Document:

Purchase and Sale Agreement for Tanglewood Commons

 Exhibit 10.1 
  
 PURCHASE AND SALE AGREEMENT 
  

AMONG 
  
 FUND VI, FUND VII AND FUND VIII ASSOCIATES, a Georgia general partnership 
  
 AND 
  
 TANGLEWOOD INVESTORS, LLC, a North Carolina limited liability company 
  
 TANGLEWOOD COMMONS SHOPPING CENTER 
  
 March 24, 2005 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page

	 ARTICLE 1
	  	    DEFINITIONS	  	1
			
	 ARTICLE 2
	  	    PURCHASE AND SALE	  	6
			
	 2.1
	  	Agreement to Sell and Purchase	  	6
			
	 2.2
	  	Permitted Exceptions	  	6
			
	 2.3
	  	Earnest Money	  	6
			
	 2.4
	  	Purchase Price	  	6
			
	 2.5
	  	Independent Contract Consideration	  	7
			
	 2.6
	  	Closing	  	7
			
	 ARTICLE 3
	  	    PURCHASER’S INSPECTION AND REVIEW RIGHTS	  	7
			
	 3.1
	  	Due Diligence Inspections	  	7
			
	 3.2
	  	Seller’s Deliveries to Purchaser; Purchaser’s Access to Seller’s Property Records	  	8
			
	 3.3
	  	Condition of the Property	  	10
			
	 3.4
	  	Title and Survey	  	10
			
	 3.5
	  	Operating Agreements	  	11
			
	 3.6
	  	Termination of Agreement	  	12
			
	 3.7
	  	Confidentiality	  	12
			
	 ARTICLE 4
	  	    REPRESENTATIONS, WARRANTIES AND OTHER AGREEMENTS	  	13
			
	 4.1
	  	Representations and Warranties of Seller	  	13
			
	 4.2
	  	Knowledge Defined	  	16
			
	 4.3
	  	Covenants and Agreements of Seller	  	16
			
	 4.4
	  	Representations and Warranties of Purchaser	  	17
			
	 ARTICLE 5
	  	    CLOSING DELIVERIES, CLOSING COSTS AND PRORATIONS	  	18
			
	 5.1
	  	Seller’s Closing Deliveries	  	18
			
	 5.2
	  	Purchaser’s Closing Deliveries	  	21
			
	 5.3
	  	Closing Costs	  	21
			
	 5.4
	  	Prorations and Credits	  	22
			
	 ARTICLE 6
	  	    CONDITIONS TO CLOSING	  	24
			
	 6.1
	  	Conditions Precedent to Purchaser’s Obligations	  	24
			
	 6.2
	  	Conditions Precedent to Seller’s Obligations	  	25

  

 -i- 

 TABLE OF CONTENTS 
 (continued) 
  

					
	 	  	 	  	Page

			
	 ARTICLE 7
	  	    CASUALTY AND CONDEMNATION	  	26
	 7.1
	  	Casualty	  	26
			
	 7.2
	  	Condemnation	  	27
			
	 ARTICLE 8
	  	    DEFAULT AND REMEDIES	  	27
			
	 8.1
	  	Purchaser’s Default	  	27
			
	 8.2
	  	Seller’s Default	  	28
			
	 ARTICLE 9
	  	    ASSIGNMENT	  	28
			
	 ARTICLE 10
	  	    BROKERAGE COMMISSIONS	  	28
			
	 ARTICLE 11
	  	    MISCELLANEOUS	  	29
			
	 11.1
	  	Notices	  	29
			
	 11.2
	  	Possession	  	30
			
	 11.3
	  	Time Periods	  	30
			
	 11.4
	  	Publicity	  	30
			
	 11.5
	  	Discharge of Obligations	  	30
			
	 11.6
	  	Severability	  	31
			
	 11.7
	  	Construction	  	31
			
	 11.8
	  	Sale Notification Letters	  	31
			
	 11.9
	  	Access to Records Following Closing	  	31
			
	 11.10
	  	Survival	  	31
			
	 11.11
	  	General Provisions	  	31
			
	 11.12
	  	Attorney’s Fees	  	32
			
	 11.13
	  	Counterparts	  	32

  

 -ii- 

 SCHEDULE OF EXHIBITS 
  

					
	 	  	 	  	Reference

			
	 Exhibit “A”
	  	Description of Property	  	p. 3
			
	 Exhibit “B”
	  	List of Personal Property	  	p. 4
			
	 Exhibit “C”
	  	List of Existing Commission Agreements and Management Agreement	  	pp. 2, 4 & § 4.1(f)
			
	 Exhibit “D”
	  	Form of Escrow Agreement	  	p. 2
			
	 Exhibit “E”
	  	List of Existing Litigation	  	p. 13
			
	 Exhibit “F”
	  	Rent Roll	  	p. 5
			
	 Exhibit “G”
	  	Exception Schedule	  	§ 4.1
			
	 Exhibit “H”
	  	List of Operating Agreements	  	p. 4
			
	 Exhibit “I”
	  	Form of Tenant Estoppel Certificate	  	p. 5 & § 6.1(d)
			
	 Exhibit “J”
	  	Property Tax Appeals	  	§ 4.1(g)
			
	 Exhibit “K”
	  	Unpaid Tenant Inducement Costs and Leasing Commissions re current tenants for which Seller is responsible	  	§ 5.4(e)
			
	 Exhibit “L”
	  	Form of Escrow Agreement for Tenant Relocation and Expansion Funds	  	§ 4.1(f)

  
  

 -iii- 

 SCHEDULE OF CLOSING DOCUMENTS 
  

			
	 Schedule 1
	  	Form of Special Warranty Deed
		
	 Schedule 2
	  	Form of Assignment and Assumption of Leases and Security Deposits and Leasing Commission Obligations arising after Closing
		
	 Schedule 3
	  	Form of Bill of Sale to Personal Property
		
	 Schedule 4
	  	Form of Assignment and Assumption of Operating Agreements
		
	 Schedule 5
	  	Form of General Assignment of Seller’s Interest in Intangible Property
		
	 Schedule 6
	  	Form of Seller’s Affidavit (for Purchaser’s Title Insurance Purposes)
		
	 Schedule 7
	  	Form of Seller’s Certificate (as to Seller’s Representations and Warranties)
		
	 Schedule 8
	  	Form of Seller’s FIRPTA Affidavit
		
	 Schedule 9
	  	Intentionally Omitted
		
	 Schedule 10
	  	Form of Purchaser’s Certificate (as to Purchaser’s Representations and Warranties)
		
	 Schedule 11
	  	Form of Seller’s Estoppel (as to Leases)

  

 -iv- 

 PURCHASE AND SALE AGREEMENT 
  
 TANGLEWOOD COMMONS SHOPPING CENTER 
  
 THIS PURCHASE AND SALE AGREEMENT (the “Agreement”), made and entered into this
     day of March, 2005, by and between FUND VI, FUND VII and FUND VIII ASSOCIATES, a Georgia general partnership (“Seller”) and TANGLEWOOD INVESTORS, LLC, a North Carolina limited liability
company (“Purchaser”). 
  
 WITNESETH: 
  
 WHEREAS, Seller desires to sell certain improved real property commonly known as “Tanglewood Commons Shopping Center” located at 4120-4156 Highway 158, Clemmons, Forsyth County, North Carolina, together with
certain related personal and intangible property, and Purchaser desires to purchase such real, personal and intangible property; and 
  
 WHEREAS, the parties hereto desire to provide for said sale and purchase on the terms and conditions set forth in this Agreement; 
  
 NOW, THEREFORE, for and in consideration of the premises, the mutual
covenants and agreements hereinafter set forth, and for other good and valuable consideration, the receipt, adequacy, and sufficiency of which are hereby acknowledged by the parties hereto, the parties hereto hereby covenant and agree as follows:

  
 ARTICLE 1 
 DEFINITIONS 
  
 For purposes of this Agreement, each of the following capitalized terms shall have the meaning ascribed to such terms as set forth below: 
  
 “Additional Earnest Money” shall mean the sum of TWO
HUNDRED THIRTY THOUSAND and NO/100 DOLLARS ($230,000 U.S.). 
  
 “Ancillary Closing Documents” shall mean, collectively, the Assignment and Assumption of Leases, the Assignment and Assumption of Operating Agreements, the General Assignment, and the Seller’s Certificate. 

 
 “Assignment and Assumption of Leases” shall mean the form
of assignment and assumption of Leases and Security Deposits and obligations under the Commission Agreements to be executed and delivered by Seller and Purchaser at the Closing in the form attached hereto as SCHEDULE 2.

  
 “Assignment and Assumption of Operating
Agreements” shall mean the form of assignment and assumption of the Operating Contracts to be executed and delivered by Seller and Purchaser at the Closing in the form attached hereto as
SCHEDULE 4. 
  
 “Bill of Sale” shall mean the form of bill of sale to the Personal Property to be executed and delivered by Seller to Purchaser at the Closing in the form attached hereto as SCHEDULE 3. 

 “Broker” shall have the meaning ascribed thereto in Article 10 hereof. 
  
 “Business Day” shall mean any day other than a Saturday,
Sunday or other day on which banking institutions in the State of Georgia are authorized by law or executive action to close. 
  
 “Closing” shall mean the consummation of the purchase and sale of the Property pursuant to the terms of this Agreement. 
  
 “Closing Date” shall have the meaning ascribed thereto in
Section 2.6 hereof. 
  
 “Commission Agreements”
shall have the meaning ascribed thereto in Section 4.1(f) hereof, and such agreements are more particularly described on EXHIBIT “C” attached hereto and made a part hereof. 
  
 “Due Diligence Material” shall have the meaning ascribed
thereto in Section 3.7 hereof. 
  
 “Earnest
Money” shall mean the Initial Earnest Money, together with any Additional Earnest Money actually paid by Purchaser to Escrow Agent hereunder and together with all interest which accrues thereon as provided in Section 2.3(c) hereof and in
the Escrow Agreement. 
  
 “Effective Date” shall
mean the last date upon which the following shall have occurred: (a) Purchaser and Seller shall have delivered at least two (2) fully executed counterparts of this Agreement to the other, (b) Purchaser, Seller and Escrow Agent shall have executed
and delivered at least one (1) fully executed counterpart of the Escrow Agreement to each other party, and (c) Purchaser shall have delivered the Earnest Money (by federal wire transfer or delivery of Purchaser’s check made payable to Escrow
Agent) to Escrow Agent. 
  
 “Environmental Law”
shall mean any law, ordinance, rule, regulation, order, judgment, injunction or decree relating to pollution or substances or materials which are considered to be hazardous or toxic, including, without limitation, the Resource Conservation and
Recovery Act, the Comprehensive Environmental Response, Compensation and Liability Act, the Hazardous Materials Transportation Act, the Clean Water Act, the Toxic Substances Control Act, the Emergency Planning and Community Right to Know Act, any
state and local environmental law including, without limitation, all amendments and supplements to any of the foregoing and all regulations and publications promulgated or issued pursuant thereto. 
  
 “Escrow Agent” shall mean the Title Company. 
  
 “Escrow Agreement” shall mean that certain Escrow Agreement
in the form attached hereto as EXHIBIT “D” entered into contemporaneously with the execution and delivery of this Agreement by Seller, Purchaser and Escrow Agent with respect to the Earnest Money. 
  
 “FIRPTA Affidavit” shall mean the form of FIRPTA Affidavit
to be executed and delivered by Seller to Purchaser at Closing in the form attached hereto as SCHEDULE 8. 
  
 “First Title Notice” shall have the meaning ascribed thereto in Section 3.4 hereof. 
  

 2 

 “General Assignment” shall have the meaning ascribed thereto in Section 5.1(g) hereof.

  
 “Hazardous Substances” shall mean any and all
pollutants, contaminants, toxic or hazardous wastes or any other substances that might pose a hazard to health or safety, the removal of which may be required or the generation, manufacture, refining, production, processing, treatment, storage,
handling, transportation, transfer, use, disposal, release, discharge, spillage, seepage or filtration of which is or shall be restricted, prohibited or penalized under any Environmental Law (including, without limitation, lead paint, asbestos, urea
formaldehyde foam insulation, petroleum and polychlorinated biphenyls). 
  
 “Improvements” shall mean all buildings, structures and improvements now or on the Closing Date situated on the Land, including without limitation, all parking areas and facilities, improvements and fixtures located on the
Land. 
  
 “Initial Earnest Money” shall mean the
sum of ONE HUNDRED FIFTEEN THOUSAND and NO/100 DOLLARS ($115,000 U.S.). 
  
 “Inspection Period” shall mean the period expiring at 5:00 P.M. Eastern Daylight Time on April 6, 2005. 
  
 “Intangible Property” shall mean all intangible property, if any, owned by Seller and related to the Land and Improvements, including
without limitation, Seller’s rights and interests, if any, in and to the following (to the extent assignable): (i) the names “Tanglewood Commons Shopping Center,” (ii) all assignable plans and specifications and other architectural
and engineering drawings for the Land and Improvements; (iii) all assignable warranties or guaranties given or made in respect of the Improvements or Personal Property; (iv) all transferable consents, authorizations, variances or waivers, licenses,
permits and approvals from any governmental or quasi-governmental agency, department, board, commission, bureau or other entity or instrumentality solely in respect of the Land or Improvements; and (v) all of Seller’s right, title and interest
in and to all assignable Operating Agreements that Purchaser agrees to assume (or is deemed to have agreed to assume). 
  
 “Land” shall mean those certain tracts or parcels of real property located in the City of Clemmons, Forsyth County, North Carolina, which
are more particularly described on EXHIBIT “A” attached hereto and made a part hereof, together with all rights, privileges and easements appurtenant to said real property, and all right, title and interest of Seller,
if any, in and to any land lying in the bed of any street, road, alley or right-of-way, open or closed, adjacent to or abutting the Land. 
  
 “Lease” and “Leases” shall mean the leases or occupancy agreements, including those in effect on the Effective Date
which are more particularly identified on EXHIBIT “F” attached hereto, and any amended or new leases entered into pursuant to Section 4.3(a) of this Agreement, which as of the Closing affect all or any portion
of the Land or Improvements. 
  
 “Management
Agreement” shall have the meaning ascribed thereto in Section 4.1(f) hereof and is more particularly described on EXHIBIT “C” attached hereto and made a part hereof. 
  

 3 

 “Monetary Objection “ or “Monetary Objections” shall mean (a) any
mortgage, deed to secure debt, deed of trust or similar security instrument encumbering all or any part of the Property, (b) any mechanic’s, materialman’s or similar lien (unless resulting from any act or omission of Purchaser or any of
its agents, contractors, representatives or employees or any tenant of the Property), (c) the lien of ad valorem real or personal property taxes, assessments and governmental charges affecting all or any portion of the Property which are delinquent,
and (d) any judgment of record against Seller in the county or other applicable jurisdiction in which the Property is located. 
  
 “Operating Agreements” shall mean all those certain contracts and agreements more particularly described on
EXHIBIT “H” attached hereto and made a part hereof relating to the repair, maintenance or operation of the Land, Improvements or Personal Property which will extend beyond the Closing
Date, including, without limitation, all equipment leases. 
  
 “Other Notices of Sale” shall have the meaning ascribed thereto in Section 5.1(s) hereof. 
  
 “Permitted Exceptions” shall mean, collectively, (a) liens for taxes, assessments and governmental charges not yet due and payable or due
and payable but not yet delinquent, (b) the Leases, and (c) such other easements, restrictions and encumbrances that do not constitute Monetary Objections and which have been waived by Purchaser after objection pursuant to Section 3.4 hereof.

  
 “Personal Property” shall mean all furniture
(including common area furnishings and interior landscaping items), carpeting, draperies, appliances, personal property (excluding any computer software which either is licensed to Seller or Seller deems proprietary), machinery, apparatus and
equipment owned by Seller and currently used exclusively in the operation, repair and maintenance of the Land and Improvements and situated thereon, as generally described on EXHIBIT “B” attached hereto and made a
part hereof, and all non-confidential books, records and files (excluding any appraisals, budgets, strategic plans for the Property, internal analyses, information regarding the marketing of the Property for sale, submissions relating to
Seller’s obtaining of corporate or partnership authorization, attorney and accountant work product, attorney-client privileged documents, or other information in the possession or control of Seller or Seller’s property manager which Seller
deems proprietary) relating to the Land and Improvements. The Personal Property does not include any property owned by tenants, contractors or licensees, and shall be conveyed by Seller to Purchaser subject to depletions, replacements and
additions in the ordinary course of Seller’s business. 
  
 “Property” shall have the meaning ascribed thereto in Section 2.1 hereof. 
  
 “Purchase Price” shall be the amount specified in Section 2.4 hereof. 
  
 “Purchaser’s Certificate” shall have the meaning ascribed thereto in Section 5.2(d) hereof.

  
 “Rent Roll” shall mean
EXHIBIT “F” attached to this Agreement and made a part hereof. 
  

 4 

 “Security Deposits” shall mean any security deposits, rent or damage deposits or similar
amounts (other than rent paid for the month in which the Closing occurs) actually held by Seller with respect to any of the Leases. 
  
 “Seller’s Affidavit” shall mean the form of owner’s affidavit to be given by Seller at Closing to the Title Company in the form
attached hereto as SCHEDULE 6. 
  
 “Seller’s Certificate” shall mean the form of certificate to be executed and delivered by Seller to Purchaser at the Closing with respect to the truth and accuracy of Seller’s warranties and representations
contained in this Agreement (modified and updated as the circumstances require), in the form attached hereto as SCHEDULE 7. 
  
 “Seller’s Estoppel” shall mean the form of estoppel that may be executed and delivered by Seller at
Closing in substantially the form attached hereto as SCHEDULE 11, as contemplated in Section 6.1(d) hereof. 
  
 “Survey” and “Surveys” shall have the meaning ascribed thereto in Section 3.4 hereof. 
  
 “Taxes” shall have the meaning ascribed thereto in Section
5.4(a) hereof. 
  
 “Tenant Estoppel Certificate”
or “Tenant Estoppel Certificates” shall mean certificates to be sought from the tenants under the Leases in substantially the form attached hereto as EXHIBIT “I”; provided, however, if any Lease
provides for the form or content of an estoppel certificate from the tenant thereunder, the Tenant Estoppel Certificate with respect to such Lease may be in the form as called for therein. 
  
 “Tenant Inducement Costs” shall mean any out-of-pocket
payments required under a Lease to be paid by the landlord thereunder to or for the benefit of the tenant thereunder which is in the nature of a tenant inducement, including specifically, but without limitation, tenant improvement costs, lease
buyout payments, and moving, design, refurbishment and club membership allowances and costs. The term “Tenant Inducement Costs” shall not include loss of income resulting from any free rental period, it being understood and agreed
that Seller shall bear the loss resulting from any free rental period until the Closing Date and that Purchaser shall bear such loss from and after the Closing Date. 
  
 “Tenant Notices of Sale” shall have the meaning ascribed thereto in Section 5.1(r) hereof.

  
 “Title Company” shall mean Chicago Title
Insurance Company at its national business unit office at 4170 Ashford Dunwoody Road, Suite 460, in Atlanta, Georgia 30319. 
  
 “Title Commitment” shall have the meaning ascribed thereto in Section 3.4 hereof. 
  
 “Warranty Deed” shall mean the form of deed attached hereto
as SCHEDULE 1. 
  

 5 

 ARTICLE 2 
 PURCHASE AND SALE 
  
 2.1 Agreement to Sell and Purchase. Subject to and in accordance with the terms and provisions of this Agreement, Seller agrees to sell and Purchaser agrees to purchase, the following property (collectively, the
“Property”): 
  
 (a) the Land; 
  
 (b) the Improvements; 
  
 (c) all of Seller’s right, title and interest in and to the Leases, any
guaranties of the Leases and the Security Deposits; 
  
 (d) the
Personal Property; and 
  
 (e) the Intangible Property.

  
 2.2 Permitted Exceptions. The Property shall be
conveyed subject to the matters which are, or are deemed to be, Permitted Exceptions. 
  
 2.3 Earnest Money. 
  
 (a) Prior to the execution and delivery of this Agreement, Purchaser has delivered the Initial Earnest Money to Escrow Agent by federal wire transfer or by Purchaser’s check, payable to Escrow Agent, which Initial Earnest Money shall
be held and released by Escrow Agent in accordance with the terms of the Escrow Agreement. 
  
 (b) On or before the last day of the Inspection Period, Purchaser shall deposit the Additional Earnest Money with Escrow Agent. The parties hereto mutually acknowledge and agree that time is of the essence in respect
of Purchaser’s timely deposit of the Additional Earnest Money with Escrow Agent prior to the expiration of the Inspection Period; and that if Purchaser fails, at any time on or before the expiration of the Inspection Period, (i) to give written
notice to Seller of Purchaser’s election to terminate this Agreement, and (ii) deposit the Additional Earnest Money with Escrow Agent, this Agreement shall terminate, and Escrow Agent shall return the Initial Earnest Money to Purchaser, and
neither party hereto shall have any further rights or obligations hereunder, except those provisions of this Agreement which by their express terms survive the termination of this Agreement. 
  
 (c) The Earnest Money shall be applied to the Purchase Price at the Closing
and shall otherwise be held, refunded, or disbursed in accordance with the terms of the Escrow Agreement and this Agreement. All interest and other income from time to time earned on the Earnest Money shall be earned for the account of Purchaser,
and shall be a part of the Earnest Money; and the Earnest Money hereunder shall be comprised of the Earnest Money and all such interest and other income. 
  
 2.4 Purchase Price. Subject to adjustment and credits as otherwise specified in this Section 2.4 and elsewhere in this Agreement, the
purchase price (the “Purchase Price”) to be 
  

 6 

 paid by Purchaser to Seller for the Property shall be ELEVEN MILLION FIVE HUNDRED THOUSAND and NO/100 DOLLARS
($11,500,000 U.S.). The Purchase Price shall be paid by Purchaser to Seller at the Closing as follows: 
  
 (a) The Earnest Money shall be paid by Escrow Agent to Seller at Closing; and 
  
 (b) An amount equal to the Purchase Price shall be paid by Purchaser to Seller at the Closing or by wire transfer of
immediately available federal funds to an account designated by Seller, less the amount of the Earnest Money paid by Escrow Agent to Seller at Closing, and subject to prorations, adjustments and credits as otherwise specified in this Agreement.

  
 2.5 Independent Contract Consideration. In
addition to, and not in lieu of the delivery to Escrow Agent of the Earnest Money, Purchaser shall deliver to Seller, concurrently with Purchaser’s execution and delivery of this Agreement to Seller, Purchaser’s check, payable to the order
to Seller, in the amount of ONE HUNDRED and NO/100 DOLLARS ($100 U.S.). Seller and Purchaser hereby mutually acknowledge and agree that said sum represents adequate bargained for consideration for Seller’s execution and delivery of this
Agreement and Purchaser’s right to inspect the Property pursuant to Article III. Said sum is in addition to and independent of any other consideration or payment provided for in this Agreement and is nonrefundable in all events. 
  
 2.6 Closing. The consummation of the sale by Seller and
purchase by Purchaser of the Property (the “Closing”) shall be held on any date on or before the date which is fifteen (15) days following the expiration of the Inspection Period. Subject to the foregoing, the Closing shall take
place at an office in the metropolitan Atlanta, Georgia area, and at such specific place, time and date (the “Closing Date”) as shall be designated by Purchaser in a written notice to Seller not less than three (3) Business Days
prior to Closing. If Purchaser fails to give such notice of the Closing Date, the Closing shall be at the offices of McGuireWoods LLP, 1170 Peachtree Street, N.E., Suite 2100, Atlanta, Georgia 30309, at 2:00 p.m. on the outside date for Closing as
provided above. Notwithstanding the foregoing, Seller and Purchaser acknowledge that the transaction contemplated hereunder shall be closed by delivering executed documents and the other closing deliveries required under Article V hereof to the
Escrow Agent. Said deliveries shall be held by the Escrow Agent pending the satisfaction of (i) the other conditions to Closing contained herein; and (ii) any written escrow instructions delivered by Seller to the Escrow Agent. 
  
 ARTICLE 3 
 PURCHASER’S INSPECTION AND REVIEW RIGHTS 
  
 3.1 Due Diligence Inspections. 
  
 (a) From and after the Effective Date until the Closing Date or earlier termination of this Agreement, Seller shall permit Purchaser and its authorized
representatives to inspect the Property to perform due diligence, soil analysis and environmental investigations, to examine the records of Seller with respect to the Property, and make copies thereof, at such times 
  

 7 

 during normal business hours as Purchaser or its representatives may request. All such inspections shall be
nondestructive in nature, and specifically shall not include any physically intrusive testing. All such inspections shall be performed in such a manner to minimize any interference with the business of the tenants under the Leases at the Property
and, in each case, in compliance with Seller’s rights and obligations as landlord under the Leases. All inspection fees, appraisal fees, engineering fees and all other costs and expenses of any kind incurred by Purchaser relating to the
inspection of the Property shall be solely Purchaser’s expense. Seller reserves the right to have a representative present at the time of making any such inspection. Purchaser shall notify Seller not less than one (1) Business Day in advance of
making any such inspection. 
  
 (b) If the Closing is not
consummated hereunder, Purchaser shall promptly (and as a condition to the refund of the Earnest Money) deliver copies of all reports, surveys and other information furnished to Purchaser by third parties in connection with such inspections to
Seller; provided, however, that delivery of such copies and information shall be without warranty or representation whatsoever, express or implied, including, without limitation, any warranty or representation as to ownership, accuracy, adequacy or
completeness thereof or otherwise. This Section 3.1(b) shall survive the termination of this Agreement. 
  
 (c) To the extent that Purchaser or any of its representatives, agents or contractors damages or disturbs the Property or any portion thereof, Purchaser
shall return the same to substantially the same condition which existed immediately prior to such damage or disturbance. Purchaser hereby agrees to and shall indemnify, defend and hold harmless Seller from and against any and all expense, loss or
damage which Seller may incur (including, without limitation, reasonable attorney’s fees actually incurred) as a result of any act or omission of Purchaser or its representatives, agents or contractors, other than any expense, loss or damage to
the extent arising from any act or omission of Seller during any such inspection and other than any expense, loss or damage resulting from the discovery or release of any Hazardous Substances at the Property (other than Hazardous Substances brought
on to the Property by Purchaser or its representatives, agents or contractors, or any release of Hazardous Substances resulting from the negligence of Purchaser or its representatives, agents or contractors). Said indemnification agreement shall
survive the Closing and any earlier termination of this Agreement. Purchaser shall maintain and shall ensure that Purchaser’s consultants and contractors maintain commercial general liability insurance in an amount not less than TWO MILLION and
NO/100 DOLLARS ($2,000,000 U.S.), combined single limit, and in form and substance adequate to insure against all liability of Purchaser and its consultants and contractors, respectively, and each of their respective agents, employees and
contractors, arising out of inspections and testing of the Property or any part thereof made on Purchaser’s behalf. Purchaser agrees to provide to Seller a certificate of insurance with regard to each applicable liability insurance policy upon
request by Purchaser or its consultants or contractors, as the case may be, pursuant to this Section 3.1. 
  

 8 

 3.2 Seller’s Deliveries to Purchaser; Purchaser’s Access to Seller’s Property
Records. 
  
 (a) Purchaser acknowledges receipt of the
following (and Purchaser further acknowledges that no additional items are required to be delivered by Seller to Purchaser except as may be expressly set forth in other provisions of this Agreement): 
  
 (i) Copies of current Property tax bills and assessor’s
statements of current assessed value. 
  
 (ii)
Copies of Property operating statements for the past 24 months. 
  
 (iii) 2005 Operating Budget with respect to the Property. 
  
 (iv) Copies of all Leases, guarantees, any amendments and letter agreements relating thereto existing as of the Effective Date.

  
 (v) An aged tenant receivable report, if any,
regarding income from the tenants. 
  
 (vi)
Monthly tenant, tax and CAM billing statements and general ledger for the past 24 months. 
  
 (vii) All Operating Agreements currently in place at the Property. 
  
 (viii) A copy of Seller’s (or its affiliate’s) current policy of title insurance with respect to
the Land and Improvements. 
  
 (ix) A copy of
Seller’s Survey (as hereinafter defined). 
  
 (b) From the
Effective Date until the Closing Date or earlier termination of this Agreement, Seller shall allow Purchaser and Purchaser’s representatives, on reasonable advance notice and during normal business hours, to have access to Seller’s
existing non-confidential books, records and files relating to the Property, at the office of the Broker, or at Seller’s office at 6200 The Corners Parkway, Suite 250, Norcross, Georgia 30092, for the purpose of inspecting and (at
Purchaser’s expense) copying the same, including, without limitation, the materials listed below (to the extent any or all of the same are in Seller’s possession), subject, however, to the limitations of any confidentiality or
nondisclosure agreement to which Seller may be bound, and provided that Seller shall not be required to deliver or make available to Purchaser (i) any records, reports, notices, test results or other information in Seller’s possession relating
to the environmental condition of the Property, (ii) any appraisals, budgets, strategic plans for the Property, internal analyses, information regarding the marketing of the Property for sale, submissions relating to Seller’s obtaining of
corporate authorization, attorney and accountant work product, attorney-client privileged documents, or other information in the possession or control of Seller or Seller’s property manager which Seller deems proprietary, and (iii) any records,
reports, test results regarding the condition of the Improvements. Purchaser acknowledges and agrees, however, that Seller makes no 
  

 9 

 representation or warranty of any nature whatsoever, express or implied, with respect to the ownership, enforceability,
accuracy, adequacy or completeness or otherwise of any of such records, evaluations, data, investigations, reports, cost estimates or other materials. If the Closing contemplated hereunder fails to take place for any reason, Purchaser shall promptly
(and as a condition to the refund of the Earnest Money) return all copies of materials copied from Seller’s books, records and files relating to the Property. It is understood and agreed that Seller shall have no obligation to obtain,
commission or prepare any such books, records, files, reports or studies not now in Seller’s possession. Subject to the foregoing, Seller agrees to make available to Purchaser for inspection and copying, without limitation, the following books,
records and files relating to the Property, all to the extent the same are in Seller’s possession: 
  
 (i) Tenant Information. Copies of the Leases and any financial statements or other financial information of any tenants under the
Leases (and the Lease guarantors, if any), written information relative to the tenants’ payment histories, and tenant correspondence, to the extent Seller has the same in its possession; 
  
 (ii) Commission Agreements. Copies of the Commission
Agreements; 
  
 (iii) Plans. All available
construction plans and specifications in Seller’s possession relating to the development of the Property, the Improvements and the Personal Property; 
  
 (iv) Intentionally Omitted; 
  
 (v) Permits; Licenses. Copies of any permits, licenses, or other similar documents in Seller’s possession relating to the use,
occupancy or operation of the Property; and 
  
 (vi) Operating Costs and Expenses. All available records of any operating costs and expenses for the Property in Seller’s possession. 
  
 3.3 Condition of the Property. 
  
 (a) Seller recommends that Purchaser employ one or more independent engineering and/or environmental professionals to perform engineering, environmental
and physical assessments on Purchaser’s behalf in respect of the Property and the condition thereof. Purchaser and Seller mutually acknowledge and agree that the Property is being sold in an “AS IS” condition and “WITH ALL
FAULTS,” known or unknown, contingent or existing. Purchaser has the sole responsibility to fully inspect the Property, to investigate all matters relevant thereto, including, without limitation, the condition of the Property, and to reach its
own, independent evaluation of any risks (environmental or otherwise) or rewards associated with the ownership, leasing, management and operation of the Property. 
  
 (b) To the fullest extent permitted by law, Purchaser does hereby unconditionally waive and release Seller, and its
partners, beneficial owners, officers, directors, shareholders and employees from any future claims and liabilities of any nature arising from or relating to the presence or alleged presence of Hazardous Substances in, on, at, from, under or

  

 10 

 about the Property or any adjacent property, including, without limitation, any claims under or on account of any
Environmental Law regardless of whether such Hazardous Substances are located in, on, at, from, under or about the Property or any adjacent property prior to or after the date hereof. In addition, Purchaser does hereby covenant and agree to defend,
indemnify, and hold harmless Seller and its partners, beneficial owners, officers, directors, shareholders and employees from and against any claims, demands, penalties, fines, liabilities, settlements, damages, costs or expenses of whatever kind or
nature, known or unknown, existing and future, including any action or proceeding brought or threatened, or ordered by governmental authorities, relating to any Hazardous Substances which may be placed, located or released on the Property after the
date of Closing. The terms and provisions of this paragraph shall survive the Closing hereunder. 
  
 3.4 Title and Survey. Promptly upon execution of this Agreement, Purchaser may order at its expense, from the Title Company a preliminary
title commitment with respect to the Property (the “Title Commitment”). Purchaser shall direct the Title Company to send a copy of the Title Commitment to Seller. Promptly upon execution of this Agreement, Purchaser may arrange,
also at its expense, for the preparation of an update to Seller’s existing survey of the Property (the “Survey”). Purchaser shall make copies of any such Survey available to Seller prior to Closing. Purchaser shall have until
the end of the Inspection Period to give written notice (the “First Title Notice”) to Seller of such objections as Purchaser may have to any exceptions to title disclosed in the Title Commitment or in any Survey or otherwise in
Purchaser’s examination of title. From time to time at any time after the First Title Notice and prior to the Closing Date, Purchaser may give written notice of exceptions to title first appearing of record after the effective date of any
updated title commitment or matters of survey which would not have been disclosed by an accurate updated examination of title or preparation of an updated ALTA survey prior to date of the initial Title Commitment or the initial Survey. Seller shall
have the right, but not the obligation (except as to Monetary Objections), to attempt to remove, satisfy or otherwise cure any exceptions to title to which the Purchaser so objects. Within five (5) Business Days after receipt of Purchaser’s
First Title Notice, Seller shall give written notice to Purchaser informing the Purchaser of Seller’s election with respect to such objections. If Seller fails to give written notice of election within such five (5) Business Day period, Seller
shall be deemed to have elected not to attempt to cure the objections (other than Monetary Objections). If Seller elects to attempt to cure any objections, Seller shall be entitled to one or more reasonable adjournments of the Closing of up to but
not beyond the thirtieth (30th) day following the initial date set for the Closing to attempt such cure, but, except for Monetary Objections, Seller shall not be obligated to expend any sums, commence any suits or take any other action to effect
such cure. Except as to Monetary Objections, if Seller elects, or is deemed to have elected, not to cure any exceptions to title to which Purchaser has objected or if, after electing to attempt to cure, Seller determines that it is unwilling or
unable to remove, satisfy or otherwise cure any such exceptions, Purchaser’s sole remedy hereunder in such event shall be either (i) to accept title to the Property subject to such exceptions as if Purchaser had not objected thereto and without
reduction of the Purchase Price, (ii) if such exceptions are matters first appearing of record after the date of this Agreement, and arise by, through or under Seller, to terminate this Agreement, or (iii) to terminate this Agreement within three
(3) Business Days after receipt of written notice from Seller either of Seller’s election not to attempt to cure any objection or of Seller’s determination, having previously elected to attempt to cure, that Seller is unable or unwilling
to 
  

 11 

 do so, or three (3) Business Days after Seller is deemed hereunder to have elected not to attempt to cure such objections
(and upon any such termination under clause (ii) or (iii) above, Escrow Agent shall return the Earnest Money to Purchaser). Notwithstanding anything to the contrary contained elsewhere in this Agreement, Seller shall be obligated to cure or satisfy
all Monetary Objections at or prior to Closing, and may use the proceeds of the Purchase Price at Closing for such purpose. 
  
 3.5 Operating Agreements. Provided that Seller has provided to Purchase a list of Operating Agreements prior to the date which is twenty
(20) days prior to the expiration of the Inspection Period, then prior to fifteen (15) days prior to the expiration of the Inspection Period, Purchaser will designate in a written notice to Seller which Operating Agreements Purchaser will assume and
which Operating Agreements will be terminated by Seller at Closing; provided, however, that Seller shall not be obligated to terminate, and Purchaser shall assume Seller’s obligations arising from and after Closing under, all Operating
Agreements which cannot be terminated by Seller upon no more than thirty (30) days prior notice or which can be terminated by Seller only upon payment of a fee, premium, penalty or other form of early termination compensation. Taking into account
any credits or prorations to be made pursuant to Article 5 hereof for payments coming due after Closing but accruing prior to Closing, Purchaser will assume the obligations arising from and after the Closing Date under those Operating Agreements
which Purchaser has designated will not be terminated. Seller, without cost to Purchaser, shall terminate at Closing all Operating Agreements that are not so assumed, to the extent any relates to the Property. If Purchaser fails to notify Seller in
writing on or prior to the date which is fifteen (15) days prior to the expiration of the Inspection Period of any Operating Agreements that Purchaser does not desire to assume at Closing, Purchaser shall be deemed to have elected to assume all such
Operating Agreements and to have waived its right to require Seller to terminate such Operating Agreements at Closing. 
  
 3.6 Termination of Agreement. Purchaser shall have until the expiration of the Inspection Period to determine, in Purchaser’s sole
opinion and discretion, the suitability of the Property for acquisition by Purchaser or Purchaser’s permitted assignee. Purchaser shall have the right to terminate this Agreement at any time on or before said time and date of expiration of the
Inspection Period by giving written notice to Seller of such election to terminate. If Purchaser so elects to terminate this Agreement pursuant to this Section 3.6, Escrow Agent shall pay the Earnest Money to Purchaser, whereupon, except for those
provisions of this Agreement which by their express terms survive the termination of this Agreement, no party hereto shall have any other or further rights or obligations under this Agreement. If Purchaser fails to so terminate this Agreement prior
to the expiration of the Inspection Period, Purchaser shall have no further right to terminate this Agreement pursuant to this Section 3.6. 
  
 3.7 Confidentiality. All information acquired by Purchaser or any of its designated representatives (including by way of example, but not in
limitation, the officers, directors, shareholders and employees of Purchaser, and Purchaser’s engineers, consultants, counsel and potential lenders, and the officers, directors, shareholders and employees of each of them) with respect to the
Property, whether delivered by Seller or any of Seller’s representatives or obtained by Purchaser as a result of its inspection and investigation of the Property, examination of Seller’s books, records and files in respect of the Property,
or otherwise (collectively, the “Due 
  

 12 

 Diligence Material”) shall be used solely for the purpose of determining whether the Property is suitable for
Purchaser’s acquisition and ownership thereof and for no other purpose whatsoever. The terms and conditions which are contained in this Agreement and all Due Diligence Material which is not published as public knowledge or which is not
generally available in the public domain shall be kept in strict confidence by Purchaser and shall not be disclosed to any individual or entity other than to those authorized representatives of Purchaser who need to know the information for the
purpose of assisting Purchaser in evaluating the Property for Purchaser’s potential acquisition thereof; provided however, that Purchaser shall have the right to disclose any such information if required by applicable law or as may be necessary
in connection with any court action or proceeding with respect to this Agreement. Purchaser shall and hereby agrees to indemnify and hold Seller harmless from and against any and all loss, liability, cost, damage or expense that Seller may suffer or
incur (including, without limitation, reasonable attorneys’ fees actually incurred) as a result of the unpermitted disclosure or use of any of the Due Diligence Material to any individual or entity other than an appropriate representative of
Purchaser and/or the use of any Due Diligence Material for any purpose other than as herein contemplated and permitted. If Purchaser elects to terminate this Agreement pursuant to any provision hereof permitting such termination, or if the Closing
contemplated hereunder fails to occur for any reason, Purchaser will promptly return to Seller all Due Diligence Material in the possession of Purchaser and any of its representatives, and destroy all copies, notes or abstracts or extracts thereof,
as well as all copies of any analyses, compilations, studies or other documents prepared by Purchaser or for its use (whether in written or electronic form) containing or reflecting any Due Diligence Material. In the event of a breach or threatened
breach by Purchaser or any of its representatives of this Section 3.7, Seller shall be entitled, in addition to other available remedies, to an injunction restraining Purchaser or its representatives from disclosing, in whole or in part, any of the
Due Diligence Material and any of the terms and conditions of this Agreement. Nothing contained herein shall be construed as prohibiting or limiting Seller from pursuing any other available remedy, in law or in equity, for such breach or threatened
breach. The provisions of this Section shall survive the Closing and any earlier termination of this Agreement. 
  
 ARTICLE 4 
 REPRESENTATIONS, WARRANTIES AND OTHER AGREEMENTS 
  
 4.1 Representations and Warranties of Seller. Seller hereby
makes the following representations and warranties to Purchaser: 
  
 (a) Organization, Authorization and Consents. Seller is a duly organized and validly existing general partnership under the laws of the State of Georgia. Seller has the right, power and authority to enter into this Agreement and to
convey the Property in accordance with the terms and conditions of this Agreement, to engage in the transactions contemplated in this Agreement and to perform and observe the terms and provisions hereof. 
  
 (b) Action of Seller, Etc. Seller has taken all necessary action to
authorize the execution, delivery and performance of this Agreement, and upon the execution and delivery of any document to be delivered by Seller on or prior to the Closing, this Agreement and such document shall constitute the valid and binding
obligation and agreement of Seller, enforceable 
  

 13 

 against Seller in accordance with its terms, except as enforceability may be limited by bankruptcy, insolvency,
reorganization, moratorium or similar laws of general application affecting the rights and remedies of creditors. 
  
 (c) No Violations of Agreements. Neither the execution, delivery or performance of this Agreement by Seller, nor compliance with the terms and
provisions hereof, will result in any breach of the terms, conditions or provisions of, or conflict with or constitute a default under, or result in the creation of any lien, charge or encumbrance upon the Property or any portion thereof pursuant to
the terms of any indenture, deed to secure debt, mortgage, deed of trust, note, evidence of indebtedness or any other agreement or instrument by which Seller is bound. 
  
 (d) Litigation. To Seller’s knowledge, except as set forth on EXHIBIT “E,”
Seller has received no written notice that any investigation, action or proceeding is pending or threatened, which (i) if determined adversely to Seller, materially and adversely affects the use or value of the Property, or (ii) questions the
validity of this Agreement or any action taken or to be taken pursuant hereto, or (iii) involves condemnation or eminent domain proceedings involving the Property or any portion thereof. 
  
 (e) Existing Leases. To Seller’s knowledge, (i) other than the Leases listed in the Rent Roll, Seller has not
entered into any contract or agreement with respect to the occupancy of the Property or any portion or portions thereof which will be binding on Purchaser after the Closing; (ii) the copies of the Leases heretofore delivered by Seller to Purchaser
are true, correct and complete copies thereof; and (iii) the Leases have not been amended except as evidenced by amendments similarly delivered and constitute the entire agreement between Seller and the tenants thereunder. 
  
 (f) Leasing Commissions. To Seller’s knowledge, (i) there are no
lease brokerage agreements, leasing commission agreements or other agreements providing for payments of any amounts for leasing activities or procuring tenants with respect to the Property or any portion or portions thereof other than as disclosed
in EXHIBIT “C” attached hereto (the “Commission Agreements”), and (ii) there are no agreements currently in effect relating to the management and leasing of the Property other than as disclosed on
said EXHIBIT “C” (the “Management Agreement”); and that all leasing commissions, brokerage fees and management fees accrued or due and payable under the Commission Agreements and the Management
Agreement, as of the date hereof and at the Closing have been or shall be paid in full. At Closing, Seller shall terminate the Management Agreement as to the Property at no cost to Purchaser. Notwithstanding anything to the contrary contained
herein, Purchaser shall be responsible for the payment of all leasing commissions payable for (A) any new leases entered into after the Effective Date that have been approved (or deemed approved) by Purchaser, and (B) the renewal, expansion or
extension of any Leases existing as of the Effective Date and exercised or effected after the Effective Date; and Purchaser shall pay to the manager under the Management Agreement leasing commissions with respect to leases entered into (or
expansions, renewals or extensions effected) by Purchaser within ninety (90) days after the Closing Date with the tenants or prospective tenants listed in item IV of EXHIBIT “C” hereto and approved by Purchaser;
provided, however, with respect to the relocation of Wilson Communication to a new 
  

 14 

 location within the Property and the expansion of Prudential Carolina into the adjacent space, Seller shall be
responsible for all leasing commissions, tenant improvement costs or other costs or expenses related thereto in the amount not to exceed Twenty Six Thousand Two Hundred Seventy Six and 83/100 Dollars ($26,276.83) (the “Tenant Relocation and
Expansion Funds”). In the event the Tenant Relocation and Expansion Funds have not been paid by Seller prior to Closing, the Tenant Relocation and Expansion Funds shall be delivered by Seller into escrow with the Escrow Agent at Closing subject
to an escrow agreement in the form attached hereto as EXHIBIT “L” entered into at Closing. In the event that Purchaser has (i) not entered into lease amendments related to the relocation of Wilson Communication or the
expansion of Prudential Carolina within ninety (90) days after Closing, or (ii) not incurred the costs related to the relocation of Wilson Communication or the expansion of Prudential Carolina into the adjacent space within ninety (90) days after
Closing, or (iii) if the actual leasing commissions and tenant improvement costs for the relocation of Wilson Communication or the expansion of Prudential Carolina are less than the Tenant Relocation and Expansion Funds, any Tenant Relocation and
Expansion Funds remaining in escrow shall be refunded to Seller upon the written request to the Escrow Agent signed by both Seller and Purchaser. 
  
 (g) Taxes and Assessments. Except as may be set forth on EXHIBIT “J” attached hereto and made a part hereof, Seller
has not filed, and has not retained anyone to file, notices of protests against, or to commence action to review, real property tax assessments against the Property. 
  
 (h) Environmental Matters. Except as may be set forth in any Due Diligence Material or as otherwise disclosed in
writing by Seller, Seller has received no written notification that any governmental or quasi-governmental authority has determined that there are any violations of any Environmental Law with respect to the Property, nor to Seller’s knowledge
has Seller received any written notice that any governmental or quasi-governmental authority is contemplating an investigation of the Property, with respect to a violation or suspected violation of any Environmental Law. 
  
 (i) Compliance with Laws. To Seller’s knowledge and except as set
forth on EXHIBIT “G,” Seller has received no written notice alleging any violations of law, municipal or county ordinances, or other legal requirements with respect to the Property or any portion thereof. 

 
 (j) Easements and Other Agreements. To Seller’s knowledge,
Seller has not received any written notice of Seller’s default in complying with the terms and provisions of any of the covenants, conditions, restrictions or easements constituting a Permitted Exception. 
  
 (k) Other Agreements. To Seller’s knowledge, except for the
Leases, the Commission Agreements, the Management Agreement and the Permitted Exceptions, there are no leases, Operating Agreements, management agreements, brokerage agreements, leasing agreements or other agreements or instruments in force or
effect that grant to any person or any entity any right, title, interest or benefit in and to all or any part of the Property or any rights relating to the use, operation, management, maintenance or repair of all or any part of the Property which
will survive the Closing or be binding upon Purchaser other than those which Purchaser has agreed in writing to assume prior to the expiration of the Inspection Period (or is deemed to have agreed to assume) or which are terminable upon thirty (30)
days notice without payment of premium or penalty. 
  

 15 

 (l) Seller Not a Foreign Person. Seller is not a “foreign person” which would subject
Purchaser to the withholding tax provisions of Section 1445 of the Internal Revenue Code of 1986, as amended. 
  
 (m) Condemnation. Except as set forth on EXHIBIT “E,” Seller has received no written notice of the commencement of
any proceedings for taking by condemnation or eminent domain of any part of the Property. 
  
 (n) Employees. Seller has no employees to whom by virtue of such employment Purchaser will have any obligation after the Closing. 
  
 The representations and warranties made in this Agreement by Seller shall be continuing and shall be deemed remade by Seller
as of the Closing Date, with the same force and effect as if made on, and as of, such date, subject to Seller’s right to update such representations and warranties by written notice to Purchaser and in Seller’s certificate to be delivered
pursuant to Section 5.1(i) hereof. All representations and warranties made in this Agreement by Seller shall survive the Closing for a period of one hundred eighty (180) days, and upon expiration thereof shall be of no further force or effect except
to the extent that with respect to any particular alleged breach, Purchaser gives Seller written notice prior to the expiration of said one hundred eighty (180) day period of such alleged breach with reasonable detail as to the nature of such breach
and files an action against Seller with respect thereto within ninety (90) days after the giving of such notice. 
  
 Notwithstanding anything to the contrary contained in this Section 4.1, Seller shall have no liability to Purchaser for the breach of any representation
or warranty made in this Agreement unless the loss resulting from Seller’s breach of its representations and warranties exceeds, in the aggregate, FIFTY THOUSAND and NO/100 DOLLARS ($50,000 U.S.), in which event Seller shall be liable for each
dollar of damages resulting from the breach or breaches of its representations and warranties, but in no event shall Seller’s total liability for any such breach or breaches exceed, in the aggregate, FIVE HUNDRED SEVENTY-FIVE THOUSAND and
NO/100 DOLLARS ($575,000 U.S.). In no event shall Seller be liable for, nor shall Purchaser seek, any punitive damages; and in no event shall any claim for a breach of any representation or warranty of Seller be actionable or payable if the breach
in question results from or is based on a condition, state of facts or other matter which was known to Purchaser prior to the Closing or which was contained in the Due Diligence Material or in any of Seller’s files, books or records made
available to Purchaser for inspection. 
  
 Except as otherwise
expressly provided in this Agreement or in any documents to be executed and delivered by Seller to Purchaser at the Closing, Seller has not made, and Purchaser has not relied on, any information, promise, representation or warranty, express or
implied, regarding the Property, whether made by Seller, on Seller’s behalf or otherwise, including, without limitation, the physical condition of the Property, the financial condition of the tenants under the Leases, title to or the boundaries
of the Property, pest control matters, soil conditions, the presence, existence or absence of hazardous wastes, toxic substances or other 
  

 16 

 environmental matters, compliance with building, health, safety, land use and zoning laws, regulations and orders,
structural and other engineering characteristics, traffic patterns, market data, economic conditions or projections, past or future economic performance of the tenants or the Property, and any other information pertaining to the Property or the
market and physical environments in which the Property is located. Purchaser acknowledges (i) that Purchaser has entered into this Agreement with the intention of making and relying upon its own investigation or that of Purchaser’s own
consultants and representatives with respect to the physical, environmental, economic and legal condition of the Property and (ii) that Purchaser is not relying upon any statements, representations or warranties of any kind, other than those
specifically set forth in this Agreement or in any document to be executed and delivered by Seller to Purchaser at the Closing, made (or purported to be made) by Seller or anyone acting or claiming to act on Seller’s behalf. Purchaser has
inspected the Property and is fully familiar with the physical condition thereof and, subject to the terms and conditions of this Agreement, shall purchase the Property its “as is” condition, “with all faults,” on the Closing
Date. The provisions of the foregoing three (3) paragraphs of this Section shall survive the Closing. 
  
 4.2 Knowledge Defined. All references in this Agreement to the “knowledge of Seller” or “to Seller’s knowledge” or
any words of similar import shall refer only to the actual knowledge of F. Parker Hudson and George Wells, who have been actively involved in the management of Seller’s business in respect of the Property in the capacities of Director of
Dispositions and Asset Manager, respectively for Wells Capital, Inc., an affiliate of Seller. The terms “knowledge of Seller” or “to Seller’s knowledge” or any words of similar import shall not be construed, by imputation or
otherwise, to refer to the knowledge of Seller, or any affiliate of Seller, or to any other partner, beneficial owner, officer, agent, manager, representative or employee of Seller, or any of their respective affiliates, or to impose on any of the
individuals named above any duty to investigate the matter to which such actual knowledge, or the absence thereof, pertains. There shall be no personal liability on the part of the individuals named above arising out of any representations or
warranties made herein or otherwise. 
  
 4.3 Covenants and
Agreements of Seller. 
  
 (a) Leasing
Arrangements. During the pendency of this Agreement, Seller will not enter into any lease affecting the Property, or modify or amend in any material respect, or terminate, any of the existing Leases without Purchaser’s prior written consent
in each instance, which consent shall not be unreasonably withheld, delayed or conditioned and which shall be deemed given unless withheld by written notice to Seller given within three (3) Business Days after Purchaser’s receipt of
Seller’s written request therefor, each of which requests shall be accompanied by a copy of any proposed modification or amendment of an existing Lease or of any new Lease that Seller wishes to execute between the Effective Date and the Closing
Date, including, without limitation, a description of any Tenant Inducement Costs and leasing commissions associated with any proposed renewal or expansion of an existing Lease or with any such new Lease. If Purchaser fails to notify Seller in
writing of its approval or disapproval within said three (3) Business Day period, such failure by Purchaser shall be deemed to be the approval of Purchaser. At Closing and except as otherwise set forth in Section 4.1(f), Purchaser shall reimburse
Seller for any Tenant Inducement Costs, leasing commissions or other expenses, including reasonable attorneys’ fees actually incurred, by Seller pursuant to a renewal or expansion of any existing Lease or new Lease approved (or deemed approved)
by Purchaser hereunder. 
  

 17 

 (b) New Contracts. During the pendency of this Agreement, Seller will not enter into any contract,
or modify, amend, renew or extend any existing contract, that will be an obligation affecting the Property or any part thereof subsequent to the Closing without Purchaser’s prior written consent in each instance (which Purchaser agrees not to
withhold or delay unreasonably), except contracts entered into in the ordinary course of business that are terminable without cause (and without penalty or premium) on 30 days (or less) notice. 
  
 (c) Operation of Property. During the pendency of this Agreement,
Seller shall continue to operate the Property in a good and businesslike fashion consistent with Seller’s past practices. 
  
 (d) Insurance. During the pendency of this Agreement, Seller shall, at its expense, continue to maintain the fire insurance policy covering the
Improvements which is currently in force and effect. 
  
 (e)
Tenant Estoppel Certificates. Seller shall endeavor in good faith (but without obligation to incur any cost or expense) to obtain and deliver to Purchaser prior to Closing a written Tenant Estoppel Certificate in the form attached hereto as
EXHIBIT “I” signed by each tenant under each of the Leases; provided that delivery of such signed Tenant Estoppel Certificates shall be a condition of Closing only to the extent set forth in Section 6.1(d) hereof; and
in no event shall the inability or failure of Seller to obtain and deliver said Tenant Estoppel Certificates (Seller having used its good faith efforts as set forth above) be a default of Seller hereunder. 
  
 4.4 Representations and Warranties of Purchaser. 
  
 (a) Organization, Authorization and Consents. Purchaser is a duly
organized and validly existing corporation under the laws of the State of North Carolina. Purchaser has the right, power and authority to enter into this Agreement and to purchase the Property in accordance with the terms and conditions of this
Agreement, to engage in the transactions contemplated in this Agreement and to perform and observe the terms and provisions hereof. 
  
 (b) Action of Purchaser, Etc. Purchaser has taken all necessary action to authorize the execution, delivery and performance of this Agreement, and
upon the execution and delivery of any document to be delivered by Purchaser on or prior to the Closing, this Agreement and such document shall constitute the valid and binding obligation and agreement of Purchaser, enforceable against Purchaser in
accordance with its terms, except as enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws of general application affecting the rights and remedies of creditors. 
  
 (c) No Violations of Agreements. Neither the execution, delivery or
performance of this Agreement by Purchaser, nor compliance with the terms and provisions hereof, will result in any breach of the terms, conditions or provisions of, or conflict with or constitute a default under the terms of any indenture, deed to
secure debt, mortgage, deed of trust, note, evidence of indebtedness or any other agreement or instrument by which Purchaser is bound. 
  

 18 

 (d) Litigation. To Purchaser’s knowledge, Purchaser has received no written notice that any
action or proceeding is pending or threatened, which questions the validity of this Agreement or any action taken or to be taken pursuant hereto. 
  
 The representations and warranties made in this Agreement by Purchaser shall be continuing and shall be deemed remade by Purchaser as of the Closing Date,
with the same force and effect as if made on, and as of, such date subject to Purchaser’s right to update such representations and warranties by written notice to Seller and in Purchaser’s certificate to be delivered pursuant to Section
5.2(d) hereof. All representations and warranties made in this Agreement by Purchaser shall survive the Closing for a period of one hundred eighty (180) days, and upon expiration thereof shall be of no further force or effect except to the extent
that with respect to any particular alleged breach, Seller gives Purchaser written notice prior to the expiration of said one hundred eighty (180) day period of such alleged breach with reasonable detail as to the nature of such breach and files an
action against Seller with respect thereto within ninety (90) days after the giving of such notice. 
  
 ARTICLE 5 
 CLOSING DELIVERIES, CLOSING COSTS AND PRORATIONS 
  
 5.1 Seller’s Closing Deliveries. For and in consideration
of, and as a condition precedent to Purchaser’s delivery to Seller of the Purchase Price, Seller shall obtain or execute and deliver to Purchaser at Closing the following documents, all of which shall be duly executed, acknowledged and
notarized where required: 
  
 (a) Warranty Deed. A special
warranty deed to the Land and Improvements, in the form attached hereto as SCHEDULE 1 (collectively the “Warranty Deed”), subject only to the Permitted Exceptions, and executed, acknowledged and sealed by
Seller. The legal descriptions of the Land set forth in the Warranty Deed shall be based upon and conform to the applicable record title legal description contained in Seller’s vesting deed; 
  
 (b) Quitclaim Deed. If requested by Purchaser, a quitclaim deed to the
Land and Improvements (or any portion or portions thereof), in form and substance reasonably satisfactory to Seller, and executed, acknowledged and sealed by each Seller; 
  
 (c) Bill of Sale. Bill of sale for the Personal Property in the form attached hereto as SCHEDULE
2 (the “Bill of Sale”), without warranty as to the title or condition of the Personal Property; 
  
 (d) Assignment and Assumption of Leases and Security Deposits. Two (2) counterparts of an assignment and assumption of Leases and Security Deposits
from Seller and, to the extent required elsewhere in this Agreement, the obligations of Seller under the Commission Agreements in the form attached hereto as SCHEDULE 3 (the “Assignment and
Assumption of Leases”), executed, acknowledged and sealed by Seller; 
  

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 (e) Updated Rent Roll. An update of the Rent Roll (with modifications as appropriate), certified
by Seller to be accurate in all material respects as of the date of Closing; 
  
 (f) Assignment and Assumption of Operating Agreements. Two (2) counterparts of an assignment and assumption of Operating Agreements from Seller in the form attached hereto as SCHEDULE 4
(the “Assignment and Assumption of Operating Agreements”), executed, acknowledged and sealed by Seller; 
  
 (g) General Assignment. An assignment of the Intangible Property from Seller in the form attached hereto as SCHEDULE 5 (the
“General Assignment”), executed, acknowledged and sealed by Seller; 
  
 (h) Seller’s Affidavit. An owner’s affidavit from Seller substantially in the form attached hereto as SCHEDULE 6 (the “Seller’s Affidavit”), stating that
there are no known boundary disputes with respect to the Property, that there are no parties in possession of the Property other than Seller and the tenants under the Leases, that there are no brokers except as disclosed herein, that any
improvements or repairs made by, or for the account of, or at the instance of Seller to or with respect to the Property within ninety (90) days prior to the Closing have been paid for in full (or that adequate provision has been made therefor to the
reasonable satisfaction of the Title Company), and including such other matters as may be reasonably requested by the Title Company; 
  
 (i) Seller’s Certificate. A Certificate from Seller in the form attached hereto as SCHEDULE 7 (the
“Seller’s Certificate”), evidencing the reaffirmation of the truth and accuracy in all material respects of Seller’s representations, warranties, and agreements set forth in Section 4.1 hereof, with such modifications
thereto as may be appropriate in light of any change in circumstance since the Effective Date; 
  
 (j) FIRPTA Certificate. A FIRPTA Certificate from each Seller in the form attached hereto as SCHEDULE 8; 
  
 (k) Evidence of Authority Such documentation as may reasonably be required by Purchaser’s title insurer to
establish that this Agreement, the transactions contemplated herein, and the execution and delivery of the documents required hereunder, are duly authorized, executed and delivered; 
  
 (l) Settlement Statement A settlement statement setting forth the amounts paid by or on behalf of and/or credited to
each of Purchaser and Seller pursuant to this Agreement; 
  
 (m)
Surveys and Plans. Such surveys, site plans, plans and specifications, and other matters relating to the Property as are in the possession of Seller to the extent not theretofore delivered to Purchaser; 
  
 (n) Certificates of Occupancy. To the extent the same are in
Seller’s possession, original or photocopies of certificates of occupancy for all space within the Improvements located on the Property; 
  

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 (o) Leases. To the extent the same are in Seller’s possession, original executed counterparts
of the Leases; 
  
 (p) Tenant Estoppel Certificates. All
originally executed Tenant Estoppel Certificates as may be in Seller’s possession; 
  
 (q) Notices of Sale to Tenants. Seller will join with Purchaser in executing a notice, in form and content reasonably satisfactory to Seller and Purchaser (the “Tenant Notices of Sale”), which
Purchaser shall send to each tenant under the Leases informing such tenant of the sale of the Property and of the assignment to and assumption by Purchaser of Seller’s interest in the Leases and the Security Deposits and directing that all rent
and other sums payable for periods after the Closing under such Lease shall be paid as set forth in said notices; 
  
 (r) Notices of Sale to Service Contractors and Leasing Agents. Seller will join with Purchaser in executing notices, in form and content reasonably
satisfactory to Seller and Purchaser (the “Other Notices of Sale”), which Purchaser shall send to each service provider and leasing agent under the Operating Contracts and Commission Agreements (as the case may be) assumed by
Purchaser at Closing informing such service provider or leasing agent (as the case may be) of the sale of the Property and of the assignment to and assumption by Purchaser of Seller’s obligations under the Operating Agreements and Commission
Agreements arising after the Closing Date and directing that all future statements or invoices for services under such Operating Agreements and/or Commission Agreements for periods after the Closing be directed to Seller or Purchaser as set forth in
said notices; 
  
 (s) Keys and Records. All of the keys to
any door or lock on the Property and the original tenant files and other non-confidential books and records (excluding any appraisals, budgets, strategic plans for the Property, internal analyses, information regarding the marketing of the Property
for sale, submissions relating to Seller’s obtaining of corporate authorization, attorney and accountant work product, attorney-client privileged documents, or other information in the possession or control of Seller or Seller’s property
manager which Seller deems proprietary) relating to the Property in Seller’s possession; and 
  
 (t) Other Documents. Such other documents as shall be reasonably requested by Purchaser’s title insurer to effectuate the purposes and intent
of this Agreement. 
  
 5.2 Purchaser’s Closing
Deliveries. Purchaser shall obtain or execute and deliver to Seller at Closing the following documents, all of which shall be duly executed, acknowledged and notarized where required: 
  
 (a) Assignment and Assumption of Leases. Two (2) counterparts of the
Assignment and Assumption of Leases, executed, acknowledged and sealed by Purchaser; 
  
 (b) Assignment and Assumption of Operating Agreements. Two (2) counterparts of the Assignment and Assumption of Operating Agreements, executed, acknowledged and sealed by Purchaser; 
  

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 (c) General Assignment. Two (2) counterparts of the General Assignment, executed, acknowledged and
sealed by Purchaser; 
  
 (d) Purchaser’s Certificate.
A certificate in the form attached hereto as SCHEDULE 10 (“Purchaser’s Certificate”), evidencing the reaffirmation of the truth and accuracy in all material respects of Purchaser’s representations,
warranties and agreements contained in Section 4.4 hereof, with such modifications thereto as may be appropriate in light of any change in circumstances since the Effective Date; 
  
 (e) Notice of Sale to Tenants. The Tenant Notices of Sale, executed by Purchaser, as contemplated in Section 5.1(r)
hereof; 
  
 (f) Notices of Sale to Service Contractors and
Leasing Agents. The Other Notices of Sale to Service Contractors and Leasing Agents, as contemplated in Section 5.1(s) hereof; 
  
 (g) Settlement Statement A settlement statement setting forth the amounts paid by or on behalf of and/or credited to each of Purchaser and Seller
pursuant to this Agreement; 
  
 (h) Evidence of Authority.
A copy of resolutions of the beneficiaries of Purchaser, certified by the Trustee of Purchaser to be in force and unmodified as of the date and time of Closing, authorizing the purchase contemplated herein, the execution and delivery of the
documents required hereunder, and designating the signatures of the persons who are to execute and deliver all such documents on behalf of Purchaser or if Purchaser is not a trust such documentation as Seller may reasonably require to establish that
this Agreement, the transaction contemplated herein, and the execution and delivery of the documents required hereunder, are duly authorized, executed and delivered; 
  
 (i) Side Letter Agreement. A side letter agreement to use commercially reasonable efforts to provide a perpetual,
non-exclusive easement to allow Seller, its employees, agents, lessees, licensees, occupants, property users, invitees and successors, access, ingress and egress from the two (2) outparcel lots retained by Purchaser adjacent to the Property to the
Property for the purpose of using not more than ten (10) parking spaces for the parking of vehicles and a perpetual non-exclusive easement to allow pedestrian access and passage upon, over, across and through the Property for any purposes related to
the users and easements granted therein; and 
  
 (j)
Other Documents. Such other documents as shall be reasonably requested by Seller’s counsel to effectuate the purposes and intent of this Agreement. 
  

5.3 Closing Costs. Seller shall pay the cost of the documentary stamps or transfer taxes imposed by the State of North Carolina upon the
conveyance of the Property pursuant hereto, the attorneys’ fees of Seller, and all other costs and expenses incurred by Seller in closing and consummating the purchase and sale of the Property pursuant hereto. Purchaser shall pay the cost of
any owner’s title insurance premium and title examination fees, the cost of the Survey, all recording fees on all instruments to be recorded in connection with this transaction 
  

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 (other than the removal of Monetary Objections, which shall be Seller’s responsibility), the attorneys’ fees of
Purchaser, and all other costs and expenses incurred by Purchaser in the performance of Purchaser’s due diligence inspection of the Property and in closing and consummating the purchase and sale of the Property pursuant hereto. 
  
 5.4 Prorations and Credits. The items in this Section 5.4 shall
be prorated between Seller and Purchaser or credited, as specified: 
  
 (a) Taxes. All general real estate taxes imposed by any governmental authority (“Taxes”) for the year in which the Closing occurs shall be prorated between Seller and Purchaser as of the Closing. If the Closing
occurs prior to the receipt by Seller of the tax bill for the calendar year or other applicable tax period in which the Closing occurs or if the amount of such taxes is not known because the tax bill covers real property and/or improvements in
addition to the Property, Taxes shall be prorated for such calendar year or other applicable tax period based upon the prior year’s tax bill and the most accurate billing information and assessments available. 
  
 (b) Reproration of Taxes. After receipt of final Taxes and other
bills, Purchaser shall prepare and present to Seller a calculation of the reproration of such Taxes and other items, based upon the actual amount of such items charged to or received by the parties for the year or other applicable fiscal period. The
parties shall make the appropriate adjusting payment between them within thirty (30) days after presentment to Seller of Purchaser’s calculation and appropriate back-up information. Purchaser shall provide Seller with appropriate backup
materials related to the calculation, and Seller may inspect Purchaser’s books and records related to the Property to confirm the calculation. The provisions of this Section 5.4(b) shall survive the Closing for a period of one (1) year after
the Closing Date. 
  
 (c) Rents, Income and Other Expenses.
Rents and any other amounts payable by tenants shall be prorated as of the Closing Date and be adjusted against the Purchase Price on the basis of a schedule which shall be prepared by Seller and delivered to Purchaser for Purchaser’s review
and approval prior to Closing. Purchaser shall receive at Closing a credit for Purchaser’s pro rata share of the rents, additional rent, common area maintenance charges, tenant reimbursements and escalations, and all other payments payable for
the month of Closing and for all other rents and other amounts that apply to periods from and after the Closing, but which are received by Seller prior to Closing. Purchaser agrees to pay to Seller, upon receipt, any rents or other payments by
tenants under their respective Leases that apply to periods prior to Closing but are received by Purchaser after Closing; provided, however, that any delinquent rents or other payments by tenants shall be applied first to any current amounts owing
by such tenants, then to delinquent rents in the order in which such rents are most recently past due, with the balance, if any, paid over to Seller to the extent of delinquencies existing at the time of Closing to which Seller is entitled; it being
understood and agreed that Purchaser shall not be legally responsible to Seller for the collection of any rents or other charges payable with respect to the Leases or any portion thereof, which are delinquent or past due as of the Closing Date; but
Purchaser agrees that Purchaser shall send monthly notices for a period of three (3) consecutive months in an effort to collect any rents and charges not collected as of the Closing Date. Any reimbursements payable by any tenant under the terms of
any tenant lease affecting the Property as of the Closing 
  

 23 

 Date, which reimbursements pertain to such tenant’s pro rata share of increased operating expenses or common area
maintenance costs incurred with respect to the Property at any time prior to the Closing, shall be prorated upon Purchaser’s actual receipt of any such reimbursements, on the basis of the number of days of Seller and Purchaser’s respective
ownership of the Property during the period in respect of which such reimbursements are payable; and Purchaser agrees to pay to Seller Seller’s pro rata portion of such reimbursements within thirty (30) days after Purchaser’s receipt
thereof. Conversely, if any tenant under any such Lease shall become entitled at any time after Closing to a refund of tenant reimbursements actually paid by such tenant prior to Closing, then, Seller shall, within thirty (30) days following
Purchaser’s demand therefor, pay to Purchaser any amount equal to Seller’s pro rata share of such reimbursement refund obligations, said proration to be calculated on the same basis as hereinabove set forth. Seller hereby retains its right
to pursue any tenant under the Leases for sums due Seller for periods attributable to Seller’s ownership of the Property; provided, however, that Seller (i) shall be required to notify Purchaser in writing of its intention to commence or pursue
such legal proceedings; (ii) shall only be permitted to commence or pursue any legal proceedings after the date which is three (3) months after Closing, except that Seller shall be entitled to continue to pursue any legal proceedings commenced prior
to Closing; and (iii) shall not be permitted to commence or pursue any legal proceedings against any tenant seeking eviction of such tenant or the termination of the applicable Lease. The provisions of this Section 5.4(c) shall survive the Closing.

  
 (d) Percentage Rents. Percentage rents, if any,
collected by Purchaser from any tenant under such tenant’s Lease for the percentage rent accounting period in which the Closing occurs shall be prorated between Seller and Purchaser as of the Closing Date, as, if, and when received by
Purchaser, such that Seller’s pro rata share shall be an amount equal to the total percentage rentals paid for such percentage rent accounting period under the applicable Lease multiplied by a fraction, the numerator of which shall be the
number of days in such accounting period prior to Closing and the denominator of which shall be the total number of days in such accounting period; provided, however, that such proration shall be made only at such time as such tenant is current or,
after application of a portion of such payment, will be current in the payment of all rental and other charges under such tenant’s Lease that accrue and become due and payable from and after the Closing. The provisions of this Section 5.4(d)
shall survive the Closing. 
  
 (e) Tenant Inducement Costs.
Set forth on EXHIBIT “K” attached hereto and made a part hereof is a list of tenants at the Property with respect to which Tenant Inducement Costs and/or leasing commissions have not been paid in full as of the
Effective Date. Seller shall pay all such Tenant Inducement Costs and leasing commissions set forth in EXHIBIT “K” as and when the same are due and payable. If said amounts have not been paid in full on or before
Closing, Purchaser shall receive a credit against the Purchase Price in the aggregate amount of all such Tenant Inducement Costs and leasing commissions remaining unpaid at Closing, and Purchaser shall assume the obligation to pay amounts payable
after Closing up to the amount of such credit received at Closing. Except as may be specifically provided to the contrary elsewhere in this Agreement, Purchaser shall be responsible for the payment of all Tenant Inducement Costs and leasing
commissions which become due and payable (whether before or after Closing) (i) as a result of any renewals or extensions or expansions of existing Leases 
  

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 approved or deemed approved by Purchaser in accordance with Section 4.3(a) hereof between the Effective Date and the
Closing Date and under any new Leases, approved or deemed approved by Purchaser in accordance with said Section 4.3(a), and (ii) all Tenant Inducement Costs and leasing commissions that first become due and payable after Closing. The provisions of
this Section 5.4(e) shall survive the Closing. 
  
 (f) Security
Deposits. Purchaser shall receive at Closing a credit for all Security Deposits transferred and assigned to Purchaser at Closing in connection with the Leases, together with a detailed inventory of such Security Deposits certified by Seller in
the updated Rent Roll to be delivered by Seller at Closing. 
  
 (g) Operating Expenses. Personal property taxes, installment payments of special assessment liens, vault charges, sewer charges, utility charges, and normally prorated operating expenses actually paid or payable as of the Closing
Date shall be prorated as of the Closing Date and adjusted against the Purchase Price, provided that within ninety (90) days after the Closing, Purchaser and Seller will make a further adjustment for such taxes, charges and expenses which may have
accrued or been incurred prior to the Closing Date, but not collected or paid at that date. In addition, within ninety (90) days after the close of the fiscal year(s) used in calculating the pass-through to tenants of operating expenses and/or
common area maintenance costs under the Leases (where such fiscal year(s) include(s) the Closing Date), Purchaser shall prepare a reconciliation of all such operating expenses and/or common area maintenance costs and shall re-prorate on a fair and
equitable basis in order to adjust for the effect of any credits or payments due to or from tenants for periods prior to the Closing Date. All prorations shall be made based on the number of calendar days in such year or month, as the case may be.
The provisions of this Section 5.4(g) shall survive the Closing. 
  
 (h) CAM, Trash and Sprinklers. Purchaser and Seller recognize and agree that Seller has computed the CAM reconciliation for trash removal and sprinkler costs for Great Clips, Movie Gallery and Lee’s Chinese Restaurant using the
entire square footage of the Shopping Center. Seller agrees to indemnify and hold Purchaser harmless from and against any costs, claims or expenses suffered or incurred by Seller as a result of Seller’s CAM reconciliation during the term of
Seller’s ownership of the Property with respect to trash removal and sprinkler costs for such tenants for a period of two (2) years from and after the Closing Date. 
  
 ARTICLE 6 
 CONDITIONS TO CLOSING 
  
 6.1 Conditions
Precedent to Purchaser’s Obligations. The obligations of Purchaser hereunder to consummate the transaction contemplated hereunder shall in all respects be conditioned upon the satisfaction of each of the following conditions prior to or
simultaneously with the Closing, any of which may be waived by Purchaser in its sole discretion by written notice to Seller at or prior to the Closing Date: 
  
 (a) Seller shall have delivered to Purchaser all of the items required to be delivered to Purchaser pursuant to the terms of this Agreement, including,
but not limited to Section 5.1 hereof; 
  

 25 

 (b) Seller shall have performed, in all material respects, all covenants, agreements and undertakings of
Seller contained in this Agreement; 
  
 (c) All representations
and warranties of Seller as set forth in this Agreement shall be true and correct in all material respects as of the date of this Agreement and as of Closing, provided that solely for purposes of this subparagraph such warranties and representations
shall be deemed to be given without being limited to Seller’s knowledge and without modification (by update or otherwise, as provided in Section 5.1(i) hereof); 
  
 (d) Tenant Estoppel Certificates from (i) Harris Teeter, (ii) any tenants under recorded leases and (iii) other tenants such
that Seller shall have delivered in the aggregate Tenant Estoppel Certificates for tenants occupying not less than seventy percent (70%) of the aggregate leased square footage of all of the Improvements located on the Property, shall have been
delivered to Purchaser, with each such estoppel certificate (i) to be substantially in the form attached hereto as EXHIBIT “I” (or if the applicable Lease provides for a particular form of estoppel certificate to be
given by the tenant thereunder, the Tenant Estoppel Certificate with respect to such Lease may be in the form as called for therein), (ii) to be dated within sixty (60) days prior to the Closing Date, (iii) to confirm the material terms of the
applicable Lease, as contained in the copies of the Leases obtained by or delivered to Purchaser, and (iv) to confirm the absence of any material defaults under the applicable Lease as of the date thereof. The delivery of said Tenant Estoppel
Certificates shall be a condition of Closing, and the failure or inability of Seller to obtain and deliver said Tenant Estoppel Certificates, Seller having used its good faith efforts to obtain the same, shall not constitute a default by Seller
under this Agreement. Notwithstanding anything to the contrary contained herein, if Seller has been unable to obtain and deliver to Purchaser by Closing the applicable percentage of Tenant Estoppel Certificates meeting the requirements set forth
above, then, at the option of Seller, this condition to Closing may be satisfied by Seller’s execution and delivery to Purchaser at Closing, on behalf of any one or more tenants which have failed to provide the required Tenant Estoppel
Certificate an estoppel certificate substantially in the form attached hereto as SCHEDULE 11 (“Seller’s Estoppel”) (provided that Seller’s Estoppels cannot be delivered with respect to tenants
occupying more than twenty-five percent (25%) of the aggregate net rentable square footage of all of the Improvements); and provided that Seller’s liability under any such Seller’s Estoppel so executed and delivered by Seller to Purchaser
at Closing shall cease and terminate upon the receipt by Purchaser after Closing of a duly executed Tenant Estoppel Certificate from the tenant under the applicable Lease covered in such Seller’s Estoppel. 
  
 In the event any of the conditions in this Section 6.1 have not been satisfied (or otherwise
waived in writing by Purchaser) prior to or on the Closing Date (as same may be extended or postponed as provided in this Agreement), Purchaser shall have the right to terminate this Agreement by written notice to Seller given prior to the Closing,
whereupon (i) Escrow Agent shall return the Earnest Money to Purchaser; and (ii) except for those provisions of this Agreement which by their express terms survive the termination of this Agreement, no party hereto shall have any other or further
rights or obligations under this Agreement. 
  
 6.2
Conditions Precedent to Seller’s Obligations. The obligations of Seller hereunder to consummate the transaction contemplated hereunder shall in all respects be 
  

 26 

 conditioned upon the satisfaction of each of the following conditions prior to or simultaneously with the Closing, any of
which may be waived by Seller in its sole discretion by written notice to Purchaser at or prior to the Closing Date: 
  
 (a) Purchaser shall have paid and Seller shall have received the Purchase Price, as adjusted pursuant to the terms and conditions of this Agreement, which
Purchase Price shall be payable in the amount and in the manner provided for in this Agreement; 
  
 (b) Purchaser shall have delivered to Seller all of the items required to be delivered to Seller pursuant to the terms of this Agreement, including, but
not limited to Section 5.2 hereof; 
  
 (c) Purchaser shall have
performed, in all material respects, all covenants, agreements and undertakings of Purchaser contained in this Agreement; and 
  
 (d) All representations and warranties of Purchaser as set forth in this Agreement shall be true and correct in all material respects as of the date of
this Agreement and as of Closing, provided that solely for purposes of this subparagraph such warranties and representations shall be deemed to be given without being limited to Purchaser’s knowledge and without modification (by update or
otherwise, as provided in Section 5.2(d) hereof). 
  
 ARTICLE 7

 CASUALTY AND CONDEMNATION 
  
 7.1 Casualty. Risk of loss up to and including the Closing Date shall be borne by Seller. In the event of any immaterial damage or
destruction to the Property or any portion thereof, Seller and Purchaser shall proceed to close under this Agreement, and Purchaser will receive (and Seller will assign to Purchaser at the Closing Seller’s rights under insurance policies to
receive) any insurance proceeds (including any rent loss insurance applicable to any period on and after the Closing Date) due Seller as a result of such damage or destruction and assume responsibility for such repair, and Purchaser shall receive a
credit at Closing for any deductible, uninsured or coinsured amount under said insurance policies. For purposes of this Agreement, the term “immaterial damage or destruction” shall mean such instances of damage or destruction: (i) which
can be repaired or restored at a cost of FIVE HUNDRED THOUSAND and NO/100 DOLLARS ($500,000 U.S.) or less; (ii) which can be restored and repaired within ninety (90) days from the date of such damage or destruction; and (iii) in which Seller’s
rights under its rent loss insurance policy covering the Property are assignable to Purchaser and will continue pending restoration and repair of the damage or destruction. 
  
 In the event of any material damage or destruction to the Property or any portion thereof, Purchaser may, at its option, by
notice to Seller given within the earlier of twenty (20) days after Purchaser is notified by Seller of such damage or destruction, or the Closing Date, but in no event less than ten (10) days after Purchaser is notified by Seller of such damage or
destruction (and if necessary the Closing Date shall be extended to give Purchaser the full 10-day period to make such election): (i) terminate this Agreement, whereupon Escrow Agent shall immediately return the Earnest Money to Purchaser, or (ii)
proceed to close under this Agreement, receive (and Seller will assign to Purchaser at the Closing Seller’s rights under insurance policies to 
  

 27 

 receive) any insurance proceeds (including any rent loss insurance applicable to the period on or after the Closing Date)
due Seller as a result of such damage or destruction (less any amounts reasonably expended for restoration or collection of proceeds) and assume responsibility for such repair, and Purchaser shall receive a credit at Closing for any deductible
amount under said insurance policies. If Purchaser fails to deliver to Seller notice of its election within the period set forth above, Purchaser will conclusively be deemed to have elected to proceed with the Closing as provided in clause (ii) of
the preceding sentence. If Purchaser elects clause (ii) above, Seller will cooperate with Purchaser after the Closing to assist Purchaser in obtaining the insurance proceeds from Seller’s insurers. For purposes of this Agreement
“material damage or destruction” shall mean all instances of damage or destruction that are not immaterial, as defined herein. 
  
 7.2 Condemnation. If, prior to the Closing, all or any part of the Property is subjected to a bona fide threat of condemnation by a body
having the power of eminent domain or is taken by eminent domain or condemnation except as set forth on EXHIBIT “E” hereof, (or sale in lieu thereof), or if Seller has received written notice that any condemnation
action or proceeding with respect to the Property is contemplated by a body having the power of eminent domain, Seller shall give Purchaser immediate written notice of such threatened or contemplated condemnation or of such taking or sale, and
Purchaser may by written notice to Seller given within thirty (30) days after the receipt of such notice from Seller, elect to cancel this Agreement. If Purchaser chooses to cancel this Agreement in accordance with this Section 7.2, then the Earnest
Money shall be returned immediately to Purchaser by Escrow Agent and the rights, duties, obligations, and liabilities of the parties hereunder shall immediately terminate and be of no further force and effect, except for those provisions of this
Agreement which by their express terms survive the termination of this Agreement. If Purchaser does not elect to cancel this Agreement in accordance herewith, this Agreement shall remain in full force and effect and the sale of the Property
contemplated by this Agreement, less any interest taken by eminent domain or condemnation, or sale in lieu thereof, shall be effected with no further adjustment and without reduction of the Purchase Price, and at the Closing, Seller shall assign,
transfer, and set over to Purchaser all of the right, title, and interest of Seller in and to any awards applicable to the Property that have been or that may thereafter be made for such taking. At such time as all or a part of the Property is
subjected to a bona fide threat of condemnation and Purchaser shall not have elected to terminate this Agreement as provided in this Section 7.2, and provided that the Inspection Period has expired, (i) Purchaser shall thereafter be permitted to
participate in the proceedings as if Purchaser were a party to the action, and (ii) Seller shall not settle or agree to any award or payment pursuant to condemnation, eminent domain, or sale in lieu thereof without obtaining Purchaser’s prior
written consent thereto in each case. 
  
 ARTICLE 8

 DEFAULT AND REMEDIES 
  
 8.1 Purchaser’s Default. If Purchaser fails to consummate this transaction for any reason other than Seller’s intentional
and willful default, failure of a condition to Purchaser’s obligation to close, or the exercise by Purchaser of an express right of termination granted herein, Seller shall be entitled, as its sole remedy hereunder, to terminate this Agreement
and to receive and retain the Earnest Money as full liquidated damages for such default of Purchaser, 
  

 28 

 the parties hereto acknowledging that it is impossible to estimate more precisely the damages which might be suffered by
Seller upon Purchaser’s default, and that said Earnest Money is a reasonable estimate of Seller’s probable loss in the event of default by Purchaser. Seller’s retention of said Earnest Money is intended not as a penalty, but as full
liquidated damages. The right to retain the Earnest Money as full liquidated damages is Seller’s sole and exclusive remedy in the event of default hereunder by Purchaser, and Seller hereby waives and releases any right to (and hereby covenants
that it shall not) sue the Purchaser: (a) for specific performance of this Agreement, or (b) to recover actual damages in excess of the Earnest Money. The foregoing liquidated damages provision shall not apply to or limit Purchaser’s
liability for Purchaser’s obligations under Sections 3.1(b), 3.1(c), 3.7 and 10.1 of this Agreement. Purchaser hereby waives and releases any right to (and hereby covenants that it shall not) sue Seller or seek or claim a refund of said Earnest
Money (or any part thereof) on the grounds it is unreasonable in amount and exceeds Seller’s actual damages or that its retention by Seller constitutes a penalty and not agreed upon and reasonable liquidated damages. 
  
 8.2 Seller’s Default. If Seller fails to perform any of
its obligations under this Agreement for any reason other than Purchaser’s default or the permitted termination of this Agreement by Seller or Purchaser as expressly provided herein, Purchaser shall be entitled, as its sole remedy, either (a)
to receive the return of the Earnest Money from Escrow Agent, which return shall operate to terminate this Agreement and release Seller from any and all liability hereunder, or (b) to enforce specific performance of Seller’s obligation to
execute and deliver the documents required to convey the Property to Purchaser in accordance with this Agreement; it being specifically understood and agreed that the remedy of specific performance shall not be available to enforce any other
obligation of Seller hereunder. Purchaser expressly waives its rights to seek damages in the event of Seller’s default hereunder. Purchaser shall be deemed to have elected to terminate this Agreement and to receive a return of the Earnest Money
from Escrow Agent if Purchaser fails to file suit for specific performance against Seller in a court having jurisdiction in the county and state in which the Property is located, on or before sixty (60) days following the date upon which the Closing
was to have occurred. 
  
 ARTICLE 9 
 ASSIGNMENT 
  
 Subject to the next following sentence, this Agreement and all rights and obligations hereunder shall not be assignable by any party without the written
consent of the other. Notwithstanding the foregoing to the contrary, this Agreement and Purchaser’s rights hereunder may be transferred and assigned to any entity controlled by Purchaser. Any assignee or transferee under any such assignment or
transfer by Purchaser as to which Seller’s written consent has been given or as to which Seller’s consent is not required hereunder shall expressly assume all of Purchaser’s duties, liabilities and obligations under this Agreement by
written instrument delivered to Seller as a condition to the effectiveness of such assignment or transfer. No assignment or transfer shall relieve the original Purchaser of any duties or obligations hereunder, and the written assignment and
assumption instrument shall expressly so provide. For purposes of this Section 9.1, the term “control” shall mean the ownership of an entity of which Purchaser is a manager or in which Purchaser has a 25% or greater interest in the profits
and losses of such entity. Subject to the foregoing, this Agreement shall be binding upon and 
  

 29 

 shall inure to the benefit of the parties hereto and their respective legal representatives, successors and permitted
assigns. This Agreement is not intended and shall not be construed to create any rights in or to be enforceable in any part by any other persons. 
  
 ARTICLE 10 
 BROKERAGE COMMISSIONS

  
 Upon the Closing, and only in the event the Closing
occurs, Seller shall pay a brokerage commission to Trammell Crow Company (“Broker”) pursuant to a separate agreement, Purchaser has not been represented by a broker or other intermediary. Broker has joined in the execution of this
Agreement for the purpose of acknowledging and agreeing that no real estate commission shall be earned by it or due it if the transaction contemplated herein does not close for any reason whatsoever. Broker acknowledges and agrees that it shall look
solely to Seller, and not to Purchaser, for the payment of such commission, and Broker hereby waives and releases any present or future claims against Purchaser for the payment of such commission. In addition, Broker (upon receipt of its brokerage
commission) agrees to execute and deliver to Seller and Purchaser at the Closing a release and waiver of any claim Broker may have against Purchaser or the Property. Broker shall and does hereby indemnify and hold Purchaser and Seller harmless from
and against any and all liability, loss, cost, damage, and expense, including reasonable attorneys’ fees actually incurred and costs of litigation, Purchaser or Seller shall ever suffer or incur because of any claim by any agent, salesman, or
broker, whether or not meritorious, for any fee, commission or other compensation with regard to this Agreement or the sale and purchase of the Property contemplated hereby, and arising out of any acts or agreements of Broker. Seller shall and does
hereby indemnify and hold Purchaser harmless from and against any and all liability, loss, cost, damage, and expense, including reasonable attorneys’ fees actually incurred and costs of litigation, Purchaser shall ever suffer or incur because
of any claim by any agent, salesman, or broker, whether or not meritorious, for any fee, commission or other compensation with regard to this Agreement or the sale and purchase of the Property contemplated hereby, and arising out of any acts or
agreements of Seller, including any claim asserted by Broker. Likewise, Purchaser shall and does hereby indemnify and hold Seller free and harmless from and against any and all liability, loss, cost, damage, and expense, including reasonable
attorneys’ fees actually incurred and costs of litigation, Seller shall ever suffer or incur because of any claim by any agent, salesman, or broker, whether or not meritorious, for any fee, commission or other compensation with respect to this
Agreement or the sale and purchase of the Property contemplated hereby and arising out of the acts or agreements of Purchaser, including any claim asserted by Broker. This Section 10.1 shall survive the Closing or any earlier termination of this
Agreement. 
  
 ARTICLE 11 
 MISCELLANEOUS 
  
 11.1 Notices. Wherever any notice or other communication is required or permitted hereunder, such notice or other communication shall be in
writing and shall be delivered by overnight courier, hand, facsimile transmission, or sent by U.S. registered or certified mail, return receipt requested, postage prepaid, to the addresses or facsimile numbers set out below or at such other
addresses as are specified by written notice delivered in accordance herewith: 
  

 30 

			
	 PURCHASER:
	  	4530 Park Road
	 	  	Suite 300
	 	  	Charlotte, North Carolina 28209
	 	  	Attention: Daniel L. Leatherwood
	 	  	Facsimile: (704) 525-8700
		
	 with a copy to:
	  	Moore & Van Allen, PLLC
	 	  	100 N. Tryon Street
	 	  	Suite 4700
	 	  	Charlotte, North Carolina 28202-4003
	 	  	Attention: B. Palmer McArthur, Jr., Esq.
	 	  	Facsimile: (704) 339-5845
		
	 SELLER:
	  	c/o Wells Capital, Inc.
	 	  	6200 The Corners Parkway
	 	  	Suite 250
	 	  	Norcross, Georgia 30092
	 	  	Attention: F. Parker Hudson
	 	  	Facsimile: (770) 243-8510
		
	 with a copy to:
	  	McGuireWoods LLP
	 	  	1170 Peachtree Street, N.E.
	 	  	Suite 2100
	 	  	Atlanta, Georgia 30309
	 	  	Attn: John T. Grieb, Esq.
	 	  	Facsimile: (404) 443-5762

  
 Any notice or other communication (i)
mailed as hereinabove provided shall be deemed effectively given or received on the third (3rd) business day following the postmark date of such notice or other communication, (ii) sent by overnight courier or by hand shall be deemed effectively
given or received upon receipt, and (iii) sent by facsimile transmission shall be deemed effectively given or received on the first Business Day after the day of transmission of such notice and confirmation of such transmission. 
  
 11.2 Possession. Full and exclusive possession of the Property,
subject to the Permitted Exceptions and the rights of the tenants under the Leases, shall be delivered by Seller to Purchaser on the Closing Date. 
  
 11.3 Time Periods. If the time period by which any right, option, or election provided under this Agreement must be exercised, or by which
any act required hereunder must be performed, or by which the Closing must be held, expires on a Saturday, Sunday, or holiday, then such time period shall be automatically extended through the close of business on the next regularly scheduled
Business Day. 
  
 11.4 Publicity. The parties agree
that, prior to Closing, no party shall, with respect to this Agreement and the transactions contemplated hereby, contact or conduct negotiations with public officials, make any public announcements or issue press releases regarding this 

 

 31 

 Agreement or the transactions contemplated hereby to any third party without the prior written consent of the other party
hereto. Seller and Purchaser shall each have the right to approve the press release of the other party issued in connection with the Closing, which approval shall not be unreasonably withheld. No party shall record this Agreement or any notice
hereof. 
  
 11.5 Discharge of Obligations. The
acceptance by Purchaser of Seller’s Warranty Deed hereunder shall be deemed to constitute the full performance and discharge of each and every warranty and representation made by Seller and Purchaser herein and every agreement and obligation on
the part of Seller and Purchaser to be performed pursuant to the terms of this Agreement, except those warranties, representations, covenants and agreements which are specifically provided in this Agreement to survive Closing. 
  
 11.6 Severability. This Agreement is intended to be performed
in accordance with, and only to the extent permitted by, all applicable laws, ordinances, rules and regulations. If any provision of this Agreement, or the application thereof to any person or circumstance, shall, for any reason and to any extent be
invalid or unenforceable, the remainder of this Agreement and the application of such provision to other persons or circumstances shall not be affected thereby but rather shall be enforced to the greatest extent permitted by law. 
  
 11.7 Construction. This Agreement shall not be construed more
strictly against one party than against the other merely by virtue of the fact that this Agreement may have been prepared by counsel for one of the parties, it being mutually acknowledged and agreed that Seller and Purchaser and their respective
counsel have contributed substantially and materially to the preparation and negotiation of this Agreement. Accordingly, 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. 
  
 11.8 Sale Notification Letters. Promptly following the Closing, Purchaser shall deliver the Tenant Notices of Sale to each of the respective tenants under the Leases and the Other Notices of Sale to each
service provider and leasing agent, the obligations under whose respective Operating Agreements and Commission Agreements Purchaser has assumed at Closing. The provisions of this Section shall survive the Closing. 
  
 11.9 Access to Records Following Closing. Purchaser agrees that
for a period of two (2) years following the Closing, Seller shall have the right during regular business hours, on five (5) days’ written notice to Purchaser, to examine and review at Purchaser’s office (or, at Purchaser’s election,
at the Property), the books and records relating to the ownership and operation of the Property which were delivered by Seller to Purchaser at the Closing. Likewise, Seller agrees that for a period of two (2) years following the Closing, Purchaser
shall have the right during regular business hours, on five (5) days’ written notice to Seller, to examine and review at Seller’s office, all books, records and files, if any, retained by Seller relating to the ownership and operation of
the Property by Seller prior to the Closing. The provisions of this Section shall survive the Closing. 
  
 11.10 Survival. The provisions of this Article 11 and the provisions of Sections 3.1(b), 3.1(c), 3.3, 3.7, 4.1, 4.2, 4.4, 5.1, 5.2, 5.4,
6.1(d) and 10.1 shall survive the Closing to the extent (and subject to any specific limitations) provided in this Agreement and any earlier termination of this Agreement and shall not be merged into the execution and delivery of the Warranty Deed.

  

 32 

 11.11 General Provisions. No failure of either party to exercise any power given hereunder
or to insist upon strict compliance with any obligation specified herein, and no custom or practice at variance with the terms hereof, shall constitute a waiver of either party’s right to demand exact compliance with the terms hereof. This
Agreement contains the entire agreement of the parties hereto, and no representations, inducements, promises, or agreements, oral or otherwise, between the parties not embodied herein shall be of any force or effect. Any amendment to this Agreement
shall not be binding upon Seller or Purchaser unless such amendment is in writing and executed by both Seller and Purchaser. Subject to the provisions of Section 9.1 hereof, the provisions of this Agreement shall inure to the benefit of and be
binding upon the parties hereto and their respective heirs, legal representatives, successors, and permitted assigns. Time is of the essence in this Agreement. The headings inserted at the beginning of each paragraph are for convenience only, and do
not add to or subtract from the meaning of the contents of each paragraph. This Agreement shall be construed and interpreted under the laws of the State of North Carolina. Except as otherwise provided herein, all rights, powers, and privileges
conferred hereunder upon the parties shall be cumulative but not restrictive to those given by law. All personal pronouns used in this Agreement, whether used in the masculine, feminine, or neuter gender shall include all genders, and all references
herein to the singular shall include the plural and vice versa. 
  
 11.12 Attorney’s Fees. If Purchaser or Seller brings an action at law or equity against the other in order to enforce the provisions of this Agreement or as a result of an alleged default under this Agreement, the
prevailing party in such action shall be entitled to recover court costs and reasonable attorney’s fees actually incurred from the other. 
  
 11.13 Counterparts. This Agreement may be executed in one or more counterparts, each of which when taken together shall constitute one and
the same original. To facilitate the execution and delivery of this Agreement, the parties may execute and exchange counterparts of the signature pages by facsimile, and the signature page of either party to any counterpart may be appended to any
other counterpart. 
  
 [Signatures begin on next page] 

 

 33 

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

			
	SELLER:
	
	 FUND VI, FUND VII AND FUND VIII
 ASSOCIATES, a Georgia general partnership

	
	 By:   WELLS REAL ESTATE FUND VI, L.P., a Georgia limited partnership, its general partner

	
	 By:   Wells Capital, Inc., a Georgia corporation, its general partner

	
	 By:

	 Print Name:
	 	  

	 Title:

	
	PURCHASER
	
	TANGLEWOOD INVESTORS, LLC, a North Carolina limited liability company

			
		
	 By:
	 	  

	 Print Name: Daniel L. Leatherwood

	 Title: Manager

  
 [Signatures
continued on following page] 
  

 34 

 IN WITNESS WHEREOF, the undersigned Brokers have joined in the execution and delivery hereof solely for
the purpose of evidencing its rights and obligations under the provisions of Article 1D hereof. 
  

					
	 	 	BROKER:
		
	 	 	TRAMMELL CROW COMPANY
			
	 Date of Execution:
	 	 	 	 
	 	 	By:	 	  

					
	 	 	Name:	 	  

					
	                     ,
2005
	 	Title:	 	  

  

 35First Amendment to Purchase and Sale Agreement

 Exhibit 10.2 
  
 PURCHASE AND SALE AGREEMENT 
  

TANGLEWOOD COMMONS SHOPPING CENTER 
  
 THIS FIRST AMENDMENT TO PURCHASE AND SALE AGREEMENT (the “First Amendment”), made and entered into this 7th day of April, 2005, by and between FUND
VI, FUND VII and FUND VIII ASSOCIATES, a Georgia general partnership (“Seller”) and TANGLEWOOD INVESTORS, LLC, a North Carolina limited liability company (“Purchaser”). 
  
 WITNESSETH: 
  
 WHEREAS, the Seller and Purchaser have entered into that certain Purchase and Sale Agreement dated March 24, 2005, as it may now or hereafter be properly amended (the “Agreement”); and 
  
 WHEREAS, the parties hereto desire to amend the Agreement as hereinafter set
forth. 
  
 NOW, THEREFORE, for and in consideration of the
foregoing premises, the mutual covenants and agreements set forth herein, and other good and valuable consideration, all of which each party respectively agrees constitutes sufficient consideration received at or before the execution hereof, the
parties hereto do hereby agree as follows: 
  
 1. Ratification
of the Purchase Agreement. Except as specifically amended hereby, the Agreement shall continue in full force and effect according to its terms. The parties hereto, by their execution hereof, do hereby ratify, affirm and agree to continue to be
bound by the Agreement, as amended, nothing herein being deemed a waiver of strict compliance with the terms thereof. 
  
 2. Prudential Lease Amendment. Seller and Purchaser recognize and agree that the Inspection Period shall expire on April 7, 2006. Purchaser has
completed its inspection of the Property, is satisfied with the results thereof and shall deposit the Additional Earnest Money with Escrow Agent on or before April 6, 2006. Notwithstanding the foregoing, Seller shall deliver to Purchaser, on or
before April 11, 2006 (the “Lease Amendment Date”), (a) a fully executed First Amendment to Lease between Preferred Carolinas Realty, Inc. d/b/a/ Prudential Carolinas Realty (“Prudential”) and Seller, providing for the renewal of
Prudential’s existing lease and the expansion into the 1,400 square feet located adjacent to Prudential’s existing suite at a rental rate of $17.00 per square foot for such expansion space (the “Prudential Lease Amendment”), and
(b) a fully executed First Amendment to Lease between Wilson Communications (“WC”) and Seller, providing for the relocation of WC’s existing space to the approximately 1,050 square foot space previously occupied by Merle Norman at a
rental rate of $17.50 per square foot (the “WC Lease Amendment”). In the event Seller is not able to provide Purchaser both a fully executed Prudential Lease Amendment and a fully executed WC Lease Amendment, on or before 

 the Lease Amendment Date, Purchaser may terminate the Agreement by providing Seller with written notification of such
election. If Purchaser so elects to terminate the Agreement pursuant to this First Amendment, Escrow Agent shall pay the Earnest Money to Purchaser, whereupon, except for those provisions of the Agreement which by their express terms survive the
termination of the Agreement, no party hereto shall have any other or further rights or obligations under the Agreement. 
  
 3. Consent Judgment. Seller and Purchaser recognize and agree that the Property is restricted by a Consent Judgment recorded in Book 1810, Page
3253, Forsyth County Registry (the “Consent Judgment”). The Consent Judgment limits the amount of impervious surface that can be development on the Property to eighty-five percent (85%) of the tract subject to the Consent Judgment. It is
the intent of Seller and Purchaser that future development of the Property and the Seller Retained Parcels (as hereinafter defined) be restricted such that each parcel of land within the Tanglewood Commons Shopping Center complies with the Consent
Judgment. Purchaser agrees to comply with the Consent Judgment and to restrict the future development and expansion of the Property so that in the aggregate no more than eighty five percent (85%) of the Property is developed with impervious surface.
In no event shall any vacant land retained by Seller and located adjacent to the Property (each a “Seller Retained Parcel” and collectively the “Seller Retained Parcels”) be used to calculate the percentage of impervious surface
developed on any parcel within the Property. Seller agrees to comply with the Consent Judgment and to restrict the future development of the Seller’s Retained Parcels so that no more than eighty five percent (85%) of each Seller’s Retained
Parcel is developed with impervious surface. The terms of this Section 4 shall survive the Closing and the restrictions shall be included in the Warranty Deed delivered to Purchaser at Closing. 
  
 4. Counterpart Execution. This First Amendment may be executed in one
or more counterparts, each of which shall be deemed an original, but all of which shall constitute one instrument. Further, a facsimile signature of either party on any counterpart may be relied upon as an original signature. 
  
 IN WITNESS WHEREOF, the parties hereto have duly signed, sealed and delivered
this First Amendment effective on the day and year first above written. 
  
 [SIGNATURES APPEAR ON THE FOLLOWING PAGE] 
  

 2 

			
	SELLER:
	
	 FUND VI, FUND VII AND FUND VIII
 ASSOCIATES, a Georgia general partnership

	
	 By:   WELLS REAL ESTATE FUND VI, L.P., a Georgia limited partnership, its general partner

	
	 By:   Wells Capital, Inc., a Georgia corporation, its general partner

	
	 By:

	 Print Name:

	 Title:

	
	PURCHASER
	
	 TANGLEWOOD INVESTORS, LLC, a
 North
Carolina limited liability company

	
	 By:   Purser Tanglewood LLC, a North Carolina limited liability company, its manager

	
	 By:

	 Print Name: Daniel L. Leatherwood

	 Title: Manager

  

 3

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