Document:

Houma Crossing PSA - Exhibit 10.3

Exhibit 10.3

PURCHASE AND SALE AGREEMENT
BETWEEN
HOUMA CROSSING, LTD.
AS SELLER
AND
ARCP ACQUISITIONS, LLC
AS PURCHASER
DATED September 24, 2014

PURCHASE AND SALE AGREEMENT 
Houma Crossing - Houma, Louisiana
This Purchase and Sale Agreement (this "Agreement") is made and entered into by and between Purchaser and Seller.
RECITALS
A.    Defined terms are indicated by initial capital letters.  Defined terms shall have the meaning set forth herein, whether or not such terms are used before or after the definitions are set forth.
B.    Purchaser desires to purchase the Property and Seller desires to sell the Property, all upon the terms and conditions set forth in this Agreement.
NOW, THEREFORE, in consideration of the mutual terms, provisions, covenants and agreements set forth herein, as well as the sums to be paid by Purchaser to Seller, and for other good and valuable consideration, the receipt and sufficiency of which are acknowledged, Purchaser and Seller agree as follows:
ARTICLE 1BASIC INFORMATION
	
		
	1.1.1    Seller:
	HOUMA CROSSING, LTD., a Texas limited partnership

	1.1.2    Purchaser:
	ARCP ACQUISITIONS, LLC, a Delaware limited liability company

	1.1.3    Purchase Price:  
	$24,650,000.00

	1.1.4    Earnest Money:
	$475,000.00 (the "Earnest Money"), including interest thereon, to be deposited in accordance with Section 3.1 below, plus interest thereon, pursuant to Section 3.1.  Seller and Purchaser expressly agree that the Earnest Money shall be considered a deposit and shall not be considered earnest money in accordance with the provisions of Louisiana Civil Code Article 2624.

	1.1.5    Title Company:
	Republic Title of Texas, Inc.
550 Bailey Avenue, Suite 100
Fort Worth, Texas  76107
Attention: Janet Ceron
Telephone: 817-810-1001
E-mail: janetceron@republictitle.com

	1.1.6    Escrow Agent:
	The Title Company

	1.1.7    Broker:
	Jones Lang LaSalle
Attention: Jack Crews, Managing Director
8343 Douglas Avenue
Dallas, Texas 75225
Telephone: 214-438-6150
Facsimile: 214-763-3579
E-mail: jack.crews@am.jll.com

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	1.1.8    Effective Date:
	The date on which this Agreement is executed by the latter to sign of Purchaser or Seller, as indicated on the signature page of this Agreement.  If the execution date is left blank by either Purchaser or Seller, the Effective Date shall be the execution date inserted by the other party.

	1.1.9    Intentionally Deleted.
	 

	1.1.10    Title Commitment Delivery Date:
	Purchaser acknowledges the Title Commitment was delivered prior to the Effective Date.

	1.1.11    Title and Survey Review Period:
	Purchaser and Seller acknowledge the Title and Survey Review Period expired prior to the Effective Date.

	1.1.12    Inspection Period:
	The period ending on the Effective Date.

	1.1.13    Closing Date:
	September 26, 2014, subject to extension as provided in this Agreement; provided, however, Purchaser shall be entitled to extend such date of Closing for one (1) period of up to fifteen (15) business days by giving written notice of such election to Seller not less than two (2) business days prior to the scheduled date for Closing.

Section 1.2    Closing Costs.  Closing costs shall be allocated and paid as follows:
	
		
	

COST
	RESPONSIBLE PARTY

	Title Commitment required to be delivered pursuant to Section 5.1.
	Purchaser

	Premium for Title Policy required to be delivered pursuant to Section 5.4.
	Purchaser

	Premium for any upgrade of Title Policy for any additional coverage and any endorsements desired by Purchaser, any inspection fee charged by the Title Company, tax certificates, municipal and utility lien certificates, and any other Title Company charges
	Purchaser

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

	Costs for UCC searches and related searches
	Purchaser

	Recording fees
	Purchaser

	Any transfer taxes, deed taxes, documentary stamps, transfer taxes, intangible taxes or other similar taxes, fees or assessments
	Seller

	Any escrow fee charged by Escrow Agent for holding the Earnest Money or conducting the Closing
	Purchaser: 1⁄2
Seller: 1⁄2

	Real Estate Sales Commission to Broker
	Seller

	All other closing costs, expenses, charges and fees
	Local Custom

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Section 1.3    Notice Addresses:
	
		
	Purchaser:
ARCP Acquisitions, LLC
2325 East Camelback Road, Suite 1100
Phoenix, Arizona  85016 
Attention: Daniel T. Haug, Esq. 
Telephone: 602-778-6000
E-mail: dhaug@ARCPREIT.com

	Copy to:
Morris, Manning & Martin, LLP
1600 Atlanta Financial Center
3343 Peachtree Road, NE
Atlanta, Georgia 30326
Attention: Andrew C. Williams
Telephone: 404-233-7000
E-mail: awilliams@mmmlaw.com

	Seller:
Woodmont Houma GP, L.L.C.
2100 West 7th Street 
Fort Worth, Texas 76107 
Attention: Stephen Coslik
Telephone: 817-732-4000
E-mail: scoslik@woodmont.com

	Copy to:
L&B Realty Acquisitions, Inc. 
8750 N. Central Expressway, Suite 800 
Dallas, Texas 75231-6437
Attention:  Tracie Forsythe
Telephone: 214-989-0652
E-mail: tforsythe@lbrealty.com

With an additional copy to:
Winstead PC
300 Throckmorton St., Suite 1700
Fort Worth, Texas  76102
Attention: Noelle L. Garsek, Esq.
Telephone: 817-420-8212
E-mail: ngarsek@winstead.com

	 
	 

ARTICLE 2 
PROPERTY
Section 2.1    Property.  Subject to the terms and conditions of this Agreement, Seller agrees to sell to Purchaser, and Purchaser agrees to purchase from Seller, the following property (collectively, the "Property"):
2.1.1    Real Property.  The land located in Houma, Terrebonne Parish, Louisiana, more particularly described in Exhibit A attached hereto (the "Land"), together with (a) all improvements located thereon, but expressly excluding improvements and structures owned by any tenant ("Improvements"), (b) without warranty, all right, title and interest of Seller, if any, in and to the rights, benefits, privileges, easements, tenements, hereditaments, and appurtenances thereon or in anywise appertaining thereto, (c) without warranty, all right, title, and interest of Seller, if any, in and to all strips and gores and any land lying in the bed of any street, road or alley, open or proposed, adjoining the Land, and (d) without warranty, any right, title and interest of Seller, if any, in and to any and all oil, gas and minerals lying under, in, on or about or constituting a part of the Land (collectively, the "Real Property").  
2.1.2    Leases.  All of Seller's right, title and interest, without warranty, in all leases of the Real Property (other than License Agreements), including leases which may be made by Seller after the Effective Date and prior to Closing as permitted by this Agreement (the "Leases"), and all guaranties thereof.

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2.1.3    Tangible Personal Property.  All of Seller's right, title and interest, without warranty, in the equipment, machinery, furniture, furnishings, supplies and other tangible personal property, if any, owned by Seller and now or hereafter located in and used in connection with the operation, ownership or management of the Real Property, but specifically excluding any items of personal property owned or leased by Seller's property manager or tenants at or on the Real Property and further excluding any items of personal property by third parties and leased to Seller (collectively, the "Tangible Personal Property").
2.1.4    Intangible Personal Property.  All of Seller's right, title and interest, if any, without warranty, in all of the following intangible personal property related to the Real Property and the Improvements: (i) all trade names and trademarks associated with the Real Property and the Improvements, including Seller's rights and interests, if any, in the name of the Real Property; (ii) the plans and specifications and other architectural and engineering drawings for the Improvements, if any (to the extent owned by Seller and assignable without cost to Seller); (iii) contract rights related to the operation, ownership or management of the Real Property, including maintenance, service, construction, supply and equipment rental contracts, if any, but not including Leases, License Agreements, leasing or listing agreements or management agreements (collectively, the "Service Contracts") (but only to the extent assignable without cost to Seller and only to the extent Seller's obligations thereunder are expressly assumed by Purchaser pursuant to this Agreement); (iv) warranties and guaranties (to the extent owned by Seller and assignable without cost to Seller); (v) governmental permits, approvals and licenses, if any (to the extent owned by Seller and assignable without cost to Seller); and (vi) telephone exchange numbers (to the extent owned by Seller and assignable without cost to Seller (all of the items described in this Section 2.1.4 collectively referred to as the "Intangible Personal Property").  Tangible Personal Property and Intangible Personal Property shall not include (a) any appraisals or other economic evaluations of, or projections with respect to, all or any portion of the Property, including, without limitation, budgets prepared by or on behalf of Seller or any affiliate of Seller, (b) any documents, materials or information which are subject to attorney/client, work product or similar privilege, which constitute attorney communications with respect to the Property and/or Seller, or which are subject to a confidentiality agreement, and (c) any trade name, mark or other identifying material that includes the names "Woodmont," "The Woodmont Company," "L&B Realty" or any derivatives thereof.
2.1.5    License Agreements.  All of Seller's right, title and interest, without warranty, in and to all agreements (other than Leases), if any, for the leasing or licensing of rooftop space or equipment, telecommunications equipment, cable access and other space, equipment and facilities that are located on or within the Real Property and generate income to Seller as the owner of the Real Property, including agreements which may be made by Seller after the Effective Date and prior to Closing as permitted by this Agreement (the "License Agreements").  Anything in this Agreement to the contrary notwithstanding, Purchaser shall assume the obligations of the "lessor" or "licensor" under all License Agreements, some or all of which may be non-cancelable.
ARTICLE 3 
EARNEST MONEY
Section 3.1    Deposit and Investment of Earnest Money.  Within three (3) business days after the Effective Date, Purchaser shall deposit the Earnest Money with Escrow Agent.  Escrow Agent shall invest the Earnest Money in government insured interest-bearing accounts satisfactory to Seller and Purchaser, shall not commingle the Earnest Money with any funds of Escrow Agent or others, and shall promptly provide Purchaser and Seller with confirmation of the investments made.  Such account shall have no penalty for early withdrawal, and Purchaser accepts all risks with regard to such account.

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Section 3.2    Independent Consideration.  If Purchaser elects to terminate this Agreement for any reason and is entitled to receive a return of the Earnest Money pursuant to the terms hereof, the Escrow Agent shall first disburse to Seller One Hundred and No/100 Dollars ($100.00) as independent consideration for Seller's performance under this Agreement ("Independent Consideration"), which shall be retained by Seller in all instances.
Section 3.3    Form; Failure to Deposit.  The Earnest Money shall be in the form of a certified or cashier's check or the wire transfer to Escrow Agent of immediately available U.S. federal funds.  If Purchaser fails to timely deposit the Earnest Money within the time period required, Seller may terminate this Agreement by written notice to Purchaser at any time prior to the actual receipt by Escrow Agent of such deposit from Purchaser, in which event the parties hereto shall have no further rights or obligations hereunder, except for rights and obligations which, by their terms, survive the termination hereof.
Section 3.4    Disposition of Earnest Money.  The Earnest Money shall be applied as a credit to the Purchase Price at Closing.  However, if Purchaser terminates this Agreement prior to the expiration of the Inspection Period pursuant to Section 4.4, Escrow Agent shall pay the entire Earnest Money (less the Independent Consideration) to Purchaser within one (1) business day following receipt of the Due Diligence Termination Notice from Purchaser (as long as the current investment can be liquidated and disbursed in one business day).  No notice to Escrow Agent from Seller shall be required for the release of the Earnest Money to Purchaser by Escrow Agent if Purchaser terminates this Agreement pursuant to Section 4.4.  In the event of a termination of this Agreement by either Seller or Purchaser for any reason other than pursuant to Section 4.4, Escrow Agent is authorized to deliver the Earnest Money to the party hereto entitled to same pursuant to the terms hereof on or before the tenth business day following receipt by Escrow Agent and the non-terminating party of written notice of such termination from the terminating party, unless the other party hereto notifies Escrow Agent that it disputes the right of the other party to receive the Earnest Money.  In such event, Escrow Agent may interplead the Earnest Money into a court of competent jurisdiction in the county in which the Earnest Money has been deposited.  All attorneys' fees and costs and Escrow Agent's costs and expenses incurred in connection with such interpleader shall be assessed against the party that is not awarded the Earnest Money, or if the Earnest Money is distributed in part to both parties, then in the inverse proportion of such distribution.
ARTICLE 4     
DUE DILIGENCE
Section 4.1    Due Diligence Materials To Be Delivered.  Prior to the Effective Date, Seller has delivered to Purchaser and/or posted on a website to which Purchaser has access (the "Due Diligence Website") the following (the "Property Information"):
4.1.1    Rent Roll.  A current rent roll ("Rent Roll") for the Property utilizing Seller's standard form;
4.1.2    Leases.  The Leases and all amendments, guaranties, letter agreements relating thereto, and assignments thereof;
4.1.3    Financial Information.  Copy of operating statements pertaining to the Property for the 12 months preceding the Effective Date or such lesser period as Seller has owned the Property ("Operating Statements");
4.1.4    Tax Statements.  Copy of ad valorem tax statements relating to the Property for the current tax period;

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4.1.5    Title and Survey.  Copy of Seller's most current title insurance information and survey of the Property;
4.1.6    Service Contracts.  A list of Service Contracts, together with copies thereof;
4.1.7    Personal Property.  A list of Tangible Personal Property;
4.1.8    License Agreements.  A list of any License Agreements, together with copies thereof;
4.1.9    Warranties.  Warranties, if any, on roofs, air conditioning units, fixtures and equipment;
4.1.10    Licenses, Permits and Certificates of Occupancy.  Licenses, permits and certificates of occupancy relating to the Property; and
4.1.11    Environmental Reports.  Copy of any final environmental assessments or engineering assessments of the Real Property and Improvements, including soils reports, prepared for Seller or its affiliates.
Except for the Rent Roll contemplated in Section 4.1.1, Seller's obligations to deliver the items listed in this Section 4.1 shall be limited to the extent such items are in the possession of Seller or its property management company.  
Seller shall have an ongoing obligation during the pendency of this Agreement to provide Purchaser with type of document or instrument described in Section 4.1 which is created or modified in any respect after the Effective Date.
Section 4.2    Due Diligence Materials To Be Made Available.  To the extent such items are in Seller's possession and control, Seller has made available to Purchaser for Purchaser's review, at Seller's option either on the Due Diligence Website, at the offices of Seller's property manager or at the Property, the following items and information (the "Additional Property Information"), and Purchaser at its expense shall have the right to make copies of same:
4.2.1    Lease Files.  The lease files for all tenants ("Lease Files"); and
4.2.2    Plans and Specifications.  Building plans and specifications relating to the Property.  Seller hereby informs Purchaser that Kohl's and Hobby Lobby performed the construction of their respective stores and Seller may not have plans, specifications, construction documents or warranties relating to their premises.
Section 4.3    Physical Due Diligence.  Commencing on the Effective Date and continuing until the Closing, Purchaser shall have reasonable access to the Property at all reasonable times during normal business hours, upon appropriate prior notice to tenants as permitted or required under the Leases, for the purpose of conducting reasonably necessary tests, including surveys and architectural, engineering, geotechnical and environmental inspections and tests as permitted under this Agreement, provided that (a) Purchaser must give Seller three (3) full business days' prior telephone or written notice of any such inspection or test, and with respect to any intrusive inspection or test, any "Phase II" type testing  or investigation or any testing scope that is beyond a customary "Phase I" investigation (i.e., no core sampling, soils testing, vapor testing, testing of on-site materials or other similar testing or investigation) must obtain 

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Seller's prior written consent (which consent may be given, withheld or conditioned in Seller's sole discretion), (b) prior to performing any inspection or test, Purchaser must deliver a certificate of insurance to Seller evidencing that Purchaser and its contractors, agents and representatives have in place reasonable amounts of commercial general liability insurance and workers compensation insurance for its activities on the Property in terms and amounts reasonably satisfactory to Seller covering any accident arising in connection with the presence of Purchaser, its contractors, agents and representatives on the Property, which insurance shall name Seller as an additional insured thereunder, and (c) all such tests shall be conducted by Purchaser in compliance with Purchaser's responsibilities set forth in Section 4.9 below.  Purchaser shall bear the cost of all such inspections or tests and shall be responsible for and act as the generator with respect to any wastes generated by those tests.  Subject to the provisions of Section 4.7 hereof, Purchaser or Purchaser's representatives may meet with any tenant; provided, however, Purchaser must contact Seller at least three (3) full business days in advance by telephone or in writing to inform Seller of Purchaser's intended meeting and to allow Seller the opportunity to attend such meeting if Seller desires.  Subject to the provisions of Section 4.7 hereof, Purchaser or Purchaser's representatives may meet with any governmental authority for the sole purpose of gathering information in connection with the transaction contemplated by this Agreement; provided, however, Purchaser must contact Seller at least two full business days in advance by telephone to inform Seller of Purchaser's intended meeting and to allow Seller the opportunity to attend such meeting if Seller desires.
Section 4.4    Due Diligence/Termination Right.  Purchaser shall have through 5:00 p.m. Dallas, Texas time on the last day of the Inspection Period in which to (a) examine, inspect, and investigate the Property Information and the Additional Property Information (collectively, the "Property Documents") and the Property and, in Purchaser's sole and absolute judgment and discretion, determine whether the Property is acceptable to Purchaser, (b) obtain all necessary internal approvals, and (c) satisfy all other contingencies of Purchaser.  Notwithstanding anything to the contrary in this Agreement, Purchaser may terminate this Agreement for any reason or no reason by giving written notice of termination to Seller and Escrow Agent (the "Due Diligence Termination Notice") prior to 5:00 p.m. Dallas, Texas on the last day of the Inspection Period.  If Purchaser does not timely give a Due Diligence Termination Notice, this Agreement shall continue in full force and effect, Purchaser shall be deemed to have waived its right to terminate this Agreement pursuant to this Section 4.4, and Purchaser shall be deemed to have acknowledged that it has received or had access to all Property Documents and conducted all inspections and tests of the Property that it considers important.  Notwithstanding anything to the contrary set forth herein, Purchaser acknowledges that Inspection Period has expired and that by delivering an executed copy of this Agreement to Seller, Purchaser has waived its right to deliver a Due Diligence Termination Notice.
Section 4.5    Return of Documents and Reports.  Upon any termination of this Agreement (other than arising out of a Seller default hereunder), Purchaser shall provide to Seller copies of all third party reports, investigations and studies, other than economic analyses and other than legal analysis memoranda (collectively, the "Reports" and, individually, a "Report") prepared for Purchaser in connection with its due diligence review of the Property, including, without limitation, any and all Reports involving structural or geological conditions, environmental, hazardous waste or hazardous substances contamination of the Property, if any.  The Reports shall be delivered to Seller without any liability to Seller and without representation or warranty from Purchaser as to the completeness or accuracy of the Reports or any other matter relating thereto.  Purchaser's obligation to deliver the Property Documents and the Reports to Seller shall survive the termination of this Agreement.
Section 4.6    Service Contracts.  On or prior to 5:00 p.m. Dallas, Texas on the last day of the Inspection Period, Purchaser will advise Seller in writing of which Service Contracts it will assume and for which Service Contracts Purchaser requests that Seller deliver written termination at or prior to Closing, 

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provided Seller shall have no obligation to terminate, and Purchaser shall be obligated to assume, any Service Contracts which by their terms cannot be terminated without penalty or payment of a fee in excess of $15,000 in amount.  Seller shall deliver at Closing notices of termination of all Service Contracts that are not so assumed.  Purchaser must assume the obligations arising from and after the Closing Date under those Service Contracts (a) that Purchaser has agreed to assume, or that Purchaser is obligated to assume pursuant to this Section 4.6, and (b) for which a termination notice is delivered as of or prior to Closing but for which termination is not effective until after Closing; provided, however, any termination fee or penalty relating to a termination of a Service Contract pursuant to this Section 4.6 shall remain the responsibility of Seller to the extent set forth in this Section 4.6.
Section 4.7    Proprietary Information; Confidentiality.  Purchaser acknowledges that the Property Documents are proprietary and confidential and will be delivered to Purchaser solely to assist Purchaser in determining the feasibility of purchasing the Property.  Purchaser shall not use the Property Documents for any purpose other than as set forth in the preceding sentence.  Purchaser shall not disclose the contents to any person other than to those persons who are responsible for determining the advisability or feasibility of Purchaser's acquisition and financing of the Property, or who are considering investing in or financing Purchaser's acquisition of the Property, and who have agreed to preserve the confidentiality of such information as required hereby (collectively, "Permitted Outside Parties").  At any time and from time to time, within two business days after Seller's request, Purchaser shall deliver to Seller a list of all parties to whom Purchaser has provided any Property Documents or any information taken from the Property Documents.  Notwithstanding the foregoing, Purchaser may disclose such contents as (a) expressly required under applicable laws or (b) expressly required by appropriate written judicial order, subpoena or demand issued by a court of competent jurisdiction (but will first give Seller written notice of the requirement and will cooperate with Seller so that Seller, at its expense, may seek an appropriate protective order and, in the absence of a protective order, Purchaser may disclose only such content as may be necessary to avoid any penalty, sanction, or other material adverse consequence, and Purchaser will use reasonable efforts to secure confidential treatment of any such content so disclosed).  Further, notwithstanding the foregoing, Purchaser and the Permitted Outside Parties shall not be obligated to keep confidential any Property Documents or information contained in any Property Documents that (i) is already in the public domain, (ii) is or becomes generally available to the public other than as a result of a disclosure by Purchaser or any Permitted Outside Party, or (iii) is or becomes available to Purchaser or any Permitted Outside Party on a non-confidential basis from a source other than Seller who, to Purchaser's or such Permitted Outside Party's knowledge, is not subject to a confidentiality agreement with Seller prohibiting such disclosure.  Purchaser, using the same degree of care with respect to the Property Documents as Purchaser employs with respect to its own proprietary or confidential information, shall not divulge the contents of the Property Documents and other information except in strict accordance with the confidentiality standards set forth in this Section 4.7.  In permitting Purchaser to review the Property Documents or any other information, Seller has not waived any privilege or claim of confidentiality with respect thereto, and no third party benefits or relationships of any kind, either express or implied, have been offered, intended or created.  As used hereunder, the term "Permitted Outside Parties" shall not include Seller's existing mortgage lender and Purchaser shall not deliver to Seller's existing mortgage lender any information relating to the Property unless approved by Seller in writing, in Seller's sole and absolute discretion.  If Purchaser has previously executed a confidentiality agreement for the benefit of Seller and such confidentiality agreement remains in effect during the term of this Agreement, and there is any conflict between the terms of this Section 4.7 and such confidentiality agreement, the more restrictive provisions limiting the disclosure of information shall prevail.
Section 4.8    No Representation or Warranty by Seller.  Purchaser acknowledges that, except as expressly set forth in this Agreement, Seller has not made and does not make any warranty or representation regarding the truth, accuracy or completeness of the Property Documents or the source(s) thereof.  Purchaser 

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further acknowledges that some if not all of the Property Documents were prepared by third parties other than Seller.  Except as expressly set forth in this Agreement, Seller expressly disclaims any and all liability for representations or warranties, express or implied, statements of fact and other matters contained in such information, or for omissions from the Property Documents, or in any other written or oral communications transmitted or made available to Purchaser.  Subject to the express representations and warranties of Seller set forth in this Agreement, Purchaser shall rely solely upon its own investigation with respect to the Property, including, without limitation, the Property's physical, environmental or economic condition, compliance or lack of compliance with any ordinance, order, permit or regulation or any other attribute or matter relating thereto.  Subject to the express representations and warranties of Seller set forth in this Agreement, Seller has not undertaken any independent investigation as to the truth, accuracy or completeness of the Property Documents and are providing the Property Documents solely as an accommodation to Purchaser.
Section 4.9    Purchaser's Responsibilities.  In conducting any inspections, investigations or tests of the Property and/or Property Documents, Purchaser and its agents and representatives shall:  (a) not disturb the tenants or interfere with their use of the Property pursuant to their respective Leases; (b) not interfere with the operation and maintenance of the Property; (c) not damage any part of the Property or any personal property owned or held by any tenant or any third party; (d) not injure or otherwise cause bodily harm to Seller or its agents, guests, invitees, contractors and employees or any tenants or their guests or invitees; (e) comply with all applicable laws; (f) promptly pay when due the costs of all tests, investigations, and examinations done with regard to the Property; (g) not permit any liens to attach to the Real Property by reason of the exercise of its rights hereunder; and (h) repair any damage to the Real Property resulting directly or indirectly from any such inspection or tests.
Section 4.10    Purchaser's Agreement to Indemnify.  Purchaser hereby agrees to indemnify, defend and hold Seller and Seller's property manager harmless from and against any and all liens, claims, causes of action, damages, liabilities and expenses (including reasonable attorneys' fees) arising out of Purchaser's inspections or tests permitted under this Agreement or any violation of the provisions of Section 4.3, Section 4.7 and Section 4.9; provided, however, the indemnity shall not extend to protect Seller from any pre-existing liabilities for matters merely discovered by Purchaser (i.e., latent environmental contamination) so long as Purchaser's actions do not aggravate any pre-existing liability of Seller (and then only to the extent thereof).  Purchaser also hereby agrees to indemnify, defend and hold Seller harmless from and against any and all claims, causes of action, damages, liabilities and expenses asserted against Seller by any tenant due to Purchaser's breach of its obligation under Section 4.7 above to maintain the confidential nature of any Property Documents or other information relative to such tenant.  Purchaser's obligations under this Section 4.10 shall survive the termination of this Agreement and shall survive the Closing.
Section 4.11    Environmental Studies; Seller's Right to Terminate.  As additional consideration for the transaction contemplated in this Agreement, Purchaser must provide to Seller, immediately following the receipt of same by Purchaser, copies of any and all reports, tests or studies involving contamination of or other environmental concerns relating to the Property; provided, however, Purchaser shall have no obligation to cause any such tests or studies to be performed on the Property.  Seller acknowledges that Purchaser has not made and does not make any warranty or representation regarding the truth or accuracy of any such studies or reports.  Notwithstanding Section 4.10 above, Purchaser shall have no liability or culpability of any nature as a result of having provided such information to Seller or as a result of Seller's reliance thereon or arising out of the fact that Purchaser merely conducted such tests or studies, so long as Purchaser's actions do not aggravate any pre-existing liability of Seller (and then only to the extent thereof).  In the event that such reports, tests or studies indicate the existence or reasonable potential existence of any contamination of any portion of the Property that is not disclosed in the Property Documents and that is material (meaning that the reasonably estimated cost of remediation and/or other liability associated 

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therewith, as determined by Seller's environmental consultants, exceeds $50,000.00), then Seller may terminate this Agreement by giving written notice to Purchaser within ten business days after Purchaser has provided Seller with copies of such reports, tests or studies, whereupon the Earnest Money shall be returned to Purchaser, the parties shall have no further obligations hereunder except for obligations that expressly survive the termination hereof, and Seller shall pay to Purchaser an amount equal to the lesser of (a) Purchaser's actual out-of-pocket expenditures incurred directly in connection with negotiating this Agreement and/or conducting due diligence activities contemplated hereunder, or (b) One Hundred Thousand and No/100 Dollars ($100,000.00), provided, however, that Purchaser must make written demand of Seller for such reimbursement and provide Seller reasonable supporting documentation of actual expenditures within 30 days of the termination of this Agreement, and if Purchaser fails to provide such written demand and supporting documentation within such 30-day period, then Purchaser shall be deemed to have forever waived its right to recover any amount from Seller.
Section 4.12    Rights of First Refusal.  If any of the Leases contain tenant rights of first refusal or rights of first offer to purchase the Property (either such right, a "ROFR"), Seller shall deliver a written right of first refusal or offer notice to the applicable Tenant in accordance with the requirements of the applicable ROFR within five (5) days after receipt of written request from Purchaser specifying the applicable Tenant and ROFR.  Seller agrees that if any Tenant gives notice of its intent to exercise its ROFR under its Lease or does actually exercise such ROFR, this Agreement shall be deemed to terminate, provided that Purchaser shall receive a full return of the Earnest Money.
ARTICLE 5 
TITLE AND SURVEY
Section 5.1    Title Commitment.  Seller shall cause to be prepared and delivered to Purchaser on or before the Title Commitment Delivery Date: (a) a current commitment for title insurance or preliminary title report (the "Title Commitment") issued by the Title Company, in the amount of the Purchase Price and on an ALTA 6-17-06 Standard Form commitment, with Purchaser as the proposed insured, and (b) copies of all documents of record referred to in the Title Commitment as exceptions to title to the Property.
Section 5.2    Survey.  Purchaser may elect to obtain a new survey or revise, modify, or re-certify an existing survey ("Survey") as necessary in order for the Title Company to delete the survey exception from the Title Policy or to otherwise satisfy Purchaser's objectives.  Purchaser shall be solely responsible for the cost of the Survey.  Purchaser shall deliver a copy of the Survey to Seller in order for Seller to respond to the Title Objections.
Section 5.3    Title Review.  During the Title and Survey Review Period, Purchaser shall review title to the Property as disclosed by the Title Commitment and the Survey and may object in writing to any liens, encumbrances, and other matters reflected by the Title Commitment or Survey.  All such matters to which Purchaser timely objects in writing shall be "Title Objections"; if no such objection notice is given during the Title and Survey Review Period, except as otherwise provided below, all matters reflected by the Survey and Title Commitment, and any matters not included in the Title Objections, shall constitute "Permitted Exceptions" hereunder; provided, however, in no event shall Purchaser be deemed to have agreed to accept title subject to financing liens and security interests against the Property.  Seller may, but shall not be obligated to, at its sole cost and expense, cure, remove or insure around any Title Objections and may give Purchaser written notice thereof within five (5) days after the Title and Survey Review Period expires; provided, however, Seller shall have no obligation to cure any Title Objections except security interests and financing liens of an ascertainable amount created by, under or through Seller, which liens Seller shall cause to be released at or prior to Closing (with Seller having the right to apply the Purchase 

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Price or a portion thereof for such purpose), and Seller shall deliver the Property free and clear of any such liens.  Seller further agrees to remove any exceptions or encumbrances to title which are voluntarily created by, under or through Seller after the Effective Date in violation of this Agreement without Purchaser's consent.  If during such 5-day period Seller does not cause, or does not unequivocally agree in writing during such 5-day period to cause prior to Closing, any of the Title Objections to be removed, cured or otherwise omitted from Purchaser's Title Commitment, then Seller will be deemed to have elected to not cure such Title Objections and Purchaser may, at its election exercised prior to the expiration of the Inspection Period, (a) terminate this Agreement and recover the Earnest Money by providing written notice of termination to Seller prior to the end of the Inspection Period, and neither Purchaser nor Seller shall have any obligations under this Agreement except those that expressly survive the termination of this Agreement, or (b) waive such Title Objections and purchase the Property subject to such Title Objections (other than liens that Seller is expressly obligated under this Agreement to cure, remove or insure around), in which event such Title Objections shall thereafter constitute Permitted Exceptions.  If Purchaser fails to timely make such election, Purchaser will be deemed to have elected option (b) above.  In all events, Purchaser's right to terminate this Agreement pursuant to this Section 5.3 shall expire upon the expiration of the Inspection Period.  The term "Permitted Exceptions" shall mean: (i) the specific exceptions (excluding exceptions that are part of the promulgated title insurance form) in the Title Commitment that the Title Company has not agreed to remove from the Title Commitment as of the end of the Title and Survey Review Period and that Seller is not required or has not agreed to remove as provided above; (ii) matters created by, through or under Purchaser; (iii) items shown on the Survey which have not been removed as of the end of the Inspection Period (or if Purchaser does not obtain a Survey, all matters that a current, accurate survey of the Property would show); (iv) real estate taxes not yet due and payable; (v) rights of tenants under the Leases; (vi) rights of tenants or licensees under License Agreements; (vii) any licensees under any Service Contracts not terminated as of Closing; and (viii) the declarations and restrictive covenants filed of record with respect to the Property relating to the Kohl's store located within the Property (the "Kohl's REA") and the Academy Sports & Outdoors store located in the vicinity of the Property (the "Academy Declaration").
Section 5.4    Delivery of Title Policy at Closing.  In the event that the Title Company does not issue at Closing, or unconditionally commit at Closing to issue, to Purchaser, an owner's title policy in accordance with the Title Commitment, insuring Purchaser's title to the Property in the amount of the Purchase Price, subject only to the Permitted Exceptions (the "Title Policy"), Purchaser shall have the right to terminate this Agreement, in which case the Earnest Money shall be immediately returned to Purchaser and the parties hereto shall have no further rights or obligations, other than those that by their terms survive the termination of this Agreement.
Section 5.5    REA Estoppels.  Upon the written request of Purchaser, Seller shall request estoppel certificates ("REA Estoppels") from the applicable parties to the Kohl's REA and the Academy Declaration.  In connection with Purchaser's review of title matters pursuant to Section 5.1 above, Purchaser shall advise Seller of, and provide the form of, any such REA Estoppels which Purchaser requests Seller to attempt to obtain.  The REA Estoppels shall be in the form required or permitted by the Kohl's REA and the Academy Declaration as applicable.  Seller shall not be obligated to expend any funds in connection with obtaining any such REA Estoppels, and the failure of Seller to obtain any such REA Estoppels shall not be a breach or default hereunder, nor shall it be a condition to Closing.
Section 5.6    Warranties.  Notwithstanding anything contained herein to the contrary, whenever the term "without warranty" is used, it shall mean a sale without warranty of title, not even for return of the Purchase Price or any portion thereof, other than to the acts of Seller and the acts of those claiming by, through or under Seller, which warranty is not waived, and with full subrogation and substitution in and to all of Seller's rights and actions of warranty against previous owners and vendors.

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ARTICLE 6 
OPERATIONS AND RISK OF LOSS
Section 6.1    Ongoing Operations.  From the Effective Date through Closing:
6.1.1    Leases, Service Contracts and License Agreements.  Seller will perform its material obligations under the Leases, Service Contracts and License Agreements.
6.1.2    New Contracts.  Except as provided in Section 6.1.4, Seller will not enter into any contract that will be an obligation affecting the Property subsequent to the Closing, except contracts entered into in the ordinary course of business that are terminable without cause and without the payment of any termination penalty on not more than thirty (30) days' prior notice.
6.1.3    Maintenance of Improvements; Removal of Personal Property.  Subject to Section 6.2 and Section 6.3, Seller shall maintain or cause the tenants under the Leases to maintain all Improvements substantially in their present condition (ordinary wear and tear and casualty excepted) and in a manner consistent with Seller's maintenance of the Improvements during Seller's period of ownership.  Seller will not remove any material items of Tangible Personal Property except as may be required for necessary repair or replacement, and replacement shall be of approximately equal quality and quantity as the removed item of Tangible Personal Property.
6.1.4    Leasing; License Agreements.  During the term of this Agreement, Seller will not amend or terminate any existing Lease or License Agreement or enter into any new Lease or new License Agreement without Purchaser's approval.  If Purchaser's consent is requested by Seller as to any amendment or termination of a Lease or License Agreement, or as to a new Lease or new License Agreement, Purchaser agrees to give Seller written notice of approval or disapproval of a proposed amendment or termination of a Lease or License Agreement or new Lease or new License Agreement within five (5) business days after Purchaser's receipt of (a) all relevant supporting documentation, as reasonably determined by Seller, including, without limitation, tenant financial information to the extent in Seller's possession, and (b) Seller's request for Purchaser's approval.  If Purchaser does not respond to Seller's request within such time period, then Purchaser will be deemed to have approved such amendment, termination or new Lease or new License Agreement.  Purchaser's approval rights and obligations will vary depending on when the request for approval from Seller is delivered to Purchaser, as follows:
(1)    With respect to a request for approval delivered by Seller to Purchaser at least three (3) days before the expiration of the Inspection Period, Purchaser's consent shall not be unreasonably withheld, conditioned or delayed.
(2)    With respect to a request for approval delivered by Seller to Purchaser within three (3) days before the expiration of the Inspection Period, Purchaser may withhold its consent in its sole discretion.
Purchaser acknowledges that Seller was negotiating the terms of a proposed lease with Men's Wearhouse during the negotiation of this Agreement, which lease has been executed prior to the Effective Date.  Purchaser has approved the Lease Agreement dated September 9, 2014, between Seller, as landlord, and The Men's Wearhouse, Inc., a Texas corporation, as tenant (the "Men's Wearhouse Lease").
Section 6.2    Damage.  If prior to Closing the Property is damaged by fire or other casualty requiring repairs in excess of $25,000.00 to repair,  Seller shall estimate the cost to repair and the time 

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required to complete repairs and will provide Purchaser written notice of Seller's estimation (the "Casualty Notice") as soon as reasonably possible after the occurrence of the casualty.
6.2.1    Material.  In the event of any Material Damage to or destruction of the Property or any portion thereof prior to Closing, Purchaser may, at its option, terminate this Agreement by delivering written notice to Seller on or before the expiration of fifteen (15) days after the date Seller delivers the Casualty Notice to Purchaser (and if necessary, the Closing Date shall be extended to give Purchaser the full thirty-day period to make such election).  Upon any such termination, the Earnest Money shall be returned to Purchaser and the parties hereto shall have no further rights or obligations hereunder, other than those that by their terms survive the termination of this Agreement.  If Purchaser does not terminate this Agreement within said 30-day period, then the parties shall proceed under this Agreement and close on schedule (subject to extension of Closing as provided above), and as of Closing Seller shall assign to Purchaser, without representation or warranty by or recourse against Seller, all of Seller's rights in and to any resulting insurance proceeds (including any rent loss insurance applicable to any period on and after the Closing Date) due Seller as a result of such damage or destruction and Purchaser shall assume full responsibility for all needed repairs, and Purchaser shall receive a credit at Closing for any deductible amount under such insurance policies (but the amount of the deductible plus insurance proceeds shall not exceed the lesser of (a) the cost of repair or (b) the Purchase Price and a pro rata share of the rental or business loss proceeds, if any).  For the purposes of this Agreement, "Material Damage" and "Materially Damaged" means (i) damage which, in Seller's reasonable estimation, exceeds $500,000.00 to repair , and (ii) any damage which entitles any tenant to terminate its Lease or permanently abate its rent in whole or in part, except to the extent such rights are waived by the applicable tenants.
6.2.2    Not Material.  If the Property is not Materially Damaged, then neither Purchaser nor Seller shall have the right to terminate this Agreement, and Seller shall, at its option, either (a) repair the damage before the Closing in a manner reasonably satisfactory to Purchaser (and if necessary, Seller may extend the Closing Date up to 30 days to complete such repairs), or (b) credit Purchaser at Closing for the reasonable cost to complete the repair (in which case Seller shall retain all insurance proceeds and Purchaser shall assume full responsibility for all needed repairs).
Section 6.3    Condemnation.  If proceedings in eminent domain are instituted with respect to the Property or any material portion thereof, or a written notice of a proposed condemnation is received, Purchaser may, at its option, by written notice to Seller given within ten (10) days after Seller notifies Purchaser of such proceedings (and if necessary the Closing Date shall be automatically extended to give Purchaser the full 10-day period to make such election), either:  (a) terminate this Agreement, in which case the Earnest Money shall be immediately returned to Purchaser and the parties hereto shall have no further rights or obligations, other than those that by their terms survive the termination of this Agreement, or (b) proceed under this Agreement, in which event Seller shall, at the Closing, assign to Purchaser its entire right, title and interest in and to any condemnation award, and Purchaser shall have the sole right after the Closing to negotiate and otherwise deal with the condemning authority in respect of such matter.  If Purchaser does not give Seller written notice of its election within the time required above, then Purchaser shall be deemed to have elected option (b) above.
ARTICLE 7 
CLOSING
Section 7.1    Closing.  The consummation of the transaction contemplated herein ("Closing") shall occur on the Closing Date at the offices of Escrow Agent (or such other location as may be mutually agreed upon by Seller and Purchaser).  Funds shall be deposited into and held by Escrow Agent in a closing escrow account with a bank satisfactory to Purchaser and Seller.  Upon satisfaction or completion of all 

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closing conditions and deliveries, the parties shall direct Escrow Agent to immediately record and deliver the closing documents to the appropriate parties and make disbursements according to the closing statements executed by Seller and Purchaser.
Section 7.2    Conditions to Parties' Obligation to Close.  In addition to all other conditions set forth herein, the obligation of Seller, on the one hand, and Purchaser, on the other hand, to consummate the transactions contemplated hereunder are conditioned upon the following:
7.2.1    Representations and Warranties.  The other party's representations and warranties contained herein shall be true and correct in all material respects as of the Effective Date and the Closing Date, except for (a) representations and warranties made as of, or limited by, a specific date, which will be true and correct in all material respects as of the specified date or as limited by the specified date, and (b) Seller's representations and warranties under Section 9.1.2, which will be true and correct in all material respects as of the Effective Date.
7.2.2    Deliveries.  As of the Closing Date, the other party shall have tendered all deliveries to be made at Closing.
7.2.3    Actions, Suits, etc.  There shall exist no pending actions, suits, arbitrations, claims, attachments, proceedings, assignments for the benefit of creditors, insolvency, bankruptcy, reorganization or other proceedings, against the other party that would prevent the other party from performing its obligations under this Agreement.
7.2.4    Tenant Estoppel Certificates.  Purchaser shall have received tenant estoppel certificates from the tenants of the Property meeting the requirements of Section 7.3.7 below.
7.2.5    Parking Spaces.  Purchaser acknowledges that Seller has, at Purchaser's request, added fifteen (15) additional parking spaces at the Property as more particularly depicted on Exhibit J attached hereto (the “Parking Addition”).  Seller performed (or caused to be performed) the Parking Addition work in accordance with all applicable laws, rules, and regulations.  Purchaser has approved the Parking Addition work.  At or prior to Closing, Seller shall deliver to the Title Company and Purchaser copies of original final lien waivers from each contractor or subcontractor performing the Parking Addition work and other reasonable evidence of payment of the Parking Addition work requested by the Title Company or Purchaser (or, alternatively, the cost of the Parking Addition work may be included on the settlement statement for payment directly to the contractor and/or subcontractor at Closing).
7.2.6    Verizon Water Leak.  Seller has repaired the water leak described in Verizon’s tenant estoppel certificate dated August 15, 2014, pursuant to the scope of work attached hereto as Exhibit K.   At or prior to Closing, Seller shall deliver to the Title Company and Purchaser copies of original final lien waivers from each contractor or subcontractor performing such work and other reasonable evidence of payment of the work requested by the Title Company or Purchaser (or, alternatively, the cost of the work may be included on the settlement statement for payment directly to the contractor and/or subcontractor at Closing), together with evidence reasonably acceptable to Purchaser that Verizon has accepted such work in satisfaction of the objection made in its estoppel certificate (with Purchaser agreeing to accept email verification from Verizon).
So long as a party is not in default hereunder, if any condition to such party's obligation to proceed with the Closing hereunder has not been satisfied as of the Closing Date (or such earlier date as is provided herein), subject to any applicable notice and cure periods provided in Section 10.1 and Section 10.2, such party may, in its sole discretion, (i) terminate this Agreement by delivering written notice to the other party 

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on or before the Closing Date (or such earlier date as is provided herein), or (ii) elect to close (or to permit any such earlier termination deadline to pass) notwithstanding the non-satisfaction of such condition, in which event such party shall be deemed to have waived any such condition.  In the event such party elects to close (or to permit any such earlier termination deadline to pass), notwithstanding the non-satisfaction of such condition, said party shall be deemed to have waived said condition, and there shall be no liability on the part of any other party hereto for breaches of representations and warranties of which the party electing to close had knowledge at the Closing.
Section 7.3    Seller's Deliveries in Escrow.  As of or prior to the Closing Date, Seller shall deliver in escrow to Escrow Agent the following:
7.3.1    Deed.  A cash sale deed in the form of Exhibit B hereto and including a list of Permitted Exceptions to which the conveyance shall be subject, executed and acknowledged by Seller, conveying to Purchaser Seller's interest in the Real Property (the "Deed");
7.3.2    Bill of Sale, Assignment and Assumption.  A Bill of Sale, Assignment and Assumption of Leases and Contracts in the form of Exhibit C attached hereto (the "Assignment"), executed and acknowledged by Seller;
7.3.3    Conveyancing or Transfer Tax Forms or Returns.  Such conveyancing or transfer tax forms or returns, if any, as are required to be delivered or signed by Seller by applicable state and local law in connection with the conveyance of the Real Property;
7.3.4    FIRPTA.  A Foreign Investment in Real Property Tax Act affidavit in the form of Exhibit D attached hereto executed by Seller;
7.3.5    Authority.  Evidence of the existence, organization and authority of Seller and of the authority of the persons executing documents on behalf of Seller reasonably satisfactory to the underwriter for the Title Policy;
7.3.6    Additional Documents.  Any additional documents that Escrow Agent or the Title Company may reasonably require for the proper consummation of the transaction contemplated by this Agreement (provided, however, no such additional document shall expand any obligation, covenant, representation or warranty of Seller or result in any new or additional obligation, covenant, representation or warranty of Seller under this Agreement beyond those expressly set forth in this Agreement); and
7.3.7    Tenant Estoppel Certificates.  One (1) original counterpart of a Tenant Estoppel Certificate executed by (i) all tenants listed on Schedule 7.3.7 hereto (the "Key Tenants"), and (ii) tenants whose leases generate not less than sixty (60%) of the rental income of the Property derived from tenants other than the Key Tenants.  Seller will request that each tenant execute a Tenant Estoppel Certificate in substantially the form of Exhibit F (or, with respect to Kohl's and Hobby Lobby, on such tenant's form, and if a tenant's Lease specifies or contemplates another form of tenant estoppel certificate, then on substantially such other specified or contemplated form).  Seller shall make a reasonable effort to obtain and deliver copies of such tenant estoppel certificates to Purchaser no later than five (5) business days prior to the Closing.  In order to be acceptable for purposes of satisfying the terms of this Section 7.3.7, the tenant estoppel certificates delivered to Purchaser (1) shall not be dated earlier than July 25, 2014, (2) shall have all blanks completed or marked not applicable, as appropriate, (3) shall have all exhibits completed and attached, as applicable, and (4) shall not (x) contain any assertions adverse or contrary to the provisions of the Lease, or (y) indicate any material landlord default that has not been cured.  Notwithstanding anything to the contrary set forth herein, Purchaser acknowledges that the executed estoppel certificates listed on Exhibit L attached hereto 

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that have been delivered by Seller to Purchaser prior to the Effective Date are acceptable to Purchaser for purposes of this Section 7.3.7.  Purchaser acknowledges that the form of estoppel certificate attached hereto as Exhibit F includes information and statements in excess of what is required in the standard estoppel provision in Seller's form lease and Purchaser agrees that an executed estoppel shall be deemed acceptable for purposes of this Section 7.3.7 even if such additional statements are deleted or modified, so long as the items in clause (1) through (4) of the immediately preceding sentence are satisfied.  Seller agrees to forward a copy of any executed estoppel received by Seller from a tenant to Purchaser within three (3) business days after Seller's receipt of same.  If Purchaser does not object in writing (which may be via email) to an executed estoppel within three (3) business days after receiving same, the executed estoppel will be deemed acceptable for purposes of satisfying the condition in this Section 7.3.7.  Seller shall not be obligated to expend any funds in connection with obtaining any such tenant estoppel certificates, and the failure of Seller to obtain any such tenant estoppel certificates shall not be a breach or default hereunder.  If Seller is not able to obtain a sufficient number of acceptable tenant estoppel certificates to satisfy the threshold in clause (ii) above, such requirement may be satisfied by Seller providing a certificate executed by Seller for up to two (2) leases (other than the leases of Key Tenants) in the form of Exhibit I attached hereto (a "Seller Certificate").  If Seller is unable to deliver the tenant estoppel certificates or Seller Certificates referred to in this Section 7.3.7, then Purchaser's sole remedies and recourse shall be limited to either (a) waiving the requirement for the tenant estoppel certificates in question and proceeding to Closing without reduction of the Purchase Price, (b) adjourning the Closing Date for a period of up to twenty (20) days by giving written notice to Seller in order to allow Seller additional time to obtain such tenant estoppel certificates, or (c) terminating this Agreement by delivering written notification to Seller prior to the Closing Date, in which event this Agreement shall be terminated as provided for in Section 7.2.  Notwithstanding anything to the contrary set forth herein, if the Closing is extended for any reason, Seller shall not be required to obtain (and it shall not be a condition precedent to Purchaser's obligation to close that Seller obtain) updated estoppel certificates.  Notwithstanding anything to the contrary set forth herein, Seller shall not be required to obtain an estoppel certificate for the Men's Wearhouse Lease or any new Lease entered into after the Effective Date, and any such Leases shall be excluded from the calculation of the estoppel threshold in clause (ii) above.
7.3.8    Intentionally Deleted. 
7.3.9    Lease Escrow Agreement.  The Lease Escrow Agreement (as described in Section 8.2 and Section 12.24 below), executed by Seller.
Section 7.4    Purchaser's Deliveries in Escrow.  As of or prior to the Closing Date, Purchaser shall deliver in escrow to Escrow Agent the following:
7.4.1    Cash Sale.  The Deed, executed and acknowledged by Purchaser;
7.4.2    Bill of Sale, Assignment and Assumption.  The Assignment, executed and acknowledged by Purchaser;
7.4.3    Conveyancing or Transfer Tax Forms or Returns.  Such conveyancing or transfer tax forms or returns, if any, as are required to be delivered or signed by Purchaser by applicable state and local law in connection with the conveyance of Real Property;
7.4.4    Authority.  Evidence of the existence, organization and authority of Purchaser and of the authority of the persons executing documents on behalf of Purchaser reasonably satisfactory to the underwriter for the Title Policy; and
7.4.5    Additional Documents.  Any additional documents that Seller, Escrow Agent or the Title Company may reasonably require for the proper consummation of the transaction contemplated by 

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this Agreement (provided, however, no such additional document shall expand any obligation, covenant, representation or warranty of Purchaser or result in any new or additional obligation, covenant, representation or warranty of Purchaser under this Agreement beyond those expressly set forth in this Agreement).
7.4.6    Intentionally Deleted.  
7.4.7    Lease Escrow Agreement.  The Lease Escrow Agreement (as described in Section 8.2 and Section 12.24 below), executed by Purchaser.
Section 7.5    Closing Statements.  As of or prior to the Closing Date, Seller and Purchaser shall deposit with Escrow Agent executed closing statements consistent with this Agreement in the form required by Escrow Agent.
Section 7.6    Purchase Price.  At or before 2:00 p.m. local time on the Closing Date, Purchaser shall deliver to Escrow Agent the Purchase Price, less the Earnest Money that is applied to the Purchase Price, plus or minus applicable prorations, in immediate, same-day U.S. federal funds wired for credit into Escrow Agent's escrow account, which funds must be delivered in a manner to permit Escrow Agent to deliver good funds to Seller or its designee on the Closing Date by wire transfer (or by such other reasonable method as requested by Seller); in the event that Escrow Agent is unable to deliver good funds to Seller or its designee on the Closing Date, then the closing statements and related prorations will be revised as necessary.
Section 7.7    Possession.  Seller shall deliver possession of the Property to Purchaser at the Closing subject only to the Permitted Exceptions.
Section 7.8    Delivery of Books and Records.  After the Closing, Seller shall deliver to the offices of Purchaser's property manager or to the Real Property to the extent in Seller's or its property manager's possession or control: All original Leases, Lease guaranties, and License Agreements; Lease Files; maintenance records and warranties; plans and specifications; licenses, permits and certificates of occupancy; copies or originals of all books and records of account, contracts, and copies of correspondence with tenants and suppliers; all advertising materials; booklets; and keys.
Section 7.9    Notice to Tenants.  Seller and Purchaser shall each execute, and Purchaser shall deliver to each tenant immediately after the Closing, a notice regarding the sale in substantially the form of Exhibit E attached hereto, or such other form as may be required by applicable state law.  This obligation on the part of Purchaser shall survive the Closing.
ARTICLE 8 
PRORATIONS, DEPOSITS, COMMISSIONS
Section 8.1    Prorations.  At Closing, the following items shall be prorated as of the date of Closing with all items of income and expense for the Property being borne by Purchaser from and after (and including) the date of Closing:  (i) Tenant Receivables (defined below) and other income and rents that have been collected by Seller as of Closing; fees and assessments; (ii) prepaid expenses and obligations under Service Contracts; (ii) accrued operating expenses; real and personal ad valorem taxes ("Taxes"); and (iv) any assessments by private covenant for the then-current calendar year of Closing.  Specifically, the following shall apply to such prorations and to post-Closing collections of Tenant Receivables:
8.1.7    Taxes.  If Taxes for the year of Closing are not known or cannot be reasonably estimated, Taxes shall be prorated based on Taxes for the year prior to Closing.  Any additional Taxes relating 

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to the year of Closing or prior years arising out of a change in the use of the Real Property after the Closing or a change in ownership shall be assumed by Purchaser effective as of Closing and paid by Purchaser when due and payable, and Purchaser shall indemnify Seller from and against any and all such Taxes, which indemnification obligation shall survive the Closing.  Notwithstanding anything to the contrary set forth herein, when preparing the proration of Taxes pursuant to this Section 8.1, Purchaser and Seller will take into account that Kohl's is currently responsible for its allocable share of Taxes applicable to the entire Real Property, but that if, after Closing, the Kohl’s premises is separately assessed for real estate tax purposes, then Kohl’s shall pay directly to the applicable taxing authority 100% of any real estate taxes levied against the Kohl’s premises only, all as more particularly provided in the Kohl’s lease.
8.1.8    Utilities.  Purchaser shall take all steps necessary to effectuate the transfer of all utilities to its name as of the Closing Date, and where necessary, post deposits or escrows with the utility companies.  Seller shall use reasonable efforts to have utility meters read as of the Closing Date.  Seller shall be entitled to recover any and all deposits, escrows, bonds or letters of credit held by any utility company, owner's association or any quasi-governmental authority as of the Closing Date.
8.1.9    Tenant Receivables.  Rents due from tenants under Leases and from tenants or licensees under License Agreements and operating expenses and/or taxes payable by tenants under Leases (collectively, "Tenant Receivables") and not collected by Seller as of Closing shall not be prorated between Seller and Purchaser at Closing but shall be apportioned on the basis of the period for which the same is payable and if, as and when collected, as follows:  Except to the extent  otherwise provided in Sections 8.1.4 and 8.1.6 below, Tenant Receivables and other income received from tenants under Leases and/or tenants or licensees under License Agreements after Closing shall be applied in the following order of priority (unless such amount is designated by such tenant or licensee for a specific period, in which case such amount shall be applied to the period specified):  (A) first, to payment of the current Tenant Receivables then due for the month in which the Closing Date occurs, which amount shall be apportioned between Purchaser and Seller as of the Closing Date as set forth in Section 8.1 hereof (with Seller's portion thereof to be delivered to Seller); (B) second, to Tenant Receivables first coming due after Closing and applicable to the period of time after Closing, which amount shall be retained by Purchaser; (C) third, to payment of Tenant Receivables first coming due after Closing but applicable to the period of time before Closing, including, without limitation, the Tenant Receivables described in Section 8.1.4 below (collectively, "Unbilled Tenant Receivables"), which amount shall be delivered to Seller; and (D) thereafter, to delinquent Tenant Receivables which were due and payable as of Closing but not collected by Seller as of Closing (collectively, "Uncollected Delinquent Tenant Receivables"), which amount shall be delivered to Seller.  Notwithstanding the foregoing, Seller shall have the right to pursue the collection of Uncollected Delinquent Tenant Receivables for a period of one year after Closing without prejudice to Seller's rights or Purchaser's obligations hereunder, provided, however, Seller shall have no right to cause any such tenant or licensee to be evicted or to exercise any other "landlord" remedy (as set forth in such tenant's Lease or licensee's License Agreement) against such tenant other than to sue for collection; and provided further that Seller shall not commence any legal proceedings against any tenant which is not a Key Tenant after Closing with respect to Uncollected Delinquent Tenant receivables.  For a period of 180 days after the Closing, Purchaser shall bill tenants for Uncollected Delinquent Tenant Receivables and shall use reasonable efforts to collect such amounts, provided that Purchaser shall not be obligated to expend any funds or commence legal proceedings to collect any such amounts.  Any sums received by Purchaser to which Seller is entitled shall be held in trust for Seller on account of such past due rents payable to Seller, and Purchaser shall remit to Seller any such sums received by Purchaser to which Seller is entitled within ten business days after receipt thereof less reasonable, actual costs and expenses of collection, including reasonable attorneys' fees, court costs and disbursements, if any.  Seller expressly agrees that if Seller receives any amounts after the Closing Date attributable, in whole or 

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in part, to any period after the Closing Date, Seller shall remit to Purchaser that portion of the monies so received by Seller to which Purchaser is entitled within ten business days after receipt thereof.  
8.1.10    Percentage Rent.  At Closing, percentage rents shall be separately apportioned based on the percentage rents actually collected by Seller.  Such apportionment shall be made separately for each tenant which is obligated to pay percentage rent on the basis of the fiscal year set forth in the tenant's Lease for the determination and payment of percentage rent.  Any percentage rent received from a tenant after the Closing shall be applied as follows:  (a) Purchaser shall be entitled to a prorata portion of such percentage rent payment based on the number of days within the applicable percentage rent fiscal year period that Purchaser owned the Property and (b) Seller shall be entitled to a prorata portion of such percentage rent payment based on the number of days within the applicable percentage rent period that Seller owned the Property.
8.1.11    Final Adjustments After Closing.  No later than March 31, 2015 (the "Final Adjustment Date"), Seller and Purchaser shall make a final adjustment in accordance with the provisions of this Section 8.1 of percentage rent and other items of additional rents for which final adjustments or prorations could not be determined at the Closing, if any, because of the lack of actual statements, bills or invoices for the current period, the year end adjustment of common area maintenance, taxes and like items, the unavailability of final sales figures or amounts for percentage rent or any other reason.  Except to the extent otherwise provided in Section 8.1.6, any net adjustment in favor of Purchaser or Seller is to be paid in cash by the other no later than thirty (30) days after such final adjustment has been made.
8.1.12    Reimbursable Expenses.  To the extent tenants pay monthly estimates of common area maintenance charges, central plant charges, taxes and similar expenses (collectively, "Charges") with an adjustment at the end of each fiscal year applicable to such Charges, they shall be prorated in accordance with this Section.  Until the adjustment described in this Section is made, all amounts received by Seller as interim payments of Charges before the Closing Date shall be retained by Seller, except that all interim payments received by either party for the month in which the Closing Date occurs shall be prorated as between Seller and Purchaser based upon the number of days in that month and the party receiving the interim payment shall remit to (if received on or after the Closing Date) or credit (if received before the Closing Date) the other party its proportionate share.  All amounts received by Purchaser as interim payments of Charges on or after the Closing Date shall be retained by Purchaser until year end adjustment and determination of Seller's allocable share thereof.  No later than the Final Adjustment Date, Seller's allocable share of actual Charges for Leases in effect as of the Closing Date shall be determined by multiplying the total payments due from each tenant for such fiscal year (the sum of estimated payments plus or minus year end adjustments) by a fraction, the numerator of which is Seller's actual cost of providing common area maintenance services and taxes (as the case may be) prior to the Closing Date (within that portion of the fiscal year prior to the Closing Date in which the applicable Lease is in effect), and the denominator of which is the cost of providing such services and paying such taxes for the entire fiscal year (or that portion of the fiscal year in which the applicable Lease is in effect).  If, on the basis of amounts actually incurred and the estimated payments received by Seller, Seller has retained amounts in excess of its allocable share, it shall remit, within thirty (30) days after notice from Purchaser of the excess owed Purchaser, such excess to Purchaser.  If, on the basis of the foregoing amounts, Seller has retained less than its allocable share (the "Seller Shortfall"), Purchaser shall use reasonable efforts for a period of 180 days after the Final Adjustment Date to collect the Seller Shortfall from the tenants of the Property and, to the extent collected by Purchaser, Purchaser shall promptly remit the Seller Shortfall, net of reasonable costs of collection, including without limitation, reasonable attorney's fees, to Seller.  Purchaser shall not be obligated to expend any funds or commence legal proceedings to collect any Seller Shortfall.  In no event shall Seller commence any legal proceedings against any tenant after the Closing with respect to any Seller Shortfall.  

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In the event there is a dispute with any tenant relating to Charges billed by Seller relating to the period prior to the Closing Date, Seller shall be responsible for resolving such dispute with such tenant and, if it is determined that credits are due to such tenant with respect to such charges, Seller shall remit such amount either to the Purchaser or directly to the tenant within ten (10) days after determination thereof.  In the event there is a dispute with any tenant relating to Charges billed by Purchaser relating to the period after the Closing Date, Purchaser shall be responsible for resolving such dispute with such tenant and, if it is determined that credits are due to such tenant with respect to such charges, Purchaser shall remit such amount to the tenant within ten (10) days after determination thereof.  
Notwithstanding anything to the contrary provided in the preceding Paragraph or Section 8.1.3 above, Seller shall be entitled to receive and retain all reconciliation payments made by tenants with respect to Charges for the calendar years preceding the calendar year of Closing, and shall be responsible for any amounts owed to tenants in connection with the final reconciliation of Charges for such prior calendar years.  If any such reconciliation payment with respect to Charges for a calendar year preceding the year in which the Closing occurs is received by Purchaser after the Closing, Purchaser shall remit such payment to Seller promptly upon receipt.  If any tenant which is owed a refund with respect to Charges for a calendar year preceding the calendar year of Closing deducts or sets off such amount against rents or other charges owed by such  tenant after the Closing, Seller shall remit such amount to Purchaser promptly following the occurrence of such set off or deduction.
In the event that any tenant has the right to inspect and audit the books, records and other documents of the landlord under its Lease which evidence common area maintenance costs and expenses or other charges, Seller hereby covenants and agrees that it shall retain such books, records and other documents which will enable such tenant to conduct a full and complete audit thereof until the date that is six (6) months after the latest date that such tenant could demand an inspection and/or audit thereof pursuant to its Lease and, upon written request therefor from Purchaser, or any successor or assign, thereof, shall provide both Purchaser and such tenant with reasonable access thereto and otherwise reasonably cooperate with both Purchaser and such tenant with respect to such inspection and/or audit by such tenant.  In the event such tenant claims any right to a credit, refund or other reimbursement as a result of such audit, Seller shall indemnify, hold harmless and defend the Purchaser from any and all claims relating thereto or arising therefrom.
Section 8.2    Leasing Costs.  Seller agrees either to (i) pay or discharge at or prior to Closing or (ii) provide Purchaser with a credit against the Purchase Price for all leasing commissions, costs for tenant improvements, lease buyout costs, moving allowances, design allowances, and other costs, expenses and allowances incurred in order to induce a tenant to enter into a Lease or Lease renewal or extension or to induce a licensee to enter into a License Agreement (collectively, "Leasing Costs") that are payable with respect to Leases and License Agreements in force as of or prior to the Effective Date; provided, however, that Seller shall have no obligation to pay, and as of Closing Purchaser shall assume the obligation to pay, all Leasing Costs payable with respect to any option to renew or option to expand that has not been exercised prior to the Effective Date, which obligation shall survive the Closing.  Notwithstanding anything to the contrary set forth herein, Seller agrees to provide Purchaser with a credit against the Purchase Price for any Leasing Costs that have not been paid at or prior to Closing with respect to the Men's Wearhouse Lease, and Purchaser shall assume responsibility for the payment of such Leasing Costs after Closing.  Additionally, as of Closing, Purchaser shall assume Seller's obligations for (a) Leasing Costs that are due and payable with respect to Leases and License Agreements entered into by Seller with Purchaser's approval after the Effective Date, and (b) Leasing Costs incurred with respect to Leases and Lease renewals and extensions and License Agreements and License Agreement renewals and extensions executed subsequent to the Effective Date.  Notwithstanding anything to the contrary set forth herein, with respect to the Men's Wearhouse Lease, Seller 

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agrees that a portion of the sales proceeds will be withheld in escrow with Escrow Agent in an amount equal to the pro forma rent (including base rent and triple net charges), at the monthly rate provided for in the Men’s Wearhouse Lease (subject to adjustment post-Closing in connection with any re-measurement of the Men's Wearhouse premises, as more particularly provided in the Men's Wearhouse Lease), for the first full lease year commencing on the later of (i) the rental commencement date thereunder, or (ii) the expiration of any applicable rent abatement period, to be held in escrow for the period commencing on the date of Closing and continuing until the date on which payment of full base rent and triple net charges are projected to commence under such Lease.  Such escrowed amounts will be held and disbursed by Escrow Agent in accordance with the terms and conditions of an escrow holdback agreement to be agreed upon by Seller and Purchaser prior to Closing (the "Lease Escrow Agreement"), which will provide for the following disbursement:  (1) Purchaser will receive an amount equal to the monthly rent that would have been payable to landlord if rent had actually commenced under the Men's Wearhouse Lease as of the Closing Date (the "Lost Rent"), and (2) Seller will receive the balance of the escrowed funds after disbursement of the Lost Rent to Purchaser.  For example, if (A) the monthly amount of rent under the Men's Wearhouse Lease was $10,000, (B) the actual rent commencement date (after the expiration of any applicable rent abatement period) was February 1, 2015, and (C) the Closing Date occurred on October 1, 2014, the following would apply:  (1) the escrowed amount would be $120,000, (2) the Lost Rent would be $40,000 ($10,000 x 4 months), and (3) Seller would receive the balance of $80,000.
Section 8.3    Closing Costs.  Closing costs shall be allocated between Seller and Purchaser in accordance with Section 1.2.
Section 8.4    Tenant Deposits and Prepaid Rents.  All tenant and licensee security deposits and prepaid rents collected and not applied by Seller prior to the Closing Date (and interest thereon if required by law or contract) shall be transferred or credited to Purchaser at Closing.  As of the Closing, Purchaser shall assume Seller's obligations related to tenant and licensee security deposits and prepaid rents, but only to the extent they are credited or transferred to Purchaser.
Section 8.5    Commissions.  Seller shall be responsible to Broker for a real estate sales commission at Closing (but only in the event of a Closing in strict accordance with this Agreement) in accordance with a separate agreement between Seller and Broker.  Broker may share its commission with any other licensed broker involved in this transaction, but the payment of the commission by Seller to Broker shall fully satisfy any obligations of Seller to pay a commission hereunder.  Under no circumstances shall Seller owe a commission or other compensation directly to any other broker, agent or person.  Any cooperating broker shall not be an affiliate, subsidiary or related in any way to Purchaser.  Other than as stated above in this Section 8.5, Seller and Purchaser each represent and warrant to the other that no real estate brokerage commission is payable to any person or entity in connection with the transaction contemplated hereby, and each agrees to and does hereby indemnify and hold the other harmless against the payment of any commission to any other person or entity claiming by, through or under Seller or Purchaser, as applicable.  This indemnification shall extend to any and all claims, liabilities, costs and expenses (including reasonable attorneys' fees and litigation costs) arising as a result of such claims and shall survive the Closing.
Section 8.6    Survival.  The agreements set forth in this Article 8 shall survive the Closing.

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ARTICLE 9 
REPRESENTATIONS AND WARRANTIES
Section 9.1    Seller's Representations and Warranties.  Seller represents and warrants to Purchaser that:
9.1.1    Organization and Authority; Conflicts and Pending Actions.  Seller has been duly organized, is validly existing, and is in good standing in the state in which it was formed.  Seller has the full right and authority and has obtained any and all consents required to enter into this Agreement and to consummate or cause to be consummated the transactions contemplated hereby.  This Agreement has been, and all of the documents to be delivered by Seller at the Closing will be, authorized and executed and constitute, or will constitute, as appropriate, the valid and binding obligation of Seller, enforceable in accordance with their terms.  There is no agreement to which Seller is a party or, to Seller's knowledge, that is binding on Seller which is in conflict with this Agreement.  To Seller's knowledge, there is no action or proceeding pending or threatened against Seller or relating to the Property, which challenges or impairs Seller's ability to execute or perform its obligations under this Agreement.
9.1.2    Tenant Leases, Service Contracts and License Agreements.  As of the Effective Date, (i) Exhibit G lists all Leases of the Property and (ii) the Lease Files include all of the Leases and amendments in Seller's possession.  To Seller's knowledge, the lists of Service Contracts and License Agreements to be delivered to Purchaser pursuant to this Agreement will be correct and complete as of the date of their delivery.  Except as may be reflected in the Property Documents, to Seller's knowledge, Seller has not received from any counterparty to a Lease, Service Contract or License Agreement a written notice of default that has not been cured.  Except as may be reflected in the Property Documents, as of the Effective Date, Seller has sent no written notice of default to any counterparty to a Lease, Service Contract or License Agreement that has not been cured.  The copies of the Leases, Service Contracts and Licenses Agreements delivered to Purchaser pursuant to Article 4 are copies of the same documents used by Seller in the ordinary course of business and nothing has been intentionally omitted to make the information contained therein materially misleading.
9.1.3    Notices from Governmental Authorities.  Except as may be reflected in the Property Documents, to Seller's knowledge, Seller has not received from any governmental authority written notice of any violation of any laws applicable (or alleged to be applicable) to the Real Property, or any part thereof, that has not been corrected.
9.1.4    Leasing Commissions.  To Seller's knowledge, and except as may be reflected in the Property Documents, Seller has not entered into a written agreement with a tenant broker giving such broker an automatic right to receive a leasing commission for the future exercise of a renewal option, expansion option, right of first offer, right of first refusal or other similar right that is not conditioned on such broker being actively involved in the negotiation of a lease amendment at the time such right is exercised.
9.1.5    No Litigation.  To Seller's actual knowledge, there is no pending litigation or judicial proceeding against Seller or relating to the Property.
9.1.6    Operating Statements.  The operating statements delivered or to be delivered to Purchaser pursuant to Section 4.1 have been prepared in accordance with Seller's past business practices by Seller or its agents in connection with Seller's operation of the Property.
9.1.7    No Condemnation; Zoning.  To Seller's knowledge, there is no pending or threatened eminent domain proceedings affecting the Property, in whole or in part.  Seller has not and will 

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not, without the prior written consent of Purchaser, take any action before any Governmental Authority, the object of which would be to change the present zoning of or other land use limitations, upon the Property, or any portion thereof, or its potential use, and, to Seller's knowledge, there are no pending proceedings, the object of which would be to change the present zoning or other land use limitations.
9.1.8    No Bankruptcy Proceedings.  Seller has not commenced (within the meaning of any federal or state bankruptcy law) a voluntary case, consented to the entry of an order for relief against it in an involuntary case, or consented to the appointment of a custodian of it or for all or any substantial part of its property, nor has a court of competent jurisdiction entered an order or decree under any federal or state bankruptcy law that is for relief against Seller in an involuntary case or appointed a custodian of Seller for all or any substantial part of its property.
9.1.9    REAs.  Except as may be reflected in the Property Documents and in the documents referenced in the Title Commitment, to Seller's knowledge, any and all amounts due and payable by Seller under the Kohl's REA and the Academy Declaration have been paid and Seller has not received written notice of default under the Kohl's REA or the Academy Declaration that has not been cured, nor has Seller delivered written notice of default to any other parties under the Kohl's REA and the Academy Declaration that has not been cured.
Section 9.2    Purchaser's Representations and Warranties.  Purchaser represents and warrants to Seller that:
9.2.1    Organization and Authority.  Purchaser has been duly organized and is validly existing and in good standing in the State of Delaware.  At or prior to Closing, Purchaser will be qualified to do business in the state in which the Real Property is located.  Purchaser has the full right and authority and has obtained any and all consents required to enter into this Agreement and to consummate or cause to be consummated the transactions contemplated hereby.  This Agreement has been, and all of the documents to be delivered by Purchaser at the Closing will be, authorized and properly executed and constitute, or will constitute, as appropriate, the valid and binding obligation of Purchaser, enforceable in accordance with their terms.
9.2.2    Conflicts and Pending Action.  There is no agreement to which Purchaser is a party or to Purchaser's knowledge binding on Purchaser which is in conflict with this Agreement.  There is no action or proceeding pending or, to Purchaser's knowledge, threatened against Purchaser which challenges or impairs Purchaser's ability to execute or perform its obligations under this Agreement.
9.2.3    ERISA.  Purchaser is not an employee benefit plan (a "Plan") subject to the Employee Retirement Income Security Act of 1974, as amended ("ERISA"), or Section 4975 of the Internal Revenue Code of 1986, as amended (the "Code"), Purchaser's assets do not constitute "plan assets" within the meaning of the "plan asset regulations" (29.C.F.R. Section 2510.3-101), and Purchaser's acquisition of the Property will not constitute or result in a non-exempt prohibited transaction under Section 406 of ERISA or Section 4975 of the Code.
9.2.4    Prohibited Persons and Transactions.  Neither Purchaser nor any of its affiliates, nor any of their respective partners, members, shareholders or other equity owners, and none of their respective employees, officers, directors, representatives or agents is, nor will they become, a person or entity with whom U.S. persons or entities are restricted from doing business under regulations of the Office of Foreign Asset Control ("OFAC") of the Department of the Treasury (including those named on OFAC's Specially Designated Nationals and Blocked Persons List) or under any statute, executive order (including the September 24, 2001, Executive Order Blocking Property and Prohibiting Transactions with Persons Who 

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Commit, Threaten to Commit, or Support Terrorism), or other governmental action and is not and will not engage in any dealings or transactions or be otherwise associated with such persons or entities.
Section 9.3    Survival of Representations and Warranties.  The representations and warranties set forth in this Article 9 are made as of the Effective Date and, except as provided in clause (b) of Section 7.2.1, shall be deemed remade as of the Closing Date and shall not be deemed to be merged into or waived by the instruments of Closing, but shall survive the Closing for a period of six (6) months (the "Survival Period").  Terms such as "to Seller's knowledge," "to the best of Seller's knowledge" or like phrases mean the actual present and conscious awareness or knowledge of Stephen Coslik, whom Seller represents is affiliated with and/or employed by affiliates or constituents owners of Seller with sufficient knowledge of the Property to enable Seller to make the Seller's representations and warranties set forth in this Article 9 ("Seller's Representative"), without any duty of inquiry or investigation; provided that so qualifying Seller's knowledge shall in no event give rise to any personal liability on the part of Seller's Representative or any other officer or employee of Seller, on account of any breach of any representation or warranty made by Seller herein.  Said terms do not include constructive knowledge, imputed knowledge, or knowledge Seller or such persons do not have but could have obtained through further investigation or inquiry.  No broker, agent, or party other than Seller is authorized to make any representation or warranty for or on behalf of Seller.  Each party shall have the right to bring an action against the other on the breach of a representation or warranty hereunder, but only on the following conditions:  (a) the party bringing the action for breach first learns of the breach after Closing and files such action within the Survival Period, and (b) neither party shall have the right to bring a cause of action for a breach of a representation or warranty unless the damage to such party on account of such breach (individually or when combined with damages from other breaches) equals or exceeds $25,000.00.  Neither party shall have any liability after the Closing for the breach of a representation or warranty hereunder of which the other party hereto had knowledge as of Closing.  Notwithstanding any other provision of this Agreement, any agreement contemplated by this Agreement, or any rights which Purchaser might otherwise have at law, equity, or by statute, whether based on contract or some other claim, Purchaser agrees that any liability of Seller to Purchaser will be limited to the aggregate amount of $750,000; provided, however, that such limitation shall not be applicable to the representation and indemnity of Seller pursuant to Section 8.5 hereof.  The provisions of this Section 9.3 shall survive the Closing.  Any breach of a representation or warranty that occurs prior to Closing shall be governed by Article 10.
ARTICLE 10DEFAULT AND REMEDIES
Section 10.1    Seller's Remedies.  If the sale of the Property is not consummated due to any default by Purchaser on its obligations hereunder, or if prior to Closing any one or more of Purchaser's representations or warranties are breached in any material respect, and such default or breach is not cured by the Closing Date, Seller shall be entitled, as its sole remedy (except as provided in Section 4.7, Section 4.9, Section 4.10, Section 8.5, Section 10.3 and Section 10.4 hereof), to terminate this Agreement and recover the Earnest Money as liquidated damages and not as penalty, in full satisfaction of Seller's claims against Purchaser hereunder.  Seller and Purchaser agree that Seller's damages resulting from Purchaser's default are difficult, if not impossible, to determine and the Earnest Money is a fair estimate of those damages which has been agreed to in an effort to cause the amount of such damages to be certain.  If Closing is consummated, Seller shall have all remedies available at law or in equity in the event Purchaser fails to perform any obligation of Purchaser under this Agreement which survives the Closing.
Section 10.2    Purchaser's Remedies.  If Seller fails to consummate the sale of the Property pursuant to this Agreement or otherwise defaults on its obligations hereunder at or prior to Closing for any reason except failure by Purchaser to perform hereunder, or if prior to Closing any one or more of Seller's 

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representations or warranties are breached in any material respect, and such default or breach is not cured by the earlier of the third (3rd) business day after written notice thereof from Purchaser or the Closing Date (Purchaser hereby agreeing to give such written notice to Seller within one business day after Purchaser first learns of any such default or breach by Seller, except no notice or cure period shall apply if Seller fails to consummate the sale of the Property hereunder), Purchaser shall elect, as its sole remedy (except as provided in Section 8.5, Section 10.3 and Section 10.4 hereof), either to (a) terminate this Agreement by giving Seller timely written notice of such election prior to or at Closing, in which event Purchaser shall be entitled to receive a full refund of the Earnest Money and, in addition, Seller shall reimburse Purchaser for its actual out‐of‐pocket costs and expenses in connection with its negotiation of this Agreement, its investigation of the Property, and the transactions contemplated by this Agreement, not to exceed an aggregate amount of $100,000, (b) enforce specific performance to consummate the sale of the Property hereunder, or (c) waive said failure or breach and proceed to Closing without any reduction in the Purchase Price.  Notwithstanding anything herein to the contrary, Purchaser shall be deemed to have elected to terminate this Agreement if Purchaser fails to deliver to Seller written notice of its intent to file a claim or assert a cause of action for specific performance against Seller on or before fifteen (15) business days following the scheduled Closing Date or, having given such notice, fails to file a lawsuit asserting such claim or cause of action in the county or parish in which the Property is located within two months following the scheduled Closing Date.  Purchaser's remedies for a default by Seller prior to Closing shall be limited to those described in this Section 10.2 and Section 10.3 and Section 10.4 hereof.  IN NO EVENT SHALL SELLER'S DIRECT OR INDIRECT PARTNERS, SHAREHOLDERS, OWNERS OR AFFILIATES, ANY OFFICER, DIRECTOR, EMPLOYEE OR AGENT OF THE FOREGOING, OR ANY AFFILIATE OR CONTROLLING PERSON THEREOF HAVE ANY LIABILITY FOR ANY CLAIM, CAUSE OF ACTION OR OTHER LIABILITY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE PROPERTY, WHETHER BASED ON CONTRACT, COMMON LAW, STATUTE, EQUITY OR OTHERWISE.
Section 10.3    Attorneys' Fees.  In the event either party hereto employs an attorney  in connection with claims by one party against the other arising from the operation of this Agreement, the non-prevailing party shall pay the prevailing party all reasonable fees and expenses, including attorneys' fees, incurred in connection with such claims.
Section 10.4    Other Expenses.  If this Agreement is terminated due to the default of a party, then the defaulting party shall pay any fees or charges due to Escrow Agent for holding the Earnest Money as well as any escrow cancellation fees or charges and any fees or charges due to the Title Company for preparation and/or cancellation of the Title Commitment.
Section 10.5    Other Remedies.  The provisions of Sections 10.1 and 10.2 hereof shall not limit any rights or remedies that either party may have against the other with respect to any provisions of this Agreement that survive the Closing.
Section 10.6    Survival.  The terms of this Article 10 shall survive the Closing or any termination of this Agreement.
ARTICLE 11 
DISCLAIMERS, RELEASE AND INDEMNITY
Section 11.1    Disclaimers By Seller.  Except as expressly set forth in this Agreement, it is understood and agreed that Seller and Seller's agents or employees have not at any time made and are not now making, and they specifically disclaim, any warranties, representations or guaranties of any kind or character, express or implied, with respect to the Property, including, but not limited to, warranties, 

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representations or guaranties as to (a) matters of title (other than Seller's special warranty of title to be contained in the Deed), (b) environmental matters relating to the Property or any portion thereof, including, without limitation, the presence of Hazardous Materials in, on, under or in the vicinity of the Property, (c) geological conditions, including, without limitation, subsidence, subsurface conditions, water table, underground water reservoirs, limitations regarding the withdrawal of water, and geologic faults and the resulting damage of past and/or future faulting, (d) whether, and to the extent to which the Property or any portion thereof is affected by any stream (surface or underground), body of water, wetlands, flood prone area, flood plain, floodway or special flood hazard, (e) drainage, (f) soil conditions, including the existence of instability, past soil repairs, soil additions or conditions of soil fill, or susceptibility to landslides, or the sufficiency of any undershoring, (g) the presence of endangered species or any environmentally sensitive or protected areas, (h) zoning or building entitlements to which the Property or any portion thereof may be subject, (i) the availability of any utilities to the Property or any portion thereof including, without limitation, water, sewage, gas and electric, (j) usages of adjoining property, (k) access to the Property or any portion thereof, (l) the value, compliance with the plans and specifications, size, location, age, use, design, quality, description, suitability, structural integrity, operation, title to, or physical or financial condition of the Property or any portion thereof, or any income, expenses, charges, liens, encumbrances, rights or claims on or affecting or pertaining to the Property or any part thereof, (m) the condition or use of the Property or compliance of the Property with any or all past, present or future federal, state or local ordinances, rules, regulations or laws, building, fire or zoning ordinances, codes or other similar laws, (n) the existence or non-existence of underground storage tanks, surface impoundments, or landfills, (o) any other matter affecting the stability and integrity of the Property, (p) the potential for further development of the Property, (q) the merchantability of the Property or fitness of the Property for any particular purpose, (r) the truth, accuracy or completeness of the Property Documents, (s) tax consequences, or (t) any other matter or thing with respect to the Property.
Section 11.2    Sale "As Is, Where Is".  Purchaser acknowledges and agrees that upon Closing, Seller shall sell and convey to Purchaser and Purchaser shall accept the Property "AS IS, WHERE IS, WITH ALL FAULTS," except to the extent expressly provided otherwise in this Agreement and any document executed by Seller and delivered to Purchaser at Closing (the "Closing Documents").  Except as expressly set forth in this Agreement and the Closing Documents, Purchaser has not relied and will not rely on, and Seller has not made and is not liable for or bound by, any express or implied warranties, guarantees, statements, representations or information pertaining to the Property or relating thereto (including specifically, without limitation, Property information packages distributed with respect to the Property) made or furnished by Seller, or any property manager, real estate broker, agent or third party representing or purporting to represent Seller, to whomever made or given, directly or indirectly, orally or in writing.  Purchaser represents that it is a knowledgeable, experienced and sophisticated purchaser of real estate and that, except as expressly set forth in this Agreement and the Closing Documents, it is relying solely on its own expertise and that of Purchaser's consultants in purchasing the Property and shall make an independent verification of the accuracy of any documents and information provided by Seller.  Purchaser will conduct such inspections and investigations of the Property as Purchaser deems necessary, including, but not limited to, the physical and environmental conditions thereof, and shall rely upon same.  By failing to terminate this Agreement prior to the expiration of the Inspection Period, Purchaser acknowledges that Seller has afforded Purchaser a full opportunity to conduct such investigations of the Property as Purchaser deemed necessary to satisfy itself as to the condition of the Property and the existence or non-existence or curative action to be taken with respect to any Hazardous Materials on or discharged from the Property, and will rely solely upon same and not upon any information provided by or on behalf of Seller or its agents or employees with respect thereto, other than such representations, warranties and covenants of Seller as are expressly set forth in this Agreement and the Closing Documents.  Upon Closing, subject to the representations, warranties, and covenants of Seller set forth in this Agreement and in the Closing Documents, Purchaser shall assume the risk that adverse matters, including, but not limited to, adverse physical or construction defects or adverse environmental, 

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health or safety conditions, may not have been revealed by Purchaser's inspections and investigations.  Purchaser hereby represents and warrants to Seller that:  (a) Purchaser is represented by legal counsel in connection with the transaction contemplated by this Agreement; and (b) Purchaser is purchasing the Property for business, commercial, investment or other similar purpose and not for use as Purchaser's residence.  Purchaser waives any and all rights or remedies it may have or be entitled to, deriving from disparity in size or from any significant disparate bargaining position in relation to Seller.
Purchaser acknowledges and agrees that the Deed shall contain the follow language:

"As a material and integral consideration for the execution of this act of sale by Seller, except to the extent expressly provided otherwise in that certain Purchase and Sale Agreement by and between Seller and Purchaser (the "Agreement") and any document executed by Seller and delivered to Purchaser at Closing (the "Closing Documents"), Purchaser waives and releases Seller from any and all claims and or causes of actions to which Purchaser may have or hereafter may be otherwise entitled, based on vices or defects in the Property herein sold, or any improvements or component parts thereof, whether in the nature of redhibition, reduction of the purchase price, concealment, or any other theory of law.  Subject to the representations, warranties and covenants of Seller set forth in the Agreement and the Closing Documents, Purchaser further assumes the risk of all vices and defects in the Property, and all improvements and component parts thereof, whether those vices or defects are latent or not discoverable upon simple inspection, and including those vices or defects, knowledge of which would deter Purchaser from making this purchase.

Subject to the representations, warranties and covenants of Seller set forth in the Agreement and in the Closing Documents, Purchaser further acknowledges that Purchaser (a) had ample opportunity to fully inspect the Property, (b) has inspected the Property to the extent Purchaser deemed necessary (c) does hereby purchase the Property in its present condition, (d) does hereby purchase the Property subject to any physical encroachments on the Property and any physical encroachments onto adjacent property by improvements located on the Property, and (e) to the fullest extent permitted by law waives and relinquishes any and all rights to void the sale or for a reduction of the purchase price on account of some latent or apparent vice or defect in the Property."

Section 11.3    Seller Released from Liability.  Purchaser acknowledges that it will have the opportunity to inspect the Property during the Inspection Period, and during such period, observe its physical characteristics and existing conditions and the opportunity to conduct such investigation and study on and of the Property and adjacent areas as Purchaser deems necessary, and Purchaser hereby FOREVER RELEASES AND DISCHARGES Seller from all responsibility and liability, including without limitation, liabilities under the Comprehensive Environmental Response, Compensation and Liability Act Of 1980 (42 U.S.C. Sections 9601 et seq.), as amended ("CERCLA"), the Resource Conservation and Recovery Act (42 U.S.C. Section 9601 et seq.), as amended, and the Oil Pollution Act (33 U.S.C. Section 2701 et seq.), Statewide Order No. 29-B of the Office of Conservation, State of Louisiana (La. Admin. Code 43:XIX.129.B), the Louisiana Abandoned Oilfield Waste Site Law (La. R.S. 30:71, et seq.), the Louisiana Solid Waste Management and Resource Recovery Law (La. R.S. 30:2151, et seq.), the Louisiana Hazardous Waste Control Law (La. R.S. 30:2171, et seq.), the Louisiana Inactive and Abandoned Hazardous Waste Site Law (La. R.S. 30:2221, et seq.), and the Louisiana Hazardous Substance Remedial Act (La. R.S. 30:2271, et seq.), regarding the condition, valuation, salability or utility of the Property, or its suitability for any purpose whatsoever (including, but not limited to, with respect to the presence in the soil, air, structures and surface and subsurface waters, of Hazardous Materials or other materials or substances that have been or may in the future be determined to be toxic, hazardous, undesirable or subject to regulation and that may need to be specially treated, handled and/or removed from the Property under current or future federal, state and local laws, 

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regulations or guidelines, and any structural and geologic conditions, subsurface soil and water conditions and solid and hazardous waste and Hazardous Materials on, under, adjacent to or otherwise affecting the Property).  Purchaser further hereby WAIVES (and by Closing this transaction will be deemed to have WAIVED) any and all objections and complaints (including, but not limited to, federal, state and local statutory and common law based actions, and any private right of action under any federal, state or local laws, regulations or guidelines to which the Property is or may be subject, including, but not limited to, CERCLA) concerning the physical characteristics and any existing conditions of the Property.  Purchaser further hereby assumes the risk of changes in applicable laws and regulations relating to past, present and future environmental conditions on the Property and the risk that adverse physical characteristics and conditions, including, without limitation, the presence of Hazardous Materials or other contaminants, may not have been revealed by its investigation.
Section 11.4    "Hazardous Materials" Defined.  For purposes hereof, "Hazardous Materials" means "Hazardous Material," "Hazardous Substance," "Pollutant or Contaminant," and "Petroleum" and "Natural Gas Liquids," as those terms are defined or used in Section 101 of CERCLA, and any other substances regulated because of their effect or potential effect on public health and the environment, including, without limitation, PCBs, lead paint, asbestos, urea formaldehyde, radioactive materials, putrescible materials, and infectious materials.
Section 11.5    Survival.  The terms and conditions of this Article 11 shall expressly survive the Closing and shall not merge with the provisions of any closing documents.
Purchaser acknowledges and agrees that the disclaimers and other agreements set forth herein are an integral part of this Agreement and that Seller would not have agreed to sell the Property to Purchaser for the Purchase Price without the disclaimers and other agreements set forth above.
Purchaser's Initials: /s/ TW    
ARTICLE 12     
MISCELLANEOUS
Section 12.1    Parties Bound; Assignment.  This Agreement, and the terms, covenants, and conditions herein contained, shall inure to the benefit of and be binding upon the heirs, personal representatives, successors, and assigns of each of the parties hereto.  Purchaser may assign its rights under this Agreement upon the following conditions:  (a) the assignee of Purchaser must be an entity controlling, controlled by, or under common control with Purchaser, AR Capital, LLC, American Realty Capital Properties, Inc., or Cole Real Estate Investments, Inc. (b) all of the Earnest Money must have been delivered in accordance herewith, (c) the Inspection Period shall be deemed to have ended, (d) the assignee of Purchaser shall assume all obligations of Purchaser hereunder, but Purchaser shall remain primarily liable for the performance of Purchaser's obligations until Closing occurs, following which the assigning party (but not the assignee) shall be relieved of all its obligations arising under this Agreement, (e) a copy of the fully executed written assignment and assumption agreement, together with notice to Seller of the Employer Identification Number for the assignee, shall be delivered to Seller at least ten days prior to Closing, and (f) the requirements in Section 12.17 are satisfied.
Section 12.2    Headings.  The article, section, subsection, paragraph and/or other headings of this Agreement are for convenience only and in no way limit or enlarge the scope or meaning of the language hereof.

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Section 12.3    Invalidity and Waiver.  If any portion of this Agreement is held invalid or inoperative, then so far as is reasonable and possible the remainder of this Agreement shall be deemed valid and operative, and, to the greatest extent legally possible, effect shall be given to the intent manifested by the portion held invalid or inoperative.  The failure by either party to enforce against the other any term or provision of this Agreement shall not be deemed to be a waiver of such party's right to enforce against the other party the same or any other such term or provision in the future.
Section 12.4    Governing Law.  This Agreement shall, in all respects, be governed, construed, applied, and enforced in accordance with the law of the State of Louisiana.
Section 12.5    Survival.  The provisions of this Agreement that contemplate performance after the Closing and the obligations of the parties not fully performed at the Closing (other than any unfulfilled closing conditions which have been waived or deemed waived by the other party) shall survive the Closing and shall not be deemed to be merged into or waived by the instruments of Closing.
Section 12.6    Entirety and Amendments.  This Agreement embodies the entire agreement between the parties and supersedes all prior agreements and understandings relating to the Property.  This Agreement may be amended or supplemented only by an instrument in writing executed by the party against whom enforcement is sought.  All Exhibits and Schedules attached hereto are incorporated herein by this reference for all purposes.
Section 12.7    Time.  Time is of the essence in the performance of this Agreement.
Section 12.8    Confidentiality; Press Releases.  Purchaser shall make no public announcement, press release or disclosure of the transactions contemplated under this Agreement, nor any information related to this Agreement, to outside brokers, media or third parties, before or after the Closing, without the prior written specific consent of Seller; provided, however, that Purchaser may, subject to the provisions of Section 4.7, make disclosure of this Agreement to its Permitted Outside Parties as necessary to perform its obligations hereunder and as may be required under laws or regulations applicable to Purchaser.  Without limiting the foregoing requirement for Seller approval, the names "The Woodmont Company" or "L&B Realty" shall not be used or referenced in any public announcement, press release or disclosure relating to the transactions contemplated under this Agreement without the prior written consent of Seller.  Purchaser acknowledges and agrees that the use of such name in any public announcement, press release or disclosure is not accurate and Purchaser will instruct Purchaser's partners, lenders, investors, brokers, agents, employees, officers, directors, attorneys and representatives (collectively, the "Purchaser Parties") to comply with this provision.   Purchaser, on behalf of itself and the Purchaser Parties, stipulates that the breach of the requirements of this Section 12.8 will cause irreparable harm to Seller for which damages may not constitute an adequate remedy.  Accordingly, Purchaser agrees, on its own behalf and on behalf of the Purchaser Parties, that any breach of the requirements of this Section 12.8 may be enjoined by an appropriate court order or judgment.  Seller's remedies are not limited to injunctive relief for a breach of the requirements of this Section 12.8, and all legal and equitable remedies will continue to be available to Seller.
Section 12.9    No Electronic Transactions.  The parties hereby acknowledge and agree this Agreement shall not be altered, amended or modified by electronic means.  Without limiting the generality of the foregoing, the parties hereby agree the transactions contemplated by this Agreement shall not be conducted by electronic means, except as specifically set forth in the "Notices" section of this Agreement.
Section 12.10    Notices.  All notices required or permitted hereunder shall be in writing and shall be served on the parties at the addresses set forth in Section 1.3.  Any such notices shall, unless otherwise provided herein, be given or served (a) by depositing the same in the United States mail, postage paid, 

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certified and addressed to the party to be notified, with return receipt requested, (b) by overnight delivery using a nationally recognized overnight courier, (c) by personal delivery, or (d) by electronic mail addressed to the electronic mail address set forth in Section 1.3 for the party to be notified with a confirmation copy delivered by the method permitted in clause (b) of this Section 12.10.  Notice given in accordance herewith for all permitted forms of notice other than by electronic mail, shall be effective upon the earlier to occur of actual delivery to the address of the addressee or refusal of receipt by the addressee.  Notice given by electronic mail in accordance herewith shall be effective upon the entrance of such electronic mail into the information processing system designated by the recipient's electronic mail address.  Except for electronic mail notices as described above, no notice hereunder shall be effective if sent or delivered by electronic means.  In no event shall this Agreement be altered, amended or modified by electronic mail or electronic record.  A party's address may be changed by written notice to the other party; provided, however, that no notice of a change of address shall be effective until actual receipt of such notice.  Copies of notices are for informational purposes only, and a failure to give or receive copies of any notice shall not be deemed a failure to give notice.  Notices given by counsel to the Purchaser shall be deemed given by Purchaser and notices given by counsel to the Seller shall be deemed given by Seller.
Section 12.11    Construction.  The parties acknowledge that the parties and their counsel have reviewed and revised this Agreement and agree that the normal rule of construction, to the effect that any ambiguities are to be resolved against the drafting party, shall not be employed in the interpretation of this Agreement or any exhibits or amendments hereto.
Section 12.12    Calculation of Time Periods.  Unless otherwise specified, in computing any period of time described herein, the day of the act or event after which the designated period of time begins to run is not to be included and the last day of the period so computed is to be included, unless such last day is a Saturday, Sunday or legal holiday for national banks in the location where the Property is located, in which event the period shall run until the end of the next day which is neither a Saturday, Sunday, or legal holiday.  The last day of any period of time described herein shall be deemed to end at 5:00 p.m. local time in the state in which the Real Property is located.
Section 12.13    Execution in Counterparts.  This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, and all of such counterparts shall constitute one Agreement.  To facilitate execution of this Agreement, the parties may execute and exchange by electronic mail counterparts of the signature pages, provided that executed originals thereof are forwarded to the other party on the same day by any of the delivery methods set forth in Section 12.9 other than electronic mail.
Section 12.14    No Recordation.  Without the prior written consent of Seller, there shall be no recordation of either this Agreement or any memorandum hereof, or any affidavit pertaining hereto, and any such recordation of this Agreement or memorandum or affidavit by Purchaser without the prior written consent of Seller shall constitute a default hereunder by Purchaser, whereupon Seller shall have the remedies set forth in Section 10.1 hereof.  In addition to any such remedies, Purchaser shall be obligated to execute an instrument in recordable form releasing this Agreement or memorandum or affidavit, and Purchaser's obligations pursuant to this Section 12.14 shall survive any termination of this Agreement as a surviving obligation.
Section 12.15    Further Assurances.  In addition to the acts and deeds recited herein and contemplated to be performed, executed and/or delivered by either party at Closing, each party agrees to perform, execute and deliver, but without any obligation to incur any additional liability or expense, on or after the Closing any further deliveries and assurances as may be reasonably necessary to consummate the 

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transactions contemplated hereby or to further perfect the conveyance, transfer and assignment of the Property to Purchaser.
Section 12.16    Discharge of Obligations.  The acceptance of the Deed by Purchaser shall be deemed to be a full performance and discharge of every representation and warranty made by Seller herein and every agreement and obligation on the part of Seller to be performed pursuant to the provisions of this Agreement, except those which are herein specifically stated to survive Closing.
Section 12.17    ERISA.  Under no circumstances shall Purchaser have the right to assign this Agreement to any person or entity owned or controlled by an employee benefit plan if Seller's sale of the Property to such person or entity would, in the reasonable opinion of Seller's ERISA advisors or consultants, create or otherwise cause a "prohibited transaction" under ERISA.  In the event Purchaser assigns this Agreement or transfers any ownership interest in Purchaser, and such assignment or transfer would make the consummation of the transaction hereunder a "prohibited transaction" under ERISA and necessitate the termination of this Agreement then, notwithstanding any contrary provision which may be contained herein, Seller shall have the right to terminate this Agreement.
Section 12.18    No Third Party Beneficiary.  The provisions of this Agreement and of the documents to be executed and delivered at Closing are and will be for the benefit of Seller and Purchaser only and are not for the benefit of any third party, and accordingly, no third party shall have the right to enforce the provisions of this Agreement or of the documents to be executed and delivered at Closing.
Section 12.19    Reporting Person.  Purchaser and Seller hereby designate the Title Company as the "reporting person" pursuant to the provisions of Section 6045(e) of the Internal Revenue Code of 1986, as amended.
Section 12.20    Mandatory Arbitration.  The parties have agreed to submit disputes to mandatory arbitration in accordance with the provisions of Exhibit H attached hereto and made a part hereof for all purposes.  Each of Seller and Purchaser waives the right to commence an action in connection with this Agreement in any court and expressly agrees to be bound by the decision of the arbitrator determined in Exhibit H attached hereto.  The waiver of this Section 12.20 will not prevent Seller or Purchaser from commencing an action in any court for the sole purposes of enforcing the obligation of the other party to submit to binding arbitration, the enforcement of an award granted by arbitration herein, or to obtain injunctive relief or specific performance with respect to the obligations of the other party hereunder.
Section 12.21     Like-Kind Exchange.  Purchaser may consummate the purchase of the Property as part of a so-called like-kind exchange (the "Exchange") pursuant to §1031 of the Internal Revenue Code of 1986, as amended, provided that (a) Purchaser shall notify Seller in writing no later than ten days before Closing that it intends to consummate this transaction as part of an Exchange, and shall provide with such notice all material information relating to the parties and properties to the Exchange; (b) all costs, fees, and expenses attendant to the Exchange shall be the sole responsibility of Purchaser, and Purchaser shall indemnify and hold harmless Seller from and against any such costs, fees, and expenses; (c) the Closing shall not be delayed or affected by reason of the Exchange nor shall the consummation or accomplishment of the Exchange be a condition precedent or condition subsequent to Purchaser's obligations and covenants under this Agreement; and (d) Seller shall not be required to acquire or hold title to any real property other than the Property for purposes of consummating the Exchange.  Purchaser agrees to defend, indemnify and hold Seller harmless from any liability, damages, or costs, including (without limitation) reasonable attorneys' fees, that may result from Seller's acquiescence to the Exchange.  Seller shall not, by this Agreement or acquiescence to the Exchange, (1) have its rights under this Agreement, including (without limitation) those 

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that survive Closing, affected or diminished in any manner or (2) be responsible for compliance with or be deemed to have warranted to Purchaser that the Exchange in fact complies with §1031 of the Internal Revenue Code of 1986, as amended.  The terms of this Section shall survive Closing.
Section 12.22    Disclosure.  Purchaser and Seller expressly acknowledge that Purchaser has been advised that certain venturers, members, shareholders, partners, directors and/or officers of Seller are licensed Texas real estate brokers.  Purchaser and Seller also acknowledge that Purchaser has been advised that Purchaser should have an abstract covering the Property examined by an attorney of Purchaser's own selection or should be furnished with or obtain a policy of title insurance.
Section 12.23    SEC S-X 3-14 Audit.  In order to enable Purchaser to comply with reporting requirements, Seller agrees to provide Purchaser and its representatives financial statements sufficient for Purchaser to comply with SEC Rule 3-14 of Regulation S-X, including Seller's most current financial statements relating to the financial operation of the Property for the current fiscal year and for the fiscal year prior to the year of Closing and upon request, support for certain operating revenues and expenses specific to the Property.  Seller understands that certain of such financial information may be included in filings required to be made by Purchaser with the U.S. Securities and Exchange Commission.  This Section 12.23 shall survive Closing for a period of one (1) year. In no event shall any information furnished by Seller under this Section 12.23 constitute an express or implied representation whatsoever of such financial statements or other information provided in this Section 12.23.
Section 12.24    Kohl’s Lease.  If, prior to Closing, Seller has not delivered evidence reasonably acceptable to Purchaser that Seller and Kohl’s have definitively settled the dispute regarding paving work described in Kohl’s tenant estoppel certificate dated July 25, 2014, then at Closing, Seller agrees to provide Purchaser with a credit against the Purchase Price in the amount of $5,000.00, in which event Purchaser will assume the obligation to pay Kohl's $5,000.00 upon receipt of a settlement agreement  executed by Kohl's and Seller or other evidence reasonably satisfactory to Purchaser that the dispute has been settled.  In addition, a portion of the sales proceeds in the amount of $18,056.98 (the "Kohl's Escrowed Funds") will be withheld in escrow pursuant to the Lease Escrow Agreement described in Section 8.2 above, and will be disbursed to Purchaser for any leasehold owner’s title insurance policy that Kohl’s may require Purchaser to obtain post-Closing under the Kohl’s lease and as otherwise provided therein; provided, however, if Kohl's has confirmed in writing within a certain time period to be agreed upon by Purchaser and Seller in the Lease Escrow Agreement, that it will not require the title policy, the Kohl's Escrowed Funds will be disbursed to Seller.  In addition, Purchaser shall receive a credit at Closing in the amount of $35,000 (the “Kohl’s SDA Credit”) relating to an amount payable to Kohl’s pursuant to the Second Amendment to Site Development Agreement dated November 12, 2012, between Seller and Kohl’s, if such amount has not been requested by Kohl’s and paid by Seller at or prior to Closing.  In consideration of receiving the Kohl’s SDA Credit, Purchaser agrees (notwithstanding anything in the contrary set forth herein) to assume the obligation to pay such amount to Kohl’s even though the work to which such payment relates was performed during Seller’s period of ownership, with such obligation surviving the Closing.

[SIGNATURE PAGES AND EXHIBITS FOLLOW]

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SIGNATURE PAGE TO AGREEMENT OF 
PURCHASE AND SALE 
BY AND BETWEEN 
HOUMA CROSSING, LTD. 
AND 
ARCP ACQUISITIONS, LLC
IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year written below.    
	
		
	SELLER:

WITNESSES:

/s/ Noelle Garsek
Print Name: Noelle Garsek

/s/ Kathy E. Barbee
Print Name: Kathy E. Barbee

Date executed by Seller
September 24, 2014
	HOUMA CROSSING, LTD.,
a Texas limited partnership

By: Woodmont Houma GP, L.L.C.,
a Texas limited liability company
its Managing General Partner

By: /s/ Stephen Coslik
Name: Stephen Coslik
Title: Managing Member

	PURCHASER:

WITNESSES:

/s/ Gale Toombs
Print Name: Gale Toombs

/s/ Katie Dunham
Print Name: Katie Dunham

Date executed by Purchaser

September 24, 2014

	ARCP ACQUISITIONS, LLC,
a Delaware limited liability company

By: /s/ Todd J. Weiss
Name: Todd J. Weiss
Title: Authorized Officer

-33-Walgreens 10 Pack PSA - Exhibit 10.4

Exhibit 10.4

MASTER PURCHASE AND SALE AGREEMENT
(WITH ESCROW INSTRUCTIONS)

This Master Purchase and Sale Agreement (this “Agreement”) is entered into effective as of July 16, 2014 (the “Effective Date”) by and between PENN 1031 LLC, a Michigan limited liability company and WOOD 1031 LLC, a Michigan limited liability company, collectively as Seller (“Seller”), and ARCP ACQUISITIONS, LLC, a Delaware limited liability company, as Buyer (“Buyer”).
RECITALS
A.  Buyer desires to purchase certain real estate assets (each, as more completely defined below, a “Property” and, collectively, the “Properties”) from Seller and Seller desires to sell the Properties to Buyer, all as more particularly set forth in this Agreement.  The Properties are leased to Walgreen Co. and Walgreen Louisiana Co, Inc. (“Tenant”) pursuant to the lease agreements described on Exhibit A attached hereto (including any amendments or supplements and any guaranties, security deposits, or other security relating thereto, each, a “Lease” and, collectively, the “Leases”).  Exhibit A also sets forth the street address and allocated amount of the Purchase Price for each of the Properties.
B.  In consideration of the mutual covenants and undertakings set forth in this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Seller and Buyer (each, a “Party” and, collectively, the “Parties”) agree as follows:
SUMMARY OF TERMS
Certain key terms of this Agreement are summarized below, but remain subject to the applicable detailed provisions set forth elsewhere in this Agreement.
		
	Properties:
	Fee title to those certain parcels of real property legally described on Exhibit A-1 through Exhibit A-10 attached hereto (the “Land”), together with all buildings thereon (each, a “Building” and, collectively, the “Buildings”) and including the related property and rights described in this Agreement.  

		
	Purchase Price:
	$52,535,587.00 (the “Purchase Price”).

		
	Deposit:
	$500,000.00 (such amount, together with all interest earned or accrued thereon, the “Deposit”).

		
	Study Period:
	Thirty (30) days. 

		
	Closing Date:
	Ten (10) days after expiration of the Study Period.

		
	Escrow Agent:
	Chicago Title Insurance Company (“Escrow Agent”)

1515 Market Street, Suite 1325
Philadelphia, PA 19102-1930
Attention:  Edwin G. Ditlow
Tel:  (215) 875-4184
Fax:  (215) 875-1203
Email:  ditlowe@ctt.com

1
Master Purchase and Sale Agreement
Walgreens—10 Pack

Notices Addresses for the Parties:

		
	If to Seller:  
	Jaffe, Raite, Heuer & Weiss, P.C.

27777 Franklin Road, Suite 2500
Southfield, MI 48034
Attn:  Mark D. Rubenfire
Tel:  (248) 727-1446
Fax:  (248) 3513082
Email:  mrubenfire@jaffelaw.com

		
	with a copy to:  
	Jaffe, Raite, Heuer & Weiss, P.C.

27777 Franklin Road, Suite 2500
Southfield, MI 48034
Attn:  Mark D. Rubenfire
Tel:  (248) 727-1446
Fax:  (248) 3513082
Email:  mrubenfire@jaffelaw.com

If to Buyer:    ARCP Acquisitions, LLC
c/o American Realty Capital Properties, Inc.
2325 E. Camelback Road, Suite 1100
Phoenix, AZ  85016
Attn:  Ryan Reimers
Tel:  (704) 626-4403
Fax:  (646) 861-7810
Email:  rreimers@arcpreit.com

with a copy to:    ARCP Acquisitions, LLC
c/o American Realty Capital Properties, Inc.
2325 E. Camelback Road, Suite 1100
Phoenix, AZ  85016
Attn:  Kelly Levan
Tel:  (704) 626-4413
Fax:  (212) 415-6507
Email:  klevan@arcpreit.com

		
	Notice Provisions:
	See Section 22.

Seller’s Diligence Contact for scheduling physical inspections of the Property:
Name: Eric Endelman
Tel: (248) 727-1409
Email: eendelman@jaffelaw.com

[remainder of page intentionally left blank]

2
Master Purchase and Sale Agreement
Walgreens—10 Pack

1.PURCHASE AND SALE OF PROPERTIES.  Seller agrees to sell to Buyer, and Buyer agrees to purchase from Seller, the Properties upon and subject to the terms and conditions of this Agreement.  As used in this Agreement, with respect to each separate Property: 
(a)“Real Property” means and includes (i) the respective parcel of the Land, the respective Building, and all other buildings, improvements, building systems and fixtures located upon such Land; (ii) all tenements, hereditaments, easements and appurtenances pertaining to such Land or such Building; and (iii) all mineral, water, irrigation and other property rights of Seller, if any, running with or otherwise pertaining to such Land; and 
(b)“Property” means and includes (i) the Real Property; (ii) the Lease; (iii) all of Seller’s interest, if any, in and to any equipment, machinery, furniture, furnishings and other tangible personal property located upon or used in connection with the Real Property (the “Personalty”); and (iv) all of Seller’s interest in and to the following affecting or relating to the Property: (1) all warranties and guaranties (the “Warranties”); (2) all development rights, utility capacities, approvals, permits and licenses (the “Permits”); (3) all surveys, engineering reports, environmental reports, plans, drawings, specifications, construction contracts, subcontracts, architectural and engineering agreements, and similar documents and agreements relating to the design, development, construction, maintenance or repair of the Property (the “Property Documents”); and (4) all contractual rights, trade names, trademarks, intellectual property and other intangibles (the “Intangibles”).  
2.    PURCHASE PRICE.  The Purchase Price will be paid by Buyer as provided below.

(a)    The Deposit will be deposited in escrow with Escrow Agent in cash or other immediately available funds not later than three (3) business days following the receipt by Escrow Agent of a fully-executed original of this Agreement.

(b)    Buyer will take title at Closing subject to the loan in the original principal balance of $33,850,000.00 made by Capmark Bank, a Utah industrial bank (“Lender”) to Wood 1031 LLC and subject to the loan in the original principal balance of $8,900,000.00 made by Lender to Penn 1031 LLC ( collectively, the “Existing Debt”).  As of the Effective Date the Existing Debt has an estimated outstanding principal balance of $42,750,000.00. 

(c)    Buyer will deposit the balance of the Purchase Price (the “Cash Payment”) in escrow with Escrow Agent in cash or other immediately available funds on or before the close of escrow (the “Closing”), which Cash Payment will be an amount equal to the Purchase Price minus the Deposit and minus the outstanding principal balance of the Existing Debt as of the Closing Date, as such Cash Payment amount may be increased or decreased to account for any prorations, credits, or other adjustments required by this Agreement.  

(d)    The Purchase Price is based on a capitalization rate of 6.43% and an assumed annual net rent of $3,375,580.92 at the rental rate in effect as of the Effective Date.  If, prior to the Closing, Buyer determines (and Seller reasonably agrees) that the actual annual net rent is a different amount, then the Purchase Price will be adjusted up or down accordingly to equal such actual net rent amount at the above-stated capitalization rate.  

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Master Purchase and Sale Agreement
Walgreens—10 Pack

(e)    The “Opening of Escrow” means the receipt, countersignature and distribution by Escrow Agent of a fully-executed original of this Agreement, together with the receipt by Escrow Agent of the Deposit.  Seller and Buyer agree to the escrow instructions attached hereto as Exhibit F and incorporated herein (the “Escrow Instructions”). 

(f)    Seller and Buyer instruct Escrow Agent to place the Deposit in a federally insured interest-bearing account.  The Deposit will be applied as follows: (i) if Buyer terminates this Agreement in any situation where Buyer is permitted or deemed to do so under this Agreement (including without limitation any failure of a condition precedent under Section 13 below), the Deposit will be paid immediately to Buyer, and neither of the Parties will have any further liability or obligation under this Agreement, except with respect to any obligations which are expressly stated in this Agreement to survive a termination prior to Closing (the “Surviving Obligations”); (ii) if Seller terminates this Agreement as the result of an uncured default by Buyer as provided in Section 21(b) below, the Deposit will be paid to Seller; and (iii) if escrow closes, the Deposit will be credited to Buyer, applied against the Purchase Price and paid to Seller at Closing.  

3.    Debt Assumption.  
(a)    At Closing, Buyer or its assignee intends to take title to the Property subject to the unpaid principal balance of the Existing Debt as of Closing.  The documents and agreements that were executed by Seller to evidence and secure the Existing Debt are referred to below as the “Loan Documents.”  Buyer’s obligation to close the purchase of the Property under this Agreement is expressly contingent upon (i) Lender having provided its written consent, on terms and conditions reasonably acceptable to Seller and Buyer (the “Lender Consent”), to the transfer of the Property to Buyer subject to the Existing Debt (the “Loan Assumption”), and (ii) Buyer, Lender and (to the extent applicable) Seller agreeing upon the final forms of the loan assumption documents (the “Assumption Document Approval”).  Within fifteen (15) days after the Effective Date, Buyer will complete and submit to Lender a loan application form and such other documentation as may reasonably be required by Lender as part of such loan application (collectively, the “Loan Application”).  Notwithstanding the foregoing, Buyer is not obligated to pay or incur any non-refundable Lender or third-party fees or costs related to the proposed Loan Assumption. 
(b)    Buyer and Seller will actively, diligently and in good faith pursue the Lender Consent and the Assumption Document Approval, including without limitation (i) cooperating with Lender’s customary requests for delivery of information, (ii) reviewing, negotiating and entering into commercially reasonable loan assumption documents in form and content as customarily required of similarly situated sellers and buyers in similar transactions, and (iii) complying with any other commercially reasonable requirements and conditions of Lender in connection with the assumption of the Existing Debt as are customarily required by institutional lenders in similar transactions.  If Buyer and Seller are unable, despite their diligent good faith efforts, to obtain the Lender Consent within ninety (90) days after the Effective Date, then Buyer and Seller shall have the right to terminate this Agreement by providing written notice to the other Party and Escrow Agent, whereupon Escrow Agent will refund the Deposit to Buyer, and neither of the Parties will have any further liability or obligation under this Agreement except for any Surviving Obligations.  
(c)    Seller will pay all fees, costs and expenses charged by Lender associated with the Loan Assumption, including without limitation any application fees, assumption fees, inspection fees, engineering fees and attorneys’ fees charged by Lender at Closing (the “Assumption Costs”).  Each of Buyer and Seller will pay its own attorneys’ fees and all costs and 

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expenses incurred by it with respect to the Loan Assumption.  Seller’s obligation to pay such amounts shall survive Closing or any earlier termination of this Agreement.
(d)    Notwithstanding the foregoing, Buyer shall not be obligated to do any of the following in order to obtain the Lender Consent or the Assumption Document Approval:  (i) reduce or pay down any portion of the outstanding principal balance of the Existing Debt, excluding any scheduled amortization thereof occurring after Closing; (ii) fund any additional reserves, or fund or otherwise cure any existing arrearages; (iii) provide any guaranty or indemnity with respect to the Existing Debt, other than providing replacement guarantees and indemnities executed by Cole Operating Partnership V, LP, a Delaware limited partnership Buyer’s parent entity in substantially the same form as the most recent existing guarantees and indemnities with respect to the Existing Debt, if any; (iv) amend the Loan Document in any manner that would increase the obligations or reduce the rights of the borrower or any guarantors/indemnitors thereunder; (v) assume or suffer any liability for any prior breach or default of Seller or any prior borrower, guarantor or indemnitor under the Loan Documents; (vi) assume the Existing Debt if any event of default has been declared by Lender and has not been fully cured to Lender’s complete satisfaction; or (vii) assume the Existing Debt unless the Lender agrees to permit (without further consent or fees) transfers of direct and indirect interests in the new borrower among parties which are controlled by or under common control with either the new borrower or American Realty Capital Properties, Inc. (“ARCP”), and unless the transfer of shares in ARCP and any other real estate investment trust related to ARCP which has a beneficial interest in the new borrower are unrestricted.
4.    DELIVERY OF SELLER’S DILIGENCE MATERIALS.  Seller will deliver to Buyer, not later than three (3) business days after the Effective Date and at no cost to Buyer, all information in Seller’s possession or control relating to the Properties, including without limitation all materials and information described on Schedule 1 attached to this Agreement (collectively, “Seller’s Diligence Materials”).  If Seller obtains new or updated information regarding the Properties prior to Closing, Seller will immediately notify Buyer of such fact and will promptly deliver all such supplemental information to Buyer.  Seller designates the contact person(s) so named in the Summary of Terms above as the representative of Seller through which Buyer may schedule any physical inspections of the Property (“Seller’s Diligence Contact”).
5.    BUYER’S STUDY PERIOD.  
(a)Buyer will have until 11:59 p.m. Eastern Time (ET) on the thirtieth (30th) day after the Effective Date (such period, the “Study Period”), within which to conduct and approve any investigations, studies or tests desired by Buyer, in Buyer’s sole discretion, to determine the feasibility of acquiring the Properties (collectively, “Buyer’s Diligence”).
(b)Seller grants to Buyer and Buyer’s agents, employees and contractors the right to enter upon the Properties, at any time or times prior to Closing, to conduct Buyer’s Diligence.  Buyer will notify Seller’s Diligence Contact prior to any entry and will not unreasonably interfere with or disrupt Tenant’s business operations at each Property.  Buyer will indemnify and hold Seller harmless from and against any damage, injury, claim or lien caused by the activities of Buyer or its agents on the Properties, except that Buyer will have no obligation to indemnify Seller as a result of the discovery or presence of any pre-existing conditions, including any hazardous materials.  Buyer will also maintain commercial general liability insurance with limits of at least $1,000,000 per occurrence and $2,000,000 aggregate and workers compensation insurance and will provide a certificate of insurance evidencing the same to Seller upon request.  The foregoing indemnity and insurance obligations of Buyer shall survive any termination of this Agreement.  

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(c)If, at any time prior to the expiration of the Study Period, Buyer elects in its sole discretion not to proceed to acquire all of the Properties, Buyer may terminate this Agreement by giving written notice of such termination to Seller and Escrow Agent, whereupon the Deposit will promptly be paid by Escrow Agent to Buyer and neither of the Parties will have any further liability or obligation under this Agreement except for any Surviving Obligations.  Buyer may expressly waive this termination right at any time prior to the end of the Study Period by giving written notice of such waiver to Seller and Escrow Agent, and the Study Period shall be deemed to end upon Buyer’s giving of such a waiver notice.  If this Agreement is not so terminated, then except as otherwise provided in this Agreement the Deposit will become non-refundable to Buyer, and this Agreement will continue in full force and effect.    
(d)The Parties expressly agree that the mutual agreements, covenants, obligations and undertakings set forth in this Agreement constitute sufficient consideration for each Party to create a legally binding agreement notwithstanding that Buyer may freely terminate this Agreement and receive a return of the Deposit at any time prior to the end of the Study Period.
		
	6.
	TITLE AND SURVEY REVIEW.  

(a)Promptly after the Effective Date, Escrow Agent will deliver to Buyer and Seller a current title commitment on each Property (as may be updated, a “Commitment”) for the issuance to Buyer of an ALTA extended coverage owner’s policy of title insurance (the “Owner’s Policy”) for such Property, together with complete, legible copies of all requirement and exception documents referenced in each such Commitment.  
(b)Promptly after the Effective Date, Buyer will cause a licensed surveyor to complete and deliver to Escrow Agent, Seller and Buyer a current, certified ALTA As-Built survey of each Property (each, a “Survey”).  
(c)For each Property, Buyer will, by giving written notice (the “Title Notice”) to Seller and Escrow Agent prior to the expiration of the Study Period, either (i) approve the condition of title, or (ii) identify any matters set forth in the Commitment or the Survey for such Property to which Buyer objects (collectively, the “Objectionable Matters”).  If no Title Notice for a Property is given by Buyer to Seller before the end of the Study Period, then Buyer shall be deemed to have disapproved of the condition of title for such Property and elected to terminate this Agreement as to such Property.  Any such terminated Property will be treated as a “Removed Property” as provided in Section 5(c) above, with proportionate reductions in the Purchase Price and Deposit.  If no Title Notice for any of the Properties is given by Buyer to Seller before the end of the Study Period, then Buyer shall be deemed to have elected to terminate this Agreement as to all the Properties, in which case the Deposit will immediately be paid by Escrow Agent to Buyer, and neither of the Parties will have any further liability or obligation under this Agreement except for any Surviving Obligations. 
(d)If a Title Notice identifies any Objectionable Matters, Seller will notify Buyer in writing (“Seller’s Title Response”) within five (5) business days after receiving the Title Notice whether Seller will cure those Objectionable Matters prior to the Closing Date in the manner requested by Buyer.  If Seller does not agree to cure all the Objectionable Matters, then Buyer may elect, by giving written notice to Seller and Escrow Agent within five (5) business days after receiving Seller’s Title Response, to either (i) proceed with the acquisition of the subject Property notwithstanding the Objectionable Matters which Seller has not agreed to cure; (ii) terminate this Agreement as to the Property corresponding to such Objectionable Matters, whereupon such terminated Property 

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will be treated as a “Removed Property” as provided in Section 5(c) above (with proportionate reductions in the Purchase Price and Deposit); or (iii) terminate this Agreement as to all the Properties, in which case the Deposit will immediately be paid by Escrow Agent to Buyer, and neither of the Parties will have any further liability or obligation under this Agreement except for any Surviving Obligations.
(e)If any Commitment is amended to include new exceptions or requirements after Buyer’s delivery of the Title Notice related to such Commitment, Buyer will have five (5) business days after Buyer’s receipt of the amended Commitment (and copies of any documents identified in the new exceptions or new requirements) within which to review and, if desired, object in writing to such new matters as Objectionable Matters.  If Buyer so objects, the procedures and timelines set forth above will apply to govern any such objection, Seller’s response thereto and Buyer’s rights thereafter.  
(f)Notwithstanding the foregoing, in all events Seller will, at or prior to Closing, (i) pay in full and cause to be canceled and discharged (or otherwise cause Escrow Agent to insure over) all mechanics’ and contractors’ liens encumbering any of the Properties as a result of work performed by or on behalf of Seller; (ii) pay in full all past due ad valorem taxes and assessments of any kind constituting a lien against any of the Properties; and (iii) cause to be released all loan security documents which encumber any of the Properties and any other monetary lien or encumbrance caused or created by Seller against any of the Properties.
7.    TENANT RIGHT OF FIRST REFUSAL.  The Parties agree that Buyer will be incurring expenses related to Buyer’s Diligence, despite the fact that one or more of the Leases may contain a right of first refusal or right of first offer in favor of Tenant (either such right, a “ROFR”).  If any of the Leases contains a ROFR and Tenant delivers notice of its intent to exercise the ROFR or actually exercises the ROFR, then Buyer may, at Buyer’s option by written notice to Seller, (a) terminate this Agreement as to any Property affected by such exercised ROFR, whereupon such terminated Property will be treated as a “Removed Property” as provided in Section 5(c) above (with proportionate reductions in the Purchase Price and Deposit), and Seller will promptly reimburse Buyer for all reasonable out-of-pocket and third-party expenses (including without limitation reasonable attorneys’ fees and costs) incurred by Buyer in connection with Buyer’s Diligence or this transaction related to each such Removed Property; or (b) terminate this Agreement as to all the Properties, in which case the Deposit will immediately be paid by Escrow Agent to Buyer, Seller will promptly reimburse Buyer for all reasonable out-of-pocket and third-party expenses (including without limitation reasonable attorneys’ fees and costs) incurred by Buyer in connection with Buyer’s Diligence or this transaction, and neither of the Parties will have any further liability or obligation under this Agreement except for any Surviving Obligations.  Seller will provide to Buyer and Escrow Agent a written waiver by Tenant of all ROFR rights (other than any exercised as provided above) prior to the end of the Study Period.  Such waiver will be requested by Seller from Tenant within two (2) business days after the Effective Date.

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8.    CLOSE OF ESCROW.  The Closing will occur on or before 5:00 p.m. ET on the tenth (10th) day after the later of (a) the expiration of the Study Period, and (b) the Assumption Document Approval, or on such earlier date as Buyer may elect by giving written notice to Seller and Escrow Agent (the “Closing Date”).  Buyer may extend the Closing Date for up to an additional fifteen (15) days by giving written notice of such extension to Seller and Escrow Agent prior to the original Closing Date.  At Closing, the funds and documents deposited into escrow will be appropriately disbursed and distributed by Escrow Agent, and Seller will deliver possession of the Property to Buyer, all as required by and specified under this Agreement.
		
	9.
	THE TRANSFER DOCUMENTS.  For each individual Property:

(a)The Real Property will be conveyed by a special warranty deed in substantially the form attached hereto as Exhibit B (the “Deed”).  The Personalty will be conveyed by a bill of sale in substantially the form attached as Exhibit C (the “Bill of Sale”).  The Lease will be assigned by an assignment and assumption of lease in substantially the form attached as Exhibit D (the “Assignment of Lease”).  The Permits, Warranties, Property Documents and Intangibles will be assigned by an assignment agreement in substantially the form attached as Exhibit E (the “Assignment Agreement”).  The Parties will supplement the foregoing with such additional documents, if any, as may reasonably be required to properly convey specific items of the Property.  If the transfer of any Warranties requires the approval of the applicable warrantor or the satisfaction of any other conditions to such transfer, Seller will obtain such approvals and satisfy all such conditions by the Closing Date.  The Deed, Bill of Sale, Assignment of Lease, Assignment Agreement, and the other closing documents required under this Agreement or otherwise delivered by the Parties at Closing for each Property are collectively referred to as the “Transfer Documents”.  Seller and Buyer will deposit duly executed and (as appropriate) acknowledged originals of each of the Transfer Documents with Escrow Agent not later than one (1) business day prior to the Closing Date.  
(b)If Seller holds any transferable contracts or agreements relating to the upkeep, repair, maintenance, management or operation of a Property (“Operating Contracts”), Seller will provide copies thereof to Buyer as a part of Seller’s Diligence Materials.  Buyer may elect, by written notice given to Seller prior to the end of the Study Period, to take an assignment of any or all of the Operating Contracts.  If Buyer so elects, the Parties will execute and include in the applicable Transfer Documents an assignment agreement appropriate to effect such assignment, and any payments due under the assigned Operating Contracts will be equitably prorated as of the Closing Date.  Seller will terminate, effective as of the Closing Date and at Seller’s sole expense, any Operating Contracts for a Property that are not so expressly assigned to Buyer.
(c)If Buyer gives Seller notice within ten (10) days after the Opening of Escrow that Buyer desires to obtain a subordination, non-disturbance and attornment agreement ("SNDA") from Tenant as to one or more Properties, Seller will request (pursuant to the applicable provisions of the Lease, if any) and use commercially reasonable efforts to obtain a SNDA from Tenant, either on the form specified in such Lease or, if none, on Buyer’s preferred form delivered to Seller with Buyer’s request notice; provided, that unless Tenant is required by the terms of the applicable Lease to deliver a SNDA, the receipt of the SNDA by Buyer will not be a condition to Closing.
10.    ESTOPPEL CERTIFICATE.  As to each Property, Seller will deliver to Buyer, not later than five (5) days prior to the Closing Date, an original estoppel certificate, on Tenant’s standard form, which (a) is dated not more than thirty (30) days prior to the Closing Date; (b) is executed by Tenant; (c) is addressed to (i) Buyer; (ii) as to each Property, to a “special purpose entity” to be 

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formed to take title to such Property; (iii) the Lender; and (iv) their respective successors and assigns; (d) verifies the basic facts of the applicable Lease (term, rental, expiration date, any options, etc.) and contains no assertions adverse or contrary to the provisions of such Lease; (e) confirms that there are no defaults by the landlord under such Lease, no unperformed or “punchlist” construction items, and no unpaid tenant improvement allowances, inducements or leasing commissions; and (f) if Tenant’s obligations under such Lease have been guaranteed by another person or entity, also covers such guaranty and is signed by such guarantor(s).  
11.    CLOSING COSTS.  As to each Property, Buyer and Seller will split, according to local custom where the Property is located, the cost of the Owner’s Policy, any related search or exam fees.  As to each Property, Seller will pay (a) the cost of any endorsements required for Seller’s cure of any Objectionable Matters; (b) the costs of releasing all liens, judgments, and other encumbrances that are to be released and of recording such releases; (c) one-half the fees and costs due Escrow Agent for its services; (d) any transfer taxes, documentary taxes, mansion taxes, recording charges, and other such fees or charges associated with the sale and conveyance of such Property; and (e) all other costs to be paid by Seller under this Agreement.  As to each Property, Buyer will pay (i) the cost of the Survey; (ii) one-half the fees and costs due Escrow Agent for its services; (iii) the cost of any endorsements issued in connection with such Owner’s Policy other than endorsements required for Seller’s cure of Objectionable Matters and (iv) all other costs to be paid by Buyer under this Agreement.  Except as otherwise provided in this Agreement, Seller and Buyer will each be solely responsible for and bear all of their own expenses, including without limitation any expenses of legal counsel, accountants, and other advisors incurred at any time in connection with pursuing or consummating the transactions contemplated hereby.  Any other closing costs for a Property that are not specifically designated as the responsibility of either Party in this Agreement will be paid by Seller and Buyer according to the usual and customary allocation of the same by Escrow Agent for such Property’s locale.  Seller agrees that all closing costs and charges payable by Seller may be deducted from Seller’s proceeds otherwise payable to Seller at Closing.  Buyer will deposit with Escrow Agent sufficient cash to pay all of Buyer’s closing costs and charges.    
12.    PRORATIONS.  
(a)    The Parties will each execute and deliver to Escrow Agent for the Closing a closing statement for each Property setting forth the portion of the Purchase Price, and all closing credits, prorations, charges, costs and adjustments contemplated by this Agreement, allocable to such Property.  All prorations will be calculated as of the Closing Date by Escrow Agent, based upon the latest available information, with income and expense for the Closing Date being allocated to Buyer.  Buyer will receive a credit for any rent paid or payable by Tenant for the period beginning with and including the Closing Date through and including the last day of the month in which Closing occurs.  All other credits and charges to Buyer and Seller will be similarly prorated as of the Closing Date.  Real estate taxes and assessments, if not the sole responsibility of Tenant under the respective Lease, will be prorated on an accrual basis and, if actual amounts are not available, will be based upon the current valuation and latest available tax rates or assessments.  All pre-paid or abated rents or deposit amounts (including any tax or expense escrows and any security deposits) held by Seller under a Lease, if any, will be paid to Buyer in the form of a credit against the Purchase Price.  Seller will timely perform any tax or expense reconciliations that may be required under the Lease to the extent applicable to Seller’s period of ownership.  If Closing occurs on or after the twentieth (20th) day of the calendar month, the monthly scheduled rent amount(s) payable to the landlord under each respective Lease for the full calendar month following the month in which Closing occurs will be credited to Buyer at Closing (and, in such event, Seller will be 

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entitled to receive and retain such credited amounts when paid by Tenant).  If after Closing either Party receives any rents or other amounts that properly belong to the other Party based upon the Closing prorations, such amounts will be immediately remitted to such other Party.
(b)    If after Closing either Party discovers any errors, or receives additional information, indicating that the prorations were inaccurate, such Party will promptly notify the other and the Parties will correctly re-prorate the amounts in question.  No such correction will be required later than twelve (12) months after the Closing Date unless prior to such date the Party seeking the correction has given a written notice to the other Party specifying the nature and basis for such correction; provided, however, that if a correction is sought because current tax or assessment bills for a Property were not available as of Closing, the correction period with respect to the closing proration of such taxes or assessments for that Property will if needed continue beyond such 12-month period until thirty (30) days after Buyer’s receipt of the applicable bills.  In the event of any re-proration under this Section, the Party owing funds will within thirty (30) days after determination remit to the other Party the amount shown to be due.  The provisions of this Section 12 shall survive Closing.
13.    BUYER’S CONDITIONS PRECEDENT.  In addition to all other conditions precedent set forth in this Agreement, Buyer’s obligations to close escrow and complete the purchase of each, and all, of the Properties under this Agreement are expressly subject to the following with respect to each Property:
(a)Seller’s deposit with Escrow Agent, for delivery to Buyer at Closing, of the executed original Transfer Documents;
(b)Seller’s delivery to Buyer of the estoppel certificate as provided in Section 10 above;
(c)Seller’s deposit with Escrow Agent of (i) Escrow Agent’s customary form of “Owner’s Affidavit” and (ii) such additional affidavits, undertakings or other documents as may be reasonably required by Escrow Agent to allow for the deletion of any mechanics’ lien exceptions and other standard exceptions from the Owner’s Policy; 
(d)Escrow Agent’s irrevocable commitment to issue the Owner’s Policy in the amount of the Purchase Price in the form approved by Buyer pursuant to the terms of Section 6;
(e)Seller’s deposit with Escrow Agent of a letter from Seller to Tenant, complying with the notice requirements of the respective Lease and in form reasonably satisfactory to Buyer, directing that future rent under the Lease be paid to Buyer;
(f)Seller’s delivery to Buyer at Closing of the original, fully-executed Lease (to the extent in the possession of Seller or Seller’s agents) and, if Seller is not the original landlord under any Lease, all assignments necessary to establish that Seller is the successor-in-interest to the landlord’s rights under such Lease; and
(g)Seller’s delivery to Buyer of all Warranties, Permits, and Property Documents, if any, in the possession of Seller or Seller’s agents (including without limitation any warranties covering the roof or any other part of the Building); any Intangibles capable of physical delivery; and any non-proprietary leasing and property manuals, files and records applicable to or useful in connection with the continued operation, leasing and maintenance of such Property.

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(h)The Assumption Document Approval.
If the foregoing conditions have not been satisfied by the scheduled Closing Date, then Buyer will have the right, at Buyer’s sole option and without limiting any other right or remedy of Buyer, to extend Closing for such amount of time as Buyer deems reasonably necessary to allow Seller to satisfy such conditions, by giving written notice of such extension to Seller and Escrow Agent.
14.    NON-FOREIGN AFFIDAVIT.  Seller will deposit with Escrow Agent prior to Closing a sworn affidavit (the “Non-Foreign Affidavit”) properly containing such information as is required by Section 1445(b)(2) of the Internal Revenue Code of 1986, as amended (the “Tax Code”).  If Seller does not timely furnish the Non-Foreign Affidavit, Buyer may withhold (or direct Escrow Agent to withhold) from the Purchase Price the amount required to be so withheld pursuant to Section 1445(a) of the Tax Code, and such withheld funds will be deposited with the Internal Revenue Service as required by such Section 1445(a) and the regulations promulgated thereunder.  The amount withheld, if any, shall nevertheless be deemed to be part of the Purchase Price paid to Seller.
15.    BROKER’S COMMISSION.  The Parties warrant to one another that they have not dealt with any finder, broker or realtor in connection with this Agreement.  If any person asserts a claim to any other finder’s fee, brokerage commission or similar compensation in connection with this Agreement, the Party under whom the finder or broker is claiming will indemnify, defend and hold harmless the other Party from and against any such claim and all costs, expenses and liabilities incurred in defending against such claim, including without limitation reasonable attorneys’ fees and court costs.  The provisions of this Section shall survive Closing or any earlier termination of this Agreement.  
16.    AS-IS CONVEYANCE.  BUYER AGREES THAT, UPON THE CLOSING THEREOF, BUYER SHALL BE DEEMED TO HAVE ACCEPTED THE APPLICABLE PROPERTY IN ITS THEN EXISTING CONDITION, “AS IS, WHERE IS AND WITH ALL FAULTS” WITHOUT REPRESENTATION OR WARRANTY OF ANY KIND OR NATURE BY SELLER EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT OR THE APPLICABLE TRANSFER DOCUMENTS.  WITHOUT IN ANY MANNER LIMITING THE GENERALITY OF THE FOREGOING, BUYER ACKNOWLEDGES THAT THE CONSUMMATION OF THE TRANSACTION CONTEMPLATED BY THIS AGREEMENT SHALL SIGNIFY THAT BUYER AND IT AND ITS REPRESENTATIVES HAVE FULLY INSPECTED THE PROPERTY, AND THE LEASES AND ARE FULLY FAMILIAR WITH THE FINANCIAL AND PHYSICAL (INCLUDING, WITHOUT LIMITATION, ENVIRONMENTAL) CONDITION THEREOF, AND THAT THE PROPERTIES WILL BE PURCHASED BY BUYER NOT IN RELIANCE ON ANY AGREEMENT, UNDERSTANDING, CONDITION, WARRANTY (INCLUIDING, WITHOUT LIMITATION, WARRANTIES OF HABITABILITY, MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE) OR REPRESENTATION MADE BY SELLER OR ANY AGENT, EMPLOYEE, MEMBER, OFFICER OR PRINCIPAL OF SELLER OR ANY OTHER PARTY (EXCEPT FOR REPRESENTATIONS EXPRESSLY PROVIDED IN THIS AGREEMENT AND IN THE DEED TO BE DELIVERED AT CLOSING) AS TO THE FINANCIAL OR PHYSICAL CONDITION OF THE PROPERTIES OR THE AREAS SURROUNDING THE PROPERTIES, OR AS TO ANY OTHER MATTER WHATSOVER.  BUYER SHALL ACCEPT THE PROPERTIES AT THE TIME OF CLOSING IN SUBSTANTIALLY THE SAME CONDITION AS THE SAME IS IN AS OF THE EFFECTIVE DATE, AS SUCH CONDITION SHALL HAVE CHANGED BY REASON OF NORMAL WEAR AND TEAR AND NATURAL DETERIORATION.  

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17.    RISK OF LOSS.  Seller shall bear all risk of loss resulting from or related to damage of or to a Property or any part thereof which may occur prior to Closing (a “Casualty”).  Seller shall also bear all risk of loss resulting from or related to a taking or condemnation of a Property or any part thereof if, prior to Closing, written notice of a proposed condemnation or taking is received, a condemnation proceeding is commenced, a condemnation proceeding is concluded, or all or any part of a Property is conveyed in lieu of condemnation (any such taking or condemnation event being a “Condemnation”).  If a Casualty or Condemnation occurs with respect to any Property, Seller will immediately give written notice of such event to Buyer.  Buyer may, at Buyer’s sole option by giving written notice to Seller and Escrow Agent within thirty (30) days after receiving such notice from Seller, terminate this Agreement as to each affected Property and each such terminated Property will be treated as a “Removed Property” as provided in Section 5(c) above (with proportionate reductions in the Purchase Price and Deposit).  If necessary, the Closing Date will be extended to allow Buyer such thirty-day period.  If any Casualty or Condemnation occurs which does not result in a termination of this Agreement as to the affected Property, Seller will, at Closing and as a condition precedent thereto, pay Buyer or credit Buyer against the Purchase Price the amount of any insurance or condemnation proceeds attributable to such event, or assign to Buyer, as of the Closing Date and in a form acceptable to Buyer, all rights or claims to the same, and (if a Casualty) credit to Buyer an amount equal to any deductible or other loss amounts which are not covered under Seller’s insurance policy(ies) applicable to the affected Property.  If all Properties become “Removed Properties” as provided above, then this Agreement will automatically terminate, whereupon the Deposit will immediately be paid by Escrow Agent to Buyer, and neither of the Parties will have any further liability or obligation under this Agreement except for any Surviving Obligations.
18.    SELLER’S REPRESENTATIONS AND WARRANTIES.  
(a)    Seller represents and warrants to Buyer as of the Effective Date and again as of the Closing Date that:
(i)Seller is the fee title owner of the Real Property and has full power and authority to execute, deliver and perform under this Agreement and the Transfer Documents, and no consent of any third party is required for Seller to enter into this Agreement and perform Seller’s obligations hereunder;
(ii)there are no actions or proceedings pending or, to Seller’s knowledge, threatened against Seller which may in any manner whatsoever affect the validity or enforceability of this Agreement or any of the Transfer Documents;
(iii)the execution, delivery and performance of this Agreement and the Transfer Documents have not and will not constitute a breach of or default under any other agreement, law or court order under which Seller is a party or may be bound;
(iv)there are no unrecorded leases (other than the Leases), liens or encumbrances which may affect title to any Property; any existing financing secured by any Property or any part thereof will be satisfied and discharged in full at or prior to Closing and any liens or encumbrances relating thereto will be terminated and released of record at or prior to Closing; and Seller does not have any defeasance, lender approval or prepayment obligations with respect to any existing financing which will delay the Closing;

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(v)to Seller’s knowledge (1) no notice of violation has been issued with regard to any applicable regulation, ordinance, requirement, covenant, condition or restriction relating to the present use or occupancy of any Property by any person, authority or agency having jurisdiction; (2) there is no impending or contemplated Condemnation affecting any Property; (3) there are no intended public improvements which will or could result in any charges being assessed against any Property or which will result in a lien upon any Property; and (4) there are no proceedings pending for the increase of the assessed valuation of any Property;
(vi)there are no suits or claims pending or, to Seller’s knowledge, threatened with respect to or in any manner affecting any Property or any Lease, nor does Seller know of any circumstances which should or could reasonably form the basis for any such suits or claims;
(vii)Seller has not taken any action to change the present use or zoning of or other entitlements or land-use permissions or restrictions upon any Property, and to Seller’s knowledge there are no such proceedings pending;
(viii)except as may be detailed in any environmental documents included in Seller’s Diligence Materials, Seller has no actual knowledge that there exists or has existed, and neither Seller nor its affiliates have caused, any generation, production, location, transportation, storage, treatment, discharge, disposal, release or threatened release upon, under or about any Property of any Hazardous Materials.  “Hazardous Materials” means any flammables, explosives, radioactive materials, hazardous wastes, hazardous and toxic substances or related materials, asbestos or any material containing asbestos (including, without limitation, vinyl asbestos tile), or any other substance or material defined as a “hazardous substance” by any federal, state, or local environmental law, ordinance, rule or regulation including, without limitation, the Federal Comprehensive Environmental Response Compensation and Liability Act of 1980, as amended, the Federal Hazardous Materials Transportation Act, as amended, the Federal Resource Conservation and Recovery Act, as amended, and the rules and regulations adopted and promulgated pursuant to each of the foregoing;
(ix)Seller has not entered into and will not enter into, and there is not existing, any other agreement, written or oral, under which Seller is or could become obligated to sell any Property or any portion thereof to a third party, except for any ROFR contained in a Lease;
(x)no default of Seller exists under any Lease; Seller has sent no written notice of default to Tenant and, to Seller’s knowledge, no default of Tenant exists under any Lease; and Seller has not received any notice or correspondence from Tenant or Tenant’s agents indicating Tenant’s desire, willingness or intent to amend, modify, assign or terminate any Lease nor any notice or correspondence requesting the consent of Seller to any of the foregoing;
(xi)with respect to the Loan Documents:  (i) the Loan Documents forwarded to Buyer under Section 4 are true, correct and complete copies of the Loan Documents; (ii) the Loan Documents are in full force and effect and there are no defaults thereunder; and (iii) Seller has not received any notice or correspondence from Lender of Lender’s agents indicating Lender’s desire, willingness or intent to amend, modify or terminate any Loan Document nor any correspondence requesting the consent of Seller to any of the foregoing;
(xii)all amounts due and payable by Seller under any applicable reciprocal easement agreement or declaration of covenants, conditions and/or restrictions affecting any Property (the “REA’s”) have been paid in full and no default of Seller exists under any of the REA’s 

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and, to Seller’s knowledge after due inquiry, no default of any other party exists under any of the REA’s;
(xiii)all brokerage commissions and other compensation and fees payable by reason of any Lease (including, without limitation, any renewals or expansions) have been fully paid, and no exclusive or continuing leasing or brokerage agreements exist as to any part of any Property;
(xiv)the annual net rent under each Lease in effect as of the Effective Date is as stated on Exhibit A; and Tenant is not entitled to any unpaid improvement allowances, free rent periods or rental abatements, concessions or other inducements; 
(xv)all amounts presently due and payable, and all obligations presently performable, by Seller with respect to each Property have been paid and performed in full and no default of Seller exists with respect to any Property; 
(xvi)Seller has not withheld any information within its possession or of which it is actually aware regarding any Property that would reasonably be considered by an experienced purchaser to be material to that purchaser’s decision to acquire that Property; and
(xvii)if Seller receives notice or knowledge of any additional information regarding any of the matters set forth in this Section 18 prior to Closing, Seller will immediately give written notice to Buyer of the same.
(b)    Further, Seller hereby covenants that unless Buyer otherwise grants Buyer’s prior written consent, which consent may be withheld in Buyer’s sole discretion:
(i)    Seller will pay (or cause to be paid) in full prior to the Closing Date all bills or other charges, costs or expenses arising out of or in connection with or resulting from Seller’s use, ownership, or operation of each Property, including without limitation all general real estate taxes, assessments and personal property taxes due with respect to each Property up to the Closing Date, except for any item to be prorated at Closing in accordance with this Agreement;
(ii)    Seller will not execute or enter into any lease with respect to any Property or any part thereof, or terminate, amend, modify, extend or waive any rights under any Lease;
(iii)    Seller will, or as applicable will cause Tenant to, (1) continue to operate each Property as heretofore operated; (2) maintain each Property in its current condition and perform routine and required maintenance and replacements; (3) pay prior to Closing all sums due for work, materials or services furnished or otherwise incurred in the ownership, use or operation of each Property; (4) comply with all governmental requirements applicable to each Property and with the terms, covenants and conditions of each Lease; (5) except as required by a governmental agency, not place or permit to be placed on any portion of any Property any new improvements of any kind or remove or permit any improvements to be removed from any Property; and (6) not, by voluntary or intentional act or omission, cause or create any easements, encumbrances, or liens to arise or to be imposed upon any Property or to allow any amendment or modification to any existing easements or encumbrances; 

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(iv)    Seller will not provide a copy of, nor disclose any of the terms of, this Agreement to any appraiser, and Seller will instruct any Brokers not to provide a copy of, nor disclose any of the terms of, this Agreement to any appraiser; and
(v)    Seller will request and reasonably cooperate to obtain estoppel certificates, addressed to Buyer, Lender and their successors and assigns, from all other parties to any applicable reciprocal easement agreement, declaration of covenants, conditions and restrictions, or similar agreement relating to any Property.
All representations and warranties made in this Section 18 by Seller shall survive Closing for a period of eighteen (18) months.  Seller will indemnify and hold Buyer harmless from and against any claims, loss, damage, liability and expense, including without limitation reasonable attorneys’ fees and court costs, which Buyer may incur by reason of any misrepresentation by Seller or any breach of any of Seller’s representations and warranties, discovered or arising prior to the expiration of such eighteen (18) month period.  Seller’s indemnity and hold harmless obligations shall survive Closing. 
19.    BUYER’S REPRESENTATIONS AND WARRANTIES.  Buyer represents and warrants to Seller as of the Effective Date and again as of the Closing Date that:
(a)    Buyer has full power and authority to execute, deliver and perform under this Agreement and the Transfer Documents, and no consent of any third party is required for Buyer to enter into this Agreement and perform Buyer’s obligations hereunder;
(b)    there are no actions or proceedings pending or, to Buyer’s knowledge, threatened against Buyer which may in any manner whatsoever affect the validity or enforceability of this Agreement or any of the Transfer Documents; 
(c)    the execution, delivery and performance of this Agreement and the Transfer Documents have not and will not constitute a breach or default under any other agreement, law or court order under which Buyer is a party or may be bound; and 
(d)    if Buyer receives notice or knowledge of any additional information regarding any of the matters set forth in this Section 19 prior to Closing, Buyer will immediately give written notice to Seller of the same.
All representations and warranties made in this Section 19 by Buyer shall survive Closing for a period of eighteen (18) months.  Buyer will indemnify and hold Seller harmless from and against any claims, loss, damage, liability and expense, including without limitation reasonable attorneys’ fees and court costs, which Seller may incur by reason of any misrepresentation by Buyer or any breach of any of Buyer’s representations and warranties, discovered or arising prior to the expiration of such eighteen (18) month period.  Buyer’s indemnity and hold harmless obligations shall survive Closing. 
20.    ASSIGNMENT.  Except as provided below, this Agreement may not be assigned by either Seller or Buyer without the prior written consent of the other Party, which consent will not be unreasonably withheld.  Notwithstanding the foregoing, Buyer may assign its rights under this Agreement, in whole or in part, to any entity or entities affiliated with, controlled by, or under common control with Buyer without seeking or obtaining Seller’s consent, including specifically (but without limitation) as to each Property to a “special purpose entity” formed to take title to such Property.  

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Each such assignee will execute an instrument whereby such assignee assumes the obligations of Buyer under this Agreement with respect to each Property covered by such assignment.  No assignment by Buyer shall release or otherwise relieve Buyer from any obligations hereunder; provided, however, that if Closing occurs the assignor (but not the assignee) shall thereupon be relieved of all the assignor’s obligations arising under this Agreement before, on and after Closing.  
21.    DEFAULT; REMEDIES.
(a)If Seller breaches this Agreement (including without limitation a breach of any representation or warranty of Seller or the failure of Seller to satisfy any condition precedent to Closing that is within Seller’s control) with respect to any Property and such breach is not cured within five (5) days of receiving written notice from Buyer, Buyer may at Buyer’s sole option either: (i) by written notice given to Seller and Escrow Agent terminate this Agreement as to the affected Property(ies), whereupon each such terminated Property will be treated as a “Removed Property” as provided in Section 5(c) above (with proportionate reductions in the Purchase Price and Deposit), and Seller will promptly reimburse Buyer for all reasonable out-of-pocket and third-party expenses (including without limitation reasonable attorneys’ fees and costs) incurred by Buyer in connection with Buyer’s Diligence or this transaction related to each such Removed Property; (ii) by written notice given to Seller and Escrow Agent terminate this Agreement in its entirety, in which event the Deposit will be paid immediately by Escrow Agent to Buyer, Seller will promptly reimburse Buyer for all of Buyer’s reasonable out-of-pocket and third-party expenses (including without limitation reasonable attorneys’ fees) incurred in connection with the Properties, Buyer’s Diligence or this transaction, and neither of the Parties will have any further liability or obligation under this Agreement except for any Surviving Obligations; (iii) extend the date scheduled for Closing for such period of time as Buyer deems reasonably necessary to allow Seller to cure or remedy such breach (but without prejudice to Buyer’s ability to thereafter invoke its other remedies hereunder should Seller fail to timely cure such breach); or (iv) seek specific performance against Seller, in which event the Closing Date will be automatically extended as necessary for Buyer to prosecute such action.  Notwithstanding the foregoing, if specific performance is made unavailable as a remedy to Buyer by Seller’s affirmative acts or intentional omissions, Buyer will be entitled to pursue all rights and remedies available at law or in equity.
(b)If Buyer breaches this Agreement (including without limitation a breach of any representation or warranty of Buyer) and such breach is not cured within five (5) days of receiving written notice from Seller, Seller may, as Seller’s sole and exclusive remedy for such breach, by written notice given to Buyer and Escrow Agent terminate this Agreement and receive the Deposit in accordance with Section 3(b) above as Seller’s agreed and total liquidated damages, it being acknowledged and agreed by the Parties that it would be difficult or impossible to determine Seller’s exact damages, and the Deposit represents a reasonable estimate of those damages.  Upon such termination by Seller, neither of the Parties will have any further liability or obligation under this Agreement except for any Surviving Obligations.  SELLER WAIVES ANY RIGHT TO SEEK ANY OTHER REMEDIES AGAINST BUYER, INCLUDING ANY EQUITABLE OR LEGAL REMEDIES.
(c)The provisions of this Section 21 shall not limit any rights or remedies either Party may have after Closing with respect to those provisions of this Agreement that survive Closing (including for any misrepresentation or breach of warranty) or under the Transfer Documents or any other documents entered into pursuant to this Agreement.  
22.    NOTICES.  All notices under this Agreement must be sent either by (a) email or telecopier, (b) a reputable national overnight courier service, (c) personal delivery, or (d) registered 

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or certified US mail, return receipt requested.  Notices from or signed by the legal counsel for a Party shall be equally effective as a notice from such Party itself.  The addresses to be used for notices are those set forth in the Summary of Terms above, or such other addresses as a Party may from time to time direct by notice given in accordance with these requirements.  If sent by email or telecopier, a notice shall be deemed given when such email or telecopy is transmitted to the notice address or number, and shall be deemed received on that same day.  If personally delivered, a notice shall be deemed given and received upon such delivery.  If sent by overnight courier service, a notice shall be deemed given upon deposit with such courier and deemed received upon actual receipt or refusal of delivery at the notice address.  If sent by registered or certified mail, a notice shall be deemed given and received on the third business day after deposit into the US Mail.
23.    ATTORNEYS’ FEES.  If there is any litigation or arbitration between the Parties to determine or enforce any provisions or rights arising under this Agreement, the unsuccessful Party in such proceeding will pay to the successful Party all costs and expenses incurred by the successful Party in connection therewith, including without limitation reasonable attorneys’ fees and court costs.  The determinations of which Party is the “successful Party” and the amount of such fees, costs and expenses to be awarded to the unsuccessful Party shall be made by the judge or arbitrator in such proceeding.
24.    POST-CLOSING INDEMNITY.  If Closing occurs, thereafter (a) Buyer will indemnify, defend and hold harmless Seller, Seller’s affiliates, and their employees, agents, successors and assigns (collectively, the “Seller Indemnified Parties”), for, from and against any and all demands, claims (including without limitation causes of action in tort), legal or administrative proceedings, losses, liabilities, damages, penalties, fines, liens, judgments, costs or expenses whatsoever (including without limitation reasonable attorneys’ fees and costs), whether direct or indirect, known or unknown, foreseen or unforeseen, relating to any Property (collectively, “Claims”) that are brought by third parties against the Seller Indemnified Parties relating to any actual or alleged events, acts or omissions occurring with respect to any Property from and after Closing or with respect to which the claimed loss, damage or injury occurred from and after Closing; and (b) Seller will indemnify, defend and hold harmless Buyer, Buyer’s affiliates, and their employees, agents, successors and assigns (collectively, the “Buyer Indemnified Parties”) for, from and against any and all Claims that are brought by third parties against the Buyer Indemnified Parties relating to any actual or alleged events, acts or omissions occurring with respect to any Property prior to Closing or with respect to which the claimed loss, damage or injury occurred prior to Closing.  The obligations in this Section shall not apply to any Claims which the Parties have expressly agreed, elsewhere in this Agreement or in the Transfer Documents, will be addressed, handled or allocated in a manner contrary to the foregoing general provisions.  The provisions of this Section shall survive Closing.
25.    INTENTIONALLY DELETED. 
26.    1031 EXCHANGE.  Each Party may structure its purchase or sale, as applicable, as part of a like-kind exchange under Section 1031 of the Tax Code.  Each Party will if requested reasonably cooperate with the other (at no cost or liability to the cooperating Party) in effectuating such a like-kind exchange, including signing such documents as may reasonably and customarily be required to accomplish such exchange; provided, however, that the Closing Date will not thereby be delayed and the cooperating Party will not be required to incur any additional liability or undertake any additional obligations as a result of any such like-kind exchange.  The Party employing the 

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like-kind exchange structure will pay all costs and expenses associated with effectuating such exchange.
27.    MISCELLANEOUS.  This Agreement constitutes a binding agreement between Seller and Buyer for the sale and purchase of the Properties subject to the terms set forth in this Agreement.  Subject to the limitations set forth in this Agreement, this Agreement shall bind and inure to the benefit of the Parties and their respective successors and assigns.  This Agreement constitutes the entire agreement between the Parties pertaining to the sale and purchase of the Properties, and unless expressly stated otherwise all prior and contemporaneous agreements, representations, negotiations and understandings of the Parties regarding this transaction (including without limitation any Letter of Intent), whether oral or written, are superseded and merged herein.  The foregoing sentence shall in no way affect the validity of any instruments subsequently executed by the Parties as contemplated by this Agreement.  No modification, waiver, amendment or discharge of or under this Agreement shall be valid unless contained in a writing signed by the Party against whom enforcement is sought.  If Seller consists of more than one person or entity, the liability of each such person or entity shall be joint and several.  No waiver by Seller or Buyer of a breach of any of the terms, covenants or conditions of this Agreement shall be construed or held to be a waiver of any succeeding or preceding breach of the same or any other term, covenant or condition contained herein.  The headings of this Agreement are for reference only and shall not limit or define the meaning of any provision of this Agreement.  
28.    TIME OF ESSENCE.  Time is of the essence of this Agreement.  When used in this Agreement, the term “business day” means any day which is not a Saturday, Sunday or legal holiday.  If this Agreement specifies that a time period expires or that an action be taken on a date which is not a business day, such date shall be deemed extended to the next succeeding day which is a business day, and any successive time periods shall be deemed extended accordingly.  
29.    SEVERABILITY.  If any one or more of the covenants, agreements, conditions, provisions, or terms of this Agreement is, in any respect or to any extent (in whole or in part), held to be invalid, illegal or unenforceable for any reason, all remaining portions thereof which are not so held, and all other covenants, agreements, conditions, provisions, and terms of this Agreement, will not be affected by such holding, but will remain valid and in force to the fullest extent permitted by law.
30.    SURVIVAL.  To the extent that the performance of any covenant or other obligation of a Party in or pursuant to this Agreement or the Transfer Documents is contemplated to occur or continue after the Closing, the same shall not merge with the transfer of title to any Property, but shall remain in effect until fulfilled (subject to any express limitation thereon set forth in this Agreement).  
31.    APPROVALS; FURTHER ACTS.  The Parties agree that for all matters in this Agreement requiring the consent or approval of any Party, unless otherwise expressly provided in this Agreement any such consent or approval will not be unreasonably withheld, conditioned or delayed.  The Parties agree to promptly execute such other documents and to perform such other acts as may be reasonably necessary to carry out the purpose and intent of this Agreement.
32.    GOVERNING LAW.  This Agreement shall be governed by, and construed and enforced in accordance with, the laws of the applicable state in which the Properties are located.

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33.    COUNTERPARTS; ELECTRONIC DELIVERY.  This Agreement and any related documents may be executed in any number of counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument.  Documents executed by the Parties but delivered by facsimile, “pdf” or other electronic means will be accepted with the same effect as original ink-signed “hard copy” versions (an “Executed Original”) of such documents, provided that (a) if expressly requested by the other Party or Escrow Agent, a Party will promptly also deliver one or more Executed Originals of any such document; (b) all Transfer Documents which are to be recorded must be delivered by the signing Party to Escrow Agent as Executed Originals; and (c) at least one Executed Original of this Agreement must be provided by Seller to Escrow Agent, which Escrow Agent will deliver to Buyer upon the Opening of Escrow. 
34.    INCORPORATION OF EXHIBITS AND SCHEDULES.  All Exhibits and Schedules attached to this Agreement are considered to be a part of this Agreement and are fully incorporated herein by this reference to the same extent as though set forth at length.
35.    OFAC.  Each Party represents and warrants to the other, and to Escrow Agent, that (a) such Party is not knowingly acting, directly or indirectly, for or on behalf of any person, group, entity or nation named by any Executive Order or the United States Treasury Department as a terrorist, “Specially Designated National and Blocked Person,” or other banned or blocked person, entity, or nation pursuant to any law that is enforced or administered by the Office of Foreign Assets Control, or engaging in, instigating or facilitating this transaction for or on behalf of any such person, group, entity or nation; (b) such Party is not engaging in this transaction, directly or indirectly, in violation of any laws relating to drug trafficking, money laundering or predicate crimes to money laundering; and (c) none of the funds of such Party to be utilized in this transaction have been or will be derived from any unlawful activity with the result that such Party or any Property is subject to seizure, forfeiture or other such remedy or that this Agreement or the transactions hereunder are or will be in violation of law.  The provisions of this Section shall survive Closing or any earlier termination of this Agreement.
36.    SEC FILING INFORMATION.  In order to enable Buyer to comply with certain reporting requirements of the Securities and Exchange Commission (the “SEC”), including, without limitation, SEC Rule 3-14 of Regulation S-X, Seller agrees to provide Buyer and its representatives, upon Buyer’s request, information relating to Seller’s ownership and operation of each Property, including without limitation Seller's most current operating statements relating to the financial operation of each Property for the current and immediately prior fiscal years, and support for certain operating revenues and expenses specific to each Property (collectively, the “SEC Filing Information”).  Seller acknowledges that certain of the SEC Filing Information may be included or disclosed in filings required to be made by Buyer with the SEC.  Seller will cooperate in providing the SEC Filing Information and answering questions with respect thereto as they arise.  The provisions of this Section shall survive Closing for a period of one (1) year.

[SIGNATURE PAGE FOLLOWS]

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IN WITNESS WHEREOF, Seller and Buyer have caused this Agreement to be executed by their duly authorized and empowered representatives as of the Effective Date above.

		
	SELLER:
	PENN 1031 LLC

a Michigan limited liability company

By: /s/ Arthur A. Wells
Name (Print): Arthur A. Wells
Title: Authorized Agent

WOOD 1031 LLC
a Michigan limited liability company

By: /s/ Arthur A. Wells
Name (Print): Arthur A. Wells
Title: Authorized Agent

		
	BUYER:
	ARCP ACQUISITIONS, LLC, a Delaware limited liability company

By: /s/ O. Akomea Poku-Kankam
Name (Print): O. Akomea Poku-Kankam
Title: Authorized Officer

ESCROW AGENT’S ACCEPTANCE

The foregoing fully executed Agreement is accepted by the undersigned, as the “Escrow Agent” hereunder, as of the 16th day of July, 2014.  Escrow Agent accepts the engagement to handle the escrow established by this Agreement in accordance with the terms set forth in this Agreement, including without limitation the Escrow Instructions, and acknowledges its receipt of the Deposit.

CHICAGO TITLE INSURANCE COMPANY

By: /s/ Edwin G. Ditlow
Name (Print): Edwin G. Ditlow    
Title: Vice President

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