Document:

Exhibit

Exhibit 10.1

 Vectren Corporation At-Risk Compensation Plan

Effective May 1, 2001

(As Amended and Restated as of May 1, 2006)

(As Amended and Restated as of May 1, 2011)

(As Amended and Restated as of May 24, 2016)

Exhibit 10.1

TABLE OF CONTENTS
	
				
	 
	 
	 
	Page

	ARTICLE I
	PURPOSE
	 

	 
	 
	 
	 

	 
	1.1
	Purpose
	C-1

	 
	1.2
	Amendment and Restatement Effect
	C-1

	 
	 
	 

	ARTICLE II
	DEFINITIONS
	 

	 
	 
	 
	 

	 
	2.1
	“Agreement”
	C-2

	 
	2.2
	“Annual Incentive Award”
	C-2

	 
	2.3
	“Award”
	C-2

	 
	2.4
	“Award Date” or Grant Date”
	C-2

	 
	2.5
	“Board” or “Board of Directors”
	C-2

	 
	2.6
	“Cashless Exercise”
	C-2

	 
	2.7
	“Cause”
	C-2

	 
	2.8
	“Change in Control”
	C-2

	 
	2.9
	“Code”
	C-2

	 
	2.10
	“Committee”
	C-2

	 
	2.11
	“Common Stock”
	C-2

	 
	2.12
	“Company”
	C-2

	 
	2.13
	“Covered Participant”
	C-2

	 
	2.14
	“Designated Beneficiary”
	C-2

	 
	2.15
	“Disability”
	C-2

	 
	2.16
	“Effective Date”
	C-2

	 
	2.17
	“Eligible Employee”
	C-3

	 
	2.18
	“Employee”
	C-3

	 
	2.19
	“Exchange Act”
	C-3

	 
	2.20
	“Fair Market Value”
	C-3

	 
	2.21
	“Good Reason”
	C-3

	 
	2.22
	“Incentive Stock Option”
	C-3

	 
	2.23
	“Nonqualified Stock Option”
	C-3

	 
	2.24
	“Option Price”
	C-3

	 
	2.25
	“Outside Director”
	C-3

	 
	2.26
	“Participant”
	C-3

	 
	2.27
	“Participating Company”
	C-3

	 
	2.28
	“Performance Award”
	C-3

	 
	2.29
	“Performance Criteria”
	C-3

	 
	2.30
	“Performance Period”
	C-4

	 
	2.31
	“Performance Share”
	C-4

	 
	2.32
	“Performance Unit”
	C-4

	 
	2.33
	“Person”
	C-4

	 
	2.34
	“Plan”
	C-4

	 
	2.35
	“Restricted Stock”
	C-4

	 
	2.36
	“Restriction Period”
	C-4

	 
	2.37
	“Retirement”
	C-4

	 
	2.38
	“Rule 16b-3”
	C-4

	 
	2.39
	“Section 162(m)”
	C-4

	 
	2.40
	“Section 409A”
	C-4

	 
	2.41
	“Securities Act”
	C-4

	 
	2.42
	“Stock” or “Shares”
	C-4

	 
	2.43
	“Stock Appreciation Right”
	C-4

	 
	2.44
	“Stock Option” or “Option”
	C-4

Exhibit 10.1

	
				
	 
	2.45
	“Stock Unit Award”
	C-4

	 
	2.46
	“Subsidiary”
	C-4

	 
	 
	 
	 

	ARTICLE III
	ELIGIBILITY
	 

	 
	 
	 
	 

	 
	3.1
	Eligibility
	C-5

	 
	 
	 
	 

	ARTICLE IV
	SHARES SUBJECT TO THE PLAN
	 

	 
	 
	 
	 

	 
	4.1
	Number of Shares
	C-6

	 
	4.2
	Lapsed Awards or Forfeited Shares
	C-6

	 
	4.3
	No Repricing or Replacement Without Shareholder Approval
	C-6

	 
	4.4
	Capital Adjustments
	C-6

	 
	 
	 
	 

	ARTICLE V
	STOCK OPTIONS
	 

	 
	 
	 
	 

	 
	5.1
	Grant of Stock Options
	C-7

	 
	5.2
	Option Price
	C-7

	 
	5.3
	Exercisability
	C-7

	 
	5.4
	Method of Exercise
	C-7

	 
	5.5
	Death, Disability or Other Termination of Employment
	C-7

	 
	 
	 
	 

	ARTICLE VI
	RESTRICTED STOCK
	 

	 
	 
	 
	 

	 
	6.1
	Grant of Restricted Stock
	C-8

	 
	6.2
	Restricted Stock Award Agreement
	C-8

	 
	6.3
	Restriction Period
	C-8

	 
	6.4
	Removal of Restrictions and Deferral of Payment
	C-8

	 
	6.5
	Voting Rights
	C-8

	 
	6.6
	Dividends and Other Distributions
	C-8

	 
	6.7
	Death, Disability or Retirement
	C-8, 9

	 
	 
	 
	 

	ARTICLE VII
	OTHER STOCK BASED AWARDS
	 

	 
	 
	 
	 

	 
	7.1
	Grant of Other Stock Based Awards
	C-10

	 
	7.2
	Stock Appreciation Rights
	C-10

	 
	7.3
	Performance Awards
	C-10

	 
	7.4
	Stock Unit Awards
	C-11

	 
	7.5
	Death, Disability, Retirement or Other Termination of Employment
	C-11

	 
	7.6
	Deferral of Payment
	C-11

	 
	 
	 
	 

	ARTICLE VIII
	ANNUAL INCENTIVE AWARDS
	 

	 
	 
	 
	 

	 
	8.1
	Timing and Determination of Annual Incentive Awards
	C-12

	 
	8.2
	Performance Criteria for Annual Incentive Awards
	C-12

	 
	8.3
	Maximum Annual Incentive Award
	C-12

	 
	8.4
	Short Performance Year
	C-12

	 
	8.5
	Limitation on Right to Payment of Award
	C-12

	 
	 
	 
	 

	ARTICLE IX
	SPECIAL PROVISIONS APPLICABLE TO COVERED PARTICIPANTS AND NON-EMPLOYEE DIRECTORS
	 

	 
	 
	 
	 

	 
	9.1
	Special Provision Applicable to Covered Participants
	C-13

Exhibit 10.1

	
				
	 
	9.2
	Special Provision Applicable to Non-Employee Directors
	C-14

	 
	 
	 
	 

	ARTICLE X
	CHANGE IN CONTROL
	 

	 
	 
	 
	 

	 
	10.1
	Change in Control Agreements
	C-15

	 
	10.2
	Change in Control Defined
	C-15,16

	 
	10.3
	Good Reason Defined
	C-17

	 
	10.4
	Cause Defined
	C-17,18

	 
	 
	 
	 

	ARTICLE XI
	ADMINISTRATION
	 

	 
	 
	 
	 

	 
	11.1
	The Committee
	C-19

	 
	11.2
	Committee Decisions
	C-19

	 
	11.3
	Rule 16b-3, Section 409A and Section 162(m) Requirements
	C-19

	 
	11.4
	Recoupment
	C-19

	 
	 
	 
	 

	ARTICLE XII
	GENERAL PROVISIONS
	 

	 
	 
	 
	 

	 
	12.1
	Withholding
	C-20

	 
	12.2
	Terms of Awards
	C-20

	 
	12.3
	Nontransferability
	C-20

	 
	12.4
	No Right to Employment
	C-20

	 
	12.5
	Rights as Shareholder
	C-20

	 
	12.6
	Construction of the Plan
	C-20

	 
	12.7
	Amendment of Plan
	C-20

	 
	12.8
	Amendment of Award
	C-20

	 
	12.9
	Exemption from Computation of Compensation for Other Purposes
	C-20

	 
	12.10
	Legend
	C-21

	 
	12.11
	Special Provisions for Certain Participants
	C-21

	 
	12.12
	Unfunded Plan
	C-21

	 
	12.13
	Conflict with Employment Agreement
	C-21

	 
	12.14
	Gender and Number
	C-21

	 
	12.15
	Severability
	C-21

	 
	12.16
	Effect of Headings
	C-21

	 
	12.17
	Payment
	C-21

	 
	12.18
	No Liability
	C-21, 22

Exhibit 10.1

ARTICLE I

PURPOSE

		
	1.1
	Purpose.   Vectren Corporation, an Indiana corporation, hereby establishes the Vectren Corporation At-Risk Compensation Plan, as amended and restated, to promote the interests of the Company and its shareholders through (a) the attraction and retention of Participants essential to the success of the Company; (b) the motivation of Participants using performance-related incentives linked to performance goals and the interests of Company shareholders; and (c) enabling such individuals to share in the growth and success of the Company and its Subsidiaries. The Plan permits cash awards, the grant of Stock Options, Restricted Stock, and, any other stock-based forms of awards as the Committee, in its sole and complete discretion, may determine to be appropriate in carrying out the intent and purposes of this Plan. The Plan also provides for the grant of annual incentive awards.

		
	1.2
	Amendment and Restatement Effect.  This Vectren Corporation At-Risk Compensation Plan, as amended and restated as of May 1, 2016, shall apply to all Awards granted on or after May 1, 2016. The Vectren Corporation At-Risk Compensation Plan, as amended and restated as of May 1, 2011, shall apply to all Awards granted on or after May 1, 2011 and prior to May 1, 2016, the Vectren Corporation At-Risk Compensation Plan, as amended and restated as of May 1, 2006, shall apply to all Awards granted on or after May 1, 2006 and prior to May 1, 2011, and the Vectren At-Risk Compensation Plan effective May 1, 2001 shall apply to all awards granted on or after May 1, 2001 and prior to May 1, 2006.

C-1

Exhibit 10.1

ARTICLE II

DEFINITIONS

2.1   “Agreement” shall mean a written agreement between the Company and a Participant implementing the grant, and setting forth the particular terms, conditions and restrictions of each Award. With respect to the grant of a Stock Option, the Agreement may be referred to herein as an “Option Agreement,” and with respect to any other Award hereunder, the Agreement may be referred to herein as an “Award Agreement.”

2.2   “Annual Incentive Award” shall mean a cash bonus payable to a Participant under Article VIII.

2.3   “Award” shall mean an award or grant made to a Participant under Article V, VI, or VII, or an Annual Incentive Award under Article VIII.

2.4   “Award Date” or “Grant Date” shall mean the date on which an Award is made by the Committee under the Plan.

2.5   “Board” or “Board of Directors” shall mean the Board of Directors of the Company.

2.6   “Cashless Exercise” shall mean the exercise of an Option by the Participant through the use of a brokerage firm to make payment to the Company of the exercise price from the proceeds of the sale of Stock issued pursuant to the exercise of the Option, and upon receipt of such payment, the Company delivers the exercised Shares to the brokerage firm.

2.7   “Cause” shall be defined in Section 10.4.

2.8   “Change in Control” shall be defined in Section 10.2.

2.9   “Code” shall mean the Internal Revenue Code of 1986 and the rules and regulations promulgated thereunder, or any successor law, as amended from time to time.

2.10 “Committee” shall mean the Compensation and Benefits Committee of the Board or such other committee appointed by the Board to administer the Plan in accordance with Article XI; provided, however, if any member of the Committee does not qualify as both an outside director for purposes of Section 162(m) and a non-employee director for purposes of Rule 16b-3 the remaining members of the Committee who do so qualify (but not less than two members) shall be constituted as a subcommittee of the Committee to act as the Committee for purposes of this Plan.

2.11 “Common Stock” shall mean the Common Stock of the Company without par value, or such other security or right or instrument into which such Common Stock may be changed or converted in the future.

		
	2.12
	“Company” shall mean Vectren Corporation, an Indiana corporation, or any successor thereto.

2.13 “Covered Participant” shall mean a Participant who is a “covered employee” as defined in Section 162(m)(3) and the regulations promulgated thereunder.

2.14 “Designated Beneficiary” shall mean the beneficiary designated by the Participant, pursuant to procedures established by the Committee, to receive amounts due to the Participant in the event of the Participant’s death. If the Participant does not make an effective designation, then the Designated Beneficiary will be deemed to be the Participant’s estate.

2.15 “Disability” shall mean (a) the mental or physical disability of the Participant defined as “Disability” under the terms of the long-term disability plan sponsored by the Company and in which the Participant is covered, as amended from time to time in accordance with the provisions of such plan; or (b) a determination by the Committee, in its sole discretion, of total disability (based on medical evidence) that precludes the Participant from engaging in any occupation or employment for wage or profit for at least twelve months and appears to be permanent. All decisions by the Committee relating to a Participant’s Disability (including a decision that a Participant is not disabled), shall be final and binding on all parties.

2.16 “Effective Date” shall mean:

		
	 (a)
	January 1, 2001 with respect to Annual Incentive Awards granted pursuant to Article VIII; and

		
	 (b)
	May 1, 2001 with respect to long-term incentive Awards granted pursuant to Articles V, VI or VII.

C-2

Exhibit 10.1

2.17 “Eligible Employee” shall mean an Employee who is an officer or other key employee of a Participating Company as designated by the Committee to be eligible to participate in the Plan.

2.18 “Employee” shall mean an individual who is employed by a Participating Company in a customary employer-employee relationship and designated as such in accordance with the Participating Company’s standard employment practices.

2.19 “Exchange Act” shall mean the Securities Exchange Act of 1934 and the rules and regulations promulgated thereunder, or any successor law as amended from time to time.

2.20 “Fair Market Value” shall mean, on any given date, the closing price of Common Stock as reported on the composite tape of the primary stock exchange in which the Common Stock is listed on such day or, if no Shares were traded on such stock exchange on such day, then on the next preceding day that Stock was traded on such exchange, all as reported by The Wall Street Journal or such other source as the Committee may select; provided, however, the Committee may at its discretion and in good faith make such determination on an alternate date or use an average of prices as long as such meets the definition of fair market value under Section 409A and Section 422 of the Code with respect to Options and otherwise in accordance with applicable law.

2.21 “Good Reason” shall be defined in Section 10.3.

2.22 “Incentive Stock Option” shall mean an option to purchase Stock, granted under Article V herein, which is designated as an incentive stock option and is intended to meet the requirements of Code Section 422 and the regulations promulgated thereunder.

2.23 “Nonqualified Stock Option” shall mean an option to purchase Stock, granted under Article V herein, which is not intended to qualify as an Incentive Stock Option.

2.24 “Option Price” shall mean the exercise price per share of Stock covered by an Option in accordance with Section 5.2.

2.25 “Outside Director” shall mean a member of the Board who is not an Employee.

2.26 “Participant”  shall mean an Eligible Employee or Outside Director who has been selected from time to time under Article III to receive an Award under the Plan.

2.27 “Participating Company” shall mean the Company, and such Subsidiaries as the Board authorizes to participate herein.

2.28 “Performance Award” shall mean a performance-based Award made under Section 7.3, which may be in the form of either Performance Shares or Performance Units.

2.29 “Performance Criteria” shall mean the following performance criteria used by the Committee to establish performance goals for a Performance Period for the purpose of determining when an Award subject to such performance goals has been earned, including, but not limited to, the following: operating performance targets and goals; maintenance performance targets and goals; operating efficiency; economic efficiency; energy efficiency; service reliability goals and targets; productivity goals and targets; customer satisfaction; customer service; response time; safety; environmental goals and targets; conservation goals and targets; regulatory compliance; total customers; customer acquisition; customer retention; and financial goals including, but not limited to, total shareholder return, return on equity, debt to equity ratio, investment performance, revenue, sales, net income, operating income (with or without investment income or income taxes), expense reduction or control, cash flow, margin, earnings before any or all of interest, taxes, depreciation and amortization, return on assets, return on capital, return on investment, internal rate of return, earnings per share and/or growth thereof, share price, capital, equity and net worth.  Performance Criteria may include alternative and multiple performance goals, may be alone or in any combination, may be based on individual performance, may be measured on an absolute basis, relative to a pre-established target, relative to prior performance or in relation to a designated comparison group, may be adjusted for abnormal weather, based on National Oceanic and Atmospheric Administration measures or such other objective measures and may be of the Company as a whole or any of its Subsidiaries, divisions, business units or other areas of the Company or its Subsidiaries. The foregoing Performance Criteria shall have any reasonable definitions that the Committee may specify, which may include or exclude any or all of the following items as the Committee may specify: extraordinary, unusual or non-recurring items; effects of accounting changes; effects of financing activities; effects of debt repayment or refinancing; expenses for restructuring or productivity initiatives; other non-operating items; spending for acquisitions; effects of acquisitions; effects of dispositions; effects of divestitures; and effects of litigation activities and settlements. Any such performance criterion or combination of such criteria may apply to the Participant’s Award opportunity in its entirety or to any designated portion or portions of the Award opportunity, as the Committee may specify.

C-3

Exhibit 10.1

2.30 “Performance Period” shall mean the time period designated by the Committee during which performance goals based on Performance Criteria must be met in order for a Participant to obtain a performance-based Award.

2.31 “Performance Share” shall mean an Award, designated as a Performance Share, granted to a Participant pursuant to Section 7.3, the value of which may be linked to Stock and which may be determined, in whole or in part, by the attainment of pre-established performance goals based on Performance Criteria as deemed appropriate by the Committee and described in the Agreement.

2.32 “Performance Unit” shall mean an Award, designated as a Performance Unit, granted to a Participant pursuant to Section 7.3, the value of which may be determined, in whole or in part, by the attainment of pre-established performance goals based on Performance Criteria and which may be linked to the performance of Stock as deemed appropriate by the Committee and described in the Agreement.

2.33 “Person” shall have the meaning ascribed to such term in Section 10.2(a)(i).

2.34 “Plan” shall mean the Vectren Corporation At-Risk Compensation Plan, as amended and restated, as herein established and as hereafter amended from time to time.

2.35 “Restricted Stock” shall mean an Award of Stock granted to a Participant pursuant to Article VI herein.

2.36 “Restriction Period” shall mean the period during which the transfer of Shares of Restricted Stock is restricted and is subject to a risk of forfeiture, pursuant to Article VI.

2.37 “Retirement” shall mean the termination of employment for a Participant who is at least 65 years of age or at least 55 years of age and credited with 10 years of service. With respect to a Participant who is an Outside Director, “Retirement” shall mean the end of the director’s term of office upon attaining the mandatory retirement age for directors.

2.38 “Rule 16b-3” shall mean Rule 16b-3 under Section 16(b) of the Exchange Act as adopted in Exchange Act Release No. 34-37260 (May 30, 1996), or any successor rule as amended from time to time.

2.39 “Section 162(m)” shall mean Section 162(m) of the Code, or any successor section under the Code, as amended from time to time and as interpreted by regulations promulgated thereunder from time to time.

2.40 “Section 409A” shall mean Section 409A of the Code, or any successor section under the Code, as amended from time to time and as interpreted by regulations promulgated thereunder from time to time.

2.41 “Securities Act” shall mean the Securities Act of 1933 and the rules and regulations promulgated thereunder, or any successor law, as amended from time to time.

2.42 “Stock” or “Shares” shall mean the shares of Common Stock of the Company.

2.43 “Stock Appreciation Right” shall mean the right to receive an amount equal to the excess of the Fair Market Value of a share of Stock (as determined on the date of exercise) over the Option Price of a related Option or the Fair Market Value of the Stock on the Grant Date of the Stock Appreciation Right.

2.44 “Stock Option” or “Option” shall mean an Incentive Stock Option or a Nonqualified Stock Option.

2.45 “Stock Unit Award” shall mean an Award, designated as a Stock Unit Award, granted to a Participant pursuant to Section 7.4, the value of which may be determined, in whole or in part, by the attainment of pre-established performance goals based on Performance Criteria and which may be linked to the performance of Stock as deemed appropriate by the Committee and described in the Agreement.

2.46 “Subsidiary”  shall mean any entity (other than Vectren Corporation) with respect to which Vectren Corporation owns, either directly or indirectly, at least 50% of the total combined voting power of all classes of stock or other ownership interest.

C-4

Exhibit 10.1

ARTICLE III

ELIGIBILITY

		
	3.1
	Eligibility.   The Committee shall have sole and complete discretion in determining the Eligible Employees and Outside Directors who shall be eligible to participate in the Plan. An Outside Director who is selected by the Committee to participate in the Plan shall only be eligible for Awards under Articles V (other than Incentive Stock Options), VI or VII and shall not be eligible for Annual Incentive Awards under Article VIII. An Eligible Employee or Outside Director of the Company designated by the Committee as eligible hereunder shall be considered a Participant upon receiving an Award under the Plan or is otherwise designated as a Participant by the Committee.

C-5

Exhibit 10.1

ARTICLE IV

SHARES SUBJECT TO THE PLAN

		
	4.1
	Number of Shares.    Subject to adjustment as provided for in Section 4.4 below, the maximum aggregate number of Shares that may be issued pursuant to Awards made under the Plan (including those that may be issued through the exercise of Incentive Stock Options) shall not exceed 6,350,000 Shares, which shall be in a combination of Stock Options, Restricted Stock, and, at the discretion of the Committee, other Awards as described in this Plan.  This reflects a voluntary reduction of 300,000 Shares from the original 6,650,000 Shares approved at the time of the Plan’s original effective date of May 1, 2001.

Shares of Common Stock may be available from the authorized but unissued Shares, Shares issued and reacquired by the Company or Shares purchased in the open market for purposes of the Plan. Except as provided in Sections 4.2 and 4.4 herein, the issuance of Shares in connection with the exercise of, or as other payment for, Awards under the Plan shall reduce the number of Shares available for future Awards under the Plan.

		
	4.2
	Lapsed Awards or Forfeited Shares.  In the event that:

(a)  Any Option or other Award granted under the Plan terminates, expires, or lapses for any reason without having been exercised or paid in accordance with its terms and without the delivery of Shares,

(b)  Restricted Stock issued pursuant to the Awards are canceled or forfeited for any reason, or

(c)  Awards are paid in cash and without the delivery of Shares,

		
	    
	the Shares subject to such Award shall thereafter be again available for grant of an Award under the Plan.

Notwithstanding the foregoing, in no event shall shares tendered or withheld in payment of the exercise price of an Award or to satisfy tax withholding liabilities arising from the exercise or settlement of any Award be recredited to the Plan reserve.  In addition, upon stock settlement of Stock Appreciation Rights, the gross number of Stock Appreciation Rights originally granted shall be counted as issued for purposes of determining the maximum plan shares, regardless of the number of Stock Appreciation Rights actually issued upon such stock settlement.

		
	4.3
	No Repricing or Replacement Without Shareholder Approval.  Except as described in Section 4.4 or Article X of the Plan, the terms of outstanding Awards may not be amended to reduce the exercise price of outstanding Options or Stock Appreciation Rights, and outstanding Options or Stock Appreciation Rights may not be canceled, exchanged, bought-out, replaced or surrendered in exchange for cash, other Awards or Options or Stock Appreciation Rights with an exercise price that is less than the exercise price of the original Options or Stock Appreciation Rights without shareholder approval.  This Section 4.3 is intended to prohibit the repricing of “underwater” Options and Stock Appreciation Rights without shareholder approval and will not be construed to prohibit the adjustments provided for in Section 4.4 or Article X of the Plan.  Notwithstanding any provision of the Plan to the contrary, this Section 4.3 may not be amended without shareholder approval.

		
	4.4
	Capital Adjustments.    In the event of a reorganization, recapitalization, stock split, stock dividend, combination of shares, merger, consolidation, rights offering, or any other change in the corporate structure, capitalization or Shares of the Company, the Committee shall make such adjustments as are appropriate in the maximum number and kind of Shares that may be issued under the Plan and to any Participant, in the number and kind of Shares covered by any Awards granted before such change and in the Option Price of any Option granted before such change or in the Fair Market Value of the Shares on the Grant Date of any Stock Appreciation Right granted before such change. Such adjustments shall be intended to put the Participant in the same position as he or she was in immediately before such event.

C-6

Exhibit 10.1

ARTICLE V

STOCK OPTIONS

		
	5.1
	Grant of Stock Options.    Subject to the limitation set forth in Section 4.1 and the other terms and provisions of the Plan and applicable law, the Committee, at any time and from time to time, may grant Stock Options to Participants as it shall determine. The Committee shall have sole and complete discretion in determining the type of Option granted, the Option Price, the duration of the Option, the number of Shares to which an Option pertains, any conditions imposed upon the exercisability or the transferability of the Options, including vesting conditions, the conditions under which the Option may be terminated, and any such other provisions as may be warranted to comply with the law or rules of any securities trading system or stock exchange. Each Option grant shall have such specified terms and conditions detailed in an Option Agreement. The Option Agreement shall specify whether the Option is intended to be an Incentive Stock Option or a Nonqualified Stock Option. However, no Incentive Stock Option may be awarded (a) after the tenth anniversary of the date this Plan, as amended and restated, is adopted by the Board or last approved by the shareholders of the Company, whichever is earlier, or (b) to a Participant who is not an Employee.

		
	5.2
	Option Price.    The exercise price per share of Stock covered by an Option shall be determined on the Grant Date by the Committee; provided that the Option Price shall not be less than 100% of the Fair Market Value of the Stock on the Grant Date. Further provided, in the case of an Incentive Stock Option granted to any Employee who owns more than 10% of the total combined voting power of all classes of stock of the Company or a Subsidiary, the Option Price shall not be less than 110% of the Fair Market Value of the Common Stock on the Grant Date.

		
	5.3
	Exercisability.    Except as otherwise provided herein, Options granted under the Plan shall be exercisable at such times and be subject to such restrictions and conditions as the Committee shall determine, which will be specified in the Option Agreement and need not be the same for each Participant. However, under no circumstances, may an Option be exercisable after the expiration of 10 years from the Grant Date (5 years from the Grant Date for any Incentive Stock Option for any Employee who owns more than 10% of the total combined voting power of all classes of stock of the Company or a Subsidiary).

		
	5.4
	Method of Exercise.    Options shall be exercised by the delivery of a notice from the Participant to the Company in a form prescribed by the Committee setting forth the number of Shares with respect to which the Option is to be exercised, accompanied by full payment for the Shares. The Option Price shall be payable to the Company in full in cash, or its equivalent, by delivery of Shares of Stock (not subject to any security interest or pledge) or by delivery of Options, having a Fair Market Value at the time of exercise equal to the exercise price of the Shares, or by a combination of the foregoing. In addition, at the request of the Participant, and subject to applicable laws and regulations, the Company may (but shall not be required to) cooperate in a Cashless Exercise of the Option. After receipt of written notice and full payment of the Option Price, the Company shall deliver to the Participant as soon as practicable or at a later date mutually agreed to with a Participant, Shares of Stock, evidencing the number of Shares with respect to which the Option was exercised issued in the Participant’s name. The Participant may not defer, beyond the date of exercise, recognition of income resulting from the exercise of a Nonqualified Stock Option.

		
	5.5
	Death, Disability or Other Termination of Employment.    Except as otherwise provided in a Participant’s Option Agreement:

		
	(a)
	in the event of a Participant’s death or Disability, Options granted to the Participant shall be considered immediately vested and shall be exercisable at such time as specified in the Option Agreement, and

		
	(b)
	subject to Article X, in the event the Participant resigns, is terminated from the Company or, in the case of an Outside Director, is not reelected to the Board or otherwise resigns as a member of the Board, Options which have not vested by such date shall be forfeited, and the Participant shall have three months from such date to exercise vested Incentive Stock Options and one year to exercise Nonqualified Stock Options (but not beyond the expiration of the term of the Option, if earlier). Notwithstanding the foregoing, if the Participant is terminated from the Company for Cause, the Participant shall be required to exercise any vested Options immediately, and any vested Options not immediately exercised shall lapse.

C-7

Exhibit 10.1

ARTICLE VI

RESTRICTED STOCK

		
	6.1
	Grant of Restricted Stock.    Subject to the limitations set forth in Section 4.1 and the other terms and provisions of the Plan and applicable law, the Committee, at any time and from time to time, may grant shares of Restricted Stock under the Plan to such Participants, and in such amounts and for such duration and/or consideration as it shall determine.

		
	6.2
	Restricted Stock Award Agreement.    Each Restricted Stock granted hereunder shall be evidenced by an Award Agreement that shall specify the Restriction Period, the conditions which must be satisfied prior to removal of the restriction, the forfeiture of such Shares in the event such conditions are not satisfied, the number of Shares of Restricted Stock granted, and such other provisions as the Committee shall determine. The Committee may specify, but is not limited to, the following types of conditions in the Award Agreement: (a) conditions for acceleration or achievement of the end of the Performance Period based on any Performance Criteria or the end of the Restriction Period and (b) any other conditions or restrictions which the Committee may deem advisable, including requirements established pursuant to the Securities Act, the Exchange Act, the Code and any securities trading system or stock exchange upon which such Shares under the Plan are listed.

		
	    
	Notwithstanding the foregoing, the Committee shall have the authority to grant additional unrestricted Stock to a Participant hereunder, provided Performance Criteria are satisfied for the Performance Period.

		
	6.3
	Restriction Period.    Except as otherwise provided in this Article, the Shares of Restricted Stock granted under the Plan may not be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated until the termination of the applicable Restriction Period or upon earlier satisfaction of other conditions as specified by the Committee in its sole discretion and set forth in the applicable Award Agreement.

		
	    
	Subject to Section 6.7 and Article X, if a Participant resigns, is otherwise terminated from the Company or, in the case of an Outside Director is not reelected to the Board or otherwise resigns as a member of the Board, prior to the end of the Restriction Period he or she will forfeit all interests in the Award. All rights with respect to the Restricted Stock granted to a Participant under the Plan shall be exercisable during his or her lifetime only by such Participant or his or her guardian or legal representative.

		
	6.4
	Removal of Restrictions and Deferral of Payment.    Except as otherwise provided in this Article, Restricted Stock covered by each Award made under the Plan shall become freely transferable by the Participant after the last day of the Restriction Period and/or upon the satisfaction of other conditions as determined by the Committee.

		
	    
	Furthermore, a Participant may defer the value of the Awards under the nonqualified deferred compensation plan sponsored by the Company if the Participant is eligible under such plan, if the deferral satisfies the requirements and restrictions imposed by Section 409A, and if such plan provides for deferral of Awards hereunder.

		
	6.5
	Voting Rights.    During the Restriction Period, Participants in whose name Restricted Stock is granted under the Plan may exercise full voting rights with respect to those shares.

		
	6.6
	Dividends and Other Distributions.    During the Restriction Period, Participants in whose name Restricted Stock is granted under the Plan shall be entitled to receive all dividends and other distributions paid with respect to those Shares (and if the Restricted Stock is performance based then the Committee shall accrue and pay such dividends at the end of the Performance Period based on the achievement of performance goals). If any such dividends or distributions are paid in Shares, the Shares shall be subject to the same restrictions on transferability and forfeitability as the Restricted Stock with respect to which they were distributed.

		
	6.7
	Death, Disability or Retirement.    Except as otherwise provided in a Participant’s Award Agreement, in the event of the Participant’s death, Disability, or Retirement the following shall apply:

		
	(a)
	If such event occurs after the end of the Performance Period but before the end of the Restriction Period, restrictions on all Shares shall be immediately removed;

		
	(b)
	In the event of the Participant’s Disability or Retirement before the Performance Period has ended, the restrictions on the shares awarded to the Participant shall be removed upon expiration of the Performance Period, and the number of Shares the Participant shall be entitled to, if any, shall equal (i) the number of Shares, if any, the Participant would otherwise be entitled to had the individual been an active Participant

C-8

Exhibit 10.1

at the end of the Performance Period (i.e., as adjusted or forfeited based on the
Performance Criteria) multiplied by (ii) the portion of Performance Period the Participant was an active Participant hereunder;

		
	(c)
	In the event an Outside Director resigns as of the end of the Outside Director’s then current term or fails to be reelected, then the restrictions on the shares awarded to the Outside Director shall be removed as of the end of such term, and the number of Shares the Outside Director shall be entitled to shall equal (i) the number of Shares, if any, the Outside Director would otherwise be entitled to had the Outside Director been an active Participant at the end of the term multiplied by (ii) the portion of the term the Outside Director was an active Participant; and

		
	(d)
	In the event of the Participant’s death before the Performance Period has ended, the restrictions on the shares awarded to the Participant shall be removed upon the Participant’s date of death, and the number of Shares the Participant shall be entitled to, if any, shall equal the number of Shares contingently granted to the Participant, without any further adjustment. 

C-9

Exhibit 10.1

ARTICLE VII

OTHER STOCK BASED AWARDS

		
	7.1
	Grant of Other Stock Based Awards.   Subject to the limitations set forth in Section 4.1 and the other terms and provisions of the Plan and applicable law, the Committee may, at any time and from time to time, issue to Participants, either alone or in addition to other Awards made under the Plan, Stock Appreciation Rights as described in Section 7.2, Performance Awards as described in Section 7.3, or other Stock Unit Awards as described in Section 7.4. Any such Awards shall be governed by the terms of an Agreement, and the Committee may impose such terms and conditions as it deems appropriate on such Award.

		
	7.2
	Stock Appreciation Rights.

		
	(a)
	Grant of Stock Appreciation Rights.    Stock Appreciation Rights granted alone, in tandem with an Option or in addition to an Option at the time of the Option or at a later time.

		
	(b)
	Price.    The exercise price of each Stock Appreciation Right shall be determined at the time of grant by the Committee, subject to the limitation that the exercise price shall not be less than 100% of Fair Market Value of the Common Stock on the Grant Date. No Stock Appreciation Right shall provide by its terms for the resetting of its exercise price or for its cancellation and reissuance, in whole or in part, or otherwise for directly or indirectly reducing the exercise price of an outstanding Stock Appreciation Right (except as permitted in Section 4.4); provided that the foregoing shall not limit the authority of the Committee to grant additional Stock Appreciation Rights hereunder.

		
	(c)
	Exercise.    Except as otherwise provided herein, Stock Appreciation Rights granted under the Plan shall be exercised at such times and be subject to such restrictions and conditions as the Committee shall determine, which shall be specified in the Agreement and need not be the same for each Participant.  However, under no circumstance may a Stock Appreciation Right be exercisable after expiration of 10 years from the Grant Date.  Stock Appreciation Rights shall be exercised by the delivery of a written notice from the Participant to the Company in a form prescribed by the Committee. Upon such exercise, the Participant shall be entitled to receive an amount equal to the excess of the Fair Market Value of a Share over the grant price thereof on the date of exercise of the Stock Appreciation Right multiplied by the number of Shares for which the Stock Appreciation Right was granted.

		
	(d)
	Payment.    Payment upon exercise of the Stock Appreciation Right shall be made in the form of cash, Shares of Common Stock, or a combination thereof, as determined in the sole and complete discretion of the Committee. However, if any payment in the form of Shares results in a fractional share, such payment for the fractional share shall be made in cash. The Participant may not defer, beyond the date of exercise, recognition of income resulting from the exercise of a Stock Appreciation Right.

		
	7.3
	Performance Awards.

		
	(a)
	Grant of Performance Awards.    Performance Awards granted hereunder may be issued in the form of either Performance Units or Performance Shares to Participants and may be subject to the Performance Criteria, Performance Period and other considerations or restrictions as it shall determine. The Committee shall have complete discretion in determining the number and value of Performance Units or Performance Shares granted to each Participant.

		
	(b)
	Value of Performance Awards.    The Committee shall determine the number and value of Performance Units or Performance Shares granted to each Participant as a Performance Award. The Committee shall set Performance Criteria in its discretion for each Participant who is granted a Performance Award. The extent to which such Performance Criteria are met will determine the value of the Performance Unit or Performance Share to the Participant.

		
	(c)
	Settlement of Performance Awards.    After a Performance Period has ended, the holder of a Performance Unit or Performance Share shall be entitled to receive the value thereof based on the satisfaction of the requirements established by the Committee and set forth in the Award Agreement.

		
	(d)
	Dividends and Divided Equivalents.    The Committee, in its sole and complete discretion, may determine that a Performance Award under this Section may provide to the Participant dividends or dividend equivalents (and if the Performance Award is performance based then the Committee shall accrue and pay such dividends

C-10

Exhibit 10.1

or dividend equivalents at the end of the Performance Period based on the achievement of performance goals).

		
	7.4
	Stock Unit Awards.

		
	(a)
	Grant of Other Stock Unit Awards.    Stock Unit Awards granted hereunder may be in the form of Common Stock or other securities or units of measure. The value of each such Award may be based, in whole or in part, on the Fair Market Value of the underlying Common Stock on the Grant Date. The Committee, in its sole and complete discretion, may determine that a Stock Unit Award under this Section may provide to the  Participant (i) dividends or dividend equivalents (and if the Stock Unit Award is performance based then the Committee shall accrue and pay such dividends or dividend equivalents at the end of the Performance Period based on the achievement of performance goals) and (ii) cash payments in satisfaction of an Award. Subject to the provisions of the Plan, the Committee, in its sole and complete discretion, shall determine the terms, restrictions, conditions, vesting requirements, and payment rules of the Stock Unit Award. The Award Agreement shall specify the rules of each Award as determined by the Committee. However, each Stock Unit Award need not be subject to identical rules.

		
	(b)
	Rules.    The Committee, in its sole and complete discretion, may grant a Stock Unit Award subject to the following rules:

		
	(i)
	Common Stock or other securities issued pursuant to Stock Unit Awards may not be sold, transferred, pledged, assigned or otherwise alienated or hypothecated by a Participant until the expiration of at least six months from the Grant Date, or where the Board or a Committee of the Board, comprised of non-Employee directors of the Company within the meaning of Rule 16b-3, approved the Award. To the extent Stock Unit Awards are deemed to be derivative securities within the meaning of Rule 16b-3, the rights of a Participant who is subject to Section 16 of the Exchange Act with respect to such Awards shall not vest or be exercisable until the expiration of at least six months from the Award Date or where the Board or a Committee, comprised of non-Employee directors of the Company within the meaning of Rule 16b-3, approved the Award. All rights with respect to such Stock Unit Awards granted to a Participant under the Plan shall be exercisable during his or her lifetime only by such Participant or his or her guardian or legal representative.

		
	(ii)
	Stock Unit Awards may require the payment of cash consideration by the Participant in receipt of the Award or provide that the Award, and any Common Stock or other securities issued in conjunction with the Award, be delivered without the payment of cash consideration.

		
	(iii)
	The Committee, in its sole and complete discretion, may establish certain Performance Criteria that may relate in whole or in part to receipt of Stock Unit Awards.

		
	(iv)
	Stock Unit Awards may be subject to vesting over a period specified by the Committee.

		
	(v)
	The Committee, in its sole and complete discretion, may waive or otherwise remove, in whole or in part, any restriction or condition imposed on a Stock Unit Award.

		
	7.5
	Death, Disability, Retirement or Other Termination of Employment.    Unless otherwise provided in a Participant’s Award Agreement, in the event of death, Disability, or Retirement similar rules as provided in Section 5.5 or 6.7 (as applicable) shall apply to an Award granted under this Article.

		
	7.6
	Deferral of Payment.    Notwithstanding the above, a Participant who is entitled to payment of an Award under this Article and who is eligible under the nonqualified deferred compensation plan sponsored by the Company may defer such payment to the extent provided under such plan providing the deferral satisfies the requirements and restrictions imposed by Section 409A. 

C-11

Exhibit 10.1

ARTICLE VIII

ANNUAL INCENTIVE AWARDS

		
	8.1
	Timing and Determination of Annual Incentive Awards.    Following the completion of a Performance Period, the Committee shall undertake or direct an evaluation of Performance Criteria for such Performance Period as determined in Section 8.2

		
	  
	No Annual Incentive Award may be paid without a certification by the Committee that the Performance Goals have been met.

		
	  
	Any Annual Incentive Awards will be paid as soon as practicable following the end of the Performance Period to which they relate.

		
	8.2
	Performance Criteria for Annual Incentive Awards.    Performance Criteria of the Company will be established in writing by the Committee before the beginning of each Performance Period or at such later time as may be permitted by Section 162(m) to maintain the status of Annual Incentive Awards as performance-based compensation.

		
	  
	The Performance Period with respect to Awards shall be the calendar year or any other period designated as such by the Committee.

		
	8.3
	Maximum Annual Incentive Award.    The maximum amount payable in respect of any individual Annual Incentive Award during any twelve calendar months for each Covered Participant shall not exceed $3,250,000, provided the Eligible Employee has been a Participant for such twelve month period. In the event that an Annual Incentive Award is being determined for a Performance Period of less than twelve calendar months or for the Performance Period in which the Covered Participant becomes a Participant, dies, or incurs a Disability, the maximum amount payable in respect of any Annual Incentive Award shall be prorated in accordance with Section 8.4 or 8.5, whichever is applicable.

		
	8.4
	Short Performance Year.

		
	(a)
	Death, Disability or Retirement.    In the event of a Participant’s death, Disability or Retirement prior to the date the Annual Incentive Award is paid the following shall apply:

		
	(i)
	In the event of the Participant’s death or Disability before the end of the Performance Period, the Company will be assumed to have achieved a target performance level for the Performance Period in which death or Disability occurs for purposes of determining the Annual Incentive Award. In the event of the Participant’s death or Disability after the end of the Performance Period, but before the date the Annual Incentive Award is paid, the Participant’s Annual Incentive Award shall be payable based on the actual Performance Criteria for the entire period.

		
	(ii)
	In the event of a Participant’s Retirement, the Participant’s Annual Incentive Award shall be determined and payable following the end of the Performance Period based on the actual Performance Criteria for the entire period.

		
	(iii)
	The amount of Annual Incentive Award shall be prorated as necessary to reflect the period of time during which the individual was employed in the Performance Period.

		
	(b)
	New Participants.    In the event an individual becomes a Participant and is eligible for an Annual Incentive Award during a Performance Period, such Annual Incentive Award shall be prorated to reflect the period of time the individual was employed in the Performance Period.

		
	8.5
	Limitation on Right to Payment of Award.    Subject to Section 8.4 and Article X, no Participant shall have a right to receive payment of an Annual Incentive Award under the Plan if, subsequent to the commencement of the Performance Period and prior to the date any Award would otherwise be payable, the Participant resigns or is otherwise terminated from the Participating Company. 

C-12

Exhibit 10.1

ARTICLE IX

SPECIAL PROVISIONS APPLICABLE TO COVERED PARTICIPANTS AND NON-EMPLOYEE DIRECTORS

		
	9.1
	Special Provision Applicable to Covered Participants.   To the extent the Committee determines, in its sole discretion, that an Award is to meet the requirements to be “qualified performance based compensation” under Section 162(m), then such Award to such Covered Participant shall be governed by the conditions of this Article IX in addition to the requirements of Articles V through VIII above. Should conditions set forth under this Article conflict with the requirements of Articles V through VIII, the conditions of this Article shall prevail.

		
	(a)
	All performance goals shall be based on Performance Criteria relating to Covered Participants for a relevant Performance Period and shall be established by the Committee (which for purposes of this Article IX shall be comprised solely of two or more outside directors, as defined in Section 162(m)) in writing prior to the beginning of the Performance Period, or by such other later date for the Performance Period as may be permitted under Section 162(m).

		
	(b)
	The performance goals based on the Performance Criteria must be objective and must satisfy third party “objectivity” standards under Section 162(m), and the regulations promulgated thereunder.

		
	(c)
	The Performance Criteria shall not allow for any discretion by the Committee as to an increase in any Award, but discretion to lower an Award is permissible.

		
	(d)
	The Award and payment of any Award under this Plan to a Covered Participant with respect to a relevant Performance Period shall be contingent upon the attainment of the performance goals (based on the Performance Criteria) that are applicable to such Award. The Committee shall certify in writing prior to payment of any such Award that such applicable performance goals have been satisfied. Resolutions adopted by, or minutes of, the Committee may be used for this purpose.

		
	(e)
	The aggregate maximum number of shares of Restricted Stock that may be granted to any Covered Participant under Article VI during any calendar year shall be 200,000.

		
	(f)
	In the event Performance Shares are awarded and the award is a right to receive shares, then the maximum number of shares represented by Performance Shares that may be granted to any Covered Participant under Section 7.3 during any calendar year shall be 200,000 shares.  In the event Performance Shares are awarded and the award is a right to receive payment in dollars, then the maximum amount payable in respect of Performance Shares under Section 7.3 to any Covered Participant during any calendar year shall not exceed $8.0 Million.

		
	(g)
	In the event Performance Units are awarded and the award is a right to receive shares, then the maximum number of shares represented by Performance Units that may be granted to any Covered Participant under Section 7.3 during any calendar year shall be 200,000 shares.  In the event Performance Units are awarded and the award is a right to receive payment in dollars, then the maximum amount payable in respect of Performance Units under Section 7.3 granted to a Covered Participant during any calendar year cannot exceed $8.0 Million.

		
	(h)
	In the event Stock Unit Awards are awarded and the award is a right to receive shares, then the maximum number of shares represented by Stock Unit Awards that may be granted to any Covered Participant  under Section 7.4 during any calendar year shall not exceed 200,000 shares.  In the event Stock Unit Awards are awarded and the award is a right to receive payment in dollars, then the maximum amount payable in respect of Stock Unit Awards under Section 7.4 granted to a Covered Participant during any calendar year shall not exceed $8.0 Million.

		
	(i)
	The aggregate maximum number of shares of Stock subject to Options under Article V and Stock Appreciation Rights under Section 7.2 granted to any Covered Participant during any calendar year shall be 750,000 shares.

		
	(j)
	Notwithstanding anything contained in this Plan to the contrary, the Company shall delay payment to any Participant if the Company reasonably anticipates that if the payment were made as scheduled, the Company’s deduction with respect to such payment would not be permitted due to the application of Section 162(m), provided that the payment is made either during the Company’s first taxable year in which the Company reasonably anticipates, or should reasonably anticipate, that if the payment is made during

C-13

Exhibit 10.1

such year, the deduction of such payment will not be barred by Section 162(m) or during the period beginning with the date of the Covered Participant’s separation from service and ending on the later of the last day of the taxable year of the Company in which the Covered Participant separates from service or the 15th day of the third month following the Covered Participant’s separation from service, and provided further that where any scheduled payment to the Covered Participant in the Company’s taxable year is delayed in accordance with this paragraph, the delay in payment will be treated as a subsequent deferral election unless all scheduled payments to that service provider that could be delayed in accordance with this paragraph are also delayed. The delayed payment shall be automatically transferred to the then applicable Vectren non-qualified deferred compensation plan. This section shall be interpreted and implemented in accordance with Section 409A and may be amended by the Committee in the Committee’s sole discretion to ensure such compliance.

		
	(k)
	All Awards under this Plan to Covered Participants or to other Participants who may become Covered Participants at a relevant future date shall be further subject to such other conditions, restrictions, and requirements as the Committee may determine to be necessary to carry out the purposes of this Article which is to avoid the loss of deductions by the Company under Section 162(m).

		
	 9.2
	Special Provision Applicable to Non-Employee Directors.   Notwithstanding anything herein to the contrary, with respect to Outside Directors, the maximum amount payable in respect of Awards to any Outside Director during any calendar year shall not exceed $500,000.

C-14

Exhibit 10.1

ARTICLE X

CHANGE IN CONTROL

		
	10.1
	Change in Control Agreements.    The provisions of this Section regarding the terms and conditions of an Award Agreement upon a Change in Control shall apply notwithstanding any Plan provision to the contrary, and notwithstanding any agreement between the Participating Company and such Participant which relate to the terms of the Awards hereunder upon a Change in Control.

		
	  
	Upon a Change in Control and in the event the Participant terminates employment from the Company with Good Reason or is terminated by the Company (except for Cause), the following shall apply; provided, however, the following shall apply only upon a Change in Control if the successor corporation in the Change in Control or the Company, as applicable, is unable to substitute or replace the Awards on substantially equivalent terms (including, without limitation, performance goals):

		
	(a)
	The Awards previously granted shall be immediately vested and not subject to forfeiture due to any subsequent termination from employment or removal or resignation from the Board.

		
	(b)
	Any Stock Option Awards shall be exercisable within such time as specified in the Option Agreement as if the Participant’s employment was not terminated. In the event the Participant otherwise resigns from the Company any Nonqualified Stock Options and Stock Appreciation Rights shall be exercisable within one year following such termination of employment and any Incentive Stock Options shall be exercisable within 3 months following such termination of employment. In the event the Participant is terminated by the Company for Cause, the Participant shall be required to exercise Options and Stock Appreciation Rights immediately, and Options and Stock Appreciation Rights not immediately exercised shall lapse.

		
	(c)
	Restrictions on any Award shall be eliminated as of such event.

		
	(d)
	If the Change in Control occurs before the end of the Performance Period, no further adjustment shall be made to the number of Shares of Restricted Stock (or any other Awards) contingently granted based on the Performance Criteria.

Upon a Change in Control, Annual Incentive Awards shall be considered earned and shall not be subject to forfeiture due to any subsequent termination from employment. If the Change in Control occurs before the end of the Performance Period, the amount of the Annual Incentive Award shall be determined assuming the Company has achieved a target performance level and the amount shall then be multiplied by the portion of the Performance Period the individual was an active Participant hereunder.

If the Change in Control occurs after the end of the Performance Period but before the Award is paid, the amount payable shall be determined based on the actual performance level. Payment of the Award shall be made as soon as practicable following the Change in Control.

		
	10.2
	Change in Control Defined.    For purposes of this Article, “Change in Control” shall have the same meaning as such term or similar term is defined in a Participant’s individual agreement with the Company which relates to such Participant’s compensation and benefits upon the occurrence of a change in ownership of the Participating Company or similar event.

		
	(a)
	In the event there is no such agreement, “Change in Control” shall mean:

		
	(i)
	The acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act) (a “Person”) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of thirty percent (30%) or more of either (A) the then outstanding shares of Common Stock of the Company (the “Outstanding Company Common Stock”) or (B) the combined voting power of the then outstanding voting securities of the Company entitled to vote generally in the election of directors (the “Outstanding Company Voting Securities”); provided, however, that the following acquisitions shall not constitute an acquisition of control: (A) any acquisition directly from the Company (excluding an acquisition by virtue of the exercise of a conversion privilege), (B) any acquisition by the Company, (C) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any corporation controlled by the Company or (D) any acquisition by any corporation pursuant to a reorganization, merger or consolidation, if, following such reorganization, merger or consolidation, the conditions described in clauses (A), (B) and (C) of subsection (iii) of this section are satisfied;

C-15

Exhibit 10.1

		
	(ii)
	Individuals who, as of the Effective Date, constitute the Board of Directors of the Company (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board of Directors of the Company (the “Board”); provided, however, that any individual becoming a director subsequent to the Effective Date whose election, or nomination for election by the Company’s shareholders, was approved by a vote of at least a majority of the directors then comprising the Incumbent Board shall be considered as though such individual were a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of either an actual or threatened election contest or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board; or

		
	(iii)
	Consummation of a reorganization, merger or consolidation, in each case, unless, following such reorganization, merger or consolidation, (A) more than sixty percent (60%) of, respectively, the then outstanding shares of common stock of the corporation resulting from such reorganization, merger or consolidation and the combined voting power of the then outstanding voting securities of such corporation entitled to vote generally in the election of directors is then beneficially owned, directly or indirectly, by all or substantially all of the individuals and entities who were the beneficial owners, respectively, of the Outstanding Company Common Stock and Outstanding Company Voting Securities immediately prior to such reorganization, merger or consolidation in substantially the same proportions as their ownership, immediately prior to such reorganization, merger or consolidation, of the Outstanding Company Common Stock and Outstanding Company Voting Securities, as the case may be, (B) no Person (excluding the Company, any employee benefit plan or related trust of the Company, or such corporation resulting from such reorganization, merger or consolidation and any Person beneficially owning, immediately prior to such reorganization, merger or consolidation, directly or indirectly, thirty percent (30%) or more of the Outstanding Company Common Stock or Outstanding Company Voting Securities, as the case may be) beneficially owns, directly or indirectly, thirty percent (30%) or more of, respectively, the then outstanding shares of common stock of the corporation resulting from such reorganization, merger or consolidation or the combined voting power of the then outstanding voting securities of such corporation entitled to vote generally in the election of directors and (C) at least a majority of the members of the board of directors of the corporation resulting from such reorganization, merger or consolidation were members of the Incumbent Board at the time of the execution of the initial agreement providing for such reorganization, merger or consolidation; or

		
	(iv)
	Approval by the shareholders of the Company of and consummation of (A) a complete liquidation or dissolution of the Company or (B) the sale or other disposition of all or substantially all of the assets of the Company, other than to a corporation, with respect to which following such sale or other disposition 1) more than sixty percent (60%) of, respectively, the then outstanding shares of common stock of such corporation and the combined voting power of the then outstanding voting securities of such corporation entitled to vote generally in the election of directors is then beneficially owned, directly or indirectly, by all or substantially all of the individuals and entities who were the beneficial owners, respectively, of the Outstanding Company Common Stock and Outstanding Company Voting Securities immediately prior to such sale or other disposition in substantially the same proportion as their ownership, immediately prior to such sale or other disposition, of the Outstanding Company Common Stock and Outstanding Company Voting Securities, as the case may be, 2) no Person (excluding the Company and any employee benefit plan or related trust of the Company, or such corporation and any Person beneficially owning, immediately prior to such sale or other disposition, directly or indirectly, thirty percent (30%) or more of the Outstanding Company Common Stock or Outstanding Company Voting Securities, as the case may be) beneficially owns, directly or indirectly, thirty percent (30%) or more of, respectively, the then outstanding shares of common stock of such corporation and the combined voting power of the then outstanding voting securities of such corporation entitled to vote generally in the election of directors and 3) at least a majority of the members of the board of directors of such corporation were members of the Incumbent Board at the time of the execution of the initial agreement or action of the Board providing for such sale or other disposition of assets of the Company.

		
	(b)
	Notwithstanding (a) above, if the Participant’s employment is terminated before a Change in Control as defined in this Section and the Participant reasonably demonstrates that such termination (i) was at the

C-16

Exhibit 10.1

request of a third party who has indicated an intention or taken steps reasonably calculated to effect a “Change in Control” and who effectuates a “Change in Control” or (ii) otherwise occurred in connection with, or in anticipation of, a “Change in Control” which actually occurs, then for all purposes of this Agreement, the date of a “Change in Control” with respect to the Participant shall mean the date immediately prior to the date of such termination of the Participant’s employment.

		
	10.3
	Good Reason Defined.    “Good Reason” shall mean, without the Participant’s written consent,

		
	(a)
	a demotion in the Participant’s status, position or responsibilities which, in the Participant’s reasonable judgment, does not represent a promotion from the Participant’s status, position or responsibilities as in effect immediately prior to the Change in Control;

		
	(b)
	the assignment to the Participant of any duties or responsibilities which, in the Participant’s reasonable judgment, are inconsistent with such status, position or responsibilities immediately prior to the Change in Control; or any removal of the Participant from or failure to reappoint or reelect the Participant to any of such positions that the Participant had immediately prior to the Change in Control, except in connection with the termination of the Participant’s employment for total and permanent Disability, death or Cause or by the Participant other than for Good Reason;

		
	(c)
	a reduction by the Company in the Participant’s base salary as in effect on the date of the Change in Control or as the same may be increased from time to time by the Company after the date or the Change in Control or the Company’s failure to increase (within twelve (12) months of the Participant’s last increase in base salary) the Participant’s base salary after a Change in Control in an amount which at least equals, on an appropriate percentage basis, an amount reasonably comparable to the percentage increases in base salary for all Company employees at the same level as the affected Participant in the preceding twelve (12) months;

		
	(d)
	the relocation of the principal executive offices of the Company or Subsidiary, whichever entity on behalf of which the Participant performs a principal function of that entity as part of the Participant’s employment services, to a location more than fifty (50) miles outside the Evansville, Indiana metropolitan area or, if the Participant’s services are not performed in Evansville, Indiana, the Company’s requiring the Participant to be based at any place other than the location at which the Participant performed the Participant’s duties immediately prior to the Change in Control, except for required travel on the Company’s business to an extent substantially consistent with his business travel obligations at the time of a Change in Control;

		
	(e)
	a reduction in the Participant’s total direct compensation opportunity after the Change in Control from that available immediately prior to the Change in Control;

		
	(f)
	the failure by the Company to continue in effect any incentive, bonus or other compensation plan in which the Participant participates immediately prior to the Change in Control, including but not limited to this Plan, unless an equitable arrangement (embodied in an ongoing substitute or alternative plan), has been made with respect to such plan in connection with the Change in Control, or the failure by the Company to continue the Participant’s participation therein, or any action by the Company which would directly or indirectly materially reduce the Participant’s participation therein;

		
	(g)
	the failure by the Company to continue to provide benefits (including, but not limited to, annual and long term bonus opportunities), in the aggregate, that are reasonably comparable to the benefits, in the aggregate, being provided for the majority of other Company employees at the same employment level as the Participant prior to the Change in Control;

		
	(h)
	the failure of the Company to obtain a satisfactory agreement with any successor or assign of the Company to assume and agree to perform under any Change in Control agreement between the Company and the Participant; or

		
	(i)
	any request by the Company that the Participant participate in an unlawful act or take any action constituting a breach of the Participant’s professional standard of conduct.

		
	10.4
	Cause Defined.    “Cause” shall mean

		
	(a)
	intentional gross misconduct by the Participant damaging in a material way to the Company;

C-17

Exhibit 10.1

		
	(b)
	the Participant’s commission of fraud against the Company; 

		
	(c)
	the Participant’s public acts of dishonesty or conviction of a felony; or 

		
	(d)
	a material breach of the Participant’s employment agreement, after the Company has given the Participant notice thereof and a reasonable opportunity to cure.

C-18

Exhibit 10.1

ARTICLE XI

ADMINISTRATION

		
	11.1
	The Committee.    The Plan shall be administered and interpreted by the Committee which shall have full authority, discretion and power necessary or desirable for such administration and interpretation. The express grant in this Plan of any specific power to the Committee shall not be construed as limiting any power or authority of the Committee. In its sole and complete discretion the Committee may adopt, alter, suspend and repeal any such administrative rules, regulations, guidelines, and practices governing the operation of the Plan as it shall from time to time deem advisable. In addition to any other powers and, subject to the provisions of the Plan, the Committee shall have the following specific powers: (a) to determine the terms and conditions upon which Awards may be made and exercised; (b) to determine the Participants to which Awards shall be made; (c) to determine all terms and provisions of each Agreement, which need not be identical for types of Awards nor for the same type of Award to different Participants; (d) to construe and interpret all terms, conditions and provisions of the Plan and all Agreements; (e) to establish, amend, or waive rules or regulations for the Plan’s administration; (f) to accelerate the exercisability of any Award, the length of a Performance Period or the termination of any Restriction Period, but only in the event of a Participant’s death or Disability, or pursuant to Article X; and (g) to make all other determinations and take all other actions necessary or advisable for the administration or interpretation of the Plan. The Committee may seek the assistance or advice of any persons it deems necessary to the proper administration of the Plan. Notwithstanding anything contained in this Plan to the contrary, the provisions of this Plan relating to Awards to Outside Directors shall be administered and interpreted exclusively by the Nominating and Corporate Governance Committee of the Board.

		
	11.2
	Committee Decisions.    Unless strictly and expressly prohibited by law, all determinations and decisions made by the Committee pursuant to the provisions of this Plan shall be final, conclusive, and binding upon all persons, including Participants, Designated Beneficiaries, the Company, its shareholders and employees.

		
	11.3
	Rule 16b-3, Section 409A and Section 162(m) Requirements.    Notwithstanding any other provision of the Plan, the Committee may impose such conditions on any Award as it may deem to be advisable or required to satisfy the requirements of Rule 16b-3, Section 409A or Section 162(m).

		
	11.4
	Recoupment.   All Awards granted hereunder and pursuant to any Agreement and any and all payments made or required to be made or stock received or required to be issued hereunder and pursuant to any Agreement shall be subject to repayment to the Company by the Participant (and the successors, assigns, heirs, estate and personal representative of the Participant) pursuant to the terms of (a) any clawback, recoupment or other policy implemented from time to time by the Board, as amended (the “Recoupment Policy”), or (b) any law, rule, regulation, or stock exchange listing standard in effect from time to time, including, but not limited to, Section 304 of the Sarbanes-Oxley Act of 2002 and Section 954 of the Dodd-Frank Wall Street Reform and Consumer Protection Act and the regulations promulgated thereunder, which imposes mandatory “clawback” or recoupment of compensation, payments, or other awards under circumstances set forth in such law, rule, regulation, or listing standard.  As additional consideration for any Award granted to a Participant and for any payment made or required to be made or stock received or required to be issued hereunder and pursuant to any Agreement to any Participant, each Participant agrees that he/she is bound by and subject to the Recoupment Policy as in effect at any time and from time to time, as amended (whether before, at or after the granting or payment of any Award).

C-19

Exhibit 10.1

ARTICLE XII

GENERAL PROVISIONS

		
	12.1
	Withholding.    The Company shall have the right to deduct or withhold, or require a Participant to remit to the Company, any taxes required by law to be withheld from Awards made under this Plan. In the event an Award is paid in the form of Common Stock, the Participant may remit to the Company the amount of any taxes required to be withheld from such payment in cash, or, in lieu thereof, the Company may withhold (or the Participant may be provided the opportunity to elect to tender) the number of shares of Common Stock equal in Fair Market Value to the amount required to be withheld.

		
	12.2
	Terms of Awards.

		
	(a)
	 Award Agreements.  Each Award granted under the Plan shall be evidenced in a corresponding Award Agreement provided in writing to the Participant, which shall specify the terms, conditions and any rules applicable to the Award. 

		
	(b)
	Minimum Vesting Requirements.  No condition on the vesting of an Award that is based upon achievement of specified performance goals shall be based on performance over a period of less than one year.  Except with respect to Awards to Outside Directors where the term of office is less than three years, no condition on the vesting of an Award that is based only on continued employment or the passage of time shall provide for vesting in full of the Award sooner than annual installments over three years from the date of grant of the Award. Notwithstanding the foregoing, up to five percent of the Awards available for issuance under the Plan after May 24, 2016 may be issued without regard to the requirements of this Section 12.2(b).

		
	12.3
	Nontransferability.    Except as otherwise permitted by the Committee, no Award, including any Options, granted under the Plan may be sold, transferred, pledged, assigned or otherwise alienated or hypothecated, except by will or the laws of descent and distribution. Further, no lien, obligation, or liability of the Participant may be assigned to any right or interest of the Participant in an Award under this Plan.  Incentive Stock Options may be exercised, during the Participant’s lifetime, only by the Participant.

		
	12.4
	No Right to Employment.    Neither the Plan, nor any Award made, or any other action taken, hereunder shall be construed as giving any Participant or other person any right of employment, by contract or otherwise, or continued employment with the Participating Company.

		
	12.5
	Rights as Shareholder.    Subject to the terms and conditions of each particular Award, no Participant or Designated Beneficiary shall be deemed a shareholder of the Company nor have any rights as such with respect to any shares of Common Stock to be provided under the Plan until he or she has become the holder of such shares.

		
	12.6
	Construction of the Plan.    Except to the extent superceded by the laws of the United States, the Plan and all Agreements shall be governed, construed, interpreted and administered in accordance with the laws of the State of Indiana, without regard to conflict of laws principles thereof. In the event any provision of the Plan or any Agreement shall be held invalid, illegal or unenforceable, in whole or in part, for any reason, such determination shall not affect the validity, legality or enforceability of any remaining provision, portion of provision or Plan overall, which shall remain in full force and effect as if the Plan had been absent the invalid, illegal or unenforceable provision or portion thereof.

		
	12.7
	Amendment of Plan.    The Committee or the Board of Directors may amend, suspend, or terminate the Plan or any portion thereof at any time, provided such amendment is made with shareholder approval if and to the extent such approval is necessary to comply with any legal requirement or any requirement of the market or exchange on which the Common Stock is listed, including for these purposes any approval requirement which is a requirement for the performance-based compensation exception under Section 162(m).

		
	12.8
	Amendment of Award.    No amendment shall be made to an outstanding Award without written consent of the affected Participant.

		
	12.9
	Exemption from Computation of Compensation for Other Purposes.    By acceptance of an applicable Award under this Plan, subject to the conditions of such Award, each Participant shall be considered in agreement that all shares of Stock sold or awarded and all Options granted under this Plan shall be considered

C-20

Exhibit 10.1

extraordinary, special incentive compensation and will not be included as “earnings,” “wages,” “salary” or “compensation” in any pension, welfare, life insurance, or other employee benefit arrangement of the Company except as otherwise specifically provided in such arrangement.

		
	12.10
	Legend.    In its sole and complete discretion, the Committee may elect to legend certificates representing Shares sold or awarded under the Plan, to make appropriate references to the restrictions imposed on such Shares.

		
	12.11
	Special Provisions for Certain Participants.    All Award Agreements for Participants subject to Section 16(b) of the Exchange Act shall be deemed to include any such additional terms, conditions, limitations and provisions as Rule 16b-3 requires for the Award to qualify for exemption from Section 16(b), unless the Committee in its discretion determines that any such Award should not be governed by Rule 16b-3. All performance-based Awards to Covered Participants shall be deemed to include any such additional terms,  conditions, limitations and provisions as are necessary to comply with the performance-based compensation exemption of Section 162(m), unless the Committee, in its discretion, determines that any such Award is not intended to qualify for the exemption for performance-based compensation under Section 162(m).

		
	12.12
	Unfunded Plan.    The Plan shall be unfunded and the Company shall not be required to segregate any assets in connection with any Awards under the Plan. Any liability of the Company to any person with respect to any Award under the Plan or any Award Agreement shall be based solely upon the contractual obligations that may be created as a result of the Plan or any such award or agreement. No such obligation of the Company shall be deemed to be secured by any pledge of, encumbrance on, or other interest in, any property or asset of the Company or any Subsidiary. Nothing contained in the Plan or any Award Agreement shall be construed as creating in respect of any Participant (or beneficiary thereof or any other person) any equity or other interest of any kind in any assets of the Company or any Subsidiary or creating a trust of any kind or a fiduciary relationship of any kind between the Company, any Subsidiary and/or any such Participant, any beneficiary thereof or any other person.

		
	12.13
	Conflict with Employment Agreement.    Except as specified in Article IX, Article X or otherwise restricted under Section 12.11, to the extent any provision of this Plan conflicts with any provision of a written employment agreement between an Employee and the Company, the material terms of which have been approved by the Board, the provisions of the employment agreement shall control.

		
	12.14
	Gender and Number.    Where the context admits, words in the masculine gender shall include the feminine gender, the plural shall include the singular and the singular shall include the plural.

		
	12.15
	Severability.    In the event any provision of this Plan shall be held to be illegal or invalid for any reason, such illegality or invalidity shall not affect the remaining parts of this Plan, and this Plan shall be construed and endorsed as if such illegal or invalid provision had never been contained in this Plan.

		
	12.16
	Effect of Headings.    The descriptive headings of the Articles and Sections of this Plan are inserted for convenience of reference and identification only and do not constitute a part of this Plan for purposes of interpretation.

		
	12.17
	Payment.    Notwithstanding anything herein or in any Award Agreement to the contrary, any payment required to be made to a Participant hereunder shall be made in a lump sum within the period permitted for such payment to be a short term deferral under Section 409A, unless such payment is properly deferred by the Participant. Notwithstanding the foregoing, if the payment is deferred compensation (as defined in Section 409A) and if the Participant is a specified employee (as defined in Section 409A) and a payment is required upon separation from service (as defined in Section 409A), then such payment shall be made on the first day of the seventh month following separation from service or if earlier on the Participant’s death.

		
	12.18
	No Liability.    No member of the Board or the Committee or any officer or Employee shall be personally liable for any action, omission or determination made in good faith in connection with this Plan. The Company shall indemnify and hold harmless the members of the Committee, the Board and the officers and Employees, and each of them, from and against any and all loss which results from liability to which any of them may be subjected by reason of any act or conduct (except willful misconduct or gross negligence) in their official capacities in connection with the administration of this Plan, including all expenses reasonably incurred in their defense, in case the Company fails to provide such defense. By participating in this Plan, each Employee agrees to release

C-21

Exhibit 10.1

and hold harmless the Company and its Subsidiaries (and their respective directors, officers and employees), the Board and the Committee, from and against any tax or other liability, including without limitation, interest and penalties, incurred by the Employee in connection with his participation in this Plan.

__________________________________________________________________________________________________

IN WITNESS WHEREOF, the Company has caused this instrument to be executed by its duly authorized Compensation and Benefits Committee Chairperson as of this _ day of ___________, 2016.

	
		
	VECTREN CORPORATION

	 
	 

	By:
	 

	 
	Jean L. Wojtowicz

	 
	 

	Its:
	Compensation and Benefits
Committee Chairperson

ATTEST 
	
		
	By:

	 
	Ronald E. Christian

	 
	 

	Its:
	Executive Vice President, Chief Legal
and External Affairs Officer, and Secretary

C-22Exhibit 10.1

 

AGREEMENT
OF PURCHASE AND SALE

AND JOINT ESCROW INSTRUCTIONS

 

THIS AGREEMENT OF PURCHASE AND SALE AND
JOINT ESCROW INSTRUCTIONS (this “Agreement”) is made and entered into as of the 4th day of May, 2016
(the “Effective Date”), by and between Octavia
Gateway Holdings, LLC, a Delaware limited liability company (“Seller”),
and SRT SF Retail I, LLC, a Delaware limited liability company (“Buyer”).

 

RECITALS

 

A.           Seller
owns certain improved real property commonly known as 8 Octavia Boulevard, Units 102, 307 and 308,
San Francisco, California, in the City and County of San Francisco, State of California, which is more particularly described
on Exhibit “A” attached hereto (excluding any improvements owned by any tenant pursuant to its Lease) (the “Real
Property”), together with all of Seller’s right, title and interest, if any, in and to (i) all leases of space
in said Real Property and any guaranties of such leases (collectively, the “Leases”), (ii) all of the
Binding Contracts, if any, that have been approved by Buyer pursuant to Paragraph 14, (iii) all intangible personal property,
to the extent assignable and related exclusively to the Real Property, including but not limited to, any such (A) warranties, guaranties
and indemnities, (B) governmental licenses, permits, or similar rights, (C) plans, drawings, specifications, surveys, engineering
reports, other technical descriptions and any names by which the improvements on the Real Property may be known or identified,
including its street address; but excluding any contracts other than the Leases and, to the extent approved by Buyer pursuant to
Paragraph 14, the Binding Contracts (with the exception of such excluded property, the property described in this subparagraph
(iii) is collectively referred to as the “Intangible Property”), and (iv) any tangible personal property
owned by Seller and located in the Real Property excluding any such property which is owned by any tenant or integrated with the
property manager’s operation of other properties (the “Personal Property”) are hereinafter collectively
referred to as the “Property”.

 

B.           Concurrently
herewith, (i) Grove Street Hayes Valley LLC, a Delaware limited liability company (“Grove
Seller”) and Buyer have entered into that certain Agreement of Purchase and Sale and Joint Escrow Instructions, dated
as of even date herewith (the “Grove Purchase Agreement”), and (ii) Hayes
Street Hayes Valley LLC, a Delaware limited liability company (“Hayes Seller”, and together with
Grove Seller, “Other Sellers”) and Buyer have entered into that certain Agreement of Purchase and Sale
and Joint Escrow Instructions, dated as of even date herewith (the “Hayes Purchase Agreement”, and together
with the Grove Purchase Agreement, the “Other Purchase Agreements”).

 

C.           Buyer
desires to purchase from Seller, and Seller desires to sell to Buyer, the Property on and subject to the terms and conditions of
this Agreement.

 

AGREEMENT

 

NOW, THEREFORE, in
consideration of the mutual covenants set forth in this Agreement and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, Seller and Buyer hereby agree as follows:

 

1.          Purchase
and Sale. Seller agrees to sell to Buyer, and Buyer agrees to purchase from Seller, the Property upon the terms and conditions
set forth in this Agreement.

 

2.          Purchase
Price. The Purchase Price (“Purchase Price”) for the Property shall be Two Million Seven Hundred
Forty Thousand and 00/100 Dollars ($2,740,000.00). The Purchase Price shall be payable as follows:

 

    	 	1	 

     

    

 

(a)          Deposit.
Prior to 5:00 P.M. (Pacific Time) on the second (2nd) Business Day after the Effective Date (the “Initial Deposit
Deadline”), Buyer shall deliver or cause to be delivered to First American Title Insurance Company, at 101 Mission
Street, Suite 1600, San Francisco, CA 94105, attention: Heather Kucala (“Escrow Holder”), cash or other
immediately available funds in the amount of Seventy Thousand and 00/100 Dollars ($70,000.00) (the “Initial Deposit”).
In the event that the Initial Deposit is not timely funded on or before the Initial Deposit Deadline for any reason, then this
Agreement shall be automatically null and void and of no further force and effect (and Buyer shall have no rights, and Seller
shall have no obligations, under this Agreement of any kind or nature). Prior to 5:00 P.M. (Pacific Time) on the second (2nd)
Business Day following the Contingency Date, Buyer shall deliver or cause to be delivered to Escrow Holder cash or other immediately
available funds in the amount of Seventy Thousand and 00/100 Dollars ($70,000.00) (the “Additional Deposit”).
The Initial Deposit and, if and when deposited with Escrow Holder, the Additional Deposit, are collectively referred to herein
as the “Deposit”. The Deposit shall be invested in an interest earning account designated by Buyer,
subject to Seller’s reasonable approval, and any interest earned thereon shall be a part of the Deposit for all purposes
under this Agreement. At the Close of Escrow, the Deposit, and any interest accruing thereon, shall be applied and credited toward
payment of the Purchase Price.

 

(b)          Cash
Balance. On or before 11:00 A.M. (Pacific Time) on the Closing Date, Buyer shall deposit into Escrow cash or other immediately
available funds in the amount of the balance of the Purchase Price, as adjusted by Buyer’s share of expenses and prorations.

 

(c)          Independent
Consideration. Contemporaneously with the execution and delivery of this Agreement, Buyer has paid to Seller as further
consideration for this Agreement, in cash, the sum of $100.00 (the "Independent Consideration"), in addition
to the Deposit and the Purchase Price and independent of any other consideration provided hereunder, which Independent Consideration
is fully earned by Seller and is non-refundable under all circumstances.

 

		3.	Escrow.

 

(a)          Opening
of Escrow. Buyer and Seller shall promptly evidence the opening of Escrow by delivering a fully executed copy of this
Agreement to Escrow Holder.

 

(b)          Close
of Escrow. The Close of Escrow shall occur, if at all, on the Closing Date. The “Closing Date”
means the date that is twenty (20) days after the Contingency Date, provided that such date is a Business Day which is followed
by a Business Day, otherwise the Closing Date shall be the next soonest date that is a Business Day which is followed by a Business
Day. Buyer and Seller hereby authorize their respective attorneys to execute and deliver to Escrow Holder any additional or supplementary
instructions as may be necessary or convenient to implement the terms of this Agreement and close the transactions contemplated
hereby, provided such instructions are consistent with and merely supplement this Agreement and shall not in any way modify, amend
or supersede this Agreement. Such supplementary instructions, together with the escrow instructions set forth in this Agreement,
as they may be amended from time to time by the parties, shall collectively be referred to as the “Escrow Instructions”.
The Escrow Instructions may be amended and supplemented by such standard terms and provisions as the Escrow Holder may request
the parties hereto to execute, provided that any such standard terms and provisions do not materially increase Seller’s
or Buyer’s obligations hereunder or materially decrease Seller’s or Buyer’s rights hereunder. The parties hereto
and Escrow Holder acknowledge and agree that in the event of a conflict between any provision of such standard terms and provisions
supplied by the Escrow Holder and the Escrow Instructions, the Escrow Instructions shall prevail.

 

		4.	Buyer’s Investigations.

 

(a)          Access
to and Delivery of Materials. Buyer hereby acknowledges that prior to the Effective Date, Seller has delivered to Buyer
or made available for Buyer’s review the documents listed on Exhibit “B” attached hereto (collectively,
“Seller’s Documents”). Seller shall also make available to Buyer, promptly following Buyer’s
written request, any other documents in Seller’s possession, other than Excluded Documents, which are reasonably requested
by Buyer with respect to the Property. As used herein, “Excluded Documents” shall mean any documents
involving either Seller’s financing or refinancing of the Property, any purchase and sale agreements and correspondence
pertaining to Seller’s acquisition of the Property, any documents pertaining to the potential acquisition of the Property
by any past or prospective purchasers, any third party purchase inquiries and correspondence, appraisals of the Property, attorney-client
privileged documents, internal budgets or financial projections, and any other internal documents. Except as may otherwise be
expressly set forth in Paragraph 12 below, all third party reports are delivered to Buyer without representation or warranty
by or recourse against, Seller or any third party preparing such report or any of their respective direct or indirect partners,
managers, members, employees, officers, directors, agents, subsidiaries or affiliates, and its or their respective successors
and assigns (and Buyer hereby releases the same from and against any obligation or liability in connection therewith). On termination
of this Agreement for any reason, Buyer shall promptly destroy all Seller’s Documents and other information, of whatever
nature and in whatever form, with respect to the Property, heretofore or hereafter delivered by Seller or obtained by Buyer and/or
created by or on behalf of Buyer in reliance upon such information, without any copies being retained by Buyer. In any such event,
and as a covenant which shall survive the termination of this Agreement, all such information, as well as the terms of this Agreement,
shall be treated by Buyer as confidential and none of it shall be disclosed by Buyer to any other party thereafter for any purpose
or in any context, except as provided in Paragraph 20 below.

 

    	 	2	 

     

    

 

(b)          Due
Diligence.

 

(i)          General.
On or before the date which is twenty (20) days after the Effective Date (the “Contingency Date”), Buyer
shall have completed any and all due diligence activities which Buyer may choose to conduct or commission, including without limitation,
a review of: Seller’s Documents, any other documents made available to Buyer, the condition of title to the Real Property
as disclosed by the PTR, the condition of the improvements located on the Real Property and all operating systems relating thereto,
the presence of Hazardous Materials, if any, the status of Binding Contracts and the Leases, compliance with Governmental Regulations,
the development potential (or lack thereof) of the Real Property, and any and all other matters of similar or dissimilar nature
relating in any way to the Property or Buyer’s purchase of the Property (collectively, the “Due Diligence”).

 

(ii)         Estoppels.
In connection with such Due Diligence, Seller shall work diligently to have (A) the tenants under the Leases execute an estoppel
certificate for the benefit of Seller, Buyer and Buyer’s lender in the form attached hereto as Exhibit “C”
and (B) 8 Octavia Boulevard Owners’ Association (the “Association”) execute an estoppel certificate
for the benefit of Seller, Buyer and Buyer’s lender in the form attached hereto as Exhibit “M”, in each
case with such terms as have been previously approved by Buyer (i.e., Buyer shall review and approve each such completed
estoppel certificate prior to the date that it is distributed to the tenant or the Association, as applicable, for review and
execution by such tenant or the Association, as applicable), provided that Seller shall not be in breach of this sentence in the
event that, despite its diligent efforts, it fails to obtain such executed estoppel certificates from the tenants and/or the Association.
Buyer shall so approve each such estoppel certificate (which approval shall not be unreasonably withheld), or provide its comments
thereto, within two (2) Business Days following its receipt of the same otherwise Buyer shall be deemed to have approved the same.
Seller shall promptly deliver to Buyer all executed estoppel certificates received by Seller. Seller makes no representation as
to the number of estoppel certificates, if any, that will be returned to Buyer. In the event executed estoppel certificates are
not received on or before the date that is two (2) Business Days prior to the Closing Date from all tenants of the Real Property
and the Association, dated no earlier than thirty (30) days prior to the Closing Date, and without material adverse factual disclosure
compared to the form of estoppel distributed to such tenant or the Association, as applicable, for its review and execution pursuant
to the terms hereof (collectively, the “Required Estoppels”), then Buyer shall have the right to terminate
this Agreement and upon any such termination receive a refund of its Deposit; provided, however, that any objection by Buyer to
any executed estoppel certificate must be raised by Buyer within two (2) Business Days following its receipt of the same otherwise
such estoppel certificate shall be deemed to satisfy the requirements of this Paragraph. Notwithstanding anything contained
herein to the contrary, in no event shall any fact or issue disclosed in any tenant’s Lease or made on Exhibit “J”
attached hereto, constitute a material adverse factual disclosure or otherwise be objected to by Buyer.

 

(iii)        Contracts.
Notwithstanding anything contained herein to the contrary, Seller shall terminate all of its listing agreements and property management
agreements, to the extent relating to the Property, at its expense as of the Close of Escrow (provided that this obligation to
terminate listing agreements and property management agreements shall only apply to those agreements entered into by Seller to
the extent the same apply to the Real Property, and shall in no event apply to any listing agreements or property management agreements
entered into by the Association).

 

(iv)        Third
Party Communications. Notwithstanding anything to the contrary contained herein, Buyer shall not (i) communicate with
any tenants under the Leases with respect to the Property without affording Seller a reasonable opportunity to have a representative
of Seller participate in any conversations with such tenants or (ii) contact any governmental authority having jurisdiction over
the Property with respect to the Property, other than in connection with Buyer’s due diligence evaluation of the Property
to verify zoning and/or compliance matters, without obtaining the prior written consent of Seller and without affording Seller
a reasonable opportunity to have a representative of Seller participate in any conversations with such governmental authority.

 

    	 	3	 

     

    

 

(c)          Buyer’s
Right to Terminate. Buyer may at Buyer’s election and discretion terminate this Agreement, for any reason or no
reason, at any time prior to 5:00 P.M. (Pacific Time) on the Contingency Date by delivering written notice thereof to Seller and
Escrow Holder, and upon such termination, Paragraph 5(c) shall apply. If Buyer elects not to terminate this Agreement in
accordance with the foregoing sentence, Buyer shall deliver to Seller and Escrow Holder, prior to 5:00 P.M. (Pacific Time) on
the Contingency Date, written notice of Buyer’s intent to proceed with the acquisition of the Property under the terms of
this Agreement (the “Approval Notice”), and the Deposit shall thereupon become non-refundable to Buyer
except as otherwise expressly provided in this Agreement. In the event that Buyer fails to timely deliver the Approval Notice
pursuant to the terms of this Paragraph 4(c), then Buyer shall be deemed to have terminated this Agreement pursuant to
this Paragraph 4(c) and Paragraph 5(c) shall apply.

 

(d)          Access
by Buyer. Subject to the rights of tenants and the requirements of Paragraph 4(e), at Buyer’s sole cost and
expense, Buyer and Buyer’s agents and representatives shall have the right, upon no less than one (1) Business Day’s
prior notice to Seller, to enter upon the Real Property at all reasonable times in order to conduct such inspections, tests or
studies as Buyer may deem appropriate (including, without limitation, for the preparation of an ALTA/NSPS Land Title Survey of
the Real Property), excluding invasive investigations of the land or improvements thereon; except that any such entry shall be
coordinated with Seller and Seller’s property manager or other agent of Seller in control of the Property, and shall be
conducted in such a manner as to not materially interfere with the on-going operation of the Property. Any damage caused to the
Property in connection with any inspection, test, or study shall be promptly and fully repaired by Buyer and the Property returned
to its prior condition, all at Buyer’s cost, which obligation shall survive any termination of this Agreement. In no event
shall Buyer, prior to the Close of Escrow, indicate in any way that Buyer owns or holds any other rights of any nature in the
Property or any portion thereof, or that Buyer is in any manner acting on behalf of Seller. Buyer shall keep the Property free
and clear of any mechanic’s liens or materialmen’s liens arising out of any of Buyer’s activities or those of
its agents and representatives, which obligation shall survive any termination of this Agreement. Not less than two (2) Business
Days prior to any work being conducted on the Real Property by or for the benefit of Buyer, which work could be the basis for
the filing of a mechanic’s lien claim against the Real Property if such work were not duly paid for, Buyer shall obtain
Seller’s written consent and shall allow Seller to post such notices of non-responsibility with respect thereto as Seller
may deem appropriate. Further, except for the mere discovery of existing conditions on or affecting the Property or to the extent
arising from the active negligence or willful misconduct of Seller, Buyer hereby agrees to indemnify, defend and hold Seller harmless
from and against any and all loss, cost, liability or expense arising out of the acts or omissions of Buyer and/or its agents
or representatives in connection with any such entry, inspection, test, study or other activity, including without limitation
all legal expenses reasonably incurred by Seller in connection therewith. The indemnity provided herein shall survive the Close
of Escrow and any termination of this Agreement and shall not be limited by the insurance required to be maintained under Paragraph
4(e).

 

(e)          Insurance.
Prior to Buyer entering upon the Real Property, or any other person or entity entering upon the Real Property pursuant to Buyer’s
rights under Paragraph 4(d) (each a “Consultant”), Buyer shall, and shall cause each and every
such Consultant, to furnish Seller with a certificate of insurance evidencing that Seller has been added as an additional insured
under an insurance policy maintained by Buyer or such Consultant, as applicable, and all premiums due on the policy have been
paid. Each such insurance policy shall be from an insurer licensed in the State of California with a rating by A.M. Best of A-
or higher, and provide coverage against any claim for personal liability or property damage caused by Buyer or such Consultant,
as applicable, and its respective agents or representatives, with a combined single limit liability of not less than One Million
Dollars ($1,000,000) per occurrence and Two Million Dollars ($2,000,000) in the aggregate.

 

		5.	Conditions to the Close of Escrow.

 

(a)          Conditions
Precedent to Buyer’s Obligations. The Close of Escrow and Buyer’s obligations with respect to the consummation
of the transactions contemplated by this Agreement are subject to the timely satisfaction or waiver by Buyer of the following
conditions:

 

    	 	4	 

     

    

 

(i)          Representations,
Warranties and Covenants of Seller. Seller shall have duly performed in all material respects all material covenants to
be performed by Seller hereunder, and all of Seller’s representations and warranties set forth in Paragraph 12 shall
be true and correct as of the Effective Date and the Closing Date (except to the extent that Paragraph 12 expressly provides
that such representations and warranties are made as of the Effective Date) in all material respects.

 

(ii)         Delivery
of Documents. Seller shall have delivered all of the duly executed documents required to be delivered by Seller pursuant
to Paragraph 6(a).

 

(iii)        Title
Insurance. As of the Close of Escrow, First American Title Insurance Company (the “Title Company”)
shall have issued or shall have unconditionally committed to issue an ALTA extended coverage owner’s policy of title insurance
showing title to the Real Property vested in Buyer subject only to the Permitted Exceptions, with a liability amount equal to
the Purchase Price, which includes an endorsement providing affirmative mechanics’ and materialmen’s lien coverage
against liens for services, labor or material arising out of the work described in Paragraph 5(a)(iii)(z) below, which
endorsement shall be in a form reasonably acceptable to Buyer and Buyer’s lender (the “Title Policy”).
Buyer has obtained from the Title Company that certain preliminary title report with respect to the Property, dated as of March
31, 2016, and issued under order no. NCS-787084-2-SF (the “PTR”), containing such exceptions as the
Title Company would specify in the Title Policy and copies of all documents of record identified as exceptions in such PTR. On
or before the date that is five (5) days prior to the Contingency Date (or within five (5) days after Buyer’s receipt of
any supplemental preliminary title report that is delivered to Buyer later than the date that is five (5) days prior to the Contingency
Date), Buyer shall have the right to give written notice to Seller disapproving any items identified as exceptions in such PTR
(or supplemental preliminary title report), and identifying the items and/or exceptions disapproved (a “Title Disapproval”).
Notwithstanding anything contained herein to the contrary, Buyer shall have no right to deliver a Title Disapproval with respect
to any exception contained in any such supplemental preliminary title report which (1) was also contained in the original PTR
or (2) would constitute a Permitted Exception regardless of whether or not included in any such report. Any exceptions in the
PTR or any supplemental preliminary title report not timely disapproved by Buyer with a Title Disapproval shall be deemed to have
been approved by Buyer, other than those items Seller is obligated to remove in the last sentence of this Paragraph. Upon
Buyer’s delivery of a Title Disapproval, Seller may elect, in its sole discretion, to remove (or otherwise modify or cure
in a manner reasonably satisfactory to Buyer) said disapproved item or items at or prior to the Close of Escrow, by delivering
written notice of such election to Buyer not later than three (3) days following the date Seller receives a Title Disapproval.
If Seller does not notify Buyer in writing that Seller will eliminate (or otherwise cure to Buyer’s reasonable satisfaction)
such disapproved exceptions or matters within such three (3) day period, Seller shall be deemed to have elected not to remove
(or otherwise cure) such exception and Buyer shall have five (5) days following the date Seller received the Title Disapproval
to terminate this Agreement in accordance with Paragraph 5(c). If Buyer fails to so terminate this Agreement, Buyer shall
be deemed to have withdrawn its disapproval and approved such exception, other than those items Seller is obligated to remove
in the last sentence of this Paragraph. The term “Permitted Exceptions” shall mean: the specific
exceptions listed in the PTR and any supplemental preliminary title report approved or deemed approved by Buyer or which Seller
has agreed to cure in a manner reasonably acceptable to Buyer; applicable zoning and building ordinances and land use regulations;
such state of facts as would be disclosed by a survey or physical inspection of the Property; the lien of taxes and assessments
not yet delinquent; any standard form exclusions from coverage set forth in the jacket of the Title Policy; any exceptions caused
by Buyer, its agents, representatives or employees; any liens arising from or related to Lease Inducement Costs for which Buyer
is liable pursuant to Paragraph 9(f); and the rights of the tenants under the Leases, as tenants only. It shall not be
a condition to the Close of Escrow if Buyer elects to obtain any endorsements (other than the mechanic’s lien endorsement
contemplated above), requests reinsurance or coinsurance, or otherwise elects to obtain any different or additional coverage in
excess of that provided by the Title Policy, and in no event shall the Close of Escrow be delayed by reason of having to obtain
a survey or to fulfill any other necessary title requirement, so long as the Title Company is in position to issue the Title Policy
as of the Closing Date. Notwithstanding the foregoing provisions of this Paragraph 5(a)(iii) to the contrary, subject to
the terms and conditions of this Agreement, (y) Seller does agree to deliver title to the Real Property at the Close of Escrow
free and clear of liens of any deeds of trust and/or mortgages created by, under or through Seller or any Affiliate of Seller,
which liens Seller shall cause to be released at or prior to the Close of Escrow (with Seller having the right to apply the Purchase
Price or a portion thereof for such purpose), and (z) Seller agrees to use commercially reasonable efforts to remove or cause
to be insured over by the Title Company, in a manner reasonably acceptable to Buyer, any mechanics’ or materialmen’s
liens on or attaching to the Real Property relating to or arising out of any work of improvement contracted for by or on behalf
of Seller or any Affiliate of Seller. If reasonably requested by the Title Company in connection with the issuance of affirmative
mechanic’s and materialmen’s lien coverage to Buyer and/or Buyer’s lender, Seller shall provide the Title Company
with a mechanics lien indemnity, in form reasonably acceptable to the Title Company and Seller, with respect to any work of improvement
performed on or benefitting the Real Property (and/or the project of which the Real Property is a part) which was contracted for
by or on behalf of Seller or any Affiliate of Seller.

 

    	 	5	 

     

    

 

(iv)        No
Material Defaults Under Other Purchase Agreements. No material breach or material default by any of the Other Sellers
shall exist under any of the Other Purchase Agreements.

 

(v)         Estoppel
Certificates. Buyer shall have received the Required Estoppels pursuant to Paragraph 4(b)(ii).

 

(b)          Conditions
Precedent to Seller’s Obligations. The Close of Escrow and Seller’s obligations with respect to the consummation
of the transactions contemplated by this Agreement are subject to the timely satisfaction or waiver by Seller of the following
conditions:

 

(i)          Representations,
Warranties and Covenants of Buyer. Buyer shall have duly performed in all material respects each and every material covenant
of Buyer hereunder, and all of Buyer’s representations and warranties set forth in this Agreement shall be true and correct
as of the Effective Date and the Closing Date (except to the extent that Paragraph 13 expressly provides that such representations
and warranties are made as of the Effective Date) in all material respects.

 

(ii)         Delivery
of Documents and Purchase Price. Buyer shall have timely delivered the Purchase Price pursuant to the provisions of Paragraph
2, and shall have delivered all of the duly executed documents required to be delivered by Buyer pursuant to Paragraph
6(b).

 

(iii)        No
Material Defaults Under Other Purchase Agreements. No material breach or material default by Buyer shall exist under any
of the Other Purchase Agreements.

 

(c)          Effect
of Termination. In the event any condition set forth in this Paragraph 5 is not timely satisfied, unless waived
by the applicable party, Buyer or Seller, as applicable, shall have the right to terminate this Agreement and if this Agreement
is so terminated or is terminated by either party pursuant to any other provision of this Agreement giving that party the right
to do so, then:

 

(i)          Termination
of Agreement. This Agreement, the Escrow, and the rights and obligations of Buyer and Seller shall terminate, except as
otherwise expressly provided herein;

 

(ii)         Return
of Deposit. Except as otherwise provided herein (including, without limitation, as provided in Paragraph 18(b)),
the Deposit, and any interest accruing thereon, shall be promptly returned to Buyer and any documents and monies deposited by
the parties which are then held by Escrow Holder shall be returned to the party depositing same; and

 

(iii)        Cancellation
Fees and Expenses. Any cancellation charges required to be paid to Escrow Holder and the Title Company shall be borne
equally by Buyer and Seller (unless one party is in breach or default hereunder in which case the defaulting party shall pay the
cancellation charges), and all other charges shall be borne by the party incurring same.

 

(d)          Close
of Escrow. It is contemplated that the transaction shall be closed by means of the concurrent delivery of the documents
of title, the commitment to deliver the Title Policy and the payment of the Purchase Price. Notwithstanding the foregoing, there
shall be no requirement that Seller and Buyer physically meet for the Close of Escrow, and all documents to be delivered at the
Close of Escrow shall be delivered to the Escrow Holder unless the parties hereto mutually agree otherwise. Seller and Buyer agree
to use reasonable efforts to complete all requirements for the Close of Escrow prior to the Closing Date. Seller and Buyer also
agree that disbursement of the Purchase Price, as adjusted by the prorations, shall not be conditioned upon the recording of the
Deed, but rather, upon the satisfaction or waiver of all conditions precedent to the Close of Escrow and the irrevocable agreement
by the Title Company to issue the Title Policy without reservation for any “gap” between Close of Escrow and the recordation
of the Deed. The date upon which such satisfaction or waiver and such irrevocable agreement occurs shall be the “Close
of Escrow”.

 

    	 	6	 

     

    

 

		6.	Deliveries to Escrow Holder.

 

(a)          Seller’s
Deliveries. Seller hereby covenants and agrees to deliver or cause to be delivered to Escrow Holder at least one (1) Business
Day prior to the Closing Date the following instruments and documents:

 

(i)          Deed.
A grant deed (“Deed”), duly executed and acknowledged in recordable form by Seller, conveying Seller’s
interest in the Real Property to Buyer. The Deed shall be in the form attached hereto as Exhibit “D”.

 

(ii)         Bill
of Sale. A bill of sale (“Bill of Sale”) duly executed by Seller, conveying to Buyer, without
warranty, all of Seller’s right, title and interest in and to the Personal Property. The Bill of Sale shall be in the form
of Exhibit “E” attached hereto.

 

(iii)        General
Assignment. An assignment and assumption (“General Assignment”), duly executed by Seller, assigning
to Buyer, without warranty, all of Seller’s right, title and interest in and to any and all Intangible Property, Leases
and any Binding Contracts, all to the extent transferable by Seller. The General Assignment shall be in the form of Exhibit
“F” attached hereto.

 

(iv)        Non-Foreign
Certifications. A certificate duly executed by Seller, in the form of Exhibit “G” attached hereto,
and a California Form 593-C executed by Seller.

 

(v)         Proof
of Authority. Such proof of Seller’s authority and authorization to enter into this Agreement and the transactions
contemplated hereby, and such proof of the power and authority of the individual(s) executing and/or delivering any instruments,
documents or certificates on behalf of Seller to act for and bind Seller as may be reasonably required by Title Company.

 

(vi)        Notice
to Tenants. Notices to all lessees under the Leases for the Property, if any, in the form of Exhibit “H”
attached hereto, duly executed by Seller. Buyer shall promptly provide to Seller all necessary information regarding the Buyer
required to complete the tenant notices, if any.

 

(vii)       Owner’s
Affidavit and Gap Indemnity. An owner’s affidavit in the form of Exhibit “I” attached hereto
and a gap indemnity in a form reasonably acceptable to Seller and the Title Company, each duly executed by Seller.

 

(b)          Buyer’s
Deliveries. Buyer hereby covenants and agrees to deliver or cause to be delivered to Escrow Holder at least one (1) Business
Day prior to the Closing Date the following instruments and documents:

 

(i)          General
Assignment. A counterpart of the General Assignment, duly executed by Buyer.

 

(ii)         Proof
of Authority. Such proof of Buyer’s authority and authorization to enter into this Agreement and the transactions
contemplated hereby, and such proof of the power and authority of the individual(s) executing and/or delivering any instruments,
documents or certificates on behalf of Buyer to act for and bind Buyer as reasonably may be required by Title Company.

 

7.          Deliveries
Upon Close of Escrow. Promptly following the Close of Escrow, outside of the escrow with Escrow Holder, Seller shall deliver
to Buyer:

 

(a)          Documents.
Any originals of the Leases and any Binding Contracts in Seller’s possession.

 

    	 	7	 

     

    

 

(b)          Personal
Property. Subject to the terms of the Leases and any Binding Contracts, possession of the Personal Property, including
without limitation all keys and access codes to the improvements on the Real Property in Seller’s possession.

 

8.          Costs
and Expenses. Buyer shall pay the title premium for the Title Policy, including the standard coverage portion and all
title premiums associated with any ALTA extended coverage requested by Buyer and any title endorsements requested by Buyer. Buyer
shall pay the cost of any survey commissioned by Buyer in connection with obtaining extended title coverage. Buyer shall pay all
other due diligence expenses incurred by Buyer. Buyer shall pay all of Escrow Holder’s charges. Seller shall pay the City
and County of San Francisco transfer tax and recording charges with respect to the Deed. Buyer and Seller shall each bear their
own legal and professional fees and expenses and any other costs incurred by such party.

 

		9.	Prorations.

 

(a)          General.
Subject to the following provisions of this Paragraph 9, rentals, revenues, and other income, if any, from the Property,
and real property taxes and operating expenses affecting the Property, which are customarily prorated by buyers and sellers of
real property located in the City and County of San Francisco, shall be prorated on an accrual basis as of midnight on the day
preceding the Close of Escrow. For purposes of calculating prorations, Buyer shall be deemed to be in title to the Property, and
therefore entitled to the income and responsible for the expenses, for the entire day upon which the Close of Escrow occurs.

 

(b)          Rent.

 

(i)          Rents.
With the sole exception of Percentage Rents, which shall be prorated in accordance with the terms of Paragraph 9(b)(ii)
below, all rents, license fees and other income and payments received from tenants under any and all Leases (collectively, “Rents”)
shall be apportioned on the basis of the period for which the same is payable and if, as and when collected, as follows: Buyer
shall apply all Rents received after the Close of Escrow in the following order of priority: (x) first, to payment of the current
Rents then due for the month in which the Close of Escrow occurs, which amount shall be apportioned between Buyer and Seller as
set forth in Paragraph 9(a) (with Seller’s portion thereof to be delivered to Seller); (y) second, to Rents applicable
to the period of time after the Close of Escrow, which amount shall be retained by Buyer; and (z) thereafter, to Rents applicable
to the period of time prior to the Close of Escrow but not collected by Seller as of the Close of Escrow (collectively, “Uncollected
Rents”), which amount shall be delivered to Seller. Buyer shall use reasonable efforts (which shall not include
any obligation to file suit or take enforcement action under the Lease), to collect Uncollected Rents. Seller shall have no right
to pursue the collection of Uncollected Rents. Any Rents received by Buyer shall be applied as provided above, and Buyer shall
remit to Seller any such sums received by Buyer to which Seller is entitled within five (5) Business Days after receipt thereof.
Buyer shall bill the tenants under the Leases for any Uncollected Rents and use its commercially reasonable efforts to collect
the same.

 

(ii)         Percentage
Rents. Percentage rent or overage rent (collectively, “Percentage Rents”) under the Leases shall
be prorated between Buyer and Seller on a lease by lease basis with Seller entitled to the portion of total Percentage Rent paid
under each Lease for the “Lease Year” in which the Close of Escrow occurs (the “Subject Lease Year”)
which is in the same ratio to total Percentage Rent paid with respect to such Subject Lease Year under the subject Lease as the
ratio of (i) the number of days of said Subject Lease Year which Seller was the landlord under the subject Lease to (ii) the total
number of days in said Subject Lease Year. Buyer shall be entitled to the balance of Percentage Rent paid under each Lease with
respect to the Subject Lease Year. As used herein, the term “Lease Year” means the twelve (12) month
period as to which annual Percentage Rent is owed under each Lease. The foregoing proration shall be made as follows on a lease
by lease basis: (i) subject to the balance of this Paragraph 9(b)(ii), Seller shall retain all Percentage Rent payments
received by it on and prior to the Close of Escrow and Buyer shall retain all Percentage Rent payments received by it after the
Close of Escrow; (ii) as promptly as possible after the date of the Close of Escrow, Seller shall deliver to Buyer a statement
of all Percentage Rent collected by Seller with respect to the Subject Lease Year, if any, on a lease by lease basis along with
a copy of the Percentage Rent invoices and sales reports which support such collections, (iii) for each Lease, not later than
forty-five (45) days after the date the last Percentage Rent payment with respect to the Subject Lease Year is due, Buyer shall
deliver to Seller a statement of all Percentage Rent owed, collected or deemed collectable by Buyer, along with a copy of the
annual reconciliation of Percentage Rent owed for the Subject Lease Year and the related sales information backup; and, (iv) for
each Lease, within fifteen (15) days after the date the statement and reconciliation described in clause (iii) above is delivered
to Seller, Buyer shall pay to Seller or Seller shall pay to Buyer, whichever is applicable, the positive difference, if any, between
(a) the total Percentage Rental collected by such party with respect to such Lease for the Subject Lease Year and (b) the product
of (y) the average daily Percentage Rental received with respect to such Lease for the Subject Lease Year after taking into account
the annual reconciliation and (z) the actual number of days such party was the owner of the Property during the Subject Lease
Year. If Percentage Rent is thereafter collected by Buyer from delinquent tenants, Buyer shall promptly pay to Seller a portion
thereof which is equal to the ratio of (i) the number of days of the Subject Lease Year in which Seller was the landlord, to (ii)
the total number of days in the Subject Lease Year.

 

    	 	8	 

     

    

 

(c)          Reimbursable
Tenant Expenses. Prior to the Close of Escrow, the parties shall reasonably estimate the Reimbursable Tenant Expenses
due to Seller for expenses actually incurred by Seller during the portion of the calendar year preceding the date upon which the
Close of Escrow occurs (“Seller’s Estimated Reimbursable Tenant Expenses”). If, prior to the Close
of Escrow, Seller has collected more payments for estimated Reimbursable Tenant Expenses for the year in which the Close of Escrow
occurs from tenants of the Real Property than Seller’s Estimated Reimbursable Tenant Expenses, then, Buyer shall receive
a credit at the Close of Escrow in the amount of such excess. However, if, prior to the Closing Date, Seller has collected less
payments for Reimbursable Tenant Expenses for the year in which the Close of Escrow occurs than Seller’s Estimated Reimbursable
Tenant Expenses, then, Buyer shall use its reasonable efforts to collect the same from the tenants on and subject to the terms
of their respective Leases (which shall not include any obligation to file suit or take enforcement action under the Lease) and,
as and when the amount of such underpayment is received from the tenants and payable to Seller pursuant to the terms of Paragraph
9(b)(i), such amount shall be paid to Seller in reimbursement for such underpayment. Seller shall have no right to collect
any such amounts from the tenants under the Leases. As used herein, the term “Reimbursable Tenant Expenses”
shall mean payments required to be paid by tenants under Leases for such tenant’s share of ad valorem taxes, insurance,
common area maintenance and/or other operating expenses of the Property.

 

(d)          Taxes
and Assessments. All non-delinquent real estate taxes, personal property taxes and current installments of assessments
affecting the Property which are payable by Seller shall be prorated as of the Close of Escrow based on the actual current tax
bill, or if such tax bill is not available, the latest available tax information for the tax year in which the Closing occurs
(“Current Tax Year”) (with Seller and Buyer each being responsible for a pro rata share of such taxes
and assessments based upon the number of days in the Current Tax Year occurring before the Closing Date, in the case of Seller,
and on and after the Closing Date, in the case of Buyer); provided, however, Seller shall not be liable for any supplemental or
escape taxes or assessments arising from the transfer of the Property pursuant to this Agreement or any other events triggering
reassessment occurring on or after the Close of Escrow. All delinquent taxes and assessments, if any, affecting the Property which
are payable by Seller shall be paid at the Close of Escrow from funds accruing to Seller. Any refunds of real estate taxes and
assessments attributable to the period prior to the Close of Escrow shall, subject to the rights of tenants, be paid to Seller
upon receipt, whether such receipt occurs before or after the Close of Escrow.

 

(e)          Operating
Expenses. All utility service charges for electricity, heat and air conditioning service and other utilities, charges
for elevator maintenance and common area maintenance, taxes (other than real estate taxes and income taxes) such as rental taxes,
expenses and obligations under any Binding Contracts, and other expenses affecting the Property which are payable by Seller and
any other costs incurred in the ordinary course of business or the management and operation of the Property, which are customarily
prorated by buyers and sellers of real property located in the City and County of San Francisco, shall be prorated on an accrual
basis. Seller shall pay all such expenses that accrue prior to the Close of Escrow and Buyer shall pay all such expenses accruing
on the Close of Escrow and thereafter. To the extent possible, Seller and Buyer shall obtain billings and meter readings as of
the Close of Escrow to aid in such prorations. To the greatest extent possible, utility service charges shall be prorated based
upon the actual charges accrued before and after the Close of Escrow, rather than upon an average daily charge.

 

(f)          Leasing
Expenses. Seller agrees to pay or discharge at or prior to the Close of Escrow, or to provide a credit to Buyer upon the
Close of Escrow for, all brokerage commissions, tenant improvement allowances and free or abated rent (collectively, “Lease
Inducement Costs”) that are payable with respect to Leases in force as of or prior to the Close of Escrow; provided,
however, that Seller shall have no obligation to pay, as of the Close of Escrow Buyer shall be deemed to have assumed the obligation
to pay, and from and after the Close of Escrow Buyer shall indemnify, defend and hold Seller harmless from and against, (i) any
and all Lease Inducement Costs payable with respect to any option to renew or option to expand that has not been exercised as
of or prior to the Close of Escrow, and (ii) any and all Lease Inducement Costs incurred with respect to Leases and renewals,
extensions, amendments and terminations thereof executed subsequent to the Close of Escrow. Buyer shall indemnify, defend and
hold Seller harmless from and against any and all Lease Inducement Costs as to which Seller provides Buyer a credit upon the Close
of Escrow.

 

    	 	9	 

     

    

 

(g)          Security
Deposits. At the Close of Escrow, Seller shall, at Seller’s option, either deliver to Buyer any security deposits
held by Seller pursuant to any and all Leases or credit to the account of Buyer the amount of such security deposits (to the extent
such security deposits have not been applied against delinquent rentals or otherwise as provided in the Leases). If any security
deposits shall be held by Seller in the form of letters of credit, Seller shall, upon the Close of Escrow, assign such letters
of credit to Buyer.

 

(h)          Method
of Proration. Seller shall prepare and deliver to Buyer a schedule of the prorations set forth herein at least three (3)
Business Days prior to the Closing Date, which schedule shall be subject to the reasonable approval of Buyer. Such prorations
shall be paid by Buyer to Seller (if the prorations result in a net credit to the Seller) or by Seller to Buyer (if the prorations
result in a net credit to the Buyer) by increasing or reducing the cash to be paid by Buyer at the Close of Escrow. A copy of
the schedule of prorations as agreed upon by Buyer and Seller shall be delivered to Escrow Holder prior to the Close of Escrow.
Ninety (90) days after the Close of Escrow, Seller and Buyer shall agree to any reprorations based on additional information learned
about the prorations after the Close of Escrow, which reproration shall be final.

 

(i)          Survival.
The provisions of this Paragraph 9 shall survive the Close of Escrow.

 

10.         Disbursements
and Other Actions by Escrow Holder. Upon the Close of Escrow, Escrow Holder shall promptly undertake all of the following
in the manner hereinbelow indicated:

 

(a)          Funds.
Disburse all funds deposited with Escrow Holder by Buyer in payment of the Purchase Price as follows:

 

(i)          Deduct
all items chargeable to the account of Seller pursuant to Paragraph 8.

 

(ii)         If,
as the result of the prorations and credits pursuant to Paragraph 9, amounts are to be charged to the account of Seller,
deduct the total amount of such charges.

 

(iii)        Disburse
the remaining balance of the funds to Seller promptly upon the Close of Escrow in accordance with Seller’s wire transfer
instructions.

 

(b)          Recording.
Cause the Deed, and any other documents which the parties hereto may mutually direct to be recorded, to be recorded in the Official
Records of San Francisco County and obtain conformed copies thereof for distribution to Buyer and Seller.

 

(c)          Title
Policy. Direct the Title Company to issue the Title Policy to Buyer, without reservation for any “gap” between
Close of Escrow and the recordation of the Deed.

 

(d)          Disbursement
of Documents to Buyer. Disburse to Buyer fully executed originals of the Bill of Sale, the General Assignment, and any
other documents (or copies thereof) deposited into Escrow by Seller pursuant hereto.

 

(e)          Disbursement
of Documents to Seller. Disburse to Seller a fully executed original of the General Assignment, and any other documents
(or copies thereof) deposited into Escrow by Buyer pursuant hereto.

 

11.         AS-IS
Sale and Purchase; Release. Buyer acknowledges that the provisions of this Paragraph 11 have been required by Seller
as a material inducement to enter into the contemplated transactions, and the intent and effect of such provisions have been explained
to Buyer by Buyer’s counsel and have been understood and agreed to by Buyer.

 

    	 	10	 

     

    

 

(a)          Buyer’s
Acknowledgment. As a material inducement to Seller to enter into this Agreement and to convey the Property to Buyer, Buyer
hereby acknowledges and agrees as follows:

 

(i)          AS
IS. Buyer is purchasing the Property in its existing condition, “AS-IS, WHERE-IS, WITH ALL FAULTS”, and will,
by the Contingency Date, have made or have waived all inspections and investigations of the Property and its vicinity which Buyer
believes are necessary to protect its own interest in, and its contemplated use of, the Property.

 

(ii)         No
Representations. Other than the express representations and warranties of Seller contained in Paragraph 12, neither
Seller, its members or managers, nor any person or entity acting by or on behalf of Seller, or any member, manager, partner, shareholder,
officer, director, trustor, trustee, beneficiary, employee, agent, affiliate, successor or assign of any of the foregoing has
made any representation, warranty, inducement, promise, agreement, assurance or statement, oral or written, of any kind to Buyer
upon which Buyer is relying, or in connection with which Buyer has made or will make any decisions concerning the Property or
its vicinity including, without limitation, its use, condition, value, compliance with Governmental Regulations, status of any
Binding Contracts and Leases, amounts of money owed to or owed by Seller, disputes with third parties, existence or absence of
Hazardous Materials, the status of the construction of tenant improvements, whether completed or in progress, or the permissibility,
feasibility, or convertibility of all or any portion of the Property for any particular use or purpose, including without limitation
its present or future prospects for sale, lease, development, occupancy or suitability as security for financing. As used herein,
the term “Governmental Regulations” means any laws, ordinances, rules, requirements, resolutions, policy
statements and regulations (including, without limitation, those relating to land use, subdivision, zoning, Hazardous Materials,
occupational health and safety, handicapped access, water, earthquake hazard reduction, and building and fire codes) of any governmental
or quasi-governmental body or agency claiming jurisdiction over the Property. As used herein, the term “Hazardous
Materials” means any hazardous or toxic substance, material or waste which is now or hereafter the subject of Governmental
Regulations, including without limitation any material or substance which is (A) defined as a “hazardous waste,” “extremely
hazardous waste” or “restricted hazardous waste” under Section 25115, 25117 or 25122.7, or listed pursuant to
Section 25140, or the California Health and Safety Code, Division 20, Chapter 6.5 (Hazardous Waste Control Law), (B) defined as
a “hazardous substance” under Section 25316 of the California Health and Safety Code, Division 20, Chapter 6.8 (Carpenter-Presley-Tanner
Hazardous Substance Account Act), (C) defined as a “hazardous material,” “hazardous substance,” or “hazardous
waste” under Section 25501 of the California Health and Safety Code, Division 20, Chapter 6.7 (Underground Storage of Hazardous
Substances), (D) petroleum and other hydrocarbons, (E) asbestos, (F) listed under Article 9 or defined as hazardous or extremely
hazardous pursuant to Article 11 of Title 22 of California Administrative Code, Division 4, Chapter 20, (G) designated as a “hazardous
substance” pursuant to Section 311 of the Federal Water Pollution Control Act 33 U.S.C. § 1251 et. seq., (33 U.S.C.
§ 1321) or as listed pursuant to § 307 of the Federal Water Pollution Control Act (33 U.S.C. § 1317), (H) defined
as a “hazardous waste” pursuant to Section 1004 of the Federal Resource Conservation and Recovery Act, 42 U.S.C. §
6901 et seq. (42 U.S.C. § 9601), (I) defined as a “hazardous substance” pursuant to Section 101 of the Comprehensive
Environmental Response, Compensation and Liability Act of 1980, as amended, 42 U.S.C. § 9601 et seq., or (J) associated with
the so-called “sick building syndrome.”

 

(iii)        No
Implied Warranties. SELLER HEREBY DISCLAIMS ALL WARRANTIES IMPLIED BY LAW ARISING OUT OF OR WITH RESPECT TO THE EXECUTION
OF THIS AGREEMENT, ANY ASPECT OR ELEMENT OF THE PROPERTY, OR THE PERFORMANCE OF SELLER’S OBLIGATIONS HEREUNDER INCLUDING,
WITHOUT LIMITATION, ALL IMPLIED WARRANTIES OF MERCHANTABILITY AND/OR FITNESS FOR A PARTICULAR PURPOSE.

 

(iv)        Information
Supplied by Seller. Buyer specifically acknowledges and agrees that, except as may otherwise be expressly provided in
Paragraph 12, Seller has made, is making, and shall make, no representation or warranty of any nature concerning the accuracy
or completeness of Seller’s Documents, or the authenticity, source, accuracy or completeness of any information contained
in such Seller’s Documents or any other documents previously or hereafter furnished by or on behalf of Seller to Buyer,
including without limitation any Binding Contracts, the Leases, and various studies, inspections, reports and exhibits and correspondence
relating thereto. Buyer further acknowledges that Seller has not reviewed and is under no obligation to review any files in Seller’s
possession or which may be available to Seller. As to certain of the materials made available to Buyer in Seller’s Documents,
Buyer specifically acknowledges that they have been prepared by third parties with whom Buyer has no privity and Buyer acknowledges
and agrees that no warranty or representation, express or implied, has been made, nor shall any be deemed to have been made, to
Buyer with respect thereto, either by Seller or by any third parties that prepared the same. Buyer waives any claim of any nature
against anyone should any information, conclusion, projection, or other statement of any nature contained in any of such materials
prove not to be true or accurate for any reason.

 

    	 	11	 

     

    

 

(v)         Negotiated
Purchase Price. Buyer represents and warrants to Seller that Buyer is specifically familiar with the Property and that
Buyer has inspected and examined, or will have had the opportunity to inspect and examine, all aspects of the Property and its
current condition that Buyer believes to be relevant to its decision to purchase the Property. Buyer further acknowledges and
agrees that the Purchase Price negotiated by Seller and Buyer reflects the known and unknown risks and liabilities assumed by
Buyer under the Agreement, Seller’s unwillingness to conduct any investigation or due diligence with respect to the Property
on behalf of Buyer, and Seller’s desire to receive an absolutely net, fixed amount as consideration for the sale of the
Property regardless of any facts known or discovered before or following the Close of Escrow which might result in a diminution
in value of the Property.

 

(vi)        Buyer’s
Investigation of Property. Prior to the Contingency Date, Buyer will have had the opportunity to investigate all physical
and economic aspects of the Property and to make all inspections and investigations of the Property which Buyer deems necessary
or desirable to protect its interests in acquiring the Property, including, without limitation, review of the Leases (and the
rights of the tenants thereunder), building permits, certificates of occupancy, environmental audits and assessments, toxic reports,
surveys, investigation of land use and development rights, development restrictions and conditions that are or may be imposed
by governmental agencies, agreements with associations affecting or concerning the Property, the condition of title, soils and
geological reports, engineering and structural tests, insurance contracts, contracts for work in progress, marketing studies,
cost-to-complete studies, governmental agreements and approvals, architectural plans and site plans, and that all matters concerning
the Property have been or shall be independently verified by Buyer prior to the Contingency Date, and that, except for the express
representations and warranties of Seller set forth in this Agreement, Buyer shall purchase the Property on Buyer’s own knowledge
of the Property and Buyer’s prior investigation and examination of the Property (or Buyer’s election not to do so).
Notwithstanding anything to the contrary herein, Buyer and Seller acknowledge that any written disclosures made by Seller prior
to the Close of Escrow shall constitute notice to Buyer of the matter disclosed, and Seller shall have no further liability thereafter
if Buyer thereafter consummates the transaction contemplated hereby. Buyer agrees that it shall make an independent investigation
of the matters set forth in any such disclosures as well as all other matters relating to the Property and shall not rely on any
specific information or any other materials provided by Seller, except for the express representations and warranties of Seller
set forth in Paragraph 12.

 

(vii)       Natural
Hazard Disclosure Statement. Seller has made a property disclosure report (the “Disclosure Report”)
available to Buyer prior to the Effective Date. The Disclosure Report fully and completely discharges Seller from its disclosure
obligations, if any, which may be required under the Natural Hazard Disclosure Act, California Government Code Sections 8589.3,
8589.4, and 51183.5, California Public Resources Code Sections 2621.9, 2694, and 4136, and California Civil Code Sections 1102.6
and 1103.2, and any successor law, and, for the purposes of this Agreement, the provisions of Civil Code Section 1102.4 regarding
the non-liability of Seller for errors and/or omissions not within its personal knowledge shall be deemed to apply and the preparer
of the Disclosure Report shall be deemed to be an expert, dealing with matters within the scope of its expertise with respect
to the examination and Disclosure Report. Nothing set forth in the Disclosure Report shall (A) require Seller to remediate any
matter referred to in the Disclosure Report or (B) create any liability by Seller to Buyer therefor and Seller shall in no event
be required to expend funds to remediate any matters disclosed in the Disclosure Report. Notwithstanding Buyer’s receipt
and review of the Disclosure Report, Buyer hereby knowingly, voluntarily and intentionally waives its right to disclosure by Seller
of natural hazards found in Natural Hazard Disclosure Act, California Government Code Sections 8589.3, 8589.4, and 51183.5, California
Public Resources Code Sections 2621.9, 2694, and 4136, and California Civil Code Sections 1102.6 and 1103.2, and any similar or
successor law. Buyer represents and warrants that it has obtained the Disclosure Report from an expert satisfying the requirements
of California Civil Code Section 1103.4, and has waived any objection to such Disclosure Report. Buyer acknowledges and agrees
that the matters set forth in the Disclosure Report may change on or prior to the Close of Escrow and that Seller has no obligation
to update, modify, or supplement the Disclosure Report. Following the Close of Escrow, Buyer shall be solely responsible for preparing
and delivering its own disclosure report to any subsequent prospective buyers of the Property.

 

    	 	12	 

     

    

 

(b)          Release.
In consideration of the foregoing, Buyer hereby releases Seller and its direct and indirect members, managers, partners, officers,
directors, shareholders, trustors, trustees, beneficiaries, agents, affiliates, employees and successors and assigns from and
against any and all complaints, claims, charges, claims for relief, demands, suits, actions and causes of action, whether in law
or in equity, which Buyer asserts or could assert at common law or under any statute, rule, regulation, order or law, whether
federal, state or local, on any ground whatsoever, whether or not known, suspected, liquidated, contingent or matured, with respect
to any event, matter, claim, occurrence, damages or injury (collectively, “Claims”), to the extent arising
out of or in connection with the Property. Buyer agrees that there is a risk that subsequent to the execution of this Agreement,
Buyer will suffer losses, damages or injuries which are unknown and unanticipated at the time this Agreement is signed. Buyer
hereby assumes such risk and agrees that the release contained in this Paragraph 11(b) SHALL APPLY TO ALL UNKNOWN OR UNANTICIPATED
CLAIMS, AS WELL AS THOSE KNOWN AND ANTICIPATED, AND BUYER DOES HEREBY WAIVE ANY AND ALL RIGHTS UNDER CALIFORNIA CIVIL CODE SEC.
1542, WHICH SECTION HAS BEEN DULY EXPLAINED AND READS AS FOLLOWS:

 

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

 

____________

Buyer’s Initials

 

The foregoing release shall be effective
as of the Effective Date and shall be deemed to be remade and reaffirmed as of the Contingency Date and as of the Close of Escrow.
Notwithstanding anything stated to the contrary in this Agreement, the foregoing release shall not extend to (and shall expressly
exclude) claims arising from (i) Seller’s intentional fraud, (ii) Seller’s breach of its express representations, warranties,
covenants and obligations (including indemnity obligations) under this Agreement and the documents executed by Seller upon the
Close of Escrow or (iii) any third party breach of contract claims (with respect to contracts to which Seller is a party, but only
to the extent of any obligations and liabilities thereunder that were not expressly assumed by Buyer) or third party tort claims
brought against Buyer for personal injury, wrongful death or personal property damage, in each case arising out of events occurring
during Seller’s ownership of the Property (provided that, in no event will Seller be required to repair or remediate, or
pay for the repair or remediation of, physical or environmental conditions on the Property after Close of Escrow). The provisions
of this Paragraph 11 shall survive the Close of Escrow.

 

12.         Seller’s
Representations and Warranties. Subject to those matters described in Exhibit "J" attached hereto (the
“Disclosure Items"), as to which Seller makes no representations or warranties of any kind and for which
Seller shall have no liability or obligation to Buyer of any kind whatsoever, Seller hereby makes the following representations
and warranties to Buyer (all of which, to the extent applicable, are qualified by the Disclosure Items):

 

(a)          Status.
Seller is a limited liability company duly organized or formed, validly existing and in good standing under the laws of the State
of Delaware and is qualified to transact business in the State of California.

 

(b)          Due
Authority. The execution and delivery of this Agreement and the performance of Seller's obligations hereunder have been
or will be duly authorized by all necessary action on the part of Seller, and this Agreement constitutes the legal, valid and
binding obligation of Seller, subject to equitable principles and principles governing creditors' rights generally.

 

(c)          OFAC
Compliance. Neither Seller, nor, to Seller’s actual knowledge, any person or entity who owns an interest in Seller,
is a person or entity with whom Buyer is restricted from doing business under the Uniting and Strengthening America by Providing
Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, H.R. 3162, Public Law 107-56 (commonly known as the
“USA Patriot Act” or Executive Order Number 13224 on Terrorism Financing, effective September 24, 2001 and regulations
promulgated pursuant thereto (collectively, “Anti Terrorism Laws”), including without limitation any persons named
on the U.S. Department of the Treasury’s Office of Foreign Asset Control (“OFAC”) Specially Designated Nationals
and Blocked Persons List.

 

    	 	13	 

     

    

 

(d)          Bankruptcy.
Seller has not (i) made a general assignment for the benefit of creditors, (ii) filed any voluntary petition in bankruptcy or
suffered the filing of any involuntary petition by Seller’s creditors against it, (iii) suffered the appointment of a receiver
to take possession of all, or substantially all, of Seller’s assets, which remains pending, or (iv) suffered the attachment
or other judicial seizure of all, or substantially all, of Seller’s assets, which remains pending.

 

(e)          Leases.
The Leases in effect as of the Effective Date are identified on Exhibit “K” attached hereto. Seller has provided
Buyer with true, correct and complete copies of the Leases, including all amendments thereto. As of the Effective Date, Seller
has not received any written notice from any tenant of any uncured default by Seller, as lessor under the Leases. Except as may
be disclosed in any estoppel certificate delivered to Buyer pursuant to this Agreement, to Seller’s actual knowledge, as
of the Effective Date, there are no uncured material defaults under the Leases.

 

(f)          Litigation
and Condemnation. To Seller’s actual knowledge, (i) there is no litigation pending or threatened against Seller
with respect to the Property and (ii) as of the Effective Date, no condemnation or eminent domain proceedings are pending or contemplated
against the Property.

 

(g)          Notices.
To Seller’s actual knowledge, Seller has received no written notice from any governmental entity that the Property, or the
operation or use of the same, does not comply with any law (including any environmental law), ordinance or regulation in any material
respect, which failure of compliance has not been cured.

 

(h)          Seller
Not a Foreign Person. Seller is not a "foreign person" within the meaning of Section 1445(f)(3) of the Internal
Revenue Code of 1986, as amended.

 

Seller’s representations
and warranties set forth in this Paragraph 12 shall survive the Close of Escrow for a period of six (6) months subject to
the limitations of Paragraph 18(a).

 

Anything herein to the
contrary notwithstanding, but subject to Seller’s obligation to reimburse Buyer for its reasonable out-of-pocket expenses
in accordance to the terms and conditions of Paragraph 18(a), if Buyer becomes aware of any information prior to the Close
of Escrow which renders any of the above representations and warranties of Seller inaccurate or incomplete, such representations
and warranties shall be deemed modified to reflect the disclosure of such information (except for purposes of Paragraph 5(a)(i)).
Whenever the phrase “to Seller’s actual knowledge” is used in this Agreement, such phrase shall mean and refer
to the present actual knowledge, without taking into account any constructive or imputed knowledge, of Craig Hamburg, the individual
within Seller’s organization with the most knowledge of the matters contained herein, without any duty of inquiry or investigation.
Buyer acknowledges that the individual named above is named solely for the purpose of defining and narrowing the scope of Seller's
knowledge and not for the purpose of imposing any liability on or creating any duties running from such individual to Buyer. Buyer
covenants that it will bring no action of any kind against such individual arising out of these representations and warranties.

 

13.         Buyer’s
Representations and Warranties. Buyer hereby makes the following representations and warranties to Seller:

 

(a)          Status.
Buyer is a limited liability company duly organized, validly existing and in good standing under the laws of the State of Delaware
and is, or will be as of the Closing Date, qualified to transact business in the State of California.

 

(b)          Due
Authority. The execution and delivery of this Agreement and the performance of Buyer’s obligations hereunder have
been or will be duly authorized by all necessary action on the part of Buyer, and this Agreement constitutes the legal, valid
and binding obligation of Buyer, subject to equitable principles and principles governing creditors' rights generally.

 

    	 	14	 

     

    

 

(c)          OFAC
Compliance. Neither Buyer, nor any person or entity who owns an interest in Buyer (excluding interests held in publicly
traded entities), is a person or entity with whom Seller is restricted from doing business under the Uniting and Strengthening
America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, H.R. 3162, Public Law 107-56
(commonly known as the “USA Patriot Act” or Executive Order Number 13224 on Terrorism Financing, effective September
24, 2001 and regulations promulgated pursuant thereto (collectively, “Anti Terrorism Laws”), including without limitation
any persons named on the U.S. Department of the Treasury’s Office of Foreign Asset Control (“OFAC”) Specially
Designated Nationals and Blocked Persons List.

 

(d)          Bankruptcy.
Buyer has not (i) made a general assignment for the benefit of creditors, (ii) filed any voluntary petition in bankruptcy or suffered
the filing of any involuntary petition by Buyer’s creditors against it, (iii) suffered the appointment of a receiver to
take possession of all, or substantially all, of Buyer’s assets, which remains pending, or (iv) suffered the attachment
or other judicial seizure of all, or substantially all, of Buyer’s assets, which remains pending.

 

(e)          Principal.
Buyer has executed this Agreement as a principal on its own behalf and not as an agent of undisclosed third parties.

 

The provisions
of this Paragraph 13 shall survive the Close of Escrow.

 

Whenever the phrase “to
Buyer’s actual knowledge” is used in this Agreement, such phrase shall mean and refer to the present actual knowledge,
without taking into account any constructive or imputed knowledge, of Alan Shapiro, without any duty of inquiry or investigation.
Seller acknowledges that the individual named above is named solely for the purpose of defining and narrowing the scope of Buyer's
knowledge and not for the purpose of imposing any liability on or creating any duties running from such individual to Seller. Seller
covenants that it will bring no action of any kind against such individual arising out of these representations and warranties.

 

14.         Seller
Covenants. Following the execution of this Agreement and through the Close of Escrow, subject to the occurrence of any
casualty or condemnation, Seller covenants to own, operate and maintain its interests in the items comprising the Property in
substantially the same manner as presently owned, operated and maintained. In addition, Seller agrees not to enter into any new
Lease or contract (but only to the extent that Buyer is required to assume such contract upon the Close of Escrow or such contract
will encumber the Real Property from and after the Close of Escrow (each, a “Binding Contract”)) or
materially amend or terminate any existing Lease or Binding Contract (except to the extent required to do so under the terms of
such existing Lease or Binding Contract or in connection with the enforcement of such Lease or Binding Contract), without obtaining
the prior written consent of Buyer, provided that Buyer’s consent shall not be unreasonably withheld or conditioned. In
the event that Buyer fails to grant such consent (or notify Seller of its decision to withhold such consent) within three (3)
Business Days following its receipt of such request, Buyer shall be deemed to have granted such consent.

 

		15.	Casualty and Condemnation.

 

(a)          Casualty.
If prior to Close of Escrow the Real Property is damaged by fire or other casualty, Seller shall (i) reasonably estimate the cost
to repair, (ii) gather all information then available, which is reasonably necessary to determine whether the damage is Material
Damage and (iii) provide Buyer with written notice of the repair cost estimate and the Material Damage determination (the “Casualty
Notice”) as soon as reasonably possible after the occurrence of the casualty.

 

    	 	15	 

     

    

 

(i)          Material.
In the event of any Material Damage to or destruction of the Real Property or any portion thereof prior to Close of Escrow, Buyer
may, at its option, terminate this Agreement by delivering written notice to Seller on or before the expiration of ten (10) Business
Days after the date Seller delivers the Casualty Notice to Buyer (and if necessary, the Closing Date shall be extended to give
the parties the full ten (10) Business Day period to make such election and to obtain full information regarding any applicable
insurance policies). Upon any such termination, the Escrow shall be canceled, this Agreement shall be terminated and become null
and void, all parties hereto shall be released from further performance of this Agreement (with the exception of those provisions
or paragraphs which recite that they survive termination of this Agreement), and Escrow Holder shall return to Buyer all or any
portion of the Deposit deposited with Escrow Holder and shall return to each party any and all documents which such party had
deposited with it. If Buyer does not so terminate this Agreement within said ten (10) Business Day period, then the parties shall
proceed under this Agreement and close on schedule (subject to extension of the Closing Date as provided above), and as of Close
of Escrow Seller shall assign to Buyer, without representation or warranty by or recourse against Seller, all of Seller’s
rights (if any) in and to any resulting insurance proceeds (and Buyer shall receive a credit at the Close of Escrow in an amount
equal to any applicable deductible under any applicable Seller property insurance policy) (excluding any rent loss insurance applicable
to any period prior to the Closing Date) due Seller (or previously paid to Seller) as a result of such damage or destruction (less
any portion thereof expended by Seller in connection with repairs to the Property) and, as between Seller and Buyer, Buyer shall
assume full responsibility for all needed repairs. For purposes of this Agreement, “Material Damage”
and “Materially Damaged” mean damage which (A) will cost in excess of an amount equal to $50,000 to
repair or (B) permits termination of any Lease by the tenant thereunder or (C) permits the tenant under any Lease to abate its
rent under such Lease for a period of six (6) months or longer after the Close of Escrow.

 

(ii)         Not
Material. If the Real Property is not Materially Damaged, then Buyer shall not have the right to terminate this Agreement,
and Seller shall assign to Buyer, without representation or warranty by or recourse against Seller, all of Seller’s rights
(if any) in and to any resulting insurance proceeds (and Buyer shall receive a credit at the Close of Escrow in an amount equal
to any applicable deductible under any applicable Seller property insurance policy) (excluding any rent loss insurance applicable
to any period prior to the Closing Date) due Seller (or previously paid to Seller) as a result of such damage or destruction (less
any portion thereof expended by Seller in connection with repairs to the Property) and, as between Seller and Buyer, Buyer shall
assume full responsibility for all needed repairs.

 

(b)          Condemnation.
If, at any time prior to the Close of Escrow, legal proceedings under power of eminent domain are commenced with respect to all
or any portion of the Real Property, then by delivery to Seller of written notice of election within ten (10) Business Days after
receipt of written notice of such pending condemnation, Buyer may elect to either (i) terminate this Agreement, or (ii) elect
to continue this Agreement in full force and effect, in which event, as of the Close of Escrow, Seller shall assign to Buyer,
without representation or warranty by or recourse against Seller, all of Seller’s rights in and to any resulting proceeds
and/or claims due Seller (or previously paid to Seller) on account of such condemnation proceedings, and Buyer shall take title
to the Property subject to such condemnation proceedings. If Buyer fails to deliver written notice to Seller of Buyer’s
election within the time period specified in this Paragraph, Buyer shall be deemed to have elected alternative (ii) above.
If Buyer properly delivers written notice to Seller within the time period specified in this Paragraph electing alternative
(i) above, the Escrow shall be canceled, this Agreement shall be terminated and become null and void, all parties hereto shall
be released from further performance of this Agreement (with the exception of those provisions or paragraphs which recite that
they survive termination of this Agreement), and Escrow Holder shall return to Buyer all or any portion of the Deposit deposited
with Escrow Holder and shall return to each party any and all documents which such party had deposited with it.

 

16.         Notices.
All notices, requests and demands to be made hereunder to the parties hereto shall be in writing and shall be deemed received
upon (i) delivery of email on a Business Day between the hours of 9:00 a.m. and 5:00 p.m. the recipient’s time (otherwise,
the next following Business Day) (provided that such email contains in all uppercase letters the words “OFFICIAL NOTICE”
in the subject line and generates no server-generated response that such delivery was ineffective or delayed), provided that such
notice is also simultaneously delivered by one of the methods set forth in clauses (ii) through (v), inclusive; (ii) personal
delivery; (iii) confirmed telecopy delivery on a Business Day between the hours of 9:00 a.m. and 5:00 p.m. the recipient’s
time (otherwise, the next following Business Day); (iv) one (1) Business Day after being deposited with Federal Express, DHL Worldwide
Express or another reliable overnight courier service prior to the specified delivery deadline for next day service, specifying
an address to which such courier makes overnight deliveries; or (v) three (3) Business Days after being deposited in the United
States mail, registered or certified mail, postage prepaid, return receipt required, addressed to the applicable party at the
addresses set forth below:

 

	 	To Seller:	Octavia Gateway Holdings, LLC
	 	 	c/o DDG Partners LLC
	 	 	60 Hudson Street, 18th Floor
	 	 	New York, New York 10013
	 	 	Attention:  William M. Kluczkowski
	 	 	Email: wmk@ddgpartners.com
	 	 	Telephone:  (212) 612-3248
	 	 	Facsimile: (212) 612-3260

 

    	 	16	 

     

    

 

	 	and:	Octavia Gateway Holdings, LLC
	 	 	c/o DM Development
	 	 	448 Linden Street
	 	 	San Francisco, California  94102
	 	 	Attention:  Mark MacDonald
	 	 	Email: mark.macdonald@dm-dev.com
	 	 	Telephone:  (415) 692-5062
	 	 	Facsimile: (415) 693-4454
	 	 	 
	 	with a copy to:	Cox, Castle & Nicholson LLP
	 	 	50 California Street, Suite 3200
	 	 	San Francisco, California 94111
	 	 	Attention:  Kevin J. Crabtree
	 	 	Email: kcrabtree@coxcastle.com
	 	 	Telephone:  (415) 262-5155
	 	 	Facsimile:  (415) 262-5199
	 	 	 
	 	To Buyer:	SRT SF Retail I, LLC
	 	 	c/o Glenborough LLC
	 	 	400 South El Camino, 11th Floor
	 	 	San Mateo, CA 94402-1708
	 	 	Attention:  Alan Shapiro
	 	 	Email: alan.shapiro@glenborough.com
	 	 	Telephone:  (650) 343-9300
	 	 	Facsimile:   (650) 343-9690
	 	 	 
	 	with a copy to:	SRT SF Retail I, LLC
	 	 	c/o Glenborough LLC
	 	 	400 South El Camino, 11th Floor
	 	 	San Mateo, CA 94402-1708
	 	 	Attention:  G. Lee Burns, Jr.
	 	 	Email: chip.burns@glenborough.com
	 	 	Telephone:  (650) 343-9300
	 	 	Facsimile:   (650) 343-9690
	 	 	 
	 	To Escrow Holder:	First American Title Insurance Company
	 	 	National Commercial Services
	 	 	101 Mission Street, Suite 1600
	 	 	San Francisco, California 94105
	 	 	Attention:  Heather Kucala
	 	 	Email:  hkucala@firstam.com
	 	 	Telephone:  (415) 837-2295
	 	 	Facsimile:  (714) 481-2576
	 	 	Escrow No. NCS-787084

 

Notice of change of
address shall be given by written notice in the manner detailed in this Paragraph 16. Notice given by counsel for a party
shall be deemed to be notice given by such party and shall be effective when delivered to the other party as provided above, or
when delivered to counsel for the other party, with a copy to the other party identified above.

 

17.         Commissions.
If the Close of Escrow occurs, Seller shall pay a broker’s commission directly to, Retail West Inc. (“Broker”)
pursuant to a separate agreement with Broker. In the event of any claims for additional advisor’s, brokers’ or finders’
fees or commissions in connection with the negotiation, execution or consummation of this Agreement, then as a covenant which
shall survive the termination of this Agreement or the Close of Escrow, Buyer shall indemnify, save harmless and defend Seller
from and against such claims if they shall be based upon any statement or representation or agreement by Buyer, and Seller shall
indemnify, save harmless and defend Buyer if such claims shall be based upon any statement, representation or agreement made by
Seller.

 

    	 	17	 

     

    

 

		18.	Legal and Equitable Enforcement of this Agreement.

 

(a)          Default
by Seller. IN THE EVENT THE CLOSE OF ESCROW DOES NOT OCCUR BY REASON OF ANY DEFAULT BY SELLER (OR ANY DEFAULT BY EITHER
OF THE OTHER SELLERS UNDER THE OTHER PURCHASE AGREEMENTS), BUYER SHALL BE ENTITLED, AS ITS SOLE AND EXCLUSIVE REMEDY (BUT WITHOUT
LIMITING THE AVAILABLE REMEDIES OF BUYER UNDER THE OTHER PURCHASE AGREEMENTS), TO EITHER (1) TERMINATE THIS AGREEMENT AND RECEIVE
A REFUND OF THE DEPOSIT AND SELLER SHALL REIMBURSE BUYER FOR ITS REASONABLE OUT-OF-POCKET EXPENSES INCURRED IN CONNECTION WITH
THIS AGREEMENT IN AN AMOUNT NOT TO EXCEED THIRTY THOUSAND DOLLARS ($30,000), OR (2) BRING AN ACTION FOR SPECIFIC PERFORMANCE.
IF BUYER FAILS TO BRING AN ACTION FOR SPECIFIC PERFORMANCE WITHIN THIRTY (30) DAYS FOLLOWING THE CLOSING DATE, BUYER SHALL BE
DEEMED TO HAVE ELECTED TO TERMINATE THIS AGREEMENT AND RECEIVE A REFUND OF THE DEPOSIT AND SUCH OUT-OF-POCKET EXPENSE REIMBURSEMENT.
NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN THIS AGREEMENT OR IN ANY EXHIBITS ATTACHED HERETO OR IN ANY DOCUMENTS EXECUTED
OR TO BE EXECUTED IN CONNECTION HEREWITH (COLLECTIVELY, INCLUDING THIS AGREEMENT, SAID EXHIBITS AND ALL SUCH DOCUMENTS, THE “PURCHASE
DOCUMENTS”), IT IS EXPRESSLY UNDERSTOOD AND AGREED BY AND BETWEEN THE PARTIES HERETO THAT: (I) SELLER SHALL HAVE
NO LIABILITY FOR, BUYER AND ITS SUCCESSORS AND ASSIGNS SHALL BE DEEMED TO HAVE WAIVED AND RELEASED SELLER FROM AND AGAINST ANY
AND ALL CLAIMS ARISING FROM, AND BUYER AND ITS SUCCESSORS AND ASSIGNS SHALL OTHERWISE HAVE NO RECOURSE AGAINST SELLER WITH RESPECT
TO, ANY BREACH OR ALLEGED BREACH BY OR ON THE PART OF SELLER OF ANY REPRESENTATION, WARRANTY, COVENANT, UNDERTAKING, INDEMNITY
OR AGREEMENT CONTAINED IN ANY OF THE PURCHASE DOCUMENTS (COLLECTIVELY, “SELLER’S UNDERTAKINGS”)
OCCURRING PRIOR TO THE CLOSE OF ESCROW (PROVIDED THAT BUYER HAD ACTUAL KNOWLEDGE OF SUCH BREACH OR ALLEGED BREACH PRIOR TO THE
CLOSE OF ESCROW BUT NEVERTHELESS ELECTED TO PROCEED WITH THE CLOSE OF ESCROW), (II) SELLER SHALL HAVE NO LIABILITY FOR, BUYER
AND ITS SUCCESSORS AND ASSIGNS SHALL BE DEEMED TO HAVE WAIVED AND RELEASED SELLER FROM AND AGAINST ANY AND ALL CLAIMS ARISING
FROM, AND BUYER AND ITS SUCCESSORS AND ASSIGNS SHALL OTHERWISE HAVE NO RECOURSE AGAINST SELLER WITH RESPECT TO, ANY BREACH OR
ALLEGED BREACH BY OR ON THE PART OF SELLER OF ANY OF SELLER’S UNDERTAKINGS OCCURRING (A) AFTER THE CLOSE OF ESCROW OR (B)
PROVIDED THAT BUYER DID NOT HAVE KNOWLEDGE OF SUCH BREACH OR ALLEGED BREACH PRIOR TO THE CLOSE OF ESCROW, PRIOR TO THE CLOSE OF
ESCROW (COLLECTIVELY, “BUYER’S POST-CLOSING CLAIMS”), UNLESS BUYER HAS DELIVERED TO SELLER WRITTEN
NOTICE THAT BUYER IS SEEKING RECOURSE WITH RESPECT THERETO (THE “RECOURSE NOTICE”) AFTER THE CLOSE OF
ESCROW BUT ON OR BEFORE THE DATE THAT IS SIX (6) MONTHS FOLLOWING THE CLOSE OF ESCROW AND BUYER HAS FILED SUIT WITH RESPECT THERETO
WITHIN THIRTY (30) DAYS AFTER BUYER’S DELIVERY OF THE RECOURSE NOTICE, (III) THE RECOURSE OF BUYER AND ITS SUCCESSORS OR
ASSIGNS AGAINST SELLER WITH RESPECT TO BUYER’S POST-CLOSING CLAIMS SHALL BE LIMITED TO AN AMOUNT NOT TO EXCEED ONE HUNDRED
FIFTY THOUSAND DOLLARS ($150,000) IN THE AGGREGATE (PLUS ANY AWARD FOR BROKER’S COMMISSIONS AS DESCRIBED IN PARAGRAPH
17 OR PROFESSIONAL FEES AS DESCRIBED IN PARAGRAPH 21(e)), PROVIDED HOWEVER, BUYER SHALL HAVE NO RIGHT TO FILE SUIT
FOR RECOURSE WITH RESPECT TO BUYER’S POST-CLOSING CLAIMS UNLESS AND UNTIL THE AGGREGATE AMOUNT OF SUCH RECOURSE EXCEEDS
twenty thousand DOLLARS ($20,000); PROVIDED FURTHER, THAT IN THE EVENT ANY JUDGMENT AGAINST SELLER FOR RECOURSE WITH RESPECT
TO BUYER’S POST-CLOSING CLAIMS (EXCLUSIVE OF ANY AWARD FOR PROFESSIONAL FEES AS DESCRIBED IN PARAGRAPH 21(e)) IS
FOR AN AMOUNT LESS THAN TWENTY thousand DOLLARS ($20,000), THEN SELLER SHALL BE
DEEMED TO BE THE PREVAILING PARTY (INCLUDING WITHOUT LIMITATION FOR THE PURPOSES OF PARAGRAPH 21(e)) AND SELLER SHALL HAVE
NO LIABILITY THEREFOR; (IV) NO PERSONAL LIABILITY OR PERSONAL RESPONSIBILITY OF ANY SORT WITH RESPECT TO ANY OF SELLER’S
UNDERTAKINGS OR ANY BREACH OR ALLEGED BREACH THEREOF IS ASSUMED BY, OR SHALL AT ANY TIME BE ASSERTED OR ENFORCEABLE AGAINST, SELLER
EXCEPT AS EXPRESSLY PROVIDED IN SUBPARAGRAPHS (II) AND (III) ABOVE, AND (V) NO PERSONAL LIABILITY OR PERSONAL RESPONSIBILITY OF
ANY SORT WITH RESPECT TO ANY OF SELLER’S UNDERTAKINGS OR ANY BREACH OR ALLEGED BREACH THEREOF, IS ASSUMED BY, OR SHALL AT
ANY TIME BE ASSERTED OR ENFORCEABLE AGAINST ANY OF SELLER’S DIRECT OR INDIRECT MEMBERS, MANAGERS, PARTNERS, SHAREHOLDERS,
DIRECTORS, OFFICERS, EMPLOYEES, AGENTS, TRUSTORS, BENEFICIARIES, TRUSTEES OR REPRESENTATIVES. NOTWITHSTANDING ANYTHING CONTAINED
IN THIS AGREEMENT TO THE CONTRARY, IN NO EVENT SHALL SELLER BE LIABLE TO BUYER FOR ANY PUNITIVE, SPECULATIVE OR CONSEQUENTIAL
DAMAGES.

 

    	 	18	 

     

    

 

(b)          Default
by Buyer. IN THE EVENT THE CLOSE OF ESCROW DOES NOT OCCUR BY REASON OF ANY DEFAULT BY BUYER (OR ANY DEFAULT BY BUYER UNDER
THE OTHER PURCHASE AGREEMENTS), BUYER AND SELLER AGREE THAT IT WOULD BE IMPRACTICAL AND EXTREMELY DIFFICULT TO ESTIMATE THE DAMAGES
WHICH SELLER MAY SUFFER. THEREFORE BUYER AND SELLER DO HEREBY AGREE THAT A REASONABLE ESTIMATE OF THE TOTAL NET DETRIMENT THAT
SELLER WOULD SUFFER IN THE EVENT OF SUCH A DEFAULT BY BUYER IS AND SHALL BE, AS SELLER’S SOLE AND EXCLUSIVE REMEDY (WHETHER
AT LAW OR IN EQUITY) FOR SUCH BREACH, AN AMOUNT EQUAL TO THE DEPOSIT, AND ANY INTEREST ACCRUING THEREON. SAID AMOUNT SHALL BE
THE FULL, AGREED AND LIQUIDATED DAMAGES FOR SUCH A BREACH OF THIS AGREEMENT BY BUYER, ALL OTHER CLAIMS TO DAMAGES OR OTHER REMEDIES
WITH RESPECT TO SUCH A BREACH BY BUYER BEING HEREIN EXPRESSLY WAIVED BY SELLER. UPON SUCH A DEFAULT BY BUYER, THIS AGREEMENT SHALL
BE TERMINATED AND, EXCEPT FOR THOSE PROVISIONS WHICH EXPRESSLY SURVIVE TERMINATION OF THIS AGREEMENT, NEITHER PARTY SHALL HAVE
ANY FURTHER RIGHTS OR OBLIGATIONS HEREUNDER, EACH TO THE OTHER EXCEPT FOR THE RIGHT OF SELLER TO COLLECT SUCH LIQUIDATED DAMAGES
FROM BUYER AND ESCROW HOLDER. NOTWITHSTANDING ANYTHING IN THIS PARAGRAPH 18(b) TO THE CONTRARY, IN THE EVENT OF A TERMINATION
OF THIS AGREEMENT, SELLER SHALL HAVE ALL REMEDIES AVAILABLE AT LAW OR IN EQUITY IN THE EVENT BUYER OR ANY PARTY RELATED TO OR
AFFILIATED WITH BUYER IS ASSERTING ANY CLAIMS OR RIGHT TO THE PROPERTY THAT WOULD OTHERWISE DELAY OR PREVENT SELLER FROM HAVING
CLEAR, INDEFEASIBLE AND MARKETABLE TITLE TO THE PROPERTY. IF CLOSE OF ESCROW IS CONSUMMATED, SELLER SHALL HAVE ALL REMEDIES AVAILABLE
AT LAW OR IN EQUITY IN THE EVENT BUYER FAILS TO PERFORM ANY OBLIGATION OF BUYER UNDER THIS AGREEMENT. NOTWITHSTANDING ANYTHING
IN THIS PARAGRAPH 18(b) TO THE CONTRARY, THE FOREGOING SHALL IN NO EVENT LIMIT BUYER’S OBLIGATIONS UNDER PARAGRAPHS
4(d), 17, 20, 21(e) and 21(m) AND/OR SELLER’S RIGHTS AND REMEDIES IN CONNECTION THEREWITH.

 

(c)          Survival.
THE PROVISIONS OF THIS PARAGRAPH 18 SHALL SURVIVE THE CLOSE OF ESCROW AND ANY TERMINATION OF THIS AGREEMENT.

 

	 	 	 	 	 
	 	Buyer’s Initials	 	Seller’s Initials	 

 

19.         Assignment.
Prior to the Close of Escrow, Buyer shall not directly or indirectly assign, transfer or convey its rights and obligations under
this Agreement or in the Property without the prior written consent of Seller (in its sole and absolute discretion), and any purported
assignment, transfer or conveyance without such consent of Seller shall be null and void. Any approved assignee shall succeed
to all of Buyer’s rights and remedies hereunder. Notwithstanding the foregoing, Buyer shall have the right to assign all
of its right, title and interest in and to this Agreement (partial assignments shall not be permitted) to any Affiliate of Buyer;
provided that (1) such assignment includes an assumption by the assignee of all of Buyer’s obligations under this Agreement,
including a remaking of all of Buyer’s representations and warranties in this Agreement in favor of Seller, and is otherwise
in form reasonably approved by Seller, and (2) Buyer delivers notice of such assignment, together with a copy of such fully executed
assignment, and an affidavit, or such proofs as are reasonably required by Seller to establish that any purported assignment of
this Agreement complies with the provisions hereof, to Seller not later than seven (7) Business Days prior to the Closing Date.
Notwithstanding the foregoing, no such assignment shall relieve Buyer from its liability under this Agreement.

 

    	 	19	 

     

    

 

20.         Confidentiality.
Buyer agrees that it shall keep confidential the information contained in the materials delivered or provided for inspection by
Seller pursuant to the terms of this Agreement or otherwise obtained by Buyer in the conduct of its Due Diligence, that it shall
use such information only to evaluate the acquisition of the Property from Seller and not in a manner which has an adverse effect
on Seller, and that it shall not disclose such information to any third parties (except as may be required by applicable law),
except that Buyer shall have the right to provide such information to its lenders, consultants, attorneys and prospective investors
in connection with Buyer’s acquisition of the Property (provided that Buyer shall instruct the aforesaid parties to maintain
the confidentiality of such information). If the transaction contemplated by this Agreement is not consummated for any reason,
Buyer promptly shall destroy, and instruct its representatives, consultants, attorneys, lenders, and prospective investors to
destroy, all Seller’s Documents and all other copies and originals of information and materials previously provided for
inspection by Seller to Buyer. The provisions of this Paragraph 20 shall survive any termination of this Agreement.

 

		21.	Miscellaneous.

 

(a)          Governing
Law. The parties hereto acknowledge that this Agreement has been negotiated and entered into in California. The parties
hereto expressly agree that this Agreement shall be governed by, interpreted under, and construed and enforced in accordance with
the laws of the State of California.

 

(b)          Partial
Invalidity. If any term or provision of this Agreement or the application thereof to any person or circumstance shall,
to any extent, be invalid or unenforceable, the remainder of this Agreement, or the application of such term or provision to persons
or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby, and each such
term and provision of this Agreement shall be valid and be enforced to the fullest extent permitted by law.

 

(c)          Waivers.
No waiver of any breach of any covenant or provision herein contained shall be deemed a waiver of any preceding or succeeding
breach thereof, or of any other covenant or provision herein contained. No extension of time for performance of any obligation
or act shall be deemed an extension of the time for performance of any other obligation or act.

 

(d)          Successors
and Assigns. This Agreement shall be binding upon and shall inure to the benefit of the permitted successors and assigns
of the parties hereto.

 

(e)          Professional
Fees. In the event of the bringing of any action or suit by a party hereto against another party hereunder by reason of
any breach of any of the covenants, agreements or provisions on the part of the other party arising out of this Agreement, then
in that event the prevailing party shall be entitled to have and recover of and from the other party all reasonable out-of-pocket
costs and expenses of the action or suit, including reasonable out-of-pocket attorneys’ fees, accounting and engineering
fees, and any other professional fees resulting therefrom.

 

(f)          Entire
Agreement. This Agreement (including all Exhibits attached hereto) is the final expression of, and contains the entire
agreement between, the parties with respect to the subject matter hereof and supersedes all prior understandings with respect
thereto. This Agreement may not be modified, changed, supplemented or terminated, nor may any obligations hereunder be waived,
except by written instrument signed by the party to be charged or by its agent duly authorized in writing or as otherwise expressly
permitted herein. The parties do not intend to confer any benefit hereunder on any person, firm or corporation other than the
parties hereto.

 

(g)          Time
of Essence. Seller and Buyer hereby acknowledge and agree that time is strictly of the essence with respect to each and
every term, condition, obligation and provision hereof and that failure to timely perform any of the material terms, obligations
or provisions hereof (including, without limitation, the obligation to timely fund the Initial Deposit on or before the Initial
Deposit Deadline pursuant to Paragraph 2(a), the obligation to timely fund the Additional Deposit pursuant to Paragraph
2(a) and the obligation to timely fund the balance of the Purchase Price (as adjusted by Buyer’s share of expenses and
prorations) pursuant to Paragraph 2(b)) by either party shall constitute a material breach of and a non-curable (but waivable)
default under this Agreement by the party so failing to perform.

 

    	 	20	 

     

    

 

(h)          Construction.
Headings at the beginning of each paragraph and subparagraph are solely for the convenience of the parties and are not a part
of the Agreement. Whenever required by the context of this Agreement, the singular shall include the plural and the masculine
shall include the feminine and vice versa. This Agreement shall not be construed as if it had been prepared by one of the parties,
but rather as if both parties had prepared the same. Unless otherwise indicated, all references to paragraphs and subparagraphs
are to this Agreement. In the event the date on which Buyer or Seller is required to take any action under the terms of this Agreement
is not a Business Day, the action shall be taken on the next succeeding Business Day. For purposes of this Agreement, the term
“Business Day” shall mean any day other than Saturday, Sunday or any day upon which banks in the State
of California are required or permitted to be closed. For purposes of this Agreement, “Person” shall
mean any natural person, corporation, general or limited partnership, limited liability company, association, joint venture, trust,
estate, Governmental Authority or other legal entity, in each case whether in its own or a representative capacity. For purposes
of this Agreement, “Affiliate” means, with respect to the Person in question, any other Person that,
directly or indirectly, controls, is controlled by or is under common control with, such Person. For the purposes of this definition,
the term “control” means the possession, directly or indirectly, of the power to direct or cause the direction of
the management and policies of the Person in question, whether by the ownership of voting securities, contract or otherwise.

 

(i)          Authority.
The individuals signing below represent and warrant that they have the requisite authority to bind the entities on whose behalf
they are signing.

 

(j)          Severability.
The invalidity or unenforceability of any one or more of the provisions of this Agreement shall not affect the validity or enforceability
of any other provisions of this Agreement.

 

(k)          Further
Assurances. The parties hereto agree to execute, acknowledge and deliver any and all additional papers, documents and
other assurances and shall perform any and all acts and things reasonably necessary in connection with the performance of the
obligations hereunder to carry out the interest of the parties hereto.

 

(l)          Counterparts.
This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together
shall constitute one and the same instrument.

 

(m)          No
Recordation or Lis Pendens.

 

(i)          THE
PARTIES HERETO AGREE THAT NEITHER THIS AGREEMENT NOR ANY MEMORANDUM OR NOTICE HEREOF SHALL BE RECORDED, AND, EXCEPT AS OTHERWISE
PROVIDED IN PARAGRAPH 21(m)(ii), BUYER AGREES NOT TO FILE ANY LIS PENDENS OR OTHER INSTRUMENT AGAINST THE PROPERTY IN CONNECTION
HEREWITH. IN FURTHERANCE OF THE FOREGOING, BUYER (I) ACKNOWLEDGES THAT THE FILING OF A LIS PENDENS OR OTHER EVIDENCE OF BUYER’S
RIGHTS OR THE EXISTENCE OF THIS AGREEMENT AGAINST THE PROPERTY, COULD CAUSE SIGNIFICANT MONETARY AND OTHER DAMAGES TO SELLER AND
(II) HEREBY INDEMNIFIES SELLER FROM AND AGAINST ANY AND ALL LIABILITIES, DAMAGES, LOSSES, COSTS OR EXPENSES (INCLUDING, WITHOUT
LIMITATION, REASONABLE ATTORNEYS’ FEES AND COSTS INCURRED IN THE ENFORCEMENT OF THE FOREGOING INDEMNIFICATION OBLIGATION)
ARISING OUT OF THE BREACH BY BUYER OF ANY OF BUYER’S OBLIGATIONS UNDER THIS PARAGRAPH 21(m).

 

(ii)         NOTWITHSTANDING
THE PROVISIONS OF PARAGRAPH 21(m)(i) ABOVE, BUYER SHALL HAVE THE RIGHT TO FILE A LIS PENDENS AGAINST THE PROPERTY SOLELY
UNDER CIRCUMSTANCES UNDER WHICH BUYER IS IN GOOD FAITH SEEKING SPECIFIC PERFORMANCE OF SELLER’S OBLIGATIONS HEREUNDER, PROVIDED
(A) BUYER FILES SUCH CLAIM WITHIN THIRTY (30) DAYS AFTER THE EARLIER OF (X) THE DATE ON WHICH SELLER PURPORTS TO TERMINATE THIS
AGREEMENT OR BUYER ALLEGES THAT SELLER HAS DEFAULTED HEREUNDER OR (Y) THE CLOSING DATE AND (B) IF IT IS ULTIMATELY DETERMINED BY
A COURT ORDER THAT BUYER WAS NOT ENTITLED TO SPECIFIC PERFORMANCE UNDER THIS AGREEMENT OTHER THAN AS A RESULT OF ANY WRONGFUL ACT
BY SELLER MAKING SPECIFIC PERFORMANCE IMPRACTICABLE OR IMPOSSIBLE, BUYER SHALL, AND HEREBY DOES, INDEMNIFY AND HOLD HARMLESS SELLER
FROM AND AGAINST ANY AND ALL LIABILITIES, DAMAGES, LOSSES, COSTS OR EXPENSES (INCLUDING, WITHOUT LIMITATION, REASONABLE ATTORNEYS’
FEES AND COSTS INCURRED IN THE ENFORCEMENT OF THE FOREGOING INDEMNIFICATION OBLIGATION) ARISING OUT OF THE FILING OF SUCH LIS PENDENS
BY BUYER (INCLUDING, WITHOUT LIMITATION, CONSEQUENTIAL DAMAGES INCURRED BY SELLER AS A RESULT THEREOF).

 

    	 	21	 

     

    

 

(iii)        THE
PROVISIONS OF THIS PARAGRAPH 21(m) SHALL SURVIVE THE TERMINATION OF THIS AGREEMENT.

 

	 	______________	 	 	_____________	 
	 	BUYER’S INITIALS	 	 	SELLER’S INITIALS	 

 

(n)          THE
SUBMISSION OF THIS AGREEMENT FOR EXAMINATION IS NOT INTENDED TO NOR SHALL IT CONSTITUTE AN OFFER TO SELL, OR A RESERVATION OF,
OR OPTION OR PROPOSAL OF ANY KIND FOR THE PURCHASE OF THE PROPERTY. IN NO EVENT SHALL ANY DRAFT OF THIS AGREEMENT CREATE ANY OBLIGATION
OR LIABILITY, IT BEING UNDERSTOOD THAT THIS AGREEMENT SHALL BE EFFECTIVE AND BINDING ONLY WHEN A COUNTERPART HEREOF HAS BEEN EXECUTED
AND DELIVERED BY EACH PARTY HERETO TO ESCROW HOLDER.

 

    	 	22	 

     

    

  

IN WITNESS WHEREOF,
the parties hereto have executed this Agreement as of the date and year hereinabove written.

 

	 	Seller:
	 	 
	 	OCTAVIA GATEWAY HOLDINGS, LLC,
	 	a Delaware limited liability company
	 	 	 
	 	By:	DM Development Partners, LLC,
	 	 	a California limited liability company, Its Manager

 

	 	By:	 
	 	Name:	 
	 	Title:	 

 

	 	By:	DDG
    California LLC,
	 	 	a Delaware
    limited liability company, Its Manager
	 	 	 
	 		By:	DDG
    Partners LLC,
	 	 	a
    Delaware limited liability company,
	 	 	Its
    Member

 

	 	By:	 
	 	Name:	 
	 	Title:	 

 

	 	Buyer:
	 	 
	 	SRT SF RETAIL I, LLC,
	 	a Delaware limited liability company

 

	 	By:	 
	 	Name:	 
	 	Title:	 

 

    	 	S-1	 

     

    

 

ACCEPTANCE BY ESCROW HOLDER

 

First American Title Insurance Company
acknowledges that it has received a fully executed copy of the foregoing Agreement of Purchase and Sale and Joint Escrow Instructions
(the “Agreement”) and agrees to act as Escrow Holder under the Agreement and to be bound by and strictly
perform the terms thereof as such terms apply to Escrow Holder.

 

Dated: May ___, 2016

 

first
american Title Insurance Company

 

	By: 	 	 
	Name: 	 	 
	Title: 	 	 

 

    	 	S-2	 

     

    

 

EXHIBIT
“A”

 

LEGAL
DESCRIPTION

 

THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY AND
COUNTY OF SAN FRANCISCO, STATE OF CALIFORNIA AND IS DESCRIBED AS FOLLOWS:

 

A CONDOMINIUM COMPRISED OF

 

TRACT A:

 

PARCEL ONE:

 

CONDOMINIUM UNIT 102 (LOT NO. 53) OF PARCEL A OF FINAL MAP 7511,
FILED MAY 29, 2014 IN BOOK 123 OF CONDOMINIUM MAPS, PAGES 188, 189 AND 190 OFFICIAL RECORDS OF SAN FRANCISCO COUNTY RECORDS ("OFFICIAL
RECORDS"), AS SUCH UNIT IS SHOWN ON THE CONDOMINIUM PLAN ("PLAN"), ATTACHED AS AN EXHIBIT TO THE DECLARATION OF
RESTRICTIONS AND CONDOMINIUM PLAN FOR 8 OCTAVIA BOULEVARD ("DECLARATION"), RECORDED JULY 25, 2014, SERIES NO. 2014-J914505
OFFICIAL RECORDS, ALONG WITH ANY AMENDMENTS AND/OR ANNEXATIONS RECORDED PURSUANT THERETO.

 

PARCEL TWO:

 

AN UNDIVIDED 4.2669% INTEREST AS TENANT IN COMMON IN AND TO
THE COMMON AREA LYING WITHIN SAID PARCEL A OF FINAL MAP 7511, AS SHOWN ON THE PLAN AND DEFINED IN THE DECLARATION, EXCEPTING THEREFROM
THE FOLLOWING:

 

A. ALL CONDOMINIUM UNITS SHOWN ON THE PLAN AND DESCRIBED IN
THE DECLARATION.

 

PARCEL THREE:

 

NON-EXCLUSIVE EASEMENTS FOR USE, ENJOYMENT, INGRESS, EGRESS
AND SUPPORT IN AND TO THE COMMON AREA, AS SHOWN ON THE PLAN AND DESCRIBED IN THE DECLARATION, FOR THE BENEFIT OF PARCEL ONE HEREINABOVE.

 

PARCEL FOUR:

 

EXCLUSIVE USE EASEMENTS, AS SHOWN ON THE PLAN AND DESCRIBED
IN THE

DECLARATION, APPURTENANT TO PARCEL ONE HEREINABOVE FOR THE POSSESSION,
USE AND ENJOYMENT OF:

 

A.           PARKING
P- N/A

B.           HANDICAP
PARKING HCP- N/A

C.           BIKE
STALL B- N/A

D.           ROOF
EQUIPMENT AREA E-102

 

TRACT B:

 

PARCEL ONE:

 

CONDOMINIUM UNIT 307 (LOT NO. 54) OF PARCEL A OF FINAL MAP 7511,
FILED MAY 29, 2014 IN BOOK 123 OF CONDOMINIUM MAPS, PAGES 188, 189 AND 190 OFFICIAL RECORDS OF SAN FRANCISCO COUNTY RECORDS ("OFFICIAL
RECORDS"), AS SUCH UNIT IS SHOWN ON THE CONDOMINIUM PLAN ("PLAN"), ATTACHED AS AN EXHIBIT TO THE DECLARATION OF
RESTRICTIONS AND CONDOMINIUM PLAN FOR 8 OCTAVIA BOULEVARD ("DECLARATION"), RECORDED JULY 25, 2014, SERIES NO. 2014-J914505
OFFICIAL RECORDS, ALONG WITH ANY AMENDMENTS AND/OR ANNEXATIONS RECORDED PURSUANT THERETO.

 

    	 	A-1	 

     

    

 

PARCEL TWO:

 

AN UNDIVIDED 1.5325% INTEREST AS TENANT IN COMMON IN AND TO
THE COMMON AREA LYING WITHIN SAID PARCEL A OF FINAL MAP 7511, AS SHOWN ON THE PLAN AND DEFINED IN THE DECLARATION, EXCEPTING THEREFROM
THE FOLLOWING:

 

A. ALL CONDOMINIUM UNITS SHOWN ON THE PLAN AND DESCRIBED IN
THE DECLARATION.

 

PARCEL THREE:

 

NON-EXCLUSIVE EASEMENTS FOR USE, ENJOYMENT, INGRESS, EGRESS
AND SUPPORT IN AND TO THE COMMON AREA, AS SHOWN ON THE PLAN AND DESCRIBED IN THE DECLARATION, FOR THE BENEFIT OF PARCEL ONE HEREINABOVE.

 

PARCEL FOUR:

 

EXCLUSIVE USE EASEMENTS, AS SHOWN ON THE
PLAN AND DESCRIBED IN THE DECLARATION, APPURTENANT TO PARCEL ONE HEREINABOVE FOR THE POSSESSION, USE AND ENJOYMENT OF:

 

A.           PARKING
P- N/A

B.           HANDICAP
PARKING HCP- N/A

C.           BIKE
STALL B- N/A

 

TRACT C:

 

PARCEL ONE:

 

CONDOMINIUM UNIT 308 (LOT NO. 55) OF PARCEL A OF FINAL MAP 7511,
FILED MAY 29, 2014 IN BOOK 123 OF CONDOMINIUM MAPS, PAGES 188, 189 AND 190 OFFICIAL RECORDS OF SAN FRANCISCO COUNTY RECORDS ("OFFICIAL
RECORDS"), AS SUCH UNIT IS SHOWN ON THE CONDOMINIUM PLAN ("PLAN"), ATTACHED AS AN EXHIBIT TO THE DECLARATION OF
RESTRICTIONS AND CONDOMINIUM PLAN FOR 8 OCTAVIA BOULEVARD ("DECLARATION"), RECORDED JULY 25, 2014, SERIES NO. 2014-J914505
OFFICIAL RECORDS, ALONG WITH ANY AMENDMENTS AND/OR ANNEXATIONS RECORDED PURSUANT THERETO.

 

PARCEL TWO:

 

AN UNDIVIDED 3.2689% INTEREST AS TENANT IN COMMON IN AND TO
THE COMMON AREA LYING WITHIN SAID PARCEL A OF FINAL MAP 7511, AS SHOWN ON THE PLAN AND DEFINED IN THE DECLARATION, EXCEPTING THEREFROM
THE FOLLOWING:

 

A. ALL CONDOMINIUM UNITS SHOWN ON THE PLAN AND DESCRIBED IN
THE DECLARATION.

 

PARCEL THREE:

 

NON-EXCLUSIVE EASEMENTS FOR USE, ENJOYMENT, INGRESS, EGRESS
AND SUPPORT IN AND TO THE COMMON AREA, AS SHOWN ON THE PLAN AND DESCRIBED IN THE DECLARATION, FOR THE BENEFIT OF PARCEL ONE HEREINABOVE.

 

PARCEL FOUR:

 

EXCLUSIVE USE EASEMENTS, AS SHOWN ON THE PLAN AND DESCRIBED
IN THE DECLARATION, APPURTENANT TO PARCEL ONE HEREINABOVE FOR THE POSSESSION, USE AND ENJOYMENT OF:

 

    	 	A-2	 

     

    

 

 

A.           PARKING
P- N/A

B.           HANDICAP
PARKING HCP- N/A

C.           BIKE
STALL B- N/A

D.           DECK
D-308

 

	Assessor's: 	Lot 053; Block 0855 (Affects: Tract A)
	 	Lot 054; Block 0855 (Affects: Tract B) and
	 	Lot 055; Block 0855 (Affects: Tract C)

 

    	 	A-3	 

     

    

 

EXHIBIT
“B”

 

LIST
OF SELLER’S DOCUMENTS

 

8 Octavia ALTA Owner's Policy

 

Boba Lease - Executed

 

Final Certificate of Occupancy 02.24.15

 

Geotechnical Report

 

HOA Budget 05.30.14

 

Phase I Environmental Site Assessment

 

ACC Phase II Report

 

CC&R's 2014 - J914505

 

DDG Property Management Agreement 2014
- 2015

 

Executed First Source Agreement

 

Go Sake Restaurant Lease

 

Go Sake Retail Lease

 

OGW Final Construction Drawings 03.31.13

 

Preliminary Title Report Suite 102

 

Preliminary Title Report Suite 307

 

Preliminary Title Report Suite 308

 

Recorded NSR - Conditions of Approval

 

FATCO Title Insurance Commitment / PTR
(hyperlinked) – effective date March 31, 2016

 

HOA Insurance Certificates

 

Tenant Insurance Certificates

 

Recent Property Tax Bills

 

Tenant Contact List

 

HOA Actuals (prior years)

 

HOA Budget (2016)

 

Warranties

 

HOA Reserve Study (if any)

 

Tenant Financials

 

    	 	B-1	 

     

    

 

EXHIBIT
“C”

 

FORM
OF ESTOPPEL CERTIFICATE

 

	To:	 	 
	 	 	 
	Dated:	 	 

 

Re:        Lease
Pertaining to _________________________ (the “Property”)

 

Ladies and Gentlemen:

 

The above addressee (“Buyer”)
has entered into an agreement to acquire the Property. The undersigned, as tenant (“Tenant”) acknowledges the
right of Buyer to rely upon the statements and representations of the undersigned contained in this certificate, and further acknowledges
that Buyer will be acquiring the Property in material reliance on this certificate. Given the foregoing, Tenant hereby certifies
and represents to Buyer and its lender, Keybank National Association (and its and their successors and assigns), and Landlord (and
its successors and assigns) with respect to the above-described Lease, as follows (if any blanks do not apply, simply state “None”):

 

		1.	Tenant is the lessee under that certain lease (the “Lease”)
pertaining to the Property which is dated [_____________], and includes the following amendments: [Describe Lease and amendments]

 

		2.	The name of the current landlord (“Landlord”)
is: ___________________________________.

 

		3.	The Lease is for the following portion of the Property
(the “Premises”): That certain space identified as [__________] having approximately [___________] of rentable
square feet.

 

		4.	The initial term of the Lease commenced on [_________]
and shall expire on [__________], unless sooner terminated in accordance with the terms of the Lease. Tenant has no option to
renew or extend the term of the Lease, except as follows (if none, so state): [_________].

 

		5.	The Lease, as it may have been modified or amended, contains
the entire agreement of Landlord and Tenant with respect to the Premises, and is in full force and effect.

 

		6.	As of the date hereof, Tenant is occupying the Premises
and is paying rent on a current basis under the Lease.

 

		(a)	The minimum monthly or base rent currently being paid by
Tenant for the Premises pursuant to the terms of the Lease is [________] per month and has been paid through , 2016.

 

		(b)	Percentage rent (“Percentage Rent”),
if any, due under the Lease has been paid through [________] and the amount of Percentage Rent for [________] was [________].

 

		(c)	Common area maintenance, taxes, insurance and other charges
(the “Reimbursables”) due under the Lease, currently in the amount of $__________ per month, have been paid
through [________].

 

		7.	Tenant has accepted possession of the Premises, and all
construction to be performed by Landlord for the Premises under the Lease has been completed in accordance with the terms of the
Lease and within the time periods set forth in the Lease. Landlord has paid in full any required contribution towards work to
be performed by Tenant under the Lease, except as follows (if none, so state): __________________________________________________.

 

		8.	The Premises shall be expanded by the addition of the following
space on the dates hereinafter indicated (if none, so state): _________________________________________________________________________.

 

    	 	C-1	 

     

    

 

		9.	No default or event that with the passage of time or notice
would constitute a default on the part of Tenant exists under the Lease in the performance of the terms, covenants and conditions
of the Lease required to be performed on the part of the Tenant.

 

		10.	No default or event that with the passage of time or notice
would constitute a default on the part of Landlord exists under the Lease in the performance of the terms, covenants and conditions
of the Lease required to be performed on the part of Landlord.

 

		11.	Tenant has no option or right to purchase all or any part
of the Property.

 

		12.	Tenant has not assigned, sublet, transferred, hypothecated
or otherwise disposed of its interest in the Lease and/or the Premises, or any part thereof.

 

		13.	Neither the Lease nor any obligations of Tenant thereunder
have been guaranteed by any person or entity, except as follows (if none, so state): _____________________________________________________________.

 

		14.	Tenant has received no notice that, and has no knowledge
that, hazardous substances are being generated, used, handled, stored or disposed of by Tenant on the Premises or on the Property
in violation of any applicable laws, rules or regulations or the terms of the Lease.

 

		15.	No rentals are accrued and unpaid under the Lease, except
for Percentage Rent, if any, or Reimbursables, if any, which are not yet due and payable.

 

		16.	No prepayments of rentals due under the Lease have been
made for more than one month in advance. No security or similar deposit has been made under the Lease, except for the sum of [________]
which has been deposited by Tenant with Landlord pursuant to the terms of the Lease.

 

		17.	Tenant has no defense, setoff, claim or counterclaim as
to its obligations under the Lease, and to date has not asserted any rights of setoff, claim or counterclaim against Landlord.

 

		18.	Tenant has not received notice of any assignment, hypothecation,
mortgage or pledge of Landlord’s interest in the Lease or the rents or other amounts payable thereunder, except as follows
(if none, so state): _________________________________________________________________________________.

 

		19.	The undersigned is authorized to execute this Tenant Estoppel
on behalf of Tenant.

 

Dated: , 2016

 

Very truly yours,

 

TENANT:

[___________________________________]

[___________________________________]

 

	By:	 	 
	Name:	 	 
	Its:	 	 

 

    	 	C-2	 

     

    
 

GUARANTOR CERTIFICATION

 

The undersigned (“Guarantor”)
certifies to Buyer, its lender and their successors and assigns that he/she/it is guarantor of the Lease described in the attached
Estoppel Certificate pursuant to a Guaranty dated _________________, 20__ (the “Guaranty”). The Guarantor certifies
that the Guaranty remains in full force and effect, and that guarantor has no offsets or defenses or counterclaims with respect
thereto. Guarantor further certifies that, to its knowledge, each statement of Tenant set forth in the attached Estoppel Certificate
is true, correct and complete. Guarantor acknowledges that Landlord, Buyer and its lender are relying upon the accuracy of the
statements in this Guarantor Certification.

 

	Signed by Guarantor on:	GUARANTOR:	 
	 	 	 
	_________________, 2016	[___________________________________]	 
	 	[___________________________________]	 
	 	 	 
	 	 	 
	 	By:	 	 
	 	Name:	 	 
	 	Its:	 	 

 

    	 	C-3	 

     

    

 

EXHIBIT “D”

 

	RECORDING REQUESTED BY	 
	AND WHEN RECORDING MAIL TO:	 
	 	 
	 	 
	 	 
	 	 

 

(Above Space for
Recorder’s Use Only)

 

GRANT DEED

 

The Undersigned Grantor(s) Declare(s): DOCUMENTARY
TRANSFER TAX is $____________, computed on full value of the property conveyed; City and County of San Francisco, State of California;

 

FOR VALUABLE CONSIDERATION, receipt of which
is hereby acknowledged, _____________________, a ______________________ (“Grantor”),
hereby GRANTS to ________________, a _________ __________________, the following described real property (the “Property”)
located in the City and County of San Francisco, State of California: See Exhibit “A” attached hereto.

 

SUBJECT TO:

 

1.          Taxes
and assessments.

 

2.          All
other covenants, conditions, restrictions, reservations, rights, rights of way, easements, encumbrances, liens and title matters
whether or not of record or visible from an inspection of the Property and all matters which an accurate survey of the Property
would disclose.

 

    	 	D-1	 

     

    

 

IN WITNESS WHEREOF, Grantor
has caused this Grant Deed to be executed as of the ___ day of ____________, 2016.

 

	 	GRANTOR:	 
	 	 	 
	 	____________________________,	 
	 	a _____________________	 
	 	 	 
	 	By:	 	 
	 	Name:	 	 
	 	Title:	 	 

 

    	 	D-2	 

     

    

 

A
notary public or other officer completing this certificate
verifies only the identity of the individual who signed
the document to which
this certificate is attached, and not the truthfulness,
accuracy, or validity of that document.

 

	STATE OF CALIFORNIA	)
	 	)      ss:
	COUNTY OF	)

 

On ______________, 2016 before me, _____________________________________________

(insert name and title of the officer),

 

personally appeared ____________________________,
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument
and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their
signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

 

I certify under PENALTY OF PERJURY under the laws of the State of
California that the foregoing paragraph is true and correct.

 

WITNESS my hand and official seal.

 

	Signature:	 	 

 

[Seal]

 

    	 	D-3	 

     

    

 

EXHIBIT “A”
to Grant deed

 

LEGAL DESCRIPTION

 

THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY AND COUNTY
OF San Francisco, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS:

 

    	 	D-4	 

     

    

 

EXHIBIT “E”

 

BILL OF SALE

 

THIS BILL OF SALE is made
this ______ day of _____________, 2016 by ________________, a ___________________ (“Seller”), to ________________,
a ___________________ (“Buyer”).

 

RECITALS :

 

A. Seller and Buyer
are parties to that certain Agreement of Purchase and Sale and Joint Escrow Instructions dated as of _____________, 2016 (the “Purchase
Agreement”) for the purchase and sale of certain real property more particularly described therein (the “Real
Property”). Each capitalized term not defined herein shall have the respective meaning given to that term in the
Purchase Agreement.

 

B.           The
Purchase Agreement provides, in part, that Seller shall transfer to Buyer all of Seller’s right, title and interest, if any,
in and to any tangible personal property owned by Seller and located on the Real Property, excluding any such property which is
owned by any tenant or integrated with the property manager’s operation of other properties (“Personal Property”).

 

NOW, THEREFORE, for good
and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Seller does hereby absolutely and unconditionally
give, grant, bargain, sell, transfer, set over, assign, convey, release, confirm and deliver (collectively, “Transfer”)
to Buyer, and Buyer accepts, all of Seller’s right, title and interest, if any, in and to the Personal Property.

 

1.          SELLER’S
RIGHT, TITLE AND INTEREST IN AND TO THE PERSONAL PROPERTY, IF ANY, IS BEING TRANSFERRED ON AN “AS IS” BASIS, WITHOUT
ANY REPRESENTATIONS OR WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, OF ANY KIND WHATSOEVER BY SELLER. WITHOUT LIMITING THE GENERALITY
OF THE FOREGOING, BUYER ACKNOWLEDGES THAT SELLER EXPRESSLY DISCLAIMS AND NEGATES, AS TO ALL PROPERTY TRANSFERRED HEREBY: (A) ANY
IMPLIED OR EXPRESS WARRANTY OF MERCHANTABILITY: (B) ANY IMPLIED OR EXPRESS WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE; AND (C)
ANY IMPLIED OR EXPRESS WARRANTY OF CONFORMITY TO MODELS OR MATERIALS.

 

2.          This
Bill of Sale shall be binding upon and inure to the benefit of the respective successors, assigns, personal representatives, heirs
and legatees of Buyer and Seller.

 

3.          If
any party hereto brings any action or suit against the other party hereto by reason of any breach of any covenant, agreement or
provision on the part of the other party set forth in this Bill of Sale, the prevailing party shall be entitled to recover from
the other party all reasonable out-of-pocket costs and expenses of the action or suit, including reasonable out-of-pocket attorneys’
fees, charges and costs, in addition to any other relief to which it may be entitled.

 

4.          This
Bill of Sale may be executed in counterparts, each of which shall be an original, and all of which, together, shall constitute
one and the same instrument.

 

    	 	E-1	 

     

    

 

IN WITNESS WHEREOF, Seller
has executed and delivered this Bill of Sale as of the day and year first above written.

 

	 	SELLER:	 
	 	 	 
	 	____________________________,	 
	 	a __________________________	 
	 	 	 
	 	By:	 	 
	 	Name:	 	 
	 	Title:	 	 

 

    	 	E-2	 

     

    

 

EXHIBIT “F”

 

GENERAL ASSIGNMENT

 

THIS GENERAL ASSIGNMENT
(“Assignment”) is made this _____ day of ______________, 2016, by and between ___________________________,
a __________________________ (“Assignor”), and _________________, a _____________________ (“Assignee”).

 

WITNESSETH:

 

WHEREAS, Assignor and Assignee
are parties to that certain Agreement of Purchase and Sale and Joint Escrow Instructions (the “Agreement”)
dated as of ______________, 2016, respecting the sale of certain “Property” (as described in the Agreement). Capitalized
terms used herein and not otherwise defined shall have the meanings ascribed to them in the Agreement.

 

WHEREAS, under the Agreement,
Assignor is obligated to assign to Assignee, to the extent transferable by Assignor, all of Assignor’s right, title and interest,
if any, in and to all Intangible Property, those Leases listed on Exhibit “A” attached hereto (the “Leases”),
and those Contracts listed on Exhibit “B” attached hereto (the “Contracts”).

 

NOW, THEREFORE, for good
and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, except as otherwise provided in Paragraph
9 of the Agreement, Assignor hereby assigns, sells, transfers, sets over and delivers unto Assignee, to the extent transferable
by Assignor, all of Assignor’s estate, right, title and interest in and to the Intangible Property, the Leases and the Contracts,
and Assignee hereby accepts such assignment.

 

By acceptance of this Assignment,
Assignee hereby assumes the performance of all of the terms, covenants and conditions imposed upon Assignor under the Leases and
Contracts to the extent of those obligations first arising or accruing on or after the date of this Assignment.

 

In the event any party
hereto institutes any action or proceeding against the other party with regard to this Assignment, the prevailing party in such
action shall be entitled to recover, in addition to the cost of the suit, its reasonable out-of-pocket attorneys’ fees.

 

This Assignment shall be
binding upon and inure to the benefit of the successors, assignees, personal representatives, heirs and legatees of all the respective
parties hereto.

 

This Assignment may be
executed in any number of counterparts, each of which shall be an original, and all of which, together, shall constitute one and
the same instrument.

 

The parties hereto agree
to execute, acknowledge and deliver any and all additional papers, documents and other assurances and shall perform any and all
acts and things reasonably necessary in connection with the performance of the obligations hereunder to carry out the interest
of the parties hereto.

 

    	 	F-1	 

     

    

 

IN WITNESS WHEREOF, Assignor
and Assignee have executed and delivered this Assignment as of the day and year first above written.

 

	 	ASSIGNOR:	 
	 	 	 
	 	______________________________,	 
	 	a ___________________________	 
	 	 	 
	 	By:	 	 
	 	Name:	 	 
	 	Title:	 	 
	 	 	 
	 	ASSIGNEE:	 
	 	 	 
	 	_________________________________,	 
	 	a _______________________________	 
	 	 	 
	 	By:	 	 
	 	Name:	 	 
	 	Title:	 	 

 

    	 	F-2	 

     

    

 

 

EXHIBIT “A”
TO GENERAL ASSIGNMENT

 

    	 	F-3	 

     

    

 

 

EXHIBIT “B”
TO GENERAL ASSIGNMENT

 

    	 	F-4	 

     

    

 

EXHIBIT “G”

 

TRANSFEROR’S
CERTIFICATION OF NON-FOREIGN STATUS

 

Section 1445 of the Internal
Revenue Code provides that a transferee of a United States real property interest must withhold tax if the transferor is a foreign
person. For U.S. tax purposes (including Section 1445), the owner of a disregarded entity (which has legal title to a U.S. real
property interest under local law) will be the transferor of the property and not the disregarded entity. To inform _________________,
a __________________________ (“Transferee”), that withholding of tax is not required upon the disposition
of a United States real property interest by ________________, a ____________________ (“Transferor”),
Transferor hereby certifies the following:

 

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

 

2.          The
Transferor is not a disregarded entity as defined in Section 1.1445-2(b)(2)(iii) of the Income Tax Regulations issued under the
Internal Revenue Code;

 

3.          The
Transferor’s U.S. employer identification number is __________; and

 

4.          The
Transferor’s office address is ______________________________.

 

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

 

Under penalty 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 Transferor.

 

	Date:  _______________, 2016	 	 
	 	 	 
	 	TRANSFEROR:	 
	 	 	 
	 	___________________________,	 
	 	a ________________________	 
	 	 	 
	 	By:	 	 
	 	Name:	 	 
	 	Title:	 	 

 

    	 	G-1	 

     

    

 

EXHIBIT “H”

 

FORM OF TENANT NOTICE LETTER

 

___________________________, 2016

 

		Re:	Your lease (the “Lease”) of space in the building located at [______________________], in the City
and County of San Francisco, State of California (the “Building”)

 

Ladies and Gentlemen:

 

You are hereby notified that ________________________,
a __________________ (the “Owner”), as owner of the Building and the current owner of the landlord’s
interest under the Lease, has sold the Building to _________________ (“Buyer”) as of the date of this
letter set forth above, and in connection with such sale the Owner has assigned and transferred its interest in the Lease and the
security deposits held by it thereunder to Buyer, and Buyer has assumed and agreed to perform all of the landlord’s obligations
under the Lease (including any obligations set forth in the Lease to repay or account for such security deposits) from and after
such date. Accordingly, (a) all of your obligations under the Lease from and after the date of this letter (including your obligations
to pay rent and fulfill your insurance requirements) shall be performable to and for the benefit of Buyer, its successors and assigns
and (b) all of the obligations of the landlord under the Lease (including any obligations to repay or account for any such security
deposits thereunder) from and after the date of this letter shall be the binding obligations of Buyer and its successors and assigns.

 

The address of Buyer for purposes of payments
or rentals under the Lease is:

 

	 	 	 
	 	 	 
	 	 	 

	 	Facsimile No.	 	 
	 	Telephone No.	 	 

 

All inquiries regarding your Lease and the
leased premises should be made to ______________ at the following address:

 

	 	 	 
	 	 	 
	 	 	 

	 	Facsimile No.	 	 
	 	Telephone No.	 	 

 

    	 	H-1	 

     

    

 

	 	Very truly yours,	 
	 	 	 
	 	OWNER:	 
	 	 	 
	 	_______________________,	 
	 	a _______________________	 
	 	 	 
	 	By:	 	 
	 	Name:	 	 
	 	Title:	 	 

 

    	 	H-2	 

     

    

 

EXHIBIT “I”

 

Owner’s
Affidavit

 

San Francisco County, California

Order/File No. _________________________

That certain real property described on Exhibit “A”
attached hereto (the “Real Property”)

 

OWNER’S DECLARATION

 

The undersigned (hereafter “Owner”)
does hereby state that the following facts and statements are true and correct to its actual knowledge:

 

1.          That
the person executing this Declaration is fully authorized and qualified to make this Declaration on Owner’s behalf;

 

2.          That
during the period of ninety (90) days immediately preceding the date of this declaration no work has been done and no materials
have been furnished in connection with the erection, repair, protection or removal of any building or other structure on the Real
Property or in connection with the improvement of the Real Property, except ________________________________________________.

 

3.          That
the Real Property is currently in use as a retail condominium; and that the following are all of the persons or entities having
leases or other occupancy rights affecting the Real Property: See Exhibit “B” attached hereto.

 

4.          That
there are no outstanding options or rights of first refusal to purchase the Real Property.

 

5.          Seller
is not a wholesaler or retailer of perishable agricultural commodities, produce, poultry, poultry products, livestock or meat products,
and has no direct or indirect relationship (other than the relationship of landlord to tenant) to the following tenants currently
occupying portions of the Property: [ADD RESTAURANTS, GROCERS, FOOD/PERISHABLE VENDORS].

 

This declaration is made with the intention
that First American Title Insurance Company (the “Company”) and its policy issuing agents will rely upon
it in issuing their title insurance policies and endorsements. Owner agrees to indemnify the Company against loss or damage (including
attorneys’ fees, expenses, and costs) incurred by the Company as a result of any statement made herein by Owner, as qualified
by Owner’s actual knowledge, being untrue.

 

    	 	I-1	 

     

    

 

Owner declares under penalty of perjury that the foregoing is true
and correct to its actual knowledge.

 

Dated this ____ day of __________, 2016.

 

	 	OWNER:
	 	 
	 	______________________________,
	 	a __________________________

 

	 	By:	 	 
	 	Name:	 	 
	 	Title:	 	 

 

    	 	I-2	 

     

    

 

EXHIBIT “A”
to Owner’s Affidavit

 

THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY AND COUNTY
OF SAN FRANCISCO, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS:

 

    	 	I-3	 

     

    

 

EXHIBIT “B”
to Owner’s Affidavit

 

    	 	I-4	 

     

    

 

EXHIBIT “J”

 

LIST OF SELLER
DISCLOSURES

 

See attached.

 

    	 	J-1	 

     

    

 

EXHIBIT “K”

 

LIST OF LEASES

 

Lease dated May 1, 2015 with Go Sake Ventures II, LLC

 

Lease dated May 28, 2015 with Go Sake Ventures III, LLC

 

Lease dated July 8, 2015 with Boba Guys, Inc.

 

    	 	K-1	 

     

    

 

EXHIBIT “L”

 

Intentionally
deleted

 

    	 	L-1	 

     

    

 

EXHIBIT “M”

 

FORM OF CC&R
ESTOPPEL CERTIFICATE

 

[SUBJECT
TO REVISION FOLLOWING REVIEW OF CC&Rs]

 

	To:	 	 	 
	 	 	 	 
	Dated:	 	 	 

 

Re:       Declaration
of Covenants and Restrictions of the ______________ Association dated as of _______________, recorded in the Official Records of
San Francisco County, California (the “Official Records”) on _____________ as Instrument No. ____________ (the
“Original CC&Rs”), as amended or assigned by (a) that certain ___________________ of the _____________ Association
dated as of _______________, recorded in the Official Records on __________ as Instrument No. __________, and (b) that certain
Assignment of ___________ dated _____________, recorded in the Official Records on _______________ as Instrument No. ____________
(as amended and assigned, the “CC&Rs”)

 

Ladies and Gentlemen:

 

The undersigned (the “Association”)
has the full right, power and authority to execute and deliver this estoppel certificate. Terms not otherwise defined herein shall
have the meaning given thereto in the CC&Rs. The property more particularly described in Exhibit A attached hereto (the
“Property”) is currently owned by __________________ (“Owner”) and is subject to the CC&Rs
and is part of the planned unit development of which the Property is a part (the “CID”). The undersigned understands
that the above addressee (“Buyer”) intends to acquire the Property and will be relying on this estoppel certificate
in doing so. Accordingly, as of the date hereof, the undersigned, in accordance with Section ________ of the Original CC&Rs,
hereby certifies and represents to Buyer, and its lender, Keybank National Association (and its and their successors and assigns),
and Owner (and its successors and assigns), as follows:

 

1.          The
CC&Rs are valid, enforceable, and in full force and effect and have not been modified, supplemented, amended, terminated or
superseded except as expressly set forth above.

 

2.          True,
correct and complete copies of the [Association Documents] [TO BE DEFINED]
are attached hereto as Exhibit B. The Association Documents are in full force and effect and have not been modified, supplemented,
amended, terminated or superseded except as expressly set forth above.

 

3.          There
are no use agreements, maintenance agreements or other agreements regarding use rights and maintenance obligations between the
Association and the original Declarant under the CC&Rs (or any successor thereto) that is currently in force affecting the
Property, other than the following:_______________________________________________________________________.

 

4.          To
the Association’s actual knowledge, there are no defaults existing under the CC&Rs as the same apply to the Property.

 

5.          As
of the date hereof, the aggregate amount of the fees, assessments, maintenance expenses, and other charges which are or could become
a lien or encumbrance on or against the Property or an obligation of Owner is $________ and such fees, maintenance expenses and
other charges have been paid through ________________, 2016.

 

6.          Association
is presently entitled to no offsets, credit, or claims against assessments owed under the CC&Rs with respect to the Property.

 

7.          There
are no liens being asserted or capable of being asserted against the Property by the undersigned under the CC&Rs.

 

    	 	M-1	 

     

    

 

8.          The
CID is a mixed use residential and commercial project governed jointly under the CC&R’s by the Association.

 

9.          No
tenant or owner within the CID has asserted or alleged any claim related to any defect in the construction or condition of any
part of the common area of the CID or any improvements comprising part of the CID.

 

10.         All
insurance required under the CC&R’s is in full force and effect. The owner of the Property is an additional insured under
such insurance to the extent of its interest in the Property.

 

11.         There
is no pending or to the knowledge of the Association, threatened litigation, arbitration or other dispute resolution proceeding
involving the CID or under the CC&R’s, except as follows: __________________________________________________.

 

12.         No
special assessments or levies under the CC&R’s have been adopted by the Association and to the Association’s knowledge
no such special assessment or levy is contemplated.

 

13.         Attached
hereto as Exhibit C are: (i) a true and correct copy of the [HOA Budget] for calendar year 2016, (ii) a true and correct
copy of the [HOA 2015 Income and Expense Statement], and (iii) a true and correct copy of [Reserve Study].

 

Each individual executing this estoppel certificate
represents and warrants that such individual has been duly and validly authorized to do so. This estoppel certificate shall be
binding on the undersigned and its successors and assigns and shall inure to the benefit of Buyer, and its lender, Keybank National
Association (and its and their successors and assigns), and Owner (and its successors and assigns).

 

	 	 	 
	a _______________________	 	 
	 	 	 
	By:	 	 	 
	 	 	 	 
	Name:	 	 	 
	 	 	 	 
	Title:	 	 	 

 

    	 	M-2	 

     

    

 

EXHIBIT A

 

LEGAL DESCRIPTION

 

    	 	M-3	 

     

    

 

EXHIBIT B

 

COPIES
OF ASSOCIATION DOCUMENTS

 

    	 	M-4	 

     

    

 

EXHIBIT C

 

COPIES
OF ASSOCIATION FINANCIAL DOCUMENTS

 

    	 	M-5	 

     

    

 

AGREEMENT OF
PURCHASE AND SALE

AND JOINT ESCROW INSTRUCTIONS

 

by and between

 

OCTAVIA GATEWAY
HOLDINGS, LLC, as Seller,

 

and

 

SRT SF Retail
I, LLC, as Buyer

 

     

     

    

 

Table of
Contents

 

	 	 	Page
	 	 	 
	1.	Purchase and Sale	1
	 	 	 
	2.	Purchase Price	1
	 	 	 
	3.	Escrow	2
	 	 	 
	4.	Buyer’s Investigations	2
	 	 	 
	5.	Conditions to the Close of Escrow	4
	 	 	 
	6.	Deliveries to Escrow Holder	7
	 	 	 
	7.	Deliveries Upon Close of Escrow	7
	 	 	 
	8.	Costs and Expenses	8
	 	 	 
	9.	Prorations	8
	 	 	 
	10.	Disbursements and Other Actions by Escrow Holder	10
	 	 	 
	11.	AS-IS Sale and Purchase; Release	10
	 	 	 
	12.	Seller’s Representations and Warranties	13
	 	 	 
	13.	Buyer’s Representations and Warranties	14
	 	 	 
	14.	Seller Covenants	15
	 	 	 
	15.	Casualty and Condemnation	15
	 	 	 
	16.	Notices	16
	 	 	 
	17.	Commissions	17
	 	 	 
	18.	Legal and Equitable Enforcement of this Agreement	18
	 	 	 
	19.	Assignment	19
	 	 	 
	20.	Confidentiality	20
	 	 	 
	21.	Miscellaneous	20

 

 

     -i-

     

    

 

Glossary

 

	Additional Deposit	2
	Affiliate	21
	Agreement	1
	Approval Notice	4
	Association	3
	Bill of Sale	7
	Business Day	21
	Buyer	1
	BUYER’S POST-CLOSING CLAIMS	18
	Claims	13
	Close of Escrow	7
	Closing Date	2
	Consultant	4
	Contingency Date	3
	Current Tax Year	9
	Deed	7
	Deposit	2
	Disclosure Items	13
	Disclosure Report	12
	Due Diligence	3
	Effective Date	1
	Escrow Holder	1
	Escrow Instructions	2
	Excluded Documents	2
	General Assignment	7
	Governmental Regulations	11
	Hazardous Materials	11
	Independent Consideration	2
	Initial Deposit	1
	Initial Deposit Deadline	1
	Intangible Property	1
	Lease Inducement Costs	9
	Lease Year	8
	Leases	1
	Material Damage	16
	Materially Damaged	16
	Percentage Rents	8
	Permitted Exceptions	5
	Person	21
	Personal Property	1
	Property	1
	PTR	5
	PURCHASE DOCUMENTS	18
	Purchase Price	1
	Real Property	1
	RECOURSE NOTICE	18
	Reimbursable Tenant Expenses	9
	Rents	8
	Required Estoppels	3
	Seller	1
	Seller’s Documents	2
	Seller’s Estimated Reimbursable Tenant Expenses	9
	SELLER’S UNDERTAKINGS	18
	Subject Lease Year	8
	Title Company	5
	Title Disapproval	5
	Title Policy	5
	Uncollected Rents	8

 

     -i-

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