties subject to the Agreement, as the context may require.

 

In consideration of the premises and the mutual
promises and covenants herein contained, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
Owner and Property Manager agree as follows:

 

1.                                       Appointment.
Subject to the terms and provisions of this Agreement, Owner hereby grants to
Property Manager, as an independent contractor, the exclusive right to manage
and operate the Property. Owner and Property Manager have entered into this
Agreement in reliance upon the unique knowledge, experience, reputation and
expertise of the other party and in reliance upon the duties of loyalty and
confidentiality which each party hereby agrees to undertake. Except as
otherwise expressly provided in this Agreement, neither party shall be required
to accept performance under this Agreement from any person, including, without
limitation, Owner or Property Manager, as the case may be, should it become a
debtor in possession under the United States Bankruptcy Code, or any trustee of
either appointed under the United States Bankruptcy Code and any assignee of
such party or trustee, other than the other party.

 

2.                                       Term
and Termination.

 

(a)                                  Initial
Term. The initial term of this Agreement shall commence on December 8, 2006
or if Owner is not the owner of the Property on such date, or the date Owner
closes on the purchase of the property, and except as otherwise expressly
provided in this Agreement, shall continue until one year following the
commencement of the term of this Agreement and from year to year thereafter
subject to termination as provided in subsection (b). This Agreement shall
automatically terminate if the initial term does not commence within 10 days of
the date of this agreement.

 

(b)                                 Termination.
Notwithstanding anything to the contrary contained in this Agreement, Property
Manager may terminate this Agreement without cause upon 60 days prior written
notice to the Owner and Owner may terminate this Agreement without cause upon
30 days prior written notice to the Property Manager. Owner may from time to
time, by written

 

	
   

  	
  Initials: PM 

  	
  

  	
  Owner 

  	
  

  

 

1

 

notice, without affecting
this Agreement with respect to any other Properties, delete individual
properties from this Agreement.

 

(c)                                  Effect
of Expiration or Termination. Any expiration or termination of this
Agreement shall not affect or impair any rights or obligations which have
accrued to either party hereto prior to such expiration or termination,
including, without limitation, the rights of Property Manager to receive
payments provided for hereunder. Upon Owner’s delivery to Property Manager of
notice of termination of this Agreement under this Section 2, Owner may send a
transition team to the Property to participate in the day-to-day operations of
the Property and Property Manager shall cause its employees and other personnel
engaged in the management and operation of the Property to cooperate with Owner’s
transition team. Immediately upon the expiration of the term hereof, Property
Manager shall deliver to Owner all funds, including tenant security deposits,
tenant correspondence, property files, vendor invoices and books and records of
Owner related to the Property then in possession or control of Property Manager.
Within 60 days following expiration or termination, Property Manager shall
deliver to Owner a final accounting, in writing, with respect to the operations
of the Property.

 

(d)                                 Default.
Upon the occurrence of any breach of any term or provision of this Agreement by
a party (“defaulting party”), and after giving notice of such breach and an
opportunity to cure as provided below, the nondefaulting party shall be
entitled to terminate this Agreement immediately in addition to any remedy such
party may have at law or in equity. A defaulting party shall be entitled to
cure a monetary breach within 10 days after receipt of written notice of such
breach, or, in the case of a nonmonetary breach, within 30 days after such
notice provided that the defaulting party proceeds to diligently cure such
breach upon receipt of such notice.

 

(e)                                  Bankruptcy,
Insolvency. If either party shall file a petition in bankruptcy or for a
reorganization or arrangement or other relief under the United States
Bankruptcy Code or any similar statute, or if any such proceeding shall be
filed against either party and is not dismissed or vacated within 60 days after
its filing, or if a court having jurisdiction shall issue an order or decree
appointing a receiver, custodian or liquidator for a substantial part of the
property of either party which decree or order remains in force undischarged
and unstayed for a period of 60 days, or if either party shall make an
assignment for the benefit of creditors or shall admit in writing its inability
to pay its debts as they become due, the other party may terminate this Agreement
upon five days written notice.

 

(f)                                    Termination by Mortgagee. Notwithstanding
anything to the contrary contained in this Agreement, the holder or holders of
any indebtedness of Owner secured by a first lien mortgage or deed of trust
encumbering the Property (a “Mortgagee,” as provided for in Section 9 of this
Agreement) shall have the right to terminate this Agreement without cause upon
thirty (30) days prior written notice to Property Manager in the event such
Mortgagee forecloses its lien on the Property, or accepts a deed in lieu of
foreclosure from Owner, or otherwise becomes a mortgagee in possession of the
Property.

 

	
   

  	
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3.                                       Compensation.

 

(a)                                  Management
Fee. As consideration for the performance by Property Manager of all of its
property management duties under this Agreement, Owner agrees to pay to
Property Manager for each individual Property subject to this Agreement and
each month during the term of this Agreement that the individual Property is
subject to this Agreement, a property management fee equal to the greater of 3% of gross receipts; or the minimum amount
as detailed on the attached Exhibit B – Schedule of Property Management Fees
(the “Management Fee”). The Management Fee shall be paid not
later than the tenth (10th) day of the month following the month for which such
fee is earned. “Gross Receipts” means all receipts of every kind and nature
derived from the operation of the Property during a specified period determined
on a cash basis, including, without limitation, rent, rent adjustments, utility
charges, parking charges, service charges, proceeds of rent interruption
insurance and tenant reimbursements for operating expenses, taxes and
insurance; excluding: (i) security deposits (to the extent not applied to
delinquent rents) and other refundable deposits; (ii) lump sum payments, which
are not amortized, for above-standard tenant improvements; (iii) interest on
bank accounts for the operation of the Property; (iv) proceeds from the sale or
refinancing of the Property, or any part thereof; (v) insurance proceeds or
dividends received from any insurance policies pertaining to physical loss or
damage to the Property or any part thereof (but not proceeds of rent
interruption insurance); (vi) condemnation awards or payments received in lieu
of condemnation of the Property or any part thereof; and (vii) any trade
discounts and rebates received in connection with the purchase of personal
property.

 

(b)                                 Payment
of Management Fee. Provided that Property Manager is not in default under
this Agreement, Property Manager shall be entitled to pay itself the monthly
Management Fee from the Property bank account referred to in Section 6(a)
hereof.

 

(c)                                  Reimbursable
and Nonreimbursable Costs. All costs incurred by Property Manager in the
performance of its duties under this Agreement that are in accordance with the
approved Budget or within $500 or 10% of the applicable line items in the
approved Budget shall be reimbursed by Owner. Notwithstanding any other
provision herein or in any Budget, the following costs shall not be
reimbursable by Owner to Property Manager:

 

(i)                                     costs
relating to bookkeeping services required to be performed by Property Manager
hereunder unless such costs are approved by Owner in writing to Property
Manager;

 

(ii)                                  salaries
and payroll expenses of Property Manager’s executives, personnel, and employees
of Property Manager, except maintenance personnel billed on an hourly or other
periodic basis and subject to the limitations in the Budget;

 

(iii)                               Property
Manager’s off-site overhead and general administrative expenses, except long
distance telephone, fax, overnight delivery, courier, registered mail, copying,
entertainment (subject to Owner’s prior approval in each instance), uniforms,
and two-way radios, where such charges are directly related to the operation of
the Property;

 

(iv)                              premiums
for insurance required to be maintained by Property Manager or any
subcontractors hereunder; and

 

	
   

  	
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(v)                                 costs
of Property Manager’s principal and branch offices.

 

4.                                       Duties.

 

(a)                                  General
Management Duties. Subject to the availability of funds provided under the
Budget, Property Manager shall manage and operate the Property in a manner
consistent with the management and operation of comparable properties, shall
provide such services as are customarily provided by a manager of properties of
comparable class and standing, and shall consult with Owner and keep Owner
advised as to all material or extraordinary matters and decisions affecting the
Property. Specifically, Property Manager shall, at Owner’s expense, perform the
following services and duties for Owner in a faithful, diligent and efficient
manner:

 

(i)                                     Property
Manager shall timely prepare and deliver to Owner such accounting and
operations reports as and in the manner required pursuant to Owner’s standard
reporting requirements, as may be amended from time to time;

 

(ii)                                  Maintain
businesslike relations with tenants of the Property whose service requests
shall be received, considered and recorded in systematic fashion in order to
show the action taken with respect to each request. Complaints of a serious
nature shall, after thorough investigation, be reported to Owner with
appropriate recommendations for addressing such complaints;

 

(iii)                               Exercise
its best efforts to collect all rents and other sums and charges due from
tenants, subtenants, licensees and concessionaires of the Property;

 

(iv)                              Prepare
or cause to be prepared for execution and filing by Owner all forms, reports
and returns, if any, required by all federal, state, or local laws in
connection with unemployment insurance, workmen’s compensation insurance,
disability benefits, Social Security and other similar taxes now in effect or
hereafter imposed, and also any other requirements relating to the contracting
of third party vendors for the Property; however, Property Manager shall not be
obligated to prepare any of Owner’s local, state, or federal income tax
returns;

 

(v)                                 Pay
prior to delinquency all real estate taxes, sales tax, personal property taxes
and assessments levied against the Property, or any part thereof; and

 

(vi)                              Subject
to the limitations of the applicable approved Budget adopted pursuant to
subsection (b) hereof, perform such other acts as are reasonable, necessary and
proper in the discharge of its duties under this Agreement.

 

(b)                                 Budgets.

 

(i)                                     Budget
Approval Process. Property Manager shall submit by September 1st of
each year during the term hereof (or such other date as Owner may request) a
proposed detailed, written estimate or projection of all receipts and
expenditures for the operation of the Property during the next Fiscal Year,
including, without limitation, all estimated

 

	
   

  	
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rentals (including fixed,
percentage and escalation rents) and all estimated repairs, maintenance and
capital projects (“Budget”) for the ensuing Fiscal Year. Property
Manager shall submit the preliminary budget to Owner within 15 days after the
date hereof for the remainder of the Fiscal Year beginning on the date of this
Agreement. A “Fiscal Year” is a calendar year all or part of which falls
within the term of this Agreement. In the event Owner, in Owner’s sole
judgment, disapproves of any proposed Budget submitted by Property Manager,
Owner shall give Property Manager written notice thereof in which event
Property Manager shall make all revisions thereto which Owner shall direct. Property
Manager shall resubmit the revised proposed Budget to Owner for approval. Until
Owner has approved the revised approved Budget, Property Manager may continue
to operate pursuant to the last approved Budget except for increased expenses
relating to taxes, insurance and utilities which should be paid on a current
basis. In the absence of any written notice of approval within 60 days after
delivery of a proposed Budget to Owner, the proposed Budget shall be deemed to
have been approved by Owner.

 

(ii)                                  Payment
of Budgeted Expenses. Property Manager shall have the right to pay all
expenses according to the approved Budget, including the Management Fee
(hereinafter defined). Notwithstanding any other provision in this Agreement,
without the prior written consent of Owner, Property Manager shall not incur or
permit to be incurred expenses under this Agreement (excluding only utility
expenses, general real estate taxes, insurance premiums, financing costs and
emergency expenses) that exceed 10% of the applicable line items in the Budget
(e.g., cleaning expenses, HVAC expenses, maintenance expenses, etc.) but in no
event that exceed $500.00. Property Manager shall promptly notify Owner
whenever Property Manager determines that the Budget or any expense item in the
Budget is insufficient to cover the expenses of operating the Property or the
applicable expense item.

 

(c)                                  Property
Personnel. Property Manager shall employ, supervise, and discharge all
employees required in connection with the operation and management of the
Property. All such personnel shall, in every instance, be employees of Property
Manager or independent contractors. Property Manager shall provide and
maintain, so long as this Agreement is in force, worker’s compensation insurance
in full compliance with all applicable state and federal laws and regulations
covering all employees of Property Manager performing work in respect of the
Property operations. The granting of unbudgeted employee fringe benefits and
plans not required by law or union contract shall be subject to the reasonable
prior written approval of Owner. Property Manager agrees to comply with all
governmental anti-discrimination laws and shall not, unless acting at the
direction of Owner, do any act, nor permit any act to be done that would
constitute a violation of any or all of such laws. Property Manager shall
indemnify and hold Owner harmless from and against any and all claims,
penalties, liabilities and expenses of whatsoever kind and nature which may be
asserted by any governmental body having authority or by any person claiming to
be aggrieved by reason of any acts or failure to act by Property Manager in
accordance with or in violation of any said anti-discrimination laws, as long
as such act or failure to act is not caused or directed by Owner.

 

Employees of the Property Manager or independent contractors shall
include the following:

 

	
   

  	
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5

 

(i)                                     Property
Manager. A person who is primarily responsible for overseeing the
management of the Property hereunder and who is experienced in the
administration and operation of warehouse, and/or light industrial, and/or
service center facilities of the size, type, use, and quality of the Property;

 

(ii)                                  Others.
Such other personnel required to operate and maintain the Property, including,
but not limited to, an assistant property manager, maintenance manager, administrative
and accounting personnel, grounds keepers, and janitorial and custodial persons,
as Property Manager reasonably deems necessary or consistent with the level of
service provided by other similarly situated property.

 

(d)                                 Contracts
and Supplies. Property Manager shall, at Owner’s expense, at the lowest
cost as in its judgment is consistent with good quality, workmanship and
service standards, enter into contracts on behalf of Owner for the furnishing
to the Property of required utility services, heating and air-conditioning
services and other maintenance, pest control, and any other services and
concessions which are reasonably required in connection with the maintenance
and operation of the Property. Property Manager shall also place purchase
orders for services and Personal Property as are reasonably necessary to
properly maintain the Property. All such contracts and orders shall be subject
to the limitations set forth in the approved Budget. When taking bids or
issuing purchase orders, Property Manager shall use all reasonable efforts to
secure for and credit to Owner, any discounts, commissions or rebates
obtainable as a result of such purchases or services. Property Manager shall
use all reasonable efforts to make purchases and (where necessary or desirable)
let bids for necessary labor and materials at the lowest possible cost as in
its judgment is consistent with good quality, workmanship and service standards.
Property Manager shall not incur obligations to any person or entity in which
Property Manager or any of Property Manager’s employees has a financial or
other interest or with which Property Manager or any such employee(s) is
affiliated unless: i) the price or fee therefore is not higher than that which
would have been charged as a result of a bona fide arms-length negotiation for
goods or services of comparable quality; and ii) Property Manager delivers to
Owner prior written notice and Owner gives its prior written approval of any
such proposed transaction.

 

(e)                                  Alterations,
Repairs and Maintenance.

 

(i)                                     Budgeted
Repairs/Emergency Repairs. Property Manager shall, at Owner’s expense,
perform or cause to be performed all necessary or desirable repairs,
maintenance, cleaning, painting and decorating, alterations, replacements and
improvements in and to the Property as are customarily made by property
managers in the operation of properties of the kind, size, and quality of the
Property; provided, however, that no unbudgeted alterations, additions or
improvements involving a fundamental change in the character of the Property or
constituting a major new construction program shall be made without the prior
written approval of Owner unless specifically referenced in and performed
pursuant to any lease previously approved by Owner. In addition, no unbudgeted
expenditure in excess of $250 per item or a total of $1,000 per Fiscal Year shall
be made for such purposes in connection with any single Property without the
prior written approval of Owner. Emergency repairs involving manifest danger to
life or property, or immediately necessary for the preservation or the safety
of the

 

	
   

  	
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6

 

Property, or for the
safety of the tenants of the Property, or required to avoid the suspension of
any necessary service to the Property may be made, however, by the Property
Manager without prior approval and regardless of the cost limitations imposed
by this subsection (e). Property Manager shall as soon as practicable give
written notice to Owner of any such emergency repairs for which prior approval
is not required.

 

(ii)                                  Capital
Improvements. In accordance with the terms of approved Budgets and upon
written request and/or approval of Owner, Property Manager shall, from time to
time during the term hereof, at Owner’s expense, make or cause to be made all
required capital improvements, replacements, or repairs to the Property. All
major repairs and capital replacements shall be managed by a person who
specializes in construction projects for the Property Manager (the “Construction
Manager”). The Property Manager shall be paid a construction management fee of:
5% of the total budgeted construction cost (excluding the construction
management fee) up to $50,000; 4% of the total budgeted construction cost
exceeding $50,001 and up to $200,000; and 3% of the total budgeted construction
costs exceeding $200,001 and up to $350,000; 2.5% of the total budgeted
construction costs exceeding $350,001 and up. For example and not by way of
limitation, the construction management fee for a $50,000 construction job
would be $2,500. The construction management fee shall be paid upon the
completion of the construction and written acceptance of the work by the Owner.
The construction management fee shall be based on the actual cost of the
project, including any change orders approved by Owner. Notwithstanding
anything in this Section 4(e)(ii) to the contrary, it is understood and agreed
that, instead of Property Manager making or causing to be made all required
capital improvements, replacements or repairs to the Property (“Construction
Work”) as provided above, Owner may elect to engage a third party consultant to
perform construction management with respect to all or any portion of such
Construction Work, and, with respect to such Construction Work managed by such
a third party consultant, (i) Property Manager shall not be required to make or
cause to be made such Construction Work, (ii) the Property Manager shall
continue to be responsible for handling activities associated with the
Construction Work (other than the actual design and construction activities),
including, without limitation, processing of invoices and coordination with
tenants, and (iii) the construction management fee payable to Property Manager
on construction projects which are the responsibility of a third party
consultant shall be equal to 2% of the actual cost of the project (and the fee
schedule provided above shall not be applicable to such construction projects).

 

(iii)                               In
connection with all improvements, replacements, or repairs to the Property (the
“Work”), the Construction Manager shall do the following:

 

(A)                              prepare
a detailed list of the Work to be performed and review the preparation of all
plans for the construction of all improvements and repairs to the Property. Except
for any Work which is less than $2,500, the plans for the Work to be performed
shall be submitted to the Owner for its approval;

 

(B)                                except
for any Work which is less than $2,500, prepare all bid documents which shall
be distributed to at least three (3) contractors on the approved contractor
list;

 

	
   

  	
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(C)                                except
for any Work which is less than $2,500, receive all submitted bids and evaluate
such bids. In evaluating the submitted bids, Construction Manager shall
evaluate the price listed in the bid, the timeliness of the work to be
performed as stated in the bid, the reputation of the contractor submitting the
bid, and any other relevant factors that Construction Manager determines should
be taken into account when evaluating the submitted bids. Once Construction
Manager evaluates all the submitted bids, Construction Manager shall recommend
to Owner the bid, if any, it believes is the best and shall explain to Owner
why the recommended bid is the best. Once Owner determines which bid to accept,
Construction Manager shall contact the contractor with the approved bid to
award the contract;

 

(D)                               review,
inspect, and oversee the construction of all improvements, replacements, or
repairs to the Property to ensure that all said improvements, replacements, and
repairs comply with the construction contract requirements and all applicable
laws, including but not limited to local building codes and ordinances;

 

(E)                                 ensure
that all improvements, replacements, or repairs to the Property are completed;

 

(F)                                 except
for any Work which is less than $2,500 or for Work for which a single payment
will satisfy the obligation, prepare a draw package for the disbursement of
funds to the Contractor. The draw package or single payment invoices shall be
submitted to Owner for its approval;

 

(G)                                ensure
that all guaranties and warranties for the materials, labor, and for work in
connection with or relating to the Work shall be in the name of the Owner or
shall be assigned to Owner upon the completion of the Work; and

 

(H)                               after
receiving adequate and complete lien waivers from all workers and suppliers and
other applicable parties in connection with the Work, after taking any and all
steps necessary to release and to otherwise prevent perfection or enforcement
of any liens filed or recorded against the Property in connection with the
construction of any and all improvements or replacements or repairs to the
Property and after receiving written approval from Owner, disburse all funds to
the proper and correct parties.

 

The Construction Manager shall provide
written reports to Owner, no less frequently than once a month, summarizing the
repairs, improvements, and replacements being constructed on the Property, as
well as such other reports as Owner may reasonably request. These reports
shall, among other things, summarize any material problems or issues that may
arise in connection with said construction.

 

(iv)                              Defects
and Warranties. Property Manager shall give Owner written notice of any
material or latent defect in the Property and all parts thereof known to
Property

 

	
   

  	
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Manager promptly after
any of the foregoing comes to Property Manager’s attention including, without
limitation, material defects in the roof, foundation and walls of the Property
and in the sewer, water, electrical, structural, plumbing, heating, ventilation
and air conditioning systems. Property Manager shall make periodic visual
inspections of the Property consistent with its employees’ and agents’
expertise as referenced in Section 4(c)(i) hereinabove. Property Manager shall
have no obligation to discover any such condition or make any other
inspections, but Property Manager shall be required to ascertain the existence
of any contractor/subcontractor warranty or guaranty and to submit a request to
the appropriate contractor/subcontractor to repair the defect as necessary.

 

(f)                                    Licenses
and Permits. Property Manager shall, at Owner’s expense, attempt to obtain
and maintain in the name of Owner all licenses and permits required of Owner or
Property Manager in connection with the management and operation of the
Property. Owner agrees to execute and deliver any and all applications and
other documents and to otherwise cooperate with Property Manager in applying
for, obtaining and maintaining such licenses and permits.

 

(g)                                 Compliance
with laws. To the extent permitted by the approved Budget, Property Manager
shall use best efforts to comply with all applicable laws, regulations and
requirements of any federal, state or municipal government having jurisdiction
with respect to the use or manner of use of the Property or the maintenance or
operation thereof.

 

(h)                                 Legal
Proceedings. Property Manager cannot and may not terminate any lease, lock out
a tenant, institute suit for rent or for use and occupancy, or proceedings for
recovery of possession, without the prior written approval of Owner. In
connection with such suits or proceedings only legal counsel designated by
Owner shall be retained, and all such suits or proceedings shall be brought in
the name of Owner and shall be handled in such manner as Owner directs.

 

(i)                                     Inventory.
Property Manager shall maintain a current inventory of all equipment supplies,
furnishings, furniture and all other items of personal property now or
hereafter owned by Owner and located upon or used, or useful for, or necessary
or adapted for the operation of the Property.

 

(j)                                     Signs.
Property Manager may place one or more signs on or about the Property stating,
among other things, that Property Manager is the management and leasing agent
for the Property. All such signs and locations thereof shall be subject to
Owner’s prior written approval.

 

(k)                                  Third
Party Vendors. All third party vendors with whom Property Manager contracts
on behalf of Owner shall be required to submit certificates of insurance
evidencing that such vendor carries at least $1,000,000 in comprehensive
general liability insurance and such workers compensation insurance as may be
required by statute in the state in which the Property is located. If required
by other provisions of this Agreement, Owner shall be added as an additional
insured on such policies of insurance.

 

	
   

  	
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(l)                                     Leases.
In accordance with the terms and provisions of this Agreement, Property
Management shall ensure that all tenants comply with the terms and provisions
of their leases and shall take customary actions to enforce such leases.

 

(m)                               Additional
Services. If Property Manager shall perform such additional services as
Owner may reasonably request in writing, which are not specifically provided
for in this Section 4 above, Property Manager will be compensated for such
services on an hourly basis or on a negotiated fee basis.

 

W.C. PINKARD & CO., INC. D/B/A COLLIERS PINKARD

 

BANK ACCOUNTS

 

The various bank accounts established under this Agreement shall at all
times be established in the name of Manager, in trust for Owner, but under
Manager’s control. Manager’s designees shall be the only parties authorized to
draw upon such accounts.

 

Operating
Account

 

Manager shall
establish a designated “Operating Account,” which shall be used solely for the
deposit of all receipts from operation of the Property which are collected by
Manager under this Agreement. The Operating Account shall be opened by Manager
at a federally insured financial institution having offices in North Carolina,
as selected by Manager and approved by Owner. The account number shall be identified
to Owner. All funds deposited to and held in the Operating Account shall be and
remain the exclusive property of Owner. Manager shall disburse funds from the
Operating Account solely for the payment of expenses related to the operation
of the Property and the performance of Manager’s duties under this Agreement.

 

Initial
Deposit And Contingency Reserve

 

Owner agrees
to maintain a mutually acceptable “Contingency Reserve” at all times in the
Operating Account to enable Manager to pay the obligations of Owner under this
Agreement as they become due. Owner and Manager shall review and adjust the
amount of the contingency reserve as circumstances warrant.

 

Security
Deposit Account

 

Manager shall,
if required by law, and except to the extent otherwise required by the Lease,
maintain a separate non-interest-bearing “Security Deposit Account” for tenant
security deposits and advance rentals received from the operation of the
Property. The Security Deposit Account shall be opened by Manager at a
federally insured financial institution having offices in North Carolina, as
selected by Manager and approved by Owner. The account number shall be
identified to Owner. The Security Deposit Account and all deposit balances
shall be maintained in accordance with applicable state or local laws, if any.

 

Manager shall
collect all rents, charges and other amounts receivable on Owner’s account in
connection with the management and operation of the Property. All tenants’
security deposits shall be deposited into the Security Deposit Account; all
advance rentals and other receipts shall be deposited in the Operating Account.

 

6.                                       Accounting.

 

(a)                                  Books
and Records. In accordance with the guidelines and operating procedures
established by Owner, Property Manager shall maintain, at the central office of
Property Manager, a comprehensive system of office records, books, computer
files and data and accounts pertaining to the Property (using such property
management accounting software that Owner may choose), which system currently
is MRI. Owner also has a website, xdrive.com, which Property Manager shall also
be required to maintain and/or access for additional required

 

	
   

  	
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forms and reports. Such
systems (MRI & xdrive.com), records, books, computer files and data and
accounts shall be available for examination, copying and audit by Owner and its
agents, accountants and attorneys during regular business hours. Property
Manager, during the term, shall preserve all records, books, computer files and
data and accounts for a period of three years and at the end of such period
shall deliver or make available to Owner such records, books, computer files
and data and accounts. All such records, books and computer files and data
shall, at all times, be the property of Owner.

 

(b)                                 Periodic
Statements; Audits.

 

(i)                                     Periodic
Statements. Property Manager shall timely prepare and deliver to Owner such
accounting and operations reports as and in the manner required pursuant to
Owner’s standard reporting requirements, as may be amended from time to time.

 

(ii)                                  Data
Processes. Property Manager shall timely meet all designated deadlines for
inputting and maintaining data on Owner’s MRI system (or other system hereafter
designated by Owner) so that Owner may download such data from Property Manager’s
computers to Owner’s computers on such designated deadlines.

 

(iii)                               Audit.
In the event that Owner requires an audit, the audit shall be at Owner’s
expense and the Property Manager shall cooperate with the auditors.

 

(iv)                              Other
Statements. Owner may request and Property Manager shall provide when
available such monthly, quarterly and/or annual leasing and management reports
that relate to the operations of the Property as Property Manager customarily
provides the owners of other properties it manages.

 

(c)                                  Return
of Computer Hardware and Software. Immediately following the termination of
this Agreement by either Owner or Property Manager, Property Manager shall
return and/or deliver to Owner, in good condition and working order, all
hardware, software, documentation, backup tapes, signature cartridges and all
other computer hardware and software purchased or otherwise provided by Owner
to Property Manager for Property Manager’s use during the term of this
Agreement.

 

7.                                       Insurance.

 

(a)                                  Insurance
by Owner. Owner, at its expense, will obtain and keep in force adequate
insurance against physical damage (e.g., fire and extended coverage
endorsement, boiler, and machinery, etc.) and against liability for loss,
damage, or injury to property or persons which might arise out of the
occupancy, management, operating, or maintenance of the Property covered by
this Agreement. Property Manager will be covered as an insured in its capacity
as a Real Estate Manager on all commercial general liability insurance obtained
by Owner. Owner shall save Property Manager harmless from any liability on
account of loss, damage, or injury, to the extent actually insured against by
Owner provided:

 

(i)                                     Property
Manager notifies Owner within twenty-four hours after Property Manager receives
notice of any such loss, damage or injury;

 

	
   

  	
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(ii)                                  Property
Manager takes no action (such as admission of liability) which bars Owner from
obtaining any protection afforded by any policy Owner may hold; and

 

(iii)                               Property
Manager agrees that Owner shall have the exclusive right, at its option, to
conduct the defense to any claim, demand or suit within limits prescribed by
the policy or policies of insurance.

 

The Property Manager shall furnish whatever information is requested by
Owner for the purpose of establishing the placement of insurance coverages and
shall aid and cooperate in every reasonable way with respect to such insurance
and any loss thereunder. Owner shall include in its hazard policy covering the
Property, the personal property, fixtures and equipment located thereon (owned
by either Property Manager or Owner), appropriate clauses pursuant to which the
insurance carriers shall waive the rights of subrogation with respect to losses
payable under such policies.

 

(b)                                 Indemnity.
Owner agrees to indemnify, defend and hold Property Manager harmless from and
against any and all loss, cost, damage, liability or expense (including,
without limitation, attorneys’ fees, accountants’ fees, consultants’ fees,
court costs and interest) resulting from bodily injury or tangible property
damage and arising in connection with the Property to the extent the same were
caused by the gross negligence or willful misconduct of Owner, or its officers
or employees.

 

(c)                                  Property
Manager’s Insurance. Property Manager shall maintain, at its expense,
insurance coverages in the following amounts:

 

(i)                                     Worker’s Compensation – Coverage A: statutory
amount

 

Coverage
B: Employer’s Liability insurance:

 

$500,000
Each Accident

 

$500,000
Disease, Policy Limit

 

$500,000
Disease, Each Employee

 

Worker’s
Compensation policy shall include a waiver of all rights of subrogation against
Owner for injuries sustained by Property Manager’s employees while working at
any Property.

 

(ii)                                  Commercial General Liability, on an
occurrence basis, including Bodily Injury and Property Damage Liability,
Personal and Advertising Injury Liability for the following limits:

 

	
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  2,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Products -
  Completed Operations Aggregate

  	
   

  	
  $

  	
  2,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Each
  Occurrence

  	
   

  	
  $

  	
  1,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Personal and
  Advertising Injury Liability

  	
   

  	
  $

  	
  1,000,000

  	
   

  

 

	
   

  	
  Initials: PM 

  	
  

  	
  Owner 

  	
  

  

 

12

 

Property Manager’s
Commercial General Liability policy shall (i) be secondary, excess and
non-contributory to Owner’s commercial general liability insurance provided in
Section 7(a) of this Agreement, and (ii) an endorsement deleting the
contractual liability exclusion contained in the Personal and Advertising
Injury Liability coverage

 

(iii)                               Owned, Hired and Non-Owned Business
Automobile liability insurance in an amount no less than $1,000,000 per
accident Combined Single Limit for bodily injury and property damage

 

(iv)                              Property Manager’s Errors & Omissions
Insurance in an amount not less than $1,000,000 per loss, aggregate.

 

(v)                                 Employee Theft Insurance in an amount not
less than $1,000,000. Employee Theft Insurance policy shall be endorsed to name
Owner as a loss payee and to provide coverage for theft of Owner’s money,
securities and other property by employees of Property Manager.

 

(vi)                              Property Insurance coverage for personal
property of Property Manager.

 

All coverage shall be provided by insurance companies with a current
Best’s Rating of A VIII or higher. At the commencement of the Agreement,
Property Manager shall furnish Owner with Certificates of Insurance. All
insurance policies shall provide for 30 days’ written notice to Owner prior to
the cancellation or any material change to any provisions therein. Certificates
of Insurance shall be modified so the words “endeavor to”, “but failure to mail
such notice shall impose no obligation or liability of any kind upon the
company, its agents or representatives”, and all provisions of similar effect
shall be deleted from the certificate form’s cancellation provision. At least
ten (10) days prior to the expiration of any such policy, Property Manager will
provide to Owner evidence of the renewal or replacement of the aforesaid
policies.

 

(d)                                 Indemnification of Owner. Property Manager agrees to defend and hold
and save Owner free and harmless from and against all expenses, claims,
liabilities, losses, judgments or damages, including reasonable attorneys’ fees
actually incurred (except to the extent covered by insurance carried by Owner),
which Owner may suffer or incur as a result of any gross negligence or willful
misconduct of Property Manager or its agents, employees, independent
contractors or others under the direction or control of Property Manager, any
claim by or relating to any employee of Property Manager against Owner that is
predicated on the claim that such employee is the employee of Owner and not of
Property Manager or any act outside the scope of Property Manager’s authority
hereunder, and agrees to retain legal counsel as selected by Owner, or to
reimburse Owner for all reasonable legal costs that it actually incurs in
retaining its own counsel, at Owner’s option and at Property Manager’s sole
expense, and to defend promptly and diligently any claim, action or proceeding
brought against Owner or Property Manager, jointly or severally, arising out of
or in connection with any of the foregoing.

 

	
   

  	
  Initials: PM 

  	
  

  	
  Owner 

  	
  

  

 

13

 

It is expressly understood and agreed that the provisions of Section
7(b) hereinabove and the provisions of this Section 7(d) shall survive the
termination of this Agreement to the extent of any cause of action arising from
events occurring prior to such termination.

 

(e)                                  Subcontractor’s Insurance. Property Manager shall require that all
subcontractors brought onto the Property have insurance coverage, at the
subcontractor’s expense, in the following minimum amounts (which amounts may be
increased at Owner’s written request, depending on the work to be performed):

 

(i)                                     Workman’s Compensation – statutory amount;

 

(ii)                                  Employer’s Liability -
$500,000/$500,000/$500,000 minimum;

 

(iii)                               Broad Form Commercial General Liability
(naming Owner and Property Manager as additional insureds) - $1,000,000 per
occurrence Combined Single Limit; $2,000,000 aggregate (i.e., such insurance
shall include contractual liability, personal injury protection and completed operations
coverage and hold harmless provision in favor or Owner and Property Manager);

 

(iv)                              Auto Liability - $1,000,000 minimum; and

 

(v)                                 Property Insurance coverage for tools
and equipment brought onto and/or used on the Property by the subcontractor –
an amount equal to the replacement costs of all such tools and equipment.

 

All such policies of insurance shall name Owner, Property Manager and
all other parties and/or entities required by Owner as additional insureds
thereunder, as their respective interests may appear.

 

Property Manager must obtain Owner’s prior permission to waive any of
the above requirements. Property Manager shall obtain and keep on file a
certificate of insurance that shows the contractor is so insured.

 

8.                                       Subordination
to Mortgages.

 

(a)                                  Subordination.
This Agreement and Property Manager’s interest and rights hereunder, are
subject and subordinate to the lien of any first mortgage, whether now existing
or hereafter created on or against the Property, and all amendments, restatements,
renewals, modifications, consolidations, refinancings, assignments and
extensions thereof (“Mortgage”), without the necessity of
any further instrument or act on the part of the Property Manager. Property
Manager agrees, at the request of the holder of any such Mortgage (the “Mortgagee”),
to attorn to the Mortgagee and/or to execute such documentation as the
Mortgagee may reasonably require to evidence that Property Manager’s interest
and rights hereunder are and shall be subject and subordinate at all times to
the lien of the Mortgage. The term “Mortgage” as used herein shall be deemed to
include deeds of trust, security agreements, assignments and any other
encumbrances, and any reference to the “Mortgagee” of a Mortgage

 

	
   

  	
  Initials: PM 

  	
  

  	
  Owner 

  	
  

  

 

14

 

shall be deemed to
include the beneficiary under a deed of trust. Notwithstanding the foregoing,
nothing herein shall obligate the Property Manager to continue its performance
under this Agreement unless it continues to be paid in accordance with the
terms of this Agreement.

 

(b)                                 Rights
after Events of Default. In the event of any default under any Mortgage,
the Property Manager shall continue to perform its obligation under this
Agreement until the termination of this Agreement by the Mortgagee, which may
occur in the Mortgagee’s sole discretion, as provided for in Section 2(f) of
this Agreement.

 

9.                                       Miscellaneous
Provisions.

 

(a)                                  Notices.
All notices, waivers, demands, requests, or other communications, except for
those approvals required under this Agreement which shall be sent by facsimile
or regular mail to the asset manager for that individual Property, required or
permitted hereunder shall, unless otherwise expressly provided, be in writing
and be deemed to have been properly given, served and received (i) if delivered
by messenger, when delivered, (ii) if mailed, upon deposit in the United States
mail, certified or registered, postage prepaid, return receipt requested, (iii)
if telexed, telegraphed, or telecopied, if such dispatch is followed by
delivery pursuant to (iv) below the next business day, or (v) if delivered by
reputable overnight express courier, freight prepaid, the next business day
after delivery to such courier; in every case addressed to the party to be
notified as follows:

 

	
  To
  Property Manager:

  	
  WC
  Pinkard & Co., Inc dba Colliers Pinkard

  
	
   

  	
  330
  South Tryon Street, Suite 301

  	
   

  
	
   

  	
  Charlotte,
  NC 28202

  	
   

  
	
   

  	
  Attn:
  Gail Porfilio

  	
   

  
	
   

  	
  Telephone:
  

  	
  (704)
  375-7771

  
	
   

  	
  Telefax:

  	
  (704)
  347-0793

  
	
   

  	
   

  
	
   

  	
   

  
	
  To Owner:

  	
  DCT MARINE DRIVE SC LLC

  
	
   

  	
  518 17th St, Ste 1700

  	
   

  
	
   

  	
  Denver,
  CO 80202

  	
   

  
	
   

  	
  Attn:
  Bonnie Micus

  	
   

  
	
   

  	
  Telephone:
  

  	
  303-228-2200

  
	
   

  	
  Telefax:
  

  	
  303-228-2201

  
					

 

or to such other address(es) or addressee(s) as any
party entitled to receive notice hereunder shall designate to the others in the
manner provided herein for the service of notices. Rejection or refusal to
accept or inability to deliver because of changed address or because no notice
of changed address was given, shall be deemed receipt.

 

(b)                                 Severability.
If any term, covenant or condition of this Agreement or the application thereof
to any person or circumstance shall, to any extent, be held to be invalid or
unenforceable, the remainder of this Agreement, or the application of such
term, covenant or condition to persons or circumstances other than those as to
which it is held invalid or

 

	
   

  	
  Initials: PM 

  	
  

  	
  Owner 

  	
  

  

 

15

 

unenforceable, shall not
be affected thereby, and each term, covenant or condition of this Agreement
shall be valid and shall be enforced to the fullest extent permitted by law.

 

(c)                                  No
Joint Venture or Partnership. Owner and Property Manager hereby renounce
the existence of any joint venture or partnership between them and agree that
nothing contained herein or in any document executed in connection herewith
shall be construed as making Property Manager and Owner joint venturers or
partners.

 

(d)                                 Modification,
Termination. This Agreement may be amended or modified only by a written
instrument executed by Property Manager and Owner.

 

(e)                                  Total
Agreement. This Agreement constitutes the entire agreement between the
parties hereto with respect to the subject matter hereof.

 

(f)                                    Article
and Section Headings. Article and Section headings contained in this Agreement
are for reference only and shall not be deemed to have any substantive effect
or to limit or define the provisions contained herein.

 

(g)                                 Successors
and Assigns. This Agreement shall be binding on the parties hereto, and
their successors and permitted assigns. Property Manager may not assign or
otherwise transfer its interest hereunder without the prior written consent of
Owner, which consent may be withheld arbitrarily in Owner’s sole discretion. This
Agreement is freely assignable by Owner.

 

(h)                                 Governing
Law. This Agreement shall be construed in accordance with the internal laws
of the state in which the Property is located.

 

(i)                                     Sarbanes
Oxley Act. Property Manager, at it sole expense, shall comply with all
requirements set forth in the Sarbanes Oxley Act of 2002 with respect to the
Project. Specifically, Property Manager will be required to produce
documentation of all accounting policies and procedures which identify all key
controls and describes in detail the processes which ultimately affect the
Project financial statements. In addition, Property Manager may be required to
perform periodic testing of such identified controls and remediate any control
weaknesses identified through such test work. All policies and procedures,
documentation and test work will be performed to the specification of the Owner
including but not limited to, implementation of appropriate controls, scope of
test work including such as sample size, measures to be taken from remediation,
etc.

 

(j)                                     Counterparts.
This Agreement may be executed in several counterparts, each of which shall be
deemed to be an original, but all of which shall constitute one and the same
instrument.

 

SIGNATURES BEGIN ON NEXT PAGE

 

	
   

  	
  Initials: PM 

  	
  

  	
  Owner 

  	
  

  

 

16

 

SIGNATURE PAGE TO PROPERTY MANAGEMENT
AGREEMENT 

DATED DECEMBER 8, 2006 BETWEEN DCT MARINE DRIVE SC LLC

 

AND WC PINKARD AND CO. DBA COLLIERS PINKARD

 

IN WITNESS WHEREOF, this Agreement has been executed as of the date
first above written.

 

 

OWNER:

 

DCT MARINE DRIVE SC LLC, a Delaware limited
liability company

 

By: TRT-DCT Industrial JV I General
Partnership, a Delaware general partnership, its sole member

 

By: DCT Industrial Fund II LLC, a Delaware
limited liability company, a general partner

 

By: DCT Industrial Operating Partnership LP,
a Delaware limited partnership, f/k/a Dividend Capital Operating Partnership
LP, its sole member

 

By: DCT Industrial Trust Inc., a Maryland
corporation, f/k/a Dividend Capital Trust Inc., its general partner

 

	
   

  	
  By:

  	
  /s/ Bonnie Micus  

  	
   

  
	
   

  	
   

  	
  Bonnie
  Micus

  
	
   

  	
   

  	
  Senior
  Vice President/Director of Property

  
	
   

  	
   

  	
  Management

  
	
   

  	
   

  	
   

  
	
   

  	
  Date:

  	
  01/03/07

  	
   

  

 

	
   

  	
  PROPERTY MANAGER:

  
	
   

  	
   

  
	
   

  	
  WC PINKARD & CO., Inc DBA COLLIERS PINKARD,

  
	
   

  	
  a Maryland corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Gail Porfilio

  	
   

  
	
   

  	
  Name:

  	
  Gail Porfilio

  
	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
  Date:

  	
  12-21-06

  	
   

  

 

	
   

  	
  Initials: PM 

  	
  

  	
  Owner 

  	
  

  

 

17

 

EXHIBIT A

 

to Property Management Agreement dated
December 8, 2006

by and between DCT Marine Drive SC LLC

and WC Pinkard & Co., Inc dba Colliers
Pinkard

 

LIST OF PROPERTIES COVERED BY THIS AGREEMENT

 

Address:

 

860 Marine Drive, Rock Hill, SC

 

	
   

  	
  Initials: PM 

  	
  

  	
  Owner 

  	
  

  

 

18

 

EXHIBIT B

to Property Management Agreement dated December
8, 2006

by and between DCT Marine Drive SC LLC and

WC Pinkard & Co., Inc dba Colliers
Pinkard

 

SCHEDULE OF PROPERTY MANAGEMENT FEES

 

	
  Property Address

  	
   

  	
  The Greater of

  Monthly Minimum or Percent of Gross Receipts

  
	
  860 Marine
  Drive, Rock Hill, SC

  	
   

  	
  $2,739 or 3%

  

 

	
   

  	
  Initials: PM 

  	
  

  	
  Owner 

  	
  

  

 

19

 

EXHIBIT C

 

to Property Management Agreement dated
December 8, 2006

by and between DCT Marine Drive SC LLC and

WC Pinkard & Co., Inc dba Colliers
Pinkard

 

DESIGNATED SIGNATORIES

 

DCT MARINE DRIVE SC LLC

 

 

 

 

 

 

 

 

 

 

 

WC PINKARD & CO., Inc DBA COLLIERS PINKARD

 

Gail Porfilio

 

Clark Holmes

	
   

  	
  Initials: PM 

  	
  

  	
  Owner 

  	
  

  

 

20

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