Document:

Offer of Employment between Bradley Kolb and the Registrant

 EXHIBIT 10.23 
  
 February 24, 2006 
  
 Mr. Brad Kolb 
  

OFFER OF EMPLOYMENT 
  
 Dear Brad: 
  
 I am very pleased to extend to you this offer of employment to join Avanex (the “Company”). 
  
 The position offered to you is that of Senior Vice President, Operations. Your place of work will be at the Company’s offices in
Fremont, California and you will report to Jo Major, President and CEO. This is a full-time, regular, exempt position of considerable responsibility, integral to our continued business development and success. In this position you will be expected
to devote your full business time, attention and energies to the performance of your duties with the Company. 
  
 The specifics of this offer are as follows: 
  
 Base Salary: You will be compensated at a bi-weekly rate of $8,653, paid every other Friday, subject to the usual, required withholding in accordance with the Company’s normal payroll procedures. (This represents an
equivalent annual rate of pay of $225,000.00). 
  
 Annual Bonus: You will
be eligible to participate in the Executive Bonus Plan for Fiscal Year 2006, in accordance with the guidelines as established by the Compensation Committee of the Board. Under this plan your annual target bonus amount will be 60% of your base
salary. 
  
 Stock Options: Subject to approval by the Compensation
Committee of the Board of Directors, you will be granted a stock option under the Company’s 1998 Stock Plan (the “Plan”) to purchase 400,000 shares of the Company’s Common Stock at an exercise price equal to the then current fair
market value on the date of grant, as determined under the Plan (the “Option”). 
  
 Restricted Stock Units: Subject to approval by the Compensation Committee of the Board of Directors, you will be granted 200,000 shares of restricted stock unit under the Company’s 1998 Stock Plan (the
“Plan”). The terms and conditions of the grant will be included in the Grant Agreement after 6-8 weeks of your start date. 
  
 Start Date: March 13, 2006 upon acceptance of this offer. 

 Offer of Employment 
 Page 2 
  
 Employment Term: In the event that Mr. Kolb’s employment is terminated without cause, he shall be entitled to receive severance according to the
Company’s standard severance policy for executive officers of the company. 
  
 Benefits: As a regular employee, you will be eligible to participate in Avanex’s benefits plans and programs available to U.S. full time employees, in accordance with the terms of those plans. 
  
 At-Will Employment: You should be aware that your employment with the Company
constitutes “at-will” employment. This means that your employment relationship with the Company may be terminated at any time with or without notice, with or without good cause or for any or no cause, at either party’s option. You
understand and agree that neither your job performance nor promotions, commendations, bonuses or the like from the Company give rise to or in any way serve as the basis for modification, amendment, or extension, by implication or otherwise, of your
at-will employment with the Company. 
  
 Conflict of Interest: You agree
that, during the term of your employment with the Company, you will not engage in any other employment, occupation, consulting or other business activity directly related to the business in which the Company is now involved or becomes involved
during the term of your employment, nor will you engage in any other activities that conflict with your obligations to the Company. 
  
 In accepting this offer, you are representing to the Company that (a) you are not a party to any employment agreement or other contract or arrangement which
prohibits your full-time employment with the Company, (b) you do not know of any conflict which would restrict your employment with the Company and (c) you have not and will not bring with you to your employment with the Company any
documents, records or other confidential information belonging to former employers. We ask that, if you have not already done so, you disclose to the Company any and all agreements relating to your prior employment that may affect your eligibility
to be employed by the Company or limit the manner in which you may be employed. 
  
 Employment, Confidential Information, and Invention Assignment Agreement: As a condition of your employment with the Company, you must sign and comply with an Employment, Confidential Information, and Invention Assignment Agreement
which requires, among other provisions, the assignment of rights to any invention made during your employment at Avanex and non-disclosure of proprietary information. As a Company employee, you will be required to sign an acknowledgment that you
have read and understand the Company policies and procedures (as set forth on the Company’s Outlook “Public Files” system or other similar 

 Offer of Employment 
 Page 3 
  
 electronic system that the Company may designate), and you will be expected to abide by all Company policies and procedures. 
  
 Indemnification Agreement: The Company will offer you the opportunity to become a
party to its standard form of indemnification agreement for officers and directors. 
  
 Arbitration Agreement: As a condition of your employment, you are also required to sign and comply with an Arbitration Agreement. Among other provisions, the Arbitration Agreement provides that in the event of certain disputes or
claims relating to or arising out of our employment relationship, you and the Company agree that (i) those disputes between you and the Company shall be fully and finally resolved by binding arbitration, (ii) you are waiving any and all
rights to have such disputes resolved in court by a judge or jury; (iii) the arbitrator shall have the power to award any remedies available under applicable law, except attorneys’ fees and costs, which can be awarded to the prevailing
party only if authorized by statute or contract, (iv) such disputes shall be resolved by a neutral arbitrator, and (v) the Company shall pay for any administrative or hearing fees charged by the arbitrator. Please note that we must receive
your signed Arbitration Agreement before your first day of employment. 
  
 Reference and Background Checks: The Company reserves the right to conduct reference checks and/or background investigations on all of its potential employees. Your job offer, therefore, is contingent upon a clearance
of such a reference check and/or background investigation. 
  
 I-9 Employment
Eligibility Verification: For purposes of federal immigration law, you will be required to provide to the Company documentary evidence of your identity and eligibility for employment in the United States. Such documentation must be provided to
us within three (3) business days of your date of hire, or our employment relationship with you may be terminated. 
  
 Governing Law: The internal substantive laws, but not the choice of law rules, of the State of California, shall govern this letter. You hereby agree to exclusive
personal jurisdiction and venue in the state and federal courts of the state of California. 
  
 Severability: In the event that any provision hereof becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable, or void, this letter shall continue in full force and effect
without such provision. 
  
 General: This letter, along with the other
aforementioned employment-related agreements and stock option described above, set forth the terms of your employment with the Company and 

 Offer of Employment 
 Page 4 
  
 supersede in their entirety any and all prior agreements and understandings concerning your employment relationship with the Company, whether written or oral. The terms
of this letter may only be amended, canceled or discharged in writing signed by an authorized representative of the Company and by you. 
  
 We would appreciate a response to this offer no later than March 3, 2006. To indicate your acceptance of this offer, please sign and date this letter in the space
provided below and return it to Human Resources. A duplicate original is enclosed for your records. 
  
 Brad, it is a pleasure extending this offer to you. We are hopeful that you recognize, as we do, the tremendous opportunity we have ahead of us and we welcome you to the Avanex team. 
  
 Sincerely, 
  
  
 AVANEX CORPORATION 
  
 Jo Major 
  
 President and CEO

  
 /s/    Jo Major

  
 Accepted:
                    /s/    Bradley A.
Kolb                     Date:         3/3/06        

  
 Enclosures 
 Duplicate Offer Letter 
 Employment, Confidential Information, and Invention Assignment Agreement 
 Indemnification
Agreement 
 Arbitration AgreementEscrow Agreement

 Exhibit 4.5 
 ESCROW AGREEMENT 
 This ESCROW AGREEMENT is made effective as of this 9th day of August, 2006,
by and among INSTITUTIONAL REIT, INC., a Maryland corporation (“Company”), WELLS INVESTMENT SECURITIES, INC., a Georgia corporation (“Dealer Manager”), and THE BANK OF NEW YORK, a national
banking association (“Escrow Agent”). 
 W I T N E S S E T
H: 
 WHEREAS, Company proposes to offer to the public (the “Public Offering”) up to a maximum of
1,000,000 shares of its common stock, par value $10.00 per share (“Shares”) pursuant to the terms of, and at the prices set forth in, Company’s prospectus (“Prospectus”) contained in the registration statement
(the “Registration Statement”) filed with the Securities and Exchange Commission (“Commission”) (capitalized terms used but not otherwise defined herein shall have the respective meanings given in the Prospectus);

 WHEREAS, the Dealer Manager will distribute the Shares on behalf of Company on a “best efforts” basis; 
 WHEREAS, it is anticipated that prospective investors will subscribe for Shares and will provide Dealer Manager with subscription payments for
such Shares (the “Subscription Payments”), which subscriptions will be contingent upon (i) their respective acceptances by Company and (ii) Company’s acceptance of subscriptions aggregating at least $10,000,000 in
subscription proceeds (the “Minimum Subscription”); 
 WHEREAS, Escrow Agent has agreed to receive and hold in escrow
all Subscription Payments until the earlier of (i) such time as subscriptions for the Minimum Subscription have been received and accepted by Company or (ii) the close of business on the date exactly one year after the original effective
date of the Registration Statement (the “Minimum Subscription Termination Date”), and to hold and distribute such Subscription Payments in accordance with the terms and conditions herein set forth; 
 WHEREAS, pursuant to the Prospectus, if prospective investors have not subscribed for at least the Minimum Subscription by the Minimum
Subscription Termination Date, the Public Offering shall be terminated, and all Subscription Payments shall be returned to the prospective investors together with any earnings thereon; 
 NOW, THEREFORE, in consideration of the premises and the mutual covenants and agreements hereinafter set forth, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 
 1. Appointment of
Escrow Agent. Company and Dealer Manager hereby appoint Escrow Agent to serve as escrow agent hereunder, and Escrow Agent hereby accepts such appointment in accordance with the terms of this Escrow Agreement. Company and Dealer
Manager hereby acknowledge that the status of Escrow Agent is that of agent only for the limited purposes set forth herein, and hereby agree that they will not represent or imply that Escrow Agent has investigated the desirability or advisability of
investment in the Shares or has approved, endorsed or passed upon the merits of the investment therein. Company and Dealer Manager further agree that the name of the Escrow Agent shall not be used in any manner in connection with the offer or sale
of the Shares other than to state that the Escrow Agent has agreed to serve as escrow agent for the limited purposes set forth herein. 

 2. Deposit into Escrow. Until such time as prospective investors have subscribed for the
Minimum Subscription, Dealer Manager will (i) instruct subscribers to remit the Subscription Payments by wire transfer directly to the Escrow Account (as defined below), (ii) by 12:00 p.m. Eastern Time on the next business day following
Escrow Agent’s receipt of Subscription Payments, send to Escrow Agent a list of the names, social security numbers or tax identification numbers, and addresses (and any other information required for withholding purposes) of, and amounts paid
by, each prospective investor, and (ii) allow such Subscription Payments to remain in escrow with Escrow Agent and not withdraw, or attempt to withdraw, such Subscription Payments from Escrow Agent, except as herein provided. Notwithstanding
the foregoing, if any prospective investor shall exercise any right provided by law to rescind his or her subscription, Escrow Agent shall, upon notice from Company or Dealer Manager, return to such prospective investor all Subscription Payments
pertaining to such subscription, together with any earnings thereon during the period that such Subscription Payments were held by Escrow Agent under this Escrow Agreement. 
 All Subscription Payments received by Escrow Agent pursuant hereto shall be deposited immediately by Escrow Agent in a separate account designated as the
“Escrow Account for the Benefit of Subscribers for Common Stock of Wells REIT Institutional, Inc.” (the “Escrow Account”). The Escrow Account shall be created and maintained subject to the terms of this Escrow Agreement
and the customary rules and regulations of Escrow Agent pertaining to such accounts. 
 If any of the instruments of payment for the
subscription of Shares are dishonored or returned to Escrow Agent for nonpayment prior to receipt of the Minimum Subscription, Escrow Agent shall promptly notify Dealer Manager in writing of such nonpayment and return such instruments of payment to
Dealer Manager. In any such instance, Escrow Agent is authorized to debit the Escrow Account in the amount of such return payment as well as any earnings on the investment represented by such payment. 
 3. Investment of the Funds in the Escrow Account. Escrow Agent shall hold funds delivered to it under the terms of this Escrow Agreement
and shall from time to time invest and reinvest the funds held in the Escrow Account, as and when instructed pursuant to joint written instructions by Company and Dealer Manager, in any one or more of the following: 
 (a) obligations of the United States of America; 
 (b) obligations guaranteed or collateralized by the United States of America; 
 (c) money market accounts of any national banks or
state banks insured by the Federal Deposit Insurance Corporation, including Escrow Agent; and 
 (d) certificates of deposit of any national
banks or state banks insured by the Federal Deposit Insurance Corporation, including Escrow Agent. 
 No investment shall be made in any
instrument or security that has a maturity of greater than three (3) months. If no joint written instructions are received by Escrow Agent as provided above, Escrow Agent may invest amounts held in the Escrow Account in money market funds of
the type described in subparagraph (c) above. Any income or interest realized from the investments made by Escrow Agent pursuant hereto shall be reinvested by Escrow Agent until directed otherwise under the terms of this Escrow Agreement.
Dealer Manager and Company may examine any and all documentation regarding the investment of the Escrow Account during normal business hours at the offices of Escrow Agent. 
  

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 4. Disbursements From Escrow Account. 
 (a) Rejected Subscriptions. No later than five (5) business days after receipt by Escrow Agent of written notice from Company or Dealer
Manager that Company intends to reject a potential investor’s subscription, Escrow Agent shall pay by wire the amount of the Subscription Payment paid by such potential investor (together with all earnings thereon) or Escrow Agent shall return
the instruments of payment delivered to Escrow Agent with respect to any Subscription Payment if such instruments have not been processed for collection prior to such time directly to such potential investor. 
 (b) Termination of Public Offering. In the event that on the Minimum Subscription Termination Date, Escrow Agent is
not in receipt of evidence of subscriptions accepted on or before such date, and instruments of payment dated not later than that date (or actual wired funds), for the purchase of Shares at least equal to the Minimum Subscription, Escrow Agent shall
promptly notify Company and Escrow Agent shall promptly return all funds received in full to subscribers, together with their pro rata share of any interest earned thereon, pursuant to instructions made by Company, upon which Escrow Agent may
conclusively rely. [In order to make a “prompt refund” as required by Exchange Act rules, will BONY require advance notice prior to termination that the Minimum Subscription will not be raised?] 
 (c) Receipt of Minimum Subscription Payments. Subject to the provisions of Section 2 and Section 4(a) and (b) hereof, Escrow
Agent shall hold all Subscription Payments deposited with Escrow Agent in the Escrow Account under the terms of this Escrow Agreement until such date (“Minimum Subscription Satisfaction Date”) as Company and Dealer Manager shall
have delivered to the Escrow Agent a joint written instruction notifying Escrow Agent that the Minimum Subscription has been received and accepted (the “Minimum Subscription Notice and Disbursement Instruction.”) Within one
(1) business days of the Minimum Subscription Notice and Disbursement Instruction, Escrow Agent shall deliver all Subscription Payments in the Escrow Account and all earnings thereon to Company in the manner, amounts and to the bank accounts
set forth in the Minimum Subscription Notice and Disbursement Instruction. 
 For a period of 30 days after the Minimum Subscription Satisfaction Date,
Escrow Agent will keep open the Escrow Account. Any Subscription Proceeds received by Escrow Agent for up to 30 days after the Minimum Subscription Satisfaction Date will be forwarded to the Company pursuant to instructions provided by the Company.

 5. Escrow Agent Compensation. Escrow Agent shall be entitled to receive compensation for its services as Escrow Agent
hereunder as set forth on the schedule attached hereto and made a part hereof as Exhibit A, which compensation shall be paid by Company. Notwithstanding anything contained in this Escrow Agreement to the contrary, in no event shall any fee,
reimbursement for costs and expenses, indemnification for any damages incurred by Escrow Agent, or monies whatsoever be paid out of or chargeable to the income or assets in the Escrow Account held by Escrow Agent. The Company shall reimburse the
Escrow Agent upon request for all expenses, disbursements, and advances incurred or made by the Escrow Agent in implementing any of the provisions of this Agreement, including compensation and the expenses and disbursements of its counsel, except
any such expense, disbursement, or advance as may arise from its gross negligence or willful misconduct. 
 6. Resignation and Removal
of Escrow Agent. Escrow Agent may resign at any time from its obligations under this Escrow Agreement by providing written notice to Company and Dealer Manager. Such resignation shall be effective on the date specified in such notice, which
shall be not less than thirty (30) days after such written notice has been given. In addition, Company and Dealer Manager may jointly remove Escrow Agent as the escrow agent at any time with or without cause, by a written instrument executed by
both of them (which may be executed in counterparts) given to Escrow Agent, which instrument shall designate the effective date of such removal. In the event of any such resignation or removal, a successor escrow agent, which shall be a bank or
trust company organized under the laws of the United States of 
  

 - 3 - 

 America, shall be appointed by the mutual agreement of Company and Dealer Manager. Any such successor escrow agent shall
deliver to Company and Dealer Manager a written instrument accepting such appointment, and thereupon it shall succeed to all the rights and duties of Escrow Agent hereunder and shall be entitled to receive the Escrow Account. If no successor escrow
agent is named by Company and Dealer Manager, Escrow Agent may apply to a court of competent jurisdiction for appointment of a successor Escrow Agent. 
 7. Liability of Escrow Agent. Escrow Agent shall not be liable to anyone for any losses, claims, damages, liabilities or expenses that it may incur as a result of any act or omission of Escrow Agent,
unless such losses, claims, damages, liabilities or expenses are caused by Escrow Agent’s bad faith, willful misconduct or gross negligence. Accordingly, Escrow Agent shall not incur any such liability with respect to (i) any action taken
or omitted in good faith upon the advice of Escrow Agent’s counsel or counsel for any other party hereto, given with respect to any question relating to the duties and responsibilities of Escrow Agent under this Escrow Agreement or
(ii) any action taken or omitted in reliance upon any instrument, including execution, or the identity or authority of any person executing such instrument, its validity and effectiveness, but also as to the truth and accuracy of any
information contained therein that Escrow Agent shall, in good faith, believe to be genuine, to have been signed by a proper person or persons and to conform to the provisions of this Escrow Agreement. 
 8. Indemnification of Escrow Agent. Company and Dealer Manager hereby jointly and severally agree to indemnify and hold Escrow Agent (and
its officers, directors, employees and agents) harmless from and against any and all losses, claims, damages, liabilities and expenses, including reasonable attorney’s fees and expenses, that may be imposed on Escrow Agent or incurred by Escrow
Agent in connection with Escrow Agent’s acceptance of its appointment hereunder, or the performance of Escrow Agent’s duties hereunder, except where such losses, claims, damages, liabilities and expenses result from Escrow Agent’s bad
faith, gross negligence or willful misconduct. This section shall survive termination of this escrow agreement and/or the resignation or removal of the Escrow Agent. 
 9. Disputes. In the event of any disagreement among any of the parties to this Escrow Agreement, or among them or any other person resulting in adverse claims and demands being made in connection with or
from any property in the Escrow Account, Escrow Agent shall be entitled to refuse to comply with any such claims or demands as long as such disagreement may continue, and in so refusing, shall make no delivery or other disposition of any property
then held by it in the Escrow Account under this Escrow Agreement, and in so doing Escrow Agent shall be entitled to continue to refrain from acting until (i) the right of adverse claimants shall have been finally settled by binding arbitration
or finally adjudicated in a court assuming and having jurisdiction of the property involved herein or affected hereby or (ii) all differences shall have been adjusted by agreement and Escrow Agent shall have been notified in writing of such
agreement signed by the parties hereto. 
 In the event of such disagreement (or a resignation by Escrow Agent under the terms of this Escrow
Agreement), Escrow Agent may tender into the registry or custody of any court of competent jurisdiction all money or property in its hands under the terms of this Escrow Agreement, together with instituting any other legal proceeding it deems
appropriate, and thereupon Escrow Agent shall be discharged from all further duties under this Escrow Agreement. The filing of any such legal proceeding shall not deprive Escrow Agent of its compensation earned prior to such filing. 
 10. Representations and Warranties. 
 (a) Each of Company and Dealer Manager respectively makes the following representations and warranties to Escrow Agent: 
 (i) It is
a corporation, duly organized, validly existing, and in good standing under the laws of the state of its incorporation, and has full power and authority to execute and deliver this Escrow Agreement and to perform its obligations hereunder.

  

 - 4 - 

 (ii) This Escrow Agreement has been duly approved by all necessary corporate action, including any
necessary shareholder approval, has been executed by its duly authorized officers, and constitutes its valid and binding agreement, enforceable in accordance with its terms. 
 (iii) The execution, delivery, and performance of this Escrow Agreement will not violate, conflict with, or cause a default under its articles of
incorporation or bylaws, any applicable law or regulation, any court order or administrative ruling or decree to which it is a party or any of its property is subject, or any agreement, contract, indenture, or other binding arrangement to which it
is a party or any of its property is subject. The execution, delivery and performance of this Escrow Agreement is consistent with the Prospectus, and the Prospectus properly describes the allocation of interest and other earnings to potential
investors pursuant to this Escrow Agreement. 
 (iv) All of its representations and warranties contained herein are true and complete as of
the date hereof and will be true and complete at the time of any deposit to or disbursement from the Escrow Account. 
 (b) The Escrow Agent
represents and warrants that it is, and will be at the time of any deposit to or disbursement from the Escrow Account, a “bank” as that term is defined in Section 3(a)(6) of the Securities Exchange Act of 1934. 
 11. Identifying Information. Company and Dealer Manager acknowledge that the identifying information set forth on Exhibit B is being
requested by Escrow Agent in connection with the USA Patriot Act, Pub.L.107-56 (the “Act”), and Company and Dealer Manager agree to provide any additional information reasonably requested by Escrow Agent in connection with the Act
or any similar legislation or regulation to which Escrow Agent is subject, in a timely manner. Company and Dealer Manager each represents that its respective identifying information set forth on Exhibit B, including without limitation, its
Taxpayer Identification Number assigned by the Internal Revenue Service or any other taxing authority, is true and complete on the date hereof and each agrees to notify Escrow Agent of any change with respect thereto during the term of this Escrow
Agreement. 
 12. Notices. All notices, demands or other communications to be given or delivered under or by reason of any
provision of this Escrow Agreement shall be in writing and shall be deemed to have been given (i) on the date delivered in person, (ii) on the date indicated on the return receipt if mailed postage prepaid, by certified or registered U.S.
Mail, with return receipt requested, (iii) on the date transmitted by facsimile, if sent by 5:00 P.M., Eastern Time on a business day (or the next business day if after such time or if sent on a day other than a business day), and confirmation
of receipt thereof is obtained, or (iv) on the next business day after delivery (in time for and specifying next day delivery) to Federal Express or other nationally recognized overnight courier service or overnight express U.S. Mail, with
service charges or postage prepaid. The addresses and facsimile numbers of the parties for purposes of this Escrow Agreement are: 
  

			
	 If to Company:
	  	Institutional REIT, Inc.
		  	6200 The Corners Parkway
		  	Norcross, Georgia 30092
		  	Facsimile No.: 770-243-8198
		  	Attention: Leo F. Wells, III, President

  

 - 5 - 

			
	With a copy to:	  	DLA Piper Rudnick Gray Cary US LLP
		  	4700 Six Forks Road, Suite 200
		  	Raleigh, North Carolina 27609
		  	Facsimile No.: 919-786-2200
		  	Attention: Robert H. Bergdolt, Esq.
		
	If to Dealer Manager:	  	Wells Investment Securities, Inc.
		  	6200 The Corners Parkway
		  	Norcross, Georgia 30092
		  	Facsimile No.: (770) 243-8198
		  	Attention: Thomas E. Larkin, President
		
	With a copy to:	  	DLA Piper Rudnick Gray Cary US LLP
		  	4700 Six Forks Road, Suite 200
		  	Raleigh, North Carolina 27609
		  	Facsimile No.: 919-786-2200
		  	Attention: Robert H. Bergdolt, Esq.
		
	If to Escrow Agent:	  	The Bank of New York
		  	101 Barclay Streer, 8W
		  	New York, NY 10286
		  	Facsimile No.: 212-815-5875/5877
		  	Attention: Odell Romeo

 or to such other address or facsimile number, or to the attention of such other person, as the receiving party has
specified by prior written notice to the sending party pursuant to this Section 12. 
 13. Binding Effect. This Escrow
Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, executors, administrators, successors and assigns. 
 14. Term. This Escrow Agreement shall terminate upon distribution of all Subscription Payments in the Escrow Account in accordance with Section 4, or upon the written agreement of Company and Dealer
Manager. 
 15. Amendments. This Escrow Agreement shall not be modified, revoked, released or terminated except upon the mutual
consent of Company and Dealer Manager, given in writing and delivered to the Escrow Agent. Should, at any time, any attempt be made to modify this Escrow Agreement in a manner that would increase the duties and responsibilities of Escrow Agent or to
modify this Escrow Agreement in any manner that Escrow Agent deems undesirable, Escrow Agent may resign by notifying Company and Dealer Manager in writing, by certified mail, and until (i) acceptance by a successor escrow agent appointed
jointly by Company and Dealer Manager or (ii) thirty (30) days following the date upon which such notice was delivered by Escrow Agent, whichever occurs sooner, Escrow Agent’s only remaining obligation shall be to perform its duties
hereunder in accordance with the terms of the Escrow Agreement without regards to any such modification. 
 16. Assignment.
Except as otherwise provided herein, no party may, without the express written consent of each other party, assign or transfer this Escrow Agreement in whole or in part. 
  

 - 6 - 

 17. Governing Law. This Escrow Agreement is governed by, and shall be construed and
enforced in accordance with, the laws of the State of Georgia without regard to its conflict of laws rules. The parties hereto hereby waive the right to trial by jury and to assert counterclaims in any such proceedings. To the extent that in any
jurisdiction any Depositor may be entitled to claim, for itself or its assets, immunity from suit, execution, attachment (whether before or after judgment) or other legal process, each hereby irrevocably agrees not to claim, and hereby waives, such
immunity. The parties hereto waive personal service of process and consent to service of process by certified or registered mail, return receipt requested, directed to it at the address last specified for notices hereunder, and such service shall be
deemed completed ten (10) calendar days after the same is so mailed. 
 18. Severability. Whenever possible, each
provision of this Escrow Agreement shall be interpreted in such manner as to be effective and valid under Georgia law, but if any provision shall be prohibited by or be invalid under applicable law, such provision shall be ineffective to the extent
of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Escrow Agreement. 
 19. Headings. The headings as to contents of particular sections of this Escrow Agreement are inserted for convenience and shall not be construed as a part of this Escrow Agreement or as a limitation on or expansion of the
scope of any terms or provisions of this Escrow Agreement. 
 20. Counterparts. This Escrow Agreement may be executed in two or
more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. It shall not be necessary for every party hereto to sign each counterpart but only that each party shall sign at
least one such counterpart. 
  

	 	21.	Entire Agreement. This Escrow Agreement contains the entire understanding between and among the parties hereto and supersedes any previous understandings, written or
oral, that the parties may have reached, with respect to the subject matter of this Escrow Agreement. 

  

	 	22.	Miscellaneous. 

  

	 	(a)	Escrow Agent shall not incur any liability for not performing any act or fulfilling any duty, obligation or responsibility hereunder by reason of any occurrence beyond the
control of Escrow Agent (including but not limited to any act or provision of any present or future law or regulation or governmental authority, any act of God or war, or the unavailability of the Federal Reserve Bank wire or telex or other wire or
communication facility). 

  

	 	(b)	The Escrow Agent does not have any interest in the Escrowed Property deposited hereunder but is serving as escrow holder only and having only possession thereof. The Company
shall pay or reimburse the Escrow Agent upon request for any transfer taxes or other taxes relating to the Escrowed Property incurred in connection herewith and shall indemnify and hold harmless the Escrow Agent any amounts that it is obligated to
pay in the way of such taxes. Any payments of income from this Escrow Account shall be subject to withholding regulations then in force with respect to United States taxes. The parties hereto will provide the Escrow Agent with appropriate W-9 forms
for tax I.D., number certifications, or W-8 forms for non-resident alien certifications. It is understood that the Escrow Agent shall be responsible for income reporting only with respect to income earned on investment of funds which are a part of
the Escrowed Property and is not responsible for any other reporting. This paragraph shall survive notwithstanding any termination of this Escrow Agreement or the resignation of the Escrow Agent. 

  

	 	(c)	The Escrow Agent may engage its own outside counsel with respect to any matter relating to this Agreement with prior notice provided to the Company. 

[Signatures on Next Page] 
  

 - 7 - 

 IN WITNESS WHEREOF, the parties hereto have made and entered into this Escrow Agreement on the
date first hereinabove set forth. 
  

			
	 COMPANY:

	
	 INSTITUTIONAL REIT, INC.

		
	By:	 	 /s/ Douglas P. Williams

	Name:	 	Douglas P. Williams
	Title:	 	Executive Vice President
	
	 DEALER MANAGER:

	
	 WELLS INVESTMENT SECURITIES, INC.

		
	By:	 	 /s/ Robert McCullough

	Name:	 	Robert McCullough
	Title:	 	Asst. Treasurer
	
	 ESCROW AGENT:

	
	 THE BANK OF NEW YORK

		
	By:	 	 /s/ Odell D. Romeo

	Name:	 	Odell D. Romeo
	Title:	 	Assistant Vice President

  

 - 8 - 

 Exhibit A 
 Escrow Agent Fees 
 See August 4, 2006 Escrow Account Fee Schedule 
  

 A-1 

 Exhibit B 
 Identifying Information 
 Taxpayer Identification Numbers: 

 

			
	Company:	  	20-4992451
		
	Dealer Manager:	  	58-1572141

  

 B-1

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