Document:

Exhibit 10.1

AGREEMENT OF PURCHASE AND
SALE

 

THIS AGREEMENT OF
PURCHASE AND SALE (this “Agreement”) is
made and entered into as of this 26th day of June, 2006 (the “Contract
Date”) by and between FIRST INDUSTRIAL
DEVELOPMENT SERVICES, INC., a Maryland corporation (“Seller”), and SIMPSON MANUFACTURING CO., INC., a Delaware corporation (“Purchaser”).

1.             SALE.

Seller agrees to sell
and convey to Purchaser, and Purchaser agrees to purchase from Seller, for the
purchase price set forth below and on the terms and conditions set forth in
this Agreement, all of the following:

(a)           that certain tract or parcel of land
comprised of approximately 19.46 acres, together with all rights, easements and
interests appurtenant thereto including, but not limited to, any streets or
other public ways adjacent to said tract or parcel and any water or mineral
rights owned by, or leased to, Seller, which is described on Exhibit A attached hereto and
made a part hereof (the “Land”);

(b)           all of the buildings, structures,
fixtures and other improvements located on the Land, including, but not limited
to the building commonly known as 375 Belvedere Drive, Gallatin, Tennessee
comprised of approximately 194,113 square feet (the “Building”),
and all other on-site structures, systems, and utilities associated with the
building (all such improvements being referred to herein as the “Improvements”), but excluding improvements, if any, owned by
any tenant(s) located therein;

(c)           Seller’s right, title and interest in
all leases and other agreements to occupy all or any portion of any or all of
the Land and the Improvements that are in effect on the Contract Date or into
which Seller enters prior to Closing (as hereinafter defined) pursuant to the
terms of this Agreement (collectively, the “Leases”);

(d)           to the extent transferable, all of
Seller’s right, title and interest (if any) in and to all intangible assets of
any nature relating to any or all of the Land and the Improvements, including,
but not limited to, (i) all guaranties and warranties issued with respect
to the Improvements; (ii) all plans and specifications, drawings and
prints describing the Improvements; (iii) trademarks or trade names
associated with the Improvements; and (iv) all licenses, permits,
approvals, certificates of occupancy, dedications, subdivision maps and
entitlements now or hereafter issued, approved or granted by any governmental
authority in connection with the Land or the Improvements (collectively, the “Intangibles”).

The Land, the Improvements, the Leases and the
Intangibles are hereinafter referred to collectively as the “Property.”

2.             PURCHASE PRICE.

The total purchase price
to be paid to Seller by Purchaser for the Property shall be FIVE MILLION FIVE
HUNDRED THOUSAND AND NO/100 DOLLARS ($5,500,000.00) (the “Purchase
Price”), plus or minus prorations as hereinafter provided.

3.             CLOSING.

 

The purchase and sale
contemplated herein shall be consummated at a closing (“Closing”)
to take place by mail or at the offices of the Title Company (defined below). The
Closing shall occur on or before the date that is five (5) business days
after the Approval Date (the, “Closing Date”).

4.             DEPOSIT.

Simultaneously with the
execution and delivery of this Agreement by Purchaser and Seller, Purchaser
shall deposit, as its initial earnest money deposit, the sum of One Hundred
Thousand and No/100 Dollars ($100,000.00) (the “Initial
Earnest Money”) in an escrow with the
Title Company (the “Escrow”)
pursuant to escrow instructions in the form attached hereto as Exhibit B. Purchaser shall
deposit the sum of One Hundred Thousand and No/100 Dollars ($100,000.00) (the “Additional Earnest Money”) as its additional earnest money
in escrow with Title Company immediately upon the expiration of the Approval
Date (as defined in Section 6.1). The Initial Earnest Money, the
Additional Earnest Money and all interest earned thereon are herein
collectively referred to as the “Deposit.”  Except as otherwise expressly set forth
herein, the Deposit shall be applied against the Purchase Price at Closing.

5.             SELLER’S
DELIVERIES.

Prior to the execution
of this Agreement, Seller has, to Seller’s knowledge, delivered or made
available to Purchasers, or within five days after execution of this Agreement
Seller shall, to Seller’s knowledge, deliver or make available to Purchaser in
the Nashville office of First Industrial Realty Trust, Inc., a Maryland
corporation and an affiliate of Seller (“FR”), all of
the documents and agreements described on Exhibit C
attached hereto and made a part hereof that are in Seller’s possession (the “Documents”). From the date hereof until the Closing Date,
Seller shall continue to make available to Purchaser or its agents for
inspection in the Nashville office of FR, all, to Seller’s knowledge, of the
Documents in Seller’s possession. The Documents that are furnished or made
available to Purchaser pursuant to this Section 5
are being furnished or made available to Purchaser for information
purposes only and without any representation or warranty by Seller with respect
thereto, express or implied, except as may otherwise be expressly set forth in
this Section 5 or
Section 8.1
below, in either case as limited by Sections 8.2
and 8.3 below.

6.             INSPECTION
PERIOD.

6.1           Basic Project Inspection. At
all times prior to Closing, including times following the “Inspection Period”
(which Inspection Period is defined to be the period commencing on the Contract
Date and continuing through and including July 26, 2006), Purchaser and
Purchaser’s employees, third party consultants, lenders, engineers, accountants
and attorneys (collectively, the “Purchaser’s
Representatives”) shall be entitled to conduct a “Basic Project Inspection” of the Property, which will
include the rights to: (i) enter upon the Land and Improvements, at
reasonable times, to perform inspections and tests of the Land and the Improvements,
(ii) make investigations with regard to the environmental condition of the
Land and the Improvements and the compliance by the Land and the Improvements
with all applicable laws, ordinances, rules and regulations, (iii) review
the Leases affecting the Property, and (iv) interview any tenant at the
Improvements with respect to its current and prospective occupancy of the
Improvements as long 

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as a representative of Seller is in attendance
throughout such interview, which representatives shall be made reasonably
available for such purposes. Purchaser shall provide not less than two (2) business
days’ prior notice to Seller before conducting any investigations, study,
interview or test to or at the Land and the Improvements. If Purchaser
determines that the results of any inspection, test, examination or review do
not meet Purchaser’s criteria (which criteria may include the requirements of
Purchaser’s lenders and investors), in its sole discretion, for the purchase,
financing or operation of the Property in the manner contemplated by Purchaser,
then Purchaser may terminate this Agreement. This Agreement shall automatically
terminate unless Purchaser provides Seller with written notice waiving
Purchaser’s right to terminate this Agreement pursuant to this Section 6.1 prior to the of the Inspection Period (the “Approval Date”). If this Agreement terminates pursuant to
the foregoing provisions of this paragraph, then neither party shall have any
further liabilities or obligations hereunder, except for those liabilities and
obligations that expressly survive a termination of this Agreement and the
Deposit shall be returned to Purchaser.

6.2           Purchaser’s Undertaking. Purchaser
hereby covenants and agrees that it shall cause all studies, investigations and
inspections performed at the Land or the Improvements to be performed in a
manner that does not unreasonably disturb or disrupt the tenancies or business
operations of the tenant(s) at the Improvements. Purchaser shall not
conduct (or cause to be conducted) any physically intrusive investigation,
examination or study of the Land or the Improvements (any such investigation,
examination or study, an “Intrusive Investigation”)
as part of its Basic Project Inspection or otherwise without the prior written
consent of Seller, which consent shall not be unreasonably withheld. Purchaser
and Purchaser’s Representatives shall, in performing its Basic Project
Inspection, comply with any and all applicable laws, ordinances, rules, and
regulations. Except to the extent required by any applicable statute, law,
regulation or governmental authority in its capacity as a contract purchaser
(i.e. not an owner), neither Purchaser nor Purchaser’s Representatives shall
report the results of the Basic Project Inspection or any Intrusive
Investigation to any governmental or quasi-governmental authority under any
circumstances without obtaining Seller’s express written consent, which consent
may be withheld in Seller’s sole discretion. If this transaction fails to close
for any reason other than due to Seller’s default, Purchaser shall provide
Seller with copies of any and all final, third party reports prepared on behalf
of Purchaser as part of the Basic Project Inspection without any representation
or warranty regarding the accuracy thereof. Purchaser and Purchaser’s
Representatives shall: (a) maintain comprehensive general liability
(occurrence) insurance in an amount of not less than $2,000,000 covering any
accident arising in connection with the presence of Purchaser and Purchaser’s
Representatives at the Land and the Improvements while performing any
investigations, examinations or studies thereon, and shall deliver a
certificate of insurance (in form and substance reasonably satisfactory to
Seller), naming Seller as an additional insured thereunder, verifying the
existence of such coverage to Seller prior to entry upon the Land or the
Improvements; and (b) promptly pay when due any third party costs
associated with its Basic Project Inspection. Purchaser shall, at Purchaser’s
sole cost, repair any damage to the Land or the Improvements resulting from the
Basic Project Inspection or any Intrusive Investigation, and, to the extent
Purchaser or Purchaser’s Representatives alter, modify, disturb or change the
condition of the Land or the Improvements as part of the Basic Project
Inspection, any Intrusive investigation or otherwise, Purchaser shall, at
Purchaser’s sole cost, restore the Land and the Improvements to the condition
in which the same were found before such alteration, modification, disturbance
or change. Purchaser hereby indemnifies, protects, 

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defends and holds Seller, Seller’s affiliates, their
respective partners, shareholders, officers and directors, and all of their
respective successors and assigns (collectively, the “Seller
Indemnified Parties”) harmless from and against any and all losses,
damages, claims, causes of action, judgments, damages, costs and expenses
(including reasonable attorneys’ fees and court costs) (collectively, “Losses”) that Seller or any Seller Indemnified Party suffers
or incurs as a result of, or in connection with Purchaser’s Basic Project
Inspection, any Intrusive Investigation or Purchaser’s or Purchaser’s
Representatives entry upon the Land or the Improvements hereunder. Purchaser’s
undertakings pursuant to this Section 6.2
shall indefinitely survive a termination of this Agreement or the Closing and
shall not be merged into any instrument of conveyance delivered at Closing.

6.3           Confidentiality. Purchaser
agrees to use reasonable efforts to maintain in confidence the information and
terms contained in the Evaluation Materials (defined below) and this Agreement
(collectively, the “Transaction Information”).
Purchaser shall not disclose all or any portion of the Transaction Information
to any person or entity and shall maintain the Transaction Information in the
strictest confidence; provided, however, that Purchaser may disclose the
Transaction Information:  (a) to
Purchaser’s Representatives to the extent that Purchaser’s Representatives
reasonably need to know such Transaction Information in order to assist, and
perform services on behalf of, Purchaser; (b) on not less than two (2) business
days prior written notice, to the extent required by any applicable statute,
law, regulation or governmental authority; (c) in connection with any
litigation that may arise between the parties in connection with the
transactions contemplated by this Agreement; and (d) to the extent that
any Transaction Information is generally available to the public through other sources.
Purchaser shall advise Purchaser’s Representatives of the provisions of this Section 6.3 and cause such parties to maintain the
Transaction Information as confidential information and otherwise comply with
the terms of this Section 6.3.
For purposes of this Agreement, the term “Evaluation Materials”
shall mean the Documents and any other materials or information delivered or
made available by Seller or its agents to Purchaser or Purchaser’s
Representatives together with (i) all analyses, compilations, studies or
other documents prepared by (or on behalf of) Purchaser, which contain or
otherwise reflect such information or materials and (ii) the results of
any studies, analysis or investigation of the Property undertaken by or on
behalf of Purchaser. Purchaser agrees that the Evaluation Materials shall be
used solely for purposes of evaluating the acquisition and potential ownership
and operation of the Property. Notwithstanding anything contained herein to the
contrary, it is understood and agreed that money damages would not be a
sufficient remedy for any breach of this Section 6.3
by Purchaser or Purchaser’s Representatives and that Seller shall be entitled
to specific performance and injunctive or other equitable relief as a remedy
for any such breach of this Section 6.3
by Purchaser or Purchaser’s Representatives. Purchaser further agrees to waive
any requirement for the security or posting of any bond in connection with such
remedy. Such remedy shall not be deemed to be the exclusive remedy for breach
of this Section 6.3 but shall be in
addition to all other remedies available at law or in equity to Seller. In the
event this Agreement is terminated for any reason whatsoever, Purchaser shall
promptly (and in any event within three (3) business days after the
effective date of termination) return to Seller the Documents and any and all
copies of the Documents and destroy any and all other Evaluation Materials. The
undertakings of Purchaser pursuant to this Section 6.3
shall survive the termination of this Agreement.

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6.4           Seller’s Convenants. During
the Inspection Period and until the Closing Date, Seller shall, at no
additional third party cost or expense to Seller, reasonably cooperate with
Purchaser in Purchaser’s efforts to obtain any permits, approvals, reviews,
title insurance, or inspections by governmental agencies that Purchaser are
required to obtain during the Inspection Period and shall, as owner of the
Property, execute reasonable documents that are reasonably necessary to obtain
such matters.

7.             TITLE AND SURVEY
MATTERS.

7.1           Conveyance of Title. At
Closing, Seller agrees to deliver to Purchaser a special warranty deed (the “Deed”), in
recordable form, conveying the Land and the Improvements to Purchaser, free and
clear of all liens, claims and encumbrances except for the following items (the
“Permitted Exceptions”):  (1) taxes
not yet due and payable; (2) those matters that may be approved (or deemed
approved) by Purchaser pursuant to Section 7.4 or Section 10.1;
(3) the rights of tenants, as tenants only, pursuant to the Leases; (4) liens
and encumbrances arising out of any act of Purchaser or Purchaser’s
Representatives; and (5) local, state and federal laws, ordinances, rules and
regulations, including, but not limited to, zoning ordinances (those liens,
claims, encumbrances and matters referred to in items (1) and (4) above,
the “Existing Permitted Exceptions”).

7.2           Title Commitment. Within ten (10) days
after the Contract Date, Seller shall, at Seller’s sole cost, deliver to
Purchaser a commitment (the “Title Commitment”) issued by First American Title
Insurance Company, 30 N. LaSalle, Suite 310, Chicago, Illinois, 60603
Attn: Dick Seidel (the “Title Company”), for an owner’s title insurance policy
with respect to the Land, in the full amount of the Purchase Price, together
with copies of all recorded documents evidencing title exceptions raised in “Schedule
B” of such Title Commitment. The date on which Purchaser has received the Title
Commitment is referred to as the “Commitment Delivery Date.”  During the Inspection Period, Purchaser shall
negotiate an ALTA extended coverage proforma title insurance policy (including
such endorsements as may be required by Purchaser) with Title Company (the “Title Policy”). It shall be a condition precedent to
Purchaser’s obligation to proceed to Closing that, at Closing, the Title
Company shall issue the Title Policy (or have given Purchaser at Closing an
irrevocable and unconditional commitment in form reasonably satisfactory to
Purchaser to issue such Title Policy after Closing) insuring, in the full
amount of the Purchase Price, Purchaser as the fee simple owner of the Land and
the Improvements, subject only to the Permitted Exceptions. If the foregoing
condition precedent fails for any reason other than the actions or omissions of
Purchaser, Purchaser may elect to either (i) proceed to Closing and waive
the failure of such condition or (ii) terminate this Agreement by delivery
of written notice to Seller on or prior to Closing, in which event (i) the
Deposit shall be returned to Purchaser, and (ii) neither party shall have
any further liabilities or obligations hereunder except for those liabilities
and obligations that expressly survive a termination of this Agreement.

7.3           Survey. Seller has delivered
or made available to Purchaser a copy of an existing survey of the Land and the
Improvements (the “Survey”) together with the Documents. Purchaser may obtain,
at Purchaser’s cost, obtain an update of the Survey (an “Updated Survey”)
certified to Purchaser and its lenders.

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7.4           Defects and Cure.

7.4.1        Purchaser’s Defect Notices. Purchaser
shall accept title to the Land and the Improvements subject to all of the
Existing Permitted Exceptions. If the Updated Survey or the Title Commitment
discloses exceptions to title other than the Existing Permitted Exceptions
(such exceptions to title being referred to as the “Disclosed
Exceptions”), then Purchaser shall have until 5:00 p.m.
(Chicago time) on the date that is five (5) business days after the
Commitment Delivery Date, within which to notify Seller of any such Disclosed
Exceptions to which Purchaser reasonably objects (any such notice, a “Defect Notice”). Any exceptions to title (other than the
Existing Permitted Exceptions and the Disclosed Exceptions) that arise between
the effective date of the Title Commitment or the Updated Survey, as the case
may be, and the Closing are referred to herein as “New Defects.”  Purchaser shall have three (3) business
days after its receipt of written notice or updated title evidence reflecting
any New Defects within which to notify Seller in writing of any such New
Defects to which Purchaser objects. Those Disclosed Exceptions or New Defects,
as the case may be, to which Purchaser does not object in a Defect Notice given
within the applicable periods set forth above shall be deemed Permitted
Exceptions.

7.4.2        Seller’s Response Notices. Seller
shall be obligated to cure and remove (or procure title insurance over on terms
reasonably acceptable to Purchaser) all of the following classes of New Defects
and Disclosed Exceptions (“Mandatory Cure Items”), if any:  (i) the liens of any mortgage, trust
deed or deed of trust evidencing an indebtedness owed by Seller; (ii) tax
liens for delinquent ad valorem real estate taxes; (iii) mechanics liens
pursuant to a written agreement either between (x) the claimant (the “Contract Claimant”) and Seller or its employees, officers or
managing agents (the “Seller Parties”)
or (y) the Contract Claimant and any other contractor, materialman or
supplier with which Seller or the Seller Parties have a written agreement; and (iv) broker’s
liens pursuant to a written agreement between the broker and Seller or any
Seller Parties. Seller may elect, in its sole discretion, to cure and remove
any Disclosed Exception or New Defect (which are not Mandatory Cure Items)
identified by Purchaser in a Defect Notice by delivering written notice to
Purchaser (a “Seller’s Response Notice”) indicating that Seller has elected to
cure and remove any such matters (any such matters that Seller elects to cure
and remove, “Seller Cure Items”) not later than three (3) business days
after Seller’s receipt of the applicable Defect Notice (and, to the extent
Closing is scheduled to occur prior to such date, Closing shall be extended until
one (1) business day after the expiration of such period). Seller shall
have until Closing to cure and remove (or procure title insurance reasonably
acceptable to Purchaser over) any Seller Cure Items. If Seller fails to provide
a Seller’s Response Notice, Seller shall be deemed to have delivered a Seller’s
Response Notice electing not to cure and remove any New Defects or Disclosed
Exceptions (which are not Mandatory Cure Items) identified by Purchaser in the
applicable Defect Notice. If Seller elects (or is deemed to elect) not to cure
and remove any Disclosed Exceptions or New Defects, Purchaser may elect, in its
sole discretion and as its sole remedy hereunder, at law or in equity, by
delivery of written notice to Seller not later than three (3) business
days after Purchaser’s receipt (or deemed receipt) of a Seller’s Response
Notice (and, to the extent Closing is scheduled to occur prior to such date,
Closing shall be extended until one (1) business day after the expiration
of such period), to either (a) proceed to Closing and 

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accept title to the Land
and the Improvements, subject to those Disclosed Exceptions or New Defects, as
the case may be, that Seller has refused (or is deemed to have refused) to cure
or remove, without deduction or offset against the Purchase Price and with such
Disclosed Exceptions or New Defects in that case being deemed to be Permitted
Exceptions or (b) terminate this Agreement, in which event the Deposit
shall be returned to Purchaser and neither party shall have any further
liabilities or obligations pursuant to this Agreement except those liabilities
or obligations that expressly survive termination of this Agreement. If
Purchaser fails to timely notify Seller of its election pursuant to the
preceding sentence, Purchaser shall be deemed to have elected alternative (b).

7.5           Title Cure Provisions. If, on
or prior to Closing, Seller fails to cure and remove (or procure title
insurance over on terms reasonably acceptable to Purchaser) each Disclosed
Exception or New Defect (other than Mandatory Cure Items), as the case may be,
that Seller agreed to cure (pursuant to a Seller’s Response Notice) as Seller
Cure Items, Purchaser may, at its
option and as its sole remedy hereunder, at law or in equity, either (i) terminate
this Agreement by written notice to Seller delivered on or prior to Closing, in
which event (a) the Deposit shall be returned to Purchaser, and (b) this
Agreement, without further action of the parties, shall become null and void
and neither party shall have any further liabilities or obligations under this
Agreement except for those liabilities or obligations which expressly survive
termination of this Agreement; or (ii) elect to consummate the Closing and
accept title to the Land and Improvements subject to all those Disclosed
Exceptions or New Defects that Seller has failed to cure or remove (in which
event, all such exceptions to title shall be deemed Permitted Exceptions),
without deduction or offset against the Purchase Price or (iii) declare
Seller in Default (as hereinafter defined) hereunder and exercise its rights
pursuant to Section 17.1 hereof. If
Purchaser fails to make either such election, Purchaser shall be deemed to have
elected option (ii). If Seller fails to cure and remove (whether by endorsement
or otherwise) any Mandatory Cure Items on or prior to Closing, Purchaser may,
at its option and by delivery of written notice to Seller on or prior to
Closing, either (A) terminate this Agreement, in which event the Deposit
shall be returned to Purchaser and this Agreement, without further action of
the parties, shall become null and void and neither party shall have any
further liabilities or obligations under this Agreement except for those
liabilities and obligations which expressly survive a termination of this
Agreement, (B) proceed to close
with title to the Land and Improvements as it then is with the right to deduct
from the Purchase Price the liquidated amount reasonably necessary to cure and
remove (by endorsement or otherwise), as reasonably determined by Purchaser
those Mandatory Cure Items that Seller fails to cure and remove, or (C) declare
Seller in Default hereunder and exercise its rights pursuant to Section 17.1 hereof.

8.             SELLER’S
COVENANTS, REPRESENTATIONS AND WARRANTIES.

8.1           Seller’s Representations. Seller
represents and warrants to Purchaser that the following matters are true as of
the Contract Date, in all material respects, except as may otherwise be
expressly provided in the Documents.

8.1.1        Litigation. There is no pending
or, to Seller’s knowledge, threatened litigation or governmental proceedings
against Seller in connection with the Property that would materially and
adversely affect the Property.

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8.1.2        United States Person. Seller is a
“United States Person” within the meaning of Section 1445(f)(3) of
the Internal Revenue Code of 1986, as amended, and shall execute and deliver an
“Entity Transferor” certification at Closing.

8.1.3        Condemnation. There is no pending
or to Seller’s knowledge, contemplated condemnation or other governmental
taking proceedings affecting all or any part of the Land and the Improvements.

8.1.4        Environmental Matters. Seller has
received no written notification from any governmental authority that (x) all
or some portion of the Land and the Improvements violates any Environmental
Laws (as hereinafter defined); or (y) any Hazardous Substances have been
stored or generated at, released or discharged from or are present upon the
Land and the Improvements, except in the ordinary course of business and in
accordance with all Environmental Laws. As used herein, “Hazardous Substances”
means all hazardous or toxic materials, substances, pollutants, contaminants,
or wastes currently identified as a hazardous substance or waste in the
Comprehensive Environmental Response, Compensation and Liability Act of 1980
(commonly known as “CERCLA”), as amended, the Superfund Amendments and
Reauthorization Act (commonly known as “SARA”), the Resource Conservation and
Recovery Act (commonly known as “RCRA”), or any other federal, state or local
legislation or ordinances applicable to the Land or the Improvements. As used
herein, the term “Environmental Laws” shall mean all federal, state and local
environmental laws, rules, statutes, directives, binding written
interpretations, binding written policies, ordinances and regulations issued by
any governmental authority and in effect as of the date of this Agreement with
respect to or which otherwise pertain to or affect the Land or the
Improvements, or any portion thereof, the use, ownership, occupancy or
operation of the Land or the Improvements, or any portion thereof, or any owner
of the Land, and as same have been amended, modified or supplemented from time
to time prior to the date of this Agreement, including but not limited to CERCLA,
the Hazardous Substances Transportation Act (49 U.S.C. § 1802
et seq.), RCRA, the Water Pollution Control Act (33 U.S.C.
§ 1251 et seq.), the Safe Drinking Water Act (42 U.S.C.
§ 300f et seq.), the Clean Air Act (42 U.S.C. § 7401
et seq.), the Solid Waste Disposal Act (42 U.S.C. § 6901
et seq.), the Toxic Substances Control Act (15 U.S.C. § 2601
et seq.), the Emergency Planning and Community Right-to-Know Act of 1986
(42 U.S.C. § 11001 et seq.), the Radon and Indoor Air Quality
Research Act (42 U.S.C. § 7401 note, et seq.), SARA, comparable
state and local laws, and any and all rules and regulations which have
become effective prior to the date of this Agreement under any and all of the
aforementioned laws.

8.1.5        Due Authorization; Conflict. Seller
is a corporation, duly organized, validly existing and in good standing under
the laws of the State of Maryland, and is qualified to do business in and is in
good standing under the laws of the State of Tennessee. Seller has full power
to execute, deliver and carry out the terms and provisions of this Agreement
and each of the other agreements, instruments and documents herein required to
be made or delivered by Seller pursuant hereto, and has taken, or will take
prior to Closing, all necessary action to authorize the execution, delivery and
performance of this Agreement and such other agreements, instruments and
documents. The individuals executing this Agreement and all other agreements,
instruments and documents herein required to be 

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made or delivered by Seller
pursuant hereto on behalf of Seller are and shall be duly authorized to sign
the same on Seller’s behalf and to bind Seller thereto. The execution and
delivery of, and consummation of the transactions contemplated by, this
Agreement are not prohibited by, and will not conflict with, constitute grounds
for termination of, or result in the breach of, any of the agreements or
instruments to which Seller is now party or by which it is bound, or any order,
rule or regulation of any court or other governmental agency or official.

8.1.6        Enforceability. This Agreement
has been, and each and all of the other agreements, instruments and documents
herein required to be made by Seller pursuant hereto have been, or on the
Closing Date will have been, executed by or on behalf of Seller, and when so
executed, are and shall be legal, valid and binding obligations of Seller
enforceable against Seller in accordance with their respective terms, subject
to applicable bankruptcy, insolvency, reorganization, moratorium and other
similar laws affecting the rights of creditors generally and, as to
enforceability, the general principles of equity (regardless of whether
enforcement is sought in a proceeding in equity or at law).

8.1.7        Leases; Tenant Improvements. Copies
of all Leases in effect as of the Contract Date (the “Existing
Leases”), and all amendments thereto and guaranties thereof, if any,
have been furnished by Seller to Purchaser and the copies so provided are true
and complete. The Existing Leases have not been amended, modified or terminated
(except for any amendments delivered to Purchaser pursuant to the preceding
sentence). To Seller’s knowledge, the Existing Leases are presently in full
force and effect.

8.1.8        Contracts; Other Agreements. Seller
is not party to any service contracts, management contracts or other comparable
agreements that will be binding upon the Land and the Improvements after
Closing.

8.1.9        Bankruptcy Matters. Seller has
not made a general assignment for the benefit of creditors, filed any voluntary
petition in bankruptcy or suffered the filing of an involuntary petition by its
creditors, suffered the appointment of a receiver to take possession of
substantially all of its assets, suffered the attachment or other judicial
seizure of substantially all of its assets, admitted its inability to pay its
debts as they come due, or made an offer of settlement, extension or
composition to its creditors generally.

8.1.10      No Brokers. Seller has delivered or
made available as Documents true and complete copies of any and all listing
agreements, brokerage agreements, Leases or other comparable agreements
(collectively, “Brokerage Agreements”) into which Seller has entered in
connection with the Property, and pursuant to which a leasing commission or
finder’s fee may be payable subsequent to Closing.

8.1.11      Employees. Seller has no employees
at the Property.

8.1.12      Notices of Violations. Seller has
not received from any government or quasi-governmental authority requiring or
requesting Seller to correct any condition with respect to the Property which
has not been corrected or the performance of any work or alterations with
respect to the Property which has not been performed.

 9
 

 

8.1.13      Documents. Seller has delivered to
Purchaser all of the Documents in its possession or reasonable control and the
Documents are true, correct and complete copies of the Documents.

8.1.14      Personal Property. Seller owns no
personal property at the Property.

8.1.15      Patriot Act Compliance. Seller is
not acting, directly or indirectly for, or on behalf of, any person, group,
entity or nation named by any Executive Order (including the September 24,
2001, Executive Order Blocking Property and Prohibiting Transactions With
Persons Who Commit, Threaten to Commit, or Support Terrorism) or the United
States Treasury Department as a terrorist, “Specially Designated National and
Blocked Person,” or other banned or blocked person, entity, or nation pursuant
to any Law that is enforced or administered by the Office of Foreign Assets
Control, and is not engaging in this transaction, directly or indirectly, on
behalf of, or instigating or facilitating this transaction, directly or
indirectly, on behalf of, any such person, group, entity or nation.

8.1.16      1031 Exchange. Seller recognizes
and understands that this transaction may be part of a contemplated “like kind”
exchange for Purchaser under §1031 of the Internal Revenue Code (“Purchaser’s Exchange”). As such,
Seller agrees to reasonably cooperate with Purchaser in effectuating Purchaser’s
Exchange, which cooperation may include the execution of documents and the
taking of other reasonable action, as is necessary in the opinion of Purchaser,
to accomplish Purchaser’s Exchange; provided, however, that Seller shall not be
required to assume any additional expense or liability in connection with, or
as part of its cooperation with, Purchaser’s Exchange or to agree to any
extension of the Closing Date beyond the date specified in Section 3. The covenant
contained in this Section 8.1.12 shall survive the Closing
and shall not be merged into any instrument of conveyance delivered at Closing.

8.2           Seller’s Knowledge. All
references in this Agreement to “Seller’s knowledge,” “Seller’s actual
knowledge” or words of similar import shall refer only to the actual (as opposed
to deemed, imputed or constructive) knowledge of Steve Preston and Steve
Janowiak without inquiry and, notwithstanding any fact or circumstance to the
contrary, shall not be construed to refer to the knowledge of any other person
or entity. Seller represents and warrants to Purchaser that Steve Preston and
Steve Janowiak or those persons who are affiliated with Seller who are in a
position to have actual knowledge concerning the substantive matters set forth
in this Section 8.

8.3           Limitations. The representations
and warranties of Seller to Purchaser contained in Section 8.1
hereof, as modified by the Closing Date Certificate (as hereinafter
defined in Section 12.13) (the “Seller Representations”), shall survive the Closing Date and
the delivery of the Deed for a period of twelve (12) months. No claim for a
breach of any Seller Representation, or the failure or default of a covenant or
agreement of Seller that survives Closing, shall be actionable or payable
unless (a) the breach in question results from, or is based on, a
condition, state of facts or other matter which was not actually disclosed to,
or actually known by, Purchaser prior to Closing, (b) the valid claims for
all such breaches collectively aggregate more than Twenty-Five Thousand and No/100
Dollars ($25,000), in which event the full amount of such claims shall be
actionable, and (c) written notice containing a description of 

 10
 

 

the specific nature of such breach shall have been
delivered by Purchaser to Seller prior to the expiration of said twelve (12)
month survival period, and an action with respect to such breach(es) shall have
been commenced by Purchaser against Seller within eighteen (18) months after
Closing. Notwithstanding anything contained herein to the contrary, the maximum
amount that Purchaser shall be entitled to collect from Seller in connection
with all suits, litigation or administrative proceedings resulting from all
breaches by Seller of any Seller Representations or any covenants of Seller
(expressly excluding fraud of Seller) shall in no event exceed $200,000 in the
aggregate plus costs of collection, attorney fees, court costs and consultants.
Notwithstanding anything to the contrary contained herein, if Purchaser is
notified in any Document, or in writing by Seller, or otherwise obtains actual
(as opposed to deemed, imputed or constructive) knowledge, that any Seller
Representation made by Seller is not true or correct as of the Contract Date,
or that such Seller Representation is not true or correct on or before the Closing,
or is notified in any Document, or in writing by Seller, or otherwise obtains
actual (as opposed to deemed, imputed or constructive) knowledge that Seller
has failed to perform any covenant and agreement herein contained, and
Purchaser shall nevertheless acquire the Property notwithstanding such fact,
Purchaser shall not be entitled to commence any action after Closing to recover
damages from Seller due to such Seller Representation(s) failing to be
true or correct (and Purchaser shall not be entitled to rely on such Seller
Representation) or such covenant(s) and agreement(s) having failed to
be performed by Seller.

8.4           Representation Condition. It
shall be a condition precedent to Purchaser’s obligation to proceed to Closing
that all of the Seller Representations are true and correct in all material
respects as of the Closing Date (the “Representation Condition”). Notwithstanding
anything contained herein to the contrary, if any Seller Representation is
untrue or inaccurate in any material respect and Purchaser becomes aware of
such untruth or inaccuracy prior to Closing, Purchaser may elect, in its sole
discretion and as its sole remedy hereunder, at law or in equity, either to (i) terminate
this Agreement by delivery of written notice to Seller on or prior to Closing
(or the Approval Date to the extent Purchaser becomes aware of such untruth or
inaccuracy on or prior to the Approval Date), whereupon the Deposit shall be
promptly returned to Purchaser and neither party shall have any further
liability hereunder, except for those liabilities that expressly survive a
termination of this Agreement; or (ii) proceed to Closing and accept the
untruth or inaccuracy of such Seller Representation with no further right to
terminate the Agreement (or pursue any other right or remedy) on the basis of
the untruth or inaccuracy thereof.

9.             PURCHASER’S COVENANTS AND
REPRESENTATIONS.

Effective
as of the execution of this Agreement, Purchaser hereby covenants with Seller,
and represents and warrants to Seller, as follows:

9.1           1031 Exchange. Purchaser
recognizes and understands that this transaction may be part of a contemplated “like
kind” exchange for Seller under §1031 of the Internal Revenue Code (“Seller’s Exchange”). As such,
Purchaser agrees to cooperate with Seller in effectuating Seller’s Exchange,
which cooperation may include the execution of documents and the taking of
other reasonable action, as is necessary in the opinion of Seller, to
accomplish Seller’s Exchange; provided, however, that Purchaser shall not be
required to assume any additional expense or liability in connection with, or
as part of its cooperation with, Seller’s Exchange or to agree to 

 11
 

 

any extension of the Closing Date beyond the date
specified in Section 3. The covenant contained in this
Section 9.1
shall survive the Closing and shall not be merged into any instrument of
conveyance delivered at Closing.

9.2           Due Authorization. As of the
Contract Date, Purchaser is a Delaware corporation duly organized, validly
existing and in good standing under the laws of the State of Delaware.
Purchaser has full power to execute, deliver and carry out the terms and
provisions of this Agreement and each of the other agreements, instruments and
documents herein required to be made or delivered by Purchaser pursuant hereto,
and has taken all necessary action to authorize the execution, delivery and
performance of this Agreement and such other agreements, instruments and
documents. The individuals executing this Agreement and all other agreements,
instruments and documents herein required to be made or delivered by Purchaser
pursuant hereto on behalf of Purchaser are and shall be duly authorized to sign
the same on Purchaser’s behalf and to bind Purchaser thereto.

9.3           Enforceability. This Agreement
has been, and each and all of the other agreements, instruments and documents
herein required to be made by Purchaser pursuant hereto have been, or on the
Closing Date will have been, executed by Purchaser or on behalf of Purchaser,
and when so executed, are and shall be legal, valid, and binding obligations of
Purchaser enforceable against Purchaser in accordance with their respective
terms, subject to applicable bankruptcy, insolvency, reorganization,
moratorium, and other similar laws affecting the rights of creditors generally
and, as to enforceability, the general principles of equity (regardless of
whether enforcement is sought in a proceeding in equity or at law).

9.4           No Conflict. The execution and
delivery of, and consummation of the transactions contemplated by this
Agreement is not prohibited by, and will not conflict with, constitute grounds
for termination of, or result in the breach of any of the agreements or
instruments to which Purchaser is now party or by which it is bound, or any
order, rule or regulation of any court or other governmental agency or
official.

9.5           Bankruptcy Matters. Purchaser
has not made a general assignment for the benefit of creditors, filed any
voluntary petition in bankruptcy or suffered the filing of an involuntary
petition by its creditors, suffered the appointment of a receiver to take
possession of substantially all of its assets, suffered the attachment or other
judicial seizure of substantially all of its assets, admitted its inability to
pay its debts as they come due, or made an offer of settlement, extension or
composition to its creditors generally.

9.6           Patriot Act Compliance. Purchaser
is not acting, directly or indirectly for, or on behalf of, any person, group,
entity or nation named by any Executive Order (including the September 24,
2001, Executive Order Blocking Property and Prohibiting Transactions With
Persons Who Commit, Threaten to Commit, or Support Terrorism) or the United
States Treasury Department as a terrorist, “Specially Designated National and
Blocked Person,” or other banned or blocked person, entity, or nation pursuant
to any Law that is enforced or administered by the Office of Foreign Assets
Control, and is not engaging in this transaction, directly or indirectly, on
behalf of, or instigating or facilitating this transaction, directly or
indirectly, on behalf of, any such person, group, entity or nation.

 

 12

 

9.7           Limitations. The
representations and warranties of Purchaser to Seller contained herein shall
survive the Closing Date and the delivery of the Deed for a period of one year.

10.           ACTIONS AFTER THE CONTRACT DATE. The
parties covenant to do the following through the Closing Date:

10.1         Title. From and after the
Contract Date, Seller shall not make any change to the condition of title to
either or both of the Land and the Improvements that would change the condition
of title approved or deemed approved by Purchaser pursuant to Section 7.4,
except as required by law or by Section 7.4,
or with Purchaser’s advance
written consent, which consent may be withheld in Purchaser’s reasonable
discretion. From and after the Contract Date, and except with respect to normal
leasing activities at the Land and the Improvements (in accordance with Section 10.3
below), Seller shall not sell, or assign or create any right, title or interest
in, any or all of the Land, the Improvements and any part of either of them, or
create any lien, encumbrance or charge thereon, without the prior written
consent of Purchaser, which consent may be withheld in Purchaser’s reasonable
discretion.

10.2         Maintenance and Operation of
Property. From and after the Contract Date, Seller shall maintain the Land
and the Improvements in substantially its current condition (normal wear and
tear and damage by casualty excepted); shall maintain existing insurance
coverage in full force and effect; and shall operate and maintain the Land and
the Improvements in the ordinary course of Seller’s business; provided,
however, that in no event shall Seller be obligated to make any capital
repairs, replacements or improvements to the Improvements. From and after the
Contract Date, and except with respect to normal leasing activities at the Land
and the Improvements (in accordance with Section 10.3 below),
Seller shall not enter into any new contract or agreement with respect to the
ownership and operation of the Land and the Improvements that would be binding
on Purchaser or the Property after Closing, without Purchaser’s prior written
approval (which approval may be withheld in Purchaser’s reasonable discretion).

10.3         Leasing Activities. From and
after the Contract Date, Seller shall not execute and enter into any new lease,
license or occupancy agreement for all or some portion of the Land and the
Improvements, including, without limitation, any amendment, renewal, expansion
or modification to, or termination of, any Existing Lease (all of the
foregoing, a “New Lease”) unless  Seller
obtains Purchaser’s advance written consent to such New Lease, which consent
may be withheld in Purchaser’s sole discretion, but which consent shall be
deemed automatically denied if Purchaser fails to respond within five (5) business
days after Seller makes a written request for same provided that if Seller
provides a second notice and Purchaser does not respond within an additional
five (5) business days after such additional notice, such consent shall be
deemed automatically given. New Leases shall not include, and Seller shall be
free to execute and enter into at any time, any non-discretionary amendments,
modifications, renewals or expansions of any Existing Lease pursuant to the
requirements of such Existing Lease. Seller shall provide Purchaser with a
contemporaneous copy of all such non-discretionary amendments.

10.4         Leasing Expenses. “Lease
Expenses” shall mean, collectively, any and all commissions and fees or costs
and expenses arising out of or in connection with the leasing of the Property,
including, but not limited to, (i) any extension, renewal or expansion of
any 

 13
 

 

 

Existing Lease exercised between the Contract Date and
the Closing Date and (ii) any New Lease. Lease Expenses shall include,
without limitation, (a) brokerage commissions and fees to effect any such
leasing transaction, (b) expenses incurred for repairs, tenant
improvements and tenant incentives (including, but not limited to, free rent or
any reduction of current rent), (c) allowances for tenant improvements and
moving, and (d) reasonable legal fees for services in connection with the
preparation of documents and other services rendered in connection with the
effectuation of the leasing transaction. Lease Expenses for any Existing Leases
relating to the base lease term or any renewal term that is elected or with
respect to which an option is exercised, as the case may be, prior to the
Contract Date shall be paid in full at or prior to Closing by Seller, without
contribution or proration from Purchaser (“Seller’s Lease Expenses”). Notwithstanding
the foregoing, to the extent that any such Seller’s Lease Expenses have not
been paid in full by Seller prior to Closing, Purchaser may elect to assume
responsibility for such unpaid Seller’s Lease Expenses, and, upon such election,
shall receive a credit against the Purchase Price in the amount of such assumed
unpaid Seller’s Lease Expenses. Lease Expenses for (x) any renewals (other
than renewals with respect to which an option is exercised prior to the
Contract Date) or expansions of any Existing Lease (other than expansions
elected or with respect to which an option is exercised prior to the Contract
Date), and (y) any New Leases shall be the sole responsibility of
Purchaser, without contribution or proration from Seller (“Purchaser’s Lease
Expenses”). In the event Seller has paid any Purchaser’s Lease Expenses on or
prior to Closing (including, but not limited to, by way of tenant incentives in
the form of any reduction in rent that would otherwise have been payable with
respect to the period from the Contract Date through Closing), Purchaser shall
credit or reimburse Seller for such amounts at Closing. Seller hereby
indemnifies, protects, defends and holds Purchaser, and its successors and
assigns (the “Purchaser’s Indemnified Parties”), harmless from and against any
and all Losses that any or all of Purchaser and any Purchaser’s Indemnified
Parties actually suffer and incur as a result of the failure by Seller to
timely pay or discharge any of the Seller’s Lease Expenses. Purchaser hereby
indemnifies, protects, defends and holds Seller and the Seller Indemnified
Parties harmless from and against all Losses that any or all of Seller and the
Seller Indemnified Parties actually suffer or incur as a result of the failure
by Purchaser to timely pay or discharge any of the Purchaser’s Lease Expenses
or any New Lease Expenses (including, but not limited to, any amounts required
to be credited or reimbursed to Seller pursuant to the terms of this Section 10.4).
The terms of this Section 10.4 shall survive the Closing
and the delivery of any conveyance documentation.

10.5         Lease Enforcement. Prior to the
Approval Date, Seller shall have the right, but not the obligation, to enforce
the rights and remedies of the landlord under any Existing Lease or New Lease,
by summary proceedings or otherwise, and to apply all or any portion of any
security deposit then held by Seller toward any loss or damage incurred by
Seller by reason of any defaults by tenants, and the exercise of any such
rights or remedies shall not affect the obligations of Purchaser under this
Agreement in any manner. From and after the Approval Date, Seller shall obtain
Purchaser’s prior written consent, which shall not be unreasonably withheld,
conditioned or delayed, to such enforcement or application of security
deposits.

10.6         Estoppel Certificates. Seller
shall use reasonable and diligent efforts to obtain and deliver to Purchaser
estoppel certificates from each of the tenants of the Land and the
Improvements, which estoppel certificates shall be without material and adverse
modification to the form of estoppel certificate attached as Exhibit D
hereto or such form as may be required by 

 14
 

 

 

the applicable tenant’s Lease (each estoppel
certificate satisfying such criteria, a “Conforming Estoppel”) on or prior to
the Closing Date. It shall be a condition precedent to Purchaser’s obligation
to proceed to close hereunder that, on or prior to the Closing Date, Seller
delivers to Purchaser a Conforming Estoppel from all of the tenants of the Land
and the Improvements (the “Required Estoppel Amount”).
If Purchaser receives any estoppel certificate more than three (3) business
days prior to Approval Date and fails to notify Seller, in writing, that such
estoppel certificate does not constitute a Conforming Estoppel, Purchaser shall
be deemed to have accepted such estoppel certificate as a Conforming Estoppel
for all relevant purposes under this Agreement, irrespective of any
modifications made therein by the applicable tenant. If Purchaser does not
receive a sufficient number of Conforming Estoppels to satisfy the Required
Estoppel Amount, Purchaser may elect, as its sole and exclusive remedy
hereunder, by delivery of written notice to Seller on or prior to Closing,
either to (i) proceed to Closing and waive the condition precedent related
to the Required Estoppel Amount and the delivery of Conforming Estoppels; or (ii) terminate
this Agreement, whereupon the Deposit shall be returned to Purchaser and
neither party shall have any further liability or obligation hereunder, except
as otherwise expressly provided herein.

11.           PROPERTY SOLD “AS
IS”.

11.1         Except as is otherwise expressly
provided in this Agreement, Seller hereby specifically disclaims any warranty
(oral or written) concerning:  (i) the
nature and condition of the Property and the suitability thereof for any and
all activities and uses that Purchaser elects to conduct thereon; (ii) the
manner, construction, condition and state of repair or lack of repair of the
Improvements; (iii) the compliance of the Land and the Improvements or
their operation with any laws, rules, ordinances or regulations of any
government or other body; and (iv) any other matter whatsoever except as
expressly set forth in this Agreement. EXCEPT AS IS OTHERWISE EXPRESSLY
PROVIDED IN THIS AGREEMENT, THE SALE OF THE PROPERTY AS PROVIDED FOR HEREIN IS
MADE ON A STRICTLY “AS IS” “WHERE IS” BASIS AS OF THE CLOSING DATE, AND SELLER
MAKES NO WARRANTY OR REPRESENTATION, EXPRESS OR IMPLIED, OR ARISING BY
OPERATION OF LAW, INCLUDING, BUT IN NO WAY LIMITED TO, ANY WARRANTY OF
QUANTITY, QUALITY, CONDITION, HABITABILITY, MERCHANTABILITY, SUITABILITY OR
FITNESS FOR A PARTICULAR PURPOSE OF THE PROPERTY, ANY IMPROVEMENTS LOCATED
THEREON OR ANY SOIL CONDITIONS RELATED THERETO.

11.2         PURCHASER SPECIFICALLY ACKNOWLEDGES
THAT PURCHASER IS NOT RELYING ON (AND SELLER HEREBY DISCLAIMS AND
RENOUNCES) ANY REPRESENTATIONS OR WARRANTIES MADE BY OR ON BEHALF OF SELLER OF
ANY KIND OR NATURE WHATSOEVER, EXCEPT FOR THOSE PARTICULAR REPRESENTATIONS AND
WARRANTIES EXPRESSLY PROVIDED IN THIS AGREEMENT. FURTHER, PURCHASER, FOR
PURCHASER AND PURCHASER’S SUCCESSORS AND ASSIGNS, HEREBY RELEASES SELLER FROM,
AND WAIVES, ANY AND ALL CLAIMS AND LIABILITIES AGAINST SELLER FOR, RELATED TO,
OR IN CONNECTION WITH, ANY ENVIRONMENTAL OR PHYSICAL CONDITION AT THE PROPERTY
(OR THE PRESENCE OF ANY MATTER OR SUBSTANCE RELATING TO THE ENVIRONMENTAL
CONDITION OF THE PROPERTY), INCLUDING, BUT NOT LIMITED TO, CLAIMS AND/OR
LIABILITIES RELATING TO (IN ANY MANNER 

 15
 

 

 

WHATSOEVER) ANY HAZARDOUS, TOXIC OR DANGEROUS
MATERIALS OR SUBSTANCES LOCATED IN, AT, ABOUT OR UNDER THE PROPERTY, OR FOR ANY
AND ALL CLAIMS OR CAUSES OF ACTION (ACTUAL OR THREATENED) BASED UPON, IN
CONNECTION WITH, OR ARISING OUT OF, CERCLA, AS AMENDED BY SARA, AND AS MAY BE
FURTHER AMENDED FROM TIME TO TIME, RCRA, OR ANY OTHER CLAIM OR CAUSE OF ACTION
(INCLUDING ANY FEDERAL OR STATE BASED STATUTORY, REGULATORY OR COMMON LAW CAUSE
OF ACTION) RELATED TO ENVIRONMENTAL MATTERS OR LIABILITY WITH RESPECT TO, OR
AFFECTING, THE PROPERTY. PURCHASER REPRESENTS TO SELLER THAT PURCHASER HAS
CONDUCTED, OR WILL CONDUCT PRIOR TO CLOSING, SUCH INVESTIGATIONS OF THE
PROPERTY, INCLUDING BUT NOT LIMITED TO, THE PHYSICAL AND ENVIRONMENTAL
CONDITIONS THEREOF, AS PURCHASER DEEMS NECESSARY TO SATISFY ITSELF AS TO THE
CONDITION OF THE PROPERTY AND THE EXISTENCE OR NONEXISTENCE OF, OR CURATIVE
ACTION TO BE TAKEN WITH RESPECT TO, ANY HAZARDOUS OR TOXIC SUBSTANCES ON OR
DISCHARGED FROM THE LAND OR THE IMPROVEMENTS, AND WILL RELY SOLELY UPON SAME
AND NOT UPON ANY INFORMATION PROVIDED BY, OR ON BEHALF OF, SELLER, ITS AGENTS
AND EMPLOYEES WITH RESPECT THERETO, OTHER THAN SUCH REPRESENTATIONS AND
WARRANTIES OF SELLER AS ARE EXPRESSLY SET FORTH IN THIS AGREEMENT. UPON
CLOSING, PURCHASER SHALL ASSUME THE RISK THAT ADVERSE MATTERS, INCLUDING BUT
NOT LIMITED TO, CONSTRUCTION DEFECTS AND ADVERSE PHYSICAL AND ENVIRONMENTAL
CONDITIONS, MAY NOT HAVE BEEN REVEALED BY PURCHASER’S INVESTIGATIONS, AND
PURCHASER, UPON CLOSING, SHALL BE DEEMED TO HAVE WAIVED, RELINQUISHED AND
RELEASED SELLER FROM AND AGAINST ANY AND ALL CLAIMS, DEMANDS, CAUSES OF ACTION
(INCLUDING CAUSES OF ACTION IN TORT), LOSSES, DAMAGES, LIABILITIES, COSTS AND
EXPENSES (INCLUDING ATTORNEYS’ FEES AND COURT COSTS) OF ANY AND EVERY KIND OR
CHARACTER, KNOWN OR UNKNOWN, WHICH PURCHASER MIGHT HAVE ASSERTED OR ALLEGED
AGAINST SELLER, AT ANY TIME BY REASON OF OR ARISING OUT OF ANY LATENT OR PATENT
CONSTRUCTION DEFECTS OR PHYSICAL CONDITIONS, VIOLATIONS OF ANY APPLICABLE LAWS
(INCLUDING, WITHOUT LIMITATION, ANY ENVIRONMENTAL LAWS) AND ANY AND ALL OTHER
MATTERS REGARDING THE PHYSICAL OR ENVIRONMENTAL CONDITION OF THE PROPERTY. NOTWITHSTANDING
THE FOREGOING, THIS RELEASE SHALL NOT EXTEND TO ANY BREACH OF A REPRESENTATION
OR WARRANTY OF SELLER, SELLER’S FRAUD OR A VIOLATION OF LAWS BY SELLER.

11.3         PURCHASER ACKNOWLEDGES AND AGREES THAT
THE WAIVERS, RELEASES AND OTHER PROVISIONS CONTAINED IN THIS SECTION 11
WERE A MATERIAL FACTOR IN SELLER’S ACCEPTANCE OF THE PURCHASE PRICE AND THAT
SELLER IS UNWILLING TO SELL THE PROPERTY TO PURCHASER UNLESS SELLER IS RELEASED
AS EXPRESSLY SET FORTH ABOVE. PURCHASER, WITH PURCHASER’S COUNSEL, HAS FULLY
REVIEWED THE DISCLAIMERS AND WAIVERS SET FORTH IN THIS AGREEMENT, AND
UNDERSTANDS THE SIGNIFICANCE AND EFFECT THEREOF. THE TERMS AND CONDITIONS OF
THIS SECTION 11 WILL EXPRESSLY SURVIVE THE CLOSING, WILL NOT MERGE WITH 

 16
 

 

 

THE PROVISIONS OF ANY CLOSING DOCUMENTS, AND WILL BE
INCORPORATED INTO THE DEED.

12.           SELLER’S CLOSING
DELIVERIES.

At Closing (or such
other times as may be specified below), Seller shall deliver or cause to be
delivered to Purchaser the following:

12.1         Deeds. A Deed executed by
Seller, conveying the Land and Improvements to Purchaser, subject to the
Permitted Exceptions in the form attached as Exhibit H.

12.2         Assignment of Leases. Two (2) duly
executed counterparts of an Assignment and Assumption of Leases (the “Assignment of Leases”) in the form attached hereto as Exhibit E.

12.3         Assignment of Contracts. Two (2) duly
executed counterparts of an Assignment and Assumption of Contracts (an “Assignment of Contracts”) in the form attached hereto as Exhibit F.

12.4         Bill of Sale. Two (2) duly
executed originals of a Bill of Sale (the “Bill of Sale”)
in the form attached hereto as Exhibit G.

12.5         Keys. Keys to all locks located
in the Improvements.

12.6         Affidavit of Title. An affidavit
of title (or comparable “no lien” statement), in form and substance reasonably
acceptable to the Title Company as may be required to enable Title Company to
issue ALTA extended coverage for the Title Policy.

12.7         Closing Statement. Two (2) duly
executed counterparts of a closing statement (the “Closing
Statement”) conforming to the proration and other relevant
provisions of this Agreement, which Closing Statement shall be in a form
mutually and reasonably agreed upon by Seller and Purchaser.

12.8         Entity Transfer Certificate. Entity
Transfer Certification confirming that Seller is a “United States Person”
within the meaning of Section 1445 of the Internal Revenue Code of 1986,
as amended.

12.9         Letter of Credit. If applicable,
with respect to any security deposits that are letters of credit, Seller shall (a) deliver
to Purchaser at the Closing such letters of credit, (b) execute and
deliver such other instruments as the issuers of such letters of credit shall
reasonably require, and (c) cooperate with Purchaser to change the named
beneficiary under such letters of credit to Purchaser, so long as Seller does
not incur any additional liability or expense in connection therewith.

12.10       Notices to Tenants. Notices to
each of the tenants under the Leases, notifying them of the sale of the Land
and Improvements and directing them to pay all future rent as Purchaser may
direct, which forms shall be prepared by Purchaser and reasonably acceptable to
Seller.

 17
 

 

 

12.11       Estoppel Certificates. The
Conforming Estoppels pursuant to Section 10.6
above.

12.12       Leases. Originals or certified
copies of the Leases, which certification shall be made subject to all of the
terms, conditions and limitations of Sections  8.2 and 8.3.

12.13       Closing Date Certificate. For
purposes of determining whether the Representation Condition has been
satisfied, Seller shall deliver to Purchaser at Closing a certificate (the “Closing Date Certificate”) certifying that all of the Seller
Representations are true and correct, as of the Closing Date and in all
material respects, except for changes and qualifications specified in such
Closing Date Certificate, such that the Closing Date Certificate is true and
accurate in all material respects. The representations, warranties and
certifications contained in the Closing Date Certificate shall be made by
Seller to the standard of knowledge, if any, contained herein for the
applicable representations, warranties or certifications and subject to all of
the terms, conditions and limitations contained in Sections 8.2 and
8.3
of this Agreement. Notwithstanding anything contained herein to the contrary,
if, as of the Closing, the Representation Condition is not fulfilled for any
reason or any Seller Representations are not true and correct for any reason
not within the reasonable control of Seller, in any material respect, Purchaser
may, in its sole discretion and as its sole remedy, hereunder, at law or in
equity, elect either to (aa) terminate this Agreement by delivery of written
notice to Seller not later than the Closing Date, whereupon the Deposit shall
be returned to Purchaser and neither party shall have any further liability
hereunder except for those liabilities that expressly survive a termination of
this Agreement; or (bb) proceed to Closing and waive the failure of the
Representation Condition.

13.           PURCHASER’S CLOSING
DELIVERIES.

At Closing (or at such
other times as may be specified below), Purchaser shall deliver or cause to be
delivered to Seller the following:

13.1         Closing Statement. Two (2) Closing
Statements executed in counterpart by Purchaser.

13.2         Assignment of Leases. Two (2) Assignment
of Leases executed in counterpart by Purchaser.

13.3         Assignment of Contracts. Two (2) Assignment
of Contracts executed in counterpart by Purchaser.

14.           PRORATIONS AND
ADJUSTMENTS.

Prorations
shall be made as of the Closing Date as if Purchaser were in title for the
entire Closing Date provided that no later than 11:00 a.m. Central Time on
the Closing Date, the Purchase Price, plus or minus the prorations and other
adjustments hereunder, shall be received by the Title Company from Purchaser
for disbursement to Seller by Federal Reserve wire transfer of immediately
available funds to an account designated by Seller. If the net proceeds of the
Purchase Price payable to Seller (after adjustments and prorations) are not
sent by Federal Reserve wire transfer in immediately available funds and
received by the Title Company from Purchaser for disbursement to Seller on or
prior to 11:00 a.m. Central Time on the Closing Date, 

 18
 

 

 

prorations shall be made as of the Closing Date as if
Seller remained in title as of the entire Closing Date, except that, to the
extent such delay results from Seller’s failure to provide deliveries or
default, prorations shall be made pursuant to the preceding sentence. The
following shall be prorated and adjusted between Seller and Purchaser:

14.1         Security Deposits. The amount of
all cash security and any other cash tenant deposits held by Seller under the
Leases, and interest due thereon, if any, shall be credited to Purchaser.

14.2         Utilities and Operating Expenses.
To the extent not billed directly to tenants, or paid as part of Additional
Rent (as hereinafter defined) or otherwise by tenants, water, electricity,
sewer, gas, telephone and other utility charges based, to the extent
practicable, on final meter readings and final invoices. Any operating expenses
that are not paid by the tenants as Additional Rent or otherwise shall be
prorated between Purchaser and Seller, with Seller receiving a credit for any
operating expenses paid by Seller and related to the period from and after
Closing.

14.3         Contracts. Amounts paid or
payable under the Contracts shall be prorated.

14.4         Assessments. To the extent not
paid by tenants as a component of Additional Rent or otherwise, all
assessments, general or special, shall be prorated as of the Closing Date, with
Seller being responsible for any installments of assessments that are due and
payable prior to the Closing Date and Purchaser being responsible for any
installments of assessments that are due and payable on or after the Closing
Date.

14.5         Base Rent. Purchaser will
receive a credit at Closing for the prorated amount of all base or fixed rent
payable pursuant to the Leases and all Additional Rents (collectively, “Rent”) previously paid to, or collected by, Seller and
attributable to any period following the Closing Date. Rents are “Delinquent”
when they were due prior to the Closing Date, and payment thereof has not been
made on or before the Closing Date. Delinquent Rent shall not be prorated at
Closing. All Rent collected by Purchaser or Seller from each tenant from and
after Closing will be applied as follows: 
(i) first, to Delinquent Rent owed for the month in which the
Closing Date occurs (the “Closing Month”),
(ii) second, to any accrued Rents owing to Purchaser, and (iii) third,
to Delinquent Rents owing to Seller for the period prior to Closing. Any Rent
collected by Purchaser and due Seller will be promptly remitted to Seller. Any
Rent collected by Seller and due Purchaser shall be promptly remitted to
Purchaser. Purchaser shall use reasonable efforts to collect Delinquent Rents
owed to Seller in the ordinary course of its business; provided, however, that
Seller hereby retains the right to pursue any tenant under the Leases for any
Rent and other sums due Seller for period attributable to Seller’s ownership of
the Property; and provided further, however, Seller (i) shall be required
to notify Purchaser in writing of Seller’s intention to commence or pursue any
legal proceedings; and (ii) shall not be permitted to commence or pursue
any legal proceedings against any tenant seeking eviction of such tenant or the
termination of the underlying Lease. “Additional Rents”
shall mean any and all amounts due from tenants for operating expenses, common
area maintenance charges, taxes, shared utility charges, management fees,
insurance costs, other comparable expenses and pass-through charges and any
other tenant charges. The provisions of this Section 14.5
shall survive the Closing and the delivery of any conveyance documentation.

 19
 

 

 

14.6         Taxes. To the extent not paid by
the tenant directly or payable by tenants as Additional Rent or otherwise, all
ad valorem real estate and personal property taxes with respect to the Land and
the Improvements shall be prorated as of the Closing Date, based on the most
currently available final tax bill and on a cash basis for the calendar year in
which the Closing occurs, regardless of the year for which such taxes are
assessed.

14.7         Other. Such other items as are
customarily prorated in transactions of this nature shall be ratably prorated.

14.8         Adjustments. In the event any
prorations made pursuant hereto shall prove incorrect for any reason
whatsoever, or in the event the prorations set forth above are estimated on the
most currently available (rather than based on the actual final) bills, either
party shall be entitled to an adjustment to correct the same provided that it makes
written demand on the other within twelve (12) months after the Closing Date. The
provisions of this Section 14.7
shall survive Closing.

15.           CLOSING EXPENSES.

Seller shall only pay for: one-half any transfer taxes, one-half
the cost of any escrows hereunder and the cost of the Title Policy (excluding
any endorsements thereto or any “extended form coverage”). Purchaser shall pay
for one half the costs of any escrow hereunder, the cost of any endorsements
thereto and any “extended form coverage” to the Title Policy, any excise tax,
the cost of the Updated Survey, the costs and expenses in connection with any
loan to Purchaser with respect to the transaction contemplated hereby, one-half
any transfer taxes and the cost of recording the Deeds.

16.           DESTRUCTION, LOSS
OR DIMINUTION OF PROPERTY.

If,
prior to Closing, all or any portion of any or all of the Land and the
Improvements is damaged by fire or other natural casualty (collectively “Damage”), or is taken or made subject to condemnation,
eminent domain or other governmental acquisition proceedings (collectively “Eminent Domain”), then:

16.1         If the aggregate cost of repair or
replacement or the value of the Eminent Domain (collectively, “repair and/or replacement”)
is $100,000 or less, in the
opinion of Purchaser’s and Seller’s respective engineering consultants,
Purchaser shall close and take the Property as diminished by such events, with
an assignment by Seller of (a) any casualty insurance proceeds (together
with a credit from Seller to Purchaser of the full amount of any deductible not
paid directly by Seller or (b) condemnation proceeds, and  (c) an amount equal to the uninsured
portion of any casualty or condemnation up to an aggregate of (a), (b) and
(c) of $100,000 and (d) in the case of either (a), (b) or (c),
less any amounts reasonably incurred by Seller to repair the Property and
collect the insurance proceeds or condemnation award.

16.2         If the aggregate cost of repair and/or
replacement is greater than $100,000, in the opinion of Purchaser’s and Seller’s
respective engineering consultants, then Purchaser, at its sole option, may
elect either to (i) terminate this Agreement by written notice to Seller
delivered within five (5) days after Purchaser is notified of such Damage
or Eminent Domain, in which event the Deposit shall be returned to Purchaser
and neither party shall have any further liability 

 20
 

 

 

to the other hereunder, except for those liabilities
that expressly survive a termination of this Agreement; or (ii) proceed to
close and take the Property as diminished by such events, together with an
assignment of the proceeds of Seller’s casualty insurance (together with a
credit from Seller to Purchaser of the full amount of any deductible not paid
directly by Seller) for all Damage (or condemnation awards for any Eminent
Domain), less any amounts reasonably incurred by Seller to repair the Property
and collect the insurance proceeds or condemnation award.

16.3         In the event of a dispute between
Seller and Purchaser with respect to the cost of repair and/or replacement with
respect to the matters set forth in this Section 16,
an engineer designated by Seller and an engineer designated by Purchaser shall
select an independent engineer licensed to practice in the jurisdiction where
the Property is located who shall resolve such dispute. All fees, costs and
expenses of such third engineer so selected shall be shared equally by
Purchaser and Seller.

17.           CONDITIONS
PRECEDENT

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

(a)           Seller shall have delivered to Title
Company all of the items required to be delivered to Purchaser pursuant to the
terms of this Agreement;

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

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

(d)           Title Company shall be
unconditionally committed to issue to Purchaser upon the Closing the Title
Policy in the form of the pro-forma policy or title commitment in the form
contemplated by Section 7.2.

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

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

(b)           Purchaser shall have delivered to
Title Company, all of the items required to be delivered to Seller pursuant to
the terms of this Agreement, including, but not limited to, those provided for
in Section 13 hereof;

 21
 

 

 

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

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

18.           DEFAULT.

18.1         The following shall constitute a “Default”
of Purchaser hereunder:  (i) Purchaser
defaults under any provision of this Agreement providing for the payment of
money or obligation to proceed to Closing; (ii) Purchaser defaults under
any other provision of this Agreement and such default is not cured for a
period of three (3) business days after receipt of notice of such default.

18.2         The following shall constitute a
Default of Seller hereunder:  (i) Seller
defaults under any provision of this Agreement providing for the payment of
money or obligation to proceed to Closing; (ii) Seller defaults under any
other provision of this Agreement and such default is not cured for a period of
three (3) business days after receipt of notice of such default.

18.3         Default by Seller. If Seller is
in Default under any of the covenants and agreements of Seller hereunder,
Purchaser may either (i) terminate Purchaser’s obligations under this
Agreement by written notice to Seller, in which event (a) the Deposit
shall be returned to Purchaser and Seller shall reimburse Purchaser for all
reasonable, third party costs and expenses paid or incurred by Purchaser to
negotiate this Agreement and conduct its Basic Project Inspection promptly
after the presentation of invoices thereof (the “Cost Payment”)
up to a maximum aggregate amount not to exceed $25,000 and (b) upon
Purchaser’s receipt of the Deposit and the Cost Payment, this Agreement shall
terminate and neither party shall have any further liability hereunder except
for those liabilities that expressly survive a termination of this Agreement;
or (ii) Purchaser may file an action for specific performance; provided,
however, that if specific performance is not available as a result of Seller’s
conveyance of the Property to a third party in breach of this Agreement,
Purchaser may pursue an action for damages actually suffered by Purchaser up to
an amount not to exceed $200,000. Purchaser shall have no other remedy for any
Default by Seller. In the event of the failure of any condition precedent to
Purchaser’s obligation to close expressly herein set forth, or in the event of
the untruth or inaccuracy, in any material respect, of any Seller
Representation as of the Contract Date (subject to the limitations contained in
Sections 8.4 and 12.13),
Purchaser’s sole remedy hereunder, at law or in equity except as hereinafter
expressly provided, shall be to terminate this Agreement by delivery of written
notice to Seller on or prior to Closing (or such sooner date as may be herein
specified), in which event the Deposit shall be returned to Purchaser, and
neither party shall have any further liability hereunder except for those
liabilities that expressly survive a termination of this Agreement. Notwithstanding
the foregoing, in the event that, (A) as a result of the willful
misconduct of Seller (or in the case of a breach of a Seller Representation,
the deliberate and knowing misrepresentation by Seller of a Seller
Representation) or an action of Seller taken with the express purpose of
frustrating the purposes of this Agreement, (i) any Seller Representation
is breached in any material respect; (ii) any condition precedent to
Purchaser’s obligation fails, 

 22
 

 

 

or (iii) Seller fails to perform any covenant or
agreement hereunder in Default; and (B) Purchaser elects to terminate this
Agreement, Seller shall reimburse Purchaser for all reasonable, third party
costs or expenses paid or incurred by Purchaser to pursue the transactions
contemplated hereby up to an amount not to exceed $200,000 promptly, and in any
event within ten (10) days, after the presentation of invoices therefore. All
of the foregoing shall be without limitation upon the rights and remedies of
Purchaser hereunder, at law or in equity, in the event of a Default by Seller
pursuant to Sections 19 or 22 or any covenant, agreement, indemnity, representation or
warranty of Seller that survives the applicable Closing or the termination of
this Agreement, subject to the limitations in Sections 8.2
and 8.3 and Sections
11.1, 11.2 and 11.3.

18.4         Default by Purchaser. In the
event Purchaser Defaults in its obligations to close the purchase of the
Property, or in the event Purchaser is otherwise in Default hereunder, then (i) Seller
shall be entitled to (and shall) receive the Deposit as fixed and liquidated
damages, this Agreement shall terminate and neither party shall have any
further liability hereunder, except for those liabilities which expressly
survive the termination of this Agreement and (ii) Purchaser shall
immediately direct the Title Company, in writing, to pay the Deposit to Seller.
Seller shall have no other remedy for any Default by Purchaser, including any
right to damages. PURCHASER AND SELLER ACKNOWLEDGE AND AGREE THAT:  (1) THE AMOUNT OF THE DEPOSIT IS A
REASONABLE ESTIMATE OF AND BEARS A REASONABLE RELATIONSHIP TO THE DAMAGES THAT
WOULD BE SUFFERED AND COSTS INCURRED BY SELLER AS A RESULT OF HAVING WITHDRAWN
THE PROPERTY FROM SALE AND THE FAILURE OF CLOSING TO HAVE OCCURRED DUE TO A
DEFAULT OF PURCHASER UNDER THIS AGREEMENT; (2) THE ACTUAL DAMAGES SUFFERED
AND COSTS INCURRED BY SELLER AS A RESULT OF SUCH WITHDRAWAL AND FAILURE TO
CLOSE DUE TO A DEFAULT OF PURCHASER UNDER THIS AGREEMENT WOULD BE EXTREMELY
DIFFICULT AND IMPRACTICAL TO DETERMINE; (3) PURCHASER SEEKS TO LIMIT ITS
LIABILITY UNDER THIS AGREEMENT TO THE AMOUNT OF THE DEPOSIT IN THE EVENT THIS
AGREEMENT IS TERMINATED AND THE TRANSACTION CONTEMPLATED BY THIS AGREEMENT DOES
NOT CLOSE DUE TO A DEFAULT OF PURCHASER UNDER THIS AGREEMENT; AND (4) THE
AMOUNT OF THE DEPOSIT SHALL BE AND CONSTITUTE VALID LIQUIDATED DAMAGES. All of
the foregoing shall be without limitation upon the rights and remedies of
Seller hereunder, at law or in equity, in the event of a Default by Purchaser
pursuant to Sections 6.1, 6.2, 6.3, 20 or 23 or any
covenant, agreement, indemnity, representation or warranty of Purchaser that
survives the Closing or the termination of this Agreement.

19.           SUCCESSORS AND
ASSIGNS.

Neither
party shall assign this Agreement without the prior written consent of the
other, except that either party may assign its interest in and obligations
under this Agreement to a so-called “Qualified Intermediary” in order to
accomplish an Exchange. Notwithstanding the foregoing, Purchaser may assign, in
whole or in part, all of its rights, title, liability, interest and obligation
pursuant to this Agreement to an affiliate of Purchaser; provided that (i) no
such assignment shall act to release Purchaser hereunder and (ii) Purchaser
provides Seller with a copy of a written assignment agreement between Purchaser
and its assignee(s), which instrument shall be in form reasonably acceptable to
Seller.

 23
 

 

 

20.           LITIGATION.

In
the event of litigation between the parties with respect to the Property, this
Agreement, the performance of their respective obligations hereunder or the
effect of a termination under this Agreement, the losing party shall pay all
costs and expenses incurred by the prevailing party in connection with such
litigation, including, but not limited to, reasonable attorneys’ fees of
counsel selected by the prevailing party. Notwithstanding any provision of this
Agreement to the contrary, the obligations of the parties under this Section 20 shall survive termination of this Agreement
or the Closing and the delivery of any conveyance documentation.

21.           NOTICES.

Any
notice, demand or request which may be permitted, required or desired to be
given in connection therewith shall be given in writing and directed to Seller
and Purchaser as follows:

	
  Seller:

  	
  First Industrial Development Services, Inc.

  311 South Wacker Drive, Suite 4000

  Chicago, Illinois 60606

  Attn: Steve Janowiak

  Facsimile: 312- 895-9479

  
	
   

  	
   

  
	
  With a copy to

  	
   

  
	
  its attorneys:

  	
  Barack Ferrazzano Kirschbaum Perlman &
  Nagelberg LLP

  333 W. Wacker Dr., Suite 2700

  Chicago, Illinois 60606

  Attn: Jeffrey S. Rinkov

  Facsimile: 312-984-3150

  
	
   

  	
   

  
	
  Purchaser::

  	
  Simpson Manufacturing Co., Inc.

  5956 Las Positas

  Pleasanton, California 94588

  Attention: Michael Herbert, Chief Financial Officer

  Fax: (925) 833-1496

  
	
   

  	
   

  
	
  with a copy to:

  	
  Alan J. Robin, Esq.

  Shartsis, Friese LLP

  One Maritime Plaza, 18th Floor

  San Francisco, California 94111

  Fax 415-421 2922

  
	
   

  	
   

  

 

Notices shall be deemed
properly delivered and received:  (i) when
and if personally delivered; or (ii) one (1) business day after
deposit with Federal Express or other comparable commercial overnight courier;
or (iii) the same day when sent by confirmed facsimile before 5:00 p.m.
(Central Time) on a business day provided such facsimile is confirmed verbally.
Notices may be delivered on behalf of the parties by their respective
attorneys.

22.           BENEFIT.

 24
 

 

 

This
Agreement is for the benefit only of the parties hereto and no other person or
entity shall be entitled to rely hereon, receive any benefit herefrom or
enforce against any party hereto any provision hereof.

23.           BROKERAGE.

Each
party hereto represents and warrants to the other that it has dealt with no
brokers or finders in connection with this transaction, except for CB Richard
Ellis and Chas Hawkins Company (“Broker”). Seller
shall pay the brokers’ commission due to Broker pursuant to the terms of a
separate agreement between Seller and Broker. Seller hereby indemnifies,
protects, defends and holds Purchaser and the Purchaser’s Indemnified Parties
harmless from and against all Losses suffered or incurred by any or all of
Purchaser and the Purchaser’s Indemnified Parties resulting from the claims of
any broker, finder or other such party in connection with the transactions
contemplated by this Agreement claiming by, through or under the acts or
agreements of Seller. Purchaser hereby indemnifies, protects, defends and holds
Seller and the Seller Indemnified Parties harmless from and against all Losses
suffered or incurred by any or all of Seller and the Seller Indemnified Parties
resulting from the claims of any broker, finder or other such party in
connection with the transactions contemplated by this Agreement claiming by,
through or under the acts or agreements of Purchaser. The obligations of the
parties pursuant to this Section 22
shall survive any termination of this Agreement.

24.           SEC Filing.         Notwithstanding anything in this
Agreement to the contrary, it is expressly agreed and understood that Purchaser
shall have the right, in its sole and absolute discretion, to file this
Agreement with the Securities and Exchange Commission, if Purchaser determines
that such filing is necessary or advisable under the Securities Exchange Act of
1934, as amended (“SEC Filings”).
Except as expressly permitted with respect to SEC Filings, prior to the
Closing, any release to the public of confidential information with respect to
the sale contemplated herein or any material terms set forth in this Agreement
will be made only in the form approved by Purchaser and Seller.

25.           MISCELLANEOUS.

25.1         Entire Agreement. This Agreement
constitutes the entire understanding between the parties with respect to the
transaction contemplated herein, and all prior or contemporaneous oral
agreements, understandings, representations and statements, and all prior
written agreements, understandings, letters of intent and proposals are merged
into this Agreement. Neither this Agreement nor any provisions hereof may be
waived, modified, amended, discharged or terminated except by an instrument in
writing signed by the party against which the enforcement of such waiver,
modification, amendment, discharge or termination is sought, and then only to
the extent set forth in such instrument.

25.2         Time of the Essence. Time is of
the essence of this Agreement. If any date herein set forth for the performance
of any obligations by Seller or Purchaser or for the delivery of any instrument
or notice as herein provided should be on a Saturday, Sunday or legal holiday,
the compliance with such obligations or delivery shall be deemed acceptable on
the next business day following such Saturday, Sunday or legal holiday. As used
herein, the term “legal holiday” 

 25
 

 

 

means any state or federal holiday for which financial
institutions or post offices are generally closed in the State of Tennessee for
observance thereof.

25.3         Governing Law. This Agreement
shall be governed by and construed in accordance with the internal laws of the
State of Tennessee, without reference to its rules regarding conflicts of
laws.

25.4         Partial Invalidity. The
provisions hereof shall be deemed independent and severable, and the invalidity
or partial invalidity or enforceability of any one provision shall not affect
the validity of enforceability of any other provision hereof.

25.5         No Recording. Neither this Agreement
nor any memorandum thereof shall be recorded and the act of recording by
Purchaser shall be deemed a default by Purchaser hereunder.

25.6         Counterparts; Facsimile. This
Agreement may be executed in multiple counterparts and shall be valid and binding
with the same force and effect as if all parties had executed the same
Agreement. A fully executed facsimile copy of this Agreement shall be effective
as an original.

25.7         Construction of Agreement. In
construing this Agreement, all headings and titles are for the convenience of
the parties only and shall not be considered a part of this Agreement. Whenever
required by the context, the singular shall include the plural and the
masculine shall include the feminine and vice versa. This Agreement shall not
be construed as if prepared by one of the parties, but rather according to its
fair meaning as a whole, as if both parties had prepared it. All Exhibits
attached hereto are incorporated in this Agreement by reference thereto.

25.8         No Oral Modification or Waiver. This
Agreement may not be changed or amended orally, but only by an agreement signed
by Purchaser and Seller in writing. No waiver shall be effective hereunder
unless given in writing, and waiver shall not be inferred from any conduct of
either party.

25.9         Survival. Only those covenants,
agreements, undertakings and representations and warranties of Seller and
Purchaser that expressly survive Closing pursuant to the terms of the Agreement
shall survive Closing and the delivery of any conveyance documentation for the
period herein set forth and all of the other covenants, agreements,
undertakings and representations and warranties of Seller and Purchaser
contained herein shall not survive Closing and shall merge into the conveyance
documentation delivered at Closing.

26.           BOARD APPROVAL.
The transactions contemplated hereby are
subject to the approval of the investment committee (the “Board”)
of Seller on or prior to 30 days after the Contract Date (the “Internal Approval Date”). If the Board fails to approve the transactions
contemplated hereby for any reason or no reason, Seller shall have the right to
terminate this Agreement by delivery of written notice to Purchaser on or prior
to the Internal Approval Date, whereupon (i) this Agreement shall terminate
and the Deposit shall be returned to Purchaser by the Title Company (or the
Seller to the extend previously released to Seller); and (ii) neither
party shall have any further liabilities hereunder except those liabilities
that expressly survive a termination of this Agreement. It is acknowledged by
Purchaser that the Board may elect not 

 26
 

 

 

to
approve this transaction in its sole discretion for any reason, including, but
not limited to, a determination by the Board to sell the Property to a third
party. Seller will notify Purchaser immediately in the event the Board
disapproves the transactions contemplated herein.

[signature page follows]

 27
 

 

 

IN WITNESS WHEREOF, the
parties hereto have executed this Agreement of Purchase and Sale on the date
first above written.

	
   

  	
  SELLER:

  
	
   

  	
   

  
	
   

  	
  FIRST
  INDUSTRIAL DEVELOPMENT SERVICES, INC.,

  
	
   

  	
  a Maryland
  corporation, its sole member

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ DONALD
  STOFFLE

  
	
   

  	
   

  	
   

  
	
   

  	
  Name: 

  	
  Donald Stoffle

  
	
   

  	
   

  	
   

  
	
   

  	
  Its: 

  	
  Authorized
  Signatory

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  PURCHASER:

  
	
   

  	
   

  
	
   

  	
  SIMPSON
  MANUFACTURING CO. Inc.,

  
	
   

  	
  a Delaware
  corporation

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ MICHAEL J.
  HERBERT

  
	
   

  	
   

  	
   

  
	
   

  	
  Name: 

  	
  Michael J.
  Herbert

  
	
   

  	
   

  	
   

  
	
   

  	
  Its:

  	
  Chief Financial
  Officer

  

 

 28

 

SCHEDULE
OF EXHIBITS

A  Legal Description of the Land

B   Earnest Money Escrow Instructions

C   Documents

D  Estoppel Certificate

E   Assignment and Assumption of Leases

F   Assignment and Assumption of Intangibles

G   INTENTIONALLY OMITTED

H  Deed

 

EXHIBIT A

LEGAL
DESCRIPTION OF THE LAND

SURVEYOR’S
DESCRIPTION

OF

BOSCH PROPERTY

Three tracts of land located in the Third Civil District of Sumner County, Tennessee
on Belvedere Drive at the CSX
Railroad, said tracts being the same property described in Schedule A of Chicago Title Insurance Company Commitment No. 300589 and being more particularly described
as follows:

TRACT
ONE

Beginning
in the easterly right-of-way of Belvedere Drive northeasterly 500.1 6 feet from an iron rod at the intersection of the easterly right-of-way of Belvedere Drive and the northerly right-of-way of CSX Railroad:

Thence
with said right-of-way of Belvedere Drive as follows:

Northeasterly
with
a curve
to the right
80.64 feet
to an iron rod, said
curve having a radius of 666.20 feet, a central angle of 06° 56’ 08” and a chord of 80.59 feet at North 21° 59’ 56” East; 
North 25° 28’ 00” East, 115.19 feet to an iron rod; 
Northeasterly
with a curve to the left 437.58 feet to an iron rod, said curve having a radius of 1,176.15
feet, a central angle of 21° 19’ 00” and a chord of 435.06 feet at North 14° 48’ 30” East; 
North 04° 09’ 00” East, 443.1 9 feet;

Thence
South
85° 10’ 00” East, 1,000.07 feet to the westerly boundary of Green & Little L.L.C. property of record in Deed Book 765, Page 768, R.O.S.C.

Thence
with said Green & Little
boundary
South 04° 09’ 00” West, 504.31 feet to an iron rod in the northerly right-of-way of CSX Railroad;

Thence
with said right-of-way Southwesterly with a curve to the left 879.65 feet, said curve having a radius of 2,657.39
feet, a
central
angle of
18° 57’ 58” and a chord of 875.64 feet at South 57° 41’ 28” West.

Thence
North
88° 12’ 06” West, 443.15 feet to the
beginning;

Containing
19.746
acres,
more or less, and being property conveyed to Bosch Braking Systems Corporation by deed from Allied-Signal, Inc., of record in Book 581, Page 726, R.O.S.C.

The above described property is subject to the following:

1.                 Charter
right-of-way for CSX Railroad 100 feet from center of
tracks.

2.                 Subject tract fence encroaches onto Green & Little
L.L.C. property.

TRACT
TWO

Beginning
in the easterly right-of-way of Belvedere Drive northeasterly 1,576.76 feet from an iron rod at the intersection of the easterly
right-of-way of Belvedere Drive and the northerly right-of-way of CSX Railroad;

Thence
with said right-of-way of Belvedere Drive North 04° 09’ 00” East, 401.72 feet to the southwesterly corner of Green & Little Development Company
property
of record in Deed Book 519, Page 819, R.O.S.C.;

Thence
South
85° 51’
00” East, 1,000.00 feet to an iron rod at an interior corner of Green & Little L.L.C. property of record in Deed Book 765, Page 768, R.O.S.C.

Thence
with said Green & Little L.L.C. boundary South 04° 09’ 00” West, 413.65 feet; 

Thence
North
85° 10’ 00” West, 1,000.07 feet to the beginning; 

 A-1
 

 

Containing
9.359 acres, more or less, and being property conveyed to Bosch Braking Systems
Corporation by deed from Allied-Signal. Inc., of record in Book 581, Page 726. R.O.S.C.

The
above described property is subject to the following:

1.                 Subject tract
fence encroaches onto Green & Little
L.L.C. property.

2.                 Not
to be used as a separate building tract without the approval of the City of Gallatin, Tennessee.

TRACT
THREE

Beginning
at an iron rod at the intersection of the easterly right-of-way of Belvedere Drive
and the northerly right-of-way of CSX Railroad;

Thence
with
said
right-of-way of Belvedere Drive northwesterly with a curve to the right 500.16 feet, said curve
having a radius of 666.20 feet, a central angle of 43” 00’ 56” and a chord
of 488.49 feet at North 02” 58 36 West;

Thence
South 88” 12’ 06” East, 443.1 5 feet to the northerly
right-of-way of CSX Railroad;

Thence
with
said
right-of-way Southwesterly with a curve to the left 633.14
feet to the beginning., said curve having a radius of 2,657.39 feet, a central angle of 13”
39’ 04” and a chord of
631.64 feet at South 37” 58’ 11” West.

Containing
2.643
acres,
more or less, and being property conveyed to Bosch Braking Systems Corporation
by deed from Allied-Signal, Inc., of record in Book 581, Page 726, R.O.S.C.

The above described property is subject to the following:

1.                 Charter
right-of-way for CSX Railroad 100 feet
from center of tracks.

2.                 Not
to be
used as a separate building tract without
the approval of the City of
Gallatin, Tennessee.

 A-2

 

EXHIBIT B

EARNEST
MONEY ESCROW INSTRUCTIONS

These Earnest Money Escrow Instructions (“Instructions”) are entered into as of this _______ day of
February, 2006 by and among FIRST INDUSTRIAL
DEVELOPMENT SERVICES, INC. (“Seller”), SIMPSON MANUFACTURING COMPANY, a _______________________ (“Purchaser”), and FIRST AMERICAN TITLE
INSURANCE COMPANY (“Escrowee”).

WHEREAS, Purchaser
and Seller entered into an Agreement of Purchase and Sale, dated as of the date
hereof, (the “Agreement”), for the purchase and
sale of the Property (as defined in the Agreement); and

WHEREAS, the
parties desire to enter into escrow instructions with Escrowee pursuant to
which Purchaser shall deposit earnest money, as required under the Agreement
(the “Escrow”).

NOW THEREFORE, in
consideration of the mutual covenants contained in these Instructions, and
other good and valuable consideration, the receipt and legal sufficiency of
which are hereby acknowledged, the parties agree as follows:

1.             Deposit.

1.1           Earnest Money. Pursuant to the
terms and provisions of the Agreement, Purchaser has deposited (or shall
deposit) with Escrowee initial earnest money in the sum of One Hundred  Thousand and No/100 Dollars ($100,000.00)
(the “Initial Earnest Money”) and, as an
additional deposit in the sum of One Hundred Thousand and No/100 Dollars (the “Additional Earnest Money, together the Initial Earnest Money
and any interest earned thereon, the “Earnest  Money”).

1.2           Investment of Earnest Money. Escrowee
shall invest the Earnest Money in interest-bearing securities, bank deposits
and/or so-called “money market funds” established and managed by nationally
recognized firms, as selected by Purchaser.

2.             Application of
Earnest Money at Closing and Upon Termination of Agreement.

2.1           At Closing. At Closing (as defined
in the Agreement), the Earnest Money shall be delivered by Escrowee to Seller
and credited against the payment of the Purchase Price whereupon the Escrow
shall terminate.

2.2           Upon Termination of the Agreement.
Except as otherwise provided in Section 3
below, in the event of any termination of the Agreement, the Earnest Money
shall be distributed by Escrowee only pursuant to the joint written direction
of Purchaser and Seller.

3.             Default.

3.1           Purchaser’s Default. In the
event that Purchaser breaches or defaults under the obligations imposed on it
under the Agreement, and Seller desires to obtain the Earnest Money 

 B-1
 

 

 

from Escrowee (pursuant to the terms of the
Agreement), Seller shall be required to present to Escrowee:  Seller’s affidavit of default (the “Default Affidavit”), executed under penalty of perjury by an
authorized representative of Seller, certifying to Purchaser and Escrowee that
Purchaser is in default under the Agreement and, therefore, Seller is entitled
to the Earnest Money proceeds. Upon receipt of the Default Affidavit from
Seller, Escrowee shall (i) deliver a copy of the Default Affidavit to
Purchaser, in the manner as provided in Section 5
below and (ii) if, within five (5) business days after the date on
which the Default Affidavit is deemed to be delivered to Purchaser (pursuant to
Section 5
below), Escrowee has not received from Purchaser a notice (“Objection Notice”) objecting to Escrowee’s compliance with
the Default Affidavit, Escrowee shall deliver the Earnest Money.

3.2           Seller’s Default. In the event
that Seller breaches or defaults under the obligations imposed on it under the
Agreement, and Purchaser desires the return of the Earnest Money from Escrowee
(pursuant to the terms of the Agreement), Purchaser shall be required to present
to Escrowee:  its own Default Affidavit
executed under penalty of perjury by an authorized representative of Purchaser
certifying to Seller and Escrowee that Seller is in default under the Agreement
and, therefore, Purchaser is entitled to return of the Earnest Money proceeds. Upon
receipt of the Default Affidavit from Purchaser, Escrowee shall (i) deliver
a copy of the Default Affidavit to Seller as provided in Section 5
below, and (ii) if, within five (5) business days after the date on
which the Default Affidavit is deemed to be delivered to Seller (pursuant to Section 5 below), Escrowee has
not received from Seller an Objection Notice, objecting to Escrowee’s
compliance with the Default Affidavit, Escrowee shall deliver the Earnest Money
to Purchaser.

4.             Objection Notices.
If Escrowee receives an Objection Notice from
either Seller or Purchaser within the time period set forth in Section 3
above, then Escrowee shall refuse to comply with the Default Affidavit then in
question (“Objectionable Default Affidavit”) until Escrowee receives (a) joint
written instructions executed by both Purchaser and Seller, or (b) a final
non-appealable order with respect to the disposition of the Earnest Money from
a federal or state court of competent jurisdiction (“Court Order”), in either
of which events Escrowee shall then disburse the Earnest Money in accordance
with such direction or Court Order, as the case may be. Notwithstanding the
immediately preceding sentence, if the party that delivers the Objection Notice
does not (i) commence litigation with respect to the Earnest Money by
filing a complaint or action for a declaratory judgment in an appropriate court
of competent jurisdiction (“Litigation”), and (ii) provide notice and a
file-stamped copy of such complaint or action for declaratory judgment to
Escrowee and the other party to these Instructions within thirty (30) days
after delivery of the then-applicable Objection Notice, then Escrowee shall
disburse the Earnest Money in accordance with the Objectionable Default
Affidavit.

Notwithstanding anything
to the contrary in the Agreement or these Instructions, Seller and Purchaser
hereby agree that in the event that (A) either or both of them delivers a
Default Affidavit pursuant to Section 3;
(B) the recipient of a Default Affidavit delivers an Objection Notice in
response thereto; (C) the party delivering an Objection Notice commences
Litigation; (D) the Litigation is ultimately resolved by the issuance of a
Court Order; and (E) the Court Order authorizes the disbursement of the
Earnest Money to the party that delivered the Default Affidavit that gave rise
to the Objection Notice and ensuing Litigation (the “Initiating
Party”), then the party that delivered such Objection Notice shall
be required to pay to the Initiating Party 

 B-2
 

 

 

interest on the Earnest
Money, from the date on which the Initiating Party delivered its Default
Affidavit through the date on which the Escrowee disburses the Earnest Money to
the Initiating Party, which interest shall be at the per annum rate of five
percent (5.0%) in excess of the per annum rate publicly announced, from time to
time, by Chase Bank (or its successor) as its “prime” or “base” or “reference”
rate of interest.

5.             Notices. Any notice,
demand or request which may be permitted, required or desired to be given in
connection therewith shall be given in writing and directed to the parties
hereto as follows:

	
  Seller:

  	
  First Industrial Development Services, Inc.

  311 South Wacker Drive, Suite 4000

  Chicago, Illinois 60606

  Attn: Steve Janowiak

  Facsimile: 312- 895-9479

  
	
   

  	
   

  
	
  With a copy to

  	
   

  
	
  its attorneys:

  	
  Barack Ferrazzano Kirschbaum Perlman &
  Nagelberg LLP

  333 W. Wacker Dr., Suite 2700

  Chicago, Illinois 60606

  Attn: Jeffrey S. Rinkov

  Facsimile: 312-984-3150

  
	
   

  	
   

  
	
  Purchaser:

  	
  Simpson Manufacturing Co., Inc.

  5956 Las Positas

  Pleasanton, California 94588

  Attention: Michael Herbert, Chief Financial Officer

  Fax: (925) 833-1496

  
	
   

  	
   

  
	
  with a copy to:

  	
  Alan J. Robin, Esq.

  Shartsis, Friese LLP

  One Maritime Plaza, 18th Floor

  San Francisco, California 94111

  Fax 415-421 2922

  
	
   

  	
   

  
	
  Escrowee:

  	
  First American Title Company

  30 North LaSalle, Suite 310

  Chicago, Illinois 60603

  Attn: Dick Seidel

  Facsimile: (312) 553-0480

  
	
   

  	
   

  

 

Notices shall be deemed
properly delivered and received when and if either (i) the same day when
personally delivered prior to 5:00 p.m. (Chicago time); or (ii) one (1) business
day after deposits with Federal Express or other overnight courier; or (iii) the
same day when sent by confirmed facsimile at or prior to 5:00 p.m.
(Chicago time) on a business day.

 B-3
 

 

 

6.             Escrowee
Obligations. The parties agree that, except as
otherwise expressly provided in Section 4, the actions of, and the relationship between,
Purchaser and Seller shall be governed by the terms of the Agreement. In all
events and under all circumstances (except as otherwise expressly provided in Section 4), the ultimate rights and obligations of Seller and
Purchaser shall be strictly governed and controlled by the terms and provisions
of the Agreement, rather than these Instructions. In the event of any conflict
between the terms and provisions of the Agreement and these Instructions, the
terms and provisions of the Agreement shall control in all events and
circumstances except as otherwise expressly provided in Section 4. Notwithstanding the existence of the Agreement or
any references herein to the Agreement, the parties agree that Escrowee (but
not Seller and Purchaser) shall be governed solely by the terms and provisions
of these Instructions. The parties furthermore agree that, except as otherwise
specifically provided in Section 4 above, Escrowee is hereby expressly authorized to
regard, comply with, and obey any and all orders, judgments or decrees entered
or issued by any court, and, in case Escrowee obeys and complies with any such
order, judgment or decree of any court, it shall not be liable to either of the
parties hereto or to any other person, firm or corporation by reason of such
compliance.

7.             Litigation. In the event of litigation between the parties
with respect to these Instructions, the performance of their respective
obligations hereunder, or the effect of a termination under the Agreement or
these Instructions, the losing party shall pay all costs and expenses incurred
by the prevailing party in connection with such litigation, including, but not
limited to, court costs and reasonable fees of counsel selected by the
prevailing party. Notwithstanding any provision of the Agreement or these
Instructions to the contrary, the obligations of the parties under this Section 7
shall survive a termination of either or both of the Agreement and these
Instructions.

8.             Time of the
Essence. Time is of the essence of these
Instructions. If any date herein set forth for the performance of any
obligations by Seller, Escrowee or Purchaser or for the delivery of any
instrument or notice as herein provided should be on a Saturday, Sunday or
legal holiday, the compliance with such obligations or delivery shall be deemed
acceptable on the next business day following such Saturday, Sunday or legal
holiday.

 B-4
 

 

 

9.             Counterparts. These Instructions may be executed in
counterparts, each of which shall constitute an original, but all of which
together shall constitute one and the same instrument.

SELLER:

FIRST INDUSTRIAL DEVELOPMENT SERVICES, INC.,

a Maryland corporation

By:                                                                                          

Name:                                                                                     

Its:                                                                                          

 

PURCHASER:

SIMPSON MANUFACTURING CO. INC.,
a Delaware corporation

By:                                                                                          

Name:                                                                                     

Its:                                                                                          

 

ACCEPTED BY
ESCROWEE:

FIRST AMERICAN TITLE INSURANCE
COMPANY

By:                                                                                          

Name:                                                                                     

Its:                                                                                          

 B-5

 

 

EXHIBIT C

DOCUMENTS

Each
to the extent in the Seller’s possession or reasonable control, except for item
(e) below which shall be delivered only to the extent in Seller’s actual
possession:

(a)           Leases. Copies of all Existing
Leases and copies of any agreements with respect to any commissions due or to
become due from Seller in connection with any such Existing Leases.

(b)           Books and Records. Copies of
the income and expense statements (including tenant rents and CAM recoveries
and reconciliations and expense reports) for the Property prepared by Seller in
the ordinary course of Seller’s business for the last three (3) full years
or any shorter period of Seller’s ownership of the Property (the “Operating Statements”), including the Operating Statement to
the extent prepared for the current year to date.

(c)           Approvals. Copies of all, if
any, of the following:  any licenses and
permits for the Property; copies of any plans and specifications for the
Improvements and a copy of all Certificates of Occupancy.

(d)           Existing Title Policy and Survey.
A copy of the most recent owner’s title insurance policy issued to Seller for
the Land and the Improvements, and a copy of the Survey.

(e)           Environmental Reports. Copies
of existing third party environmental reports prepared on behalf of Seller.

(f)            Tax Bills. Copies of all
property tax assessments and bills for the last (2) years or such shorter
period of time which Seller has owned the Property.

 C-1

 

ESTOPPEL CERTIFICATE

To:                              Simpson
Manufacturing Co., Inc., its successor and assigns; First Industrial
Realty Trust, Inc.; ____________________________; its successors and
assigns; [Title Company]

(Lease to be Attached)

ESTOPPEL CERTIFICATE

The undersigned,
______________________________________ (“Tenant”),
hereby certifies that:

1.             Tenant is
party to that certain lease agreement (“Lease”), dated as of the ____________ day of ________________, 20___, by and
between the undersigned, as tenant (“Tenant”), and ________________________________________________ as landlord (“Landlord”), covering certain [insert type of property] space
(“Premises”) in the building located at
_____________________ (“Building”). The
net rentable square footage of the Premises is ________________________.

2.             The Lease is valid and in full force and effect on
the date hereof. The term of the Lease commenced on ____________, 20___, and
the termination date of the present term of the Lease, excluding renewals, is
__________________, 20___.

3.             There are no other agreements between Landlord and
Tenant with respect to the Premises.

4.             There are no uncured defaults on the part of Tenant
or on the part of Landlord under the Lease, and, to Tenant’s actual knowledge,
no event has occurred and no condition exists which, with the giving of notice
or the lapse of time, or both, will constitute a default under the Lease.

5.             Fixed or base rent payable by Tenant presently is
$______________ per month and no such rent has been paid more than 30 days in advance
of its due date. Tenant’s security deposit is $_______________.

6.             Tenant’s Share of the Building is _______.
Additional rent (including Tenant’s share of tax increases and cost of living
increases) payable by Tenant presently is $______________ per month and no such
rent has been paid more than 30 days in advance of its due date.

7.             Tenant claims no present charge, lien or claim of
offset under the Lease or otherwise, against rents or other charges due or to
become due thereunder.

 D-1
 

 

8.             Tenant has accepted possession of the Premises and
any improvements required by the terms of the Lease to be made by the lessor
thereunder have been completed to the satisfaction of Tenant.

9.             The address for notices to be sent to Tenant is as
set forth in the Lease.

10.           This Estoppel Certificate may be relied upon by any
prospective purchaser or encumbrance of the Building.

11.           Tenant has no right of first refusal, option or
other right to purchase the Premises or the Building, nor does Tenant have any
right to unilaterally cancel the Lease, except as set forth in Section ____
of the Lease.

12.           Tenant has no renewal options or expansion options,
except as expressly provide in Section _____ of the Lease.

IN WITNESS
WHEREOF, the undersigned has
executed and delivered this Estoppel Certificate on the ___________ day of
______________, 20___.

_______________________________

(Tenant)

By:                                                                                          

Title:                                                                                       

 D-2

 

EXHIBIT E

ASSIGNMENT
AND ASSUMPTION OF LEASES

THIS ASSIGNMENT AND
ASSUMPTION OF LEASES AND SECURITY DEPOSITS (the “Assignment”) is made and
entered into this ____ day of __________, 20__ by and between                                                                                                    (“Assignor”),
and                                                                                                 (“Assignee”).

R E C I T A L S:

WHEREAS, Assignor and
Assignee entered into that certain Agreement of Purchase and Sale, dated
_______________, 20___, and as amended from time to time (as amended, the “Agreement”), for the purchase and sale of the building
commonly known by the street address                                                                                                                                 (the
“Premises”); and

WHEREAS, in connection
with the consummation of the transaction contemplated under the Agreement,
Assignor and Assignee desire to execute this Assignment.

NOW, THEREFORE, in
consideration of good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties agree as follows:

1.             Recitals. The foregoing
recitals are hereby incorporated in the body of this Assignment as if fully
rewritten and restated herein.

2.             Assignment of Leases. Assignor
hereby sells, transfers and assigns to Assignee all of its right, title and
interest in and to those certain leases presently existing and described in Exhibit A attached hereto (collectively, the “Leases”) and
any and all guaranties made in connection with the Leases, subject, however, to
the terms, covenants and conditions of the Leases and this Assignment. Notwithstanding
the foregoing, however, Assignor nevertheless retains, on a nonexclusive basis,
the benefit and protection of any indemnity(ies) provided by the tenants under
the Leases for the benefit of the landlord.

3.             Assignment of Security Deposits.
Assignor hereby sells, transfers and assigns to Assignee all of its right,
title and interest in and to those security deposits required to be held by
Seller pursuant to the Leases, and identified on Exhibit B attached hereto
and made a part hereof (collectively, the “Security Deposits”).

4.             Assumption of Obligations. Assignee
hereby accepts the assignment of the Leases, the rents due thereunder and the
Security Deposits subject to the terms and conditions hereof, and from and
after the date hereof, Assignee hereby assumes and shall be responsible for and
shall perform all of those obligations imposed on the lessor or landlord under
the Leases, which obligations first accrue after the date hereof (the “Closing”).

5.             Assignee’s Indemnification. Assignee
hereby indemnifies, protects, defends and holds Assignor, Assignor’s
_____________, the partners, officers, directors and shareholders of Assignor’s
___________, and their respective successors, and assigns, harmless from any
and all claims, damages, losses, suits, proceedings, costs and expenses,
including, without 

 E-1
 

 

limitation,
reasonable attorneys’ fees (collectively, “Losses”), both known or unknown,
present and future, at law or in equity, arising out of, by virtue of or in any
way related to the breach by Assignee of (or Assignee’s failure to timely
perform) any or all of the obligations imposed on the lessor or the landlord
under the Leases, which obligations accrue from and after the date of the
Closing.

6.             Assignor’s Indemnification. Assignor
hereby indemnifies, protects, defends and holds Assignee, Assignee’s ___________, the partners, officers,
directors and shareholders of Assignee’s _____________ and all of their
respective successors and assigns harmless from any and all Losses, both known
and unknown, present and future, at law or in equity and arising out of, by
virtue of, or related in any way to, the breach by Assignor of (or Assignor’s
failure to timely perform) any or all of the obligations imposed on the lessor
or the landlord under the Leases, which obligations accrue on or prior to the
date of the Closing.

7.             Counterparts. This
Assignment may be executed in one or more identical counterparts, all of which,
when taken together shall constitute one and the same instrument.

8.             Governing Law. This
Assignment shall be governed by and construed in accordance with the laws of
the State of Tennessee.

9.             Attorney’s Fees  In the event of any action or proceeding
between Assignor and Assignee to enforce any provision of this Assignment, the
losing party shall pay to the prevailing party all costs and expenses,
including, without limitation, reasonable attorneys’ fees and expenses, incurred
in such action and in any appeal in connection therewith by such prevailing
party. The “prevailing party” will be determined by the court before whom the
action was brought.

10.           Partial Invalidity. The
provisions hereof shall be deemed independent and severable, and the invalidity
or enforceability of any one provision shall not affect the validity or
enforceability of any other provision hereof.

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

 E-2
 

 

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

	
   

  	
  ASSIGNOR:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Its:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ASSIGNEE:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Its:

  	
   

  

 

 E-3

 

EXHIBIT F

ASSIGNMENT AND ASSUMPTION
OF INTANGIBLES

THIS ASSIGNMENT AND ASSUMPTION OF
INTANGIBLES (the “Assignment”)
is made and entered into this ____ day of ___________, 20__, by and between                                                                                                             (“Assignor”), and                                                                                                                                (“Assignee”).

R E C I T A L S:

WHEREAS, Assignor and
Assignee entered into that certain Agreement of Purchase and Sale, dated
_________________, 20___, and as amended from time to time (as amended, the “Agreement”), for the purchase and sale of                                                                                                     (the “Premises”);
and

WHEREAS, in connection
with the consummation of the transactions contemplated under the Agreement,
Assignor and Assignee desire to execute this Assignment.

NOW, THEREFORE, in
consideration of good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties agree as follows:

1.             Recitals; Defined Terms. The
foregoing recitals are hereby incorporated into this Agreement as if fully
rewritten and restated in the body of this Assignment. Capitalized terms used
herein and not otherwise defined shall have the meanings respectively ascribed
to them in the Agreement.

2.             Assignment of Intangibles. Assignor
hereby quitclaims unto Assignee, without recourse, representation or warranty
of any kind whatsoever, all of Assignor’s right, title and interest (if any) in
and to all, if any, Intangibles relating to the Premises. Such Intangibles are
quitclaimed by Assignor to Assignee on an “AS-IS,” “WHERE-IS,” “WITH ALL FAULTS”
basis, and without any warranties, representations or guaranties, either express
or implied, of any kind, nature or type whatsoever, except the foregoing shall
be without limitation upon any representations and warranties expressly
contained in the Agreement.

3.             Assumption of Obligations. Assignee
hereby accepts the assignment of the Intangibles subject to the terms and
conditions hereof, and from and after the date hereof.

4.             Counterparts. This
Assignment may be executed in one or more multiple counterparts, all of which,
when taken together shall constitute one and the same instrument.

5.             Governing Law. This
Assignment shall be governed by and construed in accordance with the laws of
the State of Tennessee

6.             In the event of any action or proceeding between
Assignor and Assignee to enforce any provision of this Assignment, the losing
party shall pay to the prevailing party all costs and expenses, including,
without limitation, reasonable attorneys’ fees and expenses, incurred in 

 F-1
 

 

such
action and in any appeal in connection therewith by such prevailing party. The “prevailing
party” will be determined by the court before whom the action was brought.

7.             Partial Invalidity. The provisions hereof shall be deemed independent and severable, and
the invalidity or enforceability of any one provision shall not affect the
validity or enforceability of any other provision hereof.

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

 F-2
 

 

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

	
   

  	
  ASSIGNOR:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Its:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ASSIGNEE:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Its:

  	
   

  

 

 F-3

 

EXHIBIT G

INTENTIONALLY
OMITTED

 

 G-1

 

EXHIBIT H

DEED

This instrument prepared
by:

Jeffrey S. Rinkov, Esq.

Barack Ferrazzano Kirschbaum Perlman & Nagelberg LLP

333 West Wacker Drive, Suite 2700

Chicago, Illinois 60606

SPECIAL

WARRANTY
DEED

	
  ADDRESS NEW
  OWNER(s) AS FOLLOWS:

  	
  SEND TAX BILLS
  TO:

  	
  MAP PARCEL
  NUMBERS

  
	
   

   

  	
   

  	
  Map _____

  Parcel _____

  

 

FOR AND IN CONSIDERATION of the sum of Ten dollars
and no/100 ($10.00), cash in hand paid by the Grantee and other good and
valuable considerations accepted as cash, the receipt and sufficiency of which
is hereby acknowledged, First Industrial Development Services, Inc., a
Maryland corporation, as Grantor, has this day bargained and sold, and does
hereby transfer and convey unto ________________________________,, the Grantee
herein, its successors, heirs, and assigns, certain real estate in
_____________ County, Tennessee as described on Exhibit A attached
hereto and made a part hereof.

 

	
  STATE OF
  ___________________

  COUNTY OF _________________

  I,
  the undersigned, hereby affirm that to the best of my knowledge, information
  and belief, the actual consideration for this transfer or value of the
  property transferred, whichever is greater, is $_________________, which
  amount is equal to or greater than the amount which the property transferred
  would command at a fair and voluntary sale.

  Subscribed
  and sworn to before me this the _____ day of ____________, 200_

                                                                                                                                                                                  
                                                                                                Affiant

  My
  commission expires: 
  _____________________                                                                                                  
                                                (Affix
  Seal)                            Notary
  Public 

  

 

 H-1
 

 

This is
unimproved (  ) improved (X ) property, known
as ________________,__________________, Tennessee.

TO HAVE
AND TO HOLD said real estate, with the appurtenance, estate, title and interest
thereto belonging, to the Grantee, its successors, heirs and assigns forever we
covenant that we are lawfully seized and possessed of said real estate in fee
simple, have a good right to convey it, and that the same is unencumbered,
except for those encumbrances set forth on Exhibit B attached
hereto.

We
further covenant and bind ourselves, our heirs and representatives, to warrant
and forever defend the title to said real estate to said Grantee, its
successors, heirs and assigns, against the lawful claims of all persons,
claiming by, through or under the Grantor.

Whenever
used, the singular number shall include the plural, the plural the singular and
the use of any gender shall be applicable to all genders.

[Signature
Page Follows]

 H-2
 

 

 

	
   

  	
  Signature Page

  
	
   

  	
   

  	
   

  
	
   

  	
  FIRST
  INDUSTRIAL DEVELOPMENT SERVICES, INC., a Maryland
  corporation

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Its:

  	
   

  

 H-3
 

 

STATE OF                                            

COUNTY OF                                        

Before
me, the undersigned Notary Public in and for the State and County aforesaid,
personally appeared _____________________________________, with whom I am
personally acquainted, or proved to me on the basis of satisfactory evidence,
and who, upon his/her oath, acknowledged himself/herself to be the
___________________ of First Industrial Development Services, Inc., a
Maryland corporation, the within named grantor, and that he/she, as such
manager, being authorized so to do, executed the foregoing instrument for the
purposes therein contained by signing the name of the corporation by
himself/herself as such manager as his/her free act and deed.

Witness my hand
and official seal, at office in                                                                                               ,
this                        day of _______________, 200_.

 

	
  

  	
   

  
	
   

  	
  Notary Public

  

 

My Commission
Expires:                                    

(Seal)

Return to:

 

 H-4

 

EXHIBIT A

 H-5

 

EXHIBIT B

Permitted Exceptions

 H-6Exhibit 10.1

 

 

 

 

 

FRIENDLY
ICE CREAM CORPORATION

2003
INCENTIVE PLAN

 

Effective
as of March 30, 2003

As
Amended on July 23, 2003, and on May 10, 2006

 

FRIENDLY ICE CREAM CORPORATION

2003 INCENTIVE PLAN

SECTION 1

GENERAL

1.1                                 Purpose. The Friendly Ice Cream Corporation 2003
Incentive Plan (the “Plan”) has been established by Friendly Ice Cream
Corporation (the “Company”) to (i) attract and retain persons eligible to
participate in the Plan; (ii) motivate Participants, by means of
appropriate incentives, to achieve long-range goals; (iii) provide
incentive compensation opportunities that are competitive with those of other
similar companies; and (iv) further align Participants’ interests with
those of the Company’s other shareholders through compensation that is based on
the growth in value of the Company’s equity and achievement of factors that
contribute to the enhancement of long-term shareholder return.

1.2                                 Participation. Subject to the terms and
conditions of the Plan, the Committee shall determine and designate, from time
to time, from among the Eligible Individuals (including transferees of Eligible
Individuals to the extent the transfer is permitted by the Plan and the
applicable Award Agreement), those persons who will be granted one or more
Awards under the Plan, and thereby become “Participants” in the Plan.

1.3                                 Operation, Administration, and Definitions. The
operation and administration of the Plan, including the Awards made under the
Plan, shall be subject to the provisions of Section 5 (relating to
operation and administration). Capitalized terms in the Plan shall be defined
as set forth in the Plan (including the definition provisions of Section 8).

SECTION 2

OPTIONS AND SARS

2.1           Definitions.

(a)                                  The
grant of an “Option” entitles the Participant to purchase shares of Stock at an
Exercise Price established by the Committee. Any Option granted under this Section 2
may be either an incentive stock option (an “ISO”) or a non-qualified option
(an “NQO”), as determined in the discretion of the Committee. An “ISO” is an
Option that is intended to satisfy the requirements applicable to an “incentive
stock option” described in section 422(b) of the Code. An ISO may only be
granted to an Employee. An “NQO” is an Option that is not intended to be an “incentive
stock option” as that term is described in section 422(b) of the Code.

 

(b)                                 A
stock appreciation right (an “SAR”) entitles the Participant to receive, in
cash or Stock (as determined in accordance with subsection 2.5), value equal to
(or otherwise based on) the excess of: (a) the Fair Market Value of a
specified number of shares of Stock at the time of exercise; over (b) an
Exercise Price established by the Committee.

2.2                                 Exercise Price. The “Exercise Price” of each
Option and SAR granted under this Section 2 shall be established by the
Committee or shall be determined by a method established by the Committee at
the time the Option or SAR is granted; provided that the Exercise Price shall
not be less than 100% of the Fair Market Value of a share of Stock on the date
of grant (or, if greater, the par value of a share of Stock).

2.3                                 Exercise. An Option and an SAR shall be
exercisable in accordance with such terms and conditions and during such
periods as may be established by the Committee.

2.4                                 Payment of Option Exercise Price. The payment of
the Exercise Price of an Option granted under this Section 2 shall be
subject to the following:

(a)                                  Subject
to the following provisions of this subsection 2.4, the full Exercise Price for
shares of Stock purchased upon the exercise of any Option shall be paid at the
time of such exercise (except that, in the case of an exercise arrangement
approved by the Committee and described in paragraph 2.4(c), payment may be
made as soon as practicable after the exercise).

(b)                                 The
Exercise Price shall be payable in cash, by promissory note (if permitted by
law), or by tendering, by either actual delivery of shares or by attestation, shares
of Stock acceptable to the Committee, and valued at Fair Market Value as of the
day of exercise, or in any combination thereof, as determined by the Committee.

(c)                                  The
Committee may permit a Participant to elect to pay the Exercise Price upon the
exercise of an Option by irrevocably authorizing a third party to sell shares
of Stock (or a sufficient portion of the shares) acquired upon exercise of the
Option and remit to the Company a sufficient portion of the sale proceeds to
pay the entire Exercise Price and any tax withholding resulting from such
exercise.

2.5                                 Settlement of Award. Settlement of Options and
SARs is subject to subsection 4.7.

2.6                                 Repricing. Except for either adjustments pursuant
to paragraph 4.2(f) (relating to the adjustment of shares), or decreases
approved by the Company’s stockholders, the Exercise Price for any outstanding
Option granted under the Plan may not be decreased after the date of grant nor
may an outstanding Option granted under the Plan be surrendered to the Company
as consideration for the grant of a new Option with a lower exercise price in a
transaction which would constitute a repricing for accounting purposes.

 2
 

 

SECTION 3

OTHER AWARDS

3.1                                 Definitions.

(a)                                  A
“Bonus Stock” Award is a grant of shares of Stock in return for previously
performed services, or in return for the Participant surrendering rights to
other compensation that may be due.

(b)                                 A
“Stock Unit” Award is the grant of a right to receive shares of Stock in the
future.

(c)                                  A
“Performance Share” Award is a grant of a right to receive shares of Stock or
Stock Units which is contingent on the achievement of performance or other
objectives during a specified period.

(d)                                 A
“Performance Unit” Award is a grant of a right to receive a designated dollar
value which is contingent on the achievement of performance or other objectives
during a specified period, the settlement of which may be in the form of cash,
Stock or any combination thereof.

(e)                                  A
“Restricted Stock” Award is a grant of shares of Stock, and a “Restricted Stock
Unit” Award is the grant of a right to receive shares of Stock in the future,
with such shares of Stock or right to future delivery of such shares of Stock
subject to a risk of forfeiture or other restrictions that will lapse upon the
achievement of one or more goals relating to completion of service by the
Participant, or achievement of performance or other objectives, as determined
by the Committee.

3.2                                 Restrictions on Awards. Each Bonus Stock Award,
Stock Unit Award, Restricted Stock Award, Restricted Stock Unit Award,
Performance Share Award, and Performance Unit Award shall be subject to the
following:

(a)                                  Any
such Award shall be subject to such conditions, restrictions and contingencies
as the Committee shall determine.

(b)                                 The
Committee may designate whether any such Award being granted to any Participant
is intended to be “performance-based compensation” as that term is used in
section 162(m) of the Code. Any such Awards designated as intended to be “performance-based
compensation” shall be conditioned on the achievement of one or more
Performance Measures, to the extent required by Code section 162(m). The
Performance Measures shall be established in writing by the Committee not later
than 90 days after the beginning of the performance period (but in no event
after 25% of the performance period has elapsed), and while the outcome as to
the performance goals is substantially uncertain. The performance goals
established by the Committee may be with respect to corporate performance,
operating group or sub-group performance, individual company performance, other
group or individual performance, or division performance, 

 3
 

                                                shall
be based on one or more of the Performance Measures, may be measured gross or
net and may be on a total or per share basis. The “Performance Measures” that
may be used by the Committee for such Awards shall be based on any one or more
of the following, as selected by the Committee: earnings (e.g., earnings before
income taxes, or “EBIT”; earnings before income taxes, depreciation and
amortization, or “EBITDA”; earnings per share, or “EPS”), financial return
ratios (e.g., return on investment, or “ROI”; return on invested capital, or “ROIC”;
return on equity, or “ROE”), revenue, operating or net cash flows, total
shareholder return, market share, operating income or net income, debt load
reduction, expense management, stock price and strategic business objectives,
consisting of one or more objectives based on meeting specific cost targets,
business expansion goals and goals relating to acquisitions or divestitures.

(c)                                  For
Awards under this Section 3 which are intended to be “performance-based
compensation,” the grant of the Awards and the establishment of the Performance
Measures shall be made during the period required under Code section 162(m).

(d)                                 If
the right to become vested in a Restricted Stock Award or Restricted Stock Unit
Award granted under this Section 3 is conditioned on the completion of a
specified period of service with the Company or the Subsidiaries, without achievement
of Performance Measures or other performance objectives being required as a
condition of vesting, and without it being granted in lieu of other
compensation, then the required period of service for full vesting shall be not
less than three years (subject to acceleration of vesting, to the extent
permitted by the Committee, in the event of a change in control or the
Participant’s death, disability, retirement, or involuntary termination).

(e)                                  Upon
the occurrence of significant events or changes that occur during the
performance period, the Committee shall have the sole discretion to determine
whether any revision to the Performance Measures should be made; provided,
however, that if the Award is intended to satisfy the requirements for “performance-based
compensation,” any such revisions occurring after the establishment of the
Performance Measures may not result in an increase in the amount of settlement
of the Award.

(f)                                    Except
as otherwise provided by the Committee, if a Participant’s employment terminates
because of death or disability, or if a Change in Control occurs prior to the
Participant’s termination of employment, the Participant’s Performance Unit
Award shall become vested without regard to whether such Award would be
performance-based compensation, based on a target level performance, or as
otherwise provided by the Committee in the Award Agreement.

(g)                                 Nothing
in this Section 3 shall preclude the Committee, the Company, or any
Subsidiary from granting performance Awards that are not intended to be “performance-based
compensation”; provided, however, that, at the time of grant of performance
Awards by the Committee, the Committee shall designate whether such amounts are
intended to constitute “performance-based compensation.”  To 

 4
 

                                                the extent
that the provisions of this Section 3 reflect the requirements applicable
to performance-based compensation, such provisions shall not apply to the
portion of the award, if any, which is not intended to satisfy the
performance-based compensation requirements.

SECTION 4

OPERATION AND
ADMINISTRATION

4.1                                 Effective Date. Pursuant to the approval of the
shareholders of the Company at the Company’s 2003 annual meeting of its
shareholders, the Plan became effective as of March 30, 2003 (the “Effective
Date”). The Plan shall be unlimited in duration and, in the event of Plan
termination, shall remain in effect as long as any Awards under it are
outstanding; provided, however, that no Awards may be granted under the Plan
after the ten-year anniversary of the Effective Date (except for Awards granted
pursuant to commitments entered into prior to such ten-year anniversary).

4.2                                 Shares Subject to Plan. The shares of Stock for
which Awards may be granted under the Plan shall be subject to the following:

(a)                                  The
shares of Stock with respect to which Awards may be made under the Plan shall
be shares currently authorized but unissued or currently held or, to the extent
permitted by applicable law, subsequently acquired by the Company as treasury
shares, including shares purchased in the open market or in private
transactions.

(b)                                 Subject
to the following provisions of this subsection 4.2, the maximum number of
shares of Stock that may be delivered to Participants and their beneficiaries
under the Plan shall be 607,000 shares of Stock.

(c)                                  To
the extent provided by the Committee, any Award may be settled in cash rather
than Stock. To the extent any shares of Stock covered by an Award are not
delivered to a Participant or beneficiary because the Award is forfeited or
canceled, or the shares of Stock are not delivered because the Award is settled
in cash or used to satisfy the applicable tax withholding obligation, such
shares shall not be deemed to have been delivered for purposes of determining
the maximum number of shares of Stock available for delivery under the Plan.

(d)                                 If
the exercise price of any stock option granted under the Plan is satisfied by
tendering shares of Stock to the Company (by either actual delivery or by
attestation), only the number of shares of Stock issued net of the shares of
Stock tendered shall be deemed delivered for purposes of determining the
maximum number of shares of Stock available for delivery under the Plan.

(e)                                  Subject
to paragraph 4.2(f), the following additional maximums are imposed under the
Plan.

 5
 

 

(i)       
The maximum number of shares of Stock that may be issued pursuant to
Options intended to be ISOs shall be 607,000 shares.

(ii)      
The maximum number of shares that may be covered by Awards granted to
any one individual pursuant to Section 2 (relating to Options and SARs)
shall be 150,000 shares during any calendar
year. If an Option is in tandem with an SAR, such that the exercise of the
Option or SAR with respect to a share of Stock cancels the tandem SAR or Option
right, respectively, with respect to such share, the tandem Option and SAR
rights with respect to each share of Stock shall be counted as covering but one
share of Stock for purposes of applying the limitations of this paragraph (ii).

(iii)    
The maximum number of shares of Stock that may be issued in conjunction
with Awards granted pursuant to Section 3 (relating to Other Stock Awards)
shall be 150,000 shares.

(iv)     
For Bonus Stock Awards, Stock Unit Awards, Restricted Stock Awards,
Restricted Stock Unit Awards and Performance Share Awards that are intended to
be “performance-based compensation” (as that term is used for purposes of Code
section 162(m)), no more than 75,000 shares of stock may be subject to such
Awards granted to any one individual during any calendar year. If, after shares
have been earned, the delivery is deferred, any additional shares attributable
to dividends during the deferral period shall be disregarded.

(v)       
For Performance Unit Awards that are intended to be “performance-based
compensation” (as that term is used for purposes of Code section 162(m)), no
more than $3,000,000 may be subject to such Awards granted to any one
individual during any calendar year. If, after amounts have been earned with
respect to Performance Unit Awards, the delivery of such amounts is deferred,
any additional amounts attributable to earnings on deferred amounts during the
deferral period shall be disregarded.

(vi)                              The
maximum number of shares that may be covered by Awards granted to any one
individual non-employee director pursuant to Section 2 (relating to
Options and SARs) shall be 75,000 shares during any calendar year and the
maximum number of shares that may be covered by Awards granted to any one
individual non-employee director pursuant to Section 3 (relating to Other
Stock Awards) shall be 37,500 shares during any calendar year.

(f)                                    In
the event of a corporate transaction involving the Company (including, without
limitation, any stock dividend, stock split, reverse stock split, extraordinary
cash dividend, recapitalization, reorganization, merger, consolidation,
split-up, spin-off, combination or exchange of shares), the Committee may
adjust Awards to preserve the benefits or potential benefits of the Awards.
Action by the 

 6
 

                                                Committee
may include: (i) adjustment of the number and kind of shares which may be
delivered under the Plan; (ii) adjustment of the number and kind of shares
subject to outstanding Awards; (iii) adjustment of the Exercise Price of
outstanding Options and SARs; and (iv) any other adjustments that the
Committee determines to be equitable (which may include, without limitation, (I) replacement
of Awards with other Awards which the Committee determines have comparable
value and which are based on stock of a company resulting from the transaction,
and (II) cancellation of the vested and unvested portion of such Award in
return for cash payment of the current value of Award, determined as though the
Award is fully vested at the time of payment, provided that in the case of an
Option, the amount of such payment may be the excess of value of the Stock
subject to the Option at the time of the transaction over the exercise price).

4.3                                 General Restrictions. Delivery of shares of Stock
or other amounts under the Plan shall be subject to the following:

(a)                                  Notwithstanding
any other provision of the Plan, the Company shall have no liability to deliver
any shares of Stock under the Plan or make any other distribution of benefits
under the Plan unless such delivery or distribution would comply with all
applicable laws (including, without limitation, the requirements of the
Securities Act of 1933), and the applicable requirements of any securities
exchange or similar entity.

(b)                                 To
the extent that the Plan provides for issuance of stock certificates to reflect
the issuance of shares of Stock, the issuance may be effected on a
non-certificated basis, to the extent not prohibited by applicable law or the
applicable rules of any stock exchange.

4.4                                 Tax Withholding. All distributions under the Plan
are subject to withholding of all applicable taxes, and the Committee may
condition the delivery of any shares or other benefits under the Plan on
satisfaction of the applicable withholding obligations. Except as otherwise
provided by the Committee, such withholding obligations may be satisfied (i) through
cash payment by the Participant (or by such third party as may be permitted in Section 2.4(c));
(ii) through the surrender of shares of Stock which the Participant
already owns (provided, however, that to the extent shares described in this
clause (ii) are used to satisfy more than the minimum statutory
withholding obligation, as described below, then, except as otherwise provided
by the Committee, payments made with shares of Stock in accordance with this
clause (ii) above shall be limited to shares held by the Participant for
not less than six months prior to the payment date); or (iii) through the
surrender of shares of Stock to which the Participant is otherwise entitled
under the Plan; provided, however, that such shares under this clause (iii) may
be used to satisfy not more than the Company’s minimum statutory withholding
obligation (based on minimum statutory withholding rates for Federal and state
tax purposes, including payroll taxes, that are applicable to such supplemental
taxable income).

4.5                                 Grant and Use of Awards. In the discretion of the
Committee, a Participant may be granted any Award permitted under the
provisions of the Plan, and more than one Award 

 7
 

                                                may be
granted to a Participant. Awards may be granted as alternatives to or
replacement of awards granted or outstanding under the Plan, or any other plan
or arrangement of the Company or a Subsidiary (including a plan or arrangement
of a business or entity, all or a portion of which is acquired by the Company
or a Subsidiary). Subject to the overall limitation on the number of shares of
Stock that may be delivered under the Plan, the Committee may use available
shares of Stock as the form of payment for compensation, grants or rights
earned or due under any other compensation plans or arrangements of the Company
or a Subsidiary, including the plans and arrangements of the Company or a
Subsidiary assumed in business combinations.

4.6                                 Dividends and Dividend Equivalents. An Award
(including without limitation an Option or SAR Award) may provide the
Participant with the right to receive dividend payments or dividend equivalent
payments with respect to Stock subject to the Award (both before and after the
Stock subject to the Award is earned, vested, or acquired), which payments may
be either made currently or credited to an account for the Participant, and may
be settled in cash or Stock, as determined by the Committee. Any such
settlements, and any such crediting of dividends or dividend equivalents or
reinvestment in shares of Stock, may be subject to such conditions,
restrictions and contingencies as the Committee shall establish, including the
reinvestment of such credited amounts in Stock equivalents.

4.7                                 Settlement of Awards. The obligation to make
payments and distributions with respect to Awards may be satisfied through cash
payments, the delivery of shares of Stock, the granting of replacement Awards,
or any combination thereof as the Committee shall determine. Satisfaction of
any such obligations under an Award, which is sometimes referred to as “settlement”
of the Award, may be subject to such conditions, restrictions and contingencies
as the Committee shall determine. The Committee may permit or require the
deferral of any Award payment, subject to such rules and procedures as it
may establish, which may include provisions for the payment or crediting of
interest or dividend equivalents, and may include converting such credits into
deferred Stock equivalents. Each Subsidiary shall be liable for payment of cash
due under the Plan with respect to any Participant to the extent that such
benefits are attributable to the services rendered for that Subsidiary by the
Participant. Any disputes relating to liability of a Subsidiary for cash
payments shall be resolved by the Committee.

4.8                                 Transferability. Except as otherwise provided by
the Committee, Awards under the Plan are not transferable except as designated
by the Participant by will or by the laws of descent and distribution.

4.9                                 Form and Time of Elections. Unless otherwise
specified herein, each election required or permitted to be made by any
Participant or other person entitled to benefits under the Plan, and any
permitted modification, or revocation thereof, shall be in writing filed with
the Committee at such times, in such form, and subject to such restrictions and
limitations, not inconsistent with the terms of the Plan, as the Committee
shall require.

4.10                           Agreement With Company. An Award under the Plan
shall be subject to such terms and conditions, not inconsistent with the Plan,
as the Committee shall, in its sole discretion, prescribe. The terms and
conditions of any Award to any Participant shall be reflected in

 8

 

 

                                                such
form of written document as is determined by the Committee. A copy of such
document shall be provided to the Participant, and the Committee may, but need
not, require that the Participant sign a copy of such document. Such document
is referred to in the Plan as an “Award Agreement” regardless of whether any
Participant signature is required.

4.11                           Action by Company or Subsidiary. Any action
required or permitted to be taken by the Company or any Subsidiary shall be by
resolution of its board of directors, or by action of one or more members of
the board (including a committee of the board) who are duly authorized to act
for the board, or (except to the extent prohibited by applicable law or
applicable rules of any stock exchange) by a duly authorized officer of
such company.

4.12                           Gender and Number. Where the context admits,
words in any gender shall include any other gender, words in the singular shall
include the plural and the plural shall include the singular.

4.13                           Limitation of Implied Rights.

(a)                                  Neither
a Participant nor any other person shall, by reason of participation in the
Plan, acquire any right in or title to any assets, funds or property of the
Company or any Subsidiary whatsoever, including, without limitation, any
specific funds, assets, or other property which the Company or any Subsidiary,
in its sole discretion, may set aside in anticipation of a liability under the
Plan. A Participant shall have only a contractual right to the Stock or
amounts, if any, payable under the Plan, unsecured by any assets of the Company
or any Subsidiary, and nothing contained in the Plan shall constitute a
guarantee that the assets of the Company or any Subsidiary shall be sufficient
to pay any benefits to any person.

(b)                                 The
Plan does not constitute a contract of employment, and selection as a
Participant will not give any participating employee the right to be retained
in the employ of the Company or any Subsidiary, nor any right or claim to any
benefit under the Plan, unless such right or claim has specifically accrued
under the terms of the Plan. Except as otherwise provided in the Plan, no Award
under the Plan shall confer upon the holder thereof any rights as a shareholder
of the Company prior to the date on which the individual fulfills all
conditions for receipt of such rights and is issued shares.

4.14                           Evidence. Evidence required of anyone under the
Plan may be by certificate, affidavit, document or other information which the
person acting on it considers pertinent and reliable, and signed, made or presented
by the proper party or parties.

 9
 

 

 

SECTION 5

CHANGE IN CONTROL

Subject to the provisions
of paragraph 4.2(f) (relating to the adjustment of shares), and except as
otherwise provided in the Plan or the Award Agreement reflecting the applicable
Award:

(a)                                  If
a Participant who is employed by the Company or an Affiliate at the time of a
Change in Control then holds one or more outstanding Options, all such Options
(regardless of whether in tandem with SARs) then held by the Participant shall
become fully exercisable on and after the date of the Change in Control
(subject to the expiration provisions otherwise applicable to the Options), and
any Stock purchased by the Participant under such Option following such Change
in Control shall be fully vested upon exercise.

(b)                                 If
a Participant who is employed by the Company or an Affiliate at the time of a
Change in Control then holds one or more outstanding SARs, all such SARs
(regardless of whether in tandem with Options) then held by the Participant
shall become fully exercisable on and after the date of the Change in Control
(subject to the expiration provisions otherwise applicable to the SARs), and
any cash or stock acquired by the Participant under such SAR following such
Change in Control shall be fully vested upon exercise.

(c)                                  If
a Participant who is employed by the Company or an Affiliate at the time of a
Change in Control then holds one or more shares of Bonus Stock, Stock Units,
Restricted Stock, Restricted Stock Units, Performance Shares, or Performance
Units, all such Bonus Stock, Restricted Stock, Performance Shares, and units
shall become fully vested on the date of the Change in Control; provided that,
if the amount of the award or the vesting is to be determined based on the
level of performance achieved, the target level of performance shall be deemed
to have been achieved.

SECTION 6

COMMITTEE

6.1                                 Administration. The authority to control and
manage the operation and administration of the Plan shall be vested in a
committee (the “Committee”) in accordance with this Section 6. The
Committee shall be selected by the Board, and shall consist solely of two or
more members of the Board who are not employees of the Company or any
Subsidiary. If the Committee does not exist, or for any other reason determined
by the Board, the Board may take any action under the Plan that would otherwise
be the responsibility of the Committee.

 10
 

 

 

6.2                                 Powers of Committee. The Committee’s
administration of the Plan shall be subject to the following:

(a)                                  Subject
to the provisions of the Plan, the Committee will have the authority and
discretion to select from among the Eligible Individuals those persons who
shall receive Awards, to determine the time or times of receipt, to determine
the types of Awards and the number of shares covered by the Awards, to
establish the terms, conditions, performance criteria, restrictions, and other
provisions of such Awards, and (subject to the restrictions imposed by Section 7)
to cancel or suspend Awards.

(b)                                 To
the extent that the Committee determines that the restrictions imposed by the
Plan preclude the achievement of the material purposes of the Awards in
jurisdictions outside the United States, the Committee will have the authority
and discretion to modify those restrictions as the Committee determines to be
necessary or appropriate to conform to applicable requirements or practices of
jurisdictions outside of the United States.

(c)                                  The
Committee will have the authority and discretion to interpret the Plan, to
establish, amend, and rescind any rules and regulations relating to the
Plan, to determine the terms and provisions of any Award Agreement made
pursuant to the Plan, and to make all other determinations that may be
necessary or advisable for the administration of the Plan.

(d)                                 Any
interpretation of the Plan by the Committee and any decision made by it under
the Plan is final and binding on all persons.

(e)                                  In
controlling and managing the operation and administration of the Plan, the
Committee shall take action in a manner that conforms to the articles and
by-laws of the Company, applicable state corporate law and applicable stock
exchange requirements.

6.3                                 Delegation by Committee. Except to the extent
prohibited by applicable law or the applicable rules of a stock exchange,
the Committee may allocate all or any portion of its responsibilities and
powers to any one or more of its members and may delegate all or any part of
its responsibilities and powers to any person or persons selected by it. Any
such allocation or delegation may be revoked by the Committee at any time.

6.4                                 Information to be Furnished to Committee. The
Company and Subsidiaries shall furnish the Committee with such data and
information as it determines may be required for it to discharge its duties.
The records of the Company and Subsidiaries as to an employee’s or Participant’s
employment, termination of employment, leave of absence, reemployment and
compensation shall be conclusive on all persons unless determined to be
incorrect. Participants and other persons entitled to benefits under the Plan
must furnish the Committee such evidence, data or information as the Committee
considers desirable to carry out the terms of the Plan.

 11
 

 

 

SECTION 7

AMENDMENT AND
TERMINATION

The Board may, at any
time, amend or terminate the Plan, and may amend any Award Agreement, provided,
that no amendment or termination may, in the absence of written consent to the
change by the affected Participant (or, if the Participant is not then living,
the affected beneficiary), adversely affect the rights of any Participant or
beneficiary under any Award granted under the Plan prior to the date such
amendment is adopted by the Board; further provided, that adjustments pursuant
to paragraph 4.2(f) shall not be subject to the foregoing limitations of
this Section 7; and further provided, that no amendment may (i) remove
the provisions of subsection 2.6 (relating to Option repricing), (ii) materially
increase the benefits accruing to Participants under the Plan, (iii) materially
increase the number of securities which may be issued under the Plan, or (iv) materially
modify the requirements for participation in the Plan, unless the amendment is
approved by the Company’s stockholders.

SECTION 8

DEFINED TERMS

In addition to the other
definitions contained herein, the following definitions shall apply:

(a)                                  Award. The term “Award” means any award or
benefit granted under the Plan, including, without limitation, the grant of
Options, SARs, Bonus Stock Awards, Stock Unit Awards, Restricted Stock Awards,
Restricted Stock Unit Awards, Performance Unit Awards and Performance Share
Awards.

 

(b)                                 Board. The term “Board” means the Board of
Directors of the Company.

 

(c)                                  Change in Control. A “Change in Control” shall be deemed to occur on the earliest of the
existence of one of the following events:

 

(i)                                     any
“person” (as such term is used in Sections 13(d) or 14(d) of the
Exchange Act), other than one or more Permitted Holders (as defined below), is
or becomes the beneficial owner (as defined in Rules 13d-3 and 13d-5
under the Exchange Act), directly or indirectly, of more than 35% of the total
voting power of the Voting Stock (as defined below) of the Company and (ii) the
Permitted Holders “beneficially own” (as defined in Rules 13d-3 and
13d-5 under the Exchange Act), directly or indirectly, in the aggregate a
lesser percentage of the voting power of the Voting Stock of the Company than
such other person and do not have the right or ability by voting power,
contract or otherwise to elect or designate for election a majority of the
Board of Directors of the Company;

 

(ii)                                  individuals
who, as of the date hereof, constitute the Board (as of the date hereof the “Incumbent
Board”) cease for any reason to constitute at least a 

 

 12
 

 

majority of the Board,
provided that any individual becoming a director subsequent to the date hereof
whose election, or nomination for election by the Company’s shareholders, was
approved by a vote of at least a majority of the directors then comprising the
Incumbent Board shall be considered as though such individual were a member of
the Incumbent Board, but excluding, for this purpose, any such individual whose
initial assumption of office is in connection with an actual or threatened
election contest relating to the election of the directors of the Company; or

 

(iii)                               approval by the Company’s shareholders of a
reorganization, merger or consolidation of the Company, in each case, with
respect to which all or substantially all of the individuals and entities who
were the respective beneficial owners of the common stock and voting securities
of the Company immediately prior to such reorganization, merger or
consolidation do not, following such reorganization, merger or consolidation,
beneficially own, directly and indirectly, more than 70% of the then
outstanding shares of common stock or the combined voting power of the then
outstanding voting securities entitled to vote generally in the election of
directors of the corporation resulting from such reorganization, merger or
consolidation, or of a complete liquidation or dissolution of the Company or of
the sale or other disposition of all or substantially all of the assets of the
Company.

 

For
purposes of this subparagraph (c), the term “Permitted Holders” means Donald N.
Smith and/or the Company’s then existing senior management and their respective
Affiliates (as defined under the Exchange Act). The term “Voting Stock” of the
Company means all classes of capital stock of the Company then outstanding and
normally entitled to vote in the election of directors.

(d)                                 Code. The term “Code” means the Internal Revenue
Code of 1986, as amended. A reference to any provision of the Code shall
include reference to any successor provision of the Code.

 

(e)                                  Eligible Individual. The term “Eligible
Individual” means any employee of the Company or a Subsidiary and any
consultant, director or other person providing bona fide services to the
Company or a Subsidiary. An Award may be granted to an employee, in connection
with hiring, retention or otherwise, prior to the date the employee first
performs services for the Company or the Subsidiaries, provided that such
Awards shall not become vested prior to the date the employee first performs
such services.

 

(f)                                    Exchange
Act. The term “Exchange Act” means the Securities Exchange Act of 1934, as
amended.

 

(g)                                 Fair Market Value. For purposes of determining
the “Fair Market Value” of a share of Stock as of any date, the following rules shall
apply:

 

 13
 

 

 

(i)                                     If
the principal market for the Stock is a national securities exchange or the
Nasdaq stock market, then the “Fair Market Value” as of that date shall be the
reported closing price of the Stock on that date on the principal exchange or
market on which the Stock is then listed or admitted to trading.

 

(ii)                                  If
closing prices are not available or if the principal market for the Stock is
not a national securities exchange and the Stock is not quoted on the Nasdaq
stock market, then the “Fair Market Value” as of that date shall be the mean of
the highest bid and lowest asked prices for the Stock on such day as reported
on the Nasdaq OTC Bulletin Board Service or by the National Quotation Bureau,
Incorporated or a comparable service.

 

(iii)                               If
the day is not a business day and, as a result, paragraphs (i) and (ii) next
above are inapplicable, the Fair Market Value of the Stock shall be determined
as of the next earlier business day. If paragraphs (i) and (ii) next
above are otherwise inapplicable, then the Fair Market Value of the Stock shall
be determined in good faith by the Committee.

 

(h)                                 Subsidiary. The term “Subsidiary” means any
company during any period in which it is a “subsidiary corporation” (as that
term is defined in Code section 424(f)) with respect to the Company.

 

(i)                                     Stock. The term “Stock” means shares of common
stock of the Company.

 

 14
 

 

 

SUPPLEMENT A

ELECTIVE DEFERRAL

SECTION 1

DEFERRAL ELECTION

1.1                                 General. A Participant who is otherwise entitled
to receive shares of Stock or a cash payment in settlement of an Award under
the terms of the Plan may elect to defer delivery of all or a portion of such
shares of Stock or such cash, subject to the following terms of this Supplement
A.

 

1.2                                 Deferral Election. An election to defer the
receipt of shares of Stock or a cash payment shall be filed prior to the first
day of the calendar year in which the Stock or cash would otherwise have been
delivered (or the year of vesting of  a
restricted stock Award) to the Participant. The election to defer the delivery
of shares of Stock or a cash payment shall be made on a form as may be
determined by the Committee (the Deferral Election”).

 

SECTION 2

ACCOUNTS

2.1                                 Stock Account. A Stock Account shall be
maintained on behalf of each Participant who elects to defer the distribution
of shares of Stock under this Supplement A, for the period during which
delivery of shares of Stock is deferred. A Participant’s Stock Account shall be
subject to the following adjustments:

 

(a)                                  The
Stock Account will be credited with Share Units equal to the number of shares
of Stock as to which the Participant has elected deferred receipt, with such
Share Units to be credited as of the date on which the shares would otherwise
have been delivered to him in the absence of the deferral.

 

(b)                                 As
of each dividend record date for the Stock following the date any Share Units
are credited to the Participant’s Stock Account, and prior to the date of
distribution of shares of Stock with respect to those Share Units, the
Participant’s Stock Account shall be credited with additional Share Units
(including fractional Share Units) equal to (i) the amount of the dividend
that would be payable with respect to the number of shares of Stock equal to
the number of Share Units credited to the Participant’s Stock Account on the
dividend record date, divided by (ii) the
Fair Market Value of a share of Stock on the date of payment of the dividend.

 

(c)                                  As
of the date of any distribution of shares of Stock with respect to a
Participant’s Stock Account under Section 3 of this Supplement, the Share
Units credited to a 

 

 15
 

 

 

Participant’s Stock
Account shall be reduced by the number of Shares so distributed to the
Participant.

 

2.2                                 Cash Account. A Cash Account shall be maintained
on behalf of each Participant who elects to defer the distribution of cash
under this Supplement A, for the period during which delivery of cash is
deferred. A Participant’s Cash Account shall be credited with a notional rate
of return based upon investment(s) selected by the Committee in its sole
discretion. As of the date of any distribution with respect to a Participant’s
Account under Section 3 of this Supplement, the balance credited to a
Participant’s Account shall be reduced by the amount of the distribution to the
Participant.

 

2.3                                 Statement of Accounts. As soon as practicable
after the end of each Plan Year, the Company shall provide each Participant
having one or more Accounts under the Plan with a statement of the transactions
in his Accounts during that year and his Account balances as of the end of the
year.

 

SECTION 3

DISTRIBUTIONS

3.1                                 General.

(a)                                  Subject
to the terms of this Section 3, a Participant shall specify, as part of
his Deferral Election with respect to Stock Awards, and as part of his Deferral
Election with respect to cash payments, the time of distribution of the amounts
deferred pursuant to such election; provided, however, that distribution of
shares of Stock, and of cash, shall be made in a lump sum not later than the
first anniversary of the date on which the individual ceases to be an Eligible
Individual; and further provided, that, unless otherwise provided for by the
Committee, a Participant may elect only a single date for distribution of all
of his Stock Account and only a single date for distribution of all of his Cash
Account under the Plan, provided that the distribution date for the Participant’s
Stock Account and Cash Account may differ.

 

(b)                                 At
the time of distribution of deferred shares in accordance with the Participant’s
Deferral Election, the Participant shall receive a distribution of shares of
Stock equal to the number of share units credited to his Stock Account
immediately prior to such distribution. If the scheduled distribution date
would otherwise occur after a dividend record date but before the payment of
the dividend, distribution shall be deferred (not more than 30 days) until the
dividend is paid.

 

(c)                                  At
the time of distribution of the Cash Account in accordance with the Participant’s
Deferral Election, the Participant shall receive the amount then credited to
the Participant’s Cash Account as of the date of distribution.

 

(d)                                 In
determining a Participant’s right to distributions of stock under this Section 3,
the vesting provisions of subsection 2.3 of the Plan shall apply to the share
units 

 

 16
 

 

credited to the
Participant’s Stock Account as though each unit represented one share of Stock,
and with all units attributable to payment of dividends being fully vested as
of the date they are credited to the Participant’s Stock Account.

 

(e)                                  Notwithstanding
the foregoing provisions of this Section 3, if any share units are
credited to a Participant’s Stock Account as of the date of a Change in
Control, the Participant shall receive a distribution of shares of Stock equal
to the number of such share units. Such distribution shall be in settlement of
the Participant’s rights to a distribution under this Section 3, provided
that if the record date for a dividend is prior to a Change in Control, but the
dividend payment is to occur after such Change in Control, the additional
shares attributable to such dividends shall be distributed as soon as
practicable thereafter.

 

3.2           Limitation of Implied Rights. Neither
the Participant nor any other person shall, by reason of deferral of shares of
Stock or the deferral of a cash payment, under this Supplement A, acquire any
right in or title to any assets, funds or property of the Company whatsoever
prior to the date such shares or cash are distributed. A Participant shall have
only a contractual right to the shares and cash, if any, distributable under
the Plan, unsecured by any assets of the Company. Nothing contained in the Plan
shall constitute a guarantee by the Company that the assets of the Company
shall be sufficient to provide any benefits to any person. The Company may, but
shall not be obligated to, establish a trust to hold assets for the purpose of
satisfying obligations under this Supplement A. The Board shall retain the
right to terminate, at any time, for any reason, or no reason, the deferral
provisions under this Supplement A (which may, but need not, be in conjunction
with a termination of the Plan), and shall immediately distribute all, but not
less than all, of the Stock Accounts and Cash Accounts as of the date of such
termination.

 17

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