Document:

Exhibit 10.21

	
  Loan No.: 502860893

  	
  TRT

  

PROMISSORY NOTE

	
  $110,000,000

  	
  May 11, 2007

  

FOR VALUE
RECEIVED, the undersigned, CENTERTON SQUARE LLC, TRT DDR BEAVER CREEK LLC, and
TRT DDR MT. NEBO LLC, each a Delaware limited liability company, as borrower
(individually and/or collectively, as the context may require, “Borrower”),
each having an address at c/o Developers Diversified Realty Corporation, 3300
Enterprise Parkway, Beachwood, Ohio 44122, promises to pay to the order of
WACHOVIA BANK, NATIONAL ASSOCIATION, a national banking association (together
with its successors and assigns, “Lender”), at the office of Lender at
Commercial Real Estate Services, 8739 Research Drive URP – 4, NC 1075,
Charlotte, North Carolina 28262, or at such other place as Lender may designate
to Borrower in writing from time to time, the principal sum of ONE HUNDRED TEN
MILLION AND NO/100 DOLLARS ($110,000,000), together with interest on so much
thereof as is from time to time outstanding and unpaid, from the date of the
advance of the principal evidenced hereby, at the rate of five and 51/100ths
percent (5.510%) (the “Note Rate”), together with all other amounts due
hereunder or under the other Loan Documents (as defined herein), in lawful
money of the United States of America, which shall at the time of payment be
legal tender in payment of all debts and dues, public and private.

ARTICLE I

TERMS AND CONDITIONS

Section 1.1             Computation of Interest.  Interest shall be computed hereunder based on
a 360-day year and based on the actual number of days elapsed for any period in
which interest is being calculated. 
Interest shall accrue from the date on which funds are advanced
hereunder (regardless of the time of day) through and including the day on
which funds are credited pursuant to Section 1.2 hereof.

Section 1.2             Payment of Principal and
Interest.  Payments in federal funds
immediately available at the place designated for payment received by Lender
prior to 2:00 p.m. local time on a business day on which Lender is open for
business at said place of payment shall be credited prior to close of business,
while other payments, at the option of Lender, may not be credited until
immediately available to Lender in federal funds at the place designated for
payment prior to 2:00 p.m. local time on the next business day on which Lender
is open for business.  An interest only
payment shall be payable in monthly installments in an amount calculated for
the applicable Interest Accrual Period (defined below) pursuant to the terms of
this Note, beginning on July 10, 2007 (the “First Payment Date”), and
continuing on the tenth (10th) day of each and every calendar month thereafter
through and including May 10, 2017 (each, a “Payment Date”).  On June 11, 2017 (the “Maturity Date”),
the entire outstanding principal balance hereof, together with all accrued but
unpaid interest thereon, shall be due and payable in full.  “Interest Accrual Period” shall mean
each one (1) month period, which shall commence on the eleventh (11th) day of
each calendar month and end on and include the tenth (10th) day of 

the next occurring calendar month.  At the election of Borrower, payments made
pursuant to this Section 1.2 may be made to Lender via the automated clearing
house (ACH) system.

Section 1.3             Application of Payments.  So long as no Event of Default (as
hereinafter defined) exists hereunder or under any other Loan Document, each
such monthly installment shall be applied, first, to any amounts hereafter
advanced by Lender hereunder or under any other Loan Document, second, to any
late fees and other amounts payable to Lender, third, to the payment of accrued
interest and last to reduction of principal.

Section 1.4             Payment of Short Interest.  Borrower shall pay to Lender contemporaneously
with the execution hereof interest at the Note Rate for a period from the date
hereof through and including the tenth (10th) day of June, 2007.

Section 1.5             Prepayment

(a)           This Note may be prepaid in whole or
in part at any time after the second (2nd) anniversary of the date hereof (the “Lock-out
Expiration Date”) provided (i) written notice of such prepayment is
received by Lender not more than ninety (90) days and not less than thirty (30)
days prior to the date of such prepayment, (ii) such prepayment is made on a
Payment Date or in the event such prepayment is not on a Payment Date, such
prepayment shall include all interest on the principal amount being prepaid
through the end of the Interest Accrual Period relating to the next Payment Date,
(iii) such prepayment is accompanied by all interest accrued hereunder through
and including the date of such prepayment and all other sums due hereunder or
under the other Loan Documents, and (iv) if such prepayment occurs after the
Lock-out Expiration Date but on or before the date that is nine (9) years and
six (6) months after the date of this Note (the date that is nine (9) years and
six (6) months after the date of this Note being hereinafter referred to as the
“Open Prepayment Date”), Lender (except as otherwise provided in Section
1.5(c)) is paid a prepayment fee in an amount equal to the greater of (A) one
percent (1.0%) of the principal amount being prepaid, and (B) the present value
of a series of payments each equal to the Payment Differential (as hereinafter
defined) and payable on each Payment Date over the term of this Note and
remaining until the Open Prepayment Date, discounted at the Reinvestment Yield
(as hereinafter defined) for the number of months remaining as of the date of
such prepayment to each such Payment Date and ending on the Open Prepayment
Date.  The term “Payment Differential”
shall mean an amount equal to (i) the Note Rate less the Reinvestment Yield,
divided by (ii) twelve (12) and multiplied by (iii) the principal sum being
repaid after application of the constant monthly payment due under this Note on
the date of such prepayment, provided that the Payment Differential shall in no
event be less than zero.  The term “Reinvestment
Yield” shall mean an amount equal to the yield on the U.S. Treasury issue
(primary issue) with a maturity date closest to the Open Prepayment Date plus
twenty-five (25) basis points.  In the
event that any prepayment fee is due hereunder, Lender shall deliver to
Borrower a statement setting forth the amount and determination of the
prepayment fee together with support on how such amount was determined, and,
provided that Lender shall have in good faith applied the formula described
above, Borrower shall not have the right to challenge the calculation or the
method of calculation set forth in any such statement in the absence of
manifest error, which calculation may be made by Lender on any day during the
thirty (30) day period preceding the date of such prepayment.  Lender shall not be obligated or required to
have actually reinvested the prepaid principal balance at the Reinvestment
Yield or otherwise as a 

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condition to receiving the prepayment
fee.  No prepayment fee or premium shall
be due or payable in connection with any prepayment of the indebtedness
evidenced by this Note made after the Open Prepayment Date.  In addition to the aforesaid prepayment fee,
if, upon any such permitted or required prepayment (whether prior to or after
the Open Prepayment Date), the aforesaid prior written notice has not been
timely received by Lender, the prepayment fee shall be increased by, or if no
prepayment fee is otherwise due, there shall be due a prepayment fee equal to,
an amount equal to the lesser of (i) thirty (30) days’ interest computed at the
Note Rate on the outstanding principal balance of this Note so prepaid and (ii)
interest computed at the Note Rate on the outstanding principal balance of this
Note so prepaid that would have been payable for the period from, and
including, the date of prepayment through the Maturity Date of this Note as
though such prepayment had not occurred.

(b)           Except as otherwise expressly
provided in Section 1.5(d) below, the prepayment fees provided above shall be
due, to the extent permitted by applicable law, under any and all circumstances
where all or any portion of this Note is paid prior to the Open Prepayment
Date, whether such prepayment is voluntary or involuntary, including, without
limitation, if such prepayment results from Lender’s exercise of its rights
upon Borrower’s default and acceleration of the Maturity Date of this Note
(irrespective of whether foreclosure proceedings have been commenced), and
shall be in addition to any other sums due hereunder or under any of the other
Loan Documents.  No tender of a prepayment
of this Note with respect to which a prepayment fee is due shall be effective
unless such prepayment is accompanied by the applicable prepayment fee.  If, prior to the Open Prepayment Date, the
indebtedness evidenced by this Note shall have been declared due and payable by
Lender pursuant to Article II hereof or the provisions of any other Loan
Document due to a default by Borrower, then there shall also then be
immediately due and payable a sum equal to the interest which would have
accrued on the principal balance of this Note at the Note Rate from the date of
such acceleration to the Open Prepayment Date, together with a prepayment fee
in an amount equal to the prepayment fee that would have been due and payable
on the Open Prepayment Date as though Borrower were prepaying the entire
indebtedness evidenced hereby on the first (1st) day on which a prepayment
would have been permitted pursuant to the provisions set forth in this
Note.  If such acceleration is during any
period when a prepayment fee is payable pursuant to the provisions set forth in
this Note, then, a prepayment fee shall also then be immediately due and
payable as though Borrower were prepaying the entire indebtedness on the date
of such acceleration.   In addition to
the amounts described in the two preceding sentences, in the event of any
tender of payment of such indebtedness made on or prior to the first (1st)
anniversary of the date of this Note, there shall also then be immediately due
and payable an additional prepayment fee of two percent (2%) of the principal
balance of this Note.

(c)           Partial prepayments resulting from
Lender’s election to apply insurance or condemnation proceeds to reduce the
outstanding principal balance of this Note as provided in the Security
Instrument shall not require any prepayment fee or premium.  No notice of prepayment shall be required
under the circumstances specified in the preceding sentence.  No principal amount repaid may be
reborrowed.  Any such partial prepayments
of principal shall be applied to the unpaid principal balance evidenced
hereby.  Except as otherwise expressly
provided in this Section, the prepayment fees provided above shall be due, to
the extent permitted by applicable law, under any and all circumstances where
all or any portion of this Note is paid prior to the Open Prepayment Date,
whether such prepayment is voluntary or 

 3
 

involuntary, including, without limitation,
if such prepayment results from Lender’s exercise of its rights upon Borrower’s
Event of Default and acceleration of the Maturity Date of this Note
(irrespective of whether foreclosure proceedings have been commenced), and
shall be in addition to any other sums due hereunder or under any of the other
Loan Documents.  No tender of a
prepayment of this Note with respect to which a prepayment fee is due shall be
effective unless such prepayment is accompanied by the applicable prepayment
fee.

Section 1.6             Security.  The indebtedness evidenced by this Note and
the obligations created hereby are secured by, among other things, that certain
Mortgage, Security Agreement and Fixture Filing given by Centerton Square LLC,
as mortgagor (the “Centeron Security Instrument”), that certain Open-End
Mortgage, Security Agreement and Fixture Filing given by TRT DDR Mt. Nebo LLC,
as mortgagor (the “Mt Nebo Security Instrument”), and that certain Deed
of Trust, Security Agreement and Fixture Filing given by TRT DDR Beaver Creek
LLC, as grantor (the “Beaver Creek Security Instrument”, along with the
Centeron Security Instrument and the Mt Nebo Security Instrument and as each
may be amended, restated, supplanted, substituted or otherwise consolidated,
individually and/or collectively as the context may require, the “Security
Instrument”) each dated of even date herewith, covering the Property (as
defined in the Security Instrument).  The
Security Instrument, together with this Note and all other documents executed
or delivered by or on behalf of Borrower to or of which Lender is a party or
beneficiary now or hereafter evidencing, securing, guarantying, modifying or
otherwise relating to the indebtedness evidenced hereby, are herein referred to
collectively as the “Loan Documents”. 
All of the terms and provisions of the Loan Documents are incorporated
herein by reference.  Some of the Loan
Documents are to be filed for record on or about the date hereof in the
appropriate public records.

ARTICLE II

DEFAULT

Section 2.1             Events of Default.  It is hereby expressly agreed that should any
default occur in the payment of principal or interest as stipulated above and
such payment is not made on the date such payment is due, or should any other
default occur under any other Loan Document and not be cured within any
applicable grace or notice period (if any), then an Event of Default (an “Event
of Default”) shall exist hereunder, and in such event the indebtedness
evidenced hereby, including all sums advanced or accrued hereunder or under any
other Loan Document, and all unpaid interest accrued thereon, shall, at the
option of Lender and without notice to Borrower, at once become due and payable
and may be collected forthwith, whether or not there has been a prior demand
for payment and regardless of the stipulated date of maturity.

Section 2.2             Late Charges.  In the event that any payment is not received
by Lender on the date when due (subject to any applicable grace period), then,
in addition to any default interest payments due hereunder, Borrower shall also
pay to Lender a late charge in an amount equal to four percent (4%) of the
amount of such overdue payment; provided, that such late charge shall not be
payable on the principal balance not repaid on the Maturity Date.

Section 2.3             Default Interest Rate.  So long as any Event of Default exists
hereunder or under any other Loan Document, regardless of whether or not there
has been an 

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acceleration of the indebtedness evidenced
hereby, and at all times after maturity of the indebtedness evidenced hereby
(whether by acceleration or otherwise), interest shall accrue on the
outstanding principal balance of this Note, from the date due until the date
credited, at a rate per annum equal to four percent (4%) in excess of the Note
Rate, or, if such increased rate of interest may not be collected under
applicable law, then at the maximum rate of interest, if any, which may be
collected from Borrower under applicable law (as applicable, the “Default
Interest Rate”), and such default interest shall be immediately due and
payable.

Section 2.4             Borrower’s Agreements.  Borrower acknowledges that it would be
extremely difficult or impracticable to determine Lender’s actual damages
resulting from any late payment or default, and such late charges and default
interest are reasonable estimates of those damages and do not constitute a
penalty.  The remedies of Lender in this
Note or in the Loan Documents, or at law or in equity, shall be cumulative and
concurrent, and may be pursued singly, successively or together, in Lender’s
discretion.

Section 2.5             Borrower to Pay Costs.  In the event that this Note, or any part
hereof, is collected by or through an attorney-at-law, Borrower agrees to pay
all costs of collection, including, but not limited to, reasonable attorneys’
fees.

Section 2.6             Exculpation.  Notwithstanding anything in this Note or the
Loan Documents to the contrary, but subject to the qualifications hereinbelow
set forth, Lender agrees that:

(a)           Borrower shall be liable upon the
indebtedness evidenced hereby and for the other obligations arising under the
Loan Documents to the full extent (but only to the extent) of the security
therefor, the same being the Property;

(b)           if a default occurs in the timely and
proper payment of all or any part of such indebtedness evidenced hereby or in
the timely and proper performance of the other obligations of Borrower under
the Loan Documents, any judicial proceedings brought by Lender against Borrower
shall be limited to the preservation, enforcement and foreclosure, or any
thereof, of the liens, security titles, estates, assignments, rights and
security interests now or at any time hereafter securing the payment of this
Note and/or the other obligations of Borrower under the Loan Documents, and no
attachment, execution or other writ of process shall be sought, issued or
levied upon any assets, properties or funds of Borrower other than the Property,
except with respect to the liability described below in this section; and

(c)           in the event of a foreclosure of such
Property, no judgment for any deficiency upon the indebtedness evidenced hereby
shall be sought or obtained by Lender against Borrower, except with respect to
the liability described below in this section; provided, however,
that, notwithstanding the foregoing provisions of this section, Borrower shall
be fully and personally liable and subject to legal action (i) for proceeds
paid under any insurance policies (or paid as a result of any other claim or
cause of action against any person or entity) by reason of damage, loss or
destruction to all or any portion of the Property, to the 

 5
 

full extent of such proceeds not previously
delivered to Lender, but which, under the terms of the Loan Documents, should
have been delivered to Lender, (ii) for proceeds or awards resulting from the
condemnation or other taking in lieu of condemnation of all or any portion of
the Property, to the full extent of such proceeds or awards not previously
delivered to Lender, but which, under the terms of the Loan Documents, should
have been delivered to Lender, (iii) for all tenant security deposits or other
refundable deposits paid to or held by Borrower or any other person or entity
in connection with leases of all or any portion of the Property which are not
applied in accordance with the terms of the applicable lease or other
agreement, (iv) for rent and other payments received from tenants under leases
of all or any portion of the Property paid more than one (1) month in advance
which has not, at the time of demand by Lender, been applied to the payment of
such tenant’s rent in accordance with its lease, (v) for rents, issues, profits
and revenues of all or any portion of the Property received or applicable to a
period after the occurrence of any Event of Default hereunder or under the Loan
Documents which are not either applied to the ordinary expenses of owning and
operating the Property or paid to Lender, (vi) for waste committed on the
Property, intentional damage to the Property as a result of the intentional
misconduct or gross negligence of Borrower or any of its principals, officers,
general partners or members, any guarantor, any indemnitor, or any agent or
employee of any such person, or any removal of 
all or any portion of the Property in violation of the terms of the Loan
Documents, to the full extent of the actual losses or damages incurred by
Lender on account of such occurrence, (vii) for failure to pay any valid taxes,
assessments, mechanic’s liens, materialmen’s liens or other liens which could
create liens on any portion of the Property which would be superior to the lien
or security title of the Security Instrument or the other Loan Documents, to
the full extent of the amount claimed by any such lien claimant except, with
respect to any such taxes or assessments, to the extent that funds have been
deposited with Lender pursuant to the terms of the Security Instrument
specifically for the applicable taxes or assessments and not applied by Lender
to pay such taxes and assessments and except to the extent that Borrower
delivers evidence reasonably acceptable to Lender that such failure to pay such
costs and expenses was caused by the Property not generating sufficient cash
flow to pay such expenses, (viii) for all obligations and indemnities of
Borrower under the Loan Documents relating to Hazardous Substances (as defined
in the Security Instrument) or radon or compliance with Environmental Laws (as
defined in the Security Instrument) and regulations to the full extent of any
actual losses or damages incurred by Lender as a result of the existence of
such Hazardous Substances or radon or failure to comply with such Environmental
Laws or regulations, (ix) for fraud, material misrepresentation or failure to
disclose a material fact by Borrower or any of its principals, officers,
general partners or members, any guarantor, any indemnitor or any agent,
employee or other person authorized or apparently authorized to make
statements, representations or disclosures on behalf of Borrower, any
principal, officer, general partner or member of Borrower, any guarantor or any
indemnitor, (x) a default by Borrower, Indemnitor (as defined in the Security
Instrument) or any general partner, manager or managing member of Borrower of
any of the covenants set forth in Section 2.9 of the Security Agreement,
to the full extent of any actual losses, damages and expenses of Lender on
account thereof, (xi) for losses incurred by Lender due to a default by
Borrower, Indemnitor (as defined in the Security Instrument) or any general
partner, manager or managing member of Borrower which is a Single-Purpose
Entity (as defined in the Security Instrument) (if any) of the covenants set
forth in Section 2.29 of the Security Instrument, (xii) for losses in
the event that Borrower or any affiliate contests or in any material way
interferes with, directly or indirectly, (collectively, a “Contest”) any
foreclosure action, UCC sale or other material remedy exercised by Lender upon
the occurrence of any Event of Default whether by making any motion, bringing
any counterclaim, claiming any defense, seeking any injunction or other
restraint, commencing any 

 6
 

action, or otherwise (provided that if any
such person obtains a non-appealable order successfully asserting a Contest,
Borrower shall have no liability under this clause, (xiii) for losses in the
event that the Property or any part thereof shall become an asset in (A) a
voluntary bankruptcy or insolvency proceeding of Borrower or Indemnitor, or (B)
an involuntary bankruptcy or insolvency proceeding of Borrower or Indemnitor in
which the Borrower or the Indemnitor colludes with creditors in such bankruptcy
or insolvency proceeding and which is not dismissed within sixty (60) days of
filing or (xiv) for losses for failure of any of the representations in Section
2.29(d) and (e) of the Centerton Security Instrument to be true.  References herein to particular sections of
the Loan Documents shall be deemed references to such sections as affected by
other provisions of the Loan Documents relating thereto.  Nothing contained in this section shall (1)
be deemed to be a release or impairment of the indebtedness evidenced by this
Note or the other obligations of Borrower under the Loan Documents or the lien
of the Loan Documents upon the Property, or (2) preclude Lender from
foreclosing the Loan Documents in case of any default or from enforcing any of
the other rights of Lender except as stated in this section, or (3) limit or
impair in any way whatsoever the Environmental Indemnity Agreement (the “Environmental
Indemnity Agreement”) of even date herewith executed and delivered in
connection with the indebtedness evidenced by this Note or release, relieve,
reduce, waive or impair in any way whatsoever, any obligation of any party to
the Indemnity Agreement or the Environmental Indemnity Agreement.

Notwithstanding
anything to the contrary in this Note, the Security Instrument or any of the
other Loan Documents, Lender shall not be deemed to have waived any right which
Lender may have under Section 506(a), 506(b), 1111(b) or any other provisions
of the U.S. Bankruptcy Code to file a claim for the full amount of the
indebtedness evidenced hereby or secured by the Security Instrument or any of
the other Loan Documents or to require that all collateral shall continue to
secure all of the indebtedness owing to Lender in accordance with this Note,
the Security Instrument and the other Loan Documents.

ARTICLE III

GENERAL CONDITIONS

Section 3.1             No Waiver; Amendment.  No failure to accelerate the indebtedness
evidenced hereby by reason of default hereunder, acceptance of a partial or
past due payment, or indulgences granted from time to time shall be construed
(i) as a novation of this Note or as a reinstatement of the indebtedness
evidenced hereby or as a waiver of such right of acceleration or of the right
of Lender thereafter to insist upon strict compliance with the terms of this
Note, or (ii) to prevent the exercise of such right of acceleration or any
other right granted hereunder or by any applicable laws; and Borrower hereby
expressly waives the benefit of any statute or rule of law or equity now
provided, or which may hereafter be provided, which would produce a result
contrary to or in conflict with the foregoing. 
No extension of the time for the payment of this Note or any installment
due hereunder made by agreement with any person now or hereafter liable for the
payment of this Note shall operate to release, discharge, modify, change or
affect the original liability of Borrower under this Note, either in whole or
in part, unless Lender agrees otherwise in writing.  This Note may not be changed orally, but only
by an agreement in writing 

 7
 

signed by the party against whom enforcement
of any waiver, change, modification or discharge is sought.

Section 3.2             Waivers.  Presentment for payment, demand, protest and
notice of demand, protest and nonpayment and all other notices are hereby
waived by Borrower.  Borrower hereby
further waives and renounces, to the fullest extent permitted by law, all
rights to the benefits of any moratorium, reinstatement, marshaling,
forbearance, valuation, stay, extension, redemption, appraisement, exemption
and homestead now or hereafter provided by the Constitution and laws of the
United States of America and of each state thereof, both as to itself and in
and to all of its property, real and personal, against the enforcement and
collection of the obligations evidenced by this Note or the other Loan
Documents.

Section 3.3             Limit of Validity.  The provisions of this Note and of all
agreements between Borrower and Lender, whether now existing or hereafter
arising and whether written or oral, including, but not limited to, the Loan
Documents, are hereby expressly limited so that in no contingency or event
whatsoever, whether by reason of demand or acceleration of the maturity of this
Note or otherwise, shall the amount contracted for, charged, taken, reserved,
paid or agreed to be paid (“Interest”) to Lender for the use,
forbearance or detention of the money loaned under this Note exceed the maximum
amount permissible under applicable law. 
If, from any circumstance whatsoever, performance or fulfillment of any
provision hereof or of any agreement between Borrower and Lender shall, at the
time performance or fulfillment of such provision shall be due, exceed the
limit for Interest prescribed by law or otherwise transcend the limit of
validity prescribed by applicable law, then, ipso facto, the obligation to be
performed or fulfilled shall be reduced to such limit, and if, from any
circumstance whatsoever, Lender shall ever receive anything of value deemed
Interest by applicable law in excess of the maximum lawful amount, an amount
equal to any excessive Interest shall be applied to the reduction of the
principal balance owing under this Note in the inverse order of its maturity
(whether or not then due) or, at the option of Lender, be paid over to
Borrower, and not to the payment of Interest. 
All Interest (including any amounts or payments judicially or otherwise
under the law deemed to be Interest) contracted for, charged, taken, reserved,
paid or agreed to be paid to Lender shall, to the extent permitted by
applicable law, be amortized, prorated, allocated and spread throughout the
full term of this Note, including any extensions and renewals hereof until
payment in full of the principal balance of this Note so that the Interest
thereon for such full term will not exceed at any time the maximum amount
permitted by applicable law.  To the
extent United States federal law permits a greater amount of interest than is
permitted under the law of the State in which the Property is located, Lender
will rely on United States federal law for the purpose of determining the
maximum amount permitted by applicable law. 
Additionally, to the extent permitted by applicable law now or hereafter
in effect, Lender may, at its option and from time to time, implement any other
method of computing the maximum lawful rate under the law of the State in which
the Property is located or under other applicable law by giving notice, if
required, to Borrower as provided by applicable law now or hereafter in
effect.  This Section 3.3 will control
all agreements between Borrower and Lender.

Section 3.4             Use of Funds.  Borrower hereby warrants, represents and
covenants that no funds disbursed hereunder shall be used for personal, family
or household purposes.

 8
 

Section 3.5             Unconditional Payment.  Borrower is and shall be obligated to pay
principal, interest and any and all other amounts which become payable
hereunder or under the other Loan Documents absolutely and unconditionally and
without any abatement, postponement, diminution or deduction and without any
reduction for counterclaim or setoff.  In
the event that at any time any payment received by Lender hereunder shall be
deemed by a court of competent jurisdiction to have been a voidable preference
or fraudulent conveyance under any bankruptcy, insolvency or other debtor
relief law, then the obligation to make such payment shall survive any
cancellation or satisfaction of this Note or return thereof to Borrower and
shall not be discharged or satisfied with any prior payment thereof or
cancellation of this Note, but shall remain a valid and binding obligation
enforceable in accordance with the terms and provisions hereof, and such
payment shall be immediately due and payable upon demand.

Section 3.6             Governing Law.  (A)            THE
PARTIES AGREE THE STATE OF NEW YORK HAS A SUBSTANTIAL RELATIONSHIP TO THE
PARTIES AND TO THE UNDERLYING TRANSACTION EMBODIED HEREBY, AND IN ALL RESPECTS,
INCLUDING, WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, MATTERS OF
CONSTRUCTION, VALIDITY AND PERFORMANCE, THIS NOTE AND THE OBLIGATIONS ARISING
HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF
THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND PERFORMED IN SUCH STATE
(WITHOUT REGARD TO PRINCIPLES OF CONFLICT LAWS) AND ANY APPLICABLE LAW OF THE
UNITED STATES OF AMERICA.  TO THE FULLEST
EXTENT PERMITTED BY LAW, LENDER AND BORROWER EACH HEREBY UNCONDITIONALLY AND
IRREVOCABLY WAIVES ANY CLAIM TO ASSERT THAT THE LAW OF ANY OTHER JURISDICTION
GOVERNS THIS NOTE AND THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

(B) ANY LEGAL
SUIT, ACTION OR PROCEEDING AGAINST LENDER OR BORROWER ARISING OUT OF OR
RELATING TO THIS NOTE MAY AT LENDER’S OR BORROWER’S OPTION BE INSTITUTED IN ANY
FEDERAL OR STATE COURT IN THE STATE OF NEW YORK, AND LENDER AND BORROWER EACH
WAIVES ANY OBJECTIONS WHICH IT MAY NOW OR HEREAFTER HAVE BASED ON VENUE AND/OR
FORUM NON CONVENIENS OF ANY SUCH SUIT, ACTION OR PROCEEDING.

Section 3.7             Waiver of Jury Trial.  BORROWER AND LENDER, TO THE FULL EXTENT
PERMITTED BY LAW, HEREBY KNOWINGLY, INTENTIONALLY AND VOLUNTARILY, WITH AND
UPON THE ADVICE OF COMPETENT COUNSEL, WAIVES, RELINQUISHES AND FOREVER FORGOES
THE RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING BASED UPON, ARISING
OUT OF, OR IN ANY WAY RELATING TO THE DEBT EVIDENCED BY THIS NOTE OR ANY
CONDUCT, ACT OR OMISSION OF LENDER OR BORROWER, OR ANY OF THEIR RESPECTIVE
DIRECTORS, OFFICERS, PARTNERS, MEMBERS, EMPLOYEES, AGENTS OR ATTORNEYS, OR ANY
OTHER PERSONS AFFILIATED WITH LENDER OR BORROWER, IN EACH OF THE FOREGOING CASES,
WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE.

 9
 

ARTICLE
IV

MISCELLANEOUS PROVISIONS

Section 4.1             Successors and Assigns; Joint
and Several; Interpretation.  The
terms and provisions hereof shall be binding upon and inure to the benefit of
Borrower and Lender and their respective heirs, executors, legal
representatives, successors, successors in title and assigns, whether by
voluntary action of the parties or by operation of law.  As used herein, the terms “Borrower”
and “Lender” shall be deemed to include their respective heirs,
executors, legal representatives, successors, successors in title and assigns,
whether by voluntary action of the parties or by operation of law.  If Borrower consists of more than one person
or entity, each shall be jointly and severally liable to perform the
obligations of Borrower under this Note. 
All personal pronouns used herein, whether used in the masculine,
feminine or neuter gender, shall include all other genders; the singular shall
include the plural and vice versa. 
Titles of articles and sections are for convenience only and in no way
define, limit, amplify or describe the scope or intent of any provisions
hereof.  Time is of the essence with
respect to all provisions of this Note. 
This Note and the other Loan Documents contain the entire agreements
between the parties hereto relating to the subject matter hereof and thereof
and all prior agreements relative hereto and thereto which are not contained
herein or therein are terminated.

Section 4.2             Taxpayer Identification.  Borrower’s Tax Identification Number is set
forth on Schedule 1 attached hereto and made a part hereof.

[THE BALANCE OF
THIS PAGE IS INTENTIONALLY LEFT BLANK]

 10

IN WITNESS WHEREOF, the undersigned has executed this Note as of the
date first written above.

	
  

  	
  BORROWER:

  
	
   

  	
   

  
	
   

  	
  CENTERTON SQUARE LLC, a Delaware limited

  liability company

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David E. Weiss

  	
   

  
	
   

  	
   

  	
  Name: DAVID E. WEISS

  
	
   

  	
   

  	
  Title: SR. VICE PRESIDENT

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TRT DDR BEAVER CREEK LLC, a Delaware

  limited liability company

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David E. Weiss

  	
   

  
	
   

  	
   

  	
  Name: DAVID E. WEISS

  
	
   

  	
   

  	
  Title: SR. VICE PRESIDENT

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TRT DDR MT. NEBO LLC, a Delaware limited

  liability company

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David E. Weiss

  	
   

  
	
   

  	
   

  	
  Name: DAVID E. WEISS

  
	
   

  	
   

  	
  Title: SR. VICE PRESIDENT

  

 

Schedule 1

Borrowers’ Tax
Identification Numbers

	
  Centerton Square LLC

  	
  06-1643946

  
	
   

  	
   

  
	
  TRT DDR Beaver Creek LLC

  	
  20-8903961

  
	
   

  	
   

  
	
  TRT DDR Mt. Nebo LLC

  	
  20-8903885

  

 

EXHIBIT A

List of Security
Instruments

1.                                       Mortgage,
Security Agreement and Fixture Filing by Centerton Square LLC, a Delaware
limited liability company to Lender dated as of the date here securing property
located in Burlington County, New Jersey commonly known as Centerton Square.

2.                                       Deed
of Trust, Security Agreement and Fixture Filing by TRT DDR Beaver Creek LLC, a
Delaware limited liability company to Lender dated as of the date here securing
property located in Wake County, North Carolina commonly known as Beaver Creek
Commons.

3.                                       Open-End
Mortgage, Security Agreement and Fixture Filing by TRT DDR Mt. Nebo LLC, a
Delaware limited liability company to Lender dated as of the date here securing
property located in Allegheny County, Pennsylvania commonly known as Mt. Nebo
Pointe.Exhibit 10.22

REAL ESTATE SALE AGREEMENT 

Concourse Fortune Property, San Jose, California

This Real Estate Sale
Agreement (this “Agreement”)  is made effective as of March 22, 2007
(the “Effective Date”), between
Concourse Fortune Associates LLC, a Delaware limited liability company  (“Seller”), and Westcore Properties AC, LLC,
a Delaware limited liability company  (“Purchaser”). In consideration of the
mutual covenants in this Agreement, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
Seller and Purchaser agree as follows:

1.             Purchase
and Sale of Property. Subject
to and in accordance with the terms and conditions set forth in this Agreement,
Purchaser shall purchase from
Seller and Seller shall sell to Purchaser: 
(i) that certain real property (the “Real
Property”) in San Jose, Santa Clara County, California, that is
legally described in the Exhibit A attached
to this Agreement, and upon which are located 5 office buildings with street
addresses of 1710, 2010, 2030 and 2040 Fortune Drive, and 1953, 1955, 1957,
1959, 1961, 1963 and 1965 Concourse Drive; (ii) all buildings and improvements
on the Real Property, subject to the rights of the tenants under the “Leases”,
as that term is defined below, and any and all of Seller’s rights, easements,
licenses and privileges presently on or pertaining to the Real Property (the “Improvements”); (iii) Seller’s right,
title and interest in and to the leases, occupancy agreements and license
agreements affecting the Real Property listed on the Exhibit K attached to this Agreement (the “Leases”); (iv) all furniture, furnishings,
fixtures, equipment and other tangible personal property owned by Seller,
located on and used solely in connection with the Real Property, but
specifically excluding any and all computer hardware and software (the “Tangible Personal Property”),  a list of which is attached to this
Agreement as Exhibit B;  and (v) Seller’s right, title and
interest, to the extent transferable, in and to (1) all approvals,
entitlements, licenses, permits and warranties, but only to the extent that
they are now used in connection with the operation, ownership, maintenance,
management, or occupancy of the Real Property (and not to any other property
Seller or its affiliates owns), and (2) to the extent in Seller’s possession,
any blueprints, plans, specifications, maps or drawings, but only to the extent
they are used in connection with the operation, ownership, maintenance,
management, or occupancy of the Real Property and Improvements (and not to any
other property Seller or its affiliates own) and subject to any rights of the
preparers of such documents; all to the extent applicable to the period from
and after the “Closing Date”, as Section 4 of this Agreement defines that term,
except as expressly set forth to the contrary in this Agreement (collectively,
the “Intangible Personal Property”).  The Real Property, the Improvements, the
Leases, the Tangible Personal Property, and the Intangible Personal Property
are, collectively, the “Property”,  provided that the term “Property”
expressly excludes all property owned by tenants or other users or occupants of
the Property, all rights with respect to any refund of taxes applicable to any
period before the Closing Date, all rights to any insurance proceeds or
settlements for events occurring before Closing, subject to Section 5 of this
Agreement, and all property in the management office of the Property owned by
the “Property Manager”, as Section 4.1 of this Agreement defines that term.

2.             Purchase
Price. The total
consideration to be paid by Purchaser to Seller for the Property is $47,250,000
(the “Purchase Price”).

2.1           Earnest
Money. Within 2 “Business
Days”, as Section 12.18 of this Agreement defines that term, after the
Effective Date, Purchaser shall deliver to the

 1
 

attention of Heather Kucala
at the San Francisco office of First American Title Insurance Company  (“Escrow Agent”)  $500,000 (the “Earnest
Money”),  which Escrow
Agent shall hold in an escrow account (the “Escrow”).
The Earnest Money shall be invested as Seller and Purchaser direct. Any and all
interest earned on the Earnest Money shall be part of the Earnest Money and
shall be reported to Purchaser’s federal tax identification number. During the “Due
Diligence Period”, as Section 8.1 of this Agreement defines that term, the
Earnest Money shall be fully refundable to Purchaser, and if Purchaser fails to
timely deliver the “Approval Notice”, as Section 8.4 of this Agreement defines
that term, Escrow Agent shall return the Earnest Money to Purchaser without
further instruction or written approval from Seller in accordance with Section
8.4. In addition, if Purchaser terminates this Agreement under any provision of
this Agreement that expressly gives Purchaser the right to terminate, the
Earnest Money shall be returned to Purchaser in accordance with the applicable
provision. If the transaction closes in accordance with the terms of this
Agreement, Escrow Agent shall deliver the Earnest Money to Seller at Closing as
payment toward the Purchase Price.

2.2           Cash
Balance. At Closing,
Purchaser shall pay to Seller the Purchase Price, less the Earnest Money, and
plus or minus the adjustments and prorations described in this Agreement (such
amount, as adjusted, is the “Cash Balance”).  Purchaser shall pay the Cash Balance by
federal funds wire transferred to Escrow at Closing.

3.             Evidence
of Title. Within 5
days after the Effective Date, Seller shall cause First American Title
Insurance Company  (“Title
Insurer”) to deliver to Purchaser a current preliminary title report
for the Property (the “Title Report”), and copies of all title exception
documents to which the Title Report refers. Purchaser acknowledges that it has
received, before the Effective Date, copies of the following 3 existing surveys
of the Real Property: (i) the ALTA survey of the 3 buildings at 2010, 2030, and
2040 Fortune Drive by Slooten Consulting, Inc. dated 5/30/00, identified as Job
No. 6585; (ii) the ALTA survey of the building at 1710 Fortune Drive by Slooten
Consulting, Inc. dated 5/24/00, identified as Job. No. 6310-02; and (iii) the
ALTA survey of the building with street addresses of 1953, 1955, 1957, 1959,
1961, 1963, and 1965, Concourse Drive by Slooten Consulting, Inc. dated
5/25/00, identified as Job No. 6311-02 (the “Existing
Surveys”). Any updated or new survey of the Property that Purchaser
obtains shall be an “Updated Survey”.  Purchaser shall have 25 days after the
Effective Date to notify Seller in writing (the “Title Objection Notice”), specifying any exceptions and/or
survey matters to which Purchaser objects (the “Title Objections”).  Seller
shall have a period of 2 Business Days after Seller’s receipt of the Title
Objection Notice (a) to remove, or agree in a written notice delivered to Purchaser
to remove prior to the Closing, some or all of the Title Objections, or (b) to
advise Purchaser, in writing, that Seller will not agree to remove some or all
of the Title Objections (the “Title Response
Notice”). If Seller fails to timely deliver to Purchaser the Title
Response Notice, it shall be conclusively deemed that Seller has elected not to
remove any of the Title Objections. If Seller agrees in its Title Response
Notice to remove any Title Objections, Seller shall remove those Title Objections
at or before Closing. If any update or supplement to the Title Report or the
Updated Survey that Purchaser first receives after the expiration of the Due
Diligence Period (a “Title Amendment”)  reveals any new title exception that
Purchaser did not cause (an “Additional Title
Exception”), Purchaser shall have 10 Business Days after receiving
the applicable Title Amendment in which to object in writing to such Additional
Title Exception (an “Additional Title
Objections Notice”),  in

 2
 

which case all such Additional
Title Exceptions to which Purchaser objects shall be additional Title
Objections. Seller shall have 2 Business Days after receiving an Additional
Title Objections Notice in which to deliver an additional Title Objection
Response notifying Purchaser that it agrees to remove all of the additional
Title Objections in the applicable Additional Title Objections Notice. If
Seller fails to timely deliver to Purchaser such an additional Title Response
Notice, Seller shall be conclusively deemed to have elected not to remove any
of the additional Title Objections in the Additional Title Objections Notice.
If Seller agrees to remove any such additional Title Objections, Seller shall
have until Closing to cure the additional Title Objections, provided that if Seller
receives any Additional Title Objections Notice less than 15 days before the
scheduled Closing Date, the Closing Date shall be extended, if necessary, to
allow Seller 15 days to cure. Notwithstanding the foregoing, by the Closing
Date, Seller shall remove or cause to be removed all deeds of trust, mortgages,
monetary liens, and other security instruments affecting the Property other
than current taxes and assessments not yet due and payable. In addition, if
Buyer is able to locate any person authorized to execute and deliver an
estoppel on behalf of the declarant under the covenants, conditions and
restrictions recorded against the Property, Seller shall cooperate with
Purchaser in requesting and attempting to obtain any such estoppel or estoppels
that Purchaser reasonably requests. If Purchaser delivers the Approval Notice
to Seller under Section 8.4, all matters affecting title other than Title
Objections that Seller has agreed to remove in any Title Response Notice shall
be “Permitted Exceptions”.

4.             Closing.
The payment of the
Purchase Price, the transfer of title to the Property, and the satisfaction of
all other terms and conditions of the transactions this Agreement contemplates
(the “Closing”) shall, subject to
any extension under Section 3 or Section 10 of this Agreement, occur on the 15th day after the Due Diligence
Period expires (the “Closing Date”), through escrow at the San Francisco
office of Title Insurer.

4.1           Seller’s Closing Deliveries. At
Closing, Seller shall execute (as necessary) and deliver to Purchaser (either
through escrow or as this Section 4.1 provides) each of the following
documents: (i) one original Grant Deed, in form acceptable to Purchaser,
subject to the Permitted Exceptions; (ii) 2 original counterparts of a Bill of
Sale in the form attached to this Agreement as Exhibit E; (iii) 2 original counterparts of the General
Assignment in the form attached to this Agreement as Exhibit M (the “General
Assignment”)  (iv) one
original tenant notice for each tenant of the Property, substantially in the
form attached to this Agreement as Exhibit F (each,
a “Notice to Tenant”);  (v) Seller’s non-foreign affidavit, in the
form attached to this Agreement as Exhibit G;  (vi) a California form 593-C non-foreign
affidavit executed by Seller; (vii) one counterpart of the “Joint Closing
Statement”, as Section 4.3 of this Agreement defines that term; (viii) one
counterpart of the final and agreed-upon closing statement prepared by Escrow
Agent (the “Escrow Agent’s Closing Statement”);  (ix) evidence of termination of both the
existing property management agreement with United Capital Corporation  (“Property Manager”),  and the leasing agreement with Colliers
International; (x) such transfer tax forms as are required by law, if any (the “Transfer Documents”);  (xi) assignments or transfers of Seller’s
rights to any security deposit that is not in the form of cash or the
reissuance of any letter of credit, as Purchaser shall elect in its sole
discretion by a written notice delivered to Seller before the Due Diligence
Period expires; (xii) originals, or if Seller does not possess originals,
copies, of all permits, warranties, and Leases in Seller’s possession; (xiii)
all keys, access

 3
 

codes, tenant files, and other similar items in Seller’s
possession and Property Manager’s possession; and (xiv) any evidence of Seller’s
power and authority to enter into this transaction that Title Insurer or
Purchaser reasonably requests. Seller and Purchaser may execute and deliver the
Joint Closing Statement and Escrow Agent’s Closing Statement by fax or by
emailed .pdf counterparts on the Closing Date. Seller shall make available for
pick-up by Purchaser at Property Manager’s Mountain View office, within a
reasonable time after the Closing Date, all of the original Leases and all
plans and specifications, contracts, licenses and permits pertaining to the
Property in Seller’s possession.

4.2          Purchaser’s Closing Deliveries. At
Closing, Purchaser shall deliver to Seller: (i) the Cash Balance; (ii) 2
executed counterpart originals of the General Assignment; (iii) one executed
counterpart of the Joint Closing Statement, (iv) one executed counterpart of
the Escrow Agent’s Closing Statement; (v) one original Notice to Tenant
executed by Purchaser and addressed to each tenant of the Property; and (vi)
any evidence of Purchaser’s power and authority to enter into this transaction
that Title Insurer or Seller reasonably requests.

4.3          Closing Prorations and Adjustments. Seller
shall prepare a statement of the prorations and adjustments required by this
Agreement (the “Joint Closing Statement”) and
submit it to Purchaser for approval at least 4 Business Days before the Closing
Date. The items listed below in this Section 4.3 are to be equitably prorated
or adjusted as of midnight on the day before the Closing Date, it being
understood that, for purposes of prorations and adjustments, Seller shall be
deemed the owner of the Property on the day immediately preceding the Closing
Date and Purchaser shall be deemed the owner of the Property for the full day
on the Closing Date.

4.3.1       Taxes. Real estate and
personal property taxes and assessments shall be prorated for the period for
which such taxes and assessments are assessed, regardless of when payable, on
the basis of the number of days in such period the Property will have been
owned by Seller and Purchaser, respectively. If the current tax bill is not
available at Closing, then the proration shall be made on the basis of the most
recent ascertainable tax bill. Any taxes paid at or before Closing shall be
prorated based upon the amounts actually paid. If taxes and assessments for the
fiscal year in which Closing occurs have been determined but have not been paid
before Closing, Seller shall be charged and Purchaser credited at Closing with
an amount equal to that portion of such taxes and assessments that relates to
the period before the Closing Date, and Purchaser shall pay the taxes and
assessments before they become delinquent. Seller shall be solely responsible
for the payment of all supplemental taxes levied, assessed, or otherwise
accrued by the Closing Date.

4.3.2       Rent. The “minimum” or “base”
rent payable by tenants under the Leases for the calendar month in which the
Closing occurs shall be prorated on the basis of the number of days of such
month the Property will have been owned by Purchaser and Seller, respectively.
However, there shall be no proration of any such rent that is delinquent as of
the Closing Date. Rather, Purchaser shall cause

 4
 

any such delinquent rent for the period before Closing
to be remitted to Seller if, as, and when collected. Additionally, there shall
be no proration of any rent that a tenant under a Lease delivers to either
Purchaser or Seller that said tenant has identified, at the time of such
delivery, as constituting payment of rent due for a month or other period of
time before Closing. If Purchaser receives any such rent, Purchaser shall cause
such rent to be remitted to Seller if, as, and when collected. At Closing,
Seller shall deliver to Purchaser a schedule of all such delinquent rent.
Purchaser shall include the amount of delinquent rent in the first bills its
submits to the applicable tenants after the Closing, and shall continue to do
so for the 2 following months. Purchaser shall promptly deliver to Seller a
copy of each such bill submitted to tenants. After such 2 month period, Seller
may pursue remedies directly against delinquent tenants, but may not sue to
evict or otherwise dispossess such tenants or to terminate any such tenant’s
lease.

4.3.3       Costs Relating To New Leases.
Any tenant improvement costs, leasing commissions or other leasing costs paid
or payable pursuant to any “New Lease” entered into in accordance with Section
10.3.1 of this Agreement shall be prorated over the term of such New Lease,
with Seller being responsible for a portion of such costs and commissions based
on the ratio of base rent payments received by Seller through the Closing Date
to the total base rent payable over the term of such New Lease.

4.3.4       Security Deposits; Utility Deposits.
Purchaser shall receive a credit at Closing in the amount of any unapplied cash
security deposits under the Leases. In addition, Seller shall assign, to the
extent assignable, and deliver to Purchaser at Closing any and all letters of
credit and other instruments held by Seller as security deposits under Leases.
Seller shall receive a credit at Closing in the amount of all refundable cash
or other deposits posted with utility companies servicing the Property that are
duly assigned to Purchaser at Closing. In the event any security or other
deposit is in the form of a bond or letter of credit, then, unless and until
Seller delivers to Purchaser either a fully executed assignment to Purchaser of
the beneficial interest under such bond or letter of credit together with the
bond or letter of credit issuer’s express written consent to such assignment or
a full replacement for such bond or letter of credit issued by the bond or
letter of credit issuer directly in favor of Purchaser, the amount of such bond
or letter of credit shall either be paid to Purchaser at the Closing or
credited against the Purchase Price, at Purchaser’s option.

4.3.5       Utilities. Water,
electric, telephone and all other utility and fuel charges, fuel on hand (at
cost plus sales tax), and any other payments to utility companies shall be
prorated. If possible, utility prorations will be handled by final meter
readings on the Closing Date. If final readings are not possible, or if any
such charges are not separately metered, such charges will be prorated based on
the most recent period for which costs are available.

4.3.6       Fees Payable.
Assignable license and permit fees, and similar fees and expenses of operation
shall be prorated.

 5
 

4.3.7       Tenant Inducement Costs and Leasing
Commissions. Purchaser shall pay all of the “Tenant
Inducement Costs”, as this Section defines that term, and leasing commissions
pursuant to any New Lease to the extent set forth in Section 4.3.3 above.
Seller shall pay all other Tenant Inducement Costs and leasing commissions
incurred or accruing before Closing. “Tenant
Inducement Costs” means any payments required under a Lease to be
paid by the landlord under that Lease to or for the benefit of the tenant that
is in the nature of a tenant inducement, including specifically, without
limitation, tenant improvement costs, lease buyout costs (other than those
accruing as a result of a buyout option executed by Purchaser after the Closing
Date, which buyout costs shall be Purchaser’s sole and exclusive
responsibility), moving, design, refurbishment and club membership allowances,
but specifically excluding legal fees or loss of income resulting from any free
rental period (Seller shall bear the loss resulting from any free rental period
before the Closing Date and Purchaser shall bear such loss from and after the
Closing Date). If, as of the Closing Date, Seller has not paid any Tenant
Inducement Costs or leasing commissions for which Seller is responsible under
this Section 4.3.7, at Closing, Purchaser shall be credited with an amount
equal to such Tenant Inducement Costs and leasing commissions and Purchaser
shall assume the obligation to pay them.

If any item of income or expense set forth in this
Section 4.3 is subject to final adjustment after Closing, then Seller and
Purchaser shall make, and each shall be entitled to, an appropriate reproration
to each such item promptly when accurate information becomes available, but in
no event later than 90 days after the end of the calendar year in which Closing
occurs. Any amounts due from one party to the other as a result of such
reproration shall be paid promptly in cash to the party entitled to that
amount. Seller and Purchaser shall make available to each other for review such
records as are necessary to complete such reprorations. This Section 4.3 shall
survive the Closing.

4.4          Tenant Reimbursements. Tenants
under the Leases are currently paying Seller certain amounts (“Tenant Reimbursements”) based on Seller’s
estimates for real estate taxes and assessments, common area maintenance,
operating expenses and similar expenses (collectively, “Tenant Reimbursable Expenses”).

4.4.1       For The Calendar Year of Closing. At
Closing, Tenant Reimbursements payable by tenants under the Leases for the
calendar month in which the Closing occurs shall be prorated on the basis of
the number of days of such month the Property will have been owned by Purchaser
and Seller, respectively. However, there shall be no proration of any such
Tenant Reimbursements that are delinquent as of Closing. Rather, Purchaser
shall use commercially reasonable efforts to cause any such delinquent Tenant
Reimbursements for the period before Closing to be remitted to Seller if, as,
and when collected. Additionally, there shall be no proration of any Tenant
Reimbursements that a tenant under a Lease delivers to either Purchaser or
Seller that said tenant has identified, at the time of such delivery, as
constituting payment of a Tenant Reimbursement due for a month or other period
of time before Closing. If Purchaser receives any such Tenant Reimbursements,

 6
 

Purchaser shall cause such Tenant Reimbursements to be
remitted to Seller if, as, and when collected. At Closing, Seller shall deliver
to Purchaser a schedule of all such delinquent Tenant Reimbursements. Purchaser
shall include the amount of delinquent Tenant Reimbursements in the first bills
Purchaser submits to the applicable tenants after Closing, and shall continue
to do so for the following 2 months. Purchaser shall promptly deliver to Seller
a copy of each such bill submitted to tenants. After such 2 month period,
Seller may pursue remedies directly against delinquent tenants, but may not sue
to evict or otherwise dispossess such tenants or to terminate any such tenant’s
lease.

Within 90 days
after the end of the calendar year in which Closing occurs, (i) Seller shall
determine the Tenant Reimbursements paid to Seller by tenants and the Tenant
Reimbursable Expenses incurred by Seller for the portion of the calendar year
in which the Closing occurs that Seller owned the Property, and (ii) Purchaser
shall determine the Tenant Reimbursements paid to Purchaser by tenants and the
Tenant Reimbursable Expenses incurred by Purchaser for the portion of the
calendar year in which the Closing occurs that Purchaser owned the Property. If
the amount of Tenant Reimbursements Seller collects for such year is less than
the amount of Tenant Reimbursable Expenses Seller paid for such year (or less
than the amount that Seller is entitled to recover under the terms of the
Leases), then Purchaser shall promptly remit the difference to Seller if, as
and to the extent such excess amounts are actually collected from the tenants,
but not otherwise. If the amount of Tenant Reimbursements Seller collected for
the calendar year in which the Closing occurs exceeds the amount of Tenant
Reimbursable Expenses Seller paid for such year (or greater than the amount
that Seller is entitled to recover under the terms of the Leases), then Seller
shall remit such excess amounts to Purchaser. Upon receipt of such excess
amounts, Purchaser shall promptly remit the applicable portion to each tenant
entitled to the excess amount. This Section 4.4.1 shall survive for a period of
2 years from the Closing Date.

4.4.2       For Prior Calendar Years.
Seller shall be responsible for the reconciliation with tenants of Tenant
Reimbursements and Tenant Reimbursable Expenses for any calendar year before
that in which the Closing occurs. If the amount of Tenant Reimbursements
collected by Seller for such prior years is less than the amount of Tenant
Reimbursable Expenses paid by Seller for such period (or less than the amount
that Seller is entitled to recover under the terms of the Leases), then Seller
shall be entitled to bill such tenants and retain any such amounts due from tenants.
If the amount of Tenant Reimbursements collected by Seller for such prior
calendar year exceeds the amount of Tenant Reimbursable Expenses paid by Seller
with respect to such period (or the amount that Seller is entitled to recover
under the terms of the Leases), then, to the extent required under the terms of
the Leases, Seller shall remit such excess amounts to the applicable tenants.
In connection with the foregoing, Seller shall be permitted to make and retain
copies of all leases and all billings concerning Tenant Reimbursements for such
prior years, and Purchaser covenants and agrees to provide Seller with
reasonable access to the books and records pertaining to such

 7
 

Tenant Reimbursements, and to otherwise cooperate with
Seller (at no cost to Purchaser) for the purpose of enabling Seller to
adequately respond to any claim by tenants for reimbursement of Tenant
Reimbursements previously paid by such tenants. This Section 4.4.2 shall
survive the Closing.

4.5           Reservation of Rights to
Contest.  Notwithstanding
anything to the contrary in this Agreement, Seller reserves the right to meet
with governmental officials and to contest all or any part of any reassessment
or assessment of the Property and to attempt to obtain a refund for any taxes
previously paid. Seller shall retain all rights with respect to any refund of
taxes applicable to any period before the Closing Date, subject to any rights
any tenants may have in such refund under the Leases.

4.6           Transaction Costs. Except
as otherwise specifically set forth in this Agreement, the closing costs and
other costs incurred in connection with the transactions contemplated by this
Agreement shall be paid as follows: (a) Seller shall pay (i) the CLTA portion
of the premium payable to the Title Insurer in connection with the issuance of
the ALTA Title Policy, (ii) all escrow fees payable to Escrow Agent, (iii) all
county transfer taxes, (iv) recording charges for the deed, and (v) one-half of
the city transfer tax; and (b) Purchaser shall pay (i) all title insurance
costs and fees for the ALTA Title Policy in excess of the cost of CLTA standard
owner’s coverage, including any for extended coverage, endorsements (provided,
Seller shall pay for all endorsements required by Title Insurer for the removal
of Title Objections or Additional Title Objections that Seller agreed to
remove), coinsurance or reinsurance, and any loan policy charges, (ii) all
transfer taxes, sales and use taxes, documentary stamps and intangible taxes
and similar taxes or charges, if any, except for the county transfer tax and
one-half of the city transfer tax, (iii) all recording charges, except
recording charges for the deed, (iv) all costs incurred in connection with
obtaining any Updated Survey, and (v) one-half of the city transfer tax. Seller
and Purchaser shall be responsible for the fees of their respective attorneys.

4.7           Reprorations. Notwithstanding anything
in this Agreement to the contrary, all reprorations this Agreement contemplates
shall be completed within 90 days after the end of the calendar year in which
Closing occurs. This Section 4.7 shall survive the Closing.

4.8           Delivery of Possession. Seller
shall tender possession of the Property to Purchaser at Closing, subject to the
rights of the tenants under the Leases. Purchaser shall make its own
arrangements for the provision of public utilities to the Property and Seller
shall terminate its contracts with such utility companies that provide services
to the Property.

5.             Casualty Loss and Condemnation. If,
before Closing, all or any part of the Property is condemned, destroyed, or
damaged by fire or other casualty, Seller shall promptly notify Purchaser. In
the event of a “Material Loss”, as this Section 5 defines that term, Purchaser
shall have the option to terminate this Agreement by giving notice to Seller
within 15 days after Seller’s request that the option be exercised but not
later than Closing. Purchaser shall not have the right to terminate this
Agreement as to any individual building comprising the improvements, but shall

 8
 

only have the right to terminate this Agreement in the
entirety. If the condemnation, destruction or damage does not result in a
Material Loss, then Seller and Purchaser shall close notwithstanding such
condemnation, destruction or damage. If the Closing occurs, (i) Purchaser shall
be entitled to receive any condemnation proceeds payable with respect to any
condemnation or proceeds of insurance under any policy(ies) of insurance
applicable to the destruction or damage of the Property including any rent loss
insurance proceeds, (ii) Purchaser shall receive a credit against the Purchase
Price equal to the amount of any deductible, self-insurance, or co-payment
amount under the policy(ies) of insurance applicable to the destruction or
damage, and (iii) Seller shall, at Closing, execute and deliver to Purchaser
all customary proofs of loss and other similar items. If Purchaser elects to
terminate this Agreement in accordance with this Section 5, Escrow Agent shall
return the Earnest Money to Purchaser and this Agreement shall, without further
action of the parties, become null and void and neither party shall have any
further rights or obligations under this Agreement except for any rights or
obligations that expressly survive a termination of this Agreement. “Material Loss” means condemnation, damage
or destruction that (a) would give tenants under Leases demising, in the
aggregate, more than 25,000 square feet of rentable floor area the right to
terminate their Leases (excluding any tenants who have, on or before the
Closing Date, waived the right to terminate), (b) would materially impair
access to, or parking at, the Property after the performance of all permitted
restorations and repairs, or (c) is reasonably estimated to cost or be valued
at (as the case may be) more than $250,000 per building comprising the
Improvements and $1,000,000 in the aggregate as to the Property.

6.             Brokerage.  Seller shall pay upon
Closing (but not otherwise) a brokerage commission due to CPS Realty Group,
Inc. (also known as CPS, a Commercial Real Estate Company, Inc.) for services
rendered in connection with the sale and purchase of the Property in accordance
with the terms of the separate written agreement between Seller and CPS Realty
Group, Inc. Seller and Purchaser shall each indemnify and hold the other
harmless from and against any and all claims of all other brokers and finders
claiming by, through or under the indemnifying party and in any way related to
the sale and purchase of the Property, this Agreement or otherwise, including,
without limitation, reasonable attorney fees and expenses incurred by the
indemnified party in connection with such claim. This Section 6 shall survive
the Closing or any termination of this Agreement.

7.             Default and Remedies.

7.1           Purchaser’s Remedies. Notwithstanding
anything to the contrary in this Agreement, if Closing does not occur due to a
Seller default, or if the conditions precedent to Purchaser’s obligation
specified in Section 9 of this Agreement are not satisfied after any applicable
notice and cure period. Purchaser may elect, as Purchaser’s sole and exclusive
remedy or recourse, to either: (a) terminate this Agreement by written notice
to Seller, in which case this Agreement shall be null and void, neither party
shall have any further rights or obligations under this Agreement, Escrow Agent
shall return the Earnest Money to Purchaser and, if Purchaser terminates
because of a Seller default (but not because of a condition precedent in
Section 9 is not satisfied), Purchaser shall be entitled to receive from Seller
Purchaser’s out-of-pocket expenses incurred in connection with this Agreement
and Purchaser’s due diligence investigations of the Property, but not to exceed
$175,000; or (b) seek specific performance by duly filing and commencing an
action within 30 days after the scheduled Closing Date. Except to the preceding
sentence

 9
 

expressly provides to the contrary, Purchaser is not
entitled to any damages for any default by Seller. Purchaser’s failure to file
and commence an action for specific performance within 30 days after the
scheduled Closing Date shall constitute its election of the remedy under clause
(a) above.

7.2           SELLER’S REMEDIES AND LIQUIDATED
DAMAGES. PURCHASER AND SELLER ACKNOWLEDGE THAT IT WOULD BE EXTREMELY
IMPRACTICAL AND DIFFICULT TO ASCERTAIN THE ACTUAL DAMAGES THAT SELLER WOULD
SUFFER IF PURCHASER FAILS TO CONSUMMATE THE PURCHASE AND SALE THIS AGREEMENT
CONTEMPLATES DUE TO PURCHASER’S DEFAULT UNDER THIS AGREEMENT. PURCHASER AND
SELLER HAVE CONSIDERED CAREFULLY THE LOSS TO SELLER OCCASIONED BY TAKING THE
PROPERTY OFF THE MARKET AS A CONSEQUENCE OF THE NEGOTIATION AND EXECUTION OF
THIS AGREEMENT, THE EXPENSES OF SELLER INCURRED IN CONNECTION WITH THE
PREPARATION OF THIS AGREEMENT AND SELLER’S PERFORMANCE UNDER THIS AGREEMENT,
AND THE OTHER DAMAGES, GENERAL AND SPECIAL, WHICH PURCHASER AND SELLER REALIZE
AND RECOGNIZE SELLER WILL SUSTAIN BUT WHICH SELLER CANNOT AT THIS TIME
CALCULATE WITH CERTAINTY. BASED ON ALL THOSE CONSIDERATIONS, PURCHASER AND
SELLER HAVE AGREED THAT THE DAMAGE TO SELLER IN SUCH EVENT WOULD REASONABLY BE
EXPECTED TO BE EQUAL TO THE SUM OF THE EARNEST MONEY. ACCORDINGLY, IF PURCHASER
FAILS TO CONSUMMATE THE PURCHASE OF THE PROPERTY DUE TO PURCHASER’S DEFAULT
(AND NOT DUE TO A FAILURE OF A CONDITION PRECEDENT), SELLER SHALL HAVE THE
RIGHT, AS ITS SOLE AND EXCLUSIVE REMEDY, TO RETAIN THE EARNEST MONEY AS FULL
AND COMPLETE LIQUIDATED DAMAGES. IF PURCHASER FAILS TO DEPOSIT THE EARNEST
MONEY AS OR WHEN THIS AGREEMENT REQUIRES, SELLER’S RIGHTS UNDER THIS SECTION
7.2 SHALL INCLUDE THE RIGHT TO SUE PURCHASER FOR AND COLLECT THE EARNEST MONEY.

THE PARTIES FURTHER ACKNOWLEDGE AND
AGREE THAT (A) PURCHASER SEEKS TO LIMIT ITS LIABILITY UNDER THIS AGREEMENT TO
THE AMOUNT OF THE EARNEST MONEY IN THE EVENT THIS AGREEMENT IS TERMINATED AND
THE TRANSACTION CONTEMPLATED BY THIS AGREEMENT DOES NOT CLOSE DUE TO A DEFAULT
OF PURCHASER UNDER THIS AGREEMENT (AND NOT DUE TO A FAILURE OF A CONDITION
PRECEDENT), AND (B) THE PAYMENT OF SUCH LIQUIDATED DAMAGES IS NOT INTENDED AS A
FORFEITURE OR PENALTY WITHIN THE MEANING OF CALIFORNIA CIVIL CODE SECTIONS 3275
OR 3369, BUT IS INTENDED TO CONSTITUTE LIQUIDATED

 10
 

DAMAGES TO SELLER PURSUANT TO
CALIFORNIA CIVIL CODE SECTIONS 1671,1676 AND 1677.

	
   

  	
  /s/ W.H.

  	
   

  	
   

  	
  /s/ D.A.

  	
   

  	
   

  
	
   

  	
  Seller’s
  initials

  	
   

  	
   

  	
  Purchaser’s initials

  	
   

  	
   

  

 

7.3           Post-Closing Remedies.
After Closing, Seller and Purchaser shall, subject to the terms and conditions
of this Agreement, have such rights and remedies as are available at law or in
equity, except that neither Seller nor Purchaser shall be entitled to recover
from the other consequential or special damages.

8.                                      Purchaser’s
Inspection.

8.1           Inspection.
Purchaser shall have until 3:00 p.m., San Francisco time on the 30th day after the Effective Date (the “Due Diligence Period”) within which to
inspect the Property and to inspect and review the “Due Diligence Materials”,
as Section 8.3 of this Agreement defines that term, and Seller’s books and
records pertaining to the operation and maintenance of the Property located in
Property Manager’s office, but not documents related to the valuation of the
Property or Seller’s acquisition, financing, or sale of the Property, or any
other confidential information of Seller or Property Manager. Seller disclaims
any representation or warranty about the completeness or accuracy of any book
or records it makes available to Purchaser for review. Purchaser’s right of
inspection pursuant to this Section 8.1 is and shall remain subject to the
rights of tenants under the Leases and other occupants and users of the
Property and Purchaser shall use reasonable efforts to minimize interference
with tenants and Seller’s operation of the Property. From and after the
Effective Date and subject to the terms of this Section 8.1, Purchaser and
Purchaser’s Representatives shall have the right to enter upon the Property at
all reasonable times to make and perform such evaluations, tests, inspections
and investigations of the physical condition of the Property as Purchaser may desire
and make inquiry of any persons in possession or occupancy of the Property. No
inspection shall be undertaken without 48 hours’ prior verbal notice to
Property Manager with a follow-up email to Seller and Property Manager. Seller
or Seller’s representative shall have the right to be present at any or all
inspections. Neither Purchaser nor its agents or representatives shall contact
any tenants without the prior consent of Seller, which will not be unreasonably
withheld or delayed. Before Purchaser enters the Property to perform any
inspections, Seller may require Purchaser to deliver to Seller a certificate
evidencing commercial general liability insurance with coverage of $1,000,000
per occurrence, $2,000,000 aggregate naming Seller as an additional insured
with respect to the Property. Such policy of insurance shall name Seller and
Seller’s property manager as additional insureds. Any such policy of insurance
may be carried under a blanket policy covering other parties and properties of
Purchaser. Purchaser shall permit Seller to participate in any such contact. No
inspection shall involve the taking of samples or other physically invasive
procedures without obtaining Seller’s express written consent to Purchaser’s
work plan, which consent Seller shall not unreasonably withhold. Upon the
completion of any inspection or test, Purchaser shall restore the Property to
its condition before such inspection or test. Purchaser shall not allow any
mechanic’s liens to be filed against the Property as the result of any
activities by Purchaser or any of its contractors or

 11
 

agents on or in connection with the Property (any such
lien being a “Purchaser Lien”). If
any Purchaser Lien is filed against the Property, Purchaser shall cause the
Purchaser Lien to be removed within 30 days after filing of the Purchaser Lien.
If Purchaser fails to remove any Purchaser Lien within such 30-day period,
Seller shall be entitled (but have no obligation) to take any action necessary
to remove any or all Purchaser Liens, including but not limited to, paying them
off in full, and Purchaser shall reimburse Seller, immediately upon demand, for
all of Seller’s costs and damages related to the Purchaser Liens, including but
not limited to Seller’s actual attorney fees. Notwithstanding Purchaser’s
rights to enter and inspect the Property in accordance with this Section 8.1,
for the purposes of any mechanic’s or other lien, no lienable work, materials,
or services provided to Purchaser or for Purchaser’s benefit has been
authorized by Seller or provided at Seller’s instance, and Seller will not be
responsible for any such lienable work, materials, or services.

8.2           Indemnification. Notwithstanding
anything to the contrary in this Agreement, Purchaser shall indemnify, defend
(with counsel reasonably acceptable to Seller) and hold Seller and its
employees, tenants and agents harmless from and against any and all loss, cost,
expense, liability, damage, cause of action or claim (including, without
limitation, attorneys’ fees) for property damage or personal injury arising out
of or resulting from the acts or omissions of Purchaser and/or “Purchaser’s
Representatives”, as Section 12.9 of this Agreement defines that term, in
connection with Purchaser’s exercise of its rights under this Agreement,
including, without limitation, its right of entry upon and inspection and
testing of the Property under Section 8.1 of this Agreement, and such indemnity
shall survive the Closing and any termination of this Agreement for a period of
one year; provided, however, in no event shall Purchaser be liable under this
Agreement as a result of (i) Purchaser’s discovery of any pre-existing
condition(s) affecting the Property (except and to the extent such pre-existing
condition(s) is/are exacerbated by entry onto and investigation of the Property
by Purchaser and/or Purchaser’s Representatives), (ii) any diminution in the
market value of the Property resulting from the information disclosed by any
such investigation or tests, or (iii) any claims or damages relating to the negligence
or willful misconduct of Seller.

8.3           Seller’s Delivery of Due Diligence
Materials. Within 3 Business Days after the Effective Date,
Seller shall deliver to Purchaser accurate copies of the Due Diligence
Materials listed on the Exhibit O attached
to this Agreement (the “Due Diligence Materials”),
together with an executed “Natural Hazard Disclosure Statement” in the form
attached to this Agreement as Exhibit N.
Seller disclaims any representation or warranty about the accuracy or
completeness of any statements or information in the Due Diligence Materials.
The information in the Natural Hazard Disclosure Statement is a disclosure only
for purposes of statutory compliance, and is compiled from and based solely on
the information sources identified in the Natural Hazard Disclosure Statement.
The delivery of the Natural Hazard Disclosure Statement is not intended to be
part of any contract between Seller and Purchaser, to limit or restrict in any
way Purchaser’s representations, warranties, agreements and releases in this
Agreement, or to give rise to any other rights in Purchaser under this
Agreement.

 12
 

8.4           Purchaser’s Right to Terminate. If
Purchaser determines, in its sole and absolute discretion, that the Property is
suitable for its purposes and wishes to proceed with the transaction, Purchaser
shall deliver written notice to Seller (the “Approval
Notice”)  at any time
before the expiration of the Due Diligence Period. If Purchaser fails to timely
deliver the Approval Notice, this Agreement shall automatically terminate and
be of no further force or effect and Escrow Agent shall return the Earnest
Money to Purchaser without further instruction or written approval from Seller
and neither party shall have any further rights or obligations under this Agreement
except those that expressly survive termination of this Agreement.

8.5           Estoppel Certificates and SNDAs. Seller
shall request from each tenant of the Property an estoppel certificate (an “Estoppel Certificate”)  in the form attached to this Agreement as Exhibit H (the “Form Tenant Estoppel Certificate”).  Seller shall also cooperate with Purchaser’s efforts to
obtain subordination, non-disturbance and attornment agreements (“SNDAs”) from the tenants under the Leases
in favor of Purchaser’s lender, but Seller shall have no obligation to
negotiate with tenants regarding any SNDAs or to incur any cost in so
cooperating with Purchaser’s efforts to obtain SNDAs, and Purchaser’s receipt
of any SNDAs shall not be a condition precedent to Purchaser’s obligation to close
under this Agreement. If any tenant is unwilling to execute and deliver an SNDA
or an Estoppel Certificate as a result of the SNDA, Seller may instruct such
tenant to only execute and deliver the Estoppel Certificate

9.             Purchaser’s Conditions Precedent. Following
expiration of the Due Diligence Period, Purchaser’s obligation to consummate
the purchase of the Property under this Agreement shall be subject to
satisfaction of all of the following:

9.1           Estoppel Certificates. Purchaser
shall have received, no later than 5 Business Days prior to the Closing Date
(the “Estoppel Delivery Date”),
Estoppel Certificates dated no more than 20 days before the
originally-scheduled Closing Date in the form this Section 9.1 specifies from
the tenants that Exhibit K lists
as the “Required Tenants”. If  Seller does not provide to Purchaser, on
or before the Estoppel Delivery Date, Estoppel Certificates for all Required
Tenants, Purchaser may, by written notice to Seller given on die Closing Date,
either (A) elect not to purchase the Property, in which event this Agreement
shall terminate and become null and void and Escrow Agent shall return the
Earnest Money to Purchaser and neither party shall have any further rights or
obligations under this Agreement except for those that expressly survive
termination of this Agreement, or (B) elect to purchase the Property
notwithstanding Seller’s failure to provide Estoppel Certificates with respect
to the Required Tenants, in which event Purchaser shall be deemed to have
waived the condition in this Section 9.1. If Purchaser fails to deliver such
written notice as described above, Purchaser shall be deemed to have elected
item (A) above. If any Estoppel Certificate contains statements or allegations
that a default or potential default exists on the part of Seller under the
Lease in question or contains information inconsistent with any representations
of Seller in this Agreement and Purchaser elects to close under this Agreement
notwithstanding the existence of such statements, allegations or information,
then such Estoppel Certificate shall be deemed acceptable for purposes of this
Section, notwithstanding the existence of such allegations, statements or
information, and Seller shall have no liability to Purchaser under or in

 13
 

connection with this Agreement with respect to the
existence of such allegations, statements or information.

9.2           Accuracy of Seller’s Representations
and Warranties. Each of Seller’s representations and
warranties set forth in Section 10.1 of this Agreement shall be materially true
and correct as of the Closing, as modified by any “Pre-Closing Disclosures”, as
Section 10.2 of this Agreement defines that term. Notwithstanding the
foregoing, if Seller makes a material Pre-Closing Disclosure to Purchaser
(excluding any Pre-Closing Disclosures that result from actions taken by Seller
that are permitted under Section 10.3 or otherwise under this Agreement),
Purchaser shall have the right to terminate this Agreement by delivering
written notice to Seller on or before the earlier of the Closing, or the 5th Business Day after Purchaser receives written
notice of such Pre- Closing Disclosure, in which event this Agreement shall
terminate and be of no further force or effect except for any rights or
obligations that expressly survive a termination of this Agreement and Escrow
Agent shall return the Earnest Money to Purchaser. If Purchaser does not
terminate this Agreement pursuant to its rights under this Section 9.2, then
such representations and warranties shall be deemed modified to conform them to
the Pre-Closing Disclosure.

9.3           Litigation. There
shall be no litigation or administrative agency or other governmental
proceeding of any kind whatsoever, pending or threatened, that after Closing
would, in Purchaser’s sole, absolute and subjective discretion, materially and
adversely affect the value of the Property or the ability of Purchaser to
develop and operate the Property as intended by Purchaser.

The conditions in this Section 9 are solely for the
benefit of Purchaser and may be waived only by Purchaser. Purchaser shall at
all times have the right to waive any condition. Any such waiver or waivers
shall be in writing and shall be delivered to Seller. If: (1) any of the
conditions precedent to the performance of Purchaser’s obligations this Section
9 specifies has not been satisfied, waived, or deemed waived by Purchaser on
the scheduled Closing Date, (2) Purchaser has given Seller written notice, on
or before the scheduled Closing Date, of the specific obligations or conditions
that Seller has failed to perform, or the conditions that remain unsatisfied,
and (3) those specific conditions or obligations remain unperformed, uncured,
or unsatisfied 5 Business Days after the scheduled Closing Date (and the
Closing Date shall be extended as necessary to give Seller such 5-business-day
period), then Purchaser may elect, as its sole and exclusive remedy or
recourse, to either terminate this Agreement or seek specific performance in
accordance with Section 7.1 of this Agreement.

10.          Representations, Warranties and
Covenants.

10.1        Seller’s Representations and Warranties.
Subject to Section 10.5 of this Agreement. Seller hereby
represents and warrants to Purchaser that, as of the Effective Date:

10.1.1        Organization and Authority. Seller
is duly-organized and in good standing under the laws of the state of its
organization and is qualified to transact business under the laws of the State
of California. Seller has the power

 14
 

and authority under its organizational documents to
sell, transfer, convey, and deliver the Property, and all required actions and
approvals have been duly taken and obtained. This Agreement and all documents
executed by Seller that are to be delivered to Purchaser at Closing are, and at
the time of Closing will be, duly authorized, executed and delivered by Seller.

10.1.2        No Conflict. The
execution and delivery of this Agreement, the consummation of the transactions
this Agreement provides for and the fulfillment of the terms of this Agreement
will not result in a breach of, or constitute a default under, Seller’s
organizational documents.

10.1.3        Condemnation. Seller
has not received from any governmental authority any written notice of any
condemnation of all or any part of the Property, nor, to Seller’s Knowledge, is
such a condemnation proceeding threatened.

10.1.4        Litigation. Except as
set forth on Exhibit J attached to
this Agreement, Seller has not been served with any litigation that is still
pending against Seller with respect to the Property or its ownership or operation
of the Property nor, to Seller’s Knowledge, is such litigation threatened.

10.1.5        Leases. There are no
leases or other agreements granting any right of occupancy or possession of the
Property, except for the Leases identified on the Exhibit K attached to this Agreement. Seller has delivered
accurate complete copies of the Leases to Purchaser. Seller has not sent or
received any written notice of a default under any Lease that has not been
cured or waived, and, to Seller’s Knowledge, there are no circumstances
existing that with the passage of time or the giving of notice or both would
result in a material default under any Leases. All security deposits required
to be deposited by tenants pursuant to the Leases are on deposit with Seller.

10.1.6        Brokerage Agreements.
There are no leasing brokerage agreements, leasing commission agreements or
other agreements providing for the payment of any amount for leasing activities
with respect to the Property except as set forth on the Exhibit L attached to this Agreement.

10.1.7        Violations. Seller has
not received from any governmental authority written notice of, nor does Seller
have any Knowledge of, any currently existing violation of any zoning,
building, fire, environmental or health code or any other statute, ordinance,
rule, regulation or order applicable to all or any part of the Property that
will not have been corrected before Closing.

10.1.8        ERISA. As of the
Effective Date, the Property is not “plan assets” within the meaning of 29
C.F.R. §2510.3-101, and Seller is not a “governmental plan” within the meaning
of Section 3(32) of the Employee Retirement Income Security Act of 1974, as
amended.

 15
 

10.1.9        No Bankruptcy. Seller
has not (a) made a general assignment for the benefit of creditors, (b) filed
any voluntary petition in bankruptcy or suffered the filing of any involuntary
petition by Seller’s creditors, (c) suffered the appointment of a receiver to
take possession of all, or substantially all, of Seller’s assets, (d) suffered
the attachment or other judicial seizure of all, or substantially all, of
Seller’s assets, (e) admitted in writing its inability to pay its debts as they
come due, or (f) made an offer of settlement, extension or composition to its
creditors generally,

10.2        Representations Remade. As
of Closing, Seller shall be deemed to remake and restate the representations
set forth in Section 10.1, except that the representations shall be updated by
delivering written notice to Purchaser in order to reflect any fact, matter, or
circumstance of which Seller’s representatives become aware that would make any
of Seller’s representations or warranties in this Agreement untrue or incorrect
(a “Pre-Closing Disclosure”).

10.3        Covenants.

10.3.1        New Leases. For
purposes of this Agreement, any Lease entered into after the Effective Date and
any modification, termination, amendment, restatement or renewal of any
existing Lease entered into after such date, shall be a “New Lease”. Seller shall not enter into
any New Lease (other than an amendment, restatement, modification or renewal of
any existing Lease required as a result of a tenant exercising a right granted
such tenant under such existing Lease) without Purchaser’s prior written
consent, which will not be unreasonably withheld or delayed. Seller shall use
good faith and diligent efforts to keep Purchaser apprised of any prospective
New Leases and terms being negotiated in connection therewith.

10.3.2        Contracts. Seller
shall, on or before the Closing Date, terminate all contracts and agreements
affecting the Property other than the Leases, without cost or expense to
Purchaser, effective on and as of the Closing Date. After the Effective Date,
Seller shall not, without first obtaining Purchaser’s written consent thereto,
enter into any contract or other agreement affecting the Property which would
survive the Closing.

10.3.3        Operations. Between
the Effective Date and the Closing Date, Seller shall (i) operate the Property
in the normal course of Seller’s business, (ii) maintain the Property in the
same condition as of the Effective Date, ordinary wear and tear excepted, and
subject to Section 5 of this Agreement, and (iii) continue to insure the
Property to the same extent it is currently insured on the Effective Date.
Notwithstanding anything in the preceding sentence to the contrary, in no event
shall Seller be required to make any capital repairs, replacements, or
improvements to the Property except as may be required by the Leases.

 16

10.3.4        Other Agreements. Between
the Effective Date and the Closing Date and except as required by law, Seller
shall not become party to agreements granting an easement, right-of-way or
license on, under or about the Property, and Seller shall not become party to
any agreements granting easements, rights-of-way or licenses in favor of the
Property or otherwise encumber, or grant interests in, the Property.

If Seller fails to perform any of its obligations
under this Section 10.3 and either Seller gives Purchaser written notice of
such failure before Closing or Purchaser otherwise becomes actually aware of
default by Seller under this Section 10.3 before Closing. Purchaser shall have
the rights and remedies available to Purchaser under Section 7.1 of this Agreement,
and if Purchaser elects to close and consummate the transaction contemplated by
this Agreement in lieu of exercising its rights and remedies under Section 7.1
of this Agreement, then such default by Seller shall be deemed to be waived by
Purchaser at the Closing, and to the extent such default by Seller is the
entering into by Seller of New Lease(s), or any other agreements in violation
of Section 10.3.1, or Section 10.3.4 of this Agreement, Purchaser shall at
Closing accept an assignment of Seller’s rights under such New Lease(s) or
other agreements and assume Seller’s obligations under such New Lease(s) or
other agreements that accrue with respect to any time after on or after the
Closing Date.

10.4        Purchaser’s Representations and
Warranties. Subject to Section 10.5 of this Agreement,
Purchaser represents and warrants that:

10.4.1
ERISA. Purchaser’s rights under this Agreement, the assets it
shall use to acquire the Property and, upon its acquisition by Purchaser, the
Property itself, do not and shall not constitute “plan assets” within the
meaning of 29 C.F.R. §2510.3-101, and Purchaser is not a “governmental plan”
within the meaning of section 3(32) of the Employee Retirement Income Security
Act of 1974, as amended.

10.4.2
Organization and Authority. Purchaser is duly-organized and
in good standing under the laws of the state of its organization and is
qualified to transact business under the laws of the State of California.
Purchaser has the power and authority under its organizational documents to
perform its obligations under this Agreement, and all required actions and
approvals have been duly taken and obtained.

10.4.3
No Conflict. The execution and delivery of this Agreement,
the consummation of the transactions this Agreement provides for and the
fulfillment of the terms of this Agreement will not result in a breach of, or
constitute a default under, any provision of Purchaser’s organizational
documents.

10.4.4
No  Bankruptcy. Purchaser
has not (a) made a general assignment for the benefit of creditors, (b) filed
any voluntary petition in bankruptcy or suffered the filing of any involuntary
petition by Purchaser’s creditors, (c) suffered 
the  appointment  of a 
receiver  to  take 
possession  of all, or

 17
 

substantially all, of Purchaser’s assets, (d) suffered
the attachment or other judicial seizure of all, or substantially all, of
Purchaser’s assets, (e) admitted in writing its inability to pay its debts as
they come due, or (f) made an offer of settlement, extension or composition to
its creditors generally.

10.5       Survival. Purchaser’s
right to enforce Seller’s representations and warranties in Section 10.1 of
this Agreement, subject to any modifications in any Pre-Closing Disclosure,
shall survive the Closing, but only as to claims that Purchaser (i) delivers
written notice of to Seller within 365 days after Closing (or such shorter
period of time to the extent Purchaser receives an Estoppel Certificate that
obviates any or all of Seller’s representations and/or warranties with respect
to any Lease in accordance with Section 8.2 above) and (ii) brings suit on
within 30 days after the expiration of such 365-day period, and not otherwise.
Seller’s right to enforce the representations and warranties set forth in
Section 10.4 shall survive the Closing, as to claims of which Seller notifies
Purchaser in writing within 365 days after Closing, and (ii) brings suit on
within 30 days after the expiration of such 365-day period, and not otherwise.

11.          Limitation of Liability. Notwithstanding
anything to the contrary in this Agreement, if the Closing has occurred and
Purchaser has not waived, relinquished or released any applicable rights in
further limitation, then (i) Seller’s aggregate liability arising pursuant to
or in connection with Seller’s representations, warranties, indemnifications,
covenants or other obligations (whether express or implied) under this
Agreement or any document executed or delivered in connection with this
Agreement or the Closing shall not exceed $950,000 in the aggregate (the “Liability Limitation”) and (ii) no claim
by Purchaser alleging a breach by Seller of any of Seller’s representations,
warranties, indemnifications, covenants, or other obligations under this
Agreement or in any document executed or delivered in connection with this
Agreement or the Closing may be made, and Seller shall not be liable for any
judgment in any action based upon any such claim, unless and until such claim,
either alone or together with any other claims by Purchaser against Seller
alleging a breach by Seller of any of Seller’s representations, warranties,
indemnifications, covenants or other obligation under this Agreement or in any
document executed or delivered in connection with this Agreement or the
Closing, is for an aggregate amount in excess of $50,000 (the “Floor Amount”), in which event Seller’s
liability respecting any final judgment concerning such claim or claims shall
be for the entire amount of the judgment, subject to the limitation set forth
in clause (i) above; provided, however, that if any such final judgment is for
an amount that is less than or equal to the Floor Amount, then Seller shall
have no liability with respect to such judgment; provided further that the
Floor Amount shall not apply to Seller’s liability either with respect to the
performance of Seller’s obligations under Sections 4.3,4.4, or 6. No
constituent partner or member in or agent of Seller, nor any advisor, trustee,
director, officer, member, partner, employee, beneficiary, shareholder,
participant, representative or agent of any entity that is or becomes a
constituent partner or member in Seller or an agent of Seller (including, but
not limited to, William K. Hoeg, John C. Scholz, the trustees of the William K.
Hoeg Revocable Trust U/A August 17, 1998, as amended, the trustees of the John
C. Scholz Revocable Trust U/A December 6, 1999, as amended, Whitewater Capital
5, LLC, ERP CFA LLC, Eagle Ridge Asset Management LLC, and Eagle Ridge Partners
LLC) (“Seller’s Affiliates”)  shall have any personal liability,
directly or indirectly, under or in connection with this Agreement or any
agreement made or entered into under or pursuant to this Agreement, or any
amendment or amendments to any of the foregoing

 18
 

made at any time or times, before or after the
Effective Date, and Purchaser and its successors and assigns and, without
limitation, all other persons and entities, shall look solely to Seller’s
assets for the payment of any claim or for any performance, and Purchaser, on
behalf of itself and its successors and assigns, hereby waives any and all such
personal liability. Notwithstanding anything to the contrary in this Agreement,
(i) to the extent Seller’s assets are not sufficient to pay any claim by
Purchaser under this Agreement, Purchaser shall be entitled to sue Seller’s
members to the extent of distributions Seller has made to such members of
proceeds of the sale of the Property, but Purchaser shall have no other claim
against, and hereby waives any other claim against, any member of Seller or any
person who indirectly owns any interest in Seller; and (ii) neither the
negative capital account of any member in Seller, nor any obligation of any
partner or member in any entity owning an interest (directly or indirectly) in
Seller to restore a negative capital account or to contribute capital to Seller
(or any entity owning an interest, directly or indirectly, in any other
constituent partner or member of Seller), shall at any time be deemed to be the
property or an asset of Seller or any such other partner or member (and neither
Purchaser nor any of its successors or assigns shall have any right to collect,
enforce or proceed against or with respect to any such negative capital account
of such party’s obligations to restore or contribute). This Section 11 shall
survive the Closing and any termination of this Agreement.

12.          Miscellaneous.

12.1        Entire Agreement. All  understandings  and agreements before the Effective Date
between Seller and Purchaser with respect to the Property are merged in this
Agreement, which alone fully and completely expresses the agreement of the
parties.

12.2        Assignment. Except as
Section 12.12 of this Agreement provides to the contrary, neither this
Agreement nor any interest under this Agreement shall be assigned or
transferred by Purchaser without Seller’s consent; provided, however, that no
such consent shall be required with respect to Purchaser’s assignment to an
entity that (i) is an affiliated or related entity or an entity that is wholly
owned and controlled, directly or indirectly, by Westcore Properties AC, LLC,
and (ii) delivers, on or before the date that is 2 Business Days before the
Closing Date, to Seller a duly-executed assumption of all of the duties and
obligations of Purchaser by the proposed assignee, substantially in the form of
Exhibit C; and provided further
that upon any such assignment this Section 12.2 permits, Purchaser shall remain
liable to Seller for the performance of the obligations of the “Purchaser”
under this Agreement. For the purpose of this Section 12.2, the term “control”
means the power to direct the management of such entity through voting rights,
ownership, or contractual obligations. Seller may assign or otherwise transfer
its interest under this Agreement; provided, however, that upon any such
assignment, Seller shall remain liable to Purchaser for the performance of the
obligations of the “Seller” under this Agreement and Seller shall be solely
responsible for the payment of all taxes and assessments incurred in connection
with such assignment, if any.  As used in
this Agreement, the term “Seller” shall be deemed to include any assignee or
other transferee of any Seller. Upon any such transfer by a Seller, such Seller
shall be relieved of any subsequently accruing liability under this
Agreement.  Subject to the foregoing,
this Agreement shall inure to the benefit of and shall be binding upon Seller
and Purchaser and their respective successors and assigns.

 19
 

12.3        Modifications. This
Agreement shall not be modified or amended except in a written document signed
by Seller and Purchaser.

12.4        Time of Essence. Time
is of the essence of this Agreement. In the computation of any period of time
provided for in this Agreement or by law, the day of the act or event from
which the period of time runs shall be excluded, and the last day of such
period shall be included, unless it is a Saturday, Sunday, or legal holiday, in
which case the period shall be deemed to run until the end of the next day that
is not a Saturday, Sunday, or legal holiday.

12.5        Governing Law. This
Agreement shall be governed and interpreted in accordance with the laws of the
State of California.

12.6        Notices. All notices,
requests, demands or other communications required or permitted under this
Agreement shall be in writing and delivered (i) personally, (ii) by certified
mail, return receipt requested, postage prepaid, (iii) by next Business Day
courier (such as Federal Express or UPS), or (iv) by email or fax, provided
that the sender also sends a confirmation copy by one of the preceding methods
in (i) through (iii) on the same day. All notices given in accordance with the
terms of this Section 12.6 shall be deemed given when received or upon refusal
of delivery. Either party may change its address for receiving notices,
requests, demands, or other communication by notice sent in accordance with the
terms of this Section 12.6.

	
  If to Seller:

  	
   

  	
  Concourse Fortune LLC

  
	
   

  	
   

  	
  c/o Eagle Ridge Partners LLC

  5753 Wayzata Boulevard

  Minneapolis, MN 55416

  
	
   

  	
   

  	
  Attention:

  	
  William K. Hoeg

  
	
   

  	
   

  	
  Telephone:

  	
  952-767-5556

  
	
   

  	
   

  	
  email:

  	
  willh@erpartners.com

  
	
   

  	
   

  	
   

  	
   

  
	
  with a copy to:

  	
   

  	
  Steven C. Cox

  
	
   

  	
   

  	
  Fabyanske, Westra, Hart & Thomson, PA

  Suite 1900

  800 LaSalle Avenue

  Minneapolis, MN 55402

  
	
   

  	
   

  	
  Direct:

  	
  612-359-7617

  
	
   

  	
   

  	
  Email:

  	
  SCox@FWHTlaw.com

  
	
   

  	
   

  	
   

  	
   

  
	
  If to Purchaser:

  	
   

  	
  Donald H. Ankeny

  
	
   

  	
   

  	
  Westcore Properties, LLC

  Suite 210

  4445 Eastgate Mall

  San Diego, CA 92121

  
	
   

  	
   

  	
  Direct:

  	
  (858) 625-4100

  
	
   

  	
   

  	
  Email:

  	
  dankeny@ westcore.net

  

 

 20
 

 

	
  with a copy to:

  	
   

  	
  Diane Robertson

  
	
   

  	
   

  	
  Westcore Properties, LLC

  Suite 210

  4445 Eastgate Mall

  San Diego, CA 92121

  
	
   

  	
   

  	
  Direct:

  	
  (858) 625-4100 ext. 223

  
	
   

  	
   

  	
  Email:

  	
  drobertson@westcore.net

  
	
   

  	
   

  	
   

  	
   

  
	
  and with a copy to:

  	
   

  	
  Bonnie Frank

  
	
   

  	
   

  	
  Real Estate Law Group, LLP

  Marina Office Plaza

  2330 Marinship Way, Suite 211

  Sausalito, CA 94965

  
	
   

  	
   

  	
  Direct:

  	
  415-331-2555

  
	
   

  	
   

  	
  Email:

  	
  bfrank@RELG.com

  

 

12.7        “AS IS” SALE. ACKNOWLEDGING THE PRIOR
USE OF THE PROPERTY AND PURCHASER’S OPPORTUNITY TO INSPECT THE PROPERTY,
PURCHASER AGREES, SUBJECT TO THE REPRESENTATIONS AND WARRANTIES SET FORTH IN
SECTION 10.1 ABOVE, TO TAKE THE PROPERTY “AS-IS,” “WHERE-IS,” AND WITH ALL
FAULTS AND CONDITIONS. ANY INFORMATION, REPORTS, STATEMENTS, DOCUMENTS OR
RECORDS (COLLECTIVELY, THE “DISCLOSURES”) PROVIDED OR MADE TO PURCHASER OR ITS
CONSTITUENTS BY SELLER OR ANY OF SELLER’S AFFILIATES CONCERNING THE CONDITION
OF THE PROPERTY SHALL NOT BE REPRESENTATIONS OR WARRANTIES. PURCHASER SHALL NOT
RELY ON SUCH DISCLOSURES, BUT RATHER, PURCHASER SHALL RELY ONLY ON ITS OWN
INSPECTION OF THE PROPERTY. PURCHASER ACKNOWLEDGES AND AGREES THAT, SUBJECT TO
THE REPRESENTATIONS AND WARRANTIES SET FORTH IN SECTION 10.1 ABOVE, SELLER HAS
NOT MADE, DOES NOT MAKE AND SPECIFICALLY DISCLAIMS ANY REPRESENTATIONS,
WARRANTIES, PROMISES, COVENANTS, AGREEMENTS OR GUARANTIES OF ANY KIND OR
CHARACTER WHATSOEVER, WHETHER EXPRESS OR IMPLIED, ORAL OR WRITTEN, PAST,
PRESENT OR FUTURE, OF, AS TO, CONCERNING OR WITH RESPECT TO (A) THE NATURE,
QUALITY OR CONDITION OF THE PROPERTY, INCLUDING, WITHOUT LIMITATION, THE WATER,
SOIL AND GEOLOGY; (B) THE INCOME TO BE DERIVED FROM THE PROPERTY, (C) THE
SUITABILITY OF THE PROPERTY FOR ANY AND ALL ACTIVITIES AND USES THAT PURCHASER
MAY CONDUCT ON THE PROPERTY, (D) THE COMPLIANCE OF OR BY THE PROPERTY OR ITS
OPERATION WITH ANY LAWS, RULES, ORDINANCES OR REGULATIONS OF ANY APPLICABLE
GOVERNMENTAL AUTHORITY OR BODY; (E) THE HABITABILITY, MERCHANTABILITY OR
FITNESS FOR A PARTICULAR PURPOSE OF THE PROPERTY; OR (F) ANY OTHER MATTER WITH
RESPECT TO THE PROPERTY, AND SPECIFICALLY DISCLAIMS

 21
 

ANY REPRESENTATIONS REGARDING
TERMITES OR HAZARDOUS WASTES, AS DEFINED BY THE U.S. ENVIRONMENTAL PROTECTION
AGENCY REGULATIONS AT 40 C.F.R., OR ANY HAZARDOUS SUBSTANCE, AS DEFINED BY THE
COMPREHENSIVE ENVIRONMENTAL RESPONSE COMPENSATION AND LIABILITY ACT OF 1980 (“CERCLA”),
AS AMENDED, AND REGULATIONS PROMULGATED THEREUNDER. EXCLUDING ANY CLAIM THAT
THIS AGREEMENT EXPRESSLY PERMITS PURCHASER TO PURSUE AGAINST SELLER AS A RESULT
OF ANY BREACH BY SELLER OF ANY OF SELLER’S REPRESENTATIONS OR WARRANTIES SET
FORTH IN THIS AGREEMENT OR THE CLOSING DOCUMENTS, PURCHASER, ITS SUCCESSORS AND
ASSIGNS, HEREBY WAIVE, RELEASE AND AGREE NOT TO MAKE ANY CLAIM OR BRING ANY
COST RECOVERY ACTION OR CLAIM FOR CONTRIBUTION OR OTHER ACTION OR CLAIM AGAINST
SELLER OR SELLER’S AFFILIATES BASED ON (I) ANY FEDERAL, STATE, OR LOCAL
ENVIRONMENTAL OR HEALTH AND SAFETY LAW OR REGULATION, INCLUDING CERCLA OR ANY
STATE EQUIVALENT, OR ANY SIMILAR LAW NOW EXISTING OR HEREAFTER ENACTED, (II)
ANY DISCHARGE, DISPOSAL, RELEASE, OR ESCAPE OF ANY CHEMICAL, OR ANY MATERIAL
WHATSOEVER, ON, AT, TO, OR FROM THE PROPERTY, OR (III) ANY ENVIRONMENTAL
CONDITIONS WHATSOEVER ON, UNDER, OR IN THE VICINITY OF THE PROPERTY. THE
PROVISIONS OF THIS SECTION 12.7 SHALL SURVIVE THE CLOSING AND ANY TERMINATION
OF THIS AGREEMENT.

PURCHASER
REPRESENTS TO SELLER THAT PURCHASER HAS CONDUCTED, OR WILL CONDUCT BEFORE
CLOSING, SUCH INVESTIGATIONS OF THE PROPERTY, INCLUDING, BUT NOT LIMITED TO,
THE PHYSICAL AND ENVIRONMENTAL CONDITIONS OF THE PROPERTY, AS PURCHASER DEEMS
NECESSARY OR DESIRABLE TO SATISFY ITSELF AS TO THE CONDITION OF THE PROPERTY
AND THE EXISTENCE OR NONEXISTENCE OR CURATIVE ACTION TO BE TAKEN WITH RESPECT
TO ANY HAZARDOUS OR TOXIC SUBSTANCES ON OR DISCHARGED FROM THE PROPERTY, AND
WILL RELY SOLELY UPON SAME AND NOT UPON ANY INFORMATION PROVIDED BY OR ON
BEHALF OF SELLER OR ITS AGENTS OR EMPLOYEES. UPON CLOSING, BUT SUBJECT TO AND
EXCLUDING ANY CLAIM THAT THIS AGREEMENT EXPRESSLY PERMITS PURCHASER TO PURSUE
AGAINST SELLER AS A RESULT OF ANY BREACH BY SELLER OF ANY OF SELLER’S
REPRESENTATIONS OR WARRANTIES SET FORTH IN THIS AGREEMENT OR THE CLOSING
DOCUMENTS, PURCHASER SHALL ASSUME THE RISK THAT ADVERSE MATTERS, INCLUDING BUT
NOT LIMITED TO, CONSTRUCTION DEFECTS AND ADVERSE PHYSICAL AND ENVIRONMENTAL
CONDITIONS, MAY NOT HAVE BEEN REVEALED BY PURCHASER’S INVESTIGATIONS, AND
PURCHASER, UPON CLOSING, SHALL BE DEEMED TO HAVE WAIVED, RELINQUISHED AND
RELEASED SELLER (AND SELLER’S AFFILIATES) FROM AND AGAINST ANY AND ALL CLAIMS,
DEMANDS, CAUSES OF ACTION (INCLUDING CAUSES OF

 22
 

ACTION IN TORT), LOSSES, DAMAGES,
LIABILITIES, COSTS AND EXPENSES (INCLUDING ATTORNEYS’ FEES) OF ANY AND EVERY
KIND OR CHARACTER, KNOWN OR UNKNOWN, WHICH PURCHASER MIGHT HAVE ASSERTED
OR ALLEGED AGAINST SELLER (AND SELLER’S AFFILIATES) AT ANY TIME BY REASON OF OR
ARISING OUT OF ANY LATENT OR PATENT CONSTRUCTION DEFECTS OR PHYSICAL
CONDITIONS, VIOLATIONS OF ANY APPLICABLE LAWS AND ANY AND ALL OTHER ACTS,
OMISSIONS, EVENTS, CIRCUMSTANCES OR MATTERS REGARDING THE PROPERTY.

PURCHASER
EXPRESSLY WAIVES ALL RIGHTS UNDER CALIFORNIA CIVIL CODE SECTION 1542, AS
AMENDED OR MODIFIED, WHICH PROVIDES THAT:

“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 BY HIM OR HER MUST HAVE
MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR.”

PURCHASER
HEREBY SPECIFICALLY ACKNOWLEDGES THAT PURCHASER HAS CAREFULLY REVIEWED THIS
SUBSECTION, AND DISCUSSED ITS IMPORT WITH LEGAL COUNSEL, IS FULLY AWARE OF ITS
CONSEQUENCES, AND THAT THE PROVISIONS OF THIS SUBSECTION ARE A MATERIAL PART OF
THIS AGREEMENT; PROVIDED, HOWEVER, SUCH RELEASE, WAIVER OR DISCHARGE SHALL NOT
APPLY AND SHALL BE OF NO FORCE OR EFFECT FOR ANY CLAIMS ARISING OUT OF SELLER’S
FRAUD.

	
  

  	
  /s/ W.H.

  	
   

  	
  /s/ D.A.

  	
   

  
	
   

  	
  Seller’s initials

  	
   

  	
  Purchaser’s initials

  	
   

  

 

12.8        Trial by Jury; Rescission. In
any lawsuit or other proceeding initiated by either party under or with respect
to this Agreement, each of Seller and Purchaser waives, to the fullest extent
now or hereafter permitted by law, any right it may have to a trial by jury.
Also, Purchaser waives any right to seek rescission of the transaction provided
for in this Agreement.

12.9        Confidentiality.
Except as may be required by law, without the prior written consent of Seller,
and unless the Closing occurs, Purchaser shall not disclose to any third party
the existence of this Agreement or any of its terms or conditions or the
results of any inspections or studies undertaken in connection with its
prospective purchase of the Property or make any public pronouncements, issue
any press releases or otherwise furnish the “Information”, as this Section
defines that term, or any information regarding this Agreement, or the
transactions this Agreement contemplates to any third party; provided, however,
that the foregoing shall not be construed to prevent Purchaser

 23
 

from making any disclosure (a) required by any
applicable law or regulation or judicial process, provided that Purchaser shall
give Seller written notice before making any such disclosure, (b) for
discussion with Purchaser’s Representatives, and (c) as needed to carry out the
obligations of the parties hereunder, including, in the case of Purchaser,
arranging equity and/or loan financing for the Property. For the purposes of
this Section 12.9, “Information”
shall mean and shall be deemed to include, without limitation, the following
written or oral information provided by or on behalf of Seller to Purchaser,
its employees, agents and representatives, lenders, attorneys, contractors,
engineers, other consultants, and prospective partners (collectively, “Purchaser’s Representatives”) to the extent such disclosure
is necessary or desirable for Purchaser to exercise its rights or perform its
obligations under this Agreement, either before or after the Effective Date:
(i) all documentation and/or information described in or relating to Section 1
of this Agreement, including, without limitation, Leases, Tangible Personal
Property, and all other information regarding the operation, ownership,
maintenance, management, or occupancy of the Property; (ii) the Existing
Surveys; and (iii) any reports, tests, or studies (together with the results of
such studies and tests obtained or provided by, or on behalf of, Seller).

Notwithstanding the
foregoing, Seller’s delivery and Purchaser’s use of the Information are subject
to the following terms: Purchaser shall (i) accept and hold all Information in
strict confidence in accordance with the terms of this Agreement; (ii) not
copy, reproduce, distribute or disclose the Information to any third party
other than Purchaser’s Representatives, except as permitted in the preceding
paragraph; (iii) not use the Information for any purpose other than in
connection with the transactions this Agreement contemplates; and (iv) not use
the Information in any manner detrimental to Seller or the Property.

12.10      Reports. If for any
reason Purchaser does not consummate the Closing, then Purchaser shall, upon
Seller’s written request, assign and transfer to Seller all of its right, title
and interest in and to any and all studies, reports, surveys and other
information, data and/or documents relating to all or any part of the Property
prepared by third parties at the request of Purchaser, its employees and
agents, and shall deliver to Seller copies of all of the foregoing. All such
materials shall be delivered to Seller without any representation or warranty
as to the accuracy or completeness thereof or any other matter relating
thereto, and Seller shall have no right to rely on any such materials without
the written consent of the party preparing the same.

12.11      Reporting Person. Seller
and Purchaser hereby designate Escrow Agent to act as and perform the duties
and obligations of the “reporting person” with respect to the transaction
contemplated by this Agreement for purposes of 26 C.F.R. Section 1.6045-4(e)(5)
relating to the requirements for information reporting on real estate
transaction closed on or after January 1, 1991. Seller and Purchaser each agree
to execute at Closing, and to cause Escrow Agent to execute at Closing, a
Designation Agreement, designating Escrow Agent as the reporting person with
respect to the transaction contemplated by this Agreement.

 24
 

12.12      Section 1031 Exchange. Either
party may structure the disposition or acquisition of the Property, as the case
may be, as a like-kind exchange under Internal Revenue Code Section 1031 at the
exchanging party’s sole cost and expense. The other party shall reasonably
cooperate, provided that such other party shall incur no material costs,
expenses, or liabilities in connection with the exchanging party’s exchange. If
either party uses a qualified intermediary to effectuate an exchange, any
assignment of the rights or obligations of such party shall not relieve,
release, or absolve such party of its obligations to the other party. The
exchanging party shall indemnify, defend, and hold harmless the other party
from all liability in connection with the indemnifying party’s exchange, and
the indemnified party shall not be required to take title to or contract for
the purchase of any other property. This Section 12.12 shall survive the
Closing.

12.13      Press Releases. Notwithstanding
anything to the contrary in this Agreement, upon or after the Closing, neither
Seller nor Purchaser may issue a press release with respect to the transactions
contemplated hereby or consummated in accordance with the terms of this
Agreement except upon the mutual agreement of the parties as to the form and
content of such press release (with consent not to be unreasonably withheld,
conditioned, or delayed by either party).

12.14      Counterparts. This
Agreement may be executed in any number of identical counterparts, any or all
of which may contain the signatures of less than all of the parties, and all of
which shall be construed together as a single instrument.

12.15      Construction. This
Agreement shall not be construed more strictly against Seller merely by virtue
of the fact that Seller’s counsel prepared this Agreement, as both Seller and
Purchaser have contributed substantially and materially to the preparation of
this Agreement.

12.16      Attorney Fees. In  the event of litigation between the
parties with respect to this Agreement or the transaction this Agreement
contemplates, the prevailing party shall be entitled to recover from the losing
party all of its costs of enforcement and litigation, including, but not
limited to, its attorney and paralegal fees, witness fees, court reporter fees
and other costs of suit.

12.17      Post-Closing Cooperation. After
the Closing, each of Seller and Purchaser shall provide any cooperation the
other requests, at reasonable times and on reasonable conditions, and shall
execute and deliver any instruments or documents necessary to fully carry out
the intent and purposes of the transactions this Agreement contemplates, but
only to the extent it will not incur any additional cost or liability as a
result. This Section 12.17 shall survive the Closing.

12.18      Business Day. “Business Day” means
any day that is not a Saturday, Sunday, or legal holiday. If the Closing Date,
the Estoppel Delivery Date, the date on which the Due Diligence Period expires,
or any other date that is a deadline for any performance or action by Seller or
Purchaser under this Agreement would fall on a day that is not a Business Day,
then that date shall be the next Business Day.

 25
 

Seller and Purchaser hereby execute and deliver this
Real Estate Sale Agreement as of the Effective Date.

	
  SELLER:

  	
  Concourse Fortune Associates LLC,

  a Delaware limited liability company

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ William K. Hoeg

  
	
   

  	
  Name:

  	
  William K. Hoeg

  
	
   

  	
  Title:

  	
  Manager

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  PURCHASER:

  	
  Westcore Properties AC, LLC,

  a Delaware limited liability company

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Donald Ankeny

  
	
   

  	
  Name:

  	
  Donald Ankeny

  
	
   

  	
  Title:

  	
  President

  

 

CONSENT AND
ACKNOWLEDGEMENT OF ESCROW AGENT

The undersigned, on
behalf of First American Title Insurance Company, agrees to be bound by the
terms of the Real Estate Sale Agreement between Concourse Fortune Associates
LLC and Westcore Properties AC, LLC dated March 22,  2007, to which this Consent and Acknowledgement of Escrow
Agent is attached.

	
  First American Title Insurance Company

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Heather
  Kucak

  	
   

  
	
  Name:

  	
  Heather Kucak

  	
   

  
	
  Its:

  	
  Escrow Officer

  	
   

  

 

 26
 

LIST OF EXHIBITS

A                                      Legal
Description

B                                        List
of Tangible Personal Property

C                                        Form
of Purchaser’s Assignment Agreement

D                                       Intentionally
Deleted

E                                         Bill
of Sale

F                                         Notice
to Tenants

G                                        Non-Foreign
Affidavit

H                                       Form
Tenant Estoppel Certificate

I                                            Intentionally
Deleted

J                                           Litigation
Matters

K                                       List
of Leases

L                                         List
of Brokerage Agreements and Leasing Commission Agreements

M                                    General
Assignment

N                                       Natural
Hazard Disclosure Statement

O                                       List
of Due Diligence Materials

 27

EXHIBIT A

Legal Description

All that certain Real Property in the City of
San Jose, County of Santa Clara, State of California, described as follows:

All of Parcel 24, as shown on that certain Map
entitled, “Parcel Map of International Business Park,” which Map was filed in
the Office of the Recorder of the County of Santa Clara, State of California on
January 28, 1977, in Book 388 of Maps, Page(s) 16 through 27.

Excepting therefrom that portion thereof lying
below a depth of 500 feet measured vertically from the contour of the surface
of said property, with no right of any purposes whatsoever to enter upon into
or through the surface of said property or any part thereof lying between said
surface and 500 feet below said surface, as reserved in the Deed recorded May
24, 1978 in Book D691, Page 67, Santa Clara County Records.

Parcels 1, 2 and 3, as shown on that Parcel Map filed for record in the
Office of the Recorder of the County of Santa Clara, state of California on September 3,
1982, in Book 504 of Maps, Page(s) 18 and 19.

 A-1

All that certain Real Property in the City of San Jose, County of Santa
Clara, State of California, described as follows:

PARCEL ONE:

Parcel B, as shown on that certain Parcel Map filed for record December
30, 1980 in the Office of the Recorder, County of Santa Clara, State of
California in Book 477 of Maps, at Page 54.

PARCEL TWO :

That portion of the following described Parcel lying Southerly of the
Northerly line of Fortune Drive as said Drive is shown on Record of Survey
Lands proposed for Street Purposes, which Record of Survey was filed for record
in April 1, 1975 in Book 353 of Maps, at Page 43, Santa Clara County Records;

A right of way 40 feet wide described in the Deed from A.K. Whitton, et
ux, to Manuel Vierra, dated March 26, 1907 recorded March 26, 1907 in Book 314
of Deeds, Page 216 and granted by A.K. Whitton, et ux, to Manuel A. Silva, by
Deed dated January 24, 1910 recorded January 29, 1910 in Book 363 of Deeds,
Page 371, as follows:

Beginning at a point in the Northeasterly line of that certain 11,926
acre tract of land described in the Deed from Maria Coalho to Jacinto S.
Siquig, et ux, recorded under Recorder’s File No. 845348, Santa Clara County
Records, distant thereon South 38 deg. 35’ East 176.94 feet from the
Northernmost corner thereof, thence following the centerline of said 40 foot
right of way so described in the Deed to said Vierra above referred to for the
two following courses and distances: 
North 38 deg. 35’ West 189.42 feet to a 2”x3” stake and North 25 deg 35’
West 1442.66 feet to a railroad spike set in the centerline of Trimble Road and
the terminus of said easement.

PARCEL THREE:

An Easement for ingress and egress and Public Utilities, appurtenant to
the above described Parcel One, over the following described 30 foot strip of
land:

Beginning at an iron pipe set at the most Northerly corner of that
certain 6.742 acre tract of land hereinabove described as Parcel One; thence
along the Northeasterly line of said 6.742 acre tract, South 38 deg. 35’ East
30.91 feet to an iron pipe; thence North 37 deg. 30’ 40” East 89.52 feet to an
iron pipe; thence North 51 deg. 34’ 50” East 254.396 feet to an iron pipe in
the Northeasterly line of that certain 11.926 acre tract of land described in
the Deed from Maria Coelho to Jacinto S. Siquig, et ux, recorded under Recorder’s
File No. 845348, Santa Clara County Records; thence along last mentioned line,
North 38 deg. 53’ West 30.00 feet to an iron pipe; thence South 51 deg. 34’ 50”
West 258.00 feet to an iron pipe; thence South 37 deg. 30’ 40” West 85.80 feet
to the point of beginning.

PARCEL FOUR:

An Easement for the installation and maintenance of a water pipe line,
appurtenant to the above described Parcel One, over a strip of land 10.00 feet
in width, the centerline of which is described as follows:

Beginning at a stake set in the Northeasterly line of that certain
6.742 acre tract of land hereinabove described as Parcel One, distant thereon
North 38 deg. 35’ West 43.98 feet from an iron pipe at the most Easterly corner
of said 6.742 acre tract; thence North 58 deg. 30’ East 301.47 feet to an
existing well and the terminus of said Easement.

Together with the right to withdraw and use such quantities of water
from the existing well located at the terminus of said easement, as may be
reasonably necessary for Grantee’s business need.

PARCEL FIVE:

A non-exclusive easement for the installation and maintenance of
electrical power facilities, appurtenant to the above described Parcel One,
over the following described Parcel of Land:

Commencing at a railroad spike in the centerline of Trimble Road at the
Northwesterly terminus of the centerline of the 40 foot wide right of way shown
on Record of Survey Map, recorded in Book 115 of Maps, Page 40, Santa Clara
County Records; thence along said centerline of right of way, South 25 deg. 35’
East 1442.66 feet to a 2”x3” stake, and South 38 deg. 35’ East 12.48 feet to an
iron pipe at the most Northerly corner of that certain 11.926 acre tract
described in Deed, Maria Coelho to Jacinto S. Siquig, et ux, recorded under
Recorder’s File No. 845348, Santa Clara County Records; thence along the
boundaries of said 11,926 acre tract, South 51 deg. 34’ 50” West 341.72 feet to
an iron pipe, South 73 deg. 02’ East 147.99 feet to an iron pipe and the true
point of beginning of the easement to be described thence from said true Point
of Beginning North 73 deg. 02’ West 20.00 feet; thence North 16 deg. 58’ East
10.00 feet; thence South 73 deg. 02’ East 26.90 feet to the Northwesterly line
of a 30 foot easement hereinabove described; thence South 51 deg. 34’ 50” West
along said last mentioned line for a distance of 12.15 feet to the True Point
of Beginning.

PARCEL SIX:

A non-exclusive easement for the installation and maintenance of
electrical power facilities, appurtenant to the above described Parcel One,
over the following described Parcel of Land:

Beginning at an iron pipe set in the Northeasterly line of that certain
6.742 acre trac of land hereinabove described as Parcel One, distant thereon
South 38 deg. 35’ East 30.91 feet from the Northermost corner thereof; thence
from said Point of Beginning South 38 deg. 35’ East along the Northeasterly
line of said 6.742 acre tract for a distance of 50.00 feet to an iron pipe;
thence North 11 deg. 57’ 50” East 112.54 feet to an iron pipe set in the
Southeasterly line of the hereinabove described 30 foot easement; thence South
37 deg. 30’ 40” West along said last mentioned line for a distance of 89.52
feet to the Point of Beginning.

PARCEL SEVEN:

Parcel A as shown on that certain Parcel Map filed for record December
30, 1980 in the Office of the Recorder, County of Santa Clara, State of
California in Book 477 of Maps, at Page 54.

EXHIBIT B

List
of Tangible personal Property

None.

 B-1

EXHIBIT C

Form of Purchaser’s Assignment Agreement

THIS ASSIGNMENT OF REAL ESTATE SALE AGREEMENT (this “Assignment”)
is dated as of                              ,
2007 (the  “Assignment  Date”), by 
and  between  WESTCORE PROPERTIES AC, LLC, a Delaware limited
liability company (“Assignor”), and                             ,
a Delaware limited liability company (“Assignee”).

A.            Assignor and                             ,
a Delaware limited liability company (“Seller”), entered into that certain Real
Estate Sale Agreement, dated as of                             ,
2007 (the “Purchase Agreement”), wherein Seller agreed to sell and Assignor
agreed to purchase improved real property located at                                                             ,
all in San Jose, California, and certain other interests (as more particularly
described in the Purchase Agreement as the “Property”).

B.            Assignor desires to assign all of
its right, title, and interest in and to the Property under the Purchase
Agreement to Assignee, effective as of the Assignment Date.

C.            Assignee desires to accept such
assignment and assume all of Assignor’s rights, duties, obligations, and
liabilities under the Purchase Agreement with respect to the Property
(collectively the “Obligations”), on the terms and provisions set forth herein.

NOW,
THEREFORE, in consideration of the mutual promises herein
contained and other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties hereto agree as
follows:

1.             Definitions. Unless
otherwise defined in this Assignment, all capitalized terms used herein shall
have the meanings ascribed to them in the Purchase Agreement.

2.             Assignment. Assignor hereby
transfers, assigns, and sets over to Assignee, its successors and assigns, all
of Assignor’s right, title, and interest in, to, and under the Purchase
Agreement with respect to the Property.

3.             Assumption.  Assignee hereby agrees and confirms that
effective as of the Assignment Date, (i) Assignee has assumed all of the
Obligations, and is presently bound by all conditions and agreements applicable
to Assignor, under and with respect to the Purchase Agreement, and (ii)
Assignee hereby expressly ratifies and reaffirms all of the covenants,
representations and indemnities of Assignor set forth in the Purchase
Agreement.

4.             Delivery to Seller. After
the mutual execution hereof by the parties, Assignor shall promptly deliver to
Seller a copy of this fully-executed Assignment,

5.             Severability. If for any
reason, any provision of this Assignment shall be held to be unenforceable, it
shall not affect the validity or enforceability of any other provision of this

 C-1
 

Assignment and to the
extent any provision of this Assignment is not determined to be unenforceable,
such provision, or portion thereof, shall be, and remain, in full force and
effect.

6.             Authority to Contract. The
signatories hereto represent that they have full and complete authority to bind
their respective parties to this Assignment and that no other consent is necessary
or required in order for the signatories to execute this Assignment on behalf
of their respective parties.

7.             Dispute Costs. In the event
any dispute between the parties with respect to this Assignment results in
litigation or other proceeding, the prevailing party shall be reimbursed by the
party not prevailing in such proceeding for all reasonable costs and expenses,
including, without limitation, reasonable attorneys’ and experts’ fees and
costs incurred by the prevailing party in connection with such litigation or
other proceeding and any appeal thereof. Such costs, expenses, and fees shall
be included in and made a part of the judgment recovered by the prevailing
party, if any.

8.             Counterparts; Signatures.
This Assignment may be executed in counterparts. All executed counterparts
shall constitute one agreement, and each counterpart shall be deemed an
original. The parties hereby acknowledge and agree that the delivery of an
executed copy of this Assignment by facsimile signatures or an executed copy of
this Assignment transmitted by electronic mail in so-called “pdf” format shall
be legal and binding and shall have the same full force and effect as if an
original of this Assignment had been delivered. Assignor and Assignee (i)
intend to be bound by the signatures on any document sent by facsimile or
electronic mail, (ii) are aware that the other party will rely on such
signatures, and (iii) hereby waive any defenses to the enforcement of the terms
of this Assignment based on the foregoing forms of signature

9.             Governing Law.  This Assignment shall be governed by, and
construed in accordance with, the laws of the State of California.

10.           Entire Agreement/Modifications.  This Assignment, including exhibits, if any,
expresses the entire agreement of the parties and supersedes any and all
previous agreements between the parties with regard to the subject matter
hereof. There are no other understandings, oral or written, which in any way
alter or enlarge its terms, and there are no warranties or representations of
any nature whatsoever, either expressed or implied, except as may expressly be
set forth herein. Any and all future modifications of this Assignment will be
effective only if it is in writing and signed by the parties hereto. The terms
and conditions of such future modifications of this Assignment shall supersede
and replace any inconsistent provisions in this Assignment.

///continued on next page///

 C-2
 

///continued from previous page///

IN WITNESS WHEREOF, Assignor
and Assignee have duly executed this Assignment as of the date and year first
above written.

	
  ASSIGNOR:

  
	
   

  
	
  WESTCORE
  PROPERTIES AC, LLC,

  
	
  a Delaware
  limited liability company

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  ASSIGNEE:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ,

  	
   

  
	
  a

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  
					

 

 C-3

EXHIBIT D

Intentionally Deleted

 D-1

EXHIBIT E

Bill of Sale

This Bill of Sale
is executed and delivered to be effective as of                        ,
2007, by Concourse Fortune Associates LLC, a Delaware limited liability company
(“Seller”),  in favor of Westcore Properties AC, LLC, a
Delaware limited liability company (“Purchaser”)
covering the real property described in Exhibit
A attached to this Bill of Sale (the “Real Property”),  known
as the “Concourse Fortune” property.

1.             Sale of Personal Property. For
good and valuable consideration, Seller hereby sells, transfers, sets over and
conveys to Purchaser all of Seller’s right, title and interest in and to all
tangible personal property owned by Seller, located on the Real Property and
used solely in connection therewith (the “Tangible
Personal Property”),  a
list of which is attached to this Bill as Exhibit
B.

2.             Exclusions. Notwithstanding
the foregoing, Seller hereby expressly excludes all property owned by tenants
or other users or occupants of the Property.

[signature
page follows next]

 E-1
 

IN WITNESS WHEREOF,
the undersigned have caused this instrument to be executed effective as of the
date written above.

	
  SELLER:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Concourse Fortune Associates LLC,

  a Delaware limited liability company

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 E-2

EXHIBIT F

Notice to Tenant

                        ,
2007

VIA CERTIFIED MAIL

[TENANT’S NAME] 

[TENANT’S ADDRESS]

CITY, STATE ZIP 

ATTN:                                 

Re:                Lease Agreement dated                 
(the “Lease”) between                   
and               ,
as amended by                     ,
concerning the premises with a street address of                             ,
San Jose, California (as described in the Lease, the “Premises”)

Dear Tenant:

This is to notify you
that, effective as of                   ,
2007: (i) Concourse Fortune Associates LLC, the landlord under the Lease, has
sold the property in which the Premises are located (the “Property”) to                           
(“New Owner”), and, simultaneously
with the sale of the Property, has assigned to New Owner all of its rights and
interests as the landlord under the Lease and has transferred all security
deposits and prepaid rents, if any, to New Owner; (ii) New Owner has assumed
all of the rights and obligations of the landlord under the Lease accruing with
respect to any period on or after the date of this Notice to Tenant; and (iii)
New Owner has retained                     
as the managing agent of the building.

Effective immediately,
all rental payments, notices to the Landlord, and correspondence pursuant to
your lease should be mailed to the following address:

                                                                                                                    .

	
  

  	
  Seller:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Purchaser:

  

 

 F-1

EXHIBIT G

Certificate of Non-Foreign Status

1.                                       The
undersigned (“Transferor”) hereby
certifies:

a.                                   That
Transferor is not a foreign entity (as said term is defined in the Internal
Revenue Code and Income Tax Regulations) with respect to the transfer of that
certain property known as “Concourse Fortune,” located in San Jose, California
(the “Property”) legally described
in the Exhibit A attached to this
Certificate.

b.                                  That
Transferor is the record owner of the Property.

c.                                   The
tax identification number of Transferor is                                                     ,
and the offices of Transferor are located at 5753 Wayzata Boulevard, St. Louis
Park, Minnesota 55416.

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

2.                                       Transferor
understands that this Certification may be disclosed to the Internal Revenue
Service by Transferee and that any false statement in this Certificate could be
punishable by fine, imprisonment or both.

Under penalties of perjury, I declare that I have
examined this Certification 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 the Transferor.

Dated the         
day of                            ,
2007.

 G-1

EXHIBIT H

Form Tenant Estoppel Certificate

	
  TENANT:

  	
   

  	
   

  
	
  DATE OF LEASE:

  	
   

  	
   

  
	
  PREMISES:

  	
   

  	
   

  
					

 

ESTOPPEL CERTIFICATE

	
  To:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

	
  

  	
  Re:

  	
  Lease dated                       ,
                      
  between                                               
  (“Landlord”) and 

  
	
   

  	
   

  	
                                                        ,
  a                                                           
  (“Tenant”)

  

 

The undersigned hereby certifies to                                                                                                     
(“Purchaser”) as follows:

1.             The undersigned is the “Tenant” under the
above-referenced lease (“Lease”) covering the above-referenced Premises (“Premises”).
A true, correct, and complete copy of the Lease [including all addenda, riders,
amendments, modifications and supplements thereto (collectively, the “Lease
Modifications”)] is attached as Exhibit “1” and each document
comprising the Lease Modifications is listed below:

	
  

  	
  a.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  b.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  c.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  d.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  e.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  f.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  g.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  h.

  	
   

  	
   

  

 

For purposes hereof, all references to the “Lease”
shall include the original lease agreement and all of the Lease Modifications thereto.

 H-1
 

2.             The Lease constitutes the entire agreement between
Landlord and Tenant with respect to the Premises and the Lease has not been
modified, changed, altered, or amended in any respect except as set forth
above. The Lease is in full force and effect.

3.             The term of the Lease commenced on                                   ,
              ,
and, taking into account any previously exercised options and all effective
renewal terms, will expire on                               ,
            .
Tenant has accepted possession of the Premises and is the actual occupant in
possession and has not sublet, assigned, or hypothecated Tenant’s leasehold
interest. All improvements to be constructed on the Premises by Landlord have
been completed and accepted by Tenant and Landlord has paid in full all
construction allowances and any allowances and inducements due and payable to
Tenant.

4.             As of the date of this Estoppel Certificate, to the best
knowledge of Tenant, there exists no breach or default, nor state of facts
which, with notice, the passage of time, or both, would result in a breach or
default on the part of either Tenant or Landlord. To the best of Tenant’s
knowledge, no claim, controversy, dispute, quarrel, or disagreement exists
between Tenant and Landlord.

5.             Tenant is currently obligated to pay rental in fixed
monthly installments of $                         
per month (taking into account all Consumer Price Index adjustments and other
adjustments pursuant to the terms of the Lease), and monthly installments of
rent have been paid through                                     ,
2006. The Lease contains the following monthly rent adjustments and other rent
step-ups as set forth in Section     of the Lease:                                                                                 .

6.             Operating costs, common area expenses, taxes and other
pass-throughs [INSERT IF APPLICABLE: are based upon                       
base year and] are presently included in Tenant’s monthly rental installments
as specified in section 5  above.
No rent has been paid more than one (1) month in advance. Tenant has no claim
or defense against Landlord under the Lease and is asserting no offsets or
credits against either the rent or Landlord. Tenant has no claim against
Landlord for any security or other deposits except $                       
which was paid pursuant to the Lease.

7.             Tenant has no option or preferential right to purchase
all or any part of the Premises (or the real property of which the Premises are
a part) nor any right or interest with respect to the Premises other than as
Tenant under the Lease.

8.             Tenant has no option, right of first offer or right of
first refusal to lease or occupy any other space within the property of which
the Premises are a part, except                                                     .
Tenant has no right to renew or
extend the term(s) of the Lease except                                                                                             .

9.             Tenant has no preferential right to parking spaces or
storage area(s) except                                                                                                                                                                               .

 H-2
 

10.           Tenant has made no agreement with Landlord or any agent,
representative or employee of Landlord concerning free rent, partial rent,
rebate of rental payments or any other type of rental or other concession
except                                                                                                             .

11.           There has not been filed by or against Tenant a petition
in bankruptcy, voluntary or otherwise, any assignment for the benefit of
creditors, any petition seeking reorganization or arrangement under the
bankruptcy laws of the United States, or any state thereof, or any other action
brought under said bankruptcy laws with respect to Tenant.

12.           All insurance required of Tenant by the Lease has been
provided by Tenant and all premiums paid.

This Estoppel Certificate is made to Purchaser
in connection with the prospective purchase by Purchaser or Purchaser’s
assignee, of the property of which the Premises is a part. This Estoppel
Certificate may be relied on by Purchaser, and any other party who acquires an
interest in the Premises in connection with such purchase and any person or
entity which may finance such purchase.

Dated
this                   
day of                                     ,
2006

	
  

  	
  “TENANT”

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  	
   

  
	
   

  	
  Its:

  	
   

  	
   

  	
   

  
							

 

The undersigned hereby acknowledges and agrees to the foregoing Estoppel
Certificate.

	
  “GUARANTOR” (If any)  

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  	
   

  
	
   

  	
  Its:

  	
   

  	
   

  	
   

  
							

 

 H-3

EXHIBIT I

Intentionally Deleted

 I-1

EXHIBIT J

Litigation Matters

None.

 J-1

EXHIBIT K

List of Leases

1.                         Flextronics International,
USA, Inc. (1710 Fortune Drive)

a.                         Lease
dated May 7, 1999 between Kilroy Realty, L.P., Kilroy Realty Corporation and
Flextronics International, USA, Inc.

b.                         First
Amendment to Lease dated June 1, 1999

c.                         Second Amendment to Lease
dated May 1, 2006

2.                         UUNet Technologies, Inc. (a
subsidiary of Verizon Communications, Inc.) (2030 Fortune Drive) (formerly
Worldcom Advanced Networks Incorporate fka Compuserve Network Services
Incorporated or Compuserve Incorporated)

a.                         Lease
dated October 5,   1998 between Kilroy
Realty,  L.P., Kilroy Realty Corporation
and Worldcom Advanced Networks Incorporated

b.                         First
Amendment to Lease dated July 13, 1999

c.                         Second Amendment to Lease
dated October 24, 2001

3.                         Laird Technologies, Inc. (2030
Fortune Drive)

a.                         Lease
dated April 1, 2002 between Concourse Fortune Associates LLC and Laird
Technologies, Inc.

b.                         Waiver of
Monument Sign dated May 31, 2002

c.                         Written
Action Authorizing Lease Guaranty dated April 1, 2002

d.                         Guaranty dated April 1, 2002
executed by Laird, Inc.

4.                         TFT, Inc. (1953 Concourse
Drive)

a.                         Lease
dated September 30, 2003 between Concourse Fortune Associates LLC and TFT, Inc.

b.                         Acknowledgment of Commencement
Date dated November 1, 2003

5.                         FlexOne Technologies, Inc.
(1963 Concourse Drive)

a.                         Lease
dated October 9, 2001 between Concourse Fortune Associates LLC and FlexOne
Technologies, Inc.

b.                         First
Amendment to Lease dated October 29, 2002

c.                         Second
Amendment to Lease dated September 30, 2002

d.                         Third
Amendment to Lease dated August 6, 2004

e.                         Fourth
Amendment to Lease dated April 1, 2005

f.                           Fifth
Amendment to Lease dated October 1, 2005

g.                        Sixth Amendment to Lease dated
April 1, 2006

 K-1
 

6.                         ZF Array Technology, LLC (1965
Concourse Drive)

a.                         Lease
dated July 31, 2003 between Concourse Fortune Associates LLC and ZF Array
Technology, LLC

b.                         Acknowledgment
of Commencement Date dated August 5, 2003

c.                         Assignment
of Lease between ZF Array Technology, LLC, as Assignor, ZF Array Technology,
Incorporated, as Assignee, and Concourse Fortune Associates LLC, as Lessor,
dated December 28, 2004

d.                         First Amendment to Lease dated
October 1, 2005

7.                         Discera, Inc. (1961-65
Concourse Drive)

a.                         Lease
dated April 2004 between Concourse Fortune Associates LLC and Discera, Inc.

b.                         First Amendment
to Lease dated June 11, 2004

c.                         Landlord/Mortgagee Waiver
dated July 2004

8.                         frog design, Inc. (formerly
Flextronics International USA, Inc.) (1957 Concourse Drive)

a.                         Lease
dated April 18, 2005 between Concourse Fortune Associates LLC and Flextronics
International USA, Inc.

b.                         Notice of
Assignment dated June 9, 2005

c.                         First
Amendment to Lease dated August 12, 2005

d.                         Consent for Change in Control
of frog design, Inc. dated August 17, 2006

9.                         GenX Mobile, Inc. (1955
Concourse Drive)

a.                         Lease
dated April 1, 2006 between Concourse Fortune Associates LLC and GenX Mobile
Incorporated

b.                         Letter Agreement dated April
17, 2006

The following are the “Required Tenants” for the
purposes of Section 9.1 of this Agreement:

·                             Flextronics
International, USA, Inc.

·                             Verizon

·                             TFT,
Inc.

·                             ZF
Array Technology, LLC

·                             frog
design, Inc.

·                             GenX
Mobile, Inc.

 K-2

EXHIBIT L

List of Brokerage
Agreements and 

Leasing Commission Agreements

Exclusive Leasing Agreement dated July 24, 2000
between Seller and CPS Realty Group, Inc., a California corporation (“CPS”) (also known as CPS, a Commercial
Real Estate Company, Inc.), as amended by the Amendment to Leasing Agreement
dated May 31, 2006 between Seller and CPS.

 L-1

EXHIBIT M

General Assignment

This General Assignment
(the “Assignment”)  is made and entered into as of this          
day of                            ,
200          (the “Assignment Date”),  by and between Concourse Fortune
Associates LLC, a Delaware limited liability company (“Assignor”),  and                                            ,
a                                    
(“Assignee”), with reference to
the following facts.

RECITALS

A.        Assignor and Assignee
are parties to that certain Real Estate Sale Agreement made and entered into as
of                                    ,
2007 (the “Purchase Agreement”),
pursuant to which Assignor agreed to sell to Assignee, and Assignee agreed to
purchase from Assignor property located in                           ,
                          ,
as legally described in Exhibit A attached hereto (the “Real Property”). Each capitalized term in
this Assignment that this Assignment does not define has the meaning the
Purchase Agreement gives it.

B.        A
list of the Leases affecting the Property is attached as Schedule 1
hereto.

C.        A list of all security
deposits (and/or bonds or letters of credit in lieu thereof or in addition
thereto) from the tenants under the Leases is attached as Schedule 2
hereto (collectively, the “Security Deposits
and Letters of Credit”).

D.        Assignee has acquired
fee title to the Property from Assignor on the Assignment Date. Assignor now
desires to assign and transfer to Assignee all of Assignor’s right, title and
interest in, to and under the Leases, the Security Deposits and Letters of
Credit, and the Intangible Personal Property, as set forth herein.

NOW,
THEREFORE, for valuable consideration, the receipt and
adequacy of which are hereby acknowledged, the parties hereto agree as follows:

1.        Assignment and
Assumption. Effective as of the Assignment Date, Assignor hereby grants,
transfers, conveys, bargains, assigns and delegates to Assignee all of Assignor’s
right, title, and interest in, to and under (i) the Leases, as listed in Schedule
1 hereto; (ii) the Security Deposits and Letters of Credit as listed in Schedule
2 hereto; and (iii) the Intangible Personal Property. Assignee hereby
accepts such assignment and assumes all of Assignor’s obligations and
liabilities as the landlord under each Lease and with respect to the Security
Deposits and Letters of Credit that accrues with respect to any period on or
after the Assignment Date. In the event any Security Deposit is in the form of
a bond or letter of credit, then, Assignor shall deliver to Assignee either a
fully executed assignment to Assignee of the beneficial interest under such
bond or letter of credit together with the bond or letter of credit issuer’s
express written consent to such assignment or a full replacement for such bond
or letter of credit issued by the bond or letter of credit issuer directly in
favor of Assignee. Assignee is not assuming any liability or obligation of
Assignor relating to or arising from Assignor’s performance of, or

 M-1
 

failure to perform, any of Assignor’s obligations under
or with respect to the Leases arising or accruing with respect to any time
before the Assignment Date.

2.        Assignor’s
Representations. Assignor represents and warrants to Assignee that Assignor
has the right to bargain, convey, assign and transfer to Assignee the Leases,
the Security Deposits, and the Intangible Personal Property (collectively, the “Interests”).

3.        Indemnification by
Assignor. Assignor agrees to protect, defend and indemnify Assignee from
and against any and all claims, damages (including without limitation,
consequential damages and all other damages regardless of the speculative
nature thereof), liabilities, judgments, demands, losses, costs and expenses
(including without limitation, reasonable attorneys’ fees and costs, and court
costs) (collectively, the “Claims”), under the Leases or with respect to the
Security Deposits and Letters of Credit arising or otherwise accruing with
respect to any time before the Assignment Date.

4.        Indemnification by
Assignee. Assignee agrees to protect, defend and indemnify Assignor from
and against any and all Claims, under the Leases that accrue with respect to
any time on or after the Assignment Date.

5.        Dispute Costs.
In the event of any dispute between Assignor and Assignee arising out of the
obligations of the parties under this Assignment or concerning the meaning or
interpretation of any provision contained herein, the losing party shall pay
the prevailing party’s costs and expenses of such dispute, including without
limitation, reasonable attorneys’ fees and costs. 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.

6.        Counterparts;
Facsimile Signatures. This Assignment may be executed in counterparts. All
executed counterparts shall constitute one agreement, and each counterpart
shall be deemed an original. The parties agree that the delivery of an executed
copy of this Assignment by facsimile shall be legal and binding and shall have
the same full force and effect as if an original of this Assignment had been
delivered. Facsimile signatures shall be binding upon the parties.

7.        Survival. This
Assignment and Assignor’s foregoing representations, covenants and warranties
shall survive the Closing (as such term is defined in the Purchase Agreement)
and shall run to the benefit of Assignee and Assignee’s successors and assigns.

8.        Governing Law.
This Assignment shall be enforced, governed by, and construed in accordance
with the laws of the State of California.

9.        Warranty of
Authority. The signatories hereto represent that they have full and
complete authority to bind their respective parties to this Assignment and that
no other consent is

 M-2
 

necessary or required in order for the signatories to execute this
Assignment on behalf of their respective parties.

10.      Severability. If
for any reason, any provision of this Assignment shall be held to be
unenforceable, it shall not affect the validity or enforceability of any other
provision of this Assignment and to the extent any provision of this Assignment
is not determined to be unenforceable, such provision, or portion thereof,
shall be, and remain, in full force and effect.

///signature
page follows///

 M-3
 

IN WITNESS WHEREOF, the parties
hereto have executed this Assignment as of the Assignment Date.

ASSIGNOR:

Concourse Fortune Associates LLC, 

a Delaware limited liability company

	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  

 

ASSIGNEE:

	
  

  	
   

  	
  ,

  	
   

  
	
  a

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  
					

 

 M-4

EXHIBIT N

Natural Hazard Disclosure
Statement

This statement applies to
the following described real property; Concourse Fortune, San Jose, California;
APN Number:                       .

The undersigned Seller
discloses the following information with the knowledge that even though this is
not a warranty, the undersigned prospective Purchaser may rely on this
information in deciding whether and on what terms to purchase the subject real
property. The following disclosures are made by the Seller based solely upon
the information in the report attached to this Statement. This information is
merely a disclosure and shall not be deemed to be part of any contract between
the Purchaser and Seller.

THIS REAL PROPERTY LIES
WITHIN THE FOLLOWING HAZARDOUS AREA(S):A SPECIAL FLOOD HAZARD AREA (any type
Zone “A” or “V”) designated by the Federal Emergency Management Agency.

o  Yes           o  No

AN AREA OF POTENTIAL
FLOODING shown on a dam failure inundation map pursuant to Section 8589.5 of
the Government Code.

o  Yes           o  No

A VERY HIGH FIRE HAZARD
SEVERITY ZONE pursuant to Section 51178 or 51179 of the Government Code. The
owner of this property is subject to the maintenance requirements of Section
51182 of the Government Code.

o  Yes           o  No

A WILDLAND AREA THAT MAY
CONTAIN SUBSTANTIAL FOREST FIRE RISKS AND HAZARDS pursuant to Section 4125 of
the Public Resources Code. The owner of this property is subject to the
maintenance requirements of Section 4291 of the Public Resources Code.
Additionally, it is not the state’s responsibility to provide fire protection
services to any building or structure located within the wildlands unless the
Department of Forestry and Fire Protection has entered into a cooperative
agreement with a local agency for those purposes pursuant to Section 4142 of
the Public Resources Code.

o  Yes           o  No

AN EARTHQUAKE FAULT ZONE pursuant to Section 2622 of
the Public Resources Code.

o  Yes           o  No

 N-1
 

A SEISMIC HAZARD ZONE pursuant to Section 2696 of the
Public Resources Code.

o
Yes (Landslide Zone) 9 Yes (Liquefaction Zone)

o
No Maps not yet released by state                      

THESE HAZARDS MAY LIMIT
YOUR ABILITY TO DEVELOP THE REAL PROPERTY, TO OBTAIN INSURANCE, OR TO RECEIVE
ASSISTANCE AFTER A DISASTER.

THE ATTACHED REPORT ON
WHICH THESE DISCLOSURES ARE BASED ESTIMATE WHERE NATURAL HAZARDS EXIST. THEY
ARE NOT DEFINITIVE INDICATORS OF WHETHER OR NOT A PROPERTY WILL BE AFFECTED BY
A NATURAL DISASTER. PURCHASER IS HEREBY ADVISED TO OBTAIN INDEPENDENT
PROFESSIONAL ADVICE REGARDING THOSE HAZARDS AND OTHER HAZARDS THAT MAY AFFECT
THE SUBJECT PROPERTY.

This statement may be signed in one or more
counterparts.

Seller hereby states that
the information set forth herein is true and correct to the best of the Seller’s
knowledge based solely upon the information in the attached report, and such
knowledge is limited to be as of the date specified below. Seller has not
independently verified the information in this statement and the attached
report, and Seller is not personally aware of any errors or inaccuracies in the
information in this statement. As used in this statement, “best of Seller’s
knowledge” shall mean the knowledge that the following persons have actual,
conscious knowledge of, without any duty of investigation, and without
imputation of any knowledge to such persons: Steven F. Lachman, William K.
Hoeg, and John C. Scholz.

	
  SELLER:

  
	
   

  
	
  Concourse
  Fortune Associates LLC,

  a Delaware limited liability company

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  

 

 N-2
 

Purchaser hereby
represents and warrants that it has read and understands the information in
this disclosure statement and in the attached report and will rely upon the
information in the report as though the report were addressed directly to
Purchaser.

	
  PURCHASER:

  
	
   

  
	
   

  	
  LLC,

  
	
  a Delaware
  limited liability company

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  
				

 

 N-3

EXHIBIT O

List of Due Diligence
Materials

True and complete copies of the following documents
that are in Seller’s possession or control:

·                            Leases
and related documents (see attached summary)

·                            Other
property related documents such as telecom and any other licenses, if any

·                            Leasing
agreement with CPS

·                            Property
Management agreement with United Capital

·                            Rent
roll

·                            Two
years of property tax bills

·                            Copies
of all services contracts and equipment leases, if any

·                            Tenant
billing ledger for 2006 and YTD ledger

·                            Current
AR report

·                            3
years of cash operating history and YTD statements

·                            Copies
of Letters of credit, if any (none)

·                            Personal
Property listing - none

·                            Listing
of any current litigation if any (none)

·                            Most
recent physical reports (PCA’s), including

·                             Roof
report March 2007

·                             HVAC
inventory report Feb 2007

·                             AllWest
PCA’s June 2000

·                            Existing
Title insurance policy (already provided to Buyer per PSA)

·                            Copies
of most recent survey(s) (already provided to Buyer per PSA)

·                            Copies
of any construction drawings (or access to them in United Captial Corp’s Mt.
View offices)

·                            Most
recent environmental reports

·                             AllWest
reports, June 2000

·                            Most
recent seismic reports

·                             AllWest
reports, June 2000

·                            Copies
of any permits - if any in United Capital’s offices

·                            Copies
of any zoning information - none

·                            Copies
of CO’s if any - none

·                            Seller’s
team contact list (already provided)

·                            Access
to Tenant lease files (in MN)

·                            Copies
of relevant insurance certificates

·                            Any
warranty documents if applicable - none

·                            Last
three years of CAM estimates and reconciliations.

·                            Utility
info - account numbers and what buildings they correspond to

·                            2007
Budget

·                            List
of outstanding TI’s / commissions if any (should be none)

·                            Tenant
contact list

·                            Summary
of Cap Ex over the past 3 years – item, timing, and amount spent.

·                            Property
DataCom Report 2030 Fortune – Optio Development – March 2007

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