Document:

EX-10.41 Supply Agreement

 

Confidential
treatment has been requested for portions of this document. This copy
of the document filed as an exhibit omits the confidential
information subject to the confidential treatment request. Omissions
are designated by three asterisks (***). A complete version of this
document is being filed separately with the Securities and Exchange
Commission.

EXHIBIT
10.__

Supply Agreement

     SUPPLY AGREEMENT, dated as of December _2_, 2005, between FUJI PHOTO FILM U.S.A.,
INC., a New York corporation (“Fuji”), and PCA LLC, a Delaware Limited Liability Company
(“Customer”).

W
I T N E S S E
T H:

     WHEREAS, Customer desires to purchase quantities of Fujicolor Crystal Archive Color Paper
and Fuji Hunt Chemicals (collectively, the “Products”) from Fuji and Fuji is willing to sell
such quantities of the Products to Customer on the terms and subject to the conditions set
forth in this Agreement.

     NOW, THEREFORE, in consideration of the premises and the mutual promises herein
contained, the parties hereby agree as follows:

     1. Definitions. When used in this Agreement, the following terms will have the
respective meanings set forth in this Article 1 . Definitions used herein are used without
regard to gender, and definitions in the singular shall apply equally when used in the plural.

          (a) “Chemicals” shall have the meaning set forth in the definition of Minimum
Purchase Requirement.

          (b) “Confidential Information” means all information and data of the disclosing party
designated as confidential concerning products or the business of the disclosing party or its
affiliated companies, disclosed to the receiving party orally or in writing. If either party
hereunder discloses information to the other party orally, then within two (2) weeks after
such disclosure the disclosing party will confirm in writing to the receiving party the
confidential nature of the information so disclosed. “Confidential Information” shall not
include any information which the receiving party can establish:

               (i) is now generally known or available to the public or which
hereafter through no act or failure on the part of the receiving party becomes generally known
or available to the public;

               (ii) is
legally known to the receiving party at the time of receiving such
information;

               (iii) is furnished to others by the disclosing party without a restriction on
disclosure;

               (iv) is hereafter furnished to the receiving party in writing by a third party
without restriction on disclosure, where such third party legally obtained such information
and the right to disclose it to the receiving party; or

               (v) is independently developed by the receiving party without violation of
any legal rights which the disclosing party may have in such information.

 

     A party shall be permitted to disclose Confidential Information in the event such
party is required to do so pursuant to a valid judicial or administrative order requiring
disclosure; provided, however, that such party shall notify the other party hereto in writing
promptly after receiving the judicial or administrative order and such party shall will
cooperate and consult with the other party to take steps to avoid disclosure.

          (c) “Minimum Purchase Requirement” means that obligation of Customer to purchase
from Fuji during the Supply Period at least
(***)
and (ii) all chemicals (“Chemicals”) required for processing the Paper.

          (d) “Paper” means Fujicolor Crystal Archive Color Paper.

          (e) “Products” means Paper and Chemicals.

          (f) “Shipment Date” means the date on which Fuji places Product ordered by Customer in
the hands of a carrier for delivery to Customer.

          (g) “Supply Period” means a period of time, which begins on January 1, 2006 and ends on
June 30, 2007.

          (h)
“UCC” means the Uniform Commercial Code, as in force in the State of New York
on the date of this Agreement.

     2. Manufacture and Sale.

     2.1 Fuji’s affiliates will manufacture the Products according to their standard
manufacturing and packaging specifications for the Products in place from time to time. It is
understood that Customer does not require any changes to such standard specifications for the
Products.

     3. Forecasts; Orders; Minimum Purchase Requirement; Marketing.

     3.1 Beginning in December, 2005, Customer shall submit to Fuji a six-month written
forecast of its monthly requirements of the Products on or before the 15th day of
each month. The parties agree that the forecast for the first three calendar-month period set
forth in each monthly statement submitted by Customer to Fuji shall constitute a “firm offer”
within the meaning of Section 2-205 of the UCC for all Products listed for such three
calendar-month period. The forecast for the second three calendar-month period in each
monthly statement submitted by Customer to Fuji shall constitute estimates of Customer’s
requirements of Products for such period. The forecast for the first one-month period set
forth in each monthly statement shall be deemed a purchase order subject to acceptance or
rejection by Fuji. The format for such written forecasts will be mutually agreeable to both
parties.

          (a) Customer will submit purchase orders to Fuji in writing, which may be
transmitted to Fuji by electronic facsimile or by electronic data interchange system.
Customer will submit its purchase orders by the 15th of each month, with a
requested Shipment Date from Fuji’s distribution center in the United States of not less than
thirty (30) days after receipt of such purchase order by Fuji.

2

 

          (b) Whenever the Products ordered by Customer in a month exceed
Customer’s forecast of its requirements for Products in that month, Customer’s
purchase orders will be subject to acceptance by Fuji based on availability;
provided that, in all events, Fuji will be entitled to withhold or delay its
acceptance of Customer’s purchase orders or to refuse to ship Product ordered if
Customer is in default (and any grace or cure period therefor has elapsed) under
this Agreement and such default is continuing.

          (c) Any purchase orders submitted by Customer under this Agreement shall
contain only orders for the Products to be manufactured pursuant to Fuji’s
standard specifications for such Products. It is understood that there will be no
custom or special manufacturing or packaging requirements.

     3.2 Customer shall, during the Supply Period, purchase from Fuji of its
requirements in North America for Paper and Chemicals, except that
from time to
time, Customer may purchase minimum quantities of competitive products, not to
exceed one percent (1%) of Customer’s annual consumable requirements in North
America, for testing and evaluation purposes. Notwithstanding the preceding
sentence, Customer is required to purchase during the Supply Period a sufficient
number of Products from Fuji so as to satisfy the Minimum Purchase Requirement.

     3.3 In the event that Customer does not satisfy the Minimum Purchase
Requirements for any or all Products in the Supply Period, Customer shall pay Fuji
an amount calculated as follows:
(***)
This penalty shall be waived in the event of an early
termination of this Agreement for cause by Customer pursuant to Section 8.2(b) or without cause by
Fuji pursuant to Section 8.2(c).

     3.4 Fuji may, in its sole discretion, permit the quantity of Product to be shipped in an
order to vary up or down by 10% from the quantity set forth in the respective forecast.

     4. Sales Terms; Delivery; Resale.

     4.1 Fuji shall sell, and Customer shall purchase, the Products in accordance with the
provisions of this Agreement and Fuji’s sales terms in effect with respect to the Products at the
time of purchase.

     4.2 Fuji will deliver Products F.O.B. Fuji’s or its agent’s warehouse, to the address
designated by Customer. Surface freight and insurance from Fuji’s or its agent’s warehouse to the
address designated by Customer shall be borne by Fuji provided all shipments are sent via ground
surface carrier selected by Fuji. Products ordered by Customer pursuant to a particular purchase
order shall be completed and made available for delivery or other disposition as specified therein
in approximately thirty (30) days from Fuji’s receipt of such purchase order. It

3

 

is expressly agreed that no estimate of delivery time made by Fuji will constitute a guaranty
of delivery by such date, that all shipping and delivery dates will be approximate, and that Fuji
will not be liable for any damages, consequential or otherwise, for delays in delivery. Fuji shall
in no way be held liable for any portion of Customer’s claim for damages for non-arrival, loss or
any other damage occurred to the Products in transit exceeding the amount actually redeemed by
insurance. Customer shall be responsible for transportation costs associated with air shipment or
any expedited shipments requested by Customer. In the event of a delay in shipment for more than
five (5) days beyond the scheduled delivery date, Customer may purchase substitute product from
another vendor. In such event the purchase of substitute product shall not be counted against
Customer’s 1% limitation but shall be counted in calculating the minimum purchase requirement.

     4.3 Customer is purchasing the Products for its own use and will not resell
any Product to any third party without the written consent of Fuji.

     5. Prices; Payment.

     5.1 Subject to the provisions of this Article 5, the price for each Product shall be as set
forth on Schedule A hereto. All prices shall be dead net and no credits or deductions shall
be allowed on invoices.

     5.2 Prices are exclusive of all federal, state, local, excise, use and similar taxes. All
taxes of any nature which are billed to Customer shall be identified, separately stated and paid by
Customer or, in lieu thereof, Customer shall provide Fuji with a tax-exemption certificate
acceptable to the relevant taxing authorities. Failure by Fuji to invoice any taxes does not
abrogate Customer’s obligation to pay such tax.

     5.3 Payment shall be made by Customer by wire transfer prior to shipment of Products. If
Customer makes a late payment, Fuji shall add a late payment charge to the shipment value. The late
payment charge shall be calculated by multiplying the value of the shipment times the prime rate as
published in the Wall Street Journal on the first business day of the month in which payment is due
times the number of days late divided by 365.

     5.4 On or prior to June 30, 2006, Fuji will review the credit terms provided to Customer, and,
based on such review, may, in its sole discretion, grant more favorable terms.

     6. Disclaimer of Warranty; Indemnification.

     6.1 Fuji makes no warranties or representations concerning the Products to Customer.
FUJI HEREBY DISCLAIMS ALL WARRANTIES REGARDING THE PRODUCTS INCLUDING, BUT NOT LIMITED TO, ALL
EXPRESS WARRANTIES, ALL IMPLIED WARRANTIES AND WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A
PARTICULAR PURPOSE. If any court having jurisdiction finally holds that this limitation of remedies
is void or unenforceable, Fuji’s liability for any claim shall be limited to the invoice price of
the Products giving rise to the claim. IN NO EVENT WILL FUJI BE LIABLE FOR INCIDENTAL,
CONSEQUENTIAL OR SPECIAL DAMAGES, EVEN IF SUCH DAMAGES RESULT FROM NEGLIGENCE OR OTHER FAULT.

4

 

     6.2 Customer hereby agrees to defend, indemnify and hold Fuji, its officers, affiliates,
directors, agents, representatives and employees harmless from and against any and all claims,
actions, demands, damages, causes of action, costs, and expenses (including reasonable attorney’s
fees) arising out of or relating to the use of the Products.

     7. Confidential Information.

     7.1 Both during and after the term of this Agreement, each party will maintain in secrecy, and
will neither disclose to a third person nor use for any purpose other than its performance
hereunder, the other party’s Confidential Information. In implementation of the preceding sentence,
forthwith upon the expiration or earlier termination of this Agreement, each party will return to
the other party, at no charge, all Confidential Information previously delivered to the receiving
party in written, quantitative or schematic expression or other tangible form and all copies of the
foregoing. Each party shall limit access to Confidential Information to those of its employees and
subcontractors for whom access is necessary in order to perform their employment or subcontracting
duties.

     7.2
Neither Fuji nor Customer shall, at any time, disclose Confidential Information to any
third party except (i) with the prior written consent of the other party, or (ii) by reason of
legal compulsion in any legal proceedings or pursuant to law. In the event either party proposes to
make any such disclosure pursuant to the exclusion contained in clause (ii) of the preceding
sentence, such party shall, prior to or concurrently with such disclosure, furnish the other party
a written opinion of legal counsel to the effect that such disclosure is made by reason of legal
compulsion.

     8. Term and Termination.

     8.1 This Agreement will become effective as of the date and year first above written and,
unless earlier terminated in accordance with Section 8.2, will continue in effect until June 30,
2007.

     8.2 This Agreement may be terminated prior to expiration of its term as follows:

          (a) Upon any of the following events either party may give notice of termination, effective
immediately: (i) the other party becomes insolvent or admits its inability to pay its debts
generally as they come due; (ii) any sheriff, marshal, custodian, trustee or receiver is appointed
by order of any court of competent jurisdiction to take charge of or sell any material portion of
the other party’s property; (iii) a case is filed by the other party under the bankruptcy code or
any other insolvency law; (iv) a case is filed against the other party without such party’s
application or consent under the bankruptcy code or any other insolvency law and such case
continues undismissed for 90 days; (v) the other party makes a general assignment for the benefit
of creditors; or (vi) the other party is dissolved or liquidated or takes any corporate action for
such purpose;

          (b) Either party may terminate this Agreement if the other shall commit a material breach of
this Agreement and such breach shall continue more than thirty (30) days after written notice of
such breach is given to the other party; or

5

 

          (c) Either party may terminate this Agreement at any time without cause upon ninety (90)
days prior written notice to the other party.

     8.3 In January 2007, the parties will commence negotiations for an extension of
this Agreement.

     9. General

     9.1 Each of the parties has taken all corporate action required to duly authorize its
execution, delivery and performance of this Agreement, and this Agreement constitutes an obligation
enforceable against it in accordance with its terms.

     9.2 Fuji and Customer are acting in the capacity of independent contractors. Nothing herein
contained may be construed as constituting either party the agent, employee, partner or co-venturer
of the other party.

     9.3 This Agreement may be amended by the parties hereto only by an instrument in writing
signed on behalf of each of the parties hereto.

     9.4 Any waiver of any default in performance of the provisions hereof must be in writing and
shall not operate as a waiver of, or estoppel with respect to, any subsequent default.

     9.5 All notices, consents, approvals, or other communications hereunder (other than routine
operational communications) shall be in writing and shall be delivered personally or by reputable
overnight delivery service (e.g., Fed Ex) or registered or certified mail, postage prepaid,
addressed to the parties at the following addresses (or at such other address for a party as shall
be specified by like notice):

     If to Fuji, to

Fuji Photo
Film U.S.A., Inc.

200 Summit Lake Drive

Valhalla, New York 10595

Attention: Dominick Insana, Vice President, Professional Market Sales

     with a copy to:

Fuji Photo Film U.S.A., Inc.

200 Summit Lake Drive

Valhalla, New York 10595

Attention: Legal Department

     If to Customer, to:

PCA LLC

815 Matthews-Mint Hill Road

Matthews, NC 28105

Attention: David Alexander

     with a copy to:

David Withington

6

 

PCA LLC

815 Matthews-Mint Hill Road

Matthews, NC 28105

                         Any such notice, consent, approval and other communication shall be
deemed given, in the case of mailing, on the third day following its deposit in the mail and in all
other cases upon receipt.

     9.6 Neither this Agreement nor any of the rights, interests or obligations hereunder shall be
assigned (either consensually or by operation of law) by either of the parties hereto without the
prior written consent of the other party, and any purported assignment in the absence of such
consent will be void. The foregoing notwithstanding, Customer acknowledges that Fuji will cause one
or more corporations under common control with it to manufacturer or sell the Products to Customer
hereunder; provided that Fuji remains obligated for the performance of all of Fuji’s obligations
hereunder.

     9.7 (a) This Agreement shall be governed by and construed in accordance with the laws of
State of New York (without giving effect to its principles of conflict of laws).

          (b) All disputes, controversies or differences which arise between the parties, out of or in
relation to or in connection with this Agreement, which cannot be amicably settled shall be finally
settled by arbitration before one arbitrator pursuant to the rules of the American Arbitration
Association.

          (c) Arbitration shall be conducted in New York, New York.

          (d) Arbitration may be commenced at any time by the party seeking resolution by giving written
notice to the other party that such dispute has been referred to arbitration pursuant to the terms
of this Section 9.7. The arbitrator shall be selected by the mutual agreement of the parties, but
if the parties do not so agree within twenty (20) days after the date of the arbitration notice,
the arbitrator shall be selected pursuant to the rules of the American Arbitration Association. Any
award rendered by the arbitrators shall be conclusive and binding upon the parties. This provision
for arbitration shall be specifically enforceable by the parties and decision of the arbitrators in
accordance herewith shall be final and binding and there shall be no right of appeal therefrom.

     9.8 The expiration or earlier termination of this Agreement will not operate to release either
party hereto from its obligations under Articles 6, 7 and Section and 8.3 (which obligations will
survive such expiration or termination) or from any liability which has already accrued to the
other party as of the date of expiration or termination or which may thereafter accrue in respect
of an act or omission occurring prior to expiration or termination. The expiration or earlier
termination of this Agreement will not operate to relieve either party hereto of the obligation to
perform in a timely manner all duties which it is required hereunder to perform in respect of any
orders for pieces of the Products outstanding as of the date of expiration or earlier termination.

     9.9 Neither party shall be responsible or liable in any way for failure or delay in carrying
out the terms of this Agreement resulting from any cause or circumstances beyond its

7

 

reasonable control, including by way of illustration but not limited to, fire, flood, war,
labor difficulties, interruption of transit, accident, explosion, civil commotion, and acts of any
governmental authority. Except as provided in the following sentence, no such failure or delay
shall terminate this Agreement, and each party shall complete its obligations hereunder as promptly
as reasonably practicable following cessation of the cause or circumstances of such failure or
delay. In the event of a delay in shipment for more than five (5) days beyond the scheduled
delivery date, Customer may purchase substitute product from another vendor. In such event, the
purchase of substitute product shall not be counted against Customer’s 1% limitation but shall be
counted in calculating the minimum purchase requirement. If such a delay in delivery of any pieces
of the Products extends beyond ninety (90) days, then either party may give notice of termination
effective at the end of such period.

     9.10 The headings in this Agreement are for convenience only and in no way alter, modify,
amend, limit or restrict the contractual obligations of the parties.

     9.11 This Agreement may be executed simultaneously in two or more counterparts, any of which
may be executed by a facsimile signature and each of which shall be deemed an original, but all of
which together shall constitute one and the same instrument.

     9.12 This Agreement, including the preamble, contains the entire agreement between Fuji and
Customer with respect to the transaction which is the subject matter hereof.

     IN WITNESS WHEREOF, Fuji and Customer have caused this Agreement to be executed by their
duly authorized representatives as of the date and year first above written.

	 	 	 	 	 	 	 
	 	 	FUJI PHOTO FILM U.S.A., INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ [ILLEGIBLE]	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	PCA LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ David J. Withington	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	DAVID J. WITHINGTON — SVP	 	 
	 

	 	 	 	12/2/2005	 	 

8

 

SCHEDULE
A

PRICING1

	 	 	 
	Color Paper

	 	5”x610 ft, 10”x610 ft, 16”x275 ft, 20”x275 ft: (***)
	 
	 	 
	 

	 	10”xl150 ft: not available-To be determined
	 
	 	 
	Paper Chemicals

	 	(***) (55 gal drum & no fix)
	 
	 	 
	 

	 	(***) (l5 gal drum & with fix)

 

			
	1	 	All prices are dead net.

 

 

      

			
	 	 	 
	
	 	CONFIDENTIAL       12/6/2005       Page 1 of 3
	 	 	 

December 6, 2005

Chemical prices herein indicated are quoted to coincide with the terms of the Supply Agreement by
and between Fuji Photo Film U.S.A., Inc. and PCA LLC executed December 2005. Should, for any
reason, the Supply Agreement not be executed or terminated after execution the prices herein
indicated are invalid.

FILM CHEMICALS

Developer

	 	 	 	 	 	 	 	 	 
	Catalog	 	 	 	Recommended	 	Package Size	 	 
	No.	 	Description	 	Replenishment Rate	 	(Vol. Makes/Pack)	 	Price/Unit
	816469

	 	Negacolor Developer Starter
	 	NA
	 	2 x 1L bottles
(15.1 gal)
	 	(***)
	818595

	 	Negacolor VLR Developer Replenisher, Part A
	 	 	 	55 gal drum
(733.3 gal)
	 	(***)
	818598

	 	Negacolor VLR Developer Replenisher, Part B
	 	35mm unperf = 5.3 ml/ft
46mm unperf = 5.3 ml/ft
	 	30 gal drum
(2400 gal)
	 	(***)
	818599

	 	Negacolor VLR Developer Replenisher, Part C
	 	 	 	30 gal drum
(2560 gal)
	 	(***)
	818592*

	 	Negacolor VLR Developer Replenisher, Part A
	 	 	 	15 gal drum
(200 gal)
	 	(***)
	818594*

	 	Negacolor VLR Developer Replenisher, Part B
	 	35mm unperf = 5.3 ml/ft
46mm unperf = 5.3 ml/ft
	 	15 gal drum
(1200 gal)
	 	(***)
	818593*

	 	Negacolor VLR Developer Replenisher, Part C
	 	 	 	15 gal drum
(1280 gal)
	 	(***)

 

* specific forecast required with 30 lead after forecast receipt

Bleach

	 	 	 	 	 	 	 	 	 
	Catalog	 	 	 	Recommended	 	Package Size	 	 
	No.	 	Description	 	Replenishment Rate	 	(Vol. Makes/Pack)	 	Price/Unit
	821952

	 	Negacolor Bleach Starter
	 	NA
	 	1 gal bottle
(62.4 gal)
	 	(***)
	821956

	 	Ultra Negacolor Bleach Concentrate
	 	35mm unperf = 9.2 ml/ft
46mm unperf = 12 ml/ft
	 	55 gal drum 
 (fresh rep = 137.5 gal)
 (fresh tank = 187 gal)
 (regen rep = 1277 gal)
	 	(***)
	821957*

	 	Ultra Negacolor Bleach Concentrate
	 	35mm unperf = 9.2
ml/ft
46mm unperf = 12 ml/ft
	 	15 gal drum 
 (fresh rep = 37.5 gal)
 (fresh tank = 51 gal)
(regen rep = 348 gal)
	 	(***)

 

* specific forecast required with 30 lead after forecast receipt

Fixer (Ammonium-based)

	 	 	 	 	 	 	 	 	 
	Catalog	 	 	 	Recommended	 	Package Size	 	 
	No.	 	Description	 	Replenishment Rate	 	(Vol. Makes/Pack)	 	Price/Unit
	818728

	 	EC Negacolor Unilec LR Fixer Replenisher
	 	35mm unperf = 2.9 ml/ft
46mm unperf = 3.8 ml/ft
	 	55 gal drum
(137.5 gal)
	 	(***)
	818718

	 	EC Negacolor Unilec LR Fixer Replenisher
	 	35mm unperf = 2.9 ml/ft
46mm unperf = 3.8 ml/ft
	 	15 gal drum
 (37.5 gal)
	 	(***)

 

 

      

			
	 	 	 
	
	 	CONFIDENTIAL       12/6/2005       Page 2 of 3
	 	 	 

Fixer (Ammonia-Free / Sodium-based)

	 	 	 	 	 	 	 	 	 
	Catalog	 	 	 	Recommended	 	Package Size	 	 
	No.	 	Description	 	Replenishment Rate	 	(Vol. Makes/Pack)	 	Price/Unit
	822312*

	 	EnviroSilv NA Fixer Replenisher, Part A
	 	35mm unperf = 2.9 ml/ft
46mm unperf = 3.8 ml/ft
	 	2 x 65 lb. bags
(125 gal)
	 	(***)
	822313*

	 	EnviroSilv NA Fixer Replenisher, Part B
	 	35mm unperf = 2.9 ml/ft
46mm unperf = 3.8 ml/ft
	 	55 gal drum
(125 gal)
	 	(***)

 

* specific forecast required with 30 lead after forecast receipt

Film
Rinse (Formaldehyde-Free)

	 	 	 	 	 	 	 	 	 
	Catalog	 	 	 	Recommended	 	Package Size	 	 
	No.	 	Description	 	Replenishment Rate	 	(Vol. Makes/Pack)	 	Price/Unit
	816523

	 	Envirochem Rinse Plus
	 	35mm unperf = 9.2 ml/ft
46mm unperf = 12 ml/ft
	 	55 gal drum
(5415 gal)
	 	(***)
	816524*

	 	Envirochem Rinse Plus
	 	35mm unperf = 9.2 ml/ft
 46mm unperf = 12 ml/ft
	 	15 gal drum
(1477 gal)
	 	(***)

 

* specific forecast required with 30 lead after forecast receipt

PAPER CHEMICALS

Developer

	 	 	 	 	 	 	 	 	 
	Catalog	 	 	 	Recommended	 	Package Size	 	 
	No.	 	Description	 	Replenishment Rate	 	(Vol. Makes/Pack)	 	Price/Unit
	800059

	 	Envirochem RA Developer Starter
	 	NA
	 	1 gal bottle
(X)
	 	(***)
	 
	816677

	 	Colorprint RA Developer Regenerator, Part A
	 	 	 	55 gal drum
(2200 gal)
	 	(***)
	816678

	 	Colorprint RA Developer Regenerator, Part B
	 	11 ml/ft2 @ 38° ± 0.3°C
	 	55 gal drum
(2200 gal)
	 	(***)
	816679

	 	Colorprint RA Developer Regenerator, Part C
	 	 	 	55 gal drum
(2200 gal)
	 	(***)
	816687*

	 	Colorprint RA Developer Regenerator, Part A
	 	 	 	15 gal drum
(600 gal)
	 	(***)
	816688*

	 	Colorprint RA Developer Regenerator, Part B
	 	11 ml/ft2 @ 38° ± 0.3°C
	 	15 gal drum
(600gal)
	 	(***)
	816689*

	 	Colorprint RA Developer Regenerator, Part C
	 	 	 	15 gal drum
(600 gal)
	 	(***)

 

* specific forecast required with 30 lead after forecast receipt

Bleach (Ammonia-Free)

	 	 	 	 	 	 	 	 	 
	Catalog	 	 	 	Recommended	 	Package Size	 	 
	No.	 	Description	 	Replenishment Rate	 	(Vol. Makes/Pack)	 	Price/Unit
	822381*

	 	Colorprint RA NA Bleach Regenerator
	 	11 ml/ft2 @ 38° ± 0.3°C
	 	55 gal drum
(fresh rep = 183 gal)
(fresh tank = 83 gal)
(regen rep = 433gal)
	 	(***)
	822380*

	 	Colorprint RA NA Bleach Regenerator
	 	11 ml/ft2 @ 38° ± 0.3°C
	 	15 gal drum
(fresh rep = 50 gal)
(fresh tank = 22.7 gal)
(regen rep = 118 gal)
	 	(***)

 

* specific forecast required with 30 lead after forecast receipt

 

 

      

			
	 	 	 
	
	 	CONFIDENTIAL       12/6/2005       Page 3 of 3
	 	 	 

Fix (Ammonia-based)

	 	 	 	 	 	 	 	 	 
	Catalog	 	 	 	Recommended	 	Package Size	 	 
	No.	 	Description	 	Replenishment Rate	 	(Vol. Makes/Pack)	 	Price/Unit
	818729*

	 	HCC404 Print Fixer & Replenisher
	 	6 ml/ft2 @ 35° ± 0.3°C
	 	55 gal drum
(183.3 gal)
	 	(***)
	818719*

	 	HCC404 Print Fixer & Replenisher
	 	6 ml/ft2 @ 35° ± 0.3°C
	 	15 gal drum
(50 gal)
	 	(***)

 

* specific forecast required with 30 lead after forecast receipt

Fix (Ammonia-free; sodium-based)

	 	 	 	 	 	 	 	 	 
	Catalog	 	 	 	Recommended	 	Package Size	 	 
	No.	 	Description	 	Replenishment Rate	 	(Vol. Makes/Pack)	 	Price/Unit
	800049*

	 	Colorprint RA NA Fixer & Regenerator
	 	6 ml/ft2 @ 35° ± 0.3°C
	 	55 gal drum
(fresh rep = 165 gal)
(fresh tank = 330 gal)
(regen rep = 275 gal)
	 	(***)
	800041*

	 	Colorprint RA NA Fixer & Regenerator
	 	6 ml/ft2 @ 35° ± 0.3°C
	 	15 gal drum 
(fresh rep = 45 gal)
 (fresh tank = 90 gal)
(regen rep = 75 gal)
	 	(***)

 

* specific forecast required with 30 lead after forecast receipt

MISCELLANEOUS CHEMICALS

Bulk Chemicals

	 	 	 	 	 	 	 
	Catalog	 	 	 	Package Size	 	 
	No.	 	Description	 	(Package Weight)	 	Price/Unit
	500068*

	 	Acetic Acid 56%
	 	55 gal drum
(430 lbs)
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	 	(***)EX-10.65 COLE RA PURCHASE AND SALE AGREEMENT

 

Exhibit 10.65

PURCHASE AND SALE AGREEMENT

     THIS PURCHASE AND SALE AGREEMENT (this “Agreement”), dated as of May 26, 2006, between COLE
ACQUISITIONS I, LLC, a Delaware limited liability company, formerly known as Cole Takedown, LLC
(“Seller”) having an address at 2555 East Camelback Road, Suite 400, Phoenix, AZ 85016, and COLE
OPERATING PARTNERSHIP II, LP, a Delaware limited partnership (“Purchaser”), having an address at
2555 East Camelback Road, Suite 400, Phoenix, AZ 85016.

RECITALS:

	 	A.	 	Seller owns 100% of the membership interest (“Sale Assets”) in Cole RA
Defiance OH, LLC, a Delaware limited liability company (“RA Defiance OH”).
	 
	 	B.	 	Purchaser desires to acquire from Seller, and Seller desires to sell to
Purchaser, the Sale Assets in accordance with and subject to the terms and
conditions of this Agreement.

     NOW, THEREFORE, in consideration of Ten Dollars ($10.00) and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be
legally bound, Seller and Purchaser agree as follows:

ARTICLE I

Definitions

     The following capitalized terms used in this Agreement shall have the meanings ascribed to
them below:

     “Assignment” shall have the meaning set forth in Section 2.03(b) of this Agreement.

     “Cash Portion” shall have the meaning set forth in Section 2.02 of this Agreement.

     “Closing” shall have the meaning set forth in Section 2.03(a) of this Agreement.

     “Closing Date” shall have the meaning set forth in Section 2.03(a) of this Agreement.

     “RA Defiance OH” shall have the meaning set forth in the Recitals of this Agreement.

     “Lease” shall mean the Lease for the Property dated January 14, 2005 by and between Lessee and
RA Defiance OH.

     “Lender” shall mean Wachovia Bank, National Association, a national banking association.

     “Lessee” shall mean Rite Aid of Ohio, Inc., an Ohio corporation.

     “Loan” shall mean that Two Million Two Hundred Thirty-one Thousand and no/100 Dollars
($2,231,000.00) loan from Lender to RA Defiance OH, secured by the Property.

     “Material Organizational Documents” shall mean, collectively, the following documents, as the
same may hereafter be amended: (i) Certificate of Formation of RA Defiance OH, and (ii) Limited
Liability Company Agreement of RA Defiance OH, together with any amendments thereto.

     “Mortgage” shall mean the Open-End Mortgage and Security Agreement dated January 4, 2006
affecting the Property.

     “Person” shall mean any individual, corporation, partnership, limited liability company, joint
venture, estate, trust, unincorporated association, any federal, state, county or municipal
government or any bureau, department or agency thereof and any fiduciary acting in such capacity on
behalf of any of the foregoing.

 

 

     “Property” shall mean the right, title and interest, if any of, RA Defiance OH in the property
commonly known as 618 N. Clinton, Defiance, Ohio 43512 and all improvements situated thereon,
together with all right, title and interest, if any, of RA Defiance OH in and to all hereditaments,
easements, rights-of-way, drives, alleys, parking areas and appurtenances thereunto belonging, or
in any way appertaining to such real property.

     “Purchase Price” shall have the meaning given such term in Section 2.02 of this Agreement.

     “Purchaser” shall have the meaning given such term in the Preamble of this Agreement.

     “Purchaser’s Closing Costs” shall have the meaning given such term in Section 2.04(b) of this
Agreement.

     “Purchaser Closing Documents” shall have the meaning given such term in Section 3.02(b) of
this Agreement.

     “Sale Assets” shall have the meaning given such term in the Recitals of this Agreement.

     “Seller” shall have the meaning given such term in the Preamble of this Agreement.

     “Seller Closing Documents” shall have the meaning given such term in Section 3.01(b) of this
Agreement.

     “Seller’s Closing Costs” shall have the meaning given such term in Section 2.04(a) of this
Agreement.

     “Seller’s Parties” shall have the meaning given such term in Section 2.05(b) of this
Agreement.

ARTICLE II

Agreement to Sell and Purchase;

Terms of Sale and Purchase

     2.01 Agreement to Sell and Purchase. In consideration of the mutual covenants and
agreements set forth herein and upon and subject to the terms, provisions and conditions of this
Agreement, Seller agrees to sell, assign, transfer and convey to Purchaser, and Purchaser agrees to
purchase and acquire from Seller, the Sale Assets, in accordance with and subject to the terms and
conditions of this Agreement.

     2.02 Purchase Price; Prorations. The purchase price payable by Purchaser to Seller
for the Sale Assets shall be Four Million Three Hundred Twenty-Six Thousand One Hundred Sixty-four
and 69/100 Dollars ($4,326,164.69) (the “Purchase Price”), of which Two Million Five Thousand One
Hundred Sixty-four and 69/100 Dollars ($2,005,164.69) shall be cash (the “Cash Portion”) and Two
Million Three Hundred Twenty-One Thousand and 00/100 Dollars ($2,321,000.00) shall be by the
assumption of the Loan, payable as follows:

          (a) On the Closing Date, the Cash Portion shall be paid by wire transfer of
immediately available United States federal funds or other method acceptable to Seller to the
account or accounts designated by Seller.

          (b) Purchaser acknowledges that the Property is leased to the Lessee pursuant to the
Lease and that Lessee pays minimum rent on a monthly basis pursuant thereto. On the Closing Date,
Seller and Purchaser shall prorate the minimum rent paid under the Lease for the month in which the
Closing Date occurs, such that there shall be an adjustment in favor of Purchaser in an amount
determined by multiplying such minimum rent for the month in question by a fraction, the numerator
of which is the number of days from and after the Closing Date through the last day of the month in
which the Closing occurs and the denominator of which is the total number of days in the month in
which the Closing occurs. It is the intention of the parties to adjust only the minimum rent for
the month in which the Closing occurs. There shall be no other prorations or adjustments.

     2.03 The Closing.

 

 

          (a) The consummation of the sale and purchase of the Sale Assets contemplated by this
Agreement (the “Closing”) shall take place on May 26, 2006 (the “Closing Date”).

          (b) On the Closing Date, Seller shall sell, assign, transfer and convey to Purchaser all of
Seller’s right, title and interest in and to the Sale Assets by delivery to Purchaser of an
instrument of assignment in the form annexed hereto as Schedule A (the “Assignment”), and
Purchaser shall pay to Seller the Purchase Price therefor as contemplated by Section 2.02 hereof.

     2.04 Closing Costs.

          (a) In connection with the conveyance of the Sale Assets by Seller to Purchaser,
Seller shall pay the (“Seller’s Closing Costs”) fees and expenses of Seller’s legal counsel.

          (b) In connection with the conveyance of the Sale Assets by Seller to Purchaser,
Purchaser shall pay the following (“Purchaser’s Closing Costs”): (i) the fees and expenses of
Purchaser’s legal counsel, (ii) all costs incurred in connection with Purchaser’s assumption of the
Loan (including Lender’s costs and expenses), (iii) any transfer taxes, if applicable, arising in
connection with the transaction contemplated by this Agreement, (iv) the cost of Purchaser’s due
diligence investigation, and (v) all other costs and expenses arising in connection with the
transaction contemplated herein, other than the costs that are Seller’s responsibility pursuant to
Section 2.04(a) hereof.

          (c) The provisions of this Section 2.04 shall survive the Closing.

     2.05 Non-Recourse.

          (a) With respect to a violation of a representation by Seller contained herein or made
pursuant hereto discovered by Purchaser after the Closing, subject to the limitation of survival of
a representation set forth in Section 3.01 hereof, Purchaser shall be entitled to commence an
action to obtain actual damages against Seller; provided, however, that Seller’s liability
hereunder shall in no event exceed an amount equal to the Purchase Price actually received by
Seller; provided, further, however, in no event shall Purchaser have the right to collect any
consequential or indirect damages from Seller and Purchaser waives any and all such rights.

          (b) Anything contained in this Agreement to the contrary notwithstanding, no recourse shall be
had for the payment of any sum due under this Agreement, or for any claim based hereon or otherwise
in respect hereof against any members, directors, officers, employees, shareholders, policyholders,
partners, affiliates, trustees, administrators or agents of Seller or of any of the foregoing or
the legal representative, heir, estate, successor or assignee of any of the foregoing or against
any other person, partnership, corporation or trust, as principal of Seller, whether disclosed or
undisclosed (collectively, “Seller’s Parties”). It is understood and agreed by the parties that
all of the obligations of Seller under or with respect to this Agreement may not be enforced
against Seller’s Parties.

ARTICLE III

Representations and Warranties

     3.01 Seller Representations and Warranties. Seller represents and warrants to
Purchaser that as of the date hereof:

          (a) Seller is a limited liability company, duly organized, validly existing and in
good standing under the laws of its jurisdiction of formation.

          (b) Seller has all requisite power and authority to execute and deliver this
Agreement and all documents, certificates, agreements, instruments and writings it is required to
deliver hereunder (collectively, the “Seller Closing Documents”), and to perform, carry out and
consummate the transactions contemplated to be consummated by it hereby and thereby, including the
power and authority to sell, transfer and convey the interest in the Sale Assets to be sold by it,
subject to the satisfaction of the conditions precedent to Seller’s obligations

 

 

hereinafter provided. The execution, delivery and performance of this Agreement and the other
Seller Closing Documents have been duly authorized by all necessary action of Seller, including any
required approval of the members of Seller. This Agreement does, and when executed by Seller, the
other Seller Closing Documents shall, constitute the legal, valid and binding obligations of
Seller, enforceable against Seller in accordance with their respective terms, except as such
enforceability may be limited by bankruptcy, insolvency or similar laws and by equitable
principles.

          (c) There is no action, suit or proceeding before any court or governmental or other
regulatory or administrative agency, commission or tribunal pending or, to the actual knowledge of
Seller, threatened against Seller or the interest in the Sale Assets to be sold by Seller which, if
determined adversely to Seller would reasonably be expected to interfere in any material respect
with the ability of Seller to perform its obligations under this Agreement or materially and
adversely affect the value of the interest in the Sale Assets to be sold by Seller.

          (d) Seller has not entered into any leases for the Property other than the Lease.

          (e) To Seller’s actual knowledge, the Lease is in full force and effect and the
obligation to pay rent thereunder has commenced. Seller has not received written notice of any
uncured default from Lessee under the Lease.

          (f) At Closing, other than the lien of the Mortgage, the Sale Assets to be sold by
Seller shall be free and clear of any lien, security interest or encumbrance thereon. There are no
rights, options or other agreements of any kind to purchase, acquire, receive or issue any interest
of Seller in and to the Sale Assets to be sold by it.

          (g) RA Defiance OH has legal title to the Property, subject to the existing state of
title of the Property.

          (h) RA Defiance OH has not incurred any liabilities, except for (i) its obligations
under the Mortgage, (ii) its obligations under the Material Organizational Documents, (iii)
obligations arising from or relating to the ownership of its interests in the Property, (iv) its
obligations relating to the maintenance of its status as a Delaware limited liability company and
the maintenance of such company’s qualifications to do business in such other jurisdictions where
it has qualified to do business, (v) obligations arising under any matter appearing of record
against the Property, (vi) customary unsecured trade debt which will not exceed $1,000.00 as of the
Closing Date, and (vii) the obligation to pay fees to National Registered Agents, Inc. for acting
as its registered agent. RA Defiance OH does not own any assets, except (1) relating to the
ownership of its interest in the Property, and (2) bank accounts.

          (i) RA Defiance OH has been duly formed as a limited liability company and is
validly existing in good standing under the laws of the State of Delaware and has the power and
authority to own the Property.

     3.02 Purchaser Representations and Warranties. Purchaser represents and warrants to
Seller that as of the date hereof:

          (a) Purchaser is a limited partnership, duly organized, validly existing and in good
standing under the laws of the jurisdiction of its formation.

          (b) Purchaser has all requisite power and authority to execute and deliver this
Agreement and all documents, certificates, agreements, instruments and writings it is required to
deliver hereunder, if any (collectively, the “Purchaser Closing Documents”), and to perform, carry
out and consummate the transactions contemplated hereby and thereby. The execution, delivery and
performance of this Agreement and the other Purchaser Closing Documents have been duly authorized
by all necessary corporate action on the part of Purchaser. This Agreement does, and when executed
by Purchaser, the other Purchaser Closing Documents shall, constitute the

 

 

legal, valid and binding obligations of Purchaser enforceable against Purchaser in accordance
with their respective terms, except as such enforceability may be limited by bankruptcy, insolvency
or similar laws and by equitable principles.

          (c) There is no action, suit or proceeding before any court or governmental or other
regulatory or administrative agency, commission or tribunal pending or, to the actual knowledge of
Purchaser (without any duty to investigate), threatened against Purchaser which, if determined
adversely to Purchaser, could reasonably be expected to interfere in any material respect with the
ability of Purchaser to perform its obligations under this Agreement.

ARTICLE IV

Conditions

     4.01 Seller’s Conditions. The obligation of Seller under this Agreement to
consummate the transactions contemplated hereby shall be subject to the satisfaction of all the
following conditions, any one or more of which may be waived in writing by Seller:

          (a) Seller shall have received payment of the Purchase Price in accordance with
Section 2.02 of this Agreement.

          (b) Purchaser shall have delivered all of the documents and other items described in
Section 5.01.

          (c) The representations and warranties of Purchaser set forth in Section 3.02 above
shall be true and correct in all material respects.

     4.02 Purchaser’s Conditions. The obligation of Purchaser under this Agreement to
consummate the transactions contemplated hereby shall be subject to the satisfaction of all of the
following conditions, any one or more of which may be waived in writing by Purchaser:

          (a) Seller shall have delivered all of the documents and other items described in
Section 5.02.

          (b) The representations and warranties of Seller set forth in Section 3.01 above
shall be true and correct in all material respects, except for any matters pertaining to the
Properties that are Lessee’s responsibility under the Lease.

ARTICLE V

Closing Deliveries

     5.01 Purchaser’s Closing Deliveries. At or prior to the Closing, Purchaser shall
make or cause to be made the following deliveries:

          (a) Purchaser shall have executed and delivered to Seller the Assignment.

          (b) Purchaser shall have delivered to Seller evidence as to the authority of the
person or persons executing documents on behalf of Purchaser.

     5.02 Seller’s Closing Deliveries. At or prior to the Closing, Seller shall make or
cause to be made the following deliveries:

          (a) Seller shall have executed and delivered to Purchaser the Assignment.

 

 

          (b) Seller shall have executed and delivered to Purchaser a certificate of “non-
foreign person” status that meets the requirements of Section 1445 of the Internal Revenue Code of
1986, as amended.

          (c) Seller shall have delivered to Purchaser the original or certified copies of the Material
Organizational Documents.

          (d) Seller shall have delivered to Purchaser evidence as to the authority of the person or
persons executing the Seller Closing Documents on behalf of Seller.

ARTICLE VI

Miscellaneous

     6.01 Broker. (a) Seller represents and warrants that neither Seller nor any of its
respective affiliates or any of its respective directors, officers, partners, managers or members
has dealt with anyone acting as broker, finder, financial advisor or in any similar capacity in
connection with this Agreement or any of the transactions contemplated hereby. Seller shall
indemnify, defend and hold harmless Purchaser from any and all claims, actions, liabilities,
losses, damages and expenses, including reasonable attorneys’ fees and disbursements, which may be
asserted against or incurred by Purchaser arising from a breach of Seller’s representation
contained in this Section 6.01(a).

          (b) Purchaser represents and warrants that neither Purchaser nor any of its
affiliates or any of their respective directors, officers, partners, managers or members has dealt
with anyone acting as broker, finder, financial advisor or in any similar capacity in connection
with this Agreement or any of the transactions contemplated hereby. Purchaser shall indemnify,
defend and hold harmless Seller from any and all claims, actions, liabilities, losses, damages and
expenses, including reasonable attorneys’ fees and disbursements, which may be asserted against or
incurred by Seller arising from a breach of Purchaser’s representation contained in this Section
6.01(b).

     6.02 Entire Agreement. This Agreement, including all schedules and exhibits hereto,
the Seller Closing Documents and the Purchaser Closing Documents supersede all prior discussions
and agreements between the parties with respect to the subject matter hereof and thereof, and
contain the sole and entire agreement between the parties hereto with respect to the subject matter
hereof and thereof.

     6.03 Waiver. Any term or condition of this Agreement may be waived at any time by
the party that is entitled to the benefit thereof, but no such waiver shall be effective unless set
forth in written instrument duly executed by or on behalf of the party waiving such term or
condition. No waiver by any party of any term or condition of this Agreement, in any one or more
instances, shall be deemed to be or construed as a waiver of the same or any other term or
condition of this Agreement on any future occasion. All remedies, either under this Agreement or
by applicable law or otherwise afforded, will be cumulative and not alternative.

     6.04 Modification. This Agreement may be amended, supplemented or modified only by
a written instrument duly executed by or on behalf of each party hereto.

     6.05 Successors and Assigns. The terms and provisions of this Agreement are intended
solely for the benefit of each party hereto and their respective successors or permitted assigns,
and it is not the intention of the parties to confer third-party beneficiary rights upon any other
person. Subject to the terms of Section 6.10 hereof, this Agreement is binding upon, inures to the
benefit of and is enforceable by the parties hereto and their respective successors and assigns.

     6.06 Interpretation. If any provision of this Agreement is held to be illegal,
invalid or unenforceable under any present or future law, and if the rights or obligations of any
party hereto under this Agreement will not be materially and adversely affected thereby, (a) such
provision will be fully severable, (b) this Agreement will be construed and enforced as if such
illegal, invalid or unenforceable provision had never comprised a part hereof, (c) the remaining
provisions of this Agreement will remain in full force and effect and will not be affected by the

 

 

illegal, valid or unenforceable provision or by its severance herefrom and (d) in lieu of such
illegal, invalid or unenforceable provision, there will be added automatically as a part of this
Agreement a legal, valid and enforceable provision as similar in terms to such illegal, invalid or
unenforceable provision as may be possible.

     6.07 Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of Arizona applicable to a contract executed and performed in such
State, without giving effect to the conflicts of laws principles thereof.

     6.08 Counterparts. This Agreement may be executed in any number of counterparts,
and by facsimile signature, each of which shall be deemed an original, but all of which together
shall constitute one and the same instrument.

     6.09 Assignment. Purchaser shall not assign or transfer its rights or obligations
under this Agreement without the prior written consent of Seller, which consent may be granted or
denied in Seller’s reasonable discretion. Notwithstanding the foregoing, Purchaser shall have the
right, without Seller’s consent, to assign this Agreement to any affiliate of Purchaser controlled
by Purchaser, provided such assignee agrees to assume, pursuant to an instrument reasonably
acceptable to Seller, the obligations of Purchaser hereunder. No assignment of this Agreement by
Purchaser shall relieve the Purchaser named herein of its obligations hereunder and, subsequent to
any such assignment, the liability of such named Purchaser hereunder shall continue notwithstanding
any subsequent modification or amendment hereof or the release of any subsequent purchaser
hereunder from any liability, to all of which Purchaser consents in advance. No further assignment
or transfer shall be permitted.

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

 

 

     IN WITNESS WHEREOF, Seller and Purchaser have executed and delivered this Agreement as of the
day and year first above written.

	 	 	 	 	 	 	 
	 	 	SELLER:	 	 
	 
	 	 	 	 	 	 
	 	 	COLE ACQUISITIONS I, LLC, a Delaware limited liability	 	 
	 	 	company	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	  /s/ John M. Pons	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	  John M. Pons	 	 
	 

	 	 	 	  Senior Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	PURCHASER:	 	 
	 
	 	 	 	 	 	 
	 	 	COLE OPERATING PARTNERSHIP II, LP, a Delaware limited	 	 
	 	 	partnership	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	  Cole Credit Property Trust II, Inc., a Maryland corporation,	 	 
	 

	 	 	 	  its General Partner	 	 

	 	 	 	 	 	 	 
	 

	 	By:
	 	  /s/ Blair D. Koblenz
	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	  Blair D. Koblenz	 	 
	 

	 	 	 	  Executive Vice President	 	 

 

 

SCHEDULE A

INSTRUMENT OF ASSIGNMENT AND ASSUMPTION

     INSTRUMENT OF ASSIGNMENT AND ASSUMPTION (this “Agreement”), dated this                      day of
                                        , 2006, between COLE ACQUISITIONS I, LLC, a Delaware limited liability company, formerly
known as Cole Takedown, LLC (“Assignor”), as assignor, having an address 2555 East Camelback Road,
Suite 400, Phoenix, AZ 85016, and COLE OPERATING PARTNERSHIP II, LP, a Delaware limited
partnership (“Assignee”), as assignee, having an address at 2555 East Camelback Road, Suite 400,
Phoenix, AZ 85016.

W I T N E S S E T H:

     WHEREAS, Assignor owns 100% of the membership interest (the “Interest”) in Cole RA Defiance
OH, LLC, a Delaware limited liability company (“RA Defiance OH”); and

     WHEREAS, Assignor and Assignee are entering into this Agreement to evidence and confirm the
transfer and assignment of the Interest to Assignee, and the assumption by Assignee of the
obligations and responsibilities attendant thereto, all from and after the date hereof.

     NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, Assignor hereby transfers, assigns and conveys to Assignee, its successors and
assigns forever, the Interest from and after the date hereof.

     TO HAVE AND TO HOLD, unto Assignee, its successors and assigns, forever.

     Assignor makes no representation or warranty, express or implied, in fact or by law, with
respect to the assets being conveyed hereunder, except as represented and warranted by Assignor in
the Purchase and Sale Agreement, dated as of                                         , 2006, between Assignor and Assignee
(the Purchase Agreement”), subject to the conditions and limitations set forth therein.

     Assignee hereby accepts such transfer, assignment and conveyance and assumes all of the
obligations of Assignor under the Material Organizational Documents (as defined in the Purchase
Agreement) arising from and after the date hereof, and agrees to be bound by the terms contained in
the Material Organizational Documents.

     Assignor withdraws, and relinquishes any and all of its right, title and interest, as a Member
and as Manager of RA Defiance OH, from and after the date hereof. Assignee unconditionally and
irrevocably consents to such withdrawal.

     This Agreement shall be binding upon, inure to the benefit of, and be enforceable by Assignor
and Assignee, and their respective successors and assigns.

     Whenever possible, each provision hereof shall be interpreted in such a manner as to be
effective and valid under applicable law, but if any provision hereof shall be prohibited by or
invalid under such law, then such provision shall be ineffective to the extent of such prohibition
or invalidity without invalidating the remainder of such provision or the remaining provisions of
this Agreement. This Agreement may not be modified, amended, altered or changed, nor any provision
hereof waived, except in writing with the mutual consent of all parties hereto.

     This Agreement shall be governed by and construed in accordance with the laws of the State of
Arizona (without reference to conflicts of laws principles).

     This Agreement may be executed in any number of counterparts, each of which shall be an
original, but all of which when taken together shall constitute a single original.

     IN WITNESS WHEREOF, Assignor and Assignee have executed this Agreement on the date first set
forth above.

 

 

	 	 	 	 	 
	 	 	ASSIGNOR:
	 

	 	 	 	 
	 	 	COLE ACQUISITIONS I, LLC, a Delaware limited liability
	 	 	company
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	  John M. Pons
	 

	 	 	 	  Senior Vice President
	 
	 	 	 	 
	 	 	ASSIGNEE:
	 
	 	 	 	 
	 	 	COLE OPERATING PARTNERSHIP II, LP, a Delaware
	 	 	limited partnership
	 
	 	 	 	 
	 

	 	By:
	 	  Cole Credit Property Trust II, Inc., a Maryland
	 

	 	 	 	  corporation, its General Partner

	 	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	  Blair D. Koblenz
	 

	 	 	 	  Executive Vice President

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