Document:

EX 10.9 ARCT IV 9.30.2012 10-Q

Exhibit 10.9
FIRST AMENDMENT TO ASSIGNMENT AND ASSUMPTION OF 
AMENDED AND RESTATED AGREEMENT FOR PURCHASE AND SALE

THIS FIRST AMENDMENT TO ASSIGNMENT AND ASSUMPTION OF AMENDED AND RESTATED AGREEMENT OF PURCHASE AND SALE (this "First Amendment") is made and entered into as of July 26, 2012 (the "Effective Date") by and between Ladder Capital Finance LLC, a Delaware limited liability company ("Assignor"), AR Capital, LLC, a Delaware limited liability company ("Assignee"), and Commonwealth Land Title Insurance Corporation (the "Title Company").
WHEREAS, Assignor and Assignee entered into that certain Assignment and Assumption of Amended and Restated Agreement for Purchase and Sale, dated July 19, 2012 (the "Assignment and Assumption Agreement"), wherein Assignor assigned to Assignee all of its right rights, title and interests under that certain Amended and Restated Agreement of Purchase and Sale, dated July 2, 2012 (the "Purchase Agreement") for the purchase of all of the real property described in Section 1(h) thereof (individually, a "Property", collectively, the "Properties"), with RSBR Investments, LLC, RBA Investments, LLC and Overland Properties, LLC ("Seller"), and Assignee accepted such assignment and assumed the obligations of Assignor, as buyer, thereunder.
WHEREAS, Assignor and Assignee mutually desire to modify the Assignment and Assumption Agreement as hereinafter set forth.
WHEREAS, the Title Company hereby desires to become a party to this First Amendment for the limited purposes hereinafter set forth.
NOWTHEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Assignor and Assignee hereby agree as follows:
		
	1.
	Recitals; Capitalized Terms. The above recitals are incorporated herein by reference. Any capitalized terms used herein but not defined shall have the meanings ascribed to them in the Assignment and Assumption Agreement.

		
	2.
	Modifications.

(a)Assignee and the Title Company shall endeavor to provide Assignor with prior notice of the date upon which a closing on a Property will occur, and the Title Company shall notify Assignor no later than two (2) days after the date upon which a closing on a Property occurred under the Purchase Agreement, which notice shall include the address, the Purchase Price, the Assignment Fee and the date of the Closing for the applicable Property.
(b)Assignee and the Title Company shall cause the closing statement for each closing on a Property to include a line item for the payment of the Assignment Fee to Assignor by Assignee. The amount of such Assignment Fee shall be calculated and provided to the Title Company by Assignee.

(c) The Title Company shall provide Assignor with a copy of the settlement statement applicable to a closing on a Property on the date any such closing occurs.

		
	3.
	Ratification. Except as amended by this First Amendment, the Assignment and Assumption Agreement shall remain in full force and effect and all of the provisions thereof are hereby ratified and confirmed in all respects.

		
	4.
	Counterparts. This First Amendment may be executed in one or more counterparts, each 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 First Amendment which are transmitted by electronically shall be valid for all purposes, however any party shall deliver an original signature on this First Amendment to the other party upon request.

IN WITNESS WHEREOF, Assignor and Assignee have caused this First Amendment to be executed as of the date and year first set forth above.
ASSIGNOR:
Ladder Capital Finance LLC, a Delaware limited liability company

By: /s/ David M. Traitel
Name: David M. Traitel
Title: Managing Director

ASSIGNEE:
AR CAPITAL, LLC, a Delaware limited liability company

By: /s/ Edward M. Weil, Jr.
Name: Edward M. Weil, Jr.
Title: President

TITLE COMPANY:
Commonwealth Land Title Insurance Corporation
By:    
Name: Title:

(c) The Title Company shall provide Assignor with a copy of the settlement statement applicable to a closing on a Property on the date any such closing occurs.

		
	3.
	Ratification. Except as amended' by this First Amendment, the Assignment and Assumption Agreement shall remain in full force an effect and all of the provisions thereof are hereby ratified and confirmed in all respects.i.

		
	4.
	Counterparts. This First Amendment may be executed in one or more counterparts, each 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 First Amendment which are transmitted by electronically shall be valid for all purposes, however any party shall deliver an original signature on this First Amendment to the other party upon request.

IN WITNESS WHEREOF, Assignor and Assignee have caused this First Amendment to be executed as of the date and year first set forth above.
ASSIGNOR:
Ladder Capital Finance LLC, a Delaware limited liability company
By:     
Name: Title:
ASSIGNEE:
AR CAPITAL, LLC, a Delaware limited liability company
By:    
Name: Title:

TITLE COMPANY:
COMMONWEALTH LAND TITLE INSURANCE CORPORATION
By:    
Name: Title:EX 10.10 ARCT IV 9.30.2012 10-Q

Exhibit 10.10
FIRST AMENDMENT TO
AMENDED AND RESTATED AGREEMENT FOR PURCHASE AND SALE
THIS FIRST AMENDMENT TO AGREEMENT FOR PURCHASE AND SALE
(this "Amendment"), is made this August 21, 2012, by and among, RSBR TNVESTEMENTS, LLC, RBA INVESTMENTS, LLC and OVERLAND PROPERTIES, LLC, each a Missouri limited liability company ("Seller"), and AR CAPITAL, LLC, a Delaware limited liability company ("Buyer").
WHEREAS, Ladder Capital Finance, LLC ("Ladder") and Seller entered into that certain Agreement for Purchase and Sale of Real Property, dated July 19, 2012 the "Agreement"), with regard to the Properties, more particularly described in the Agreement.
WHEREAS, Ladder assigned its interest to, and obligations under, the Agreement to Buyer pursuant to that certain Assignment and Assumption of Amended and Restated Agreement for Purchase and Sale, dated July 19, 2012, as amended by First Amendment to Assignment and Assumption of Amended and Restated Agreement for Purchase and Sale dated as of July 26, 2012 (the "Assignment"), by and between Ladder and Buyer.
WHEREAS, Buyer and Seller wish to amend the Agreement as provided for herein.
NOW, THEREFORE, in consideration of the mutual promise contained herein and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereby agree that the Amendment shall be amended as follows:
1. New Escrow Agent. Notwithstanding anything in the Agreement to the contrary, Buyer and Seller hereby agree that the Escrow Agent shall be Chicago Title Insurance Company, whose address is Suite 1325, 1515 Market Street, Philadelphia, PA 191021930, Attention: Edwin G. Ditlow, Telephone: 215-875-4184; Telecopy: 215-732-1203; E-mail: ditlowegett.com. All references to Escrow Agent in the Agreement shall be deemed to be references to Chicago Title Insurance Company. Notwithstanding anything in the Agreement to the contrary, Seller shall be responsible for all of the costs and expenses of Commonwealth Title Land Insurance Company incurred with respect to the Agreement. All costs and expenses of the Escrow Agent shall otherwise be apportioned as set forth in the Agreement and paid at Closing. Seller and Buyer agree to cause Commonwealth Title Land Insurance Company to remit the Earnest Money to Chicago Title Insurance Company as soon as possible after the execution of this Amendment.
2 Miscellaneous. Except as expressly modified hereby, the terms of the Agreement as previously amended, shall remain in full force and effect as written. Any capitalized term used in this Agreement and not otherwise defined herein, shall have the meaning ascribed to such term in the Agreement. This Amendment may be executed 

in any number of counterparts, each of which shall be deemed an original and all of which, when taken together shall constitute on agreement.

Signature appear on following pages.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the clay and year first set forth above.

SELLER: 
RSBR INVESTMENTS, LLC, a Missouri limited liability company
By: /s/ Rod Hamby
Name: Rod Hamby
Title: Manager

RBA INVESTMENTS, LLC, a Missouri limited liability company
By: /s/ Rod Hamby
Name: Rod Hamby
Title: Manager
OVERLAND PROPERTIES, LLC, a Missouri limited liability company
By: /s/ Rod Hamby
Name: Rod Hamby
Title: Manager
BUYER:
AR CAPITAL, LLC , a Delaware limited liability company

                    
By:/s/ Edward M. Weil, Jr.
Name: Edward M. Weil, Jr.
Title: President
JOINDER AND CONSENT OF ESCROW AGENT:    
An original, fully executed copy of this Agreement, together with the first installment of the Earnest Money, has been received by Escrow Agent this 3rd day of July, 2012, and by execution hereof Escrow Agent covenants and agrees to be bound by the terms of this Agreement applicable to Escrow Agent. 

                                                                               Escrow Agent:
                                                                               COMMONWEALH     TITLE LAND INSURANCE COMPANY
         By: 
         Name: 
        Title:EX 10.11 ARCT IV 9.30.2012 10-Q

Exhibit 10.11

AGREEMENT FOR PURCHASE AND SALE OF REAL PROPERTY
CVS PHARMACY: NEW CASTLE, PENNSYLVANIA

THIS AGREEMENT (“Agreement”) is made and entered into as of the Effective Date by and between ARC CVNCTPA001, LLC, a Delaware limited liability company (“Buyer”), and 1803 WILMINGTON ROAD COMPANY, LLC, a Pennsylvania limited liability company (“Seller”).
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)     “Broker” shall mean Scott Sandelin of Marcus & Millichap, acting as Seller’s agent.
(b)    “Closing” shall mean the consummation of the transaction contemplated herein, which shall occur, subject to the extension set forth in Section 10 hereof, on September 28, 2012.  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 (or if both Buyer and Seller agree, to Buyer’s and/or Seller’s counsel) prior to the date of Closing.
(c)    “Due Diligence Period” shall mean the period beginning upon the Effective Date and extending until 11:59 PM EST on the date that is twenty five (25) days thereafter.    
(d)     “Earnest Money” shall mean One Hundred Fifty Four Thousand Five Hundred and NO/100 Dollars ($154,500.00).  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.  Seller and Buyer each shall pay one-half of all reasonable escrow fees charged by Escrow Agent. 
(e)      “Effective Date” This Agreement shall be signed by both Seller and Buyer.  The date that is the date of execution and delivery of this Agreement by both Seller and Buyer shall be the “Effective Date” of this Agreement.
(f)    “Escrow Agent” shall mean Chicago Title Insurance Company, Suite 1325, 1515 Market Street, Philadelphia, PA 19102-1930, Attention:  Edwin G. Ditlow, Telephone: 215-875-4184; Telecopy: 215-732-1203; E-Mail: ditlowE@ctt.com.   The parties agree that the Escrow Agent shall be responsible for (x) organizing the issuance of the

ARC PSA CVS – New Castle, PA 8/28/2012

Commitment and Title Policy, (y) preparation of the closing statement, and (z) collections and disbursement of the funds.
(g)    “Guarantor” shall mean CVS CORPORATION.
(h)    “Guaranty” shall mean that certain Guaranty of the Lease dated May 12, 1998 (the “Guaranty”) executed by Guarantor.
(i)    “Lease” shall mean that certain Lease dated as of May 11, 1998 (the “Lease”) between Seller, as landlord, and White Cross Stores, Inc. No. 14 as tenant (“Tenant”), as amended.
(j)    “Property” shall mean (1) that certain real property located at 1803 Wilmington Road in New Castle, Pennsylvania, being more particularly described on Exhibit A, attached hereto and incorporated herein (the “Real Property”) together with all buildings, facilities and other improvements located thereon (collectively, the “Improvements”); (1) all right, title and interest of Seller under the Lease and all security deposits (if any) that Seller is holding pursuant to the Lease; (1) all right, title and interest of Seller in all machinery, furniture, equipment and items of personal property of Seller attached or appurtenant to, located on or used in the ownership, use, operation or maintenance of the Property or the Improvements (collectively, the “Personalty”); (1) all right, title and interest of Seller, if any, to any unpaid award for (1) any taking or condemnation of the Property or any portion thereof, or (1) any damage to the Property or the Improvements by reason of a change of grade of any street or highway; (e) all easements, licenses, rights and appurtenances relating to any of the foregoing; and (f) all right, title and interest of Seller in and to any warranties, tradenames, logos (including any federal or state trademark or tradename registrations), or other identifying name or mark now used in connection with the Real Property and/or the Improvements, to the extent assignable, but expressly excluding any such property to the extent owned by Tenant (the “Intangible Property”).
(k)    “Purchase Price” shall mean Three Million One Hundred Twenty Five Thousand and NO/100 Dollars ($3,125,000.00).  The Purchase Price is based on a capitalization rate of 7.72% and an Annual Net Rent (hereinafter defined) of $241,278.72 per annum.  If the Annual Net Rent on the Closing Date is not the same, the Purchase Price shall be adjusted accordingly. 
(l)    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:  
Roger Miller
2601 Biscayne Blvd.
Miami, FL  33137
Tel. No.: (305) 576-6333 
Fax No.:  (305) 576-3717
Email: rmiller@millergp.com

And to:

Adam Lustig
Bilzin Sumberg Baena Price & Axelrod LLP
1450 Brickell Ave., 23rd Floor
Miami, FL  33131
Tel. No.:  (305) 375-6143
Fax.:  (305) 351-2235
Email:  alustig@bilzin.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
        
With hard copies and/or cds to:

James A. (Jim) Mezzanotte
AR Capital, LLC  
202 E Franklin Street
Monroe, NC  28112
Tel. No.: (212) 415-6570
Fax No.: (212) 415-6507
Email: jmezzanotte@arlcap.com

2.    Purchase and Sale of the Property.  Subject to the terms of this Agreement, Seller agrees to sell to Buyer, and Buyer agrees to purchase from Seller, the Property for the Purchase Price.  
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)    All real estate taxes, rollback taxes, personal property taxes, water and sewer use charges, and any other charges and assessments constituting a lien on the Property (collectively “Taxes and Assessments”) due and payable on or before the Closing Date shall be remitted to the collecting authorities or to the Escrow Agent by Seller or Tenant prior to or at Closing.  At Closing, Buyer shall receive a credit equal to the amount of Taxes and Assessments which Tenant has remitted to Seller pursuant to the Lease, and which relate to Taxes and Assessments due and payable after the Closing Date.
(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; provided, however, if the Closing Date shall occur within ten (10) days of the end of the month in which Closing occurs, Buyer and Seller agree that Buyer shall be credited with the following month’s rent at Closing and Seller shall be entitled to retain any rents received by Seller that are attributable to the month following the month in which the Closing Date occurs and Buyer agrees to the extent that it receives any rent attributable to such month which was adjusted at Closing, it will refund such amount to Seller as soon as reasonably possible.  After Closing, Buyer shall apply all rents collected by Buyer, first to such tenant’s monthly rental for the month in which the Closing occurred, then rent for the month in which such rent was paid and, then to arrearages in the order in which they were due.  Seller shall have the right to seek collection of any rents or other income applicable to any period before the Closing, but shall not be permitted to file an eviction action against Tenant. Any rent or other income received by either party after Closing which are owed to the other party shall be held in trust and promptly remitted to the other party.
(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)100% of all Owner’s Title Insurance policy premiums, including search costs and a survey endorsement, but excluding any other endorsements issued in connection with such policies other than endorsements that Seller elects to purchase to cover title issues, if any;

(ii)Transfer taxes and conveyance fees on the sale and transfer of the Property;

(iii) Broker’s commission payments (for both leasing and sales commissions earned), in accordance with Section 23 of this Agreement;

(iv) All fees relating to the granting, executing and recording of the Deed for the Property and for any 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)Title Insurance policy premiums for any Loan Policy of Title Insurance in connection with any loan obtained by Buyer, any endorsements thereto, and any endorsements issued in connection with the Owner's Title Insurance Policy, other than endorsements that Seller elects to purchase to cover title issues, if any, and other than a survey endorsement;

(ii)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

(iii)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.
5.    Title.  At Closing, Seller agrees to convey to Buyer fee simple marketable title to 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 or any monetary lien, or any deeds of trust, mortgage, or other loan documents secured by the Property (collectively, “Liens”).  Seller shall be required to cure or remove all Liens (by payment, bond deposit or indemnity acceptable to Escrow Agent).   Seller shall have no obligation to cure any Title Matter objected to, except for Liens, 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.  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 receipt of Seller’s notice, 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 matter not revealed in the Title Commitment is discovered by Buyer or by the Escrow Agent and is 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, Seller shall reimburse Buyer for all out of pocket costs and expenses incurred hereunder 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, to the extent not already provided to Buyer, copies of the following documents and materials pertaining to the Property to the extent within Seller’s possession or control: (i) a complete copy of all leases affecting the Property and 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 in connection with its construction; (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 commitments and policies relating to the Property; (v) a copy of the certificate of occupancy 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) a copy of each tenant sales reports received by Seller from Tenant for the previous twenty four (24) calendar months or if the Tenant has been operating for less than twenty-four (24) months, for the period of operation; (ix) 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; (x) all service contracts and insurance policies which affect the Property, if any; (xi) a copy of all warranties relating to the improvements constructed on the Property, including without limitation any roof warranties; and (xii) a written inventory of all items of personal property 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 reasonably obtainable by Seller or Seller’s counsel and not confidential or privileged, within three (3) business days following such 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, conducting soil tests, 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; 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 claims or damages to the extent resulting from the activities of Buyer on the Property, and Buyer shall repair any and all damage caused, in whole or in part, by Buyer and return the Property to its condition prior to such damage, 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 maintain or cause to be maintained a policy of comprehensive general liability insurance, with a combined single limit of not less than $1,000,000.00 per occurrence for bodily injury and property damage, insuring Buyer and Seller, as an additional insured, against any injuries or damages to persons or property that may result from or are related to: (x) Buyer's or Buyer's representatives' entry upon the Property; and (y) any investigations or other activities related thereto which are conducted on the Property.  Buyer shall provide Seller with a certificate of insurance as evidence of such insurance prior to any physical inspection of the Property.  Buyer shall have the unconditional right, for any reason or no reason, to terminate this Agreement by giving written notice thereof to Seller prior to the expiration of the Due Diligence Period, in which event this Agreement shall become null and void, 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 has provided the Due Diligence Materials to Buyer without recourse, representation or warranty and assumes no responsibility for the accuracy or completeness of any statement or other matter in the Due Diligence Materials, except as otherwise expressly set forth in this Agreement.  Buyer shall keep all Due Diligence Materials confidential, except for information that is or becomes generally available to the public.  Buyer will not make any disclosure of the Due Diligence Materials to any parties other than its partners, investors, lenders, accountants, agents, advisors and attorneys, and in so doing shall notify each recipient of the confidentiality obligations under this Section.  Upon any termination of this Agreement, Buyer shall promptly deliver to Seller all Due Diligence Materials and all copies thereof and copies of all third party reports obtained by Buyer in connection with its due diligence related to the Property.  The obligations in this Section as to delivery and confidentiality shall survive any termination of this Agreement but shall not survive the Closing.
(d)    Within two (2) business days following the Effective Date, Seller shall request an estoppel certificate certified to Buyer, its Lender, successors and assigns (and simultaneously provide Buyer with a copy of such request).  It shall be a condition of Closing that Seller shall have obtained an estoppel certificate from Tenant in substantially the form attached hereto as Exhibit F (the “Tenant Estoppel Certificate”).  Seller shall use good faith efforts to obtain an estoppel certificate from Tenant.
(e)    Seller shall use good faith efforts to obtain an estoppel certificate from Guarantor in a form reasonably acceptable to Guarantor, but obtaining an estoppel certificate from Guarantor shall not be a condition to Closing and the failure to obtain same shall not be a 

default by Seller under this Agreement.  Seller shall promptly deliver to Buyer photocopies or pdf files of the executed estoppel certificate[s] when Seller receives the same. 
(f)    Seller shall use good faith efforts to obtain subordination, non-disturbance and attornment agreement from Tenant in form and substance reasonably acceptable to Buyer and Buyer’s Lender, if applicable (the “SNDA”), but obtaining an SNDA shall not be a condition to Closing and the failure to obtain same shall not be a default by Seller under this Agreement.  Buyer shall be responsible for all costs and expenses in connection with obtaining the SNDA.  
(g)    Seller shall use good faith efforts to obtain estoppel certificates with respect to reciprocal easement agreements as may be reasonably requested by Buyer.
7.    Risk of Loss/Condemnation.  Upon an occurrence of a casualty, condemnation or taking, 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 the Property is damaged in any casualty or condemned or taken (or notice of any condemnation or taking is issued) so that:  (a) Tenant has a right of termination or abatement of rent under the Lease, or (b) with respect to any casualty, if the cost to repair such casualty would exceed five percent (5%) of the Purchase Price, or (c) with respect to any condemnation, any Improvements or access to the Property (on a permanent basis) or more than five percent (5%) of the Property is (or will be) condemned or taken, 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, 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 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 to the proceeds under Seller’s insurance policies covering such Property with respect to such damage or destruction (or pay to Buyer any such proceeds received prior to Closing) and pay to Buyer the amount of  any deductible with respect thereto, and Buyer shall be entitled to receive and keep any monies received from such insurance policies.
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 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 has received and 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 that Buyer is ready, willing and able to close in accordance with the terms and provisions hereof, and Seller defaults in any of its obligations undertaken in this Agreement, or in the event of the failure of a condition precedent set forth in Section 13 of this Agreement, with respect to the Property, 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; (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 incurred by Buyer in connection with this Agreement, but not to exceed $15,000, 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; (iii) enforce specific performance of Seller’s obligations hereunder; or (iv) by notice to Seller given on or before the Closing Date, extend the Closing Date for a period of up to thirty (30) days (the “Closing Extension Period”), and the “Closing Date” shall be moved to the last day of the Closing Extension Period.  If Buyer so extends the Closing Date, then Seller may, but shall not be obligated to, cause said conditions to be satisfied during the Closing Extension Period.  If Seller does not cause said conditions to be satisfied during the Closing Extension Period, then Buyer shall have the remedies set forth in Section 9(b) (i) through (iii) above except that the term “Closing” shall read “Extended Closing”.
Notwithstanding the foregoing, in the event of a willful or intentional default of Seller hereunder, Buyer shall, in addition to the foregoing remedies, be permitted to pursue any and all rights and remedies available to Buyer at law or in equity; provided, however, in no event shall Seller be liable to Buyer for any punitive, speculative or indirect consequential damages.
10.    Closing.  The Closing shall consist of the execution and delivery of documents by Seller and Buyer, as set forth below, and delivery by Buyer to Seller of the Purchase Price in accordance with the terms of this Agreement.  Seller shall deliver to Escrow Agent for the benefit of Buyer at Closing the following executed documents:
(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 Contracts, Permits, Licenses and Warranties in the form of Exhibit E;
(e)    An original Tenant Estoppel Certificate dated no earlier than 30 days prior to the date of Closing.  In addition, the business terms of the Tenant Estoppel Certificate must be in accordance with and not contradict the Lease. If the Lease 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;
(f)    An original Guarantor Estoppel Certificate dated no earlier than 30 days prior to the date of Closing if obtained by Seller.  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)    Good standing certificates 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 I and any additional warranties required by the Lease, 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 and other matters in customary form reasonably acceptable to Buyer and Escrow Agent;
(l)    An original SNDA fully executed and notarized by Tenant, if requested by Buyer and obtained by Seller.  Letter to Tenant in form of Exhibit H attached hereto; 
(m)    Lease Renewal (as defined below); and
(n)    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 instruct Escrow Agent to deliver the Earnest Money to Seller which shall be applied to the Purchase Price, shall deliver the balance of the Purchase Price to Seller, shall execute and deliver execution counterparts of the closing documents referenced in clauses (b) and (g) above,  and such other documents as reasonably requested by Escrow Agent.  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).  Buyer shall have a one time right to extend the Closing for up to fifteen (15) business days upon written notice to Seller to be received by Seller on or prior to the date scheduled for the Closing.  If Buyer timely exercises this right to extend, any document that Seller is obligated to provide that is “time sensitive” does not need to be provided again by Seller.  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:
(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 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)    Seller has fee simple title to the Property free and clear of all liens and encumbrances except for Permitted Exceptions and Seller is the sole owner of the entire lessor’s interest in the Lease.  The Property constitutes one or more separate tax parcels for purposes of ad valorem taxation;
(f)    With respect to the Lease:  (i) the Lease forwarded to Buyer under Section 6(b) is a true, correct and complete copy of the Lease; (ii) the Lease is in full force and effect and 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 Lease 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; (iv) Tenant has delivered Seller a Lease Renewal dated July 17, 2012 (the "Lease Renewal"), a copy of which is attached as Exhibit I,  pursuant to which Tenant exercised a five (5) year renewal option to commence on February 1, 2020 and

expire on January 31, 2025, upon the same terms, covenants and conditions contained in the Lease, except that minimum monthly rent shall be $20,106.56 per month from August 1, 2012 through January 31, 2025.  Seller agrees to execute the Lease Renewal at Closing; and (v) the total scheduled annual base rent (the “Annual Net Rent”) for the current term of the Lease will be $241,278.72, upon the full execution of the Lease Renewal;  
(g)    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;
(h)    The transactions contemplated hereby either (i) will not constitute a sale of all or substantially all the assets of Seller, or (ii) if such transaction does constitute a sale of all or substantially all the assets of any Seller, Seller shall provide to Buyer at Closing an excise tax lien waiver or such other reasonably obtainable instruments evidencing compliance with laws or payment of taxes to the extent required by the law of the relevant state, or an indemnification from a party reasonably acceptable to Buyer for any resulting liability with respect to the period prior to the Closing; and  
(i)    To Seller’s knowledge, except as set forth in the environmental reports previously delivered by Seller to Buyer, no hazardous substances have been generated, stored, released, or disposed of on or about the Property in violation of any law, rule or regulation applicable to the Property which regulates or controls matters relating to the environment or public health or safety (collectively, “Environmental Laws”).  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.  For purposes of this Subsection, “hazardous substances” shall mean any substance or material which is defined or deemed to be hazardous or toxic pursuant to any Environmental Laws.  To Seller’s knowledge, there are no underground storage tanks located on the Property. 
The representations and warranties of Seller shall survive Closing for a period of one (1) year.
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 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)    Buyer shall have received a valid and permanent final certificate of occupancy (or the equivalent thereof) for the Property which shall not contain any contingencies or require any additional work to be completed;
(c)    Tenant shall be in possession of the premises demised under the Lease, open for business to the public and paying full and unabated rent under the Leases and Tenant shall not have assigned or sublet the Property;
(d)    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; 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, each of Seller and Buyer shall have the right to extend the Closing Date for up to thirty (30) days.  In the event that neither Seller nor Buyer extends the Closing Date or Seller or Buyer extends the Closing Date but the foregoing conditions precedent have not been satisfied by the extended Closing Date, Buyer shall have the rights and remedies set forth in Section 9(b) of this Agreement.
14.    Conditions Precedent to Seller’s Obligations.  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:  (a) shall continue to operate and manage the Property in the same manner in which Seller has previously operated and managed the Property; (b) shall, subject to Section 7 hereof and subject to reasonable wear and tear, maintain the Property in the same (or better) condition as exists on the date hereof to the extent required under the Lease; and (c) 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 Lease in any manner, nor enter into any new lease, license agreement or other occupancy agreement with respect to the Property; (ii) consent to an assignment of the Lease or a sublease of the premises demised thereunder or a termination or surrender thereof; (iii) terminate the Lease nor release any guarantor of or security for the Lease unless required by the express terms of the Lease; and/or (iv) cause, permit or consent to an alteration of the premises demised thereunder (unless such consent is non-discretionary).  Seller shall promptly inform Buyer in writing of any material event adversely affecting the ownership, use, occupancy or maintenance of the Property, whether insured or not. 
17.    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.
18.    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.

19.    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
20.    No Representations or Warranties.  Buyer hereby acknowledges, understands and agrees that it has an opportunity to inspect the Property as set forth in Section 6 herein, and except as set forth in this Agreement, the Property shall be conveyed at Closing to Buyer in “as-is” condition with no representation or warranties whatsoever.  Except as expressly set forth in this Agreement, Buyer has not relied and will not rely on, and Seller has not made and is not liable for or bound by, any express or implied warranties, guarantees, statements, representations or information pertaining to the Property or relating thereto (including specifically, without limitation, the Due Diligence Materials) made or furnished by Seller, or any property manager, real estate broker, agent or third party representing or purporting to represent Seller, to whomever made or given, directly or indirectly, orally or in writing.  Buyer represents that it is a knowledgeable, experienced and sophisticated purchaser of real estate and that, except as expressly set forth in this Agreement, it is relying solely on its own expertise and that of Buyer’s consultants in purchasing the Property and shall make an independent verification of the accuracy of any documents and information provided by Seller.  Buyer will conduct such inspections and investigations of the Property as Buyer deems necessary, including, but not limited to, the physical and environmental conditions thereof, and shall rely upon same.  By failing to terminate this Agreement prior to the expiration of the Due Diligence Period, Buyer acknowledges that Seller has afforded Buyer a full opportunity to conduct such investigations of the Property as Buyer deemed necessary to satisfy itself as to the condition of the Property and the existence or non-existence or curative action to be taken with respect to any hazardous substances on or discharged from the Property, and will rely solely upon same and not upon any information provided by or on behalf of Seller or its agents or employees with respect thereto, other than such representations, warranties and covenants of Seller as are expressly set forth in this Agreement.  Upon Closing, Buyer shall assume the risk that adverse matters, including, but not limited to, adverse physical or construction defects or adverse environmental, health or safety conditions, may not have been revealed by Buyer’s inspections and investigations.
21.    Applicable Law.  This Agreement shall be construed under the laws of the State or Commonwealth in which the Property is located, without giving effect to any state's conflict of laws principles.
22.    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 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.
23.    Broker’s Commissions.  Buyer and Seller each hereby represent that, except for the Broker listed herein, 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 the 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.
24.    Assignment.  Buyer may not assign its rights under this Agreement without Seller's prior written consent which shall not be unreasonably withheld..  The notice address for the Approved Assignee is 106 York Road, Jenkintown, PA  19046.
25.    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 through trial and all appellate levels and in any bankruptcy proceedings.
26.    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.

27.    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 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).
28.    Time of Essence.  Time shall be of the essence for the performance of all obligations of Seller and Buyer under this Agreement.
29.    No Recording.  Neither this Agreement nor any notice or memorandum thereof shall be recorded in the Public Records of the County in which the Property is located.

[SIGNATURES APPEAR ON THE FOLLOWING PAGES]

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

BUYER:                    SELLER:
ARC CVNCTPA001, LLC, a Delaware    1803 WILMINGTON ROAD COMPANY, LLC, a
limited liability company            Pennsylvania limited liability company
By:    /s/ Edward M. Weil, Jr.            By:  /s/ Roger Miller                
Name:     Edward M. Weil, Jr.            Name:  Roger Miller                
		
	Title:  President
	Title:  President, Palm Beach Development and  Sales Corp.  Manager

Date:     09/04/2012                Date:     08/31/2012                

THE UNDERSIGNED HEREBY ACKNOWLEDGES AND AGREES TO BE BOUND BY THE TERMS OF THIS AGREEMENT RELATING TO ESCROW AGENT AND THE DEPOSIT.
ESCROW AGENT:
CHICAGO TITLE INSURANCE COMPANY
                        
By:                         
Name:                        
Title:                         
Date:                           

EXHIBITS
Exhibit A    -    Real Property
Exhibit B    -    Form of Special Warranty Deed
Exhibit C    -    Form of Assignment and Assumption of Lease 
Exhibit D    -    Form of Bill of Sale
Exhibit E    -    Form of Assignment of Contracts, Permits, Licenses and Warranties
Exhibit F    -    Form of Tenant Estoppel
Exhibit G    -    Intentionally Deleted
Exhibit H    -    Form of Tenant Notice
Exhibit I    -    Lease Renewal

EXHIBIT A
LEGAL DESCRIPTION OF PROPERTY

EXHIBIT B
FORM OF SPECIAL WARRANTY DEED 
[Subject to Local Counsel Review]
This document prepared by: 
(and return to :)
___________________________ 
___________________________ 
___________________________ 
___________________________

Tax Parcel No. ______________________________
SPECIAL WARRANTY DEED
THIS INDENTURE, made on the _____ day of ______________, 2012, by and between ___________________________________, a ___________________________ ("Grantor"), and ________________________________________, a ______________, whose address is ________________________________ ("Grantee")
W I T N E S S E T H:
THAT Grantor, in consideration of the sum of Ten Dollars ($10.00) and other good and valuable consideration, the receipt of which is hereby acknowledged, does by these presents, sell and convey unto the said Grantee, its successors and assigns, the lots, tracts or parcels of land lying, being and situated in the County of ____________, State of _____________, and more fully described on Exhibit "A" attached hereto and incorporated herein by reference, together with all buildings, facilities and other improvements, located thereon.
TO HAVE AND TO HOLD the premises aforesaid with all and singular, the rights, easements, privileges, appurtenances and immunities thereto belonging or in any wise appertaining unto the said Grantee and unto Grantee's successors and assigns forever, the said Grantor hereby covenanting that Grantor will warrant and defend the title to said premises unto the said Grantee and unto Grantee's successors and assigns, against the lawful claims and demands of all persons claiming under or through Grantor, but not otherwise.

B-1
ARC PSA CVS – New Castle, PA 8/28/2012

IN WITNESS WHEREOF, Grantor has executed this Special Warranty Deed the day and year first above written.
GRANTOR:
                                                

By:                          
                        Name: 
                        Its:

[ACKNOWLEDGMENT]

EXHIBIT C
FORM OF 
ASSIGNMENT AND ASSUMPTION OF LEASE, GUARANTY AND SECURITY DEPOSIT
______________________________ ("Assignor"), in consideration of the sum of Ten and No/100 Dollars ($10.00) in hand paid and other good and valuable consideration, the receipt of which is hereby acknowledged, hereby assigns, transfers, sets over and conveys to ______________________________ ("Assignee"), all of Assignor's right, title and interest in and to that certain Lease dated _________________________________, between Assignor and _____________________________ (as amended from time to time, the “Lease”), including any and all security deposits under the Lease. [together with all of Assignor’s right, title and interest in and to that certain Guaranty of Lease dated _________________________________, between Assignor and _____________________________ (as amended from time to time, the “Guaranty”).]
Subject to the limitations set forth below, Assignor does hereby agree to defend, indemnify and hold harmless Assignee from any liability, damages (excluding speculative damages, consequential damages and lost profits), causes of action, expenses and reasonable attorneys' fees incurred by Assignee by reason of the failure of Assignor to have fulfilled, performed and discharged all of the various commitments, obligations and liabilities of the lessor, or landlord under and by virtue of the Lease prior to the date of this Assignment.  Subject to the limitations set forth below, Assignee does hereby agree to defend, indemnify and hold harmless Assignor from any liability, damages (excluding speculative damages, consequential damages and lost profits), causes of action, expenses and reasonable attorneys' fees incurred by Assignor by reason of the failure of Assignee to have fulfilled, performed and discharged all of the various commitments, obligations and liabilities of the Landlord under and by virtue of the Lease on and after the date of this Assignment.
IN WITNESS WHEREOF, Assignor and Assignee have executed this Assignment this ______ day of ______________, 2012, which Assignment is effective this date.  This Assignment may be executed in counterparts, which when taken together shall be deemed one agreement.
	
		
	ASSIGNOR:
_______________________________
By:                   
 
Name:             
 
Title:             
	ASSIGNEE:
_______________________________
By:                   
 
Name:             
 
Title:             

EXHIBIT D
FORM OF BILL OF SALE
For valuable consideration, the receipt and sufficiency of which is hereby acknowledged, ______________________________, a ___________________________, having an address at ____________________________ (“Seller”), hereby bargains, sells, conveys and transfers to ____________________________ (“Buyer”), a _______________________________, all of Seller’s right, title and interest in and to those certain items of personal and intangible property (including any warranty made by third parties in connection with the same and the right to sue on any claim for relief under such warranties (the “Personal Property”) located at or held in connection with that certain real property located in the State of __________________________, as more particularly described on Schedule A attached hereto and made a part hereof (the "Real Property"), but expressly excluding any such property owned by any tenant on the Real Property.
Seller has not made and does not make any express or implied warranty or representation of any kind whatsoever with respect to the Personal Property, including, without limitation, with respect to title, merchantability of the Personal Property or its fitness for any particular purpose, the design or condition of the Personal Property; the quality or capacity of the Personal Property; workmanship or compliance of the Personal Property with the requirements of any law, rule, specification or contract pertaining thereto; patent infringement or latent defects.  Buyer accepts the Personal Property on an “as is, where is” basis.
IN WITNESS WHEREOF, Seller has caused this instrument to be executed and delivered as of this ___ day of _______, 2012.
SELLER:
                                            
By:                         
Name:                         
Title:                         

SCHEDULE A 
TO BILL OF SALE
(Add legal description of Real Property]

EXHIBIT E
FORM OF ASSIGNMENT OF CONTRACTS, 
PERMITS, LICENSES AND WARRANTIES
THIS ASSIGNMENT, made as of the ___ day of ________, 2012, by _________________, a __________________________ (“Assignor”), to _____________________________, a __________________________________________(“Assignee”).
W I T N E S S E T H:
WHEREAS, by Agreement of Purchase and Sale (the “Purchase Agreement”) dated as of ________, 2006, between Assignor and Assignee, Assignee has agreed to purchase from Assignor as of the date hereof, and Assignor has agreed to sell to Assignee, that certain property located at ________________________ (the “Property”); and
WHEREAS, Assignor desires to assign to Assignee as of the date hereof all of Assignor’s right, title and interest in contracts, permits, trademarks, licenses and warranties held by Assignor in connection with the Property, including without limitation any and all guaranties of leases relating to the Property, to the extent assignable (collectively, the “Contracts”).
NOW THEREFORE, in consideration of the premises and the mutual covenants herein contained, the Assignor hereby assigns, sets over and transfers unto Assignee to have and to hold from and after the date hereof all of the right, title and interest of Assignor in, to and under the Contracts.  Assignor agrees without additional consideration to execute and deliver to Assignee any and all additional forms of assignment and other instruments and documents that may be reasonably necessary or desirable to transfer or evidence the transfer to Assignee of any of Assignor's right, title and interest to any of the Contracts.
This Assignment shall be governed by the laws of the State of _____________, applicable to agreements made and to be performed entirely within said State.
IN WITNESS WHEREOF, Assignor has duly executed this Assignment as of the date first above written.
ASSIGNOR:

                        
a                         

By:                         
Name:                         
Title:                         

EXHIBIT F
TENANT ESTOPPEL CERTIFICATE
THIS TENANT ESTOPPEL CERTIFICATE ("Certificate") is made and entered into as of this     day of     , 2012 by White Cross Stores, Inc. No.14, having an address of c/o CVS Pharmacy, Inc., One CVS Drive, Woonsocket, Rhode Island 02895, ATTN: Property Administration ("Tenant"). Tenant is the tenant under a Lease dated       , 1998 as assigned, modified, supplemented or amended by the documents listed on Exhibit A hereto (herein collectively referred to as the "Lease"); and whereby 1803 Wilmington Road Company, Inc., ("Landlord') is the Landlord under said Lease, and Tenant leases certain real estate (the "Demised Premises") located at 1803 Wilmington Road, New Castle, PA, and more particularly described in the Lease.
The undersigned does hereby certify to Landlord, ARC CVNCTPA001, LLC, and its Lender, successors and assigns, to the best of its knowledge, information and belief, as of the date hereof, the following:
1.Tenant is in possession of the Demised Premises under the terms of the Lease.
2.The Lease is in full force and effect, has not been modified other than as indicated above, and constitutes the complete agreement between Landlord and Tenant with respect to the leasing of the Demised Premises.
3.The term of the Lease commenced on May 11, 1998, and will expire on                __________________________. Tenant has ____  options of five (5) years each to extend the term of the Lease.
4.As of the date of this Certificate, all rents, charges and other payments due Landlord under the Lease have been paid, as set forth in the lease, and Tenant has not prepaid any rent or other charges under the Lease for more than thirty (30) days in advance unless specifically required by the terms of the Lease. Tenant is current in the payment of all fixed rent and other charges due to be paid under the Lease for the period ending         ______________________, 2012.
5.    Except as provided in the Lease, Tenant has no claim, counterclaims, defenses or set-offs against Landlord arising from the Lease,  
nor is Tenant entitled to any concession, rebate, allowance or free rent,

6.The Tenant has no notice or knowledge of any prior assignment, hypothecation or pledge of the rent due under the Lease, except for _____________________________________.
7.Neither Tenant nor Landlord is in default under any terms of the Lease, nor has any event occurred which with the passage of time, after notice, if any required by the Lease, would become an event of default under the Lease.
8.Notices to Tenant should be sent to:

White Cross Stores, Inc. (CVS #         ) 
c/o CVS Pharmacy, Inc.
One CVS Drive
Woonsocket, Rhode Island 02895
ATTN: Property Administration Department
or such other address as Tenant may hereafter specify by written notice to Landlord.
IN WITNESS WHEREOF, the undersigned has caused this Certificate to be duly executed as of the day and year first above written.

WITNESS:    TENANT:

EXHIBIT G
INTENTIONALLY DELETED

EXHIBIT H
FORM OF NOTICE TO TENANT
TO:    [Tenant]

Re:    Notice of Change of Ownership of ______________________________
Ladies and Gentlemen:
YOU ARE HEREBY NOTIFIED AS FOLLOWS:
That as of the date hereof, the undersigned has transferred, sold, assigned, and conveyed all of its right, title and interest in and to the above-described property, (the “Property”) to [INSERT NAME OF BUYER] (the “New Owner”) and assigned to New Owner, all of the undersigned’s right, title and interest under that certain Lease, dated _________, between ________as tenant and ____________as landlord (the “Lease”), together with any security deposits or letters of credit held thereunder. 
Accordingly, New Owner is the landlord under the Lease and future notices and correspondence with respect to your leased premises at the Property should be made to the New Owner at the following address:
                        
                        
                        
You will receive a separate notification from New Owner regarding the new address for the payment of rent.  In addition, to the extent required by the Lease, please amend all insurance policies you are required to maintain pursuant to the Lease to name New Owner as an additional insured thereunder and promptly provide New Owner with evidence thereof.
Very truly yours,
[PRIOR LANDLORD)

By:                     
Name:                     
Title:                      

EXHIBIT I
LEASE RENEWAL

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