Document:

Exhibit 10.32

 

SALE AND PURCHASE AGREEMENT

 

THIS SALE AND PURCHASE AGREEMENT (“Agreement”) is
made between MID-ATLANTIC (PENCADER)
INDUSTRIAL CORPORATION, a Maryland
corporation (“Seller”), and DCT
INDUSTRIAL OPERATING PARTNERSHIP LP, a Delaware limited partnership (“Buyer”),
CHICAGO TITLE INSURANCE COMPANY (“Escrow Agent”) joins in this Agreement
for the purposes set forth below. The effective date of this Agreement (the “Effective Date”) shall be the date on
which the last of the Seller or Buyer sign this Agreement below.

 

WHEREAS,
Seller is the owner of a real estate project comprised of an industrial building containing
approximately 128,860 rentable square feet of space, situated on a parcel of land more particularly described in
Exhibit A attached hereto, all located at 405 Pencader Drive in Newark, Delaware.

 

AND,
WHEREAS, Seller has agreed to sell to Buyer, and Buyer has agreed to purchase
from Seller, such land and building together with (i) all improvements and
fixtures thereto (the “Improvements”),
(ii) the landlord’s interest in all leases of portions of such real property
(including all guaranties thereof), including any such leases which may be made
by Seller after the Effective Date and
prior to Closing (defined herein) as permitted by this Agreement (the “Leases”),
(iii) the tangible personal
property (“Tangible Personal Property”) and intangible personal property (“Intangible Personal Property”) located on or related to the land, building
or other Improvements as of the Effective Date, including without limitation
all trade names and trademarks associated therewith, the plans and
specifications and other architectural and engineering drawings for the
Improvements (if any), any building or system warranties and guaranties (if any), all rights under any
contracts binding Seller and related to the construction, operation, ownership or management of such
real property (collectively the “Contracts”), governmental permits, approvals
and licenses (to the extent assignable), and all equipment, machinery, furniture, furnishings, supplies and other tangible personal property
owned by Seller (including Seller’s
interest in any such property leased by Seller) now or hereafter located in and used in connection with
the operation, ownership or management of the Property (all of the foregoing,
collectively the “Property”), under all of the terms set forth herein.

 

NOW,
THEREFORE, for good and valuable consideration, Seller hereby agrees to sell
the Property to Buyer, and Buyer hereby agrees to purchase the Property from
Seller, under all of the following terms and conditions:

 

1.                                          Price and Deposit.

 

1.01                           Purchase Price. The purchase price for the Property (the “Purchase Price”) shall be $7,550,000.00.

 

1.02                           Payment. The Purchase
Price shall be paid as follows:

 

 

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(a)                             On the Effective
Date of this Agreement, Buyer
shall pay an amount of $375,000.00 (the
“Deposit”). Any portion of the Deposit paid to the Escrow Agent shall be
held by the Escrow Agent in accounts approved by Seller and applied in
accordance with the terms of this
Agreement. Any interest earned on the Deposit shall be deemed part of the Deposit and paid together with the
principal portion of the Deposit according to the terms hereof.

 

(b)                            Upon closing under this Agreement, the
Deposit and the remainder of the Purchase Price, subject to closing adjustments provided herein, shall be paid by wire
transfer of funds to Seller’s account.

 

2.                                       Review of Property.

 

2.01                           Due Diligence Materials. Within 5 business days after the Effective
Date, Seller shall deliver to Buyer, or
make available for review by
Buyer, copies of the documents listed in Exhibit B to this Agreement which are in the Seller’s possession
(collectively the “Due Diligence Materials”).
Buyer acknowledges and agrees
that Buyer shall be responsible for verifying through Buyer’s own due diligence
the accuracy and completeness of
all documents and information,
including the foregoing Due Diligence
Materials, provided by
Seller to Buyer, and any reliance by Buyer on such documents and information
shall be at Buyer’s own risk and
expense. In addition, Buyer expressly
acknowledges and agrees that Seller shall not be obligated to furnish, nor shall Buyer be entitled to review or have
access to, any confidential, proprietary or privileged documents or
information connected with the
Property, including but not limited to opinions, appraisals, audits, internal
memoranda or other documents, internal work product or other similar documents, which are in the possession or control of Seller.
In connection with its purchase of the Property, Buyer may review and approve the Due
Diligence Materials, as well as title
to the Property, the physical condition of the Property, all zoning,
land use, building, environmental and other
statutes, rules or regulations applicable to the Property, and any other matters relevant to acquisition, ownership and operation of
the Property (collectively the “Property Information”), all as Buyer deems appropriate or necessary,
and all as subject to §2.02 and §2.04 hereof. Likewise, notwithstanding anything to the contrary herein,
Seller makes no representation or warranty whatsoever as to the truth, accuracy
or completeness of any materials or
information, including but not limited to the Due Diligence Materials and any other
materials relating to the
Property Information, delivered or made
available by Seller to Buyer in connection
with the transaction contemplated
herein.

 

2.02                           Study Period. Buyer shall have a period, commencing upon
the Effective Date and extending
through and expiring on November
21, 2006 (the “Study Period”), in which
to examine, inspect and investigate the Due Diligence Materials and the
other Property Information, and to
determine in the Buyer’s sole discretion if the Property is acceptable for purchase by Buyer. If Buyer
determines for any reason (or for no
reason) to not purchase the Property, then Buyer shall have the right, in its
sole discretion, to terminate this Agreement upon written notice to
Seller delivered prior to the expiration of the Study Period, in which event
the Deposit shall be returned to Buyer
and the parties shall have no further liability hereunder (except as may
be expressly provided herein upon
termination). In the event Buyer
does not so notify Seller of its
election to terminate this Agreement
prior to expiration of the Study
Period, Buyer shall be deemed to have reviewed, approved and accepted the
Property Information and

 

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automatically
waived its right to terminate this Agreement (except as may otherwise
be expressly provided herein),
and the parties shall proceed to closing in accordance with the terms set
forth herein.

 

2.03                           Right of Entry. During the Study Period, Buyer and its
agents shall have the right to enter
the Property for the purpose of examining the environmental, structural
and other physical conditions of the Property. Such right of entry shall be
governed by the following provisions:

 

(a)                                  In exercising
such right of entry, the Buyer agrees to not interfere with the operation of
the Property or the rights of tenants therein. Furthermore, Buyer shall
not take any core samples, install any monitoring wells or undertake any other
invasive tests or studies, or
communicate with any government agencies or officials with respect to
environmental matters, without the Seller’s prior written consent. In all
events, Buyer shall fully repair and
restore the Property if any physical damage is caused by the exercise of such rights.

 

(b)                                 Buyer shall not contact or communicate with
any tenants at the Property without prior consent of Seller and without
affording Seller an opportunity to review written communications in advance or
accompany Buyer on visits to tenants (as the case may be). In addition, Buyer
shall not communicate the results of any tests, inspections or other due
diligence efforts by Buyer regarding
the Property to any officials at environmental, zoning, assessment or other government agencies without the Seller’s prior
consent (which consent may be
withheld by Seller for any reason).

 

(c)                                  Prior to entering onto the Property, Buyer,
as well as any consultants or
other third parties performing tests and studies of the Property, shall deliver
to Seller certificates evidencing (1)
commercial general liability insurance coverage against injury (including
death) and property damage with a limit
of not less than $1,000,000 and naming
Seller as an additional insured, (2)
worker’s compensation insurance coverage with limits of not less
than that required by law, (3) employer’s
liability insurance coverage against accident and disease with a limit of not less than
$1,000,000 for each employee, and (4) contractual liability insurance. In addition, prior to allowing any
consultant or other third party performing audits or other inspections of the
environmental aspects of the Property, Buyer shall deliver to Seller certificates evidencing that Buyer and such
party are covered by environmental liability insurance with a limit of not less than $1,000,000.

 

(d)                                 Buyer hereby indemnifies and holds harmless
Seller from and against any and all liability, losses and damages (whether
actual, direct, indirect, incidental or consequential), suits, claims, actions or other proceedings (including
attorneys’ fees), and costs and expenses (including the costs of restoration, remediation and other similar activities) arising in any
connection with the entry onto the Property by Buyer or any of its
employees, agents, contractors or consultants. The foregoing indemnity shall
survive any termination of or closing under this Agreement.

 

(c)                                  Buyer agrees that if the transaction
contemplated by this Agreement
does not occur due to termination prior to closing or for any other reason
whatsoever,

 

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Buyer
shall deliver to Seller within 5 days after such termination copies of the Due Diligence Materials, as well as any tests
or other reports regarding the Property prepared for Buyer by other third parties, all without
representation or warranty of any
kind as to the accuracy or completeness of the content or
results of such third party reports, and all with the understanding that Buyer shall not be required to
deliver to Seller any of Buyer’s memorandums., analyses or other internal
workproduct relating to the Property.

 

Buyer
acknowledges and agrees that Seller makes no representations or warranties of
any kind regarding the physical (including environmental and structural)
condition of the Property, except as may be expressly stated herein (if at
all), and Buyer shall rely entirely on Buyer’s own examinations and inspections
of the Property in determining whether to purchase the Property.

 

2.04                           Legal Review Period. Promptly after the Effective Date, Seller shall order, and deliver to Buyer upon receipt, (i) a current survey, which
shall be certified according to ALTA standards or other standards
substantially equivalent thereto (“Survey”), and (ii) a title insurance commitment with respect to the Property (“Title
Commitment”). On or before the date on which the Study Period expires, Buyer shall notify Seller in
writing of any defect in title to the Property or of any other matter which is indicated on the Survey or Title Commitment to which
Buyer objects (using reasonable discretion). If Buyer does so notify Seller of
a bona-fide defect in title or other matter reasonably objectionable to Buyer
within the prescribed time, Seller
shall have 10 business days in which to determine whether to cure the defect or
other matter so objected to by Buyer and to notify Buyer of Seller’s decision in this regard; however,
Seller shall not be required or obligated to expend any amount of money or take any other action to cure such defect or other matter. If Seller is unable to cure the defect
or other matter so objected to by Buyer
to the reasonable satisfaction of Buyer, Buyer shall have the right, as its
sole remedy on account thereof, to either (i) waive such defect or other matter
and take title to the Property without any adjustment in the Purchase Price, or
(ii) terminate this Agreement and receive a return of the Deposit,
provided that if Buyer elects to terminate this Agreement Buyer notifies Seller of its election to terminate within 5 business days after the Seller’s notice
(or by the Closing Date defined
in §5.03 hereof, if earlier), failing which option (i) will be applicable.
In the event that Buyer fails to
initially notify Seller in writing of a defect or other objectionable
matter within the prescribed time as described above, or Buyer fails to terminate the Agreement within
the prescribed time upon Seller’s failure to cure the defect or other
matter to Buyer’s reasonable
satisfaction, Buyer shall be deemed to
have automatically waived any
objection to the state of title to the Property or to any matter shown on the Survey and to
have agreed to proceed to closing in accordance with the terms of this Agreement. In all events, at closing, Seller will cause
to be paid off (with proceeds up to the Seller’s proceeds of sale) and released any mortgage or deed of trust
encumbering title to the Property.

 

3.                                       Representations and Warranties.

 

3.01                           Seller’s Representations and Warranties. Seller hereby covenants, represents and
warrants that to Seller’s knowledge:

 

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(a)                                  Seller has been duly organized and is validly
existing in good standing in the state of Seller’s formation.

 

(b)                                 All of the documents and information required
to be delivered to Buyer pursuant to §2.01 and Exhibit B include all Leases and
all Contracts to which Seller is a party with respect to the Property
(including all amendments thereto). To Seller’s knowledge, Seller is not in
breach or default under any of the Leases or Contracts, and, to Seller’s
knowledge, no tenant or vendor or other party is in breach or default, and
there are no facts or circumstances which, after notice or lapse of time (or
both), would constitute or result in any such breach or default, under any of
the Leases or Contracts.

 

(c)                                  There are not pending, nor to Seller’s
knowledge threatened, any special assessments or condemnation actions with
respect to the Property.

 

(d)                                 This Agreement has been, and all the
documents to be delivered by Seller to Buyer at closing will be, duly
authorized and shall constitute binding obligations, enforceable against Seller
in accordance with the terms thereof.

 

(e)                                  This Agreement, and the transfer of the
Property by Seller, shall not violate any contract, agreement or instrument to
which Seller is a party or by which the Seller is bound.

 

(f)                                    To Seller’s knowledge, the Property does not
contain any chemicals, materials or substances in violation of any law, rule or
regulation relating to the storage, disposal or other handling of
environmentally sensitive materials, including but not limited to (i)
substances defined as hazardous wastes under the Resource Conservation and
Recovery Act or regulations adopted thereunder, or (ii) hazardous substances as
defined in the Comprehensive Environmental Response, Compensation and Liability
Act or regulations adopted thereunder, except for de minimis quantities of
cleaning materials, materials which are stored and used in connection with the
operation of the Property in compliance with all applicable laws and
regulations, or as disclosed by any report or other materials delivered to
Buyer pursuant to §2.01 and Exhibit B hereto.

 

(g)                                 The Property is not, or at closing hereunder
will not be, subject to mechanics’ liens or other similar liens for services
provided to or on behalf of the Seller.

 

(h)                                 The Seller is not a “foreign person” within
the meaning of §1445(f)(3) of the Internal Revenue Code of 1986.

 

(i)                                     There are no court actions or other legal
proceedings pending, nor to Seller’s knowledge threatened, against Seller or
with respect to the Property before any court or administrative agency.

 

(j)                                     Seller has not (i) made a general assignment
for the benefit of creditors, (ii) filed any voluntary petition in bankruptcy
or suffered the filing of any involuntary petition by Seller’s creditors, (iii)
suffered the appointment of a receiver to take possession of all,

 

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or
substantially all, of Seller’s assets, (iv) suffered the attachment or other
judicial seizure of all, or substantially all, of Seller’s assets, (v) admitted
in writing its inability to pay its debts as they come due, or (vi) made an
offer of settlement, extension or composition to its creditors generally.

 

(k)                                  Seller is in compliance with the requirements
of Executive Order No. 13224, 66 Fed.
Reg. 49079 (Sept. 25, 2001) (the “Order”) and other similar requirements
contained in the rules and regulations of the Office of Foreign Assets Control,
Department of the Treasury (“OFAC”) and in any enabling legislation or other
Executive Orders or regulations in respect thereof (the Order and such other
rules, regulations, legislation or orders are collectively hereinafter referred
to as the “Orders”). Neither the Seller nor any of its affiliates (i) is listed
on the Specially Designated Nationals and Blocked Persons List maintained by
OFAC pursuant to the Order and/or on any other list of terrorists or terrorist
organizations maintained pursuant to any of the rules and regulations of OFAC
or pursuant to any other applicable Orders (such lists are collectively
referred to as the “Lists”), (ii) is a Person (as defined in the Order) who has
been determined by competent authority to be subject to the prohibitions
contained in the Orders, or (iii) is owned or controlled by (including without
limitation by virtue of such person being a director or owning voting shares or
interests), or acts for or on behalf of, any person on the Lists or any other
person who has been determined by competent authority to be subject to the
prohibitions contained in the Orders. Seller is not acting, directly or
indirectly for, or on behalf of, any person, group, entity or nation named by
any Executive Order (including the September 24, 2001, Executive Order Blocking
Property and Prohibiting Transactions With Persons Who Commit, Threaten to
Commit, or Support Terrorism) or the United States Treasury Department as a
terrorist, “Specially Designated National and Blocked Person,” or other banned
or blocked person, entity, or nation pursuant to any Law that is enforced or
administered by the Office of Foreign Assets Control, and is not engaging in
the transactions contemplated herein, directly or indirectly, on behalf of, or
instigating or facilitating the transactions contemplated herein, directly or
indirectly, on behalf of, any such person, group, entity or nation.

 

(l)                                     Kristin L. Schneider, asset manager and vice
president, and Eric Hines, associate and financial analyst (together the “Knowledge
Parties”), are the persons responsible for supervision and management of the
Property on behalf of the Seller.

 

Any
reference in this Agreement to “knowledge,” “actual knowledge” or “best of
knowledge” of Seller, or the receipt of notices or other communications by
Seller, shall be deemed to mean the actual knowledge of the Knowledge Parties,
and not any implied, imputed or constructive knowledge of either of such
persons or of Seller, and without any independent investigation or inquiry
having been made. Buyer acknowledges and agrees that neither Knowledge Party
nor any other employee or agent of Seller shall have any duty or obligation
under this Agreement or other law to make any affirmative investigation or
inquiry of the matters covered by the foregoing provisions in order to
determine the accuracy or truthfulness thereof. In addition, Buyer hereby
acknowledges and agrees that except with respect to the foregoing
representations and warranties set forth in this provision above, or that which
may be expressly set forth elsewhere in this Agreement (if at all), the
Property is to be conveyed by Seller to Buyer in “as-is, where-is” condition
without warranty or representation, express or implied, as to zoning, physical
condition, environmental condition, suitability for a particular purpose or any
other matter whatsoever.

 

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3.02                           Survival, Merger and Waiver. Upon closing hereunder the covenants,
representations and warranties set
forth in §3.01 above, as modified by the certificate delivered from Seller to Buyer at closing as described
in §5.06, shall be deemed remade as of the date of closing hereunder and shall
survive the closing for a period of nine (9) months. However,
notwithstanding anything to the
contrary herein, to the extent that any documents or information
regarding the Seller or the Property are disclosed to Buyer prior to closing in
writing, including, without limitation,
any matters disclosed to Buyer in
the Due Diligence Materials, the Property Information, any tenant estoppel
certificate or any interview by Buyer or
its representatives with any property manager, tenant, vendor, supplier
or other persons, and Buyer
nevertheless closes on purchase of the Property, Buyer shall be deemed
to have accepted and to have waived any
objection to or claim based on such documents or information. Furthermore,
except with respect to any
covenants, representations or warranties set forth herein which are
expressly to survive closing hereunder,
any and all covenants, representations and warranties contained in this Agreement shall
merge in the deed and the other
documents delivered at closing and
shall not survive closing hereunder.

 

3.03                           Buyer’s Representations and Warranties. Buyer hereby covenants, represents and warrants to Seller as follows:

 

(a)                                  This Agreement has
been, and all the documents to be delivered by Buyer to Seller at closing will
be, duly authorized and executed and shall constitute binding obligations, enforceable
against Buyer in accordance with the
terms thereof.

 

(b)                                 This Agreement, and the acquisition of the
Property by Buyer, shall not violate any contract, agreement or
instrument to which Buyer is a party or by which the Buyer is bound.

 

(c)                                  Buyer has not (i) made a general assignment for the
benefit of creditors, (ii) filed any voluntary petition in bankruptcy or
suffered the filing of any involuntary petition by Buyer’s creditors, (iii)
suffered the appointment of a receiver
to take possession of all, or
substantially all, of Buyer’s assets, (iv) suffered the attachment or other
judicial seizure of all, or
substantially all, of Buyer’s assets, (v) admitted in writing its inability to
pay its debts as they come due, or (vi) made an offer of settlement, extension or composition to its
creditors generally, and Buyer has not planned or contemplated, and is not
planning or contemplating, any of the foregoing.

 

(d)                                 Buyer is in
compliance with the requirements of Executive Order No. 13224, 66 Fed. Reg.
49079 (Sept. 25, 2001) (the “Order”) and other similar requirements
contained in the rules and regulations of the Office of Foreign Assets Control,
Department of the Treasury (“OFAC”) and
in any enabling legislation or other Executive Orders or regulations in respect thereof (the Order and such other rules, regulations, legislation or orders are collectively
hereinafter referred to as the “Orders”). Neither the Buyer nor any of its affiliates (i) is listed on the
Specially Designated Nationals and
Blocked Persons List maintained by OFAC pursuant to the Order and/or on any other list of terrorists or
terrorist organizations maintained pursuant to any of the rules and regulations
of OFAC or pursuant to any other applicable
Orders (such lists

 

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arc
collectively referred to as the “Lists”), (ii) is a Person (as
defined in the Order) who has been determined by competent authority to be
subject to the prohibitions contained in the Orders, or (iii) is owned or
controlled by (including without limitation by virtue of such person
being a director or owning
voting shares or interests), or acts
for or on behalf of, any person on the Lists or any other person who has been determined by competent authority to be subject to the prohibitions
contained in the Orders. Buyer is
not acting, directly or indirectly for,
or on behalf of, any person,
group, entity or nation named by any
Executive Order (including the September 24, 2001, Executive Order Blocking Property and Prohibiting Transactions
With Persons Who Commit, Threaten to Commit, or Support Terrorism) or
the United States Treasury Department
as a terrorist, “Specially Designated National and Blocked Person,” or other banned or blocked person, entity,
or nation pursuant to any Law that is enforced or administered by the Office of
Foreign Assets Control, and is not engaging in the transactions contemplated herein,
directly or indirectly, on behalf of,
or instigating or facilitating the transactions contemplated herein, directly
or indirectly, on behalf of, any such person,
group, entity or nation.

 

(e)                                  Buyer is not (i) a
plan which is subject to Title I
of the Employee Retirement Income
Security Act of 1974, as amended (“ERISA”), as defined in §3(3) of ERISA, nor a plan as defined in §4975(e)(l) of the
Internal Revenue Code of 1986, as amended (each of the foregoing hereinafter referred to collectively as a “Plan”), (ii) a
“governmental plan” as defined in §3(32) of ERISA, or (iii) a “party in interest,” as defined in
§3(14) of ERISA, to a Plan, except with
respect to plans, if any, maintained by Buyer, nor do the assets of Buyer
constitute “plan assets” of one or more of such Plans within the meaning of
Department of Labor Regulations §2510.3-101. Buyer is acting on its own behalf and not on account of or for the benefit
of any Plan. Buyer has no present intent to transfer the Property to any entity,
person or Plan which will cause a violation of ERISA. Buyer has not assigned,
and shall not assign, its interest under this Agreement to any entity, person or Plan in a manner which will cause a violation
of ERISA.

 

(f)                                    Buyer agrees that
the title insurer providing title
insurance for Buyer in the transaction
contemplated herein shall be the Escrow Agent.

 

3.04                           Conditions to Seller’s Closing. The continued accuracy in all
material respects of the
representations and warranties set forth in §3.03 above shall be a condition precedent
to the Seller’s obligation to close
hereunder. If any representation or warranty set forth in §3.03 above shall not
be correct in any material respect at or before closing, Seller may terminate
this Agreement upon written notice to
Buyer of its election to do so, without prejudice to or limitation on Seller’s remedies on
account of breach or default hereunder by Buyer.

 

4.                                       Pre-closing Obligations.

 

4.01                           Operations. Between the Effective Date
and the Closing Date hereunder, Seller shall continue to
operate the Property in the normal
course of business and according to the same standards and procedures governing
the Seller’s operation of the Property
immediately prior to the Effective Date.

 

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4.02                           New Leases. Between the
Effective Date and the Closing Date, Seller shall not execute any new leases or
lease amendments without Buyer’s prior written approval, which approval (i) with respect to the period prior to expiration of the Study Period, shall
not be unreasonably withheld, conditioned or delayed, and (ii) with respect to
the period after the Study
Period, may be withheld by Buyer in its
sole discretion. In the event that Buyer fails to respond within 3 business days after any request for
approval of a lease or any other document, then Buyer’s approval shall be deemed granted. Furthermore, Buyer shall be responsible
for paying, and shall indemnify and
hold harmless Seller from, space
improvement costs, leasing commissions and other similar expenses
related to leases of space at the
Property when and as due, provided that where Buyer’s consent is required with respect to any such obligations which arise in connection with the
execution of a new lease after the Effective Date, such lease is approved or deemed approved by Buyer pursuant to this section.

 

4.03                           New Contracts; Title Instruments. Between the Effective Date and the Closing
Date, Seller shall not execute any new Contracts or other documents or instruments affecting
title to the Property, or (to the
extent within Seller’s control) otherwise allow or permit the imposition
of any liens or other encumbrances
which affect title to the Property,
without the prior written approval of the Buyer. In the event that Buyer fails
to respond within 3 business days after any request for approval of a new
Contract or other document, then Buyer’s approval shall be deemed
granted. Furthermore, notwithstanding the foregoing, Seller shall have the
right to enter into new Contracts with respect to the Property prior to the
Closing Date, provided that such Contracts are terminable on notice of 30 days or less without termination cost or fee.

 

4.04                           Estoppel Letters. Seller shall request in writing from each
of the two tenants at the Property an estoppel letter or certificate
addressed to Buyer and in the respective form shown for such tenant in Exhibits
C-1 and C-2 attached hereto. Seller
shall deliver to Buyer at or before closing copies of any such estoppel
certificates actually obtained by Seller.

 

4.05                           Marketing of Property. After the Effective Date, and until closing or earlier termination of this Agreement, Seller shall not
actively market, or solicit offers for purchase
of, the Property (with the understanding that unsolicited offers shall not
violate the foregoing covenant).

 

5.                                       Closing and Settlement.

 

5.01                           Buyer’s Conditions
to Closing. The satisfaction of each of the following conditions by the
time of closing hereunder shall be
a condition to the Buyer’s obligation to close hereunder:

 

(1)                                  All representations and warranties set forth
in §3.01 above or elsewhere in this Agreement shall continue to be true
and correct in all material respects.

 

(2)                                  Seller shall have performed all of its
obligations and not be in breach
or default hereunder past any applicable notice or grace period.

 

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(3)                                  Seller shall have obtained and delivered to
Buyer an estoppel letter or certificate from each of the tenants under the
Leases. For purposes of this condition, an estoppel letter or certificate will
be deemed to have been “delivered” if such letter or certificate is either (a)
substantially in the form of Exhibit C hereto, or (b) in a form which states
the basic information of the lease term (including expiration date), the base rent
and any other rental amounts (including pass-through charges for operating
expenses), and that the Seller as landlord is not in breach or default of any
material term or condition in the applicable Lease.

 

To
the extent that any one or more of the foregoing conditions is not satisfied in
full by the time of closing, unless waived in writing by Buyer, Buyer shall
have the right to terminate this Agreement by written notice to Seller,
whereupon the Agreement shall be automatically terminated and the Deposit
returned to Buyer, with the parties to have no further liability hereunder
(except as may be expressly provided herein).

 

5.02                           Seller’s Conditions to Closing. The satisfaction of each of the following conditions
by the time of closing hereunder shall be a condition to the Seller’s
obligation to close hereunder:

 

(1)                                  All representations and warranties set forth
in §3.03 above or elsewhere in this Agreement shall continue to be true and correct
in all material respects.

 

(2)                                  Buyer shall have performed all of its
obligations and not be in breach or default (past any applicable notice and
grace period) hereunder.

 

To the extent that any one or more of the foregoing conditions is not
satisfied by the time of closing, unless waived in writing by Seller, Seller
shall have the right to terminate this Agreement by written notice to Buyer,
whereupon the Agreement shall be automatically terminated and the Deposit
returned to Buyer, and the parties shall have no further liability hereunder
(except as may be expressly provided herein). Notwithstanding the foregoing, in
the event that the failure of the condition to closing is due to a breach or
default by Buyer past any applicable notice and grace period hereunder, Seller
shall have all rights and remedies provided herein upon such breach or default
by Buyer.

 

5.03                           Closing Date. Closing and settlement of the purchase and
sale transaction contemplated herein shall occur on that date which is 15 days
after expiration of the Study Period, or on such earlier date as may be agreed
upon by the parties (the “Closing Date”).

 

5.04                           Deed and Title. At closing, Seller shall deliver to Buyer a
special warranty deed in customary form upon payment of the Purchase Price
(subject to closing adjustments provided herein) to Seller. Title to the
Property as conveyed by such deed shall be subject to (a) liens securing
payment of taxes, assessments and other public charges imposed in connection
with the Property but which are not yet due as of the Closing Date, (b) all
matters indicated on the Title Commitment which are not objected to by Buyer in
accordance with §2.04 above, (c) any matters which could be disclosed by an
accurate survey of the Property, (d) any zoning, subdivision or other public
laws and regulations, and (e) the Leases.

 

10

 

5.05                           Additional Conveyances. At
closing, Seller shall execute and deliver to Buyer the following
documents, each of which shall be prepared by or reasonably acceptable to Seller:

 

(a)                                  A bill of sale,
conveying to Buyer without warranty or representation and without
recourse, title to all personal property owned by Seller and located at the
Property.

 

(b)                                 An assignment by Seller, with an assumption
by Buyer, of (i) all Leases of space at the Property, (ii) all Contracts related to the Property, and (iii) all
equipment leases and all warranties and
other rights relating to the
Property which are assignable without charge or restriction. Such assignment shall be solely an instrument of transfer and shall not contain any indemnities or other covenants which are not in set
forth, in substance, in this Agreement.

 

(c)                                  Buyer’s form letter to each tenant and vendor at the
Property notifying such parties of the
sale of the Property to Buyer, which letter shall be reasonably
satisfactory to Seller.

 

(d)                                 Evidence, in form
satisfactory to the Buyer’s title insurer, of Seller’s power and authority to enter into this transaction.

 

(e)                                  A written certificate stating that all
representations and warranties contained in §3.01 above remain, as of the
Closing Date, correct in all material respects as when first made hereunder or,
if not correct, stating the
extent to which any such representations and warranties are not correct.

 

5.06                           Possession; Further Assurances. Possession
of the Property shall be delivered to the Buyer on the Closing Date. In addition,
on or before the Closing Date, Seller
shall deliver to Buyer the Seller’s copies of all leases (including all amendments
thereto). In addition, Seller and Buyer agree to execute and deliver at closing such other documents or instruments
as are necessary or appropriate to
consummate the transactions described
herein, provided that
such other documents or instruments
shall not increase in any material fashion the obligations or liabilities of
the respective parties hereunder.

 

5.07                           Prorations. The following
provisions shall apply to the division
of funds, obligations and payments between the parties as of closing hereunder:

 

(a)                                  The parties shall adjust and prorate the
following items as of 11:59 p.m. on the
Closing Date:

 

(1)                                  All rent, including base rent, minimum rent and
percentage rent (if any), which relates
to the months or other applicable periods up through the month or other applicable period within
which the closing occurs. Any rent which is payable in arrears shall be adjusted on the basis of figures equivalent
to the rent payable for the
immediately preceding rent period, then readjusted after closing upon
determination of final, actual amounts

 

11

 

in accordance with this section. Seller shall not be entitled to
receive a credit for any rental amounts which arc overdue and delinquent at the
time of closing. Seller shall have the right to take action, including suit in
court, to collect such delinquent amounts from the applicable tenant(s) after
closing, provided that Seller shall not assert any action for eviction or other
action for possession of any tenant’s space, and Buyer agrees to pay to Seller
any such delinquent amounts, which are applicable to the period prior to
closing, but which are received by Buyer.

 

(2)                                  All amounts payable by tenants at the
Property as periodic estimates of the
costs of utilities, taxes, insurance, maintenance, repairs and other operating expenses
relating to the months or other
applicable periods up through the month or other applicable period
within which the closing occurs shall be credited to Buyer less amounts validly
spent on items for which such charges were collected in accordance with the tenant’s
lease. At least 5 days prior to closing,
Seller shall provide Buyer with reasonable documentation evidencing
amounts collected and spent. Seller
shall not receive a credit for any
estimates of expenses which are overdue and delinquent at the time of closing. Seller shall have the same rights
of collection, and Buyer the same
obligation of payment, with respect to such estimates as are set forth for rental amounts in §5.07(a)(1) above (and as limited by such provision).

 

(3)                                  All real property taxes, assessments and other
governmental impositions of any
kind or nature, including any special assessments or similar charges, accrued or imposed in any connection with the Property (collectively “Taxes”),
which relate to the tax year or other applicable
period within which the closing occurs,
to the extent such Taxes are
payable to the authorities in advance of the applicable period. With
respect to Taxes payable to the authorities in arrears after expiration of the applicable period, and with
respect to any portion of the
Taxes which are payable by any tenant directly to the authorities, no proration or adjustment shall be made.

 

(4)                                  All fees, costs and
expenses incurred in connection with the Property, including but not
limited to fees, costs and expenses under maintenance, trash removal, janitorial or other service
contracts and water, sewer and utility charges, which relate to the period within which the closing occurs, as well as any
other costs or expenses for which the tenants at the Property pay
periodic estimates or other pass-through charges as described in §5.07(a)(2) above.

 

(b)                                 The parties agree that in the event the Buyer
does not deliver to the Escrow Agent the necessary funds for closing in sufficient time for the Seller’s proceeds
thereof to be delivered to Seller’s account pursuant to § 1.02(b)
by 4:00 P.M. Eastern Standard Time on the Closing Date, then the prorations described in
Subsection (A) above shall be
recalculated as of 11:59 P.M. Eastern Standard Time the next day (or, if later, the first day
on which Seller has such funds by 1:00 P.M. Eastern Standard Time). Such recalculation shall not diminish or otherwise
affect the parties’ obligation to close
at the time and at the place required by the terms of this Agreement.

 

(c)                                  Seller shall transfer to Buyer a credit
against the Purchase Price equal to the total amount held by the Landlord as
cash security deposit money under tenant
leases in connection with the Property. Buyer shall pay or credit to Seller at
closing an amount

 

12

 

equal to the amount of any utility or other deposits posted or held by
utility suppliers or other parties with respect to the Property, and Seller
shall assign to Buyer all rights to receipt or return of such deposits. All leasing
commissions and tenant improvement
costs arising in connection with leases, lease amendments or other agreements with tenants which are entered into
by Seller on or after the
Effective Date and before closing
shall be assumed and paid by Buyer, with an adjustment of the Purchase Price to
be made at closing in order to credit to Seller any payments of such
amounts made by Seller prior to closing. In addition, Buyer shall assume and
pay, and hereby indemnifies Seller from, any commissions or fees becoming
payable to brokers or agents after closing, including commissions or fees which
become payable after closing on account
of property visits, lease negotiations or other broker or agent activities
taking place prior to closing.

 

(d)                                 The obligations
under this section shall survive closing. In the event that any errors in
prorations or adjustments made at closing are discovered after closing, the
parties shall promptly re-adjust the subject amounts, with such payments to be
made between the parties as are necessary to correct the
errors. In all events, the parties shall make such adjustments, or
confirm in writing that no such adjustments are necessary, within 120 days
after the end of the calendar year in which
the closing occurs.

 

5.08                           Closing Costs. Buyer shall pay
any and all transfer,
recordation, documentary stamp and other
similar taxes and charges imposed in connection with the delivery and recordation of a deed for the Property
and otherwise in connection with this transaction. In addition, Buyer shall pay
all costs of the examination of title and all title insurance policy premiums (including the costs of endorsements), any costs of
obtaining a current survey of the Property, and any other costs of Buyer’s due diligence with respect to the Property.
Seller and Buyer shall each pay the costs of its own counsel.

 

6.                                       Casualty and Condemnation.

 

6.01                           Substantial Event. If between the Effective Date and the Closing Date, any improvements on the Property are
destroyed or damaged to such an extent that the costs to repair are in excess of $375,000.00 (as determined
by estimates of Landlord’s insurer), or condemnation proceedings are
commenced against the Property or any part thereof which involve the elimination of rentable
space or points of access to the
Property without substitute space or alternative access being available, or on
account of any such casualty or condemnation any tenant is permitted to
terminate its lease for space at the Property (provided that this clause
will not apply if the tenant waives such right to terminate in writing prior to
closing), Buyer may terminate this
Agreement and receive a return of its Deposit.  However, in the event of such casualty
or condemnation, Buyer shall have the right to elect not to terminate this Agreement, in which case any proceeds of insurance or condemnation
awards payable by reason of such damage or condemnation shall be paid or effectively assigned to Buyer,
and in the case of casualty,
Buyer shall receive a credit against the Purchase Price equal to the amount of
any deductible under the applicable
insurance.

 

6.02                           Insubstantial Event. If between
the date hereof and the Closing Date, the improvements on the Property
are damaged to such an extent that the
costs to repair are equal to or less than $375,000.00 (as determined by
estimates of Landlord’s insurer), or if any

 

13

 

improvements on the Property are destroyed or damaged to such an extent
that the costs to repair are in excess of $375,000.00 but Buyer elects not to
terminate the Agreement, or condemnation proceedings are commenced against the
Property or any part thereof which do not involve the elimination of rentable space or points of access
to the Property or with respect to which substitute space or alternative access
is available, then (i) any proceeds of insurance or condemnation awards payable
by reason of such damage or condemnation shall be paid or effectively assigned
to Buyer, (ii) in the case of casualty, Buyer shall receive a credit against
the Purchase Price equal to the amount of any deductible under the applicable
insurance, and (ii) Buyer shall proceed to closing hereunder.

 

6.03                           Notice of Event. Seller shall notify Buyer in
writing of any casualty occurring to the Property, or any condemnation
proceeding which is commenced with respect to the Property, promptly upon learning of such casualty or
condemnation.

 

7.                                       Default/Remedies.

 

7.01                           Default by Seller. If Seller breaches or defaults in any covenant or obligation under this Agreement prior to closing (but not including the breach of any representation or warranty set
forth in §3.01 hereof), and such
breach or default is not cured within a
reasonable time after written
notice from Buyer, then Buyer shall have, as its sole option and remedy
on account thereof, the right to either (a) enforce this Agreement by specific
performance, or (b) terminate this Agreement and receive a return of the
Deposit together with a reimbursement of Buyer’s out-of-pocket costs and expenses incurred in connection
with this transaction up to (but
not exceeding) an amount of $50,000.00.

 

7.02                           Default by Buyer. If prior to closing, Buyer breaches any
covenant, warranty or representation contained in this Agreement, then Seller
shall have the right to retain the full amount of the Deposit hereunder, as
Seller’s sole remedy and liquidated damages on account of the Buyer’s default, and upon written notice of the exercise of such
right from Seller to the Escrow Agent, the Escrow Agent shall pay to Seller the
full amount of the Deposit then held by Escrow Agent. Notwithstanding
the foregoing, this provision shall not limit the Seller’s right and claim
against Buyer for any portion of the total Deposit which is not paid to Seller,
and further provided that this provision shall not limit the Seller’s right to pursue and recover on a claim with respect to
any indemnity obligations of Buyer that expressly survive termination of
this Agreement. The parties agree that the Seller’s actual damages would be
difficult to ascertain and that the
total Deposit is the parties’ best and good faith estimate of such damages
and not a penalty.

 

8.                                       Provisions Regarding Escrow Agent.

 

8.01                           Administration of Deposit. The Escrow Agent agrees to invest, hold and either forfeit to Seller or apply at closing
the Deposit in accordance with the terms and conditions of this
Agreement.

 

8.02                           Limitation on Liability. The following
provisions shall control with respect to the rights, duties and liabilities of the Escrow Agent:

 

14

 

(a)                                  The Escrow Agent acts hereunder as a
depository only and is not responsible
or liable in any manner whatsoever for the (i) sufficiency, correctness, genuineness or validity of any written instrument, notice or evidence of
a party’s receipt of any instruction or notice which is received by the Escrow Agent, or (ii) identity or
authority of any person executing
such instruction, notice or evidence.

 

(b)                                 The Escrow Agent shall have no responsibility hereunder except for the performance by it in good faith of the acts to be
performed by it hereunder, and the Escrow
Agent shall have no liability except for its own breach of this
Agreement, willful misconduct or gross negligence.

 

(c)                                  The Escrow Agent shall not be responsible for the
solvency or financial stability of any
financial institution with which Escrow Agent is directed to invest
funds escrowed hereunder.

 

(d)                                 The Escrow Agent
shall be reimbursed on an equal basis by Buyer and Seller for any reasonable expenses incurred by the Escrow
Agent arising from a dispute with respect to the amount held in escrow,
including the cost of any legal expenses and court costs incurred by the Escrow
Agent, should the Escrow Agent deem it necessary to retain an attorney with
respect to the disposition of the amount held in escrow.

 

(e)                                  In the event of a dispute between the parties
hereto with respect to the disposition of
the amount held in escrow, the Escrow Agent shall be entitled, at its own discretion, to deliver such amount
to an appropriate court of law pending resolution of the dispute.

 

9.                                       Confidentiality. Prior
to the Closing Date, Buyer expressly agrees to protect and hold in the strictest confidence the
transactions contemplated by this Agreement, the documents and information provided by Seller to Buyer under §2.01 hereof or otherwise (except for that
which is readily available to
the public), and the results of any inspections, studies or reports generated
by or on behalf of the Buyer, and
all negotiations between the parties. Notwithstanding
the foregoing, Buyer shall be permitted to disclose such matters, as
appropriate, to its officers,
directors, employees and partners and to its attorney(s), surveyor, title
insurer, broker and accountants,
provided that Buyer requires such
parties, in writing, to observe the foregoing
covenant regarding confidentiality, and Buyer shall be permitted to make such disclosures as are required by any applicable securities laws or the rules
of any securities exchange applicable to Buyer or its affiliates. Buyer further agrees
that if the transaction contemplated
by this Agreement does not occur for any reason whatsoever, Buyer shall
promptly return to Seller all copies of
documents and other written materials related to the transaction furnished
to the Buyer and such other parties
under §2.01 or otherwise.

 

10.                                 Miscellaneous.

 

10.01                     Assignment. Buyer represents to Seller that Buyer intends to purchase the
Property for Buyer’s own investment
purposes. Likewise, Buyer shall not assign or transfer this

 

15

 

Agreement or any interest herein or in the Property to any third party
without the prior written consent of the Seller. However, Seller agrees to not
unreasonably withhold its consent to any request by Buyer for consent to an assignment of this Agreement prior to
closing to a single asset entity formed solely for the purpose of holding title
to the Property for benefit of Buyer. Likewise, Seller may withhold its
consent to, and Buyer hereby agrees to not undertake, any assignment for the
purpose of transferring directly or indirectly the rights to purchase the
Property in return for monetary
consideration. Upon any assignment, the original named Buyer herein shall not be released but shall remain
primarily responsible for all duties, obligations and liabilities of the Buyer hereunder. This Agreement shall
inure to the benefit of, and be binding
upon, the successors and assigns of the parties hereto.

 

10.02                     No Personal Liability. No employee, officer, director, trustee, partner or affiliate of Seller, or any
investment manager or other agent of Seller, shall be personally liable or
responsible for any duties, obligations or liabilities of the Seller hereunder
or in any other connection with the Property or this transaction.

 

10.03                     Limitation of Assets. To the extent
that Seller has obligations or liabilities following closing under §3.01 and §3.02 or otherwise under this
Agreement, recourse for enforcement of
such obligations or liabilities (if any) shall be limited to the Seller’s
proceeds from sale of the Property hereunder or, if lesser, an amount of
$375,000.00, and no action may be taken
with respect to any greater amounts or other assets of Seller. However, this
provision shall not be construed or interpreted as creating any such obligations or liabilities of
Seller, which shall be determined by other provisions of this Agreement. In
addition, and notwithstanding
the foregoing, Buyer agrees that it shall have no rights, and shall take no action in suit or otherwise, with
respect to any breach of any representation or warranty, which is set forth in §3.01 hereof and to survive the Closing
Date under §3.02 hereof, to the extent that the actual damages suffered
by Buyer on account thereof do not exceed, in the aggregate, an amount of $25,000.00 (with the understanding
that if such damages exceed $25,000.00 Buyer
may claim the full amount up to
the maximum amount set forth in the
first sentence of this paragraph above).

 

10.04                     Limitation of Claims. No statutory or other legal rights under
federal, state or local laws and/or regulations shall apply between the parties
with respect to the Property and the transactions contemplated by this
Agreement, and the parties are liable only pursuant to the covenants, representations and/or warranties expressly stated in this
Agreement and the documents to be delivered at closing, and no other agreements, laws or regulations. Without limitation
on the foregoing, upon closing
hereunder, Buyer shall be deemed to have automatically released and discharged
forever the Seller and all employees, officers, directors, trustees,
partners and affiliates of Seller, as well as any investment manager and other
agents of Seller, from any and all
demands, claims, legal or administrative proceedings, losses, liabilities, damages,
penalties, fines, liens, judgments,
costs or expenses whatsoever (including but not limited to court costs
and attorneys’ fees and disbursements), whether direct or indirect, known or unknown, foreseen or unforeseen, that may arise
on account of or in any way be connected with (i) the
physical condition of the Property including, without limitation, all
structural and seismic elements, all mechanical, electrical, plumbing, sewage,
heating, ventilating, air conditioning and other systems, the environmental
condition of the Property and the presence
of

 

16

 

hazardous
or dangerous materials or substances on, under or about the Property, or (ii)
any law or regulation applicable
to the Property, including but not
limited to any environmental statutes, rules and regulations, any zoning laws,
building codes or other regulations, and any other federal, state or local law.

 

10.05                     Notices. All notices given in connection with this Agreement shall be
effective as of the date personally
delivered, one day after the date delivered to overnight courier, on the
day delivered by confirmed facsimile transmission, or three days after being
mailed by U.S. Mail (postage
prepaid), as the case may be, if sent
to the parties at the following addresses:

 

Seller’s
notice address:

 

c/o
LaSalle Investment Management, Inc.

100 East Pratt Street, Suite 2030

Baltimore,
Maryland 21202

Attn: Eric Hines

Fax #: (410) 347-0612

 

With a copy to:

 

c/o
LaSalle Investment Management, Inc.

4636 Old Pond Drive

Plano, Texas 75024

Attn:
Kristin L. Schneider

Fax #: (312) 601-1398

 

And a copy to:

 

Wilmer Cutler Pickering Hale and Dorr LLP

100 Light Street, Suite 1300

Baltimore, Maryland 21202

Attn:
Thomas E. D. Millspaugh

Fax #: (410) 986-2828

 

Buyer’s
notice address:

 

518 17th Street, Suite 1700

Denver,
Colorado 80202

Attn:
W. Jeffrey Jones

Fax #: (303) 228-2201

 

With a copy to:

 

Mayer,
Brown, Rowe & Maw LLP

71 South Wacker Drive

Chicago,
Illinois 60606

Attn:
Milos Markovic

Fax
#: (312) 706-8505

 

17

 

Escrow
Agent’s notice address:

 

19
East Fayette Street, Suite 300

Baltimore,
Maryland 21202

Attn:
Terry Arenson

 

10.06                     Entire Agreement. This Agreement contains all agreements of
the parties with respect to the Property and supersedes any prior discussions,
contracts or other agreements with respect thereto. No modifications to this
Agreement or waivers of any rights or benefits provided herein shall be binding
unless signed by the party against whom such modification or waiver is sought
to be enforced. Notwithstanding the foregoing, in the event that the Seller and
Buyer agree to and execute any written amendment or other document modifying
this Agreement, which does not directly modify the obligations of the Escrow
Agent hereunder, the Escrow Agent shall not be required to execute such
amendment or other agreement in order for the document to be fully effective
and enforceable.

 

10.07                     Broker. Each of Seller and Buyer represents and warrants to the other that it
has not dealt with any broker or finder in connection with the transaction
contemplated by this Agreement, except for The Flynn Company (the “Broker”), to
whom Seller shall pay a commission at closing according to separate agreement. Each
of Seller and Buyer indemnifies and holds the other harmless from and against
any losses, damages, costs or expenses (including attorneys’ fees) incurred by
such other party due to a breach of the foregoing warranty and representation.
The foregoing indemnity shall survive closing.

 

10.08                     Attorney’s Fees. If either party hereto fails to perform any
of its obligations under this Agreement or if any dispute arises between the
parties hereto concerning the meaning or interpretation of any provision of
this Agreement, whether prior to or after closing, then the defaulting party or
the party not prevailing in such dispute, as the case may be, shall pay any and
all costs and expenses incurred by the other party on account of such default
and/or in enforcing or establishing its rights hereunder, including, without
limitation, court costs and reasonable attorneys’ fees and disbursements.

 

10.09                     Perpetuities. If the rule against perpetuities would
invalidate this Agreement or any portion hereof, due to the potential failure
of an interest in property created herein to vest within a particular time,
then notwithstanding anything to the contrary herein, each such interest in
property must vest, if at all, before the passing of 21 years from the date of
this Agreement, or this Agreement shall become null and void upon the
expiration of such 21 year period and the parties shall have no further
liability hereunder.

 

10.10                     Severability. No determination by any court, governmental
body or otherwise that any provision of this Agreement or any amendment hereof
is invalid or unenforceable in any instance shall affect the validity or
enforceability of any other such

 

18

 

provision or such provision in any circumstance not controlled by such
determination. Each such provision shall be valid and enforceable to the
fullest extent allowed by, and shall be construed wherever possible as being
consistent with, applicable law.

 

10.11                     Recording. This Agreement
may not be recorded among the land records or among any other public records
without the Seller’s prior written consent (which consent may be
withheld for any reason).

 

10.12                     Counterparts. This Agreement may be signed in
counterparts and shall be fully enforceable when signed in such manner.

 

10.13                     Exchange. Seller reserves
the right to incorporate the sale and purchase of the Property
as part of a like-kind exchange under §1031
of the Internal Revenue Code, and the Buyer agrees to cooperate in such exchange, and to execute any documents
necessary therefor, provided that (i) there is no delay in the Closing
Date, (ii) Buyer does not have to take
title to any other property, and
(iii) Buyer shall incur no additional liability or costs for participating in such
exchange.

 

10.14                     Post-Closing Audits. Seller agrees, at Buyer’s expense, to
cooperate with and assist Buyer to the
extent reasonably required for Buyer to comply with any financial reporting requirements
applicable to the Buyer or any of its
affiliates following closing hereunder.

 

10.15                     Timing. The phrase “business days” as used herein shall mean the days of Monday through Friday, excepting
only federal holidays. The phrase “calendar days” as used herein shall mean all days of the week,
including all holidays. The term “days” without reference to calendar or
business days shall mean calendar days. Time is of the essence of this Agreement.

 

19

 

IN
WITNESS WHEREOF, the parties hereto
have executed this Agreement as of the dates set forth below.

 

 

	
  WITNESS:

  	
  SELLER:

  
	
   

  	
   

  
	
   

  	
  MID-ATLANTIC (PENCADER) INDUSTRIAL

  CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
  LaSalle Investment Management, Inc.

  Advisor and Duly Authorized Agent

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  (SEAL)

  
	
  Name (print):

  	
   

  	
   

  	
  Name (print):

  	
   

  	
   

  
	
   

  	
  Title (print):

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Date of execution:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  WITNESS:

  	
  BUYER:

  
	
   

  	
   

  
	
   

  	
  DCT INDUSTRIAL OPERATING

  
	
   

  	
  PARTNERSHIP LP

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  DCT Industrial Trust Inc., General Partner

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  (SEAL)

  
	
  Name (print):

  	
   

  	
   

  	
  Name (print):

  	
   

  	
   

  
	
   

  	
  Title (print):

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Date of execution:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  WITNESS:

  	
  ESCROW AGENT:

  
	
   

  	
   

  
	
   

  	
  CHICAGO TITLE INSURANCE COMPANY

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  (SEAL)

  
	
  Name (print):

  	
   

  	
   

  	
  Name (print):

  	
   

  	
   

  
	
   

  	
  Title (print):

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Date of execution:

  	
   

  	
   

  
										

 

20

 

Attachments

Exhibit
A - Plat/Description of Property

Exhibit B - List of Due
Diligence Materials

Exhibit C-l - Tenant Estoppel (Aearo Companies)

Exhibit C-2 - Tenant
Estoppel (Continental Trophies, Inc.)

 

21

 

EXHIBIT “A”

 

ALL
that certain lot, piece or parcel of land, situate in Pencader Hundred, New
Castle County, State of Delaware, and shown as Parcel 11, Pencader Corporate
Center, on a Record Minor Subdivision Plan, Drawing No. 8802526-3266,
dated February 4, 1988, prepared
by McBride & Ziegler, Inc., Professional Land Surveyors, and
recorded March 15, 1988, in the Office of the Recorder of Deeds, in and for New Castle County and State of Delaware, at
Wilmington on Microfilm Record No. 9092, and subsequently revised by Record
Minor Land Development Plan, Drawing No. 8802541-3313 dated June 10, 1988 and recorded in the Office of the Recorder as aforesaid on Microfilm
Record No. 9426 and more particularly bounded and described as follows, to wit:

 

BEGINNING
at a point in the southerly right of way line of “Pencader Drive” (a public
road at 60 feet wide), said point of Beginning being also a corner for Parcel 8, Pencader
Corporate Center, and which point of Beginning can be located along said
southerly right of way line from the Northeasterly end of a 110.00 feet radius
junction curve joining the said southerly right of way line with the easterly
right of way line of “Otts Chapel Road”, also known as Road 8, by the three following courses and
distances: (1) North 89° 37’ 57” East, 430.04 feet to a point of curvature; (2) on a curve to the
left having a radius of 3030.00 feet, an arc distance of 195.92 feet, the chord
equivalent being 195.88 feet measured
North 87° 46’ 48.5” East to the point
of tangency; and (3) North 85°
55’ 40” East, 567.04 feet to the point
of Beginning; THENCE along said southerly right of way line the three
following courses and distances; (1) North 85° 55’ 40” East, 611.49 feet to a point of curvature; (2) on a curve
to the right, having a radius of 1970.00 feet, an arc distance of 234.89 feet, the chord equivalent being 234.75
feet measured North 89° 20’ 37” East to
the point of tangency; and (3) South 87° 14’ 26” East, 150.00 feet to a corner
for Parcel 12, Pencader Corporate Center; THENCE South 10° 17’ 56” East along the westerly boundary
of Parcel 12, Pencader Corporate Center, 538.03 feet to a point in the
centerline of a branch of “Muddy Run”; THENCE along the centerline of said
branch the six following courses and
distances; (1) South 71° 04’ 43” West, 34.49 feet to a point; (2) South 11° 21’
46” West, 52.00 feet to a point;
(3) South 46° 32’ 16” West, 83.40 feet to a point; (4) North 41° 57’ 07” West
46.26 feet to a point; (5) South 77° 50’
11” West, 53.94 feet to a point; and (6) South 47° 57’ 20” West, 47.92 feet to a corner for
lands now or formerly of Thomas A. Brown; THENCE by lands now or formerly of Thomas A. Brown the
three following courses and distances: (1)
North 6° 24’ 54” West, 198.00 feet to a
point; (2) North 86° 47’ 43” West, 552.75 feet to a point; and (3) South 81° 52’
43” West, 266.17 feet to a corner for Parcel 8, Pencader Corporate Center, as
shown on Microfilm Record No. 8859; THENCE North 4° 04’ 20” West along the easterly
boundary of Parcel 8, Pencader Corporate Center, a distance of 430.08 feet to
the point of BEGINNING.

 

A-1

 

EXHIBIT B

 

LIST OF DUE DILIGENCE MATERIALS

 

(1)                                  Annual operating statements in the form periodically maintained by Seller for the prior two calendar
years and for the current year to date.

 

(2)                                  The most recent rent roll statement in the
form and with the information maintained by Seller from time to time.

 

(3)                                  Common area maintenance reconciliations for
the prior two calendar years and, to the
extent previously prepared, for the current year to date.

 

(4)                                  A schedule of capital expenditures for the
previous two calendar years and the current
year to date.

 

(5)                                  All leases (with
any amendments thereto) of any portions of the Property which are in effect on
the Effective Date.

 

(6)                                  Any roof, HVAC or
other warranties or guaranties
(if any) with respect to the Improvements.

 

(7)                                  Any survey of the Property prepared for Seller at the time of
Seller’s acquisition of the Property.

 

(8)                                  Any Phase I or
Phase II environmental audit or other study performed for Seller in connection with Seller’s acquisition of the
Property.

 

(9)                                  Bill(s) for real estate taxes and assessments
to the extent issued and
covering the period of Seller’s
ownership.

 

(10)                            All contracts or agreements to which Seller
is a party and providing for maintenance, janitorial services, trash removal, landscaping, snow removal, HVAC
maintenance and other ongoing services
in connection with the Property.

 

(11)                            Any title policy
insuring Seller and all endorsements thereto.

 

(12)                            A list of any personal
property owned by Seller and located at the Property.

 

(13)                            Documents pertaining to any litigation and/or
condemnation affecting the Property.

 

23

 

EXHIBIT C-1

 

TENANTS ESTOPPEL CERTIFICATE

 

The
undersigned, AEARO Company (“Tenant”), leasing space designated as 405 Pencader
Drive (the “Premises”) in the real estate project known as 405 Pencader Drive
(the “Property”) in Newark, Delaware, hereby certifies and covenants to LaSalle
Investment Management, Inc., any assignee of such party or other purchaser of
the Property, and their agents, successors and assigns (collectively “Purchaser”)
and any lender holding a mortgage on the Property (“Lender”), that:

 

1.                                       Tenant has possession of the Premises
pursuant to a written lease dated April 1, 2003, which lease has been amended
by agreement dated October 1, 2004 (the“First Amendment”) and by Second Amendment of lease dated September 15,
2005 (the “Second Amendment”) (Collectively the “Lease”). The Lease has not
been amended, modified or supplemented in any other manner. A copy of the
Lease, including all amendments and exhibits, is attached to this Certificate.

 

2.                                       The term of such Lease is 38 months,
commencing on July 1, 2006 and ending on
August 31, 2009. Tenant has no options to extend the term of the Lease
for an additional period, or options to terminate the Lease prior to its
scheduled expiration.

 

3.                                       Tenant presently occupies the Premises, which
is comprised of 97,002 rentable square feet of space. Tenant has no options or
rights of first offer or refusal to expand the Premises. Any improvements or
repairs required of the landlord under the Lease (“Landlord”) have been
satisfactorily completed prior to the date hereof. Any allowances and other
payments due to Tenant from the Landlord under the terms of the Lease (if any)
have been paid in full.

 

4.                                       The current monthly installment of fixed or
base rent (“Base Rent”) under the Lease is equal to $33,546.53 commencing
September 1, 2006. In addition to Base Rent, the Lease requires Tenant to pay
pro rata shares of certain operating expenses incurred at the Property,
initially in estimates and adjusted at year-end, all as additional rent (“Additional
Rent”) and as follows:

 

The percentage which is Tenant’s pro rata share is 75.28%.

Common Area Expenses: 
Pro rata share of expenses of maintenance and repairs incurred in
connection with the Property. The current monthly estimate of common area
expenses paid by Tenant is $5,343.00.

 

Insurance Premiums: 
Pro rata share of insurance premiums incurred in connection with the
property. The current monthly estimate of insurance

 

24

 

premiums paid by Tenant, if not included in common
area expenses, is $179.00.

Real Estate Taxes: 
Pro rata share of real estate taxes imposed on the property. The current
monthly estimate of real estate taxes paid by Tenant, if not included in common area
expenses, is $3,671,00.

 

5.                                       All Base Rent and Additional Rent has been
paid through    2005, and the next installment is due    1,
2005. No rent or other charges have been paid for the period beyond such date. No
additional free rent periods or other allowances or concessions remain unpaid
or unapplied.

 

6.                                       Tenant has no security deposit requirement in
Lease.

 

7.                                       Tenant is not in default under the Lease and
is current in the payment of all Base Rent, Additional Rent and other charges
required to be paid thereunder.

 

8.                                       The Lease is valid and fully enforceable. The
Tenant has not assigned the Lease or subleased the Premises to any party in any
manner, directly or indirectly, prior to the date hereof.

 

9.                                       Tenant has no set-off, counterclaim or other
action of any kind against the Landlord. The Landlord has complied with all
terms of the Lease and, to the Tenant’s knowledge, is not in breach or default
of the Lease in any manner.

 

10.                                 Tenant has no option or other right to
purchase the Premises or the building in which the Premises are located. The
Lease contains no options, rights of first refusal, rights of first offer, or
other similar rights, including but not limited to rights to terminate the
Lease [except as expressly described above].

 

11.                                 Tenant has not been notified of any potential
violations of any laws or regulations with respect to the Premises or its use
of the Premises.

 

12.                                 The address set forth in the Lease for
sending notices to Tenant under the Lease is still applicable and correct.

 

The Tenant executes this Estoppel Certificate
for benefit of the Purchaser, Lender and other parties described herein, with
the understanding that such parties intend to rely thereon. In the event of any
conflict between the terms of the Lease and this Estoppel Certificate, the
terms of this Estoppel Certificate shall govern. Likewise, the individual
executing this Certificate on behalf of Tenant hereby represents that such
party is fully authorized to execute this Estoppel

 

25

 

Certificate and to bind
Tenant thereto.

 

 

	
   

  	
  AEARO COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  (SEAL)

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Date:

  	
   

  	
   

  
						

 

26

 

EXHIBIT C-2

 

TENANT’S ESTOPPEL CERTIFICATE

 

The
undersigned, Continental Trophies, Inc. (“Tenant”), leasing space designated as
405 Pencader Drive (the “Premises”) in the real estate project known as 405
Pencader Drive (the “Property”) in Newark, Delaware, hereby certifies and
covenants to LaSalle Investment Management, Inc., any assignee of such party or
other purchaser of the Property, and their agents, successors and assigns (collectively
“Purchaser”) and any lender holding a mortgage on the Property (“Lender”),
that:

 

1.                                       Tenant has possession of the Premises
pursuant to a written lease dated December 2, 2004. The Lease has not been
amended, modified or supplemented in any other manner. A copy of the Lease,
including all amendments and exhibits, is attached to this Certificate.

 

2.                                       The term of such Lease is five (5) years,
commencing on February 1, 2005 and ending on January 31, 2010. Tenant has no
options to extend the term of the Lease for an additional period, or options to
terminate the Lease prior to its scheduled expiration.

 

3.                                       Tenant presently occupies the Premises, which
is comprised of 31,858 rentable square feet of space. Tenant has no options or
rights of first offer or refusal to expand the Premises. Any improvements or
repairs required of the landlord under the Lease (“Landlord”) have been
satisfactorily completed prior to the date hereof. Any allowances and other
payments due to Tenant from the Landlord under the terms of the Lease (if any)
have been paid in full.

 

4.                                       The current monthly installment of fixed or
base rent (“Base Rent”) under the Lease is equal to $10,672.43.  In addition to Base Rent, the Lease requires
Tenant to pay pro rata shares of certain operating expenses incurred at the
Property, initially in estimates and adjusted at year-end, all as additional
rent (“Additional Rent”) and as follows:

 

The percentage which is Tenant’s pro rata share is
24.72%.

Common Area Expenses: 
Pro rata share of expenses of maintenance and repairs incurred in
connection with the Property. The current monthly estimate of common area
expenses paid by Tenant is $1,755.73.

 

Insurance Premiums:  Pro rata share of insurance premiums incurred
in connection with the property. The current monthly estimate of insurance
premiums paid by Tenant, if not included in common area expenses, is $179.00.

 

27

 

Real Estate Taxes: 
Pro rata share of real estate taxes imposed on the property. The current
monthly estimate of real estate taxes paid by Tenant, if not included in common
area expenses, is $1,205.00.

 

5.                                       All Base Rent and Additional Rent has been
paid through     2005, and the next installment is due     1, 2005. No rent or other charges have been
paid for the period beyond such date. No additional free rent
periods or other allowances or concessions remain unpaid or unapplied.

 

6.                                       Tenant has
deposited $10,000 in cash with Landlord to be held as a security deposit under
the Lease.

 

7.                                       Tenant is not in
default under the Lease and is current in the payment of all Base
Rent, Additional Rent and other charges required to be paid thereunder.

 

8.                                       The Lease is valid and fully enforceable. The
Tenant has not assigned the Lease or subleased the Premises to any party in any manner, directly
or indirectly, prior to the date hereof.

 

9.                                       Tenant has no
set-off, counterclaim or other
action of any kind against the Landlord. The Landlord has complied with all
terms of the Lease and, to the Tenant’s
knowledge, is not in breach or default
of the Lease in any manner.

 

10.                                 Tenant has no option or other right to
purchase the Premises or the building in which the Premises are located. The
Lease contains no options, rights of first refusal, rights of first offer, or other similar rights, including but
not limited to rights to terminate the Lease.

 

11.                                 Tenant has not been notified of any potential violations of any laws or
regulations with respect to the
Premises or its use of the Premises.

 

12.                                 The address set
forth in the Lease for sending notices to Tenant under the Lease is still applicable and correct.

 

The Tenant
executes this Estoppel Certificate for benefit of the Purchaser, Lender and
other parties described herein,
with the understanding that such parties intend to rely thereon. In the event of any conflict between the terms of the Lease and this Estoppel
Certificate, the terms of this
Estoppel Certificate shall govern. Likewise,
the individual executing this Certificate
on behalf of Tenant hereby represents
that such party is fully authorized to execute this Estoppel

 

28

 

Certificate and to bind
Tenant thereto.

 

 

	
   

  	
  CONTINENTAL
  TROPHIES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  (SEAL)

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Date:

  	
   

  	
   

  
						

 

29Exhibit 10.33

 

ASSIGNMENT AND ASSUMPTION OF REAL ESTATE
CONTRACT

 

DCT INDUSTRIAL OPERATING PARTNERSHIP LP (“Assignor”), as Buyer
under that certain Sale and Purchase Agreement dated as of November 1, 2006
(the “Agreement”), by and between Assignor and MID-ATLANTIC (PENCADER)
INDUSTRIAL L.L.C., a Delaware limited liability company (the “Sellers”),
hereby assigns all of its right, title, interest and obligations in to and
under the Agreement to TRT-DCT PENCADER LLC, a Delaware limited liability
company (“Assignee”), and Assignee hereby assumes all such right, title,
interest and obligations set forth in the Agreement. This Assignment shall not
relieve Assignor of its obligations under the Agreement.

 

DATED this 5 day of December, 2006.

 

 

	
   

  	
  DCT
  INDUSTRIAL OPERATING

  
	
   

  	
  PARTNERSHIP
  LP

  
	
   

  	
   

  
	
   

  	
  By:
  DCT Industrial Trust Inc., General

  Partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  W. Jeffrey Jones

  	
   

  
	
   

  	
  Name:

  	
  W.
  Jeffrey Jones

  	
   

  
	
   

  	
  Title:

  	
  Vice President

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (Assignor)

  
							

 

 

TRT-DCT
PENCADER LLC,

a
Delaware limited liability company

 

	
   

  	
  By:

  	
  TRT-DCT Industrial JV I
  General Partnership, a Delaware general partnership, its sole

  member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  DCT Industrial Fund II
  LLC, a Delaware limited liability company, a General

  Partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  DCT Industrial Operating
  Partnership LP, a Delaware limited

  partnership, f/k/a Dividend Capital Operating Partnership LP, its sole

  member

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  By:

  	
  DCT Industrial Trust, Inc.,
  a Maryland corporation, f/k/a

  Dividend Capital Trust Inc., its general partner

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  By:

  	
  /s/ Teresa L. Corral 

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Name: Teresa L. Corral

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Its: Senior Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (Assignee)

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