Document:

Sales contract of Chuck E. Cheese, dated February 25, 2005

 Exhibit 10.5 
  
 PURCHASE AGREEMENT 
  
 THIS PURCHASE AGREEMENT (“Agreement”) is dated as of the Effective Date (as defined in Addendum I hereto) by and between Rancon Realty Fund V, a
California limited partnership (“Seller”) and Tony Padilla and Armida Padilla, (herein collectively referred to as “Buyer”). 
  
 Recitals 
  
 A. Buyer desires to acquire the Property from Seller and Seller desires to sell the Property to Buyer, upon the terms and subject to the conditions set
forth in this Agreement. 
  
 NOW, THEREFORE, in consideration of
the premises, the mutual representations, warranties, covenants and agreements hereinafter contained, and other good and valuable consideration the receipt and sufficiency of which are hereby acknowledged and intending to be legally bound, the
parties hereby agree as follows: 
  
 1. Definitions. Terms used in this
Agreement shall have the meanings set forth in Addendum I attached hereto. 
  
 2.
Agreement to Purchase and Sell. Subject to and upon the terms and conditions herein set forth and the representations and warranties contained herein, Seller agrees to sell the Property to Buyer, and Buyer agrees to purchase the Property from
Seller. 
  
 3. Consideration. Seller and Buyer agree that the total
Consideration for the Property shall be Two Million One Hundred Fifty-Seven Thousand Eight Hundred Dollars ($2,157,800). 
  
 (a) The Consideration shall comprise the following components: 
  

(i) Buyer has deposited the Initial Deposit with the Title Company. Prior to the expiration of the Due Diligence Period, Buyer shall deposit the
Additional Deposit in escrow with the Title Company. If the Additional Deposit is not made prior to the expiration of the Due Diligence Period, this Agreement shall terminate and the Initial Deposit, together with any interest that has accrued
thereon, shall be returned to the Buyer and each party shall be relieved from any further liability or obligation hereunder. Upon receipt of the Additional Deposit, the Title Company shall pay the Earnest Money to Seller and the Earnest Money shall
become nonrefundable unless Buyer shall terminate this Agreement upon failure of Buyer’s Conditions Precedent as provided in Section 5. All Earnest Money while held by the Title Company shall be held in a federally insured interest-bearing
account and interest accruing thereon shall be for the 

 account of the Buyer and shall become part of the Earnest Money. In the event the transaction
contemplated hereby is consummated, the Earnest Money shall be credited against Buyer’s payment obligations hereunder. 
  
 (ii) Cash. Immediately available funds, in an amount equal to the Consideration, less the Earnest Money. 
  
 4. Buyer’s Due Diligence. As more fully provided below, Seller agrees to assist
and cooperate with Buyer in obtaining access to the Property and certain documents relating thereto for purposes of inspection and due diligence. 
  
 (a) Physical Inspection of the Property. At any time(s) reasonably requested by Buyer following the Effective Date and prior to Closing, Seller
shall afford authorized representatives of Buyer reasonable access to the Property for purposes of satisfying Buyer with respect to the representations, warranties and covenants of Seller contained herein and with respect to the satisfaction of any
Conditions Precedent to the Closing; provided, however, that Buyer shall use commercially reasonable efforts not to unreasonably disturb or interfere with the rights of Tenants. Buyer shall provide Seller with not less than forty-eight (48) hours
advance written notice of any such inspections, and Seller, at its election, shall have the right to have a representative present during any such investigations. Buyer shall not perform any intrusive testing without the prior written consent of
Seller, which consent may be arbitrarily withheld. Buyer hereby agrees to indemnify and hold Seller harmless from any claims, liabilities, costs, damages or injury to persons or property resulting from such investigations or caused by Buyer or its
authorized representatives during their entry and investigations prior to the Closing. In the event this Agreement is terminated, Buyer shall restore the Property to substantially the condition in which it was found. This indemnity shall survive the
termination of this Agreement or the Closing, as applicable. 
  
 (b) Delivery of Documents and Records. To the extent not previously delivered, Seller shall deliver the Due Diligence Materials to Buyer within five (5) days after the Effective Date. Except as specifically set forth herein, Seller
makes no representations or warranties as to the truth, accuracy or completeness of any materials, data or other information supplied to Buyer in connection with Buyer’s inspection of the Property (e.g., that such materials are complete,
accurate, or the final version thereof, or that all such materials are in the Seller’s possession). It is the parties’ express understanding and agreement that such materials are provided only for Buyer’s convenience in making its own
examination and determination prior to the Approval Date, as to whether or not it wishes to purchase the Property, and, in doing so, Buyer shall rely exclusively on its own independent investigation and evaluation of every aspect of the Property and
not on any materials supplied by Seller. Buyer expressly disclaims any intent to rely on any such materials provided to it by Seller in connection with its own inspections and agrees that it shall rely solely on its own independently developed or
verified information. 
  

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 (c) Contacts with Property Managers. At any time reasonably requested by Buyer following the
Effective Date and prior to Closing, Buyer may contact and interview the property manager/leasing agent(s), provided that such contacts or interviews shall occur only after reasonable oral or written notice to Seller and Seller may be present during
any interview. 
  
 (d) Service Contracts. At or before the
Closing, except as set forth below, Seller will terminate all existing Service Contracts for the Property except for those Service Contracts listed on Schedule 2, which will be assigned to and assumed by Buyer at the Closing. 
  
 (d)Approval of Title. Prior to the Approval Date, Buyer shall advise
Seller what exceptions to title, if any, will be accepted by Buyer. Seller shall have ten (10) business days after receipt of Buyer’s objections to give to Buyer: (A) written notice that Seller will remove such objectionable exceptions on or
before the Closing Date; or (B) written notice that Seller elects not to cause such exceptions to be removed. Seller’s failure to give notice to Buyer within the ten (10) business day period shall be deemed to be Seller’s election not to
cause such exceptions to be removed. If Seller gives Buyer notice or is otherwise deemed to have elected to proceed under clause (B), Buyer shall have until five (5) days after receipt of Seller’s actual or deemed notice as to Seller’s
unwillingness to cause such exceptions to be removed to elect to proceed with the transaction or terminate this Agreement. If Buyer fails to give Seller notice of its election on or before the expiration of such five (5) day period, Buyer shall be
deemed to have elected to proceed with the transaction and to have waived any right terminate this Agreement under this provision. If Seller gives notice pursuant to clause (A) and fails to remove any such objectionable exceptions from title prior
to the Closing Date, and Buyer is unwilling to take title subject thereto, Buyer shall have the right to elect to terminate this Agreement and Section 14(a) shall apply. Notwithstanding the foregoing, Seller shall remove, at its expense, any
exception to title that represents a lien that secures an existing monetary obligation except taxes and assessments that are not yet due and payable. 
  
 (f) Buyer’s Right to Terminate. At any time up to the Approval Date, Buyer has the unqualified right to terminate this Agreement and obtain a
refund of any and all amounts paid hereunder to Title Company or to Seller, subject to Buyer’s obligations to return Due Diligence Materials to Seller as provided in the Section entitled “Conditions to Closing.” On or before the
Approval Date, if Buyer wishes to terminate this Agreement, Buyer may give the Seller written notice of its disapproval of the Property and election to terminate this Agreement. 
  

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 Notwithstanding any provision herein to the contrary, if Buyer fails to deliver the Additional Deposit to
the Title Company on or before the Approval Date, Buyer shall be deemed to have exercised its right to terminate this Agreement. 
  
 5. Conditions to Closing. 
  
 (a) Buyer’s Conditions Precedent. Buyer’s Conditions Precedent as set forth below are conditions to Buyer’s obligation to acquire
the Property. The Buyer’s Conditions Precedent are intended solely for the benefit of Buyer. If any of the Buyer’s Conditions Precedent is not satisfied, Buyer shall have the right in its sole discretion either to waive the Buyer’s
Condition Precedent and proceed with the acquisition without adjustment to the Consideration or terminate this Agreement by written notice to Seller and the Title Company and thereupon Buyer shall obtain a refund of any and all amounts paid
hereunder to the Title Company or to Seller, subject to Buyer’s obligation to return Due Diligence Material as provided in Subsection (d) below. 
  
 (i) Conveyances by Seller. At the Closing, Seller shall convey to Buyer all of its right, title and interest to the Property by executing and
delivering all documents required to be delivered by Seller pursuant to the Section entitled “Closing and Escrow.” 
  
 (ii) Representations and Warranties. The representations and warranties of the Seller contained in Addendum II shall be true and correct as of the
Closing Date as though made at and as of the Closing Date, and Seller’s covenants under this Agreement shall be satisfied as of the Closing Date (to the extent such covenants are to be satisfied as of the Closing Date.) 
  
 (iii) Title Policy. Title Company shall be committed to issue the
Title Policy at Closing for the Property, showing title to the insured Property vested in Buyer, subject only to the Permitted Exceptions. Buyer may elect to obtain a new survey or revise, modify, or re-certify an existing survey
(“Survey”) as necessary in order for the Title Company to delete the survey exception from the Title Policy or to otherwise satisfy Buyer’s objectives; provided, however, in no event shall the issuance and/or receipt of such Survey be
a condition precedent to, or delay, Closing. 
  
 (iv) Tenant
Estoppel Certificates. Seller obtaining and delivering to Buyer the Tenant Estoppel Certificates on or before the Closing Date, as required under Section 8 hereunder. 
  

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 (v) Property Condition. The physical condition of the Real Property shall be substantially the
same on the Closing Date as on the Effective Date, reasonable wear and tear and loss by casualty excepted. 
  
 (b) Seller’s Conditions Precedent. Seller’s Conditions Precedent as set forth below are conditions precedent to Seller’s obligation
to transfer the Property, and are intended solely for the benefit of Seller. If any of the Seller’s Conditions Precedent is not satisfied, Seller shall have the right in its sole discretion either to waive the Seller’s Condition Precedent
and proceed with the transaction or terminate this Agreement by written notice to Buyer and the Title Company. 
  
 (i) Representations and Warranties. The representations and warranties of Buyer contained herein shall be true and correct as of the Closing Date
as though made at and as of the Closing Date, and Buyer’s covenants under this Agreement shall be satisfied as of the Closing Date (to the extent such covenants are to be satisfied as of the Closing Date. 
  
 (c) Deemed Approval of Conditions. In the event that any party having
the right of cancellation hereunder based on failure of a condition precedent set forth herein does not inform the other party and Title Company in writing of the failure of any condition precedent made for the benefit of such party prior to the
Closing, such failure shall be deemed to have been waived, effective as of the Closing; provided that a party shall not be deemed to have waived any claim for breach of any representation or warranty by the other party unless such party has Actual
Knowledge of such breach prior to Closing. 
  
 (d) Return of
Materials. Upon termination of this Agreement and the escrow for failure of a condition precedent or upon termination by Buyer prior to the Approval Date, Buyer shall return to Seller all materials provided by Seller to Buyer pursuant to the
Section entitled “Buyer’s Due Diligence.” 
  
 6. Closing and
Escrow. 
  
 (a) Closing Date. The Closing shall be
conducted through the Title Company, on or before the Closing Date. 
  
 (b) Deposit of Agreement and Escrow Instructions. The parties shall promptly deposit a fully executed copy of this Agreement with Title Company and this Agreement shall serve as escrow instructions to Title Company for consummation
of the transactions contemplated hereby. The parties agree to execute such additional escrow instructions as may be appropriate to enable Title Company to comply with the terms of this Agreement; provided, however, that in the event of any conflict
between the provisions of this Agreement and any 
  

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 supplementary escrow instructions, the terms of this Agreement shall control unless such supplementary
instructions are signed by both Buyer and Seller and a contrary intent is expressly indicated in such supplementary instructions. Seller and Buyer hereby designate Title Company as the Reporting Person for the transaction pursuant to Section 6045(e)
of the Internal Revenue Code and the regulations promulgated thereunder. 
  
 (c) Seller’s Deliveries to Escrow. At or before the Closing, Seller shall deliver to the Title Company, in escrow, the following: 
  
 (i) the duly executed and acknowledged Deed; 
  
 (ii) a duly executed Assignment of Leases; 
  
 (iii) a duly executed Bill of Sale; 
  
 (iv) a duly executed Assignment of Contracts; 
  
 (v) a FIRPTA affidavit (in the form attached as Exhibit E) pursuant to Section 1445(b)(2) of the Internal Revenue Code of
1986, and on which Buyer is entitled to rely, that Seller is not a foreign person within the meaning of Section 1445(0(3) of the Internal Revenue Code, and any equivalents required by the states in which the property is located; and 
  
 (vi) any other instruments, records or correspondence called for hereunder
which have not previously been delivered. 
  
 (d)
Seller’s Deliveries to Buyer. 
  
 (i) Deliveries
at Closing. At or before the Closing, Seller shall deliver to Buyer the following: 
  
 a) operating statements for that portion of the current year ending at the end of the calendar month preceding the month in which the Closing Date occurs, provided, however, that if the Closing occurs during the first
fifteen days of a month, the operating statement shall be updated to the end of the calendar month that is two months prior to the Closing; 
  
 b) a Rent Roll dated as of the first day of the month in which the Closing Date occurs; 
  
 c) duly executed original Tenant Estoppel Certificates to the extent required hereunder; 
  
 d) one original form notice to the Tenants, informing them of this
transaction; and 
  
 e) all keys to the Property. 
  

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 (ii) Deliveries After Closing. Promptly after closing, Seller shall deliver to Buyer the
following, to the extent they have not already been delivered: 
  
 a) Copies of the Contracts listed on Schedule 2; 
  
 b)
originals of the Leases, to the extent available; if an original is not available, Seller shall use best efforts to provide Buyer with a legible copy; and 
  
 c) any other instruments, records or correspondence called for hereunder which have not previously been delivered, to the extent available. 

 
  
 (e) Buyer’s Deliveries to Escrow. At or before the Closing, Buyer shall deliver or cause to be delivered in escrow to the Title Company the following: 
  
 (i) a duly executed Assignment of Leases; 
  
 (ii) a duly executed Assignment of Contracts; and 
  
 (iii) the Cash. 
  
 (f) Deposit of Other Instruments. Seller and Buyer shall each deposit such other instruments as are reasonably required by Title Company or
otherwise required to close the escrow and consummate the transactions described herein in accordance with the terms hereof. 
  
 7. Closing Adjustments and Prorations. With respect to the Property, the following adjustments shall be made, and the following procedures shall be followed:

  
 (a) Basis of Prorations. All prorations shall be
calculated as of 12:01 a.m. on the Closing Date, on the basis of a 365-day year. 
  
 (b) Items Not to be Prorated. There shall be no prorations or adjustments of any kind with respect to: 
  
 (i) Insurance Premiums; 
  
 (ii) Delinquent Rents for Full Months Prior to the Month in which the Closing Occurred. Delinquent rents for full months prior to the month in
which the Closing occurred shall remain the property of Seller, and Buyer shall have no claim thereto whether collected by Seller or Buyer, before or after the Closing, and no responsibility of any kind with respect thereto except as specifically
set forth herein. Seller may take all appropriate collection measures (including litigation if deemed by Seller to be necessary or desirable), except that Seller may not seek any remedy 
  

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 which would interfere with the Tenant’s continued occupancy and full use of its premises under such
Tenant’s Lease, or Buyer’s rights to receive Rent with respect to any period beginning on the Closing Date. In the event that Buyer collects any such delinquent rents, Buyer shall promptly pay such amounts over to Seller in accordance with
the procedures set forth subsection (d) below. The foregoing notwithstanding, in the event that Seller has commenced legal collection proceedings against any Tenant prior to the Closing Date, Seller shall have the right, but not the obligations, to
continue to prosecute such proceedings at its own cost and expense, and to seek any remedy to which it may be entitled. 
  
 (iii) Additional Rents Relating to Full or Partial Months Prior to the Closing Date. If Additional Rents relating to full or partial months prior
to the Closing Date are not finally adjusted between Seller and any Tenant until after the Closing Date, then any refund to which any Tenant may be entitled shall be the obligation of Seller, and any additional amounts due from the Tenant for such
period shall be the property of Seller. Buyer shall have no obligation with respect to any such refund due to any Tenant and no claim to any such amounts due from any Tenant, except that Buyer shall promptly pay to Seller any such delinquent
Additional Rent amounts as it actually collects, in accordance with the procedures set forth in subsection (d) below. In seeking to collect any such amount due from any Tenant, Seller may take all appropriate collection measures (including
litigation, if deemed by Seller to be necessary or desirable), except that, in seeking to collect any such additional amounts due from any Tenant, Seller may not seek any remedy which would interfere with the Tenant’s continued occupancy and
full use of its premises under such Tenant’s Lease, or Buyer’s rights to receive Additional Rent with
respect to any period beginning on the Closing Date. If Seller receives any refund of expenses paid prior to the Closing and relating to a period prior to the Closing, and such expenses were reimbursed in whole or in part by any Tenant, Seller shall
refund to each Tenant its share of any such refund. The foregoing notwithstanding, in the event that Seller has commenced legal collection proceedings against any Tenant prior to the Closing Date, Seller shall have the right, but not the
obligations, to continue to prosecute such proceedings at its own cost and expense, and to seek any remedy to which it may be entitled. 
  
 (c) Closing Adjustments. Prior to Closing, Seller shall prepare for review, comment and agreement by Buyer a proration statement for the Property,
and each party shall be credited or charged at the Closing, in accordance with the following: 
  
 (i) Rents. Seller shall account to Buyer for any Rents actually collected by Seller for the rental period in which the Closing occurs, and Buyer shall be credited for its pro rata share. 
  

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 (ii)Expenses. 
  
 a) Prepaid Expenses. To the extent Expenses have been paid prior to the Closing Date for the rental period in which
the Closing occurs, Seller shall account to Buyer for such prepaid Expenses, and Seller shall be credited for the amount of such prepaid expenses applicable to the period after the Closing Date. 
  
 b) Unpaid Expenses. To the extent Expenses relating to the rental
period in which the Closing occurs are unpaid as of the Closing Date but are ascertainable, Buyer shall be credited for Seller’s pro rata share of such Expenses for the period prior to the Closing date. 
  
 c) Property Taxes. For purposes of this Subsection entitled
“Expenses,” the Title Company shall pro-rate property taxes based on the most recent available tax bills. Property Taxes shall be subject to a post closing adjustment once the actual tax bills are available (to the extent that the same are
not available at Closing for the period in which the Closing occurs), provided, however, that the Buyer shall be solely responsible for any increased taxes resulting from the change in ownership of the Property from Seller to Buyer or resulting from
an increased tax levy based upon the Consideration paid hereunder. 
  
 (iii) Security Deposits. Seller shall deliver to Buyer all prepaid rents, security deposits, letters of credit and other collateral actually held by Seller or any of its affiliates or successors-in-interest under any of the Leases,
to the extent not applied by Seller prior to the Closing Date. 
  
 (d) Post-Closing Adjustments. After the Closing Date, Seller and Buyer shall make post closing adjustments in accordance with the following; 
  
 (i) Non-delinquent Rents. If either Buyer or Seller collects any non-delinquent Rents applicable to the month in which the Closing occurred, such
Rents shall be prorated as of the Closing Date and paid to the party entitled thereto. 
  

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 (ii) Delinquent Rents for month in which the Closing occurred. If either Buyer or Seller collects
from any Tenant Rents that were delinquent as of the Closing Date and that relate to the rental period in which the Closing occurred, then such Rents shall be applied in the following order of priority: First, to reimburse Buyer or Seller for all
out-of-pocket third-party collection costs actually incurred by Buyer or Seller in collecting such Rents (including the portion thereof relating to the period after the Closing Date); second, to satisfy such Tenant’s Rent obligations relating
to the period after the Closing Date; and third, to satisfy such delinquent Rent obligations relating to the period prior to the Closing Date. Seller shall have no right to pursue the collection of such delinquent Rents, except that Seller shall
retain to right to continue to prosecute any collection proceedings that were initiated against any Tenant prior to the Closing Date. 
  
 (iii) Expenses. With respect to any invoice received by Buyer or Seller after the Closing Date for Expenses that relate to the period in which the
Closing occurred, the party receiving such invoice shall give the other party written notice of such invoice, and the other party shall have thirty days to review and approve the accuracy of any such invoice. If the parties agree that the Invoice is
accurate and should be paid, Buyer shall compute Buyer’s pro rata share, write a check for that amount in favor of the vendor, and then send the invoice and check to Seller, in which case Seller agrees that it will pay for its share and forward
the invoice and the two payments to the vendor. 
  
 (iv)
Survival of Obligations. The obligations of Seller and Buyer under the Subsection entitled “Post-Closing Adjustments” shall survive the Closing for a period of ninety (90) days, and all such adjustments shall be made prior to that
time. After that date, all prorations hereunder shall be deemed final for all purposes, and no further adjustments shall be made thereto except as specifically contemplated herein. 
  
 (e) Allocation of Closing Costs. Closing costs shall be allocated as set forth below: 
  
 (i) Escrow charges: 50% to Buyer and 50% to Seller. 
  
 (ii) Recording fees: 50% to Buyer and 50% to Seller. 
  
 (iii) Title insurance premium for base Title Policy: 100% to Seller.
Buyer shall be solely responsible for the costs for extended coverages, endorsements and lender’s title policies requested by Buyer or its lender(s). 
  
 (iv) Transfer taxes: 100% to Seller. 
  
 (v) Survey costs: 100% to Buyer. 
  

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 8. Tenant Estoppel Certificates. Seller shall use all reasonable efforts to obtain a Tenant Estoppel Certificate
from all Tenants, dated no earlier than thirty (30) days prior to the Closing Date, conforming to the most recent Rent Roll and alleging no defaults, offsets, or claims against Seller. Seller shall deliver completed Tenant Estoppel Certificates to
Buyer as they are received by Seller, and shall use all reasonable efforts to deliver all Tenant Estoppel Certificates to Buyer prior the Closing. It shall be a condition to Buyer’s obligation to close the acquisition of the Property that not
later than the Closing Date: 
  
 (a) Seller delivers to Buyer
Tenant Estoppel Certificates from the Required Tenants; or 
  
 (b) To the extent Seller is unable to obtain Tenant Estoppel Certificates, or any items required to be therein, from the Required Tenants, Seller may deliver to Buyer and Buyer shall be obligated to accept, on the Closing Date a
certification in which Seller warrants and represents to Buyer, with respect to such missing Tenant Estoppel Certificates or any missing items required to be included therein, as to all matters that were to be included therein. If Seller is later
able to deliver to Buyer a Tenant Estoppel Certificate from any Tenant as to which Seller has provided a Seller’s Certificate that does not materially differ from the Seller’s Certificate, the Seller’s Certificate as to such Tenant
shall become null and void. 
  
 9. Transfer of Property “As
Is”. Except for representations and warranties made herein, Buyer acknowledges that none of the Seller, any affiliate of the Seller, any of their respective shareholders, partners, members, officers, directors, employees, contractors,
agents, attorneys, nor other representatives of Seller (collectively, the “Seller Related Parties”) have made any verbal or written representations, warranties, promises or guarantees whatsoever to Buyer, whether express or implied, and,
in particular, no such representations, warranties, guaranties or promises have been made with respect to the physical condition or operation of the Property, title to or the boundaries of the Property, soil conditions, the environmental condition
of the Property, including, without limitation, the presence, discovery, release, threatened release or removal of Hazardous Materials (including, without limitation, the presence of asbestos or, asbestos containing materials), the actual or
projected revenue and expenses or the Property, the zoning and other laws, regulations or rules applicable to the Property or the compliance of the Property therewith, the quantity, quality or condition of the articles of personal property and
fixtures included in the transactions contemplated hereby, the use or occupancy of the Property or any part thereof or any other matter or thing affecting or related to the Property or the transactions contemplated hereby, except as, and solely to
the extent, herein specifically set forth. 
  

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 (a) Prior to the Approval Date, Buyer acknowledges that it will have reviewed or have had the opportunity
to review the Due Diligence Materials. 
  
 (b) Buyer further
acknowledges that certain of the Due Diligence Materials may have been prepared by parties other than Seller. 
  
 (c) Buyer acknowledges that it has not relied upon any representations or warranties not specifically set forth herein, and has entered into this
Agreement after having made and relied solely on its own independent investigation, inspections, analyses, appraisals and evaluations of facts and circumstances. 
  
 (d) Except for its reliance on the representations and warranties specifically set forth herein, Buyer agrees to accept
Property “as is” in its present condition, subject to reasonable use, wear and tear but excluding casualty and condemnation, between the date hereof and the Closing Date, and further agrees that except for any breach of its representations
and warranties specifically set forth herein, Seller shall not be liable for any latent defects in the Property or bound in any manner whatsoever by any guarantees, promises, projections, operating statements, setups or other information pertaining
to the Property made, furnished or claimed to have been made or furnished by Seller or any Seller Related Party, whether verbally or in writing. 
  
 (e) Buyer is a sophisticated purchaser, with experience in acquiring, owning and operating real property in the nature of the Property. Buyer is familiar
with the risks associated with sale transactions that involve purchases based on limited information, representations and disclosures. Buyer understands and is freely taking all risks involved in connection with this transaction. 
  
 (f) Buyer acknowledges that, except as specifically set forth herein, Seller
hereby specifically disclaims any warranty or guaranty, oral or written, implied or arising by operation of law, and any warranty of condition, habitability, merchantability or fitness for a particular purpose, in respect to the Property.

  
 (g) Except for those matters expressly set forth in this
Agreement to survive the Closing and except for the agreements of Seller and Buyer set forth in the closing documents or otherwise entered into at the Closing, Buyer agrees that Buyer’s acceptance of the Deed shall be and be deemed to be an
agreement by Buyer that Seller has fully performed, discharged and complied with all of Seller’s obligations, covenants and agreements hereunder and that Seller shall have no further liability with respect thereto. 
  
 (h) As a material inducement to Seller to agree to sell the Property to
Buyer and to execute this Agreement, except to the extent specifically provided to the 
  

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 contrary herein or in the Deed and other instruments to be executed and delivered by Seller at the
Closing, or any action for breach of any representation, warranty and/or covenant of Seller specifically set forth herein, Buyer hereby waives, releases and forever discharges Seller, any affiliate, and their respective shareholders, partners,
members, officers, directors, employees, contractors, agents, attorneys and other representatives (collectively, the “Released Parties”) from all claims, causes of action, demands, losses, damages, liabilities, costs and expenses
(including attorney’s fees and disbursements whether suit is instituted or not) which Buyer has or may have in the future on account of or in any way arising out of (i) the structural and physical condition of the Property or its surroundings,
(ii) the financial condition of the operation of the Property either before or after the Closing Date, (iii) any law, ordinance, rule, regulation, restriction or legal requirement which is now or may hereafter be applicable to the Property and (iv)
the environmental condition of the Property, including, without limitation, the presence, discovery or removal of any Hazardous Materials in, at, about or under the Property or the applicability to the Property of any Environmental Laws, as such
acts may be amended from time to time, or any other federal, state or local statute or regulation relating to environmental contamination at, in or under the Property. Buyer shall not make or institute any claims against any of the Released Parties
which are inconsistent with the foregoing. Buyer agrees that this release shall be given full force and effect according to each of its expressed terms and provisions. This release includes claims of which Buyer is presently unaware or which Buyer
does not presently suspect to exist, which if known by Buyer, would materially effect Buyer’s release to Seller. Buyer hereby waives California Civil Code Section 1542, which provides as follows: 
  
 “A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES
NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN TO HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR.” 
  
 In this connection and to the extent permitted by law, Buyer hereby agrees, represents and warrants that Buyer realizes and
acknowledges that factual matters now unknown to it may have given or may hereafter give rise to causes of action, claims, demands, debts, controversies, damages, costs, losses and expenses which are presently unknown, unanticipated and unsuspected,
and Buyer further agrees, represents and warrants that the waivers and releases herein have been negotiated and agreed upon in light of that realization and that Buyer nevertheless hereby intends to release, discharge, and acquit Seller from any
such unknown causes of action, claims, demands, debts, controversies, damages, costs, losses and expenses. 
  

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 Buyer’s Initials lie

  
 (i) In no event shall Seller be liable for any
incidental, special, exemplary or consequential damages, including, without limitation, loss of profits or revenue, interference with business operations, loss of tenants, lenders, investors, buyers, diminution in value of the Property, or inability
to use the Property, due to the condition of the Property. 
  
 (j) The provisions of this Section shall survive the Closing or any termination of this Agreement. 
  
 10. Seller’s Representations and Warranties. Seller hereby represents and warrants to Buyer the matters set forth on Addendum II, which is incorporated herein by this reference as though fully set forth
herein. Other than as expressly contained in Addendum II, Seller makes no representations or warranties of any kind relating to the Property or its condition or fitness. Buyer is entitled to rely on Seller’s representations and warranties
notwithstanding Buyer’s inspection and investigation of the Property, except to the extent that Buyer has Actual Knowledge on or before the Closing Date that any such representation or warranty is inaccurate, in which case such representation
or warranty shall be deemed modified by Buyer’s Actual Knowledge. 
  
 11.
Buyer’s Representations and Warranties. Buyer hereby represents and warrants as of the Effective Date and as of the Closing Date to Seller as follows: 
  
 (a) To the extent that any permitted assignee of any Buyer is a corporation, partnership, limited liability company or other
form of business entity (“Entity”), such Entity is duly organized, validly existing and in good standing under the laws of the state of its organization, and is qualified to do business in the state(s) where the Property is located.

  
 (b) Buyer has full power and authority to execute and deliver
this Agreement and to perform all of the terms and conditions hereof to be performed by Buyer and to consummate the transactions contemplated hereby. This Agreement and all documents executed by Buyer which are to be delivered to Seller at Closing
have been duly executed and delivered by Buyer and are or at the time of Closing will be the legal, valid and binding obligation of Buyer and is enforceable against Buyer in accordance with its terms, except as the enforcement thereof may be limited
by applicable Creditors’ Rights Laws. Buyer is not presently subject to any bankruptcy, insolvency, reorganization, moratorium, or similar proceeding. 
  
 (c) The individuals executing this Agreement and the instruments referenced herein on behalf of any Entity and its constituent entities, if any, have the
legal power, right and actual authority to bind such Entity as a Buyer to the terms and conditions hereof and thereof. 
  

 14 

 (d) Neither the execution and delivery of this Agreement, the consummation of the transactions
contemplated by this Agreement, nor the compliance with the terms and conditions hereof will (a) violate or conflict, in any material respect, with any provision of any Entity’s organizational documents or to Buyer’s Actual Knowledge any
statute, regulation or rule, or, to Buyer’s Actual Knowledge, any injunction, judgment. order, decree, ruling, charge or other restrictions of any government, governmental agency or court to which any Buyer is subject, and which violation or
conflict would have a material adverse effect on Buyer. Neither Buyer is a party to any contract or subject to any other legal restriction that would prevent fulfillment by Buyer of all of the terms and conditions of this Agreement or compliance
with any of the obligations under it 
  
 (e) To Buyer’s
Actual Knowledge all material consents required from any governmental authority or third party in connection with the execution and delivery of this Agreement by Buyer or the consummation by Buyer of the transactions contemplated hereby have been
made or obtained or shall have been made or obtained by the Closing Date. Complete and correct copies of all such consents shall be delivered to Seller. 
  
 (f) Buyer has made (or will make prior to the Closing Date) an independent investigation with regard to the Property, will have ascertained to its
satisfaction the extent to which the Property complies with applicable zoning, building, environmental, health and safety and all other laws codes and regulations, and Buyer’s intended use thereof, including without limitation, review and/or
approval of matters disclosed by Seller pursuant to this Agreement. 
  
 (g) There is no litigation pending or, to Buyer’s knowledge, threatened, against Buyer or any basis therefor that might materially and detrimentally affect the ability of Buyer to perform its obligations under this Agreement. Buyer
shall notify Seller promptly of any such litigation of which Buyer becomes aware. 
  
 12. Risk of Loss. 
  
 (a) Notice of Loss.
If, prior to the Closing Date, any portion of the Property suffers a Minor or Major Loss, Seller shall immediately notify Buyer of that fact, which notice shall include sufficient detail to apprise Buyer of the current status of the Property
following such loss. 
  
 (b) Minor Loss. Buyer’s
obligations hereunder shall not be affected by the occurrence of a Minor Loss, provided that: (i) upon the Closing, there shall be a 
  

 15 

 credit against the Consideration equal to the amount of any insurance proceeds or condemnation awards
collected by Seller as a result of such Minor Loss, plus the amount of any insurance deductible; or (ii) insurance or condemnation proceeds available to Seller are sufficient to cover the cost of restoration and the insurance carrier has admitted
liability for the payment of such costs. If the proceeds or awards have not been collected as of the Closing, then Seller’s right, title and interest to such proceeds or awards shall be assigned to Buyer at the Closing, together with a credit
against the Consideration in the amount of any insurance deductible. This provision shall not limit any of the Buyer’s repair obligations under the Leases. If there is a Minor Loss and insurance coverage as set forth above is not available,
Buyer shall have the same rights as if it was a Major Loss. 
  
 (c) Major Loss. In the event of a Major Loss, Buyer may, at its option to be exercised by written notice to Seller within twenty (20) days of Seller’s notice to Buyer of the occurrence thereof, elect to either (i) terminate this
Agreement as to the damaged or condemned Property (in which event the Consideration payable hereunder shall be reduced by the fair market value or previously agreed Consideration allocable to such Property, or (ii) consummate the acquisition of the
Property for the full Consideration, subject to the following. If Buyer elects to proceed with the acquisition of the Property, then the Closing shall be postponed to the later of the Closing Date or the date which is five (5) days after Buyer makes
such election and, upon the Closing, Buyer shall be given a credit against the Consideration equal to the amount of any insurance proceeds or condemnation awards collected by Seller as a result of such Major Loss, plus the amount of any insurance
deductible. If the proceeds or awards have not been collected as of the Closing, then Seller’s right, title and interest to such proceeds or awards shall be assigned to Buyer, and Seller will cooperate with Buyer as reasonably requested by
Buyer in the collection of such proceeds or award. If Buyer fails to give Seller notice within such 20-day period, then Buyer will be deemed to have elected to terminate this Agreement as to the damaged or condemned Property. If the Agreement is not
terminated, nothing herein shall limit any of the Buyer’s repair obligations under the Leases. 
  
 13. Seller’s Continued Operation of the Property. 
  
 (a) General. Except as otherwise contemplated or permitted by this Agreement or approved by Buyer in writing, from the Effective Date to the Closing Date, Seller will operate, maintain, repair and lease of the
Property in a prudent manner, in the ordinary course of business, on an arm’s-length basis and consistent with its past practices (and without limiting the foregoing, Seller shall, in the ordinary course, negotiate with prospective tenants and
enter into leases of the Property, enforce leases in all material respects, pay all costs and expenses of the Property, including, without limitation, debt service, real estate taxes and 
  

 16 

 assessments, and maintain insurance and pay and perform loan obligations) and will not dispose of or
encumber the Property or any part thereof, except for dispositions of personal property in the ordinary course of business. 
  
 (b) Actions Requiring Buyer’s Consent. Notwithstanding the above terms of this Section, from Approval Date until the Closing Date, Seller
shall not, without the prior written approval of Buyer, which approval shall not be unreasonably withheld or delayed, take any of the following actions: 
  
 (i) Leases. Execute or renew any Lease; or terminate any Lease; or modify or waive any material term of any Lease; provided, however, that if Buyer
has not responded to Seller’s request for approval of any such action within two (2) business days following written notice specifying the proposed action, Buyer shall be deemed to have approved the Lease action in question; 
  
 (ii) Contracts. Except as otherwise required under this Agreement,
enter into, execute or terminate any operating agreement, reciprocal easement agreement, management agreement or any lease, contract, agreement or other commitment of any sort (including any contract for capital items or expenditures), with respect
to the Property that will survive the Closing or otherwise bind the Buyer after the Closing. 
  
 (c) Cost of Tenant Improvements and Leasing Commissions. In connection with any new leases or modifications of existing Leases entered into between the Effective Date and the Closing, the cost of tenant
improvement work and leasing commissions shall be prorated between Buyer and Seller in proportion to the ratio between the portion of the new lease term prior to the Closing Date and the portion of the new lease term after the Closing Date. Seller
shall be responsible for the cost of tenant improvement work and leasing commissions for all Leases (and amendments thereto) entered into prior to the Effective Date and due and payable six (6) months of the Closing Date, and Seller’s
obligations with respect thereto shall survive the Closing; provided, however, if any Tenant shall exercise an option held by such Tenant under any existing Lease during the period between the Effective Date and the Closing, any obligation for
tenant improvement work and leasing commissions associated with the exercise of such option shall be prorated between Seller and Buyer in proportion to the ratio between the portion of the extended lease term resulting from the exercise of the
option prior to the Closing Date and the portion thereof after the Closing Date. 
  
 14. Non-Consummation of the Transaction. If the transaction is not consummated on or before the Closing Date, the following provisions shall apply: 
  
 (a) No Default. If the transaction is not consummated for a reason other than a default by one of the parties, then
(i) Title Company and each party shall return to the depositor thereof the Earnest Money and all other funds and items which were deposited hereunder; (ii) Seller and Buyer shall each bear one-half of any Escrow cancellation charges. Any return of
funds or other items by the Title Company or any party as provided herein shall not relieve either party of any liability it may have for its wrongful failure to close. 
  

 17 

 (b) Default by Seller. If the transaction is not consummated as a result of a default by Seller,
then Buyer, as its sole and only remedies hereunder, to the exclusion of all other potential remedies, may terminate this Agreement by delivery of notice of termination to Seller, whereupon (A) the Earnest Money shall be immediately returned to
Buyer, and (B) Seller shall pay to Buyer any title, escrow, legal and inspection fees incurred by Buyer and any other expenses incurred by Buyer in connection with its review of the Property and/or the negotiation, documentation and performance of
this Agreement (including, without limitation, environmental and engineering consultants’ fees and expenses), subject to a cap of $25,000, in which case neither party shall have any further rights or obligations hereunder. 
  
 (c) Default by Buyer. If the Closing does not occur as a result of a
default by Buyer, then (i) Buyer shall pay all escrow cancellation charges, (ii) To the extent it has not previously been delivered to Seller, the Title Company shall deliver the Earnest Money to Seller as its full and complete liquidated damages
and its sole and exclusive remedy for Buyer’s default (provided that this provision shall not limit the Seller’s right to enforce Buyer’s obligations pursuant to Section 4(a), 15(f) and 15(1), and to obtain monetary damages from Buyer
pursuant to those provisions above and beyond any amounts collected pursuant to this liquidated damages provision). If the transaction is not consummated because of a default by Buyer, the Earnest Money together with the interest accrued thereon
shall be paid to and retained by Seller as liquidated damages. THE PARTIES HAVE AGREED THAT SELLER’S ACTUAL DAMAGES, IN THE EVENT OF A DEFAULT BY BUYER, WOULD BE EXTREMELY DIFFICULT OR IMPRACTICABLE TO DETERMINE. THEREFORE, BY PLACING THEIR
INITIALS BELOW, THE PARTIES ACKNOWLEDGE THAT THE EARNEST MONEY HAS BEEN AGREED UPON, AFTER NEGOTIATION, AS THE PARTIES’ REASONABLE ESTIMATE OF SELLER’S DAMAGES AND AS SELLER’S EXCLUSIVE REMEDY AGAINST BUYER, AT LAW OR IN EQUITY, IN
THE EVENT OF A DEFAULT UNDER THIS AGREEMENT ON THE PART OF BUYER. Notwithstanding anything to the contrary contained in this Section 14(c), in the event of Buyer’s default or a termination of this Agreement, Seller shall have all remedies
available at law or in equity in the event Buyer or any party related to or affiliated with Buyer is asserting any claims or right to the Property 
  

 18 

 that would otherwise delay or prevent Seller from having clear, indefeasible, and marketable title to the
Property. In all other events, Seller’s remedies shall be limited to those described in this Section 14(c) and Sections 4(a), 15(f) and 15(1) hereof. If Closing is consummated, Seller shall have all remedies available at law or in equity in the
event Buyer fails to perform any obligation of Buyer under this Agreement. 
  

			
	INITIALS: Seller                     	 	Buyer                     

  
 15.
Miscellaneous 
  
 (a) Disclosure of Transaction.
Except as may be permitted in Section 15(n) below, neither party shall publicly announce or discuss the execution of this Agreement or the transaction contemplated hereby without the prior written consent of the other party, which shall not be
unreasonably withheld. Notwithstanding the foregoing, nothing herein shall limit or restrict any public announcement or notification which Seller or its general partner is required to make under the applicable provisions of the Securities Act of
1933, as amended, and the Securities Exchange Act of 1934, as amended and the rules and regulations adopted by the Securities and Exchange Commission thereunder. 
  
 (b) Possession. Possession of the Property shall be delivered to Buyer upon the Closing. 
  
 (c) Force Majeure. Seller’s corporate headquarters are located
in San Mateo, California. If during the term of this Agreement, there occurs a Force Majeure Event (a fire or other casualty, act of God, riot or other civil disturbance, or any other event out of the control of Seller that prevents Seller from
having access to and use of its headquarters facility for the conduct of its operations), Seller shall have the right, exerciseable by written notice to Buyer within five (5) business days of the date of the Force Majeure Event, to extend any period
for Seller’s performance hereunder by an period of time equal to the time that Seller reasonably anticipates that it will be unable to use its headquarters, but not to exceed fourteen (14) days. 
  
 (d) Tax Protest. If as a result of any tax protest or otherwise any
refund or reduction of real property or other tax or assessment relating to the Property during the period prior to Closing, Seller shall be entitled to receive or retain such refund or the benefit of such reduction, less equitable prorated costs of
collection and subject to the rights of tenants under leases as to any such refunds. To the extent any such tax protest or proceedings are ongoing as of the Closing, Seller shall have the right, but not the obligation, to continue to pursue such
protest or proceeding following the Closing, but only to the extent that it applies to the pre-closing tax periods. 
  
  

 19 

  
 (e) Notices. Any
notice, consent or approval required or permitted to be given under this Agreement shall be in writing and shall be deemed to have been given upon (i) hand or confirmed telecopy delivery, (ii) one (1) day after being deposited with Federal Express,
DHL Worldwide Express or another reliable overnight courier service, or (iii) two (2) days after being deposited in the United States mail, registered or certified mail, postage prepaid, return receipt required, and addressed as indicated below, or
such other address as either party may from time to time specify in writing to the other. 
  

			
	If to Buyer:	  	If to Seller:
		
	 	  	Glenborough Properties, L.P.
	 	  	 400 South El Camino, 11th Floor
 San Mateo, CA
94402-1708

	 	  	 Attention: Peter J. Chartz
 Telecopy No. (650)
343-9690

		
	with a copy to:	  	with a copy to:
		
	 	  	 Glenborough Realty Trust Incorporated,
 400 South El
Camino Real, 11th Floor,
 San Mateo, CA 94402-1708

	 	  	Attention: G. Lee Burns, Jr.
	 	  	Telecopy No. (650) 343-7438

  
 (f) Brokers and
Finder. Neither party has had any contact or dealings regarding the Property, or any communication in connection with the subject matter of this transaction through any real estate broker or other person who can claim a right to a commission or
finder’s fee in connection with the transaction contemplated herein, except that Seller has engaged Marcus & Milichap, Ontario, California, and shall be responsible for all obligations due such persons in connection with the transactions
described herein and Buyer has engaged and shall be responsible for all obligations due such broker in connection with the transactions described herein. In the event that any broker or finder perfects a claim for a commission or finder’s fee
based upon any such contact, dealings or communication, the party through whom the broker or finder makes its claim shall be responsible for said commission or fee and shall indemnify and hold harmless the other party from and against all
liabilities, losses, costs and expenses (including reasonable attorneys’ fees) arising in connection with such claim for a commission or finder’s fee. The provisions of this Subsection shall survive the Closing. 
  

 20 

 (g) Successors and Assigns. Subject to the following, this Agreement shall be binding upon, and
inure to the benefit of, the parties and their respective successors, heirs, administrators and assigns. Buyer shall have the right, with notice to Seller, and upon receipt of Seller’s consent, which shall not be unreasonably withheld or
delayed, to assign its right, title and interest in and to this Agreement to one or more assignees at any time before the Closing Date; provided, however that such assignee(s) shall assume all obligations of Buyer, and such assignment and assumption
shall not release Buyer from any obligation hereunder. Seller shall not have the right to assign its interest in this Agreement. 
  
 (h) Amendments. Except as otherwise provided herein, this Agreement may be amended or modified only by a written instrument executed by Seller and
Buyer. 
  
 (i) Governing Law. This Agreement has been
negotiated and executed in San Mateo County, California and the substantive laws of the State of California, without reference to its conflict of laws provisions, will govern the validity, construction, and enforcement of this Agreement. 

 
 (j) Merger of Prior Agreements. This Agreement and the Addenda,
Exhibits and Schedules hereto constitute the entire agreement between the parties and supersede all prior agreements and understandings between the parties relating to the subject matter hereof. 
  
 (k) Time for Performance. Any time deadlines contained herein shall
be calculated by reference to calendar days unless otherwise specifically notes. For notice purposes hereunder, days shall be deemed to end at 5:00 P.M. Pacific Time. In the event that any time periods for performance hereunder fall on a weekend or
legal holiday (either national holiday, California holiday, or official holiday in the state where the Property is located), the date for performance shall be the next following business day. 
  
 (1) Enforcement. If either party fails to perform any of its
obligations under this Agreement or if a dispute arises between the parties concerning the meaning or interpretation of any provision of this Agreement, then the defaulting party or the party not prevailing in such dispute shall pay any and all
costs and expenses incurred by the other party on account of such default and/or in enforcing or establishing its rights hereunder, including, without limitation, arbitration or court costs and attorneys’ fees and disbursements. Any such
attorneys’ fees and other expenses incurred by either party in enforcing a judgment in its favor under this 
  

 21 

 Agreement shall be recoverable separately from and in addition to any other amount included in such
judgment, and such attorneys’ fees obligation is intended to be severable from the other provisions of this Agreement and to survive and not be merged into any such judgment. 
  
 (m) Time of the Essence. Time is of the essence of this Agreement. 
  
 (n) Severability. If any provision of this Agreement. or the
application thereof to any person, place, or circumstance, shall be held by a court of competent jurisdiction to be invalid, unenforceable or void, the remainder of this Agreement and such provisions as applied to other persons, places and
circumstances shall remain in full force and effect. 
  
 (o)
Confidentiality. Buyer and Seller shall each maintain as confidential any and all material or information about the other, or in the case of Buyer and its agents, employees, consultants and contractors, about the Property, and shall not
disclose such information to any third party, except, in the case of information about the Property or the Seller, to Buyer’s investment bankers, lender or prospective lenders, insurance and reinsurance firms, attorneys, environmental
assessment and remediation service firms and consultants, as may be reasonably required for the consummation of this transaction and/or as required by law. 
  
 (p) Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which taken together shall
constitute one and the same instrument. 
  
 (q) Addenda,
Exhibits and Schedules. All addenda, exhibits and schedules referred to herein are, unless otherwise indicated, incorporate herein by this reference as though set forth herein in full. 
  
 (r) Construction. Headings at the beginning of each section and
subsection are solely for the convenience of the parties and are not a part of the Agreement. Whenever required by the context of this Agreement, the singular shall include the plural and the masculine shall include the feminine and vice versa. This
Agreement shall not be construed as if it had been prepared by one of the parties, but rather as if both parties had prepared the same. 
  
 (s) Tax Free Exchange. As an accommodation to Seller, Buyer agrees to cooperate with Seller to accomplish an I.R.C. Section 1031 like kind tax
deferred exchange, provided that the following terms and conditions are met; (i) Seller shall give Buyer notice of any desired exchange not later than five (5) days prior to the Closing Date; (ii) Buyer shall in no way be liable for any additional
costs, fees and/or expenses relating to the exchange; (iii) if, for whatever reason, the 
  

 22 

 Closing does not occur, Buyer shall have no responsibility or liability to the third party involved in
the exchange transaction, if any; and (iv) Buyer shall not be required to make any representations or warranties nor assume or incur any obligations or personal liability whatsoever in connection with the exchange transaction. Seller indemnifies and
agrees to hold Buyer and its partners harmless from and against any and all causes, claims, demands, liabilities, costs and expenses, including attorneys’ fees, as a result of or in connection with any such exchange. Seller shall have the
right, in Seller’s sole and absolute discretion, exercisable by written notice to the Buyer not less than five (5) days prior to the scheduled Closing Date, to extend the Closing for a period of not more than forty-five (45) days to permit
Seller to coordinate its exchange and/or identify exchange property(ies). 
  
 IN WITNESS WHEREOF, the parties have executed this Agreement as of last date listed below next to the signatures of the Seller and Buyer. 
  

			
	Seller
	
	 RANCON REALTY FUND V, a
 California limited
partnership

		
	 	 	 /s/ Daniel L. Stephenson

	By	 	 Rancon Financial Corporation
 General
Partner

	
	Date: 2/25/2005
	
	Buyer
	
	 /s/ Tony Padilla

	Tony Padilla
	
	 /s/ Armada Padilla

	Armada Padilla
	
	Date: 2/18/2005

  

 23 

 First American Title Insurance Company 
  
 The undersigned executes this Agreement for the purposes of acknowledging its agreement to serve as escrow agent in
accordance with the terms of this Agreement and to acknowledge receipt of the Earnest Money from the Buyer. 
  

			
	First American Title Insurance Company
		
	By:	 	 
		
	Its:	 	 

  

 24 

 Addendum I Definitions 
  
 Terms used in this Agreement shall have the meanings set forth below: 
  

	1.	Actual Knowledge of Buyer (or Buyer’s Actual Knowledge.) The knowledge of any Responsible Individual of Buyer, without duty of inquiry; provided that so qualifying
Buyer’s knowledge shall in no event give rise to any personal liability on the part of the Responsible Individual, on account of any breach of any representation and warranty of Buyer herein. Actual Knowledge shall not include constructive
knowledge, imputed knowledge, or knowledge Buyer or such Responsible Party do not have but could have obtained through further investigation or inquiry. 

  

	2.	Actual Knowledge of Seller (or Seller’s Actual Knowledge.) The knowledge of any Responsible Individual of Seller, without duty of inquiry; provided that so qualifying
Seller’s knowledge shall in no event give rise to any personal liability on the part of the Responsible Individual, on account of any breach of any representation and warranty of Seller herein. Actual Knowledge shall not include constructive
knowledge, imputed knowledge, or knowledge Seller or such Responsible Party do not have but could have obtained through further investigation or inquiry. 

  

	3.	Additional Deposit. The sum of Two Hundred Fifty Thousand Dollars ($250,000) that Buyer is required to deposit pursuant to Section 3(a)(i). 

  

	4.	Additional Rents. All amounts, other than Fixed Rents, due from any Tenant under any Lease, including without limitation, percentage rents, escalation charges for real estate
taxes, parking charges, marketing fund charges, reimbursement of operating expenses or common area expenses, maintenance escalation rents or charges, cost of living increases or other charges of a similar nature, if any, and any additional charges
and expenses payable under any Lease. 

  

	5.	Agreement. This Agreement between Seller and Buyer, including all Addenda, Schedules and Exhibits attached hereto and incorporated herein by reference.

  

	6.	Approval Date. 5:00 P.M. Pacific Time on the end of the Due Diligence Period. 

	7.	Assignment of Contracts. An Assignment and Assumption of Service Contracts, Guaranties and Warranties and Other Intangible Property in the form of Exhibit D attached hereto.

  

	8.	Assignment of Leases. An Assignment and Assumption of Leases in the form of Exhibit B attached hereto. 

  

	9.	Bill of Sale. A Bill of Sale in the form of Exhibit C attached hereto. 

  

	10.	Buyer. Tony Padilla and Armida Padilla. 

  

	11.	Buyer’s Conditions Precedent. Conditions precedent to Buyer’s obligation to consummate this transaction, as set forth in the Section entitled “Conditions to
Closing.” 

  

	12.	Cash. Immediately available funds to be paid by Buyer at the Closing, as provided in the Section entitled “Consideration”. 

  

	13.	Closing. The delivery of the Deed and the other documents required to be delivered hereunder and the payment of the Consideration. 

  

	14.	Closing Date. March 15, 2005. 313 v f 06

  

	15.	Consideration. The total consideration to be paid by Buyer to Seller as described in the Section entitled “Consideration.” 

  

	16.	Contracts. The service contracts, construction contracts for work in progress, any warranties thereunder, management contracts, unrecorded reciprocal easement agreements,
operating agreements, maintenance agreements, franchise agreements and other similar agreements relating to the Property. 

  

	17.	Creditors’ Rights Laws. All bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the rights of creditors generally, as well as general equitable
principles whether or not the enforcement thereof is considered to be a proceeding at law or in equity. 

  

	18.	Deed. A grant deed or warranty deed in the form attached hereto as Exhibit A. 

  

	19.	Due Diligence Materials. The materials described in Addendum III. 

	20.	Due Diligence Period. The period expiring on the first to occur of (i) seven (7) days after receipt of the Due Diligence Materials or (ii) February 25, 2005, but in no event
shall such period expire before the Effective Date.. 

  

	21.	Earnest Money. The sum of the Initial Deposit and the Additional Deposit and any interest accrued thereon while held by the Title Company. 

  

	22.	Effective Date. The date this Agreement is signed by Seller. 

  

	23.	Environmental Laws. All federal, state, local or administrative agency ordinances, laws, rules, regulations, orders or requirements relating to Hazardous Materials.

  

	24.	Expenses. All operating expenses normal to the operation and maintenance of the Property, including without limitation real property taxes and assessments; current
installments of any improvement bonds or assessments which are a lien on the Property or which are pending and may become a lien on the Property; water, sewer and utility charges; amounts payable under any Contract for any period in which the
Closing occurs; permits, licenses and inspection fees. Expenses shall not include expenses which are of a capital nature. 

  

	25.	Fixed Rents. The fixed periodic payments under any Lease. 

  

	26.	General Intangibles. All general intangibles relating to design, development, operation, management and use of the Real Property; all certificates of occupancy, zoning
variances, building, use or other permits, approvals, authorizations, licenses and consents obtained from any governmental authority or other person in connection with the development, use, operation or management of the Real Property; all
engineering reports, architectural drawings, plans and specifications relating to all or any portion of the Real Property, and all payment and performance bonds or warranties or guarantees relating to the Real Property; and all of Seller’s
right, title and interest in and to any and all of the following to the extent assignable: trademarks, service marks, logos or other source and business identifiers, trademark registration and applications for registration used at or relating to the
Real Property and any written agreement granting to Seller any right to use any trademark or trademark registration at or in connection with the Real Property. 

  

	27.	Hazardous Materials. Hazardous or toxic materials, substances or wastes, or other materials injurious to human health or the environment. 

	28.	Improvements. All buildings, parking lots, signs, walks and walkways, fixtures and equipment and all other improvements located at or on or affixed to the Land to the full
extent that such items are owned by Seller and constitute realty under the laws of the state in which the Land is located. 

  

	29.	Initial Deposit. The Two Hundred Fifty Thousand Dollars ($250,000) that Buyer has deposited in escrow with the Title Company prior to the execution of this Agreement.

  

	30.	Land. The land described in Schedule 1 attached hereto, together with all appurtenances thereto, including without limitation easements and mineral and water
rights. 

  

	31.	Laws. All Environmental Laws, zoning and land use laws, and other local, state and federal laws and regulations applicable to the Property. 

  

	32.	Leases. The leases listed in the Rent Roll, together with any leases executed between the Effective Date and the Closing Date. 

  

	33.	Lease Rights. All of Seller’s right, title and interest in and to the Leases and any and all guarantees of the Leases. 

  

	34.	Major Loss is defined as any damage or destruction to, or condemnation of, any Real Property as to which the cost to repair, or the value of the portion taken, as the case
may be, exceeds 10% of the Consideration. 

  

	35.	Material Damage. Damage in excess of one percent (1%) of the Consideration suffered by Buyer as a result of any inaccuracy or breach of any representation or warranty or
covenant (on a cumulative basis and not per occurrence) by Seller hereunder. 

  

	36.	Minor Loss is defined as any such damage, destruction or condemnation that is not a Major Loss. 

  

	37.	Permitted Exceptions. The Leases and the exceptions to title approved by Buyer during the Due Diligence Period, pursuant to the title review procedure set forth in the
Agreement. 

  

	38.	Personal Property. All of Seller’s right, title and interest in and to the personal property and any interest therein owned by Seller or held directly for the benefit of
Seller, if any, located on the Real Property and used in the operation or maintenance of the Real Property. 

	39.	Property. The Real Property, together with the Leases, the Personal Property, the General Intangibles and the Contracts. 

  

	40.	Real Property. The Land and Improvements. 

  

	41.	Rent Roll. The list of each of the Leases as of the date of this Agreement, attached hereto as Schedule 3. 

  

	42.	Rents. The fixed periodic rental payments under any Lease. 

  

	43.	Required Tenants. The Tenant currently occupying the Property. 

  

	44.	Responsible Individuals. With respect to Buyer:
                    ; and with respect to Seller: Peter Chartz. 

  

	45.	Seller. Rancon Realty Fund V, a California limited partnership. 

  

	46.	Seller’s Conditions Precedent. Conditions precedent to Seller’s obligation to consummate this transaction, as set forth in the Section entitled “Conditions to
Closing. 

  

	47.	Service Contracts. All Contracts involving ongoing services and periodic payment therefor, as distinguished from franchise agreements, easements, guarantees, warranties and
the like. 

  

	48.	Tenant(s). Each and all tenants as listed on the Rent Roll. 

  

	49.	Tenant Estoppel Certiticates. Tenant estoppel certificates in the form attached hereto as Exhibit F (or on such other form as may be prescribed in any Tenant Lease), to be
provided by Seller as provided in the Section entitled “Tenant Estoppel Certificates.” 

  

	50.	Title Company. First American Title Insurance Company, whose address is: 1737 North First Street, San Jose, CA 95112. 

  

	51.	Title Policy. A policy of standard coverage American Land Title Association Owner’s Policy of Title Insurance, issued by Title Company in the amount of the
Consideration, showing title vested in Buyer subject only to the Permitted Exceptions. 

  
  
  
  
  

 Addendum II 
  
 Seller’s Representations and Warranties Seller 
  
 hereby represents and warrants to Buyer as follows: 
  
 A. Organization and Authorization. 
  
 1. Rancon Realty Fund V is a limited partnership duly organized, validly existing and in good standing under the laws of the State of California, and is
qualified to do business in the state of where the Property is located. 
  
 2. Seller has full power and authority to execute and deliver this Agreement and to perform all of the terms and conditions hereof to be performed by Seller and to consummate the transactions contemplated hereby. This
Agreement and all documents executed by Seller which are to be delivered to Buyer at Closing have been duly executed and delivered by Seller and are or at the time of Closing will be the legal, valid and binding obligation of Seller and is
enforceable against Seller in accordance with its terms, except as the enforcement thereof may be limited by applicable Creditors’ Rights Laws. Seller is not presently subject to any bankruptcy, insolvency, reorganization, moratorium, or
similar proceeding. 
  
 3. The individuals executing this
Agreement and the instruments referenced herein on behalf of Seller and its constituent entities, if any, have the legal power, right and actual authority to bind Seller to the terms and conditions hereof and thereof. 
  
 B. Title Matters 
  
 1. There are no adverse or other parties in possession of the Property, or any part thereof, with the consent of Seller
except Seller and Tenants. No party has been granted by Seller any license, easement, lease, or other right relating to the use or possession of the Property or any part thereof, except Tenants or the matters of record. 
  
 C. Property Condition, Use and Compliance 
  
 1. Compliance with Laws. Except as set forth on Schedule II.C.1., to
Seller’s Actual Knowledge, no Responsible Individual of Seller has received written notice that the use or operation of the Property is in violation of any applicable Laws. 

 2. No Regulatory Proceedings. Except as set forth on Schedule II.C.2., to Seller’s Actual
Knowledge, no Responsible Individual of Seller has received any written notice of any condemnation, environmental, zoning or other land-use regulation proceedings that have been instituted, or are planned to be instituted, which directly identify
any of the Property, nor has any Responsible Individual of Seller received written notice of any special assessment proceedings affecting any of the Property. Seller shall notify Buyer promptly of any such proceedings of which any Seller becomes
aware prior to Closing. 
  
 D. The Leases 
  
 1. Rent Roll. The Rent Roll attached hereto completely and accurately
reflects the material terms and conditions of the Leases in all material respects as of its date. Except as disclosed on the Rent Roll, to the Actual Knowledge of Seller, there are no other Tenants at the Property with Seller’s consent, and no
Rental under any Lease has been collected in advance of the current month. The Rent Roll shall be updated at the Closing to reflect any changes which occur after the Effective Date. 
  
 2. Security Deposits. The Rent Roll sets forth all cash security deposits held by Seller or its immediate predecessor
in interest as to the Property. Neither Seller nor its immediate predecessor in interest as to the Property have received from any Tenant or any other party written notice of any claim (other than for customary refund at the expiration of a Lease)
to all or any part of any security deposit, except as set forth on the Rent Roll and/or the Tenant Estoppel Certificates. 
  
 E. Other Matters 
  
 1. No Litigation. Except as set forth on Schedule II.E.1., there is no litigation pending or, to Seller’s Actual Knowledge, threatened: (i)
against Seller that arises out of the ownership of the Property or that might materially and detrimentally affect the value or the use or operation of any of the Property for its intended purpose or the ability of such Seller to perform its
obligations under this Agreement; or (ii) by Seller against any Tenant. Seller shall notify Buyer promptly of any such litigation of which Seller becomes aware before Closing. 

  
 2. No Contracts for
Improvements. Except as set forth on Schedule II.E.2. and in connection R-ith any new leases executed after
the Effective Date and prior to Closing, at the time of Closing there will be no outstanding written or oral contracts made by a : c i i e r for any improvements to the Property which have not been fully paid for nd Seller shall cause to be
discharged all mechanics and materialmen’s liens arising from any labor or materials furnished to the Property prior to the time of Closing. 
  
 3. Exhibits and Schedules. The Schedules attached hereto, as provided by or on behalf of Seller, completely and correctly present in all material
respects the information required by this Agreement to be set forth therein, provided, however, that as set forth in more detail in the Agreement, Seller makes no representation or warranty as to the completeness or accuracy of any materials
contained in the Schedules that have been prepared by third parties unrelated to Seller. 
  
 4. Seller Not a Foreign Person. Seller is not a “foreign person” within the meaning of Section 1445(l)(3) of the Internal Revenue Code. 
  
 F. Miscellaneous 
  
 1. Timeliness of Representations and Warranties. All representations and warranties set forth Ile: ,’i.1
shall be deemed to be given as of the Effective Date and the Closing Date unic: a Seller otherwise notifies Buyer in writing prior to the Closing. 
  
 2. Materiality L:m tation. Buyer shall not be entitled to any right or remedy for any inaccuracy in or breach of any representation, warranty or
covenant under this Agreement or any conveyance document unless the amount of damages proximately caused thereby exceeds the amount of Material Damage. 
  
 3. Continuation and Survival of Representations and Warranties, Etc. All representations and warranties by the respective parties contained herein
or made in writing pursurni to this Agreement are intended to and shall remain true and correct as of the time or Closing, shall be deemed to be material, and, together with all conditions, c ; , enants and indemnities made by the respective parties
contained herein or made in writing pursuant to this Agreement (except as otherwise expressly limited or expanded by the terms of this Agreement), shall survive the 

  
 execution and delivery this
Agreement and shall survive the Closing for a period of six (6) months afte Closing, or, to the extent the context requires, beyond any termination of this A <r’ :’.~ 1_lent for a period of six (6) months. Any claim for breach of a
representation anti warranty given hereunder must be filed and served within this six month period, c1 be deemed waived and released. 
  
  

 ADDENDUM III 
  
 Due Diligence Materials to be Delivered 
 by Seller to Buyer 
 Chuck E. Cheese 
  
 I. FINANCIAL INFORMATION 
  

	 	•	 	Annual Operating Statements – 2003, 2005 and 2005 YTD Rent Roll, dated February 10, 2005 

  
 II. TITLE & SURVEY 
  

	•	 	Preliminary Title Report, prepared by First American Title, dated December 2004 

  

	•	 	Documentation supporting exceptions to title 

  

	•	 	Tri-City Corporate Centre Plan, dated January 1999 

  
 III. ENVIRONMENTAL REPORTS 
  

	 	•	 	Phase I Report, prepared by Pacific Southwest Group, dated November 1999 

  
 IV. LEASES & TENANT INFORMATION 
  
 I Lease with any/all addendums and amendments 
  

	 	•	 	Hoovers Report – Chuck E Cheese 

  

	 	•	 	Tenant Sales History 

  
 V. OPERATING INFORMATION 
  
 Tri-City Master Maintenance Association – 2005 Budget 
  
 Tri-City Master Maintenance Association #3 – 2005 Budget 

 Exhibit B 
  

ASSIGNMENT AND ASSUMPTION OF LEASES 
  
 THIS ASSIGNMENT AND ASSUMPTION OF LEASES (“Assignment”) dated as of
                    , 2005, is entered into by and between Rancon Realty Fund V, a California limited partnership
                                        
                                        
                     (“Assignor”),
                                        
                                        
                                        
                                        
                                        
         and
                                        
                                        
                                        
                                        
                                        
            
                                       
                                        
                                        
                                        
                                        
                  ,
                                        
                                        
                                        
                                        
                                        
             a
                                        
     (“Assignee”). 
  
 WITNESSETH:

  
 WHEREAS, Assignor is the lessor under certain leases executed
with respect to that certain real property commonly known as
                                        
                             (the “Property”) as more fully described in Exhibit A attached
hereto, which leases are described in the Rent Roll attached hereto as Schedule 1 (the “Leases”); and 
  
 WHEREAS, Assignor has entered into that certain Purchase Agreement (the “Agreement”) by which title to the Property is being transferred to
Assignee; and 
  
 WHEREAS, Assignor desires to assign its interest
as lessor in the Leases to Assignee, and Assignee desires to accept the assignment thereof; 
  
 NOW, THEREFORE, in consideration of the promises and conditions contained herein, the parties hereby agree as follows: 
  

	 	1.	Effective as of the Closing Date (as defined in the Agreement), Assignor hereby assigns to Assignee all of its right, title and interest in and to the Leases, and any guarantees
related thereto. 

  

	 	2.	Except as otherwise set forth in the Agreement, Assignor hereby agrees to indemnify, protect and defend Assignee against, and hold Assignee harmless from any and all cost,
liability, loss, damage or expense, including without limitation, reasonable attorneys’ fees and costs and court costs, arising out of facts or circumstances occurring prior to the Closing Date and arising out of the lessor’s obligations
under the Leases. 

  

	 	3.	Except as otherwise set forth in the Agreement, effective as of the Closing Date, Assignee hereby assumes all of the lessor’s obligations arising after the Closing Date under
the Leases and agrees to indemnify, protect and defend Assignor against and hold Assignor harmless from any and all cost, liability, loss, damage or expense, including without limitation, reasonable attorneys’ fees and costs and court costs,
arising out of facts or circumstances occurring subsequent to the Closing Date and arising out of the lessor’s obligations under the Leases. 

	 	4.	If either party hereto fails to perform any of its obligations under this Assignment or if a dispute arises between the parties hereto concerning the meaning or interpretation of
any provision of this Assignment, then the defaulting party or the party not prevailing in such dispute shall pay any and all costs and expenses incurred by the other party on account of such default and/or in enforcing or establishing its rights
hereunder including, without limitation, court costs and attorneys’ fees and disbursements. Any such attorneys’ fees and other expenses incurred by either party in enforcing a judgment in its favor under this Assignment shall be
recoverable separately from and in addition to any other amount included in such judgment and such attorneys’ fees obligation is intended to be severable from the other provisions of this Assignment and to survive and not be merged into any
such judgment. 

  

	 	5.	This Assignment shall be binding on and inure to the benefit of the parties hereto, their heirs, executors, administrators, successors in interest and assigns.

  

	 	6.	This Assignment shall be governed by and construed in accordance with the laws of the State of California, without reference to its conflicts of laws provisions.

  

	 	7.	This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one and the same instrument.

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

			
	ASSIGNEE	 	ASSIGNOR
	 	 	 RANCON REALTY FUND V, a
 California limited
partnership

		
	 	 	
 Rancon Financial Corporation
     General Partner

  
  

 Exhibit A 
 to Assignment and Assumption of Leases 
  
 Real Property Description 

 Schedule 1 
 to Assignment and Assumption of Leases 
  
 Rent Roll 
  
  

 Exhibit C 
  

BILL OF SALE 
  
 For good and valuable consideration the receipt of which is hereby acknowledged, Rancon Realty Fund V, a California limited partnership
(“Transferor”), does hereby sell, transfer, and convey to
                                        
                                        
            , a
                                        
                             (“Transferee”) all personal property owned by Transferor and
located on or in or used in connection with the Real Property (as defined in that certain Purchase Agreement between Transferor and Transferee) commonly known as including, without limitation, those items described in Schedule 1 attached hereto, and
same are being conveyed free of any lien or encumbrance thereon except as previously disclosed to and accepted by Transferee. 
  
 Dated:                     , 2005 

 

	
	Transferor
	
	 RANCON REALTY FUND V, a
 California limited
partnership

	  

	 Rancon Financial Corporation
 General
Partner

  
  

 Schedule 1 
 to Bill of Sale 
  
 Personal Property 
  
  

 Exhibit D 
  

Assignment and Assumption of Service Contracts, 
 Warranties and Guaranties, and Other General Intangibles 
  
 This Assignment of Service Contracts, Warranties and Guaranties and Other Intangible Property (“Assignment”) is made and entered into as of
                    , 2005, by Rancon Realty Fund V, a California limited partnership (“Assignor”), to
                                        ,
a
                                        
                     (“Assignee”), pursuant to that certain Purchase Agreement (the “Agreement”) between Assignor and Assignee
relating to the real property owned by Assignor and commonly known as the 
  
 For good and valuable consideration, the receipt of which is hereby acknowledged, effective as of the Closing Date (as defined in the Agreement), Assignor hereby assigns and transfers unto Assignee all of its right,
title, claim and interest in and under: 
  
 (a)
all warranties and guaranties made by or received from any third party with respect to any building, building component, structure, fixture, machinery, equipment, or material situated on, contained in any building or other improvement situated on,
or comprising a part of any building or other improvement situated on, any part of that certain real property described in Exhibit A attached hereto including, without limitation, those warranties and guaranties listed in Schedule 1 attached hereto
(collectively, “Warranties”); provided however, that to the extent there are any third party costs and expenses in connection with the assignment of any Warranties, Seller shall not be obligated to assign such Warranties to Buyer unless
Buyer pays all such costs and expenses. 
  
 (b)
all of the Service Contracts listed in Schedule 2 attached hereto; and 
  
 (c) any General Intangibles (as defined in the Agreement). Assignor and Assignee further hereby agree and covenant as follows: 
  

1. Effective as of the Closing Date, Assignee hereby assumes all of Assignor’s obligations under the Service Contracts and agrees to indemnify, protect and defend
Assignor against and hold Assignor harmless from any and all cost, liability, loss, damage or expense, including, without limitation, reasonable attorneys’ fees and costs and court costs, originating on or subsequent to the Closing Date and
arising out of the owner’s obligations under the Service Contracts. Assignor hereby agrees to indemnify, 
  
  

 protect and defend Assignee against and hold Assignee harmless from any and all cost, liability, loss, damage or expense,
including, without limitation, reasonable attorneys’ fees and costs and court costs, originating prior to the Closing Date and arising out of the owner’s obligations under the Service Contracts. 
  
 2. If either party hereto fails to perform any of its obligations under this Assignment or
if a dispute arises between the parties hereto concerning the meaning or interpretation of any provision of this Assignment, then the defaulting party or the party not prevailing in such dispute shall pay any and all costs and expenses incurred by
the other party on account of such default and/or in enforcing or establishing its rights hereunder, including, without limitation, court costs and attorneys’ fees and disbursements. Any such attorneys’ fees and other expenses incurred by
either party in enforcing a judgment in its favor under this Assignment shall be recoverable separately from and in addition to any other amount included in such judgment, and such attorneys, fees obligation is intended to be severable from the
other provisions of this Assignment and to survive and not be merged into any such judgment. 
  
 3. Assignor hereby covenants that Assignor will, at any time and from time to time, upon written request therefor, execute and deliver to Assignee any new or confirmatory instruments which Assignee may reasonably
request in order to fully assign, transfer to and vest in Assignee, and to protect Assignee’s right, title and interest in and to, any of the items assigned herein or to otherwise realize upon or enjoy such rights in and to those items.

  
 4. This Assignment shall be binding on and inure to the benefit of the parties
hereto, their heirs, executors, administrators, successors in interest and assigns 
  
 5. This Assignment shall be governed by and construed and in accordance with laws of the State of California. 
  
 6. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one and the same
instrument. 
  
  

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

					
	ASSIGNEE	 	ASSIGNOR
		
	 	 	 RANCON REALTY FUND V, a
 California limited
partnership

			
	 	 	By:	 	Rancon Financial Corporation General Partner

  

			
	By:	 	  

	Its:	 	  

	 	 	 
	Date:	 	 

 Exhibit A 
 to 
 Assignment and Assumption of Service Contracts, 
 Warranties and Guaranties, and Other General Intangibles 
  
 Real Property Description 

 Schedule 1 
 to  
 Assignment and Assumption of Service Contracts, 
 Warranties and Guaranties, and Other Intangible Property 
  
 Warranties and Guaranties 

 Schedule 2 
 to 
 Assignment and Assumption of Service Contracts, 
 Warranties and Guaranties, and Other Intangible Property 
  
 Service Contracts 

 Exhibit E 
  

Certificate of Transferor 
 Other
Than an Individual 
 (FIRPTA Affidavit) 
  
 Section 1445 of the Internal Revenue Code provides that a transferee of a U.S. real property interest must withhold tax if the transferor is a foreign
person. To inform
                                         ,
a
                                        ,
the transferee of certain real property located at                      , California, that withholding of tax is not required upon the
disposition of such U.S. real property interest by Rancon Realty Fund V, a California limited partnership (“Transferor”), the undersigned hereby certifies the following on behalf of Transferor: 
  

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

  

	 	2.	Transferor’s U.S. employer identification number is ; and 

  

	 	3.	Transferor’s office address is 400 El Camino Real, 11th Floor San Mateo, California 94402 

  
 Transferor understands that this certification may be disclosed to the Internal Revenue Service by Transferee and that any
false statement contained herein could be punished by fine, imprisonment, or both. 
  
 Under penalty of perjury, I declare that I have examined this certificate and to the best of my knowledge and belief it is true, correct and complete, and I further declare that I have authority to sign this document
on behalf of Transferor. 
  
 Dated:
                                        ,
2005 
  

	
	  

	on behalf of:
	
	Rancon Realty Fund V,
	a California limited partnership

 Exhibit F 
  

Form of Tenant’s Estoppel Certificate 

			
	  

	 	 
	  

	 	 (“Buyer”)

	  

	 	 

  

	RE:	Attached Lease (and any amendments) Dated                     , (the
“Lease”), by and between             , as lessor (“Lessor”), and
                    , as lessee (“Lessee”), with respect to certain premises (the “Leased Premises”) located at
                     (address) (the “Property”). 

  
 Ladies and Gentlemen: 
  
 The undersigned hereby acknowledges that Buyer is entering into an agreement to acquire the Property. The undersigned further acknowledges the right of Lessor and Buyer
to rely upon the statements and representations of the undersigned contained in this Certificate and further acknowledges that Buyer will be acquiring the Property in material reliance on this Certificate. 
  
 Given the foregoing, the undersigned Lessee hereby certifies and represents unto Buyer, its
successors and assigns, with respect to the above-described Lease, which is comprised of the following documents in addition to the above referenced Lease: (if any blanks do not apply, simply state “None”): 
  

	1.	Lease Effective. The Lease has been duly executed and delivered by Lessee and, subject to the terms and conditions thereof, the Lease is in full force and effect, the
obligations of Lessee thereunder are valid and binding and there have been no further amendments, modifications or additions to the Lease, written or oral; 

  

	2.	No Default. To the best of Lessee’s knowledge, as of the date hereof: (i) there exists no breach, default, or event or condition which, with the giving of notice or the
passage of time or both, would constitute a breach or default under the Lease; and (ii) there are no existing claims, defenses or offsets against rental due or to become due under the Lease; (iii) The improvements and space required to be furnished
according to the Lease have been duly delivered by Lessor and accepted by Lessee and the Premises are in good condition and not in need of repair as of the date of this certificate except: 

	3.	Entire Agreement. The Lease constitutes the entire agreement between Lessor and Lessee with respect to the Property and Lessee claims no rights with respect to the Property
other than as set forth in the Lease; 

  

	4.	Rent: No Prepaid Rent: Security Deposit. The base rent is per month. Lessor has not, as an inducement, assumed any of the Lessee’s Lease obligations and has made no
arrangements with the Lessee covering free rent, partial rent, rebate of rental payments or any other type of rental concession except: No deposits or prepayments of rent have been made in connection with the Lease, except as follows: (describe as
security deposit any interest accrued thereon or rental prepayment); 

  

	5.	Term. The Start Date was ; the Lease Term ends on 

  

	6.	Sublet or Assignment. Except as set forth below, the Lessee has not sublet or assigned any portion of the Premises and no person or firm other than Lessee and its employees
is in possession of any portion of the Premises: 

  

	7.	Options or Expansion Rights. The Lessee has no option, right of first refusal or other right to purchase the Property or any portion thereof, or any rights to expand or
contract the size of the Premises, or to renew or extend the Lease except: 

  

	8.	Ratification. Lessee, effective as of the date of the transfer of title to the Property to Buyer or its assignee, ratifies and confirms the Lease and the tenancy created
pursuant to the terms thereof and recognizes Buyer or its assignee as the lessor thereunder. 

  
 LESSEE. 
  

			
	 By:
	 	  

	 	 	(print name)
	 	 	(print title) Dated:
	 	 	

		
	 Its:
	 	  

 Exhibit F.1 
  
 Form of Seller Certificat 
  

			
	  

	 	 (“Buyer”)

	  

	 	 
	  

	 	 

  

	RE:	Attached Lease (and any amendments) Dated                     , (the
Lease”), by and between                     , as lessor (“Lessor”), and
                     as lessee (“Lessee”), with respect to certain premises (the “Leased Premises”) located at
                     ,
                     (address) (the “Property”). 

  
 Ladies and Gentlemen: 
  
 The undersigned (“Seller”) hereby acknowledges that Buyer is entering into an agreement to acquire the Property. The undersigned further
acknowledges the right of Buyer to rely upon the statements and representations of the undersigned contained in this Certificate and further acknowledges that Buyer will be acquiring the Property in material reliance on this Certificate. This
Certificate shall survive the Buyer’s acquisition of the Property for a period of six (6) months from the Closing. Any undefined terms herein shall have the same meaning as set forth in the Purchase Agreement between the undersigned and the
Buyer. 
  
 Given the foregoing, the undersigned hereby certifies
and represents unto Buyer, its successors and assigns, with respect to the above-described Lease, which is comprised of the following documents in addition to the above referenced Lease: (if any blanks do not apply, simply state “None”):
                                        

  
 1. Lease Effective. To the
Seller’s Actual Knowledge of Seller, the Lease has been duly executed and delivered by Lessee and, subject to the terms and conditions thereof, the Lease is in full force and effect, the obligations of Lessee thereunder are valid and binding.
There have been no further amendments, modifications or additions to the Lease, written or oral; 
  
 2. No Default. To Seller’s Actual Knowledge, as of the date hereof: (i) there exists no breach, default, or event or condition
which, with the giving of notice or the passage of time or both, would constitute a breach or default under the Lease; and (ii) there are no existing claims, defenses or offsets against rental due or to become due under the Lease; (iii) The
improvements and space required to be furnished according to the Lease have been duly delivered by Lessor and accepted by Lessee and the Premises are in good condition and not in need of repair as of the date of this certificate except: 

 3. Entire Agreement. The Lease constitutes the entire agreement between Lessor and
Lessee with respect to the Property and Lessee claims no rights with respect to the Property other than as set forth in the Lease; 
  
 4. Rent: No Prepaid Rent: Security Deposit. The base rent is per month. Lessor has not, as an inducement, assumed any of the
Lessee’s Lease obligations and has made no arrangements with the Lessee covering free rent, partial rent, rebate of rental payments or any other type of rental concession except
                                        .
No deposits or prepayments of rent have been made in connection with the Lease, except as follows:
                                        
(describe as security deposit, any interest accrued thereon, or rental prepayment); 
  
 5. Term. The Start Date was ; the Lease Term ends on 
  
 6. Sublet or Assignment. Except as set forth below, the Lessee has not sublet or assigned any portion
of the Premises with the consent of Seller and to Seller’s Actual Knowledge no person or firm other than Lessee and its employees is in possession of any portion of the Premises: 
  
 7. Options or Expansion Rights. The Lessee has no option, right of first refusal or other right to
purchase the Property or any portion thereof, or any rights to expand or contract the size of the Premises, or to renew or extend the Lease except: 
  

			
	 RANCON REALTY FUND V, A
 California limited
partnership

		
	By:	 	Rancon Financial Corporation General Partner

  
 Dated: 

 Schedule 1 
 Description of Land 
  
 See
attached 

	
	 Order Number:

	 NCS-135603-SC

	Page Number: 7

  
 LEGAL
DESCRIPTION 
  
 Real property in the City of San Bernardino, County of San
Bernardino, State of California, described as follows: 
  
 PARCEL 1 OF PARCEL MAP
NO. 11370 RECORDED IN BOOK 127, PAGE 3 OF PARCEL MAPS, RECORDS OF SAN BERNARDINO COUNTY, CALIFORNIA. 
  
 APN: 0281-361-11-0-000 
  
 First
American Title Insurance Company 

 Schedule 2 
  
 Contracts 
  
 None 

 Schedule 3 
  
 Rent Roll 
  
 See attached 

 Rent Roll for Chuck E. Cheese As of Feb 17, 2005 
  

									
	 	  	 	  	 	  	 	  	                     MO
Yr

	 	  	Pro	  	Lease Lease	  	                 Lease Doc Lease STS
Suite

	 	  	Charge	  	Charge Amt Amt	  	                 Rent
Lease

	PropertylD Suite RSF LSF USF Recovery Rata Corporate Name Start Renewal End Type Type Lease STS Type Start Date End Date Amount LSF LSF Date
	 	  	 	  	Increase Deposit	  	 
	PCHUCKCIU 777 12,200 12,200 12,200	  	CEC Entertainment Inc. 6/7/2003 6/30/2018 TNT NEW ACT ACT CAM
	 	  	1/1/2005 3/31/2018 1,467.00 0.12 1.44 3/21/2003 10,833.33
	 	  	 	  	 	  	    TAX 111/2005 3/31/2018 3,555.00 0.29 3.50
	3/21/2003 (10,833.33)	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	    INS 1/1/2005 6/30/201821.00 0.00 0.02 6/7/2003
	 	  	 	  	 	  	 	  	10,833.33
	 	  	 	  	 	  	 	  	    BRE 6/7/2003 6/6/2008 10,833.33 0.89 10.66
	6/7/2008	  	 	  	 	  	 	  	11,916.67
	 	  	 	  	 	  	 	  	6/7/2013 13,108.33        
	 12,200 12,200 12,200
	  	 15,876.33                                   
 
 0.00                                      
        

  

											
	OccupancyNacancy Summary	  	 	 	Charge Summary	  	 	  	 	  	 
	Vacant RSF&nbsp;	  	0.0 %	 	Charge Type Amount Billed $ / mo Billed Suites RSF $ / mo Project RSF
	Count Vacant&nbsp;	  	0.0 %	 	BRE	  	$10,833.33$0.89	  	12,200	  	$0.89
	Occupiedt RSF 12,200	  	100.0 %	 	CAM	  	$1,487.00$0.12	  	12.200	  	$0.12,
	Count Occupied 1	  	100.0 %	 	INS	  	$21.00$0.00	  	12,200	  	$0.00
	 	  	TAX	 	$3,555.00 $0.29	  	12,200	  	$0.29	  	 
	 	  	 	 	$15,876.33	  	 	  	 	  	 

 Schedule II.C.1. 
  
 Violations 
  
 None 

 Schedule II.C.2. 
  
 Proceedings 
  
 None 

 Schedule II.E.1. 
  
 Litigation 
  
 Litigation Against Seller 
  
 None 
  
 Litigation by Seller or Seller’s Agent Against Any 
  
 Tenant None 

 Schedule II.E.2 
  
 Contracts for Improvements 
  
 None 

 Exhibit A 
 to Grant Deed 
  
 Real
Property Description 

 Exhibit A 
 to Grant Deed 
  
 Real
Property Description 

 Exhibit A Deed RECORDING 
  
 REQUESTED BY: 
  
 First American Title Insurance 
 Company Escrow No.                      
  
 WHEN RECORDED RETURN 
  
 TO, AND MAIL TAX 
  
 STATEMENTS TO: 
  

 (Space above this line for Recorder’s use)  
  
 GRANT DEED 
  
 APN: 
  
 FOR VALUABLE CONSIDERATION, receipt of which is
hereby acknowledged, Rancon                      Realty
                     Fund                     V,
a California limited partnership, hereby grants to                     , a
                     , the real property located in the City of Temecula, County of Riverside, State of California, more particularly
described on Exhibit A attached hereto. 
  
 Executed as of this
     day of                     , 2005. 
  

			
	 GRANTOR: RANCON REALTY FUND V,
 a California limited partnership

		
	 By
	 	 Rancon Financial
 Corporation, General
 PartnerSupply Agreement

 Exhibit 10.1 
  
 Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the information subject to the
confidentiality request. Omissions are designated as [*]. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission. 
  
 SUPPLY AGREEMENT 
  
 This Supply Agreement (hereinafter referred to as the “Agreement”) is entered into this 7th day of March, 2005 (the “Effective Date”),
by and between Cambrex Bio Science Walkersville, Inc. (“Seller”), with offices located at 8830 Biggs Ford Rd., Walkersville, MD 21793, USA and Xcyte Therapies, Inc. (“Buyer”), with offices located at 1124 Columbia Street, Suite
130, Seattle, WA 98104. 
  
 Now, therefore, for good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: 
  

	1.	Product 

  
 Seller agrees to sell and Buyer agrees to purchase the materials specified in Exhibit A (the “Materials”) under the terms and conditions of this
Agreement. 
  

	2.	Quality and Warranties 

  

	 	a.	Seller shall supply the Materials in accordance with the Quality Assurance Agreement (the “QA Agreement”) signed by the parties and in accordance with the
specifications contained in Exhibit B, which shall include a functional test for the Materials to be performed by both parties that may be amended and/or updated from time to time upon mutual agreement of the parties (the “Functional
Testing”), and any other specifications which the parties may mutually agree to in writing (the “Material Specifications”). Seller guarantees and warrants that at the time of delivery of the Materials to the Buyer designated delivery
location, Materials shall comply with the applicable Material Specifications, and any laws, regulations, or statutes then applicable to the production of Materials, such as but not limited to cGMP (current good manufacturing practice) guidelines and
ISO 9001 (2000). 

  

	 	b.	All Materials purchased by Buyer shall, prior to shipment, be inspected, tested and approved by Seller as satisfactory and meeting all applicable Material Specifications.
Seller shall provide to Buyer a certification of analysis and/or conformance with each shipment that verifies that the Material(s) meets all applicable Material Specifications. Promptly after the Effective Date, Seller shall confirm in writing with
Buyer the validated lot size of the Materials, and shall not change such lot size without the prior written consent of Buyer. Seller shall promptly notify Buyer of any discrepancies or nonconformance of raw materials known to Seller to be used in
the production of the Materials (including but not limited to information relating to the operation of the aseptic filling suite). 

  

	 	c.	Upon request from Buyer, Seller shall fully cooperate in a site audit by any representatives of Buyer to assess and ensure adequate quality assurance systems in accordance
with FDA’s Quality System Regulations at 21 C.F.R. Part 820 and ISO 9001 (2000) in connection with the Materials. Buyer shall provide reasonable advance notice to Seller of such audit and conduct the audit during normal business hours at
mutually agreed upon times. Buyer shall limit such audits to no more than once every 12 months unless Buyer reasonably determines there are quality issues or discrepencies that warrant additional audits. If Buyer observes a condition during an audit
which reasonably causes it to believe that the Materials are not being manufactured in accordance with regulations as set forth in FDA’s Quality System Regulations at 21 C.F.R. Part 820, ISO 9001 (2000) or the Materials Specifications, Seller
shall address the concerns and provide necessary modifications required to bring the facilities and production procedures into such compliance. 

  

	 	d.	Should Buyer request Seller to provide proof of production, such as the certificate of analysis, of the Materials to a regulatory authority, Seller shall reasonably cooperate
and supply available information in response to such request. Buyer shall reimburse any direct and reasonable costs incurred by Seller in complying with such request. 

  

	 	e.	Seller shall use commercially reasonable efforts to notify Buyer in advance of any supply shortage to allow Buyer enough time to identify an alternate supplier, and, in the
event that Seller is unable to supply Materials to Buyer for more than a six month period, Seller shall cooperate in good faith with Buyer and any such alternate supplier to assist Buyer in securing an alternative means of supply, provided that any
such alternative supplier enters into a confidentiality agreement with Seller upon terms and conditions reasonably satisfactory to Seller. In the event Seller’s primary manufacturing location becomes incapable of producing the Materials, Seller
will use commercially reasonable efforts to produce the Materials in an alternative cGMP facility, with Buyer’s prior written consent. 

  

	 	f.	THE WARRANTIES IN THIS ARTICLE ARE EXCLUSIVE AND IN LIEU OF ALL OTHER WARRANTIES WHETHER STATUTORY, EXPRESS OR IMPLIED (INCLUDING ALL WARRANTIES OF MERCHANTABILITY AND
FITNESS FOR PARTICULAR PURPOSE AND ALL WARRANTIES ARISING FROM COURSE OF DEALING OR USAGE OF TRADE). 

  

	3.	Orders, Forecasts and Price 

  

	 	3.1	Purchase Orders 

  
 Buyer must submit a written purchase order(s) (the “Purchase Order(s)”) to Seller for Buyer’s requirements of Materials. Buyer acknowledges
that Seller’s typical manufacturing cycle time from the date of receipt and acceptance of a Purchase Order is [*], meaning that from the time the Purchase Order is received and 

  

	[*]	Certain information on this page has been omitted and filed separately with the Securities & Exchange Commission. Confidential treatment has been requested with respect to the
omitted portions. 

 
accepted by Seller, it will be a minimum of [*] before the manufacture of the quantity of Materials covered by a Purchase Order is complete. Any Purchase
Order that Buyer wishes to place with Seller shall be submitted by post/regular mail, facsimile or any other mutually agreed upon manner. Seller shall send its written confirmation of receipt of each Purchase Order from Buyer within seven (7) days
from the date of receipt by Seller of the Purchase Order. If Buyer claims that no such confirmation was received, and Seller is able to demonstrate from its records that one was sent, then the Purchase Order(s) shall be considered accepted.
Seller’s failure to notify Buyer of Seller’s rejection of a Purchase Order shall constitute Seller’s acceptance of such Purchase Order. Each Purchase Order submitted by Buyer must contain a proposed delivery date. If Seller is unable
to meet the proposed delivery date contained in the Purchase Order, Seller will duly note such in its confirmation of receipt of the Purchase Order, and Seller and Buyer will agree on a new delivery date in writing. Each Party shall have the right
to require correction of obvious calculation and typing errors in the Purchase Order(s). 
  

	 	3.2	Price 

  
 The initial price of the Materials during the term of this Agreement shall be as listed on Exhibit A. An increase of [*] shall be permitted on January 1 of every other year during the term of this Agreement, beginning
January 1, 2006. If Seller’s raw material costs associated with the supply of Materials increase or decrease by more than [*] from the cost of such raw materials as of the Effective Date (as substantiated by Seller), and such change is due to
reasons beyond the control of both parties, a reasonable adjustment to account for such change (downward or upward, as applicable) will be made to the Materials price so long as such price is agreed upon by both parties in writing as being
reasonable based on the change in raw materials costs. 
  

	 	3.3	Forecasts 

  
 In addition to the submission of Purchase Orders, Buyer may, in its sole discretion and on a quarterly basis, provide Seller with a [*] rolling forecast of Buyer’s Materials requirements during the forthcoming
[*] period. Should Buyer wish to submit such forecasts, Seller shall confirm each such forecast in writing within ten (10) business days after receipt by Seller. If Seller is not able to confirm the total quantity requirement as detailed in the
forecast, Seller shall, within the same ten (10) day time period, confirm the quantity that it is able to confirm at that time and give Buyer an early warning notice that it may be unable to meet the rest of the quantity requirements. Seller agrees
that any forecast provided by Buyer is a non-binding estimate based on Buyer ́s assumptions at the time of submission of such forecast. However, if the quantity requirements of a forecast, or any portion of the quantity requirements, have been
confirmed by Seller, the confirmed portion of such forecast shall becomes binding [*] before the forecasted delivery date for such quantity of Materials. All forecasts, whether binding or non-binding, are subject to Buyer’s submission of
Purchase Orders. 
  

	[*]	Certain information on this page has been omitted and filed separately with the Securities & Exchange Commission. Confidential treatment has been requested with respect to the
omitted portions. 

	 	3.4	Cancellation of Purchase Orders 

  
 Due to the manufacturing cycle time stated in Section 3.1, any cancellation of a Purchase Order by Buyer, which is not based upon a material breach of the
Seller, must be made within 2 weeks of Seller’s receipt of such Purchase Order. If a Purchase Order cancellation, which is not based upon a material breach of the Seller, is received by Seller outside of this timeframe, Buyer will be liable for
the total quantity of Materials covered by such Purchase Order, in accordance with the pricing contained in Section 3.2. 
  

	 	3.5	Alternate Manufacturing Facility 

  
 An affiliate of Seller has an alternate manufacturing location for the Materials at laboratories and manufacturing plant located at Verviers, Belgium. In
the event Seller’s primary manufacturing location at Walkersville, MD becomes incapable of manufacturing the Materials, Seller will use commercially reasonable efforts to manufacture the Materials at such Belgium facility but only with
Buyer’s prior written consent. The Walkersville, MD plant will continue to take responsibility for regulatory and contractual compliance of product manufactured in Belgium, unless otherwise requested by Buyer. If Buyer elects to allow Seller to
manufacture the Materials at such Belgium facility, Seller acknowledges and agrees that Seller shall be responsible for the shipping and importation costs to the extent such costs are in excess of the shipping costs if such Materials had been
shipped from the Walkersville, MD facility to Buyer. 
  

	4.	Shipment, Delivery and Delivery Dates 

  
 The price stated in Section 3.2 is for delivery of Materials by truck. Delivery by any other means will increase the price stated in Section 3.2. Shipment
of the Materials shall be CPT SEATTLE, WASHINGTON, USA (INCOTERMS 2000) including packing. Delivery to any other destination designated by Buyer may increase the price. The delivery date shall be the date stated in the Purchase Order in accordance
with Section 3.1, or such other date as the parties may mutually agree to in writing. 
  

	5.	Inspection and Acceptance 

  
 Buyer shall have the right to request and pre-test any samples of the Materials available prior to lot shipment by Seller to Buyer. Within [*] after
receipt of any delivery of the Materials, Buyer shall inspect and conduct Functional Testing on such delivered Materials to determine whether the Materials meet the warranties contained in Section 2. If, based on such inspection and testing, Buyer
finds more than [*] of the Materials are defective (the “Acceptable Quality Limit”) in any one particular lot shipment, Buyer shall have the right to reject the entire lot shipment. If the number of defective items of Materials falls below
the Acceptable Quality Limit in a particular lot shipment, Buyer shall reject only the specific items found to be defective. Any rejection by Buyer due to failure to meet the 

  

	[*]	Certain information on this page has been omitted and filed separately with the Securities & Exchange Commission. Confidential treatment has been requested with respect to the
omitted portions. 

 
warranties contained in Section 2, including functional product specifications, must be in writing, and if such written notice is not received within such
[*] period, then Buyer is deemed to have accepted that particular shipment of Materials. If Seller disputes a Buyer’s rejection in good faith under this Section 5, the dispute shall be submitted to an arbitrator in accordance with Section
14.11. If Seller does not dispute Buyer’s rejection, or if the arbitrator determines in accordance with Section 14.11 that such rejection is proper, Seller will replace such rejected shipment of Materials or refund to Buyer any sums paid
therefor. In addition, Seller shall be responsible for the costs of all freight and shipping of the Materials back to Seller pursuant to a valid rejection by Buyer in accordance with this Section. Seller shall not be obligated to replace any
Materials hereunder if the Materials’ nonconformance was caused by Buyer’s misuse, neglect, or improper storage. The remedies provided in this Agreement are Buyer’s exclusive remedies for any failure of Seller to comply with the
warranties contained in Section 2. Such remedies shall constitute complete fulfilment of all such liabilities of Seller whether the claims of Buyer are based in contract, in tort (including negligence or strict liability), or otherwise. 

 

	6.	Invoicing and Payment 

  
 Seller shall invoice Buyer at the time of shipment of the Materials. Buyer must pay all invoices net [*] from the date of the invoice. All payments must
be in United States Dollars and must be by wire transfer or check. 
  

	7.	Title and Risk of Loss 

  
 Title and risk of loss shall pass to Buyer when the Materials, together with all documents as required by this Agreement or the QA Agreement to be shipped
with the Materials, have been delivered to Buyer at the destination specified in accordance with Section 4. 
  

	8.	Regulatory 

  
 8.1 To the extent that Buyer determines that applications to and approval from the FDA or other governmental authority are necessary for a product
manufactured by Buyer which incorporates or uses the Materials, Seller will cooperate fully with Buyer by providing available technical information about the Materials to Buyer for incorporation in Buyer’s application (in a manner designed to
protect the confidentiality of any proprietary information, data or materials therein) or by permitting Buyer to cross-reference Seller’s device or drug master file to the extent it makes reference to the Materials. Seller may charge Buyer a
reasonable fee for annual device or drug master file reference and updates and any other assistance provided by Seller under this Section 8.1, provided that Seller give Buyer prior written notice of such fee. 
  

	[*]	Certain information on this page has been omitted and filed separately with the Securities & Exchange Commission. Confidential treatment has been requested with respect to the
omitted portions. 

	 	8.2	Non-U.S. Requirements. 

  
 To the extent that any requirements of European or other non-US authorities are different than those of the U.S. government, the parties may amend the
Material Specifications to bring them into compliance therewith, and agree to negotiate in good faith any modifications to the Material Specifications occasioned by virtue of Buyer’s supply of the Materials to a European or other non-US
country, and any change to the price of Materials necessitated by such modifications.  
  

	 	8.3	Export Control. 

  
 Each party shall not export or re-export, either directly or indirectly, any technical data relating to the Materials, incorporating Confidential
Information or any direct product of the technical data (the Materials) in contravention of any laws or regulations of the United States, including but not limited to the United States Export Administration Act of 1979 as amended, the Trading With
the Enemy Act, and the regulations of the U.S. Departments of Commerce, Defense, State, Energy and Treasury pursuant thereto. 
  

	 	8.4	Notice; Critical Changes. 

  
 Seller must provide Buyer with [*] written notice prior to making any Critical Changes directly or indirectly related to the Materials. All other material
changes affecting the Materials shall require 90 days’ written notice to the Buyer. A “Critical Change” shall be defined as [*]. 
  

	9.	Indemnification and Limitation of Liability 

  
 Each party agrees to defend, indemnify and hold the other party, its employees, agents, and representatives, harmless from any and all, losses, damages,
claims, liabilities, judgments, costs (including but not limited to reasonable attorneys fees), and expenses arising out of or connected with the material breach of this Agreement by such party, except where caused by the sole negligence or wilful
malfeasance of the indemnified party. Seller’s total liability to Buyer for any and all claims under this Agreement shall be limited to the amount paid by Buyer to Seller during the twenty four (24) months preceding the event which gave rise to
such liability. IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER OR ANY OF ITS AFFILIATES FOR ANY CONSEQUENTIAL, INCIDENTAL, INDIRECT, SPECIAL, PUNITIVE OR EXEMPLARY DAMAGES (INCLUDING, WITHOUT LIMITATION, LOST PROFITS, BUSINESS OR GOODWILL)
SUFFERED OR INCURRED BY SUCH OTHER PARTY OR ITS AFFILIATES IN CONNECTION WITH THIS AGREEMENT, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. 
  

	[*]	Certain information on this page has been omitted and filed separately with the Securities & Exchange Commission. Confidential treatment has been requested with respect to the
omitted portions. 

	10.	Hardship and Force Majeure 

  
 If, during the Term of this Agreement, there should be any case of hardship for one of the parties hereto, and, taking into account the interests of both
of them, it would be considered unreasonable to request the affected party’s continued performance, the parties shall use their best endeavours to reach an amicable solution. If an amicable solution for both parties cannot be reached, the
dispute will be submitted to an arbitrator in accordance with Section 14.11. Any and all circumstances beyond the reasonable control of the parties including, but not limited to, acts of God, war, riots, labour disputes, lock-outs, unavoidable
break-downs and acts of authorities, shall release the party hereto affected by such circumstances from its respective obligations under or pursuant to this Agreement for the duration of such contingencies and to the extent of the effects resulting
therefrom. If any such case occurs, the party affected shall inform the other party immediately upon the affected party becoming aware of such circumstances and the affected party shall inform the other party of the presumable duration and extent of
such contingency. Moreover, the party affected shall promptly take care to settle such contingencies so that the performance of the obligations under this Agreement can be resumed as soon as possible. The parties shall endeavour to make up for all
deliveries of Materials not made because of such contingencies. 
  

	11.	Confidential Information 

  
 10.1 During the course of and in connection with this Agreement, one party (the “Disclosing Party”) may provide certain Confidential
Information, as hereinafter defined, to the other party (the “Receiving Party”). “Confidential Information” shall mean any and all information, data, know-how, whether written or otherwise, technical or non-technical, as well as
tangible materials, including without limitation, reagents and materials, samples, models, drawings, assay protocols or diagrams disclosed by the Disclosing Party to the Receiving Party. Receiving Party acknowledges that all Confidential Information
provided to the Receiving Party will be the sole property of the Disclosing Party and shall be treated as Confidential Information. 
  
 10.2 Receiving Party agrees: (i) to only use the Confidential Information for the purposes set forth herein; (ii) to treat the Confidential Information as
it would its own confidential information (but in no event less than a reasonable degree of care); and (iii) not to disclose the Confidential Information to any third-party without the prior written consent of the Disclosing Party; except as
required to be disclosed pursuant to the order or requirement of a court, administrative agency, or other governmental body; provided, however, that the Receiving Party shall provide prompt notice of such court order or requirement to the Disclosing
Party to enable the Disclosing Party to seek a protective order or otherwise prevent or restrict such disclosure, if applicable. 
  
 10.3 The Receiving Party shall be relieved of all obligations under this Section 10 regarding Confidential Information, which the Receiving Party can
demonstrate: (i) was known to the Receiving Party prior to receipt hereunder as set forth in the written records of the Receiving Party; or (ii) at the time of disclosure to the Receiving Party was generally available to the public, or which after
disclosure hereunder, becomes generally available to the public, through no fault of the Receiving Party; or (iii) is hereafter made available to the 

  

 
Receiving Party for use or disclosure by the Receiving Party from any third-party having a right to do so. 
  
 10.4 This Section 10 shall survive for a period of five (5) years from any
termination or expiration of this Agreement. 
  

	12.	Intellectual Property 

  
 Buyer acknowledges that all information surrounding the Materials, including but not limited to, formulations and the processing and manufacturing of
Materials is the proprietary and confidential intellectual property of Seller; provided, however, that the design of the packaging used on the Materials supplied to Buyer hereunder shall be the proprietary and confidential intellectual property of
Buyer. 
  

	13.	Term 

  
 The term of this Agreement shall begin as of the Effective Date and shall terminate ten (10) years from such date (the “Term”). Thereafter, it shall continue for renewal terms of one (1) year each under the
same terms and conditions, unless terminated in writing by giving at least twelve (12) months prior written notice if Seller is the terminating party and at least six (6) months prior written notice if Buyer is the terminating party. 
  

	14.	Misc. 

  

	 	14.1	Assignment 

  
 This Agreement shall be binding on and inure to the benefit of the parties hereto and their successors and assigns. This Agreement and the rights and obligations hereunder may be assigned by Seller to an affiliate of
Seller and/or in connection with an assignment of all or substantially all of the assets of Seller. Buyer shall be entitled to have its rights, benefits and obligations under this Agreement assigned to companies in which it holds a direct or
indirect interest of at least 50%. Buyer shall inform Seller of such an assignment immediately. 
  

	 	14.2	Entire Agreement 

  
 The entire contract and understanding of the parties to this Agreement concerning the subject matter hereof is contained herein. This Agreement supersedes
all prior agreements, representations or understandings of the parties with respect to the subject matter hereof 
  

	 	14.3	Amendments 

  
 Alterations to and amendments of this Agreement, including this clause and the Exhibits hereto, shall only be valid if made in writing and signed by both parties. 
  

	 	14.4	Use of Name 

  
 Neither party shall make use of the establishment of this Agreement or the use of the other party’s name(s) or trademarks or the name(s) of any member of the other party’s staff for publicity or advertising
purposes, except with the prior written consent of authorized representatives of the other party. 
  

	 	14.5	Independent Contractors 

  
 For purposes of this Agreement, neither party shall not be deemed an agent or employee of the other party, and does not have authority to bind the other
party. Rather, each party shall be deemed an independent contractor. 
  

	 	14.6	Partial Invalidity 

  
 In the event that any of the provisions of this Agreement are invalid because they are inconsistent with the applicable law, this shall in no manner
affect the validity of the other provisions of this Agreement. The parties hereto shall be obliged to replace such invalid provisions by new provisions having similar economic effects. 
  

	 	14.7	General Conditions of Sale 

  
 Seller’s general conditions of sale are not applicable to this Agreement. Should there be any conflict between terms contained on Buyer’s
Purchase Order and this Agreement, the terms of this Agreement shall govern. 
  

	 	14.8	Applicable Law 

  
 This Agreement shall be construed in accordance with and be subject to the substantive laws of the State of New York. 
  

	 	14.9	No Waiver 

  
 Any failure of a party to this Agreement to require the other party to comply with any provision of this Agreement shall not be deemed a waiver of such provision or any other provision of this Agreement. 

 

	 	14.10 	Notice 

  
 Any notice required or permitted to be given hereunder shall be mailed by registered or certified mail, with return receipt requested, delivered by hand to the party to whom such notice is required or permitted to be
given hereunder, or sent by facsimile with documentation of successful transmittal. If mailed, any such notice shall be deemed to have been given three (3) days after deposit in the mail/post. If delivered by hand, any such notice shall be deemed to
have been given when received by the party to whom notice is given. If sent via facsimile, any such notice shall be deemed given on the day it is sent. 
  

			
	 If to Buyer:
	  	 Attention: General Counsel
 Xcyte Therapies,
Inc.
 1124 Columbia Street, Ste 130
 Seattle, WA 98104

Facsimile: 206-262-0900

		
	 If to Seller:
	  	 Attention: Roel Gordijn
 Cambrex Bio Science
Walkersville, Inc.
 8830 Biggs Ford Road
 Walkersville, MD
21793
 Facsimile: 301-845-2924

		
	 With a copy to:
	  	 Attention: General Counsel
 Cambrex
Corporation
 One Meadowlands Plaza
 East Rutherford, NJ
07030
 Facsimile: 201-804-9852

  
 Either Party may
change the address to which notice to it is to be addressed by providing notice of such change in accordance with this provision. 
  

	 	14.11 	Arbitration 

  
 A three-member arbitral tribunal in accordance with the arbitration rules of the American Arbitration Association and administered by the American Arbitration Association shall exclusively and finally settle all
disputes resulting from, concerning the validity of or arising in connection with this Agreement. The unsuccessful party shall bear all the costs of the proceedings. Where no party is completely successful, the costs of the proceedings and the costs
and expenses incurred by the parties for the proper conduct of the matter shall be shared proportionately. Arbitration shall take place in Baltimore, Maryland, if Buyer is the party initiating arbitration, and in Seattle, Washington, if Seller is
the party initiating arbitration, and the language of the proceedings shall be English. 
  

 IN WITNESS WHEREOF, the parties have executed this Agreement by and through their duly authorized
representatives as of the date first written above. 
  

									
	 Xcyte Therapies, Inc.
	 	 	 	 Cambrex Bio Science Walkersville, Inc.

					
	By:	 	 /s/ Ronald J. Berenson
	 	 	 	By:	 	 /s/ N. David Eansor

	 Name: Ronald J. Berenson
 Title: President and CEO
	 	 	 	 Name: N. David Eansor
 Title: Vice President

  

  
 Exhibit A 

 
 Materials 
  

							
	 Materials

	  	 Part Code
 /Number

	  	Price

	 
	 Xcyte stimulation medium in a 10L Platinum UltraPAK bag with 10L fill. Minumum batch size [*]
	  	08-430B	  	$	[	*]
	 	  	 	  	 	 	 
	 	  	 	  	 	 	 

  

	[*]	Certain information on this page has been omitted and filed separately with the Securities & Exchange Commission. Confidential treatment has been requested with respect to the
omitted portions. 

  
 Exhibit B 

 
 Materials Specifications

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