Document:

exhibit101purchaseandsal

   Exhibit 10.1                  PURCHASE AND SALE AGREEMENT      SELLER:         US RIO, LP,    a Delaware limited partnership         PURCHASER:      COLE CCIT ACQUISITIONS, LLC,   a Delaware limited liability company         PROPERTY:      The Amazon.Com Distribution Facility commonly known as the Amazon Fulfillment Center, located in   the Meadowville Technology Park in Chesterfield County, Virginia         July 30, 2013        

 

i   TABLE OF CONTENTS      1.  The Property .......................................................................................................................................... 1    1.1  Description .................................................................................................................................... 1    1.2  As-Is Purchase .............................................................................................................................. 2    1.3  Agreement to Convey ................................................................................................................... 3    2.  Price and Payment ................................................................................................................................. 3    2.1  Purchase Price ............................................................................................................................... 3    2.2  Earnest Money and Independent Consideration ........................................................................... 3    2.3  Closing .......................................................................................................................................... 4    3.  Inspections and Approvals .................................................................................................................... 4    3.1  Inspections .................................................................................................................................... 4    3.2  Title and Survey ............................................................................................................................ 6    3.3  Contracts ....................................................................................................................................... 7    3.4  Permitted Encumbrances ............................................................................................................... 8    3.5  Miscellaneous Property Information ............................................................................................. 8    3.6  Purchaser's Right to Terminate ..................................................................................................... 8    3.7  Tenant Estoppels ........................................................................................................................... 9    4.  Prior to Closing ..................................................................................................................................... 9    4.1  Insurance ....................................................................................................................................... 9    4.2  Maintenance .................................................................................................................................. 9    4.3  New Contracts ............................................................................................................................... 9    4.4  New Leases and Amendments ...................................................................................................... 9    5.  Representations and Warranties .......................................................................................................... 10    5.1  By Seller ...................................................................................................................................... 10    5.2  By Purchaser ............................................................................................................................... 14    5.3  Broker ......................................................................................................................................... 16    6.  Costs and Prorations ........................................................................................................................... 16    6.1  Seller's Costs ............................................................................................................................... 16    6.2  Purchaser's Costs ......................................................................................................................... 17    6.3  Prorations .................................................................................................................................... 17    6.4  Taxes ........................................................................................................................................... 18    6.5  In General .................................................................................................................................... 18    6.6  Purpose and Intent ....................................................................................................................... 18    7.  Damage, Destruction or Condemnation .............................................................................................. 18    7.1  Material Event ............................................................................................................................. 18    7.2  Immaterial Event ......................................................................................................................... 19    7.3  Termination and Return of Deposit ............................................................................................ 19    8.  Notices ................................................................................................................................................ 19    9.  Closing and Escrow ............................................................................................................................ 20    9.1  Conditions Precedent to Closing ................................................................................................. 20    9.2  Escrow Instructions ..................................................................................................................... 21    9.3  Seller's Deliveries ........................................................................................................................ 21    9.4  Purchaser's Deliveries ................................................................................................................. 22    9.5  Insurance ..................................................................................................................................... 22    9.6  Possession ................................................................................................................................... 22    9.7  Post-Closing Collections ............................................................................................................. 22    10.  Default; Failure of Condition .......................................................................................................... 23    10.1  Purchaser Default ........................................................................................................................ 23    10.2  Seller Default .............................................................................................................................. 23    10.3  Waiver of Trial by Jury ............................................................................................................... 24     

 

ii   10.4  Limited Liability ......................................................................................................................... 24    11.  Miscellaneous ................................................................................................................................. 24    11.1  Entire Agreement ........................................................................................................................ 24    11.2  Severability ................................................................................................................................. 24    11.3  Applicable Law ........................................................................................................................... 24    11.4  Assignability ............................................................................................................................... 24    11.5  Successors Bound ....................................................................................................................... 24    11.6  Breach ......................................................................................................................................... 24    11.7  No Public Disclosure .................................................................................................................. 25    11.8  Captions ...................................................................................................................................... 25    11.9  Attorneys' Fees ............................................................................................................................ 25    11.10  No Partnership ........................................................................................................................ 25    11.11  Time of Essence ...................................................................................................................... 25    11.12  Counterparts ............................................................................................................................ 25    11.13  Recordation ............................................................................................................................. 25    11.14  Proper Execution ..................................................................................................................... 25    11.15  Right of First Offer; Right of First Refusal ............................................................................. 26    11.16  Committee Approval ............................................................................................................... 26    11.17  Effective Date Conditioned Upon Deposit ............................................................................. 26    11.18  Time to Execute and Deliver .................................................................................................. 26    11.19  Term Sheet .............................................................................................................................. 26    11.20  No Recording .......................................................................................................................... 26    11.21  1031 Exchange ........................................................................................................................ 26    11.22  Calculation of Time Periods ................................................................................................... 27   11.23 Simultaneous Closing...................................................................................30   11.24 Guaranty...................................................................................................30   11.25 On-Going Warranty Work..............................................................................30   11.26 Post-Closing Agreement................................................................................30            

 

iii   LIST OF EXHIBITS   Exhibit 1.1.1             Legal Description   Exhibit 1.1.6 List of Contracts as of the Effective Date   Exhibit 3.5 Miscellaneous Property Information   Exhibit 5.1.3 Seller's Disclosure Statement   Exhibit 5.1.3(ii) Environmental Reports and Documents   Exhibit 9.3.1 Form of Special Warranty Deed   Exhibit 9.3.2 Form of Bill of Sale   Exhibit 9.3.4  Form of Assignment of Lease and Warranties   Exhibit 9.3.5 Form of Assignment and Assumption of Contracts    Exhibit 9.3.7 Affidavit Pursuant to Foreign Investment and Real   Property Tax Act   Exhibit 9.3.8 Incumbency Affidavit   Exhibit 9.3.10   Exhibit 11.25   Form of Tenant Notice Letter   Schedule of Repairs                   

 

iv   TERM SHEET*         SELLER:       US RIO, LP   NOTICE ADDRESS: Section 8 c/o U.S. Real Estate Limited Partnership   9830 Colonnade Boulevard, Suite 600   San Antonio, TX 78230-2239   Attention: John Post   Telephone: (210) 641-8456   Facsimile: (210) 641-8463   E-mail: john.post@usrealco.com      With a copy to:      USAA Real Estate Company   9830 Colonnade Boulevard, Suite 600   San Antonio, TX 78230-2239   Attention: Stephen Waters, Esq.    Telephone: (210) 641-8414   Facsimile: (210) 579-6889   E-mail: steve.waters@usrealco.com      With a copy to:      Golden Steves Cohen & Gordon LLP   300 Convent Street, Suite 2600   San Antonio, Texas 78205   Attention: Andy Cohen   Telephone (210) 745-3745   Facsimile: (210) 745-3737   E-mail: acohen@goldensteves.com      PURCHASER:       Cole CCIT Acquisitions, LLC      NOTICE ADDRESS: Section 8 c/o Cole Real Estate Investments, Inc.   2325 E. Camelback Road, Suite 1100   Phoenix, AZ  85016   Attn:  Daniel Haug              Vice President, Legal Services   Telephone:  (602) 952-4488   Facsimile:   (480) 449-7012   E-mail:  dan.haug@colereit.com               

 

v     With a copy to:      Morris, Manning & Martin, LLP   1600 Atlanta Financial Center   3343 Peachtree Road, N.E.   Atlanta, GA 30326   Attn:  Marc R. Bulson, Esq.   Telephone:  (404) 504-7783   Facsimile:  (404) 365-9532   E-mail: mbulson@mmmlaw.com      PROPERTY:      Section 1.1.1 The Amazon.com distribution facility located in   the Meadowville Technology Park, situated in   Chesterfield County, Virginia, more particularly   described herein.       PURCHASE PRICE:      Section 2.1 $81,250,000.00   DEPOSIT:      Section 2.2.1 Deposit: $812,500.00         VOID DATE:      Section 11.18 July 30, 2013 with respect to Title Company’s   confirmation of receipt of a fully executed copy   of this Agreement and July 31, 2013 with respect   to Title Company’s confirmation of receipt of the   Deposit      TITLE COMPANY:      Section 2.2.1(b) mailto:First American Title Insurance Company   National Commercial Services   The Esplanade Commercial Center   2425 E. Camelback Road, Suite 300   Phoenix, AZ  85016   Attention:  Brandon Grajewski   Telephone:  (602) 567-8145   Facsimile:    (602) 567-8101   E-mail: bgrajewski@firstam.com       APPROVAL DATE:      Section 3.6 July 30, 2013   CLOSING DATE:      Section 2.3 July 31, 2013, as may be extended pursuant to the   terms of this Agreement.      BROKER:      Section 5.3  CBRE            * To the extent of any conflict between the terms and provisions of this Term Sheet and the Purchase and   Sale Agreement, the terms and provisions of the Purchase and Sale Agreement shall govern and control.     

 

   1      PURCHASE AND SALE AGREEMENT         THIS PURCHASE AND SALE AGREEMENT (this “Agreement”), is made as of the 30th day   of July, 2013 (the "Effective Date") by and between US RIO, LP, a Delaware limited partnership   ("Seller"), with an office at 9830 Colonnade Boulevard, Suite 600, San Antonio, Texas 78230-2239, and   COLE CCIT ACQUISITIONS, LLC, a Delaware limited liability company ("Purchaser"), with an office   at 2325 East Camelback Road, Suite 1100, Phoenix, Arizona 85016.      R E C I T A L S:       Seller desires to sell Seller’s interest in and to that certain improved parcel of real property   commonly known as the Amazon Fulfillment Center, located in the Meadowville Technology Park,   situated in Chesterfield County, Virginia and legally described on Exhibit 1.1.1 attached hereto (the   “Land”), along with certain related personal and intangible property, and Purchaser desires to purchase   Seller’s interest in and to such real, personal and intangible property.        NOW, THEREFORE, in consideration of the foregoing, of the covenants, promises and   undertakings set forth herein, and for good and valuable consideration, the receipt and sufficiency of   which are hereby acknowledged, Seller and Purchaser agree as follows:      1. The Property.      1.1 Description. Subject to the terms and conditions of this Agreement, and for the   consideration herein set forth, Seller agrees to sell and transfer, and Purchaser agrees to purchase and   acquire, all of Seller's right, title, and interest in and to the following (collectively, the “Property”):      1.1.1 the Land;      1.1.2 The buildings, parking areas, improvements, and fixtures now situated on the   Land (the "Improvements");      1.1.3 All personal property, machinery, apparatus, and equipment currently situated on   the Land and used in the operation, repair and maintenance of the Land and Improvements and   situated thereon, if any (collectively, the “Personal Property”), such Personal Property being   more particularly described on Exhibit 1.1.3 attached hereto. The Personal Property to be   conveyed is subject to depletions, replacements and additions in the ordinary course of business;      1.1.4 All easements, hereditaments, and appurtenances belonging to or inuring to the   benefit of Seller and pertaining to the Land, if any;      1.1.5 That certain Lease Agreement dated as of December 21, 2011 by and between   Seller, as landlord and Amazon.com.kydc, LLC, as tenant (“Tenant”), copies of which lease has   been provided to Purchaser, and all guaranties thereof (the “Tenant Lease”);        1.1.6 Subject to Section 3.3, contracts and agreements relating to the operation or   maintenance of the Land, Improvements or Personal Property to which Seller is party, the terms   of which extend beyond midnight of the day preceding the date of Closing, such contracts and   agreements listed on Exhibit 1.1.6 attached hereto;        

 

   2        1.1.7 Assignable warranties and guaranties issued in connection with the   Improvements or Personal Property, if any (provided, such assignment shall be on a non-   exclusive basis) (the “Warranties”), excluding Tenant’s rights in and to the warranties required to   be assigned to Tenant under the Tenant Lease; and      1.1.8 All transferable consents, authorizations, variances or waivers, licenses, permits   and approvals from any governmental or quasi-governmental agency, department, board,   commission, bureau or other entity or instrumentality solely with respect to the Land, the Tenant   Lease or the Improvements, if any (collectively, the "Approvals").       1.2 "As-Is" Purchase. THE PROPERTY IS BEING SOLD IN AN "AS IS, WHERE IS"   CONDITION AND "WITH ALL FAULTS" AS OF THE DATE OF THIS AGREEMENT AND   OF CLOSING. EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, NO   REPRESENTATIONS OR WARRANTIES HAVE BEEN MADE OR ARE MADE AND NO   RESPONSIBILITY HAS BEEN OR IS ASSUMED BY SELLER OR BY ANY PARTNER,   OFFICER, PERSON, FIRM, AGENT OR REPRESENTATIVE ACTING OR PURPORTING TO   ACT ON BEHALF OF SELLER AS TO (I) THE CONDITION OR STATE OF REPAIR OF THE   PROPERTY; (II) THE COMPLIANCE OR NON-COMPLIANCE OF THE PROPERTY WITH   ANY APPLICABLE LAWS, REGULATIONS OR ORDINANCES (INCLUDING, WITHOUT   LIMITATION, ANY APPLICABLE ZONING, BUILDING OR DEVELOPMENT CODES); (III)   THE VALUE, EXPENSE OF OPERATION, OR INCOME POTENTIAL OF THE PROPERTY;   (IV) THE CREDIT-WORTHINESS OF ANY TENANT, VENDOR OR OTHER PERSON OR   ENTITY; (V) ANY OTHER FACT OR CONDITION WHICH HAS OR MIGHT AFFECT THE   PROPERTY OR THE CONDITION, STATE OF REPAIR, COMPLIANCE, VALUE, EXPENSE   OF OPERATION OR INCOME POTENTIAL OF THE PROPERTY OR ANY PORTION   THEREOF; OR (VI) WHETHER THE PROPERTY CONTAINS ASBESTOS OR HARMFUL OR   TOXIC SUBSTANCES OR PERTAINING TO THE EXTENT, LOCATION OR NATURE OF   SAME. THE PARTIES AGREE THAT ALL UNDERSTANDINGS AND AGREEMENTS   HERETOFORE MADE BETWEEN THEM OR THEIR RESPECTIVE AGENTS OR   REPRESENTATIVES ARE MERGED IN THE AGREEMENT AND THE EXHIBITS HERETO   ANNEXED, WHICH ALONE FULLY AND COMPLETELY EXPRESS THEIR AGREEMENT,   AND THAT THIS AGREEMENT HAS BEEN ENTERED INTO AFTER FULL   INVESTIGATION, OR WITH THE PARTIES SATISFIED WITH THE OPPORTUNITY   AFFORDED FOR FULL INVESTIGATION, NEITHER PARTY RELYING UPON ANY   STATEMENT OR REPRESENTATION BY THE OTHER UNLESS SUCH STATEMENT OR   REPRESENTATION IS SPECIFICALLY EMBODIED IN THIS AGREEMENT OR THE   EXHIBITS ANNEXED HERETO. TO THE EXTENT THAT SELLER HAS PROVIDED TO   PURCHASER ANY SURVEYS, TITLE COMMITMENTS, INSPECTION, ENGINEERING OR   ENVIRONMENTAL REPORTS (INCLUDING REPORTS CONCERNING ASBESTOS OR   HARMFUL OR TOXIC SUBSTANCES, OR ANY OTHER MATERIALS, INFORMATION OR   DATA IN CONNECTION WITH PURCHASER'S INSPECTION OF THE PROPERTY),   SELLER MAKES NO REPRESENTATIONS OR WARRANTIES WITH RESPECT TO THE   ACCURACY OR COMPLETENESS, METHODOLOGY OF PREPARATION OR OTHERWISE   CONCERNING THE CONTENTS OF SUCH REPORTS, MATERIALS, INFORMATION AND   DATA. PURCHASER ACKNOWLEDGES THAT ANY SUCH REPORTS, MATERIALS,   INFORMATION AND DATA MADE AVAILABLE TO PURCHASER ARE MADE AVAILABLE   AS A CONVENIENCE AND AN ACCOMMODATION ONLY, AND THAT SELLER HAS   REQUESTED PURCHASER TO INSPECT FULLY THE PROPERTY AND INVESTIGATE   ALL MATTERS RELEVANT THERETO AND TO RELY SOLELY UPON THE RESULTS OF   PURCHASER'S OWN INSPECTIONS OR OTHER INFORMATION OBTAINED OR     

 

   3      OTHERWISE AVAILABLE TO PURCHASER, RATHER THAN ANY INFORMATION THAT   MAY HAVE BEEN PROVIDED BY SELLER TO PURCHASER.      EXCEPT FOR THOSE REPRESENTATIONS AND WARRANTIES SET FORTH IN   SUBSECTION 5.1.1 THROUGH 5.1.3, PURCHASER WAIVES AND RELEASES SELLER   FROM ANY PRESENT OR FUTURE CLAIMS ARISING FROM OR RELATING TO THE   CONDITION, OPERATION OR ECONOMIC PERFORMANCE OF THE PROPERTY,   INCLUDING, WITHOUT LIMITATION, THE PRESENCE OR ALLEGED PRESENCE OF   ASBESTOS OR HARMFUL OR TOXIC SUBSTANCES IN, ON, UNDER OR ABOUT THE   PROPERTY INCLUDING, WITHOUT LIMITATION, ANY CLAIMS UNDER OR ON   ACCOUNT OF (I) THE COMPREHENSIVE ENVIRONMENTAL RESPONSE,   COMPENSATION AND LIABILITY ACT OF 1980, AS THE SAME MAY HAVE BEEN OR   MAY BE AMENDED FROM TIME TO TIME, AND SIMILAR STATE STATUTES, AND ANY   REGULATIONS PROMULGATED THEREUNDER; (II) ANY OTHER FEDERAL, STATE OR   LOCAL LAW, ORDINANCE, RULE OR REGULATION, NOW OR HEREAFTER IN EFFECT,   THAT DEALS WITH OR OTHERWISE IN ANY MANNER RELATES TO, ENVIRONMENTAL   MATTERS OF ANY KIND; OR (III) THE COMMON LAW.       THE TERMS AND PROVISIONS OF THIS SECTION SHALL SURVIVE CLOSING   HEREUNDER.         /s/ TW_______________            /s/ JP_______________   Purchaser's Initials               Seller's Initials      1.3 Agreement to Convey. Seller agrees to convey, and Purchaser agrees to accept, title to the   Land and related Improvements by special warranty deed in the condition described in Section 3.4 and   title to the Personal Property, by bill of sale, without warranty as to the title or the condition of such   personalty, and Seller agrees to assign, and Purchaser agrees to accept, an assignment of Seller’s interest   in the Tenant Lease and Warranties pursuant to assignment  and assumption of leases and assignment of   Seller’s interest in the Approvals and Contracts pursuant to an assignment of contract, all as more   particularly set forth herein.      2. Price and Payment.      2.1 Purchase Price. Subject to the provisions of the immediately following paragraph, the   total purchase price (the "Purchase Price") to be paid by Purchaser to Seller for the sale and conveyance   of Seller’s interest in the Property shall be payable in full in cash at the Closing, and subject to prorations   as herein set forth, is Eighty One Million Two Hundred Fifty Thousand and NO/100ths DOLLARS   ($81,250,000.00). All references in this Agreement to dollars means United States Dollars.        2.2 Earnest Money and Independent Consideration. Payment of the Purchase Price is to be   made in cash as follows:      2.2.1 (a) On July 31, 2013, Purchaser shall deposit earnest money with the Title   Company (as hereinafter defined) in the amount of Eight Hundred Twelve Thousand Five   Hundred AND NO/100 DOLLARS ($812,500.00) (the “Deposit”) in the form of cash to be   held by Title Company pursuant to the terms, covenants and conditions of this Agreement.    Upon delivery of the Deposit to the Title Company, the Deposit shall be non-refundable   (except as otherwise specified herein). The Deposit shall be in good funds, either by   cashier’s check or by federal wire transfer and shall be delivered to and held by the Title     

 

   4      Company pursuant to the terms, covenants and conditions of this Agreement. If Purchaser   fails to make the Deposit as and when required herewith, Seller may terminate this   Agreement by written notice to Purchaser, in which case the parties shall have no further   obligation to each other except for any provisions that expressly survive the termination of   this Agreement.         (b) The Deposit will be placed with and held in escrow by First   American Title Insurance Company, National Commercial Services, The Esplanade   Commercial Center, 2425 E. Camelback Road, Suite 300, Phoenix, Arizona 85016,   Attention: Brandon Grajewski (the “Title Company”), in immediately available funds in   an interest bearing account at a mutually acceptable banking institution.  Any interest   earned by the Deposit shall be considered as part of the Deposit.  Except as otherwise   provided in this Agreement, the Deposit will be applied to the Purchase Price at Closing.         (c) Prior to or contemporaneous with the execution hereof by Purchaser   and Seller, Purchaser has paid to Seller ONE HUNDRED AND NO/100 DOLLARS   ($100.00) (“Independent Contract Consideration”), which amount Seller and Purchaser   bargained for and agreed to as consideration for Seller's execution and delivery of this   Agreement. The Independent Contract Consideration is non-refundable and in addition to   any other payment or deposit required by this Agreement, and Seller shall retain the   Independent Contract Consideration notwithstanding any other provision of this   Agreement to the contrary.      2.3 Closing. Payment of the Purchase Price and the closing hereunder (the "Closing") shall   be subject to the satisfaction of the conditions precedent set forth in Section 9.1 and shall take place   pursuant to an escrow closing on or before July 31, 2013, as may be extended pursuant to the terms of this   Agreement (the "Closing Date"), at the offices of the Title Company at a time to be mutually agreed upon   by the parties or at such other time and place as may be agreed upon in writing by Seller and Purchaser.      3. Inspections and Approvals.      3.1 Inspections.      3.1.1 Seller agrees to allow Purchaser and Purchaser's engineers, architects, employees,   agents and representatives reasonable access, during normal business hours to the Property   (subject in all respects to the rights of Tenant under the terms of the Tenant Lease) and to the   records, if any, maintained by or for Seller by Seller or Seller's property management company or   otherwise within the possession or control of Seller or its representatives. Such access shall be   solely for the purposes of (i) reviewing the Tenant Lease and any records relating thereto; (ii)   reviewing records relating to operating expenses; and (iii) inspecting the physical condition of the   Property and conducting non-intrusive physical and environmental tests and inspections of the   Property. PURCHASER SHALL NOT CONDUCT OR ALLOW ANY PHYSICALLY   INTRUSIVE TESTING OF, ON OR UNDER THE LAND OR THE IMPROVEMENTS   WITHOUT FIRST OBTAINING SELLER'S WRITTEN CONSENT AS TO THE TIMING   AND SCOPE OF WORK TO BE PERFORMED, WHICH CONSENT MAY BE   WITHHELD IN SELLER’S SOLE AND ABSOLUTE DISCRETION.       3.1.2 Purchaser agrees that, in making any inspections of, or conducting any testing of,   on or under, the Property, Purchaser and all representatives of Purchaser entering onto the   Property shall each carry (a) not less than $1,000,000 commercial general liability insurance, and   (b) excess or umbrella liability insurance with limits of not less than $2,000,000, insuring all     

 

   5      activity and conduct of Purchaser and such representatives while exercising such right of access.   Purchaser represents and warrants that it carries not less than the coverage set forth in paragraphs   (a) and (b) of this Section 3.1.2 with contractual liability endorsement which insures Purchaser's   indemnity obligations hereunder, and, upon request of Seller, will provide Seller with written   evidence of same.      3.1.3 Purchaser agrees that in exercising its right of access hereunder, Purchaser will   use (and cause its representatives to use) its best efforts not to interfere with the activity of tenants   or any persons occupying or providing service at the Property. Purchaser shall give Seller   reasonable prior notice of its intention to conduct any inspections or tests, so that Seller shall have   a reasonable opportunity to have a representative present during any such inspection or test, and   Seller expressly reserves the right to have such a representative present. Failure of Seller to   respond within three (3) business days of such notice shall be deemed approval by the Seller of   such inspections or tests; provided, Seller’s failure to respond shall not be deemed approval of   any physically intrusive testing which shall be governed in all respects by the terms of Section   3.1.1 above. Purchaser agrees to cooperate with any reasonable request by Seller in connection   with the timing of any such inspection or test. Purchaser agrees to provide Seller with a copy of   any written inspection or test report or summary upon Seller's request therefor, provided Seller   pays Purchaser 50% of the costs of such inspections or reports which obligation shall survive any   termination of this Agreement or Closing.      3.1.4 Unless Seller specifically and expressly otherwise agrees in writing, Purchaser   agrees that (a) the results of all inspections, tests, analyses, studies and similar reports relating to   the Property prepared by or for Purchaser utilizing any information acquired in whole or in part   through the exercise of Purchaser's inspection rights; and (b) all information (the "Proprietary   Information") regarding the Property of whatsoever nature made available to Purchaser by Seller   or Seller's agents or representatives is confidential and shall not be disclosed to any other person   except those assisting Purchaser with the transaction, or Purchaser's lender, and then only upon   Purchaser making such person aware of the confidentiality restriction and procuring such person's   agreement to be bound thereby and by the terms of the Existing Confidentiality Agreement (as   defined below). Purchaser agrees not to use or allow to be used any such information for any   purpose other than to determine whether to proceed with the contemplated purchase, or if same is   consummated, in connection with the operation of the Property post-Closing. Further, if the   purchase and sale contemplated hereby fails to close for any reason whatsoever, Purchaser agrees   to return to Seller, or cause to be returned to Seller, all Proprietary Information.  Notwithstanding   any other term of this Agreement, the provisions of this Section 3.1.4 shall expire upon the   earlier of (i) Closing or (ii) 365 days after the termination of this Agreement.  Notwithstanding   the foregoing, but subject to the Existing Confidentiality Agreement, the confidentiality   provisions of this Section 3.1.4 shall not apply to any disclosures made by Purchaser as required   by law, by court order, or in connection with any subpoena served upon Purchaser, provided that   Purchaser provides Seller with prompt written notice of any such requirement or subpoena (other   than where prohibited by law) so that Seller may, in its sole discretion, seek a protective order or   other appropriate remedy.  Further, the confidentiality obligations of this Section 3.1.4 shall be   inoperative as to any portions of the Proprietary Information which is or becomes generally   available to the public other than as a result of a disclosure by Purchaser or its representatives in   breach of this Agreement. The obligations under this Section 3.1.4 and Section 11.7 hereof are in   addition to and not in lieu of the confidentiality obligations contained in that certain   Nondisclosure Agreement dated as of May 3, 2013 executed by Purchaser’s affiliate for the   benefit of Tenant (the “Existing Confidentiality Agreement”) and the execution of this   Agreement shall not supersede or diminish Purchaser’s obligations thereunder and Purchaser   acknowledges that the Existing Confidentiality Agreement binds Purchaser and shall continue to     

 

   6      bind Purchaser in accordance with its terms notwithstanding the expiration of Purchaser’s   obligations under this Section 3.1.4.         3.1.5 Purchaser shall, at its sole cost and expense, promptly restore any physical   damage or alteration of the physical condition of the Property which results from any inspections   or testing conducted by or on behalf of Purchaser, which obligation shall survive Closing or the   termination of this Agreement for a period of twelve (12) months. All inspections and testing   shall be conducted at Purchaser's sole cost and expense and in strict accordance with all   requirements of applicable law.        3.1.6 Except as expressly set forth in this Agreement, Seller makes no representations   or warranties as to the truth, accuracy or completeness of any materials, data or other information   supplied to Purchaser in connection with Purchaser's inspection of the Property (e.g., that such   materials are complete, accurate or the final version thereof, or that such materials are all of such   materials as are in Seller's possession). It is the parties' express understanding and agreement that   such materials are provided only for Purchaser's convenience in making its own examination and   determination prior to the Approval Date as to whether it wishes to purchase the Property, and, in   doing so, Purchaser shall rely exclusively on its own independent investigation and evaluation of   every aspect of the Property and not on any materials supplied by Seller. Except as expressly set   forth in this Agreement, Purchaser expressly disclaims any intent to rely on any such materials   provided to it by Seller in connection with its inspection and agrees that it shall rely solely on its   own independently developed or verified information.        3.1.7 PURCHASER AGREES (WHICH AGREEMENT SHALL SURVIVE   CLOSING OR TERMINATION OF THIS AGREEMENT) TO INDEMNIFY, DEFEND,   AND HOLD SELLER FREE AND HARMLESS FROM ANY LOSS, INJURY, DAMAGE,   CLAIM, LIEN, COST OR EXPENSE, INCLUDING ATTORNEYS' FEES AND COSTS,   ARISING OUT OF PURCHASER'S AND PURCHASER’S REPRESENTATIVES’   ACTIVITIES ON THE PROPERTY IN CONNECTION WITH THEIR INSPECTIONS   AND TESTING AND ARISING OUT OF A BREACH OF THE FOREGOING   AGREEMENTS BY PURCHASER IN CONNECTION WITH THE INSPECTION AND   TESTING OF THE PROPERTY.  THE TERMS AND PROVISIONS OF THIS SECTION   SHALL SURVIVE CLOSING HEREUNDER.      3.2 Title and Survey. Seller has delivered to Purchaser copies of the existing survey of the   Land and Improvements in Seller’s possession or control (the "Survey"). Purchaser has obtained with   respect to the Property a current (meaning bearing an issue date not earlier than thirty (30) days prior to   the Effective Date) title commitment for the issuance of a standard ALTA Owner’s Title Insurance Policy   with respect to Seller's interest in the Land, appurtenances and Improvements (the "Title Commitment"),   and Purchaser has provided or caused the Title Company to provide Seller copies of the Title   Commitment and copies of all documents and instruments referred to as exceptions to title in the Title   Commitment.  The Title Commitment is in an amount equal to the Purchase Price. Purchaser has   provided written notice dated July 23, 2013 to Seller of matters shown by the Title Commitment or   Survey which are not satisfactory to Purchaser (the "Title Notice").  Seller shall have until the Closing   Date to elect to cure or not to cure any title objections to the satisfaction of the Purchaser.  If Seller elects   not to cure such objections, Purchaser may terminate this Agreement in its sole discretion and the Title   Company shall refund the Deposit to Purchaser.  If the Seller elects to cure such title objections to the   satisfaction of the Purchaser, then the parties shall then have until the Closing Date to make such   arrangements or take such steps as they shall mutually agree to satisfy Purchaser's objection(s); provided,   however, except as otherwise provided herein, Seller shall have no obligation whatsoever to expend or   agree to expend any funds, to undertake or agree to undertake any obligations or otherwise to cure or     

 

   7      agree to cure any title or survey objections, and Seller shall not be deemed to have any obligation to cure   unless Seller expressly undertakes such an obligation by a written notice to or written agreement with   Purchaser given or enter into on or prior to the Approval Date and which recites that it is in response to a   Title Notice.  Notwithstanding the foregoing, all exceptions to title shown on the Title Commitment or   otherwise arising prior to the Closing which evidence (i) mortgages or deeds of trust encumbering Seller’s   fee interest in the Property; (ii) judgment liens evidencing non-appealable judgments rendered against   Seller and encumbering Seller’s fee interest in the Property; or (iii) mechanic’s or materialmen’s liens   encumbering Seller’s fee interest in the Property and arising from any work performed or materials   furnished for or on behalf of Seller (items i, ii, and iii above collectively referred to as “Lien   Exceptions”), shall, in each instance, be deemed objected to without any notice by Purchaser and cured   by Seller (which, in the case of a mechanic’s or materialmen’s lien shall include, at Seller’s option,   bonding around or insuring-over the mechanic’s or materialmen’s lien) at or prior to Closing. Except as   otherwise provided with respect to Lien Exceptions, Purchaser's sole right with respect to the Title   Commitment or Survey to matters to which it objected in its Title Notice shall be to elect on or before the   Closing Date to terminate this Agreement. All matters shown on the Title Commitment and/or Survey   with respect to which Purchaser failed to give a Title Notice, or with respect to which a timely Title   Notice is given but Seller fails to undertake an express obligation to cure as provided above, shall be   deemed to be approved by Purchaser and "Permitted Encumbrances" as provided in Section 3.4 hereof,   subject, however, to Purchaser's termination right provided in this Section 3.2.       Purchaser shall have the right to cause a new survey of the Property to be prepared and   certified to Purchaser, Seller and the Title Company prior to the Closing (an “Updated Survey”). If, prior   to Closing, the Updated Survey reflects, Seller discloses to Purchaser or Purchaser discovers pursuant to   an updated title commitment (an “Updated Title Commitment”) or otherwise discovers that title to the   Property is subject to defects, limitations or encumbrances other than (i) the Permitted Encumbrances; or   (ii) any matter caused by Purchaser or any person or entity claiming by, through or under Purchaser; then   Purchaser shall promptly give Seller written notice of its objection thereto.  Such written notice shall   additionally notify Seller that the Agreement may be terminated if such title defect is not removed,   bonded or insured-over in a commercially reasonable manner prior to the Closing Date. In such event,   Seller may elect to postpone the Closing for thirty (30) days and attempt to cure such objection. If   Purchaser fails to waive any such objection within ten (10) days after notice from Seller that Seller is   unable to or elects not cure the objection, this Agreement will terminate automatically and the Title   Company to return the Deposit to Purchaser, provided that Purchaser and Seller shall not be in default   hereunder, and neither party shall have any liability to the other except for the surviving obligations of   Purchaser and Seller set forth in this Agreement.  For the purposes of this Agreement, any title defect,   limitation or encumbrance, other than those enumerated in (i) – (ii) above, shall be deemed cured if the   Title Company or another title company reasonably acceptable to Purchaser and authorized to do business   in the State in which the Property is located will agree to issue a standard ALTA form of owner's title   insurance policy to Purchaser for the Purchase Price, which policy takes no exception for such defect,   limitation or encumbrance and is issued for no additional premium or for an additional premium if Seller   agrees to pay such additional premium upon Closing.      3.3 Contracts. On or before the Approval Date, Purchaser shall notify Seller in writing if   Purchaser elects not to assume at Closing any of the service, maintenance, management, supply,   landscaping and lawn or other contracts to which Seller is a party listed in Exhibit 1.1.6 relating to the   operation of the Property (the “Contracts”), copies of which Contracts have been provided to Purchaser.   If Purchaser does not notify Seller prior to the Approval Date, it shall be conclusively presumed that   Purchaser rejects all of the Contracts.  If Purchaser exercises its right not to assume one or more Contracts   at Closing, Seller shall terminate such disapproved contract(s) and make payment of any termination   charges.  Notwithstanding the foregoing, Purchaser shall have no right to terminate any Contracts which   are required to remain in full force and effect pursuant to the terms of the Tenant Lease and Purchaser     

 

   8      shall be required to assume the same at Closing.  Provided, further, that the Development Agreement (as   defined in the Tenant Lease) (the “Development Agreement”) shall not constitute a Contract for purposes   of this Agreement.      3.4 Permitted Encumbrances. Unless Purchaser terminates this Agreement pursuant to   Section 3.2 or Section 3.6 hereof, as applicable, following its opportunity fully to inspect the Property,   the state of title thereto and all other matters relating to the Property, including its feasibility for   Purchaser's intended use and its suitability as an investment, Purchaser shall be deemed to have approved   and to have agreed to purchase the Property subject to the following:        3.4.1 All exceptions to title shown in the Title Commitment or Updated Title   Commitment or matters shown on the Survey and Updated Survey which Purchaser has approved   or is deemed to have approved pursuant to Section 3.2 hereof;        3.4.2 All contracts which Purchaser has approved pursuant to Sections 3.3, 4.3 and 4.4   hereof;        3.4.3 The lien of non-delinquent real and personal property taxes and assessments;        3.4.4 Rights of parties in possession permitted under the Tenant Lease;        3.4.5 Any state of facts which the Survey or an inspection of the premises would   disclose;        3.4.6 Easements or claims of easements shown by the public records;      3.4.7 Any service, installation, connection, maintenance or construction charges due   after Closing, and subject to the proration provisions hereof, for sewer, water, electricity,   telephone, cable television or gas; and       3.4.8 The Tenant Lease.      All of the foregoing are referred to herein collectively as "Permitted Encumbrances."       3.5 Miscellaneous Property Information. Seller has provided Purchaser with the information   listed in Exhibit 3.5 ("Miscellaneous Property Information") or otherwise made such information   available to Purchaser for Purchaser's review, to the extent such information exists and is within the   possession or control of Seller.       3.6 Purchaser's Right to Terminate.    Purchaser shall have the right, for any reason or no reason, by giving Seller and Title Company   written notice (the "Termination Notice") on or before 6:00 p.m. Phoenix, Arizona time on July 30, 2013   (the "Approval Date") to terminate this Agreement.  Purchaser’s execution of this Agreement shall serve   as notice to Seller and the Title Company of Purchaser’s waiver of its termination rights under this   Section 3.6.      Notwithstanding the fact that the Tenant Lease contains a tenant right of first refusal or right of first offer   (either such right, a “ROFR”), Purchaser hereby agrees that its inspections shall commence and run   through the Approval Date as set forth in this Section 3, and commencement thereof shall not be tolled   pending receipt of a written waiver of such ROFR by Tenant; provided, however, that in return therefor,   Seller hereby agrees that, in the event Tenant does give notice of its intent to exercise the ROFR or does     

 

   9      actually exercise the ROFR, Seller shall promptly reimburse to Purchaser all reasonable out-of-pocket and   third-party property diligence expenses incurred by Purchaser, including, without limitation, reasonable   attorneys’ fees and costs, in an amount not in excess of $65,000 in the aggregate.       3.7 Tenant Estoppel and Acceptance Letter. Seller shall secure and deliver to Purchaser, on   or before the Closing Date, a signed estoppel certificate from Tenant with respect to the Tenant Lease in   the form attached as an exhibit to the Tenant Lease (the “Tenant Estoppel”) and a signed copy of the   letter executed by Tenant accepting the “Landlord Improvements” as contemplated under Section 10.1 of   the Development Agreement (the “Acceptance Letter”). If the Tenant Estoppel or Acceptance Letter   shows defaults by the lessor or the lessee under the Tenant Lease or under the Development Agreement   that are material and cannot or will not be cured by the Closing Date or illustrate any material and adverse   matters that are otherwise inconsistent with the form of the Tenant Estoppel or Acceptance Letter sent to   Tenant or if the Tenant Estoppel does not contain an acknowledgment that Tenant is not entitled to a   reduction in Base Rent pursuant to Section 4 of the Tenant Lease and Section 6.6 of the Development   Agreement (a “Material Defect”), then such delivery shall not be deemed delivery of the Tenant Estoppel   and/or Acceptance Letter, as applicable. If the Tenant Estoppel and Acceptance Letter are not delivered to   Purchaser (or deemed not delivered) on or before the Closing Date, then Seller or Purchaser shall have the   right to extend the Closing for up to fifteen (15) days upon written notice to the other party delivered on   or before 5:00 p.m. Phoenix, Arizona time on the scheduled Closing Date; provided that the Closing Date   shall occur two (2) business days following delivery of the Tenant Estoppel and/or Acceptance Letter.  If   the Tenant Estoppel and/or Acceptance Letter is not delivered to Purchaser (or deemed not delivered) at   least two (2) business days prior to the Closing Date, as may be extended by the terms of the prior   sentence, then Purchaser shall, as its sole and exclusive remedy, elect to either: (a) terminate this   Agreement upon written notice thereof delivered to Seller at least one (1) business day prior to the   Closing Date, or (b) waive such failure by Seller and close the transaction contemplated by this   Agreement, with no recourse against Seller based on such failure.  If such termination notice is given (or   deemed given as set forth below), the Title Company shall immediately return the Deposit to Purchaser   and neither party shall have any further liability hereunder except for the obligations that expressly   survive the termination of this Agreement.  If Purchaser fails to timely deliver any such termination   notice, Purchaser will be deemed to have elected to terminate this Agreement pursuant to (a) above.         4. Prior to Closing.      4.1 Insurance. Until Closing, maintain any policies of insurance that Seller is required to   maintain pursuant to the terms of the Tenant Lease.      4.2 Maintenance. Until Closing, maintain and/or cause to be maintained the condition of the   Property as required to be maintained by Seller, as lessor, under the Tenant Lease, if applicable, subject to   ordinary wear and tear.      4.3 New Contracts. After the Effective Date, Seller or Seller's agent shall, upon the written   reasonable approval of Purchaser, enter into only those third-party contracts which are necessary to carry   out its obligations under the Tenant Lease and Section 4.2 and which shall be cancelable on thirty (30)   days' written notice without penalty or termination fee. If Seller enters into any such contract, it shall   promptly provide a true, complete and correct copy thereof to Purchaser and unless Purchaser, within   seven (7) days thereafter, notifies Seller in writing of its intention to assume such contract, it shall be   treated as a contract disapproved by Purchaser under Section 3.3 hereof.      4.4 New Leases and Amendments.  After the Approval Date, Seller will not execute any new   leases or amend, terminate or accept the surrender of the Tenant Lease or waive any landlord rights or   tenant obligations under the Tenant Lease or approve any subleases without the prior written consent of     

 

   10      Purchaser, which consent shall not be unreasonably withheld. Failure of Purchaser to consent or expressly   withhold its consent within three (3) business days after receipt of such written request for such consent   shall be deemed to constitute disapproval of such lease, sublease, amendment or termination or   acceptance of the surrender of the Tenant Lease or waiver of any landlord rights or tenant obligations   under the Tenant Lease.  Notwithstanding the foregoing, if Seller proposes any new leases or proposes to   amend, terminate or accept the surrender of the Tenant Lease or waive any landlord rights or tenant   obligations under the Tenant Lease or approve any subleases within three (3) business days prior to the   Approval Date, then the parties agree that the Approval Date shall be extended three (3) additional   business days with respect to this Section 4.4 only.      Further, Seller hereby covenants to Purchaser from and after the Effective Date and until the   Closing Date or earlier termination of this Agreement:      (i) Subject to the right of first offer and/or right of refusal in favor of Tenant   under the Tenant Lease, Seller will not enter into nor execute any agreement, written or oral, under which   Seller is or could become obligated to sell the Property, or any portion thereof, to a third party, without   Purchaser’s prior written consent;      (ii) Seller will not, without the prior written consent of Purchaser, take any   action before any governmental authority having jurisdiction thereover, the object of which would be to   change the present zoning of or other land-use limitations, upon the Property, or any portion thereof, or its   potential use;      (iii) without Purchaser’s prior written consent, Seller shall not, by voluntary   or intentional act or omission to act, further cause or create any easement, encumbrance, or mechanic’s or   materialmen’s liens, and/or similar liens or encumbrances to arise or to be imposed upon Seller’s interest   in the Property or any portion thereof that effects title thereto;       (iv) Seller shall not, without the prior written consent of Purchaser, provide a   copy of, nor disclose any of the terms of, this Agreement to any appraiser, and Seller shall instruct   Seller’s Broker that it may not provide a copy of nor disclose any of the terms of this Agreement to any   appraiser without the prior written consent of Purchaser;       (v) should Seller receive notice or knowledge of any information regarding   any of the matters set forth in this Section, Seller will promptly notify Purchaser of the same in writing;   and      (vi) take such actions which Seller may be allowed under the terms of the   Tenant Lease and in accordance with such terms, to cause Tenant to comply in all material respects with   the terms, covenants and conditions of the Tenant Lease, including, but not limited to, all insurance and   maintenance obligations under the Tenant Lease.      5. Representations and Warranties.      5.1 By Seller. Seller represents and warrants to Purchaser that:       5.1.1 Seller is a Delaware limited partnership, duly organized under the laws of the   State of its organization, and is authorized to do business in the State in which the Property is   located, has duly authorized the execution and performance of this Agreement and the documents   to be delivered pursuant to Section 9.3, and such execution and performance will not result in a     

 

   11      breach of or default under any document, instrument, order or agreement to which Seller is a   party or by which Seller is bound;        5.1.2 Seller is not a "foreign person" within the meaning of Section 1445 of the   Internal Revenue Code of 1986, as amended; and        5.1.3 Except as otherwise indicated on the Disclosure Statement attached hereto as   Exhibit 5.1.3:       (i) Litigation. There is no action, suit, litigation or proceeding to which   Seller is a party the outcome of which could materially adversely affect any of the   Property pending or being prosecuted in any court or before any federal, state, county or   municipal department, commission, bureau, agency or other governmental   instrumentality, other than tax contests, if any, and to Seller’s knowledge no such action   is threatened;       (ii) Environmental. To Seller’s knowledge, other than as disclosed in the   reports and documents delivered by Seller to Purchaser pursuant to Section 3.5,   including, without limitation, the reports and documents more particularly described in   Exhibit 5.1.3 (ii), neither the Property nor Seller (as to any of the Property) is in violation   in any material respect of or liable under any existing, applicable Environmental Law, or   subject to any existing or pending investigation or inquiry by any governmental authority   or any remedial or response action or remedial or response obligations under any   Environmental Law. The term “Environmental Laws” shall mean the Comprehensive   Environmental Response, Compensation and Liability Act of 1980, 42 U.S.C. Sections   9601 et seq., the Resource Conservation and Recovery Act of 1976, 42 U.S.C. Sections   6901, et seq., the Toxic Substances Control Act, 15 U.S.C. Sections 2601 et seq., the   Hazardous Materials Transportation Act, 49 U.S.C. 1801 et seq., the Clean Water Act, 33   U.S.C. Sections 1251 et seq., as said laws have been supplemented or amended to date,   the regulations promulgated pursuant to said laws and any other administrative, federal,   state or local law, statute, rule, regulation or ordinance which regulates or proscribes the   use, storage, disposal, presence, cleanup, transportation or release or threatened release   into the environment of Hazardous Materials. The term "Hazardous Materials" shall   mean any substance, chemical, waste or other material which is listed, defined or   otherwise identified as “hazardous” or “toxic” under any of the Environmental Laws,   including, without limitation, formaldehyde, urea, polychlorinated biphenyls, petroleum,   petroleum product or by-product, crude oil, natural gas, natural gas liquids, liquefied   natural gas, or synthetic gas usable for fuel or mixture thereof, radon, asbestos and any   by-product of same;        (iii) Lease. A true and complete copy of the Tenant Lease (and all   amendments and guaranties thereto and thereof) in effect as of the Effective Date has   been provided to Purchaser. As of the Effective Date, no portion of the Property is   subject to a lease to which Seller is a party other than the Tenant Lease;       (iv) Condemnation. No condemnation proceedings have been instituted   against the Property and Seller has not received any written notice and has no knowledge   that any such proceedings or suits are contemplated;        (v) Proceedings. There are no suits or claims pending or to Seller’s   knowledge, threatened with respect to or in any manner affecting the Property, nor has     

 

   12      Seller received any correspondence or other written information to indicate that there is   any pending or threatened (a) violation of law, (b) environmental, zoning or other land   use regulation proceeding, or (c) tax levy or special assessment proceedings against the   Property or any portion thereof;        (vi) There are no unrecorded leases (other than the Tenant Lease) affecting   the Property to which Seller is a party; and Seller does not have any defeasance, lender   approval or prepayment obligations with respect to any existing financing which will   delay the originally scheduled Closing;       (vii) To Seller’s knowledge, no notice of violation has been issued with regard   to any applicable regulation, ordinance, requirement, covenant, condition or restriction   relating to the present use or occupancy of the Property by any person, authority or agency   having jurisdiction;       (viii) To Seller’s knowledge, there are no intended public improvements which   will or could result in any charges being assessed against the Property which will result in   a lien upon the Property;       (ix) Seller has not entered into and there is not existing any other agreement,   written or oral, under which Seller is or could become obligated to sell the Property   (except under the rights of first refusal and first offer pursuant to the Tenant Lease), or any   portion thereof, to a third party;       (x) Seller has not taken any action before any governmental authority having   jurisdiction thereover, the object of which would be to change the present zoning of or   other land use limitations, upon the Property, or any portion thereof, or its potential use,   and, to Seller’s knowledge, there are no pending proceedings, the object of which would   be to change the present zoning or other land use limitations;       (xi) To Seller’s knowledge, no default of Seller exists under the Tenant   Lease; Seller has sent no written notice of default to the Tenant and, to Seller’s   knowledge, no default of Tenant exists under the Tenant Lease; Seller has not received   any notice or correspondence from Tenant or Tenant’s agents indicating Tenant’s desire,   willingness or intent to amend, modify or terminate the Tenant Lease;       (xii) To Seller’s knowledge, Seller has performed its obligations under the   Development Agreement required to be performed as of the Effective Date; to Seller’s   knowledge, no default of Seller exists under the Development Agreement; and Seller has   not received any notice or correspondence from Tenant or Tenant’s agents indicating   Tenant’s desire, willingness or intent to amend, modify or terminate the Development   Agreement;        (xiii) No consent of any third party is required in order for Seller to enter into   this Agreement and perform Seller’s obligations hereunder;       (xiv) Intentionally omitted;         (xv) Seller has delivered or, if too extensive, made available to Purchaser for   review, to the extent in existence and in Seller's possession, true and complete copies of all   environmental, asbestos, soil and geotechnical reports regarding the Property;     

 

   13            (xvi) To Seller’s knowledge, Seller has not engaged in any dealings or   transactions, directly or indirectly (i) in contravention of any U.S. international or other   money laundering regulations or conventions, including, without limitation, the United   States Bank Secrecy Act, the United States Money Laundering Control Act of 1986, the   United States International Money Laundering Abatement and Anti-Terrorist Financing   Act of 2001, Trading with the Enemy Act (50 U.S.C. Section 1 et. seq., as amended), or   any foreign asset control regulations of the United States Treasury Department (31 CFR,   Subtitle B, Chapter V, as amended) or any enabling legislation or executive order relating   thereto.  Seller represents and warrants to, and covenants with Purchaser that (i) neither   Seller nor, to Seller’s knowledge, any of its owners or affiliates currently are, or shall be at   any time during the term hereof, in violation of any laws relating to terrorism or money   laundering (collectively, the “Anti-Terrorism Laws”), including without limitation   Executive Order No. 13224 on Terrorist Financing, effective September 24, 2001, and   regulations of the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC)   related to Specially Designated Nationals and Blocked Persons (SDN’s) (OFAC   Regulations), and/or the Uniting and Strengthening America by Providing Appropriate   Tools Required to Intercept and Obstruct Terrorism Act of 2001 (Public Law 107-56)(the   “USA Patriot Act”); (ii) neither Seller nor, to Seller’s knowledge, any of its owners,   affiliates, investors, officers, directors, employees, vendors, subcontractors or agents is or   shall be during the term hereof a “Prohibited Person” which is defined as follows: (1) a   person or entity owned or controlled by, affiliated with, or acting for or on behalf of, any   person or entity that is identified as an SDN on the then-most current list published by   OFAC at its official website, http://www.treas.gov/offices/cotffc/ofac/sdn/t11sdn.pdf or at   any replacement website or other replacement official publication of such list, and (2) a   person or entity who is identified as or affiliated with a person or entity designated as a   terrorist, or associated with terrorism or money laundering pursuant to regulations   promulgated in connection with the USA Patriot Act; and (iii) Seller has taken appropriate   steps to understand its legal obligations under the Anti-Terrorism Laws and has   implemented appropriate procedures to assure its continued compliance with such laws.    Seller hereby agrees to defend, indemnify, and hold harmless Purchaser, its officers,   directors, agents and employees, from and against any and all claims, damages,   losses, risks, liabilities and expenses (including reasonable attorney’s fees and costs)   arising from or related to any breach of the foregoing representations, warranties   and covenants.       5.1.4 Each of the representations and warranties of Seller contained in Section 5.1: (i)   is made as of the Effective Date; (ii) will be deemed to be remade by Seller, and to be true in all   material respects, as of Closing, subject to other matters expressly permitted in this Agreement or   otherwise specifically approved in writing by Purchaser; and (iii) will survive for a period of   twelve (12) months after the Closing ("Claims Period"). Any claim that Purchaser may have at   any time against Seller for a breach of any such representation or warranty, whether known or   unknown, which is not specifically asserted by a demand notice before the expiration of the   Claims Period and with respect to claims specified in a demand notice before the expiration of the   Claims Period that are not resolved or made the subject of litigation instituted and served prior the   expiration of three (3) months after the Claims Period, will not be valid or effective, and Seller   will have no liability with respect thereto. Additionally, any claim actually known by Purchaser   on or prior to Closing shall be deemed waived by Purchaser if Purchaser does not terminate this   Agreement on account thereof, but proceeds to Closing despite such breach. Notwithstanding   anything to the contrary contained herein, with respect to any demand notice given after Closing   but before the end of the Claims Period, in no event will Seller have any liability to Purchaser for     

 

   14      a breach of any covenant, representation or warranty under this Agreement or any Closing   Documents executed pursuant hereto (the "Other Documents") in excess of Two Million Thirty-   One Thousand Two Hundred Fifty AND 00/100 Dollars ($2,031,250.00) (the “Claims Ceiling”).    The provisions of this Section 5.1.4 shall survive Closing.       5.1.5 The continued accuracy in all material respects of the aforesaid representations   and warranties is a condition precedent to Purchaser’s obligation to close. If any of said   representations and warranties is not correct in all material respects at the time the same is made   or as of Closing (or at any time in between), and Seller had no knowledge of such inaccuracy   when the representation or warranty was made, or when remade at Closing, or if such warranty or   representation becomes inaccurate on or prior to Closing other than by reason of Seller’s action or   inaction hereunder, Purchaser may, upon being notified of such occurrence on or prior to Closing   and after the expiration of the cure period provided under Section 11.6 hereof, either   (a) terminate this Agreement upon notice to Seller and the Title Company without liability on the   part of Seller or Purchaser, subject to the surviving obligations of Seller or Purchaser under this   Agreement and the Deposit will be returned to Purchaser, or (b) waive such matter and proceed to   Closing, by notice to Seller given within ten (10) days after the expiration of the cure period in   which event Seller shall have no liability with respect to any such inaccuracy. If Purchaser fails to   give any notice within the required time period, Purchaser will be deemed to have elected to   waive such matter and to proceed to Closing. If any of said representations and warranties are not   correct in all material respects at the time the same is made or as of Closing (or any time in   between), and Seller had actual knowledge of such inaccuracy when the representation or   warranty was made, or, by its action or inaction hereunder caused the representation or warranty   to be inaccurate when remade at Closing, Purchaser may, after the expiration of the cure period, if   any, provided under Section 11.6 hereof, either (a) exercise its remedies under Section 10.2, or   (b) terminate this Agreement upon notice to Seller and the Title Company, subject to the   surviving obligations of Seller or Purchaser under this Agreement, and receive a return of the   Deposit and reimbursement by Seller of Purchaser’s out-of-pocket costs in an amount not in   excess of $75,000, or (c) waive the breach and its rights under clauses (a) and (b) and proceed to   Closing, by notice to Seller given within ten (10) days after expiration of the cure period, but in   no event later than Closing, in which event Seller shall have no liability with respect to any such   inaccuracy. If Purchaser fails to give any notice within the required time period, Purchaser will be   deemed to have elected to waive such matter and to proceed to Closing.       5.1.6 As used in this Section 5.1 and elsewhere in this Agreement, the phrase “to   Seller’s knowledge” or phrases of similar import mean and are limited to the actual current   knowledge of David Buck, Managing Director of Development of an affiliate of Seller, without   any independent investigation or inquiry having been made, and not to any constructive   knowledge of the foregoing individuals or of Seller or any investment advisor to Seller, any entity   that is a partner in such investment advisor, or any affiliates of any thereof, or to any officer,   agent, representative, or employee of Seller or such investment advisor, any such constituent   partner, or any such affiliate. Seller, during the term of this Agreement, agrees to notify Purchaser   in writing promptly in the event Seller obtains actual knowledge of any change affecting any such   representations or warranties.  Seller represents and warrants that David Buck is the Managing   Director of Development having ongoing responsibility with respect to the development of the   Property and this individual possesses comprehensive knowledge of the facts set forth in Section   5.1.      5.2 By Purchaser. Purchaser represents and warrants to Seller that:        

 

   15        5.2.1 Purchaser is a limited liability company, duly organized, validly existing and in   good standing under the laws of the State of its organization, and is or will as of Closing be,   authorized to do business in the State in which the Property is located, has duly authorized the   execution and performance of this Agreement, and such execution and performance will not   violate any material term of its certificate of incorporation or bylaws; or result in a breach of or   default under any document, instrument, order or agreement to which Purchaser is a party or by   which Purchaser is bound;        5.2.2 Purchaser is acting as principal in this transaction with authority to close the   transaction;        5.2.3 No petition in bankruptcy (voluntary or otherwise), assignment for the benefit of   creditors, or petition seeking reorganization or arrangement or other action under federal or state   bankruptcy laws is pending against or contemplated by Purchaser;        5.2.4 Intentionally Omitted;        5.2.5 Intentionally Omitted;        5.2.6 Unless otherwise disclosed to Seller in writing, neither Purchaser nor any affiliate   of Purchaser (excluding any indirect owners of Purchaser) is other than a citizen of, or   partnership, corporation or other form of legal person domesticated in, the United States of   America;        5.2.7 ERISA      (a) (i) the Property is not being acquired by or on behalf of an “employee   benefit plan” within the meaning of Section 3(3) of the Employee Retirement Income   Security Act of 1974, as amended (“ERISA”), or a “plan” within the meaning of Section   4975(e)(1) of the Code, which is subject to ERISA or section 4975 of the Code,   respectively (hereinafter referred to collectively as the “Plan”); and (ii) the assets being   used to acquire the Property or to otherwise discharge Purchaser’s obligations hereunder   are not “plan assets” within the meaning of Department of Labor Regulation section   2510.3-101, as modified by Section 3(42) of ERISA;       (b) Purchaser and all shareholders, members, partners and investors in   Purchaser are neither parties in interest, as described in section 3(14) of ERISA, nor   disqualified persons, as described in section 4975(e)(2) of the Code with respect to  any   Plan (other than a Plan maintained exclusively for the benefit of the employees of   Purchaser or Purchaser’s affiliates), which is an investor in or related to Seller;        (c) The transaction described in this Agreement does not constitute a   “prohibited transaction” within the meaning of either section 406 of ERISA or section   4975 of the Code, other than a transaction which is exempt from section 406 of ERISA   and section 4975 of the Code by virtue of  (i) a statutory or regulatory exemption granted   pursuant to section 408 of ERISA or (ii) the fact that the transaction described in this   Agreement complies with all conditions for exemptive relief contained in Prohibited   Transaction Exemption 84-14 granted by the U.S. Department of Labor (“PTE 84-14”);      (d) Purchaser shall not assign its interest hereunder to any person or entity   which does not expressly make this covenant and warranty for the benefit of Seller; and      

 

   16         (e) Purchaser covenants that in the event it determines that the   representations and warranties of Purchaser made in this Section 5.2.7 have ceased to be   accurate in any material respect, Purchaser shall notify Seller of such determination as   promptly as practicable and in any event within ten (10) days after such determination is   made; and        5.2.8 Neither Purchaser, nor any affiliate of Purchaser (excluding any indirect owners   of Purchaser), have engaged in any dealings or transactions, directly or indirectly (i) in   contravention of any U.S. international or other money laundering regulations or conventions,   including, without limitation, the United States Bank Secrecy Act, the United States Money   Laundering Control Act of 1986, the United States International Money Laundering Abatement   and Anti-Terrorist Financing Act of 2001, Trading with the Enemy Act (50 U.S.C. Section 1 et   seq., as amended), or any foreign asset control regulations of the United States Treasury   Department (31 CFR, Subtitle B, Chapter V, as amended) or any enabling legislation or executive   order relating thereto., Purchaser represents and warrants to, and covenants with Seller that (i)   neither Purchaser nor any affiliate of Purchaser (excluding any indirect owners of Purchaser),   currently are, or shall be at any time during the term hereof, in violation of Anti-Terrorism Laws,   including without limitation Executive Order No. 13224 on Terrorist Financing, effective   September 24, 2001, and regulations of the U.S. Treasury Department's Office of Foreign Assets   Control (OFAC) related to Specially Designated Nationals and Blocked Persons (SDN’s (OFAC   Regulations), and/or the USA Patriot Act; (ii) neither Purchaser, nor any affiliate of Purchaser   (excluding any indirect owners of Purchaser), is or shall be during the term hereof (1) a   Prohibited Person, and (2) a person or entity who is identified as or affiliated with a person or   entity designated as a terrorist, or associated with terrorism or money laundering pursuant to   regulations promulgated in connection with the USA Patriot Act; and (iii) Purchaser has taken   appropriate steps to understand its legal obligations under the Anti-Terrorism Laws and has   implemented appropriate procedures to assure its continued compliance with such laws.    Purchaser hereby agrees to defend, indemnify, and hold harmless Seller, it officers,   directors, agents and employees, from and against any and all claims, damages, losses, risks,   liabilities and expenses (including reasonable attorney's fees and costs) arising from or   related to any breach of the foregoing representations, warranties and covenants.         5.3 Broker. Seller and Purchaser each represents to the other that it has had no dealings,   negotiations, or consultations with any broker, representative, employee, agent or other intermediary in   connection with the Agreement or the sale of the Property except CB Richard Ellis (the “Broker”). Seller   and Purchaser agree that each will indemnify, defend and hold the other free and harmless from the   claims of any broker(s), representative(s), employee(s), agent(s) or other intermediary(ies) claiming to   have represented Seller or Purchaser, respectively, or otherwise to be entitled to compensation in   connection with this Agreement or in connection with the sale of the Property other than Broker. Broker   will be compensated by Seller pursuant to the terms of a separate agreement between Seller and Broker.   The terms and provisions of this paragraph shall survive Closing hereunder.      6. Costs and Prorations.      6.1 Seller's Costs. Seller will pay the following costs of closing this transaction:       6.1.1 The fees and disbursements of Seller's counsel;        6.1.2 The costs of releasing all liens, judgments, and other encumbrances that are to be   released and of recording such releases;      

 

   17         6.1.3 One half of the escrow and recording fees (other than fees for recording the   Deed) and costs due Title Company for its services;      6.1.4 The Grantor tax associated with the Deed;       6.1.5 The cost of a standard coverage ALTA owner’s title insurance policies, without   extended coverage, endorsement or amendment, in the amount of the Purchase   Price, issued in connection with this transaction, whether pursuant to the Title   Commitment or otherwise; and         6.1.6 The cost of the Survey.         6.2 Purchaser's Costs. Purchaser will pay the following costs of closing this transaction:      6.2.1 The fees and disbursements of its counsel, inspecting architect and engineer, if   any;        6.2.2 One half of the escrow and recording fees and costs due Title Company for its   services;        6.2.3 The cost of any loan title insurance policy;        6.2.4 All sales or use taxes relating to the transfer of personal property to Purchaser   and all state and local recordation taxes payable in connection with the conveyance of the Land   and the Improvements (other than the transfer taxes for the Deed, for which Seller is responsible);      6.2.5 The cost of any title insurance in excess of the cost of a standard coverage ALTA   owner’s title insurance policies, without endorsement or amendment, in the   amount of the Purchase Price, issued in connection with this transaction, whether   pursuant to the Title Commitment or otherwise;       6.2.6 The cost to obtain the Updated Survey;       6.2.7 The cost of recordation of the Deed and Assignment of Lease; and      6.2.8 Any other expense(s) incurred by Purchaser or its representative(s) in inspecting   or evaluating the Property or closing this transaction.       6.3 Prorations. Rents and any other amounts payable by Tenant, and, to the extent not   otherwise paid directly by the Tenant under the Tenant Lease, personal property taxes, installment   payments of special assessment liens, vault charges, sewer charges, utility charges and normally prorated   operating expenses actually collected, billed or paid as of the date of Closing shall be prorated as of the   date of Closing and be adjusted against the Purchase Price due at the Closing, provided that within sixty   (60) days after the Closing, Purchaser and Seller will make a further adjustment for such rents, taxes or   charges which may have accrued or been incurred prior to the date of Closing, but not collected or paid at   that date.  All prorations shall be based upon the actual number of days of ownership of the Property.        Seller shall be responsible for all leasing commissions and other leasing costs due and payable   prior to the Closing Date with respect to the Tenant Lease.  Purchaser shall be responsible for all leasing     

 

   18      commissions and other leasing costs attributable to any new leases executed on or after the Closing Date   or the renewal, extension or expansion of any existing lease after the Closing Date to the extent Purchaser   enters into any leasing agreement in which leasing commissions and other leasing costs are payable in   connection with the renewal, extension or expansion of any existing lease after the Closing Date.  Seller   represents and warrants that there are no leasing commissions or other leasing costs due and payable now   or in the future under any agreement to which Seller or any of its affiliates is a party with respect to the   Tenant Lease.  The terms and provisions of this section shall survive Closing hereunder.         6.4 Taxes. To the extent not otherwise paid directly by Tenant under the Tenant Lease,   general real estate taxes and special assessments relating to the Property payable during the year in which   Closing occurs shall be prorated as of the Closing Date.  If Closing shall occur before the actual taxes and   special assessments payable during such year are known, the apportionment of taxes shall be upon the   basis of taxes for the Property payable during the immediately preceding year, provided that, if the taxes   and special assessments payable during the year in which Closing occurs are thereafter determined to be   more or less than the taxes payable during the preceding year (after any appeal of the assessed valuation   thereof is concluded), Seller and Purchaser promptly (but in no event later than thirty (30) days after the   issuance of the tax bill for the year in which Closing occurs, except in the case of an ongoing tax protest)   shall adjust the proration of such taxes and special assessments, and Seller or Purchaser, as the case may   be, shall pay to the other any amount required as a result of such adjustment and this covenant shall not   merge with the Deed delivered hereunder but shall survive the Closing.      6.5 In General. Any other expenses, charges and fees of Closing not otherwise specifically   allocated herein or incurred by a specific party, shall be borne by the parties in accordance with the   general custom and practice in the State and County in which the Property is situated, as applicable, or if   no such custom or practice exists they shall be borne equally between the parties. To the extent that the   Tenant Lease provide for any adjustment of previously paid estimated amounts of real estate tax or   operating expense reimbursements on a date subsequent to the Closing Date, Seller shall be entitled to   receive, or shall be responsible to pay, as the case may be (when such amounts are actually received or   payable by Purchaser), Seller’s pro rata share of any such adjusted amounts that are applicable to periods   ending prior to the Closing Date.  After Closing, Seller agrees to reasonably cooperate with Purchaser in   providing Purchaser access to Seller’s books and records relating to such adjustments under the Tenant   Lease so that Purchaser may adequately perform such adjustments.      6.6 Purpose and Intent. Except as expressly provided herein, the purpose and intent as to the   provisions of prorations and apportionments set forth in this Section 6 and elsewhere in this Agreement is   that Seller shall bear all expenses of ownership and operation of the Property and shall receive all income   therefrom accruing through 11:59 p.m. at the end of the day preceding the Closing and Purchaser shall   bear all such expenses and receive all such income accruing thereafter.      7. Damage, Destruction or Condemnation.      7.1 Material Event.  If, prior to Closing, any portion of the Property is destroyed or taken   under power of eminent domain which event (i) gives Tenant the right to terminate the Tenant Lease or   abate rent under the Tenant Lease temporarily or permanently, (ii) results in proceeds from condemnation   awards or casualty insurance policies that are insufficient to rebuild the improvements on the Property in   the manner which the improvements existed prior to such taking or casualty or (iii) result in a loss of   parking at the Property, Purchaser may elect to terminate this Agreement by giving written notice of its   election to Seller within ten (10) days after receiving notice from Seller of such destruction or taking.  If   Purchaser does not give such written notice within such ten (10) day period, this transaction shall be   consummated on the date and at the Purchase Price provided for in Section 2, and Seller will assign to   Purchaser (i) the insurance proceeds of any insurance policy(ies) payable to Seller and pay to Purchaser     

 

   19      the amount of any deductible under Seller’s insurance policy, if any, or (ii) Seller’s portion of any   condemnation award.      7.2 Immaterial Event.  Except upon the occurrence of a material event as set forth in Section   7.1 above, Purchaser shall close this transaction on the date and at the Purchase Price agreed upon in   Section 2, and Seller will assign to Purchaser (i) the insurance proceeds of any insurance policies payable   to Seller and pay to Purchaser the amount of any deductible under Seller’s insurance policy, if any, or (ii)   Seller’s portion of any condemnation award.        7.3 Termination and Return of Deposit.  If Purchaser elects to terminate this Agreement   pursuant to this Section 7, and if Purchaser is not, on the date of such election, in default under this   Agreement, Seller shall promptly direct the Title Company to return the Deposit to Purchaser, and neither   party shall have any further liability hereunder except for the obligations of Purchaser which survive the   termination of this Agreement.        8. Notices.       All notices or other communications hereunder shall be in writing and shall be deemed duly given   if addressed and delivered to the respective parties' addresses, as set forth below: (i) in person; (ii) by   Federal Express or similar overnight carrier service; (iii) mailed by certified or registered mail, return   receipt requested, postage prepaid or (iv) by facsimile transmission (with electronic confirmation)   followed by a notice set forth in (i), (ii) or (iii) above.  Such notices shall be deemed received upon the   earlier of receipt or, if mailed by certified or registered mail, three (3) days after such mailing.  Seller and   Purchaser may from time to time by written notice to the other designate another address for receipt of   future notices.      If to Seller:     c/o USAA Real Estate Company   9830 Colonnade Boulevard, Suite 600   San Antonio, TX 78230-2239   Attention: John Post   Telephone: (210) 641-8456   Facsimile: (210) 641-8463   Email: john.post@usrealco.com      with a copy to:      c/o USAA Real Estate Company   9830 Colonnade Boulevard, Suite 600   San Antonio, TX 78230-2239   Attention: Steven Waters, Esq.    Telephone: (210) 641-8414   Facsimile: (210) 579-6889   Email: steve.waters@usrealco.com            with a copy to:            Golden Steves Cohen & Gordon LLP         300 Convent Street, Suite 2600         San Antonio, Texas 78205         Attention: Andrew S. Cohen         Telephone: (210) 745-3745     

 

   20            Facsimile: (210) 745-3737         Email:  acohen@goldensteves.com      If to Purchaser:    c/o Cole Real Estate Investments, Inc.        2325 E. Camelback Road, Suite 1100   Phoenix, AZ  85016   Attention:  Daniel Haug                     Vice President, Legal Services   Telephone:  (602) 952-4488   Facsimile:   (480) 449-7012        Email:  dan.haug@colereit.com           with a copy to:            Morris, Manning & Martin, LLP        1600 Atlanta Financial Center        3343 Peachtree Road, N.E.        Atlanta, GA 30326        Attention:  Marc R. Bulson, Esq.        Telephone:  (404) 504-7783        Facsimile:  (404) 365-9532        Email:  mbulson@mmmlaw.com         Telephone and e-mail addresses are for informational purposes only.  Effective notice will be deemed   given only as provided above.      9. Closing and Escrow.      9.1 Conditions Precedent to Closing.      9.1.1 Purchaser's Conditions to Closing.  The obligation of Purchaser to purchase the   Property from Seller, and to perform the obligations required to be performed by Purchaser at the   Closing, are subject to each of the following conditions:      (i) Closing Documents.  Seller shall have tendered at Closing (or prior to   Closing as applicable) all Closing Documents set forth in Section 9.3 to which Seller is a   party.      (ii) Compliance with Agreement.  Seller shall have performed and complied   in all material respects with its covenants and obligations under this Agreement such that   any default or failure of performance of Seller as to which Purchaser has delivered   written notice to Seller shall be cured in all material respects prior to or at Closing.      (iii) Title Policy.  The Title Company shall be committed to issue the title   policy in accordance with Section 3.2.      9.1.2 Seller's Conditions to Closing.  The obligation of Seller to sell the Property to   Purchaser, and to perform the obligations required to be performed by Seller at the Closing, are   subject to each of the following conditions:        

 

   21      (i) Closing Documents.  Purchaser shall have tendered at Closing all   Closing Documents to which Purchaser is a party.      (ii) Compliance with Agreement.  Purchaser shall have performed and   complied in all material respects with its covenants and obligations under this Agreement   such that any default or failure of performance of Purchaser as to which Seller has   delivered written notice to Purchaser shall be cured in all material respects prior to or at   Closing.      9.1.3 Failure of Condition.  If any of the conditions precedent to Closing have not   occurred or been satisfied within the time periods and in accordance with the terms set forth   herein, then the party whose conditions to Closing have not been satisfied shall have the right to   terminate this Agreement by written notice to the other party, whereupon neither party shall have   any further rights or obligations hereunder and the Deposit shall be returned to Purchaser by the   Title Company (other than the obligations of either party that expressly survive termination of   this Agreement), unless the failure of condition is due to a default by one of the parties, in which   the non-defaulting party shall have those rights and remedies set forth in Section 10 hereof.  If the   transaction contemplated by this Agreement closes, the parties shall be deemed to have waived   any and all unmet or unsatisfied conditions, subject to Section 5.1.5 above.        9.2 Escrow Instructions. Upon execution of this Agreement, the parties shall deliver an   executed counterpart of this Agreement to the Title Company to serve as the instructions to the Title   Company as the escrow holder for consummation of the transaction contemplated herein. Seller and   Purchaser agree to execute such additional and supplementary escrow instructions as may be appropriate   to enable the Title Company to comply with the terms of this Agreement; provided, however, that in the   event of any conflict between the provisions of this Agreement and any supplementary escrow   instructions, the terms of the Agreement shall prevail.      9.3 Seller's Deliveries. Unless otherwise specified, Seller shall deliver either at the Closing or   by making available at the Property, as appropriate, the following original documents (the “Closing   Documents”), each executed and, if required, acknowledged:        9.3.1 A special warranty deed to the Land, in the form attached hereto as Exhibit   9.3.1, subject only to the Permitted Encumbrances (the “Deed”);      9.3.2 A bill of sale for the Property in the form attached hereto as Exhibit 9.3.2   conveying the Personal Property;        9.3.3 An original, or to the extent an original is not available, a copy of the Tenant   Lease and Contracts;        9.3.4 An assignment and assumption agreement of the Tenant Lease and Warranties in   the form attached hereto as Exhibit 9.3.4 (the “Assignment and Assumption of Lease”);        9.3.5 An assignment of contracts assigning Seller’s right, title and interest in, to and   under the Contracts and the Approvals in the form attached hereto as Exhibit 9.3.5 (the   “Assignment and Assumption of Contracts”);        9.3.6 All books and records at the Property held by or for the account of Seller,   including without limitation, plans and specifications, as available;        

 

   22        9.3.7 An affidavit pursuant to the Foreign Investment and Real Property Tax Act in the   form attached hereto as Exhibit 9.3.7;        9.3.8 An incumbency affidavit in the form attached hereto as Exhibit 9.3.8;         9.3.9  The Tenant Estoppel in accordance with the terms of Section 3.7 (unless waived   by Purchaser pursuant to the terms of Section 3.7);         9.3.10 A tenant notice letter for the Property in the form attached hereto as Exhibit   9.3.10; and        9.3.11 Such affidavits, indemnities and other deliveries as are reasonably required by   the Title Company to deliver the title policy, executed by Seller.      9.4 Purchaser's Deliveries. At the Closing, Purchaser shall (i) deposit with the Title Company   the Purchase Price; and (ii) execute the agreements referred to in Sections 9.3.4 and 9.3.5.       9.5 Insurance. Seller shall terminate its policies of insurance as of noon on the date of   Closing, and Purchaser shall be responsible for obtaining its own insurance thereafter.      9.6 Possession. Purchaser shall be entitled to possession of the Property upon conclusion of   the Closing, subject to the Tenant Lease and the Permitted Encumbrances.      9.7 Post-Closing Collections. Purchaser shall use its best efforts during the six (6) month   period immediately following Closing to collect and promptly remit to Seller rents or other amounts due   Seller for the period prior to Closing. Purchaser shall apply such rents or other amounts received, first for   the account of Purchaser for amounts currently due to Purchaser; second, for the account of Purchaser for   delinquent amounts due to Purchaser, and third, to Seller for any and all amounts due to Seller for periods   prior to Closing; and the balance to be retained by Purchaser.         

 

   23      10. Default; Failure of Condition.      10.1 PURCHASER DEFAULT. IF PURCHASER SHALL BECOME IN BREACH OF   OR DEFAULT UNDER THIS AGREEMENT AND THE BREACH OR DEFAULT CONTINUES   BEYOND THE EXPIRATION OF THE CURE PERIOD, IF ANY, PROVIDED IN SECTION 11.6   HEREOF, SELLER SHALL ELECT AS ITS SOLE REMEDY HEREUNDER TO (A)   TERMINATE THIS AGREEMENT WHEREIN THE DEPOSIT SHALL BE RETAINED BY   SELLER AS LIQUIDATED DAMAGES, AND BOTH PARTIES SHALL BE RELIEVED OF   AND RELEASED FROM ANY FURTHER LIABILITY HEREUNDER EXCEPT FOR THE   INDEMNIFICATION OBLIGATIONS OF PURCHASER PURSUANT TO SECTION 3.1.7   HEREOF AND THE PAYMENT OF LEGAL FEES IN CONNECTION WITH ANY   ENFORCEMENT OF SUCH INDEMNIFICATION OBLIGATIONS PURSUANT TO SECTION   11.9 HEREOF; OR (B) WAIVE THE DEFAULT, PRIOR TO OR AT THE CLOSING, AND   PROCEED TO CLOSE THE TRANSACTION CONTEMPLATED HEREBY IN ACCORDANCE   WITH THE REMAINING TERMS HEREOF. SELLER AND PURCHASER AGREE THAT THE   DEPOSIT IS A FAIR AND REASONABLE AMOUNT TO BE RETAINED BY SELLER AS   AGREED AND LIQUIDATED DAMAGES IN LIGHT OF SELLER'S REMOVAL OF THE   PROPERTY FROM THE MARKET AND THE COSTS INCURRED BY SELLER AND SHALL   NOT CONSTITUTE A PENALTY OR A FORFEITURE.      /s/ TW__________________    /s/ JP_________________   Purchaser's       Seller's Initials      10.2 SELLER DEFAULT. IF SELLER SHALL BECOME IN BREACH OR DEFAULT   UNDER THIS AGREEMENT AND THE BREACH OR DEFAULT CONTINUES BEYOND THE   EXPIRATION OF THE CURE PERIOD, IF ANY, PROVIDED IN SECTION 11.6 HEREOF,   PURCHASER MAY, AS PURCHASER’S SOLE OPTION, ELECT EITHER TO:  (I) BY   WRITTEN NOTICE TO SELLER AND THE TITLE COMPANY, CANCEL THIS   AGREEMENT WHEREUPON THE DEPOSIT SHALL BE PAID IMMEDIATELY BY THE   TITLE COMPANY TO PURCHASER, SELLER SHALL PROMPTLY REIMBURSE TO   PURCHASER ITS REASONABLE OUT-OF-POCKET AND THIRD-PARTY PROPERTY   DILIGENCE EXPENSES IN AN AMOUNT NOT TO EXCEED $65,000.00 AND, EXCEPT AS   OTHERWISE PROVIDED IN THIS AGREEMENT, NEITHER OF THE PARTIES SHALL   HAVE ANY FURTHER LIABILITY OR OBLIGATION HEREUNDER; OR, (II) EXTEND THE   DATE SCHEDULED FOR CLOSING FOR SUCH REASONABLE PERIOD OF TIME AS MAY   BE REQUIRED TO PERMIT SELLER TO CURE OR REMEDY SUCH BREACH IN   ACCORDANCE WITH SECTION 11.6; (III) WAIVE, PRIOR TO OR AT THE CLOSING, THE   APPLICABLE OBJECTION OR CONDITION AND PROCEED TO CLOSE THE   TRANSACTION CONTEMPLATED HEREBY IN ACCORDANCE WITH THE REMAINING   TERMS HEREOF; OR (IV) SEEK SPECIFIC PERFORMANCE OF SELLER’S OBLIGATIONS   HEREUNDER.  NOTWITHSTANDING THE FOREGOING, IF SPECIFIC PERFORMANCE IS   UNAVAILABLE AS A REMEDY TO PURCHASER BECAUSE OF SELLER’S AFFIRMATIVE   ACT OR INTENTIONAL OMISSION, PURCHASER SHALL BE ENTITLED TO PURSUE ALL   RIGHTS AND REMEDIES AVAILABLE AT LAW OR IN EQUITY; PROVIDED, IN ANY SUIT   FOR DAMAGES, SELLER SHALL NOT BE LIABLE TO PURCHASER FOR ANY SPECIAL   OR CONSEQUENTIAL DAMAGES. NOTWITHSTANDING THE FOREGOING, ANY   CONFLICT BETWEEN THE PROVISIONS OF THIS SECTION AND SECTION 5.1.5 WITH   REGARD TO A BREACH OF SELLER’S REPRESENTATIONS OR WARRANTIES SHALL BE   RESOLVED BY THE PROVISIONS OF SECTION 5.1.5.        

 

   24      10.3 Waiver of Trial by Jury. The respective parties hereto shall and hereby do waive trial by   jury in any action, proceeding or counterclaim brought by either of the parties hereto against the other on   any matters whatsoever arising out of or in any way connected with this Agreement, or for the   enforcement of any remedy under any statute, emergency or otherwise.      10.4 Limited Liability. The obligations of Seller are binding only on Seller’s interest in the   Property and any other assets of Seller and shall not be personally binding upon, nor shall any resort be   had to, the private properties of any of the partners, officers, directors, shareholders or beneficiaries of   Seller, or of any partners, officers, directors, shareholders or beneficiaries of any partners of Seller, or of   any of Seller's employees or agents. All documents executed by Seller shall be deemed to contain (even if   not expressly stated) the foregoing exculpation.      11. Miscellaneous.      11.1 Entire Agreement. This Agreement, together with the Exhibits attached hereto, all of   which are incorporated by reference, is the entire agreement between the parties with respect to the   subject matter hereof, and no alteration, modification or interpretation hereof shall be binding unless in   writing and signed by both parties.       11.2 Severability. If any provision of this Agreement or application to any party or   circumstances shall be determined by any court of competent jurisdiction to be invalid and unenforceable   to any extent, the remainder of this Agreement or the application of such provision to such person or   circumstances, other than those as to which it is so determined invalid or unenforceable, shall not be   affected thereby, and each provision hereof shall be valid and shall be enforced to the fullest extent   permitted by law.      11.3 Applicable Law. This Agreement shall be construed and enforced in accordance with the   laws of the State in which the Property is located.      11.4 Assignability. This Agreement may not be assigned by Seller without the prior written   consent of Purchaser which consent shall not be unreasonably withheld.  Purchaser may assign its rights   under this Agreement to an affiliate of Purchaser without seeking or obtaining Seller’s consent.  Such   assignment shall not become effective until the assignee executes an instrument whereby such assignee   expressly assumes each of the obligations of Purchaser under this Agreement, including specifically,   without limitation, all obligations concerning the Deposit.  Purchaser shall provide Seller a copy of any   such proposed assignment to an affiliate of Purchaser prior to Closing.  No assignment shall release or   otherwise relieve Purchaser from any obligations hereunder; provided, however, with respect to any   assignment, if Closing occurs the assigning party (but not the assignee) shall be relieved of all its   obligations arising under this Agreement before, on and after Closing provided, any such assignee shall   be deemed to have made any and all representations and warranties made by Purchaser hereunder, as if   the assignee were the original signatory hereto.        11.5 Successors Bound. This Agreement shall be binding upon and inure to the benefit of   Purchaser and Seller and their respective successors and permitted assigns.      11.6 Breach. Should either party be in breach of or default under or otherwise fail to comply   with any of the terms of this Agreement, the complying party shall have the option to cancel this   Agreement upon twenty (20) days written notice to the other party and such other party’s failure to cure   such breach within such twenty (20) day period. The date of Closing shall be extended to the extent   necessary to afford the defaulting party the full twenty-day period within which to cure such breach,   default or failure; provided, however, that the failure or refusal by a party to perform on the scheduled     

 

   25      date of Closing (except in respect of a Pending Default by the other party) shall be deemed to be an   immediate default without the necessity of notice or opportunity to cure; and provided further, that if the   date of Closing shall have been once extended as a result of default by a party, such party shall not be   entitled to any further notice or cure rights with respect to that or any other default. For purposes of this   Section 11.6, a "Pending Default" shall be a default for which (i) written notice was given by the non-   defaulting party prior to the Closing, and (ii) the cure period extends beyond the scheduled date of   Closing.       11.7 No Public Disclosure. Neither Seller nor Purchaser will release or cause or permit to be   released any press notices, or publicity (oral or written) or advertising promotion relating to, or otherwise   announce or disclose or cause or permit to be announced or disclosed, in any manner whatsoever, the   terms, conditions or substance of this Agreement without first obtaining the written consent of the other   party. The foregoing shall not preclude either party from discussing the substance or any relevant details   of such transactions with any of its attorneys, accountants, professional consultants, lenders, partners,   investors, or any prospective lender, partner or investor, as the case may be, or prevent either party hereto   from complying with laws, rules, regulations and court orders, including without limitation, governmental   regulatory, disclosure, tax and reporting requirements. Purchaser and Seller may disclose this transaction   or any aspect or information related to this transaction or disclosure or other notice as its attorneys deem   is reasonably necessary to comply with applicable law. In addition to any other remedies available to a   party, each party shall have the right to seek equitable relief, including without limitation, injunctive relief   or specific performance, against the other party in order to enforce the provisions of this Section 11.7.      11.8 Captions. The captions in this Agreement are inserted only as a matter of convenience   and for reference and in no way define, limit or describe the scope of this Agreement or the scope or   content of any of its provisions.      11.9 Attorneys' Fees. In the event of any litigation arising out of this Agreement, the   prevailing party shall be entitled to reasonable attorneys' fees and costs.      11.10 No Partnership. Nothing contained in this Agreement shall be construed to create a   partnership or joint venture between the parties or their successors in interest.      11.11 Time of Essence. Time is of the essence in this Agreement.      11.12 Counterparts. This Agreement may be executed and delivered in any number of   counterparts, each of which so executed and delivered shall be deemed to be an original and all of which   shall constitute one and the same instrument. Signatures hereon sent by facsimile or electronic mail may   be treated as original signatures, and any party so executing this Agreement agrees to deliver to the other   party “paper” originals of said signatures within two (2) business days after such transmission by   facsimile or electronic mail.      11.13 Recordation. Purchaser and Seller agree not to record this Agreement or any   memorandum hereof.      11.14 Proper Execution. The submission by Seller to Purchaser of this Agreement in unsigned   form shall be deemed to be a submission solely for Purchaser's consideration and not for acceptance and   execution. Such submission shall have no binding force and effect, shall not constitute an option, and   shall not confer any rights upon Purchaser or impose any obligations upon Seller irrespective of any   reliance thereon, change of position or partial performance. The submission by Seller of this Agreement   for execution by Purchaser and the actual execution and delivery thereof by Purchaser to Seller shall,   together with the Deposit, similarly have no binding force and effect on Seller unless and until Seller shall     

 

   26      have executed this Agreement and a fully executed counterpart thereof, together with the Deposit, shall   have been delivered to the Title Company.       11.15 Right of First Offer; Right of First Refusal. The parties acknowledge that the Property is   subject to (i) a right of first offer and (ii) a right of first refusal, in favor of Tenant as more particularly   described in the Tenant Lease. It shall be a condition precedent to Seller’s obligation to convey the   Property in accordance with this Agreement that Tenant shall have waived such rights or that Seller shall   have provided evidence that such rights have been deemed to have been waived by Tenant.  Said waivers   or such evidence (the “Waivers”) shall be in a form reasonably acceptable to Seller, Purchaser and the   Title Company (such that the Title Company, in accepting the Waiver, is willing to issue the Title Policy   not subject to such right of first offer or such right of first refusal in connection with the sale of the   Property to Purchaser).  Should Tenant exercise either its right of first offer or its right of first refusal, this   Agreement shall terminate, the Deposit shall be returned to Purchaser and Seller shall reimburse   Purchaser for its actual, out-of-pocket expenses relating to its investigation of the Property, not to exceed   $65,000.00. If Seller has not provided the required Waivers or received an election by Tenant to exercise   either such right, on or before two (2) business days prior to the Closing Date, then Seller shall have the   right to delay the Closing for up to thirty (30) days upon written notice to Purchaser delivered not less   than two (2) business days prior to the scheduled Closing Date; provided that Closing shall occur within   three (3) business days following delivery of the final Waivers and the Tenant Estoppel shall not be dated   more than 45 days prior to the Closing Date, as extended. If the foregoing requisite Waivers, Tenant   Estoppel and/or exercise of rights of first offer or first refusal are not delivered to Purchaser at least two   (2) business days prior to the Closing Date, as may have been delayed as provided above, then   Purchaser’s sole right with respect thereto shall be to elect to terminate this Agreement and the Deposit   returned to Purchaser, and Seller shall reimburse Purchaser for its actual, out-of-pocket expenses relating   to its investigation of the Property, not to exceed $65,000.00.      11.16 Committee Approval.  Intentionally omitted.      11.17 Effective Date Conditioned Upon Deposit. This Agreement shall become effective only   upon, and all time periods not otherwise expressly set forth shall commence to run, from the Effective   Date, only if the Deposit has been made.      11.18 Time to Execute and Deliver.  This Agreement shall be void if one fully executed copy is   not received by Seller, along with confirmation that this Agreement has been received by the Title   Company, on or before 9:00 p.m. C.S.T. on July 30, 2013 and that the Deposit has been received by the   Title Company on or before 5:00 p.m. C.S.T. on July 31, 2013.      11.19 Term Sheet.  The Term Sheet attached to this Agreement and incorporated by reference   herein sets forth the basic terms of the transaction for the benefit and convenience of the parties.    Notwithstanding the foregoing, to the extent of any conflict between the terms and provisions of this   Term Sheet and the Agreement, the terms and provisions of the Agreement shall govern and control.         11.20 No Recording. Neither this Agreement nor any memorandum or short form hereof shall   be recorded or filed in any public land or other public records of any jurisdiction, by either party and any   attempt to do so may be treated by the other party as a breach of this Agreement.       11.21 1031 Exchange. Either party may consummate the purchase and sale of the Property as   part of a so-called like kind exchange (the “Exchange”) pursuant to § 1031 of the Internal Revenue Code   of 1986, as amended (the “Code”), provided that: (i) the Closing shall not be delayed or affected by   reason of the Exchange nor shall the consummation or accomplishment of the Exchange be a condition   precedent or condition subsequent to either party’s obligations under this Agreement; (ii) the exchanging     

 

   27      party shall effect the Exchange through an assignment of this Agreement, or its rights under this   Agreement, to a qualified intermediary; (iii) the non-exchanging party shall not be required to take an   assignment of the Agreement for the relinquished property or be required to acquire or hold title to any   real property for purposes of consummating the Exchange; and (iv) the exchanging party shall pay any   additional costs that would not otherwise have been incurred by Purchaser or Seller had the exchanging   party not consummated this transaction through the Exchange. The non-exchanging party shall not, by   this Agreement or acquiescence to the Exchange, have its rights under this Agreement affected or   diminished in any manner or be responsible for compliance with or have any liability in connection with   or be deemed to have warranted that the Exchange in fact complies with § 1031 of the Code.      11.22 Calculation of Time Periods.  Unless otherwise specified, in computing any   period of time described herein, the date 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 for national banks in Phoenix, Arizona in which event   the period shall run until the end of the next day which is neither a Saturday, Sunday or legal holiday.    The last day of any period of time described herein shall be deemed to end at 5:00 p.m. Phoenix, Arizona   time.      11.23 Simultaneous Closing.  The transaction contemplated by this Agreement shall be   subject and contingent upon US Real Estate Limited Partnership (an affiliate of Seller) (“USRELP”) and   Purchaser simultaneously closing the transaction contemplated by that certain Purchase and Sale   Agreement dated of even date herewith between USRELP and Purchaser, which contract relates to the   purchase of USRELP’s interest in certain land and improvements commonly known as the Murfreesboro   Fulfillment Center, located at 2020 Joe B. Jackson Parkway, in the City of Murfreesboro, Rutherford   County, Tennessee (the “Related Transaction”), to the extent provide below. If USRELP is ready,   willing and able to close the Related Transaction and Purchaser is obligated pursuant to the Related   Transaction to close but fails to so close the Related Transaction simultaneously with the transaction   contemplated by this Agreement, then Seller shall elect as its sole remedy hereunder to (a) terminate this   Agreement wherein the Deposit shall be retained by Seller as liquidated damages, and both parties shall   be relieved of and released from any further liability hereunder except for the indemnification obligations   of Purchaser pursuant to Section 3.1.7 hereof and the payment of legal fees in connection with any   enforcement of such indemnification obligations pursuant to Section 11.9 hereof; or (b) waive the   simultaneous close condition and proceed to close the transaction contemplated hereby in accordance   with the remaining terms hereof.  If either (1) Purchaser is not obligated pursuant to the Related   Transaction to close, or (2) Purchaser is ready, willing and able to close the Related Transaction and   USRELP fails to so close the Related Transaction simultaneously with the transaction contemplated by   this Agreement, then Purchaser shall elect as its sole remedy hereunder to (a) terminate this Agreement   whereupon the Deposit shall be returned to Purchaser, Seller shall promptly reimburse to Purchaser its   reasonable out-of-pocket and third-party property diligence expenses in an amount not to exceed   $50,000.00, and both parties shall be relieved of and released from any further liability hereunder except   for the indemnification obligations of Purchaser pursuant to Section 3.1.7 hereof and the payment of legal   fees in connection with any enforcement of such indemnification obligations pursuant to Section 11.9   hereof; or (b) waive the simultaneous close condition and proceed to close the transaction contemplated   hereby in accordance with the remaining terms hereof.       11.24 Guaranty.  USAA REAL ESTATE COMPANY, a Delaware corporation   (“Realco”) joins this Agreement only for the purpose of granting the following guaranty:  by execution of   this Agreement, Realco, Seller’s affiliate, for good and valuable consideration, the receipt of which is   hereby acknowledged, agrees to and does hereby unconditionally and irrevocably guaranty, (i) Seller’s   post-closing obligations and liabilities under this Agreement, (ii) Seller’s indemnification obligations set     

 

   28      forth in the Assignment and Assumption of Lease, and (iii) Seller’s indemnification obligations set forth   in the Assignment and Assumption of Contracts.      11.25 On-Going Warranty Work.  Seller shall repair or cause to be repaired, at no cost   to Purchaser, the items identified on Exhibit 11.25 attached hereto (the “Repairs”), subject to Purchaser’s   reasonable approval.  Except for the Warranty walk repair described in item (b) of Exhibit 11.25, Seller   acknowledges and agrees that any amounts expended in connection with completing the Repairs shall not   reduce or otherwise be subject to the Claims Ceiling set forth in Section 5.1.4 herein.  After Closing,   Seller, its contractor and their respective agents and employees shall have reasonable access to the Land   (subject to the rights of Tenant under the Tenant Lease) as may be necessary to complete the Repairs.    Seller covenants to complete all Repairs on or before December 31, 2013.  The provisions of this Section   11.25 shall survive Closing.      11.26    Post Closing Agreement.  After Closing, Seller agrees to use commercially   reasonable efforts to deliver the following documentation to Purchaser, at no cost to Purchaser: (i) a copy   of the Engineer’s Certificate required in that certain Storm Water Management System/Best Management   Practice (BMP)/Easement Agreement dated January 30, 2012 (“SWMS Agreement”) certifying that the   drainage and detention facilities were constructed in accordance with the Approved Plans (as such term is   defined in that certain SWMS Agreement); and (ii) evidence reasonably satisfactory to Purchaser that any   road improvements which may have been constructed by Seller in connection with that Deed of Easement   dated December 21, 2011 have been removed and planted with grass as required in Section 1.01(v)   therein.  The terms and provisions of this Section 11.26 shall survive Closing.                  [Signatures Appear on Following Page]         

 

   29      IN WITNESS WHEREOF, Purchaser and Seller have executed this Agreement on the date set   forth below, effective as of the date set forth above.         SELLER:     US RIO, LP,    a Delaware limited partnership       By:   US Real Estate Limited Partnership,    a Texas limited partnership, its general partner             By: USAA Real Estate Company,    a Delaware corporation,    its general partner         By:  /s/ John Post      Name:   John Post      Title:   Managing Director                  Date:  July 30, 2013                GUARANTOR:    USAA REAL ESTATE COMPANY,   a Delaware corporation         By: /s/ John Post       Name: John Post       Title: Managing Director         Date: July 30, 2013                PURCHASER:     COLE CCIT ACQUISITIONS, LLC,   a Delaware limited liability company      By:  Cole Corporate Income Advisors, LLC,     a Delaware limited liability company,     its Manager         By: /s/ Todd J. Weiss       Todd J. Weiss, Senior Vice President      Date: July 30, 2013                  

 

   30      An original, fully executed copy of this Agreement has been received by the Title Company's agent this   30th day of July, 2013, and by execution hereof the Title Company's agent hereby covenants and agrees   to be bound by the terms of this Agreement.       FIRST AMERICAN TITLE INSURANCE COMPANY         By: /s/ Brandon Grajewski      Name: Brandon Grajewski      Title: Authorized Agent            Receipt of the Deposit of $812,500.00 acknowledged this 31st day of July, 2013.         FIRST AMERICAN TITLE INSURANCE COMPANY          By: /s/ Brandon Grajewski      Name: Brandon Grajewski      Title: Authorized Agent            Receipt of the Independent Consideration of $100 acknowledged this 31st day of July, 2013.         FIRST AMERICAN TITLE INSURANCE COMPANY         By: /s/ Brandon Grajewski      Name: Brandon Grajewski      Title: Authorized Agentexhibit102purchaseandsal

   Exhibit 10.2                  PURCHASE AND SALE AGREEMENT      SELLER:         US REAL ESTATE LIMITED PARTNERSHIP,   a Texas limited partnership         PURCHASER:      COLE CCIT ACQUISITIONS, LLC,    a Delaware limited liability company         PROPERTY:      The Amazon.Com Distribution Facility commonly known as Murfreesboro Amazon Fulfillment Center,   2020 Joe B. Jackson Parkway, Murfreesboro, Rutherford County, Tennessee         July 30, 2013        

 

i   TABLE OF CONTENTS      1. The Property .......................................................................................................................................... 1   1.1 Description .................................................................................................................................... 1   1.2 As-Is Purchase .............................................................................................................................. 2   1.3 Agreement to Convey ................................................................................................................... 3   2. Price and Payment ................................................................................................................................. 3   2.1 Purchase Price ............................................................................................................................... 3   2.2 Earnest Money and Independent Consideration ........................................................................... 4   2.3 Closing .......................................................................................................................................... 4   3. Inspections and Approvals .................................................................................................................... 5   3.1 Inspections .................................................................................................................................... 5   3.2 Title and Survey ............................................................................................................................ 7   3.3 Contracts ....................................................................................................................................... 8   3.4 Permitted Encumbrances............................................................................................................... 8   3.5 Miscellaneous Property Information ............................................................................................. 9   3.6 Purchaser's Right to Terminate ..................................................................................................... 9   3.7 Tenant Estoppels ........................................................................................................................... 9   4. Prior to Closing ................................................................................................................................... 10   4.1 Insurance ..................................................................................................................................... 10   4.2 Maintenance ................................................................................................................................ 10   4.3 New Contracts ............................................................................................................................. 10   4.4 New Leases and Amendments .................................................................................................... 10   5. Representations and Warranties .......................................................................................................... 11   5.1 By Seller...................................................................................................................................... 11   5.2 By Purchaser ............................................................................................................................... 16   5.3 Broker ......................................................................................................................................... 17   6. Costs and Prorations ........................................................................................................................... 18   6.1 Seller's Costs ............................................................................................................................... 18   6.2 Purchaser's Costs ......................................................................................................................... 18   6.3 Prorations .................................................................................................................................... 19   6.4 Taxes ........................................................................................................................................... 19   6.5 In General .................................................................................................................................... 19   6.6 Purpose and Intent ....................................................................................................................... 20   7. Damage, Destruction or Condemnation .............................................................................................. 20   7.1 Material Event ............................................................................................................................. 20   7.2 Immaterial Event ......................................................................................................................... 20   7.3 Termination and Return of Deposit ............................................................................................ 20   8. Notices ................................................................................................................................................ 20   9. Closing and Escrow ............................................................................................................................ 22   9.1 Conditions Precedent to Closing ................................................................................................. 22   9.2 Escrow Instructions ..................................................................................................................... 23   9.3 Seller's Deliveries........................................................................................................................ 23   9.4 Purchaser's Deliveries ................................................................................................................. 24   9.5 Insurance ..................................................................................................................................... 24   9.6 Possession ................................................................................................................................... 24   9.7 Post-Closing Collections ............................................................................................................. 24   10. Default; Failure of Condition .......................................................................................................... 24   10.1 Purchaser Default ........................................................................................................................ 24   10.2 Seller Default .............................................................................................................................. 24   10.3 Waiver of Trial by Jury ............................................................................................................... 25     

 

ii   10.4 Limited Liability ......................................................................................................................... 25   11. Miscellaneous ................................................................................................................................. 25   11.1 Entire Agreement ........................................................................................................................ 25   11.2 Severability ................................................................................................................................. 25   11.3 Applicable Law ........................................................................................................................... 26   11.4 Assignability ............................................................................................................................... 26   11.5 Successors Bound ....................................................................................................................... 26   11.6 Breach ......................................................................................................................................... 26   11.7 No Public Disclosure .................................................................................................................. 26   11.8 Captions ...................................................................................................................................... 27   11.9 Attorneys' Fees ............................................................................................................................ 27   11.10 No Partnership ........................................................................................................................ 27   11.11 Time of Essence ...................................................................................................................... 27   11.12 Counterparts ............................................................................................................................ 27   11.13 Recordation ............................................................................................................................. 27   11.14 Proper Execution ..................................................................................................................... 27   11.15 Right of First Offer; Right of First Refusal ............................................................................. 27   11.16 Committee Approval ............................................................................................................... 28   11.17 Effective Date Conditioned Upon Deposit ............................................................................. 28   11.18 Time to Execute and Deliver .................................................................................................. 28   11.19 Term Sheet .............................................................................................................................. 28   11.20 No Recording .......................................................................................................................... 28   11.21 1031 Exchange ........................................................................................................................ 28   11.22 Calculation of Time Periods ................................................................................................... 28   11.23 Simultaneous Closing...................................................................................30   11.24 On-Going Warranty Work..............................................................................30    11.25 Economic Development Incentives...................................................................30       11.26 Post-Closing Agreement...............................................................................30     

 

iii      LIST OF EXHIBITS   Exhibit 1.1.1             Legal Description   Exhibit 1.1.6 List of Contracts as of the Effective Date   Exhibit 3.5 Miscellaneous Property Information   Exhibit 3.7 Form of Master Lessor Estoppel Certificate   Exhibit 5.1.3 Seller's Disclosure Statement   Exhibit 5.1.3(ii) Environmental Reports and Documents   Exhibit 9.3.2 Form of Bill of Sale   Exhibit 9.3.4(A)  Form of Assignment of Lease and Warranties   Exhibit 9.3.4(B) Form of Assignment of Master Lease   Exhibit 9.3.5 Form of Assignment and Assumption of Contracts    Exhibit 9.3.7 Affidavit Pursuant to Foreign Investment and Real   Property Tax Act   Exhibit 9.3.8 Incumbency Affidavit   Exhibit 9.3.10   Exhibit 11.24   Form of Tenant Notice Letter   Schedule of Repairs               

 

iv      TERM SHEET*         SELLER:       US Real Estate Limited Partnership   NOTICE ADDRESS: Section 8 9830 Colonnade Boulevard, Suite 600   San Antonio, TX 78230-2239   Attention: John Post   Telephone: (210) 641-8456   Facsimile: (210) 641-8463   E-mail: john.post@usrealco.com      With a copy to:      USAA Real Estate Company   9830 Colonnade Boulevard, Suite 600   San Antonio, TX 78230-2239   Attention: Stephen Waters, Esq.    Telephone: (210) 641-8414   Facsimile: (210) 579-6889   E-mail: steve.waters@usrealco.com      With a copy to:      Golden Steves Cohen & Gordon LLP   300 Convent Street, Suite 2600   San Antonio, Texas 78205   Attention: Andy Cohen   Telephone (210) 745-3745   Facsimile: (210) 745-3737   E-mail: acohen@goldensteves.com      PURCHASER:       Cole CCIT Acquisitions, LLC      NOTICE ADDRESS: Section 8 c/o Cole Real Estate Investments, Inc.   2325 E. Camelback Road, Suite 1100   Phoenix, AZ  85016   Attn:  Daniel Haug              Vice President, Legal Services   Telephone:  (602) 952-4488   Facsimile:   (480) 449-7012   E-mail:  dan.haug@colereit.com           

 

v        With a copy to:      Morris, Manning & Martin, LLP   1600 Atlanta Financial Center   3343 Peachtree Road, N.E.   Atlanta, GA 30326   Attn:  Marc R. Bulson, Esq.   Telephone:  (404) 504-7783   Facsimile:  (404) 365-9532   E-mail: mbulson@mmmlaw.com      PROPERTY:      Section 1.1.1 The Amazon.com distribution facility located at   1950 Joe B. Jackson Parkway, Murfreesboro,   Rutherford County, Tennessee, more particularly   described herein.       PURCHASE PRICE:      Section 2.1 $69,050,000.00   DEPOSIT:      Section 2.2.1 Deposit: $690,500.00         VOID DATE:      Section 11.18 July 30, 2013 with respect to Title Company’s   confirmation of receipt of a fully executed copy   of this Agreement and July 31, 2013 with respect   to Title Company’s confirmation of receipt of the   Deposit      TITLE COMPANY:      Section 2.2.1(b) mailto:First American Title Insurance Company   National Commercial Services   The Esplanade Commercial Center   2425 E. Camelback Road, Suite 300   Phoenix, AZ  85016   Attention:  Brandon Grajewski   Telephone:  (602) 567-8145   Facsimile:    (602) 567-8101   E-mail: bgrajewski@firstam.com       APPROVAL DATE:      Section 3.6 July 30, 2013   CLOSING DATE:      Section 2.3 July 31, 2013, as may be extended pursuant to the   terms of this Agreement.      BROKER:      Section 5.3 CBRE            * To the extent of any conflict between the terms and provisions of this Term Sheet and the Purchase and   Sale Agreement, the terms and provisions of the Purchase and Sale Agreement shall govern and control.     

 

   1   ___________________________   Amazon.com Sale of 2020 Joe B. Jackson Parkway, Murfreesboro, Rutherford County, Tennessee   Purchase and Sale Agreement      PURCHASE AND SALE AGREEMENT         THIS PURCHASE AND SALE AGREEMENT (this “Agreement”), is made as of the 30th day   of July, 2013 (the "Effective Date") by and between US REAL ESTATE LIMITED PARTNERSHIP, a   Texas limited partnership ("Seller"), with an office at 9830 Colonnade Boulevard, Suite 600, San   Antonio, Texas 78230-2239, and COLE CCIT ACQUISITIONS, LLC, a Delaware limited liability   company ("Purchaser"), with an office at 2325 East Camelback Road, Suite 1100, Phoenix, Arizona   85016.      R E C I T A L S:       Seller desires to sell Seller’s interest in and to that certain improved parcel of real property   commonly known as the Murfreesboro Amazon Fulfillment Center, 1950 Joe B. Jackson Parkway,   Murfreesboro, Rutherford County, Tennessee and legally described on Exhibit 1.1.1 attached hereto (the   “Land”), along with certain related personal and intangible property, and Purchaser desires to purchase   Seller’s interest in and to such real, personal and intangible property.  Landlord leases the Land from The   Industrial Development Board of Rutherford County, Tennessee (the “Master Lessor”) pursuant to the   terms of that certain Lease Agreement dated December 21, 2011 (the “Master Lease”).      NOW, THEREFORE, in consideration of the foregoing, of the covenants, promises and   undertakings set forth herein, and for good and valuable consideration, the receipt and sufficiency of   which are hereby acknowledged, Seller and Purchaser agree as follows:      1. The Property.      1.1 Description. Subject to the terms and conditions of this Agreement, and for the   consideration herein set forth, Seller agrees to sell and transfer, and Purchaser agrees to purchase and   acquire, all of Seller's right, title, and interest in and to the following (collectively, the “Property”):      1.1.1 the Master Lease, which lease relates to the Land;      1.1.2 The buildings, parking areas, improvements, and fixtures now situated on the   Land (the "Improvements");      1.1.3 All personal property, machinery, apparatus, and equipment currently situated on   the Land and used in the operation, repair and maintenance of the Land and Improvements and   situated thereon, if any (collectively, the “Personal Property”), such Personal Property being   more particularly described on Exhibit 1.1.3 attached hereto. The Personal Property to be   conveyed is subject to depletions, replacements and additions in the ordinary course of business;      1.1.4 All easements, hereditaments, and appurtenances belonging to or inuring to the   benefit of Seller and pertaining to the Land, if any;      1.1.5 That certain Lease Agreement dated December 21, 2011 by and between Seller,   as landlord and Amazon.com.dedc, LLC, as tenant (“Tenant”), copies of which lease has been   provided to Purchaser, and all guaranties thereof (the “Tenant Lease”, and together with the   Master Lease, the “Leases”);     

 

   2   ___________________________   Amazon.com Sale of 2020 Joe B. Jackson Parkway, Murfreesboro, Rutherford County, Tennessee   Purchase and Sale Agreement           1.1.6 Subject to Section 3.3, contracts and agreements relating to the operation or   maintenance of the Land, Improvements or Personal Property to which Seller is party, the terms   of which extend beyond midnight of the day preceding the date of Closing, such contracts and   agreements listed on Exhibit 1.1.6 attached hereto;        1.1.7 Assignable warranties and guaranties issued in connection with the   Improvements or Personal Property, if any (provided, such assignment shall be on a non-   exclusive basis) (the “Warranties”), excluding Tenant’s rights in and to the warranties required to   be assigned to Tenant under the Tenant Lease; and      1.1.8 All transferable consents, authorizations, variances or waivers, licenses, permits   and approvals from any governmental or quasi-governmental agency, department, board,   commission, bureau or other entity or instrumentality solely with respect to the Land, the Leases   or the Improvements, if any (collectively, the "Approvals").       1.2 "As-Is" Purchase. THE PROPERTY IS BEING SOLD IN AN "AS IS, WHERE IS"   CONDITION AND "WITH ALL FAULTS" AS OF THE DATE OF THIS AGREEMENT AND   OF CLOSING. EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, NO   REPRESENTATIONS OR WARRANTIES HAVE BEEN MADE OR ARE MADE AND NO   RESPONSIBILITY HAS BEEN OR IS ASSUMED BY SELLER OR BY ANY PARTNER,   OFFICER, PERSON, FIRM, AGENT OR REPRESENTATIVE ACTING OR PURPORTING TO   ACT ON BEHALF OF SELLER AS TO (I) THE CONDITION OR STATE OF REPAIR OF THE   PROPERTY; (II) THE COMPLIANCE OR NON-COMPLIANCE OF THE PROPERTY WITH   ANY APPLICABLE LAWS, REGULATIONS OR ORDINANCES (INCLUDING, WITHOUT   LIMITATION, ANY APPLICABLE ZONING, BUILDING OR DEVELOPMENT CODES); (III)   THE VALUE, EXPENSE OF OPERATION, OR INCOME POTENTIAL OF THE PROPERTY;   (IV) THE CREDIT-WORTHINESS OF ANY TENANT, VENDOR OR OTHER PERSON OR   ENTITY; (V) ANY OTHER FACT OR CONDITION WHICH HAS OR MIGHT AFFECT THE   PROPERTY OR THE CONDITION, STATE OF REPAIR, COMPLIANCE, VALUE, EXPENSE   OF OPERATION OR INCOME POTENTIAL OF THE PROPERTY OR ANY PORTION   THEREOF; OR (VI) WHETHER THE PROPERTY CONTAINS ASBESTOS OR HARMFUL OR   TOXIC SUBSTANCES OR PERTAINING TO THE EXTENT, LOCATION OR NATURE OF   SAME. THE PARTIES AGREE THAT ALL UNDERSTANDINGS AND AGREEMENTS   HERETOFORE MADE BETWEEN THEM OR THEIR RESPECTIVE AGENTS OR   REPRESENTATIVES ARE MERGED IN THE AGREEMENT AND THE EXHIBITS HERETO   ANNEXED, WHICH ALONE FULLY AND COMPLETELY EXPRESS THEIR AGREEMENT,   AND THAT THIS AGREEMENT HAS BEEN ENTERED INTO AFTER FULL   INVESTIGATION, OR WITH THE PARTIES SATISFIED WITH THE OPPORTUNITY   AFFORDED FOR FULL INVESTIGATION, NEITHER PARTY RELYING UPON ANY   STATEMENT OR REPRESENTATION BY THE OTHER UNLESS SUCH STATEMENT OR   REPRESENTATION IS SPECIFICALLY EMBODIED IN THIS AGREEMENT OR THE   EXHIBITS ANNEXED HERETO. TO THE EXTENT THAT SELLER HAS PROVIDED TO   PURCHASER ANY SURVEYS, TITLE COMMITMENTS, INSPECTION, ENGINEERING OR   ENVIRONMENTAL REPORTS (INCLUDING REPORTS CONCERNING ASBESTOS OR   HARMFUL OR TOXIC SUBSTANCES, OR ANY OTHER MATERIALS, INFORMATION OR   DATA IN CONNECTION WITH PURCHASER'S INSPECTION OF THE PROPERTY),   SELLER MAKES NO REPRESENTATIONS OR WARRANTIES WITH RESPECT TO THE     

 

   3   ___________________________   Amazon.com Sale of 2020 Joe B. Jackson Parkway, Murfreesboro, Rutherford County, Tennessee   Purchase and Sale Agreement      ACCURACY OR COMPLETENESS, METHODOLOGY OF PREPARATION OR OTHERWISE   CONCERNING THE CONTENTS OF SUCH REPORTS, MATERIALS, INFORMATION AND   DATA. PURCHASER ACKNOWLEDGES THAT ANY SUCH REPORTS, MATERIALS,   INFORMATION AND DATA MADE AVAILABLE TO PURCHASER ARE MADE AVAILABLE   AS A CONVENIENCE AND AN ACCOMMODATION ONLY, AND THAT SELLER HAS   REQUESTED PURCHASER TO INSPECT FULLY THE PROPERTY AND INVESTIGATE   ALL MATTERS RELEVANT THERETO AND TO RELY SOLELY UPON THE RESULTS OF   PURCHASER'S OWN INSPECTIONS OR OTHER INFORMATION OBTAINED OR   OTHERWISE AVAILABLE TO PURCHASER, RATHER THAN ANY INFORMATION THAT   MAY HAVE BEEN PROVIDED BY SELLER TO PURCHASER.      EXCEPT FOR THOSE REPRESENTATIONS AND WARRANTIES SET FORTH IN   SUBSECTION 5.1.1 THROUGH 5.1.3, PURCHASER WAIVES AND RELEASES SELLER   FROM ANY PRESENT OR FUTURE CLAIMS ARISING FROM OR RELATING TO THE   CONDITION, OPERATION OR ECONOMIC PERFORMANCE OF THE PROPERTY,   INCLUDING, WITHOUT LIMITATION, THE PRESENCE OR ALLEGED PRESENCE OF   ASBESTOS OR HARMFUL OR TOXIC SUBSTANCES IN, ON, UNDER OR ABOUT THE   PROPERTY INCLUDING, WITHOUT LIMITATION, ANY CLAIMS UNDER OR ON   ACCOUNT OF (I) THE COMPREHENSIVE ENVIRONMENTAL RESPONSE,   COMPENSATION AND LIABILITY ACT OF 1980, AS THE SAME MAY HAVE BEEN OR   MAY BE AMENDED FROM TIME TO TIME, AND SIMILAR STATE STATUTES, AND ANY   REGULATIONS PROMULGATED THEREUNDER; (II) ANY OTHER FEDERAL, STATE OR   LOCAL LAW, ORDINANCE, RULE OR REGULATION, NOW OR HEREAFTER IN EFFECT,   THAT DEALS WITH OR OTHERWISE IN ANY MANNER RELATES TO, ENVIRONMENTAL   MATTERS OF ANY KIND; OR (III) THE COMMON LAW.       THE TERMS AND PROVISIONS OF THIS SECTION SHALL SURVIVE CLOSING   HEREUNDER.         /s/ TW______________                         /s/ JP ____________   Purchaser's Initials               Seller's Initials      1.3 Agreement to Convey. Seller agrees to convey, and Purchaser agrees to accept, title to the   Master Lease by assignment of lease in the form attached hereto as Exhibit 9.3.4B and to related   Improvements in the condition described in Section 3.4 and title to the Personal Property, by bill of sale,   without warranty as to the title or the condition of such personalty, and Seller agrees to assign, and   Purchaser agrees to accept, an assignment of Seller’s interest in the Tenant Lease and Warranties pursuant   to assignment  and assumption of leases and assignment of Seller’s interest in the Approvals and   Contracts pursuant to an assignment of contract, all as more particularly set forth herein.      2. Price and Payment.      2.1 Purchase Price. Subject to the provisions of the immediately following paragraph, the   total purchase price (the "Purchase Price") to be paid by Purchaser to Seller for the sale and conveyance   of Seller’s interest in the Property shall be payable in full in cash at the Closing, and subject to prorations   as herein set forth, is Sixty Nine Million Fifty Thousand and No/100ths DOLLARS ($69,050,000.00).    All references in this Agreement to dollars means United States Dollars.      

 

   4   ___________________________   Amazon.com Sale of 2020 Joe B. Jackson Parkway, Murfreesboro, Rutherford County, Tennessee   Purchase and Sale Agreement         2.2 Earnest Money and Independent Consideration. Payment of the Purchase Price is to be   made in cash as follows:      2.2.1 (a) On July 31, 2013, Purchaser shall deposit earnest money with the Title   Company (as hereinafter defined) in the amount of Six Hundred Ninety Thousand Five   Hundred AND NO/100 DOLLARS ($690,500.00) (the “Deposit”) in the form of cash to be   held by Title Company pursuant to the terms, covenants and conditions of this Agreement.   Upon delivery of the Deposit to the Title Company, the Deposit shall be non-refundable   (except as otherwise specified herein). The Deposit shall be in good funds, either by   cashier’s check or by federal wire transfer and shall be delivered to and held by the Title   Company pursuant to the terms, covenants and conditions of this Agreement. If Purchaser   fails to make the Deposit as and when required herewith, Seller may terminate this   Agreement by written notice to Purchaser, in which case the parties shall have no further   obligation to each other except for any provisions that expressly survive the termination of   this Agreement.         (b) The Deposit will be placed with and held in escrow by First   American Title Insurance Company, National Commercial Services, The Esplanade   Commercial Center, 2425 E. Camelback Road, Suite 300, Phoenix, Arizona 85016,   Attention: Brandon Grajewski (the “Title Company”), in immediately available funds in   an interest bearing account at a mutually acceptable banking institution.  Any interest   earned by the Deposit shall be considered as part of the Deposit.  Except as otherwise   provided in this Agreement, the Deposit will be applied to the Purchase Price at Closing.         (c) Prior to or contemporaneous with the execution hereof by Purchaser   and Seller, Purchaser has paid to Seller ONE HUNDRED AND NO/100 DOLLARS   ($100.00) (“Independent Contract Consideration”), which amount Seller and Purchaser   bargained for and agreed to as consideration for Seller's execution and delivery of this   Agreement. The Independent Contract Consideration is non-refundable and in addition to   any other payment or deposit required by this Agreement, and Seller shall retain the   Independent Contract Consideration notwithstanding any other provision of this   Agreement to the contrary.      2.3 Closing. Payment of the Purchase Price and the closing hereunder (the "Closing") shall   be subject to the satisfaction of the conditions precedent set forth in Section 9.1 and shall take place   pursuant to an escrow closing on or before July 31, 2013, as may be extended pursuant to the terms of this   Agreement (the "Closing Date"), at the offices of the Title Company at a time to be mutually agreed upon   by the parties or at such other time and place as may be agreed upon in writing by Seller and Purchaser.        

 

   5   ___________________________   Amazon.com Sale of 2020 Joe B. Jackson Parkway, Murfreesboro, Rutherford County, Tennessee   Purchase and Sale Agreement      3. Inspections and Approvals.      3.1 Inspections.      3.1.1 Seller agrees to allow Purchaser and Purchaser's engineers, architects, employees,   agents and representatives reasonable access, during normal business hours to the Property   (subject in all respects to the rights of Tenant under the terms of the Tenant Lease and subject to   the terms of the Master Lease) and to the records, if any, maintained by or for Seller by Seller or   Seller's property management company or otherwise within the possession or control of Seller or   its representatives. Such access shall be solely for the purposes of (i) reviewing the Master Lease   and the Tenant Lease and any records relating thereto; (ii) reviewing records relating to operating   expenses; and (iii) inspecting the physical condition of the Property and conducting non-intrusive   physical and environmental tests and inspections of the Property. PURCHASER SHALL NOT   CONDUCT OR ALLOW ANY PHYSICALLY INTRUSIVE TESTING OF, ON OR   UNDER THE LAND OR THE IMPROVEMENTS WITHOUT FIRST OBTAINING   SELLER'S WRITTEN CONSENT AS TO THE TIMING AND SCOPE OF WORK TO BE   PERFORMED, WHICH CONSENT MAY BE WITHHELD IN SELLER’S SOLE AND   ABSOLUTE DISCRETION.       3.1.2 Purchaser agrees that, in making any inspections of, or conducting any testing of,   on or under, the Property, Purchaser and all representatives of Purchaser entering onto the   Property shall each carry (a) not less than $1,000,000 commercial general liability insurance, and   (b) excess or umbrella liability insurance with limits of not less than $2,000,000, insuring all   activity and conduct of Purchaser and such representatives while exercising such right of access.   Purchaser represents and warrants that it carries not less than the coverage set forth in paragraphs   (a) and (b) of this Section 3.1.2 with contractual liability endorsement which insures Purchaser's   indemnity obligations hereunder, and, upon request of Seller, will provide Seller with written   evidence of same.      3.1.3 Purchaser agrees that in exercising its right of access hereunder, Purchaser will   use (and cause its representatives to use) its best efforts not to interfere with the activity of tenants   or any persons occupying or providing service at the Property. Purchaser shall give Seller   reasonable prior notice of its intention to conduct any inspections or tests, so that Seller shall have   a reasonable opportunity to have a representative present during any such inspection or test, and   Seller expressly reserves the right to have such a representative present. Failure of Seller to   respond within three (3) business days of such notice shall be deemed approval by the Seller of   such inspections or tests; provided, Seller’s failure to respond shall not be deemed approval of   any physically intrusive testing which shall be governed in all respects by the terms of Section   3.1.1 above. Purchaser agrees to cooperate with any reasonable request by Seller in connection   with the timing of any such inspection or test. Purchaser agrees to provide Seller with a copy of   any written inspection or test report or summary upon Seller's request therefor, provided Seller   pays Purchaser 50% of the costs of such inspections or reports which obligation shall survive any   termination of this Agreement or Closing.      3.1.4 Unless Seller specifically and expressly otherwise agrees in writing, Purchaser   agrees that (a) the results of all inspections, tests, analyses, studies and similar reports relating to   the Property prepared by or for Purchaser utilizing any information acquired in whole or in part   through the exercise of Purchaser's inspection rights; and (b) all information (the "Proprietary     

 

   6   ___________________________   Amazon.com Sale of 2020 Joe B. Jackson Parkway, Murfreesboro, Rutherford County, Tennessee   Purchase and Sale Agreement      Information") regarding the Property of whatsoever nature made available to Purchaser by Seller   or Seller's agents or representatives is confidential and shall not be disclosed to any other person   except those assisting Purchaser with the transaction, or Purchaser's lender, and then only upon   Purchaser making such person aware of the confidentiality restriction and procuring such person's   agreement to be bound thereby and by the terms of the Existing Confidentiality Agreement (as   defined below). Purchaser agrees not to use or allow to be used any such information for any   purpose other than to determine whether to proceed with the contemplated purchase, or if same is   consummated, in connection with the operation of the Property post-Closing. Further, if the   purchase and sale contemplated hereby fails to close for any reason whatsoever, Purchaser agrees   to return to Seller, or cause to be returned to Seller, all Proprietary Information.  Notwithstanding   any other term of this Agreement, the provisions of this Section 3.1.4 shall expire upon the   earlier of (i) Closing or (ii) 365 days after the termination of this Agreement.  Notwithstanding   the foregoing, but subject to the Existing Confidentiality Agreement, the confidentiality   provisions of this Section 3.1.4 shall not apply to any disclosures made by Purchaser as required   by law, by court order, or in connection with any subpoena served upon Purchaser, provided that   Purchaser provides Seller with prompt written notice of any such requirement or subpoena (other   than where prohibited by law) so that Seller may, in its sole discretion, seek a protective order or   other appropriate remedy.  Further, the confidentiality obligations of this Section 3.1.4 shall be   inoperative as to any portions of the Proprietary Information which is or becomes generally   available to the public other than as a result of a disclosure by Purchaser or its representatives in   breach of this Agreement. The obligations under this Section 3.1.4 and Section 11.7 hereof are in   addition to and not in lieu of the confidentiality obligations contained in that certain   Nondisclosure Agreement dated as of May 3, 2013 executed by Purchaser’s affiliate for the   benefit of Tenant (the “Existing Confidentiality Agreement”) and the execution of this   Agreement shall not supersede or diminish Purchaser’s obligations thereunder and Purchaser   acknowledges that the Existing Confidentiality Agreement binds Purchaser and shall continue to   bind Purchaser in accordance with its terms notwithstanding the expiration of Purchaser’s   obligations under this Section 3.1.4.         3.1.5 Purchaser shall, at its sole cost and expense, promptly restore any physical   damage or alteration of the physical condition of the Property which results from any inspections   or testing conducted by or on behalf of Purchaser, which obligation shall survive Closing or the   termination of this Agreement for a period of twelve (12) months. All inspections and testing   shall be conducted at Purchaser's sole cost and expense and in strict accordance with all   requirements of applicable law.        3.1.6 Except as expressly set forth in this Agreement, Seller makes no representations   or warranties as to the truth, accuracy or completeness of any materials, data or other information   supplied to Purchaser in connection with Purchaser's inspection of the Property (e.g., that such   materials are complete, accurate or the final version thereof, or that such materials are all of such   materials as are in Seller's possession). It is the parties' express understanding and agreement that   such materials are provided only for Purchaser's convenience in making its own examination and   determination prior to the Approval Date as to whether it wishes to purchase the Property, and, in   doing so, Purchaser shall rely exclusively on its own independent investigation and evaluation of   every aspect of the Property and not on any materials supplied by Seller. Except as expressly set   forth in this Agreement, Purchaser expressly disclaims any intent to rely on any such materials   provided to it by Seller in connection with its inspection and agrees that it shall rely solely on its   own independently developed or verified information.     

 

   7   ___________________________   Amazon.com Sale of 2020 Joe B. Jackson Parkway, Murfreesboro, Rutherford County, Tennessee   Purchase and Sale Agreement           3.1.7 PURCHASER AGREES (WHICH AGREEMENT SHALL SURVIVE   CLOSING OR TERMINATION OF THIS AGREEMENT) TO INDEMNIFY, DEFEND,   AND HOLD SELLER FREE AND HARMLESS FROM ANY LOSS, INJURY, DAMAGE,   CLAIM, LIEN, COST OR EXPENSE, INCLUDING ATTORNEYS' FEES AND COSTS,   ARISING OUT OF PURCHASER'S AND PURCHASER’S REPRESENTATIVES’   ACTIVITIES ON THE PROPERTY IN CONNECTION WITH THEIR INSPECTIONS   AND TESTING AND ARISING OUT OF A BREACH OF THE FOREGOING   AGREEMENTS BY PURCHASER IN CONNECTION WITH THE INSPECTION AND   TESTING OF THE PROPERTY.  THE TERMS AND PROVISIONS OF THIS SECTION   SHALL SURVIVE CLOSING HEREUNDER.      3.2 Title and Survey. Seller has delivered to Purchaser copies of the existing survey of the   Land and Improvements in Seller’s possession or control (the "Survey"). Purchaser has obtained with   respect to the Property a current (meaning bearing an issue date not earlier than thirty (30) days prior to   the Effective Date) title commitment for the issuance of a standard ALTA Leasehold Owner’s Title   Insurance Policy with respect to Seller's interest in the Master Lease, the Land, appurtenances and   Improvements (the "Title Commitment"), and Purchaser has provided or caused the Title Company to   provide Seller copies of the Title Commitment and copies of all documents and instruments referred to as   exceptions to title in the Title Commitment.  The Title Commitment is in an amount equal to the Purchase   Price. Purchaser has provided written notice dated July 23, 2013 to Seller of matters shown by the Title   Commitment or Survey which are not satisfactory to Purchaser (the "Title Notice").  Seller shall have   until the Closing Date to elect to cure or not to cure any title objections to the satisfaction of the   Purchaser.  If Seller elects not to cure such objections, Purchaser may terminate this Agreement in its sole   discretion and the Title Company shall refund the Deposit to Purchaser.  If the Seller elects to cure such   title objections to the satisfaction of the Purchaser, then the parties shall then have until the Closing Date   to make such arrangements or take such steps as they shall mutually agree to satisfy Purchaser's   objection(s) ; provided, however, except as otherwise provided herein, Seller shall have no obligation   whatsoever to expend or agree to expend any funds, to undertake or agree to undertake any obligations or   otherwise to cure or agree to cure any title or survey objections, and Seller shall not be deemed to have   any obligation to cure unless Seller expressly undertakes such an obligation by a written notice to or   written agreement with Purchaser given or enter into on or prior to the Approval Date and which recites   that it is in response to a Title Notice.  Notwithstanding the foregoing, all exceptions to title shown on the   Title Commitment or otherwise arising prior to Closing which evidence (i) mortgages or deeds of trust   encumbering Seller’s fee interest in the Property; (ii) judgment liens evidencing non-appealable   judgments rendered against Seller and encumbering Seller’s fee interest in the Property; or (iii)   mechanic’s or materialmen’s liens encumbering Seller’s fee interest in the Property and arising from any   work performed or materials furnished for or on behalf of Seller (items i, ii, and iii above collectively   referred to as “Lien Exceptions”), shall, in each instance, be deemed objected to without any notice by   Purchaser and cured by Seller (which, in the case of a mechanic’s or materialmen’s lien shall include, at   Seller’s option, bonding around or insuring-over the mechanic’s or materialmen’s lien) at or prior to   Closing. Except as otherwise provided with respect to Lien Exceptions, Purchaser's sole right with respect   to the Title Commitment or Survey to matters to which it objected in its Title Notice shall be to elect on   or before the Closing Date to terminate this Agreement. All matters shown on the Title Commitment   and/or Survey with respect to which Purchaser failed to give a Title Notice, or with respect to which a   timely Title Notice is given but Seller fails to undertake an express obligation to cure as provided above,   shall be deemed to be approved by Purchaser and "Permitted Encumbrances" as provided in Section 3.4   hereof, subject, however, to Purchaser's termination right provided in this Section 3.2.     

 

   8   ___________________________   Amazon.com Sale of 2020 Joe B. Jackson Parkway, Murfreesboro, Rutherford County, Tennessee   Purchase and Sale Agreement          Purchaser shall have the right to cause a new survey of the Property to be prepared and   certified to Purchaser, Seller and the Title Company prior to Closing (an “Updated Survey”). If, prior to   Closing, the Updated Survey reflects, Seller discloses to Purchaser or Purchaser discovers pursuant to an   updated title commitment (an “Updated Title Commitment”) or otherwise discovers that title to the   Property is subject to defects, limitations or encumbrances other than (i) the Permitted Encumbrances; or   (ii) any matter caused by Purchaser or any person or entity claiming by, through or under Purchaser; then   Purchaser shall promptly give Seller written notice of its objection thereto.  Such written notice shall   additionally notify Seller that the Agreement may be terminated if such title defect is not removed,   bonded or insured-over in a commercially reasonable manner prior to the Closing Date. In such event,   Seller may elect to postpone the Closing for thirty (30) days and attempt to cure such objection. If   Purchaser fails to waive any such objection within ten (10) days after notice from Seller that Seller is   unable to or elects not cure the objection, this Agreement will terminate automatically and the Title   Company to return the Deposit to Purchaser, provided that Purchaser and Seller shall not be in default   hereunder, and neither party shall have any liability to the other except for the surviving obligations of   Purchaser and Seller set forth in this Agreement.  For the purposes of this Agreement, any title defect,   limitation or encumbrance, other than those enumerated in (i) – (ii) above, shall be deemed cured if the   Title Company or another title company reasonably acceptable to Purchaser and authorized to do business   in the State in which the Property is located will agree to issue a standard ALTA form of leasehold   owner's title insurance policy to Purchaser for the Purchase Price, which policy takes no exception for   such defect, limitation or encumbrance and is issued for no additional premium or for an additional   premium if Seller agrees to pay such additional premium upon Closing.      3.3 Contracts. On or before the Approval Date, Purchaser shall notify Seller in writing if   Purchaser elects not to assume at Closing any of the service, maintenance, management, supply,   landscaping and lawn or other contracts to which Seller is a party listed in Exhibit 1.1.6 relating to the   operation of the Property (the “Contracts”), copies of which Contracts have been provided to Purchaser.   If Purchaser does not notify Seller prior to the Approval Date, it shall be conclusively presumed that   Purchaser rejects all of the Contracts.  If Purchaser exercises its right not to assume one or more Contracts   at Closing, Seller shall terminate such disapproved contract(s) and make payment of any termination   charges.  Notwithstanding the foregoing, Purchaser shall have no right to terminate any Contracts which   are required to remain in full force and effect pursuant to the terms of the Tenant Lease and Purchaser   shall be required to assume the same at Closing.  Provided, further, that the Development Agreement (as   defined in the Tenant Lease) (the “Development Agreement”) shall not constitute a Contract for purposes   of this Agreement.      3.4 Permitted Encumbrances. Unless Purchaser terminates this Agreement pursuant to   Section 3.2 or Section 3.6 hereof, as applicable, following its opportunity fully to inspect the Property,   the state of title thereto and all other matters relating to the Property, including its feasibility for   Purchaser's intended use and its suitability as an investment, Purchaser shall be deemed to have approved   and to have agreed to purchase the Property subject to the following:        3.4.1 All exceptions to title shown in the Title Commitment or Updated Title   Commitment or matters shown on the Survey and Updated Survey which Purchaser has approved   or is deemed to have approved pursuant to Section 3.2 hereof;        3.4.2 All contracts which Purchaser has approved pursuant to Sections 3.3, 4.3 and 4.4   hereof;     

 

   9   ___________________________   Amazon.com Sale of 2020 Joe B. Jackson Parkway, Murfreesboro, Rutherford County, Tennessee   Purchase and Sale Agreement           3.4.3 The lien of non-delinquent real and personal property taxes and assessments;        3.4.4 Rights of parties in possession permitted under the Leases;        3.4.5 Any state of facts which the Survey or an inspection of the premises would   disclose;        3.4.6 Easements or claims of easements shown by the public records;      3.4.7 Any service, installation, connection, maintenance or construction charges due   after Closing, and subject to the proration provisions hereof, for sewer, water, electricity,   telephone, cable television or gas; and       3.4.8 The Leases.      All of the foregoing are referred to herein collectively as "Permitted Encumbrances."       3.5 Miscellaneous Property Information. Seller has provided Purchaser with the information   listed in Exhibit 3.5 ("Miscellaneous Property Information") or otherwise made such information   available to Purchaser for Purchaser's review, to the extent such information exists and is within the   possession or control of Seller.       3.6 Purchaser's Right to Terminate.    Purchaser shall have the right, for any reason or no reason, by giving Seller and Title Company written   notice (the "Termination Notice") on or before 6:00 p.m. Phoenix, Arizona time on July 30, 2013 (the   "Approval Date") to terminate this Agreement.  Purchaser’s execution of this Agreement shall serve as   notice to Seller and the Title Company of Purchaser’s waiver of its termination rights under this Section   3.6.      Notwithstanding the fact that the Tenant Lease contains a tenant right of first refusal or right of first offer   (either such right, a “ROFR”), Purchaser hereby agrees that its inspections shall commence and run   through the Approval Date as set forth in this Section 3, and commencement thereof shall not be tolled   pending receipt of a written waiver of such ROFR by Tenant; provided, however, that in return therefor,   Seller hereby agrees that, in the event Tenant does give notice of its intent to exercise the ROFR or does   actually exercise the ROFR, Seller shall promptly reimburse to Purchaser all reasonable out-of-pocket and   third-party property diligence expenses incurred by Purchaser, including, without limitation, reasonable   attorneys’ fees and costs, in an amount not in excess of $55,000 in the aggregate.       3.7 Tenant Estoppel and Acceptance Letter. Seller shall secure and deliver to Purchaser, on   or before the Closing Date, (i) a signed estoppel certificate from Tenant with respect to the Tenant Lease   in the form attached as an exhibit to the Tenant Lease (the “Tenant Estoppel”), (ii) a signed estoppel   certificate from the Master Lessor with respect to the Master Lease in the form attached hereto as Exhibit   3.7 (the “Master Lease Estoppel”; the Master Lease Estoppel together with the Tenant Estoppel are   collectively referred to as the “Estoppels”) and (iii) a signed copy of the letter executed by Tenant   accepting the “Landlord Improvements” as contemplated under Section 10.1 of the Development   Agreement (the “Acceptance Letter”). If the Estoppels or Acceptance Letter shows defaults by the lessor   or the lessee under the Tenant Lease, the Master Lease or under the Development Agreement that are     

 

   10   ___________________________   Amazon.com Sale of 2020 Joe B. Jackson Parkway, Murfreesboro, Rutherford County, Tennessee   Purchase and Sale Agreement      material and cannot or will not be cured by the Closing Date or illustrate any material and adverse matters   that are otherwise inconsistent with the form of the Estoppels or Acceptance Letter sent to Tenant or   Master Lessor or if the Tenant Estoppel does not contain an acknowledgment that Tenant is not entitled to   a reduction in Base Rent pursuant to Section 4 of the Tenant Lease and Section 6.6 of the Development   Agreement (a “Material Defect”), then such delivery shall not be deemed delivery of the Estoppels and/or   Acceptance Letter, as applicable. If the Estoppels and Acceptance Letter are not delivered to Purchaser   (or deemed not delivered) on or before the Closing Date, then Seller or Purchaser shall have the right to   extend the Closing for up to fifteen (15) days upon written notice to the other party delivered on or before   5:00 p.m. Phoenix, Arizona time on the scheduled Closing Date; provided that the Closing Date shall   occur two (2) business days following delivery of the Estoppels and/or Acceptance Letter.  If the   Estoppels and/or Acceptance Letter is not delivered to Purchaser (or deemed not delivered) at least two   (2) business days prior to the Closing Date, as may be extended by the terms of the prior sentence, then   Purchaser shall, as its sole and exclusive remedy, elect to either: (a) terminate this Agreement upon   written notice thereof delivered to Seller at least one (1) business day prior to the Closing Date, or (b)   waive such failure by Seller and close the transaction contemplated by this Agreement, with no recourse   against Seller based on such failure.  If such termination notice is given (or deemed given as set forth   below), the Title Company shall immediately return the Deposit to Purchaser and neither party shall have   any further liability hereunder except for the obligations that expressly survive the termination of this   Agreement.  If Purchaser fails to timely deliver any such termination notice, Purchaser will be deemed to   have elected to terminate this Agreement pursuant to (a) above.       4. Prior to Closing.      4.1 Insurance. Until Closing, maintain any policies of insurance that Seller is required to   maintain pursuant to the terms of the Leases.      4.2 Maintenance. Until Closing, maintain and/or cause to be maintained the condition of the   Property as required to be maintained by Seller, as lessor, under the Leases, if applicable, subject to   ordinary wear and tear.      4.3 New Contracts. After the Effective Date, Seller or Seller's agent shall, upon the written   reasonable approval of Purchaser, enter into only those third-party contracts which are necessary to carry   out its obligations under the Leases and Section 4.2 and which shall be cancelable on thirty (30) days'   written notice without penalty or termination fee. If Seller enters into any such contract, it shall promptly   provide a true, complete and correct copy thereof to Purchaser and unless Purchaser, within seven (7)   days thereafter, notifies Seller in writing of its intention to assume such contract, it shall be treated as a   contract disapproved by Purchaser under Section 3.3 hereof.      4.4 New Leases and Amendments.  After the Approval Date, Seller will not execute any new   leases or amend, terminate or accept the surrender of the Leases or waive any landlord rights or tenant   obligations under the Leases or approve any subleases without the prior written consent of Purchaser,   which consent shall not be unreasonably withheld. Failure of Purchaser to consent or expressly withhold   its consent within three (3) business days after receipt of such written request for such consent shall be   deemed to constitute disapproval of such lease, sublease, amendment or termination or acceptance of the   surrender of the Leases or waiver of any landlord rights or tenant obligations under the Leases.    Notwithstanding the foregoing, if Seller proposes any new leases or proposes to amend, terminate or   accept the surrender of the Leases or waive any landlord rights or tenant obligations under the Leases or   approve any subleases within three (3) business days prior to the Approval Date, then the parties agree     

 

   11   ___________________________   Amazon.com Sale of 2020 Joe B. Jackson Parkway, Murfreesboro, Rutherford County, Tennessee   Purchase and Sale Agreement      that the Approval Date shall be extended three (3) additional business days with respect to this Section   4.4 only.      Further, Seller hereby covenants to Purchaser from and after the Effective Date and until the   Closing Date or earlier termination of this Agreement:      (i) Subject to the right of first offer and/or right of refusal in favor of Tenant   under the Tenant Lease, Seller will not enter into nor execute any agreement, written or oral, under which   Seller is or could become obligated to sell the Property, or any portion thereof, to a third party, without   Purchaser’s prior written consent;      (ii) Seller will not, without the prior written consent of Purchaser, take any   action before any governmental authority having jurisdiction thereover, the object of which would be to   change the present zoning of or other land-use limitations, upon the Property, or any portion thereof, or its   potential use;      (iii) without Purchaser’s prior written consent, Seller shall not, by voluntary   or intentional act or omission to act, further cause or create any easement, encumbrance, or mechanic’s or   materialmen’s liens, and/or similar liens or encumbrances to arise or to be imposed upon Seller’s interest   in the Property or any portion thereof that effects title thereto;       (iv) Seller shall not, without the prior written consent of Purchaser, provide a   copy of, nor disclose any of the terms of, this Agreement to any appraiser, and Seller shall instruct   Seller’s Broker that it may not provide a copy of nor disclose any of the terms of this Agreement to any   appraiser without the prior written consent of Purchaser;       (v) should Seller receive notice or knowledge of any information regarding   any of the matters set forth in this Section, Seller will promptly notify Purchaser of the same in writing;   and      (vi) take such actions which Seller may be allowed under the terms of the   Leases and in accordance with such terms, to cause Tenant to comply in all material respects with the   terms, covenants and conditions of the Leases, including, but not limited to, all insurance and   maintenance obligations under the Leases.      5. Representations and Warranties.      5.1 By Seller. Seller represents and warrants to Purchaser that:       5.1.1 Seller is a Texas limited partnership, duly organized under the laws of the State   of its organization, and is authorized to do business in the State in which the Property is located,   has duly authorized the execution and performance of this Agreement and the documents to be   delivered pursuant to Section 9.3, and such execution and performance will not result in a breach   of or default under any document, instrument, order or agreement to which Seller is a party or by   which Seller is bound;        5.1.2 Seller is not a "foreign person" within the meaning of Section 1445 of the   Internal Revenue Code of 1986, as amended; and      

 

   12   ___________________________   Amazon.com Sale of 2020 Joe B. Jackson Parkway, Murfreesboro, Rutherford County, Tennessee   Purchase and Sale Agreement          5.1.3 Except as otherwise indicated on the Disclosure Statement attached hereto as   Exhibit 5.1.3:       (i) Litigation. There is no action, suit, litigation or proceeding to which Seller is a   party the outcome of which could materially adversely affect any of the Property pending   or being prosecuted in any court or before any federal, state, county or municipal   department, commission, bureau, agency or other governmental instrumentality, other   than tax contests, if any, and to Seller’s knowledge no such action is threatened;       (ii) Environmental. To Seller’s knowledge, other than as disclosed in the reports   and documents delivered by Seller to Purchaser pursuant to Section 3.5, including,   without limitation, the reports and documents more particularly described in Exhibit   5.1.3 (ii), neither the Property nor Seller (as to any of the Property) is in violation in any   material respect of or liable under any existing, applicable Environmental Law, or subject   to any existing or pending investigation or inquiry by any governmental authority or any   remedial or response action or remedial or response obligations under any Environmental   Law. The term “Environmental Laws” shall mean the Comprehensive Environmental   Response, Compensation and Liability Act of 1980, 42 U.S.C. Sections 9601 et seq., the   Resource Conservation and Recovery Act of 1976, 42 U.S.C. Sections 6901, et seq., the   Toxic Substances Control Act, 15 U.S.C. Sections 2601 et seq., the Hazardous Materials   Transportation Act, 49 U.S.C. 1801 et seq., the Clean Water Act, 33 U.S.C. Sections   1251 et seq., as said laws have been supplemented or amended to date, the regulations   promulgated pursuant to said laws and any other administrative, federal, state or local   law, statute, rule, regulation or ordinance which regulates or proscribes the use, storage,   disposal, presence, cleanup, transportation or release or threatened release into the   environment of Hazardous Materials. The term "Hazardous Materials" shall mean any   substance, chemical, waste or other material which is listed, defined or otherwise   identified as “hazardous” or “toxic” under any of the Environmental Laws, including,   without limitation, formaldehyde, urea, polychlorinated biphenyls, petroleum, petroleum   product or by-product, crude oil, natural gas, natural gas liquids, liquefied natural gas, or   synthetic gas usable for fuel or mixture thereof, radon, asbestos and any by-product of   same;        (iii) Leases. A true and complete copy of the Leases (and all amendments and   guaranties thereto and thereof) in effect as of the Effective Date has been provided to   Purchaser. As of the Effective Date, no portion of the Property is subject to a lease to   which Seller is a party other than the Leases;       (iv) Condemnation. No condemnation proceedings have been instituted against   the Property and Seller has not received any written notice and has no knowledge that   any such proceedings or suits are contemplated;        (v) Proceedings. There are no suits or claims pending or to Seller’s knowledge,   threatened with respect to or in any manner affecting the Property, nor has Seller received   any correspondence or other written information to indicate that there is any pending or   threatened (a) violation of law, (b) environmental, zoning or other land use regulation     

 

   13   ___________________________   Amazon.com Sale of 2020 Joe B. Jackson Parkway, Murfreesboro, Rutherford County, Tennessee   Purchase and Sale Agreement      proceeding, or (c) tax levy or special assessment proceedings against the Property or any   portion thereof;        (vi)  There are no unrecorded leases (other than the Leases) affecting the   Property to which Seller is a party; and Seller does not have any defeasance, lender   approval or prepayment obligations with respect to any existing financing which will   delay the originally scheduled Closing;       (vii)  To Seller’s knowledge, no notice of violation has been issued with regard to   any applicable regulation, ordinance, requirement, covenant, condition or restriction   relating to the present use or occupancy of the Property by any person, authority or agency   having jurisdiction;       (viii)  To Seller’s knowledge, there are no intended public improvements which   will or could result in any charges being assessed against the Property which will result in   a lien upon the Property;       (ix)  Seller has not entered into and there is not existing any other agreement,   written or oral, under which Seller is or could become obligated to sell the Property   (except under the rights of first refusal and first offer pursuant to the Tenant Lease), or any   portion thereof, to a third party;       (x)  Seller has not taken any action before any governmental authority having   jurisdiction thereover, the object of which would be to change the present zoning of or   other land use limitations, upon the Property, or any portion thereof, or its potential use,   and, to Seller’s knowledge, there are no pending proceedings, the object of which would   be to change the present zoning or other land use limitations;       (xi)  To Seller’s knowledge, no default of Seller exists under the Leases; Seller   has sent no written notice of default to the Master Lessor and, to Seller’s knowledge, no   default of the Master Lessor exists under the Master Lease; Seller has sent no written   notice of default to the Tenant and, to Seller’s knowledge, no default of Tenant exists   under the Tenant Lease; Seller has not received any notice or correspondence from Tenant   or Tenant’s agents indicating Tenant’s desire, willingness or intent to amend, modify or   terminate the Tenant Lease;       (xii)  To Seller’s knowledge, Seller has performed its obligations under the   Development Agreement required to be performed as of the Effective Date; to Seller’s   knowledge, no default of Seller exists under the Development Agreement; and Seller has   not received any notice or correspondence from Tenant or Tenant’s agents indicating   Tenant’s desire, willingness or intent to amend, modify or terminate the Development   Agreement;        (xiii) No consent of any third party is required in order for Seller to enter into   this Agreement and perform Seller’s obligations hereunder;       (xiv) Intentionally omitted;        

 

   14   ___________________________   Amazon.com Sale of 2020 Joe B. Jackson Parkway, Murfreesboro, Rutherford County, Tennessee   Purchase and Sale Agreement         (xv) Seller has delivered or, if too extensive, made available to Purchaser for   review, to the extent in existence and in Seller's possession, true and complete copies of all   environmental, asbestos, soil and geotechnical reports regarding the Property;         (xvi)   To Seller’s knowledge, Seller has not engaged in any dealings or   transactions, directly or indirectly (i) in contravention of any U.S. international or other   money laundering regulations or conventions, including, without limitation, the United   States Bank Secrecy Act, the United States Money Laundering Control Act of 1986, the   United States International Money Laundering Abatement and Anti-Terrorist Financing   Act of 2001, Trading with the Enemy Act (50 U.S.C. Section 1 et. seq., as amended), or   any foreign asset control regulations of the United States Treasury Department (31 CFR,   Subtitle B, Chapter V, as amended) or any enabling legislation or executive order relating   thereto.  Seller represents and warrants to, and covenants with Purchaser that (i) neither   Seller nor, to Seller’s knowledge, any of its owners or affiliates currently are, or shall be at   any time during the term hereof, in violation of any laws relating to terrorism or money   laundering (collectively, the “Anti-Terrorism Laws”), including without limitation   Executive Order No. 13224 on Terrorist Financing, effective September 24, 2001, and   regulations of the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC)   related to Specially Designated Nationals and Blocked Persons (SDN’s) (OFAC   Regulations), and/or the Uniting and Strengthening America by Providing Appropriate   Tools Required to Intercept and Obstruct Terrorism Act of 2001 (Public Law 107-56)(the   “USA Patriot Act”); (ii) neither Seller nor, to Seller’s knowledge, any of its owners,   affiliates, investors, officers, directors, employees, vendors, subcontractors or agents is or   shall be during the term hereof a “Prohibited Person” which is defined as follows: (1) a   person or entity owned or controlled by, affiliated with, or acting for or on behalf of, any   person or entity that is identified as an SDN on the then-most current list published by   OFAC at its official website, http://www.treas.gov/offices/cotffc/ofac/sdn/t11sdn.pdf or at   any replacement website or other replacement official publication of such list, and (2) a   person or entity who is identified as or affiliated with a person or entity designated as a   terrorist, or associated with terrorism or money laundering pursuant to regulations   promulgated in connection with the USA Patriot Act; and (iii) Seller has taken appropriate   steps to understand its legal obligations under the Anti-Terrorism Laws and has   implemented appropriate procedures to assure its continued compliance with such laws.    Seller hereby agrees to defend, indemnify, and hold harmless Purchaser, its officers,   directors, agents and employees, from and against any and all claims, damages,   losses, risks, liabilities and expenses (including reasonable attorney’s fees and costs)   arising from or related to any breach of the foregoing representations, warranties   and covenants.       5.1.4 Each of the representations and warranties of Seller contained in Section 5.1: (i)   is made as of the Effective Date; (ii) will be deemed to be remade by Seller, and to be true in all   material respects, as of Closing, subject to other matters expressly permitted in this Agreement or   otherwise specifically approved in writing by Purchaser; and (iii) will survive for a period of   twelve (12) months after the Closing ("Claims Period"). Any claim that Purchaser may have at   any time against Seller for a breach of any such representation or warranty, whether known or   unknown, which is not specifically asserted by a demand notice before the expiration of the   Claims Period and with respect to claims specified in a demand notice before the expiration of the   Claims Period that are not resolved or made the subject of litigation instituted and served prior the     

 

   15   ___________________________   Amazon.com Sale of 2020 Joe B. Jackson Parkway, Murfreesboro, Rutherford County, Tennessee   Purchase and Sale Agreement      expiration of three (3) months after the Claims Period, will not be valid or effective, and Seller   will have no liability with respect thereto. Additionally, any claim actually known by Purchaser   on or prior to Closing shall be deemed waived by Purchaser if Purchaser does not terminate this   Agreement on account thereof, but proceeds to Closing despite such breach. Notwithstanding   anything to the contrary contained herein, with respect to any demand notice given after Closing   but before the end of the Claims Period, in no event will Seller have any liability to Purchaser for   a breach of any covenant, representation or warranty under this Agreement or any Closing   Documents executed pursuant hereto (the "Other Documents") in excess of One Million Seven   Hundred Twenty-Six Thousand Two Hundred Fifty AND NO/100 Dollars ($1,726,250.00) (the   “Claims Ceiling”).  The provisions of this Section 5.1.4 shall survive Closing.       5.1.5 The continued accuracy in all material respects of the aforesaid representations   and warranties is a condition precedent to Purchaser’s obligation to close. If any of said   representations and warranties is not correct in all material respects at the time the same is made   or as of Closing (or at any time in between), and Seller had no knowledge of such inaccuracy   when the representation or warranty was made, or when remade at Closing, or if such warranty or   representation becomes inaccurate on or prior to Closing other than by reason of Seller’s action or   inaction hereunder, Purchaser may, upon being notified of such occurrence on or prior to Closing   and after the expiration of the cure period provided under Section 11.6 hereof, either   (a) terminate this Agreement upon notice to Seller and the Title Company without liability on the   part of Seller or Purchaser, subject to the surviving obligations of Seller or Purchaser under this   Agreement and the Deposit will be returned to Purchaser, or (b) waive such matter and proceed to   Closing, by notice to Seller given within ten (10) days after the expiration of the cure period in   which event Seller shall have no liability with respect to any such inaccuracy. If Purchaser fails to   give any notice within the required time period, Purchaser will be deemed to have elected to   waive such matter and to proceed to Closing. If any of said representations and warranties are not   correct in all material respects at the time the same is made or as of Closing (or any time in   between), and Seller had actual knowledge of such inaccuracy when the representation or   warranty was made, or, by its action or inaction hereunder caused the representation or warranty   to be inaccurate when remade at Closing, Purchaser may, after the expiration of the cure period, if   any, provided under Section 11.6 hereof, either (a) exercise its remedies under Section 10.2, or   (b) terminate this Agreement upon notice to Seller and the Title Company, subject to the   surviving obligations of Seller or Purchaser under this Agreement, and receive a return of the   Deposit and reimbursement by Seller of Purchaser’s out-of-pocket costs in an amount not in   excess of $75,000, or (c) waive the breach and its rights under clauses (a) and (b) and proceed to   Closing, by notice to Seller given within ten (10) days after expiration of the cure period, but in   no event later than Closing, in which event Seller shall have no liability with respect to any such   inaccuracy. If Purchaser fails to give any notice within the required time period, Purchaser will be   deemed to have elected to waive such matter and to proceed to Closing.       5.1.6 As used in this Section 5.1 and elsewhere in this Agreement, the phrase “to   Seller’s knowledge” or phrases of similar import mean and are limited to the actual current   knowledge of David Buck, Managing Director of Development of an affiliate of Seller, without   any independent investigation or inquiry having been made, and not to any constructive   knowledge of the foregoing individuals or of Seller or any investment advisor to Seller, any entity   that is a partner in such investment advisor, or any affiliates of any thereof, or to any officer,   agent, representative, or employee of Seller or such investment advisor, any such constituent   partner, or any such affiliate. Seller, during the term of this Agreement, agrees to notify Purchaser     

 

   16   ___________________________   Amazon.com Sale of 2020 Joe B. Jackson Parkway, Murfreesboro, Rutherford County, Tennessee   Purchase and Sale Agreement      in writing promptly in the event Seller obtains actual knowledge of any change affecting any such   representations or warranties.  Seller represents and warrants that David Buck is the Managing   Director of Development having ongoing responsibility with respect to the development of the   Property and this individual possesses comprehensive knowledge of the facts set forth in Section   5.1.      5.2 By Purchaser. Purchaser represents and warrants to Seller that:        5.2.1 Purchaser is a limited liability company, duly organized, validly existing and in   good standing under the laws of the State of its organization, and is or will as of Closing be,   authorized to do business in the State in which the Property is located, has duly authorized the   execution and performance of this Agreement, and such execution and performance will not   violate any material term of its certificate of incorporation or bylaws; or result in a breach of or   default under any document, instrument, order or agreement to which Purchaser is a party or by   which Purchaser is bound;        5.2.2 Purchaser is acting as principal in this transaction with authority to close the   transaction;        5.2.3 No petition in bankruptcy (voluntary or otherwise), assignment for the benefit of   creditors, or petition seeking reorganization or arrangement or other action under federal or state   bankruptcy laws is pending against or contemplated by Purchaser;        5.2.4 Intentionally Omitted;        5.2.5 Intentionally Omitted;        5.2.6 Unless otherwise disclosed to Seller in writing, neither Purchaser nor any affiliate   of Purchaser (excluding any indirect owners of Purchaser) is other than a citizen of, or   partnership, corporation or other form of legal person domesticated in, the United States of   America;        5.2.7 ERISA      (a) (i) the Property is not being acquired by or on behalf of an “employee   benefit plan” within the meaning of Section 3(3) of the Employee Retirement Income   Security Act of 1974, as amended (“ERISA”), or a “plan” within the meaning of Section   4975(e)(1) of the Code, which is subject to ERISA or section 4975 of the Code,   respectively (hereinafter referred to collectively as the “Plan”); and (ii) the assets being   used to acquire the Property or to otherwise discharge Purchaser’s obligations hereunder   are not “plan assets” within the meaning of Department of Labor Regulation section   2510.3-101, as modified by Section 3(42) of ERISA;       (b) Purchaser and all shareholders, members, partners and investors in   Purchaser are neither parties in interest, as described in section 3(14) of ERISA, nor   disqualified persons, as described in section 4975(e)(2) of the Code with respect to  any   Plan (other than a Plan maintained exclusively for the benefit of the employees of   Purchaser or Purchaser’s affiliates), which is an investor in or related to Seller;       

 

   17   ___________________________   Amazon.com Sale of 2020 Joe B. Jackson Parkway, Murfreesboro, Rutherford County, Tennessee   Purchase and Sale Agreement         (c) The transaction described in this Agreement does not constitute a   “prohibited transaction” within the meaning of either section 406 of ERISA or section   4975 of the Code, other than a transaction which is exempt from section 406 of ERISA   and section 4975 of the Code by virtue of  (i) a statutory or regulatory exemption granted   pursuant to section 408 of ERISA or (ii) the fact that the transaction described in this   Agreement complies with all conditions for exemptive relief contained in Prohibited   Transaction Exemption 84-14 granted by the U.S. Department of Labor (“PTE 84-14”);      (d) Purchaser shall not assign its interest hereunder to any person or entity   which does not expressly make this covenant and warranty for the benefit of Seller; and       (e) Purchaser covenants that in the event it determines that the   representations and warranties of Purchaser made in this Section 5.2.7 have ceased to be   accurate in any material respect, Purchaser shall notify Seller of such determination as   promptly as practicable and in any event within ten (10) days after such determination is   made; and        5.2.8 Neither Purchaser, nor any affiliate of Purchaser (excluding any indirect owners   of Purchaser), have engaged in any dealings or transactions, directly or indirectly (i) in   contravention of any U.S. international or other money laundering regulations or conventions,   including, without limitation, the United States Bank Secrecy Act, the United States Money   Laundering Control Act of 1986, the United States International Money Laundering Abatement   and Anti-Terrorist Financing Act of 2001, Trading with the Enemy Act (50 U.S.C. Section 1 et   seq., as amended), or any foreign asset control regulations of the United States Treasury   Department (31 CFR, Subtitle B, Chapter V, as amended) or any enabling legislation or executive   order relating thereto., Purchaser represents and warrants to, and covenants with Seller that (i)   neither Purchaser nor any affiliate of Purchaser (excluding any indirect owners of Purchaser),   currently are, or shall be at any time during the term hereof, in violation of Anti-Terrorism Laws,   including without limitation Executive Order No. 13224 on Terrorist Financing, effective   September 24, 2001, and regulations of the U.S. Treasury Department's Office of Foreign Assets   Control (OFAC) related to Specially Designated Nationals and Blocked Persons (SDN’s (OFAC   Regulations), and/or the USA Patriot Act; (ii) neither Purchaser, nor any affiliate of Purchaser   (excluding any indirect owners of Purchaser), is or shall be during the term hereof (1) a   Prohibited Person, and (2) a person or entity who is identified as or affiliated with a person or   entity designated as a terrorist, or associated with terrorism or money laundering pursuant to   regulations promulgated in connection with the USA Patriot Act; and (iii) Purchaser has taken   appropriate steps to understand its legal obligations under the Anti-Terrorism Laws and has   implemented appropriate procedures to assure its continued compliance with such laws.    Purchaser hereby agrees to defend, indemnify, and hold harmless Seller, it officers,   directors, agents and employees, from and against any and all claims, damages, losses, risks,   liabilities and expenses (including reasonable attorney's fees and costs) arising from or   related to any breach of the foregoing representations, warranties and covenants.         5.3 Broker. Seller and Purchaser each represents to the other that it has had no dealings,   negotiations, or consultations with any broker, representative, employee, agent or other intermediary in   connection with the Agreement or the sale of the Property except CB Richard Ellis (the “Broker”). Seller   and Purchaser agree that each will indemnify, defend and hold the other free and harmless from the     

 

   18   ___________________________   Amazon.com Sale of 2020 Joe B. Jackson Parkway, Murfreesboro, Rutherford County, Tennessee   Purchase and Sale Agreement      claims of any broker(s), representative(s), employee(s), agent(s) or other intermediary(ies) claiming to   have represented Seller or Purchaser, respectively, or otherwise to be entitled to compensation in   connection with this Agreement or in connection with the sale of the Property other than Broker. Broker   will be compensated by Seller pursuant to the terms of a separate agreement between Seller and Broker.   The terms and provisions of this paragraph shall survive Closing hereunder.      6. Costs and Prorations.      6.1 Seller's Costs. Seller will pay the following costs of closing this transaction:       6.1.1 The fees and disbursements of Seller's counsel;        6.1.2 The costs of releasing all liens, judgments, and other encumbrances that are to be   released and of recording such releases;       6.1.3 One half of the escrow and recording fees (other than fees for recording the   Assignment and Assumption of Tenant Lease and the Assignment and   Assumption of Master Lease) and costs due Title Company for its services;      6.1.4 Intentionally omitted;       6.1.5 The cost of a standard coverage ALTA leasehold owner’s title insurance policies,   without extended coverage, endorsement or amendment, in the amount of the   Purchase Price, issued in connection with this transaction, whether pursuant to   the Title Commitment or otherwise; and         6.1.6 The cost of the Survey.         6.2 Purchaser's Costs. Purchaser will pay the following costs of closing this transaction:      6.2.1 The fees and disbursements of its counsel, inspecting architect and engineer, if   any;        6.2.2 One half of the escrow and recording fees and costs due Title Company for its   services;        6.2.3 The cost of any loan title insurance policy;        6.2.4 All sales or use taxes relating to the transfer of personal property to Purchaser, if   any, and all transfer taxes associated with the transaction contemplated by this Agreement;      6.2.5 The cost of any title insurance in excess of the cost of a standard coverage ALTA   leasehold owner’s title insurance policies, without endorsement or amendment, in   the amount of the Purchase Price, issued in connection with this transaction,   whether pursuant to the Title Commitment or otherwise;       6.2.6 The cost to obtain the Updated Survey;      

 

   19   ___________________________   Amazon.com Sale of 2020 Joe B. Jackson Parkway, Murfreesboro, Rutherford County, Tennessee   Purchase and Sale Agreement         6.2.7 The cost of recordation of the Assignment and Assumption of Tenant Lease and   the Assignment and Assumption of Master Lease; and      6.2.8 Any other expense(s) incurred by Purchaser or its representative(s) in inspecting   or evaluating the Property or closing this transaction.       6.3 Prorations. Rents and any other amounts payable by Tenant, and, to the extent not   otherwise paid directly by the Tenant under the Tenant Lease, personal property taxes, installment   payments of special assessment liens, vault charges, sewer charges, utility charges and normally prorated   operating expenses actually collected, billed or paid as of the date of Closing shall be prorated as of the   date of Closing and be adjusted against the Purchase Price due at the Closing, provided that within sixty   (60) days after the Closing, Purchaser and Seller will make a further adjustment for such rents, taxes or   charges which may have accrued or been incurred prior to the date of Closing, but not collected or paid at   that date.  All prorations shall be based upon the actual number of days of ownership of the Property.        Seller shall be responsible for all leasing commissions and other leasing costs due and payable   prior to the Closing Date with respect to the Tenant Lease.  Purchaser shall be responsible for all leasing   commissions and other leasing costs attributable to any new leases executed on or after the Closing Date   or the renewal, extension or expansion of any existing lease after the Closing Date to the extent Purchaser   enters into any leasing agreement in which leasing commissions and other leasing costs are payable in   connection with the renewal, extension or expansion of any existing lease after the Closing Date.  Seller   represents and warrants that there are no leasing commissions or other leasing costs due and payable now   or in the future under any agreement to which Seller or any of its affiliates is a party with respect to the   Tenant Lease.  The terms and provisions of this section shall survive Closing hereunder.         6.4 Taxes. To the extent not otherwise paid directly by Tenant under the Tenant Lease,   general real estate taxes and special assessments relating to the Property payable during the year in which   Closing occurs shall be prorated as of the Closing Date.  If Closing shall occur before the actual taxes and   special assessments payable during such year are known, the apportionment of taxes shall be upon the   basis of taxes for the Property payable during the immediately preceding year, provided that, if the taxes   and special assessments payable during the year in which Closing occurs are thereafter determined to be   more or less than the taxes payable during the preceding year (after any appeal of the assessed valuation   thereof is concluded), Seller and Purchaser promptly (but in no event later than thirty (30) days after the   issuance of the tax bill for the year in which Closing occurs, except in the case of an ongoing tax protest)   shall adjust the proration of such taxes and special assessments, and Seller or Purchaser, as the case may   be, shall pay to the other any amount required as a result of such adjustment and this covenant shall not   merge with the Assignment and Assumption of Master Lease delivered hereunder but shall survive the   Closing.      6.5 In General. Any other expenses, charges and fees of Closing not otherwise specifically   allocated herein or incurred by a specific party, shall be borne by the parties in accordance with the   general custom and practice in the State and County in which the Property is situated, as applicable, or if   no such custom or practice exists they shall be borne equally between the parties. To the extent that the   Tenant Lease provide for any adjustment of previously paid estimated amounts of real estate tax or   operating expense reimbursements on a date subsequent to the Closing Date, Seller shall be entitled to   receive, or shall be responsible to pay, as the case may be (when such amounts are actually received or   payable by Purchaser), Seller’s pro rata share of any such adjusted amounts that are applicable to periods     

 

   20   ___________________________   Amazon.com Sale of 2020 Joe B. Jackson Parkway, Murfreesboro, Rutherford County, Tennessee   Purchase and Sale Agreement      ending prior to the Closing Date.  After Closing, Seller agrees to reasonably cooperate with Purchaser in   providing Purchaser access to Seller’s books and records relating to such adjustments under the Tenant   Lease so that Purchaser may adequately perform such adjustments.      6.6 Purpose and Intent. Except as expressly provided herein, the purpose and intent as to the   provisions of prorations and apportionments set forth in this Section 6 and elsewhere in this Agreement is   that Seller shall bear all expenses of ownership and operation of the Property and shall receive all income   therefrom accruing through 11:59 p.m. at the end of the day preceding the Closing and Purchaser shall   bear all such expenses and receive all such income accruing thereafter.      7. Damage, Destruction or Condemnation.      7.1 Material Event.  If, prior to Closing, any portion of the Property is destroyed or taken   under power of eminent domain which event (i) gives Tenant the right to terminate the Tenant Lease or   abate rent under the Tenant Lease temporarily or permanently, (ii) results in proceeds from condemnation   awards or casualty insurance policies that are insufficient to rebuild the improvements on the Property in   the manner which the improvements existed prior to such taking or casualty or (iii) result in a loss of   parking at the Property, Purchaser may elect to terminate this Agreement by giving written notice of its   election to Seller within ten (10) days after receiving notice from Seller of such destruction or taking.  If   Purchaser does not give such written notice within such ten (10) day period, this transaction shall be   consummated on the date and at the Purchase Price provided for in Section 2, and Seller will assign to   Purchaser (i) the insurance proceeds of any insurance policy(ies) payable to Seller and pay to Purchaser   the amount of any deductible under Seller’s insurance policy, if any, or (ii) Seller’s portion of any   condemnation award.      7.2 Immaterial Event.  Except upon the occurrence of a material event as set forth in Section   7.1 above, Purchaser shall close this transaction on the date and at the Purchase Price agreed upon in   Section 2, and Seller will assign to Purchaser (i) the insurance proceeds of any insurance policies payable   to Seller and pay to Purchaser the amount of any deductible under Seller’s insurance policy, if any, or (ii)   Seller’s portion of any condemnation award.        7.3 Termination and Return of Deposit.  If Purchaser elects to terminate this Agreement   pursuant to this Section 7, and if Purchaser is not, on the date of such election, in default under this   Agreement, Seller shall promptly direct the Title Company to return the Deposit to Purchaser, and neither   party shall have any further liability hereunder except for the obligations of Purchaser which survive the   termination of this Agreement.        8. Notices.       All notices or other communications hereunder shall be in writing and shall be deemed duly given   if addressed and delivered to the respective parties' addresses, as set forth below: (i) in person; (ii) by   Federal Express or similar overnight carrier service; (iii) mailed by certified or registered mail, return   receipt requested, postage prepaid or (iv) by facsimile transmission (with electronic confirmation)   followed by a notice set forth in (i), (ii) or (iii) above.  Such notices shall be deemed received upon the   earlier of receipt or, if mailed by certified or registered mail, three (3) days after such mailing.  Seller and   Purchaser may from time to time by written notice to the other designate another address for receipt of   future notices.        

 

   21   ___________________________   Amazon.com Sale of 2020 Joe B. Jackson Parkway, Murfreesboro, Rutherford County, Tennessee   Purchase and Sale Agreement      If to Seller:     c/o USAA Real Estate Company   9830 Colonnade Boulevard, Suite 600   San Antonio, TX 78230-2239   Attention: John Post   Telephone: (210) 641-8456   Facsimile: (210) 641-8463   Email: john.post@usrealco.com      with a copy to:      c/o USAA Real Estate Company   9830 Colonnade Boulevard, Suite 600   San Antonio, TX 78230-2239   Attention: Steven Waters, Esq.    Telephone: (210) 641-8414   Facsimile: (210) 579-6889   Email: steve.waters@usrealco.com            with a copy to:            Golden Steves Cohen & Gordon LLP         300 Convent Street, Suite 2600         San Antonio, Texas 78205         Attention: Andrew S. Cohen         Telephone: (210) 745-3745         Facsimile: (210) 745-3737         Email:  acohen@goldensteves.com      If to Purchaser:    c/o Cole Real Estate Investments, Inc.        2325 E. Camelback Road, Suite 1100   Phoenix, AZ  85016   Attention:  Daniel Haug                     Vice President, Legal Services   Telephone:  (602) 952-4488   Facsimile:   (480) 449-7012   Email:  dan.haug@colereit.com           with a copy to:            Morris, Manning & Martin, LLP        1600 Atlanta Financial Center        3343 Peachtree Road, N.E.        Atlanta, GA 30326        Attention:  Marc R. Bulson, Esq.        Telephone:  (404) 504-7783        Facsimile:  (404) 365-9532        Email:  mbulson@mmmlaw.com        

 

   22   ___________________________   Amazon.com Sale of 2020 Joe B. Jackson Parkway, Murfreesboro, Rutherford County, Tennessee   Purchase and Sale Agreement         Telephone and e-mail addresses are for informational purposes only.  Effective notice will be deemed   given only as provided above.      9. Closing and Escrow.      9.1 Conditions Precedent to Closing.      9.1.1 Purchaser's Conditions to Closing.  The obligation of Purchaser to purchase the   Property from Seller, and to perform the obligations required to be performed by Purchaser at the   Closing, are subject to each of the following conditions:      (i) Closing Documents.  Seller shall have tendered at Closing (or prior to   Closing as applicable) all Closing Documents set forth in Section 9.3 to which Seller is a   party.      (ii) Compliance with Agreement.  Seller shall have performed and complied   in all material respects with its covenants and obligations under this Agreement such that   any default or failure of performance of Seller as to which Purchaser has delivered   written notice to Seller shall be cured in all material respects prior to or at Closing.      (iii) Title Policy.  The Title Company shall be committed to issue the title   policy in accordance with Section 3.2.      9.1.2 Seller's Conditions to Closing.  The obligation of Seller to sell the Property to   Purchaser, and to perform the obligations required to be performed by Seller at the Closing, are   subject to each of the following conditions:      (i) Closing Documents.  Purchaser shall have tendered at Closing all   Closing Documents to which Purchaser is a party.      (ii) Compliance with Agreement.  Purchaser shall have performed and   complied in all material respects with its covenants and obligations under this Agreement   such that any default or failure of performance of Purchaser as to which Seller has   delivered written notice to Purchaser shall be cured in all material respects prior to or at   Closing.      9.1.3 Failure of Condition.  If any of the conditions precedent to Closing have not   occurred or been satisfied within the time periods and in accordance with the terms set forth   herein, then the party whose conditions to Closing have not been satisfied shall have the right to   terminate this Agreement by written notice to the other party, whereupon neither party shall have   any further rights or obligations hereunder and the Deposit shall be returned to Purchaser by the   Title Company (other than the obligations of either party that expressly survive termination of   this Agreement), unless the failure of condition is due to a default by one of the parties, in which   the non-defaulting party shall have those rights and remedies set forth in Section 10 hereof.  If the   transaction contemplated by this Agreement closes, the parties shall be deemed to have waived   any and all unmet or unsatisfied conditions, subject to Section 5.1.5 above.       

 

   23   ___________________________   Amazon.com Sale of 2020 Joe B. Jackson Parkway, Murfreesboro, Rutherford County, Tennessee   Purchase and Sale Agreement         9.2 Escrow Instructions. Upon execution of this Agreement, the parties shall deliver an   executed counterpart of this Agreement to the Title Company to serve as the instructions to the Title   Company as the escrow holder for consummation of the transaction contemplated herein. Seller and   Purchaser agree to execute such additional and supplementary escrow instructions as may be appropriate   to enable the Title Company to comply with the terms of this Agreement; provided, however, that in the   event of any conflict between the provisions of this Agreement and any supplementary escrow   instructions, the terms of the Agreement shall prevail.      9.3 Seller's Deliveries. Unless otherwise specified, Seller shall deliver either at the Closing or   by making available at the Property, as appropriate, the following original documents (the “Closing   Documents”), each executed and, if required, acknowledged:        9.3.1 Intentionally omitted;      9.3.2 A bill of sale for the Property in the form attached hereto as Exhibit 9.3.2   conveying the Personal Property;        9.3.3 An original, or to the extent an original is not available, a copy of the Leases and   Contracts;        9.3.4 (A) An assignment and assumption agreement of the Tenant Lease and   Warranties in the form attached hereto as Exhibit 9.3.4(A) (the “Assignment and Assumption   of Tenant Lease”) and (B) an assignment and assumption of the Master Lease in the form   attached hereto as Exhibit 9.3.4(B) (the “Assignment and Assumption of Master Lease”);        9.3.5 An assignment of contracts assigning Seller’s right, title and interest in, to and   under the Contracts and the Approvals in the form attached hereto as Exhibit 9.3.5 (the   “Assignment and Assumption of Contracts”);        9.3.6 All books and records at the Property held by or for the account of Seller,   including without limitation, plans and specifications, as available;        9.3.7 An affidavit pursuant to the Foreign Investment and Real Property Tax Act in the   form attached hereto as Exhibit 9.3.7;        9.3.8 An incumbency affidavit in the form attached hereto as Exhibit 9.3.8;         9.3.9  The Estoppels in accordance with the terms of Section 3.7 (unless waived by   Purchaser pursuant to the terms of Section 3.7);         9.3.10 A tenant notice letter for the Property in the form attached hereto as Exhibit   9.3.10;         9.3.11 A notice letter to The Industrial Development Board of Rutherford County,   Tennessee (the “IDB”) and Rutherford County, Tennessee regarding Seller’s assignment of the   PILOT Agreement to Purchaser;           

 

   24   ___________________________   Amazon.com Sale of 2020 Joe B. Jackson Parkway, Murfreesboro, Rutherford County, Tennessee   Purchase and Sale Agreement        9.3.12 A notice letter to the IDB regarding Seller’s assignment of the Master Lease to   Purchaser; and       9.3.13 Such affidavits, indemnities and other deliveries as are reasonably required by   the Title Company to deliver the title policy, executed by Seller.      9.4 Purchaser's Deliveries. At the Closing, Purchaser shall (i) deposit with the Title Company   the Purchase Price; and (ii) execute the agreements referred to in Sections 9.3.4 and 9.3.5.       9.5 Insurance. Seller shall terminate its policies of insurance as of noon on the date of   Closing, and Purchaser shall be responsible for obtaining its own insurance thereafter.      9.6 Possession. Purchaser shall be entitled to possession of the Property upon conclusion of   the Closing, subject to the Leases and the Permitted Encumbrances.      9.7 Post-Closing Collections. Purchaser shall use its best efforts during the six (6) month   period immediately following Closing to collect and promptly remit to Seller rents or other amounts due   Seller for the period prior to Closing. Purchaser shall apply such rents or other amounts received, first for   the account of Purchaser for amounts currently due to Purchaser; second, for the account of Purchaser for   delinquent amounts due to Purchaser, and third, to Seller for any and all amounts due to Seller for periods   prior to Closing; and the balance to be retained by Purchaser.      10. Default; Failure of Condition.      10.1 PURCHASER DEFAULT. IF PURCHASER SHALL BECOME IN BREACH OF   OR DEFAULT UNDER THIS AGREEMENT AND THE BREACH OR DEFAULT CONTINUES   BEYOND THE EXPIRATION OF THE CURE PERIOD, IF ANY, PROVIDED IN SECTION 11.6   HEREOF, SELLER SHALL ELECT AS ITS SOLE REMEDY HEREUNDER TO (A)   TERMINATE THIS AGREEMENT WHEREIN THE DEPOSIT SHALL BE RETAINED BY   SELLER AS LIQUIDATED DAMAGES, AND BOTH PARTIES SHALL BE RELIEVED OF   AND RELEASED FROM ANY FURTHER LIABILITY HEREUNDER EXCEPT FOR THE   INDEMNIFICATION OBLIGATIONS OF PURCHASER PURSUANT TO SECTION 3.1.7   HEREOF AND THE PAYMENT OF LEGAL FEES IN CONNECTION WITH ANY   ENFORCEMENT OF SUCH INDEMNIFICATION OBLIGATIONS PURSUANT TO SECTION   11.9 HEREOF; OR (B) WAIVE THE DEFAULT, PRIOR TO OR AT THE CLOSING, AND   PROCEED TO CLOSE THE TRANSACTION CONTEMPLATED HEREBY IN ACCORDANCE   WITH THE REMAINING TERMS HEREOF. SELLER AND PURCHASER AGREE THAT THE   DEPOSIT IS A FAIR AND REASONABLE AMOUNT TO BE RETAINED BY SELLER AS   AGREED AND LIQUIDATED DAMAGES IN LIGHT OF SELLER'S REMOVAL OF THE   PROPERTY FROM THE MARKET AND THE COSTS INCURRED BY SELLER AND SHALL   NOT CONSTITUTE A PENALTY OR A FORFEITURE.      /s/ TW__________________    /s/ JP_________________   Purchaser's       Seller's Initials      10.2 SELLER DEFAULT. IF SELLER SHALL BECOME IN BREACH OR DEFAULT   UNDER THIS AGREEMENT AND THE BREACH OR DEFAULT CONTINUES BEYOND THE   EXPIRATION OF THE CURE PERIOD, IF ANY, PROVIDED IN SECTION 11.6 HEREOF,     

 

   25   ___________________________   Amazon.com Sale of 2020 Joe B. Jackson Parkway, Murfreesboro, Rutherford County, Tennessee   Purchase and Sale Agreement      PURCHASER MAY, AS PURCHASER’S SOLE OPTION, ELECT EITHER TO:  (I) BY   WRITTEN NOTICE TO SELLER AND THE TITLE COMPANY, CANCEL THIS   AGREEMENT WHEREUPON THE DEPOSIT SHALL BE PAID IMMEDIATELY BY THE   TITLE COMPANY TO PURCHASER, SELLER SHALL PROMPTLY REIMBURSE TO   PURCHASER ITS REASONABLE OUT-OF-POCKET AND THIRD-PARTY PROPERTY   DILIGENCE EXPENSES IN AN AMOUNT NOT TO EXCEED $55,000.00 AND, EXCEPT AS   OTHERWISE PROVIDED IN THIS AGREEMENT, NEITHER OF THE PARTIES SHALL   HAVE ANY FURTHER LIABILITY OR OBLIGATION HEREUNDER; OR, (II) EXTEND THE   DATE SCHEDULED FOR CLOSING FOR SUCH REASONABLE PERIOD OF TIME AS MAY   BE REQUIRED TO PERMIT SELLER TO CURE OR REMEDY SUCH BREACH IN   ACCORDANCE WITH SECTION 11.6; (III) WAIVE, PRIOR TO OR AT THE CLOSING, THE   APPLICABLE OBJECTION OR CONDITION AND PROCEED TO CLOSE THE   TRANSACTION CONTEMPLATED HEREBY IN ACCORDANCE WITH THE REMAINING   TERMS HEREOF; OR (IV) SEEK SPECIFIC PERFORMANCE OF SELLER’S OBLIGATIONS   HEREUNDER.  NOTWITHSTANDING THE FOREGOING, IF SPECIFIC PERFORMANCE IS   UNAVAILABLE AS A REMEDY TO PURCHASER BECAUSE OF SELLER’S AFFIRMATIVE   ACT OR INTENTIONAL OMISSION, PURCHASER SHALL BE ENTITLED TO PURSUE ALL   RIGHTS AND REMEDIES AVAILABLE AT LAW OR IN EQUITY; PROVIDED, IN ANY SUIT   FOR DAMAGES, SELLER SHALL NOT BE LIABLE TO PURCHASER FOR ANY SPECIAL   OR CONSEQUENTIAL DAMAGES. NOTWITHSTANDING THE FOREGOING, ANY   CONFLICT BETWEEN THE PROVISIONS OF THIS SECTION AND SECTION 5.1.5 WITH   REGARD TO A BREACH OF SELLER’S REPRESENTATIONS OR WARRANTIES SHALL BE   RESOLVED BY THE PROVISIONS OF SECTION 5.1.5.      10.3 Waiver of Trial by Jury. The respective parties hereto shall and hereby do waive trial by   jury in any action, proceeding or counterclaim brought by either of the parties hereto against the other on   any matters whatsoever arising out of or in any way connected with this Agreement, or for the   enforcement of any remedy under any statute, emergency or otherwise.      10.4 Limited Liability. The obligations of Seller are binding only on Seller’s interest in the   Property and any other assets of Seller and shall not be personally binding upon, nor shall any resort be   had to, the private properties of any of the partners, officers, directors, shareholders or beneficiaries of   Seller, or of any partners, officers, directors, shareholders or beneficiaries of any partners of Seller, or of   any of Seller's employees or agents. All documents executed by Seller shall be deemed to contain (even if   not expressly stated) the foregoing exculpation.      11. Miscellaneous.      11.1 Entire Agreement. This Agreement, together with the Exhibits attached hereto, all of   which are incorporated by reference, is the entire agreement between the parties with respect to the   subject matter hereof, and no alteration, modification or interpretation hereof shall be binding unless in   writing and signed by both parties.       11.2 Severability. If any provision of this Agreement or application to any party or   circumstances shall be determined by any court of competent jurisdiction to be invalid and unenforceable   to any extent, the remainder of this Agreement or the application of such provision to such person or   circumstances, other than those as to which it is so determined invalid or unenforceable, shall not be     

 

   26   ___________________________   Amazon.com Sale of 2020 Joe B. Jackson Parkway, Murfreesboro, Rutherford County, Tennessee   Purchase and Sale Agreement      affected thereby, and each provision hereof shall be valid and shall be enforced to the fullest extent   permitted by law.      11.3 Applicable Law. This Agreement shall be construed and enforced in accordance with the   laws of the State in which the Property is located.      11.4 Assignability. This Agreement may not be assigned by Seller without the prior written   consent of Purchaser which consent shall not be unreasonably withheld.  Purchaser may assign its rights   under this Agreement to an affiliate of Purchaser without seeking or obtaining Seller’s consent.  Such   assignment shall not become effective until the assignee executes an instrument whereby such assignee   expressly assumes each of the obligations of Purchaser under this Agreement, including specifically,   without limitation, all obligations concerning the Deposit.  Purchaser shall provide Seller a copy of any   such proposed assignment to an affiliate of Purchaser prior to Closing.  No assignment shall release or   otherwise relieve Purchaser from any obligations hereunder; provided, however, with respect to any   assignment, if Closing occurs the assigning party (but not the assignee) shall be relieved of all its   obligations arising under this Agreement before, on and after Closing provided, any such assignee shall   be deemed to have made any and all representations and warranties made by Purchaser hereunder, as if   the assignee were the original signatory hereto.        11.5 Successors Bound. This Agreement shall be binding upon and inure to the benefit of   Purchaser and Seller and their respective successors and permitted assigns.      11.6 Breach. Should either party be in breach of or default under or otherwise fail to comply   with any of the terms of this Agreement, the complying party shall have the option to cancel this   Agreement upon twenty (20) days written notice to the other party and such other party’s failure to cure   such breach within such twenty (20) day period. The date of Closing shall be extended to the extent   necessary to afford the defaulting party the full twenty-day period within which to cure such breach,   default or failure; provided, however, that the failure or refusal by a party to perform on the scheduled   date of Closing (except in respect of a Pending Default by the other party) shall be deemed to be an   immediate default without the necessity of notice or opportunity to cure; and provided further, that if the   date of Closing shall have been once extended as a result of default by a party, such party shall not be   entitled to any further notice or cure rights with respect to that or any other default. For purposes of this   Section 11.6, a "Pending Default" shall be a default for which (i) written notice was given by the non-   defaulting party prior to the Closing, and (ii) the cure period extends beyond the scheduled date of   Closing.       11.7 No Public Disclosure. Neither Seller nor Purchaser will release or cause or permit to be   released any press notices, or publicity (oral or written) or advertising promotion relating to, or otherwise   announce or disclose or cause or permit to be announced or disclosed, in any manner whatsoever, the   terms, conditions or substance of this Agreement without first obtaining the written consent of the other   party. The foregoing shall not preclude either party from discussing the substance or any relevant details   of such transactions with any of its attorneys, accountants, professional consultants, lenders, partners,   investors, or any prospective lender, partner or investor, as the case may be, or prevent either party hereto   from complying with laws, rules, regulations and court orders, including without limitation, governmental   regulatory, disclosure, tax and reporting requirements. Purchaser and Seller may disclose this transaction   or any aspect or information related to this transaction or disclosure or other notice as its attorneys deem   is reasonably necessary to comply with applicable law. In addition to any other remedies available to a     

 

   27   ___________________________   Amazon.com Sale of 2020 Joe B. Jackson Parkway, Murfreesboro, Rutherford County, Tennessee   Purchase and Sale Agreement      party, each party shall have the right to seek equitable relief, including without limitation, injunctive relief   or specific performance, against the other party in order to enforce the provisions of this Section 11.7.      11.8 Captions. The captions in this Agreement are inserted only as a matter of convenience   and for reference and in no way define, limit or describe the scope of this Agreement or the scope or   content of any of its provisions.      11.9 Attorneys' Fees. In the event of any litigation arising out of this Agreement, the   prevailing party shall be entitled to reasonable attorneys' fees and costs.      11.10 No Partnership. Nothing contained in this Agreement shall be construed to create a   partnership or joint venture between the parties or their successors in interest.      11.11 Time of Essence. Time is of the essence in this Agreement.      11.12 Counterparts. This Agreement may be executed and delivered in any number of   counterparts, each of which so executed and delivered shall be deemed to be an original and all of which   shall constitute one and the same instrument. Signatures hereon sent by facsimile or electronic mail may   be treated as original signatures, and any party so executing this Agreement agrees to deliver to the other   party “paper” originals of said signatures within two (2) business days after such transmission by   facsimile or electronic mail.      11.13 Recordation. Purchaser and Seller agree not to record this Agreement or any   memorandum hereof.      11.14 Proper Execution. The submission by Seller to Purchaser of this Agreement in unsigned   form shall be deemed to be a submission solely for Purchaser's consideration and not for acceptance and   execution. Such submission shall have no binding force and effect, shall not constitute an option, and   shall not confer any rights upon Purchaser or impose any obligations upon Seller irrespective of any   reliance thereon, change of position or partial performance. The submission by Seller of this Agreement   for execution by Purchaser and the actual execution and delivery thereof by Purchaser to Seller shall,   together with the Deposit, similarly have no binding force and effect on Seller unless and until Seller shall   have executed this Agreement and a fully executed counterpart thereof, together with the Deposit, shall   have been delivered to the Title Company.       11.15 Right of First Offer; Right of First Refusal. The parties acknowledge that the Property is   subject to (i) a right of first offer and (ii) a right of first refusal, in favor of Tenant as more particularly   described in the Tenant Lease. It shall be a condition precedent to Seller’s obligation to convey the   Property in accordance with this Agreement that Tenant shall have waived such rights or that Seller shall   have provided evidence that such rights have been deemed to have been waived by Tenant.  Said waivers   or such evidence (the “Waivers”) shall be in a form reasonably acceptable to Seller, Purchaser and the   Title Company (such that the Title Company, in accepting the Waiver, is willing to issue the Title Policy   not subject to such right of first offer or such right of first refusal in connection with the sale of the   Property to Purchaser).  Should Tenant exercise either its right of first offer or its right of first refusal, this   Agreement shall terminate, the Deposit shall be returned to Purchaser and Seller shall reimburse   Purchaser for its actual, out-of-pocket expenses relating to its investigation of the Property, not to exceed   $55,000.00. If Seller has not provided the required Waivers or received an election by Tenant to exercise   either such right, on or before two (2) business days prior to the Closing Date, then Seller shall have the     

 

   28   ___________________________   Amazon.com Sale of 2020 Joe B. Jackson Parkway, Murfreesboro, Rutherford County, Tennessee   Purchase and Sale Agreement      right to delay the Closing for up to thirty (30) days upon written notice to Purchaser delivered not less   than two (2) business days prior to the scheduled Closing Date; provided that Closing shall occur within   three (3) business days following delivery of the final Waivers and the Tenant Estoppel shall not be dated   more than 45 days prior to the Closing Date, as extended. If the foregoing requisite Waivers, Tenant   Estoppel and/or exercise of rights of first offer or first refusal are not delivered to Purchaser at least two   (2) business days prior to the Closing Date, as may have been delayed as provided above, then   Purchaser’s sole right with respect thereto shall be to elect to terminate this Agreement and the Deposit   returned to Purchaser, and Seller shall reimburse Purchaser for its actual, out-of-pocket expenses relating   to its investigation of the Property, not to exceed $55,000.00.      11.16 Committee Approval.  Intentionally omitted.      11.17 Effective Date Conditioned Upon Deposit. This Agreement shall become effective only   upon, and all time periods not otherwise expressly set forth shall commence to run, from the Effective   Date, only if the Deposit has been made.      11.18 Time to Execute and Deliver.  This Agreement shall be void if one fully executed copy is   not received by Seller, along with confirmation that this Agreement has been received by the Title   Company, on or before 9:00 p.m. C.S.T. on July 30, 2013 and that the Deposit has been received by the   Title Company on or before 5:00 p.m. C.S.T. on July 31, 2013.      11.19 Term Sheet.  The Term Sheet attached to this Agreement and incorporated by reference   herein sets forth the basic terms of the transaction for the benefit and convenience of the parties.    Notwithstanding the foregoing, to the extent of any conflict between the terms and provisions of this   Term Sheet and the Agreement, the terms and provisions of the Agreement shall govern and control.         11.20 No Recording. Neither this Agreement nor any memorandum or short form hereof shall   be recorded or filed in any public land or other public records of any jurisdiction, by either party and any   attempt to do so may be treated by the other party as a breach of this Agreement.       11.21 1031 Exchange. Either party may consummate the purchase and sale of the Property as   part of a so-called like kind exchange (the “Exchange”) pursuant to § 1031 of the Internal Revenue Code   of 1986, as amended (the “Code”), provided that: (i) the Closing shall not be delayed or affected by   reason of the Exchange nor shall the consummation or accomplishment of the Exchange be a condition   precedent or condition subsequent to either party’s obligations under this Agreement; (ii) the exchanging   party shall effect the Exchange through an assignment of this Agreement, or its rights under this   Agreement, to a qualified intermediary; (iii) the non-exchanging party shall not be required to take an   assignment of the Agreement for the relinquished property or be required to acquire or hold title to any   real property for purposes of consummating the Exchange; and (iv) the exchanging party shall pay any   additional costs that would not otherwise have been incurred by Purchaser or Seller had the exchanging   party not consummated this transaction through the Exchange. The non-exchanging party shall not, by   this Agreement or acquiescence to the Exchange, have its rights under this Agreement affected or   diminished in any manner or be responsible for compliance with or have any liability in connection with   or be deemed to have warranted that the Exchange in fact complies with § 1031 of the Code.      11.22 Calculation of Time Periods.  Unless otherwise specified, in computing any   period of time described herein, the date 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     

 

   29   ___________________________   Amazon.com Sale of 2020 Joe B. Jackson Parkway, Murfreesboro, Rutherford County, Tennessee   Purchase and Sale Agreement      such last day is a Saturday, Sunday or legal holiday for national banks in Phoenix, Arizona in which event   the period shall run until the end of the next day which is neither a Saturday, Sunday or legal holiday.    The last day of any period of time described herein shall be deemed to end at 5:00 p.m. Phoenix, Arizona   time.      11.23 Simultaneous Closing.  The transaction contemplated by this Agreement shall be   subject and contingent upon US Rio, LP (an affiliate of Seller) (“US Rio”) and Purchaser simultaneously   closing the transaction contemplated by that certain Purchase and Sale Agreement dated of even date   herewith between US Rio and Purchaser, which contract relates to the purchase of certain land and   improvements commonly known as the Amazon Fulfillment Center, located in the Meadowville   Technology Park, in Chesterfield County, Virginia (the “Related Transaction”), to the extent provided   below.  If US Rio is ready, willing and able to close the Related Transaction and Purchaser is obligated   pursuant to the Related Transaction to close but fails to so close the Related Transaction simultaneously   with the transaction contemplated by this Agreement, then Seller shall elect as its sole remedy hereunder   to (a) terminate this Agreement wherein the Deposit shall be retained by Seller as liquidated damages, and   both parties shall be relieved of and released from any further liability hereunder except for the   indemnification obligations of Purchaser pursuant to Section 3.1.7 hereof and the payment of legal fees in   connection with any enforcement of such indemnification obligations pursuant to Section 11.9 hereof; or   (b) waive the simultaneous close condition and proceed to close the transaction contemplated hereby in   accordance with the remaining terms hereof.  If either (1) Purchaser is not obligated pursuant to the   Related Transaction to close, or (2) Purchaser is ready, willing and able to close the Related Transaction   and US Rio fails to so close the Related Transaction simultaneously with the transaction contemplated by   this Agreement, then Purchaser shall elect as its sole remedy hereunder to (a) terminate this Agreement   whereupon the Deposit shall be returned to Purchaser, Seller shall promptly reimburse to Purchaser its   reasonable out-of-pocket and third-party property diligence expenses in an amount not to exceed   $50,000.00, and both parties shall be relieved of and released from any further liability hereunder except   for the indemnification obligations of Purchaser pursuant to Section 3.1.7 hereof and the payment of legal   fees in connection with any enforcement of such indemnification obligations pursuant to Section 11.9   hereof; or (b) waive the simultaneous close condition and proceed to close the transaction contemplated   hereby in accordance with the remaining terms hereof.        11.24 On-Going Warranty Work.  Seller shall repair or cause to be repaired, at no cost   to Purchaser, the items identified on Exhibit 11.24 attached hereto (the “Repairs”), subject to Purchaser’s   reasonable approval.  Except for the Warranty walk repair described in item (f) of Exhibit 11.24, Seller   acknowledges and agrees that any amounts expended in connection with completing the Repairs shall not   reduce or otherwise be subject to the Claims Ceiling set forth in Section 5.1.4 herein.  After Closing,   Seller, its contractor and their respective agents and employees shall have reasonable access to the Land   (subject to the rights of Tenant under the Tenant Lease) as may be necessary to complete the Repairs.    Seller covenants to complete all Repairs on or before December 31, 2013.  The provisions of this Section   11.24 shall survive Closing.      11.25 Economic Development Incentives.  Seller expressly acknowledges and agrees   that Seller shall cooperate reasonably, at the request of Tenant or the Local Taxing Authorities (as defined   in the Tenant Lease), with Tenant and Purchaser in good faith in satisfying Landlord’s PILOT   Responsibility (as defined in the Tenant Lease), and all reporting obligations required in connection with   the Economic Development Incentives or pursuant to any Economic Development Incentives Agreements   (as such terms are defined in the Tenant Lease), including, but not limited to, providing the Rutherford   County Assessor of Property (the “Assessor”) all information and documents necessary for the Assessor     

 

   30   ___________________________   Amazon.com Sale of 2020 Joe B. Jackson Parkway, Murfreesboro, Rutherford County, Tennessee   Purchase and Sale Agreement      to compute the in lieu of tax payments under the PILOT Agreement (as defined in the Tenant Lease).      The provisions of this Section 11.25 shall survive Closing.      11.26 Post Closing Agreement.  After Closing, Seller agrees to use commercially   reasonable efforts to deliver the following documentation to Purchaser, at no cost to Purchaser:  a copy of   the Engineer’s Certificate required in that certain Inspection and Maintenance Agreement for Private   Stormwater Management Facilities – Corporate and LLC dated November ____, 2012 certifying that the   stormwater management facilities were constructed in accordance with the Stormwater Maintenance Plan   (SWMP No. 11083 ST) (the “Plan”) and a copy of the such Plan.  The terms and provisions of this   Section 11.26 shall survive Closing.         [Signatures Appear on Following Page]     

 

   31   ___________________________   Amazon.com Sale of 2020 Joe B. Jackson Parkway, Murfreesboro, Rutherford County, Tennessee   Purchase and Sale Agreement         IN WITNESS WHEREOF, Purchaser and Seller have executed this Agreement on the date set   forth below, effective as of the date set forth above.         SELLER:      US REAL ESTATE LIMITED PARTNERSHIP,          a Texas limited partnership                 By:  USAA Real Estate Company,     a Delaware corporation,     its general partner         By:  /s/ John Post      Name:  John Post       Title:  Managing Director                Date:   July 30, 2013                  PURCHASER:     COLE CCIT ACQUISITIONS, LLC,   a Delaware limited liability company      By:  Cole Corporate Income Advisors, LLC,     a Delaware limited liability company,     its Manager         By:  /s/ Todd J. Weiss      Todd J. Weiss, Senior Vice President      Date:  July 30, 2013         An original, fully executed copy of this Agreement has been received by the Title Company's agent this   30th day of July, 2013, and by execution hereof the Title Company's agent hereby covenants and agrees   to be bound by the terms of this Agreement.       FIRST AMERICAN TITLE INSURANCE COMPANY         By:  /s/ Brandon Grajewski     Name:  Brandon Grajewski     Title:  Authorized Agent          

 

   32   ___________________________   Amazon.com Sale of 2020 Joe B. Jackson Parkway, Murfreesboro, Rutherford County, Tennessee   Purchase and Sale Agreement         Receipt of the Deposit of $690,500.00 acknowledged this 31st day of July, 2013.         FIRST AMERICAN TITLE INSURANCE COMPANY          By:  /s/ Brandon Grajewski     Name:  Brandon Grajewski     Title:  Authorized Agent        Receipt of the Independent Consideration of $100 acknowledged this 31st day of July, 2013.         FIRST AMERICAN TITLE INSURANCE COMPANY         By:  /s/ Brandon Grajewski     Name:  Brandon Grajewski     Title:  Authorized Agent

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