Document:

Exhibit 10.38

 

ENTITY TRANSFER

 

 

CONTRIBUTION AND INVESTMENT AGREEMENT

Between

TRT INDUSTRIAL FUND I LLC

DCT INDUSTRIAL FUND II LLC

TRT-DCT INDUSTRIAL JVI GENERAL PARTNERSHIP

and

DCT INDUSTRIAL OPERATING PARTNERSHIP LP

Dated as of December 8, 2006

 

 

CONTRIBUTION AND INVESTMENT
AGREEMENT

 

THIS CONTRIBUTION AND
INVESTMENT AGREEMENT (this “Agreement”),
dated as of December 8, 2006, by and among TRT INDUSTRIAL FUND I LLC (“TRT Partner”), DCT INDUSTRIAL FUND
II LLC (“DCT Partner”), DCT INDUSTRIAL
OPERATING PARTNERSHIP LP (“DCTIOP”),
TRT-DCT INDUSTRIAL JV I GENERAL PARTNERSHIP (the “Partnership”)
and DCTIOP as the sole member on behalf of those certain entities listed on Exhibit A-1 (each a “DCT Affiliate”, and, together with
DCT Partner and DCTIOP collectively the “DCT Parties”
or “Contributor”).

 

RECITALS:

 

A.            The Partnership was formed as a general partnership under
the laws of the State of Delaware on August 31, 2006. In connection with
the continuation of the Partnership, TRT Partner and DCT Partner entered into
that certain Partnership Agreement dated as of September 1, 2006 (the “Partnership Agreement”). All
initially capitalized terms used in this Agreement and not otherwise defined
herein shall have the meaning given to such term in the Partnership Agreement.

 

B.            Certain DCT Affiliates hold title to the properties
listed on Exhibit A-2 and legally
described on Exhibit A-3 both attached
hereto (each a “Property”, and collectively
the “Properties”).

 

C.            As contemplated by the Partnership Agreement, the DCT
Partner will cause the DCT Parties to contribute the Properties to the
Partnership, all of which shall be accomplished by an assignment of the
ownership interests in the fee owing DCT Affiliate on the terms and conditions
hereafter set forth.

 

NOW, THEREFORE, in
consideration of the premises, the mutual covenants set forth herein, and other
good and valuable consideration, the receipt and sufficiency of which the
parties hereby acknowledge, the parties hereto agree as follows:

 

ARTICLE I

PROPERTY

 

SECTION 1.1. Certain Basic Terms.

 

	
  (a)           DCT Partner/DCT Parties Notice
  Address:

  

  c/o DCT Industrial Operating Partnership LP

  518 17th Street

  Suite 1700

  Denver, Colorado 80202

  Attention: Teresa L. Corral

  Telephone: 303/228-2200

  Facsimile: 303/228-2201

  E-mail: tcorral@dctindustrial.com

  	
  With copies to:

  

  Mayer, Brown, Rowe & Maw LLP

  Attn: Milos Markovic

  71 South Wacker Drive

  Chicago, Illinois 60606

  Telephone: 312/701-7202

  Facsimile: 312/706-8505 E-mail:mmarkovic@mayerbrownrowe.com

  

 

 

	
  (b)           TRT Partner Notice Address:

  

  c/o Dividend Capital Total Realty Trust

  518 17th Street

  Suite 1700

  Denver, Colorado
  80202

  Attention: Greg Moran

  Telephone: 303/228-2200

  Facsimile: 303/996-8486

  E-mail: gmoran@dividendcapital.com

  	
  With a copy to:

  

  Heller Ehrman LLP

  Attn: Steven C. Koppell

  Times Square Tower

  7 Times Square

  New York, NY 10036

  Telephone: 212.847.8782

  Facsimile: 212.763.7600

  email: steven.koppel@hellerehrman.com

  

 

	
  (c)

  	
  Property
  Value:

  	
  $5,865,000.00

  
	
   

  	
   

  	
   

  
	
  (d)

  	
  Contributor:

  	
  DCTIOP

  
	
   

  	
   

  	
   

  
	
  (e)

  	
  Closing
  Date:

  	
  December 8,
  2006 (the “Closing Date”).

  

 

SECTION 1.2. Properties. The term “Property” shall mean each of the
Properties owned or leased by the applicable DCT Affiliate to be contributed by
DCT Partner to the Partnership hereunder as a result of the contribution by DCT
Partner of the Ownership Interests (as hereinafter defined) in such DCT
Affiliate, and shall include the following in relation to each Property::

 

(a)           Fee Simple title to,
or as applicable, a leasehold interest in, (i) the land (“Land”) comprising the applicable
Property and (ii) the improvements located thereon (“Improvements”),
together with all rights, privileges, easements, servitudes and appurtences
thereunto belonging or appertaining, including all right, title and interest,
if any, of Contributor in and to oil, gas, mineral and other subterranean
rights, the streets, alleys and rights-of-way adjacent to the Land (the Land
and the Improvements being, collectively, the “Real
Property”).

 

(b)           All right, title and
interest of Contributor in and to all fixtures, furniture, equipment, and other
tangible personal property, if any, owned, directly or indirectly, by Contributor
(the “Personal Property”) presently
located on such Real Property, but excluding any items of personal property
owned by tenants.

 

(c)           All interest of Contributor,
as landlord, in all executed leases under which a tenant occupies or is to
occupy such Property or a portion thereof, and all amendments thereto (all such
leases and all amendments thereto being the “Leases”).

 

(d)           All right, title and
interest, if any, of Contributor in and to all of the following items, to the
extent assignable and, except as provided herein, without warranty (the “Intangible Personal Property”): (i) licenses,
and permits relating to the operation of the Real Property, (ii) the right
to use the name of the Real Property (if any) in connection with the Real Property
(but excluding any tradenames, trademarks or goodwill of the relevant Contributor
or any of their Affiliates), (iii) if still in effect, guaranties and
warranties received by or assigned to Contributor from any contractor,
manufacturer or other person in connection with the construction or operation
of the Property, and

 

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(iv) if
any of the guaranties and warranties described in clause (iii) (the “Contractor Guaranties”) are
unassignable, the beneficial interest of Contributor in such Contractor
Guaranty, to the extent the assignment of such beneficial interest does not
void such Contractor Guaranty.

 

(e)           The Ownership
Interests in the relevant DCT Affiliate that otherwise owns (a) through (d) above.
The term “Ownership Interests” shall mean all of the limited liability company
interests in the relevant DCT Affiliate.

 

ARTICLE II

INSPECTION OF PROPERTIES

 

SECTION 2.1. Property Information. The DCT
Parties have made or will make available to TRT Partner copies of, or access to
with the right to copy, the following (“Property Information”)
for the Property:

 

(a)           copies of the
existing Leases for the Property, a schedule of which is attached hereto
as Exhibit B;

 

(b)           a current rent roll and
aging report for the Property, indicating rents collected, scheduled rents and
concessions, delinquencies, and security deposits held (the “Rent Roll”);

 

(c)           operating statements
for the two previous fiscal years, or such lesser period of ownership as may be
available, and year to date (the “Operating Statements”),
true and complete copies of which are attached hereto as Exhibit C;

 

(d)           a list of Personal
Property, if any, and a list and copies of any, and service or maintenance
agreements, if any, relating to such Property (“Service
Contracts”), a schedule of which is attached hereto as Exhibit D;

 

(e)           a statement
detailing projected cash flow for such Property over ten (10) years (the “Cash Flow Projection”);

 

(f)            a policy of title
insurance for such Property (the “Existing Title Policy”);

 

(g)           a land title survey
for such Property (the “Existing Survey”);
and

 

(h)           all environmental,
engineering or physical condition reports relating to such Property and delivered
to Contributor or its Affiliates by the seller of such Property at the time
such Property was acquired by Contributor or its Affiliates, or obtained by Contributor
or any of its Affiliates at the time such Property was acquired by Contributor or
its Affiliates, or prepared by or on behalf of Contributor or any of its
Affiliates since the date such Property was acquired by Contributor or its
Affiliates, a true and complete listing of which is attached hereto as Exhibit E.

 

Except
as otherwise expressly provided in Section 9, the DCT Parties make
no representations or warranties as to the accuracy or completeness of the
Property Information.

 

3

 

SECTION 2.2. Confidentiality. The Property
Information and all other information, other than matters of public record or
matters generally known to the public, furnished to, or obtained through
inspection of the Property by, TRT Partner, its affiliates, employees,
attorneys, accountants and other professionals or agents relating to the
Property, will be treated by TRT Partner, its affiliates, employees and agents
as confidential, and will not be disclosed to anyone other than on a
need-to-know basis, which persons may include persons or entities considering
an investment, directly or indirectly, in TRT Partner, and to TRT Partner’s
consultants who agree to maintain the confidentiality of such information. The
confidentiality provisions of this Section 2.2 shall not apply to
any disclosures made by TRT Partner as required by law, by court order or in
connection with any subpoena served upon TRT Partner, provided TRT Partner
shall provide the DCT Parties with written notice before making any such
disclosure, and in connection with the enforcement of this Agreement or the
Partnership Agreement. The obligations of the parties under this Section 2.2
are in addition to the obligations of the parties under Section 8.3.

 

SECTION 2.3. “AS-IS” Transaction. Except for
the DCT Parties’ representations and warranties expressly provided herein, and
any representations and warranties contained in any other document or
instrument executed and delivered by any DCT Party at the Closing (“DCT Parties’ Warranties”), the
contribution of the Property to the Partnership will be made without
representation, covenant or warranty of any kind (whether express or implied,
or, to the maximum extent permitted by applicable law, statutory) by any of the
DCT Parties. As a material part of the consideration for this Agreement, TRT Partner
acknowledges and agrees that it will accept the Property on an “as is” and “where
is” basis, with all faults, and without any representation or warranty, all of
which Contributor hereby disclaims, except for DCT Parties’ Warranties. Except
for DCT Parties’ Warranties, no warranty or representation is made by the DCT
Parties as to fitness for any particular purpose, merchantability, design,
quality, condition, operation or income, compliance with drawings or
specifications, absence of defects, absence of hazardous or toxic substances,
absence of faults, flooding, or compliance with laws and regulations including,
without limitation, those relating to health, safety, and the environment. The
provisions of this Section 2.3 shall survive indefinitely the Closing
or termination of this Agreement and shall not be merged into the Closing
documents.

 

ARTICLE III

TITLE AND SURVEY REVIEW

 

SECTION 3.1. Delivery of Title Report. The
DCT Parties have caused to be delivered to TRT Partner prior to the date
hereof, (i) a preliminary report or title commitment (collectively, the “Title Commitment”) issued by
Fidelity National Title Insurance Partnership (the “Title
Company”), covering the Real Property, together with copies of
all documents referenced in the Title Commitment, and (ii) a ALTA-ACSM
Urban survey of the Property (collectively, the “Surveys”)
together with an affidavit of “no change” executed by Contributor addressed to
the Title Company.

 

SECTION 3.2. Title Review and Cure. Contributor
represents and warrants that DCT Affiliate has good and indefeasible fee simple
title to the Property and shall convey the same to the Partnership subject only
to the Permitted Exceptions (as defined below), which title is insured under
the Existing Title Policy.

 

4

 

(a)           In the event the
Title Commitment, as updated to Closing, or the Survey identifies any title
exceptions or defects in title that are unacceptable to TRT Partner (“Title Objections”), TRT Partner
shall notify the DCT Parties of such Title Objections prior to Closing. If the
DCT Parties fail to timely respond to any Title Objection(s), the DCT Parties
shall be deemed to have notified TRT Partner that the DCT Parties have elected
not to cure the Title Objection(s) in question. In the event the DCT Parties
cannot correct such defects by Closing or choose not to correct (or is deemed
to have elected not to correct) such defects, then TRT Partner may accept title
as is without abatement or reduction of Purchase Price or TRT Partner may
cancel this Agreement. Notwithstanding anything herein to the contrary, at or
prior to Closing, Contributor, at its expense, shall (i) release any
mortgage lien secured by the Property and all related financing statements and
other instruments related to such financing, (ii) release any mechanic’s
lien, if any, arising directly from work performed at the request of
Contributor pursuant to a written agreement with Contributor (which liens may
be insured around with the Title Company), and (iii) satisfy all matters
on Schedule C to the Title Commitment that are applicable to Contributor
or its Affiliate (all of the foregoing being herein collectively referred to as
“Mandatory Cure Items”). As used
herein, the term “Permitted Exceptions” means all matters shown in Schedule B
to the Title Commitment, Existing Title Policy or on the Survey, except (i) those
matters, if any, with respect to which TRT Partner timely sends a Title
Objection and that Contributor has agreed in writing to cure prior to Closing
or which are waived by TRT Partner in accordance with this Section 3.2(a),
and (ii) the Mandatory Cure Items.

 

(b)           The Partnership will
purchase a mortgagee title policy (“Mortgagee Title Policy”)
within ninety (90) days after Closing. The Existing Title Policy shall remain
in effect until issuance of the Mortgagee Title Policy. Until the effective
date of the Mortgagee Title Policy, DCTIOP and DCT Partner agree to defend,
indemnify and hold TRT Partner and the Partnership harmless from and against any
claims or encumbrances negatively impacting title to the Real Property not
otherwise identified as Permitted Exceptions that relate to a time period after
the Existing Title Policy and before 11:59PM on December 8, 2006, and
agrees to remove the same from title.

 

SECTION 3.3. Physical and Financial Inspection. The DCT Parties
have provided to TRT Partner, prior to the date of this Agreement, the Property
Information. For a period (the “Inspection Period”)
commencing on the effective date hereof and expiring at the Closing (such date
is herein referred to as the “Inspection Period
Expiration Date”), TRT Partner has had the right to perform a
physical and mechanical inspection, measurement and audit of the Property and
an inspection of all books and records and financial information pertaining
thereto and to perform such other studies and evaluations to determine the
suitability of the Property for the Partnership’s needs, and the DCT Parties
have cooperated with TRT Partner and have furnished to TRT Partner such
information, materials and documents as TRT Partner may reasonably request. The
inspection, audit and measurement of the Property’s operation, condition and
maintenance shall include, without limitation, such environmental and
engineering inspections, reviews and assessments that TRT Partner has deemed
appropriate. If TRT Partner, at TRT Partner’s sole and absolute discretion,
shall find such inspection(s), studies or evaluations to be unsatisfactory for
any reason whatsoever, TRT Partner shall have the right, at its option, to
terminate this Agreement on or before the Inspection Period Expiration Date,
and upon such termination, the Property Information shall be returned to
Contributor, and upon such return of the Property Information, and thereupon the
parties hereto shall have no further liabilities one to the other with respect
to the subject matter of this Agreement, except for the provisions of this
Agreement which expressly survive a termination hereof. TRT

 

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Partner
shall defend, indemnify and hold Contributor harmless from and against any
claims and liabilities asserted against Contributor arising out of TRT Partner’s
inspections; provided, however, the indemnity shall not extend to claims or
liabilities arising out of the discovery of any existing Property condition. This
indemnity shall survive the Closing and any termination of this Agreement.

 

ARTICLE IV

OPERATIONS AND RISK OF LOSS

 

SECTION 4.1. Ongoing Operations and Maintenance.
From the date of this Agreement through the Closing Date or earlier termination
of this Agreement, in relation to each Property (i) Contributor shall
carry on its business and activities relating to such Property, substantially
in the same manner as it did before the date of this Agreement, and (ii) Contributor
shall not sell or encumber such Property or any material portion thereof or
interest therein. At all times prior to the Closing Date, Contributor shall
maintain the Property in good condition and repair, reasonable wear and tear
excepted, operate the Property in accordance with substantially the same
management practices and leasing standards as currently done, and pay in the
normal course of business prior to Closing, all sums due for work, materials or
service furnished or otherwise incurred in the ownership and operation of the
Property prior to Closing.

 

SECTION 4.2. Performance under Leases and Service Contracts.
From the date of this Agreement through the Closing Date or earlier termination
of this Agreement, Contributor will perform its material obligations under the
Leases and Service Contracts and other agreements that may affect the Property.

 

SECTION 4.3. New Contracts. Except for
agreements which can be terminated on not more than thirty (30) days notice
without penalty or termination fee, from the date of this Agreement through the
Closing Date or earlier termination of this Agreement, Contributor will not enter
into any contract that will be an obligation affecting a Property subsequent to
the Closing, without the prior consent of TRT Partner, which shall not be
unreasonably withheld or delayed.

 

SECTION 4.4. Termination of Service Contracts.
From the date of this Agreement through the Closing or earlier termination of
this Agreement, other than in the ordinary course of business, Contributor
shall not terminate any Service Contract without TRT Partner’s prior consent,
which shall not be unreasonably withheld or delayed. Contributor shall notify
TRT Partner of any Service Contract that is terminated by Contributor in the
ordinary course of business.

 

SECTION 4.5. Damage or Condemnation. Risk of
loss resulting from any condemnation or eminent domain proceeding which is
commenced or has been threatened before the Closing, and risk of loss to any
Property due to fire, flood or any other cause before the Closing, shall remain
with Contributor. If before the Closing any Property or any portion thereof
shall be materially damaged, or if any Property or any portion thereof shall be
subjected to a bona fide threat of
condemnation or shall become the subject of any proceedings, judicial,
administrative or otherwise, with respect to the taking by eminent domain or
condemnation, then TRT Partner may elect to exclude such Property from this
Agreement, and Contributor may propose a substitute real property for
consideration as a Property hereunder.

 

6

 

SECTION 4.6. Material Change. If before the
Closing there is an event not covered by Section 4.6 above that
materially reduces the value of any Property, then TRT Partner may elect to
exclude such Property from this Agreement, and the DCT Parties may propose a
substitute real property for consideration as a Property hereunder.

 

SECTION 4.7. Security Deposits. Except in
the ordinary course, Contributor shall not apply any tenant’s security deposit
to the discharge of such tenant’s obligations, without TRT Partner’s consent,
which shall not be unreasonably withheld.

 

SECTION 4.8. Bill Tenants. Contributor shall
timely bill all tenants for all rent billable under Leases and use its
commercially reasonable efforts to collect any rent in arrears.

 

SECTION 4.9. Notice to TRT Partner. Contributor
shall notify TRT Partner promptly of the occurrence of any of the following: (i) a
fire or other casualty causing damage to the Property, or any portion thereof; (ii) receipt
of notice of eminent domain proceedings or condemnation of or affecting the
Property, or any portion thereof; (iii) receipt of notice from any
governmental authority relating to the condition, use or occupancy of the
Property, or any portion thereof, or any real property adjacent to any of the
Property, or setting forth any requirements with respect thereto; (iv) receipt
or delivery of any default or termination notice or claim of offset or defense
to the payment of rent from any tenant; (v) receipt of any notice of
default from the holder of any lien or security interest in or encumbering the
Property, or any portion thereof; (vi) a change in the occupancy of the
leased portions of the Property; or (vii) notice of any actual or
threatened litigation against Contributor or affecting or relating to the
Property, or any portion thereof.

 

ARTICLE V

FIRE OR OTHER CASUALTY

 

SECTION 5.1. Maintain Insurance. Contributor
shall maintain in effect until the Closing Date the insurance policies (or like
policies) now in effect with respect to the Property.

 

SECTION 5.2. Minimal Damage. If prior to the
Closing Date any portion of the Property is damaged or destroyed by fire or
other casualty, and the cost of repair or restoration thereof shall be $500,000
or less (as established by good faith estimates obtained by TRT Partner which
are reasonably satisfactory to Contributor), this Agreement shall remain in
force and Contributor shall commence to repair any such damage prior to
Closing, if possible.

 

SECTION 5.3. Substantial Damage. If prior to
the Closing Date any portion of the Property is damaged or destroyed by fire or
other casualty, and the cost of repair or restoration thereof shall be more
than $500,000 (as established by good faith estimates obtained by TRT Partner
which are reasonably satisfactory to Contributor), TRT Partner may within
thirty (30) days after receipt of notice of said damage or destruction,
terminate this Agreement by giving written notice thereof to Contributor, and
if this Agreement is so terminated, and thereafter neither party shall have any
further liability hereunder thereafter, except for the provisions hereof which
expressly survive a termination of this Agreement. If TRT Partner does not so
terminate this Agreement, it shall remain in full force and effect, and the
provisions of Section 5.4 below shall apply.

 

7

 

SECTION 5.4. Closing After Substantial Damage.
So long as this Agreement shall remain in force under Section 5.2
or 5.3, then (i) all proceeds of insurance collected prior to
Closing, plus the amount of deductible under Contributor’s insurance policy,
shall be adjusted subject to TRT Partner’s approval and participation in any
adjustment, and shall be credited to the Partnership against the Purchase Price
payable by the Partnership at Closing and, in the case of a fire or other
casualty described in Section 5.2, the Purchase Price shall be
further credited by the amount of an uninsured loss which has not been repaired
by Contributor, and (ii) all unpaid claims and rights in connection with
losses shall be assigned to the Partnership at Closing.

 

ARTICLE VI

EXPENSE ALLOCATIONS

 

SECTION 6.1. TRT Partner shall pay for all
recording charges for the Deed and any financing documents relating to TRT
Partner’s financing, any endorsements to the Existing Title Policy, any update
of the Survey and any other costs incurred by TRT Partner in connection with
its inspection of the Property.

 

SECTION 6.2. The following expenses shall be
split between the Partnership and Contributor in accordance with local custom: (i) any
recording fees for the release of liens released by Contributor, (ii) documents
required to effect any cure of Title Objections that Contributor has elected to
cure in accordance with this Agreement and (iii) documentary stamp taxes,
transfer taxes or similar taxes which become payable by reason of the Deed from
Contributor to the Partnership.

 

SECTION 6.3. The parties shall be
responsible for paying their own attorney’s fees in connection with this
transaction. Each of the Partnership and Contributor shall be responsible for
payment of fifty percent (50%) of the escrow fees.

 

ARTICLE VII

CLOSING

 

SECTION 7.1. Closing. The contribution of
the Property to the Partnership (the “Closing”)
shall occur on the Closing Date at such location upon which the parties shall
agree.

 

SECTION 7.2. Conditions to the Parties’ Obligations to Close.
The obligation of the DCT Parties and TRT Partner to consummate the
transactions contemplated hereunder is contingent upon the following:

 

(a)           The other party’s
representations and warranties contained herein shall be true and correct in
all material respects as of the date of this Agreement and the Closing Date;

 

(b)           As of the Closing
Date, the other party shall have performed its obligations hereunder in all
material respects and all deliveries to be made at Closing have been tendered;

 

(c)           The Property will be
in substantially the same condition as existed on the date of the engineering
report listed on Exhibit E
of this Agreement, subject to ordinary wear and tear;

 

8

 

(d)           There shall exist no
material violation of any law, rule or regulation affecting or relating to
the Property or its use, including any environmental law or regulation;

 

(e)           There shall exist no
actions, suits, arbitrations, claims, attachments, proceedings, assignments for
the benefit of creditors, insolvency, bankruptcy, reorganization or other
proceedings, pending or threatened against the other party (including, in the
case of Contributor, each Affiliate) that would materially and adversely affect
the other party’s ability to perform its obligations under this Agreement;

 

(f)            There shall exist
no pending or threatened action, suit or proceeding with respect to the Property
or the other party before or by any court or administrative agency which seeks
to restrain or prohibit, or to obtain damages or a discovery order with respect
to, this Agreement or the consummation of the transaction contemplated hereby;

 

(g)           With respect to each
of the Leases, Contributor shall have delivered to TRT Partner (i) an
estoppel certificate executed by Contributor in the form of Exhibit F hereto (the “Contributor’s Estoppel”) or (ii) a
tenant estoppel in the form of Exhibit G
hereto or the form required by the applicable Lease (each such certificate
being a “Tenant Estoppel”). To the
extent that Contributor’s Estoppels are delivered with respect to any Lease,
such estoppel shall be deemed of no further force or effect upon the delivery
of a Tenant Estoppel from the applicable tenant which is not inconsistent with
the Contributor Estoppel.

 

SECTION 7.3. The DCT Parties’ Deliveries in Escrow.
On or before the Closing Date, the DCT Parties shall cause to be delivered to
Fidelity National Title Insurance Company, the escrowee for the parties (the “Escrow Agent”), the following:

 

(a)           Assignment
Agreements. The Assignment Agreement in the form of Exhibit H attached hereto
executed by the appropriate DCT Parties.

 

(b)           State Law
Disclosures. Such disclosures and reports as are required by
applicable state and local law in connection with the conveyance of direct or
indirect interests in real property;

 

(c)           Certificate
of Non-Foreign Status. A certificate of non-foreign status for Contributor
(and/or the relevant DCT Affiliate) sworn to by Contributor (and/or the
relevant DCT Affiliate); and

 

(d)           Entity
Documents. Such documents as may be necessary to reflect the
Partnership as the sole member of the Ownership Interests.

 

(e)           Original
Leases, Licenses, Service Contracts and Other Personal Property. All
original Leases and licenses, Service Contracts, and other Personal Property,
which may be delivered outside of escrow as otherwise directed by the
Partnership.

 

(f)            Keys. All keys, combinations and security codes for all
locks and security devices on the Property, which may be delivered outside of
escrow as otherwise directed by the Partnership.

 

9

 

(g)           Tenant
Letter. Letters to each tenant advising of the change in ownership
and directing the payment of rent to such party as the Partnership shall
designate, said letter to be in form reasonably acceptable to the TRT Partner,
which may be handled outside of Closing.

 

(h)           Tenant
Estoppel. The DCT Parties shall deliver at Closing either
Contributor’s Estoppels or Tenant Estoppels for each Lease. In addition,
Contributor agrees to cooperate with the Partnership in connection with
delivering to the tenants Subordination, Non Disturbance and Attornment
Agreements (“SNDAs”) which may be required
by the Partnership’s lender.

 

(i)            Contributor’s Authority. Proof reasonably satisfactory to
the Partnership of Contributor’s good standing and authority to enter into this
transaction and proof of existence and authority of the general partner,
manager, member, or officer of the Contributor to act on behalf of Contributor,
which may include, as determined by the Partnership: (i) the certificate
of incorporation or formation of Contributor certified by the Secretary of
State of the state in which Contributor is formed or incorporated as of a
recent date and by an officer of Contributor, (ii) the bylaws or operating
agreement of Contributor, certified by an officer of Contributor, (iii) a
certificate of good standing as of a recent date for Contributor from the
Secretary of State of the state in which Contributor is formed or incorporated.
and (iv) a certificate of an officer from Contributor certifying
resolutions of the board of directors or members approving and authorizing the
execution, delivery and performance by Contributor of this Agreement and the
consummation of the transactions contemplated hereby (together with an incumbency
and signature certificate regarding the officer(s) signing on behalf of
Contributor).

 

(j)            A closing statement
acceptable to Contributor.

 

SECTION 7.4. TRT Partner’s Deliveries in Escrow.
On or before the Closing Date, TRT Partner shall deliver in escrow to the
Escrow Agent the following:

 

(a)           Capital
Contribution. Based on the Property Value and subject to adjustment
pursuant to Article 6, TRT Partner shall contribute cash to the
Partnership, which shall be immediately distributed to DCT, in an amount equal
to its Non-DCX Contribution Percentage (i.e. 90%) as set forth in the
Partnership Agreement.

 

(b)           Agreements.
All agreements, instruments, certificates and other documents required under
this Agreement, and counterparts to the DCT Parties’ deliveries above (to the
extent applicable), executed by TRT Partner.

 

(c)           Authority
Documentation. Such evidence of authority for the transactions
contemplated hereby as shall be required by the Partnership, including (i) the
certificate of existence of TRT Partner certified by the Secretary of State of
Delaware as of a recent date and by its company secretary or assistant
secretary, (ii) the operating agreement of TRT Partner, certified by its
corporate secretary or assistant secretary, (iii) a certificate of good
standing as of a recent date for TRT Partner from the Secretary of State of
Delaware and (iv) a certificate of TRT Partner’s company secretary or
assistant secretary certifying resolutions of the board of directors of TRT
Partner approving and authorizing the execution, delivery and performance by TRT
Partner of this Agreement and the

 

10

 

consummation
of the transactions contemplated hereby (together with an incumbency and
signature certificate regarding the officer(s) signing on behalf of TRT Partner).

 

SECTION 7.5. Partnership Deliveries in Escrow.
On or before the Closing Date, DCT Partner and TRT Partner shall cause the
Partnership to deliver in escrow to the Escrow Agent the following:

 

(a)           Agreements.
All agreements, instruments, certificates and other documents required under
the Partnership Agreement, executed by the Partnership.

 

(b)           Additional
Documents. Any additional documents that may be required for the
proper consummation of the transactions contemplated by this Agreement,
including the Assignment Agreement duly executed by the Partnership.

 

ARTICLE VIII

EXPENSES AND PRORATIONS

 

SECTION 8.1. Prorations. Except as otherwise
expressly provided for in this Agreement, Contributor shall be entitled to all
revenue and shall be responsible for all expenses for the period of time up to
and including the day before the Closing, and the Partnership shall be entitled
to all revenue and be responsible for all expenses for the period of time on
and after the date of Closing. In each such proration set forth below, the
portion thereof applicable to periods beginning on the date of Closing shall be
credited or charged to the Partnership and the portion thereof applicable to
periods ending as of the day before the Closing shall be credited or charged to
Contributor. Net credits in favor of the Partnership shall be deducted from the
balance of the Property Value at the Closing and net credits in favor of
Contributor shall be added to the Property Value to be paid by the Partnership
at the Closing.

 

(a)           Collected
Rent. All collected rent (excluding tenant reimbursements for
Operating Expenses) and other collected income (and any applicable state or
local tax on rent) under Leases in effect on the Closing Date shall be prorated
between Contributor and the Partnership as of the Closing. Contributor shall be
charged with any rent and other income collected by Contributor before Closing
but applicable to any period of time after Closing. The Partnership shall apply
rent, operating expenses and other income from tenants that are collected after
the Closing first to the post Closing costs of collection and then to post
Closing obligations then owing under the Leases, and then remitting the
balance, if any, to Contributor. Any prepaid rents collected by Contributor
before Closing applicable to the period following the Closing Date shall be
paid over by Contributor to the Partnership. The Partnership will make
reasonable efforts, without suit, to collect any rents applicable to the period
before Closing. Contributor may pursue collection as to any rent not collected
by the Partnership within six (6) months following the Closing Date, provided that Contributor shall have no right to terminate
any Lease or any tenant’s occupancy under any Lease in connection therewith.

 

(b)           Operating
Expenses. (i) Contributor, as landlord under the Leases, is
currently collecting from tenants under the Leases (to the extent not paid
directly by tenants) additional rent to cover taxes, insurance, utilities,
common area maintenance and other operating costs and expenses

 

11

 

(collectively,
“Operating Expenses”) in connection
with the ownership, operation, maintenance and management of the Property. At
Closing, Contributor will deliver to the Partnership all such amounts collected
from tenants under the Leases to the extent not paid by Contributor to the
service provider or collecting authority, together with evidence or a
certificate indicating the date(s) to which such reimbursable Operating
Expenses have been paid by such Tenants and the date(s) to which such
reimbursable Operating Expenses have been paid by Contributor to the service
provider or collecting authority. Operating Expenses that are not payable by
tenants either directly or reimbursable under the Leases shall be prorated
between Contributor and the Partnership as of the Closing Date. In connection
with such proration, Operating Expenses for the period prior to the Closing
Date shall be reasonably estimated by Contributor and the Partnership if final
bills are not available, and any final adjusting payments shall be made
pursuant to Section 8.2 below.

 

(c)           Taxes and
Assessments. Real estate taxes and assessments imposed by
governmental authority (“Property Taxes”) that are not yet due and
payable and that are not reimbursable by tenants under the leases as Operating
Expenses shall be prorated between Contributor and the Partnership as of the
Closing Date based upon the most recent ascertainable assessed values and tax
rates. Contributor shall receive a credit for any Property Taxes paid by Contributor
and applicable to any period after the Closing. Contributor shall be charged
for any unpaid Property Taxes owing and applicable to any period before closing
Final adjusting payments shall be made pursuant to Section 8.2,
below.

 

SECTION 8.2. Final Adjustment After Closing.
If final prorations are not made at Closing for any item required to be
prorated under Section 8.1, including Property Taxes, then
Contributor and the Partnership agree to allocate such items on a fair and
equitable basis in a final adjustment to be made promptly after December 31,
2006, to the effect that income and expenses are received and paid by
Contributor and the Partnership on an accrual basis (provided that real
property taxes shall be adjusted on the same basis upon which the Contributor
acquired the Property) with respect to the periods before and after the Closing
Date, respectively. Payments in connection with the final adjustment shall be
due within 30 days of written notice. Contributor shall have reasonable access
to, and the right to inspect, the books of the Partnership. If by way of a
tenant audit of Operating Expenses or otherwise it is determined that a tenant
under a Lease is entitled to reimbursement for an Operating Expense collected
under its Lease, the portion of such reimbursement attributable to the period
prior to the Closing shall be for the account of Contributor and shall be
either paid by Contributor to such tenant or promptly reimbursed by Contributor
to the Partnership if previously paid by the Partnership to such tenant. If any
such tenant audit results in a payment to be made by such tenant and such
payment is attributable to a period prior to the Closing, such payment shall be
for the account of Contributor.

 

SECTION 8.3. Schedule of Prorations. The
parties have endeavored to jointly prepare a schedule of prorations for
the Property no less than five (5) days prior to Closing.

 

SECTION 8.4. Readjustments. The parties
shall correct any errors in prorations as soon after the Closing as amounts are
finally determined. The provisions of this Article 8 shall survive the
Closing.

 

12

 

SECTION 8.5. Tenant Deposits. All tenant
security deposits in Contributor’s possession, as reflected on a final Rent
Roll delivered to the Partnership and not theretofore applied to tenant
obligations under the Leases, shall be credited to the Partnership, at Closing.
The Partnership shall assume Contributor’s obligations related to such tenant
security deposits that are credited to the Partnership. The Partnership will
indemnify, defend, and hold Contributor harmless from and against all demands
and claims made by tenants arising out of the improper failure or refusal of
the Partnership, to refund to a tenant any security deposit of such tenant
credited to the Partnership and will reimburse Contributor for any reasonable
expenses (including all reasonable attorneys’ fees) incurred or that may be
incurred by Contributor as a result of any such claims or demands by tenants. The
Contributor will indemnify, defend and hold the Partnership, harmless from and
against all demands and claims made by tenants arising out of any security
deposits not credited to the Partnership and will reimburse the Partnership,
and for any reasonable expenses (including all reasonable attorneys’ fees)
incurred or that may be incurred by the Partnership, as a result of any such
claims or demands by tenants.

 

SECTION 8.6. Deposits or Bonds. The
Partnership shall be responsible for replacing or crediting to Contributor at
the Closing any other deposits or bonds that may be outstanding relating to any
Property on the Closing Date.

 

SECTION 8.7. Leasing Commissions. Any
leasing commissions that may be owing to brokers in connection with lease
renewals, expansions and extensions that occur in relation to the Property
prior to Closing, to the extent not previously paid by Contributor, shall be
the responsibility of the Partnership. Leasing commissions that may be owing to
brokers under existing commission agreements with Contributor in connection
with renewals, expansions, and extensions that occur after Closing shall, as
between Contributor and the Partnership, be the responsibility of the
Partnership. All existing commission agreements and leasing commissions that
are owing in relation to any Property are set forth on Exhibit I
attached to this Agreement. As between the Partnership and Contributor,
Partnership will assume these existing commission agreements with respect to
leasing activities occurring after Closing.

 

SECTION 8.8. Brokerage Commissions. Except
as expressly stated herein, Contributor and the Partnership represent and
warrant each to the other that they have not dealt with any real estate broker,
sales person or finder in connection with this transaction. If any claim is
made for broker’s or finder’s fees or commissions in connection with the
negotiation, execution or consummation of this Agreement or the transactions
contemplated hereby, each party shall defend, indemnify and hold harmless the
other party from and against any such claim based upon any statement,
representation or agreement of such party.

 

ARTICLE IX

REPRESENTATIONS AND WARRANTIES

 

SECTION 9.1. DCT Parties’ Representations and Warranties.
As a material inducement to TRT Partner and the Partnership to execute this
Agreement and consummate this transaction, each DCT Party represents and
warrants to TRT Partner and the Partnership, that:

 

13

 

(a)           Organization
and Authority. It has been duly organized and is validly existing as
a limited liability company, in good standing in the State of Delaware. It has
the full right and authority and has obtained any and all consents required to
enter into this Agreement and to consummate or cause to be consummated the
transactions contemplated hereby. This Agreement has been, and all of the
documents, to be delivered by it, at the Closing will be, authorized and
properly executed and constitutes, or will constitute, as appropriate, the
valid and binding obligation of it, enforceable in accordance with their terms,
subject to applicable laws of bankruptcy or insolvency and principles of equity.
The execution, delivery and performance of this Agreement by such DCT Party
does not in any material respect (i) violate any decree or judgment of any
court or governmental authority applicable to it or the Property; (ii) violate
any law (or regulation promulgated under any law); (iii) violate or
conflict with, or result in a breach of, or constitute a default under (or an
event with or without notice or lapse of time or both would constitute a
default) under any contract or agreement to which it is a party or (iv) violate
or conflict with any provision of the organizational documents of such DCT
Party or any Affiliate.

 

(b)           Ownership
Interests. Contributor owns 100% of the relevant DCT Affiliate
Ownership Interests free and clear of all liens, claims, security interests and
other encumbrances. Contributor will transfer, assign and deliver to the
Partnership at the Closing good and marketable title to the Ownership
Interests, free and clear of all liens, claims, security interests and other
encumbrances.

 

(c)           Conflicts
and Pending Action. There is no agreement to which any Contributor
is a party or to Contributor’s knowledge binding on any DCT Party which is in
conflict with this Agreement. There is no contingent liability or action or
proceeding pending or, to such DCT Party’s knowledge, threatened against any
Contributor or the Property except as fully disclosed and identified in Exhibit K, including
condemnation or re-zoning proceedings, or against such DCT Party or any of its
Affiliate which challenges or impairs such DCT Party’s ability to execute or
perform its obligations under this Agreement.

 

(d)           Compliance
with Zoning Law. Other than disclosed in the third party diligence
reports delivered by or on behalf of the DCT Parties to TRT Partner, to the DCT
Parties’ knowledge, no changes or alterations have been made to the Property or
any improvements thereon which render the same in violation of any applicable
zoning ordinances.

 

(e)           Rent Roll.
The Rent Roll as attached to this Agreement as Exhibit J
is true, correct and complete in all material respects as of the date hereof
and lists all of the leases and tenancies that affect the Property.

 

(f)            Leases. The schedule of Leases attached to this
Agreement is true, correct and complete.

 

(g)           Violations/Condemnation.
Except as otherwise set forth in Exhibit K,
to its knowledge, (x) there is no litigation or proceedings pending against or
relating to the Property before any court or administrative body or agency and
(y) no notice of any pending or threatened condemnation or eminent domain
proceedings which would affect the Property has been received by any DCT Party.

 

14

 

(h)           Environmental.
Other than disclosed in the third party diligence reports delivered by or on
behalf of any DCT Party to TRT Partner, to DCT Parties’ knowledge, the Property
is not in violation of any existing and applicable law or regulation pertaining
to Hazardous Materials (including Environmental Laws) and are not subject to
any existing, pending or threatened investigation or inquiry by any
governmental or quasi-governmental authority and is not subject to any remedial
action or obligations under any law or regulation pertaining to Hazardous
Materials (including Environmental Laws). The term “Environmental
Laws” includes without limitation the Resource Conservation and
Recovery Act and the Comprehensive Environmental Response Compensation and
Liability Act and other federal laws governing the environment as in effect on
the date of this Agreement together with their implementing regulations and
guidelines as of the date of this Agreement, and all state, regional, county,
municipal and other local laws, regulations and ordinances that are equivalent
or similar to the federal laws recited above or that purport to regulate
Hazardous Materials. The term “Hazardous Materials”
includes petroleum, including crude oil or any fraction thereof, natural gas,
natural gas liquids, liquefied natural gas, or synthetic gas usable for fuel
(or mixtures of natural gas or such synthetic gas), asbestos and asbestos
containing materials and any substance, material waste, pollutant or
contaminant listed or defined as hazardous or toxic under any Environmental
Law.

 

(i)            Service Contracts: The schedule of Service Contracts
attached is true, correct and complete. No written notice of default or breach
by Contributor in the terms of any of such Service Contracts has been received
by the DCT Party. Contributor has performed, and at Closing shall have
performed, all material obligations which it has under said Service Contracts.

 

(j)            Condemnation: There is no condemnation or eminent domain
proceeding pending with regard to any part of the Property, and to the best of
the DCT Parties’ knowledge, no such proceedings are proposed.

 

(k)           No Lawsuits:
Except as otherwise set forth in Exhibit K,
there are no claims, lawsuits or proceedings pending, or to the DCT Parties’
knowledge, threatened against or relating to the Property in any court or
before any governmental agency, except for actions for possession, damages and
or rent, if any, against defaulted tenants as disclosed by Contributor. Notwithstanding
anything in this Agreement to the contrary, the filing or threatened filing of
any claim, lawsuit or proceeding described in this Section 9.1(j)
after the effective date of this Agreement shall not be deemed to be a breach
of this Section so long as (i) Contributor promptly notifies TRT
Partner of such matter, and (ii) such proceeding is either a claim covered
by any Contributor’s insurance or a claim against the Partnership for which the
DCT Parties’ agree to indemnify the Partnership.

 

(l)            FIRPTA. Contributor is not a “foreign person” as such term
is defined in Section 1445(f)(3) of the Internal Revenue Code of
1954, as amended (the “Code”).

 

(m)          Patriot Act.
To each DCT Party’s knowledge, (a) it is in compliance with the
requirements of Executive Order No. 133224, 66 Fed. Reg. 49079 (Sept. 25, 2001)
(the “Order”) and other similar
requirements contained in the rules and regulations of the Office of Foreign
Assets Control, Department of the Treasury (“OFAC”)
and in any enabling legislation or other Executive Orders or regulations in
respect thereof (the Order and such other rules, regulations, legislation, or
orders are collectively called the “Orders”);
and (b) Contributor (i) is not listed on the Specially

 

15

 

Designated
Nationals and Blocked Persons List maintained by OFAC pursuant to the Order
and/or on any other list of terrorists or terrorist organizations maintained
pursuant to any of the rules and regulations of OFAC or pursuant to any
other applicable Orders (such lists are collectively referred to as the “Lists”),
and (ii) is not a Person who has been determined by competent authority to
be subject to the prohibitions contained in the Orders.

 

(n)           ERISA.
Contributor is not an employee pension benefit plan subject to the provisions
of Title IV of ERISA or subject to the minimum funding standards under Part 3,
Subtitle B, Title I of ERISA or Section 412 of the Code or Section 302
of ERISA, and none of its assets constitute assets of any such employee benefit
plan subject to Part 4, Subtitle B, Title I of ERISA under 29 C.F.R. Section 2510.3-101.
Contributor is not a “governmental plan” within the meaning of Section 3(32)
of ERISA and none of its assets constitute assets of any such governmental plan
and are not subject to state statutes regulating investments of and fiduciary
obligations with respect to governmental plans.

 

(o)           No
Insolvency. As of the date hereof, and as of the Closing, (a) Contributor
has not committed an act of bankruptcy, proposed a compromise or arrangement to
its creditors generally, taken any proceeding with respect to a compromise or
arrangement, taken any proceeding to have itself declared bankrupt or wound-up,
or taken any proceeding to have a receiver appointed in connection with its
ownership of the Property, and (b) to Contributor’s knowledge, Contributor
has not had any petition for a receiving order in bankruptcy filed against it,
had any encumbrancer take possession of its interest in the Property, or had
any execution or distress become enforceable or become levied upon its interest
in the Property.

 

(p)           Taxes.

 

(i)            (A) each DCT Affiliate that is
being contributed to the Partnership has timely filed or caused to be timely
filed (taking into account any applicable extension periods) all material Tax
Returns required to be filed by it and each such Tax Return was true, complete
and correct in all material respects; and (B) all material Taxes with
respect to taxable periods covered by such Tax Returns, and all other material
Taxes otherwise due and payable from each DCT Affiliate that is being
contributed to the Partnership have been timely paid in full or will be timely
paid in full by the due date thereof other than such Taxes as are being
contested in good faith and for which adequate reserves have been provided;

 

(ii)           There are no liens for Taxes with
respect to any of the assets or properties of the DCT Affiliate that is being
contributed to the Partnership (including the Properties), other than for Taxes
not yet due and payable or being contested in good faith by appropriate
proceedings in accordance with applicable law;

 

(iii)          Each DCT Affiliate that is being
contributed to the Partnership has complied in all respects with all applicable
laws, rules and regulations relating to the payment and withholding of
Taxes required to have been withheld in connection with amounts paid or owing
to any employee, independent contractor, creditor, stockholder or other third
party (including, without limitation, withholding of Taxes pursuant to Sections
1441, 1442, 3121 and 3402 of the Code or similar provisions under any state,
local or foreign laws) and has,

 

16

 

within the time
and the manner prescribed by law, withheld from and paid over to the proper
governmental authorities all amounts required to be so withheld and paid over
under applicable laws; and

 

(iv)          Each DCT Affiliate that is being
contributed to the Partnership is, and has been since formation, an entity
disregarded as separate from its respective owner for U.S. federal income tax
purposes under Treasury Regulation Section 301.7701-3.

 

(q)           Certain
Definitions. As used in this Section 9.1, the following
terms shall have the meanings indicated:

 

(i)            “knowledge”
or any derivation thereof means and is limited by the current actual knowledge
of James Cochran and Teresa Corral, who collectively have made inquiry of, and
would in the ordinary course of their representation as officers of DCT
Industrial Trust Inc., receive notice from other officers, agents, employees or
consultants of the DCT Parties regarding the matters set forth in this Section 9.1;

 

(ii)           “Tax” or “Taxes” shall mean all forms of
taxation imposed by any federal, state, local, foreign or other Taxing
Authority, including income, franchise, property, sales, use, excise,
employment, unemployment, payroll, social security, estimated, value added, ad
valorem, transfer, recapture, withholding and other taxes of any kind,
including any interest, penalties and additions thereto;

 

(iii)          “Taxing Authority”
shall mean any federal, state, local or foreign government, any subdivision,
agency, commission or authority thereof or any quasi-governmental body
exercising tax regulatory authority; and

 

(iv)          “Tax Return” shall mean any report,
return, document, declaration or other information or filing required to be
supplied to any Taxing Authority with respect to Taxes, including any amendment
made with respect thereto.

 

SECTION 9.2. TRT Partner’s Representations and Warranties.
As a material inducement to the DCT Parties to execute this Agreement and
consummate this transaction, TRT Partner represents and warrants to the DCT
Parties that:

 

(a)           Organization
and Authority. TRT Partner has been duly organized and is validly
existing as a Delaware corporation, in good standing in the State of Delaware. TRT
Partner has the full right and authority and has obtained any and all consents
required to enter into this Agreement and to consummate or cause to be
consummated the transactions contemplated hereby. This Agreement has been, and
all of the documents to be delivered by TRT Partner at the Closing will be,
authorized and properly executed and constitutes, or will constitute, as
appropriate, the valid and binding obligation of TRT Partner, enforceable in
accordance with their terms subject to applicable laws of bankruptcy or
insolvency and general principles of equity. The execution, delivery and performance
of this Agreement by TRT Partner do not in any material respect (i) violate
any decree or judgment of any court or governmental authority which may be
applicable to TRT Partner; (ii) violate any law (or regulation promulgated
under any law); (iii) violate or conflict with, or result in a

 

17

 

breach
of, or constitute a default under (or an event with or without notice or lapse
of time or both would constitute a default) under any contract or agreement to
which TRT Partner is a party; or (iv) violate or conflict with any
provision of the organizational documents of TRT Partner.

 

(b)           Conflicts
and Pending Action. There is no agreement to which TRT Partner is a
party or to TRT Partner’s knowledge binding on TRT Partner which is in conflict
with this Agreement. There is no action or proceeding pending or, to TRT
Partner’s knowledge, threatened against TRT Partner which challenges or impairs
TRT Partner’s ability to execute or perform its obligations under this
Agreement or the Partnership Agreement.

 

SECTION 9.3. Survival of Representations and Warranties and
Limitation of Liability. The representations and
warranties set forth in Article 9 are made as of the date of this
Agreement and shall not be deemed to be merged into or waived by the
instruments of Closing, but shall survive the Closing for a period of twelve
(12) months. The DCT Parties and the Partnership shall have the right to bring
an action thereon only if the DCT Parties or the Partnership, as the case may
be, has given the other party written notice of the circumstances giving rise
to the alleged breach within such twelve (12) month period. Each party agrees
to defend and indemnify the other against any claim, liability, damage or
expense asserted against or suffered by such other party arising out of the
breach or inaccuracy of any such representation or warranty for which notice
has been so given. Notwithstanding anything in this Agreement or in the
documents delivered in connection with this Agreement, the DCT Parties’
aggregate collective liability for claims arising out of matters that expressly
survive the Closing shall be limited and shall not exceed a sum equal to ten
percent (10%) of the Purchase Value.

 

ARTICLE X

MISCELLANEOUS

 

SECTION 10.1. Parties Bound. No party may
assign this Agreement without the prior written consent of the other parties,
and any such prohibited assignment shall be void. Subject to the foregoing,
this Agreement shall be binding upon and inure to the benefit of the respective
legal representatives, successors, assigns, heirs and devisees of the parties.

 

SECTION 10.2. Default. If any party defaults
in its obligations hereunder, the other parties may pursue any remedies
available to them at law or in equity; provided,
however that Contributor shall
not be entitled to pursue the remedy of specific performance against TRT
Partner or Partnership.

 

SECTION 10.3. Confidentiality. No party may
issue a public announcement concerning the transactions contemplated by this
Agreement without the prior written consent of the other parties, such consent
not to be unreasonably withheld or delayed, except as required by law or the rules of
any securities exchange on which securities of such party or one of its
affiliates are listed.

 

SECTION 10.4. Headings. The article and
section headings of this Agreement are for convenience only and in no way
limit or enlarge the scope or meaning of the language hereof.

 

18

 

SECTION 10.5. Invalidity and Waiver. If any
portion of this Agreement is held invalid or inoperative, then so far as is
reasonable and possible the remainder of this Agreement shall be deemed valid
and operative, and effect shall be given to the intent manifested by the
portion held invalid or inoperative. The failure by a party to enforce against
any other party any term or provision of this Agreement shall not be deemed to
be a waiver of such party’s right to enforce against the other party the same
or any other such term or provision in the future.

 

SECTION 10.6. Governing Law. This Agreement
shall, in all respects, be governed, construed, applied, and enforced in
accordance with the law of the State of Delaware.

 

SECTION 10.7. No Third Party Beneficiary. This
Agreement is not intended to give or confer any benefits, rights, privileges,
claims, actions, or remedies to any person or entity as a third party
beneficiary or otherwise.

 

SECTION 10.8. Entirety and Amendments. This
Agreement embodies the entire agreement between the parties and supersedes all
prior agreements and understandings relating to the Property except for the
Partnership Agreement on the parties, which shall not be superseded by this
Agreement. This Agreement may be amended or supplemented only by an instrument
in writing executed by the party against whom enforcement is sought.

 

SECTION 10.9. Notices. Any notice or other
communication provided for or required by this Agreement shall be in writing
and shall be delivered by e-mail, by hand, by air courier service, by certified
or registered mail, return receipt requested, postage prepaid, or by facsimile
transmission, addressed to the person to whom such notice is intended to be
given at such address as such person may have previously furnished in writing
to the Partnership or to such person’s last known address. In the case of any
communication which requires a response within a specified period of time
pursuant to the terms of this Agreement, the time period in which such response
must be given shall commence upon the date of actual receipt of a hard copy
(including a facsimile copy) of any such communication. Delivery to any
officer, member, agent or employee of a party at the designated address of such
party shall constitute actual receipt for purposes hereof. Until receipt of
written notice to the contrary, the parties’ addresses for notices shall be
served on the parties at the addresses set forth in Section 1.1.

 

SECTION 10.10. Construction. The parties
acknowledge that the parties and their respective counsel have reviewed and
revised this Agreement and that the normal rule of construction — to
the effect that any ambiguities are to be resolved against the drafting party —
shall not be employed in the interpretation of this Agreement or any exhibits
or amendments hereto.

 

SECTION 10.11. Indemnity.

 

The following provisions
govern actions for indemnity under this Agreement. Promptly after receipt by an
indemnitee of notice of any claim, such indemnitee will, if a claim in respect
thereof is to be made against the indemnitor, deliver to the indemnitor written
notice thereof and the indemnitor shall have the right to participate in such
proceeding and, if the indemnitor agrees in writing that it will be responsible
for any costs, expenses, judgments, damages, and losses incurred by the
indemnitee with respect to such claim, to assume the defense thereof, with
counsel mutually

 

19

 

satisfactory to
the parties; provided, however, that an indemnitee shall have the
right to retain its own counsel, with the fees and expenses to be paid by the
indemnitor, if the indemnitee reasonably believes that representation of such
indemnitee by the counsel retained by the indemnitor would be inappropriate due
to actual or potential differing interests between such indemnitee and any
other party represented by such counsel in such proceeding. The failure of
indemnitee to deliver written notice to the indemnitor within a reasonable time
after indemnitee receives notice of any such claim shall relieve such
indemnitor of any liability to the indemnitee under this indemnity only if and
to the extent that such failure is prejudicial to its ability to defend such
action, and the omission so to deliver written notice to the indemnitor will
not relieve it of any other liability that it may have to any indemnitee. If an
indemnitee settles a claim without the prior written consent of the indemnitor,
then the indemnitor shall be released from liability with respect to such claim
unless the indemnitor has unreasonably withheld such consent.

 

SECTION 10.12. Further Assurances. Each of
the parties hereto agrees to take such actions and execute such further
documents, instruments and other agreements as may be reasonably requested by
any other party hereto as may be reasonably necessary to carry out and
implement the intent of this Agreement.

 

SECTION 10.13. Execution in Counterparts. This
Agreement may be executed in any number of counterparts, each of which shall be
deemed to be an original, and all of such counterparts shall constitute one
Agreement.

 

SECTION 10.14. WAIVER OF JURY TRIAL. TO THE
EXTENT PERMITTED BY APPLICABLE LAW, THE PARTIES HEREBY WAIVE ANY RIGHT TO TRIAL
BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR
THE TRANSACTIONS CONTEMPLATED HEREBY.

 

[Signature Page Follows]

 

20

 

IN WITNESS WHEREOF, the
parties hereto have executed this Agreement on the day and year written above.

 

	
   

  	
  CONTRIBUTOR:

  
	
   

  	
   

  
	
   

  	
  DCT INDUSTRIAL OPERATING PARTNERSHIP LP,
  a Delaware limited partnership,

  as sole member of each DCT Affiliate identified on Exhibit A

  
	
   

  	
   

  
	
   

  	
  By:

  	
  DCT Industrial Trust Inc., a Maryland corporation,
  its general partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name: Teresa L. Corral

  
	
   

  	
   

  	
  Its: Senior Vice President

  
	
   

  	
   

  
	
   

  	
  TRT PARTNER:

  
	
   

  	
   

  
	
   

  	
  TRT INDUSTRIAL FUND I LLC, a
  Delaware limited liability company, on behalf of

  itself and the Partnership

  
	
   

  	
   

  
	
   

  	
  By:

  	
  DCTRT Real Estate Holdco LLC, a Delaware limited
  liability company, its sole

  member

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Dividend Capital Total Realty Operating Partnership
  LP, a Delaware limited

  partnership, its sole member

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Dividend Capital Total Realty Trust Inc., a Maryland
  corporation, its general partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name: Michael J. Kelly

  
	
   

  	
   

  	
  Its: Managing Director/Chief Acquisitions Officer

  
	
   

  	
   

  
	
   

  	
  DCT PARTNER:

  
	
   

  	
   

  
	
   

  	
  DCT INDUSTRIAL FUND II LLC, a
  Delaware limited liability company on behalf of

  itself and the Partnership

  
	
   

  	
   

  
	
   

  	
  By:

  	
  DCT Industrial Operating Partnership LP, a Delaware
  limited partnership, f/k/a

  Dividend Capital Operating Partnership LP, its sole member

  
	
   

  	
   

  
	
   

  	
  By:

  	
  DCT Industrial Trust, Inc., a Maryland
  corporation, f/k/a Dividend Capital Trust Inc.,

  its general partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name: Teresa L. Corral

  
	
   

  	
   

  	
  Its: Senior Vice
  President

  

 

S-1

 

EXHIBIT A-1

 

DCT AFFILIATES

 

 

1.                                      DCT
Silver Springs LLC, a Delaware limited liability company

 

 

EXHIBIT A-2

 

PROPERTY

 

270 Old Silver Springs Road, Mechanicsburg, PA

 

3

 

EXHIBIT A-3

 

LEGAL DESCRIPTION OF REAL PROPERTY

 

ALL THAT CERTAIN tract or
land situate in the Township of Hampden, County of Cumberland and State of
Pennsylvania, shown on and described in accordance with the Topographical Plan
for Kinney Shoe Corporation as prepared by D.P. Raffensperger Associates dated November 14,
1979, as revised February 22, 1980.

 

BEGINNING at a point in
the centerline of Old Silver Spring Road at the dividing line between Lots 5-A
and 2; thence along the centerline of Old Silver Spring Road and beyond
crossing New Silver Road (L.R. 21051) North 30 degrees 20 minutes a distance of
411.17 feet to a point; thence along lands of W.D.C. Incorporated North 11
degrees 15 minutes East a distance of 181.03 feet to a point; thence crossing
New Silver Spring Road (L.R. 21051) and along lands of Cresline Plastic Pipe
Company, Inc., North 76 degrees 19 minutes 38 seconds East a distance of
689.08 feet to a point; thence along Lot No. 6 by a curve to the left
having a radius of 725.00 feet to an arc distance of 210.82 feet (said curve
having a chord bearing of South 22 degrees 00 minutes 11 seconds East and a
distance of 210.08 feet) to a point; thence continuing along Lot No. 6 and
5, South 30 degrees 20 minutes East a distance of 141.12 feet to a point;
thence along Lot No. 5-A South 59 degrees 40 minutes West a distance of
749.80 feet to the place of BEGINNING.

 

CONTAINING 7.936 acres
and being Lot No. 2 of the Final Subdivision Plan for Harrisburg Area Industrial
Development Corporation recorded in the Office of the Recorder of Deeds in and
for Cumberland County in Plan Book 34, page 106.

 

BEING the same premises
which First Industrial Development Services, Inc. a Maryland corporation,
erroneously identified in prior deed as First Industrial Development Services
Group, Inc., a Maryland corporation, by deed dated 4/26/2006 and recorded
5/11/2006 in Deed Book 274 page 2441 granted and conveyed unto DCT Silver
Springs LLC, a Delaware limited liability company, in fee.

 

4

 

EXHIBIT B

 

SCHEDULE OF LEASES

 

See Rent Roll (Exhibit J)

 

5

 

EXHIBIT C

 

OPERATING STATEMENTS

 

[See Attached]

 

6

 

71198 : 360 OLD SILVER SPRING RD

 

Due Diligence Property Statement

PERIOD ENDING JANUARY 2006

 

	
   

  	
   

  	
  1st QTR

  	
   

  	
  YTD

  	
   

  
	
  PROPERTY STATEMENT

  	
   

  	
  ACTUAL

  	
   

  	
  ACTUAL

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Income

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Rental

  	
   

  	
  37,958

  	
   

  	
  37,958

  	
   

  
	
  Recovery

  	
   

  	
  8,129

  	
   

  	
  8,129

  	
   

  
	
  Total
  Income

  	
   

  	
  46,087

  	
   

  	
  46,087

  	
   

  
	
  Operating Expense

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Real Estate
  Taxes

  	
   

  	
  (2,958

  	
  )

  	
  (2,958

  	
  )

  
	
  Repairs &
  Maintenance

  	
   

  	
  (4,675

  	
  )

  	
  (4,675

  	
  )

  
	
  Insurance

  	
   

  	
  (737

  	
  )

  	
  (737

  	
  )

  
	
  Utilities

  	
   

  	
  (201

  	
  )

  	
  (201

  	
  )

  
	
  Total
  Operating Expenses

  	
   

  	
  (8,570

  	
  )

  	
  (8,570

  	
  )

  
	
  Net
  Operating Income

  	
   

  	
  37,517

  	
   

  	
  37,517

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Capital Improvements

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Leasing
  Commissions

  	
   

  	
  (14,309

  	
  )

  	
  (14,309

  	
  )

  
	
  Total
  Capital Expenditures

  	
   

  	
  (14,309

  	
  )

  	
  (14,309

  	
  )

  
	
  Net
  Property Total

  	
   

  	
  23,208

  	
   

  	
  23,208

  	
   

  

 

 

71198 : 360 OLD SILVER SPRING RD

 

Due Diligence Property Statement

PERIOD ENDING DECEMBER 2005

 

	
   

  	
   

  	
  4th QTR

  	
   

  	
  YTD

  	
   

  
	
  PROPERTY STATEMENT

  	
   

  	
  ACTUAL

  	
   

  	
  ACTUAL

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Income

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Rental

  	
   

  	
  113,873

  	
   

  	
  450,475

  	
   

  
	
  Recovery

  	
   

  	
  12,709

  	
   

  	
  73,413

  	
   

  
	
  Other Income

  	
   

  	
  133

  	
   

  	
  3,044

  	
   

  
	
  Total
  Income

  	
   

  	
  126,714

  	
   

  	
  526,932

  	
   

  
	
  Operating Expense

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Real Estate
  Taxes

  	
   

  	
  (8,439

  	
  )

  	
  (33,756

  	
  )

  
	
  Repairs &
  Maintenance

  	
   

  	
  (2,327

  	
  )

  	
  (24,958

  	
  )

  
	
  Insurance

  	
   

  	
  (2,393

  	
  )

  	
  (9,579

  	
  )

  
	
  Utilities

  	
   

  	
  (709

  	
  )

  	
  (3,025

  	
  )

  
	
  Total
  Operating Expenses

  	
   

  	
  (263

  	
  )

  	
  (1,477

  	
  )

  
	
  Net
  Operating Income

  	
   

  	
  (14,131

  	
  )

  	
  (72,795

  	
  )

  
	
   

  	
   

  	
  112,583

  	
   

  	
  454,137

  	
   

  
	
  Capital Improvements

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total
  Capital Expenditures

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  Net
  Property Total

  	
   

  	
  112,583

  	
   

  	
  454,137

  	
   

  

 

 

71198 : 360 OLD SILVER SPRING RD

 

Due Diligence Property Statement

PERIOD ENDING DECEMBER 2003

 

	
   

  	
   

  	
  4th QTR

  	
   

  	
  YTD

  	
   

  
	
  PROPERTY STATEMENT

  	
   

  	
  ACTUAL

  	
   

  	
  ACTUAL

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Income

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Rental

  	
   

  	
  114,572

  	
   

  	
  364,884

  	
   

  
	
  Recovery

  	
   

  	
  15,844

  	
   

  	
  57,864

  	
   

  
	
  Total
  Income

  	
   

  	
  130,416

  	
   

  	
  422,748

  	
   

  
	
  Operating Expense

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Real Estate
  Taxes

  	
   

  	
  (7,155

  	
  )

  	
  (28,620

  	
  )

  
	
  Repairs &
  Maintenance

  	
   

  	
  (8,291

  	
  )

  	
  (38,181

  	
  )

  
	
  Utilities

  	
   

  	
  (2,854

  	
  )

  	
  (9,391

  	
  )

  
	
  Other Expenses

  	
   

  	
  0

  	
   

  	
  (1,211

  	
  )

  
	
  Total
  Operating Expenses

  	
   

  	
  (18,300

  	
  )

  	
  (77,404

  	
  )

  
	
  Net
  Operating Income

  	
   

  	
  112,116

  	
   

  	
  345,344

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Capital Improvements

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Building
  Improvements

  	
   

  	
  0

  	
   

  	
  803

  	
   

  
	
  Leasing
  Commissions

  	
   

  	
  0

  	
   

  	
  75,879

  	
   

  
	
  Total
  Capital Expenditures

  	
   

  	
  0

  	
   

  	
  76,682

  	
   

  
	
  Net
  Property Total

  	
   

  	
  112,116

  	
   

  	
  422,026

  	
   

  

 

 

71198 : 360 OLD SILVER SPRING RD

 

Due Diligence Property Statement

PERIOD ENDING DECEMBER 2004

 

	
   

  	
   

  	
  4th QTR

  	
   

  	
  YTD

  	
   

  
	
  PROPERTY STATEMENT

  	
   

  	
  ACTUAL

  	
   

  	
  ACTUAL

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Income

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Rental

  	
   

  	
  110,838

  	
   

  	
  416,448

  	
   

  
	
  Recovery

  	
   

  	
  18,536

  	
   

  	
  67,474

  	
   

  
	
  Other Income

  	
   

  	
  1,397

  	
   

  	
  1,899

  	
   

  
	
  Total
  Income

  	
   

  	
  130,771

  	
   

  	
  485,821

  	
   

  
	
  Operating Expense

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Real Estate
  Taxes

  	
   

  	
  (633

  	
  )

  	
  (21,648

  	
  )

  
	
  Repairs &
  Maintenance

  	
   

  	
  (5,398

  	
  )

  	
  (26,512

  	
  )

  
	
  Insurance

  	
   

  	
  (2,325

  	
  )

  	
  (9,300

  	
  )

  
	
  Utilities

  	
   

  	
  (1,330

  	
  )

  	
  (13,078

  	
  )

  
	
  Other Expenses

  	
   

  	
  (219

  	
  )

  	
  (3,057

  	
  )

  
	
  Total
  Operating Expenses

  	
   

  	
  (9,905

  	
  )

  	
  (73,594

  	
  )

  
	
  Net
  Operating Income

  	
   

  	
  120,866

  	
   

  	
  412,226

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Capital Improvements

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Building
  Improvements

  	
   

  	
  0

  	
   

  	
  (26

  	
  )

  
	
  Tenant
  Improvements

  	
   

  	
  0

  	
   

  	
  (58,036

  	
  )

  
	
  Leasing
  Commissions

  	
   

  	
  0

  	
   

  	
  (21,279

  	
  )

  
	
  Total
  Capital Expenditures

  	
   

  	
  0

  	
   

  	
  (79,341

  	
  )

  
	
  Net
  Property Total

  	
   

  	
  120,866

  	
   

  	
  332,885

  	
   

  

 

 

EXHIBIT D

 

SERVICE CONTRACTS

 

1.              Service
Agreement for HVAC preventative maintenance (Suite 100) at 270 Old Silver
Springs with Enginuity, LLC dated October 1, 2005.

 

2.              Service
Agreement for landscaping at 270 Old Silver Springs with The Brickman Group,
Ltd. dated April 1, 2006.

 

3.              Service
Agreement for snow removal at 270 Old Silver Springs with The Brickman Group,
Ltd. dated November1, 2005.

 

4.              Service
Agreement for HVAC preventative maintenance (St. Thomas) at 270 Old Silver Springs
with Enginuity, LLC dated October 1, 2005.

 

5.              Service
Agreement for HVAC preventative maintenance (Suite 200) at 270 Old Silver
Springs with Enginuity, LLC dated October 1, 2005.

 

6.              Service
Agreement for sprinkler inspection at 270 Old Silver Springs with Safety
Sprinkler, Inc. dated January 1, 2006.

 

7.              Service
Agreement for fire alarm monitoring at 270 Old Silver Springs with Sharce
Enterprises, Inc. dated January 1, 2004.

 

7

 

EXHIBIT E

 

1.              Phase
I Environmental Site Assessment for 270 Siler Springs by SECOR International
Incorporated dated April 6, 2006.

 

2.              Property
Condition Assessment for 270 Old Silver Springs by Pond, Robinson &
Associates, LP dated March 2006.

 

8

 

EXHIBIT F

 

CONTRIBUTOR’S ESTOPPEL

 

 

                 ,
2006

 

 

                                                                 

c/o Dividend Capital Total Realty Trust

518 17th Street

Suite 1700

Denver, Colorado 80202

Attention: Greg Moran

 

Greg:

 

The undersigned is the
sole owner of the landlord to the tenants described in the       
(    ) Tenant Estoppel Certificates attached hereto as Exhibit A.
Pursuant to Section 7.2(g) of that certain Contribution and
Investment Agreement (the “Contribution Agreement”),
dated as of                              ,
by and between, among others, the undersigned and the Partnership the
undersigned has agreed to deliver this Seller’s Estoppel for your benefit as
more particularly set forth in Section 7.2(g) of the
Agreement.

 

Accordingly, for good and
valuable consideration and in order to have you proceed with the Closing, the
undersigned hereby certifies the truth and accuracy of the factual statements
set forth in the attached Tenant Estoppel Certificates in all material
respects, provided that with respect to the matters covered in paragraph 12 we
certify only to the actual knowledge of the undersigned. Notwithstanding the
foregoing, however, this Seller’s Estoppel shall be superceded by the actual
Tenant Estoppel Certificates if and when delivered by the applicable tenants in
accordance with Section 7.2(g) of the Contribution Agreement.

 

The
undersigned is executing this certificate as an inducement for you to proceed
with the Closing.

 

[Signature Follows]

 

9

 

	
   

  	
  DCT INDUSTRIAL OPERATING

  PARTNERSHIP LP, a Delaware limited

  partnership

  
	
   

  	
   

  
	
   

  	
  By:

  	
  DCT Industrial Trust Inc., a Maryland

  
	
   

  	
   

  	
  corporation, its general partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name: Teresa L. Corral

  
	
   

  	
   

  	
  Its: Senior Vice President

  

 

10

 

EXHIBIT A TO SELLER’S ESTOPPEL

 

[attach Tenant Estoppels]

 

 

EXHIBIT G

 

TENANT ESTOPPEL CERTIFICATE

 

To:                             [                                                ]

                                                  

                                                  

Attention:                                 

 

	
  Re:

  	
  Property Address:

  	
                                               ,

  
	
   

  	
   

  	
                     ,
                         

  
	
   

  	
   

  	
  (the “Property”)

  

 

The undersigned tenant
(the “Tenant”) hereby certifies to you as follows:

 

1.             Tenant is a tenant
at the Property under a lease (the “Lease”) dated             ,
between                         
and                         ,
a true, correct, and complete copy of which, including all amendments thereto
and guaranties thereof, is attached hereto as Exhibit A. There are
no other agreements, written or oral, affecting or relating to Tenant’s lease
of the leased premises described in the Lease (the “Premises”) or any
other portion of the Property.

 

2.             Tenant took
possession of the Premises, consisting of                                              
square feet, on                 .
The Tenant currently has full possession of the Premises, has not assigned the
Lease or sublet any part of the Premises and does not hold the Premises under
an assignment or sublease [, except:                   ].

 

3.             Tenant has accepted
possession of the Premises, and all work to be performed by Landlord for Tenant
under the Lease has been performed and has been accepted by Tenant [, except            ].
All allowances to be paid to Tenant have been paid, and there is no
construction completed, ongoing, or planned for which Landlord is obligated to
reimburse Tenant.

 

4.             All base rent and
additional rent under the Lease has been paid through                           ,
20    . There is no prepaid rent [except            ].

 

5.             Base rent is
currently payable in the amount of $                 
per month.

 

6.             Tenant is currently
paying estimated payments of additional rent of $               
on account of real estate taxes, insurance, and common area maintenance
expenses. Select correct alternative: A Tenant
pays its full proportionate share of real estate taxes, insurance, and common
area maintenance expenses OR B Tenant pays Tenant’s proportionate share
of the increase in real estate taxes and insurance over the [base year/base
amount] of                      
and its full proportionate share of common area maintenance charges OR C                                                                            .

 

7.             The amount of
security deposit is $             
and to Tenant’s knowledge none of the security deposit has been applied by the
landlord to any obligation under the Lease.

 

8.             The Lease term
expires on                 ,
and Tenant has the following renewal or extension option(s):                                     .
The renewal or extension options for the following periods have been exercised:                                        .

 

9.             The Lease is in
full force and effect, free from default and, to Tenant’s knowledge, from any
event which could become a default under the Lease. Tenant has no claims
against the landlord or offsets or defenses against rent, and there are no
disputes with the landlord. Tenant is not currently entitled to any rent
abatement under the Lease.

 

 

10.          The Tenant has the
following expansion rights with respect to the Property:                                                        .

 

11.          The Tenant has no
rights or options to purchase the Property.

 

12.          To the best of the
Tenant’s knowledge, no hazardous wastes have been generated, treated, stored,
or disposed of by or on behalf of the Tenant or anyone else on the Premises.

 

The undersigned has executed
this certificate with the knowledge and agreement that the undersigned will be
bound by the statements contained herein and that they may be relied upon by
the addressee, any mortgagee of the Property, and their respective successors
and assigns.

 

Dated this         
day of                        ,
200    .

 

	
   

  	
  [TENANT’S NAME]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Title:

  	
   

  
				

 

 

EXHIBIT H

 

ASSIGNMENT OF MEMBERSHIP
INTEREST

 

FOR
VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, DCT INDUSTRIAL
OPERATING PARTNERSHIP LP, a Delaware limited partnership, Assignor, hereby
sells, assigns and transfers to, TRT-DCT INDUSTRIAL JV I GENERAL PARTNERSHIP, a
Delaware general partnership, Assignee, all of its right, title and interest in
and to its 100% limited liability company interest (the “Membership
Interest”) in DCT SILVER SPRINGS LLC, a Delaware limited
liability company (the “Company”).

 

From
and after the date hereof, Assignee hereby assumes and agrees to be bound by
all of the obligations, undertakings, duties and liabilities arising under the
terms of the Company’s Limited Liability Company Agreement (the “Operating Agreement”), with respect
to the ownership of the Membership Interest.

 

Assignor
hereby agrees to indemnify and hold Assignee harmless from and against any
claims by the Company or any partner thereof that Assignor failed to perform
its obligations under the Operating Agreement prior to the date hereof with
respect to the Membership Interest.

 

Assignee
hereby agrees to indemnify and hold Assignor harmless from and against any
claims by the Company or any partner thereof by reason of Assignee’s failure to
perform its obligations under the Operating Agreement from and after the date
hereof with respect to the Membership Interest.

 

[Signatures Follow]

 

 

Dated: December 8, 2006

 

 

	
  ASSIGNOR:

  	
  DCT INDUSTRIAL OPERATING

  PARTNERSHIP LP, a Delaware limited

  partnership

  
	
   

  	
   

  
	
   

  	
  By:

  	
  DCT Industrial Trust Inc., a Maryland

  corporation, its general partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   Name: Teresa L. Corral

  
	
   

  	
   

  	
   Its: Senior Vice President

  

 

 

	
  Dated: December 8,
  2006

  	
   

  
	
  ASSIGNEE:

  	
  TRT-DCT Industrial JV I General
  Partnership, a
  Delaware

  general partnership

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: TRT INDUSTRIAL FUND I
  LLC, a Delaware limited liability

  company, on behalf of itself and the general partnership

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: DCTRT Real Estate Holdco LLC, a Delaware
  limited

  liability company, its sole member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: Dividend Capital Total Realty Operating

  Partnership LP, a Delaware limited

  partnership, its sole member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: Dividend Capital Total Realty Trust

  Inc., a Maryland corporation, its general partner

  
	
   

  	
   

  

 

	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Michael J. Kelly

  	
   

  
	
   

  	
   

  	
  Its:

  	
  Managing Director/Chief

  	
   

  
	
   

  	
   

  	
   

  	
  Acquisitions Officer

  	
   

  
	
   

  	
   

  

 

	
   

  	
  By: DCT INDUSTRIAL FUND II
  LLC, a Delaware limited

  liability company on behalf of itself and the general

  partnership

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: DCT Industrial Operating Partnership LP, a
  Delaware

  limited partnership, f/k/a Dividend Capital Operating

  Partnership LP, its sole member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: DCT Industrial Trust, Inc., a Maryland

  corporation, f/k/a Dividend Capital Trust

  Inc., its general partner

  
	
   

  	
   

  

 

	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name: Teresa L. Corral

  
	
   

  	
  Its: Senior Vice President

  

 

 

EXHIBIT I

 

LEASING COMMISSIONS

 

1.              Store
Supply Warehouse – Per lease, Landlord is responsible for tenant broker
commission of 2% upon tenant’s extension/expansion. Tenant’s broker is Collier’s
L&A, however tenant may designate other broker.

 

2.              St.
Thomas Creations – Per lease, no ongoing/future landlord obligation.

 

3.              List
Industries – Per lease, landlord responsible for agreement between landlord and
NAI/CIR.

 

 

EXHIBIT J

 

RENT ROLL

 

[See Attached]

 

 

RENT ROLL

 

Silver Spring

270 Old Silver Spring Rd

Mechanicsburg, PA

 

As of November 30, 2006

 

	
  Rent
  Roll Summary

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Occupied Area

  	
   

  	
   

  	
   

  	
  100.00

  	
  %

  
	
  Total Vacant Area

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total Net Resale Area

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Lease Term

  	
   

  	
  Base Rent Amount

  	
   

  	
  Expense illegible

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Office

  	
   

  	
  Commencement

  	
   

  	
  Adjustment

  	
   

  	
  Annual

  	
   

  	
  Annual

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Mgmt.

  	
   

  	
   

  
	
  Customer

  	
   

  	
  Sq. Ft

  	
   

  	
  %

  	
   

  	
  Adjustment

  	
   

  	
  Expiration

  	
   

  	
  Rate Per

  	
   

  	
  Base Rent

  	
   

  	
  Taxes

  	
   

  	
  illegible

  	
   

  	
  CAM

  	
   

  	
  Fee

  	
   

  	
  Option Comments

  
	
  St Lannas

  	
   

  	
  illegible

  	
   

  	
  1.5

  	
  %

  	
  ?-Sep-01

  	
   

  	
  31-Aug-02

  	
   

  	
  $

  	
  illegible

  	
   

  	
  illegible

  	
   

  	
  Net

  	
   

  	
  Net

  	
   

  	
  Net

  	
   

  	
  Y

  	
   

  	
  Security Deposit illegible

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  ?-Sep-02

  	
   

  	
  31-Aug-03

  	
   

  	
  $

  	
  illegible

  	
   

  	
  illegible

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  ?-Sep-03

  	
   

  	
  31-Aug-04

  	
   

  	
  $

  	
  illegible

  	
   

  	
  illegible

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  ?-Sep-04

  	
   

  	
  31-Aug-05

  	
   

  	
  $

  	
  illegible

  	
   

  	
  illegible

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  ?-Sep-05

  	
   

  	
  31-Aug-06

  	
   

  	
  $

  	
  illegible

  	
   

  	
  illegible

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  ?-Sep-06

  	
   

  	
  31-Aug-07

  	
   

  	
  $

  	
  illegible

  	
   

  	
  illegible

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  ?-Sep-07

  	
   

  	
  31-Aug-08

  	
   

  	
  $

  	
  illegible

  	
   

  	
  illegible

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Net Supply Resource, LLC

  	
   

  	
  3,543

  	
   

  	
  2.0

  	
  %

  	
  ?-Feb-06

  	
   

  	
  30-Apr-06

  	
   

  	
  $

  	
  illegible

  	
   

  	
  illegible

  	
   

  	
  Net

  	
   

  	
  Net

  	
   

  	
  Net

  	
   

  	
  Y

  	
   

  	
  Security Deposit illegible

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  ?-May-06

  	
   

  	
  30-Apr-07

  	
   

  	
  $

  	
  illegible

  	
   

  	
  illegible

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  ?-May-07

  	
   

  	
  30-Apr-08

  	
   

  	
  $

  	
  illegible

  	
   

  	
  illegible

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  ?-May-08

  	
   

  	
  30-Apr-09

  	
   

  	
  $

  	
  illegible

  	
   

  	
  illegible

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  ?-May-08

  	
   

  	
  30-Apr-10

  	
   

  	
  $

  	
  illegible

  	
   

  	
  illegible

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  ?-May-09

  	
   

  	
  30-Apr-11

  	
   

  	
  $

  	
  illegible

  	
   

  	
  illegible

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  illegible

  	
   

  	
  illegible

  	
   

  	
  illegible

  	
   

  	
  ?-Mar-04

  	
   

  	
  ?-May-04

  	
   

  	
  $

  	
  illegible

  	
   

  	
  illegible

  	
   

  	
  Net

  	
   

  	
  Net

  	
   

  	
  Net

  	
   

  	
  Y

  	
   

  	
  Security Deposit illegible

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  ?-May-04

  	
   

  	
  ?-May-05

  	
   

  	
  $

  	
  illegible

  	
   

  	
  illegible

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  ?-Jun-05

  	
   

  	
  ?-May-06

  	
   

  	
  $

  	
  illegible

  	
   

  	
  illegible

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  illegible Paragraph

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  ?-Jun-06

  	
   

  	
  ?-May-07

  	
   

  	
  $

  	
  illegible

  	
   

  	
  illegible

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  ?-Jun-07

  	
   

  	
  ?-May-08

  	
   

  	
  $

  	
  illegible

  	
   

  	
  illegible

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  ?-Jun-08

  	
   

  	
  ?-May-09

  	
   

  	
  $

  	
  illegible

  	
   

  	
  illegible

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

It has one 5-yr ended return at $3.93 of

 

 

 

EXHIBIT K

 

PENDING OR THREATENED PROCEEDINGS, LIABILITIES

 

NONEExhibit 10.39

 

PROPERTY MANAGEMENT AGREEMENT

 

This Property Management Agreement (the “Agreement”)
made as of the 8th day of December, 2006, by and between DCT Silver
Springs LLC, a Delaware limited liability company,  (“Owner”), and The Flynn Company, a Pennsylvania
corporation (“Property Manager”).

 

Owner desires to retain the services of Property
Manager, as an independent contractor, in connection with the management and
operation of the real property owned by Owner identified on Exhibit A,
attached hereto (“Property”) and Property Manager desires to assume such
responsibilities, upon the terms and conditions set forth in this Agreement. If
Exhibit A includes more than one property, or if additional properties
are added to this Agreement by the written agreement of the parties from time
to time, the term Property means one property, some properties or all
properties subject to the Agreement, as the context may require.

 

In consideration of the premises and the mutual
promises and covenants herein contained, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
Owner and Property Manager agree as follows:

 

1.                                      Appointment.
Subject to the terms and provisions of this Agreement, Owner hereby grants to
Property Manager, as an independent contractor, the exclusive right to manage
and operate the Property. Owner and Property Manager have entered into this
Agreement in reliance upon the unique knowledge, experience, reputation and
expertise of the other party and in reliance upon the duties of loyalty and
confidentiality which each party hereby agrees to undertake. Except as
otherwise expressly provided in this Agreement, neither party shall be required
to accept performance under this Agreement from any person, including, without
limitation, Owner or Property Manager, as the case may be, should it become a
debtor in possession under the United States Bankruptcy Code, or any trustee of
either appointed under the United States Bankruptcy Code and any assignee of such
party or trustee, other than the other party.

 

2.                                      Term
and Termination.

 

(a)                                 Initial
Term. The initial term of this Agreement shall commence on December 8,
2006, if Owner is not the owner of the Property on such date, on the date Owner
closes on the purchase of the property, and except as otherwise expressly
provided in this Agreement, shall continue until one year following the
commencement of the term of this Agreement and from year to year thereafter
subject to termination as provided in subsection (b). This agreement shall
automatically terminate if the initial term does not commence within 30 days of
the date of this Agreement.

 

(b)                                 Termination.
Notwithstanding anything to the contrary contained in this Agreement, Property
Manager may terminate this Agreement without cause upon 60 days prior written
notice to the Owner and Owner may terminate this Agreement without cause upon
30 days prior written notice to the Property Manager. Owner may from time to
time, by written

 

	
   

  	
  Initials: PM

  	
  

  	
  Owner

  	
  

  

 

 

1

 

notice, without affecting
this Agreement with respect to any other Properties, delete individual
properties from this Agreement.

 

(c)                 Effect
of Expiration or Termination. Any expiration or termination of this Agreement
shall not affect or impair any rights or obligations which have accrued to
either party hereto prior to such expiration or termination, including, without
limitation, the rights of Property Manager to receive payments provided for
hereunder. Upon Owner’s delivery to Property Manager of notice of termination
of this Agreement under this Section 2, Owner may send a transition team to the
Property to participate in the day-to-day operations of the Property and
Property Manager shall cause its employees and other personnel engaged in the
management and operation of the Property to cooperate with Owner’s transition
team. Immediately upon the expiration of the term hereof, Property Manager
shall deliver to Owner all funds, including tenant security deposits, tenant
correspondence, property files, vendor invoices and books and records of Owner
related to the Property then in possession or control of Property Manager. Within
60 days following expiration or termination, Property Manager shall deliver to
Owner a final accounting, in writing, with respect to the operations of the
Property.

 

(d)                 Default.
Upon the occurrence of any breach of any term or provision of this Agreement by
a party (“defaulting party”), and after giving notice of such breach and an
opportunity to cure as provided below, the nondefaulting party shall be
entitled to terminate this Agreement immediately in addition to any remedy such
party may have at law or in equity. A defaulting party shall be entitled to
cure a monetary breach within 10 days after receipt of written notice of such
breach, or, in the case of a nonmonetary breach, within 30 days after such
notice provided that the defaulting party proceeds to diligently cure such
breach upon receipt of such notice.

 

(e)                 Bankruptcy,
Insolvency. If either party shall file a petition in bankruptcy or for a
reorganization or arrangement or other relief under the United States
Bankruptcy Code or any similar statute, or if any such proceeding shall be
filed against either party and is not dismissed or vacated within 60 days after
its filing, or if a court having jurisdiction shall issue an order or decree
appointing a receiver, custodian or liquidator for a substantial part of the
property of either party which decree or order remains in force undischarged
and unstayed for a period of 60 days, or if either party shall make an
assignment for the benefit of creditors or shall admit in writing its inability
to pay its debts as they become due, the other party may terminate this
Agreement upon five days written notice.

 

(f)                  Termination by Mortgagee. Notwithstanding
anything to the contrary contained in this Agreement, the holder or holders of
any indebtedness of Owner secured by a first lien mortgage or deed of trust
encumbering the Property (a “Mortgagee,” as provided for in Section 9 of this
Agreement) shall have the right to terminate this Agreement without cause upon
thirty (30) days prior written notice to Property Manager in the event such
Mortgagee forecloses its lien on the Property, or accepts a deed in lieu of
foreclosure from Owner, or otherwise becomes a mortgagee in possession of the
Property.

 

2

 

3.                                      Compensation.

 

(a)                                 Management
Fee. As consideration for the performance by Property Manager of all of its
property management duties under this Agreement, Owner agrees to pay to
Property Manager for each individual Property subject to this Agreement and
each month during the term of this Agreement that the individual Property is
subject to this Agreement, a property management fee equal to 3% of gross receipts; or in the minimum amount as detailed on the attached  Exhibit B-Schedule of Property Management
Fees (the “Management Fee”). The Management Fee shall be paid not
later than the tenth (10th) day of the month following the month for which such
fee is earned. “Gross Receipts” means all receipts of every kind and nature
derived from the operation of the Property during a specified period determined
on a cash basis, including, without limitation, rent, rent adjustments, utility
charges, parking charges, service charges, proceeds of rent interruption
insurance and tenant reimbursements for operating expenses, taxes and
insurance; excluding: (i) security deposits (to the extent not applied to
delinquent rents) and other refundable deposits; (ii) lump sum payments, which
are not amortized, for above-standard tenant improvements; (iii) interest on
bank accounts for the operation of the Property; (iv) proceeds from the sale or
refinancing of the Property, or any part thereof; (v) insurance proceeds or
dividends received from any insurance policies pertaining to physical loss or
damage to the Property or any part thereof (but not proceeds of rent
interruption insurance); (vi) condemnation awards or payments received in lieu
of condemnation of the Property or any part thereof; and (vii) any trade
discounts and rebates received in connection with the purchase of personal
property.

 

(b)                                 Payment
of Management Fee. Provided that Property Manager is not in default under
this Agreement, Property Manager shall be entitled to pay itself the monthly
Management Fee from the Property bank account referred to in Section 6(a)
hereof.

 

(c)                                  Reimbursable
and Nonreimbursable Costs. All costs incurred by Property Manager in the performance
of its duties under this Agreement that are in accordance with the approved
Budget or within $500 or 10% of the applicable line items in the approved
Budget shall be reimbursed by Owner. Notwithstanding any other provision herein
or in any Budget, the following costs shall not be reimbursable by Owner to
Property Manager:

 

(i)                                     costs
relating to bookkeeping services required to be performed by Property Manager
hereunder unless such costs are approved by Owner in writing to Property
Manager;

 

(ii)                                  salaries
and payroll expenses of Property Manager’s executives, personnel, and employees
of Property Manager, except maintenance personnel billed on an hourly or other
periodic basis and subject to the limitations in the Budget;

 

(iii)                               Property
Manager’s off-site overhead and general administrative expenses, except long
distance telephone, fax, overnight delivery, courier, registered mail, copying,
entertainment (subject to Owner’s prior approval in each instance), uniforms,
and two-way radios, where such charges are directly related to the operation of
the Property;

 

(iv)                              premiums
for insurance required to be maintained by Property Manager or any
subcontractors hereunder; and

 

3

 

(v)                                 costs
of Property Manager’s principal and branch offices.

 

4.                                      Duties.

 

(a)                                 General
Management Duties. Subject to the availability of funds provided under the
Budget, Property Manager shall manage and operate the Property in a manner
consistent with the management and operation of comparable properties, shall
provide such services as are customarily provided by a manager of properties of
comparable class and standing, and shall consult with Owner and keep Owner
advised as to all material or extraordinary matters and decisions affecting the
Property. Specifically, Property Manager shall, at Owner’s expense, perform the
following services and duties for Owner in a faithful, diligent and efficient
manner:

 

(i)                                     Property
Manager shall timely prepare and deliver to Owner such accounting and
operations reports as and in the manner required pursuant to Owner’s standard
reporting requirements, as may be amended from time to time;

 

(ii)                                  Maintain
businesslike relations with tenants of the Property whose service requests
shall be received, considered and recorded in systematic fashion in order to
show the action taken with respect to each request. Complaints of a serious
nature shall, after thorough investigation, be reported to Owner with
appropriate recommendations for addressing such complaints;

 

(iii)                               Exercise
its best efforts to collect all rents and other sums and charges due from
tenants, subtenants, licensees and concessionaires of the Property;

 

(iv)                              Prepare
or cause to be prepared for execution and filing by Owner all forms, reports
and returns, if any, required by all federal, state, or local laws in
connection with unemployment insurance, workmen’s compensation insurance,
disability benefits, Social Security and other similar taxes now in effect or
hereafter imposed, and also any other requirements relating to the contracting
of third party vendors for the Property; 
however, Property Manager shall not be obligated to prepare any of Owner’s
local, state, or federal income tax returns;

 

(v)                                 Pay
prior to delinquency all real estate taxes, sales tax, personal property taxes
and assessments levied against the Property, or any part thereof; and

 

(vi)                              Subject
to the limitations of the applicable approved Budget adopted pursuant to
subsection (b) hereof, perform such other acts as are reasonable, necessary and
proper in the discharge of its duties under this Agreement.

 

(b)                                 Budgets.

 

(i)                                     Budget
Approval Process. Property Manager shall submit by September 1st of
each year during the term hereof (or such other date as Owner may request) a
proposed detailed, written estimate or projection of all receipts and
expenditures for the operation of the Property during the next Fiscal Year,
including, without limitation, all estimated

 

4

 

rentals (including fixed,
percentage and escalation rents) and all estimated repairs, maintenance and
capital projects (“Budget”) for the ensuing Fiscal Year. Property
Manager shall submit the preliminary budget to Owner within 15 days after the
date hereof for the remainder of the Fiscal Year beginning on the date of this
Agreement. A “Fiscal Year” is a calendar year all or part of which falls
within the term of this Agreement. In the event Owner, in Owner’s sole
judgment, disapproves of any proposed Budget submitted by Property Manager,
Owner shall give Property Manager written notice thereof in which event
Property Manager shall make all revisions thereto which Owner shall direct. Property
Manager shall resubmit the revised proposed Budget to Owner for approval. Until
Owner has approved the revised approved Budget, Property Manager may continue
to operate pursuant to the last approved Budget except for increased expenses
relating to taxes, insurance and utilities which should be paid on a current
basis. In the absence of any written notice of approval within 60 days after
delivery of a proposed Budget to Owner, the proposed Budget shall be deemed to
have been approved by Owner.

 

(ii)                                  Payment
of Budgeted Expenses. Property Manager shall have the right to pay all
expenses according to the approved Budget, including the Management Fee
(hereinafter defined). Notwithstanding any other provision in this Agreement,
without the prior written consent of Owner, Property Manager shall not incur or
permit to be incurred expenses under this Agreement (excluding only utility
expenses, general real estate taxes, insurance premiums, financing costs and
emergency expenses) that exceed 10% of the applicable line items in the Budget
(e.g., cleaning expenses, HVAC expenses, maintenance expenses, etc.) but in no
event that exceed $500.00. Property Manager shall promptly notify Owner
whenever Property Manager determines that the Budget or any expense item in the
Budget is insufficient to cover the expenses of operating the Property or the
applicable expense item.

 

(c)                                  Property
Personnel. Property Manager shall 
employ, supervise, and discharge all employees required in connection
with the operation and management of the Property. All such personnel shall, in
every instance, be employees of Property Manager or independent contractors. Property
Manager shall provide and maintain, so long as this Agreement is in force,
worker’s compensation insurance in full compliance with all applicable state
and federal laws and regulations covering all employees of Property Manager
performing work in respect of the Property operations. The granting of
unbudgeted employee fringe benefits and plans not required by law or union
contract shall be subject to the reasonable prior written approval of Owner. Property
Manager agrees to comply with all governmental anti-discrimination laws and
shall not, unless acting at the direction of Owner, do any act, nor permit any
act to be done that would constitute a violation of any or all of such laws. Property
Manager shall indemnify and hold Owner harmless from and against any and all
claims, penalties, liabilities and expenses of whatsoever kind and nature which
may be asserted by any governmental body having authority or by any person
claiming to be aggrieved by reason of any acts or failure to act by Property
Manager in accordance with or in violation of any said anti-discrimination
laws, as long as such act or failure to act is not caused or directed by Owner.

 

Employees of the Property Manager or independent contractors shall
include the following:

 

(i)                                     Property
Manager. A person who is primarily responsible for overseeing the
management of the Property hereunder and who is experienced in the
administration and

 

5

 

operation of warehouse, and/or
light industrial, and/or service center facilities of the size, type, use, and
quality of the Property;

 

(ii)                                  Others.
Such other personnel required to operate and maintain the Property, including,
but not limited to, an assistant property manager, maintenance manager,  administrative and accounting personnel,
grounds keepers, and janitorial and custodial persons, as Property Manager
reasonably deems necessary or consistent with the level of service provided by other
similarly situated property.

 

(d)                                 Contracts
and Supplies. Property Manager shall, at Owner’s expense, at the lowest
cost as in its judgment is consistent with good quality, workmanship and
service standards, enter into contracts on behalf of Owner for the furnishing
to the Property of required utility services, heating and air-conditioning
services and other maintenance, pest control, and any other services and
concessions which are reasonably required in connection with the maintenance
and operation of the Property. Property Manager shall also place purchase
orders for services and Personal Property as are reasonably necessary to
properly maintain the Property. All such contracts and orders shall be subject
to the limitations set forth in the approved Budget. When taking bids or
issuing purchase orders, Property Manager shall use all reasonable efforts to
secure for and credit to Owner, any discounts, commissions or rebates
obtainable as a result of such purchases or services. Property Manager shall
use all reasonable efforts to make purchases and (where necessary or desirable)
let bids for necessary labor and materials at the lowest possible cost as in
its judgment is consistent with good quality, workmanship and service standards.
Property Manager shall not incur obligations to any person or entity in which
Property Manager or any of Property Manager’s employees has a financial or
other interest or with which Property Manager or any such employee(s) is
affiliated unless i) the price or fee therefore is not higher than that which
would have been charged as a result of a bona fide arms-length negotiation for
goods or services of comparable quality; 
and ii) Property Manager delivers to Owner prior written notice and
Owner gives its prior written approval of any such proposed transaction.

 

(e)                                  Alterations,
Repairs and Maintenance.

 

(i)                                     Budgeted
Repairs/Emergency Repairs. Property Manager shall, at Owner’s expense,
perform or cause to be performed all necessary or desirable repairs,
maintenance, cleaning, painting and decorating, alterations, replacements and
improvements in and to the Property as are customarily made by property
managers in the operation of properties of the kind, size, and quality of the
Property; provided, however, that no unbudgeted alterations, additions or
improvements involving a fundamental change in the character of the Property or
constituting a major new construction program shall be made without the prior
written approval of Owner unless specifically referenced in and performed
pursuant to any lease previously approved by Owner. In addition, no unbudgeted
expenditure in excess of $250 per item or a total of $1,000 per Fiscal Year
shall be made for such purposes in connection with any single Property without
the prior written approval of Owner. Emergency repairs involving manifest
danger to life or property, or immediately necessary for the preservation or
the safety of the Property, or for the safety of the tenants of the Property,
or required to avoid the suspension of any necessary service to the Property
may be made, however, by the Property Manager without prior approval and
regardless of the cost limitations imposed by this subsection (e). Property

 

6

 

Manager shall as soon as
practicable give written notice to Owner of any such emergency repairs for
which prior approval is not required.

 

(ii)                                  Capital
Improvements. In accordance with the terms of approved Budgets and upon
written request and/or approval of Owner, Property Manager shall, from time to
time during the term hereof, at Owner’s expense, make or cause to be made all
required capital improvements, replacements, or repairs to the Property. All
major repairs and capital replacements shall be managed by a person who
specializes in construction projects for the Property Manager (the “Construction
Manager”). The Property Manager shall be paid a construction management fee of:
5% of the total budgeted construction cost (excluding the construction
management fee) up to $50,000; 4% of the total budgeted construction cost exceeding
$50,001 and up to $200,000; and 3% of the total budgeted construction costs
exceeding $200,001 and up to $350,000; 2.5% of the total budgeted construction
costs exceeding $350,001 and up. For example and not by way of limitation, the
construction management fee for a $50,000 construction job would be $2,500. The
construction management fee shall be paid upon the completion of the
construction and written acceptance of the work by the Owner. The construction
management fee shall be based on the actual cost of the project, including any
change orders approved by Owner. Notwithstanding anything in this Section
4(e)(ii) to the contrary, it is understood and agreed that, instead of Property
Manager making or causing to be made all required capital improvements,
replacements or repairs to the Property (“Construction Work”) as provided
above, Owner may elect to engage a third party consultant to perform
construction management with respect to all or any portion of such Construction
Work, and, with respect to such Construction Work managed by such a third party
consultant, (i) Property Manager shall not be required to make or cause to be
made such Construction Work, (ii) the Property Manager shall continue to be
responsible for handling activities associated with the Construction Work
(other than the actual design and construction activities), including, without
limitation, processing of invoices and coordination with tenants, and (iii) the
construction management fee payable to Property Manager on construction
projects which are the responsibility of a third party consultant shall be
equal to 2% of the actual cost of the project (and the fee schedule provided
above shall not be applicable to such construction projects).

 

(iii)                               In
connection with all improvements, replacements, or repairs to the Property (the
“Work”), the Construction Manager shall do the following:

 

(A)                               prepare
a detailed list of the Work to be performed and review the preparation of all
plans for the construction of all improvements and repairs to the Property. Except
for any Work which is less than $2,500, the plans for the Work to be performed
shall be submitted to the Owner for its approval;

 

(B)                               except
for any Work which is less than $2,500, prepare all bid documents which shall
be distributed to at least three (3) contractors on the approved contractor
list;

 

(C)                               except
for any Work which is less than $2,500, receive all submitted bids and evaluate
such bids. In evaluating the submitted bids, Construction Manager shall
evaluate the price listed in the bid, the timeliness of the work to be
performed as stated in the bid, the reputation of the contractor

 

7

 

submitting the bid, and any other relevant factors
that Construction Manager determines should be taken into account when
evaluating the submitted bids. Once Construction Manager evaluates all the
submitted bids, Construction Manager shall recommend to Owner the bid, if any,
it believes is the best and shall explain to Owner why the recommended bid is
the best. Once Owner determines which bid to accept, Construction Manager shall
contact the contractor with the approved bid to award the contract;

 

(D)                               review,
inspect, and oversee the construction of all improvements, replacements, or
repairs to the Property to ensure that all said improvements, replacements, and
repairs comply with the construction contract requirements and all applicable
laws, including but not limited to local building codes and ordinances;

 

(E)                                ensure
that all improvements, replacements, or repairs to the Property are completed;

 

(F)                                 except
for any Work which is less than $2,500 or for Work for which a single payment
will satisfy the obligation, prepare a draw package for the disbursement of
funds to the Contractor. The draw package or single payment invoices shall be
submitted to Owner for its approval;

 

(G)                               ensure
that all guaranties and warranties for the materials, labor, and for work in
connection with or relating to the Work shall be in the name of the Owner or
shall be assigned to Owner upon the completion of the Work; and

 

(H)                              after
receiving adequate and complete written lien waivers from all workers and
suppliers and other applicable parties in connection with the Work, after
taking any and all steps necessary to release and to otherwise prevent
perfection or enforcement of any liens filed or recorded against the Property
in connection with the construction of any and all improvements or repairs to
the Property, and after receiving written approval from Owner, disburse all
funds to the proper and correct parties.

 

The Construction Manager shall provide
written reports to Owner, no less frequently than once a month, summarizing the
repairs, improvements, and replacements being constructed on the Property, as
well as such other reports as Owner may reasonably request. These reports
shall, among other things, summarize any material problems or issues that may
arise in connection with said construction.

 

(iv)                              Defects
and Warranties. Property Manager shall give Owner written notice of any
material or latent defect in the Property and all parts thereof known to
Property Manager promptly after any of the foregoing comes to Property Manager’s
attention including, without limitation, material defects in the roof,
foundation and walls of the Property and in the sewer, water, electrical,
structural, plumbing, heating, ventilation and air conditioning systems. Property
Manager shall make periodic visual inspections of the Property consistent with
its employees’ and agents’ expertise as referenced in Section 4(c)(i)
hereinabove. Property

 

8

 

Manager shall have no
obligation to discover any such condition or make any other inspections, but
Property Manager shall be required to ascertain the existence of any
contractor/subcontractor warranty or guaranty and to submit a request to the
appropriate contractor/subcontractor to repair the defect as necessary.

 

(f)                                   Licenses
and Permits. Property Manager shall, at Owner’s expense, attempt to obtain
and maintain in the name of Owner all licenses and permits required of Owner or
Property Manager in connection with the management and operation of the
Property. Owner agrees to execute and deliver any and all applications and
other documents and to otherwise cooperate with Property Manager in applying
for, obtaining and maintaining such licenses and permits.

 

(g)                                  Compliance
with laws. To the extent permitted by the approved Budget, Property Manager
shall use best efforts to comply with all applicable laws, regulations and
requirements of any federal, state or municipal government having jurisdiction
with respect to the use or manner of use of the Property or the maintenance or
operation thereof.

 

(h)                                 Legal
Proceedings. Property Manager cannot and may not terminate any lease, lock
out a tenant, institute suit for rent or for use and occupancy, or proceedings
for recovery of possession, without the prior written approval of Owner. In
connection with such suits or proceedings only legal counsel designated by Owner
shall be retained, and all such suits or proceedings shall be brought in the
name of Owner and shall be handled in such manner as Owner directs.

 

(i)                                     Inventory.
Property Manager shall maintain a current inventory of all equipment supplies,
furnishings, furniture and all other items of personal property now or
hereafter owned by Owner and located upon or used, or useful for, or necessary
or adapted for the operation of the Property.

 

(j)                                    Signs.
Property Manager may place one or more signs on or about the Property stating,
among other things, that Property Manager is the management and leasing agent
for the Property. All such signs and locations thereof shall be subject to
Owner’s prior written approval.

 

(k)                                 Third
Party Vendors. All third party vendors with whom Property Manager contracts
on behalf of Owner shall be required to submit certificates of insurance
evidencing that such vendor carries at least $1,000,000 in comprehensive
general liability insurance and such workers compensation insurance as may be
required by statute in the state in which the Property is located. If required
by other provisions of this Agreement, Owner shall be added as an additional
named insured on such policies of insurance.

 

(l)                                     Leases.
In accordance with the terms and provisions of this Agreement, Property Manager
shall ensure that all tenants comply with the terms and provisions of their
leases and shall take customary actions to enforce such leases.

 

(m)                             Additional
Services. If Property Manager shall perform such additional services as
Owner may reasonably request in writing, which are not specifically provided
for in

 

9

 

this Section 4 above,
Property Manager will be compensated for such services on an hourly basis or on
a negotiated fee basis.

 

5.                                      Procedure
For Handling Receipts And Operating Capital.

 

(a)                                 Receipts.
All monies received by Property Manager for or on behalf of Owner in connection
with the operation and management of the Property shall be promptly deposited
by Property Manager in an operating account or accounts established in Owner’s
name at such bank as directed by Owner (“Operating Accounts”). Periodically
throughout the month, Owner, in its sole discretion, may remove any excess
funds from such Operating Accounts.

 

(b)                                 Disbursements.
Owner shall deposit and maintain sufficient funds in the Operating Accounts,
and Property Manager shall withdraw and pay from such account or accounts, such
amounts at such times as the same are required in connection with the management
and operation of the Property in accordance with the provisions of this
Agreement.

 

(c)                                  Authorized
Signatories. Certain officers and employees of Property Manager, approved
by Owner and listed on Exhibit C hereto, shall be authorized signatories
on the Operating Accounts and shall have authority to make withdrawals from
such Operating Accounts. In addition, Owner shall have at least one officer or
employee of Owner as an authorized signatory on each Operating Account, which
officer(s) or employee(s) of Owner shall also be designated on Exhibit C
hereto. Property Manager shall cause all officers and employees of Property
Manager who are so designated to be bonded, at Property Manager’s expense, in
an amount required by Owner but not less than $50,000. Property Manager shall
also cause all other officers, employees, affiliates or agents of Property
Manager who in any way handle funds for the Property to be bonded, at no
expense to Owner, in an amount not less than $50,000.

 

(d)                                 Security
Deposits. All security deposits of tenants of the Property shall be
maintained under the joint control of Owner and Property Manager in such manner
as Owner shall approve and as required by the applicable state law.

 

6.                                      Accounting.

 

(a)                                 Books
and Records. In accordance with the guidelines and operating procedures
established by Owner, Property Manager shall maintain, at the central office of
Property Manager, a comprehensive system of office records, books, computer
files and data and accounts pertaining to the Property (using such property
management accounting software that Owner may choose), which system currently
is MRI. Owner also has a website, xdrive.com, which Property Manager shall also
be required to maintain and/or access for additional required forms and reports.
Such systems (MRI & xdrive.com), records, books, computer files and data
and accounts shall be available for examination, copying and audit by Owner and
its agents, accountants and attorneys during regular business hours. Property
Manager, during the term, shall preserve all records, books, computer files and
data and accounts for a period of three years and at the end of such period
shall deliver or make available to Owner such records, books, computer files
and data and accounts. All such records, books and computer files and data
shall, at all times, be the property of Owner.

 

10

 

(b)                                 Periodic
Statements; Audits.

 

(i)                                     Periodic
Statements. Property Manager shall timely prepare and deliver to Owner such
accounting and operations reports as and in the manner required pursuant to
Owner’s standard reporting requirements, as may be amended from time to time.

 

(ii)                                  Data
Processes. Property Manager shall timely meet all designated deadlines for
inputting and maintaining data on Owner’s MRI system (or other system hereafter
designated by Owner) so that Owner may download such data from Property Manager’s
computers to Owner’s computers on such designated deadlines.

 

(iii)                               Audit.
In the event that Owner requires an audit, the audit shall be at Owner’s
expense and the Property Manager shall cooperate with the auditors.

 

(iv)                              Other
Statements. Owner may request and Property Manager shall provide when
available such monthly, quarterly and/or annual leasing and management reports
that relate to the operations of the Property as Property Manager customarily
provides the owners of other properties it manages.

 

(c)                                  Return
of Computer Hardware and Software. Immediately following the termination of
this Agreement by either Owner or Property Manager, Property Manager shall
return and/or deliver to Owner, in good condition and working order, all
hardware, software, documentation, backup tapes, signature cartridges and all
other computer hardware and software purchased or otherwise provided by Owner
to Property Manager for Property Manager’s use during the term of this
Agreement.

 

7.                                      Insurance.

 

(a)                                 Insurance
by Owner. Owner, at its expense, will obtain and keep in force adequate
insurance against physical damage (e.g., fire and extended coverage
endorsement, boiler, and machinery, etc.) and not less than $5,000,000
Occurrence and Aggregate general liability insurance against liability for
loss, damage, or injury to property or persons which might arise out of the
occupancy, management, operating, or maintenance of the Property covered by
this Agreement. Property Manager will be covered as an insured in its capacity
as a Real Estate Manager on all commercial general liability insurance obtained
by Owner. Owner shall save Property Manager harmless from any liability on
account of loss, damage, or injury,  to
the extent actually insured against by Owner provided:

 

(i)                                     Property
Manager notifies Owner within twenty-four hours after Property Manager receives
notice of any such loss, damage or injury;

 

(ii)                                  Property
Manager takes no action (such as admission of liability) which bars Owner from
obtaining any protection afforded by any policy Owner may hold; and

 

(iii)                               Property
Manager agrees that Owner shall have the exclusive right, at its option, to
conduct the defense to any claim, demand or suit within limits prescribed by
the policy or policies of insurance.

 

11

 

The Property Manager shall furnish whatever information is requested by
Owner for the purpose of establishing the placement of insurance coverages and
shall aid and cooperate in every reasonable way with respect to such insurance
and any loss thereunder. Owner shall include in its hazard policy covering the
Property, the personal property, fixtures and equipment located thereon (owned
by either Property Manager or Owner), appropriate clauses pursuant to which the
insurance carriers shall waive the rights of subrogation with respect to losses
payable under such policies. Any deductible or self-insurance retention amounts
under Owner’s insurance shall be solely for the account of Owner, as coverage
of Property Manager as an insured under Owner’s property and liability
insurance shall be treated as first dollar insurance.

 

(b)                                 Indemnity.
Owner agrees to indemnify, defend and hold Property Manager harmless from and
against any and all loss, cost, damage, liability or expense (including,
without limitation, attorneys’ fees, accountants’ fees, consultants’ fees,
court costs and interest) resulting from bodily injury or tangible property
damage and arising in connection with the Property to the extent the same were
caused by the gross negligence or willful misconduct of Owner, or its officers
or employees.

 

(c)                                  Property
Manager’s Insurance. Property Manager shall maintain, at its  expense, insurance coverages in the following
amounts:

 

(i)                                     Worker’s Compensation – Coverage A: statutory
amount

 

Coverage
B: Employer’s Liability insurance:

 

$500,000
Each Accident

 

$500,000
Disease, Policy Limit

 

$500,000
Disease, Each Employee

 

Worker’s
Compensation policy shall include an Alternate Employers Endorsement WC 00 03
01 naming Property Owner as Alternate Employer for injuries occurring at “Property”

 

(ii)                                  Commercial General Liability, on an
occurrence basis, including Bodily Injury and Property Damage Liability,
Personal and Advertising Injury Liability for the following limits:

 

	
  General Aggregate

  	
   

  	
  $

  	
  2,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Products -
  Completed Operations Aggregate

  	
   

  	
  $

  	
  2,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Each
  Occurrence

  	
   

  	
  $

  	
  1,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Personal and
  Advertising Injury Liability

  	
   

  	
  $

  	
  1,000,000

  	
   

  

 

Property manager’s
Commercial General Liability policy shall include Real Estate Property Managed
Endorsement: CG 22 70 11 85 and an endorsement

 

12

 

deleting the contractual
liability exclusion contained in the Personal and Advertising Injury Liability
coverage

 

(iii)                               Owned, Hired and Non-Owned Business
Automobile liability insurance in an amount no less than $1,000,000 per
accident Combined Single Limit for bodily injury and property damage

 

(iv)                              Property Manager’s Errors & Omissions
Insurance in an amount not less than $1,000,000 per loss, aggregate.

 

(v)                                 Employee Theft Insurance in an amount not
less than $1,000,000. Employee Theft Insurance policy shall be endorsed to name
Owner as Additional Insured and to provide coverage for theft of Owner’s money,
securities and other property by employees of Property Manager.

 

(vi)                              Property Insurance coverage for personal
property of Property Manager.

 

All coverage shall be provided by insurance companies with a current
Best’s Rating of A VIII or higher. At the commencement of the Agreement,
Property Manager shall furnish Owner with Certificates of Insurance. All
insurance policies shall provide for 30 days’ written notice to Owner prior to
the cancellation or any material change to any provisions therein. Certificates
of Insurance shall be modified so the words “endeavor to”, “but failure to mail
such notice shall impose no obligation or liability of any kind upon the
company, its agents or representatives”, and all provisions of similar effect,
shall be deleted from the certificate form’s cancellation provision. At least
ten (10) days prior to the expiration of any such policy, Property Manager will
provide to Owner evidence of the renewal or replacement of the aforesaid
policies.

 

(d)                                 Indemnification of Owner. Property Manager agrees to defend and hold
and save Owner free and harmless from and against all expenses, claims,
liabilities, losses, judgments or damages, including reasonable attorneys’ fees
actually incurred (except to the extent covered by insurance carried by Owner),
which Owner may suffer or incur as a result of any gross negligence or willful
misconduct of Property Manager or its agents, employees, independent
contractors or others under the direction or control of Property Manager, any
claim by or relating to any employee of Property Manager against Owner that is
predicated on the claim that such employee is the employee of Owner and not of
Property Manager or any act outside the scope of Property Manager’s authority
hereunder, and agrees to retain legal counsel reasonably acceptable to Owner
and at Property Manager’s sole expense to defend promptly and diligently any
claim, action or proceeding brought against Owner or Property Manager, jointly
or severally, arising out of or in connection with any of the foregoing. Owner
shall have the right to be represented by advisory counsel of its own selection
and at its own expense.

 

It is expressly understood and agreed that the provisions of Section
7(b) hereinabove and the provisions of this Section 7(d) shall survive the
termination of this Agreement to the extent of any cause of action arising from
events occurring prior to such termination.

 

(e)                                  Subcontractor’s Insurance. Property Manager shall require that all
subcontractors brought onto the Property have insurance coverage, at the
subcontractor’s

 

13

 

expense,
in the following minimum amounts (which amounts may be increased at Owner’s
written request, depending on the work to be performed):

 

(i)                                     Workman’s Compensation – statutory amount;

 

(ii)                                  Employer’s Liability -
$500,000/$500,000/$500,000 minimum;

 

(iii)                               Broad Form Commercial General Liability
(naming Owner and Property Manager as additional insureds) - $1,000,000 per
occurrence Combined Single Limit; $2,000,000 aggregate (i.e., such insurance
shall include contractual liability, personal injury protection and completed
operations coverage and hold harmless provision in favor or Owner and Property
Manager);

 

(iv)                              Auto Liability - $1,000,000 minimum; and

 

(v)                                 Property Insurance coverage for tools
and equipment brought onto and/or used on the Property by the subcontractor –
an amount equal to the replacement costs of all such tools and equipment.

 

All such policies of insurance shall name Owner, Property Manager and
all other parties and/or entities required by Owner as additional insureds
thereunder, as their respective interests may appear.

 

Property Manager must obtain Owner’s prior permission to waive any of
the above requirements. Property Manager shall obtain and keep on file a
certificate of insurance that shows the contractor is so insured.

 

8.                                      Subordination
to Mortgages.

 

(a)                                 Subordination.
This Agreement and Property Manager’s interest and rights hereunder, are
subject and subordinate to the lien of any first mortgage, whether now existing
or hereafter created on or against the Property, and all amendments,
restatements, renewals, modifications, consolidations, refinancings,
assignments and extensions thereof (“Mortgage”),
without the necessity of any further instrument or act on the part of the
Property Manager. Property Manager agrees, at request of the holder of any such
Mortgage (the “Mortgagee”), to attorn to the Mortgagee
and/or to execute such documentation as the Mortgagee may reasonably require to
evidence that Property Manager’s interest and rights hereunder are and shall be
subject and subordinate at all times to the lien of the Mortgage. The term “Mortgage”
as used herein shall be deemed to include deeds of trust, security agreements,
assignments and any other encumbrances, and any reference to the “Mortgagee” of
a Mortgage shall be deemed to include the beneficiary under a deed of trust. Notwithstanding
the foregoing, nothing herein shall obligate the Property Manager to continue
its performance under this Agreement unless it continues to be paid in
accordance with the terms of this Agreement.

 

(b)                                 Rights
after Events of Default. In the event of any default under any Mortgage,
the Property Manager shall continue to perform its obligation under this
Agreement

 

14

 

until the termination of
this Agreement by the Mortgagee, which may occur in the Mortgagee’s sole
discretion, as provided for in Section 2(f) of this Agreement.

 

9.                                      Miscellaneous
Provisions.

 

(a)                                 Notices.
All notices, waivers, demands, requests, or other communications, except for
those approvals required under this Agreement which shall be sent by facsimile
or regular mail to the asset manager for that individual Property, required or
permitted hereunder shall, unless otherwise expressly provided, be in writing
and be deemed to have been properly given, served and received (i) if delivered
by messenger, when delivered, (ii) if mailed, upon deposit in the United States
mail, certified or registered, postage prepaid, return receipt requested, (iii)
if telexed, telegraphed, or telecopied, if such dispatch is followed by
delivery pursuant to (iv) below the next business day, or (v) if delivered by
reputable overnight express courier, freight prepaid, the next business day
after delivery to such courier; in every case addressed to the party to be
notified as follows:

 

	
  To Property Manager:

  	
  The Flynn Company

  
	
   

  	
  1621 Wood Street

  
	
   

  	
  Philadelphia, PA 19103

  
	
   

  	
  Attn: Robert Yoshimura

  
	
   

  	
  Telephone:

  	
  215-561-6565

  
	
   

  	
  Telefax:

  	
  215-561-5025

  
	
   

  	
   

  
	
  To Owner:

  	
  DCT Silver Springs LLC

  
	
   

  	
  518 17th St, Ste 1700

  
	
   

  	
  Denver, CO 80202

  
	
   

  	
  Attn: Bonnie Micus

  
	
   

  	
  Telephone:

  	
  303-228-2200

  
	
   

  	
  Telefax:

  	
  303-228-2201

  

 

or to such other address(es) or addressee(s) as any
party entitled to receive notice hereunder shall designate to the others in the
manner provided herein for the service of notices. Rejection or refusal to
accept or inability to deliver because of changed address or because no notice
of changed address was given, shall be deemed receipt.

 

(b)                                 Severability.
If any term, covenant or condition of this Agreement or the application thereof
to any person or circumstance shall, to any extent, be held to be invalid or
unenforceable, the remainder of this Agreement, or the application of such
term, covenant or condition to persons or circumstances other than those as to
which it is held invalid or unenforceable, shall not be affected thereby, and
each term, covenant or condition of this Agreement shall be valid and shall be
enforced to the fullest extent permitted by law.

 

(c)                                  No
Joint Venture or Partnership. Owner and Property Manager hereby renounce
the existence of any joint venture or partnership between them and agree that
nothing contained herein or in any document executed in connection herewith
shall be construed as making Property Manager and Owner joint venturers or
partners.

 

15

 

(d)                                 Modification,
Termination. This Agreement may be amended or modified only by a written
instrument executed by Property Manager and Owner.

 

(e)                                  Total
Agreement. This Agreement constitutes the entire agreement between the
parties hereto with respect to the subject matter hereof.

 

(f)                                   Article
and Section Headings. Article and Section headings contained in this
Agreement are for reference only and shall not be deemed to have any
substantive effect or to limit or define the provisions contained herein.

 

(g)                                  Successors
and Assigns. This Agreement shall be binding on the parties hereto, and
their successors and permitted assigns. Property Manager may not assign or
otherwise transfer its interest hereunder without the prior written consent of
Owner, which consent may be withheld arbitrarily in Owner’s sole discretion. This
Agreement is freely assignable by Owner.

 

(h)                                 Governing
Law. This Agreement shall be construed in accordance with the internal laws
of the state in which the Property is located.

 

(i)                                     Sarbanes
Oxley Act. Property Manager, at it sole expense, shall comply with all
requirements set forth in the Sarbanes Oxley Act of 2002 with respect to the
Project. Specifically, Property Manager will be required to produce
documentation of all accounting policies and procedures which identify all key
controls and describes in detail the processes which ultimately affect the
Project financial statements. In addition, Property Manager may be required to
perform periodic testing of such identified controls and remediate any control
weaknesses identified through such test work. All policies and procedures,
documentation and test work will be performed to the specification of the Owner
including but not limited to, implementation of appropriate controls, scope of
test work including such as sample size, measures to be taken from remediation,
etc.

 

(j)                                    Counterparts.
This Agreement may be executed in several counterparts, each of which shall be
deemed to be an original, but all of which shall constitute one and the same
instrument.

 

SIGNATURES BEGIN ON NEXT PAGE

 

16

 

SIGNATURE PAGE TO PROPERTY MANAGEMENT
AGREEMENT

DATED DECEMBER 8, 2006 

BY AND BETWEEN DCT SILVER SPRINGS LLC AND THE FLYNN COMPANY

 

 

IN WITNESS WHEREOF, this Agreement has been executed as of the date
first above written.

 

	
   

  	
  OWNER:

  
	
   

  	
   

  
	
   

  	
  DCT
  Silver Springs LLC, a Delaware limited liability company

  
	
   

  	
   

  
	
   

  	
  By:
  TRT-DCT Industrial JV I General Partnership, a Delaware general partnership,
  its sole member

  
	
   

  	
   

  
	
   

  	
  By: DCT
  Industrial Fund II LLC, a Delaware limited liability company, a general
  partner

  
	
   

  	
   

  
	
   

  	
  By: DCT
  Industrial Operating Partnership LP, a Delaware limited partnership, f/k/a
  Dividend Capital Operating Partnership LP, its sole member

  
	
   

  	
   

  
	
   

  	
  By: DCT
  Industrial Trust Inc., a Maryland corporation, f/k/a Dividend Capital Trust
  Inc., its general partner

  

 

	
   

  	
   

  	
  By:

  	
  /s/
  Bonnie Micus

  	
   

  
	
   

  	
   

  	
   

  	
  Bonnie
  Micus

  
	
   

  	
   

  	
   

  	
  Senior
  Vice President/Director of Property

  
	
   

  	
   

  	
   

  	
  Management

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Date:

  	
  1/2/07

  	
   

  
	
   

  	
   

  
						

 

	
   

  	
  PROPERTY
  MANAGER:

  
	
   

  	
   

  
	
   

  	
  The Flynn Company

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ William
  F. Henderson

  	
   

  
	
   

  	
  Name: William
  F. Henderson

  
	
   

  	
  Title:
  Partner

  
	
   

  	
   

  
	
   

  	
  Date:

  	
  12/22/06

  	
   

  
					

 

17

 

EXHIBIT A
to Property Management Agreement dated December 8,
2006 

by and between DCT Silver Springs LLC and The Flynn Company

 

LIST OF PROPERTIES COVERED BY THIS AGREEMENT

 

Addresses:

 

270 Old Silver Spring Road, Mechanicsburg, PA

 

Which properties are more particularly described as follows:

 

ALL THAT CERTAIN tract or land
situate in the Township of Hampden, County of Cumberland and State of
Pennsylvania, shown on and described in accordance with the Topographical Plan
for Kinney Shoe Corporation as prepared by O.P Raffensperger Associates dated
November 14, 1979, as revised February 22, 1980.

 

BEGINNING at a point in the
centerline of Old Silver Spring Road at the dividing line between Lots 5-A and
2: thence along the centerline of Old Silver Spring Road and beyond crossing
New Silver Road (1 R. 21051) North 30 degrees 20 minutes a distance of 411.17
feet to a point, thence along lands of W.D.C. Incorporated North 11 degrees 15
minutes East a distance of 161.03 feet to a point thence crossing New Silver
Spring Road (L.R 21051) and along lands of Cresline Plastic Pipe Company. Inc.,
North 76 degrees 19 minutes 38 seconds East a distance of 689.08 feet to a
point; thence along Lot No. 6 by a curve to the left having a radius of 725.00
feet to an arc distance of 210.82 feet (said curve having a chord bearing of
South 22 degrees 00 minutes 11 seconds East and a distance of 210.08 feet) to a
point, thence continuing along Lot No. 6 and 5, South 30 degrees 20 minutes
East a distance of 141.12 feet to a point, thence along Lot No. 5-A South 59
degrees 40 minutes West a distance of 749.80 feet to the place of BEGINNING.

 

CONTAINING 7.936 acres and
being Lot No. 2 of the Final Subdivision Plan for Harrisburg Area Industrial
Development Corporation recorded in the Office of the Recorder of Deeds in and
for Cumberland County in Plan Book 34, page 106.

 

BEING the same premises which
Kinney Service Corporation, a Delaware corporation by deed dated May 29, 1997
and recorded June 6, 1997 in Deed Book 159 page 24 granted and conveyed unto
First Industrial Development Services Group Inc., a Maryland corporation, in fee.

 

Property Parcel No. 10-21-0287-017

 

18

 

EXHIBIT B
to Property Management Agreement dated December 8,
2006 

by and between DCT Silver Springs LLC and The Flynn Company

 

SCHEDULE OF PROPERTY MANAGEMENT FEES

 

	
  Property

  	
   

  	
  Monthly Minimum

  	
   

  
	
  270 Old
  Silver Spring Road, Mechanicsburg, PA

  	
   

  	
  $

  	
  1,501

  	
   

  
					

 

19

 

EXHIBIT C
to Property Management Agreement dated December 8,
2006 

by and between DCT Silver Springs LLC and The Flynn Company

 

DESIGNATED SIGNATORIES

 

	
  DCT SILVER SPRINGS LLC

  
	
   

  
	
  Matt Murphy, Senior Vice President

  
	
   

  
	
   

  
	
   

  
	
   

  
	
   

  
	
   

  
	
  THE FLYNN COMPANY

  
	
   

  
	
   

  
	
  Kevin D Flynn, President

  	
   

  
	
   

  
	
   

  
	
  William F. Henderson, Controller

  	
   

  
			

 

20

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