Document:

Exhibit 10.4

 

PURCHASE
AND SALE AGREEMENT

 

BETWEEN

 

U.S.
RETAIL INCOME FUND VIII-E, LIMITED PARTNERSHIP

 

(“SELLER”)

 

AND

 

KRG
DEVELOPMENT, LLC (“BUYER”)

 

FOR

 

PLAZA
VOLENTE SHOPPING CENTER, AUSTIN, TEXAS

 

 

March 3,
2005

 

 

SCHEDULE OF
EXHIBITS

 

	
   

  	
   

  	
   

  	
  Reference

  
	
  Exhibit “A”

  	
  Property Description

  	
   

  	
  p. 5

  
	
   

  	
   

  	
   

  	
   

  
	
  Exhibit “B”

  	
  List of Personal
  Property

  	
   

  	
  p. 4

  
	
   

  	
   

  	
   

  	
   

  
	
  Exhibit “C”

  	
  List of Existing
  Commission Agreements and Management Agreement

  	
   

  	
  pp. 2, 4 & § 4.1(f)

  
	
   

  	
   

  	
   

  	
   

  
	
  Exhibit “D”

  	
  Form of Escrow
  Agreement

  	
   

  	
  p. 2

  
	
   

  	
   

  	
   

  	
   

  
	
  Exhibit “E”

  	
  Lists of Existing
  Environmental Reports

  	
   

  	
  p. 3

  
	
   

  	
   

  	
   

  	
   

  
	
  Exhibit “F”

  	
  Rent Roll

  	
   

  	
  p. 5

  
	
   

  	
   

  	
   

  	
   

  
	
  Exhibit “G”

  	
  Exception Schedules

  	
   

  	
  § 4.1(i)

  
	
   

  	
   

  	
   

  	
   

  
	
  Exhibit “H”

  	
  Lists of Operating
  Agreements

  	
   

  	
  p. 4

  
	
   

  	
   

  	
   

  	
   

  
	
  Exhibit “I”

  	
  Form of Tenant
  Estoppel Certificate

  	
   

  	
  p. 5 & § 6.1(d)

  
	
   

  	
   

  	
   

  	
   

  
	
  Exhibit “J”

  	
  Property Tax Appeals

  	
   

  	
  § 4.1(g)

  
	
   

  	
   

  	
   

  	
   

  
	
  Exhibit “K”

  	
  Unpaid Tenant
  Inducement Costs and Leasing Commissions re current tenants for which Seller
  is responsible

  	
   

  	
  § 5.4(e)

  
	
   

  	
   

  	
   

  	
   

  
	
  Exhibit “L”

  	
  Due Diligence Materials
  Received by Purchaser

  	
   

  	
  § 3.2(a)

  

 

ii

 

SCHEDULE OF
CLOSING DOCUMENTS

 

	
  Schedule 1

  	
  Form of
  Special Warranty Deed

  	
   

  
	
   

  	
   

  	
   

  
	
  Schedule 2

  	
  Form of
  Assignment and Assumption of Leases and Security Deposits and Leasing
  Commission Obligations arising after Closing

  	
   

  
	
   

  	
   

  	
   

  
	
  Schedule 3

  	
  Form of
  Bill of Sale to Personal Property

  	
   

  
	
   

  	
   

  	
   

  
	
  Schedule 4

  	
  Form of
  Assignment and Assumption of Operating Agreements

  	
   

  
	
   

  	
   

  	
   

  
	
  Schedule 5

  	
  Form of
  General Assignment of Seller’s Interest in Intangible Property

  	
   

  
	
   

  	
   

  	
   

  
	
  Schedule 4.1(m)

  	
  Disclosure of Condemnation

  	
   

  
	
   

  	
   

  	
   

  
	
  Schedule 6

  	
  Form of
  Seller’s Affidavit (for Purchaser’s Title Insurance Purposes)

  	
   

  
	
   

  	
   

  	
   

  
	
  Schedule 7

  	
  Form of
  Seller’s Certificate (as to Seller’s Representations and Warranties)

  	
   

  
	
   

  	
   

  	
   

  
	
  Schedule 8

  	
  Form of
  Seller’s FIRPTA Affidavit

  	
   

  
	
   

  	
   

  	
   

  
	
  Schedule 10

  	
  Form of
  Purchaser’s Certificate (as to Purchaser’s Representations and Warranties)

  	
   

  
	
   

  	
   

  	
   

  
	
  Schedule 11

  	
  Form of
  Seller’s Estoppel (as to Leases)

  	
   

  

 

iii

 

PURCHASE
AND SALE AGREEMENT

 

THIS PURCHASE AND SALE AGREEMENT (the “Agreement”), made and
entered into this 3rd day of March, 2005, by and between U.S. RETAIL
INCOME FUND VIII-D, LIMITED PARTNERSHIP, a Delaware limited partnership (“Seller”),
and KRG DEVELOPMENT, LLC, an Indiana limited liability company (“Purchaser”).

 

W
I  T  N  E  S  E  T  H:

 

WHEREAS, Seller desires to sell certain improved real property commonly
known as “Plaza Volente Shopping Center” located in Austin, Texas (the “Shopping
Center”) together with certain related personal and intangible property, and
Purchaser desires to purchase such real, personal and intangible property; and

 

WHEREAS, the parties hereto desire to provide for said sale and
purchase on the terms and conditions set forth in this Agreement;

 

NOW, THEREFORE, for and in consideration of the premises, the mutual
covenants and agreements hereinafter set forth, and for other good and valuable
consideration, the receipt, adequacy, and sufficiency of which are hereby
acknowledged by the parties hereto, the parties hereto hereby covenant and
agree as follows:

 

ARTICLE 1.

DEFINITIONS

 

For purposes of this Agreement, each of the following capitalized terms
shall have the meaning ascribed to such terms as set forth below:

 

“Additional Earnest Money” shall mean the sum of Two Hundred
Twenty Five Thousand and No/100 Dollars ($225,000.00 U.S.).

 

“Ancillary Closing Documents” shall mean, collectively, the Assignment
and Assumption of Leases, the Assignment and Assumption of Operating
Agreements, the General Assignment, and the Seller’s Certificate.

 

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

 

“Assignment and Assumption of Operating Agreements” shall mean
the form of assignment and assumption of the Operating Agreements to be
executed and delivered by Seller and Purchaser at the Closing in the form
attached hereto as SCHEDULE 4.

 

“Bill of Sale” shall mean the form of bill of sale to the
Personal Property to be executed and delivered by Seller to Purchaser at the
Closing in the form attached hereto as SCHEDULE 3.

 

1

 

“Broker” shall have the meaning ascribed
thereto in Section 10.1 hereof.

 

“Business Day” shall mean any day other than a Saturday, Sunday
or other day on which banking institutions in the State of Georgia are
authorized by law or executive action to close.

 

“Closing” shall mean the consummation of the purchase and sale
of the Property pursuant to the terms of this Agreement.

 

“Closing Date” shall have the meaning ascribed thereto in Section 2.6
hereof.

 

“Commission Agreements” shall have the meaning ascribed thereto
in Section 4.1(f) hereof, and such agreements are more particularly
described on EXHIBIT “C” attached hereto
and made a part hereof.

 

“Due Diligence Material” shall have the meaning ascribed thereto
in Section 3.7 hereof.

 

“Earnest Money” shall mean the Initial Earnest Money, together
with any Additional Earnest Money actually paid by Purchaser to Escrow Agent hereunder,
and together with all interest which accrues thereon as provided in Section 2.3(c) hereof
and in the Escrow Agreement.

 

“Effective Date” shall mean the last date upon which the
following shall have occurred: (a) Purchaser and Seller shall have delivered
at least two (2) fully executed counterparts of this Agreement to the
other, (b) Purchaser, Seller and Escrow Agent shall have executed and
delivered at least one (1) fully executed counterpart of the Escrow
Agreement to each other party, and (c) Purchaser shall have delivered the
Initial Earnest Money (by federal wire transfer or delivery of Purchaser’s
check made payable to Escrow Agent) to Escrow Agent.

 

“Environmental Law” shall mean any law, ordinance, rule,
regulation, order, judgment, injunction or decree relating to pollution or
substances or materials which are considered to be hazardous or toxic,
including, without limitation, the Resource Conservation and Recovery Act, the
Comprehensive Environmental Response, Compensation and Liability Act, the
Hazardous Materials Transportation Act, the Clean Water Act, the Toxic
Substances Control Act, the Emergency Planning and Community Right to Know Act,
any state and local environmental law, all amendments and supplements to any of
the foregoing and all regulations and publications promulgated or issued
pursuant thereto.

 

“Escrow Agent” shall mean the Title Company, at its office at
Indianapolis, Indiana.

 

“Escrow Agreement”  shall
mean that certain Escrow Agreement in the form attached hereto as EXHIBIT “D” entered into contemporaneously with the
execution and delivery of this Agreement by Seller, Purchaser and Escrow Agent
with respect to the Earnest Money.

 

“Existing Environmental Reports” shall mean those certain
reports, correspondence and related materials, if any, more particularly
described on EXHIBIT “E” attached hereto
and made a part hereof.

 

2

 

“Existing Lender”  shall
have the meaning ascribed thereto in Section 6.2(e) hereof.

 

“Existing Loan”  shall
have the meaning ascribed thereto in Section 6.2(e) hereof.

 

 “Existing Survey” shall
mean that certain survey with respect to the Land and the Improvements prepared
by John T. Bilnoski, dated December 2, 2004 as Project No. 103-89.97
..

 

“FIRPTA Affidavit”  shall
mean the form of FIRPTA Affidavit to be executed and delivered by Seller to
Purchaser at Closing in the form attached hereto as SCHEDULE 8.

 

“First Title Notice” shall have the meaning ascribed thereto in Section 3.4
hereof.

 

“Fountain Oaks Contract” 
shall have the meaning ascribed thereto in Section 6.1(e) hereof.

 

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

 

“Hazardous Substances” shall mean any and all pollutants,
contaminants, toxic or hazardous wastes or any other substances that might pose
a hazard to health or safety, the removal of which may be required or the
generation, manufacture, refining, production, processing, treatment, storage,
handling, transportation, transfer, use, disposal, release, discharge,
spillage, seepage or filtration of which is or shall be restricted,
prohibited or penalized under any Environmental Law (including, without
limitation, lead paint, asbestos, urea formaldehyde foam insulation, petroleum
and polychlorinated biphenyls).

 

“Improvements” shall mean all buildings, structures and
improvements now or on the Closing Date situated on the Land, including without
limitation, all parking areas and facilities, improvements and fixtures located
on the Land.

 

“Initial Earnest Money” shall mean the sum of Two Hundred
Seventy Thousand and No/100 Dollars ($270,000.00 U.S.).

 

“Inspection Period” shall mean the period commencing on February 10,
2005 and expiring at 5:00 P.M. Eastern Standard Time on April 15,
2005.

 

“Intangible Property” shall mean all intangible property, if
any, owned by Seller and related to the Land and Improvements, including
without limitation, Seller’s rights and interests, if any, in and to the
following (to the extent assignable):  (i) the
name “Plaza Volente Shopping Center”, (ii) all assignable plans and
specifications and other architectural and engineering drawings for the Land
and Improvements; (iii) all assignable warranties or guaranties given or
made in respect of the Improvements or Personal Property; (iv) all
transferable consents, authorizations, variances or waivers, licenses, permits
and approvals from any governmental or quasi-governmental agency, department,
board, commission, bureau or other entity or instrumentality solely in respect
of the Land or Improvements; and (v) all of Seller’s right, title and
interest in and to all assignable Operating Agreements that Purchaser agrees to
assume (or is deemed to have agreed to assume).

 

3

 

“Land” shall mean that certain tract or parcel of real property
located in Travis and Williamson Counties, Texas which is more particularly
described on EXHIBIT “A” attached hereto
and made a part hereof, together with all rights, privileges and easements
appurtenant to said real property, and all right, title and interest of Seller,
if any, in and to any land lying in the bed of any street, road, alley or
right-of-way, open or closed, adjacent to or abutting the Land.

 

“Lease” and “Leases” shall mean all of the leases or
occupancy agreements affecting of Property, including: (i)  those in
effect on the Effective Date which are more particularly identified on EXHIBIT “F” attached hereto, and; (ii) any amended
or new leases entered into pursuant to Section 4.3(a) of this
Agreement, which as of the Closing affect all or any portion of the Land or
Improvements.

 

“Management Agreement” shall have the meaning ascribed thereto
in Section 4.1(f) hereof and is more particularly described on EXHIBIT “C” attached hereto and made a part hereof.

 

“Monetary Objection “ or “Monetary Objections” shall mean
(a) any mortgage, deed to secure debt, deed of trust or similar security
instrument encumbering all or any part of the Property, (b) any mechanic’s,
materialman’s or similar lien (unless resulting from any act or omission of
Purchaser or any of its agents, contractors, representatives or employees), (c) the
lien of ad valorem real or personal property taxes, assessments and
governmental charges affecting all or any portion of the Property which are due
and payable, and (d) any judgment of record against Seller in the county
or other applicable jurisdiction in which the Property is located.

 

“Operating Agreements” shall mean all those certain contracts
and agreements more particularly described on EXHIBIT “H”
attached hereto and made a part hereof relating to the repair,
maintenance or operation of the Land, Improvements or Personal Property which
will extend beyond the Closing Date, including, without limitation, all
equipment leases.

 

“Other Notices of Sale” shall have the meaning ascribed thereto
in Section 5.1(s) hereof.

 

“Permitted Exceptions” shall mean, collectively, (a) liens
for taxes, assessments and governmental charges not yet due and payable or due
and payable but not yet delinquent, (b) the Leases, and (c) such
other easements, restrictions and encumbrances that do not constitute Monetary
Objections and which Purchaser has not objected to, in writing, prior to the
expiration of the Inspection Period.

 

“Personal Property” shall mean all furniture (including common
area furnishings and interior landscaping items), carpeting, draperies,
appliances, personal property (excluding any computer software which either is
licensed to Seller or Seller deems proprietary), machinery, apparatus and
equipment owned by Seller and currently used exclusively in the operation,
repair and maintenance of the Land and Improvements and situated thereon, as
generally described on EXHIBIT “B”
attached hereto and made a part hereof, and all books, records and files
(excluding any appraisals, budgets, strategic plans for the Property, internal
analyses, information regarding the marketing of the Property for sale,
submissions relating to Seller’s obtaining of corporate or partnership
authorization, attorney and accountant work product, attorney-client privileged

 

4

 

documents, or
other information in the possession or control of Seller or Seller’s property
manager which Seller deems proprietary) relating to the Land and
Improvements.  The Personal Property does
not include any property owned by
tenants, contractors or licensees, and shall be conveyed by Seller to Purchaser
subject to depletions, replacements and additions in the ordinary course of
Seller’s business.

 

“Property”  shall have the
meaning ascribed thereto in Section 2.1 hereof.

 

“Purchase Price” shall be the amount specified
in Section 2.4 hereof.

 

“Purchaser’s Certificate” shall have the meaning ascribed
thereto in Section 5.2(d) hereof.

 

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

 

“Security Deposits” shall mean any security deposits, rent or
damage deposits, or similar amounts (other than rent paid for the month in
which the Closing occurs) which the Tenants are required to deposit with Seller
pursuant to the Leases (except to the extent that a Tenant may agree in a
Tenant Estoppel Certificate that a security deposit was required under their
lease but not deposited, in whole or part.)

 

“Seller’s Affidavit” shall mean the form of owner’s affidavit to
be given by Seller at Closing to the Title Company in the form attached hereto
as SCHEDULE 6, provided that it is
sufficient to cause the Title Company to delete the standard exceptions to the
final title policy issued from the Title Commitment.

 

“Seller’s Certificate” shall mean the form of certificate to be
executed and delivered by Seller to Purchaser at the Closing with respect to
the truth and accuracy of Seller’s warranties and representations contained in
this Agreement (modified and updated as the circumstances require), in the form
attached hereto as SCHEDULE 7.

 

“Seller’s Estoppel” shall mean the form of estoppel that may be
executed and delivered by Seller at Closing in substantially the form attached
hereto as SCHEDULE 11, as contemplated in Section 6.1(d) hereof.

 

“Survey” and “Surveys” shall have the meaning ascribed
thereto in Section 3.4 hereof.

 

“Taxes” shall have the meaning ascribed thereto
in Section 5.4(a) hereof.

 

“Tenant Estoppel Certificate” or “Tenant Estoppel
Certificates” shall mean certificates to be sought from the tenants under
the Leases in substantially the form attached hereto as EXHIBIT ”I”;
provided, however, if any Lease provides for the form or content of an estoppel
certificate from the tenant thereunder, the Tenant Estoppel Certificate with
respect to such Lease may be in the form as called for therein.

 

“Tenant Inducement Costs” shall mean any out-of-pocket payments
required under a Lease to be paid by the landlord thereunder to or for the
benefit of the tenant thereunder which is

 

5

 

in the nature of a
tenant inducement, including specifically, but without limitation, tenant
improvement costs, lease buyout payments, and moving, design, refurbishment and
club membership allowances and costs. 
The term “Tenant Inducement Costs” shall not
include loss of income resulting from any free rental period, it being
understood and agreed that Seller shall bear the loss resulting from any free rental
period until the Closing Date and that Purchaser shall bear such loss from and
after the Closing Date.

 

“Tenant Notices of Sale” shall have the meaning ascribed thereto
in Section 5.1(r) hereof.

 

“Title Company” shall mean Chicago Title
Insurance Company.

 

“Title Commitment” shall have the meaning ascribed thereto in Section 3.4
hereof.

 

“Warranty Deed” shall mean the forms of deeds attached hereto as
SCHEDULE 1.

 

ARTICLE 2.

PURCHASE AND SALE

 

2.1.         Agreement to
Sell and Purchase. 
Subject to and in accordance with the terms and provisions of this
Agreement, Seller agrees to sell and Purchaser agrees to purchase, the
following property (collectively, the “Property”):

 

(a)           the Land;

 

(b)           the Improvements;

 

(c)                                  all of Seller’s
right, title and interest in and to the Leases, any guaranties of the Leases
and the Security Deposits;

 

(d)           the Personal
Property; and

 

(e)           the Intangible
Property.

 

2.2.         Permitted
Exceptions.  The Property
shall be conveyed subject to the matters which are, or are deemed to be, Permitted
Exceptions.

 

2.3.         Earnest Money.

 

(a)           Within three (3) business days after Purchaser’s
execution and delivery of this Agreement, Purchaser shall deliver the Initial
Earnest Money to Escrow Agent by federal wire transfer or by Purchaser’s check,
payable to Escrow Agent, which Initial Earnest Money shall be held and released
by Escrow Agent in accordance with the terms of the Escrow Agreement.

 

(b)           Within three (3) business days after the last day of
the Inspection Period, Purchaser shall deposit the Additional Earnest Money
with Escrow Agent.  The parties hereto
mutually acknowledge and agree that time is of the essence in respect of
Purchaser’s timely deposit of the Additional Earnest Money with Escrow Agent
and that if Purchaser fails to deposit

 

6

 

the Additional
Earnest Money with Escrow Agent in the time period set forth above, this
Agreement shall terminate, and Escrow Agent shall return the Initial Earnest
Money to Purchaser, and neither party hereto shall have any further rights or
obligations hereunder, except those provisions of this Agreement which by their
express terms survive the termination of this Agreement.

 

(c)           The Earnest Money shall be applied to the Purchase Price
at the Closing and shall otherwise be held, refunded, or disbursed in
accordance with the terms of the Escrow Agreement and this Agreement. All
interest and other income from time to time earned on the Initial Earnest Money
and the Additional Earnest Money shall be earned for the account of Purchaser,
and shall be a part of the Earnest Money; and the Earnest Money hereunder shall
be comprised of the Initial Earnest Money, the Additional Earnest Money and all
such interest and other income.

 

2.4.         Purchase Price.
Subject to adjustment and credits as otherwise specified in this Section 2.4
and elsewhere in this Agreement, the purchase price (the “Purchase Price”)
to be paid by Purchaser to Seller for the Property shall be Thirty Five Million
Seven Hundred Fifty Thousand and No/100 Dollars ($35,750,000 U.S.).  The Purchase Price shall be paid by Purchaser
to Seller at the Closing as follows:

 

(a)           The Earnest Money
shall be paid by Escrow Agent to Seller at Closing; and

 

(b)           An amount equal to
the Purchase Price, less the Earnest Money, shall be paid by Purchaser to
Seller at the Closing by wire transfer of immediately available federal funds
to an account designated by Seller, subject to prorations, adjustments and
credits as otherwise specified in this Agreement.

 

2.5.         Independent Contract
Consideration. In addition to, and not in lieu of the delivery
to Escrow Agent of the Initial Earnest Money, Purchaser shall deliver to
Seller, concurrently with Purchaser’s execution and delivery of this Agreement
to Seller, Purchaser’s check, payable to the order to Seller, in the amount of
One Hundred and No/100 Dollars ($100.00). 
Seller and Purchaser hereby mutually acknowledge and agree that said sum
represents adequate bargained for consideration for Seller’s execution and
delivery of this Agreement and Purchaser’s right to inspect the Property
pursuant to Article III.  Said sum
is in addition to and independent of any other consideration or payment
provided for in this Agreement and is nonrefundable in all events.

 

2.6.         Closing.
The consummation of the sale by Seller and purchase by Purchaser of the
Property (the “Closing”) shall be conducted by depositing the closing
deliveries set forth in Article 5 hereof with the Escrow Agent on or
before the date which is the later to occur of (a) thirty (30) days
following the end of the Inspection Period, or (b) such date on which the
Existing Lender has consented to Purchaser’s assumption of the Existing Loan,
provided, however, that in the event that the Existing Lender has not consented
to Purchaser’s assumption of the Existing Loan within sixty (60) days after the
expiration of the Inspection Period, Seller may terminate this Agreement by
providing written notice to the Purchaser, and, so long as Existing Lender’s
failure or refusal to approve Purchaser’s assumption of the Existing Loan does

 

7

 

not result from
Purchaser’s violation of the covenant set forth in Section 4.5 of the
Fountain Oaks Contract, Purchaser shall receive a return of the Earnest Money.

 

ARTICLE 3.

PURCHASER’S
INSPECTION AND REVIEW RIGHTS

 

3.1.         Due Diligence Inspections.

 

(a)           From and after the Effective Date until the Closing Date
or earlier termination of this Agreement, Seller shall permit Purchaser and its
authorized representatives to inspect the Property to perform due diligence,
soil analysis and environmental investigations, to examine the records of
Seller with respect to the Property, and make copies thereof, at such times
during normal business hours as Purchaser or its representatives may
request.  All such inspections shall be
nondestructive in nature, and specifically shall not include any physically
intrusive testing.  All such inspections
shall be performed in such a manner to minimize any interference with the
business of the tenants under the Leases at the Property and, in each case, in
compliance with Seller’s rights and obligations as landlord under the
Leases.  All inspection fees, appraisal
fees, engineering fees and all other costs and expenses of any kind incurred by
Purchaser relating to the inspection of the Property shall be solely Purchaser’s
expense.  Seller reserves the right to
have a representative present at the time of making any such inspection.  Purchaser shall notify Seller not less than
one (1) Business Day in advance of making any such inspection.

 

(b)           If the Closing is not consummated hereunder, Purchaser
shall promptly (and as a condition to the refund of the Earnest Money) deliver
copies of all reports, surveys and other information furnished to Purchaser by
third parties in connection with such inspections to Seller; provided, however,
that delivery of such copies and information shall be without warranty or
representation whatsoever, express or implied, including, without limitation,
any warranty or representation as to ownership, accuracy, adequacy or
completeness thereof or otherwise.  This Section 3.1(b) shall
survive the termination of this Agreement.

 

(c)           To the extent that Purchaser or any of its
representatives, agents or contractors damages or disturbs the Property or any
portion thereof, Purchaser shall return the same to substantially the same
condition which existed immediately prior to such damage or disturbance.  Purchaser hereby agrees to and shall
indemnify, defend and hold harmless Seller from and against any and all
expense, loss or damage which Seller may incur (including, without limitation,
reasonable attorney’s fees actually incurred) as a result of any act or
omission of Purchaser or its representatives, agents or contractors, other than
any expense, loss or damage to the extent arising from any act or omission of
Seller during any such inspection and other than any expense, loss or damage
resulting from the discovery or release of any Hazardous Substances at the
Property (other than Hazardous Substances brought on to the Property by
Purchaser or its representatives, agents or contractors, or any release of
Hazardous Substances resulting from the negligence of Purchaser or its
representatives, agents or contractors). 
Said indemnification agreement shall survive the Closing and any earlier
termination of this Agreement. Purchaser shall maintain and shall ensure that
Purchaser’s consultants and contractors maintain commercial general liability
insurance in an amount not less than $1,000,000, combined single limit, and in
form and substance adequate to insure against all

 

8

 

liability of
Purchaser and its consultants and contractors, respectively, and each of their
respective agents, employees and contractors, arising out of inspections and
testing of the Property or any part thereof made on Purchaser’s behalf.  Purchaser agrees to provide to Seller a
certificate of insurance with regard to each applicable liability insurance
policy prior to any entry upon the Property by Purchaser or its consultants or
contractors, as the case may be, pursuant to this Section 3.1.

 

3.2.          Seller’s Deliveries to
Purchaser; Purchaser’s Access to Seller’s Property Records.

 

(a)           Purchaser acknowledges receipt of the documents listed on Exhibit L,
attached hereto and made a part hereof and Purchaser further acknowledges that
no additional items are required to be delivered by Seller to Purchaser except
for the following, or as otherwise set forth elsewhere in this Agreement:

 

(i)                                     Copies of current
Property tax bills and assessor’s statements of current assessed value.

 

(ii)                                  Copies
of Property operating statements for the past 24 months.

 

(iii)                               Copies
of utility bills for the Properties (to the extent Seller is billed) for the
past six (6) months.

 

(iii)                               2005 Operating Budget
with respect to the Properties.

 

(iv)                              Copies of all Leases,
guarantees, any amendments and letter agreements relating thereto existing as
of the Effective Date.

 

(v)                                 An aged tenant
receivable report, if any, regarding income from the tenants.

 

(vi)                              Most recent monthly
tenant, tax and CAM billing statements and year end operating expense
reconciliations and general ledger for the past 24 months.

 

(vii)                           All Operating Agreements
currently in place at the Properties.

 

(viii)                        A copy of
Seller’s (or its affiliate’s) current policies of title insurance with respect
to the Land and Improvements, including, if available, copies of all Schedule B-2
exception documents.

 

(ix)                                A
copy of the Existing Survey.

 

(b)                                 From
the Effective Date until the Closing Date or earlier termination of this
Agreement, Seller shall allow Purchaser and Purchaser’s representatives, on

 

9

 

reasonable advance notice
and during normal business hours, to have access to Seller’s existing books,
records and files relating to the Property at Seller’s office at 3350 Riverwood
Parkway, Suite 1500, Atlanta, Georgia 30339, for the purpose of inspecting
and (at Purchaser’s expense) copying the same, including, without limitation,
the materials listed below (to the extent any or all of the same are in Seller’s
possession), subject, however, to the limitations of any confidentiality or
nondisclosure agreement to which Seller may be bound, and provided that Seller
shall not be required to deliver or make available to Purchaser any appraisals,
strategic plans for the Property, internal analyses, information regarding the
marketing of the Property for sale, submissions relating to Seller’s obtaining
of corporate authorization, attorney and accountant work product, or
attorney-client privileged documents. 
Purchaser acknowledges and agrees, however, that Seller makes no
representation or warranty of any nature whatsoever, express or implied, with
respect to the ownership (except with respect to the Leases), enforceability,
accuracy (only with respect to third party reports), adequacy or completeness
(except with respect to the Leases and Operating Agreements) or otherwise of
any of such records, evaluations, data, investigations, reports, cost estimates
or other materials.  If the Closing
contemplated hereunder fails to take place for any reason, Purchaser shall
promptly (and as a condition to the refund of the Earnest Money) return all
copies of materials copied from Seller’s books, records and files relating to
the Property.  It is understood and
agreed that Seller shall have no obligation to obtain, commission or prepare
any such books, records, files, reports or studies not now in Seller’s
possession.  Subject to the foregoing,
Seller agrees to make available to Purchaser for inspection and copying,
without limitation, the following books, records and files relating to the
Property, all to the extent the same are in Seller’s possession:

 

(i)                                     Tenant Information.  Copies of the Leases, guarantees, any
amendments, or letter agreements, and any financial statements or other
financial information of any tenants under the Leases (and the Lease
guarantors, if any), written information relative to the tenants’ payment
histories, and tenant correspondence, to the extent Seller has the same in its
possession;

 

(ii)                                  Commission
Agreements.  Copies of the Commission
Agreements;

 

(iii)                               Plans.  All available construction plans and
specifications in Seller’s possession relating to the development, condition,
repair and maintenance of the Property, the Improvements and the Personal
Property;

 

(iv)                              Reports.  Copies of all third party analyses,
compilations, data, studies, reports, or other information or documents
relating to the physical and/or environmental condition of the Property and/or
the Improvements, if any;

 

(v)                                 Permits;
Licenses.  Copies of any permits,
licenses, or other similar documents in Seller’s possession relating to the
use, occupancy or operation of the Property; and

 

10

 

(vi)                              Operating
Costs and Expenses.  All available
records of any operating costs and expenses for the Property in Seller’s
possession.

 

3.3.         Condition
of the Property.

 

(a)           Seller recommends that Purchaser employ one or more
independent engineering and/or environmental professionals to perform
engineering, environmental and physical assessments on Purchaser’s behalf in
respect of the Property and the condition thereof.  Purchaser and Seller mutually acknowledge and
agree that the Property is being sold in an “AS IS” condition and “WITH ALL
FAULTS,” known or unknown, contingent or existing.  Purchaser has the sole responsibility to
fully inspect the Property, to investigate all matters relevant thereto,
including, without limitation, the condition of the Property, and to reach its
own, independent evaluation of any risks (environmental or otherwise) or
rewards associated with the ownership, leasing, management and operation of the
Property.

 

(b)           To the fullest extent permitted by law, Purchaser does
hereby unconditionally waive and release Seller, and its partners, beneficial
owners, officers, directors, shareholders and employees from any present or
future claims and liabilities of any nature arising from or relating to the
presence or alleged presence of Hazardous Substances in, on, at, from, under or
about the Property or any adjacent property, including, without limitation, any
claims under or on account of any Environmental Law, regardless of whether such
Hazardous Substances are located in, on, at, from, under or about the Property
or any adjacent property prior to or after the date hereof, unless such claims
or liabilities arise from the negligent or fraudulent activity of Seller, or
activity of Seller in violation of any Environmental Law.  In addition, Purchaser does hereby covenant
and agree to defend, indemnify, and hold harmless Seller and its partners,
beneficial owners, officers, directors, shareholders and employees from and
against any claims, demands, penalties, fines, liabilities, settlements,
damages, costs or expenses of whatever kind or nature, known or unknown,
existing and future, including any action or proceeding brought or threatened,
or ordered by governmental authorities, relating to any Hazardous Substances
which may be placed or located on the Property after the date of Closing,
unless such claims or liabilities arise from Seller’s acts or omissions.  The terms and provisions of this paragraph
shall survive the Closing hereunder.

 

3.4.         Title and Survey.  Promptly upon execution of this Agreement,
Purchaser may order at its expense, from the Title Company a preliminary title
commitment with respect to the Property (the “Title Commitment”).  Purchaser shall direct the Title Company to
send a copy of the Title Commitment to Seller. 
Promptly upon execution of this Agreement, Purchaser may arrange, also
at its expense, for the preparation of one or more updates of the Existing
Survey (each and together, the “Survey”).  Purchaser likewise shall make copies of any
such Survey available to Seller prior to Closing.  Purchaser shall have until the end of the
Inspection Period to give written notice (the “First Title Notice”) to
Seller of such objections as Purchaser may have to any exceptions to title
disclosed in the Title Commitment or in any Survey or otherwise in Purchaser’s
examination of title.  From time to time
at any time after the First Title Notice and prior to the Closing Date,
Purchaser may give written notice of exceptions to title first appearing of
record after the effective date of any updated title commitment or matters of
survey which would not have been disclosed by an accurate updated examination
of title or preparation of an

 

11

 

updated ALTA
survey prior to date of the initial Title Commitment or the initial
Survey.  Seller shall have the right, but
not the obligation (except as to Monetary Objections), to attempt to remove,
satisfy or otherwise cure any exceptions to title to which the Purchaser so
objects.  Within five (5) Business
Days after receipt of Purchaser’s First Title Notice, Seller shall give written
notice to Purchaser informing the Purchaser of Seller’s election with respect
to such objections.  If Seller fails to
give written notice of election within such five (5) Business Day period,
Seller shall be deemed to have elected not to attempt to cure the objections
(other than Monetary Objections).  If
Seller elects to attempt to cure any objections, Seller shall be entitled to
one or more reasonable adjournments of the Closing of up to but not beyond the
thirtieth (30th) day following the initial date set for the Closing to attempt
such cure, but, except for Monetary Objections, Seller shall not be obligated to
expend any sums, commence any suits or take any other action to effect such
cure.  Except as to Monetary Objections,
if Seller elects, or is deemed to have elected, not to cure any exceptions to
title to which Purchaser has objected or if, after electing to attempt to cure,
Seller determines that it is unwilling or unable to remove, satisfy or
otherwise cure any such exceptions, Purchaser’s sole remedy hereunder in such
event shall be either (i) to accept title to the Property subject to such
exceptions as if Purchaser had not objected thereto and without reduction of
the Purchase Price, (ii) if such exceptions are matters first appearing of
record after the date of this Agreement, and arise by, through or under Seller,
to terminate this Agreement, or (iii) to terminate this Agreement within
three (3) Business Days after receipt of written notice from Seller either
of Seller’s election not to attempt to cure any objection or of Seller’s
determination, having previously elected to attempt to cure, that Seller is
unable or unwilling to do so, or three (3) Business Days after Seller is
deemed hereunder to have elected not to attempt to cure such objections (and
upon any such termination under clause (ii) or (iii) above, Escrow
Agent shall return the Earnest Money to Purchaser).  Notwithstanding the above, if such exceptions
mentioned in clause (ii) above were entered into by Seller after the
Effective Date hereof and Purchaser elects to proceed to Closing, Seller shall
have the affirmative obligation to cure such exceptions before Closing and
Purchaser shall not take subject to them. 
Notwithstanding anything to the contrary contained elsewhere in this
Agreement, Seller shall be obligated to cure or satisfy all Monetary Objections
at or prior to Closing, and may use the proceeds of the Purchase Price at
Closing for such purpose.

 

3.5.         Operating
Agreements.  Seller,
without cost to Purchaser, shall terminate at Closing all Operating Agreements
to the extent any relates to the Property, except for those Operating Agreements,
if any, that Purchaser agrees, prior to Closing, to assume.

 

3.6.         Termination of
Agreement.  Purchaser
shall have until the expiration of the Inspection Period to determine, in
Purchaser’s sole opinion and discretion, the suitability of the Property for
acquisition by Purchaser or Purchaser’s permitted assignee.  Purchaser shall have the right to terminate
this Agreement at any time on or before said time and date of expiration of the
Inspection Period by giving written notice to Seller of such election to
terminate.  If Purchaser so elects to
terminate this Agreement pursuant to this Section 3.6, Escrow Agent shall
pay the Initial Earnest Money to Purchaser, whereupon, except for those
provisions of this Agreement which by their express terms survive the
termination of this Agreement, no party hereto shall have any other or further
rights or obligations under this Agreement. 
Any termination of this Agreement shall constitute an automatic
termination of the Related Agreements (defined in Section 6.2(e) hereof).  If Purchaser fails to so terminate this
Agreement

 

12

 

prior to the
expiration of the Inspection Period, Purchaser shall have no further right to
terminate this Agreement pursuant to this Section 3.6.

 

3.7.         Confidentiality.  All information acquired by Purchaser or any
of its designated representatives (including by way of example, but not in
limitation, the officers, directors, shareholders and employees of Purchaser,
and Purchaser’s engineers, consultants, counsel and potential lenders, and the
officers, directors, shareholders and employees of each of them) with respect
to the Property, whether delivered by Seller or any of Seller’s representatives
or obtained by Purchaser as a result of its inspection and investigation of the
Property, examination of Seller’s books, records and files in respect of the
Property, or otherwise (collectively, the “Due Diligence Material”)
shall be used solely for the purpose of determining whether the Property is suitable
for Purchaser’s acquisition and ownership thereof and for no other purpose
whatsoever.  The terms and conditions
which are contained in this Agreement and all Due Diligence Material which is
not published as public knowledge or which is not generally available in the
public domain shall be kept in strict confidence by Purchaser and shall not be
disclosed to any individual or entity other than to those authorized
representatives of Purchaser who need to know the information for the purpose
of assisting Purchaser in evaluating the Property for Purchaser’s potential
acquisition thereof; provided however, that Purchaser shall have the right to
disclose any such information if required by applicable law or as may be
necessary in connection with any court action or proceeding with respect to
this Agreement.  Purchaser shall and
hereby agrees to indemnify and hold Seller harmless from and against any and
all loss, liability, cost, damage or expense that Seller may suffer or incur
(including, without limitation, reasonable attorneys’ fees actually incurred)
as a result of the unpermitted disclosure or use of any of the Due Diligence
Material to any individual or entity other than an appropriate representative
of Purchaser and/or the use of any Due Diligence Material for any purpose other
than as herein contemplated and permitted. 
If Purchaser elects to terminate this Agreement pursuant to any
provision hereof permitting such termination, or if the Closing contemplated
hereunder fails to occur for any reason, Purchaser will promptly return to
Seller all Due Diligence Material in the possession of Purchaser and any of its
representatives, and destroy all copies, notes or abstracts or extracts
thereof, as well as all copies of any analyses, compilations, studies or other
documents prepared by Purchaser or for its use (whether in written or
electronic form) containing or reflecting any Due Diligence Material.  In the event of a breach or threatened breach
by Purchaser or any of its representatives of this Section 3.7, Seller
shall be entitled, in addition to other available remedies, to an injunction
restraining Purchaser or its representatives from disclosing, in whole or in
part, any of the Due Diligence Material and any of the terms and conditions of
this Agreement.  Nothing contained herein
shall be construed as prohibiting or limiting Seller from pursuing any other
available remedy, in law or in equity, for such breach or threatened
breach.  The provisions of this Section shall
survive the termination of this Agreement, unless the Closing occurs.  Notwithstanding the foregoing, Seller
acknowledges that Purchaser is a real estate investment trust subject to
regulation by the Securities and Exchange Commission (the “SEC”) and hereby
gives Purchase permission to file such disclosures as its attorneys or auditors
advise it to file with the SEC upon entering into the Agreement and upon
Closing, including a copy of the Agreement itself with the SEC.

 

13

 

ARTICLE 4.

REPRESENTATIONS,
WARRANTIES AND OTHER AGREEMENTS

 

4.1.         Representations
and Warranties of Seller. 
Seller hereby makes the following representations and warranties to
Purchaser:

 

(a)           Organization, Authorization and Consents.  Seller is a duly organized and validly existing
limited partnership under the laws of the State of Delaware.  Seller has the right, power and authority to
enter into this Agreement and to convey the Property in accordance with the
terms and conditions of this Agreement, to engage in the transactions
contemplated in this Agreement and to perform and observe the terms and
provisions hereof.

 

(b)           Action of Seller, Etc. Seller has taken all
necessary action to authorize the execution, delivery and performance of this
Agreement, and upon the execution and delivery of any document to be delivered
by Seller on or prior to the Closing, this Agreement and such document shall
constitute the valid and binding obligation and agreement of Seller,
enforceable against Seller in accordance with its terms, except as
enforceability may be limited by bankruptcy, insolvency, reorganization,
moratorium or similar laws of general application affecting the rights and
remedies of creditors.

 

(c)           No Violations of Agreements.  Neither the execution, delivery or
performance of this Agreement by Seller, nor compliance with the terms and
provisions hereof, will result in any breach of the terms, conditions or
provisions of, or conflict with or constitute a default under, or result in the
creation of any lien, charge or encumbrance upon the Property or any portion
thereof pursuant to the terms of any indenture, deed to secure debt, mortgage,
deed of trust, note, evidence of indebtedness or any other agreement or
instrument by which Seller is bound.

 

(d)           Litigation. 
To Seller’s knowledge, Seller has received no written notice that any
investigation, action or proceeding is pending or threatened, which (i) if
determined adversely to Seller, materially and adversely affects the use or
value of the Property, or (ii) questions the validity of this Agreement or
any action taken or to be taken pursuant hereto, or (iii) involves
condemnation or eminent domain proceedings involving the Property or any
portion thereof.

 

(e)           Existing Leases. 
There are no leases, licenses, or other occupancy agreements affecting
any portion of the Property other than the Leases identified on Exhibit F.  There are no lease term letters or leases
delivered for execution to prospective tenants of the Property except for
prospective lease transactions that, although at one time actively pursued, are
not currently being pursued by Seller. 
The information contained in Exhibit F
is true and correct.  The copies of the
Leases furnished by the Seller to the Purchaser are true and complete
copies.  Other than items included in
Seller’s lease files which Seller has made available to Purchaser, Seller has
executed no side letters or other understandings concerning the Leases.  The Leases are in full force and effect,
without any material default by the Seller or, to Seller’s knowledge, by any
tenant thereunder.  Except as set forth
in Exhibit F All tenants required
to pay rent or additional rent as of the Effective Date have paid such sums in
full without set-off or counterclaim. 
Seller has not given or received any notice of default which remains
uncured or unsatisfied with respect to any of the Leases.  Seller has not granted to any tenant under a
Lease or any other person or entity an option, right of first refusal, or right
to purchase the Property or any part thereof or interest therein which is not
contained in a recorded document listed as a Permitted Exception or

 

14

 

in a Lease.  All Security Deposits are set forth on Exhibit F.  There are no Tenant Inducement Costs other
than as set forth in Exhibit K.

 

(f)            Leasing Commissions.  To Seller’s knowledge, (i) there are no
lease brokerage agreements, leasing commission agreements or other agreements
providing for payments of any amounts for leasing activities or procuring tenants
with respect to the Property or any portion or portions thereof other than as
disclosed in EXHIBIT “C” attached hereto
(the “Commission Agreements”), and (ii) there are no agreements
currently in effect relating to the management and leasing of the Property
other than as disclosed on said EXHIBIT “C”
(the “Management Agreement”); and that all leasing commissions,
brokerage fees and management fees accrued or due and payable under the
Commission Agreements and the Management Agreement, as of the date hereof and
at the Closing have been or shall be paid in full; and that Seller shall
deliver termination notices with regard to the Management Agreement at Closing
(unless Purchaser elects to assume such Management Agreement) at no cost to
Purchaser.  Notwithstanding anything to
the contrary contained herein, Purchaser shall be responsible for the payment
of all leasing commissions payable for (A) any new leases entered into
after the Effective Date that have been approved (or deemed approved) by
Purchaser, and (B) the renewal, expansion or extension of any Leases
existing as of the Effective Date and exercised or effected after the Effective
Date, and Purchaser shall pay to the manager under the Management Agreement
leasing commissions with respect to leases entered into (or expansions,
renewals or extensions effected) by Purchaser within thirty (30) days after the
Closing Date with the tenants or prospective tenants listed in item IV of EXHIBIT “C” hereto and approved by Purchaser.

 

(g)           Taxes and Assessments.  Except as may be set forth on EXHIBIT “J” attached hereto and made a part hereof,
Seller has not filed, and has not retained anyone to file, notices of protests
against, or to commence action to review, real property tax assessments against
the Property.  To Seller’s actual
knowledge, there are no performance, payment, maintenance, or other bonds
outstanding or due to be posted to any state or local government respecting the
development or operation of the Property or the roads or utilities serving the same.  To Seller’s actual knowledge, all
assessments, impact fees, or other similar state or local financial obligations
have been paid in full and Seller is unaware of any other such obligations
pending or threatened with respect to the Property.

 

(h)           Environmental Matters.  Except as may be set forth in the Existing
Environmental Reports or as otherwise disclosed on Exhibit E:
(i) Seller has not engaged in the generation, use, manufacture, treatment,
storage, or disposal of any Hazardous Substance on the Property in violation of
any Environmental Law, as hereinafter defined; (ii) Seller has not
received written notification that any governmental or quasi-governmental
authority that there are any violations of any Environmental Law with respect
to the Property, nor has Seller received any written notice that any
governmental or quasi-governmental authority is contemplating an investigation
of the Property, with respect to a violation or suspected violation of any
Environmental Law, (iii) and Seller has not received written notice that
any third party has engaged in the generation, use, manufacture, treatment,
storage, or disposal of any Hazardous Substance on the Property in violation of
any Environmental Law.

 

15

 

(i)            Compliance with Laws.  There are no pending lawsuits against Seller
with regard to the construction, development, use, or operation of the
Property.  To Seller’s actual knowledge,
and except as set forth on EXHIBIT “G”,
there are no actions, suits, or proceedings before any court or governmental
authority, affecting the Property or which may affect Seller’s ability to
perform its obligations under this Agreement, nor has Seller received an
express written threat of litigation with regard to the Property within the
last ninety (90) days.

 

(j)            Easements and Other Agreements.  To Seller’s knowledge, Seller has not
received any written notice of Seller’s default in complying with the terms and
provisions of any of the covenants, conditions, restrictions or easements
constituting a Permitted Exception.

 

(k)           Other Agreements. 
To Seller’s knowledge, except for the Leases, the Commission Agreements,
the Management Agreement and the Permitted Exceptions, there are no leases,
Operating Agreements, management agreements, brokerage agreements, leasing
agreements or other agreements or instruments in force or effect that grant to
any person or any entity any right, title, interest or benefit in and to all or
any part of the Property or any rights relating to the use, operation,
management, maintenance or repair of all or any part of the Property which will
survive the Closing or be binding upon Purchaser other than those which
Purchaser has agreed in writing to assume prior to the expiration of the
Inspection Period.  There are no material
defaults by Seller under the agreements referred to in this subsection (k)
and, to Seller’s knowledge, there are no material defaults by any other party
to such agreements.

 

(l)            Seller Not a Foreign Person.  Seller is not a “foreign person” which would
subject Purchaser to the withholding tax provisions of Section 1445 of the
Internal Revenue Code of 1986, as amended.

 

(m)          Condemnation. 
Except as set forth in Schedule 4.1(m) Seller has received no
written notice of the commencement of any proceedings for taking by
condemnation or eminent domain of any part of the Property, nor does Seller
have any actual knowledge of threatened proceedings for taking by condemnation
or eminent domain of any part of the Property.

 

(n)           Employees. 
Seller has no employees to whom by virtue of such employment Purchaser
will have any obligation after the Closing.

 

(o)           Property
Information.  All contracts,
guarantees, warranties, and all other books, records, contracts or other like
documentation delivered to Purchaser by Seller pursuant to this Agreement or in
connection with the execution hereof are accurate, true, correct, and complete
copies of Seller’s copies of those materials.

 

(p)           Mechanic’s
Liens.  To Seller’s knowledge, other
than as set forth in the Title Commitments, there are no mechanic’s liens or
any matters or disputes as of the Closing Date which, if such matters and
disputes are not resolved on or before the Closing Date, could ripen into
mechanic’s liens relating to the Property.

 

(q)           Zoning.  The Property is properly zoned for its
present use and, to Seller’s knowledge, there presently exist no violations of
any applicable zoning ordinance, covenants, commitments, conditions or
restrictions.

 

16

 

(r)            Utilities
and Access.  The Property has
adequate and permanent legal access to water and electrical supply, storm, and
sanitary sewage facilities, other required public utilities (with respect to
each of the aforementioned items, by means of either a direct connection to the
source of such utilities or through connections available on publicly dedicated
roadways directly abutting the Property), parking, and means of access between
the Property and public highways and roads over recognized curb cuts for each
Property’s current use.

 

Seller acknowledges that Purchaser is relying on the representations
and warranties made by Seller in this Section 4.1.  The representations and warranties made in
this Agreement by Seller shall be continuing and shall be deemed remade by
Seller as of the Closing Date, with the same force and effect as if made on,
and as of, such date, subject to Seller’s right to update such representations
and warranties by written notice to Purchaser and in Seller’s certificate to be
delivered pursuant to Section 5.1(i) hereof.  All representations and warranties made in
this Agreement by Seller shall survive the Closing for a period of one (1) year,
and upon expiration thereof shall be of no further force or effect except to
the extent that with respect to any particular alleged breach, Purchaser gives
Seller written notice prior to the expiration of said one (1) year period
of such alleged breach with reasonable detail as to the nature of such breach
and files an action against Seller with respect thereto within ninety (90) days
after the giving of such notice.

 

Notwithstanding anything to the contrary contained in this Section 4.1,
in no event shall Seller’s total liability for any breach or breaches of the
representations or warranties made in this Agreement exceed, in the aggregate,
Seven Hundred and Fifty Thousand and No/100 Dollars ($750,000 US).  In no event shall Seller be liable for, nor
shall Purchaser seek, any consequential, indirect or punitive damages; and in
no event shall any claim for a breach of any representation or warranty of
Seller be actionable or payable if the breach in question results from or is
based on a condition, state of facts or other matter which was known to
Purchaser prior to the Closing or which was contained in the materials set
forth on Exhibit L.

 

Except as otherwise expressly provided in this Section 4.1 or this
Agreement or in any documents to be executed and delivered by Seller to
Purchaser at the Closing, Seller has not made, and Purchaser has not relied on,
any information, promise, representation or warranty, express or implied,
regarding the Property, whether made by Seller, on Seller’s behalf or
otherwise, including, without limitation, the physical condition of the
Property, the financial condition of the tenants under the Leases, title to or
the boundaries of the Property, pest control matters, soil conditions, the
presence, existence or absence of hazardous wastes, toxic substances or other
environmental matters, compliance with building, health, safety, land use and
zoning laws, regulations and orders, structural and other engineering
characteristics, traffic patterns, market data, economic conditions or
projections, past or future economic performance of the tenants or the
Property, and any other information pertaining to the Property or the market
and physical environments in which the Property is located.  Purchaser acknowledges (i) that
Purchaser has entered into this Agreement with the intention of making and
relying upon its own investigation or that of Purchaser’s own consultants and
representatives with respect to the physical, environmental, economic and legal
condition of the Property and (ii) that Purchaser is not relying upon any
statements, representations or warranties of any kind, other than those
specifically set forth in this Section 4.1 or elsewhere in this Agreement
or in any document to be

 

17

 

executed and
delivered by Seller to Purchaser at the Closing, made (or purported to be made)
by Seller or anyone acting or claiming to act on Seller’s behalf.  Purchaser has inspected or shall inspect the
Property and is or shall be fully familiar with the physical condition thereof
and, subject to the terms and conditions of this Agreement, shall purchase the
Property in its “as is” condition, “with all faults,” on the Closing Date.  The provisions of the foregoing three (3) paragraphs
of this Section shall survive the Closing.

 

4.2.         Knowledge
Defined.  All references
in this Agreement to the “knowledge of Seller” or “to Seller’s knowledge” or
any words of similar import shall refer only to the actual knowledge of Kip
Marshall, Donna Cottle, Crystal Jones (the property manager) and Krista Willson
(the asset manager) who have been actively involved in the management of Seller’s
business in respect of the Property in the capacities of representatives of BVT
Management Services, Inc., an affiliate of Seller.  The terms “knowledge of Seller” or “to Seller’s
knowledge” or any words of similar import shall not be construed, by imputation
or otherwise, to refer to the knowledge of Seller, or any affiliate of Seller,
or to any other partner, beneficial owner, officer, agent, manager,
representative or employee of Seller, or any of their respective affiliates, or
to impose on any of the individuals named above any duty to investigate the
matter to which such actual knowledge, or the absence thereof, pertains.  There shall be no personal liability on the
part of the individuals named above arising out of any representations or
warranties made herein or otherwise.

 

4.3.         Covenants and Agreements of Seller.

 

(a)           Leasing Arrangements.  During the pendency of this Agreement, Seller
will not enter into any lease affecting the Property, or modify or amend in any
material respect, or terminate, any of the existing Leases without Purchaser’s
prior written consent in each instance, which consent shall not be unreasonably
withheld, delayed or conditioned and which shall be deemed given unless denied
by written notice to Seller given within five (5) Business Days after
Purchaser’s receipt of Seller’s written request therefor, each of which
requests shall be accompanied by a copy of any proposed modification or
amendment of an existing Lease or of any new Lease that Seller wishes to
execute between the Effective Date and the Closing Date, including, without
limitation, a description of any Tenant Inducement Costs and leasing
commissions associated with any proposed renewal or expansion of an existing
Lease or with any such new Lease.  If
Purchaser fails to notify Seller in writing of its approval or disapproval
within said five (5) Business Day period, such failure by Purchaser shall
be deemed to be the approval of Purchaser. 
At Closing, Purchaser shall reimburse Seller for any Tenant Inducement
Costs or leasing commissions actually incurred by Seller pursuant to a renewal
or expansion of any existing Lease or new Lease approved (or deemed approved)
by Purchaser hereunder after the Effective Date.

 

(b)           New Contracts. 
During the pendency of this Agreement, Seller will not enter into any
contract, or modify, amend, renew or extend any Operating Agreement, that will
be an obligation affecting the Property or any part thereof subsequent to the
Closing Date without Purchaser’s prior written consent in each instance.

 

18

 

(c)           Operation of Property.  During the pendency of this Agreement, Seller
shall continue to operate the Property in a good and businesslike fashion
consistent with Seller’s past practices.

 

(d)           Insurance.  During the pendency of this Agreement, Seller
shall, at its expense, continue to maintain the insurance policies covering the
Improvements which are currently in force and effect.

 

(e)           Tenant Estoppel
Certificates.  Seller shall endeavor
in good faith (but without obligation to incur any cost or expense, except as
set forth in the Leases) to obtain and deliver to Purchaser prior to Closing a
written Tenant Estoppel Certificate in the form attached hereto as EXHIBIT “I” signed by each tenant under each of the
Leases; provided that delivery of such signed Tenant Estoppel Certificates
shall be a condition of Closing only to the extent set forth in Section 6.1(d) hereof;
and in no event shall the inability or failure of Seller to obtain and deliver
said Tenant Estoppel Certificates (Seller having used its good faith efforts as
set forth above) be a default of Seller hereunder.

 

(f)            Right to Audit.
Seller agrees that Purchaser’s accountants, at Purchaser’s sole cost, shall
have the right to perform an audit on Seller’s previous two years’ financial
statements with respect to each Property (provided, however, only for those
periods during which Seller has owned such Property) and Seller agrees to issue
appropriate management representation letters in connection therewith.

 

4.4.         Representations and Warranties of
Purchaser.

 

(a)           Organization, Authorization and Consents.  Purchaser is a duly organized and validly
existing limited liability company under the laws of the State of Indiana.  Purchaser has the right, power and authority
to enter into this Agreement and to purchase the Property in accordance with
the terms and conditions of this Agreement, to engage in the transactions
contemplated in this Agreement and to perform and observe the terms and
provisions hereof.

 

(b)           Action of Purchaser, Etc.  Purchaser has taken all necessary action to
authorize the execution, delivery and performance of this Agreement, and upon
the execution and delivery of any document to be delivered by Purchaser on or
prior to the Closing, this Agreement and such document shall constitute the
valid and binding obligation and agreement of Purchaser, enforceable against
Purchaser in accordance with its terms, except as enforceability may be limited
by bankruptcy, insolvency, reorganization, moratorium or similar laws of
general application affecting the rights and remedies of creditors.

 

(c)           No Violations of Agreements. To Purchaser’s
knowledge, neither the execution, delivery or performance of this Agreement by
Purchaser, nor compliance with the terms and provisions hereof, will result in
any breach of the terms, conditions or provisions of, or conflict with or
constitute a default under the terms of any indenture, deed to secure debt,
mortgage, deed of trust, note, evidence of indebtedness or any other agreement
or instrument by which Purchaser is bound.

 

19

 

(d)           Litigation. 
To Purchaser’s knowledge, Purchaser has received no written notice that
any action or proceeding is pending or threatened, which questions the validity
of this Agreement or any action taken or to be taken pursuant hereto.

 

The representations and warranties made in this Agreement by Purchaser
shall be continuing and shall be deemed remade by Purchaser as of the Closing
Date, with the same force and effect as if made on, and as of, such date
subject to Purchaser’s right to update such representations and warranties by
written notice to Seller and in Purchaser’s certificate to be delivered
pursuant to Section 5.2(d) hereof. 
All representations and warranties made in this Agreement by Purchaser
shall survive the Closing for a period of one (1) year, and upon
expiration thereof shall be of no further force or effect except to the extent
that with respect to any particular alleged breach, Seller gives Purchaser
written notice prior to the expiration of said one (1) year period of such
alleged breach with reasonable detail as to the nature of such breach and files
an action against Seller with respect thereto within ninety (90) days after the
giving of such notice.

 

ARTICLE 5.

CLOSING
DELIVERIES, CLOSING COSTS AND PRORATIONS

 

5.1.         Seller’s Closing
Deliveries.  For and in
consideration of, and as a condition precedent to Purchaser’s delivery to Seller
of the Purchase Price, Seller shall obtain or execute and deliver to Purchaser
at Closing the following documents, all of which shall be duly executed,
acknowledged and notarized where required:

 

(a)           Warranty Deed. 
Special warranty deed to the Land, in the form attached hereto as SCHEDULE 1 (the “Warranty Deeds”), subject only
to the Permitted Exceptions, and executed, acknowledged and sealed by
Seller.  The legal descriptions of the
Land set forth in said warranty deed shall be based upon and conform to the
applicable record title legal description contained in Seller’s vesting deed;

 

(b)           Quitclaim Deed. 
If requested by Purchaser, one or more quitclaim deeds to the Land and
Improvements (or any portion or portions thereof), in form and substance reasonably
satisfactory to Seller, and executed, acknowledged and sealed by Seller;

 

(c)           Bill of Sale. Bills of sale for the Personal
Property in the form attached hereto as SCHEDULE 2
(the “Bill of Sale”), without warranty as to the title or condition of
the Personal Property;

 

(d)           Assignment and Assumption of Leases and Security
Deposits.  Two (2) counterparts
of an assignment and assumption of Leases and Security Deposits for each
Property and, to the extent required elsewhere in this Agreement, the obligations
of Seller under the Commission Agreements in the form attached hereto as SCHEDULE 3 (the “Assignment and Assumption of Leases”),
executed, acknowledged and sealed by Seller;

 

20

 

(e)           Updated Rent Roll.  An update of the Rent Roll (with modifications
as appropriate), certified by Seller to be accurate in all material respects as
of the date of Closing;

 

(f)            Assignment and Assumption of Operating Agreements.  Two (2) counterparts of an assignment
and assumption of Operating Agreements for each Property in the form attached
hereto as SCHEDULE 4  (the “Assignment and Assumption of
Operating Agreements”), executed, acknowledged and sealed by Seller;

 

(g)           General Assignment. 
An assignment of the Intangible Property for each Property in the form
attached hereto as SCHEDULE 5 (the
“General Assignment”), executed, acknowledged and sealed by Seller;

 

(h)           Seller’s Affidavit. 
Owner’s affidavits substantially in the form attached hereto as SCHEDULE 6 (“Seller’s Affidavit”), sufficient to
cause the Title Company to delete the standard title exceptions to the final
title policy and stating that there are no known boundary disputes with respect
to the Properties, that there are no parties in possession of the Property other
than Seller and the tenants under the Leases, that there are no brokers except
as disclosed herein, that any improvements or repairs made by, or for the
account of, or at the instance of Seller to or with respect to the Property
within ninety (90) days prior to the Closing have been paid for in full (or
that adequate provision has been made therefor to the reasonable satisfaction
of the Title Company), and including such other matters as may be reasonably
requested by the Title Company;

 

(i)            Seller’s Certificate.  A certificate in the form attached hereto as SCHEDULE 7 (“Seller’s Certificate”), evidencing
the reaffirmation of the truth and accuracy in all material respects of Seller’s
representations, warranties, and agreements set forth in Section 4.1 hereof,
with such modifications thereto as may be appropriate in light of any change in
circumstance since the Effective Date;

 

(j)            FIRPTA Certificate A FIRPTA Certificate in the
form attached hereto as SCHEDULE 8;

 

(k)           INTENTIONALLY OMITTED;

 

(l)            Evidence of Authority Such documentation as may
reasonably be required by the Title Company to establish that this Agreement,
the transactions contemplated herein, and the execution and delivery of the
documents required hereunder, are duly authorized, executed and delivered;

 

(m)          Settlement Statement 
Settlement statements for each Property setting forth the amounts paid
by or on behalf of and/or credited to each of Purchaser and Seller pursuant to
this Agreement;

 

(n)           Surveys and Plans. 
Such surveys, site plans, plans and specifications, and other matters
relating to the Property as are in the possession of Seller to the extent not
theretofore delivered to Purchaser;

 

21

 

(o)           Certificates of Occupancy.  To the extent the same are in Seller’s
possession, original or photocopies of certificates of occupancy for all space
within the Improvements located on the Property;

 

(p)           Leases.  To
the extent the same are in Seller’s possession, original executed Leases and
the contents of all lease files, including original tenant correspondence,
guarantees, and similar documents;

 

(q)           Tenant Estoppel Certificates.  All originally executed Tenant Estoppel
Certificates as may be in Seller’s possession;

 

(r)            Notices of Sale to Tenants.  Seller will join with Purchaser in executing
a notice, in form and content reasonably satisfactory to Seller and Purchaser
(the “Tenant Notices of Sale”), which Purchaser shall send to each
tenant under the Leases informing such tenant of the sale of the Property and
of the assignment to and assumption by Purchaser of Seller’s interest in the
Leases and the Security Deposits and directing that all rent and other sums
payable for periods after the Closing under such Lease shall be paid as set
forth in said notices;

 

(s)           Notices of Sale to Service Contractors and Leasing
Agents.  Seller will join with
Purchaser in executing notices, in form and content reasonably satisfactory to
Seller and Purchaser (the “Other Notices of Sale”), which Purchaser
shall send to each service provider and leasing agent under the Operating
Contracts and Commission Agreements (as the case may be) assumed by Purchaser
at Closing informing such service provider or leasing agent (as the case may
be) of the sale of the Property and of the assignment to and assumption by
Purchaser of Seller’s obligations under the Operating Agreements and Commission
Agreements arising after the Closing Date and directing that all future
statements or invoices for services under such Operating Agreements and/or
Commission Agreements for periods after the Closing be directed to Seller or
Purchaser as set forth in said notices;

 

(t)            Keys and Records. 
All of the keys to any door or lock on the Property and the original
tenant files and other non-confidential books and records (excluding any
appraisals, budgets, strategic plans for the Property, internal analyses,
information regarding the marketing of the Property for sale, submissions
relating to Seller’s obtaining of corporate authorization, attorney and accountant
work product, attorney-client privileged documents, or other information in the
possession or control of Seller or Seller’s property manager which Seller deems
proprietary) relating to the Property in Seller’s possession; and

 

(u)           Other Documents. 
Such other documents as shall be reasonably requested by the Title
Company or Purchaser to effectuate the purposes and intent of this Agreement.

 

5.2.         Purchaser’s
Closing Deliveries. Purchaser shall obtain or execute and
deliver to Seller at Closing the following documents, all of which shall be
duly executed, acknowledged and notarized where required:

 

(a)           Assignment and Assumption of Leases.  Two (2) counterparts of the Assignment
and Assumption of Leases for each Property, executed, acknowledged and sealed
by Purchaser;

 

22

 

(b)           Assignment and Assumption of Operating Agreements.  Two (2) counterparts of the Assignment
and Assumption of Operating Agreements for each Property, executed,
acknowledged and sealed by Purchaser;

 

(c)           General Assignment. 
Two (2) counterparts of the General Assignment for each Property,
executed, acknowledged and sealed by Purchaser;

 

(d)           Purchaser’s Certificate.  A certificate in the form attached hereto as SCHEDULE 10 (“Purchaser’s Certificate”),
evidencing the reaffirmation of the truth and accuracy in all material respects
of Purchaser’s representations, warranties and agreements contained in Section 4.4
hereof, with such modifications thereto as may be appropriate in light of any
change in circumstances since the Effective Date;

 

(e)           Notice of Sale to Tenants.  The Tenant Notices of Sale, executed by
Purchaser, as contemplated in Section 5.1(r) hereof;

 

(f)            Notices of Sale to Service Contractors and Leasing
Agents.  The Other Notices of Sale to
Service Contractors and Leasing Agents, as contemplated in Section 5.1(s)
hereof;

 

(g)           Settlement Statement  Settlement statements for each Property
setting forth the amounts paid by or on behalf of and/or credited to each of
Purchaser and Seller pursuant to this Agreement;

 

(h)           Evidence of Authority.  A copy of resolutions of the Board of
Directors of the Purchaser, certified by the Secretary or Assistant Secretary
of Purchaser to be in force and unmodified as of the date and time of Closing,
authorizing the purchase contemplated herein, the execution and delivery of the
documents required hereunder, and designating the signatures of the persons who
are to execute and deliver all such documents on behalf of Purchaser or if
Purchaser is not a corporation, such documentation as Seller may reasonably
require to establish that this Agreement, the transaction contemplated herein,
and the execution and delivery of the documents required hereunder, are duly
authorized, executed and delivered; and

 

(i)            Other Documents. 
Such other documents as shall be reasonably requested by Seller’s
counsel to effectuate the purposes and intent of this Agreement.

 

5.3.         Closing Costs.
Seller shall pay the cost of the documentary stamps or transfer taxes imposed
by the State of Texas upon the conveyance of the Property pursuant hereto, the
attorneys’ fees of Seller, and all other costs and expenses incurred by Seller
in closing and consummating the purchase and sale of the Property pursuant
hereto.  Purchaser shall pay the cost of
any owner’s and/or lender’s title insurance premium and title examination fees,
the cost of the Survey, all ministerial recording fees on all instruments to be
recorded in connection with this transaction (not including deed taxes), the
attorneys’ fees of Purchaser, and all other costs and expenses incurred by
Purchaser in the performance of Purchaser’s due diligence inspection of the
Property and in closing and consummating the purchase and sale of the Property
pursuant hereto.

 

23

 

5.4.         Prorations and
Credits.  The items in
this Section 5.4 shall be prorated between Seller and Purchaser or
credited, as specified herein.  All
matters involving prorations or adjustment to be made in connection with the
Closing and not specifically provided for in some other provision of this
Agreement shall be prorated as of midnight of the day immediately preceding the
Closing Date.

 

(a)           Taxes.  All
general real estate taxes imposed by any governmental authority (“Taxes”)
for the year in which the Closing occurs shall be prorated between Seller and
Purchaser as of the Closing.  If the
Closing occurs prior to the receipt by Seller of the bill for Taxes for the
calendar year or other applicable tax period in which the Closing occurs, Taxes
shall be prorated for such calendar year or other applicable tax period based
upon the prior year’s tax bill.

 

(b)           Reproration of Taxes.  After receipt of final bill for Taxes,
Purchaser shall prepare and present to Seller a calculation of the reproration
of such Taxes, based upon the actual amount of such Taxes charged to or
received by the parties for the year or other applicable fiscal period.  The parties shall make the appropriate
adjusting payment between them within thirty (30) days after presentment to
Seller of Purchaser’s calculation and appropriate back-up information.  Purchaser shall provide Seller with
appropriate backup materials related to the calculation.  The provisions of this Section 5.4(b) shall
survive the Closing for a period of one (1) year after the Closing Date.

 

(c)           Rents, Income and Other Expenses.  Rents and any other amounts actually received
from tenants shall be prorated as of the Closing Date and be adjusted against
the Purchase Price on the basis of a schedule which shall be prepared by
Seller and delivered to Purchaser for Purchaser’s review and approval prior to
Closing. Purchaser shall receive at Closing a credit for Purchaser’s pro rata
share of the rents, additional rent, common area maintenance charges, tenant
reimbursements and escalations, and all other payments received for the month
of Closing and for all other rents and other amounts that apply to periods from
and after the Closing, but which are received by Seller prior to Closing.  Purchaser agrees to pay to Seller, upon
receipt and net of any collection costs incurred by Purchaser, any rents or
other payments by tenants under their respective Leases that apply to periods
prior to Closing but are received by Purchaser after Closing; provided,
however, that any delinquent rents or other payments by tenants shall be
applied first to any current amounts owing by such tenants, then to delinquent
rents in the order in which such rents are most recently past due, with the
balance, if any, paid over to Seller to the extent of delinquencies existing at
the time of Closing to which Seller is entitled; it being understood and agreed
that Purchaser shall not be legally responsible to Seller for the collection of
any rents or other charges payable with respect to the Leases or any portion
thereof, which are delinquent or past due as of the Closing Date; but Purchaser
agrees that Purchaser shall send monthly notices for a period of three (3) consecutive
months in an effort to collect any rents and charges not collected as of the
Closing Date.  Any reimbursements payable
by any tenant under the terms of any tenant lease affecting the Property as of
the Closing Date, which reimbursements pertain to such tenant’s pro rata share
of increased operating expenses or common area maintenance costs incurred with
respect to the Property at any time prior to the Closing, shall be prorated
upon Purchaser’s actual receipt of any such reimbursements, on the basis of the
number of days of Seller and Purchaser’s respective

 

24

 

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

 

(d)           Percentage Rents.  Percentage rents, if any, collected by
Purchaser from any tenant under such tenant’s Lease for the percentage rent
accounting period in which the Closing occurs shall be prorated between Seller
and Purchaser as of the Closing Date, as, if, and when received by Purchaser,
such that Seller’s pro rata share shall be an amount equal to the total
percentage rentals paid for such percentage rent accounting period under the
applicable Lease multiplied by a fraction, the numerator of which shall be the
number of days in such accounting period prior to Closing and the denominator
of which shall be the total number of days in such accounting period; provided,
however, that such proration shall be made only at such time as such tenant is
current or, after application of a portion of such payment, will be current in
the payment of all rental and other charges under such tenant’s Lease that
accrue and become due and payable from and after the Closing.  The provisions of this Section 5.4(d) shall
survive the Closing.

 

(e)           Tenant Inducement
Costs.  Set forth on EXHIBIT “K” attached hereto and made a part hereof is a
list of tenants at the Property with respect to which Tenant Inducement Costs
and/or leasing commissions have not been paid in full as of the Effective
Date.  Seller shall pay all such Tenant
Inducement Costs and leasing commissions set forth in EXHIBIT “K”
as and when the same are due and payable.  If said amounts have not been paid in full on
or before Closing, Purchaser shall receive a credit against the Purchase Price
in the aggregate amount of all such Tenant Inducement Costs and leasing
commissions remaining unpaid at Closing, and Purchaser shall assume the
obligation to pay amounts payable after Closing up to the amount of such credit
received at Closing.  Except as may be
specifically provided to the contrary elsewhere in this Agreement, Purchaser
shall be responsible for the payment of all Tenant Inducement Costs and leasing
commissions which become due and payable (whether before or after Closing) (i) as
a result of any renewals or extensions or expansions of existing Leases
approved or deemed approved by Purchaser in accordance with Section 4.3(a) hereof
between the Effective Date and the Closing Date and under any new Leases,
approved or deemed approved by Purchaser in accordance with said Section 4.3(a),
and (ii) all Tenant Inducement

 

25

 

Costs and leasing
commissions that first become due and payable after Closing.  The provisions of this Section 5.4(e) shall
survive the Closing.

 

(f)            Security
Deposits.  Purchaser shall receive at
Closing a credit for all Security Deposits required to be held by Seller under
the Leases (except to the extent that a Tenant has certified in a Tenant
Estoppel Certificate that it has not deposited, in whole or part, its security
deposit with Seller) together with a detailed inventory of such Security
Deposits certified by Seller in the updated Rent Roll to be delivered by Seller
at Closing.

 

(g)           Operating
Expenses.  Personal property taxes,
installment payments of special assessment liens, vault charges, sewer charges,
utility charges, and normally prorated operating expenses actually paid or
payable as of the Closing Date shall be prorated as of the Closing Date and
adjusted against the Purchase Price, provided that within ninety (90) days
after the Closing, Purchaser and Seller will make a further adjustment for such
taxes, charges and expenses which may have accrued or been incurred prior to
the Closing Date, but not collected or paid at that date.  In addition, within ninety (90) days after
the close of the fiscal year(s) used in calculating the pass-through to tenants
of operating expenses and/or common area maintenance costs under the Leases
(where such fiscal year(s) include(s) the Closing Date), Seller and Purchaser
shall, upon the request of either, re-prorate on a fair and equitable basis in
order to adjust for the effect of any credits or payments due to or from
tenants for periods prior to the Closing Date. 
All prorations shall be made based on the number of calendar days in
such year or month, as the case may be. 
The provisions of this Section 5.4(g) shall survive the
Closing.

 

ARTICLE 6.

CONDITIONS
TO CLOSING

 

6.1.         Conditions
Precedent to Purchaser’s Obligations.  The obligations of Purchaser hereunder to
consummate the transaction contemplated hereunder shall in all respects be
conditioned upon the satisfaction of each of the following conditions prior to
or simultaneously with the Closing, any of which may be waived by Purchaser in
its sole discretion by written notice to Seller at or prior to the Closing
Date:

 

(a)           Seller shall have delivered to Purchaser all of the items
required to be delivered to Purchaser pursuant to the terms of this Agreement,
including, but not limited to Section 5.1 hereof;

 

(b)           Seller shall have performed, in all material respects, all
covenants, agreements and undertakings of Seller contained in this Agreement;

 

(c)           All representations and warranties of Seller as set forth
in this Agreement shall be true and correct in all material respects as of the
date of this Agreement and as of Closing, provided that solely for purposes of
this subparagraph such warranties and representations shall be deemed to be
given without being limited to Seller’s knowledge and without modification (by
update or otherwise, as provided in Section 5.1(i) hereof); and

 

(d)           Tenant Estoppel Certificates shall have been delivered to
Purchaser from: HEB (the “Anchor Tenant”), in the form that said tenant is
obligated to deliver pursuant to its lease;

 

26

 

and (z) tenants
occupying not less than eighty-five percent (85%) of the remaining occupied,
aggregate net rentable square footage of all of the Improvements located on the
Property.  Each Tenant Estoppel
Certificate shall: (i) be substantially in the form attached hereto as EXHIBIT “I” (or if the applicable Lease provides for a
particular form of estoppel certificate to be given by the tenant thereunder,
the Tenant Estoppel Certificate with respect to such Lease may be in the form
as called for therein), (ii) be dated within sixty (60) days prior to the
Closing Date, (iii) confirm the material terms of the applicable Lease,
and (iv) confirm the absence of any material defaults under the applicable
Lease as of the date thereof.  The
delivery of said Tenant Estoppel Certificates shall be a condition of Closing,
and the failure or inability of Seller to obtain and deliver said Tenant Estoppel
Certificates, Seller having used its good faith efforts to obtain the same,
shall not constitute a default by Seller under this Agreement.  Notwithstanding anything to the contrary
contained herein, if Seller has been unable to obtain and deliver to Purchaser
by Closing the applicable percentage of Tenant Estoppel Certificates for the
tenants described in subclause (z) above and meeting the requirements set forth
above, then, at the option of Seller, that portion of this condition to Closing
may be satisfied by Seller’s execution and delivery to Purchaser at Closing, on
behalf of any one or more tenants which have failed to provide the required
Tenant Estoppel Certificate an estoppel certificate substantially in the form
attached hereto as SCHEDULE 11
(“Seller’s Estoppel”); and provided that Seller’s liability under any
such Seller’s Estoppel so executed and delivered by Seller to Purchaser at
Closing shall cease and terminate upon the receipt by Purchaser after Closing
of a duly executed Tenant Estoppel Certificate from the tenant under the applicable
Lease covered in such Seller’s Estoppel. 
Notwithstanding Seller’s right to substitute the Seller’s Estoppel for
some percentage of tenants in the small shops, the Seller’s Estoppel may not be
used as a substitution for the Tenant Estoppel Certificate from the Anchor
Tenant.

 

(e)           Existing
Lender shall have consented to Purchaser’s assumption of the Existing Loan, all
as such terms are defined in the Purchase and Sale Agreement between Purchaser
and an affiliate of Seller for Fountain Oaks Shopping Center in Atlanta,
Georgia (the “Fountain Oaks Contract”).

 

In the event any of the conditions in this Section 6.1 have not
been satisfied (or otherwise waived in writing by Purchaser) prior to or on the
Closing Date (as same may be extended or postponed as provided in this
Agreement), Purchaser shall have the right to, at its option: (x) terminate
this Agreement by written notice to Seller given prior to the Closing,
whereupon (i) Escrow Agent shall return the Earnest Money to Purchaser;
and (ii) except for those provisions of this Agreement which by their
express terms survive the termination of this Agreement, no party hereto shall
have any other or further rights or obligations under this Agreement; or (y)
extend the Closing Date for a period of thirty (30) days to permit Seller to
make further good faith efforts to satisfy such condition.  In the event that the Closing Date is so
extended and, at the end of such period, the unsatisfied condition has still
not been satisfied, Purchaser shall have the right to terminate this Agreement
by written notice to Seller given prior to Closing, whereupon (i) Escrow
Agent shall return the Earnest Money to Purchaser; and (ii) except for
those provisions of this Agreement which by their express terms survive the
termination of this Agreement, no party hereto shall have any other or further
or rights or obligations under this Agreement.

 

27

 

6.2.         Conditions
Precedent to Seller’s Obligations.  The obligations of Seller hereunder to
consummate the transaction contemplated hereunder shall in all respects be
conditioned upon the satisfaction of each of the following conditions prior to
or simultaneously with the Closing, any of which may be waived by Seller in its
sole discretion by written notice to Purchaser at or prior to the Closing Date:

 

(a)           Purchaser shall have paid and Seller shall have received
the Purchase Price, as adjusted pursuant to the terms and conditions of this
Agreement, which Purchase Price shall be payable in the amount and in the
manner provided for in this Agreement;

 

(b)           Purchaser shall have
delivered to Seller all of the items required to be delivered to Seller
pursuant to the terms of this Agreement, including, but not limited to Section 5.2
hereof;

 

(c)           Purchaser shall have
performed, in all material respects, all covenants, agreements and undertakings
of Purchaser contained in this Agreement; and

 

(d)           All representations and warranties of Purchaser as set
forth in this Agreement shall be true and correct in all material respects as
of the date of this Agreement and as of Closing, provided that solely for
purposes of this subparagraph such warranties and representations shall be
deemed to be given without being limited to Purchaser’s knowledge and without
modification (by update or otherwise, as provided in Section 5.2(d) 
hereof).

 

(e)           Seller shall not
have any obligation to sell the Property to Purchaser unless Purchaser simultaneously
closes on the acquisition of the Fountain Oaks Shopping Center in Atlanta,
Georgia and Indian River Square Shopping Center in Vero Beach, Florida on the
Closing Date pursuant to contracts between Purchaser and affiliates of Seller
bearing the date set forth on this Agreement (the “Related Agreements”), unless
the Existing Lender has approved, but is not yet prepared to close on Purchaser’s
assumption of the Existing Loan (as defined in the Fountain Oaks Contract), in
which case Purchaser shall simultaneously close on acquisition of the Shopping
Center and Plaza Volente Shopping Center, and shall remain obligated to close
on the acquisition of Fountain Oaks Shopping Center as set forth in the
Fountain Oaks Contract.  In the event
that Closing does not occur as a result of Purchaser’s failure or refusal to
adhere to the requirements of this subsection, this Agreement and the Related
Agreements shall terminate and Escrow Agent shall pay the Earnest Money to the
Seller, provided, however, that the Existing Lender’s failure or refusal to
approve Purchaser’s assumption of the Existing Loan shall not constitute
Purchaser’s failure or refusal to adhere to the requirements of this subsection unless
Purchaser has violated the covenant set forth in Section 4.5 of the
Fountain Oaks Contract.

 

ARTICLE 
7.

CASUALTY
AND CONDEMNATION

 

7.1.         Casualty.  Risk of loss up to and including the Closing
Date shall be borne by Seller.  In the
event of any immaterial damage or destruction to the Property or any portion
thereof, Seller and Purchaser shall proceed to close under this Agreement, and
Purchaser will receive (and Seller will assign to Purchaser at the Closing
Seller’s rights under insurance policies

 

28

 

to receive) any
insurance proceeds (including any rent loss insurance applicable to any period
on and after the Closing Date) due Seller as a result of such damage or
destruction and assume responsibility for such repair, and Purchaser shall
receive a credit at Closing for any deductible, uninsured or coinsured amount
under said insurance policies.  For
purposes of this Agreement, the term “immaterial damage or destruction”
shall mean such instances of damage or destruction:  (i) which can be repaired or restored at
a cost of One Hundred Thousand and No/100 Dollars ($100,000.00) or less; (ii) which
can be restored and repaired within sixty (60) days from the date of such
damage or destruction; and (iii) in which Seller’s rights under its rent
loss insurance policy covering the Property are sufficient to replace lost rent
for a period of eighteen (18) months and are assignable to Purchaser and will
continue pending restoration and repair of the damage or destruction.

 

In the event of any material damage or destruction to the Property or
any portion thereof, Purchaser may, at its option, by notice to Seller given
within the earlier of twenty (20) days after Purchaser is notified by Seller of
such damage or destruction, or the Closing Date, but in no event less than ten (10) days
after Purchaser is notified by Seller of such damage or destruction (and if
necessary the Closing Date shall be extended to give Purchaser the full 10-day
period to make such election): (i) terminate this Agreement, whereupon
Escrow Agent shall immediately return the Earnest Money to Purchaser, or (ii) proceed
to close under this Agreement, receive (and Seller will assign to Purchaser at
the Closing Seller’s rights under insurance policies to receive) any insurance
proceeds (including any rent loss insurance applicable to the period on or
after the Closing Date) due Seller as a result of such damage or destruction
(less any amounts reasonably expended for restoration or collection of
proceeds) and assume responsibility for such repair, and Purchaser shall
receive a credit at Closing for any deductible amount under said insurance
policies.  If Purchaser fails to deliver
to Seller notice of its election within the period set forth above, Purchaser
will conclusively be deemed to have elected to proceed with the Closing as
provided in clause (ii) of the preceding sentence.  If Purchaser elects clause (ii) above,
Seller will cooperate with Purchaser after the Closing to assist Purchaser in
obtaining the insurance proceeds from Seller’s insurers.  For purposes of this Agreement “material
damage or destruction” shall mean all instances of damage or destruction
that are not immaterial, as defined herein.

 

7.2.         Condemnation.  If, prior to the Closing, all or any part of
the Property is subjected to a bona fide threat of condemnation by a body
having the power of eminent domain or is taken by eminent domain or
condemnation (or sale in lieu thereof), or if Seller has received written
notice that any condemnation action or proceeding with respect to the Property
is contemplated by a body having the power of eminent domain, Seller shall give
Purchaser immediate written notice of such threatened or contemplated
condemnation or of such taking or sale, and Purchaser may by written notice to
Seller given within thirty (30) days after the receipt of such notice from
Seller, elect to cancel this Agreement. 
Purchaser waives any right to terminate as a result of disclosures set
forth in Schedule 4.1(m), if any. 
If Purchaser chooses to cancel this Agreement in accordance with this Section 7.2,
then the Earnest Money shall be returned immediately to Purchaser by Escrow
Agent and the rights, duties, obligations, and liabilities of the parties
hereunder shall immediately terminate and be of no further force and effect,
except for those provisions of this Agreement which by their express terms
survive the termination of this Agreement. 
If Purchaser does not elect to cancel this Agreement in

 

29

 

accordance
herewith, this Agreement shall remain in full force and effect and the sale of
the Property contemplated by this Agreement, less any interest taken by eminent
domain or condemnation, or sale in lieu thereof, shall be effected with no
further adjustment and without reduction of the Purchase Price, and at the
Closing, Seller shall assign, transfer, and set over to Purchaser all of the
right, title, and interest of Seller in and to any awards applicable to the
Property that have been or that may thereafter be made for such taking.  At such time as all or a part of the Property
is subjected to a bona fide threat of condemnation and Purchaser shall not have
elected to terminate this Agreement as provided in this Section 7.2, and
provided that the Inspection Period has expired and Purchaser has delivered the
Additional Earnest Money to Escrow Agent, (i) Purchaser shall thereafter
be permitted to participate in the proceedings as if Purchaser were a party to
the action, and (ii) Seller shall not settle or agree to any award or
payment pursuant to condemnation, eminent domain, or sale in lieu thereof
without obtaining Purchaser’s prior written consent thereto in each case.

 

ARTICLE 
8.

DEFAULT
AND REMEDIES

 

8.1.         Purchaser’s
Default.  If Purchaser
fails to consummate this transaction for any reason other than
Seller’s intentional and willful default, failure of a condition to Purchaser’s
obligation to close, or the exercise by Purchaser of an express right of
termination granted herein, Seller shall be entitled, as its sole remedy
hereunder, to terminate this Agreement and to receive and retain the Earnest
Money as full liquidated damages for such default of Purchaser, the parties
hereto acknowledging that it is impossible to estimate more precisely the
damages which might be suffered by Seller upon Purchaser’s default, and that
said Earnest Money is a reasonable estimate of Seller’s probable loss in the
event of default by Purchaser.  Seller’s
retention of said Earnest Money is intended not as a penalty, but as full
liquidated damages.  The right to retain
the Earnest Money as full liquidated damages is Seller’s sole and exclusive
remedy in the event of default hereunder by Purchaser, and Seller hereby waives
and releases any right to (and hereby covenants that it shall not) sue the
Purchaser:  (a) for specific
performance of this Agreement, or (b) to recover actual damages in excess
of the Earnest Money.  The foregoing
liquidated damages provision shall not apply to or
limit Purchaser’s liability for Purchaser’s obligations under Sections 3.1(b),
3.1(c), 3.7 and 10.1 of this Agreement. 
Purchaser hereby waives and releases any right to (and hereby covenants
that it shall not) sue Seller or seek or claim a refund of said Earnest Money
(or any part thereof) on the grounds it is unreasonable in amount and exceeds
Seller’s actual damages or that its retention by Seller constitutes a penalty
and not agreed upon and reasonable liquidated damages.

 

8.2.         Seller’s Default.  If Seller fails to perform any of its
obligations under this Agreement for any reason other than Purchaser’s default
or the permitted termination of this Agreement by Seller or Purchaser as
expressly provided herein, Purchaser shall be entitled, as its sole remedy, and
at its option: (a) to receive the return of the Earnest Money from Escrow
Agent, and reimbursement from Seller for Purchaser’s reasonable third party due
diligence costs which return and reimbursement shall operate to terminate this
Agreement and release Seller from any and all liability hereunder, (b) to
enforce specific performance of Seller’s obligation to execute

 

30

 

and deliver the
documents required to convey the Property to Purchaser in accordance with this
Agreement, or (c) in the event that Seller’s default is such that the
remedy of specific performance is rendered impossible, or such that the value
of the Property is adversely affected, then Seller shall be obligated to
reimburse Purchaser for Purchaser’s reasonable third party due diligence costs
which return and reimbursement shall operate to terminate this Agreement and
release Seller from any and all liability hereunder.  Purchaser expressly waives its rights to seek
damages in the event of Seller’s default hereunder (except for the
reimbursement described above).  Purchaser shall be deemed to have elected to
terminate this Agreement and to receive a return of the Earnest Money and
reimbursement of third-party due diligence costs from Escrow Agent if Purchaser
fails to file suit for specific performance against Seller in a court having
jurisdiction in the county and state in which the Property is located, on or
before sixty (60) days following the date upon which Purchaser delivered
written notice to Seller stating that Seller was in default of this Agreement.

 

ARTICLE 9.

ASSIGNMENT

 

9.1.         Assignment.         Subject to the next following sentence,
this Agreement and all rights and obligations hereunder shall not be assignable
by any party without the written consent of the other.  Notwithstanding the foregoing to the contrary,
this Agreement and Purchaser’s rights hereunder may be transferred and assigned
to any entity owned directly or indirectly, in whole or part, by Kite Realty
Group, L.P.  Any assignee or transferee
under any such assignment or transfer by Purchaser as to which Seller’s written
consent has been given or as to which Seller’s consent is not required
hereunder shall expressly assume all of Purchaser’s duties, liabilities and
obligations under this Agreement by written instrument delivered to Seller as a
condition to the effectiveness of such assignment or transfer.  No assignment or transfer shall relieve the
original Purchaser of any duties or obligations hereunder, and the written
assignment and assumption instrument shall expressly so provide.  Subject to the foregoing, this Agreement
shall be binding upon and shall inure to the benefit of the parties hereto and
their respective legal representatives, successors and permitted assigns.  This Agreement is not intended and shall not
be construed to create any rights in or to be enforceable in any part by any
other persons.

 

ARTICLE 10.

BROKERAGE
COMMISSIONS

 

10.1.       Broker.  Upon the Closing, and only in the event the
Closing occurs, Seller shall pay a brokerage commission to NewBridge Retail
Advisors (“Broker”) pursuant to a separate agreement.  Broker acknowledges and agrees that it shall
look solely to Seller for the payment of its commission, and Broker hereby
waives and releases any present or future claims against Purchaser for the
payment of such commission.  In addition,
Broker (upon receipt of its brokerage commission) agrees to execute and deliver
to Seller and Purchaser at the Closing a release and waiver of any claim Broker
may have against Purchaser or the Property. 
Broker shall and does hereby indemnify and hold Purchaser and Seller
harmless from and against any

 

31

 

and all liability,
loss, cost, damage, and expense, including reasonable attorneys’ fees actually
incurred and costs of litigation, Purchaser or Seller shall ever suffer or
incur because of any claim by any agent, salesman, or broker, whether or not
meritorious, for any fee, commission or other compensation with regard to this
Agreement or the sale and purchase of the Property contemplated hereby, and
arising out of any acts or agreements of Broker.  Seller shall and does hereby indemnify and
hold Purchaser harmless from and against any and all liability, loss, cost,
damage, and expense, including reasonable attorneys’ fees actually incurred and
costs of litigation, Purchaser shall ever suffer or incur because of any claim
by any agent, salesman, or broker, whether or not meritorious, for any fee,
commission or other compensation with regard to this Agreement or the sale and
purchase of the Property contemplated hereby, and arising out of any acts or
agreements of Seller, including any claim asserted by Broker.  Likewise, Purchaser shall and does hereby
indemnify and hold Seller free and harmless from and against any and all
liability, loss, cost, damage, and expense, including reasonable attorneys’
fees actually incurred and costs of litigation, Seller shall ever suffer or
incur because of any claim by any agent, salesman, or broker, whether or not
meritorious, for any fee, commission or other compensation with respect to this
Agreement or the sale and purchase of the Property contemplated hereby and
arising out of the acts or agreements of Purchaser.  This Section 10.1 shall survive the
Closing or any earlier termination of this Agreement.

 

ARTICLE 11.

MISCELLANEOUS

 

11.1.       Notices.  Wherever any notice or other communication is
required or permitted hereunder, such notice or other communication shall be in
writing and shall be delivered by overnight courier, hand, facsimile
transmission, or sent by U.S. registered or certified mail, return receipt
requested, postage prepaid, to the addresses or facsimile numbers set out below
or at such other addresses as are specified by written notice delivered in
accordance herewith:

 

	
  PURCHASER:

  	
  KRG Development, LLC

  
	
   

  	
  30 S. Meridian Street

  
	
   

  	
  Suite 1100

  
	
   

  	
  Indianapolis, Indiana 46204

  
	
   

  	
  Attention: Daniel R.
  Sink

  
	
   

  	
  Facsimile: (317) 577-5605

  
	
   

  	
   

  
	
  SELLER:

  	
  BVT Institutional
  Investments, Inc.

  
	
   

  	
  3350 Riverwood Parkway

  
	
   

  	
  Suite 1500

  
	
   

  	
  Atlanta, Georgia 30339

  
	
   

  	
  Attention: Brad Garner

  
	
   

  	
  Facsimile: (770) 618-3567

  

 

32

 

	
  with a copy to:

  	
  McGuireWoods LLP

  
	
   

  	
  1170 Peachtree Street,
  N.E.

  
	
   

  	
  Suite 2100

  
	
   

  	
  Atlanta, Georgia 30309

  
	
   

  	
  Attn: Stephen D.
  Peterson

  
	
   

  	
  Facsimile: (404) 443-5764

  

 

Any notice or other communication (i) mailed as hereinabove
provided shall be deemed effectively given or received on the third (3rd)
business day following the postmark date of such notice or other communication,
(ii) sent by overnight courier or by hand shall be deemed effectively
given or received upon receipt, and (iii) sent by facsimile transmission
shall be deemed effectively given or received on the first Business Day after
the day of transmission of such notice and confirmation of such transmission.

 

11.2        Possession.  Full and exclusive possession of the
Property, subject only to the Permitted Exceptions and the rights of the
tenants under the Leases, shall be delivered by Seller to Purchaser on the
Closing Date.

 

11.3        Time Periods.  If the time period by which any right,
option, or election provided under this Agreement must be exercised, or by
which any act required hereunder must be performed, or by which the Closing
must be held, expires on a Saturday, Sunday, or holiday, then such time period
shall be automatically extended through the close of business on the next
regularly scheduled Business Day.

 

11.4        [INTENTIONALLY
DELETED]

 

11.5        Discharge of
Obligations.  The
acceptance by Purchaser of the documents listed in Section 5.1 hereunder
shall be deemed to constitute the full performance and discharge of each and
every warranty and representation made by Seller and Purchaser herein and every
agreement and obligation on the part of Seller and Purchaser to be performed
pursuant to the terms of this Agreement, except those warranties,
representations, covenants and agreements which are specifically provided in
this Agreement to survive Closing. 

 

11.6        Severability.  This Agreement is intended to be performed in
accordance with, and only to the extent permitted by, all applicable laws,
ordinances, rules and regulations. 
If any provision of this Agreement, or the application thereof to any
person or circumstance, shall, for any reason and to any extent be invalid or
unenforceable, the remainder of this Agreement and the application of such
provision to other persons or circumstances shall not be affected thereby but
rather shall be enforced to the greatest extent permitted by law.

 

11.7        Construction.  This Agreement shall not be construed more
strictly against one party than against the other merely by virtue of the fact
that this Agreement may have been prepared by counsel for one of the parties,
it being mutually acknowledged and agreed that Seller and Purchaser and their
respective counsel have contributed substantially and materially to the
preparation and negotiation of this Agreement. 
Accordingly, the normal rule of construction to

 

33

 

the effect that
any ambiguities are to be resolved against the drafting party shall not be
employed in the interpretation of this Agreement or any exhibits or amendments
hereto.

 

11.8        Sale Notification
Letters.   Promptly
following the Closing, Purchaser shall deliver the Tenant Notices of Sale to
each of the respective tenants under the Leases and the Other Notices of Sale
to each service provider and leasing agent, the obligations under whose
respective Operating Agreements and Commission Agreements Purchaser has assumed
at Closing.  The provisions of this Section shall
survive the Closing.

 

11.9        Access
to Records Following Closing.  Purchaser agrees that for a period of two (2) years
following the Closing, Seller shall have the right during regular business
hours, on five (5) days’ written notice to Purchaser, to examine and review
at Purchaser’s office (or, at Purchaser’s election, at the Property), the books
and records relating to the ownership and operation of the Property which were
delivered by Seller to Purchaser at the Closing.  Likewise, Seller agrees that for a period of two
(2) years following the Closing, Purchaser shall have the right during
regular business hours, on five (5) days’ written notice to Seller, to
examine and review at Seller’s office, all books, records and files, if any,
retained by Seller relating to the ownership and operation of the Property by
Seller prior to the Closing.  The
provisions of this Section shall survive the Closing.

 

11.10      Survival.  The provisions of this Article 11 and
the provisions of Sections 3.1(b), 3.1(c), 3.3, 3.7, 4.1, 4.2, 4.4, 5.1, 5.2,
5.4, 6.1(d) and 10.1 shall survive the Closing to the extent (and subject
to any specific limitations) provided in this Agreement and any earlier
termination of this Agreement and shall not be merged into the execution and
delivery of the Warranty Deed.

 

11.11      General Provisions.  No failure of either party to exercise any
power given hereunder or to insist upon strict compliance with any obligation
specified herein, and no custom or practice at variance with the terms hereof,
shall constitute a waiver of either party’s right to demand exact compliance
with the terms hereof.  This Agreement
contains the entire agreement of the parties hereto, and no representations,
inducements, promises, or agreements, oral or otherwise, between the parties
not embodied herein shall be of any force or effect.  Any amendment to this Agreement shall not be
binding upon Seller or Purchaser unless such amendment is in writing and
executed by both Seller and Purchaser. 
Subject to the provisions of Section 9.1 hereof, the provisions of
this Agreement shall inure to the benefit of and be binding upon the parties
hereto and their respective heirs, legal representatives, successors, and
permitted assigns.  Time is of the
essence in this Agreement.  The headings
inserted at the beginning of each paragraph are for convenience only, and do
not add to or subtract from the meaning of the contents of each paragraph.  This Agreement shall be construed and
interpreted under the laws of the State of Georgia.  Except as otherwise provided herein, all
rights, powers, and privileges conferred hereunder upon the parties shall be
cumulative but not restrictive to those given by law.  All personal pronouns used in this Agreement,
whether used in the masculine, feminine, or neuter gender shall include all
genders, and all references herein to the singular shall include the plural and
vice versa.

 

11.12      Attorney’s Fees.  If Purchaser or Seller brings an action at
law or equity against the other in order to enforce the provisions of this
Agreement or as a result of an alleged default

 

34

 

under this
Agreement, the prevailing party in such action shall be entitled to recover
court costs and reasonable attorney’s fees actually incurred from the non-prevailing
party.

 

11.13      Counterparts.  This Agreement may be executed in one or more
counterparts, each of which when taken together shall constitute one and the
same original.  To facilitate the
execution and delivery of this Agreement, the parties may execute and exchange
counterparts of the signature pages by facsimile, and the signature page of
either party to any counterpart may be appended to any other counterpart.

 

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

 

	
   

  	
  SELLER:

  
	
   

  	
   

  
	
   

  	
  U.S. RETAIL INCOME FUND VIII-E, LIMITED

  PARTNERSHIP, a Delaware limited partnership

  
	
   

  	
   

  
	
   

  	
  By: BVT Institutional
  Investments, Inc., a Georgia

  corporation, its general partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Brad R. Garner

  	
   

  
	
   

  	
  Name:

  	
    BRAD R.
  GARNER

  	
   

  
	
   

  	
  Title:

  	
       VICE
  PRESIDENT

  	
   

  
						

 

 

[SIGNATURES
CONTINUED ON FOLLOWING PAGE]

 

35

 

	
   

  	
  PURCHASER:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  KRG DEVELOPMENT, LLC,
  an Indiana limited

  liability company

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ John A. Kite

  	
   

  
	
   

  	
  Name:

  	
    JOHN A.
  KITE

  	
   

  
	
   

  	
  Title:

  	
      PRESIDENT
  AND CEO

  	
   

  
						

 

 

[SIGNATURES CONTINUED ON FOLLOWING PAGE]

 

1

 

IN WITNESS WHEREOF, the undersigned Broker has joined in the execution
and delivery hereof solely for the purpose of evidencing their rights and
obligations under the provisions of Section 10.1 hereof.

 

	
   

  	
  BROKER:

  
	
   

  	
   

  
	
   

  	
  NEWBRIDGE RETAIL
  ADVISORS

  
	
  Date of Execution:

  	
   

  
	
   

  	
  By:

  	
   /s/ William V.
  Barron

  	
   

  
	
   

  	
  Name:

  	
    WILLIAM V.
  BARRON

  	
   

  
	
  March 3, 2005

  	
   

  	
  Title:

  	
       MANAGING
  PARTNER/ PRESIDENT

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  :

  
								

 

1

 

EXHIBIT “A”

 

DESCRIPTION
OF LAND

 

Lots 1-6, Block “A”,
Plaza Volente Subdivision, a subdivision in Travis and Williamson County,
Texas, according to the map or plat recorded under Document Number 2003003320
of the Official Public Records of Travis County, Texas, and Cabinet Y, Slides
134-136 of the Plat Records of Williamson County, Texas

 

1

 

EXHIBIT “B”

 

LIST OF
PERSONAL PROPERTY

 

None

 

1

 

EXHIBIT “C”

 

LIST OF
COMMISSION AGREEMENTS

AND
EXISTING MANAGEMENT AGREEMENT

 

I.              Commission
Agreements Entered Into By Seller During Its Ownership of Property:

 

Property Management and
Leasing Subcontract dated December 30, 2004, by and between BVT Management
Services, Inc. and Trammell Crow Central Texas Ltd.

 

II.            Commission
Agreements Not Entered Into By Seller, But Affecting the Property:

 

None specifically
known to Seller.  Trammell Crow may have
agreements with leasing agents to lease the master leased space.  Leasing commissions for the master leased
space are the responsibility of Trammell Crow.

 

III.           Management
Agreement:

 

Property Management and
Leasing Subcontract dated December 30, 2004, by and between BVT Management
Services, Inc. and Trammell Crow Central Texas Ltd.

 

IV.           List
of Tenants and Prospective Tenants for Which Commissions Will be Payable By
Purchaser Post-Closing if a Lease (or Expansion, Renewal or Extension) is Entered
Into Within 90 Days After Closing Date:

 

None

 

1

 

EXHIBIT “D”

 

FORM OF
ESCROW AGREEMENT

 

THIS ESCROW AGREEMENT (the “Agreement”), made and entered into
this       day of                       ,
2005, by and among KRG Development, LLC (hereinafter referred to as “Purchaser”),
U.S. Retail Income Fund VIII-E, Limited Partnership (hereinafter referred to as
“Seller”), and CHICAGO TITLE INSURANCE COMPANY (hereinafter referred to
as “Escrow Agent”).

 

W
I  T  N  E  S  S  E  T  H:

 

WHEREAS, Purchaser and Seller have entered into that certain Purchase
and Sale Agreement fully executed March       ,
2005 (hereinafter referred to as the “Contract”); and

 

WHEREAS, Section 2.3(a) of said Contract provides for
Purchaser’s payment to Escrow Agent, within three (3) days after Purchaser’s
execution and delivery of the Contract to Seller, of Two Hundred Seventy
Thousand and No/100 Dollars ($270,000.00) as Initial Earnest Money (as defined
in the Contract) to be held and applied by said Escrow Agent in accordance with
this Agreement; and

 

WHEREAS, Section 2.3(b) of the Contract provides for
Purchaser’s payment to Escrow Agent, no later than three (3) days after
the expiration of the “Inspection Period” (as defined in the Contract) of the
additional sum of Two Hundred Twenty Five Thousand and No/100 Dollars
($225,000.00) as the Additional Earnest Money (as defined in the Contract); and

 

WHEREAS, the parties hereto desire to set forth the terms and
conditions of Escrow Agent’s holding, investment and disbursement of the Escrow
Funds (as hereinafter defined).

 

NOW, THEREFORE, for and in consideration of the agreements set forth in
the Contract and the mutual covenants set forth herein, the parties hereto,
intending to be legally bound, hereby agree as follows:

 

1.             Escrow
Agent does hereby acknowledge receipt of a check or wire transfer, payable to
the order of Escrow Agent, in the amount of Two Hundred Seventy Thousand and
No/100 Dollars ($270,000.00) as the Initial Earnest Money (as defined in the
Contract).  Said Initial Earnest Money,
together with any Additional Earnest Money actually deposited by Purchaser with
Escrow Agent pursuant to the terms of the Contract, all interest and other
income earned on the Initial Earnest Money, any Additional Earnest Money and
interest thereon being herein referred to as the “Escrow Funds”.  Escrow Agent hereby agrees to hold,
administer, and disburse the Escrow Funds pursuant to this Agreement and the
Contract.  Escrow Agent shall invest the
Escrow Funds in an interest-bearing account. 
All interest or other income shall be earned for the account of
Purchaser and shall be held, invested and disbursed as a part of the Escrow
Funds hereunder.  Purchaser’s Federal
Identification Number for purposes of this Agreement is 35-2020998.  Escrow Agent’s fee, if any, for services
rendered hereunder shall be paid one-half (1/2) by Purchaser and one-half (1/2)
by Seller.

 

2

 

2.             At
such time as Escrow Agent receives written notice from either Purchaser or
Seller, or both, setting forth the identity of the party to whom such Escrow
Funds (or portions thereof) are to be disbursed and further setting forth the
specific section or paragraph of the Contract pursuant to which the
disbursement of such Escrow Funds (or portions thereof) is being requested,
Escrow Agent shall disburse such Escrow Funds pursuant to such notice; provided,
however, that if such notice is given by either Purchaser or Seller but
not both, Escrow Agent shall (i) promptly notify the other party (either
Purchaser or Seller, as the case may be) that Escrow Agent has received a
request for disbursement, and (ii) withhold disbursement of such Escrow
Funds for a period of ten (10) days after receipt of such notice of
disbursement and if Escrow Agent receives written notice from either Purchaser
or Seller within said ten (10) day period which notice countermands the
earlier notice of disbursement, then Escrow Agent shall withhold such
disbursement until both Purchaser and Seller can agree upon a disbursement of
such Escrow Funds.  Purchaser and Seller
hereby agree to send to the other, pursuant to Paragraph 6 below, a
duplicate copy of any written notice sent to Escrow Agent and requesting any
such disbursement or countermanding a request for disbursement.

 

3.             In
performing any of its duties hereunder, Escrow Agent shall not incur any
liability to anyone for any damages, losses, or expenses, except for willful
default, gross negligence, fraud or breach of trust, and it shall accordingly
not incur any such liability with respect to (i) any action taken or
omitted in good faith upon advice of its legal counsel given with respect to
any questions relating to the duties and responsibilities of Escrow Agent under
this Agreement, or (ii) any action taken or omitted in reliance upon any
instrument, including any written notice or instruction provided for in this
Agreement, not only as to its due execution and the validity and effectiveness
of its provisions but also as to the truth and accuracy of any information
contained therein, which Escrow Agent shall in good faith believe to be
genuine, to have been signed or presented by a proper person or persons, and to
conform with the provisions of this Agreement.

 

4.             Notwithstanding
the provisions of Paragraph 2 above, in the event of a dispute between
Purchaser and Seller sufficient in the sole discretion of Escrow Agent to
justify its doing so or in the event that Escrow Agent has not disbursed the
Escrow Funds on or before the date which is six (6) months from the date
hereof, Escrow Agent shall be entitled to tender the Escrow Funds into the
registry or custody of any court of competent jurisdiction, together with such
legal pleadings as it may deem appropriate, and thereupon be discharged from
all further duties and liabilities under this Agreement.  Any such legal action may be brought in such
court as Escrow Agent shall determine to have jurisdiction thereof.

 

5.             Purchaser
and Seller hereby agree to indemnify and hold Escrow Agent harmless against any
and all losses, claims, damages, liabilities, and expenses, including, without
limitation, reasonable costs of investigation and legal counsel fees, which may
be imposed upon Escrow Agent or incurred by Escrow Agent in connection with the
performance of its duties hereunder, including, without limitation, any
litigation arising from this Agreement or involving the subject matter hereof.

 

6.             Wherever
any notice or other communication is required or permitted hereunder, such notice
or other communication shall be in writing and shall be delivered by overnight

 

3

 

courier, hand
delivery, or sent by U.S. registered or certified mail, return receipt
requested, postage prepaid, to the addresses set out below or at such other
addresses as are specified by written notice delivered in accordance herewith:

 

	
  PURCHASER:

  	
  KRG Development, LLC

  
	
   

  	
  30 S. Meridian Street

  
	
   

  	
  Suite 1100

  
	
   

  	
  Indianapolis, Indiana 46204

  
	
   

  	
  Attention: Daniel R. Sink

  
	
   

  	
  Facsimile: (317) 577-5605

  
	
   

  	
   

  
	
  SELLER:

  	
  BVT Institutional
  Investments, Inc.

  
	
   

  	
  3350 Riverwood Parkway

  
	
   

  	
  Suite 1500

  
	
   

  	
  Atlanta, Georgia 30339

  
	
   

  	
  Attention: Brad Garner

  
	
   

  	
  Facsimile: (770) 618-3567

  
	
   

  	
   

  
	
  with a copy to:

  	
  McGuireWoods LLP

  
	
   

  	
  1170 Peachtree Street,
  N.E.

  
	
   

  	
  Suite 2100

  
	
   

  	
  Atlanta, Georgia 30309

  
	
   

  	
  Attn: Stephen D.
  Peterson

  
	
   

  	
  Facsimile: (404) 443-5764

  
	
   

  	
   

  
	
   

  	
   

  
	
  ESCROW
  AGENT:

  	
  Chicago Title Insurance
  Company

  
	
   

  	
  101 W. Ohio Street, Suite 1100

  
	
   

  	
  Indianapolis, Indiana
  46204

  
	
   

  	
  Attention: Alan Kolb

  
	
   

  	
  Facsimile: (317) 684-3843

  

 

Any notice or other communication (i) mailed as hereinabove
provided shall be deemed effectively given or received on the third (3rd)
business day following the postmark date of such notice or other communication,
(ii) sent by overnight courier or by hand shall be deemed effectively
given or received upon receipt, and (iii) sent by facsimile transmission
shall be deemed effectively given or received on the first business day after
the day of transmission of such notice and confirmation of such transmission.

 

7.             This
Agreement shall be binding upon and shall inure to the benefit of the parties
hereto and their respective heirs, executors, administrators, personal
representatives, successors, and assigns. 
Any and all rights granted to any of the parties hereto may be exercised
by their agents or personal representatives.

 

8.             Time is of the essence of this
Agreement.

 

4

 

9.             If
proceedings shall be instituted before any court of competent jurisdiction for
the resolution of any dispute arising under this Agreement between any parties
hereto, then upon final resolution of such dispute, the prevailing party in
such dispute shall be promptly paid by the nonprevailing party therein all of
such prevailing party’s attorneys’ fees and expenses, court costs and costs of
appeal actually incurred in connection with such proceeding.

 

10.           This
Agreement is governed by and is to be construed under the laws of the State of
Georgia and may be executed in several counterparts, each of which shall be
deemed an original, and all such counterparts together shall constitute one and
the same instrument.

 

[Signatures
begin on next page]

 

5

 

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

 

	
   

  	
  SELLER:

  
	
   

  	
   

  
	
   

  	
  U.S. RETAIL INCOME FUND
  VIII-E, LIMITED

  PARTNERSHIP, a Delaware limited partnership

  
	
   

  	
   

  
	
   

  	
  By:  BVT Institutional Investments, Inc., a
  Georgia

  corporation, its general partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  PURCHASER:

  
	
   

  	
   

  
	
   

  	
  KRG DEVELOPMENT, LLC,
  an Indiana limited

  liability company

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ESCROW AGENT:

  
	
   

  	
   

  
	
   

  	
  CHICAGO TITLE INSURANCE
  COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (CORPORATE SEAL)

  	
   

  
						

 

6

 

EXHIBIT “E”

 

LIST OF
EXISTING ENVIRONMENTAL REPORTS

 

Phase I Environmental
Site Assessment prepared by HBC/Terracon dated February 13, 2003.

 

1

 

EXHIBIT “F”

 

RENT ROLL

 

1

 

EXHIBIT “G”

 

EXCEPTION
SCHEDULE

 

Claims of Lien from H.W.
Wahlers, Inc. filed in Comal County, Texas in the amount of $4,169.27 for
labor and materials provided for Dr. Greg Watson, tenant at Plaza Volente
Shopping Center.

 

Notice of Claim of
Mechanic’s Lien filed by ISC against a subcontractor for the Washington Mutual
buildout in the amount of $4,191.10.

 

Notice of Claim of
Mechanic’s Lien filed by Southwestern Construction Services against the
contractor for JPMorgan Chase in the amount of $11,532.50.

 

Notice of Claim of
Mechanic’s Lien filed by Anchor-Ventana Glass for labor and materials supplied
to Alliance General Contracting in the amount of $1,550 for PostNet.

 

Claim of Lien filed by
ISC for supplies to J.E. Millard, a subcontractor for the tenant buildout on
the Hollywood Video space, in the amount of $12,037.41.

 

1

 

EXHIBIT “H”

 

LIST OF
OPERATING AGREEMENTS

 

None executed.

 

1

 

EXHIBIT “I”

 

FORM OF TENANT ESTOPPEL
CERTIFICATE

 

[TO BE PROVIDED BY
PURCHASER]

 

1

 

EXHIBIT “A”

 

1.                                      Description
of Subleases and/or Assignments of Tenant’s Interest (if none, then state none)

 

 

2.                                      Amounts
of the Security Deposit Which Have Been Applied by Landlord (if none, then
state none)

 

2

 

EXHIBIT “J”

 

PROPERTY TAX APPEALS

 

None.

 

1

 

EXHIBIT “K”

 

TENANT INDUCEMENT COSTS AND
LEASING COMMISSIONS

RE CURRENT TENANTS FOR WHICH
SELLER IS RESPONSIBLE

 

	
  Tenant

  	
   

  	
  T.I.

  	
   

  	
  L.C.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Papa Johns

  	
   

  	
  20,580

  	
   

  	
   

  	
   

  
	
  Panda Express

  	
   

  	
  31,350

  	
   

  	
   

  	
   

  
	
  Washington Mutual
  Bank

  	
   

  	
  71,100

  	
   

  	
  15,926.40

  	
   

  
	
  Austin Smile
  Center

  	
   

  	
  30,000

  	
   

  	
   

  	
   

  
	
  Great Clips

  	
   

  	
  20,625

  	
   

  	
   

  	
   

  
	
  It’s A Grind

  	
   

  	
  29,926

  	
   

  	
   

  	
   

  
	
  Kaleidoscoops

  	
   

  	
  18,000

  	
   

  	
   

  	
   

  
	
  Nationwide
  Insurance

  	
   

  	
  24,550

  	
   

  	
   

  	
   

  
	
  Oasis Day Spa

  	
   

  	
  51,210

  	
   

  	
   

  	
   

  
	
  Palm Beach Tan

  	
   

  	
  48,000

  	
   

  	
  3,100.00

  	
   

  
	
  Salsarita’s
  Fresh Cantina

  	
   

  	
  51,800

  	
   

  	
  10,320.00

  	
   

  
	
  Jack Brown
  Cleaners

  	
   

  	
  36,705

  	
   

  	
   

  	
   

  

 

1

 

SCHEDULE 1

 

SPECIAL WARRANTY DEED

 

	
  THE STATE OF TEXAS

  	
  §

  
	
   

  	
  §

  
	
  COUNTY OF TRAVIS

  	
  §

  
	
  AND WILLIAMSON

  	
   

  

 

U.S. RETAIL INCOME FUND VIII-E, LIMITED PARTNERSHIP, a
Delaware limited partnership (“Grantor”), for and in consideration of
the sum of Ten and No/100 Dollars ($10.00) and other good and valuable
consideration paid and agreed to be paid as hereinafter provided by KRG
DEVELOPMENT, LLC, an Indiana limited liability company (“Grantee”),
whose mailing address is 30 S. Meridian Street, Suite 1100, Indianapolis,
Indiana 46204, the receipt and sufficiency of which consideration are hereby
acknowledged, and upon and subject to the exceptions, encumbrances, terms and
provisions hereinafter set forth and described, has GRANTED, BARGAINED, SOLD
and CONVEYED, and by these presents does hereby GRANT, BARGAIN, SELL and
CONVEY, unto Grantee Lots 1-6, Block “A”, Plaza Volente Subdivision, a
subdivision in Travis and Williamson County, Texas, according to the map or
plat recorded under Document Number 2003003320 of the Official Public Records
of Travis County, Texas, and Cabinet Y, Slides 134-136 of the Plat Records of
Williamson County, Texas (the “Land”), together with all improvements and
fixtures situated thereon, and all rights, tenements, hereditaments, easements,
privileges and appurtenances pertaining thereto, including Grantor’s interest
(if any) in roads, alleys, streets and rights-of-ways bounding the Land, and
all strips or gores of land adjacent to the Land (collectively, the “Property”).

 

This conveyance is made subject and subordinate to
those encumbrances and exceptions (collectively the “Permitted Exceptions”)
set forth on Exhibit A attached hereto and made a part hereof for
all purposes, but only to the extent that the same affect or relate to the
Property.

 

Taxes on the Property for the year 2005 have been
prorated between Grantor and Grantee, and taxes for 2005 and subsequent years
are assumed by Grantee.

 

TO HAVE AND TO HOLD the Property, subject to the
Permitted Exceptions, as aforesaid, unto Grantee, its successors and assigns,
forever; and Grantor does hereby bind itself, its successors and assigns, to
WARRANT AND FOREVER DEFEND all and singular the Property unto Grantee, its
successors and assigns, against every person whomsoever lawfully claiming or to
claim the same, or any part thereof, by, through or under Grantor, but not
otherwise; subject to the Permitted Exceptions. 
Notwithstanding any other provision of this instrument, it is
acknowledged and agreed that Grantor makes no warranty of any kind, whatsoever,
as to any portion of the Property other than the Land.

 

IN WITNESS WHEREOF, this Special Warranty Deed has
been executed by Grantor on the date of the acknowledgement set forth below, to
be effective for all purposes as of the       day of                  ,
2005.

 

 

	
   

  	
  U.S. RETAIL INCOME FUND VIII-E, LIMITED

  PARTNERSHIP, a Delaware limited partnership

  
	
   

  	
   

  
	
   

  	
  By:

  	
  BVT Institutional Investments, Inc., a

  Georgia corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
					

 

	
  STATE OF TEXAS

  	
  §

  
	
   

  	
  §

  
	
  COUNTY OF TRAVIS

  	
  §

  

 

This instrument was acknowledged before me on the        
day of                        ,
2005, by                        ,
                               of
BVT Institutional Investments, Inc., general partner of U.S. Retail Income
Fund VIII-E, Limited Partnership, on behalf of said corporation and limited
partnerships.

 

	
   

  	
   

  	
   

  
	
   

  	
  Notary Public in and for the

  
	
   

  	
  State of Texas

  

 

 

	
  After Recording Return To:

  
	
   

  
	
  Kite Realty Group

  
	
  30 S. Meridian Street

  
	
  Suite 1100

  
	
  Indianapolis, Indiana 46204

  
	
   

  
	
  Attn:

  	
   

  	
   

  

 

 

Exhibit A

 

Permitted Exceptions

 

1.              Document Nos. 2003234890, 2003274241 and 200300320 of
the Official Public Records of Travis County, Texas.

 

Document
No(s). 2003281036 and 2003281037 of the Official Public Records of Travis
County, Texas and under Document No. 2003120116 of the Official Public
Records of Williamson County, Texas.

 

Cabinet
Y, Slide(s) 134-136 of the Official Public Records of Williamson County, Texas.

 

2.              Standby fees, taxes and assessments by any taxing
authority for the year 2004, and subsequent years.

 

3.              Shortages in area.

 

4.              An undivided 1/2 royalty interest in all oil, gas and
other minerals, together with all rights relating thereto, express or implied,
reserved in instrument recorded in Volume 993, Page 392 of the Deed
Records of Travis County, Texas.

 

5.              The terms, conditions and stipulations set out in that
certain Right of Entry and Possession dated June 16, 1995, recorded in
Volume 12464, Page(s) 1494 of the Real Property Records of Travis County,
Texas.

 

6.              Waterline easement granted to the City of Austin, by
instrument dated October 30, 1995, recorded in Volume 12556, Page 1806
of the Real Property Records of Travis County, Texas.

 

7.              Temporary working space easement granted to the City
of Austin, by instrument dated October 30, 1995, recorded in Volume 12556,
Page 1815 of the Real Property Records of Travis County, Texas.

 

8.              Temporary construction easement granted to the City of
Austin, by instrument dated October 10, 2001, recorded under Document No. 2001076771
of the Official Records of Williamson County, Texas.

 

9.              Water and wastewater easement granted to the City of
Austin, by instrument dated October 10, 2001, recorded under Document No. 2001076772
of the Official Records of Williamson County, Texas. 

 

10.       Any and all easements and building setback lines as
shown on Plat(s) recorded under Document No. 200300320 of the Official
Public Records of Travis County, Texas, and Cabinet Y, Slide(s) 134-136 of the
Official Public Records of Williamson County, Texas.

 

 

11.       The terms, conditions and stipulations set out in that
certain Declaration of Restrictive Covenants Regarding Access and Drainage
dated November 18, 2003, recorded under Document No. 2003281037 of
the Official Public Records of Travis County, Texas and under Document No. 2003120116
of the Official Public Records of Williamson County, Texas.

 

12.       Water line easement granted to the City of Austin, by
instrument dated November 19, 2003, recorded under Document No. 2003281039
of the Official Public Records of Travis County, Texas and under Document No. 2003120114
of the Official Public Records of Williamson County, Texas, and further
affected by instrument dated July 12, 2004, recorded under Document No. 2004135375
of the Official Public Records of Travis County, Texas and under Document No. 2004057442
of the Official Public Records of Williamson County, Texas.

 

13.       Wastewater line easement granted to the City of
Austin, by instrument dated November 19, 2003, recorded under Document No. 2003281038
of the Official Public Records of Travis County, Texas and Document No. 2003120115
of the Official Public Records of Williamson County, Texas.

 

14.       Any and all leases, recorded or unrecorded, with
rights of tenants in possession.

 

15.       Sidewalk easement granted to the City of Austin, by
instrument dated November 18, 2003, recorded under Document No. 2003281040
of the Official Public Records of Travis County, Texas.

 

16.       The terms, conditions and stipulations set out in that
certain Notice Concerning Construction of Improvements dated November 18,
2003, recorded under Document No. 2003281035 of the Official Public
Records of Travis County, Texas.

 

17.       The terms, conditions and stipulations set out in that
certain Lease Agreement dated December 15, 2003, executed by and between
TCCT Development, Inc., as Lessor(s) and HEB Grocery Company, LP, as
Lessee(s), evidenced by Memorandum of Lease recorded under Document No. 2004008667
of the Official Public Records of Travis County, Texas and under Document No. 2004005310
of the Official Public Records of Williamson County, Texas, and further
affected by instrument dated December 5, 2003, recorded under Document No. 2004085633
of the Official Public Records of Travis County, Texas, and under Document No. 2004033256
of the Official Public Records of Williamson County, Texas.

 

18.       The terms, conditions and stipulations set out in that
certain Lease Agreement dated April 20, 2004, executed by and between
Plaza V 620, Ltd., as Lessor(s) and Hollywood Entertainment Corporation, as
Lessee(s), evidenced by Memorandum of Lease recorded under Document No. 2004110573
of the Official Public Records of Travis County, Texas, and further affected by
instrument dated May 7, 2004, recorded under Document No. 2004093513
of the Official Public Records of Travis County, Texas and under Document No. 2004037457
of the Official Public Records of Williamson County, Texas.

 

 

19.       The terms, conditions and stipulations set out in that
certain Lease Agreement dated April 20, 2004, executed by and between
Plaza V 620, Ltd., as Lessor(s) and Hollywood Entertainment Corporation, as
Lessee(s), evidenced by Memorandum of Lease recorded under Document No. 2004140428
of the Official Public Records of Travis County, Texas.

 

20.       Water line easement granted to Anderson Mill MUD, by
instrument dated June 14, 2004, recorded under Document No. 2004116698
of the Official Public Records of Travis County, Texas.   

 

 

SCHEDULE 2

 

FORM OF
ASSIGNMENT AND ASSUMPTION OF LEASES

AND
SECURITY DEPOSITS AND LEASING

COMMISSION
OBLIGATIONS ARISING AFTER CLOSING 

 

ASSIGNMENT AND ASSUMPTION OF
LEASES AND SECURITY DEPOSITS

 

THIS ASSIGNMENT AND ASSUMPTION OF LEASES AND SECURITY DEPOSITS (“Assignment”) is made and entered into as of the         
day of               ,
200   , by and between U.S. Retail Income Fund       ,
Limited Partnership, a Delaware limited partnership (“Assignor”),
and KRG Development, LLC, an Indiana limited liability company (“Assignee”).

 

W I T N E S S E T H:

 

WHEREAS, contemporaneously with
the execution hereof, Assignor has conveyed to Assignee certain real property
commonly known as “                             
Shopping Center” located in                ,
                       
County,                 ,
and more particularly described on Exhibit “A”
attached hereto (the “Property”) ; and

 

WHEREAS, in connection with said
conveyance, Assignor desires to transfer and assign to Assignee all of Assignor’s
right, title and interest in and to
certain leases affecting the Property, together with the security deposits and
future leasing commission obligations associated therewith, and, subject to the
terms and conditions hereof, Assignee desires to assume Assignor’s obligations
in respect of said leases, security deposits and leasing commission
obligations;

 

NOW, THEREFORE, for and in
consideration of the sum of Ten and No/100 Dollars ($10.00) in hand paid to
Assignor by Assignee, Assignee’s purchase of the Property and other good and
valuable consideration, the receipt, adequacy and sufficiency of which are
hereby acknowledged by Assignor and Assignee, Assignor and Assignee hereby
covenant and agree as follows:

 

1.             Assignor hereby
unconditionally and absolutely assigns, transfers, sets over and conveys to
Assignee, without warranty or representation of any kind, express or implied,
except as set forth below and except for any warranty or representation
contained in that certain Purchase and Sale Agreement dated                    
      , 2005, between Assignor and Assignee (the “Contract”), applicable to the property assigned herein, all
of Assignor’s right, title and interest in, to and under (a) those certain
leases set forth on Exhibit “B”
attached hereto and by this reference made a part hereof affecting or relating
to the Property or the improvements thereon (the “Leases”), (b) those certain tenant deposits presently held by
Assignor and enumerated on Exhibit “B”
attached hereto (the “Security Deposits”),
and (c) those certain leasing commission agreements more particularly
described on Exhibit “C” attached hereto
and made a part hereof (the “Commission Agreements”),
subject to the matters more particularly described on Exhibit “D”
attached hereto and made a part hereof.

 

 

2.             Assignee, by
acceptance hereof, hereby assumes and agrees to perform all of Assignor’s
duties and obligations under the Leases arising from and after the date hereof,
including, without limitation, Assignor’s obligations to pay leasing
commissions due and payable in respect of any renewal or expansion of any of
the existing Leases, or any new lease with a tenant under any of the Leases,
after the date hereof pursuant to the Commission Agreements, provided that any
renewal or expansion of any of the Existing Leases, or any new lease with a
tenant under any of the Leases that was entered into after the Effective Date
of the Contract (as defined therein) and prior to the date hereof was approved
(or deemed approved) by Purchaser as required in the Contract.

 

3.             All representations
and warranties of Assignor made in the Contract in respect of the Leases, the
Security Deposits and Commission Agreements, as recertified to Assignee
pursuant to that certain Seller’s Certificate as to Representations of even date
herewith from Assignor to Assignee, shall survive for a period of one (1) year
from the date hereof, and upon the expiration thereof shall be of no further
force or effect except to the extent that with respect to any particular
alleged breach, Assignee shall give Assignor written notice prior to the
expiration of said one (1) year period of such alleged breach with
reasonable detail as to the nature of such breach and files an action against
Assignor with respect thereto within ninety (90) days after the giving of such
notice. Notwithstanding anything to the contrary contained in the Contract or
this Assignment, in no event shall Assignor’s total liability for any such
breach or breaches exceed, in the aggregate, Seven Hundred Fifty Thousand and
No/100 Dollars ($750,000). In no event shall Assignor be liable for, nor shall
Assignee seek, any consequential, indirect or punitive damages; and in no event
whatsoever shall any claim for a breach of any representation or warranty of
Assignor be actionable or payable if the breach in question results from or is
based on a condition, state of facts or other matter which was actually known
to Assignee prior to the date hereof.

 

4.             This Assignment
shall inure to the benefit of and be binding upon Assignor and Assignee, their
respective legal representatives, successors and assigns.  This Assignment may be executed in
counterparts, each of which shall be deemed an original and all of such
counterparts together shall constitute one and the same Assignment.

 

 

IN WITNESS WHEREOF, the duly
authorized representatives of Assignor and Assignee have caused this Assignment
to be properly executed under seal as of this day and year first above written.

 

	
   

  	
  ASSIGNOR:

  
	
   

  	
   

  
	
   

  	
  U.S. RETAIL INCOME FUND       ,
  LIMITED

  PARTNERSHIP, a Delaware limited partnership

  
	
   

  	
   

  
	
   

  	
  By:  BVT
  Institutional Investments, Inc., a Georgia

  corporation, its general partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Its:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  (CORPORATE SEAL)

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ASSIGNEE:

  
	
   

  	
   

  
	
   

  	
  KRG CAPITAL, LLC, an Indiana limited liability

  company

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
							

 

 

EXHIBIT A

 

Legal Description

 

4

 

EXHIBIT B

 

List of Leases and Security
Deposits

 

5

 

EXHIBIT C

 

Lease Commission Agreements

 

6

 

EXHIBIT D

 

Permitted Exceptions

 

7

 

SCHEDULE 3

 

FORM OF
BILL OF SALE TO PERSONAL PROPERTY

 

BILL OF SALE

 

THIS BILL OF SALE (“Bill of Sale”)
is made and entered into as of the           
day of                             ,
200    , by U.S. Retail Income Fund       ,
Limited Partnership, a Delaware limited partnership (“Seller”), for the benefit of KRG Development, LLC, an Indiana
limited liability company (“Purchaser”).

 

W I T N E S S E T H:

 

WHEREAS, contemporaneously with
the execution hereof, Seller has conveyed to Purchaser certain improved real
property commonly known as “                                        
Shopping Center” located in                           ,
                        
County,                           
and more particularly described on Exhibit “A”
attached hereto (the “Property”); and

 

WHEREAS, in connection with said
conveyance, Seller desires to transfer and convey to Purchaser all of Seller’s
right, title and interest in and to certain tangible personal property,
inventory and fixtures located in and used exclusively in connection with the
ownership, maintenance or operation of the Property and the Improvements
thereon;

 

NOW, THEREFORE, for and in
consideration of the sum of Ten and No/100 Dollars ($10.00) in hand paid to
Seller by Purchaser, the premises and other good and valuable consideration,
the receipt, adequacy and sufficiency of which are hereby acknowledged by
Seller and Purchaser, it is hereby agreed as follows:

 

1.             All capitalized
terms not defined herein shall have the meanings ascribed to such terms as set
forth in that certain Purchase and Sale Agreement dated as of                       ,
2005, between Seller and Purchaser (the “Sales Contract”).

 

2.             Seller hereby
unconditionally and absolutely transfers, conveys and sets over to Purchaser,
without warranty or representation of any kind, express or implied, all right,
title and interest of Seller in any and all furniture (including common area
furnishings and interior landscaping items), carpeting, draperies, appliances,
personal property (excluding any computer software which either is licensed to
Seller or Seller deems proprietary), machinery, apparatus and equipment owned
by Seller and currently used exclusively in the operation, repair and
maintenance of the Land and Improvements and situated thereon, including,
without limitation, all of Seller’s right, title and interest in and to those
items of tangible personal property set forth on Exhibit “B”
attached hereto and all books, records and files (excluding any appraisals,
budgets, strategic plans for the Property, internal analyses, information
regarding the marketing of the Property for sale, submissions relating to
Seller’s obtaining of corporate authorization, attorney and accountant work
product, attorney-client privileged documents, or other information in the
possession or control of Seller or Seller’s property manager which Seller deems

 

1

 

proprietary) relating to the Land and Improvements
(the “Personal Property”).  The Personal Property does not include any property owned by tenants, contractors or
licensees.

 

3.             The Personal
Property is hereby transferred and conveyed subject to those certain matters
more particularly described on Exhibit “C”
attached hereto and made a part hereof.

 

4.             This Bill of Sale
shall inure to the benefit of Purchaser, and be binding upon Seller, and their
respective legal representatives, transfers, successors and assigns.

 

IN WITNESS WHEREOF, Seller has caused this Bill of Sale to be executed
under seal as of this day and year first above written.

 

	
   

  	
  U.S. RETAIL INCOME FUND       ,
  LIMITED

  PARTNERSHIP, a Delaware limited partnership

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:  BVT
  Institutional Investments, Inc., a Georgia

  corporation, its general partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
							

 

2

 

Exhibit “A”

 

Legal
Description

 

3

 

Exhibit “B”

 

List of
Personal Property

 

4

 

Exhibit “C”

 

Permitted Encumbrances

 

5

 

SCHEDULE 4

 

FORM OF
ASSIGNMENT AND ASSUMPTION OF OPERATING AGREEMENTS

 

ASSIGNMENT AND ASSUMPTION OF CONTRACTS

 

THIS ASSIGNMENT AND ASSUMPTION OF CONTRACTS (“Assignment”)
is made and entered into as of the           
day of                     ,
200    , by and between U.S. RETAIL
INCOME FUND       , LIMITED PARTNERSHIP, a
Delaware limited partnership (“Assignor”) and
KRG DEVELOPMENT, LLC, an Indiana limited liability company (“Assignee”).

 

W I T N E S S E T H:

 

WHEREAS, contemporaneously with
the execution hereof, Assignor has conveyed to Assignee certain real property
commonly known as “                                  
Shopping Center” in                           ,
                  County,
                        ,
and more particularly described on Exhibit ”A”
attached hereto (the “Property”);
and

 

WHEREAS, in connection with said
conveyance, Assignor desires to transfer and assign to Assignee, to the extent
assignable, all of Assignor’s right, title and interest in and to certain
service contracts related to the Property, and to the extent assignable, all
guaranties and warranties given in connection with the operation, construction,
improvement, alteration or repair of the Property; and Assignee desires to
assume Assignor’s obligations under said service contracts;

 

NOW, THEREFORE, for and in
consideration of the sum of Ten and No/100 Dollars ($10.00) in hand paid to
Assignor by Assignee, the Premises and other good and valuable consideration,
the receipt, adequacy and sufficiency of which are hereby acknowledged by
Assignor and Assignee, Assignor and Assignee hereby covenant and agree as
follows:

 

1.             Assignor hereby
unconditionally and absolutely assigns, transfers, sets over and conveys to
Assignee, to the extent assignable, and without warranty or representation of
any kind, express or implied, except as set forth below and except for any
warranty or representation contained in that certain Purchase and Sale
Agreement dated                       
    , 2005, between Assignor and Assignee, (the “Contract”) applicable to the property assigned herein, all
of Assignor’s right, title and interest in, to and under those certain
contracts set forth on Exhibit ”B”
attached hereto and by this reference made a part hereof (the “Service Contracts”), subject to the matters set forth on Exhibit ”C” attached hereto and by this reference made
a part hereof.

 

2.             Assignee, by
acceptance hereof, hereby assumes and agrees to perform all of Assignor’s
duties and obligations under the Service Contracts arising from and after the
date hereof.

 

1

 

3.             All representations
and warranties of Assignor made in the Contract in respect of the Service
Contracts, as recertified to Assignee pursuant to that certain Seller’s
Certificate as to Representations of even date herewith from Assignor to
Assignee, shall survive for a period of one (1) year from the date hereof,
and upon the expiration thereof shall be of no further force or effect except
to the extent that with respect to any particular alleged breach, Assignee
shall give Assignor written notice prior to the expiration of said one (1) year
period of such alleged breach with reasonable detail as to the nature of such
breach and files an action against Assignor with respect thereto within ninety
(90) days after the giving of such notice. Notwithstanding anything to the
contrary contained in the Contract or this Assignment, in no event shall
Assignor’s total liability for any such breach or breaches exceed, in the
aggregate, Seven Hundred Fifty Thousand and No/100 Dollars ($750,000). In no
event shall Assignor be liable for, nor shall Assignee seek, any consequential,
indirect or punitive damages; and in no event whatsoever shall any claim for a
breach of any representation or warranty of Assignor be actionable or payable
if the breach in question results from or is based on a condition, state of
facts or other matter which was actually known to Assignee prior to the date
hereof.

 

4              This Assignment
shall inure to the benefit and be binding upon Assignor and Assignee and their
respective legal representatives, successors and assigns.

 

IN WITNESS WHEREOF, the duly authorized representatives of Assignor and
Assignee have caused this Assignment to be properly executed under seal as of
this day and year first above written.

 

	
   

  	
  ASSIGNOR:

  
	
   

  	
   

  
	
   

  	
  U.S. RETAIL INCOME FUND       ,
  LIMITED

  PARTNERSHIP, a Delaware limited partnership

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:  BVT
  Institutional Investments, Inc., a Georgia

  corporation, its general partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

2

 

	
   

  	
  ASSIGNEE:

  
	
   

  	
   

  
	
   

  	
  KRG DEVELOPMENT, LLC, an
  Indiana

  limited liability company

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

3

 

Exhibit A

 

Legal Description

 

4

 

Exhibit B

 

Assigned Contracts

 

None

 

5

 

Exhibit C

 

Permitted Exceptions

 

6

 

SCHEDULE 4.1(M)

 

DISCLOSURE
OF CONDEMNATION

 

 

SCHEDULE 5

 

FORM OF
GENERAL ASSIGNMENT OF

SELLER’S
INTEREST IN INTANGIBLE PROPERTY

 

GENERAL ASSIGNMENT

 

THIS GENERAL ASSIGNMENT (“Assignment”)
is made and entered into as of the           
day of                     ,
2005 by U.S. Retail Income Fund     , Limited Partnership a
Delaware limited partnership (“Assignor”) to KRG Development, LLC, an Indiana limited
liability company (“Assignee”).

 

W I T N E S S E T H:

 

WHEREAS, contemporaneously with
the execution hereof, Assignor has conveyed to Assignee certain real property
commonly known as “                                        
Shopping Center” located in                           ,
                            
County,                           ,
and more particularly described on Exhibit ”A”
attached hereto and made a part hereof (the “Property”);
and

 

WHEREAS, in connection with said
conveyance, Assignor desires to transfer and assign to Assignee all of Assignor’s
right, title and interest (if any) in
and to all assignable trade names, entitlements and other intangible property
used and owned by Assignor (if any) in connection with the Property, subject to
the matters set forth on Exhibit ”B”
attached hereto and made a part hereof;

 

NOW, THEREFORE, for and in
consideration of the sum of Ten and No/100 Dollars ($10.00) in hand paid to
Assignor by Assignee, the premises and other good and valuable consideration,
the receipt, adequacy and sufficiency of which are hereby acknowledged by
Assignor and Assignee, Assignor and Assignee hereby covenant and agree as
follows:

 

1.             Assignor hereby
unconditionally and absolutely assigns, transfers, sets over and conveys to
Assignee, to the extent assignable, and without warranty or representation of
any kind, express or implied, except as set forth below and except for any
warranty or representation contained in that certain Purchase and Sale
Agreement dated as of                       
    , 2005, between Assignor and Assignee (the “Contract”) applicable to the property assigned herein, all
of Assignor’s right, title and interest (if any) in and to all intangible
property, if any, owned by Assignor related to the real property and
improvements constituting the Property (excluding any computer software which
either is licensed to Assignor or Assignor deems proprietary), including,
without limitation, Assignor’s rights and interests in and to the following (i) the
name “                                            
Shopping Center”, (ii) all assignable plans and specifications and other
architectural and engineering drawings for the Land and Improvements (as
defined in the Contract); (iii) all assignable warranties or guaranties
given or made in respect of the Improvements or Personal Property (as defined
in the Contract); and (iv) all transferable consents, authorizations,
variances or waivers, licenses, permits and approvals from any

 

 

governmental or quasi-governmental agency, department,
board, commission, bureau or other entity or instrumentality solely in respect
of the Land or Improvements.

 

2.             All representations
and warranties of Assignor made in the Contract in respect of the Intangible
Property (as defined in the Contract), as recertified to Assignee pursuant to
that certain Seller’s Certificate as to Representations of even date herewith
from Assignor to Assignee, shall survive for a period of one (1) year from
the date hereof, and upon the expiration thereof shall be of no further force
or effect except to the extent that with respect to any particular alleged
breach, Assignee shall give Assignor written notice prior to the expiration of
said one (1) year period of such alleged breach with reasonable detail as
to the nature of such breach and files an action against Assignor with respect
thereto within ninety (90) days after the giving of such notice.
Notwithstanding anything to the contrary contained in the Contract or this
Assignment, in no event shall Assignor’s total liability for any such breach or
breaches exceed, in the aggregate, Seven Hundred Fifty Thousand and No/100
Dollars ($750,000). In no event shall Assignor be liable for, nor shall
Assignee seek, any consequential, indirect or punitive damages; and in no event
whatsoever shall any claim for a breach of any representation or warranty of
Assignor be actionable or payable if the breach in question results from or is
based on a condition, state of facts or other matter which was actually known
to Assignee prior to the date hereof.

 

3.             This Assignment
shall inure to the benefit and be binding upon Assignor and Assignee and their
respective legal representatives, successors and assigns.

 

IN WITNESS WHEREOF, the duly
authorized representative of Assignor has caused this Assignment to be properly
executed under seal as of this day and year first above written.

 

	
   

  	
  ASSIGNOR:

  
	
   

  	
   

  
	
   

  	
  U.S. RETAIL INCOME FUND       ,
  LIMITED

  PARTNERSHIP, a Delaware limited partnership

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:  BVT Institutional Investments, Inc., a
  Georgia

  corporation, its general partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

2

 

Exhibit “A”

 

Legal Description

 

3

 

Exhibit “B”

 

Permitted Exceptions

 

4

 

SCHEDULE 6

 

FORM OF
SELLER’S AFFIDAVIT

(FOR
PURCHASER’S TITLE INSURANCE PURPOSES)

 

SELLER’S
AFFIDAVIT

 

STATE OF GEORGIA

 

COUNTY OF COBB

 

Personally appeared before me, the undersigned deponent who being duly
sworn, deposes and says on oath the following to the best of his knowledge and
belief:

 

1.             That
the undersigned is the general partner of U.S. Retail Income Fund       ,
Limited Partnership, a Delaware limited partnership (hereinafter referred to as
“Owner”) and as such general partner of
the Owner, the undersigned has knowledge of the facts sworn to in this
Affidavit.

 

2.             That
Owner is the owner of certain real property located in                               
County,                               ,
being described on EXHIBIT A,
attached hereto and made a part hereof (hereinafter referred to as the “Property”), subject to those matters set forth on EXHIBIT B, attached hereto and made a part hereof.

 

3.             That
Owner is in possession of the Property, and to the best knowledge and belief of
the undersigned, no other parties have any claim to possession of the Property,
except as set forth on EXHIBIT B
hereto.

 

4.             That the
undersigned is not aware of and has received no notice of any pending suits,
proceedings, judgments, bankruptcies, liens or executions against the Owner
which affect title to the Property except for any matters set forth on EXHIBIT B-1 hereto.

 

5.             That except as may
be set forth on EXHIBIT B hereto, there are
no unpaid or unsatisfied security deeds, mortgages, claims of lien, special
assessments for sewer or streets, or ad valorem taxes which constitute a lien
against the Property or any part thereof.

 

6.             That, except as may
be set forth on EXHIBIT C attached hereto and
made a part hereof, no improvements or repairs have been made upon the Property
at the instance of Owner within the ninety-five (95) days immediately preceding
the date hereof for which the cost has not been paid; and, except as may be set
forth on EXHIBIT C hereto, there are no
outstanding bills for labor or materials used in making improvements or repairs
on the Property at the instance of Owner or for services of architects,
surveyors, or engineers incurred in connection therewith at the instance of
Owner.

 

1

 

7.             That Owner is not a
foreign person, a foreign corporation, foreign partnership, foreign trust or
foreign estate, as those terms are defined in the Internal Revenue Code.  The federal employer identification number of
the Owner is                               
and Owner’s address is 3350 Riverwood Parkway, Suite 1500, Atlanta,
Georgia 30339.  This statement is made by
the undersigned in compliance with Section 1445 of the Internal Revenue
Code to exempt any transferee of the Property from withholding the tax required
upon a foreign transferor’s disposition of a U.S. real property interest

 

8.             That, except for
NewBridge Retail Advisors (hereinafter referred to as “Broker”)
engaged by Owner in connection with the sale of the Property to KRG
Development, LLC, an Indiana limited liability company (hereinafter referred to
as “Purchaser”) and those certain leasing
agents (hereinafter referred to as the “Leasing Agents”)
set forth on EXHIBIT D attached hereto and
made a part hereof in connection with certain brokers’ commission agreements,
Owner has not engaged any “broker’s” services (as defined in O.C.G.A. § 44-14-601)
with regard to the purchase, sale, management, lease, option or other
conveyance of any interest in the Property; as to Broker, the Closing Statement
executed in connection with the sale of the Property to Purchaser reflects
payment in full satisfaction of all amounts owed to Broker with respect to the
Property; as to the Leasing Agents, all amounts owed to the Leasing Agents
through the date hereof have been paid in full as of the date hereof; and as of
the date hereof, Owner has not received any notice of lien from Broker, any of
the Leasing Agents or any other real estate broker, salesman, agent or similar
person relating to the Property.

 

9.             That to Owner’s
knowledge there are no boundary disputes affecting the Property.

 

10.           That this Affidavit
is made to induce Chicago Title Insurance Company to insure title to the
Property, without exception other than as set forth on EXHIBIT B
hereto, relying on information in this document.

 

	
  Sworn to and subscribed
  before me,

  	
  BVT Institutional
  Investments, Inc.

  
	
   

  	
   

  
	
  this         
  day of                         ,
  200    .

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Notary Public

  	
   

  
	
   

  	
   

  
	
  My Commission Expires:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  (NOTARIAL SEAL)

  	
   

  
							

 

2

 

EXHIBIT A

 

Legal Description

 

3

 

EXHIBIT B

 

Existing
Encumbrances

 

4

 

EXHIBIT B-1

 

List of any
Pending Actions regarding Tenant Matters

 

5

 

EXHIBIT C

 

List of any
Contractors, Materialmen or Suppliers Not Yet Paid in Full

 

6

 

EXHIBIT D

 

Leasing Commission
Agreements

 

7

 

SCHEDULE 7

 

FORM OF
SELLER’S CERTIFICATE

(AS TO
SELLER’S REPRESENTATIONS AND WARRANTIES)

 

SELLER’S CERTIFICATE AS TO
REPRESENTATIONS

 

THIS SELLER’S CERTIFICATE AS TO REPRESENTATIONS (this
“Certificate”) is given and made by
U.S. Retail Income Fund VIII-E, Limited Partnership a Delaware limited
partnership (“Seller”), this       
day of                             ,
200    , for the benefit of KRG Development, LLC, an
Indiana limited liability company (“Purchaser”).

 

Pursuant to the provisions of that certain Purchase and Sale Agreement,
dated as of                       
      , 2005, between Seller and KRG Development,
LLC (the “Contract”), which has since been
assigned to Purchaser, for the purchase and sale of certain real property
commonly known as Plaza Volente Shopping Center (the “Property”),
Seller certifies that except as may be set forth to the contrary in EXHIBIT ”B” attached hereto and made a part hereof, all
of the representations and warranties of Seller contained in the Contract
remain true and correct in all material respects as of the date hereof; and

 

The representations and warranties contained herein shall survive for a
period of one (1) year after the date hereof, and upon the expiration
thereof shall be of no further force or effect except to the extent that with
respect to any particular alleged breach, Purchaser shall give Seller written
notice prior to the expiration of said one (1) year period of such alleged
breach with reasonable detail as to the nature of such breach and files an
action against Seller with respect thereto within ninety (90) days after the
giving of such notice. Notwithstanding anything to the contrary contained in
the Contract or this Certificate, in no event shall Seller’s total liability
for any such breach or breaches exceed, in the aggregate, Seven Hundred Fifty
Thousand and No/100 Dollars ($750,000). In no event shall Seller be liable for,
nor shall Purchaser seek, any consequential, indirect or punitive damages; and
in no event whatsoever shall any claim for a breach of any representation or
warranty of Seller be actionable or payable if the breach in question results
from or is based on a condition, state of facts or other matter which was
actually known to Purchaser prior to the date hereof.

 

[signatures begin on next page]

 

1

 

IN WITNESS WHEREOF, Seller has caused this Certificate
to be executed by its duly authorized representative as of the day and year
first above written.

 

 

	
   

  	
  U.S. RETAIL INCOME FUND VIII-E,

  LIMITED PARTNERSHIP, a Delaware limited

  partnership

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:  BVT Institutional Investments, Inc., a
  Georgia

  corporation, its general partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

2

 

EXHIBIT “A”

 

LEGAL DESCRIPTION

 

3

 

EXHIBIT “B”

 

EXCEPTIONS TO REPRESENTATIONS AND
WARRANTIES

 

4

 

SCHEDULE 8

 

FORM OF
SELLER’S FIRPTA AFFIDAVIT

 

 

CERTIFICATION
OF NON-FOREIGN STATUS

 

Section 1445 of the Internal Revenue Code provides that a
transferee of a U.S. real property interest must withhold tax if the
transferor is a foreign person.  To inform the transferee that withholding
of tax is not required upon the disposition of a U.S. real property
interest by U.S. Retail Income Fund     , Limited
Partnership, a Delaware limited partnership (the “Seller”), the Seller hereby
certifies as follows:

 

1.             The
Seller is not a foreign corporation, foreign partnership, foreign trust, or
foreign estate (as those terms are defined in the Internal Revenue Code and
Income Tax Regulations);

 

2.             The
Seller’s U.S. employer identification number is                               ;
and

 

3.             The
Seller’s office address is 3350 Riverwood Parkway, Suite 1500, Atlanta,
Georgia 30339.

 

The undersigned understands that this Certification may be disclosed to
the Internal Revenue Service by transferee and that any false statement
contained herein could be punished by fine, imprisonment, or both.

 

This Certificate is made with the knowledge that KRG Development, LLC,
an Indiana limited liability company, will rely upon this Certificate in
purchasing that certain real property from Seller more particularly described
on Exhibit A attached hereto.

 

Under penalties of perjury I declare that I have examined this
Certification and to the best of my knowledge and belief, it is true, correct
and complete, and I further declare that I have authority to sign this document
on behalf of the Seller.

 

	
  Date:                                 ,
  200    

  	
  U.S. Retail Income Fund
        , Limited

  Partnership, a Delaware limited partnership

  
	
   

  	
   

  
	
   

  	
  By: BVT Institutional
  Investments, Inc., a

  Georgia corporation, its general partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

1

 

THIS CERTIFICATION MUST BE RETAINED UNTIL THE END OF THE FIFTH TAXABLE
YEAR FOLLOWING THE TAXABLE YEAR IN WHICH THE TRANSFER TAKES PLACE.

 

2

 

SCHEDULE 10

 

FORM OF
PURCHASER’S CERTIFICATE

(AS TO
PURCHASER’S REPRESENTATIONS AND WARRANTIES)

 

PURCHASER’S CERTIFICATE AS TO
REPRESENTATIONS

 

THIS PURCHASER’S CERTIFICATE AS TO REPRESENTATIONS
(this “Certificate”)
is given and made by KRG Capital, LLC, an Indiana limited liability company (“Purchaser”), this        day
of                             ,
200    , for the benefit of U.S. Retail Income Fund VIII-E,
Limited Partnership a Delaware limited partnership (“Seller”).

 

Pursuant to the provisions of that certain Purchase and Sale Agreement,
dated as of                       ,
2005, between Seller and Purchaser (the “Contract”),
for the purchase and sale of certain real property commonly known as Plaza
Volente Shopping Center (the “Property”),
Purchaser certifies that except as may be set forth to the contrary in EXHIBIT ”B” attached hereto and made a part hereof, all
of the representations and warranties of Purchaser contained in the Contract
remain true and correct in all material respects as of the date hereof; and

 

The representations and warranties contained herein shall survive for a
period of one (1) year after the date hereof, and upon the expiration
thereof shall be of no further force or effect except to the extent that with
respect to any particular alleged breach, Seller shall give Purchaser written
notice prior to the expiration of said one (1) year period of such alleged
breach with reasonable detail as to the nature of such breach and files an
action against Purchaser with respect thereto within ninety (90) days after the
giving of such notice.

 

IN WITNESS WHEREOF, Purchaser has caused this Certificate to be
executed by its duly authorized representative as of the day and year first
above written.

 

	
   

  	
  “PURCHASER”

  
	
   

  	
   

  
	
   

  	
  KRG DEVELOPMENT, LLC, an Indiana limited liability

  company

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  (CORPORATE SEAL)

  	
   

  
						

 

1

 

EXHIBIT “A”

 

LEGAL DESCRIPTION

 

2

 

EXHIBIT “B”

 

EXCEPTIONS TO REPRESENTATIONS AND
WARRANTIES

 

3

 

SCHEDULE 11

 

FORM OF
SELLER’S ESTOPPEL

AS TO
TENANTS)

 

LANDLORD ESTOPPEL CERTIFCATE

 

                              ,
200    

 

KRG Development, LLC

30 S. Meridian, Suite 1100

Indianapolis, Indiana  46204

 

	
  RE:

  	
  Lease:

  	
  Lease dated                               between
                                                    ,

  as original or successor landlord (“Landlord”), and
                                                                      
  (“Tenant”), as the same may have been amended by                                                 
  (the “Lease”)

  
	
   

  	
   

  	
   

  
	
   

  	
  Premises:

  	
   

  
	
   

  	
  Commencement Date:

  	
   

  	
   

  
	
   

  	
  Expiration Date:

  	
   

  	
   

  
	
   

  	
  Current Monthly Base Rent:

  	
  $

  	
   

  
	
   

  	
  Current Monthly Additional Rent:

  	
  $

  	
   

  
	
   

  	
  Security Deposit:

  	
  $

  	
   

  
	
   

  	
  Monthly Base Rent Paid Through:

  	
                                ,
  200    

  	
   

  
	
   

  	
  Monthly Additional Rent Paid Through:

  	
                                ,
  200    

  	
   

  
					

 

Ladies and Gentlemen:

 

We are the Landlord under the lease described above, and this
certificate is given pursuant to Section 6.1(d) of that certain
Purchase and Sale Agreement (the “Agreement”) dated                               ,
200    , between Landlord, as Seller, and you, as
Purchaser, with respect to                               .  We give you this certificate to permit you,
your successors or assigns and any mortgagee to rely on it as conclusive
evidence of the matters stated below, in completing the purchase by you or your
assignee, and a possible loan secured by,                               ,
which includes the Premises.  We certify
to you and your successors and assigns and your mortgagee as follows:

 

1.                                       Except
as may be set forth on Exhibit “A” hereto, Tenant is in sole
possession of and is occupying the Premises. 
Except as may be set forth on Exhibit ”A” hereto, Tenant has
not subleased all or any part of the Premises or assigned the Lease, or
otherwise transferred its interest in the Lease or the Premises.

 

1

 

2.             The
Lease is currently in effect and constitutes the entire agreement between
Landlord and Tenant.  The Lease has not
been amended, modified, or changed, whether in writing or orally, except as may
be stated in the Lease.

 

3.             To
Landlord’s knowledge, the Commencement Date and Expiration Date of the term of
the Lease are correctly stated above. 
Tenant has no options or rights and has not exercised any options or
rights to renew, extend, amend, modify, or change the term of the Lease, except
as may be stated in the Lease.

 

4.             The
current monthly Base Rent under the Lease and the current monthly Additional
Rent under the Lease are correctly stated above. Monthly Base Rent and monthly
Additional Rent have been paid through the respective dates stated above.  No rent has been prepaid for more than one
month.  Tenant has not been given any
free rent, partial rent, rebates, rent abatements, or rent concessions of any
kind, except as may be stated in the Lease.

 

5.             Tenant
has deposited the Security Deposit stated above with Landlord, and except as
may be set forth on Exhibit ”B” hereto none of the Security Deposit
has been applied by Landlord to the payment of rent or any other amounts due
under the Lease.

 

6.             To
Landlord’s knowledge, any construction, build-out, improvements, alterations,
or additions to the Premises required under the Lease have been fully completed
in accordance with the plans and specifications described in the Lease.

 

7.             To
Landlord’s knowledge, Landlord has fully performed all of its obligations under
the Lease and is not in default under any term of the Lease.  In addition, to Landlord’s knowledge, no
circumstances exist under which Landlord may be deemed in default merely upon
service of notice or passage of time.

 

8.             Tenant
has not currently asserted to Landlord and, to Landlord’s knowledge, Tenant has
no defenses, set-offs, or counterclaims to the payment of rent and all other
amounts due from Tenant to Landlord under the Lease.

 

9.             Tenant
has not been granted and has not exercised any options or rights of expansion,
purchase, or first refusal concerning the Lease or the Premises, except as may
be stated in the Lease.

 

10.           To
Landlord’s knowledge, Tenant has not filed and is not the subject of any filing
for bankruptcy or reorganization under federal bankruptcy laws.

 

All references herein to the “knowledge of Seller” or “to Seller’s
knowledge” shall have the same meaning and shall be subject to the same
qualifications as set forth in Section 4.2 of the Agreement.

 

This certificate shall terminate and be of no further force and effect,
and Seller shall have no further liability hereunder, upon the receipt by you
or your successors and assigns of a duly executed Tenant Estoppel Certificate
from the Tenant under the Lease with respect to the matters herein contained,
all as set forth in Section 6.1(d) of the Agreement.

 

 

	
  Sincerely,

  
	
   

  
	
  U.S. Retail Income Fund , Limited Partnership

  a Delaware limited partnership

  
	
   

  
	
   

  
	
  By: BVT Institutional Investments, Inc., a
  Georgia corporation, its general partner

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
  Its:

  	
   

  	
   

  

 

 

EXHIBIT “A”

 

1.                                      Description
of Subleases and/or Assignments of Tenant’s Interest (if none, then state none)

 

 

2.                                       Amounts
of the Security Deposit Which Have Been Applied by Landlord (if none, then
state none)Exhibit 10.5

 

PURCHASE
AND SALE AGREEMENT

 

BETWEEN

 

U.S.
RETAIL INCOME FUND IV, LIMITED PARTNERSHIP,

 

(“SELLER”)

 

AND

 

KRG
DEVELOPMENT, LLC (“BUYER”)

 

FOR

 

INDIAN
RIVER SQUARE SHOPPING CENTER, VERO BEACH, FLORIDA,

 

March 3,
2005

 

 

SCHEDULE OF
EXHIBITS

 

	
   

  	
   

  	
   

  	
   

  	
  Reference

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit “A”

  	
   

  	
  Property Description

  	
   

  	
  p. 5

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit “B”

  	
   

  	
  List of Personal
  Property

  	
   

  	
  p. 4

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit “C”

  	
   

  	
  List of Existing
  Commission Agreements and Management Agreement

  	
   

  	
  pp. 2, 4 &
  § 4.1(f)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit “D”

  	
   

  	
  Form of Escrow
  Agreement

  	
   

  	
  p. 2

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit “E”

  	
   

  	
  List of Existing
  Environmental Reports

  	
   

  	
  p. 3

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit “F”

  	
   

  	
  Rent Roll

  	
   

  	
  p. 5

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit “G”

  	
   

  	
  Exception Schedule

  	
   

  	
  § 4.1(i)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit “H”

  	
   

  	
  List of Operating
  Agreements

  	
   

  	
  p. 4

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit “I”

  	
   

  	
  Form of Tenant
  Estoppel Certificate

  	
   

  	
  p. 5 &
  § 6.1(d)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit “J”

  	
   

  	
  Property Tax Appeals

  	
   

  	
  § 4.1(g)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit “K”

  	
   

  	
  Unpaid Tenant
  Inducement Costs and Leasing Commissions re current tenants for which Seller
  is responsible

  	
   

  	
  § 5.4(e)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit “L”

  	
   

  	
  Due Diligence Materials
  Received by Purchaser

  	
   

  	
  § 3.2(a)

  

 

ii

 

SCHEDULE OF
CLOSING DOCUMENTS

 

	
  Schedule 1

  	
   

  	
  Form of
  Special Warranty Deed

  
	
   

  	
   

  	
   

  
	
  Schedule 2

  	
   

  	
  Form of
  Assignment and Assumption of Leases and Security Deposits and Leasing
  Commission Obligations arising after Closing

  
	
   

  	
   

  	
   

  
	
  Schedule 3

  	
   

  	
  Form of
  Bill of Sale to Personal Property

  
	
   

  	
   

  	
   

  
	
  Schedule 4

  	
   

  	
  Form of
  Assignment and Assumption of Operating Agreements

  
	
   

  	
   

  	
   

  
	
  Schedule 5

  	
   

  	
  Form of
  General Assignment of Seller’s Interest in Intangible Property

  
	
   

  	
   

  	
   

  
	
  Schedule 4.1(m)

  	
   

  	
  Disclosure of Condemnation

  
	
   

  	
   

  	
   

  
	
  Schedule 6

  	
   

  	
  Form of
  Seller’s Affidavit (for Purchaser’s Title Insurance Purposes)

  
	
   

  	
   

  	
   

  
	
  Schedule 7

  	
   

  	
  Form of
  Seller’s Certificate (as to Seller’s Representations and Warranties)

  
	
   

  	
   

  	
   

  
	
  Schedule 8

  	
   

  	
  Form of
  Seller’s FIRPTA Affidavit

  
	
   

  	
   

  	
   

  
	
  Schedule 10

  	
   

  	
  Form of
  Purchaser’s Certificate (as to Purchaser’s Representations and Warranties)

  
	
   

  	
   

  	
   

  
	
  Schedule 11
  

  	
   

  	
  Form of
  Seller’s Estoppel (as to Leases) 

  

 

iii

 

PURCHASE
AND SALE AGREEMENT

 

THIS PURCHASE AND SALE AGREEMENT (the “Agreement”), made and
entered into this 3rd day of March, 2005, by and between U.S. RETAIL
INCOME FUND IV, LIMITED PARTNERSHIP, a Delaware limited partnership (“Seller”),
and KRG DEVELOPMENT, LLC, an Indiana limited liability company (“Purchaser”).

 

W
I  T  N  E  S  E  T  H:

 

WHEREAS, Seller desires to sell certain improved real property commonly
known as “Indian River Square Shopping Center” located in Vero Beach, Florida
(the “Shopping Center”), together with certain related personal and intangible
property, and Purchaser desires to purchase such real, personal and intangible
property; and

 

WHEREAS, the parties hereto desire to provide for said sale and
purchase on the terms and conditions set forth in this Agreement;

 

NOW, THEREFORE, for and in consideration of the premises, the mutual
covenants and agreements hereinafter set forth, and for other good and valuable
consideration, the receipt, adequacy, and sufficiency of which are hereby
acknowledged by the parties hereto, the parties hereto hereby covenant and
agree as follows:

 

ARTICLE 1.

DEFINITIONS

 

For purposes of this Agreement, each of the following capitalized terms
shall have the meaning ascribed to such terms as set forth below:

 

“Additional Earnest Money” shall mean the sum of One Hundred
Thousand and No/100 Dollars ($100,000.00 U.S.).

 

“Ancillary Closing Documents” shall mean, collectively, the
Assignment and Assumption of Leases, the Assignment and Assumption of Operating
Agreements, the General Assignment, and the Seller’s Certificate.

 

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

 

“Assignment and Assumption of Operating Agreements” shall mean
the form of assignment and assumption of the Operating Agreements to be
executed and delivered by Seller and Purchaser at the Closing in the form
attached hereto as SCHEDULE 4.

 

“Bill of Sale” shall mean the form of bill of sale to the
Personal Property to be executed and delivered by Seller to Purchaser at the
Closing in the form attached hereto as SCHEDULE 3.

 

1

 

“Broker” shall
have the meaning ascribed thereto in Section 10.1 hereof.

 

“Business Day” shall mean any day other than a Saturday, Sunday
or other day on which banking institutions in the State of Georgia are
authorized by law or executive action to close.

 

“Closing” shall mean the consummation of the purchase and sale
of the Property pursuant to the terms of this Agreement.

 

“Closing Date” shall have the meaning ascribed thereto in Section 2.6
hereof.

 

“Commission Agreements” shall have the meaning ascribed thereto
in Section 4.1(f) hereof, and such agreements are more particularly
described on EXHIBIT “C” attached hereto
and made a part hereof.

 

“Due Diligence Material” shall have the meaning ascribed thereto
in Section 3.7 hereof.

 

“Earnest Money” shall mean the Initial Earnest Money, together
with any Additional Earnest Money actually paid by Purchaser to Escrow Agent
hereunder, and together with all interest which accrues thereon as provided in Section 2.3(c) hereof
and in the Escrow Agreement.

 

“Effective Date” shall mean the last date upon which the
following shall have occurred: (a) Purchaser and Seller shall have
delivered at least two (2) fully executed counterparts of this Agreement
to the other, (b) Purchaser, Seller and Escrow Agent shall have executed
and delivered at least one (1) fully executed counterpart of the Escrow
Agreement to each other party, and (c) Purchaser shall have delivered the
Initial Earnest Money (by federal wire transfer or delivery of Purchaser’s
check made payable to Escrow Agent) to Escrow Agent.

 

“Environmental Law” shall mean any law, ordinance, rule,
regulation, order, judgment, injunction or decree relating to pollution or
substances or materials which are considered to be hazardous or toxic,
including, without limitation, the Resource Conservation and Recovery Act, the
Comprehensive Environmental Response, Compensation and Liability Act, the
Hazardous Materials Transportation Act, the Clean Water Act, the Toxic
Substances Control Act, the Emergency Planning and Community Right to Know Act,
any state and local environmental law, all amendments and supplements to any of
the foregoing and all regulations and publications promulgated or issued
pursuant thereto.

 

“Escrow Agent” shall mean the Title Company, at its office at
Indianapolis, Indiana.

 

“Escrow Agreement”  shall
mean that certain Escrow Agreement in the form attached hereto as EXHIBIT “D” entered into contemporaneously with the
execution and delivery of this Agreement by Seller, Purchaser and Escrow Agent
with respect to the Earnest Money.

 

“Existing Environmental Reports” shall mean those certain
reports, correspondence and related materials, if any, more particularly
described on EXHIBIT “E” attached hereto
and made a part hereof.

 

2

 

“Existing Lender”  shall
have the meaning ascribed thereto in Section 6.2(e) hereof.

 

“Existing Loan”  shall
have the meaning ascribed thereto in Section 6.2(e) hereof.

 

“Existing Survey” shall mean that certain survey with respect to
the Land and the Improvements prepared by R. Mark Pitchford, P.L.S. No. 5062
or Tom Yocom, P.S.M. No. 5653 dated June 19, 1997 as Project No. 94149.11.

 

“FIRPTA Affidavit”  shall
mean the form of FIRPTA Affidavit to be executed and delivered by Seller to
Purchaser at Closing in the form attached hereto as SCHEDULE 8.

 

“First Title Notice” shall have the meaning ascribed thereto in Section 3.4
hereof.

 

“Fountain Oaks Contract” 
shall have the meaning ascribed thereto in Section 6.1(e) hereof.

 

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

 

“Hazardous Substances” shall mean any and all pollutants,
contaminants, toxic or hazardous wastes or any other substances that might pose
a hazard to health or safety, the removal of which may be required or the
generation, manufacture, refining, production, processing, treatment, storage,
handling, transportation, transfer, use, disposal, release, discharge,
spillage, seepage or filtration of which is or shall be restricted,
prohibited or penalized under any Environmental Law (including, without limitation,
lead paint, asbestos, urea formaldehyde foam insulation, petroleum and
polychlorinated biphenyls).

 

“Improvements” shall mean all buildings, structures and
improvements now or on the Closing Date situated on the Land, including without
limitation, all parking areas and facilities, improvements and fixtures located
on the Land.

 

“Initial Earnest Money” shall mean the sum of One Hundred Twenty
Thousand and No/100 Dollars ($120,000.00 U.S.).

 

“Inspection Period” shall mean the period commencing on February 10,
2005 and expiring at 5:00 P.M. Eastern Standard Time on April 15,
2005.

 

“Intangible Property” shall mean all intangible property, if
any, owned by Seller and related to the Land and Improvements, including
without limitation, Seller’s rights and interests, if any, in and to the
following (to the extent assignable):  (i) the
name “Indian River Square Shopping Center”, (ii) all assignable plans and
specifications and other architectural and engineering drawings for the Land
and Improvements; (iii) all assignable warranties or guaranties given or
made in respect of the Improvements or Personal Property; (iv) all
transferable consents, authorizations, variances or waivers, licenses, permits
and approvals from any governmental or quasi-governmental agency, department,
board, commission, bureau or other entity or instrumentality solely in respect
of the Land or Improvements; and (v) all of Seller’s right, title and
interest in and to all assignable Operating Agreements that Purchaser agrees to
assume (or is deemed to have agreed to assume).

 

3

 

“Land” shall mean that certain tract or parcel of real property
located in Indian River County, Florida which is more particularly described on
EXHIBIT “A” attached hereto and
made a part hereof, together with all rights, privileges and easements
appurtenant to said real property, and all right, title and interest of Seller,
if any, in and to any land lying in the bed of any street, road, alley or
right-of-way, open or closed, adjacent to or abutting the Land.

 

“Lease” and “Leases” shall mean all of the leases or
occupancy agreements affecting of Property, including: (i)  those in
effect on the Effective Date which are more particularly identified on EXHIBIT “F” attached hereto, and; (ii) any amended
or new leases entered into pursuant to Section 4.3(a) of this
Agreement, which as of the Closing affect all or any portion of the Land or
Improvements.

 

“Management Agreement” shall have the meaning ascribed thereto
in Section 4.1(f) hereof and is more particularly described on EXHIBIT “C” attached hereto and made a part hereof.

 

“Monetary Objection “ or “Monetary Objections” shall mean
(a) any mortgage, deed to secure debt, deed of trust or similar security
instrument encumbering all or any part of the Property, (b) any mechanic’s,
materialman’s or similar lien (unless resulting from any act or omission of
Purchaser or any of its agents, contractors, representatives or employees), (c) the
lien of ad valorem real or personal property taxes, assessments and
governmental charges affecting all or any portion of the Property which are due
and payable, and (d) any judgment of record against Seller in the county
or other applicable jurisdiction in which the Property is located.

 

“Operating Agreements” shall mean all those certain contracts
and agreements more particularly described on EXHIBIT “H”
attached hereto and made a part hereof relating to the repair,
maintenance or operation of the Land, Improvements or Personal Property which
will extend beyond the Closing Date, including, without limitation, all
equipment leases.

 

“Other Notices of Sale” shall have the meaning ascribed thereto
in Section 5.1(s) hereof.

 

“Permitted Exceptions” shall mean, collectively, (a) liens
for taxes, assessments and governmental charges not yet due and payable or due
and payable but not yet delinquent, (b) the Leases, and (c) such
other easements, restrictions and encumbrances that do not constitute Monetary
Objections and which Purchaser has not objected to, in writing, prior to the
expiration of the Inspection Period.

 

“Personal Property” shall mean all furniture (including common
area furnishings and interior landscaping items), carpeting, draperies,
appliances, personal property (excluding any computer software which either is
licensed to Seller or Seller deems proprietary), machinery, apparatus and
equipment owned by Seller and currently used exclusively in the operation,
repair and maintenance of the Land and Improvements and situated thereon, as generally
described on EXHIBIT “B” attached hereto
and made a part hereof, and all books, records and files (excluding any
appraisals, budgets, strategic plans for the Property, internal analyses,
information regarding the marketing of the Property for sale, submissions
relating to Seller’s obtaining of corporate or partnership authorization,
attorney and accountant work product, attorney-client privileged

 

4

 

documents, or other information in the possession or control
of Seller or Seller’s property manager which Seller deems proprietary) relating
to the Land and Improvements.  The
Personal Property does not include any
property owned by tenants, contractors or licensees, and shall be conveyed by
Seller to Purchaser subject to depletions, replacements and additions in the
ordinary course of Seller’s business.

 

“Property”  shall have the
meaning ascribed thereto in Section 2.1 hereof.

 

“Purchase Price”
shall be the amount specified in Section 2.4 hereof.

 

“Purchaser’s Certificate” shall have the meaning ascribed
thereto in Section 5.2(d) hereof.

 

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

 

“Security Deposits” shall mean any security deposits, rent or
damage deposits, or similar amounts (other than rent paid for the month in
which the Closing occurs) which the Tenants are required to deposit with Seller
pursuant to the Leases (except to the extent that a Tenant may agree in a
Tenant Estoppel Certificate that a security deposit was required under their
lease but not deposited, in whole or part.)

 

“Seller’s Affidavit” shall mean the form of owner’s affidavit to
be given by Seller at Closing to the Title Company in the form attached hereto
as SCHEDULE 6, provided that it is
sufficient to cause the Title Company to delete the standard exceptions to the
final title policy issued from the Title Commitment.

 

“Seller’s Certificate” shall mean the form of certificate to be
executed and delivered by Seller to Purchaser at the Closing with respect to
the truth and accuracy of Seller’s warranties and representations contained in
this Agreement (modified and updated as the circumstances require), in the form
attached hereto as SCHEDULE 7.

 

“Seller’s Estoppel” shall mean the form of estoppel that may be
executed and delivered by Seller at Closing in substantially the form attached
hereto as SCHEDULE 11, as contemplated in Section 6.1(d) hereof.

 

“Survey” and “Surveys” shall have the meaning ascribed
thereto in Section 3.4 hereof.

 

“Taxes” shall have
the meaning ascribed thereto in Section 5.4(a) hereof.

 

“Tenant Estoppel Certificate” or “Tenant Estoppel
Certificates” shall mean certificates to be sought from the tenants under
the Leases in substantially the form attached hereto as EXHIBIT “I”;
provided, however, if any Lease provides for the form or content of an estoppel
certificate from the tenant thereunder, the Tenant Estoppel Certificate with
respect to such Lease may be in the form as called for therein.

 

“Tenant Inducement Costs” shall mean any out-of-pocket payments
required under a Lease to be paid by the landlord thereunder to or for the
benefit of the tenant thereunder which is

 

5

 

in the nature of a tenant inducement, including
specifically, but without limitation, tenant improvement costs, lease buyout
payments, and moving, design, refurbishment and club membership allowances and
costs.  The term “Tenant Inducement Costs”
shall not include loss of income resulting
from any free rental period, it being understood and agreed that Seller shall
bear the loss resulting from any free rental period until the Closing Date and
that Purchaser shall bear such loss from and after the Closing Date.

 

“Tenant Notices of Sale” shall have the meaning ascribed thereto
in Section 5.1(r) hereof.

 

“Title Company”
shall mean Chicago Title Insurance Company.

 

“Title Commitment” shall have the meaning ascribed thereto in Section 3.4
hereof.

 

“Warranty Deed” shall mean the forms of deeds attached hereto as
SCHEDULE 1.

 

ARTICLE 2.

PURCHASE
AND SALE

 

2.1.                            Agreement
to Sell and Purchase.  Subject to
and in accordance with the terms and provisions of this Agreement, Seller
agrees to sell and Purchaser agrees to purchase, the following property
(collectively, the “Property”):

 

(a)                                  the
Land;

 

(b)                                 the
Improvements;

 

(c)                                  all of Seller’s
right, title and interest in and to the Leases, any guaranties of the Leases
and the Security Deposits;

 

(d)                                 the
Personal Property; and

 

(e)                                  the
Intangible Property.

 

2.2.                            Permitted
Exceptions.  The Property shall
be conveyed subject to the matters which are, or are deemed to be, Permitted
Exceptions.

 

2.3.                            Earnest
Money.

 

(a)                                  Within three (3) business
days after Purchaser’s execution and delivery of this Agreement, Purchaser
shall deliver the Initial Earnest Money to Escrow Agent by federal wire
transfer or by Purchaser’s check, payable to Escrow Agent, which Initial
Earnest Money shall be held and released by Escrow Agent in accordance with the
terms of the Escrow Agreement.

 

(b)                                 Within three (3) business
days after the last day of the Inspection Period, Purchaser shall deposit the
Additional Earnest Money with Escrow Agent. 
The parties hereto mutually acknowledge and agree that time is of the
essence in respect of Purchaser’s timely deposit of the Additional Earnest
Money with Escrow Agent and that if Purchaser fails to deposit

 

6

 

the Additional Earnest Money with Escrow Agent in the
time period set forth above, this Agreement shall terminate, and Escrow Agent
shall return the Initial Earnest Money to Purchaser, and neither party hereto
shall have any further rights or obligations hereunder, except those provisions
of this Agreement which by their express terms survive the termination of this Agreement.

 

(c)                                  The Earnest Money
shall be applied to the Purchase Price at the Closing and shall otherwise be
held, refunded, or disbursed in accordance with the terms of the Escrow
Agreement and this Agreement. All interest and other income from time to time
earned on the Initial Earnest Money and the Additional Earnest Money shall be
earned for the account of Purchaser, and shall be a part of the Earnest Money;
and the Earnest Money hereunder shall be comprised of the Initial Earnest
Money, the Additional Earnest Money and all such interest and other income.

 

2.4.                            Purchase
Price. Subject to adjustment and credits as otherwise specified in this
Section 2.4 and elsewhere in this Agreement, the purchase price (the “Purchase
Price”) to be paid by Purchaser to Seller for the Property shall be Sixteen
Million Four Hundred Thousand and 00/100 Dollars ($16,400,000).  The Purchase Price shall be paid by Purchaser
to Seller at the Closing as follows:

 

(a)                                  The
Earnest Money shall be paid by Escrow Agent to Seller at Closing; and

 

(b)                                 An
amount equal to the Purchase Price, less the Earnest Money, shall be paid by
Purchaser to Seller at the Closing by wire transfer of immediately available
federal funds to an account designated by Seller, subject to prorations,
adjustments and credits as otherwise specified in this Agreement..

 

2.5.                            Independent
Contract Consideration. In addition to, and not in lieu of the delivery
to Escrow Agent of the Initial Earnest Money, Purchaser shall deliver to
Seller, concurrently with Purchaser’s execution and delivery of this Agreement
to Seller, Purchaser’s check, payable to the order to Seller, in the amount of
One Hundred and No/100 Dollars ($100.00). 
Seller and Purchaser hereby mutually acknowledge and agree that said sum
represents adequate bargained for consideration for Seller’s execution and
delivery of this Agreement and Purchaser’s right to inspect the Property
pursuant to Article III.  Said sum
is in addition to and independent of any other consideration or payment
provided for in this Agreement and is nonrefundable in all events.

 

2.6.                            Closing.
The consummation of the sale by Seller and purchase by Purchaser of the
Property (the “Closing”) shall be conducted by depositing the closing
deliveries set forth in Article 5 hereof with the Escrow Agent on or
before the date which is the later to occur of (a) thirty (30) days
following the end of the Inspection Period, or (b) such date on which the
Existing Lender has consented to Purchaser’s assumption of the Existing Loan,
provided, however, that in the event that the Existing Lender has not consented
to Purchaser’s assumption of the Existing Loan within sixty (60) days after the
expiration of the Inspection Period, Seller may terminate this Agreement by
providing written notice to the Purchaser, and, so long as Existing Lender’s
failure or refusal to approve Purchaser’s assumption of the Existing Loan does

 

7

 

not result from Purchaser’s violation of the covenant
set forth in Section 4.5 of the Fountain Oaks Contract, Purchaser shall
receive a return of the Earnest Money.

 

ARTICLE 3.

PURCHASER’S
INSPECTION AND REVIEW RIGHTS

 

3.1.                            Due
Diligence Inspections.

 

(a)                                  From and after the
Effective Date until the Closing Date or earlier termination of this Agreement,
Seller shall permit Purchaser and its authorized representatives to inspect the
Property to perform due diligence, soil analysis and environmental
investigations, to examine the records of Seller with respect to the Property,
and make copies thereof, at such times during normal business hours as
Purchaser or its representatives may request. 
All such inspections shall be nondestructive in nature, and specifically
shall not include any physically intrusive testing.  All such inspections shall be performed in
such a manner to minimize any interference with the business of the tenants
under the Leases at the Property and, in each case, in compliance with Seller’s
rights and obligations as landlord under the Leases.  All inspection fees, appraisal fees,
engineering fees and all other costs and expenses of any kind incurred by
Purchaser relating to the inspection of the Property shall be solely Purchaser’s
expense.  Seller reserves the right to
have a representative present at the time of making any such inspection.  Purchaser shall notify Seller not less than
one (1) Business Day in advance of making any such inspection.

 

(b)                                 If the Closing is not
consummated hereunder, Purchaser shall promptly (and as a condition to the
refund of the Earnest Money) deliver copies of all reports, surveys and other
information furnished to Purchaser by third parties in connection with such
inspections to Seller; provided, however, that delivery of such copies and
information shall be without warranty or representation whatsoever, express or
implied, including, without limitation, any warranty or representation as to
ownership, accuracy, adequacy or completeness thereof or otherwise.  This Section 3.1(b) shall survive
the termination of this Agreement.

 

(c)                                  To the extent that
Purchaser or any of its representatives, agents or contractors damages or
disturbs the Property or any portion thereof, Purchaser shall return the same
to substantially the same condition which existed immediately prior to such
damage or disturbance.  Purchaser hereby
agrees to and shall indemnify, defend and hold harmless Seller from and against
any and all expense, loss or damage which Seller may incur (including, without
limitation, reasonable attorney’s fees actually incurred) as a result of any act
or omission of Purchaser or its representatives, agents or contractors, other
than any expense, loss or damage to the extent arising from any act or omission
of Seller during any such inspection and other than any expense, loss or damage
resulting from the discovery or release of any Hazardous Substances at the
Property (other than Hazardous Substances brought on to the Property by
Purchaser or its representatives, agents or contractors, or any release of
Hazardous Substances resulting from the negligence of Purchaser or its
representatives, agents or contractors). 
Said indemnification agreement shall survive the Closing and any earlier
termination of this Agreement. Purchaser shall maintain and shall ensure that
Purchaser’s consultants and contractors maintain commercial general liability
insurance in an amount not less than $1,000,000, combined single limit, and in
form and substance adequate to insure against all

 

8

 

liability of Purchaser and its consultants and
contractors, respectively, and each of their respective agents, employees and
contractors, arising out of inspections and testing of the Property or any part
thereof made on Purchaser’s behalf. 
Purchaser agrees to provide to Seller a certificate of insurance with
regard to each applicable liability insurance policy prior to any entry upon
the Property by Purchaser or its consultants or contractors, as the case may
be, pursuant to this Section 3.1.

 

3.2.                              Seller’s Deliveries to Purchaser; Purchaser’s
Access to Seller’s Property Records.

 

(a)                                  Purchaser
acknowledges receipt of the documents listed on Exhibit L, attached
hereto and made a part hereof and Purchaser further acknowledges that no
additional items are required to be delivered by Seller to Purchaser except for
the following, or as otherwise set forth elsewhere in this Agreement:

 

(i)                                     Copies of current
Property tax bills and assessor’s statements of current assessed value.

 

(ii)                                  Copies
of Property operating statements for the past 24 months.

 

(iii)                               Copies
of utility bills for the Properties (to the extent Seller is billed) for the
past six (6) months.

 

(iii)                               2005 Operating Budget
with respect to the Properties.

 

(iv)                              Copies of all Leases,
guarantees, any amendments and letter agreements relating thereto existing as
of the Effective Date.

 

(v)                                 An aged tenant
receivable report, if any, regarding income from the tenants.

 

(vi)                              Most recent monthly
tenant, tax and CAM billing statements and year end operating expense
reconciliations and general ledger for the past 24 months.

 

(vii)                           All Operating Agreements
currently in place at the Properties.

 

(viii)                        A copy of
Seller’s (or its affiliate’s) current policies of title insurance with respect
to the Land and Improvements, including, if available, copies of all Schedule B-2
exception documents.

 

(ix)                                A
copy of the Existing Survey.

 

(b)                             From
the Effective Date until the Closing Date or earlier termination of this
Agreement, Seller shall allow Purchaser and Purchaser’s representatives, on

 

9

 

reasonable advance notice and during normal business hours, to have
access to Seller’s existing books, records and files relating to the Property
at Seller’s office at 3350 Riverwood Parkway, Suite 1500, Atlanta, Georgia
30339, for the purpose of inspecting and (at Purchaser’s expense) copying the
same, including, without limitation, the materials listed below (to the extent
any or all of the same are in Seller’s possession), subject, however, to the
limitations of any confidentiality or nondisclosure agreement to which Seller
may be bound, and provided that Seller shall not be required to deliver or make
available to Purchaser any appraisals, strategic plans for the Property,
internal analyses, information regarding the marketing of the Property for
sale, submissions relating to Seller’s obtaining of corporate authorization,
attorney and accountant work product, or attorney-client privileged
documents.  Purchaser acknowledges and
agrees, however, that Seller makes no representation or warranty of any nature
whatsoever, express or implied, with respect to the ownership (except with
respect to the Leases), enforceability, accuracy (only with respect to third
party reports), adequacy or completeness (except with respect to the Leases and
Operating Agreements) or otherwise of any of such records, evaluations, data,
investigations, reports, cost estimates or other materials.  If the Closing contemplated hereunder fails
to take place for any reason, Purchaser shall promptly (and as a condition to
the refund of the Earnest Money) return all copies of materials copied from
Seller’s books, records and files relating to the Property.  It is understood and agreed that Seller shall
have no obligation to obtain, commission or prepare any such books, records,
files, reports or studies not now in Seller’s possession.  Subject to the foregoing, Seller agrees to
make available to Purchaser for inspection and copying, without limitation, the
following books, records and files relating to the Property, all to the extent
the same are in Seller’s possession:

 

(i)                                     Tenant
Information.  Copies of the Leases,
guarantees, any amendments, or letter agreements, and any financial statements
or other financial information of any tenants under the Leases (and the Lease
guarantors, if any), written information relative to the tenants’ payment
histories, and tenant correspondence, to the extent Seller has the same in its
possession;

 

(ii)                                  Commission
Agreements.  Copies of the Commission
Agreements;

 

(iii)                               Plans.  All available construction plans and
specifications in Seller’s possession relating to the development, condition,
repair and maintenance of the Property, the Improvements and the Personal
Property;

 

(iv)                              Reports.  Copies of all third party analyses, compilations,
data, studies, reports, or other information or documents relating to the
physical and/or environmental condition of the Property and/or the
Improvements, if any;

 

(v)                                 Permits;
Licenses.  Copies of any permits,
licenses, or other similar documents in Seller’s possession relating to the
use, occupancy or operation of the Property; and

 

10

 

(vi)                              Operating
Costs and Expenses.  All available
records of any operating costs and expenses for the Property in Seller’s
possession.

 

3.3.                            Condition
of the Property.

 

(a)                                  Seller recommends
that Purchaser employ one or more independent engineering and/or environmental
professionals to perform engineering, environmental and physical assessments on
Purchaser’s behalf in respect of the Property and the condition thereof.  Purchaser and Seller mutually acknowledge and
agree that the Property is being sold in an “AS IS” condition and “WITH ALL
FAULTS,” known or unknown, contingent or existing.  Purchaser has the sole responsibility to
fully inspect the Property, to investigate all matters relevant thereto,
including, without limitation, the condition of the Property, and to reach its
own, independent evaluation of any risks (environmental or otherwise) or
rewards associated with the ownership, leasing, management and operation of the
Property.

 

(b)                                 To the fullest extent
permitted by law, Purchaser does hereby unconditionally waive and release
Seller, and its partners, beneficial owners, officers, directors, shareholders
and employees from any present or future claims and liabilities of any nature
arising from or relating to the presence or alleged presence of Hazardous
Substances in, on, at, from, under or about the Property or any adjacent
property, including, without limitation, any claims under or on account of any
Environmental Law, regardless of whether such Hazardous Substances are located
in, on, at, from, under or about the Property or any adjacent property prior to
or after the date hereof, unless such claims or liabilities arise from the
negligent or fraudulent activity of Seller, or activity of Seller in violation
of any Environmental Law.  In addition,
Purchaser does hereby covenant and agree to defend, indemnify, and hold harmless
Seller and its partners, beneficial owners, officers, directors, shareholders
and employees from and against any claims, demands, penalties, fines,
liabilities, settlements, damages, costs or expenses of whatever kind or
nature, known or unknown, existing and future, including any action or proceeding
brought or threatened, or ordered by governmental authorities, relating to any
Hazardous Substances which may be placed or located on the Property after the
date of Closing, unless such claims or liabilities arise from Seller’s acts or
omissions.   The terms and provisions of
this paragraph shall survive the Closing hereunder.

 

3.4.                            Title
and Survey.  Promptly upon
execution of this Agreement, Purchaser may order at its expense, from the Title
Company a preliminary title commitment with respect to the Property (the “Title
Commitment”).  Purchaser shall direct
the Title Company to send a copy of the Title Commitment to Seller.  Promptly upon execution of this Agreement,
Purchaser may arrange, also at its expense, for the preparation of one or more
updates of the Existing Survey (each and together, the “Survey”).  Purchaser likewise shall make copies of any
such Survey available to Seller prior to Closing.  Purchaser shall have until the end of the
Inspection Period to give written notice (the “First Title Notice”) to
Seller of such objections as Purchaser may have to any exceptions to title
disclosed in the Title Commitment or in any Survey or otherwise in Purchaser’s
examination of title.  From time to time
at any time after the First Title Notice and prior to the Closing Date,
Purchaser may give written notice of exceptions to title first appearing of
record after the effective date of any updated title commitment or matters of
survey which would not have been disclosed by an accurate updated examination
of title or preparation of an

 

11

 

updated ALTA survey prior to date of the initial Title
Commitment or the initial Survey.  Seller
shall have the right, but not the obligation (except as to Monetary Objections),
to attempt to remove, satisfy or otherwise cure any exceptions to title to
which the Purchaser so objects.  Within
five (5) Business Days after receipt of Purchaser’s First Title Notice,
Seller shall give written notice to Purchaser informing the Purchaser of Seller’s
election with respect to such objections. 
If Seller fails to give written notice of election within such five (5) Business
Day period, Seller shall be deemed to have elected not to attempt to cure the
objections (other than Monetary Objections). 
If Seller elects to attempt to cure any objections, Seller shall be
entitled to one or more reasonable adjournments of the Closing of up to but not
beyond the thirtieth (30th) day following the initial date set for the Closing
to attempt such cure, but, except for Monetary Objections, Seller shall not be
obligated to expend any sums, commence any suits or take any other action to
effect such cure.  Except as to Monetary
Objections, if Seller elects, or is deemed to have elected, not to cure any
exceptions to title to which Purchaser has objected or if, after electing to
attempt to cure, Seller determines that it is unwilling or unable to remove,
satisfy or otherwise cure any such exceptions, Purchaser’s sole remedy
hereunder in such event shall be either (i) to accept title to the
Property subject to such exceptions as if Purchaser had not objected thereto
and without reduction of the Purchase Price, (ii) if such exceptions are
matters first appearing of record after the date of this Agreement, and arise
by, through or under Seller, to terminate this Agreement, or (iii) to
terminate this Agreement within three (3) Business Days after receipt of
written notice from Seller either of Seller’s election not to attempt to cure
any objection or of Seller’s determination, having previously elected to
attempt to cure, that Seller is unable or unwilling to do so, or three (3) Business
Days after Seller is deemed hereunder to have elected not to attempt to cure
such objections (and upon any such termination under clause (ii) or (iii) above,
Escrow Agent shall return the Earnest Money to Purchaser).  Notwithstanding the above, if such exceptions
mentioned in clause (ii) above were entered into by Seller after the
Effective Date hereof and Purchaser elects to proceed to Closing, Seller shall
have the affirmative obligation to cure such exceptions before Closing and
Purchaser shall not take subject to them. 
Notwithstanding anything to the contrary contained elsewhere in this
Agreement, Seller shall be obligated to cure or satisfy all Monetary Objections
at or prior to Closing, and may use the proceeds of the Purchase Price at
Closing for such purpose.

 

3.5.                            Operating
Agreements.  Seller, without cost
to Purchaser, shall terminate at Closing all Operating Agreements to the extent
any relates to the Property, except for those Operating Agreements, if any,
that Purchaser agrees, prior to Closing, to assume.

 

3.6.                            Termination
of Agreement.  Purchaser shall
have until the expiration of the Inspection Period to determine, in Purchaser’s
sole opinion and discretion, the suitability of the Property for acquisition by
Purchaser or Purchaser’s permitted assignee. 
Purchaser shall have the right to terminate this Agreement at any time
on or before said time and date of expiration of the Inspection Period by
giving written notice to Seller of such election to terminate.  If Purchaser so elects to terminate this
Agreement pursuant to this Section 3.6, Escrow Agent shall pay the Initial
Earnest Money to Purchaser, whereupon, except for those provisions of this
Agreement which by their express terms survive the termination of this
Agreement, no party hereto shall have any other or further rights or
obligations under this Agreement.  Any
termination of this Agreement shall constitute an automatic termination of the
Related Agreements (defined in Section 6.2(e) hereof).  If Purchaser fails to so terminate this
Agreement

 

12

 

prior to the expiration of the Inspection Period,
Purchaser shall have no further right to terminate this Agreement pursuant to
this Section 3.6.

 

3.7.                            Confidentiality.  All information acquired by Purchaser or any
of its designated representatives (including by way of example, but not in
limitation, the officers, directors, shareholders and employees of Purchaser,
and Purchaser’s engineers, consultants, counsel and potential lenders, and the
officers, directors, shareholders and employees of each of them) with respect
to the Property, whether delivered by Seller or any of Seller’s representatives
or obtained by Purchaser as a result of its inspection and investigation of the
Property, examination of Seller’s books, records and files in respect of the
Property, or otherwise (collectively, the “Due Diligence Material”) shall
be used solely for the purpose of determining whether the Property is suitable
for Purchaser’s acquisition and ownership thereof and for no other purpose
whatsoever.  The terms and conditions
which are contained in this Agreement and all Due Diligence Material which is
not published as public knowledge or which is not generally available in the
public domain shall be kept in strict confidence by Purchaser and shall not be
disclosed to any individual or entity other than to those authorized representatives
of Purchaser who need to know the information for the purpose of assisting
Purchaser in evaluating the Property for Purchaser’s potential acquisition
thereof; provided however, that Purchaser shall have the right to disclose any
such information if required by applicable law or as may be necessary in
connection with any court action or proceeding with respect to this
Agreement.  Purchaser shall and hereby
agrees to indemnify and hold Seller harmless from and against any and all loss,
liability, cost, damage or expense that Seller may suffer or incur (including,
without limitation, reasonable attorneys’ fees actually incurred) as a result
of the unpermitted disclosure or use of any of the Due Diligence Material to
any individual or entity other than an appropriate representative of Purchaser
and/or the use of any Due Diligence Material for any purpose other than as
herein contemplated and permitted.  If
Purchaser elects to terminate this Agreement pursuant to any provision hereof
permitting such termination, or if the Closing contemplated hereunder fails to
occur for any reason, Purchaser will promptly return to Seller all Due
Diligence Material in the possession of Purchaser and any of its
representatives, and destroy all copies, notes or abstracts or extracts
thereof, as well as all copies of any analyses, compilations, studies or other
documents prepared by Purchaser or for its use (whether in written or
electronic form) containing or reflecting any Due Diligence Material.  In the event of a breach or threatened breach
by Purchaser or any of its representatives of this Section 3.7, Seller
shall be entitled, in addition to other available remedies, to an injunction
restraining Purchaser or its representatives from disclosing, in whole or in
part, any of the Due Diligence Material and any of the terms and conditions of
this Agreement.  Nothing contained herein
shall be construed as prohibiting or limiting Seller from pursuing any other
available remedy, in law or in equity, for such breach or threatened breach.  The provisions of this Section shall
survive the termination of this Agreement, unless the Closing occurs.  Notwithstanding the foregoing, Seller
acknowledges that Purchaser is a real estate investment trust subject to
regulation by the Securities and Exchange Commission (the “SEC”) and hereby
gives Purchase permission to file such disclosures as its attorneys or auditors
advise it to file with the SEC upon entering into the Agreement and upon
Closing, including a copy of the Agreement itself with the SEC.

 

13

 

ARTICLE 4.

REPRESENTATIONS,
WARRANTIES AND OTHER AGREEMENTS

 

4.1.                            Representations
and Warranties of Seller.  Seller
hereby makes the following representations and warranties to Purchaser:

 

(a)                                  Organization,
Authorization and Consents.  Seller
is a duly organized and validly existing limited partnership under the laws of
the State of Delaware.  Seller has the
right, power and authority to enter into this Agreement and to convey the
Property in accordance with the terms and conditions of this Agreement, to
engage in the transactions contemplated in this Agreement and to perform and
observe the terms and provisions hereof.

 

(b)                                 Action of Seller,
Etc. Seller has taken all necessary action to authorize the execution,
delivery and performance of this Agreement, and upon the execution and delivery
of any document to be delivered by Seller on or prior to the Closing, this
Agreement and such document shall constitute the valid and binding obligation
and agreement of Seller, enforceable against Seller in accordance with its
terms, except as enforceability may be limited by bankruptcy, insolvency,
reorganization, moratorium or similar laws of general application affecting the
rights and remedies of creditors.

 

(c)                                  No Violations of
Agreements.  Neither the execution,
delivery or performance of this Agreement by Seller, nor compliance with the
terms and provisions hereof, will result in any breach of the terms, conditions
or provisions of, or conflict with or constitute a default under, or result in
the creation of any lien, charge or encumbrance upon the Property or any
portion thereof pursuant to the terms of any indenture, deed to secure debt,
mortgage, deed of trust, note, evidence of indebtedness or any other agreement
or instrument by which Seller is bound.

 

(d)                                 Litigation.  To Seller’s knowledge, Seller has received no
written notice that any investigation, action or proceeding is pending or
threatened, which (i) if determined adversely to Seller, materially and
adversely affects the use or value of the Property, or (ii) questions the
validity of this Agreement or any action taken or to be taken pursuant hereto,
or (iii) involves condemnation or eminent domain proceedings involving the
Property or any portion thereof.

 

(e)                                  Existing Leases.  There are no leases, licenses, or other
occupancy agreements affecting any portion of the Property other than the
Leases identified on Exhibit F.  There are no lease term letters or leases
delivered for execution to prospective tenants of the Property except for
prospective lease transactions that, although at one time actively pursued, are
not currently being pursued by Seller. 
The information contained in Exhibit F
is true and correct.  The copies of the
Leases furnished by the Seller to the Purchaser are true and complete
copies.  Other than items included in
Seller’s lease files which Seller has made available to Purchaser, Seller has
executed no side letters or other understandings concerning the Leases.  The Leases are in full force and effect,
without any material default by the Seller or, to Seller’s knowledge, by any
tenant thereunder.  Except as set forth
in Exhibit F All tenants required
to pay rent or additional rent as of the Effective Date have paid such sums in
full without set-off or counterclaim. 
Seller has not given or received any notice of default which remains
uncured or unsatisfied with respect to any of the Leases.  Seller has not granted to any tenant under a
Lease or any other person or entity an option, right of first refusal, or right
to purchase the Property or any part thereof or interest therein which is not
contained in a recorded document listed as a Permitted Exception or

 

14

 

in a Lease.  All
Security Deposits are set forth on Exhibit F.  There are no Tenant Inducement Costs other
than as set forth in Exhibit K.

 

(f)                                    Leasing
Commissions.  To Seller’s knowledge, (i) there
are no lease brokerage agreements, leasing commission agreements or other
agreements providing for payments of any amounts for leasing activities or
procuring tenants with respect to the Property or any portion or portions
thereof other than as disclosed in EXHIBIT “C”
attached hereto (the “Commission Agreements”), and (ii) there are no
agreements currently in effect relating to the management and leasing of the
Property other than as disclosed on said EXHIBIT “C”
(the “Management Agreement”); and that all leasing commissions,
brokerage fees and management fees accrued or due and payable under the
Commission Agreements and the Management Agreement, as of the date hereof and
at the Closing have been or shall be paid in full; and that Seller shall
deliver termination notices with regard to the Management Agreement at Closing
(unless Purchaser elects to assume such Management Agreement) at no cost to
Purchaser.  Notwithstanding anything to
the contrary contained herein, Purchaser shall be responsible for the payment
of all leasing commissions payable for (A) any new leases entered into
after the Effective Date that have been approved (or deemed approved) by
Purchaser, and (B) the renewal, expansion or extension of any Leases
existing as of the Effective Date and exercised or effected after the Effective
Date, and Purchaser shall pay to the manager under the Management Agreement
leasing commissions with respect to leases entered into (or expansions,
renewals or extensions effected) by Purchaser within thirty (30) days after the
Closing Date with the tenants or prospective tenants listed in item IV of EXHIBIT “C” hereto and approved by Purchaser.

 

(g)                                 Taxes and
Assessments.  Except as may be set
forth on EXHIBIT “J” attached hereto and
made a part hereof, Seller has not filed, and has not retained anyone to file,
notices of protests against, or to commence action to review, real property tax
assessments against the Property.  To
Seller’s actual knowledge, there are no performance, payment, maintenance, or
other bonds outstanding or due to be posted to any state or local government
respecting the development or operation of the Property or the roads or
utilities serving the same.  To Seller’s
actual knowledge, all assessments, impact fees, or other similar state or local
financial obligations have been paid in full and Seller is unaware of any other
such obligations pending or threatened with respect to the Property.

 

(h)                                 Environmental
Matters.  Except as may be set forth
in the Existing Environmental Reports or as otherwise disclosed on Exhibit E: (i) Seller has
not engaged in the generation, use, manufacture, treatment, storage, or
disposal of any Hazardous Substance on the Property in violation of any
Environmental Law, as hereinafter defined; (ii) Seller has not received
written notification that any governmental or quasi-governmental authority that
there are any violations of any Environmental Law with respect to the Property,
nor has Seller received any written notice that any governmental or
quasi-governmental authority is contemplating an investigation of the Property,
with respect to a violation or suspected violation of any Environmental Law, (iii) and
Seller has not received written notice that any third party has engaged in the
generation, use, manufacture, treatment, storage, or disposal of any Hazardous
Substance on the Property in violation of any Environmental Law.

 

15

 

(i)                                     Compliance with
Laws.  There are no pending lawsuits
against Seller with regard to the construction, development, use, or operation
of the Property.  To Seller’s actual knowledge,
and except as set forth on EXHIBIT “G”,
there are no actions, suits, or proceedings before any court or governmental
authority, affecting the Property or which may affect Seller’s ability to
perform its obligations under this Agreement, nor has Seller received an
express written threat of litigation with regard to the Property within the
last ninety (90) days.

 

(j)                                     Easements and
Other Agreements.  To Seller’s
knowledge, Seller has not received any written notice of Seller’s default in
complying with the terms and provisions of any of the covenants, conditions,
restrictions or easements constituting a Permitted Exception.

 

(k)                                  Other Agreements.  To Seller’s knowledge, except for the Leases,
the Commission Agreements, the Management Agreement and the Permitted
Exceptions, there are no leases, Operating Agreements, management agreements,
brokerage agreements, leasing agreements or other agreements or instruments in
force or effect that grant to any person or any entity any right, title,
interest or benefit in and to all or any part of the Property or any rights
relating to the use, operation, management, maintenance or repair of all or any
part of the Property which will survive the Closing or be binding upon
Purchaser other than those which Purchaser has agreed in writing to assume
prior to the expiration of the Inspection Period.  There are no material defaults by Seller
under the agreements referred to in this subsection (k) and, to Seller’s
knowledge, there are no material defaults by any other party to such
agreements.

 

(l)                                     Seller Not a
Foreign Person.  Seller is not a “foreign
person” which would subject Purchaser to the withholding tax provisions of Section 1445
of the Internal Revenue Code of 1986, as amended.

 

(m)                               Condemnation.  Except as set forth in Schedule 4.1(m)
Seller has received no written notice of the commencement of any proceedings
for taking by condemnation or eminent domain of any part of the Property, nor
does Seller have any actual knowledge of threatened proceedings for taking by condemnation
or eminent domain of any part of the Property.

 

(n)                                 Employees.  Seller has no employees to whom by virtue of
such employment Purchaser will have any obligation after the Closing.

 

(o)                                 Property
Information.  All contracts,
guarantees, warranties, and all other books, records, contracts or other like
documentation delivered to Purchaser by Seller pursuant to this Agreement or in
connection with the execution hereof are accurate, true, correct, and complete
copies of Seller’s copies of those materials.

 

(p)                                 Mechanic’s
Liens.  To Seller’s knowledge, other
than as set forth in the Title Commitments, there are no mechanic’s liens or
any matters or disputes as of the Closing Date which, if such matters and
disputes are not resolved on or before the Closing Date, could ripen into
mechanic’s liens relating to the Property.

 

(q)                                 Zoning.  The Property is properly zoned for its
present use and, to Seller’s knowledge, there presently exist no violations of
any applicable zoning ordinance, covenants, commitments, conditions or
restrictions.

 

16

 

(r)                                    Utilities
and Access.  The Property has
adequate and permanent legal access to water and electrical supply, storm, and
sanitary sewage facilities, other required public utilities (with respect to
each of the aforementioned items, by means of either a direct connection to the
source of such utilities or through connections available on publicly dedicated
roadways directly abutting the Property), parking, and means of access between
the Property and public highways and roads over recognized curb cuts for each
Property’s current use.

 

Seller acknowledges that Purchaser is relying on the representations
and warranties made by Seller in this Section 4.1.  The representations and warranties made in
this Agreement by Seller shall be continuing and shall be deemed remade by
Seller as of the Closing Date, with the same force and effect as if made on,
and as of, such date, subject to Seller’s right to update such representations
and warranties by written notice to Purchaser and in Seller’s certificate to be
delivered pursuant to Section 5.1(i) hereof.  All representations and warranties made in
this Agreement by Seller shall survive the Closing for a period of one (1) year,
and upon expiration thereof shall be of no further force or effect except to
the extent that with respect to any particular alleged breach, Purchaser gives
Seller written notice prior to the expiration of said one (1) year period
of such alleged breach with reasonable detail as to the nature of such breach
and files an action against Seller with respect thereto within ninety (90) days
after the giving of such notice.

 

Notwithstanding anything to the contrary contained in this Section 4.1,
in no event shall Seller’s total liability for any breach or breaches of the
representations or warranties made in this Agreement exceed, in the aggregate,
Seven Hundred and Fifty Thousand and No/100 Dollars ($750,000 US).  In no event shall Seller be liable for, nor
shall Purchaser seek, any consequential, indirect or punitive damages; and in
no event shall any claim for a breach of any representation or warranty of
Seller be actionable or payable if the breach in question results from or is
based on a condition, state of facts or other matter which was known to
Purchaser prior to the Closing or which was contained in the materials set
forth on Exhibit L.

 

Except as otherwise expressly provided in this Section 4.1 or this
Agreement or in any documents to be executed and delivered by Seller to
Purchaser at the Closing, Seller has not made, and Purchaser has not relied on,
any information, promise, representation or warranty, express or implied,
regarding the Property, whether made by Seller, on Seller’s behalf or
otherwise, including, without limitation, the physical condition of the
Property, the financial condition of the tenants under the Leases, title to or
the boundaries of the Property, pest control matters, soil conditions, the
presence, existence or absence of hazardous wastes, toxic substances or other
environmental matters, compliance with building, health, safety, land use and
zoning laws, regulations and orders, structural and other engineering
characteristics, traffic patterns, market data, economic conditions or
projections, past or future economic performance of the tenants or the
Property, and any other information pertaining to the Property or the market
and physical environments in which the Property is located.  Purchaser acknowledges (i) that
Purchaser has entered into this Agreement with the intention of making and
relying upon its own investigation or that of Purchaser’s own consultants and
representatives with respect to the physical, environmental, economic and legal
condition of the Property and (ii) that Purchaser is not relying upon any
statements, representations or warranties of any kind, other than those
specifically set forth in this Section 4.1 or elsewhere in this Agreement
or in any document to be

 

17

 

executed and delivered by Seller to Purchaser at the
Closing, made (or purported to be made) by Seller or anyone acting or claiming
to act on Seller’s behalf.  Purchaser has
inspected or shall inspect the Property and is or shall be fully familiar with
the physical condition thereof and, subject to the terms and conditions of this
Agreement, shall purchase the Property in its “as is” condition, “with all
faults,” on the Closing Date.  The
provisions of the foregoing three (3) paragraphs of this Section shall
survive the Closing.

 

4.2.                            Knowledge
Defined.  All references in this
Agreement to the “knowledge of Seller” or “to Seller’s knowledge” or any words
of similar import shall refer only to the actual knowledge of Kip Marshall,
Donna Cottle, Crystal Jones (the property manager) and Krista Willson (the
asset manager) who have been actively involved in the management of Seller’s
business in respect of the Property in the capacities of representatives of BVT
Management Services, Inc., an affiliate of Seller.  The terms “knowledge of Seller” or “to Seller’s
knowledge” or any words of similar import shall not be construed, by imputation
or otherwise, to refer to the knowledge of Seller, or any affiliate of Seller,
or to any other partner, beneficial owner, officer, agent, manager,
representative or employee of Seller, or any of their respective affiliates, or
to impose on any of the individuals named above any duty to investigate the
matter to which such actual knowledge, or the absence thereof, pertains.  There shall be no personal liability on the
part of the individuals named above arising out of any representations or
warranties made herein or otherwise.

 

4.3.                            Covenants
and Agreements of Seller.

 

(a)                                  Leasing
Arrangements.  During the pendency of
this Agreement, Seller will not enter into any lease affecting the Property, or
modify or amend in any material respect, or terminate, any of the existing
Leases without Purchaser’s prior written consent in each instance, which
consent shall not be unreasonably withheld, delayed or conditioned and which
shall be deemed given unless denied by written notice to Seller given within
five (5) Business Days after Purchaser’s receipt of Seller’s written
request therefor, each of which requests shall be accompanied by a copy of any
proposed modification or amendment of an existing Lease or of any new Lease
that Seller wishes to execute between the Effective Date and the Closing Date,
including, without limitation, a description of any Tenant Inducement Costs and
leasing commissions associated with any proposed renewal or expansion of an
existing Lease or with any such new Lease. 
If Purchaser fails to notify Seller in writing of its approval or
disapproval within said five (5) Business Day period, such failure by
Purchaser shall be deemed to be the approval of Purchaser.  At Closing, Purchaser shall reimburse Seller
for any Tenant Inducement Costs or leasing commissions actually incurred by
Seller pursuant to a renewal or expansion of any existing Lease or new Lease
approved (or deemed approved) by Purchaser hereunder after the Effective Date.

 

(b)                                 New Contracts.  During the pendency of this Agreement, Seller
will not enter into any contract, or modify, amend, renew or extend any
Operating Agreement, that will be an obligation affecting the Property or any
part thereof subsequent to the Closing Date without Purchaser’s prior written
consent in each instance.

 

18

 

(c)                                  Operation of
Property.  During the pendency of
this Agreement, Seller shall continue to operate the Property in a good and
businesslike fashion consistent with Seller’s past practices.

 

(d)                                 Insurance.  During the pendency of this Agreement, Seller
shall, at its expense, continue to maintain the insurance policies covering the
Improvements which are currently in force and effect.

 

(e)                                  Tenant
Estoppel Certificates.  Seller shall
endeavor in good faith (but without obligation to incur any cost or expense,
except as set forth in the Leases) to obtain and deliver to Purchaser prior to
Closing a written Tenant Estoppel Certificate in the form attached hereto as EXHIBIT “I” signed by each tenant under each of the
Leases; provided that delivery of such signed Tenant Estoppel Certificates
shall be a condition of Closing only to the extent set forth in Section 6.1(d) hereof;
and in no event shall the inability or failure of Seller to obtain and deliver
said Tenant Estoppel Certificates (Seller having used its good faith efforts as
set forth above) be a default of Seller hereunder.

 

(f)                                    Right
to Audit. Seller agrees that Purchaser’s accountants, at Purchaser’s sole
cost, shall have the right to perform an audit on Seller’s previous two years’
financial statements with respect to each Property (provided, however, only for
those periods during which Seller has owned such Property) and Seller agrees to
issue appropriate management representation letters in connection therewith.

 

4.4.                            Representations
and Warranties of Purchaser.

 

(a)                                  Organization,
Authorization and Consents. 
Purchaser is a duly organized and validly existing limited liability
company under the laws of the State of Indiana. 
Purchaser has the right, power and authority to enter into this
Agreement and to purchase the Property in accordance with the terms and
conditions of this Agreement, to engage in the transactions contemplated in
this Agreement and to perform and observe the terms and provisions hereof.

 

(b)                                 Action of
Purchaser, Etc.   Purchaser has taken
all necessary action to authorize the execution, delivery and performance of
this Agreement, and upon the execution and delivery of any document to be
delivered by Purchaser on or prior to the Closing, this Agreement and such
document shall constitute the valid and binding obligation and agreement of
Purchaser, enforceable against Purchaser in accordance with its terms, except
as enforceability may be limited by bankruptcy, insolvency, reorganization,
moratorium or similar laws of general application affecting the rights and
remedies of creditors.

 

(c)                                  No Violations of
Agreements. To Purchaser’s knowledge, neither the execution, delivery or
performance of this Agreement by Purchaser, nor compliance with the terms and
provisions hereof, will result in any breach of the terms, conditions or
provisions of, or conflict with or constitute a default under the terms of any
indenture, deed to secure debt, mortgage, deed of trust, note, evidence of
indebtedness or any other agreement or instrument by which Purchaser is bound.

 

19

 

(d)                                 Litigation.  To Purchaser’s knowledge, Purchaser has
received no written notice that any action or proceeding is pending or
threatened, which questions the validity of this Agreement or any action taken
or to be taken pursuant hereto.

 

The representations and warranties made in this Agreement by Purchaser
shall be continuing and shall be deemed remade by Purchaser as of the Closing
Date, with the same force and effect as if made on, and as of, such date
subject to Purchaser’s right to update such representations and warranties by
written notice to Seller and in Purchaser’s certificate to be delivered
pursuant to Section 5.2(d) hereof. 
All representations and warranties made in this Agreement by Purchaser
shall survive the Closing for a period of one (1) year, and upon expiration
thereof shall be of no further force or effect except to the extent that with
respect to any particular alleged breach, Seller gives Purchaser written notice
prior to the expiration of said one (1) year period of such alleged breach
with reasonable detail as to the nature of such breach and files an action
against Seller with respect thereto within ninety (90) days after the giving of
such notice.

 

ARTICLE 5.

CLOSING
DELIVERIES, CLOSING COSTS AND PRORATIONS

 

5.1.                            Seller’s
Closing Deliveries.  For and in
consideration of, and as a condition precedent to Purchaser’s delivery to
Seller of the Purchase Price, Seller shall obtain or execute and deliver to
Purchaser at Closing the following documents, all of which shall be duly
executed, acknowledged and notarized where required:

 

(a)                                  Warranty Deed.  A special warranty deed to the Land, in the
form attached hereto as SCHEDULE 1
(the “Warranty Deed”), subject only to the Permitted Exceptions, and
executed, acknowledged and sealed by Seller. 
The legal descriptions of the Land set forth in said warranty deed shall
be based upon and conform to the applicable record title legal description
contained in Seller’s vesting deed;

 

(b)                                 Quitclaim Deed.  If requested by Purchaser, one or more
quitclaim deeds to the Land and Improvements (or any portion or portions
thereof), in form and substance reasonably satisfactory to Seller, and
executed, acknowledged and sealed by Seller;

 

(c)                                  Bill of Sale.
Bills of sale for the Personal Property in the form attached hereto as SCHEDULE 2 (the “Bill of Sale”), without
warranty as to the title or condition of the Personal Property;

 

(d)                                 Assignment and
Assumption of Leases and Security Deposits. 
Two (2) counterparts of an assignment and assumption of Leases and
Security Deposits for each Property and, to the extent required elsewhere in
this Agreement, the obligations of Seller under the Commission Agreements in
the form attached hereto as SCHEDULE 3
(the “Assignment and Assumption of Leases”), executed, acknowledged and
sealed by Seller;

 

(e)                                  Updated Rent Roll.  An update of the Rent Roll (with
modifications as appropriate), certified by Seller to be accurate in all
material respects as of the date of Closing;

 

20

 

(f)                                    Assignment and
Assumption of Operating Agreements. 
Two (2) counterparts of an assignment and assumption of Operating
Agreements for each Property in the form attached hereto as SCHEDULE 4  (the “Assignment
and Assumption of Operating Agreements”), executed, acknowledged and sealed
by Seller;

 

(g)                                 General Assignment.  An assignment of the Intangible Property for
each Property in the form attached hereto as SCHEDULE 5
(the “General Assignment”), executed, acknowledged and sealed
by Seller;

 

(h)                                 Seller’s Affidavit.  Owner’s affidavits substantially in the form
attached hereto as SCHEDULE 6
(“Seller’s Affidavit”), sufficient to cause the Title Company to delete
the standard title exceptions to the final title policy and stating that there
are no known boundary disputes with respect to the Properties, that there are
no parties in possession of the Property other than Seller and the tenants
under the Leases, that there are no brokers except as disclosed herein, that
any improvements or repairs made by, or for the account of, or at the instance
of Seller to or with respect to the Property within ninety (90) days prior to
the Closing have been paid for in full (or that adequate provision has been
made therefor to the reasonable satisfaction of the Title Company), and
including such other matters as may be reasonably requested by the Title
Company;

 

(i)                                     Seller’s
Certificate.  A certificate in the
form attached hereto as SCHEDULE 7
(“Seller’s Certificate”), evidencing the reaffirmation of the truth and
accuracy in all material respects of Seller’s representations, warranties, and
agreements set forth in Section 4.1 hereof, with such modifications
thereto as may be appropriate in light of any change in circumstance since the
Effective Date;

 

(j)                                     FIRPTA
Certificate  A FIRPTA Certificate in
the form attached hereto as SCHEDULE 8;

 

(k)                                  INTENTIONALLY
OMITTED;

 

(l)                                     Evidence of
Authority  Such documentation as may
reasonably be required by the Title Company to establish that this Agreement,
the transactions contemplated herein, and the execution and delivery of the
documents required hereunder, are duly authorized, executed and delivered;

 

(m)                               Settlement Statement  Settlement statements for each Property
setting forth the amounts paid by or on behalf of and/or credited to each of
Purchaser and Seller pursuant to this Agreement;

 

(n)                                 Surveys and Plans.  Such surveys, site plans, plans and
specifications, and other matters relating to the Property as are in the
possession of Seller to the extent not theretofore delivered to Purchaser;

 

(o)                                 Certificates of
Occupancy.  To the extent the same
are in Seller’s possession, original or photocopies of certificates of
occupancy for all space within the Improvements located on the Property;

 

21

 

(p)                                 Leases.  To the extent the same are in Seller’s
possession, original executed Leases and the contents of all lease files,
including original tenant correspondence, guarantees, and similar documents;

 

(q)                                 Tenant Estoppel
Certificates.  All originally
executed Tenant Estoppel Certificates as may be in Seller’s possession;

 

(r)                                    Notices of Sale
to Tenants.  Seller will join with
Purchaser in executing a notice, in form and content reasonably satisfactory to
Seller and Purchaser (the “Tenant Notices of Sale”), which Purchaser shall
send to each tenant under the Leases informing such tenant of the sale of the
Property and of the assignment to and assumption by Purchaser of Seller’s
interest in the Leases and the Security Deposits and directing that all rent
and other sums payable for periods after the Closing under such Lease shall be
paid as set forth in said notices;

 

(s)                                  Notices of Sale to
Service Contractors and Leasing Agents. 
Seller will join with Purchaser in executing notices, in form and
content reasonably satisfactory to Seller and Purchaser (the “Other Notices
of Sale”), which Purchaser shall send to each service provider and leasing
agent under the Operating Contracts and Commission Agreements (as the case may
be) assumed by Purchaser at Closing informing such service provider or leasing
agent (as the case may be) of the sale of the Property and of the assignment to
and assumption by Purchaser of Seller’s obligations under the Operating
Agreements and Commission Agreements arising after the Closing Date and
directing that all future statements or invoices for services under such
Operating Agreements and/or Commission Agreements for periods after the Closing
be directed to Seller or Purchaser as set forth in said notices;

 

(t)                                    Keys and Records.  All of the keys to any door or lock on the
Property and the original tenant files and other non-confidential books and
records (excluding any appraisals, budgets, strategic plans for the Property,
internal analyses, information regarding the marketing of the Property for
sale, submissions relating to Seller’s obtaining of corporate authorization,
attorney and accountant work product, attorney-client privileged documents, or
other information in the possession or control of Seller or Seller’s property
manager which Seller deems proprietary) relating to the Property in Seller’s
possession; and

 

(u)                                 Other Documents.  Such other documents as shall be reasonably
requested by the Title Company or Purchaser to effectuate the purposes and
intent of this Agreement.

 

5.2.                            Purchaser’s
Closing Deliveries. Purchaser shall obtain or execute and deliver to
Seller at Closing the following documents, all of which shall be duly executed,
acknowledged and notarized where required:

 

(a)                                  Assignment and
Assumption of Leases.  Two (2) counterparts
of the Assignment and Assumption of Leases for each Property, executed,
acknowledged and sealed by Purchaser;

 

(b)                                 Assignment and
Assumption of Operating Agreements. 
Two (2) counterparts of the Assignment and Assumption of Operating
Agreements for each Property, executed, acknowledged and sealed by Purchaser;

 

22

 

(c)                                  General Assignment.  Two (2) counterparts of the General
Assignment for each Property, executed, acknowledged and sealed by Purchaser;

 

(d)                                 Purchaser’s
Certificate.  A certificate in the
form attached hereto as SCHEDULE 10
(“Purchaser’s Certificate”), evidencing the reaffirmation of the truth
and accuracy in all material respects of Purchaser’s representations,
warranties and agreements contained in Section 4.4 hereof, with such
modifications thereto as may be appropriate in light of any change in
circumstances since the Effective Date;

 

(e)                                  Notice of Sale to
Tenants.  The Tenant Notices of Sale,
executed by Purchaser, as contemplated in Section 5.1(r) hereof;

 

(f)                                    Notices of Sale
to Service Contractors and Leasing Agents. 
The Other Notices of Sale to Service Contractors and Leasing Agents, as
contemplated in Section 5.1(s) hereof;

 

(g)                                 Settlement
Statement  Settlement statements for
each Property setting forth the amounts paid by or on behalf of and/or credited
to each of Purchaser and Seller pursuant to this Agreement;

 

(h)                                 Evidence of
Authority.  A copy of resolutions of
the Board of Directors of the Purchaser, certified by the Secretary or
Assistant Secretary of Purchaser to be in force and unmodified as of the date
and time of Closing, authorizing the purchase contemplated herein, the
execution and delivery of the documents required hereunder, and designating the
signatures of the persons who are to execute and deliver all such documents on
behalf of Purchaser or if Purchaser is not a corporation, such documentation as
Seller may reasonably require to establish that this Agreement, the transaction
contemplated herein, and the execution and delivery of the documents required
hereunder, are duly authorized, executed and delivered; and

 

(i)                                     Other Documents.  Such other documents as shall be reasonably
requested by Seller’s counsel to effectuate the purposes and intent of this
Agreement.

 

5.3.                            Closing
Costs. Seller shall pay the cost of the documentary stamps or transfer
taxes imposed by the State of Florida upon the conveyance of the Property
pursuant hereto, the attorneys’ fees of Seller, and all other costs and
expenses incurred by Seller in closing and consummating the purchase and sale
of the Property pursuant hereto. 
Purchaser shall pay the cost of any owner’s and/or lender’s title
insurance premium and title examination fees, the cost of the Survey, all
ministerial recording fees on all instruments to be recorded in connection with
this transaction (not including deed taxes), the attorneys’ fees of Purchaser,
and all other costs and expenses incurred by Purchaser in the performance of
Purchaser’s due diligence inspection of the Property and in closing and
consummating the purchase and sale of the Property pursuant hereto.

 

5.4.                            Prorations
and Credits.   The items in this Section 5.4
shall be prorated between Seller and Purchaser or credited, as specified
herein.   All matters involving
prorations or adjustment to be made in connection with the Closing and not
specifically provided for in some other provision of this Agreement shall be
prorated as of midnight of the day immediately preceding the Closing Date.

 

23

 

(a)                                  Taxes.  All general real estate taxes imposed by any
governmental authority (“Taxes”) for the year in which the Closing
occurs shall be prorated between Seller and Purchaser as of the Closing.  If the Closing occurs prior to the receipt by
Seller of the bill for Taxes for the calendar year or other applicable tax
period in which the Closing occurs, Taxes shall be prorated for such calendar
year or other applicable tax period based upon the prior year’s tax bill.

 

(b)                                 Reproration of
Taxes.  After receipt of final bill
for Taxes, Purchaser shall prepare and present to Seller a calculation of the
reproration of such Taxes, based upon the actual amount of such Taxes charged
to or received by the parties for the year or other applicable fiscal period.  The parties shall make the appropriate
adjusting payment between them within thirty (30) days after presentment to
Seller of Purchaser’s calculation and appropriate back-up information.  Purchaser shall provide Seller with
appropriate backup materials related to the calculation.  The provisions of this Section 5.4(b) shall
survive the Closing for a period of one (1) year after the Closing Date.

 

(c)                                  Rents, Income and
Other Expenses.  Rents and any other
amounts actually received from tenants shall be prorated as of the Closing Date
and be adjusted against the Purchase Price on the basis of a schedule which
shall be prepared by Seller and delivered to Purchaser for Purchaser’s review
and approval prior to Closing. Purchaser shall receive at Closing a credit for
Purchaser’s pro rata share of the rents, additional rent, common area
maintenance charges, tenant reimbursements and escalations, and all other
payments received for the month of Closing and for all other rents and other
amounts that apply to periods from and after the Closing, but which are
received by Seller prior to Closing. 
Purchaser agrees to pay to Seller, upon receipt and net of any
collection costs incurred by Purchaser, any rents or other payments by tenants
under their respective Leases that apply to periods prior to Closing but are
received by Purchaser after Closing; provided, however, that any delinquent
rents or other payments by tenants shall be applied first to any current
amounts owing by such tenants, then to delinquent rents in the order in which
such rents are most recently past due, with the balance, if any, paid over to
Seller to the extent of delinquencies existing at the time of Closing to which
Seller is entitled; it being understood and agreed that Purchaser shall not be
legally responsible to Seller for the collection of any rents or other charges
payable with respect to the Leases or any portion thereof, which are delinquent
or past due as of the Closing Date; but Purchaser agrees that Purchaser shall
send monthly notices for a period of three (3) consecutive months in an
effort to collect any rents and charges not collected as of the Closing
Date.  Any reimbursements payable by any
tenant under the terms of any tenant lease affecting the Property as of the Closing
Date, which reimbursements pertain to such tenant’s pro rata share of increased
operating expenses or common area maintenance costs incurred with respect to
the Property at any time prior to the Closing, shall be prorated upon Purchaser’s
actual receipt of any such reimbursements, on the basis of the number of days
of Seller and Purchaser’s respective ownership of the Property during the
period in respect of which such reimbursements are payable; and Purchaser
agrees to pay to Seller Seller’s pro rata portion of such reimbursements within
thirty (30) days after Purchaser’s receipt thereof.  Conversely, if any tenant under any such
Lease shall become entitled at any time after Closing to a refund of tenant
reimbursements actually paid by such tenant prior to Closing, then, Seller
shall, within thirty (30) days following Purchaser’s demand therefor, pay to
Purchaser any amount equal to Seller’s pro rata share of

 

24

 

such reimbursement refund obligations, said proration
to be calculated on the same basis as hereinabove set forth.  Seller hereby retains its right to pursue any
tenant under the Leases for sums due Seller for periods attributable to Seller’s
ownership of the Property; provided, however, that Seller (i) shall be required
to notify Purchaser in writing of its intention to commence or pursue such
legal proceedings; (ii) shall only be permitted to commence or pursue any
legal proceedings after the date which is three (3) months after Closing,
except that Seller shall be entitled to continue to pursue any legal
proceedings commenced prior to Closing; and (iii) shall not be permitted
to commence or pursue any legal proceedings against any tenant seeking eviction
of such tenant or the termination of the applicable Lease.  The provisions of this Section 5.4(c) shall
survive the Closing.

 

(d)                                 Percentage
Rents.  Percentage rents, if any,
collected by Purchaser from any tenant under such tenant’s Lease for the
percentage rent accounting period in which the Closing occurs shall be prorated
between Seller and Purchaser as of the Closing Date, as, if, and when received
by Purchaser, such that Seller’s pro rata share shall be an amount equal to the
total percentage rentals paid for such percentage rent accounting period under
the applicable Lease multiplied by a fraction, the numerator of which shall be
the number of days in such accounting period prior to Closing and the
denominator of which shall be the total number of days in such accounting
period; provided, however, that such proration shall be made only at such time
as such tenant is current or, after application of a portion of such payment,
will be current in the payment of all rental and other charges under such
tenant’s Lease that accrue and become due and payable from and after the
Closing.  The provisions of this Section 5.4(d) shall
survive the Closing.

 

(e)                                  Tenant
Inducement Costs.  Set forth on EXHIBIT “K” attached hereto and made a part hereof is a
list of tenants at the Property with respect to which Tenant Inducement Costs
and/or leasing commissions have not been paid in full as of the Effective
Date.  Seller shall pay all such Tenant
Inducement Costs and leasing commissions set forth in EXHIBIT “K”
as and when the same are due and payable.  If said amounts have not been paid in full on
or before Closing, Purchaser shall receive a credit against the Purchase Price
in the aggregate amount of all such Tenant Inducement Costs and leasing
commissions remaining unpaid at Closing, and Purchaser shall assume the
obligation to pay amounts payable after Closing up to the amount of such credit
received at Closing.  Except as may be
specifically provided to the contrary elsewhere in this Agreement, Purchaser
shall be responsible for the payment of all Tenant Inducement Costs and leasing
commissions which become due and payable (whether before or after Closing) (i) as
a result of any renewals or extensions or expansions of existing Leases
approved or deemed approved by Purchaser in accordance with Section 4.3(a) hereof
between the Effective Date and the Closing Date and under any new Leases,
approved or deemed approved by Purchaser in accordance with said Section 4.3(a),
and (ii) all Tenant Inducement Costs and leasing commissions that first
become due and payable after Closing. 
The provisions of this Section 5.4(e) shall survive the
Closing.

 

(f)                                    Security
Deposits.  Purchaser shall receive at
Closing a credit for all Security Deposits required to be held by Seller under
the Leases (except to the extent that a Tenant has certified in a Tenant
Estoppel Certificate that it has not deposited, in whole or part, its security

 

25

 

deposit with Seller) together with a detailed
inventory of such Security Deposits certified by Seller in the updated Rent
Roll to be delivered by Seller at Closing.

 

(g)                                 Operating
Expenses.  Personal property taxes,
installment payments of special assessment liens, vault charges, sewer charges,
utility charges, and normally prorated operating expenses actually paid or payable
as of the Closing Date shall be prorated as of the Closing Date and adjusted
against the Purchase Price, provided that within ninety (90) days after the
Closing, Purchaser and Seller will make a further adjustment for such taxes,
charges and expenses which may have accrued or been incurred prior to the
Closing Date, but not collected or paid at that date.  In addition, within ninety (90) days after
the close of the fiscal year(s) used in calculating the pass-through to tenants
of operating expenses and/or common area maintenance costs under the Leases
(where such fiscal year(s) include(s) the Closing Date), Seller and Purchaser
shall, upon the request of either, re-prorate on a fair and equitable basis in
order to adjust for the effect of any credits or payments due to or from
tenants for periods prior to the Closing Date. 
All prorations shall be made based on the number of calendar days in
such year or month, as the case may be. 
The provisions of this Section 5.4(g) shall survive the
Closing.

 

ARTICLE 6.

CONDITIONS
TO CLOSING

 

6.1.                            Conditions
Precedent to Purchaser’s Obligations. 
The obligations of Purchaser hereunder to consummate the transaction
contemplated hereunder shall in all respects be conditioned upon the
satisfaction of each of the following conditions prior to or simultaneously
with the Closing, any of which may be waived by Purchaser in its sole
discretion by written notice to Seller at or prior to the Closing Date:

 

(a)                                  Seller shall have
delivered to Purchaser all of the items required to be delivered to Purchaser
pursuant to the terms of this Agreement, including, but not limited to Section 5.1
hereof;

 

(b)                                 Seller shall have
performed, in all material respects, all covenants, agreements and undertakings
of Seller contained in this Agreement;

 

(c)                                  All representations
and warranties of Seller as set forth in this Agreement shall be true and
correct in all material respects as of the date of this Agreement and as of
Closing, provided that solely for purposes of this subparagraph such warranties
and representations shall be deemed to be given without being limited to Seller’s
knowledge and without modification (by update or otherwise, as provided in Section 5.1(i) hereof);
and

 

(d)                                 Tenant Estoppel
Certificates shall have been delivered to Purchaser from Beall’s Department
Store (the “Anchor Tenant”), in the form that said tenant is obligated to
deliver pursuant to its lease; and (z) tenants occupying not less than
eighty-five percent (85%) of the remaining occupied, aggregate net rentable
square footage of all of the Improvements located on the Property.  Each Tenant Estoppel Certificate shall: (i) be
substantially in the form attached hereto as EXHIBIT “I”
(or if the applicable Lease provides for a particular form of estoppel
certificate to be given by the tenant thereunder, the Tenant Estoppel
Certificate with respect to

 

26

 

such Lease may be in the form as called for therein), (ii) be
dated within sixty (60) days prior to the Closing Date, (iii) confirm the
material terms of the applicable Lease, and (iv) confirm the absence of
any material defaults under the applicable Lease as of the date thereof.  The delivery of said Tenant Estoppel
Certificates shall be a condition of Closing, and the failure or inability of
Seller to obtain and deliver said Tenant Estoppel Certificates, Seller having
used its good faith efforts to obtain the same, shall not constitute a default
by Seller under this Agreement.  Notwithstanding
anything to the contrary contained herein, if Seller has been unable to obtain
and deliver to Purchaser by Closing the applicable percentage of Tenant
Estoppel Certificates for the tenants described in subclause (z) above and
meeting the requirements set forth above, then, at the option of Seller, that
portion of this condition to Closing may be satisfied by Seller’s execution and
delivery to Purchaser at Closing, on behalf of any one or more tenants which
have failed to provide the required Tenant Estoppel Certificate an estoppel
certificate substantially in the form attached hereto as SCHEDULE 11
(“Seller’s Estoppel”); and provided that Seller’s liability under any
such Seller’s Estoppel so executed and delivered by Seller to Purchaser at
Closing shall cease and terminate upon the receipt by Purchaser after Closing
of a duly executed Tenant Estoppel Certificate from the tenant under the
applicable Lease covered in such Seller’s Estoppel.  Notwithstanding Seller’s right to substitute
the Seller’s Estoppel for some percentage of tenants in the small shops, the
Seller’s Estoppel may not be used as a substitution for the Tenant Estoppel
Certificate from the Anchor Tenant.

 

(e)                                  Existing
Lender shall have consented to Purchaser’s assumption of the Existing Loan, all
as such terms are defined in the Purchase and Sale Agreement between Purchaser
and an affiliate of Seller for Fountain Oaks Shopping Center in Atlanta,
Georgia (the “Fountain Oaks Contract”)

 

In the event any of the conditions in this Section 6.1 have not
been satisfied (or otherwise waived in writing by Purchaser) prior to or on the
Closing Date (as same may be extended or postponed as provided in this
Agreement), Purchaser shall have the right to, at its option: (x) terminate
this Agreement by written notice to Seller given prior to the Closing,
whereupon (i) Escrow Agent shall return the Earnest Money to Purchaser;
and (ii) except for those provisions of this Agreement which by their
express terms survive the termination of this Agreement, no party hereto shall
have any other or further rights or obligations under this Agreement; or (y)
extend the Closing Date for a period of thirty (30) days to permit Seller to
make further good faith efforts to satisfy such condition.  In the event that the Closing Date is so
extended and, at the end of such period, the unsatisfied condition has still
not been satisfied, Purchaser shall have the right to terminate this Agreement
by written notice to Seller given prior to Closing, whereupon (i) Escrow
Agent shall return the Earnest Money to Purchaser; and (ii) except for
those provisions of this Agreement which by their express terms survive the
termination of this Agreement, no party hereto shall have any other or further
or rights or obligations under this Agreement.

 

6.2.                            Conditions
Precedent to Seller’s Obligations. 
The obligations of Seller hereunder to consummate the transaction
contemplated hereunder shall in all respects be conditioned upon the
satisfaction of each of the following conditions prior to or simultaneously with
the Closing, any of which may be waived by Seller in its sole discretion by
written notice to Purchaser at or prior to the Closing Date:

 

27

 

(a)                                  Purchaser shall have
paid and Seller shall have received the Purchase Price, as adjusted pursuant to
the terms and conditions of this Agreement, which Purchase Price shall be
payable in the amount and in the manner provided for in this Agreement;

 

(b)                                 Purchaser
shall have delivered to Seller all of the items required to be delivered to
Seller pursuant to the terms of this Agreement, including, but not limited to Section 5.2
hereof;

 

(c)                                  Purchaser
shall have performed, in all material respects, all covenants, agreements and
undertakings of Purchaser contained in this Agreement; and

 

(d)                                 All representations
and warranties of Purchaser as set forth in this Agreement shall be true and
correct in all material respects as of the date of this Agreement and as of
Closing, provided that solely for purposes of this subparagraph such warranties
and representations shall be deemed to be given without being limited to
Purchaser’s knowledge and without modification (by update or otherwise, as
provided in Section 5.2(d)  hereof).

 

(e)                                  Seller
shall not have any obligation to sell the Property to Purchaser unless
Purchaser simultaneously closes on the acquisition of the Fountain Oaks
Shopping Center in Atlanta, Georgia and Plaza Volente Shopping Center in
Austin, Texas on the Closing Date pursuant to contracts between Purchaser and
affiliates of Seller bearing the date set forth on this Agreement (the “Related
Agreements”), unless the Existing Lender has approved, but is not yet prepared
to close on Purchaser’s assumption of the Existing Loan (as defined in the
Fountain Oaks Contract), in which case Purchaser shall simultaneously close on
acquisition of the Shopping Center and Plaza Volente Shopping Center, and shall
remain obligated to close on the acquisition of Fountain Oaks Shopping Center
as set forth in the Fountain Oaks Contract. 
In the event that Closing does not occur as a result of Purchaser’s
failure or refusal to adhere to the requirements of this subsection, this
Agreement and the Related Agreements shall terminate and Escrow Agent shall pay
the Earnest Money to the Seller, provided, however, that the Existing Lender’s
failure or refusal to approve Purchaser’s assumption of the Existing Loan shall
not constitute Purchaser’s failure or refusal to adhere to the requirements of
this subsection unless Purchaser has violated the covenant set forth in Section 4.5
of the Fountain Oaks Contract.

 

ARTICLE 
7.

CASUALTY
AND CONDEMNATION

 

7.1.                            Casualty.  Risk of loss up to and including the Closing
Date shall be borne by Seller.  In the
event of any immaterial damage or destruction to the Property or any portion
thereof, Seller and Purchaser shall proceed to close under this Agreement, and
Purchaser will receive (and Seller will assign to Purchaser at the Closing
Seller’s rights under insurance policies to receive) any insurance proceeds
(including any rent loss insurance applicable to any period on and after the
Closing Date) due Seller as a result of such damage or destruction and assume
responsibility for such repair, and Purchaser shall receive a credit at Closing
for any deductible, uninsured or coinsured amount under said insurance
policies.  For purposes of this
Agreement, the term “immaterial damage or destruction” shall mean such
instances of damage or destruction:  (i) which
can be repaired or restored at a cost of One Hundred Thousand and No/100
Dollars

 

28

 

($100,000.00) or less; (ii) which can be restored
and repaired within sixty (60) days from the date of such damage or
destruction; and (iii) in which Seller’s rights under its rent loss
insurance policy covering the Property are sufficient to replace lost rent for
a period of eighteen (18) months and are assignable to Purchaser and will
continue pending restoration and repair of the damage or destruction.

 

In the event of any material damage or destruction to the Property or
any portion thereof, Purchaser may, at its option, by notice to Seller given
within the earlier of twenty (20) days after Purchaser is notified by Seller of
such damage or destruction, or the Closing Date, but in no event less than ten (10) days
after Purchaser is notified by Seller of such damage or destruction (and if
necessary the Closing Date shall be extended to give Purchaser the full 10-day
period to make such election): (i) terminate this Agreement, whereupon
Escrow Agent shall immediately return the Earnest Money to Purchaser, or (ii) proceed
to close under this Agreement, receive (and Seller will assign to Purchaser at
the Closing Seller’s rights under insurance policies to receive) any insurance
proceeds (including any rent loss insurance applicable to the period on or
after the Closing Date) due Seller as a result of such damage or destruction
(less any amounts reasonably expended for restoration or collection of
proceeds) and assume responsibility for such repair, and Purchaser shall
receive a credit at Closing for any deductible amount under said insurance
policies.  If Purchaser fails to deliver
to Seller notice of its election within the period set forth above, Purchaser
will conclusively be deemed to have elected to proceed with the Closing as
provided in clause (ii) of the preceding sentence.  If Purchaser elects clause (ii) above,
Seller will cooperate with Purchaser after the Closing to assist Purchaser in
obtaining the insurance proceeds from Seller’s insurers.  For purposes of this Agreement “material
damage or destruction” shall mean all instances of damage or destruction
that are not immaterial, as defined herein.

 

7.2.                            Condemnation.  If, prior to the Closing, all or any part of
the Property is subjected to a bona fide threat of condemnation by a body
having the power of eminent domain or is taken by eminent domain or
condemnation (or sale in lieu thereof), or if Seller has received written
notice that any condemnation action or proceeding with respect to the Property
is contemplated by a body having the power of eminent domain, Seller shall give
Purchaser immediate written notice of such threatened or contemplated
condemnation or of such taking or sale, and Purchaser may by written notice to
Seller given within thirty (30) days after the receipt of such notice from
Seller, elect to cancel this Agreement. 
Purchaser waives any right to terminate as a result of disclosures set
forth in Schedule 4.1(m), if any. 
If Purchaser chooses to cancel this Agreement in accordance with this Section 7.2,
then the Earnest Money shall be returned immediately to Purchaser by Escrow
Agent and the rights, duties, obligations, and liabilities of the parties
hereunder shall immediately terminate and be of no further force and effect,
except for those provisions of this Agreement which by their express terms
survive the termination of this Agreement. 
If Purchaser does not elect to cancel this Agreement in accordance
herewith, this Agreement shall remain in full force and effect and the sale of
the Property contemplated by this Agreement, less any interest taken by eminent
domain or condemnation, or sale in lieu thereof, shall be effected with no further
adjustment and without reduction of the Purchase Price, and at the Closing,
Seller shall assign, transfer, and set over to Purchaser all of the right,
title, and interest of Seller in and to any awards applicable to the Property
that have been or that may thereafter be made for such taking.  At such time as all or a 

 

29

 

part of the Property is subjected to a bona fide
threat of condemnation and Purchaser shall not have elected to terminate this
Agreement as provided in this Section 7.2, and provided that the
Inspection Period has expired and Purchaser has delivered the Additional
Earnest Money to Escrow Agent, (i) Purchaser shall thereafter be permitted
to participate in the proceedings as if Purchaser were a party to the action,
and (ii) Seller shall not settle or agree to any award or payment pursuant
to condemnation, eminent domain, or sale in lieu thereof without obtaining
Purchaser’s prior written consent thereto in each case.

 

ARTICLE 
8.

DEFAULT
AND REMEDIES

 

8.1.                            Purchaser’s
Default.  If Purchaser fails to
consummate this transaction for any reason other than
Seller’s intentional and willful default, failure of a condition to Purchaser’s
obligation to close, or the exercise by Purchaser of an express right of
termination granted herein, Seller shall be entitled, as its sole remedy
hereunder, to terminate this Agreement and to receive and retain the Earnest
Money as full liquidated damages for such default of Purchaser, the parties
hereto acknowledging that it is impossible to estimate more precisely the
damages which might be suffered by Seller upon Purchaser’s default, and that
said Earnest Money is a reasonable estimate of Seller’s probable loss in the
event of default by Purchaser.  Seller’s
retention of said Earnest Money is intended not as a penalty, but as full
liquidated damages.  The right to retain
the Earnest Money as full liquidated damages is Seller’s sole and exclusive
remedy in the event of default hereunder by Purchaser, and Seller hereby waives
and releases any right to (and hereby covenants that it shall not) sue the
Purchaser:  (a) for specific
performance of this Agreement, or (b) to recover actual damages in excess
of the Earnest Money.  The foregoing
liquidated damages provision shall not apply to or
limit Purchaser’s liability for Purchaser’s obligations under Sections 3.1(b),
3.1(c), 3.7 and 10.1 of this Agreement. 
Purchaser hereby waives and releases any right to (and hereby covenants
that it shall not) sue Seller or seek or claim a refund of said Earnest Money
(or any part thereof) on the grounds it is unreasonable in amount and exceeds
Seller’s actual damages or that its retention by Seller constitutes a penalty
and not agreed upon and reasonable liquidated damages.

 

8.2.                            Seller’s
Default.  If Seller fails to
perform any of its obligations under this Agreement for any reason other than
Purchaser’s default or the permitted termination of this Agreement by Seller or
Purchaser as expressly provided herein, Purchaser shall be entitled, as its
sole remedy, and at its option: (a) to receive the return of the Earnest
Money from Escrow Agent, and reimbursement from Seller for Purchaser’s
reasonable third party due diligence costs which return and reimbursement shall
operate to terminate this Agreement and release Seller from any and all
liability hereunder, (b) to enforce specific performance of Seller’s
obligation to execute and deliver the documents required to convey the Property
to Purchaser in accordance with this Agreement, or (c) in the event that
Seller’s default is such that the remedy of specific performance is rendered
impossible, or such that the value of the Property is adversely affected, then
Seller shall be obligated to reimburse Purchaser for Purchaser’s reasonable
third party due diligence costs which return and reimbursement shall operate to
terminate this Agreement and release Seller from any and all liability
hereunder.  Purchaser expressly waives
its rights to seek

 

30

 

damages in the event of Seller’s default hereunder
(except for the reimbursement described above). 
Purchaser shall be deemed to have elected to terminate this Agreement
and to receive a return of the Earnest Money and reimbursement of third-party
due diligence costs from Escrow Agent if Purchaser fails to file suit for
specific performance against Seller in a court having jurisdiction in the
county and state in which the Property is located, on or before sixty (60) days
following the date upon which Purchaser delivered written notice to Seller
stating that Seller was in default of this Agreement.

 

ARTICLE 9.

ASSIGNMENT

 

9.1.                            Assignment.         Subject to the next following sentence,
this Agreement and all rights and obligations hereunder shall not be assignable
by any party without the written consent of the other.  Notwithstanding the foregoing to the
contrary, this Agreement and Purchaser’s rights hereunder may be transferred
and assigned to any entity owned directly or indirectly, in whole or part, by Kite
Realty Group, L.P..  Any assignee or
transferee under any such assignment or transfer by Purchaser as to which
Seller’s written consent has been given or as to which Seller’s consent is not
required hereunder shall expressly assume all of Purchaser’s duties, liabilities
and obligations under this Agreement by written instrument delivered to Seller
as a condition to the effectiveness of such assignment or transfer.  No assignment or transfer shall relieve the
original Purchaser of any duties or obligations hereunder, and the written
assignment and assumption instrument shall expressly so provide.  Subject to the foregoing, this Agreement
shall be binding upon and shall inure to the benefit of the parties hereto and
their respective legal representatives, successors and permitted assigns.  This Agreement is not intended and shall not
be construed to create any rights in or to be enforceable in any part by any
other persons.

 

ARTICLE 10.

BROKERAGE
COMMISSIONS

 

10.1.                     Broker.  Upon the Closing, and only in the event the
Closing occurs, Seller shall pay a brokerage commission to NewBridge Retail
Advisors (“Broker”) pursuant to a separate agreement.  Broker acknowledges and agrees that it shall
look solely to Seller for the payment of its commission, and Broker hereby
waives and releases any present or future claims against Purchaser for the
payment of such commission.  In addition,
Broker (upon receipt of its brokerage commission) agrees to execute and deliver
to Seller and Purchaser at the Closing a release and waiver of any claim Broker
may have against Purchaser or the Property. 
Broker shall and does hereby indemnify and hold Purchaser and Seller
harmless from and against any and all liability, loss, cost, damage, and
expense, including reasonable attorneys’ fees actually incurred and costs of
litigation, Purchaser or Seller shall ever suffer or incur because of any claim
by any agent, salesman, or broker, whether or not meritorious, for any fee,
commission or other compensation with regard to this Agreement or the sale and
purchase of the Property

 

31

 

contemplated hereby, and arising out of any acts or
agreements of Broker.  Seller shall and
does hereby indemnify and hold Purchaser harmless from and against any and all
liability, loss, cost, damage, and expense, including reasonable attorneys’
fees actually incurred and costs of litigation, Purchaser shall ever suffer or
incur because of any claim by any agent, salesman, or broker, whether or not
meritorious, for any fee, commission or other compensation with regard to this
Agreement or the sale and purchase of the Property contemplated hereby, and
arising out of any acts or agreements of Seller, including any claim asserted
by Broker.  Likewise, Purchaser shall and
does hereby indemnify and hold Seller free and harmless from and against any
and all liability, loss, cost, damage, and expense, including reasonable
attorneys’ fees actually incurred and costs of litigation, Seller shall ever
suffer or incur because of any claim by any agent, salesman, or broker, whether
or not meritorious, for any fee, commission or other compensation with respect
to this Agreement or the sale and purchase of the Property contemplated hereby
and arising out of the acts or agreements of Purchaser.  This Section 10.1 shall survive the
Closing or any earlier termination of this Agreement.

 

ARTICLE 11.

MISCELLANEOUS

 

11.1.                     Notices.  Wherever any notice or other communication is
required or permitted hereunder, such notice or other communication shall be in
writing and shall be delivered by overnight courier, hand, facsimile
transmission, or sent by U.S. registered or certified mail, return receipt
requested, postage prepaid, to the addresses or facsimile numbers set out below
or at such other addresses as are specified by written notice delivered in
accordance herewith:

 

	
   

  	
  PURCHASER:

  	
  KRG Development, LLC

  
	
   

  	
   

  	
  30 S. Meridian Street

  
	
   

  	
   

  	
  Suite 1100

  
	
   

  	
   

  	
  Indianapolis, Indiana
  46204

  
	
   

  	
   

  	
  Attention: Daniel R.
  Sink

  
	
   

  	
   

  	
  Facsimile: (317) 577-5605

  
	
   

  	
   

  	
   

  
	
   

  	
  SELLER:

  	
  BVT Institutional
  Investments, Inc.

  
	
   

  	
   

  	
  3350 Riverwood Parkway

  
	
   

  	
   

  	
  Suite 1500

  
	
   

  	
   

  	
  Atlanta, Georgia 30339

  
	
   

  	
   

  	
  Attention: Brad Garner

  
	
   

  	
   

  	
  Facsimile: (770) 618-3567

  

 

32

 

	
   

  	
  with a copy to:

  	
  McGuireWoods LLP

  
	
   

  	
   

  	
  1170 Peachtree Street,
  N.E.

  
	
   

  	
   

  	
  Suite 2100

  
	
   

  	
   

  	
  Atlanta, Georgia 30309

  
	
   

  	
   

  	
  Attn: Stephen D.
  Peterson

  
	
   

  	
   

  	
  Facsimile: (404) 443-5764

  

 

Any notice or other communication (i) mailed as hereinabove
provided shall be deemed effectively given or received on the third (3rd)
business day following the postmark date of such notice or other communication,
(ii) sent by overnight courier or by hand shall be deemed effectively
given or received upon receipt, and (iii) sent by facsimile transmission
shall be deemed effectively given or received on the first Business Day after
the day of transmission of such notice and confirmation of such transmission.

 

11.2                        Possession.  Full and exclusive possession of the
Property, subject only to the Permitted Exceptions and the rights of the
tenants under the Leases, shall be delivered by Seller to Purchaser on the
Closing Date.

 

11.3                        Time
Periods.  If the time period by
which any right, option, or election provided under this Agreement must be
exercised, or by which any act required hereunder must be performed, or by
which the Closing must be held, expires on a Saturday, Sunday, or holiday, then
such time period shall be automatically extended through the close of business
on the next regularly scheduled Business Day.

 

11.4                        [INTENTIONALLY
DELETED]

 

11.5                        Discharge
of Obligations.  The acceptance
by Purchaser of the documents listed in Section 5.1 hereunder shall be
deemed to constitute the full performance and discharge of each and every
warranty and representation made by Seller and Purchaser herein and every agreement
and obligation on the part of Seller and Purchaser to be performed pursuant to
the terms of this Agreement, except those warranties, representations,
covenants and agreements which are specifically provided in this Agreement to
survive Closing. 

 

11.6                        Severability.  This Agreement is intended to be performed in
accordance with, and only to the extent permitted by, all applicable laws,
ordinances, rules and regulations. 
If any provision of this Agreement, or the application thereof to any
person or circumstance, shall, for any reason and to any extent be invalid or
unenforceable, the remainder of this Agreement and the application of such
provision to other persons or circumstances shall not be affected thereby but
rather shall be enforced to the greatest extent permitted by law.

 

11.7                        Construction.  This Agreement shall not be construed more
strictly against one party than against the other merely by virtue of the fact
that this Agreement may have been prepared by counsel for one of the parties,
it being mutually acknowledged and agreed that Seller and Purchaser and their
respective counsel have contributed substantially and materially to the
preparation and negotiation of this Agreement. 
Accordingly, the normal rule of construction to

 

33

 

the effect that any ambiguities are to be resolved
against the drafting party shall not be employed in the interpretation of this
Agreement or any exhibits or amendments hereto.

 

11.8                        Sale
Notification Letters.   Promptly
following the Closing, Purchaser shall deliver the Tenant Notices of Sale to
each of the respective tenants under the Leases and the Other Notices of Sale
to each service provider and leasing agent, the obligations under whose
respective Operating Agreements and Commission Agreements Purchaser has assumed
at Closing.  The provisions of this Section shall
survive the Closing.

 

11.9                        Access
to Records Following Closing. 
Purchaser agrees that for a period of two (2) years following the
Closing, Seller shall have the right during regular business hours, on five (5) days’
written notice to Purchaser, to examine and review at Purchaser’s office (or,
at Purchaser’s election, at the Property), the books and records relating to
the ownership and operation of the Property which were delivered by Seller to
Purchaser at the Closing.  Likewise,
Seller agrees that for a period of two (2) years following the Closing,
Purchaser shall have the right during regular business hours, on five (5) days’
written notice to Seller, to examine and review at Seller’s office, all books,
records and files, if any, retained by Seller relating to the ownership and
operation of the Property by Seller prior to the Closing.  The provisions of this Section shall
survive the Closing.

 

11.10                 Survival.  The provisions of this Article 11 and
the provisions of Sections 3.1(b), 3.1(c), 3.3, 3.7, 4.1, 4.2, 4.4, 5.1, 5.2,
5.4, 6.1(d) and 10.1 shall survive the Closing to the extent (and subject
to any specific limitations) provided in this Agreement and any earlier
termination of this Agreement and shall not be merged into the execution and
delivery of the Warranty Deed.

 

11.11                 General
Provisions.  No failure of either
party to exercise any power given hereunder or to insist upon strict compliance
with any obligation specified herein, and no custom or practice at variance
with the terms hereof, shall constitute a waiver of either party’s right to
demand exact compliance with the terms hereof. 
This Agreement contains the entire agreement of the parties hereto, and
no representations, inducements, promises, or agreements, oral or otherwise,
between the parties not embodied herein shall be of any force or effect.  Any amendment to this Agreement shall not be
binding upon Seller or Purchaser unless such amendment is in writing and
executed by both Seller and Purchaser. 
Subject to the provisions of Section 9.1 hereof, the provisions of
this Agreement shall inure to the benefit of and be binding upon the parties
hereto and their respective heirs, legal representatives, successors, and
permitted assigns.  Time is of the
essence in this Agreement.  The headings
inserted at the beginning of each paragraph are for convenience only, and do
not add to or subtract from the meaning of the contents of each paragraph.  This Agreement shall be construed and
interpreted under the laws of the State of Georgia.  Except as otherwise provided herein, all
rights, powers, and privileges conferred hereunder upon the parties shall be
cumulative but not restrictive to those given by law.  All personal pronouns used in this Agreement,
whether used in the masculine, feminine, or neuter gender shall include all
genders, and all references herein to the singular shall include the plural and
vice versa.

 

11.12                 Attorney’s
Fees.  If Purchaser or Seller
brings an action at law or equity against the other in order to enforce the
provisions of this Agreement or as a result of an alleged default

 

34

 

under this Agreement, the prevailing party in such
action shall be entitled to recover court costs and reasonable attorney’s fees
actually incurred from the non-prevailing party.

 

11.13                 Counterparts.  This Agreement may be executed in one or more
counterparts, each of which when taken together shall constitute one and the
same original.  To facilitate the
execution and delivery of this Agreement, the parties may execute and exchange
counterparts of the signature pages by facsimile, and the signature page of
either party to any counterpart may be appended to any other counterpart.

 

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

 

 

	
   

  	
  SELLER:

  
	
   

  	
   

  
	
   

  	
  U.S. RETAIL INCOME FUND
  IV, LIMITED

  PARTNERSHIP, a Delaware limited partnership

  
	
   

  	
   

  
	
   

  	
  By: BVT Institutional
  Investments, Inc., a Georgia

  corporation, its general partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Brad R. Garner

  
	
   

  	
  Name:

  	
    BRAD R. GARNER

  
	
   

  	
  Title:

  	
      VICE
  PRESIDENT

  
					

 

[SIGNATURES
CONTINUED ON FOLLOWING PAGE]

 

35

 

	
   

  	
  PURCHASER:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  KRG DEVELOPMENT, LLC,
  an Indiana limited

  liability company

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ John A.
  Kite

  
	
   

  	
  Name:

  	
    JOHN A. KITE

  
	
   

  	
  Title:

  	
      PRESIDENT AND CEO

  
					

 

[SIGNATURES CONTINUED ON
FOLLOWING PAGE]

 

1

 

IN WITNESS WHEREOF, the undersigned Broker has joined in the execution
and delivery hereof solely for the purpose of evidencing their rights and
obligations under the provisions of Section 10.1 hereof.

 

	
   

  	
  BROKER:

  
	
   

  	
   

  
	
   

  	
  NEWBRIDGE RETAIL
  ADVISORS

  
	
   

  	
   

  
	
  Date of Execution:

  	
   

  
	
   

  	
  By:

  	
   /s/ William V.
  Barron

  
	
   

  	
  Name:

  	
  WILLIAM V. BARRON

  
	
  March
  3, 2005

  	
  Title:

  	
     MANAGING PARTNER/PRESIDENT

  
	
   

  	
   

  
	
   

  	
  :

  	
   

  
						

 

1

 

EXHIBIT “A”

 

DESCRIPTION
OF LAND

 

1

 

EXHIBIT “B-1”

 

LIST OF
PERSONAL PROPERTY

 

None

 

1

 

EXHIBIT “C”

 

LIST OF
COMMISSION AGREEMENTS

AND
EXISTING MANAGEMENT AGREEMENT

 

I.                                         Commission
Agreements Entered Into By Seller During Its Ownership of Property:

 

Property Management and Leasing Subcontract between BVT Management
Services, Inc. and The Sembler Company dated February 1, 2000.

 

First Amendment to Property Management and Leasing Subcontract between
BVT Management Services, Inc. and The Sembler Company dated May 21,
2003.

 

II.                                     Commission
Agreements Not Entered Into By Seller, But Affecting the Property:

 

None

 

III.                                 Management
Agreement:

 

IV.                                 List
of Tenants and Prospective Tenants for Which Commissions Will be Payable By
Purchaser Post-Closing if a Lease (or Expansion, Renewal or Extension) is
Entered Into Within 90 Days After Closing Date:

 

None

 

1

 

EXHIBIT “D”

FORM OF
ESCROW AGREEMENT

 

THIS ESCROW AGREEMENT (the “Agreement”), made and entered into
this        day of            ,
2004, by and among KRG Development, LLC (hereinafter referred to as “Purchaser”),
U.S. Retail Income Fund IV, Limited Partnership (hereinafter referred to as “Seller”),
and CHICAGO TITLE INSURANCE COMPANY (hereinafter referred to as “Escrow
Agent”).

 

W
I  T  N  E  S  S  E  T  H:

 

WHEREAS, Purchaser and Seller have entered into that certain Purchase
and Sale Agreement fully executed March      ,
2005 (hereinafter referred to as the “Contract”); and

 

WHEREAS, Section 2.3(a) of said Contract provides for
Purchaser’s payment to Escrow Agent, within three (3) days after Purchaser’s
execution and delivery of the Contract to Seller, of One Hundred Twenty
Thousand and No/100 Dollars ($120,000.00) as Initial Earnest Money (as defined
in the Contract) to be held and applied by said Escrow Agent in accordance with
this Agreement; and

 

WHEREAS, Section 2.3(b) of the Contract provides for
Purchaser’s payment to Escrow Agent, no later than three (3) days after
the expiration of the “Inspection Period” (as defined in the Contract) of the
additional sum of One Hundred Thousand and No/100 Dollars ($100,000.00) as the
Additional Earnest Money (as defined in the Contract); and

 

WHEREAS, the parties hereto desire to set forth the terms and
conditions of Escrow Agent’s holding, investment and disbursement of the Escrow
Funds (as hereinafter defined).

 

NOW, THEREFORE, for and in consideration of the agreements set forth in
the Contract and the mutual covenants set forth herein, the parties hereto,
intending to be legally bound, hereby agree as follows:

 

1.                                       Escrow
Agent does hereby acknowledge receipt of a check or wire transfer, payable to
the order of Escrow Agent, in the amount of One Hundred Twenty Thousand and
No/100 Dollars ($120,000.00) as the Initial Earnest Money (as defined in the
Contract).  Said Initial Earnest Money,
together with any Additional Earnest Money actually deposited by Purchaser with
Escrow Agent pursuant to the terms of the Contract, all interest and other
income earned on the Initial Earnest Money, any Additional Earnest Money and
interest thereon being herein referred to as the “Escrow Funds”.  Escrow Agent hereby agrees to hold,
administer, and disburse the Escrow Funds pursuant to this Agreement and the
Contract.  Escrow Agent shall invest the
Escrow Funds in an interest-bearing account. 
All interest or other income shall be earned for the account of
Purchaser and shall be held, invested and disbursed as a part of the Escrow
Funds hereunder.  Purchaser’s Federal Identification
Number for purposes of this Agreement is 35-2020998.  Escrow Agent’s fee, if any, for services
rendered hereunder shall be paid one-half (1/2) by Purchaser and one-half (1/2)
by Seller.

 

2

 

2.                                       At
such time as Escrow Agent receives written notice from either Purchaser or
Seller, or both, setting forth the identity of the party to whom such Escrow
Funds (or portions thereof) are to be disbursed and further setting forth the
specific section or paragraph of the Contract pursuant to which the
disbursement of such Escrow Funds (or portions thereof) is being requested,
Escrow Agent shall disburse such Escrow Funds pursuant to such notice; provided,
however, that if such notice is given by either Purchaser or Seller but
not both, Escrow Agent shall (i) promptly notify the other party (either
Purchaser or Seller, as the case may be) that Escrow Agent has received a
request for disbursement, and (ii) withhold disbursement of such Escrow
Funds for a period of ten (10) days after receipt of such notice of
disbursement and if Escrow Agent receives written notice from either Purchaser
or Seller within said ten (10) day period which notice countermands the
earlier notice of disbursement, then Escrow Agent shall withhold such
disbursement until both Purchaser and Seller can agree upon a disbursement of
such Escrow Funds.  Purchaser and Seller
hereby agree to send to the other, pursuant to Paragraph 6 below, a
duplicate copy of any written notice sent to Escrow Agent and requesting any
such disbursement or countermanding a request for disbursement.

 

3.                                       In
performing any of its duties hereunder, Escrow Agent shall not incur any
liability to anyone for any damages, losses, or expenses, except for willful
default, gross negligence, fraud or breach of trust, and it shall accordingly
not incur any such liability with respect to (i) any action taken or
omitted in good faith upon advice of its legal counsel given with respect to
any questions relating to the duties and responsibilities of Escrow Agent under
this Agreement, or (ii) any action taken or omitted in reliance upon any
instrument, including any written notice or instruction provided for in this
Agreement, not only as to its due execution and the validity and effectiveness
of its provisions but also as to the truth and accuracy of any information
contained therein, which Escrow Agent shall in good faith believe to be
genuine, to have been signed or presented by a proper person or persons, and to
conform with the provisions of this Agreement.

 

4.                                       Notwithstanding
the provisions of Paragraph 2 above, in the event of a dispute between
Purchaser and Seller sufficient in the sole discretion of Escrow Agent to
justify its doing so or in the event that Escrow Agent has not disbursed the
Escrow Funds on or before the date which is six (6) months from the date
hereof, Escrow Agent shall be entitled to tender the Escrow Funds into the
registry or custody of any court of competent jurisdiction, together with such
legal pleadings as it may deem appropriate, and thereupon be discharged from
all further duties and liabilities under this Agreement.  Any such legal action may be brought in such
court as Escrow Agent shall determine to have jurisdiction thereof.

 

5.                                       Purchaser
and Seller hereby agree to indemnify and hold Escrow Agent harmless against any
and all losses, claims, damages, liabilities, and expenses, including, without
limitation, reasonable costs of investigation and legal counsel fees, which may
be imposed upon Escrow Agent or incurred by Escrow Agent in connection with the
performance of its duties hereunder, including, without limitation, any
litigation arising from this Agreement or involving the subject matter hereof.

 

6.                                       Wherever
any notice or other communication is required or permitted hereunder, such
notice or other communication shall be in writing and shall be delivered by
overnight

 

3

 

courier, hand delivery, or sent by U.S. registered or
certified mail, return receipt requested, postage prepaid, to the addresses set
out below or at such other addresses as are specified by written notice
delivered in accordance herewith:

 

	
  PURCHASER:

  	
   

  	
  KRG Development, LLC

  
	
   

  	
   

  	
  30 S. Meridian Street

  
	
   

  	
   

  	
  Suite 1100

  
	
   

  	
   

  	
  Indianapolis, Indiana 46204

  
	
   

  	
   

  	
  Attention: Daniel R.
  Sink

  
	
   

  	
   

  	
  Facsimile: (317) 577-5605

  
	
   

  	
   

  	
   

  
	
  SELLER:

  	
   

  	
  BVT Institutional
  Investments, Inc.

  
	
   

  	
   

  	
  3350 Riverwood Parkway

  
	
   

  	
   

  	
  Suite 1500

  
	
   

  	
   

  	
  Atlanta, Georgia 30339

  
	
   

  	
   

  	
  Attention: Brad Garner

  
	
   

  	
   

  	
  Facsimile: (770) 618-3567

  
	
   

  	
   

  	
   

  
	
  with a copy to:

  	
   

  	
  McGuireWoods LLP

  
	
   

  	
   

  	
  1170 Peachtree Street,
  N.E.

  
	
   

  	
   

  	
  Suite 2100

  
	
   

  	
   

  	
  Atlanta, Georgia 30309

  
	
   

  	
   

  	
  Attn: Stephen D.
  Peterson

  
	
   

  	
   

  	
  Facsimile: (404) 443-5764

  
	
   

  	
   

  	
   

  
	
  ESCROW
  AGENT:

  	
   

  	
  Chicago Title Insurance
  Company

  
	
   

  	
   

  	
  101 W. Ohio Street, Suite 1100

  
	
   

  	
   

  	
  Indianapolis, Indiana
  46204

  
	
   

  	
   

  	
  Attention: Alan Kolb

  
	
   

  	
   

  	
  Facsimile: (317) 684-3843

  

 

Any notice or other communication (i) mailed as hereinabove
provided shall be deemed effectively given or received on the third (3rd)
business day following the postmark date of such notice or other communication,
(ii) sent by overnight courier or by hand shall be deemed effectively
given or received upon receipt, and (iii) sent by facsimile transmission
shall be deemed effectively given or received on the first business day after
the day of transmission of such notice and confirmation of such transmission.

 

7.                                       This
Agreement shall be binding upon and shall inure to the benefit of the parties
hereto and their respective heirs, executors, administrators, personal
representatives, successors, and assigns. 
Any and all rights granted to any of the parties hereto may be exercised
by their agents or personal representatives.

 

8.                                       Time
is of the essence of this Agreement.

 

4

 

9.                                       If
proceedings shall be instituted before any court of competent jurisdiction for
the resolution of any dispute arising under this Agreement between any parties
hereto, then upon final resolution of such dispute, the prevailing party in
such dispute shall be promptly paid by the nonprevailing party therein all of
such prevailing party’s attorneys’ fees and expenses, court costs and costs of
appeal actually incurred in connection with such proceeding.

 

10.                                 This
Agreement is governed by and is to be construed under the laws of the State of
Georgia and may be executed in several counterparts, each of which shall be
deemed an original, and all such counterparts together shall constitute one and
the same instrument.

 

[Signatures
begin on next page]

 

5

 

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

 

	
   

  	
  SELLER:

  
	
   

  	
   

  
	
   

  	
  U.S. RETAIL INCOME FUND
  IV, LIMITED

  PARTNERSHIP, a Delaware limited partnership

  
	
   

  	
   

  
	
   

  	
  By:  BVT Institutional Investments, Inc., a
  Georgia

  corporation, its general partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  PURCHASER:

  
	
   

  	
   

  
	
   

  	
  KRG DEVELOPMENT, LLC,
  an Indiana limited

  liability company

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ESCROW AGENT:

  
	
   

  	
   

  
	
   

  	
  CHICAGO TITLE INSURANCE
  COMPANY

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
  (CORPORATE SEAL)

  
					

 

6

 

EXHIBIT “E”

 

LIST OF
EXISTING ENVIRONMENTAL REPORTS

 

Phase I Environmental
Site Assessment update dated January 6, 1995, prepared by Geotechnical and
Environmental Consultants, Inc.

 

Phase I Environmental
Site Assessment dated February 24, 1997, prepared by PSI.

 

1

 

EXHIBIT “F”

 

RENT ROLL

 

1

 

EXHIBIT “G”

 

EXCEPTION
SCHEDULE

 

None.

 

1

 

EXHIBIT “H”

 

LIST OF
OPERATING AGREEMENTS

 

Roof Survey Agreement
between BVT Management Services, Inc. and RS&M dated September 3,
2003.

 

Services Agreement
between BVT Management Services, Inc. and Clean Sweep & Vac, Inc.
dated January 1, 2005 for porter and sweeping services.

 

Services Agreement
between BVT Management Services, Inc. and Randy Thornton Lawn Maintenance
dated November 14, 2003 for landscaping services.

 

1

 

EXHIBIT “I”

 

FORM OF
TENANT ESTOPPEL CERTIFICATE

 

[TO BE PROVIDED BY
PURCHASER]

 

1

 

EXHIBIT “J”

 

PROPERTY
TAX APPEALS

 

None.

 

1

 

EXHIBIT “K”

 

TENANT
INDUCEMENT COSTS AND LEASING COMMISSIONS

RE
CURRENT TENANTS FOR WHICH SELLER IS RESPONSIBLE

 

	
  Beall’s tenant
  improvement allowance

  	
   

  	
  $2,000,000

  

 

1

 

SCHEDULE 1

 

FORM OF
SPECIAL WARRANTY DEED

 

 

AFTER RECORDING RETURN
TO:

 

 

	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  

 

 

Grantee TIN:

 

SPECIAL WARRANTY DEED

 

This Indenture, made this
    day of                    ,
2005 A.D., between U.S. Retail Income Fund IV, Limited Partnership, GRANTOR,
and KRG Development, LLC, an Indiana limited liability company, whose address
is 30 S. Meridian Street, Suite 1100, Indianapolis, Indiana 46204,
GRANTEE.

 

Witnesseth that the
GRANTOR, for and in consideration of the sum of Ten Dollars ($10) and other
good and valuable consideration to the GRANTOR in hand paid by GRANTEE, the
receipt whereof is hereby acknowledged, has granted, bargained and sold to the
said GRANTEE and GRANTEE’S heirs, successors and assigns forever, the following
described land, situate, lying and being in the County of Orange, State of
Florida, to wit:

 

SEE EXHIBIT “A” ATTACHED
HERETO

 

Subject to those matters
set out in Exhibit “B” attached hereto.

 

Together with all
tenements, hereditaments and appurtenances thereto belonging or in anywise appertaining.

 

 

To Have and to Hold, the
same in fee simple forever.

 

And the Grantor hereby
covenants with said Grantee that Grantor is lawfully seized of said land in fee
simple; that Grantor has good right and lawful authority to sell and convey
said land; that Grantor hereby fully warrants the title to said land and will
defend the same against the lawful claims of all persons claiming by, through
or under Grantor.

 

In Witness Whereof, the
Grantor has hereunto set its hand and seal the day and year first above
written.

 

Signed, sealed and
delivered in our presence:

 

	
   

  	
   

  	
  GRANTOR:

  
	
   

  	
   

  	
   

  
	
  WITNESSES:

  	
   

  	
  U.S. RETAIL INCOME FUND
  IV,

  
	
   

  	
   

  	
  Limited Partnership, a
  Delaware limited partnership

  
	
   

  	
   

  	
   

  	
   

  
	
  Witness Signature

  	
   

  	
   

  
	
  Print Name:

  	
   

  	
   

  	
   

  	
  By:

  	
  BVT Institutional
  Investments, Inc.,

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  a Georgia corporation,
  its general partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
  Witness Signature

  	
   

  	
   

  	
  Name:

  	
   

  
	
  Print Name:

  	
   

  	
   

  	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [SEAL]

  
										

 

 

STATE OF GEORGIA

COUNTY OF COBB

 

The foregoing instrument
was acknowledged before me this        day of         
2004, by                            
as                        
of BVT Institutional Investments, Inc., a Georgia corporation, in its
capacity as general partner of U.S. Retail Income Fund IV, Limited Partnership,
a Delaware limited partnership.  He is
personally known to me.

 

	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Notary Public -
  (Signature)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (Print Name of Notary
  Public)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  My commission expires:

  

 

 

EXHIBIT “A”

 

LEGAL DESCRIPTION

 

 

EXHIBIT “B”

 

PERMITTED
EXCEPTIONS

 

 

SCHEDULE 2

 

FORM OF
ASSIGNMENT AND ASSUMPTION OF LEASES

AND
SECURITY DEPOSITS AND LEASING

COMMISSION
OBLIGATIONS ARISING AFTER CLOSING 

 

ASSIGNMENT
AND ASSUMPTION OF LEASES AND SECURITY DEPOSITS

 

THIS ASSIGNMENT AND ASSUMPTION OF LEASES AND SECURITY DEPOSITS (“Assignment”) is made and entered into as of the      
day of           , 200  ,
by and between U.S. Retail Income Fund    , Limited Partnership,
a Delaware limited partnership (“Assignor”),
and KRG Development, LLC, an Indiana limited liability company (“Assignee”).

 

W I T N E
S S E T H:

 

WHEREAS, contemporaneously with
the execution hereof, Assignor has conveyed to Assignee certain real property
commonly known as “                  
Shopping Center” located in          ,
            
County,           , and more
particularly described on Exhibit “A”
attached hereto (the “Property”) ; and

 

WHEREAS, in connection with said
conveyance, Assignor desires to transfer and assign to Assignee all of Assignor’s
right, title and interest in and to
certain leases affecting the Property, together with the security deposits and
future leasing commission obligations associated therewith, and, subject to the
terms and conditions hereof, Assignee desires to assume Assignor’s obligations
in respect of said leases, security deposits and leasing commission
obligations;

 

NOW, THEREFORE, for and in
consideration of the sum of Ten and No/100 Dollars ($10.00) in hand paid to
Assignor by Assignee, Assignee’s purchase of the Property and other good and
valuable consideration, the receipt, adequacy and sufficiency of which are
hereby acknowledged by Assignor and Assignee, Assignor and Assignee hereby
covenant and agree as follows:

 

1.                                       Assignor
hereby unconditionally and absolutely assigns, transfers, sets over and conveys
to Assignee, without warranty or representation of any kind, express or
implied, except as set forth below and except for any warranty or
representation contained in that certain Purchase and Sale Agreement dated            
   , 2005, between Assignor and Assignee (the “Contract”), applicable to the property assigned herein, all
of Assignor’s right, title and interest in, to and under (a) those certain
leases set forth on Exhibit “B”
attached hereto and by this reference made a part hereof affecting or relating
to the Property or the improvements thereon (the “Leases”), (b) those certain tenant deposits presently held by
Assignor and enumerated on Exhibit “B”
attached hereto (the “Security Deposits”),
and (c) those certain leasing commission agreements more particularly
described on Exhibit “C” attached hereto and
made a part hereof (the “Commission Agreements”),
subject to the matters more particularly described on Exhibit “D”
attached hereto and made a part hereof.

 

 

2.                                       Assignee,
by acceptance hereof, hereby assumes and agrees to perform all of Assignor’s
duties and obligations under the Leases arising from and after the date hereof,
including, without limitation, Assignor’s obligations to pay leasing
commissions due and payable in respect of any renewal or expansion of any of
the existing Leases, or any new lease with a tenant under any of the Leases,
after the date hereof pursuant to the Commission Agreements, provided that any
renewal or expansion of any of the Existing Leases, or any new lease with a
tenant under any of the Leases  that was
entered into after the Effective Date of the Contract (as defined therein) and
prior to the date hereof was approved (or deemed approved) by Purchaser as
required in the Contract.

 

3.                                       All
representations and warranties of Assignor made in the Contract in respect of
the Leases, the Security Deposits and Commission Agreements, as recertified to
Assignee pursuant to that certain Seller’s Certificate as to Representations of
even date herewith from Assignor to Assignee, shall survive for a period of one
(1) year from the date hereof, and upon the expiration thereof shall be of
no further force or effect except to the extent that with respect to any
particular alleged breach, Assignee shall give Assignor written notice prior to
the expiration of said one (1) year period of such alleged breach with
reasonable detail as to the nature of such breach and files an action against
Assignor with respect thereto within ninety (90) days after the giving of such
notice. Notwithstanding anything to the contrary contained in the Contract or this
Assignment, in no event shall Assignor’s total liability for any such breach or
breaches exceed, in the aggregate, Seven Hundred Fifty Thousand and No/100
Dollars ($750,000). In no event shall Assignor be liable for, nor shall
Assignee seek, any consequential, indirect or punitive damages; and in no event
whatsoever shall any claim for a breach of any representation or warranty of
Assignor be actionable or payable if the breach in question results from or is
based on a condition, state of facts or other matter which was actually known
to Assignee prior to the date hereof.

 

4.                                       This
Assignment shall inure to the benefit of and be binding upon Assignor and
Assignee, their respective legal representatives, successors and assigns.  This Assignment may be executed in
counterparts, each of which shall be deemed an original and all of such
counterparts together shall constitute one and the same Assignment.

 

 

IN WITNESS WHEREOF, the duly
authorized representatives of Assignor and Assignee have caused this Assignment
to be properly executed under seal as of this day and year first above written.

 

	
   

  	
  ASSIGNOR:

  
	
   

  	
   

  
	
   

  	
  U.S. RETAIL INCOME FUND
     , LIMITED

  PARTNERSHIP, a Delaware limited partnership

  
	
   

  	
   

  
	
   

  	
  By:  BVT Institutional Investments, Inc., a
  Georgia

  corporation, its general partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (CORPORATE SEAL)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ASSIGNEE:

  
	
   

  	
   

  
	
   

  	
  KRG CAPITAL, LLC, an
  Indiana limited liability company

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

 

EXHIBIT A

Legal
Description

 

4

 

EXHIBIT B

 

List of
Leases and Security Deposits

 

5

 

EXHIBIT C

 

Lease
Commission Agreements

 

6

 

EXHIBIT D

 

Permitted
Exceptions

 

7

 

SCHEDULE 3

 

FORM OF
BILL OF SALE TO PERSONAL PROPERTY

 

BILL OF SALE

 

THIS BILL OF SALE (“Bill of Sale”)
is made and entered into as of the       day of               ,
200  , by U.S. Retail Income Fund    , Limited
Partnership, a Delaware limited partnership (“Seller”), for the benefit of KRG Development, LLC, an Indiana
limited liability company (“Purchaser”).

 

W I T N E S S E T H:

 

WHEREAS, contemporaneously with
the execution hereof, Seller has conveyed to Purchaser certain improved real
property commonly known as “                    
Shopping Center” located in              ,
            
County,              
and more particularly described on Exhibit “A”
attached hereto (the “Property”); and

 

WHEREAS, in connection with said
conveyance, Seller desires to transfer and convey to Purchaser all of Seller’s
right, title and interest in and to certain tangible personal property,
inventory and fixtures located in and used exclusively in connection with the
ownership, maintenance or operation of the Property and the Improvements
thereon;

 

NOW, THEREFORE, for and in
consideration of the sum of Ten and No/100 Dollars ($10.00) in hand paid to
Seller by Purchaser, the premises and other good and valuable consideration,
the receipt, adequacy and sufficiency of which are hereby acknowledged by
Seller and Purchaser, it is hereby agreed as follows:

 

1.                                       All
capitalized terms not defined herein shall have the meanings ascribed to such
terms as set forth in that certain Purchase and Sale Agreement dated as of            ,
2005, between Seller and Purchaser (the “Sales Contract”).

 

2.                                       Seller
hereby unconditionally and absolutely transfers, conveys and sets over to
Purchaser, without warranty or representation of any kind, express or implied,
all right, title and interest of Seller in any and all furniture (including
common area furnishings and interior landscaping items), carpeting, draperies,
appliances, personal property (excluding any computer software which either is
licensed to Seller or Seller deems proprietary), machinery, apparatus and
equipment owned by Seller and currently used exclusively in the operation,
repair and maintenance of the Land and Improvements and situated thereon,
including, without limitation, all of Seller’s right, title and interest in and
to those items of tangible personal property set forth on Exhibit “B”
attached hereto and all books, records and files (excluding any appraisals,
budgets, strategic plans for the Property, internal analyses, information
regarding the marketing of the Property for sale, submissions relating to
Seller’s obtaining of corporate authorization, attorney and accountant work
product, attorney-client privileged documents, or other information in the
possession or control of Seller or Seller’s property manager which Seller deems

 

1

 

proprietary) relating to the Land and Improvements
(the “Personal Property”).  The Personal Property does not include any property owned by tenants, contractors or licensees.

 

3.                                       The
Personal Property is hereby transferred and conveyed subject to those certain
matters more particularly described on Exhibit “C”
attached hereto and made a part hereof.

 

4.                                       This
Bill of Sale shall inure to the benefit of Purchaser, and be binding upon
Seller, and their respective legal representatives, transfers, successors and
assigns.

 

IN WITNESS WHEREOF, Seller has caused this Bill of Sale to be executed
under seal as of this day and year first above written.

 

	
   

  	
  U.S. RETAIL INCOME FUND
     , LIMITED

  PARTNERSHIP, a Delaware limited partnership

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:  BVT Institutional Investments, Inc., a
  Georgia

  corporation, its general partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

2

 

Exhibit “A”

 

Legal
Description

 

3

 

Exhibit “B”

 

List of
Personal Property

 

4

 

Exhibit “C”

 

Permitted
Encumbrances

 

5

 

SCHEDULE 4

 

FORM OF
ASSIGNMENT AND ASSUMPTION OF OPERATING AGREEMENTS

 

ASSIGNMENT AND ASSUMPTION OF
CONTRACTS

 

THIS ASSIGNMENT AND ASSUMPTION OF CONTRACTS (“Assignment”)
is made and entered into as of the       day of           ,
200  , by and between U.S. RETAIL
INCOME FUND    , LIMITED PARTNERSHIP, a Delaware limited
partnership (“Assignor”) and KRG DEVELOPMENT,
LLC, an Indiana limited liability company (“Assignee”).

 

W I T N E S S E T H:

 

WHEREAS, contemporaneously with
the execution hereof, Assignor has conveyed to Assignee certain real property
commonly known as “                 
Shopping Center” in              ,
         County,
            ,
and more particularly described on Exhibit “A”
attached hereto (the “Property”);
and

 

WHEREAS, in connection with said
conveyance, Assignor desires to transfer and assign to Assignee, to the extent
assignable, all of Assignor’s right, title and interest in and to certain
service contracts related to the Property, and to the extent assignable, all
guaranties and warranties given in connection with the operation, construction,
improvement, alteration or repair of the Property; and Assignee desires to
assume Assignor’s obligations under said service contracts;

 

NOW, THEREFORE, for and in
consideration of the sum of Ten and No/100 Dollars ($10.00) in hand paid to
Assignor by Assignee, the Premises and other good and valuable consideration,
the receipt, adequacy and sufficiency of which are hereby acknowledged by
Assignor and Assignee, Assignor and Assignee hereby covenant and agree as
follows:

 

1.                                       Assignor
hereby unconditionally and absolutely assigns, transfers, sets over and conveys
to Assignee, to the extent assignable, and without warranty or representation
of any kind, express or implied, except as set forth below and except for any
warranty or representation contained in that certain Purchase and Sale
Agreement dated            
  , 2005, between Assignor and Assignee, (the “Contract”)
applicable to the property assigned herein, all of Assignor’s right, title and
interest in, to and under those certain contracts set forth on Exhibit “B” attached hereto and by this reference made
a part hereof (the “Service Contracts”),
subject to the matters set forth on Exhibit “C”
attached hereto and by this reference made a part hereof.

 

2.                                       Assignee,
by acceptance hereof, hereby assumes and agrees to perform all of Assignor’s
duties and obligations under the Service Contracts arising from and after the
date hereof.

 

1

 

3.                                       All
representations and warranties of Assignor made in the Contract in respect of
the Service Contracts, as recertified to Assignee pursuant to that certain
Seller’s Certificate as to Representations of even date herewith from Assignor
to Assignee, shall survive for a period of one (1) year from the date
hereof, and upon the expiration thereof shall be of no further force or effect
except to the extent that with respect to any particular alleged breach,
Assignee shall give Assignor written notice prior to the expiration of said one
(1) year period of such alleged breach with reasonable detail as to the
nature of such breach and files an action against Assignor with respect thereto
within ninety (90) days after the giving of such notice. Notwithstanding anything
to the contrary contained in the Contract or this Assignment, in no event shall
Assignor’s total liability for any such breach or breaches exceed, in the
aggregate, Seven Hundred Fifty Thousand and No/100 Dollars ($750,000). In no
event shall Assignor be liable for, nor shall Assignee seek, any consequential,
indirect or punitive damages; and in no event whatsoever shall any claim for a
breach of any representation or warranty of Assignor be actionable or payable
if the breach in question results from or is based on a condition, state of
facts or other matter which was actually known to Assignee prior to the date
hereof.

 

4                                          This
Assignment shall inure to the benefit and be binding upon Assignor and Assignee
and their respective legal representatives, successors and assigns.

 

IN WITNESS WHEREOF, the duly authorized representatives of Assignor and
Assignee have caused this Assignment to be properly executed under seal as of
this day and year first above written.

 

	
   

  	
  ASSIGNOR:

  
	
   

  	
   

  
	
   

  	
  U.S. RETAIL INCOME FUND
     , LIMITED

  PARTNERSHIP, a Delaware limited partnership

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:  BVT Institutional Investments, Inc., a
  Georgia

  corporation, its general partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

2

 

	
   

  	
  ASSIGNEE

  
	
   

  	
   

  
	
   

  	
  KRG DEVELOPMENT, LLC, an
  Indiana

  limited liability company

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

3

 

Exhibit A

 

Legal
Description

 

4

 

Exhibit B

 

Assigned
Contracts

 

None

 

5

 

Exhibit C

 

Permitted
Exceptions

 

6

 

SCHEDULE 4.1(M)

 

DISCLOSURE
OF CONDEMNATION

 

 

SCHEDULE 5

 

FORM OF
GENERAL ASSIGNMENT OF

SELLER’S
INTEREST IN INTANGIBLE PROPERTY

 

GENERAL ASSIGNMENT

 

THIS GENERAL ASSIGNMENT (“Assignment”)
is made and entered into as of the       day of           ,
2005 by U.S. Retail Income Fund __, Limited Partnership a Delaware limited
partnership (“Assignor”) to KRG Development, LLC, an Indiana limited liability
company (“Assignee”).

 

W I T N E S S E T H:

 

WHEREAS, contemporaneously with
the execution hereof, Assignor has conveyed to Assignee certain real property
commonly known as “                    
Shopping Center” located in              ,
              
County,              ,
and more particularly described on Exhibit “A”
attached hereto and made a part hereof (the “Property”);
and

 

WHEREAS, in connection with said
conveyance, Assignor desires to transfer and assign to Assignee all of Assignor’s
right, title and interest (if any) in
and to all assignable trade names, entitlements and other intangible property
used and owned by Assignor (if any) in connection with the Property, subject to
the matters set forth on Exhibit “B”
attached hereto and made a part hereof;

 

NOW, THEREFORE, for and in
consideration of the sum of Ten and No/100 Dollars ($10.00) in hand paid to
Assignor by Assignee, the premises and other good and valuable consideration,
the receipt, adequacy and sufficiency of which are hereby acknowledged by
Assignor and Assignee, Assignor and Assignee hereby covenant and agree as
follows:

 

1.                                       Assignor
hereby unconditionally and absolutely assigns, transfers, sets over and conveys
to Assignee, to the extent assignable, and without warranty or representation
of any kind, express or implied, except as set forth below and except for any
warranty or representation contained in that certain Purchase and Sale
Agreement dated as of            
  , 2005, between Assignor and Assignee (the “Contract”)
applicable to the property assigned herein, all of Assignor’s right, title and
interest (if any) in and to all intangible property, if any, owned by Assignor
related to the real property and improvements constituting the Property (excluding
any computer software which either is licensed to Assignor or Assignor deems
proprietary), including, without limitation, Assignor’s rights and interests in
and to the following (i) the name “                      
Shopping Center”, (ii) all assignable plans and specifications and other
architectural and engineering drawings for the Land and Improvements (as
defined in the Contract); (iii) all assignable warranties or guaranties
given or made in respect of the Improvements or Personal Property (as defined
in the Contract); and (iv) all transferable consents, authorizations,
variances or waivers, licenses, permits and approvals from any

 

 

governmental
or quasi-governmental agency, department, board, commission, bureau or other
entity or instrumentality solely in respect of the Land or Improvements.

 

2.                                       All
representations and warranties of Assignor made in the Contract in respect of
the Intangible Property (as defined in the Contract), as recertified to
Assignee pursuant to that certain Seller’s Certificate as to Representations of
even date herewith from Assignor to Assignee, shall survive for a period of one
(1) year from the date hereof, and upon the expiration thereof shall be of
no further force or effect except to the extent that with respect to any
particular alleged breach, Assignee shall give Assignor written notice prior to
the expiration of said one (1) year period of such alleged breach with
reasonable detail as to the nature of such breach and files an action against
Assignor with respect thereto within ninety (90) days after the giving of such
notice. Notwithstanding anything to the contrary contained in the Contract or
this Assignment, in no event shall Assignor’s total liability for any such
breach or breaches exceed, in the aggregate, Seven Hundred Fifty Thousand and
No/100 Dollars ($750,000). In no event shall Assignor be liable for, nor shall
Assignee seek, any consequential, indirect or punitive damages; and in no event
whatsoever shall any claim for a breach of any representation or warranty of
Assignor be actionable or payable if the breach in question results from or is
based on a condition, state of facts or other matter which was actually known
to Assignee prior to the date hereof.

 

3.                                       This
Assignment shall inure to the benefit and be binding upon Assignor and Assignee
and their respective legal representatives, successors and assigns.

 

IN WITNESS WHEREOF, the duly
authorized representative of Assignor has caused this Assignment to be properly
executed under seal as of this day and year first above written.

 

	
   

  	
  ASSIGNOR:

  
	
   

  	
   

  
	
   

  	
  U.S. RETAIL INCOME FUND
     , LIMITED

  PARTNERSHIP, a Delaware limited partnership

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:  BVT Institutional Investments, Inc., a
  Georgia

  corporation, its general partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

2

 

Exhibit “A”

 

Legal
Description

 

3

 

Exhibit “B”

 

Permitted
Exceptions

 

4

 

SCHEDULE 6

 

FORM OF
SELLER’S AFFIDAVIT

(FOR
PURCHASER’S TITLE INSURANCE PURPOSES)

 

SELLER’S
AFFIDAVIT

 

STATE OF GEORGIA

 

COUNTY OF COBB

 

Personally appeared before me, the undersigned deponent who being duly
sworn, deposes and says on oath the following to the best of his knowledge and
belief:

 

1.                                       That
the undersigned is the general partner of U.S. Retail Income Fund    ,
Limited Partnership, a Delaware limited partnership (hereinafter referred to as
“Owner”) and as such general partner of
the Owner, the undersigned has knowledge of the facts
sworn to in this Affidavit.

 

2.                                       That
Owner is the owner of certain real property located in                
County,                ,
being described on EXHIBIT A,
attached hereto and made a part hereof (hereinafter referred to as the “Property”), subject to those matters set forth on EXHIBIT B, attached hereto and made a part hereof.

 

3.                                       That
Owner is in possession of the Property, and to the best knowledge and belief of
the undersigned, no other parties have any claim to possession of the Property,
except as set forth on EXHIBIT B
hereto.

 

4.                                       That
the undersigned is not aware of and has received no notice of any pending
suits, proceedings, judgments, bankruptcies, liens or executions against the
Owner which affect title to the Property except for any matters set forth on EXHIBIT B-1 hereto.

 

5.                                       That
except as may be set forth on EXHIBIT B  hereto, there are no unpaid or unsatisfied security deeds,
mortgages, claims of lien, special assessments for sewer or streets, or ad
valorem taxes which constitute a lien against the Property or any part thereof.

 

6.                                       That,
except as may be set forth on EXHIBIT C
attached hereto and made a part hereof, no improvements or repairs have been
made upon the Property at the instance of Owner within the ninety-five (95)
days immediately preceding the date hereof for which the cost has not been
paid; and, except as may be set forth on EXHIBIT C
hereto, there are no outstanding bills for labor or materials used in making
improvements or repairs on the Property at the instance of Owner or for
services of architects, surveyors, or engineers incurred in connection
therewith at the instance of Owner.

 

1

 

7.                                       That
Owner is not a foreign person, a foreign corporation, foreign partnership, foreign
trust or foreign estate, as those terms are defined in the Internal Revenue
Code.  The federal employer
identification number of the Owner is                
and Owner’s address is 3350 Riverwood Parkway, Suite 1500, Atlanta,
Georgia 30339.  This statement is made by
the undersigned in compliance with Section 1445 of the Internal Revenue
Code to exempt any transferee of the Property from withholding the tax required
upon a foreign transferor’s disposition of a U.S. real property interest

 

8.                                       That,
except for NewBridge Retail Advisors (hereinafter referred to as “Broker”) engaged by Owner in connection with the sale of the
Property to KRG Development, LLC, an Indiana limited liability company
(hereinafter referred to as “Purchaser”) and
those certain leasing agents (hereinafter referred to as the “Leasing Agents”) set forth on EXHIBIT D
attached hereto and made a part hereof in connection with certain brokers’
commission agreements, Owner has not engaged any “broker’s” services (as
defined in O.C.G.A. § 44-14-601) with regard to the purchase, sale,
management, lease, option or other conveyance of any interest in the Property;
as to Broker, the Closing Statement executed in connection with the sale of the
Property to Purchaser reflects payment in full satisfaction of all  amounts owed to Broker with respect to the
Property; as to the Leasing Agents, all amounts owed to the Leasing Agents
through the date hereof have been paid in full as of the date hereof; and as of
the date hereof, Owner has not received any notice of lien from Broker, any of
the Leasing Agents or any other real estate broker, salesman, agent or similar
person relating to the Property.

 

9.                                       That
to Owner’s knowledge there are no boundary disputes affecting the Property.

 

10.                                 That
this Affidavit is made to induce Chicago Title Insurance Company to insure
title to the Property, without exception other than as set forth on EXHIBIT B hereto, relying on information in this
document.

 

	
  Sworn to and subscribed
  before me,                                                 

  	
  BVT Institutional
  Investments, Inc.

  
	
   

  	
   

  
	
  this
        day of             ,
  200  .

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Notary Public

  	
   

  
	
   

  	
   

  
	
  My Commission Expires:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  (NOTARIAL
  SEAL)

  	
   

  
							

 

2

 

EXHIBIT A

 

Legal Description

 

3

 

EXHIBIT B

 

Existing
Encumbrances

 

4

 

EXHIBIT B-1

 

List of any
Pending Actions regarding Tenant Matters

 

5

 

EXHIBIT C

 

List of any
Contractors, Materialmen or Suppliers Not Yet Paid in Full

 

6

 

EXHIBIT D

 

Leasing Commission
Agreements

 

7

 

SCHEDULE 7

 

FORM OF
SELLER’S CERTIFICATE

(AS TO
SELLER’S REPRESENTATIONS AND WARRANTIES)

 

SELLER’S
CERTIFICATE AS TO REPRESENTATIONS

 

THIS SELLER’S CERTIFICATE AS TO REPRESENTATIONS (this
“Certificate”) is given and made by
U.S. Retail Income Fund IV, Limited Partnership a Delaware limited partnership
(“Seller”), this     day
of               ,
200  , for the benefit of KRG Development, LLC, an Indiana limited
liability company (“Purchaser”).

 

Pursuant to the provisions of that certain Purchase and Sale Agreement,
dated as of                 ,
2005, between Seller and KRG Development, LLC (the “Contract”),
which has since been assigned to Purchaser, for the purchase and sale of
certain real property commonly known as Indian River Square Shopping Center
(the “Property”), Seller certifies that
except as may be set forth to the contrary in EXHIBIT “B”
attached hereto and made a part hereof, all of the representations and
warranties of Seller contained in the Contract remain true and correct in all
material respects as of the date hereof; and

 

The representations and warranties contained herein shall survive for a
period of one (1) year after the date hereof, and upon the expiration
thereof shall be of no further force or effect except to the extent that with
respect to any particular alleged breach, Purchaser shall give Seller written
notice prior to the expiration of said one (1) year period of such alleged
breach with reasonable detail as to the nature of such breach and files an
action against Seller with respect thereto within ninety (90) days after the
giving of such notice. Notwithstanding anything to the contrary contained in
the Contract or this Certificate, in no event shall Seller’s total liability
for any such breach or breaches exceed, in the aggregate, Seven Hundred Fifty
Thousand and No/100 Dollars ($750,000). In no event shall Seller be liable for,
nor shall Purchaser seek, any consequential, indirect or punitive damages; and
in no event whatsoever shall any claim for a breach of any representation or
warranty of Seller be actionable or payable if the breach in question results
from or is based on a condition, state of facts or other matter which was
actually known to Purchaser prior to the date hereof.

 

[signatures begin on next page]

 

1

 

IN WITNESS WHEREOF,
Seller has caused this Certificate to be executed by its duly authorized
representative as of the day and year first above written.

 

	
   

  	
  U.S. RETAIL INCOME FUND IV,
  LIMITED

  PARTNERSHIP, a Delaware limited partnership

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:  BVT Institutional Investments, Inc., a
  Georgia

  corporation, its general partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

2

 

EXHIBIT “A”

 

LEGAL
DESCRIPTION

 

3

 

EXHIBIT “B”

 

EXCEPTIONS
TO REPRESENTATIONS AND WARRANTIES

 

4

 

SCHEDULE 8

 

FORM OF
SELLER’S FIRPTA AFFIDAVIT

 

 

CERTIFICATION
OF NON-FOREIGN STATUS

 

Section 1445 of the Internal Revenue Code provides that a
transferee of a U.S. real property interest must withhold tax if the
transferor is a foreign person.  To inform the transferee that withholding
of tax is not required upon the disposition of a U.S. real property
interest by U.S. Retail Income Fund __, Limited Partnership, a Delaware limited
partnership (the “Seller”), the Seller hereby certifies as follows:

 

1.                                       The
Seller is not a foreign corporation, foreign partnership, foreign trust, or
foreign estate (as those terms are defined in the Internal Revenue Code and
Income Tax Regulations);

 

2.                                       The
Seller’s U.S. employer identification number is                ;
and

 

3.                                       The
Seller’s office address is 3350 Riverwood Parkway, Suite 1500, Atlanta,
Georgia 30339.

 

The undersigned understands that this Certification may be disclosed to
the Internal Revenue Service by transferee and that any false statement
contained herein could be punished by fine, imprisonment, or both.

 

This Certificate is made with the knowledge that KRG Development, LLC,
an Indiana limited liability company, will rely upon this Certificate in
purchasing that certain real property from Seller more particularly described
on Exhibit A attached hereto.

 

Under penalties of perjury I declare that I have examined this
Certification and to the best of my knowledge and belief, it is true, correct
and complete, and I further declare that I have authority to sign this document
on behalf of the Seller.

 

	
  Date:
                  ,
  200  

  	
  U.S. Retail Income Fund
     , Limited

  Partnership, a Delaware limited partnership

  
	
   

  	
   

  
	
   

  	
  By: BVT Institutional
  Investments, Inc., a

  Georgia corporation, its general partner

  
	
   

  	
   

  
	
   

  	
  By:  BVT Institutional Investments, Inc., a
  Georgia

  corporation, its general partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

1

 

THIS CERTIFICATION MUST BE RETAINED UNTIL THE END OF THE FIFTH TAXABLE
YEAR FOLLOWING THE TAXABLE YEAR IN WHICH THE TRANSFER TAKES PLACE.

 

2

 

SCHEDULE 10

 

FORM OF
PURCHASER’S CERTIFICATE

(AS TO
PURCHASER’S REPRESENTATIONS AND WARRANTIES)

 

PURCHASER’S
CERTIFICATE AS TO REPRESENTATIONS

 

THIS PURCHASER’S CERTIFICATE AS TO REPRESENTATIONS
(this “Certificate”)
is given and made by KRG Capital, LLC, an Indiana limited liability company (“Purchaser”), this     day of               ,
200  , for the benefit of U.S. Retail Income Fund IV, Limited
Partnership a Delaware limited partnership (“Seller”).

 

Pursuant to the provisions of that certain Purchase and Sale Agreement,
dated as of            ,
2005, between Seller and Purchaser (the “Contract”),
for the purchase and sale of certain real property commonly known as Indian
River Square Shopping Center (the “Property”),
Purchaser certifies that except as may be set forth to the contrary in EXHIBIT “B” attached hereto and made a part hereof, all
of the representations and warranties of Purchaser contained in the Contract
remain true and correct in all material respects as of the date hereof; and

 

The representations and warranties contained herein shall survive for a
period of one (1) year after the date hereof, and upon the expiration
thereof shall be of no further force or effect except to the extent that with
respect to any particular alleged breach, Seller shall give Purchaser written
notice prior to the expiration of said one (1) year period of such alleged
breach with reasonable detail as to the nature of such breach and files an
action against Purchaser with respect thereto within ninety (90) days after the
giving of such notice.

 

IN WITNESS WHEREOF, Purchaser has caused this Certificate to be
executed by its duly authorized representative as of the day and year first
above written.

 

	
   

  	
  “PURCHASER”

  
	
   

  	
   

  
	
   

  	
  KRG DEVELOPMENT, LLC,
  an Indiana limited liability company

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (CORPORATE SEAL)

  
						

 

1

 

EXHIBIT “A”

 

LEGAL
DESCRIPTION

 

2

 

EXHIBIT “B”

 

EXCEPTIONS
TO REPRESENTATIONS AND WARRANTIES

 

3

 

SCHEDULE 11

 

FORM OF
SELLER’S ESTOPPEL

AS TO
TENANTS)

 

LANDLORD
ESTOPPEL CERTIFCATE

 

                ,
200  

 

 

KRG Development, LLC

30 S. Meridian, Suite 1100

Indianapolis,
Indiana  46204

 

	
  RE:

  	
   

  	
  Lease:

  	
  Lease dated
                 between
                           ,
  as original or successor landlord (“Landlord”), and

                                     (“Tenant”),
  as the same may have been amended by                         
  (the “Lease”)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Premises:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Commencement Date:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Expiration Date:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Current Monthly Base Rent:

  	
   

  	
  $               

  	
   

  
	
   

  	
   

  	
  Current Monthly Additional
  Rent:

  	
   

  	
  $               

  	
   

  
	
   

  	
   

  	
  Security Deposit:

  	
   

  	
  $               

  	
   

  
	
   

  	
   

  	
  Monthly Base Rent Paid Through:

  	
   

  	
                   ,
  200  

  
	
   

  	
   

  	
  Monthly Additional Rent Paid
  Through:

  	
   

  	
                   ,
  200  

  
								

 

Ladies and Gentlemen:

 

We are the Landlord under the lease described above, and this
certificate is given pursuant to Section 6.1(d) of that certain
Purchase and Sale Agreement (the “Agreement”) dated                ,
200  , between Landlord, as Seller, and you,
as Purchaser, with respect to                 .  We give you this certificate to permit you,
your successors or assigns and any mortgagee to rely on it as conclusive
evidence of the matters stated below, in completing the purchase by you or your
assignee, and a possible loan secured by,                ,
which includes the Premises.  We certify
to you and your successors and assigns and your mortgagee as follows:

 

1.                                       Except
as may be set forth on Exhibit “A” hereto, Tenant is in sole possession
of and is occupying the Premises.  Except
as may be set forth on Exhibit “A” hereto, Tenant has not subleased
all or any part of the Premises or assigned the Lease, or otherwise transferred
its interest in the Lease or the Premises.

 

1

 

2.                                       The
Lease is currently in effect and constitutes the entire agreement between
Landlord and Tenant.  The Lease has not
been amended, modified, or changed, whether in writing or orally, except as may
be stated in the Lease.

 

3.                                       To
Landlord’s knowledge, the Commencement Date and Expiration Date of the term of
the Lease are correctly stated above. 
Tenant has no options or rights and has not exercised any options or
rights to renew, extend, amend, modify, or change the term of the Lease, except
as may be stated in the Lease.

 

4.                                       The
current monthly Base Rent under the Lease and the current monthly Additional
Rent under the Lease are correctly stated above. Monthly Base Rent and monthly
Additional Rent have been paid through the respective dates stated above.  No rent has been prepaid for more than one
month.  Tenant has not been given any
free rent, partial rent, rebates, rent abatements, or rent concessions of any
kind, except as may be stated in the Lease.

 

5.                                       Tenant
has deposited the Security Deposit stated above with Landlord, and except as
may be set forth on Exhibit “B” hereto none of the Security Deposit
has been applied by Landlord to the payment of rent or any other amounts due
under the Lease.

 

6.                                       To
Landlord’s knowledge, any construction, build-out, improvements, alterations,
or additions to the Premises required under the Lease have been fully completed
in accordance with the plans and specifications described in the Lease.

 

7.                                       To
Landlord’s knowledge, Landlord has fully performed all of its obligations under
the Lease and is not in default under any term of the Lease.  In addition, to Landlord’s knowledge, no
circumstances exist under which Landlord may be deemed in default merely upon
service of notice or passage of time.

 

8.                                       Tenant
has not currently asserted to Landlord and, to Landlord’s knowledge, Tenant has
no defenses, set-offs, or counterclaims to the payment of rent and all other
amounts due from Tenant to Landlord under the Lease.

 

9.                                       Tenant
has not been granted and has not exercised any options or rights of expansion,
purchase, or first refusal concerning the Lease or the Premises, except as may
be stated in the Lease.

 

10.                                 To
Landlord’s knowledge, Tenant has not filed and is not the subject of any filing
for bankruptcy or reorganization under federal bankruptcy laws.

 

All references herein to the “knowledge of Seller” or “to Seller’s
knowledge” shall have the same meaning and shall be subject to the same
qualifications as set forth in Section 4.2 of the Agreement.

 

This certificate shall terminate and be of no further force and effect,
and Seller shall have no further liability hereunder, upon the receipt by you
or your successors and assigns of a duly executed Tenant Estoppel Certificate
from the Tenant under the Lease with respect to the matters herein contained,
all as set forth in Section 6.1(d) of the Agreement.

 

 

	
  Sincerely,

  
	
   

  
	
  U.S. Retail Income Fund
       , Limited Partnership

  a Delaware limited partnership

  
	
   

  
	
   

  
	
  By: BVT Institutional
  Investments, Inc., a Georgia corporation, its general partner

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  
	
  Its:

  	
   

  	
   

  

 

 

EXHIBIT “A”

 

1.                                      Description
of Subleases and/or Assignments of Tenant’s Interest (if none, then state none)

 

 

2.                                       Amounts
of the Security Deposit Which Have Been Applied by Landlord (if none, then
state none)

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