Document:

CCIT II EX 10.4 6/30/2014

Exhibit 10.4

PURCHASE AGREEMENT
AND ESCROW INSTRUCTIONS

Between

PLUMAS PINES GOLF COURSE, LP,
a California limited partnership

as Seller

and

ARCP ACQUISITIONS, LLC,
a Delaware limited liability company

as Buyer

May 2, 2014

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PURCHASE AGREEMENT AND ESCROW INSTRUCTIONS

		
	DATED:
	Dated to be effective as of May 2, 2014 (the “Effective Date”).

		
	PARTIES:
	This Purchase Agreement and Escrow Instructions is between PLUMAS PINES GOLF COURSE, LP, a California limited partnership, as “Seller”, and ARCP ACQUISITIONS, LLC, a Delaware limited liability company, as “Buyer”.

WHEREAS, as of the Effective Date, Seller is the fee title owner of that certain improved property located at 7628 Thorndike Road, Greensboro, North Carolina, as legally described on Exhibit A attached hereto (the “Real Property”);

WHEREAS, as of the Effective Date, the Real Property is improved with a building containing approximately 100,000 square feet (the “Building”) which Real Property and Building are leased to RF Micro Devices, Inc., a North Carolina corporation (“Tenant”), in accordance with a written Lease Agreement dated as of March 5, 2001, as amended by that certain Amendment to Lease Agreement dated February 26, 2014 (the “Lease Amendment” and, together with the Lease Agreement, hereinafter referred to as the “Lease”).  The Real Property, the Building, the improvements to the Real Property (the “Improvements”), the personal property, if any, of Seller located on the Real Property and Seller’s interest in the Lease and all rents issued and profits due or to become due thereunder are hereinafter collectively referred to as the “Property”; and

WHEREAS, Buyer desires to purchase the Property from Seller and Seller desires to sell the Property to Buyer free and clear of all liens, all as more particularly set forth in this Purchase Agreement and Escrow Instructions (the “Agreement”).

NOW THEREFORE, in consideration of the promises set forth in this Agreement and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Seller and Buyer (each, a “Party” and, collectively, the “Parties”) hereby agree as follows:

1.    INCORPORATION OF RECITALS.  All of the foregoing Recitals are hereby incorporated as agreements of the Parties.

2.    BINDING AGREEMENT.  This Agreement constitutes a binding agreement between Seller and Buyer for the sale and purchase of the Property subject to the terms set forth in this Agreement.  Subject to the limitations set forth in this Agreement, this Agreement shall bind and inure to the benefit of the Parties and their respective successors and permitted assigns.  This Agreement supersedes all other written or verbal agreements between the Parties concerning any transaction embodied in this Agreement.  No claim of waiver or modification concerning the provision of this Agreement shall be made against a Party unless based upon a written instrument signed by such Party.

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3.    INCLUSIONS IN PROPERTY.

(a)    The Property.  The term “Property” shall also include the following:

(1)    all tenements, hereditaments and appurtenances, if any, pertaining to the Real Property;

(2)    all mineral, water and irrigation rights of Seller, if any, running with or otherwise pertaining to the Real Property;

(3)    all interest, if any, of Seller in any road adjoining the Real Property;

(4)    all interest, if any, of Seller in any award made or to be made or settlement in lieu thereof for damage to the Property by reason of condemnation, eminent domain or exercise of police power;

(5)    all of Seller’s interest in the Building, the Improvements and any other improvements and fixtures on the Real Property;

(6)    all of Seller’s interest, if any, in any equipment, machinery and personal property on or used in connection with the Real Property to be conveyed on “as is” basis without warranty (the “Personalty”);

(7)    the Lease and security deposit, if any, now or hereafter due thereunder; and

(8)    all of Seller’s interest, to the extent transferable, in all permits and licenses (the “Permits”), warranties (the “Warranties”), contractual rights and intangibles (including rights to the name of the Improvements as well as all construction contracts, subcontracts, architectural/engineering plans and/or agreements and similar agreements) with respect to the design, development, construction, operation, maintenance, repair and/or improvement of the Property (collectively, the “Contracts”).  

(b)    The Transfer Documents.  The Personalty shall be transferred by that certain bill of sale from Seller to Buyer, a preliminary draft of which is attached hereto as Exhibit B (the “Bill of Sale”); the Lease shall be transferred by that certain assignment and assumption of lease, the agreed-upon form of which is attached hereto as Exhibit C (the “Assignment of Lease”); the Permits, Warranties and Contracts shall be transferred by that certain assignment and assumption agreement, a preliminary draft of which is attached hereto as Exhibit D (the “Assignment Agreement”); and the Real Property, the Building and the Improvements shall be transferred and conveyed by execution and delivery of Seller’s special warranty deed, a preliminary draft of which is attached hereto as Exhibit E (the “Deed”).  The Bill of Sale, the Assignment of Lease, the Assignment Agreement and the Deed are hereinafter collectively referred to as the “Transfer Documents”.  The final form and content of the Bill of Sale, the Assignment Agreement and the 

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Deed shall be agreed upon by the parties in good faith prior to the expiration of the Study Period (defined below). Notwithstanding the foregoing, in the event any Warranty transfer requires the approval of the applicable warrantor and/or satisfaction of any other conditions to such transfer, Seller shall obtain such approval and satisfy all such conditions no later than COE (as defined below), including, without limitation, payment of any fees relating thereto.

4.    PURCHASE PRICE.  The price to be paid by Buyer to Seller for the Property is FIFTEEN MILLION FIVE HUNDRED THOUSAND and NO/100 Dollars ($15,500,000.00) (the “Purchase Price”), payable as follows:

(a)    One Hundred Fifty Thousand and No/100 Dollars ($150,000.00) earnest money (said deposit, together with all interest earned or accrued thereon, the “Earnest Money Deposit”) to be deposited in escrow with First American Title National Commercial Services, The Esplanade Commercial Center, 2425 E. Camelback Road, Suite 300, Phoenix, Arizona 85016, Attention: Brandon Grajewski (“Escrow Agent”) not later than three (3) business days following the receipt by Escrow Agent of a fully-executed original of this Agreement (said receipt by Escrow Agent of both a fully-executed original of this Agreement and the Earnest Money Deposit, the “Opening of Escrow”), which Earnest Money Deposit is to be held by Escrow Agent until released to Seller or Buyer as provided herein or paid to Seller at close of escrow (“COE”); 

(b)    forgiveness of all amounts due and payable pursuant to a loan, in the principal amount of Seven Million Five Hundred Thousand and No/100 Dollars ($7,500,000.00) and with the other terms set forth on Exhibit G hereto, which Buyer hereby agrees to make or cause to be made to Seller immediately prior to COE, subject to all closing conditions set forth in Section 12 of this Agreement having been satisfied, in order to enable Seller to refinance its mortgage indebtedness on the Property (“Seller’s Mortgage”); 

(c)    Fifty Thousand and No/100 Dollars ($50,000.00), to be deposited in escrow with Escrow Agent on or before COE, to be disbursed in accordance with the Post-Closing Escrow Agreement attached hereto as Exhibit H and being entered into simultaneous herewith;  and

(d)    the remainder in additional cash, or other immediately available funds (expected to be Seven Million Eight Hundred Thousand and No/100 Dollars ($7,800,000.00), as may be increased or decreased by such sums as are required to take into account any additional deposits, prorations, credits, or other adjustments required by this Agreement), to be deposited in escrow with Escrow Agent on or before COE, which sum is to be held by Escrow Agent until cancellation of this Agreement as provided herein or paid to Seller at COE.

The Purchase Price is based on a capitalization rate of 7.10% and an Annual Net Rent (as hereinafter defined) of $1,100,000.00 per annum.  If the Annual Net Rent on the date of COE is not the same, the Purchase Price shall be adjusted accordingly.

5.    DISPOSITION OF EARNEST MONEY DEPOSIT.  Seller and Buyer hereby instruct Escrow Agent to place the Earnest Money Deposit in a federally insured interest‐bearing 

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passbook account on behalf of Seller and Buyer.  The Earnest Money Deposit shall be applied as follows:

(a)    if Buyer cancels this Agreement while not in default, as Buyer is so entitled to do as provided in this Agreement, the Earnest Money Deposit shall be paid immediately to Buyer;

(b)    if the Earnest Money Deposit is forfeited by Buyer pursuant to this Agreement, such Earnest Money Deposit shall be paid to Seller as Seller’s agreed and total liquidated damages, it being acknowledged and agreed that it would be difficult or impossible to determine Seller’s exact damages; and

(c)    if escrow closes, the Earnest Money Deposit shall be credited to Buyer, automatically applied against the Purchase Price and paid to Seller at COE.

6.    PRELIMINARY TITLE REPORT AND OBJECTIONS.  (a)  Within ten (10) days after the Opening of Escrow, Escrow Agent shall deliver, at Buyer’s expense, a current Preliminary Title Report (the “Report”) for an ALTA extended coverage title insurance policy (the “Owner’s Policy”) on the Property to Buyer and Seller.  The Report shall show the status of title to the Property as of the date of the Report and shall also describe the requirements of Escrow Agent for the issuance of the Owner’s Policy as described herein.  The cost of the Owner’s Policy and any additional costs for an extended coverage policy or endorsements thereto (excluding, however, those endorsements required to cure one or more Objectionable Matters (as hereinafter defined), which endorsements shall be issued at Seller’s sole cost and expense), shall be paid by Buyer.   In addition to the Report, Escrow Agent shall simultaneously deliver to Buyer legible copies of all documents identified in Part Two of Schedule B of the Report.   In the event there are Objectionable Matters (as hereinafter defined), Seller shall have the option, at its election, of attempting to cure such matters in good faith (within the time limits permitted herein) in lieu of procuring and/or purchasing endorsements to the Owner’s Policy.  

(b)    If Buyer is dissatisfied with any exception to title as shown in the Report and/or any matter disclosed by the Survey other than Permitted Exceptions as defined below (collectively, the “Objectionable Matters”), then Buyer may either, by giving written notice thereof to Escrow Agent and Seller (i) on or before expiration of the Study Period (as defined below) or (ii) ten (10) days from Buyer’s receipt of the Report, whichever is later, (A) cancel this Agreement, whereupon the Earnest Money Deposit shall be returned to Buyer together with all documents deposited in escrow by Buyer, or (B) provisionally accept the title subject to Seller’s agreement, at its election, to cause the removal of or otherwise cure the Objectionable Matters, in which case Seller shall (at its sole cost) remove or otherwise cure the Objectionable Matters before COE, unless extended under Section 6(d)(ii) below.  Seller shall notify Buyer in writing within five (5) days after receiving Buyer’s written notice of disapproval or objection, if Seller does not intend to remove (or cause the Escrow Agent to endorse over, to Buyer’s satisfaction) or otherwise cure any such Objectionable Matters.   Seller shall not have any obligation to cure any Objectionable Matters or expend any sums in connection therewith, and Seller’s lack of response shall be deemed as Seller’s refusal to remove or otherwise cure the Objectionable Matters prior to COE.  If written notice of dissatisfaction is not timely given by Buyer to Seller pursuant to this Section 6, then Buyer shall 

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be deemed to have approved of the condition of the title of the Property as shown by the Report, and shall have elected to continue and ratify this Agreement, whereupon the Earnest Money Deposit shall thereafter be non-refundable to Buyer, except as set forth in 6(c) or for Seller default.  As used herein, the term “Objectionable Matters” shall automatically include any monetary lien or judgment affecting the Property incurred through Seller (irrespective of whether written objection is tendered), but shall not include the Permitted Exceptions.  As used in this Agreement “Permitted Exceptions” shall include the following matters: (i) the lien of ad valorem taxes and special assessments not yet due and payable; (ii) outstanding mineral rights and reservations that may appear of record; and (iii) any matter revealed by the Report and Survey that are not objected to by Buyer within the time frames permitted herein for the making of such objections.  

(c)    In the event the Report is amended to include new exceptions that are not set forth in a prior Report, Buyer shall have until the later of (i) the expiration of the Study Period, or (ii) the date that is five (5) business days after Buyer’s receipt of the amended Report and copies of the documents identified in the new exceptions or new requirements, within which to cancel this Agreement and receive a refund of the Earnest Money Deposit or to provisionally accept the title subject to Seller’s agreement to cause the removal of or otherwise cure the Objectionable Matters.   Seller shall notify Buyer in writing within five (5) days after receiving Buyer’s written notice of disapproval or objection, if Seller does not intend to remove (or cause the Escrow Agent to endorse over, to Buyer’s satisfaction) or otherwise cure any such Objectionable Matters.  Seller’s lack of response shall be deemed as Seller’s refusal to remove or otherwise cure the Objectionable Matters prior to COE.  For the sake of clarification and the avoidance of doubt, the provisions of this Section 6(c) apply only to new matters or exceptions first appearing or delivered after the provision of the initial Report and shall not be deemed or construed to extend the time period for Buyer to object to any matters that were originally set forth in (or delivered in connection with) the original Report and Survey.   

(d)    (i) If Seller serves notice (or is deemed to give such notice) to Buyer that Seller does not intend to remove or otherwise cure the Objectionable Matters before COE, Buyer shall, within ten (10) days thereafter, notify Seller and Escrow Agent in writing of Buyer’s election to either (A) terminate this Agreement, whereupon the Earnest Money Deposit shall be returned to Buyer and all other obligations under this Agreement shall terminate, or (B) Buyer may waive such Objectionable Matters and the transaction shall close as scheduled.  

(ii)  If Seller agrees to remove or otherwise cure the Objectionable Matters, but fails or is unable to do so despite commercially reasonable, good faith efforts by the scheduled COE date, then: (A) Seller and Buyer may mutually agree, in writing, to extend the COE date (the “Extended COE Date”) for a mutually agreeable and reasonable time frame (not to exceed thirty (30) days unless otherwise agreed in writing) in order to allow Seller additional time to complete such cure and/or removal; (B) Buyer may terminate this Agreement, whereupon the Earnest Money Deposit shall be returned to Buyer, as its sole remedy, and all other obligations under this Agreement shall terminate; or (C) Buyer may waive such Objectionable Matters whereupon the transaction shall close five (5) business days after Buyer notifies Seller of such election.   In the event that Seller and Buyer agree to exercise the extension described in (A) above, and Seller is not able to cure the defects by the Extended COE Date, then Seller shall not be in default, but Buyer shall have 

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the right to terminate this Agreement and immediately receive a full refund of the Earnest Money Deposit or again have the right, at its election to waive such Objectionable Matters and proceed to closing within five (5) business days.

If written notice of Buyer’s election is not timely given by Buyer pursuant to the foregoing paragraphs, then Buyer shall be deemed to have elected to terminate this Agreement as set forth in such sentence.

7.    BUYER’S STUDY PERIOD.

(a)    The Study Period.  Buyer shall have until 11:59 p.m. MST on the thirtieth (30th) day after the Effective Date (the “Study Period”), at Buyer’s sole cost, within which to conduct and approve any investigations, studies or tests deemed necessary by Buyer, in Buyer’s sole discretion, to determine the feasibility of acquiring the Property, including, without limitation, Buyer’s right to:  (i) review and approve the Survey, the Lease, Seller’s operating statements with respect to the Property, and the Contracts; (ii) meet and confer with Tenant (subject to the notice requirement set forth in Section 7(b) below); and, (iii) obtain, review and approve an environmental study of the Real Property and Building, all of the foregoing at Buyer’s expense (collectively, “Buyer’s Diligence”).
  
(b)    Right of Entry.  Subject to the prior rights of the Tenant in the Property, Seller hereby grants to Buyer and Buyer’s agents, employees and contractors the right to enter upon the Property, at any time or times prior to COE, to conduct Buyer’s Diligence, provided that Buyer shall provide to Seller a minimum of twenty-four (24) hours’ prior notice of any such entrance (in which event Seller shall notify Tenant within the same 24 hour period).  In consideration therefor, Buyer shall and does hereby agree to indemnify and hold Seller harmless from and against any and all claims for expenses, costs, losses, liabilities and/or damages asserted against Seller, including, but not limited to, court costs and attorneys’ fees, which may be incurred by Seller as a direct result of Buyer’s Diligence.  Buyer shall use commercially reasonable efforts to minimize any disruption of Tenant’s business operations at the Property throughout the duration of Buyer’s entrance upon the Property.  Buyer’s indemnity and hold harmless obligation shall survive cancellation of this Agreement or COE.  Buyer agrees to provide Seller with a copy of an insurance certificate evidencing its liability insurance coverage prior to entry onto the Property and to pay for all work, labor and services obtained by Buyer in connection with Buyer’s Diligence.  Buyer shall promptly repair or restore any damage to the Property resulting from any physical testing by Buyer.  Buyer’s access and inspection rights under this Section 7(b) through the date of COE shall not be deemed or construed to extend the Study Period or the time period for which Buyer may receive a refund of the Earnest Money Deposit. 

(c)    Cancellation.  Unless Buyer so notifies Seller or Escrow Agent, in writing, on or before the end of the Study Period of Buyer’s acceptance of Buyer’s Diligence and waiver of the contingencies as set forth in this Section 7, this Agreement shall be automatically canceled and the Earnest Money Deposit shall be returned immediately to Buyer and, except as otherwise provided in this Agreement, neither of the Parties shall have any further liability or obligation under this Agreement.

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(d)    Tenant Right of First Refusal or Right of First Offer.  Seller agrees and confirms that it has complied with its obligations related to Tenant’s right of first offer (“ROFO”) under Section 4 of the Lease Amendment and that Seller shall obtain from Tenant and provide to Buyer at least two (2) business days prior to the expiration of the Study Period, written evidence reasonably acceptable to Buyer of Tenant’s waiver of the ROFO.  In the event Seller fails to obtain and provide to Buyer such waiver, and Buyer terminates this Agreement as a result thereof, Seller shall not be in default, but shall promptly reimburse to Buyer all reasonable out-of-pocket and third-party property diligence expenses incurred by Buyer, including, without limitation, reasonable attorneys’ fees and costs (not to exceed $25,000.00 in the aggregate).  

8.    DELIVERY OF SELLER’S DILIGENCE MATERIALS.  

(a)    Deliveries to Buyer.  Subject to the provisions of 8(c), Seller agrees to deliver to Buyer within five (5) business days after the Effective Date all information in Seller’s possession or control relating to the leasing, operating, maintenance, construction (including the Certificate of Occupancy for the Property), repair, zoning (including any zoning verification letters), platting, engineering, soil tests, water tests, environmental tests, market studies, master planning, architectural drawings and like matters regarding the Property and/or the Tenant (collectively, “Seller’s Diligence Materials”), all at no cost to Buyer.  The foregoing deliveries shall include, but not be limited to, copies of all:  (i) books of account and records for the Property for the last twenty-four (24) months; (ii) the Lease, including all amendments thereto, guaranties thereof and assignments thereof and, to the extent the landlord is obligated to deliver such a policy to Tenant under the Lease, a copy of the leasehold title insurance policy; (iii) a detailed listing of all capital expenditures by Seller on the Property for the last thirty-six (36) months; (iv) the maintenance history of the Property for the last twenty-four (24) months; (v) current maintenance, management, and listing contracts for the Property including any amendments thereto; (vi) all claims or suits by Tenant or third parties involving the Property or the Lease or any Contracts (whether or not covered by insurance); (vii) a list of all claims or suits by or against Seller regarding the Property for the last thirty-six (36) months; (viii) any appraisals of the Property; (ix) the site plan with respect to, and a current survey of, the Property; (x) copies of all Contracts, Warranties and Permits; and (xi) any other documents or other information in the possession of Seller or its agents pertaining to the Property.   Should Seller receive new or updated information regarding any of the matters set forth in this Section 8(a) after the Effective Date and prior to COE, Seller will immediately notify Buyer of such fact and will promptly deliver complete copies thereof to Buyer.  Seller’s Diligence Materials are being provided on an “as is” basis for Buyer’s informational and evaluation purposes only, and Seller is not making any representations or warranties as to the accuracy of the information contained in the Due Diligence Materials except as set forth herein. 

(b)    Confidentiality of Materials.  Notwithstanding the foregoing, Buyer,  for itself, its agents, consultants and advisors, agrees (i) to keep all studies, reports, test results and other information concerning the Property furnished to or obtained by Buyer in connection with this Agreement (collectively, the “Confidential Information”) confidential and not to disclose or reveal any such Confidential Information to any person other than Buyer’s representatives (including, without limitation, attorneys, accountants and brokers), lenders and prospective lenders 

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who are actively and directly participating in the evaluation of the Property or who otherwise need to know the information for purposes of evaluating the Property; and (ii) not to use the Confidential Information for any purpose other than in connection with Buyer’s or its representative’s evaluation of the Property, and or the evaluation of the Property by Buyer’s lenders or prospective lenders; provided, however, the foregoing restrictions shall not prohibit a disclosure of the Confidential Information which is required by law, or in connection with any litigation or other proceeding pertaining to the Property and which either Seller or Buyer is a Party, or in connection with Buyer’s regular and established reporting activities with state and/or federal regulatory agencies (“Authorized Purposes”).   Buyer shall use the same duty of care with respect to safeguarding the Confidential Information as Buyer uses with respect to its own confidential information of a similar type and nature.  The Confidential Information shall not include any information that was, is, or becomes available to the public through means other than disclosure by Buyer.  The provisions of this Section 8(b) shall survive termination of this Agreement for a period of one (1) year, provided that the provisions of this Section 8(b) shall terminate and be of no further force and effect upon, from and after COE.  

(c)    Delivery and Return by Buyer.  Upon termination of this Agreement by Buyer as permitted under Section 7(a), Buyer shall promptly return all of Seller’s Diligence Materials; provided, however, Buyer will be entitled to retain one copy (the “Archived Copy”) of the Seller’s Diligence Materials for the Authorized Purposes, and Buyer will not be obligated to erase the Archived Copy provided that is stored in an secure computer system made in accordance with its security and/or disaster recovery procedures on the understanding that any such Archived Copy shall remain subject to the continued application of the provisions of this Agreement.   Further, if this Agreement is canceled for any reason, Buyer agrees to deliver to Seller upon payment by Seller to Buyer of Buyer’s cost thereof, copies of those investigations, studies and/or tests which Buyer may have elected to obtain.   If this Agreement is terminated due to Seller’s default, Seller shall pay to Buyer its reasonable and documented costs of such investigations, studies and tests as set forth in Section 20(a) below.

9.    THE SURVEY.  Promptly after the Opening of Escrow, Buyer, at its expense,  shall cause a surveyor licensed in the State of North Carolina to complete and deliver to Escrow Agent and Buyer a current, certified ALTA As-Built survey of the Real Property, Building and Improvements (the “Survey”).  The Survey shall set forth the legal description and boundaries of the Property and all easements, encroachments and improvements thereon.   To the extent the Survey description differs from the current record description, Buyer shall obtain assurances to its satisfaction that such Survey description can be insured prior to the expiration of the Study Period, and Seller shall only be obligated to warrant its current, record description in the Deed. 

10.    IRS SECTION 1445.  Seller shall furnish to Buyer in escrow by COE a sworn affidavit (the “Non-Foreign Affidavit”) stating under penalty of perjury that Seller is not a “foreign person” as such term is defined in Section 1445(f)(3) of the Internal Revenue Code of 1986, as amended (the “Tax Code”).  If Seller does not timely furnish the Non-Foreign Affidavit, Buyer may withhold (or direct Escrow Agent to withhold) from the Purchase Price, an amount equal to the amount required to be so withheld pursuant to Section 1445(a) of the Tax Code, and such withheld funds shall be deposited with the Internal Revenue Service as required by such Section 1445(a) and 

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the regulations promulgated thereunder.  The amount withheld, if any, shall nevertheless be deemed to be part of the Purchase Price paid to Seller.

11.    DELIVERY OF POSSESSION.  Seller shall deliver possession of the Property to Buyer at COE subject only to the rights of Tenant under the Lease as approved by Buyer as part of Buyer’s Diligence.

12.    BUYER’S CONDITIONS PRECEDENT.  In addition to all other conditions precedent set forth in this Agreement, Buyer’s obligations to perform under this Agreement and to close escrow are expressly subject to the following:

(a)    the delivery by Seller to Escrow Agent, for delivery to Buyer at COE, of the executed original Transfer Documents;

(b)    the issuance of the Owner’s Policy (or a written commitment therefor) subject only to the Permitted Exceptions;

(c)    the delivery by Seller to Buyer at COE of all security deposits and pre-paid/abated rents under the Lease, if any, in the form of a credit in favor of Buyer against the Purchase Price;

(d)    the deposit by Seller with Buyer not later than five (5) days prior to COE of  (i) an original estoppel certificate, in the form required by the Lease and dated not more than thirty (30) days prior to COE, executed by Tenant and naming Buyer (or its designee) as addressee and (x) verifying the basic facts of the Lease (term, rental, expiration date, options, if any exist), (y) confirming that there are no defaults by the landlord under the Lease, and no unpaid tenant improvement allowances or leasing commissions (except to the extent stated in the Lease Amendment further described in Section 24 hereof), and (z) if Tenant’s obligations under the Lease have been guaranteed by another person or entity, also cover such guaranty and also be signed by such guarantor(s), and (ii) if applicable, an original estoppel certificate executed by all other parties to any applicable reciprocal easement agreement or declaration of covenants, conditions and/or restrictions (the “REAs”) and addressed or certified to Buyer stating that such instrument is in full force and effect and is not modified (except as disclosed in such estoppel certificate) and, to the best knowledge of the party giving the estoppel, the other party or parties thereto is/are not in default under the applicable instrument and all amounts, if any, owing under the applicable agreement have been paid in full;

(e)    the deposit with Escrow Agent and Buyer prior to the expiration of the Study Period of an executed waiver by Tenant of any right of first refusal under the Lease;

(f)    the deposit with Escrow Agent of such executed affidavits of Seller and such other documentation as may be reasonably required by Escrow Agent to allow for the deletion of all standard exceptions from the Owner’s Policy, which can be deleted with the provision of a Seller’s title affidavit;

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(g)    the delivery by Seller to Buyer of the final Certificate of Occupancy for the Improvements;

(h)    the deposit with Escrow Agent of a letter from Seller to Tenant requesting that future rent under the Lease be paid to Buyer; 

(i)    Reserved.
(j)    there has been no “Insolvency Event” with respect to the Tenant.  As used in this subsection (j), an “Insolvency Event” shall have occurred if the Tenant becomes insolvent within the meaning of the United States Bankruptcy Code, 11 U.S.C. Sec. 101 et seq., as amended (the “Bankruptcy Code”), files or notifies Seller or any affiliate of Seller that it intends to file a petition under the Bankruptcy Code, initiates a proceeding under any similar law or statute relating to bankruptcy, insolvency, reorganization, winding up or adjustment of debts (collectively, hereinafter, an “Action”), becomes the subject of either a petition under the Bankruptcy Code or an Action, or is not generally paying its debts as the same become due;

(k)    delivery to Buyer of the original, fully-executed Lease (or a conformed copy certified by Tenant to be true and correct), and a copy of all guaranties thereof, all exhibits, amendments and other modifications thereto, and, if Seller is not the original landlord under the Lease, all assignments necessary to establish that Seller is the successor-in-interest to the landlord’s rights under the Lease (or, in the alternative, Tenant’s acknowledgment and recognition of Seller as the current Landlord pursuant to an estoppel certificate or other evidence reasonably acceptable to Buyer); and
(l)    delivery to Buyer of originals of the Contracts, Warranties and Permits, if any, in the possession of Seller or Seller’s agents, including, without limitation, any warranties covering the roof or any other part of the Improvements, and any correspondence with respect thereto, together with such non-proprietary leasing and property manuals, files and records which are material in connection with the continued operation, leasing and maintenance of the Property.  

If the foregoing conditions have not been satisfied by the specified date or COE as the case may be, then Buyer shall have the right, at Buyer’s sole option, by giving written notice to Seller and Escrow Agent, to (i) cancel this Agreement, whereupon the Earnest Money Deposit shall be paid immediately by Escrow Agent to Buyer and, except as otherwise provided in this Agreement, neither of the Parties shall have any further liability or obligation under this Agreement, or (ii) extend such specified date or COE, as applicable, for such amount of time as Buyer deems reasonably necessary to allow Seller to satisfy such conditions (provided, however, in the event that failed condition is one for which Buyer is the primary, responsible party, any extension of the Closing Date shall not exceed thirty (30) days without the prior, written consent of Seller).  Further, both Buyer and Seller agree to use commercially reasonable efforts to satisfy all conditions precedent to their respective obligations to consummate the transaction contemplated by this Agreement.  

13.    SELLER’S REPRESENTATIONS WARRANTIES AND COVENANTS.  

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(a)    Seller hereby represents and warrants to Buyer as of the Effective Date and again as of COE that:

(i)    there are no unrecorded leases (other than the Lease), liens or encumbrances which may affect title to the Property; any existing financing secured by the Property or any part thereof shall be satisfied and discharged in full at or prior to COE and any liens or encumbrances relating thereto shall be terminated and released of record at or prior to COE; and Seller does not have any defeasance, lender approval or prepayment obligations with respect to any existing financing which are reasonably anticipated to delay the COE;

(ii)    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;

(iii)    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;

(iv)    to Seller’s knowledge, there is no impending or contemplated condemnation or taking by inverse condemnation of the Property, or any portion thereof, by any governmental authorities;

(v)    there are no suits or claims pending or to Seller’s knowledge, threatened with respect to or in any manner affecting the Property or the Tenant, nor does Seller know of any circumstances which should or could reasonably form the basis for any such suits or claims which have not been disclosed in writing to Buyer by Seller;

(vi)    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, or any portion thereof, to a third party (except for the ROFR set forth in the Lease);

(vii)    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 after due inquiry, there are no pending proceedings, the object of which would be to change the present zoning or other land‐use limitations;

(viii)    this transaction will not in any way violate any other agreements to which Seller is a party (or, in the alternative, necessary consents and approvals will be obtained prior to COE);

(ix)    Seller has full power and authority to execute, deliver and perform under this Agreement as well as under the Transfer Documents;

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(x)    no default of Seller exists under the Lease; Seller has sent no written notice of default to Tenant and, to Seller’s knowledge, no default of Tenant exists under the Lease; Subsequent to the date of the First Amendment, Seller has not received any new and/or subsequent notice or correspondence from Tenant or Tenant’s agents indicating Tenant’s desire, willingness or intent to amend, modify, assign or terminate the Lease nor any notice or correspondence requesting the consent of Seller to any of the foregoing;

(xi)    The First Amendment provides for total annual base rent (the “Annual Net Rent”) for the first year of the extended Lease term commencing April 1, 2014 is $1,100,000.00 ($11.00 per square foot based on 100,000 square feet); Tenant is not entitled to any free rent periods or rental abatements, concessions or other inducements for any period subsequent to COE, except for the Tenant Improvement Allowance provided for under the Lease Amendment;

(xii)    to Seller’s knowledge, the Lease was negotiated in an arms-length transaction; 

(xiii)    all amounts due and payable by Seller under the Contracts and the REAs have been paid in full and no default of Seller exists under any of the Contracts or any of the REAs and, to Seller’s knowledge after due inquiry, no default of any other party exists under any of the Contracts or any of the REAs;

(xiv)    Except as expressly stated elsewhere in this Agreement, no consent of any third party is required in order for Seller to enter into this Agreement and perform Seller’s obligations hereunder;

(xv)    except as set forth in Seller’s Diligence Materials, Seller has no actual knowledge that there exists or has existed, and Seller itself has not caused any generation, production, location, transportation, storage, treatment, discharge, disposal, release or threatened release upon, under or about the Property of any Hazardous Materials.  “Hazardous Materials” shall mean any flammables, explosives, radioactive materials, hazardous wastes, hazardous and toxic substances or related materials, asbestos or any material containing asbestos (including, without limitation, vinyl asbestos tile), or any other substance or material, defined as a “hazardous substance” by any federal, state, or local environmental law, ordinance, rule or regulation including, without limitation, the Federal Comprehensive Environmental Response Compensation and Liability Act of 1980, as amended, the Federal Hazardous Materials Transportation Act, as amended, the Federal Resource Conservation and Recovery Act, as amended, and the rules and regulations adopted and promulgated pursuant to each of the foregoing;

(xvi)    except as set forth in Seller’s Diligence Materials, to Seller’s actual knowledge, there is not now, nor has there ever been, on or in the Property underground storage tanks, any asbestos-containing materials or any polychlorinated biphenyls, including those used in hydraulic oils, electric transformers, or other equipment;

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(xvii)    to Seller’s knowledge, there are no proceedings pending for the increase of the assessed valuation of the Real Property;

(xviii)    the execution, delivery and performance of this Agreement and the Transfer Documents have not and will not constitute a breach or default under any other agreement, law or court order under which Seller is a party or may be bound; and

(xix)    Seller has not withheld any information within its possession or of which it is actually aware regarding the Property or any part thereof that would reasonably be considered by an experienced purchaser to be material to that purchaser’s decision to acquire the Property.

(b)    Further, Seller hereby covenants to Buyer as of the Effective Date that:

(i)    between the Effective Date and COE or earlier termination of this Agreement, 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 Buyer’s prior written consent;

(ii)    between the Effective Date and COE or earlier termination of this Agreement, Seller will not, without the prior written consent of Buyer, 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)    except for any item to be prorated or credited at COE in accordance with this Agreement (including, without limitation, the Tenant Improvement Allowance), all bills or other charges, costs or expenses arising out of or in connection with or resulting from Seller’s use, ownership, or operation of the Property up to COE shall be paid in full by Seller (or paid by Tenant as required under the Lease);

(iv)    all general real estate taxes, assessments and personal property taxes that have become due with respect to the Property (except for those that will be prorated at COE) have been paid or will be so paid by Seller (or Tenant) prior to COE;

(v)    between the Effective Date and COE or any earlier termination of this Agreement, Seller shall not execute or enter into any lease with respect to the Property or any part thereof, or terminate, amend, modify, extend or waive any rights under the Lease without Buyer’s prior written consent, which consent may be withheld at Buyer’s sole discretion;

(vi)    between the Effective Date and COE or any earlier termination of this Agreement, Seller shall, at its sole cost:

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(1)    continue to operate (or cause the Tenant to operate) the Property as heretofore operated by Seller (or Tenant) subject to Buyer’s rights under this Agreement;

(2)    maintain, or cause Tenant to maintain, the Property in its current condition and perform required and routine maintenance and make replacements of each part of the Property that is tangible property (whether real or personal) and perform repairs or make replacements to any broken, defective or malfunctioning portion the Property that is tangible property (whether real or personal) as the relevant conditions require;

(3)    pay or cause Tenant to pay (as applicable) prior to COE, all sums due for work, materials or services furnished or otherwise incurred in the ownership, use or operation of the Property up to COE;

(4)    comply or cause Tenant to comply with all governmental requirements applicable to the Property;

(5)    except as required by a governmental agency or in connection with the presently ongoing Tenant Improvements pursuant to the First Amendment, not place or permit to be placed on any portion of the Property any new improvements of any kind or remove or permit any improvements to be removed from the Property without the prior written consent of Buyer;

(6)    without Buyer’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 the Property or any portion thereof that affects title thereto, or to allow any amendment or modification to any existing easements or encumbrances; and

(7)    not permit, acquiesce, consent to or waive any breach or default by Tenant of its  covenants and conditions of the Lease;

(vii)    Seller shall and hereby does assign to Buyer, effective as of COE, all claims, counterclaims, defenses, or actions, whether at common law, or pursuant to any other applicable federal or state or other laws which Seller may have against any third parties relating to the existence of any Hazardous Materials in, at, on, under or about the Property (including Hazardous Materials released on the Property prior to COE and continuing in existence on the Property at COE), although Seller shall have the benefit of any such claims, counterclaims, defenses or actions in connection with the performance and prosecution of its indemnity obligations that will survive closing, as may be set forth in this Agreement or in the Transfer Documents;

(viii)    Seller shall not, without the prior written consent of Buyer, provide a copy of, nor disclose any of the terms of, this Agreement to any appraiser, and Seller shall instruct 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 Buyer; and

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(ix)    should Seller receive notice or knowledge of any information regarding any of the matters set forth in this Section 13 after the Effective Date and prior to COE, Seller will immediately notify Buyer of the same in writing.

All representations, warranties and covenants made in this Agreement by Seller shall survive the execution and delivery of this Agreement and COE for a period of twelve (12) months following the date of COE (the “Survival Period”).   In the event a written claim is made within the Survival Period, the Survival Period shall not toll with respect to such claim while such claim is outstanding, subject to the next sentence.   Suit must be filed on a written claim hereunder within two (2) months after the expiration of the Survival Period (the “Claim Deadline”), and such suit must be diligently prosecuted thereafter, and such claim shall be deemed waived if it is not filed within the Claim Deadline or is not diligently prosecuted thereafter. 
        
The Parties specifically agree that the Property being conveyed hereunder is being sold in “as is, where is” condition, without any warranty, express or implied (excepting only such representations and warranties of Seller as are expressly set forth in this Agreement and in the Transfer Documents, as applicable).  The parties further agree that: (i) Buyer will have made prior to Closing any such inspections and investigations as it deems appropriate regarding the Property, the Assigned Contracts, the Improvements, the Permits, the Lease, the Tenant and any and all other matters which are material to Buyer's decision to purchase the Property; and (ii) Buyer is entering into this Agreement and will be purchasing the Property based solely on the investigations, examinations, business judgment and expertise of Buyer and Buyer’s consultants and contractors, and not, except as otherwise expressly stated in this Agreement or in the Transfer Documents, upon any alleged representations or warranties of Seller (or of any alleged agent of Seller) nor upon the completeness of any documents or disclosures made or provided by Seller (or any alleged agent of Seller) in respect of the Property, or any matter related to the Property. 

     Seller shall and does hereby indemnify against and hold Buyer harmless from any loss, damage, liability and expense, together with all court costs and attorneys’ fees which Buyer may incur, by reason of any material misrepresentation by Seller or any material breach of any of Seller’s warranties or covenants.  Seller’s indemnity and hold harmless obligations under this Section shall survive COE provided notice of claim is given during the Survival Period, and a Claim thereon is filed prior to the Claim Deadline. 

14.    BUYER’S REPRESENTATIONS WARRANTIES AND COVENANTS.  

(a)    Buyer hereby represents and warrants to Seller as of the Effective Date and again as of COE that:

(i)    Buyer has full power and authority to execute, deliver and perform under this Agreement as well as under the Transfer Documents;

(ii)    there are no actions or proceedings pending or to Buyer’s knowledge, threatened against Buyer which may in any manner whatsoever affect the validity or enforceability of this Agreement or any of the documents; and

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(iii)    the execution, delivery and performance of this Agreement and the Transfer Documents, have not and will not constitute a breach or default under any other agreement, law or court order under which Buyer is a party or may be bound.

(b)    Further, Buyer hereby covenants to Seller as of the Effective Date that:

(i)    should Buyer receive notice or knowledge of any information regarding any of the matters set forth in this Section 14 after the Effective Date and prior to COE, Buyer will promptly notify Seller of the same in writing.

All representations, warranties and covenants made in this Agreement by Buyer shall survive the execution and delivery of this Agreement and COE for the duration of the Survival Period (as defined above).  In the event a written claim is made within the Survival Period, the Survival Period shall not toll with respect to such claim while such claim is outstanding, subject to the next sentence.   Suit must be filed on a written claim hereunder within two (2) months after the expiration of the Survival Period, and such suit must be diligently prosecuted thereafter, and such claim shall be deemed waived if it is not filed within said two (2) month period or is not diligently prosecuted.  Buyer shall and does hereby indemnify against and hold Seller harmless from any loss, damage, liability and expense, together with all court costs and attorneys’ fees, if awarded by a court of law, which Seller may incur, by reason of any material misrepresentation by Buyer or any material breach of any of Buyer’s warranties or covenants.  Buyer’s indemnity and hold harmless obligations under this Section shall survive COE provided notice of claim is given during the Survival Period, and a Claim thereon is filed prior to the Claim Deadline. 

15.    RENTS AND DEPOSITS.  Seller and Buyer agree that, in addition to all other conditions and covenants contained herein, Seller shall deliver to Buyer and Escrow Agent not later than the day immediately prior to COE information, certified by Seller to be true and accurate as of the date thereof and as of the date of COE, with respect to (i) the amount of Tenant’s security deposit under the Lease, if any, and (ii) prepaid and/or abated rents, including, without limitation, the amount thereof and the date to which such rents have been paid.

16.    BROKER’S COMMISSION.  Concerning any brokerage commission, the Parties agree as follows:

(a)    the Parties warrant to one another that they have not dealt with any finder, broker or realtor in connection with this Agreement except Jesse Shannon of Branch Properties, LLC (“Broker”);

(b)    if any person shall assert a claim to a finder’s fee or brokerage commission on account of alleged employment as a finder or broker in connection with this Agreement (including Broker), the Party under whom the finder or broker is claiming shall indemnify and hold the other Party harmless from and against any such claim and all costs, expenses and liabilities incurred in connection with such claim or any action or proceeding brought on such claim, including, but not 

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limited to, counsel and witness fees and court costs in defending against such claim.  The provisions of this subsection shall survive cancellation of this Agreement or COE; and

(c)     Seller shall be responsible for payment of a commission to Broker pursuant to a separate written agreement between Seller and Broker, which commission shall be paid at COE.

(d)    Seller represents and warrants that it has paid in full the brokerage commission payable in connection with the Lease Amendment, and hereby agrees to hold Buyer harmless from and against any claim by any third party for a commission in connection with such transaction, including all costs, expenses and liabilities incurred in connection with such claim or any action or proceeding brought on such claim, including, but not limited to, counsel and witness fees and court costs in defending against such claim.  The provisions of this subsection shall survive cancellation of this Agreement or the COE.

17.    CLOSE OF ESCROW.  COE shall be on or before 5:00 p.m. MST on the tenth (10th) day after the expiration of the Study Period or such earlier date as Buyer may choose by giving not less than five (5) days prior written notice to Seller and Escrow Agent (the “Closing Date”).

18.    ASSIGNMENT.  This Agreement may not be assigned by Seller without the prior written consent of Buyer which consent shall not be unreasonably withheld.   Buyer may assign its rights under this Agreement to an affiliate of Buyer 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 Buyer under this Agreement.  Buyer may also designate someone other than Buyer, as grantee and/or assignee, under the Transfer Documents by providing written notice of such designation at least five (5) days prior to COE.  No assignment shall release or otherwise relieve Buyer from any obligations hereunder; provided, however, with respect to any assignment, if COE occurs the assigning party (but not the assignee) shall be relieved of all its obligations arising under this Agreement before, on and after COE.    

19.    RISK OF LOSS.  Seller shall bear all risk of loss resulting from or related to damage of or to the Property or any part thereof which may occur prior to COE, unless such loss is caused by the negligent acts and omissions of Buyer, its agents, consultants, contractors or designees through entry and inspection of the Property as part of Buyer’s due diligence (in which event the indemnity obligations of Section 7(b) shall apply).  Seller shall also bear all risk of loss resulting from or related to a taking or condemnation of the Property or any part thereof with respect to which written notice of a proposed condemnation or taking is received, a condemnation proceeding is commenced, a condemnation proceeding is concluded or all or any part of the Property is conveyed in lieu of condemnation prior to COE (any such damage, taking or condemnation event a “Risk of Loss Event”).  In the event of any Risk of Loss Event prior to COE, Buyer may, at Buyer’s sole option, by written notice to Seller and Escrow Agent, cancel this Agreement whereupon the Earnest Money Deposit shall be paid immediately by Escrow Agent to Buyer and, except as otherwise provided in this Agreement, neither of the Parties shall have any further liability or obligation hereunder.  In the alternative, Buyer may attempt to negotiate an appropriate downward adjustment of the Purchase Price.  If Seller and Buyer cannot agree upon such a downward adjustment within a reasonable period (not to exceed ten (10) days from the date Buyer receives notice of the loss) Buyer may 

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cancel this Agreement as provided above.  In the event of any Risk of Loss Event which does not result in a termination of this Agreement, Seller shall at COE and as a condition precedent thereto, pay Buyer or credit Buyer against the Purchase Price the amount of any insurance or condemnation proceeds, or assign to Buyer, as of COE and in a form acceptable to Buyer, all rights or claims for relief to the same, and credit to Buyer an amount equal to the deductible (if any) under the insurance policy.

20.    REMEDIES.

(a)    Seller’s Breach.  If Seller breaches this Agreement, including, without limitation, a breach of any representation or warranty of Seller set forth herein and/or the failure of Seller to satisfy any conditions precedent to COE specified in Section 12 above that are within Seller’s control, Buyer may, at Buyer’s sole option, either:  (i) by written notice to Seller and Escrow Agent, cancel this Agreement whereupon the Earnest Money Deposit shall be paid immediately by Escrow Agent to Buyer, Seller shall promptly reimburse to Buyer its reasonable, documented out-of-pocket and third-party property diligence expenses (not to exceed $75,000) 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 COE for such reasonable period of time as may be required to permit Seller to cure or remedy such breach (provided such period of time shall not exceed thirty (30) days unless such greater period of time is agreed to in writing by Seller); or (iii) seek specific performance against Seller in which event COE shall be automatically extended as necessary.  Notwithstanding the foregoing, if specific performance is unavailable as a remedy to Buyer because of Seller’s affirmative act or intentional omission, Buyer shall be entitled to pursue all rights and remedies available at law or in equity.  Seller hereby acknowledges and agrees that the provisions of this Section 20(a) shall not limit any rights or remedies Buyer may have against Seller after COE for any misrepresentation, breach of warranty or default by Seller in any of its obligations under this Agreement, the Transfer Documents or any other documents to be entered into pursuant to this Agreement, which survive Closing (provided that, with respect to any breach of Section 13 above by Seller, such claims are made within the Survival Period).  

(b)    Buyer’s Breach.  If Buyer breaches this Agreement, including, without limitation, a breach of any representation or warranty of Buyer set forth herein, Seller, as its sole remedy Seller shall be entitled to retain the Earnest Money Deposit in accordance with subsection 5(b) as Seller’s agreed and total liquidated damages.  Seller hereby waives any right to seek any equitable or legal remedies against Buyer; provided, that the foregoing, shall not limit or prescribe Seller’s right to seek damages and other relief in connection with Buyer’s indemnity obligations to Seller, including, without limitation, those indemnity obligations that survive termination of and/or closing under this Agreement (provided that, with respect to any breach of Section 14 above by Buyer, such claims are made within the Survival Period).   

21.    ATTORNEYS’ FEES.  If there is any litigation to enforce any provisions or rights arising under this Agreement, the unsuccessful party in such litigation, as determined by the court, agrees to pay the successful party, as determined by the court, all costs and expenses, including, but not limited to, reasonable attorneys’ fees incurred by the successful party, such fees to be determined by the court.  For purposes of this Section 21, a party will be considered to be the 

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“successful party” if (a) such party initiated the litigation and substantially obtained the relief which it sought (whether by judgment, voluntary agreement or action of the other party, trial, or alternative dispute resolution process), (b) such party did not initiate the litigation and either (i) received a judgment in its favor, or (ii) did not receive judgment in its favor, but the party receiving the judgment did not substantially obtain the relief which it sought, or (c) the other party to the litigation withdrew its claim or action without having substantially received the relief which it was seeking.

22.    NOTICES.

 (a)    Addresses.  Except as otherwise required by law, any notice required or permitted hereunder shall be in writing and shall be given by personal delivery, or by deposit in the U.S. Mail, certified or registered, return receipt requested, postage prepaid, addressed to the Parties at the addresses set forth below, or at such other address as a Party may designate in writing pursuant hereto, or telecopy (fax), or any express or overnight delivery service (e.g., Federal Express), delivery charges prepaid:

		
	If to Seller:
	c/o Branch Properties, LLC

3340 Peachtree Road, Suite 600
Atlanta, GA  30326
Attn:    Jesse Shannon
Tel.:    (404) 832-8928
Fax:    (404) 892-8898
Email:  jshannon@branchprop.com

With a copy to:                McCraney Coco & Lee, PLLC
800 Woodlands Parkway, Suite 107
Ridgeland, MS 39157
Attn:  R. Patrick McCraney, Esq.
Tel:  (601) 899-0065
Fax:  (866) 733-2008
Email:  Patrick@mccraneycoco.com

If to Buyer:                    ARCP Acquisitions, LLC
c/o American Realty Capital
1065 Avenue of the Americas
New York, NY  10018
Attn:    Paul Hughes, Esq.
Tel.:    (212) 217-6360
Fax:    (212) 217-6301
Email:  phughes@arlcap.com

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With a copy to:                ARCP Acquisitions, LLC
c/o American Realty Capital Properties, Inc.
2325 E. Camelback Road, Suite 1100
Phoenix, AZ  85016
Attn:    Tambre L. Ruud, Senior Paralegal
Tel.:    (602) 778-8700     
Fax:    (480) 449-7012
Email:  TRuud@arcpreit.com

		
	If to Escrow Agent:
	First American Title Insurance Company

2425 E. Camelback Road, Suite 400
Phoenix, AZ  85016
Attn:    Mr. Brandon Grajewski
Tel.:    (602) 567-8145
Fax:    (602) 567-8101    

(b)     Effective Date of Notices.  Notice shall be deemed to have been given on the date on which notice is delivered, if notice is given by personal delivery or telecopy, and on the date of deposit in the mail, if mailed or deposited with the overnight carrier, if used.  Notice shall be deemed to have been received (i) on the date on which the notice is received, if notice is given by telecopy or personal delivery, (ii) on the first business day following deposit with an overnight carrier, if used, and (iii) on the second (2nd) day following deposit in the U.S. Mail, if notice is mailed.  If escrow has opened, a copy of any notice given to a party shall also be given to Escrow Agent by regular U.S. Mail or by any other method provided for herein.

23.    CLOSING COSTS.

(a)    Closing Costs.  Seller and Buyer agree to pay closing costs as indicated in this Agreement and in the escrow instructions attached hereto as Exhibit F, and by this reference incorporated herein (the “Escrow Instructions”).  At COE, Seller shall pay (i) the costs of releasing all liens, judgments, and other encumbrances that are to be released and of recording such releases (unless incurred as a result of Buyer’s access, investigations and studies on or about the Property), (ii) one-half the fees and costs due Escrow Agent for its services, (iii) the transfer tax or excise tax associated with the sale of the Property, if any; and (iv) all other costs to be paid by Seller under this Agreement.  At COE, Buyer shall pay (i) one-half the fees and costs due Escrow Agent for its services, (ii) the cost of the Survey, (iii) the cost of the Report and the premiums for the title policies and endorsements requested by Buyer and its lender, if applicable; and (iv) all other costs to be paid by Buyer under this Agreement.  Except as otherwise provided for in this Agreement, Seller and Buyer will each be solely responsible for and bear all of their own respective expenses, including, without limitation, expenses of legal counsel, accountants, and other advisors incurred at any time in connection with pursuing or consummating the transaction contemplated herein.  Real estate taxes shall be prorated based upon the current valuation and latest available tax rates, unless Tenant is responsible for all such taxes in accordance with the provisions of the Lease.  All prorations shall be calculated through escrow as of COE based upon the latest available information, including, without limitation, a credit to Buyer for any rent prepaid by Tenant for the period beginning with 

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and including the date on which the closing occurs through and including the last day of the month in which the closing occurs.  All other credits and debits (e.g. in the event of prepaid utilities or expenses, if any, paid by Seller as landlord under the Lease) to Buyer shall be similarly prorated.  If COE is on or after the 20th day of the calendar month in which COE occurs, the monthly base rent due to Buyer under the terms of the Lease for the full calendar month of the month following the day on which COE occurs (the “Initial Rent”) shall be credited to Buyer at COE (and, in such event, Tenant shall pay the Initial Rent to Seller and, notwithstanding the terms of the Lease, shall not be obligated to make a payment for the Initial Rent to Buyer).  Any other closing costs not specifically designated as the responsibility of either Party in the Escrow Instructions or in this Agreement shall be paid by Seller and Buyer according to the usual and customary allocation of the same by Escrow Agent.  Seller agrees that all closing costs payable by Seller shall be deducted from Seller’s proceeds otherwise payable to Seller at COE.  Buyer shall deposit with Escrow Agent sufficient cash to pay all of Buyer’s closing costs.  Except as provided in this Section 23(a), Seller and Buyer shall each bear their own costs in regard to this Agreement.  

(b)    Post-Closing Adjustment.  If after COE, the parties discover any errors in adjustments and apportionments or additional information becomes available which would render the closing prorations inaccurate, the same shall be corrected as soon after their discovery as possible.  The provision of this Section 23(b) shall survive COE except that no adjustment shall be made later than twelve (12) months after COE unless prior to such date the Party seeking the adjustment shall have delivered a written notice to the other Party specifying the nature and basis for such claim; provided, however, in the event an adjustment is sought due to the fact that current tax bills with respect to the Property had not yet been issued as of COE, the provisions of this Section 23(b) shall survive with respect to any closing proration of real property taxes until thirty (30) days after Buyer’s receipt of tax bills for the period of time during which COE occurred.  In the event that such claim is valid, the Party against whom the claim is sought shall have ten (10) days in which to remit any adjustment due.

(c)    Instructions.  This Agreement, together with the Escrow Instructions, shall constitute escrow instructions for the transaction contemplated herein.  Such escrow instructions shall be construed as applying principally to Escrow Agent’s employment.

24.    TENANT IMPROVEMENT ALLOWANCE.  Buyer is hereby advised that the Lease Amendment (a true and correct copy of which will be provided to Buyer as part of Seller’s Diligence Materials, to the extent not previously provided) provides for a “Tenant Improvement Allowance” of Two Million and No/100 Dollars ($2,000,000.00) ($20.00 per square foot based on 100,000 rentable square feet) to be made available to Tenant on or before April 1, 2015.  At Closing, Buyer shall receive a credit against the Purchase Price in an amount equal to the total Tenant Improvement Allowance still outstanding, which is anticipated to be One Million and No/100 Dollars ($1,000,000.00).  At COE, Buyer shall assume all obligations under the Lease, as amended, arising from and after COE including, without limitation, the obligation to pay and/or reimburse to Tenant the undisbursed portion of Tenant Improvement Allowance, which is credited to Buyer at COE.    Buyer shall defend, indemnify and hold harmless Seller from any claims by Tenant relating to Seller’s failure to pay and/or reimburse the undisbursed portion of the Tenant Improvement Allowance from and after COE.  

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25.    ESCROW CANCELLATION CHARGES.  If escrow fails to close because of Seller’s default, Seller shall be liable for any cancellation charges of Escrow Agent.  If escrow fails to close because of Buyer’s default, Buyer shall be liable for any cancellation charges of Escrow Agent.  If escrow fails to close for any other reason, Seller and Buyer shall each be liable for one‐half of any cancellation charges of Escrow Agent.  The provisions of this Section shall survive cancellation of this Agreement.

26.    APPROVALS.  Concerning all matters in this Agreement requiring the consent or approval of any Party, the Parties agree that any such consent or approval shall not be unreasonably withheld unless otherwise provided in this Agreement.  

27.    RELEASES.  Except as expressly provided in this Agreement, Seller and anyone claiming through Seller hereby releases Tenant from any and all claims of whatever kind or nature, in law or equity, whether now known or unknown to Seller, whether contingent or matured, that Seller may now have or hereafter acquire against Tenant for any costs, loss, liability, damage, expenses, demand, action or cause of action arising from or related to the Lease arising from events occurring prior to COE. 

28.    ADDITIONAL ACTS.  The Parties agree to execute promptly such other documents and to perform such other acts as may be reasonably necessary to carry out the purpose and intent of this Agreement.

29.    GOVERNING LAW.  This Agreement shall be governed by and construed or enforced in accordance with the laws of the State of North Carolina.  

30.    CONSTRUCTION.  The terms and provisions of this Agreement represent the results of negotiations among the Parties, each of which has been represented by counsel of its own choosing, and neither of which has acted under any duress or compulsion, whether legal, economic or otherwise.  Consequently, the terms and provisions of this Agreement shall be interpreted and construed in accordance with their usual and customary meanings, and the Parties each hereby waive the application of any rule of law which would otherwise be applicable in connection with the interpretation and construction of this Agreement that ambiguous or conflicting terms or provisions contained in this Agreement shall be interpreted or construed against the Party whose attorney prepared the executed Agreement or any earlier draft of the same.

31.    TIME OF ESSENCE.  Time is of the essence of this Agreement.  However, if this Agreement requires any act to be done or action to be taken on a date which is a Saturday, Sunday or legal holiday, such act or action shall be deemed to have been validly done or taken if done or taken on the next succeeding day which is not a Saturday, Sunday or legal holiday, and the successive periods shall be deemed extended accordingly.

32.    INTERPRETATION.  If there is any specific and direct conflict between, or any ambiguity resulting from, the terms and provisions of this Agreement and the terms and provisions of any document, instrument or other agreement executed in connection herewith or in furtherance 

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hereof, including any Exhibits hereto, the same shall be consistently interpreted in such manner as to give effect to the general purposes and intention as expressed in this Agreement which shall be deemed to prevail and control.

33.    HEADINGS.  The headings of this Agreement are for reference only and shall not limit or define the meaning of any provision of this Agreement.  

34.    FAX AND COUNTERPARTS.  This Agreement may be executed by facsimile and/or in any number of counterparts.  Each party may rely upon any facsimile or counterpart copy as if it were one original document.

35.    INCORPORATION OF EXHIBITS BY REFERENCE.  All Exhibits to this Agreement are fully incorporated herein as though set forth at length herein.

36.    SEVERABILITY.  If any provision of this Agreement is unenforceable, the remaining provisions shall nevertheless be kept in effect.

37.    ENTIRE AGREEMENT.  This Agreement contains the entire agreement between the Parties and supersedes all prior agreements, oral or written, with respect to the subject matter hereof.  The provisions of this Agreement shall be construed as a whole and not strictly for or against any Party.

38.    INDEMNITY.     Seller shall indemnify, hold harmless and defend Buyer, Buyer’s affiliates, the partners, trustees, shareholders, directors, officers, attorneys, employees and agents of each of them, and their respective heirs, successors, personal representatives and assigns (collectively, the “Indemnified Parties”) from any and all demands, claims (including, without limitation, causes of action in tort), legal or administrative proceedings, losses, liabilities, damages, penalties, fines, liens, judgments, costs or expenses whatsoever (including, without limitation, attorneys’ fees and costs), whether direct or indirect, known or unknown, foreseen or unforeseen (collectively, “Claims”) that may arise on account of or in any way be connected with any actions, suits, proceedings or claims brought by third parties against Buyer (a) relating to any actual or alleged events, acts or omissions occurring with respect to the Property prior to COE, and/or (b) with respect to which the claimed loss, damage or injury occurred prior to COE.  Buyer shall indemnify, hold harmless and defend Seller, Seller’s affiliates, the partners, trustees, shareholders, directors, officers, attorneys, employees and agents of each of them, and their respective heirs, successors, personal representatives and assigns from any and all Claims that may arise on account of or in any way be connected with any actions, suits, proceedings or claims brought by third parties against Seller (y) relating to any actual or alleged events, acts or omissions occurring with respect to the Property from and after COE, and/or (z) with respect to which the claimed loss, damage or injury occurred from and after COE.  The provisions of this Section shall survive COE provided that written notice of a claim is made within the Survival Period and a formal Claim thereon is filed prior to the Claim Deadline.  

39.    SPECIAL INDEMNITY.     Seller and Buyer agree and acknowledge that at Seller’s request and pursuant to Section 4(b) hereof Buyer has agreed to make or cause to be made 

24

to Seller a loan to enable Seller to refinance a mortgage on the Property immediately prior to COE (the “Refinance Transaction”), and that in connection therewith Seller hereby agrees to (i) make Buyer whole for any reasonable, documented costs that Buyer would not have incurred under this Agreement, but for the Refinance Transaction, including any out-of-pocket expenses incurred by Buyer such as legal fees and recording fees and income or other taxes payable as a result of the Refinance Transaction and/or making of a mortgage loan to Seller, and (ii) indemnify, hold harmless and defend Buyer and other Indemnified Parties from all Claims that may arise on account of or in any way be connected with the Refinance Transaction, including any Claim by the holder of Seller’s Mortgage for additional consideration payable as a result of the prepayment of such debt (Seller’s obligations under items (i) and (ii) of this Section 39, collectively referred to as the “Special Indemnity”).  The provisions of this Section shall survive COE until the expiration of the applicable statutory period of limitations.  Seller hereby represents, warrants and covenants that Seller’s net worth is, and at all times while the provisions of this Section shall be in effect, shall be not less than $1,000,000.00.  

40.    PRIVILEGE TAXES.  Seller represents, warrants and covenants to Buyer that all state and local transaction privilege, sales, excise, use or similar taxes relating to the development, sale or rental of the Property (including, without limitation any speculative builder tax, owner-builder tax, or construction contractor tax) have been paid and Seller shall pay any such taxes that may arise as a result of the sale of the Property to Buyer as and when due.  Seller shall indemnify, hold harmless and defend the Indemnified Parties from any and all Claims relating to a breach of the preceding sentence.  The provisions of this Section shall survive COE.  

41.    TENANT AUDIT RIGHT.  In the event that Tenant has the right to inspect and audit the books, records and other documents of the landlord under the Lease which evidence the purchase price of the Real Property, the development and construction costs of the Improvements, and/or common area maintenance costs and expenses,  Seller hereby covenants and agrees that it shall retain such books, records and other documents which will enable Tenant to conduct a full and complete audit thereof until the date that is six (6) months after the latest date that Tenant could demand an inspection and/or audit thereof pursuant to the Lease and, upon written request therefore from Buyer, or any successor or assign, thereof, shall provide both Buyer and Tenant with reasonable access thereto and otherwise reasonably cooperate with both Buyer and Tenant with respect to such inspection and/or audit by Tenant.  In the event Tenant claims any right to a credit, refund or other reimbursement as a result of such audit, Seller shall indemnify, hold harmless and defend the Indemnified Parties from any and all Claims relating thereto or arising therefrom. The provisions of this Section shall survive COE.

[Signature Pages Follow]

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Exhibit 10.4

IN WITNESS WHEREOF, Seller and Buyer have executed this Agreement as of the Effective Date.

		
	SELLER:
	PLUMAS PINES GOLF COURSE, LP,

a California limited partnership

By:           /s/  Lynn Kirk                
Name:         Lynn Kirk                
Title:         General Partner            

		
	BUYER:
	ARCP ACQUISITIONS, LLC,

a Delaware limited liability company

By:     /s/  Todd J. Weiss            
Todd J. Weiss
Authorized Officer

26
RF Micro Devices
Greensboro, NCCCIT II EX 10.5 6/30/2014

Exhibit 10.5

PURCHASE AND SALE AGREEMENT AND JOINT ESCROW INSTRUCTIONS
[945 Monument Drive, Lebanon, Indiana]

ARTICLE 1:  PROPERTY/PURCHASE PRICE

1.1    Certain Basic Terms.

		
	(a)
	Buyer and Notice Address:

        
ARCP ACQUISITIONS, LLC,
c/o American Realty Capital Properties, Inc.
Attn:  Ryan Reimers
7621 Little Avenue, Suite 200
Charlotte, NC 28226
Telephone: 704/626-4403
Email: rreimers@arcpreit.com

With a copy to:        ARCP ACQUISITIONS, LLC
c/o American Realty Capital Properties, Inc.
Attn: Hope Ross
2325 E. Camelback Road, Suite 1100
Phoenix, AZ 85016
Telephone:  602/778-6489
Email:  hross@arcpreit.com

(b)    Seller and Notice Address:

PROLOGIS LOGISTICS SERVICES INCORPORATED
c/o Prologis, Inc.
Attn:  Mary Lang
One Meadowlands Plaza, Suite 100
East Rutherford, NJ 07073
Telephone:  201/528-9588
Facsimile:  415/477-2121
Email:  mlang@prologis.com 

With a copy to:        c/o Prologis, Inc.
Attn:  Megan Robert, Laura Porter and Anne LaPlace
4545 Airport Way
Denver, Colorado  80239
Telephone:  303/567-5613, 303/567-5415 and 303/567-5395
Facsimile:  303/567-5605 and 303/567-5761
Email:      mrobert@prologis.com, lporter@prologis.com and alaplace@prologis.com 

		
	(c)
	Effective Date:    The last date of execution by the Seller or the Buyer, as indicated on the signature page.

		
	(d)
	Purchase Price:    $32,600,000.00.

		
	(e)
	Earnest Money:    $300,000.00 initially (the “Initial Deposit”), plus $300,000.00 (the “Additional Deposit”) upon expiration of the Due Diligence Period 

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if Buyer elects (or is deemed to have elected) to proceed with the purchase of the Property pursuant to the terms hereof.  The Initial Deposit and the Additional Deposit shall be deposited in accordance with Section 1.3 below.  References to Earnest Money shall include the Initial Deposit, the Additional Deposit and the interest thereon, and exclude the Independent Consideration (defined below) therefrom.  

		
	(f)
	Due Diligence Period:    The period ending on at 5:00 p.m. Mountain time on June 11, 2014.

		
	(g)
	Closing Date:     As agreed between Seller and Buyer, but no later than 10 days following the end of the Due Diligence Period; provided, however, that upon 5 days prior written notice to the other party, Buyer shall have the right to extend the Closing Date for up to ten (10) business days.

(h)    Title Company:        First American Title Insurance Company
To be split equally between:

First American Title – Walnut Creek
Attn:  Shirley Fox
1850 Mt. Diablo Blvd., Suite 300
Walnut Creek, CA  94596
Telephone:  925/927-2137
Facsimile:  714/481-8972
Email:  shirleyfox@firstam.com

and

First American Title – Phoenix 
Attn:  Brandon Grajewski
2425 E. Camelback Road, Suite 300
Phoenix, AZ 85016
Telephone:  602/567-8145
Facsimile: 602/567-8101
Email: bgrajewski@firstam.com

(i)    Escrow Agent:        Same as above.

		
	(j)
	Broker:             CBRE.

1.2    Property.  Subject to the terms of this Purchase and Sale Agreement (the “Agreement”), Seller agrees to sell to Buyer, and Buyer agrees to purchase from Seller, the following property (the “Property”):

(a)The real property described in Exhibit A (the “Real Property”), together with the buildings and improvements thereon (the “Improvements”), and all appurtenances of the above-described Real Property, including easements or rights-of-way relating thereto, and, without warranty, all right, title, and interest, if any, of Seller in and to the land lying within any street or roadway adjoining the Real Property or any vacated or hereafter vacated street or alley adjoining said Real Property.  

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(b)All of Seller’s right, title and interest, in and to all fixtures, furniture, equipment, and other tangible personal property, if any, owned by Seller (the “Personal Property”) presently located on the Real Property and used exclusively in the operation or maintenance of the Real Property, but specifically excluding any items of personal property owned by tenants and any signage with the name “ProLogis”, “Prologis” or “AMB” on it). 

(c)All of Seller’s interest, as landlord, in the “Leases,” being all leases of the Improvements and any and all guaranties of the Leases, and all leases which may be made by Seller after the date hereof and before Closing as permitted by this Agreement, including all amendments thereto.

(d)All of Seller’s right, title and interest, if any, in and to all of the following items, to the extent assignable and without warranty (the “Intangible Personal Property”):  (A) licenses, and permits relating to the operation of the Property, and (B) if still in effect and at Seller’s cost, guaranties and warranties received by Seller from any contractor, manufacturer or other person in connection with the construction or operation of the Property.  Pursuant to the Assignment (defined in Section 5.3(b)), Seller shall assign, on a non-exclusive basis, the remaining portion of the one-year general contractor’s warranty from MV Commercial Construction LLC, as well as the warranties specifically identified in Section 7 of Addendum 5 of the Lease, to Buyer at Closing, and to the extent any such warranties require the approval of the warrantor as a condition to the effectiveness of such assignment, Seller shall use commercially reasonable efforts to obtain such approval(s).  Notwithstanding the foregoing, the following are excluded from the definition of Intangible Personal Property under this Agreement:  any trade names, trademark, service marks, logos, graphics and other rights with respect to the name “ProLogis”, “Prologis” and/or “AMB”.

1.3Earnest Money.  The Initial Deposit, in immediately available federal funds, evidencing Buyer’s good faith to perform Buyer’s obligations under this Agreement, shall be deposited by Buyer with the Escrow Agent not later than the third (3rd) business day after the Effective Date.  The Additional Deposit shall be deposited with the Escrow Agent on or before expiration of the Due Diligence Period if Buyer does not terminate this Agreement as provided in Section 2.3 below.  In the event that Buyer fails to timely deposit either the Initial Deposit or the Additional Deposit with the Escrow Agent, Seller may terminate this Agreement whereupon this Agreement shall be of no force and effect, the Escrow Agent shall refund the Earnest Money to Buyer, and neither party shall have any further rights or liabilities hereunder except as provided in Sections 2.2, 2.3 and 10.2 of this Agreement.  Except as otherwise provided in this Agreement, the Earnest Money shall be non-refundable to Buyer.  The Escrow Agent shall pay the Earnest Money to Seller at and upon the Closing, or otherwise, to the party entitled to receive the Earnest Money in accordance with Article 9 below.

1.4    Independent Contract Consideration.  The sum of $100.00 (the “Independent Contract Consideration”) is a non-refundable portion of the Earnest Money as consideration for Buyer’s exclusive right to inspect and purchase the Property pursuant to this Agreement and for Seller’s execution, delivery and performance of this Agreement.  Any reference in this Agreement to Buyer receiving back the Earnest Money means the Title Company shall return the Earnest Money (less the non-refundable Independent Contract Consideration) to Buyer and deliver the Independent Contract Consideration to Seller.

ARTICLE 2:  INSPECTIONS

2.1    Property Information.  Seller shall provide copies to Buyer, within 5 days after the Effective Date (to the extent not previously provided), to the extent in Seller’s possession, the following:

(a)    that certain Lease between Seller and Subaru of America, Inc. (“Tenant”) dated April 5, 2013, including all amendments and guaranties, if any, and all correspondence between Seller and Tenant dated after the Lease execution date;

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(b)    operating statements for the twenty-four (24) month period immediately prior to the Effective Date or such shorter period from the commencement of rent under the Lease (the “Operating Statements”);

(c)    a list and copies of any service or maintenance agreements, if any, relating to the Property (“Service Contracts”) and any stand-alone insurance policies of Seller which affect the Property ;

(d)    any existing land title surveys, site plans and as-built surveys of the Property; 

(e)all environmental, engineering and physical condition reports prepared for Seller and, to Seller’s knowledge, in its possession in connection with Seller’s purchase, ownership or management of the Property;
(f)all architectural plans and specifications, including construction drawings, for the improvements located on the Property;
(g)certificates of occupancy and zoning reports, and all governmental permits and approvals pertaining to the Property;
(h)real estate tax invoices for the current year and prior (2) years for the Property; 
(i)all warranties relating to the improvements, including without limitation, the structural slab and roof; and 
(j)all billboard leases (“Billboard Leases”) applicable to the Property.
The items enumerated in Section 2.1 and other documentation and information provided or otherwise made available by Seller are collectively referred to as the “Property Information.”  Except as otherwise expressly provided herein, Seller makes no representations or warranties as to the accuracy or completeness of the Property Information.

2.2    Inspections.

(a)During the Due Diligence Period, Buyer, its employees, contractors, consultants and agents (collectively, “Buyer’s Agents”) shall have the right to enter upon the Property for the purpose of inspecting the Property.  In connection with any such entry, Buyer (i) acknowledges that all entry is at Buyer’s sole risk, cost and expense and subject to the rights of Tenant under the Lease, (ii) shall give Seller reasonable advance notice of such entry or any discussions with the Tenant and shall conduct such entry and any inspections or discussions with the Tenant in connection therewith so as to minimize, to the greatest extent possible, interference with Seller’s business and the business of Seller’s Tenant and otherwise in a manner reasonably acceptable to Seller, and (iii) Seller or its representatives shall have the right to accompany Buyer and Buyer’s Agents or participate in any discussions with the Tenant or any testing or other inspection performed on the Property.  Without limiting the foregoing, prior to any entry to perform any on-site testing, Buyer shall give Seller written notice thereof, including the identity of the company or persons who will perform such testing and the proposed scope of the testing.  Seller shall approve or disapprove the scope and methodology of such proposed testing within 3 business days after receipt of such notice, such approval may be withheld in Seller’s sole and absolute discretion.  Seller’s failure to provide such approval or disapproval notice shall be deemed disapproval.  If Buyer or Buyer’s Agents take any sample from the Property in connection with any such approved testing, Buyer shall provide to Seller a portion of such sample being tested to allow Seller, if it so chooses, to perform its own testing.  

(b)Buyer shall, or shall cause Buyer’s Agents to, maintain commercial general liability insurance, including broad form property damage, with limits of not less than $1,000,000.00 per occurrence 

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and $2,000,000.00 in the aggregate in form and substance adequate to insure against all liability of Buyer and/or Buyer’s Agents, arising out of any entry or inspections of the Property pursuant to the provisions hereof, and Buyer shall provide Seller with evidence of such insurance coverage before any such entry, including evidence that Seller is an additional insured on the commercial general liability policy.  If any inspection or test disturbs the Property, Buyer will promptly restore the Property to the same condition as existed before the inspection or test.  BUYER SHALL INDEMNIFY, DEFEND AND HOLD SELLER, SELLER’S AFFILIATES, PARTNERS, MEMBERS, SHAREHOLDERS, INVESTMENT MANAGERS, TRUSTEES, DIRECTORS, OFFICERS, EMPLOYEES AND AGENTS OF EACH OF THEM AND THEIR RESPECTIVE HEIRS, SUCCESSORS, PERSONAL REPRESENTATIVES AND ASSIGNS (COLLECTIVELY, “SELLER PARTIES”) AND THE PROPERTY HARMLESS FROM AND AGAINST ANY AND ALL DAMAGES, LIABILITIES, LOSSES, CLAIMS, LIENS, COST OR EXPENSES (INCLUDING, WITHOUT LIMITATION, REASONABLE ATTORNEY’S FEES) ARISING OUT OF OR RELATING TO ANY ENTRY ON THE PROPERTY BY BUYER OR BUYER’S AGENTS IN THE COURSE OF PERFORMING THE INSPECTIONS, TESTING OR INQUIRIES PROVIDED FOR IN THIS AGREEMENT, INCLUDING WITHOUT LIMITATION DAMAGE TO THE PROPERTY OR RELEASE OF HAZARDOUS SUBSTANCES OR MATERIALS ONTO THE PROPERTY; PROVIDED HOWEVER THAT THE FOREGOING INDEMNITY SHALL NOT APPLY TO LIABILITIES RESULTING FROM THE DISCOVERY OR PRESENCE OF PRE-EXISTING ENVIRONMENTAL CONDITIONS ON THE PROPERTY, INCLUDING THE EXISTENCE OF HAZARDOUS MATERIALS PRIOR TO BUYER’S ENTRY OR FROM THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF ANY SELLER PARTY.  THE FOREGOING INDEMNITY SHALL SURVIVE THE TERMINATION OF THIS AGREEMENT.

2.3    Termination During Due Diligence Period.  If Buyer determines, in its sole discretion, before the expiration of the Due Diligence Period that the Property is unacceptable for Buyer's purposes, Buyer shall have the right to terminate this Agreement by giving to Seller notice of termination before the expiration of the Due Diligence Period and returning the Property Information to Seller.  Upon such deliveries, and provided Buyer is not in default hereunder, Seller shall authorize the Escrow Agent to refund the Earnest Money to Buyer, and neither party shall have any further rights or liabilities hereunder except as provided in Sections 2.2, 2.3 and 10.2 of this Agreement.  Buyer’s obligation to return the Property Information and repair any damage to the Property caused by Buyer or Buyer’s Agents shall survive the termination of this Agreement.

2.4    Buyer’s Reliance on its Investigations and Release.  The provisions of this Section 2.4 shall survive indefinitely the Closing, close of escrow and recordation of the Deed, and shall not be deemed merged into any of the Closing documents.

(a)Buyer acknowledges and agrees, by consummating the Closing, it will be deemed to have been given a full opportunity to inspect and investigate each and every aspect of the Property, either independently or through agents of Buyer’s choosing.  AS A MATERIAL PART OF THE CONSIDERATION FOR THIS AGREEMENT, SELLER AND BUYER AGREE THAT EXCEPT AS EXPRESSLY PROVIDED IN SECTION 7.1 BELOW (“SELLER’S WARRANTIES”), SELLER IS SELLING AND BUYER IS PURCHASING AND TAKING THE PROPERTY ON AN “AS IS” BASIS, WITH ANY AND ALL LATENT AND PATENT DEFECTS.  BUYER ACKNOWLEDGES THAT IT IS SOLELY RELYING UPON ITS EXAMINATION OF THE PROPERTY AND, EXCEPT FOR SELLER’S WARRANTIES, IT IS NOT RELYING UPON ANY REPRESENTATION, STATEMENT OR OTHER ASSERTION OF ANY KIND WHATSOEVER, EXPRESS OR IMPLIED, FROM SELLER, ITS AGENTS OR BROKERS AS TO ANY MATTER CONCERNING THE PROPERTY, INCLUDING, WITHOUT LIMITATION: (I) THE QUALITY, NATURE, ADEQUACY AND PHYSICAL CONDITION OF THE PROPERTY, INCLUDING, BUT NOT LIMITED TO, THE STRUCTURAL ELEMENTS, FOUNDATION, ROOF, APPURTENANCES, ACCESS, PARKING 

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FACILITIES AND THE ELECTRICAL, MECHANICAL, HVAC, PLUMBING, SEWAGE, AND UTILITY SYSTEMS, FACILITIES AND APPLIANCES, (II) THE QUALITY, NATURE, ADEQUACY, AND PHYSICAL CONDITION OF SOILS, GEOLOGY AND ANY GROUNDWATER, (III) THE EXISTENCE, QUALITY, NATURE, ADEQUACY AND PHYSICAL CONDITION OF UTILITIES SERVING THE PROPERTY, (IV) THE DEVELOPMENT POTENTIAL OF THE PROPERTY, AND THE PROPERTY’S USE, HABITABILITY, MERCHANTABILITY, SUITABILITY, VALUE OR FITNESS OF THE PROPERTY FOR ANY PARTICULAR PURPOSE, (V) THE ZONING OR OTHER LEGAL STATUS OF THE PROPERTY OR ANY OTHER PUBLIC OR PRIVATE RESTRICTIONS ON USE OF THE PROPERTY, (VI) THE COMPLIANCE OF THE PROPERTY OR ITS OPERATION WITH ANY APPLICABLE CODES, LAWS, REGULATIONS, STATUTES, ORDINANCES, COVENANTS, CONDITIONS AND RESTRICTIONS OF ANY GOVERNMENTAL OR QUASI-GOVERNMENTAL ENTITY OR OF ANY OTHER PERSON OR ENTITY, (VII) THE PRESENCE OF HAZARDOUS MATERIALS ON, UNDER OR ABOUT THE PROPERTY OR THE ADJOINING OR NEIGHBORING PROPERTY, (VIII) THE QUALITY OF ANY LABOR AND MATERIALS USED IN ANY IMPROVEMENTS ON THE REAL PROPERTY, (IX) THE CONDITION OF TITLE TO THE PROPERTY, AND (X) THE ECONOMICS OF THE OPERATION OF THE PROPERTY.  

Buyer’s Initials:  ___/s/ TW_______

(b)WITHOUT LIMITING THE ABOVE, EXCEPT WITH RESPECT TO A BREACH BY SELLER OF ANY OF THE SELLER’S WARRANTIES, AS OF CLOSING BUYER, FOR AND ON BEHALF OF ITSELF, ANY ENTITY AFFILIATED WITH BUYER AND ITS SUCCESSORS AND ASSIGNS, WAIVES ITS RIGHT TO RECOVER FROM AND FOREVER RELEASES AND DISCHARGES THE SELLER PARTIES FROM AND AGAINST ANY AND ALL DEMANDS, CLAIMS, LEGAL OR ADMINISTRATIVE PROCEEDINGS, LOSSES, LIABILITIES, DAMAGES, PENALTIES, FINES, LIENS, JUDGMENTS, COSTS OR EXPENSES WHATSOEVER (INCLUDING, WITHOUT LIMITATION, ATTORNEYS’ FEES AND COSTS) OF WHATEVER KIND OR NATURE, DIRECT OR INDIRECT, KNOWN OR UNKNOWN, FORESEEN OR UNFORESEEN, EXISTING AND FUTURE, CONTINGENT OR OTHERWISE (INCLUDING ANY ACTION OR PROCEEDING, BROUGHT OR THREATENED, OR ORDERED BY ANY APPROPRIATE GOVERNMENTAL ENTITY) THAT MAY ARISE ON ACCOUNT OF OR IN ANY WAY BE CONNECTED WITH OR RELATING TO THE PROPERTY CONDITION OR ANY LAW OR REGULATION APPLICABLE THERETO, INCLUDING WITHOUT LIMITATION, THE PRESENCE, MISUSE, USE, DISPOSAL, RELEASE OR THREATENED RELEASE OF ANY HAZARDOUS OR TOXIC MATERIALS, CHEMICALS OR WASTES AT THE PROPERTY AND ANY LIABILITY OR CLAIM RELATED TO THE PROPERTY ARISING UNDER THE COMPREHENSIVE ENVIRONMENTAL RESPONSE, COMPENSATION, AND LIABILITY ACT OF 1980, AS AMENDED (42 U.S.C. SECTION 9601 et seq.), THE SUPERFUND AMENDMENTS AND REAUTHORIZATION ACT OF 1986, THE RESOURCE CONSERVATION AND RECOVERY ACT of 1976 (42 U.S.C. SECTION 6901 et seq.), THE CLEAN WATER ACT (33 U.S.C. SECTION 1251 et seq.), THE SAFE DRINKING WATER ACT (42 U.S.C. SECTION 300F et seq.), THE HAZARDOUS MATERIALS TRANSPORTATION ACT (49 U.S.C. SECTION 5101 et seq.), THE TOXIC SUBSTANCES CONTROL ACT (15 U.S.C. SECTION 2601 et seq.), EACH AS AMENDED, OR ANY OTHER CAUSE OF ACTION BASED ON ANY OTHER STATE, LOCAL, OR FEDERAL ENVIRONMENTAL LAW, RULE OR REGULATION (COLLECTIVELY, “ENVIRONMENTAL LAWS”); PROVIDED HOWEVER, THE FOREGOING RELEASE SHALL NOT OPERATE TO RELEASE ANY CLAIM BY BUYER AGAINST ANY PERSON OR ENTITY OTHER THAN SELLER PARTIES.

Buyer’s Initials:  ___/s/ TW______

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2.5    Service Contracts.  On or prior to the last day of the Due Diligence Period, Buyer will advise Seller in writing of which Service Contracts it will assume.  Buyer will assume the obligations arising from and after the Closing Date under those Service Contracts that Buyer has elected to assume; provided, however, that (i) to the extent that any such Service Contracts are part of portfolio agreements, they shall not be assignable, and (ii) to the extent that any Service Contracts are not terminable by Seller in the time frame between the expiration of the Due Diligence Period and the Closing, Buyer shall, at Closing, assume such Service Contracts.  

2.6    Tenant Estoppel.  Seller shall use commercially reasonable efforts to secure and deliver to Buyer by the Closing Date an estoppel certificate for the Lease, from the Tenant and the guarantor, if any, consistent with the information in the Lease and substantially in the form attached hereto as Exhibit B or such form as may be required under the Lease.  Seller shall request the estoppel certificate from Tenant within two (2) business days following the Effective Date.  Buyer shall notify Seller in writing, either by the Closing Date or within 3 business days following Buyer’s receipt of the estoppel certificate (pdf copy via email), whichever is earlier, of Buyer’s disapproval of any materially adverse matter(s) contained therein as determined in Buyer’s reasonable business judgment, and the basis of such disapproval (“Buyer’s Disapproval Notice”).  Seller shall have 10 business days from Seller’s receipt of the Buyer’s Disapproval Notice within which to cure such materially adverse matter(s), and the Closing Date shall be extended, at Seller’s option, to allow for up to the full 10-business day cure period.  It shall be a condition precedent to Buyer’s obligation to proceed with Closing and Buyer may terminate this Agreement upon written notice to Seller on the Closing Date (as the same may be extended in accordance with the terms of this Agreement), in which event the Earnest Money shall be returned to Buyer, if by the Closing Date Seller has not delivered an estoppel certificate for the Lease (the “Estoppel Requirement”).  In the event of such termination, the Escrow Agent shall refund the Earnest Money to Buyer, and neither party shall have any further rights or liabilities hereunder except as provided in Sections 2.2, 2.3 and 10.2 of this Agreement.  

2.7    Other Estoppels.  Seller shall use commercially reasonable efforts to secure and deliver to Buyer by the Closing Date an estoppel certificate for each reciprocal easement agreement or any covenants, conditions and restrictions (“CCRs”) affecting the Property.  Seller shall request such estoppel certificates from Tenant within two (2) business days following Buyer’s request for same after receipt of the Title Commitment (defined below).  

ARTICLE 3:  TITLE AND SURVEY REVIEW

3.1    Delivery of Title Report.  Within 5 days after the Effective Date, Seller shall cause to be delivered to Buyer or to provide Buyer and its designee access to a preliminary report or title commitment issued by the Title Company (the “Title Report”), covering the Real Property, together with copies of all documents referenced in the Title Report.  Buyer, at its option and expense, may obtain a survey (the “Survey”) of the Property. 

3.2    Title Review and Cure.  Buyer shall notify Seller in writing of any title or survey objections (i) at least 3 business days prior to the expiration of the Due Diligence Period with respect to items disclosed in the Title Report or the Survey, if any, and (ii) at or prior to Closing with respect to any items which: (1) are first raised by the Title Company following the expiration of the Due Diligence Period and prior to Closing, (2) are not the result of Buyer’s acts, and (3) have a material adverse effect on the use or operation of the Property.  Failure to timely provide such a notice of objections shall constitute an approval by Buyer of all matters disclosed in the Title Report and any matters that would have been disclosed by an accurate survey of the Property.  Seller shall have no obligation to cure any title objections.  Seller may, but shall not be obligated to, attempt to cure by the Closing Date any title objections noted by Buyer.  If Seller elects not to cure any title objection (failure to make such election with regard to any title objection within 1 business day shall be deemed an election not to cure such title objection), or fails to cure any title objection it has elected to cure by the Closing Date, then Buyer shall either (x) terminate this Agreement by written notice 

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to Seller given on or before 2 business days after receipt of any notice or deemed notice from Seller that it elects not to cure any title objections, or, in the event Seller has elected to cure a title objection, but is unable to do so, the Closing Date, as applicable, the Escrow Agent shall refund the Earnest Money to Buyer, and neither party shall have any further rights or liabilities hereunder except as provided in Sections 2.2, 2.3 and 10.2 of this Agreement, or (y) waive such title objections, in which event the Closing shall occur and Buyer shall accept title to the Property subject to such title condition and without adjustment to Purchase Price.  Failure to so terminate shall constitute waiver of title objections.  Those items approved by Buyer or deemed approved by Buyer are hereinafter referred to as the “Permitted Exceptions.”  

3.3    Title Policy.  Delivery of title in accordance with the foregoing shall be evidenced by the willingness of the Title Company to issue, at Closing, an ALTA 2006 extended coverage Owner’s Policy of Title Insurance (in the event Buyer shall have promptly delivered to the Title Company an acceptable ALTA Survey of the Real Property) or an ALTA 2006 coverage Owner’s Policy of Title Insurance (in the event Buyer failed to promptly deliver an acceptable ALTA Survey of the Property) (as applicable, the “Title Policy”) , in the form prescribed by the applicable state where the Property is located, in the amount of the Purchase Price showing title to the Real Property vested in Buyer, subject to: (i) the Permitted Exceptions, (ii) non-delinquent liens for real estate taxes and assessments, (iii) any standard, preprinted conditions or exceptions to the Title Policy required by the Title Company, (iv) any exceptions to title which would be disclosed by an inspection and/or accurate survey of the Property, (v) interests of tenants in possession, and (vi) any exceptions or matters created by Buyer or Buyer’s Agents.

ARTICLE 4:  OPERATIONS AND RISK OF LOSS

4.1    Ongoing Operations, Insurance.  During the pendency of this Agreement, Seller shall carry on its business and activities relating to the Property substantially in the same manner as it did before the Effective Date; provided that Seller shall not be obligated to make any extraordinary repairs or make any capital improvements to the Property.  Through the Closing Date, Seller shall maintain or cause to be maintained, at Seller’s sole cost and expense, Seller’s existing policy or policies of insurance insuring the Property.

4.2    New Contracts.  During the pendency of this Agreement, Seller will not, without the prior consent of Buyer (which shall not be unreasonably withheld or delayed), enter into any contract that will be an obligation affecting the Property subsequent to the Closing, except contracts entered into in the ordinary course of business that are terminable without cause on 30-days’ notice.

4.3    Leasing Arrangements.  Seller may not enter into any new amendment, expansion, renewal, modification, termination or other similar agreement pertaining to the Lease (collectively, “New Lease Agreements”) without first obtaining Buyer’s approval; provided, however, that Buyer’s consent shall not be required if Seller is required to enter into the New Lease Agreement pursuant to the terms and conditions of the Lease.  Buyer shall be deemed to have consented to any New Lease Agreement if it has not notified Seller specifying with particularity the matters to which Buyer reasonably objects, within 3 days after its receipt of Seller’s written request for consent, together with a copy of the proposed New Lease Agreement.

4.4    Damage or Condemnation.  If before the Closing the Property or any portion thereof shall be materially damaged, or the commencement of condemnation proceedings shall affect all or a material portion of the Property, then Buyer may terminate this Agreement by written notice to Seller given within 10 days of Seller’s notice of the occurrence of the damage or taking.  In the event of such termination, the Escrow Agent shall refund the Earnest Money to Buyer, and neither party shall have any further rights or liabilities hereunder except as provided in Sections 2.2, 2.3 and 10.2 of this Agreement.  For the purposes of this Section, the phrases “material damage” and “materially damaged” means (i) the estimated repair cost is greater than 5% of the Purchase Price, (ii) such damage or destruction will entitle Tenant to terminate the Lease or abate its rent in whole or in part and such abated rent is not entirely replaced with the proceeds of 

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a rent interruption or similar policy held by Seller or Buyer, (iii) the damage or destruction is not covered by Seller’s insurance or if such insurance is not for full replacement cost and Seller is not willing to provide a credit against the Purchase Price for the uncovered portion of the loss, or (iv) Buyer’s lender shall refuse to consummate the loan to Buyer, despite Buyer’s good faith efforts to proceed with the loan, as a result of such damage or destruction.  For the purposes of this Section, condemnation proceedings shall be deemed to affect a material portion of the Property if (i) the condemnation proceedings eliminate any driveway or access points for the Property for which a replacement driveway or access point is unavailable, or which results in a taking of a portion of the building greater than 5% or a taking of the parking areas of the Property below legal requirements or requirements in the Lease, (ii) such condemnation proceedings will entitle Tenant to terminate the Lease or abate its rent in whole or in part and such abated rent is not entirely replaced with the proceeds of a rent interruption or similar policy held by Seller or Buyer, or (iii) Buyer’s lender shall refuse to consummate the loan to Buyer, despite Buyer’s good faith efforts to proceed with the loan, as a result of such condemnation proceedings.  If the Closing Date is within the aforesaid 10-day period, then Closing shall be extended to the next business day following the end of said 10-day period.  If no such election is made, and in any event if the damage is not material, this Agreement shall remain in full force and effect and the purchase contemplated herein, less any interest taken by eminent domain or condemnation, shall be effected with no further adjustment, and upon the Closing of this purchase, Seller shall (i) assign, transfer and set over to Buyer all of the right, title and interest of Seller in and to any awards that have been or that may thereafter be made for such taking, or any insurance proceeds that may thereafter be made for such damage or destruction, (ii) give Buyer a credit at Closing for an amount equal to any condemnation awards or insurance proceeds collected by Seller as a result of any such condemnation or damage or destruction, and the amount of any insurance deductible under such policies (but in no event shall the amount of such credit to Buyer exceed the Purchase Price), and (iii) receive a credit at Closing for any sums expended by Seller toward the restoration or repair of the Property.  In the event the amount of awards or proceeds subsequently received by Buyer exceeds the Purchase Price, then Buyer shall pay to Seller any such excess within 10 days after Buyer’s receipt of such awards or proceeds.  The provisions of this Section 4.4 shall survive indefinitely the Closing, close of escrow and recordation of the Deed, and shall not be deemed merged into any of the Closing documents.

ARTICLE 5:  CLOSING

5.1    Closing and Escrow Instructions.  

(a)The consummation of the transaction contemplated herein (“Closing”) shall occur on the Closing Date at the offices of the Escrow Agent.  Closing shall occur and Buyer’s funds shall be received on or before 2:00 P.M. Pacific Time on the Closing Date.

(b)Seller and Buyer agree to execute such reasonable additional and supplemental escrow instructions as may be appropriate to enable the Escrow Agent to comply with the terms of this Agreement; provided, however, that in the event of any conflict between the provisions of this Agreement and any supplementary escrow instructions, the terms of this Agreement shall control.

5.2    Conditions to the Parties’ Obligations to Close.  The obligations of Seller, on the one hand, and Buyer, on the other hand, to consummate the transaction contemplated hereunder are contingent upon the following conditions:

(a)    The other party’s representations and warranties contained herein shall be true and correct in all material respects as of the date of this Agreement and the Closing Date, subject to any Seller modifications hereafter made to a Property Representation (as defined and provided for in Section 7.1);

(b)    As of the Closing Date, the other party shall have performed its obligations hereunder in all material respects and all deliveries to be made at Closing have been tendered;

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(c)    There shall exist no actions, suits, arbitrations, claims, attachments, proceedings, assignments for the benefit of creditors, insolvency, bankruptcy, reorganization or other proceedings, pending or threatened against the other party that would materially and adversely affect the other party’s ability to perform its obligations under this Agreement; 

(d)    There shall exist no pending or threatened action, suit or proceeding with respect to the other party before or by any court or administrative agency which seeks to restrain or prohibit, or to obtain damages or a discovery order with respect to, this Agreement or the consummation of the transaction contemplated hereby; and

(e)As a condition precedent for Buyer’s benefit, Seller shall deliver to Buyer a written waiver by Tenant of any express right of first refusal or right of first offer which Tenant may have pursuant to the express terms of the Lease, if applicable.  Seller agrees to request such written waiver, if applicable, within two (2) business days after the Effective Date.

So long as a party is not in default hereunder, if any condition to such party’s obligation to proceed with the Closing hereunder has not been satisfied as of the Closing Date, such party may, in its sole discretion, terminate this Agreement by delivering written notice to the other party on or before the Closing Date, or elect to close, notwithstanding the non-satisfaction of such condition, in which event such party shall be deemed to have waived any such condition.  In the event of a termination, the Escrow Agent shall refund the Earnest Money to Buyer, and neither party shall have any further rights or liabilities hereunder except as provided in Sections 2.2, 2.3 and 10.2 of this Agreement.  If such party elects to close, notwithstanding the nonsatisfaction of such condition, there shall be no liability on the part of the other party for breaches of representations and warranties of which the party electing to close had knowledge as of the Closing.

5.3    Seller’s Deliveries in Escrow.  On or before the Closing Date, Seller shall deliver in escrow to the Escrow Agent the following:  

(a)    Deed.  A special or limited warranty deed in the form provided for under the law of the state where the Property is located, or otherwise in conformity with the custom in such jurisdiction and satisfactory to Seller (the “Deed”), executed and acknowledged by Seller, conveying to Buyer Seller’s title to the Property, subject only to:  all zoning and building laws, ordinances, maps, resolutions, and regulations of all governmental authorities having jurisdiction which affect the Property and the use and improvement thereof; the Lease; all matters of record; any state of facts which an accurate survey made of the Property at the time of Closing would show; and any state of facts which a personal inspection of the Property made at the time of Closing would disclose.  Any discrepancy between the description of the Property in the deed from Seller’s immediate grantor and in the Deed shall be quitclaimed by Seller;

(b)    Assignment of Lease and Contracts and Bill of Sale.  An Assignment of Lease and Contracts and Bill of Sale in the form of Exhibit D attached hereto (the “Assignment”), executed by Seller, which Assignment shall also include an assignment and assumption of that certain Memorandum of Agreement dated February 25, 2013 between Seller and the City of Lebanon regarding tax abatement for the Property; 

(c)    FIRPTA.  A Foreign Investment in Real Property Tax Act affidavit executed by Seller;

(d)    Notice to Tenant.  A notice regarding the sale in substantially the form of Exhibit E attached hereto, or such other form as may be required by applicable state law for delivery by Buyer to the Tenant immediately after the Closing; and

(e)    Additional Documents.  Any additional documents that Escrow Agent or the Title Company may reasonably require for the proper consummation of the transaction contemplated by this Agreement.

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5.4    Buyer’s Deliveries in Escrow.  On or before the Closing Date, Buyer shall deliver in escrow to the Escrow Agent the following:  

(a)    Purchase Price.  The Purchase Price, less the Earnest Money that is applied to the Purchase Price, plus or minus applicable prorations, plus the amount calculated as the net present value of the income for the remaining term of both Billboard Leases using a cap rate of 7.5%, deposited by Buyer with the Escrow Agent in immediate, same‐day federal funds into the Escrow Agent’s escrow account;

(b)    Assignment of Lease and Contracts and Bill of Sale.  The Assignment, executed by Buyer;

(c)    Additional Documents.  Any additional documents that Escrow Agent or the Title Company may reasonably require for the proper consummation of the transaction contemplated by this Agreement.

5.5    Closing Statements/Escrow Fees.  At the Closing, Seller and Buyer shall deposit with the Escrow Agent executed closing statements consistent with this Agreement in the form required by the Escrow Agent.

5.6    Possession.  Seller shall deliver possession of the Property to Buyer at the Closing.

5.7    Post-Closing Deliveries.  Immediately after the Closing, Seller shall deliver to the offices of Buyer’s property manager: the original Lease; copies or originals of all contracts, receipts for deposits, and unpaid bills; all keys, if any, used in the operation of the Property; and, if in Seller’s possession or control, any “as-built” plans and specifications of the Improvements.

5.8    Closing Costs.  At Closing, Seller shall pay 1⁄2 of the cost of the premium for the standard and extended coverage portions of the Title Policy, costs of recording instruments to cure title matters Seller has elected to cure, 1⁄2 of any transfer taxes or fees due in connection with the transaction contemplated by this Agreement and 1⁄2 of any escrow fees.  Buyer shall pay the cost of recording the Deed, 1⁄2 of the cost of premium for the standard and extended coverage portions of the Title Policy (excluding any endorsements obtained by Seller solely to cure title matters that Seller has elected to cure), the endorsements and any survey obtained by Buyer, all other (if any) costs of recording, 1⁄2 any transfer taxes or fees due in connection with the transaction contemplated by this Agreement, and 1⁄2 of any escrow fees.  Each party shall pay its own attorneys’ fees.  Other costs, charges, and expenses shall be borne and paid as provided in this Agreement or in the absence of such provision, in accordance with local custom.

5.9    Close of Escrow.  Upon satisfaction or completion of the foregoing conditions and deliveries, the parties shall direct the Escrow Agent to immediately record and deliver the documents described above to the appropriate parties and make disbursements according to the closing statements executed by Seller and Buyer.

ARTICLE 6: PRORATIONS

6.1    Prorations.  The day of Closing shall belong to Buyer and all prorations hereinafter provided to be made as of the Closing shall each be made as of the end of the day before the Closing Date.  In each such proration set forth below, the portion thereof applicable to periods beginning as of Closing shall be credited to Buyer or charged to Buyer as applicable and the portion thereof applicable to periods ending as of Closing shall be credited to Seller or charged to Seller as applicable.

(a)    Collected Rent.  All collected rent (excluding tenant reimbursements for Operating Costs, which is the subject of Section 6.1(b)) and other collected income (and any applicable state or local tax on rent) under the Lease shall be prorated as of the Closing.  Seller shall be charged with any rent and other 

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income collected by Seller before Closing but applicable to any period of time after Closing.  Uncollected rent and other income shall not be prorated.  Any prepaid rents for the period following the Closing Date shall be paid over by Seller to Buyer.  Buyer covenants and agrees to use its commercially reasonable efforts after the Closing to collect and deliver to Seller all rents or other payments that were applicable to the period before Closing.  Seller may pursue collection as to any delinquent rent or Expense Reimbursements (as hereinafter defined), provided that Seller shall have no right to terminate the Lease or Tenant’s occupancy under the Lease in connection therewith.  All rents received by Buyer following the Closing shall be applied against the most recently accrued rent unless a tenant has specified in writing that such payment relates to a particular amount due to Seller.

(b)    Operating Costs.  To the extent Seller, as landlord under the Leases, is currently collecting from Tenant under the Lease additional rent (collectively, “Expense Reimbursements”) to cover taxes, insurance, utilities (to the extent not paid directly by Tenant), common area maintenance and other operating costs and expenses (collectively, “Operating Costs”) in connection with the ownership, operation, maintenance and management of the Property, Seller and Buyer shall each receive a debit or credit, as the case may be, for the difference between the Tenant’s current account balance for Operating Costs and amount of Operating Costs reimbursable to Seller; provided, however, that (i) in no event shall Seller be required to credit Buyer for any uncollected Expense Reimbursements for the Tenant and the same shall be treated in the same manner as uncollected rent is treated in Section 6.1(a), and (ii) all Expense Reimbursements received by Buyer following the Closing shall be applied against the most recently accrued Operating Costs unless the Tenant has specified in writing that such payment relates to an amount due prior to the Closing.  Operating Costs for Seller’s period of ownership shall be reasonably estimated by the parties if final bills are not available.  Operating Costs that are payable by Tenant directly to the applicable service providers shall not be prorated between Seller and Buyer.

(c)    Taxes and Assessments.  Real estate taxes and assessments imposed by governmental authority that are not yet due and payable and that are not payable by the Tenant under the Lease directly to the governmental authorities shall be prorated as of the Closing based upon the most recent ascertainable assessed values and tax rates.  Seller shall receive a credit for any taxes and assessments paid by Seller and applicable to any period after the Closing.  Notwithstanding anything seemingly to the contrary contained herein, Buyer shall be solely responsible for and shall assume all assessments applicable to the Property as a result of a change in ownership, regardless of when assessed.  

(d)    Service Contracts and Utilities.  Seller shall arrange for a billing under all those Service Contracts for which fees are based on usage and with utility companies for a billing for utilities, to include all utilities or service used up to the day Closing occurs, and Seller shall pay the resultant bills.  In the event any Service Contracts extend over periods beyond the Closing the same shall be prorated on a per diem basis.

(e)    Final Adjustment After Closing.  If final prorations cannot be made at Closing for any item being prorated under this Section 6.1 or if any of the aforesaid prorations were calculated inaccurately, then Buyer and Seller agree to allocate such items on a fair and equitable basis as soon as reasonably possible after the Closing Date, to the effect that income and expenses are received and paid by the parties on a cash basis with respect to their period of ownership.  Payments in connection with the final adjustment shall be due within 30 days of written notice.  The parties shall have reasonable access to, and the right to inspect and audit, the other party’s books to confirm the final prorations.  Seller shall not, however, be charged for any increase in Operating Costs or real estate taxes due to increased costs or reassessments incurred by Buyer in respect of such subsequent to the Closing.

6.2    Intentionally Deleted. 

6.3    Intentionally Deleted.  

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6.4    Utility Deposits.  Buyer shall be responsible for making any deposits required with utility companies.  Seller shall receive a credit at Closing for any utility deposits transferred or assigned to Buyer.

6.5    Sale Commissions.  Seller and Buyer represent and warrant each to the other that they have not dealt with any real estate broker, sales person or finder in connection with this transaction other than Broker.  If this transaction is closed, Seller shall pay Broker in accordance with their separate agreement.  Broker is an independent contractor and is not authorized to make any agreement or representation on behalf of either party.  EXCEPT AS EXPRESSLY SET FORTH ABOVE, IF ANY CLAIM IS MADE FOR BROKER’S OR FINDER’S FEES OR COMMISSIONS IN CONNECTION WITH THE NEGOTIATION, EXECUTION OR CONSUMMATION OF THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY, EACH PARTY SHALL DEFEND, INDEMNIFY AND HOLD HARMLESS THE OTHER PARTY FROM AND AGAINST ANY SUCH CLAIM BASED UPON ANY STATEMENT, REPRESENTATION OR AGREEMENT OF SUCH PARTY.  

The provisions of this Article 6 shall survive indefinitely the Closing, close of escrow and recordation of the Deed, and shall not be deemed merged into any of the Closing documents.

ARTICLE 7:  REPRESENTATIONS AND WARRANTIES

7.1    Seller’s Representations and Warranties.  As a material inducement to Buyer to execute this Agreement and consummate this transaction, Seller represents and warrants to Buyer that:

(a)    Organization and Authority.  Seller has been duly organized and is validly existing and in good standing in the jurisdiction of its formation, and is qualified to do business in the state in which the Property is located.  Seller has the full right and authority and has obtained any and all consents required to enter into this Agreement and to consummate or cause to be consummated the transactions contemplated hereby.  This Agreement has been, and all of the documents to be delivered by Seller at the Closing will be, authorized and properly executed and constitutes, or will constitute, as appropriate, the valid and binding obligation of Seller, enforceable in accordance with their terms.

(b)    Conflicts and Pending Action.  There is no agreement to which Seller is a party or to Seller’s knowledge binding on Seller which is in conflict with this Agreement.  To Seller’s knowledge, Seller has not received written notice from any applicable governmental authority of any pending or threatened action against Seller or the Property, including condemnation proceedings, which challenges or impairs Seller’s ability to execute or perform its obligations under this Agreement.

(c)    Lease.  The copy of the Lease provided to Buyer pursuant to Section 2.1 is true, correct and complete. As of the Closing Date, Seller has sent no written notice of default to Tenant and, to Seller’s knowledge, no default of Tenant exists under the Lease which remains uncured. 
(d)Service Contracts.  The list of Service Contracts delivered to Buyer pursuant to this Agreement is true, correct, and complete as of the date of its delivery.  Neither Seller nor, to Seller’s knowledge, any other party is in material default under any Service Contract.
(e)Compliance with Law.  To Seller’s knowledge, Seller has not received any written notice, addressed specifically to Seller and sent by any governmental authority or agency having jurisdiction over the Property, that the Property or its use is in material violation of any law, ordinance or regulation, including any applicable Environmental Laws.
(f)Suits/Claims.  As of the Effective Date, there are no suits or claims pending or to Seller’s knowledge, threatened with respect to or in any manner affecting the Property or Tenant, nor does Seller 

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know of any circumstances which should or could reasonably form the basis for any such suits or claims which have not been disclosed in writing to Buyer by Seller.

(g)OFAC Compliance.  Seller is currently in compliance with and shall at all times during the term of this Agreement remain in compliance with the regulations of the Office of Foreign Assets Control (“OFAC”) of the Department of the Treasury (including those named on OFAC’s Specially Designated and Blocked Persons List) and any statute, executive order (including the September 24, 2001, Executive Order Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or Support Terrorism), or other governmental action relating thereto.

“Seller’s knowledge,” as used in this Agreement means the current actual knowledge of Mary Lang, without any duty of inquiry or investigation and without personal liability whatsoever.

Seller’s representations and warranties concerning the Property (collectively, the “Property Representations”) are qualified by any knowledge obtained by Buyer (including Buyer’s receipt of a tenant estoppel certificate) by the expiration of the Due Diligence Period, and in the event Buyer’s election to proceed with the purchase of the Property pursuant to Section 2.3 above, then Buyer shall consummate the acquisition of the Property subject to such qualification without any adjustment to the Purchase Price.  Seller may further qualify the Property Representations by notice, specifying with reasonable particularity the facts and circumstances known to Seller that make the applicable Property Representation false, misleading or inaccurate, delivered to Buyer before the Closing Date.  If Seller delivers a Property Representation notice or if after the expiration of the Due Diligence Period Buyer obtains knowledge of any facts or circumstances that makes any Property Representation false, misleading or inaccurate (herein collectively referred to as “Exception Matters”) within less than 3 business days before the Closing, then Buyer may by notice to Seller extend the Closing Date to that day which is 3 business days after the date of receipt of the Property Representation notice or after obtaining knowledge of such Exception Matters.  If any Exception Matters reflects a material adverse change in the matter covered by the applicable Property Representation, then Buyer, as its sole remedy, may terminate this Agreement within 3 business days after receipt of such notice, receive a refund of the Earnest Money and neither party shall have any further rights and obligations under this Agreement except as provided in Sections 2.2, 2.3 and 10.2 of this Agreement; provided, that if Buyer so elects to terminate this Agreement, Seller shall have the right, but not the obligation, to cure such Exception Matters within 30 days (and the Closing shall be delayed to the extent necessary to allow Seller the entire 30-day period within which to effect such cure) and if Seller cures such Exception Matters, then Buyer’s right to terminate this Agreement as a result of such Exception Matters shall be revoked, null and void and this Agreement shall continue without termination (and, if the Closing Date is extended, Closing shall occur on the date that is 5 days after Seller cures such Exception Matters).

7.2    Buyer’s Representations and Warranties.  As a material inducement to Seller to execute this Agreement and consummate this transaction, Buyer represents and warrants to Seller that:

(a)    Organization and Authority.  Buyer has been duly organized and is validly existing and in good standing in the state of its formation, and is qualified to do business in the state in which the Property is located.  Buyer has the full right and authority and has obtained any and all consents required to enter into this Agreement and to consummate or cause to be consummated the transactions contemplated hereby.  This Agreement has been, and all of the documents to be delivered by Buyer at the Closing will be, authorized and properly executed and constitutes, or will constitute, as appropriate, the valid and binding obligation of Buyer, enforceable in accordance with their terms.  

(b)    Conflicts and Pending Action.  There is no agreement to which Buyer is a party or to Buyer’s knowledge binding on Buyer which is in conflict with this Agreement.  There is no action or proceeding pending or, to Buyer’s knowledge, threatened against Buyer which challenges or impairs Buyer’s ability to execute or perform its obligations under this Agreement.

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(c)    OFAC Compliance.  Buyer is currently in compliance with and shall at all times during the term of this Agreement remain in compliance with the regulations of the OFAC (including those named on OFAC’s Specially Designated and Blocked Persons List) and any statute, executive order (including the September 24, 2001, Executive Order Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or Support Terrorism), or other governmental action relating thereto.

7.3    Defect Warranty.  Seller shall remain liable to Buyer for any claims made by Tenant for the correction of any defects in any materials or workmanship with the Initial Improvements (as defined in the Lease) solely pursuant to Sections 10(f) and (g) of the Lease to the extent any such claim is not covered by the express terms of the warranties assigned by Seller to Buyer pursuant to the terms hereof.  Seller’s obligations pursuant to this Section 7.3 shall survive Closing and shall not be subject to the other provisions and limitations of Section 10.6 below.

ARTICLE 8:  DEFAULT AND DAMAGES

8.1    Default by Buyer.  THE PARTIES HAVE AGREED THAT SELLER’S ACTUAL DAMAGES IN THE EVENT OF A FAILURE TO CONSUMMATE THE SALE DUE TO BUYER’S DEFAULT WOULD BE EXTREMELY DIFFICULT OR IMPRACTICABLE TO DETERMINE.  AFTER NEGOTIATION, THE PARTIES HAVE AGREED THAT, CONSIDERING ALL THE CIRCUMSTANCES EXISTING ON THE DATE OF THIS AGREEMENT, THE AMOUNT OF THE EARNEST MONEY IS A REASONABLE ESTIMATE OF THE DAMAGES THAT SELLER WOULD INCUR IN THE EVENT OF BUYER’S DEFAULT.  IN THE EVENT BUYER FAILS, WITHOUT LEGAL EXCUSE, TO COMPLETE THE PURCHASE OF THE PROPERTY, THE EARNEST MONEY MADE BY BUYER SHALL BE FORFEITED TO SELLER AS LIQUIDATED DAMAGES AND THE SOLE AND EXCLUSIVE REMEDY AVAILABLE TO SELLER FOR SUCH FAILURE.  BY PLACING THEIR INITIALS BELOW, EACH PARTY SPECIFICALLY CONFIRMS THE ACCURACY OF THE STATEMENTS MADE ABOVE AND THE FACT THAT EACH PARTY WAS REPRESENTED BY COUNSEL WHO EXPLAINED, AT THE TIME THIS AGREEMENT WAS MADE, THE CONSEQUENCES OF THIS LIQUIDATED DAMAGES PROVISION.  THIS SECTION 8.1 IS NOT INTENDED TO LIMIT SELLER’S RIGHTS UNDER SECTIONS 2.2, 2.3 AND 10.2 OF THIS AGREEMENT.

	
			
	Initials:
	/s/ ML
	/s/ TW

	 
	Seller
	Buyer

8.2    Default by Seller.  If Seller defaults in its obligation to sell and convey the Property to Buyer pursuant to this Agreement, Buyer’s sole remedy shall be to elect one of the following:  (a) to terminate this Agreement, Seller shall promptly reimburse to Buyer its reasonable out-of-pocket, third-party costs for property diligence expenses (including reasonable attorneys’ fees), not to exceed $50,000.00, in which event Buyer shall be entitled to the return by the Escrow Agent to Buyer of the Earnest Money, in which event neither party shall have any further rights or obligations under this Agreement except as provided in Sections 2.2, 2.3 and 10.2 of this Agreement, or (b) to bring a suit for specific performance provided that any suit for specific performance must be brought within 90 days of Seller’s default, to the extent permitted by law, Buyer waiving the right to bring suit at any later date.  This Agreement confers no present right, title or interest in the Property to Buyer and Buyer agrees not to file a lis pendens or other similar notice against the Property except in connection with, and after, the proper filing of a suit for specific performance.

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ARTICLE 9:  EARNEST MONEY

9.1    Investment and Use of Funds.  The Escrow Agent shall invest the Earnest Money in government insured interest‐bearing accounts satisfactory to Buyer and Seller, shall not commingle the Earnest Money with any funds of the Escrow Agent or others, and shall promptly provide Buyer and Seller with confirmation of the investments made.  If the Closing under this Agreement occurs, the Escrow Agent shall apply the Earnest Money against the Purchase Price due Seller at Closing.

9.2    Agreement Termination.  Upon a termination of this Agreement, either party to this Agreement may give written notice to the Escrow Agent and the other party of such termination and the reason for such termination.  Such request shall also constitute a request for the release of the Earnest Money in accordance with the terms of this Agreement.  Except with respect to a termination by Buyer pursuant to Section 2.3(a) above (pursuant to which section Buyer is entitled to an immediate return of the Earnest Money),in the event of a dispute concerning the disbursement of the Earnest Money by either party in writing within 5 business days of the termination, then the Escrow Agent shall retain the Earnest Money until it receives written instructions executed by both Seller and Buyer as to the disposition and disbursement of the Earnest Money, or until ordered by final court order, decree or judgment, which is not subject to appeal, to deliver the Earnest Money to a particular party, in which event the Earnest Money shall be delivered in accordance with such notice, instruction, order, decree or judgment.

9.3    Interpleader.  Seller and Buyer mutually agree that in the event of any controversy regarding the Earnest Money, unless mutual written instructions are received by the Escrow Agent directing the disposition of the Earnest Money, the Escrow Agent shall not take any action, but instead shall await the disposition of any proceeding relating to the Earnest Money or, at the Escrow Agent’s option, the Escrow Agent may interplead all parties and deposit the Earnest Money with a court of competent jurisdiction in which event the Escrow Agent may recover all of its court costs and reasonable attorneys’ fees.  Seller or Buyer, whichever loses in any such interpleader action, shall be solely obligated to pay such costs and fees of the Escrow Agent, as well as the reasonable attorneys’ fees of the prevailing party in accordance with the other provisions of this Agreement.

9.4    Liability of Escrow Agent.  The parties acknowledge that the Escrow Agent is acting solely as a stakeholder at their request and for their convenience, that the Escrow Agent shall not be deemed to be the agent of either of the parties, and that the Escrow Agent shall not be liable to either of the parties for any action or omission on its part taken or made in good faith, and not in disregard of this Agreement, but shall be liable for its negligent acts and for any loss, cost or expense incurred by Seller or Buyer resulting from the Escrow Agent’s mistake of law respecting the Escrow Agent’s scope or nature of its duties.  Seller and Buyer shall jointly and severally indemnify and hold the Escrow Agent harmless from and against all costs, claims and expenses, including reasonable attorneys’ fees, incurred in connection with the performance of the Escrow Agent’s duties hereunder, except with respect to actions or omissions taken or made by the Escrow Agent in bad faith, in disregard of this Agreement or involving negligence on the part of the Escrow Agent.

ARTICLE 10: MISCELLANEOUS

10.1    Parties Bound.  Except for an assignment expressly permitted under this Section or pursuant to Section 10.16, Buyer shall not assign this Agreement without the prior written consent of Seller, in its sole discretion.  Buyer may assign this Agreement to an affiliate or subsidiary of Buyer or of American Realty Capital Properties, Inc. (“ARCP”), over which Buyer or ARCP, as applicable, or either of their parent companies owns a majority interest (directly or indirectly) and has management control.  In no event shall Buyer be released from any of its obligations or liabilities hereunder if Seller approves of any assignment of this Agreement.  Any prohibited assignment shall be void.  Subject to the foregoing, this Agreement shall be binding upon and inure to the benefit of the respective legal representatives, successors, assigns, heirs, and devisees of the parties.

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10.2    Confidentiality and Public Announcement or Disclosure.  This Section 10.2 shall survive indefinitely the Closing, close of escrow and recordation of the Deed, and shall not be deemed merged into any of the Closing documents, or any termination of this Agreement.

(a)The Property Information and all other information, other than matters of public record, furnished to, or obtained through inspection of the Property by, Buyer, its affiliates, lenders, employees or Buyer’s Agents relating to the Property, will be treated by Buyer, its affiliates, lenders, employees and Buyer’s Agents as confidential, and will not be disclosed to anyone other than on a need-to-know basis to Buyer’s consultants who agree to maintain the confidentiality of such information, and will be returned to Seller by Buyer if the Closing does not occur.

(b)Neither Buyer nor Seller shall make any public announcement or disclosure of this Agreement or any information related to this Agreement or Closing, if any, to outside brokers or third parties, or as may be required by any governmental entity (such as the Securities and Exchange Commission) as reasonably determined by a party, before or for a period of 18 months after the Closing, without the prior written consent of Seller.  Buyer shall not record this Agreement or any memorandum of this Agreement.

10.3    Headings.  The article, section and other headings of this Agreement are for convenience only and in no way limit or enlarge the scope or meaning of the language hereof.  Where the context so requires, the use of the singular shall include the plural and vice versa and the use of the masculine shall include the feminine and the neuter.  The term “person” shall include any individual, partnership, joint venture, corporation, trust, unincorporated association, any other entity and any government or any department or agency thereof, whether acting in an individual, fiduciary or other capacity.

10.4    Invalidity and Waiver.  If any portion of this Agreement is held invalid or inoperative, then so far as is reasonable and possible the remainder of this Agreement shall be deemed valid and operative, and effect shall be given to the intent manifested by the portion held invalid or inoperative.  The failure by either party to enforce against the other any term or provision of this Agreement shall not be deemed to be a waiver of such party’s right to enforce against the other party the same or any other such term or provision in the future.  

10.5    Governing Law.  This Agreement shall, in all respects, be governed, construed, applied, and enforced in accordance with the law of the state in which the Property is located.  

10.6    Survival, Limitation of Liability.  Unless otherwise expressly stated in this Agreement, each of the covenants, obligations, representations, and agreements contained in this Agreement shall survive the Closing and the execution and delivery of the Closing documents required hereunder only for a period of 9 months immediately following the Closing Date; provided, however the indemnification provisions of Sections 2.2and 6.5 and the provisions of Section 6.1(e) shall survive the termination of this Agreement or the Closing, whichever occurs, and shall not be merged, until the applicable statute of limitations with respect to any claim, cause of action, suit or other action relating thereto shall have fully and finally expired.  Any claim based upon a misrepresentation or a breach of a warranty contained in Article 7 of this Agreement shall be actionable or enforceable if and only if:  (i) notice of such claim is given to the party which allegedly made such misrepresentation or breached such covenant, obligation, warranty or agreement within 6 months after the Closing Date; and (ii) the amount of damages or losses as a result of such claim suffered or sustained by the party making such claim exceeds $50,000.00; and provided further that the aggregate liability of Seller for any and all such breaches or misrepresentation shall be limited to an amount equal to 4% of the Purchase Price.

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10.7    No Third Party Beneficiary.  This Agreement is not intended to give or confer any benefits, rights, privileges, claims, actions, or remedies to any person or entity as a third party beneficiary, decree or otherwise.  

10.8    Entirety and Amendments.  This Agreement, together with the exhibits and schedules attached hereto, embody the entire agreement between the parties and supersedes all prior agreements and understandings relating to the Property except for any confidentiality agreement binding on Buyer, which shall not be superseded by this Agreement.  This Agreement may be amended or supplemented only by an instrument in writing executed by the party against whom enforcement is sought.  

10.9    Time.  Time is of the essence in the performance of this Agreement.

10.10    Attorneys’ Fees.  Should either party employ attorneys to enforce any of the provisions hereof, the party against whom any final judgment is entered agrees to pay the prevailing party in such action or dispute, whether by final judgment or out of court settlement all reasonable costs, charges, and expenses, including attorneys’ fees, expended or incurred in connection therewith.  The prevailing party in any such final judgment or out of court settlement shall be the party in whose favor the majority of claims were determined.  Any judgment or order entered in any final judgment shall contain a specific provision providing for the recovery of all costs and expenses of suit, including actual attorneys' fees (collectively "Costs") incurred in enforcing, perfecting and executing such judgment.  For the purposes of this paragraph, Costs shall include, without limitation, attorneys' and experts' fees, costs and expenses incurred in the following:  (i) post judgment motions; (ii) contempt proceeding; (iii) garnishment, levy, and debtor and third party examination; (iv) discovery; and (v) bankruptcy litigation.  This Section shall survive indefinitely the Closing, close of escrow and recordation of the Deed, and shall not be deemed merged into any of the Closing documents, or the termination of this Agreement.

10.11    Notices.  All notices required or permitted hereunder shall be in writing and shall be served on the parties at the addresses set forth in Section 1.1.  Any such notices shall be either (a) sent by overnight delivery using a nationally recognized overnight courier, in which case notice shall be deemed delivered one business day after deposit with such courier, (b) sent by email in PDF format, with written confirmation by overnight or first class mail, in which case notice shall be deemed delivered upon receipt of confirmation of transmission of such email notice, or (c) sent by personal delivery, in which case notice shall be deemed delivered upon receipt.  Any notice sent by email or personal delivery and delivered after 5:00p.m. Pacific Time shall be deemed received on the next business day.  A party’s address may be changed by written notice to the other party; provided, however, that no notice of a change of address shall be effective until actual receipt of such notice.  Copies of notices are for informational purposes only, and a failure to give or receive copies of any notice shall not be deemed a failure to give notice.  Notices given by counsel to the Buyer shall be deemed given by Buyer and notices given by counsel to the Seller shall be deemed given by Seller.

10.12    Construction.  The parties acknowledge that this Agreement has been freely negotiated by both parties, that the parties and their counsel have reviewed and revised this Agreement and agree that the normal rule of construction - to the effect that any ambiguities are to be resolved against the drafting party - shall not be employed in the interpretation of this Agreement or any exhibits or amendments hereto.

10.13    Calculation of Time Periods.  All references to time are to Pacific Time Zone time (“Pacific Time”) unless expressly stated otherwise.  Unless otherwise specified, in computing any period of time described herein, the day of the act or event after which the designated period of time begins to run is not to be included and the last day of the period so computed is to be included, unless such last day is a Saturday, Sunday or legal holiday for national banks in the location where the Property is located, 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. Pacific Time.  

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10.14    Procedure for Indemnity.  The following provisions govern actions for (a) indemnity or (b) for enforcement of any warranty obligations of Seller, under this Agreement.  Promptly after receipt by an indemnitee (or Buyer with respect to a warranty claim covered by this Agreement (collectively, “indemnitee” as used in this paragraph)) of notice of any claim, such indemnitee will, if a claim in respect thereof is to be made against the indemnitor or warrantor (collectively referred to in this paragraph as an “indemnitor”), deliver to the indemnitor written notice thereof and the indemnitor shall have the right to participate in and, if the indemnitor agrees in writing that it will be responsible for any costs, expenses, judgments, damages, and losses incurred by the indemnitee with respect to such claim, to assume the defense thereof, with counsel mutually satisfactory to the parties; provided, however, that with respect to an indemnity obligation an indemnitee shall have the right to retain its own counsel, with the fees and expenses to be paid by the indemnitor, if the indemnitee reasonably believes that representation of such indemnitee by the counsel retained by the indemnitor would be inappropriate due to actual or potential differing interests between such indemnitee and any other party represented by such counsel in such proceeding.  The failure of indemnitee to deliver written notice to the indemnitor within a reasonable time after indemnitee receives notice of any such claim shall relieve such indemnitor of any liability to the indemnitee under this indemnity only if and to the extent that such failure is prejudicial to its ability to remedy or defend such action, and the omission so to deliver written notice to the indemnitor will not relieve it of any liability that it may have to any indemnitee other than under this indemnity.  If an indemnitee settles a claim without the prior written consent of the indemnitor, then the indemnitor shall be released from liability with respect to such claim unless the indemnitor has unreasonably withheld such consent.

10.15    Execution in Counterparts.  This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, and all of such counterparts shall constitute one Agreement.  To facilitate execution of this Agreement, the parties may execute and exchange by email in PDF format counterparts of the signature pages, which shall be deemed an original.

10.16    Section 1031 Exchange.  Each party may consummate the purchase and sale of all or a portion of the Property as part of a so-called like kind exchange (the “Exchange”) pursuant to Section 1031 of the Internal Revenue Code of 1986, as amended (the “Code”), provided that:  (a) 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 the exchanging party’s obligations under this Agreement; (b) the exchanging party shall effect the Exchange through an assignment of all or a portion of this Agreement, or its rights under this Agreement, to a qualified intermediary; (c) the non-exchanging party shall not be required to take an assignment of the purchase agreement for the relinquished property or be required to acquire or hold title to any real property for purposes of consummating the Exchange; and (d) the exchanging party shall pay any additional costs that would not otherwise have been incurred by either party had the exchanging party not consummated its purchase through the Exchange.  The non-exchanging party shall not by this agreement or acquiescence to the Exchange (x) have its rights under this Agreement affected or diminished in any manner, or (y) be responsible for compliance with or be deemed to have warranted to the exchanging party that the Exchange in fact complies with Section 1031 of the Code.

10.17    JURY TRIAL WAIVER.  TO THE EXTENT PERMITTED BY APPLICABLE LAW, THE PARTIES HEREBY AGREE TO WAIVE ANY RIGHT TO TRIAL BY JURY WITH RESPECT TO ANY ACTION OR PROCEEDING (I) BROUGHT BY EITHER PARTY OR ANY OTHER PARTY, RELATING TO (A) THIS AGREEMENT AND/OR ANY UNDERSTANDINGS OR PRIOR DEALINGS BETWEEN THE PARTIES HERETO, OR (B) THE PROPERTY OR ANY PART THEREOF, OR (II) TO WHICH SELLER IS A PARTY.  THE PARTIES HEREBY ACKNOWLEDGE AND AGREE THAT THIS AGREEMENT CONSTITUTES A WRITTEN CONSENT TO WAIVER OF TRIAL BY JURY PURSUANT TO ANY APPLICABLE STATE STATUTES.

10.18    Limitation of Liability.  Subject to the limits of Section 10.6 above, the obligations of Seller are intended to be binding only on the Seller’s interest in the Property (in the event this Agreement is 

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terminated) or Seller’s net proceeds from the sale of the Property (if the Closing occurs) and the obligations of Seller shall not be personally binding upon, nor shall any resort be had to, the private properties of any of its trustees, officers, directors or shareholders, the general partners, officers, directors or shareholders thereof, or any employees or agents of Seller.  The provisions of this Section 10.18 shall survive indefinitely the Closing, close of escrow and recordation of the Deed, and shall not be deemed merged into any of the Closing documents.

10.19    Further Assurances.  In addition to the acts and deeds recited herein and contemplated to be performed, executed and/or delivered by either party at Closing, each party agrees to perform, execute and deliver, but without any obligation to incur any additional liability or expense, on or after the Closing, any further deliveries and assurances as may be reasonably necessary to consummate the transactions contemplated hereby or to further perfect the conveyance, transfer and assignment of the Property to Buyer.

10.20    Tenant Audit.  In the event that Tenant has the right to inspect and audit the books, records and other documents of the landlord under the Lease which evidence the development and construction costs of the improvements, taxes, insurance and/or common area maintenance costs and expenses,  Seller hereby covenants and agrees that it shall retain such books, records and other documents which will enable Tenant to conduct a full and complete audit thereof until the date that is six (6) months after the latest date that Tenant could demand an inspection and/or audit thereof pursuant to the Lease and, upon written request therefore from Buyer, or any successor or assign, thereof, shall provide both Buyer and Tenant with reasonable access thereto and otherwise reasonably cooperate with both Buyer and Tenant with respect to such inspection and/or audit by Tenant.  In the event Tenant claims any right to a credit, refund or other reimbursement as a result of such audit relating to a period of time prior to Closing, Seller shall be responsible for payment of such credit, refund or other reimbursement. The provisions of this Section 10.20 shall survive indefinitely the Closing, close of escrow and recordation of the Deed, and shall not be deemed merged into any of the Closing documents.

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year written below.

	
		
	

SELLER:

	

PROLOGIS LOGISTICS SERVICES INCORPORATED,
a Delaware corporation

By:   Authorized Officer

By:         /s/ Mary Lang                                            
Mary Lang
Vice President of Prologis, Inc.
Date:   May 21  , 2014

	

BUYER:

	

ARCP ACQUISITIONS, LLC, a Delaware limited liability company

By:        /s/ Todd J. Weiss                                          
Name: Todd J. Weiss
Title: Authorized Officer
Date: May 21, 2014

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Escrow Agent has executed this Agreement in order to confirm that Escrow Agent shall act as escrowee with respect to and hold in escrow the Earnest Money and the interest earned thereon, and shall disburse the Earnest Money and the interest earned thereon, pursuant to the provisions of Article 9.

	
		
	

	

FIRST AMERICAN TITLE INSURANCE COMPANY

By: /s/ Barbara Brennan                                           
Name:  Barbara Brennan                                          
Title:     Senior Commercial Escrow Officer            
Date:    May 22  , 2014

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