Document:

EXHIBIT 10.53

Confidential treatment has been requested for portions of this exhibit. The copy
filed herewith omits the  information  subject to the  confidentiality  request.
Omissions  are  designated  as ***. A complete  version of this exhibit has been
filed separately with the Securities and Exchange Commission.

                   DISTRIBUTION SERVICES AND STORAGE AGREEMENT

                                     BETWEEN

                               CELGENE CORPORATION

                                       AND

                                SHARP CORPORATION

                                 JANUARY 1, 2005

                                       1

*** - indicates  material omitted pursuant to a Confidential  Treatment  Request
and filed separately with the Securities and Exchange Commission.

<PAGE>

                   DISTRIBUTION SERVICES AND STORAGE AGREEMENT

         This Amended and Restated  Distribution Services Agreement entered into
this 1st day of January,  2005, by and between Celgene  Corporation,  a Delaware
corporation ("CELGENE"), and Sharp Corporation ("SHARP").

         WHEREAS,  CELGENE  and  SHARP  entered  into  a  Distribution  Services
Agreement dated June 12, 2000 (the "Agreement"); and

         WHEREAS, CELGENE and SHARP desire to amend and restate the Agreement in
its entirety.

         NOW, THEREFORE, in consideration of the promises, covenants, agreements
and other  valuable  consideration  hereinafter  set forth,  the parties  hereto
hereby amend and restate the Agreement in its entirety as follows:

Article 1.      DEFINITIONS

         As used in this  agreement,  the following words and phrases shall have
the following meanings:

                  (a)      "FDA"  shall  mean the  United  States  Food and Drug
                           Administration, or any successor entity thereto.

                  (b)      "Act"  shall mean the United  States  Food,  Drug and
                           Cosmetics Act, as amended,  and rules and regulations
                           promulgated thereunder.

                  (c)      "Products" are defined in schedule 1.(c)

                  (d)      "SHARP  facility" shall mean SHARP's  facility either
                           owned or  leased by Sharp,  at which  SHARP  provides
                           distribution services for pharmaceutical products.

                  (e)      "API" shall mean the active pharmaceutical ingredient
                           required  to   manufacture  a  formulation   of  drug
                           product.

                  (f)      "One Time Costs" as defined in schedule 1.(f)

Article 2.      TERM

         This  Agreement  shall be in effect  for an  initial  term of *** years
         commencing January 1st, 2005 (the "Initial Term"), for the distribution
         of Celgene products,  if not earlier terminated  according to Article 5
         of this Agreement. The term of this Agreement shall automatically renew
         for  successive  ***-year  periods unless either party hereto gives the

                                       2

*** - indicates  material omitted pursuant to a Confidential  Treatment  Request
and filed separately with the Securities and Exchange Commission.

<PAGE>

         other  notice of  non-renewal  hereof at least *** months  prior to the
         expiration of the Initial Term or any *** year renewal  period,  as the
         case may be.  Distribution terms of in-licensed  product are subject to
         the term of the individual licensing agreements.

Article 3.      ENGAGEMENT; SERVICES

3.01     CELGENE hereby engages SHARP and SHARP hereby accepts the engagement by
         CELGENE,  to provide the services  hereinafter  described on the terms,
         and subject to the conditions set forth in this Agreement.

3.02     SHARP  will,  as  agent  for  CELGENE,  process  sales  orders  for the
         Products,  ship the  Products  and  process  returns  of the  Products.
         Without limiting the generality of the preceding sentence, SHARP will

                  (a)      dedicate  at  least  ***  square  feet  at the  SHARP
                           facility for the  warehousing  of the  Products,  the
                           processing  of sales  orders for the Products and the
                           processing of returns of the Products;

                  (b)      dedicate at least ***  full-time  SHARP  employees to
                           provide the services described herein;

                  (c)      provide  storage space at the SHARP facility to store
                           API as needed;

                  (d)      provide  perpetual   tracking  of  inventory  of  the
                           Products by lot number.

                  (e)      provide  supervision  of the  destruction of returned
                           and  expired  Products;  and  provide  reporting  and
                           documentation  of  product   destruction  within  ten
                           business days of destruction of product.

                  (f)      provide for the  refrigerated,          2-8(degrees)C
                           (36-46(degrees)F), storage as required.

                  (g)      provide   office  space  for  at  least  ***  Celgene
                           employee.

3.03     CELGENE will provide SHARP remote access to CELGENE's  validated  sales
         order processing  system, and the computer equipment to be described on
         Schedule 3.03 hereto for the purpose of such access and to enable SHARP
         to report on a daily work-day basis to CELGENE. SHARP acknowledges that
         any and all information equipment, inventory or other items provided to
         SHARP  pursuant  to this  Agreement  shall be and remain the  exclusive
         property of CELGENE,  shall be used by SHARP  solely for the purpose of
         rendering  the services  provided for  hereunder  and shall be returned
         promptly  by SHARP  to  CELGENE  upon  termination  of this  Agreement,
         without SHARP having retained any copy thereof.

Article  4.     FEES, EXPENSES

                                       3

*** - indicates  material omitted pursuant to a Confidential  Treatment  Request
and filed separately with the Securities and Exchange Commission.

<PAGE>

4.01     For all services to be rendered by SHARP to CELGENE hereunder,  CELGENE
         shall pay SHARP the fees set forth on Schedule 4.01 hereto at the times
         also described in such Schedule.

4.02     Freight charges will be billed directly to CELGENE by carriers.

4.03     Additional  charges due to volume demand,  changes required by Celgene,
         and/or annual  inflation/wage  increases,  to be mutually  agreed upon.
         Reductions in charges due to volume  decline or other similar  factors,
         are to be  negotiated  in good faith and mutually  agreed upon.  If the
         parties cannot agree on the price  adjustments,  the parties will abide
         by the opinion of a mutually agreed upon arbitrator.

5.       TERMINATION

5.01     Upon the occurrence of the following events, either party may terminate
         this Agreement by giving the other party *** days prior written notice:

                  (a) If the other  party is unable  to pay its  debts,  becomes
                  bankrupt  or  insolvent  or enters  into  liquidation  whether
                  compulsory  or  voluntary,  or  compounds  with or  convenes a
                  meeting of its creditors,  or has a receiver appointed overall
                  or part of its assets,  or takes or suffers any similar action
                  in consequence of a debt, or ceases for any reason to carry on
                  business; or

                  (b)  Upon  the  breach  of  any  material  provision  of  this
                  Agreement by the other party if the breach is not cured within
                  *** days after written  notice thereof to the party in default
                  and the  material  breach  continues  to  exist at the time of
                  notice of termination.

5.02     CELGENE may  terminate  this  Agreement  at any time by giving *** days
         written notice to SHARP, if CELGENE, in its sole discretion, determines
         that it will no longer  market  the  Products  or if the FDA  withdraws
         approval of the  manufacture or marketing of the Products.  CELGENE may
         terminate this agreement if the FDA or any other regulatory agency that
         regulates  the  Products  takes any  action  the  result of which is to
         prohibit  the  manufacture,  sale or use or any  similar  action of the
         Products or any raw material contained therein or to impose significant
         restriction.

5.03     The Agreement may be terminated  Pursuant to Article 2, which  provides
         for  termination,  by notice from either party,  upon expiration of the
         Initial Term or any *** period.

5.04     Termination,  expiration, or cancellation of this Agreement through any
         means  and  for  any  reason  shall  not  relieve  the  parties  of any
         obligation  accruing  prior  thereto,  including but not limited to the
         confidentiality  provisions herein and the obligation to pay money, and
         shall be without  prejudice  to the rights and remedies of either party
         with respect to the antecedent  breach of any of the provisions of this
         Agreement.  During the term of this  Agreement  and for a period of ***
         years  thereafter,  both parties  hereto,  subject to applicable  laws,
         shall  maintain in confidence all  information  received from the other
         party  resulting  from or related to the matters  contemplated  by this
         Agreement.

                                       4

*** - indicates  material omitted pursuant to a Confidential  Treatment  Request
and filed separately with the Securities and Exchange Commission.

<PAGE>

5.05     If for any  reason  Celgene  terminates  contract  prior to full  term,
         Celgene  will repay  Sharp's  facility  "one time costs"  according  to
         schedule 5.05.

Article 6.      REPRESENTATION, WARRANTY AND COVENANT

         SHARP  represents and warrants to, and covenants with,  CELGENE that it
         shall render its services  hereunder in compliance  with all applicable
         laws and regulations, including, but not limited to, those dealing with
         occupational  safety and health,  those  dealing with public safety and
         health,  those  dealing  with  protecting  the  environment,  and those
         dealing with disposal of wastes.

Article 7.      INDEMNIFICATION

7.01     CELGENE  shall  indemnify  and hold  SHARP,  its  officers,  directors,
         agents,  servants,  and employees harmless against all claims,  losses,
         damages and liabilities,  including reasonable legal expenses,  arising
         out  of  CELGENE'S  duties  under  this  Agreement  or  the  use of the
         products, and which are not attributable to:

                  (a)      the negligence of SHARP or its agents or employees,

                  (b)      the   failure   of  SHARP  to  follow   the   written
                           instructions and specifications of CELGENE; or

                  (c)      SHARP's breach of this Agreement.

         SHARP  shall not  settle  any such  claim  without  the  prior  written
         approval of CELGENE and CELGENE shall have the right,  if it so wishes,
         to conduct  negotiations  to settle,  settle or conduct any  litigation
         arising out of, any such claim.  SHARP shall  provide  prompt notice of
         any claim to CELGENE and shall cooperate in the defense of the claim.

7.02     SHARP  shall  indemnify  and hold  CELGENE,  its  officers,  directors,
         agents,  servants,  and employees harmless against all claims,  losses,
         damages, and liabilities  including reasonable legal expenses,  arising
         out  of  SHARP's   duties  under  this  Agreement  and  which  are  not
         attributable to:

                  (a)      any act or  negligence  of  CELGENE  or its agents or
                           employees,

                  (b)      the  failure of CELGENE  or its  employees  to comply
                           with applicable law or regulations, or

                  (c)      Celgene's breach of this Agreement.

         CELGENE  shall not  settle  any such claim  without  the prior  written
         approval  of SHARP,  and that  SHARP  shall  have the  right,  if it so
         wishes,  to  conduct  negotiations  to settle,  settle or  conduct  any
         litigation arising out of, any such claim. CELGENE shall provide

                                       5

*** - indicates  material omitted pursuant to a Confidential  Treatment  Request
and filed separately with the Securities and Exchange Commission.

<PAGE>

         prompt  and  written  notice  of any  such  claim to  SHARP  and  shall
         cooperate in the defense of the claim.

7.03     The  indemnification  obligations  set  forth in this  Article  7 shall
         survive the termination of this Agreement.

Article 8.      QUALITY AGREEMENT

         A  Quality  Agreement  shall be in place  by March  15,  2005 or a date
         shortly after that is mutually agreed upon by both parties.

Article 9       RIGHTS TO INSPECT

9.01     In  performing  distribution  of the  Products  hereunder,  SHARP shall
         permit  CELGENE  and/or  its  designated  representative,   but  not  a
         competitor of Sharp,  to inspect on a regular  basis or as needed,  but
         not less than once per year that portion of SHARP  Facility to evaluate
         SHARP's  work  practices,  supporting  systems,  documents  and records
         associated  with the Products and make such copies of the  documents as
         reasonably  necessary for the purpose of assessing  SHARP's  compliance
         with  applicable  regulations.  Additionally,  SHARP shall from time to
         time permit CELGENE and/or its designated  representative access to the
         SHARP Facility for the purpose of confirming  inventory of the Products
         on hand, as and when such  confirmation is determined to be appropriate
         by CELGENE's  external  auditors.  All such reviews  shall be conducted
         upon reasonable prior notice by CELGENE.

9.02     SHARP shall keep CELGENE fully  informed of the steps taken by SHARP to
         resolve  any  outstanding  issues  with  the FDA  and  the  anticipated
         timetable of  resolution  of such issues as it applies to either of the
         Products.

Article 10      ASSIGNMENT

         This  Agreement may not be assigned or transferred by SHARP without the
         prior  written  consent of  CELGENE.  In the event there is a change of
         control of SHARP or its business,  this Agreement will remain in effect
         and bind the acquirer.

Article 11      COURT PROCEEDINGS; GOVERNING LAW

         Any court  proceeding  initiated  by one party  against  the other with
         respect to any dispute under this  Agreement  shall be commenced in the
         United States  District  Court for the Eastern  District of New Jersey.
         This Agreement  will be governed by, and construed in accordance  with,
         the laws of the State of New Jersey.

Article 12      FORCE MAJEURE

         Any delay in the  performance  of any of the duties or  obligations  of
         either party (except the payment of money due  hereunder)  shall not be
         considered  a  breach  of this  Agreement  and the  time  required  for
         performance  shall be extended for a period equal to the period

                                       6

*** - indicates  material omitted pursuant to a Confidential  Treatment  Request
and filed separately with the Securities and Exchange Commission.

<PAGE>

         of such  delay;  provided  that such delay has been caused by or is the
         result of any acts of God,  acts of the  public  enemy,  insurrections,
         riots,  embargoes,  labor disputes,  including strikes,  lockouts,  job
         actions, or boycotts,  equipment failure,  fires,  explosions,  floods,
         shortages of material or energy or other  unforeseeable  causes  beyond
         the reasonable control of the party so affected.  The party so affected
         shall give prompt  notice to the other  party of such cause,  and shall
         take whatever  reasonable  steps are necessary to relieve the effect of
         such cause as rapidly as  reasonably  possible.  Not  withstanding  the
         forgoing, if SHARP is unable to perform for any of the above enumerated
         reasons,  CELGENE shall be relieved of its obligations hereunder during
         the  pendency  thereof,  and if such  inability  of  SHARP  to  perform
         continues for a period longer than *** days, CELGENE shall have a right
         to terminate this Agreement.

Article 13.     SEVERABILITY

3.04     In the  event  that  any  provision  of this  Agreement  is  judicially
         determined  to be  void  or  unenforceable,  such  provision  shall  be
         construed to be separable  from the other  provisions of this Agreement
         which shall retain full force and effect.

Article 14      HEADINGS

         All titles and captions in this Agreement are for convenience  purposes
         only and shall not be of any force or substance.

Article 15      USE OF NAMES

         Except as expressly  required  pursuant to the Act,  neither party will
         without the prior written consent of the other: (a) use in advertising,
         publicity,   promotional   premiums  or  otherwise,   any  trade  name,
         trademark,  trade device,  service mark,  symbol,  or any abbreviation,
         contraction  or  simulation  thereof  owned  by  either  party,  or (b)
         represent,  either directly or indirectly,  that any product or service
         of one party is a product or service of the other.

Article 16      INDEPENDENT CONTRACTOR

3.05     Each party is acting under this Agreement as an independent  contractor
         and not as the agent or employee of the other.  Each party  understands
         and agrees that it has no authority to assume any  obligation on behalf
         of the other party and that it shall not hold out to third parties that
         it has any  authority  to act on the  other  party's  behalf  except as
         expressly  permitted herein.  Unless otherwise expressly stated herein,
         each party shall be  responsible  for its own expenses  relating to its
         performance  under this  Agreement and shall not incur expenses for the
         other  party's  account  unless  expressly   authorized  herein  or  by
         subsequent written agreements.

Article 17      WAIVER

         No waiver or  modification  of any of the terms of this Agreement shall
         be valid unless in writing and signed by an  authorized  representative
         of both parties  hereto.  Failure by

                                       7

*** - indicates  material omitted pursuant to a Confidential  Treatment  Request
and filed separately with the Securities and Exchange Commission.

<PAGE>

         either  party to enforce any rights under this  Agreement  shall not be
         construed as a waiver of such rights nor shall a waiver by either party
         in one or more  instances  be construed  as  constituting  a continuing
         waiver or as a waiver in other instances.

Article 18      PUBLIC DISCLOSURE

         Neither  party  shall  disclose  to any third  party or  originate  any
         publicity,  news  release  or  public  announcement,  written  or oral,
         whether to the public or the press, or otherwise,  refer into the terms
         of this Agreement, including its existence, the subject matter to which
         it relates,  the performance  under it or any of its specific terms and
         conditions,  except by such  announcements  as are (i) mutually  agreed
         upon by the parties in  writing,  or (ii) in the opinion of counsel for
         the party  making  such  announcement  are  required by law. If a party
         believes a public  announcement  to be required by law with  respect to
         this  Agreement,  it will  give  the  other  party  such  notice  as is
         reasonably   practicable   and  an  opportunity  to  comment  upon  the
         announcement.

ARTICLE 19      NOTICES

         Unless otherwise specified herein, all notices required or permitted to
         be  given  under  this  Agreement  shall  be in  writing  and  shall be
         delivered either  personally and promptly  confirmed by such registered
         or certified mail or overnight courier service or sent by registered or
         certified  mail,  return  receipt  requested,  or by overnight  courier
         service,  postage  prepaid in each case,  or by facsimile  and promptly
         confirmed  by  such  registered  certified  mail or  overnight  courier
         service to the receiving party at such party's address set forth below,
         or at such  other  address  as may from  time to time be  furnished  by
         similar  notice by either  party.  Any  notice  sent by  registered  or
         certified  mail as  aforesaid  shall be deemed to have been  given when
         mailed, and shall be effective upon receipt.

         If to SHARP:

         Sharp Corporation
         7451 Keebler Way
         Allentown, Pennsylvania  18106
         Attention:_Chief Financial Officer

If to CELGENE:

         Celgene Corporation
         86 Morris Avenue
         Summit, New Jersey 07901 U.S.A.
         Attention:  Vice President, Legal and Chief Counsel

         or to such other address as the addressee  shall have last furnished in
         writing to the addresser.

                                       8

*** - indicates  material omitted pursuant to a Confidential  Treatment  Request
and filed separately with the Securities and Exchange Commission.

<PAGE>

ARTICLE 20.     ENTIRE AGREEMENT

20.01    This Agreement  constitutes  the entire  agreement  between the parties
         with respect to the subject matter  hereof,  and supersedes all written
         or oral agreements or understandings with respect thereto.

20.02    Neither party shall claim any amendment,  modification, or release from
         any provision, hereof, unless such an amendment is in writing signed by
         an authorized representative of each party.

SHARP CORPORATION                           CELGENE CORPORATION

By:***                                      By:***

Name:***                                    Name:***
Title:***                                   Title:***
Date: 4/11/05                               Date: April 13, 2005

                                       9

*** - indicates  material omitted pursuant to a Confidential  Treatment  Request
and filed separately with the Securities and Exchange Commission.Exhibit 10.(a)

	 

		 
		
Philip McAndrews Managing 
	
	
FINANCIAL SERVICES FOR 
		 
		
Director 
	
	
THE GREATER GOOD. 
		 
		
Real Estate Equities 
	
	 

		 
		
Head of Portfolio Management Tel: 
	
	 

		 
		
212-916-6023 
	
	 

		 
		
Fax: 212-916-4527 
	
	 

		 
		
pmcandrews@tiaa-cref.org 
	
	 	 	 
	 	 	 
	 	February 22, 2006
	 
	 	 	 
	 	 	 

Real Estate Research Corporation 

980 N. Michigan Avenue

Suite 111 0

Chicago, Illinois 60611

Attention: Mr. Kenneth P. Riggs, Jr.

	
Re: 
		 
		
Teachers Insurance and Annuity 
	
	 

		 
		
Association of America 
	
	 

		 
		
Real Estate Separate Account; 
	
	 

		 
		
ERISA Independent Fiduciary 
	

Dear Ken:

     This letter sets forth the terms and conditions under which Teachers Insurance and Annuity Association of America (the “Company”) offers to appoint Real Estate Research Corporation
(“RERC”) to serve as the Independent Fiduciary, as defined below, under the Employee Retirement Income Security Act of 1974, as amended (“ERISA”) for its real estate pooled separate account (the “Account”). The Account
is designed primarily for investment by participants in retirement plans qualified under § 401(a) and § 403(a) of the Internal Revenue Code of 1986, as amended, (“Code”), Code § 403(b) plans, and certain individual
retirement annuities under § 408 of the Code.

 

	1. 	Background
	 	  
	 	      On October 17, 1996 the Company was granted a prohibited transaction exemption (“PTE”) from the Department of Labor (“DOL”), PTE 96-76, Exemption Application No.D-09915, 61 Fed. Reg. 54229 (1996). PTE 96-76 provides an exemption from certain potential prohibited transactions under § 406 of ERISA and § 4975 of the Code with respect to certain transactions or classes of transactions involving the Account. Among other features, the Account offers a stand-by liquidity mechanism under which units of interest in the Account (“Units”) may be purchased or sold by the Company. PTE 96-76 contemplates that various aspects of the Account’s operation will be subject to the oversight of an Independent Fiduciary (“Independent Fiduciary”) which will be a business organization with substantial real estate investment experience and which will be familiar with the responsibilities of a fiduci

ary with respect to benefit

	  

 

63

	

		 

		 
		
plans under ERISA. The Independent Fiduciary will act for the exclusive benefit of the 
	
	

		 

		 
		
plans and plan participants who elect to participate in the Account. 
	
	 

	
	

		 

		 
		
     Included in PTE 96-76, Section III (e), 61 Fed. Reg. 54230-54231, are descriptions 
	
	

		 

		 
		
of the responsibilities of the Independent Fiduciary. The valuation procedures and rules 
	
	

		 

		 
		
for the Account are described in Exhibit A to this Agreement and in the proposed PTE, 
	
	

		 

		 
		
61 Fed. Reg. 15128, pgs. 15134-15136 (1996). 
	
	 

	
	
      2.
      
	 
		 
		
Compensation 
	
	 

	
	

		 

		 
		
     Compensation for services rendered by pursuant to this Agreement shall be paid 
	
	

		 

		 
		
from the Account in the amounts and in accordance with the terms and conditions set 
	
	

		 

		 
		
forth in Schedule 1 attached hereto. 
	
	 

	
	
      3.
      
	
 
		 
		
Duties and Responsibilities of the Company 
	
	 

	
	

		 

		 
		
     The Company is an investment manager, as defined in Section 3(38) of ERISA, 
	
	

		 

		 
		
with respect to the Account, and shall be primarily responsible, as a fiduciary under 
	
	

		 

		 
		
ERISA, for all aspects of the establishment and administration of the Account. The 
	
	

		 

		 
		
Company alone shall be responsible for making determinations with respect to the 
	
	

		 

		 
		
acquisition and disposition of properties by the Account and for all other aspects of the 
	
	

		 

		 
		
investment of Account assets, subject to the duties and responsibilities of specifically set 
	
	

		 

		 
		
forth in PTE 96-76 and paragraph 4 hereof. 
	
	 

	
	
      4.
      
	
 
		 
		
Duties and Responsibilities of Independent Fiduciary 
	
	 

	
	

		 

		 
		
A. 
		 
		
The Independent Fiduciary’s duties and responsibilities under this Agreement 
	
	

		 

		 
		 

		 
		
shall be those set forth in PTE 96-76 and as described below: 
	
	 

	
	

		 

		 
		 

		 
		
      (1)
      
	 
		 
		
The Independent Fiduciary will review and approve the valuation of the 
	
	

		 

		 
		 

		 
		

		 

		 
		
Account and of the properties held in the Account as outlined in the 
	
	

		 

		 
		 

		 
		

		 

		 
		
proposed PTE, 61 Fed. Reg. 15128, pgs. 15134-15136 and as more 
	
	

		 

		 
		 

		 
		

		 

		 
		
specifically described in Valuation Procedures and Rules which have been 
	
	

		 

		 
		 

		 
		

		 

		 
		
adopted for the Account by the Company and which shall be subject to the 
	
	

		 

		 
		 

		 
		

		 

		 
		
approval of. (A copy of the current draft of the valuation procedures and 
	
	

		 

		 
		 

		 
		

		 

		 
		
rules for the Account is attached as Exhibit A.) 
	
	 

	
	

		 

		 
		 

		 
		
      (2)
      
	 
		 
		
The Independent Fiduciary will approve the appointment of all 
	
	

		 

		 
		 

		 
		

		 

		 
		
independent appraisers retained by the Company to perform periodic 
	
	

		 

		 
		 

		 
		

		 

		 
		
valuations of Account properties. For this purpose, the Company will 
	
	

		 

		 
		 

		 
		

		 

		 
		
forward to information provided to the Company with respect to the 
	
	

		 

		 
		 

		 
		

		 

		 
		
background, education and experience of each such independent 
	
	

		 

		 
		 

		 
		

		 

		 
		
appraiser. 
	
	 

	
	

		 

		 
		 

		 
		
      (3)
      
	 
		 
		
The Independent Fiduciary may require an appraisal in addition to those 
	
	

		 

		 
		 

		 
		

		 

		 
		
conducted by an independent appraiser appointed as provided in clause 
	

64

	 	
(2) above, when it believes that the characteristics of a particular property have changed materially or with respect to any property where it deems an additional appraisal to be necessary or appropriate in order to assure a
correct Account valuation. The Independent Fiduciary will perform such reviews of Account properties as it may determine to be necessary or desirable in establishing the necessity of such additional appraisals. The Independent Fiduciary shall have
the authority to designate independent appraisers to be hired by the Company to perform any such additional appraisals, but the Company hereby reserves the right to disapprove any such selection. Accordingly, the Independent Fiduciary shall notify
the Company at least fourteen (14) days prior to the anticipated hiring of any appraiser not previously approved by the Company. Any such appraiser will be deemed approved by the Company if the Company fails to object within fourteen (14) days of
receipt of the aforesaid notice and the Company will, thereupon, hire such appraiser. The Company may in its sole discretion withdraw its approval of an appraiser at any time prior to hiring such appraiser for future appraisals by giving a notice of
withdrawal of its approval.	
	 
	
(4)      		
The Independent Fiduciary shall review purchases and sales of Units, as defined in PTE 96-76, Section IV(P), 61 Fed. Reg. 54233, by Account participants and the Company to assure that correct Account values are applied. With
respect to the foregoing, the Independent Fiduciary may rely upon the truth, completeness and correctness of information provided to it by the Company or by the independent auditor designated by the Company with respect to the Account.	
	 
	
(5)      		
If required under PTE 96-76, the Independent Fiduciary will determine with the Company the appropriate “Trigger Point” as defined in PTE 96- 76, Section IV(o), 61 Fed. Reg. 54233, relating to the level of the
Company’s ongoing ownership of Liquidity Units in the Account, as defined in PTE 9676, Section IV(g), 61 Fed. Reg. 54232, and the manner in which any reduction of the Company’s participation in excess of such Trigger Point is to be
effected as contemplated under the PTE. If the Independent Fiduciary believes that asset sales are desirable in order to reduce the Company’s ownership of Units in the Account, will participate in the planning of any such program of sales,
including the selection of the properties to be sold and the guidelines to be followed in making such sales.	
	 
	
(6)      		
In the event of the termination of the Account as described in PTE 96-76, Section III(e)(10) and (11), 61 Fed. Reg. 54231, the Independent Fiduciary will approve the sale of Account properties and supervise Account operation
during the “Wind Down” period (as defined in PTE 96-76, Section IV(q), 61 Fed. Reg. 54233). Such period will commence with the	
	 

65

	 	 	Company’s notice to Account participants of its termination of the Account and will end on the date that no Units are held by any Participant (and, if applicable, Participating Plans), as defined in PTE 96-76 (see Section III(c), 61 Fed. Reg. 54229 and IV(h), 61 fed. Reg. 54232, respectively). 
	 	 	 
	 	
(7)      		
The Independent Fiduciary will review and approve the investment guidelines established by the Company for the Account and will monitor the conformity of all property acquisitions and sales with the requirements of such
guidelines.	
	 
	 	
(8)      		
With respect to any other transaction or matter involving the Account that is submitted to the Independent Fiduciary by the Company, will review said transaction or matter in order to determine whether it is fair to the Account
and in the Account’s best interests.	
	 
	
B.      		
In the event that the Company or the DOL or any other governmental agency requires or requests the Independent Fiduciary to perform additional functions reasonably related to the type of review described herein, or to undertake
duties with respect to the Account beyond those specifically enumerated herein, these additional duties and functions shall be deemed to be included among the duties of under this Agreement, provided that:	
	 
	 	
(1)      		
The Company requests the Independent Fiduciary to perform such activity in writing; and	
	 
	 	
(2)      		
The Independent Fiduciary and the Company determine the nature and amount of any additional compensation that may be appropriate with respect to such additional duties. If the Independent Fiduciary and the Company are not able to
agree upon the nature and amount of any additional compensation, the Independent Fiduciary and the Company hereby agree to submit any disputed issues to arbitration and to be bound by the results thereof; provided, however, that the Independent
Fiduciary shall nevertheless perform the additional duties described above during the time required for a final determination to be made with respect to the nature and/or amount of any additional compensation that it may receive.	
	 
	
C.      		
The Independent Fiduciary will meet with the Company on a quarterly basis to review the activities of the Account and the actions that the Independent Fiduciary has taken under this Agreement. The Independent Fiduciary will submit
to the Company a summary report from time to time as it may deem necessary or appropriate, but no less frequently than annually. Such report shall be a written report that summarizes and explains all actions and activities that the Independent
Fiduciary has undertaken since the submission of the last such report or the commencement of its terms, except those actions and activities that	
	 

66

	 	
the Independent Fiduciary in its judgment deems to be not material. All or any part of any such report may, after consultation with the Independent Fiduciary, be provided by the Company to any Account participant or to the DOL or
any other governmental agency. The Independent Fiduciary shall maintain appropriate records of its actions and activities under this Agreement and will allow the Company to review such records during normal business hours upon reasonable prior
request by the Company, and the Company, after consultation with, may provide the results of any such review to the DOL or to any other governmental agency.	
	 
	 	
D.      		
The Independent Fiduciary may make all reasonable inquiries, consult with whomever it reasonably deems necessary, do all acts that are reasonably necessary to the performance of its duties, and review such Company documents as are
reasonably appropriate for carrying out its responsibilities under this Agreement. All work to be performed, pursuant to this paragraph 4, may be performed during normal business hours at the Company’s Home Office, 730 Third Avenue, New York,
New York 10017 or such other place as may be reasonably designated by the Independent Fiduciary, including their offices.	
	 
	
5.      		
Representations	
	 
	 	
The Independent Fiduciary represents and agrees that:	
	 
	 	
A.      		
The Independent Fiduciary has at least five years of experience with respect to commercial real estate investments.	
	 
	 	
B.      		
The gross income which is received by the Independent Fiduciary (or any partnership or corporation of which is a 10 percent or more partner or shareholder) from the Company and its affiliates (as defined in PTE 96-76, Section
IV(b), 61 Fed. Reg. 54231-54232) for any fiscal year ending during the term of this Agreement shall not exceed 5 percent of its annual gross income from all sources for the preceding fiscal year. Such income limitation will include services rendered
to the Account as the Independent Fiduciary under any prohibited transaction exemption granted by the DOL. The Independent Fiduciary will provide, on or before February 15, of each year, a written report to the Company of the gross income it
received from the Company in the prior fiscal year as a percentage of the gross income received during the preceding fiscal year.	
	 
	 	
C.      		
The Independent Fiduciary shall not (i) acquire any property from, sell any property to or borrow any funds from, the Company or any of its affiliates during the period for which it serves as an Independent Fiduciary under this
Agreement and for a period of six months thereafter, or (ii) negotiate any such transaction described in (i) during the period that serves as the Independent Fiduciary.	
	 

67

	    		D.  	
In the event that the DOL requires additional representations by the Independent Fiduciary, it is agreed that the Independent Fiduciary will make any such reasonably required representations that are true in fact.	

6. Independent Status

     As the Independent Fiduciary, the Independent Fiduciary shall not be an agent of the Company. In keeping with this status, the Independent Fiduciary shall be free to control its method of fulfilling
its responsibilities within the framework of its obligations to the Participants and their beneficiaries (and, if applicable, Participating Plans), as defined in PTE 96-76, Section III(c), 61 Fed. Reg. 54229 and IV(h), 61 Fed. Reg. 54232,
respectively, and to the Company.

7. Fiduciary Standards/Confidentiality

     Notwithstanding any other provision of this Agreement, it is understood that the Independent Fiduciary will act as a fiduciary, as defined in ERISA, with respect to the Participants and their
beneficiaries (and, if applicable, Participating Plans) that invest in the Account, and that the Independent Fiduciary will perform its duties under this Agreement for the exclusive benefit of such Participants, their beneficiaries and Participating
Plans and in conformity with the legal requirements imposed upon it by ERISA.

     It is understood that the Independent Fiduciary will not unnecessarily engage in any activity in connection with this appointment that is adverse to the interest of the Company. The Independent
Fiduciary may provide similar Independent Fiduciary services with respect to other benefit plans subject to ERISA; provided that the Independent Fiduciary does not use or disclose in such relationships confidential information obtained by it in the
course of providing services under this Agreement.

     Upon termination of this Agreement, the Independent Fiduciary will disclose to the Company all material in its possession that has been released to it by the Company or produced pursuant to this
Agreement. Such material may be retained by the Independent Fiduciary if it deems such retention to be necessary to protect its interests or the interests of the Participants and their beneficiaries (and, if applicable, Participating Plans) that
have invested in the Account. If the Independent Fiduciary retains any such material, it shall promptly notify the Company in writing of such action. The aforesaid notice shall include an itemized list of all retained documents and other materials.
Upon receipt of the aforesaid notice, or at any time thereafter, the Company may at its option, require that the Independent Fiduciary deliver all such retained material to the person who succeeds to its position as Independent Fiduciary. However,
the Independent Fiduciary may retain any materials that it deems necessary to protect its interests, provided that copies of said materials are furnished to either the Company or the Independent Fiduciary’s successor as Independent Fiduciary,
upon request. The Independent Fiduciary will not at any time during the term of this Agreement or thereafter disclose any of the Company’s trade secrets, confidential

68

business methods, or any other confidential information which it may have acquired during its service as Independent Fiduciary under this Agreement.

8. Personnel

     The Independent Fiduciary agrees that, without limiting its responsibilities under this Agreement or under ERISA, primary responsibility for the performance of the services contemplated under this
Agreement shall be assigned to Kenneth P. Riggs, Jr., and that it will use its best efforts to assure that Kenneth P. Riggs, Jr. continues to act in such capacity during the term of this Agreement. In the event that Kenneth P. Riggs, Jr. does not,
for any reason, continue to serve in such capacity, agrees that it will assign primary responsibility for the duties contemplated under this Agreement to a senior employee of similar experience and ability.

	
9.      		
Effective Date/Termination Notice	
	 
	 	
A.      		
This Agreement shall become effective on March 1, 2006, or if later, the date of receipt by the Company of a copy of this Agreement that has been executed by the Independent Fiduciary and by an authorized officer of the
Company.	
	 
	 	
B.      		
The Independent Fiduciary’s appointment shall commence on the date this Agreement becomes effective for a three (3) year term, and shall be renewable by the Company, from time to time, and without limitation on the number of
renewals, for additional three (3) year terms. The Company shall delegate to a special subcommittee of the Company’s Investment Committee (the “Subcommittee”) the sole power to renew any such appointment and the Subcommittee shall not
renew the appointment if forty percent (40%) of the Subcommittee members disapprove of such renewal. Upon expiration of the Independent Fiduciary’s appointment without renewal this Agreement shall terminate. The Independent Fiduciary may
terminate this Agreement at any time but must give at least 180 days prior written notice to the Company. The Company must terminate this Agreement and The Independent Fiduciary’s appointment prior to the expiration of the term of its
appointment if a majority of the Special Subcommittee members determines that: (1) The Independent Fiduciary has breached any representation set forth in paragraph 5; (2) that the Independent Fiduciary has failed to carry out its responsibilities
under this Agreement in an effective manner, or is unable to do so; or (3) that a merger or restructuring of the Independent Fiduciary with or into another entity may cause a conflict of interest that shall impair the Independent Fiduciary’s
ability to carry out its responsibilities under this Agreement in an effective manner. In the event that the Independent Fiduciary’s term shall terminate as described in this paragraph 9B., the Independent Fiduciary shall be compensated only
for services performed by it prior to the date of such termination.	
	 
	 	
C.      		
Unless otherwise expressly provided herein, any notice, demand or request under this Agreement shall be deemed to have been properly given and served by	
	 

69

	 	
depositing the same in the United States mail, addressed as provided herein, postpaid and registered or certified with return receipt requested. Any such notice, demand or request shall be effective upon being deposited in the
United States mail. However, the time period in which a response or action to any such notice, demand or request must be given or taken shall commence to run from the date of receipt on the return receipt of the notice, demand or request by the
addressee thereof. Rejection or other refusal to accept or the inability to deliver because of changed address of which no notice was given shall be deemed to be receipt of the notice, demand or request. Notice to the Company shall be addressed to
Ms. Margaret Brandwein, Managing Director, Teachers Insurance and Annuity Association of America, 730 Third Avenue, New York, New York 100173206, with a copy to Mr. Peter A. Weinberg, Senior Counsel, Teachers Insurance and Annuity Association of
America, 730 Third Avenue, New York, New York 100173206, (or such other person or persons as the Company may designate). Notice to the Independent Fiduciary shall be addressed to Mr. Kenneth P. Riggs, Jr., CEO and Managing Principal, Real Estate Research Corporation, 900 N. Michigan Avenue, Suite 1110, Chicago, Illinois 60611.	
	 
	
10.      		
Indemnification and Insurance	
	 
	 	
A.      		
Subject to the limitations in clause C of this paragraph 10, the Independent Fiduciary shall be indemnified and saved harmless by the Account from and against any and all claims of liability arising in connection with the exercise
of its duties and responsibilities to the Account by reason of any act or omission, including all expenses reasonably incurred in the defense of such act or omission, unless (1) it shall be established by final judgment of a court of competent
jurisdiction that such act or omission involved a violation of the duties imposed by Part 4 of Title I of ERISA on the part of the Independent Fiduciary, or (2) in the event of a settlement or other disposition of such claim involving the Account,
it is determined by written opinion of independent counsel acceptable to both parties, that such act or omission involved a violation of the duties imposed by Part 4 of Title I of ERISA on the part of the Independent Fiduciary.	
	 
	 	
B.      		
Subject to the limitation in clause C of this paragraph 10, the Account shall pay expenses (including reasonable attorneys’ fees and disbursements), judgments, fines and amounts paid in settlement incurred by the Independent
Fiduciary in connection with any of the proceedings described above, in advance of the final disposition of such proceedings, provided that (1) the Independent Fiduciary shall repay such advances to the Account, plus reasonable interest, if it is
established by a final judgment of a court of competent jurisdiction, or by written opinion of independent counsel under the circumstances described in section A above, that the Independent Fiduciary violated its duties under Part 4 of Title I of
ERISA, and (2) the Independent Fiduciary shall, in the discretion and upon the request of the Company, provide a bond or make other appropriate arrangements for repayment of advances. Notwithstanding the foregoing, no such advances	
	 

70

	 	
shall be made in connection with any claim against the Independent Fiduciary that is made by the Account or the Company, provided that upon the final disposition of such claim, the expenses (including reasonable attorneys’
fees and disbursements), judgments, fines and amounts paid in settlement incurred by the Independent Fiduciary shall be reimbursed by the Account to the extent provided above.	
	 
	
C.      		
The indemnification provided under clauses A and B of this paragraph 10 shall apply only to claims and expenses not actually covered by insurance. The Independent Fiduciary agrees to maintain professional liability coverage that
includes coverage for its responsibilities under this Agreement, with limits of at least $5 million for errors and omissions, $2 million for general business liability, and a $1 million fidelity bond, throughout the term of this
Agreement.	
	 

11. Entire Agreement

     This letter contains the entire agreement between the parties. However, where the text of this Agreement contains express reference to PTE 96-76, or specific paragraphs of PTE 96-76 and the proposed
PTE, 61 Fed. Reg. 15128 (1996), and the representations made therein, it is the intention of the parties that PTE 96-76 and the proposed exemption be incorporated in this Agreement for the purpose of construing the meaning of such express
references. This Agreement may not be changed orally or by conduct but only by agreement in writing signed by both parties.

12. No Waiver

     Failure to insist upon strict compliance with any of the terms, covenants, or conditions of this Agreement shall not be deemed a waiver of such term, covenant, or condition, nor shall any waiver or
relinquishment of any right or power hereunder at any one or more times be deemed a waiver or relinquishment of such right or power at any other time or times.

13. Severability

     The invalidity or unenforceability any provision of this Agreement shall in no way affect the validity or enforceability of any other provision.

14. Choice of Law

     This Agreement and performance hereunder is subject to ERISA. However, to the extent that this Agreement and performance hereunder is not governed by ERISA or other applicable federal law, the laws of
the State of New York shall apply. The choice of law embodied in this paragraph 14 shall be effective irrespective of the jurisdiction in which any suit, action or proceeding may be instituted.

71

     Please signify your acceptance by signing below and returning a copy of this letter to the Company.

	 	
Sincerely, 
	
	 	 

	
	 	
TEACHERS INSURANCE AND 
	
	 	
ANNUITY ASSOCIATION OF AMERICA 
	
	 	 

	
	 	
By: /s/ Philip McAndrews 
	
	 	 
		

	 	
          Philip McAndrews 
	

	
Accepted: 
		 
		 

	
	 	 	 
	
INDEPENDENT FIDUCIARY 
		 
		 

	
	 	 	 
	
By: /s/ Kenneth P. Riggs, Jr.  
		 
		 

	
	 
		
	
		
	
	 

		
	  Date: 2/28/06 
    	 
	

72

SCHEDULE 1

TEACHERS INSURANCE AND ANNUITY ASSOCIATION OF AMERICA

INDEPENDENT FIDUCIARY COMPENSATION 

SCHEDULE FOR THE REAL ESTATE ACCOUNT

     The fee payable to RERC shall be $62,500.00 per calendar quarter plus its reasonable out-of-pocket expenses. The fee shall be paid quarterly, as of the last business day of each calendar quarter,
with the first payment due as of March 31, 2006, but covering only the period March I-March 31, 2006 (i.e., 1/3 of the quarterly payment for the first calendar quarter of year 2006, or
$20,833.33. In no event, however, shall RERC’s fee (the part of its fee that does not include direct out-of-pocket expenses) exceed $250,000 per calendar year. Direct out-of-pocket expenses shall be reimbursed as incurred and shall be
limited to reasonable travel-related expenses, including transportation, hotels, and meals incurred in the performance of RERC’s duties. RERC shall, however, bear the cost of all operating and administrative expenses relating to the performance
of its obligations and duties under this Agreement.

73

  EXHIBIT A

TEACHERS INSURANCE AND ANNUITY ASSOCIATION OF AMERICA

  VALUATION PROCEDURES AND RULES

  FOR REAL ESTATE ACCOUNT

This outline summarizes the basic elements of the valuation procedures and rules for the Account.

Basic Principles

	
1.      		
The valuation of equity real estate holdings is not an exact science; it requires appraisals which are independent estimates of market value.	
	 
	 	
A. Sales are the best measure of the value of equity real estate holdings, but since they don’t occur frequently, appraisals are generally believed to be the best estimate of value at a given point in time.	
	 
	 	
B. External appraisals are expensive, and a balance is required between the accuracy of the estimate of value and the cost to the Account of additional appraisals.	
	 
	
2.      		
The Account’s valuation procedures and rules are under the direct supervision of an Independent Fiduciary and operate within guidelines and limits established by the Independent Fiduciary.	
	 

Valuation Procedures for the Account

	
1.      		
Independent Fiduciary. The valuation of Account properties is conducted under the supervision of the Independent Fiduciary.	
	 
	 	
A. The valuation procedures and rules will be approved by the Independent Fiduciary. They cannot be changed without the consent of the Independent Fiduciary.	
	 
	 	
B. The rules will limit the extent to which a property’s value can change without the prior approval of the Independent Fiduciary.	
	 
	 	
C. The Independent Fiduciary may require a new independent appraisal of any property at any time. 	
	 
	
2.      		
Initial Valuation. The initial value of each property will be the price at which it is acquired (including all expenses relating to purchase, such as acquisition fees, legal fees and expenses, and
other closing costs).	
	 
	
3.      		
Scheduled Valuations.	
	 

74

A. Independent Appraisals. Each property will be valued by an independent appraiser at least once per year.

     (i) The appraisal cycle will be set up so that properties will be independently appraised in as even a pattern as practical over the course of a calendar year. This will be done by assigning to each
property, at the time it is purchased, the month in which its independent appraisal will occur each year.

     (ii) The independent appraisers selected by TIAA must be approved by the Independent Fiduciary.

     (iii) The following would be among the factors generally considered in the annual appraisal:

  
              description and condition of the property

    

          regional and local market conditions

          current and projected occupancy levels 

          highest and best use of the property 

          cost approach sales comparison approach

          income approach including
    discounted cash flow analysis

B. Quarterly Updates. TIAA’s staff will update the independent appraisals on a quarterly basis.

     (i) Appraisal assumptions (e.g. discount rates and rates of inflation) will be reviewed and revised as necessary.

     (ii) Occupancy levels, cash flow, etc. will be reviewed as well as regional and local market conditions.

C. Accruals. The Accumulation and Liquidity Unit Values of the Account may change by a daily accrual of projected income and expenses during a given month. The Annuity
Unit values of the Account may change on the last calendar day of each month by the accrual of projected income and expenses for that month.

	
4.      		
Special Adjustments. The value of a given property could be adjusted at any time to reflect any immediate or significant changes in value.	
	 

75

	
5.      		
Limits and Supervision.	
	 
	 	
A. The Independent Fiduciary receives quarterly valuation reports from TIAA whichdetail Account activity. The format of these reports will be developed with the Independent Fiduciary. The Fiduciary will, therefore, be familiar with Account properties. 	
	 
	 	
B. Daily accruals of income and expenses, as well as incremental adjustments in property value (from quarterly updates), will be reported to the Independent Fiduciary as they are included in the Unit value calculation.	
	 
	 	
C. Material changes in value (as described in D. below) will be approved by the Independent Fiduciary prior to inclusion in a Unit Value calculation	
	 
	 	
D. TIAA cannot, without the prior approval of the Independent Fiduciary, change the values of one or more properties if such changes would exceed the following limits: 	

          (i) The adjustment would result in a 6 percent increase or decrease in the value of a given property since the last external appraisal of that property;

          (ii) The adjustments would result in a greater than 2 percent change in the value of the Account since the prior monthly valuation date; or

          (iii) The adjustments would result in a greater than 4 percent change in the value of the Account within any calendar quarter.

76

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