Document:

purchaseandsaleagreement

                            PURCHASE AGREEMENT          THIS AGREEMENT is entered into as of September 24, 2019 (the “Effective Date”), between BRI   1840 PARK PLACE,  LLC,  a  Delaware  limited  liability  company  (only  with  respect to the  Park  Place   Property (hereafter defined) and sometimes hereafter referred to as the “Park Place Seller”) and BRI 1826   DELAWARE  TIMBERWAY,  LLC,  a  Delaware  limited  liability  company  (only  with  respect  to  the   Timberway Property (hereafter defined) and sometimes hereafter referred to as the “Timberway Seller”; the   term “Seller” when and as used herein shall mean and refer individually to the Park Place Seller or the   Timberway Seller that is the owner of Real Estate (hereafter defined) with respect to which the term Seller   is applicable and sometimes hereafter collectively as “Sellers”), and HARTMAN vREIT XXI OPERATING   PARTNERSHIP L.P., a Texas limited partnership (“Purchaser”).                                      ARTICLE I                                                                          PURCHASE AND SALE         1.1    Agreement  of  Purchase  and  Sale.  In  consideration  of  their  covenants  set  forth  in  this  Agreement,                       Park Place Seller agrees to sell to Purchaser, and Purchaser agrees to purchase from         Park Place Seller, for the Purchase Price (as hereinafter defined) and on the terms and conditions         set forth herein, the following (collectively, the “Park Place Property”):                      (i)   All of the land situated in the City of Houston, the County of Harris and               the  State  of  Texas,  described  on Exhibit A-1 attached  hereto  and  made  a  part  hereof,               together  with  all  right,  title  and  interest  of  Seller  in  and  to  all  benefits,  privileges,               easements, tenements, hereditaments and appurtenances thereon or appertaining thereto,               and together with all right, title and interest of Seller in and to adjacent streets, alleys and               rights-of-way (the “Park Place Real Estate”).                      (ii)  All  structures,  buildings,  improvements  and  fixtures,  including  without               limitation  all  equipment  and  appliances,  used  in  connection  with  the  operation  or               occupancy  thereof,  such  as  heating  and  air-conditioning  systems  and  facilities  used  to               provide any utility services, parking services, refrigeration, ventilation, trash disposal or               other services owned by Park Place Seller and located on the Park Place Real Estate (“Park               Place Improvements”).                      (iii) All personal property owned by Park Place Seller located on or in the Park               Place Real Estate or Park Place Improvements and used in connection with the operation               and maintenance of the Park Place Real Estate or Park Place Improvements (“Park Place               Personal Property”).                      (iv)  Park Place Seller’s interest in all leases and other agreements to occupy               the Park Place Real Estate and/or the Park Place Improvements, or any portion thereof, as               amended from time to time, in effect on the date of Closing, as hereinafter defined (all such               leases  and  agreements  being  sometimes  collectively  referred  to  herein  as “Park  Place               Leases”).                      (v)   All intangible property owned by Park Place Seller and used in connection               with  the  Park  Place  Real  Estate,  Park  Place  Improvements  and  Park  Place  Personal               Property, including specifically, without limitation, all right, title and interest of Park Place       PURCHASE AGREEMENT                   Page 1   NG-EF2ZLUYJ 089930.000013 4840-7107-2412.7 Purchase and Sale Agreement - Accesso-Timberway and Park Place (Hartman)   4840-7107-2412 v.7.docx  

 

             Seller in and to the following: (i) all trademarks and trade names used in connection with               any part of the Park Place Real Estate and Park Place Improvements, (ii) all plans and               specifications,  if  any,  in  the  possession  of  Park  Place  Seller  which  were  prepared  in               connection with the construction of any of the Park Place Improvements, (iii) all licenses,               permits and warranties now in effect with respect to the Park Place Real Estate, Park Place               Improvements and Park Place Personal Property, and (iv) all assignable written contracts               in effect at Closing (as hereinafter defined) in any way relating to the Park Place Property               (as hereinafter defined), including without limitation all equipment leases and all rights of               Park Place Seller thereunder relating to equipment or property located upon the Park Place               Property,  which  will  survive  Closing  and  which  Purchaser  shall  assume  pursuant  to               Section 5.4(c) herein (“Park Place Intangible Property”).                      Timberway Seller agrees to sell to Purchaser, and Purchaser agrees to purchase         from Timberway Seller, for the Purchase Price and on the terms and conditions set forth herein, the         following (collectively, the Timberway Property”):                      (i)   All of the land situated in the City of Houston, the County of Harris and               the  State  of  Texas, described  on Exhibit A-2 attached  hereto  and  made  a  part  hereof,               together  with  all  right,  title  and  interest  of  Seller  in  and  to  all  benefits,  privileges,               easements, tenements, hereditaments and appurtenances thereon or appertaining thereto,               and together with all right, title and interest of Seller in and to adjacent streets, alleys and               rights-of-way (the “Timberway Real Estate”).                      (ii)  All  structures,  buildings,  improvements  and  fixtures,  including  without               limitation  all  equipment  and  appliances,  used  in  connection  with  the  operation  or               occupancy  thereof,  such  as  heating  and  air-conditioning  systems  and  facilities  used  to               provide any utility services, parking services, refrigeration, ventilation, trash disposal or               other  services  owned  by Timberway  Seller  and  located  on  the Timberway  Real  Estate               (“Timberway Improvements”).                      (iii) All personal property owned  by Timberway Seller located on or in the               Timberway  Real  Estate  or Timberway  Improvements  and  used  in  connection  with  the               operation and maintenance of the Timberway Real Estate or Timberway Improvements               (“Timberway Personal Property”).                      (iv)  Timberway Seller’s interest in all leases and other agreements to occupy               the Timberway Real Estate and/or the Timberway Improvements, or any portion thereof,               as amended from time to time, in effect on the date of Closing, as hereinafter defined (all               such leases and agreements being sometimes collectively referred to herein as “Timberway               Leases”).         1.2    All  intangible  property  owned  by  Timberway  Seller  and  used  in  connection  with  the  Timberway  Real  Estate,  Timberway  Improvements  and  Timberway  Personal  Property,  including  specifically, without limitation, all right, title and interest of Timberway Seller in and to the following: (i) all  trademarks and trade names used in connection with any part of the Timberway Real Estate and Timberway  Improvements, (ii) all plans and specifications, if any, in the possession of Timberway Seller which were  prepared  in  connection  with  the  construction  of  any  of  the Timberway  Improvements,  (iii) all  licenses,  permits and warranties now in effect with respect to the Timberway Real Estate, Timberway Improvements  and Timberway Personal Property, and (iv) all assignable written contracts in effect at Closing (as hereinafter  defined) in any way relating to the Timberway Property (as hereinafter defined), including without limitation  all equipment leases and all rights of Timberway Seller thereunder relating to equipment or property located       PURCHASE AGREEMENT                   Page 2   NG-EF2ZLUYJ 089930.000013 4840-7107-2412.7 Purchase and Sale Agreement - Accesso-Timberway and Park Place (Hartman)   4840-7107-2412 v.7.docx  

 

upon the Timberway Property, which will survive Closing and which Purchaser shall assume pursuant to  Section 5.4(c) herein (“Park Place Intangible Property”).Property Defined. The Park Place Property and the  Timberway Property are sometimes collectively referred to herein as the “Property.”         1.3    Permitted Exceptions. The Property shall be conveyed subject to the matters which are, or  are deemed to be, Permitted Exceptions with respect the respective Property to which they apply pursuant  to Article II hereof (herein referred to collectively as the “Permitted Exceptions”).         1.4    Purchase Price. The purchase price for the Property shall be Nineteen Million Six Hundred  Thousand and No/100 Dollars ($19,600,000,000) (“Purchase Price”) (to be allocated by Sellers).         1.5    Payment of Purchase Price. The Purchase Price, as increased or decreased by prorations  and adjustments as herein provided, shall be payable in full at Closing in accordance with the terms of  Section 4.3 below.         1.6    Earnest Money. Within three (3) business days with the full execution and delivery of this  Agreement, Purchaser is depositing with Stewart Title Guaranty Company (the “Title Company”), having  its offices at 1717 Main Street, Suite 3500, Dallas, TX. 75201, Attn: Kelly Ansley; Telephone: 214-413- 1823; Telecopier: 214-871-2855; Email: Kelly.Ansley@stewart.com (the “Escrow Agent”), the sum of Three  Hundred Fifty Thousand and No/100 Dollars ($350,000.00) (the “Initial Earnest Money”) in good funds.   The term “good funds” as used in this Agreement shall mean certified bank or cashier’s check or by U.S.  federal wire transfer. The Escrow Agent shall hold the Earnest Money (hereafter defined) in an interest- bearing account in accordance with the terms and conditions of this Agreement. The Initial Earnest Money,  together with the Additional Earnest Money (hereafter defined), if any, and all interest earned on such sums,  are herein referred to collectively as the “Earnest Money.” All interest accruing on the Earnest Money shall  become a part of the Earnest Money and shall be distributed as Earnest Money in accordance with the terms  of this Agreement. Time is of the essence for the delivery of Earnest Money under this Agreement. After the  expiration of the Inspection Period, the Earnest Money shall become non-refundable to Purchaser unless  otherwise expressly set forth in this Agreement.         1.7    Independent Contract Consideration. Upon the Effective Date, Purchaser shall deliver to  Sellers (to be allocated by Sellers) a check in the amount of Fifty Dollars ($50) (the “Independent Contract  Consideration”), which amount Sellers and Purchaser hereby acknowledge and agree has been bargained for  and  agreed  to  as  consideration  for  Sellers’ execution  and  delivery  of  this Agreement. The  Independent  Contract Consideration is in addition to and independent of any other consideration or payment provided for  in this Agreement, and is nonrefundable in all events.                                      ARTICLE II                                                                           TITLE AND SURVEY         2.1    Title Commitment. Within ten (10) days after the Effective Date, Sellers shall cause the  Title Company to deliver to Purchaser, at Sellers’ expense, (a) a title commitment (“Commitment”) for an  owner’s policy of title insurance issued by the Title Company in the amount of the Purchase Price showing  Park Place Seller as the record title owner of the Park Place Real Estate and Timberway Seller as the record  title owner of the Timberway Real Estate by the terms of which Title Company, as agent for Insurance  Company, agrees to issue to Purchaser at Closing an owner’s policy of title insurance (“Title Policy”) on the  standard form therefor promulgated by the Texas Department of Insurance insuring Purchaser’s fee simple  title to the Park Place Real Estate and the Timberway Real Estate to be good and indefeasible subject to the  terms of such policy, including the Schedule B exceptions, and (b) best available copies of all instruments  referenced in Schedule B and Schedule C of the Commitment.       PURCHASE AGREEMENT                   Page 3   NG-EF2ZLUYJ 089930.000013 4840-7107-2412.7 Purchase and Sale Agreement - Accesso-Timberway and Park Place (Hartman)   4840-7107-2412 v.7.docx  

 

      2.2    Survey. Within three (3) days after the Effective Date, Sellers shall cause to be delivered  to Purchaser, at Sellers’ expense, the most current existing survey(s), if any, in Seller’s possession, of the  Park Place Real Estate and the Timberway Real Estate (the “Existing Surveys”).  Purchaser shall have the  right, at its sole cost, to obtain a new survey of the Park Place Real Estate and the Timberway Real Estate or  an  update  to the  Existing Surveys  (the “Updated  Surveys,” and  together with the  Existing Surveys,  the  “Surveys”).           2.3    Review of Commitment and Surveys. Purchaser shall have until the twenty-fifth (25th) day  after  the  Effective  Date  (the “Title  Review  Period”) to  notify  Sellers  in  writing  of  such  objections  as  Purchaser may have to anything contained in the Commitment or the Existing Surveys or in the Updated  Surveys; provided, however, that Purchaser shall not have the right to object to any Permitted Exceptions  described  in  Section 2.5  below.  If  Purchaser  fails  to  object  in  writing  to  any  item  contained  in  the  Commitment or the Surveys during the Title Review Period, Purchaser shall be deemed to have waived its  right to object to such item, and such item shall thereafter be deemed a Permitted Exception. In the event  that Purchaser objects to any item contained in the Commitment or the Surveys within the Title Review  Period (such items being herein referred to as “Title Defects”), Sellers shall notify Purchaser in writing  within five (5) days following the date of Purchaser’s notice of such Title Defects (the “Cure Period”) that  either (a) the Title Defects have been, or will be at or prior to Closing, removed from the Commitment or  the Surveys, as the case may be, or (b) Sellers have failed to arrange and have no intention to have the Title  Defects removed.         2.4    Failure to Cure Title Defects. If upon the expiration of the Cure Period Sellers have not  notified Purchaser that Sellers have arranged to or will at or prior to Closing remove the Title Defects, then  Purchaser may elect (which election must be made in writing within five (5) days following expiration of  the Cure Period but in no event later than the expiration of the Inspection Period) either: (a) to terminate this  Agreement, in which event the Earnest Money shall be returned to Purchaser as Purchaser’s sole remedy  hereunder  and  thereafter  neither  party  shall  have  any  further  obligations  hereunder  except  those  that  expressly survive termination of this Agreement; or (b) to take title as it then is. If Purchaser does not, within  five (5) days after the expiration of the Cure Period, send written notice to Sellers of its election to terminate  this Agreement pursuant to clause (a) of the preceding sentence or Purchaser elects to take title as is pursuant  to clause (b) of the proceeding sentence, then: (x) Purchaser shall be deemed to have elected to take title as  it then is without any reduction in the Purchase Price; (y) all Title Defects not removed from the Commitment  or the Surveys as such date will thenceforth be deemed Permitted Exceptions; and (z) this Agreement shall  remain in full force and effect. Anything to the contrary in this Agreement notwithstanding, Sellers shall  have no affirmative obligation hereunder to cure any Title Defects or expend any funds or incur any liabilities  in order to cause any matters shown in the Commitment or the Surveys to be removed, cured or insured over,  except  that  a  Seller  shall  pay  or  discharge  any  lien  or  encumbrance  arising  after  the  date  hereof  and  voluntarily created or assumed by such Seller and not created by or resulting from the acts of Purchaser or  other  parties  not  related  to  Sellers.  If  the  Commitment  (or  any  subsequent  revision  thereof)  discloses  exceptions other than the Permitted Exceptions, and other than those which a Seller has agreed to insure  against, pay or discharge, then unless Purchaser agrees to accept title as it then is without reduction of the  Purchase Price, Sellers may, at its option, terminate this Agreement, in which event the Earnest Money shall  be returned to Purchaser as Purchaser’s sole remedy under this Agreement and thereafter neither party shall  have any further obligations hereunder except those that expressly survive termination of this Agreement.         2.5    Other Permitted Exceptions. In addition to those matters shown in the Commitment and  the Surveys which become Permitted Exceptions pursuant to Section 2.4 above, the following shall also be  deemed to be Permitted Exceptions: (a) the Leases; (b) taxes and standby fees for the year in which Closing  occurs; (c) liens and encumbrances arising after the date hereof to which Purchaser consents in writing; and  (d) any liens or encumbrances of a definite or ascertainable amount, provided that Seller causes such liens       PURCHASE AGREEMENT                   Page 4   NG-EF2ZLUYJ 089930.000013 4840-7107-2412.7 Purchase and Sale Agreement - Accesso-Timberway and Park Place (Hartman)   4840-7107-2412 v.7.docx  

 

or encumbrances to be insured around such that same do not appear as an exception in the owner’s title  insurance policy issued to Purchaser pursuant to the Commitment.         2.6    Owner Title Policy. Purchaser shall have the right to obtain from the Title Company the  Title  Policy  in  accordance  with the  Commitment  at Sellers’ cost (to be  allocated  by  Sellers); provided,  however, that Sellers shall have no obligation to pay anything other than the base premium for the Title  Policy  (based  upon  the  Purchase  Price).  If  Purchaser  desires  to  obtain  a  modification  of the “survey  exception” or other modifications or endorsements to the Title Policy, same shall be at the sole expense of  Purchaser and Sellers shall have no liability or obligation with respect thereto.         2.7    Expiration  of  Inspection  Period.  It  is  the  intent  of  the  parties  that  the  right  granted  to  Purchaser to terminate this Agreement under this Article II shall expire upon the expiration of the Inspection  Period, notwithstanding that the Title Review Period, the Cure Period or any election period may extend  beyond the expiration of the Inspection Period. Accordingly, notwithstanding anything contained herein to  the contrary, if Purchaser has not terminated this Agreement pursuant to Section 2.4 prior to the expiration  of the Inspection Period, then Purchaser shall no longer have any right to terminate this Agreement under  Section 2.4(a),  and  in  such  event,   Purchaser  shall  be  bound  to  accept  title  to  the  Property  under  the  conditions specified in Sections 2.4(x), 2.4(y) and 2.4(z) above.         2.8    New Title Defects. In the event that, after the expiration of the Inspection Period and prior  to Closing, a revision of the Title Commitment reveals an adverse matter objectionable to Purchaser that was  not disclosed to Purchaser prior to the expiration of the Inspection Period and is not a Permitted Exception  (a “New Title Defect”), Purchaser shall have five (5) days after such matter is disclosed to Purchaser to send  written notice to Sellers of such New Title Defect (it being agreed that if Purchaser fails to object to the New  Title Defect within such five-day period, then such New Title Defect shall thereafter be deemed a Permitted  Exception). Sellers shall notify Purchaser in writing within five (5) days following the date of Seller’s receipt  of Purchaser’s notice of such New Title Defect (the “New Title Defect Cure Period”) that either (a) the New  Title Defect has been, or will be at or prior to Closing, removed from the Commitment, as the case may be,  or (b) Sellers have failed to arrange and have no intention to have the New Title Defect removed. If, upon  the expiration of the New Title Defect Cure Period, Sellers have not notified Purchaser that Sellers have  arranged or will at or prior to Closing remove the New Title Defect, then Purchaser may elect (which election  must be made in writing within five (5) days following expiration of the New Title Defect Cure Period but  in  no  event  later  than  the  Closing)  either:  (i) to  terminate  this Agreement  as  Purchaser’s  sole  remedy  hereunder (in which event the Earnest Money shall be returned to Purchaser and, upon such termination, the  Earnest Money shall be returned to Purchaser and thereafter neither party shall have any further obligations  hereunder except those that expressly survive termination of this Agreement); or (ii) to take title as it then  is. If Purchaser does not, within five (5) days after the expiration of the New Title Defect Cure Period, but  in no event later than the Closing, send written notice to Sellers of its election to terminate this Agreement  pursuant to clause (i) of the preceding sentence or Purchaser elects to take title as is pursuant to clause (ii)  of the proceeding sentence, then (x) Purchaser shall be deemed to have elected to take title as it then is  without any reduction in the Purchase Price; (y) the New Title Defect will thenceforth be deemed a Permitted  Exception; and (z) this Agreement shall remain in full force and effect.                                     ARTICLE III                                                                           INSPECTION PERIOD         3.1    Property Documents. Within five (5) days after the Effective Date, each Seller shall deliver  through  a  secure  website  or  make  available  to  Purchaser  at  the  Property,  to  the  extent  in  such  Seller’s  possession, the documents described on Exhibit B attached hereto and made a part hereof for all purposes  (the “Property  Documents”). Purchaser  shall,  if  requested  by  any or  both  Sellers,  execute  instruments       PURCHASE AGREEMENT                   Page 5   NG-EF2ZLUYJ 089930.000013 4840-7107-2412.7 Purchase and Sale Agreement - Accesso-Timberway and Park Place (Hartman)   4840-7107-2412 v.7.docx  

 

acknowledging receipt of the Property Documents or any other document delivered or made available to  Purchaser  in  connection  with  the  transaction  contemplated  hereby.  During  the  Inspection  Period  (as  hereinafter defined), Purchaser may inspect the Property Documents during normal business hours and may  photocopy  same  at  Purchaser’s  expense.  Notwithstanding  the  foregoing  provisions,  Sellers  shall  not  be  obligated to deliver to Purchaser any report described in Exhibit B if the terms of such report restrict a Seller  from doing so; provided, however, in such event, Seller agrees to request  permission from the report author  to provide the report to Purchaser; provided, further, Seller shall have no obligation to incur any cost, liability  or obligation in connection with attempting to obtain such permission and Seller’s inability to obtain such  permission shall not constitute a default or breach of this Agreement on the part of Seller and Purchaser shall  not have any rights or remedies in the event thereof. With respect to any environmental report or other report  described in Exhibit B which a Seller delivers to Purchaser, Purchaser understands and agrees that (a) such  report shall be delivered to Purchaser for general information purposes only, (b) Purchaser shall not have  any right to rely on any report received  from a  Seller and will not rely thereon, but rather will rely on  inspections and reports performed by or on behalf of Purchaser, and (c) Sellers shall have absolutely no  liability for any inaccuracy in or omission from any report which it delivers to Purchaser.         3.2    Right  of  Inspection.  During  the  period  beginning  on  the  Effective  Date  and  ending  at  5:00 p.m., Houston, Texas time, on the thirtieth (30th) day after the Effective Date (the “Inspection Period”),  Purchaser and its representatives (including Purchaser’s architects, engineers and consultants) shall have the  right to examine the Property Documents and to make a physical inspection of the Property (including the  right to conduct such soil, engineering, environmental, hazardous or toxic material, noise pollution, seismic  or other physical test, study or investigation as Purchaser may desire, provided, however, that Purchaser  must obtain Sellers’ consents to any such test other than commercially standard and typical asbestos testing,  which may be withheld in Sellers’ sole discretion, to any physically invasive testing or any testing involving  sampling). In this regard, Purchaser and its authorized agents and representatives shall be entitled to enter  upon the Property at all reasonable times during the Inspection Period, upon reasonable prior oral or written  notice to Sellers and while accompanied by a representative of Sellers, subject to the rights of tenants of the  Property. All activities by Purchaser or its representatives during the Inspection Period shall be coordinated  through Sellers’ designated representative, Mike Adams, including, but not limited to, contact with tenants,  and  Sellers  shall  have  the  right  to  have  a  representative  present  during  any  meetings  with  tenants. All  inspections shall occur at reasonable times agreed upon by Sellers and Purchaser and shall be conducted so  as not to unreasonably interfere with use of the Property by Sellers or tenants of the Property. In no event  shall  Purchaser  or  its  representatives  perform  any  off-site  testing.  Purchaser  will  use  its  best  efforts  to  minimize any disruption or interference caused by any such testing and will repair damage caused by such  testing.  Before  and  during  Purchaser  inspections,  Purchaser,  or  the  applicable  Purchaser  representative  conducting any Purchaser inspection, shall maintain (a) commercial general liability insurance with limits  of at least One Million Dollars ($1,000,000) for bodily or personal injury or death, (b) property damage  insurance in the amount of at least One Million Dollars ($1,000,000), and (c) contractual liability insurance.  Purchaser shall deliver to Sellers certificates evidencing and copies of the policies of the commercial general  liability, property damage and contractual liability insurance on the Effective Date. Each such insurance  policy shall be written by a reputable insurance company having a rating of at least “A+:VII” by Best’s  Rating Guide (or a comparable rating by a successor rating service) and shall otherwise be subject to Sellers’  prior approval. Purchaser shall indemnify, defend and hold Sellers and the Property harmless of and from  any and all losses, liabilities, costs, expenses (including, without limitation, reasonable attorneys’ fees and  costs of court), damages, liens, claims (including, without limitation, mechanics’ or materialmen’s liens or  claims of liens), actions and causes of actions arising from or relating to Purchaser’s (or Purchaser’s agents,  employees or representatives) entering upon the Property to test, study, investigate or inspect the same or  any part thereof, whether pursuant to this Section 3.2 or otherwise, except to the extent arising solely from  the gross negligence of Sellers. The foregoing indemnity of Purchaser shall expressly survive the Closing or  the earlier termination of this Agreement.       PURCHASE AGREEMENT                   Page 6   NG-EF2ZLUYJ 089930.000013 4840-7107-2412.7 Purchase and Sale Agreement - Accesso-Timberway and Park Place (Hartman)   4840-7107-2412 v.7.docx  

 

      3.3    Right  of  Termination Sellers  agree  that  in  the  event  Purchaser  determines,  in  its  sole  discretion, that the Property is not suitable for its purposes, then Purchaser shall have the right (“Purchaser’s  Termination Right”) to terminate this Agreement. Purchaser’s Termination Right shall be exercisable only  by sending written notice of termination (the “Notice of Termination”) to Sellers prior to the expiration of  the  Inspection  Period.  In  the  event  that  Purchaser  timely  exercises  Purchaser’s Termination  Right,  this  Agreement shall terminate, and the Earnest Money shall be returned to Purchaser and, upon such termination,  the  Earnest  Money  shall  be returned  to  Purchaser  and  thereafter  neither  party  shall  have  any  further  obligations hereunder except those that expressly survive termination of this Agreement. If Sellers fail to  receive a Notice of Termination prior to the expiration of the Inspection Period, Purchaser shall be deemed  to have approved the Property Documents and the Property in all respects and Purchaser’s Termination Right  under  this  Section  3.3  shall  automatically  and  irrevocably  expire,  except  as  provided  elsewhere  in  this  Agreement. In no event shall Purchaser have any right to terminate this Agreement under this Section 3.3 as  to only a portion of the Property, a termination of this Agreement by Purchaser pursuant to its termination  right under this Section 3.3 shall constitute a termination as to all of the Property.  In the event of Purchaser’s  termination of this Agreement under this Section 3.3 due solely to issues or conditions that Purchaser has  relating solely to one Property, Seller agrees to receive an offer from Purchaser within seven (7) days of such  termination with respect to Purchaser’s purchase of the other Property; provided however, (a) the foregoing  shall not constitute an obligation or agreement on the part of Seller to sell or agree to sell the Property or any  portion thereof to Purchaser after such a termination, (b) the foregoing shall not vest in Purchaser or any  other person or entity any right, title or interest in and to the Property or any portion thereof or any rights to  assert any claims or rights in or to the Property or any portion thereof, and (c) Purchaser shall have no rights  or remedies for any failure of on the part of Seller.         3.4    Payment of Certain Expenses upon Termination. Notwithstanding anything contained in  this  Agreement  to  the  contrary,  in  the  event  that  Purchaser  exercises  Purchaser’s  Termination  Right,  Purchaser shall be responsible for payment of any escrow costs charged by the Title Company in connection  with this Agreement.                                     ARTICLE IV                                                                                CLOSING         4.1    Time and Place. The consummation of the purchase and sale of the Property (“Closing”)  shall  take  place  at  the  office  of the  Escrow Agent  on  the  thirtieth  (30th)  day  after  the  expiration  of  the  Inspection Period (the “Closing Date”); provided, however, the Closing Date shall be extended for one (1)  thirty (30) day period from and after the initial scheduled Closing Date in the event and only in the event  that,  as of the  third (3rd)  business  day  prior  to  the  initial  scheduled  Closing  Date,  Purchaser  shall  have  delivered (i) to Sellers, written notice of such extension and (ii) to Escrow Agent, the sum of One Hundred  Thousand and No/100 Dollars ($100,000.00) in good funds (the “Additional Earnest Money”) as additional  Earnest Money. At Closing, Sellers and Purchaser shall perform the obligations set forth in, respectively,  Section 4.2 and Section 4.3 below, the performance of which obligations shall be concurrent conditions.         4.2    Sellers’ Obligations at Closing. At Closing,                       Park Place Seller shall:                      (i)   deliver to Purchaser a Special Warranty Deed (the “Park Place Deed”) in               the form of Exhibit C attached hereto and made a part hereof for all purposes for the Park               Place Property, executed and acknowledged by Park Place Seller and in recordable form,               it being agreed that the conveyance effected by the Park Place Deed shall be subject to the               Permitted Exceptions;       PURCHASE AGREEMENT                   Page 7   NG-EF2ZLUYJ 089930.000013 4840-7107-2412.7 Purchase and Sale Agreement - Accesso-Timberway and Park Place (Hartman)   4840-7107-2412 v.7.docx  

 

                  (ii)  deliver to Purchaser a Bill of Sale in the form of Exhibit D attached hereto              and made a part hereof for all purposes (the “Bill of Sale”) for the Park Place Property              executed by Park Place Seller;                     (iii) deliver to Purchaser an Assignment of Leases and Security Deposits in the              form of Exhibit E attached hereto and made a part hereof for all purposes for the Park Place              Property executed by Park Place Seller;                     (iv)  deliver to Purchaser an Assignment and Assumption of Intangible Property              and Other Rights in the form of Exhibit F attached hereto and made a part hereof for all              purposes for the Park Place Property executed by Park Place Seller;                     (v)   deliver to Purchaser the letters to tenants at the Park Place Real Estate in              the form of Exhibit G attached hereto and made a part hereof for all purposes executed by              Park Place Seller;                     (vi)  deliver to Purchaser an affidavit sworn by an officer of Park Place Seller              in  the  form  of Exhibit H attached  hereto  and  made  a  part  hereof  for  all  purposes  (the              “FIRPTA Affidavit”), or in such other form as may be prescribed by federal regulations;                     (vii) deliver to Purchaser such tenant estoppel certificates for the Park Place               Property (as described in Section 5.7 hereof) as are in the possession of Park Place Seller;              and                     (viii) deliver to Purchaser possession of the Park Place Property subject to the              Permitted Exceptions.                     Timberway Seller shall:                     (i)   deliver to Purchaser a  Special Warranty Deed (the “Timberway Deed”,              together with the Park Place Deed referred to individually as a “Deed” and collectively as              the “Deeds”) in  the  form  of Exhibit C attached  hereto  and  made  a  part  hereof  for  all              purposes for the Timberway Property, executed and acknowledged by Timberway Seller              and in recordable form, it being agreed that the conveyance effected by the Timberway              Deed shall be subject to the Permitted Exceptions;                     (ii)  deliver to Purchaser a Bill of Sale in the form of Exhibit D attached hereto              and  made  a  part  hereof  for  all  purposes  for  the  Timberway  Property  executed  by              Timberway Seller;                     (iii) deliver to Purchaser an Assignment of Leases and Security Deposits in the              form  of Exhibit E attached  hereto  and  made  a  part  hereof  for  all  purposes  for  the              Timberway Property executed by Timberway Seller;                     (iv)  deliver to Purchaser an Assignment and Assumption of Intangible Property              and Other Rights in the form of Exhibit F attached hereto and made a part hereof for all              purposes for the Timberway Property executed by Timberway Seller;                     (v)   deliver to Purchaser the letters to tenants at the Timberway Real Estate in              the form of Exhibit G attached hereto and made a part hereof for all purposes executed by              Timberway Seller;     PURCHASE AGREEMENT                   Page 8  NG-EF2ZLUYJ 089930.000013 4840-7107-2412.7 Purchase and Sale Agreement - Accesso-Timberway and Park Place (Hartman)  4840-7107-2412 v.7.docx  

 

                   (vi)  deliver to Purchaser FIRPTA Affidavit sworn by an officer of Timberway               Seller in the form of Exhibit H attached hereto and made a part hereof for all purposes, or               in such other form as may be prescribed by federal regulations;                      (vii) deliver to Purchaser such tenant estoppel certificates for the Timberway               Property (as described in Section 5.7 hereof) as are in the possession of Timberway Seller;               and                      (viii) deliver to Purchaser possession of the Timberway Property subject to the               Permitted Exceptions.         4.3    Purchaser’s Obligations at Closing. At Closing, Purchaser shall:                      pay to Sellers the Purchase Price in cash or immediately available funds, it being         agreed that the Earnest Money shall be delivered to Sellers at Closing and applied towards payment         of the Purchase Price.                      deliver  to  Seller  the  instruments  described  in  Sections 4.2(a)(iii)  and  (iv)  and         4.2(b)(iii) and (iv) executed by Purchaser;                      prepare and deliver to Sellers and join with Sellers in the execution of letters to         tenants at the Park Place Real Estate and Timberway Real Estate in the form of Exhibit G attached         hereto and made a part hereof for all purposes.                      deliver to each Seller an Agreement Regarding Disclaimers in the form of Exhibit I         attached hereto and made a part hereof for all purposes executed by Purchaser and counsel for         Purchaser; and                      deliver to Sellers such evidence as Seller’ ‘counsel and/or the Title Company may         reasonably require as to the authority of the person or persons executing documents on behalf of         Purchaser.         4.4    Prorations. The following adjustments to the Purchase Price paid hereunder shall be made  between each Seller (as between each of them individually) and Purchaser with respect to the Property owned  by such Seller and shall be prorated (as applicable) on a per diem basis as if Purchaser owned the Property  for the entire day on the Closing Date (for purposes of this Section 4.4, the term “Seller” shall mean the Park  Place Seller only with respect to the Park Place Property and the Timberway Seller only with respect to the  Timberway Property):                      All real estate taxes and installments of special assessments due and payable with         respect to the calendar year of Closing. All other installments of special assessments not yet due         and payable shall be paid by Purchaser. If at the time of Closing the tax rate or the assessed valuation         for the current year has not yet been fixed, taxes shall be prorated based upon the tax rate and the         assessed  valuation  established  for  the  previous  tax  year;  provided,  however,  that  Sellers  and         Purchaser agree that to the extent the actual taxes for the current year differ from the amount so         apportioned  at  Closing,  the  parties  hereto  will  make  all  necessary  adjustments  by  appropriate         payments between themselves following the Closing within thirty (30) days of demand by the party         upon the other party, and this provision shall survive Closing.                      Current rents, advance rentals (but only to the extent actually received by Seller)         and other income from the Property shall be prorated between Seller and Purchaser at Closing based         upon such amounts actually collected by Seller as of the Closing Date. Rent which is unpaid or      PURCHASE AGREEMENT                   Page 9   NG-EF2ZLUYJ 089930.000013 4840-7107-2412.7 Purchase and Sale Agreement - Accesso-Timberway and Park Place (Hartman)   4840-7107-2412 v.7.docx  

 

      delinquent as of the Closing Date shall not be prorated but shall remain property of Seller. Seller        and Purchaser agree that (A) all rent received by Seller for a specific tenant after the Closing Date        shall be applied first to delinquent rentals of such tenant, if any, in the order of their maturity, and        then to current rentals, and (B) all rent received by Purchaser after the Closing Date shall be applied        first to current rentals and then to delinquent rentals, if any, in inverse order of maturity. Purchaser        will make a good faith effort after Closing to collect all rents (including without limitation the Pass        Through Expenses and percentage rents described in Section 4.4(c) below) in the usual course of        Purchaser’s operation of the Property, but Purchaser will not be obligated to institute any lawsuit        or incur any expense to collect delinquent rents. Notwithstanding the foregoing provisions, Seller        shall not be required to prorate any amounts collected by Seller after Closing from former tenants        of  the  Property,  it  being  understood  and  agreed  that  Seller  may  retain  all  amounts  that  Seller        recovers from such former tenants.                     With  respect  to  additional  rent  attributable  to  insurance,  taxes,  common  area        maintenance and other operating expenses which are passed through to tenants under the Leases        (the “Pass-Through  Expenses”) and  as  of  the  Closing  Date  are  unbilled  or  billed  but  not  yet        collected,  Purchaser  shall,  upon  collection  of  such  Pass-Through  Expenses,  remit  to  Seller  an        amount equal to that portion of Pass-Through Expenses which accrued prior to the Closing Date.        With respect to Pass-Through Expenses which have not been billed to tenants as of the Closing        Date, Purchaser shall bill each tenant for same in accordance with each such tenant’s Lease. With        respect to percentage rents based upon gross sales or other income generated by the business of a        tenant  located  on  the  Property  during  a  specified  period  of  time  (the “Applicable  Period”),        Purchaser shall, upon collection of such percentage rent, remit to Seller an amount equal to the        product of the percentage rent so collected multiplied by a fraction, the numerator of which is the        number of days which have elapsed in the Applicable Period prior to the Closing Date and the        denominator of which is the total number of days in the Applicable Period. Within six (6) months        after the end of the year in which the Closing occurs, Purchaser shall prepare and deliver to Seller        a reconciliation (together with all supporting documentation) of the Pass-Through Expenses for        each Property for Seller’s review. Purchaser’s determination of the reconciliations shall be binding        on the parties unless Seller objects in writing within five (5) business days after Seller’s receipt of        the reconciliations. Seller’s objection as to any reconciliation of a Property must be in an amount        that exceeds ten percent (10%) of the total amount of the reconciliations for such Property. In the        event of an objection by Seller that satisfies the time and threshold requirements set forth in the        preceding sentences, then Seller and Purchaser agree that the determination of which reconciliation        shall control shall be submitted to Cherry Bekaert, LLP, in Fort Lauderdale, FL, whose decision        shall be final and binding on all parties and whose fees and expenses shall be shared equally and        paid  by  Seller  and  Purchaser.   In  the  event  that  any  final  reconciliation shows  either  Seller  or        Purchaser is owed an adjusting payment, then the party owing an adjusting payment shall promptly        remit same to the other party. Seller will provide to Purchaser any and all information, receipts, and        other documentation, in Seller’s possession, reasonably requested by Purchaser to enable Purchaser        to accurately calculate the Pass-Through Expenses reconciliations. This  provision shall survive        Closing.                      Charges under service agreements, utility charges for which Seller is liable, and        other operating expenses of the Property shall be prorated between Seller and Purchaser at Closing.         Final utility readings shall be made, and any adjustments required thereto within thirty (30) days        of the Closing.                     Security  deposits  shall,  at  Seller’s  option,  either  be  transferred  or  credited  to        Purchaser at Closing. Seller shall also transfer to Purchaser any security deposits that are held in        the form of letters of credit (the “Letters of Credit”) if the same are transferable, at Purchaser’s cost     PURCHASE AGREEMENT                  Page 10  NG-EF2ZLUYJ 089930.000013 4840-7107-2412.7 Purchase and Sale Agreement - Accesso-Timberway and Park Place (Hartman)  4840-7107-2412 v.7.docx  

 

      (including Purchaser’s payment of any third party transfer fees and expenses); if any of the Letters        of Credit are not transferable, Seller shall request the tenants obligated under such Letters of Credit        to cause new letters of credit to be issued in favor of Purchaser in replacement thereof and in the        event such new letter of credit is not issued in favor of Purchaser by Closing, Purchaser and Seller        shall  diligently  pursue  such  replacement  after  Closing.  Refundable  cash  or  other  refundable        deposits posted with utility companies or other entities in connection with the Property shall, at        Sellers’ option, either be assigned to Purchaser and credited to Seller at Closing, or Seller shall be        entitled to receive and retain such refundable cash and deposits.                     Purchaser shall be responsible for the payment of (i) all Tenant Inducement Costs        (as hereinafter defined) and leasing commissions which become due and payable after the Effective        Date  as  a  result  of  any  New  Leases  (and  amendments,  extensions,  terminations,  renewals  or        expansions  thereof)  and  any  amendments,  extensions,  terminations,  renewals  or  expansions  of        existing Leases which occur after the Effective Date; and (ii) all Tenant Inducement Costs and        leasing commissions which become due and payable from and after the Closing Date. If as of the        Closing Date Seller shall have paid any Tenant Inducement Costs or leasing commissions for which        Purchaser is responsible  pursuant to the  foregoing provisions,  Purchaser shall reimburse Seller        therefor at Closing. Seller shall supply invoices and statements for all such Tenant Inducement        Costs and leasing commissions to Purchaser on or prior to the Closing Date. To the best of Seller’s        knowledge,  attached  hereto  as Schedule  4.4(f) is  a  true  and  correct  list  of  all  of  the  Tenant        Inducement Costs due as of the Effective Date. For purposes hereof, the term “Tenant Inducement        Costs” means reasonable attorneys’ fees and costs incurred in connection with the preparation and        negotiation of a new Lease (and amendments, extensions, terminations, renewals or expansions        thereof) or an amendment, extension, termination, renewal or expansion of an existing Lease and        any and all out-of-pocket payments required under a new Lease (and amendments, extensions,        terminations, renewals or expansions thereof) or an amendment, extension, termination, renewal or        expansion of an existing Lease to be paid by the landlord thereunder to or for the benefit of the        tenant thereunder which is in the nature of a tenant inducement, including specifically, without        limitation, tenant improvement costs, lease buyout costs, and moving, design, refurbishment and        club membership allowances. The term “Tenant Inducement Costs” shall include loss of income        resulting from any free rental period, it being agreed that Purchaser shall bear such loss from and        after the Effective Date.                     The Personal Property is included in this sale, without further charge, except that        Purchaser shall pay to Seller the amount of any and all sales or similar taxes payable in connection        with  the  Personal  Property  which  is  to  be  transferred  to  Purchaser  under  this Agreement  and        Purchaser shall execute and deliver any tax returns required of it in connection therewith, said        obligations of Purchaser to survive Closing.                     All  prorations  described  in  this  Section 4.4  shall  be  effected  by  increasing  or        decreasing, as appropriate, the amount of cash to be paid by Purchaser to Seller at Closing. Except        for  the  prorations  described  in  Sections 4.4(a),  4.4(b),  4.4(c)  and  4.4(d)  above,  all  prorations        provided for herein shall be final. The proration of taxes described in Section 4.4(a) above shall be        deemed  final  if  no  adjustment  thereto  is  requested  within  one  (1)  year  after  Closing.  Upon        Purchaser’s prior written request, for a period of six (6) months following the Closing, Seller shall        make  Seller’s  books  and  records  available  to  Purchaser  during  normal  business  hours  for        inspection, copying and audit by Purchaser’s designated accountants, at Purchaser’s expense, in        order to comply with any Securities and Exchange Commission requirements related to Rule 3-14        of Regulation S-X.  In no event shall Seller incur any liability whatsoever in conjunction with any        related audit.     PURCHASE AGREEMENT                  Page 11  NG-EF2ZLUYJ 089930.000013 4840-7107-2412.7 Purchase and Sale Agreement - Accesso-Timberway and Park Place (Hartman)  4840-7107-2412 v.7.docx  

 

      4.5    Closing  Costs.  Sellers  shall  pay  (to  be  allocated  by  them)  (a) the  fees  of  any  counsel  representing them in connection with this transaction; (b) the basic premium for the Owner’s Policy of Title  Insurance to be issued to Purchaser by the Title Company at Closing (specifically excluding the additional  premium chargeable for modification of the survey exception, which deletion expense shall be borne by  Purchaser); (c) the fees for recording the Park Place Deed and the Timberway Deed; and (d) one-half (1⁄2) of  any escrow fee which may be charged by the Title Company and (e) the cost for the Updated Survey not to  exceed Twenty Thousand Dollars ($20,000.00). Purchaser shall pay (v) the fees of any counsel representing  Purchaser in connection with this transaction; (w)  the additional premium chargeable for modification of  the survey exception, if such modification is desired by Purchaser; (x) any transfer tax, documentary stamp  tax,  sales  tax  or  similar  tax  which  becomes  payable  by  reason of  the  transfer  of  the  Property  or  any  component thereof; and (y) one-half (1⁄2) of any escrow fees charged by the Title Company. All other costs  and expenses incident to this transaction and the closing thereof shall be paid by the party incurring same.         4.6    Delivery of Documents. Immediately after Closing, Sellers shall direct the manager of the  Property to make available at the offices of such manager all books and records of account, contracts, leases  and leasing correspondence, receipts for deposits, unpaid bills and other papers or documents which pertain  to the operation of the Property together with all advertising materials, booklets, keys and other items, if any,  used in the operation of the Property. Sellers makes no representations regarding the existence or adequacy  of such documents or items for use in management or operation of the Property. The foregoing shall not  include the separate books, records, correspondence and other documentation of Sellers located at its offices,  nor shall it include any computer software or computer programs used by the manager of the Property or  Sellers in connection with the Property, it being understood and agreed that the foregoing items are not part  of the “Property” to be conveyed to Purchaser hereunder. After the Closing, Sellers shall have the right to  inspect the books and records of the Property to verify that Purchaser is remitting to each Seller all amounts  to be remitted to each Seller according to the terms of this Agreement, and for any other purpose related to  each Seller’s prior ownership of the Property, and this provision shall survive Closing.         4.7    Intentionally Deleted.                                       ARTICLE V                                                            REPRESENTATIONS, WARRANTIES, AND COVENANTS         5.1          Representations and Warranties of Sellers. As of the Effective Date, each Seller  represents and warrants to Purchaser as follows with respect to and only with respect to such Seller or the  portion of the Property owned by such Seller, as applicable (for purposes of this Section 5.1, the term “Seller”  shall mean the Park Place Seller only with respect to the Park Place Seller and the Park Place Property and  mean the Timberway Seller only with respect to the Timberway Seller and the Timberway Property):                Seller is organized, validly existing and in good standing under the laws of the state of its    formation. Seller has the limited liability company or appropriate entity right, power and authority to sell    and convey the Property as provided in this Agreement and to carry out Seller’s obligations hereunder.    The individuals executing this Agreement on behalf of Seller have the right, power and authority to do    so and this Agreement constitutes the legal, valid and binding obligation of Seller.                      The  execution  and  delivery  of  this  Agreement  and  the  consummation  of  the         transaction contemplated hereby will not result in any breach of the terms, conditions or constitute         a default under any instrument or obligation to which Seller is now a party.                      Seller is not a “foreign person” as defined in Section 1445 of the Internal Revenue         Code of 1986, as amended, and any related regulations.       PURCHASE AGREEMENT                  Page 12   NG-EF2ZLUYJ 089930.000013 4840-7107-2412.7 Purchase and Sale Agreement - Accesso-Timberway and Park Place (Hartman)   4840-7107-2412 v.7.docx  

 

                  To Seller’s knowledge, there are no parties in possession of any portion of the        Property except Seller and Tenants under the Leases or any subleases, parking leases or rooftop        leases.                     The documents heretofore or hereafter delivered or otherwise made available for        viewing to Purchaser include true and complete copies of the Leases used by Seller and Seller’s        property manager in the day-to-day operation and management of the Property and the current rent        roll used by Seller and Seller’s property manager in the operation of the Property.                     The Property Documents delivered to or otherwise made available for viewing by        Purchaser pursuant to Section 3.1 above are copies of those documents utilized by Seller in its        operations.                      To Seller’s knowledge, there is no action, suit, proceeding, claim or governmental        investigation  pending  or  threatened  against  the  Property  or  any  portion  thereof  and  no  written        notices have been received by Seller from any insurance company which has issued a policy with        respect  to  any  portion  of  the  Property,  or  by  any  Board  of  Fire  Underwriters  (or  other  body        exercising similar functions), requesting the performance of any repairs, alterations, or other work        which has not been complied with.                     Seller is not a person with whom Purchaser is prohibited from engaging in this        transaction  due  to  any  United  States  government  embargos,  sanctions,  or  terrorism  or  money        laundering  laws,  including,  without  limitation,  due  to  Seller  being  (1) subject  to  United  States        government embargos  or  sanctions,  (2) in  violation  of  terrorism  or  money  laundering  laws,  or        (3) listed on a published United States government list (e.g., Specially Designated Nationals and        Blocked Persons List maintained by the Office of Foreign Assets Control or other lists of similar        import).                     To  Seller’s  knowledge,  Seller  has  received  no  written  notification from  any        governmental authority that all or some portion of the Real Estate or the Improvements violates        any Environmental Laws (as defined below).  As used herein, the term “Environmental Laws” shall        mean all federal, state  and local environmental laws, rules, statutes,  directives, binding written        interpretations, binding written policies, ordinances and regulations issued by any governmental        authority and in effect as of the date of this Agreement with respect to or which otherwise pertain        to or affect the  Hazardous Substances  on the  Real Estate  or the  Improvements,  or any portion        thereof, and as same have been amended, modified or supplemented from time to time prior to the        date  of  this  Agreement,  including  but  not  limited  to  CERCLA,  the  Hazardous  Substances        Transportation Act (49 U.S.C. § 1802 et seq.), RCRA, the Water Pollution Control Act (33 U.S.C.        § 1251  et seq.),  the  Safe  Drinking  Water  Act  (42 U.S.C.  § 300f  et seq.),  the  Clean  Air  Act        (42 U.S.C.  § 7401  et seq.),  the  Solid Waste  Disposal Act  (42 U.S.C.  § 6901  et seq.),  the Toxic        Substances Control Act (15 U.S.C. § 2601 et seq.), the Emergency Planning and Community Right-       to-Know Act of 1986 (42 U.S.C. § 11001 et seq.), the Radon and Indoor Air Quality Research Act        (42 U.S.C. § 7401 note, et seq.), SARA, comparable state and local laws, and any and all rules and        regulations which have become effective prior to the date of this Agreement under any and all of        the aforementioned laws.  As used herein, “Hazardous Substances” means all hazardous or toxic        materials,  substances,  pollutants,  contaminants,  or  wastes  currently  identified  as  a  hazardous        substance or waste in the Comprehensive Environmental Response, Compensation and Liability        Act  of 1980  (commonly  known  as “CERCLA”), as  amended,  the  Superfund Amendments  and        Reauthorization Act (commonly known as “SARA”), the Resource Conservation and Recovery Act        (commonly  known  as “RCRA”), or  any  other  federal,  state or  local  legislation  or  ordinances        applicable to the Real Estate or the Improvements.       PURCHASE AGREEMENT                  Page 13  NG-EF2ZLUYJ 089930.000013 4840-7107-2412.7 Purchase and Sale Agreement - Accesso-Timberway and Park Place (Hartman)  4840-7107-2412 v.7.docx  

 

                   To  Seller’s  knowledge,  there  is  no  pending  public  improvements  in,  about  or         outside the Property which will in any manner affect direct access into the Property or result in         additional assessments against the Property.                      Except as otherwise expressly provided in this Agreement, all ad valorem taxes on         the Property for tax years prior to the current calendar year and any special assessments affecting         the Property or any part thereof, have been paid in full in accordance with their terms and there are         no  deferred  ad  valorem  taxes  for  prior  years  or  unpaid  special  assessments  pertaining  to  the         Property and Seller has not received any notice and has no knowledge of any pending or threatened         liens, special assessments, impositions or increase in assessed valuations to be made against the         Property by any governmental authority.                      No attachment, execution, assignment for the benefit of creditors, receivership,         conservatorship or voluntary or involuntary proceedings in bankruptcy or pursuant to any other         debtor relief laws is contemplated or has been filed by or against Seller or the Property, nor is any         such action pending by or against Seller or the Property.         5.2    Notice of Breach.                      To the extent that, before the expiration of the Inspection Period, Purchaser obtains         actual knowledge or is deemed to know that a Seller’s representations and warranties are inaccurate,         untrue or incorrect in any way, such representations and warranties shall be deemed modified to         reflect such actual or deemed knowledge as of the end of the Inspection Period. For purposes hereof,         Purchaser shall be deemed to know all information set forth in the written materials delivered or         made available to or obtained by or on behalf of Purchaser in respect of the Property.                      If after the expiration of the Inspection Period but prior to the Closing, Purchaser         first obtains actual knowledge that any of the representations or warranties made herein by a Seller         are untrue, inaccurate or incorrect in any material respect, Purchaser shall give such Seller written         notice thereof within five (5) days after obtaining such actual knowledge (but, in any event, prior         to the Closing). In such event, such Seller shall have the right (but not the obligation) to attempt to         cure  such  misrepresentation  or  breach  and  shall,  at  its  option,  be  entitled  to  a  reasonable         adjournment of the Closing (not to exceed thirty (30) days) for the purpose of such cure. If such         Seller elects  to  attempt  to so  cure but  is  unable  to  so  cure  any  misrepresentation  or  breach  of         warranty, then Purchaser, as its sole remedy for any and all such materially untrue, inaccurate or         incorrect representations or warranties, shall elect either (i) to waive such misrepresentations or         breaches of representations and warranties and consummate the transaction contemplated hereby         without any reduction of or credit against the Purchase Price, or (ii) if Purchaser first obtained         actual knowledge of such material misrepresentation or breach of warranty after the end of the         Inspection Period, to terminate this Agreement in its entirety by written notice given to Sellers on         the Closing Date, in which event this Agreement shall be terminated, the Earnest Money shall be         returned  to  Purchaser, and  thereafter  neither  party  shall  have  any  further  rights  or  obligations         hereunder except as provided  in any section hereof that by its terms  expressly provides that it         survives any termination of this Agreement.         5.3    Survival of Representations. It is the intent of Sellers and Purchaser that the representations  and warranties made by Sellers in Section 5.1 above (the “Sellers Obligations”) shall survive Closing for a  period of six (6) months after the date of Closing. Accordingly, Purchaser and each Seller hereby agree that,  notwithstanding any provision of this Agreement or any provision of law to the contrary, any action which  may be brought under this Agreement by Purchaser against such Seller for breach of any of such Seller’s  Seller Obligations shall be forever barred unless Purchaser (a) delivers to such Seller no later than one year       PURCHASE AGREEMENT                  Page 14   NG-EF2ZLUYJ 089930.000013 4840-7107-2412.7 Purchase and Sale Agreement - Accesso-Timberway and Park Place (Hartman)   4840-7107-2412 v.7.docx  

 

after the date of Closing a written notice of its claim setting forth in reasonable detail the factual basis for  such claim and Purchaser’s good faith estimate of its damages arising out of such claim, and (b) files a  complaint or petition against such Seller alleging such claim in an appropriate state or federal court in Harris  County, Texas, no later than Two  (2) years after the date of Closing. In no event shall any Seller be liable  after the  date  of Closing for its  breach  of any Seller Obligations  if such breach was actually known to  Purchaser prior to the completion of Closing. With respect to any matter constituting breach of a Seller  Obligation, Purchaser shall first seek any available recovery under any insurance policies, service contracts  and Leases prior to seeking recovery from such Seller, and such Seller shall not be liable to Purchaser if  Purchaser’s claim is satisfied from such insurance policies, service contracts or Leases. Sellers’ liability for  breach of any Seller Obligations shall be limited as follows: (i) Sellers shall have liability for breach of Seller  Obligations only if the valid claims for all such breaches collectively aggregate more than Twenty-Five  Thousand  Dollars  ($25,000),  in  which  event  the  full  amount  of  such  claims  shall  be  actionable,  and  (ii) Sellers’ aggregate liability to Purchaser for breaches of the Seller Obligations shall not exceed the amount  of Five Hundred Thousand Dollars ($500,000.00) (the “Cap”), it being agreed that in no event shall Sellers’  aggregate liability for such breaches exceed the amount of the Cap.         5.4    Covenants of Sellers. Each Seller hereby covenants as follows with respect to and only  with respect to such Seller or the portion of the Property owned by such Seller, as applicable (for purposes  of this Section 5.4, the term “Seller” shall mean the Park Place Seller only with respect to the Park Place  Property and mean the Timberway Seller only with respect to the Timberway Property):                      Between the Effective Date and the Closing Date, Seller shall maintain all casualty,         liability and hazard insurance currently in force with respect to the Property; and                      Between  the  Effective  Date  and  the  Closing  Date,  Seller  shall  lease,  operate,         manage and enter into contracts with respect to the Property, in the same manner done by Seller         prior to the date hereof, maintaining present services and sufficient supplies and equipment for the         operation and maintenance of the Property in the same manner as prior to the date hereof; provided,         however, that Seller shall not enter into any service contract that cannot be terminated within thirty         (30) days’ notice. Seller shall terminate, by giving notice at Closing, any service contracts that         Purchaser does not elect to assume (which election shall be made in writing by Purchaser to Seller         on or prior to the expiration of the Inspection Period), provided that Purchaser shall be responsible         for any termination fees incurred in connection with the same if such fees were set forth in the         service contracts made available by Seller for review by Purchaser or otherwise disclosed in writing         to Purchaser.                      At any time after the Effective Date, Seller shall not, without Purchaser’s consent,         enter  into  any  new  Lease or  amendment,  renewal,  expansion,  termination  or  extension  of  any         existing Lease.  If Purchaser’s consent is requested by Seller, Purchaser agrees to notify Seller in         writing  within  five  (5)  business  days  after  its  receipt  of  such  request  of  either  its  approval  or         disapproval thereof, which approval shall not be unreasonably withheld. In the event Purchaser         fails to notify Seller in writing of its approval or disapproval within the five-day period for such         purpose set forth above, such failure shall be deemed the approval by Purchaser of such new Lease         or amendment, renewal, expansion, termination or extension of any existing Lease.  At Closing,         Purchaser shall assume in writing (pursuant to the Assignment of Leases and Security Deposits)         Seller’s obligations (whether arising before or after the Closing Date) under the Leases, including         all such approved new Leases and amendments, renewals, expansions, terminations and extensions         of any existing Leases.        PURCHASE AGREEMENT                  Page 15   NG-EF2ZLUYJ 089930.000013 4840-7107-2412.7 Purchase and Sale Agreement - Accesso-Timberway and Park Place (Hartman)   4840-7107-2412 v.7.docx  

 

                   Between the  Effective  Date  and the Closing Date,  Seller will advise  Purchaser         promptly of any litigation, arbitration or administrative hearing concerning or affecting the Property         of which Seller has notice.         5.5    Actual Knowledge of Sellers. All references in this Agreement to the “actual knowledge”  of  Seller  or “to  Seller’s  knowledge” shall  refer  only  to  the  actual  knowledge  of  the  Seller  Designated  Employee (as hereinafter defined) and shall not be construed to refer to the knowledge of any other officer,  agent or employee of Seller or any affiliate of Seller or to impose upon such Seller Designated Employee  any duty to investigate the matter to which such actual knowledge, or the absence thereof, pertains.  As used  herein, the term “Seller Designated Employee” shall refer to Michael Adams, an employee of Seller who has  responsibility for overseeing the management of the Property, among other assets of Seller.         5.6    Covenants of Purchaser. Purchaser hereby covenants as follows:                      During the Inspection Period, Purchaser shall obtain a “Phase I” environmental         report prepared for and at the expense of Purchaser with respect to the Property by an environmental         consultant selected by Purchaser.                      If requested to do so by Sellers in writing and upon payment therefore of the costs         of obtaining such reports, at Closing (or upon termination of this Agreement prior to Closing),         Purchaser  shall  deliver  to  Sellers  copies  of  any  environmental  reports,  engineering  reports,         structural reports or other due diligence materials prepared by third parties obtained by Purchaser         with respect to the Property.                      Purchaser is currently in compliance with, and shall at all times during the term of         this Agreement (including any extension thereof) remain in compliance with, the regulations of         OFAC  and  any  statute,  executive  order  (including  the  September  24,  2001,  Executive  Order         Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit,         or Support Terrorism), or other governmental action relating thereto.         5.7    Actual  Knowledge  of  Purchaser.  All  references  in  this  Agreement  to  the “actual  knowledge” of Purchaser or “to Purchaser’s knowledge” shall refer only to the actual knowledge of the  Purchaser  Designated  Employees  (as  hereinafter  defined)  and  shall  not  be  construed  to  refer  to  the  knowledge of any other officer, agent or employee of Purchaser or any affiliate of Purchaser or to impose  upon such Purchaser Designated Employees.  As used herein, the term “Purchaser Designated Employees”  shall refer to Allen  R.  Hartman,  Patrick Windley,  David Wheeler,  Louis T.  Fox  III  and  Mark T. Torok,  executive officers of Purchaser who have responsibility for overseeing the management of Purchaser.         5.8    Tenant Estoppels. Each Seller shall use reasonable efforts to obtain prior to Closing an  estoppel certificate, in form substantially in accordance with Exhibit J attached hereto and made a part hereof  for all purposes as such form may be modified pursuant to requirements in each tenant’s lease (the “Estoppel  Certificate”), from each tenant under the Leases for the portion of the Property owned by such Seller. Seller  shall be required to obtain an Estoppel Certificate from all tenants occupying more than 10,000 square feet  of rental space and of tenants of not less than seventy percent (70%) of the occupied rentable square footage  of  the  Park  Place  Improvements  or Timberway  Improvements  (respectively)  owned  by  such  Seller (the  “Required Estoppels”). In the event a Seller is unable to procure the Required Estoppels, the Seller may  extend the Closing Date for up to thirty (30) days to allow Seller to obtain such estoppels. In the event that  a Seller is not able to provide the Required Estoppels within the time permitted hereunder, then Purchaser  may terminate this Agreement upon written notice to Sellers delivered not later than Closing and receive the  return of the Earnest Money as its sole remedy.        PURCHASE AGREEMENT                  Page 16   NG-EF2ZLUYJ 089930.000013 4840-7107-2412.7 Purchase and Sale Agreement - Accesso-Timberway and Park Place (Hartman)   4840-7107-2412 v.7.docx  

 

                                  ARTICLE VI                                                                          DEFAULT; REMEDIES         6.1    Default of Purchaser. In the event Purchaser fails to perform its obligations pursuant to this  Agreement for any reason except failure by Sellers to perform hereunder or the permitted termination hereof  by Purchaser or Sellers in accordance with the express provisions hereof, Sellers shall be entitled, as their  sole remedy, to terminate this Agreement and recover the Earnest Money as liquidated damages and not as  a penalty, in full satisfaction of claims against Purchaser hereunder. Sellers and Purchaser agree that Sellers’  damages resulting from Purchaser’s default are difficult, if not impossible, to determine and that the Earnest  Money is a fair estimate of those damages which has been agreed to in an effort to cause the amount of said  damages to be certain. In the event of Purchaser’s default and notwithstanding anything in this Section 6.1  to the contrary, Sellers shall have all remedies available at law or in equity in the event Purchaser or any  party  related  to  or  affiliated  with  Purchaser  is  asserting  any  claims  or  right  to  the  Property  that  would  otherwise delay or prevent any Seller from having clear, indefeasible and marketable title to the Property,  except for a lis pendens filed in connection with a then existing action for specific performance filed pursuant  to Section 6.2 below.         6.2    Default  of  Seller.  In  the  event  a  Seller fails  to  perform  its  obligations  pursuant  to  this  Agreement for any reason except failure by Purchaser to perform hereunder or the permitted termination  hereof by Purchaser or Sellers in accordance with the express provisions hereof, Purchaser may (i) terminate  this Agreement by giving Sellers timely written notice of such election prior to or at Closing, in which event  Purchaser shall be entitled to receive back the Earnest Money (together with all interest earned thereon) and,  additionally, Purchaser shall be  entitled to recover from Sellers  the  reasonable out-of-pocket third-party  expenses  (reasonably  documentation of  which  has  been  presented  to  Sellers)  incurred  by  Purchaser  in  connection with this transaction, not to exceed Seventy-Five Thousand and 00/100 Dollars ($75,000.00), or  (ii) pursue an action for specific performance, provided that any action for specific performance shall be  commenced within thirty (30) days after such default, it being understood that if Purchaser fails to commence  an action for specific performance within thirty (30) days after such default, Purchaser’s sole remedy shall  be  item (i) preceding. Purchaser shall have  no right to seek specific  performance  if any Seller shall be  prohibited  from  performing  its  obligations  hereunder  by  reason  of  any  law,  regulation  or  other  legal  requirement applicable to such Seller.  In no event shall Sellers be liable for any special, punitive, speculative  or consequential damages (the foregoing shall not limit Purchaser’s rights to recover actual damages under  Section  5.3  above.  The  remedies  set  forth  in  this  Section 6.2  shall  be  the  sole  and  exclusive  remedies  available to Purchaser for any Seller’s failure to close the transaction which is the subject of this Agreement  in accordance with the provisions of this Agreement.          6.3    Post-Closing Remedies. Notwithstanding the provisions of Sections 6.1 and 6.2 above, in  the event that after the termination of this Agreement or after Closing, as the case may be, a party (the  “Defaulting  Party”) breaches  an  obligation  hereunder  which  is  expressly  stated  herein  to  survive  the  termination of this Agreement or Closing, as the case may be, the Defaulting Party shall be liable to the other  party (the “Non-Defaulting Party”) for the direct, actual damages incurred by the Non-Defaulting Party as a  direct result of such  breach. In no event shall the  Non-Defaulting Party be entitled to recover from the  Defaulting Party any punitive, consequential or speculative damages.                                     ARTICLE VII                                                                              RISK OF LOSS         7.1    Minor Damage. In the event of loss or damage to the Property or any portion thereof (the  “premises in question”) which is not “major” (as hereinafter defined), this Agreement shall remain in full       PURCHASE AGREEMENT                  Page 17   NG-EF2ZLUYJ 089930.000013 4840-7107-2412.7 Purchase and Sale Agreement - Accesso-Timberway and Park Place (Hartman)   4840-7107-2412 v.7.docx  

 

force  and  effect  provided  Sellers,  at  Sellers’ option,  (i) performs  any  necessary  repairs;  (ii) assigns  to  Purchaser all of Sellers’ right, title and interest to any claims and proceeds Sellers may have with respect to  any  casualty  insurance  policies  or  condemnation  awards  relating  to  the  premises  in  question  plus  any  applicable deductible (reduced by any costs and expenses incurred by Seller in connection with such loss or  damages or condemnation); or (iii) reduces the cash portion of the Purchase Price in an amount equal to the  cost of such repairs, Sellers thereby retaining all of Sellers’ right, title and interest to any claims and proceeds  Sellers may have with respect to any casualty insurance policies or condemnation awards relating to the  premises in question. In the event that Sellers elect to perform repairs upon the Property, Sellers shall use  reasonable efforts to complete such repairs promptly and the date of Closing shall be extended a reasonable  time in order to allow for the completion of such repairs.         7.2    Major Damage. In the event of a “major” loss or damage, either Sellers or Purchaser may  terminate this Agreement by written notice to the other party, in which event the Earnest Money shall be  returned to Purchaser. If neither Sellers nor Purchaser elects to terminate this Agreement within ten (10) days  after Sellers sends Purchaser written notice of the occurrence of major loss or damage, then Sellers and  Purchaser shall be deemed to have elected to proceed with Closing, in which event Sellers shall, at Sellers’  option, either (a) perform any necessary repairs, or (b) assign to Purchaser all of Sellers’ right, title and  interest to any claims and proceeds Sellers may have with respect to any casualty insurance policies or  condemnation awards relating to the premises in question and pay any applicable deductible to Purchaser  (reduced  by  any  costs  and  expenses  incurred  by  Seller  in  connection  with  such  loss  or  damages  or  condemnation).  In  the  event  that Sellers  elect  to  perform  repairs  upon  the  Property,  Sellers  shall  use  reasonable efforts to complete such repairs promptly and the date of Closing shall be extended a reasonable  time in order to allow for the completion of such repairs. Upon Closing, full risk of loss with respect to the  Property shall pass to Purchaser. For purposes of Sections 7.1 and 7.2, “major” loss or damage refers to the  following: (i) loss or damage to the Property or any portion thereof such that the cost of repairing or restoring  the premises in question to a condition substantially identical to that of the premises in question prior to the  event of damage would be, in the certified opinion of a mutually acceptable architect, equal to or greater  than ten percent (10%) of the Purchase Price; and (ii) any loss due to a condemnation which permanently  and materially impairs the current use of the Property.         7.3    Uniform Vendor and Purchaser Risk Act Not Applicable. It is the express intent of the  parties hereto that the provisions of Sections 7.1 and 7.2 govern the rights of the parties in the event of  damage  to  or  condemnation  of  the  Property  and  that  the  Uniform  Vendor  and  Purchaser  Risk  Act  (Section 5.007 of the Texas Property Code) not apply to this Agreement.                                     ARTICLE VIII                                                                       DISCLAIMERS AND WAIVERS         8.1    No Reliance  on  Documents.  Except  as  expressly  stated  herein,  Sellers  makes  no  representations or warranties as to the truth, accuracy or completeness of any materials, data or information  delivered by either Seller to Purchaser in connection with the transaction contemplated hereby (including  specifically,  without  limitation,  the  Property  Documents).  Purchaser  acknowledges  and  agrees  that  all  materials,  data  and  information  delivered  by  a  Seller  to  Purchaser  in  connection  with  the  transaction  contemplated hereby (including specifically, without limitation, the Property Documents) are provided to  Purchaser as a convenience only and that any reliance on or use of such materials, data or information by  Purchaser shall be at the sole risk of Purchaser, except as otherwise expressly stated herein. Without limiting  the generality of the foregoing provisions, if any budget or similar document is delivered by a Seller to  Purchaser, such Seller makes no representations or warranties as to the accuracy thereof, nor shall any such  document be construed to impose upon such Seller any duty to spend the amounts set forth in such budget  or other document.       PURCHASE AGREEMENT                  Page 18   NG-EF2ZLUYJ 089930.000013 4840-7107-2412.7 Purchase and Sale Agreement - Accesso-Timberway and Park Place (Hartman)   4840-7107-2412 v.7.docx  

 

      8.2    Disclaimers.  EXCEPT AS  EXPRESSLY  SET  FORTH  IN  THIS AGREEMENT,  IT  IS  UNDERSTOOD AND AGREED THAT SELLERS ARE NOT MAKING AND HAVE NOT AT ANY TIME  MADE ANY WARRANTIES OR REPRESENTATIONS OF ANY KIND OR CHARACTER, EXPRESS  OR IMPLIED, WITH RESPECT TO THE PROPERTY, INCLUDING, BUT NOT LIMITED TO, ANY  WARRANTIES  OR  REPRESENTATIONS AS TO  HABITABILITY, MERCHANTABILITY, FITNESS  FOR A PARTICULAR PURPOSE, TITLE (OTHER THAN EACH SELLER’S WARRANTY OF TITLE  TO BE SET FORTH IN SUCH SELLER’S DEED), ZONING, TAX CONSEQUENCES, PHYSICAL OR  ENVIRONMENTAL  CONDITION,  UTILITIES,  OPERATING  HISTORY  OR  PROJECTIONS,  VALUATION,  GOVERNMENTAL  APPROVALS,  THE  COMPLIANCE  OF  THE  PROPERTY  WITH  GOVERNMENTAL  LAWS, THE TRUTH, ACCURACY  OR  COMPLETENESS  OF THE  PROPERTY  DOCUMENTS OR ANY OTHER INFORMATION PROVIDED BY OR ON BEHALF OF ANY SELLER  TO  PURCHASER,  OR  ANY  OTHER  MATTER  OR  THING  REGARDING  THE  PROPERTY.  PURCHASER ACKNOWLEDGES AND AGREES  THAT  UPON  CLOSING  EACH  SELLER  SHALL  SELL AND CONVEY TO PURCHASER AND PURCHASER SHALL ACCEPT THE PROPERTY       “AS  IS,  WHERE  IS,  WITH  ALL  FAULTS,” EXCEPT  TO  THE  EXTENT  EXPRESSLY  PROVIDED  OTHERWISE IN THIS AGREEMENT. PURCHASER HAS NOT RELIED AND WILL NOT RELY ON,  AND  SELLERS  ARE  NOT  LIABLE  FOR  OR  BOUND  BY,  ANY  EXPRESS  OR  IMPLIED  WARRANTIES,  GUARANTIES,  STATEMENTS,  REPRESENTATIONS  OR  INFORMATION  PERTAINING  TO  THE  PROPERTY  OR  RELATING  THERETO  MADE  OR  FURNISHED  BY ANY  SELLER,  THE  MANAGER  OF  THE  PROPERTY, OR ANY  REAL  ESTATE  BROKER  OR AGENT  REPRESENTING OR PURPORTING TO REPRESENT ANY SELLER, TO WHOMEVER MADE OR  GIVEN, DIRECTLY OR INDIRECTLY, VERBALLY OR IN WRITING, UNLESS SPECIFICALLY SET  FORTH IN THIS AGREEMENT. PURCHASER REPRESENTS TO SELLERS THAT PURCHASER HAS  CONDUCTED,  OR  WILL  CONDUCT  PRIOR  TO  CLOSING,  SUCH  INVESTIGATIONS  OF  THE  PROPERTY,  INCLUDING  BUT  NOT  LIMITED  TO,  THE  PHYSICAL  AND  ENVIRONMENTAL  CONDITIONS THEREOF, AS PURCHASER DEEMS NECESSARY 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 ANY  SELLER  OR  ITS AGENTS  OR  EMPLOYEES  WITH  RESPECT  THERETO,  OTHER  THAN  SUCH  REPRESENTATIONS,  WARRANTIES AND COVENANTS OF ANY SELLER AS ARE EXPRESSLY SET FORTH IN THIS  AGREEMENT.  UPON  CLOSING,  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  SELLERS  FROM AND AGAINST ANY AND  ALL CLAIMS,  DEMANDS, CAUSES OF ACTION  (INCLUDING CAUSES  OF ACTION  IN TORT),  LOSSES,  DAMAGES,  LIABILITIES,  COSTS AND  EXPENSES  (INCLUDING ATTORNEYS’ FEES  AND COURT COSTS) OF ANY AND EVERY KIND OR CHARACTER, KNOWN OR UNKNOWN,  WHICH PURCHASER MIGHT HAVE ASSERTED OR ALLEGED AGAINST ANY SELLER AT ANY  TIME  BY  REASON  OF  OR  ARISING  OUT  OF  ANY  CONSTRUCTION  DEFECTS,  PHYSICAL  CONDITIONS, VIOLATIONS OF ANY APPLICABLE LAWS (INCLUDING ANY ENVIRONMENTAL  LAWS)  AND  ANY  AND  ALL  OTHER  ACTS,  OMISSIONS,  EVENTS,  CIRCUMSTANCES  OR  MATTERS  REGARDING  THE  PROPERTY;  PROVIDED,  HOWEVER,  THAT  THE  FOREGOING  PROVISION SHALL NOT BE CONSTRUED TO LIMIT ANY REMEDY PROVIDED TO PURCHASER  UNDER  SECTION 6.3  OF  THIS  AGREEMENT.  PURCHASER  AGREES  THAT  SHOULD  ANY  CLEANUP,  REMEDIATION  OR  REMOVAL  OF  HAZARDOUS  SUBSTANCES  OR  OTHER  ENVIRONMENTAL  CONDITIONS  ON  THE  PROPERTY  BE  REQUIRED  AFTER  THE  DATE  OF  CLOSING, SUCH CLEAN-UP, REMOVAL OR REMEDIATION SHALL BE THE RESPONSIBILITY OF  AND SHALL BE PERFORMED AT THE SOLE COST AND EXPENSE OF PURCHASER.      PURCHASE AGREEMENT                  Page 19   NG-EF2ZLUYJ 089930.000013 4840-7107-2412.7 Purchase and Sale Agreement - Accesso-Timberway and Park Place (Hartman)   4840-7107-2412 v.7.docx  

 

      8.3    Waivers of Deceptive Trade Practices Act. Purchaser acknowledges and agrees, on its own  behalf and on behalf of its assigns and successors, that the Texas Deceptive Trade Practices — Consumer  Protection Act, Subchapter E of Chapter 17 of the Texas Business and Commerce Code (the “DTPA”), is not  applicable to this transaction. Accordingly, Purchaser’s rights and remedies with respect to this transaction,  and with respect to all acts or practices of the other, past, present or future, in connection with this transaction,  shall be  governed  by  legal  principles  other than  the  DTPA.  In  furtherance  thereof,  Purchaser  agrees  as  follows:                      Purchaser represents that it is a business consumer and that it seeks to acquire by         purchase or lease the goods or services that are the subject of this Agreement for commercial or         business use. Purchaser further represents that it has knowledge and experience in financial and         business matters that enable it to evaluate the merits and risks of the business transaction that is the         subject  of  this Agreement.  Purchaser  also  represents  that  it  is  not  in  a  significantly  disparate         bargaining position in relation to Seller.                      Purchaser represents that it has been represented by legal counsel in seeking or         acquiring  the  goods  or  services  that are  the  subject of  this Agreement  and  that  the  transaction         contemplated  by  this Agreement  does  not  involve  the  purchase  or  lease  of  a  family  residence         occupied or to be occupied as the residence of Purchaser. Purchaser shall cause its legal counsel to         sign  this  Agreement  in  the  space  provided  below  for  the  purpose  of  complying  with         Section 17.42(a)(3) of the DTPA.                      Purchaser agrees, on its own behalf and on behalf of its assigns and successors,         that all of its  rights  and remedies under the  DTPA are WAIVED AND RELEASED, including         specifically, without limitation, all rights and remedies resulting from or arising out of any and all         acts or practices of Seller in connection with this transaction, whether such acts or practices occur         before or after the execution of this Agreement; provided, however, notwithstanding anything to         the  contrary  herein,  in  accordance  with  Section 17.42  of  the  DTPA,  Purchaser  does  not  waive         Section 17.555 of the DTPA.         8.4    Effect and Survival of Disclaimers. Sellers have informed Purchaser that the compensation  to be paid to Sellers for the Property has been decreased to take into account that the Property is being sold  subject  to  the  provisions  of  this  Article VIII.  Sellers  and  Purchaser  agree  that  the  provisions  of  this  Article VIII shall survive Closing.                                     ARTICLE IX                                                                            MISCELLANEOUS         9.1    Broker. Sellers and Purchaser represent each to the other that each has had no dealings with  any broker, finder or other party concerning Purchaser’s purchase of the Property.  Sellers and Purchaser  each hereby agree to indemnify and hold the other harmless from all loss, cost, damage or expense (including  reasonable  attorney’s  fees)  incurred  by  the  other as a  result  of  any  claim  arising  out  of  the  acts  of  the  indemnifying party (or others on its behalf) for a commission, finder’s fee or similar compensation made by  any broker, finder or any party who claims to have dealt with such party. The foregoing representations and  warranties contained in this Section shall survive the Closing. The Texas Real Estate License Act requires  written notice to Purchaser that it should have an attorney examine an abstract of title to the property being  purchased or obtain a title insurance policy. Notice to that effect is, therefore, hereby given to Purchaser.         9.2    ERISA.  Purchaser  represents  that  Purchaser  is  not  an  employee  benefit  plan  or  a  governmental plan or a party in interest of either such a plan, and that the funds being used to acquire the  Property are not plan assets or subject to state laws regulating investments of and fiduciary obligations with      PURCHASE AGREEMENT                  Page 20   NG-EF2ZLUYJ 089930.000013 4840-7107-2412.7 Purchase and Sale Agreement - Accesso-Timberway and Park Place (Hartman)   4840-7107-2412 v.7.docx  

 

respect to a governmental plan. As used herein, the terms “employee benefit plan,” “party in interest,” “plan  assets” and “governmental plan” shall have the respective meanings assigned to such terms in ERISA, and  the term “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended, and the  regulations  promulgated  in  connection  therewith.  Upon  the  request  of  Seller,  Purchaser  shall  deliver  to  Sellers at Closing a certificate stating that the foregoing representations are true and correct and containing  an agreement by Purchaser to indemnify Seller against any inaccuracy in such representations. The foregoing  covenants shall survive Closing.         9.3    Assignment.  Purchaser  may  not  assign  its  rights  under  this  Agreement  without  first  obtaining  Sellers’ written  approval  which  may  be  given  or  withheld  in  Sellers’ sole  discretion,  except  Purchaser may, subject to the terms of this Section 9.3, assign this Agreement to an Affiliate without Sellers’  prior consent.  For the purposes of this paragraph, the term “Affiliate” means (a) an entity that directly or  indirectly controls, is controlled by or is under common control with the Purchaser or its stockholders or (b)  an entity at least a majority of whose economic interest is owned by Purchaser or its stockholders; and the  term "control" means the power to direct the management of such entity through voting rights, ownership or  contractual obligations.  Such entity shall be required to assume the obligations of Purchaser pursuant to this  Agreement, but in the event of such assignment, Purchaser shall not be released from liability under this  Agreement. In the event that Purchaser desires to assign its rights under this Agreement to an Affiliate,  Purchaser shall send written notice to Sellers at least three (3) business days prior to the effective date of  such assignment stating the name and, if applicable, the constituent persons or entities of the Affiliate. Such  assignment  shall  not  become  effective  until  such  Affiliate  executes  the  assignment  and  assumption  agreement, in form and substance reasonably acceptable to Sellers, whereby the Affiliate expressly assumes  each of the obligations of Purchaser under this Agreement, including specifically, without limitation, all  obligations  concerning  the  Earnest  Money.  Notwithstanding  anything  to  the  contrary  contained  herein,  Purchaser shall not have the right to assign this Agreement to any assignee which, in the reasonable judgment  of Seller, will cause the transaction contemplated hereby or any party thereto to violate the requirements of  ERISA or would result in the  delay or postponement of Closing.  In order to enable Sellers to make any  determination under this Section, including whether an assignee is an Affiliate, Purchaser shall cause to be  delivered to Sellers such information as is requested by Sellers with respect to a proposed assignee and the  constituent  persons  or  entities  of  any  proposed  assignee,  including  specifically,  without  limitation,  any  pension or profit sharing plans related thereto.         9.4    Confidentiality. The information  supplied  to  or  made  available  to  Purchaser  by  Sellers  pursuant  to  this Agreement  shall  not  be  released  or  disclosed  to  any  other  parties  unless  and  until  this  transaction has closed without the prior written consent of Sellers except as otherwise may be required by  the securities laws of the United States; provided, however, either party may disclose such information to its  respective attorney or to any prospective lender. In the event that this transaction is not closed for any reason,  then (a) Purchaser shall refrain, and shall cause its agents, representatives and accountants to refrain, from  disclosing  all  such  information  to  any  other  party,  (b) Purchaser  shall  promptly  return  to  Sellers  any  statements, documents, schedules, exhibits or other written information obtained from Sellers in connection  with this Agreement or the transaction contemplated herein, and (c) notwithstanding anything to the contrary  contained elsewhere in this Agreement, the  covenant set forth in the  foregoing clauses (a) and (b) shall  survive any termination of this Agreement until the first anniversary of the date of such termination. In no  event shall Purchaser issue any press releases prior to or in connection with the Closing regarding any of the  terms contained herein or the transactions contemplated herein without the consent of Sellers. In the event  of a breach or threatened breach by Purchaser or its agents or representatives of this Section 9.4, Sellers shall  be entitled to an injunction restraining Purchaser or its agents or representatives from disclosing, in whole  or  in  part,  such confidential  information.  Nothing  herein shall  be  construed  as prohibiting  Sellers  from  pursuing any other available remedy at law or in equity for such breach or threatened breach of this section.        PURCHASE AGREEMENT                  Page 21   NG-EF2ZLUYJ 089930.000013 4840-7107-2412.7 Purchase and Sale Agreement - Accesso-Timberway and Park Place (Hartman)   4840-7107-2412 v.7.docx  

 

      9.5    Notice. All notices required or permitted hereunder shall be in writing and shall be served  on the parties at the following address:          If to Seller:     BRI 1840 Park Place, LLC                           100 N. Federal Highway, Suite 400                           Hallandale Beach, Florida 33009                            Attn: Brian Rosen                           Facsimile: (954) 454-4749                           Email: brosen@accessopartners.com          With copy to:     BRI 1826 Delaware Timberway, LLC                           100 N. Federal Highway, Suite 400                           Hallandale Beach, Florida 33009                            Attn: Diana Sanchez                           Facsimile: (954) 454-4749                           Email: dsanchez@accessopartners.com          With a copy to:   Michael J. Pappert                           BakerHostetler LLP                           811 Main Street, Suite 1100                            Houston, Texas 77002                           Facsimile: (713) 751-1717                           Email: mpappert@bakerlaw.com          If to Purchaser:  Hartman vREIT XXI Operating Partnership L.P.                           c/o Hartman vREIT XXI, Inc.                           2909 Hillcroft, Ste. 420                                                   Houston, Texas  77057                                                      Attn: Patrick K. Windley                           Phone:  (713) 586-2611                           Facsimile:  (713) 973-8912                                                 Email: pwindley@hi-reit.com          With a copy to:   Mark T. Torok, General Counsel                           Hartman Income REIT, Inc.                           2909 Hillcroft, Ste. 420                                                   Houston, Texas  77057                                                      Phone:  (713) 586-2646                           Facsimile:  (713) 465-3132                           Email: mtorok@hi-reit.com             Any such notices shall be either (a) sent by certified mail, return receipt requested, in which case notice   shall be deemed delivered upon receipt, or (b) sent by a nationally recognized overnight courier, in which   case it shall be deemed delivered one business day after deposit with such courier, (c) by email or facsimile   transmission, in which case notice shall be deemed delivered upon receipt of confirmation of transmission   and provided a copy is also delivered via email transmission, or (d) delivered by hand delivery, in which   case it shall be deemed delivered upon receipt. The above addresses may be changed by written notice to   the other party; provided, however, that no notice of a change of address shall be effective until actual   receipt of such notice. Copies of notices are for informational purposes only, and a failure to give or receive      PURCHASE AGREEMENT                  Page 22   NG-EF2ZLUYJ 089930.000013 4840-7107-2412.7 Purchase and Sale Agreement - Accesso-Timberway and Park Place (Hartman)   4840-7107-2412 v.7.docx  

 

 copies of any notice shall not be deemed a failure to give notice. Purchaser and Seller hereby agree that   legal counsel designated above or any replacement counsel which may be designated by said party is hereby   authorized  to  give  notices  hereunder  on  behalf  of  its  respective  client(s)  and  any  such  notice  shall  be   effective as if sent directly by the party.         9.6    Time of Essence. Time is of the essence in this Agreement.         9.7    Counterparts. This Agreement may be executed in two or more counterparts, each of which  shall be deemed an original, but all of which together shall constitute one and the same instrument. Copies  of this executed Agreement transmitted electronically or by telecopy (facsimile) may be relied upon by the  parties hereto.         9.8    Captions. The captions in this Agreement are inserted for convenience of reference and in  no way define, describe or limit the scope or intent of this Agreement or any of the provisions hereof.         9.9    Binding Effect. This Agreement shall be binding upon and inure to the benefit of the parties  hereto and their respective legal representatives, successors and permitted assigns.         9.10   Entire Agreement; Modifications. This Agreement contains the entire agreement between  the parties relating to the transactions contemplated hereby and all prior or contemporaneous agreements,  understandings,  representations  or  statements,  oral  or  written,  are  superseded  hereby.  No  waiver,  modification amendment, discharge or change of this Agreement shall be valid unless the same is in writing  and signed by the party against which the enforcement of such modification, waiver, amendment discharge  or change is sought.         9.11   Partial Invalidity. Any provision of this Agreement which is unenforceable or invalid or the  inclusion of which would affect the validity, legality or enforcement of this Agreement shall be of no effect,  but all the remaining provisions of this Agreement shall remain in full force and effect.         9.12   Discharge of Obligations. Except as otherwise expressly provided herein, the acceptance  of the Deeds  by Purchaser at Closing shall be deemed  to be a full performance and discharge  of every  representation, warranty and covenant made by Sellers herein and every agreement and obligation on the  part of Sellers to be performed pursuant to the provisions hereof, and such representations, warranties and  covenants shall be deemed to merge into the documents delivered at Closing.         9.13   Limited Liability. Purchaser agrees that it does not have and will not have any claims or  causes  of  action  against  any  disclosed  or  undisclosed  officer,  director,  employee,  trustee,  shareholder,  partner, principal, parent, subsidiary or other affiliate of any Seller, or any officer, director, employee, trustee,  shareholder,  partner  or  principal  of  any  such  parent,  subsidiary  or  other  affiliate  (collectively, “Sellers’  Affiliates”), arising out of or in connection with this Agreement or the transactions contemplated hereby.  Purchaser agrees to look solely to Sellers and its assets for the satisfaction of any liability or obligation  arising under this Agreement or the transactions contemplated hereby, or for the performance of any of the  covenants, warranties or other agreements contained herein, and further agrees not to sue or otherwise seek  to enforce any personal obligation against any of Sellers’ Affiliates with respect to any matters arising out  of or in connection with this Agreement or the transactions contemplated hereby. The provisions of this  Section 9.13 shall survive the termination of this Agreement and the Closing.         9.14   No Third Party Rights. Nothing in this Agreement, express or implied, is intended to confer  upon any person, other than the parties hereto and their respective successors and assigns, any rights or  remedies under or by reason of this Agreement.        PURCHASE AGREEMENT                  Page 23   NG-EF2ZLUYJ 089930.000013 4840-7107-2412.7 Purchase and Sale Agreement - Accesso-Timberway and Park Place (Hartman)   4840-7107-2412 v.7.docx  

 

      9.15   Further  Assurances.  Both  Sellers  and  Purchaser  agree  that  it  will  without  further  consideration  execute  and  deliver  such  other  documents  and  take  such  other  action,  whether  prior  or  subsequent to Closing, as may be reasonably requested by the other party to consummate more effectively  the transactions contemplated hereby.         9.16   Construction. The parties acknowledge that the parties and their counsel have reviewed  and revised this Agreement and that the normal rule of construction to the effect that any ambiguities are to  be resolved against the drafting party shall not be employed in the interpretation of this Agreement or any  exhibits or amendments hereto.         9.17   Calculation of Time Periods. Unless otherwise specified, in computing any period of time  described in this Agreement, the day of the act or event after which the designated period of time begins to  run is not to be included and the last day of the period so computed is to be included, unless such last day is  a Saturday, Sunday or legal holiday under the laws of the State of Texas, in which event the period shall run  until the end of the next day which is neither a Saturday, Sunday or legal holiday. The final day of any such  period shall be deemed to end at 5 p.m., Houston, Texas time.         9.18   Applicable  Law.  THIS  AGREEMENT  IS  PERFORMABLE  IN  HARRIS  COUNTY,  TEXAS,  AND  SHALL  IN  ALL  RESPECTS  BE  GOVERNED  BY,  AND  CONSTRUED  IN  ACCORDANCE WITH, THE SUBSTANTIVE FEDERAL LAWS OF THE UNITED STATES AND THE  LAWS  OF  THE  STATE  OF  TEXAS.  PURCHASER  HEREBY  IRREVOCABLY  SUBMITS  TO  THE  JURISDICTION OF ANY STATE OR FEDERAL COURT SITTING IN HARRIS COUNTY, TEXAS, IN  ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT AND  HEREBY  IRREVOCABLY  AGREES  THAT  ALL  CLAIMS  IN  RESPECT  OF  SUCH  ACTION  OR  PROCEEDING SHALL BE HEARD AND DETERMINED IN A STATE OR FEDERAL COURT SITTING  IN HARRIS COUNTY, TEXAS. IF EITHER PARTY SHALL EMPLOY AN ATTORNEY TO ENFORCE  OR DEFINE THE RIGHTS OF SUCH PARTY HEREUNDER, THE PREVAILING PARTY SHALL BE  ENTITLED  TO  RECOVER  FROM  THE  NONPREVAILING  PARTY  ALL  OF  ITS  REASONABLE  EXPENSES,  INCLUDING  REASONABLE  ATTORNEYS’    FEES.  PURCHASER  AND  SELLERS  AGREE THAT THE  PROVISIONS  OF THIS  SECTION  SHALL  SURVIVE THE  CLOSING  OF THE  TRANSACTION CONTEMPLATED BY THIS AGREEMENT.         9.19   Municipal Utility District Notices. Purchaser agrees that if the Property or any portion  thereof is located in a municipal utility district, Purchaser will, within five (5) days after request by Sellers,  execute any and all notices which, in the opinion of counsel for Sellers, are required by law to be given to  Purchaser with respect to the Property.         9.20   Exhibits  and  Schedules.  The  following  schedules  or  exhibits  attached  hereto  (herein  sometimes being referred to as “Exhibit”) shall be deemed to be an integral part of this Agreement:                Exhibit A      Legal Description;               Exhibit B      Property Documents               Exhibit C      Special Warranty Deed               Exhibit D      Bill of Sale               Exhibit E      Assignment of Leases and Security Deposits               Exhibit F      Assignment and Assumption of Intangible Property and Other Rights               Exhibit G      Tenant Notice Letters               Exhibit H      FIRPTA Affidavit               Exhibit I      Agreement Regarding Disclaimers               Exhibit J      Form of Tenant Estoppel               Schedule 4.4 (f) Tenant Inducement Costs       PURCHASE AGREEMENT                  Page 24   NG-EF2ZLUYJ 089930.000013 4840-7107-2412.7 Purchase and Sale Agreement - Accesso-Timberway and Park Place (Hartman)   4840-7107-2412 v.7.docx  

 

      9.21   Tender of Offer. Upon execution of this Agreement by Purchaser and delivery of same to  Sellers, this Agreement shall constitute an offer which has been submitted by Purchaser to Sellers for Sellers’  approval. By executing this Agreement and submitting same to Sellers, Purchaser acknowledges and agrees  as  follows:  (a) this Agreement  may  be  approved  or  disapproved  by  Sellers  in  their  sole  and  unfettered  discretion,  with  Sellers  having  the  right  to  disapprove  this Agreement  for  any  reason  whatsoever,  and  (b) Sellers’ approval of this Agreement shall be evidenced only by Sellers’ execution of this Agreement and  delivery of a counterpart hereof executed by both Sellers and Purchaser to the Title Company. Purchaser  acknowledges that Purchaser has not, will not and cannot rely upon any other statement or action of Sellers  or their representatives as evidence of Sellers’ approval of this Agreement.         9.22   Like Kind Exchange. In the event that any Seller elects to sell the Property as part of a like  kind exchange pursuant to Section 1031 of the Internal Revenue Code, Purchaser agrees to cooperate with  such Seller in connection therewith and to execute and deliver all documents which reasonably may be  required  to  effectuate  such  exchange  as  a  qualified  transaction  pursuant  to  Section 1031  of  the  Code;  provided that: (a) the Closing shall not be delayed; (b) Purchaser incurs no additional cost or liability in  connection with the like-kind exchange; (c) such Seller pays all costs associated with the like-kind exchange;  and (d) Purchaser is not obligated to take title to any property other than the Property.                           [SIGNATURES FOLLOW ON NEXT PAGE]        PURCHASE AGREEMENT                  Page 25   NG-EF2ZLUYJ 089930.000013 4840-7107-2412.7 Purchase and Sale Agreement - Accesso-Timberway and Park Place (Hartman)   4840-7107-2412 v.7.docx  

 

Treasurer    Treasurer 

 

 

 

                   ACKNOWLEDGMENTS BY TITLE COMPANY         The  Title  Company  hereby  acknowledges  receipt  on  the  ___  day  of  September,  2019  of  a  counterpart of this Agreement executed by Seller and Purchaser.                                              STEWART TITLE GUARANTY COMPANY                                             By:                                            Name:                                            Title:          The Title Company hereby acknowledges receipt on the ___ day of September, 2019 of the Initial  Earnest Money from Purchaser in the amount of ____________________ Dollars ($_______________).                                           STEWART TITLE GUARANTY COMPANY                                           By:                                          Name:                                          Title:    PURCHASE AGREEMENT                  Page 27  NG-EF2ZLUYJ 089930.000013 4840-7107-2412.7 Purchase and Sale Agreement - Accesso-Timberway and Park Place (Hartman)  4840-7107-2412 v.7.docx  

 

                                                EXHIBIT A-1                                                                                      PARK PLACE PROPERTY LEGAL DESCRIPTION                                                    [See attached.]                                                   Exhibit A-1 – Page 1  NG-EF2ZLUYJ 089930.000013 4840-7107-2412.7 Purchase and Sale Agreement - Accesso-Timberway and Park Place (Hartman)  4840-7107-2412 v.7.docx  

 

Tract 1:                                                                                                                                                                    Exhibit A-1 – Page 2  NG-EF2ZLUYJ 089930.000013 4840-7107-2412.7 Purchase and Sale Agreement - Accesso-Timberway and Park Place (Hartman)  4840-7107-2412 v.7.docx  

 

Tract 2:                                                                                                                                                                                                              Exhibit A-1 – Page 3  NG-EF2ZLUYJ 089930.000013 4840-7107-2412.7 Purchase and Sale Agreement - Accesso-Timberway and Park Place (Hartman)  4840-7107-2412 v.7.docx  

 

Tract 3:                                                                                                                                                                          Exhibit A-1 – Page 4  NG-EF2ZLUYJ 089930.000013 4840-7107-2412.7 Purchase and Sale Agreement - Accesso-Timberway and Park Place (Hartman)  4840-7107-2412 v.7.docx  

 

                                                EXHIBIT A-2                                                                                      TIMBERWAY PROPERTY LEGAL DESCRIPTION                                                                                                              Exhibit A-2 – Page 1  NG-EF2ZLUYJ 089930.000013 4840-7107-2412.7 Purchase and Sale Agreement - Accesso-Timberway and Park Place (Hartman)  4840-7107-2412 v.7.docx  

 

                                  EXHIBIT B                                                                       PROPERTY DOCUMENTS         Except as provided below, each Seller shall deliver the following to Purchaser through a secure  website or make available at the Property to the extent in Seller’s possession (for purposes of this Exhibit,  the terms “Property” and “Seller” shall mean the Park Place Property with respect to the Park Place Seller  and the Timberway Property with respect to the Timberway Seller):   1.    Copies of all Leases, including any and all modifications or amendments thereto.  2.    A certified rent roll for the Property for the month in which this Agreement is executed, or        if not yet available, the most recently available month, in the form customarily prepared        for Seller by the current manager of the Property, and copies of monthly rent rolls for the        current year.  3.    Copies of all vendor and service contracts to which Seller is a party that are currently in        effect with respect to the Property, including, but not limited to, all agreements for the        provision of janitorial, maintenance, trash removal, landscaping and security services, to        the extent in Seller’s possession.  4.    Copies of all leasing commission agreements with respect to the Property to which Seller        is a party.  5.    Operating statements for the Property for the previous three (3) years and year-to-date (or        the period of Seller’s ownership of the Property or whatever is in Seller’s possession, if        either less) in the format customarily prepared for Seller by the current manager of the        Property  and,  to  the  extent  not  covered  in  the  Operating  Statements,  CAM        reconciliations/estimates  for  the  previous  three  (3)  years,  and  a  year-to-date  expense        general ledger in the format customarily prepared for Seller by the current manager of the        Property.  6.    An inventory of the Personal Property, if any, to be conveyed to Purchaser at Closing.  7.    Copies of the ad valorem and personal property tax statements covering the Property for        the current tax year (if available) and for the previous two (2) years (or the period of Seller’s        ownership of the Property, if less).  8.    All Governmental licenses and permits issued to Seller with respect to the Property to the        extent in Seller’s possession, including specifically, without limitation, building permits,        certificates of occupancy, and special or conditional use permits in Seller’s possession.  9.    Plans  and  specifications  for  the  Improvements,  to  the  extent  in  Seller’s  possession,        including working CAD files and current as-builts.  10.   Copies of all  guaranties and warranties  covering the Property, to  the  extent in  Seller’s        possession.  11.   Any current environmental reports prepared for Seller with respect to the Property which        are in Seller’s possession.                                     Exhibit B – Page 1  NG-EF2ZLUYJ 089930.000013 4840-7107-2412.7 Purchase and Sale Agreement - Accesso-Timberway and Park Place (Hartman)  4840-7107-2412 v.7.docx  

 

12.   A schedule of all tenant deposits (security or otherwise), which schedule may be a part of        the rent roll.  13.   Existing land title survey for the real property.  14.   A copy of Seller’s standard lease form in PDF format.  15.   A schedule of all insurance claims over the previous three (3) years that relate to the real        property.  16.   A historical occupancy report by year for the last two (2) years.  17.   A schedule of historical capital expenditures on the real property during the previous three        (3) calendar years, and year-to-date.  18.   An aging report detailing current payment delinquencies of any tenants.  19.   A description of all threatened and pending litigation that affects the real property.  20.   Billing information for tenant expense reimbursements (common area maintenance, taxes,        insurance, etc.) for the previous two (2) years and the current year.  21.   A general ledger for the previous two (2) years and year-to-date.  22.   Copies of all utility accounts which will be transferred to Purchaser at closing.  23.   A copy of the operating expense budget for the year following Closing.  25.   Documentation reflecting expenses incurred in connection repair and maintenance projects        performed in the prior two (2) years where the expenses exceeded $20,000.  26.   Copies  of  any  documents  regarding  any  roof,  foundation  and  pest  control  (including        termite) work performed on the Improvements and the bonds and for warranties of said        work, if any.  27.   Copies of all orders of any governmental agencies respecting any claimed violation of any        federal, state or local law, ordinance, rule, regulation, requirement or order affecting the        Property, including any notices received regarding the Property.  28.   List of Tenant Improvement allowances owed to tenants and expiration dates.  30.   Tenant lease files, if any, will be made available for inspection only at the Property.                                     Exhibit B – Page 2  NG-EF2ZLUYJ 089930.000013 4840-7107-2412.7 Purchase and Sale Agreement - Accesso-Timberway and Park Place (Hartman)  4840-7107-2412 v.7.docx  

 

                                  EXHIBIT C                                                                      SPECIAL WARRANTY DEED   THE STATE OF TEXAS                   §                                       §  KNOW  ALL   MEN  BY  THESE  PRESENTS:  COUNTY OF HARRIS                     §         THAT ____________________, LLC, a Delaware limited liability company (hereinafter referred  to as “Grantor”), for and in consideration of the sum of Ten Dollars ($10.00) and other good and valuable  consideration  to it  in  hand  paid  by  _____________,  a  ________________  (hereinafter  referred  to  as  “Grantee”), whose  mailing  address  is  2909  Hillcroft,  Ste.  420,  Houston, Texas  77057,  the  receipt  and  sufficiency of which consideration are hereby acknowledged, has GRANTED, BARGAINED, SOLD and  CONVEYED, and by these presents does hereby GRANT, BARGAIN, SELL and CONVEY, unto Grantee  all of the real property situated in Harris County, Texas, described on Exhibit A attached hereto and made  a part hereof for all purposes, together with all and singular the rights, benefits, privileges, easements,  tenements, hereditaments and appurtenances thereon or in anywise appertaining thereto, and together with  all improvements situated thereon and any right, title and interest of Grantor in and to adjacent streets,  alleys  and  rights-of-way  (said  land,  rights,  benefits,  privileges,  easements,  tenements,  hereditaments,  appurtenances, improvements and interests being hereinafter referred to collectively as the “Property”).         This conveyance is made subject to all presently recorded instruments which are valid and affect  the Property as well as shortages in area, encroachments, overlapping of improvements, and all matters  affecting the  Property which  are  visible or would be revealed  by a  survey thereof (such matters  being  referred to herein as the “Permitted Exceptions”).         TO HAVE AND TO HOLD the Property, subject to the Permitted Exceptions, as aforesaid, unto  Grantee, its successors and assigns, forever; and Grantor does hereby bind itself and its successors and  assigns,  to  WARRANT  AND  FOREVER  DEFEND  all  and  singular  the  Property  unto  Grantee,  its  successors and assigns, against every person whomsoever lawfully claiming or to claim the same, or any  part thereof, by, through or under Grantor, but not otherwise.         By acceptance of this Special Warranty Deed, Grantee assumes payment of all property taxes on  the Property for the year _____ and subsequent years.                                     Exhibit C – Page 1  NG-EF2ZLUYJ 089930.000013 4840-7107-2412.7 Purchase and Sale Agreement - Accesso-Timberway and Park Place (Hartman)  4840-7107-2412 v.7.docx  

 

      IN WITNESS WHEREOF, this Special Warranty Deed has been executed by Grantor to be effective  as of the ___ day of _______________ 20___.                                           GRANTOR:                                           _____________, LLC,                                          a Delaware limited liability company                                           By:                                                                             Name:                                                                           Title:                                      THE STATE OF _________               §                                       §  COUNTY OF ___________                §         This instrument was acknowledged before me on the ___ day of _______________ 20___, by  ____________________, ____________________ of ______________, LLC, a Delaware limited liability  company, on behalf of said company.                                                                                                                          Notary Public                                        Exhibit C – Page 2  NG-EF2ZLUYJ 089930.000013 4840-7107-2412.7 Purchase and Sale Agreement - Accesso-Timberway and Park Place (Hartman)  4840-7107-2412 v.7.docx  

 

                                  EXHIBIT D                                                                            BILL OF SALE         Seller, _______________, LLC, a Delaware limited liability company (“Seller”), in consideration  of Ten Dollars ($10.00), receipt of which is hereby acknowledged, does hereby sell, assign, transfer and set  over  to  _______________,  a  _________________ (“Purchaser”), the  following  described  personal  property, to-wit:         All of the furniture, fixtures, equipment, machines, apparatus, supplies and personal property, of        every nature and description, and all replacements thereof now owned by Seller and located in or        on  the  real  estate  described  on Exhibit A attached  hereto  and  made  a  part  hereof,  excepting        therefrom any furniture, furnishings, fixtures, business equipment or articles of personal property        belonging to tenants occupying the improvements situated on said real estate, or otherwise excluded        pursuant to Tenant Estoppel Certificates executed by such tenants in connection with the sale and        purchase  of  the  real  property  and  improvements  thereon  described  in  that  certain  Purchase        Agreement between Seller and Purchaser dated _______________, 20___.         SELLER MAKES NO WARRANTY OF MERCHANTABILITY, QUALITY OR FITNESS FOR  A PARTICULAR PURPOSE IN RESPECT OF THE FOREGOING PROPERTY, AND THE SAME IS  SOLD IN “AS IS, WHERE IS” CONDITION, WITH ALL FAULTS. BY EXECUTION OF THIS BILL  OF  SALE,  PURCHASER  AFFIRMS  THAT  IT  HAS  NOT  RELIED  ON  SELLER’S  SKILL  OR  JUDGMENT TO SELECT OR FURNISH THE FOREGOING PROPERTY FOR ANY PARTICULAR  PURPOSE,  THAT  SELLER  MAKES  NO  WARRANTY  OF  MERCHANTABILITY,  QUALITY,  OR  FITNESS FOR ANY PARTICULAR PURPOSE, AND THAT THE FOREGOING PROPERTY IS BEING  SOLD TO PURCHASER WITHOUT REPRESENTATION OR WARRANTY OF ANY KIND, EXPRESS,  IMPLIED OR STATUTORY.         IN WITNESS WHEREOF, Seller has caused this Bill of Sale to be signed and sealed in its name  by its officers thereunto duly authorized this ___ day of _______________ 20___.                                           SELLER:                                           ______________, LLC,                                          a Delaware limited liability company                                           By:                                                                             Name:                                                                           Title:                                                                         Exhibit D – Page 1  NG-EF2ZLUYJ 089930.000013 4840-7107-2412.7 Purchase and Sale Agreement - Accesso-Timberway and Park Place (Hartman)  4840-7107-2412 v.7.docx  

 

THE STATE OF ___________             §                                       §  COUNTY OF _____________              §         This instrument was acknowledged before me on the ___ day of _______________ 20___, by  ____________________, ____________________ of ______________, LLC, a Delaware limited liability  company, on behalf of said company.                                                                                                                          Notary Public                                        Exhibit D – Page 2  NG-EF2ZLUYJ 089930.000013 4840-7107-2412.7 Purchase and Sale Agreement - Accesso-Timberway and Park Place (Hartman)  4840-7107-2412 v.7.docx  

 

                                  EXHIBIT E                                                           ASSIGNMENT OF LEASES AND SECURITY DEPOSITS   THE STATE OF TEXAS                   §                                       §  KNOW  ALL  MEN  BY  THESE  PRESENTS:  COUNTY OF HARRIS                     §         ______________, LLC, a Delaware limited liability company (“Assignor”), in consideration of the  sum of Ten Dollars ($10.00) in hand paid and other good and valuable consideration, the receipt of which  is  hereby  acknowledged,  hereby  assigns,  transfers,  sets over  and  conveys  to  _______________,  a  _____________ (“Assignee”), all of Assignor’s right, title and interest in and to all leases, including any  and all security deposits made by tenants pursuant to said leases, in effect at the real property in Bexar  County, Texas, more particularly described on Exhibit A attached hereto (“Existing Leases”); provided,  however, that Assignor reserves and retains for itself any and all claims and causes of action that have  accrued to Assignor under Existing Leases prior to the effective date of this Assignment of Leases and  Security Deposits.         IN WITNESS WHEREOF, Assignor has executed this Assignment to be effective as of the ___ day  of _______________ 20___.                                           ASSIGNOR:                                           ________________, LLC,                                          a Delaware limited liability company                                           By:                                                                             Name:                                                                           Title:                                      THE STATE OF _________               §                                       §  COUNTY OF ___________                §         This instrument was acknowledged before me on the ___ day of _______________ 20___, by  ____________________,  ____________________  of  _________________,  LLC,  a  Delaware  limited  liability company, on behalf of said company.                                                                                                                          Notary Public                                      Exhibit E – Page 1  NG-EF2ZLUYJ 089930.000013 4840-7107-2412.7 Purchase and Sale Agreement - Accesso-Timberway and Park Place (Hartman)  4840-7107-2412 v.7.docx  

 

                                ACCEPTANCE         Assignee hereby accepts the foregoing Assignment of Leases and Security Deposits and agrees to  assume, fulfill, perform and discharge all the various commitments, obligations and liabilities of Assignor  under and by virtue of the Existing Leases hereby assigned, which arise on or after the effective date hereof,  including the return of security deposits, and does hereby agree to defend, indemnify and hold harmless  Assignor from any liability, damages, causes of action, expenses and attorneys’ fees incurred by Assignor  by reason of the failure of Assignee from and after the effective date hereof to fulfill, perform and discharge  all of the various commitments, obligations and liabilities of Assignor under and by virtue of the Existing  Leases assigned hereunder, including the return of security deposits, which arise on or after the effective  date hereof.         IN WITNESS WHEREOF, this Acceptance has been executed to be effective as of the ___ day of  _______________ 20___.                                           ASSIGNEE:                                           _____________________,                                          a ______________                                                                                    By:                                                                             Name:                                                                           Title:                                      THE STATE OF ____________________    §                                       §  COUNTY OF ____________________       §         This instrument was acknowledged before me on the ___ day of _______________ 20___, by  ____________________, ____________________ of _________________, a ___________________, on  behalf of said _______________.                                                                                                                          Notary Public                                                                                Exhibit E – Page 2  NG-EF2ZLUYJ 089930.000013 4840-7107-2412.7 Purchase and Sale Agreement - Accesso-Timberway and Park Place (Hartman)  4840-7107-2412 v.7.docx  

 

                                  EXHIBIT F                                                       ASSIGNMENT AND ASSUMPTION OF INTANGIBLE PROPERTY                                AND OTHER RIGHTS   THE STATE OF TEXAS                   §                                       §  KNOW  ALL  MEN  BY  THESE  PRESENTS:  COUNTY OF HARRIS                     §         FOR  VALUE  RECEIVED,  ______________,  LLC,  a  Delaware  limited  liability  company  (“Assignor”), hereby  conveys,  assigns,  transfers,  and  sets  over  unto  _________________,  a  _______________ (“Assignee”), all the right, title and interest of Assignor in and to any and all intangible  property owned by Assignor and used in connection with the real estate described on Exhibit A attached  hereto and made a part hereof, and the buildings and improvements located thereon (“Property”), including  without limitation, the right, if any, to use the name “____________________ Office Building”, all plans  and  specifications  in  the  possession  of Assignor  which  were  prepared  in  connection  with  any  of  the  Property, all assignable  licenses, permits and  warranties now in effect with respect to the  Property, all  assignable written contracts and commitments, if any, described on Exhibit B attached hereto and made a  part hereof, all assignable equipment leases and all rights of Assignor thereunder relating to equipment  located on the Property which will survive the closing hereunder, but excluding cash on hand and in bank  and  escrow  accounts,  and further  excluding any  furniture,  furnishings,  fixtures,  business  equipment  or  articles of personal property belonging to tenants occupying the Property or otherwise excluded pursuant  to  Tenant  Estoppel  Certificates  executed  by  such  tenants  in  accordance  with  that  certain  Purchase  Agreement between Assignor, as seller, and Assignee, as purchaser, dated _______________, 20___, for  the sale and purchase of the Property.         This Assignment shall be binding upon and shall inure to the benefit of Assignor, Assignee and  their respective successors and assigns.         IN WITNESS WHEREOF, Assignor has executed this Assignment and Assumption of Intangible  Property and Other Rights to be effective as of the ___ day of _______________ 20___.                                           ASSIGNOR:                                           ________________, LLC,                                          a Delaware limited liability company                                           By:                                                                             Name:                                                                           Title:                                                                          Exhibit F – Page 1  NG-EF2ZLUYJ 089930.000013 4840-7107-2412.7 Purchase and Sale Agreement - Accesso-Timberway and Park Place (Hartman)  4840-7107-2412 v.7.docx  

 

                                ACCEPTANCE         Assignee hereby accepts the  foregoing Assignment and Assumption of Intangible  Property and  Other Rights and agrees to become responsible for and assume, fulfill, perform, discharge and observe all  obligations, covenants, conditions and provisions accruing or arising or required from and after the date  hereof with respect to the above-described property, and does hereby agree to defend, indemnify and hold  harmless Assignor from any liability, damages, causes of action, expenses and attorneys’ fees incurred by  Assignor by reason of the failure of the undersigned from and after the date hereof to fulfill, perform,  discharge and observe all of the various obligations, covenants, conditions and provisions with respect to  the above-described property.         IN WITNESS WHEREOF, this Acceptance has been executed by Assignee to be effective as of the  ___ day of _______________ 20___.                                           ASSIGNEE:                                           ________________,                                          a _______________                                                                                    By:                                                                             Name:                                                                           Title:                                                                          Exhibit F – Page 2  NG-EF2ZLUYJ 089930.000013 4840-7107-2412.7 Purchase and Sale Agreement - Accesso-Timberway and Park Place (Hartman)  4840-7107-2412 v.7.docx  

 

                                  EXHIBIT G                                                       NOTICE OF PURCHASE AND LEASE ASSIGNMENT TO TENANTS                                _______________, 20___   [Name and Address of Tenant]         Re: Sale of ____________________   Gentlemen:         Please  be  advised  that  __________________,  a  __________________ (“Purchaser”) has  purchased  the  captioned  property,  in  which  you  occupy space  as  a  tenant  pursuant  to  a  lease  dated  _______________, 20___ (the “Lease”), from __________________, LLC, a Delaware limited liability  company (“BRI _____”), the previous owner thereof. In connection with such purchase, ________ has  assigned its interest as landlord in the Lease to Purchaser and has transferred your security deposit in the  amount of $_______________ (the “Security Deposit”) to Purchaser. Purchaser specifically acknowledges  the receipt of and responsibility for the Security Deposit, the intent of Purchaser and BRI ______ being to  relieve BRI ______ of any liability for the return of the Security Deposit.         All rental and other payments that become due subsequent to the date hereof should be payable to  ____________________ and should be addressed as follows:                           ____________________                          ____________________                          ____________________         In addition, all notices from you to the landlord concerning any matter relating to your tenancy  should be sent to ____________________ at the address above.                                          Very truly yours,                                          _________________,                                         a ___________________                                                                                  By:                                                                           Name:                                                                         Title:                                                                         ________________, LLC,                                         a Delaware limited liability company                                          By:                                                                           Name:                                                                         Title:                                                                   Exhibit G – Page 1  NG-EF2ZLUYJ 089930.000013 4840-7107-2412.7 Purchase and Sale Agreement - Accesso-Timberway and Park Place (Hartman)  4840-7107-2412 v.7.docx  

 

                                  EXHIBIT H                                                                          FIRPTA AFFIDAVIT   THE STATE OF _________               §                                       §  COUNTY OF ___________                §         Section 1445 of the Internal Revenue Code provides that a transferee of a U.S. real property interest  must withhold tax if the transferor is a foreign person. To inform _________________, a ______________  (“Transferee”), that withholding of tax is not required upon the disposition of a U.S. real property interest  by  _________________,  LLC,  a  Delaware  limited  liability  company (“Transferor”), the  undersigned  hereby certifies as follows:         1.    Transferor is not a foreign corporation, foreign partnership, foreign trust or foreign estate  (as those terms are defined in the Internal Revenue Code and Income Tax Regulations);         2.    Transferor’s U.S. employer identification number is: #__________;         3.    Transferor’s office address is _________________________.         Transferor understands that this certification may be disclosed to the Internal Revenue Service by  the Transferee and that any false statement contained herein could be punished by fine, imprisonment, or  both.         Under penalties of perjury, the undersigned, in the capacity set forth below, hereby declares that he  has examined this certification and to the best of his knowledge and belief it is true, correct, and complete,  and the undersigned further declares that he has authority to sign this document in such capacity.         EXECUTED to be effective as of the ___ day of _______________ 20___.                                           TRANSFEROR:                                           _________________, LLC,                                          a Delaware limited liability company                                           By:                                                                             Name:                                                                           Title:                                                                         Exhibit H – Page 1  NG-EF2ZLUYJ 089930.000013 4840-7107-2412.7 Purchase and Sale Agreement - Accesso-Timberway and Park Place (Hartman)  4840-7107-2412 v.7.docx  

 

        SWORN TO AND SUBSCRIBED BEFORE ME this ___ day of _______________ 20___.                                                                                                                                                                           Notary Public                                                       Exhibit H – Page 2  NG-EF2ZLUYJ 089930.000013 4840-7107-2412.7 Purchase and Sale Agreement - Accesso-Timberway and Park Place (Hartman)  4840-7107-2412 v.7.docx  

 

                                  EXHIBIT I                                                                AGREEMENT REGARDING DISCLAIMERS         This Agreement Regarding Disclaimers (this “Agreement”) is made to be effective as of the ___  day of _______________ 20___, by __________________, a ___________________ (“Purchaser”), for  the benefit of ____________________, LLC, a Delaware limited liability company (“Seller”).                                     RECITALS         A.    Seller and Purchaser executed that certain Purchase Agreement (herein so called) dated to  be  effective as of the ___ day of _______________ 20___, regarding the sale and  purchase of certain  property more specifically described therein (the “Property”).         B.    The Purchase Agreement requires that at Closing (as defined in the Purchase Agreement)  Purchaser and its counsel shall execute this Agreement;         NOW THEREFORE, Purchaser does hereby confirm and agree as follows:         1.    No Reliance. Purchaser acknowledges and agrees that Purchaser has had ample opportunity  to review documents concerning the Property and to conduct physical inspections of the Property, including  specifically,  without  limitation,  inspections  regarding  the  environmental  condition  of  the  Property,  the  structural condition of the Property, and the compliance of the Property with the Americans with Disabilities  Act of 1990, 42 U.S.C. §12101 et seq. Purchaser hereby represents, warrants and agrees that (a) Purchaser  has examined  the Property and  is  familiar with the physical condition thereof and has conducted such  investigations  of  the  Property  (including  without  limitation  the  environmental  condition  thereof)  as  Purchaser has deemed necessary 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, (b) except as expressly set forth in Section 5.1 of the Purchase Agreement,  neither Seller nor Broker (as defined in the Purchase Agreement), nor any affiliate, agent, officer, employee  or  representative  of  any  of  the  foregoing  has  made  any  verbal  or  written  representations,  warranties,  promises  or  guarantees  whatsoever  to  Purchaser,  express  or  implied,  and  in  particular,  that  no  such  representations, warranties, guarantees or promises have been made with respect to the physical condition,  operation, or any other matter or thing affecting or related to the Property or the offering or sale of the  Property, and (c) Purchaser has not relied upon any representations, warranties, guarantees or promises or  upon any statements made or any information provided concerning the Property provided or made by Seller  or Broker, or their respective agents and representatives, and Purchaser has elected to purchase the Property  after having made and relied solely on its own independent investigation, inspection, analysis, appraisal  and  evaluation  of  the  Property  and  the  facts  and  circumstances  related  thereto.  Without  limiting  the  generality of the foregoing, Purchaser acknowledges and agrees that neither Seller nor Broker has any  obligation to disclose to Purchaser, and shall have no liability for its failure to disclose to Purchaser, any  information known to it relating to the Property. Purchaser acknowledges and agrees that all materials, data  and information delivered to Purchaser by or through Seller or Broker in connection with the transaction  contemplated herein have been provided to Purchaser as a convenience only and that any reliance on or use  of such materials, data or information by Purchaser shall be at the sole risk of Purchaser.         2.    Disclaimers. PURCHASER ACKNOWLEDGES AND AGREES THAT THE PROPERTY  HAS BEEN SOLD AND CONVEYED TO PURCHASER AND PURCHASER HAS ACCEPTED THE  PROPERTY “AS IS, WHERE IS, WITH ALL FAULTS.” EXCEPT FOR THE REPRESENTATIONS AND  WARRANTIES  SET  FORTH  IN  SECTION 5.1  OF  THE  PURCHASE  AGREEMENT  AND  THE                                     Exhibit I – Page 1  NG-EF2ZLUYJ 089930.000013 4840-7107-2412.7 Purchase and Sale Agreement - Accesso-Timberway and Park Place (Hartman)  4840-7107-2412 v.7.docx  

 

LIMITED WARRANTY OF TITLE EXPRESSLY SET FORTH IN THE DEEDS FROM SELLERS TO  PURCHASER, SELLER HEREBY EXPRESSLY DISCLAIMS ANY AND ALL REPRESENTATIONS  AND WARRANTIES OF ANY KIND OR CHARACTER, EXPRESS OR IMPLIED, WITH RESPECT  TO THE PROPERTY. WITHOUT LIMITING THE GENERALITY OF THE PRECEDING SENTENCE  OR  ANY  OTHER  DISCLAIMER  SET  FORTH  HEREIN,  SELLER  AND  PURCHASER  HEREBY  AGREE THAT SELLER HAS NOT MADE AND IS NOT MAKING ANY REPRESENTATIONS OR  WARRANTIES,  EXPRESS  OR  IMPLIED,  WRITTEN  OR  ORAL,  AS  TO  (A) THE  NATURE  OR  CONDITION,  PHYSICAL  OR  OTHERWISE,  OF  THE  PROPERTY  OR ANY ASPECT  THEREOF,  INCLUDING,  WITHOUT  LIMITATION, ANY  WARRANTIES  OF  HABITABILITY, SUITABILITY,  MERCHANTABILITY, OR FITNESS FOR A PARTICULAR USE OR PURPOSE, (B) THE NATURE  OR  QUALITY  OF  CONSTRUCTION,  STRUCTURAL  DESIGN  OR  ENGINEERING  OF  THE  IMPROVEMENTS  OR  THE  STATE  OF  REPAIR  OR  LACK  OF  REPAIR  OF  ANY  OF  THE  IMPROVEMENTS,  (C) THE  QUALITY  OF THE  LABOR  OR  MATERIALS  INCLUDED  IN  THE  IMPROVEMENTS,  (D) THE  SOIL  CONDITIONS,  DRAINAGE  CONDITIONS, TOPOGRAPHICAL  FEATURES, ACCESS TO  PUBLIC  RIGHTS-OF-WAY, AVAILABILITY  OF  UTILITIES  OR  OTHER  CONDITIONS  OR  CIRCUMSTANCES  WHICH AFFECT  OR  MAY AFFECT THE  PROPERTY  OR  ANY USE TO WHICH PURCHASER MAY PUT THE PROPERTY, (E) ANY CONDITIONS AT OR  WHICH AFFECT  OR  MAY AFFECT  THE  PROPERTY  WITH  RESPECT  TO ANY  PARTICULAR  PURPOSE,  USE,  DEVELOPMENT  POTENTIAL  OR  OTHERWISE,  (F) THE AREA,  SIZE,  SHAPE,  CONFIGURATION,  LOCATION,  CAPACITY,  QUANTITY,  QUALITY,  CASH  FLOW,  EXPENSES,  VALUE, MAKE, MODEL, COMPOSITION, AUTHENTICITY OR AMOUNT OF THE PROPERTY OR  ANY PART THEREOF, (G) EXCEPT FOR THE LIMITED WARRANTY OF TITLE EXPRESSLY SET  FORTH  IN  THE  DEED,  THE  NATURE  OR  EXTENT  OF  TITLE  TO  THE  PROPERTY,  OR ANY  EASEMENT,  RIGHT-OF-WAY,  LEASE,  POSSESSION,  LIEN,  ENCUMBRANCE,  LICENSE,  RESERVATION, CONTRACT, CONDITION OR OTHERWISE THAT MAY AFFECT TITLE TO THE  PROPERTY, (H) ANY ENVIRONMENTAL, GEOLOGICAL, METEOROLOGICAL, STRUCTURAL,  OR OTHER CONDITION OR   HAZARD OR THE ABSENCE THEREOF HERETOFORE, NOW OR  HEREAFTER AFFECTING IN ANY MANNER THE PROPERTY, INCLUDING BUT NOT LIMITED  TO, THE ABSENCE OF ASBESTOS OR ANY ENVIRONMENTALLY HAZARDOUS SUBSTANCE  ON, IN, UNDER OR ADJACENT TO THE PROPERTY, (I) THE COMPLIANCE OF THE PROPERTY  OR  THE  OPERATION  OR  USE  OF  THE  PROPERTY  WITH  ANY  APPLICABLE  RESTRICTIVE  COVENANTS,  OR  WITH  ANY  LAWS,  ORDINANCES  OR  REGULATIONS  OF  ANY  GOVERNMENTAL BODY (INCLUDING SPECIFICALLY, WITHOUT LIMITATION, ANY ZONING  LAWS OR REGULATIONS, ANY BUILDING CODES, ANY ENVIRONMENTAL LAWS, AND THE  AMERICANS  WITH  DISABILITIES ACT  OF  1990,  42  U.S.C.  12101 ET  SEQ.  UPON  CLOSING,  PURCHASER  SHALL ASSUME THE  RISK THAT ADVERSE  MATTERS,  INCLUDING  BUT  NOT  LIMITED  TO,  VIOLATIONS  OF  ANY  APPLICABLE  LAWS,  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  FROM  AND  AGAINST ANY AND ALL CLAIMS, DEMANDS, CAUSES OF ACTION (INCLUDING CAUSES OF  ACTION  IN TORT),  LOSSES,  DAMAGES,  LIABILITIES,  COSTS AND  EXPENSES  (INCLUDING  ATTORNEYS’ FEES AND COURT COSTS) OF ANY AND EVERY KIND OR CHARACTER, KNOWN  OR  UNKNOWN,  WHICH  PURCHASER  MIGHT  HAVE  ASSERTED  OR  ALLEGED  AGAINST  SELLER  AT  ANY  TIME  BY  REASON  OF  OR  ARISING  OUT  OF  ANY  VIOLATIONS  OF  ANY  APPLICABLE LAWS (INCLUDING ANY ENVIRONMENTAL LAWS), CONSTRUCTION DEFECTS,  PHYSICAL  CONDITIONS,  AND  ANY  AND  ALL  OTHER  ACTS,  OMISSIONS,  EVENTS,  CIRCUMSTANCES  OR MATTERS  REGARDING THE  PROPERTY. PURCHASER AGREES THAT  SHOULD ANY WORK  BE  REQUIRED TO  PUT THE  PROPERTY  IN  COMPLIANCE WITH ANY  APPLICABLE  LAWS,  OR  SHOULD  ANY  CLEANUP,  REMEDIATION  OR  REMOVAL  OF  HAZARDOUS SUBSTANCES OR OTHER ENVIRONMENTAL CONDITIONS ON THE PROPERTY                                     Exhibit I – Page 2  NG-EF2ZLUYJ 089930.000013 4840-7107-2412.7 Purchase and Sale Agreement - Accesso-Timberway and Park Place (Hartman)  4840-7107-2412 v.7.docx  

 

BE  REQUIRED  AFTER  THE  DATE  OF  CLOSING,  SUCH  WORK,  CLEAN-UP,  REMOVAL  OR  REMEDIATION  SHALL  BE THE  RESPONSIBILITY  OF AND  SHALL  BE  PERFORMED AT THE  SOLE COST AND EXPENSE OF PURCHASER.         3.    DTPA Waiver. Purchaser acknowledges and agrees, on its own behalf and on behalf of its  assigns and successors, that the Texas Deceptive Trade Practices — Consumer Protection Act, Subchapter E  of  Chapter 17  of  the  Texas  Business  and  Commerce  Code  (the “DTPA”), is  not  applicable  to  this  transaction. Accordingly, Purchaser’s rights and remedies with respect to this transaction, and with respect  to all acts or practices of the other, past, present or future, in connection with this transaction, shall be  governed by legal principles other than the DTPA. In furtherance of the foregoing, Seller and Purchaser  agree as follows:               (a)   Purchaser  represents  that it  is  a  business  consumer  and  that  it  is  acquiring  the  Property for commercial or business use. Purchaser further represents that it has knowledge and experience  in financial and business matters that enable it to evaluate the merits and risks of the business transaction  that is the subject of the Purchase Agreement (including the acquisition of the Property). Purchaser also  represents that it is not in a significantly disparate bargaining position in relation to Seller.               (b)   Purchaser represents that it has been represented by legal counsel in seeking or  acquiring the Property and that the transaction contemplated by the Purchase Agreement does not involve  the  purchase  or  lease  of  a  family  residence  occupied  or  to  be occupied  as  the  residence  of  Purchaser.  Concurrently with the execution of this Agreement, Purchaser shall cause its legal counsel to sign a copy  of this Agreement in the space provided below for the purpose of complying with Section 17.42(a)(3) of  the DTPA.               (c)   Purchaser agrees, on its own behalf and on behalf of its assigns and successors,  that all of its rights and remedies under the DTPA are WAIVED AND RELEASED, including specifically,  without limitation, all rights and remedies resulting from or arising out of any and all acts or practices of  Seller in connection with the business transaction that is the subject of the Purchase Agreement (including  the acquisition of the Property) whether such acts or practices occur before or after the execution of this  Agreement;  provided,  however,  notwithstanding  anything  to  the  contrary  herein,  in  accordance  with  Section 17.42 of the DTPA, Purchaser does not waive Section 17.555 of the DTPA.         4.    Survival of Disclaimers. Seller and Purchaser agree that the provisions of this Agreement  shall survive Closing.                                           PURCHASER:                                           _________________,                                          a _________________________                                                                                    By:                                                                             Name:                                                                           Title:                                                                      Exhibit I – Page 3  NG-EF2ZLUYJ 089930.000013 4840-7107-2412.7 Purchase and Sale Agreement - Accesso-Timberway and Park Place (Hartman)  4840-7107-2412 v.7.docx  

 

                                  EXHIBIT J                                                                   TENANT ESTOPPEL CERTIFICATE   To:   Re:   Property Address: ____________________        Lease Date: _______________, 20___        Between ____________________, Landlord        and ____________________, Tenant        Square Footage Leased: __________        Suite No. __________        Floor __________         The  undersigned  Tenant  under  the  above-referenced  lease (“Lease”) certifies  to        _________________, LLC, a Delaware limited liability company, and _____________________,        a ________________ the following:               (1)   The above-described lease has not been canceled, modified, assigned, extended or  amended except at follows: ____________________.               (2)   Rent has been paid to the first day of the current month and all additional rent has  been paid and collected in a current manner. There is no prepaid rent, except $_______________ and the  amount of security deposit is $_______________.               (3)   We  took  possession  of  the  leased  premises  on  _______________,  20___,  and  commenced  to  pay  rent  on  _______________,  20___.  Rent  is  currently  payable  in  the  amount  of  $_______________ monthly.               (4)   The Lease terminates on _______________, 20___, and we have the following  renewal option(s): ____________________.               (5)   All work to be performed for us under the Lease has been performed as required  and has been accepted by us, except ____________________.               (6)   The Lease is: (a) in full force and effect; (b) free from default; and (c) we have no  claims against the Landlord or offsets against rent.               (7)   The  undersigned  has  received  no  notice  of  prior  sale,  transfer  or  assignment,  hypothecation or pledge of the said Lease or of the rents received therein, except ____________________.               (8)   The undersigned has not assigned or sublet the said Lease nor does the undersigned  hold the premises under assignment or sublease, except ____________________.               (9)   The base year for operating expenses and real estate taxes, as defined in the said  lease is __________.                                     Exhibit J – Page 1  NG-EF2ZLUYJ 089930.000013 4840-7107-2412.7 Purchase and Sale Agreement - Accesso-Timberway and Park Place (Hartman)  4840-7107-2412 v.7.docx  

 

            (10)  The undersigned has no other interest in any other part of the building of which  the premises form a part or to any personal property appurtenant thereto or used in connection therewith  except ____________________.               (11)  The undersigned has no right or option pursuant to the said lease or otherwise to  purchase all or any part of the leased premises or the building of which the leased premises are a part.               (12)  There are no other agreements written or oral between the undersigned and the  Landlord with respect to the Lease and/or the leased premises and building.               (13)  The statements contained herein may be relied upon by the Landlord under the said  Lease and by any prospective purchaser of the fee of the premises.         If we are a corporation, the undersigned is a duly appointed officer of the corporation signing this  certificate and is the incumbent in the office indicated under his name.         In any event, the undersigned individual is duly authorized to execute this certificate.         Dated this ___ day of _______________ 20___.                                           TENANT:                                           ____________________,                                          a __________ __________                                           By:                                                                             Name:                                                                           Title:                                                                                                                       Exhibit J – Page 2  NG-EF2ZLUYJ 089930.000013 4840-7107-2412.7 Purchase and Sale Agreement - Accesso-Timberway and Park Place (Hartman)  4840-7107-2412 v.7.docx  

 

                                                                         SCHEDULE 4.4(F)                                                                                                                                                        TENANT INDUCEMENT COSTS       PARK PLACE I & II - SELLER CREDITS BUYER      Property                    Tenant                               Category                     Outstanding Obligation                               Note 1840-1           Bryan Park, an individual             Leasing Commission                                                $305 1840-1           Joseph Wardell, Jr., a individualTenant Improvement                                                  $11,372 1840-1           Maria Segura Insurance Agency, LLCTenant Improvement                                                   $6,974 1840-1           Maria Segura Insurance Agency, LLCLeasing Commission                                                    $888 1840-1           Primary Residential Mortgage, IncLeasing Commission                                                     $508                                                                               TOTAL 1840-1                            $20,048      Property                    Tenant                               Category                     Outstanding Obligation                               Note 1840-2           Hargrove and Associates, Inc.         Tenant Improvement                                            $402,673 Have option to pay towards rent versus a TI disbursement                                                                               TOTAL 1840-2                          $402,673                                                         TOTAL (PARK PLACE I&II)                                  $422,721   TIMBERWAY II - BUYER CREDIT TO SELLER      Property                    Tenant                               Category                     Outstanding Obligation                               Note 1826             Josen Premium Global Digital          Leasing Commission                                               $8,153                                                         TOTAL (TIMBERWAY II)                                         $8,153                                                                                                                                                                                                                                                                   Schedule 4.4(f) – Page 1  NG-EF2ZLUYJ 089930.000013 4840-7107-2412.7 Purchase and Sale Agreement - Accesso-Timberway and Park Place (Hartman) 4840-7107-2412  v.7.docxExhibit 10.4

 

Real Estate Lease Agreement

 

Lessor (Party A): Zhang Zhongzhe

 

House information coding card: 4403030030110100003

 

Correspondence address: Suite 2008, Changhong Building, Sungang Road, Luohu District

 

Postal code: 518008  Contact telephone: 82116121

 

No. of organization code certificate or valid identification: H0727770601

 

Authorized agent: Zhang Miaoxiang

 

Correspondence address: Suite 2008, Changhong Building, Sungang Road, Luohu District

 

Postal code: 518008  Contact telephone: 82116121

 

No. of organization code certificate or valid identification no.: 440527197308191028

 

Lessee (Party B):  Shenzhen Pengcheng Hospital Co., Ltd.

 

Correspondence address: B/F, Changhong Building, 3013 Sungang Road East, Luohu District

 

Postal code: 518001  Contact telephone: 25933390

 

No. of organization code certificate or valid identification: 91440300745164966Y

 

Authorized agent: Fan Shengqi

 

Correspondence address: B/F, Changhong Building, 3013 Sungang Road East, Luohu District

 

Postal code: 518001  Contact telephone: 25933390

 

No. of organization code certificate or valid identification no.: 320721197902153636

 

Party A and Party B hereby enter into this contract by mutual agreement pursuant to the “Contract Law of the People’s Republic of China”, the “Law of the People’s Republic of China on Urban Real Estate Administration”, the “Regulations of Shenzhen Special Economic Zone on Lease of Houses” and its rules for implementation, and the “Decisions of the Standing Committee of Shenzhen Municipal People’s Congress on Strengthening Safety Liabilities of House Leasing”.

 

Article 1 Party A will lease the real property (hereinafter referred to as the “Leased Property”) located in 1/F, Changhong Building, Sungang Road Baoan Road (West), Luohu District  for use by Party B.

 

The Leased Property has an aggregate gross floor area of 2135.86 square meters.

 

1

 

The title owner or legitimate user of the Leased Property is Zhang Zhongzhe. The name and number of the real estate title certificate or other valid certificates evidencing its property right (use right): 4245605.

 

Article 2 The unit rental of the Leased Property shall be calculated based on RMB N/A (In capital letters: N/A) per month per square meter of the area of the real estate. The total monthly rental is RMB230672.88 (In capital letters: Two Hundred and Thirty Thousand Six Hundred and Seventy-two Yuan and Eighty-eight Fen).

 

Article 3 Party B shall pay the first installment of the rental before March 1, 2017 with the amount of RMB230672.88 (In capital letters: Two Hundred and Thirty Thousand Six Hundred and Seventy-two Yuan and Eighty-eight Fen).

 

Article 4 Party B shall pay rental to Party A before:

 

√                 the 1st day of each month;

 

o            the N/A day of the N/A month on a quarterly basis;

 

o            the N/A day of the N/A month on a six-month basis;

 

o            the N/A day of the N/A month on an annual basis;

 

Party A shall issue a taxation invoice to Party B when receiving the rental.

 

(The parties shall jointly choose one of the above four items and put a “√” in the box chosen.)

 

Article 5 The lease term of the Leased Property by Party B shall be effective from March 1, 2017 until February 28, 2025.

 

The term as stipulated in the above paragraph shall not exceed the approved land use term and shall not exceed 20 years, and the exceeded portion shall be invalid.

 

Article 6 Use of the Leased Property: Commercial.

 

Party B shall not use the Leased Property for other purposes without obtaining written consent from Party A.

 

Article 7 Party A shall deliver the Leased Property to Party B for use before March 1, 2017 and complete the relevant delivery formality.

 

In the event that Party A delivers the Leased Property after the time specified in the above paragraph, Party B may request to extend the effective term of this contract. Both parties shall make confirmation by signature and file the record with the contract registration (record filing) authority.

 

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Article 8 When delivering the Leased Property, the parties shall make confirmation in respect of the current condition of the Leased Property and its ancillary facilities and the relevant situation of the ancillary property and give details on the supplementary sheet.

 

Article 9 Party A shall be entitled to receive a rental deposit equivalent to rentals for N/A months (no more than three months) from Party B when delivering the Leased Property, i.e. RMB230672.88 (In capital letters: Two Hundred and Thirty Thousand Six Hundred and Seventy -two Yuan and Eighty-eight Fen).

 

Party A shall issue a receipt to Party B for the rental deposit it receives.

 

Conditions for the refund of the rental deposit from Party A to Party B:

 

1. The lease term expires

 

2. The deposit refund procedure is completed

 

3. N/A

 

o Only one of the conditions is satisfied.

 

o All conditions are satisfied.

 

(The parties shall jointly choose one of the above two items and put a “√” in the box chosen.)

 

The way and time for refund of lease deposit: Settle all expenses and move out.

 

Party A will not refund the deposit under the following circumstances:

 

1. Party B violates the contract

 

2. N/A

 

3. N/A

 

Article 10 During the lease term, Party A shall be responsible for paying the land use fee in respect of the Leased Property and the tax arising from the leasing of the property, and N/A fee; Party B shall be responsible for paying the water and electricity charges, cleaning fee, house (building) property management fee, and related fees incurred as a result of using the Leased Property.

 

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Article 11 Party A shall ensure the safety of the Leased Property and its ancillary facilities in compliance with the relevant laws, regulations or rules.

 

Article 12 Party B shall make reasonable use of the Leased Property and its ancillary facilities and shall not use the Leased Property to conduct illegal activities. Party A shall not intervene in or hinder the normal, reasonable use of the Leased Property by Party B.

 

Article 13 During the course of using the Leased Property by Party B, if any damage or breakdown not due to mistakes of Party B happens or occurs in the Leased Property or its ancillary facilities which affects the safe and normal use, Party B shall notify Party A in a timely manner and take possible effective measures to prevent the defect from further worsening. Party A shall proceed with the maintenance within ___ days after receiving the notice from Party B or simply entrust Party B to proceed with the maintenance on Party A’s behalf. In the event that Party B is unable to notify Party A or Party A does not perform its maintenance obligations within the time as stipulated above, Party B can proceed with maintenance on Party A’s behalf.

 

In the event that prompt maintenance is required under special urgent circumstances, Party B shall first proceed with the maintenance on Party A’s behalf and notify Party A about the relevant situation in a timely manner.

 

The maintenance expenses incurred under the circumstances as mentioned in the above two paragraphs (including the reasonable expenses incurred by Party B in proceeding with maintenance on Party A’s behalf and preventing the defect from worsening) shall be borne by Party A. In the event that greater losses are incurred due to Party B’s failure in performing obligations as provided in the above two paragraphs or in making timely notification or taking possible effective measures, the maintenance expenses for such (worsened) portion shall be borne by Party B itself.

 

Article 14 In the event that any safety problem, damage or breakdown happens or occurs in the Leased Property or its ancillary facilities due to misuse or unreasonable use by Party B, Party B shall notify Party A in a timely manner and shall be responsible for maintenance or indemnification.

 

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If Party B changes the internal structure and renovation of the property or sets plans that has an impact on the equipment, scale of design, scope, process and materials thereof, written consent of Party A shall be sought in advance before commencement of construction. Upon expiration of the lease or where the lease withdrawal is due to the responsibility of Party B, unless the parties otherwise agree, Party A is entitled to choose one of the following rights:

 

o            The decoration attached to the property belongs to Party A.

 

o            Party B is requested to reinstate the property.

 

o            Party B is charged the actual expenses incurred for reinstatement works.

 

(The parties shall jointly choose one of the above three items and put a “√” in the box chosen.)

 

Article 15

 

o            During the lease term, Party B shall be entitled to lease all or part of the Leased Property to other parties and complete the registration (record filing) procedure with the competent authorities for the leasing of properties. However, the sublease term shall not exceed the lease term as stipulated in this contract;

 

√                 During the lease term and with the written consent of Party A, Party B may complete the registration (record filing) procedure with the competent authorities for the leasing of properties by producing the written proof evidencing such consent to sublease but the sublease term shall not exceed the lease term as stipulated in this contract;

 

o            During the lease term, Party B shall not lease all or part of the Leased Property to other parties.

 

(The parties shall jointly choose one of the above three items and put a “√” in the box chosen.)

 

Article 16 During the term of this contract, if Party A intends to transfer part or all of the property right of the Leased Property, it shall notify Party B in writing one month prior to the transfer. Party B shall give Party A reply within 3 working days upon receipt of written notice from Party A, and Party B shall have the right of first refusal under equivalent conditions.

 

In the event that the Leased Property is transferred to other parties, Party A shall have the responsibility of notifying the transferee to continue to perform this contract when executing the transfer contract.

 

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Article 17 During the term of this contract, this contract can be terminated or changed under one of the following circumstances:

 

(1)         This contract cannot be performed due to the occurrence of force majeure;

 

(2)         The requisition, resumption or dismantlement of the Leased Property by the government;

 

(3)         Party A and Party B reach agreement by negotiation.

 

Article 18 Under one of the following circumstances, Party A shall be entitled to:

 

o            1. request Party B to reinstate the property;

 

o            2. claim damages from Party B;

 

o            3. not refund the rental deposit;

 

o            4. request payment of a default fine by Party B in the amount of RMB235000 (In capital letters: Two Hundred and Thirty-five Thousand Yuan).

 

(The above four items shall be chosen by the parties through negotiation, provided that Item 3 and Item 4 shall not be chosen at the same time, and a “√” shall be put in the box as appropriate.)

 

(1)         Party B defaults payment of the rental for more than 5 days (N/A month);

 

(2)         Expenses for losses which might be incurred by Party A due to default by Party B exceed RMB5,000;

 

(3)         Party B uses the Leased Property to conduct illegal activities, damaging public interest or the interest of other parties;

 

(4)         Party B changes the structure or use of the Leased Property without authorization;

 

(5)         Party B violates Article 14 of this contract by not undertaking maintenance responsibility or paying the maintenance fee, resulting in severe damages of the Leased Property or facilities;

 

(6)         Without the consent of Party A and the approval of the relevant authorities, Party B proceeds with renovation of the Leased Property without authorization;

 

(7)         Party B subleases the Leased Property to a third party without authorization.

 

In addition to affixing Party B’s damage or default responsibilities, Party A shall be entitled to terminate the contract or propose to Party B to change the provisions of the contract in accordance with the above circumstances. Once the notice of termination of contract is served, Party A is entitled to apply for unilateral termination of contract registration (record filing).

 

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Article 19 Under one of the following circumstances, Party B shall be entitled to:

 

o            1. claim damages from Party A;

 

o            2. request Party A to refund the rental deposit in a double amount;

 

o            3. request payment of a default fine by Party A in the amount of RMB N/A (In capital letters N/A Yuan) for losses caused as a result.

 

(The above three items shall be chosen by the parties through negotiation, provided that Item 2 and Item 3 shall not be chosen at the same time, and a “√” shall be put in the box as appropriate.)

 

(1)         Party A delays the delivery of the Leased Property by more than N/A days (N/A month(s));

 

(2)         Party A violates Article 11 of this contract such that the safety of the Lease Property is not incompliance with the provisions of law, regulation or rules;

 

(3)         Party A violates Article 13 of this contract by not undertaking maintenance responsibility or paying the maintenance fee;

 

(4)         Without the consent of Party B or the approval of the relevant authorities, Party A reconstructs, expands or renovates the Leased Property.

 

(5)         Party A unilaterally requests early rescission (termination) of contract without proper reasons

 

Apart from affixing Party A’s damage or default responsibilities, Party B shall be entitled to make suggestions to Party A to change the terms of the contract or terminate the contract in accordance with the above circumstances. Once the notice of termination of contract is served, Party B is entitled to apply for unilateral termination of contract registration (record filing).

 

Article 20 Upon termination of this contract, Party B shall move out of and return the Leased Property within the same day and ensure the integrity of the Leased Property and ancillary facilities (other than normal wear and tear). Meanwhile, it shall settle all expenses which shall be borne by Party B and complete the relevant delivery procedure.

 

If Party B fails to move out of or return the Leased Property within the time limit, Party A is entitled to take back the Leased Property in accordance with law or the stipulations in the contract, and charge double rental from Party B for the portion where the time limit is exceeded as indemnification.

 

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Article 21 If Party B intends to continue to lease the Leased Property upon expiry of the lease term specified in this contract, it shall make requests to Party A for renewal 3 months before the expiry of the lease term. Under equivalent conditions, Party B shall have the priority to lease the Leased Property.

 

If Party A and Party B manage to reach an agreement on renewal, they shall enter into a new contract and proceed with a new registration (record filing) with the competent authorities for the leasing of properties.

 

Article 22 Both Party A and Party B shall sign the “Responsibility Letter for Shenzhen Housing Lease Safety Management”. The Leased Property provided by Party A shall conform to the standards and conditions for safe use and there shall be no potential safety hazards. The construction, fire-fighting equipment, gas facilities, electric power facilities, entrances and exits, etc. of the Leased Property shall comply with the regulations or standards for safe production, fire-fighting, public security, environmental protection and sanitation prescribed by the municipal government. Party B shall use the Leased Property strictly in accordance with the regulations and standards for safety, fire-fighting, public security, environmental protection and sanitation prescribed by government functional departments, and shall be obliged to ensure that there are no potential safety hazards in the use of the Leased Property. Both Party A and Party B shall perform the contract consciously. In the event that one party breaches the contract, it shall take the corresponding responsibility for breaching the contract in accordance with the stipulations in the contract.

 

Article 23 Party A and Party B can agree on other terms in the supplementary sheet for matters not dealt with in this contract. The content of the supplementary sheet is an integral part of this contract and has the same effect with this contract after being signed and sealed by the parties.

 

If Party A and Party B reach an agreement on changing the content of this contract during the lease term, they shall register (file records) with the original competent authorities for the leasing of properties within ten days upon reaching an agreement on the change.

 

Article 24 If there is any dispute between Party A and Party B in respect of this contract, they shall settle the dispute through negotiation. If the dispute is not settled through negotiation, they shall refer the dispute to the competent authorities for the leasing of properties for mediation, or they shall:

 

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o            apply to Shenzhen Arbitration Committee for arbitration;

 

o            apply to Shenzhen Court of International Arbitration for arbitration;

 

o            initiate legal actions at the people’s court where the Leased Property is located.

 

(One of the above items for the settlement of disputes shall be chosen by the parties through negotiation and a “√” shall be put in the box as appropriate.)

 

Article 25 Party A and Party B agree that the following correspondence addresses shall be the addresses for serving the notices or documents of both parties:

 

Party A’s address for service: Suite 2008, Changhong Building, Sungang Road, Luohu District

 

Party B’s address for service: 3/F, Changhong Building, Sungang Road, Luohu District

 

If the above addresses are not agreed upon, the correspondence addresses in the contract signed by both parties shall be used as the addresses for service.

 

The addresses for service shall remain valid without written notice of change. Notices or documents sent by one party to the other party by post at the address for service are deemed to have been served. If a document sent by post to the abovementioned address is returned by the postal department, the date of return shall be deemed to be the date of service.

 

Article 26 This contract shall take effect upon execution.

 

Party A and Party B shall proceed with registration or record filing with the competent authorities for the leasing of properties within 10 days from the execution date of this contract.

 

Article 27 The original of this contract is in Chinese.

 

Article 28 This contract is made in triplicate with Party A holding one copy, Party B holding one copy, the contract registration authority holding one copy, and the relevant authority holding N/A copy.

 

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Signed and   sealed by Party A:

 

Legal   representative:

Contact   telephone: 82116121

Bank account   number:
    	
 
    	
 
    
	
Signed and   sealed by the authorized agent:
    	
/s/ Zhang Miaoxiang
    	
 
    
	
Date: February 28,   2017
    	
 
    	
 
    

 

	
Signed and   sealed by Party B (stamp):
    	
 
    	
 
    
	
[affixed the   official seal of Shenzhen Pengcheng Hospital Co., Ltd.]
    	
 
    
	
 
    	
 
    	
 
    
	
Legal representative:
    	
 
    	
 
    
	
Contact telephone:   25933390
    	
 
    	
 
    
	
Bank account number:
    	
 
    	
 
    
	
Signed and sealed by   the authorized agent:
    	
/s/ Fan Shengqi
    	
 
    
	
Date: February 28,   2017
    	
 
    	
 
    

 

 

10

 

(Supplementary Sheet)

 

Attachment:

 

The rents for 1/F of Changhong Building are collected as per the table below

 

	
 
    	
 
    	
Amount of Monthly Rent (Currency: Renminbi)
    
	
Lease Term
    	
 
    	
In Alphabetical
   Number
    	
 
    	
In Capital Letters
    
	
March 1, 2017 to February 28, 2019
    	
 
    	
230672.88
    	
 
    	
Two Hundred and Thirty Thousand Six Hundred and   Seventy-two Yuan and Eighty-eight Fen
    
	
March 1, 2019 to February 29, 2020
    	
 
    	
239899.79
    	
 
    	
Two Hundred and Thirty-nine Thousand Eight Hundred   and Ninety-nine Yuan and Seventy-nine Fen
    
	
March 1, 2020 to February 28, 2021
    	
 
    	
249495.78
    	
 
    	
Two Hundred and Forty-nine Thousand Four Hundred and   Ninety-five Yuan and Seventy-eight Fen
    
	
March 1, 2021 to February 28, 2022
    	
 
    	
259475.61
    	
 
    	
Two Hundred and Fifty-nine Thousand Four Hundred and   Seventy-five Yuan and Sixty-one Fen
    
	
March 1, 2022 to February 28, 2023
    	
 
    	
272449.39
    	
 
    	
Two Hundred and Seventy-two Thousand Four Hundred   and Forty-nine Yuan and Thirty-nine Fen
    
	
March 1, 2023 to February 29, 2024
    	
 
    	
286071.85
    	
 
    	
Two Hundred and Eighty-six Thousand Seventy-one Yuan   and Eighty-five Fen
    
	
March 1, 2024 to February 28, 2025
    	
 
    	
300375.44
    	
 
    	
Three Hundred Thousand Three Hundred and   Seventy-five Yuan and Forty-four Fen
    

 

	
Party A:
    	
/s/ Zhang Miaoxiang
    	
 
    	
Party B:
    	
/s/ Fan Shengqi
    
	
 
    	
 
    	
 
    	
 
    	
[affixed the official seal of Shenzhen Pengcheng Hospital   Co., Ltd.]

 
    

 

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