Document:

CCPT V 03.31.2014 EX. 10.5

Exhibit 10.5

MASTER PURCHASE AGREEMENT
AND ESCROW INSTRUCTIONS

Between

5700 Holdings, LLC and Tipton Holdings, LLC

as Seller

and

SERIES C, LLC

as Buyer

December 19, 2013

MASTER PURCHASE AGREEMENT
AND ESCROW INSTRUCTIONS

		
	DATED:
	Dated to be effective as of December 19, 2013 (the “Effective Date”).

		
	PARTIES:
	This Master Purchase Agreement and Escrow Instructions is between 5700 Holdings, LLC, a Kansas limited liability company, and Tipton Holdings, LLC, a Kansas limited liability company, individually and collectively, as the context may require, as “Seller”, and SERIES C, LLC, an Arizona limited liability company, as “Buyer”.

WHEREAS, as of the Effective Date, Seller is, or as of COE Seller intends to be, the fee title owner of those certain parcels of improved property listed by address on Exhibit A attached hereto, all of which will be legally described on Exhibit A-1 pursuant to Section 9 below (collectively, the “Real Property”);
WHEREAS, as of COE, if COE occurs, each parcel of the Real Property will be improved with a building containing approximately that certain number of square feet set forth on Exhibit A attached hereto (each, a “Building” and, collectively, the “Buildings”).  As of COE, if COE occurs, the Real Property, the Buildings and the improvements to the Real Property (collectively, the “Improvements”) will be leased to Dollar General or its affiliate (“Tenant”) in accordance with a written lease (each, a “Lease” and, collectively, the “Leases”) and guaranteed by Dollar General Corporation.  The Real Property, the Buildings, the Improvements, the personal property, if any, of Seller located on the Real Property and Seller’s interest in each of the Leases and all rents issued and profits due or to become due thereunder are hereinafter collectively referred to as the “Properties” and, individually, as a “Property”; and
WHEREAS, Buyer desires to purchase the Properties from Seller and Seller desires to sell the Properties to Buyer free and clear of all liens, all as more particularly set forth in this Master Purchase Agreement and Escrow Instructions (the “Agreement”).
NOW THEREFORE, in consideration of the promises set forth in this Agreement and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Seller and Buyer (each, a “Party” and, collectively, the “Parties”) hereby agree as follows:
1.    INCORPORATION OF RECITALS.  All of the foregoing Recitals are hereby incorporated as agreements of the Parties.
2.    BINDING AGREEMENT.  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 supersedes all other written or verbal agreements between the Parties concerning any transaction embodied in this Agreement.  No claim of waiver or modification concerning the provision of this Agreement shall be made against a Party unless based upon a written instrument signed by such Party.
3.    INCLUSIONS IN PROPERTIES.  
(a)    The Properties.  The term “Properties” shall also include the following:
(1)    all tenements, hereditaments and appurtenances pertaining to the Real Property;
(2)    all mineral, water and irrigation rights of Seller, if any, running with or otherwise pertaining to the Real Property;
(3)    all interest, if any, of Seller in any road adjoining and appurtenant to the Real Property;

(4)    all interest, if any, of Seller in any award made or to be made or settlement in lieu thereof for damage to the Properties or any portion thereof by reason of condemnation, eminent domain or exercise of police power;
(5)    all of Seller’s interest in the Buildings, the Improvements and any other improvements and fixtures on the Real Property;
(6)    all of Seller’s interest, if any, in any equipment, machinery and personal property located on or used in connection with the Real Property (collectively, the “Personalty”);
(7)    the Leases and all security deposits, if any, now or hereafter due thereunder; and,
(8)    all of Seller’s interest to the extent transferable, in all permits and licenses (the “Permits”), warranties (specifically including, without limitation, the general contractor’s one-year construction warranty with respect to construction of the Building and other Improvements on the Real Property, any other warranty required to be provided by the Lease, and any warranty related to the roof of the Building, collectively, the “Warranties”), contractual rights and intangibles (including rights to the name of the Improvements as well as all construction contracts, subcontracts, architectural/engineering plans and/or agreements and similar agreements) with respect to the design, development, construction, operation, maintenance, repair and/or improvement of the Properties (collectively, the “Contracts”).  
(b)    The Transfer Documents.  The Personalty shall be transferred by that certain bill of sale from Seller to Buyer, the agreed upon form of which is attached hereto as Exhibit B (the “Bill of Sale”); the Lease shall be transferred by that certain assignment and assumption of lease, the agreed upon form of which is attached hereto as Exhibit C (the “Assignment of Lease”); the Permits, Warranties and Contracts shall be transferred by that certain assignment and assumption agreement, the agreed upon form of which is attached hereto as Exhibit D (the “Assignment Agreement”); and the Real Property, the Building and the Improvements shall be transferred and conveyed by execution and delivery of Seller’s special warranty deed, the agreed upon form of which is attached hereto as Exhibit E (the “Deed”).  The Bill of Sale, the Assignment of Lease, the Assignment Agreement and the Deed are hereinafter collectively referred to as the “Transfer Documents”.  Notwithstanding the foregoing, in the event any Warranty transfer requires the approval of the applicable warrantor and/or satisfaction of any other conditions to such transfer, Seller shall obtain such approval and satisfy all such conditions no later than COE (as defined below), including, without limitation, payment of any fees relating thereto.
4.    PURCHASE PRICE.  The aggregate price to be paid by Buyer to Seller for the Properties is EIGHTEEN MILLION FORTY-FIVE THOUSAND ONE HUNDRED SEVENTY-FIVE and NO/100 Dollars ($18,045,175.00) (as may be adjusted below, the “Purchase Price”), which Purchase Price is allocated among the Properties as set forth on Exhibit A attached hereto, and is payable as follows:
(a)    One Hundred Sixty Thousand and No/100 Dollars ($160,000.00) earnest money (said amount, plus all interest earned or accrued thereon, the “Earnest Money Deposit”) to be deposited in escrow with First American Title Insurance Company, 2425 East Camelback Road, Suite 300, Phoenix, Arizona 85016, Attention: Brandon Grajewski (“Escrow Agent”) not later than five (5) business days following the receipt by Escrow Agent of a fully-executed original of this Agreement (said receipt by Escrow Agent of both a fully-executed original of this Agreement and the Earnest Money Deposit, the “Opening of Escrow”), which Earnest Money Deposit is to be held by Escrow Agent until released to Seller or Buyer as provided herein or paid to Seller at close of escrow (“COE”) ($10,000.00 of the Earnest Money Deposit shall be paid to Seller at COE for each Property); and
(b)    Such amounts, in additional cash, or other immediately available funds (as may be increased or decreased by such sums as are required to take into account any additional deposits, prorations, credits, or other adjustments required by this Agreement), set forth in one or more settlement or closing statements prepared by Escrow Agent and approved by Buyer and Seller in connection with COE of each Property purchased by Buyer from Seller pursuant to this Agreement, to be deposited in escrow with Escrow Agent on or before COE as to each such Property, 

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which sum is to be held by Escrow Agent until cancellation of this Agreement as provided herein or paid to Seller at COE.
Notwithstanding anything to the contrary contained in this Agreement, Seller and Buyer acknowledge and agree that (i) the Purchase Price on Exhibit A for each Property has been determined by dividing the initial annual base rent to be paid under the Lease for such Property by the cap rate for such Property set forth on Exhibit A attached hereto (the “Cap Rate”) and, at COE, the final Purchase Price will be determined by dividing the initial annual base rent set forth in the fully executed Lease for such Property by the Cap Rate (subject to further readjustment pursuant to subsection (ii) below), and (ii) if the Tenant is not contractually obligated to pay, and the unconditional payment of full rent by Tenant has not commenced, prior to July 31, 2014, then the Purchase Price for such Property shall be recalculated using a Cap Rate that will increase by two and one half (2.5) basis points on August 31, 2014 and every thirty (30) day period thereafter until Tenant is contractually obligated to pay and the unconditional payment of full rent by Tenant has commenced (and the aggregate Purchase Price shall be adjusted based on the recalculated Purchase Price for such Property).  By way of example, if on November 20, 2014, Tenant first becomes contractually obligated to pay and in fact commences the payment of full rent pursuant to the Lease for the Property in Wisner, Nebraska, the Cap Rate for that Property would be 7.225% and the Purchase Price for that Property would be $919,557.09.  
5.    DISPOSITION OF EARNEST MONEY DEPOSIT.  Seller and Buyer hereby instruct Escrow Agent to place the Earnest Money Deposit in a federally insured interest-bearing passbook account on behalf of Seller and Buyer.  The Earnest Money Deposit shall be applied as follows:
(a)    if Buyer cancels this Agreement in its entirety as Buyer is so entitled to do as provided in this Agreement, the entire Earnest Money Deposit shall be paid immediately to Buyer;
(b)    if Buyer terminates this Agreement with respect to any Property as Buyer is so entitled to do as provided in this Agreement, $10,000.00 of the Earnest Money Deposit shall be paid immediately to Buyer for each terminated Property;
(c)    if the Earnest Money Deposit, or any portion thereof, is forfeited by Buyer pursuant to this Agreement, such Earnest Money Deposit, or portion thereof, shall be paid to Seller as Seller’s agreed and total liquidated damages with respect to the applicable Properties, it being acknowledged and agreed that it would be difficult or impossible to determine Seller’s exact damages; and
(d)    if escrow closes for any Property, $10,000.00 of the Earnest Money Deposit shall be credited to Buyer, automatically applied against the Purchase Price for such Property and paid to Seller at COE.
6.    PRELIMINARY TITLE REPORT; TITLE AND SURVEY OBJECTIONS.
(a)      Within ten (10) days after the Opening of Escrow, Escrow Agent shall deliver a current Preliminary Title Report (together with complete, legible copies of all documents identified as exceptions to title or as title requirements, a “Preliminary Report”) for an ALTA extended coverage title insurance policy (each, an “Owner’s Policy” and, collectively, the “Owner’s Policies”) for each Property to Buyer and Seller.  Each Preliminary Report shall show the status of title to the applicable Property as of the date of such Preliminary Report and shall also describe the requirements of Escrow Agent for the issuance of an Owner’s Policy corresponding to such Property as described herein.  One-half the cost of a standard coverage title policy shall be paid by the Seller; Buyer shall pay the second half of the cost of such standard coverage policy, and any additional costs for an extended coverage policy, endorsements thereto (excluding, however, those endorsements required to cure one or more Objectionable Matters (as hereinafter defined), which endorsements shall be issued at Buyer’s sole cost and expense), or any lender’s title policy shall be paid by Buyer.     
(b)    If Buyer is dissatisfied with any exception to title as shown in any Preliminary Report (collectively, the “Objectionable Matters”), then Buyer may, by giving written notice thereof to Escrow Agent and Seller on or before the later of:  (x) the expiration of the First Study Period (as defined below) for such Property, or (y) ten (10) days after Buyer’s receipt of the Preliminary Report, either (i) terminate this Agreement with respect to 

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any Property or Properties corresponding to such Objectionable Matter(s) (each such Property, a “Removed Property”), or (ii) Buyer may provisionally accept the title to such Property or Properties corresponding to such Objectionable Matters subject to Seller’s agreement to cause the removal of or otherwise cure such Objectionable Matters.  As part of any provisional acceptance of title, Buyer shall be entitled to reserve its right to object to any exception to title shown on a Preliminary Report pending Buyer’s receipt of the Survey (as defined below) showing how such exception affects the corresponding Property.  
If Buyer gives notice to Seller of its election of option (ii) above, Seller shall notify Buyer in writing within ten (10) days after receiving Buyer’s written notice of Objectionable Matters if Seller does not intend to remove (or cause Escrow Agent to endorse over, to Buyer’s satisfaction) or otherwise cure any such Objectionable Matters.  If Seller fails to respond within such 10-day period, Seller shall be deemed to have delivered notice on such 10th day of Seller’s refusal to remove or otherwise cure the Objectionable Matters prior to COE.
(c)    At the outset of the Second Study Period (as defined below) for any Property, Buyer shall order from Escrow Agent an updated Title Report (each, an “Updated Report” and, collectively, the “Updated Reports”) for an Owner’s Policy on such Property.  If Buyer is dissatisfied with any exception to title as shown in any Updated Report and/or any matter disclosed by any Survey (excluding any matters disclosed by the Preliminary Report for such Property to which Buyer did not previously object within the time allowed in Section 6(b)) (collectively, the “Objectionable Matters”), then Buyer may, by giving written notice thereof to Escrow Agent and Seller on or before the later of:  (x) the expiration of the Second Study Period for such Property or (y) ten (10) days after the expiration of the Survey Period for such Property, either (i) terminate this Agreement with respect to any Property or Properties corresponding to such Objectionable Matter(s) (each such Property, a “Removed Property”), or (ii) Buyer may provisionally accept the title to such Property or Properties corresponding to such Objectionable Matters subject to Seller’s agreement to cause the removal of or otherwise cure such Objectionable Matters. 
If Buyer gives notice to Seller of its election of option (ii) above, Seller shall notify Buyer in writing within ten (10) days after receiving Buyer’s written notice of Objectionable Matters if Seller does not intend to remove (or cause Escrow Agent to endorse over, to Buyer’s satisfaction) or otherwise cure any such Objectionable Matters.  If Seller fails to respond within such 10-day period, Seller shall be deemed to have delivered notice on such 10th day of Seller’s refusal to remove or otherwise cure the Objectionable Matters prior to COE. 
(d)    In the event any Preliminary or Updated Report is later amended (each such amended Preliminary or Updated Report, an “Amended Report”) to include new exceptions that are not set forth in the prior Preliminary or Updated Report corresponding to the same Property, or in the event any Survey is amended (each such Survey, an “Amended Survey”) to include or depict matters that are not set forth in the prior Survey corresponding to the same Property, Buyer shall have until the later of (i) the expiration of the First or Second Study Period, as applicable, for such Property, (ii) the date seven (7) days after Buyer’s receipt of both such Amended Report and copies of the documents identified in the new exceptions or new requirements, or (iii) the date seven (7) days after Buyer’s receipt of the Amended Survey, as applicable, within which to either (Y) terminate this Agreement with respect to any Property corresponding to such Amended Report or Amended Survey as set forth in Sections 6(b) or 6(c) above, whereupon any such Property shall be deemed to be a Removed Property, or (Z) to provisionally accept the title to such Property or Properties corresponding to such Amended Report or Amended Survey subject to Seller’s agreement to cause the removal of any Objectionable Matter(s) identified by Buyer in a written notice to Seller.  
(e)    In the event Buyer provisionally accepts title to a Property subject to Seller’s agreement to cure one or more Objectionable Matters pursuant to Sections 6(b), 6(c) and/or 6(d) above, and if Seller serves notice (or is deemed to have served notice) to Buyer that Seller does not intend to remove or otherwise cure such Objectionable Matters before COE, Buyer shall, within ten (10) days after receipt of such notice (or deemed notice) from Seller, notify Seller and Escrow Agent in writing of Buyer’s election to either (i) terminate this Agreement with respect to the Property corresponding to such Objectionable Matter(s) as set forth in Sections 6(b), 6(c) and/or 6(d) above, as applicable, whereupon such Property shall be deemed to be a Removed Property, or (ii) waive such Objectionable Matter(s).  If written notice of either satisfaction or dissatisfaction as to any Preliminary Report, Updated Report, Survey, Amended Report or Amended Survey is not timely given by Buyer to Seller pursuant to this Section 6, then Buyer shall be deemed to have disapproved of the condition of the title of the Property or Properties corresponding to 

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each such Preliminary Report, Updated Report, Survey Amended Report, or Updated Survey and shall have elected to terminate this Agreement with respect to each Property corresponding to each such Preliminary Report, Updated Report, Survey Amended Report, or Amended Survey as set forth in Sections 6(b), 6(c) and/or 6(d) above, as applicable, whereupon any such Property shall be deemed to be a Removed Property.  In the event Buyer provides written notice of objections to some matters disclosed by the Preliminary Report, Updated Report, Survey, Survey Amended Report and/or Updated Survey but does not in such notice object to other matters disclosed therein, Buyer shall be deemed to have approved any such other matters disclosed therein and not included as an Objectionable Matter in such notice.
(f)    The aggregate Purchase Price shall be reduced by the Purchase Price corresponding to each Removed Property, and the portion of the Earnest Money Deposit corresponding to such Removed Property (i.e., $10,000.00) plus all interest earned thereon shall be returned immediately to Buyer.  In the event that all Properties are removed from this Agreement pursuant to Sections 6(b), 6(c), 6(d) and/or 6(e) hereof, this Agreement shall automatically terminate in its entirety, whereupon the Earnest Money Deposit shall be paid immediately to Buyer, all documents deposited in escrow by Buyer shall be returned to Buyer without delay and all documents deposited in escrow by Seller shall be returned to Seller without delay.
7.    BUYER’S STUDY PERIOD.
(a)    The First Study Period.  As to any particular Property, Buyer shall have until 11:59 p.m. MST on thirtieth (30th) day after the later of (i) the Effective Date, (ii) Seller’s delivery of written notice to Buyer of Seller’s acquisition of the Property, together with reasonable evidence thereof, or (iii) Buyer’s receipt of all deliveries of Seller’s Diligence Materials (as hereinafter defined) and the fully executed Lease (together with any exhibits, guaranties, amendments and modifications thereto, and assignments thereof, all fully executed) for such Property (the “First Study Period”), at Buyer’s sole cost, within which to conduct and approve any investigations, studies or tests deemed necessary by Buyer, in Buyer’s sole discretion, to determine the feasibility of acquiring such Property, including, without limitation, Buyer’s right to: (i) review and approve the Lease corresponding to such Property, the Seller’s Diligence Materials, Seller’s operating statements and the Contracts with respect to such Property; (ii) meet and confer with Tenant (but only after written notice to Seller, and provided that Seller shall have the right to participate in any such conferences); and (iii) obtain, review and approve an environmental study of each Property. 
(b)    The Second Study Period. In addition to the foregoing, Seller acknowledges that Buyer will not order a property condition report, a Survey, an appraisal, an environmental site assessment, zoning report and an Updated Report for any Property (collectively, the “Post-Construction Reports”) until after Seller provides written notice to Buyer that construction of such Property has been substantially completed, except for so-called “punch list” items which do not, either individually or in the aggregate, interfere with Tenant’s use and occupancy of the Property or prevent Tenant from obtaining a building permit, a Certificate of Occupancy or any other government approval, which substantial completion shall be further evidenced by (i) the issuance, and Buyer’s receipt, of a Certificate of Occupancy (which may be a temporary Certificate of Occupancy) for such Property, if available in such jurisdiction and, if not available, the jurisdictional equivalent of the Certificate of Occupancy, if any, and (ii) delivery of the applicable Property to Tenant for the installation by Tenant of its fixtures pursuant to the Evidence of Completion (as defined in the Lease) (together with the Certificate of Occupancy, if available, or its equivalent, if any, and the Evidence of Completion to Tenant, such notice is referred to as the “Substantial Completion Notice”).  As to any particular Property, Buyer shall have until 11:59 p.m. MST on the later of (i) the thirtieth (30th) day after Buyer’s receipt of the Substantial Completion Notice for such Property, or (ii) the tenth (10th) day after the earlier of: (A) Buyer’s receipt of the Survey for such Property, or (B) the expiration of the Survey Period for such Property (the “Second Study Period”), at Buyer’s sole cost, within which to conduct and approve the Post-Construction Reports for such Property.  The investigations, studies or tests conducted by Buyer pursuant to Section 7(a) or this Section 7(b) are hereinafter referred to as “Buyer’s Diligence”.  
(c)    Right of Entry.  Subject to the prior rights of Tenant in the Properties, Seller hereby grants to Buyer and Buyer’s agents, employees and contractors the right to enter upon each Property, at any time or times prior to COE, to conduct Buyer’s Diligence.  Notwithstanding the foregoing, in conducting any Buyer’s Diligence, Buyer shall provide Seller with prior written notice of any inspections, tests or studies that Buyer desires to conduct on any Property, Buyer shall not unreasonably interfere with any Tenant’s use of any Property nor any construction being 

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conducted on any Property, Buyer shall provide Seller with proof of adequate commercial liability insurance in amount and form reasonably acceptable to Seller, and Seller may be present during any such inspections, tests or studies.  In consideration therefor, Buyer shall and does hereby agree to indemnify and hold Seller harmless from and against any and all claims for expenses, costs, losses, liabilities and/or damages asserted against Seller, including, but not limited to, court costs and attorneys’ fees, which may be incurred by Seller as a direct result of Buyer’s Diligence.  Buyer’s indemnity and hold harmless obligation shall survive cancellation of this Agreement or COE.
(d)    First Study Period Cancellation.  As to any particular Property, unless Buyer so notifies Seller or Escrow Agent, in writing, on or before the end of the First Study Period for such Property, of Buyer’s acceptance of such Property and unconditional waiver of the contingencies as set forth in Section 7(a) with respect to such Property, this Agreement shall terminate with respect to such Property (each such Property, a “Removed Property”), the aggregate Purchase Price shall be reduced by the Purchase Price corresponding to each such Removed Property, the portion of the Earnest Money Deposit corresponding to such Removed Property (i.e., $10,000.00) plus all interest earned thereon shall be returned immediately to Buyer, and this Agreement shall continue in full force and effect with respect to the remaining Properties. 
(e)    Second Study Period Cancellation.    As to any particular Property, unless Buyer so notifies Seller or Escrow Agent, in writing, on or before the end of the Second Study Period for such Property, of Buyer’s acceptance of the Post-Construction Reports or Updated Reports for such Property and unconditional waiver of the contingencies as set forth in Section 7(b) with respect to such Property, this Agreement shall terminate with respect to such Property and any such Property shall be deemed to be a Removed Property, the aggregate Purchase Price shall be reduced by the Purchase Price corresponding to each such Removed Property, the portion of the Earnest Money Deposit corresponding to such Removed Property (i.e., $10,000.00) plus all interest earned thereon shall be returned immediately to Buyer, and this Agreement shall continue in full force and effect with respect to the remaining Properties.  With respect to any Property for which this Agreement has not been terminated within the time periods specified pursuant to Section 7(d) or 7(e), the Earnest Money Deposit corresponding to such Property (i.e., $10,000) shall become non-refundable to Buyer and shall be forfeited to Seller in the event Buyer shall fail to close on the purchase of such Property, except as expressly provided in Sections 6(d), 7(f), 12, 19 and 20.
(f)    Property Acquisition and Development.  As of the Opening of Escrow, Seller is not the owner of all of the Properties and/or some of the Properties have not yet been improved with the Buildings or leased to Tenant pursuant to a Lease.  Seller intends to complete the acquisition of the Properties and the construction of the Buildings, and lease the Improvements to Tenant on or before COE and covenants to use commercially reasonable efforts to do so.  If, as of May 31, 2014, Seller hasn’t completed the acquisition of a Property, or as of August 31, 2014, Seller hasn’t completed the construction of the Buildings or leased the Improvements to Tenant with respect to a Property, in each case despite its commercially reasonable efforts to do so, then Seller or Buyer shall have the right, without limiting any other rights or remedies it may have, to terminate this Agreement with respect to such Property upon written notice to the other party and Escrow Agent.  In the event this Agreement is terminated with respect to a Property pursuant to this subsection (f), the aggregate Purchase Price (as defined below) shall be reduced by the Purchase Price corresponding to such Property, the portion of the Earnest Money Deposit corresponding to such Property (i.e., $10,000.00) plus all interest earned thereon shall be returned immediately to Buyer, Seller shall promptly reimburse to Buyer its reasonable out-of-pocket and third-party property diligence expenses incurred with respect to such Property not to exceed $10,000.00, and neither Seller nor Buyer will have any further obligation or responsibility to the other to perform under the Agreement with respect to such Property.
8.    DELIVERY OF SELLER’S DILIGENCE MATERIALS.  Within three (3) days after the Opening of Escrow, Seller agrees to deliver to Buyer copies of all documents currently in Seller’s possession relating to the leasing, operating, maintenance, construction (including the Certificate of Occupancy for such Property if one exists at such time), repair, zoning (including any zoning verification letters), platting, engineering, soil tests, water tests, environmental tests, market studies, master planning, architectural drawings and like matters regarding such Property and/or the Tenant (collectively, “Seller’s Diligence Materials”), all at no cost to Buyer.  The foregoing deliveries shall include, but not be limited to, copies of all of the following documents to the extent currently in the Seller’s possession:  (i) books of account and records for such Property for the last twenty-four (24) months (including year-end Tenant CAM expense reconciliations); (ii) the Lease corresponding to such Property, including all amendments thereto, 

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guaranties thereof and assignments thereof and, if applicable, a copy of the leasehold title insurance policy delivered to Tenant with respect to such Property; (iii) a detailed listing of all capital expenditures on such Property for the last thirty-six (36) months; (iv) the maintenance history of such Property for the last twenty-four (24) months; (v) current maintenance, management, and listing contracts for such Property including any amendments thereto; (vi) all claims or suits by Tenant or third-parties involving such Property or any of the Leases or any Contracts relating to such Property (whether or not covered by insurance); (vii) a list of all claims or suits by or against Seller regarding such Property for the last thirty-six (36) months; (viii) any appraisals of such Property or any part thereof; (ix) the site plan with respect to such Property; (x) copies of all Contracts, Warranties and Permits relating to such Property, including copies of all warranties required under the Leases; (xi) Tenant’s written approval of any declaration, easement or similar agreement that requires or required Tenant’s consent pursuant to the terms and conditions of the Lease; and (xii) any other documents currently in the possession of Seller pertaining to such Property.  Should Seller receive new or updated documents regarding any of the matters set forth in this Section 8(a) after the date hereof and prior to COE, Seller will immediately notify Buyer of such fact and will promptly deliver complete copies thereof to Buyer.  
9.    THE SURVEYS.  Within thirty (30) days after receipt of the Substantial Completion Notice for any Property (the “Survey Period”), Buyer shall cause, at Buyer’s sole costs and expense, one or more national surveyors licensed in the State(s) in which the applicable Property is located to complete and deliver to Escrow Agent, Buyer and Seller a current, certified ALTA survey of the Real Property, Building and Improvements comprising such Property certified to Buyer, Seller, Tenant and Escrow Agent (each, a “Survey” and, collectively, the “Surveys”), whereupon the legal descriptions in the Surveys, if confirmed by Buyer, Seller and Escrow Agent to be accurate, shall be inserted as the descriptions in Exhibit A-1 attached hereto.  Each Survey shall set forth the legal description and boundaries of the applicable parcel of Real Property and all easements, encroachments and improvements thereon.
10.    IRS SECTION 1445.  Seller shall furnish to Buyer in escrow by COE a sworn affidavit (the “Non-Foreign Affidavit”) stating under penalty of perjury that Seller is not a “foreign person” as such term is defined in Section 1445(f)(3) 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 an amount equal to the amount required to be so withheld pursuant to Section 1445(a) of the Tax Code, and such withheld funds shall 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.
11.    DELIVERY OF POSSESSION.  Seller shall deliver possession of each Property to Buyer at COE subject only to the rights of Tenant under each of the Leases as approved by Buyer as part of Buyer’s Diligence and any other matters approved or deemed approved by Buyer pursuant to Section 6 of this Agreement (the “Permitted Exceptions”).
12.    BUYER’S CONDITIONS PRECEDENT.  In addition to all other conditions precedent set forth in this Agreement, Buyer’s obligations to perform under this Agreement and to close escrow with respect to any Property are expressly subject to satisfaction of the following conditions on or before COE (or such earlier date that is specified below):
(a)    the delivery by Seller to Escrow Agent, for delivery to Buyer at COE, of the executed original Transfer Documents for such Property;
(b)    the issuance of the Owner’s Policy (or a written commitment therefor) for such Property subject only to the Leases and Permitted Exceptions;
(c)    the delivery by Seller to Buyer at COE of all security deposits and pre-paid rents under the Lease for such Property, if any, in the form of a credit in favor of Buyer against the Purchase Price allocated to such Property;
(d)    the deposit by Seller with Buyer not later than five (5) days prior to COE of  (i) as to the Lease for such Property, an original estoppel certificate (“Tenant Estoppel”), in a form reasonably acceptable to Buyer (or 

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in the form required by the Lease, if so required in the Lease) (v) dated not more than thirty (30) days prior to COE (provided that if Buyer extends COE with respect to any Property as provided in Section 17, Seller shall not be required to obtain an updated Tenant Estoppel for such Property), (w) executed by Tenant and naming Buyer (or its designee) and any lender of which Buyer provides written notice to Seller pursuant to the notice provisions hereof (“Lender”) as addressees, (x) verifying the basic facts of such Lease (term, rental, expiration date, options, if any exist), (y) confirming that, to Tenant’s actual knowledge, there are no defaults by the landlord under such Lease, no unperformed or “punchlist” construction items, no unpaid tenant improvement allowances or leasing commissions and that no percentage rents or impounds are paid pursuant to such Lease (or specifying the amount(s) thereof), and (z) if Tenant’s obligations under such Lease have been guaranteed by another person or entity, also cover such guaranty and also be signed by such guarantor(s), and (ii) as to the Lease for such Property, a subordination, non-disturbance and attornment agreement executed by Tenant, in form and substance reasonably acceptable to Tenant, for the benefit of Lender (“SNDA”); provided, however, that Seller’s failure to obtain and provide to Buyer a Tenant Estoppel or SNDA despite its good faith and diligent efforts with respect to any Property shall not be an event of default hereunder, but merely a condition to Buyer’s obligation to close; 
(e)    the deposit with Escrow Agent and Buyer prior to the expiration of the First Study Period for any Property of an executed waiver by Tenant of any right of first refusal under the Lease for such Property;
(f)    the deposit with Escrow Agent of an executed final lien waiver by the general contractor, an executed affidavit of Seller, and such other documentation as may be reasonably required by Escrow Agent to allow for the deletion of the mechanics’ lien exception from the Owner’s Policy for such Property, which other documentation may include an affidavit executed by Seller’s principals or parent entity if Seller is a single asset entity all in a commercially reasonable form;
(g)    the delivery by Seller to Buyer of the final Certificate of Occupancy for such Property, if available in such jurisdiction, or, if not available, the jurisdictional equivalent of a Certificate of Occupancy, if any, or certification from Seller that no such documentation is issued by the applicable jurisdiction;
(h)     the delivery by Seller to Buyer of the leasehold title insurance policy provided to Tenant for such Property (if required by the Lease for such Property);
        
(i)    the deposit with Escrow Agent of a letter from Seller to Tenant requesting that future rent under the Lease for such Property be paid to Buyer; 
(j)    there has been no “Insolvency Event” with respect to any Tenant.  As used in this subsection (l), an “Insolvency Event” shall have occurred if any Tenant becomes insolvent within the meaning of the United States Bankruptcy Code, 11 U.S.C. Sec. 101 et seq., as amended (the “Bankruptcy Code”), files or notifies Seller or any affiliate of Seller that it intends to file a petition under the Bankruptcy Code, initiates a proceeding under any similar law or statute relating to bankruptcy, insolvency, reorganization, winding up or adjustment of debts (collectively, hereinafter, an “Action”), becomes the subject of either a petition under the Bankruptcy Code or an Action, or is not generally paying its debts as the same become due;
(k)    delivery of the SEC Filing Information (as hereinafter defined) by Seller to Buyer not less than five (5) days prior to COE;
(l)    Tenant has accepted possession of such Property and is contractually obligated to pay, and has commenced payment of, full rent pursuant to the Lease for such Property;

(m)    the delivery by Seller to Buyer of either (i) a three year latent defect warranty for Buyer’s benefit from either general contractor that constructed the Improvements or another entity reasonably acceptable to Buyer or (ii) an indemnity agreement in a form reasonably acceptable to Buyer executed by an entity reasonably acceptable Buyer indemnifying Buyer for any Claims (as defined below) that may arise on account of or in any way connected to the three year latent defect warranty described in the Leases;

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(n)    delivery to Buyer of the original, fully-executed Lease and guaranty executed by Dollar General Corporation with respect to such Property, and a copy of all exhibits, amendments and other modifications thereto, 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
(o)    delivery to Buyer of all originals in Seller’s possession and, if not in Seller’s possession, copies of all of the Contracts, Warranties and Permits for such Property including, without limitation, any warranties covering the roof or any other part of the Improvements and any warranties required under the Lease, and any correspondence with respect thereto. 
If the foregoing conditions have not been satisfied as to any Property by the specified date or COE as the case may be, then Buyer shall have the right, at Buyer’s sole option, by giving written notice to Seller and Escrow Agent on or before COE (or within 10 days following the specified date, if such date is other than COE), to (i) cancel this Agreement as it relates to such Property, whereupon the aggregate Purchase Price shall be reduced by the Purchase Price corresponding to each such Property, the portion of the Earnest Money Deposit corresponding to such Removed Property (i.e., $10,000.00) plus all interest earned thereon shall be returned immediately to Buyer, and this Agreement shall continue in full force and effect as to all remaining Properties, (ii) waive such non-satisfaction and proceed to closing on such Property without any adjustment to the Purchase Price for such Property, or (iii) terminate this Agreement in its entirety.  In the event Buyer fails to timely provide the notice set forth above, Buyer shall be deemed to have elected to proceed under subparagraph (i) above.  In the event this Agreement is terminated in its entirety, the Earnest Money Deposit shall be paid immediately by Escrow Agent to Buyer and, except as otherwise provided in this Agreement, neither of the Parties shall have any further liability or obligation under this Agreement.  
13.    SELLER’S REPRESENTATIONS WARRANTIES AND COVENANTS.  

(a)    Seller hereby represents and warrants to Buyer with respect to each Property as of COE for such Property that:
(i)    except as disclosed in any title reports obtained pursuant to this Agreement and any Surveys, there are no unrecorded leases (other than the Leases), liens or encumbrances which may affect title to any Property; any liens or encumbrances relating to any existing financing secured by any Property or any part thereof shall be terminated and released of record at or prior to COE; and Seller does not have any defeasance, lender approval or prepayment obligations with respect to any existing financing which will delay COE;
(ii)    to Seller’s knowledge, 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;
(iii)    except as disclosed in any title reports obtained pursuant to this Agreement and any Surveys, to Seller’s knowledge, there are no intended public improvements which will or could result in any charges being assessed against any Property which will result in a lien upon any Property;
(iv)    to Seller’s knowledge, there is no impending or contemplated condemnation or taking by inverse condemnation of any Property, or any portion thereof, by any governmental authorities;
(v)    except as conspicuously and explicitly disclosed in any Seller Diligence Materials, there are no suits or claims pending or to Seller’s knowledge, threatened with respect to or in any manner affecting any Property or Seller, nor does Seller know of any circumstances which should or could reasonably form the basis for any such suits or claims which have not been disclosed in writing to Buyer by Seller;
(vi)    Seller has not entered 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;
(vii)    Seller has not taken any action before any governmental authority having jurisdiction thereover, the object of which would be to change the present zoning of or other land-use limitations, upon any Property, 

9

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;
(viii)    this transaction will not in any way violate any other agreements to which Seller is a party;
(ix)    Seller has full power and authority to execute, deliver and perform under this Agreement as well as under the Transfer Documents, the agreed upon form of which are attached hereto as Exhibits;
(x)    no default of Seller exists under any Lease; Seller has sent no notice of default to any Tenant, and to Seller’s knowledge, no default of any Tenant exists under any Lease; Seller has not received any notice or correspondence from any Tenant or such Tenant’s agents indicating such Tenant’s desire, willingness or intent to amend, modify, assign or terminate such Tenant’s Lease nor any notice or correspondence requesting the consent of Seller to any of the foregoing;
(xi)    the initial annual rent under each Lease is as set forth on Exhibit A attached hereto; Tenant is not entitled to any free rent periods or rental abatements, concessions or other inducements under any Lease for any period subsequent to COE except as set forth on Exhibit H attached hereto;
(xii)    to the extent Seller is the original landlord under any Lease, such Lease was negotiated in an arms-length transaction;
(xiii)    Tenant does not have: (a) any option or preferential right to purchase any of the Properties or portion of any of the Properties, (b) any right of first refusal or right of first offer with respect to any of the Properties, or (c) any right, title or interest with respect to the Property other than as lessee under its applicable lease;
(xiv)    all amounts due and payable by Seller under the Contracts and the REA’s have been paid in full and no default of Seller exists under any of the Contracts or any of the REA’s and, to Seller’s knowledge, no default of any other party exists under any of the Contracts or any of the REA’s;
(xv)    no consent of any third party is required in order for Seller to enter into this Agreement and perform Seller’s obligations hereunder;
(xvi)    except as set forth in Seller’s Diligence Materials, Seller has no actual knowledge that there exists or has existed, and Seller itself has not 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” shall mean 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;
(xvii)    except as set forth in Seller’s Diligence Materials, to Seller’s actual knowledge, there is not now, nor has there ever been, on or in any Property or any portion thereof underground storage tanks, any asbestos-containing materials or any polychlorinated biphenyls, including those used in hydraulic oils, electric transformers, or other equipment; and
(xviii)    the execution, delivery and performance of this Agreement and the Transfer Documents, the agreed upon form of which are attached hereto as Exhibits, have not and will not constitute a breach or default under any other agreement, law or court order under which Seller is a party or may be bound;

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 (b)    Further, Seller hereby covenants to Buyer as of the Effective Date that:

(i)    Seller will not enter into nor execute any agreement, written or oral, under which Seller is or could become obli-gated to sell the Properties, or any portion thereof, to a third party, without Buyer’s prior written consent;

(ii)    Except as necessary to complete the Improvements in accordance with the Leases, Seller will not, without the prior written consent of Buyer, take any action before any gov-ernmental authority having jurisdiction thereover, the object of which would be to change the present zoning of or other land‐use limitations, upon any Property, or any portion thereof, or the potential use of any Property;

(iii)    except for any item to be prorated at COE in accordance with this Agreement, 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 the Properties up to COE shall be paid in full by Seller;
(iv)    all general real estate taxes, assessments and personal property taxes that have become due with respect to the Properties (except for those that will be prorated at COE) have been paid or will be so paid by Seller prior to COE;

(v)    between the Effective Date and the applicable COE for a Property or any earlier termination of this Agreement, Seller shall not (i) execute or enter into any lease with respect to such Property (other than the Lease contemplated by the terms, and further described on Exhibit A, hereof), (ii) terminate any Lease previously entered into, or (iii) amend, modify, extend or waive any rights under any Lease if such amendment, modification, extension or waiver would have material economic impact on the terms of the Lease, or (iv) between the date that is ten (10) business days prior to the expiration of the Second Study Period and the applicable COE for a Property, terminate, amend, modify, extend or waive any rights under any of the Leases without Buyer’s prior written consent, which consent may be withheld at Buyer’s discretion;

(vi)    between the Effective Date and the applicable COE for a Property or any earlier termination of this Agreement, Seller shall, at its sole cost:
(1)    continue to operate such Property as heretofore operated by Seller subject to Buyer’s rights under this Agreement to direct specific activities of Seller;

(2)    maintain or cause Tenant to maintain such Property as required by the Lease;

(3)    pay or cause Tenant to pay (as applicable) prior to COE, all sums due for work, materials or services furnished or otherwise incurred in the ownership, use or operation of such Property up to COE;

(4)    comply or cause Tenant to comply with all governmental requirements applicable to such Property;

(5)    except as required by a governmental agency or as necessary to complete the Improvements in accordance with the Lease, not remove or permit any improvements to be removed from such Property without the prior written consent of Buyer;

(6)    except as necessary to complete the Improvements in accordance with the Lease, not restrict, rezone, file or modify any development plan or zoning plan or establish or voluntarily participate in the establishment of any improvement district with respect to all or any portion of any Property without Buyer’s prior written consent; 

(7)    except as necessary to complete the Improvements in accordance with the Lease or as may be required by the Tenant, without Buyer’s prior written consent, Seller shall not, by voluntary or 

11

intentional act or omission to act, further cause or create any easement, encumbrance, or mechanic’s or materialmen’s liens, and/or similar liens or encumbrances to arise or to be imposed upon any Property or any portion thereof that affects title thereto, or to allow any amendment or modification to any existing easements or encumbrances; and

(8)    cause Tenant to comply in all respects with the terms, covenants and conditions of the Lease relating to such Property;

(vii)    Seller shall and hereby does assign to Buyer effective as of COE for each Property, to all claims, counterclaims, defenses, or actions, whether at common law, or pursuant to any other applicable federal or state or other laws which Seller may have against any third parties relating to the existence of any Hazardous Materials in, at, on, under or about such Property (including Hazardous Materials released on such Property prior to COE and continuing in existence on such Property at COE) and Seller shall reasonably cooperate with Buyer in connection with any of the foregoing; provided, however, that the foregoing assignment shall not prevent or prohibit Seller from asserting any defenses, including affirmative defenses and third-party actions, with respect to any action or claim made against Seller;

(viii)    Seller shall not, without the prior written consent of Buyer, provide a copy of, nor disclose any of the terms of, this Agreement to any appraiser; and

(ix)    should Seller receive actual notice of any information regarding any of the matters set forth in this Section 13 after the Effective Date and prior to COE, Seller will immediately notify Buyer of the same in writing.

All representations, warranties and covenants made in this Agreement by Seller shall survive the execution and delivery of this Agreement and each COE for a period of one year.  Seller shall and does hereby indemnify against and hold Buyer harmless from any loss, damage, liability and expense, together with all court costs and attorneys’ fees which Buyer may incur, (“Damages”) by reason of any misrepresentation by Seller or any breach of any of Seller’s warranties or covenants.  Seller’s indemnity and hold harmless obligations shall survive each COE for a period of one year.  Notwithstanding anything to the contrary contained herein, Seller’s liability with respect to Seller’s representations, warranties and covenants and Seller’s indemnity and hold harmless obligations set forth herein shall not exceed One Hundred Sixty Thousand Dollars ($160,000).  For purposes of this Agreement, the term “Seller’s knowledge” or words of similar import means the actual knowledge of Tyler S. Oliver, without duty of inquiry or investigation, with respect to all of the Properties.  Seller represents and warrants that Tyler S. Oliver is the person within Seller’s organization having the most comprehensive knowledge of the matters set forth in this Section 13 with respect to the applicable Properties.  Except as expressly set forth in this Agreement and any documents delivered by Seller at COE, Seller is selling and Buyer is buying the Properties “AS-IS” and without representation or warranty of any kind.  
14.    BUYER’S REPRESENTATIONS WARRANTIES AND COVENANTS.  

(a)    Buyer hereby represents and warrants to Seller as of the Effective Date and again as of each COE that:

(i)    Buyer has full power and authority to execute, deliver and perform under this Agreement as well as under the Transfer Documents, the agreed upon forms of which are attached hereto as Exhibits;

(ii)    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 documents, the agreed upon forms of which are attached hereto as Exhibits; and

(iii)    the execution, delivery and performance of this Agreement and the Transfer Documents, the agreed upon forms of which are attached hereto as Exhibits, 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.

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(b)    Further, Buyer hereby covenants to Seller as of the Effective Date that:

(i)    should Buyer receive notice or knowledge of any information regarding any of the matters set forth in this Section 14 after the Effective Date and prior to COE, Buyer will promptly notify Seller of the same in writing.

All representations, warranties and covenants made in this Agreement by Buyer shall survive the execution and delivery of this Agreement and each COE.  Buyer shall and does hereby indemnify against and hold Seller harmless from any loss, damage, liability and expense, together with all court costs and attorneys’ fees, if awarded by a court of law, which Seller may incur, by reason of any misrepresentation by Buyer or any breach of any of Buyer’s warranties or covenants.  Buyer’s indemnity and hold harmless obligations shall survive each COE.
15.    RENTS AND DEPOSITS.  Seller and Buyer agree that, in addition to all other conditions and covenants contained herein, Seller shall deliver to Buyer and Escrow Agent not later than the day immediately prior to COE information for such Property, certified by Seller to be true and accurate as of the date thereof and as of the date of COE for such Property, with respect to (i) the amount of Tenant’s security deposit under the Leases, if any, and (ii) prepaid and/or abated rents, including, without limitation, the amount thereof and the date to which such rents have been paid.
16.    BROKER’S COMMISSION.  Concerning any brokerage commission, the Parties agree as follows:
(a)    the Parties warrant to one another that they have not dealt with any finder, broker or realtor in connection with this Agreement;
(b)    if any person shall assert a claim to a finder’s fee or brokerage commission on account of alleged employment as a finder or broker in connection with this Agreement, the Party under whom the finder or broker is claiming shall indemnify and hold the other Party harmless from and against any such claim and all costs, expenses and liabilities incurred in connection with such claim or any action or proceeding brought on such claim, including, but not limited to, counsel and witness fees and court costs in defending against such claim.  The provisions of this subsection shall survive cancellation of this Agreement or COE; and
(c)    the principals of Seller are licensed real estate agents.
17.    CLOSE OF ESCROW.  COE as to any Property shall be on or before 5:00 p.m. MST on the fifteenth (15th) day after the later of: (i) the commencement of the payment of full unabated rent under the Lease for such Property, (ii) the expiration of the Second Study Period for such Property, and (iii) the date on which the events set forth under the immediately preceding subsections (i) and (ii) have occurred for at least four (4) other Properties for which COE has not previously occurred (the intent being that COE shall occur with respect to no less than five (5) Properties at a time unless the COE in question is the last COE to occur and less than five (5) Properties are remaining) or such earlier date as Buyer may choose by giving ten (10) days written notice thereof to Seller and Escrow Agent (such date, as to each Property, the “Closing Date”).  Buyer may extend the Closing Date as to any Property(ies) for up to an additional fifteen (15) days upon delivery of written notice to extend the Closing Date to Escrow Agent prior to the original Closing Date corresponding to such Property and by depositing an additional Ten Thousand and no/100 Dollars ($10,000.00) of earnest money with Seller for each such extended Property, all of which earnest money shall be non-refundable to Buyer thereafter except as provided in Sections 6(d), 7(f), 12, 19 and 20(a).  For purposes of this Agreement, any additional earnest money deposited with Escrow Agent pursuant to this Section 17 shall be added to and become a part of the Earnest Money Deposit.
18.    ASSIGNMENT.  This Agreement may not be assigned by Seller without the prior written consent of Buyer which consent shall not be unreasonably withheld; provided, however, that Buyer acknowledges that certain of the Properties are owned by each of the Sellers or their subsidiaries or affiliates of Seller, and therefore, Seller may assign this Agreement to any such individual Seller or any such subsidiaries or affiliates with respect to such Properties on or before COE without Buyer’s consent.  No assignment by Seller shall relieve it of or limits its obligations under this Agreement.  Buyer further acknowledges and agrees that the covenants, obligations, representations and warranties of each Seller under this Agreement are binding on such Seller only with respect to the Property or Properties owned by such Seller or under contract by such Seller as shown on Exhibit A, and only such Seller is entitled to exercise the 

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rights of Seller with respect to such Property or Properties hereunder.  Buyer may assign its rights under this Agreement to an affiliate of Buyer without seeking or obtaining Seller’s consent. Such assignment shall not become effective until the assignee executes an instrument whereby such assignee expressly assumes all unperformed obligations of Buyer under this Agreement.  Buyer may also designate someone other than Buyer, as grantee and/or assignee, under the Transfer Documents by providing written notice of such designation at least two (2) days prior to COE.  No assignment shall release or otherwise relieve Buyer from any obligations hereunder; provided, however, with respect to any assignment, if COE occurs the assigning party (but not the assignee) shall be relieved of all its obligations arising under this Agreement before, on and after COE.
19.    RISK OF LOSS.  Seller shall bear all risk of loss resulting from or related to damage of or to any Property or any part thereof which may occur prior to COE.  Seller shall also bear all risk of loss resulting from or related to a taking or condemnation of any Property or any part thereof with respect to which 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 any Property is conveyed in lieu of condemnation prior to COE (any such damage, taking or condemnation event a “Risk of Loss Event”).  In the event of any Risk of Loss Event prior to COE, Buyer may, at Buyer’s sole option, by written notice to Seller and Escrow Agent, remove such Property from this Agreement (each, a “Rejected Property”) and the aggregate Purchase Price shall be reduced by the Purchase Price corresponding to such Rejected Property, the portion of the Earnest Money Deposit corresponding to such Rejected Property (i.e., $10,000.00) plus all interest earned thereon shall be returned immediately to Buyer, and this Agreement shall continue in full force and effect with respect to all remaining Properties.  In the alternative, Buyer may attempt to negotiate an appropriate downward adjustment of the Purchase Price for the affected Property.  If Seller and Buyer cannot agree upon such a downward adjustment within a reasonable period (not to exceed ten (10) days from the date Buyer receives notice of the loss), Buyer may remove such Rejected Property from this Agreement as provided above.  In the event of any Risk of Loss Event which does not result in a termination of this Agreement, Seller shall at COE and as a condition precedent thereto, pay Buyer or credit Buyer against the Purchase Price for the affected Property the amount of any insurance or condemnation proceeds actually received by Seller, or assign to Buyer, as of COE and in a form acceptable to Buyer and Seller, all rights or claims for relief to the same, and credit to Buyer an amount equal to the deductible (if any) under the insurance policy.  In the event of any Risk of Loss Event with respect to all Properties prior to COE and Buyer elects to remove all Properties from this Agreement as provided above, then this Agreement shall automatically terminate, whereupon the Earnest Money Deposit shall be paid immediately to Buyer and, except as otherwise provided in this Agreement, neither of the Parties shall have any further liability or obligation hereunder.

20.    REMEDIES.
(a)    Seller’s Breach.  If Seller breaches this Agreement, including, without limitation, a breach of any representation or warranty of Seller set forth herein and/or the failure of Seller to satisfy any conditions precedent to COE specified in Section 12 above that is within Seller’s control, Buyer may, at Buyer’s sole option as Buyer’s sole and exclusive remedy for the applicable breach, either:  (i) by written notice to Seller and Escrow Agent, cancel this Agreement with respect to the Property that is the subject of such breach, whereupon the Earnest Money Deposit allocated to such Property (i.e., $10,000.00) shall be paid immediately by Escrow Agent to Buyer, Seller shall promptly reimburse to Buyer its reasonable out-of-pocket and third-party property diligence expenses incurred with respect to such Property not to exceed $10,000.00 and, except as otherwise provided in this Agreement, neither of the Parties shall have any further liability or obligation hereunder with respect to such Property, (ii) by written notice to Seller and Escrow Agent, cancel this Agreement in its entirety whereupon the Earnest Money Deposit shall be paid immediately by Escrow Agent to Buyer, Seller shall promptly reimburse to Buyer its reasonable out-of-pocket and third-party property diligence expenses and, except as otherwise provided in this Agreement, neither of the Parties shall have any further liability or obligation hereunder, or (iii) seek specific performance against Seller in which event COE shall be automatically extended as necessary.  Notwithstanding the foregoing, if specific performance is unavailable as a remedy to Buyer because of Seller’s affirmative act (e.g., Seller sells a Property to a third party), Buyer shall be entitled to pursue all rights and remedies available at law or in equity.  Seller hereby acknowledges and agrees that the provisions of this Section 20(a) shall not limit any rights or remedies Buyer may have against Seller after COE pursuant to the indemnification under Section 16 or for any misrepresentation, breach of warranty or default by Seller in any of its obligations under this Agreement, the Transfer Documents or any other documents to be entered into pursuant to this Agreement, subject, however, to any applicable express limitations provided herein or therein.

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(b)    Buyer’s Breach.  If Buyer breaches this Agreement, as its sole remedy Seller shall be entitled to retain the Earnest Money Deposit in accordance with subsection 5(b) as Seller’s agreed and total liquidated damages.  Seller hereby waives any right to seek any equitable or legal remedies against Buyer.  Buyer hereby acknowledges and agrees that the provisions of this Section 20(b) shall not limit any rights or remedies Seller may have against Buyer after COE pursuant to any express Seller indemnifications under this Agreement or the Transfer Documents or any other documents to be entered into pursuant to this Agreement.
21.    ATTORNEYS’ FEES.  If there is any litigation to enforce any provisions or rights arising under this Agreement, the unsuccessful party in such litigation, as determined by the court, agrees to pay the successful party, as determined by the court, all costs and expenses, including, but not limited to, reasonable attorneys’ fees incurred by the successful party, such fees to be determined by the court.  For purposes of this Section 21, a party will be considered to be the “successful party” if (a) such party initiated the litigation and substantially obtained the relief which it sought (whether by judgment, voluntary agreement or action of the other party, trial, or alternative dispute resolution process), (b) such party did not initiate the litigation and either (i) received a judgment in its favor, or (ii) did not receive judgment in its favor, but the party receiving the judgment did not substantially obtain the relief which it sought, or (c) the other party to the litigation withdrew its claim or action without having substantially received the relief which it was seeking.
22.    NOTICES.  
 (a)    Addresses.  Except as otherwise required by law, any notice required or permitted hereunder shall be in writing and shall be given by personal delivery, or by deposit in the U.S. Mail, certified or registered, return receipt requested, postage prepaid, addressed to the Parties at the addresses set forth below, or at such other address as a Party may designate in writing pursuant hereto, or by telecopy (fax) or electronic mail (e-mail), or any express or overnight delivery service (e.g., Federal Express), delivery charges prepaid: 
if to Seller:                    Henzlik-Oliver Real Estate Companies, L.L.C.
13356 Metcalf
Overland Park, KS  66213
Attn:  Tyler S. Oliver
Tel.:    (913) 438-9900 
Fax:      (913) 438-9994
Email:  tsoliver@henzlikoliver.com

with copies to:                    Duggan Shadwick Doerr & Kurlbaum LLC
11040 Oakmont
Overland Park, KS 66210
Attn:  Michael J. Book
Tel.:     (913) 498-3536
Fax:     (913) 498-3538
Email:  mbook@kc-dsdlaw.com

if to Buyer:                    Series C, LLC
c/o Cole Real Estate Investments
2325 E. Camelback Road, Suite 1100
Phoenix, AZ 85016
Attn:    Legal Department - Real Estate
Tel.:    (602) 778-8700     
Fax:    (480) 449-7012
Email:  todd.weiss@colereit.com and 
lari.clark@colereit.com 

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with copies to:                    Jason D. Stych, Esq. 
Kutak Rock LLP
8601 N. Scottsdale Road, Suite 300
Scottsdale, AZ 85253
Tel.:    (480) 429-4881
Fax:    (480) 429-5001
Email:  jason.stych@kutakrock.com

if to Escrow Agent:                First American Title Insurance Company
2425 E. Camelback Road, Suite 300
Phoenix, AZ 85016
Attention:  Brandon Grajewski
Tel.:    (602) 567-8145
Fax:    (602) 567-8101
Email:  bgrajewski@firstam.com

(b)     Effective Date of Notices.  Notice shall be deemed to have been given and received on the date on which notice is delivered, if notice is given by personal delivery, e-mail or telecopy, and on the date of deposit in the mail, if mailed or deposited with the overnight carrier, if used.  If escrow has opened, a copy of any notice given to a party shall also be given to Escrow Agent by regular U.S. Mail or by any other method provided for herein.
23.    CLOSING COSTS.  
(a)    Closing Costs.  Seller and Buyer agree to pay closing costs as indicated in this Agreement and in the escrow instructions attached hereto as Exhibit G, and by this reference incorporated herein (the “Escrow Instructions”).  At COE, Seller shall pay (i) the costs of releasing all liens, judgments, and other encumbrances that are to be released and of recording such releases, (ii) one-half of the fees and costs due Escrow Agent for its services, (iii) the transfer tax associated with the sale of the Properties, if any, and (iv) all other costs to be paid by Seller under this Agreement.  At COE, Buyer shall pay (i) one-half of the fees and costs due Escrow Agent for its services, (ii) the costs of the Surveys, and (iii) all other costs to be paid by Buyer under this Agreement.  Except as otherwise provided for in this Agreement, Seller and Buyer will each be solely responsible for and bear all of their own respective expenses, including, without limitation, expenses of legal counsel, accountants, and other advisors incurred at any time in connection with pursuing or consummating the transaction contemplated herein.  
 (b)    Prorations.  Real estate taxes shall be prorated through escrow as of the date that Tenant became responsible for such taxes under the Lease and shall be based upon the current valuation and latest available tax rates.  If, as of COE, a Property is not taxed as a separate tax parcel despite Seller’s efforts to cause such separate tax parcel to be created (such Property referred to as the “Affected Property”), all real estate taxes and assessments shall be prorated as of COE based on an allocation of the Parties’ respective percentage ownership ratio (determined on a gross acreage basis of the applicable tax parcel(s) as of the date of COE, with any taxes based on improvements allocated to the parcel containing the improvements).  Until the Parties are able to obtain a separate assessment for the Affected Property, Seller and Buyer shall each pay, prior to delinquency, their respective share of all taxes due and payable for all assessed tax parcels in which any portion of the Affected Property is located.  For purposes of this Section 23(b), Seller will be deemed to own the balance of any tax parcel(s) (other than the Affected Property) containing any portion of the Affected Property, and Seller will be responsible to pay, or cause to be paid, the share of all taxes and assessments attributable thereto.  Seller shall provide Buyer with a tax bill identifying Buyer’s allocable share of the property taxes due at least ten (10) business days prior to delinquency.  Upon payment of a Party’s allocable share of such property taxes, if any, such Party shall provide the other Party with documentation reasonably requested to confirm such payment. If either Party fails to pay its proportionate share of the taxes prior to delinquency, the other Party may, following at least ten (10) days prior written notice to the nonpaying Party, pay the entire tax bill then due.  The nonpaying Party shall thereafter pay its respective share of the taxes to the paying Party together with interest on such amount at the rate of twelve percent (12%) per annum from the date paid until all such sums together with interest thereon is repaid.  Buyer and Seller will cooperate with each other after COE to cause each Affected Property to be assessed as a separate tax parcel.  If COE for a Property is on or after the 20th day of the calendar month in which such COE occurs, the 

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monthly base rent due to Buyer under the terms of the applicable Lease for the full calendar month of the month following the day on which COE occurs (the “Initial Rent”) shall be credited to Buyer at COE (and, in such event, Tenant shall pay the Initial Rent due under such Lease to Seller and, notwithstanding the terms of the Lease, shall not be obligated to make a payment for the Initial Rent to Buyer).  In such event, the notice provided to the Tenant with respect to the sale of the Property to Buyer shall expressly request rent payment consistent with the foregoing allocation.   All other prorations shall be calculated through escrow as of COE based upon the latest available information, including, without limitation, a credit to Buyer for any rent prepaid by Tenant for the period beginning with and including the date on which the closing occurs through and including the last day of the month in which the closing occurs.  All other credits to Buyer shall be similarly prorated.  Any other closing costs not specifically designated as the responsibility of either Party in the Escrow Instructions or in this Agreement shall be paid by Seller and Buyer according to the usual and customary allocation of the same for the State and County where the Property is located by Escrow Agent.  Seller agrees that all closing costs payable by Seller shall be deducted from Seller’s proceeds otherwise payable to Seller at COE.  Buyer shall deposit with Escrow Agent sufficient cash to pay all of Buyer’s closing costs.  Except as provided in this Section 23, Seller and Buyer shall each bear their own costs in regard to this Agreement.
(c)    Post-Closing Adjustment.  If after COE, the parties discover any errors in adjustments and apportionments, the same shall be corrected as soon after their discovery as possible.  The provision of this Section 23(c) shall survive COE except that no adjustment shall be made later than eighteen (18) months after COE unless prior to such date the Party seeking the adjustment shall have delivered a written notice to the other Party specifying the nature and basis for such claim; provided, however, in the event an adjustment is sought due to the fact that current tax bills with respect to one or more Properties had not yet been issued as of COE, the provisions of this Section 23(c) shall survive with respect to any closing proration of real property taxes until ninety (90) days after Buyer’s receipt of tax bills for the period of time during which COE occurred.  In the event that such claim is valid, the Party against whom the claim is sought shall have thirty (30) days in which to remit any adjustment due.
(d)    Instructions.  This Agreement, together with the Escrow Instructions, shall constitute escrow instructions for the transaction contemplated herein.  Such escrow instructions shall be construed as applying principally to Escrow Agent’s employment. 
24.    ESCROW CANCELLATION CHARGES.  If escrow fails to close because of Seller’s default, Seller shall be liable for any cancellation charges of Escrow Agent.  If escrow fails to close because of Buyer’s default, Buyer shall be liable for any cancellation charges of Escrow Agent.  If escrow fails to close for any other reason, Seller shall be liable for any cancellation charges of Escrow Agent.  The provisions of this Section 24 shall survive cancellation of this Agreement.
25.    APPROVALS.  Concerning all matters in this Agreement requiring the consent or approval of any Party, the Parties agree that any such consent or approval shall not be unreasonably withheld unless otherwise provided in this Agreement.  
26.    COVENANT NOT TO SUE.  Except as expressly provided in this Agreement, effective as of the COE for a Property, Seller covenants with Buyer not to sue any Tenant for any claims of whatever kind or nature, in law or equity, whether now known or unknown to Seller, whether contingent or matured, that Seller may now have or hereafter acquire against Tenant for any costs, loss, liability, damage, expenses, demand, action or cause of action arising from or related to the applicable Lease for such Property arising from events occurring prior to COE, unless Seller shall be made a party to a lawsuit by Tenant or any third party with respect to any such Lease or Property.
27.    ADDITIONAL ACTS.  The Parties agree to execute promptly such other documents and to perform such other acts as may be reasonably necessary to carry out the purpose and intent of this Agreement.
28.    GOVERNING LAW.  This Agreement shall be governed by and construed or enforced in accordance with the laws of the State of Kansas.  
29.    CONSTRUCTION.  The terms and provisions of this Agreement represent the results of negotiations among the Parties, each of which has been represented by counsel of its own choosing, and neither of which has acted 

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under any duress or compulsion, whether legal, economic or otherwise.  Consequently, the terms and provisions of this Agreement shall be interpreted and construed in accordance with their usual and customary meanings, and the Parties each hereby waive the application of any rule of law which would otherwise be applicable in connection with the interpretation and construction of this Agreement that ambiguous or conflicting terms or provisions contained in this Agreement shall be interpreted or construed against the Party whose attorney prepared the executed Agreement or any earlier draft of the same.
30.    TIME OF ESSENCE.  Time is of the essence of this Agreement.  However, if this Agreement requires any act to be done or action to be taken on a date which is a Saturday, Sunday or legal holiday, such act or action shall be deemed to have been validly done or taken if done or taken on the next succeeding day which is not a Saturday, Sunday or legal holiday, and the successive periods shall be deemed extended accordingly.
31.    INTERPRETATION.  If there is any specific and direct conflict between, or any ambiguity resulting from, the terms and provisions of this Agreement and the terms and provisions of any document, instrument or other agreement executed in connection herewith or in furtherance hereof, including any Exhibits hereto, the same shall be consistently interpreted in such manner as to give effect to the general purposes and intention as expressed in this Agreement which shall be deemed to prevail and control.
32.    HEADINGS.  The headings of this Agreement are for reference only and shall not limit or define the meaning of any provision of this Agreement.  
33.    FAX AND COUNTERPARTS.  This Agreement may be executed by facsimile, by email (in “.pdf” format) and/or in any number of counterparts, each of which when so executed and delivered shall be deemed an original, and all of which together shall constitute one and the same instrument.
34.    INCORPORATION OF EXHIBITS BY REFERENCE.  All Exhibits to this Agreement are fully incorporated herein as though set forth at length herein.
35.    SEVERABILITY.  If any provision of this Agreement is unenforceable, the remaining provisions shall nevertheless be kept in effect.
36.    ENTIRE AGREEMENT.  This Agreement contains the entire agreement between the Parties and supersedes all prior agreements, oral or written, with respect to the subject matter hereof.  The provisions of this Agreement shall be construed as a whole and not strictly for or against any Party.
37.    Indemnity.    Seller shall indemnify, hold harmless and defend Buyer, Buyer’s affiliates, the partners, trustees, shareholders, directors, officers, attorneys, employees and agents of each of them, and their respective heirs, successors, personal representatives and assigns (collectively, the “Indemnified Parties”) from 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, attorneys’ fees and costs), whether direct or indirect, known or unknown, foreseen or unforeseen (collectively, “Claims”) that may arise on account of or in any way be connected with any actions, suits, proceedings or claims for tort liability brought by third parties (other than Tenant) against Buyer (a) relating to any actual or alleged events, acts or omissions occurring with respect to any Property prior to COE for such Property, and/or (b) based upon Buyer’s ownership of any Property but with respect to which the claimed loss, damage or injury occurred prior to COE for such Property.  Buyer shall indemnify, hold harmless and defend Seller, Seller’s affiliates, the partners, trustees, shareholders, directors, officers, attorneys, employees and agents of each of them, and their respective heirs, successors, personal representatives and assigns from any and all Claims that may arise on account of or in any way be connected with any actions, suits, proceedings or claims for tort liability brought by third parties (other than Tenant) against Seller (y) relating to any actual or alleged events, acts or omissions occurring with respect to any Property from and after COE for such Property, and/or (z) based upon Seller’s ownership of any Property but with respect to which the claimed loss, damage or injury occurred from and after COE for such Property.  The provisions of this Section 37 shall survive COE.

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38.    PRIVILEGE TAXES.  Seller represents, warrants and covenants to Buyer that all state and local transaction privilege, sales, excise, use or similar taxes relating to the development, sale or rental of each Property (including, without limitation any speculative builder tax, owner-builder tax, or construction contractor tax) accruing for any period prior to COE have been paid and Seller shall pay any such taxes assessed on the sale of any Property to Buyer as and when due.  Seller shall indemnify, hold harmless and defend the Indemnified Parties from any and all Claims relating to a breach of the preceding sentence.  The provisions of this Section shall survive COE.  

39.    SEC S-X 3-14 Audit.  In order to enable Buyer to comply with reporting requirements, Seller agrees to provide Buyer and its representatives information sufficient for Buyer 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 Properties for the current fiscal year and the most recent pre-acquisition fiscal year, and upon request, support for certain operating revenues and expenses specific to the Properties (collectively, the “SEC Filing Information”).  Seller understands that certain of such financial information may be included in filings required to be made by Buyer with the U.S. Securities and Exchange Commission.  This Section 39 shall survive Closing for a period of one (1) year.
40.    Punchlist Holdback. If the estoppel certificate from Tenant indicates that there are any punchlist items (“Punchlist Items”) still to be completed by Seller with respect to any Property or if, prior to COE for such Property, Tenant has not confirmed to Seller in writing that such items have been completed to Tenant’s reasonable satisfaction, then at such COE, Seller may elect to either:  (i) extend the COE until three (3) business days after the date that Tenant has confirmed in writing that all Punchlist Items have been completed to Tenant’s reasonable satisfaction, or (ii) proceed to Closing and have Seller escrow an amount equal to One Hundred Twenty Five Percent (125%) of the estimated cost to cure all Punchlist Items yet uncured as of such COE (such cost to be estimated by Seller’s general contractor or architect, subject to Buyer’s reasonable approval of such estimate) (the “Punchlist Escrow”).  The Punchlist Escrow shall be retained by the Escrow Agent from the Purchase Price paid by Buyer with respect to such Property and shall be held by the Escrow Agent or other agreed upon escrow agent pursuant to the terms of an escrow agreement executed by Buyer, Seller and the escrow agent, which shall provide, in part, for release of the Punchlist Escrow to Seller upon written confirmation from Tenant of completion of the Punchlist Items and as more particularly set forth below.  Buyer and Seller shall use good faith efforts to agree upon the form of escrow agreement during the Second Study Period for the corresponding Property.

After Closing, Seller and its agents and contractors shall have access to the applicable Property to complete the Punchlist Items, subject to the rights of Tenant under the Lease.  If Buyer has not received such written confirmation from Tenant that all such items have been completed to Tenant’s reasonable satisfaction within ninety (90) days following COE for the applicable Property (the “Punchlist Cure Deadline”), or if Seller has received notice from Tenant that Seller is in default of its obligations with respect to the Punchlist Items pursuant to the applicable Lease, then Buyer shall be entitled, but not obligated, to undertake the cure of any remaining Punchlist Items and in connection therewith shall be entitled to retain up to the entire balance of the Punchlist Escrow upon presentation to Seller of invoices and other receipts for expenses reasonably incurred in connection therewith.  Further, upon presentation by Buyer of evidence reasonably satisfactory to Seller that Buyer expended amounts in excess of the amount of the Punchlist Escrow to complete such Punchlist Items, Seller shall pay or cause to be paid to Buyer an amount equal to such excess within fifteen (15) days after receipt of such evidence.  Notwithstanding the foregoing, in the event Seller reasonably demonstrates to Buyer that the Punchlist Items have been completed prior to the expiration of the Punchlist Cure Deadline and that the failure of Buyer to receive written confirmation from Tenant of such completion is due to Tenant’s delay in reviewing the Punchlist Items, then the Punchlist Cure Deadline shall be extended until Tenant completes its review of the Punchlist Items and issues its confirmation (or disapproval) of such Punchlist Items and Seller is afforded such additional time as is permitted pursuant to the Lease to complete the remaining Punchlist Items.  In addition, the Punchlist Cure Deadline shall be extended on a day-for-day basis for each day of Seller’s delay in completing the Punchlist Items that is caused by any event or condition beyond the reasonable control of Seller, including inclement weather or shortage of materials.
41.    TENANT AUDIT RIGHT.  In the event that Tenant has the right to inspect and audit the books, records and other documents of the landlord under any of the Leases which evidence the purchase price of the Real Property, the development and construction costs of the Improvements, and/or common area maintenance costs and expenses, 

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Seller hereby covenants and agrees that it shall retain such books, records and other documents which will enable Tenant to conduct a full and complete audit thereof until the date that is six (6) months after the latest date that Tenant could demand an inspection and/or audit thereof pursuant to such Lease and, upon written request therefore from Buyer, or any successor or assign, thereof, shall provide both Buyer and Tenant with reasonable access thereto and otherwise reasonably cooperate with both Buyer and Tenant with respect to such inspection and/or audit by Tenant.  In the event Tenant claims any right to a credit, refund or other reimbursement as a result of such audit for any periods prior to COE, Seller shall indemnify, hold harmless and defend the Indemnified Parties from any and all Claims relating thereto or arising therefrom. The provisions of this Section 41 shall survive COE.
42.    LIKE-KIND EXCHANGE.  (a)  Seller agrees to reasonably cooperate with Buyer by executing such documents or taking such action as Buyer reasonably requests in connection with any tax deferred exchange pursuant to Section 1031 of the Tax Code, provided that (i) the transaction contemplated by this Agreement shall not be conditioned upon completion of such exchange; (ii) Seller shall not be required to take title to any real property in connection with any such exchange; (iii) Seller shall not incur any liability by reason of any such exchange; and (iv) Buyer shall not be relieved of any of its obligations under this Agreement as a result of any such exchange.
(b)  Buyer agrees to reasonably cooperate with Seller by executing such documents or taking such action as Seller reasonably requests in connection with any tax deferred exchange pursuant to Section 1031 of the Tax Code, provided that (i) the transaction contemplated by this Agreement shall not be conditioned upon completion of such exchange; (ii) Buyer shall not be required to take title to any real property (other than the Properties) in connection with any such exchange; (iii) Buyer shall not incur any liability by reason of any such exchange; and (iv) Seller shall not be relieved of any of its obligations under this Agreement as a result of any such exchange.
43.  SUBSTITUTION OF PROPERTIES.  In the event that any Property shall become a Rejected Property or Removed Property under this Agreement, Seller may, by providing written notice to Buyer within two (2) days after the date on which such Property became a Rejected Property or Removed Property, substitute a different property (a “Substitute Property”) for such Property, and Buyer shall be provided with a First Study Period and Second Study Period with respect to such Substitute Property and all of Buyer’s conditions to COE shall apply to such Substitute Property.  Seller shall not have the right to substitute a Property for any Substitute Property that becomes a Rejected Property or Removed Property under this Agreement.  The Purchase Price for such Substitute Property shall be determined by applying a Cap Rate to the Rent payable under the Lease for such Substitute Property to be reasonably agreed upon by Seller and Buyer, subject to adjustment as provided in the last paragraph of Section 4.  The inclusion of a Substitute Property into this Agreement and the Purchase Price of the Substitute Property shall be evidenced by an amendment to this Agreement executed by Seller and Buyer.  Neither party shall have any rights or obligations with respect to a Substitute Property until such amendment is fully executed by the parties.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK
SIGNATURES FOLLOW]

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IN WITNESS WHEREOF, Seller and Buyer have executed this Agreement as of the Effective Date.

	
				
	SELLER:
	5700 Holdings, LLC, a Kansas limited liability company

	 
	 
	 

	 
	By:
	/s/ Tyler S. Oliver 

	 
	 
	Tyler S. Oliver, Manager

	 
	 
	 
	 

	 
	Tipton Holdings, LLC, a Kansas limited liability company

	 
	 
	 

	 
	By:
	/s/ Tyler S. Oliver 

	 
	 
	Tyler S. Oliver, Manager

	
				
	BUYER:
	Series C, LLC, an Arizona limited liability company

	 
	 
	 

	 
	By:
	/s/ Todd J. Weiss

	 
	 
	Todd J. Weiss

	 
	 
	Authorized Officer

21CCPT V 03.31.2014 EX. 10.6

Exhibit 10.6

ASSIGNMENT AND ASSUMPTION OF PURCHASE AGREEMENT
Advance Auto & O’Reilly’s: 2 pack NC
This Assignment and Assumption of Purchase Agreement (this "Assignment") is made to be effective as of February 17, 2014 (the “Effective Date”) by and between AR CAPITAL, LLC ("Assignor") and Series C, LLC, an Arizona limited liability company ("Assignee").
RECITALS
A.    Assignor is the purchaser party under that certain real estate purchase and sale agreement described on Exhibit A attached hereto (including any documents amending or supplementing such Agreement, collectively the “Agreement”) between Assignor and the selling party(ies) under the Agreement, as also specified on Exhibit A attached hereto (whether on one or more, collectively the “Seller”), solely with respect to the property and rights described in the Agreement (the “Property”).  
B.    Upon and subject to the terms of this Assignment, Assignor desires to assign all of Assignor’s right, title and interest in, to and under the Agreement, solely as such relate to the Fairmont Property (as defined in the Agreement), to Assignee, and Assignee desires to accept and assume all such right, title and interest of Assignor.

AGREEMENT
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, Assignor and Assignee agree as follows:
1.Assignment and Assumption.  As of the Effective Date, Assignor assigns all of its right, title and interest in, to and under the Agreement with respect to the Fairmont Property to Assignee, and Assignee accepts and assumes all of Assignor's right, title and interest in, to and under the Agreement, solely as such relate to the Fairmont Property.  Assignee shall perform all obligations of Assignor under the Agreement, as such relate to the Fairmont Property, from and after the Effective Date, including without limitation timely making the earnest money deposits called for by the Agreement.

2.No Release of Assignor.  This Assignment shall not release or otherwise relieve Assignor from any obligations owing to Seller under the Agreement; provided, however, that if closing under the Agreement occurs, Assignor (but not Assignee) shall thereupon be relieved of all of Assignor’s obligations under the Agreement, with respect to the Fairmont Property.  

3.Indemnity.  Assignor will indemnify, defend and hold Assignee harmless from and against any claims, damages or liabilities asserted against Assignee which arise from any acts or omissions of Assignor with respect to the Agreement or the Property prior to the Effective Date.  Assignee will indemnify, defend and hold Assignor harmless from and against any claims, damages or liabilities asserted against Assignor which arise from any acts or omissions of Assignee with respect to the Agreement or the Fairmont Property from and after the Effective Date. 

4.Further Assignment by Assignee.  The parties acknowledge and agree that Assignee intends to further assign the Agreement prior to the closing to a special purpose entity formed to take title to the Property, which entity will be affiliated with, controlled by, or under common control with Assignee; and that upon such further assignment, such assignee entity will be deemed to replace Assignee for all purposes under the Agreement, as assigned hereby.

5.No Amendment.  Except as expressly stated herein regarding the assignment to Assignee, this Assignment is not intended to amend or otherwise modify or limit any of the provisions of the Agreement.

6.Governing Law.  This Assignment shall be governed by the laws of the same State as the Agreement.  

7.Counterparts.  This Assignment may be executed in any number of counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.  Executed signature pages to this Assignment may be delivered by facsimile or other electronic transmission and any such signature page shall be deemed an original.

[SIGNATURES ON FOLLOWING PAGE]

2

IN WITNESS WHEREOF, the parties hereto have caused their duly authorized representatives to execute and deliver this Assignment as of the date first above written.

	
							
	 
	 
	Assignor:

	 
	 
	 

	 
	 
	AR CAPITAL, LLC

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	By:
	/s/ Edward M. Weil

	 
	 
	 
	 
	 
	Name:
	Edward M. Weil

	 
	 
	 
	 
	 
	Title:
	Authorized Signatory

	
							
	 
	 
	Assignee:

	 
	 
	 

	 
	 
	Series C, LLC an Arizona limited liability company

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	By:
	/s/ Todd J. Weiss

	 
	 
	 
	 
	 
	Name:
	Todd J. Weiss

	 
	 
	 
	 
	 
	Its:
	Authorized Officer

3

AGREEMENT FOR PURCHASE AND SALE OF REAL PROPERTY
Advance Auto & O’Reilly Auto Parts:  2-Pack

THIS AGREEMENT (“Agreement”) is made and entered into as of the Effective Date by and between AR CAPITAL, LLC (“Buyer”) on the one hand, and FAIRMONT PROPERTIES, LLC (“Fairmont”) and DJSMD, LLC (“DJSMD” and together with Fairmont, collectively, “Seller”) on the other hand.
BACKGROUND
A.Fairmont is the owner of the Fairmont Property.  DJSMD is the owner of the Fayetteville Property.

B.Buyer desires to purchase the Property and Seller desires to sell the Property to Buyer on the terms and conditions set forth in this Agreement.

In consideration of the mutual promises set forth herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, agree as follows:

1.Terms and Definitions.  The terms listed below shall have the respective meaning given them as set forth adjacent to each term.
(a)“Advance Auto Lease” shall mean that certain lease described on Exhibit A2 attached hereto and made a part hereof  and referred to in  Section 6(b)(i) of this Agreement between Fairmont, as landlord, and Advance Stores Company, Incorporated (“Advance”), as tenant, as amended.
(b)“Broker” shall mean Lori Schneider of Marcus and Millichap, acting as Seller’s agent.
(c)“Closing” shall mean the consummation of the transaction contemplated herein, which shall occur, subject to any applicable extension periods set forth in this Agreement, on or before the date that is thirty (30) business days after the last day of the Due Diligence Period (as defined herein) unless the Buyer waives the full Due Diligence Period and elects to close earlier by providing written notice thereof to Seller.  The date of Closing is sometimes hereinafter referred to as the “Closing Date.”  Neither party will need to be present at Closing, it being anticipated that the parties will deliver all Closing documents and deliverables in escrow to the Escrow Agent prior to the date of Closing.
(d)“Due Diligence Period” shall mean the period beginning upon the Effective Date and extending until the earlier of (i) 11:59 PM EST on the date that is thirty (30) days thereafter or (ii) the date on which Seller receives written notice of Buyer’s waiver of the Due Diligence Period.  Seller shall deliver to Buyer all of the Due Diligence Materials within five (5) business days after the Effective Date, and for each day that passes thereafter until all of the Due Diligence Materials are delivered to Buyer, the Due Diligence Period and the Closing Date shall be extended by one (1) business day.  
(e)“Earnest Money” shall mean SEVENTY-FIVE THOUSAND and NO/100 Dollars ($75,000.00).  The Earnest Money shall be delivered to Escrow Agent within three (3) business days after the Effective Date.  The Earnest Money shall be deposited by Buyer in escrow with Escrow Agent, to be applied as part payment of the Purchase Price at the time the sale is closed, or disbursed as agreed upon in accordance with the terms of this Agreement.  
(f) “Effective Date” This Agreement shall be signed by both Seller and Buyer.  The date that is one (1) business day after the date of execution and delivery of this Agreement by both Seller and Buyer shall be the “Effective Date” of this Agreement.

(g)    “Escrow Agent” shall mean Stewart Title Guaranty, 5935 Carnegie Blvd., Suite 301, Charlotte, NC 28209. Attention:  Regina L. Fiegel, Telephone:  (704-401-2010), Telecopy: (704-401-2039); E-Mail: rfiegel@stewart.com The parties agree that the Escrow Agent shall be responsible for (x) organizing the issuance of the Commitment and Title Policy, (y) preparation of the closing statement, and (z) collection and disbursement of the funds.
(h)    “Fairmont Property” shall collectively mean (i) those certain parcels of real property, all of which are listed on Exhibit A1, together with all right, title and interest of  Fairmont in and to the land lying in the bed of any street or highway in front of or adjoining such real property, and all appurtenances and all the estate and rights of Fairmont in and appurtenant to such parcels of real property, including, without limitation, all appurtenant easements and rights-of-way, and Fairmont Building (as hereinafter defined) and all other improvements thereon, and all air and subsurface rights appurtenant to such parcels of real property, as the case may be (such parcels of real property, together with all such rights and appurtenances, being collectively referred to herein as the “Fairmont Land”); (ii) the buildings (the “Fairmont Building”), facilities and other improvements situated on the Fairmont Land or required to be constructed under the Fairmont Lease (collectively, the “Improvements”); (iii) all right, title and interest of Fairmont, if any, in and to the lighting, electrical, mechanical, plumbing and heating, ventilation and air conditioning systems used in connection with the Fairmont Land and the Fairmont Building, and all carpeting, draperies, appliances and other fixtures and equipment attached or appurtenant to the Fairmont Land together with all personal property (other than furniture, equipment not necessary to operate the Fairmont Building or building systems and not permanently affixed to the Fairmont Building or Fairmont Land, trade fixtures and inventory) owned by Fairmont and located on the Fairmont Land or on and/or in the Fairmont Building (collectively, the “Fairmont Personal Property”); (iv) all right, title and interest of Fairmont in and to all warranties and guaranties respecting the Fairmont Building and Fairmont Personal Property; (v) to the extent not otherwise described in subsection (i), all right, title and interest of Fairmont in and to all leases respecting the Fairmont Building and Personal Property, including, without limitation, all prepaid rent or security or other deposits thereunder; (vi) all right, title and interest of Fairmont in and to all licenses, permits, authorizations and approvals issued by any governmental agency or authority which pertain to the Fairmont Land and the Fairmont Building, to the extent they exist and are transferable and assignable; and (vii) to the extent the same are assignable, all site plans, surveys, and plans which relate to the Fairmont Land.
(i)    “Fayetteville Property” shall collectively mean (i) those certain parcels of real property, all of which are listed on Exhibit A1, together with all right, title and interest of  DJSMD in and to the land lying in the bed of any street or highway in front of or adjoining such real property, and all appurtenances and all the estate and rights of DJSMD in and appurtenant to such parcels of real property, including, without limitation, all appurtenant easements and rights-of-way, and Fayetteville Building (as hereinafter defined) and all other improvements thereon, and all air and subsurface rights appurtenant to such parcels of real property, as the case may be (such parcels of real property, together with all such rights and appurtenances, being collectively referred to herein as the “Fayetteville Land”); (ii) the buildings (the “Fayetteville Building”), facilities and other improvements situated on the Fayetteville Land or required to be constructed under the Fayetteville Lease (collectively, the “Improvements”); (iii) all right, title and interest of DJSMD, if any, in and to the lighting, electrical, mechanical, plumbing and heating, ventilation and air conditioning systems used in connection with the Fayetteville Land and the Fayetteville Building, and all carpeting, draperies, appliances and other fixtures and equipment attached or appurtenant to the Fayetteville Land together with all personal property (other than furniture, equipment not necessary to operate the Fayetteville Building or building systems and not permanently affixed to the Fayetteville Building or Fayetteville Land, trade fixtures and inventory) owned by DJSMD and located on the Fayetteville Land or on and/or in the Fayetteville Building (collectively, the “Fayetteville Personal Property”); (iv) all right, title and interest of DJSMD in and to all warranties and guaranties respecting the Fayetteville Building and Personal Property; (v) to the extent not otherwise described in subsection (i), all right, title and interest of DJSMD in and to all leases respecting the Fayetteville Building and Fayetteville Personal Property, including, without limitation, all prepaid rent or security or other deposits thereunder; (vi) all right, title and interest of DJSMD in and to all licenses, permits, authorizations and approvals issued by any governmental agency or authority which pertain to the Fayetteville Land and the Fayetteville Building, to the extent they exist and are transferable and assignable; and (vii) to the extent the same are assignable, all site plans, surveys, and plans which relate to the Fayetteville Land.
(j)     “Leases” shall mean collectively the Advance Auto Lease and the O’Reilly Auto Lease.

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(k)    “O’Reilly Auto Lease” shall mean that certain lease described on Exhibit A2 attached hereto and made a part hereof  and referred to in  Section 6(b)(i) of this Agreement between DJSMD, as landlord, and O’Reilly Automotive Stores, Inc. (“O’Reilly”), as tenant, as amended.
(l)    “Property” shall mean, collectively, the Fairmont Property and the Fayetteville Property.
(m)     “Purchase Price” shall mean the amount listed for each Property as set forth opposite the designation of such Property on Exhibit A1 attached hereto. The Purchase Price is based on a capitalization rate of 7.01% and the rents set forth on Exhibit A2.  If the rents on the Closing Date are not the same as set forth on Exhibit A2, the Purchase Price shall be adjusted accordingly.  The Purchase Price shall be allocated between the Fairmont Property and the Fayetteville Property based on such capitalization rate.
(n)    Seller and Buyer’s Notice address 
(i)“Seller’s Notice Address” shall be as follows, except as same may be changed pursuant to the Notice section herein:  

DJSMD, LLC or Fairmont Properties, LLC, as applicable
1121-P Military Cutoff Rd.
Wilmington, NC 28405
Tel. No.: 910-256-2211 ext 125
Email: jason@swainassociates.com
And to:
George E. Hollodick
Blanco Tackabery Matamoros, P.A.
P.O. Drawer 25008
Winston Salem, NC 27114
Tel. No.: 336-761-1250
Email: geh@blancolaw.com

(ii)“Buyer’s Notice Address” shall be as follows, except as same may be changed pursuant to the Notice section herein:

Michael Weil
AR Capital, LLC 
405 Park Avenue, 15th Floor
New York, NY 10022
Tel. No.: 212.415.6505
Fax No.:  857.207.3397
Email: mweil@arlcap.com
And to:
Jesse Galloway
AR Capital, LLC 
405 Park Avenue, 15th Floor
New York, NY 10022
Tel. No.: 212.415.6516
Fax No.: 646.861.7751
Email: jgalloway@arlcap.com

And Due Diligence Materials (if provided by email) to:
duediligence@arlcap.com
        

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With hard copies and/or cds to:
James A. (Jim) Mezzanotte
AR Capital, LLC  
7621 Little Avenue, Suite 200
Charlotte, NC  28226
Tel. No.: 704.626.4400
Fax No.: 212.415.6507
Email: jmezzanotte@arlcap.com

(o)    “Tenant” shall mean collectively Advance and O’Reilly.

2.Purchase and Sale of the Property.  Subject to the terms of this Agreement, DJSMD agrees to sell the Fayetteville Property, and Fairmont agrees to sell the Fairmont Property, to Buyer, and Buyer agrees to purchase the Property, for the Purchase Price set forth above.   Notwithstanding anything herein to the contrary, in no event shall Buyer be entitled to purchase less than all of the Property.

3.Payment of Purchase Price.  The Purchase Price to be paid by Buyer to Seller shall be paid by wire transfer of immediately available funds in the amount of the Purchase Price plus or minus prorations, credits and adjustments as provided in Section 4 and elsewhere in this Agreement to Escrow Agent, at the time of Closing, or as otherwise agreed to between Buyer and Seller.

4.Proration of Expenses and Payment of Costs and Recording Fees.

(a)With respect to all real estate taxes, rollback taxes constituting a lien on the Property (collectively “Taxes and Assessments”) which are due and payable on or before the Closing Date shall be remitted to the collecting authorities or to the Escrow Agent by Seller prior to or at Closing.  There shall be no closing adjustments between the parties for Taxes and Assessments not yet due and payable at Closing, or for any personal property taxes or water and sewer use charges.  
(b)All rents shall be prorated as of the Closing Date with Buyer being credited for rent attributable to the day of Closing through and including the last day of the calendar month in which the Closing Date occurs.
(c)Seller shall pay or be charged with the following costs and expenses in connection with this transaction which costs shall be referred to as “Seller’s Closing Costs”:
(i)Transfer taxes and conveyance fees on the sale and transfer of the Property, specifically excluding mansion taxes, if applicable;

(ii)Broker’s commission payments (for both leasing and sales commissions earned) in accordance with Section 24 of this Agreement; and

(iii)Costs incurred in connection with the release of existing debt, including, but not limited to, prepayment penalty fees and recording fees for documents providing for the release of the applicable Property from the existing debt.

(d)Buyer shall pay or be charged with the following costs and expenses in connection with this transaction, which costs shall be referred to as “Buyer’s Closing Costs”:
(i)100% of all Title Policy premiums, including search costs and a survey endorsement, if any;
(ii)All recording fees (other than transfer taxes);
(iii)all costs and expenses in connection with Buyer’s financing, including appraisal, points, commitment fees and the like and costs for the filing of all documents necessary to complete such financing and related documentary stamp tax and intangibles tax; and

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(iv)Buyer shall pay for the cost of its own survey, Phase 1 environmental study and due diligence investigations.

(e)Each party shall pay its own legal fees incidental to the negotiation, execution and delivery of this Agreement and the consummation of the transactions contemplated hereby.
(f)Seller and Buyer each shall pay one-half of all reasonable escrow fees charged by Escrow Agent.

5.Title. At Closing, each Seller agrees to convey to Buyer fee simple marketable title to its respective portion of the Property by special warranty deed, free and clear of all liens, defects of title, conditions, easements, assessments, restrictions, and encumbrances except for Permitted Exceptions (as hereinafter defined).  

6.Examination of Property.  Seller and Buyer hereby agree as follows:
(a)Buyer shall order a title commitment (the “Title Commitment”) from Escrow Agent, a survey and a zoning report for the Property promptly after the date hereof.  All matters shown in the Title Commitment, survey or zoning report (“Title Matters”) with respect to which Buyer fails to object prior to the expiration of the Due Diligence Period shall be deemed “Permitted Exceptions”.  However, Permitted Exceptions shall not include any mechanic’s lien (but excluding any mechanic lien related to either Buyer’s due diligence or any Tenant’s construction or renovations) or any monetary lien, or any deeds of trust, mortgage, or other loan documents created by Seller and secured by the Property (collectively, “Liens”).  Seller shall be required to cure or remove all such Liens (by payment, bond deposit or indemnity acceptable to Escrow Agent) (but excluding any mechanic lien related to either Buyer’s due diligence or any Tenant’s renovations).  Seller shall have no obligation to cure any Title Matter objected to, except as aforesaid, provided Seller notifies Buyer of any objections which Seller elects not to remove or cure within five (5) business days following receipt of Buyer’s objections.  Unless Seller shall have provided written notice with such five (5) business day period of its intent to cure such objected to matter, Seller shall be deemed to have refused to remove any such objected to matter.  In the event that Seller refuses to remove or cure any objections, Buyer shall have the right to terminate this Agreement upon written notice to Seller given within five (5) business days after Seller’s notice, or deemed notice, that it refuses to cure any such objected to matter, upon which termination the Earnest Money shall be returned to Buyer and neither party shall have any further obligation hereunder, except as otherwise expressly set forth herein.  If any newly created matter is subsequently added to the Title Commitment by the Escrow Agent at or prior to Closing, Buyer shall have until the earlier of (i) ten (10) days after the Buyer’s receipt of the updated, revised Title Commitment showing the new title exception, together with a legible copy of any such new matter, or (ii) the date of Closing, to provide Seller with written notice of its objection to any such new title exception (an “Objection”).  If Seller does not remove or cure such Objection prior to the date of Closing, Buyer may terminate this Agreement, in which case the Earnest Money shall be returned to Buyer and neither party shall have any further obligation hereunder, except as otherwise expressly set forth herein. 
(b)Within five (5) business days following the Effective Date, Seller shall provide to Buyer copies of the following documents and materials pertaining to each Property to the extent within Seller’s possession or control: (i) a complete copy of the Leases, including all amendments thereto and of all material correspondence relating thereto; (ii) a copy of all surveys and site plans of the Property, including without limitation any as-built survey obtained or delivered to Tenants of the Property; (iii) a copy of all architectural plans and specifications and construction drawings and contracts for improvements located on the Property; (iv) a copy of Seller’s title insurance policies relating to the Property; (v) a copy of the certificate of occupancy (or local equivalent) and zoning reports for the Property; and of all governmental permits/approvals; (vi) a copy of all environmental, engineering and physical condition reports for the Property; (vii) copies of the Property’s real estate tax bills for the current and prior two (2) tax years or, if the Property has been owned by Seller for less than two (2) tax years, for the period of ownership; (viii) the operating statements of the Property for the twenty four (24) calendar months immediately preceding the Effective Date or if the Tenant has been operating for less than twenty-four (24) months, for the period of operation; (ix) all of Seller’s service contracts and insurance policies which affect the Property, if any; (x) a copy of all warranties in favor of Seller relating to the improvements constructed on the Property, including without limitation any structural slab and/or roof warranties; and (xi) a written inventory of all items of personal property owned by Seller to be conveyed to Buyer, if any (the “Due Diligence Materials”).  Seller shall deliver any other documents relating to the Property reasonably requested by Buyer, to the extent within Seller’s possession or control, within three (3) business days following such 

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request.  Additionally, during the term of this Agreement, Buyer, its agents and designees, shall have the right to enter the Property for the purposes of inspecting the Property and making surveys, mechanical and structural engineering studies, inspecting construction, and conducting any other investigations and inspections as Buyer may reasonably require to assess the condition and suitability of the Property (but expressly excluding any invasive testing or borings); provided, however, that such activities by or on behalf of Buyer on the Property shall not damage the Property nor interfere with construction on the Property or the conduct of business by Tenant under the Lease; and provided further, however, that Buyer shall indemnify and hold Seller harmless from and against any and all costs, liabilities, claims or damages (whether to persons or property) to the extent resulting from the activities of Buyer on the Property, which obligation shall survive Closing or any termination of this Agreement.  Seller shall reasonably cooperate with the efforts of Buyer and the Buyer’s representatives to inspect the Property.  After the Effective Date, Buyer shall be permitted to speak and meet with Tenant in connection with Buyer’s due diligence.  Upon signing this agreement, Seller shall provide Buyer with the name of a contact person(s) for the purpose of arranging site visits.  Buyer shall give Seller reasonable written notice (which in any event shall not be less than two (2) business days) before entering the Property, and Seller may have a representative present during any and all examinations, inspections and/or studies on the Property.  Buyer shall have the unconditional right, for any reason or no reason, to terminate this Agreement with respect to any Property by giving written notice thereof to Seller and the Escrow Agent prior to the expiration of the Due Diligence Period, in which event this Agreement shall become null and void as to such Property, Buyer shall receive a refund of the Earnest Money, and all rights, liabilities and obligations of the parties under this Agreement shall expire, except as otherwise expressly set forth herein. 
(c)Seller shall request Estoppel Certificates certified to the following: “AR Capital, LLC, the Approved Assignee listed on Exhibit A1 for the respective Property and their lender, successors and assigns” (as shown on Exhibit A1) and their Lender, successors and assigns (and simultaneously provide Buyer with a copy of such request) and a Waiver of Tenant’s right of first refusal.  It shall be a condition of Closing that Seller shall have obtained an estoppel certificate from O’Reilly and Advance in the applicable form attached hereto as Exhibit F (each a “Tenant Estoppel Certificate”), and Seller shall use good faith efforts to obtain the same.  Seller shall promptly deliver to Buyer photocopies or pdf files of the executed estoppel certificates when Seller receives the same.  If the Tenant Estoppel Certificate actually signed by Advance does not confirm Advance’s receipt of all certifications and/or documentation required under Section 10(b) of the Advance Auto Lease (or Section 2(b) of the Construction Provisions as referenced therein) in connection with the original construction of the Improvements, the Seller will request a letter from Advance in a form reasonably acceptable to Buyer confirming Advance’s receipt of all such items required under the Advance Auto Lease and Seller shall use good faith efforts to obtain the same.
(d)Buyer acknowledges that the Due Diligence Materials are being provided to Buyer solely as a courtesy, and that Seller makes no representations or warranties about the subject matter thereof except as otherwise expressly made herein.

7.Risk of Loss/Condemnation.  Upon an occurrence of a casualty, condemnation or taking with respect to any Property, Seller shall notify Buyer in writing of same.  Until Closing, the risk of loss or damage to the Property, except as otherwise expressly provided herein, shall be borne by Seller.  In the event all or any portion of any Property is damaged in any casualty or condemned or taken (or notice of any condemnation or taking is issued) such that any Tenant has a right of termination or abatement of rent under the Lease for such Property, then, Buyer may elect to terminate this Agreement by providing written notice of such termination to Seller within ten (10) business days after Buyer’s receipt of notice of such condemnation, taking or damage, upon which termination the Earnest Money shall be returned to the Buyer and neither party hereto shall have any further rights, obligations or liabilities under this Agreement with respect to such Property, except as otherwise expressly set forth herein.  With respect to any condemnation or taking (of any notice thereof), if Buyer does not elect to cancel this Agreement as aforesaid, there shall be no abatement of the Purchase Price and Seller shall assign to Buyer at the Closing the rights of Seller to the awards, if any, for the condemnation or taking, and Buyer shall be entitled to receive and keep all such awards.  With respect to a casualty, if Buyer does not elect to terminate this Agreement with respect to any such Property or does not have the right to terminate this Agreement as aforesaid, there shall be no abatement of the Purchase Price and Seller shall assign to Buyer at the Closing the rights of Seller, if any, to the proceeds under the existing insurance policies covering such Property with respect to such damage or destruction (or pay to Buyer any such proceeds received prior to Closing).

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8.Earnest Money Disbursement. The Earnest Money shall be held by Escrow Agent, in trust, and disposed of only in accordance with the following provisions:
(a)If the Closing occurs, Escrow Agent shall deliver the Earnest Money to, or upon the instructions of, Seller and Buyer on the Closing Date to be applied as part payment of the Purchase Price.  If for any reason the Closing does not occur, Escrow Agent shall deliver the Earnest Money to Seller or Buyer only upon receipt of a written demand therefor from such party, subject to the following provisions of this clause (a).  Subject to the last sentence of this clause (a), if for any reason the Closing does not occur and either party makes a written demand (the “Demand”) upon Escrow Agent for payment of the Earnest Money, Escrow Agent shall give written notice to the other party of the Demand within one business day after receipt of the Demand.  If Escrow Agent does not receive a written objection from the other party to the proposed payment within five (5) business days after the giving of such notice by Escrow Agent, Escrow Agent is hereby authorized to make the payment set forth in the Demand.  If Escrow Agent does receive such written objection within such period, Escrow Agent shall continue to hold such amount until otherwise directed by written instructions signed by Seller and Buyer or a final judgment of a court.  Notwithstanding the foregoing provisions of this clause (a), if Buyer delivers a notice to Escrow Agent and Seller stating that Buyer has terminated this Agreement on or prior to the expiration of the Due Diligence Period, then Escrow Agent shall immediately return the Earnest Money to Buyer without the necessity of delivering any notice to, or receiving any notice from Seller.
(b)The parties acknowledge that Escrow Agent is acting solely as a stakeholder at their request and for their convenience, that Escrow Agent shall not be deemed to be the agent of either of the parties, and that Escrow Agent shall not be liable to either of the parties for any action or omission on its part taken or made in good faith, and not in disregard of this Agreement, but shall be liable for its negligent acts and for any liabilities (including reasonable attorneys’ fees, expenses and disbursements) incurred by Seller or Buyer resulting from Escrow Agent’s mistake of law respecting Escrow Agent scope or nature of its duties.  Seller and Buyer shall jointly and severally indemnify and hold Escrow Agent harmless from and against all liabilities (including reasonable attorneys’ fees, expenses and disbursements) incurred in connection with the performance of Escrow Agent’s duties hereunder, except with respect to actions or omissions taken or made by Escrow Agent in bad faith, in disregard of this Agreement or involving negligence on the part of Escrow Agent.  Escrow Agent has executed this Agreement in the place indicated on the signature page hereof in order to confirm that Escrow Agent shall hold the Earnest Money in escrow and shall disburse the Earnest Money pursuant to the provisions of this Section 8.

9.Default.
(a)In the event that Seller is ready, willing and able to close in accordance with the terms and provisions hereof, and Buyer defaults in any of its obligations undertaken in this Agreement, Seller shall be entitled to, as its sole and exclusive remedy to either:  (i) if Buyer is willing to proceed to Closing, waive such default and proceed to Closing in accordance with the terms and provisions hereof; or (ii) declare this Agreement to be terminated, and Seller shall be entitled to immediately receive all of the Earnest Money as liquidated damages as and for Seller’s sole remedy.  Upon such termination, neither Buyer nor Seller shall have any further rights, obligations or liabilities hereunder, except as otherwise expressly provided herein.  Seller and Buyer agree that (a) actual damages due to Buyer’s default hereunder would be difficult and inconvenient to ascertain and that such amount is not a penalty and is fair and reasonable in light of all relevant circumstances, (b) the amount specified as liquidated damages is not disproportionate to the damages that would be suffered and the costs that would be incurred by Seller as a result of having withdrawn the Property from the market, and (c) Buyer desires to limit its liability under this Agreement to the amount of the Earnest Money paid in the event Buyer fails to complete Closing.  Seller hereby waives any right to recover the balance of the Purchase Price, or any part thereof, and the right to pursue any other remedy permitted at law or in equity against Buyer.  In no event under this Section or otherwise shall Buyer be liable to Seller for any punitive, speculative or consequential damages.
(b)In the event of a default in the obligations herein taken by Seller, with respect to any or all of the Properties, Buyer may, as its sole and exclusive remedy, either:  (i) waive any unsatisfied conditions and proceed to Closing in accordance with the terms and provisions hereof; or (ii) terminate this Agreement by delivering written notice thereof to Seller no later than Closing, upon which termination the Earnest Money shall be refunded to Buyer, Seller shall pay to Buyer all of the out-of-pocket costs and expenses (not to exceed $15,000.00) incurred by Buyer in connection with this Agreement, which return and payment shall operate to terminate this Agreement and release Seller and Buyer from any and all liability hereunder, except those which are specifically stated herein to survive any termination hereof; or (iii) enforce specific performance of Seller’s obligations hereunder.

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10.Closing. The Closing shall consist of the execution and delivery of documents by Seller and Buyer, with respect to each Property as set forth below, and delivery by Buyer to Seller of the Purchase Price in accordance with the terms of this Agreement.  Each of Fairmont and DJSMD shall deliver to Escrow Agent for the benefit of Buyer at Closing the following executed documents for the Fairmont Property and the Fayetteville Property, respectively:
(a)A Special Warranty Deed in the form attached hereto as Exhibit B;
(b)An Assignment and Assumption of Lease and Security Deposits, in the form attached hereto as Exhibit C; 
(c)A Bill of Sale for the personal property, if any, in the form attached hereto as Exhibit D;
(d)An Assignment of Permits, Licenses and Warranties in the form of Exhibit E;
(e)Original Tenant Estoppel Certificates dated no earlier than 45 days prior to the date of Closing (and, if required pursuant to Section 6(c) of this Agreement, a letter from the Advance confirming Advance’s receipt of all certifications and/or documentation required under the Lease in connection with the construction of the Improvements).  In addition, the business terms of the Tenant Estoppel Certificates must be in accordance with and not contradict the Leases. If the Leases and any amendments, bearing the original signatures of the landlord and tenant thereunder have not been delivered to Buyer previously, a copy thereof confirming that the copy is true, correct and complete shall be attached to the Tenant Estoppel Certificates;
(f)A settlement statement setting forth the Purchase Price, all prorations and other adjustments to be made pursuant to the terms hereof, and the funds required for Closing as contemplated hereunder;
(g)All transfer tax statements, declarations and filings as may be necessary or appropriate for purposes of recordation of the deed; 
(h)Certificates of Existence and corporate resolutions or member or partner consents, as applicable, and such other documents as reasonably requested by Escrow Agent;
(i)Originals of the warranties set forth on Exhibit J, the general contractor warranty in the form attached hereto as Exhibit K for the Fairmont Property, and any additional warranties required by the Leases, re-issued at Seller’s expense, to Buyer or Tenant, as requested by Buyer;
(j)A certificate pursuant to Section 1445 of the Internal Revenue Code of 1986, as amended, or the regulations issued pursuant thereto, certifying the non-foreign status of Seller;
(k)An Owner’s title affidavit as to mechanics’ liens and possession, substantially in the forms attached hereto as Exhibit H-1 and H-2;
(l)Letters to Advance and O’Reilly in form of Exhibit I attached hereto; 
(m)With respect to the Fairmont Property, a copy of the Punch-List; 
(n)With respect to the Fairmont Property, an architect’s certificate certifying that the Fairmont Property has been constructed in accordance with the approved plans and specifications;
(o)A certificate of insurance or other evidence reasonably satisfactory to Buyer memorializing and confirming that Tenant is then maintaining policies of insurance of the types and in the amounts required by the Lease; and
(p)Such other instruments as are reasonably required by Escrow Agent to close the escrow and consummate the purchase of the Property in accordance with the terms hereof.
At Closing, Buyer shall cause the Purchase Price to be delivered to Seller and shall execute and deliver execution counterparts of the closing documents referenced in clauses (a) through (d) and (g) above.  Buyer shall have the right to advance the Closing upon five (5) days’ prior written notice to Seller; provided that all conditions precedent to both Buyer’s and Seller’s respective obligations to proceed with Closing under this Agreement have been satisfied (or, if there are conditions to a party’s obligation to proceed with Closing that remain unsatisfied, such conditions have been waived by such party).  The Closing shall be held through the mail by delivery of the closing documents to the Escrow Agent on or prior to the Closing or such other place or manner as the parties hereto may mutually agree.  
11.Representations by Seller. For the purpose of inducing Buyer to enter into this Agreement and to consummate the sale and purchase of the Property in accordance herewith, Seller makes the following representations and warranties to Buyer as of the date hereof and as of the Closing Date with respect to the Property:
(a)Seller is duly organized (or formed), validly existing and in good standing under the laws of its state of organization, and to the extent required by law, the State in which the Property is located.  Seller has the power and authority to execute and deliver this Agreement and all closing documents to be executed by Seller, and to perform all of Seller’s obligations hereunder and thereunder.  Neither the execution and delivery of this Agreement 

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and all closing documents to be executed by Seller, nor the performance of the obligations of Seller hereunder or thereunder will result in the violation of any law or any provision of the organizational documents of Seller or will conflict with any order or decree of any court or governmental instrumentality of any nature by which Seller is bound;
(b)Seller has not received any written notice of any current or pending litigation, condemnation proceeding or tax appeals affecting Seller or the Property and Seller does not have any knowledge of any pending litigation or tax appeals against Seller or the Property; Seller has not initiated, nor is Seller participating in, any action for a change or modification in the current subdivision, site plan, zoning or other land use permits for the Property; 
(c)Seller has not entered into any contracts, subcontracts or agreements affecting the Property which will be binding upon Buyer after the Closing other than the Lease;
(d)Except for violations cured or remedied on or before the date hereof, Seller has not received any written notice from (or delivered any notice to) any governmental authority regarding any violation of any law applicable to the Property and Seller does not have knowledge of any such violations;
(e)With respect to the Leases:  (i) the Leases forwarded to Buyer under Section 6(b)(i) are true, correct and complete copies of the Leases; (ii) to Seller’s knowledge, the Leases are in full force and effect and, to Seller’s knowledge without investigation, there is no default thereunder; (iii) no brokerage or leasing commissions or other compensation is or will be due or payable to any person, firm, corporation or other entity with respect to or on account of the current term of the Leases or any extension or renewal thereof; (iv) Seller has no outstanding obligation to provide Tenant with an allowance to construct, or to construct at its own expense, any tenant improvements; and (v) the rent for each Property is as set forth on Exhibit A2;
(f)There are no occupancy rights, leases or tenancies affecting the Property other than the Lease.  Neither this Agreement nor the consummation of the transactions contemplated hereby is subject to any first right of refusal or other purchase right in favor of any other person or entity; and apart from this Agreement, Seller has not entered into any written agreements for the purchase or sale of the Property, or any interest therein which has not been terminated;
(g)Seller has not received any written notice from (nor delivered any notice to) any federal, state, county, municipal or other governmental department, agency or authority concerning any petroleum product or other hazardous substance discharge or seepage;  
(h)Exhibit J attached hereto is a true, correct and complete listing of all warranties in effect for the Property (the “Warranties”).
The representations and warranties of Seller shall survive Closing for a period of one (1) year.  In the event that Seller becomes aware that any representation contained in this Section 11 is no longer true, then Seller shall immediately give Buyer notice of such inaccurate representation.  
12.Representations by Buyer.  Buyer represents and warrants to, and covenants with, Seller as follows:
(a)Buyer is duly formed, validly existing and in good standing under the laws of Delaware, is authorized to consummate the transaction set forth herein and fulfill all of its obligations hereunder and under all closing documents to be executed by Buyer, and has all necessary power to execute and deliver this Agreement and all closing documents to be executed by Buyer, and to perform all of Buyer’s obligations hereunder and thereunder.  This Agreement and all closing documents to be executed by Buyer have been duly authorized by all requisite corporate or other required action on the part of Buyer and are the valid and legally binding obligation of Buyer, enforceable in accordance with their respective terms.  Neither the execution and delivery of this Agreement and all closing documents to be executed by Buyer, nor the performance of the obligations of Buyer hereunder or thereunder will result in the violation of any law or any provision of the organizational documents of Buyer or will conflict with any order or decree of any court or governmental instrumentality of any nature by which Buyer is bound.
The representations and warranties of Buyer shall survive Closing for a period of one (1) year.
13.Conditions Precedent to Buyer’s Obligations. Buyer’s obligation to pay the Purchase Price, and to accept title to the Property, shall be subject to compliance by Seller with the following conditions precedent for each Property on and as of the date of Closing:
(a)Seller shall deliver to Buyer on or before the Closing the items set forth in Section 10 above;
(b)Tenant shall be in possession of the premises demised under the Leases, open for business to the public and paying full and unabated rent under the Leases and Tenant shall not have assigned or sublet any of the Property;

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(c)The representations and warranties of Seller contained in this Agreement shall have been true when made and shall be true in all material respects at and as of the date of Closing as if such representations and warranties were made at and as of the Closing, and Seller shall have performed and complied in all material respects with all covenants, agreements and conditions required by this Agreement to be performed or complied with by Seller prior to or at the Closing; 
(d)Seller shall have delivered to Buyer a written waiver by any party of any right of first refusal, right of first offer or other purchase option that Tenant or any other such party has pursuant to the Leases or otherwise to purchase the Property from Seller; and  
(e)Seller shall have made all contributions, payments and/or reimbursements and completed any and all work required by any governmental authority in connection with the construction and development of the Property, including, without limitation, as required by any variance or site plan approval.
In the event that the foregoing conditions precedent have not been satisfied as of Closing, Buyer shall have the rights and remedies set forth in Section 9(b) of this Agreement.
14.Conditions Precedent to Seller’s Obligation. Seller’s obligation to deliver title to the Property shall be subject to compliance by Buyer with the following conditions precedent on and as of the date of Closing:
(a)Buyer shall deliver to Escrow Agent on the Closing Date the remainder of the Purchase Price, subject to adjustment of such amount pursuant to Section 2 hereof; and
(b)The representations and warranties of Buyer contained in this Agreement shall have been true when made and shall be true in all material respects at and as of the date of Closing as if such representations and warranties were made at and as of the Closing, and Buyer shall have performed and complied in all material respects with all covenants, agreements and conditions required by this Agreement to be performed or complied with by Buyer prior to or at the Closing.

15.Notices. Unless otherwise provided herein, all notices and other communications which may be or are required to be given or made by any party to the other in connection herewith shall be in writing and shall be deemed to have been properly given and received on the date: (i) delivered by facsimile transmission or by electronic mail (e.g. email), (ii) delivered in person, (iii) deposited in the United States mail, registered or certified, return receipt requested, or (iv) deposited with a nationally recognized overnight courier, to the addresses set out in Section 1, or at such other addresses as specified by written notice delivered in accordance herewith.  Notwithstanding the foregoing, Seller and Buyer agree that notice may be given on behalf of each party by the counsel for each party and notice by such counsel in accordance with this Section 15 shall constitute notice under this Agreement. 

16.Seller Covenants. Seller agrees that it shall not, without Buyer’s prior written consent, which, after the expiration of the Due Diligence Period may be withheld in Buyer’s sole discretion:  (i) amend the Leases in any manner, nor enter into any new lease, license agreement or other occupancy agreement with respect to any Property; (ii) consent to an assignment of the Leases or a sublease of the premises demised thereunder or a termination or surrender thereof (except to the extent required under the terms of any Lease); (iii) terminate the Leases nor release any guarantor of or security for the Leases unless required by the express terms of the Leases; and/or (iv) cause, permit or consent to an alteration of the premises demised thereunder (unless such consent is non-discretionary).

17.Intentionally Omitted. 

18.Performance on Business Days.  A “business day” is a day which is not a Saturday, Sunday or legal holiday recognized by the Federal Government.  Furthermore, if any date upon which or by which action is required under this Agreement is not a business day, then the date for such action shall be extended to the first day that is after such date and is a business day.  When calculating the period of time before which, within which or following which any act is to be done or step taken pursuant to this Agreement, the date that is the reference date in calculating such period shall be excluded.  If the last day of such period is a non-business day, the period in question shall end on the next succeeding business day.

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19.Entire Agreement.  This Agreement constitutes the sole and entire agreement among the parties hereto and no modification of this Agreement shall be binding unless in writing and signed by all parties hereto.   No prior agreement or understanding pertaining to the subject matter hereof (including, without limitation, any letter of intent executed prior to this Agreement) shall be valid or of any force or effect from and after the date hereof.

20.Severability.  If any provision of this Agreement, or the application thereof to any person or circumstance, shall be invalid or unenforceable, at any time or to any extent, then the remainder of this Agreement, or the application of such provision to persons or circumstances other than those as to which it is invalid or unenforceable, shall not be affected thereby.  Each provision of this Agreement shall be valid and enforced to the fullest extent permitted by law.

21.No Representations or Warranties. Buyer acknowledges and agrees that, except for the representations and warranties of Seller set forth in this Agreement, to the maximum extent permitted by law, THE SALE OF THE PROPERTY SHALL BE MADE ON AN “AS IS, WHERE IS” CONDITION AND BASIS WITH ALL FAULTS, KNOWN OR UNKNOWN, PATENT, LATENT, OR OTHERWISE.  Buyer acknowledges and agrees that, except as otherwise set forth in this Agreement, Seller have not made, does not make, and specifically negates and disclaims any representations, warranties, promises, covenants, agreements, or guaranties of any kind, character, or nature whatsoever, whether express or implied, oral or written, past, present, or future, of, as to, concerning or with respect to:  (a) the value, nature, quality, or condition of the Property or any improvements thereon (including, without limitation, water, environmental, flora, fauna, soil, and geology); (b) the income to be derived from the Property; (c) the suitability of the Property for any and all activities and uses which Buyer may conduct thereon regardless of whether disclosed to Seller; (d) the compliance of or by the Property or their operation with any laws, rules, ordinances, or regulations of any applicable governmental authority or body; (e) the habitability, merchantability, marketability, profitability, or fitness for a particular purpose of the Property; (f) the manner or quality of the construction or materials incorporated into the Property; (g) the manner, quality, state of repair or lack of repair of the Property; (h) the status of the Leases or any Tenant’s compliance with the terms thereof or of any legal requirement related to the operation of the Property; and (i) any other matter of any nature whatsoever with respect to the Property.  Other than the representations and warranties set forth in this Agreement, Buyer has not relied upon any other representation or warranty made by Seller, or any of their respective officers, directors, employees, agents or representatives in entering into this Agreement to purchase the Property.  Buyer further acknowledges and agrees that, having been given the opportunity to inspect the Property, Buyer is relying on its own investigation of the Property and not on any information provided or to be provided by Seller or at Closing, except for the representations and warranties set forth in this Agreement and any covenants, representations, and warranties related to title for the Property set forth in the Deeds.  Except as otherwise set forth in the representations and warranties in this Agreement, Seller are not liable or bound in any manner by any statements, representations, or information pertaining to the Property or the operation thereof, furnished by Seller, any real estate broker, agent, employee, servant, or other person.  It is understood and agreed that the Purchase Price has been established by prior negotiation to reflect that all of the Property are sold by Seller and purchased by Buyer subject to the foregoing.  The provisions of this Section shall survive Closing or the termination of this Agreement.

22.Applicable Law. This Agreement shall be construed under the laws of the State of North Carolina, without giving effect to any state's conflict of laws principles.  The parties agree that the state courts of North Carolina sitting in Cumberland County shall be the exclusive venue for any action or proceeding between the parties with respect to this Agreement.

23.Tax-Deferred Exchange. Buyer and Seller respectively acknowledge that the purchase and sale of the Property contemplated hereby may be part of a separate exchange (an “Exchange”) being made by each party pursuant to Section 1031 of the Internal Revenue Code of 1986, as amended, and the regulations promulgated with respect thereto.  In the event that either party (the “Exchanging Party”) desires to effectuate such an exchange, then the other party (the “Non-Exchanging Party”) agrees to cooperate fully with the Exchanging Party in order that the Exchanging Party may effectuate such an exchange; provided, however, that with respect to such Exchange (a) all additional costs, fees and expenses related thereto shall be the sole responsibility of, and borne by, the Exchanging Party; (b) the Non-Exchanging Party shall incur no additional liability as a result of such exchange; (c) the contemplated 

11

exchange shall not delay any of the time periods or other obligations of the Exchanging Party hereby, and without limiting the foregoing, the scheduled date for Closing shall not be delayed or adversely affected by reason of the Exchange; (d) the accomplishment of the Exchange shall not be a condition precedent or condition subsequent to the Exchanging Party's obligations under the Agreement; and (e) the Non-Exchanging Party shall not be required to hold title to any land other than the Property for purposes of the Exchange.  The Exchanging Party agrees to defend, indemnify and hold the Non-Exchanging Party harmless from any and all liability, damage or cost, including, without limitation, reasonable attorney's fees that may result from Non-Exchanging Party's cooperation with the Exchange. The Non-Exchanging Party shall not, by reason of the Exchange, (i) have its rights under this Agreement, including, without limitation, any representations, warranties and covenants made by the Exchanging Party in this Agreement (including but not limited to any warranties of title, which, if Seller is the Exchanging Party, shall remain warranties of Seller), or in any of the closing documents (including but not limited to any warranties of title, which, if Seller is the Exchanging Party, shall remain warranties of Seller) contemplated hereby, adversely affected or diminished in any manner, or (ii) be responsible for compliance with or deemed to have warranted to the Exchanging Party that the Exchange complies with Section 1031 of the Code.

24.Broker’s Commissions. Buyer and Seller each hereby represent that, except for Broker, there are no other brokers involved or that have a right to proceeds in this transaction.  Seller shall be responsible for payment of commissions to Broker pursuant to a separate written agreement executed by Seller.  Seller and Buyer each hereby agree to indemnify and hold the other harmless from all loss, cost, damage or expense (including reasonable attorneys' fees at both trial and appellate levels) incurred by the other as a result of any claim arising out of the acts of the indemnifying party (or others on its behalf) for a commission, finder's fee or similar compensation made by any broker, finder or any party who claims to have dealt with such party (except that Buyer shall have no obligations hereunder with respect to any claim by Broker).  The representations, warranties and indemnity obligations contained in this section shall survive the Closing or the earlier termination of this Agreement.

25.Assignment.  Buyer is entering into this Agreement for and on behalf of related special purpose entities as set forth on Exhibit A1 (each an “Approved Assignee”) and intends to assign each respective Approved Assignee its rights hereunder prior to Closing; provided, no such assignment shall relieve Buyer of any obligation hereunder.  The notice address for the Approved Assignee is 106 York Road, Jenkintown PA 19046.  Except for an assignment by Buyer to an Approved Assignee, neither party may assign its rights hereunder without the prior written consent of the other party.

26.Attorneys’ Fees.  In any action between Buyer and Seller as a result of failure to perform or a default under this Agreement, the prevailing party shall be entitled to recover from the other party, and the other party shall pay to the prevailing party, the prevailing party’s attorneys’ fees and disbursements and court costs incurred in such action.

27.Time of the Essence.  Time is of the essence with respect to each of Buyer’s and Seller’s obligations hereunder.

28.Counterparts.  This Agreement may be executed in one or more counterparts, all of which shall be considered one and the same agreement, and shall become a binding agreement when one or more counterparts have been signed by each of the parties and delivered to the other party.  Signatures on this Agreement which are transmitted by electronically shall be valid for all purposes, however any party shall deliver an original signature on this Agreement to the other party upon request.

29.Anti-Terrorism.  Neither Buyer or Seller, nor any of their affiliates, are in violation of any Anti-Terrorism Law (as hereinafter defined) or engages in or conspires to engage in any transaction that evades or avoids, or has the purpose of evading or avoiding, or attempts to violate, any of the prohibitions set forth in any Anti-Terrorism Law. “Anti-Terrorism Laws” shall mean any laws relating to terrorism or money laundering, including: Executive Order No. 13224; the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, Public Law 107-56, as the same has been, or may hereafter be, renewed, extended, amended or replaced; the applicable laws comprising or implementing the Bank Secrecy Act; and the applicable laws 

12

administered by the United States Treasury Department’s Office of Foreign Asset Control (as any of the foregoing may from time to time be amended, renewed, extended, or replaced).

[SIGNATURES APPEAR ON THE FOLLOWING PAGES]
    

13

SEPARATE SIGNATURE PAGE
AGREEMENT FOR PURCHASE AND SALE OF REAL PROPERTY

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the Effective Date.  

	
							
	SELLER:
	 
	BUYER:

	FAIRMONT PROPERTIES, LLC
	 
	AR CAPITAL, LLC

	By:  Turtle Creek (Phase I), LLC 
	 
	 
	 

	 
	its Member Manager
	 
	 
	 

	 
	 
	 
	 
	 

	By:
	/s/ H. David Swain
	 
	By:
	/s/ Edward M. Weil

	 
	Name:
	H. David Swain
	 
	 
	Name:
	Edward M. Weil

	 
	Title:
	Manager
	 
	 
	Title:
	President

	 
	Date:
	January 2, 2014
	 
	 
	Date:
	January 2, 2014

	
							
	SELLER:
	 
	 

	DJSMD, LLC
	 
	 

	By:  Turtle Creek (Phase I), LLC 
	 
	 
	 

	 
	its Member Manager
	 
	 
	 

	 
	 
	 
	 
	 

	By:
	/s/ H. David Swain
	 
	 
	 

	 
	Name:
	H. David Swain
	 
	 
	 
	 

	 
	Title:
	Manager
	 
	 
	 
	 

	 
	Date:
	January 2, 2014
	 
	 
	 
	 

THE UNDERSIGNED HEREBY ACKNOWLEDGES AND AGREES TO BE BOUND BY THE TERMS OF THIS AGREEMENT RELATING TO ESCROW AGENT AND THE DEPOSIT.
	
							
	ESCROW AGENT:
	 
	 

	STEWART TITLE GUARANTY
	 
	 

	 
	 
	 
	 
	 

	By:
	/s/ Danielle C. Howell
	 
	 
	 

	 
	Name:
	Danielle C. Howell
	 
	 
	 
	 

	 
	Title:
	Assistant Vice President
	 
	 
	 
	 

	 
	Date:
	January 7, 2014
	 
	 
	 
	 

14

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