Document:

Exhibit

REAL PROPERTY PURCHASE AND SALE
AGREEMENT, AND JOINT ESCROW INSTRUCTIONS

(NEVADA RANCH)

by and between

SAN JOAQUIN FARMS, LLC,
a Washington limited liability company authorized
to do business in the State of California as
WASHINGTON SAN JOAQUIN FARMS, LLC,

“Seller,”

and

NEVADA RANCH MERCED, LP,
a Delaware limited partnership

or its assignee(s) and/or nominee(s), collectively “Buyer,”

DATED SEPTEMBER 13, 2016

TABLE OF CONTENTS

	
		
	ARTICLE
	PAGE

	TABLE OF CONTENTS
	i

	RECITALS
	1

	I.   THE PRIMARY TERMS
	2

	II.   CONSTRUCTION; DEFINITIONS
	5

	III.   PURCHASE AND SALE OF THE PROPERTY
	12

	IV.   CONDITIONS TO CLOSE OF ESCROW
	14

	V.   COVENANTS, REPRESENTATIONS AND WARRANTIES
	18

	VI.   TITLE, ESCROW AND CLOSING
	27

	VII.   MISCELLANEOUS
	30

	LIST OF EXHIBITS
	39

REAL PROPERTY PURCHASE AND SALE
AGREEMENT, AND JOINT ESCROW INSTRUCTIONS

(NEVADA RANCH)

This REAL PROPERTY PURCHASE AND SALE AGREEMENT, AND JOINT ESCROW INSTRUCTIONS (this “Agreement”) is dated and effective as of this thirteenth (13th) day of September, 2016 (the “Effective Date”), between SAN JOAQUIN FARMS, LLC, a Washington limited liability company authorized to do business in the State of California as WASHINGTON SAN JOAQUIN FARMS, LLC (“Seller”), and NEVADA RANCH MERCED, LP, a Delaware limited partnership, or its assignee(s) and/or nominee(s), (collectively “Buyer”) who agree and contract as described below.  Seller and Buyer are referred to singularly as a “party” and collectively as the “parties” on a generic basis.

Recitals

This Agreement is made and entered into in reliance on the accuracy of the following facts and circumstances, which are acknowledged by the parties to be accurate, complete and true:

A.Seller is the owner in fee of that certain agricultural real property referred to as the “Nevada Ranch” consisting of approximately one thousand one hundred twenty-six and eighty hundredths (1,126.80 assessed acs.), located in Merced County, California, identified as Merced County Assessor’s Parcel Nos. 068-130-028, -029, -031, -032, -033, -034 and -044, and legally described in Exhibit “A” and incorporated herein by reference as if fully set forth at length (the “Land”);

B.Seller, as the landlord, leases the Land to OLAM FARMING, INC., a Delaware corporation authorized to do business in the State of California (“Tenant”) pursuant to their “Agricultural Lease (Nevada Ranch)” dated August 7, 2012, which also was memorialized by the “Memorandum of Agricultural Lease (Nevada Ranch -- Merced County)” between Seller and Tenant dated August 7, 2012, and recorded as Document No. 2012-027857 in the Merced County Official Records on August 7, 2012 (the “Lease”);

C.The term “Property” means singularly or collectively, on a generic basis, the following: (i) the Land; (ii) the Appurtenant Rights (as defined in Section 2.3); (iii) the Lease; (iv) any and all oil, gas, minerals and other hydrocarbon substances, and minerals, including, without limitation, all coal, metals, ores, sand, gravel and the like within or underlying the Property, and owned by Seller and not reserved in prior deeds of record, if any; and, (v) any and all water, water agreements or contracts, water rights (whether riparian, appropriative, groundwater, overlying, prescriptive, surface water or otherwise, and whether or not appurtenant), and water stock in, relating to or concerning the Land, or within or underlying the Land, and owned by Seller and not reserved or excepted in prior deeds of record, if any, and which are assignable to and assumable by Buyer;

D.The Property does not include, and specifically excludes, any tangible personal property.  The Property also does not include, and specifically excludes, any and all amenities, betterments, buildings, fixtures, structures and other improvements thereon, whether above-or belowground, if any, including, without limitation,  almond trees, wells, pumps, motors, electrical panels, electrical hookups, water conveyance and discharge facilities, pipelines and irrigation systems (the “Excluded Improvements”).  The significant Excluded Improvements are described in Exhibit “B,” attached hereto and incorporated herein by reference as if fully set forth at length, and for the most part belong to the respective Tenant of the Property;

E.The Property is primarily planted to almond trees; and,

F.F.    Seller desires to sell the Property to Buyer, and Buyer desires to purchase the Property from Seller, pursuant to the conditions, covenants, provisions and terms of this Agreement.

NOW, THEREFORE, in consideration of the mutual promises contained in this Agreement and of other good and valuable consideration, the receipt and sufficiency of which they expressly acknowledge, the parties agree and contract as follows:

The Agreement

ARTICLE I.  THE PRIMARY TERMS

	
						
	

   The following terms shall have the meanings specified, when used in this Agreement:

	1.1.  PURCHASE PRICE AND ALLOCATION
	1.1.1.   Purchase Price.  The Purchase Price is the sum of Thirteen Million Two Hundred Thirty One Thousand Eight Hundred Thirty Two Dollars and No Cents ($13,231,832.00) payable in either cash, cashier’s check, or by wire transfer to Seller. 

	1.1.2.   Allocation.  The Purchase Price shall be allocated amongst the legal parcels of the Property pursuant to Section 3.4

	1.2.  THE DEPOSIT
	Buyer shall pay an initial deposit into Escrow in the amount of One Hundred Forty Thousand Dollars and No Cents ($140,000.00) (the “Deposit”).  The Deposit shall be deposited into an interest bearing account proposed by Title Company and approved by the parties on or before one (1) business day after the Effective Date.  At Closing, the Deposit shall be applicable to the Purchase Price.  Subject to the terms and provisions of this Agreement, the Deposit shall be: (i) considered nonrefundable after the expiration of the Due Diligence Period (as defined in Section 1.3) if Buyer does not terminate this Agreement within the Due Diligence Period; (ii) returned to Buyer if it terminates this Agreement within the Due Diligence Period; or, (iii) returned to Buyer in the event of a Seller default pursuant to Section 7.2.  Interest shall inure to the Buyer.

	1.3  DUE DILIGENCE PERIOD
	Commencing on the Effective Date and expiring at 5:00 p.m., Pacific Time, on September 13, 2016 (“Due Diligence Period”).

	1.4.  TITLE REVIEW PERIOD
	Commencing on the Effective Date and expiring at 5:00 p.m., Pacific Time, on September 13, 2016 (“Title Review Period”).

	1.5.  CLOSING
	The consummation of the transaction contemplated by this Agreement and the Escrow that shall occur on the Closing Date (as defined in Section 1.6).

	1.6.  CLOSING DATE
	Subject to Section 3.6, if this Agreement is not terminated within the Due Diligence Period by Buyer, the Closing shall occur on Tuesday, September 13, 2016.

	1.7.  CLOSING COSTS

Closing costs shall be allocated and paid by the parties as follows:
	Cost, Expense or Fee
	Responsible Party

	The Preliminary Title Report (as defined in Section 2.3).
	Fifty percent (50%) by each party.

	Premium for the Title Policy (as defined in Section 2.3).
	Fifty percent (50%) by each party.

	Premium for any costs of Title Policy attributable to ALTA Extended Coverage and any endorsements desired by Buyer, any inspection fee charged by the Title Company, tax certificates, municipal and utility lien certificates, and any other Title Company charges.
	Buyer

	Premium for any costs of a lender’s policy of title insurance required by any lender providing financing for Buyer’s purchase of the Property, if any.
	Buyer

	Costs of Survey and/or any revisions, modifications or re-certifications thereto.
	Buyer

	Costs for UCC and other similar judgment or lien searches, if any.
	Fifty percent (50%) by each party.

	Costs of recording the Grant Deed (as defined in Section 2.3), including recording fees and documentary transfer taxes, and costs of recording lien releases or reconveyances releasing Property as collateral for Seller’s debts.
	Fifty percent (50%) by each party.

	All other recording costs, expenses and fees, provided that each party shall pay its own attorney’s fees.
	Fifty percent (50%) by each party.

	Any escrow fee charged by Title Company for holding the Deposit (as defined in this Article I) or conducting the Closing.
	Fifty percent (50%) by each party.

	All other closing charges, costs, expenses and fees.
	Fifty percent (50%) by each party.

	 
	1.8.  NOTICE ADDRESSES
	Seller:   Mr. Neil Jehle
Asset Manager
COTTONWOOD AG MANAGEMENT, LLC
2365 Carillon Point
Kirkland, Washington  98033
Telephone No. (425) 296-5510
Telefax No. (425)803-0459
Email:   neilj@cottonwoodag.com

With a copies to:

Scott R. Vokey, Esq.
COTTONWOOD AG MANAGEMENT, LLC
2365 Carillon Point
Kirkland, Washington  98033
      &
P. O. Box 654
Kirkland, WA  98093
Telephone No. (425) 889-7947
Telefax No. (425) 803-0459
Emails:   scottv@bmgigroup.com
      juleep@bmgigroup.com
      legal@bmgigroup.com

Charles D. Melton, Esq.
Partner
CLIFFORD & BROWN,
  A PROFESSIONAL CORPORATION
1430 Truxtun Avenue, Suite 900
Bakersfield, California  93301-5230
Telephone No. (661) 322-6023, Ext. 118
Telefax No. (661) 322-3508
Email:   cmelton@clifford-brownlaw.com
	 

	 
	Buyer:   Mr. Bill Reiman
Managing Director
GLADSTONE LAND CORPORATION
1521 Westbranch Drive, Suite 100
McLean, Virginia  22102
Telephone No.  (805) 263-4778
Email:   bill.r@gladstoneland.com

Robert P. McDaniel, Jr.
BASS, BERRY & SIMS, PLC
100 Peabody Place, Suite 1300
Memphis, Tennessee  38103 
Telephone No.  (901) 543-5946
Telefax No.  (888) 765-6437
Email:   rmcdaniel@bassberry.com
	 

	 
	Title Co.:   Melodie T. Rochelle
Chicago Title Insurance Company
5516 Falmouth St., Ste. 200
Richmond, VA 23230
Telephone No. (804) 521-5713
Telefax No. (804) 521-5756 
Email:  melodie.rochelle@fnf.com
	 

[REMAINDER OF THOS PAGE INTENTIONALLY LEFT BLANK] 

ARTICLE II.  CONSTRUCTION; DEFINITIONS

2.1.    Generally.  Unless the provisions or context otherwise require, Article I and this Article II shall govern the construction and interpretation of this Agreement and all documents executed and delivered pursuant to it.  The captions of this Agreement’s articles and sections do not define in any manner their scope, meaning or intent.  All exhibits referred to in this Agreement or any documents executed and delivered pursuant to it are deemed to be incorporated by reference as if fully set forth at length.  The present tense includes the past and future tenses, and the future tense includes the present tense.  The masculine, feminine or neuter gender are deemed to include the other.  The singular or plural number are deemed to include the other.  The words “shall” and “agrees” are mandatory, and “may” is permissive.  The term “person” includes individuals, corporations, partnerships, trusts and other entities and associations.  The words “include,” “includes” and “including” shall be deemed to be followed by the phrase “without limitation.”  The words “approval,” “consent” and “notice” shall be deemed to be preceded by the word “written.”  Locative adverbs such as “herein,” “hereto” and “hereunder” shall refer to this Agreement in its entirety and not to any particular paragraph, provision or section.  The parties acknowledge, understand and agree that their respective agents and representatives executing this Agreement on behalf of each of the parties are learned and conversant in the English language, and that the English language shall control the construction, enforcement, governance, interpretation and performance of this Agreement.  The parties acknowledge that each party and its counsel, if applicable, have reviewed and revised this Agreement and that the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Agreement or any amendments or exhibits hereto.  The time in which any act under this Agreement is to be done shall be computed by excluding the first (1st) day and including the last day.  If the last day of any time period shall fall on a Saturday, Sunday or a federal and/or State of California bank holiday, then the duration of such time period shall be extended so that it shall end on the next succeeding day which is not a Saturday, Sunday or a federal and/or State of California bank holiday.  Unless preceded by the word “business,” the word “day” shall mean a “calendar” day.  The phrase “business day” shall mean a day that is not a Saturday, Sunday, or a federal and/or State of California bank holiday.

2.2.    Opinions and Determinations; Approval in Writing. Where the conditions, provisions or terms of this Agreement provide for action to be based on the approval, certification, consent, determination, judgment, opinion or review, of any party, such conditions, provisions or terms are not intended to be and shall not be construed as permitting such approval, certification, consent, determination, judgment, opinion or review to be arbitrary, capricious or unreasonable, nor shall such approval, certification, consent, determination, opinion or review be unreasonably conditioned, delayed or withheld except as expressly set forth in this Agreement.  Any document or condition requiring a party’s approval shall be transmitted in writing to the other party.

2.3.    Definitions.  Capitalized terms not otherwise defined below shall have the meanings provided in Article I.

Agreement.  “Agreement” has the meaning defined in the opening paragraph of this Agreement.

Appurtenant Rights.  “Appurtenant Rights” means singularly and collectively on a generic basis Seller’s interest, right and title, if any, in the following intangible personal property concerning the Property:

		
	a.
	Any existing permits for the Property, including all licenses, building, conditional use, site plan and other permits, certificates of occupancy and any other certificates, approvals or authorizations required by law or by any Governmental Agencies or private persons having jurisdiction over the Property or any part thereof, for the occupancy, use, operation or ownership thereof, if any, and only to the extent assignable;

		
	b.
	Engineering work, plans, permits and other documentation or intangible personal property prepared or obtained in anticipation of developing and entitling the Property;

		
	c.
	Architectural and engineering drawings, plans, renderings, specifications, surveys and studies, and other applications submitted to the Governmental Agencies (as defined below), including, without limitation, improvements drawings, plans, renderings and specifications;

		
	d.
	Subject to Paragraphs “e” and “f” below, development approvals required or helpful to develop the Property, including, without limitation, the approvals, certifications, consents, declarations, easements, entitlements, fee credits, growth allocations, licenses, maps, permits, plans, reports, rights, rights of way, studies and zone changes required by any Governmental Agencies or private persons, all as may be required to develop the Property and construct thereon and obtain permits for its eventual marketing, construction and occupancy). 

		
	e.
	Subject to Paragraph “f” below, all fee credits and reimbursements, if any, applicable to the Property;

		
	f.
	All rights of Seller pursuant to any covenants, conditions and restrictions relating to the Property (including, but not limited to all rights of Seller as declarant under any such documents;

		
	g.
	Appurtenant easements and rights-of-way; and,

		
	h.
	Sewer and utility rights connected with the Property.

The Appurtenant Rights do not include, and specifically exclude, any and all licenses or permits relating to the Crops and/or the Excluded Improvements.

Assignment.  “Assignment” means the assignment between Seller, as the assignor, and Buyer, as the assignee, in substantially the same form attached hereto as Exhibit “C” and incorporated herein by reference as if fully set forth at length.

Buyer.  “Buyer” has the meaning defined in the opening paragraph of this Agreement.  

Cap.  “Cap” has the meaning defined in Section 5.2.3.

C.F.R.  “C.F.R.” has the meaning defined in the definition of “Hazardous Materials” in this Section 2.3.

Closing.  “Closing” means the event of the transfer of title to the Property from Seller to Buyer on or before the Closing Date.

Closing Costs.  “Closing Costs” has the meaning defined in Section 1.7.

Closing Date.  “Closing Date” has the meaning defined in Section 1.6.

Condemnation Action.  “Condemnation Action” has the meaning defined in Section 4.4.2.

Conditions of Title.  “Conditions of Title” means the following exceptions to title to the Property:

		
	a.
	The lien for real property taxes and assessments not yet due and payable;

		
	b.
	The lien for supplemental taxes, if any, assessed pursuant to the provisions of Revenue and Taxation Code Sections 75 through 75.80, inclusive, not yet due and payable;

		
	c.
	All easements, licenses, rights of ways and similar agreements, of record as of the date of execution of this Agreement.

		
	d.
	A Land Conservation Contract(s) under the California Land Conservation Act of 1965, as amended, contained at California Government Code Section 51200 et seq., commonly referred as the “Williamson Act;”

		
	e.
	The Lease;

		
	f.
	The Wetlands Matter, as it applies to the Nevada Ranch, as defined in this Section 2.3; 

		
	g.
	All applicable zoning Laws and building restrictions now and in effect as of the Closing;

		
	h.
	Any exceptions to title created by Buyer; and,

		
	i.
	Any other exceptions to title approved or deemed approved by Buyer pursuant to Section 4.2(b), or specifically waived in writing by Buyer.

Crops.  “Crops” collectively means any and all of Tenant’s right, title and interest in any and all crops currently growing, harvested, or to be grown upon the Land under the respective Lease, whether remaining located on the Land or in storage or other facilities and the proceeds of the sale or other disposition of the same.  The Crops are owned solely and exclusively by Tenant.

Deed.  “Deed” means the deed from Seller, as the grantor, to Buyer, as the grantee, in substantially the same form attached hereto as Exhibit “D” and incorporated herein by reference as if fully set forth at length.  

Deposit.  “Deposit” has the meaning defined in Section 1.2, and shall include all interest accrued thereon.

Due Diligence Period.  “Due Diligence Period” has the meaning defined in Section 1.3.

Effective Date.  “Effective Date” has the meaning defined in the opening paragraph of this Agreement.

Environmental Law.  “Environmental Law” means any applicable Law (as defined in this Section 2.3) relating to the control, disposal, exposure to, generation, handling, regulation of, storage, treatment or transportation of Hazardous Materials (as defined in this Section 2.3).

Escrow.  “Escrow” means the escrow opened at the Title Company to consummate the transaction contemplated by this Agreement pursuant to Section 6.2.

Escrow Instructions.  “Escrow Instructions” collectively means this Agreement and the Title Company’s standard form escrow instructions consistent with this Agreement.  The parties acknowledge and understand that the Escrow Instructions may be supplemented at the request of the Title Company.  To the extent of any inconsistency between such standard form escrow instructions and this Agreement, this Agreement shall control, govern, take precedence and otherwise prevail.

Exchange Documents.  “Exchange Documents” has the meaning defined in Section 7.18.

Excluded Improvements.  “Excluded Improvements” has the meaning defined in Paragraph “D” of the “Recitals” portion of this Agreement.

Fax.  “Fax” has the meaning defined in Section 7.6(iii).

Governmental Agency; Governmental Agencies.  “Governmental Agency” means the UNITED STATES GOVERNMENT, the STATE OF CALIFORNIA, COUNTY OF MERCED, California political subdivision, and/or all other applicable courts, governmental authorities, public and quasi-public agencies, or rulemaking authorities having jurisdiction over the Property.  “Governmental Agencies” is the plural of Governmental Agency.

Hazardous Materials.  “Hazardous Materials” means and refers to any substance, material or waste which is or becomes: (i) regulated by any Governmental Agency as a hazardous waste; (ii) is defined as a “solid waste,” “sludge,” “hazardous waste,” “extremely hazardous waste,” “restricted hazardous waste,” “Non-RCRA hazardous waste,” “RCRA hazardous waste,” or “recyclable material,” under any federal, state or local statute, regulation, or ordinance, including, without limitation, California Health and Safety Code Sections 25115, 25117, 25117.9, 25120.2, 25120.5,  25122.7, 25140 or 25141; (iii) defined as a “Hazardous Substance” under California Health and Safety Code Section 25316; (iv) defined as a “Hazardous Material,” “Hazardous Substance” or “Hazardous Waste” under California Health and Safety Code Section 25501; (v) defined as a “Hazardous Substance” under California Health and Safety Code Section 25281; (vi) asbestos; (vii) petroleum products, including, without limitation, petroleum, gasoline, used oil, crude oil, waste oil, and any fraction thereof, natural gas, natural gas liquefied, methane gas, natural gas, or synthetic fuels, (viii) materials defined as hazardous or extremely hazardous pursuant to any other applicable Law not referenced herein; (ix) pesticides, herbicides and fungicides; (x) polychlorinated biphenyls; (xi) defined as a “Hazardous Substance” pursuant to Section 311 of the Federal Water Pollution Control Act (33 United States Code [“U.S.C.”] Section 1251 et seq.); (xii) defined as a “Hazardous Waste” pursuant to Section 1004 of the Federal Resource Conservation and Recovery Act, 42 U.S.C. Section 6901 et seq., or 40 Code of Federal Regulations (“C.F.R.”) Section 239 et seq.; (xiii) defined as a “Hazardous Substance” or “Mixed Waste” pursuant to Section 101 of the Comprehensive Environmental Response Compensation and Liability Act, 42 U.S.C. Section 9601 et seq., and regulations promulgated thereunder; (xiv) defined as a “Hazardous Substance” pursuant to Section 401.15 of the Clean Water Act, 40 C.F.R. Section 116; (xv) defined as an “Extremely Hazardous Substance” pursuant to Section 302 of the Superfund Amendments and Reauthorizations Act of 1986, 42 U.S.C. Section 11002 et seq. or 40 C.F.R. Section 300 et seq.; (xvi) defined as “medical waste” pursuant to California Health and Safety Code Section 25023.2; (xvii) defined as a “Hazardous Air Pollutant” pursuant to the Federal Clean Air Act, 42 U.S.C. Section 7401 et seq.; (xviii) defined as likely to cause “unreasonable adverse effects on the environment” pursuant to the Federal Insecticide, Fungicide, and Rodenticide Act, 7 U.S.C. Section 136 et seq.; or, (xix) defined as like to present an “unreasonable risk of injury to health or the environment” pursuant to Toxic Substances Control Act of 1976, 15 U.S.C. Section 2601 et seq.  For the purposes of this Agreement, used tires and asphalt shall not be considered Hazardous Materials.

Improvements.  “Improvements” collectively means any and all of the following equipment, fixtures, improvements and tangible personal property, concerning the Land:

		
	a.
	Permanent irrigation and water distribution system in, on or under the Property, including, without limitation, the following to the extent applicable:

		
	i.
	Permanently installed aboveground and belowground irrigation and water distribution equipment, including, without limitation, fixed irrigation equipment (including irrigation and return pumps), casings, risers, water well structures, culverts, irrigation and water pipelines, motors, pumps, pump house, utility power lines and valves, including, without limitation, filter stations and related systems and all related power and control units and systems; and,

		
	ii.
	Permanently installed ditches, ponds, lined and unlined reservoirs and weirs; and,

		
	b.
	Amenities, appurtenances, betterments, buildings, fixtures, structures and other improvements in, on or under, or affixed to the Property, whether above-or belowground, including, without limitation, such fixtures that would be considered for a trade, manufacture, ornamental or domestic use pursuant and subject to California Civil Code Section 1019 including, without limitation, shops, storage sheds, and fuel and chemical storage tanks.

The Improvements do not include, and specifically exclude, the Crops and/or the Excluded Improvements.

Independent Contract Consideration.  “Independent Contract Consideration” has the meaning defined in Section 3.5.

Land.  “Land” has the meaning defined in Paragraph “A” of the “Recitals” portion of this Agreement.

Law; Laws.  “Laws” collectively shall mean any and all acts, administrative or judicial precedents or authorities, including the interpretation or administration thereof by any governmental authority or entity charged with the enforcement, interpretation or administration thereof, agreements with, approvals, authorizations, awards, codes, consents, declarations, decrees, directed duties, directives, guideline documents, guidelines, edicts, exemptions, injunctions, judgments, laws, licenses, non-contractual restriction, orders, ordinances, permits, process, regulations, requests, requirements, rules, rulings, sanctions, standards, statutes, treatises, waivers and/or writs, now in force or as may be enacted or amended, changed, modified, promulgated, revised, or supplemented, of any and all Government Agencies.  “Law” is the singular version of Laws.

Lease Assignment.  “Lease Assignment” means the “Assignment and Assumption of Lease” conveying Seller’s interest in the Lease in substantially the same form attached hereto as Exhibit “E” and incorporated herein by reference as if fully set forth at length.

Lease.  “Lease” has the meaning defined in Paragraph “B” of the “Recitals” portion of this Agreement.

NRCS.  “NRCS” has the meaning defined in the definition of “The Wetlands Matter” in this Section 2.3.

Notice to Tenant.  “Notice to Tenant” has the meaning defined in Section 6.11.

Opening of Escrow.  “Opening of Escrow” shall mean the date that both an original of this Agreement signed by the parties has been deposited into Escrow, and Buyer has deposited the full amount of the Deposit into Escrow.

Party; Parties.  “Party” and “parties” have the meanings defined in the opening paragraph of this Agreement.

Preliminary Title Report.  “Preliminary Title Report” means the preliminary title report for the Land in an electronic/“ePre” format with hyperlinks to such title exception documents (collectively the “Title Documents”) and, if applicable, a colored map(s) with plotted easements issued by the Title Company at Seller’s sole cost and expense without right of reimbursement from Buyer pursuant to Section 4.1(c); provided, however, that any additional cost incurred to issue a preliminary title report precedent to issuance of an ALTA Owner’s Policy of Title Insurance with extended coverage, if elected by Buyer as provided in the definition of “Title Policy” in this Section 2.3, shall be borne by Buyer without right of reimbursement from Seller.

Property.  “Property” has the meaning defined in Paragraph “C” of the “Recitals” portion of this Agreement.  “Property” collectively means Seller’s interest in the following:

		
	a.
	The Land;

		
	b.
	The Appurtenant Rights

		
	c.
	The Improvements;

		
	d.
	The Lease;

		
	e.
	Any and all oil, gas and other hydrocarbon substances, and minerals, including, without limitation, all coal, metals, ores, sand, gravel and the like within or underlying the Land and owned by Seller and not reserved or excepted in prior deeds of record, if any; and,

		
	f.
	Any and all water, water agreements or contracts, water rights (whether riparian, appropriative, groundwater, overlying, prescriptive, surface water or otherwise, and whether or not appurtenant), and water stock concerning, or relating to the Land, or within or underlying the Land and owned by Seller and not reserved or excepted in prior deeds of record, if any, and that are assignable by Seller and assumable by Buyer.

The Property does not include, and specifically excludes, the Crop and the Excluded Improvements.

Property Documents.  “Property Documents” has the meaning defined in Section 4.1(a).

Purchase Price.  “Purchase Price” has the meaning defined in Section 1.1.1.

Seller.  “Seller” has the meaning defined in the opening paragraph of this Agreement.

Seller Group.  “Seller Group” has the meaning defined in Section 5.2.1

Taxes.  “Taxes” has the meaning defined in Section 6.6.1.

Tenant.  “Tenant” has the meaning defined in Paragraph “B” of the “Recitals” portion of this Agreement.

Tenant Estoppel Certificate.  “Tenant Estoppel Certificate” means the “Tenant Estoppel Certificate” completed and then executed by Tenant in favor of Buyer in substantially the same form attached hereto as Exhibit “F” and incorporated herein by reference as if fully set forth at length.

Title Company.  “Title Company” means CHICAGO TITLE INSURANCE COMPANY, a Nebraska corporation.

Title Defect.  “Title Defect” has the meaning defined in Section 4.2(b).

Title Documents.  “Title Documents” has the meaning defined in the definition of “Preliminary Title Report” in this Section 2.3.

Title Policy.  “Title Policy” means the respective CLTA Owner’s Policy of Title Insurance for the Land in the amount of the Purchase Price, issued by the Title Company that insures that title to the Property is vested in Buyer subject only to the Conditions of Title.  At the election of Buyer, Buyer may obtain an ALTA Owner’s Policy of Title Insurance with extended coverage, together with any endorsements thereto as may be requested by Buyer, subject to Buyer’s payment of the additional premium or cost therefor.  Seller agrees to provide an owner’s/seller’s affidavit or declaration to the Title Company in order to provide it with the information necessary to comply with commitment requirements, to provide extended coverage (i.e., for the removal or modification of the pre-printed exceptions for parties in possession, mechanics’ liens and notice of assessments), or otherwise give facts about ownership or title aspects of the Property.

Title Review Period.  “Title Review Period” has the meaning defined in Section 1.4.

U.S.C.  “U.S.C.” has the defined in the definition of “Hazardous Materials” in this Section 2.3.

The Wetlands Matter.  As part of Tenant’s acquisition of Nevada Ranch, as predecessor in interest to Seller, and prior to selling Nevada Ranch to Seller, Tenant discovered that there were notices of potential environmental violations from the UNITED STATES ENVIRONMENTAL PROTECTION AGENCY and the UNITED STATES ARMY CORPS OF ENGINEERS, both federal public agencies; and the NATURAL RESOURCES CONSERVATION SERVICE, a federal public agency (“NRCS”), concerning the disturbance or destruction of “wetlands” on Nevada Ranch.  Said potential environmental violations concerning the Nevada Ranch have now been amicably resolved pursuant to the following documents:

		
	a.
	The “Grasslands Mitigation Bank Agreement for Sale of Mitigation Credits” between WESTERVELT ECOLOGICAL SERVICES, LLC, a Delaware limited liability company authorized to do business in the State of California, and Tenant dated November 12, 2015; and,

		
	b.
	The “USDA-NRCS Wetland Mitigation Agreement [--] Mitigation Bank” between NRCS, Seller,  HOSTETLER RANCHES, LLC, a California limited liability company, and Tenant dated November 16, 2015; and,

		
	c.
	The “Hostetler-Olam Wetland Mitigation, Certified Wetland Determination” letter from NRCS to the consultant for, among others, Seller and Tenant dated February 22, 2016.

The term the “Wetlands Matter” collectively refers to the foregoing facts and circumstances and there settlement.]

ARTICLE III.  PURCHASE AND SALE OF THE PROPERTY

3.1.    Purchase and Sale; “AS IS”/”WITH ALL FAULTS” Condition.  Seller agrees to sell the Property to Buyer and Buyer agrees to purchase the Property from Seller upon and “AS IS”/“WITH ALL FAULTS”/“WHERE IS” basis and upon all other terms, covenants and conditions set forth in this Agreement.  Except for and subject to Seller’s express warranties and representations made in Section 5.1 or elsewhere in this Agreement, Buyer acknowledges and agrees that upon Closing, Seller agrees to sell the Property to Buyer and Buyer agrees to purchase the Property from Seller upon an “AS IS” / “WITH ALL FAULTS” / “WHERE IS” basis.  Except for Seller’s express warranties and representations made in Section 5.1, the implied warranties made in the Deed as specified in California Civil Code Section 1113, or elsewhere in this Agreement, Buyer has not relied and will not rely on, and Seller has not made and is not liable for or bound by, any other express or implied warranties, guarantees, statements, representations or information pertaining to the Property or relating thereto (specifically including, without limitation, property information packages distributed with respect to the Property) made or furnished by Seller, agent or third party representing or purporting to represent Seller, to whomever made or given, directly or indirectly, orally or in writing, including, without limitation, statements, documents or other information provided by Tenant.  Except for Seller’s express warranties and representations made in Section 5.1, the implied warranties made in the Deed as specified in California Civil Code Section 1113 or elsewhere in this Agreement, Buyer represents that it is a knowledgeable, experienced and sophisticated purchaser of real estate and that it is relying solely on its own expertise and that of Buyer’s consultants in purchasing the Property and shall make an independent verification of the accuracy of any documents and information provided by Seller.  Buyer will conduct such inspections and investigations of the Property as Buyer deems necessary, including, without limitation, the physical and environmental conditions thereof, and, subject to Seller’s express warranties and representations made in Section 5.1, the implied warranties made in the Deed as specified in California Civil Code Section 1113 or elsewhere in this Agreement, shall rely upon same.  Buyer acknowledges that, if Seller complies with the conditions, provisions and terms of this Agreement, Seller shall have afforded Buyer a full opportunity to conduct such investigations of the Property as Buyer deemed necessary to satisfy itself as to the condition of the Property and the existence or non-existence or curative action to be taken with respect to any Hazardous Materials on or discharged from the Property, and will rely solely upon same and not upon any information provided by or on behalf of Seller or its agents or employees with respect thereto other than such representations, warranties and covenants of Seller as are expressly set forth in this Agreement.  Buyer also acknowledges that the Property has been operated as a commercial farm for many years, and that certain agricultural chemicals, some of which may be considered toxic or hazardous, have been used and stored thereon.  Upon Closing but subject to Seller’s express warranties and representations made in Section 5.1, the implied warranties made in the Deed as specified in California Civil Code Section 1113 or elsewhere in this Agreement, Buyer shall assume the risk that adverse matters, including, without limitation, adverse physical or construction defects or adverse environmental, health or safety conditions, may not have been revealed by Buyer’s inspections and investigations.  Buyer hereby represents and warrants to Seller that Buyer shall have had, by the Closing Date, adequate opportunity to consult with legal counsel, agricultural, environmental and other advisors and consultants in connection with the transaction contemplated by this Agreement.  Buyer waives any and all rights or remedies it may have or be entitled to, deriving from disparity in size or from any significant disparate bargaining position in relation to Seller.  AGAIN, EXCEPT FOR SELLER’S EXPRESS REPRESENTATIONS AND WARRANTIES MADE IN SECTION 5.1, THE IMPLIED WARRANTIES MADE IN THE DEED AS SPECIFIED IN CALIFORNIA CIVIL CODE SECTION 1113 OR ELSEWHERE IN THIS AGREEMENT, BUYER REPRESENTS THAT IT IS PURCHASING THE PROPERTY IN AN “AS IS”/“WITH ALL FAULTS”/”WHERE IS” CONDITION.  AGAIN, EXCEPT FOR SELLER’S EXPRESS REPRESENTATIONS AND WARRANTIES MADE IN SECTION 5.1, THE IMPLIED WARRANTIES MADE IN THE DEED AS SPECIFIED IN CALIFORNIA CIVIL CODE SECTION 1113 OR ELSEWHERE IN THIS AGREEMENT, BUYER DOES HEREBY WAIVE, AND SELLER DOES HEREBY DISCLAIM, ALL WARRANTIES OF ANY TYPE OF KIND WHATSOEVER WITH RESPECT TO THE PROPERTY, WHETHER EXPRESS OR IMPLIED, INCLUDING, BY WAY OF DESCRIPTION BUT NOT LIMITATION, THOSE OF FITNESS FOR A PARTICULAR PURPOSE AND USE, TENANTABILITY OR HABITABILITY.

3.2.    Payment of the Purchase Price.  Buyer shall pay the Purchase Price to Seller on the Closing Date pursuant to Section 6.4.2(a).  The Purchase Price shall be paid as follows:

		
	a.
	The Deposit; and

		
	b.
	The balance of Thirteen Million Ninety-One Thousand Eight Hundred Thirty-Two Dollars and No Cents ($13,091,832.00), payable in either cash, cashier’s check, or by wire transfer to Seller at the Close of Escrow.

As between the legal parcels of Property, the Purchase Price shall be allocated pursuant to Section 3.4.

3.3.    Deposit.  Buyer shall pay into Escrow the Deposit in the amounts, upon the conditions, provisions’ and terms, and within the time periods specified in Section 1.2.  Upon the expiration of the Due Diligence Period and if Buyer has not elected to terminate the Agreement and the transaction contemplated thereunder, and any accrued interest thereon, the Deposit shall be applicable to the Purchase Price and nonrefundable except as otherwise provided in this Agreement.  The parties agree that the Deposit shall be applied to the Purchase Price at the Closing pursuant to 6.4.2(a) or, in the event of a default or breach of this Agreement by Buyer, the Deposit shall constitute liquidated damages pursuant to Section 7.1.  The parties also agree that the Deposit shall be fully refundable to Buyer in the event Buyer exercises its right to terminate the Agreement during the Due Diligence Period, pursuant to Section 4.2(a) or in the event of a default or breach of this Agreement by Seller.

3.4.    Allocation of Purchase Price.  Subject to Section 6.9.2, the parties acknowledge, understand and agree that the Purchase Price shall be allocated only and solely to the Property.  For all purposes, including for real property like-kind exchange purposes under Section 7.18, the parties also acknowledge, understand and agree that the Purchase Price shall be allocated amongst the legal parcels constituting the Property as follows:

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK] 

	
					
	ASSESSOR’S PARCEL NO.
	ASSESSED ACREAGE
	PURCHASE PRICE ALLOCATION

	068-130-028
	157.00
	

	$1,843,626.00
	

	068-130-029
	159.00
	

	$1,867,112.00
	

	068-130-031
	159.40
	

	$1,871,809.00
	

	068-130-032
	163.80
	

	$1,923,477.00
	

	068-130-033
	158.90
	

	$1,865,937.00
	

	068-130-034
	162.40
	

	$1,907,037.00
	

	068-130-044
	166.30
	

	$1,925,834.00
	

	TOTAL
	1,126.80
	

	$13,231,832.00
	

3.5.    Independent Consideration.  Contemporaneously with the execution and delivery of this Agreement and as part of the Deposit, Buyer shall pay to Seller, and Seller hereby acknowledges the receipt of said payment by its execution of this Agreement, the amount of One Hundred Dollars and No Cents ($100.00) (the “Independent Contract Consideration”).  The Independent Contract Consideration is independent consideration for Buyer’s right to inspect and conduct due diligence regarding the Property for the purpose of considering its purchase from Seller pursuant to this Agreement.  The Independent Contract Consideration is in addition to and independent of any other consideration or payment provided in this Agreement; provided, however, that it is applicable to the Purchase Price at the Closing.  The Independent Contract Consideration is non-refundable, is bargained for and fully earned, and shall be retained by Seller notwithstanding any other condition, provision or term of this Agreement.  Buyer’s duty, obligation and responsibility to deliver the Independent Contract Consideration shall survive the termination of this Agreement.

3.6.    No Loan Contingency.  Buyer obtaining a loan for the purchase of the Property is not a contingency of this Agreement.  If Buyer does not obtain a loan and as a result Buyer is unable to purchase the Property in accordance with the terms of this Agreement, Seller shall be entitled to the Deposit and any and all other legal remedies as provided herein.  Notwithstanding the foregoing or anything herein to the contrary, Buyer shall have the right, one time, to extend the Closing Date, but not the Due Diligence Period, by fifteen (15) days in order only to secure financing which right may be exercised by delivering written notice to Seller prior to the end of the Due Diligence Period.  

ARTICLE IV.  CONDITIONS TO CLOSE OF ESCROW

4.1.    Conditions.  Buyer’s duty, obligation and responsibility to purchase the Property or otherwise to perform any duty, obligation or responsibility under this Agreement shall be expressly conditioned upon the fulfillment of each of the following conditions on or before the expiration of the Due Diligence Period, unless another time period is specified below:

		
	a.
	To the extent that such documents are applicable, exist, are in Seller’s custody or possession, or are available to Seller, Buyer’s review and approval of the documents, information and materials concerning or related to the Property contained in the electronic data room set up by Seller and to which Buyer has had access prior to the Effective Date (collectively the “Property Documents”).  Under no circumstances shall Seller be obligated to make available to Buyer any documents protected by attorney-client privilege or attorney work product protection, tax returns, internal memoranda, appraisals, or other proprietary documentation and/or information;

		
	b.
	Seller shall provide Buyer with the Tenant Estoppel Certificate completed and then executed by Tenant;

		
	c.
	On or before the expiration of the Title Review Period, to review same and approve or disapprove of the Preliminary Title Report and all exceptions to title shown therein;

		
	d.
	Buyer’s inspection and approval in Buyer’s sole and absolute discretion of any and all access, economic, endangered plant or animal species or habitat issues or restrictions, engineering, entitlement, environmental, land use, legal, permitting, physical, soils, surveying, utility, water and zoning matters relating to the Property including, without limitation, Buyer’s approval of the following: (i) the feasibility of the Property for Buyer’s anticipated use of the Property; (ii) Buyer’s review and approval of a soils report issued at Buyer’s sole cost and expense by a soils engineer designated by Buyer, and a Phase 1 environmental site assessment issued at Buyer’s sole cost and expense by an environmental consultant designated by Buyer; (iii) Buyer’s inspection and approval of the physical condition of the Property and its appurtenances, including any water wells and irrigation systems, including current water volume, historic well pumping records, if any, and equipment condition; and, (iv) the results of any inspection, test, examination, audit, study, review, analysis or other review conducted by Buyer, including, without limitation, site surveys (including an ALTA survey, if any), zoning and land use restrictions, public and private, present and future access, geological and environmental testing, drainage conditions, the presence of Hazardous Materials, and any other condition or circumstance on or relating to the Property which may affect the Property or Buyer’s anticipated use of the Property; and,

		
	e.
	The commitment of the Title Company to issue, subject only to payment of the normal premium, and the issuance of the Title Policy upon the Closing, and Seller shall have delivered to the Title Company such documents as are reasonable and customary in similar transactions, and shall have performed such other acts, as the Title Company shall reasonably require in order to issue the Title Policy.

The failure of Buyer to provide written notice to Seller that the Property is acceptable on or before the expiration of the Due Diligence Period shall be deemed by the parties as Buyer’s approval of the Property pursuant to Section 4.2(b).

4.2.    Failure of Conditions.  Subject to Section 6.4, should Buyer disapprove any of the conditions set forth in Section 4.1 within the time specified, Buyer shall have the power, exercisable in its sole and absolute discretion by giving of written notice to Seller, of either of the following:

		
	a.
	To terminate this Agreement and recover any amounts paid on account of the Purchase Price, including the Deposit,  less the Independent Consideration, or any documents delivered pursuant to the provisions of this Agreement, in which event the parties shall be relieved and released of any further duties, obligations and responsibilities hereunder except for Seller’s right to retain the Independent Contract Consideration as provided in Section 3.5, any continuing indemnification obligations as set forth in Section 5.4, and subject to the payment of any escrow and title cancellation fees as provided in Section 6.7; or,

		
	b.
	To waive such condition and proceed with the Closing; provided, however, that Buyer’s failure to so approve or disapprove of any such condition shall be deemed approval thereof; provided further, however, that should Buyer disapprove of any exception to title (the “Title Defect”) pursuant to Section 4.1(c) within the time specified, Buyer shall first give five (5) business days written notice of the Title Defect which it has disapproved, and Seller shall have an additional five (5) business days after receiving the notice of Title Defect thereafter to determine whether it is willing or able to correct such Title Defect.

Seller shall give written notice to Buyer within such five (5) business day period whether it is willing or able to correct such Title Defect.  If Seller is unwilling or unable to correct any such Title Defect, Buyer shall have the right to exercise the remedy contained in Section 4.2(a).  If Seller states that it is willing and able to do so, then Seller shall proceed to correct the Title Defect as soon as is practicable, and in all events prior to Closing, and if Seller is thereafter unable to correct the Title Defect prior to the Closing, Buyer shall continue to have the right to exercise the remedy specified in Section 4.2(a).

No Title Defect may be insured over or removed of record by indemnification or similar arrangement with the Title Company without Buyer’s prior written consent, which shall not be unreasonably withheld, conditioned or delayed.  No satisfaction or waiver of any condition by Buyer shall reduce or eliminate the rights or remedies of Buyer by reason of any breach of any covenant, representation, or warranty made by Seller in this Agreement.  Notwithstanding anything in this Agreement to the contrary, Seller shall remove any and all monetary encumbrances, deeds of trust, liens, mortgages, etc., against the Property at or prior to the Closing at Seller’s sole cost and expense with no right of reimbursement from Buyer.  If Seller is unwilling or unable to remove such monetary encumbrances, deeds of trust, liens, mortgages, etc., against the Property at or prior to the Closing, Buyer shall have the right to exercise the remedy contained in Section 4.2(a).

4.3.    Approval of Conditions; Conditions Precedent to Closing.

4.3.1.    Approval of Conditions.  Subject to Sections 4.4 and 5.1, Buyer’s approval of all the conditions set forth in Section 4.1, or Buyer’s written waiver of all disapproved and/or unsatisfied conditions set forth in Section 4.2 shall constitute Buyer’s acknowledgment and agreement that Buyer has examined and approved all matters concerning the Property and all other rights to be acquired.

4.3.2.    Conditions Precedent to Seller’s Obligation to Close of Escrow.  The following conditions are for Seller’s benefit only to close Escrow/the Closing and consummate the sale of the Property shall be satisfied as of the Closing Date:

		
	a.
	Buyer shall have deposited with Escrow all duly executed documents required to be deposited pursuant to Section 6.4.2(b) or any other provision of this Agreement;

		
	b.
	Buyer shall have deposited the Purchase Price minus the Deposit plus any additional amounts required under Section 6.4.2(a) into Escrow; and,

		
	c.
	The representations and warranties made by Buyer in this Agreement shall be accurate, correct and true as of the Closing Date with the same effect as though such representations and warranties had been made or given at the Closing, and Buyer shall have performed and complied in all respects with its duties, obligations and responsibilities under this Agreement which are to be performed by Buyer or complied with by Buyer prior to or upon the Closing Date, including, without limitation, Buyer’s deposit with Title Company of all duly executed documents set forth in Section 6.4.2.

Each of the conditions specified in this Section 4.3.2 are solely for Seller’s benefit and may only be waived in writing by Seller.

4.3.3.    Conditions Precedent to Buyer’s Close of Escrow.  The following conditions are for Buyer’s benefit only to close Escrow/the Closing and to consummate the purchase the Property shall be satisfied as of the Closing Date:

		
	a.
	Seller shall have deposited with Escrow all duly executed documents required to be deposited pursuant to Section 6.4.1 or any other provision of this Agreement;

		
	b.
	There shall be no pending or threatened condemnation or taking of any part of the Property as of the Closing Date;

		
	c.
	The commitment of the Title Company to issue, subject only to payment of the normal premium, and the issuance of the Title Policy upon the Closing Date, and Seller shall have delivered to the Title Company such documents as are reasonable and customary in similar transactions, and shall have performed such other acts, as the Title Company shall reasonably require in order to issue the Title Policy effective as of the Closing Date;

		
	d.
	Subject to the farming and harvesting of the Crops, and the possible implementation of Laws concerning water, the Property being, in all material respects, in the same condition on the Closing Date as it was on the Effective Date;

		
	e.
	Seller’s delivery to Buyer upon the Closing Date of fee title to the Property by delivery of the Deed pursuant to Section 6.1 and the fulfillment of each of the other conditions and covenants contained in Article VI, including, without limitation, delivery of possession of the Property pursuant to Section 6.10;

		
	f.
	The representations and warranties made by Seller in this Agreement shall be accurate, correct and true as of the Closing Date with the same effect as though such representations and warranties had been made or given at the Closing, and Seller shall have performed and complied in all respects with its duties, obligations and responsibilities under this Agreement which are to be performed by Seller or complied with by Seller prior to or upon the Closing Date, including, without limitation, Seller’s deposit with Title Company of all duly executed documents set forth in Section 6.4.1;

		
	g.
	Seller’s delivery of possession of the Property pursuant to Section 6.10; and,

		
	h.
	There shall have been no material adverse change in the financial condition of the Tenant prior to the end of the Due Diligence Period.

Each of the conditions specified in this Section 4.3.3 are solely for Buyer’s benefit and may only be waived in writing by Buyer.

4.4.    Damage or Destruction; Eminent Domain or Condemnation; Maintenance of Property.

4.4.1.    Destruction of the Property.  If, prior to the Closing, there shall be catastrophic damage to or destruction of all or a major portion of the Property, Buyer shall have the right to terminate this Agreement, in which event the Deposit shall be returned to Buyer and neither party shall have any further rights or obligations hereunder.  If Buyer does not elect to terminate the contract pursuant to this Section 4.4.1 at Closing, Buyer and Seller shall proceed with the Closing (with no change in the amount of the Purchase Price) and Seller shall assign all insurance proceeds to Buyer received from its insurance carriers and others as a consequence of such destruction.  The provisions of California Civil Code Section 1662(a) are hereby waived by the parties, and this Section 4.4.1 shall govern any damage or of such destruction of the Property.

4.4.2.    Eminent Domain or Condemnation of the Property.  If, prior to the Closing, any of the Property is the subject of any eminent domain or condemnation proceeding, whether actual or threatened (in writing), temporary or permanent, partial or total (a “Condemnation Action”), and the Condemnation Action would, in Buyer’s sole and absolute judgment, adversely affect the use of the Property or result in the diminution in the value of the Property, Buyer may, at its option, either: (i) terminate this Agreement as provided in Section 4.2; or, (ii) close the transaction contemplated herein, in which event Seller shall assign to Buyer all of Seller’s right, title and interest in and to the Condemnation Action and any awards, damages or other compensation arising from the Condemnation Action, when such sums are received by Seller or on the Closing, whichever occurs later.  Unless or until Buyer has exercised its right to terminate this Agreement, Seller shall take no action with respect to the Condemnation Action without the prior written consent of Buyer.

4.4.3.    Maintenance, Farming and Operation of the Property.  Except as otherwise provided in Sections 4.4.1 and 4.4.2, Seller shall use commercially reasonable efforts to require Tenant to maintain, farm and operate the Property until the Closing Date in the same manner as it is being maintained, farmed and operated as of the Effective Date.

ARTICLE V.  COVENANTS, REPRESENTATIONS AND WARRANTIES

5.1.    Covenants, Representations and Warranties.  The parties each make the following covenants, representations and warranties, in addition to any covenants, representations or warranties specified to be made by Seller or Buyer elsewhere in this Agreement, each of which representations and warranties only shall do the following: (i) survive the Closing and the recordation of the Deed as set forth at the end of this Section 5.1; (ii) be deemed material and being relied upon by the other; (iii) be true in all respects as of the date each is made; (iv) the term “to the best of Seller’s knowledge” when used in this Section 5.1 means the actual knowledge of NEIL JEHLE and GRIFFIN MOAG, without the imputation of knowledge either from facts which may be disclosed in the public record or that might have been obtained from diligent inquiry or investigation; and, (v) be true in all material respects on the Closing:

Covenants, Representations and Warranties

		
	a.
	Seller shall grant Buyer and its agents and employees, as of the Effective Date, the right to enter the Property at any time prior to the Closing Date for the purpose of inspecting the Property, making such surveys or performing such tests or studies as it may deem appropriate and performing any other duties, obligations and/or responsibilities of Buyer under this Agreement, including satisfaction of any of the conditions set forth in Article IV; provided, however, that: (i) all such activities shall not include any invasive or destructive testing or any phase II environmental tests without the prior written consent of Seller as exercised in its reasonable discretion; (ii) shall be at Buyer’s sole cost and expense without right of reimbursement from Seller; (iii) Buyer shall not unreasonably interfere with Seller’s and/or Tenant’s existing activities on the Property; and, (iv) Buyer shall indemnify, hold harmless and defend Seller and Tenant from and against any claim, loss, damage or expense, including, without limitation, any and all reasonable attorneys’ fees, asserted against or suffered by Seller as a result of any such entry pursuant to Section 5.4.2.  Buyer will keep the Property free from mechanic’s and materialmens’ liens attributable or arising from its activities on the Property.  Buyer shall repair any and all damage to any portion of the Property including, without limitation, the Crops, arising out of the acts or omissions of Buyer or its representatives while on the Property or in the conduct of any evaluations or other activities contemplated by this Agreement.  Buyer shall maintain comprehensive general liability and property damage insurance in an amount not less than One Million Dollars and No Cents ($1,000,000.00) covering its and its agents’ advisors and employees’ activities on the Property and naming Seller and Tenant as additional insured and providing for thirty (30) days’ prior written notice to Seller of any cancellation thereof and shall, promptly after execution of this Agreement (and prior to Buyer or any of its representatives going onto the Property), deliver to Seller proof satisfactory to Seller that such insurance is in force and effect and that Seller and tenant have been named as an additional insured;

		
	b.
	As of the Effective Date and prior to the Closing, Seller shall not do any of the following without Buyer’s prior written consent: (i) enter into any agreement, contract or lease with respect to the Property which will survive the Closing or otherwise materially affect the use, operation or enjoyment of the Property after the Closing without Buyer’s prior written consent; or, (ii) change, modify, supplement, amend or cancel any existing agreement, contract or lease with respect to the Property, including, without limitation, the Lease, without Buyer’s prior written consent.  Buyer’s failure to approve any request for consent hereunder within five (5) business days from written request shall be deemed to be Buyer’s disapproval of same;

		
	c.
	To the best of Seller’s knowledge, Seller hereby represents and warrants that there are no, and Seller has not received any written notice that there are any, actions, suits, proceedings, judgments, orders, decrees, defaults, delinquencies or deficiencies existing, pending, noticed, threatened, proposed or contemplated, against the Property or against Seller or relating to its business, properties or assets before or by any court, administrative agency or private party including, without limitation, planned public improvements, special assessments or condemnation actions, which in any way would affect Seller’s ability to carry out its duties, obligations and/or responsibilities under this Agreement or would result in any charge being levied or assessed against, or will result in the creation of any lien or assessment on or against, the Property, except as otherwise shown in the Conditions of Title;

		
	d.
	To the best of Seller’s knowledge, Seller hereby represents and warrants as follows: (i) that neither this Agreement, nor anything provided to be done hereunder, shall violate, cause a breach of or constitute a default under any written or oral contract, agreement, instrument, indenture, mortgage, deed of trust, bank loan, credit agreement, note, evidence of indebtedness, lease, license, undertaking or other agreement or instrument to which Seller is a party, or which affects the Property; or, (ii) that consummation of the sale, transfer, assignment and further encumbrance contemplated herein shall not result in the violation of any applicable Law;

		
	e.
	To the best of Seller’s knowledge, Seller hereby represents and warrants that none of the Property Documents contain or shall intentionally contain any materially untrue statement of a material fact or omit or shall intentionally omit to state a material fact, necessary to make the statements of facts contained therein not misleading.  Seller shall promptly notify Buyer of any change in facts of which Seller actually becomes aware that would make any representation and warranty of Seller as contained herein materially incorrect.  The parties also understand that such duty, obligation and responsibility to provide the foregoing notice to Buyer shall in no way relieve Seller of any liability for a breach by Seller of any of its covenants, representations or warranties contained in this Agreement, except that Seller shall have no liability under this Agreement in the event of a change in circumstances that occurs after the Effective Date.  In the event Seller advises Buyer in writing of a change in circumstances that would render any representation and warranty materially misleading, Buyer shall have the right to terminate this Agreement by written notice to Seller within three (3) business days of receipt of said information, in which event the Deposit shall be returned to Buyer, and except for the obligations that survive termination, Buyer shall have no further obligations to Seller nor shall Seller have any further obligation to Buyer.  Should Buyer not so terminate the Agreement and proceed to Closing, Buyer shall be deemed to have waived any and all rights with respect to the inaccuracy of any such representation and warranty;

Property Status

		
	f.
	Subject to the Conditions of Title, and to the best of Seller’s knowledge and except as may be set forth in any of the documents provided to Buyer by Seller under Section 4.1(a), Seller hereby represents and warrants, that Seller has no knowledge and has not received written notice that: (x) any person or entity has a right of first refusal, right to purchase, to lease or to possess or occupy the Property; and, (y) there are no uncured breaches of the easements included in the Conditions of Title.  To the best of Seller’s knowledge, Seller also hereby represents and warrants the following specifically with regard to the Lease: (i) any rent or additional rent due, owing and payable under the Lease has been paid in full and timely by Tenant; (ii) to the best of Seller’s knowledge, no breach exists on the part of Seller under the Lease; (iii) except as otherwise set forth in the letter of Seller to Tenant dated June 14, 2016, to the best of Seller’s knowledge, no breach exists on the part of Tenant under the Lease; (iv) there are no rights or options whatsoever to purchase or otherwise acquire the Property or any portion thereof under the Lease; and, (v) no person or firm other than Seller and Tenant are in possession of the Property.  Nothing contained in the Deed shall limit the foregoing warranty;

		
	g.
	To the best of Seller’s knowledge, Seller hereby represents and warrants that the Property and/or the operations thereon are not in any material violation in any way of any applicable Law, including, without limitation, any zoning restriction;

		
	h.
	Except for agricultural chemicals and fuel used in agricultural operations, some of which may be considered toxic or hazardous, that have been, and continue to be legally used and stored thereon by Seller and/or Tenant, also except as disclosed in the Property Documents, and additionally subject to the best of Seller’s knowledge, Seller, hereby represents and warrants as follows: (i) that there are no underground storage tanks on the Property; (ii) that there are no Hazardous Materials on the Property, whether on, in or under the soil, groundwater or otherwise; (iii) that Seller has not stored, deposited, buried or in any other way left beneath the ground on the Property any materials whatsoever, whether organic or inorganic, except in accordance with applicable Laws, including, without limitation, Environmental Laws; (iv) that there are no and have been no private or governmental claims or judicial or administrative actions or proceedings pending, or threatened, against Seller relating to environmental impairment or regulatory requirements in connection with the Property or any operations thereon; and, (v) that there has been no release of Hazardous Materials located on or under the Property that would require notice to Buyer pursuant to California Health and Safety Code Section 25359.7;

		
	i.
	With the exception of the Lease, Seller represents and warrants that, as of the Closing, there shall be no outstanding contracts made by Seller for any improvements to the Property which have not been fully paid, except for contracts assigned and assumed by Buyer as provided in this Agreement, or any unpaid utility charges or employee salaries or other accrued benefits relating to operations on the Property prior to the Closing Date.  Seller shall cause to be discharged as of the Closing all other encumbrances, liens, bonds and mechanics’ or materialmen’s liens arising from any labor and material furnished to the Property prior to the Closing;

Party Status

		
	j.
	Seller represents and warrants that it is not a foreign individual, foreign corporation, foreign limited liability company, foreign partnership or foreign estate as defined in the Internal Revenue Code and Income Tax Regulations. Seller shall deliver to the Title Company and Buyer on the Closing a duly executed Affidavit of Non-Foreign Status for each Seller;

		
	k.
	Seller represents and warrants as follows: (i) it is a single-member limited liability company duly organized under and by virtue of the Laws of the State of Washington, is active and in good standing, authorized to do business in the State of California, and disregarded for federal income tax purposes; (ii) it has the full right and authority to enter into this Agreement, and to consummate the sale, transfer, assignment and further encumbrance contemplated herein; (iii) that the person or persons signatory to this Agreement and any documents executed pursuant hereto on behalf of Seller have full power and authority to bind Seller and shall duly execute and, if required, acknowledge such documents; and, (iv) all such authorizations shall remain in full force and effect at all times necessary to fully consummate the transaction subject to this Agreement;

		
	l.
	Buyer represents and warrants as follows: (i) it is a a limited partnership duly organized under and by virtue of the Laws of the State of Delaware, active and in good standing, and authorized to do business in the State of California; (ii) it has the full right and authority to enter into this Agreement, and to consummate the sale, transfer, assignment and further encumbrance contemplated herein; (iii) that the person or persons signatory to this Agreement and any documents executed pursuant hereto on their behalf have full power and authority to bind them and shall duly execute and, if required, acknowledge such documents; and, (iv) all such authorizations shall remain in full force and effect at all times necessary to fully consummate the transaction subject to this Agreement;

		
	m.
	Each party represents and warrants that: (i) it is not acting on behalf of any person, group, entity, or nation named by any Executive Order or the United States Treasury Department, through its Office of Foreign Assets Control or otherwise, as a terrorist, “Specially Designated National,” “Blocked Person,” or other banned or blocked person, entity, nation, or transaction pursuant to any Law that is enforced or administered by OFFICE OF FOREIGN ASSETS CONTROL, a federal public agency, or another federal Governmental Agency; and, (ii) Buyer is not engaged in this transaction on behalf of, or instigating or facilitating this transaction on behalf of, any such person, group, entity or nation.  Notwithstanding anything contained in the foregoing to the contrary, Buyer shall have no duty to investigate or confirm that any stockholders of GLADSTONE LAND CORPORATION, a Maryland corporation, or unit holders of GLADSTONE LAND LIMITED PARTNERSHIP, a Delaware limited partnership, are in compliance with the provisions of this section, and any violation by any such shareholders or unit holders shall not be a breach or default by Seller hereunder;

		
	n.
	Seller represents and warrants that it has not: (i) made a general assignment for the benefit of creditors; (ii) filed any voluntary petition in bankruptcy or suffered the filing of an involuntary petition by Seller’s creditors; (iii) suffered the appointment of a receiver to take possession of all, or substantially all, of Seller’s assets; (iv) suffered the attachment or other judicial seizure of all, or substantially all, of Seller’s assets; or, (v) admitted in writing its inability to pay its debts as they come due;

		
	o.
	Buyer represents and warrants that it is a knowledgeable, experienced, and sophisticated buyer of land and property used in agriculture and a developer of real estate, and that it is relying solely on its own expertise and that of Buyer’s advisors and consultants in purchasing the Property.  Buyer acknowledges and agrees that it will have the opportunity to conduct such inspections, investigations and other independent examinations of the Property and related matters, including, without limitation, the physical and environmental conditions thereof, during the Due Diligence Period and will rely upon same and not upon any statements of Seller except as expressly set forth in this Agreement; and,

		
	p.
	Except as otherwise provided in Section 7.5, the parties shall each be liable for their own attorneys’ fees and disbursements incurred in connection with the drafting and negotiation of this Agreement and matters related thereto.

This Section 5.1 shall survive the Closing and the recordation of the Deed.  However, upon the expiration of six (6) months  following the Closing, the liability of each party in connection with each representation or warranty made by it either in this Section 5.1 or elsewhere in this Agreement or in any of the documents delivered in connection with the Closing shall cease, except as regards to: (i) the liabilities of the Seller in connection with the implied warranties made in each Deed as specified in California Civil Code Section 1113; and, (ii) as regards to the liabilities of Seller and Buyer in connection with each breach or inaccuracy of any other representation or warranty of which a party has given written notice to the other party prior to the end of such six (6) months period.  To be effective for such purpose, any such written notice must identify or refer to with reasonable particularity the circumstance or state of affairs that constitutes or has resulted in such a breach or inaccuracy by the party to whom the notice is delivered.  The parties acknowledge, understand and agree that this Section 5.1 is meant to control, govern, take precedence and prevail over any applicable statute of limitations.

5.2.    General Disclaimer; Release; Limitation of Damages.

5.2.1.    General Disclaimer.  NOTWITHSTANDING ANYTHING CONTAINED HEREIN TO THE CONTRARY, AND EXCEPT FOR: (a) SELLER’S EXPRESS REPRESENTATIONS AND WARRANTIES SET FORTH IN SECTION 5.1; (b) IMPLIED WARRANTIES MADE IN THE DEED AS SPECIFIED IN CALIFORNIA CIVIL CODE SECTION 1113; AND/OR, (c) ELSEWHERE IN THIS AGREEMENT, BUYER ACKNOWLEDGES, UNDERSTANDS AND AGREES THAT NEITHER SELLER NOR ITS GENERAL PARTNER, LIMITED PARTNERS, MEMBERS, MANAGERS, AGENTS, INDEPENDENT CONTRACTORS, CONSULTANTS (INCLUDING, WITHOUT LIMITATION, ACCOUNTANTS AND ATTORNEYS), EMPLOYEES AND/OR REPRESENTATIVES, OR ANY AFFILIATE OR CONTROLLING PERSON THEREOF (COLLECTIVELY “SELLER GROUP”), HAS MADE AND IS NOT NOW MAKING, AND BUYER HAS NOT RELIED UPON AND WILL NOT RELY UPON (DIRECTLY OR INDIRECTLY), ANY GUARANTIES, REPRESENTATIONS OR WARRANTIES OF ANY KIND OR CHARACTER, EXPRESS OR IMPLIED, ORAL OR WRITTEN, PAST, PRESENT OR FUTURE, WITH RESPECT TO THE PROPERTY, INCLUDING, WITHOUT LIMITATION GUARANTIES, REPRESENTATIONS AND/OR WARRANTIES AS TO: (i) MATTERS OF TITLE; (ii) ENVIRONMENTAL MATTERS RELATING TO THE PROPERTY OR ANY PORTION THEREOF; (iii) GEOLOGICAL CONDITIONS, INCLUDING, WITHOUT LIMITATION, SUBSIDENCE, SUBSURFACE CONDITIONS, WATER TABLE, UNDERGROUND WATER RESERVOIRS, LIMITATIONS REGARDING THE WITHDRAWAL OF WATER, AND EARTHQUAKE FAULTS AND THE RESULTING DAMAGE OF PAST AND/OR FUTURE EARTHQUAKES; (iv) WHETHER, AND TO THE EXTENT TO WHICH, THE PROPERTY OR ANY PORTION THEREOF IS AFFECTED BY ANY STREAM (SURFACE OR UNDERGROUND), BODY OF WATER, FLOOD PRONE AREA, FLOOD PLAIN, FLOODWAY OR SPECIAL FLOOD HAZARD; (v) DRAINAGE; (vi) SOIL CONDITIONS, INCLUDING THE EXISTENCE OF INSTABILITY, PAST SOIL REPAIRS, SOIL ADDITIONS OR CONDITIONS OF SOIL FILL, OR SUSCEPTIBILITY TO LANDSLIDES, OR THE SUFFICIENCY OF ANY UNDERSHORING; (vii) ZONING TO WHICH THE PROPERTY OR ANY PORTION THEREOF MAY BE SUBJECT; (viii) THE AVAILABILITY OF ANY UTILITIES TO THE PROPERTY OR ANY PORTION THEREOF INCLUDING, WITHOUT LIMITATION, ELECTRICITY, GAS, SEWAGE AND WATER; (ix) USAGES OF ADJOINING PROPERTY; (x) ACCESS TO THE PROPERTY OR ANY PORTION THEREOF; (xi) THE VALUE, COMPLIANCE WITH THE DESIGNS, DRAWINGS, PLANS AND SPECIFICATIONS, SIZE, LOCATION, AGE, USE, DESIGN, QUALITY, DESCRIPTIONS, SUITABILITY, STRUCTURAL INTEGRITY, OPERATION, TITLE TO, OR PHYSICAL OR FINANCIAL CONDITION OF THE PROPERTY OR ANY PORTION THEREOF; (xii) ANY INCOME, EXPENSES, CHARGES, LIENS, ENCUMBRANCES, RIGHTS OR CLAIMS ON OR AFFECTING OR PERTAINING TO THE PROPERTY OR ANY PART THEREOF; (xiii) THE PRESENCE OF HAZARDOUS SUBSTANCES IN OR ON, UNDER OR IN THE VICINITY OF THE PROPERTY; (xiv) THE CONDITION OR USE OF THE PROPERTY OR COMPLIANCE OF THE PROPERTY WITH ANY OR ALL PAST, PRESENT OR FUTURE APPLICABLE LAWS, INCLUDING, WITHOUT LIMITATION, ANY ENVIRONMENTAL LAWS; (xv) THE EXISTENCE OR NON-EXISTENCE OF UNDERGROUND STORAGE TANKS; (xvi) ANY OTHER MATTER AFFECTING THE STABILITY OR INTEGRITY OF THE PROPERTY; (xvii) THE POTENTIAL FOR FURTHER DEVELOPMENT OF THE PROPERTY; (xviii) THE EXISTENCE OF VESTED LAND USE, ZONING OR BUILDING ENTITLEMENTS AFFECTING THE PROPERTY; (xix) THE MERCHANTABILITY OF THE PROPERTY OR FITNESS OF THE PROPERTY FOR ANY PARTICULAR PURPOSE, INCLUDING AGRICULTURE (BUYER AFFIRMING THAT BUYER HAS NOT RELIED ON THE SKILL OR JUDGMENT OF SELLER OR ANY MEMBER OF SELLER GROUP TO SELECT OR FURNISH THE PROPERTY FOR ANY PARTICULAR PURPOSE, AND THAT SELLER MAKES NO WARRANTY THAT THE PROPERTY IS FIT FOR ANY PARTICULAR PURPOSE); OR, (xx) TAX CONSEQUENCES (INCLUDING, WITHOUT LIMITATION THE AMOUNT, USE OR PROVISIONS RELATING TO ANY TAX CREDITS).  BUYER ACKNOWLEDGES, UNDERSTANDS AND AGREES ALSO THAT, SUBJECT TO SECTION 5.1(e), ANY DOCUMENTATION AND/OR INFORMATION OF ANY TYPE WHICH BUYER HAS RECEIVED OR MAY RECEIVE FROM SELLER OR ANY MEMBER OF SELLER GROUP, INCLUDING, WITHOUT LIMITATION, ANY ENVIRONMENTAL ASSESSMENTS, AUDITS, STUDIES AND SURVEYS, IS FURNISHED ON THE EXPRESS CONDITION THAT, EXCEPT AS EXPRESSLY SET FORTH HEREIN, BUYER SHALL NOT RELY THEREON, BUT SHALL MAKE AN INDEPENDENT VERIFICATION OF THE ACCURACY OF SUCH INFORMATION, ALL SUCH INFORMATION BEING FURNISHED, EXCEPT AS SPECIFICALLY SET FORTH HEREIN, WITHOUT ANY REPRESENTATION OR WARRANTY WHATSOEVER.

/s/ LP        
Buyer’s Initials

5.2.2.    Release.  Buyer shall rely solely upon its due diligence upon and inspection of the Property in determining the Property’s physical condition and upon the following: (a) Seller’s express representations and warranties set forth in Section 5.1; and, (b) the implied warranties made in the Deed as specified in California Civil Code Section 1113 or elsewhere in this Agreement.  Except for the foregoing, Buyer waives, as of the Closing, Buyer’s right to recover from Seller or any member of Seller Group, any and all damages, losses, liabilities, costs or expenses whatsoever, and claims therefor, whether direct or indirect, known or unknown, or foreseen or unforeseen, which may arise from or be related to: (i) the physical condition of the Property; and, (ii) the Property’s compliance, or lack of compliance with any applicable Laws, including, without limitation, Environmental Laws.  Buyer expressly waives the benefits of California Civil Code Section 1542, which provides as follows:

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.

In this connection and to the extent permitted by applicable Law, Buyer hereby agrees, represents and warrants that Buyer realizes and acknowledges that factual matters now unknown to it may have given or may hereafter give rise to causes of action, claims, demands, debts, controversies, damages, costs, losses and expenses which are presently unknown, unanticipated and unsuspected, and Buyer further agrees, represents and warrants that the waivers and releases herein have been negotiated and agreed upon in light of that realization and that Buyer nevertheless hereby intends, subject to Seller’s express representations and warranties set forth in Section 5.1, and the implied warranties made in the Deed as specified in California Civil Code Section 1113, or elsewhere in this agreement, to release, discharge and acquit Seller and each and every member of Seller Group, from any such unknown causes of action, claims, demands, debts, controversies, damages, costs, losses and expenses which might in any way be included as a material portion of the consideration given to Seller by Buyer in exchange for Seller’s performance hereunder.  Seller has given Buyer material concessions regarding this transaction in exchange for Buyer agreeing to the provisions of this Section 5.2.2.

Each party has initialed this Section 5.2.2 to further indicate their awareness and acceptance of each and every provision of this Section 5.2.2.

/s/ AH                /s/ LP    
Seller’s Initials            Buyer’s Initials

5.2.3.    Limitation of Damages; Waiver of Consequential Damages.  TO THE MAXIMUM EXTENT PERMITTED UNDER THE LAWS OF THE STATE OF CALIFORNIA, AND SUBJECT TO THE PROVISIONS OF SECTION 7.1 BELOW, THE PARTIES AGREE TO LIMIT THE LIABILITY OF EACH PARTY, WHETHER SINGULARLY, COLLECTIVELY OR IN ANY COMBINATION WHATSOEVER, TO THE OTHER FOR ANY AND ALL DAMAGES, LOSSES, LIABILITIES, COSTS OR EXPENSES WHATSOEVER, AND CLAIMS THEREFOR, WHETHER DIRECT OR INDIRECT, KNOWN OR UNKNOWN, OR FORESEEN OR UNFORESEEN, INCLUDING, WITHOUT LIMITATION, ATTORNEYS’ FEES AND DISBURSEMENTS, AND EXPERT WITNESS FEES AND COSTS, SO THAT THE TOTAL AGGREGATE LIABILITY OF EITHER PARTY TO THE OTHER UNDER THIS AGREEMENT AND THE TRANSACTION CONTEMPLATED THEREUNDER SHALL NOT EXCEED THE CUMULATIVE SUM OF TWO HUNDRED EIGHTY-FIVE THOUSAND DOLLARS AND NO CENTS ($285,00,000.00) (THE “CAP”).  AGAIN TO THE MAXIMUM EXTENT PERMITTED UNDER THE LAWS OF THE STATE OF CALIFORNIA AND SUBJECT TO THE CAP AND THE PROVISIONS OF SECTION 7.1 BELOW, EACH PARTY ALSO AGREES TO WAIVE THE RIGHTS TO SEEK AND TO BE ENTITLED TO RECOVER FROM THE OTHER GROUP CONSEQUENTIAL, EXEMPLARY, INCIDENTAL, PUNITIVE AND/OR SPECIAL DAMAGES.  THE LIMITATION OF DAMAGES AND THE WAIVER OF CONSEQUENTIAL, EXEMPLARY, INCIDENTAL, PUNITIVE AND/OR SPECIAL DAMAGES CONTAINED IN THIS SECTION 5.2.3 SHALL APPLY: (a) REGARDLESS OF THE CAUSE OF ACTION OR LEGAL THEORY PLED OR ASSERTED EXCEPT FOR FRAUD; AND, (b) BOTH TO: (i) EACH PARTY’S DUTIES, OBLIGATIONS OR RESPONSIBILITIES UNDER THIS AGREEMENT; AND, (ii) TO ANY PROPERTY DOCUMENTS DELIVERED PURSUANT TO THIS AGREEMENT.

/s/ AH                /s/ LP    
Seller’s Initials            Buyer’s Initials

5.3    Effect of Contrary Actual Knowledge on Representations.  Seller shall have no liability to Buyer by reason of any breached or inaccurate representation or warranty made by either Seller in this Agreement, in any of the Property Documents, or in any other  documents delivered in connection with the applicable Closing if, prior to such Closing, Buyer has or comes to have (from whatever source, including, due diligence investigations or inspections, or the written disclosure by a Seller or its agents or employees) actual knowledge of such breach or inaccuracy, and Buyer nevertheless consummates the subject Closing.

5.4.    Indemnification.

5.4.1.    By Seller.  Subject to Sections 5.4.3 and 5.4.4, Seller shall waive any claim against Buyer for, and shall indemnify, hold harmless and defend Buyer against any claim, loss, damage or expense, including, without limitation, any and all reasonable attorneys’ fees and disbursements, asserted against or suffered by Buyer resulting from the following: (i) any breach by Seller of this Agreement; (ii) any liability or obligation of Seller to a third party that Buyer is not required to assume hereunder or accruing prior to such assumption, including, without limitation, any personal injury or property damage suffered in, on or about the Property by a third party or relating thereto occurring before the Closing (except that attributable to the negligence or intentional acts of Buyer or its agents, employees or representatives); or, (iii) the breach of any of the covenants, representations or warranties made by Seller herein, including, without limitation, breach of the warranty contained in Section 7.22.

5.4.2.    By Buyer.  Subject to Sections 5.4.3 and 5.4.4, Buyer shall waive any claim against Seller for, and shall indemnify, hold harmless and defend Seller against any claim, loss, damage or expense, including, without limitation, any and all reasonable attorneys’ fees and disbursements, asserted against or suffered by Seller resulting from the following: (i) any breach by Buyer of this Agreement; (ii) any liability or obligation of Buyer which Seller is not required to assume hereunder or accruing prior to such assumption, including, without limitation, any personal injury or property damage suffered in, on or about the Property or relating thereto occurring on or after the Closing (except that attributable to the negligence or intentional acts of Seller or its agents, employees or representatives); or, (iii) the breach of any of the covenants, representations or warranties made by Buyer herein, including, without limitation, breach of the warranty contained in Section 7.22.  Liability of Buyer to Seller for Buyer’s default or breach of this Agreement resulting in Buyer’s failure to close the Escrow shall be governed by Section 7.1.

5.4.3.    Notice of Claim or Demand.  In the event either Seller or Buyer receives notice of a claim or demand against which it is entitled to indemnification pursuant to either Section 5.4.1, or 5.4.2, as applicable, such party shall promptly give notice thereof to the other party.  The party obligated to defend and indemnify shall, within ten (10) days after receipt of such notice, take such measures as may be reasonably required to properly and effectively defend such claim, and may defend same with counsel of its own choosing approved by the other party (which approval shall not be unreasonably withheld or delayed).  In the event the party obligated to defend and indemnify refuses to defend such claim or fails to properly and effectively defend such claim, then the party entitled to a defense and indemnification may defend such claim with counsel of its own choosing at the expense of the party obligated to indemnify.  Each party and their counsel shall cooperate with the other party in the defense of any claim and shall keep the party being indemnified reasonably informed of the status of the claim.  The party being indemnified may participate in (but not control) the defense of such action all at its own expense without right of reimbursement from the indemnifying party.  In such event, the indemnified party may settle such claim without the consent of the indemnifying party.

5.4.4.    Remedies to Enforce Indemnification Rights.  Subject to Sections 5.1(a) and 7.2, the parties may enforce such indemnification rights by any legal or equitable remedies available to them; provided, however, that each party shall be liable to the other party in any such legal or equitable action solely for such party’s actual out-of-pocket/compensatory damages but shall not be liable to such party in any manner for consequential, incidental or punitive damages, or lost profits.

5.4.5.    Survival.  This Section 5.4 shall survive the Closing and the recordation of the Deed, or the earlier termination of this Agreement, except that Sections 5.4.1(i) and (ii), and 5.4.2(i), (ii) and (iii) shall not survive the termination of this Agreement prior to the Closing.

5.5.    Risk of Loss.  Risk of loss from all causes except the fault of Buyer shall remain upon Seller until the Close of Escrow occurs.  Seller shall continue to maintain the insurance, if any, that Seller currently maintains on the Property until the Closing or the earlier termination of this Agreement.  If, while risk of loss remains on Seller, the Property is damaged, except through fault of Buyer, in an amount less than twenty-five percent (25%) of the Purchase Price, Buyer shall elect to either terminate this Agreement (in which event the provisions of Section 4.2(a) shall apply) or maintain this Agreement in full force (in which event the provisions of Section 4.4.1, shall apply).  Damage in an amount equal to twenty-five percent (25%) or more of the Purchase Price is “material,” in which event, either party shall have the right to terminate this Agreement upon written notice to the other.

ARTICLE VI.  TITLE, ESCROW AND CLOSING

6.1.    Conditions of Title; Evidence of Title.  Seller shall convey title to the Property to Buyer by the Assignment, the Deed (subject only to the Conditions of Title, excluding any Title Defects which Seller is obligated to cure hereunder) and the Lease Assignment.  Delivery of title to the Land shall be evidenced by the willingness of the Title Company to issue, upon payment of its normal premium, the Title Policy.

6.2.    Escrow; Closing Date.  The parties acknowledge that they shall open the Escrow with the Title Company within three (3) business days of the Effective Date.  The parties also agree that the parties shall execute, deliver and deposit the Escrow Instructions, if any, to the Title Company within two (2) business days after the Title Company prepares and delivers them to the parties.  The parties shall consummate the transaction contemplated by this Agreement for the Property through the Escrow on or before the Closing Date.  Except as set forth in Sections 7.1 and 7.2, if the Escrow does not close on or before the Closing Date, then this Agreement shall automatically terminate and the Deposit shall be retained by Seller, and except for the obligations of either party that survive termination, the parties shall have no further obligations to one another.

6.3    Conflicting Demands.  Should Title Company receive or become aware of conflicting demands or claims with respect to the Escrow, the rights of any party, or funds, documents or property deposited with Title Company, Title Company shall have the right to discontinue any further acts until such conflict is resolved to its satisfaction, and it shall have the further right to commence or defend any action for the determination of such conflict.  The parties shall, immediately after demand therefore by Title Company, reimburse Title Company (in such respective proportions as Title Company shall determine) any reasonable attorneys’ fees and court costs incurred by Title Company pursuant to this Section 6.3.

6.4.    Deposit of Documents and Funds.

6.4.1.    By Seller.  Seller shall deposit or cause to be deposited into the Escrow at least one (1) business day before the Closing Date the following documents executed and, if applicable, acknowledged by Seller as required:

		
	a.
	Duplicate originals of the Assignment to each party;

		
	b.
	Original of the Deed;

		
	c.
	Duplicate originals of the Lease Assignment;

		
	d.
	A duly completed and executed affidavit of non-foreign status in compliance with Internal Revenue Code Section 1445 in the form attached hereto as Exhibit “G” attached hereto and incorporated herein by reference as if fully set forth at length;

		
	e.
	A duly completed and executed Form 593-C in compliance with California Revenue and Taxation Code Sections 18805 and 2613 for each Seller; and

		
	f.
	Such other documents as the Title Company may reasonably request or as may be reasonably requested to effect the transaction contemplated by this Agreement or to facilitate the Closing.

6.4.2.    By Buyer.  Buyer shall deposit or cause to be deposited into the Escrow at least one (1) business day before the Closing Date the following funds and documents:

		
	a.
	Cash, a cashier’s check issued by a federally-insured financial institution or wire transfer to Title Company in the amount of the Purchase Price (less the Deposit previously delivered) plus an additional amount sufficient to pay Buyer’s portion of the closing and escrow charges, costs, expenses and fees pursuant to Section 6.7 and also plus an additional amount to pay any sums due and owing to Seller pursuant to Section 6.6.1;

		
	b.
	Duplicate originals of the Assignment to each party;

		
	c.
	Duplicate originals of the Lease Assignment; 

		
	d.
	A duly completed respective preliminary change of ownership report in accordance with Revenue and Taxation Code Section 480.3 for the Land; and

		
	e.
	Such other documents as the Title Company may reasonably request or as may be reasonably requested to effect the transaction contemplated by this Agreement or to facilitate the Closing.

To the extent not delivered to Buyer as of the Closing Date, all original Property Documents shall be delivered to Buyer as of the Closing Date outside of Escrow.

6.5.    Closing.  No later than the Closing Date, the Title Company shall effectuate the Closing when: (i) the requirements of Section 6.4 have been satisfied; and, (ii) it is in a position to issue the Title Policy.  As part of the Closing, the Title Company shall provide the following documents to the parties indicated:

		
	a.
	Providing an original of the Assignment to each party;

		
	b.
	Recording the Deed (marked for return to Buyer) against the Nevada Ranch in the Merced County Official Records;

		
	c.
	Providing a copy of the duly recorded Deed to Seller after its recordation;

		
	d.
	Providing an original of the Lease Assignment to each party and a copy of same to Tenant;

		
	e.
	Issuing the  Title Policy for the Land to Buyer;

		
	f.
	Delivering Seller’s funds after deducting therefrom the amounts necessary to pay its portion of the Closing Costs, after adjusting for prorations;

		
	g.
	Obtaining written confirmation from the parties that they each have satisfied or waived all conditions outside of the Escrow prior to Closing;

		
	h.
	Preparing and delivering to each party a signed copy of the Title Company’s closing statement showing all receipts and disbursements of the Escrow prior to Closing; and,

		
	i.
	Confirming that all disclosures and notices have been given as required by any applicable Law or Governmental Agency were given upon or prior to Closing.

6.6.    Prorations.

6.6.1.    Generally.  If all general, special, ordinary or extraordinary real and personal ad valorem taxes and assessments which are Conditions of Title arising out or, concerning or related in any way to the Property, including, without limitation, any licenses, fees, commercial rental tax, improvement bonds, levies, or other taxes (other than inheritance, personal income or estate taxes) levied or assessed against the Property or levied by any Governmental Agency (collectively the “Taxes”), for the year of Closing are not known or cannot be reasonably estimated, and solely to the extent not payable by Tenant under the Lease, such Taxes, if any, shall be prorated based on Taxes for the year prior to Closing.  Seller shall be responsible for all Taxes that are attributable to periods on and before the Closing Date.  Buyer shall be responsible for all Taxes that are attributable to periods after the Closing Date.  All costs, expenses, fees, income, payables, receivables, revenues and utilities, of the Property, including, without limitation, any payments related to the Property from the FARM SERVICE AGENCY, a federal public agency, and the Lease shall be prorated between the parties on the basis of the actual number of days in the month as of 12:01 a.m., Pacific Time, on the Closing, with all such credits prior to Closing attributed to Seller and all such credits attributed to Buyer after the Closing.  If the amount of any proration cannot be determined upon the Closing, the reconciliation and, if applicable, reimbursement shall be made between the parties as soon after the Closing as possible.  Notwithstanding the foregoing, all prorations shall be deemed final six (6) months from the Closing.

6.6.2.    Final Adjustment After Closing.  If final bills are not available or cannot be issued prior to Closing for any item being prorated under Section 6.6.1, then the parties agree to allocate such items on a fair and equitable basis in accordance with Section 6.6.1 as soon as such bills are available, final adjustment to be made as soon as reasonably possible after the Closing; provided, however, such final adjustment shall be made by the date which is sixty (60) days after the Closing.  Payments in connection with the final adjustment shall be due within thirty (30) days of written notice.  This Section 6.6.2 shall survive the Closing and the recordation of the Deed.

6.7.    Closing Costs.  Closing Costs shall be allocated between the parties as set forth in Section 1.7.  All other costs and expenses of Escrow and Closing shall be borne by the parties in accordance with custom and usage in the central San Joaquin Valley, California, and as set forth in the Escrow Instructions.  In the event this Agreement is terminated by either party for failure of a condition set forth in this Agreement, or either party fails to Close the Escrow as provided herein, such terminating or defaulting party shall pay all charges, costs, expenses and fees of the Title Company incurred in connection with this transaction prior to such termination, including, without limitation, Escrow and title cancellation fees; provided, however, that in the event Buyer terminates this Agreement because Seller is unwilling or unable to remove a Title Defect, Seller shall pay all such costs and charges.

6.8.    Pre-Closing Settlement Statement.  At least three (3) business days prior to the Closing, the parties shall provide to Title Company as much information as is then available to enable Title Company to prepare a pre-audit settlement statement setting forth in detail all prorations and adjustments contemplated by this Agreement, including, without limitation, Sections 6.6 and 6.7, based on the information available to Title Company.  Title Company shall provide such pre-audit settlement statement to the parties and their respective legal counsel no later than two (2) business days prior to the Closing and shall include therewith an indication of any specific information remaining to be provided to Title Company by the parties to enable Title Company to show all final prorations and adjustments calculated by the parties, and required by this Agreement.

6.9.    IRS Real Estate Sales Reporting.  The parties hereby appoint Title Company, and Title Company agrees to act, as “the person responsible for closing” the transaction contemplated under this Agreement pursuant to Internal Revenue Code Section 6045(e).  Title Company shall prepare and file all informational returns, including, without limitation, IRS Form 1099-S and shall otherwise comply with the provisions of Internal Revenue Code Section 6045(e).  Title Company shall indemnify, protect, hold harmless and defend Seller, Buyer and their respective attorneys for, from and against any and all claims, actions, costs, loss, liability or expense arising out of or in connection with the failure of Title Company to comply with the provisions of this Section 6.9.

6.10.    Possession.  Right to possession of the Property shall transfer to Buyer on the Closing, subject only to the Conditions of Title and the Lease.  If applicable, Seller shall transfer to Buyer on the Closing Date, to the extent in Seller’s control, custody or possession, the originals of all permits and other documents to be transferred to Buyer under this Agreement which have not yet been delivered to Buyer, provided that Seller may retain copies of all or any of the foregoing documents.  This Section 6.10 shall survive the Closing and the recordation of the Deed.

6.11.    Notice to Tenant.  Immediately after the Closing, the parties understand and agree that Buyer shall cause a “Notice to Tenant” to be sent to Tenant, informing it of the conveyance of title to the Property from Seller to Buyer as of the Closing in substantially the same form attached hereto as Exhibit “H” and incorporated herein by reference as if fully set forth at length.  This Section 6.11 shall survive the Closing and the recordation of the Deed.

ARTICLE VII.  MISCELLANEOUS PROVISIONS

7.1.    Default by Buyer; Liquidated Damages.  IF THE CLOSING DOES NOT OCCUR BY THE CLOSING DATE DUE TO THE DEFAULT OR BREACH BY BUYER UNDER THIS AGREEMENT (AND THUS NOT AS A RESULT OF THE TIMELY DISAPPROVAL BY BUYER OF ANY CONTINGENCY CONTAINED HEREIN, OR DUE TO THE DEFAULT OR BREACH BY SELLER), THE PARTIES AGREE THAT SELLER SHALL BE PAID THE DEPOSIT AND ANY INTEREST ACCRUED THEREON AS LIQUIDATED DAMAGES, WHICH SUM THE PARTIES AGREE IS A REASONABLE SUM CONSIDERING ALL OF THE CIRCUMSTANCES EXISTING ON THE EFFECTIVE DATE OF THIS AGREEMENT, INCLUDING THE RELATIONSHIP OF THE AMOUNT TO THE RANGE OF HARM TO SELLER THAT REASONABLY COULD BE ANTICIPATED, AND THE ANTICIPATION THAT PROVING ACTUAL DAMAGES WOULD BE COSTLY, IMPRACTICABLE AND EXTREMELY DIFFICULT.  THE PARTIES FURTHER AGREE THAT, EXCEPT AS TO BUYER’S OBLIGATION OF INDEMNITY AND DUTY TO DEFEND IN SECTION 5.1(a), SUCH AMOUNT SHALL BE THE SOLE DAMAGES, AND THE SOLE AND EXCLUSIVE REMEDY OF SELLER, LEGAL, EQUITABLE OR OTHERWISE, INCLUDING SPECIFIC PERFORMANCE, DAMAGES AND ALL OTHER LEGAL OR EQUITABLE REMEDIES, AS A RESULT OF THE CLOSING NOT OCCURRING BY THE CLOSING DATE DUE TO BUYER’S DEFAULT OR BREACH UNDER THIS AGREEMENT, AND THAT, IN SUCH EVENT, BUYER SHALL HAVE NO FURTHER RIGHT TO PURCHASE THE PROPERTY OR OTHER RIGHTS UNDER THIS AGREEMENT, THROUGH SPECIFIC PERFORMANCE OR OTHERWISE.  THE PARTIES FURTHER AGREE THAT THIS SECTION 7.1 SHALL SPECIFICALLY CONSTITUTE A WAIVER OF SELLERS RIGHT TO SPECIFIC PERFORMANCE, AS SET FORTH IN CALIFORNIA CIVIL CODE SECTIONS 1680 AND 3389 AND ANY INTERPRETIVE CASE LAW UNDER SUCH SECTIONS, INCLUDING BLEECHER V. CONTE (1981) 29 CAL.3D 345.  THE PARTIES FURTHER AGREE THAT RETENTION OF THE DEPOSIT BY SELLER AS LIQUIDATED DAMAGES IS NOT INTENDED AS A FORFEITURE OR PENALTY WITHIN THE MEANING OF CALIFORNIA CIVIL CODE SECTION 3275 OR 3369, BUT INSTEAD IS INTENDED TO CONSTITUTE LIQUIDATED DAMAGES TO SELLER PURSUANT TO CALIFORNIA CIVIL CODE SECTIONS 1671, 1676 AND 1677.  IN PLACING THEIR INITIALS AT THE PLACES PROVIDED BELOW, EACH PARTY CONFIRMS THE ACCURACY OF THE STATEMENTS MADE ABOVE AND THE FACT THAT EACH PARTY WAS EITHER REPRESENTED BY COUNSEL WHO EXPLAINED THE CONSEQUENCES OF THIS LIQUIDATED DAMAGES PROVISION AT THE TIME THIS AGREEMENT WAS MADE, OR WAS ADVISED TO SEEK INDEPENDENT LEGAL ADVICE REGARDING THE CONSEQUENCES OF THIS LIQUIDATED DAMAGES PROVISION.

IF THE CLOSING DOES NOT OCCUR BY THE CLOSING DATE DUE SOLELY TO SUCH A DEFAULT OR BREACH BY BUYER UNDER THIS AGREEMENT (AND THUS NOT AS A RESULT OF THE TIMELY DISAPPROVAL BY BUYER OF ANY CONTINGENCY CONTAINED HEREIN, OR DUE TO THE DEFAULT OR BREACH BY SELLER), THEN SELLER MAY COLLECT SUCH LIQUIDATED DAMAGES FROM BUYER BY MAKING WRITTEN DEMAND ON BUYER AND THE TITLE COMPANY, IF THE DEPOSIT IS BEING HELD BY THE TITLE COMPANY.

UNDER NO CIRCUMSTANCES SHALL ANY INDIVIDUAL MEMBER, DIRECTOR, MANAGER, OFFICER OR EMPLOYEE OF BUYER HAVE ANY LIABILITY ARISING FROM OR IN CONNECTION WITH THIS AGREEMENT.

/s/ AH                /s/ LP    
Seller’s Initials            Buyer’s Initials

7.2.    Default by Seller.  In the event the Closing and the consummation of a transaction contemplated by this Agreement does not occur as a result of any default by Seller, Buyer’s sole remedies shall be to either: (i) terminate this Agreement and receive a refund of the Deposit together with reimbursement of actual third party out of pocket costs incurred by Buyer in connection with its “due diligence” investigation of the Property in an aggregate sum not to exceed Ten Thousand Dollars and No Cents ($10,000.00); or, (ii) file an action against Seller for specific performance of this Agreement.  Buyer’s failure to file an action for specific performance within ninety (90) days of any claimed breach by Seller shall be deemed to be a waiver of that remedy.  In no event shall Buyer be entitled to or seek any form of monetary damages from Seller, including but not limited to punitive, compensatory, general, special and/or incidental damages, except as set forth in this Section 7.2.  Under no circumstances shall Seller’s agents, conservators, directors, employees, guardians, managers, members, officers, representatives stockholders or trustees, as applicable, have any liability to Buyer for any claims made by Buyer arising out of or connected to this Agreement.

7.3.    Limitation of Liability.  EXCEPT AS OTHERWISE SPECIFICALLY PROVIDED IN THIS AGREEMENT, NEITHER PARTY’S GENERAL PARTNERS, LIMITED PARTNERS, MEMBERS, MANAGERS, AGENTS, INDEPENDENT CONTRACTORS, CONSULTANTS (INCLUDING, WITHOUT LIMITATION, ACCOUNTANTS AND ATTORNEYS), EMPLOYEES AND/OR REPRESENTATIVES, OR ANY AFFILIATE OR CONTROLLING PERSON THEREOF, HAVE ANY LIABILITY FOR ANY CLAIM, CAUSE OF ACTION OR OTHER LIABILITY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE PROPERTY WHETHER BASED ON CONTRACT, COMMON LAW, STATUTE, EQUITY OR OTHERWISE.  THE FOREGOING LIMITATION ON LIABILITY SHALL SURVIVE THE CLOSING AND THE RECORDATION OF THE DEED, OR ANY EARLIER TERMINATION OF THIS AGREEMENT AND SHALL NOT DIMINISH OR OTHERWISE AFFECT THE PARTY’S WAIVERS AND RELEASES IN ANY OTHER CONDITION, PROVISION OR TERM OF THIS AGREEMENT.

/s/ AH                /s/ LP    
Seller’s Initials            Buyer’s Initials

7.4.    Remedies Exclusive; Exercise of Remedies.  The remedies specified herein for the enforcement of this Agreement are exclusive; provided, however, nothing contained herein is intended to abrogate, modify or affect either party’s right to be indemnified, held harmless and defended as expressly set forth in this Agreement, it being understood that such obligations of the parties shall survive termination of this Agreement and, if applicable, the Closing and the recordation of the Deed.  The exercise of any right or remedy by either party pursuant to this Agreement shall not in any way constitute a cure or waiver of any default hereunder, invalidate any act done pursuant to any notice of default, or prejudice either party in the exercise of any of their respective rights pursuant to this Agreement.

7.5.    Attorneys’ Fees and Disbursements.  In the event of any arbitration, litigation or other dispute between the parties in connection with the interpretation, performance or enforcement of this Agreement, the prevailing party in such arbitration, litigation or other dispute shall be entitled, in addition to equitable relief or damages or both or other relief, to be reimbursed by the nonprevailing party for all reasonable costs and expenses of the arbitration, litigation, or other dispute including, without limitation, arbitration costs, arbitrator’s fees court costs, expert witness fees, investigation costs and such reasonable attorneys’ fees and disbursements, incurred therein by such prevailing party or parties and, if such prevailing party or parties shall recover judgment in any such action or proceedings, such costs, expenses and attorneys’ fees may be included in and as a part of such judgment.  The prevailing party or parties shall be the party who is entitled to recover his costs of suit, whether or not the suit proceeds to final judgment.  If no costs of suit are awarded, the arbitrator(s) or court, as applicable, shall determine the prevailing party.  Notwithstanding the foregoing, in the event the parties agree to mediate a dispute, each party shall pay its own costs and expenses, including attorney’s fees and disbursements, of mediation.

7.6.    Notices.  All notices, demands, or other communications that either party desires or is required or permitted to give or make to the other party under or pursuant to this Agreement (collectively referred to as “notices”) shall be made or given in writing and shall either be: (i) personally served; (ii) sent by registered or certified mail, postage prepaid, return receipt requested; (iii) sent by facsimile (“fax”) or electronic mail (“email”); or, (iv) sent by a nationally recognized commercial delivery service or courier (such as Federal Express).  All notices shall be addressed or faxed to or sent via e-mail to or personally served on the parties as set forth in Section 1.8.  Counsel for a party may give notice on behalf of that party.  Notices given by a party pursuant to the alternative methods described in this Section 7.6 shall be deemed to have been delivered to and received by the other party at the following times: (a) for notices personally served, on the date of hand delivery to the other party or its duly authorized employee, representative, or agent; (b) for notices given by registered or certified mail, on the date shown on the return receipt as having been delivered to and received by the other party or parties; (c) for notices given by fax or email, on the date the notice is faxed or sent by e-mail to the other party or parties; provided, however, that notices given by fax or e-mail, shall not be effective unless either: (i) a duplicate copy of such faxed notice is promptly given by first-class mail, postage prepaid, or commercial courier, and addressed as provided above, or (ii), in the case of a fax, the sending party’s facsimile equipment is capable of providing a written confirmation of the receiving party’s receipt of such notice; provided further, however, any notice given by fax or e-mail shall be deemed received on the next business day if such notice is received after 5:00 p.m. (recipient’s time) or on a nonbusiness day; or, (d) for notices delivered by commercial courier, on the day on which same has been delivered by the courier as evidenced by the receipt provided by such courier to the party giving notice.  Each party shall make an ordinary, good faith effort to ensure that it will accept or receive notices that are given in accordance with this Section 7.6, and that any person to be given notice actually receives such notice.  A party may change or supplement its designated agent, address, or fax number given above, or designate additional agents, addresses or fax numbers for notice purposes, by giving notice to the other party in the manner set forth in this Section 7.6, provided that any such address change shall not be effective until five (5) days after the notice is delivered or received by the other party.

7.7.    Survival of Covenants.  Subject to Sections 5.1 and 5.2, each of the covenants contained in this Agreement shall, to the extent applicable, survive the performance of the executory provisions of this Agreement, the Closing, and the recordation of the Deed, which will not effectuate a merger of interests unless otherwise expressly noted.

7.8.    Further Assurances.  The parties shall in good faith cooperate with each other in satisfying all conditions contained in this Agreement, including, without limitation, executing any and all documents required to be executed by Seller as record owner of the Property to accomplish any verifications, approvals or determinations. Seller specifically shall cooperate in good faith with Buyer in satisfying all conditions contained in Article IV, including, without limitation, the execution of any and all documents required to be executed by Seller as record owner of the Property to accomplish any verifications, approvals or determinations.  Each party shall execute and deliver any and all additional papers, documents or other assurances and shall perform any further acts that may be reasonably necessary to carry out the intent of the parties and the provisions of this Agreement.

7.9.    Binding Effect.  Subject to Section 7.10, this Agreement shall inure to and for the benefit of and be binding upon each party’s respective parent, subsidiary or affiliated organizations, administrators, agents, attorneys, beneficiaries, conservators, custodians, directors, employees, executors, guardians, heirs, independent contractors, joint venturers, members, officers, partners, predecessors, representatives, servants, stockholders, successors, trustees and all others acting for, under, or in concert with it, including associations, corporations, limited liability companies, and general or limited partnerships, present and future.

7.10.    Assignability.  Notwithstanding Section 7.9, except for an Internal Revenue Code Section 1031 exchange, any assignment by either party of its rights and duties, obligations and responsibilities under this Agreement shall be subject to the other party’s prior written consent, exercisable in it’s sole and absolute discretion, provided that no such assignment shall relieve the assigning party of its duties, obligations and responsibilities under this Agreement.  

7.11.    No Third Party Beneficiary.  This Agreement is made for the sole benefit of the parties and their respective successors and permitted assigns and no other person or persons shall have any right of action hereon.

7.12.    No Partnership or Joint Venture Created.  The parties’ relationship is that of seller and buyer and this Agreement is not intended to nor does create a partnership or joint venture or relationship between the parties.

7.13.    Entire Agreement.  This Agreement, including the attached exhibits (all of which are incorporated by this reference), supersedes any and all other agreements, either oral or in writing, between the parties with respect to the subject matter hereof and contains all of the covenants and agreements between the parties with respect to such matter, and each party to this Agreement acknowledges that no representations, inducements, promises or agreements, oral or otherwise, have been made by any party, or anyone acting on behalf of any party, that are not embodied herein, and that no other agreement, statement or promise not contained in this Agreement, including the attached exhibits, shall be valid or binding.  The exhibits are an integral part of this Agreement.

7.14.    Modification.  This Agreement may be modified only by a written document signed by the parties.

7.15.    Partial Invalidity.  If any condition, covenant, provision or term of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the provisions hereof shall remain in full force and effect and shall in no way be affected, impaired or invalidated, and each remaining condition, covenant, provision or term of this Agreement shall be valid and shall be enforced to the fullest extent permitted by Law it being the intent of the parties each to receive the material benefit of their bargain.

7.16.    Waiver.  Notwithstanding any agreement between the parties, the waiver by any party of a breach of any provision of this Agreement shall not be deemed a continuing waiver or waiver of any subsequent breach whether of the same or another provision thereof.

7.17.    Governing Law; Venue.  This Agreement shall be construed and enforced in accordance with the internal Laws, and not the Law of conflicts, of the State of California, where it is to be executed, delivered and performed.  This Agreement is entered into and is to be performed in Kern County, California, and accordingly the only appropriate venue for a dispute under this Agreement is in the Kern County Superior Court, Metropolitan District.  The parties hereby expressly consent to the jurisdiction by the Kern County Superior Court, Metropolitan District.

7.18.    Tax-Deferred Exchange.  The parties acknowledge that either party may wish to structure all or a portion of this transaction as a tax deferred exchange of like-kind property within the meaning of Section 1031 of the Internal Revenue Code.  Each party agrees to reasonably cooperate with the other party to effect such an exchange; provided, however, that: (i) the cooperating party shall not be required to acquire or take title to any exchange property; (ii) the cooperating party shall not be required to incur any expense (excluding its own attorneys’ fees incurred in reviewing any drafts of Exchange Documents, as defined below) or liability whatsoever in connection with the exchange, including, without limitation, any obligation for the payment of any escrow, title, brokerage or other costs incurred with respect to the exchange; (iii) no substitution of the effectuating party shall release said party from any of its obligations, warranties or representations set forth in this Agreement or from liability for any prior or subsequent default under this Agreement by the effectuating party, its successors, or assigns, which obligations shall continue as the obligations of a principal and not of a surety or guarantor; (iv) the effectuating party shall give the cooperating party at least five (5) business days prior notice of the proposed changes required to effect such exchange and the identity of any party to be substituted in the Escrow; (v) the effectuating party shall be responsible for preparing all additional agreements, documents and escrow instructions (collectively, the “Exchange Documents”) required by the exchange, at its sole cost and expense; (vi) the effectuating party shall be responsible for making all determinations as to the legal sufficiency, tax considerations and other considerations relating to the proposed exchange, the Exchange Documents and the transactions contemplated thereby, and the cooperating party shall in no event be responsible for, or in any way be deemed to warrant or represent any tax or other consequences of the exchange transaction arising by reason of the cooperating party’s performance of the acts required hereby; and, (vii) except as provide in Section 1.6, the Closing shall not be delayed as a result of a party’s election to structure the transaction as a tax deferred exchange in accordance with this Section 7.18.

7.19.    No Recordation of Memorandum of Agreement.  The parties agree that no memorandum of this Agreement shall be recorded against the Property in either the Merced County Official Records.  Upon the termination of this Agreement without consummating the transaction contemplated thereunder, Buyer agrees to execute and acknowledge and then record quitclaim deeds in favor of Seller in the Merced County Official Records.

7.20.    Time of the Essence.  Time is of the essence under this Agreement.

7.21.    Separate Counterparts; Facsimile & Electronic Signatures.  This Agreement shall be executed in two (2) separate counterparts, each of which, when so executed, shall be deemed to be an original and to constitute the one and same contract.  This Agreement may be signed and signatures transmitted by facsimile, and any such facsimile copy shall be equivalent to a binding signed original for all purposes, and the party transmitting facsimile signatures shall transmit original “hard copies” of the signature pages as provided in Section 7.6 within twenty-four (24) hours after transmission of such facsimile copy.  This Agreement may also be executed electronically, whether using an electronic signature and delivery service such as DocuSign or eSignLive, or by use of electronically copied/saved and transmitted executed documents, such as by emailing a PDF of the signed document.  The Parties expressly agree that the actual execution and delivery of this Agreement by electronic means shall specifically be governed by the Electronic Signatures in Global and National Commerce Act (ESIGN), 15 U.S.C § 7001, and the governing law applicable to the remainder of the agreement shall be as otherwise stated herein.

7.22.    Warranties of the Parties.  Each party understands, acknowledges, agrees, represents and warrants to the other party that it has received independent legal advice from its attorneys with respect to the advisability of entering into this Agreement or has intentionally elected not to seek the advice of counsel and has carefully reviewed and considered the terms and conditions of this Agreement, that it is empowered to execute this Agreement, and that its execution of this Agreement is free and voluntary.

7.23.    Authority of the Parties.  Where required in this Agreement or by the Title Company, the parties shall deliver documentation that authorizes the transaction contemplated herein and also evidences the authority of the individuals or officers who are empowered to execute and carry out the terms of this Agreement.

7.24.    Broker’s Commissions.  Each party represents and warrants to the other parties that there is no broker, finder or intermediary with whom they have dealt in connection with the transaction contemplated under this Agreement.  In the event of any such claims for brokers’ or finders’ fees or commissions in connection with the negotiation, execution or consummation of this Agreement, the party through whom said broker, salesman or other person makes its claim shall indemnify and hold harmless the other party from said claim and all liabilities, costs and expenses related thereto, including reasonable attorney’s fees, that may be incurred by such other party in connection with such claim.  The foregoing indemnity shall survive the Closing and the recordation of the Deed.

7.25.    Confidentiality.  Buyer entered into a non-disclosure agreement with Seller effective as of March 11, 2016 (“NDA”).  The NDA is hereby incorporated by reference.  Prior to Closing, the parties shall hold as confidential and shall not disclose to any third party either the conditions, covenants, provisions or terms of this Agreement, the transaction contemplated under this Agreement, activities and information acquired during the Due Diligence Period related to Seller, Tenant or the Property  and Buyer shall not disclose to any third party any information received, obtained or discovered relating in any manner to the Property, Seller and Tenant, unless such disclosure is made to either party’s financial, legal or tax advisors, partners, members, and investors on a confidential basis, is required by applicable Law or the other party consents in writing to the disclosure, without first obtaining the written consent of the other party.

7.26    Rule 3-14 Audit.  Seller agrees to reasonably cooperate, at no cost or expense to Seller, with Buyer in connection with any SEC Regulation SX Rule 3-14 audit that Buyer may conduct with respect to the Property within one (1) year after the Closing Date.

[SIGNATURES BEGIN ON THE NEXT PAGE; REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK] 

7.26.    Effectiveness.  This Agreement shall become effective as of the Effective Date upon its execution and delivery by all of the parties.

		
	DATED:  September 13, 2016
	SAN JOAQUIN FARMS, LLC, a Washington limited liability company authorized to do business in the State of California as WASHINGTON SAN JOAQUIN FARMS, LLC (“Seller”)

By:        /s/ Alan Heuberger            
[Print]        Alan Heuberger                
Its:        Authorized Signatory            

		
	DATED:  September 13, 2016
	NEVADA RANCH MERCED, LP, a Delaware limited partnership (“Buyer”)

		
	By:
	GLADSTONE CALIFORNIA FARMLAND GP, LLC, a Delaware limited liability company

		
	Its:
	General Partner

		
	By:
	GLADSTONE LAND LIMITED PARTNERSHIP, a Delaware limited partnership

Its:    Sole Member

By: GLADSTONE LAND PARTNERS, LLC, a Delaware limited liability company
		
	Its:
	General Partner

		
	By:
	GLADSTONE LAND CORPORATION, a Maryland corporation

		
	Its:
	Manager

By:        /s/ Lewis Parrish    
[Print]:        Lewis Parrish        
Its:        CFO            

[SIGNATURES CONTINUED ON THE NEXT PAGE; REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK] 

ACCEPTANCE BY TITLE COMPANY:

Title Company hereby acknowledges that it has received a fully executed counterpart of this Agreement and agrees to act as Title Company thereunder and to be bound by and perform the terms thereof as such terms apply to Title Company.

		
	DATED:  September 13, 2016
	CHICAGO TITLE INSURANCE COMPANY, a Nebraska corporation (“Title Company”)

By:        /s/ Melodie Rochelle            
MELODIE T. ROCHELLE
Title:    Vice President, Sr. Commercial Title Officer

118/70980-3/TRANSACTION DOCUMENTS/AGREEMENRT FOR PURCHASE AND SALE – NEVADA (CLADSTONE)  (C&B 090616) 

EXHIBITS

	
		
	EXHIBIT
	NAME OF EXHIBIT

	“A”
	LEGAL DESCRIPTION OF THE LAND

	“B”
	THE EXCLUDED IMPROVEMENTS

	“C”
	THE FORM OF THE ASSIGNMENT

	“D”
	THE FORM OF THE DEED

	“E”
	THE FORM OF LEASE ASSIGNMENT

	“F”
	THE FORM OF THE TENANT ESTOPPEL CERTIFICATE

	“G”
	THE FORM OF THE FEDERAL FIRPTA CERTIFICATE

	“H”
	THE FORM OF THE NOTICE TO TENANT

EXHIBIT “A”

Legal Description of the Land

THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN AN UNINCORPORATED AREA, COUNTY OF MERCED, STATE OF CALIFORNIA AND IS DESCRIBED AS FOLLOWS:

PARCEL A:

Parcel 1, as shown on that certain parcel map for First Harvest, filed for record on December 16, 1976 in Volume 31 of Parcel Maps, Page 42, Merced County Records, and being portions of Section 35 and  Section 36, Township 8 South, Range 16 East, M.D.B.&M.

Merced County Assessor’s Parcel No. 068-130-029

PARCEL B:

ADJUSTED PARCEL 2 of Property Line Adjustment No. 02034 for Albert Gedrimas described in Certificate of Compliance recorded February 21, 2003 as Instrument No. 2003-010215 described as follows:

All that certain real property situate in a portion of Section 36, Township 8 South, Range 16 East, Mount Diablo Base and Meridian, in the County of Merced, State of California, also being a portion of Parcel 2 and all of Parcel 3 as shown on that certain Parcel Map for "FIRST HARVEST" filed for record in Volume 31 of Parcel Maps at page 42, Merced County Records, described as follows:

Excepting the following described portion of said Parcel 2:

Commencing at the northwest corner of said Parcel 2, said northwest corner being a point on the south line of a 60.00 foot wide County Road now known as "BUCHANAN HOLLOW ROAD"; thence N.89°01'09"E. along the north line of said Parcel 2 and the south line of said road a distance of 612.96 feet, more or less to the point of intersection with the centerline of an existing creek and the TRUE POINT OF BEGINNING of this description; thence along the centerline of said creek the following eleven (11) courses:

		
	1.
	S.27°45'41"E. 332.56 feet, more or less

		
	2.
	S.38°36'15"E. 255.04 feet, more or less

		
	3.
	S.03°52'22"E. 101.54 feet, more or less

		
	4.
	S.61°56'12"E. 90.67 feet, more or less

		
	5.
	N.49°13'11"E. 124.78 feet, more or less

		
	6.
	N.71°13'29"E. 263.05 feet, more or less

		
	7.
	N.12°13'24"E. 111.58 feet, more or less

		
	8.
	N.59°58'59"W. 113.05 feet, more or less

		
	9.
	N.23°50'49"W. 134.24 feet, more or less

		
	10.
	N.41°01'12"E. 87.04 feet, more or less

		
	11.
	S.82°34'17"E. 210.29 feet, more or less

to a point on the most westerly, east line, of said Parcel 2; thence N.00°31'14"W. along said line a distance of 159.59 feet to a point on said south line of Buchanan Hollow Road; thence S.89°01'09"W. along said south line a distance of 880.24 feet to the point of beginning.

Merced County Assessor’s Parcel No. 068-130-044 and 068-130-031

PARCEL C:

Parcel 4, as shown on that certain parcel map for First Harvest, filed for record on December 16, 1976 in Volume 31 of Parcel Maps, Page 42, Merced County Records, and being portions of Section 35 and Section 36, Township 8 South, Range 16 East, M.D.B.&M.

Merced County Assessor’s Parcel No. 068-130-032

PARCEL D:

Parcel 5, as shown on that certain parcel map for First Harvest, filed for record on December 16, 1976 in Volume 31 of Parcel Maps, Page 42, Merced County Records, and being portions of Section 35 and Section 36, Township 8 South, Range 16 East, M.D.B.&M.

Merced County Assessor’s Parcel No. 068-130-033.

PARCEL E:

Parcel 6, as shown on that certain parcel map for First Harvest, filed for record on December 16, 1976 in Volume 31 of Parcel Maps, Page 42, Merced County Records, and being portions of Section 35 and Section 36, Township 8 South, Range 16 East, M.D.B.&M.

Merced County Assessor’s Parcel No. 068-130-034.

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK] 

PARCEL F:

The Northwest quarter of Section 35, Township 8 South, Range 16 East, M.D.B.&M., in the County of Merced, State of California, according to the Official Plat thereof.

Excepting and reserving unto Hazel Ellen Mathews an undivided one-half interest in all minerals, oil, gas and other hydrocarbons therein and thereunder by deed recorded December 29, 1976 as Instrument No. 28439 in Volume 2057 of Official Records, Page 1, Merced County Records.

Merced County Assessor’s Parcel No. 068-130-028

Merced County Assessor’s Parcel Nos. 068-130-028, -029, -031, -032, -033, -034 and -044

EXHIBIT “B”

The Excluded Improvements

EXHIBIT “C”

The Form of the Assignment

EXHIBIT “D”

The Form of the Deed

EXHIBIT “E”

The Form of the Lease Assignment

EXHIBIT “F”

The Form of the Tenant Estoppel Certificate

EXHIBIT “G”

The Form of the Federal FIRPTA Certificate

EXHIBIT “H”

The Form of the Notice to Tenant

19974265.5

[CLIFFORD & BROWN,  A PROFESSIONAL CORPORATION – 090616 VERSION]Sphere 3D Corp. - Exhibit 4.1 - Filed by newsfilecorp.com

EXHIBIT 4 

2015 PERFORMANCE INCENTIVE PLAN 
(As Amended Effective
September 13, 2016) 
**************** 

SPHERE 3D CORP. 

2015 PERFORMANCE INCENTIVE PLAN 

	1. 	
      PURPOSE OF PLAN

	 	 
		
      The purpose of this Sphere 3D Corp. 2015 Performance
      Incentive Plan (this “Plan”) of Sphere 3D Corp., a corporation
      incorporated under the laws of the Province of Ontario (the
      “Corporation”), is to promote the success of the Corporation and to
      increase shareholder value by providing an additional means through the
      grant of awards to attract, motivate, retain and reward selected employees
      and other eligible persons.

	 	 
	2. 	
      ELIGIBILITY

	 	 
		
      The Administrator (as such term is defined in Section
      3.1) may grant awards under this Plan only to those persons that the
      Administrator determines to be Eligible Persons. An “Eligible
      Person” is any person who is either: (a) an officer (whether or not a
      director) or employee of the Corporation or one of its Subsidiaries; (b) a
      director of the Corporation or one of its Subsidiaries; or (c) an
      individual consultant or advisor who renders or has rendered bona fide
      services (other than services in connection with the offering or sale of
      securities of the Corporation or one of its Subsidiaries in a
      capital-raising transaction or as a market maker or promoter of securities
      of the Corporation or one of its Subsidiaries) to the Corporation or one
      of its Subsidiaries and who is selected to participate in this Plan by the
      Administrator; provided, however, that a person who is otherwise an
      Eligible Person under clause (c) above may participate in this Plan only
      if such participation would not adversely affect either the Corporation’s
      eligibility to use Form S-8 to register under the Securities Act of 1933,
      as amended (the “Securities Act”), the offering and sale of shares
      issuable under this Plan by the Corporation, the Corporation’s ability to
      rely on all necessary prospectus and other exemptions under Canadian
      securities legislation in a manner satisfactory to the Corporation, in its
      sole discretion, or the Corporation’s compliance with any other applicable
      laws. An Eligible Person who has been granted an award (a “participant”)
      may, if otherwise eligible, be granted additional awards if the
      Administrator shall so determine. As used herein, subject to any
      applicable laws that may require a different interpretation,
      “Subsidiary” means any corporation or other entity a majority of
      whose outstanding voting stock or voting power is beneficially owned
      directly or indirectly by the Corporation; and “Board” means the
      Board of Directors of the Corporation.

	 	 
	3. 	
      PLAN ADMINISTRATION

	 	3.1 	
      The Administrator. This Plan shall be
      administered by and all awards under this Plan shall be authorized by the
      Administrator. The “Administrator” means the Board or one or more
      committees appointed by the Board or another committee (within its
      delegated authority and in the manner and on the terms authorized by the
      Board) to administer all or certain aspects of this Plan. Any such
      committee shall be comprised solely of one or more directors or such
      number of directors as may be required under applicable law. A committee
      may delegate some or all of its authority to another committee so
      constituted, to the extent permitted by applicable laws.
  The Board or a committee comprised solely of directors may
      also delegate, to the extent permitted by applicable law, to one or more
      officers of the Corporation, its powers under this Plan (a) to designate
      the officers and employees of the Corporation and its Subsidiaries who
      will receive grants of awards under this Plan, and (b) to determine the
      number of shares subject to, and the other terms and conditions of, such
      awards. The Board may delegate different levels of authority to different
      committees with administrative and grant authority under this Plan. Unless
      otherwise provided in the Bylaws of the Corporation or the applicable
      charter of any Administrator: (a) a majority of the members of the acting
      Administrator shall constitute a quorum, and (b) the vote of a majority of
      the members present assuming the presence of a quorum or the unanimous
      written consent of the members of the Administrator shall constitute
      action by the acting Administrator. With respect to awards intended to
      satisfy the requirements for performance-based compensation under Section
      162(m) of the Internal Revenue Code of 1986, as amended (the
      “Code”), this Plan shall be administered by a committee consisting
      solely of two or more outside directors (as this requirement is applied
      under Section 162(m) of the Code); provided, however, that the failure to
      satisfy such requirement shall not affect the validity of the action of
      any committee otherwise duly authorized and acting in the matter. Award
      grants, and transactions in or involving awards, intended to be exempt
      under Rule 16b-3 under the Securities Exchange Act of 1934, as amended
      (the “Exchange Act”), must be duly and timely authorized by the
      Board or a committee consisting solely of two or more non-employee
      directors (as this requirement is applied under Rule 16b-3 promulgated
      under the Exchange Act). To the extent required by any applicable listing
      agency, this Plan shall be administered by a committee composed entirely
      of independent directors (within the meaning of the applicable listing
      agency).

	 	3.2 	
      Powers of the Administrator. Subject to the
      express provisions of this Plan and applicable laws, the Administrator is
      authorized and empowered to do all things necessary or desirable in
      connection with the authorization of awards and the administration of this
      Plan (in the case of a committee or delegation to one or more officers,
      within the authority delegated to that committee or person(s) and in the
      manner and on the terms authorized by the Board), including, without
      limitation, the authority to:

	 	(a) 	
      determine eligibility and, from among those persons
      determined to be eligible, the particular Eligible Persons who will
      receive an award under this Plan;

	 	 	 
	 	(b) 	
      grant awards to Eligible Persons, determine the price at
      which securities will be offered or awarded and the number of securities
      to be offered or awarded to any of such persons, determine the other
      specific terms and conditions of such awards consistent with the express
      limits of this Plan, establish the installments (if any) in which such
      awards shall become exercisable or shall vest (which may include, without
      limitation, performance and/or time-based schedules), or determine that no
      delayed exercisability or vesting is required, establish any applicable
      performance targets, determine the extent (if any) to which any applicable
      exercise and vesting requirements have been satisfied, and establish the
      events of termination or reversion of such awards;

	 	 	 
	 	(c) 	
      approve the forms of award agreements (which need not be
      identical either as to type of award or among
  participants);

2 

	 	(d) 	
      construe and interpret this Plan and any agreements
      defining the rights and obligations of the Corporation, its Subsidiaries,
      and participants under this Plan, make any and all determinations
      necessary under this Plan and any such agreements, further define the
      terms used in this Plan, and prescribe, amend and rescind rules and
      regulations relating to the administration of this Plan or the awards
      granted under this Plan;

	 	 	 
	 	(e) 	
      cancel, modify, or waive the Corporation’s rights with
      respect to, or modify, discontinue, suspend, or terminate any or all
      outstanding awards, subject to any required consent under Section
      8.6.5;

	 	 	 
	 	(f) 	
      accelerate or extend the vesting or exercisability or
      extend the term of any or all such outstanding awards (in the case of
      options or stock appreciation rights, within the maximum ten-year term of
      such awards) in such circumstances as the Administrator may deem
      appropriate (including, without limitation, in connection with a
      termination of employment or services or other events of a personal
      nature) subject to any required consent under Section 8.6.5;

	 	 	 
	 	(g) 	
      adjust the number of Common Shares subject to any award,
      adjust the price of any or all outstanding awards or otherwise change
      previously imposed terms and conditions, in such circumstances as the
      Administrator may deem appropriate, in each case subject to Sections 4 and
      8.6 (and subject to the no repricing provision below);

	 	 	 
	 	(h) 	
      determine the date of grant of an award, which may be a
      designated date after but not before the date of the Administrator’s
      action (unless otherwise designated by the Administrator, the date of
      grant of an award shall be the date upon which the Administrator took the
      action granting an award);

	 	 	 
	 	(i) 	
      determine whether, and the extent to which, adjustments
      are required pursuant to Section 7 hereof and authorize the termination,
      conversion, substitution or succession of awards upon the occurrence of an
      event of the type described in Section 7;

	 	 	 
	 	(j) 	
      acquire or settle (subject to Sections 7 and 8.6) rights
      under awards in cash, stock of equivalent value, or other consideration
      (subject to the no repricing provision below); and

	 	 	 
	 	(k) 	
      determine the fair market value of the Common Shares or
      awards under this Plan from time to time and/or the manner in which such
      value will be determined.

	 		
      Notwithstanding the foregoing and except for an
      adjustment pursuant to Section 7.1 or a repricing approved by
      shareholders, in no case may the Administrator (1) amend an outstanding
      stock option or SAR to reduce the exercise price or base price of the
      award, (2) cancel, exchange, or surrender an outstanding stock option or
      SAR in exchange for cash or other awards for the purpose of repricing the
      award, or (3) cancel, exchange, or surrender an outstanding stock option
      or SAR in exchange for an option or SAR with an exercise or base price
      that is less than the exercise or base price of the original
  award.

	 	 	 
	 	3.3 	
      Binding Determinations. Any determination
      or other action taken by, or inaction of, the Corporation, any Subsidiary,
      or the Administrator relating or pursuant to this Plan (or any award made
      under this Plan) and within its authority hereunder or under applicable
      law shall be within the absolute discretion of that entity or body and shall
      be conclusive and binding upon all persons. Neither the Board nor any
      Board committee, nor any member thereof or person acting at the direction
      thereof, shall be liable for any act, omission, interpretation,
      construction or determination made in good faith in connection with this
      Plan (or any award made under this Plan), and all such persons shall be
      entitled to indemnification and reimbursement by the Corporation in
      respect of any claim, loss, damage or expense (including, without
      limitation, attorneys’ fees) arising or resulting therefrom to the fullest
      extent permitted by law and/or under any directors and officers liability
      insurance coverage that may be in effect from time to time.

3 

	 	3.4 	
      Reliance on Experts. In making any
      determination or in taking or not taking any action under this Plan, the
      Administrator may obtain and may rely upon the advice of experts,
      including employees and professional advisors to the Corporation. To the
      fullest extent permitted by law, no director, officer or agent of the
      Corporation or any of its Subsidiaries shall be liable for any such action
      or determination taken or made or omitted in good faith.

	 	 	 
	 	3.5 	
      Delegation. The Administrator may delegate
      ministerial, non-discretionary functions to individuals who are officers
      or employees of the Corporation or any of its Subsidiaries or to third
      parties.

	4. 	
      COMMON SHARES SUBJECT TO THE PLAN; SHARE
    LIMITS

	 	4.1 	
      Shares Available. Subject to the provisions
      of Section 7.1, the shares that may be delivered under this Plan shall be
      the Corporation’s authorized but unissued Common Shares. For purposes of
      this Plan, “Common Shares” shall mean the common shares of the
      Corporation and such other securities or property as may become the
      subject of awards under this Plan, or may become subject to such awards,
      pursuant to an adjustment made under Section 7.1.

	 	 	 
	 	4.2 	
      Share Limits. The maximum number of Common
      Shares that may be delivered pursuant to awards granted to Eligible
      Persons under this Plan (the “Share Limit”) is equal to the sum of
      the following:

	 	(1) 	
      10,090,315 Common Shares, plus

	 	 	 
	 	(2) 	
      the number of any Common Shares subject to stock options
      granted under the Corporation’s Second Amended and Restated Stock Option
      Plan (the “Prior Plan”) and outstanding on the date of shareholder
      approval of this Plan (the “Shareholder Approval Date”) which
      expire, or for any reason are cancelled or terminated, after the
      Shareholder Approval Date without being exercised.

provided that in no event shall the
Share Limit exceed 13,165,482 shares (which is the sum of the 10,090,315 shares
set forth in clause (1) above, plus the aggregate number of shares subject to
options previously granted and outstanding under the Prior Plan as of the
Effective Date (as such term is defined in Section 8.6.1), which was 3,075,167
shares). 

4 

The following limits also apply with
respect to awards granted under this Plan: 

	 	(a) 	
      The maximum number of Common Shares that may be delivered
      pursuant to options qualified as incentive stock options granted under
      this Plan is 7,793,233 shares.

	 	 	 
	 	(b) 	
      The maximum number of Common Shares subject to those
      options and stock appreciation rights that are granted during any fiscal
      year of the Corporation to any individual under this Plan is 2,000,000
      shares.

	 	 	 
	 	(c) 	
      Additional limits with respect to Performance-Based
      Awards are set forth in Section 5.2.3.

	 		
      Each of the foregoing numerical limits is subject to
      adjustment as contemplated by Section 4.3, Section 7.1, and Section
      8.10.

	 	 	 
	 	4.3 	
      Awards Settled in Cash, Reissue of Awards and
      Shares. Except as provided in the next sentence, shares that are
      subject to or underlie awards granted under this Plan which expire or for
      any reason are cancelled or terminated, are forfeited, fail to vest, or
      for any other reason are not paid or delivered under this Plan shall again
      be available for subsequent awards under this Plan. Shares that are
      exchanged by a participant or withheld by the Corporation as full or
      partial payment in connection with any award granted under this Plan, as
      well as any shares exchanged by a participant or withheld by the
      Corporation or one of its Subsidiaries to satisfy the tax withholding
      obligations related to any award granted under this Plan, shall be
      available for subsequent awards under this Plan. To the extent that an
      award granted under this Plan is settled in cash or a form other than
      Common Shares, the shares that would have been delivered had there been no
      such cash or other settlement shall not be counted against the shares
      available for issuance under this Plan. In the event that Common Shares
      are delivered in respect of a dividend equivalent right granted under this
      Plan, the number of shares actually delivered with respect to the award
      shall be counted against the share limits of this Plan. To the extent that
      Common Shares are delivered pursuant to the exercise of a stock
      appreciation right or stock option granted under this Plan, the number of
      shares actually delivered with respect to the award shall be counted
      against the share limits of this Plan. Refer to Section 8.10 for
      application of the foregoing share limits with respect to assumed awards.
      The foregoing adjustments to the share limits of this Plan are subject to
      any applicable limitations under Section 162(m) of the Code with respect
      to awards intended as performance- based compensation
thereunder.

	 	 	 
	 	4.4 	
      Reservation of Shares; No Fractional Shares;
      Minimum Issue. The Corporation shall at all times reserve a number
      of Common Shares sufficient to cover the Corporation’s obligations and
      contingent obligations to deliver shares with respect to awards then
      outstanding under this Plan (exclusive of any dividend equivalent
      obligations to the extent the Corporation has the right to settle such
      rights in cash). No fractional shares shall be delivered under this Plan.
      The Administrator may pay cash in lieu of any fractional shares in
      settlements of awards under this Plan. The Administrator may from time to
      time impose a limit (of not greater than 100 shares) on the minimum number
      of shares that may be purchased or exercised as to awards granted under
      this Plan unless (as to any particular award) the total number purchased
      or exercised is the total number at the time available for purchase or
      exercise under the award.

	5. 	
      AWARDS

	 	5.1 	
      Type and Form of Awards. The Administrator
      shall determine the type or types of award(s) to be made to each selected
      Eligible Person. Awards may be granted singly, in combination or in
      tandem. Awards also may be made in combination or in tandem with, in
      replacement of, as alternatives to, or as the payment form for grants or
      rights under any other employee or compensation plan of the Corporation or
      one of its Subsidiaries. The types of awards that may be granted under
      this Plan are (subject, in each case, to the no repricing provisions of
      Section 3.2):

	 	 	
       

	 		
      5.1.1    Stock
      Options. A stock option is the grant of a right to purchase a
      specified number of Common Shares during a specified period as determined
      by the Administrator. An option may be intended as an incentive stock
      option within the meaning of Section 422 of the Code (an “ISO”) or
      a nonqualified stock option (an option not intended to be an ISO). The
      award agreement for an option will indicate if the option is intended as
      an ISO; otherwise it will be deemed to be a nonqualified stock option. The
      maximum term of each option (ISO or nonqualified) shall be ten (10) years.
      The per share exercise price for each option shall be not less than 100%
      of the fair market value of a Common Share on the date of grant of the
      option. When an option is exercised, the exercise price for the shares to
      be purchased shall be paid in full in cash or such other method permitted
      by the Administrator consistent with Section 5.5.

	 	 	
       

	 		
      5.1.2    Additional
      Rules Applicable to ISOs. To the extent that the aggregate fair
      market value (determined at the time of grant of the applicable option) of
      stock with respect to which ISOs first become exercisable by a participant
      in any calendar year exceeds $100,000, taking into account both Common
      Shares subject to ISOs under this Plan and stock subject to ISOs under all
      other plans of the Corporation or one of its Subsidiaries (or any parent
      or predecessor corporation to the extent required by and within the
      meaning of Section 422 of the Code and the regulations promulgated
      thereunder), such options shall be treated as nonqualified stock options.
      In reducing the number of options treated as ISOs to meet the $100,000
      limit, the most recently granted options shall be reduced first. To the
      extent a reduction of simultaneously granted options is necessary to meet
      the $100,000 limit, the Administrator may, in the manner and to the extent
      permitted by law, designate which Common Shares are to be treated as
      shares acquired pursuant to the exercise of an ISO. ISOs may only be
      granted to employees of the Corporation or one of its subsidiaries (for
      this purpose, the term “subsidiary” is used as defined in Section 424(f)
      of the Code, which generally requires an unbroken chain of ownership of at
      least 50% of the total combined voting power of all classes of stock of
      each subsidiary in the chain beginning with the Corporation and ending
      with the subsidiary in question). There shall be imposed in any award
      agreement relating to ISOs such other terms and conditions as from time to
      time are required in order that the option be an “incentive stock option”
      as that term is defined in Section 422 of the Code. No ISO may be granted
      to any person who, at the time the option is granted, owns (or is deemed
      to own under Section 424(d) of the Code) shares of outstanding Common
      Shares possessing more than 10% of the total combined voting power of all
      classes of stock of the Corporation, unless the exercise price of such
      option is at least 110% of the fair market value of the stock subject to
      the option and such option by its terms is not exercisable after the
      expiration of five years from the date such option is granted.

	 	 	
       

	 		
      5.1.3    Stock
      Appreciation Rights. A stock appreciation right or “SAR” is
      a right to receive a payment, in cash and/or Common Shares, equal to the
      excess of the fair market value of a specified number of Common Shares on the date the SAR is
      exercised over the “base price” of the award, which base price
      shall be set forth in the applicable award agreement and shall be not less
      than 100% of the fair market value of a Common Share on the date of grant
      of the SAR. The maximum term of a SAR shall be ten (10) years.

6 

	 		
      5.1.4    Other Awards;
      Dividend Equivalent Rights. The other types of awards that may be
      granted under this Plan include: (a) stock bonuses, restricted stock,
      performance stock, stock units, phantom stock or similar rights to
      purchase or acquire shares, whether at a fixed or variable price (or no
      price) or fixed or variable ratio related to the Common Shares, and any of
      which may (but need not) be fully vested at grant or vest upon the passage
      of time, the occurrence of one or more events, the satisfaction of
      performance criteria or other conditions, or any combination thereof; (b)
      any similar securities with a value derived from the value of or related
      to the Common Shares and/or returns thereon; or (c) cash awards. Dividend
      equivalent rights may be granted as a separate award or in connection with
      another award under this Plan; provided, however, that dividend equivalent
      rights may not be granted in connection with a stock option or SAR granted
      under this Plan. In addition, any dividends and/or dividend equivalents as
      to the unvested portion of a restricted stock award that is subject to
      performance-based vesting requirements or the unvested portion of a stock
      unit award that is subject to performance-based vesting requirements will
      be subject to termination and forfeiture to the same extent as the
      corresponding portion of the award to which they relate.

	 	 	
       

	 	5.2 	
      Section 162(m) Performance-Based Awards.
      Without limiting the generality of the foregoing, any of the types of
      awards listed in Section 5.1.4 above may be, and options and SARs granted
      to officers and employees (“Qualifying Options” and “Qualifying
      SARS,” respectively) typically will be, granted as awards intended to
      satisfy the requirements for “performance-based compensation” within the
      meaning of Section 162(m) of the Code (“Performance-Based
      Awards”). The grant, vesting, exercisability or payment of
      Performance-Based Awards may depend (or, in the case of Qualifying Options
      or Qualifying SARs, may also depend) on the degree of achievement of one
      or more performance goals relative to a pre-established targeted level or
      levels using one or more of the Business Criteria set forth below (on an
      absolute or relative (including, without limitation, relative to the
      performance of other companies or upon comparisons of any of the
      indicators of performance relative to other companies) basis) for the
      Corporation on a consolidated basis or for one or more of the
      Corporation’s subsidiaries, segments, divisions or business units, or any
      combination of the foregoing. Any Qualifying Option or Qualifying SAR
      shall be subject only to the requirements of Section 5.2.1 and 5.2.3 in
      order for such award to satisfy the requirements for “performance-based
      compensation” under Section 162(m) of the Code. Any other
      Performance-Based Award shall be subject to all of the following
      provisions of this Section 5.2.

	 	 	
       

	 		
      5.2.1    Class;
      Administrator. The eligible class of persons for
      Performance-Based Awards under this Section 5.2 shall be officers and
      employees of the Corporation or one of its Subsidiaries. The Administrator
      approving Performance-Based Awards or making any certification required
      pursuant to Section 5.2.4 must be constituted as provided in Section 3.1
      for awards that are intended as performance-based compensation under
      Section 162(m) of the Code.

	 	 	
       

	 		
      5.2.2    Performance
      Goals. The specific performance goals for Performance-Based
      Awards (other than Qualifying Options and Qualifying SARs) shall be, on an
      absolute or relative basis, established based on one or more of
the following business criteria (“Business Criteria”) as selected by the
Administrator in its sole discretion: earnings per share, cash flow (which means
cash and cash equivalents derived from either net cash flow from operations or
net cash flow from operations, financing and investing activities), stock price,
total shareholder return, gross revenue, revenue growth, operating income
(before or after taxes), net earnings (before or after interest, taxes,
depreciation and/or amortization), return on equity or on assets or on net
investment, cost containment or reduction, or any combination thereof. These
terms are used as applied under generally accepted accounting principles or in
the financial reporting of the Corporation or of its Subsidiaries. To qualify
awards as performance-based under Section 162(m), the applicable Business
Criterion (or Business Criteria, as the case may be) and specific performance
goal or goals (“targets”) must be established and approved by the Administrator
during the first 90 days of the performance period (and, in the case of
performance periods of less than one year, in no event after 25% or more of the
performance period has elapsed) and while performance relating to such target(s)
remains substantially uncertain within the meaning of Section 162(m) of the
Code. The terms of the Performance-Based Awards may specify the manner, if any,
in which performance targets shall be adjusted to mitigate the unbudgeted impact
of material, unusual or nonrecurring gains and losses, accounting changes or
other items specified by the Administrator at the time of establishing the
targets. The applicable performance measurement period may not be less than
three months nor more than 10 years. 

7 

5.2.3    Form of
Payment; Maximum Performance-Based Award. Grants or awards under
this Section 5.2 may be paid in cash or Common Shares or any combination
thereof. Grants of Qualifying Options and Qualifying SARs to any one participant
in any one calendar year shall be subject to the limit set forth in Section
4.2(b) . The maximum number of Common Shares which may be subject to
Performance-Based Awards (including Performance-Based Awards payable in Common
Shares and Performance-Based Awards payable in cash where the amount of cash
payable upon or following vesting of the award is determined with reference to
the fair market value of a Common Share at such time) that are granted to any
one participant in any one fiscal year of the Corporation shall not exceed
2,000,000 shares (counting such shares on a one-for-one basis for this
purpose), either individually or in the aggregate, subject to adjustment as
provided in Section 7.1; provided that this limit shall not apply to Qualifying
Options and Qualifying SARs (which are covered by the limit of Section 4.2(b)) .
The aggregate amount of compensation to be paid to any one participant in
respect of all Performance-Based Awards payable only in cash (excluding cash
awards covered by the preceding sentence where the cash payment is determined
with reference to the fair market value of a Common Share upon or following the
vesting of the award) and granted to that participant in any one fiscal year of
the Corporation shall not exceed $5,000,000. Awards that are cancelled during
the year shall be counted against these limits to the extent required by Section
162(m) of the Code. 

5.2.4   
Certification of Payment. Before any Performance-Based Award
under this Section 5.2 (other than Qualifying Options and Qualifying SARs) is
paid and to the extent required to qualify the award as performance-based
compensation within the meaning of Section 162(m) of the Code, the Administrator
must certify in writing that the performance target(s) and any other material
terms of the Performance-Based Award were in fact timely satisfied.

5.2.5   
Reservation of Discretion. Subject to Section 3 hereof and
applicable laws, the Administrator will have the discretion to determine the
restrictions or other limitations of the individual awards granted under this Section 5.2
      including the authority to reduce awards, payouts or vesting or to pay no
      awards, in its sole discretion, if the Administrator preserves such
      authority at the time of grant by language to this effect in its
      authorizing resolutions or otherwise.

8 

	 		
      5.2.6 Expiration of Grant Authority.
      As required pursuant to Section 162(m) of the Code and the regulations
      promulgated thereunder, the Administrator’s authority to grant new awards
      that are intended to qualify as performance-based compensation within the
      meaning of Section 162(m) of the Code (other than Qualifying Options and
      Qualifying SARs) shall terminate upon the first meeting of the
      Corporation’s shareholders that occurs in the fifth year following the
      year in which the Corporation’s shareholders first approve this Plan,
      subject to any subsequent extension that may be approved by
      shareholders.

	 	 	 
	 	5.3 	
      Award Agreements. Each award shall be
      evidenced by either (1) a written award agreement in a form approved by
      the Administrator and executed by the Corporation by an officer duly
      authorized to act on its behalf, or (2) an electronic notice of award
      grant in a form approved by the Administrator and recorded by the
      Corporation (or its designee) in an electronic recordkeeping system used
      for the purpose of tracking award grants under this Plan generally (in
      each case, an “award agreement”), as the Administrator may provide and, in
      each case and if required by the Administrator, executed or otherwise
      electronically accepted by the recipient of the award in such form and
      manner as the Administrator may require. The Administrator may authorize
      any officer of the Corporation (other than the particular award recipient)
      to execute any or all award agreements on behalf of the Corporation. The
      award agreement shall set forth the material terms and conditions of the
      award as established by the Administrator consistent with the express
      limitations of this Plan.

	 	 	 
	 	5.4 	
      Deferrals and Settlements. Payment of
      awards may be in the form of cash, Common Shares, other awards or
      combinations thereof as the Administrator shall determine, and with such
      restrictions as it may impose. The Administrator may also require or
      permit participants to elect to defer the issuance of shares or the
      settlement of awards in cash under such rules and procedures as it may
      establish under this Plan. The Administrator may also provide that
      deferred settlements include the payment or crediting of interest or other
      earnings on the deferral amounts, or the payment or crediting of dividend
      equivalents where the deferred amounts are denominated in
shares.

	 	 	 
	 	5.5 	
      Consideration for Common Shares or Awards.
      The purchase price for any award granted under this Plan or the Common
      Shares to be delivered pursuant to an award, as applicable, may be paid by
      means of any lawful consideration as determined by the Administrator,
      including, without limitation, one or a combination of the following
      methods:

	 	• 	
      services rendered by the recipient of such award;
  

	 	• 	
      cash, check payable to the order of the Corporation, or
      electronic funds transfer; 

	 	• 	
      notice and third party payment in such manner as may be
      authorized by the Administrator; 

	 	• 	
      the delivery of previously owned Common Shares;

	 	• 	
      by a reduction in the number of shares otherwise
      deliverable pursuant to the award; or 

	 	• 	
      subject to such procedures as the Administrator may
      adopt, pursuant to a “cashless exercise” with a third party who provides
      financing for the purposes of (or who otherwise facilitates) the purchase
      or exercise of awards. 

9 

	 		
      In no event shall any shares newly-issued by the
      Corporation be issued for less than the minimum lawful consideration for
      such shares or for consideration other than consideration permitted by
      applicable law. Common Shares used to satisfy the exercise price of an
      option shall be valued at their fair market value on the date of exercise.
      The Corporation will not be obligated to deliver any shares unless and
      until it receives full payment of the exercise or purchase price therefor
      and any related withholding obligations under Section 8.5 and any other
      conditions to exercise or purchase have been satisfied. Unless otherwise
      expressly provided in the applicable award agreement, the Administrator
      may at any time eliminate or limit a participant’s ability to pay the
      purchase or exercise price of any award or shares by any method other than
      cash payment to the Corporation. Common Shares delivered pursuant to
      Awards granted under this Plan, when the applicable consideration therefor
      shall have been received by the Corporation, shall be duly issued as fully
      paid and non-assessable.

	 	 	
       

	 	5.6 	
      Definition of Fair Market Value. For
      purposes of this Plan, “fair market value” shall mean, unless otherwise
      determined or provided by the Administrator in the circumstances, the
      closing price (in regular trading) for a Common Share on the NASDAQ Stock
      Market (the “Market”) for the date in question or, if no sales of
      Common Shares were reported on the Market on that date, the closing price
      (in regular trading) for a Common Share on the Market for the next
      preceding day on which sales of Common Shares were reported on the Market.
      The Administrator may, however, provide with respect to one or more awards
      that the fair market value shall equal the closing price (in regular
      trading) for a Common Share on the Market on the last trading day
      preceding the date in question or the average of the high and low trading
      prices of a Common Share on the Market for the date in question or the
      most recent trading day. If the Common Shares are no longer listed or are
      no longer actively traded on the Market as of the applicable date, the
      fair market value of the Common Shares shall be the value as reasonably
      determined by the Administrator for purposes of the award in the
      circumstances. The Administrator also may adopt a different methodology
      for determining fair market value with respect to one or more awards if a
      different methodology is necessary or advisable to secure any intended
      favorable tax, legal or other treatment for the particular award(s) (for
      example, and without limitation, the Administrator may provide that fair
      market value for purposes of one or more awards will be based on an
      average of closing prices (or the average of high and low daily trading
      prices) for a specified period preceding the relevant date).

	 	 	
       

	 	5.7 	
      Transfer Restrictions.

	 	 	
       

	 		
      5.7.1    Limitations
      on Exercise and Transfer. Unless otherwise expressly provided in
      (or pursuant to) this Section 5.7 or required by applicable law: (a) all
      awards are non-transferable and shall not be subject in any manner to
      sale, transfer, anticipation, alienation, assignment, pledge, encumbrance
      or charge; (b) awards shall be exercised only by the participant; and (c)
      amounts payable or shares issuable pursuant to any award shall be
      delivered only to (or for the account of) the participant.

	 	 	
       

	 		
      5.7.2   
      Exceptions. The Administrator may permit awards to be
      exercised by and paid to, or otherwise transferred to, other persons or
      entities pursuant to such conditions and procedures, including limitations
      on subsequent transfers, as the Administrator may, in its sole discretion,
      establish in writing. Any permitted transfer shall be subject to
      compliance with applicable federal, provincial and state securities laws
      and shall not be for value (other than nominal
  consideration, settlement of marital property rights,
or for interests in an entity in which more than 50% of the voting interests are
held by the Eligible Person or by the Eligible Person’s family members).

10 

5.7.3    Further
Exceptions to Limits on Transfer. The exercise and transfer restrictions
in Section 5.7.1 shall not apply to:

	 	(a) 	
      transfers to the Corporation (for example, in connection
      with the expiration or termination of the award),

	 	 	 
	 	(b) 	
      the designation of a beneficiary to receive benefits in
      the event of the participant’s death or, if the participant has died,
      transfers to or exercise by the participant’s beneficiary, or, in the
      absence of a validly designated beneficiary or if such designation cannot
      be validly made, transfers by will or the laws of descent and
      distribution,

	 	 	 
	 	(c) 	
      subject to any applicable limitations on ISOs, transfers
      to a family member (or former family member) pursuant to a domestic
      relations order if approved or ratified by the Administrator,

	 	 	 
	 	(d) 	
      if the participant has suffered a disability, permitted
      transfers or exercises on behalf of the participant by his or her legal
      representative, or

	 	 	 
	 	(e) 	
      the authorization by the Administrator of “cashless
      exercise” procedures with third parties who provide financing for the
      purpose of (or who otherwise facilitate) the exercise of awards consistent
      with applicable laws and the express authorization of the
      Administrator.

	 	5.8 	
      International Awards. One or more awards
      may be granted to Eligible Persons who provide services to the Corporation
      or one of its Subsidiaries outside of the United States. Any awards
      granted to such persons may be granted pursuant to the terms and
      conditions of any applicable sub-plans, if any, appended to this Plan and
      approved by the Administrator. The awards so granted need not comply with
      other specific terms of this Plan, provided that shareholder approval of
      any deviation from the specific terms of this Plan is not required by
      applicable law or any applicable listing
agency.

	6. 	
      EFFECT OF TERMINATION OF EMPLOYMENT OR SERVICE ON
      AWARDS

	 	6.1 	
      General. The Administrator shall establish
      the effect of a termination of employment or service on the rights and
      benefits under each award under this Plan and in so doing may make
      distinctions based upon, inter alia, the cause of termination and type of
      award. If the participant is not an employee of the Corporation or one of
      its Subsidiaries and provides other services to the Corporation or one of
      its Subsidiaries, the Administrator shall be the sole judge for purposes
      of this Plan (unless a contract or the award otherwise provides) of
      whether the participant continues to render services to the Corporation or
      one of its Subsidiaries and the date, if any, upon which such services
      shall be deemed to have terminated.

	 	 	 
	 	6.2 	
      Events Not Deemed Terminations of Service.
      Unless the express policy of the Corporation or one of its Subsidiaries,
      or the Administrator, otherwise provides, or except as otherwise required
      by applicable law, the employment relationship shall not be considered
      terminated in the case of (a) sick leave, (b) military leave, or (c) any other leave of
      absence authorized by the Corporation or one of its Subsidiaries, or the
      Administrator; provided that, unless reemployment upon the expiration of
      such leave is guaranteed by contract or law or the Administrator otherwise
      provides, such leave is for a period of not more than three months. In the
      case of any employee of the Corporation or one of its Subsidiaries on an
      approved leave of absence, continued vesting of the award while on leave
      from the employ of the Corporation or one of its Subsidiaries may be
      suspended until the employee returns to service, unless the Administrator
      otherwise provides or applicable law otherwise requires. In no event shall
      an award be exercised after the expiration of the term set forth in the
      applicable award agreement.

11 

	 	6.3 	
      Effect of Change of Subsidiary Status. For
      purposes of this Plan and any award, if an entity ceases to be a
      Subsidiary of the Corporation a termination of employment or service shall
      be deemed to have occurred with respect to each Eligible Person in respect
      of such Subsidiary who does not continue as an Eligible Person in respect
      of the Corporation or another Subsidiary that continues as such after
      giving effect to the transaction or other event giving rise to the change
      in status unless the Subsidiary that is sold, spun-off or otherwise
      divested (or its successor or a direct or indirect parent of such
      Subsidiary or successor) assumes the Eligible Person’s award(s) in
      connection with such transaction.

	7. 	
      ADJUSTMENTS;
ACCELERATION

	 	7.1 	
      Adjustments. Subject to Section 7.2, upon
      (or, as may be necessary to effect the adjustment, immediately prior to):
      any reclassification, recapitalization, stock split (including a stock
      split in the form of a stock dividend) or reverse stock split; any merger,
      amalgamation, combination, consolidation, conversion or other
      reorganization; any spin-off, split-up, or similar extraordinary dividend
      distribution in respect of the Common Shares; or any exchange of Common
      Shares or other securities of the Corporation, or any similar, unusual or
      extraordinary corporate transaction in respect of the Common Shares; then
      the Administrator shall equitably and proportionately adjust (1) the
      number and type of Common Shares (or other securities) that thereafter may
      be made the subject of awards (including the specific share limits,
      maximums and numbers of shares set forth elsewhere in this Plan), (2) the
      number, amount and type of Common Shares (or other securities or property)
      subject to any outstanding awards, (3) the grant, purchase, or exercise
      price (which term includes the base price of any SAR or similar right) of
      any outstanding awards, and/or (4) the securities, cash or other property
      deliverable upon exercise or payment of any outstanding awards, in each
      case to the extent necessary to preserve (but not increase) the level of
      incentives intended by this Plan and the then-outstanding
awards.

	 	 	 
	 		
      Unless otherwise expressly provided in the applicable
      award agreement, upon (or, as may be necessary to effect the adjustment,
      immediately prior to) any event or transaction described in the preceding
      paragraph or a sale of all or substantially all of the business or assets
      of the Corporation as an entirety, the Administrator shall equitably and
      proportionately adjust the performance standards applicable to any
      then-outstanding performance-based awards to the extent necessary to
      preserve (but not increase) the level of incentives intended by this Plan
      and the then-outstanding performance-based awards.

	 	 	 
	 		
      It is intended that, if possible, any adjustments
      contemplated by the preceding two paragraphs be made in a manner that
      satisfies applicable Canadian and U.S. legal, tax (including,
    without limitation and as applicable in the circumstances,
      Section 424 of the Code, Section 409A of the Code and Section 162(m) of
      the Code) and accounting (so as to not trigger any charge to earnings with
      respect to such adjustment) requirements.

12 

	 		
      Without limiting the generality of Section 3.3, any good
      faith determination by the Administrator as to whether an adjustment is
      required in the circumstances pursuant to this Section 7.1, and the extent
      and nature of any such adjustment, shall be conclusive and binding on all
      persons.

			
	 	7.2 	
      Corporate Transactions - Assumption and Termination
      of Awards. Upon the occurrence of any of the following: any
      recapitalization, merger, amalgamation, combination, consolidation,
      conversion or other reorganization in connection with which the
      Corporation does not survive (or does not survive as a public Corporation
      in respect of its Common Shares); any exchange of Common Shares or other
      securities of the Corporation in connection with which the Corporation
      does not survive (or does not survive as a public Corporation in respect
      of its Common Shares); a sale of all or substantially all the business,
      stock or assets of the Corporation in connection with which the
      Corporation does not survive (or does not survive as a public Corporation
      in respect of its Common Shares); a dissolution of the Corporation; or any
      other event in which the Corporation does not survive (or does not survive
      as a public Corporation in respect of its Common Shares); then the
      Administrator may make provision for a cash payment in settlement of, or
      for the termination, assumption, substitution or exchange of any or all
      outstanding share-based awards or the cash, securities or property
      deliverable to the holder of any or all outstanding share-based awards,
      based upon, to the extent relevant under the circumstances, the
      distribution or consideration payable to holders of the Common Shares upon
      or in respect of such event. Upon the occurrence of any event described in
      the preceding sentence, then, unless the Administrator has made a
      provision for the substitution, assumption, exchange or other continuation
      or settlement of the award or the award would otherwise continue in
      accordance with its terms in the circumstances: (1) unless otherwise
      provided in the applicable award agreement, each then- outstanding option
      and SAR shall become fully vested, all shares of restricted stock then
      outstanding shall fully vest free of restrictions, and each other award
      granted under this Plan that is then outstanding shall become payable to
      the holder of such award; and (2) each award shall terminate upon the
      related event; provided that the holder of an option or SAR shall be given
      reasonable advance notice of the impending termination and a reasonable
      opportunity to exercise his or her outstanding vested options and SARs
      (after giving effect to any accelerated vesting required in the
      circumstances) in accordance with their terms before the termination of
      such awards (except that in no case shall more than ten days’ notice of
      the impending termination be required and any acceleration of vesting and
      any exercise of any portion of an award that is so accelerated may be made
      contingent upon the actual occurrence of the event).

			
	 		
      Without limiting the preceding paragraph, in connection
      with any event referred to in the preceding paragraph or any change in
      control event defined in any applicable award agreement, the Administrator
      may, in its discretion, provide for the accelerated vesting of any award
      or awards as and to the extent determined by the Administrator in the
      circumstances.

			
	 		
      The Administrator may adopt such valuation methodologies
      for outstanding awards as it deems reasonable in the event of a cash or
      property settlement and, in the case of options, SARs or similar rights,
      but without limitation on other methodologies, may base such settlement
      solely upon the excess if any of the per share amount payable upon or in
      respect of such event over the exercise or base price of the award.

13 

	 		
      In any of the events referred to in this Section 7.2, the
      Administrator may take such action contemplated by this Section 7.2 prior
      to such event (as opposed to on the occurrence of such event) to the
      extent that the Administrator deems the action necessary to permit the
      participant to realize the benefits intended to be conveyed with respect
      to the underlying shares. Without limiting the generality of the
      foregoing, the Administrator may deem an acceleration and/or termination
      to occur immediately prior to the applicable event and, in such
      circumstances, will reinstate the original terms of the award if an event
      giving rise to an acceleration and/or termination does not
occur.

	 	 	 
	 		
      Without limiting the generality of Section 3.3, any good
      faith determination by the Administrator pursuant to its authority under
      this Section 7.2 shall be conclusive and binding on all persons.

	 	 	 
	 	7.3 	
      Other Acceleration Rules. The Administrator
      may override the provisions of Section 7.2 by express provision in the
      award agreement and may accord any Eligible Person a right to refuse any
      acceleration, whether pursuant to the award agreement or otherwise, in
      such circumstances as the Administrator may approve. The portion of any
      ISO accelerated in connection with an event referred to in Section 7.2 (or
      such other circumstances as may trigger accelerated vesting of the award)
      shall remain exercisable as an ISO only to the extent the applicable
      $100,000 limitation on ISOs is not exceeded. To the extent exceeded, the
      accelerated portion of the option shall be exercisable as a nonqualified
      stock option under the Code.

	8. 	
      OTHER PROVISIONS

	 	8.1 	
      Compliance with Laws. This Plan, the
      granting and vesting of awards under this Plan, the offer, issuance and
      delivery of Common Shares, and/or the payment of money under this Plan or
      under awards are subject to compliance with all applicable federal,
      provincial, state, local and foreign laws, rules and regulations
      (including but not limited to provincial, state and federal securities law
      and federal margin requirements) and to such approvals by any listing,
      regulatory or governmental authority as may, in the opinion of counsel for
      the Corporation, be necessary or advisable in connection therewith. The
      person acquiring any securities under this Plan will, if requested by the
      Corporation or one of its Subsidiaries, provide such assurances and
      representations to the Corporation or one of its Subsidiaries as the
      Administrator may deem necessary or desirable to assure compliance with
      all applicable legal and accounting requirements.

	 	 	 
	 	8.2 	
      No Rights to Award. No person shall have
      any claim or rights to be granted an award (or additional awards, as the
      case may be) under this Plan, subject to any express contractual rights
      (set forth in a document other than this Plan) to the contrary.

	 	 	 
	 	8.3 	
      No Employment/Service Contract. Nothing
      contained in this Plan (or in any other documents under this Plan or in
      any award) shall confer upon any Eligible Person or other participant any
      right to continue in the employ or other service of the Corporation or one
      of its Subsidiaries, constitute any contract or agreement of employment or
      other service or affect an employee’s status as an employee at will, nor
      shall interfere in any way with the right of the Corporation or one of its
      Subsidiaries to change a person’s compensation or other benefits, or to
      terminate his or her employment or other service, with or without cause.
      Nothing in this Section 8.3, however, is intended to adversely affect any
      express independent right of such person under a
separate employment or service contract other than an award
      agreement.

14 

	 	8.4 	
      Plan Not Funded. Awards payable under this
      Plan shall be payable in shares or from the general assets of the
      Corporation, and no special or separate reserve, fund or deposit shall be
      made to assure payment of such awards. No participant, beneficiary or
      other person shall have any right, title or interest in any fund or in any
      specific asset (including Common Shares, except as expressly otherwise
      provided) of the Corporation or one of its Subsidiaries by reason of any
      award hereunder. Neither the provisions of this Plan (or of any related
      documents), nor the creation or adoption of this Plan, nor any action
      taken pursuant to the provisions of this Plan shall create, or be
      construed to create, a trust of any kind or a fiduciary relationship
      between the Corporation or one of its Subsidiaries and any participant,
      beneficiary or other person. To the extent that a participant, beneficiary
      or other person acquires a right to receive payment pursuant to any award
      hereunder, such right shall be no greater than the right of any unsecured
      general creditor of the Corporation.

	 	 	 
	 	8.5 	
      Tax Withholding. Upon any exercise,
      vesting, or payment of any award, or upon the disposition of Common Shares
      acquired pursuant to the exercise of an ISO prior to satisfaction of the
      holding period requirements of Section 422 of the Code, or upon any other
      tax withholding event with respect to any award, arrangements satisfactory
      to the Corporation shall be made to provide for any taxes the Corporation
      or any of its Subsidiaries may be required to withhold with respect to
      such award event or payment. Such arrangements may include (but are not
      limited to) any one of (or a combination of) the
  following:

	 	(a) 	
      The Corporation or one of its Subsidiaries shall have the
      right to require the participant (or the participant’s personal
      representative or beneficiary, as the case may be) to pay or provide for
      payment of at least the minimum amount of any taxes which the Corporation
      or one of its Subsidiaries may be required to withhold with respect to
      such award event or payment.

	 	 	 
	 	(b) 	
      The Corporation or one of its Subsidiaries shall have the
      right to deduct from any amount otherwise payable in cash (whether related
      to the award or otherwise) to the participant (or the participant’s
      personal representative or beneficiary, as the case may be) the minimum
      amount of any taxes which the Corporation or one of its Subsidiaries may
      be required to withhold with respect to such award event or
  payment.

	 	 	 
	 	(c) 	
      In any case where a tax is required to be withheld in
      connection with the delivery of Common Shares under this Plan, the
      Administrator may in its sole discretion (subject to Section 8.1) require
      or grant (either at the time of the award or thereafter) to the
      participant the right to elect, pursuant to such rules and subject to such
      conditions as the Administrator may establish, that the Corporation reduce
      the number of shares to be delivered by (or otherwise reacquire) the
      appropriate number of shares, valued in a consistent manner at their fair
      market value or at the sales price in accordance with authorized
      procedures for cashless exercises, necessary to satisfy the minimum
      applicable withholding obligation on exercise, vesting or payment. In no
      event shall the shares withheld exceed the minimum whole number of shares
      required for tax withholding under applicable law.

15 

	 	8.6 	Effective Date, Termination and Suspension,
      Amendments.
	 	 	 
	 		
      8.6.1    Effective
      Date. This Plan is effective as of May 15, 2015, the date of its
      approval by the Board (the “Effective Date”). This Plan shall be
      submitted for and subject to shareholder approval no later than twelve
      months after the Effective Date. Unless earlier terminated by the Board,
      this Plan shall terminate at the close of business on the day before the
      tenth anniversary of the Effective Date. After the termination of this
      Plan either upon such stated expiration date or its earlier termination by
      the Board, no additional awards may be granted under this Plan, but
      previously granted awards (and the authority of the Administrator with
      respect thereto, including the authority to amend such awards) shall
      remain outstanding in accordance with their applicable terms and
      conditions and the terms and conditions of this Plan.

	 	 	
       

	 		
      8.6.2    Board
      Authorization. The Board may, at any time, terminate or, from time
      to time, amend, modify or suspend this Plan, in whole or in part. No
      awards may be granted during any period that the Board suspends this
      Plan.

	 	 	
       

	 		
      8.6.3    Shareholder
      Approval. To the extent then required by applicable law or any
      applicable listing agency or required under Sections 162, 422 or 424 of
      the Code to preserve the intended tax consequences of this Plan, or deemed
      necessary or advisable by the Board, any amendment to this Plan shall be
      subject to shareholder approval.

	 	 	
       

	 		
      8.6.4    Amendments to
      Awards. Without limiting any other express authority of the
      Administrator under (but subject to) the express limits of this Plan, the
      Administrator by agreement or resolution may waive conditions of or
      limitations on awards to participants that the Administrator in the prior
      exercise of its discretion has imposed, without the consent of a
      participant, and (subject to the requirements of Sections 3.2 and 8.6.5)
      may make other changes to the terms and conditions of awards. Any
      amendment or other action that would constitute a repricing of an award is
      subject to the limitations set forth in Section 3.2.

	 	 	
       

	 		
      8.6.5    Limitations
      on Amendments to Plan and Awards. No amendment, suspension or
      termination of this Plan or amendment of any outstanding award agreement
      shall, without written consent of the participant, affect in any manner
      materially adverse to the participant any rights or benefits of the
      participant or obligations of the Corporation under any award granted
      under this Plan prior to the effective date of such change. Changes,
      settlements and other actions contemplated by Section 7 shall not be
      deemed to constitute changes or amendments for purposes of this Section
      8.6.

	 	 	
       

	 	8.7 	
      Privileges of Stock Ownership. Except as
      otherwise expressly authorized by the Administrator, a participant shall
      not be entitled to any privilege of stock ownership as to any Common
      Shares not actually delivered to and held of record by the participant.
      Except as expressly required by Section 7.1 or otherwise expressly
      provided by the Administrator, no adjustment will be made for dividends or
      other rights as a shareholder for which a record date is prior to such
      date of delivery.

	 	 	
       

	 	8.8 	
      Governing Law; Construction;
      Severability.

	 	 	
       

	 		
      8.8.1    Choice of
      Law. This Plan, the awards, all documents evidencing awards and
      all other related documents shall be governed by, and construed in
      accordance with the laws of the state of California and the federal laws
      of the United States of America applicable thereto without
  recourse to their conflict of laws rules.

16 

8.8.2   
Severability. If a court of competent jurisdiction holds any provision
invalid and unenforceable, the remaining provisions of this Plan shall continue
in effect. 

8.8.3    Plan
Construction.

	 	(a) 	
      Rule 16b-3. It is the intent of the Corporation
      that the awards and transactions permitted by awards be interpreted in a
      manner that, in the case of participants who are or may be subject to
      Section 16 of the Exchange Act, qualify, to the maximum extent compatible
      with the express terms of the award, for exemption from matching liability
      under Rule 16b-3 promulgated under the Exchange Act. Notwithstanding the
      foregoing, the Corporation shall have no liability to any participant for
      Section 16 consequences of awards or events under awards if an award or
      event does not so qualify.

	 	 	 
	 	(b) 	
      Section 162(m). Awards under Section 5.1.4 to
      persons described in Section 5.2 that are either granted or become vested,
      exercisable or payable based on attainment of one or more performance
      goals related to the Business Criteria, as well as Qualifying Options and
      Qualifying SARs granted to persons described in Section 5.2, that are
      approved by a committee composed solely of two or more outside directors
      (as this requirement is applied under Section 162(m) of the Code) shall be
      deemed to be intended as performance-based compensation within the meaning
      of Section 162(m) of the Code unless such committee provides otherwise at
      the time of grant of the award. It is the further intent of the
      Corporation that (to the extent the Corporation or one of its Subsidiaries
      or awards under this Plan may be or become subject to limitations on
      deductibility under Section 162(m) of the Code) any such awards and any
      other Performance- Based Awards under Section 5.2 that are granted to or
      held by a person subject to Section 162(m) will qualify as
      performance-based compensation or otherwise be exempt from deductibility
      limitations under Section 162(m).

	 	8.9 	
      Captions. Captions and headings are given
      to the sections and subsections of this Plan solely as a convenience to
      facilitate reference. Such headings shall not be deemed in any way
      material or relevant to the construction or interpretation of this Plan or
      any provision thereof.

	 	 	 
	 	8.10 	
      Stock-Based Awards in Substitution for Stock
      Options or Awards Granted by Other Corporation. Awards may be
      granted to Eligible Persons in substitution for or in connection with an
      assumption of employee stock options, SARs, restricted stock or other
      stock-based awards granted by other entities to persons who are or who
      will become Eligible Persons in respect of the Corporation or one of its
      Subsidiaries, in connection with a distribution, merger or other
      reorganization by or with the granting entity or an affiliated entity, or
      the acquisition by the Corporation or one of its Subsidiaries, directly or
      indirectly, of all or a substantial part of the stock or assets of the
      employing entity. The awards so granted need not comply with other
      specific terms of this Plan, provided the awards reflect only adjustments
      giving effect to the assumption or substitution consistent with the
      conversion applicable to the Common Shares in the transaction and any
      change in the issuer of the security. Any shares that are delivered and
      any awards that are granted by, or become obligations of, the Corporation,
      as a result of the assumption by the Corporation of, or
  in substitution for, outstanding awards previously granted
      by an acquired Corporation (or previously granted by a predecessor
      employer (or direct or indirect parent thereof) in the case of persons
      that become employed by the Corporation or one of its Subsidiaries in
      connection with a business or asset acquisition or similar transaction)
      shall not be counted against the Share Limit or other limits on the number
      of shares available for issuance under this Plan. 

17 

	 	8.11 	
      Non-Exclusivity of Plan. Nothing in this
      Plan shall limit or be deemed to limit the authority of the Board or the
      Administrator to grant awards or authorize any other compensation, with or
      without reference to the Common Shares, under any other plan or authority.
      

	 	 	     
	 	8.12 	
      No Corporate Action Restriction. The
      existence of this Plan, the award agreements and the awards granted
      hereunder shall not limit, affect or restrict in any way the right or
      power of the Corporation or any Subsidiary (or any of their respective
      shareholders, boards of directors or committees thereof, as the case may
      be) to make or authorize: (a) any adjustment, recapitalization,
      reorganization or other change in the capital structure or business of the
      Corporation or any Subsidiary, (b) any merger, amalgamation, consolidation
      or change in the ownership of the Corporation or any Subsidiary, (c) any
      issue of bonds, debentures, capital, preferred or prior preference stock
      ahead of or affecting the capital stock (or the rights thereof) of the
      Corporation or any Subsidiary, (d) any dissolution or liquidation of the
      Corporation or any Subsidiary, (e) any sale or transfer of all or any part
      of the assets or business of the Corporation or any Subsidiary, or (f) any
      other corporate act or proceeding by the Corporation or any Subsidiary. No
      participant, beneficiary or any other person shall have any claim under
      any award or award agreement against any member of the Board or the
      Administrator, or the Corporation or any employees, officers or agents of
      the Corporation or any Subsidiary, as a result of any such action.
  

	 	 	     
	 	8.13 	
      Other Corporation Benefit and Compensation
      Programs. Payments and other benefits received by a participant
      under an award made pursuant to this Plan shall not be deemed a part of a
      participant’s compensation for purposes of the determination of benefits
      under any other employee welfare or benefit plans or arrangements, if any,
      provided by the Corporation or any Subsidiary, except where the
      Administrator expressly otherwise provides or authorizes in writing.
      Awards under this Plan may be made in addition to, in combination with, as
      alternatives to or in payment of grants, awards or commitments under any
      other plans or arrangements of the Corporation or its Subsidiaries.
  

	 	 	     
	 	8.14 	
      Clawback Policy. The awards granted under
      this Plan are subject to the terms of the Corporation’s recoupment,
      clawback or similar policy as it may be in effect from time to time, as
      well as any similar provisions of applicable law, any of which could in
      certain circumstances require repayment or forfeiture of awards or any
      Common Shares or other cash or property received with respect to the
      awards (including any value received from a disposition of the shares
      acquired upon payment of the awards). 

18 

SPHERE 3D CORP. 

2015 PERFORMANCE INCENTIVE PLAN 

Canadian Residents Addendum 

Section
1            
Application 

                             This
addendum applies to a Participant who is a resident of Canada under the Income
Tax Act (Canada) or an applicable tax treaty to which Canada is a party
(hereinafter referred to as a “Canadian Participant”). 

Section
2             Stock
Options 

                             Stock
Options granted to Canadian Participants shall not be settled in cash unless at
the request of the Canadian Participant, which request the Corporation may in
its sole and entire discretion grant or deny. Stock Options granted to Canadian
Participants shall not be settled with Shares other than Shares issued from
treasury. 

Section
3             Restricted
Stock and Incentive Stock Options 

                            
Restricted Stock, Incentive Stock Options and awards that are subject to
forfeiture (other than restricted stock units and stock options that are subject
to vesting requirements) shall not be granted to Canadian Participants. 

Section
4             Stock
Appreciation Rights 

                             Stock
Appreciation Rights granted to Canadian Participants shall be exercised and
settled immediately upon vesting. 

Section
5             Restricted
Stock Units 

                             Restricted
Stock Units, stock bonuses, stock units, phantom stock and similar rights or
awards granted to Canadian Participants shall vest and be payable no later than
December 31 of the third year following the year in which the award was granted.

Section
6             Tendering
of Shares 

                             The
tendering of shares by a Canadian Participant to satisfy the Canadian
Participant’s federal, provincial or other taxes as required by law to be
withheld with respect to such awards, or to satisfy the exercise price of an
award, shall not be available to Canadian Participants. 

Section
7            
Designation of beneficiary 

                     
       A designation of beneficiary
shall not be available to a Canadian Participant who is a resident in the
Province of Quebec. Upon the death of a Canadian Participant who was a resident
in the Province of Quebec immediately before the Canadian Participant’s death,
any and all distribution of shares and/or cash payable pursuant to the terms of
the Plan and any exercise of an award shall solely be made by or to the
administrator, executor or liquidator of the Canadian Participant’s estate. A
designation of Beneficiary by a Canadian Participant, residing in a Province
other than the Province of Quebec or in a territory in Canada, pursuant to the
Plan shall be subject to the requirements of the province or territory of domicile of such
Canadian Participant.

19 

Section
8           
 Miscellaneous 

The following shall be inserted in any award to be completed by
a Canadian Participant who is a resident in the Province of Quebec: “The parties
hereto have agreed that this Subscription Agreement and the Plan be drafted in
English. Les parties aux présentes ont convenu que le présent document et les
règles du régime soient rédigés en anglais. 

20

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