Document:

EX-4.2

 Exhibit 4.2 

EXECUTION VERSION 
  

 
 STARBUCKS
CORPORATION 
 $3,000,000,000 

$1,250,000,000 3.800% Senior Notes due 2025 

$750,000,000 4.000% Senior Notes due 2028 

$1,000,000,000 4.500% Senior Notes due 2048 
  

 
 FOURTH
SUPPLEMENTAL INDENTURE 
 Dated as of August 10, 2018 

To 
 INDENTURE 

Dated as of September 15, 2016 
  

 
 U.S. BANK
NATIONAL ASSOCIATION 
 Trustee 
  

 

 TABLE OF CONTENTS 

 

							
	 	 	 	  	Page	 
		
	 ARTICLE 1.
	  			
	 DEFINITIONS AND INCORPORATION BY REFERENCE
	  			
			
	Section 1.01    	 	 Relationship with Base Indenture
	  	 	1	 
	Section 1.02	 	 Definitions
	  	 	2	 
	Section 1.03	 	 Other Definitions
	  	 	8	 
		
	 ARTICLE 2.
	  			
	 THE NOTES
	  			
	Section 2.01	 	 Form and Dating
	  	 	8	 
	Section 2.02	 	 Transfer and Exchange
	  	 	9	 
	Section 2.03	 	 Issuance of Additional Notes
	  	 	14	 
		
	 ARTICLE 3.
	  			
	 REDEMPTION AND PREPAYMENT
	  			
	Section 3.01	 	 Notice of Redemption
	  	 	14	 
	Section 3.02	 	 Notes Redeemed in Part
	  	 	14	 
	Section 3.03	 	 Optional Redemption
	  	 	14	 
	Section 3.04	 	 Mandatory Redemption
	  	 	15	 
		
	 ARTICLE 4.
	  			
	 PARTICULAR COVENANTS
	  			
	Section 4.01	 	 Liens
	  	 	15	 
	Section 4.02	 	 Offer to Purchase Upon Change of Control Triggering Event
	  	 	17	 
	Section 4.03	 	 Sale and Lease-Back Transactions
	  	 	19	 
		
	 ARTICLE 5.
	  			
	 SUCCESSORS
	  			
	Section 5.01	 	 Merger, Consolidation or Sale of Assets
	  	 	20	 
		
	 ARTICLE 6.
	  			
	 DEFAULTS AND REMEDIES
	  			
	Section 6.01	 	 Events of Default
	  	 	21	 
		
	 ARTICLE 7.
	  			
	 MISCELLANEOUS
	  			
	Section 7.01	 	 Trust Indenture Act Controls
	  	 	22	 
	Section 7.02	 	 Governing Law
	  	 	22	 
	Section 7.03	 	 Successors
	  	 	22	 
	Section 7.04	 	 Severability
	  	 	22	 
	Section 7.05	 	 Counterpart Originals
	  	 	22	 
	Section 7.06	 	 Table of Contents, Headings, Etc
	  	 	22	 

  
 i 

 TABLE OF CONTENTS 

(continued) 
  

 EXHIBITS 
  

			
	Exhibit A	  	 FORM OF 2025 NOTE

	Exhibit B	  	 FORM OF 2028 NOTE

	Exhibit C	  	 FORM OF 2048 NOTE

  
 ii 

 FOURTH SUPPLEMENTAL INDENTURE dated as of August 10, 2018, by and between Starbucks
Corporation, a Washington corporation (the “Company”), and U.S. Bank National Association, a national banking association organized and existing under the laws of the United States of America, as trustee (the
“Trustee”). 
 The Company has heretofore executed and delivered to the Trustee an indenture, dated as of
September 15, 2016 (the “Base Indenture”, and together with this Fourth Supplemental Indenture, the “Indenture”), providing for the issuance from time to time of one or more series of the
Company’s securities. 
 The Company desires and has requested the Trustee pursuant to Section 9.01 of the Base Indenture to join
with it in the execution and delivery of this Fourth Supplemental Indenture in order to supplement the Base Indenture as, and to the extent set forth herein to provide for the issuance and the terms of the Notes (as defined below). 

Section 9.01 of the Base Indenture provides that the Company and the Trustee, without the consent of any holders of the Company’s
Securities, may amend or waive certain terms and conditions in the Base Indenture as permitted by Sections 2.01 and 2.02 thereof. 
 The
execution and delivery of this Fourth Supplemental Indenture has been duly authorized by a resolution of the Board of Directors of the Company or a duly authorized committee thereof. 

All conditions and requirements necessary to make this Fourth Supplemental Indenture a valid, binding and legal instrument in accordance with
its terms have been performed and fulfilled by the parties hereto and the execution and delivery thereof have been in all respects duly authorized by the parties hereto. 

The Company and the Trustee agree as follows for the benefit of each other and for the equal and ratable benefit of the Holders (as defined
herein) of the 3.800% Senior Notes due 2025 (the “2025 Notes”), 4.000% Senior Notes due 2028 (the “2028 Notes”) and 4.500% Senior Notes due 2048 (the “2048 Notes” and, together with the 2025 Notes
and the 2028 Notes, the “Notes”): 
 ARTICLE 1. 

DEFINITIONS AND INCORPORATION BY REFERENCE 

Section 1.01 Relationship with Base Indenture. 

The terms and provisions contained in the Base Indenture will constitute, and are hereby expressly made a part of this Fourth Supplemental
Indenture and the Company and the Trustee, by their execution and delivery of this Fourth Supplemental Indenture, expressly agree to such terms and provisions and to be bound thereby. However, to the extent any provision of the Base Indenture conflicts with the express provisions of this Fourth Supplemental Indenture, the provisions of this Fourth Supplemental Indenture will govern and be controlling. 

The Trustee accepts the amendment of the Base Indenture effected by this Fourth Supplemental Indenture and agrees to execute the trust created
by the Base Indenture as hereby amended, but only upon the terms and conditions set forth in this Fourth Supplemental Indenture, 

 
including the terms and provisions defining and limiting the liabilities and responsibilities of the Trustee in the performance of the trust created by the Base Indenture, and without limiting
the generality of the foregoing, the Trustee will not be responsible in any manner whatsoever for or with respect to any of the recitals or statements contained herein, all of which recitals or statements are made solely by the Company, or for or
with respect to (1) the validity or sufficiency of this Fourth Supplemental Indenture or any of the terms or provisions hereof, (2) the proper authorization hereof by the Company, (3) the due execution hereof by the Company or
(4) the consequences (direct or indirect and whether deliberate or inadvertent) of any amendment herein provided for, and the Trustee makes no representation with respect to any such matters. In entering into this Fourth Supplemental Indenture,
the Trustee shall be entitled to the benefit of every provision of the Indenture relating to the conduct or affecting the liability or affording protection to the Trustee, whether or not elsewhere herein so provided. 

Section 1.02 Definitions. Capitalized terms used herein without definition shall have the respective meanings set forth in the
Base Indenture. The following terms have the meanings given to them in this Section 1.02: 
 “Additional Notes”
means any Notes (other than the Initial Notes) issued under this Fourth Supplemental Indenture in accordance with Section 2.03 hereof, as part of the same series as either series of the Initial Notes. 

“Applicable Procedures” means, with respect to any transfer or exchange of or for beneficial interests in any Global
Note, the rules and procedures of the Depositary that apply to such transfer or exchange. 
 “Attributable Debt”
with regard to a Sale and Lease-Back Transaction with respect to any Principal Property means, at the time of determination, the lesser of (1) the present value of the total net amount of lease payments required to be paid under such lease
during the remaining term thereof (after deducting the amount of rent to be received under non-cancellable subleases and including any period for which such lease has been extended), discounted at the greater
of (i) the weighted average interest rate per annum borne by the Notes or (ii) the interest rate inherent in such lease, in each case, as determined by the chief financial officer, treasurer or controller of the Company, compounded
semiannually, or (2) the sale price for the Principal Property so sold and leased multiplied by a fraction the numerator of which is the remaining portion of the base term of the lease included in such Sale and Lease-Back Transaction and the
denominator of which is the base term of such lease. In the case of any lease which is terminable by the lessee upon the payment of a penalty, such net amount shall be the lesser of (x) the net amount determined assuming termination upon the
first date such lease may be terminated (in which case the net amount shall also include the amount of the penalty, but shall not include any rent that would be required to be paid under such lease subsequent to the first date upon which it may be
so terminated) or (y) the net amount determined assuming no such termination. 
 For purposes of determining such Attributable Debt,
“lease payments” are the aggregate amount of the rent payable by the lessee with respect to the applicable period, after excluding amounts required to be paid on account-of
maintenance and repairs, water rates and similar utility charges. If and to the extent the amount of any lease payment during any future period is not definitely determinable under the lease in question, the amount of such lease payment will be
estimated in such reasonable manner as the chief financial officer, treasurer or controller of the Company may in good faith determine. 

  
 2 

 “Base Indenture” has the meaning set forth in the preamble to this
Fourth Supplemental Indenture, as amended, supplemented or otherwise modified from time to time in accordance with the terms thereof. 

“Below Investment Grade Rating Event” means with respect to a particular series of the Notes, the Notes are rated
below an Investment Grade Rating by each of the Rating Agencies on any date from the date of the public notice of an arrangement that could result in a Change of Control until the end of the 60-day period
following public notice of the occurrence of the Change of Control (which 60-day period shall be extended so long as the rating of such Notes is under publicly announced consideration for possible downgrade by
any of the Rating Agencies); provided that a Below Investment Grade Rating Event otherwise arising by virtue of a particular reduction in rating shall not be deemed to have occurred in respect of a particular Change of Control (and thus shall not be
deemed a Below Investment Grade Rating Event for purposes of the definition of Change of Control Triggering Event hereunder) if the Rating Agencies making the reduction in rating to which this definition would otherwise apply do not announce or
publicly confirm or inform the Trustee in writing at its request that the reduction was the result, in whole or in part, of any event or circumstance comprised of or arising as a result of, or in respect of, the applicable Change of Control (whether
or not the applicable Change of Control shall have occurred at the time of the Below Investment Grade Rating Event). 
 “Capital
Stock” means: (1) with respect to any Person that is a corporation, any and all shares, interests, participations or other equivalents (however designated and whether or not voting) of corporate stock, including each class of
Common Stock and Preferred Stock of such Person; and (2) with respect to any Person that is not a corporation, any and all partnership, membership or other equity interests of such Person. 

“Change of Control” means the occurrence of one or more of the following events: (1) any sale, lease, exchange or other
transfer (in one transaction or a series of related transactions) of all or substantially all of the assets of the Company to any Person or group of related Persons for purposes of Section 13(d) of the Exchange Act (a
“Group”), together with any Affiliates thereof (whether or not otherwise in compliance with the provisions of the Indenture); (2) the approval by the holders of Capital Stock of the Company of any plan or proposal for the
liquidation or dissolution of the Company (whether or not otherwise in compliance with the provisions of the Indenture); (3) any Person or Group shall become the owner, directly or indirectly, beneficially or of record, of shares representing more
than 50% of the aggregate ordinary voting power represented by the issued and outstanding Capital Stock of the Company; or (4) during any period of 24 consecutive months, a majority of the members of the Board of Directors or other equivalent
governing body of the Company cease to be composed of individuals (i) who were members of such Board of Directors or equivalent governing body on the first day of such period, (ii) whose election or nomination to such Board of Directors or
equivalent governing body was approved by individuals referred to in clause (i) above constituting at the time of such election or nomination at least a majority of such Board of Directors or equivalent governing body or (iii) whose
election or nomination to such Board of Directors or other equivalent governing body was approved by individuals referred to in clauses 

  
 3 

 
(i) and (ii) above constituting at the time of such election or nomination at least a majority of such Board of Directors or equivalent governing body (excluding, in the case of both clause
(ii) and clause (iii), any individual whose initial nomination for, or assumption of office as, a member of such Board of Directors or equivalent governing body occurs as a result of an actual or threatened solicitation of proxies or consents
for the election or removal of one or more directors by any person or group other than a solicitation for the election of one or more directors by or on behalf of the Board of Directors). 

Notwithstanding the foregoing, a transaction will not be deemed to involve a Change of Control if (i) the Company becomes a wholly owned
subsidiary of a holding company and (ii) the holders of the Voting Stock of such holding company immediately following such transaction are substantially the same as the holders of the Company’s Voting Stock immediately prior to such
transaction. 
 “Change of Control Triggering Event” means, with respect to a particular series of Notes, the
occurrence of both a Change of Control and a Below Investment Grade Rating Event. 
 “Common Stock” of any Person
means any and all shares, interests or other participations in, and other equivalents (however designated and whether voting or non-voting) of, such Person’s common stock, and includes, without
limitation, all series and classes of such common stock. 
 “Comparable Treasury Issue” means, with respect to each
Reference Treasury Dealer, the United States Treasury security selected by such Reference Treasury Dealer as having a maturity comparable to the remaining term of the applicable series of Notes (as measured from the redemption date) to be redeemed
that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term of those Notes (assuming, for this purpose, that
the notes mature on the applicable Par Call Date). 
 “Comparable Treasury Price” means, with respect to any
redemption date, (i) the average of the Reference Treasury Dealer Quotations for the redemption date, after excluding the highest and lowest Reference Treasury Dealer Quotations, or (ii) if the Company obtains fewer than four Reference
Treasury Dealer Quotations, the average of all Reference Treasury Dealer Quotations. 
 “Consolidated Net Tangible
Assets” means, as of any date on which the Company effects a transaction requiring such Consolidated Net Tangible Assets to be measured hereunder, the aggregate amount of assets (less applicable reserves) after deducting therefrom:
(a) all current liabilities, except for current maturities of long-term debt and obligations under capital leases; and (b) intangible assets, to the extent included in said aggregate amount of assets, all as set forth in the Company’s
most recent consolidated balance sheet and computed in accordance with GAAP applied on a consistent basis. 
 “Credit
Agreement” means the Credit Agreement, dated as of October 25, 2017, among the Company, as borrower, Bank of America, N.A., in its capacity as Administrative Agent, Swing Line Lender and L/C Issuer, Wells Fargo Bank, N.A.,
Citibank, N.A. and U.S. Bank 

  
 4 

 
National Association, as L/C Issuers, and the other Lenders from time to time a party thereto, including any related letters of credit, notes, guarantees, collateral documents, instruments and
agreements executed in connection therewith, in each case, as amended, restated, modified, renewed, refunded, replaced or refinanced from time to time by one or more credit facilities, in which case, the credit agreement or similar agreement
together with all other documents and instruments related thereto shall constitute the “Credit Agreement” under the Indenture, whether with the same or different agents and lenders. 

“Definitive Note” means a certificated Note registered in the name of the Holder thereof and issued in accordance with
Section 2.02 hereof, substantially in the form of either Exhibit A, Exhibit B or Exhibit C hereto except that such Note will not bear the Global Note Legend. 

“Depositary” means, with respect to the Notes, DTC and any successor thereto designated as depositary for the Notes
pursuant to Section 2.02 of this Fourth Supplemental Indenture. 
 “Fourth Supplemental Indenture” means this
Fourth Supplemental Indenture, dated as of the date hereof, by and among the Company and the Trustee, governing the Notes, as amended, supplemented or otherwise modified from time to time in accordance with the Base Indenture and the terms hereof.

 “Funded Debt” means Indebtedness, whether or not contingent, for money borrowed (including all obligations
evidenced by bonds, debentures, notes or similar instruments) owed or guaranteed by the Company or any consolidated subsidiary, and any of the debt which under GAAP would appear as debt on the consolidated balance sheet of the Company. 

“Global Note Legend” means the legend set forth in Section 2.02(f), which is required to be placed on all Global
Notes issued under this Fourth Supplemental Indenture. 
 “Global Notes” means, individually and collectively, each
of the Global Notes, in the forms of Exhibit A, Exhibit B and Exhibit C hereto issued in accordance with Section 2.01 hereof. 

“Holder” means a Person in whose name a Note is registered. 

“Indenture” means the Base Indenture, as supplemented by this Fourth Supplemental Indenture, governing the Notes, in
each case, as amended, supplemented or restated from time to time. 
 “Indirect Participant” means a Person who
holds a beneficial interest in a Global Note through a Participant. 
 “Initial Notes” means each of (1) the
first $1,250,000,000 aggregate principal amount of 2025 Notes, (2) the first $750,000,000 aggregate principal amount of 2028 Notes and (3) the first $1,000,000,000 aggregate principal amount of 2048 Notes issued under this Fourth
Supplemental Indenture on the date hereof. 

  
 5 

 “Investment Grade Rating” means a rating equal to or higher than
Baa3 (or the equivalent) by Moody’s and BBB- (or the equivalent) by S&P, or, in each case, if such Rating Agency ceases to rate either series of the Notes or fails to make a rating of such series of
Notes publicly available for reasons outside of the Company’s control, the equivalent investment grade credit rating by the replacement agency selected by the Company in accordance with the procedures described below. 

“Material Subsidiary” means each subsidiary of the Company that meets either of the following tests: (1) its
assets equal or exceed three percent of total assets of the Company and its subsidiaries on a consolidated basis, or (2) its revenues equal or exceed three percent of the total revenues of the Company and its subsidiaries on a consolidated
basis; provided that (i) if the subsidiaries that meet either of the tests in (1) or (2), when combined with revenues generated or assets owned directly by the Company (excluding any assets located or revenues generated at the subsidiary
level), aggregate less than 90% of the total assets or total revenues of the Company and its subsidiaries on a consolidated basis, the Company shall designate additional subsidiaries to constitute Material Subsidiaries until such threshold is met,
and (ii) once a subsidiary is deemed a Material Subsidiary, whether by virtue of the tests in (1) or (2) above, or a result of designation pursuant to part (i) of this proviso, such subsidiary shall continue to constitute a Material
Subsidiary throughout the term of either series of the Notes. 
 “Moody’s” means Moody’s Investors
Service, Inc., a subsidiary of Moody’s Corporation, and its successors. 
 “Nonrecourse Obligation” means
Indebtedness or lease payment obligations related to (i) the acquisition of a Principal Property not previously owned by the Company or any subsidiary or (ii) the financing of a project involving the development or expansion of any
Principal Property owned by the Company or any subsidiary, as to which the obligee with respect to such Indebtedness or obligation has no recourse to the Company or any subsidiary or any of the Company’s or its subsidiaries’ assets other
than such Principal Property so acquired, developed or expanded, as applicable. 
 “Notes” has the meaning assigned
to it in the preamble to this Fourth Supplemental Indenture. The Initial Notes of each series and the Additional Notes of such series will be treated as a single class for all purposes under this Fourth Supplemental Indenture, and unless the context
otherwise requires, all references to the Notes will include the Initial Notes and any Additional Notes. 
 “Par Call Date”
means (1) in the case of the 2025 Notes, June 15, 2025 (the date that is two months prior to the maturity date of the 2025 Notes), (2) in the case of the 2028 Notes, August 15, 2028 (the date that is three months prior to the maturity
date of the 2028 Notes) and (3) in the case of the 2048 Notes, May 15, 2048 (the date that is six months prior to the maturity date of the 2048 Notes). 

“Participant” means, with respect to the Depositary, a Person who has an account with the Depositary. 

  
 6 

 “Person” means any individual, corporation, partnership, joint
venture, association, joint-stock company, trust, unincorporated organization or limited liability company, or governmental or other entity. 

“Preferred Stock” of any Person means any Capital Stock of such Person that has preferential rights to any other
Capital Stock of such Person with respect to dividends or redemptions or upon liquidation. 
 “Principal Property”
means any individual facility or real property, or portion thereof, owned or hereafter acquired by the Company or any subsidiary and located within the United States of America, which, in the good faith opinion of the Company’s Chief
Executive Officer, President, or Chief Financial Officer, is of material importance to the total business conducted by the Company and its subsidiaries taken as a whole, provided that no such individual facility or property will be deemed of
material importance if its gross book value (excluding therefrom any equipment and before deducting accumulated depreciation) is less than 1.0% of the Consolidated Net Tangible Assets of the Company. With respect to any Sale and Lease-Back
Transaction or series of related Sale and Lease-Back Transactions, the determination of whether any property is a Principal Property shall be determined by reference to all properties affected by such transaction or series of transactions. As of the
date hereof, there are no Principal Properties of the Company. 
 “Rating Agencies” means (1) each of
Moody’s and S&P; and (2) if any of Moody’s or S&P ceases to rate the Notes or fails to make a rating of the Notes publicly available for reasons outside of the Company’s control, a “nationally recognized statistical
rating organization,” as defined in Section 3(a)(62) of the Exchange Act, selected by the Company (as certified by a resolution of its Board of Directors) as a replacement agency for Moody’s or S&P, or both of them, as the case
may be. 
 “Reference Treasury Dealer” means each of (1) Citigroup Global Markets Inc., J.P. Morgan Securities
LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated and Morgan Stanley & Co. LLC (or their respective affiliates which are Primary Treasury Dealers (as defined below)) and their respective successors; and (2) any other
Primary Treasury Dealer selected by the Company; provided, however, that if any of the foregoing shall cease to be a primary U.S. Government securities dealer in New York City (a “Primary Treasury Dealer”), the Company will substitute
another Primary Treasury Dealer. 
 “Reference Treasury Dealer Quotations” means, with respect to each Reference
Treasury Dealer and any redemption date, the average, as determined by a Reference Treasury Dealer, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to
the Company by that Reference Treasury Dealer at 5:00 p.m., New York City time, on the third Business Day preceding that redemption date. 

“S&P” means S&P Global Ratings, a division of S&P Global, Inc. 

“Sale and Lease-Back Transaction” means any arrangement with any Person providing for the leasing by the Company or
any subsidiary of any Principal Property, whether now owned 

  
 7 

 
or hereafter acquired, which Principal Property has been or is to be sold or transferred by the Company or such subsidiary to such Person and which lease is required by GAAP to be capitalized on
the balance sheet of such lessee. 
 “subsidiary” means any corporation, limited liability company or other similar
type of entity in which the Company and/or one or more of its subsidiaries together own voting stock, membership interests or other capital securities having the power to elect a majority of the Board of Directors or similar governing body of such
corporation, limited liability company or other similar type of entity, directly or indirectly. For the purposes of this definition, “voting stock” means stock or other capital securities which ordinarily have voting power for the
election of directors or similar governing body, whether at all times or only so long as no senior class of stock or other capital securities have such voting power by reason of any contingency. 

“Treasury Rate” means, with respect to any redemption date, the rate per annum equal to the semiannual equivalent
yield to maturity of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such redemption date. 

Section 1.03 Other Definitions. 
  

			
	 Term
	  	Defined
in Section
	 “Change of Control Date”
	  	4.02
	 “Change of Control Offer”
	  	4.02
	 “Change of Control Payment Date”
	  	4.02
	 “Change of Control Purchase Price”
	  	4.02
	 “DTC”
	  	2.02
	 “Event of Default”
	  	6.01
	 “Mortgage”
	  	4.01

 ARTICLE 2. 

THE NOTES 
 Section 2.01
Form and Dating. 
 (a) General. The Notes and the Trustee’s certificate of authentication will be substantially in the
forms of Exhibit A, Exhibit B and Exhibit C hereto. The Notes may have notations, legends or endorsements required by law, stock exchange rule or usage. Each Note will be dated the date of its authentication. The Notes will be
in denominations of $2,000 with integral multiples of $1,000 thereof. 
 The terms and provisions contained in the Notes will constitute,
and are hereby expressly made, a part of this Fourth Supplemental Indenture and the Company and the Trustee, by their execution and delivery of this Fourth Supplemental Indenture, expressly agree to such terms and provisions and to be bound thereby.
However, to the extent any provision of any Note conflicts with the express provisions of the Base Indenture, the provisions of the Note will govern and be controlling, and to the extent any provision of the Note conflicts with the express
provisions of this Fourth Supplemental Indenture, the provisions of this Fourth Supplemental Indenture will govern and be controlling. 

  
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 (b) Global Notes. Notes issued in global form will be substantially in the forms of
Exhibit A, Exhibit B and Exhibit C attached hereto (including the Global Note Legend thereon). Notes issued in definitive form will be substantially in the forms of Exhibit A, Exhibit B and Exhibit C
attached hereto (but without the Global Note Legend thereon). Each Global Note will represent such of the outstanding Notes as will be specified therein and each will provide that it will represent the aggregate principal amount of outstanding Notes
from time to time endorsed thereon and that the aggregate principal amount of outstanding Notes represented thereby may from time to time be reduced or increased, as appropriate, to reflect exchanges and redemptions. Any endorsement of a Global Note
to reflect the amount of any increase or decrease in the aggregate principal amount of outstanding Notes represented thereby will be made by the Trustee or the Custodian, at the direction of the Trustee, in accordance with instructions given by the
Holder thereof as required by Section 2.02 hereof. 
 Section 2.02 Transfer and Exchange. 

(a) Transfer and Exchange of Global Notes. A Global Note may not be transferred as a whole except by the Depositary to a nominee of the
Depositary, by a nominee of the Depositary to the Depositary or to another nominee of the Depositary, or by the Depositary or any such nominee to a successor Depositary or a nominee of such successor Depositary. All Global Notes of a series will be
exchanged by the Company for Definitive Notes if: 
 (1) the Company delivers to the Trustee notice from the Depositary that
(A) it is unwilling or unable to continue to act as Depositary and a successor Depositary is not appointed by the Company within 90 days after the date of such notice from the Depositary or (B) it is no longer a clearing agency registered
under the Exchange Act; or 
 (2) the Company in its sole discretion determines that the Global Notes of such series (in
whole but not in part) should be exchanged for Definitive Notes and delivers a written notice to such effect to the Trustee. 
 Upon the
occurrence of either of the preceding events in (1) or (2) above, Definitive Notes will be issued in such names and in any approved denominations as the Depositary will instruct the Trustee. Global Notes also may be exchanged or replaced, in
whole or in part, as provided in Sections 2.08 and 2.11 of the Base Indenture. Every Note authenticated and delivered in exchange for, or in lieu of, a Global Note or any portion thereof, pursuant to this Section 2.02 or Section 2.08 or
2.11 of the Base Indenture, will be authenticated and delivered in the form of, and will be, a Global Note. A Global Note may not be exchanged for another Note other than as provided in this Section 2.02(a); however, beneficial interests in a
Global Note may be transferred and exchanged as provided in Sections 2.02(b), (c) or (g) hereof. 
 (b) Transfer and Exchange of
Beneficial Interests in the Global Notes. The transfer and exchange of beneficial interests in the Global Notes will be effected through the Depositary, in accordance with the provisions of this Fourth Supplemental Indenture and the Applicable
Procedures. Transfers of beneficial interests in the Global Notes also will require compliance 

  
 9 

 
with either subparagraph (1) or (2) below, as applicable, as well as one or more of the other following subparagraphs, as applicable: 

(1) Transfer of Beneficial Interests in the Same Global Note. Beneficial interests in any Global Note may be transferred
to Persons who take delivery thereof in the form of a beneficial interest in a Global Note. No written orders or instructions will be required to be delivered to the Registrar to effect the transfers described in this Section 2.02(b)(1). 

(2) All Other Transfers and Exchanges of Beneficial Interests in Global Notes. In connection with all transfers and
exchanges of beneficial interests that are not subject to Section 2.02(b)(1) above, the transferor of such beneficial interest must deliver to the Registrar either: 

(i) a written order from a Participant or an Indirect Participant given to the Depositary in accordance with the Applicable
Procedures directing the Depositary to credit or cause to be credited a beneficial interest in another Global Note in an amount equal to the beneficial interest to be transferred or exchanged; and 

(ii) instructions given in accordance with the Applicable Procedures containing information regarding the Participant account
to be credited with such increase. 
 Upon satisfaction of all of the requirements for transfer or exchange of beneficial interests in
Global Notes contained in this Fourth Supplemental Indenture and the Notes or otherwise applicable under the Securities Act, the Trustee will adjust the principal amount of the relevant Global Note(s) pursuant to Section 2.02(g) hereof. 

(c) Transfer or Exchange of Beneficial Interests for Definitive Notes. 

If any holder of a beneficial interest in a Global Note proposes to exchange such beneficial interest for a Definitive Note or to transfer
such beneficial interest to a Person who takes delivery thereof in the form of a Definitive Note, then, upon satisfaction of the conditions set forth in Section 2.02(b)(2) hereof, the Trustee will cause the aggregate principal amount of the
applicable Global Note to be reduced accordingly pursuant to Section 2.02(g) hereof, and the Company will execute and, upon receipt of an Authentication Order, the Trustee will authenticate and deliver to the Person designated in the
instructions a Definitive Note in the appropriate principal amount. Any Definitive Note issued in exchange for a beneficial interest pursuant to this Section 2.02(c) will be registered in such name or names and in such authorized
denomination or denominations as the holder of such beneficial interest requests through instructions to the Registrar from or through the Depositary and the Participant or Indirect Participant. The Trustee will deliver such Definitive Notes
to the Persons in whose names such Notes are so registered. 

  
 10 

 (d) Transfer and Exchange of Definitive Notes for Beneficial Interests. 

A Holder of a Definitive Note may exchange such Note for a beneficial interest in a Global Note or transfer such Definitive Notes to a Person
who takes delivery thereof in the form of a beneficial interest in a Global Note at any time. Upon receipt of a request for such an exchange or transfer, the Trustee will cancel the applicable Definitive Note and increase or cause to be
increased the aggregate principal amount of one of the Global Notes. 
 If any such exchange or transfer from a Definitive Note to a
beneficial interest is effected pursuant to the previous paragraph at a time when a Global Note has not yet been issued, the Company will issue and, upon receipt of an Authentication Order, the Trustee will authenticate one or more Global Notes in
an aggregate principal amount equal to the principal amount of Definitive Notes so transferred. 
 A Holder of Definitive Notes may transfer
such Notes to a Person who takes delivery thereof in the form of a Definitive Note. 
 (e) Transfer and Exchange of Definitive Notes for
Definitive Notes. Upon request by a Holder of Definitive Notes and such Holder’s compliance with the provisions of this Section 2.02(e), the Registrar will register the transfer or exchange of Definitive Notes. Prior to such
registration of transfer or exchange, the requesting Holder will present or surrender to the Registrar the Definitive Notes duly endorsed or accompanied by a-written instruction of transfer in
form satisfactory to the Registrar duly executed by such Holder or by his attorney, duly authorized in writing. In addition, the requesting Holder will provide any additional certifications, documents and information, as applicable, required
pursuant to the following provisions of this Section 2.02(e). 
 (f) Legends. The following legends will appear on the face of
all Global Notes issued under this Fourth Supplemental Indenture unless specifically stated otherwise in the applicable provisions of this Fourth Supplemental Indenture. 

“THIS GLOBAL NOTE IS HELD BY THE DEPOSITARY (AS DEFINED IN THE FOURTH SUPPLEMENTAL INDENTURE GOVERNING THIS NOTE) OR ITS NOMINEE IN
CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (I) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO SECTION 2.02 OF THE FOURTH
SUPPLEMENTAL INDENTURE, (II) THIS GLOBAL NOTE MAY BE EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.02(a) OF THE FOURTH SUPPLEMENTAL INDENTURE, (III) THIS GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO
SECTION 2.12 OF THE BASE INDENTURE AND (IV) THIS GLOBAL NOTE MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF THE COMPANY. 

  
 11 

 UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN DEFINITIVE FORM, THIS NOTE
MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR
A NOMINEE OF SUCH SUCCESSOR DEPOSITARY. UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK) (“DTC”) TO THE COMPANY OR ITS AGENT FOR REGISTRATION
OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR SUCH OTHER
ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.” 
 (g) Cancellation and/or Adjustment of Global Notes. At such time as all beneficial interests in a particular Global
Note have been exchanged for Definitive Notes or a particular Global Note has been redeemed, repurchased or canceled in whole and not in part, each such Global Note will be returned to or retained and canceled by the Trustee in accordance with
Section 2.12 of the Base Indenture. At any time prior to such cancellation, if any beneficial interest in a Global Note is exchanged for or transferred to a Person who will take delivery thereof in the form of a beneficial interest in
another Global Note or for Definitive Notes, the principal amount of Notes represented by such Global Note will be reduced accordingly and an endorsement will be made on such Global Note by the Trustee or by the Depositary at the direction of the
Trustee to reflect such reduction; and if the beneficial interest is being exchanged for or transferred to a Person who will take delivery thereof in the form of a beneficial interest in another Global Note, such other Global Note will be increased
accordingly and an endorsement will be made on such Global Note by the Trustee or by the Depositary at the direction of the Trustee to reflect such increase. 

(h) General Provisions Relating to Transfers and Exchanges. 

(1) To permit registrations of transfers and exchanges, the Company will execute and, upon receipt of an Authentication Order,
the Trustee will authenticate Global Notes and Definitive Notes upon the Company’s order or at the Registrar’s request. 

(2) No service charge will be made to a holder of a beneficial interest in a Global Note or to a Holder of a Definitive Note
for any registration of transfer or exchange, but the Company or the Trustee may require payment of a sum sufficient to cover any transfer tax or similar governmental charge payable in connection therewith

  
 12 

 
(other than any such transfer taxes or similar governmental charge payable upon exchange or transfer pursuant to Section 4.02 hereof and Sections 2.11, 3.06 and 9.05 of the Base Indenture).

 (3) The Registrar will not be required to register the transfer of or exchange any Note selected for redemption in whole
or in part, except the unredeemed portion of any Note being redeemed in part. 
 (4) All Global Notes and Definitive Notes
issued upon any registration of transfer or exchange of Global Notes or Definitive Notes will be the valid obligations of the Company, evidencing the same debt, and entitled to the same benefits under this Fourth Supplemental Indenture, as the
Global Notes or Definitive Notes surrendered upon such registration of transfer or exchange. 
 (5) The Company will not be
required: 
 (A) to issue, to register the transfer of or to exchange any Notes during a period of 15 days before the day of
any selection of Notes for redemption under Section 3.02 of the Base Indenture and ending at the close of business on the day of selection; 

(B) to register the transfer of or to exchange any Note so selected for redemption in whole or in part, except the unredeemed
portion of any Note being redeemed in part; or 
 (C) to register the transfer of or to exchange a Note between a record
date and the next succeeding interest payment date. 
 (6) Prior to due presentment for the registration of a transfer of any
Note, the Trustee, any Agent and the Company may deem and treat the Person in whose name any Note is registered as the absolute owner of such Note for the purpose of receiving payment of principal of and interest on such Notes and for all other
purposes, and none of the Trustee, any Agent or the Company will be affected by notice to the contrary. 
 (7) The Trustee
will authenticate Global Notes and Definitive Notes in accordance with the provisions of Section 2.03 of the Base Indenture. 

(8) All certifications, certificates and Opinions of Counsel required to be submitted to the Registrar pursuant to this
Section 2.02 to effect a registration of transfer or exchange may be submitted by facsimile. 
 (9) The Trustee shall
have no obligation or duty to monitor, determine or inquire as to compliance with any restrictions on transfer imposed under this Fourth Supplemental Indenture or under applicable law with respect to any transfer of any interest in any Note other
than to require delivery of such certificates and other documentation or evidence as are expressly required by, and to do so if and when expressly required by the terms of, this Fourth Supplemental Indenture, and to examine the same to determine
substantial compliance as to form with the express requirements hereof. 

  
 13 

 (10) Neither the Trustee nor any Agent shall have any responsibility for any
actions taken or not taken by the Depositary. 
 Section 2.03 Issuance of Additional Notes. 

The Company will be entitled, upon delivery of an Officer’s Certificate and an Opinion of Counsel, to issue Additional Notes of a series
under this Fourth Supplemental Indenture which will have identical terms as the Initial Notes of such series issued on the date hereof, other than with respect to the date of issuance, and in some cases, issue price and the first interest payment
date. The Initial Notes of each series issued on the date hereof and any Additional Notes of such series issued will be treated as a single class for all purposes under this Fourth Supplemental Indenture. 

With respect to any Additional Notes, the Company will set forth in a resolution of its Board of Directors and an Officer’s Certificate,
a copy of each which will be delivered to the Trustee, the following information: 
 (a) the aggregate principal amount of such Additional
Notes to be authenticated and delivered pursuant to this Fourth Supplemental Indenture; and 
 (b) the issue price, the issue date and the
CUSIP number of such Additional Notes. 
 ARTICLE 3. 

REDEMPTION AND PREPAYMENT 

Section 3.01 Notice of Redemption. 

The Company will deliver to the Trustee, at least 15 but not more than 60 days prior to the redemption date (or such shorter period as the
Trustee in its sole discretion may allow), an Officer’s Certificate requesting that the Trustee give such notice and setting forth the information to be stated in such notice as provided in Section 3.03 of the Base Indenture. 

Section 3.02 Notes Redeemed in Part. 

No Notes of a principal amount of $2,000 or less shall be redeemed in part. 

Section 3.03 Optional Redemption. 

At any time prior to the applicable Par Call Date, the Notes of the applicable series will be redeemable, in whole at any time or in part from
time to time, at the Company’s option, at a redemption price equal to the greater of: 
 (i) 100% of the aggregate
principal amount of the Notes to be redeemed; or 

  
 14 

 (ii) the sum of the present values of the remaining scheduled payments of
principal and interest on the Notes being redeemed that would be due if the Notes matured on the applicable Par Call Date (not including any portion of any payments of interest accrued to the redemption date) discounted to the redemption date on a
semiannual basis (assuming a 360-day year consisting of twelve 30-day months), at the Treasury Rate plus 15 basis points, in the case of the 2025 Notes, plus 20 basis
points, in the case of the 2028 Notes, or plus 25 basis points, in the case of the 2048 Notes 
 plus, in each case, accrued and unpaid
interest on the Notes being redeemed to the redemption date. 
 Calculation of the foregoing will be made by the Company or on the
Company’s behalf by such Person as the Company shall designate; provided, however, that such calculation shall not be a duty or obligation of the Trustee. 

At any time on and after the applicable Par Call Date, some or all of the Notes of the applicable series will be redeemable, at the
Company’s option, at a redemption price equal to 100% of the principal amount of the Notes to be redeemed plus accrued and unpaid interest on the principal amount being redeemed to the redemption date. 

On and after the redemption date, interest will cease to accrue on the Notes or portions thereof called for redemption as long as the Company
has deposited with the Paying Agent funds in satisfaction of the applicable redemption price. 
 Section 3.04 Mandatory
Redemption. 
 Except as set forth in Section 4.02, the Company is not required to make any mandatory redemption or sinking fund
payments with respect to the Notes. 
 ARTICLE 4. 

PARTICULAR COVENANTS 

Section 4.01 Liens. 

(a) The Company will not, and will not permit any of its subsidiaries to, issue, incur, create, assume or guarantee any Funded Debt secured by
a mortgage, deed of trust, security interest, pledge, lien, charge or other encumbrance (collectively, a “Mortgage”) upon any Principal Property or upon any shares of stock or Indebtedness of any subsidiary that owns any Principal
Property (whether such Principal Property, shares or Indebtedness are now existing or owed or hereafter created or acquired) without in any such case effectively providing, concurrently with the issuance, incurrence, creation, assumption or guaranty
of any such Funded Debt, or the grant of such Mortgage, that the Notes (together with, if the Company shall so determine, any other Indebtedness of or guaranty by the Company or such subsidiary ranking equally with the Notes) shall be secured
equally and-ratably with (or, at the Company’s option, prior to) such Funded Debt; provided that any Mortgage created for the benefit of the Holders of the Notes pursuant to this provision
shall provide by its terms that such Mortgage shall be automatically and unconditionally released and discharged upon the release and discharge of the Mortgage that resulted in such provision becoming applicable. The foregoing restriction,

  
 15 

 
however, will not apply to each of the following and therefore the following Mortgages (and the Funded Debt secured thereby), will be excluded from any computation under subsection (b) of
this Section 4.01 and Section 4.03(b): 
 (1) Mortgages on property, shares of stock or Indebtedness or other
assets of any Person existing at the time such Person becomes a subsidiary; 
 (2) Mortgages on property, shares of stock or
Indebtedness or other assets existing at the time of acquisition thereof by the Company or a subsidiary, or Mortgages thereon to secure the payment of all or any part of the purchase price thereof or the cost of construction, installation,
renovation, improvement or development thereon or thereof, or Mortgages on property, shares of stock or Indebtedness or other assets to secure any Indebtedness incurred or guaranteed prior to, at the time of, or within 360.days after, the latest of the acquisition thereof or, in the case of property, the completion of such construction, installation, renovation, improvement or development or the commencement of
substantial commercial operation of such property for the purpose of financing all or any part of the purchase price thereof, such construction, installation, renovation, improvement or development; 

(3) Mortgages in favor of the Company or a subsidiary to secure Funded Debt owing to the Company or to a subsidiary; 

(4) Mortgages existing on the date hereof; 

(5) Mortgages on property, shares of stock or Indebtedness or assets of a Person existing at the time such Person is merged
into or consolidated with the Company or a subsidiary or at the time of a sale, lease or other disposition of properties of such Person as an entirety or substantially as an entirety to the Company or a subsidiary; 

(6) Mortgages in favor of the United States of America or any state, territory or possession thereof (or the District of
Columbia), or any foreign government, or any department, agency, instrumentality or political subdivision of the United States of America or any state, territory or possession thereof (or the District of Columbia) or any foreign government, to
secure partial, progress, advance or other payments pursuant to any contract or statute or to secure any Indebtedness incurred or guaranteed for the purpose of financing all or any part of the purchase price or the cost of constructing or improving
the property subject to such Mortgages (including, but not limited to, Mortgages incurred in connection with pollution control or industrial revenue bonds or similar financing); 

(7) Mortgages created in connection with a project financed with, and created to secure, a Nonrecourse Obligation; or 

(8) extensions, renewals, refundings, or replacements, in whole or in part, of any Mortgage referred to in the foregoing
clauses; provided, however, that (A) the principal amount of Funded Debt secured thereby shall not exceed the principal amount of Funded Debt, plus any premium or fee payable in connection with any such extension, renewal,
refunding or replacement, so secured at the time of such extension, renewal, 

  
 16 

 
refunding or replacement and (B) such extension, renewal, refunding, or replacement Mortgages will be limited to all or part of the same property, shares of stock or Indebtedness or assets
and improvement or development thereon or thereof which secured the Indebtedness so secured at the time of such extension, renewal, refunding or replacement. 

(b) Notwithstanding the restrictions set forth in the first sentence of the preceding paragraph, the Company or any subsidiary may issue,
incur, create, assume or guarantee Funded Debt secured by a Mortgage which would otherwise be subject to such restrictions, without equally and ratably securing the .Notes, provided that
after giving effect thereto, the aggregate amount of all Funded Debt so secured by Mortgages (not including Funded Debt secured by Mortgages permitted under clauses (1) through (8) of the second sentence of paragraph (a) above) plus the
aggregate amount of all Attributable Debt in respect of Sale and Lease-Back Transactions relating to Principal Properties (excluding any Attributable Debt permitted to be incurred pursuant to clauses (1) through (8) of paragraph (a) of
Section 4.03 hereof) does not exceed 15 percent of the Company’s Consolidated Net Tangible Assets. 
 Section 4.02
Offer to Purchase Upon Change of Control Triggering Event. 
 (a) Upon the occurrence of a Change of Control Triggering Event (the
date of such occurrence, the “Change of Control Date”), unless the Company has exercised its right to redeem Notes pursuant to Section 3.03, each Holder shall have the right to require the Company to purchase such
Holder’s Notes in whole or in part at a purchase price (the “Change of Control Purchase Price”) equal to 101% of the principal amount of such Notes, plus accrued and unpaid interest, if any, to the date of purchase (the
“Change of Control Payment Date”), pursuant to and in accordance with the offer described in this Section 4.02 (the “Change of Control Offer”). 

(b) Within 30 days following the Change of Control Date, or at the Company’s option, prior to any Change of Control but after public
announcement of the pending Change of Control, the Company shall send, by first class mail, a notice to each Holder, with a copy to the Trustee, which notice shall govern the terms of the Change of Control Offer. Such notice shall state: 

(i) that the Change of Control Offer is being made pursuant to this Section 4.02 and that all Notes validly tendered will
be accepted for payment; 
 (ii) the Change of Control Purchase Price and the Change of Control Payment Date, which shall be
a Business Day that is no earlier than 30 days nor later than 60 days from the date such notice is mailed, other than as may be required by law; 

(iii) that any Note not tendered will continue to accrue interest; 

(iv) that any Note accepted for payment pursuant to the Change of Control Offer shall cease to accrue interest after the Change
of Control Payment Date unless the Company shall default in the payment of the Change of Control Purchase Price of the Notes and the only remaining right of the Holder is to receive payment of the Change of Control Purchase Price upon surrender of
the Notes to the Paying Agent; 

  
 17 

 (v) that Holders electing to have a portion of a Note purchased pursuant to
a Change of Control Offer may only elect to have such Note purchased in integral multiples of $1,000; 
 (vi) that if a
Holder elects to have a Note purchased pursuant to the Change of Control Offer it will be required to surrender the Note, with the form entitled “Option of Holder to Elect Purchase” on the reverse of the Note completed, or
transfer by book-entry transfer, to the Paying Agent at the address specified in the notice prior to the close of business on the third Business Day prior to the Change of Control Payment Date; 

(vii) that a Holder will be entitled to withdraw its election if the Company receives, not later than the third Business Day
preceding the Change of Control Payment Date, a telegram, telex, facsimile transmission or letter setting forth the name of such Holder, the principal amount of Notes such Holder delivered for purchase, and a statement that such Holder is
withdrawing its election to have such Note purchased; and 
 (viii) that if Notes are purchased only in part a new Note of
the same type will be issued in a principal amount equal to the unpurchased portion of the Notes surrendered. 
 (c) On or before the Change
of Control Payment Date, the Company shall, to the extent lawful, accept for payment, all Notes or portions thereof validly tendered pursuant to the Change of Control Offer, and shall deliver to the Trustee an Officer’s Certificate stating that
such Notes or portions thereof were accepted for payment by the Company in accordance with the terms of this Section 4.02. The Company, the Depositary or the Paying Agent, as the case may be, shall promptly mail or deliver to each tendering
Holder an amount equal to the purchase price of the Notes tendered by such Holder and accepted by the Company for purchase, and the Company shall promptly issue a new Note, and the Trustee, upon receipt of an Authentication Order, shall authenticate
and mail or deliver such new Note to such Holder, in a principal amount equal to any unpurchased portion of the Note surrendered. Any Note not so accepted shall be promptly mailed or delivered by the Company to the Holder thereof. 

(d) The Company shall comply with the requirements of Rule 14e-1 under the Exchange Act and any other
securities laws and regulations thereunder to the extent such laws and regulations are applicable in connection with the repurchase of Notes pursuant to an offer hereunder. To the extent the provisions of any securities laws or regulations conflict
with the provisions under this Section 4.02, the Company shall comply with the applicable securities laws and regulations and shall not be deemed to have breached its obligations under this Section 4.02 by virtue thereof. 

(e) The Company shall not be required to make a Change of Control Offer if a third party makes such an offer in the manner, at the times and
otherwise in compliance with the requirements for such an offer made by the Company and such third party purchases all Notes properly tendered and not withdrawn under its offer. 

  
 18 

 Section 4.03 Sale and Lease-Back Transactions. 

(a) The Company will not, and will not permit any of its subsidiaries to, enter into any Sale and Lease-Back Transaction with respect to any
Principal Property. The foregoing restriction, however, will not apply to, and therefore there will be excluded from any computation under subsection (b) below and under subsection (b) of Section 4.01, any Sale and Lease-Back
Transaction (and any Attributable Debt relating thereto) if: 
 (1) the Company or a subsidiary is permitted to create Funded
Debt secured by a Mortgage pursuant to any of clauses (1) through (8) inclusive under the second sentence of subsection (a) of Section 4.01 on the Principal Property involved in such Sale and Lease-Back Transaction, in an amount at
least equal to the Attributable Debt with respect to such Sale and Lease-Back Transaction, without equally and ratably securing the Notes; 

(2) the proceeds of such Sale and Lease-Back Transaction are at least equal to the fair market value of the affected Principal
Property (as determined in good faith by the Company’s Chief Executive Officer, President, Chief Financial Officer, Treasurer or Controller) and the Company or a subsidiary applies an amount equal to the net proceeds of such Sale and Lease-Back
Transaction within 360 days thereof to the prepayment or retirement of debt for borrowed money of the Company or a subsidiary (other than debt that is subordinated to the Notes or debt owed to the Company or a subsidiary); 

(3) the Company or a subsidiary apply an amount equal to the net proceeds of such Sale and Lease-Back Transaction within 360
days thereof to the purchase, construction, development, expansion or improvement of other property; 
 (4) such Sale and
Lease-Back Transaction involves a lease for a term, including renewals, of not more than three years; 
 (5) such Sale and
Lease-Back Transaction is between the Company and a subsidiary, or between subsidiaries; 
 (6) such Sale and Lease-Back
Transaction is executed at the time of, or within 12 months after the latest of the acquisition, the completion of construction or improvement, or the commencement of substantial commercial operation, of the Principal Property covered thereby; 

(7) the lease in such Sale and Lease-Back Transaction secures or relates to industrial revenue or pollution control bonds if
the Company is permitted to incur a Mortgage in connection with such industrial revenue or pollution control bonds pursuant to clause (6) of the second sentence of subsection (a) of Section 4.01; or 

(8) the lease payment in such Sale and Lease-Back Transaction is created in connection with a project financed with, and such
obligation constitutes, a Nonrecourse Obligation. 

  
 19 

 (b) Notwithstanding the restrictions in the first sentence of subsection (a), the Company or
any subsidiary may enter into any Sale and Lease-Back Transaction with respect to any Principal Property which would otherwise be subject to such restrictions, provided that after giving effect thereto, the aggregate amount of all Attributable Debt
with respect to all such Sale and Lease-Back Transactions (not including any Attributable Debt permitted to be incurred pursuant to clauses (1) through (8) of subsection (a) above) plus the aggregate amount of all secured Funded Debt
incurred pursuant to subsection (a) of Section 4.01 (excluding Funded Debt secured by Mortgages permitted by clauses (1) through (8) of the second sentence of subsection (a) thereunder) does not exceed 15 percent of the
Consolidated Net Tangible Assets. 
 ARTICLE 5. 

SUCCESSORS 
 Section 5.01
Merger, Consolidation or Sale of Assets. 
 The Company shall not, directly or indirectly, merge or consolidate with any other Person
or Persons (whether or not affiliated with the Company) or sell, convey, transfer, lease or otherwise dispose of all or substantially all of its property or assets to any other Person or Persons (whether or not affiliated with the Company), unless:

 (i) either: (a) the transaction is a merger or consolidation and the Company is the surviving entity; or (b) the successor
Person (or the Person which acquires by sale, conveyance, transfer or lease all or substantially all of the Company’s property or assets) is a corporation organized under the laws of the United States, any state thereof or the District of
Columbia and expressly assumes, by a supplemental indenture, executed and delivered to the Trustee, in form reasonably satisfactory to the Trustee, all of the Company’s obligations under the Notes and the Indenture; 

(ii) immediately after giving effect to the transaction and treating the Company’s obligations in connection with or as a result of such
transaction as having been incurred as of the time of such transaction, no Event of Default (and no event or condition which, after notice or lapse of time or both, would become an Event of Default) shall have occurred and be continuing under the
Indenture; and 
 (iii) an Officer’s Certificate and an Opinion of Counsel is delivered to the Trustee to the effect that both of the
conditions set forth in clauses (i) and (ii) above have been satisfied. 
 In the event of any of the above transactions, if there is a
successor Person as described in clause (i)(b) immediately above, then the successor will expressly assume all of the Company’s obligations under the Indenture and automatically be substituted for the Company in the Indenture and as issuer of
the Notes. Further, if the transaction is in the form of a sale or conveyance, after any such transfer (except in the case of a lease), the Company will be discharged from all obligations and covenants under the Indenture and all Notes issued
thereunder. 

  
 20 

 ARTICLE 6. 

DEFAULTS AND REMEDIES 

Section 6.01 Events of Default. 

The Notes shall not have the benefit of the Events of Default set forth in the Base Indenture. Instead, each of the following is an
“Event of Default” with respect to each series of the Notes: 
 (a) the failure to pay interest on any Notes of such
series when the same becomes due and payable and the default continues for a period of 90 days; 
 (b) failure in the payment when due of
principal of or premium, if any, on the Notes of such series; 
 (c) default in the performance or breach of any covenant or warranty of the
Company relating to the Notes of such series, which default continues uncured for a period of 90 days after receipt by the Company of written notice given by the Trustee or Holders of such Notes after the Company and the Trustee receive written
notice from the Holders of not less than a majority in aggregate principal amount of the Notes of such series outstanding; or 
 (d) the
Company or any Material Subsidiary: 
 (i) commences a voluntary case in bankruptcy, 

(ii) consents to the entry of an order for relief against it in an involuntary bankruptcy case, 

(iii) consents to the appointment of a custodian of it or for all or substantially all of its property, 

(iv) makes a general assignment for the benefit of its creditors, or 

(v) generally is unable to pay its debts as they become due; or 

(e) a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that: 

(i) is for relief against the Company or any Material Subsidiary; 

(ii) appoints a custodian of the Company or any Material Subsidiary for all or substantially all of the property of the Company
or of such Material Subsidiary, as applicable; or 
 (iii) orders the liquidation of the Company or any Material Subsidiary;

 and the order or decree remains unstayed and in effect for 90 consecutive days. 

  
 21 

 ARTICLE 7. 

MISCELLANEOUS 
 Section 7.01
Trust Indenture Act Controls. 
 If any provision of this Fourth Supplemental Indenture limits, qualifies or conflicts with the duties
imposed by TIA Section 318(c), the imposed duties will control. 
 Section 7.02 Governing Law. 

THE INTERNAL LAWS OF THE STATE OF NEW YORK WILL GOVERN AND BE USED TO CONSTRUE THIS FOURTH SUPPLEMENTAL INDENTURE AND THE NOTES WITHOUT GIVING
EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY. 

Section 7.03 Successors. 

All agreements of the Company in this Fourth Supplemental Indenture and the Notes will bind its successors. All agreements of the Trustee in
this Fourth Supplemental Indenture will bind its successors. 
 Section 7.04 Severability. 

In case any provision in this Fourth Supplemental Indenture or in the Notes will be invalid, illegal or unenforceable, the validity, legality
and enforceability of the remaining provisions will not in any way be affected or impaired thereby. 
 Section 7.05 Counterpart
Originals. 
 The parties may sign any number of copies of this Fourth Supplemental Indenture. Each signed copy will be an original, but
all of them together represent the same agreement. 
 Section 7.06 Table of Contents, Headings, Etc. 

The Table of Contents and Headings of the Articles and Sections of this Fourth Supplemental Indenture have been inserted for convenience of
reference only, are not to be considered a part of this Fourth Supplemental Indenture and will in no way modify or restrict any of the terms or provisions hereof. 

[Signatures on following page] 

  
 22 

 Dated: August 10, 2018 

 

			
	STARBUCKS CORPORATION
		
	By:	 	/s/ Petr Filipovic
	Name:	 	Petr Filipovic
	Title:	 	vice president, treasurer

 Signature Page to Supplemental Indenture 

 Dated: August 10, 2018 

 

			
	U.S. BANK NATIONAL ASSOCIATION, as Trustee
		
	By:	 	/s/ Thomas Zrust
	Name:	 	Thomas Zrust
	Title:	 	Vice President

 Signature Page to Supplemental Indenture 

 EXHIBIT A 

(Face of Note) 
 [Insert the Global
Note Legend, if applicable, pursuant to the provisions of the Fourth Supplemental Indenture] 
 CUSIP: 855244AQ2 

3.800% Senior Notes due 2025 
  

							
	No.                 	 		  	$	                             	 

 STARBUCKS CORPORATION 

promises to pay to CEDE & CO. or registered assigns, the principal sum of
                 Dollars on August 15, 2025 
 Interest Payment
Dates: February 15 and August 15 
 Record Dates: February 1 and August 1 

Dated: August 10, 2018 

  
 A-1 

 
			
	STARBUCKS CORPORATION

 
			
		
	By:	 	  

		 	Name:
		 	Title:

 Date: 

  
 A-2 

 This is one of the Global 

Notes referred to in the 
 within-mentioned Fourth Supplemental
Indenture: 
 Dated: 
 U.S. BANK NATIONAL ASSOCIATION, as
Trustee 
  

			
	By:	 	  

		 	Name:
		 	Title:

  
 A-3 

 (Reverse of Note) 

3.800% Senior Notes due 2025 

Capitalized terms used herein have the meanings assigned to them in the Indenture referred to below unless otherwise indicated. 

1. INTEREST. Starbucks Corporation, a Washington corporation (the “Company”), promises to pay interest
on the principal amount of this Note at 3.800% per annum from the date hereof until maturity. The Company will pay interest semiannually on February 15 and August 15 of each year, or if any such day is not a Business Day, on the next
succeeding Business Day (each an “Interest Payment Date”). Interest on the 2025 Notes will accrue from the most recent date to which interest has been paid or, if no interest has been paid, from the date of issuance;
provided that if there is no existing Default in the payment of interest, and if this Note is authenticated between a record date referred to on the face hereof and the next succeeding Interest Payment Date, interest will accrue from such
next succeeding Interest Payment Date; provided, further, that the first Interest Payment Date will be February 15, 2019. The Company will pay interest (including post-petition interest in any proceeding under any
Bankruptcy Law) on overdue principal at the rate equal to the then applicable interest rate on the 2025 Notes to the extent lawful; it will pay interest (including post-petition interest in any proceeding under any Bankruptcy Law) on overdue
installments of interest at the same rate to the extent lawful. Interest will be computed on the basis of a 360-day year of twelve 30-day months. 

2. METHOD OF PAYMENT. The Company will pay interest on the 2025 Notes (except defaulted interest) to the Persons who are registered
Holders of 2025 Notes at the close of business on the February 1 or August 1 preceding the Interest Payment Date, even if such 2025 Notes are canceled after such record date and on or before such Interest Payment Date, except as provided
in Section 2.13 of the Base Indenture with respect to defaulted interest. Principal, premium, if any, and interest on the 2025 Notes will be payable at the office or agency of the Paying Agent and Registrar within the Borough of
Manhattan in the City of New York or, at the option of the Company, payment of interest may be made by check mailed to the Holders of 2025 Notes at their respective addresses set forth in the register of Holders of the 2025 Notes; provided
that all payments of principal, premium and interest with respect to 2025 Notes the Holders of which have given wire transfer instructions to the Trustee will be required to be made by wire transfer of immediately available funds to the accounts
specified by the Holders thereof. Such payment will be in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts. 

3. PAYING AGENT AND REGISTRAR. Initially, U.S. Bank National Association, the Trustee under the Indenture, will act as Paying Agent and
Registrar. The Company may change any Paying Agent or Registrar without notice to any Holder. The Company or any of its subsidiaries may act in any such capacity. 

4. INDENTURE. This Note is one of a duly authenticated series of securities of the Company issued and to be issued in one or more
series under an indenture (the “Base Indenture”), dated as of September 15, 2016 between the Company and the Trustee, as amended by the Fourth Supplemental Indenture (the “Fourth Supplemental
Indenture” and, together with the Base Indenture, the “Indenture”), dated as of August 10, 2018, between the Company and 

  
 A-4 

 
the Trustee. The terms of the 2025 Notes include those stated in the Indenture and those made part of the Indenture by reference to the Trust Indenture Act of 1939, as amended (15 U.S. Code
Sections 77aaa-77bbbb). The 2025 Notes are subject to all such terms, and Holders are referred to the Indenture and such Act for a statement of such terms. To the extent any provision of this
Note conflicts with the express provisions of the Base Indenture, the provisions of the Note will govern and be controlling, and to the extent any provision of the Note conflicts with the Fourth Supplemental Indenture, the provisions of the Fourth
Supplemental Indenture will govern and be controlling, and to the extent any provision of the Base Indenture conflicts with the express provisions of the Fourth Supplemental Indenture, the provisions of the Fourth Supplemental Indenture will govern
and be controlling. The Company will be entitled to issue Additional Notes pursuant to Section 2.03 of the Fourth Supplemental Indenture. 

5. OPTIONAL REDEMPTION. 

At any time prior to June 15, 2025 (two months prior to their August 15, 2025 maturity date) (the “Par Call
Date”), the 2025 Notes will be redeemable, in whole at any time or in part from time to time, at the Company’s option, at a redemption price equal to the greater of: 

(i) 100% of the aggregate principal amount of the 2025 Notes to be redeemed; or 

(ii) the sum of the present values of the remaining scheduled payments of principal and interest on the 2025 Notes being
redeemed that would be due if the 2025 Notes matured on the Par Call Date (not including any portion of any payments of interest accrued to the redemption date) discounted to the redemption date on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months), at the Treasury Rate plus 15 basis points, 

plus, in each case, accrued and unpaid interest on the 2025 Notes being redeemed to the redemption date. 

Calculation of the foregoing shall be made by the Company or on the Company’s behalf by such Person as the Company shall designate;
provided, however, that such calculation shall not be a duty or obligation of the Trustee. 
 At any time on and after
the Par Call Date, some or all of the 2025 Notes will be redeemable, at the Company’s option, at a redemption price equal to 100% of the principal amount of the 2025 Notes to be redeemed plus accrued and unpaid interest on the principal amount
being redeemed to the redemption date. 
 On and after the redemption date, interest will cease to accrue on the 2025 Notes or portions
thereof called for redemption as long as the Company has deposited with the Paying Agent funds in satisfaction of the applicable redemption price. 

6. MANDATORY REDEMPTION. Except as set forth in paragraph 7, the Company shall not be required to make mandatory redemption payments
with respect to the 2025 Notes. 
 7. REPURCHASE AT OPTION OF HOLDER. 

  
 A-5 

 Upon the occurrence of a Change of Control Triggering Event, the Company will be required to
offer to purchase all of the outstanding 2025 Notes at a purchase price equal to 101% of the principal amount thereof, plus accrued and unpaid interest, if any, to the date of purchase. 

8. NOTICE OF REDEMPTION. Notice of redemption will be mailed by first-class mail at least 10 but not more than 60 days before the
redemption date to each Holder of 2025 Notes to be redeemed at its registered address. No 2025 Notes of a principal amount of $2,000 or less shall be redeemed in part. 

9. DENOMINATIONS, TRANSFER, EXCHANGE. The 2025 Notes are in registered form without coupons in denominations of $2,000 and integral
multiples of $1,000. The 2025 Notes may be transferred or exchanged as provided in the Fourth Supplemental Indenture. The Registrar and the Trustee may require a Holder, among other things, to furnish appropriate endorsements and
transfer documents and the Company may require a Holder to pay any taxes and fees required by law or permitted by the Fourth Supplemental Indenture. The Company need not exchange or transfer any Note or portion of a Note selected for
redemption, except for the unredeemed portion of any Note being redeemed in part. Also, the Company need not exchange or register the transfer of any 2025 Notes for a period of 15 days before a selection of 2025 Notes to be redeemed or during
the period between a record date and the corresponding Interest Payment Date. 
 10. PERSONS DEEMED OWNERS. The registered Holder of
a Note may be treated as its owner for all purposes. 
 11. AMENDMENT, SUPPLEMENT AND WAIVER. The Base Indenture may be amended as
provided therein. Subject to certain exceptions, the Fourth Supplemental Indenture or the 2025 Notes may be amended or supplemented with the consent of the Holders of at least a majority in principal amount of the 2025 Notes then outstanding,
including, without limitation, consents obtained in connection with a purchase of, or tender offer or exchange offer for, 2025 Notes, voting as a single class, and compliance with any provision of the Indenture or the 2025 Notes may be waived with
the consent of the Holders of a majority in principal amount of the then outstanding 2025 Notes, including, without limitation, consents obtained in connection with a purchase of, or tender offer or exchange offer for, 2025 Notes, voting as a single
class. Without the consent of any Holder of a Note, the Fourth Supplemental Indenture or the 2025 Notes may be amended or supplemented (i) to cure any ambiguity, defect or inconsistency; (ii) to provide for uncertificated 2025 Notes in
addition to or in place of certificated 2025 Notes; (iii) to provide for the assumption of the Company’s obligations to Holders of the 2025 Notes in case of a merger or consolidation or sale of all or substantially all of the
Company’s assets; (iv) to make any change that would provide any additional rights or benefits to the Holders of the 2025 Notes or that does not adversely affect the legal rights under the Fourth Supplemental Indenture of any such Holder;
(v) to comply with the requirements of the SEC in order to effect or maintain the qualification of the Indenture under the Trust Indenture Act; (vi) to provide for the issuance of Additional Notes in accordance with the Fourth Supplemental
Indenture; or (vii) to evidence and provide for the acceptance of appointment by a successor trustee with respect to the 2025 Notes. 

12. DEFAULTS AND REMEDIES. An “EVENT OF DEFAULT” occurs if: (i) default for a period of 90 days in the payment when due
of interest on the 2025 Notes; (ii) 

  
 A-6 

 
default in the payment when due of principal of or premium, if any, on the 2025 Notes; (iii) the Company fails for 90 days after receipt of notice to the Company to comply with any covenant
or warranty of the Company in the Indenture; or (iv) certain events of bankruptcy or insolvency occur with respect to the Company or any Material Subsidiary. 

If any Event of Default occurs and is continuing, the Trustee or the Holders of at least 25% in principal amount of the then outstanding 2025
Notes may declare all the 2025 Notes to be due and payable. Notwithstanding the foregoing, in the case of an Event of Default arising from certain events of bankruptcy or insolvency with respect to the Company or any Material Subsidiary, all
outstanding 2025 Notes will become due and payable without further action or notice. Holders may not enforce the Indenture or the 2025 Notes except as provided in the Indenture. Subject to certain limitations, Holders of a majority in principal
amount of the then outstanding 2025 Notes may direct the Trustee in its exercise of any trust or power. The Trustee may withhold from Holders of the 2025 Notes notice of any continuing Default or Event of Default if it determines that withholding
notice is in their interest, except a Default or Event of Default relating to the payment of principal, premium or interest. The Holders of a majority in aggregate principal amount of the 2025 Notes then outstanding by notice to the Trustee may on
behalf of the Holders of all of the 2025 Notes waive any existing Default or Event of Default and its consequences under the Indenture except a continuing Default or Event of Default in the payment of interest on, or the principal of, the 2025
Notes. The Company is required to deliver to the Trustee annually a statement regarding compliance with the Indenture, and the Company is required no later than five days after becoming aware of any Default or Event of Default to deliver to the
Trustee a statement specifying such Default or Event of Default. 
 13. TRUSTEE DEALINGS WITH COMPANY. The Trustee, in its individual
or any other capacity, may make loans to, accept deposits from, and perform services for the Company or its Affiliates, and may otherwise deal with the Company or its Affiliates, as if it were not the Trustee. 

14. NO RECOURSE AGAINST OTHERS. A director, officer, employee, incorporator or stockholder, of the Company, as such, will not have any
liability for any obligations of the Company under the 2025 Notes or the Indenture or for any claim based on, in respect of, or by reason of, such obligations or their creation. Each Holder of 2025 Notes by accepting a Note waives and
releases all such liability. The waiver and release are part of the consideration for the issuance of the 2025 Notes. 
 15.
AUTHENTICATION. This Note will not be valid until authenticated by the manual signature of the Trustee or an authenticating agent. 

16. ABBREVIATIONS. Customary abbreviations may be used in the name of a Holder or an assignee, such as: TEN COM (= tenants in common),
TEN ENT (= tenants by the entireties), JT TEN (= joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian), and U/G/M/A (= Uniform Gifts to Minors Act). 

17. CUSIP NUMBERS. Pursuant to a recommendation promulgated by the Committee on Uniform Security Identification Procedures, the Company
has caused CUSIP numbers to be printed on the 2025 Notes and the Trustee may use CUSIP numbers in notices of 

  
 A-7 

 
redemption as a convenience to Holders. No representation is made as to the accuracy of such numbers either as printed on the 2025 Notes or as contained in any notice of redemption and
reliance may be placed only on the other identification numbers placed thereon. The Company will furnish to any Holder upon written request and without charge a copy of the Base Indenture and the Fourth Supplemental Indenture. Requests
may be made to: 
 Starbucks Corporation 

2401 Utah Avenue South 
 Seattle,
Washington 98134 
 Facsimile No.: (206) 318-1045 

Attention: General Counsel 

  
 A-8 

 ASSIGNMENT FORM 

To assign this Note, fill in the form below: 

(I) or (we) assign and transfer this Note to:
                                         
                                         
                   

        (Insert assignee’s legal name) 

 
  

(Insert assignee’s soc. sec. or tax I.D. no.) 
  

 
  

 
  

 
  

 
 (Print or type assignee’s name,
address and zip code) 
 and irrevocably appoint
                                         
                                         
                                         
      
 to transfer this Note on the books of the Company: The agent may substitute another to act for him. 

Date:
                         

 

			
	Your Signature:                               
                                         

	                                (sign exactly 
as your name appears
	                                on the face 
of this senior note)
	
	Tax Identification No.:                              
                             
	
	Signature Guarantee:                                
                              

 Signatures must be guaranteed by an “eligible guarantor institution” meeting the requirements of the
Registrar, which requirements include membership or participation in the Security Transfer Agent Medallion Program (“STAMP”) or such other “signature guarantee program” as may be determined by the Registrar
in addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended. 

  
 A-9 

 Option of Holder to Elect Purchase 

If you want to elect to have this Note purchased by the Company pursuant to Section 4.02 of the Fourth Supplemental Indenture, check the
box below: 
 ☐     Section 4.02 

If you want to elect to have only part of the Note purchased by the Company pursuant to Section 4.02 of the Fourth Supplemental
Indenture, state the amount you elect to have purchased: $ 

Date:                   
                      
  

			
	Your
Signature:                                       
                                 
	                                (sign exactly as your name
appears
	                                on the face of this senior
note)
	
	Tax Identification
No.:                                        
                   
	
	Signature
Guarantee:                                       
                       

 Signatures must be guaranteed by an “eligible guarantor institution” meeting the requirements of the
Registrar, which requirements include membership or participation in the Security Transfer Agent Medallion Program (“STAMP”) or such other “signature guarantee program” as may be determined by the
Registrar in addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended. 

  
 A-10 

 EXHIBIT B 

(Face of Note) 
 [Insert the Global Note
Legend, if applicable, pursuant to the provisions of the Fourth Supplemental Indenture] 
 CUSIP: 855244AR0 

4.000% Senior Notes due 2028 
  

			
	No.                 	  	$                            

 STARBUCKS CORPORATION 

promises to pay to CEDE & CO. or registered assigns, the principal sum of
             Dollars on November 15, 2028 
 Interest Payment Dates: May 15 and
November 15 
 Record Dates: May 1 and November 1 

Dated: August 10, 2018 

  
 B-1 

 
			
	 STARBUCKS
CORPORATION

 
			
		
	By:	 	  

		 	Name:
		 	Title:

 Date: 

  
 B-2 

 This is one of the Global 

Notes referred to in the 
 within-mentioned Fourth Supplemental
Indenture: 
 Dated: 
 U.S. BANK NATIONAL ASSOCIATION, as
Trustee 
  

			
	 By:
	 	 
		 	Name:
		 	 Title:

  
 B-3 

 (Reverse of Note) 

4.000% Senior Notes due 2028 

Capitalized terms used herein have the meanings assigned to them in the Indenture referred to below unless otherwise indicated. 

1. INTEREST. Starbucks Corporation, a Washington corporation (the “Company”), promises to pay interest
on the principal amount of this Note at 4.000% per annum from the date hereof until maturity. The Company will pay interest semiannually on May 15 and November 15 of each year, or if any such day is not a Business Day, on the next
succeeding Business Day (each an “Interest Payment Date”). Interest on the 2028 Notes will accrue from the most recent date to which interest has been paid or, if no interest has been paid, from the date of issuance;
provided that if there is no existing Default in the payment of interest, and if this Note is authenticated between a record date referred to on the face hereof and the next succeeding Interest Payment Date, interest will accrue from such
next succeeding Interest Payment Date; provided, further, that the first Interest Payment Date will be November 15, 2018. The Company will pay interest (including post-petition interest in any proceeding under any
Bankruptcy Law) on overdue principal at the rate equal to the then applicable interest rate on the 2028 Notes to the extent lawful; it will pay interest (including post-petition interest in any proceeding under any Bankruptcy Law) on overdue
installments of interest at the same rate to the extent lawful. Interest will be computed on the basis of a 360-day year of twelve 30-day months. 

2. METHOD OF PAYMENT. The Company will pay interest on the 2028 Notes (except defaulted interest) to the Persons who are registered
Holders of the 2028 Notes at the close of business on the May 1 or November 1 preceding the Interest Payment Date, even if such 2028 Notes are canceled after such record date and on or before such Interest Payment Date, except as provided
in Section 2.13 of the Base Indenture with respect to defaulted interest. Principal, premium, if any, and interest on the 2028 Notes will be payable at the office or agency of the Paying Agent and Registrar within the Borough of
Manhattan in the City of New York or, at the option of the Company, payment of interest may be made by check mailed to the Holders of the 2028 Notes at their respective addresses set forth in the register of Holders of 2028 Notes; provided
that all payments of principal, premium and interest with respect to 2028 Notes the Holders of which have given wire transfer instructions to the Trustee will be required to be made by wire transfer of immediately available funds to the accounts
specified by the Holders thereof. Such payment will be in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts. 

3. PAYING AGENT AND REGISTRAR. Initially, U.S. Bank National Association, the Trustee under the Indenture, will act as Paying Agent and
Registrar. The Company may change any Paying Agent or Registrar without notice to any Holder. The Company or any of its subsidiaries may act in any such capacity. 

4. INDENTURE. This Note is one of a duly authenticated series of securities of the Company issued and to be issued in one or more
series under an indenture (the “Base Indenture”), dated as of September 15, 2016 between the Company and the Trustee, as amended by the Fourth Supplemental Indenture (the “Fourth Supplemental
Indenture” and, together with the Base Indenture, the “Indenture”), dated as of August 10, 2018, between the Company and 

  
 B-4 

 
the Trustee. The terms of the 2028 Notes include those stated in the Indenture and those made part of the Indenture by reference to the Trust Indenture Act of 1939, as amended (15 U.S. Code
Sections 77aaa-77bbbb). The 2028 Notes are subject to all such terms, and Holders are referred to the Indenture and such Act for a statement of such terms. To the extent any provision of this
Note conflicts with the express provisions of the Base Indenture, the provisions of the Note will govern and be controlling, and to the extent any provision of the Note conflicts with the Fourth Supplemental Indenture, the provisions of the Fourth
Supplemental Indenture will govern and be controlling, and to the extent any provision of the Base Indenture conflicts with the express provisions of the Fourth Supplemental Indenture, the provisions of the Fourth Supplemental Indenture will govern
and be controlling. The Company will be entitled to issue Additional Notes pursuant to Section 2.03 of the Fourth Supplemental Indenture. 

5. OPTIONAL REDEMPTION. 

At any time prior to August 15, 2028 (three months prior to their November 15, 2028 maturity date) (the “Par Call
Date”), the 2028 Notes will be redeemable, in whole at any time or in part from time to time, at the Company’s option, at a redemption price equal to the greater of: 

(i) 100% of the aggregate principal amount of the 2028 Notes to be redeemed; or 

(ii) the sum of the present values of the remaining scheduled payments of principal and interest on the 2028 Notes being
redeemed that would be due if the 2028 Notes matured on the Par Call Date (not including any portion of any payments of interest accrued to the redemption date) discounted to the redemption date on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months), at the Treasury Rate plus 20 basis points, 

plus, in each case, accrued and unpaid interest on the 2028 Notes being redeemed to the redemption date. 

Calculation of the foregoing shall be made by the Company or on the Company’s behalf by such Person as the Company shall designate;
provided, however, that such calculation shall not be a duty or obligation of the Trustee. 
 At any time on and after
the Par Call Date, some or all of the 2028 Notes will be redeemable, at the Company’s option, at a redemption price equal to 100% of the principal amount of the 2028 Notes to be redeemed plus accrued and unpaid interest on the principal amount
being redeemed to the redemption date. 
 On and after the redemption date, interest will cease to accrue on the 2028 Notes or portions
thereof called for redemption as long as the Company has deposited with the Paying Agent funds in satisfaction of the applicable redemption price. 

6. MANDATORY REDEMPTION. Except as set forth in paragraph 7, the Company shall not be required to make mandatory redemption payments
with respect to the 2028 Notes. 
 7. REPURCHASE AT OPTION OF HOLDER. 

  
 B-5 

 Upon the occurrence of a Change of Control Triggering Event, the Company will be required to
offer to purchase all of the outstanding 2028 Notes at a purchase price equal to 101% of the principal amount thereof, plus accrued and unpaid interest, if any, to the date of purchase. 

8. NOTICE OF REDEMPTION. Notice of redemption will be mailed by first-class mail at least 10 but not more than 60 days before the
redemption date to each Holder of 2028 Notes to be redeemed at its registered address. No 2028 Notes of a principal amount of $2,000 or less shall be redeemed in part. 

9. DENOMINATIONS, TRANSFER, EXCHANGE. The 2028 Notes are in registered form without coupons in denominations of $2,000 and integral
multiples of $1,000. The 2028 Notes may be transferred or exchanged as provided in the Fourth Supplemental Indenture. The Registrar and the Trustee may require a Holder, among other things, to furnish appropriate endorsements and
transfer documents and the Company may require a Holder to pay any taxes and fees required by law or permitted by the Fourth Supplemental Indenture. The Company need not exchange or transfer any Note or portion of a Note selected for
redemption, except for the unredeemed portion of any Note being redeemed in part. Also, the Company need not exchange or register the transfer of any 2028 Notes for a period of 15 days before a selection of 2028 Notes to be redeemed or during
the period between a record date and the corresponding Interest Payment Date. 
 10. PERSONS DEEMED OWNERS. The registered Holder of
a Note may be treated as its owner for all purposes. 
 11. AMENDMENT, SUPPLEMENT AND WAIVER. The Base Indenture may be amended as
provided therein. Subject to certain exceptions, the Fourth Supplemental Indenture or the 2028 Notes may be amended or supplemented with the consent of the Holders of at least a majority in principal amount of the 2028 Notes then outstanding,
including, without limitation, consents obtained in connection with a purchase of, or tender offer or exchange offer for, 2028 Notes, voting as a single class, and compliance with any provision of the Indenture or the 2028 Notes may be waived with
the consent of the Holders of a majority in principal amount of the then outstanding 2028 Notes, including, without limitation, consents obtained in connection with a purchase of, or tender offer or exchange offer for, 2028 Notes, voting as a single
class. Without the consent of any Holder of a Note, the Fourth Supplemental Indenture or the 2028 Notes may be amended or supplemented (i) to cure any ambiguity, defect or inconsistency; (ii) to provide for uncertificated 2028 Notes in
addition to or in place of certificated 2028 Notes; (iii) to provide for the assumption of the Company’s obligations to Holders of 2028 Notes in case of a merger or consolidation or sale of all or substantially all of the Company’s
assets; (iv) to make any change that would provide any additional rights or benefits to the Holders of 2028 Notes or that does not adversely affect the legal rights under the Fourth Supplemental Indenture of any such Holder; (v) to comply
with the requirements of the SEC in order to effect or maintain the qualification of the Indenture under the Trust Indenture Act; (vi) to provide for the issuance of Additional Notes in accordance with the Fourth Supplemental Indenture; or
(vii) to evidence and provide for the acceptance of appointment by a successor trustee with respect to the 2028 Notes. 
 12.
DEFAULTS AND REMEDIES. An “EVENT OF DEFAULT” occurs if: (i) default for a period of 90 days in the payment when due of interest on the 2028 Notes; (ii) 

  
 B-6 

 
default in the payment when due of principal of or premium, if any, on the 2028 Notes; (iii) the Company fails for 90 days after receipt of notice to the Company to comply with any covenant
or warranty of the Company in the Indenture; or (iv) certain events of bankruptcy or insolvency occur with respect to the Company or any Material Subsidiary. 

If any Event of Default occurs and is continuing, the Trustee or the Holders of at least 25% in principal amount of the then outstanding 2028
Notes may declare all the 2028 Notes to be due and payable. Notwithstanding the foregoing, in the case of an Event of Default arising from certain events of bankruptcy or insolvency with respect to the Company or any Material Subsidiary, all
outstanding 2028 Notes will become due and payable without further action or notice. Holders may not enforce the Indenture or the 2028 Notes except as provided in the Indenture. Subject to certain limitations, Holders of a majority in principal
amount of the then outstanding 2028 Notes may direct the Trustee in its exercise of any trust or power. The Trustee may withhold from Holders of 2028 Notes notice of any continuing Default or Event of Default if it determines that withholding notice
is in their interest, except a Default or Event of Default relating to the payment of principal, premium or interest. The Holders of a majority in aggregate principal amount of the 2028 Notes then outstanding by notice to the Trustee may on behalf
of the Holders of all of the 2028 Notes waive any existing Default or Event of Default and its consequences under the Indenture except a continuing Default or Event of Default in the payment of interest on, or the principal of, the 2028 Notes. The
Company is required to deliver to the Trustee annually a statement regarding compliance with the Indenture, and the Company is required no later than five days after becoming aware of any Default or Event of Default to deliver to the Trustee a
statement specifying such Default or Event of Default. 
 13. TRUSTEE DEALINGS WITH COMPANY. The Trustee, in its individual or any
other capacity, may make loans to, accept deposits from, and perform services for the Company or its Affiliates, and may otherwise deal with the Company or its Affiliates, as if it were not the Trustee. 

14. NO RECOURSE AGAINST OTHERS. A director, officer, employee, incorporator or stockholder, of the Company, as such, will not have any
liability for any obligations of the Company under the 2028 Notes or the Indenture or for any claim based on, in respect of, or by reason of, such obligations or their creation. Each Holder of 2028 Notes by accepting a Note waives and
releases all such liability. The waiver and release are part of the consideration for the issuance of the 2028 Notes. 
 15.
AUTHENTICATION. This Note will not be valid until authenticated by the manual signature of the Trustee or an authenticating agent. 

16. ABBREVIATIONS. Customary abbreviations may be used in the name of a Holder or an assignee, such as: TEN COM (= tenants in common),
TEN ENT (= tenants by the entireties), JT TEN (= joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian), and U/G/M/A (= Uniform Gifts to Minors Act). 

17. CUSIP NUMBERS. Pursuant to a recommendation promulgated by the Committee on Uniform Security Identification Procedures, the Company
has caused CUSIP numbers to be printed on the 2028 Notes and the Trustee may use CUSIP numbers in notices of 

  
 B-7 

 
redemption as a convenience to Holders. No representation is made as to the accuracy of such numbers either as printed on the 2028 Notes or as contained in any notice of redemption and
reliance may be placed only on the other identification numbers placed thereon. The Company will furnish to any Holder upon written request and without charge a copy of the Base Indenture and the Fourth Supplemental Indenture. Requests
may be made to: 
 Starbucks Corporation 

2401 Utah Avenue South 
 Seattle,
Washington 98134 
 Facsimile No.: (206) 318-1045 

Attention: General Counsel 

  
 B-8 

 ASSIGNMENT FORM 

To assign this Note, fill in the form below: 

(I) or (we) assign and transfer this Note to:
                                         
                                         
                   

        (Insert assignee’s legal name) 

 
  

(Insert assignee’s soc. sec. or tax I.D. no.) 
  

 
  

 
  

 
  

 
 (Print or type assignee’s name,
address and zip code) 
 and irrevocably appoint
                                         
                                         
                                         
      
 to transfer this Note on the books of the Company: The agent may substitute another to act for him. 

Date:
                         

 

			
	Your Signature:                               
                                         

	                                (sign exactly 
as your name appears
	                                on the face 
of this senior note)
	
	Tax Identification No.:                              
                             
	
	Signature Guarantee:                                
                              

 Signatures must be guaranteed by an “eligible guarantor institution” meeting the requirements of the
Registrar, which requirements include membership or participation in the Security Transfer Agent Medallion Program (“STAMP”) or such other “signature guarantee program” as may be determined by the Registrar
in addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended. 

  
 B-9 

 Option of Holder to Elect Purchase 

If you want to elect to have this Note purchased by the Company pursuant to Section 4.02 of the Fourth Supplemental Indenture, check the
box below: 
 ☐    Section 4.02 

If you want to elect to have only part of the Note purchased by the Company pursuant to Section 4.02 of the Fourth Supplemental
Indenture, state the amount you elect to have purchased: $ 
 Date:
                                        
 
  

			
	Your Signature:                               
                                         

	                                (sign exactly 
as your name appears
	                                on the face 
of this senior note)
	
	Tax Identification No.:                              
                             
	
	Signature Guarantee:                                
                              

 Signatures must be guaranteed by an “eligible guarantor institution” meeting the requirements of the
Registrar, which requirements include membership or participation in the Security Transfer Agent Medallion Program (“STAMP”) or such other “signature guarantee program” as may be determined by the
Registrar in addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended. 

  
 B-10 

 EXHIBIT C 

(Face of Note) 
 [Insert the Global
Note Legend, if applicable, pursuant to the provisions of the Fourth Supplemental Indenture] 
 CUSIP: 855244AS8 

4.500% Senior Notes due 2048 
  

					
	
No.                
	  	$	                             	 

 STARBUCKS CORPORATION 

promises to pay to CEDE & CO. or registered assigns, the principal sum of
                     Dollars on November 15, 2048 

Interest Payment Dates: May 15 and November 15 

Record Dates: May 1 and November 1 
 Dated:
August 10, 2018 

  
 C-1 

 
			
	STARBUCKS CORPORATION

 
			
		
	By:	 	  

		 	Name:
		 	Title:

 Date: 

  
 C-2 

 This is one of the Global 

Notes referred to in the 
 within-mentioned Fourth Supplemental
Indenture: 
 Dated: 
 U.S. BANK NATIONAL ASSOCIATION, as
Trustee 

			
		
	By:	 	  

		 	Name:
		 	Title:

  
 C-3 

 (Reverse of Note) 

4.500% Senior Notes due 2048 

Capitalized terms used herein have the meanings assigned to them in the Indenture referred to below unless otherwise indicated. 

1. INTEREST. Starbucks Corporation, a Washington corporation (the “Company”), promises to pay interest
on the principal amount of this Note at 4.500% per annum from the date hereof until maturity. The Company will pay interest semiannually on May 15 and November 15 of each year, or if any such day is not a Business Day, on the next
succeeding Business Day (each an “Interest Payment Date”). Interest on the 2048 Notes will accrue from the most recent date to which interest has been paid or, if no interest has been paid, from the date of issuance;
provided that if there is no existing Default in the payment of interest, and if this Note is authenticated between a record date referred to on the face hereof and the next succeeding Interest Payment Date, interest will accrue from such
next succeeding Interest Payment Date; provided, further, that the first Interest Payment Date will be November 15, 2018. The Company will pay interest (including post-petition interest in any proceeding under any
Bankruptcy Law) on overdue principal at the rate equal to the then applicable interest rate on the 2048 Notes to the extent lawful; it will pay interest (including post-petition interest in any proceeding under any Bankruptcy Law) on overdue
installments of interest at the same rate to the extent lawful. Interest will be computed on the basis of a 360-day year of twelve 30-day months. 

2. METHOD OF PAYMENT. The Company will pay interest on the 2048 Notes (except defaulted interest) to the Persons who are registered
Holders of the 2048 Notes at the close of business on the May 1 or November 1 preceding the Interest Payment Date, even if such 2048 Notes are canceled after such record date and on or before such Interest Payment Date, except as provided
in Section 2.13 of the Base Indenture with respect to defaulted interest. Principal, premium, if any, and interest on the 2048 Notes will be payable at the office or agency of the Paying Agent and Registrar within the Borough of
Manhattan in the City of New York or, at the option of the Company, payment of interest may be made by check mailed to the Holders of the 2048 Notes at their respective addresses set forth in the register of Holders of 2048 Notes; provided
that all payments of principal, premium and interest with respect to 2048 Notes the Holders of which have given wire transfer instructions to the Trustee will be required to be made by wire transfer of immediately available funds to the accounts
specified by the Holders thereof. Such payment will be in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts. 

3. PAYING AGENT AND REGISTRAR. Initially, U.S. Bank National Association, the Trustee under the Indenture, will act as Paying Agent and
Registrar. The Company may change any Paying Agent or Registrar without notice to any Holder. The Company or any of its subsidiaries may act in any such capacity. 

4. INDENTURE. This Note is one of a duly authenticated series of securities of the Company issued and to be issued in one or more
series under an indenture (the “Base Indenture”), dated as of September 15, 2016 between the Company and the Trustee, as amended by the Fourth Supplemental Indenture (the “Fourth Supplemental
Indenture” and, together with the Base Indenture, the “Indenture”), dated as of August 10, 2018, between the Company and 

  
 C-4 

 
the Trustee. The terms of the 2048 Notes include those stated in the Indenture and those made part of the Indenture by reference to the Trust Indenture Act of 1939, as amended (15 U.S. Code
Sections 77aaa-77bbbb). The 2048 Notes are subject to all such terms, and Holders are referred to the Indenture and such Act for a statement of such terms. To the extent any provision of this
Note conflicts with the express provisions of the Base Indenture, the provisions of the Note will govern and be controlling, and to the extent any provision of the Note conflicts with the Fourth Supplemental Indenture, the provisions of the Fourth
Supplemental Indenture will govern and be controlling, and to the extent any provision of the Base Indenture conflicts with the express provisions of the Fourth Supplemental Indenture, the provisions of the Fourth Supplemental Indenture will govern
and be controlling. The Company will be entitled to issue Additional Notes pursuant to Section 2.03 of the Fourth Supplemental Indenture. 

5. OPTIONAL REDEMPTION. 

At any time prior to May 15, 2048 (six months prior to their November 15, 2048 maturity date) (the “Par Call
Date”), the 2048 Notes will be redeemable, in whole at any time or in part from time to time, at the Company’s option, at a redemption price equal to the greater of: 

(i) 100% of the aggregate principal amount of the 2048 Notes to be redeemed; or 

(ii) the sum of the present values of the remaining scheduled payments of principal and interest on the 2048 Notes being
redeemed that would be due if the 2048 Notes matured on the Par Call Date (not including any portion of any payments of interest accrued to the redemption date) discounted to the redemption date on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months), at the Treasury Rate plus 25 basis points, 

plus, in each case, accrued and unpaid interest on the 2048 Notes being redeemed to the redemption date. 

Calculation of the foregoing shall be made by the Company or on the Company’s behalf by such Person as the Company shall designate;
provided, however, that such calculation shall not be a duty or obligation of the Trustee. 
 At any time on and after
the Par Call Date, some or all of the 2048 Notes will be redeemable, at the Company’s option, at a redemption price equal to 100% of the principal amount of the 2048 Notes to be redeemed plus accrued and unpaid interest on the principal amount
being redeemed to the redemption date. 
 On and after the redemption date, interest will cease to accrue on the 2048 Notes or portions
thereof called for redemption as long as the Company has deposited with the Paying Agent funds in satisfaction of the applicable redemption price. 

6. MANDATORY REDEMPTION. Except as set forth in paragraph 7, the Company shall not be required to make mandatory redemption payments
with respect to the 2048 Notes. 
 7. REPURCHASE AT OPTION OF HOLDER. 

  
 C-5 

 Upon the occurrence of a Change of Control Triggering Event, the Company will be required to
offer to purchase all of the outstanding 2048 Notes at a purchase price equal to 101% of the principal amount thereof, plus accrued and unpaid interest, if any, to the date of purchase. 

8. NOTICE OF REDEMPTION. Notice of redemption will be mailed by first-class mail at least 10 but not more than 60 days before the
redemption date to each Holder of 2048 Notes to be redeemed at its registered address. No 2048 Notes of a principal amount of $2,000 or less shall be redeemed in part. 

9. DENOMINATIONS, TRANSFER, EXCHANGE. The 2048 Notes are in registered form without coupons in denominations of $2,000 and integral
multiples of $1,000. The 2048 Notes may be transferred or exchanged as provided in the Fourth Supplemental Indenture. The Registrar and the Trustee may require a Holder, among other things, to furnish appropriate endorsements and
transfer documents and the Company may require a Holder to pay any taxes and fees required by law or permitted by the Fourth Supplemental Indenture. The Company need not exchange or transfer any Note or portion of a Note selected for
redemption, except for the unredeemed portion of any Note being redeemed in part. Also, the Company need not exchange or register the transfer of any 2048 Notes for a period of 15 days before a selection of 2048 Notes to be redeemed or during
the period between a record date and the corresponding Interest Payment Date. 
 10. PERSONS DEEMED OWNERS. The registered Holder of
a Note may be treated as its owner for all purposes. 
 11. AMENDMENT, SUPPLEMENT AND WAIVER. The Base Indenture may be amended as
provided therein. Subject to certain exceptions, the Fourth Supplemental Indenture or the 2048 Notes may be amended or supplemented with the consent of the Holders of at least a majority in principal amount of the 2048 Notes then outstanding,
including, without limitation, consents obtained in connection with a purchase of, or tender offer or exchange offer for, 2048 Notes, voting as a single class, and compliance with any provision of the Indenture or the 2048 Notes may be waived with
the consent of the Holders of a majority in principal amount of the then outstanding 2048 Notes, including, without limitation, consents obtained in connection with a purchase of, or tender offer or exchange offer for, 2048 Notes, voting as a single
class. Without the consent of any Holder of a Note, the Fourth Supplemental Indenture or the 2048 Notes may be amended or supplemented (i) to cure any ambiguity, defect or inconsistency; (ii) to provide for uncertificated 2048 Notes in
addition to or in place of certificated 2048 Notes; (iii) to provide for the assumption of the Company’s obligations to Holders of 2048 Notes in case of a merger or consolidation or sale of all or substantially all of the Company’s
assets; (iv) to make any change that would provide any additional rights or benefits to the Holders of 2048 Notes or that does not adversely affect the legal rights under the Fourth Supplemental Indenture of any such Holder; (v) to comply
with the requirements of the SEC in order to effect or maintain the qualification of the Indenture under the Trust Indenture Act; (vi) to provide for the issuance of Additional Notes in accordance with the Fourth Supplemental Indenture; or
(vii) to evidence and provide for the acceptance of appointment by a successor trustee with respect to the 2048 Notes. 
 12.
DEFAULTS AND REMEDIES. An “EVENT OF DEFAULT” occurs if: (i) default for a period of 90 days in the payment when due of interest on the 2048 Notes; (ii) 

  
 C-6 

 
default in the payment when due of principal of or premium, if any, on the 2048 Notes; (iii) the Company fails for 90 days after receipt of notice to the Company to comply with any covenant
or warranty of the Company in the Indenture; or (iv) certain events of bankruptcy or insolvency occur with respect to the Company or any Material Subsidiary. 

If any Event of Default occurs and is continuing, the Trustee or the Holders of at least 25% in principal amount of the then outstanding 2048
Notes may declare all the 2048 Notes to be due and payable. Notwithstanding the foregoing, in the case of an Event of Default arising from certain events of bankruptcy or insolvency with respect to the Company or any Material Subsidiary, all
outstanding 2048 Notes will become due and payable without further action or notice. Holders may not enforce the Indenture or the 2048 Notes except as provided in the Indenture. Subject to certain limitations, Holders of a majority in principal
amount of the then outstanding 2048 Notes may direct the Trustee in its exercise of any trust or power. The Trustee may withhold from Holders of 2048 Notes notice of any continuing Default or Event of Default if it determines that withholding notice
is in their interest, except a Default or Event of Default relating to the payment of principal, premium or interest. The Holders of a majority in aggregate principal amount of the 2048 Notes then outstanding by notice to the Trustee may on behalf
of the Holders of all of the 2048 Notes waive any existing Default or Event of Default and its consequences under the Indenture except a continuing Default or Event of Default in the payment of interest on, or the principal of, the 2048 Notes. The
Company is required to deliver to the Trustee annually a statement regarding compliance with the Indenture, and the Company is required no later than five days after becoming aware of any Default or Event of Default to deliver to the Trustee a
statement specifying such Default or Event of Default. 
 13.    TRUSTEE DEALINGS WITH COMPANY. The Trustee, in
its individual or any other capacity, may make loans to, accept deposits from, and perform services for the Company or its Affiliates, and may otherwise deal with the Company or its Affiliates, as if it were not the Trustee. 

14.    NO RECOURSE AGAINST OTHERS. A director, officer, employee, incorporator or stockholder, of the Company, as
such, will not have any liability for any obligations of the Company under the 2048 Notes or the Indenture or for any claim based on, in respect of, or by reason of, such obligations or their creation. Each Holder of 2048 Notes by accepting a
Note waives and releases all such liability. The waiver and release are part of the consideration for the issuance of the 2048 Notes. 

15.    AUTHENTICATION. This Note will not be valid until authenticated by the manual signature of the Trustee or an
authenticating agent. 
 16.    ABBREVIATIONS. Customary abbreviations may be used in the name of a Holder or an
assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (= joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian), and U/G/M/A (= Uniform Gifts to Minors Act). 

17.    CUSIP NUMBERS. Pursuant to a recommendation promulgated by the Committee on Uniform Security Identification
Procedures, the Company has caused CUSIP numbers to be printed on the 2048 Notes and the Trustee may use CUSIP numbers in notices of 

  
 C-7 

 
redemption as a convenience to Holders. No representation is made as to the accuracy of such numbers either as printed on the 2048 Notes or as contained in any notice of redemption and
reliance may be placed only on the other identification numbers placed thereon. The Company will furnish to any Holder upon written request and without charge a copy of the Base Indenture and the Fourth Supplemental Indenture. Requests
may be made to: 
 Starbucks Corporation 

2401 Utah Avenue South 
 Seattle,
Washington 98134 
 Facsimile No.: (206) 318-1045 

Attention: General Counsel 

  
 C-8 

 ASSIGNMENT FORM 

To assign this Note, fill in the form below: 

(I) or (we) assign and transfer this Note to:           
                                         
                                         
                      

            (Insert assignee’s legal name) 

 
  

(Insert assignee’s soc. sec. or tax I.D. no.) 
  

 
  

 
  

 
  

 
 (Print or type
assignee’s name, address and zip code) 

and irrevocably appoint                    
                                         
                                         
                                         
                                         
                        
 to transfer
this Note on the books of the Company: The agent may substitute another to act for him. 
 Date:
                                        

  

			
	Your Signature:                               
                                         

	                                (sign exactly 
as your name appears
	                                on the face 
of this senior note)
	
	Tax Identification No.:                              
                             
	
	Signature Guarantee:                                
                              

 Signatures must be guaranteed by an “eligible guarantor institution” meeting the requirements of the
Registrar, which requirements include membership or participation in the Security Transfer Agent Medallion Program (“STAMP”) or such other “signature guarantee program” as may be determined by the Registrar
in addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended. 

  
 C-9 

 Option of Holder to Elect Purchase 

If you want to elect to have this Note purchased by the Company pursuant to Section 4.02 of the Fourth Supplemental Indenture, check the
box below: 
  

	 	☐	 Section 4.02 

If you want to elect to have only part of the Note purchased by the Company pursuant to Section 4.02 of the Fourth Supplemental
Indenture, state the amount you elect to have purchased: $ 

Date:                         
                 
  

			
	Your Signature:                               
                                         

	                                (sign exactly 
as your name appears
	                                on the face 
of this senior note)
	
	Tax Identification No.:                              
                             
	
	Signature Guarantee:                                
                              

 Signatures must be guaranteed by an “eligible guarantor institution” meeting the requirements of the
Registrar, which requirements include membership or participation in the Security Transfer Agent Medallion Program (“STAMP”) or such other “signature guarantee program” as may be determined by the
Registrar in addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended. 

  
 C-10Exhibit

PURCHASE AND SALE AGREEMENT AND JOINT ESCROW INSTRUCTIONS

THIS PURCHASE AND SALE AGREEMENT AND JOINT ESCROW INSTRUCTIONS (“Agreement”) is dated as of May 18, 2018 (the “Effective Date”), by and between SRT SECURED TOPAZ, LLC, a Delaware limited liability company (“Seller”), and GINGER INVESTORS, LLC, a California limited liability company, or its permitted assignee (“Buyer”).  
Recitals
A.    Buyer desires to acquire the Property from Seller and Seller desires to sell the Property to Buyer, upon the terms and subject to the conditions set forth in this Agreement. The Property consists of and includes the Land and Improvements (the Real Property), the Lease, the Personal Property and the General Intangibles (as each such term is defined in Addendum 1 attached hereto).  
NOW, THEREFORE, in consideration of the premises, the mutual representations, warranties, covenants and agreements hereinafter contained, and other good and valuable consideration the receipt and sufficiency of which are hereby acknowledged and intending to be legally bound, the Parties hereby agree as follows:
1.Definitions.  Capitalized terms used in this Agreement shall have the meanings set forth in Addendum I attached hereto.
2.Agreement to Purchase and Sell.  Subject to and upon the terms and conditions herein set forth and the representations and warranties contained herein, Seller agrees to sell the Property to Buyer, and Buyer agrees to purchase the Property from Seller.  
3.Consideration.  Seller and Buyer agree that the total Consideration for the Property shall be Four Million One Hundred Sixty Thousand and No/100ths Dollars ($4,160,000.00).
(a)    Deposit; Additional Deposit; Balance of Consideration.  The Consideration shall comprise the following components:
(i)    Initial Earnest Money Deposit; Remaining Earnest Money Deposit.  Within two (2) Business Days of the Effective Date, Buyer shall deposit the Initial Earnest Money Deposit in escrow with the Title Company.  If Buyer notifies Seller in writing on or before the end of the Due Diligence Period of Buyer’s election to proceed to close pursuant to the terms hereof, Buyer shall deposit the Remaining Earnest Money Deposit with the Title Company within two (2) Business Days after the Approval Date.  At Buyer’s request made to the Title Company the Earnest Money shall be held in a federally insured interest-bearing account and interest accruing thereon shall be for the account of Buyer; provided, however, Buyer shall be solely responsible for any costs or fees associated with such account and such account shall permit immediate withdrawal of funds without penalty. In the event the transaction 

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941120.4

contemplated hereby is consummated, the Earnest Money plus interest accrued thereon while held by the Title Company shall be credited against Buyer’s payment obligations under this Agreement.
(ii)    Cash.  Immediately available funds, in an amount equal to the Consideration, less the Earnest Money and the Non-Refundable Payment.
(b)    Non-Refundable Payment. Promptly after receipt of the Earnest Money, as consideration for Seller’s agreement to the terms of Section 4, below, and as a condition precedent to the effectiveness of this Agreement, the Title Company shall deliver directly to Seller from the Earnest Money Deposit, in cash or by wire transfer, immediately available funds in the amount of One Hundred and No/100ths Dollars ($100.00) (the “Non-Refundable Payment”), as consideration for Buyer’s rights under Section 4 of this Agreement and Seller’s execution and delivery of this Agreement.  The Non-Refundable Payment shall be fully earned and retained by Seller immediately upon receipt and, notwithstanding any provisions of this Agreement to the contrary, the Non-Refundable Payment shall not be returned to Buyer in any circumstance but shall be applicable to the Consideration at the Close of Escrow. Buyer acknowledges that Seller would not have agreed to the terms of Section 4 of this Agreement had Buyer not made the Non-Refundable Payment to Seller on the terms set forth in this Section 3(b).
(c)    No Financing Contingency.  Buyer acknowledges and agrees that the acquisition of the Property by Buyer is not conditioned upon Buyer obtaining financing for all or any portion of the Purchase Price.  Notwithstanding the foregoing sentence, Seller agrees to reasonably cooperate with Buyer, at no cost to Seller, in accommodating the reasonable requests of Buyer related to Buyer’s financing; provided, however, Seller shall not be obligated to (i) provide any affidavits, certifications, statements, representations or warranties to or for the benefit of Buyer’s lender, about Seller, the Property or any aspect thereof, except as otherwise required in this Agreement, (ii) incur or undertake additional or other liability or obligation beyond those set forth in this Agreement, or to Buyer’s lender, even if such liability or obligation currently exists under this Agreement, to Buyer; (ii) take any action inconsistent with the terms of this Agreement or any action which, if taken, would effectively modify the terms of this Agreement.  For the avoidance of doubt and by way of example, if Buyer’s lender requests a form of tenant estoppel other than that which is called for under the terms of this Agreement, and Seller accommodates such request, such accommodation shall not modify the terms of this Agreement applicable to tenant estoppels.  Seller’s cooperation in or accommodation of Buyer’s requests relating to its financing does not create or imply that Buyer’s financing or any component thereof is a Buyer Closing Condition, and  Buyer expressly waives the right to asset any such claim premised on Seller’s cooperation with Buyer or Buyer’s lender.
4.Buyer’s Due Diligence.  As more fully provided below, Seller agrees to and will assist and cooperate with Buyer in obtaining access to the Property and certain documents relating thereto for purposes of inspection and due diligence.

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941120.4

(a)    Physical Inspection of the Property.  At any time(s) reasonably requested by Buyer following the Effective Date and prior to Closing, Seller shall afford Buyer and its authorized representatives reasonable access to the Property for purposes of satisfying Buyer with respect to the suitability of the Property for Buyer’s purposes, the representations, warranties and covenants of Seller contained herein and the satisfaction of any conditions precedent to the Closing; provided, however, that Buyer shall not disturb or interfere with the rights of any Tenant. Buyer shall provide Seller with notice on a Business Day not less than twenty-four (24) hours prior to any such inspections, and Seller, at its election, shall have the right to have a representative present during any such investigations.  Seller shall have the right at all times to have a representative of Seller accompany any of Buyer or Buyer’s Agents while such persons are on the Property.  Buyer may conduct Tenant interviews, provided Buyer has given Seller notice on a Business Day not less than twenty-four (24) hours prior to any such interview, and provided further that Seller shall have the right to be present at all such interviews.  Notices to Seller pursuant to this Section 4(a) may be delivered orally (if made in person, and not via voicemail, to Alan Shapiro at 650-581-7606), or by email (if made to Alan Shapiro at alan.shapiro@glenborough.com and no “out of office” response or other response indicating delivery failure or Mr. Shapiro’s unavailability is generated).
(b)    Physical Testing.  Buyer shall not conduct or allow any Physical Testing without Seller’s prior written consent, which consent may be withheld at Seller’s sole and absolute discretion.  Buyer shall provide Seller with notice not less than three (3) Business Days prior to the commencement of any Physical Testing, and if approved by Seller, Seller shall have the right to have its own consultant present for any such work.  Buyer acknowledges and agrees that Seller’s review of Buyer’s work plan is solely for the purpose of protecting Seller’s interests, and shall not be deemed to create any liability of any kind on the part of Seller in connection with such review that, for example, the work plan is adequate or appropriate for any purpose or complies with applicable legal requirements.  All Physical Testing and all other work and investigations shall be performed in compliance with all local, state and federal laws, rules and regulations, including, without limitation, any and all permits required thereunder, all of which shall be at the sole cost and expense of Buyer.
(c)    Damage; Indemnity.  Notwithstanding anything in this Agreement to the contrary, any entry upon, inspection, or investigation of the Property by Buyer or Buyer’s Agents, whether performed before or after the Effective Date, shall be performed at the sole risk and expense of Buyer, and Buyer shall be solely and absolutely responsible for the acts or omissions of Buyer and any of Buyer’s Agents.  Furthermore, Buyer shall protect, indemnify, defend and hold Seller, and its successors, assigns, and affiliates harmless from and against any and all losses, damages (whether general, consequential, punitive or otherwise), liabilities, claims, causes of action, judgments, costs and legal or other expenses (including, but not limited to, reasonable attorneys’ fees and costs) (collectively, “Access Claims”) suffered or incurred by any or all of such indemnified Parties to the extent resulting from (i) any act or omission of Buyer or Buyer’s Agents in connection with entry upon the Property by Buyer or Buyer’s Agents, or the activities, studies or investigations conducted at, to or on the Property by Buyer or Buyer’s Agents, or (ii) any breach on the part of Buyer of its obligations under this Section 4.  If, at any time prior to Closing, Buyer or Buyer’s Agents 

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941120.4

cause any damage to the Property, Buyer shall, at its sole expense, promptly restore the Property to substantially the same condition as existed immediately prior to the occurrence of such damage, as reasonably determined by Seller.  Buyer’s obligation to indemnify, defend and hold Seller harmless shall not apply to matters to the extent arising or resulting from (i) the mere discovery by Buyer of any pre-existing defects in the Property (except to the extent Buyer or Buyer’s Agents exacerbate any such pre-existing condition or such discovery is made in violation of the terms of this Agreement pertaining to Physical Testing); or (ii) the discovery by Buyer of any Hazardous Materials within, on or adjacent to the Property that were not released or deposited by Buyer or any of Buyer’s Agents (except to the extent that Buyer or Buyer’s Agents exacerbate the scope or effect of, or cause additional or further release of, any such Hazardous Materials,  or such discovery is made in violation of the terms of this Agreement pertaining to Physical Testing).  Buyer’s obligations under this Section 4 shall survive the termination of this Agreement or the Closing, as the case may be, notwithstanding any other provisions herein to the contrary, and shall not be limited by the terms of Section 14(c).  Buyer shall, at all times, keep  the Property free and clear of any mechanics’, materialmen’s or design professional’s claims or liens arising out of or relating to Buyer’s or Buyer’s Agents’ investigations of the Property, whether occurring before or after the Effective Date.  
(d)    Liability Insurance.  Prior to any entry onto the Property by Buyer or Buyer’s Agents, Buyer shall provide Seller written evidence that Buyer has procured comprehensive general liability insurance specific to the Property (or with the requisite limits dedicated to the Property) on an “occurrence” form policy covering (at a minimum) (i) the activities of Buyer and Buyer’s Agents on the Property during the period from the Effective Date through the Closing Date; and (ii) Buyer’s indemnity obligation under this Agreement.  Such policy shall provide for a combined single limit in the minimum amount of $1,000,000, be issued by a company authorized to do business in the State in which the Property is located and have a deductible not to exceed $25,000.  Seller shall be named as an additional insured under all such liability insurance and Buyer shall deliver to Seller a copy of the insurer’s endorsements which name Seller as an additional insured and provide for contractual liability coverage, prior to any entry onto the Property by Buyer or Buyer’s Agents.  In addition, and prior to any entry onto the Property by Buyer or Buyer’s Agents, Buyer shall deliver to Seller ACORD certificates evidencing that the insurance required under this section is in full force and effect.  
(e)    Delivery of Documents and Records.  On or before the Effective Date, Seller  delivered the Due Diligence Materials to an electronic data room and provided Buyer with access to the electronic data room.  Except as specifically set forth herein, Seller makes no representations or warranties as to the truth, accuracy or completeness of any materials, data or other information supplied to Buyer in connection with Buyer’s inspection of the Property (e.g., that such materials are complete, accurate, or the final version thereof, or that all such materials are in the Seller’s possession).  It is the Parties’ express understanding and agreement that such materials are provided only for Buyer’s convenience in making its own examination and determination prior to the Approval Date, as to whether or not it wishes to purchase the Property, and, in doing so, Buyer shall rely exclusively on its own independent 

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941120.4

investigation and evaluation of every aspect of the Property and, except as expressly set forth herein, not on any materials supplied by Seller.  Buyer expressly disclaims any intent to rely on any such materials provided to it by Seller in connection with its own inspections and agrees that it shall rely solely on its own independently developed or verified information.  Buyer agrees that delivery may be accomplished by access to the Due Diligence Materials in an electronic data room established by Seller or Seller’s Broker.  
(f)    Contacts with Property Managers.  At any time reasonably requested by Buyer following the Effective Date and prior to Closing, Buyer may contact and interview the property manager/leasing agent(s) for the Property on a Business Day, provided Buyer shall give Seller written notice on a Business Day not less than forty-eight (48) hours in advance of the time Buyer desires to conduct such interview, and Seller or its representative may be present during such interview. Notices to Seller pursuant to this subsection may be delivered orally (if made in person, and not via voicemail, to Alan Shapiro at 650-581-7606), or by email (if made to Alan Shapiro at alan.shapiro@glenborough.com and no “out of office” response or other response indicating delivery failure or Mr. Shapiro’s unavailability is generated).
(g)    Service Contracts.  Seller will terminate all Service Contracts with respect to the Property as of the Closing Date, and will be responsible for and shall pay all amounts owing under such Service Contracts.
(h)    Approval of Title.  Promptly after the Effective Date, Seller shall request that the Title Company deliver to Buyer a Preliminary Title Report with links to or copies of any underlying exceptions or documents referenced therein.  No later than six (6) days prior to the end of the Due Diligence Period, Buyer shall advise Seller what exceptions to title, if any, will be accepted by Buyer.  Seller shall have three (3) days after receipt of Buyer’s objections to give to Buyer: (A) written notice that Seller will remove such objectionable exceptions on or before the Closing Date; or (B) written notice that Seller elects not to cause such exceptions to be removed.  Seller’s failure to give notice to Buyer within the three (3) Business Day period shall be deemed to be Seller’s election not to cause such exceptions to be removed.  If Seller gives Buyer notice or is otherwise deemed to have elected to proceed under clause (B), Buyer shall have until the earlier of (i) three (3) days after receipt of Seller’s actual or deemed notice as to Seller’s unwillingness to cause such exceptions to be removed, or (ii) the end of the Due Diligence Period, to elect to proceed with the transaction or terminate this Agreement.  If Buyer fails to give Seller notice of its election on or before the expiration of such period, Buyer shall be deemed to have elected to terminate this Agreement.  If Seller gives notice pursuant to clause (A) and fails to remove any such objectionable exceptions from title prior to the Closing Date, and Buyer is unwilling to take title subject thereto, Buyer shall have the right to elect to terminate this Agreement and Section 14(a) shall apply.  Notwithstanding the foregoing, Buyer shall be deemed to have objected to any lien encumbering the Property that secures the payment of money, such as mechanics’ liens, materialmen’s liens and judgment liens, and the liens of deeds of trust and mortgages (collectively, “Monetary Liens”), unless Buyer otherwise notifies Seller in writing.  Monetary Liens shall not include non-delinquent assessments or bond amounts encumbering 

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the Property and reflected in the tax bills for the Property, non-delinquent property taxes or assessments, or non-delinquent dues, costs or assessments under declarations, reciprocal easements, or other covenants, conditions or restrictions to which the Property is subject.  Seller hereby agrees to remove at or before the Closing and shall cause the Property to be delivered free and clear of, Monetary Liens caused by Seller, subject in the case of the lien in favor of the Existing Lender, to the Existing Lender’s consent to the release of the Property from the lien.  Buyer agrees that “removal” of an exception shall include the Title Company’s willingness to endorse over such exception or provide affirmative assurance to Buyer of no loss or damage to Buyer from such exception.  
(i)    New Exceptions.  In the event the Title Company notifies Buyer of any New Exceptions to title after the Approval Date, Buyer shall have two (2) Business Days in which to notify Seller of its approval or disapproval of such New Exception.  Failure to deliver notice of approval of such New Exception shall be deemed disapproval of the New Exception.  If Buyer disapproves such New Exception, Seller shall notify Buyer within two (2) Business Days thereafter whether or not Seller can or will cause the removal of such New Exception.  Failure to deliver such notice by Seller shall be deemed Seller’s refusal to cause the removal of such New Exception.  If Seller is unwilling or unable to cause the removal of such New Exception, Buyer shall have the right within two (2) Business Days thereafter in which to waive such objection to title and proceed to Closing, or terminate this Agreement, in which case Section 14(a) shall apply.  Failure by Buyer to deliver notice of waiver shall be deemed Buyer's objection to title and election to terminate this Agreement. Buyer agrees that “removal” of a New Exception shall include the Title Company’s willingness to endorse over such exception or provide affirmative assurance to Buyer of no loss or damage to Buyer from such New Exception.  
(j)    Survey.  Seller has provided Buyer with a copy of an ALTA/NSPS survey of the Property (the “Survey”) completed in 2015, prior to the creation of the Property as a separate legal parcel by recordation of the Parcel Map.  If Buyer elects ALTA extended coverage title insurance, with survey coverage, Buyer shall have the right, at its cost, to update, modify, amend or re-certify the Survey as necessary in order for the Title Company to delete the survey exception from the Title Policy or to otherwise satisfy Buyer’s objectives.  Seller will consent to the use and update of such Survey by Buyer, at Buyer’s cost.  Buyer shall have the right to object to any matters shown in the Survey no later than three (3) days prior to the end of the Due Diligence Period in accordance with Section 4(h).  The receipt of a Survey shall not be a condition precedent to Buyer’s obligation to close the escrow.
(k)    Title Commitment during Due Diligence Period.  Buyer shall use diligent, good faith efforts to obtain from the Title Company no later than the end of the Due Diligence Period, such assurances and commitments as to policy form, coverage and endorsements as Buyer may request for the Title Policy.  Delivery of the Approval Notice to Seller prior to the end of the Due Diligence Period shall constitute Buyer’s approval of matters affecting title to the Property, including any such matters as are shown on the Survey, subject to Buyer’s rights under Section 4(h) and any New Exceptions.  Buyer may elect to obtain an owner’s ALTA extended coverage title insurance policy, and such endorsements as Buyer 

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may require, at Buyer’s cost.  Seller shall execute and deliver to the Title Company the form of owner’s title affidavit set forth in Exhibit G to this Agreement.  It shall be a condition to Buyer’s obligation to close the Escrow that the Title Company not be unwilling or unable to deliver to Buyer as of the Closing its irrevocable commitment to issue to Buyer its Title Policy consistent in all material respects with the commitment, if any, made by the Title Company as of the Approval Date, subject to New Exceptions approved by Buyer.  For the avoidance of doubt, and without limiting the foregoing, if, as of the delivery of the Approval Notice, Buyer is negotiating with the Title Company as to the terms, coverage or endorsements to the Title Policy, it shall not be a condition to Buyer’s obligation to close Escrow that the Title Company agree to such requests by Buyer or provide the coverage or assurances sought by Buyer.  If, prior to the Approval Date, Buyer fails to obtain a commitment from the Title Company generally or as to any particular exception or term of the Title Policy sought by Buyer, Buyer shall be deemed, as of the Approval Date, to have waived objections to such matters (notwithstanding any further efforts to address such issues with the Title Company, and notwithstanding any agreement by Seller to cooperate with Buyer or the Title Company in addressing such matters) and approved all exceptions to title other than Monetary Liens and subsequent New Exceptions. 
(l)    Buyer’s Right to Terminate.  At any time up to and including the Approval Date, Buyer has the unqualified right to terminate this Agreement for any reason or no reason and obtain a full refund of the Earnest Money (and any interest thereon), subject to Buyer’s obligations to return Due Diligence Materials to Seller as provided in the Section entitled “Conditions to Closing.”  On or before the end of the Due Diligence Period, if Buyer is satisfied with its due diligence review of the Property and matters affecting the Property and wishes to proceed with the acquisition of the Property under this Agreement, Buyer shall give the Seller written notice of its approval of the Property and election to proceed under this Agreement (the “Approval Notice”).  If Buyer fails to deliver an Approval Notice to Seller on or before the end of the Due Diligence Period, Buyer shall be deemed to have elected to terminate this Agreement, the Agreement shall automatically terminate as of the end of the Due Diligence Period, and Buyer’s Earnest Money (and any interest thereon) shall immediately be returned to Buyer.  If Buyer timely delivers its Approval Notice to Seller and timely deposits the Remaining Earnest Money with the Escrow Holder, the Earnest Money shall become non-refundable to Buyer except as specifically set forth herein. 
(m)    Natural Hazard Disclosure Statement.  Promptly after the Effective Date, Seller shall cause a third party vendor to prepare and deliver to Seller, for transmittal to Buyer, a Natural Hazards Disclosure Statement pertaining to each Property.  Buyer acknowledges and agrees that notwithstanding express language in such report to the contrary, Seller makes no representations or warranties as to the truth, accuracy or completeness of such report or any information contained in such report, and Buyer shall rely on its own investigation and due diligence as to the completeness or accuracy of such report and any information contained therein.  
5.Conditions to Closing.

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(a)    Buyer Closing Conditions.  The conditions set forth in this Section 5(a) are conditions precedent to Buyer’s obligation to acquire the Property (“Buyer Closing Conditions”).  The Buyer Closing Conditions are intended solely for the benefit of Buyer.  If any of the Buyer Closing Conditions is not satisfied, Buyer shall have the right in its sole discretion either to waive the Buyer Closing Condition and proceed with the acquisition of the Property without adjustment to the Consideration or terminate this Agreement by written notice to Seller and the Title Company.
(i)    Representations and Warranties; Performance.  The representations and warranties of the Seller contained in Addendum II shall be true and correct in all material respects as of the Closing Date as though made at and as of the Closing Date, and Seller shall have timely performed all obligations and covenants of Seller under this Agreement requiring performance prior to the Closing.
(ii)    Title Company Commitment.  The Title Company shall not have withdrawn or modified in any material respect its commitment made as of the Approval Date (if any), to issue the Title Policy at the Closing, subject to New Exceptions approved by Buyer.  
(iii)    Tenant Estoppel.  Seller shall have delivered to Buyer the Tenant Estoppel on or before five (5) days prior to the Closing Date, as required under Section 8 hereunder.
(b)    Seller Closing Conditions.  The conditions set forth in this Section 5(b) are conditions precedent to Seller’s obligation to sell the Property (“Seller Closing Conditions”). The Seller Closing Conditions are intended solely for the benefit of Seller.  If any of the Seller Closing Conditions is not satisfied, Seller shall have the right in its sole discretion either to waive the Seller Closing Condition and proceed with the transaction or terminate this Agreement by written notice to Buyer and the Title Company.
(i)    Lender Consent and Agreement.  The Existing Lender shall have confirmed in writing to Seller that all conditions to the release of the Property from the lien of such lender’s deed of trust have been satisfied, and the Existing Lender shall have released its lien on the Property.  
(ii)    Representations and Warranties; Performance.  The representations and warranties of Buyer contained herein shall be true and correct in all material respects as of the Closing Date as though made at and as of the Closing Date, and Buyer shall have timely performed all covenants and obligations of Buyer under this Agreement requiring performance prior to the Closing.  
(c)    Deemed Approval of Conditions.  In the event that any Party having the right of cancellation hereunder based on failure of a condition precedent set forth herein does not inform the other Party and Title Company in writing of the failure of any condition precedent made for the benefit of such Party prior to the Closing, such failure shall be deemed to have been waived, effective as of the Closing; provided that a Party shall not be deemed to have 

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waived any claim for breach of any representation or warranty by the other Party unless such Party has Actual Knowledge of such breach prior to Closing, in which case such Party shall be deemed to have waived any claim for breach of any representation or warranty of the other Party premised on the event, occurrence or circumstance of which such Party had Actual Knowledge prior to the Closing.  
(d)    Return of Materials.  Upon termination of this Agreement and the escrow for failure of a condition precedent or upon termination by Buyer prior to the end of the Due Diligence Period, and upon Seller’s written request, Buyer shall return to Seller or otherwise delete or destroy all Due Diligence Materials delivered to Buyer by Seller.
6.Closing and Escrow.
(a)    Closing.  The Closing shall occur through the Title Company on the Closing Date.
(b)    Deposit of Agreement and Escrow Instructions.  The Parties shall promptly deposit a fully executed copy of this Agreement with Title Company and this Agreement shall serve as escrow instructions to Title Company for consummation of the transactions contemplated hereby.  Title Company is not a party to this Agreement and its execution and acknowledgement of this Agreement is solely for the purpose of acknowledging receipt of a copy of this Agreement, and is not a condition to the effectiveness of this Agreement as between Buyer and Seller.  The Parties agree to execute such additional escrow instructions as may be appropriate to enable Title Company to comply with the terms of this Agreement; provided, however, that in the event of any conflict between the provisions of this Agreement and any supplementary escrow instructions, the terms of this Agreement shall control unless such supplementary instructions are signed by both Buyer and Seller and a contrary intent is expressly indicated in such supplementary instructions.  Seller and Buyer hereby designate Title Company as the “reporting person” for the transaction pursuant to Section 6045(e) of the Internal Revenue Code and the regulations promulgated thereunder. 
(c)    Seller’s Deliveries to Escrow.  At or before the Closing, Seller shall deliver to the Title Company, in escrow, the following: 
(i)    the original duly executed and acknowledged Deed; 
(ii)    a duly executed original Assignment of Leases;
(iii)    a duly executed original Bill of Sale; 
(iv)    a duly executed original Assignment of General Intangibles;
(v)    a FIRPTA affidavit (in the form attached as Exhibit E) pursuant to Section 1445(b)(2) of the Internal Revenue Code of 1986, and on which Buyer is entitled to rely, that Seller is not a foreign person within the meaning of Section 1445(f)(3) of the Internal Revenue Code, and any equivalents required by the state in which the Property is located; 

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(vi)    any other instruments, records or correspondence called for hereunder which have not previously been delivered.
Seller shall instruct the Title Company to deliver a conformed copy of the original Deed, and the originals of the other, foregoing documents, to Buyer upon Closing.  
(d)    Seller’s Deliveries to Buyer.
(i)    Deliveries at Closing.  At or before the Closing, Seller shall deliver to Buyer the following:
a)    a Rent Roll dated as of the first day of the month in which the Closing Date occurs;
b)    subject to Seller’s obligations in Section 8, a duly executed original Tenant Estoppel, to the extent required hereunder;
c)    one original form notice to Tenant, informing it of this transaction; and
d)    all keys, combinations and electronic passwords to the Property.
(ii)    Deliveries After Closing.  Promptly after closing, Seller shall deliver to Buyer the following, to the extent they have not already been delivered:
a)    originals of the Lease, to the extent available; and
b)    any other instruments, records or correspondence called for hereunder which have not previously been delivered, to the extent available.
(e)    Buyer’s Deliveries to Escrow.  At or before the Closing, Buyer shall deliver or cause to be delivered in escrow to the Title Company the following: 
(i)    a duly executed Assignment of Leases; 
(ii)    a duly executed Assignment of General Intangibles; and
(iii)    the Cash.
(f)    Deposit of Other Instruments.  Seller and Buyer shall each deposit such other instruments as are reasonably required by Title Company or otherwise required to close the escrow and consummate the transactions described herein in accordance with the terms hereof.
7.Closing Adjustments and Prorations.  With respect to the Property, the following adjustments shall be made, and the following procedures shall be followed:

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(a)    Basis of Prorations.  All prorations shall be calculated as of 12:01 a.m. on the Closing Date, on the basis of a 365-day year.
(b)    Items Not to be Prorated.  There shall be no prorations or adjustments of any kind with respect to:
(i)    Insurance Premiums.  Buyer shall be responsible to obtain insurance covering such risks as Buyer deems necessary or appropriate, commencing as of the Closing Date.  
(ii)    Delinquent Rents for Full Months Prior to the Month in which the Closing Occurred.  Delinquent Rents for full months prior to the month in which the Closing occurred shall remain the property of Seller, and Buyer shall have no claim thereto, whether collected before or after the Closing.  Seller shall have the right to take collection measures against Tenant (including litigation), however Seller shall not seek any remedy which would interfere with Tenant’s continued occupancy and full use of its premises under Tenant’s Lease, or Buyer’s rights to receive Rents with respect to any period from or after the Closing Date.  In the event that Buyer collects any delinquent Rents relating to any period before the Closing Date, Buyer shall promptly pay such amounts (less Buyer’s commercially reasonable expenses incurred in connection therewith) over to Seller in accordance with the procedures set forth in subsection (d) below.  Buyer shall use commercially reasonable efforts to collect such amounts due from Tenant; provided that Buyer shall not be required to interfere with Tenant’s continued occupancy and full use of its premises under Tenant’s Lease, or Buyer’s rights to receive Rents or Additional Rent with respect to any period beginning on the Closing Date
(iii)    Additional Rents Relating to Full or Partial Months Prior to the Closing Date.  If Additional Rents relating to full or partial months prior to the Closing Date are not finally adjusted between Seller and Tenant until after the Closing Date, then any refund to which Tenant may be entitled shall be the obligation of Seller, and any additional amounts due from Tenant for such period shall be the property of Seller.  Buyer shall have no obligation with respect to any such refund due to Tenant and no claim to any such amounts due from Tenant, except that Buyer shall promptly pay to Seller any such delinquent Additional Rent amounts as it actually collects (less Buyer’s commercially reasonable expenses incurred in connection therewith), in accordance with the procedures set forth in subsection (d) below.  Seller shall have the right to take collection measures against any delinquency on the part of Tenant (including litigation), however Seller shall not seek any remedy which would interfere with Tenant’s continued occupancy and full use of its premises under Tenant’s Lease, or Buyer’s rights to receive Rent with respect to any period from or after the Closing Date.  If Seller receives any refund of expenses paid prior to the Closing and relating to a period prior to the Closing, and such expenses were reimbursed in whole or in part by Tenant, Seller shall refund to Tenant its share of any such refund. Buyer shall use commercially reasonable efforts to collect such 

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amounts due from Tenant; provided that Buyer shall not be required to interfere with Tenant’s continued occupancy and full use of its premises under Tenant’s Lease, or Buyer’s rights to receive Rent or Additional Rent with respect to any period beginning on the Closing Date.
(c)    Closing Adjustments.  At least five (5) days prior to Closing, Seller shall prepare and deliver to Buyer for review, comment and agreement, a proration statement for the Property, and each Party shall be credited or charged at the Closing, in accordance with the following:
(i)    Rents and Additional Rents.  Seller shall account to Buyer for any Rents and Additional Rents actually collected by Seller for the rental period in which the Closing occurs, and Buyer shall be credited for its pro rata share.
(ii)    Expenses.  
a)    Prepaid Expenses.  To the extent Expenses have been paid prior to the Closing Date for the rental period in which the Closing occurs, Seller shall account to Buyer for such prepaid Expenses, and Seller shall be credited for the amount of such prepaid Expenses applicable to the period after the Closing Date.
b)    Unpaid Expenses.  To the extent Expenses relating to the rental period in which the Closing occurs are unpaid as of the Closing Date but are ascertainable, Buyer shall be credited for Seller’s pro rata share of such Expenses for the period prior to the Closing Date. 
(iii)    Property Taxes. Subject to the limitations described in this subsection, the Title Company shall pro-rate real property taxes and any special assessments (collectively, “Property Taxes”) based on the most recent available tax bills.  
a)    Pre-Paid Property Taxes.  The County required, in connection with the recordation of the parcel map creating the Property as a separate, legal parcel, that Seller pre-pay estimated Property Taxes for the Real Property and the center of which the Real Property is a part, for tax year 2018-2019 in the amount of $104,300 (“Pre-Paid Property Taxes”).  The Pre-Paid Property Taxes include an estimate for the Real Property in the amount of $46,173.01 (the “Allocated Share”).  At the Closing, Buyer shall reimburse Seller for the full amount of its Allocated Share of Pre-Paid Property Taxes.
b)      Post-Closing Adjustment. Property Taxes for tax year 2017-2018 shall be subject to a post-Closing adjustment once the actual tax bills are available (to the extent that the same are not available at Closing for the period in which the Closing occurs).  Property Taxes for tax year 2018-2019 shall be subject to a post-Closing adjustment once the actual tax bills for the Property (as subdivided by the Parcel Map) are available.  Notwithstanding 

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anything herein to the contrary, Buyer shall be solely responsible for any increased taxes resulting from the change in ownership of the Property from Seller to Buyer or resulting from an increased tax levy based upon the Consideration paid hereunder.  This subsection shall survive the Closing.  
(d)    Post-Closing Adjustments.  After the Closing Date, Seller and Buyer shall make post-Closing adjustments in accordance with the following: 
(i)    Non-delinquent Rents.  If either Buyer or Seller collects any non-delinquent Rents or Additional Rents applicable to the month in which the Closing occurred, such Rents or Additional Rents shall be prorated as of the Closing Date and paid to the Party entitled thereto within ten (10) days after receipt.
(ii)    Delinquent Rents for month in which the Closing occurred.  If either Buyer or Seller collects any Rents or Additional Rents that were delinquent as of the Closing Date and that relate to the rental period in which the Closing occurred, then such Rents or Additional Rents shall be applied in the following order of priority: first, to reimburse Buyer or Seller for all reasonable out-of-pocket, third-party collection costs actually incurred by Buyer or Seller in collecting such Rents or Additional Rents (including the portion thereof relating to the period after the Closing Date); second, to satisfy Tenant’s Rent or Additional Rent obligations relating to the period after the Closing Date; and third, to satisfy such delinquent Rent or Additional Rent obligations relating to the period prior to the Closing Date.  Seller shall have the right to take collection measures against any delinquency on the part of Tenant (including litigation), however Seller shall not seek any remedy which would interfere with Tenant’s continued occupancy and full use of its premises under Tenant’s Lease, or Buyer’s rights to receive Rent with respect to any period from or after the Closing Date.  Buyer shall use commercially reasonable efforts to collect such amounts due from Tenant; provided that Buyer shall not be required to interfere with Tenant’s continued occupancy and full use of its premises under Tenant’s Lease, or Buyer’s rights to receive Rent or Additional Rent with respect to any period beginning on the Closing Date.  
(iii)    Expenses.  With respect to any invoice received by Buyer or Seller after the Closing Date for Expenses that relate to the period in which the Closing occurred and for which a proration was not made at the Closing pursuant to the proration statement delivered to Buyer by Seller prior to the Closing, the Party receiving such invoice shall give the other Party written notice of such invoice, and the other Party shall have thirty (30) days to review and approve the accuracy of any such invoice.  If the Parties agree that the invoice is accurate and should be paid, Seller shall compute Seller’s pro rata share, write a check for that amount in favor of the vendor, and then send the invoice and check to Buyer, in which case Buyer agrees that it will pay for its share and forward the invoice and the two payments to the vendor.
(iv)    Payment of 2018 Expenses by Tenant; True Up.  To the extent that Seller has actually collected any portion of Expenses from Tenant under the Lease as 

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Additional Rents for calendar year 2018, Seller may retain all such Additional Rents in amounts not to exceed Tenant’s share of Expenses actually paid, as determined by the 2018 Stub Reconciliation (defined below) to the extent such Additional Rents reflect Tenant’s share of Expenses through the Closing Date.  Any Additional Rents collected by Seller from Tenant that apply to Tenant’s share of Expenses for any period after the Closing Date shall be credited to Buyer and charged to Seller’s account at Closing (or, if not discovered until after Closing, then promptly thereafter as part of the 2018 Stub Reconciliation).  Within sixty (60) days after the Closing, Seller shall prepare and deliver to Buyer a reconciliation Expense statement for the period from and after January 1, 2018, to but not including the Closing Date (the “2018 Stub Reconciliation”).  If the 2018 Stub Reconciliation evidences that Seller under-collected Expenses from Tenant for such period, Buyer shall pay such amounts to Seller within thirty (30) days after Tenant pays same (less Buyer’s commercially reasonable, out-of-pocket expenses incurred in connection therewith).  If the 2018 Stub Reconciliation evidences that Seller has over-collected Additional Rent from Tenant for such period and Buyer did not receive a credit at Closing for the Expenses to which such Additional Rents applies, Seller shall pay such over-collected amounts to Buyer within thirty (30) days after delivery of the 2018 Stub Reconciliation, and Buyer shall thereafter be responsible for making reimbursement to Tenant or applying the same to Expenses in accordance with the Lease.  The 2018 Stub Reconciliation shall be final and binding on the parties as to 2018 Additional Rent and shall not be subject to modification or adjustment based on subsequent or later reconciliations prepared by Buyer or required under the Lease.  
(v)    Survival of Obligations.  The obligations of Seller and Buyer under the Subsection entitled “Post-Closing Adjustments” shall survive the Closing for a period of six (6) months from the Closing Date, at which point all such adjustments shall be made in a final accounting and all prorations hereunder shall be deemed final for all purposes; provided, however, the final true-up of 2018 Additional Rent shall be based on the 2018 Stub Reconciliation, and the Property Tax post-closing adjustment in Section 7(c)(iii) shall survive the Closing without regard to such 6-month limitation.
(e)    Allocation of Closing Costs.  Closing costs shall be allocated as set forth below:
(i)    Escrow charges: 50% to Buyer and 50% to Seller.
(ii)    Recording fees for Deed: 100% to Seller.
(iii)    Title insurance premium for the Title Policy: 100% to Seller for the premium for standard owner’s coverage in the amount of the Purchase Price.  Buyer shall be solely responsible for the cost of survey and extended coverage and all endorsements other than endorsements obtained by Seller to remove exceptions Seller agrees to remove, which shall be at Seller’s cost.
(iv)    Transfer taxes: 100% to Seller.

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(v)    Survey costs: 100% to Seller for the initial Survey; 100% to Buyer for updates, modifications and certification.
(vi)    Attorneys’ Fees:  Each party to pay its own fees.
(vii)    Other: According to custom where the Property is located.  
8.Tenant Estoppel.  Seller shall use all reasonable efforts to obtain a Tenant Estoppel from Tenant.  Seller shall use commercially reasonable efforts to deliver a Tenant Estoppel to Buyer no later than ten (10) days prior the Closing Date, however, it shall be a condition to Buyer’s obligation to close the acquisition of the Property that not later than five (5) days prior to the Closing Date, Seller shall have delivered to Buyer an executed Tenant Estoppel substantially in the form attached hereto as Exhibit F, which shall (i) be dated no earlier than forty-five (45) days prior to the Closing Date, (ii) not conflict with the information in the most recent Rent Roll, (iii) allege (to Tenant’s knowledge) no defaults, offsets, or claims against Seller, and (iv) allege no facts that are inconsistent in any material respect with the representations and warranties of Seller in this Agreement or the Due Diligence Materials provided by Seller to Buyer.
9.Transfer of Property “As Is”.  
(a)EXCEPT FOR THE REPRESENTATIONS AND WARRANTIES OF SELLER MADE IN THIS AGREEMENT AND THE TRANSACTION DOCUMENTS (AS DEFINED IN ADDENDUM 1), BUYER, FOR ITSELF, ITS AGENTS, AFFILIATES, SUCCESSORS AND ASSIGNS, ACKNOWLEDGES THAT NO SELLER RELATED PARTY HAS MADE ANY ORAL OR WRITTEN REPRESENTATIONS, WARRANTIES, PROMISES OR GUARANTEES WHATSOEVER TO BUYER, WHETHER EXPRESS OR IMPLIED, REGARDING THE PROPERTY OR ANY CONSTITUENT ELEMENT OF THE PROPERTY (INCLUDING THE LAND, IMPROVEMENTS AND LEASE) AND, IN PARTICULAR, NO SUCH REPRESENTATIONS, WARRANTIES, GUARANTIES OR PROMISES HAVE BEEN MADE WITH RESPECT TO THE PHYSICAL CONDITION OR OPERATION OF THE PROPERTY, TITLE TO OR THE BOUNDARIES OF THE PROPERTY, SOIL CONDITIONS, THE ENVIRONMENTAL CONDITION OF THE PROPERTY, INCLUDING, WITHOUT LIMITATION, THE PRESENCE, DISCOVERY, RELEASE, THREATENED RELEASE OR REMOVAL OF HAZARDOUS MATERIALS (INCLUDING, WITHOUT LIMITATION, THE PRESENCE OF ASBESTOS OR ASBESTOS CONTAINING MATERIALS), THE ACTUAL OR PROJECTED REVENUE AND EXPENSES FOR THE PROPERTY, THE ZONING AND OTHER LAWS, REGULATIONS OR RULES APPLICABLE TO THE PROPERTY OR THE COMPLIANCE OF THE PROPERTY THEREWITH,  THE AVAILABILITY OR ADEQUACY OF ENTITLEMENTS OR APPROVALS FOR DEVELOPMENT OF THE PROPERTY OR ANY PORTION THEREOF, THE USE OR OCCUPANCY OF THE PROPERTY OR ANY PART THEREOF, OR ANY OTHER MATTER OR THING AFFECTING OR RELATED TO THE PROPERTY OR THE TRANSACTIONS CONTEMPLATED HEREBY, EXCEPT AS, AND SOLELY TO THE EXTENT, SPECIFICALLY SET FORTH IN THIS AGREEMENT. EXCEPT FOR ITS RELIANCE ON THE REPRESENTATIONS AND WARRANTIES OF SELLER 

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SPECIFICALLY SET FORTH HEREIN AND SUBJECT TO THE TERMS AND CONDITIONS OF THIS AGREEMENT, BUYER AGREES TO ACCEPT THE PROPERTY “AS IS, WHERE-IS, AND WITH ALL FAULTS” IN ITS PRESENT CONDITION, SUBJECT IN THE CASE OF THE REAL PROPERTY TO REASONABLE USE, WEAR AND TEAR, BETWEEN THE DATE HEREOF AND THE CLOSING DATE, AND FURTHER AGREES THAT EXCEPT FOR ANY BREACH OF ITS REPRESENTATIONS AND WARRANTIES SPECIFICALLY SET FORTH HEREIN, SELLER SHALL NOT BE LIABLE FOR ANY LATENT DEFECTS IN THE PROPERTY OR BOUND IN ANY MANNER WHATSOEVER BY ANY GUARANTEES, PROMISES, PROJECTIONS, OPERATING OR PERFORMANCE STATEMENTS, SETUPS OR OTHER INFORMATION PERTAINING TO THE PROPERTY MADE, FURNISHED OR CLAIMED TO HAVE BEEN MADE OR FURNISHED BY SELLER OR ANY SELLER RELATED PARTY, WHETHER ORALLY OR IN WRITING.
(a)    Buyer’s delivery of an Approval Notice is Buyer’s acknowledgement that it will have reviewed or have had adequate time and opportunity to review the Due Diligence Materials and conduct its diligence review of the Property and matters affecting the Property.
(b)    Buyer further acknowledges that certain of the Due Diligence Materials may have been prepared by parties other than Seller (or a Seller Related Party) and Seller makes no representation or warranty of any kind whatsoever, express or implied, as to the accuracy or completeness of any Due Diligence Materials prepared by third parties.
(c)    Buyer acknowledges that it has not relied upon any representations or warranties by Seller or any Seller Related Party not specifically set forth herein, and has entered into this Agreement after having made and relied solely on its own independent investigation, inspections, analyses, appraisals and evaluations of facts and circumstances.
(d)    Buyer is an experienced purchaser of commercial real properties, and has retained, or has access to, advisors and consultants sophisticated in the purchase of commercial real property.  Buyer and its advisors have experience in acquiring, owning and operating real property in the nature of the Property. Buyer is familiar with the risks associated with sale transactions that involve purchases based on limited information, representations and disclosures.  Buyer understands and is freely taking all risks involved in connection with this transaction.
(e)    Buyer acknowledges that, except as specifically set forth herein, Seller hereby specifically disclaims any warranty or guaranty, oral or written, implied or arising by operation of law, and any warranty of condition, habitability, merchantability or fitness for a particular purpose, in respect to the Property.
(f)    Except for those matters expressly set forth in this Agreement to survive the Closing and except for Seller’s representations and warranties in this Agreement and the Transaction Documents, and the agreements of Seller and Buyer set forth in the Transaction Documents or otherwise entered into at the Closing, Buyer agrees that Buyer’s acceptance of the Deed shall be and be deemed to be an agreement by Buyer that Seller has fully performed, 

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discharged and complied with all of Seller’s obligations, covenants and agreements hereunder and that Seller shall have no further liability with respect thereto.
(g)    AS A MATERIAL INDUCEMENT TO SELLER TO AGREE TO SELL THE PROPERTY TO BUYER AND TO EXECUTE THIS AGREEMENT, EXCEPT TO THE EXTENT SPECIFICALLY PROVIDED TO THE CONTRARY HEREIN OR IN THE DEED AND OTHER INSTRUMENTS TO BE EXECUTED AND DELIVERED BY SELLER AT THE CLOSING, OR ANY ACTION FOR BREACH OF ANY REPRESENTATION, WARRANTY AND/OR COVENANT OF SELLER SPECIFICALLY SET FORTH HEREIN,  BUYER, FOR ITSELF AND ITS AGENTS, AFFILIATES, SUCCESSORS AND ASSIGNS, HEREBY WAIVES, RELEASES, ACQUITS AND FOREVER DISCHARGES THE SELLER RELATED PARTIES FROM ALL CLAIMS, CAUSES OF ACTION, DEMANDS, LOSSES, DAMAGES, LIABILITIES, COSTS AND EXPENSES (INCLUDING ATTORNEY’S FEES AND DISBURSEMENTS WHETHER SUIT IS INSTITUTED OR NOT) WHICH BUYER HAS OR MAY HAVE IN THE FUTURE ON ACCOUNT OF OR IN ANY WAY ARISING OUT OF THE PROPERTY OR ANY OF ITS CONSTITUENT ELEMENTS (INCLUDING THE LAND, THE IMPROVEMENTS, THE PERSONAL PROPERTY, THE GENERAL INTANGIBLES, THE CONTRACTS AND THE LEASE), INCLUDING, WITHOUT LIMITATION, WITH RESPECT TO (I) ALL MATTERS DESCRIBED IN SUBPARAGRAPH (A), ABOVE AS ACCEPTED BY BUYER IN “AS IS, WHERE IS, WITH ALL FAULTS” CONDITION, (II) THE STRUCTURAL AND PHYSICAL CONDITION OF THE REAL PROPERTY OR ITS SURROUNDINGS, (III) THE FINANCIAL CONDITION OF THE OPERATION OF THE PROPERTY EITHER BEFORE OR AFTER THE CLOSING DATE, (IV) ANY LAW, ORDINANCE, RULE, REGULATION, RESTRICTION OR LEGAL REQUIREMENT WHICH IS NOW OR MAY HEREAFTER BE APPLICABLE TO THE PROPERTY, (V) THE FINANCIAL CONDITION OR STATUS OF TENANT OR TENANCY FOR THE PROPERTY, (VI) THE ENVIRONMENTAL CONDITION OF THE PROPERTY, INCLUDING, WITHOUT LIMITATION, THE PRESENCE, DISCOVERY OR REMOVAL OF ANY HAZARDOUS MATERIALS IN, AT, ABOUT OR UNDER THE PROPERTY OR THE APPLICABILITY TO THE PROPERTY OF ANY ENVIRONMENTAL LAWS, AS SUCH ACTS MAY BE AMENDED FROM TIME TO TIME, OR ANY OTHER FEDERAL, STATE OR LOCAL STATUTE OR REGULATION RELATING TO ENVIRONMENTAL CONTAMINATION AT, IN OR UNDER THE PROPERTY, (VII) THE PRESENCE OR CONDITION OF UNDERGROUND STORAGE TANKS AT THE PROPERTY, OR THEIR COMPLIANCE WITH APPLICABLE LAWS, (VIII) ANY OTHER CONDITIONS, INCLUDING, WITHOUT LIMITATION, ENVIRONMENTAL AND OTHER PHYSICAL CONDITIONS, AFFECTING THE PROPERTY WHETHER THE SAME ARE A RESULT OF NEGLIGENCE OR OTHERWISE, INCLUDING SPECIFICALLY, BUT WITHOUT LIMITATION, ANY CLAIM FOR INDEMNIFICATION OR CONTRIBUTION ARISING UNDER ENVIRONMENTAL LAWS (AS DEFINED IN ADDENDUM I), WHETHER ARISING BASED ON EVENTS THAT OCCURRED BEFORE, DURING, OR AFTER SELLER’S PERIOD OF OWNERSHIP OF THE PROPERTY AND WHETHER BASED ON THEORIES OF INDEMNIFICATION, CONTRIBUTION OR OTHERWISE. THE 

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RELEASE SET FORTH IN THIS SECTION SPECIFICALLY INCLUDES, WITHOUT LIMITATION, ANY CLAIMS UNDER ENVIRONMENTAL LAWS (AS DEFINED IN ADDENDUM I) OR UNDER THE AMERICANS WITH DISABILITIES ACT OF 1990, AS ANY OF THOSE LAWS MAY BE AMENDED FROM TIME TO TIME AND ANY REGULATIONS, ORDERS, RULES OF PROCEDURES OR GUIDELINES PROMULGATED IN CONNECTION WITH SUCH LAWS, REGARDLESS OF WHETHER THEY ARE IN EXISTENCE ON THE DATE OF THIS AGREEMENT. NOTWITHSTANDING THE FOREGOING, SELLER SHALL REMAIN LIABLE FOR, AND BUYER DOES NOT WAIVE OR RELEASE CLAIMS BASED ON FRAUD, GROSS NEGLIGENCE OR WILLFUL MISCONDUCT ON THE PART OF SELLER OR ANY SELLER RELATED PARTY.  BUYER SHALL NOT MAKE OR INSTITUTE ANY CLAIMS AGAINST ANY OF THE SELLER RELATED PARTIES WHICH ARE INCONSISTENT WITH THE FOREGOING.  BUYER AGREES THAT THIS RELEASE SHALL BE GIVEN FULL FORCE AND EFFECT ACCORDING TO EACH OF ITS EXPRESSED TERMS AND PROVISIONS. THIS RELEASE INCLUDES CLAIMS OF WHICH BUYER IS PRESENTLY UNAWARE OR WHICH BUYER DOES NOT PRESENTLY SUSPECT TO EXIST, WHICH IF KNOWN BY BUYER, WOULD MATERIALLY AFFECT BUYER’S RELEASE TO SELLER.  ACCORDINGLY, AND WITHOUT LIMITING THE FOREGOING, BUYER HEREBY WAIVES CALIFORNIA CIVIL CODE SECTION 1542, WHICH PROVIDES AS FOLLOWS:
“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN TO HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.”
IN THIS CONNECTION AND TO THE MAXIMUM EXTENT PERMITTED BY LAW, BUYER AGREES AND ACKNOWLEDGES THAT FACTUAL MATTERS NOW UNKNOWN TO IT MAY HAVE GIVEN OR MAY HEREAFTER GIVE RISE TO CAUSES OF ACTION, CLAIMS, DEMANDS, DEBTS, CONTROVERSIES, DAMAGES, COSTS, LOSSES AND EXPENSES WHICH ARE PRESENTLY UNKNOWN, UNANTICIPATED AND UNSUSPECTED, AND BUYER FURTHER AGREES AND ACKNOWLEDGES THAT THE WAIVERS AND RELEASES HEREIN HAVE BEEN NEGOTIATED AND AGREED UPON IN LIGHT OF THAT REALIZATION AND THAT BUYER NEVERTHELESS HEREBY INTENDS TO RELEASE, DISCHARGE, AND ACQUIT THE SELLER RELATED PARTIES FROM ANY SUCH UNKNOWN CAUSES OF ACTION, CLAIMS, DEMANDS, DEBTS, CONTROVERSIES, DAMAGES, COSTS, LOSSES AND EXPENSES EXCEPT TO THE EXTENT CAUSED BY FRAUD, GROSS NEGLIGENCE OR WILLFUL MISCONDUCT ON THE PART OF SELLER OR ANY SELLER RELATED PARTY.  BUYER ACKNOWLEDGES THAT BUYER HAS BEEN REPRESENTED BY INDEPENDENT LEGAL COUNSEL OF BUYER’S SELECTION AND BUYER IS GRANTING THIS RELEASE OF ITS OWN VOLITION AND AFTER CONSULTATION WITH BUYER’S COUNSEL. BUYER ACKNOWLEDGES THAT BUYER HAS CAREFULLY 

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REVIEWED THIS SECTION 9 AND DISCUSSED ITS IMPORT WITH LEGAL COUNSEL AND THAT THE PROVISIONS OF THIS SECTION 9 ARE A MATERIAL PART OF THIS AGREEMENT.
Buyer’s Initials ______
(h)    In no event shall Seller be liable to Buyer for any incidental, special, exemplary, punitive or consequential damages, including, without limitation, loss of profits or revenue, interference with business operations, loss of tenants, lenders, investors, buyers, diminution in value of the Property, or inability to use the Property, due to the condition of the Property.
(i)    THIS SECTION 9 SHALL SURVIVE CLOSING AND DELIVERY OF THE DEED, OR TERMINATION OF THIS AGREEMENT, AND SHALL BE DEEMED INCORPORATED BY REFERENCE AND MADE A PART OF ALL DOCUMENTS DELIVERED BY SELLER TO BUYER IN CONNECTION WITH THE SALE OF THE PROPERTY.
10.Seller’s Representations and Warranties.  Seller represents and warrants to Buyer the matters set forth on Addendum II, which is incorporated herein by this reference as though fully set forth herein.  Other than as expressly contained in this Agreement and Addendum II, Seller makes no representations or warranties of any kind relating to the Property or its condition or fitness.  Buyer is entitled to rely on Seller’s representations and warranties notwithstanding Buyer’s inspection and investigation of the Property, except to the extent that Buyer has Actual Knowledge on or before the Closing Date that any such representation or warranty is inaccurate in any material respect, and such inaccuracy did not result from a Seller R&W Breach (as defined below).  Seller shall promptly notify Buyer if, prior to the Closing, Seller has Actual Knowledge that any representation or warranty of Seller was inaccurate in any material respect on the Effective Date (a “Seller R&W Breach”), or was true when given on the Effective Date but became inaccurate in any material respect after the Effective Date (a “Seller R&W Change”).  If, prior to the Closing, Buyer has Actual Knowledge (whether from Seller or its own investigation) that a Seller R&W Breach has occurred and Seller is unable to cure such Seller R&W Breach within ten (10) days after notice from Buyer of such R&W Breach, such Seller R&W Breach shall be a default on the part of Seller, and Buyer, in its sole discretion, shall have the right, as its sole and exclusive remedies, to (i) terminate this Agreement, upon which termination the Earnest Money (plus interest earned thereon) shall be returned to Buyer, and if such Seller R&W Breach has resulted in a loss in excess of the Material Damage Floor, Seller shall pay the Expense Reimbursement to Buyer within ten (10) Business Days after delivery to Seller of reasonable evidence of the loss sustained by Buyer and a statement of Buyer’s reimbursable expenses, in which case the Parties shall have no further rights or obligations under this Agreement except for those rights and obligations which expressly survive termination of this Agreement, or (ii) waive such Seller R&W Breach and proceed to Closing.  If, prior to the Closing, Buyer has Actual Knowledge (whether from Seller or its own investigation) that a Seller R&W Change has occurred, such Seller R&W Change was not caused by a material breach by Seller of its covenants under this Agreement or by an affirmative, intentional act on the part of Seller which caused such representation and warranty to become inaccurate in any material respect, and Seller is unable within ten (10) days after notice from Buyer of such R&W Change to 

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eliminate such inaccuracy, Buyer shall have the right, as its sole and exclusive remedy, to (i) terminate this Agreement, upon which termination the Earnest Money (plus interest earned thereon) shall be returned to Buyer and the Parties shall have no further rights or obligations under this Agreement except for those rights and obligations which expressly survive termination of this Agreement, or (ii) waive such Seller R&W Change and proceed to Closing.  If, however, such Seller R&W Change was caused by a material breach by Seller of its covenants under this Agreement or by an affirmative, intentional act on the part of Seller which caused such representation and warranty to become inaccurate in any material respect, such Seller R&W Change shall constitute a Seller R&W Breach, and if Seller is unable to cure such Seller R&W Breach within ten (10) days after notice from Buyer of such Seller R&W Breach, such Seller R&W Breach shall be a default on the part of Seller, and Buyer, in its sole discretion, shall have the right, as its sole and exclusive remedies, to (i) terminate this Agreement, upon which termination the Earnest Money (plus interest earned thereon) shall be returned to Buyer, and if such Seller R&W Breach has resulted in a loss in excess of the Material Damage Floor, Seller shall pay the Expense Reimbursement to Buyer within ten (10) Business Days after delivery to Seller of reasonable evidence of the loss sustained by Buyer and a statement of Buyer’s reimbursable expenses, in which case the Parties shall have no further rights or obligations under this Agreement except for those rights and obligations which expressly survive termination of this Agreement, or (ii) waive such Seller R&W Breach and proceed to Closing.  If, prior to the Closing, Buyer has Actual Knowledge that any representation or warranty of Seller is inaccurate in any material respect and Buyer consummates the Closing, such representation or warranty shall be deemed modified by Buyer’s Actual Knowledge. Seller shall be liable to Buyer for a breach by Seller of any one or more of the representations and warranties of Seller made herein, only if (i) the breach thereof is first discovered subsequent to Closing, (ii) the claim thereon is asserted by Buyer to Seller in writing on or before the date one hundred eighty (180) days after Closing, and (iii) the amount of any such loss, cost, liability, damage and expense suffered by Purchaser (when aggregated with all other amounts for which Seller may be liable in connection with breaches of its representations, warranties or covenants under this Agreement) shall exceed the Material Damage Floor.  In no event shall the amount of any such loss, cost, liability, damage and expense for which Seller shall be liable under this Section 10 (when aggregated with all other damages for which Seller may be liable in connection with breaches of its representations, warranties or covenants under this Agreement) exceed the Material Damage Ceiling.  
11.Buyer’s Representations and Warranties.  Buyer hereby represents and warrants, as of the Effective Date and as of the Closing Date, to Seller as follows:
(a)    Buyer is duly organized, validly existing and in good standing under the laws of the State of its formation, and as of the Closing will be qualified to do business in the State in which the Property is located.
(b)    Buyer has full power and authority to execute and deliver this Agreement and to perform all of the terms and conditions hereof to be performed by Buyer and to consummate the transactions contemplated hereby.  This Agreement and all documents executed by Buyer which are to be delivered to Seller at Closing have been duly executed and delivered by Buyer and are or at the time of Closing will be the legal, valid and binding obligation of Buyer and enforceable against Buyer in accordance with its or their respective terms, except 

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as the enforcement thereof may be limited by applicable Creditors’ Rights Laws.  Buyer is not presently subject to any bankruptcy, insolvency, reorganization, moratorium, or similar proceeding.
(c)    The entities and individuals executing this Agreement and the instruments referenced herein on behalf of Buyer and its constituent entities, if any, have the legal power, right and actual authority to bind Buyer to the terms and conditions hereof and thereof.
(d)    Neither the execution and delivery of this Agreement, nor the consummation of the transactions contemplated by this Agreement, nor the compliance with the terms and conditions hereof will violate or conflict, in any material respect, with any provision of Buyer’s organizational documents or to Buyer’s Actual Knowledge any statute, regulation or rule, or, to Buyer’s Actual Knowledge, any injunction, judgment, order, decree, ruling, charge or other restrictions of any government, governmental agency or court to which Buyer is subject, and which violation or conflict would have a material adverse effect on Buyer.  Buyer is not a party to any contract or subject to any other legal restriction that would prevent fulfillment by Buyer of all of the terms and conditions of this Agreement or compliance with any of the obligations under it.
(e)    To Buyer’s Actual Knowledge all material consents required from any governmental authority or third party in connection with the execution and delivery of this Agreement by Buyer or the consummation by Buyer of the transactions contemplated hereby have been made or obtained or shall have been made or obtained by the Closing Date.  Complete and correct copies of all such consents shall be delivered to Seller.
(f)    Buyer has made (or will make prior to the Closing Date) an independent investigation with regard to the Property, will have ascertained to its satisfaction the extent to which the Property complies with applicable zoning, building, environmental, health and safety and all other laws codes and regulations, and Buyer’s intended use thereof, including without limitation, review and/or approval of matters disclosed by Seller pursuant to this Agreement.
(g)    There is no litigation pending or, to Buyer’s Actual Knowledge, threatened, against Buyer or any basis therefor that might materially and detrimentally affect the ability of Buyer to perform its obligations under this Agreement.  Buyer shall notify Seller promptly of any such litigation of which Buyer becomes aware.
(h)    Buyer is not, nor is any person who owns a controlling interest in or otherwise controls Buyer, (a) listed on the Specially Designated Nationals and Blocked Persons List maintained by the Office of Foreign Assets Control (“OFAC”), Department of the Treasury, and/or on any other similar list maintained by the OFAC pursuant to any authorizing statute, Executive Order or regulation (collectively, “OFAC Laws and Regulations”); or (b) a person either (i) included within the term “designated national” as defined in the Cuban Assets Control Regulations, 31 C.F.R. Part 515, or (ii) designated under Sections 1(a), 1(b), 1(c) or 1(d) of Executive Order No. 13224 (Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or Support Terrorism), 66 Fed. Reg. 49079 (effective September 24, 2001, and published September 25, 2001) or similarly designated 

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under any related enabling legislation or any other similar Executive Orders (collectively, the “Executive Orders”).  Neither Buyer nor any of its principals or affiliates is (x) a person or entity with which Seller is prohibited from dealing or otherwise engaging in any transaction by any Anti-Terrorism Law, or that commits, threatens or conspires to commit or supports “terrorism” as defined in the Executive Orders, or (y) is directly or indirectly affiliated or associated with a person or entity listed in the preceding clause (x).  To the best knowledge of Buyer, neither Buyer nor any of its principals or affiliates, nor any brokers or other agents acting in any capacity in connection with the transactions contemplated herein (I) directly or indirectly deals in, or otherwise engages in any transaction relating to, any property or interests in property blocked pursuant to the Executive Orders, (II) directly or indirectly engages in any transaction in violation of any Laws relating to drug trafficking, money laundering or predicate crimes to money laundering or (III) engages in or conspires to engage in any transaction that evades or avoids, or has the purpose of evading or avoiding, or attempts to violate, any of the prohibitions set forth in any Anti-Terrorism Law.  As used herein, “Anti-Terrorism Law” means the OFAC Laws and Regulations, the Executive Orders and the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, Pub. L. No. 107-56, 115 Stat. 272 (2001), as amended.  
12.Risk of Loss.
(a)    Notice of Loss.  If, prior to the Closing Date, any portion of the Property suffers a Minor or Major Loss, Seller shall immediately notify Buyer of that fact, which notice shall include sufficient detail to apprise Buyer of the current status of the Property following such loss.  
(b)    Minor Loss.  Buyer’s obligations hereunder shall not be affected by the occurrence of a Minor Loss, provided that: (i) upon the Closing, there shall be a credit against the Consideration equal to the amount of any insurance proceeds or condemnation awards collected by Seller as a result of such Minor Loss (net of any amounts applied to restoration and reasonable expenses incurred by Seller in collecting such proceeds or awards), plus the amount of any insurance deductible; or (ii) insurance or condemnation proceeds available to Seller are sufficient to cover the cost of restoration and the insurance carrier has admitted liability for the payment of such costs.  If the proceeds or awards have not been collected as of the Closing, then Seller’s right, title and interest to such proceeds or awards shall be and are deemed to be assigned to Buyer at the Closing, together with a credit against the Consideration in the amount of any insurance deductible.  This provision shall not limit any of the Buyer’s repair obligations under the Lease.  If there is a Minor Loss and insurance coverage as set forth above is not available, Buyer shall have the same rights as if it was a Major Loss. 
(c)    Major Loss.  In the event of a Major Loss, Buyer may, at its option to be exercised by written notice to Seller within twenty (20) days of Seller’s notice to Buyer of the occurrence thereof, elect to either (i) terminate this Agreement, or (ii) consummate the acquisition of the Property for the full Consideration, subject to the following.  If Buyer 

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elects to proceed with the acquisition of the Property, then the Closing shall be postponed if necessary, to occur on the later of the then-scheduled Closing Date or the date which is ten (10) Business Days after Buyer makes such election and, upon the Closing, Buyer shall be given a credit against the Consideration equal to the amount of any insurance proceeds or condemnation awards collected by Seller as a result of such Major Loss (net of any amounts applied to restoration and reasonable expenses incurred by Seller in collecting such proceeds or awards), plus the amount of any insurance deductible.  If the proceeds or awards have not been collected as of the Closing, then Seller’s right, title and interest to such proceeds or awards shall be assigned to Buyer, and Seller will cooperate with Buyer as reasonably requested by Buyer in the collection of such proceeds or award.  If Buyer fails to give Seller notice within such twenty (20)-day period, then Buyer will be deemed to have elected to terminate this Agreement.  If the Agreement is not terminated, Buyer shall be responsible for performance by Buyer as “landlord” under the Lease, including any repair obligations of landlord, and nothing herein shall limit Buyer’s repair obligations or other obligations under the Lease.
13.Seller’s Continued Operation of the Property.
(a)    General.  Except as otherwise contemplated or permitted by this Agreement or approved by Buyer in writing, from the Effective Date to the Closing Date, Seller will operate, maintain and repair the Property in a prudent manner, in the ordinary course of business, on an arm’s-length basis and consistent with its past practices.  
(b)    Actions Requiring Buyer’s Consent.  Notwithstanding the above terms of this Section, from the Approval Date until the Closing Date, Seller shall not, without the prior written approval of Buyer, which approval shall not be unreasonably withheld or delayed, take any of the following actions except as required by law or existing contractual obligations of Seller:
(i)    Leases.  Terminate the Lease; or modify or waive any material term of the Lease; or
(ii)    Contracts.  Except for the Amended Declaration or as otherwise permitted under this Agreement, enter into any contract with respect to the Property that will survive the Closing and be binding on Buyer or the Property after the Closing.
(c)    Amended CC&Rs.  Seller has provided Buyer with a copy of the Amended and Restated Declaration of Covenants, Conditions and Restrictions And Grant of Reciprocal Easements (the “Amended Declaration”) as part of the Due Diligence Materials.  Seller shall have the right to record the Amended Declaration in the official records of the County.  
14.Non-Consummation of the Transaction.  If the transaction is not consummated on or before the Closing Date, the following provisions shall apply:
(a)    No Default.  If the purchase and sale of the Property under this Agreement is not consummated for a reason other than a default by one of the Parties, then (i) the Title Company 

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and each Party shall return to the depositor thereof the Earnest Money and all other funds and items which were deposited hereunder (except that Seller shall retain the Non-Refundable Payment); and (ii) Seller and Buyer shall each bear one-half of any Escrow cancellation charges, if any.  Any return of funds or other items by the Title Company or any Party as provided herein shall not relieve either Party of any liability it may have for its wrongful failure to close.  
(b)    Default by Seller.  If the transaction is not consummated as a result of a default by Seller, then Buyer, as its sole and only remedies hereunder, to the exclusion of all other potential remedies under this Agreement, at law or in equity, may either (i) terminate this Agreement by delivery of notice of termination to Seller, whereupon (A) the Earnest Money plus interest accrued thereon shall be immediately returned to Buyer, and (B) Seller shall pay to Buyer its Expense Reimbursement, in which case neither Party shall have any further rights or obligations hereunder other than those rights and obligations which expressly survive termination of this Agreement; or (ii) continue this Agreement pending Buyer’s action for specific performance, provided, however, that any such action for specific performance shall not include as an alternative remedy an action for damages and shall be filed and served by Buyer within thirty (30) days of the date which is the later of (x) the termination of this Agreement by Seller, or (y) the date on which Buyer has Actual Knowledge of the event or occurrence comprising the alleged default on the part of Seller, it being the intent of the Parties hereto that any failure of Buyer to meet the time deadline set for filing shall be deemed to be Buyer’s election to waive and relinquish any rights to enforce specific performance of this Agreement (and, in such case, subclause (i) above shall govern).  In the event Buyer files an action for specific performance in accordance with subparagraph (ii) above and Seller prevails in such action, then in addition to its obligations under Section 15(l) below, Buyer shall be obligated to pay to Seller an amount equal to the Specific Performance Amount as liquidated damages in order to compensate Seller for actual costs, damages and losses, as well as lost opportunity costs, suffered by Seller due to its inability to sell the Property to a third party pending the resolution of Buyer’s specific performance action.  Buyer acknowledges that the damages suffered by Seller due to a delay in selling the Property are difficult to determine and that the Specific Performance Amount has been agreed upon, after negotiation, as the parties’ reasonable estimate of such Seller’s damages.  Notwithstanding anything to the contrary in this Agreement, (i) in no event shall Seller be liable to Buyer in connection with any breach or default on the part of Seller under this Agreement for any incidental, special, exemplary, punitive or consequential damages, including, without limitation, loss of profits or revenue, interference with business operations, loss of tenants, lenders, investors, buyers, diminution in value of the Property, or inability to use the Property, and (ii) in no event or circumstance shall any of the members, partners, employees, representatives, officers, 

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directors, agents, advisors, property management company, affiliated or related entities of Seller or Seller’s property management company (collectively, the “Seller Parties”) have any personal liability under this Agreement.
Buyer’s Initials         
(c)    Default by Buyer.  If the Closing does not occur as a result of a default by Buyer, then (i) Buyer shall pay all escrow cancellation charges, (ii) to the extent it has not previously been delivered to Seller, the Title Company shall deliver the Earnest Money to Seller as its full and complete liquidated damages and its sole and exclusive remedy for Buyer’s default (provided that this provision shall not limit the Seller’s right to enforce Buyer’s obligations pursuant to Sections 4(c), 15(f) and 15(l), and to obtain monetary damages from Buyer pursuant to those provisions above and beyond any amounts collected pursuant to this liquidated damages provision), and (iii) this Agreement shall terminate.  If the transaction is not consummated because of a default by Buyer, the Earnest Money together with the interest accrued thereon shall be paid to and retained by Seller as liquidated damages.  THE PARTIES HAVE AGREED THAT SELLER’S ACTUAL DAMAGES, IN THE EVENT OF A DEFAULT BY BUYER, WOULD BE EXTREMELY DIFFICULT OR IMPRACTICABLE TO DETERMINE.  THEREFORE, BY PLACING THEIR INITIALS BELOW, THE PARTIES ACKNOWLEDGE THAT THE EARNEST MONEY HAS BEEN AGREED UPON, AFTER NEGOTIATION, AS THE PARTIES’ REASONABLE ESTIMATE OF SELLER’S DAMAGES (IN ADDITION TO ANY FEES AND COSTS TO WHICH SELLER IS ENTITLED UNDER SECTION 15(l)) AND AS SELLER’S EXCLUSIVE REMEDY AGAINST BUYER, AT LAW OR IN EQUITY, IN THE EVENT OF A DEFAULT UNDER THIS AGREEMENT ON THE PART OF BUYER; PROVIDED, HOWEVER, NOTHING HEREIN SHALL RELIEVE BUYER OF THE INDEMNITY OBLIGATIONS OF BUYER UNDER SECTIONS 4(c) AND 15(f), WHICH EXPRESSLY SURVIVE THE TERMINATION OF THIS AGREEMENT.  Notwithstanding anything to the contrary contained in this Section 14(c), in the event of (i) Buyer’s default under this Agreement, (ii) a termination of this Agreement by Buyer, or (iii) a termination of this Agreement by Seller as a result of a default on the part of Buyer, Seller shall have all remedies available at law or in equity if subsequent to or in connection with any of the foregoing events in subphrases (i), (ii) or (iii) Buyer or any Person related to or affiliated with Buyer asserts any claims or right to the Property that (x) delays or prevents Seller from having clear, indefeasible, and marketable title to the Property or (y) constitutes slander of title to the Property.  In all other events, Seller’s remedies shall be limited to those described in this Section 14(c) and Sections 4(c), 15(f) and 15(l) hereof.  If Closing is consummated, Seller shall have all remedies available at law or in equity in the event Buyer fails to perform any obligation of Buyer under this Agreement.  
INITIALS:  Seller _____   Buyer  _____
15.Miscellaneous

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(a)    Disclosure of Transaction.  Except as may be permitted in Section 15(o) below, prior to Closing neither Party shall publicly announce or discuss the execution of this Agreement or the transaction contemplated hereby without the prior written consent of the other Party, which shall not be unreasonably withheld.  Notwithstanding the foregoing, nothing herein shall limit or restrict any public announcement or notification which Seller or any Affiliate is required to make under the applicable provisions of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended and the rules and regulations adopted by the Securities and Exchange Commission thereunder.
(b)    Possession.  Possession of the Property shall be delivered to Buyer upon the Closing.
(c)    Force Majeure.  Seller’s corporate headquarters are located in San Mateo, California.  If during the term of this Agreement, there occurs a Force Majeure Event (a fire or other casualty, act of God, riot or other civil disturbance, or any other event out of the control of Seller that prevents Seller from having access to and use of its headquarters facility for the conduct of its operations), Seller shall have the right, exercisable by written notice to Buyer within five (5) Business Days of the date of the Force Majeure Event, to extend any period for Seller’s performance hereunder by a period of time equal to the time that Seller reasonably anticipates that it will be unable to use its headquarters, but not to exceed fourteen (14) days.  
(d)    Tax Protest.  If, as a result of any tax protest or otherwise, there is any refund or reduction of real property or other tax or assessment relating to the Property applicable to the period prior to Closing, Seller shall be entitled to receive or retain such refund or the benefit of such reduction, less equitable prorated costs of collection and subject to the rights of Tenant under the Lease as to any such refunds.  To the extent any such tax protest or proceeding is ongoing as of the Closing, Seller shall have the right, but not the obligation, to continue to pursue such protest or proceeding following the Closing, but only to the extent that it applies to the pre-Closing tax periods.    
(e)    Notices.  Any notice, consent or approval required or permitted to be given under this Agreement shall be in writing and shall be deemed to have been given upon (i) delivery of email on a Business Day between the hours of 9:00 a.m. and 5:00 p.m. local time at the location of the recipient’s mailing address (otherwise, the next following Business Day) (provided that such email contains in all uppercase letters the words “OFFICIAL NOTICE” in the subject line and generates no “out of office receipt” or other message that such delivery was ineffective or delayed), (ii) personal delivery, (iii) confirmed telecopy delivery on a Business Day between the hours of 9:00 a.m. and 5:00 p.m. local time at the location of the Property (otherwise, the next following Business Day), (iv) one (1) Business Day after being deposited with Federal Express, DHL Worldwide Express or another reliable overnight courier service prior to the specified delivery deadline for next-day service, specifying an address to which such courier makes overnight deliveries, or (v) two (2) Business Days after being deposited in the United States mail, registered or certified mail, postage prepaid, return receipt required, and addressed as indicated below, or such other address as either Party may from time to time specify in writing to the other.   A notice, consent or approval sent in the 

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above manner by counsel to a Party (whether or not identified below as a “copy to” recipient) shall constitute effective delivery of such notice, consent or approval and shall be binding on such Party as if sent by such Party.
	
		
	If to Buyer:
	If to Seller:

	 
	 

	Ginger Investors, LLC
18934 Carmel Crest Drive
Tarzana, CA 91357
Attention: Vic Vahe Vartanian
Fax No. 818-698-6419
Email:    vicv@gingerinvestors.com
	SRT Secured Topaz, LLC
c/o Glenborough, LLC
66 Bovet Road, Suite 100
San Mateo, CA 94402
Attention: Alan Shapiro
Fax No.: 650-343-9690
Email: alan.shapiro@glenborough.com

	 
	 

	with a copy to:
	with a copy to:

	Patrick C. McGarrigle, Esq.
McGarrigle Kenney & Zampiello, APC
9600 Topanga Canyon Blvd.
Suite 200
Chatsworth, CA 91311
Fax No. 818-998-3344
Email:    patrickm@mkzlaw.com

	SRT Secured Topaz, LLC
c/o Glenborough, LLC
66 Bovet Road, Suite 100
San Mateo, CA 94402
Attention:  G. Lee Burns, Jr.
Fax No.: 650-343-9690
Email: chip.burns@glenborough.com 

(f)    Brokers and Finder.  Seller has engaged Seller’s Broker to act as Seller’s representative in this transaction, and Seller has sole responsibility for the payment of any amounts due to Seller’s Broker as a result of this transaction, pursuant to a separate written agreement.  Buyer has engaged Buyer’s Broker as Buyer’s representative in this transaction.  Any commission or finder’s fee due to Buyer’s Broker shall be paid from the amount payable by Seller to Seller’s Broker, pursuant to separate written agreement between Buyer’s Broker and Seller’s Broker (the “Commission Split”).  Any commission or finder’s fee due to Buyer’s Broker in excess of the Commission Split and claimed through Buyer shall be the responsibility of Buyer.  Except as set forth in the preceding sentences of this paragraph, neither Party has had any contact or dealings regarding the Property, or any communication in connection with the subject matter of this transaction through any real estate broker or other person who can claim a right to a commission or finder’s fee in connection with the transactions contemplated in this Agreement.  In the event that any broker or finder perfects a claim for a commission or finder’s fee based upon any such contact, dealings or communication, the Party through whom the broker or finder makes its claim shall be responsible for said commission or fee and shall indemnify and hold harmless the other Party from and against all liabilities, losses, costs and expenses (including reasonable attorneys’ fees) arising in connection with such claim for a commission or finder’s fee.  The provisions of this subsection shall survive the Closing or the termination of this Agreement.
(g)    Successors and Assigns.  Subject to the following, this Agreement shall be binding upon, and inure to the benefit of, the Parties and their respective successors, heirs, administrators and assigns.  Buyer shall have the right, (i) with notice to Seller, but without 

Purchase and Sale Agreement
Page 27 of 32
941120.4

Seller’s consent, to assign this Agreement to an Affiliate of Buyer, and (ii) with notice to Seller, and subject to receipt of Seller’s prior written consent, at Seller’s sole and absolute discretion, to assign its right, title and interest in and to this Agreement to one or more assignees other than an Affiliate of Buyer, at any time before the Closing Date.  Any such assignee(s) shall execute and deliver to Seller a written assignment prepared by Seller and reasonably acceptable to Buyer, pursuant to which such assignee assumes all obligations of Buyer, without releasing Buyer from any obligation hereunder.  Seller shall have the right, with notice to Buyer but without Buyer’s consent, to transfer the Property to an Affiliate of Seller and in connection therewith, assign its interest in this Agreement.
(h)    Amendments.  Except as otherwise provided herein, this Agreement may be amended or modified only by a written instrument executed by Seller and Buyer.
(i)    Governing Law.  The substantive laws of the State of California, without reference to its conflict of law provisions, will govern the validity, construction, and enforcement of this Agreement and the Transaction Documents.    
(j)    Merger of Prior Agreements.  This Agreement and the Addenda, Exhibits and Schedules hereto constitute the entire agreement between the Parties and supersede all prior agreements and understandings between the Parties relating to the subject matter hereof.
(k)    Time for Performance.  Any time deadlines contained herein shall be calculated by reference to calendar days unless otherwise specifically noted.  For notice purposes hereunder, days shall be deemed to end at 5:00 P.M. California time.  In the event that any time periods for performance hereunder fall on a day that is not a Business Day, the date for performance shall be the next following Business Day.  
(l)    Enforcement.  If either Party fails to perform any of its obligations under this Agreement or if a dispute arises between the Parties concerning the meaning or interpretation of any provision of this Agreement, then the defaulting Party or the Party not prevailing in such dispute shall pay any and all costs and expenses incurred by the other Party on account of such default and/or in enforcing or establishing its rights hereunder, including, without limitation, arbitration or court costs and attorneys’ fees and disbursements.  Any such attorneys’ fees and other expenses incurred by either Party in enforcing a judgment in its favor under this Agreement shall be recoverable separately from and in addition to any other amount included in such judgment, and such attorneys’ fees obligation is intended to be severable from the other provisions of this Agreement and to survive and not be merged into any such judgment.
(m)    Time of the Essence.  THE TIME FRAMES AND DEADLINES FOR PERFORMANCE IN THIS AGREEMENT (INCLUDING, WITHOUT LIMITATION, THE TIME FRAMES AND DEADLINES SET FORTH IN SECTIONS 2, 3 AND 4 WITH RESPECT TO THE EARNEST MONEY, TITLE APPROVAL AND DILIGENCE REVIEW) HAVE BEEN NEGOTIATED BY THE PARTIES AND ARE A MATERIAL PART OF THE CONSIDERATION BETWEEN THE PARTIES.  THE PARTIES HERETO AGREE THAT TIME IS OF THE ESSENCE WITH RESPECT TO THIS AGREEMENT, 

Purchase and Sale Agreement
Page 28 of 32
941120.4

AND ALL OF THE TIME FRAMES AND DEADLINES SET FORTH IN THIS AGREEMENT.
INITIALS:  Seller _____   Buyer  _____
(n)    Severability.  If any provision of this Agreement, or the application thereof to any person, place, or circumstance, shall be held by a court of competent jurisdiction to be invalid, unenforceable or void, the remainder of this Agreement and such provisions as applied to other persons, places and circumstances shall remain in full force and effect.
(o)    Confidentiality.  Buyer and Seller shall each maintain as confidential any and all material or information about the other, or in the case of Buyer and its agents, employees, consultants and contractors, about the Property, and shall not disclose such information to any third party, except, in the case of information about the Property or the Seller, to Buyer’s investment bankers, investors, lender or prospective lenders, insurance and reinsurance firms, attorneys, environmental assessment and remediation service firms and consultants, as may be reasonably required for the consummation of this transaction and/or as required by law.
(p)    Counterparts.  This Agreement may be executed in counterparts or duplicate originals, each of which shall be deemed an original but all or which together shall constitute as one and the same instrument, and which shall be the official and governing version in the interpretation of this Agreement.  This Agreement may be executed and delivered by facsimile or electronic transmission and the Parties agree that such facsimile or electronic (e.g., pdf) execution and delivery shall have the same force and effect as delivery of an original document with original signatures, and that each Party may use such facsimile or electronic signatures as evidence of the execution and delivery of this Agreement by the Parties to the same extent that an original signature could be used.  
(q)    Joint and Several Liability.  If Buyer is composed of more than one Person, then each such Person comprising Buyer shall be jointly and severally liable for the obligations, covenants and agreements created by or arising out of this Agreement.
(r)    Addenda, Exhibits and Schedules.  All addenda, exhibits and schedules referred to herein are, unless otherwise indicated, incorporated herein by this reference as though set forth herein in full.  The Exhibits, Addenda and Schedules to this Agreement are:
Exhibit A – Deed
Exhibit B – Assignment and Assumption of Leases
Exhibit C – Bill of Sale
Exhibit D – Assignment and Assumption of Service Contracts, Warranties and other General Intangibles
Exhibit E – Certificate of Transferor Other than an Individual (FIRPTA Affidavit)
Exhibit F – Form of Tenant Estoppel 
Exhibit G – Form of Seller Title Affidavit

Purchase and Sale Agreement
Page 29 of 32
941120.4

Addendum I – Definitions
Addendum II – Seller’s Representations and Warranties

Schedule 1 – Due Diligence Materials
Schedule 2 – Description of Land
Schedule 3 – Assumed Service Contracts
Schedule 4 – Environmental Reports
Schedule 5 – Rent Roll
Schedule 6 – Exceptions to Seller Representations and Warranties
(s)    Construction.  Headings at the beginning of each section and subsection are solely for the convenience of the Parties and are not a part of the Agreement.  Whenever required by the context of this Agreement, the singular shall include the plural and the masculine shall include the feminine and vice versa.  This Agreement shall not be construed as if it had been prepared by one of the Parties, but rather as if both Parties had prepared the same. 
(t)    Tax Free Exchange.  As an accommodation  to Buyer, Seller agrees to cooperate with Buyer to accomplish an I.R.C. Section 1031 like kind tax deferred exchange, provided that the following terms and conditions are met; (i)  Buyer shall give Seller notice of any desired exchange not later than five (5) days prior to the Closing Date; (ii) Seller shall in no way be liable for any additional costs, fees and/or expenses relating to the exchange; (iii) if, for whatever reason, the Closing does not occur, Seller shall have no responsibility or liability to the third party involved in the exchange transaction, if any; and (iv)  Seller shall not be required to make any representations or warranties nor assume or incur any obligations or personal liability whatsoever in connection with the exchange transaction.  Buyer indemnifies and agrees to hold Seller and each Seller Related Party harmless from and against any and all causes, claims, demands, liabilities, costs and expenses, including attorneys’ fees, as a result of or in connection with any such exchange.  As an accommodation  to Seller, Buyer agrees to cooperate with Seller to accomplish an I.R.C. Section 1031 like kind tax deferred exchange, provided that the following terms and conditions are met; (i)  Seller shall give Buyer notice of any desired exchange not later than five (5) days prior to the Closing Date; (ii) Buyer shall in no way be liable for any additional costs, fees and/or expenses relating to the exchange; (iii) if, for whatever reason, the Closing does not occur, Buyer shall have no responsibility or liability to the third party involved in the exchange transaction, if any; and (iv)  Buyer shall not be required to make any representations or warranties nor assume or incur any obligations or personal liability  whatsoever in connection with the exchange transaction.  Seller indemnifies and agrees to hold Buyer harmless from and against any and all causes, claims, demands, liabilities, costs and expenses, including attorneys’ fees, as a result of or in connection with any such exchange.    
[Signatures on following page]

Purchase and Sale Agreement
Page 30 of 32
941120.4

IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first set forth above.

SELLER:

SRT SECURED TOPAZ, LLC, 
a Delaware limited liability company

By:                         
Name:                      
Title:                          

BUYER:

GINGER INVESTORS, LLC, 
a California limited liability company

By:                         
Name:                      
Title:                          

Purchase and Sale Agreement
Page 31 of 32
941120.4

First American Title Insurance Company
The undersigned executes this Agreement for the purpose of acknowledging its agreement to serve as escrow agent in accordance with the terms of this Agreement and to acknowledge receipt of a fully executed copy of the Agreement.
First American Title Insurance Company
By:    ________________________
Its:    ________________________

Purchase and Sale Agreement
Page 32 of 32
941120.4

EXHIBIT A

DEED

	
		
	First American Title  Company
Escrow No.          

RECORDING REQUESTED BY AND WHEN RECORDED RETURN TO:
            
            
            
Attention:              
MAIL TAX STATEMENTS TO:
             
             
                        

	 

	 
	 

APN Nos:                             (Space above this line for Recorder’s use)

GRANT DEED

Documentary Transfer Tax is $_____________ 
XX    Computed on the full value of the property conveyed; OR 
___    Computed on the full value less liens & encumbrances remaining at time of sale. 
___    unincorporated area, or          City of _______________

FOR VALUABLE CONSIDERATION, receipt of which is hereby acknowledged,

SRT SECURED TOPAZ, LLC, a Delaware limited liability company,

HEREBY GRANTS TO:
, a                 ,

the following real property situated in the City of _______________, County of _______________, State of California:

As set forth in Exhibit A, attached hereto and made a part hereof;

TOGETHER WITH all easements, rights, privileges and appurtenances thereto or in any way appertaining, and all improvements thereon, and

Purchase and Sale Agreement
Exhibit A – Deed
Page 1 of 3

938345.1

SUBJECT TO (1) nondelinquent taxes and assessments; and (2) all other covenants, conditions, and restrictions, reservations, rights, rights of way, easements, encumbrances, liens, in title matters of record or visible from an inspection of the property or which an accurate survey of the property would disclose. 

Executed as of __________________________, 2018.

GRANTOR:

SRT SECURED TOPAZ, LLC, 
a Delaware limited liability company

By:     [EXHIBIT – DO NOT SIGN]        
Name:                      
Title:                          

Purchase and Sale Agreement
Exhibit A – Deed
Page 2 of 3

941120.4

ACKNOWLEDGMENT

A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

State of                 )
)    ss.
County of                )

On                        , before me,                          (here insert name and title of officer), personally appeared                                     , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person (s), or the entity(ies) upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing is true and correct.

WITNESS my hand and official seal.

________________________________            [Seal]

Purchase and Sale Agreement
Exhibit A – Deed
Page 3 of 3

941120.4

EXHIBIT A
TO DEED

REAL PROPERTY DESCRIPTION

Purchase and Sale Agreement
Exhibit A – Deed 
Exhibit A – Real Property Description
941120.4

EXHIBIT B
ASSIGNMENT AND ASSUMPTION OF LEASES

THIS ASSIGNMENT AND ASSUMPTION OF LEASES (“Assignment”) dated as of __________, 2018, is entered into by and between SRT SECURED TOPAZ, LLC, 
a Delaware limited liability company (“Assignor”), and ____________________________ a _________________________ (“Assignee”).

W I T N E S S E T H:

WHEREAS, Assignor is the lessor under certain leases executed with respect to that certain real property commonly known as 14135 Main Street, Hesperia, CA (the “Property”), as more fully described in Exhibit A attached hereto, which leases are described in the Rent Roll attached hereto as Schedule 1 (the “Leases”); and

WHEREAS, Assignor has entered into that certain Purchase and Sale Agreement (the “Agreement”) by which title to the Property is being transferred to Assignee; and 

WHEREAS, Assignor desires to assign its interest as lessor in the Leases to Assignee, and Assignee desires to accept the assignment thereof;

NOW, THEREFORE, in consideration of the promises and conditions contained herein, the Parties hereby agree as follows:

1.Effective as of the Closing Date (as defined in the Agreement), Assignor hereby assigns to Assignee all of its right, title and interest in and to the Leases, and any guarantees related thereto, and Assignee hereby accepts such assignment and agrees to assume the obligations of Landlord under the Leases; provided, however, Assignor hereby indemnifies and holds Assignee harmless from any action, cause of action, loss, cost, claim or expense, including without limitation reasonable attorneys’ fees arising out of or related to a breach or default on the part of Assignor as Landlord under the Leases occurring before the date of this Assignment.  Assignee hereby indemnifies and holds Assignor harmless from any action, cause of action, loss, cost, claim or expense, including without limitation reasonable attorneys’ fees arising out of or related to a breach or default on the part of Assignee as Landlord under the Leases occurring on or after the date of this Assignment.  Notwithstanding the foregoing, if Assignee acquires the Property and (i) any Tenant Estoppel delivered to Assignee on or before the Closing identifies any event, occurrence or matter (whether or not characterized as a breach, default or failure to perform on the part of Assignor) as to which Assignor is or would be required to indemnify Assignee hereunder if such event, occurrence or matter would, with the passage of time or notice or both, constitute a breach, default or failure to perform under such Lease on the part of Assignor, or (ii) Assignee had knowledge as of or prior to the Closing of any event, occurrence or matter (whether or not characterized as a breach, default or failure to perform on the part of Assignor) as to which Assignor is or would be required to indemnify Assignee hereunder if such event, occurrence or matter would, with the passage of time 

Purchase and Sale Agreement
Exhibit B – Assignment and Assumption of Leases
Page 1 of 3
941120.4

or notice or both, constitute a breach, default or failure to perform under such Lease on the part of Assignor, then in either such instance Assignor shall not be responsible for, or obligated to indemnify or hold Assignee harmless from any such event, occurrence or matter or the resulting breach, default or failure to perform.
    
2.If either Party hereto fails to perform any of its obligations under this Assignment or if a dispute arises between the Parties hereto concerning the meaning or interpretation of any provision of this Assignment, then the defaulting Party or the Party not prevailing in such dispute shall pay any and all costs and expenses incurred by the other Party on account of such default and/or in enforcing or establishing its rights hereunder including, without limitation, court costs and attorneys’ fees and disbursements.  Any such attorneys’ fees and other expenses incurred by either Party in enforcing a judgment in its favor under this Assignment shall be recoverable separately from and in addition to any other amount included in such judgment and such attorneys’ fees obligation is intended to be severable from the other provisions of this Assignment and to survive and not be merged into any such judgment.

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

4.The substantive laws of the State of California, without reference to its conflict of law provisions, will govern the validity, construction, and enforcement of this Assignment.  

5.This Assignment may be executed in counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one and the same instrument. Capitalized terms used but not defined in this Assignment have the meaning given to such terms in the Agreement.

[Signatures on following page]

Purchase and Sale Agreement
Exhibit B – Assignment and Assumption of Leases
Page 2 of 3
941120.4

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

ASSIGNOR:

SRT SECURED TOPAZ, LLC, 
a Delaware limited liability company

By:     [EXHIBIT – DO NOT SIGN]        
Name:                      
Title:                          

ASSIGNEE:

,
a                         

By:    [EXHIBIT – DO NOT SIGN]        
Name:                         
Title:                         

Purchase and Sale Agreement
Exhibit B – Assignment and Assumption of Leases
Page 3 of 3
941120.4

EXHIBIT A
TO ASSIGNMENT AND ASSUMPTION OF LEASES

REAL PROPERTY DESCRIPTION

Purchase and Sale Agreement
Exhibit B – Assignment and Assumption of Leases 
Exhibit A – Real Property Description
941120.4

SCHEDULE 1
TO ASSIGNMENT AND ASSUMPTION OF LEASES

RENT ROLL

Purchase and Sale Agreement
Exhibit B – Assignment and Assumption of Leases
Schedule 1 – Rent Roll
941120.4

EXHIBIT C

BILL OF SALE

For good and valuable consideration the receipt of which is hereby acknowledged, SRT SECURED TOPAZ, LLC, a Delaware limited liability company (“Transferor”), does hereby sell, transfer, and convey to _________________________, a _________________ (“Transferee”) all personal property owned by Transferor and located on or in or used in connection with the Real Property located at 14135 Main Street, Hesperia, CA, including, without limitation, those items described in Schedule 1 attached hereto (collectively, the “Personal Property”), pursuant to that certain Purchase and Sale Agreement between Transferor and Transferee for the purchase and sale of the Real Property (the “Agreement”).  Transferor is conveying the Personal Property to Transferee free and clear of free of any lien or encumbrance thereon except as previously disclosed to and accepted by Transferee.  Capitalized terms used but not defined in this Bill of Sale have the meaning given to such terms in the Agreement.

Transferor makes no representation or warranty regarding the condition, merchantability, fitness or usefulness of the Personal Property, and Transferee acknowledges and agrees that it is acquiring the Personal Property in its AS-IS, WHERE-IS, WITH ALL FAULTS CONDITION, WITHOUT WARRANTY, EITHER EXPRESS OR IMPLIED, except that all of the Personal Property will be free of all liens and encumbrances.  

This Bill of Sale shall be binding upon and inure to the benefit of the successors and assigns of Transferor and Transferee. 

The substantive laws of the State of California, without reference to its conflict of law provisions, will govern the validity, construction, and enforcement of this Bill of Sale.  

This Bill of Sale may be executed in one or more counterparts, each of which shall be deemed an original and all of which when taken together shall constitute one and the same instrument.

Dated: ____________________, 2018.

[Signatures on following page]

Purchase and Sale Agreement
Exhibit C – Bill of Sale
Page 1 of 2
941120.4

TRANSFEROR:

SRT SECURED TOPAZ, LLC, 
a Delaware limited liability company

By:     [EXHIBIT – DO NOT SIGN]        
Name:                      
Title:                          

TRANSFEREE:

, 
a                         

By:    [EXHIBIT – DO NOT SIGN]        
Name:                         
Title:                         

Purchase and Sale Agreement
Exhibit C – Bill of Sale
Page 2 of 2
941120.4

SCHEDULE 1 
TO BILL OF SALE

PERSONAL PROPERTY

Purchase and Sale Agreement
Exhibit C – Bill of Sale
Schedule 1 – Personal Property
941120.4

EXHIBIT D

ASSIGNMENT AND ASSUMPTION OF WARRANTIES 
AND OTHER GENERAL INTANGIBLES

This Assignment and Assumption of Warranties and Other General Intangibles (“Assignment”) is made and entered into as of ________, 2018, by SRT SECURED TOPAZ, LLC, a Delaware limited liability company (“Assignor”), to _________________________, a ________________ (“Assignee”), pursuant to that certain Purchase and Sale Agreement (the “Agreement”) between Assignor and Assignee relating to the real property owned by Assignor and located at 14135 Main Street, Hesperia, CA.  Capitalized terms used but not defined in this Assignment have the meaning given to such terms in the Agreement.

1.    For good and valuable consideration, the receipt of which is hereby acknowledged, effective as of the Closing Date (as defined in the Agreement), Assignor hereby assigns and transfers unto Assignee the following:

(a)    a non-exclusive right to and interest in all warranties and guaranties made by or received from any third party with respect to any building, building component, structure, fixture, machinery, equipment, or material situated on, contained in any building or other improvement situated on that certain real property described in Exhibit A attached hereto including, without limitation, those warranties and guaranties listed in Schedule 1 attached hereto (collectively, “Warranties”), but only to the extent such Warranties apply specifically to the improvements on the Real Property; provided however, that to the extent there are any third party costs, expenses or fees in connection with the assignment of any Warranties, including, without limitation, reliance fees or transfer fees, Seller shall not be obligated to assign such Warranties to Buyer unless Buyer pays all such costs,  expenses and fees.  

(b)    Assignor’s right, title and interest in and to any General Intangibles (as defined in the Agreement), but only if and to the extent such General Intangibles relate to the Real Property and not to any other property.

Assignor and Assignee further hereby agree and covenant as follows:

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

Purchase and Sale Agreement
Exhibit D – Assignment and Assumption of Warranties and Other General Intangibles  
Page 1 of 3
941120.4

3.    Assignor hereby covenants that Assignor will, at any time and from time to time, upon written request therefor, execute and deliver to Assignee any new or confirmatory instruments which Assignee may reasonably request in order to fully assign, transfer to and vest in Assignee, and to protect Assignee’s right, title and interest in and to, any of the items assigned herein or to otherwise realize upon or enjoy such rights in and to those items.  

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

5.    The substantive laws of the State of California, without reference to its conflict of law provisions, will govern the validity, construction, and enforcement of this Assignment.  

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

[Signatures on following page]

Purchase and Sale Agreement
Exhibit D – Assignment and Assumption of Warranties and Other General Intangibles  
Page 2 of 3
941120.4

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

ASSIGNOR:

SRT SECURED TOPAZ, LLC, 
a Delaware limited liability company

By:     [EXHIBIT – DO NOT SIGN]        
Name:                      
Title:                          

ASSIGNEE:

, 
a                         

By:    [EXHIBIT – DO NOT SIGN]        
Name:                         
Title:                         

Purchase and Sale Agreement
Exhibit D – Assignment and Assumption of Warranties and Other General Intangibles  
Page 3 of 3
 
941120.4

EXHIBIT A
TO
ASSIGNMENT AND ASSUMPTION OF SERVICE CONTRACTS, WARRANTIES 
AND OTHER GENERAL INTANGIBLES

REAL PROPERTY DESCRIPTION

Purchase and Sale Agreement
Exhibit D – Assignment and Assumption of Warranties, Service Contracts and Other General Intangibles  
Exhibit A – Real Property Description
941120.4

SCHEDULE 1
TO
ASSIGNMENT AND ASSUMPTION OF WARRANTIES, 
SERVICE CONTRACTS AND OTHER GENERAL INTANGIBLES

WARRANTIES AND GUARANTIES

Purchase and Sale Agreement
Exhibit D – Assignment and Assumption of Warranties and Other General Intangibles  
Schedule 1 – Warranties and Guaranties
941120.4

SCHEDULE 2
TO
ASSIGNMENT AND ASSUMPTION OF WARRANTIES, 
SERVICE CONTRACTS AND OTHER GENERAL INTANGIBLES

SERVICE CONTRACTS

Purchase and Sale Agreement
Exhibit D – Assignment and Assumption of Warranties and other General Intangibles  
Schedule 2 – Service Contracts
 
941120.4

EXHIBIT E

CERTIFICATE OF TRANSFEROR
OTHER THAN AN INDIVIDUAL
(FIRPTA AFFIDAVIT)

Section 1445 of the Internal Revenue Code provides that a transferee of a U.S. real property interest must withhold tax if the transferor is a foreign person.  To inform _______________________________, a __________________________, the transferee of certain real property located at 14135 Main Street, Hesperia, CA, that withholding of tax is not required upon the disposition of such U.S. real property interest by SRT SECURED TOPAZ, LLC, a Delaware limited liability company and wholly owned subsidiary of STRATEGIC REALTY OPERATING PARTNERSHIP, L.P.,  a Delaware limited partnership (“Transferor”), the undersigned hereby certifies the following on behalf of Transferor:

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

2.    Transferor is not a disregarded entity as defined in Income Tax Regulations §1.1445-2(b)(2)(iii);

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

		
	4.
	Transferor’s office address is:    c/o Glenborough, LLC

66 Bovet Road, Suite 100
San Mateo, CA 94402

Transferor understands that this certification may be disclosed to the Internal Revenue Service by Transferee and that any false statement contained herein could be punished by fine, imprisonment, or both.

Under penalty of perjury, I declare that I have examined this certificate and to the best of my knowledge and belief it is true, correct and complete, and I further declare that I have authority to sign this document on behalf of Transferor.

Dated: ______________________, 2018.

[EXHIBIT – DO NOT SIGN]        
                                                    
on behalf of:

__________________________, 
a _________________________

Purchase and Sale Agreement
Exhibit E – Certificate of Transferor Other than an Individual (FIRPTA Affidavit)
941120.4

EXHIBIT F

FORM OF TENANT ESTOPPEL

ESTOPPEL CERTIFICATE
THIS ESTOPPEL CERTIFICATE is made as of                     , by Total Renal Care, Inc. in connection with that  certain Lease Agreement dated June 25, 2007 and First Amendment to Freestanding Building Lease dated August 1, 2017 by and between TOTAL RENAL  CARE, INC., a California  corporation, as Tenant and SRT SECURED TOPAZ, LLC, a Delaware limited liability company, as successor-in-interest  to Hesperia- Main Street, LLC, as Landlord (the "Lease") for the premises located at 14135 Main Street, Hesperia, California 92345 (the "Premises").
Tenant hereby certifies to the best of Tenant's knowledge to Landlord and ______________________________, as follows:
1.    The Lease is now in full force and effect and has not been amended, modified, or assigned except as noted above. There are no other oral or written agreements or understandings between Landlord and Tenant relating to the Premises. As of the date hereof, the Lease is in full force and effect.
2.    To Tenant's knowledge and belief, the information set forth below is true and correct as of the date hereof:
(a)Approximate square footage of the Premises: 7,500 rentable square feet.
(a)Monthly installment of Rent as of the date hereof: $19,571.60.
(b)Commencement Date: August 31, 2008.
(c)Termination date: August 31, 2028.
(d)Security deposit:   None.
(e)Prepaid rent in the amount of:  None.
(f)Renewal Options: Three periods of five years each.
3.    To the best of Tenant's actual knowledge and belief, without inquiry or investigation, there exists no default, or breach on the part of either Tenant or Landlord under the Lease.
4.    There are no credits, defenses, or offsets to the enforcement of the Lease, except as set forth in the Lease.
5.    No rent has been or will be paid more than 30 days in advance.

Purchase and Sale Agreement
Exhibit F – Form of Tenant Estoppel
Page 1 of 2
941120.4

(g)

6.    All legal notices to Tenant shall be sent to: 
Tenant:     Total Renal Care, Inc.
c/o DaVita HealthCare Partners Inc. 
Attention: Real Estate Legal
2000 16th Street
Denver, CO 80202
With a copy to:     relegal@davita.com
Subject: Facility #2278, Hesperia, CA
IN WITNESS WHEREOF, Tenant has executed this Estoppel Certificate as of the date first above written.

TENANT:

TOTAL RENAL CARE, INC.,
a California corporation

By:                         
Name:    Amy DeColibus
Title:    Assistant General Counsel

Purchase and Sale Agreement
Exhibit F – Form of Tenant Estoppel
Page 2 of 2
941120.4

EXHIBIT G

FORM OF SELLER’S TITLE AFFIDAVIT 

Date:  _________, 201_    
Commitment Number:  NCS-___________ (the “Commitment”)

To the actual knowledge of SRT SECURED TOPAZ, LLC, a Delaware limited liability company (“Company”), the following is hereby certified to First American Title Insurance Company (“Title Company”) with respect to the land described in the above Commitment.

		
	1.
	The undersigned is the _________________ of the Company. 

		
	2.
	There have been no:

		
	a.
	Bankruptcy proceedings involving the Company or dissolution proceeding involving the Company during the time the Company had any interest in the premises described in Exhibit A (“Land”), except as follows: ___________________.

		
	b.
	Tax liens filed against the Company, except as follows:                 ;

		
	c.
	Unsatisfied judgments of record against the Company, nor any actions pending in any courts, which affect the Land, except as follows:             .

		
	3.
	There has/have been no labor or materials furnished to the Land at the request of the Company in the past 180 days and there are no plans for any labor or materials to be furnished to the Land at the request of the Company, except as follows:                  .

		
	4.
	There are no unrecorded contracts, leases, easements or other agreements or interest relating to the Land except the leases shown on the rent roll attached hereto as Exhibit B, which the undersigned certifies is a true and correct copy of the Company’s rent roll, except as follows:                      .

		
	5.
	There are no persons in possession of any portion of the Land other than pursuant to a recorded document except tenants pursuant to the leases shown on the rent roll attached hereto as Exhibit B, except as follows:                  .

		
	6.
	There are no encroachments or boundary line questions affecting the Land of which the undersigned has knowledge, other than as shown on any survey delivered to the Title Company for purposes of issuance of an ALTA Owner’s Policy, except as follows:                  .

Affiant makes this Affidavit for the purpose of inducing First American Title Insurance Company to issue its policy of title insurance to ___________________________, a ____________________________ (“Purchaser”) and Purchaser’s lender, ________________________, a __________________ (“Lender”).  This Affidavit may be relied on solely by First American Title Insurance Company in connection with the issuance of title policies to Purchaser and Lender, and does not constitute or contain representations, warranties or statements on which Purchaser or Lender may rely.

Purchase and Sale Agreement
Exhibit G – Form of Seller’s Title Affidavit
Page 1 of 2
941120.4

The term “Actual Knowledge” of the undersigned, or references to the “knowledge” of the undersigned means the current, actual knowledge of _______________ as of the date of this affidavit, upon due inquiry but without imputation of matters of record or constructive knowledge.  The undersigned represents that _________________ is the person most likely to have current, actual knowledge of the matters described in this affidavit.

By:                      
Name:                    
Title:                      [of _____________________, a _________________, Manager/Member of the Company]

Purchase and Sale Agreement
Exhibit G – Form of Seller’s Title Affidavit
Page 2 of 2
941120.4

Exhibit A
Land Description
Real property in the City of _______________, County of _____________, State of ___________________, described as follows:

Purchase and Sale Agreement
Exhibit H – Form of Seller’s Title Affidavit
Exhibit A – Land Description
941120.4

Exhibit B
Rent Roll
(See following pages)

Purchase and Sale Agreement
Exhibit G – Form of Seller’s Title Affidavit
Exhibit B – Rent Roll
941120.4

ADDENDUM I

DEFINITIONS
Terms used in this Agreement shall have the meanings set forth below:
		
	1.
	2018 Stub Reconciliation.  As defined in Section 7(d)(v) of the Agreement. 

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

		
	3.
	Actual Knowledge of Seller (or Seller’s Actual Knowledge.)  The knowledge of any Responsible Individual of Seller, without duty of inquiry; provided that so qualifying Seller’s knowledge shall in no event give rise to any personal liability on the part of the Responsible Individual, on account of any breach of any representation and warranty of Seller herein.  Actual Knowledge shall not include constructive knowledge, imputed knowledge, or knowledge Seller or such Responsible Individual do not have but could have obtained through further investigation or inquiry.

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

		
	5.
	Affiliate.  Any Person that, directly or indirectly, through one or more intermediaries, controls or is controlled by or is under common control with another Person, or any successor to a Person owned by the Persons controlling the predecessor to such successor.  An affiliate of a Person includes any officer, director, managing member, member or general partner, and any record or beneficial owner of more than 10% of any class of ownership interests in such Person.  

		
	6.
	Agreement.  This Agreement between Seller and Buyer, including all Addenda, Schedules and Exhibits attached hereto and incorporated herein by reference.

		
	7.
	Approval Date.  The Business Day on or prior to the end of the Due Diligence Period on which Buyer delivers its Approval Notice to Seller.

		
	8.
	Approval Notice.  Buyer’s notice delivered to Seller (if at all) under Section 4(l) of the Agreement.  

Purchase and Sale Agreement
Addendum I – Definitions 
Page 1 of 7
941120.4

		
	9.
	Assignment of Leases.  An Assignment and Assumption of Leases in the form attached to this Agreement as Exhibit B.  

		
	10.
	Assignment of General Intangibles.  An Assignment and Assumption of Warranties and Other General Intangibles in the form attached to this Agreement as Exhibit D.

		
	11.
	Bill of Sale.  A Bill of Sale in the form attached to this Agreement as Exhibit C.

		
	12.
	Business Day.  Any day other than a Saturday, Sunday or holiday on which Bank of America, N.A., located in San Francisco, California, is authorized or required by law to close for business.  

		
	13.
	Buyer.  The “Buyer” in the preamble to this Agreement, or its permitted assignee.

		
	14.
	Buyer’s Agents.  The employees, agents, contractors, consultants, officers, directors, representatives, managers and members of Buyer or its Affiliates, and such other Persons as are acting under the direction of, or on behalf of, Buyer or any Affiliate of Buyer.  

		
	15.
	Buyer’s Broker.  CBRE, Inc. 

		
	16.
	Buyer Closing Conditions.  Conditions precedent to Buyer’s obligation to consummate this transaction, as set forth in Section 5(a).

		
	17.
	Cash.  Immediately available funds to be paid by Buyer at the Closing, as provided in the Section entitled “Consideration”.

		
	18.
	Closing.  The delivery of the Deed and the other documents required to be delivered hereunder and the payment of the Consideration.

		
	19.
	Closing Date.  Forty-five (45) days after delivery of an Approval Notice, or earlier, upon mutual agreement of the Parties.   

		
	20.
	Consideration.  The total consideration to be paid by Buyer to Seller as described in the Section entitled “Consideration.” 

		
	21.
	Contracts.  The service contracts, construction contracts for work in progress, any warranties thereunder, management contracts, unrecorded reciprocal easement agreements, operating agreements, maintenance agreements, franchise agreements and other similar agreements relating to the Property.

		
	22.
	Creditors’ Rights Laws.  All bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the rights of creditors generally, as well as general equitable principles whether or not the enforcement thereof is considered to be a proceeding at law or in equity.

		
	23.
	Day.  The term “day” used herein and not capitalized means a calendar day.  

Purchase and Sale Agreement
Addendum I – Definitions 
Page 2 of 7
941120.4

		
	24.
	Deed.  A deed in the form attached to this Agreement as Exhibit A.

		
	25.
	Due Diligence Materials.  The materials described in Schedule 1 to this Agreement.

		
	26.
	Due Diligence Period.  A period of time commencing on the Effective Date and ending at 5:00 p.m., California time, on June 7, 2018. 

		
	27.
	Earnest Money.  The aggregate of the Initial Earnest Money Deposit and the Remaining Earnest Money Deposit.  

		
	28.
	Effective Date.  The date set forth in the preamble to this Agreement, which is the date upon which this Agreement a copy of this Agreement executed by both Seller and Buyer has been exchanged by email transmittal of a signed, pdf copy.

		
	29.
	Environmental Laws.  All federal, state, local or administrative agency ordinances, laws, rules, regulations, orders or requirements relating to Hazardous Materials.

		
	30.
	Environmental Reports.  All environmental reports and investigations relating to the Property which are available to Seller, which are listed on Schedule 4 to this Agreement.

		
	31.
	Existing Lender.  Keybank, N.A., as lead agent.

		
	32.
	Expenses.  All operating expenses normal to the operation and maintenance of the Property, including without limitation: Property Taxes; current installments of any improvement bonds or assessments which are a lien on the Property or which are pending and may become a lien on the Property; water, sewer and utility charges; amounts payable under any Contract for any period in which the Closing occurs; and permits, licenses and inspection fees.  Expenses shall not include expenses which are of a capital nature.

		
	33.
	Expense Reimbursement.  That amount necessary to reimburse Buyer for all of its out-of-pocket, third-party costs and expenses related to the transactions contemplated by this Agreement, including, without limitation, to consultants and for third‐party reports, for legal fees incurred in connection with negotiating and entering into a letter of intent, non-disclosure agreement, or other preliminary document, and this Agreement, up to a maximum, in the aggregate, of Thirty Thousand and No/100ths Dollars ($30,000).

		
	34.
	Fixed Rents.  The fixed periodic payments under any Lease.

		
	35.
	General Intangibles.  All general intangibles relating solely to the design, development, operation, management and use of the Real Property, including (i) certificates of occupancy, zoning variances, building, use or other permits, approvals, authorizations, licenses and consents obtained from any governmental authority or other person for the development, use, operation or management of the Real Property; (ii) engineering reports, architectural drawings, plans and specifications relating specifically to the Real Property; and (iii) Seller’s right, title and interest in and to any and all of the following to the extent related to the Real Property, and assignable: trademarks, service marks, logos or other source and business identifiers, trademark registration and applications for registration used at or relating to the 

Purchase and Sale Agreement
Addendum I – Definitions 
Page 3 of 7
941120.4

Real Property and any written agreement granting to Seller any right to use any trademark or trademark registration at or in connection with the Real Property.  For the avoidance of doubt, the general intangibles do not include, and expressly exclude, any and all general intangibles to the extent they relate in whole or in part to properties other than the Real Property.     
		
	36.
	Hazardous Materials.  Any substance which is (a) designated, defined, classified or regulated as a hazardous substance, hazardous material, hazardous waste, toxic substance, pollutant or contaminant under any federal or state law or regulation, (b) a petroleum hydrocarbon, including crude oil or any fraction thereof and all petroleum products, (c) PCBs, (d) asbestos or asbestos-containing products, (e) a flammable explosive, (f) an infectious material, (g) a radioactive material, (h) a carcinogenic, or (i) a reproductive toxicant.

		
	37.
	Improvements.  All buildings, parking lots, parking garages, signs, walks and walkways, fixtures and equipment and all other improvements located at or on or affixed to the Land to the full extent that such items are owned by Seller and constitute realty under the laws of the state in which the Land is located.

		
	38.
	Initial Earnest Money Deposit.  The initial earnest money deposit(s) paid by Buyer pursuant to the Section entitled “Consideration,” in the amount(s) of One Hundred Thousand and No/100ths Dollars ($100,000.00).

		
	39.
	Land.  The land described in Schedule 2 to this Agreement, together with all appurtenances thereto, including without limitation easements and mineral and water rights.

		
	40.
	Laws.  All Environmental Laws, zoning and land use laws, and other local, state and federal laws and regulations applicable to the Property, the Parties, and/or the transactions contemplated by this Agreement.

		
	41.
	Lease.  The lease for the Tenant listed in the Rent Roll.

		
	42.
	Leasing Commission.  Commissions payable to brokers or other Persons in connection with leasing space in the Property and for which the landlord is obligated under any Lease, or for which Seller is obligated under any agreement made by Seller with any such Person.

		
	43.
	Major Loss.  Any damage or destruction to, or condemnation of, any Real Property as to which the cost to repair, or the value of the portion taken, as the case may be, exceeds Three Hundred Fifty Thousand and No/100ths Dollars ($350,000.00).

		
	44.
	Material Damage Ceiling.  Damage in the aggregate of Four Hundred Thousand and No/100ths Dollars ($400,000.00) suffered by Buyer as a result of any inaccuracy or breach of any representation or warranty or covenant (on a cumulative basis and not per occurrence) by Seller hereunder.

		
	45.
	Material Damage Floor.  Damage in excess of Forty Thousand and No/100ths Dollars ($40,000.00) suffered by Buyer as a result of any inaccuracy or breach of any representation or warranty or covenant (on a cumulative basis and not per occurrence) by Seller hereunder.

Purchase and Sale Agreement
Addendum I – Definitions 
Page 4 of 7
941120.4

		
	46.
	Minor Loss.  Damage or destruction to, or condemnation of, any Real Property that is not a Major Loss.

		
	47.
	Monetary Liens.  As defined in the Section entitled “Approval of Title.”  

		
	48.
	New Exception.  An exception to title to the Real Property that is not (i) included in or referenced in any preliminary report delivered to Buyer prior to the Approval Date, or in any exception document delivered to Buyer by the Title Company prior to the Approval Date, (ii) disclosed to Buyer in any of the Due Diligence Materials, (iii) shown on or referenced in the Survey, (iv) caused by Buyer or any of Buyer’s Agents, or (v) previously approved in writing by Buyer or any of Buyer’s Agents.  

		
	49.
	Non-Refundable Payment.  See Section 3(b).  

		
	50.
	Parcel Map.  That certain Final Parcel Map No. 19858 recorded in the official records of the County as document no. 2018-0146759, in Book 250, Pages 37-38, on April 24, 2018.

		
	51.
	Parties.  Buyer and Seller.

		
	52.
	Permitted Exceptions.  The Lease and the exceptions to title approved by Buyer during the Due Diligence Period, pursuant to the title review procedure set forth in the Agreement.

		
	53.
	Person.  An individual, partnership, corporation, business trust, joint stock company, limited liability company, trust, unincorporated association, joint venture or governmental authority.

		
	54.
	Personal Property.  All of Seller’s right, title and interest in and to the personal property and any interest therein owned by Seller or held directly for the benefit of Seller, if any, located on the Real Property and used in the operation or maintenance of the Real Property.

		
	55.
	Physical Testing.  Any physically intrusive, invasive or destructive testing or investigation (however characterized) of, on or under the Property or any portion or part thereof, for the presence or absence of Hazardous Materials, or for other purposes, including, without limitation, by (i) taking, sampling or testing groundwater or soils, (ii) air quality sampling or testing, or (iii) probing, cutting, penetrating, removing or otherwise disturbing any interior or exterior feature of the Land or Improvements in order to sample, test, observe or monitor normally inaccessible areas, components, features or systems.

		
	56.
	Property.  The Real Property, the Lease, the Personal Property, the General Intangibles, and the Contracts (excluding Contracts to be terminated by Seller pursuant to this Agreement).

		
	57.
	Property Taxes.  As defined in Section 7(c)(ii)(c), entitled “Property Taxes.”  

		
	58.
	Real Property.  The Land and Improvements.

		
	59.
	Remaining Earnest Money Deposit.  The additional earnest money deposit(s) paid by Buyer on or after the Approval Date pursuant to the Section entitled “Consideration”, in the amount of One Hundred Fifty Thousand and No/100ths Dollars ($150,000.00)

Purchase and Sale Agreement
Addendum I – Definitions 
Page 5 of 7
941120.4

		
	60.
	Rent Roll.  The list of each of the tenants under leases as of the date of this Agreement, attached to this Agreement as Schedule 5.

		
	61.
	Rents.  Fixed Rents and Additional Rents. 

		
	62.
	Responsible Individuals.  With respect to Buyer:  Vic Vahe Vartanian; and with respect to Seller: Alan Shapiro.

		
	63.
	Seller.  The “Seller” in the preamble to this Agreement.

		
	64.
	Seller Related Party.  Seller, any Affiliate of Seller, and any of its or their respective shareholders, partners, members, managers, officers, directors, employees, contractors, agents, attorneys or other representatives of Seller.

		
	65.
	Seller’s Broker.  CBRE, Inc. 

		
	66.
	Seller Closing Conditions.  Conditions precedent to Seller’s obligation to consummate this transaction, as set forth in Section 5(b).

		
	67.
	Service Contracts.  All Contracts involving ongoing services and periodic payment therefor, as distinguished from franchise agreements, easements, guarantees, warranties and the like.

		
	68.
	Specific Performance Amount.  Fifty Thousand and No/100ths Dollars ($50,000.00).

		
	69.
	Survey.  That certain Land Title Survey of the Property delivered to Buyer with the Due Diligence Materials.  

		
	70.
	Tenant.  The tenant listed on the Rent Roll.

		
	71.
	Tenant Estoppel.  An estoppel certificates in the form attached to this Agreement as Exhibit F (or on such other form as may be prescribed in the Tenant Lease), to be provided by Seller as provided in the Section entitled “Tenant Estoppel.”  

		
	72.
	Tenant Improvement Allowances.  Tenant improvement allowances and/or tenant improvement costs which the landlord is responsible to pay to Tenant or reimburse to Tenant under its Lease.

		
	73.
	Title Company.  First American Title Insurance Company – National Commercial Services, at its office located at 2755 Campus Drive, Suite 125, San Mateo, CA 94403; Attention: Erwin J. Broekhuis, Commercial Escrow Officer, (650) 356-1729 (direct), email ebroekhuis@firstam.com.

		
	74.
	Title Policy.  An owner’s standard coverage ALTA title policy, issued by Title Company in the amount of the Consideration, showing title vested in Buyer subject only to the Permitted Exceptions.

Purchase and Sale Agreement
Addendum I – Definitions 
Page 6 of 7
941120.4

		
	75.
	Transaction Documents.  The Deed, Bill of Sale, Assignment of General Intangibles, Assignment of Leases, and any and all other agreements entered into by the Parties in connection with the Closing. 

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Addendum I – Definitions 
Page 7 of 7
941120.4

ADDENDUM II

SELLER’S REPRESENTATIONS AND WARRANTIES
Seller hereby represents and warrants to Buyer as follows:
A.Organization and Authorization
1.    Seller is a limited liability company duly organized, validly existing and in good standing under the laws of the State of Delaware, and is qualified to do business in the state of where the Property is located.  
2.    Seller has full power and authority to execute and deliver this Agreement and to perform all of the terms and conditions hereof to be performed by Seller and to consummate the transactions contemplated hereby.  This Agreement and all documents executed by Seller which are to be delivered to Buyer at Closing have been duly executed and delivered by Seller and are or at the time of Closing will be the legal, valid and binding obligation of Seller and is enforceable against Seller in accordance with its terms, except as the enforcement thereof may be limited by applicable Creditors’ Rights Laws.  Seller is not presently subject to any bankruptcy, insolvency, reorganization, moratorium, or similar proceeding.
3.    The individuals and entities executing this Agreement and the instruments referenced herein on behalf of Seller and its constituent entities, if any, have the legal power, right and actual authority to bind Seller to the terms and conditions hereof and thereof.
4.    Neither the execution and delivery of this Agreement, the consummation of the transactions contemplated by this Agreement, nor the compliance with the terms and conditions hereof will violate or conflict, in any material respect, with any provision of Seller’s organizational documents or to Seller’s Actual Knowledge any statute, regulation or rule, or, to Seller’s Actual Knowledge, any injunction, judgment, order, decree, ruling, charge or other restrictions of any government, governmental agency or court to which Seller is subject, and which violation or conflict would have a material adverse effect on Seller.  Seller is not a party to any contract or subject to any other legal restriction that would prevent fulfillment by Seller of all of the terms and conditions of this Agreement or compliance with any of the obligations under it.
B.Title Matters
1.    Possession; No Transfers.  There are no adverse or other parties in possession of the Property, or any part thereof, with the consent of Seller except Seller and Tenant.  Seller has not granted to any Person any license, easement, lease, or other right relating to the use or possession of the Property or any part thereof, except Tenant or as set forth in the matters shown of record.

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Page 1 of 4
 
941120.4

C.Property Condition, Use and Compliance
1.    Compliance with Laws.  Except as set forth on Schedule 6 to this Agreement, to Seller’s Actual Knowledge, Seller has not received written notice that the use or operation of the Property is in violation of any applicable Laws.
2.    No Regulatory Proceedings.  Except as set forth on Schedule 6 to this Agreement, to Seller’s Actual Knowledge, Seller has not received any written notice of any condemnation, environmental, zoning or other land-use regulation proceedings that have been instituted, or are planned to be instituted, which directly identify any of the Property, nor has Seller received written notice of any special assessment proceedings affecting any of the Property.  Seller shall notify Buyer promptly of any such proceedings of which any Seller becomes aware prior to Closing.
3.    Environmental Matters. To the Actual Knowledge of Seller and except as set forth in the Due Diligence Materials, there are no Hazardous Materials on or under the Property in violation of Environmental Laws or which would require remediation or mitigation under Environmental Laws. 
D.The Lease
1.    Rent Roll.  The Rent Roll attached hereto completely and accurately reflects the material terms and conditions of the Lease in all material respects as of its date.  Except as disclosed on the Rent Roll, to the Actual Knowledge of Seller, there are no other tenants at the Property with Seller’s consent, and no Rents under the Lease have been collected in advance of the current month.  The Rent Roll shall be updated at the Closing to reflect any changes which occur after the Effective Date.  
2.    Security Deposit.  Tenant did not pay a security deposit to Landlord.
3.    Lease.  Except as set forth in Schedule 6 to this Agreement: (i) the Lease has not been modified or amended except as set forth on the Rent Roll; (ii) Seller has provided to Buyer a complete copy of the Lease identified on the Rent Roll; (iii) to Seller’s Actual Knowledge, Seller is not in default under the Lease and Tenant has delivered no written notice to Seller of a default on the part of Seller under the Lease, (iv) to Seller’s Actual Knowledge, Tenant is not in default under the Lease, (v) Tenant has not asserted any defense or set-off against the payment of rent in connection with the Lease and has not contested any tax, operating cost or other escalation payments or occupancy charges payable under the Lease.  The landlord under the Lease is not obligated to complete or pay for any improvements, or to advance any tenant allowance, except for improvements and allowances fully paid for or advanced prior to the Effective Date and except as disclosed in the Due Diligence Documents.  To the extent Buyer is delivered a Tenant Estoppel as to the Lease, such Tenant Estoppel shall supersede and replace this Section D.3 and the representations of Seller in this Section D.3 shall not apply to the Lease or Tenant.  
E.Other Matters

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Addendum II – Seller’s Representations and Warranties
Page 2 of 4
 
941120.4

1.    No Litigation.  Except as set forth on Schedule 6 to this Agreement there is no litigation pending or, to Seller’s Actual Knowledge, threatened: (i) against Seller that arises out of the ownership of the Property or that might materially and detrimentally affect the value or the use or operation of any of the Property for its intended purpose or the ability of such Seller to perform its obligations under this Agreement; or (ii) by Seller against any Tenant.  Seller shall notify Buyer promptly of any such litigation of which Seller becomes aware before Closing.
2.    No Contracts for Improvements.  Except as set forth on Schedule 6 to this Agreement and in connection with any new leases executed after the Effective Date and prior to Closing, at the time of Closing there will be no outstanding written or oral contracts made by Seller for any improvements to the Property which have not been fully paid for and Seller shall cause to be discharged all mechanics’ and materialmen’s liens arising from any labor or materials furnished to the Property prior to the time of Closing under contracts for such labor or materials made by Seller.
3.    Exhibits and Schedules.  The Schedules attached hereto, as provided by or on behalf of Seller, completely and correctly present in all material respects the information required by this Agreement to be set forth therein, provided, however, that as set forth in more detail in the Agreement, Seller makes no representation or warranty as to the completeness or accuracy of any materials contained in the Schedules that have been prepared by third parties unrelated to Seller.
4.    Seller Not a Foreign Person.  Seller is not a “foreign person” within the meaning of Section 1445(f)(3) of the Internal Revenue Code.
5.    Patriot Act.  Seller is not, nor is any person who owns a controlling interest in or otherwise controls Seller, (a) listed on the Specially Designated Nationals and Blocked Persons List maintained by OFAC, Department of the Treasury, and/or on any other similar list maintained by the OFAC pursuant to any OFAC Laws and Regulations; or (b) a person either (i) included within the term “designated national” as defined in the Cuban Assets Control Regulations, 31 C.F.R. Part 515, or (ii) designated under any Executive Orders.  Neither Seller nor any of its principals or affiliates is (x) a person or entity with which Buyer is prohibited from dealing or otherwise engaging in any transaction by any Anti-Terrorism Law, or that commits, threatens or conspires to commit or supports “terrorism” as defined in the Executive Orders, or (y) is directly or indirectly affiliated or associated with a person or entity listed in the preceding clause (x).  To the best knowledge of Seller, neither Seller nor any of its principals or affiliates, nor any brokers or other agents acting in any capacity in connection with the transactions contemplated herein (I) directly or indirectly deals in, or otherwise engages in any transaction relating to, any property or interests in property blocked pursuant to the Executive Orders, (II) directly or indirectly engages in any transaction in violation of any Laws relating to drug trafficking, money laundering or predicate crimes to money laundering or (III) engages in or conspires to engage in any transaction that evades or avoids, or has the purpose of evading or avoiding, or attempts to violate, any of the prohibitions set forth in any Anti-Terrorism Law.  

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Page 3 of 4
 
941120.4

6.    Seller’s Due Diligence Materials.  To the Actual Knowledge of Seller, the Due Diligence Materials delivered to Buyer pursuant to this Agreement are complete, true and correct copies of the Due Diligence Materials in Seller’s possession. 
F.Miscellaneous
1.    Timeliness of Representations and Warranties.  All representations and warranties set forth herein shall be deemed to be given as of the Effective Date and the Closing Date unless Seller otherwise notifies Buyer in writing prior to the Closing.
2.    Materiality Limitation.  Buyer shall not be entitled to any right or remedy for any inaccuracy in or breach of any representation, warranty or covenant under this Agreement or any conveyance document unless the amount of damages proximately caused thereby exceeds the Material Damage Floor, and in no event shall the damages for which Seller is liable hereunder for any such inaccuracies or breaches exceed in the aggregate the Material Damage Ceiling.
3.    Continuation and Survival of Representations and Warranties, Etc.  All representations and warranties by the respective Parties contained herein or made in writing pursuant to this Agreement are intended to and shall remain true and correct as of the time of Closing, shall be deemed to be material, and, together with all conditions, covenants and indemnities made by the respective Parties contained herein or made in writing pursuant to this Agreement (except as otherwise expressly limited or expanded by the terms of this Agreement), shall survive the execution and delivery of this Agreement and shall survive the Closing for a period of six (6) months after the Closing, or, to the extent the context requires, beyond any termination of this Agreement for a period of six (6) months.  Any claim for breach of a representation and warranty given hereunder must be filed and served within such six (6) month period, or be deemed waived and released.  

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Page 4 of 4
 
941120.4

SCHEDULE 1

TOPAZ - DAVITA
DUE DILIGENCE MATERIALS
		
	•
	ALTA Survey

		
	o
	Preliminary ALTA/ACSM Land Title Survey prepared by American Surveying & Mapping dated September 11, 2015

		
	•
	Parcel Map

		
	o
	Parcel Map 19858 

		
	•
	CAM

		
	o
	2017 Actual Recovery Schedules

		
	•
	Certificate of Occupancy

		
	•
	Certificate of Insurance-DaVita

		
	•
	CC&Rs

		
	o
	Amendment to  Declaration of Covenants Conditions and Restrictions dated as of April 25, 2018

		
	•
	Environmental

		
	◦
	Phase I Environmental Site Assessment prepared by Partner Engineering and Science, Inc., dated September 11, 2015

		
	◦
	Phase I Environmental Site Assessment prepared by Partner Engineering and Science, Inc., dated October 20, 2011

		
	•
	Leases

		
	o
	Total Renal Care, Inc. dba DaVita

		
	§
	Freestanding Building Lease dated June 25, 2007

		
	§
	First Amendment to Freestanding Building Lease dated August 1, 2017

		
	•
	Property Taxes

		
	o
	APN: 3057-121-19 for year July 1, 2017 to June 30, 2018

o    San Bernardino County Tax Collector paid receipt dated March 26, 2018, $34,551.07.
		
	•
	Rent Roll

		
	o
	Rent Roll dated April 1, 2018

		
	•
	Seismic Risk Assessment Report

		
	o
	Prepared by Partner Engineering and Science, Inc., dated September 11, 2015

		
	•
	Title

		
	o
	First American Title-Preliminary Report dated January 31, 2018

Purchase and Sale Agreement
Schedule 1 – Due Diligence Materials
Page 1 of 1
941120.4

SCHEDULE 2

DESCRIPTION OF LAND

Real property in the City of Hesperia, County of San Bernardino, State of California, described as
follows:

PARCEL ONE:

PARCEL 1 OF PARCEL MAP NO. 19858, RECORDED IN BOOK 250, PAGES 37 AND 38 OF PARCEL MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAN BERNARDINO COUNTY, CALIFORNIA.

PARCEL TWO:

EASEMENTS AS CREATED BY THAT CERTAIN DOCUMENT ENTITLED "AMENDMENT TO DECLARATION OF COVENANTS CONDITIONS AND RESTRICTIONS DATED AS OF APRIL 25, 2018 AND RECORDED MAY 15, 2018 AS INSTRUMENT NO. 2018-0175958 OF OFFICIAL RECORDS.

[NOTE: SUBJECT TO REVIEW BY TITLE COMPANY AND DESIGNATION OF NEW APN]

Purchase and Sale Agreement
Schedule 2 – Description of Land
941120.4

SCHEDULE 3

ASSUMED SERVICE CONTRACTS

Purchase and Sale Agreement
Schedule 3 – Assumed Service Contracts

941120.4

SCHEDULE 4

ENVIRONMENTAL REPORTS

Phase I Environmental Site Assessment prepared by Partner Engineering and Science, Inc, dated September 11, 2015
Phase I Environmental Site Assessment prepared by Partner Engineering and Science, Inc, dated October 20, 2011

Purchase and Sale Agreement
Schedule 4 – Environmental Reports
941120.4

SCHEDULE 5
RENT ROLL

Purchase and Sale Agreement
Schedule 5 – Rent Roll
Page 1 of 1
941120.4

SCHEDULE 6

EXCEPTIONS TO SELLER REPRESENTATIONS AND WARRANTIES

None.

Purchase and Sale Agreement
Schedule 6 – Exceptions To Seller Representations And Warranties
941120.4

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