Document:

Exhibit 10.36

 

ASSIGNMENT AND ASSUMPTION

OF AGREEMENT OF PURCHASE AND SALE

AND JOINT ESCROW INSTRUCTIONS

 

This Assignment and
Assumption of Agreement of Purchase and Sale and Joint Escrow Instructions (“Assignment”)
is entered into by and between DCT INDUSTRIAL
OPERATING PARTNERSHIP LP, a Delaware limited partnership (“Assignor”)
and TRT-DCT
HANSON WAY LP, a Delaware limited partnership(“Assignee”),
dated effective as of December     , 2006 (the “Effective
Date”).

 

RECITALS

 

A.                                    Pursuant to the
terms of that certain Agreement of Purchase and Sale and Joint Escrow
Instructions (the “Agreement”) dated effective as of November 22,
2006, by and between Assignor, as Purchaser, and ARI-HDC, LLC, a Delaware
limited liability company; ARI-HDC 1, LLC, a Delaware limited liability
company; ARI-HDC 2, LLC, a Delaware limited liability company; ARI-HDC 3,
LLC, a Delaware limited liability company; ARI-HDC 4, LLC, a Delaware
limited liability company; ARI-HDC 5, LLC, a Delaware limited liability
company; ARI-HDC 6, LLC, a Delaware limited liability company; ARI-HDC 7,
LLC, a Delaware limited liability company; ARI-HDC 8, LLC, a Delaware
limited liability company; ARI-HDC 9, LLC, a Delaware limited liability
company; ARI-HDC 10, LLC, a Delaware limited liability company; ARI-HDC 11,
LLC, a Delaware limited liability company; ARI-HDC 12, LLC, a Delaware
limited liability company; ARI-HDC 13, LLC, a Delaware limited liability
company; ARI-HDC 14, LLC, a Delaware limited liability company; ARI-HDC 15,
LLC, a Delaware limited liability company; ARI-HDC 16, LLC, a Delaware
limited liability company; and ARI-HDC 17, LLC, a Delaware limited
liability company (collectively, the “Sellers”),
as Sellers, Assignor agreed to purchase the Real Property (as such term is
defined in the Agreement) consisting of, among other things, all of Sellers’
right to certain items relating to the Real Property, consisting of the Land
and Improvements (as such terms are defined in the Agreement) located at 2030
Hanson Way, Woodland, Yolo County, California.

 

B.                                    Assignor desires to
assign, without recourse, representation or warranty, all of its rights,
benefits, liabilities and obligations arising under the Agreement (and related
documents) pertaining to the Real Property to Assignee, and Assignee desires to
assume all of said rights, benefits, liabilities and obligations pertaining to
the Real Property.

 

NOW, THEREFORE, in
consideration of the foregoing promises, the mutual undertakings of the parties
set forth herein and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged by the parties, the parties agree
as follows:

 

1.                                      Recitals.
The above recitals are incorporated herein by reference.

 

2.                                      Assignment and
Assumption. Pursuant to the terms and conditions of Section 20
of the Agreement, Assignor hereby transfers, assigns and conveys, without
recourse, representation or warranty, express or implied, all of Assignor’s
rights, interests, liabilities and obligations in and to Real Property and all
of Assignor’s rights, interests, liabilities and obligations under the

 

 

Agreement (and related documents) to
Assignee; provided, however, Assignor shall not be relieved of its obligations,
as stipulated in the Agreement. Assignee hereby assumes all such rights,
interests, liabilities and obligations of Assignor under the Agreement (and
related documents) relating to such Real Property assigned to it above.

 

3.                                      Effective Date.
The assignment and assumption described in Paragraph 2 above shall be effective
as the Effective Date.

 

4.                                      Successors and
Assigns. This Assignment shall be binding upon and inure to the benefit of
the parties’ successors and assigns.

 

5.                                      Entire
Agreement; Modifications. This Assignment contains the entire understanding
between the parties regarding its subject matter and supersedes all other
representations, warranties or agreements, express or implied, written or oral.
This Assignment may only be modified in writing executed by all parties.

 

6.                                      Facsimile and
Counterparts. This Assignment may be executed in counterparts and evidenced
by facsimile, all of which shall be binding as a fully executed single original
of the Assignment.

 

This Assignment has been
executed effective as of the date first written above.

 

	
   

  	
  ASSIGNOR:

  
	
   

  	
   

  
	
   

  	
  DCT
  INDUSTRIAL OPERATING PARTNERSHIP LP,

  
	
   

  	
  a
  Delaware limited partnership

  
	
   

  	
   

  
	
   

  	
  By:

  	
  DCT
  Industrial Trust Inc.,

  
	
   

  	
   

  	
  a
  Maryland corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  W. Jeffrey Jones

  
	
   

  	
   

  	
   

  	
  W.
  Jeffrey Jones, Vice President

  

 

2

 

	
   

  	
  ASSIGNEE:

  
	
   

  	
   

  
	
   

  	
  TRT-DCT HANSON WAY LP,

  
	
   

  	
  a
  Delaware limited partnership

  
	
   

  	
   

  
	
   

  	
  By:

  	
  TRT-DCT
  HANSON WAY GP LLC, a Delaware limited

  
	
   

  	
   

  	
  liability
  company, its general partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  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/
  W. Jeffrey Jones

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  W.
  Jeffrey Jones,

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Vice
  President

  

 

3Exhibit 10.37

 

PROPERTY
MANAGEMENT AGREEMENT

 

This Property Management
Agreement (the “Agreement”) made as of the 5th day of December,
2006, by and between TRT-DCT Hanson Way LP, a Delaware limited partnership (“Owner”),
and CB RICHARD ELLIS, INC., a Delaware 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 7,
2006, or the day of closing, whichever comes last, 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).

 

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

 

1

 

(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.

 

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

 

2

 

the
term of this Agreement that the individual Property is subject to this
Agreement, a property management fee equal to the greater of 2% of gross
receipts or 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

 

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

 

3

 

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 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

 

4

 

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 defend (with counsel selected by Property Manager and reasonably
acceptable to Owner, with Owner having the right, at its option to be
represented by advisory counsel of its own selection and at its own expense),
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:

 

5

 

(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 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, and in the name 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

 

6

 

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 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 “Project
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; or 4% of the total budgeted construction cost
exceeding $50,001 and up to $200,000; or 3% of the total budgeted construction
costs exceeding $200,001 and up to $350,000; or 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 Project 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;

 

7

 

(C)                               except
for any Work which is less than $2,500, receive all submitted bids and evaluate
such bids. In evaluating the submitted bids, Project 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 submitting the bid, and any other
relevant factors that Project Manager determines should be taken into account
when evaluating the submitted bids. Once Project Manager evaluates all the
submitted bids, Project 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, Project 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 determine that all said improvements, replacements,
and repairs generally comply with the construction contract requirements and
all applicable laws, including but not limited to local building codes and
ordinances;

 

(E)                                determine
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 replacements
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

 

8

 

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 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.
Owner 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.

 

9

 

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

 

(n)                                 Environmental
Risk Management.

 

(A)                               Property
Manager shall not place or cause to be placed on the Property, other than in
the ordinary course of performing its obligations under this Agreement and in
compliance with applicable law, any hazardous or toxic wastes or substances, as
such terms are defined by federal, state or municipal statutes or regulations
promulgated thereunder (collectively, “Hazardous Materials”). If Property
Manager discovers the existence of any Hazardous Materials on the Property,
Property Manager shall immediately notify Owner. If such Hazardous Materials
were placed or caused to be placed on the Property by Property Manager other
than in the ordinary course of performing its obligations under this Agreement
and in compliance with applicable law, Property Manager shall promptly notify
Owner in writing thereof and, at Owner’s option, shall, at Property Manager’s
cost, diligently arrange for and complete the immediate removal thereof in
accordance with applicable laws and Owner’s directions. Except as expressly
provided herein to the contrary, Property Manager shall not be responsible for
any Hazardous Materials present on the Property prior to the Effective Date
hereof, unless deposited thereon by Property Manager, nor shall Property
Manager be responsible for any Hazardous Materials brought onto the Property by
any person or entity other than Property Manager. Property Manager shall
immediately notify Owner of any notice received by Property Manager from any
governmental authority of any actual or threatened violation of any applicable
laws, regulations or ordinances governing the use, storage or disposal of any
Hazardous Materials and shall cooperate with Owner in responding to such notice
and correcting or contesting any alleged violation at Owner’s expense.

 

(B)                               Owner
acknowledges that Property Manager is not an environmental consultant and does
not have expertise or qualifications in the field of Hazardous Materials. Therefore,
with respect to any environmental conditions or issues pertaining to Hazardous
Materials at the Property, Owner agrees that Property Manager and its officers,
directors, agents, partners, shareholders and employees are not and shall not
be deemed “operators” of the Property or any tenant operations therein or
thereon (or have any comparable legal status) for purposes of any federal,
state or local laws regarding Hazardous Materials. Furthermore, unless agreed
to in a separate written document signed by Owner and Property Manager,
Property Manager shall not be responsible for the storage,

 

10

 

transportation,
disposal, abatement, cleanup or removal of Hazardous Materials on, in or at the
Property, except as expressly provided above.

 

(C)                               Owner
agrees to notify Property Manager if Owner becomes aware of the presence of any
Hazardous Materials on, in or at the Property.

 

(D)                               Asbestos
and Similar Compliance Matters. If the Property is subject to the Occupational
Safety and Health Administration’s regulations relating to asbestos, or to any
state law or regulation relating to asbestos (such as California’s Connelley
Act) or to any state law or regulation relating to carcinogenic or toxic
chemicals (such as California’s Proposition 65), Owner , at its expense, shall
be responsible for compliance.

 

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 covered under
Property Manager’s Employee Theft Insurance required in Section 7(c)(v) below,
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 covered under Property Manager’s Employee Theft Insurance
required in Section 7(c)(v) below, 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

 

11

 

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.

 

(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 will obtain and keep in force (or cause to be obtained and
kept 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

 

12

 

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.

 

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-insured retention amounts under Owner’s insurance shall be
solely for the account of Owner, and 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 a waiver of all rights of subrogation against Owner for
injuries sustained by Property Manager’s employees while working at any
Property.

 

13

 

(ii)                                  Commercial General Liability, on an
occurrence basis, including Bodily Injury and Property Damage Liability,
Personal and Advertising Injury Liability insuring the Property Manager’s
operations with respect to the Property under its management 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
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 a loss payee and to provide evidence of coverage satisfactory to Owner
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: (i) any claim by any
employee of Property Manager relating to any injuries sustained by such

 

14

 

employee and occurring at the Property; (ii) any
gross negligence or willful misconduct of Property Manager, its affiliates, its
independent contractors, or any of their respective agents, employees or
independent contractors, (iii) 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, (iv) any
act outside the scope of Property Manager’s authority hereunder, and Property
Manager shall have the right to select and retain legal counsel reasonably
acceptable to Owner, at Property Manager’s sole expense, and 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, and Owner shall have the right, at its option, 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
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 contractors shall be required to
execute full type-one indemnities in favor of Owner and Property Manager, and
all policies of insurance maintained by such contractors shall name Owner,
Property Manager and all other parties and/or entities required by Owner as
additional insureds on primary and non-contributing terms for all ongoing and
completed operations of such contractor and its subcontractors for as long as
Owner or Property Manager may be exposed to loss arising from such contractor’s
or subcontractor’s operations.

 

15

 

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 Mortgagee. 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 Mortgage, the
Property Manager shall continue to perform its obligation under this Agreement
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:

 

16

 

To Property
Manager:     CB
Richard Ellis, Inc

555 Capitol Mall, Suite 100

Sacramento, CA 95814

Attn: Iris M. Andre

Telephone:  916-446-8224

Telefax:       916-446-8741

 

To Owner:                   TRT-DCT Hanson Way LP

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.

 

(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.

 

17

 

(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

 

18

 

SIGNATURE PAGE TO PROPERTY
MANAGEMENT AGREEMENT

BY AND BETWEEN
TRT-DCT HANSON WAY LP AND CB RICHARD ELLIS, INC.

DATED DECEMBER 7, 2006

 

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

 

	
   

  	
  OWNER:

  
	
   

  	
   

  
	
   

  	
  TRT-DCT Hanson Way LP, a Delaware limited partnership

  
	
   

  	
   

  
	
   

  	
  By: TRT-DCT HANSON WAY GP LLC, a Delaware limited liability
  company, its general partner

  
	
   

  	
   

  
	
   

  	
  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, its sole
  member

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  

 

	
   

  	
   

  	
  By:

  	
  /s/ Bonnie Micus

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Bonnie Micus

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President/

  Director of Property Management

  	
   

  
	
   

  	
   

  	
  Date:

  	
  12-8-06

  	
   

  
	
   

  	
   

  

 

	
   

  	
  PROPERTY MANAGER:

  
	
   

  	
   

  
	
   

  	
  CB RICHARD ELLIS, INC.

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Iris M. Andre

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Iris M. Andre

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Managing Director

  	
   

  
	
   

  	
   

  	
  Date:

  	
  12/6/06

  	
   

  

 

19

 

EXHIBIT A

to Property Management Agreement dated December 7, 2006

by and between TRT-DCT Hanson Way LP and CB Richard Ellis, Inc.

LIST OF PROPERTIES COVERED BY THIS AGREEMENT

 

Addresses

 

2030 Hanson Way, Woodland, CA

 

Which property(ies) are more particularly described as follows:

 

THE LAND REFERRED TO HEREIN BELOW IS SITUATED
IN THE CITY OF WOODLAND, COUNTY OF YOLO, STATE OF CALIFORNIA AND IS DESCRIBED
AS FOLLOWS:

 

PARCEL ONE:

 

PARCELS 3 AND 4, AS SAID PARCELS APPEAR ON
PARCEL MAP NO. 4339 FILED NOVEMBER 17, 1997 IN BOOK 12 OF PARCEL MAPS, AT
PAGES 82 AND 83, YOLO COUNTY RECORDS, AND BEING MORE PARTICULARLY DESCRIBED AS
FOLLOWS:

 

BEGINNING AT THE SOUTHEAST CORNER OF SAID
PARCEL 3; THENCE, FROM SAID POINT OF BEGINNING, ALONG THE SOUTH LINE OF SAID
PARCELS 3 AND 4, NORTH 89°49’21” WEST 1313.09 FEET TO THE SOUTHWEST CORNER OF
SAID PARCEL 4; THENCE, ALONG THE WEST LINE OF SAID PARCEL 4, THE FOLLOWING TWO (2) COURSES:
(1) NORTH 00°34’29” EAST 724.05 FEET; AND (2) NORTH 45°34’17” EAST 70.65
FEET TO THE NORTHWEST CORNER OF SAID PARCEL 4; THENCE, EAST ALONG THE NORTH
LINE OF SAID PARCEL 4 AND PARCEL 3, SOUTH 89°25’53” EAST 1262.73 FEET TO THE
NORTHEAST CORNER OF SAID PARCEL 3; THENCE, SOUTH ALONG THE EAST LINE OF SAID
PARCEL 3, SOUTH 00°32’49” WEST 765.05 FEET TO THE POINT OF BEGINNING, AS
DESCRIBED IN THE CERTIFICATE OF COMPLIANCE RECORDED MARCH 20, 2002,
DOCUMENT NO. 2002-0011794

 

EXCEPTING THERE FROM ALL MINERAL, COAL,
CARBONS HYDROCARBONS, OIL, GAS CHEMICAL, ELEMENTS AND COMPOUNDS WHETHER IN
SOLID, LIQUID, OR GASEOUS FORM AND ALL STEAM AND OTHER FORMS OF THERMAL
ENERGY IN OR UNDER A PLANE PARALLEL TO AND FIVE HUNDRED (500) FEET BELOW THE PRESENT
SURFACE OF THE ABOVE DESCRIBED LAND PROVIDED, HOWEVER, THAT SELLER SHALL HAVE
NO RIGHT OF ENTRY UPON THE SURFACE OF SAID LAND NOR TO USE SAID LAND OR ANY
PORTION THEREOF ABOVE SAID PLANE OF SAID LAND OF ANY PURPOSE WHATSOEVER.

 

PARCEL TWO:

 

A NON-EXCLUSIVE EASEMENT FOR FIRE ACCESS OVER
THE WESTERLY 30 FEET OF PARCEL 2 AS SHOWN ON PARCEL MAP NO. 4339 FILED IN BOOK
12 OF PARCEL MAPS, AT PAGE 82 AND 83, YOLO COUNTY RECORDS, AND AS SET FORTH IN
THE DOCUMENT ENTITLED “RECIPROCAL EASEMENT AND RESTRICTIVE COVENANT AGREEMENT’
RECORDED MARCH 20, 2000, INSTRUMENT NO. 2000-6565, SUBJECT TO THE TERMS
AND CONDITIONS CONTAINED THEREIN.

 

PARCEL THREE:

 

A 30 FOOT PRIVATE UTILITY EASEMENT ACROSS
PARCEL 2 AS SHOWN ON PARCEL MAP NO. 4339 FILED IN BOOK 12 OF PARCEL MAPS, AT
PAGE 82 AND 83, YOLO COUNTY RECORDS.

 

APN: 027-350-571

 

20

 

EXHIBIT B

to Property Management Agreement dated December 7, 2006

by and between TRT-DCT Hanson Way LP and CB Richard Ellis, Inc.

SCHEDULE OF PROPERTY MANAGEMENT FEES

 

	
  Property Address

  	
   

  	
  Monthly Minimum

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2030 Hanson
  Way

  	
   

  	
  $

  	
  3,142

  	
   

  
					

 

21

 

EXHIBIT C

to Property Management Agreement dated December 7, 2006

by and between TRT-DCT Hanson Way LP and CB Richard Ellis, Inc.

DESIGNATED SIGNATORIES

 

	
  TRT-DCT Hanson Way LP

  
	
   

  
	
  Matthew T. Murphy, Senior Vice President

  
	
   

  
	
   

  
	
   

  
	
   

  
	
   

  
	
   

  
	
   

  
	
   

  
	
  CB RICHARD ELLIS, INC.

  
	
   

  
	
   

  
	
  Ann Marie Watters, Controller

  	
   

  
	
   

  
	
   

  
	
  Linda Cabrera, Accountant

  	
   

  
	
   

  
	
   

  
	
   

  
			

 

22

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