Document:

Exhibit

Exhibit 10.1
PURCHASE AND SALE AGREEMENT

THIS PURCHASE AND SALE AGREEMENT (this “Agreement”) is made and entered into as of October 19, 2015 (the “Effective Date”), by and among BROADSTONE NET LEASE ACQUISITIONS, LLC, a New York limited liability company (“Buyer”), and BEF FOODS, INC., a Ohio corporation (“Seller”), BOB EVANS FARMS, INC., a Delaware corporation (“Parent Guarantor”), and BOB EVANS FARMS, LLC, a Ohio limited liability company (“Affiliate Guarantor”; Parent Guarantor and Affiliate Guarantor are at times referred to herein, collectively, as “Lease Guarantor”).
In consideration of the mutual covenants and agreements set forth in this Agreement and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Buyer, Seller and Lease Guarantor hereby enter into this Agreement and covenant and agree as follows:
1.Definitions.
(a)“Affiliate” means any entity directly or indirectly controlling, controlled by or under common control with Seller or Lease Guarantor.
(b)“Affiliate Guaranty” means the lease guaranty to be executed by Affiliate Guarantor in favor of Buyer at Closing, dated as of the Closing Date, and in form and substance as that attached hereto as Exhibit E.
(c)“Agent” means any member, shareholder, equity owner, director, manager, officer, employee, or Affiliate of Seller.
(d)“Association Estoppels” means, individually and collectively, if any and as applicable to a particular Location, the one or more estoppel certificates that may be requested in writing by Buyer to confirm that each Location and Seller is in compliance with any and all obligations, covenants, conditions, assessments, restrictions or regulations created or imposed by any existing declaration of record, business/owner/condominium/industrial park association, developer agreement, mutual, shared or common maintenance, access or driveway agreements, or any other material duties or obligations encumbering such Location or imposed on the owner of such Location (that benefit other parties or lands/areas outside of such Location), and the like, if any.  The form of said estoppel certificate(s) shall be reasonably acceptable to Buyer, Seller and Title Company.
(e)“Bill of Sale and Assignment” means the bill of sale and assignment that shall be delivered by Seller to Buyer at Closing, and sufficient to transfer all of Seller’s right, title and interest in and to the Personal Property and Intangible Property free and clear of all liens, security interests and other encumbrances.
(f)“Building Systems” means the mechanical, electrical, plumbing, sanitary, sprinkler, heating, ventilation and air conditioning, security, life-safety, building management, elevator and other service systems or facilities of the buildings located on each Location.
(g)“Business Day” or “business day” means any day other than a Saturday, Sunday or legal holiday under the laws of the United States or the State of New York.
(h)“Close” or “Closing” means the consummation of the transactions contemplated by this Agreement on or before the Closing Date.
(i)“Closing Date” means October 23, 2015.
(j)“Deed” or “Deeds” means, individually and collectively, as appropriate, the special warranty deeds (or the equivalent instrument under the laws of the jurisdiction where each Location is located), one for each Location, conveying fee simple marketable title to each Location to Buyer, subject only to those Permitted Encumbrances.
(k)“Due Diligence Documents” means copies of: (i) the Existing Title Documents in the possession or control of Seller or any Agent; (ii) the Existing Environmental Reports in the possession or control of Seller or any Agent; (iii) the Existing Leasing and Management Documents; (iv) the Existing Appraisal and Inspection Reports in the possession or control of Seller or any Agent; (v) the Existing Construction Documents in the possession or control of Seller or any Agent; (vi) the Warranties; (vii) the Tax Information in the possession or control of Seller or any Agent; (viii) certificates of insurance evidencing types and amounts of coverage for all existing property and liability insurance policies relating to the Property; and (ix) the Organizational Documents for Seller and Lease Guarantor, together with an organizational chart of Seller, Lease Guarantor, and Affiliates.

(l)“Due Diligence Period” means the period commencing on the Effective Date and expiring at 11:59 p.m. (eastern) on the later of (i) October 2, 2015, or (ii) the date that is ten (10) calendar days after Buyer’s receipt of the last of: (A) the Due Diligence Documents; (B) the Inspection Reports; and (C) the Surveys; provided, however, in no event shall the Due Diligence Period extend beyond the Closing.
(m)“Earnest Money Deposit” means the Initial Deposit and any Additional Deposit (as each term is defined in Section 3 of this Agreement), together with any accrued interest thereon.
(n)“Environmental Assessments” means the ASTM Phase I Environmental Site Assessments that Buyer has ordered for each Location.
(o)“Environmental Law” means all federal, state and local laws, common laws, equitable doctrine, rules, regulations, statutes, codes, ordinances, directives, guidance documents, cleanup or other standards, and any other governmental requirements or standards currently in existence or hereafter enacted or rendered which pertain to, regulate, or impose liability or standards of conduct concerning the use, storage, human exposure to, handling, transportation, release, cleanup or disposal of Hazardous Substances.
(p)“Escrow Agent” means Old Republic National Title Insurance Company, 9900 Covington Cross, Suite 290, Las Vegas, Nevada 89144, Attention: Mr. Paul J. Beever, Vice President and Underwriting Counsel, (702) 242-3141.
(q)“Existing Appraisal and Inspection Reports” means, collectively, all third-party appraisal, zoning, property inspection, property condition and/or engineering reports performed for any Location for the benefit of Seller or any Affiliate.
(r)“Existing Construction Documents” means, collectively, copies of all final plans, drawings, contracts, licenses, permits, certificates (including without limitation certificates of occupancy), licensees, approvals and other similar documentation related to the development, construction, renovation, alteration or improvement of any Location or Seller’s lawful use and occupancy of any Location.
(s)“Existing Environmental Reports” means all environmental, soils or engineering reports, assessments, studies, test results, notices, agreements and other documentation with respect to any Location, including, without limitation, all documentation with respect to any Location’s compliance with or violation of any Environmental Law.
(t)“Existing Leasing and Management Documents” means all existing leasing, licensing and management agreements or other similar agreements, which wholly or partially affect or relate to the possession, use, management, maintenance or operation of any Location, and all other agreements, instruments and documents relating or modifying such leasing, licensing and management agreements.
(u)“Existing Title Documents” means (i) all existing title insurance commitments, policies, searches and examinations relating to any Location; and (ii) all existing surveys, site plans, or other similar maps of any Location, or portion thereof.
(v)“Governmental Authority” means any federal, state, county, city, local, municipal or other governmental, regulatory or administrative agency, governmental commission, department, board, subdivision, court, tribunal, or other governmental arbitrator; arbitral body and all of their respective departments, bureaus, agencies or officers, and any insurance underwriting board or insurance inspection bureau or any other body exercising similar functions.
(w)“Hazardous Substances” means any and all toxic or hazardous substances, chemicals, materials, pollutants or other substances, of any kind or nature, which are regulated, governed, restricted or prohibited by or support a claim under any Environmental Law.
(x)“Inspection Reports” means, collectively, the Environmental Assessments, the Property Condition Assessments, and the Zoning Reports.
(y)“Intangible Property” means, collectively, all of Seller’s right, title and interest in and to (i) all architectural and engineering drawings, work product, records, licenses, permits, plans, approvals and other written authorizations used or useful solely in connection with the Property for the use, operation or ownership of any of the Property, and (ii) all Warranties, to the extent in effect and assignable.
(z)“Lease” means the Master Lease Agreement to be entered into by Seller, as tenant, and Buyer, as landlord, at Closing, dated as of the Closing Date, and in form and substance as that attached hereto as Exhibit B.
(aa)“Lease Terminations” means one or more lease terminations and/or other similar agreement as necessary to terminate all existing leasing agreements with respect to the Property, or any portion thereof, all and each of which shall be dated as of the Closing Date, and in form and substance reasonably acceptable to Buyer.

(ab)“Legal Requirements” means all laws, ordinances, statutes, rules, regulations, orders, directions and requirements of all Governmental Authorities currently in existence or hereafter enacted or rendered and of all other Governmental Authorities applicable to or claimed to be applicable to any portion of the Property or the business activities conducted thereon or therein.
(ac)“Location” means, individually, each of those certain parcels of real property listed on Schedule 1 attached hereto, as each is more particularly described in Exhibit A, together with all buildings, improvements and fixtures located thereon, now or in the future, and all rights, privileges, tenements, easements, licenses, hereditaments and appurtenances belonging or pertaining thereto.
(ad)“Memorandum of Lease” means the Memorandum of Lease to be entered into by Buyer and Seller at Closing, one for each Location, evidencing the existence of the Lease, each of which shall be dated as of the Closing Date, and in form and substance reasonably satisfactory to both Buyer and Seller, but in all events subject to local recording requirements.
(ae)“Monetary Encumbrances” means all mortgages, deeds of trust, mechanics’ liens, security interests, security instruments encumbering any of the Property, judgments and other monetary liens and encumbrances affecting title to or ownership of any of the Property, including, without limitation, liens for delinquent real estate taxes and assessments, but excluding, however, liens for taxes and assessments on the Property not yet due and payable.
(af)“Organization and Authorization Certificate” means the Organization and Authorization Certificate to be executed by Seller and each Lease Guarantor in favor of Buyer at Closing, dated as of the Closing Date, and in form and substance as that attached hereto as Exhibit C subject to reasonable revisions to reflect their respective Organizational Documents.
(ag)“Organizational Documents” means the articles of incorporation, certificate of incorporation, trust agreement, charter, bylaws, articles of formation, certificate of formation, regulations, operating agreement, certificate of limited partnership, partnership agreement and all other similar documents, instruments or certificates executed, adopted, or filed in connection with the creation, formation, or organization of an entity, including any amendments and modifications thereto, together with a complete list of all officers, directors, shareholders, members, and managers (excluding, however, the officers, directors, and shareholders of the Parent Guarantor) of such entity.
(ah)“Parent Guaranty” means the lease guaranty to be executed by Parent Guarantor in favor of Buyer at Closing, dated as of the Closing Date, and in form and substance as that attached hereto as Exhibit D.
(ai)“Permitted Encumbrances” means all of the following: (i) zoning, building and land use laws, ordinances, rules and regulations applicable to the Property; (ii) the lien of taxes and assessments on the Property not yet due and payable; (iii) the rights of Seller, as tenant only, under the Lease; and (iv) all matters enumerated in “Schedule B” of the applicable Title Commitment other than those matters specified in Section 5 that Seller is obligated to Remove at Closing and those Title Objections which Seller has elected in writing to Remove as provided in Section 5.  Except as expressly agreed to in writing by Buyer, all Monetary Encumbrances are excluded from the definition of Permitted Encumbrances.
(aj)“Personal Property” means, collectively, if any, all records and files of Seller relating to the operation, maintenance, improvement and renovation of the Property.
(ak)“Property” means, collectively, (i) those certain parcels of real property located at the addresses listed on Schedule 1 attached hereto, each as more particularly described on Exhibit A, together with all buildings, improvements and fixtures located thereon, now or in the future, and all rights, privileges, tenements, easements, licenses, hereditaments and appurtenances belonging or pertaining thereto; (ii) the Personal Property; and (iii) the Intangible Property.  The Property shall not include Seller’s trade fixtures, machinery, and equipment used in connection with Seller’s business; provided, however, the Property expressly includes all Building Systems.
(al)“Property Condition Assessments” means the Property Condition Assessments/Reports that Buyer intends to order for each Location promptly after the Effective Date or later execution of this Agreement.
(am)“Purchase Price” means Fifty One Million Six Hundred Thousand and 00/100 Dollars ($51,600,000.00).
(an)“Remove” means to release, correct or satisfy or, with Buyer’s prior written consent, cause the Title Company to affirmatively insure over (as applicable).
(ao)“Surveys” means the ALTA or TLTA surveys that Seller has ordered for each Location.
(ap)“Tax Information” means, collectively, copies of: (i) the real estate tax bills for the Property for the current tax year; (ii) the most recent tax assessment for each parcel comprising the Property, any current or 

threatened betterment assessments; (iii) any tax abatement, economic incentive, or “PILOT” agreements; and (iv) complete files on any pending tax appeal proceedings.
(aq)“Title Commitments” means the commitments for title insurance ordered by Buyer and received from Title Company with respect to each Location.
(ar)“Title Company” means Old Republic National Title Insurance Company, 9900 Covington Cross, Suite 290, Las Vegas, Nevada 89144, Attention: Mr. Paul J. Beever, Vice President and Underwriting Counsel, (702) 242-3141.
(as)“Title Objections” shall mean any exceptions to coverage for matters set forth in the Title Commitments, any matters affecting title to the Property, and any matters shown on the Surveys, to which Buyer timely objects in accordance with the terms of Section 5.
(at)“Title Policies” means, collectively, the ALTA or TLTA title insurance policies, with an aggregate coverage amount equal to the Purchase Price, which Title Policies shall reflect that fee title to the Property is vested of record in Buyer, subject only to the Permitted Encumbrances.
(au)“Transfer Taxes” means any and all documentary transfer, stamp, sales, use, excise, privilege or similar tax, fee or charge of any Governmental Authority payable in connection with the delivery of any Deed, the Lease, any Memorandum of Lease, or any other instrument or document provided in or contemplated by this Agreement or the Exhibits hereto together with interest and penalties, if any, thereon, including any sales or similar taxes payable in connection with the transfer of any Personal Property comprising a part of the Property.
(av)“Warranties” means all right, title and interest held by Seller (or any Affiliate) in and to any and all warranties, indemnities and guaranties, if any, related to the renovation, construction, replacement, maintenance or ownership of any Location, including, without limitation, for roof, HVAC and other structural components and systems.
(aw)“Zoning Reports” means the Zoning Reports that Buyer has ordered for each Location.
2.Sale-Leaseback Transaction.  In accordance with and subject to the terms and conditions of this Agreement, the following shall occur contemporaneously at Closing: (a) Seller shall sell and convey to Buyer, and Buyer shall purchase and accept from Seller, the Property; and (b) Buyer shall lease to Seller, and Seller shall accept and take from Buyer, the “Leased Premises,” as defined in the Lease; (c) Parent Guarantor shall guarantee the Lease obligations in accordance with the terms of the Parent Guaranty; and (d) Affiliate Guarantor shall guarantee the Lease obligations in accordance with the terms of the Affiliate Guaranty.
3.Earnest Money Deposit.  Within three (3) business days after the Effective Date, Buyer shall deposit One Million and 00/100 Dollars ($1,000,000.00) with Escrow Agent (the “Initial Deposit”) to be held in escrow pursuant to the terms of this Agreement.  In the event Buyer does not terminate this Agreement by written notice delivered to Seller prior to the expiration of the Due Diligence Period, Buyer shall deposit with Escrow Agent an additional One Million and 00/100 Dollars ($1,000,000.00) (the “Additional Deposit”) within three (3) business days after the expiration of the Due Diligence Period.  All interest and other income from time to time earned on the Earnest Money Deposit shall be earned for the account of Buyer, and shall be a part of the Earnest Money Deposit.  At the Closing, the Earnest Money Deposit shall be paid to Seller and applied as a credit against the cash portion of the Purchase Price.
4.Due Diligence.  Prior to the Effective Date, Seller shall furnish the Due Diligence Documents to Buyer.  In addition, Seller shall deliver any other documents in its possession or control relating to the Property reasonably requested by Buyer within three (3) business days following any such request.  Buyer shall have the right to terminate this Agreement at any time prior to the expiration of the Due Diligence Period, for any or no reason at all, upon written notice to Seller, in which event this Agreement shall be null and void and of no further force and effect (except for rights and obligations that survive a termination of this Agreement pursuant to the express terms of this Agreement) and, notwithstanding anything in this Section 4 of this Agreement to the contrary, Escrow Agent shall immediately return the Earnest Money Deposit to Buyer.  At all times prior to Closing, Buyer and its agents shall, upon reasonable notice, have the right to enter upon the Property, at their own risk and at reasonable times which do not interrupt normal business operations, to inspect the Property and conduct such due diligence investigations as Buyer deems necessary.  Seller agrees to provide access to all parts of the Property and cooperate with such inspections and investigations in any way reasonably requested by Buyer.  Notwithstanding the foregoing, Buyer shall not conduct any invasive testing without the prior written consent of Seller.  Buyer agrees to repair any damage and to indemnify and hold Seller harmless from and against any loss, liability, mechanics’ lien, cost, damage, expense, claim or judgment incurred or suffered by Seller arising out of or related to such investigations of the Property by Buyer; excluding, however, any loss, liability, cost, damage, expense, claim or judgment resulting from any unfavorable test result or the discovery of 

any undesirable existing condition on, in, under or about the Property, such exclusion including, without limitation, any loss resulting from any decrease in the fair market value of all or any portion of the Property or the inability of Seller to market the Property due to any such discovery or unfavorable test result.  Buyer’s agents shall provide proof of insurance reasonably satisfactory to Seller prior to gaining access to inspect the Property.  Any provision of this Agreement to the contrary notwithstanding, the repair and indemnification obligation of Buyer under this Section 4 shall survive Closing and the transfer of title or any earlier termination of this Agreement.
5.Title.
(a)Prior to the expiration of the Due Diligence Period, Buyer will give Seller written notice of any Title Objections.  Seller will then respond to Buyer in writing within three (3) business days after receipt of Buyer’s notice of Title Objections indicating whether Seller elects to Remove the same.  Failure of Seller to notify Buyer in writing within such three (3) business day period shall be deemed an election by Seller on the last day of such period not to Remove such Title Objections.  If Seller elects not to Remove one or more Title Objections, then Buyer may either (i) terminate this Agreement by written notice to Seller, in which event the Title Company shall refund the Earnest Money Deposit to Buyer, and thereafter Seller and Buyer shall not have any further liability hereunder except for obligations which by the express terms of this Agreement survive the termination of this Agreement, or (ii) waive such Title Objections and proceed to Closing.  Failure of Buyer to terminate this Agreement on or before the date that is three (3) business days after Buyer’s receipt of Seller’s response (or expiration of the three (3) business day period in which Seller is permitted to reply pursuant to this Section 5(a)) shall be deemed an election by Buyer to proceed to Closing.  Any such Title Objection so waived by Buyer shall be deemed to constitute a Permitted Encumbrance, and the Closing shall occur as herein provided without any reduction of or credit against the Purchase Price.
(b)Notwithstanding anything in this Agreement to the contrary, Seller shall be obligated to Remove at Closing, to Title Company’s reasonable satisfaction, all Monetary Encumbrances, and Buyer shall not be obligated to object to any Monetary Encumbrances in its Title Objections.  If this Agreement is not terminated by Buyer in accordance with the provisions hereof, Seller shall, at Closing, Remove or cause to be Removed all Monetary Encumbrances and any Title Objections which Seller elected in writing to Remove as provided above.
(c)Notwithstanding anything in this Agreement to the contrary, Buyer reserves the right to review and approve all liens, encumbrances, easements, covenants, conditions, restrictions and reservations affecting title to the Property, whether or not a matter of public record.  If any of the same are first disclosed to or discovered by Buyer after receipt of the Title Commitments, then Seller shall afford Buyer the opportunity to review and object to the same in the time and manner provided by this Section 5.  No title defect may be insured over or removed of record by indemnification or similar arrangement with the Title Company without Buyer’s prior written consent.
(d)At Closing, the Title Company will issue the Title Policies to Buyer insuring that fee simple title to the Property is vested in Buyer subject only to the Permitted Encumbrances.  Buyer shall be entitled to request that the Title Company provide such endorsements to the Title Policies as Buyer may reasonably desire.
6.Representations and Warranties.
(a)Buyer, Seller and Lease Guarantor each represents and warrants to the others that: (i) it is duly organized, validly existing and in good standing under the laws of its jurisdiction of organization or incorporation, and is duly licensed and qualified to transact business in and in good standing as a foreign entity in each jurisdiction wherein the nature of the business transacted by it or the nature of the property owned or leased by it makes such licensing or qualification necessary; (ii) all necessary action has been taken by it to authorize the execution, delivery and performance of this Agreement, and this Agreement is the legal, valid and binding obligation of it, enforceable against it in accordance with its terms, subject to bankruptcy, insolvency and other laws of general application affecting the rights of creditors and subject to the effect of general principles of equity, regardless of whether enforcement is sought in a proceeding at law or in equity; (iii) neither the entering into of this Agreement nor the consummation of the transactions contemplated by this Agreement will constitute or result in a violation or breach of any contract or any other instrument or agreement to which it or its assets may be subject to or bound; (iv) neither the entering into of this Agreement nor the consummation of the transactions contemplated by this Agreement will constitute a violation or breach by it of any judgment, order, writ, injunction or decree issued against or imposed upon it or will result in a violation of any applicable law, order, rule or regulation of any duly constituted Governmental Authority, and (v) no bankruptcy, insolvency, rearrangement or similar action or proceeding, whether voluntary or involuntary, is pending or, to its knowledge, threatened against it, nor has it any intention of filing or commencing any such action or proceeding.
(b)Seller represents and warrants to Buyer that: (i) (A) each Location is owned in fee simple by Seller, (B) except for matters of record listed in the Title Commitments which do not interfere with Seller’s ability to 

operate its business, no party has any lease, license, or other right to use, occupy or possess any Location or any portion thereof, and no adverse or other parties are in possession of any Location, or any portion thereof, and (C) no party has any purchase right, right of first offer, right of first refusal or other right or interest relating to the ownership of any Location, or any portion thereof; (ii) the Personal Property is free and clear of liens, security interests and other encumbrances arising by, through or under Seller; (iii) to its knowledge, each Location, the use of each Location, and all current operations of each Location are in compliance with Legal Requirements in all material respects, and it has not received any written notice to the contrary; (iv) to its knowledge, all material permits, licenses or similar authorizations required to occupy and operate each Location with respect to its current use and in compliance with Legal Requirements have been obtained and are in full force and effect; (v) it has not received a written notice of or has any knowledge of any pending or contemplated condemnation action with respect to any Location or any improvements located thereon, or its means of ingress and egress; (vi) no litigation, action, or proceeding before any Governmental Authority is instituted, pending or, to its knowledge, threatened against or involving any Location or that would prevent or impair Seller from complying with its obligations hereunder or under the Lease or that would question the validity or enforceability of this Agreement or any action taken or to be taken by Seller as part of the transactions contemplated by this Agreement, except as has been expressly listed on Schedule 2 attached hereto; (vii) it is not a “foreign person” as defined in Internal Revenue Code Section 1445 and any related regulations and Buyer will have no duty to collect withholding taxes for it at Closing pursuant to the Foreign Investors Real Property Tax Act of 1980, as amended; (viii) except for title matters recorded in the applicable land records and/or set forth as exceptions in the Title Commitments, no written commitments to or agreements with any third party or Governmental Authority affect any Location which would be binding on Buyer after Closing; (ix) there are no delinquent bills for labor performed or materials furnished to or for the benefit of any Location for the period prior to the date of Closing and there are no mechanic’s liens or materialmen’s liens (whether or not perfected) on or affecting any Location except as has been expressly listed on Schedule 2 attached hereto and/or set forth as exceptions in the Title Commitments; (x) to its knowledge, there are no underground storage tanks at any Location; (xi) except as expressly set forth in the Existing Environmental Reports, no Location is subject to any environmental liens or active remediation and none are pending, or to the knowledge of Seller, threatened; (xii) to its knowledge, except as set forth in the Existing Environmental Reports, there are no Hazardous Substances used, handled, disposed of or otherwise released in, on, under, from or about any Location in violation of Environmental Law; and (xiii) all of the Due Diligence Documents have been delivered to Buyer, none of which have been edited or altered by Seller, and, to Seller’s knowledge, none are inaccurate or misleading in any material respect
(c)The representations and warranties made by one party in favor of another party are made as of the Effective Date and will be deemed to be remade as of the Closing Date and are a requirement of Closing.
(d)No claim for a breach of any representation or warranty made by Seller or Lease Guarantor shall be actionable or payable unless (i) the breach in question results from, or is based on, a condition, state of facts or other matter which was not actually known by Buyer prior to Closing, and (ii) written notice of such claim is sent by Buyer to Seller prior to the expiration of the Survival Period in accordance with Section 13.
(e)(i)    Notwithstanding any contrary provision of this Agreement, if Seller or Lease Guarantor becomes aware between the Effective Date of this Agreement and the Closing Date of any matters that make any of its respective representations or warranties untrue, Seller or Lease Guarantor, as applicable, shall promptly disclose such matters to Buyer in a written notice that specifically references this Section 6(e).  In the event that Seller or Lease Guarantor so discloses any matters that make any of its representations and warranties untrue in any material respect, Buyer shall have the right, in its sole discretion, by written notice to Seller and Lease Guarantor on or before the Closing Date, to: (A) terminate this Agreement, whereupon (x) Escrow Agent shall return the Earnest Money Deposit to Buyer, and (y) except for those provisions of this Agreement which by their express terms survive the termination of this Agreement, no party hereto shall have any other or further rights or obligations under this Agreement; (B) if applicable, exercise any of Buyer’s remedies pursuant to Section 13 below; (C) request that Seller or Lease Guarantor, as applicable, cure such breach as a condition to Closing; provided, however, that Seller or Lease Guarantor, as applicable, shall be under no obligation to cure such breach if it is unable or unwilling to cure such breach on or before the Closing Date; or (D) waive such matters and to consummate the transactions contemplated by this Agreement without reduction of the Purchase Price in accordance with the terms of this Agreement, in which case the applicable representation or warranty shall be deemed updated to include such information and Buyer shall have no further right to terminate this Agreement as a result thereof.  The failure of Buyer to exercise a right provided by the foregoing 

clauses (A) or (B) within five (5) business days of the receipt of the notice provided by Seller or Lease Guarantor, as applicable, shall be deemed an election by Buyer to proceed to Closing.
(ii)    If Buyer elects to request that Seller or Lease Guarantor cure such breach in accordance with subsection (C) above and Seller or Lease Guarantor, as applicable, is unable or unwilling to cure such breach on or before the Closing Date, Buyer shall then have the right, in its sole discretion, by written notice to Seller and Lease Guarantor, to elect to proceed in accordance with subsection (A), (B), or (D) above.
7.Covenants.
(a)Affirmative.  From and including the Effective Date until Closing or the earlier termination of this Agreement, Seller shall: (i) maintain, repair and keep the Property in good condition and repair in the ordinary course and in compliance with all Legal Requirements and matters of record; (ii) maintain the insurance coverage currently in effect for the Property, or comparable coverage, through the Closing Date; and (iii) give prompt written notice to Buyer upon: (A) receiving any written notices of default or any written notices of lawsuits affecting Seller and/or any part of the Property; (B) receiving any written notices of lawsuits affecting Lease Guarantor which could reasonably be expected to have a material adverse effect on Lease Guarantor’s ability to perform its obligations under the Parent Guaranty or Affiliate Guaranty, as applicable; (C) acquiring knowledge of any casualty or condemnation of any part of the Property, whether actual, pending or threatened; (D) acquiring knowledge of the presence of any Hazardous Substances in violation of any Environmental Law on, in, under or about any part of the Property; (E) receiving written notice from a Governmental Authority of a violation of any Legal Requirements with respect to the condition or use of any part of the Property; (F) acquiring knowledge of the conduct or occurrence of an inspection of any part of the Property by a Governmental Authority; or (G) acquiring knowledge of any fact or circumstance that renders (or is likely to render as of the Closing Date) any of Seller’s or Lease Guarantor’s representations or warranties untrue or inaccurate in any material respect, or any of the conditions of this Agreement unfulfilled.
(b)Negative.  From and including the Effective Date until Closing or the earlier termination of this Agreement, neither Seller nor Lease Guarantor shall do, cause, permit or authorize any of the following, unless, in each case, Buyer’s prior written consent has been obtained: (i) enter into any new lease, contract or agreement affecting or encumbering the Property (or any part thereof); (ii) assign, transfer, convey, hypothecate, create a security interest in or lien upon, grant any easement or right-of-way, or otherwise further encumber any part of the Property or any interest therein or take any other action that would affect the title to any part of the Property as it exists as of the Effective Date; or (iii) amend or otherwise modify the Organizational Documents or structure of Seller or Lease Guarantor in a manner that is adverse to Buyer or the transactions contemplated by this Agreement, the Lease, the Parent Guaranty or Affiliate Guaranty, and provided that a copy of any such amended or modified Organizational Document be provided to Buyer at least five (5) business days prior to the Closing Date, and provided further that no amendment or modifications to the Organizational Documents or structure of Seller or Lease Guarantor shall be made after the date that is five (5) business days prior to the Closing Date.
(c)Publicity.  Buyer, Seller and Lease Guarantor each hereby covenants and agrees that: (i) prior to Closing, none of Seller, Buyer or Lease Guarantor shall issue any press release or public statement with respect to any of the transactions contemplated by this Agreement without the prior consent of the others, except to the extent required by Legal Requirements, and (ii) after the Closing, any such press release or public statement issued by Buyer, Seller or Lease Guarantor shall be subject to the review and approval of the other parties (which approval shall not be unreasonably withheld, conditioned or delayed), except to the extent required by Legal Requirements, which obligations under this clause (ii) shall survive the Closing and the transfer of title to the Property.  If Buyer, Seller or Lease Guarantor is required by Legal Requirements to issue a press release or public statement, such party shall, at least three (3) business days prior to the issuance of the same, deliver a copy of the proposed press release or public statement to the other party for its review.
8.Casualty.  Seller agrees to give Buyer prompt notice of any material damage or destruction of any of Location or any portion thereof.  In the event that prior to Closing any part of any Location is destroyed or damaged and the cost to restore the Location exceeds $250,000 (or is less than $250,000 if adequate insurance proceeds are not delivered to Buyer, and Seller does not agree to restore the Location at Seller’s sole cost and expense in accordance with the Lease), Buyer shall have the right, exercisable by giving notice to Seller within ten (10) business days after receiving written notice of such damage or destruction, to either: (a) terminate this Agreement upon written notice, in which event the Earnest Money Deposit shall be returned to Buyer; or (b) accept the subject Location in its then condition and to proceed with the Closing; provided, however, that in the event that Buyer elects to proceed under 

clause (b), then any insurance proceeds related to such damage shall be made available to Seller to repair and restore the affected Location to its condition immediately prior to such damage promptly after Closing in accordance with the Lease, and Seller shall not compromise, settle or adjust any claims to such proceeds without Buyer’s prior written consent.  The provisions of this Section 8 shall survive Closing and the transfer of title.
9.Condemnation.  Seller agrees to give Buyer prompt notice of any taking, condemnation or eminent domain proceeding of any Location or any portion thereof.  In the event that prior to the Closing, all or any portion of any Location is subject to a taking or a condemnation by public authority and the portion subject to a taking or a condemnation would, in Buyer’s good faith opinion, render the Location unusable for Seller’s use thereof or otherwise have a material adverse impact of the value of such Location, as determined by Buyer in good faith, Buyer shall have the right, exercisable by giving notice to Seller within ten (10) business days after receiving written notice of such taking or condemnation, to either: (a) terminate this Agreement upon written notice, in which event the Earnest Money Deposit shall be returned to Buyer; or (b) accept the subject Location in its then condition, without a reduction in the Purchase Price; provided, however, that in the event that Buyer elects to proceed under clause (b), then any condemnation award related to such taking shall be made available to Seller to repair, restore or reconfigure the subject Location to its condition immediately prior to such taking in accordance with the Lease, and Seller shall not compromise, settle or adjust any claims to such award without Buyer’s prior written consent  The provisions of this Section 9 shall survive Closing and the transfer of title.
10.Conditions Precedent to Closing.
(a)Buyer.  Unless waived in writing by Buyer, the obligation of Buyer to Close is subject to the fulfillment of all of the following conditions on or prior to the Closing Date: (i) the respective representations and warranties made by Seller and Lease Guarantor in this Agreement shall be true and correct in all material respects, and all of the terms, provisions, covenants, conditions, agreements and obligations required to be performed by Seller and Lease Guarantor under this Agreement shall have been performed, met or complied with in all material respects; (ii) Seller and Lease Guarantor shall have delivered their respective Closing documents pursuant to Section 11(c) and Section 11(d) of this Agreement; (iii) there shall be no action or proceeding, instituted, pending or threatened in writing against or involving Seller, Lease Guarantor or any Location before any Governmental Authority that could reasonably be expected to have a material adverse impact on Seller’s ability to Close, the value of any Location, Seller’s creditworthiness or ability to perform as tenant under the Lease, or Lease Guarantor’s creditworthiness or ability to perform as guarantor under the Lease Guaranty; (iv) Seller shall have delivered to Buyer copies of all Association Estoppels if any were requested in Buyer’s Title Objections; (v) Seller shall have delivered to Buyer insurance certificates confirming compliance, as of the Closing Date, with the insurance requirements of the Lease; (vi) all real estate taxes and assessments due and owing for each Location must be paid in full; (vii) any existing leases affecting the Property shall be terminated and shall be of no further force and effect; and (viii) Title Company shall be irrevocably committed to issue the Title Policies.  In the event any of the conditions in this Section 10(a) have not been satisfied (or otherwise waived in writing by Buyer) on or prior to the Closing Date, then Buyer shall have the right, in its sole discretion, to either: (A) terminate this Agreement at any time by written notice to Seller, whereupon (x) Escrow Agent shall return the Earnest Money Deposit to Buyer, and (y) except for those provisions of this Agreement which by their express terms survive the termination of this Agreement, no party hereto shall have any other or further rights or obligations under this Agreement; or (B) if applicable, exercise any of Buyer’s remedies pursuant to Section 13 below.
(b)Seller.  Unless waived in writing by Seller, the obligation of Seller and Lease Guarantor to Close is subject to the fulfillment of all of the following conditions on or prior to the Closing Date: (i) the representations and warranties made by Buyer in this Agreement shall be true and correct in all material respects, and all of the terms, provisions, covenants, conditions, agreements and obligations required to be performed by Buyer under this Agreement shall have been performed, met or complied with in all material respects; and (ii) Buyer shall have delivered its Closing documents and balance of the Purchase Price pursuant to Section 11(b) of this Agreement.  In the event any of the conditions in this Section 10(b) have not been satisfied (or otherwise waived in writing by Seller and Lease Guarantor) on or prior to the Closing Date, Seller and Lease Guarantor shall have the right, in their sole discretion, to either: (A) terminate this Agreement at any time by written notice to Buyer, whereupon, except for those provisions of this Agreement which by their express terms survive the termination of this Agreement, no party hereto shall have any other or further rights or obligations under this Agreement; or (B) if applicable, exercise any of Seller’s remedies pursuant to Section 12 below.
11.Closing.

(a)Generally.  Closing shall occur on or before the Closing Date in mail away format (the parties will not be present at Closing) with immediately available funds and closing documents delivered to Escrow Agent, in escrow, on or before the Closing Date.  Escrow Agent shall serve as the closing agent and shall be responsible for preparing the closing statement, the Deeds and customary transfer documents in accordance with and subject to the terms and conditions of this Agreement.
(b)Buyer Closing Documents.  Buyer shall deliver to Escrow Agent on or before the Closing Date: (i) a counterpart of the closing statement executed by Buyer; (ii) duplicate originals of the Lease executed by Buyer; (iii) one original Memorandum of Lease for each Location executed by Buyer; (iv) any other documents, instruments or agreements called for under this Agreement or applicable Legal Requirements, which have not previously been delivered or which are reasonably necessary to Close; and (v) the balance of the Purchase Price and all other funds due and owing from Buyer to Seller, after all applicable credits, adjustments and prorations called for under this Agreement.
(c)Seller Closing Documents.  Seller shall deliver to Escrow Agent on or before the Closing Date: (i) a counterpart of the closing statement executed by Seller; (ii) one original Deed for each Location executed by Seller; (ii) duplicate originals of the Lease executed by Seller; (iii) one original Memorandum of Lease for each Location executed by Seller; (iv) an original Organization and Authorization Certificate executed by Seller; (v) the original Bill of Sale and Assignment; (vi) an original Indemnity Agreement to address certain open matters relating to the Texas Location, in form and substance reasonably satisfactory to Buyer (“Indemnity Agreement”), executed by Seller; (vii) a Title Affidavit in favor of Buyer confirming Seller’s knowledge with respect to certain title matters, in form and substance reasonably satisfactory to Buyer, executed by Seller; and (viii) any other documents, instruments, agreements or curatives called for under this Agreement or applicable Legal Requirements, which have not previously been delivered or which are reasonably necessary to Close, including, without limitation, such  affidavits as the Title Company may reasonably require in order to issue, without additional charge, the Title Policies.
(d)Lease Guarantor Closing Documents.  Lease Guarantor shall deliver to Escrow Agent on or before the Closing Date: (i) a counterpart of the closing statement executed by Lease Guarantor; (ii) an original Parent Guaranty executed by Parent Guarantor; (iii) an original Affiliate Guaranty executed by Affiliate Guarantor; (iv) an original Organization and Authorization Certificate executed by Parent Guarantor; (v) an original Organization and Authorization Certificate executed by Affiliate Guarantor; (vi) an original Indemnity Agreement executed by Parent Guarantor and Affiliate Guarantor; and (vii) any other documents, instruments, agreements or curatives called for under this Agreement or applicable Legal Requirements, which have not previously been delivered or which are reasonably necessary to Close.
(e)Costs.
(i)    Buyer shall be responsible for: (A) the cost to record the Deeds; (B) the actual costs incurred by Fidelity National Title Insurance Company in preparing the existing title commitments; (C) with respect to the Ohio Location, the premiums charged for the Title Policy; (D) one-half of Escrow Agent’s closing fee; and (E) the cost of the Inspection Reports.
(ii)    Seller shall be responsible for (A) any and all Transfer Taxes; (B) the cost to record each Memorandum of Lease; (C) the cost of any charges to Remove all liens, encumbrances and other exceptions to coverage required to be removed by this Agreement including, without limitation, the cost to record applicable curative documents; (D) with respect to the Texas Location, the premiums charged for the Title Policy; (E) one-half of the Escrow Agent's closing fee; and (F) the cost of the Surveys.
(iii)    Buyer and Seller shall pay for their own legal fees.  Any and all other closing costs not specifically addressed in this Section 11(e) shall be paid in accordance with the customs and practices of the jurisdiction where each Location is located, with Seller also being responsible for all such costs customarily paid by tenants in similar transactions.
(f)Prorations and Apportionments.  As Seller will be responsible for the payment of all utilities, taxes, assessments, charges and costs of every kind and nature associated with the operation and use of the Property, as more particularly set forth in the Lease, Buyer and Seller shall not adjust, prorate or apportion any such items at Closing but rather Seller shall continue to be fully responsible for all such items.  Seller shall have no claims against Buyer, and Seller hereby releases Buyer from and agrees to indemnify and hold Buyer 

harmless from all claims and liability with respect to any such adjustments, prorations and apportionments.  The terms and provisions of this Section 11(f) shall survive Closing and the transfer of title.
(g)Rent.  The first partial payment of Base Rent due Buyer under the Lease shall be made by Seller at Closing and shall be prorated to cover the period from and including the Closing Date through and including the last day of the calendar month in which the Closing occurs.  In the event the Closing occurs after the 25th day of the month, Seller shall also pay at Closing the full payment of Base Rent due Buyer under the Lease for the month following the month of Closing.
(h)Application of Proceeds.  If there shall be any Monetary Encumbrances that Seller is obligated to pay and discharge in whole or part at Closing, Title Company may use the net proceeds due Seller at Closing to release and discharge the same, and Seller shall satisfy Title Company’s reasonable requirements with respect to the delivery of documents necessary for Title Company to issue the Title Policies without exception for such Monetary Encumbrances, including, without limitation, payment of the cost of recording or filing said instruments which shall be deducted from the balance of the Purchase Price payable to Seller at Closing.
(i)Possession and Condition.  Seller shall deliver to Buyer full possession and occupancy of all of the Property at Closing free from all claims of occupancy or use of any kind whatsoever, except for Permitted Encumbrances and Seller’s right to occupy and use the same pursuant to the terms of the Lease.  Buyer acknowledges and agrees that the Property is being purchased by Buyer in an “AS IS” and “WHERE IS” condition.  Seller and Lease Guarantor acknowledge and agree that the Property is being leased to Seller in an “AS IS” and “WHERE IS” condition.  Buyer and Seller shall accept the Property at the time of Closing in the same condition as the Property is in as of the Effective Date, as such condition shall have changed by reason of ordinary wear and tear.
(j)Broker’s Fees.  Buyer, Seller and Lease Guarantor each represents and warrants to the others that there are no fees or commissions due as a result of their employment of any broker, except that CBRE (the “Broker”) is acting as Seller’s agent and shall be compensated at Closing by Seller pursuant to a separate written agreement.  Seller and Lease Guarantor shall indemnify and hold Buyer harmless from all claims and expenses of Broker in connection with this Agreement.  Buyer, Seller and Lease Guarantor each agree to indemnify and hold the others harmless for any and all claims and expenses, including legal fees, if any fees or commission is determined to be due by reason of employment of a broker other than the Broker.  The terms of this Section 11(j) shall survive Closing and the transfer of title or the earlier termination of this Agreement.
(k)Tax Deferred Exchange.  Buyer and Seller agree to cooperate with each other in effecting for the benefit of either party a tax deferred exchange pursuant to Section 1031 of the United States Internal Revenue Code and similar provisions of applicable state law; provided that: (i) neither party shall be obligated to delay the Closing; and (ii) neither party shall be obligated to execute any note, contract, deed or other document not otherwise expressly provided for in this Agreement providing for any personal liability, nor shall either party be obligated to take title to any property other than the Property as otherwise contemplated in this Agreement or incur additional expense for the benefit of the other party.  Each party shall indemnify and hold the other harmless against any liability arising or is claimed to have arisen on account of any exchange proceeding which is initiated on behalf of the indemnifying party.  The terms of this Section 11(k) shall survive Closing and the transfer of title.
12.Default by Buyer; Liquidated Damages.  Provided that Seller and Lease Guarantor are both ready, willing and able to Close and also that neither Seller nor Lease Guarantor is in default of this Agreement, then, if any of Buyer’s representations and warranties in this Agreement prove to be untrue at Closing in any material respect, or if Buyer defaults in the performance of its obligations under this Agreement at any time after the expiration of the Due Diligence Period, and Buyer fails to cure such default or breach within ten (10) days after Seller and Lease Guarantor have provided written notice of such default to Buyer, the parties agree that, Seller and Lease Guarantor may elect one and only one of the following as their sole and exclusive remedy: (a) specific performance of this Agreement; or (b) payment of the Earnest Money Deposit.  In the event that Seller and Lease Guarantor elect to be paid the Earnest Money Deposit as their sole and exclusive remedy, the parties agree that (i) the amount of the Earnest Money Deposit is a reasonable sum considering all of the circumstances existing on the date of this Agreement, including the relationship of its amount to the range of harm to Seller and Lease Guarantor that reasonably could be anticipated, and the anticipation that proving actual damage would be costly, impracticable and extremely difficult, and (ii) retention of the Earnest Money Deposit by Seller and Lease Guarantor as liquidated damages is not intended as a forfeiture or penalty, but instead is intended to constitute liquidated damages to Seller and Lease Guarantor.  The election of Seller and Lease Guarantor to receive payment of the Earnest Money Deposit as set forth above shall not prohibit Seller from enforcing its indemnification rights under Section 4 against Buyer.

13.Default by Seller and/or Lease Guarantor.  Prior to Closing, provided that Buyer is ready, willing and able to Close and also that Buyer is not in default of this Agreement, then, if any of Seller’s or Lease Guarantor’s representations and warranties in this Agreement prove to be untrue in any material respect, or if Seller or Lease Guarantor otherwise defaults in the performance of any of their respective obligations under this Agreement and Seller or Lease Guarantor fails to cure such default within ten (10) days after Buyer has provided written notice of such default to Seller, Buyer may elect one and only one of the following as its sole and exclusive remedy: (a) to terminate this Agreement upon written notice delivered to Seller, in which event Escrow Agent shall immediately refund the Earnest Money Deposit to Buyer, and Seller and Lease Guarantor shall reimburse Buyer for (i) all of Buyer’s reasonable out-of-pocket costs and expenses, including, but not limited to, Buyer’s reasonable attorneys’ fees, and (ii) the cost of the Inspection Reports in an amount not to exceed $50,000; or (b) to pursue the specific performance of this Agreement by Seller and Lease Guarantor.  After Closing, if Buyer learns that any of Seller’s or Lease Guarantor’s representations and warranties in this Agreement were untrue in any material respect when made, then Buyer, subject to the limitations set forth in Section 6, shall have the right to pursue any remedies available at law or in equity for a breach of said representations and warranties; provided, however, in order for Buyer to pursue any such remedies, Buyer must send notice to Seller of its intent to do so prior to the expiration of the Survival Period.  The provisions of this Section 13 shall survive Closing and the transfer of title or a termination of this Agreement.
14.Disposition of Earnest Money Deposit.  In the event Escrow Agent is instructed by Buyer to return the Earnest Money Deposit to Buyer, or Escrow Agent otherwise intends to disburse or return all or any portion of the Earnest Money Deposit to Buyer based on Escrow Agent’s interpretation of this Agreement or otherwise, before making any such return or disbursement, Escrow Agent shall notify Seller of Buyer’s demand or Escrow Agent’s intention, and, unless Escrow Agent receives written objection from Seller within five (5) business days thereafter stating that there is a genuine dispute as to who is entitled to the Earnest Money Deposit and describing the basis of Seller’s objection, then Escrow Agent shall return the Earnest Money Deposit to Buyer.  If Escrow Agent receives a written objection from Seller within said 5-business day period, Escrow Agent shall not return or disburse all or any portion of the Earnest Money Deposit to Buyer.  In the event Escrow Agent is instructed by Seller to release the Earnest Money Deposit to Seller, or Escrow Agent otherwise intends to disburse all or any portion of the Earnest Money Deposit to Seller based on Escrow Agent’s interpretation of this Agreement or otherwise, before making any such disbursement, Escrow Agent shall notify Buyer of Seller’s demand or Escrow Agent’s intention, and, unless Escrow Agent receives written objection from Buyer within five (5) business days thereafter stating that there is a genuine dispute as to who is entitled to the Earnest Money Deposit and describing the basis of Buyer’s objection, Escrow Agent shall release and disburse the Earnest Money Deposit to Seller.  If Escrow Agent receives a written objection from Buyer within said 5-business day period, Escrow Agent shall not release or disburse the Earnest Money Deposit to Seller.  Except for the willful misconduct or gross negligence of Escrow Agent or Escrow Agent’s default of its obligations under this Agreement, Escrow Agent shall have no liability to either Buyer or Seller in acting or refraining from acting hereunder.  In the event there is any dispute as to the proper disbursement of the Earnest Money Deposit, Escrow Agent shall be entitled to deposit the Earnest Money Deposit with a court of competent jurisdiction in any county of any Location, and to interplead each of Buyer and Seller in an appropriate interpleader action.  Escrow Agent shall not release, return or disburse the Earnest Money Deposit or any portion thereof, except: (a) in strict compliance with the terms of this Section 14; (b) in accordance with a joint written direction signed by Seller and Buyer; or (c) in obedience to a court order issued by a court of competent jurisdiction.
15.Confidentiality.  Buyer, Seller and Lease Guarantor acknowledge that any and all information that either party has heretofore furnished or hereafter furnishes to any of the others with respect to the Property, the transactions contemplated by this Agreement or other non-public proprietary or confidential information of the parties has been and will be furnished on the condition that the receiving party maintains the confidentiality thereof until Closing.  Accordingly, prior to Closing, Buyer, Seller and Lease Guarantor shall not disclose, and shall prohibit their respective agents, consultants, employees, representatives and any parties identified in clause (i) below (each, a “Receiving Agent”) from disclosing, to any other person or entity without the prior written consent of the non-disclosing party: (a) the material terms of this Agreement; (b) any of the information in respect of the Property, including, but not limited to, the Due Diligence Documents and any information heretofore or hereafter obtained by Buyer or its Receiving Agents, consultants or representatives in connection with Buyer’s due diligence investigations of the Property; and (c) any other non-public proprietary or confidential information of the disclosing party.  In the event the Closing does not occur or this Agreement is terminated, each party shall, upon request from the other, promptly return to the other all documents containing any of such information without retaining any copy thereof or extract therefrom.  

Notwithstanding anything to the contrary hereinabove set forth, either party may disclose such information (i) on a need-to-know basis to the Title Company, to receiving party’s agents, employees, consultants, managers, investors, accountants, attorneys and contractors, to its potential lenders and subsequent purchasers, and to members of professional firms serving it or its potential lenders and (ii) as may be necessary to comply with applicable Legal Requirements or a court order.  Notwithstanding the foregoing, the foregoing confidentiality obligation shall not apply to any such information that (1) is or becomes generally available to the public other than as a result of a breach of this Agreement; (2) is obtained by receiving party or its Receiving Agents on a non-confidential basis from a third-party that, to receiving party’s knowledge, was not legally or contractually restricted from disclosing such information; (3) was in receiving party’s or its Receiving Agents’ possession prior to disclosing party’s disclosure hereunder; or (4) was or is independently developed by receiving party or its Receiving Agents without using any such confidential information.  The terms of this Section 15 shall survive the termination of this Agreement.
16.Attorney Fees.  Except as otherwise provided in this Agreement, in a suit to enforce this Agreement or any provision contained herein, the party prevailing in such suit shall be entitled to recover, in addition to all other remedies or damages allowed pursuant to this Agreement, reasonable attorney fees and court costs incurred in such suit and any appeal thereof.
17.Notices.  Any notice, request, tender, demand, delivery, approval or other communication provided for, required or arising under this Agreement shall be in writing and shall be deemed delivered: (a) if delivered in person, upon delivery to an individual or to an officer of a corporate party; (b) if mailed, three business days following deposit in the United States mail, registered or certified, return receipt requested, postage prepaid, or if delivered via overnight courier with instructions to deliver the next business day, one business day after delivery to such overnight courier, in either case, addressed to the other party or parties at the address or addresses below or at such other address or addresses of which such party may give notice in accordance with the provisions of this Section 17; or (c) if by fax or email, upon receipt of confirmation of the fax or email transmittal, transmitted to the other party or parties at the fax number or email address provided below or such other fax number or email address of which such party may give notice in accordance with the provisions of this Section 17.  Any and all such notices may be given on behalf of either party by its below named attorney.
Buyer:    Broadstone Net Lease Acquisitions, LLC
c/o Broadstone Real Estate, LLC
530 Clinton Square
Rochester, NY 14604
Attn: Mr. Sean Cutt
Fax: 585.760.8378
Email: sean.cutt@broadstone.com
With a copy to:    Tones Vaisey, PLLC
155 Clinton Square
Rochester, NY 14604
Attn: Jeffrey A. Vaisey, Esq.
Fax: 585.486.1772
Email: jvaisey@tonesvaisey.com
Seller &    BEF Foods, Inc.
Lease Guarantor:    8111 Smith’s Mill Road
New Albany, Ohio  43054  
Attn:  Chief Financial Officer
Email:     Mark_Hood@BobEvans.Com
With a copy to:    Bob Evans Farms, Inc.
8111 Smith’s Mill Road
New Albany, Ohio  43054  
Attn:  General Counsel
Email:     Colin_Daly@BobEvans.Com
and

Bass, Berry & Sims PLC
150 Third Avenue South, Suite 2800 
Nashville, Tennessee 37201
Attn:     T. Todd Ervin
Fax:     (615) 248-4147
Email: Tervin@bassberry.com
18.Miscellaneous.
(a)Further Assurances.  Buyer, Seller and Lease Guarantor shall in good faith cooperate with each other in satisfying all conditions contained in this Agreement, including, without limitation, executing or re-executing any and all documents reasonably required to be executed by Seller as record owner of the Property to accomplish any verifications, approvals or determinations.  Buyer, Seller and Lease Guarantor agree that they will, at any time and from time to time after Closing, upon request of the other party, do, execute, acknowledge and deliver, or will cause to be done, executed, acknowledged and delivered, all such further acts, assignments, transfers, conveyances, and assurances as may be reasonably required in order to more fully complete the terms of this Agreement to the extent usual and customary for commercial real estate closings where the Property is located.
(b)Assignment.  No party may assign this Agreement, in whole or in part, without the prior written consent of the other parties.  Notwithstanding anything contained herein to the contrary, upon the expiration of the Due Diligence Period, this Agreement shall automatically be assigned by Buyer to Broadstone BEF Portfolio, LLC, a New York limited liability company to be formed by Buyer, without the need for a separate written assignment.  Notwithstanding the foregoing, Buyer shall not be released and will remain responsible for the performance of all of the assignee’s obligations under this Agreement until Closing.
(c)Survival.  The representations and warranties of the parties contained in this agreement shall survive the Closing and the transfer of title to the Property for a period of twelve (12) months (the “Survival Period”).
(d)Successors and Assigns.  All terms of this Agreement shall be binding upon, and inure to the benefit of and be enforceable by the parties hereto and their respective legal representatives, successors and permitted assigns.
(e)Modifications.  No modification, waiver, amendment, discharge or change of this Agreement, except as otherwise provided herein, shall be valid unless the same is in writing and signed by the party against which the enforcement of such modification, waiver, amendment, discharge or change is sought.  This Agreement contains the entire agreement between the parties relating to the transactions contemplated hereby, and all prior or contemporaneous agreements, understandings, representations and statements, oral or written, are merged herein.  Without limiting the generality of the foregoing, this Agreement alone fully and completely expresses the agreement between the parties and it is specifically understood that no oral representation is binding on Buyer, Seller or Lease Guarantor.
(f)Governing Law and Venue.  This Agreement shall be construed and enforced in accordance with the laws of the State of New York.  Each party hereto consents to the jurisdiction of any court of competent jurisdiction for any action arising out of matters related to this Agreement.  Each of the parties hereto waives the right to commence an action in connection with this Agreement in any court outside of said county.
(g)Interpretation.  The principle that an agreement should be construed against the party drafting the agreement shall not apply to this Agreement as both parties hereto have contributed substantially in the negotiation and drafting of this Agreement.  The captions of this Agreement are inserted for convenience of reference only and do not define, describe or limit the scope or the intent of this Agreement of any term hereof.  All personal pronouns used in this Agreement, whether used in the masculine, feminine, or neuter gender, shall include all other genders.  The singular shall include the plural and vice versa.
(h)Invalid Provision.  If any provision of this Agreement is held to be illegal, invalid, or unenforceable under present or future laws, such provision shall be fully severable and the remaining provisions of this Agreement shall remain in full force.
(i)Time of Essence.  Time is of the essence of this Agreement.  However, if the final date of any time period under or provided by this Agreement falls on a day that is not a business day, then, and in such event, the time of such period shall be extended to the next business day.

(j)Waiver.  Each of the parties hereto reserves the right to waive, in whole or in part, any provision hereof which is for its benefit.
(k)Non-Recording.  Neither this Agreement nor any memorandum or disclosure thereof shall be recorded without the prior written consent of all parties to this Agreement.
(l)Counterparts.  This Agreement may be executed in any number of counterparts, each of which, when taken together and confirmed between the attorneys identified herein, shall constitute but one and the same fully executed instrument.  Signatures on counterparts of this Agreement that are delivered via fax, email or by other electronic means are authorized and shall be acknowledged as if such signatures were an original execution.
(m)Schedules and Exhibits.  The following schedules and exhibits attached hereto are hereby expressly made a part of this Agreement:
(i)    SCHEDULE 1 - List of Locations
(ii)    SCHEDULE 2 - List of Litigation
(iii)    EXHIBIT A - Legal Description
(iv)    EXHIBIT B - Master Lease Agreement
(v)    EXHIBIT C - Organization and Authorization Certificate
(vi)    EXHIBIT D - Parent Guaranty
(vii)    EXHIBIT E - Affiliate Guaranty

[SIGNATURE PAGES FOLLOW]

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written.
		
	BUYER:
	BROADSTONE NET LEASE ACQUISITIONS, LLC, a New York limited liability company

By:    Broadstone Net Lease, LLC,
a New York limited liability company,
its sole member

By:    Broadstone Net Lease, Inc.,
a Maryland corporation,
its managing member

By:    /s/ Christopher J. Czarnecki 

[SELLER & LEASE GUARANTOR SIGNATURE PAGE FOLLOWS]

		
	SELLER:
	BEF FOODS, INC., 

a Ohio corporation

By:    /s/ Mark E. Hood              .

		
	LEASE GUARANTOR:
	BOB EVANS FARMS, INC., 

a Delaware corporation

By:    /s/ Mark E. Hood              .

BOB EVANS FARMS, LLC, 
a Ohio limited liability company

By:    /s/ Mark E. Hood              .

[ESCROW AGENT SIGNATURE PAGE FOLLOWS]

Escrow Agent joins in the execution hereof solely for the purpose of evidencing its agreement to hold, administer and disburse the Earnest Money Deposit pursuant to the terms of the foregoing Agreement.

		
	ESCROW AGENT:
	OLD REPUBLIC NATIONAL TITLE INSURANCE COMPANY

By:    /s/ Heather Zeisloft                 .Exhibit

Exhibit 10.2
LEASE GUARANTY
THIS LEASE GUARANTY (this “Guaranty”) is made and given as of October 23, 2015, by BOB EVANS FARMS, INC., a Delaware corporation (“Guarantor”), in favor of BROADSTONE BEF PORTFOLIO, LLC, a New York limited liability company (“Landlord”).

W I T N E S S E T H

WHEREAS, Landlord desires to purchase those certain parcels of real property located at (i) 651 Commerce Parkway, Lima, OH 45804; and (ii) 1109 Industrial Drive East, Sulphur Springs, TX 75482, together with all buildings, improvements and fixtures located thereon, now or in the future, and all rights, privileges, tenements, easements, licenses, hereditaments and appurtenances belonging or pertaining thereto, each as more particularly described on Exhibit A (collectively, the “Property”), from BEF Foods, Inc., an Ohio corporation (“Tenant”), and, contemporaneously with the closing of the purchase of the Property, lease the Property to Tenant pursuant to that certain Master Lease Agreement (the “Lease”), dated as of even date with this Guaranty, by and between Landlord, as landlord, and Tenant, as tenant, to which reference is made for all of the terms and provisions thereof;

WHEREAS, Landlord is unwilling to purchase the Property or enter into the Lease unless Guarantor executes and delivers to Landlord this Guaranty, and, therefore, Guarantor executes and delivers this Guaranty to Landlord in order to induce Landlord to purchase the Property and to enter into the Lease;

WHEREAS, Guarantor acknowledges that, because of Guarantor’s ownership and control of Tenant, Guarantor will substantially benefit from the sale of the Property to Landlord and Landlord’s leasing of the Property to Tenant.  For this and other valuable consideration, Guarantor hereby assumes the duty to perform the Guaranteed Obligations (hereinafter defined) in accordance with the terms hereof; and

WHEREAS, Guarantor has received a copy of the Lease, has examined the Lease, and is familiar with all of the terms, conditions and provisions contained in the Lease.

NOW, THEREFORE, in consideration of the foregoing and in further consideration of the sum of ten dollars ($10.00) paid to Guarantor, and for other good and valuable consideration, the receipt and sufficiency of which are hereby expressly acknowledged, Guarantor hereby agrees as follows:

1.Guarantor unconditionally guarantees to Landlord the full, faithful and punctual payment of all rental, sums, costs, expenses, charges, payments and deposits (including sums payable as damages upon a default under the Lease) (or any part thereof) which are at any time payable by Tenant under the Lease in accordance with the Lease, and the full, faithful and punctual performance, fulfillment and observance of all of each covenant, condition and obligation of the Lease to be performed, fulfilled or observed by Tenant (collectively, the “Guaranteed Obligations”).
2.This Guaranty is an unconditional, irrevocable and absolute guarantee of payment and performance.  If for any reason any provision of the Lease shall not be faithfully performed or observed by Tenant as required thereby, or if the rental or any other sums, costs, expenses, charges, payments or deposits, or any part thereof, payable under the Lease shall not be paid when due in accordance with the provisions of the Lease, Guarantor will promptly perform or observe, or cause the performance or observance of each such provision, and will immediately pay such rental or other sums, costs, expenses, charges, payments or deposits then due and payable to the Person entitled thereto pursuant to the provisions of the Lease.  Guarantor also agrees to pay to such Person the costs and expenses of collecting any such rental or any other sum, cost, expense, charge, payment or deposit at any time payable by Tenant under the Lease.  Landlord shall have the right to enforce this Guaranty regardless of the receipt by Landlord of additional security or the enforcement of any remedies against such security or the release of such security.
3.Anything in this Guaranty to the contrary notwithstanding, Guarantor shall not take any action, or cause or permit any Person to take any action, and Guarantor hereby irrevocably waives to the extent permitted by applicable law any and all rights that it may otherwise have at law or in equity, to enjoin, interfere with, restrict or limit, in any way whatsoever, any demand or any payment to Landlord under the Lease or this Guaranty.  If Guarantor, 

or any Person on Guarantor’s behalf or at Guarantor’s direction, brings any proceeding or action to enjoin, interfere with, restrict, or limit, in any way whatsoever, anyone or more demands or payments under the Lease or this Guaranty, Guarantor shall be liable for any and all damages resulting therefrom or arising in connection therewith, including, without limitation, reasonable attorney’s fees and costs.
4.Guarantor’s duty to pay and perform the Guaranteed Obligations shall in no way be released, affected or impaired by reason of the happening from time to time of any of the following, whether or not Guarantor has received notice thereof or consented thereto: (a) the waiver by Landlord or its successors or assigns of the performance or observance by Tenant of any provision of the Lease; (b) the extension of the time for payment by Tenant of any rental or any sums, costs, expenses, charges, payments or deposits or any part thereof, owing or payable under the Lease, or of the time for performance by Tenant of any other obligations under or arising out of or on account of the Lease or any extension or renewal thereof; (c) the assignment, subletting or mortgaging or the purported assignment, subletting or mortgaging of all or part of Tenant’s interest in the Lease, whether or not permitted by the Lease; (d) the modification or amendment (whether material or otherwise) of any obligation of Tenant as set forth in the Lease; (e) the taking or the omission of any actions referred to in the Lease; (f) the failure, omission or delay of Landlord to enforce, assert or exercise any right, power or remedy conferred on Landlord in the Lease or by law or any action on the part of Landlord granting indulgence or extension in any form, or for failing to recognize, observe or protect any legal or equitable rights Guarantor may have with respect to Tenant, the Lease or the Property; (g) the failure of any Person to perform any obligation to Landlord; (h) the voluntary or involuntary liquidation, dissolution, sale or other disposition of all or substantially all of the assets, marshaling of assets and liabilities, receivership, insolvency, bankruptcy, assignment for the benefit of creditors, reorganization, arrangement, composition or readjustment of, or other similar proceeding affecting Tenant, Guarantor or any Person or any of their respective assets, or the disaffirmance of the Lease or any other action by a trustee or other Person in any such proceeding; (i) the release of Tenant from performance or observance of any provision of the Lease by operation of law; (j) any disability or other fact or circumstance that might give rise to a legal or equitable defense to Tenant or Guarantor; (k) the receipt and acceptance by Landlord of notes, checks or other instruments for the payment of money made by Tenant, or any extensions or renewals thereof; or (l) the renewal or extension of the term of the Lease.
5.(a)      To  the extent permitted by applicable law, Guarantor hereby expressly waives: (i) notice of acceptance of this Guaranty, protest, demand and dishonor, presentment, and demands of any kind now or hereafter provided for by any statute or rule of law; (ii) notice of any actions taken by Landlord or Tenant under the Lease or any other agreement or instrument relating thereto; (iii) notice of any and all obligations or liabilities contracted or incurred by Tenant and any and all defaults by Tenant in the payment of Base Rent and Additional Rent or other rent, charges or amounts, or of any other defaults by Tenant under the Lease; (iv) all other notices, demands and protests, and all other formalities of every kind in connection with the enforcement of the Guaranteed Obligations, omission of or delay in which, but for the provisions of this Section 5, might constitute grounds for relieving Guarantor of its obligations hereunder; (v) any requirement that Landlord protect, secure, perfect, insure or proceed against any security interest or lien, or any property subject thereto, or exhaust any right or take any action against Tenant or any other person or entity (including any additional guarantor or Guarantor) or against any collateral; and (vi) the benefit of any statute of limitations affecting Guarantor’s liability under this Guaranty.
(b)      Guarantor shall not impose any counterclaim or counterclaims or claims for set-off, recoupment or deduction of Rent in any action brought by Landlord against Guarantor under this Guaranty.  Guarantor shall not be entitled to make, and hereby expressly waives to the extent permitted by applicable law, any and all defenses against any claim asserted by Landlord or in any suit or action instituted by Landlord to enforce this Guaranty or the Lease.  In addition, Guarantor hereby expressly waives to the extent permitted by applicable law, both with respect to the Lease and with respect to this Guaranty, any and all rights which are waived by Tenant under the Lease, in the same manner as if all such waivers were fully restated herein.  The liability of Guarantor under this Guaranty is primary and unconditional.
(c)    Guarantor hereby expressly waives to the extent permitted by applicable law any and all protections or rights afforded to it as a guarantor under the laws of the state of New York, and expressly waives to the extent permitted by applicable law any and all protections or rights afforded to it as a guarantor under the laws of any state where the Property, or any portion thereof, may be located.
(d)    Guarantor hereby expressly waives to the extent permitted by applicable law any and all rights to defenses arising by reason of: (i) any “one-action” or “anti-deficiency” law or any other law that may prevent 

Landlord from bringing any action, including a claim for deficiency, against Guarantor before or after Landlord’s commencement or completion of any action against Tenant; (ii) any election of remedies by Landlord (including, without limitation, any termination of the Lease) that destroys or otherwise adversely affects Guarantor’s subrogation rights or Guarantor’s rights to proceed against Tenant for reimbursement; (iii) any disability, insolvency, bankruptcy, lack of authority or power, death, insanity, minority, dissolution, or other defense of Tenant, of any other guarantor (or Guarantor), or of any other person or entity, or by reason of the cessation of Tenant’s liability from any cause whatsoever, other than full and final payment and performance of the Guaranteed Obligations; (iv) any right to claim discharge of any or all of the Guaranteed Obligations on the basis of unjustified impairment of any collateral for the Guaranteed Obligations; (v) any change in the relationship between Guarantor and Tenant or any termination of such relationship; (vi) any irregularity, defect or unauthorized action by any or all of Landlord, Tenant, any other guarantor (or Guarantor) or surety, or any of their respective officers, directors, managers, partners or other agents in executing and delivering any instrument or agreements relating to the Guaranteed Obligations or in carrying out or attempting to carry out the terms of any such agreements; (vii) any assignment, endorsement or transfer, in whole or in part, of the Guaranteed Obligations, whether made with or without notice to or consent of Guarantor; (viii) the recovery from Tenant or any other Person (including without limitation any other guarantor) becomes barred by any statute of limitations or is otherwise prevented; (ix) the benefits of any and all statutes, laws, rules or regulations which may require the prior or concurrent joinder of any other party to any action on this Guaranty; (x) any release or other reduction of the Guaranteed Obligations arising as a result of the expansion, release, substitution, deletion, addition, or replacement (whether or not in accordance with the terms of the Lease) of the Property; or (xi) any neglect, delay, omission, failure or refusal of Landlord to take or prosecute any action for the collection or enforcement of any of the Guaranteed Obligations or to foreclose or take or prosecute any action in connection with any lien or right of security (including perfection thereof) existing or to exist in connection with, or as security for, any of the Guaranteed Obligations, it being the intention hereof that Guarantor shall remain liable as a principal on the Guaranteed Obligations notwithstanding any act, omission or event that might, but for the provisions hereof, otherwise operate as a legal or equitable discharge of Guarantor. Guarantor hereby waives to the extent permitted by applicable law all defenses of a surety to which it may be entitled by statute or otherwise.
6.No waiver by Landlord of the payment by Guarantor of any of its obligations contained in this Guaranty, nor any extension of time for the payment by Guarantor of any such obligations, shall affect or impair this Guaranty or constitute a waiver or relinquishment of any rights of Landlord hereunder for the future.  No action brought under this Guaranty against Guarantor and on recovery had in pursuance thereof shall be any bar or defense to any further action or recovery which may be brought or had under this Guaranty by reason of any further default of Tenant.
7.Guarantor agrees that Guarantor’s obligations under this Guaranty shall not be released, impaired or affected in any way by: (a) Guarantor’s bankruptcy, reorganization or insolvency under any law, or any action of a trustee in any such proceeding; (b) bankruptcy, reorganization or insolvency under any law of any party, or any action of a trustee in any such proceeding (c) failure of any other party to perform its obligations to Landlord; or (d) any other circumstance that might constitute a legal or equitable defense to Guarantor’s obligations under this Agreement.  Further, Guarantor agrees that, in the event of the rejection or disaffirmance of the Lease by Tenant or Tenant’s trustee in bankruptcy, pursuant to bankruptcy law or any other law affecting creditors’ rights, Guarantor will, if Landlord so requests, assume all obligations and liabilities of Tenant under the Lease, to the same extent as if Guarantor was a party to such document and there had been no such rejection or disaffirmance; and Guarantor will confirm such assumption, in writing, at the request of Landlord upon or after such rejection or disaffirmance.
8.If at any time payment of any of Tenant’s obligations under the Lease is rescinded or must be otherwise restored or returned upon the insolvency, bankruptcy or reorganization of Tenant or any other guarantor of the Lease, the obligations of Guarantor with respect to such payment shall be reinstated at such time as though such payment had not been made.
9.The liability of Guarantor, in accordance with the other provisions of this Guaranty, is coextensive and also joint and several with that of Tenant, and any other guarantor of the Lease, and action may be brought against Guarantor and carried to final judgment either with or without making Tenant or any other guarantor a party thereto.  Guarantor’s obligations hereunder shall not be assigned or delegated.  If more than one Person shall constitute Guarantor hereunder or if the Lease is otherwise guaranteed by more than one Person, then the liability of each such Person shall be joint and several.

10.All of Landlord’s rights and remedies under the Lease and under this Guaranty shall be distinct, separate and cumulative, and no such right or remedy shall be exclusive of or a waiver of any of the others.  Guarantor shall pay to Landlord all of Landlord’s out-of-pocket expenses incurred in enforcing this Guaranty, including, but not limited to reasonable attorneys’ fees.
11.Guarantor has made its own arrangements for keeping informed of changes or potential changes affecting Tenant including Tenant’s financial condition.
12.Without limiting the generality of the foregoing, Guarantor acknowledges and agrees to be bound by the provisions of Section 27 of the Lease with regard to delivery of financial statements and other information required therein.
13.Within ten (10) days after Landlord’s written request, Guarantor shall execute and deliver to Landlord a written statement certifying: (a) the continuing effect and enforceability of this Guaranty, and (b) any other matter concerning this Guaranty or the Lease as Landlord may reasonably request from time to time.
14.(a)    Until all of the Guaranteed Obligations of Guarantor hereunder shall have been performed or satisfied in full, or Landlord has otherwise provided its prior written consent thereto, Guarantor: (i) shall not have a right of subrogation against Tenant by reason of Guarantor’s performance under this Guaranty or monies or obligations owed by Tenant to Guarantor; (ii) waives any right to enforce any remedy which Guarantor now has or may hereafter have against Tenant by reason of Guarantor’s performance under this Guaranty; (iii) subordinates any liability or indebtedness of Tenant now or hereafter held by or owed to Guarantor to Tenant’s obligations; (iv) shall pay prior to delinquency every tax, assessment, fee and charge and file each report required by any taxing authority for Guarantor or its assets; (v) shall promptly notify Landlord of any material default of the Lease, or any event or condition that might have a material adverse effect upon Guarantor’s ability to pay and perform the Guaranteed Obligations; (vi) shall, at all times, remain adequately capitalized to honor Guarantor’s obligations hereunder; (vii) shall do such further acts and execute and deliver Landlord all such additional conveyances, certificates, instruments and other assurances as Landlord may from time to time reasonably require to protect, assure or enforce its interests, rights and remedies under this Guaranty; and (viii) shall not, without the prior written consent of Landlord, in each instance, assign (whether directly or indirectly, voluntary or involuntary), in whole or in part, this Guaranty or any obligation hereunder or, through one or more transactions, do, or permit to be done, any Parent Change of Control.  “Parent Change of Control” means: (A) the acquisition by any person or group (within the meaning of Sections 13(d) and 14(d)(2) of the Securities Exchange Act of 1934, as amended (“Exchange Act”)), other than any employee benefit plan (or related trust) sponsored or maintained by Guarantor, of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act), directly or indirectly, of fifty percent (50%) or more of the combined voting power of the then outstanding voting Equity Interests of Guarantor entitled to vote generally in the election of directors of the Guarantor; (B) the consummation of a sale by Guarantor of all or substantially all of Guarantor’s assets; (C) a liquidation, dissolution or winding-up of Guarantor; (D) the consummation of a merger, consolidation or other business combination of Guarantor with or into another entity, or the acquisition by Guarantor of assets or shares or equity interests of another entity, as a result of which the stockholders of Guarantor immediately prior to such merger, consolidation, other business combination or acquisition, do not, immediately thereafter, beneficially own, directly or indirectly, more than fifty percent (50%) of the combined voting power of the then outstanding voting Equity Interests entitled to vote generally in the election of directors of the entity resulting from such merger, consolidation or other business combination of Guarantor; (E) Guarantor shall cease to own beneficially and of record, directly or indirectly, eighty percent (80%) of the Equity Interests of Tenant or Bob Evans Farms, LLC; (F) any reorganization, reverse stock split or recapitalization of Guarantor that would result in a Parent Change of Control as otherwise defined herein; or (G) any transaction or series of related transactions having, directly or indirectly, the same effect as any of the foregoing.  “Equity Interests” means, as applied to any Person, corporate stock and any and all securities, shares, partnership interests (whether general, limited, special or other), limited liability company interests, membership interests, equity interests, participations, rights or other equivalents (however designated and of any character) of corporate stock of such Person or any of the foregoing issued by such Person (whether a corporation, a partnership, a limited liability company or another type of entity) and includes, without limitation, securities convertible into Equity Interests and rights, warrants or options to acquire Equity Interests.
(b)    Notwithstanding anything in Section 14(a) to the contrary, Guarantor shall be permitted to cause, suffer, or permit, without Landlord’s consent, any Parent Change of Control that satisfies all of the terms and conditions set forth in this Section 14(b), all of which must be satisfied on or before the effective date (or earlier closing) of such proposed Parent Change of Control (each a “Permitted Parent Change of Control”):

(i)     (A) No Event of Default has occurred and is continuing both as of the date Guarantor delivers the Parent Change of Control Notice (hereinafter defined) and as of the date such proposed Parent Change of Control becomes effective; (B) no violation or default under this Guaranty has occurred and is continuing both as of the date Guarantor delivers the Parent Change of Control Notice and as of the date such proposed Parent Change of Control becomes effective; (C) the Parent Change of Control would not result in an immediate violation of a material term or condition of this Guaranty or the Lease; (D) if the Parent Change of Control is or relates to a merger or consolidation of Guarantor, then, prior to or simultaneously with its effectiveness, the surviving entity of such merger or consolidation shall assume all of the obligations of Guarantor under this Guaranty, actual, contingent and accrued, in a manner reasonably acceptable to Landlord and otherwise in accordance with the terms and conditions of this Guaranty; (E) if the Parent Change of Control is or relates to a sale or transfer of Guarantor’s assets, then, prior to or simultaneously with its effectiveness, the purchaser or transferee of such assets shall assume all of the obligations of Guarantor under this Guaranty, actual, contingent and accrued, in a manner reasonably acceptable to Landlord and otherwise in accordance with the terms and conditions of this Guaranty; (F) immediately after the Parent Change of Control, and having given effect thereto, Guarantor, if the surviving entity, remains a Credit Entity or another Person that qualifies as a Credit Entity has expressly assumed or guaranteed all of the Guaranteed Obligations, actual, contingent and accrued, in a manner reasonably acceptable to Landlord; and (G) Guarantor has delivered a Parent Change of Control Notice to Landlord not less than thirty (30) days prior to the effective date (or earlier closing) of such Parent Change of Control.
(ii)    Notwithstanding anything herein to the contrary, no Parent Change of Control is permitted hereunder if it involves or would result in any of the following: (A) a Person that is the subject of any bankruptcy, insolvency, rearrangement or similar actions or proceedings, whether voluntary or involuntary, or a party to any actions, suits, or proceedings that would reasonably be expected to have a material adverse impact on Guarantor’s (or other applicable Person’s) status as a Credit Entity; (B) a Person involved in the Parent Change of Control is a Person whose property or interests are subject to being blocked under any of the OFAC Laws and Regulations and/or who is in violation of any of the OFAC Laws and Regulations; (C) a change in the nature of the business conducted at any Location that is reasonably likely to have a materially deleterious effect to the condition or value of any Location or reputation of Landlord; or (D) a Material Impact.
(iii)    Prior to the effectiveness of the Parent Change of Control, any instruments and documents required under this Section 14 shall be executed and delivered by the parties thereto, as applicable, on the date of the Parent Change of Control.  In addition, Guarantor shall, at Guarantor’s sole cost and expense, execute and deliver to Landlord, any other reasonable instruments and documents requested by Landlord in connection with the Parent Change of Control.
(iv)    For the purposes of this Section 14, the following terms shall have the meanings set forth below:
(A)    “Consolidated EBITDA” means, with respect to a Person, as of the end of any fiscal quarter (x) the sum of net income, depreciation, amortization, and, if any, all adjustments deducted in determining net income and reflected in the GAAP to non-GAAP reconciliation of operating income disclosed in such Person’s earnings releases for such periods (provided cash charges shall not exceed $15,000,000 in any trailing eighteen (18) month period), other non-cash charges to net income, interest expense, income and franchise (or similar) Tax expense, minus (y) non-cash credits to net income, in each case of such Person and its Subsidiaries determined and consolidated in accordance with GAAP for the six (6) fiscal quarters then ending; provided, that notwithstanding any provision in the foregoing definition, all non-cash charges (with no dollar limitation) to net income will be added back to net income when accrued, regardless of whether any such non-cash charge is expected to result in any future cash payment but, to the extent any such non-cash charge determined pursuant to the foregoing definition results in any future cash payment (1) in excess of an aggregate amount of $15,000,000 in any trailing eighteen (18) month period (excluding any payment relating to the Wage and Labor Dispute) or (2) in the case of the Wage and Labor Dispute in excess of an aggregate amount of $16,500,000, Consolidated EBITDA will be reduced by the amount of such excess at such future time.

(B)    “Credit Entity” means any Person engaged in a business or activity in which it qualifies under at least one of the following subsections (x) or (y), each as determined in accordance with GAAP immediately after the effectiveness of the proposed Parent Change of Control (giving effect thereto) and on a consolidated basis with such Person’s consolidated Subsidiaries: (x) such Person has maintained at all times during the immediately preceding eighteen-month period (1) a tangible net worth of no less than $300,000,000, (2) a ratio of total debt to Consolidated EBITDA of less than 3.7 to 1.0, and (3) a ratio of total debt to equity of less than 1.5 to 1.0; or (y) the rating assigned to the senior unsecured long term indebtedness of such Person by Standard & Poor’s is “BB” or higher, or a comparable rating by any rating agency reasonably acceptable to Landlord.
(C)    “Parent Change of Control Notice” means a written notice setting forth: (w) the date Guarantor desires the particular Parent Change of Control to be effective and a reasonably detailed description of such proposed Parent Change of Control and the Persons involved, together with supporting documentation reasonably necessary for Landlord to evaluate whether such proposed Parent Change of Control complies with the applicable terms and conditions of the Lease and this Guaranty; (x) the proposed Transfer instruments, and any other documents or agreements relating thereto or required under the Lease or this Guaranty; (y) current financial information with respect to the Credit Entity, including its most recent financial report; and (z) such other documentation and information reasonably necessary to confirm the satisfaction of the conditions precedent and other requirements of this Section 14 with respect thereto, as determined by Landlord in Landlord’s reasonable discretion.  If Guarantor identifies certain information included in the Parent Change of Control Notice to be confidential, then, at Guarantor’s request, Landlord agrees to enter into a separate confidentiality agreement in form and substance reasonably acceptable to Landlord.
(D)    “Wage and Labor Dispute” means those matters raised and subject to the settlement involving the Thorn v. Bob Evans Farms, Inc., Civil Action 2:12-cv-768 (S.D. Ohio) (“Snodgrass Litigation”), Utterback v. Bob Evans Farms, Case No. CV14826909 (Court of Common Pleas of Cuyahoga County, Ohio), Mackin v. Bob Evans Farms, Case No. 2:14-cv-450 (S.D. Ohio) lawsuits; whereby the claims of assistant managers employed by Bob Evans Farms LLC (dba Bob Evans Restaurants) are resolved except individuals formerly employed in the assistant manager position who had received notice of the Snodgrass Litigation and chose not to opt into that lawsuit.
15.Guarantor represents and warrants to Landlord that: (a) Guarantor is a corporation duly formed, validly existing and in good standing under the laws of the jurisdiction in which it was formed; (b) Guarantor has the requisite power and authority to enter into this Guaranty and the signatories hereto are duly authorized to execute this Guaranty and bind Guarantor to the terms and conditions hereof; (c) the execution and delivery of this Guaranty by Guarantor has been duly and validly authorized; (d) the execution and delivery of this Guaranty by Guarantor will not (i) violate any law, government regulation, decree or judgment applicable or relating to Guarantor or any of its assets, (ii) violate any provision of the charter or organization documents of Guarantor, or (iii) violate or constitute a breach under any document, agreement or instrument to which Guarantor or its assets may be subject to or bound; (e) this Guaranty constitutes the legal, valid and binding obligations of Guarantor, enforceable against Guarantor, in accordance with its terms except as may be limited by applicable bankruptcy, insolvency or similar laws affecting creditors’ rights generally and by general equitable principles; (f) there are no actions, suits, proceedings or investigations pending or, to Guarantor’s knowledge, threatened against Guarantor, in law or in equity, before any federal, state or local governmental authority, that could, individually or in the aggregate, reasonably be expected to have a material adverse effect on Guarantor’s ability to pay and perform under the Lease or this Guaranty; (g) no bankruptcy, insolvency, rearrangement or similar action or proceeding, whether voluntary or involuntary, is pending or, to Guarantor’s knowledge, threatened against Guarantor, nor has Guarantor any intention of filing or commencing any such action or proceeding; (h) no consent, approval, license, permit or other authorization of any third-party or any governmental body or office is required for the valid and lawful execution and delivery of this Guaranty, the valid and lawful exercise by Landlord of the remedies available to it under this Guaranty or applicable law or other rights granted to the Landlord in this Guaranty; (i) all information Guarantor has provided to Landlord is accurate and complete in all material respects; and (j) Guarantor has received a copy of the Lease, has examined the Lease, and is familiar with all of the terms, conditions and provisions contained in the Lease.

16.This Guaranty shall bind Guarantor and its successors, assigns, heirs, legatees, devisees, administrators and executors.  This Guaranty may be freely assigned, transferred or hypothecated by Landlord, in whole or in part, without Guarantor’s written consent unless Tenant’s consent to the transfer of the underlying Lease is required by the terms of the Lease, in which case Guarantor’s consent to the transfer or assignment of this Guaranty shall also be required and shall run in favor and inure to the benefit of Landlord, its successors and assigns, and each subsequent holder of Landlord’s interest under the Lease.  References to the term “Tenant” shall be deemed to include Tenant’s successors and assigns.  All personal pronouns used in this Guaranty, whether used in the masculine, feminine, or neuter gender, shall include all other genders.  No attornment by Tenant in favor of any such mortgagee shall diminish any of Guaranteed Obligations, and following any such attornment, Guarantor’s obligations shall continue in full force and effect as if the mortgagee were the original Landlord pursuant to the Lease.
17.Notices from Landlord to Guarantor shall be in writing, addressed to Guarantor at Bob Evans Farms, Inc., 8111 Smith’s Mill Road, New Albany, Ohio  43054, Attn: General Counsel, and (a) personally delivered; (b) sent by a nationally recognized overnight delivery service (e.g., Federal Express) for next-day delivery, to be confirmed by such courier; or (c) mailed by United States registered or certified mail, return receipt requested, postage prepaid.  Notices, demands and other communications given in the foregoing manner shall be deemed given when actually received or refused by the party to whom sent, unless mailed, in which event same shall be deemed given on the day of actual delivery as shown by the addressee’s registered or certified mail receipt, or at the expiration of the third (3rd) business day after the date of mailing, whichever first occurs.  Guarantor may from time to time change its address for receiving notices under this Guaranty by providing written notice to Landlord in accordance with notice provisions of this Guaranty.  Any and all such notices may be given on behalf of Landlord by its attorneys.
18.This Guaranty shall be governed by and construed in accordance with the laws of the state of New York.  Guarantor agrees to be subject to the jurisdiction of the courts of New York, to accept service of process in any action brought in New York, and Guarantor waives any objection to personal jurisdiction in such action.
19.If any provision of this Guaranty or the application of any provision to any Person or any circumstance shall be determined to be invalid or unenforceable, such determination shall not affect any other provisions of this Guaranty or the application of such provision to any other Person or circumstance, all of which other provisions shall remain in full force and effect.
20.The recitals to this Guaranty are incorporated into this Guaranty for all purposes.  All terms and conditions of the Lease are hereby incorporated by reference.  Capitalized terms used in this Guaranty and not otherwise defined herein shall have the meanings assigned to them in the Lease.
21.The terms of this Guaranty shall not be modified, discharged, waived or terminated except by an agreement in writing signed by Guarantor and Landlord.  Time is of the essence in this Guaranty and each and every provision hereof in which any date or time is specified.
22.This Guaranty may be executed in multiple counterparts, each of which shall be deemed an original for purposes of making proof, and all of which together shall constitute but one and the same instrument.
(SIGNATURE PAGE FOLLOWS)

IN WITNESS WHEREOF, Guarantor has executed this Guaranty as of the day and year first above written.

GUARANTOR:    BOB EVANS FARMS, INC.,
a Delaware corporation

By:    /s/ Mark E. Hood                                          

Name:    Mark E. Hood                                               

Title:    Chief Financial Officer                                 

State of ___________________    )
County of _________________    )

On ____________________, 2015, before me, ____________________________, personally appeared _____________________________, who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he/she executed the same in his/her authorized capacity, and that by his/her signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument.

WITNESS my hand and official seal.

Signature_________________________________ (SEAL)

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