Document:

Sale Agreement

 Exhibit 10.121 
  
 SALE AGREEMENT 
  
 BETWEEN 
  
 TRIZEC REALTY, LLC, a California limited liability company 
  
 AS SELLER 
  
 AND 
  
 EQUINIX, INC., a Delaware Corporation 
  
 AS
PURCHASER; 
  
 As of October 3, 2005 

 SALE AGREEMENT 
  
 THIS SALE AGREEMENT (this “Agreement”) is made as of October 3, 2005
(the ”Effective Date”), by and between Trizec Realty, LLC, a California limited liability company (“Seller”), and Equinix, Inc., a Delaware corporation (“Purchaser”).

  
 ARTICLE 1 
  
 PURCHASE AND SALE 
  
 1.1. Agreement of Purchase and Sale. Subject to the terms and
conditions hereinafter set forth and intending to be legally bound hereby, Seller agrees to sell and convey and Purchaser agrees to purchase the following: 
  
 (a) those certain tracts or parcels of land situated in Loudoun County, Virginia, as more particularly described on
Exhibit A attached hereto and made a part hereof, (the property described in clause (a) of this Section 1.1 being herein referred to collectively as the “Land”); 
  
 (b) the buildings, structures, fixtures, systems and other
improvements on and under the Land, including specifically, without limitation, those certain office buildings located thereon commonly known as Beaumeade Corporate Park excluding specifically all fixtures owned by tenants (the property described in
clause (b) of this Section 1.1 being herein referred to collectively as the “Improvements”); 
  
 (c) the personal property owned by Seller upon the Land, or within the Improvements, including specifically, without limitation, heating,
ventilation and air conditioning systems and equipment, (including the equipment and mechanical systems) appliances, furniture, carpeting, draperies and curtains, tools and supplies, and other items of personal property used in connection with the
ownership, management, leasing, maintenance and operation of the Land and the Improvements (but excluding cash, proprietary computer software owned by the management agent for the Improvements and the personal property described on
Exhibit B hereto) (the property described in clause (d) of this Section 1.1 being herein referred to collectively as the “Personal Property”); 
  
 (d) all of Seller’s right, title and interest in all
oral or written agreements pursuant to which any portion of the Land or Improvements is used or occupied by anyone other than Seller including those listed and described on Exhibit C hereto (the property described in
clause (d) of this Section 1.1 being herein referred to collectively as the “Leases”) and all rents to become due thereunder and all tenant security deposits and guarantees arising under the Leases; and 

 
 (e) all of Seller’s right, title and interest in and
to (i) those assignable contracts and agreements relating to the ownership, management, leasing, construction, upkeep, repair, maintenance or operation of the Land, Improvements or Personal Property which will extend beyond the date of Closing
listed on Exhibit D hereto including specifically, without limitation, all assignable equipment leases, if any, (collectively, the 

 “Operating Agreements”) and the brokerage agreements listed on Exhibit
O, (ii) all assignable warranties and guaranties (express or implied) issued to Seller in connection with the Improvements or the Personal Property, (iii) all architectural, mechanical, engineering and other plans and
specifications relating to the Improvements, subject to any ownership claims which any architect or engineer may have to them, (iv) all assignable certificates of occupancy and all other licenses, permits, authorizations, consents, certificates
and approvals issued by any governmental authority having jurisdiction over the Improvements, and (v) all other assignable intangible personal property owned by Seller relating to the ownership and operation of the Improvements including
Seller’s right, title and interest, if any, to the name “Beaumeade Corporate Park” (the property described in this Section 1.1(e) being sometimes herein referred to collectively as the “Intangibles”).

  
 1.2. Definition of Property. The Land and the
Improvements are hereinafter referred to collectively as the “Real Property”. The Real Property, the Personal Property, the Leases and the Intangibles are hereinafter sometimes referred to collectively as the
“Property”. 
  
 1.3. Purchase
Price. Seller is to sell and Purchaser is to purchase the Property for the amount of Fifty Three Million and No/100 Dollars ($53,000,000.00) (the “Purchase Price”). 
  
 1.4. Payment of Purchase Price. The Purchase Price, as
increased or decreased by prorations and adjustments as herein provided, shall be payable at Closing in cash by wire transfer of immediately available funds to a bank account designated by Seller in writing to Purchaser prior to the Closing.

  
 1.5. Deposit. Simultaneously with the execution
and delivery of this Agreement, Purchaser shall pay to Seller in good funds either by certified bank or cashier’s check or by federal wire transfer the sum of Ten Million and No/100 Dollars ($10,000,000.00) (the
“Deposit”). Purchaser acknowledges and agrees that except as otherwise provided herein, the Deposit shall be non-refundable and may be retained by Seller to the extent and in accordance with the provisions of this Agreement;
provided that if the Closing occurs, the same shall be applied against the Purchase Price at Closing. 
  
 1.6. Escrow Agent. Seller and Purchaser agree that the duties of First American Title Insurance Company, 30 North LaSalle Street, Suite 310,
Chicago, Illinois 60602, Attention: James McIntosh (“Escrow Agent” or “Title Company”) hereunder, except in its capacity as the issuer of the Title Policy, as defined below, are purely ministerial in nature and shall be expressly
limited to the closing of the transaction contemplated herein in accordance with this Agreement. Escrow Agent shall incur no liability hereunder for any reason other than Escrow Agent’s willful misconduct or gross negligence. 
  
 Escrow Agent shall execute this Agreement solely for the purpose of being
bound by the provisions of Sections 1.5 and 1.6 hereof. 
  

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 ARTICLE 2 
  
 TITLE AND SURVEY 
  
 2.1. Survey. Prior to the execution and delivery of this Agreement, Seller has delivered to Purchaser a copy of that certain ALTA land
survey of the Real Property, dated December 1, 1999, and last revised May 14, 2001, prepared and certified by Dewberry & Davis (the “Existing Survey”). Seller shall have no obligation to obtain any
modification, update, or recertification of the Existing Survey but Purchaser has the right to engage Dewberry & Davis or another surveying firm to update the Existing Survey as required by the Title Company or by Purchaser in connection
with its acquisition of the Property; any such modification, update or recertification required by Purchaser or the Title Company shall be at Purchaser’s expense and shall not be a condition to or delay the Closing. 
  
 2.2. Title Policy. Prior to execution and delivery of this
Agreement, Purchaser has caused the Title Company to furnish to Purchaser a pro-forma title policy or commitment to issue title insurance (the “Commitment”), in the form of Exhibit L attached hereto,
agreeing to issue at Closing an owner’s policy of title insurance (the “Title Policy”) in the amount of the Purchase Price on the ALTA Owner Policy of Title Insurance with extended coverage, insuring Purchaser’s fee
simple title to the Real Property to be good and indefeasible, subject to the terms of such policy and the exceptions described therein (the “Permitted Exceptions”) and title endorsements included therewith, in the form set
forth in the Commitment and based upon the Existing Survey. Purchaser hereby approves the Commitment, the Existing Survey, and all title exceptions and matters disclosed therein. Notwithstanding any provision of this Section 2.2 to the
contrary, Seller will be obligated to satisfy the applicable requirements listed in Schedule B, Section 1 of the Commitment and cure prior to Closing exceptions to title to the Real Property and Improvements relating to (or, as to items in
(b) below, cure or cause deletion from the Title Policy or affirmative title insurance over) (a) liens and security interests securing any loan to Seller, and (b) any other liens or security interests created by documents executed by
Seller to secure monetary obligations, and mechanic’s liens pertaining to work performed by or for Seller, but excluding liens for ad valorem taxes and assessments not yet due and payable. 
  
 ARTICLE 3 
  
 REVIEW OF PROPERTY 
  
 3.1. Right of Inspection. During the period beginning upon the
Effective Date and continuing through the Closing Date, Purchaser has had and shall continue to have the right to make a physical inspection of the Real Property, including an inspection of the environmental condition thereof pursuant to the terms
and conditions of this Agreement, and to examine at the Improvements (or the property manager’s office) all documents and files concerning the leasing, maintenance and operation of the Property, including expense budgets (including actual
expenses) and accounting and tax records to the extent related to the operation of the Property, but excluding Seller’s other partnership or corporate records, internal memoranda, operating and revenue budgets, accounting and tax records,
appraisals, financial projections and similar proprietary, confidential or privileged information (collectively, the “Confidential Documents”). 
  

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 Purchaser understands and agrees that any on-site inspections of the Real Property shall occur at
reasonable times agreed upon by Seller and Purchaser after reasonable prior written notice to Seller and shall be conducted so as not to interfere unreasonably with the use of the Real Property by Seller or its tenants. Seller reserves the right to
have a representative present during any such inspections. Purchaser shall have the right on not less than 24 hours notice to Seller to conduct interviews with the Tenants at the Property. All such interviews shall be arranged through Seller and
Seller shall have the right to have a representative present at any such interviews. If Purchaser desires to do any invasive testing at the Real Property, Purchaser shall do so only after notifying Seller and obtaining Seller’s prior written
consent thereto, which consent may be subject to any terms and conditions imposed by Seller in its sole discretion. Purchaser shall promptly restore the Real Property to its condition prior to any such inspections or tests, at Purchaser’s sole
cost and expense. At Seller’s option, Purchaser will furnish to Seller copies of any reports received by Purchaser relating to any inspections performed pursuant to the terms hereof. Purchaser agrees to protect, indemnify, defend and hold
Seller harmless from and against any claim for liabilities, losses, costs, expenses (including reasonable attorneys’ fees), damages or injuries arising out of or resulting from the inspection of the Real Property by Purchaser or its agents or
consultants (excluding discovery of a condition), and notwithstanding anything to the contrary in this Agreement, such obligation to indemnify and hold harmless Seller shall survive Closing or any termination of this Agreement. Unless legally
required to report a condition that is revealed by inspections, Purchaser shall not contact any governmental authority without first obtaining the prior written consent of Seller thereto and Seller, at Seller’s election, shall be entitled to
have a representative on any telephone call or other contact made by Purchaser to a governmental authority and to be present at any meeting between Purchaser and a governmental authority. The foregoing shall not, however, prevent Purchaser from
contacting governmental authorities to request zoning and code compliance letters for customary due diligence and shall not prohibit Purchaser from reviewing or requesting copies of public files relating to the Property. Purchaser shall maintain
commercial general liability insurance, evidencing the existence of coverage of $2,000,000.00 any one occurrence and in the annual aggregate. Purchaser shall assure that its contractors maintain public liability and property damage insurance in
amounts and in form and substance adequate to insure against all liabilities of Purchaser and its agents, employees or contractors arising out of any entry upon or inspection of the Real Property pursuant to the provisions hereof and concurrently
with the execution hereof, Purchaser shall provide Seller with evidence of such insurance coverage naming Seller as an additional insured party thereunder. 
  
 3.2. Approval of Property. By its execution of this Agreement Purchaser is hereby approving all aspects of the Property and electing to
proceed with the purchase of the Property pursuant to the terms hereof, subject to all conditions to Closing otherwise specified herein. 
  
 3.3. Review of Tenant Estoppels. Prior to the Effective Date, Seller has delivered to each tenant of the Improvements an estoppel
certificate in substantially the forms of Exhibit E and Exhibit E-2 (with respect to the lease with the United States Postal Service (the “USPS Lease”)) attached hereto (the “Tenant
Estoppels”), and has requested that the tenants sign the Tenant Estoppels and return them to Seller. After Seller receives each Tenant Estoppel executed by a tenant, Seller shall promptly deliver the same to Purchaser and,
notwithstanding anything to the contrary contained herein, if Purchaser does not object by giving a written notice to Seller to any such Tenant Estoppel within three (3) business days following its receipt of the same, then 
  

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 such Tenant Estoppel shall be deemed to be an Approved Estoppel (as defined herein). An “Approved
Estoppel” shall mean a Tenant Estoppel in the form of Exhibit E or, with respect to the USPS Lease in the form of Exhibit E-2, or in such other form that is required under or attached to a tenant’s
Lease, even though it may not be in the form or substance sent to the tenant pursuant to this Section 3.3, containing no material exceptions or qualifications to the certifications set forth thereon (it being understood that adding the phrase
“to tenant’s knowledge,” reservations of rights to audit the landlord’s records or the like shall not be a material exception or qualification, but a claim by a tenant that the landlord is in default under its Lease shall be a
material exception). 
  
 3.4. Submission of
SNDA’s. Seller agrees to use commercially reasonable efforts to cooperate with Purchaser and its lender in order to obtain subordination, non-disturbance and attornment agreements (“SNDA’s”) from tenants of
the Improvements as may be required by Purchaser’s lender(s) on such lender’s required form; provided that the receipt of the SNDA’s by Purchaser shall not be conditions to Closing. 
  
 ARTICLE 4 
  
 CLOSING 
  
 4.1. Time and Place. The consummation of the transaction
contemplated hereby (the “Closing”) shall be held at the Title Company’s offices or the offices of Seller’s Counsel on the date that is on or prior to October 18, 2005, (said date, as the same may be extended,
is called the “Closing Date”), provided, however, Seller may extend the Closing Date, from time to time, in order to satisfy the condition set forth in Section 4.6(e) for up to thirty (30) days by giving written
notice to Purchaser no later than two (2) business days prior to the then scheduled Closing Date. At the Closing, Seller and Purchaser shall perform the obligations set forth in, respectively, Section 4.2 and Section 4.3 hereof, the
performance of which obligations shall be concurrent conditions. At Seller’s or Purchaser’s option, the Closing shall be consummated through an escrow administered by Escrow Agent. In such event, the Purchase Price and all documents shall
be deposited with the Escrow Agent, as escrowee. 
  
 4.2.
Seller’s Obligations at Closing. At Closing, Seller shall: 
  
 (a) deliver to Purchaser a duly executed special warranty deed (the “Deed”) in the form attached hereto as Exhibit F, conveying the Real Property, subject only to the
Permitted Exceptions; 
  
 (b) deliver to
Purchaser a duly executed bill of sale (collectively, the “Bill of Sale”) conveying the Personal Property without warranty, express or implied, as to use, merchantability and fitness for any purpose and in the form attached
hereto as Exhibit G; 
  
 (c)
assign to Purchaser, and Purchaser shall assume, the landlord/lessor interest in and to the Leases, Rents and Security Deposits, and any and all obligations to pay Commissions and finder’s fees with respect to the Leases and amendments,
renewals and expansions thereof, to the extent provided in Section 4.4(b)(v) hereof, by a duly executed assignment and assumption agreement in the form attached hereto as Exhibit H (the “Assignment of
Leases”); 
  

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 (d) to the extent the same are not terminable by Seller pursuant to Section 5.5(e)
below and to the extent assignable, assign to Purchaser, and Purchaser shall assume, Seller’s interest in the Operating Agreements and the other Intangibles by a duly executed assignment and assumption agreement in the form attached hereto as
Exhibit I (the “Assignment of Contracts”); 
  
 (e) join with Purchaser to execute a notice (the “Tenant Notice”) in the form attached hereto as
Exhibit J, which Purchaser shall send to each tenant under each of the Leases promptly after the Closing, informing such tenant or other party of the sale of the Property and of the assignment to Purchaser of Seller’s
interest in, and obligations under, the Leases (including, if applicable, any Security Deposits), and directing that all Rent, and other sums payable after the Closing under each such Lease be paid as set forth in the notice; 
  
 (f) in the event that any representation or warranty of
Seller set forth in Section 5.1 hereof needs to be modified due to changes since the Effective Date, deliver to Purchaser a certificate, dated as of the Closing Date and executed on behalf of Seller by a duly authorized representative thereof,
identifying any such representation or warranty which is no longer true and correct explaining the state of facts giving rise to the change (the “Seller Representation Certificate”). In no event shall Seller be liable to
Purchaser for, or be deemed to be in default hereunder by reason of, any breach of representation or warranty which results from any change that (x) occurs between the Effective Date and the Closing Date and (y) is expressly permitted
under the terms of this Agreement or is beyond the reasonable control of Seller to prevent; 
  
 (g) deliver to Purchaser such evidence as the Title Company may reasonably require as to the authority of the person or persons executing
documents on behalf of Seller; 
  
 (h) deliver to
Purchaser certificates in the form attached hereto as Exhibit K duly executed by Seller stating that Seller is not a “foreign person” as defined in the Federal Foreign Investment in Real Property Tax Act of 1980;

  
 (i) deliver to Purchaser (by making available
to Purchaser in the management offices of the Improvements) the Leases and the Operating Agreements to the extent the same are in Seller’s possession, together with all leasing and property files and records (including manuals) which are used
in connection with the continued operation, leasing and maintenance of the Property, but excluding any Confidential Documents; 
  
 (j) deliver such affidavits as may be customarily and reasonably required by the Title Company, in a form reasonably acceptable to Seller;

  
 (k) deliver to Purchaser possession and
occupancy of the Real Property, subject to the applicable Permitted Exceptions; 
  

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 (l) execute a closing and proration statement (the “Closing
Statement”); and 
  
 (m) deliver
such additional documents as shall be reasonably required to consummate the transaction contemplated by this Agreement. 
  
 4.3. Purchaser’s Obligations at Closing. At Closing, Purchaser shall: 
  
 (a) pay to Seller the full amount of the Purchase Price (less the Deposit), as increased or decreased by
prorations and adjustments as herein provided, in immediately available wire transferred funds pursuant to Section 1.3 hereof; 
  
 (b) join Seller in execution of the Assignment of Leases, Assignment of Contracts, Tenant Notices and the Closing Statement; 

 
 (c) in the event that any representation or warranty of
Purchaser set forth in Section 5.6 hereof needs to be modified due to changes since the Effective Date, deliver to Seller a certificate, dated as of the Closing Date and executed on behalf of Purchaser by a duly authorized representative
thereof, identifying any such representation or warranty which is no longer true and correct and explaining the state of facts giving rise to the change. In no event shall Purchaser be liable to Seller for, or be deemed to be in default hereunder by
reason of, any breach of representation or warranty set forth in Section 5.6 hereof which results from any change that (i) occurs between the Effective Date and the Closing Date and (ii) is expressly permitted under the terms of this
Agreement or is beyond the reasonable control of Purchaser to prevent; 
  
 (d) deliver to Seller such evidence as the Title Company may reasonably require as to the authority of the person or persons executing documents on behalf of Purchaser; 
  
 (e) deliver such affidavits as may be customarily and
reasonably required by the Title Company, in a form reasonably acceptable to Purchaser; and 
  
 (f) deliver such additional documents as shall be reasonably required to consummate the transaction contemplated by this Agreement.

  
 4.4. Credits and Prorations. 
  
 (a) All income and expenses of the Property shall be
apportioned as of 12:01 a.m., on the Closing Date, as if Purchaser were vested with title to the Property during the entire day upon which Closing occurs. Such prorated items shall include without limitation the following: 
  
 (i) all Rent; 
  
 (ii) taxes and assessments (including personal property
taxes on the Personal Property) levied against the Property; 
  

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 (iii) utility charges for which Seller is liable, if any, such charges to be apportioned
at Closing on the basis of the most recent meter reading occurring prior to Closing (dated not more than fifteen (15) days prior to Closing) or, if unmetered, on the basis of a current bill for each such utility; 
  
 (iv) all amounts payable by Seller under the Operating
Agreements; and 
  
 (v) any other operating
expenses or other items pertaining to the Property which are customarily prorated between a purchaser and a seller in the county in which the Property is located. 
  
 (b) In addition to and notwithstanding anything contained in Section 4.4(a) hereof: 
  
 (i) At Closing, (A) Seller shall, at Seller’s
option, either deliver to Purchaser the Security Deposits (and assign its interest in any letters of credit held as Security Deposits) or credit to the account of Purchaser the amount of such Security Deposits, provided that Seller shall not apply
Security Deposits against delinquent Rents or otherwise, and (B) Purchaser shall credit to the account of Seller all refundable cash or other deposits posted with utility companies serving the Property to the extent transferred to Seller on the
utility company’s records, or, at Seller’s option, Seller shall be entitled to receive and retain such refundable cash and deposits; 
  
 (ii) Any taxes paid at or prior to Closing shall be prorated based upon the amounts actually paid. Seller shall be charged at Closing an
amount equal to that portion of such taxes and assessments which relates to the period before Closing and Purchaser shall pay the taxes and assessments prior to their becoming delinquent and on or prior to the date that will maximize any discounts
or reductions in said taxes and assessments on account of early payment thereof. Any such apportionment made with respect to a tax year for which the tax rate or assessed valuation, or both, have not yet been fixed shall be based upon the tax rate
and/or assessed valuation last fixed. To the extent that the actual taxes and assessments for the current year differ from the amount apportioned at Closing, the parties shall make all necessary adjustments by appropriate payments between themselves
within thirty (30) days after such amounts are determined following Closing, subject to the provisions of Section 4.4(e) hereof; 
  
 (iii) Non-delinquent charges referred to in Section 4.4(a) hereof which are payable by any tenant to a third party shall not be
apportioned hereunder, and Purchaser shall accept title subject to any of such charges unpaid and Purchaser shall look solely to the tenant responsible therefor for the payment of the same. If Seller shall have paid any of such charges on behalf of
any tenant, and shall not have been reimbursed therefor by the time of Closing, Purchaser shall deliver the reimbursement due Seller upon receipt of the same from the tenant(s) who are responsible for payment; 
  

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 (iv) As to utility charges referred to in Section 4.4(a)(iii) hereof, Seller may on
notice to Purchaser elect to pay one or more of all of said items accrued to the date hereinabove fixed for apportionment directly to the person or entity entitled thereto, and to the extent Seller so elects, such item shall not be apportioned
hereunder, and Seller shall pay such item directly on or before the Closing Date; 
  
 (v) Purchaser shall be responsible for the payment of (A) all Tenant Inducement Costs (as hereinafter defined) and Commissions (as
hereinafter defined) which become due and payable (whether before or after Closing) as a result of any new Leases, or any renewals, amendments or expansions of existing Leases, signed during the Lease Approval Period (as hereinafter defined) or as a
result of any options exercised by tenants during the Lease Approval Period and, if required, approved or deemed approved in accordance with Section 5.5 hereof; (B) all Tenant Inducement Costs and Commissions as a result of new leases, or
renewals, amendments or expansions of existing Leases, signed or entered into from and after the Closing Date or as a result of any options exercised by tenants after the Closing Date and (C) all Tenant Inducement Costs and Commissions listed
on Exhibit P attached hereto. If, as of the Closing Date, Seller shall have paid any Tenant Inducement Costs or Commissions for which Purchaser is responsible pursuant to the foregoing provisions, Purchaser shall reimburse Seller
therefor at Closing. As used herein (a) ”Commissions” shall mean all brokerage commissions, finder’s fees or other similar compensation due or payable in connection with the applicable lease and (b) term
“Tenant Inducement Costs” shall mean any out-of-pocket payments required under a Lease to be paid by the landlord thereunder to or for the benefit of the tenant thereunder which is in the nature of a tenant inducement,
including specifically, without limitation, tenant improvement costs, lease buyout costs, and moving, design, refurbishment and club membership allowances. The term “Tenant Inducement Costs” shall not include loss of income resulting from
any free rental period, it being agreed that Seller shall bear the loss resulting from any free rental period until the Closing Date and that Purchaser shall bear such loss from and after the Closing Date. For purposes hereof, the term
“Lease Approval Period” shall mean the period from the Effective Date until the Closing Date; 
  
 (vi) Purchaser shall be responsible for determining the actual amount of Reimbursable Tenant Expenses for the year in which the Closing
occurs, Purchaser shall use reasonable efforts to collect from the tenants of the Property any underpayment of Reimbursable Tenant Expenses and pay to Seller Seller’s share of said underpayment promptly upon collection thereof. Likewise any
overpayments shall similarly be adjusted and Seller shall refund Purchaser its pro rata share of such overpayments to the extent such overpayments have not previously been refunded to tenants or credited to Purchaser at Closing; 
  
 (vii) Unpaid and delinquent Rent shall be adjusted and
prorated on an “if, as and when-collected” basis. Unpaid and delinquent Rent collected by Seller and Purchaser after the Closing Date shall be delivered as follows: (a) if Seller 
  

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 collects any unpaid or delinquent Rent for the Property, Seller shall, within fifteen (15) days
after the receipt thereof, deliver to Purchaser any such Rent which Purchaser is entitled to hereunder relating to the Closing Date and any period thereafter, and (b) if Purchaser collects any unpaid or delinquent Rent from the Property,
Purchaser shall, within fifteen (15) days after the receipt thereof, deliver to Seller any such Rent which Seller is entitled to hereunder relating to the period prior to the Closing Date. Seller and Purchaser agree that (i) all Rent
received by Seller or Purchaser after the Closing Date shall be applied first to reasonable costs of collection, then to current Rent, and then to delinquent Rent, if any, in the inverse order of their maturity. Purchaser will make a good faith
effort after Closing to collect all Rents in the usual course of Purchaser’s operation of the Property, but Purchaser will not be obligated to institute any lawsuit or other collection procedures to collect delinquent Rents. Seller shall not
attempt to collect any delinquent Rents owed Seller and shall not institute any lawsuit or collection procedures, and may not evict any tenant. In the event that there shall be any Rent or other charges under any Leases which, although relating to a
period prior to Closing, do not become due and payable until after Closing or are paid prior to Closing but are subject to adjustment after Closing (such as Reimbursable Tenant Expenses), then any Rents or charges of such type received by Purchaser
or its agents or Seller or its agents subsequent to Closing shall, to the extent applicable to a period extending through the Closing, be prorated between Seller and Purchaser as of Closing, with each party promptly remitting to the other amounts
due as a result of such proration; 
  
 (viii)
Purchaser acknowledges that the rent under the USPS Lease is paid “in arrears” and consequently, notwithstanding the terms of Section 4.4(b)(vii) above, all rents payable under the USPS Lease shall be prorated on an accrual (rather
than a cash) basis so that Seller shall receive a credit for any rents under the USPS Lease which are attributable to the period on or prior to the Closing Date even though such rents may be paid after the Closing Date; and 
  
 (c) Seller has filed and may continue to prosecute an appeal
of the real property tax assessment for the tax years prior to the Closing Date, and may take related action which Seller deems appropriate in connection therewith. Purchaser shall reasonably cooperate but have no obligation to fund or participate
in such appeal with Seller in connection with such appeal and collection of a refund of real property taxes paid. Seller owns and holds all right, title and interest in and to such appeal and refund, and all amounts payable in connection therewith
shall be paid directly to Seller by the applicable authorities. If such refund or any part thereof is received by Purchaser, Purchaser shall promptly pay such amount to Seller. Any refund received by Seller shall be distributed as follows: first, to
reimburse Seller for all costs incurred in connection with the appeal; second, with respect to refunds payable to tenants of the real Property pursuant to the Leases, to such tenants in accordance with the terms of such Leases; and third, to Seller
to the extent such appeal covers the period as of the Closing and thereafter. If and to the extent any such appeal covers the period after the Closing, Purchaser shall have the right to participate in such appeal. 
  

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 (d) For a period of three (3) years after the Closing and upon reasonable advance
written notice, Purchaser shall allow Seller and its agents and representatives access without charge to all files, records and documents delivered to Purchaser at the Closing, upon reasonable advance notice and at all reasonable times, to examine
and, at Seller’s expense make copies of any and all such files, records and documents, which right shall survive the Closing; 
  
 (e) Except as otherwise provided herein, any revenue or expense amount which cannot be ascertained with certainty as of Closing shall be
prorated on the basis of the parties’ reasonable estimates of such amount, and shall be the subject of a final proration thirty (30) days after Closing, or as soon thereafter as the precise amounts can be ascertained; but in no event shall
any reproration under this Agreement, other than with respect to taxes and assessments pursuant to Section 4.4(b)(ii) above and Reimbursable Tenant Expenses pursuant to Section 4.4(b)(vi) above, occur more than 180 days after the Closing.
Purchaser shall promptly notify Seller when it becomes aware that any such estimated amount has been ascertained. Once all revenue and expense amounts have been ascertained, Purchaser shall prepare, and certify as correct, a final proration
statement which shall be subject to Seller’s approval. Upon Seller’s acceptance and approval of any final proration statement submitted by Purchaser, such statement shall be conclusively deemed to be accurate and final. Notwithstanding
anything contained in this Section 4.4 to the contrary, Seller shall have no obligation to pay (and Purchaser shall not receive a credit at Closing for) taxes (including real estate taxes, personal property and special assessments) and/or
operating expenses to the extent that: (i) Purchaser is entitled after Closing to reimbursement of taxes and/or operating expenses, regardless of whether Purchaser actually collects such reimbursements from such tenants, (ii) such
operating expenses are paid directly by such tenants, or (iii) Purchaser shall have the right to recover any increase in taxes or operating expenses from such tenants regardless of whether Purchaser actually collects such increased taxes and/or
operating expenses from such tenants. Furthermore, Seller and Purchaser acknowledge and agree that (a) as between Purchaser and Seller, Purchaser shall be responsible for payment of all such taxes and operating expenses accruing after Closing,
and (b) the burden of collecting such reimbursements from such tenants shall be solely on Purchaser. 
  
 (f) From and after Closing, Seller shall cooperate reasonably with Purchaser (but at no cost to Seller) in order to transfer the
Property’s accounting information currently located in Seller’s computer software to Purchaser’s computers. 
  
 (g) Subject to Section 4.4(e) hereof, the provisions of this Section 4.4 shall survive Closing. 
  
 4.5. Transaction Taxes and Closing Costs. 
  
 (a) Seller and Purchaser shall execute such returns,
questionnaires and other documents as shall be required with regard to all applicable real property transaction taxes imposed by applicable federal, state or local law or ordinance; 
  

 11 

 (b) Seller shall pay the fees of any counsel representing Seller in connection with this
transaction. Seller shall also pay the following costs and expenses: (i) one-half (1/2) of the escrow fee, if any which may be charged by the Escrow Agent or Title Company; (ii) one-half of any transfer tax, sales tax, documentary
stamp tax or similar tax which becomes payable by reason of the transfer of the Property and (iii) the fees for Seller’s Broker (as hereinafter defined); 
  
 (c) Purchaser shall pay the fees of any counsel representing Purchaser in connection with this transaction.
Purchaser shall also pay the following costs and expenses: (i) one half (1/2) of the escrow fee, if any, which may be charged by the Escrow Agent or Title Company; (ii) the cost of updating the Survey (if any); (iii) the fees for
recording the Deed; (iv) the premium for the Title Policy to be issued to Purchaser by the Title Company at Closing and all endorsements thereto; (v) one-half of any transfer tax, sales tax, documentary stamp tax or similar tax which
becomes payable by reason of the transfer of the Property; (vi) all costs and expenses incurred in connection with the transfer of any transferable permits, warranties, licenses or non-cash security deposits in connection with the ownership or
operation of the Property; and (vii) all costs and expenses associated with Purchaser’s financing and the fee for Purchaser’s Broker (as hereinafter defined); 
  
 (d) The Personal Property is included in this sale without charge, and Purchaser shall pay the amount of any
and all sales or similar taxes payable in connection with the transfer of the Personal Property. Purchaser and Seller shall execute and deliver any tax returns required in connection therewith; 
  
 (e) All costs and expenses incident to this transaction and
the closing thereof, and not specifically described above, shall be paid by the party incurring same; and 
  
 (f) The provisions of this Section 4.5 shall survive the Closing. 
  
 4.6. Conditions Precedent to Obligation of Purchaser. The obligation of Purchaser to consummate the
transaction hereunder shall be subject to the fulfillment on or before the Closing Date of all of the following conditions, any or all of which may be waived by Purchaser in its sole discretion: 
  
 (a) Seller shall have delivered to Purchaser all of the
items required to be delivered to Purchaser pursuant to the terms of this Agreement, including but not limited to, those provided for in Section 4.2 hereof; 
  
 (b) All of the representations and warranties of Seller contained in this Agreement shall be true and
correct in all material respects when made and as of the Closing Date. Notwithstanding the foregoing, unless the Seller Representation Certificate discloses the existence of an event or condition with respect to the Property (other than any loss or
damage to the Property caused by fire or other casualty of condemnation which shall be governed by the terms of Article VII hereof) the results of which may reasonably be expected to have an adverse effect upon the value of the Property (in the
aggregate) which would, in the reasonable opinion of an investment sales 
  

 12 

 broker with experience in the vicinity of the Property reasonably selected by Purchaser and Seller, be
equal to or greater than One Million and No/100 Dollars ($1,000,000.00) ( a “Material Adverse Effect”), the condition set forth in this Section 4.6(b) shall be deemed to be satisfied; 
  
 (c) Seller shall have performed and observed in all material
respects all covenants and agreements of this Agreement to be performed and observed by Seller as of the Closing Date; 
  
 (d) Issuance by the Title Company and/or another national title company of the Title Policy; and 
  
 (e) On or prior to Closing, Purchaser shall have received
Approved Estoppels, from tenants leasing sixty-five percent (65%) of the leased area of the Improvements (the “Occupied Space”), exclusive of any portion leased to Purchaser or its affiliates for which no estoppel
certificate shall be required, provided, however, Seller may, in lieu of obtaining an Approved Estoppel from a tenant provide Purchaser with an estoppel certificate (a “Seller Estoppel Certificate”) executed by Seller in the
form of Exhibit E-1 attached hereto for Leases demising up to ten percent (10%) of the Occupied Space, exclusive of any portion leased to Purchaser or its affiliates for which no estoppel certificate shall be required. Purchaser
agrees that an estoppel certificate shall be deemed to be an Approved Estoppel even though it may not be in the form or substance sent to the tenant pursuant to Section 3.4 provided that the estoppel certificate (i) contains the specific
information (as opposed to a general or “catch all” requirement), if any, required by the applicable lease, or (ii) that the departures therefrom reflect facts or circumstances that are disclosed in writing by Seller or that were
known to Purchaser through written reports obtained by or through Purchaser as a part of its inspection of Property. If Seller delivers a Seller Estoppel Certificate to Purchaser with respect to a particular tenant and thereafter Purchaser receives
an Approved Estoppel from such tenant which confirms the accuracy of the certifications set forth in such Seller Estoppel Certificate, then all obligations and liabilities of Seller under such Seller Estoppel Certificate shall terminate and be of no
force and effect and Purchaser shall cancel and return such Seller Estoppel Certificate to Seller. 
  
 If any of the conditions to Purchaser’s obligations under Section 4.6 shall fail to occur and such failure is not otherwise a default under this
Agreement (in which event Purchaser would be afforded the rights under Section 6.2 hereof), then Purchaser may, as long as Purchaser is not in default hereunder, and as its sole and exclusive remedy, terminate this Agreement by written notice
to Seller, in which event the Deposit shall be promptly returned to Purchaser and neither party shall have any further rights or obligations hereunder (except for those obligations of either party that expressly survive the termination of this
Agreement pursuant to the other provisions of this Agreement). 
  
 4.7. Conditions Precedent to Obligation of Seller. The obligation of Seller to consummate the transaction hereunder shall be subject to the fulfillment on or before the Closing Date of all of the following conditions, any or
all of which may be waived by Seller in its sole discretion: 
  
 (a) Seller shall have received the Purchase Price as adjusted as provided herein, pursuant to and payable in the manner provided for in this Agreement; 
  

 13 

 (b) Purchaser shall have delivered to Seller all of the items required to be delivered to
Seller pursuant to the terms of this Agreement, including but not limited to, those provided for in Section 4.3 hereof; 
  
 (c) All of the representations and warranties of Purchaser contained in this Agreement shall be true and correct in all material respects
when made and as of the Closing Date; and 
  
 (d)
Purchaser shall have performed and observed in all material respects all covenants and agreements of this Agreement to be performed and observed by Purchaser as of the Closing Date. 
  
 ARTICLE 5 
  
 REPRESENTATIONS, WARRANTIES AND COVENANTS 
  
 5.1. Representations and Warranties of Seller. Seller hereby makes the following representations and warranties to Purchaser as of the
Effective Date, which representations and warranties shall be deemed to have been made again as of the Closing, subject to Section 4.6(b) hereof: 
  
 (a) Organization and Authority. Seller has been duly organized and is validly existing under the laws of the State of
California and is authorized to do business in the Commonwealth of Virginia. Seller has the full right and authority to enter into this Agreement and to transfer all of the Property and to consummate or cause to be consummated the transaction
contemplated by this Agreement. The person signing this Agreement on behalf of Seller is authorized to do so. 
  
 (b) Operating Agreements. The Operating Agreements listed on Exhibit D are all of the agreements
concerning the operation and maintenance of the Real Property entered into by or on behalf of Seller and affecting the Real Property, except those operating agreements that are not assignable or are to be terminated by Seller within thirty
(30) days after the Closing, and except any agreement with Seller’s property manager, which shall be terminated by Seller as of the Closing Date. 
  
 (c) Lease Brokerage. To Seller’s knowledge, there are no agreements with brokers providing for the payment by Seller
or, to Seller’s knowledge, Seller’s predecessors-in-interest under the Leases, of Commissions with respect to any Leases in effect on the date hereof (the “Existing Leases”), except as disclosed in
Exhibit O hereto. 
  
 (d)
Condemnation. To Seller’s knowledge, Seller has received no written notice of any condemnation proceedings relating to the Property, and to Seller’s knowledge no condemnation or eminent domain is threatened. 
  

 14 

 (e) Litigation. To Seller’s knowledge, except as set forth on
Exhibit M attached hereto, there is no litigation which has been filed or threatened in writing against Seller that arises out of the ownership or operation of the Property. 
  
 (f) Violations. To Seller’s knowledge,
except as set forth on Exhibit N attached hereto, Seller has not received any written notice that the Property is subject to any material violation or material failure to comply with any law or municipal ordinance. 
  
 (g) Leases. To Seller’s knowledge, the
list of Existing Leases attached hereto as Exhibit C is accurate in all material respects. 
  
 5.2. Knowledge Defined. References to the “knowledge” of Seller shall refer only to the current actual knowledge of
the Designated Employees (as hereinafter defined) of Seller, and shall not be construed, by imputation or otherwise, to refer to the knowledge of Seller or any affiliate of Seller, to any property manager, or to any other officer, agent, manager,
representative or employee of Seller or any affiliate thereof or to impose upon such Designated Employees any duty to investigate the matter to which such actual knowledge, or the absence thereof, pertains. As used herein, the term
“Designated Employees” shall refer to Evan Boris and (b) Mario Silva. Furthermore, Seller’s representations and warranties shall be deemed to be modified to reflect any facts or circumstances disclosed in the Tenant
Estoppels received by Purchaser. Notwithstanding anything to the contrary set forth in this Agreement, the Designated Employees shall not have any personal liability or obligation whatsoever with respect to any matters set forth in this Agreement or
any of Seller’s representations and/or warranties herein being or becoming untrue, inaccurate or incomplete. 
  
 5.3. Legal Requirements Defined. References to “Legal Requirements” shall mean all laws, statutes, codes, acts,
ordinances, orders, judgments, decrees, injunctions, rules, regulations, pemits, licenses, authorizations, directions and requirements of governmental authorities or quasi-governmental authorities, which now or at any time hereafter exercise
jurisdiction over the Property, or any use, operation or condition of the Property. 
  
 5.4. Survival of Seller’s Representations, Warranties and Other Obligations. The representations and warranties of Seller set forth in Section 5.1 hereof as updated as of the Closing in
accordance with the terms of this Agreement and in any Seller Estoppel Certificate, shall survive Closing until the date that is one hundred eighty (180) days after the Closing Date (the “Survival Expiration Date”). No
claim for a breach of any representation, warranty, covenant or agreement of Seller under this Agreement or any other instrument (including, without limitation, any Seller Estoppel Certificate) delivered to Purchaser under or pursuant to this
Agreement shall be actionable or payable if the breach in question results from or is based on a condition, state of facts or other matter which was known to Purchaser prior to Closing (including, without limitation, pursuant to the terms of
Section 4.2(f) above or if the truth of any matter is confirmed in any Tenant Estoppel or other estoppel certificate received by Purchaser from a third party). Seller shall have no liability to Purchaser for a breach of any representation,
warranty, covenant or agreement (a) unless the valid claims for all such breaches collectively aggregate more than Two Hundred and Fifty Thousand and No/100 Dollars ($250,000.00) (the “Floor”) in which event the full
amount of such valid claims shall be actionable up to, but not in excess of One Million and No/100 Dollars ($1,000,000.00) (the “Cap”) and (b) except as 
  

 15 

 otherwise provided herein, unless written notice containing a description of the specific nature of such breach shall
have been given by Purchaser to Seller prior to the expiration of and an action shall have been commenced by Purchaser against Seller within thirty (30) days after the Survival Expiration Date. Purchaser agrees to first seek recovery under any
insurance policies, Operating Agreements, Tenant Estoppels and Leases prior to seeking recovery from Seller, and Seller shall not be liable to Purchaser if Purchaser’s claim is satisfied from such sources. In no event shall Seller be liable for
any consequential or punitive damages or for any damages in excess of the Cap. 
  
 5.5. Covenants of Seller. Seller hereby covenants with Purchaser as follows: 
  
 (a) From the Effective Date hereof until the Closing or earlier termination of this Agreement, Seller shall use reasonable efforts to
operate and maintain the Property in a manner generally consistent with the manner in which Seller has operated and maintained the Property prior to the date hereof; 
  
 (b) Except as provided in this Section 5.5(b), a copy of any amendment, renewal or expansion of an
existing Lease or of any new Lease which Seller in good faith wishes to execute between the Effective Date and the Closing Date will be submitted to Purchaser prior to execution by Seller. Except as provided above, while this Agreement is in effect,
Seller shall not enter into any new Lease or amend any existing Lease without the approval of Purchaser, such approval not to be unreasonably withheld, delayed or conditioned. Purchaser agrees to notify Seller in writing within five
(5) business days after its receipt thereof of either its approval or disapproval thereof, including all Tenant Inducement Costs and Commissions to be incurred in connection therewith. In the event Purchaser fails to notify Seller in writing of
its approval or disapproval within the five (5) business day period set forth above, Purchaser shall be deemed to have approved such new Lease, amendment, renewal or expansion. At Closing, Purchaser shall reimburse Seller for any Tenant
Inducement Costs, Commissions or other reasonable expenses, including reasonable legal fees, incurred by Seller pursuant to an amendment, a renewal, an expansion or a new Lease approved (or deemed approved) by Purchaser. Notwithstanding the
foregoing, Purchaser shall have no right to approve any amendment to an Existing Lease entered into by Seller which evidences the exercise by a Tenant of a right or option granted to such Tenant in its Lease. 
  
 (c) Seller shall notify Purchaser promptly if Seller becomes
aware of any transaction or occurrence prior to the Closing Date which would affect the truth or accuracy of any representation or warranty of Seller contained in Section 5.1 hereof in a manner that would have a Material Adverse Effect and
which Seller does not, in its reasonable opinion, believe can be cured prior to the Closing Date. 
  
 (d) Seller shall keep the Improvements insured against fire or other hazards (including rent loss insurance) on terms no less favorable
than currently existing. 
  
 (e) Seller shall
give a written notice of termination for any of the Operating Agreements required to be terminated by Purchaser by written notice given to Seller no later than two (2) business days prior to Closing which are terminable without cost or

  

 16 

 penalty to Seller, it being understood that Purchaser shall be responsible to assume all such Operating
Agreements which are not terminable by Seller without cost or penalty. Seller further agrees that Seller shall not enter into any new Operating Agreements or extend, renew or materially modify any existing Operating Agreements except those that are
terminable by Seller at will without penalty or cost effective as of Closing. 
  
 5.6. Representations and Warranties of Purchaser. Purchaser hereby makes the following representations and warranties to Seller as of the Effective Date, which representations and warranties shall be
deemed to have been made again as of the Closing, subject to Section 4.3(c) hereof: 
  
 (a) Organization and Authority. Purchaser has been duly incorporated and is validly existing under the laws of Delaware.
Purchaser has the full right and authority to enter into this Agreement and to consummate or cause to be consummated the transaction contemplated by this Agreement. The person signing this Agreement on behalf of Purchaser is authorized to do so; and

  
 (b) Pending Actions. To
Purchaser’s knowledge, there is no action, suit, arbitration, unsatisfied order or judgment, government investigation or proceeding pending against Purchaser. 
  
 5.7. Survival of Purchaser’s Representations and Warranties. The representations and warranties of
Purchaser set forth in Section 5.6 hereof as updated as of the Closing Date in accordance with the terms of this Agreement, shall survive Closing for a period of one hundred eighty (180) days. Purchaser shall have no liability to Seller
for a breach of any representation or warranty unless written notice containing a description of the specific nature of such breach shall have been given by Seller to Purchaser prior to the expiration of said one hundred eighty (180) days and
an action shall have been commenced by Seller against Purchaser within thirty (30) days after such one hundred eighty (180) day period. 
  
 ARTICLE 6 
  
 DEFAULT 
  
 6.1. Default by Purchaser. If the Purchaser fails to close the purchase of the Property when legally required to do so, Seller shall be
entitled, as its sole remedy, to terminate this Agreement and receive the Deposit as liquidated damages for the breach of this Agreement, it being agreed between the parties hereto that the actual damages to Seller in the event of such breach are
impractical to ascertain and the amount of the Deposit is a reasonable estimate thereof. 
  
 6.2. Default by Seller. In the event Seller fails to close the sale of the Property when legally required to do so, Purchaser shall be entitled, as its sole remedy, either (a) to receive the return
of the Deposit, which return shall operate to terminate this Agreement and release Seller and from any and all liability hereunder, or (b) to enforce specific performance of Seller’s obligations to Purchaser in accordance with the terms of
this Agreement. Purchaser expressly waives its rights to seek damages in the event of Seller’s default hereunder. Purchaser shall be 
  

 17 

 deemed to have elected to terminate this Agreement and receive back the Deposit if Purchaser fails to file suit for
specific performance against Seller in a court having jurisdiction in the county and state in which the Property is located, on or before sixty (60) days following the date upon which Closing was to have occurred. 
  
 6.3. Recoverable Damages. Notwithstanding Sections 6.1 and
6.2 hereof, in no event shall the provisions of Sections 6.1 and 6.2 limit the provisions of Section 10.17 or the damages recoverable by either party against the other party due to the other party’s obligation to indemnify such party
in accordance with this Agreement. 
  
 ARTICLE 7

  
 RISK OF LOSS 
  
 7.1. Minor Damage. In the event of loss or damage to the
Property or any portion thereof which is not “Major” (as hereinafter defined), this Agreement shall remain in full force and effect provided that Seller shall assign to Purchaser all of Seller’s right, title and interest in and to any
claims and proceeds Seller may have with respect to any casualty insurance policies or condemnation awards relating to the premises in question, which assignment shall be confirmed and agreed to by either the insurer or the condemning authority, as
applicable if such confirmation or agreement is required to make the assignment legally effective. The Purchase Price shall be reduced by an amount equal to the lesser of the deductible amount under Seller’s insurance policy(s) or, if the loss
is not covered by Seller’s insurance policy(s), then the Purchase Price shall be reduced by the cost of completing the repairs. Upon Closing, full risk of loss with respect to the Property shall pass to Purchaser. 
  
 7.2. Major Damage. In the event of a “Major” loss or
damage, Purchaser may terminate this Agreement by written notice to the Seller, in which event the Deposit shall be returned to Purchaser. If Purchaser elects not to terminate this Agreement within ten (10) days after Seller sends Purchaser
written notice of the occurrence of such Major loss or damage or threatened Major loss or damage in the case of condemnation or eminent domain proceedings (which notice shall state the cost of repair or restoration thereof as opined by an architect
in accordance with Section 7.3 hereof), then Seller and Purchaser shall be deemed to have elected to proceed with Closing, in which event Seller shall assign to Purchaser all of Seller’s right, title and interest in and to any claims
and proceeds Seller may have with respect to any casualty insurance policies or condemnation awards and the proceeds of any rent loss insurance relating to the premises in question, which assignment shall be confirmed and agreed to by either the
insurer(s) or the condemning authority, as applicable if such confirmation or agreement is required to make the assignment legally effective. The Purchase Price shall be reduced by an amount equal to the deductible amount under Seller’s
insurance policy(s). Upon Closing, full risk of loss with respect to the Property shall pass to Purchaser. 
  
 7.3. Definition of “Major” Loss or Damage. For purposes of Sections 7.1 and 7.2, “Major” loss or
damage refers to the following: (a) loss or damage to the Property hereof such that the cost of repairing or restoring the premises in question to substantially the same condition which existed prior to the event of damage, in the opinion of an
architect selected by Seller and reasonably approved by Purchaser, either (i) would be equal to or greater than Six Million and 
  

 18 

 No/100 Dollars ($6,000,000.00), or (ii) could not reasonably be repaired or restored within ninety (90) days
after the date of casualty, or (b) any loss due to a condemnation or threatened condemnation which could or will permanently and materially impair the current and intended use of the Property. If Purchaser does not give written notice to Seller
of Purchaser’s reasons for disapproving an architect within five (5) business days after receipt of notice of the proposed architect, Purchaser shall be deemed to have approved the architect selected by Seller. 
  
 ARTICLE 8 
  
 COMMISSIONS 
  
 8.1. Brokerage Commissions. With respect to the transaction
contemplated by this Agreement, Seller represents that its sole broker is Holliday Fenoglio Fowler, L.P. (“Seller’s Broker”), whose commissions shall be paid by Seller and Seller shall protect, indemnify, defend and hold
Purchaser harmless form and against any claims made by Seller’s Broker against Purchaser in connection with the transaction contemplated in this Agreement. Purchaser represents that it has retained Trammell Crow Services, Inc.
(“Purchaser’s Broker”) in connection with the transaction contemplated in this Agreement and Purchaser shall pay any commission owing to Purchaser’s Broker and Purchaser shall protect, indemnify, defend and hold
Seller harmless from and against any claims made by Purchaser’s Broker against Seller in connection with the transaction contemplated in this Agreement. In addition, each party hereto agrees that if any person or entity, other than the
Seller’s Broker or Purchaser’s Broker, makes a claim for brokerage commissions or finder’s fees related to the sale of the Property by Seller to Purchaser, and such claim is made by, through or on account of any acts or alleged acts
of said party or its representatives, said party will protect, indemnify, defend and hold the other party free and harmless from and against any and all loss, liability, cost, damage and expense (including reasonable attorneys’ fees) in
connection therewith. The provisions of this paragraph shall survive Closing or any termination of this Agreement. 
  
 ARTICLE 9 
  
 DISCLAIMERS AND WAIVERS 
  
 9.1. No Reliance on Documents. Except as expressly stated herein or in the documents to be executed by Seller and delivered to Purchaser in connection with the Closing, Seller makes no representation or warranty as to the
truth, accuracy or completeness of any materials, data or information delivered by Seller or its brokers or agents to Purchaser in connection with the transaction contemplated hereby. Except as expressly stated herein or in the documents to be
executed by Seller and delivered to Purchaser in connection with the Closing, Purchaser acknowledges and agrees that all materials, data and information delivered by Seller to Purchaser in connection with the transaction contemplated hereby are
provided to Purchaser as a convenience only and that any reliance on or use of such materials, data or information by Purchaser shall be at the sole risk of Purchaser, except as otherwise expressly stated herein. Neither Seller, nor any affiliate of
Seller, nor the person or entity which prepared any report or reports delivered by Seller to Purchaser shall have any liability to Purchaser for any inaccuracy in or omission from any such reports. 
  

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 9.2. AS-IS SALE; DISCLAIMERS. EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT OR IN THE
DOCUMENTS TO BE EXECUTED BY SELLER AND DELIVERED TO PURCHASER IN CONNECTION WITH THE CLOSING, IT IS UNDERSTOOD AND AGREED THAT SELLER IS NOT MAKING AND HAS NOT AT ANY TIME MADE ANY WARRANTIES OR REPRESENTATIONS OF ANY KIND OR CHARACTER, EXPRESS OR
IMPLIED, WITH RESPECT TO THE PROPERTY, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OR REPRESENTATIONS AS TO HABITABILITY, MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. 
  
 PURCHASER ACKNOWLEDGES AND AGREES THAT UPON CLOSING SELLER SHALL SELL AND CONVEY TO PURCHASER AND PURCHASER SHALL ACCEPT THE PROPERTY
“AS IS, WHERE IS, WITH ALL FAULTS.” EXCEPT TO THE EXTENT EXPRESSLY PROVIDED OTHERWISE IN THIS AGREEMENT OR THE DOCUMENTS EXECUTED AND DELIVERED AT CLOSING TO CONSUMMATE THIS AGREEMENT, PURCHASER HAS NOT RELIED AND WILL NOT RELY ON, AND
SELLER IS NOT LIABLE FOR OR BOUND BY, ANY EXPRESS OR IMPLIED WARRANTIES, GUARANTIES, STATEMENTS, REPRESENTATIONS OR INFORMATION PERTAINING TO THE PROPERTY OR RELATING THERETO (INCLUDING SPECIFICALLY, WITHOUT LIMITATION, OFFERING PACKAGES DISTRIBUTED
WITH RESPECT TO THE PROPERTY) MADE OR FURNISHED BY SELLER, THE MANAGERS OF THE PROPERTY, OR ANY REAL ESTATE BROKER OR AGENT REPRESENTING OR PURPORTING TO REPRESENT SELLER, TO WHOMEVER MADE OR GIVEN, DIRECTLY OR INDIRECTLY, ORALLY OR IN WRITING,
UNLESS SPECIFICALLY SET FORTH IN THIS AGREEMENT. 
  
 PURCHASER REPRESENTS TO
SELLER THAT PURCHASER HAS CONDUCTED, OR WILL CONDUCT PRIOR TO CLOSING, SUCH INVESTIGATIONS OF THE PROPERTY, INCLUDING BUT NOT LIMITED TO, THE PHYSICAL AND ENVIRONMENTAL CONDITIONS THEREOF, AS PURCHASER DEEMS NECESSARY OR DESIRABLE TO SATISFY ITSELF
AS TO THE CONDITION OF THE PROPERTY AND THE EXISTENCE OR NONEXISTENCE OR CURATIVE ACTION TO BE TAKEN WITH RESPECT TO ANY HAZARDOUS OR TOXIC SUBSTANCES ON OR DISCHARGED FROM THE PROPERTY, AND WILL RELY SOLELY UPON SAME AND NOT UPON ANY INFORMATION
PROVIDED BY OR ON BEHALF OF SELLER OR ITS AGENTS OR EMPLOYEES WITH RESPECT THERETO, OTHER THAN SUCH REPRESENTATIONS, WARRANTIES AND COVENANTS OF SELLER AS ARE EXPRESSLY SET FORTH IN THIS AGREEMENT OR THE DOCUMENTS EXECUTED AND DELIVERED AT CLOSING
TO CONSUMMATE THIS AGREEMENT. UPON CLOSING, PURCHASER SHALL ASSUME THE RISK THAT ADVERSE MATTERS, INCLUDING BUT NOT LIMITED TO, CONSTRUCTION DEFECTS AND ADVERSE PHYSICAL AND ENVIRONMENTAL CONDITIONS, MAY NOT HAVE BEEN REVEALED BY PURCHASER’S
INVESTIGATIONS AND PURCHASER, UPON CLOSING, SHALL BE DEEMED TO HAVE WAIVED, RELINQUISHED AND RELEASED SELLER (AND SELLER’S OFFICERS, DIRECTORS, SHAREHOLDERS, EMPLOYEES AND AGENTS) FROM AND AGAINST ANY AND ALL CLAIMS, DEMANDS, CAUSES OF ACTION
(INCLUDING CAUSES OF ACTION IN TORT), LOSSES, DAMAGES, LIABILITIES, COSTS AND EXPENSES (INCLUDING REASONABLE ATTORNEYS’ FEES) OF ANY AND EVERY KIND OR CHARACTER, KNOWN OR UNKNOWN, WHICH 
  

 20 

 PURCHASER MIGHT HAVE ASSERTED OR ALLEGED AGAINST SELLER (OR SELLER’S OFFICERS, DIRECTORS, SHAREHOLDERS, EMPLOYEES OR
AGENTS) AT ANY TIME BY REASON OF OR ARISING OUT OF ANY LATENT OR PATENT CONSTRUCTION DEFECTS OR PHYSICAL OR ENVIRONMENTAL CONDITIONS, VIOLATIONS OF ANY APPLICABLE LAWS AND ANY AND ALL OTHER ACTS, OMISSIONS, EVENTS, CIRCUMSTANCES OR MATTERS REGARDING
THE PROPERTY. 
  
 9.3. Survival of Disclaimers. The
provisions of this Article IX shall survive Closing or any termination of this Agreement. 
  
 ARTICLE 10 
  
 MISCELLANEOUS 
  
 10.1.
Confidentiality. Purchaser and Seller and their respective representatives shall hold in strictest confidence all data and information obtained with respect to the other party or its business, whether obtained before or after the
execution and delivery of this Agreement, and shall use its best efforts to not disclose the same to others; provided, however, that it is understood and agreed that such party may disclose such data and information to the employees, lenders,
consultants, accountants and attorneys of the other party provided that such persons agree to treat such data and information confidentially, provided, however, either party shall be permitted to make such disclosures as may be required in order to
comply with all financial reporting, securities laws and other Legal Requirements applicable to such party. In the event this Agreement is terminated or Purchaser fails to perform hereunder, Purchaser shall use its best efforts to promptly return to
Seller any statements, documents, schedules, exhibits or other written information obtained from Seller in connection with this Agreement or the transaction contemplated herein. Purchaser agrees that none of the written information obtained from
Seller in connection with this Agreement and the transactions contemplated herein will be used by Purchaser for any purpose other than evaluating a possible purchase of the Property or used in any way or manner detrimental to the interests of
Seller. In the event of a breach or threatened breach by either party or its agents or representatives of this Section 10.1, the other party shall be entitled to an injunction restraining such party or its agents or representatives from
disclosing, in whole or in part, such confidential information. Nothing herein shall be construed as prohibiting the aggrieved party from pursuing any other available remedy at law or in equity for such breach or threatened breach. The provisions of
this Section 10.1 shall survive Closing or any termination of this Agreement. 
  
 10.2. Public Disclosure. Prior to the Closing, any release to the public of information with respect to the sale contemplated herein or any matters set forth in this Agreement will be made only in the
form approved by Purchaser and Seller; provided, however, Seller and Purchaser shall be permitted to make such disclosures as may be required in order to comply with all financial reporting, securities laws and other Legal Requirements applicable to
Purchaser and Seller. For a period of ninety (90) days, following the Closing, Purchaser and Seller may disclose to the public information with respect to any matters set forth in this Agreement; provided, however, the disclosing party shall
deliver written notice to the non-disclosing party delivered not later than five (5) business days prior to such disclosure and such disclosure subject to the non-disclosing party’s reasonable approval. The provisions of this
Section 10.2 shall survive Closing or any termination of this Agreement. 
  

 21 

 10.3. Assignment. Subject to the provisions of this Section 10.3, the terms and
provisions of this Agreement are to apply to and bind the permitted successors and assigns of the parties hereto. Purchaser shall have the right, exercised by written notice to Seller delivered not later than five (5) business days prior to
Closing and subject to the Assignment Procedures, to assign its rights under this Agreement to one or more Affiliates of Purchaser which Affiliate(s) of Purchaser shall become the transferee(s) under each of the closing documents for the Property.
Except as set forth in the preceding sentence, Purchaser may not designate or nominate any other person or entity to become the transferee under any of the closing documents or assign its rights under this Agreement without first obtaining
Seller’s written approval, which approval may be granted or withheld in Seller’s sole discretion. In the event Purchaser intends to assign its rights hereunder the following shall apply (the “Assignment
Procedures”): (a) Purchaser and the proposed assignees shall execute an assignment and assumption of this Agreement in form and substance reasonably satisfactory to Seller pursuant to which Purchaser and each such assignee shall be
jointly and severally liable under this Agreement, and (b) in no event shall any assignment of this Agreement release or discharge Purchaser from any liability or obligation hereunder. “Affiliate” shall mean, with
respect to any specified entity, an entity that controls, is controlled by, or is under common control with such specified entity, with control meaning the power through the ownership of voting securities by contract or otherwise to direct the
management and policies of such entity. 
  
 10.4.
Notices. Any notice pursuant to this Agreement shall be given in writing by (a) personal delivery, (b) reputable overnight delivery service with proof of delivery, (c) United States Mail, postage prepaid, registered or
certified mail, return receipt requested, or (d) legible facsimile transmission, sent to the intended addressee at the address set forth below, or to such other address or to the attention of such other person as the addressee shall have
designated by written notice sent in accordance herewith, and shall be deemed to have been given upon receipt or refusal to accept delivery, or, in the case of facsimile transmission, as of the date of the facsimile transmission provided that an
original of such facsimile is also sent to the intended addressee by means described in clauses (a), (b) or (c) above. Unless changed in accordance with the preceding sentence, the addresses for notices given pursuant to this
Agreement shall be as follows: 
  

			
	If to Seller:	 	 c/o Trizec Properties, Inc.
 10 South Riverside
Plaza
 Suite 1100
 Chicago, Illinois 60606
 Attention: Evan M. Boris and
                 Catherine Began
 Telephone No. (312) 798-6005
and
                         (312)
798-6117
 Fax No. (312) 466-1710

  

 22 

			
	with a copy to:	 	 DLA Piper Rudnick Gray Cary US LLP
 203 North LaSalle
Street
 Chicago, Illinois 60601
 Attention: James L. Beard,
Esq.
 Telephone No. (312) 368-2169
 Fax No. (312)
630-7379

		
	If to Purchaser:	 	 Equinix, Inc.
 301 Velocity Way
 Foster City, CA 94404
 Attention: Renee Lanam and
                 Paul Silliman
 Telephone No. (650) 513-7085
 Fax No. (650) 513-7909

		
	with a copy to:	 	 Orrick, Herrington & Sutcliffe LLP
 405 Howard
Street
 San Francisco, CA 94105
 Attention: William G.
Murray
 Telephone No. (415) 773-5807
 Fax No. (415)
773-5759

  
 10.5.
Modifications. This Agreement cannot be changed orally, and no executory agreement shall be effective to waive, change, modify or discharge it in whole or in part unless such executory agreement is in writing and is signed by the
parties against whom enforcement of any waiver, change, modification or discharge is sought. 
  
 10.6. Entire Agreement. This Agreement, including the exhibits and schedules hereto, contains the entire agreement between the parties hereto pertaining to the subject matter hereof and fully supersedes
all prior written or oral agreements and understandings between the parties pertaining to such subject matter, other than any confidentiality agreement executed by Purchaser or its principals or Affiliates in connection with the Property.

  
 10.7. Further Assurances. Each party agrees that
it will execute and deliver such other documents and take such other action, whether prior or subsequent to Closing, as may be reasonably requested by the other party to consummate the transaction contemplated by this Agreement so long as the same
imposes no additional liability on such party. The provisions of this Section 10.7 shall survive Closing. 
  
 10.8. Counterparts. This Agreement may be executed in counterparts, all such executed counterparts shall constitute the same agreement, and
the signature of any party to any counterpart shall be deemed a signature to, and may be appended to, any other counterpart. 
  
 10.9. Facsimile Signatures. In order to expedite the transaction contemplated herein, telecopied, facsimile or email (in pdf format)
signatures may be used in place of original signatures on this Agreement. Seller and Purchaser intend to be bound by the signatures on the 
  

 23 

 telecopied or emailed document, are aware that the other party will rely on the telecopied or emailed signatures, and
hereby waive any defenses to the enforcement of the terms of this Agreement based on the form of signature. 
  
 10.10. Severability. If any provision of this Agreement is determined by a court of competent jurisdiction to be invalid or unenforceable,
the remainder of this Agreement shall nonetheless remain in full force and effect; provided that the invalidity or unenforceability of such provision does not materially adversely affect the benefits accruing to any party hereunder. 
  
 10.11. Applicable Law. This Agreement shall be governed by and
construed in accordance with the laws of the State in which the Property is located. Purchaser and Seller agree that the provisions of this Section 10.11 shall survive the Closing or any termination of this Agreement. 
  
 10.12. No Third-Party Beneficiary. The provisions of this
Agreement and of the documents to be executed and delivered at Closing are and will be for the benefit of Seller and Purchaser only and are not for the benefit of any third party, and accordingly, no third party shall have the right to enforce the
provisions of this Agreement or of the documents to be executed and delivered at Closing. 
  
 10.13. Captions. The section headings appearing in this Agreement are for convenience of reference only and are not intended, to any extent and for any purpose, to limit or define the text of any section
or any subsection hereof. 
  
 10.14. Construction.
The parties acknowledge that the parties and their counsel have reviewed and revised this Agreement and that the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in
the interpretation of this Agreement or any exhibits or amendments hereto. 
  
 10.15. Recordation. This Agreement may not be recorded by any party hereto without the prior written consent of the other party hereto. The provisions of this Section 10.15 shall survive the Closing
or any termination of this Agreement. 
  
 10.16. Like Kind
Exchange. 
  
 (i) Seller, at its option,
may elect to use the proceeds for the sale of the Property to purchase a replacement property as part of a like-kind exchange under Section 1031 of the Code. If Seller desires to sell the Property as part of such a like-kind exchange, Seller
shall notify Purchaser no later than two (2) business days prior to the Closing Date. Provided Seller has so notified Purchaser, Purchaser agrees to cooperate with Seller to effect the like-kind exchange contemplated hereunder and to execute
and deliver all documents which reasonably may be required to effectuate such exchange as a qualified transaction pursuant to Section 1031 of the Code; provided that: (i) the Closing shall not be delayed; (ii) Purchaser incurs no
additional cost or liability in connection with the like-kind exchange; (iii) Seller pays all costs associated with the like-kind exchange; and (iv) Purchaser is not obligated to take title to any other property. 
  

 24 

 (ii) Purchaser, at its option, may elect to exchange other property of like-kind and
qualifying use within the meaning of Section 1031 of the Code, for fee title in the Property. If Purchaser desires to purchase the Property as part of such like-kind exchange, Purchaser shall notify Seller no later than two (2) business
days prior to the Closing Date. Provided Purchaser has so notified Seller, Seller agrees to cooperate with Purchaser to effect the like-kind exchange contemplated hereunder and to execute and deliver all documents which reasonably may be required to
effectuate such exchange as a qualified transaction pursuant to Section 1031 of the Code; provided that: (i) the Closing shall not be delayed; (ii) Seller incurs no additional cost or liability in connection with the like-kind
exchange; (iii) Purchaser pays all costs associated with the like-kind exchange; and (iv) Seller is not obligated to take title to any other property. 
  

10.17. Attorneys’ Fees and Costs. In the event suit or action is instituted to interpret or enforce the terms of this Agreement, or
in connection with any arbitration or mediation of any dispute, the prevailing party shall be entitled to recover from the other party such sum as the court, arbitrator or mediator may adjudge reasonable as such party’s costs and
attorney’s fees, including such costs and fees as are incurred in any trial, on any appeal, in any bankruptcy proceeding (including the adjudication of issues peculiar to bankruptcy law) and in any petition for review. Each party shall also
have the right to recover its reasonable costs and attorney’s fees incurred in collecting any sum or debt owed to it by the other party, with or without litigation, if such sum or debt is not paid within fifteen (15) days following written
demand therefor. 
  
 10.18. Governmental Approvals.
Nothing contained in this Agreement shall be construed as authorizing Purchaser to apply for a zoning change, variance, subdivision maps, lot line adjustment, or other discretionary governmental act, approval or permit with respect to the Property
prior to the Closing, and Purchaser agrees not to do so. Purchaser agrees not to submit any reports, studies or other documents, including, without limitation, plans and specifications, impact statements for water, sewage, drainage or traffic,
environmental review forms, or energy conservation checklists to any governmental agency, or any amendment or modification to any such instruments or documents prior to the Closing except to the extent disclosure is required by applicable law.
Purchaser’s obligation to purchase the Property shall not be subject to or conditioned upon Purchaser’s obtaining any variances, zoning amendments, subdivision maps, lot line adjustment or other discretionary governmental act, approval or
permit. 
  
 10.19. Exclusive. Until this Agreement
is terminated, Seller will cease its marketing efforts and will not solicit, negotiate or enter into any backup letters of intent, proposals, options or contracts with regard to the purchase and sale of the Property. 
  
 [EXECUTION PAGE FOLLOWS] 
  

 25 

 IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the Effective Date.

  

			
	SELLER:
	
	 TRIZEC REALTY, LLC, a California limited
 liability company

		
	By:	 	 /s/ EVAN M. BORIS

	Name:	 	Evan M. Boris
	Its:	 	Vice President
	
	PURCHASER:
	
	EQUINIX, INC, a Delaware corporation
		
	By:	 	 /s/ KEITH D. TAYLOR

	Name:	 	Keith D. Taylor
	Its:	 	CFO

  

 26 

 Escrow Agent executes this Agreement below solely for the purpose of acknowledging that it agrees to be bound by the
provisions of Sections 1.5 and 1.6 hereof. 
  

			
	ESCROW AGENT:
	
	 FIRST AMERICAN TITLE INSURANCE
 COMPANY, a California corporation

		
	By:	 	 /s/ JAMES MCINTOSH

	Name:	 	James McIntosh
	Its:	 	V.P.

  

 27 

 ASSIGNMENT AND ASSUMPTION OF 
 SALE AGREEMENT 
  
 THIS ASSIGNMENT AND ASSUMPTION OF SALE AGREEMENT (this “Assignment”) is dated as of October 11, 2005, between EQUINIX, INC., a Delaware corporation (“Assignor”), and EQUINIX RP II LLC, a
Delaware limited liability company (“Assignee”). 
  
 Assignor hereby assigns to Assignee all of its right, title and interest in and to that certain Sale Agreement dated as of October 3, 2005 between Assignor, as buyer, and Trizec Realty, LLC, a California limited liability company, as
seller (“Seller”) (the “Purchase Agreement”), and Assignee hereby assumes all of Assignor’s obligations under the Purchase Agreement. Assignee hereby indemnifies, releases and holds harmless Assignor from and against any and
all costs, claims, actions, obligations and liabilities directly or indirectly relating to or arising under the Purchase Agreement. 
  
 [Remainder of page intentionally left blank] 
  

 28 

 IN WITNESS WHEREOF, Assignor and Assignee have caused this Assignment to be executed on the day and year
first above written. 
  

					
	ASSIGNOR:
		
	 	 	Equinix, Inc.,
	 	 	a Delaware corporation
			
	 	 	By:	 	 /s/ PETER VAN CAMP

	 	 	Name:	 	Peter Van Camp
	 	 	Title:	 	Chief Executive Officer
	
	ASSIGNEE:
		
	 	 	Equinix RP II LLC,
	 	 	a Delaware limited liability company
			
	 	 	By:	 	 /s/ PETER VAN CAMP

	 	 	Name:	 	Peter Van Camp
	 	 	Title:	 	Manager

  

 29Option Agreement to Purchase Stock

 Exhibit 10.2 
  
 OPTION AGREEMENT TO PURCHASE STOCK 
  
 THIS OPTION AGREEMENT TO PURCHASE STOCK (“Option Agreement”) is made and entered into as of the
15th day of August, 2005 by and between TRANSCEND SERVICES, INC., a Delaware corporation (the
“Company”), and SUSAN McGROGAN, an individual resident of the State of Florida (“McGrogan”). 
  
 W I T N E S S E T H: 
  
 WHEREAS, the Company has previously issued in favor of McGrogan that certain
Promissory Note dated January 31, 2005 (the “Note”) in the original principal amount of $3,500,000; and 
  
 WHEREAS, the Company desires to grant to McGrogan and McGrogan desires to receive certain options to purchase shares of the Company’s common stock,
par value $0.05 per share (the “Stock”) subject to the terms and conditions set forth herein. 
  
 NOW, THEREFORE, for and in consideration of the premises and the mutual covenants and agreements contained herein and other good and valuable
consideration, the receipt, adequacy and sufficiency of which are hereby acknowledged, the parties hereto covenant and agree as follows: 
  
 ARTICLE I 
 GRANT OF OPTION

  
 The Company hereby irrevocably grants to McGrogan four
(4) options (each an “Option” and collectively “Options”) to purchase shares of the Stock in accordance with the schedule set forth below and subject to the conditions set forth in this Agreement. The number of
shares of Stock to be acquired upon the exercise of each Option is determined in Article V below. 
  

														
	 	  	Effective Date of
Exercise

	  	 Notice Period
 Commencement
Date

	  	Total
Exercise
Price

	  	Cash
Consideration

	  	Amount
Applied in
Reduction of
Note Principal

	 Option #1
	  	August 15, 2005	  	immediately	  	$	200,000	  	$	100,000	  	$	100,000
	 Option #2
	  	February 15, 2006	  	February 1, 2006	  	$	200,000	  	$	100,000	  	$	100,000
	 Option #3
	  	August 15, 2006	  	August 1, 2006	  	$	200,000	  	$	100,000	  	$	100,000
	 Option #4
	  	February 15, 2007	  	January 31, 2007	  	$	200,000	  	$	100,000	  	$	100,000

  

 1 

 ARTICLE II 
 EXERCISE PRICE 
  
 The
total exercise price for all shares acquired for each Option (the “Exercise Price”) shall be Two Hundred Thousand Dollars ($200,000). The Exercise Price for each Option shall be comprised of: (i) the sum of One Hundred Thousand
Dollars ($100,000) in cash (the “Cash Portion”) payable in immediately available funds on the Effective Date of Exercise and (ii) a reduction in the amount of One Hundred Thousand Dollars ($100,000) of the outstanding principal
balance of the Note. 
  
 ARTICLE III 
 EXERCISE OF OPTION 
  
 Each Option shall be exercisable by McGrogan, in whole but not in part, on the effective date of exercise (the “Effective Date of
Exercise”) set forth for such Option in the schedule in Article I above. Any Option not exercised by 5:00 p.m. on the Effective Date of Exercise shall no longer be exercisable and shall lapse. The lapse of any individual Option shall not
affect McGrogan’s ability to exercise any subsequent Option. 
  
 ARTICLE IV 
 MANNER OF EXERCISE 
  
 The exercise of each Option shall be by written notice delivered to the Company in the form of Exhibit A attached
hereto (the “Written Notice”) together with tender of the Cash Portion. The Written Notice of McGrogan’s intent to exercise any Option must be delivered to the Company during the Option Notice Period for such Option. The
“Option Notice Period” with respect to any Option shall mean the period beginning at 8:00 a.m. Eastern Time on the notice period commencement date (the “Notice Period Commencement Date”) set forth for such Option in
the schedule shown in Article I above and ending at 5:00 p.m. Eastern Time on the Effective Date of Exercise for such Option. 
  
 ARTICLE V 
 DETERMINATION OF NUMBER OF
SHARES PURCHASED 
 DELIVERY OF THE STOCK 
  

Upon the timely exercise by McGrogan of any Option in accordance with the terms and conditions set forth herein, including without limitation payment
by McGrogan of the Cash Portion of the Exercise Price for such Option, the Company shall deliver to McGrogan within five (5) trading days after the Effective Date of Exercise for such Option a number of shares (the “Purchased
Shares”) of the Stock determined by dividing the Total Exercise Price for such Option by one hundred and ten percent (110%) of the average closing price per share of the Stock on the National Association of Stock Dealers Automatic
Quotation System (NASDAQ) for 

  

 2 

 
the ten (10) trading days immediately prior to the Effective Date of Exercise. The Average Closing Price shall be determined by adding up the closing
prices and dividing the sum total by ten (10). 
  
 All certificates representing
the Purchased Shares shall bear the following restrictive legend: 
  
 “THE SECURITIES EVIDENCED HEREBY WERE ISSUED AND SOLD WITHOUT REGISTRATION UNDER THE FEDERAL SECURITIES ACT OF 1933, AS AMENDED (THE “FEDERAL ACT”), OR THE SECURITIES LAWS OF ANY STATE, IN RELIANCE UPON
CERTAIN EXEMPTIVE PROVISIONS OF SAID ACTS. SAID SECURITIES CANNOT BE SOLD OR TRANSFERRED UNLESS SUCH SALE OR TRANSFER IS MADE: (1) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE FEDERAL ACT OR PURSUANT TO AN EXEMPTION FROM SUCH
REGISTRATION; AND (2) IN A TRANSACTION WHICH IS EXEMPT UNDER APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH LAWS, OR IN A TRANSACTION WHICH IS OTHERWISE IN COMPLIANCE WITH SUCH LAWS.”

  
 ARTICLE VI 
 SECURITIES LAWS MATTERS 
  
 McGrogan hereby represents and warrants to the Company that McGrogan is purchasing the Purchased Shares for her own account for investment and not for
resale or distribution in any transaction that would be in violation of the securities laws of the United States of America or any state thereof. McGrogan acknowledges that the Purchased Shares have not been registered under the Securities Act of
1933, as amended (the “Securities Act”), or under any state securities laws and, therefore, cannot be resold unless registered under the Securities Act and applicable state securities laws or unless an exemption from such
registration is available and, as a result, McGrogan must bear the risk of an investment in the Purchased Shares for an indefinite period of time. McGrogan is an “accredited investor” as that term is defined in Regulation D promulgated
under the Securities Act. The financial condition of McGrogan is currently adequate to bear the substantial economic risk of an investment in the Purchased Shares. McGrogan, in conjunction with a “purchaser representative” within the
meaning of Regulation D, has sufficient knowledge and experience in investment and business matters to understand the economic risk of such an investment and the risk involved in a commercial enterprise such as the Company. McGrogan is a bona fide
resident of the State of Florida and all communications and information, written or oral, concerning the Purchased Shares and this Option Agreement have been directed to McGrogan and have been received in such State. McGrogan has received and
carefully read the Company’s Proxy Statement dated March 18, 2005, the Company’s most recent Annual Report on Form 10-K for the fiscal year ended December 31, 2004, and the Company’s Quarterly Report on Form 10-Q for the
quarter ended June 30, 2005, each filed with the Securities and Exchange Commission pursuant to the Securities Exchange Act of 1934, as amended. McGrogan has had the opportunity to ask questions of, and receive answers from, officers of the
Company concerning the Company, its business and the Stock and to obtain any 

  

 3 

 
additional information which McGrogan reasonably requested. McGrogan understands that the Company will rely upon the statements made by McGrogan in this
Article VI for purposes of establishing and relying upon an exemption from the registration requirements of the Securities Act for the issuance of the Purchased Shares. 
  
 ARTICLE VII 
 APPLICABILITY OF 
 REGISTRATION RIGHTS AGREEMENT 
  
 All Stock issued pursuant to this Agreement shall enjoy the rights and be included within the definition of “Shares” under that
certain Registration Rights Agreement made and entered into as of January 31, 2005 by and between the Company and McGrogan. 
  
 ARTICLE VIII 
 MISCELLANEOUS

  

	8.1	Publicity. McGrogan hereby acknowledges that the Company shall be permitted to issue a press release and make other public statements related to or in connection with the
execution of this Agreement and the exercise of any Option by McGrogan. 

  

	8.2	Entire Agreement. This Option Agreement constitutes the entire agreement of the parties with respect to the subject matter hereof, supersedes any other agreement (if any)
concerning options to acquire Stock in exchange for cash and credit against the Note, and may not be modified or amended except by a written instrument signed by each of the parties hereto. 

  

	8.3	Notices. All notices required or permitted hereunder (“Notices”) must be in writing and are deemed to have been duly given on the scheduled delivery date
therefore if (a) delivered personally; (b) sent by facsimile, followed with an original by mail, and confirmed by the recipient thereof; (c) mailed, certified or registered mail, return receipt requested, postage prepaid; or
(d) sent by Federal Express or other nationally recognized overnight courier service or overnight express U.S. Mail, postage prepaid, as follows: 

  
 If to McGrogan to: 
  
 Susan McGrogan 
 10109 Cortez Boulevard

 Brooksville, FL 34613 
 Facsimile: 352-596-3326 
  

 4 

 If to the Company to: 
  
 Transcend Services, Inc. 
 945 East Paces Ferry Road, Suite 1475 
 Atlanta, Georgia 30326 
 Facsimile: (404) 364-8009 
 Attention:
Chief Executive Officer 
  
 With a copy in like manner (which
shall not constitute notice) to: 
  
 Smith, Gambrell &
Russell, LLP 
 1230 Peachtree Street, N.E. 
 Suite 3100, Promenade II 
 Atlanta, Georgia 30309-3592 
 Facsimile: (404) 685-6923 
 Attention:
Richard G. Greenstein, Esq. 
  
 Each party may change its address
for the giving of notices and communications to it, and/or copies thereof, by written notice to the other party in conformity with the foregoing. 
  

	8.4	No Assignment; Binding Effect. Neither this Option Agreement nor any right, interest or obligation hereunder may be assigned by any party hereto without the prior written
consent of the other party hereto and any attempt to do so will be void. Subject to the preceding sentence, this Option Agreement is binding upon, inures to the benefit of and is enforceable by the parties hereto and their respective successors and
assigns. 

  

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

  

	8.6	Counterparts. This Option Agreement may be executed in two or more counterparts, all of which taken together shall constitute one and the same instrument. Signatures
delivered as facsimiles shall be binding to the same extent as original signatures. 

  
 [Signatures appear on the following page] 
  

 5 

 IN WITNESS WHEREOF, the parties have executed this Option Agreement as of the date first above written.

  

	
	 MCGROGAN:

	
	 /s/ Susan McGrogan

	 Susan McGrogan

  

			
	 COMPANY:

	
	 TRANSCEND SERVICES, INC.

		
	By:	 	 /s/ Mark D. Meersman

	 Name:
	 	 Mark D. Meersman

	 Title:
	 	 CFO

  

 6 

 EXHIBIT A 
 FORM OF WRITTEN NOTICE 
  

	Effective	Date of Exercise:                         

  
 The undersigned, Susan McGrogan
(“McGrogan”), hereby expresses McGrogan’s intent to exercise an option (the “Option”) to purchase shares of the Common Stock, par value $0.05 per share, of Transcend Services, Inc. (the
“Company”) granted to McGrogan by the Company pursuant to that certain Option Agreement to Purchase Stock dated as of
                         by and between McGrogan and the Company, subject to the terms and conditions contained therein
(the “Option Agreement”). 
  
 McGrogan hereby
(i) tenders to the Company the sum of One Hundred Thousand Dollars ($100,000) reduced for fractional shares in immediately available funds (ii) further agrees that the outstanding principal balance of that certain Promissory Note in favor
of McGrogan dated January 31, 2005 in the original principal amount of $3,500,000 shall be reduced by an amount equal to One Hundred Thousand Dollars ($100,000) on the Effective Date of Exercise in payment for the exercise of this Option, and
(iii) that for purposes of principal payments due under the terms of the Promissory Note, the aforesaid $100,000 shall be deducted from the principal amount which would otherwise be due on the Promissory Note on the next payment date under
Section 1.2 of the Promissory Note. 
  
 Capitalized terms
used in this document not otherwise defined shall have the meaning ascribed to them in the Option Agreement. 
  

	
	
	 
	 Susan McGrogan

	
	 Date: 

  

 7

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