Document:

Exhibit 10.1 DunveganPSA

1

Exhibit No. 10.1
PURCHASE AND SALE AGREEMENT
Dunvegan & Belloy (Eaglesham & Fairview) Areas, Alberta

THIS AGREEMENT is made August 10, 2015

BETWEEN:

BARNWELL OF CANADA, LIMITED, 
a corporation with an office in Calgary, Alberta, (hereinafter "Vendor” as such term is described in this Agreement)
    
- and -

CANADIAN NATURAL RESOURCES LIMITED, 
a corporation with an office in Calgary, Alberta (hereinafter referred to as the "Purchaser")

WHEREAS Vendor has agreed to sell and convey all legal and beneficial right, title and interest in and to certain assets in the Dunvegan and Belloy Areas of Alberta, whether owned, held by Barnwell of Canada, Limited in its personal capacity, or which it has right, power and authority to convey and transfer to Purchaser as agent and attorney on behalf of others holding beneficial title in certain of such assets;

AND WHEREAS Purchaser has agreed to purchase and accept all such legal and beneficial right, title, estate and interest in and to the such assets owned or held by Vendor aforesaid on the terms and conditions hereinafter set forth;

NOW THEREFORE THIS AGREEMENT WITNESSES that in consideration of the premises, mutual covenants, agreements and warranties hereinafter set forth and contained, the Parties covenant and agree as follows:

ARTICLE 1     
INTERPRETATION
		
	1.1
	Definitions

In this Agreement, including the recitals, this Clause 1.1, and the Schedules, the following capitalized words and phrases shall have the following meanings:

		
	(a)
	"Abandonment and Reclamation Obligations" means all obligations to:

		
	(i)
	abandon the Wells and restore and reclaim the surface sites thereof, to decommission and remove the facilities and equipment comprised in the Tangibles, and restore and reclaim the surface sites thereof; and

2

		
	(ii)
	reclaim and restore the lands to which the surface rights relate (including the removal of all tailings ponds and the remediation of all associated and affected sites);

all in accordance with good oil-and-gas-field practices, and in compliance with the Regulations; 
		
	(b)
	"AC2 Form" means the Petroleum Registry of Alberta Query Capital and Operating Costs – AC2(V4) form to be completed for Closing regarding gas cost allowances calculations;

		
	(c)
	"AER" means the Alberta Energy Regulator;

		
	(d)
	"AFE" means authority for expenditure, unit budget, mail ballot, cash call, or any other approval given by the holder of a working interest in the Lands or Tangibles to conduct an operation, create or incur a financial obligation or accept a risk;

		
	(e)
	"Affiliate" means any company, person, partnership or other legal entity which controls or is controlled by a Party or which controls or is controlled by a company, person, partnership, or other legal entity which controls such Party;  “control” meaning the power to direct or cause the direction of the management and policies of the Party or the other company, person, partnership, or legal entity, as the case may be, whether directly or indirectly, through one or more intermediaries or otherwise, and whether by virtue of being the Party's trustee, owning  shares or other equity interests, or holding voting rights,   contractual rights, trust instruments,  partnership interests or any other such interests.  For certainty, a partnership which is a Party and which is comprised of corporations which are Affiliates shall be deemed to be an Affiliate of each such corporation and its other Affiliates;

		
	(f)
	"Agreement" means this document, together with the Schedules attached hereto and made a part hereof;

		
	(g)
	"Arbitration" means arbitration to be undertaken in accordance with Article 9;

		
	(h)
	"Assets" means all right, title, and estate in and to the Petroleum and Natural Gas Rights, the Tangibles and the Miscellaneous Interests, either owned or held by Barnwell of Canada, Limited for itself in its personal capacity or which Barnwell of Canada, Limited holds as trustee and is empowered and authorized to sell as attorney and agent of the beneficial owners, whether such rights, title, estates and interests are beneficial or legal or both,  contingent or fixed, vested or unvested, and such term means and includes all of the interests described herein as being transferred and conveyed by Vendor, and set forth as “Vendor Interests” in Schedules “A”, “C”, “D”, “E” and “F”, but does not mean or include the Excluded Assets described in Schedule “G”;

		
	(i)
	"Business Day" means any day upon which both Parties are open for normal business in Calgary, Alberta;

		
	(j)
	"Closing" means the transfer and conveyance of the Assets from Vendor to Purchaser and the completion of other matters incidental thereto;

3

		
	(k)
	"Closing Date" means the later of:

		
	(i)
	September 16, 2015; and

		
	(ii)
	three (3) Business Days after the exercise, waiver or expiry by the effluxion of time of any and all Rights of First Refusal; or

such other time and date as may be agreed to by the Parties;

		
	(l)
	"Closing Time" means 2:00 p.m. in Calgary, Alberta, on the Closing Date:

		
	(m)
	"Conveyance Documents" means all conveyances, assignments, registerable transfers, novations, bills of sale, licence transfers, AC2 forms, RMF2 forms, and other documents or instruments, other than the General Conveyance, which are reasonably required or desirable to convey, assign and transfer to Purchaser Vendor's rights, interests and obligations in and to the Assets, and to novate Purchaser in Vendor's place and stead with respect to all agreements affecting or relating to the Assets and all of Vendor’s obligations relating thereto;

		
	(n)
	"Dollar" and "$" mean a dollar of lawful money of Canada;

		
	(o)
	"Effective Date" means 8:00 a.m. Mountain Daylight Time on April 1, 2015;

		
	(p)
	"Environment" means the components of the earth and the atmosphere and includes all layers of the atmosphere, ambient air, the soil, the surface and subsurface strata of land, groundwater and surface water (including lakes, rivers, streams, oceans and aquifers), all organic and inorganic matter and living organisms, and the interacting natural systems which include such components;

		
	(q)
	"Environmental Defect" means any Environmental Liabilities that would not be acceptable to a prudent purchaser of the Assets;

		
	(r)
	"Environmental Liabilities" means any and all environmental damage, contamination, or other adverse environmental conditions pertaining to or caused by any of the Assets or operations thereon or related thereto or existing within, upon or under the Lands, any lands upon which the Tangibles are located or any lands which are used to gain access to any of  the foregoing, however and by whomsoever caused, and whether caused by a breach of the applicable Regulations or otherwise, which occur or arise in whole or in part prior to, at or subsequent to Closing, and regardless of whether or not a reclamation certificate has been issued.  Without limiting the generality of the foregoing, such environmental damage or contamination or other environmental conditions shall include those arising from or relating to:

		
	(i) 
	surface, underground, air, ground water, surface water or marine environment contamination;

		
	(ii) 
	Abandonment and Reclamation Obligations;

4

		
	(iii) 
	the breach of the applicable Regulations in effect at any time;

		
	(iv) 
	the removal of or failure to remove foundations, structures or equipment; 

		
	(v) 
	the release, spill, escape or emission of toxic, hazardous or oilfield waste substances; and 

		
	(vi) 
	damages and losses suffered by Third Parties as a result of any of the occurrences in Paragraphs (i) through (v) of this Subclause 1.1(r); 

		
	(s)
	"Escrow Agent" means the Person designated by the Parties as escrow agent to receive, manager, and administer the Section 116 Withholding Amount pursuant to the Section 116 Escrow Agreement;

		
	(t)
	"Excluded Assets" means the assets set forth on Schedule “G” hereto under the heading “Excluded Assets”;

		
	(u)
	"Facilities" means the facilities described in Schedule "E", excluding any facilities comprised in the Excluded Assets;

		
	(v)
	"GST" means the goods and services tax exigible under and administered pursuant to the Excise Tax Act (Canada);  

		
	(w)
	"Lands" means the lands described in Schedule "A" and includes the Petroleum Substances within, upon or under such lands insofar as the Petroleum Substances are granted by the Leases;

		
	(x)
	"Leases" means collectively the leases, reservations, permits, licenses or other documents of title described in Schedule "A" which grant rights to explore for, drill for, win, take or remove the Petroleum Substances, or any replacement or renewals thereof, leases derived therefrom, or subsequent leases or other documents of title;

		
	(y)
	"Licence Transfers" means, in relation to the Assets, the transfers of any permits, approvals, licenses and authorizations granted by any applicable governmental body;

		
	(z)
	"Losses" means all actions, causes of action, losses, costs, claims, damages, penalties, assessments, charges, expenses and other liabilities whatsoever suffered, sustained, paid or incurred and includes reasonable legal fees on a solicitor-and-client basis and other professional fees and disbursements on a full-indemnity basis; but notwithstanding the foregoing shall not include any liability for indirect or consequential damages including business loss, loss of profit, economic loss, punitive damages or income tax liabilities;

		
	(aa)
	"Miscellaneous Interests" means all property, assets and rights (other than the Petroleum and Natural Gas Rights and the Tangibles) pertaining to, but only to the extent to which they pertain to, the Petroleum and Natural Gas Rights, the Tangibles or any lands with which the Lands have been pooled or unitized, including Vendor's entire undivided interest in:

5

		
	(i)
	all contracts, agreements and documents relating directly to the Petroleum and Natural Gas Rights and the Tangibles and any rights in relation thereto;

		
	(ii)
	all subsisting rights to enter upon, use and occupy the surface of any of the Lands or any lands upon which the Tangibles are located or lands which are used to gain access to any of the foregoing;

		
	(iii)
	all subsisting rights to carry out operations relating to the Lands or the Tangibles including all easements and well, pipeline, facility and other permits, licences and authorizations;

		
	(iv)
	all geological, engineering and other reports prepared for the joint account, i.e., prepared for all working interest owners, but not any other reports or interpretations or any other geophysical or geological data;

		
	(v)
	the Wells, including the wellbores of, and casings in, such Wells, but specifically excluding any wells comprised in the Excluded Assets;

		
	(vi)
	the Production Sales Contracts; and

		
	(vii)
	the Unit Interest;

		
	(bb)
	"Party" means any individual, partnership or corporation which is bound by this Agreement as Purchaser or Vendor;

		
	(cc)
	"Permitted Encumbrances" means:

		
	(i)
	easements, rights-of-way, servitudes and other similar rights in land including rights-of-way and servitudes for highways and other roads, railways, sewers, drains, gas and oil pipelines, gas and water mains , electric light, power, telephone, telegraph or cable television conduits, poles, towers, wires and cables;

		
	(ii)
	the right reserved to or vested in any government or other public authority by the terms of any statutory provision, to terminate any Leases or to require annual or other periodic payments as a condition of the continuance thereof;

		
	(iii)
	liens imposed by statute securing the payment of taxes or assessments which are not due or the validity of which Vendor is contesting in good faith;

		
	(iv)
	taxes on Petroleum Substances (excluding income taxes and GST) or the revenue therefrom and requirements imposed by statutes or governmental boards, tribunals or authorities concerning rates of production from operations on any of the Lands or otherwise affecting recoverability of Petroleum Substances from the Lands and which are generally applicable to the oil and gas industry in the jurisdiction in which the Assets are located;

		
	(v)
	the terms and conditions of all Leases or any operating agreements relating to the Assets (including Production Sales Contracts and pooling and 

6

unitization agreements), provided that any burdens, encumbrances, adverse claims and reductions, conversions and alterations of interests are described in Schedule “A”;
		
	(vi)
	rights reserved to or vested in any municipality or governmental, statutory or public authority to control or regulate any of the Assets in any manner, and all applicable laws, rules and orders of any governmental authority;

		
	(vii)
	undetermined or inchoate liens (including processors', operators' and similar liens) incurred or created as security in favour of the person conducting the operation of any of the Assets, and arising in the ordinary course of business, for Vendor's proportionate share of the costs and expenses of such operations in respect of such costs which are not due or delinquent at the relevant time;

		
	(viii)
	mechanics', builders' or materialman's liens in respect of services rendered or goods supplied, but only insofar as such liens relate to goods or services for which payment is not due or the validity of which is being diligently contested by or on behalf of Vendor;

		
	(ix)
	the reservations, limitations, provisos and conditions in any original grants from the Crown of any of the Lands or interests therein, and statutory exceptions to title;

		
	(x)
	penalties which are described in Schedule "A" and which have arisen under operating procedures or similar agreements as a consequence of Vendor's elections at the relevant time to not participate in operations on the Lands to which the penalty applies;

		
	(xi)
	liens or securities incurred, created or granted in the ordinary course of business to a public utility, municipality or governmental authority in connection with operations pertaining to the Assets; and

		
	(xii)
	all royalty burdens (including lessor's royalties), liens, adverse claims and encumbrances described in Schedule "A";

		
	(dd)
	"Person" means any individual, personal representative, corporation, partnership or other legal entity capable of entering in to binding legal obligations;

		
	(ee)
	"Petroleum and Natural Gas Rights" means the undivided interests described in Schedule “A” including working interests, royalty interests, participation interests or any other interests in respect of the Leases and the Lands or lands with which the Lands are pooled or unitized, whether legal, beneficial or both;

		
	(ff)
	"Petroleum Substances" means petroleum, natural gas and all related hydrocarbons including all liquid hydrocarbons, and all other substances whether liquids, gases or solids and whether hydrocarbon or not (excepting coal but including sulphur), produced in association with such petroleum, natural gas or related hydrocarbons, the rights to which are granted by the Leases;

7

		
	(gg)
	"Pipelines" means all pipelines set forth on Schedule "F", excluding any pipelines forming part of the Excluded Assets; 

		
	(hh)
	"Prime Rate" means a rate of interest per annum equal to the annual rate of interest which is announced from time to time by the Royal Bank of Canada in Calgary, Alberta, as its reference rate used for determining interest rates on Canadian dollar demand loans to its most credit-worthy customers;

		
	(ii)
	"Production Sales Contracts" means those contracts for the sale of Petroleum Substances produced from the Lands, or lands with which the Lands have been pooled or unitized, as described in Schedule "I";

		
	(jj)
	"Purchase Price" means the amount payable by Purchaser to Vendor pursuant to Subclause 2.2(a);

		
	(kk)
	"Regulations" means all statutes, laws, rules, orders, regulations, ordinances and other like instruments made from time to time by governments, governmental boards or agencies having jurisdiction over the Assets, the Parties or this Transaction;

		
	(ll)
	“Representatives” means, in respect of a Party:

		
	(i)
	such Party’s Affiliates; and

		
	(ii)
	the respective directors, officers, agents, employees, and consultants or advisors of such Party and its Affiliates; 

		
	(mm)
	"Right of First Refusal" means a right of first refusal, pre-emptive right of purchase or similar right whereby any Person has the right to acquire or purchase all or a portion of the Assets as a consequence of this Agreement or the Transaction herein contemplated;

		
	(nn)
	"RMF2" means the Alberta Energy Reassignment of Volume Setup/Change Form with all required attachments, to be submitted to Alberta Energy;

		
	(oo)
	"Security Interests" means any assignment, security, mortgage, charge, pledge, negative pledge, lien or other security interest whatever or however created or arising, whether absolute or contingent, fixed or floating, perfected or not, which encumbers all or any part or portion of Vendor's title in and to the Assets or any proceeds to be received hereunder, or that of its Affiliates or predecessors in title;

		
	(pp)
	"Section 116 Escrow Agreement" means the escrow agreement provided for in Clause 2.6, agreed to by the Parties as to both form and substance;

		
	(qq)
	"Take or Pay Obligations" means Vendor's outstanding obligations arising in connection with payments made to Vendor or to its predecessors in interest under or in respect of gas purchase contracts or other contracts for the sale of Petroleum Substances, which payments were made in lieu of or in consequence of the buyers under such contracts not taking delivery of Petroleum Substances, or in consideration of future deliveries of Petroleum Substances, and which obligations 

8

include obligations to deliver Petroleum Substances after the Closing Date or to repay such payments after the Closing Date; 
		
	(rr)
	"Tangibles" means:

		
	(i)
	all tangible depreciable property and assets located in, on or about the Lands, or lands with which the Lands have been pooled or unitized, or which are appurtenant thereto and which are used in connection with production, gathering, processing, injection, removal, transmission or treatment of Petroleum Substances, or operations thereon or are relative thereto or are appurtenant to or are used in connection with the Wells, the Facilities, the Pipelines and the Unit, but excluding equipment beyond the point of entry into a gathering system, plant or other facility, and excluding all tangible depreciable property and assets comprising the Excluded Assets; 

		
	(ii)
	the Facilities; and 

		
	(iii)
	the Pipelines;

		
	(ss)
	"Title Defect"  means an actual or potential defect, deficiency, discrepancy or adverse claim in or affecting Vendor's title or its interests in and to any of the Assets, which is made apparent from Purchaser's inability, following a reasonable title review process, to confirm Vendor's title to the Assets or to confirm the extent to which Vendor's interest in the Assets may be subject to encumbrances, as Vendor's title and interests are disclosed herein or described in Schedule "A"; and which is or would be sufficiently material and adverse to the enforcement or defence of title and interests, or the confirmation of encumbrances, that it would not be acceptable to a knowledgeable and prudent purchaser buying similar oil and gas properties, acting reasonably, and includes Vendor not being the beneficial owner of the interest attributed to it in Schedule "A" or holding a lesser beneficial interest than the interest attributed to it, Vendor's interest as described in Schedule "A" being subject to a royalty, net carried interest or other encumbrance not being disclosed or being misdescribed in Schedule "A" (other than a Permitted Encumbrance) or Vendor's interest as described in Schedule "A" being subject to a production penalty or conversion that either has not been disclosed or has been misdescribed therein;

		
	(tt)
	"Transaction" means Vendor’s sale of the Assets to Purchaser, Purchaser’s purchase of the Assets from, and all other transactions and activities contemplated by this Agreement with respect thereto;

		
	(uu)
	"Unit" means the scheme or schemes of unitization for the production of Petroleum Substances to which the Petroleum and Natural Gas Rights are subject, set forth in Schedule "C";

		
	(vv)
	"Unit Agreement" means the agreement or agreements pursuant to which the Unit was formed, as amended;

		
	(ww)
	"Unit Facilities" means the facilities owned or operated by the Unit and defined as “Unit Facilities” pursuant to the terms of the Unit Operating Agreement;

9

		
	(xx)
	"Unit Interest" means Vendor's entire interest in and to the Unit, including Vendor’s interests attributable to the Petroleum and Natural Gas Rights therein;

		
	(yy)
	"Unit Operating Agreement" means the Unit Operating Agreement referred to in the Unit Agreement, as amended;

		
	(zz)
	"Unit Wells" mean the producing, shut‐in, suspended, abandoned, water-source or injection wells comprised in the Unit;

		
	(aaa)
	"Vendor" means both Barnwell of Canada, Limited in its personal capacity as vendor of those Assets owned and held by it for and by itself, and Barnwell of Canada, Limited in its capacity as agent and attorney authorized and empowered to convey and transfer to Purchaser those Assets it holds in trust on behalf of other Persons; and

		
	(bbb)
	"Wells" mean the producing, shut‐in, suspended, water-source or injection wells described in Schedule “D”, and shall include all Unit Wells.

		
	1.2
	Schedules

The following schedules (the "Schedules") are attached to, form part of, and are incorporated into this Agreement:

		
	(a)
	Schedule "A": Petroleum and Natural Gas Rights (Leases, Lands, Vendor’s Interest, Encumbrances);

		
	(b)
	Schedule "B": Rights of First Refusal;

		
	(c)
	Schedule "C": Unit;

		
	(d)
	Schedule “D”: Wells;

		
	(e)
	Schedule "E": Facilities;

		
	(f)
	Schedule "F": Pipelines;

		
	(g)
	Schedule "G": Excluded Assets

		
	(h)
	Schedule “H”: AFEs;

		
	(i)
	Schedule "I": Production Sales Contracts;

		
	(j)
	Schedule "J": the form of the general conveyance; and

		
	(k)
	Schedule “K”: the form of the certificate to be provided pursuant to Article 10. 

		
	1.3
	References

The references "hereunder", "herein" and "hereof" refer to the provisions of this Agreement, and references to Articles, Clauses, Subclauses, Paragraphs or Subparagraphs herein refer to Articles, Clauses, 

10

Subclauses, Paragraphs or Subparagraphs of this Agreement.  Any reference to time shall refer to Mountain Standard Time or Mountain Daylight Savings Time during the respective intervals in which each is in force.

		
	1.4
	Headings

The headings of the Articles, Clauses, Schedules and any other headings, captions or indices herein are inserted for convenience of reference only and shall not be used in any way in construing or interpreting any provision hereof.

		
	1.5
	Included Words

In this Agreement words importing the singular include the plural and vice versa, words importing one gender include other genders, words importing individuals also include firms and corporations and vice versa, as the context may require; and "including", "includes" and like terms mean "including without limitation" and "includes without limitation".

		
	1.6
	Knowledge and Awareness

Where in the Agreement a representation and warranty is made on the basis of Vendor's knowledge, such knowledge or awareness consists of the actual knowledge or awareness of Vendor's current officers and employees whether acting for the Vendor in its personal capacity or in its capacity as agent and attorney for the transfer and conveyance of the Assets, after having made reasonable inquiries and review of Vendor’s files or records, and does not include knowledge or awareness of any other Person.

		
	1.7
	Interpretation if Closing does not Occur

If Closing does not occur, each provision of this Agreement which presumes that Purchaser has acquired the Assets hereunder shall be construed as having been contingent upon Closing having occurred.

		
	1.8
	Invalidity of Provisions

If any of the provisions of this Agreement should be determined to be invalid, illegal or unenforceable in any respect, the validity, legality or enforceability of the remaining provisions herein shall not in any way be affected or impaired thereby provided there is no material and adverse effect to the bargain made between the Parties pursuant to this Transaction.

11

		
	1.9
	Conflicts

If there is a conflict or inconsistency between the provisions of this Agreement and those of a Schedule, the provisions of this Agreement shall prevail.
		
	1.10
	Regulations

Any reference to a statute shall include and shall be deemed to be a reference to such statute and to the regulations made pursuant thereto, and all amendments made thereto and in force at the date hereof.
		
	1.11
	Negotiated Transaction  

The Parties have participated jointly in the negotiation and drafting of this Agreement and, in the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as having been jointly drafted by the Parties, and no presumption or burden of proof shall arise favoring or disfavoring any Party by virtue of the authorship of any provision of this Agreement.

ARTICLE 2     
PURCHASE AND SALE

		
	2.1
	Purchase and Sale Agreement

Subject to the terms and conditions set forth herein, and for the consideration provided herein, Purchaser agrees to purchase the Assets from Vendor, and Vendor agrees to sell the Assets to Purchaser.

		
	2.2
	Purchase Price

		
	(a)
	The Purchase Price for the Assets is Twenty-Nine Million Six Hundred Thousand Dollars ($29,600,000.00), subject to the apportionments and adjustments provided for in Article 4 and such other reductions as may be made pursuant to Articles 7 and 8.

		
	(b)
	At Closing, in addition to the Purchase Price referred to in Subclause 2.2(a) above, Purchaser shall also remit to Vendor the five percent (5%) GST applicable to that portion of the Purchase Price allocated to the Miscellaneous Interests and Tangibles, being Two Hundred and Ninety-Six Thousand Dollars ($296,000.00).  Barnwell shall remit to the appropriate governmental agency on a timely basis all applicable GST. The GST registration number of Barnwell is 100401702 RT1001.

		
	2.3
	Allocation of Purchase Price

		
	(a)
	Vendor and Purchaser hereby allocate the Purchase Price among the Assets as follows:

(i)    to Petroleum and Natural Gas Rights         $23,680,000.00
(ii)    to Tangibles                    $  5,919,999.00
(iii)    to Miscellaneous Interests                     $                1.00
     Total                       $ 29,600,000.00

12

		
	2.4
	Payment of Purchase Price

		
	(a)
	Subject to the withholding of the Section 116 Withholding Amount pursuant to Clause 2.6 which Purchaser shall pay to the Escrow Agent pursuant to Subclause 2.6(b)(ii), at Closing Purchaser shall pay to Vendor, by single bank draft or wire transfer, the Purchase Price owed to Vendor, as adjusted pursuant to this Agreement, and any GST thereon, together with any interest payable pursuant to Clause 2.5.  

		
	(b)
	Should any portion of the funds paid by Purchaser to Vendor under Subclause 2.4(a), including any interest in lieu set forth in Clause 2.5 below, be payable by Vendor to any Person under any trust, agency or power of attorney arrangement with such Person, upon receipt of funds from Purchaser pursuant to Subclause 2.4(a), Vendor shall promptly pay such Person its correct proportionate sum, subject to any withholding of the Section 116 Withholding Amount pursuant to Clause 2.6. This obligation shall be the sole responsibility of Vendor and shall survive Closing, and Vendor shall be liable for, and shall save, indemnify and hold harmless Purchaser from any Losses of any kind resulting from Vendor’s failure to fully perform such obligation.

2.5        Interest in Lieu

At Closing, Purchaser shall pay to Vendor an amount equal to the interest which would have accrued on the Purchase Price from and including the Effective Date to and including the day prior to the Closing Date, calculated daily at the Prime Rate from time to time during such period and not compounded.

2.6        Compliance Certificates and Withholding Tax

		
	(a)
	Each Party hereby authorizes the other Party to take any actions necessary to ensure full compliance with section 116 and all other provisions of the Income Tax Act (Canada) to the extent such compliance is made necessary by this Transaction, and shall provide to the other Party all reasonable assistance in respect thereof.  Specifically, Purchaser shall authorize and provide all necessary assistance to Vendor to enable Vendor to obtain, any and all correct and accurate certificates of compliance which may be required pursuant to subsection 116(4) of the Income Tax Act (Canada) (“Compliance Certificates”).

		
	 (b)
	Vendor and Purchaser acknowledge that pursuant to section 116 of the Income Tax Act (Canada) Purchaser is required to, and is authorized by Vendor to, withhold at Closing one half (1/2) of the Purchase Price net of apportionments and adjustments provided for in Article 3 (the "Section 116 Withholding Amount"). Vendor and Purchaser shall sign and deliver at Closing the Section 116 Escrow Agreement, which shall instruct the Escrow Agent with respect to the holding, remitting and releasing of the Section 116 Withholding Amount.

		
	(c)
	At Closing, Purchaser shall deliver to the Escrow Agent the Section 116 Withholding Amount to be held, released or remitted, as the case may be.

13

		
	(d)
	Vendor acknowledges that it may be required to provide notice to the Canada Revenue Agency in respect of the sale of the Assets within ten (10) days of the date of such sale to avoid the imposition of a monetary penalty and, in addition, may be required to file a Canadian income tax return for the taxation year that includes the date of the sale of the Assets. Vendor shall fully comply on a timely basis with any such Canada Revenue Agency obligations, and shall be liable for and shall save, indemnify and hold Purchaser harmless from any loss, harm, prejudice or injury of any kind to Purchaser resulting from its failure to fully comply on a timely basis with such obligations.  

		
	(e)
	The obligations of the Parties pursuant to this Clause 2.6 shall survive Closing. 

		
	(f)
	Vendor’s Canada Revenue Agency assigned tax account number is 100401702RC0001.

ARTICLE 3     
CLOSING
		
	3.1
	Place of Closing

Unless the Parties otherwise agree, in writing, Closing shall take place at the Closing Time at Vendor's offices at Suite 2410, 500 – 4th Avenue SW in Calgary, Alberta.

		
	3.2
	Effective Date of Transfer

Provided that Closing occurs, the transfer and assignment of the Assets from Vendor to Purchaser shall be effective as of the Effective Date, provided that possession of the Assets shall not pass to Purchaser until Closing occurs.  In accordance with Clause 5, Vendor shall maintain the Assets on Purchaser's behalf between the Effective Date and the Closing.

		
	3.3
	Closing and Post-Closing Deliveries

		
	(a)
	At Closing, Barnwell shall execute, where applicable, and deliver to Purchaser:

		
	(i)
	a general conveyance, in the form attached as Schedule "J";

		
	(ii)
	all Conveyance Documents, including all RMF2s and AC2s, provided that such documents shall not require Vendor to assume or incur any obligation or to provide any representation or warranty beyond that contained in this Agreement;

		
	(iii)
	copies of all consents to disposition and applicable waivers of Rights of First Refusal obtained by Vendor with respect to this Transaction, other than customary post-closing consents;

		
	(iv)
	the certificate required by Subclauses 10.2(a) and (d) substantially in the form attached as Schedule “L”;

14

		
	(v)
	"no interest" letters, and discharges of any Security Interests from the holder thereof; 

		
	(vi)
	receipt for payment of the amounts hereunder payable to Vendor by Purchaser at Closing; 

		
	(vii)
	the Section 116 Escrow Agreement; and

		
	(viii)
	such other documents as may be specifically required hereunder or as Purchaser may  reasonably request by reasonable notice to Vendor, including reasonable evidence of Vendor’s capacity and authority to convey and transfer all of the Assets to the Purchaser.

		
	(b)
	At Closing, Purchaser shall execute, where applicable, and deliver to Vendor:

		
	(i)
	the Purchase Price in accordance with Clause 2.2, subject to any adjustments provided for in this Agreement, the Section 116 Withholding Amount provided for in Clause 2.6, applicable GST, and the amount in interest in lieu in accordance with Clause 2.5;

		
	(ii)
	a general conveyance in the form attached as Schedule “J”;

		
	(iii)
	the certificate required by Subclause 10.3(d) substantially in the form attached as Schedule “K”; 

		
	(iv)
	 the Section 116 Escrow Agreement; and

		
	(v)
	such other documents as may be specifically required hereunder.

		
	(c)
	Five (5) Business Days before the Closing Date Vendor shall prepare and deliver drafts of the Conveyance Documents to Purchaser for Purchaser's review and approval.

		
	(d)
	Within fifteen (15) Business Days of the Closing Date, originals, or where originals are not available, copies of Vendor's records, files, reports and data pertaining to the Assets, insofar as such delivery is permitted and required hereunder, unless and to the extent to which Purchaser agrees to allow Vendor to deliver such records, files, reports and data at a later date.

		
	3.4
	Costs of Registration

Purchaser shall bear all costs incurred in registering all registrable Conveyance Documents and all costs of preparing and registering any further assurances documents required to convey the Assets to it.  Purchaser shall register all such conveyances promptly after Closing.

15

ARTICLE 4     
APPORTIONMENTS
		
	4.1
	Apportionments

		
	(a)
	Except as provided below in this Clause 4.1, the net amount of all benefits and obligations of every kind and nature relating to the operation of the Assets and accruing, payable or paid and received or receivable in respect of the Assets including mineral and surface lease rentals, property taxes, maintenance, development, capital and operating costs, gas cost allowances, proceeds from the sale of production, and revenues from processing and transportation fees charged to third parties (other than income taxes), shall be apportioned between the Parties as of the Effective Date, on an accrual basis regarding the interim statement of adjustments and on an actual basis regarding the final statement of adjustments.

		
	(b)
	An interim accounting and adjustment shall be conducted for Closing and Vendor shall prepare and forward a draft interim statement of adjustments to Purchaser not less than five (5) Business Days prior to the Closing Date, for Purchaser's review.

		
	(c)
	Within one hundred eighty (180) days of the Closing Date (the "Adjustment Period") Vendor shall prepare and forward to Purchaser a final accounting and adjustment (the "Final Statement of Adjustments" or the "FSOA").  Purchaser shall have thirty (30) days from receipt of the FSOA to review same.  Subject to Subclauses (d) and (e) of this Clause 4.1, settlement of accounts will be considered concluded when the Parties agree, evidenced by them signing the FSOA which expressly states that it is the final statement of all adjustments.  The Parties shall not be obligated to make any adjustments after the Adjustment Period unless such adjustment has been specifically requested, by notice, within the Audit Period as defined in Subclause (d) hereof.

		
	(d)
	During the one (1) year period following the date after which the Final Statement of Adjustments has been signed by both Parties (the "Audit Period"), Purchaser may audit Vendor's books, records and accounts respecting the Assets, for effecting adjustments pursuant to this Article 4.  Such audit shall be conducted upon reasonable notice to Vendor at Vendor's offices during Vendor's normal business hours, and shall be conducted at Purchaser's sole expense.  Any claims of discrepancies disclosed by such audit shall be made in writing to Vendor within thirty (30) days following the completion of such audit and Vendor shall respond in writing to any such claims of discrepancies within thirty (30) days of receipt of such claims.

		
	(e)
	Notwithstanding the preceding Subclauses of this Clause 4.1, any adjustments established by an audit conducted pursuant to the Regulations or the provisions of the Leases or governing agreements with respect to Crown Royalty audits, joint venture audits or thirteenth-month adjustments which are outstanding at the Closing Time, or which occur after the Closing Time, shall be made as they occur in accordance with the provisions of existing Regulations or governing agreements, and shall be received or paid by the Party thereto entitled or thereby obliged.

16

		
	(f)
	Vendor shall not be entitled to charge Purchaser for any of Vendor's administrative or overhead fees.

		
	(g)
	As required by law, GST shall be payable and applied to adjustments and shall be paid by the applicable Party.

		
	(h)
	Each Party agrees to make any payment required of it as a result of the adjustments provided for in this Clause 4.1 within thirty (30) days of being notified of the determination of the amount owing.

		
	(i)
	To the extent to which the Parties cannot agree to the accounting provided for in this Clause 4.1, either Party may refer the matter for determination in accordance with Article 9.

  
ARTICLE 5     
INTERIM PROVISIONS AND POST-CLOSING TRANSITION
		
	5.1
	Maintenance of Assets

From the time of the execution and delivery of this Agreement by the Parties until the earlier of the Closing Time or the termination of this Agreement, to the extent to which the nature of its interest permits and subject to the terms of this Agreement and to the Leases and any other agreements and documents to which the Assets are subject, Vendor shall use reasonable efforts to:

		
	(a)
	maintain the Assets in a proper and prudent manner in accordance with good oil and gas industry practices and in material compliance with all applicable Regulations;

		
	(b)
	maintain current insurance policies, if any;

		
	(c)
	pay or cause to be paid all costs and expenses relating to the Assets which become due from the date hereof to the Closing Date; and

		
	(d)
	perform and comply with all covenants and conditions in the Leases and any other agreements and documents to which the Assets are subject.

		
	5.2
	Material Commitments

		
	(a)
	From the date hereof to the Closing Time, Vendor shall not, without Purchaser's prior written consent:

		
	(i)
	voluntarily assume any obligation or commitment with respect to the Assets, where Vendor's share of the expenditure associated with such obligation or commitment is estimated to exceed $25,000.00;

		
	(ii)
	surrender or abandon any of the Assets;

17

		
	(iii)
	amend or terminate any Leases or any agreement to which the Assets are subject, or enter into any material new agreement respecting the Assets;

		
	(iv)
	subject to Subclause 5.2(b), propose or initiate the exercise of any right (including bidding rights at Crown sales, rights under area-of mutual-interest provisions and Rights of First Refusal) or option relative to the Assets, or arising as a result of the ownership of the Assets, or propose or initiate any operations on the Lands which Vendor has not commenced or committed to as of the date hereof or the Effective Date, if such exercise or option would result in Purchaser incurring an obligation hereunder after the Effective Date or a material adverse effect on the value of any of the Assets;

		
	(v)
	sell, transfer, surrender, abandon or otherwise dispose of the Assets, except to the extent required to comply with Rights of First Refusal;

		
	(vi)
	resign or take any action which would result in Vendor’s resignation or replacement as operator of any of the Assets for which Vendor is the current operator; or 

		
	(vii)
	grant a security or any encumbrance with respect to any of the Assets;

provided, however, that Vendor may assume such obligations or commitments and propose or initiate such operations or the exercise of any such right or option without Purchaser's prior consent if Vendor reasonably determines that such expenditures or actions are necessary for the protection of life or property or to otherwise deal with an emergency, in which case Vendor shall promptly notify Purchaser of such intention or actions and Vendor's estimate of the costs and expenses associated therewith.

		
	(b)
	If an operation or the exercise of any right or option available to Vendor with respect to the Assets is proposed in circumstances in which such operation or the exercise of such right or option would result in Purchaser incurring an obligation pursuant to Subclause 5.2(a), the following Paragraphs shall apply to such operation or the exercise of such right or option (hereinafter referred to as the "Proposal"):

		
	(i)
	Vendor shall promptly give Purchaser notice of the Proposal, describing the particulars in reasonable detail;

		
	(ii)
	Purchaser shall, not less than Twenty‐four (24) hours prior to the time Vendor is required to make its election with respect to the Proposal, advise Vendor, by notice, whether Purchaser wishes Vendor to exercise Vendor's rights with respect to the Proposal on Purchaser's behalf, provided that Purchaser's failure to make such election within such period shall be deemed to be Purchaser's election to participate in the Proposal;

18

		
	(iii)
	Vendor shall use all commercially reasonable efforts to make the election authorized by Purchaser with respect to the Proposal within the period during which Vendor may respond to the Proposal; and

		
	(iv)
	Purchaser's election to not participate in any Proposal required to preserve the existence of any of the Assets or to avoid a penalty or similar loss or cost shall not entitle Purchaser to any reduction of the Purchase Price by reason thereof, and such termination shall not constitute a failure of Vendor's representations and warranties pertaining to such Assets, notwithstanding Clause 6.3.

		
	5.3
	Post-Closing Transition 

Following Closing and to the extent to which Purchaser is required to be novated into operating agreements or other agreements or documents to which the Assets are subject, until the novation has been effected:

		
	(a)
	Vendor shall not initiate any operation with respect to the Assets, except upon receiving Purchaser's written instructions, or if Vendor reasonably determines that such operation is required for the protection of life or property or to otherwise deal with an emergency, in which case Vendor may take such actions as it reasonably determines are required without Purchaser's written instructions, but shall promptly notify Purchaser of such intention or actions and of Vendor's estimate of the costs and expenses associated therewith;

		
	(b)
	Vendor shall forthwith deliver to Purchaser all revenues, proceeds and other benefits received by Vendor with respect to the Assets during such post-closing period, provided that Vendor shall not be permitted to deduct from such revenues, proceeds and other benefits any other costs and expenses which it incurs as a result of such delivery to Purchaser; 

		
	(c)
	Vendor shall, in a timely manner, deliver to Purchaser:

		
	(i)
	all third party notices and communications received in respect of the Assets, including AFEs and mail ballots;

		
	(ii)
	all notices of any events or occurrences affecting the Assets, including:

		
	(A)
	any spill or other incident involving environmental damage, environmental contamination or other environmental problems relating to or caused by the Assets;

		
	(B)
	any order, directive or notification pursuant to the Regulations; and

		
	(C)
	any event or incident relating to a workplace safety hazard; and 

if received on a timely basis Vendor shall respond to such notices pursuant to Purchaser's written instructions, , provided that Vendor may refuse to follow any instructions which it reasonably believes to be unlawful, unethical or in conflict 

19

with any applicable agreement or contract, and provided that nothing shall preclude Vendor from taking such actions as Vendor reasonably determines are necessary for the protection of life or property, or as are required by the Regulations;

		
	(d)
	Vendor shall, in a timely manner, deliver to third parties all such notices and communications which Purchaser may reasonably request and all such monies and other items as Purchaser may reasonably provide in respect of the Assets, provided that Vendor may (but shall not be obligated to) refuse to follow instructions which it reasonably believes to be unlawful, unethical or in conflict with any applicable agreement or contract; 

		
	(e)
	until October 1, 2015, Vendor shall pay all rentals and similar payments required to preserve any of the Leases and any surface leases; 

		
	(f)
	where Vendor is the operator of the Assets, or any portion thereof, and in such capacity is responsible for the production accounting functions pertaining to the Assets, or any portion thereof, Vendor shall continue to perform such production accounting functions through September 30, 2015; and

		
	(g)
	the Parties acknowledge that Suncor Energy Marketing Inc. (“Suncor”) is currently holding, on Barnwell’s behalf, Nova Gas Transmission Limited firm service at a point known as the Dunvegan meter station #2044, pursuant to the Production Sales Contracts. To assist Purchaser to handle transition of these arrangements on a timely basis, within five (5) Business Days of the execution of this Agreement, Vendor shall authorize in writing Purchaser to communicate, negotiate and contract with Suncor directly to effect the appropriate transition arrangements Purchaser desires, and shall provide Purchaser with details of any upcoming renewals or terminations of such Production Sales Contracts. In addition, if any election is required to be made by Vendor with respect to such Production Sales Contracts prior to Closing, insofar as possible, Vendor shall make such election for Vendor in accordance with the instructions of Purchaser, and under no circumstance shall Barnwell allow service to expire under the Production Sales Contracts without the prior written approval of the Purchaser.

		
	5.4
	Licence Transfers

		
	(a)
	Within two (2) Business Days following Closing, Vendor shall prepare and, where applicable, electronically submit an application to the applicable governmental bodies for Licence Transfers and Purchaser or its nominee shall, where applicable, electronically ratify and sign such application.

		
	(b)
	If the AER or other governmental body denies a Licence Transfer because of misdescription or other minor deficiencies in the application, Vendor shall, within two (2) Business Days of such denial, correct the application and amend and re-submit the application for the Licence Transfer and Purchaser or its nominee shall, where applicable, electronically ratify and sign such application.

		
	(c)
	If, for any reason, the AER or other governmental body requires a Party or its nominee to make a deposit or furnish any other form of security in order to approve 

20

a Licence Transfer, such Party shall make such deposit or furnish such other form of security as is required and shall forthwith notify the other Party of such requirement.
		
	(d)
	If a Party fails to perform any obligations requested, ordered or directed by the AER or other governmental body respecting Environmental Liabilities, and the AER or other governmental body refuses to approve a Licence Transfer as a result thereof, the other Party shall be entitled to enter upon and access the Assets to perform such obligations for and on behalf of the first Party without liability by the other Party to the first Party for trespass or otherwise, and the first Party shall reimburse the other Party for all costs, charges and expenses incurred by the other Party in the performance of such obligations, by providing payment thereof to the other Party within thirty (30) days of the other Party's delivery to the first Party of an invoice for such costs, charges and expenses together with interest thereon at a rate equal to the sum of the Prime Rate plus a rate of two percent (2%) from the date at which such costs, charges and expenses are incurred or paid by the other Party until such reimbursement is made. Any costs incurred to address the foregoing obligations shall be adjusted between Vendor and Purchaser in accordance with Clause 4.1, provided, however, that penalties and like expenses and the interest payable under this Subclause 5.4(d) shall be to the account of the Party who failed to perform the obligations.

		
	5.5
	Vendor Deemed Purchaser's Agent

		
	(a)
	Insofar as Vendor maintains the Assets and takes actions thereto on Purchaser's behalf pursuant to this Article 5, Vendor shall be deemed to have been Purchaser's agent hereunder.  Purchaser ratifies all actions taken by Vendor or refrained from being taken by Vendor pursuant to this Article 5 in such capacity during such period, with the intention that all such actions shall be deemed to be Purchaser's.

		
	(b)
	Insofar as Vendor participates in either operations or the exercise of rights or options as Purchaser's agent pursuant to this Article 5, Vendor may require Purchaser to secure costs to be incurred by Vendor on Purchaser's behalf pursuant to such election in such manner as may be reasonably appropriate in the circumstances.

		
	(c)
	Purchaser shall indemnify Vendor and its Representatives against all Losses which Vendor or Representatives may suffer or incur as a result of Vendor maintaining the Assets as Purchaser's agent pursuant to this Article 5, insofar as such Losses are not a direct result of the gross negligence or wilful misconduct of Vendor or of its Representatives.  An action or omission of Vendor or of Representatives shall not be regarded as gross negligence or wilful misconduct to the extent to which it was done or omitted from being done in accordance with Purchaser's instructions or concurrence.

		
	5.6
	Transfer of Operatorship

Purchaser acknowledges that Vendor may not be able to transfer operatorship of some or all of the Assets to Purchaser at or after Closing.  Vendor covenants with Purchaser that Vendor shall 

21

reasonably cooperate with Purchaser to obtain appropriate consents and approvals for the assignment and transfer to Purchaser of operatorship of those of the Assets of which Vendor is currently the Operator.

		
	5.7
	Removal of Signs

At and after Closing, Vendor may remove any signs which indicate its ownership or operation of the Assets.  Purchaser will be responsible for erecting or installing signs required by governmental agencies to indicate that Purchaser is the operator of the Assets and to notify other working interest owners, gas purchasers, suppliers, contractors, governmental agencies and other Persons of Purchaser's interest in the Assets on and after Closing.

ARTICLE 6     
REPRESENTATIONS AND WARRANTIES
		
	6.1
	Representations and Warranties of Vendor

As of the date hereof, Barnwell of Canada, Limited represents and warrants to Purchaser (unless otherwise specified herein, in both its personal capacity and in its capacity as agent and attorney on behalf of other Persons) that with respect to the transfer and conveyance of the Assets:

		
	(a)
	Corporate Standing:  Vendor is a corporation duly incorporated and validly subsisting under the laws of its jurisdiction of incorporation and is authorized to carry on business in the jurisdiction(s) in which the Assets are located;

		
	(b)
	Requisite Authority:  Vendor has taken all necessary corporate action and has all requisite power and authority to enter into this Agreement and to perform its obligations under this Agreement, and where Vendor acts herein in the capacity as agent and attorney on behalf of other Persons for the transfer and conveyance of their interests in and to the Assets, Vendor represents that such right, power and authority has been duly and properly delegated to Vendor in accordance with a power of attorney duly executed by such Persons that at the date of this Agreement is, and at the date of Closing remains, a legally enforceable power of attorney authorizing and empowering Vendor with all right, power and authority to sell such Assets to Purchaser in accordance with the terms of this Agreement and to fulfill and perform all obligations provided herein;

		
	(c)
	Execution and Enforceability of Documents:  this Agreement and all other documents contemplated herein have been duly executed and delivered by Vendor and:

		
	(i)
	 constitute legal, valid, binding and enforceable obligations of Vendor in both its personal capacity or in its capacity as agent and attorney, as the case may be; and 

		
	(ii)
	constitute legal, valid, binding and enforceable obligations of against those Persons for whom Vendor acts hereunder as agent and attorney for the sale of their Assets hereunder;

22

		
	(d)
	No Conflicts:  Vendor's consummation of the Transaction herein contemplated will not, in any material respects, violate or conflict with any of Vendor’s constating documents, by‐laws or governing documents, or with any provision of any material agreement or instrument to which Vendor is party or by which Vendor or the Assets is bound, or with any judgment, decree, order, statute, rule or Regulation applicable to Vendor or the Assets;

		
	(e)
	Residency:  Vendor is a non‐resident of Canada within the meaning of section 116 of the Income Tax Act (Canada), and Vendor has, and shall have at Closing, complied with any requirements of the Income Tax Act (Canada) that may be applicable at that time, when and to the extent that this Transaction is subject to the requirements thereof;

		
	(f)
	Title:  although Vendor does not warrant title to the Assets and except for Permitted Encumbrances;

		
	(i)
	it has done no act or thing and is aware of no circumstance, matter, document or thing whereby any of the Assets may be cancelled or determined and the Assets are free and clear of any and all encumbrances and Security Interests;

		
	(ii)
	other than as described in Schedule "A", none of the Petroleum and Natural Gas Rights are subject to reduction or conversion by reference to payout of any well or otherwise; and

		
	(iii)
	subject to the rents, covenants, conditions and stipulations in the Leases and any other agreements pertaining to the Assets and on the lessee's or holder's part thereunder to be paid, performed and observed, Purchaser may enter into and upon, and hold and enjoy the Assets for the residue of the respective terms of the Leases, such other agreements relating to the Assets and all renewals or extensions thereof as to the interests hereunder assigned, for Purchaser's own use and benefit without any interruption of or by Vendor or any other Person whomsoever claiming by, through or under Vendor, including any Persons for whom Vendor acts as agent and attorney for the transfer and conveyance of the Assets;

		
	(g)
	No Knowledge of Defaults:  Vendor has no knowledge of, nor has it been informed of, any material default or notice of material default relating to the Assets, or any of them;

		
	(h)
	Finders' Fees:  Vendor has not incurred any obligation or liability, contingent or otherwise, for brokers' or finders' fees in respect of the Transaction for which Purchaser shall have any obligation or liability;

		
	(i)
	No Lawsuits or Claims:  there are no claims, proceedings, actions, lawsuits, administrative proceedings or governmental investigations in existence, contemplated or threatened against or with respect to Vendor in either its personal capacity or its capacity as agent and attorney for the transfer and conveyance of the Assets, or with respect to the Assets;

23

		
	(j)
	Payment of Taxes:  all ad valorem, property, production, severance and similar taxes and assessments based on or measured by the ownership of the Assets or the production of Petroleum Substances therefrom or the receipt of proceeds therefrom payable by Vendor prior to the Effective Date and for all prior years have been properly and timely paid and discharged;

		
	(k)
	Payment of Royalties:  all rentals, royalties and other amounts due under the Leases and payable by Barnwell prior to the Effective Date and for all prior years have been properly and timely paid and discharged;

		
	(l)
	Compliance:   Vendor has complied with, performed, observed and satisfied all material terms, conditions, obligations and liabilities which have heretofore arisen and were Barnwell's obligations under any of the provisions of any agreement affecting the Assets or any then-existing statute, order, writ, injunction or decree of any governmental agency or court relating to the Assets;

		
	(m)
	Documents:  Vendor has made all reasonable inquiries and searches for material documents and information, it has delivered or made available to Purchaser all documents, instruments, records and books relevant to Barnwell's title to the Lands and the Leases and in Barnwell's possession or to which it has reasonable access;

		
	(n)
	Worker's Compensation:  Vendor is not in default of any amounts required to be paid to any workers’ compensation board under any applicable laws or the Regulations, for which Purchaser shall have any obligation or liability;

		
	(o)
	AFEs:  other than the AFEs described in Schedule “H”, there are no outstanding AFEs applicable to the Assets;

		
	(p)
	Material Contracts:  except for the Production Sales Contracts described in Schedules “C”, “G” and “I”, there are no:

		
	(i) 
	gas balancing or similar agreements pertaining to the Petroleum Substances or any of them;

		
	(ii) 
	agreements for the sale, dedication, transportation, processing or disposal of the Petroleum Substances or any of them, or substances produced in connection with the Petroleum Substances or any of them; or

		
	(iii) 
	agreements for the contract operation by any Person of the Assets or any of them;

		
	(q)
	Operations:   

		
	(i)
	where Vendor is or has been the operator, all operations related to the Assets have been conducted in compliance with the Regulations and in accordance with good oil and gas industry practices; and 

24

		
	(ii)
	where Vendor is not the operator, to Barnwell’s knowledge, all operations related to the Assets have been conducted in compliance with the Regulations and in accordance with good oil and gas industry practices; 

		
	(r)
	Environmental:  Vendor is not aware of and has not received:

		
	(i)
	any claims, orders or directives which relate to environmental matters or Environmental Liabilities and which require any work, repairs, construction or capital expenditures with respect to the Assets, where such orders or directives have not been complied with; or

		
	(ii)
	any claims, demands or notices issued with respect to the breach of any environmental, health or safety law applicable to the Assets, including without limitation, respecting the use, storage, treatment, transportation or disposition of environmental contaminants, which demand or notice remains outstanding;

		
	(s)
	Area of Mutual Interest:  At Closing, the Assets will not be subject to any agreements which provide for areas of mutual interest or areas of exclusion;

		
	(t)
	Take or Pay Obligations:  the Assets are not subject to any outstanding Take or Pay Obligations;

		
	(u)
	Rights of First Refusal:  the Assets are not subject to any operative Rights of First Refusal of third Persons except for those set forth in Schedule “B”;

		
	(v)
	Penalties:  except as described in Schedule "A", Vendor has not elected or refused to participate in any exploration, development or other operation on the Lands, which has given or may give rise to penalties or forfeitures;

		
	(w)
	Production Penalties:  except as described in Schedule "A", the Wells are not subject to any production penalty or similar production restriction of any nature and Vendor has not received notice of any change or proposed change in the government-established production allowables for any of the Wells that are not generally applicable;

		
	(x)
	Offset Obligations:  to Vendor’s knowledge, there are no offset obligations arising under any of the Leases, including any unsatisfied obligation to drill a well or surrender rights or an obligation to pay compensatory royalties;

		
	(y)
	No Excluded Assets:  there are no Miscellaneous Interests or Tangibles excluded from the Assets except those set forth in Schedule “G”;

		
	(z)
	Condition of Tangibles:  Vendor’s interest in and to all property, assets, interests and rights comprising the Tangibles is equivalent to Vendor’s interest in and to the corresponding Petroleum and Natural Gas Rights and, to Vendor’s knowledge, the Tangibles have been constructed, maintained and operated in accordance with good oil and gas field practices and with the material requirements of the Regulations and none of the Tangibles is leased or rented;

25

		
	(aa)
	Material Loss or Damage: there has been no change in the Assets subsequent to the Effective Date other than in consequence of and in the ordinary course of operation and production which has or would have a material adverse effect on the value, use or operation thereof;

		
	(bb)
	Well Abandonment:  Barnwell has not received notice under the Regulations to abandon any Well which has not been properly abandoned in accordance with the Regulations; and 

		
	(cc)
	Licensee Liability Rating:  where Barnwell is the licensee of the Wells and a registrant with the AER, Barnwell’s Licensee Liability Rating:

		
	(i)
	at the date this Agreement is executed, is greater than or equal to 1.0;

		
	(ii)
	as a result of the consummation of this Transaction, shall continue to be greater than or equal to 1.0; and

		
	(iii)
	at the time the AER considers approval of any Conveyance Documents that require its approval, shall be greater than or equal to 1.0.

		
	6.2
	Purchaser's Representations and Warranties

As of the date hereof, Purchaser represents and warrants to Vendor that:

		
	(a)
	Corporate Standing:  Purchaser is a corporation, duly incorporated and validly subsisting under the laws of the jurisdiction of its formation incorporation, and is authorized to carry on business in all jurisdictions in which the Assets are located;

		
	(b)
	Requisite Authority:  Purchaser has taken all necessary corporate action and has all requisite power and authority to enter into this Agreement and to perform its obligations under this Agreement;

		
	(c)
	Execution and Enforceability of Documents:  this Agreement and all other documents contemplated herein have been duly executed and delivered by Purchaser and constitute legal, valid, binding and enforceable obligations of Purchaser;

		
	(d)
	No Conflicts:  Purchaser's consummation of the transaction herein contemplated will not, in any material respects, violate or conflict with any of Purchaser's constating documents, by‐laws or governing documents or with any provision of any material agreement or instrument to which Purchaser is a party or by which Purchaser is bound, or with any judgment, decree, order, statute, rule or regulation applicable to Purchaser;

		
	(e)
	Finders' Fees:  Purchaser has not incurred any obligation or liability, contingent or otherwise, for brokers' or finders' fees in respect of the transaction herein contemplated for which Vendor shall have any obligation or liability; 

		
	(f)
	Investment Canada:  Purchaser is not a "non‐Canadian" under the Investment Canada Act; and

26

		
	(g)
	Licensee Liability Rating:  Purchaser is a registrant with the AER, and Purchaser’s Licensee Liability Rating:

		
	(i)
	at the date this Agreement is executed, is greater than or equal to 1.0;

		
	(ii)
	as a result of the consummation of this Transaction, shall continue to be greater than or equal to 1.0; and

		
	(iii)
	at the time the AER considers approval of any Conveyance Documents that require its approval, shall be greater than or equal to 1.0.

		
	6.3
	Survival of Representations and Warranties

Each Party acknowledges that the other may rely on the representations and warranties made by it pursuant to Clauses 6.1 or 6.2,, as applicable. Subject to Paragraph 5.2(b)(iv), and except as otherwise specifically stated, the representations and warranties shall be true on the date of this Agreement and on the Closing Date, and shall continue in full force and effect and shall survive the Closing Date for a period of twelve (12) months thereafter for the benefit of the Party in favour of whom such representations and warranties were made.

		
	6.4
	No Additional Representations or Warranties

Vendor makes no representations or warranties to Purchaser other than those expressly enumerated in Clauses 6.1 and 6.2.  Specifically, Vendor does not warrant title to the Assets or make representations or warranties with respect to:  
		
	(a) 
	the quantity, quality or recoverability of Petroleum Substances respecting the Lands and comprised within the Assets;

		
	(b) 
	any estimates of the value of the Assets or the revenues applicable to future production of Petroleum Substances from the Lands; 

		
	(c) 
	any engineering, geological or other interpretations or economic evaluations respecting the Assets; 

		
	(d) 
	the rates of production of Petroleum Substances from the Lands; and

		
	(e) 
	the quality, condition, marketability or serviceability of the Assets or their suitability of use for any purpose.

Without restricting the generality of the foregoing, Purchaser acknowledges and confirms to Vendor that it has made its own independent investigation, analysis, evaluation and inspection of the Assets and the state and condition thereof, and that Purchaser has relied solely on such investigation, analysis, evaluation and inspection as to its assessment of the condition, quantum and value of the Assets except to the extent a representation and warranty has been made by Vendor that expressly applies with respect thereto.

27

ARTICLE 7     
THIRD PARTY RIGHTS AND CONSENTS
		
	7.1
	Preferential Rights of Purchase

		
	(a)
	If any of the Assets is subject to a Right of First Refusal, or if the disposition herein requires the consent of any third party which can be unreasonably withheld, Vendor shall comply with the terms of the provisions relating to any Right of First Refusal or consent and shall promptly serve all such notices as are required under such provisions, in accordance with the terms and conditions of any such Right of First Refusal and consent.  Unless Purchaser otherwise agrees, each such notice shall include a request for a waiver of any Right of First Refusal to purchase any of the Assets and for the granting of any consent that may be required.  From time to time, at Purchaser’s request, Vendor shall advise Purchaser of the status of any consent or Right of First Refusal.  At Closing, Vendor shall deliver to Purchaser evidence that all such Rights of First Refusal have been complied with and either have been exercised or waived or have expired by the effluxion of time.

		
	(b)
	Within two (2) days after the execution of this Agreement, Purchaser, acting reasonably, shall advise Vendor in writing of Purchaser's bona fide allocation of a portion of the Purchase Price to the Assets which are subject to the Right of First Refusal and except if modified by agreement or an Alberta court of competent jurisdiction by reason of a dispute, such bona fide allocation shall be used for the purposes of this Clause 7.1. Purchaser shall derive such allocation by using good-engineering practices and the value allocated shall have a commercially reasonable basis.

		
	(c)
	If a Right of First Refusal is exercised, Vendor shall comply with such Right of First Refusal, and shall transfer those of the Assets which are subject to the Right of First Refusal to all holders of the Right of First Refusal which exercised their right.

		
	(d)
	If a holder of any Right of First Refusal to purchase any of the Assets exercises such right, that fact shall not be considered a Title Defect and the Assets subject to such Right of First Refusal exercised in accordance with its terms shall cease to be subject to this Agreement and all definitions set forth herein shall be and shall be deemed to be amended accordingly, the Purchase Price and allocation set forth in Clause  2.3 shall be reduced in accordance with the value ascribed to same in Subclause 7.1(b), (or the value modified by agreement or an Alberta court of competent jurisdiction should that be the case), and the Parties shall proceed with Closing for the Assets which remain unaffected by such exercised Rights of First Refusal.

		
	(e)
	If a holder of any Right of First Refusal exercises a Right of First Refusal and is then unable or unwilling to enter in to a conveyance agreement with Vendor to acquire the relevant Assets, Purchaser shall accept a conveyance of such Assets for the amount that would have been payable by the purchaser of such Assets pursuant to Subclause 7.1(b) and under the same terms and conditions as provided in this Agreement, including provision for the appropriate Section 116 Withholding Amount for such Assets, provided that Purchaser shall not be required to accept such a conveyance more than one hundred and eighty (180) days following the 

28

Closing Date. Any conveyance to Purchaser pursuant to this Subclause 7.1(e) shall be subject to the rights of any other Right of First Refusal holders who have also exercised their Right of First Refusal with respect to the same Assets and who, accordingly, have a right to acquire their proportionate share of such Assets.
		
	(f)
	Purchaser shall be liable to Vendor for and shall in addition indemnify and hold Vendor harmless from and against all Losses which arise from any matter or thing occurring or arising, through or attributable to the allocations provided by Purchaser to Vendor for the purposes of this Article 7, whether or not such allocations are reasonable.

ARTICLE 8     
PURCHASER'S REVIEW
		
	8.1
	Title Review 

Vendor shall, subject to the Regulations and all contractual and fiduciary obligations and limits, at Vendor's office during normal business hours, provide Purchaser and its nominees with reasonable access to Vendor's records, files and documents including the Leases and applicable operating agreements, well licences, overriding royalty agreements and production sale contracts, which directly relate to the Assets, for Purchaser's review of the Assets and of Vendor's title thereto.

		
	8.2
	Title Defects

No less than five (5) Business Days prior to the Closing Date, Purchaser may give Vendor written notice of Title Defects, which written notice shall include a description of each Title Defect and the Assets affected thereby; the value allocated by Purchaser, acting reasonably, to each affected Asset; and the amount, in Purchaser's reasonable opinion, by which the value of each affected Asset has been reduced by the Title Defect.  Failure to include a Title Defect in a written notice shall be deemed to be a waiver of such Title Defect for the purposes of this Clause 8.2.

		
	8.3
	Vendor's Rectification

Prior to the Closing Date, Vendor shall use all commercially reasonable efforts to cure or rectify the Title Defects of which Purchaser has given notice pursuant to Clause 8.2.  Insofar as the Title Defects described in Purchaser’s written notice have not been cured, to Purchaser's reasonable satisfaction, not less than two (2) Business Days prior to the Closing Date:

		
	(a)
	where the cumulative value of the affected Assets is less than Five percent (5%) of the Purchase Price, Purchaser shall be obligated to complete the purchase of the Assets without adjustment of the Purchase Price on account of Title Defects; 

		
	(b)
	where the cumulative value of the affected Assets  is Five percent (5%) or more of the Purchase Price, the Purchase Price shall be reduced by such amount and Purchaser shall be obligated to proceed to purchase the Assets at the reduced Purchase Price; or

29

		
	(c)
	where the cumulative value of the affected Assets is Twenty percent (20%) or more of the Purchase Price, either Purchaser or Vendor may terminate this Agreement by providing written notice to the other Party one (1) Business Day prior to the Closing Date, in which case the Parties shall have no further obligation to each other, except for obligations arising pursuant to Article 11.  If neither Party provides such written notice to terminate, the Purchase Price shall be reduced by such amount and Purchaser shall be obligated to proceed to purchase the Assets at the reduced Purchase Price.

		
	8.4
	Value Disputes

If Vendor disagrees with Purchaser's value allocated to an affected Asset or the amount by which the value of each affected Asset has been reduced by each uncured Title Defect according to Purchaser’s allocations in Clause 8.2, the Parties shall forthwith meet in good faith to discuss the issue.  If after such a meeting the issue has not been resolved or if a Party refuses to meet to discuss the issue, the Parties shall refer the issue to a mutually-agreeable independent engineering consulting firm (the "Title Valuation Referee") for determination.  The Parties shall provide all materials relevant to the issue to the Title Valuation Referee within two (2) days of the issue being referred to the Title Valuation Referee.  The Parties shall direct the Title Valuation Referee to provide its decision regarding such issue within five (5) days after its receipt of all relevant materials.  The Title Valuation Referee shall act as an expert for the limited purpose of determining the specific issues submitted and may not award damages or penalties to either Party with respect to any matter.  Vendor and Purchaser shall equally share the Title Valuation Referee’s costs, fees and expenses (including reasonable legal fees).  The Title Valuation Referee’s decision shall be given in writing to the Parties, shall be binding upon and non-appealable by the Parties, and shall not be subject to further review, audit or arbitration.
		
	8.5
	Environmental Review

Vendor shall, subject to the Regulations and all contractual and fiduciary obligations and limits, provide Purchaser and its nominees with a reasonable opportunity to inspect the Assets at Purchaser's sole cost, risk and expense, insofar as Vendor can reasonably provide such access to the Assets.  Purchaser may conduct an environmental assessment of the Assets not operated by Purchaser or an Affiliate thereof.  Purchaser shall pay the costs of the environmental review.  The environmental review shall be completed no later than seven (7) Business Days prior to the Closing Date and shall be undertaken in a manner that does not unduly interfere with operations. Vendor shall provide assistance to Purchaser in gaining access to any Assets not operated by Vendor which Purchaser wishes to review, by making a request to the relevant operator in that regard.

		
	8.6
	Environmental Defects

Purchaser may give Vendor notice of Environmental Defects from time to time as soon as is reasonably practicable after Purchaser's determination thereof.  No later than five (5) Business Days prior to the Closing Date, Purchaser may give Vendor written notice of Environmental Defects, which written notice shall include a description of each Environmental Defect and the Assets affected thereby; the value allocated by Purchaser, acting reasonably, to each affected Asset; and the amount, in Purchaser's reasonable opinion, by which the value of each affected Asset has been reduced by the Environmental Defect.  Failure to include an Environmental Defect in a written notice shall be deemed to be a waiver of such Environmental Defect for the purposes of this Clause 8.6.

30

		
	8.7
	Vendor's Rectification 

Prior to the Closing Date, Vendor shall use all commercially reasonable efforts to cure or rectify the Environmental Defects of which Purchaser gives notice pursuant to Clause 8.6.  Insofar as the Environmental Defects described in Purchaser’s written notice have not been cured to Purchaser's reasonable satisfaction two (2) Business Days prior to the Closing Date:

		
	(a)
	where the cumulative value of the affected Assets is less than Five percent (5%) of the Purchase Price, Purchaser shall be obligated to complete the purchase of the Assets without adjustment of the Purchase Price on account of Title Defects; 

		
	(b)
	where the cumulative value of the affected Assets  is Five percent (5%) or more of the Purchase Price, the Purchase Price shall be reduced by such amount and Purchaser shall be obligated to proceed to purchase the Assets at the reduced Purchase Price; or

		
	(c)
	where the cumulative value of the affected Assets is Twenty percent (20%) or more of the Purchase Price, either Purchaser or Vendor may terminate this Agreement by providing written notice to the other Party one (1) Business Day prior to the Closing Date, in which case the Parties shall have no further obligation to each other, except for obligations arising pursuant to Article 11.  If neither Party provides such written notice to terminate, the Purchase Price shall be reduced by such amount and Purchaser shall be obligated to proceed to purchase the Assets at the reduced Purchase Price.

31

		
	8.8
	Value Disputes

If Vendor disagrees with Purchaser's value allocated to an affected Asset or the amount by which the value of each affected Asset has been reduced by each uncured Environmental Defect according to Purchaser’s allocations in Clause 8.2, the Parties shall forthwith meet in good faith to discuss the issue.  If after such a meeting the issue has not been resolved or if a Party refuses to meet to discuss the issue, the Parties shall refer the issue to a mutually-agreeable independent environmental consulting firm (the "Environmental Valuation Referee") for determination.  The Parties shall provide all materials relevant to the issue to the Environmental Valuation Referee within three (3) Business Days of the issue being referred to the Environmental Valuation Referee.  The Parties shall direct the Environmental Referee to provide its decision regarding such issue within five (5) Business Days after its receipt of all relevant materials.  The Environmental Referee shall act as an expert for the limited purpose of determining the specific issues submitted and may not award damages or penalties to either Party with respect to any matter.  Vendor and Purchaser shall equally share the Environmental Referee’s costs, fees and expenses (including reasonable legal fees).  The determination of the Environmental Referee’s decision shall be given in writing to the Parties, shall be binding upon and non-appealable by the Parties, and shall not be subject to further review, audit or arbitration.  
ARTICLE 9     
ARBITRATION
		
	9.1
	Reference to Arbitration

		
	(a)
	Insofar as the Parties are unable to agree on any matter which expressly may be referred to arbitration hereunder, either Party may serve the other Party written notice that it wishes such matter referred to arbitration.

		
	(b)
	The Parties shall meet within seven (7) days of the receipt of a notice issued pursuant to Subclause 9.1(a), to attempt to agree on a single arbitrator qualified by experience, education and training, to determine such matter.  If the Parties are unable to agree on the selection of the arbitrator, the Party which issued such notice shall forthwith make application to a judge of the Court of Queen's Bench of the Province of Alberta pursuant to the Arbitration Act (Alberta) for the appointment of a single arbitrator, and failing such action on the part of the Party which issued such notice, the other Party may make such application.

		
	9.2
	Proceedings

		
	(a)
	The arbitrator selected pursuant to Clause 9.1 shall proceed as soon as is practicable to hear and determine the matter in dispute.  The Parties shall direct the arbitrator to provide the Parties with a written decision respecting such matter within forty‐five (45) days of the arbitrator’s appointment.  The Parties shall provide such assistance and information as may be reasonably necessary to enable the arbitrator to make its decision.

		
	(b)
	Except to the extent modified by this Article 9, the arbitrator shall conduct any arbitration hereunder pursuant to the provisions of the Arbitration Act (Alberta).

32

		
	9.3
	Compensation

The compensation and expenses of the arbitrator shall be borne equally by the Vendor and the Purchaser.

ARTICLE 10     
CONDITIONS TO CLOSING
		
	10.1
	Required Approvals

It is a condition precedent to Closing that any and all approvals and authorizations required under the Regulations prior to Closing (including any approval required under the Investment Canada Act) be obtained by Closing, other than any approval required for the transfer of a well licence from Vendor to Purchaser.  After Closing, each of the Parties shall use all reasonable efforts to obtain any approvals and authorizations required or advisable thereafter in respect of this Transaction, and in addition shall make, or cause to be made, all regulatory or statutory filings and notifications required of it or its Affiliates following Closing, whether specifically provided for herein or not.  The Parties hereby acknowledge that the consent of buyers under Production Sales Contracts may not be obtainable until after Closing and that such consents shall not be a condition precedent to Closing.

		
	10.2
	Conditions for Purchaser's Benefit

Purchaser’s obligation to complete the purchase hereunder is subject to the following conditions precedent:

		
	(a)
	No Substantial Damage:  there shall have been no damage to or alteration of any of the Assets between the date of this Agreement or the Effective Date, whichever is earlier, and the Closing Time which, in Purchaser's reasonable opinion, would materially and adversely affect the value of the Assets, except as and to the extent approved in writing by Purchaser, and Vendor shall have delivered to Purchaser Vendor’s certificate, substantially in the form of Schedule "K" dated as of the Closing Date, that there has been no such damage to or alteration of any of the Assets during such period, provided that a change in the prices at which Petroleum Substances may be sold shall in no event be regarded as material damage to or an alteration of the Assets;

		
	(b)
	Availability of Documents:  pursuant to Article 8, Vendor shall have provided Purchaser and its nominees with reasonable access to all of Vendor's records and documents pertaining to the Assets, in order for Purchaser and its agents to confirm Vendor's title to the Assets;

		
	(c)
	Vendor's Material Compliance:  Vendor shall have delivered to Purchaser a certificate in the form of Schedule "K", dated as of the Closing Date, stating that in all material respects, Vendor has performed or complied with each of the terms, covenants and conditions of this Agreement to be performed or complied with by Vendor at or prior to the Closing;

33

		
	(d)
	Representations Correct:  Vendor shall have delivered to Purchaser its certificate in the form of Schedule "K", dated as of the Closing Date, stating that each of the representations and warranties contained in Clause 6.1, as of the date of this Agreement was, and on the Closing Date is, true and correct in all material respects;

		
	(e)
	Delivery of Conveyance Documents:  Vendor shall have delivered to Purchaser those documents and materials described in Subclause 3.3(a); 

		
	(f)
	Rights of First Refusal:  At least two (2) Business Days prior to the Closing Date, all Rights of First Refusal shall have been determined by both Parties to be inapplicable, waived or exercised, or shall have expired by the effluxion of time; and

		
	(g)
	Delivery of Section 116 Escrow Agreement:  Vendor shall have delivered to Purchaser at least one (1) copy of the Section 116 Escrow Agreement referred to in Clause 2.6 hereof, in a form and substance agreed to by the Parties prior to Closing.

		
	10.3
	Conditions for Vendor's Benefit

Vendor’s obligation to complete the sale hereunder is subject to the following conditions precedent:

		
	(a)
	Payment of Purchase Price:  Purchaser shall have tendered to Vendor the Purchase Price and applicable GST in the manner provided for in Clause 2.3, subject to any adjustments provided for in Article 4, and interest in lieu provided for in Clause 2.5;

		
	(b)
	Purchaser's Material Compliance:  Purchaser shall have delivered to Vendor Purchaser’s certificate, in the form of Schedule "K" dated as of the Closing Date, to the effect that in all material respects, Purchaser shall have performed or complied with each of the terms, covenants and conditions of this Agreement to be performed or complied with by Purchaser at or prior to the Closing Time;

		
	(c)
	Representations Correct:  Purchaser shall have delivered to Vendor Purchaser’s certificate, in the form of Schedule "K", dated as of the Closing Date, stating that each of the representations and warranties contained in Clause 6.2 was, as of the date of this Agreement and is, as of the Closing Date, true and correct in all material respects; 

		
	(d)
	Delivery of Conveyance Documents:  Purchaser shall have delivered to Vendor at least one (1) copy of the documents described in Subclause 3.3(b); 

		
	(e)
	Delivery of Section 116 Escrow Agreement:  Purchaser shall have delivered to Vendor at least one (1) copy of the Section 116 Escrow Agreement referred to in Clause 2.6 hereof, in a form and substance agreed to by the Parties prior to Closing; and

34

		
	(f)
	Rights of First Refusal:  At least two (2) Business Days prior to the Closing Date, all Rights of First Refusal shall have been determined by both Parties to be inapplicable, waived or exercised, or shall have expired by the effluxion of time.

		
	10.4
	Waiver of Conditions

The conditions in Clauses 10.2 and 10.3 are for the sole benefit of Purchaser or Vendor respectively.  Except for the conditions set forth in Subclauses 10.2(f) and 10.3(e), the Party for the benefit of which such conditions have been included may waive any of them, in whole or in part, and such waiver shall be accomplished by written notice to the other Party, and shall be without prejudice to any of the rights of the Party waiving such condition including reliance on or enforcement of the representations, warranties or covenants which are preserved and pertain to conditions similar to the condition so waived.  Neither Purchaser nor Vendor shall be entitled to waive the existence and operation of any Right of First Refusal and the conditions set forth in Subclauses 10.2(f) and 10.3(e).

		
	10.5
	Failure to Satisfy Conditions

If any condition in Clause 10.2 or 10.3 has not been satisfied at or before the Closing Date and such condition has not been waived by the Party for the benefit of which such condition has been included, to the extent it is entitled to do so, such Party may terminate this Agreement by written notice to the other Party.  However, a Party may not terminate this Agreement in such manner after Closing, and after Closing the remedies otherwise available to it with respect to the failure to satisfy such condition, if any, shall be limited to damages.

		
	10.6
	Parties' Diligence

Each Party shall proceed diligently, honestly and in good faith and use all reasonable efforts with respect to all matters within its control to satisfy the conditions referred to in Clauses 10.1, 10.2 and 10.3.

35

ARTICLE 11     
CONFIDENTIALITY
		
	11.1
	Confidentiality

		
	(a)
	Information respecting the Assets shall be retained in confidence and used only for the purposes of the transaction herein contemplated, provided that, upon Closing, Purchaser's rights to use or disclose such information shall be subject only to any operating, unit or other agreements that apply to the transaction herein contemplated.  Any additional information obtained as a result of access to Vendor’s records which does not relate to the Assets shall continue to be treated as confidential and shall not be used by Purchaser without Vendor’s prior written consent.  However, the restrictions on disclosure and use of information in this Agreement shall not apply to information to the extent to which it:

		
	(i)
	is or becomes publicly available through no act or omission of Purchaser or its consultants or advisors;

		
	(ii)
	is lawfully obtained from a third party; or

		
	(iii)
	is already in Purchaser's possession at the time of disclosure, without restriction on disclosure;

provided, however, that specific items of information shall not be considered to be in the public domain merely because more general information respecting the Assets is in the public domain.

		
	(b)
	Neither Party will make any press release or other public announcement respecting this Transaction without the written consent of the other Party, such consent not to be unreasonably withheld. Anything in this paragraph to the contrary notwithstanding, a Party may make any required press release or other public announcement necessary to comply with any Regulations or the rules of any listing authority or stock exchange with which the disclosing Party is bound to comply.

		
	11.2
	Consultants and Advisors Bound

If Purchaser employs consultants, advisors or agents to assist in its review of the Assets pursuant to Article 8, Purchaser shall be responsible to Vendor for ensuring that such consultants, advisors and agents comply with the restrictions on the use and disclosure of information set forth in Clause 11.1.

ARTICLE 12     
LIABILITY AND INDEMNIFICATION
		
	12.1
	Indemnities

(a)    Subject to Clauses 12.2 and 12.4, Vendor shall:

		
	(i)
	be liable to Purchaser and its Representatives for; and

36

		
	(ii)
	indemnify, save and hold harmless Purchaser and its Representatives from and against;

all Losses caused by Vendor’s breach of this Agreement including any breach of a representation or warranty contained herein, except to the extent that any such Loss is reimbursed by Purchaser’s insurance, is caused by the gross negligence or wilful misconduct of Purchaser or Representatives, or to the extent to which Purchaser did not rely on such representation or warranty.

(b)    Subject to Clause 12.4, Purchaser shall:

		
	(i)
	be liable to Vendor and its Representatives for; and

		
	(ii)
	indemnify, save and hold harmless Vendor and its Representatives from and against;

all Losses caused by Purchaser’s breach of this Agreement including any breach of a representation or warranty contained herein, except to the extent that any such Loss is reimbursed by Vendor’s insurance, is caused by the gross negligence or wilful misconduct of Vendor or its Representatives, or to the extent to which Vendor did not rely on such representation or warranty.

		
	12.2
	Purchaser’s General Indemnity

Purchaser agrees that, notwithstanding Clause 12.1, it shall:

		
	(a)
	be liable to Vendor and its Representatives for; and

		
	(b)
	indemnify, save and hold harmless Vendor and its Representatives from and against;

all Losses pertaining to the Assets or operations on or in respect of the Assets that occur or accrue on or after the Effective Date except to the extent that any such Losses are reimbursed by Vendor’s insurance or are caused by the gross negligence or wilful misconduct of Vendor or its Representatives.

		
	12.3
	Environmental Indemnity

Notwithstanding Clause 12.1, Purchaser shall:

		
	(a)
	be liable to Vendor and its Representatives for; and

		
	(b)
	indemnify, save and hold harmless Vendor and its Representatives from and against;

all Losses directly or indirectly resulting from any matter or thing pertaining to any Environmental Liabilities however, whenever and by whomever caused, and Purchaser shall assume, perform, pay and discharge all Environmental Liabilities.  Subject to Clause 12.1(a) and Vendor’s representation and warranty set forth in Subclause 6.1(r), Purchaser hereby releases Vendor from any claims and waives any rights or remedies that Purchaser may now or in the future have against Vendor with respect to Environmental Liabilities, whether such claims, rights and remedies are pursuant to common law, statute or otherwise, including the right to name Vendor as a third party to any action commenced against Purchaser in respect thereof.

37

		
	12.4
	Limitation of Claims

		
	(a)
	In the absence of fraud, no claim in respect of Clause 6.1, Clause 6.2, or this Article 12 shall be made or be enforceable, whether by legal proceedings or otherwise, unless notice describing such claim in reasonable detail is given by the claimant to the applicable Party within twelve (12) months of the Closing Date.

		
	(b)
	Notwithstanding anything contained herein, the total liabilities in this Agreement of Vendor, including any claims relating to its representations and warranties in Clauses 6.1, or 6.2, shall not, under any circumstances exceed a sum equivalent to the Purchase Price.

		
	(c)
	Except as specifically and expressly provided in this Agreement, nothing contained in this Agreement shall impose any liability on a Party for indirect or consequential damages, including, but not limited to, business loss, loss of profits or economic losses which are or may be suffered by a Party or its successors and assigns, or any punitive damages.

		
	(d)
	Except as specifically and expressly provided in this Agreement, nothing contained in this Article 12 shall impose any liability on any Party for the income tax liabilities of another Party.

		
	(e)
	The adjustments to the Purchase Price pursuant to Clause 4.1 and any payments made in respect thereto shall not be considered Losses or liabilities of a Party and shall not be limited by this Clause 12.4.

		
	12.5
	Notice of Claims

If, after the Closing Time, a claim is asserted in circumstances which do or may give rise to an indemnity under this Article 12, the Party against whom the claim is asserted shall forthwith give notice thereof to the Party required to indemnify, and the Parties shall consult and cooperate in respect thereof and in determining whether the claim and any legal proceedings relating thereto should be resisted, compromised or settled.  Each Party shall make available to the other all information in its possession or to which it has access which is or may be relevant to the particular claim.  Purchaser shall provide Vendor with access to the Lands to which the claim relates to the extent reasonably necessary in connection with the claim.  No such claim shall be settled or compromised without the written consent of the Party required to indemnify hereunder, which consent shall not be unreasonably withheld.  If any such claim relates exclusively to a period prior to or after the Closing Time, as the case may be, Vendor or Purchaser respectively shall have exclusive conduct of the claim and all legal proceedings relating thereto.

ARTICLE 13     
TERMINATION
		
	13.1
	Termination

This Agreement may be terminated in the following instances:

38

		
	(a)
	as set forth in Subclause 8.3(c) or 8.7(c);

		
	(b)
	by Vendor if any of the conditions set forth in Clause 10.3 are not satisfied in all material respects or waived on or before the Closing Time by Vendor (where entitled to do so);

		
	(c)
	by Purchaser if any of the conditions set forth in Clause 10.2 are not satisfied in all material respects or waived on or before the Closing Time by Purchaser (where entitled to do so); or

		
	(d)
	at any time by the mutual written agreement of Purchaser and Vendor.

		
	13.2
	Liabilities upon Termination

If Vendor terminates this Agreement in accordance with Subclause 13.1(b), Vendor shall have no liability hereunder of any nature whatsoever to Purchaser.  If Purchaser terminates this Agreement in accordance with Subclause 13.1(c), Purchaser shall have no liability hereunder of any nature whatsoever to Vendor.  

ARTICLE 14    
NOTICE

		
	14.1
	Service of Notices

Notwithstanding anything to the contrary contained herein, all notices required or permitted hereunder shall be in writing and shall be delivered as follows:

		
	(a)
	personally, by delivering the notice to the Party at that Party's address for service during normal business hours on a Business Day in which case the notice shall be deemed to have been given to and received by that Party when delivered.  If a notice is not delivered on such a day or is delivered after the addressee's normal business hours, such notice shall be deemed to have been received by such Party at the commencement of that Party’s next ensuing Business Day following the time of the delivery;

		
	(b)
	by facsimile transmission to a Party to such Party's fax number for notices hereunder, in which case the notice shall be deemed to have been received by that Party when transmitted, provided that if the notice is not transmitted on a Business Day or is transmitted after normal business hours on a Business Day, it will be deemed to have been received on the next ensuing Business Day; or

		
	(c)
	except in the event of an actual or threatened postal strike or other labour disruption that may affect mail service, by registered mail to a Party at the address of such Party set out below, in which case the item so mailed shall be deemed to have been received by that Party on the fifth (5th) Business Day following the date of the mailing thereof.

39

		
	14.2
	Addresses for Notices

The address for service of notices hereunder of each of the Parties shall be as follows:
Vendor:        Barnwell of Canada, Limited
Suite 2410, 500 – 4th Avenue SW
Calgary, Alberta  T2P 2V6
Attention: Land
Fax: (403) 266-4124

Purchaser:    Canadian Natural Resources Limited    
2100, 855 – 2 Street SW
Calgary, Alberta  T2P 4J8
Attention:  Manager, Legal Counsel, Acquisitions and Divestments  
Fax: (403) 517-7369

		
	14.3
	Right to Change Address

A Party may change its address for service by notice to the other Party, and such changed address for service shall thereafter be effective for all purposes of this Agreement.

ARTICLE 15     
MISCELLANEOUS PROVISIONS
		
	15.1
	Further Assurances

At or before Closing, and thereafter as may be necessary and without further consideration, the Parties shall execute, acknowledge and deliver such instruments and take such other actions as may be reasonably necessary to fulfil their respective obligations under this Agreement.  Vendor shall cooperate with Purchaser as reasonably required to secure execution of the Conveyance Documents by third parties.

		
	15.2
	Subordination of Ancillary Documents

Except for the Section 116 Escrow Agreement and any power of attorney, agency or trust documents authorizing and empowering Barnwell of Canada, Limited  as agent and attorney to transfer and convey any Assets or portion thereof, all documents executed by the Parties and delivered pursuant to the provisions of this Agreement are subordinate to the provisions of this Agreement and in the event of conflict between this Agreement and those documents, the provisions hereof shall govern and prevail.

		
	15.3
	Governing Law

In all respects, this Agreement shall be subject to and be interpreted, construed and enforced in accordance with the laws in effect in the Province of Alberta.  Each Party accepts the exclusive jurisdiction of the courts of the Province of Alberta and all courts of appeal therefrom.

		
	15.4
	Time

Time shall be of the essence in this Agreement.

40

		
	15.5
	Public Disclosure

Except as may be required by applicable laws or Regulations of any governmental agency or stock exchange and providing at least two (2) Business Days’ advance written notice to the other Party, neither Purchaser nor Vendor shall, prior to or in connection with Closing, issue any press release or other public disclosure concerning this Agreement or the transaction herein contemplated without the other Party's prior written consent, which consent shall not be unreasonably withheld.

		
	15.6
	Assignments

Neither Party may assign this Agreement or any part hereof without the other Party's prior written consent, which consent may be unreasonably and arbitrarily withheld.

		
	15.7
	Waiver in Writing

No waiver of any breach (whether actual or anticipated) of any of the terms, conditions, representations or warranties contained herein shall take effect or be binding upon the waiving Party unless the waiver is expressed in writing under the authority of that waiving Party.  Any waiver so given shall extend only to the particular breach so waived and shall not limit or affect any rights with respect to any other or future breach.

		
	15.8
	No Merger

The covenants, representations, warranties and indemnities contained in this Agreement shall survive Closing as provided for herein and shall not merge in any assignments, conveyances, transfers or other documents executed and delivered at or after Closing, notwithstanding any rule of law, equity or statute to the contrary and all such rules are hereby waived.

		
	15.9
	Prior Agreements and Amendments

This Agreement supersedes and replaces any and all prior agreements between the Parties relating to the sale and purchase of the Assets and may be amended only by written instrument signed by the Parties.

		
	15.10
	Entire Agreement

This instrument states the entire Agreement between the Parties.

		
	15.11
	Enurement

This Agreement shall be binding upon and shall enure to the benefit of the Parties and their respective trustees, receivers, receiver‐managers, successors and permitted assigns.

		
	15.12
	Substitution and Subrogation

To the extent possible, Vendor shall convey the Assets to Purchaser with full right of substitution and subrogation of Purchaser in and to all covenants, representations and warranties by others heretofore given or made in respect of the Assets or any part thereof.

41

		
	15.13
	Remedies Cumulative

No reference to or exercise of any specific right or remedy hereunder by a Party shall prejudice or preclude such Party from exercising or invoking any other remedy in respect of the matter giving rise to such rights or remedies, whether allowed at law or in equity or expressly provided for herein.  No such remedy shall be exclusive of or dependent upon any other such remedy but each Party may exercise any one or more of such remedies independently or in combination.

		
	15.14
	Counterpart Execution

This Agreement may be executed in separate counterparts and delivered by facsimile and each counterpart when so executed and delivered will be deemed to be an original, all of which when taken together will constitute one and the same instrument.  Production of an originally-executed or facsimile copy of each counterpart execution page will be sufficient to prove the execution and delivery of this Agreement.  Any Party delivering this Agreement by facsimile undertakes to deliver, within a reasonable time, an executed original.

IN WITNESS WHEREOF the Parties have duly executed this Agreement.

CANADIAN NATURAL RESOURCES LIMITED  

Per: /s/ Betty Yee        
     Betty Yee,
Vice President, Land

BARNWELL OF CANADA, LIMITED,
in its personal capacity and in its capacity as agent and attorney

Per: /s/ Lloyd Arnason__________________________
Lloyd Arnason, P. Eng.
           President & Chief Operating Officer

This is the execution page to a Purchase and Sale Agreement made August 10, 2015 between 
Barnwell of Canada, Limited, as Vendor, and Canadian Natural Resources Limited, as Purchaser

42

This is Schedule "A" to an Purchase and Sale Agreement made August 10, 2015
between Barnwell of Canada, Limited, as Vendor, and Canadian Natural Resources Limited, as Purchaser

    
PETROLEUM AND NATURAL GAS RIGHTS

Dunvegan Area, Alberta

	
				
	LEASES
	LANDS
	VENDOR’S
INTEREST
	ENCUMBRANCES

	Ptn. Alberta Crown PNG Lease 
17569-A

(M00842)
	Twp. 80, Rge. 3 W6M:
Secs 1, 2, 11, 12 & 13
PNG Surface to Base Debolt Excluding PNG in Bluesky-Bullhead, NG in Upper, Middle and Lower Debolt 
	11.875% WI
	Alberta Crown Lessor Royalty

3% Non-Convertible GORR payable to CNRL on 100% production paid by  Vendor 11.875%

	Ptn. Alberta Crown PNG Lease 
17569-A

(M00842)
	Non-unitized gas produced from 
100/9-1-80-3 W6/00 well only

	11.875% WI
	Alberta Crown Lessor Royalty

3% Non-Convertible GORR payable to CNRL on 100% production paid by Vendor 11.875%
GORR payable to Dunvegan Gas Unit #1 Participants on 100% production paid by 
Vendor 11.875% 

	Ptn. Alberta Crown PNG Lease 
17569-A

(M00842)
	Twp. 80, Rge. 3 W6M:
Secs 2, 11, 12, 13
PNG in Bluesky-Bullhead

Twp. 80 Rge.3 W6M:
Sec 1
PNG in Bluesky-Bullhead
Excluding non-unitized gas produced from 
100/9-1-80-3 W6/00 well only
	11.875% WI
	Alberta Crown Lessor Royalty

3% Non-Convertible GORR payable to CNRL on 100% production paid by  Vendor 11.875% 

	Ptn. Alberta Crown PNG Lease 
17569-A

(M00842)
	Twp. 80, Rge. 3 W6M:
Secs 1, 2, 11, 12, 13 
(Unitized Zones)
NG in Debolt

	13.53471% WI
	Alberta Crown Lessor Royalty

3% Non-Convertible GORR payable to CNRL on 100% production paid by  Vendor 11.875%

	Ptn. Alberta Crown PNG Lease 
1395-A

(M00846)
	Twp. 80, Rge. 3 W6M:
S & NE 4
Twp. 80 Rge. 4 W6M
Secs 13, 14, 28, 32, 33
NG in Bluesky-Bullhead, Lower Debolt 

Twp. 80, Rge. 3 W6M:
Sec 3
NG in Bluesky-Bullhead 
	14.2500% WI
	Alberta Crown Lessor Royalty

43

	
				
	LEASES
	LANDS
	VENDOR’S
INTEREST
	ENCUMBRANCES

	Ptn. Alberta Crown PNG Lease 
1395-A

(M00846)
	Twp. 80, Rge. 3 W6M:
S, NE & Ptn NW 4 
NG in Upper Debolt, Middle Debolt
(Unitized Zones)

Twp. 80 Rge. 4 W6M:
Secs 13, 14, 28, 32, 33 
NG in Upper Debolt, Middle Debolt
(Unitized Zones)

Twp. 80, Rge. 3 W6M:
Sec 3 
NG in Upper Debolt, Middle Debolt
(Unitized Zones)
	13.53471% WI
	Alberta Crown Lessor Royalty

	Ptn. Alberta Crown PNG Lease 
1395-A

(M00846)
	Twp. 80, Rge. 3 W6M:
Secs S, NE & Ptn NW 4 
Depth 690-742M only
NG in Bluesky-Bullhead 
	13.968% WI

	Alberta Crown Lessor Royalty

5% Non-Convertible GORR payable to CNRL on 100% production paid by  Vendor 13.968%

	Ptn. Alberta Crown PNG Lease 
1395-A

Ptn. Alberta Crown PNG Lease 
1395-A

(M00846)
	Twp. 80, Rge. 3 W6M:
S, NE & Ptn NW 4 
NG in Bluesky-Bullhead
Excluding Depth 690-742M

Twp. 80, Rge. 3 W6M:
S, NW & Ptn NE 5;
NG in Bluesky-Bullhead, Debolt

	14.2500% WI

	Alberta Crown Lessor Royalty

	Ptn. Freehold 
PNG Lease 
Lessor Eddy, E & K

(M00844)
	Twp. 80 Rge. 3 W6M:
Ptn 4, Ptn 8, Ptn 9
PNG Surface to Basement Excluding NG in Bluesky-Bullhead, Upper Debolt, Middle Debolt

Twp. 80 Rge. 3 W6M:
Ptn 5
PNG Surface to Basement
	11.875% WI

	Freehold Lessor Royalty 17.5%

	Ptn. Freehold 
PNG Lease 
Lessor Eddy, E & K

(M00844)
	Twp. 80 Rge. 3 W6M:
Ptn 4, Ptn SE 8, Ptn SW 9 (Unitized Zones)
NG in Upper Debolt, Middle Debolt 
	13.53471% WI

	Freehold Lessor Royalty 17.5%

	Ptn. Freehold 
PNG Lease 
Lessor Eddy, E & K

(M00844)
	Twp. 80 Rge. 3 W6M:
Ptn NW 4 
(Depth 690-742M)
NG in Bluesky-Bullhead
	13.968% WI

	Freehold Lessor Royalty 17.5%

5% Non-Convertible GORR payable to CNRL on 100% production paid by  Vendor 13.968%

	LEASES
	LANDS
	VENDOR’S
INTEREST
	ENCUMBRANCES

44

	
				
	Ptn. Alberta Crown PNG Lease 
17570

(M00827)
	Twp. 80 Rge. 3 W6M:
N & SE 7
PNG from Surface to Base Debolt
Excluding NG in Upper Debolt, Middle Debolt

Twp. 80 Rge. 3 W6M:
Sec 18
PNG Surface to Base Debolt Excluding NG in Paddy-Cadotte, Upper Debolt, Middle Debolt

Twp. 80 Rge. 3 W6M:
Sec 16
PNG Surface to Base Debolt Excluding NG in Bluesky-Bullhead, NG in Debolt

Twp. 80 Rge. 3 W6M:
Sec 17
PNG from Surface to Base Debolt 
Excluding in Debolt
	11.875% WI

	Alberta Crown Lessor Royalty

3% Non-Convertible GORR payable to CNRL on 100% production paid by  Vendor 11.875%

	Ptn. Alberta Crown PNG Lease 
17570

(M00827)
	Twp. 80 Rge. 3 W6M:
N & SE 7, Sec 18 
NG in Upper Debolt, Middle Debolt
 (Unitized Zones)

Twp. 80 Rge. 3 W6M:
Sec 16 
NG in Bluesky-Bullhead, NG in Debolt
(Unitized Zones)

Twp. 80 Rge. 3 W6M:
Sec 17 
NG in Debolt
(Unitized Zones)
	13.53471% WI

	Alberta Crown Lessor Royalty

3% Non-Convertible GORR payable to CNRL on 100% production paid by  Vendor 11.875%

	Ptn. Alberta Crown PNG Lease 
17570

(M00827)
	Non-unitized gas production between 449.5M to 466M and 466M to 500MKB only
from 100/08-18-80-3W6/02 well
	13.13904% WI BPPO

Barnwell 11.875% WI APPO

	Alberta Crown Lessor Royalty

5% Non-Convertible GORR payable to CNRL on 100% production paid by Vendor 13.13904%
3% Non-Convertible GORR payable to CNRL on 100% production paid by 
Vendor 13.13904%

45

	
				
	LEASES
	LANDS
	VENDOR’S
INTEREST
	ENCUMBRANCES

	Pt. Alberta Crown PNG Lease 
1395

(M00845)
	Twp. 80 Rge. 3 W6M:
SW, N & Ptn SE 8, Ptn SW 9
NG in Bluesky-Bullhead, Lower Debolt

Twp. 80 Rge. 3 W6M:
SE & N 9, Secs 15, 19 & 30
NG in Bluesky-Bullhead

Twp. 80 Rge. 4 W6M:
Sec 35
NG in Lower Debolt

Twp. 80 Rge. 4 W6M:
Sec 24 
NG in Bluesky-Bullhead, Debolt
Excluding non-unitized gas between 444.95M to 466M and 466M to 500MKB only from 100/10-24-80-3W6/02 well

Twp. 80 Rge. 4 W6M: 
Sec 10
NG in Bluesky-Bullhead 
	23.75% WI

	Alberta Crown Lessor Royalty

	Ptn. Alberta Crown PNG Lease 1395

(M00845)
	Twp. 80 Rge. 3 W6M:
SW, N & Ptn SE 8, Ptn SW 9 
(Unitized Zones)
NG in Upper Debolt, Middle Debolt
 
Twp. 80 Rge. 3 W6M:
SE & N 9, Secs 10, 15, 19, 30
(Unitized Zones)
NG in Debolt

Twp. 80 Rge. 4 W6M:
Sec  24
 NG in Debolt 
(Unitized Zones)

Twp. 80 Rge. 3 W6M:
Secs 20, 21, 22, 23 & 31 
 (Unitized Zones)
NG in Bluesky-Bullhead, Debolt

Twp. 80 Rge. 4 W6M:
S & NE 25, Sec 35 
 (Unitized Zones)
NG in Bluesky-Bullhead, Upper Debolt, Middle Debolt
	13.53471% WI

	Alberta Crown Lessor Royalty

46

	
				
	LEASES
	LANDS
	VENDOR’S
INTEREST
	ENCUMBRANCES

	Ptn. Alberta Crown PNG Lease 
17569

(M00826)
	Twp. 80 Rge. 3 W6M:
Sec 14
PNG Surface to Base Debolt Excluding NG in Debolt 
	17.8125% WI
	Alberta Crown Lessor Royalty

3.75% Non-Convertible GORR 
payable on 18.75% production to CNRL 18.374%, Prairie Birch 69.376% and Signalta 12.25% paid by Vendor 95%

3% Non-Convertible GORR payable to CNRL on 100% production paid by  Vendor 17.8125%

	Ptn. Alberta Crown PNG Lease 
17569

(M00826)
	Twp. 80 Rge. 3 W6M:
Sec 14 
(Unitized Zones)
NG in Debolt

	13.53471% WI
	Alberta Crown Lessor Royalty

3.75% Non-Convertible GORR payable on 18.75% production to CNRL 18.374%, Prairie Birch 69.376% and Signalta 12.25% paid by  Vendor 95%
3% Non-Convertible GORR payable to CNRL on 100% production paid by  Vendor 17.8125%

	Ptn. Alberta Crown PNG Lease 
17571-A

(M00843)
	Twp. 80 Rge. 3 W6M:
Sec 27
PNG from Surface to Base Debolt 
Excluding NG in Bluesky-Bullhead, Debolt
	11.875% WI
	Alberta Crown Lessor Royalty

3% Non-Convertible GORR payable to CNRL on 100% production paid by  Vendor 11.875%

	Pt. Alberta Crown PNG Lease 
17571-A

(M00843)
	Twp. 80 Rge. 3 W6M:
Sec 27 
(Unitized Zones)
NG in Bluesky-Bullhead, Debolt

	13.53471% WI
	Alberta Crown Lessor Royalty

3% Non-Convertible GORR payable to CNRL on 100% production paid by  Vendor 11.875%

	Pt. Alberta Crown PNG Lease 
17571

(M00828)

	Twp. 80 Rge. 3 W6M:
Sec  28 
PNG Surface to Base Debolt Excluding NG in Bluesky-Bullhead, PET in Debolt C, NG in Debolt
And Excluding prod. from 100/01-28-80-3 W6M well

Twp. 80 Rge. 3 W6M:
Sec 32
PNG Surface to Base Debolt  Excluding NG in Cadotte, Bluesky-Bullhead, PET in Debolt C, NG in Debolt

Twp. 80 Rge. 3 W6M:
Sec 33
PNG Surface to Base Debolt Excluding NG in Bluesky-Bullhead
	11.875% WI
	Alberta Crown Lessor Royalty

3% Non-Convertible GORR payable to CNRL on 100% production paid by  Vendor 11.875%

47

	
				
	LEASES
	LANDS
	VENDOR’S
INTEREST
	ENCUMBRANCES

	Pt. Alberta Crown PNG Lease 
17571

(M00828)
	Twp. 80 Rge. 3 W6M
Sec 28 
(Unitized Zones) 
(Debolt 4444’ to 5294’)
NG in Bluesky Bullhead, Debolt

Twp. 80 Rge. 3 W6M
Sec 32 
(Unitized Zones) 
(Debolt 4444’ to 5294’)
NG in Cadotte, Bluesky-Bullhead, Debolt

Twp. 80 Rge. 3 W6M:
Sec 33 
(Unitized Zones) 
(2754’ to 3043’ Bluesky-Bullhead)
NG in Bluesky-Bullhead
	13.53471% WI
	Alberta Crown Lessor Royalty

3% Non-Convertible GORR payable to CNRL on 100% production paid by  Vendor 11.875%

	Pt. Alberta Crown PNG Lease 
17571

(M00828)
	Twp. 80 Rge. 3 W6M:
Secs 28 & 32
PET in Debolt C

	15.6514% WI
	Alberta Crown Lessor Royalty

3% Non-Convertible GORR payable to CNRL on 100% production paid by  Vendor 11.875%

	Pt. AlbertaCrown PNG Lease 
17571

(M00828)

	Twp. 80 Rge. 3 W6M:
Sec 29
PNG surface to Base Debolt Excluding NG in Paddy, Cadotte, Bluesky-Bullhead, Montney, PET  from Top Debolt to Base Debolt C, NG in Debolt

	17.8125% WI
	Alberta Crown Lessor Royalty

3% Non-Convertible GORR payable to CNRL on 100% production paid by  Vendor 17.8125%  
3.75% Non-Convertible GORR payable on 18.75% production to CNRL 25% and Prairie Birch 75% paid by  Vendor 95%

	Pt. Alberta Crown PNG Lease 
17571

(M00828)

	Twp. 80 Rge. 3 W6M:
Sec 29 
(Unitized Zones)
NG in Paddy, Cadotte, Bluesky-Bullhead, Debolt
	13.53471% WI
	Alberta Crown Lessor Royalty

3% Non-Convertible GORR payable to CNRL on 100% production paid by  Vendor 17.8125%

3.75% Non-Convertible GORR payable on 18.75% production to CNRL 12.75%, Prairie Birch 75%
and Signalta 12.25% paid by  Vendor 95%

	Pt. Alberta Crown PNG Lease 
17571

(M00828)
	NG production from Montney from 15-29-80-3 W6 well

	17.8125% WI
	Alberta Crown Lessor Royalty

3% Non-Convertible GORR payable to CNRL on 100% production paid by  Vendor 17.8125%

3.75% Non-Convertible GORR payable on 18.75% production to CNRL 25% and Prairie Birch 75% paid by  Vendor 95%

5% Non-Convertible GORR
Payable to CNRL on 100% production paid by  Vendor 17.8125%

48

	
				
	LEASES
	LANDS
	VENDOR’S
INTEREST
	ENCUMBRANCES

	Pt. Alberta Crown PNG Lease 
17571

(M00828)
	Twp. 80 Rge. 3 W6M:
Sec 29
PET in Debolt Excluding Pet in Debolt C
	15.6514% WI
	Alberta Crown Lessor Royalty

3% Non-Convertible GORR payable to CNRL on 100% production paid by Vendor 15.6514%
3.75% Non-Convertible GORR payable on 18.75% production to CNRL 25% and Prairie Birch 75% paid by  Vendor 95%

	Pt. Alberta Crown PNG Lease 
17571

(M00828)
	Twp. 80 Rge. 3 W6M:
Sec 34
PNG Surface to Base Bluesky-Bullhead Excluding NG in Bluesky-Bullhead
	23.75% WI
	Alberta Crown Lessor Royalty

3% Non-Convertible GORR payable to CNRL on 100% production paid by  Vendor 23.75%
Non-Convertible GORR 15% Gas 1/150 (5-15%) Oil payable on 100% production to CNRL 18.375%, Prairie Birch 69.375%, Signalta 12.25% paid by  Vendor 23.75%

	Pt. Alberta Crown PNG Lease 
17571

(M00828)
	Twp. 80 Rge. 3 W6M:
Sec 34 
(Unitized Zone)
NG in Bluesky-Bullhead

	13.53471% WI
	Alberta Crown Lessor Royalty

3% Non-Convertible GORR payable to CNRL on 100% production paid by  Vendor 23.75% 

Non-Convertible GORR 15% Gas 1/150 (5-15%) Oil payable on 100% production to CNRL 18.375%, Prairie Birch 69.375% and Signalta 12.25% paid by Vendor 23.75%

	Pt. Alberta Crown PNG Lease 
30646

(M00824)
	Twp. 80 Rge. 3 W6M:
N 30
PNG Surface to Base Peace River Excluding NG in Paddy

	23.75% WI
	Alberta Crown Lessor Royalty

	Pt. Alberta Crown PNG Lease 
30646

(M00824)
	Twp. 80 Rge. 3 W6M:
N 30 
NG in Paddy 
(Unitized Zone)

	13.53471% WI
	Alberta Crown Lessor Royalty

	Pt. Alberta Crown PNG Lease 0594100283

(M00858)
	Twp. 80 Rge. 3 W6M:
Sec 31
PNG Base Peace River to Base Triassic 
Excluding NG in Worsley, Bluesky-Bullhead
	13.53471% WI
	Alberta Crown Lessor Royalty

	Pt. Alberta Crown PNG Lease 0594100283

(M00858)
	Twp. 80 Rge. 3 W6M
Sec 31
(100/11-31-080-03W6/04 Wellbore)
NG in Worsley
	13.53471% WI
	Alberta Crown Lessor Royalty

5% Non-Convertible GORR payable to CNRL on 100% production paid by  Vendor 13.53471%

49

	
				
	LEASES
	LANDS
	VENDOR’S
INTEREST
	ENCUMBRANCES

	Pt. Alberta Crown PNG Lease 
7630

(M00825)
	Twp. 80 Rge. 4 W6M:
NW 25
PNG in Bluesky-Bullhead, Debolt 
Excluding NG in Bluesky-Bullhead, Middle Debolt, Lower Debolt
	17.8125% WI
	Alberta Crown Lessor Royalty

	Pt. Alberta Crown PNG Lease 
7630

(M00825)
	Twp. 80 Rge. 4 W6M
NW 25
NG in Bluesky-Bullhead, Middle Debolt, Lower Debolt 
(Unitized Zones)
	13.53471% WI
	Alberta Crown Lessor Royalty

	Pt. Alberta Crown PNG Lease
32628

(M00830)

	Twp. 81 Rge. 3 W6M:
Sec 6
PNG Surface to Base Peace River

Twp. 81 Rge. 4 W6M:
Secs 2, 11 & 12
PNG Surface to Base Peace River 
Excluding NG in Paddy
	20.78125% WI
	Alberta Crown Lessor Royalty

10% Non-Convertible GORR payable to Wyalta Resources Ltd. on 50% production paid by  Vendor 20.78125%

	Pt. Alberta Crown PNG Lease 
32628

(M00830)
	Twp. 81 Rge. 4 W6M:
Secs 2 & 12
(Unitized Zone)
NG in Paddy
	13.53471% WI
	Alberta Crown Lessor Royalty

10% Non-Convertible GORR payable to Wyalta Resources Ltd. on 50% production paid by Vendor  20.78125%

	Pt. Alberta Crown PNG Lease 
32628

(M00830)
	Twp. 81 Rge. 4 W6M:
Sec 11 
(Unitized Zone)
NG in Paddy
	13.53471% WI
	Alberta Crown Lessor Royalty

10% Non-Convertible GORR payable to Wyalta Resources Ltd. on 50% production paid by  Vendor 23.75%

	Pt. Alberta Crown PNG Lease 
1403-A

(M00852)
	Twp. 81 Rge. 3 W6M:
Sec 6
Twp. 81 Rge. 4 W6M: 
Secs 11 & 12 
NG in Bluesky-Bullhead, Upper Debolt, Middle Debolt (Unitized Zones)
	13.53471% WI
	Alberta Crown Lessor Royalty

10% Non-Convertible GORR payable to Wyalta Resources Ltd. on 50% production paid by   Vendor 20.78125%

	Pt. Alberta Crown PNG Lease 
1403-A

(M00852)
	Twp. 81 Rge. 3 W6M:
Sec 6
PET in Debolt

	13.53471% WI
	Alberta Crown Lessor Royalty

	Pt. Alberta Crown PNG Lease 
1403-A

(M00852)
	Twp. 81 Rge. 3 W6M:
Sec 6
Twp. 81 Rge. 4 W6M: 
Sec 12
NG in Lower Debolt
	20.78125% WI
	Alberta Crown Lessor Royalty

10% Non-Convertible GORR payable to Wyalta Resources Ltd. on 50% production paid by  Vendor 20.78125%

	Pt. Alberta Crown PNG Lease 
1403-A

(M00852)
	Twp. 81 Rge. 4 W6M:
Sec 11
NG in Lower Debolt

	20.78125% WI
	Alberta Crown Lessor Royalty
-10% Non-Convertible GORR payable to Wyalta Resources Ltd. on 50% production paid by  Vendor 23.75%

50

	
				
	LEASES
	LANDS
	VENDOR’S
INTEREST
	ENCUMBRANCES

	Alberta Crown 
PNG Lease 0512050128

(M01406)
	Twp. 81 Rge. 3 W6M:
Sec 18
All PNG Surface to Basement

	100% WI
	Alberta Crown Lessor Royalty

	Alberta Crown 
PNG Lease
 32630

(M00831)
	Twp. 81 Rge. 4 W6M:
Sec 1
PNG Surface to Base Triassic Excluding NG in Peace River, Bluesky-Bullhead
	20.78125% WI
	Alberta Crown Lessor Royalty

10% Non-Convertible GORR payable to Wyalta Resources Ltd. on 50% production paid by  Vendor 20.78125% 

	Ptn. Alberta Crown PNG Lease 
1404-A

(M00854)
	Twp. 81 Rge. 4 W6M:
Sec 1
(Unitized Zones)
NG in Bluesky-Bullhead, Debolt, Paddy
	13.53471% WI
	Alberta Crown Lessor Royalty

10% Non-Convertible GORR payable to Wyalta Resources Ltd. on 50% production paid by  Vendor 23.75%

	Ptn. Alberta Crown PNG Lease 
1404-A

(M00854)
	Twp. 81 Rge. 4 W6M:
Sec 1
NG in Peace River Excluding NG in Paddy

	20.78125% WI
	Alberta Crown Lessor Royalty

10% Non-Convertible GORR payable to Wyalta Resources Ltd. on 50% production paid by  Vendor 23.75%

	Ptn. Alberta Crown PNG Lease 
1404-A

(M00854)
	Twp. 81 Rge. 4 W6M:
Sec 1
PET in Debolt

	13.53471% WI
	Alberta Crown Lessor Royalty

	Ptn. Alberta Crown PNG Lease 
1404-A

(M00854)
	Twp. 81 Rge. 4 W6M:
Sec 23
NG in Peace River 
Excluding NG in Paddy

Twp. 81 Rge. 4 W6M:
Sec 13
NG in Peace River

Twp. 81 Rge. 4 W6M:
Sec 14
NG in Peace River, Debolt Excluding NG in Paddy, Upper Debolt, Middle Debolt
	20.78125% WI
	Alberta Crown Lessor Royalty

10% Non-Convertible GORR payable to Wyalta Resources Ltd. on 50% production paid by  Vendor 20.78125%

	Ptn. Alberta Crown PNG Lease 
1404-A

(M00854)
	Twp. 81 Rge. 4 W6M:
Sec 13
(Unitized Zone)
NG in Bluesky-Bullhead

Twp. 81 Rge. 4 W6M:
Sec 14 
(Unitized Zone)
NG in Paddy, Bluesky-Bullhead, Upper Debolt, Middle Debolt

Twp. 81 Rge. 4 W6M:
Sec 23 
(Unitized Zone)    NG in Paddy
	13.53471% WI
	Alberta Crown Lessor Royalty

10% Non-Convertible GORR payable to Wyalta Resources Ltd. on 50% production paid by  Vendor 20.78125%

51

	
				
	LEASES
	LANDS
	VENDOR’S
INTEREST
	ENCUMBRANCES

	Ptn. Alberta Crown PNG Lease 
1403-C

(M00853)
	Twp. 81 Rge. 4 W6M:
Sec 2 
(Unitized Zones)
NG in Bluesky-Bullhead, Upper Debolt, Middle Debolt
	13.53471% WI
	Alberta Crown Lessor Royalty

10% Non-Convertible GORR payable to Wyalta Resources Ltd. on 50% production paid by  Vendor 20.78125%

	Ptn. Alberta Crown PNG Lease 
1403-C

(M00853)
	Twp. 81 Rge. 4 W6M:
Sec 2
NG in Lower Debolt
	20.78125% WI
	Alberta Crown Lessor Royalty

10% Non-Convertible GORR payable to Wyalta Resources Ltd. on 50% production paid by  Vendor 20.78125%

	Ptn. Alberta Crown PNG Lease 
1356

(M00847)
	Twp. 81 Rge. 4 W6M:
S 7, Secs 21 & 28
 
NG in Debolt 
Excluding NG in Middle Debolt

Twp. 81 Rge. 5 W6M: 
W 13, Secs 14, 23 & 25
NG in Debolt 
Excluding NG in Middle Debolt
	19.000% WI
	Alberta Crown Lessor Royalty

	Ptn. Alberta Crown PNG Lease 
1356

(M00847)
	Twp. 81 Rge. 4 W6M:
S 7, Sec 21 &28 
(Unitized Zones)
NG in Middle Debolt

Twp. 81 Rge. 5 W6M:
S & NE 8, W 13, Secs 14 & 23, W 24, Sec 25 
(Unitized Zones)
NG in Bluesky-Bullhead, Middle Debolt
	13.53471% WI
	Alberta Crown Lessor Royalty

	Ptn. Alberta Crown PNG Lease 
1356

(M00847)
	Twp. 81 Rge. 5 W6M:
S & NE 8 
(Unitized Zones)
NG in Bluesky-Bullhead, Middle Debolt
	13.53471% WI
	Alberta Crown Lessor Royalty

	Ptn. Alberta Crown PNG Lease 
1356

(M00847)
	Twp. 81 Rge. 4 W6M:
S & NE 8
NG in Debolt Excluding NG in Middle Debolt
	14.2500% WI
	Alberta Crown Lessor Royalty

	Ptn. Alberta Crown PNG Lease 
1356

(M00847)
	Twp. 81 Rge. 5 W6M:
W 24
NG in Debolt 
Excluding NG in Middle Debolt

	9.5000% WI
	Alberta Crown Lessor Royalty

	Ptn. Alberta Crown PNG Lease 
29152
	Twp. 81 Rge. 4 W6M:
NW 8 
(Unitized Zones)
 NG in Bluesky-Bullhead, Middle Debolt

	13.53471% WI
	Alberta Crown Lessor Royalty

52

	
				
	LEASES
	LANDS
	VENDOR’S
INTEREST
	ENCUMBRANCES

	Ptn. Alberta Crown PNG Lease
 29152

(M00829)
	Twp. 81 Rge. 5 W6M:
E 24 
(Unitized Zones) 
NG in Bluesky-Bullhead, Middle Debolt

Twp. 81 Rge. 5 W6M:
W 17, W 20 
(Unitized Zone)
NG in Middle Debolt
	13.53471% WI
	Alberta Crown Lessor Royalty

	Ptn. Alberta Crown PNG Lease 
29152

(M00829)
	Twp. 81 Rge. 4 W6M:
NW 8
NG in Debolt 
Excluding NG in Middle Debolt

	14.2500% WI
	Alberta Crown Lessor Royalty

	Ptn. Alberta Crown PNG Lease 
29152

(M00829)
	Twp. 81 Rge. 4 W6M:
W 17
NG in Debolt 
Excluding NG in Middle Debolt

	9.5000% WI
	Alberta Crown Lessor Royalty

	Ptn. Alberta Crown PNG Lease 
29152

(M00829)
	Twp. 81 Rge. 4 W6M:
W 20
Twp. 81 Rge. 5 W6M:
E 24
NG in Debolt 
Excluding NG in Middle Debolt
	9.5000% WI
	Alberta Crown Lessor Royalty

	Alberta Crown 
PNG Lease 0512010211

(M01393)
	Twp. 81 Rge. 4 W6M:
Sec 9
PNG Base Triassic to Basement 
Excluding NG in Debolt

	100% WI
	Alberta Crown Lessor Royalty

	Alberta Crown 
PNG Lease 5494030099

(M00856)
	Twp. 81 Rge. 4 W6M:
Sec 12
PNG Base Peace River to Base of Triassic 
Excluding NG in Bluesky-Bullhead
	13.53471% WI
	Alberta Crown Lessor Royalty

	Alberta Crown 
PNG Lease 0512050129

(M01407)
	Twp. 81 Rge. 4 W6M:
Sec 13
PNG Surface to Basement Excluding NG in Peace River, Bluesky-Bullhead
	100% WI
	Alberta Crown Lessor Royalty

	Alberta Crown 
PNG Lease 0512010212

(M01394)
	Twp. 81 Rge. 4 W6M:
Sec 14
PNG Surface to Basement Excluding NG in Peace River, Bluesky-Bullhead, Debolt
	100% WI
	Alberta Crown Lessor Royalty

53

	
				
	LEASES
	LANDS
	VENDOR’S
INTEREST
	ENCUMBRANCES

	Ptn. Alberta Crown NG Lease 
1357

(M00848)
	Twp. 81 Rge. 4 W6M:
W 16
NG in Peace River, Bluesky-Bullhead, Debolt 
Excluding NG in Middle Debolt

Twp. 81 Rge. 5 W6M
NW 12
NG in Peace River, Debolt, Excluding NG in Middle Debolt
	19.000% WI
	Alberta Crown Lessor Royalty

	Ptn. Alberta Crown NG Lease 
1357

(M00848)
	Twp. 81 Rge. 4 W6M:
W 16 
(Unitized Zone)
NG in Middle Debolt

Twp. 81 Rge. 5 W6M:
NW 12
(Unitized Zones)
NG in Bluesky-Bullhead, Middle Debolt
	13.53471% WI
	Alberta Crown Lessor Royalty

	Ptn. Alberta Crown PNG Lease 0512010213

(M01395)

	Twp. 81 Rge. 4 W6M:
W 16
PNG Surface to Basement 
Excluding NG in Peace River, Bluesky-Bullhead, Debolt

Twp. 81 Rge. 4 W6M:
E 16 
PNG from Base Debolt to Basement
	100% WI
	Alberta Crown Lessor Royalty

	Ptn. Alberta Crown NG Lease 
1358

(M00849)
	Twp. 81 Rge. 4 W6M:
E 17 
NG in Paddy, Middle Debolt
(Unitized Zones)
	13.53471%
	Alberta Crown Lessor Royalty

	Ptn. Alberta Crown NG Lease 
1358

(M00849)
	Twp. 81 Rge. 4 W6M:
E 17
NG in Peace River, Debolt Excluding NG in Paddy, Middle Debolt 
	9.5000% WI
	Alberta Crown Lessor Royalty

	Ptn. Alberta Crown NG Lease 
1362

(M00851)
	Twp. 81 Rge. 4 W6M:
W 17
NG in Peace River, Excluding NG in Paddy

	9.5000% WI
	Alberta Crown Lessor Royalty

	Ptn. Alberta Crown NG Lease 
1362

(M00851)
	Twp. 81 Rge. 4 W6M:
W 17 
(Unitized Zone)
NG in Paddy

	13.53471% WI
	Alberta Crown Lessor Royalty

54

	
				
	LEASES
	LANDS
	VENDOR’S
INTEREST
	ENCUMBRANCES

	Ptn. Alberta Crown NG Lease 1359
(M00850)

	Twp. 81 Rge. 4 W6M:
E 20
NG in Debolt 
Excluding Middle Debolt
	9.5000% WI
	Alberta Crown Lessor Royalty

	Ptn. Alberta Crown NG Lease 
1359

(M00850)
	Twp. 81 Rge. 4 W6M:
E 20 
NG in Middle Debolt
(Unitized Zone)

	13.53471% WI
	Alberta Crown Lessor Royalty

	Ptn. Alberta Crown NG Lease 
1359

(M00850)
	Twp. 81 Rge. 4 W6M: 
Secs 29, 30, 31, 32
NG in Debolt
Excluding NG in Middle Debolt
	19.000% WI
	Alberta Crown Lessor Royalty

	Ptn. Alberta Crown NG Lease 1359

(M00850)
	Twp. 81 Rge. 4 W6M:
Secs  29, 30, 31, 32 
(Unitized Zone)
NG in Middle Debolt
	13.53471% WI
	Alberta Crown Lessor Royalty

	Alberta Crown 
PNG Lease 0511060763

(M01379)
	Twp. 81 Rge. 4 W6M:
E 20
PNG Base Triassic to Basement 
Excluding NG in Debolt

Twp. 81 Rge. 4 W6M:
W 20
PNG Base Debolt to Basement
	100% WI
	Alberta Crown Lessor Royalty

	Alberta Crown 
PNG Lease 0512010214

(M01396)
	Twp. 81 Rge. 4 W6M:
S & NW 21
PNG Base Stoddart to Basement 
Excluding NG in Debolt

Twp. 81 Rge. 4 W6M:
NE 21
PNG Base Debolt to Basement
	100% WI
	Alberta Crown Lessor Royalty

	Alberta Crown 
PNG Lease 0504090611

(M00258)
	Twp. 81 Rge. 4 W6M:
Sec 23
PNG Surface to Base Debolt Excluding NG in Peace River

	13.53471% WI
	Alberta Crown Lessor Royalty

	Alberta Crown 
PNG Lease 0511060764

(M01381)
	Twp. 81 Rge. 4 W6M:
Sec 28
PNG Surface to Base Basement 
Excluding NG in Peace River, Bluesky-Bullhead, Debolt
	100% WI
	Alberta Crown Lessor Royalty

	Alberta Crown 
PNG Lease 
36114

(M0835)
	Twp. 81 Rge. 4 W6M:
Sec 29
PNG Surface to Base Stoddart 
Excluding NG in Peace River

	18.445457% WI
	Alberta Crown Lessor Royalty

55

	
				
	LEASES
	LANDS
	VENDOR’S
INTEREST
	ENCUMBRANCES

	Alberta Crown 
PNG Lease 0511060765

(M01380)
	Twp. 81 Rge. 4 W6M:
Sec 29
PNG Base Stoddart to Basement  
Excluding NG in Debolt

	100% WI
	Alberta Crown Lessor Royalty

Belloy Area, AB
	
					
	LEASES
	LANDS
	VENDOR’S
INTEREST
	ENCUMBRANCES
	 

	Alberta Crown PNG Lease 
29621

(M00838)
	Twp. 78, Rge. 2 W6M:
S1⁄2  25
PNG Surface to Base Spirit River

	8.60938% WI
	Alberta Crown Lessor Royalty

Non-Convertible GORR 2.8125% gas and 1.875% oil on 48.359357% production paid to Hanna Oil & Gas Company Canada ULC by Vendor 23.75%
	 

	Alberta Crown PNG Lease 
16140

(M00837)
	Twp. 78, Rge. 2 W6M:
N1⁄2  25
PNG Surface to Base Spirit River

	8.60938% WI
	Alberta Crown Lessor Royalty

Non-Convertible GORR 2.8125% gas and 1.875% oil on 48.359375% production paid to Hanna Oil & Gas Company Canada ULC by Vendor 23.75%
	 

	Ptn. Alberta Crown PNG Lease 
40643

(M00841)
	Production from 
102/06-35-78-2 W6M well

	8.75% WI
BPPO

8.60938 % WI APPO
	Alberta Crown Lessor Royalty

Non-Convertible GORR 2.8125% gas and 1.875% oil on 48.359375% production paid to Hanna Oil & Gas Company Canada ULC by Vendor 23.75%
	 

	Ptn. Alberta Crown PNG Lease 
40643

(M00841)
	Twp. 78, Rge 2 W6M:
Sec 35
PNG Surface to Base Bluesky-Bullhead
Excluding production from 102/06-35-78-2 W6M well
	8.60938% WI

	Alberta Crown Lessor Royalty

Non-Convertible GORR 2.8125% gas and 1.875% oil on 48.359375% production paid to Hanna Oil & Gas Company Canada ULC by Vendor 23.75%
	 

	Alberta Crown PNG Lease 
0577020086

(M00836)
	Twp. 78, Rge. 2 W6M:
Sec 36
PNG Surface to Base Spirit River

	8.60938% WI
	Alberta Crown Lessor Royalty

	 

	Ptn. Alberta Crown PNG Lease 
17423

(M00822)
	Twp. 79, Rge. 2 W6M:
Sec 2
PNG Surface to Base Bluesky-Bullhead 
Excluding PNG in Spirit River Formation,  PNG in Bluesky
	300% penalty
BPPO

8.60938 % WI APPO
	Alberta Crown Lessor Royalty

Non-Convertible GORR 2.8125% gas and 1.875% oil on 48.359375% production paid to Hanna Oil & Gas Company Canada ULC by Vendor 23.75% APPO
	 

	Ptn. Alberta Crown PNG Lease 
17423

(M00822)
	Twp. 79, Rge. 2 W6M:
Sec 2
PNG 
in Spirit River Formation,  PNG in Bluesky

	8.60938% WI

	Alberta Crown Lessor Royalty

Non-Convertible GORR 2.8125% gas and 1.875% oil on 48.359375% production paid to Hanna Oil & Gas Company Canada ULC by Vendor 23.75%
	 

56

	
					
	LEASES
	LANDS
	VENDOR’S
INTEREST
	ENCUMBRANCES

	Ptn. Alberta Crown PNG Lease 
17836

(M00823)
	Twp. 79, Rge. 2 W6M:
Sec 3
PNG Surface to Base Spirit River
	8.60938% WI

	Alberta Crown Lessor Royalty

Non-Convertible GORR 2.8125% gas and 1.875% oil on 48.359375% production paid to Hanna Oil & Gas Company Canada ULC by Vendor23.75%
	 

	Ptn. Alberta Crown PNG Lease 
17836

(M00823)
	Twp. 79, Rge. 2 W6M:
Sec 4
PNG Surface to Base Spirit River
	19.59375% WI

	Alberta Crown Lessor Royalty

Non-Convertible GORR 15% gas and 10% oil on 50% production paid to Hanna Oil & Gas Company Canada ULC by Vendor 23.75%
	 

	Ptn. Alberta Crown PNG Lease 
17836

(M00823)
	Twp. 79, Rge. 2 W6M:
Sec 9
PNG Surface to Base Spirit River
	21.375 WI

	Alberta Crown Lessor Royalty

Non-Convertible GORR 15% gas and 10% oil on 50% production paid to Hanna Oil & Gas Company Canada ULC by Vendor 23.75%

Non-convertible GORR15% gas and 1/150 (5-15%) oil on 15% of production paid to Canadian Natural Resources Limited paid by Vendor 23.75%
	 

	Ptn. Alberta Crown PNG Lease 
17836

(M00823)
	Twp. 79, Rge. 2 W6M:
Sec 10
PNG Surface to Base Spirit River
	19.59375% WI

	Alberta Crown Lessor Royalty

Non-Convertible GORR 15% gas and 10% oil on 50% production paid to Hanna Oil & Gas Company Canada ULC by Vendor 23.75%
	 

57

This is Schedule "B" to an Purchase and Sale Agreement made August 10, 2015
between Barnwell of Canada, Limited, as Vendor, and Canadian Natural Resources Limited, as Purchaser

RIGHTS OF FIRST REFUSAL

	
				
	RIGHT OF FIRST REFUSAL ASSETS   
(File)
	ASSOCIATED 
AGREEMENT
	RESPONSE PERIOD
	VENDOR 
INTEREST

	80-04W6M: 
NW 25  
PNG IN BLUESKY-BULLHEAD AND PNG IN DEBOLT 
EXCLUDING NG IN BLUESKY-BULLHEAD, NG IN UPPER DEBOLT, NG IN MIDDLE DEBOLT, NG IN LOWER DEBOLT 
(C00644)
	POOLING AGREEMENT DATED MAY 26, 1972
1971 CAPL clause 2601 B
Ptn. Alberta Crown Lease #7630

	

15 Days
	17.8125% Pooled WI
Subject to: 
-Alberta Crown Lessor Royalty

	80-04W6M: 
NW 25  
NG IN BLUESKY-BULLHEAD, NG IN MIDDLE DEBOLT, NG IN LOWER DEBOLT, NG IN UPPER DEBOLT 
(C00644)
	POOLING AGREEMENT DATED MAY 26, 1972
1971 CAPL clause 2601 B
Ptn. Alberta Crown Lease #7630

	

15 Days
	17.8125% Pooled WI* 
*Includes unitized interests described in 1. below
Subject to:
-Alberta Crown Lessor Royalty

	80-04W6M:  
S&NE 25  
NG IN DEBOLT 
EXCLUDING NG IN  UPPER DEBOLT, MIDDLE DEBOLT, LOWER DEBOLT 
(C00644)
	POOLING AGREEMENT DATED MAY 26, 1972 
1971 CAPL clause 2601 B 
Ptn. Alberta Crown NG Lease #1395
	

15 Days
	17.8125% Pooled WI
Subject to:
-Alberta Crown Lessor Royalty

	80-04W6M: 
S&NE 25  
NG IN BLUESKY-BULLHEAD, NG IN UPPER DEBOLT, NG IN MIDDLE DEBOLT, NG IN LOWER DEBOLT
 (C00644)
	POOLING AGREEMENT DATED MAY 26, 1972 
 1971 CAPL clause 2601 B
Ptn. Alberta Crown NG Lease #1395
	

15 Days
	17.8125% Pooled WI* 
*Includes unitized interests
described in 1. below
Subject to:
-Alberta Crown Lessor Royalty

		
	1.
	NG in Bluesky-Bullhead, NG in Upper Debolt, NG in Middle Debolt, NG in Lower Debolt unitized under Dunvegan Gas Unit No. 1

Tract 4(a) – Tract Factor = 1.64152 

58

	
				
	RIGHT OF FIRST REFUSAL ASSETS   
(File)
	ASSOCIATED 
AGREEMENT
	RESPONSE PERIOD
	VENDOR 
INTEREST

	81-03 W6M: 
Sec 6  
NG IN DEBOLT 
EXCLUDING NG IN UPPER DEBOLT, NG IN MIDDLE DEBOLT  
 (C00658)
	MEMORANDUM OF AGREEMENT DATED DECEMBER 2, 1970
Non CAPL  clause 24
Ptn. Alberta Crown PNG Lease 1403A
	

30 Days
	20.78125% WI
Subject to:
-Alberta Crown Lessor Royalty
-10% non-convertible GORR to Wyalta Resources Ltd. on 50% of production paid by Barnwell 23.75%

	81-03 W6M:  
Sec 6 
NG IN BLUESKY-BULLHEAD 
NG IN UPPER DEBOLT, NG IN MIDDLE DEBOLT  
(C00658)
	MEMORANDUM OF AGREEMENT DATED DECEMBER 2, 1970
Non CAPL clause 24
Ptn. PNG Alberta Crown Lease 1403A
	

30 Days
	20.78125% WI* 
*Includes unitized interests 
described in 2. below
Subject to:
-Alberta Crown Lessor Royalty
-10% non-convertible GORR to Wyalta Resources Ltd. on 50% of production paid by Barnwell 23.75%

	81-03 W6M: 
Sec 6
PNG SURFACE TO BASE PEACE RIVER
(C0658)  
	MEMORANDUM OF AGREEMENT DATED DECEMBER 2, 1970
Non CAPL clause 24
Ptn. Alberta Crown PNG Lease 32628
	

30 Days
	20.78125% WI
Subject to:
-Alberta Crown Lessor Royalty
-10% non-convertible GORR to Wyalta Resources Ltd. on 50% of production paid by Barnwell 23.75%

	81-04 W6M: 
Sec 2
NG IN DEBOLT EXCL NG IN UPPER DEBOLT, NG IN MIDDLE DEBOLT  
(C0658)
	MEMORANDUM OF AGREEMENT DATED DECEMBER 2, 1970
Non CAPL clause 24
Ptn. Alberta Crown PNG Lease 1403C

	

30 Days
	20.78125% WI
Subject to:
-Alberta Crown Lessor Royalty
-10% non-convertible GORR to Wyalta Resources Ltd. on 50% of production paid by Barnwell 23.75%

	81-04 W6M: 
Sec 2 
NG IN BLUESKY-BULLHEAD 
NG IN UPPER DEBOLT, NG IN MIDDLE DEBOLT 
(C00658)
	MEMORANDUM OF AGREEMENT DATED DECEMBER 2, 1970
Non CAPL clause 24
Ptn. Alberta Crown PNG Lease 1403C

	

30 Days
	20.78125% WI* 
*Includes unitized interests 
described in 2. below
Subject to:
-Alberta Crown Lessor Royalty
-10% non-convertible GORR to Wyalta Resources Ltd. on 50% of production paid by Barnwell 23.75%

	81-04 W6M: 
Sec 2 
NG IN PADDY
(C00658)
	MEMORANDUM OF AGREEMENT DATED DECEMBER 2, 1970
Non CAPL clause 24
Ptn. Alberta Crown PNG Lease 32628

	

30 Days
	20.78125% WI* 
*Includes unitized interesst 
described in 2. below
Subject to: 
-Alberta Crown Lessor Royalty
-10% non-convertible GORR to Wyalta Resources Ltd. on 50% of production paid by Barnwell 20.78125%

	81-04 W6M:
Secs 2 & 12
PNG SURFACE TO BASE PEACE RIVER 
EXCLUDING NG IN PADDY
(C00658)
	MEMORANDUM OF AGREEMENT DATED DECEMBER 2, 1970
Non CAPL clause 24
Ptn. Alberta Crown PNG Lease 32628
	

30 Days
	20.78125% WI 
Subject to: 
-Alberta Crown Lessor Royalty
-10% non-convertible GORR to Wyalta Resources Ltd. on 50% of production paid by Barnwell 23.75%

59

	
				
	RIGHT OF FIRST REFUSAL ASSETS   
(File)
	ASSOCIATED 
AGREEMENT
	RESPONSE PERIOD
	VENDOR 
INTEREST

	81-04 W6M: 
Sec 12
NG IN DEBOLT 
EXCLUDING NG IN UPPER DEBOLT, NG IN MIDDLE DEBOLT  
	MEMORANDUM OF AGREEMENT DATED DECEMBER 2, 1970
Non CAPL clause 24
Ptn. Alberta Crown PNG Lease 1403A
	

30 Days
	20.78125 WI%
Subject to:
-Alberta Crown Lessor Royalty
-10% non-convertible GORR to Wyalta Resources Ltd. on 50% of production paid by Barnwell 23.75%

	81-04 W6M: 
Sec 12 
NG IN BLUESKY-BULLHEAD 
NG IN UPPER DEBOLT, NG IN MIDDLE DEBOLT  (C00658)
	MEMORANDUM OF AGREEMENT DATED DECEMBER 2, 1970
Non CAPL clause 24
Ptn. Alberta Crown PNG Lease 1403A
	

30 Days
	20.78125% WI* 
*Includes unitized interests 
described in 2. below
Subject to: 
-Alberta Crown Lessor Royalty
-10% non-convertible GORR to Wyalta Resources Ltd. on 50% of production paid by Barnwell 23.75%

	81-04 W6M: 
Sec 12 
NG IN PADDY
(C00658)
	MEMORANDUM OF AGREEMENT DATED DECEMBER 2, 1970
Non CAPL clause 24
Ptn. Alberta Crown PNG Lease 32628
	

30 Days
	20.78125% WI* 
*Includes unitized interests 
described in 2. below
Subject to: 
-Alberta Crown Lessor Royalty
-10% non-convertible GORR to Wyalta Resources Ltd. on 50% of production paid by Barnwell 23.75%

	81-04 W6M: 
Sec 13 
NG IN PEACE RIVER
(C00658)
	MEMORANDUM OF AGREEMENT DATED DECEMBER 2, 1970
Non CAPL clause 24
Ptn. Alberta Crown PNG Lease 1404A
	

30 Days
	20.78125% WI
Subject to:
 Alberta Crown Lessor Royalty
-10% non-convertible GORR to Wyalta Resources Ltd. on 50% of production paid by Barnwell 23.75%

	81-04 W6M: 
Sec 13 
NG IN BLUESKY-BULLHEAD  (C00658)
	MEMORANDUM OF AGREEMENT DATED DECEMBER 2, 1970
Non CAPL clause 24
Ptn. Alberta Crown PNG Lease 1404A
	

30 Days
	20.78125% WI* 
*Includes unitized interests 
described in 2. below
Subject to:
-Alberta Crown Lessor Royalty
-10% non-convertible GORR to Wyalta Resources Ltd. on 50% of production paid by Barnwell 23.75%

	81-04 W6M: 
Sec 14
NG IN PEACE RIVER AND NG IN DEBOLT 
EXCLUDING NG IN UPPER DEBOLT, NG IN MIDDLE DEBOLT, NG IN PADDY
	MEMORANDUM OF AGREEMENT DATED DECEMBER 2, 1970
Non CAPL clause 24
Ptn. Alberta Crown PNG Lease 1404A

	

30 Days
	20.78125% WI
Subject to: 
-Alberta Crown Lessor Royalty
-10% non-convertible GORR to Wyalta Resources Ltd. on 50% of production paid by Barnwell 23.75%

	81-04 W6M: 
Sec 14 
NG IN PADDY BLUESKY-BULLHEAD, NG IN UPPER DEBOLT, NG IN MIDDLE DEBOLT  
(C00658)
	MEMORANDUM OF AGREEMENT DATED DECEMBER 2, 1970
Non CAPL clause 24
Ptn. Alberta Crown PNG Lease 1404A

	

30 Days
	20.78125% WI* 
*Includes unitized interests 
described in 2. below
Subject to: 
-Alberta Crown Lessor Royalty
-10% non-convertible GORR to Wyalta Resources Ltd. on 50% of production paid by Barnwell 23.75%

60

	
				
	RIGHT OF FIRST REFUSAL ASSETS   
(File)
	ASSOCIATED 
AGREEMENT
	RESPONSE PERIOD
	VENDOR 
INTEREST

	81-04 W6M: 
Sec 23 
NG IN PEACE RIVER
EXCLUDING NG IN PADDY
(C00658)
	MEMORANDUM OF AGREEMENT DATED DECEMBER 2, 1970
Non CAPL clause 24
Ptn. Alberta Crown PNG Lease 1404A
	

30 Days
	20.78125% WI
Subject to: 
-Alberta Crown Lessor Royalty
-10% non-convertible GORR to Wyalta Resources Ltd. on 50% of production paid by Barnwell 23.75%

	81-04 W6M: 
Sec 23 
NG IN PADDY
(C00658)
	MEMORANDUM OF AGREEMENT DATED DECEMBER 2, 1970
Non CAPL clause 24
Ptn. Alberta Crown PNG Lease 1404A

	

30 Days
	20.78125% WI* 
*Includes unitized interests 
described in 2. below
Subject to:
-Alberta Crown Lessor Royalty
-10% non-convertible GORR to Wyalta Resources Ltd. on 50% of production paid by Barnwell 23.75%

	81-04 W6M: 
Sec 1 
PNG SURFACE TO BASE TRIASSIC 
EXCLUDING NG IN PEACE RIVER AND BLUESKY-BULLHEAD  
(C00658)
	MEMORANDUM OF AGREEMENT DATED DECEMBER 2, 1970
Non CAPL clause 24
Alberta Crown PNG lease 32630
	

30 Days
	20.78125% WI
Subject to:
-Alberta Crown Lessor Royalty
-10% non-convertible GORR to Wyalta Resources Ltd. on 50% of production paid by Barnwell 23.75%

	81-04 W6M: 
Sec 1 
NG IN PEACE RIVER EXCLUDING NG IN PADDY
(C00658)
	MEMORANDUM OF AGREEMENT DATED DECEMBER 2, 1970
Non CAPL clause 24
Ptn. Alberta Crown PNG lease 1404A
	

30 Days
	20.78125 % WI
Subject to:
-Alberta Crown Lessor Royalty
-10% non-convertible GORR to Wyalta Resources Ltd. on 50% of production paid by Barnwell 23.75%

	81-04 W6M: 
Sec 1 
NG IN BLUESKY-BULLHEAD 
NG IN UPPER DEBOLT, MIDDLE DEBOLT, LOWER DEBOLT
(C00658)
	MEMORANDUM OF AGREEMENT DATED DECEMBER 2, 1970
Non CAPL clause 24
Ptn. Alberta Crown PNG lease 1403A
	

30 Days
	20.78125% WI* 
*Includes unitized interests 
described in 3. below
Subject to:
-Alberta Crown Lessor Royalty
-10% non-convertible GORR to Wyalta Resources Ltd. on 50% of production paid by Barnwell 23.75%

	81-04 W6M: 
Sec 1 
NG IN PADDY
(C00658)
	MEMORANDUM OF AGREEMENT DATED DECEMBER 2, 1970
Non CAPL clause 24
Ptn. Alberta Crown PNG lease 1404A
	

30 Days
	20.78125% WI* 
*Includes unitized interests 
described in 3. below
Subject to:
-Alberta Crown Lessor Royalty
-10% non-convertible GORR to Wyalta Resources Ltd. on 50% of production paid by Barnwell 23.75%

	81-04 W6M: 
Sec 11
PNG IN FROM SURFACE TO BASE PEACE RIVER 
EXCL NG IN PADDY  

	MEMORANDUM OF AGREEMENT DATED DECEMBER 2, 1970
Non CAPL clause 24
Ptn. Alberta Crown PNG Lease  32628
	

30 Days
	20.78125% WI
Subject to: 
-Alberta Crown Lessor Royalty
-10% non-convertible GORR to Wyalta Resources Ltd. on 50% of production paid by Barnwell 23.75%

61

	
				
	RIGHT OF FIRST REFUSAL ASSETS   
(File)
	ASSOCIATED 
AGREEMENT
	RESPONSE PERIOD
	VENDOR 
INTEREST

	81-04 W6M: 
Sec 11
NG IN DEBOLT 
EXCLUDING NG IN UPPER DEBOLT, NG IN MIDDLE DEBOLT  
	MEMORANDUM OF AGREEMENT DATED DECEMBER 2, 1970
Non CAPL clause 24
Ptn. Alberta Crown PNG lease 1403A
	

30 Days
	20.78125% WI
Subject to: 
-Alberta Crown Lessor Royalty
-10% non-convertible GORR to Wyalta Resources Ltd. on 50% of production paid by Barnwell 23.75%

	81-04 W6M: 
Sec 11 
NG IN BLUESKY-BULLHEAD 
NG IN UPPER DEBOLT, NG IN MIDDLE DEBOLT  
(C00658)

	MEMORANDUM OF AGREEMENT DATED DECEMBER 2, 1970
Non CAPL clause 24
Ptn. Alberta Crown PNG lease 1403A
	

30 Days
	20.78125% WI*
(*Includes unitized interests described in 3. below)
Subject to: 
-Alberta Crown Lessor Royalty
-10% non-convertible GORR to Wyalta Resources Ltd. on 50% of production paid by Barnwell 23.75%

	81-04 W6M: 
Sec 11 
NG IN PADDY
(C00658)
	MEMORANDUM OF AGREEMENT DATED DECEMBER 2, 1970
Non CAPL clause 24
Ptn. Alberta Crown PNG Lease  32628

	

30 Days
	20.78125% WI* 
*Includes unitized interests described in 3. below
Subject to:
-Alberta Crown Lessor Royalty
-10% non-convertible GORR to Wyalta Resources Ltd. on 50% of production paid by Barnwell 23.75%

		
	2.
	NG in Bluesky-Bullhead, NG in Upper Debolt, NG in Middle Debolt, NG in Lower Debolt unitized under Dunvegan Gas Unit No. 1

Tract 4(a) – Tract Factor = 1.64152 
		
	3.
	NG in Bluesky-Bullhead, NG in Paddy, NG in Upper Debolt, NG in Middle Debolt unitized under Dunvegan Gas Unit No. 1

Tract 5 – Tract Factor  = 1.18612 
Tract 6 – Tract Factor = 3.34550 
Tract 17 – Tract Factor = 0.29890
Tract 5(A) – Tract Factor 5.17839

62

This is Schedule "C" to a Purchase and Sale Agreement made August 10, 2015
between Barnwell of Canada, Limited, as Vendor, and Canadian Natural Resources Limited, as Purchaser

UNIT

	
		
	UNIT DESCRIPTION
	VENDOR’S INTEREST

	That unit known as the Dunvegan Gas Unit No. 1 formed and operated pursuant to the Dunvegan Gas Unit No. 1 Unit Agreement and the Dunvegan Gas Unit No. 1 Unit Operating Agreement, 
both effective August 1, 1973
	Vendor’s entire right, title and interest being not less than a 13.534710% overall Unit Participation interest

63

This is Schedule "D" to a Purchase and Sale Agreement made August 10, 2015
between Barnwell of Canada, Limited, as Vendor, and Canadian Natural Resources Limited, as Purchaser

WELLS

All Unit wells, being those wells owned by and operated under the Unit; and the following specific wells:
	
			
	UWI
	WELL NAME
	LICENSE NUMBER

	100042708003W600
	DEVON ET AL 4D DUNVEG 4-27-80-3
	AB0295672

	102120207902W600
	HANNA BELLOY 12-2-79-2
	AB0216395

	102063507802W600
	HANNA BELLOY 6-35-78-2
	AB0211622

	100162908003W602
	CNRL HZ DUNVEG 16-29-80-3
	AB0190763

	100023108104W603
	CNRL DGU DUNVEG 2-31-81-4
	AB0048668

	100113108003W604
	CNRL ET AL DUNVEG 11-31-80-3
	AB0039965

	100102507802W600
	CNRL ET AL BELLOY 10-25-78-2
	AB0071196

	102032408105W603
	ANDERSON DUNVEGAN 3-24-81-5
	AB0105343

	100103607802W600
	TALISMAN ET AL BELLOY 10-36-78-2
	AB0205210

	100060907902W600
	CNRL ET AL BELLOY 6-9-79-2
	AB0055953

	100063507802W600
	HANNA BELLOY 6-35-78-2
	AB0205211

	100120207902W600
	HANNA BELLOY 12-2-79-2
	AB0207744

	100130408003W602
	CNRL DUNVEG 13-4-80-3
	AB0131795

	100150407902W600
	CNRL BELLOY 15-4-79-2
	AB0217809

	100070307902W600
	CNRL ET AL BELLOY 7-3-79-2
	AB0071162

	100162308104W600
	ANDERSON ET AL DUNVEGAN 16-23-81-4
	AB0192033

	102152908003W600
	CNRL 102 DUNVEG 15-29-80-3
	AB0209900

	100152908003W603
	CNRL DUNVEG 15-29-80-3
	AB0181864

	102132808003W600
	CNRL 102HZ DUNVEG 13-28-80-3
	AB0210638

	100102908003W600
	CNRL 102HZ DUNVEG 10-29-80-3
	AB0210503

	103152908003W602
	CNRL DUNVEG 15-29-80-3
	AB0273387

	103061208104W600
	CNRL TRIPLE DUNVEG 6-12-81-4
	AB0167940

	100102408004W603
	CNRL DGU DUNVEG 10-24-80-4
	AB0047948

	102062908104W600
	ANDERSON ET AL DUNVEGAN 6-29M-81-4
	AB0108162

	100160307902W600
	CNRL BELLOY 16-3-79-2
	AB0217618

	102080108104W602
	CNRL ET AL DUNVEG 8-1-81-4
	AB0153115

	100103507802W600
	CNRL ET AL BELLOY 10-35-78-2
	AB0061742

	100051308003W600
	CNRL DUNVEG 5-13-80-3
	AB0299192

	100012808003W600
	CNRL ET AL 1C DUNVEG 1-28-80-3
	AB0311459

	100161408003W600
	DEVON ET AL 16B DUNVEG 16-14-80-3
	AB0312671

	100030207902W600
	HANNA BELLOY 3-2-79-2
	AB0211927

	100162908003W600
	CNRL HZ DUNVEG 16-29-80-3
	AB0190763

	100113208003W600
	ANDERSON ET AL DUNVEGAN 11-32-80-3
	AB0040166

	1F1142908003W600
	CNRL DUNVEG 14-29-80-3
	AB0216110

	100053507802W600
	HANNA BELLOY 5-35-78-2
	AB0217780

	100111807801W600
	CNRL ET AL BELLOY 11-18-78-1
	AB0036907

	100053607802W600
	HANNA BELLOY 5-36-78-2
	AB0210531

	100152908003w600
	CNRL DUNVEG 15-29-80-3
	AB0181864

64

This is Schedule "E" to a Purchase and Sale Agreement made August 10, 2015
between Barnwell of Canada, Limited, as Vendor, and Canadian Natural Resources Limited, as Purchaser

FACILITIES

Vendor’s entire right, title and interest in and to the facilities associated with the Wells and Pipelines, 
including Vendor’s entire right, title and interest in and to those facilities set forth below, 
but excluding any facilities comprising part of the Excluded Assets:

	
				
	

FILES
	

FACILITY AGREEMENT 
	VENDOR’S INTEREST 
(UI*,PI**,FUPI***)
	

FACILITY
LICENCE

	DUN.U1.5A
	Facilities owned and operated pursuant to the Dunvegan Gas Unit No.1 Unit Agreement & Dunvegan Gas Unit No. 1 Unit Operating Agreement, both effective August 1, 1973
	13.534710%UI
	 

	BLO.F1.5A
	Facilities owned and operated under the Agreement for the Construction Ownership And Operation of the Central Belloy Gas Facilities, effective January 1, 1993
Functional Units: 
•    Gas Plant located at 13-16-78-1W6
•    Refrigeration Plant located at 13-16-78-1W6
•    Field Compressor located at 4-20-78-1W6
•    Water Disposal Well located at 11-18-78-1W6
•    Dehydration Facility located at 4-20-78-1W6
•    Gathering Lines from 3-20-78-1W6 to 13-16-78-1W6 plant
	6.5356% PI

6.5356% FUPI
6.5356% FUPI
6.5356% FUPI
6.5356% FUPI
6.5356% FUPI
6.5356% FUPI
	

2147000003

2147000025
214700004

2147000023

	BLO.F2.5A
	Facilities owned and operated under the Agreement for the Construction Ownership and Operation of the Northwest Belloy 16-36-79-3W6M Gas Processing Facility, effective January 1, 2001 (unexecuted draft)
Functional Units: 
•    Satellite located at 16-36-79-3W6
•    Sweetener located at 16-36-79-3W6
•    Compression and Dehydration located at 16-36-79-3W6
	3.84228% PI

3.38368% FUPI
4.51152% FUPI
3.86700% FUPI
	

#2147000025
#2147000020#2147000021

	DUN.F2.5A
	Agreement for the Construction, Ownership and Operation of the Dunvegan Debolt "BB" Oil Pool 14-29-80-3W6 Production Facility (unexecuted draft dated January 1, 2013)
	15.6514% PI
	 

	DUN.F4.5A
	Agreement for the Construction, Ownership and Operation of the Dunvegan Gas Facilities (unexecuted draft dated January 1, 2013)
•    15 functional units, including plant located at 15-3-81-4W6 and Group Pipelines in Twp 79,80 & 81 Rge 3,4 & 5 W6M
	13.53471% PI
	 

	BLO.G4.5A
	Working Interest Confirmation Letter Agreement – 
Belloy 10-35-78-2W6 to 10-19-078-01W6 Pipeline Facility, dated January 1, 2012 (unexecuted)
	8.60938% PI
	13919

	BLO.G1.5A
	Working Interest Confirmation Letter Agreement – 
Belloy Pipeline 07-03-079-02W6M to 06-09-079-02W6M, dated July 1, 2012 (unexecuted)
	4.5% PI
	15361

	BLO.F3.5A
	Belloy 11-18-78-1W6 Emulsion Battery
(No formal agreement – AFE only)
	6.5356% PI
	 

	BLO.G12.5A
	7-3-79-2W6M to 10-35-78-2W6M Gathering System
(No formal agreement – AFE only)
	8.60938% PI
	 

      *UI = Unit Interest
     **PI = Facility Participation Interest
***FUPI = Functional Unit Participation Interest

65

This is Schedule "F" to a Purchase and Sale Agreement made August 10, 2015
between Barnwell of Canada, Limited, as Vendor, and Canadian Natural Resources Limited, as Purchaser

PIPELINES

Vendor’s entire right, title and interest in and to all pipelines associated with 
the Unit, Wells and Facilities (including flowlines and gathering lines) but excluding any and all pipelines (including flowlines and gathering lines) forming part of the Excluded Assets. 

66

This is Schedule "G" to a Purchase and Sale Agreement made August 10, 2015
between Barnwell of Canada, Limited, as Vendor, and Canadian Natural Resources Limited, as Purchaser

EXCLUDED ASSETS

		
	1.
	Any and all abandoned facilities other than abandoned Unit Facilities;

		
	2.
	Any and all abandoned pipelines (including flowlines and gathering lines) other than abandoned pipelines (including flowlines and gathering lines) owned and operated pursuant to the Unit or comprising part of the Unit Facilities;

67

This is Schedule "H" to a Purchase and Sale Agreement made August 10, 2015
between Barnwell of Canada, Limited, as Vendor, and Canadian Natural Resources Limited, as Purchaser

AFEs

	
		
	AFE NUMBER
	AFE DESCRIPTION

	FF151242
	CNRL ET AL BELLOY 11-18-78-1W6

	AB142696
	100/101008104W6/00

	AB143808
	100/051908104W6/00

	AB144956
	100/140208104W6/00

	AB151034
	100/081408104W6/00

	AB151230
	100/103508004W6/00

	AB151382
	100/153508004W6/00

	AB151389
	100/060208104W6/00

	AB151391
	100/062208003W6/00

	AB151393
	100/083008104W6/00

	AB151400
	100/100208104W6/00

	AB151402
	100/091808104W6/00

	AB151403
	100/081008003W6/00

	AB151404
	100/062008104W6/00

	AB151409
	100/162608004W6/00

	AB151410
	100/100208104W6/00

	AB151414
	100/081008003W6/00

	AB151416
	100/061908104W6/00

	AB152448
	100/062008104W6/00

	AB152550
	100/150408104W6/00

	AB152943
	100/100208104W6/00

	AB153435
	100/061108003W6/00

	FP141462
	100/112108003W6/00

	FP141572
	100/060208104W6/00

	FP141573
	100/153508004W6/00

	FP141574
	100/162608004W6/00

	FP141996
	100/013508004W6/00

	FP151032
	100/150408104W6/00

	FW141914
	100/060208104W6/00

	FW142541
	100/162608004W6/00

	FW151152
	100/103508004W6/00

	TA141291
	100/061908104W6/00

	WO143021
	100/011808003W6/00

	WO143324
	100/091808003W6/00

	WO143342
	100/130908003W6/00

	WO143357
	1W0/050808104W6/00

	WO143358
	100/051608003W6/00

	WO143797
	100/071508003W6/00

	WO143854
	100/162008104W6/00

	WO143961
	100/161908104W6/02

68

	
		
	WO152229
	100/132008003W6/00

	WO152231
	100/023108003W6/00

	WO152409
	100/130808104W6/00

	AFE NUMBER
	AFE DESCRIPTION

	GE141179
	REPROCESSING 2D LINES & 3D MER

	FF141847
	531 SS - PLANT/COMP/BATTERY

	FF142003
	DUNVEGAN GAS UNIT #1 SAT 5 AND

	FF141995
	DUNVEGAN UNIT #1 PLANT

	AB143967
	BELLOY/CINDY 100/13-16-078-01W

	FF141848
	14-29-80-3W6 OIL BATTERY

	FF142147
	DGU #1 SAT #3 100/08-36-080-04

	FF151066
	DUNVEGAN UNIT #1 PLANT

	AB151386
	CNRL FAIRVIEW 4-23-080-03-6 PL

	AB151397
	CNRL FAIRVIEW 7-16-081-04W6 PL

	AB151328
	CNRL DUNVEG 5-25-80-4

	TA141245
	DGU Sat #5B Compressor

	TA141132
	DUNVEGAN PLANT

	TA141247
	DUNVEGAN PLANT

	FF141494
	DUNVEGAN PLANT

	AB142844
	100/10-10-081-04 W6 DGU

	TA141246
	DUNVEGAN PLANT

	TA141311
	8-36-80-4W6 SAT #3A&B

	FP141549
	DUNVEGAN 11-1-81-4W6 UNIT PL'S

	FP141508
	DUNVEGAN 9-21-80-3W6 UNIT PL'S

	AB143006
	ANDERSON ET AL BELLOY 11-9-78-1W6

	FC141256
	DUNVEGAN GAS UNIT #1 SAT 5

	AB143016
	BELLLOY 13-16-078-01W6 GAS PLA

	FC141321
	DUNVEGAN 14-29 BATTERY

	TA141397
	BELLOY 04-20-078-01W6 BOOSTER

	AB143515
	BELLOY 100/11-18-078-01 W6M

	TA141438
	BELLOY16-36-079-03W6

	AB151387
	CNRL FAIRVIEW 5-02-081-04W6 PL

	TA151086
	DUNVEGAN GAS PLANT 15-03-081-0

	FP151032
	FAIRVIEW 100/15-04-081-04W6 PI

	FW151152
	CNRL ET AL DUNVEG 100/10-35-08

	FF151230
	DUNVEGAN UNIT #1 PLANT

	AB151666
	FAIRVIEW 15-35-080-04W6 PIPELI

	WO151581
	CNRL DUNVEG 13-14-80-3W6

	FF151249
	FAIRVIEW 8-36-80-4W6

	AB151401
	CNRL DGU DUNVEG 9-36-81-5

	157018
	BELLOY 102/6-35-78-2 W6

	157019
	BELLOY 5-36-78-2 W6

	157020
	BELLOY 10-36-78-2W6

	156010
	BELLOY 102/12-2-79-2 W6/03

69

This is Schedule "I" to a Purchase and Sale Agreement made August 10, 2015
between Barnwell of Canada, Limited, as Vendor, and Canadian Natural Resources Limited, as Purchaser

PRODUCTION SALES CONTRACTS

Contract #1248155 - Physical Gas Confirmation Agreement dated August 29, 2014 between Barnwell of Canada, Limited and Suncor Energy Marketing Inc., being a one (1) year arrangement for gas volumes of 30 E3m3/d for the remainder of the volumes at Dunvegan #2044 which flow under an assigned FTR agreement, having an expiry date of October 31, 2017, with such volumes are assignable back to Barnwell at the end of its contract term October 31, 2015. 

Contract # 1423960 Physical Gas Transaction Confirmation Agreement dated October 28, 2014 between Barnwell of Canada, Limited and Suncor Energy Marketing Inc., being a two (2) year arrangement for gas volumes of 65 E3m3/d (increased to 70 E3m3/d in June 2015),  having an expiry date of October 31, 2016, but extendible by election no later than October 31, 2015. The original 65 e3m3/d of Barnwell’s FTP service was assigned to Suncor Energy Marketing Inc. at the commencement of the arrangement, and is assignable back to Barnwell of Canada, Limited at the end of the contract term on October 31, 2016. 

Agreement pursuant to Condensate Purchase/Sale Confirmation Notice under “July 1, 2009 General Terms and Conditions” commencing April 1, 2015 between Canadian Natural Resources and Barnwell of Canada, Limited, being a one (1) year arrangement to March 31, 2016 for the sale and delivery of segregated condensate (C5+), delivery point at the Outlet of the Dunvegan 15-03-081-04W6 Gas Plant.

Agreement pursuant to NGL Purchase/Sale Confirmation Notice under “July 1, 2009 General Terms and Conditions” commencing April 1, 2015 between Canadian Natural Resources and Barnwell of Canada, Limited, being a one (1) year arrangement to March 31, 2016 for the sale and delivery of natural gas liquids (C2+) mix, delivery point inside the NGL storage tank at Dunvegan Gas Plant located at LSD 15-03-081-04W6.

70

This is Schedule "J" to a Purchase and Sale Agreement made August 10, 2015 between 
Barnwell of Canada, Limited, as Vendor, and Canadian Natural Resources Limited, as Purchaser

GENERAL CONVEYANCE
    

This Conveyance is made September l, 2015

BETWEEN:

BARNWELL OF CANADA, LIMITED, 
a corporation, in its personal capacity and its capacity as agent and attorney 
("Vendor")

‐ and ‐

CANADIAN NATURAL RESOURCES LIMITED, 
a corporation
("Purchaser")

WHEREAS Vendor has agreed to sell and convey the Assets to Purchaser and Purchaser has agreed to purchase and accept the Assets from Vendor;

THE PARTIES AGREE AS FOLLOWS:

1.        Definitions

In this Conveyance, including the recitals, "Sale Agreement" means the Purchase and Sale Agreement made August 10, 2015 between Vendor and Purchaser.  In addition, the definitions provided for in the Sale Agreement are adopted in this Conveyance.

2.        Conveyance

Vendor, for the consideration provided for in the Sale Agreement, the receipt and sufficiency of which Vendor acknowledges, hereby sells, assigns, transfers and conveys the Assets to Purchaser, and Purchaser purchases and accepts the Assets from Vendor, TO HAVE AND TO HOLD the same absolutely, subject to the terms of the Sale Agreement, the Permitted Encumbrances and compliance with the terms of the Leases.

3.        Effective Date

This Conveyance is effective as of the Effective Date.

4.        Subordinate Document

This Conveyance is executed and delivered by the Parties pursuant to the Sale Agreement for the purposes of the provisions of the Sale Agreement, and the terms hereof shall be read in conjunction with the terms of the Sale Agreement.  The Sale Agreement shall prevail if there is a conflict between the provisions of the Sale Agreement and this Conveyance.

71

5.        Enurement

This Conveyance shall enure to the benefit of and is binding upon the Parties and their respective successors and permitted assigns.

6.        Further Assurances

Each Party shall, after the date of this Conveyance, at the other Party's request and without further consideration, do all further acts and execute and deliver all further documents which are reasonably required to perform and carry out the terms of this Conveyance.

7.        Counterpart Execution

This Conveyance may be executed in as many counterparts as are necessary and all executed counterparts together shall constitute one agreement.

IN WITNESS WHEREOF the Parties have duly executed this Conveyance.

BARNWELL OF CANADA, LIMITED 
in its personal capacity, and its capacity as agent and attorney 

Per:    
Lloyd Arnason, P. Eng.
       President & Chief Operating Officer
                        

CANADIAN NATURAL RESOURCES LIMITED 

Per:    
           Betty Yee,
            Vice President, Land    

This is the execution page to the General Conveyance made September l, 2015 between
Barnwell of Canada, Limited, as Vendor, and Canadian Natural Resources Limited, as Purchaser

72

This is Schedule "K" to a Purchase and Sale Agreement made August 10, 2015 between
Barnwell of Canada, Limited, as Vendor, and Canadian Natural Resources Limited, as Purchaser

CERTIFICATE

		
	RE:
	Purchase and Sale Agreement made August 10, 2015 between Barnwell of Canada, Limited, as Vendor, and Canadian Natural Resources Limited, as Purchaser (the "Agreement")

Unless otherwise stated, the definitions provided for in the Agreement are adopted in this Certificate.

l ("Vendor") [("Purchaser")] hereby certifies that as of the date of this Certificate:

1.        In all material respects, Vendor [Purchaser] has performed or complied with each of the terms, covenants and conditions of the Agreement to be performed or complied with by Vendor [Purchaser] on or prior to the Closing Date.

2.        Each of Vendor's [Purchaser's] representations and warranties contained in Article 6 of the Agreement was true and correct in all material respects as of the date of the Agreement and each is true and correct in all material respects as of the Closing Date.

3.        There has been no alteration of, or damage to, the Assets in the period from the Effective Date to the Closing Date.

4.        This Certificate is made with full knowledge that Purchaser [Vendor] is relying on the same for Closing.

5.         This Certificate is being provided by the undersigned in their capacity as the officer of Vendor (Purchaser) and not in any personal capacity.

IN WITNESS WHEREOF the undersigned has executed this Certificate on September l, 2015.

l

Per:    
Name:
Title:Purchase and Sale Agreement

 Exhibit 10.1 

PURCHASE AND SALE AGREEMENT 

This PURCHASE AND SALE AGREEMENT (this “Agreement”) is entered into by GIT IMESON PARK FL, LLC, a Delaware limited
liability company (“Samsonite Seller”), IN-105 HERITAGE III, LLC, a Delaware limited liability company (“Heritage Commons III Seller”), and GIT HERITAGE IV TX, LLC, a Delaware limited liability company
(“Heritage Commons IV Seller”) (Samsonite Seller, Heritage Commons III Seller and Heritage Commons IV Seller are collectively referred to herein as the “Seller” and are also each a “Seller”),
GLOBAL INCOME TRUST, INC., a Maryland corporation (“Parent”) and GRIFFIN CAPITAL CORPORATION., a California corporation (“Purchaser”), as of August 10, 2015 (the “Effective
Date”). 
 RECITALS: 

A. Samsonite Seller owns a fee simple interest in and to certain real property located in Jacksonville, Florida, upon which is located a
distribution facility known as “Imeson Park” and more particularly described in Exhibit A-1 attached hereto and made a part hereof (the “Samsonite Premises”); and 

B. Heritage Commons III Seller owns a fee simple interest in and to certain real property located in Fort Worth, Texas, upon which is located
an office building known as “Heritage Commons III” and more particularly described in Exhibit A-2 attached hereto and made a part hereof (the “Heritage Commons III Premises”); and 

C. Heritage Commons IV Seller owns a fee simple interest in and to certain real property located in Fort Worth, Texas, upon which is located
an office building known as “Heritage Commons IV” and more particularly described in Exhibit A-3 attached hereto and made a part hereof (the “Heritage Commons IV Premises”) (the Samsonite Premises, Heritage Commons
III Premises and Heritage Commons IV Premises are hereinafter collectively referred to as the “Premises”); and 
 The
parties to this Agreement have agreed to the sale and purchase of the Property (as hereinafter defined), of which the Premises are a part, on terms and conditions more particularly set forth in this Agreement. 

ARTICLE 1 
 PURCHASE
AND SALE OF PROPERTY 
 On the terms and conditions stated in this Agreement, Seller hereby agrees to sell to Purchaser, and
Purchaser hereby agrees to purchase from Seller, all of Seller’s right, title and interest in and to the following described property (collectively, the “Property”): 

1.1 Land. The Premises, together with all rights and appurtenances pertaining to the Premises, including, without limitation, all of
Seller’s right, title and interest, if any, in and to (i) all minerals, oil, gas, and other hydrocarbon substances thereon or thereunder (excepting any minerals, oil, gas and other hydrocarbon substances located on the Heritage Commons III
Premises and the Heritage Commons IV Premises), (ii) all adjacent strips, streets, roads, alleys and rights-of-way, public or private, open or proposed, (iii) all covenants, easements, privileges, and hereditaments pertaining thereto,
whether or not of record, and (iv) all access, air, water, riparian, development, utility, and solar rights (collectively, the “Land”). 

 1.2 Improvements. The buildings (the “Buildings”) constructed on the
Premises, together with all other improvements and structures constructed on each of the Premises (collectively, the “Improvements”). 

1.3 Personal Property. All of Seller’s right, title and interest in and to (specifically excluding any fixtures or personal
property owned by tenants under leases or licensees under licenses) the following, if any: (i) mechanical systems, fixtures, machinery and equipment comprising a part of or attached to or located upon or within the Improvements;
(ii) maintenance equipment and tools, if any, owned by Seller and used in connection with, and located in or at, the Improvements; (iii) site plans, surveys, plans and specifications, manuals and instruction materials, and floor plans in
Seller’s possession which relate to the Land or Improvements; (iv) pylons and other signs situated on or at the Land or Improvements; and (v) other tangible personal property owned by Seller and used exclusively in connection with,
and located in or on, the Land or Improvements as of the date of Closing (as defined in Section 8.1 below) (collectively, the “Personal Property”). 

1.4 Leases and Licenses. Seller’s right, title and interest in (i) all leases with tenants leasing all or any portion of the
Improvements (the “Leases”), and (ii) to the extent assignable, Seller’s right, title and interest in all license agreements, occupancy agreements, and other similar agreements, if any, with licensees using any portion of
the Improvements in effect as of the date of Closing (collectively, the “Licenses”), in each case to the extent the same are in effect as of the Closing Date (as defined in Section 8.1 below); a current list of such Leases and
Licenses is attached hereto as Schedule 1.4. 
 1.5 Security Deposits. Seller’s right, title and interest in all
security deposits, guaranties, and letters of credit, if any, described by the Leases and Licenses, a current list of which is attached hereto as Schedule 1.5. 

1.6 Contracts. Subject to Section 6.1.3 hereof and to the extent assignable, Seller’s right, title and interest in all
contracts and other agreements related to the Land, Improvements, Personal Property, Leases or Licenses that will remain in existence after Closing, including, without limitation, contracts or agreements relating to construction, architectural
services, parking, maintenance or other supplies or services, management, leasing or brokerage services, or any utility services, and the existing property management agreements for the Heritage Commons III Premises, the Heritage Commons IV Premises
and the Samsonite Premises (collectively, the “Contracts”), a current list of which is attached hereto as Schedule 1.6. 

1.7 Permits. Seller’s right, title and interest in all permits, licenses, certificates of occupancy, entitlements and governmental
approvals which relate exclusively to the Land or Improvements, to the extent assignable (collectively, the “Permits”). 

1.8 Intangibles. Seller’s right, title and interest, if any, in all names, trade names, street numbers, marks, other symbols,
telephone numbers and general intangibles, which relate exclusively to the Land or the Improvements, to the extent assignable, other than any of the same that reference “CNL”, “GIT”, or “Global Income Trust,” or similar
identifiers (collectively, the “Intangibles”). 

  
 2 

 ARTICLE 2 

PURCHASE PRICE AND DEPOSIT 

2.1 Purchase Price. 

2.1.1 The aggregate purchase price for the Property (“Purchase Price”) shall be NINETY-THREE MILLION SIX HUNDRED FIFTY
THOUSAND AND NO/100 DOLLARS ($93,650,000.00). The Purchase Price may be allocated among each of the Samsonite Premises, Heritage Commons III Premises and Heritage Commons IV Premises and the respective portion of the Property associated with each,
by the Purchaser, which allocation amounts shall be provided to Seller by August 15, 2015. The cash due at Closing from Purchaser on account of the Purchase Price shall be subject to adjustment as set forth in this Agreement. The Purchase Price
shall be payable as follows: 
 2.1.2 Deposit. Within two (2) Business Days (as defined in Section 14.11 below) following
the Effective Date and as a condition precedent to this Agreement, Purchaser shall deliver to Chicago Title Company, 725 South Figueroa Street, Suite 200, Los Angeles, CA 90017, Attention: Amy D. Hiraheta (the “Escrow Agent” or
“Title Company” as applicable), by federal funds wire transfer, a cash deposit in immediately available funds in the amount of THREE MILLION AND NO/100 DOLLARS ($3,000,000.00) (together with any interest accrued thereon, the
“Deposit”), which Deposit shall immediately be non-refundable to Purchaser, except as otherwise provided herein. If Purchaser shall fail to deposit the Deposit with Escrow Agent within the time period provided for above, Seller may
at any time prior to Escrow Agent’s receipt of the Deposit, terminate this Agreement by written notice to Purchaser and Escrow Agent as its sole and exclusive remedy, in which case this Agreement shall be null and void ab initio,
and thereafter neither party shall have any further rights or obligations to the other hereunder, except for those which expressly survive the termination of this Agreement. Prior to Purchaser’s making the Deposit, Seller, Purchaser and Escrow
Agent shall enter into an escrow agreement in the form of Exhibit B attached hereto (the “Escrow Agreement”). Escrow Agent shall hold the Deposit in accordance with this Agreement and the Escrow Agreement and shall disburse
the Deposit to Seller at Closing. Any and all interest earned on the Deposit shall be included as part of the Deposit. If Purchaser fails to timely deliver the Deposit to Escrow Agent, such failure shall constitute a material default by Purchaser
hereunder and in addition to Seller’s other remedies hereunder, Seller may terminate this Agreement by delivering written notice to Purchaser and Escrow Agent. 

2.1.3 The balance of the Purchase Price due from Purchaser at Closing (after crediting the Deposit and the Non-Refundable Payment (as
defined below) and after application of prorations and adjustments provided for in this Agreement) shall be paid by Purchaser to Escrow Agent by federal funds wire transfer in immediately available funds no later than 2:00 p.m. (Los Angeles, CA
time) on the Closing Date and disbursed to Seller at Closing in accordance with Section 8.3.2 hereof and the Escrow Agreement. 

  
 3 

 2.1.4 Non-Refundable Payment. Within two (2) Business Days after the Effective Date,
as consideration for Seller’s agreement to enter into this Agreement and as a condition precedent to the effectiveness of this Agreement, Purchaser shall deliver directly to Seller, by wire transfer, immediately available funds in the amount of
One Hundred and No/100 Dollars ($100.00) (the “Non-Refundable Payment”). The Non-Refundable Payment shall be fully earned and retained by Seller immediately upon receipt and, notwithstanding any provisions of this Agreement to the
contrary, the Non-Refundable Payment shall not be returned to Purchaser in any circumstance. On the Closing Date, the amount of the Non-Refundable Payment, without interest, shall be applied to the Purchase Price. The Non-Refundable Payment shall
not constitute a part of the Deposit. Purchaser acknowledges that Seller would not have entered into this Agreement had Purchaser not made the bargained for Non-Refundable Payment to Seller on the terms set forth in this Section 2.1.4. 

ARTICLE 3 
 TITLE

 3.1 State of Title to be Conveyed. Title to the Property shall be conveyed to Purchaser free from all liens, encumbrances,
encroachments and other exceptions to title except (i) the Leases and Licenses, (ii) matters caused by Purchaser or the activities of Purchaser or its agents, employees, consultants, contractors and Representatives on the Property,
(iii) real estate taxes, sewer rents and taxes, water rates and charges, vault charges and taxes, business improvement district taxes and assessments and any other governmental taxes, charges or assessments levied or assessed against the
Property, including any so-called payments in lieu of taxes, in each case which are a lien but not yet due and payable, subject to proration in accordance with Section 8.5.4 below, (iv) applicable zoning and building ordinances and land
use regulations and any and all other present and future laws, rules, regulations, statutes, ordinances, orders or other legal requirements affecting the Property, (v) those certain loans which Purchaser has agreed to assume, which loans and
loan documents are further described on Schedule 3.1(a), attached hereto (the “Existing Loans”), and (vi) all existing matters of record shown on Schedule 3.1(b) (the matters in (i) through
(vi) collectively referred to as the “Permitted Exceptions”). Notwithstanding the foregoing, in no event shall a Seller Encumbrance constitute a Permitted Exception and Purchaser shall have no obligation to object to any Seller
Encumbrance. As used herein “Seller Encumbrance” means non-monetary liens and encumbrances voluntarily placed on record against the Property by Seller (and without the written consent of Purchaser which consent may be granted or
withheld in Purchaser’s reasonable discretion) after the Effective Date, any and all monetary liens and security interests voluntarily placed on record against the Property by Seller (and without the written consent of Purchaser which consent
may be granted or withheld in Purchaser’s sole and absolute discretion), whether recorded or placed on record prior to or after the Effective Date, and any mechanics’ liens. Notwithstanding the foregoing, in no event shall the Existing
Loans as described hereinabove be a Seller Encumbrance. Seller at its sole cost and expense shall and is hereby obligated to cause to be released at or prior to the Closing all Seller Encumbrances. Evidence of title shall be the issuance by the
Title Company (as defined below) at Closing of its standard 2006 ALTA Owner’s Extended Coverage Policy of Title Insurance covering the Samsonite Premises, its ALTA Form T-1 Owner’s Policy of Title Insurance covering the Heritage Commons
III Premises and Heritage Commons IV Premises, and those title endorsements listed on Schedule 3.1(c) and any other title endorsements required by existing lenders, together, in the full amount of the Purchase Price, subject only to the Permitted
Exceptions (the “Title Policy”).  

  
 4 

 3.2 Title Objections. With respect to any title or survey matters first arising after the
date of Purchaser’s title commitment and survey and prior to the Closing which adversely affects the value or operation of the Property, other than any of the Permitted Exceptions (to which Purchaser shall have no right to object), or such
other encumbrances by Purchaser, which consent shall not be unreasonably withheld, conditioned or delayed (collectively, the “Title Objections”), Seller shall have the right, but not the obligation, to cure such Title Objection(s)
(other than a Seller Encumbrance which Seller is obligated to cure). If Seller fails prior to Closing to cure or satisfy any Title Objections(s) that Seller has elected, or is required pursuant to Section 3.1 hereinabove, to cure or satisfy,
then Purchaser may: (a) accept a conveyance of the Property subject to the Permitted Exceptions, specifically including such Title Objection(s) which Seller has failed to cure or satisfy (which such Title Objection(s) shall thereafter be deemed
to be a Permitted Exception), without reduction of the Purchase Price, or (b) terminate this Agreement by sending written notice thereof to Seller and Escrow Agent, and upon delivery of such notice of termination, this Agreement shall
terminate, the Deposit shall be immediately returned to Purchaser, Seller shall promptly reimburse Purchaser for its actual third party out-of-pocket costs and expenses (including reasonable attorneys’ fees) incurred in connection with the
transactions contemplated by this Agreement up to Two Hundred Twenty Five Thousand and No/100 Dollars ($225,000.00) and thereafter neither party hereto shall have any further rights, obligations or liabilities hereunder except for those matters
which expressly survive termination of this Agreement. 
 ARTICLE 4 

PURCHASER’S DUE DILIGENCE AND ACKNOWLEDGEMENT  

4.1 Access. After the Effective Date, Seller shall, upon reasonable notice (which notice may be given by email to scott.hall@cnl.com)
and at reasonable times, make the Property available to Purchaser and its agents, employees, consultants and representatives for such inspections and tests as Purchaser deems appropriate, at Purchaser’s sole cost and expense. Purchaser shall
provide notice to Seller at least one (1) Business Day prior to any entry onto the Property by Purchaser or Purchaser’s agents, employees, consultants or representatives. Seller shall have the right to have a representative present during
all or any of Purchaser’s inspections and tests. Purchaser will use reasonable efforts to minimize interference with Seller’s operations at the Property and the rights of tenant of the Property. Purchaser shall not permit any
mechanics’ liens to be filed against all or any part of the Property. In the event Purchaser discovers any matter during the course of its investigations and tests which may be reportable under applicable law, Purchaser acknowledges and agrees
that it shall not undertake any such reporting (unless required by law), but shall notify Seller immediately of any such discovery. Seller’s prior written consent (which may be by email) shall be required prior to any interviews of any tenants
of the Property by Purchaser or its agents, employees, consultants and representatives, and Seller shall have a right to have a representative present during all tenant interviews. Notwithstanding anything to the contrary contained herein:
(a) Purchaser’s right of inspection pursuant to this Section 4.1 shall be subject to the rights of tenants under the Leases and other occupants and users of the Property; (b) no entry, inspection or investigation of the
Property shall (i) involve the taking of samples or other physically invasive procedures without 

  
 5 

 
the prior written consent of Seller, which consent may be withheld in Seller’s sole and absolute discretion; or (ii) damage any part of the Property or any personal property owned or
held by Seller, any tenant or any third party; (c) Purchaser shall promptly pay when due the costs of all tests, investigations, studies and examinations done with regard to the Property by or on behalf of Purchaser; and (d) Purchaser
acknowledges and agrees that its access and the inspections and tests resulting therefrom shall not give rise to any rights permitting Purchaser to either terminate this Agreement or adjust the Purchase Price, and that any and all rights, if any, to
do so shall be limited to those provided specifically herein. 
 4.2 Indemnity. Purchaser hereby agrees to indemnify, defend, and
hold harmless Seller, its partners, members, affiliates, property manager, and their respective officers, directors, agents, employees, and representatives (collectively, the “Indemnified Parties”) from and against any and all
liens, claims, or damages of any kind or nature, including any demands, actions or causes of actions, assessments, losses, costs, expenses, liabilities, interest and penalties, and reasonable attorneys’ fees (“Claims”)
suffered, incurred, or sustained by any of the Indemnified Parties caused by the entry on the Property by Purchaser or its agents, employees, consultants or representatives or by Purchaser’s investigations of the Property unless such Claims
arise or are caused by Seller’s gross negligence or willful misconduct; provided, however that Purchaser shall have no obligation to indemnify the Indemnified Parties with respect to Purchaser’s mere discovery (as opposed to exacerbation)
of pre-existing conditions or issues. Purchaser will promptly repair all damage to the Property arising from Purchaser’s inspections or tests, including any damage that may have been caused by Purchaser or its agents, employees, consultants or
representatives in the conduct of the review, and shall promptly restore the Property substantially to its condition immediately before such inspections and tests. Notwithstanding anything set forth herein to the contrary, the indemnification and
restoration obligations of Purchaser in this Section 4.1.2 shall survive Closing or the earlier termination, for any reason, of this Agreement. Purchaser shall provide to Seller prior to its or its agents’, employees’,
consultants’ or representatives’ entry on the Property certificates of liability insurance insuring Purchaser and Seller in an amount not less than Two Million and No/100 Dollars ($2,000,000.00).  

4.3 As Is, Where Is. 

4.3.1 Express Representations. Purchaser acknowledges and agrees that it has been given a full opportunity to inspect and investigate
every aspect of the Property, including all matters related to legal status and requirements, physical condition, title, and any and all other matters Purchaser determines to be of significance. Except as provided in the express representations and
warranties of Seller set forth in Sections 5.1 and 12.1 of this Agreement and except as may be expressly set forth in the documents executed and delivered by Seller at Closing, and subject to the limitations of time and money set forth in Sections
5.4 and 10.2 herein (collectively, the “Express Representations”), Seller does not, by the execution and delivery of this Agreement, and Seller shall not, by the execution and delivery of any document or instrument executed and
delivered in connection with Closing, make any representation or warranty, express or implied, of any kind or nature whatsoever, with respect to the Property, and all such representations and warranties are hereby disclaimed. 

  
 6 

 4.3.2 Disclaimed Matters. Without limiting the generality of the foregoing, other than the
Express Representations, Seller makes, and shall make, no express or implied warranty as to matters of zoning, acreage, building square footage, tax consequences, physical or environmental condition (including, without limitation, laws, rules,
regulations, orders and requirements pertaining to the use, handling, generation, treatment, storage or disposal of any toxic or hazardous waste or toxic, hazardous or regulated substance), valuation, governmental approvals, governmental regulations
or any other matter or thing relating to or affecting the Property (collectively, the “Disclaimed Matters”). 

4.3.3 No Person acting on behalf of Seller is authorized to make, and by execution hereof, Purchaser acknowledges that no Person has
made, any representation, agreement, statement, warranty, guarantee or promise regarding the Property or the transaction contemplated herein or the zoning, construction, physical condition or other status of the Property except for the Express
Representations. No representation, warranty, agreement, statement, guarantee or promise, if any, made by any Person acting on behalf of Seller other than the Express Representations will be valid or binding on Seller. 

PURCHASER ACKNOWLEDGES AND AGREES THAT, EXCEPT FOR THE EXPRESS REPRESENTATIONS, SELLER HAS NOT MADE, DOES NOT MAKE AND SPECIFICALLY NEGATES
AND DISCLAIMS ANY REPRESENTATIONS, WARRANTIES, PROMISES, COVENANTS, AGREEMENTS OR GUARANTIES OF ANY KIND OR CHARACTER WHATSOEVER, WHETHER EXPRESS OR IMPLIED, ORAL OR WRITTEN, PAST, PRESENT OR FUTURE, OF, AS TO, CONCERNING OR WITH RESPECT TO
(I) VALUE; (II) THE INCOME TO BE DERIVED FROM THE PROPERTY; (III) THE SUITABILITY OF THE PROPERTY FOR ANY AND ALL ACTIVITIES AND USES WHICH MAY BE CONDUCTED THEREON, INCLUDING, WITHOUT LIMITATION, THE POSSIBILITIES, IF ANY, FOR FUTURE
DEVELOPMENT OF THE PROPERTY; (IV) THE HABITABILITY, MERCHANTABILITY, MARKETABILITY, PROFITABILITY OR FITNESS FOR A PARTICULAR PURPOSE OF THE PROPERTY; (V) THE MANNER, QUALITY, STATE OF REPAIR OR LACK OF REPAIR OF THE PROPERTY; (VI) THE NATURE,
QUALITY OR CONDITION OF THE PROPERTY, INCLUDING, WITHOUT LIMITATION, THE INDOOR AND OUTDOOR ENVIRONMENT AIR QUALITY, WATER, SOIL AND GEOLOGY; (VII) THE COMPLIANCE OF OR BY THE PROPERTY OR ITS OPERATION WITH ANY LAWS, RULES, ORDINANCES OR REGULATIONS
OF ANY APPLICABLE GOVERNMENTAL AUTHORITY OR BODY; (VIII) THE MANNER OR QUALITY OF THE CONSTRUCTION OR MATERIALS, IF ANY, INCORPORATED INTO THE PROPERTY; (IX) COMPLIANCE WITH ANY FEDERAL, STATE, AND LOCAL ENVIRONMENTAL PROTECTION, POLLUTION, HEALTH
AND SAFETY OR LAND USE LAWS, RULES, REGULATIONS, ORDINANCES, ORDERS, REQUIREMENTS OR COMMON LAW, INCLUDING, WITHOUT LIMITATION, TITLE III OF THE AMERICANS WITH DISABILITIES ACT OF 1990, AS AMENDED, THE FEDERAL WATER POLLUTION CONTROL ACT, AS
AMENDED, THE RESOURCE CONSERVATION AND RECOVERY ACT, AS AMENDED, THE COMPREHENSIVE ENVIRONMENTAL RESPONSE, COMPENSATION AND LIABILITY ACT OF 1980, AS AMENDED, THE SAFE DRINKING WATER ACT, AS AMENDED, THE HAZARDOUS MATERIALS TRANSPORTATION ACT, AS
AMENDED, THE OCCUPATIONAL SAFETY AND HEALTH ACT OF 1970, AS AMENDED, THE TOXIC SUBSTANCE CONTROL ACT, 

  
 7 

 
AS AMENDED, AND REGULATIONS PROMULGATED UNDER ANY OF THE FOREGOING AND ANALOGOUS STATE STATUTES AND REGULATIONS; (X) THE PRESENCE OR ABSENCE OF HAZARDOUS OR TOXIC MATERIALS, SUBSTANCES OR
WASTE AT, ON, UNDER, OR ADJACENT TO THE PROPERTY (SUBSECTIONS IX AND X HEREIN COLLECTIVELY REFERRED TO AS, “ENVIRONMENTAL MATTERS”); (XI) THE CONTENT, COMPLETENESS OR ACCURACY OF ANY PROPERTY INFORMATION, THE SURVEY OR THE TITLE
REPORT; (XII) THE CONFORMITY OF THE IMPROVEMENTS TO ANY PLANS OR SPECIFICATIONS FOR THE PROPERTY INCLUDING ANY PLANS AND SPECIFICATIONS THAT MAY HAVE BEEN OR MAY BE PROVIDED TO PURCHASER; (XIII) THE CONFORMITY OF THE PROPERTY TO PAST, CURRENT OR
FUTURE APPLICABLE ZONING OR BUILDING REQUIREMENTS; (XIV) DEFICIENCY OF ANY UNDERSHORING, (XV) DEFICIENCY OF ANY DRAINAGE; (XVI) THE FACT THAT ALL OR A PORTION OF THE PROPERTY MAY BE LOCATED ON OR NEAR AN EARTHQUAKE FAULT LINE; (XVII) THE EXISTENCE
OF VESTED LAND USE, ZONING OR BUILDING ENTITLEMENTS AFFECTING THE PROPERTY; OR (XVIII) ANY OTHER MATTER. PURCHASER FURTHER ACKNOWLEDGES AND AGREES THAT, HAVING BEEN GIVEN THE OPPORTUNITY TO INSPECT THE PROPERTY AND REVIEW INFORMATION AND
DOCUMENTATION AFFECTING THE PROPERTY, PURCHASER IS RELYING SOLELY ON ITS OWN INVESTIGATION OF THE PROPERTY AND REVIEW OF SUCH INFORMATION AND DOCUMENTATION, AND NOT ON ANY INFORMATION PROVIDED OR TO BE PROVIDED BY SELLER, EXCEPT AS EXPRESSLY SET
FORTH IN THE EXPRESS REPRESENTATIONS. PURCHASER FURTHER ACKNOWLEDGES AND AGREES THAT ANY INFORMATION MADE AVAILABLE TO PURCHASER OR PROVIDED OR TO BE PROVIDED BY OR ON BEHALF OF SELLER WITH RESPECT TO THE PROPERTY WAS OBTAINED FROM A VARIETY OF
SOURCES AND THAT SELLER HAS NOT MADE ANY INDEPENDENT INVESTIGATION OR VERIFICATION OF SUCH INFORMATION AND MAKES NO REPRESENTATIONS AS TO THE ACCURACY OR COMPLETENESS OF SUCH INFORMATION, EXCEPT AS EXPRESSLY SET FORTH IN THE EXPRESS REPRESENTATIONS.
WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, PURCHASER SHALL FURTHER BE DEEMED TO HAVE ACKNOWLEDGED AND AGREED THAT (A) SELLER HAS FULLY COMPLIED WITH ALL DISCLOSURE REQUIREMENTS UNDER LOCAL, STATE AND FEDERAL LAWS, (COLLECTIVELY, THE
“DISCLOSURE LAWS”), AND (B) PURCHASER’S RIGHTS AND REMEDIES WITH RESPECT TO THE PROPERTY SHALL BE LIMITED TO THE RIGHTS AND REMEDIES (INCLUDING ALL CONDITIONS AND LIMITATIONS PLACED THEREON) EXPRESSLY SET FORTH IN THIS
AGREEMENT, AND PURCHASER HEREBY WAIVES ALL RIGHTS AND REMEDIES THAT MIGHT OTHERWISE BE AVAILABLE TO PURCHASER UNDER THE DISCLOSURE LAWS. PURCHASER HEREBY ACKNOWLEDGES AND AGREES THAT PURCHASER SHALL NOT BE ENTITLED TO RELY ON ANY REPORTS OR OTHER
PROPERTY INFORMATION SUPPLIED BY SELLER TO PURCHASER, EXCEPT AS SET FORTH IN THE EXPRESS REPRESENTATIONS PURCHASER AGREES TO FULLY AND IRREVOCABLY RELEASE SELLER FROM ANY AND ALL CLAIMS THAT PURCHASER MAY NOW HAVE OR HEREAFTER ACQUIRE AGAINST SELLER
FOR ANY COSTS, LOSS, LIABILITY, DAMAGE, EXPENSE, DEMAND, ACTION OR CAUSE OF ACTION ARISING FROM SUCH INFORMATION OR DOCUMENTATION, EXCEPT 

  
 8 

 
TO THE EXTENT ARISING OUT OF A BREACH BY SELLER OF A REPRESENTATION OR WARRANTY (SUBJECT TO THE LIMITATIONS OF TIME AND MONEY SET FORTH IN SECTIONS 5.4 AND 10.2 HEREIN) MADE IN THE EXPRESS
REPRESENTATIONS. SELLER IS NOT LIABLE OR BOUND IN ANY MANNER BY ANY ORAL OR WRITTEN STATEMENTS, REPRESENTATIONS OR INFORMATION PERTAINING TO THE PROPERTY, OR THE OPERATION THEREOF, FURNISHED BY ANY REAL ESTATE BROKER, AGENT, EMPLOYEE, SERVANT OR
OTHER PERSON TO THE EXTENT NOT EXPRESSLY SET FORTH IN THE EXPRESS REPRESENTATIONS. PURCHASER FURTHER ACKNOWLEDGES AND AGREES THAT TO THE MAXIMUM EXTENT PERMITTED BY LAW, THE SALE OF THE PROPERTY AS PROVIDED FOR HEREIN IS MADE ON AN “AS IS”
CONDITION AND BASIS WITH ALL FAULTS AND DEFECTS, AND THAT SELLER HAS NO OBLIGATIONS TO MAKE REPAIRS, REPLACEMENTS OR IMPROVEMENTS EXCEPT AS MAY OTHERWISE BE EXPRESSLY STATED HEREIN. PURCHASER REPRESENTS, WARRANTS, AND COVENANTS TO SELLER, WHICH
REPRESENTATION, WARRANTY, AND COVENANT TO SELLER SHALL SURVIVE THE CLOSING AND NOT BE MERGED WITH THE DEED, THAT, EXCEPT FOR SELLER’S EXPRESS REPRESENTATIONS, PURCHASER IS RELYING SOLELY UPON PURCHASER’S OWN INVESTIGATION OF THE PROPERTY.

 4.3.4 Waiver. Without in any way limiting any provision of this Section 4.3, Purchaser specifically acknowledges and agrees
that, except with respect to the Express Representations and the obligations of Seller set forth in Section 5.1 of this Agreement, Purchaser hereby waives, releases and discharges any claim, known or unknown, it has, might have had, or may have
against Seller with respect to (a) the Disclaimed Matters, (b) subject to Article 9 of this Agreement, the condition of the Property as of the Closing Date, (c) the past, present or future condition or compliance of the Property with
regard to any federal, state or local law, statute, ordinance, rule, regulation, order or determination of any governmental authority or agency affecting the Property, including without limitation those pertaining to Environmental Matters, or
(d) any other state of facts that exists with respect to the Property or any of the Property information supplied by Seller. 

ARTICLE 5 

REPRESENTATIONS AND WARRANTIES 

5.1 Seller’s Representations and Warranties. As a material inducement for Purchaser to enter into this Agreement, each of the
Sellers represents to Purchaser, as of the Effective Date, as follows: 
 5.1.1 Organization. Each Seller is duly formed and
validly existing under the laws of the jurisdiction of its organization and is qualified to transact business in the jurisdiction where each of the Premises is located. 

5.1.2 Authority/Consent. Each Seller possesses all requisite power and authority, and has taken all actions required by its
organizational documents and applicable law, has obtained all necessary consents, to execute and deliver this Agreement and will, by Closing, have taken all actions required by its organizational documents and applicable law to consummate the
transactions contemplated by this Agreement. The board of directors of the 

  
 9 

 
Parent (the “Parent Board”), at a duly held meeting, has, by unanimous vote of all of the Parent Board members voting, (i) duly and validly authorized the execution and
delivery of this Agreement and declared advisable the transactions contemplated by this Agreement, (ii) directed that the transactions contemplated by this Agreement be submitted for consideration at a meeting of the holders of shares of common
stock of the Parent, $.01 par value per share (the “Parent Common Stock”), for the purpose of seeking the affirmative vote of the holders of shares of the Parent Common Stock entitled to cast a majority of all the votes entitled to
be cast on the matter (the “Parent Stockholder Approval”), including any postponement or adjournment thereof (the “Parent Stockholder Meeting”), and (iii) resolved to recommend that the stockholders vote in
favor of the approval of the transactions contemplated by this Agreement (the “Seller’s Recommendation”) and to include such recommendation in the Proxy Statement. As used herein, a “Proxy Statement” is a proxy
statement in preliminary and definitive form relating to the Parent Stockholder Meeting (together with any amendments or supplements thereto). This Agreement and the Seller’s Closing Documents (hereinafter defined) are, or will be when executed
and delivered by Seller, legally binding on, and enforceable against, Seller, in accordance with their respective terms, except as the same may be limited by applicable bankruptcy, insolvency, reorganization, receivership and other similar laws
affecting the rights and remedies of creditors generally and by general principles of equity. Seller owns fee simple title to the Property subject to all matters of record and no third party has any right to purchase all or any part of the Property.

 5.1.3 Bankruptcy. No bankruptcy, insolvency, reorganization or similar action or proceeding, whether voluntary or involuntary, is
pending, or, to Seller’s knowledge, has been threatened in writing, against Seller. 
 5.1.4 No Conflicts. Assuming receipt of
the Parent Stockholder Approval (as defined hereunder), the execution and delivery of this Agreement by Seller and the consummation by Seller of the transactions contemplated hereby will not: (i) violate any judgment, order, injunction, or
decree to which Seller is subject, or (ii) conflict with, result in a breach of, or constitute a default under the organizational documents of Seller or any lease, mortgage, loan agreement, covenant, or other agreement or instrument to which
Seller is a party or by which Seller is bound. 
 5.1.5 Foreign Person. Seller is not a “foreign Person,” “foreign
trust” or “foreign corporation” (as those terms are defined in the Internal Revenue Code of 1986, as amended, and related Income Tax Regulations). 

5.1.6 OFAC. Neither Seller nor, to Seller’s knowledge, any of its equity owners nor any of their respective employees, officers or
directors, is a Person or entity with whom U.S. Persons or entities are restricted from doing business under regulations of the Office of Foreign Asset Control of the Department of the Treasury (“OFAC”), (including those named on
OFAC’s Specially Designated and Blocked Persons List) or under any similar 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 similar governmental action. 

  
 10 

 5.1.7 Leases. Seller has delivered to Purchaser a correct and complete copy of each Lease
and all amendments thereto, and except for the Leases, there are no other leases or occupancy agreements applicable to the Property which will be binding on Purchaser after the Closing. The Leases do not grant the tenants a right to purchase all or
any part of the Property. Between the date hereof and the earlier of the Closing Date or the termination of this Agreement, Seller shall not amend, modify or terminate the Leases, or enter into new leases, of spaces at the Property, other than in
accordance with Section 6.1.1 below. As of the date hereof, Seller is the holder of all of the landlord’s right, title and interest in, to and under the Leases. The Leases are in full force and effect. Seller, to its knowledge, has
not received, nor is Seller aware of, any claim from any tenant under the Leases alleging any type of default by the landlord under the Leases that has not been cured or demanding any work that has not been performed or payment from landlord that
has not been made. The $2,324,484 Letter of Credit under the Samsonite Premises Lease (the “Samsonite LOC”) is in full force and effect and has not been drawn upon. 

5.1.8 Intentionally deleted. 

5.1.9 Service Contracts. All Contracts (other than management agreements and leasing commission agreements) affecting the Property
between Seller (or any managing agent on behalf of Seller) and third parties relating to the maintenance and operation of the Property, including without limitation any agreements providing for utility services, are accurately set forth on Schedule
1.6 hereto. To Seller’s knowledge, the documents constituting the Contracts that are delivered to or made available to Purchaser are true, correct and complete copies of all of the Contracts affecting the Property. Seller has not given or
received any written notice of any breach or default under the Contracts which remains uncured. 
 5.1.10 Litigation. Seller has not
been served with or received written notice of any suit, action, arbitration, or legal or other proceeding or governmental investigation which (i) if determined adversely to Seller, materially and adversely affects the use or value of the
Property owned by such Seller, or (ii) questions the validity of this Agreement or any action taken or to be taken pursuant hereto, or (iii) involves condemnation or eminent domain proceedings involving the Property owned by Seller or any
portion thereof. Seller hereby discloses the existence of the suit initiated by Seller relative to alleged manufacturing defects of windows, which is more fully set forth on Schedule 5.1.10 attached hereto (the “Heritage IV
Litigation”). The Seller hereby agrees to reimburse Purchaser for one hundred percent (100%) of the cost (including labor, materials and all other reasonable related costs) to replace up to two hundred five (205) window glass
units at the Heritage IV Premises within thirty (30) days after written request by Purchaser with accompanying invoices (the “Window Replacement Reimbursement”). The Window Replacement Reimbursement Obligation shall expressly
survive Closing for a period of three (3) years and the Contract Liabilities Floor (as hereinafter defined) shall expressly not apply. The parties agree and acknowledge that Seller shall have no obligation to settle or cause the Heritage IV
Litigation to be dismissed, that the Heritage IV Litigation shall survive Closing and that Seller shall remain expressly responsible for any and all costs, expenses, liabilities and obligations thereunder. In addition, Seller shall retain the right
to recover any proceeds from any settlement or judgment relating to the Heritage IV Litigation, which right shall expressly survive Closing. 

  
 11 

 5.1.11 Violations. To Seller’s knowledge, and except as set forth on Exhibit N
attached hereto and made a part hereof, Seller has not received any written notice from a governmental authority of any (i) pending or threatened condemnation proceedings affecting the Property, or any part thereof; (ii) any violations of
applicable zoning laws with respect to the Property which have not heretofore been cured; or (iii) any violations of any other laws, rules or regulations (including any environmental law) relating to the use or operation of the Property which
have not been heretofore been cured. 
 5.1.12 Condemnation/Zoning. Seller has received no written notice from any governmental
authority of any pending or contemplated condemnation or change of zoning affecting the Property. Seller has not applied for a rezoning of the Property or any change in the entitlements which apply to the Property during the last five (5) years).

 5.1.13 Leasing Commissions. There are no lease brokerage agreements, leasing commission agreements or other agreements providing
for payments of any amounts for leasing activities or procuring tenants with respect to the Property owned by such Seller or any portion or portions thereof other than as disclosed in Schedule 5.1.13 attached hereto (the “Commission
Agreements”), and all leasing commissions and brokerage fees accrued or due and payable under the Commission Agreements with respect to such Property as of the date hereof and at the Closing have been or shall be paid in full or shall be
credited to Purchaser. 
 5.1.14 Environmental Condition. As of the date hereof and as may be disclosed in the environmental reports
and or/other items identified on Exhibit L attached hereto, Seller has received no notices from any governmental authority of any Hazardous Conditions relating to the Property and Seller has not caused any Hazardous Conditions created on the
Property. As used herein, the term “Hazardous Conditions” refers to the presence on, in or about the Property (including ground water) of Hazardous Materials, the concentration, condition, quantity, location or other characteristic
of which fails to comply with the standards applicable, relevant, or appropriate under applicable environmental laws. In turn, the term “Hazardous Materials” shall mean any chemical, substance, waste, material, equipment, or fixture
defined as hazardous, toxic, a pollutant, a contaminant, or otherwise regulated under any environmental law, including but not limited to, a petroleum and petroleum products, waste oil, halogenated and non-halogenated solvents, PCB’s and
asbestos. 
 5.1.15 Management Agreement. Except for those certain management agreements more particularly described on Exhibit
K attached hereto and made a part hereof (each and any one or more, a “Management Agreement” or the “Management Agreements”), there is no other agreement currently in effect relating to the management of the
Property owned by Seller by any third-party management company. 
 5.1.16 Taxes and Assessments. Except as may be set forth on
Exhibit M attached hereto and made a part hereof, Seller has not filed, and has not retained anyone to file, notices of protests against, or to commence action to review, real property tax assessments against the Property owned by such
Seller. 
 5.1.17 Further Encumbrances. Except as otherwise expressly provided herein, Seller shall not further encumber the Property
or any of the improvements or personal property located thereon. Between the date of this Agreement and the earlier of the Closing Date or the termination of this Agreement, Seller shall not voluntarily create any exception to title to its Property
other than in accordance with Section 6.1.1 below. 

  
 12 

 5.1.18 Development, Cost-Sharing, Recapture and Entitlement Agreements. To Seller’s
knowledge, there exist no non-recorded development, cost-sharing, recapture, entitlement or like-kind agreements burdening either Seller or Seller’s Property that will survive the Closing of the transactions described by this Agreement. 

5.1.19 Proxy Statement/Exchange Act. The execution and delivery of this Agreement by the Seller does not, and the performance of this
Agreement by the Seller will not, require any consent, approval, authorization or permit of, or filing with or notification to, any Governmental Authority, except (i) the filing with the United States Securities and Exchange Commission (the
“SEC”) of (A) a Proxy Statement and (B) such reports under, and other compliance with, the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder (the “Exchange
Act”) and the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder (the “Securities Act”) as may be required in connection with this Agreement and the transactions contemplated by this
Agreement. For the purposes of this Agreement, “Governmental Authority” shall mean any United States (federal, state or local) or foreign government, arbitration panel, or any governmental or quasi-governmental, regulatory, judicial
or administrative authority, board, bureau, agency, commission (including the IRS and any other U.S. federal authority, board, bureau, agency, commission or other body and any state, local and/or foreign Tax authority, board, bureau, agency,
commission or other body) or self-regulatory organization. 
 5.1.20 Opinion of Financial Advisor. A committee of the Parent Board
made up of the independent directors of the Parent Board has received the oral opinion of SunTrust Robinson Humphrey, Inc., to be confirmed in writing, to the effect that, as of the date of such opinion and subject to the assumptions,
qualifications, limitations and other matters set forth in such written opinion, the aggregate Purchase Price to be received by the Seller for the Property pursuant to this Agreement, is fair, from a financial point of view, to the Seller, taken as
a whole, and as of the date of this Agreement, such opinion has not been revoked or modified. The Seller shall make available to the Purchaser, solely for informational purposes, a complete and correct copy of such written opinion promptly after
receipt thereof by the Special Committee of the Parent Board. 
 5.1.21 Vote Required. The affirmative vote of the holders of shares
of Parent Common Stock entitled to cast a majority of all the votes entitled to be cast on the matter (the “Parent Stockholder Approval”) is the only vote of the holders of any class or series of shares of stock of the Seller
necessary to approve the transactions contemplated by this Agreement. Seller’s stockholders objecting to the transactions contemplated by this Agreement are, or may be, entitled to receive payment for the fair value of the Parent Common Stock.

 5.1.22 Existing Loans. Seller has provided to Purchaser a true, correct and complete copy of all loan documents related to the
Existing Loans. Each of the Existing Loans is in good standing and without any uncured default by Seller and the Seller is current on all payments under the Existing Loans. 

  
 13 

 5.1.23 Warranties. To Seller’s knowledge, all material warranties (e.g. roof, HVAC)
for the Property are accurately set forth on Schedule 5.1.23 attached hereto. 
 5.2 Purchaser’s Representations and Warranties.
As a material inducement for Seller to enter into this Agreement, Purchaser represents to Seller, as of the Effective Date, as follows: 

5.2.1 Organization. Purchaser is duly formed, validly existing and in good standing under the laws of the jurisdiction of its
organization and, as of the Closing Date, will be qualified to transact business in the jurisdiction where the Property is located. 

5.2.2 Authority/Consent. Purchaser possesses all requisite power and authority, has taken all actions required by its organizational
documents and applicable law, and has obtained all necessary consents, to execute and deliver this Agreement and will, by Closing, have taken all actions required by its organizational documents and applicable law to consummate the transactions
contemplated in this Agreement. 
 5.2.3 OFAC. Neither Purchaser nor any of its equity owners, nor to Purchaser’s knowledge any
of their respective employees, officers or directors, is a Person or entity with whom U.S. Persons or entities are restricted from doing business under regulations of OFAC (including those named on OFAC’s Specially Designated and Blocked
Persons List) or under any similar 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 similar
governmental action. 
 5.2.4 No Conflicts. The execution and delivery of this Agreement by Purchaser and the consummation by
Purchaser of the transactions contemplated hereby will not: (i) violate any judgment, order, injunction, or decree to which Purchaser is subject, or (ii) conflict with, result in a breach of, or constitute a default under the
organizational documents of Purchaser or any lease, mortgage, loan agreement, covenant, or other agreement or instrument to which Purchaser is a party or by which Purchaser is bound. 

5.2.5 Bankruptcy. No bankruptcy, insolvency, reorganization or similar action or proceeding, whether voluntary or involuntary, is
pending, or, to Purchaser’s knowledge, has been threatened in writing, against Purchaser. 
 5.3 Knowledge. For purposes of this
Agreement, the phrase “to Seller’s knowledge” means the present, actual knowledge (and not constructive or imputed knowledge of), of Scott Hall by reasonable inquiry of Jim Wells, and without further independent investigation or
inquiry, the Person within Seller’s or its Affiliates employ that is most knowledgeable of matters regarding the Property. For purposes of this Agreement, the phrase “to Purchaser’s actual knowledge” or words of similar meaning
or import shall mean the actual knowledge (and not constructive or imputed knowledge) of Louis Sohn, the Person within Purchaser’s or its Affiliates employ that is most responsible for supervising Purchaser’s acquisition of the Property.
There shall be no personal liability on the part of Louis Sohn arising out of any representations or warranties made herein or otherwise.  

  
 14 

 5.4 Survival. All of the representations and warranties set forth in this Article 5
shall survive the Closing for a period of twelve (12) months (“Survival Period”), subject to the provisions of Article 10 of this Agreement. After the Closing, Purchaser shall provide Seller with written notice (a
“Notice of Breach”) of any alleged breach or failure of any representation or warranty made by Seller and specifying the nature thereof within ten (10) Business Days after Purchaser’s actual knowledge of such alleged
breach or failure. Purchaser shall commence any action, suit, or proceeding with respect to any breach or failure that is the subject of the Notice of Breach, if at all, on or before the date that is forty-five (45) days after the expiration of
the Survival Period (the “Suit Deadline”). Seller acknowledges and agrees that the resolution of such action, suit, or proceeding may not occur until after the expiration of the Survival Period and the Survival Period shall be
deemed to be tolled with respect to (and only with respect to) any alleged breach or failure of a representation or warranty of which Seller receives a Notice of Breach before the expiration of the Survival Period, provided Purchaser files an
action, suit or proceeding with respect thereto prior to the Suit Deadline. During the Survival Period, all representations and warranties of the Seller that survive the Closing set forth in this Agreement shall be guaranteed by CNL Holdings, LLC, a
Florida limited liability company (the “Guarantor”) in an amount up to THREE MILLION AND 00/100 DOLLARS ($3,000,000.00). Guarantor shall also guaranty the payment of the Window Replacement Reimbursement for a period of three
(3) years after Closing. Seller or Guarantor has provided evidence of the Guarantor’s financial ability to meet the obligations hereunder to Purchaser. Notwithstanding anything to the contrary contained herein, Purchaser agrees and
acknowledges that: (a) Seller shall have no liability, obligation or responsibility, and shall not be in default under this Agreement, with respect to any representation or warranty which was true and accurate when made by Seller upon the
execution and delivery of this Agreement and which subsequently becomes untrue or inaccurate for any reason which is not a breach or default by Seller of the covenants made by or obligations of Seller in this Agreement (e.g., an untruth or
inaccuracy due to the passage of time, litigation initiated against Seller by a third party, events occurring or knowledge acquired by Seller after the Effective Date, etc.); (b) Seller shall not be liable to Purchaser for a breach of any of
the representations and warranties set forth in this Agreement if, and to the extent that, Purchaser has actual knowledge of such breach prior to Closing); (c) Purchaser’s sole remedy for any breach of which it has actual knowledge (or is
deemed to have actual knowledge) prior to Closing shall be to deliver to Seller a written notice of any alleged breach or failure of any representation or warranty made by Seller and specifying the nature thereof (a “Notice of
Breach”) prior to Closing and, should Seller fail to cure such breach within the time period set forth in Section 11.1.3.1 hereof, terminate this Agreement in accordance with Section 11.1.3.1 hereof, failing which,
Purchaser shall be deemed to have waived any breach of Seller’s representations and warranties of which Purchaser has actual knowledge (or deemed actual knowledge as set forth above) of prior to Closing; and (d) Purchaser shall have no
right to terminate this Agreement by reason of any untruth or inaccuracy in Seller’s representations and warranties which is caused by an action which Seller is authorized or permitted to take under this Agreement (subject to the terms hereof).
The provisions of this Section 5.4 shall survive the Closing or termination of this Agreement for any cause. 

  
 15 

 ARTICLE 6 

COVENANTS OF SELLER PRIOR TO CLOSING 

6.1 Operation of Property. From the Effective Date until the Closing, Seller shall operate the Property in accordance with the terms of
this Section 6.1. 
 6.1.1 From the Effective Date until the Closing, Seller shall continue to operate, maintain and repair
the Property in the ordinary course of business, but shall not take any of the following actions without the prior written consent of Purchaser, which consent shall not be unreasonably withheld, delayed or conditioned prior to the expiration of the
Inspection Period and thereafter, in Purchaser’s sole and absolute discretion, and which consent shall be deemed granted in the event that Purchaser fails to respond to a written request for its consent within ten (10) Business Days:
(a) make or permit to be made any material alterations to or upon the Property (provided, however, Purchaser’s consent shall not be required for repairs or other work of an emergency nature, as required by law, or under any Lease, provided
that Seller shall notify Purchaser of such work as soon as practicable), (b) enter into any contracts for the provision of services and/or supplies to the Property which are not terminable without premium or penalty by Purchaser upon no more
than thirty (30) days’ prior written notice, or amend or modify any of the Contracts in any material respect, unless such Contract, as amended, may be terminated without premium or penalty by Purchaser upon no more than thirty
(30) days’ prior written notice, (c) enter into any leases, licenses, or other occupancy agreements with respect to the Property or any part thereof, or extend (except pursuant to a provision of the existing Lease or License),
terminate or cancel (except in the event of a tenant default), or otherwise amend (except pursuant to a provision of the existing Lease or License that specifically contemplates or requires such amendment) any of the Leases or Licenses,
(d) remove or permit the removal from the Property of any fixtures, mechanical equipment, or any other item included in the Property except when replaced with items of equal or greater quality and value by Seller prior to Closing, and except
for the use and consumption at the Property of inventory, office and other supplies and spare parts, and the replacement of worn out, obsolete and defective tools, equipment and appliances, in each case in the ordinary course of business, or
(e) grant any easements or title encumbrances that will affect the Property or any portion thereof after the Closing Date. 

6.1.2 Seller agrees that from the date of this Agreement to the Closing Date, Seller shall: (i) at its expense, maintain its usual
maintenance program for the Property, reasonable wear and tear and damage by fire or other casualty excepted, it being understood, however, that the Property is being sold in an “AS-IS” condition as provided in Article 4 hereof;
(ii) continue to perform in all material respects its obligations as landlord under the Leases; (iii) not further mortgage any part of the Property; (iv) not make any commitment or incur any liability to any labor union, through
negotiations or otherwise with respect to the Property; and (v) cause to be maintained in full force and effect an all-risk casualty insurance policy for the Property and all improvements thereon, in substantially the same form as currently
maintained. 
 6.1.3 Purchaser may deliver a written notice to Seller setting forth which, if any, of the Contracts Purchaser has
elected to have Seller terminate. Seller will deliver notices of termination at Closing terminating those Contracts that Seller is timely notified hereunder to terminate by Purchaser, provided that (i) such Contracts are terminable in
accordance with their terms and (ii) Seller shall be responsible for, and shall indemnify Purchaser for, any termination penalties or fees. At Closing, Seller shall assign to Purchaser, to the extent assignable, and Purchaser shall assume, the
Contracts pursuant to the Assignment and Assumption Agreement (as defined in Section 8.2.1.4). 

  
 16 

 6.2 Notices. Promptly after receipt, Seller shall provide Purchaser with true and complete
copies of any written notices that Seller receives from any governmental authority with respect to (i) any special assessments or proposed increases in the valuation of the Property; (ii) any condemnation or eminent domain proceedings
affecting the Property or any portion thereof; or (iii) any material violation of any environmental law or any zoning, health, fire, safety or other law, regulation or code applicable to the Property. In addition, Seller shall deliver or cause
to be delivered to Purchaser, promptly upon the giving or receipt thereof by Seller, true and complete copies of any written notices of default or potential default or other material issue given or received by Seller under any of the Leases or
Licenses or any of the Contracts. 
 6.3 Litigation. Seller will advise Purchaser promptly of any suit, action, arbitration,
or legal or other proceeding or governmental investigation which is instituted after the Effective Date and which concerns or affects Seller or the Property, other than any such matters (such as slip and fall and similar claims) that are covered by
Seller’s insurance. For the sake of clarity, the parties acknowledge and agree that Purchaser has been apprised of the Heritage IV Litigation and is fully aware of the status thereof and that same will continue after Closing. 

6.4 Tenant Estoppels/Guarantor Certificate. Seller shall request from Samsonite, Mercedes-Benz and Dyncorp.
(“Tenants”) estoppel certificates in substantially the form as required pursuant to the Lease, or if such form is not required, Seller shall make commercially reasonable efforts to obtain, estoppel certificates in substantially the
form of Exhibit C attached hereto (the “Tenant Estoppel Certificates”). The Tenant Estoppel Certificates shall have been delivered to Purchaser in a form reasonably acceptable to Purchaser or include the contents required by
each applicable Tenant’s Lease. Purchaser shall make commercially reasonable efforts to obtain the following information in each of the Tenant Estoppel Certificates: (a) dated not more than thirty (30) days prior to the Closing Date
(except if the Closing Date is extended by Seller, and then Seller shall not be required to make commercially reasonable efforts to obtain any updates thereof), (b) executed by each such Tenant and naming Purchaser (or its designee and any
lender of which Purchaser provides written notice to Seller pursuant to the notice provision hereof as addressees), (c) verifying the basic facts of the applicable Lease (term, rental, expiration date, options, if any exist),
(d) confirming that there are no defaults by the landlord under the applicable Lease and that no impounds are paid pursuant to such Lease (or specifying the amount(s) thereof), and (e) if any Lease has been extended, modified, supplemented
or amended in any way between the Effective Date of this Agreement and the Closing, delivery to Purchaser of a reaffirmation of guaranty and estoppel certificate executed by any Guarantor, if any (the “Guarantor Certificate(s)”),
which Guarantor Certificate(s) shall reaffirm that the obligations of the Guarantor(s), if any, under its guaranty of a Lease continue in full force and effect notwithstanding such extension, modification, supplement or amendment, which Guarantor
Certificate(s) shall be dated no earlier than thirty (30) days prior to the Closing Date. The delivery of the Tenant Estoppel Certificates from the Tenants and the Guarantor Certificate(s) from the Guarantor(s) (if applicable) shall be a
condition of Closing but the failure or inability of Seller to obtain and deliver the Tenant Estoppel Certificates and/or Guarantor Certificate(s) shall not constitute a default by Seller under this Agreement. 

  
 17 

 6.5 SNDA’s. Seller shall use commercially reasonable efforts (at no cost to Seller
other than amounts for incidental expenses) to obtain and deliver to Purchaser prior to Closing a written Subordination, Non-Disturbance and Attornment Agreement (the “SNDA”) in substantially the form as required pursuant to the
Loan, or if such form is not required, in substantially the form attached as Exhibit C-2 or in the form attached to each Tenant’s Lease which form Purchaser agrees to accept signed by each such Tenant. The delivery of said SNDA from the
Tenants shall be a condition of closing but the failure or inability of Seller to obtain and deliver any SNDA shall not be a default of Seller hereunder. 

6.6 Preparation of Proxy Statement; Parent Stockholder Meeting.  

6.6.1 As promptly as reasonably practicable following the date of this Agreement, Parent shall prepare and cause to be filed with the
SEC the Proxy Statement in preliminary form. The Purchaser shall furnish all information concerning itself to Parent, as necessary for the Proxy Statement or in response to any SEC comment or request, and provide such other assistance as may be
reasonably requested in connection with the preparation, filing and distribution of the Proxy Statement. The Proxy Statement shall include all information reasonably requested by such other party to be included therein. The Parent shall promptly
notify the Purchaser upon the receipt of any comments from the SEC or any request from the SEC for amendments or supplements to the Proxy Statement, and shall, as promptly as practicable after receipt thereof, provide Purchaser with copies of all
correspondence between it and its Representatives, on the one hand, and the SEC, on the other hand, and all written comments with respect to the Proxy Statement or the received from the SEC and advise Purchaser party of any oral comments with
respect to the Proxy Statement received from the SEC. The Parent shall use its reasonable best efforts to respond as promptly as practicable to any comments from the SEC with respect to the Proxy Statement. 

6.6.2 If, at any time prior to the receipt of the Parent Stockholder Approval, any information relating to the Parent or Purchaser, or
any of their respective Affiliates, should be discovered by the Parent or Purchaser which, in the reasonable judgment of the discovering party, should be set forth in an amendment of, or a supplement to, the Proxy Statement, so that any of such
documents would not include any misstatement of a material fact or omit to state any material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading, the party which discovers such
information shall promptly notify the other parties hereto, and the Parent and Purchaser shall cooperate in the prompt filing with the SEC of any necessary amendment of, or supplement to, the Proxy Statement and, to the extent required by law, in
disseminating the information contained in such amendment or supplement to stockholders of the Parent. Nothing in this Section 6.6.2 shall limit the obligations of any party under Section 6.6.1. For purposes of this
Section 6.6.2, any information concerning or related to the Parent, the Seller, their Affiliates or the Parent Stockholder Meeting will be deemed to have been provided by the Parent, and any information concerning or related to Purchaser
or its Affiliates will be deemed to have been provided by Purchaser. 
 6.6.3 As promptly as practicable following the date of this
Agreement, the Parent shall, in accordance with applicable law and the Parent’s organization documents, establish a record date for, duly call, give notice of, convene and hold the Parent Stockholder Meeting. The Parent shall use its reasonable
best efforts to cause the Proxy Statement to be 

  
 18 

 
mailed to the stockholders of the Parent entitled to vote at the Parent Stockholder Meeting and to hold the Parent Stockholder Meeting as soon as practicable. The Parent shall, through the Parent
Board, recommend to its stockholders that they give the Parent Stockholder Approval, include such recommendation in the Proxy Statement and solicit and use its reasonable best efforts to obtain the Parent Stockholder Approval, except to the extent
that the Parent Board shall have made an Adverse Recommendation Change, as defined hereunder and as permitted by Section 6.7. Notwithstanding the foregoing provisions of this Section 6.6.3, if, on a date for which the Parent
Stockholder Meeting is scheduled, the Parent has not received proxies representing a sufficient number of shares of Parent Common Stock to obtain the Parent Stockholder Approval, whether or not a quorum is present, the Parent shall have the right to
make one or more successive postponements or adjournments of the Parent Stockholder Meeting; provided that the Parent Stockholder Meeting is not postponed or adjourned to a date that is more than (i) thirty (30) days after the date
for which the Parent Stockholder Meeting was originally scheduled (excluding any adjournments or postponements required by applicable law) or (ii) one hundred twenty (120) days after the record date for the Parent Stockholder Meeting. 

6.7 Acquisition Proposals.  

6.7.1 Subject to the other provisions of this Section 6.7, prior to the earlier of the termination of this Agreement or the
Closing Date, the Seller and Parent agree that they shall not, and shall cause each of the other Parent’s or Seller’s entities not to, and shall not authorize and shall use its reasonable best efforts to cause its and their Representatives
not to, directly or indirectly through another Person, (i) solicit, initiate, knowingly encourage or knowingly facilitate any inquiry, discussion, offer or request that constitutes, or that is reasonably likely to lead to, an Acquisition
Proposal (as defined herein), (ii) engage in any discussions or negotiations regarding, or furnish to any third party any non-public information in connection with any third party in furtherance of any Acquisition Proposal, (iii) approve
or recommend an Acquisition Proposal, (iv) approve, adopt, declare advisable or recommend, or enter into any letter of intent, memorandum of understanding, agreement in principle, acquisition agreement, merger agreement, share purchase
agreement, asset purchase agreement, share exchange agreement, option agreement or other similar definitive agreement (other than a Qualifying Confidentiality Agreement (as hereinafter defined) entered into in accordance with this
Section 6.7) providing for or relating to an Acquisition Proposal (an “Alternative Acquisition Agreement”), (v) withdraw, change, amend, modify or qualify, or otherwise propose publicly to withdraw, change, amend,
modify or qualify, in a manner adverse to the Purchaser, the Seller’s Recommendation, (vi) fail to include the Seller’s Recommendation in the Proxy Statement or any Schedule 14D-9, as applicable or (vii) resolve, agree to or
propose to do any of the foregoing (any act described in clauses (iii), (iv), (v) and (vi) above, an “Adverse Recommendation Change”). For the purposes of this Agreement, a “Qualifying Confidentiality
Agreement” means a confidentiality agreement that contains provisions as to the treatment of confidential information that are no less favorable in any material respect to the Seller and other Seller entities than those contained in that
certain confidentiality agreement between the Parent and the Purchaser, or an Affiliate thereof (the “Confidentiality Agreement”); provided, however, that such confidentiality agreement shall expressly permit any Seller
entity’s compliance with any provision of this Agreement. 

  
 19 

 6.7.2 Notwithstanding anything to the contrary in this Section 6.7, at any
time prior to obtaining the Parent Stockholder Approval, the Parent may, directly or indirectly through any Representative, in response to an unsolicited bona fide written Acquisition Proposal by a third party made after the date of this Agreement
(i) furnish non-public information to such third party (and such third party’s Representatives) making an Acquisition Proposal (provided, however, that (A) prior to so furnishing such information, the Parent receives
from the third party an executed Qualifying Confidentiality Agreement, and (B) any non-public information concerning the Seller’s entities that is provided to such third party or its Representatives
shall, to the extent not previously provided to Purchaser, be provided to Purchaser prior to or substantially at the same time that such information is provided to such third party), and (ii) engage in discussions or negotiations with such
third party (and such third party’s Representatives) with respect to the Acquisition Proposal if, in the case of each of clauses (i) and (ii), the Parent Board determines, after consultation with outside legal counsel and financial
advisors, that such Acquisition Proposal constitutes, or is reasonably likely to result in, a Superior Proposal (as hereinafter defined). Notwithstanding anything to the contrary in this Agreement, the Parent and its Representatives may contact any
third party submitting a written Acquisition Proposal after the date of this Agreement to clarify the terms of such Acquisition Proposal for the purpose of the Parent Board informing itself about such Acquisition Proposal. 

6.7.3 The Parent shall promptly notify Purchaser (but in no event later than forty-eight (48) hours after receipt) of any
Acquisition Proposal from any third party, or any written request for nonpublic information relating to the Parent, Seller or any Seller subsidiary by any Person that informs the Parent that it is considering making an Acquisition Proposal, or any
written inquiry from any Person seeking to have discussions or negotiations with the Parent relating to a possible Acquisition Proposal. Such notice shall be made orally and confirmed in writing, and shall indicate the identity of the third party
making the Acquisition Proposal, inquiry or request, and the material terms and conditions of any Acquisition Proposal, inquiry or request (including a copy thereof). The Parent shall also promptly, and in any event within forty-eight
(48) hours, notify Purchaser orally and in writing, if either the Parent or any Seller enters into discussions or negotiations concerning any Acquisition Proposal or provides nonpublic information or data to any Person in accordance with
Section 6.7.2 and shall keep Purchaser informed in all material respects of the status and terms of any such Acquisition Proposal, offers, discussions or negotiations on a current basis, including by providing a copy of all material
documentation or written correspondence relating thereto. 
 6.7.4 (i) Notwithstanding the limitations set forth in
Section 6.7.1 upon the receipt of an Acquisition Proposal, at any time prior to obtaining the Parent Stockholder Approval, the Parent Board shall be permitted to effect an Adverse Recommendation Change, if and only if, the Parent Board
(i) has received an unsolicited Acquisition Proposal (that did not result from a breach of this Section 6.7.4(i) that (A) is bona fide and (B) after consultation with outside legal counsel and financial advisors,
constitutes a Superior Proposal, and such Acquisition Proposal is not withdrawn, (ii) determines, after consultation with outside legal counsel, that failure to take such action would be inconsistent with the directors’ duties under
applicable law, (iii) has provided a written notice (a “Notice of Adverse Recommendation Change”) to Purchaser that the Parent intends to take such action, specifying the reasons therefor and, in the case of an Adverse
Recommendation Change pursuant to this Section 6.7.4(i), describing the material terms and conditions of, and attaching a complete copy of, the 

  
 20 

 
Superior Proposal that is the basis of such action, (iv) shall have allowed three (3) Business Days (the “Notice Period”) to elapse following a Notice of Adverse
Recommendation Change, (v) during such Notice Period, has considered and, at the reasonable request of Purchaser, engaged in discussions with Purchaser regarding, any adjustment or modification of the terms of this Agreement proposed by
Purchaser, and (vi) following such Notice Period, again determines in good faith (after consultation with outside legal counsel and financial advisors, and taking into account any adjustment or modification of the terms of this Agreement
proposed by Purchaser) that such Acquisition Proposal constitutes a Superior Proposal; provided, however, that (x) if, during such Notice Period, any material revisions are made to the Superior Proposal, the Parent Board shall
give a new written notice to Purchaser and shall comply with the requirements of this Section 6.7.4(i) with respect to such new written notice (provided that the Notice Period following any such new written notice shall be two
(2) Business Days) and (y) if following such Notice Period, the Parent Board does not determine that such Acquisition Proposal constitutes a Superior Proposal but the Parent Board thereafter determines to make an Adverse Recommendation
Change pursuant to this Section 6.7 with respect to a separate Acquisition Proposal, the foregoing procedures referred to in this Section 6.7.4(i) shall apply anew and shall also apply to any subsequent amendment or change
with respect thereto. Notwithstanding the limitations set forth in this Section 6.7.4, if the Parent Board has concluded after consultation with the Seller’s outside legal and financial advisors that an Acquisition Proposal
constitutes a Superior Proposal, then the Parent Board may, prior to the Parent Stockholder Approval being obtained, cause the Seller to, after complying with this Section 6.7.4(i), enter into a binding written agreement with respect to
such Superior Proposal and terminate this Agreement in accordance with Section 11.1.2.2. 
 (ii) Notwithstanding the limitations
set forth in Section 6.7.1, in circumstances not involving or relating to an Acquisition Proposal, the Parent Board may make an Adverse Recommendation Change, if and only if (i) a material development or change in circumstances has
occurred or arisen after the date of this Agreement that was neither known to the Parent Board nor reasonably foreseeable by the Parent Board as of the date of this Agreement (and which change or development does not relate to an Acquisition
Proposal), (ii) the Parent Board has first reasonably determined, after consultation with outside legal counsel, that failure to do so would be inconsistent with the exercise of the directors’ duties under applicable law, (iii) three
(3) Business Days (the “Section 6.7.4(ii) Notice Period”) shall have elapsed since the Seller has given notice to Purchaser advising Purchaser that the Parent Board intends to take such action and specifying in reasonable
detail the reasons therefor, (iv) during such Section 6.7.4(ii) Notice Period, the Parent Board has considered and, at the reasonable request of Purchaser, engaged in good faith discussions with Purchaser regarding, any adjustment or
modification of the terms of this Agreement proposed by Purchaser, and (v) the Parent Board, following such Section 6.7.4(ii) Notice Period, again reasonably determines in good faith (after consultation with outside legal counsel, and
taking into account any adjustment or modification of the terms of this Agreement proposed by Purchaser) that failure to do so would be inconsistent with the exercise of the directors’ duties under applicable Law; provided,
however, that in the event the Parent Board does not make an Adverse Recommendation Change following the Section 6.7.4(ii) Notice Period, but thereafter determines to make an Adverse Recommendation Change pursuant to this
Section 6.7.4(ii) in circumstances not involving an Acquisition Proposal, the foregoing procedures referred to in this Section 6.7.4(ii) shall apply anew. 

  
 21 

 6.7.5 Nothing contained in this Section 6.7 or elsewhere in this Agreement
shall prohibit the Parent or the Parent Board, directly or indirectly through its Representatives, from disclosing to the Parent’s stockholders a position contemplated by Rule 14e-2(a) or Rule 14d-9 promulgated under the Exchange Act or
making any disclosure to its stockholders if the Parent Board has determined, after consultation with outside legal counsel, that the failure to do so would be inconsistent with applicable law; provided, however, that this
Section 6.7.5 shall not permit the Parent Board to make an Adverse Recommendation Change except to the extent permitted by Section 6.7.4. 

6.7.6 Upon execution of this Agreement, the Parent shall, and shall cause its Representatives to immediately cease any existing
discussions, negotiations or communications with any Person conducted heretofore with respect to any Acquisition Proposal. The Parent agrees that it will use its reasonable best efforts to promptly inform its Representatives of the obligations
undertaken in this Section 6.7. The Parent shall use commercially reasonable efforts to cause all third parties who have been furnished confidential information regarding any Seller or Parent entity in connection with the solicitation
of, or discussions regarding, an Acquisition Proposal within the six (6) months prior to the date of this Agreement to promptly return or destroy such information (to the extent that they are entitled to have such information returned or
destroyed). 
 6.7.7 Notwithstanding any Adverse Recommendation Change, unless this Agreement is validly terminated in accordance
with its terms pursuant to Article 11, the Parent shall cause the approval of the transactions contemplated in this Agreement to be submitted to a vote of its stockholders at the Parent Stockholder Meeting. 

6.7.8 References in this Section 6.7 to the “Parent Board” shall include a duly authorized committee thereof.

 6.7.9 For purposes of this Agreement: 

6.7.9.1 “Acquisition Proposal” shall mean any bona fide inquiry, proposal or offer made by any Person,
whether in one transaction or a series of related transactions, relating to (A) any merger, consolidation, share exchange, business combination or similar transaction involving any of the Seller’s entities, (B) any sale, lease,
exchange, mortgage, pledge, license, transfer or other disposition, directly or indirectly, by merger, consolidation, sale of equity interests, share exchange, joint venture, business combination or otherwise, of any assets of any Seller or Parent
representing twenty percent (20%) or more of the consolidated assets of the Parent, taken as a whole as determined on a book-value basis, (C) any issue, sale or other disposition of (including by way of merger, consolidation, joint
venture, business combination, share exchange or any similar transaction) securities (or options, rights or warrants to purchase, or securities convertible into, such securities) representing twenty percent (20%) or more of the voting power of
the Seller, (D) any tender offer or exchange offer in which any Person or “group” (as such term is defined in Rule 13d-3 promulgated under the Exchange Act) shall seek to acquire beneficial ownership (as such term is defined in Rule
13d-3 promulgated under the Exchange Act), or the right to acquire beneficial ownership, of twenty percent (20%) or more of the outstanding shares of any class of voting 

  
 22 

 
securities of the Parent, or (E) any recapitalization, restructuring, liquidation, dissolution or other similar type of transaction with respect to the Parent in which a Third Party shall
acquire beneficial ownership of twenty percent (20%) or more of the outstanding shares of any class of voting securities of the Parent; provided, however, that the term “Acquisition Proposal” shall not include the transactions
contemplated by this Agreement. 
 6.7.9.2 “Superior Proposal” shall mean a bona fide written
Acquisition Proposal (except that, for purposes of this definition, the references in the definition of “Acquisition Proposal” to “twenty percent (20%)” shall be replaced by “fifty percent (50%)”) made by a third
party that, after taking into account all financial, legal, regulatory and any other factors that the Parent Board deems relevant, including, without limitation, the availability of financing, (A) if consummated, would be more favorable to the
Parent’s stockholders from a financial point of view than the transactions contemplated by this Agreement (including any adjustments to the financial terms of this Agreement proposed by Purchaser in response to such Acquisition Proposal) and
(B) if accepted, is reasonably likely to be completed on the terms proposed. 
 6.8 Notification of Certain Matters; Transaction
Litigation.  
 6.8.1 The Seller shall give prompt notice to the Purchaser, and the Purchaser shall give prompt notice to
the Seller, of any notice or other communication received by such party from any Governmental Authority in connection with this Agreement or the transactions contemplated herein, or from any Person alleging that the consent of such Person is or may
be required in connection with the transactions contemplated by this Agreement. 
 6.8.2 The Seller shall give prompt notice to the
Purchaser, and the Purchaser shall give prompt notice to the Seller, if (i) any representation or warranty made by it contained in this Agreement becomes untrue or inaccurate such that it would be reasonable to expect that the applicable
closing conditions would be incapable of being satisfied by the Closing Date or (ii) it fails to comply with or satisfy in any material respect any covenant, condition or agreement to be complied with or satisfied by it under this Agreement;
provided, however, that no such notification shall affect the representations, warranties, covenants or agreements of the parties or the conditions to the obligations of the parties under this Agreement. Without limiting the foregoing, the Seller
shall give prompt notice to the Purchaser, and the Purchaser shall give prompt notice to the Seller, if, to the knowledge of such party, the occurrence of any state of facts, change, development, event or condition would cause, or would reasonably
be expected to cause, any of the conditions to Closing set forth herein not to be satisfied or satisfaction to be materially delayed. 

6.8.3 Each of the parties hereto agrees to give prompt written notice to the other parties upon becoming aware of the occurrence or
impending occurrence of any event or circumstance relating to it or any of the other Seller’s entities or the other Purchaser’s entities, respectively, which could reasonably be expected to have, individually or in the aggregate, a
material adverse effect upon the Seller or a material adverse effect upon the Purchaser, as the case may be. 

  
 23 

 6.8.4 The Seller shall give prompt notice to the Purchaser, and the Purchaser shall give
prompt notice to the Seller, of any action commenced or, to such party’s knowledge, threatened in writing against, relating to or involving such party or any of the Seller’s entities or Purchaser’s entities, respectively, which relate
to this Agreement or the transactions contemplated by herein. The Seller shall give the Purchaser the opportunity to reasonably participate in the defense and settlement of any litigation against the Seller, the Parent and/or their respective
directors or managers relating to this Agreement and the transactions contemplated by this Agreement. The Purchaser shall give the Seller the opportunity to reasonably participate in the defense and settlement of any litigation against the Purchaser
and/or its directors relating to this Agreement and the transactions contemplated by this Agreement. 
 6.9 Public Announcements. For
so long as this Agreement is in effect, the parties hereto shall, and shall cause their respective Affiliates to, to the extent reasonably practicable, consult with each other before issuing any press release or otherwise making any public
statements or filings with respect to this Agreement or any of the transactions contemplated by this Agreement, and none of the parties shall issue any such press release or make any such public statement or filing (including, without limitation,
any public disclosure regarding the Purchase Price prior to obtaining the other parties’ consent (which consent shall not be unreasonably withheld, conditioned or delayed); provided, however, that a party may, without obtaining
the other parties’ consent, issue such press release or make such public statement or filing as may be required by law or order. If for any reason it is not reasonably practicable to consult with the other party before making any public
statement with respect to this Agreement or any of the transactions contemplated by this Agreement then the party making such statement shall not make a statement that is inconsistent with public statements or filings to which the other party had
previously consented; provided, further, that such consultation and consent shall not be required with respect to any release, communication or announcement specifically permitted by Section 6.7.  

6.10 Assumption of Existing Loans. The Premises are currently encumbered by the Existing Loans. Schedule 3.1(a) attached hereto
contains a complete list of the Existing Loan Documents, including all amendments, supplements and modifications thereto (the “Existing Loan Documents”). Seller shall not partially or wholly prepay the loan balance due under the
Existing Loan Documents except for scheduled monthly payments due thereunder, and Seller shall make all payments due thereunder prior to Closing. Prior to or promptly after the Effective Date, Seller shall contact the holder of the Existing Loan
Documents (“Holder”) and advise the Holder of this transaction and use commercially best and diligent efforts to seek the Holder’s consent to the consummation of the transaction contemplated by this Agreement (collectively, the
“Loan Assumption Approvals”). Seller shall immediately provide Purchaser copies of all correspondence regarding the Loan Assumption Approvals. Schedule 6.10 attached hereto contains a complete list of the escrows and reserves under
the Existing Loans. 
 6.11 Waiver of Right of First Refusal. As promptly as reasonably practicable following the date of this
Agreement, the Seller shall request a waiver of each of the rights of first refusal by the grantors of Heritage Commons III Premises and Heritage Commons IV Premises (collectively, the “Waiver of ROFR”) and shall use commercially
best efforts to obtain as soon as possible. Seller shall immediately provide Purchaser copies of all correspondence regarding the Waiver of ROFR. 

  
 24 

 ARTICLE 7 

CONDITIONS PRECEDENT TO CLOSING 

7.1 Conditions Precedent to Purchaser’s Obligation to Close. Purchaser’s obligation to purchase the Property is subject to
satisfaction on or before the Closing Date of the following conditions, any of which may be waived in writing by Purchaser in Purchaser’s sole and absolute subjective discretion: 

7.1.1 Approval and Consent. The Parent Stockholder Approval shall have been obtained. Purchaser may not waive this condition to
Closing. 
 7.1.2 Title. A final examination of the title to the Land by the Title Company shall disclose no title exceptions except
for the Permitted Exceptions, and Title Company shall be irrevocably committed to issue to Purchaser a standard 2006 ALTA Owner’s Extended Coverage Policy of Title Insurance covering the Samsonite Premises and an ALTA Form T-1 Owner’s
Policy of Title Insurance covering the Heritage Commons III Premises and Heritage Commons IV Premises, together with the endorsement requested by Purchaser insuring title to the Property in the full amount of the Purchase Price allocated thereto,
subject only to the Permitted Exceptions; provided, however, the Title Company’s commitment to provide any component of coverage for which the Title Company requires an ALTA survey shall only be a condition to Closing if Purchaser, at its own
expense, provides an acceptable ALTA survey to the Title Company. 
 7.1.3 Tenant Estoppels and Guarantor Certificate. Purchaser
shall have received, on or before the Closing Date, executed Tenant Estoppel Certificates from Tenants in the form outlined in each particular Tenant’s Lease or in the form described in Section 6.4 and executed Guarantor
Certificate(s) (if applicable) from the Guarantor(s) in the form described in Section 6.4. In no event will a Tenant Estoppel Certificate be deemed sufficient if it (i) raises any issue with the Samsonite concrete slab (but a mere
notice reference to the related Samsonite Settlement Agreement and the issues raised thereunder shall not be an issue provided no Landlord default is raised), or (ii) discloses any uncured material defaults or claims which adversely affect the
Property in the amount of FIFTY THOUSAND AND NO/100 DOLLARS ($50,000.00) or more in the aggregate, except for the Heritage IV Litigation, or (iii) which does not substantially comply with the form or content of Tenant estoppel provided in each
of the Leases. 
 7.1.4 SNDA. Purchaser shall have received, on or before the Closing Date, an executed SNDA from each Tenant in the
form described in Section 6.5. 
 7.1.5 Delivery of Closing Documents. Seller shall have delivered each of the Closing
Documents required to be delivered under Section 8.2.1 of this Agreement. 
 7.1.6 Covenants, Representations and Warranties.
Seller shall not be in material breach of any of covenants it has made in this Agreement. All representations and warranties of Seller set forth in this Agreement shall be true and correct in all material respects as if made on the Closing Date.

  
 25 

 7.1.7 Loan Assumption Approval. Seller shall have obtained the approval of
Purchaser’s assumption of the obligations and liabilities of each Seller under the Existing Loans from each of the applicable lenders, subject to those conditions, fees, modifications to the permitted transfer provisions (which revised
permitted transfer provisions shall also incorporate all of Purchaser’s permitted transfer provisions in that certain Assumption Agreement dated April 24, 2014 by U.S. Bank National Association, as Trustee for the registered holders of
J.P. Morgan Chase Commercial Mortgage Securities Trust 2012-C6, Commercial Mortgage Pass-Through Certificates Series 2012-C6, as lender, Oak Brook Kensington, L.L.C., as borrower, Inland Private Capital Corporation, as guarantor, The GC Lease (Oak
Brook) Investors, LLC, as buyer, and Griffin Capital Essential Asset REIT Inc., as the new guarantor, except that Purchaser shall also be entitled to the following additional permitted transfers: (a) Purchaser shall have the right, without the
consent of the applicable lender, to contribute the mortgaged property to another REIT [so long as board control of the target REIT is vested in the board of Griffin Capital Essential Asset REIT, Inc., a Maryland corporation (“Griffin REIT
I”) at the time of contribution] provided the contribution transaction is being done in contemplation of a future merger, (b) the board of Griffin REIT I has the right to terminate the REIT advisor at any time, subject to installing an
approved replacement advisor within a sixty (60) day period; Purchaser would not be obligated to pay an assumption fee in the event the REIT advisor is changing; Purchaser would not be obligated to pay any assumption fee in the event the REIT
advisor or its parent are taken public), or other requirements (including without limitation, any replacement guarantor other than Griffin REIT I), which are acceptable to Purchaser in its sole discretion (it being understood that Purchaser shall
approve an assumption fee of one percent (1%) or less of the outstanding loan amount and Purchaser shall not request any material modifications to the existing loan documents, other than modification to the existing permitted transfer
provisions). The Purchaser shall cooperate with Seller and negotiate in good faith in connection with obtaining the approvals from each of the applicable lenders described hereinabove. An additional condition precedent to the obligation of Purchaser
to close is that each of the existing lenders actually closes on the Existing Loan assumptions at Closing on terms consistent with the loan assumption consent letter and each existing lender includes in the assumption agreements to be executed by
such lender statements confirming the principal amount of the Existing Loan and that the Existing Loan is in good standing. 
 7.1.8
Occupancy Conditions. As of the Closing Date, the Samsonite Premises, the Heritage Commons III Premises, and Heritage Commons IV Premises are then no less than 100% (based upon gross leasable area) (except as set forth on the rent roll attached
as Exhibit “O”) leased to the respective Tenant under a signed Lease, in occupancy of all or substantially all of the building, and then being current in the payment of full rent and reimbursables or receiving rent abatements (for
which Seller is compensating Purchaser), pursuant to Exhibit “O” and all tenant improvement allowances and/or leasing commissions for any Lease shall have been fully paid and discharged (or credited to Purchaser at Closing) and
there shall not then exist any default under any Lease either on the part of Seller as landlord or Tenant. 
 7.1.9 Waiver of Rights of
First Refusal. Seller shall have obtained the Waivers of ROFR that are valid on the Closing Date. 

  
 26 

 7.1.9.1 REA/Association Estoppels. Seller shall have obtained and
delivered (or caused applicable third parties to deliver to Purchaser) estoppel certificates reasonably requested by Purchaser (and dated no more than 30 days prior to Closing) with respect to any declarations or restrictions recorded against the
Property which shall include, without limitation: 
 (i) Alliance Center-East Association, a Texas non-profit corporation [Heritage Commons
III – Amended and Restated Declaration of Covenants, Restrictions and Easements for Alliance Center – East]; 
 (ii) Heritage
Commons III, Ltd., a Texas limited partnership [Heritage Commons III – Specialty Warranty Deed with Vendor’s Lien]; 

(iii) Alliance Center-East Association, a Texas non-profit corporation [Heritage Commons IV – Amended and Restated Declaration of
Covenants, Restrictions and Easements for Alliance Center – East]; 
 (iv) Heritage Commons IV, Ltd., a Texas limited partnership
[Heritage Commons IV – Specialty Warranty Deed with Vendor’s Lien]; 
 (v) Imeson West I, LLC, a Florida limited liability
company [Samsonite – Specialty Warranty Deed]. 
 7.2 Conditions Precedent to Seller’s Obligation to Close.
Seller’s obligation to sell the Property is subject to satisfaction, on or before the Closing Date of the following conditions, any of which may be waived in writing by Seller, in Seller’s sole and absolute subjective discretion:

 7.2.1 Covenants. Purchaser shall have performed and observed, in all material respects, all covenants of Purchaser under this
Agreement. 
 7.2.2 Representations and Warranties. All representations and warranties of Purchaser set forth in this Agreement shall
be true and correct in all material respects as if made on the Closing Date. 
 7.2.3 Delivery of Closing Documents and Payment of
Purchase Price. Purchaser shall have delivered each of the Closing Documents required to be delivered under Section 8.3.1 of this Agreement and shall have paid into escrow the balance due of the Purchase Price. 

7.3 Failure of a Condition. 

7.3.1 General. If any condition precedent to Purchaser’s obligation to close the transactions contemplated by this Agreement, as
set forth in Section 7.1 of this Agreement, has not been satisfied on or before December 31, 2015 (the “Outside Date”), then Purchaser shall give notice to Seller of the condition or conditions that Purchaser
asserts are not satisfied. Notwithstanding the foregoing, Purchaser or Seller may elect to extend the “Outside Date” by two (2) consecutive one (1) month extensions by providing written notice to the other party on or before the
currently scheduled Outside Date. If the conditions specified in such notice are not satisfied within ten (10) Business Days after receipt of such notice (with the Closing Date 

  
 27 

 
automatically being extended to accommodate such ten (10) Business Day period), then Purchaser may terminate this Agreement by written notice to Seller and Escrow Agent, whereupon neither
party shall have any further rights or obligations hereunder (other than any obligations of either party that expressly survive termination) and the Deposit shall be immediately returned to Purchaser. Notwithstanding anything contained herein to the
contrary, if any of the conditions precedent to Purchaser’s obligation to close, as set forth in Section 7.1 of this Agreement, are not satisfied within the ten (10) Business Day period specified above and the same are
reasonably susceptible of being cured, Seller shall have the right to extend such period in which to satisfy the unsatisfied condition for a period of up to thirty (30) additional days by giving written notice thereof to the Purchaser and
Escrow Agent within the initial ten (10) Business Day period referenced above. Purchaser shall have the right to waive the unsatisfied condition or conditions by written notice to Seller and Escrow Agent given within five (5) Business Days
after expiration of the applicable satisfaction period without satisfaction having occurred, in which event the Closing Date shall be the date that is five (5) Business Days after Seller’s receipt of Purchaser’s waiver notice. If the
Closing Date is extended pursuant to this paragraph, then the Closing Date shall be the date that is the earlier to occur of five (5) Business Days after (a) the date that the unsatisfied condition has been satisfied, or
(b) Seller’s receipt of Purchaser’s waiver notice. It is understood and agreed that the failure of any condition set forth in Section 7.1 hereof that is not reasonably susceptible of being cured within the time allotted
shall not constitute a default, breach of a covenant, or other failure to perform by Seller hereunder unless such failed condition was caused by Seller’s willful and intentional actions in violation of its covenants set forth in this Agreement.
Nothing herein shall limit Purchaser’s remedies under Section 11 of this Agreement. In the event Purchaser terminates this Agreement due to Seller’s failure to satisfy Section 7.1.9 (Waiver of ROFR), Seller also shall
promptly reimburse Purchaser for its actual third party out of pocket expenses incurred in connection with this Agreement and the transactions contemplated hereby (including, but, not limited to reasonable attorneys’ fees and expenses) up to
Two Hundred Twenty-Five Thousand Dollars ($225,000.00) in addition to Purchaser’s other remedies herein. 
 If any condition precedent
to Seller’s obligation to close the transactions contemplated by this Agreement, as set forth in Section 7.2 of this Agreement, has not been satisfied on or before the Closing Date, then Seller shall give notice to Purchaser of the
condition or conditions that Seller asserts are not satisfied. If the conditions specified in such notice are not satisfied within ten (10) Business Days after receipt of such notice (with the Closing Date automatically being extended to
accommodate such ten (10) Business Day period), then Seller may terminate this Agreement by written notice to Purchaser and Escrow Agent, whereupon neither party shall have any further rights or obligations hereunder (other than any obligations
of either party that expressly survive termination) and the Deposit shall be returned to Purchaser (unless the applicable conditions are not satisfied due to a default by Purchaser under this Agreement, in which case the Deposit shall be paid to
Seller). Notwithstanding anything contained herein to the contrary, if any of the conditions precedent to Seller’s obligation to close, as set forth in Section 7.2 of this Agreement, are not satisfied within the ten (10) Business Day
period specified above and the same, in Seller’s reasonable judgment, are reasonably susceptible of being cured, Seller shall have the right to extend such period in which to satisfy the unsatisfied condition for a period of up to thirty
(30) additional days, by giving written notice thereof to Purchaser and Escrow Agent within the initial ten (10) Business Day period referenced above. Seller shall have the right to waive the unsatisfied condition or conditions by written
notice to Purchaser and 

  
 28 

 
Escrow Agent given within five (5) Business Days after expiration of the applicable satisfaction period without satisfaction having occurred, in which event the Closing Date shall be the
date that is five (5) Business Days after Purchaser’s receipt of Seller’s waiver notice. 
 Notwithstanding the foregoing or
anything set forth herein to the contrary, in no event shall the Closing Date be extended with respect to Purchaser’s failure to fund into escrow the balance of the Purchase Price due at Closing as required under this Agreement, unless
expressly agreed by Seller in writing in Seller’s sole and absolute discretion. 
 7.3.2 Waiver. If the transaction contemplated
by this Agreement closes, the parties shall be deemed to have waived any and all unmet or unsatisfied conditions subject to the provisions of Sections 5.4 and 10.2 hereof. 

ARTICLE 8 

CLOSING 
 8.1
Closing Date. The consummation of the transactions contemplated hereby (the “Closing”) shall be conducted by delivery of documents and funds in escrow to Escrow Agent on a date and time mutually agreed upon by the parties
hereto, but in no event later than the tenth (10th) Business Day after all of the conditions set forth in Article 7 (other than those conditions that by their terms are required to be satisfied or waived at the Closing, but subject to the
satisfaction or waiver of such conditions) shall have been waived or satisfied by the party entitled to the benefit of same) (the “Closing Date). The date that the Closing occurs hereunder, as such date may be extended in accordance with
this Agreement, is referred to herein as the “Closing Date”. Purchaser and Seller agree to finalize and execute all documents necessary for the consummation of the transaction contemplated herein, including, but not limited to, the
Settlement Statement (as defined in Section 8.2.1.8), and to deliver all such documents to the Escrow Agent in escrow not later than 5:00 p.m. (Orlando, FL time) on the Business Day immediately preceding the Closing Date, provided, however,
that Purchaser shall not be required to wire the funds to close to the Escrow Agent earlier than the Closing Date, to ensure the orderly and timely close of escrow and disbursement of all funds necessary for Closing by not later than 5:00 P.M.
(Orlando, FL time) on the Closing Date. 
 8.2 Seller’s Obligations at the Closing. At the Closing, Seller will do, or
cause to be done, the following: 
 8.2.1 Closing Documents. Seller shall execute, acknowledge (if necessary) and deliver originals
of the following documents (collectively, the “Closing Documents”): 
 8.2.1.1 Special Warranty Deed
in recordable and insurable form and substantially in the form of Exhibit D hereto (the “Deed”); 

8.2.1.2 Bill of Sale, substantially in the form of Exhibit E hereto; 

8.2.1.3 Assignment and Assumption Agreement with respect to the Leases and Licenses, substantially in the form of
Exhibit F-1 hereto; 

  
 29 

 8.2.1.4 Assignment and Assumption Agreement with respect to the Contracts,
substantially in the form of Exhibit F-2 hereto (the “Assignment and Assumption Agreement”); 

8.2.1.5 Certificate of Non-Foreign Status, substantially in the form of Exhibit G hereto and any required state
equivalent; 
 8.2.1.6 Letters to each tenant under the Leases and each licensee under the Licenses, substantially in
the form of Exhibit H hereto, notifying tenants and licensees of the conveyance of the Property to Purchaser and advising them that, following the Closing Date, all future payments of rent are to be made to Purchaser or at Purchaser’s
direction; 
 8.2.1.7 Written evidence reasonably acceptable to Purchaser terminating the Management Agreements for
the Property as of the Closing Date; 
 8.2.1.8 Settlement statement prepared by Escrow Agent showing all of the
payments, adjustments and prorations provided for in Section 8.5 of this Agreement or otherwise agreed upon by Seller and Purchaser (the “Settlement Statement”); 

8.2.1.9 Such transfer tax forms as may be required as a condition to the recordation of the Deed or as may be required
in connection with the transfer of the Property; and 
 8.2.1.10 An Owner’s Affidavit in the form of Exhibit
I attached hereto (the “Owner’s Affidavit”). Seller shall also deliver to the Title Company and Purchaser such evidence as may be reasonably required by the Title Company with respect to the authority of the Person(s)
executing the Deed and the other documents required to be executed by Seller on behalf of Seller. 
 8.2.1.11 Any
Estoppel Certificate and SNDA actually received from Tenant. 
 8.2.1.12 As to any warranties for materials and
workmanship (e.g. roof, HVAC, parking lot-including by way of illustration and not limitation, the roof warranty for materials and workmanship) in Seller’s possession or control, copies thereof and, to the extent assignable, an original
transfer of such warranties assented to by the material and/or service provider at no cost or expense to Purchaser. 
 8.2.2 Original
Property Information Documents. Seller will deliver to Purchaser, or make available to Purchaser at the Property, originals (or if originals are not available, complete copies) within Seller’s or its property manager’s possession of
all Leases, Licenses, Contracts and Permits and tenant correspondence files (except to the extent subject to an attorney-client privilege). 

8.2.3 Keys. Seller will deliver to Purchaser all keys to the Improvements in the possession or subject to the control of Seller,
including, without limitation, master keys as well as combinations, card keys and cards for the security systems, if any. 

  
 30 

 8.2.4 Costs. Seller will pay all costs allocated to Seller pursuant to Section 8.5.1
of this Agreement. 
 8.3 Purchaser’s Obligations at the Closing. At the Closing, Purchaser will do, or cause to be done, the
following: 
 8.3.1 Closing Documents. At Closing, Purchaser shall execute, acknowledge (if necessary) and deliver originals of the
following documents: 
 8.3.1.1 Assignment and Assumption Agreement with respect to the Leases and Licenses in the
form of Exhibit F-1 hereto; 
 8.3.1.2 Assignment and Assumption Agreement; 

8.3.1.3 Settlement Statement; 

8.3.1.4 Such transfer tax forms as may be required as a condition to the recordation of the Deed or as may be required
in connection with the transfer of the Property; and 
 8.3.1.5 Such evidence as may be reasonably required by the
Title Company with respect to the authority of the Person(s) executing the documents required to be executed by Purchaser on behalf of Purchaser. 

8.3.2 Payment of Consideration. Purchaser shall pay to Escrow Agent a sum equal to the remaining portion of the Purchase Price owed by
Purchaser in accordance with Section 2.1.3 of this Agreement, subject to the prorations and adjustments described in this Agreement. As part of the Closing under this Agreement, in accordance with this Agreement and the Escrow Agreement, Escrow
Agent shall disburse, via federal funds wire transfer of immediately available funds, to an account designated by Seller in a written notice to Escrow Agent delivered prior to the Closing Date, with such notice to contain all information necessary
for Escrow Agent to effectuate such transfer, the amount due to Seller as shown on the Settlement Statement. 
 8.3.3 Costs.
Purchaser will pay all costs allocated to Purchaser pursuant to Section 8.5.1 of this Agreement. 
 8.4 Escrow. The delivery of
the documents and the payment of the sums to be delivered and paid at the Closing shall be accomplished through an escrow with Escrow Agent and in accordance with this Agreement and the Escrow Agreement. 

8.5 Costs and Adjustments at Closing. Seller shall prepare and submit to Purchaser for Purchaser’s review, at least five
(5) Business Days prior to the Closing Date, a draft proration statement setting forth the prorations and adjustments contemplated by this Agreement. Once Seller and Purchaser have agreed on such proration statement, and at least three
(3) Business Days prior to the Closing Date, Seller and Purchaser shall submit the same to the Escrow Agent and the Escrow Agent shall prepare the Settlement Statement and submit the same to Seller and Purchaser for their approval at least two
(2) Business Days prior to the Closing Date. 

  
 31 

 8.5.1 Transaction Expenses. Purchaser shall pay (i) all costs and fees for
Purchaser’s Representatives and consultants (except as set forth in this Section 8.5.1 below), (ii) the documentary transfer taxes for the Deed, (iii) all costs and expenses of title insurance including title commitment
preparation, copies of documents of record, work and search charges and the premium for Purchaser’s standard base owner’s title insurance policy (including all curative Title Policy endorsements), (iv) all closing or escrow fees of
Escrow Agent, (v) the cost of extended coverage over the standard preprinted Title Policy exceptions, together with Title Policy endorsements required by Purchaser, (vi) all costs associated with any policy of lender’s title insurance
for Purchaser’s Lender, (vii) all costs associated with Purchaser’s financing of its purchase of the Property, including, without limitation, all recording fees and taxes and all loan fees and all prepayment costs (if applicable),
(viii) all recording fees in connection with this transaction, (ix) all costs associated with Purchaser’s assumption of liabilities, obligations and responsibilities under the Existing Loans, and (x) all costs associated with any
state and local recordation tax, documentary and other taxes and stamps, and any recording fees or mortgage taxes, in each case to the extent associated with any new mortgage or deed of trust related to Purchaser’s financing of its purchase of
the Property. Seller shall pay for all costs and expenses of (i) Seller’s Representatives and consultants, (ii) obtaining the Waivers of the ROFR, and (iii) mailing and printing the Proxy Statement and/or obtaining the Parent
Stockholder Approval. Subject to Section 15.13 below, Seller and Purchaser shall each pay its respective attorneys’ fees. 

8.5.2 Security Deposits. Seller shall pay to Purchaser, as a credit against the Purchase Price, the amount of any cash security
deposits described by the Leases and Licenses. With respect to any security deposits that are held in the form of Letters of Credit or any form other than cash, Seller shall deliver to Purchaser at the Closing the original Letters of Credit or other
applicable documents together with such original transfer and assignment documentation as may be necessary to effect the transfer of each Letter of Credit or other non-cash security deposit, provided that any transfer fees or other costs shall be
borne by the Seller. Prior to Closing, Seller shall deliver the demand schedule to the Samsonite LOC described in Section 5 thereof, in addition to some evidence from the issuer of the Samsonite LOC reasonably acceptable to Purchaser confirming
it is valid and has not been drawn upon. 
 8.5.3 Rents. All rents, percentage rents, common area charges, operating expenses, real
estate taxes, parking charges and other costs or charges paid by tenants under the Leases and licensees under the Licenses (collectively, “Rents”) shall be prorated as of the Apportionment Time (as defined below), to the extent
actually collected by Seller prior to the Closing Date. All Rents received from tenants or licensees after Closing by Seller or Purchaser will first be applied to such charges as are then due for the month in which Closing occurs and prorated
appropriately between the parties based on the Apportionment Time, and then applied first to amounts due and payable to the Purchaser for periods from and after the Apportionment Time and then to any delinquencies owed to Seller for the period prior
to the Apportionment Time. Purchaser shall remit to Seller any Rents received by Purchaser subsequent to Closing which are identified by the payor as, or otherwise clearly attributable to periods prior to Closing within ten (10) Business Days
from Purchaser’s receipt of such Rents, together with appropriate supporting documentation. Seller shall remit to Purchaser any Rents received by Seller subsequent to Closing which are attributable to periods from and after Closing within ten
(10) Business Days from Seller’s receipt of such Rents, together with appropriate supporting documentation. As used herein, the term “Apportionment Time” shall mean 11:59 p.m. Orlando, FL time on the date immediately prior
to the Closing Date. 

  
 32 

 8.5.4 Real Estate and Personal Property Taxes. All general and state-specific real estate
taxes imposed by any governmental authority (“Taxes”) for the year in which the Closing occurs shall be prorated between Purchaser and Seller as of the Closing. If the Closing occurs prior to the receipt by Seller of the tax bill
for the Property for the calendar year or other applicable tax period in which the Closing occurs, Taxes shall be prorated for such calendar year or other applicable tax period based upon the prior year’s tax bill. Notwithstanding the
foregoing, Taxes shall not be prorated with respect to any Tenant which under its Lease is obligated to pay Taxes directly to the applicable taxing authority. In addition, any deposits for real estate taxes and assessments made by any Tenant for any
period for which Purchaser would have responsibility for payment thereof shall be credited to Purchaser at Closing and shall be treated as a like-amount reduction in Purchaser’s real estate tax proration. If any general or special assessment
(as contrasted to ad valorem taxes) are payable in installments, Purchaser shall receive a cash credit at Closing for the gross amounts due. 

8.5.5 Utilities. Water, sewer, electric, fuel (if any) and other utility charges, other than those for which tenants under Leases or
licensees under Licenses are responsible directly to the provider, shall be prorated as of the Apportionment Time. If consumption of any of the foregoing is measured by meter, Seller shall, prior to the Closing Date, endeavor to obtain a reading of
each such meter and a final bill as of the Closing Date. If there is no such meter or if the bill for any of the foregoing will not have been issued as of the Closing Date, the charges therefor shall be adjusted as of the Apportionment Time on the
basis of the charges of the prior period for which such bills were issued and shall be further adjusted between the parties when the bills for the correct period are issued. Seller and Purchaser shall cooperate to cause the transfer of utility
accounts from Seller to Purchaser. Seller shall be entitled to retain any utility security deposits to be refunded by the applicable providers. At Closing, Purchaser shall post substitute utility security deposits to replace those previously paid by
Seller or, if the utility provider will not refund such deposits to Seller, Seller shall be reimbursed therefor by Purchaser at Closing. 

8.5.6 Insurance Policies. Premiums on insurance policies will not be adjusted. As of the Closing Date, Seller will terminate its
insurance coverage with respect to the Property and Purchaser will affect its own insurance coverage. 
 8.5.7 Other Operating Income and
Expenses. All other income and ordinary operating expenses for or pertaining to the Property, including, but not limited to, maintenance, service charges, and license fees, will be prorated as of the Apportionment Time. 

8.5.8 Tenant Improvement Allowances, Leasing Commissions, and Free Rent. At Closing, Seller shall give Purchaser a credit against the
Purchase Price for any outstanding tenant improvement allowances, leasing commissions, free rent and/or abatement periods (except for the nine (9) months of free rent for the Lease related to the Samsonite Premises, which free rent is related
to the last nine (9) months of the lease term pursuant to the most recent amendment to the Lease for the Samsonite Premises) and other Tenant-related restricted cash relating to the Leases and licensees under the Licenses which remain unpaid as
of the Closing Date. Purchaser shall indemnify Seller, to the extent of the credit against the Purchase Price, against any claims by a Tenant on account of such tenant improvement allowances and other amounts pursuant to this Section. 

  
 33 

 8.5.9 True-Up of Operating Expenses and Taxes. Within 90 days after the expiration of the
calendar year in which the Closing occurs, Purchaser and Parent or its Affiliate, shall re-prorate operating expenses, insurance reimbursements and real estate tax reimbursements for the calendar year in which the Closing occurs based on the actual,
final numbers and reconcile any adjustments due Seller or Purchaser (as applicable). Purchaser shall invoice the tenants under the Leases and the licensees under the Licenses for amounts owed in respect of such re-proration promptly. Parent or its
Affiliate shall remit or shall cause to be remitted to Purchaser any amount owed by Seller on account of such reconciliation within ten (10) Business Days of Parent’s or its Affiliate’s approval of the re-proration. Purchaser shall
use good faith and commercially reasonable efforts to collect from the tenants and licensees all amounts owed by such tenants and licensees on account of such reconciliation, and shall remit to Parent or its Affiliate any such amounts received by
Purchaser which are attributable to periods prior to Closing within ten (10) Business Days from Purchaser’s receipt thereof. 

8.5.10 Special Assessments. If there are any general or special assessments pending against the Property which are subject to payment
in installments, Seller shall pay any installments of such special assessments that are due and payable prior to the Closing and Purchaser shall pay all installments of such special assessments on or after the Closing and any such payments made by
Seller for the period between the payment occurring immediately before the Closing and the payment due immediately thereafter shall be adjusted between Seller and Purchaser. 

8.5.11 Existing Loans. Purchaser shall assume the Existing Loans from Seller and any and all amounts, fees, costs, obligations, and
liabilities thereunder. Purchaser shall receive a credit at Closing equal to the amount of the Existing Loan assumed by Purchaser (including any accrued and unpaid interest). 

8.5.12 Survival. The provisions of Section 8.5.9 shall survive Closing for a period of twelve (12) months from the Closing
Date. The provisions of Section 8.5.11 shall survive Closing until the full satisfaction and termination of each of the Existing Loans. 

ARTICLE 9 
 DAMAGE AND
CONDEMNATION 
 9.1 Damage. If, prior to the Closing, all or any portion of the Property is damaged by fire or any other
cause whatsoever, Seller shall promptly give Purchaser written notice of such damage. 
 9.1.1 Minor Damage. If the cost for
repairing such damage is equal to or less than One Million Dollars ($1,000,000.00) per damaged Property (as determined by an independent contractor or appraiser retained by Purchaser and reasonably acceptable to Seller with at least 10 years’
experience in the market in which the property is located), then Purchaser shall have the right at Closing to receive a credit for the amount of the deductible plus all 

  
 34 

 
insurance proceeds received by Seller as a result of such loss, or an assignment of Seller’s rights to such insurance proceeds, and this Agreement shall continue in full force and effect
with no reduction in the Purchase Price, and Seller shall have no further liability or obligation to repair such damage or to replace the Property. 

9.1.2 Major Damage. If the cost for repairing such damage is greater than One Million and No/100 Dollars ($1,000,000.00) (as determined
by an independent contractor or appraiser retained by Purchaser and reasonably acceptable to Seller with at least 10 years’ experience in the Market in which the property is located), or if any Tenant terminates its Lease or is permitted to
reduce its rent under such Lease as a result of such damage, then Purchaser shall have the option, exercisable by written notice delivered to Seller and Escrow Agent within ten (10) Business Days after Seller’s notice of damage to
Purchaser (with the Closing Date automatically extended, if necessary, to allow for such response period), either (i) to receive a credit for the amount of the deductible plus all insurance proceeds received by Seller as a result of such loss,
or an assignment of Seller’s rights to such insurance proceeds, and this Agreement shall continue in full force and effect with no reduction in the Purchase Price, and Seller shall have no further liability or obligation to repair such damage
or to replace the Property; or (ii) to terminate this Agreement. If Purchaser elects to terminate this Agreement, the Deposit shall be immediately returned to Purchaser, and thereafter neither party will have any further rights or obligations
hereunder, except for any obligations that expressly survive termination. If Purchaser fails to notify Seller within such ten (10) Business Day period of Purchaser’s intention to terminate this Agreement, then Purchaser shall be deemed to
have elected option (i), and Purchaser and Seller shall proceed to Closing in accordance with the terms and conditions of this Agreement. 

9.2 Condemnation and Eminent Domain. If any condemnation proceedings are instituted, or notice of intent to condemn is given, with
respect to all or any portion of the Property, Seller shall promptly upon obtaining knowledge thereof notify Purchaser thereof (“Taking Notice”). If the condemnation will not result in a material and adverse effect (as hereinafter
defined) on the value or operation of the Property, the parties shall proceed to Closing, in which event Seller shall assign or pay to Purchaser at Closing all of Seller’s right, title, and interest in any award payable on account of the
condemnation and/or pay to Purchaser all such awards previously paid. In the event that such condemnation will result in a material and adverse effect on the Property, Purchaser shall have the option, which shall be exercised by written notice to
Seller and Escrow Agent within ten (10) Business Days after its receipt of the Taking Notice (with the Closing Date automatically extended, if necessary, to allow for such response period), either (i) to terminate this Agreement and
receive the immediate return of the Deposit, in which case the parties shall have no further rights or obligations under this Agreement (except for any obligations that expressly survive termination), or (ii) to consummate the purchase of the
Property without a reduction of the Purchase Price, in which event Seller shall assign or pay to Purchaser at Closing all of Seller’s right, title, and interest in any award payable on account of the condemnation proceeding and/or pay to
Purchaser all such awards previously paid. For the purposes of this Section 9.2, a condemnation shall be deemed to have a “material and adverse effect” only if such condemnation (a) would entitle tenants occupying 10% or more of
the rentable square feet of the Improvements to terminate their leases or reduce their rent, (b) would result in the reduction in the number of parking spaces at the Property, or (c) would result in a permanent or extended (i.e. more than
90 days after Closing), material 

  
 35 

 
disruption of access to the Property or such other disruption that would cause the Property to fail to comply with applicable laws or codes. Failure to give notice of Purchaser’s election
within such ten (10) Business Day period shall be deemed an election by Purchaser to proceed to Closing. It is the express intent of the parties hereto that the provisions of this Agreement govern the rights of the parties in the event of
damage to or condemnation of the Property and that the Uniform Vendor and Purchaser Risk Act (Section 5.007 of the Texas Property Code) do not apply to this Agreement. 

ARTICLE 10 

INDEMNIFICATION 

10.1 Indemnification; Limitation of Liability. If, after the Closing Date, any of the Express Representations should have been false in
any material respect when made or Seller shall be in breach or default of any covenant, representation or warranty under this Agreement or any document executed and delivered by Seller at Closing, and Purchaser shall first become aware of same after
the Closing Date, then Purchaser shall give Seller written notice of such false Express Representation or breach or default prior to the expiration of the Survival Period and Seller shall have fifteen (15) Business Days from the date of receipt
of such notice to cure such breach. If Seller fails to cure such breach within such fifteen (15) Business Day period, and the actual losses or damages sustained as a result of Seller’s false Express Representations or breach or default
exceeds Fifty Thousand and No/100 Dollars ($50,000.00), then Purchaser shall have the right to bring an action against Seller and Guarantor for the actual damages suffered by Purchaser due to such false Express Representation or breach or default.
Notwithstanding anything to the contrary contained herein, the aggregate liability of Seller arising pursuant to or in connection with any claim under this Section 10.1 or Section 5.4 (collectively, the “Contract
Liabilities”) shall not exceed Three Million and No/100 Dollars ($3,000,000.00); provided, however, that in no event shall Seller or Guarantor be liable for any Contract Liabilities unless the aggregate amount of such
liabilities exceeds Fifty Thousand and No/100 Dollars ($50,000.00) (the “Contract Liabilities Floor”), in which event Seller and/or Guarantor shall be liable for the full amount of such Contract Liabilities up to the $3,000,000.00
limitation set forth above; and provided, further, that such liability shall be zero in the event that Purchaser shall have waived, relinquished or released any applicable rights as contemplated by Section 11.1.3.1. No
constituent partner or member in Seller or Guarantor, nor any Person, trust or entity that becomes a constituent partner or member in Seller or Guarantor, nor any partner, member, manager, shareholder, director, officer, employee, beneficiary,
trustee or agent of any of the foregoing, shall have any Personal liability, directly or indirectly, under or in connection with this Agreement or any agreement made or entered into under or pursuant to the provisions of this Agreement, or any
amendment to any of the foregoing made at any time or times, heretofore or hereafter, and Purchaser and its successors and assigns and, without limitation, all other Persons and entities, shall look solely to the assets of Seller for the payment of
any claim or for any performance, and Purchaser, on behalf of itself and its successors and assigns, hereby waives any and all such personal liability. Notwithstanding anything to the contrary in this Agreement, Guarantor’s liability under this
Agreement, including but not limited to this Section 10.1 and Section 5.4 together, shall be limited, in the aggregate, to an amount up to THREE MILLION AND 00/100 DOLLARS ($3,000,000.00). Notwithstanding anything herein, in no event shall
Seller or Guarantor’s liability hereunder be reduced by any payments under the “Dissenting Shareholder Appraisal Rights Side Letter” entered into contemporaneously herewith between Guarantor and Purchaser (the “Side
Letter”) or the Window Replacement Reimbursement described in Section 5.1.10, and the $3,000,000.00 limitation is not affected by such Side Letter or the Window Replacement Reimbursement. 

  
 36 

 ARTICLE 11 

TERMINATION AND WAIVER 

11.1 Termination. This Agreement may be terminated at any time prior to the Closing Date, whether before or after receipt of the Parent
Stockholder Approval (except as otherwise expressly noted) by action taken or authorized by the Purchaser Board or the Parent Board, as follows: 

11.1.1 by either Purchaser or Seller, upon notice to the other party, if: 

11.1.1.1 any Governmental Authority of competent jurisdiction shall have issued an order permanently restraining,
enjoining or otherwise prohibiting the transactions contemplated by this Agreement, and such order or other action shall have become final and non-appealable; or 

11.1.1.2 the Parent Stockholder Approval shall not have been obtained at a duly held Parent Stockholder Meeting
(including any adjournment or postponement thereof) at which the transactions contemplated by this Agreement have been voted upon, provided that the right to terminate this Agreement under this Section 11.1.1.2 shall not be
available to a party if the failure to obtain such Parent Stockholder Approval was primarily due to an action or the failure to act of such party that constitutes a material breach of any of its obligations under this Agreement; or 

11.1.2 by Seller, upon written notice to Purchaser: 

11.1.2.1 if Purchaser shall have failed to perform in any material respect any of the covenants, agreements and
indemnities contained herein to be performed by Purchaser within the time for performance as specified herein (including Purchaser’s obligation to close), and Seller has notified Purchaser in writing of the same and Purchaser has failed to cure
such condition or circumstance or non-performance within ten (10) days of receipt of such notice; provided, however, that the Seller shall not have the right to terminate this Agreement pursuant to this
Section 11.1.2.1 if Seller is then in breach of any of its representations, warranties, covenants or agreements set forth in this Agreement such that the conditions set forth in Section 7.1 would not be satisfied; or 

11.1.2.2 if at any time prior to the receipt of the Parent Stockholder Approval, Seller and/or Parent enters into an
Alternative Acquisition Agreement with respect to a Superior Proposal in accordance with Section 6.7.4; provided, however, that this Agreement may not be so terminated unless the payment required by
Section 11.3.1 is made in full to Purchaser concurrently with the occurrence of such termination and the entry into such Alternative Acquisition Agreement with respect to such Superior Proposal, and in the event that such Alternative
Acquisition Agreement is not substantially concurrently entered into and such payment is not concurrently made, such termination shall be null and void; 

  
 37 

 11.1.3 by Purchaser, upon written notice to the Seller, if: 

11.1.3.1 Purchaser is or becomes aware that any of the representations and warranties made by Seller in this Agreement,
or in any document or instrument executed by Seller and delivered to Purchaser in connection with this Agreement or the Closing hereunder, including the representations made in Section 5.1 hereof, are not true and correct in any
material respect that would adversely affect Purchaser’s use and enjoyment of the Property, or (y) Purchaser is or becomes aware that there is any material inaccuracy in any, certifications, schedules, covenants or statements prepared and
executed by Seller and delivered to Purchaser, or (z) Seller has failed to perform in any respect any of the covenants, agreements and indemnities contained herein or in any of the aforesaid other documents and instruments to be performed by
him, her or it within the time for performance as specified herein (including Seller’s obligation to close) or therein, after notice from Purchaser to Seller in writing of same, and Seller has failed to cure such condition or circumstance or
non-performance within ten (10) days of receipt of such notice; provided, however, that Purchaser shall not have the right to terminate this Agreement pursuant to this Section 11.1.3.1 if Purchaser is then in breach of
any of its representations, warranties, covenants or agreements set forth in this Agreement such that the conditions set forth in Section 7.2 would not be satisfied; and provided, further, that Purchaser may complete the
purchase of the Property, in which event Purchaser shall waive its right to seek reimbursement from Seller for all of its damages incurred as a result of Seller’s breach or waive any claim for damages (except for reimbursement for costs and
expenses as set forth in this clause) and file an action (the “Specific Performance Action”) for specific performance of this Agreement to compel Seller to close, and Purchaser shall be entitled to reimbursement for all of its costs
and expenses, including reasonable attorneys’ fees, incurred in connection with such Specific Performance Action, if it prevails. Seller expressly waives its right to demand that Purchaser post a bond to proceed with the Specific Performance
Action. 
 11.1.3.2 (A) the Parent Board shall have made an Adverse Recommendation Change (provided that
Purchaser’s right to terminate this Agreement pursuant to this Section 11.1.3.2 as a result of an Adverse Recommendation Change will expire twenty (20) days after the date upon which Purchaser receives notice from the Seller of
such Adverse Recommendation Change), and (B) the Parent Board, after public announcement by any Person of an Acquisition Proposal, fails to recommend against such Acquisition Proposal within fifteen (15) days of being requested to do so by
Purchaser; provided, however, that Purchaser shall not have the right to terminate this Agreement pursuant to this Section 11.1.3.2 if Purchaser shall have materially breached its obligations under this Agreement and such
breach shall not have been fully cured by Purchaser at the time of the Adverse Recommendation Change or at the time of the Parent Board’s failure to recommend against an Acquisition Proposal (as applicable). 

11.2 Effect of Termination. In the event that this Agreement is terminated and the transactions contemplated by this Agreement are
abandoned pursuant to Section 11.1, written notice thereof shall be given to the other party or parties, specifying the provisions hereof pursuant to which such termination is made and describing the basis therefor in reasonable detail,
and subject to compliance with Section 11.3, this Agreement shall forthwith become null and 

  
 38 

 
void and of no further force or effect whatsoever without liability on the part of any party hereto (or any of the other Seller’s entities, the other Purchaser’s or any of the
Seller’s or Purchaser’s respective Representatives), and all rights and obligations of any party hereto shall cease; provided, however, that, notwithstanding anything in the foregoing to the contrary, (a) the
Confidentiality Agreement, Section 5.4, Section 11.2, Section 11.3 and Article 15 and the definitions of all defined terms appearing herein shall survive any termination of this Agreement pursuant to
Section 11.1 and (b) no such termination shall relieve any party hereto of any liability or damages resulting from or arising out of any fraud or willful breach of this Agreement, but subject to Section 11.3.4. If this
Agreement is terminated as provided herein, all filings, applications and other submissions made pursuant to this Agreement, to the extent practicable, shall be withdrawn from the Governmental Authority or other Person to which they were made. 

11.3 Fees and Expenses in Termination. 

11.3.1 If, but only if, the Agreement is terminated: 

11.3.1.1 by either Purchaser or Seller pursuant to Section 11.1.1.2 or by Purchaser pursuant to either
Section 7.3.1 or Section 11.1.3.1 and the Seller (A) receives or has received a bona fide Acquisition Proposal with respect to the Seller and/or Parent, which proposal has been publicly announced prior to the date of the
Parent Stockholder Meeting (with respect to a termination under Section 11.1.1.2 or prior to the termination of this Agreement (with respect to a termination under Section 11.1.3.1 or Section 7.3.1) and
(B) within twelve (12) months of the termination of this Agreement, consummates a transaction regarding, or executes a definitive agreement which is later consummated with respect to, such Acquisition Proposal, then the Seller shall pay,
or cause to be paid, to Purchaser an amount equal to Three Million and No/100 Dollars ($3,000,000.00) (the “Seller Termination Fee”) plus, if not previously paid pursuant to Section 11.3.1.3 below, the cost of
Purchaser’s actual out of pocket expenses in pursuit of the transactions contemplated by this Agreement but not to exceed Two Hundred Twenty-Five Thousand and No/100 Dollars ($225,000.00) (“Expense Amount”), by wire transfer of
same day funds to an account designated by Purchaser, not later than the consummation of such transaction arising from such Acquisition Proposal; provided, however, that for purposes of this Section 11.3.1.1, the references
to “twenty percent (20%)” in the definition of Acquisition Proposal shall be deemed to be references to “fifty percent (50%)”; 

11.3.1.2 by either Purchaser or Seller pursuant to Section 11.1.1.2 because the Parent Stockholder Approval
shall not have been obtained, or by Purchaser pursuant to Section 11.1.3.1 then Seller shall pay, or cause to be paid, to Purchaser the Expense Amount (by wire transfer to an account designated by the Seller) within two (2) Business
Days of such termination; 
 11.3.1.3 by the Seller pursuant to Section 11.1.2.2 then the Seller shall
pay, or cause to be paid, to Purchaser the Seller Termination Fee together with the Expense Amount, by wire transfer of same day funds to an account designated by Purchaser as a condition to the effectiveness of such termination; 

  
 39 

 11.3.1.4 by Purchaser pursuant to Section 11.1.3.2, then
Seller shall pay, or cause to be paid, to Purchaser the Seller Termination Fee (together with the Expense Amount), by wire transfer of same day funds to an account designated by Purchaser, within two (2) Business Days of such termination. 

11.3.2 If this Agreement is terminated by the Seller pursuant to Section 11.1.2.1, then Escrow Agent shall release to
Seller an amount equal to the Deposit (the “Purchaser Termination Fee”) by wire transfer of same day funds to one or more accounts designated by Seller within two (2) Business Days of such termination. The Purchaser Termination
Fee shall be paid to Seller as liquidated damages, which shall be Seller’s sole and exclusive remedy against Purchaser for Purchaser’s failure to purchase the Property. Seller acknowledges and agrees that (1) the amount of the
liquidated damages is a reasonable estimate of and bears a reasonable relationship to the damages that would be suffered and costs incurred by Seller as a result of having withdrawn the Property from sale and the failure of closing to have occurred
due to a default of Purchaser under this Agreement; (2) the actual damages suffered and costs incurred by Seller as a result of such withdrawal and failure to close due to a default of Purchaser under this Agreement would be extremely difficult
and impractical to determine; (3) Purchaser seeks to limit its liability under this Agreement to the amount of the Deposit in the event this Agreement is terminated and the transaction contemplated by this Agreement does not close due to a
default of Purchaser under this Agreement; and (4) the above amount shall be and constitute reasonable and valid liquidated damages. Nothing in this Agreement shall be deemed to limit Purchaser’s liability to Seller (a) with respect
to any indemnification or other provision of this Agreement that survives the Closing or termination of this Agreement, and Seller shall retain all rights and remedies, at law or in equity, with respect to those provisions, and (b) in the event
that, following any termination of this Agreement, Purchaser or any party affiliated with Purchaser asserts any claims or rights to the Property that might delay or prevent seller from having clear, indefeasible and marketable title to the Property.

 11.3.3 Notwithstanding anything to the contrary set forth in this Agreement, the parties agree that under no circumstance shall
any party be required to pay the Seller Termination Fee, the Purchaser Termination Fee, or the Expense Amount, as applicable, on more than one occasion. 

11.3.4 Notwithstanding anything to the contrary set forth in this Agreement, the parties agree that neither Seller nor Purchaser shall
be required to pay any amount in excess of the Seller Termination Fee, the Purchaser Termination Fee or the Expense Amount, as applicable, except as set forth in Section 11.3.5 or in the case of such party’s fraud or willful breach
of this Agreement. 
 11.3.5 Each of the parties hereto acknowledges that (i) the agreements contained in this
Section 11.3 are an integral part of the transactions contemplated by this Agreement, (ii) none of the Seller Termination Fee, the Purchaser Termination Fee and the Expense Amount is a penalty, but is a reasonable amount that will
compensate Seller or Purchaser, as the case may be, in the circumstances in which such fee is payable for the efforts and resources expended and opportunities foregone while negotiating this Agreement and in reliance on this Agreement and on the
expectation of the consummation of the transactions contemplated by this Agreement, which amount would otherwise be impossible to calculate with precision, and (iii) without these 

  
 40 

 
agreements, the parties would not enter into this Agreement; accordingly, if Seller or Purchaser, as the case may be, fails to timely pay any amount due pursuant to this Section 11.3
and, in order to obtain such payment, either Seller or Purchaser, as the case may be, commences a suit that results in a judgment against the other party for the payment of any amount set forth in this Section 11.3, such paying party
shall pay the other party its costs and Expenses in connection with such suit, together with interest on such amount at the annual rate of the prime rate of KeyBank National Association in effect on the date of payment for the period from the date
such payment was required to be made through the date such payment was actually received, or such lesser rate as is the maximum permitted by applicable law. 

11.3.6 Limitations on Payment. 

11.3.6.1 If one party to this Agreement (the “Fee Payor”) is required to pay another party to
this Agreement (the “Fee Payee”) an Expense Fee, Purchaser Termination Fee, and/or Seller Termination Fee (collectively or individually, a “Fee”), such Fee shall be paid into escrow on the date such payment
is required to be paid by the Fee Payor pursuant to this Agreement by wire transfer of immediately available funds to an escrow account designated in accordance with this Section 11.3.6.1. In the event that the Fee Payor is obligated to
pay the Fee Payee the Fee, the amount payable to the Fee Payee in any tax year of the Fee Payee shall not exceed the lesser of (i) the applicable Fee of the Fee Payee, and (ii) the sum of (A) the maximum amount that can be paid to the
Fee Payee without causing the Fee Payee to fail to meet the requirements of Sections 856(c)(2) and (3) of the Code for the relevant tax year, determined as if the payment of such amount did not constitute income described in Sections 856(c)(2)
or 856(c)(3) of the Code (“Qualifying Income”) and the Fee Payee has income from unknown sources during such year in an amount equal to one percent (1%) of its gross income which is not Qualifying Income (in addition to
any known or anticipated income which is not Qualifying Income), in each case, as determined by the Fee Payee’s independent accountants, plus (B) in the event the Fee Payee receives either (x) a letter from the Fee Payee’s
counsel indicating that the Fee Payee has received a ruling from the IRS as described below in this Section 11.3.6 or (y) an opinion from the Fee Payee’s outside counsel as described below in this Section 11.3.6, an
amount equal to the excess of the applicable Fee, less the total amount paid under clause (A) above. 
 11.3.6.2 To
secure the Fee Payor’s obligation to pay these amounts, the Fee Payor shall deposit into escrow an amount in cash equal to the applicable Fee with an escrow agent selected by the Fee Payor on such terms (subject to this
Section 11.3.6) as shall be mutually agreed upon by the Fee Payor, the Fee Payee and the escrow agent. The payment or deposit into escrow of the applicable Fee pursuant to this Section 11.3.6 shall be made at the time the Fee
Payor is obligated to pay the Fee Payee such amount pursuant to Section 11.3 by wire transfer. The escrow agreement shall provide that the applicable Fee in escrow or any portion thereof shall not be released to the Fee Payee unless the
escrow agent receives any one or combination of the following: (i) a letter from the Fee Payee’s independent accountants indicating the maximum amount that can be paid by the escrow agent to the Fee Payee without causing the Fee Payee to
fail to meet the requirements of Sections 856(c)(2) and (3) of the Code determined as if the payment of such amount did not constitute Qualifying Income and the Fee Payee has 

  
 41 

 
income from unknown sources during such year in an amount equal to one percent (1%) of its gross income which is not Qualifying Income (in addition to any known or anticipated income which
is not Qualifying Income), in which case the escrow agent shall release such amount to the Fee Payee, or (ii) a letter from the Fee Payee’s counsel indicating that (A) the Fee Payee received a ruling from the IRS holding that the
receipt by the Fee Payee of the applicable Fee would either constitute Qualifying Income or would be excluded from gross income within the meaning of Sections 856(c)(2) and (3) of the Code or (B) the Fee Payee’s outside counsel has
rendered a legal opinion to the effect that the receipt by the Fee Payee of the applicable Fee should either constitute Qualifying Income or should be excluded from gross income within the meaning of Sections 856(c)(2) and (3) of the Code, in
which case the escrow agent shall release the remainder of the applicable Fee to the Fee Payee. The Fee Payor agrees to amend this Section 11.3.6 at the reasonable request of the Fee Payee in order to (i) maximize the portion of the
applicable Fee that may be distributed to the Fee Payee hereunder without causing the Fee Payee to fail to meet the requirements of Sections 856(c)(2) and (3) of the Code, (ii) improve the Fee Payee’s chances of securing a favorable
ruling described in this Section 11.3.6 or (iii) assist the Fee Payee in obtaining a favorable legal opinion from its outside counsel as described in this Section 11.3.6. Any amount of the applicable Fee that remains
unpaid as of the end of a taxable year shall be paid as soon as possible during the following taxable year, subject to the foregoing limitations of this Section 11.3.6, provided, that the obligation of the Fee Payor to pay the unpaid
portion of the applicable Fee shall terminate on the December 31 following the date which is five (5) years from the date of this Agreement. Any costs and expenses of the escrow agent shall be borne solely by the Fee Payee. 

Any payment due to a party described in Section 11.3.5 shall be subject to the same limitations on payment as set forth in this
Section 11.3.6. 
 11.4 Delivery of Materials. Notwithstanding anything contained in this Agreement to the contrary, if
this Agreement is terminated for any reason whatsoever, then Purchaser shall promptly deliver to Seller or destroy all information related to the Property provided to Purchaser by Seller, including copies thereof in any form whatsoever (including
electronic form), except to the extent under applicable law Purchaser is obligated to retain copies of such Property Information. The obligations of Purchaser under this Section 10.4 shall survive any termination of this Agreement. 

ARTICLE 12 
 BROKERAGE
COMMISSION 
 12.1 No Brokers. Seller represents and warrants to Purchaser that Seller has not contacted or entered into any
agreement with any real estate broker, agent, finder, or similar party in connection with this transaction, and that Seller has not taken any action which would result in any real estate broker’s or finder’s fees or commissions being due
and payable to any party with respect to the transactions contemplated hereby. Purchaser hereby represents and warrants to Seller that Purchaser has not contracted or entered into any agreement with any real estate broker, agent, finder, or similar
party in connection with this transaction and that Purchaser has not taken any action which would result in any real estate brokerage or finder’s fees or commissions being due or payable to any party with respect to the transaction contemplated
hereby. 

  
 42 

 12.2 Independent Advisor. Seller shall be solely responsible for the payment of any fees
or commission due to SunTrust Robinson Humphrey, Inc., as an independent advisor, in accordance with the provisions of a separate agreement between Seller and SunTrust Robinson Humphrey, Inc. 

12.3 Indemnity. Each party hereby indemnifies and agrees to hold the other party harmless from any loss, liability, damage, cost, or
expense (including, without limitation, reasonable attorneys’ fees) paid or incurred by the other party by reason of a breach of the representation and warranty made by such party under this Article 12. Notwithstanding anything to the contrary
contained in this Agreement, the indemnities set forth in this Section 12.2 shall survive the Closing or earlier termination of this Agreement. 

ARTICLE 13 

NOTICES 
 13.1
Written Notice. All notices, demands and requests which may be given or which are required to be given by either party to the other party under this Agreement must be in writing. 

13.2 Method of Transmittal. All notices, demands, requests or other communications required or permitted to be given hereunder must be
sent (i) by United States certified mail, postage fully prepaid, return receipt requested, (ii) by hand delivery, (iii) by Federal Express or a similar internationally recognized overnight courier service, or (iv) by electronic
mail with a confirmation copy delivered by another method set forth in this Section 13.2. All such notices, demands, requests or other communications shall be deemed to have been given for all purposes of this Agreement upon the date of receipt
or refusal, except that whenever under this Agreement a notice is either received on a day which is not a Business Day or is required to be delivered on or before a specific day which is not a Business Day, the day of receipt or required delivery
shall automatically be extended to the next Business Day. 
 13.3 Addresses. The addresses for proper notice under this
Agreement are as follows: 
  

			
	 As to Seller:
	  	Global Income Trust, Inc.
		  	450 S. Orange Avenue, Suite 300
		  	Orlando, Florida 32801
		  	Attn: Erin M. Gray, Esquire
		  	Email: erin.gray@cnl.com
		
	 With a copy to:
	  	Global Income Trust, Inc.
		  	450 S. Orange Avenue, Suite 1400
		  	Orlando, Florida 32801
		  	Attn: Scott Hall
		  	Email: scott.hall@cnl.com

  
 43 

			
		
	 As to Guarantor:
	  	CNL Holdings, LLC
		  	450 S. Orange Avenue, Suite 300
		  	Orlando, Florida 32801
		  	Attn: Chief Financial Officer
		
	 With a copy to:
	  	CNL Holdings, LLC
		  	450 S. Orange Avenue, Suite 300
		  	Orlando, Florida 32801
		  	Attn: Chief Legal Officer
		
	 and a copy to:
	  	Lowndes, Drosdick, Doster, Kantor & Reed, P.A.
		  	450 S. Orange Avenue, Suite 200
		  	Orlando, Florida 32801
		  	Attn: Joaquin E. Martinez, Esquire
		  	Email: quino.martinez@lowndes-law.com
		
	 As to Purchaser:
	  	c/o Griffin Capital Corporation
		  	Griffin Capital Plaza
		  	1520 East Grand Avenue
		  	El Segundo, California 90245
		  	Attention: Michael Escalante
		  	Email: mescalante@griffincapital.com
		
		  	c/o Griffin Capital Corporation
		  	Griffin Capital Plaza
		  	1520 East Grand Avenue
		  	El Segundo, California 90245
		  	Attention: Louis Sohn
		  	Email: lsohn@griffincapital.com
		
	 With a copy to:
	  	Griffin Capital Corporation
		  	790 Estate Drive
		  	Suite 180
		  	Deerfield, Illinois 60015
		  	Attention: Mary Higgins, Esq.
		  	Email: mhiggins@griffincapital.com
		
	 And with a copy to:
	  	Dan McCawley, Esq.
		  	Greenberg Traurig, P.A.
		  	401 E. Las Olas Boulevard
		  	Suite 2000
		  	Fort Lauderdale, Florida 33301
		  	Email: mccawleyd@gtlaw.com

  
 44 

			
		
	 As to Escrow Agent:
	  	Chicago Title Company
		  	725 South Figueroa Street, Suite 200
		  	Los Angeles, California 90017
		  	Attention: Amy Hiraheta
		  	Email: Amy.hiraheta@ctt.com

 Either party may from time to time by written notice to the other party designate a different address or
addresses for notices. Notices sent to or from an address outside of the continental United States shall be sent only by one of the methods specified in clauses (ii), (iii) or (iv) of this Section 13.3. Notices given on behalf of a
party by its attorneys in the manner provided for in this Article 13 shall be considered validly given. 
 ARTICLE 14 

ASSIGNMENT 
 14.1
Assignment. Purchaser shall not be entitled to assign its rights in, to and under this Agreement without the prior written consent of Seller, which consent shall not be unreasonably withheld. Notwithstanding the foregoing, Purchaser shall be
entitled to assign its rights in, to and under this Agreement to Griffin REIT I or an entity wholly owned by Griffin REIT I ; in each case without the prior written consent of Seller; provided however (a) no such assignment shall be effective
or binding on Seller until notice thereof has been delivered to Seller, (b) the assignee executes and delivers an assignment and assumption agreement in which such assignee assumes all of Purchaser’s rights, duties and obligations under
this Agreement, and (c) such assignment will not release Purchaser from its primary obligation for the payment and performance of all obligations of the Purchaser under this Agreement. Purchaser may elect to assign its rights to Griffin REIT I
and/or an entity wholly owned by Griffin REIT I in whole or in part such that Purchaser takes title to each Premises in separate entities. “Affiliate” shall mean with respect to any Person, (i) each Person that, directly or
indirectly, owns or controls, whether beneficially, or as a trustee, guardian or other fiduciary, 10% or more of the stock having ordinary voting power in the election of directors of such Person or partnership or membership interests,
(ii) each Person that controls, is controlled by or is under common control with such Person or any Affiliate of such Person or (iii) each of such Person’s officers, directors, joint venturers and partners. The term
“Person” or “Person” shall mean shall mean any individual, sole proprietorship, partnership, joint venture, limited liability company, trust, unincorporated organization, association, corporation, institution,
public benefit corporation, entity or government (whether federal, state, county, city, municipal or otherwise, including, without limitation, any instrumentality, division, agency, body or department thereof) and “control” of a Person
shall mean the possession, directly or indirectly, of the power to direct or cause the direction of its management or policies, whether through the ownership of voting securities, by contract or otherwise. 

ARTICLE 15 

MISCELLANEOUS 

15.1 Entire Agreement. This Agreement embodies the entire agreement between the parties and cannot be varied except by the written
agreement of the parties and supersedes all prior agreements and undertakings. 

  
 45 

 15.2 Modifications. This Agreement may not be modified except by the written agreement of
the parties. 
 15.3 Gender and Number. Words of any gender used in this Agreement will be construed to include any other gender and
words in the singular number will be construed to include the plural, and vice versa, unless the context requires otherwise. 

15.4 Captions. The captions used in connection with the Articles, Sections and Subsections of this Agreement are for convenience only
and will not be deemed to expand or limit the meaning of the language of this Agreement. 
 15.5 Successors and Assigns. This
Agreement will be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns. 
 15.6
Controlling Law; Submission to Jurisdiction. This Agreement will be construed under, governed by and enforced in accordance with the laws of the State of Maryland (without reference to conflicts of laws principles). Any claim, action, suit, or
proceeding seeking to enforce any provision of, or based on any matter arising out of or in connection with, this Agreement or the transactions contemplated hereby shall be brought only in the courts of the State of Maryland or the jurisdiction of
the United States District Court for the State of Maryland, and each of the parties hereto hereby consents to the jurisdiction of such court (and of the appropriate appellate courts therefrom in any such claim, action, suit, or proceeding) and
irrevocably waives, to the fullest extent permitted by applicable law, any objection that it may now or hereafter have to the laying of venue of any such claim, action, suit, or proceeding in any such court or that any such claim, action, suit, or
proceeding that is brought in any such court has been brought in an inconvenient forum. Subject to applicable law, process in any such claim, action, suit, or proceeding may be served on any party anywhere in the world, whether within or without the
jurisdiction of any such court, and such service shall be made by Personal service made on such party or by mail sent to such party at the address set forth in this Agreement. Personal service may be made on such party’s resident agent.

 15.7 Exhibits. All exhibits, attachments, schedules annexed instruments and addenda referred to herein will be considered a
part hereof for all purposes with the same force and effect as if set forth verbatim herein. 
 15.8 No Rule of Construction.
Seller and Purchaser have each been represented by counsel in the negotiations and preparation of this Agreement; therefore, this Agreement will be deemed to be drafted by both Seller and Purchaser, and no rule of construction will be invoked
respecting the authorship of this Agreement. 
 15.9 Severability. In the event that any one or more of the provisions
contained in this Agreement (except the provisions relating to Seller’s obligations to convey the Property and Purchaser’s obligation to pay the Purchase Price, the invalidity of either of which shall cause this Agreement to be null and
void) are held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability will not affect any other provisions hereof, and this Agreement shall be construed as if such invalid, illegal, or unenforceable
provision had not been contained herein; provided, however, that the parties hereto shall endeavor in good faith to rewrite the affected provision to make it (i) valid, and (ii) consistent with the intent of the original
provision. 

  
 46 

 15.10 Tax-Deferred Exchange. Either Seller or Purchaser may sell or acquire the Property
as part of a tax-deferred exchange of real estate pursuant to the provisions of Section 1031 of the Internal Revenue Code as amended from time to time. Either party shall be entitled to use a third-party intermediary as part of the tax-deferred
exchange, and the parties shall reasonably cooperate with each other to accomplish such tax-deferred exchange(s), provided that (a) it is understood and agreed that the party requesting the exchange shall be required to pay all costs and
expenses of the exchange, (b) the non-requesting party shall not be required to make any representation or warranty relative to the condition of any real estate or be required to take title to any real estate other than the Property and
(c) the exchange must otherwise be accomplished without reduction or alteration of the rights of the non-requesting party under this Agreement. 

15.11 Business Days. “Business Day” means any day on which business is generally transacted by banks in New York, New
York. If the final date of any period which is set out in any paragraph of this Agreement falls upon a day which is not a Business Day, then, and in such event, the time of such period will be extended to the next Business Day. 

15.12 No Memorandum. Purchaser and Seller agree not to record this Agreement or any memorandum hereof. 

15.13 Attorneys’ Fees and Costs. In the event either party is required to resort to litigation to enforce its rights under this
Agreement, the prevailing party in such litigation will be entitled to collect from the other party all costs, expenses and reasonable attorneys’ fees incurred in connection with such action. 

15.14 Counterparts and Acceptance of Offer. This Agreement may be executed in multiple counterparts (which counterparts may be executed
by facsimile or PDF) which shall together constitute a single document. However, this Agreement shall not be effective unless and until all counterpart signatures have been obtained. An unsigned draft of this Agreement shall not be considered an
offer by either party. Acceptance, for purposes hereof, shall mean that each party is in physical possession of a fully-signed counterpart copy or original of this Agreement. 

15.15 Waiver of Jury Trial. TO THE EXTENT PERMITTED BY APPLICABLE LAW, EACH PARTY HEREBY WAIVES TRIAL BY JURY IN ANY ACTION,
PROCEEDING, CLAIM OR COUNTERCLAIM BROUGHT BY EITHER PARTY IN CONNECTION WITH ANY MATTER ARISING OUT OF OR IN ANY WAY CONNECTED WITH THIS AGREEMENT, THE RELATIONSHIP OF SELLER AND PURCHASER HEREUNDER, SELLER’S OR PURCHASER’S OWNERSHIP OR
USE OF THE PROPERTY, AND/OR ANY CLAIMS OF INJURY OR DAMAGE RELATED TO THE PROPERTY. 
 15.16 Confidentiality. 

15.16.1 Except as provided otherwise in this Section 15.16, Purchaser and Seller, for the benefit of each other, hereby agree that
neither of them will release, or cause or permit to 

  
 47 

 
be released, to the public any press notices, publicity (oral or written) or advertising promotion relating to, or otherwise publicly announce or disclose, or cause or permit to be publicly
announced or disclosed, in any manner whatsoever, (i) the names of Seller and Purchaser respectively, or any of their Affiliates or subsidiaries, or (ii) the terms, conditions or substance of this Agreement or the transactions contemplated
herein, without first obtaining the consent of the other party hereto. In addition, prior to Closing, both Seller and Purchaser shall keep strictly confidential this Agreement, the transactions contemplated hereby, and the terms and conditions
hereof, and all matters relating thereto, as well as all information relating to the other party. Further, prior to Closing, Purchaser shall keep strictly confidential all information (including the Property Information) relating in any way to the
Property or any portion thereof. 
 15.16.2 It is understood and agreed that the foregoing shall not preclude any party from
discussing the substance or any relevant details of the transactions contemplated in this Agreement, or preclude Purchaser from sharing information relating to the Property, on a confidential basis with such party’s key employees, attorneys,
accountants, professional consultants, advisors, financial advisors, rating agencies, investors, joint venture partners, or potential lenders (“Representatives”), as the case may be. Further, and notwithstanding anything to the
contrary set forth above, Purchaser or any sponsored entity of Purchaser and Seller may disclose any of such information if required in litigation, if any (whether arising out of this Agreement or otherwise) or if required by law (including, without
limitation, any rule or regulation of the Securities and Exchange Commission). 
 15.16.3 Purchaser shall indemnify and hold Seller
and Seller’s Affiliates, employees, officers and directors harmless, and Seller shall indemnify and hold Purchaser and Purchaser’s Affiliates, employees, officers and directors, and its joint venture partners and lenders harmless, from and
against any and all claims, demands, causes of action, losses, damages, liabilities, costs and expenses (including, without limitation, reasonable attorneys’ fees and disbursements) suffered or incurred by the other party and caused by a breach
by Purchaser or Seller, as the case may be, or their respective Representatives, of the provisions of Section 15.16; but this Section 15.16.3 will not entitle either Purchaser or Seller or any other Person or entity, to recover
consequential or incidental damages. 
 15.16.4 In addition to any other remedies available to Seller and Purchaser, Seller and
Purchaser shall each have the right to seek equitable relief, including, without limitation, injunctive relief or specific performance, against the other party or its Representatives in order to enforce the provisions of Section 15.16. 

15.16.5 Notwithstanding any other provision of this Agreement, the provisions of Section 15.16 shall survive the termination of
this Agreement. 
 15.16.6 Time is of the essence of this Agreement. 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 

  
 48 

 IN WITNESS WHEREOF, the parties have executed this Purchase and Sale Agreement as of the date
first written above. 
  

			
	SELLER:
	
	 GIT IMESON PARK FL, LLC,
 a Delaware
limited liability company

		
	By:	 	/s/ Tammy Tipton
	Name:	 	Tammy Tipton
	Title:	 	Executive Vice President
	
	 IN-105 HERITAGE III, LLC,
 a
Delaware limited liability company

		
	By:	 	/s/ Tammy Tipton
	Name:	 	Tammy Tipton
	Title:	 	Executive Vice President
	
	 GIT HERITAGE IV TX, LLC,
 a Delaware
limited liability company

		
	By:	 	/s/ Tammy Tipton
	Name:	 	Tammy Tipton
	Title:	 	Executive Vice President
	
	PARENT:
	
	 GLOBAL INCOME TRUST, INC.,
 a
Maryland corporation

		
	By:	 	/s/ Tammy Tipton
	Name:	 	Tammy Tipton
	Title:	 	CFO and Treasurer
	
	PURCHASER:
	
	 GRIFFIN CAPITAL CORPORATION,
 a
California corporation

		
	By:	 	/s/ Michael J. Escalante
	Name:	 	Michael J. Escalante
	Title:	 	Chief Investment Officer

  
 49 

 JOINDER 

[Omitted as not necessary to an understanding of the Agreement] 

 SCHEDULES AND EXHIBITS 

Schedules 
  

			
	 Schedule 1.4
	    	– Leases and Licenses
	 Schedule 1.5
	    	– Security Deposits
	 Schedule 1.6
	    	– Contracts
	 Schedule 3.1(a)
	    	– Existing Loans
	 Schedule 3.1(b)
	    	– Existing Matters of Record
	 Schedule 3.1(c)
	    	–Title Endorsements
	 Schedule 5.1.10
	    	– Heritage IV Litigation
	 Schedule 5.1.13
	    	– Leasing Commissions
	 Schedule 5.1.23
	    	– Material Warranties
	 Schedule 6.10
	    	–Existing Loans Escrows/Reserves

 Exhibits 
  

			
	 Exhibit A
	  	– Legal Description
	 Exhibit B
	  	– Escrow Agreement
	 Exhibit C-1
	  	– Form of Tenant Estoppel
	 Exhibit C-2
	  	– Form of Subordination, Non-Disturbance and Attornment Agreement
	 Exhibit D-1
	  	– Form of Deed – Texas
	 Exhibit D-2
	  	– Form of Deed – Florida
	 Exhibit E
	  	– Form of Bill of Sale
	 Exhibit F-1
	  	– Form of Assignment and Assumption Agreement for Leases and Licenses
	 Exhibit F-2
	  	– Form of Assignment and Assumption Agreement for Contracts
	 Exhibit G
	  	– Form of Certificate of Non-Foreign Status
	 Exhibit H
	  	– Form of Tenant Notification Letter
	 Exhibit I-1
	  	– Form of Owner’s Affidavit – Texas
	 Exhibit I-2
	  	– Form of Owner’s Affidavit – Florida
	 Exhibit J
	  	– Intentionally Deleted
	 Exhibit K
	  	– Management Agreements
	 Exhibit L
	  	– Environmental Reports and Information
	 Exhibit M
	  	– Taxes and Assessments
	 Exhibit N
	  	– Compliance with Laws and Insurance Requirements
	 Exhibit O
	  	– Rent Roll

 SCHEDULE 1.4 

LEASES AND LICENSES 

[Omitted as not necessary to an understanding of the Agreement] 

SCHEDULE 1.5 

SECURITY DEPOSITS 

[Omitted as not necessary to an understanding of the Agreement] 

SCHEDULE 1.6 

CONTRACTS 
 [Omitted as not
necessary to an understanding of the Agreement] 
 SCHEDULE 3.1(a) 

EXISTING LOANS 
 [Omitted
as not necessary to an understanding of the Agreement] 
 SCHEDULE 3.1(b) 

EXISTING MATTERS OF RECORD 

[Omitted as not necessary to an understanding of the Agreement] 

SCHEDULE 3.1(c) 

TITLE ENDORSEMENTS 

[Omitted as not necessary to an understanding of the Agreement] 

SCHEDULE 5.1.10 

HERITAGE IV LITIGATION 

[Omitted as not necessary to an understanding of the Agreement] 

 SCHEDULE 5.1.13 

LEASING COMMISSIONS 

[Omitted as not necessary to an understanding of the Agreement] 

SCHEDULE 5.1.23 

MATERIAL WARRANTIES 

[Omitted as not necessary to an understanding of the Agreement] 

SCHEDULE 6.10 

EXISTING LOANS ESCROWS/RESERVES 

[Omitted as not necessary to an understanding of the Agreement] 

EXHIBIT A 
 LEGAL
DESCRIPTION 
 [Omitted as not necessary to an understanding of the Agreement] 

EXHIBIT B 

ESCROW AGREEMENT 

[Omitted as not necessary to an understanding of the Agreement] 

EXHIBIT C-1 

FORM OF TENANT ESTOPPELS TENANT ESTOPPEL CERTIFICATE AND AGREEMENT 

[Omitted as not necessary to an understanding of the Agreement] 

EXHIBIT C-2 

SUBORDINATION, NON-DISTURBANCE AND ATTORNMENT AGREEMENT 

[Omitted as not necessary to an understanding of the Agreement] 

 EXHIBIT D-1 

FORM OF DEED – TEXAS 

[Omitted as not necessary to an understanding of the Agreement] 

EXHIBIT A 

DESCRIPTION OF PROPERTY 

[Omitted as not necessary to an understanding of the Agreement] 

EXHIBIT B 

PERMITTED EXCEPTIONS 

[Omitted as not necessary to an understanding of the Agreement] 

EXHIBIT D-2 

FORM OF DEED – FLORIDA 

[Omitted as not necessary to an understanding of the Agreement] 

EXHIBIT “A” 

PROPERTY LEGAL DESCRIPTION 

[Omitted as not necessary to an understanding of the Agreement] 

EXHIBIT E 

FORM OF BILL OF SALE 

[Omitted as not necessary to an understanding of the Agreement] 

EXHIBIT A TO BILL OF SALE 

LEGAL DESCRIPTION 

[Omitted as not necessary to an understanding of the Agreement] 

EXHIBIT F-1 

FORM OF ASSIGNMENT AND ASSUMPTION 

OF LEASES AND LICENSES 

[Omitted as not necessary to an understanding of the Agreement] 

 EXHIBIT A TO ASSIGNMENT AND ASSUMPTION 

OF LEASES AND LICENSES 

LEGAL DESCRIPTION OF THE PROPERTY 

[Omitted as not necessary to an understanding of the Agreement] 

EXHIBIT B TO ASSIGNMENT AND ASSUMPTION 

OF LEASES AND LICENSES 

LEASES AND LICENSES 

[Omitted as not necessary to an understanding of the Agreement] 

EXHIBIT C TO ASSIGNMENT AND ASSUMPTION 

OF LEASES AND LICENSES 

SECURITY DEPOSITS 

[Omitted as not necessary to an understanding of the Agreement] 

EXHIBIT F-2 

FORM OF ASSIGNMENT AND ASSUMPTION OF CONTRACTS AND 

INTANGIBLE PROPERTY 

[Omitted as not necessary to an understanding of the Agreement] 

EXHIBIT A TO ASSIGNMENT AND ASSUMPTION 

OF CONTRACTS AND INTANGIBLE PROPERTY 

LEGAL DESCRIPTION 

[Omitted as not necessary to an understanding of the Agreement] 

EXHIBIT B TO ASSIGNMENT AND ASSUMPTION 

OF CONTRACTS AND INTANGIBLE PROPERTY 

CONTRACTS 
 [Omitted as not
necessary to an understanding of the Agreement] 

 EXHIBIT G 

FORM OF CERTIFICATE OF NON-FOREIGN STATUS 

[Omitted as not necessary to an understanding of the Agreement] 

EXHIBIT H 
 FORM
OF TENANT NOTIFICATION LETTER 
 [Omitted as not necessary to an understanding of the Agreement] 

EXHIBIT I-1 

FORM OF OWNER’S AFFIDAVIT – TEXAS 

AFFIDAVIT AS TO DEBTS, LIENS, 

AND POSSESSION 
 [Omitted as
not necessary to an understanding of the Agreement] 
 EXHIBIT I-2 

FORM OF OWNER’S AFFIDAVIT – FLORIDA 

[Omitted as not necessary to an understanding of the Agreement] 

EXHIBIT J 
 [Omitted
as not necessary to an understanding of the Agreement] 
 EXHIBIT K 

MANAGEMENT AGREEMENTS 

[Omitted as not necessary to an understanding of the Agreement] 

 EXHIBIT L 

ENVIRONMENTAL REPORTS AND INFORMATION 

[Omitted as not necessary to an understanding of the Agreement] 

EXHIBIT M 
 TAXES
AND ASSESSMENTS 
 None. 

EXHIBIT N 

COMPLIANCE WITH LAWS AND INSURANCE REQUIREMENTS 

None. 
 EXHIBIT O

 RENT ROLL 

[Omitted as not necessary to an understanding of the Agreement]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00248-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00248-of-00352.parquet"}]]