Document:

cmo-ex1018_259.htm

 

Capstead Mortgage Corporation

DOCS financing facility

 

 

 

SALES AGREEMENT

 

 

October 23, 2019

 

 

 

 

 

 

 

 

 

THIS SALES AGREEMENT (this “Agreement”) dated as of October 23, 2019, between San Blas Securities LLC (doing business as Brinson Patrick, a division of San Blas Securities LLC) (the “Sales Manager”), having its principal office at 3340 Peachtree Road NE, Suite 1800, Atlanta, Georgia 30326, and Capstead Mortgage Corporation, a corporation organized and existing under the laws of the State of Maryland (the “Company”).

WHEREAS, the Company desires to issue and sell through the Sales Manager shares of its common stock, par value $0.01 per share (the “Common Stock”) and shares of it Series E Preferred Stock, par value $0.10 per share (the “Series E Preferred Stock” and together with the Common Stock, the “Company Equity Securities”) on the terms set forth in herein; and

IN CONSIDERATION of the mutual covenants contained in this Agreement, the Company and the Sales Manager agree as follows:

ARTICLE I

REPRESENTATIONS AND WARRANTIES
OF THE COMPANY

1.1For purposes of this Agreement, unless the context requires the contrary, the term “Company” shall also include all significant subsidiaries (as defined by Section 1-02 of Regulation S-X) of the Company.  The Company represents and warrants to, and agrees with, the Sales Manager that:

(a)The Company meets the requirements for use of Form S-3 under the Securities Act of 1933, as amended (the “Act”), and the rules and regulations thereunder (“Rules and Regulations”), and the Company is eligible to use Form S-3ASR for the transactions contemplated by this Agreement.  A registration statement on Form S-3ASR (Registration No. 333-[•]) with respect to, among other securities, the Company Equity Securities, including a form of prospectus, has been prepared by the Company in conformity with the requirements of the Act and the Rules and Regulations, has been filed with the Securities and Exchange Commission (the “Commission”) and has been declared effective by the Commission. No stop order suspending the effectiveness of such registration statement has been issued, and no proceeding for that purpose has been instituted or, to the knowledge of the Company, threatened by the Commission.  Additionally, the Company is eligible to file, and on or about the date hereof, will file, a new registration statement on Form S-3 with respect to the Company Equity Securities that will become effective upon filing with the Commission pursuant to Rule 462(e) under the Act.  Each such registration statement, as it may have heretofore been or may hereafter be filed, as amended, is referred to herein as the “Registration Statement,” and the final form of prospectus included in the Registration Statement, as amended or supplemented from time to time, is referred to herein as the “Prospectus.”  Any reference herein to the Registration Statement, the Prospectus, or any amendment or supplement thereto shall be deemed to refer to and include the documents incorporated (or deemed to be incorporated) by reference therein, and any reference herein to the terms “amend,” “amendment” or “supplement” with respect to the Registration Statement or Prospectus shall be deemed to refer to and include the filing after the execution hereof of any document with the Commission deemed to be incorporated by reference therein.

 

(b)Each part of the Registration Statement, when such part became or becomes effective, and the Prospectus and any amendment or supplement thereto, on the date of filing thereof with the Commission and at each Settlement Date (as hereinafter defined), conformed or will conform in all material respects with the requirements of the Act and the Rules and Regulations; each part of the Registration Statement, when such part became or becomes effective, did not or will not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading; and the Prospectus and any amendment or supplement thereto, on the date of filing thereof with the Commission and at each Settlement Date, did not or will not include an untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; except that the foregoing shall not apply to statements in or omissions from any such document in reliance upon, and in conformity with, written information furnished to the Company by or on behalf of the Sales Manager, specifically for use in the Registration Statement, the Prospectus or any amendment or supplement thereto.

(c)The documents incorporated by reference in the Registration Statement or the Prospectus, or any amendment or supplement thereto, when they became or become effective under the Act or were or are filed with the Commission under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), as the case may be, conformed or will conform in all material respects with the requirements of the Act or the Exchange Act, as applicable, and the rules and regulations of the Commission thereunder.

(d)The financial statements of the Company, together with the related schedules and notes thereto, set forth or included or incorporated by reference in the Registration Statement and Prospectus, fairly present the financial condition of the Company as of the dates indicated and the results of operations, changes in financial position, stockholders’ equity, and cash flows for the periods therein specified, in conformity with generally accepted accounting principles consistently applied throughout the periods involved (except as otherwise stated therein).  The summary and selected financial and statistical data included or incorporated by reference in the Registration Statement and the Prospectus present fairly the information shown therein and, to the extent based upon or derived from the financial statements, have been compiled on a basis consistent with the financial statements presented therein.

(e)The accountants who certified the financial statements and the supporting schedules included in the Registration Statement are and, during the periods covered by their reports, were qualified and independent public accountants as required by Rule 2-01 of Regulation S-X.

(f)The Company has been duly organized and is validly existing as a corporation in good standing under the laws of the State of Maryland.  Other than as disclosed in the Registration Statement, the Company has no subsidiaries and does not control, directly or indirectly, any corporation, partnership, limited liability company, joint venture, association or other business organization.  The Company is duly qualified and in good standing as a foreign corporation in each jurisdiction in which the character or location of its assets or properties (owned, leased or licensed) or the nature of its business makes such qualification necessary (including every jurisdiction in which it owns or leases property), except for such jurisdictions where the failure to 

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so qualify would not have a Material Adverse Effect on the Company.  For purposes of this Agreement, “Material Adverse Effect” means any adverse effect on the business, operations, properties or financial condition of the Company that is (either alone or together with all other adverse effects) material to the Company, and any material adverse effect on the transactions contemplated under this Agreement or any other agreement or document contemplated hereby or thereby.  Each of the Company’s significant subsidiaries is validly existing as a corporation, limited liability company or partnership, as applicable, in its respective jurisdiction of formation. Schedule 1.1(f) hereto identifies each of the Company’s subsidiaries that is a significant subsidiary (as defined in Section 1-02 of Regulation S-X) of the Company.  All of the issued and outstanding capital stock, limited liability company interests or partnership interests, as applicable, of each significant subsidiary has been duly authorized and validly issued, is fully paid and nonassessable and (except as otherwise disclosed or incorporated by reference in the Registration Statement and the Prospectus) is owned by the Company, directly or indirectly, free and clear of any security interest, mortgage, pledge, lien, encumbrance, claim or equity.  Except as disclosed or incorporated by reference in the Registration Statement and the Prospectus, the Company does not own, lease or license any asset or property or conduct any business outside the United States of America.  The Company has all requisite corporate or limited liability company power and authority, as applicable, and all necessary authorizations, approvals, consents, orders, licenses, certificates and permits of and from all governmental orders or regulatory bodies or any other person or entity, to own, lease, license and operate its assets and properties and conduct its business as now being conducted and as described or incorporated by reference in the Registration Statement and the Prospectus; except for such authorizations, approvals, consents, orders, licenses, certificates and permits the absence of which would not have a Material Adverse Effect; and no such authorization, approval, consent, order, license, certificate or permit contains a materially burdensome restriction other than as disclosed or incorporated by reference in the Registration Statement and the Prospectus.

(g)The Company has good title to each of the items of personal property which are reflected in the financial statements referred to in Section 1.1(d) or are referred to in the Registration Statement and the Prospectus or any document incorporated by reference therein as being owned by the Company and valid and enforceable leasehold interests in each of the items of real and personal property which are referred to in the Registration Statement and the Prospectus or any document incorporated by reference therein as being leased by the Company, in each case free and clear of all liens, encumbrances, claims, security interests and defects, other than those described in the Registration Statement and the Prospectus and those which do not and will not have a Material Adverse Effect.

(h)The Company has been subject to the requirements of Section 12 of the Exchange Act during the period commencing 12 months preceding the filing of the Registration Statement and ending on the date hereof (the “Reporting Period”) and during such Reporting Period the Company has timely filed all material and reports required under Sections 13(a), 14 and/or 15(d) of the Exchange Act.  All such materials and reports conformed in form and substance to the requirements of the Exchange Act and the rules and regulations thereunder.  As of the date of filing of the Registration Statement, and as of the date hereof, the aggregate market value of the voting and non-voting common equity held by non-affiliates of the Company was and is at least $150 million.

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(i)The Company has good and marketable title to, or leasehold interests in, all properties and assets (including, without limitation, mortgaged assets) as described in the Registration Statement and the Prospectus or any document incorporated by reference therein, owned by the Company, free and clear of all liens, charges, encumbrances or restrictions, except such as are described in the Registration Statement and the Prospectus or any document incorporated by reference therein, and except such as would not have a Material Adverse Effect on the Company.

(j)The debt financing employed by the Company to acquire its portfolio of mortgage assets is not convertible into shares of Company Equity Securities.

(k)There is no litigation or governmental or other proceeding or investigation before any court or before or by any public body or board pending or, to the knowledge of the Company, threatened (and the Company does not know of any basis therefor) against, or involving the assets, properties or businesses of the Company which would materially adversely affect the value or the operation of any such assets or otherwise have a Material Adverse Effect on the Company except as described or incorporated by reference in the Registration Statement.

(l)The Company maintains insurance (issued by insurers of recognized financial responsibility) of the types and in the amounts generally deemed adequate for its businesses and, to the knowledge of the Company, consistent with insurance coverage maintained by similar companies in similar businesses, including, but not limited to, insurance covering real and personal property owned or leased by the Company against theft, damage, destruction, acts of vandalism and all other risks customarily insured against, all of which insurance is in full force and effect.

(m)Subsequent to the respective dates as of which information is given in the Registration Statement and the Prospectus, except as described therein, (i) there has not been any material adverse change in the assets or properties, business, results of operations or condition (financial or otherwise) of the Company, whether or not arising from transactions in the ordinary course of business; (ii) the Company has not sustained any material loss or interference with its assets, businesses or properties (whether owned or leased) from fire, explosion, earthquake, flood or other calamity, whether or not covered by insurance, or from any labor dispute or any court or legislative or other governmental action, order or decree; (iii) since the date of the latest balance sheet, included or incorporated by reference in the Registration Statement and the Prospectus, except as reflected therein, the Company has not undertaken any liability or obligation, direct or contingent, except such liabilities or obligations undertaken in the ordinary course of business; and (iv) there has not been any transaction that is material to the Company, except transactions in the ordinary course of business or as otherwise disclosed in the Registration Statement and the Prospectus.

(n)There is no document or contract of a character required to be described in the Registration Statement or the Prospectus or to be filed as an exhibit to the Registration Statement that is not described or filed as required.  Each document, instrument, contract and agreement of the Company described in the Registration Statement or the Prospectus or incorporated by reference therein or listed as exhibits to the Registration Statement is in full force and effect and is valid and enforceable by and against the Company in accordance with their terms, 

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assuming the due authorization, execution and delivery thereof by each of the other parties thereto except as otherwise disclosed in the Registration Statement or Prospectus.  The Company is not, nor to the knowledge of the Company is any other party, in default in the observance or performance of any term or obligation to be performed by it under any such agreement, and no event has occurred which with notice or lapse of time or both would constitute such a default, which default or event would have a Material Adverse Effect.  No default exists, and no event has occurred which with notice or lapse of time or both would constitute a default, in the due performance and observance of any term, covenant or condition, by the Company of any other agreement or instrument to which the Company is a party or by which it or its properties or business may be bound or affected, which default or event would have a Material Adverse Effect.

(o)The Company is not in violation of any term or provision of its charter, by-laws or operating agreement, as applicable.  The Company is not in violation of any franchise, license, permit, judgment, decree, order, statute, rule or regulation, where the consequences of such violation would have a Material Adverse Effect.

(p)Neither the execution, delivery and performance of this Agreement by the Company nor the consummation of any of the transactions contemplated hereby (including, without limitation, the issuance and sale by the Company of the Company Equity Securities) will give rise to a right to terminate or accelerate the due date of any payment due under, or conflict with or result in the breach of any term or provision of, or constitute a default (or an event which with notice or lapse of time or both would constitute a default) under, or require any consent or waiver under, or result in the execution or imposition of any lien, charge, encumbrance, claim, security interest, restriction or defect upon any properties or assets of the Company pursuant to the terms of, any indenture, mortgage, deed of trust or other agreement or instrument to which the Company is a party or by which the Company is bound, or any of its properties or businesses are bound, or any franchise, license, permit, judgment, decree, order, statute, rule or regulation applicable to the Company or violate any provision of the charter or by-laws of the Company, except for such consents or waivers which have already been obtained and are in full force and effect.

(q)All of the outstanding shares of capital stock of the Company have been duly authorized and validly issued and are fully paid and nonassessable and none of the shares were issued in violation of any preemptive or other similar right.  The Company Equity Securities, when issued and sold pursuant to this Agreement, will be duly authorized and validly issued, fully paid and nonassessable and will not be issued in violation of any preemptive or other similar right.  Except as disclosed in the Registration Statement and the Prospectus, there is no outstanding option, warrant or other right calling for the issuance of, and there is no commitment, plan or arrangement to issue, any capital stock of the Company or any security convertible into or exercisable or exchangeable for such capital stock, except for standard dividend reinvestment plans.  The Company Equity Securities conform in all material respects to all statements relating thereto contained in the Registration Statement and the Prospectus.  Any stock options issued by the Company have been issued in compliance with law, and the terms and provisions of such stock options were established in compliance with law.

(r)Subsequent to the respective dates as of which information is given in the Registration Statement and the Prospectus, except as (x) described or referred to therein, or (y) are 

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not material (as to clauses (i) and (ii) only), are consistent with past practice (as to clauses (i) and (ii) only), and are publicly disclosed, the Company has not (i) issued any securities or incurred any liability or obligation, direct or contingent, except such liabilities or obligations incurred in the ordinary course of business including, without limitation, debt financing to acquire and develop properties, (ii) entered into any transaction not in the ordinary course of business or (iii) declared or paid any dividend or made any distribution on any shares of its capital stock or redeemed, purchased or otherwise acquired or agreed to redeem, purchase or otherwise acquire any shares of its capital stock. 

(s)Except as disclosed in the Registration Statement and Prospectus, no holder of any security of the Company has the right, which has not been waived, to have any security owned by such holder included in the Registration Statement or any right to demand registration of any security owned by such holder. 

(t)All necessary corporate or limited liability company action, as applicable, has been duly and validly taken by the Company to authorize the execution, delivery and performance of this Agreement and the issuance and sale of the Company Equity Securities by the Company.  This Agreement has been duly and validly authorized, executed and delivered by the Company and constitutes and will constitute the legal, valid and binding obligation of the Company, enforceable against the Company in accordance with its terms.  Except for any “blue sky” filings or Trading Market listing applications to be filed pursuant hereto, each approval, consent, order, authorization, designation, declaration or filing by or with any regulatory, administrative or other governmental body necessary in connection with the execution and delivery by the Company of this Agreement and the consummation of the transactions contemplated hereby and the issuance and sale of the Company Equity Securities by the Company has been obtained or made and is in full force and effect.  The Company will use its best reasonable efforts to cause the Company Equity Securities to be listed for trading on the Trading Market.  For purposes of this Agreement, the “Trading Market” is (i) the New York Stock Exchange, Inc., and (ii) each other nationally recognized securities exchange on which any of the Company Equity Securities is admitted for trading.

(u)The Company has not incurred any liability for a fee, commission or other compensation on account of the employment of a broker or finder in connection with the transactions contemplated by this Agreement other than as contemplated hereby or as described in the Registration Statement. 

(v)The Company is conducting its business in compliance with all applicable laws, rules and regulations of the jurisdictions in which it is conducting business, except where the failure to be so in compliance would not have a Material Adverse Effect.

(w)No transaction has occurred between or among the Company and any of its officers or directors or any affiliate or affiliates of any such officer or director that is required to be described in and is not described in the Registration Statement and the Prospectus. 

(x)The Company has not taken, nor will it take, directly or indirectly, any action designed to or which might reasonably be expected to cause or result in, or which has constituted or which might reasonably be expected to constitute, the stabilization or manipulation 

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of the price of the Company Equity Securities to facilitate the sale or resale of any of the Company Equity Securities.

(y)The Company has filed all federal, state, local and foreign tax returns which are required to be filed through the date hereof (and will file all such tax returns when and as required to be filed after the date hereof), or has received extensions thereof, and has paid all taxes shown on such returns to be due on or prior to the date hereof (and will pay all taxes shown on such returns to be due after the date hereof) and all assessments received by it to the extent that the same are material and have become due, except where the failure to file such a return or pay such amount would not have a Material Adverse Effect.

(z)The Company has met the qualification requirements for a “real estate investment trust” during its taxable years ending on or after December 31, 1999 and its proposed method of operations will enable it to continue to meet the requirements for qualification and taxation as a “real estate investment trust” under the Internal Revenue Code of 1986, as amended (the “Code”), assuming no change in the applicable underlying law.  The Company does not know of any event that would cause or is likely to cause the Company to fail to qualify as a “real estate investment trust” at any time.

(aa)The Company is not an “investment company” within the meaning of the Investment Company Act of 1940, as amended.

(bb)The Company’s systems of internal accounting controls taken as a whole are sufficient to meet the broad objectives of internal accounting control insofar as those objectives pertain to the prevention or detection of errors or irregularities in amounts that would be material in relation to the Company’s financial statements; and, to the best of the Company’s knowledge, neither the Company nor any employee or agent thereof has made any payment of funds of the Company or received or retained any funds, and no funds of the Company have been set aside to be used for any payment, in each case in violation of any law, rule or regulation.

(cc)There is and has been no failure on the part of the Company or any of the Company’s directors or officers, in their capacities as such, to comply with any provision of the Sarbanes-Oxley Act of 2002 and the rules and regulations promulgated in connection therewith, including without limitation Section 402 related to loans and Sections 302 and 906 related to certificates.

ARTICLE II

SALE AND DELIVERY OF SECURITIES

2.1(a)On the basis of the representations, warranties and agreements herein contained, but subject to the terms and conditions herein set forth, the Company agrees to issue and sell through the Sales Manager, as agent, and the Sales Manager agrees to sell, as agent for the Company, on a best efforts basis at prevailing market prices, shares of Company Equity Securities during the term of this Agreement on the terms set forth herein.  Company Equity Securities will be sold from time to time as described in the Registration Statement and Prospectus, in amounts and, subject to price limitations, as directed by the Company and as agreed to by the 

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Sales Manager; provided that nothing in this Agreement shall be construed to require the Company to sell any shares of Company Equity Securities through the Sales Manager.  

(b)The Company or the Sales Manager may, upon notice to the other party hereto by telephone (confirmed promptly by telecopy or e-mail), at any time and from time to time suspend the offering of Company Equity Securities; provided, however, that such suspension shall not affect or impair the parties’ respective obligations with respect to the Company Equity Securities sold hereunder prior to the giving of such notice.

(c)The compensation to the Sales Manager for sales of Company Equity Securities sold under this Agreement shall be at the rate of up to:  3.0% of the gross sales price per share (“Sales Proceeds”) as agreed to in writing by the Sales Manager and the Company.  The remaining proceeds, after further deduction for any transaction fees imposed by any governmental or self-regulatory organization in respect to such sale shall constitute the net proceeds to the Company for such Company Equity Securities (the “Net Proceeds”).  For purposes of the first sentence of this section 2.1(c), Sales Proceeds include sales proceeds from sales of Company Equity Securities by the Sales Manager for the account of the Company, whether under this Agreement, or otherwise.

(d)The Company shall open and maintain a trading account or accounts (the “Trading Accounts”) at a clearing agent designated by the Sales Manager to facilitate the transactions contemplated by this Agreement.  The Net Proceeds from the sale of any Company Equity Securities shall be available in the Trading Accounts on the third business day (or such other day as is industry practice for regular-way trading) following each sale of any Company Equity Securities (each, a “Settlement Date”).  The Company shall effect the delivery of the applicable number of shares of Company Equity Securities to an account or accounts designated by the Sales Manager at The Depository Trust Company on or before the Settlement Date of each sale hereunder.  The Sales Manager’s compensation shall be withheld from the Sales Proceeds on each Settlement Date and shall be paid to the Sales Manager.

(e)At each Settlement Date, the Company shall be deemed to have affirmed each representation, warranty, covenant and other agreement contained in this Agreement.  Any obligation of the Sales Manager under this Agreement shall be subject to the continuing accuracy of the representations and warranties of the Company herein, to the performance by the Company of its obligations hereunder and to the continuing satisfaction of the additional conditions specified in Article IV of this Agreement.

(f)If the Company shall default on its obligation to deliver Company Equity Securities on any Settlement Date, the Company shall (i) hold the Sales Manager harmless against any loss, claim or damage arising from or as a result of such default by the Company and (ii) pay the Sales Manager any commission to which it would otherwise be entitled absent such default.

ARTICLE III

COVENANTS OF THE COMPANY

3.1The Company covenants and agrees with the Sales Manager that:

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(a)As promptly as practicable after the date of this Agreement, the Company will (if not previously filed) file the Registration Statement to permit sales of the Company Equity Securities under the Act.  The Company will use its best reasonable efforts to cause the Registration Statement to become effective as promptly as possible thereafter.

(b)During the period in which the Sales Manager has been requested to offer and sell Company Equity Securities, the Company will notify the Sales Manager promptly of the time when any subsequent amendment to the Registration Statement has become effective or any subsequent supplement to the Prospectus has been filed and of any request by the Commission for any amendment or supplement to the Registration Statement or the Prospectus or for additional information.  The Company will prepare and file with the Commission, promptly upon the Sales Manager’s reasonable request, any amendments or supplements to the Registration Statement or Prospectus that, in the Sales Manager’s reasonable opinion, may be necessary or advisable in connection with the sale of the Company Equity Securities pursuant to this Agreement.  The Company will not file any amendment or supplement to the Registration Statement or Prospectus (other than a supplement to the Prospectus that (i) does not materially change the information about the Company or its business, operations, properties or financial condition previously disclosed in the Registration Statement or Prospectus, (ii) relates to a “follow-on” offering of Company Equity Securities by the Company, or (iii) relates to an offering of securities other than the Company Equity Securities (each, an “Excluded Supplement”)) unless a copy thereof has been submitted to the Sales Manager a reasonable period of time before the filing and the Sales Manager has not reasonably objected thereto; and it will notify the Sales Manager at the time of filing thereof of any document that upon filing is deemed to be incorporated by reference in the Registration Statement or Prospectus, which will then be available on the Company’s website at www.capstead.com (and will furnish to the Sales Manager any such document that is not available on the Company’s website).  The Company will cause each amendment to the Registration Statement or supplement to the Prospectus and each filing or report incorporated therein, to be prepared in form and substance as required by the Act, the Rules and Regulations, the Exchange Act and the rules and regulations thereunder, and to be timely filed with the Commission.

(c)The Company will advise the Sales Manager, promptly after it shall receive notice or obtain knowledge thereof, of the issuance by the Commission of any stop order suspending the effectiveness of the Registration Statement, of the suspension of the qualification of any Company Equity Securities for offering or sale in any jurisdiction, or of the initiation or threatening of any proceeding for any such purpose; and it will promptly use its best reasonable efforts to prevent the issuance of any stop order or to obtain its withdrawal if such a stop order should be issued.

(d)Within the time during which a prospectus relating to any Company Equity Securities is required to be delivered under the Act, the Company will comply with all requirements imposed upon it by the Act and by the Rules and Regulations, as from time to time in force, so far as necessary to permit the continuance of sales of or dealings in the Company Equity Securities as contemplated by the provisions hereof and the Prospectus.  If during such period any event occurs as a result of which the Prospectus, as then amended or supplemented, would include an untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in the light of the circumstances then existing, not misleading, or if during such period it is necessary to amend or supplement the Registration Statement or Prospectus 

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to comply with the Act, the Company will promptly notify the Sales Manager to suspend the offering of Company Equity Securities during such period and the Company will amend or supplement the Registration Statement or Prospectus (at the expense of the Company) so as to correct such statement or omission or effect such compliance and will use its best reasonable efforts to have any amendment or supplement to the Registration Statement or Prospectus declared effective as soon as possible, unless the Company has reasonable business reasons to defer public disclosure of the relevant information.

(e)The Company will use its best reasonable efforts to qualify any Company Equity Securities for sale under the securities laws of such jurisdictions as the Sales Manager designates and to continue such qualifications in effect so long as required for the sale of any Company Equity Securities, except that the Company shall not be required in connection therewith to qualify as a foreign corporation or to execute a general consent to service of process in any jurisdiction.

(f)The Company will furnish to the Sales Manager and its legal counsel (at the expense of the Company) copies of the Registration Statement, the Prospectus (including all documents incorporated by reference therein) and all amendments and supplements to the Registration Statement or Prospectus that are filed with the Commission during the period in which a prospectus relating to any Company Equity Securities is required to be delivered under the Act (including all documents filed with the Commission during such period that are deemed to be incorporated by reference therein), in each case as soon as available and in such quantities as the Sales Manager may from time to time reasonably request.  The Company will take such action as to enable the conditions set forth in Rule 153(b) of the Rules and Regulations to be satisfied at all times that the Sales Manager is selling any Company Equity Securities.

(g)The Company will make generally available to its security holders as soon as practicable, but in any event not later than 15 months after the end of the Company’s current fiscal quarter, an earnings statement (which need not be audited) covering a 12-month period that satisfies the provisions of Section 11(a) of the Act and Rule 158 of the Rules and Regulations.

(h)The Company, whether or not the transactions contemplated hereunder are consummated or this Agreement is terminated, will pay all of its expenses incident to the performance of its obligations hereunder (including, but not limited to, any transaction fees imposed by any governmental or self-regulatory organization with respect to transactions contemplated by this Agreement and any blue sky fees) and will pay the expenses of printing all documents relating to the offering.  The Company will reimburse the Sales Manager for its reasonable out-of-pocket costs and expenses incurred in connection with entering into this Agreement, including, without limitation, reasonable travel, reproduction, printing and similar expenses, as well as the reasonable fees and disbursements of its legal counsel.

(i)The Company shall use its best reasonable efforts to list, subject to notice of issuance, the Company Equity Securities on the applicable Trading Market.

(j)The Company will apply the Net Proceeds from the sale of the Company Equity Securities as set forth in the Prospectus.

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(k)The Company will not, directly or indirectly, offer or sell any shares of equity securities (other than the Company Equity Securities) or securities convertible into or exchangeable for, or any rights to purchase or acquire, equity securities (other than the Company Equity Securities) during the period from the date of this Agreement through the final Settlement Date for the sale of any Company Equity Securities hereunder without (i) giving the Sales Manager at least one business day prior written notice specifying the nature of the proposed sale and the date of such proposed sale and (ii) suspending activity under this program for such period of time as may reasonably be determined by agreement of the Company and the Sales Manager; provided, however, that no such notice and suspension shall be required in connection with the Company’s issuance or sale of (i) shares of equity securities pursuant to any employee or director stock option or benefits plan, stock ownership plan, dividend reinvestment plan, as such plans may be amended from time to time, and (ii) equity securities issuable upon conversion of securities or the exercise of warrants, options or other rights in effect or outstanding on the date hereof.  Notwithstanding the foregoing, this paragraph (k) shall not apply during periods that the Company is neither selling Company Equity Securities through the Sales Manager nor has requested the Sales Manager to sell Company Equity Securities.

(l)The Company will, at any time during the term of this Agreement, as supplemented from time to time, advise the Sales Manager immediately after it shall have received notice or obtain knowledge thereof, of any information or fact that would alter or affect any opinion, certificate, letter and other document provided to the Sales Manager pursuant to Article IV herein.

(m)Each time that the Registration Statement or the Prospectus shall be amended or supplemented (other than an Excluded Supplement) and on the dates specified in Section 4.1(f) below, the Company shall (unless the Company is not then selling Company Equity Securities through the Sales Manager and has not requested the Sales Manager to sell Company Equity Securities) furnish or cause to be furnished to the Sales Manager forthwith a certificate, in form and substance satisfactory to the Sales Manager to the effect that the statements contained in the certificates referred to in Section 4.1(f) below that were last furnished to the Sales Manager are true and correct at the time of such amendment or supplement, as the case may be, as though made at and as of such time (except that such statements shall be deemed to relate to the Registration Statement and the Prospectus as amended and supplemented to such time) or, in lieu of such certificates, certificates of the same tenor as the certificates referred to in said Section 4.1(f) below, modified as necessary to relate to the Registration Statement and the Prospectus as amended and supplemented to the time of delivery of such certificate.

(n)Each time that a post-effective amendment to the Registration Statement is declared effective or the Company files an Annual Report on Form 10-K, and at such other times as may be reasonably requested by the Sales Manager, the Company shall (unless the Company is not then selling Company Equity Securities through the Sales Manager and has not requested the Sales Manager to sell Company Equity Securities) furnish or cause to be furnished forthwith to the Sales Manager and to its legal counsel, a written opinion of Hunton Andrews Kurth  LLP, counsel to the Company (“Company Counsel”), or other counsel reasonably satisfactory to the Sales Manager, dated the date of effectiveness of such amendment or the date of filing with the Commission of such document, as the case may be, in form and substance satisfactory to the Sales Manager, of the same tenor as the opinion referred to in Section 4.1(d) below, but modified as 

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necessary to relate to the Registration Statement and the Prospectus as amended and supplemented to the time of delivery of such opinion; provided , however that in lieu of such opinion, the Company may furnish the Sales Manager with a letter from Company Counsel to the effect that the Sales Manager may rely on the prior opinion delivered pursuant to Section 4.1(d) below to the same extent as if it were dated the date of such letter (except that statements in such prior opinion shall be deemed to relate to the Registration Statement and the Prospectus as amended or supplemented to the time of delivery of such letter).

(o)Each time that a post-effective amendment to the Registration Statement is declared effective or the Company files an Annual Report on Form 10-K, and at such other times as may be reasonably requested by the Sales Manager, the Company shall (unless the Company is not then selling Company Equity Securities through the Sales Manager and has not requested the Sales Manager to sell Company Equity Securities) cause Ernst & Young LLP, or other independent accountants then retained by the Company, forthwith to furnish to the Sales Manager a letter, dated the date of effectiveness of such amendment, or the date of filing of such supplement or other document with the Commission, as the case may be, in form and substance satisfactory to the Sales Manager, of the same tenor as the letter referred to in Section 4.1(e) below but modified to relate to the Registration Statement and the Prospectus, as amended and supplemented to the date of such letter.  

(p)The Company represents and agrees that, unless it obtains the prior consent of the Sales Manager, and the Sales Manager represents and agrees that, unless it obtains the prior consent of the Company, it has not made and will not make any offer relating to any Company Equity Securities that would constitute an Issuer Free Writing Prospectus, or that would otherwise constitute a “free writing prospectus” as defined in Rule 405, required to be filed with the Commission.  Any such free writing prospectus consented to by the Company and the Sales Manager is hereinafter referred to as a “Permitted Free Writing Prospectus.”  The Company represents that it has treated and agrees that it will treat each Permitted Free Writing Prospectus as an “issuer free writing prospectus,” as defined in Rule 433 of the Act, and has complied and will comply with the requirements of Rules 164 and 433 of the Act, as applicable to any Permitted Free Writing Prospectus, including timely Commission filings where required, legending and record keeping.

For the purposes of this Section, “Issuer Free Writing Prospectus” means any “issuer free writing prospectus,” as defined in Rule 433 of the Act, relating to any Company Equity Securities in the form filed or required to be filed with the Commission or, if not required to be filed, in the form retained in the Company’s records pursuant to Rule 433(g) of the Act.

Notwithstanding the foregoing, the Company shall not be required to obtain the consent of the Sales Manager with respect to the offering of any securities other than Company Equity Securities or any “follow-on” offering of Company Equity Securities pursuant to an Issuer Free Writing Prospectus.

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ARTICLE IV

CONDITIONS OF THE SALES MANAGER’S OBLIGATIONS

4.1The obligations of the Sales Manager to sell the Company Equity Securities as provided herein shall be subject to the accuracy, as of the date hereof, and as of each Settlement Date contemplated under this Agreement, of the representations and warranties of the Company herein, to the performance by the Company of its obligations hereunder and to the following additional conditions:

(a)The Registration Statement has been declared effective.  No stop order suspending the effectiveness of the Registration Statement shall have been issued and no proceeding for that purpose shall have been instituted or, to the knowledge of the Company or the Sales Manager, threatened by the Commission, and any request of the Commission for additional information (to be included in the Registration Statement or the Prospectus or otherwise) shall have been complied with to the Sales Manager’s reasonable satisfaction.  The Company Equity Securities shall have been listed for trading on the Trading Market.

(b)The Sales Manager shall not have advised the Company that the disclosures in the Registration Statement or the Prospectus, or any amendment or supplement thereto, are not reasonably acceptable to the Sales Manager.

(c)Except as contemplated in the Prospectus, subsequent to the respective dates as of which information is given in the Registration Statement and the Prospectus, there shall not have been any material adverse change in the capital stock of the Company, or any material adverse change, or any development that may reasonably be expected to cause a material adverse change, in the condition (financial or other), business, net worth or results of operations of the Company, or any adverse change in the rating assigned to any securities of the Company.

(d)(i)The Sales Manager shall have received at the date of the first sale of Company Equity Securities hereunder (the “Commencement Date”) and at every other date specified in Section 3.1(n) hereof, opinions of Company Counsel, dated as of the Commencement Date and dated as of such other date, in a form reasonably acceptable to the Sales Manager.

(ii)The Sales Manager shall have received a letter from Company Counsel authorizing the Sales Manager to rely on the opinion on tax matters delivered by Company Counsel as Exhibit 8.1 to the Registration Statement.

(e)At the Commencement Date and at such other dates specified in Section 3.1(o) hereof, the Sales Manager shall have received a “comfort letter” from Ernst & Young LLP, independent public accountants for the Company, or other independent accountants then retained by the Company, dated the date of delivery thereof, in form and substance satisfactory to the Sales Manager.

(f)The Sales Manager shall have received from the Company a certificate, or certificates, signed by the Chief Financial Officer and Senior Vice President of the Company, dated as of the Commencement Date and (unless the Company is not then selling Company Equity 

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Securities through the Sales Manager and has not requested the Sales Manager to sell Company Equity Securities) dated as of the first business day of each calendar quarter thereafter and such other times as the Sales Manager shall request (each, a “Certificate Date”), to the effect that, to the best of their knowledge based upon reasonable investigation:

(i)The representations and warranties of the Company in this Agreement are true and correct, as if made at and as of the Commencement Date or the Certificate Date (as the case may be), and the Company has complied with all the agreements and satisfied all the conditions on its part to be performed or satisfied at or prior to the Commencement Date and each such Certificate Date (as the case may be);

(ii)No stop order suspending the effectiveness of the Registration Statement has been issued, and no proceeding for that purpose has been instituted or, to the knowledge of such officer after due inquiry, is threatened, by the Commission;

(iii)Since the date of this Agreement there has occurred no event required to be set forth in an amendment or supplement to the Registration Statement or Prospectus that has not been so set forth and there has been no document required to be filed under the Exchange Act and the rules and regulations of the Commission thereunder that upon such filing would be deemed to be incorporated by reference in the Prospectus that has not been so filed; and

(iv)Since the date of this Agreement, there has not been any material adverse change in the assets or properties, business, results of operations or condition (financial or otherwise) of the Company, which has not been described in an amendment or supplement to the Registration Statement or Prospectus (directly or by incorporation).

(g)At the Commencement Date and on each Settlement Date, the Company shall have furnished to the Sales Manager such appropriate further information, certificates and documents as the Sales Manager may reasonably request.

(h)At the Commencement Date and on each Settlement Date, the Company shall have listed for quotation the Company Equity Securities on the Trading Market.

All such opinions, certificates, letters and other documents will be in compliance with the provisions hereof only if they are satisfactory in form and substance to the Sales Manager.  The Company will furnish the Sales Manager with such conformed copies of such opinions, certificates, letters and other documents as the Sales Manager shall reasonably request.

ARTICLE V

INDEMNIFICATION AND CONTRIBUTION

5.1(a)The Company agrees to indemnify and hold harmless the Sales Manager and each person, if any, who controls the Sales Manager within the meaning of Section 15 of the Act or Section 20 of the Exchange Act, as follows:

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(i)against any and all loss, liability, claim, damage and expense whatsoever, as incurred, arising out of any untrue statement or alleged untrue statement of a material fact contained in the representations in this Agreement or contained in the Registration Statement (or any amendment thereto), or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading or arising out of any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus or the Prospectus (or any amendment or supplement thereto) or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading;

(ii)against any and all loss, liability, claim, damage and expense whatsoever, as incurred, to the extent of the aggregate amount paid in settlement of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, if such settlement is effected with the written consent of the Company; and

(iii)against any and all expense whatsoever, as incurred (including, subject to Section 5(c) hereof, the reasonable fees and disbursements of legal counsel chosen by the Sales Manager), reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (ii) above;

provided, however, that this indemnity agreement shall not apply to any loss, liability, claim, damage or expense to the extent arising out of any untrue statement or omission or alleged untrue statement or omission made in reliance upon and in conformity with written information furnished to the Company by the Sales Manager expressly for use in the Registration Statement (or any amendment thereto) or any preliminary prospectus or the Prospectus (or any amendment or supplement thereto).

(b)The Sales Manager agrees to indemnify and hold harmless the Company and its directors and each officer of the Company who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the Act or Section 20 of the Exchange Act against any and all loss, liability, claim, damage and expense described in the indemnity contained in Section 5.1(a), as incurred, but only with respect to untrue statements or omissions, or alleged untrue statements or omissions, made in the Registration Statement (or any amendments thereto) or any preliminary prospectus or the Prospectus (or any amendment or supplement thereto) in reliance upon and in conformity with written information furnished to the Company by the Sales Manager expressly for use in the Registration Statement (or any amendment thereto) or such preliminary prospectus or the Prospectus (or any amendment or supplement thereto).  The total liability of the Sales Manager under this Section 5.1(b) shall not exceed the total actual sales price of Company Equity Securities sold by the Sales Manager that is the subject of the dispute.

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(c)Any indemnified party that proposes to assert the right to be indemnified under this Article V will, promptly after receipt of notice of commencement of any action against such party in respect of which a claim is to be made against an indemnifying party or parties under this Article V, notify each such indemnifying party of the commencement of such action, enclosing a copy of all papers served, but the omission so to notify such indemnifying party will not relieve the indemnifying party from any liability that it might have to any indemnified party to the extent it is not materially prejudiced as a result thereof.  If any such action is brought against any indemnified party and it notifies the indemnifying party of its commencement, the indemnifying party will be entitled to participate in and, to the extent that it elects by delivering written notice to the indemnified party promptly after receiving notice of the commencement of the action from the indemnified party, jointly with any other indemnifying party similarly notified, to assume the defense of the action, with legal counsel reasonably satisfactory to the indemnified party, and after notice from the indemnifying party to the indemnified party of its election to assume the defense, the indemnifying party will not be liable to the indemnified party for any legal or other expenses except as provided below and except for the reasonable costs of investigation subsequently incurred by the indemnified party in connection with the defense.  The indemnified party will have the right to employ its own legal counsel in any such action, but the fees, expenses and other charges of such legal counsel will be at the expense of such indemnified party unless (1) the employment of legal counsel by the indemnified party has been authorized in writing by the indemnifying party, (2) the indemnified party has reasonably concluded (based on written advice of legal counsel) that there may be legal defenses available to it or other indemnified parties that are different from or in addition to those available to the indemnifying party, (3) a conflict or potential conflict exists (based on written advice of legal counsel to the indemnified party) between the indemnified party and the indemnifying party (in which case the indemnifying party will not have the right to direct the defense of such action on behalf of the indemnified party) or (4) the indemnifying party has not in fact employed legal counsel to assume the defense of such action within a reasonable time after receiving notice of the commencement of the action, in each of which cases the reasonable fees, disbursements and other charges of legal counsel will be at the expense of the indemnifying party or parties.  It is understood that the indemnifying party or parties shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable fees, disbursements and other charges of more than one separate firm admitted to practice in such jurisdiction at any one time for all such indemnified party or parties.  All such fees, disbursements and other charges will be reimbursed by the indemnifying party promptly as they are incurred.  An indemnifying party will not be liable for any settlement of any action or claim effected without its written consent (which consent will not be unreasonably withheld).

(d)In order to provide for just and equitable contribution in circumstances in which the indemnification provided for in the foregoing paragraphs of this Article V is applicable in accordance with its terms but for any reason is held to be unavailable from the Company or the Sales Manager, the Company and the Sales Manager will contribute to the total losses, claims, liabilities, expenses and damages (including any investigative, legal and other expenses reasonably incurred in connection with, and any amount paid in settlement of, any action, suit or proceeding or any claim asserted, but after deducting any contribution received by the Company from persons other than the Sales Manager, such as persons who control the Company within the meaning of the Act, officers of the Company who signed the Registration Statement and directors of the Company, who also may be liable for contribution) to which the Company and the Sales Manager 

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may be subject in such proportion as shall be appropriate to reflect the relative benefits received by the Company on the one hand and the Sales Manager on the other.  The relative benefits received by the Company on the one hand and the Sales Manager on the other hand shall be deemed to be in the same proportion as the total net proceeds from the offering (before deducting expenses) received by the Company bear to the total compensation (before deducting expenses) received by the Sales Manager from the sale of Company Equity Securities on behalf of the Company.  If, but only if, the allocation provided by the foregoing sentence is not permitted by applicable law, the allocation of contribution shall be made in such proportion as is appropriate to reflect not only the relative benefits referred to in the foregoing sentence but also the relative fault of the Company, on the one hand, and the Sales Manager, on the other, with respect to the statements or omission which resulted in such loss, claim, liability, expense or damage, or action in respect thereof, as well as any other relevant equitable considerations with respect to such offering.  Such relative fault shall be determined by reference to whether the untrue or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or the Sales Manager, the intent of the parties and their relative knowledge, access to information and opportunity to correct or prevent such statement or omission.  The Company and the Sales Manager agree that it would not be just and equitable if contributions pursuant to this Section 5.1(d) were to be determined by pro rata allocation or by any other method of allocation which does not take into account the equitable considerations referred to herein.  The amount paid or payable by an indemnified party as a result of the loss, claim, liability, expense or damage, or action in respect thereof, referred to above in this Section 5.1(d) shall be deemed to include, for the purpose of this Section 5.1(d), any legal or other expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action or claim.  Notwithstanding the foregoing provisions of this Section 5.1(d), the Sales Manager shall not be required to contribute any amount in excess of the amount by which the total actual sales price at which Company Equity Securities sold by the Sales Manager exceeds the amount of any damages that the Sales Manager has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission and no person found guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) will be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation.  For purposes of this Section 5.1(d), any person who controls a party to this Agreement within the meaning of the Act will have the same rights to contribution as that party, and each officer and director of the Company who signed the Registration Statement will have the same rights to contribution as the Company, subject in each case to the provisions hereof.  Any party entitled to contribution, promptly after receipt of notice of commencement of any action against such party in respect of which a claim for contribution may be made under this Section 5.1(d), will notify any such party or parties from whom contribution may be sought, but the omission so to notify will not relieve that party or parties from whom contribution may be sought from any other obligation it or they may have under this Section 5.1(d).  No party will be liable for contribution with respect to any action or claim settled without its written consent (which consent will not be unreasonably withheld).

(e)The indemnity and contribution provided by this Article V shall not relieve the Company and the Sales Manager from any liability the Company and the Sales Manager may otherwise have (including, without limitation, any liability the Sales Manager may have for a breach of its obligations under Article II hereof).

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ARTICLE VI

REPRESENTATIONS AND AGREEMENTS TO SURVIVE DELIVERY

6.1All representations, warranties and agreements of the Company herein or in certificates delivered pursuant hereto, and the agreements of the Sales Manager contained in Article V hereof, shall remain operative and in full force and effect regardless of any investigation made by or on behalf of the Sales Manager or any controlling persons, or the Company (or any of their officers, directors or controlling persons), and shall survive delivery of and payment for any Company Equity Securities.

ARTICLE VII

TERMINATION

7.1The Company shall have the right, by giving notice as hereinafter specified, to terminate this Agreement in its sole discretion at any time.  Any such termination shall be without liability of any party to any other party except that the provisions of Section 3.1(h), Article V and Article VI hereof shall remain in full force and effect notwithstanding such termination.

7.2The Sales Manager shall have the right, by giving notice as hereinafter specified, to terminate this Agreement in its sole discretion at any time.  Any such termination shall be without liability of any party to any other party except that the provisions of Article 3.1(h), Article V and Article VI hereof shall remain in full force and effect notwithstanding such termination. 

7.3This Agreement shall remain in full force and effect unless terminated pursuant to Section 7.1 or 7.2 above or otherwise by mutual agreement of the parties; provided that any such termination by mutual agreement shall in all cases be deemed to provide that Section 3.1(h), Article V and Article VI shall remain in full force and effect.

7.4Any termination of this Agreement shall be effective on the date specified in such notice of termination; provided that such termination shall not be effective until the close of business on the date of receipt of such notice by the Sales Manager or the Company, as the case may be.  If such termination shall occur during a period when sales of Company Equity Securities are being made pursuant to this Agreement, any sales of Company Equity Securities made prior to the termination of this Agreement shall settle in accordance with the provisions of this Agreement.

ARTICLE VIII

NOTICES

8.1All notices or communications hereunder shall be in writing and if sent to the Sales Manager shall be mailed, delivered or telecopied and confirmed to the Sales Manager at Brinson Patrick, a division of San Blas Securities LLC, 3340 Peachtree Road NE, Suite 1800, Atlanta, Georgia 30326, (email OR facsimile number (404) [FAX NUMBER]), Attention: Corporate Finance, or if sent to the Company, shall be mailed, delivered, emailed or telecopied and confirmed to the Company at Capstead Mortgage Corporation, 8401 N. Central Expressway, Suite 800, Dallas, Texas 75225, email preinsch@capstead.com, Attention: Mr. Phillip A. Reinsch.  Each 

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party to this Agreement may change such address for notices by sending to the parties to this Agreement written notice of a new address for such purpose.

ARTICLE IX

MISCELLANEOUS

9.1This Agreement shall inure to the benefit of and be binding upon the Company and the Sales Manager and their respective successors and the controlling persons, officers and directors referred to in Article V hereof, and no other person will have any right or obligation hereunder.

9.2This Agreement constitutes the entire agreement and supersedes all other prior and contemporaneous agreements and undertakings, both written and oral, between the parties hereto with regard to the subject matter hereof.

9.3THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO THE PRINCIPLES OF CONFLICTS OF LAWS.

9.4This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.  The parties agree that this Agreement will be considered signed when the signature of a party is delivered by facsimile transmission.  Such facsimile transmission shall be treated in all respects as having the same effect as an original signature.

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their respective authorized officers as of the date hereof.

CAPSTEAD MORTGAGE CORPORATION

 

 

 

By: /s/ Phillip A. Reinsch  

Name: Phillip A. Reinsch  10/25/2019

Title:  President and CEO  

 

 

SAN BLAS SECURITIES LLC (doing business as Brinson Patrick, a division of San Blas Securities LLC)

 

 

 

By: /s/ Daniel Padilla

Name: Daniel Padilla  10/23/19

Title:    CEO

 

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SCHEDULE 1.1(f)

List of Significant Subsidiaries

None.PURCHASE AND SALE AGREEMENT

    

    

    THIS PURCHASE AND SALE AGREEMENT (this “Agreement”) is made as of
        September 17, 2019 (the “Effective Date”) by and between AEI INCOME & GROWTH FUND XXI LIMITED PARTNERSHIP, a Minnesota limited partnership and AEI ACCREDITED INVESTOR FUND V LP, a Minnesota limited partnership (collectively “Seller”) and EXCHANGERIGHT REAL ESTATE, LLC (“Buyer”). Seller desires to sell, and Buyer desires to purchase, all of Seller’s right, title and interest in the real property and improvements thereupon located at 2860 E Cherokee Drive, Canton, GA 30115 as
      more particularly described on Exhibit “A” attached hereto (the “Property”).

    

    

    In consideration of the mutual covenants set forth herein and other good and valuable consideration, the receipt and sufficiency of which are
      hereby mutually acknowledged, the parties hereto covenant and agree as follows:

    

    

    1.   Property.  The property to be sold to Buyer in this transaction consists of an undivided 100%

    interest in the Property. Seller owns no interest in any personalty with respect to the Property.

    

    

    2.   Lease. The Property is being sold subject to an existing Lease of the Property dated January

    20, 2006, as amended by that certain First Amendment to Lease dated July 24, 2007, as amended by that certain Second Amendment to Lease dated September 21, 2009,
      and as further amended by that certain Third Amendment to Lease dated September 10, 2019 by and between Seller, as lessor (pursuant to that Assignment and Assumption of Lease dated September 21,

    2009 between Hickory Flat Holdings, LLC as assignor, and La Jolla Group A, LLC and La Jolla Group C, LLC as tenants in common, collectively assignee, whose
      interest was subsequently assigned pursuant to that certain Assignment and Assumption of Lease dated May 29, 2014 by and between La Jolla Group A, LLC, a Delaware limited liability company, successor by merger to La Jolla Group C, LLC, as assignor,
      and Seller, as assignee), and Tractor Supply Company, a Delaware corporation as lessee (the “Tenant”) (collectively, the “Lease”). The Seller agrees to sell and convey to Buyer, and Buyer agrees to purchase from Seller, all right, title, and
      interest of Seller in and to all leases and other agreements to occupy all or any portion of the Property that are in effect on the Effective Date or which Seller executed prior to Closing (as hereinafter defined) pursuant to the terms of this
      Agreement.

    

    

    3.   Purchase Price.  The Purchase Price for the Property is five
      million, six hundred thirty thousand, four hundred forty dollars ($5,630,440.00) (the “Purchase Price”). If all conditions
      precedent to Buyer’s obligations to purchase have been satisfied, Buyer shall deposit the Purchase Price with the Closing Agent (as defined below) on or before the Closing Date.

    

    

    4.   Terms.  The Purchase Price will be paid by Buyer as follows:

    

    

    a) Within three (3) business days of the Effective Date of this Agreement, Buyer will deposit ONE HUNDRED THOUSAND
      DOLLARS AND NO/100 ($100,000.00) (the “Earnest Money”) into an interest-bearing account with Chicago Title Insurance
      Company, 725 S. Figueroa Street, Suite #200, Los Angeles, CA 90017, Attn: Nko Justin,   Senior   Escrow   Officer;   phone   number:   (213)   488-4330;   email:

    
      Page 1 of 32 Tractor Supply - Canton, GA

      
        

    

    

    

    Nko.Justin@ctt.com (the “Closing Agent” or “Title Company”). Upon expiration of the Review Period (as defined below),
      Earnest Money shall become non-refundable. The Earnest Money shall be credited against the Purchase Price when and if escrow closes and the sale is completed.

    

    

    b) Buyer will deposit the balance of the Purchase Price into escrow in sufficient time to allow escrow to close on the Closing Date.

    

    

    5.   Closing Date. Escrow shall close (the “Closing”)
      on or before ten (10) days following the expiration of the Review Period set forth below, on a date selected by Buyer (the “Closing Date”), unless the parties mutually agree otherwise; provided, Buyer shall give Seller no less than two (2) business days’ prior written notice of
      Buyer’s selected date for the Closing.

    

    

    Notwithstanding anything to the contrary contained herein, Buyer may, on or before the Closing Date, at its sole discretion, extend the
      Closing Date by a period of up to twenty (20) days by providing written notice to Seller of its election to extend the Closing Date, in accordance with Section 22 of this Agreement, and depositing an additional ONE HUNDRED THOUSAND DOLLARS AND NO/100
      dollars ($100,000.00) of Earnest Money (the “Additional Earnest Money”) with the Closing Agent within three (3) business days of its election to extend the Closing Date. The Earnest Money and the
      Additional Earnest Money shall be non-refundable (unless Seller shall default hereunder, in the event of a failure of a condition precedent as to which this Agreement expressly provides for the return of the Earnest Money and Additional Earnest Money
      to Buyer, or in the event of a casualty or condemnation, subject to the provisions of Section 16 below) and credited against the Purchase Price when and if escrow closes and the sale is completed.

    

    

    Without in any way limiting the foregoing, Seller acknowledges that Buyer is targeting a

    Closing Date thirty (30) days from the Effective Date of this Agreement.

    

    

    6.   Due Diligence. Buyer will have until 5:00 p.m. Pacific Time on the date that is thirty
      (30) days from the Effective Date of this Agreement (the “Review Period”) to conduct all of its inspections and due
      diligence and satisfy itself regarding the Property and this transaction. Buyer agrees to indemnify and hold Seller harmless for any loss or damage to the Property or persons caused by Buyer or its agents arising out of such physical inspections of
      the Property, and this indemnity shall survive Closing or termination of this Agreement. Within three (3) business days of the Effective Date of this Agreement, Seller shall provide, to the extent such items are in its possession, the items listed on
      Exhibit “B” (“Seller’s Materials”). Within such three (3) business day period, Seller shall also provide contact information for Seller’s contact regarding the Property during the Review Period.

    

    

    Buyer may cancel this Agreement before the expiration of the Review Period for any reason or no reason at all in its sole discretion by
      delivering a cancellation notice to Seller and Closing Agent prior to the expiration of the Review Period. If this Agreement is not cancelled as set forth above, the Earnest Money shall be non-refundable unless Seller shall default hereunder, in the
      event of a failure of a condition precedent as to which the Agreement expressly provides

    
      Page 2 of 32 Tractor Supply - Canton, GA

      
        

    

    

    

    for the return of the Earnest Money to Buyer, or in the event of a casualty or condemnation, subject to the provisions of Section 16 below.

    

    

    If Buyer cancels this Agreement before the expiration of the Review Period, as permitted under this Section, except for any escrow cancellation fees charged by
      the Title Company and any liabilities under the first paragraph of this Section 6 and those provisions stating otherwise (which will survive), Seller (after execution of such documents reasonably requested by Seller to evidence the termination
      hereof) shall return to Buyer its Earnest Money and Buyer will have absolutely no rights, claims or interest of any type in connection with the Property or this transaction, regardless of any alleged conduct by Buyer, Seller or anyone else.

    

    

    7.   Escrow. Escrow shall be opened upon execution of this Agreement by both parties. A copy of this Agreement
      will be delivered to the Title Company and will serve as escrow instructions.

    

    

    8.   Title. Buyer, at its sole expense, within three (3) business days of
      the Effective Date, shall order an updated title insurance commitment, along with underlying documents to include any easement or declarations/CAM affecting the Property, for an Owner’s Title Insurance Policy (collectively, the “Title Commitment”). Closing will be conditioned on the agreement of the Title Company to issue an Owner’s Title Insurance
      Policy, dated as of the Closing Date, in an amount equal to the Purchase Price, insuring that Buyer will own insurable fee simple title to the Property subject only to: current real property taxes and assessments; survey exceptions; the rights of
      parties in possession pursuant to the Lease; and the Permitted Exceptions, as defined herein. Buyer shall, at its sole expense, order and obtain an updated survey of the Property. Buyer hereby acknowledges that if Buyer desires to remove the survey
      exception from the Title Commitment, it shall be Buyer’s responsibility to obtain such updated survey. Seller shall have no obligation to execute any “no change” or equivalent affidavit with respect to the existing survey of the real property, nor
      shall Seller have any obligation to make any representations or warranties regarding such survey or any measurements or depictions thereon.

    

    

    Buyer shall be allowed until the expiration of the Review Period for examination and the making of any title objections thereto (the “Title Objections”), said Title Objections to be made in writing or deemed waived (such written notice of Buyer’s Title Objections to be hereinafter referred to as the “Notice
          of Objections”). Except as set forth below, any title exception disclosed by the Title Commitment or Buyer’s survey and not listed in such Notice of Objections shall be deemed a “Permitted Title
          Exception” under this Agreement.

    

    

    If Seller shall fail to cure (or commence to cure) or eliminate all the Title Objections listed in the Notice of Defect within ten (10)
      business days after receipt of the Notice of Objections (the “Title Cure Period”), then Buyer may elect either to: (a) accept the Property subject to the title exception(s) not cured (in which case such
      title exception(s) shall become a Permitted Title Exception(s) hereunder), or (b) terminate this Agreement.

    

    

    In the event that Seller agrees to cure a Title Objection and commences such cure, but the same cannot be cured within the Title Cure Period,
      the Buyer may, by written notice to Seller, preserve such Title Objection such that the cure of such Title Objection shall be a condition

    
      Page 3 of 32 Tractor Supply - Canton, GA

      
        

    

    

    

    precedent to Buyer’s obligation to close. Buyer shall elect to either accept the Property subject to the Permitted Exceptions or terminate
      the Agreement by written notice to Seller delivered within three (3) business days following the end of the Title Cure Period, and the failure to deliver such election notice shall constitute an election to proceed under clause (a) above. Any
      mortgage, security deed, lien, lis pendens, judgment, or other claim in a liquidated amount incurred by Seller during Seller’s ownership of the Property and which constitutes an exception to the title to the Property shall not in any event be a
      Permitted Title Exception hereunder, but such claim shall be paid or satisfied out of the sums payable by Buyer at Closing, and the proceeds of sale payable to Seller shall be reduced accordingly; provided that such claim must have arisen directly
      from the acts or omissions of Seller, and not those of the Tenant.

    

    

    At any time after the Effective Date of this Agreement and prior to Closing, Buyer shall have the right to notify Seller of any additional title exception which
      first appears of record after the effective date of the Title Commitment, or otherwise becomes known to Buyer. Buyer shall be allowed five (5) business days after notice of such additional title exception for examination and the making of any new
      Title Objections thereto by written notice to Seller (“Notice of New Objections”). Except as set forth herein, any
      title exception disclosed to Buyer and not listed in such Notice of New Objections shall be deemed a Permitted Title Exception. If Seller shall fail to cure (or commence to cure) or eliminate all the new Title Objections listed in the Notice of New
      Objections within ten (10) business days after receipt of the Notice of New Objections (the “Second Title Cure Period”), then Buyer may elect either to: (a) accept the Property subject to the new title
      exception(s) not cured (in which case such new title exception(s) shall become a Permitted Title Exception(s) hereunder), or (b) terminate this Agreement.

    

    

    9.   Closing Costs. Seller shall pay all transfer taxes (state, county, and municipal, as applicable).

    Seller and Buyer acknowledge and agree that the only broker involved with this Agreement is JRW Realty, Inc. (“Broker”).
      Seller agrees to pay a 2% commission at Closing to Broker (based on the Purchase Price). If for any reason this sale does not close, Broker shall not be entitled to any commission or any portion of the Earnest Money.   Seller and Buyer each represent
      to the other that they have not dealt with any real estate broker in connection with this Agreement except the Broker. Seller and Buyer each agree to indemnify and hold each other harmless from and against the claims of any and all brokers or other
      intermediaries (other than the Broker, the commission for whom shall be Seller’s responsibility) claiming to have had any dealings, negotiations or consultations with the indemnifying party in connection with this Agreement or the sale of the
      Property.

    

    

    Buyer shall pay the premium for an ALTA extended coverage owner’s policy of title insurance (the “Owner’s Title Insurance
          Policy”) in the full amount of the Purchase Price, the full cost of any endorsements to the Owner’s Title Insurance Policy, and the full cost of any extended coverage as Buyer may require for such policy along with any title search and
      exam fees. Buyer will pay any and all recording fees. Buyer will pay the cost of its due diligence, including the cost of an updated survey to be ordered by Buyer as set forth in Section 8 above. Buyer and Seller will split all escrow and closing
      fees equally. Each party will pay its own attorney’s fees and costs to document and close this transaction.

    
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    10. Real Estate Taxes, Special Assessments and Prorations.  The
      responsibility for all real property taxes for the current tax period and all expenses (including but not limited to common area maintenance expenses and fees), if any, that are the responsibility of Seller, shall be prorated between Buyer and Seller
      as of the Closing Date. Seller will provide a credit to Buyer in the amount of any payments collected from Tenant for real estate taxes and any assessments for the year in which the Closing occurs which, as of the Closing Date, have not yet been
      applied to the payment of real estate taxes and any assessments. Seller shall be entitled to apply any amounts collected from Tenant to real estate taxes, and any assessments, that become due and payable prior to Closing, provided any excess or
      shortage of funds from Tenant to reimburse Seller shall be prorated between the parties at Closing.

    

    

    All income and all operating expenses from the Property, if any, shall be prorated between the parties and adjusted by them as of the Closing
      Date. If the Closing shall occur before the actual real estate taxes and special assessments payable during such year are known, the apportionment of such taxes and assessments shall be upon the basis of the most recent real estate tax assessment for
      the Property (including all improvements thereon); provided that, if the real estate taxes and assessments payable during the year in which Closing occurs are thereafter determined to be more or less than the real estate taxes and assessments payable
      during the preceding year, Seller and Buyer promptly shall adjust the proration of such taxes and assessments, and Seller or Buyer, as the case may be, shall pay to the other any amount required as a result of such adjustment and these mutual
      covenants shall not merge with the Deed delivered hereunder but shall survive the Closing. Municipal or other governmental assessments assessed or attributed to periods before the Closing Date shall be paid by Seller in full or deducted from the
      Purchase Price.  Seller shall be entitled to all income earned, and shall be responsible for all expenses incurred, prior to the Closing Date. Buyer shall be entitled to all income earned, and shall be responsible for all operating expenses of the
      Property incurred, on and after the Closing Date. The Seller agrees to forward all rents received by Seller after Closing to the Buyer within five (5) business days of receipt. Seller shall promptly deliver the Tenant Notice Letter to Tenant upon the
      Closing.   If after Closing, the parties discover an error in adjustments and apportionments or additional information becomes available which would render the closing prorations inaccurate, the same shall be corrected as soon after their discovery
      as possible.   The provision of this Section 10 shall survive the Closing except that no adjustment shall be made later than eighteen (18) months after Closing unless prior to such date the party seeking the adjustment shall have delivered a written
      notice to the other party specifying the nature and basis for such claim. In the event that such claim is valid, the party against whom the claim is sought shall have ten (10) days in which to remit any adjustment due.

    

    

    11. Seller’s Representations and Agreements and Covenants.

    

    

    a) Seller represents and warrants as of the Effective Date and shall recertify in writing as of the Closing Date that:

    

    

    i.   Seller is the owner of the Property (excluding any and all personal property located in or upon the Property, which is owned by the
      Tenant), subject to no liens or encumbrances, except for taxes for the year of Closing during the

    
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    ownership of the Property by Seller, the Lease, and all matters appearing of record, including, but not limited to, easements, covenants,
      encumbrances and restrictions. Seller owns a 100% fee simple real estate interest in the Property. The Property is not collateral subject to any loans or mortgages.

    

    

    ii.   No party is entitled to occupancy of any portion of the Property except for Tenant subject to Tenant’s rights under the Lease. The
      Lease is in full force and effect in accordance with its respective terms, has not been modified or amended except as disclosed to Buyer, and to Seller’s actual knowledge, no claim of default by either party thereto exists. The Lease provided to
      Buyer is a true, correct and complete copy of the Lease. All obligations of Seller under the Lease as of the Closing Date have been or will be fully performed. No brokerage, finders or referral fees or similar commissions are or will become due and
      payable in connection with the Lease or renewals thereof which will be binding upon Buyer and there are no (i) landlord contributions towards tenant improvements which have not been fully paid under the Lease; or (ii) tenant improvement work required
      to be completed by the Seller under the Lease which has not been fully completed. The total scheduled annual base rent for the current year of the Lease is Three Hundred Forty Five Thousand One Hundred Forty-Six and 17/100 Dollars ($345,146.17) per
      annum.

    

    

    iii. To Seller’s actual knowledge: (i) there are no pending or threatened requests, applications or proceedings to alter or restrict the
      zoning or other use restrictions or any taking, condemnation or eminent domain proceedings applicable to the Property; and (ii) there are no actions, suits, or proceedings pending or threatened against or relating to Seller or the Property.

    

    

    iv.   Except for this Agreement and the Lease, Seller is not a party to any contract, agreement or commitment to sell, convey, assign,
      transfer, provide rights of first refusal or other similar rights, or otherwise dispose of any portion or portions of the Property.

    

    

    v.   Seller is not a "foreign person" within the meaning of Section 1445(f)(3) of the

    Internal Revenue Code of 1986, as amended.

    

    

    vi.   Seller has not: (i) made a general assignment for the benefit of creditors; (ii) filed any voluntary petition in bankruptcy; (iii)
      received notice of the appointment of a receiver to take possession of all or substantially all of its assets; (iv) received notice of the attachment or other judicial seizure of all or substantially all of its 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.

    

    

    vii.   Seller has received no written notice from any governmental authority with jurisdiction over the Property alleging any current
      violation of any laws

    
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    applicable to the Property which remains uncured to the full satisfaction of the governmental authority issuing said notice.

    

    

    viii. To Seller's actual knowledge: (1) Seller has not generated, manufactured, stored or disposed of Hazardous Materials (other than de
      minimis amounts customarily and properly used in connection with the construction and maintenance of the Property) on or with respect to the Property in violation of applicable law and which are required by law to be remediated or removed; and (2)
      Seller has received no written notice from any federal, state, county or municipal authority alleging: (A) the existence of any Hazardous Materials at the Property; (B) the violation of any environmental laws with respect to the Property; or (C) any
      other environmental or Hazardous Materials issues applicable to the Property. As used herein, “Hazardous Materials" means any substance, chemical, waste or material that is or becomes regulated by any federal,
      state or local governmental authority because of its toxicity, infectiousness, radioactivity, explosiveness, ignitability, corrosiveness or reactivity, including, but without limitation, asbestos or asbestos containing material, toxic mold and
      fungus, the group of compounds known as polychlorinated biphenyls, flammable explosives, oil, petroleum or any refined petroleum product.

    

    

    ix.   Seller has no actual knowledge of and has received no notice concerning any existing or proposed special assessments or similar
      taxes, charges or assessments against the Property, or any utility service moratoriums or other moratoriums affecting the Property, which Tenant is not obligated to pay pursuant to the Lease.

    

    

    x.  Seller has not entered into any service, supply, maintenance or utility contracts affecting the Property which will be binding upon
      Buyer after the Closing.

    

    

    b) During the pendency of this Agreement: (i) Seller shall not market the Property for sale and shall not accept or negotiate any letter of
      intent or purchase agreement with respect to the Property (other than this Agreement); (ii) Seller shall operate, maintain, repair and replace the Property to the extent required of Seller, as lessor, by the Lease (but this covenant shall not impose
      upon Seller any responsibility, obligation, or liability for any failure of Tenant to perform Tenant’s obligations as set forth in the Lease); (iii) Seller shall not, without Buyer’s prior written consent, transfer any part of the Property or create
      on the Property any easements, liens, mortgages, encumbrances, or other interests or permitting any changes to the zoning classification of the Property; and (iv) Seller shall not enter into or amend any lease, contract, or other agreement regarding
      the Property without Buyer’s prior written consent in each instance (which may be granted or withheld in Buyer’s sole discretion).

    

    

    The foregoing representations and warranties shall be recertified on the Closing Date and shall survive the Closing for six (6) months. In the event Buyer
      discovers after the Closing that any of the foregoing representations and warranties were false or misleading in any material respect when made, then Buyer shall be permitted to pursue any and all rights and remedies available to Buyer at law or in
      equity, so long as such action is commenced prior to the expiration of the

    
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    survival period provided above. Seller agrees to indemnify, defend (with counsel reasonably acceptable to Buyer), protect and hold harmless
      Buyer, and its assigns and successors harmless from and against a breach of Seller’s representations and warranties. This indemnity shall survive the Closing for the survival period provided above. As used herein and elsewhere in this Agreement, the
      term “Seller’s knowledge” and words of similar effect shall mean the current actual knowledge 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 person any duty to investigate the matter to which such actual knowledge, or the absence thereof, pertains.    Buyer agrees
      that the individual(s) designated in this subparagraph (d) shall have no personal liability hereunder.

    

    

    12. Disclosures.

    

    

    a) As of the Effective Date hereof, Seller has not received any notice of any material, physical, or mechanical defects of the Property,
      including without limitation, the plumbing, heating, air conditioning, and ventilating, electrical system. To the best of Seller’s knowledge without inquiry, all such items are in good operating condition and repair and in compliance with all
      applicable governmental, zoning, and land use laws, ordinances, regulations and requirements. If Seller shall receive any notice to the contrary prior to the Closing Date, Seller will inform Buyer prior to the Closing Date, and Buyer may terminate
      this Agreement and the Earnest Money will be returned.

    

    

    b) As of the Effective Date hereof, Seller has not received any notice that the use and operation of the Property is not in full compliance
      with applicable building codes, safety, fire, zoning, and land use laws, and other applicable local, state and federal laws, ordinances, regulations and requirements. If Seller shall receive any such notice prior to the Closing Date, Seller will
      inform Buyer prior to the Closing Date, and Buyer may terminate this Agreement and the Earnest Money will be returned.

    

    

    c) Buyer agrees that it is purchasing the Property in its present condition, “as is, where is,” and Seller has no obligations to construct or
      repair any improvements thereon or to perform any other act regarding the Property, except as expressly provided herein.

    

    

    d) Buyer acknowledges that, having been given the opportunity to inspect the Property, Buyer is relying solely on its own investigation of
      the Property and not on any representations or information provided by Seller or to be provided by Seller, except as set forth herein. Buyer further acknowledges that the information provided, or to be provided, by Seller with respect to the Property
      was obtained from a variety of sources and Seller has not (a) made independent investigation or verification of such information, and (b) makes no representations as to the accuracy or completeness of such information, except as herein set forth. The
      sale of the Property as provided for herein is made on an “as-is, where-is” basis and Buyer expressly acknowledges that, in consideration of the agreements of Seller herein, except as otherwise specified herein, Seller makes no warranty or
      representation, express or implied, or arising by operation of law, including, but not limited to, any warranty of condition, habitability, suitability

    
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    for lease, suitability for commercial purposes, merchantability, or fitness for a particular purpose, in respect of the Property. Seller
      makes no representations of any sort that ownership of the Property will result in a profit to any Buyer.

    

    

    e) Buyer acknowledges that Seller cannot, and does not, make any representation as to (a) the success, or lack thereof, of the Property or
      continuation of the Lease post-Closing, or (b) the appropriateness of purchasing the Property for the Buyer’s individual tax or financial situation or tax or financial objectives. Buyer acknowledges that he or she is relying solely upon his or her
      own examination of the Property and all facts surrounding the purchase of the Property including the merits and risks involved therein.

    

    

    The Parties agree that the provisions of this Section 12, subsections (a) through (e), shall survive the Closing Date.

    

    

    13. (A)  Seller’s Obligations at Closing. Except as
      otherwise provided for below, Seller shall deliver at Closing (or cause to be delivered), the following documents, certificates and agreements relating to the Property (the “Closing Documents”), in form and
      substance satisfactory to Buyer.

    

    

    a) A Special Warranty Deed executed by Seller in the form of Exhibit G and incorporated herein; subject to any
      modifications required by the Title Company (the “Deed”), conveying the Property to Buyer subject to no exceptions other than current real property taxes and assessments, the Lease, and the Permitted
      Exceptions. The legal description for the Deed shall mirror the legal description in Buyer’s Pro Forma at Closing. Original resolutions of Seller authorizing the sale, if required by the Title Company to record the Deed, shall be attached to the
      Deed.

    

    

    b) An affidavit of Seller certifying that Seller is not a “foreign person,” as defined in the federal Foreign Investment
      in Real Property Tax Act of 1980, and the 1984 Tax Reform Act, as amended.

    

    

    c) A combined buyer/seller settlement statement and all other documents and instruments that the Title Company may reasonably require to
      properly consummate the transaction contemplated by this Agreement.

    

    

    d) An assignment and assumption of lease agreement, of all of Seller's interest in the Lease, including an indemnification of Buyer by
      Seller against liability arising under the Lease and accruing or arising prior to the Closing Date (“Lease Assignment”) in the form attached hereto as Exhibit D.

    

    

    e) A letter to Tenant advising Tenant of the Assignment of the Lease, and directing that notices and future rent payments be made to Buyer in
      the form attached hereto as Exhibit E.

    

    

    
      
        	

              	f)	
                An assignment (the “General Assignment”) of the Intangible Property, including, without limitation, all unexpired warranties and guarantees relating to the
                  improvements on the Property (to the extent the same are assignable and are not

              

      

    

    
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    assigned to Tenant pursuant to the terms of the Lease), and the roof warranty (to be transferred to Buyer by Buyer, at Buyer’s sole expense,
      with cooperation by Seller), in the form attached hereto as Exhibit F.

    

    

    g)  An original Estoppel Certificate from Tenant in the form required by the Lease, disclosing no defaults by either party (or any event or
      circumstance, that with the passage of time or with the delivery of notice could become a default under the Lease), deferred maintenance or discrepancies with respect to material terms of the Lease, certified to Buyer and/or Buyer’s assignee and
      Buyer’s lender (the “Buyer’s Certifications”), dated within thirty (30) days of the Closing Date, along with an
      executed copy delivered to Buyer no later than two (2) business days prior to Closing. Seller shall provide Buyer with proof of ordering the Estoppel Certificate (in the form of a copy of an email from Seller to Tenant) no later than two (2) business
      days after Seller orders the Estoppel Certificate. Buyer shall provide Seller with the Buyer’s Certifications for the Estoppel Certificate and Seller shall request the Estoppel Certificate no later than two (2) business days following receipt
      thereof.

    

    

    h) An original Subordination, Non-Disturbance and Attornment Agreement (“SNDA”),
      in the form required by the Lease, by and among Tenant, Buyer or Buyer’s assignee as landlord, and Buyer’s lender, and duly executed and notarized by Tenant, along with an executed copy delivered to Buyer no later than two (2) business days prior to
      Closing. Buyer shall provide Seller with the Buyer’s information for the SNDA and Seller shall request the SNDA no later than five (5) business days following receipt of said information. Seller shall provide Buyer with proof of ordering and payment
      of the SNDA, if required under the Lease, no later than two (2) business days after Seller orders the SNDA.

    

    

    
      
        	

              	i)	
                The original Lease and Guaranty (including all amendments and guaranties).  If originals of the Lease and Guaranty are not available, Seller shall deliver a complete and accurate copy of such documents.

              

      

    

    

    

    
      
        	

              	j)	
                Any State or County-specific documents required by the Title Company, including but not limited to those Seller documents and requirements listed on Schedule B, Part I of the Title Commitment.

              

      

    

    

    

    k) A current tenant ledger showing all rental payments to Landlord within the last 12 months.

    

    

    
      
        	

              	l)	
                Seller shall request a copy of Tenant’s insurance certificates naming Buyer and Buyer’s lender as additional insureds but in no event shall Seller be required to deliver such requested insurance certificate
                  prior to Closing.

              

      

    

    

    

    m) Seller  shall request an estoppel certificate from any party to any declaration  of covenants, conditions and restrictions, reciprocal
      easement agreement or other similar instrument affecting the Property (“CC&Rs”), which certificate shall confirm that the CC&Rs are in full force and effect and have not been modified (except as
      disclosed in such certificate) and, to the actual knowledge of the party giving the certificate, neither

    
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    the Seller nor the other party or parties thereto are in default under the CC&Rs and all amounts, if any, owing under the CC&Rs have been paid in full.

    

    

    (B) Buyer’s Obligation at Closing. At Closing, Buyer shall deliver to Title
      Company the following:

    

    

    (a)       The Purchase Price by wire transfer of immediately available funds. (b)      A counterpart of the Lease Assignment.

    (c)      A counterpart of the General Assignment.

    

    

    (d)      A counterpart of the Deed with original resolutions of Buyer authorizing the purchase.

    

    

    (e)      A combined buyer/seller closing statement, a disbursement statement, and all other documents and instruments that either Seller,
      Seller’s or Buyer’s attorney, or the Title Company may reasonably require to properly consummate the transaction contemplated by this Agreement.

    

    

    

    

    

    

    14. Conditions Precedent to Close. Buyer’s obligation to pay the Purchase Price, and to
      accept the conveyance of title to the Property by Seller, shall be subject to compliance by Seller with the following conditions precedent on and as of the date of Closing. In the event the conditions precedent are not satisfied as of the Closing
      Date, Buyer shall have the right to either extend the Agreement until such conditions precedent are satisfied for a maximum period of ten (10) business days, waive any or all conditions precedent, or terminate this Agreement by giving written
      notification of such cancellation to Seller and receive a return of the Earnest Money and all interest earned thereon, and this Agreement shall immediately become null and void for all purposes and neither party shall have any further rights or
      obligations hereunder (except for any provisions which expressly survive).

    

    

    (a)      Seller shall deliver to Buyer on or before the Closing the items set forth in Section

    13(A) above;

    

    

    (b)      Buyer shall deliver to Seller on or before the Closing the items set forth in Section

    13(B) above; provided however the balance of the Purchase Price is not required to be deposited until the items set forth in Section 13(A) above
      have been delivered to Escrow;

    

    

    (c)      Tenant shall be open and operating for business to the public in substantially all of the leased space (with
      standard operating hours no less than the operating days and hours at a majority of Tenant’s other locations); (ii) Tenant shall have obtained all required licensing and approvals to conduct its business at the Property; and (iii) Tenant shall be
      paying full and unabated rent under the Lease.

    
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    (d)      Buyer shall have received from the Title Company, an Owner’s Pro Forma Title Policy, subject to only real
      estate taxes that are not yet due and payable, the Lease, and the Permitted Exceptions.

    

    

    (e)      All representations and warranties set forth in Section 11 of this Agreement being true and correct in all respects as of
      the Closing;

    

    

    
      
        	

              	(f)	
                The Property shall be in compliance with all applicable zoning codes, as evidenced by the Property Zoning Report, to be ordered by Buyer, at Buyer’s sole option, cost and expense.

              

      

    

    

    

    15. Defaults. a) EXCEPT AS PROVIDED HEREIN, IF BUYER FAILS TO COMPLETE THE PURCHASE OF THE
      PROPERTY OR TO PERFORM ANY COVENANT OR AGREEMENT OF BUYER CONTAINED HEREIN, AND SUCH FAILURE CONTINUES FOLLOWING A FIVE (5) DAY WRITTEN NOTICE AND CURE PERIOD, THE EARNEST MONEY IN THE AMOUNT WHICH BUYER HAS OR WAS THEN TO HAVE DEPOSITED WITH THE
      TITLE COMPANY (WHETHER OR NOT ACTUALLY DEPOSITED BY BUYER) SHALL BE FORFEITED TO SELLER, AND SELLER’S SOLE AND EXCLUSIVE REMEDY SHALL BE TO RETAIN THE EARNEST MONEY AS LIQUIDATED DAMAGES.   BUYER AND SELLER EXPRESSLY AGREE THAT THE RETENTION OF THE
      EARNEST MONEY BY SELLER REPRESENTS A REASONABLE ESTIMATION OF THE DAMAGES IN THE EVENT OF BUYER’S DEFAULT, AND THAT ACTUAL DAMAGES MAY BE DIFFICULT TO ASCERTAIN AND THAT THIS PROVISION DOES NOT CONSTITUTE A PENALTY. IN THIS RESPECT, BUYER AND SELLER
      ACKNOWLEDGE THAT THESE DAMAGES HAVE BEEN SPECIFICALLY NEGOTIATED BETWEEN BUYER AND SELLER AND ARE, INTER ALIA, TO COMPENSATE SELLER FOR THE DAMAGES IT WILL SUFFER IN THE EVENT OF A DEFAULT BY BUYER. BUYER HEREBY WAIVES THE RIGHTS AND BENEFITS
      OF ANY LAW, RULE, REGULATION OR ORDER NOW OR HEREAFTER EXISTING THAT WOULD ALLOW BUYER TO CLAIM A REFUND OF THE EARNEST MONEY AS UNEARNED EARNEST MONEY, A PENALTY OR FOR ANY OTHER REASON.

    

    

    b) If Seller fails to perform any covenant or agreement of Seller contained herein, or if Buyer discovers  prior to  the Closing that  any
      Seller representation  or warranty herein  is  false or misleading in any material respect, Buyer may elect to either (i) to terminate this Agreement by delivery of written notice to Seller, in which event Buyer shall be entitled to the return of the
      Earnest Money and Seller shall pay Buyer’s actual out-of-pocket expenses not exceeding

    $20,000.00, and neither party shall have any further rights or obligations regarding this Agreement other than those obligations which expressly survive, or (ii)
      seek specific performance of Seller’s obligations hereunder. In the event of a breach by Seller that cannot be remedied prior to the Closing Date, and provided the Closing occurs, Buyer shall be permitted to pursue any and all rights and remedies
      available to Buyer at law or in equity.   Notwithstanding anything to the contrary set forth herein, Seller shall not be deemed to be in default hereunder unless such default continues following a five (5) day written notice to Seller and cure
      period.

    

    

    16. Buyer’s Representations and Warranties.

    
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    a) Buyer represents and warrants to Seller as follows:

    

    

    i. In addition to the acts and deeds recited herein and contemplated to be performed, executed, and delivered by Buyer, Buyer shall
      perform, execute and deliver or cause to be performed, executed, and delivered at the closing or after the Closing Date, any and all further acts, deeds and assurances as Seller or the Title Company may require and be reasonable in order to
      consummate the transactions contemplated herein.

    

    

    ii.   Buyer has all requisite power and authority to consummate the transaction contemplated by this Agreement and has by proper
      proceedings duly authorized the execution and delivery of this Agreement and the consummation of the transaction contemplated hereby.

    

    

    iii. To Buyer’s knowledge, neither the execution and delivery of this Agreement nor the consummation of the transaction contemplated
      hereby will violate or be in conflict with (a) any applicable provisions of law, (b) any order of any court or other agency of government having jurisdiction hereof, or (c) any agreement or instrument to which Buyer is a party or by which Buyer is
      bound.

    

    

    17. Damages, Destruction and Eminent Domain.

    

    

    a) If, prior to the Closing Date, the Property or any part thereof be destroyed or further damaged by fire, the elements, or any cause, due
      to events occurring subsequent to the date of this Agreement to the extent that the cost of repair exceeds $10,000.00, this Agreement shall become null and void, at Buyer’s option exercised, if at all, by written notice to Seller within ten (10) days
      after Buyer has received written notice from Seller of said destruction or damage. Seller, however, shall have the right to adjust or settle any insured loss until (i) all contingencies set forth in Paragraph 6 hereof have been satisfied, or waived;
      and (ii) any ten-day period provided for above in this Subparagraph 16a for Buyer to elect to terminate this Agreement has expired or Buyer has, by written notice to Seller, waived Buyer’s right to terminate this Agreement. If Buyer elects to proceed
      and to consummate the purchase despite said damage or destruction, there shall be no reduction in or abatement of the Purchase Price, and Seller shall pay all applicable deductibles for any Seller policies assign to Buyer the Seller’s right, title,
      and interest in and to all insurance proceeds (pro-rata in relation to the Property) resulting from said damage or destruction to the extent that the same are payable with respect to damage to the Property, subject to rights of any Tenant of the
      Property.

    

    

    b) If the cost of repair is less than $10,000.00, Seller shall credit Buyer for the cost of the repairs. Buyer shall then be obligated to
      otherwise perform hereunder.

    

    

    c) If, prior to the Closing Date, the Property, or any part thereof, is taken by eminent domain, this Agreement shall become null and void
      at Buyer’s option. If Buyer elects to proceed to consummate the purchase despite said taking, there shall be no reduction

    
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    in, or abatement of, the Purchase Price, and Seller shall assign to Buyer the Seller’s right, title, and interest in and to any award made,
      or to be made, in the condemnation proceeding pro-rata in relation to the Property, subject to rights of any Tenant of the Property.

    

    

    d) In the event that this Agreement is terminated by Buyer pursuant to this Agreement, the Earnest Money shall be immediately returned to Buyer
      after execution by Buyer of such documents reasonably requested by Seller to evidence the termination hereof.

    

    

    18. 1031 Exchange. Buyer hereby acknowledges that Seller desires and intends to structure
      this transaction as a tax-deferred exchange pursuant to Section 1031 of the Internal Revenue Code, as amended. Accordingly, Buyer agrees that Buyer shall, at no additional cost, obligation, or liability to Buyer, cooperate with and assist Buyer in
      perfecting such an exchange, provided that the consummation of the transaction contemplated hereby is not thereby delayed by fault of Buyer.

    

    

    Seller is selling the Property for purposes of a tax-deferred exchange, and Seller acknowledges that Buyer has made no representations,
      warranties, or agreements to Seller or Seller’s agents that the transaction contemplated by this Agreement will qualify for such tax treatment, nor has there been any reliance thereon by Seller respecting the legal or tax implications of the
      transaction contemplated hereby. Seller further represents that it has sought and obtained such third-party advice and counsel as it deems necessary regarding the tax implications of this transaction.

    

    

    If Seller wishes to novate/assign the ownership rights and interest of this Purchase Agreement to a third party who will act as accommodator to perfect the 1031
      exchange by preparing an agreement of exchange of real property, the accommodator will be an independent third party to be chosen by Seller in Seller’s sole discretion, purchasing the Seller’s interest in the Property from Seller and selling such
      ownership interest in the Property to Buyer under the same terms and conditions as documented in this Agreement.

    

    

    If Buyer is purchasing the Property in relation to a tax-deferred exchange, Buyer acknowledges that Seller has made no representations, warranties, or
      agreements to Buyer or Buyer’s agents that the transaction contemplated by this Agreement will qualify for such tax treatment, nor has there been any reliance thereon by Buyer respecting the legal or tax implications of the transaction contemplated
      hereby. Buyer further represents that it has sought and obtained such third-party advice and counsel as it deems necessary regarding the tax implications of this transaction.

    

    

    19. Cancellation. If any party elects to cancel this Agreement because of any breach by
      another party or because escrow fails to close by the agreed date, the party electing to cancel shall deliver to escrow agent a notice containing the address of the party in breach and stating that this Agreement shall be cancelled unless the breach
      is cured within five (5) days following the delivery of the notice to the breaching party. Within five (5) days after receipt of such notice, the escrow agent shall send it by United States Mail to the party in breach at the address contained in the
      Notice and no further notice shall be required. If the breach is not cured within

    
      Page 14 of 32 Tractor Supply - Canton, GA

      
        

    

    

    

    five (5) days following the delivery of the notice to the breaching party, this Agreement shall be cancelled.

    

    

    20. Counterparts. This Agreement may be executed in a number of identical counterparts, each of
      which for all purposes is deemed an original, and all of which constitute collectively one (1) agreement; but in making proof of this Agreement, it shall not be necessary to produce or account for more than one such counterpart. Electronic copies of
      this Agreement may be deemed to be originals. Facsimile and electronic counterparts of this Agreement shall be binding.

    

    

    21. Choice of Law. This Agreement shall be governed by, and construed in
      accordance with the laws of the state in which the Property is located.

    

    

    22. Notices. All notices from either of the parties hereto to the other shall be in writing
      and shall be considered to have been duly given or served if sent by first class certified mail, or by a nationally recognized courier service guaranteeing overnight delivery to the party at his or its address set forth below, or by email to the
      respective email address set forth below, or to such other address as such party may hereafter designate by written notice to the other party. Refusal, rejection, or return of any notice otherwise properly delivered as set forth herein shall be
      deemed to constitute delivery of such notice. Notice given in accordance herewith shall be deemed effectively given upon delivery to the address of the addressee.

    

      	
                        If to Seller:

            	
              AEI Income & Growth Fund XXI Limited Partnership

            
	 	AEI Accredited Investor Fund V LP
	 	
              1300 Wells Fargo Place

            
	 	
              30 East Seventh Street

            
	 	
              St. Paul, MN 55101

            
	 	
              Attn: Kyle Hagen

            
	 	
              Email: khagen@aeifunds.com

            

      
        

        

        	
                          With a copy to:

              	
                AEI Income & Growth Fund XXI Limited Partnership

              
	 	 AEI Accredited Investor Fund V LP
	 	
                1300 Wells Fargo Place

              
	 	
                30 East Seventh Street

              

      

    

    	

          	
            St. Paul, MN 55101

          
	 	
            Attn: Matthew Swartzer

          
	 	
            Email: mswartzer@aeifunds.com

          

    

    

    
      	
                       If to Buyer:

            	
              ExchangeRight Real Estate, LLC

            
	 	
              Attn: David Fisher

            
	 	
              1055 East Colorado Blvd., Suite 310

            
	 	
              Pasadena, CA 91106

            
	 	
              Email:  david@exchangeright.com

            
	 	 

      

      

    

    

    

    

    

    

    

    

    

    
      Page 15 of 32 Tractor Supply - Canton, GA

      
        

    

    

    

    
      	
                      With a copy to: 

              

            	
              ExchangeRight Real Estate, LLC

            
	 	
              Attn:  Rahsaana Allen, Esq.

            
	 	
              1055 East Colorado Blvd., Suite 310

            
	 	
              Pasadena, CA 91106

            
	 	
              Email:  legal@exchangeright.com

            
	 	 

      

      

    

    

    

    

    

    23. Miscellaneous.

    

    

    a) This Agreement may be amended only by written agreement signed by both Seller and Buyer, and all waivers must be in writing and signed by
      the waiving party. Time is of the essence. This Agreement will not be construed for or against a party whether or not that party has drafted this Agreement. If there is any action or proceeding between the parties relating to this Agreement the
      prevailing party will be entitled to recover attorney’s fees and costs. This is an integrated agreement containing all agreements of the parties about the Property and the other matters described and it supersedes any other agreements or
      understandings. Exhibits attached to this Agreement are incorporated into this Agreement.

    

    

    b) Funds to be deposited or paid by Buyer must be good and clear funds in the form of cash, cashier’s checks or wire transfers, subject to the
      Title Company’s requirements.

    

    

    c) Buyer shall have the right to assign this Contract at Closing to any entity or entities affiliated with or related to Buyer without the
      consent of Seller (provided that Buyer shall notify Seller at least five (5) days prior to Closing to allow the parties to modify the Closing documentation accordingly). Other than the foregoing, Buyer shall not be entitled to assign any of its
      right, title, and interest herein without Seller’s prior consent. Any assignee shall expressly assume all of Buyer’s duties, obligations, and liabilities hereunder, and Buyer shall not be released from any of its obligations hereunder.

    

    

    d) Whenever the last day for the exercise of any right or the discharge of any obligation under this Contract shall fall upon a Saturday,
      Sunday, or any public or legal holiday, the party having such right or obligation shall have until 5:00 p.m. (Pacific Time) on the next succeeding regular business day to exercise such right or discharge such obligation.  Time is of the essence of
      this Contract.

    

    

    24. Escrow Agent. The parties hereto covenant and agree that in
      performing any of its duties under this Agreement, Escrow Agent shall not be liable for any loss, costs or damage which it may incur in the capacity of Escrow Agent, except for any loss, costs or damage arising out if its default or negligence.

    

    

    Buyer and Seller shall indemnify the Escrow Agent and hold the Escrow Agent harmless from all damage, costs, claims and expenses arising from
      performance of its duties as Escrow Agent including reasonable attorney’s fees, except  for those damages,  costs, claims  and expenses resulting from the negligence or willful misconduct of the Escrow Agent.

    
      Page 16 of 32 Tractor Supply - Canton, GA

      
        

    

    

    

    Accordingly, Escrow Agent shall not incur any liability with respect to (i) any action taken or omitted to be taken in
      good faith upon advice of counsel given with respect to any questions relating to duties and responsibilities, or (ii) to any action taken or omitted to be taken in reliance upon any documents, including any written notice of instruction provided for
      in this Agreement, not only as to its execution and the validity and effectiveness of its provisions, but also to the truth and accuracy of any information contained therein, which Escrow Agent shall in good faith believe to be genuine, to be signed
      or presented by a proper person or persons and to conform with the provisions of this Agreement. The Seller and/or Buyer are aware the Federal Deposit Insurance Corporation (FDIC) coverage’s applied to a maximum amount of $250,000.00 per depositor
      (as may be modified by the FDIC from time to time). Further, the Seller and/or Buyer do not and will not hold Escrow Agent liable for any loss occurring which arises from bank failure or error, insolvency or suspension, or a situation or event which
      falls under the FDIC coverage’s. In the event any party to the transaction underlying this Agreement shall tender any performance after the time when such performance was due, Escrow Agent may proceed under this Agreement unless one of the parties to
      this Agreement shall give to the Escrow Agent written direction to stop further performance of the Escrow Agent’s functions hereunder. In the event written notice of default or dispute is given to the Escrow Agent by any party, or if Escrow Agent
      receives contrary written instructions from any party, then Escrow Agent will promptly notify all other parties of such notice. Thereafter, Escrow Agent will decline to disburse funds or to deliver any instrument or otherwise continue to perform its
      escrow functions, except upon receipt of a mutual written agreement of the parties or upon an appropriate order of court. In the event of a dispute, the Escrow Agent is authorized to deposit the escrow into a court of competent jurisdiction for a
      determination as to the proper disposition of said funds. In the event that the funds are deposited in court, the Escrow Agent shall be entitled to file a claim in the proceeding for its costs and counsel fees, if any.

    

    

    

    

    

    

    [SIGNATURES PAGES FOLLOW]

    
      Page 17 of 32 Tractor Supply - Canton, GA

      
        

    

    

    

    IN WITNESS WHEREOF, the Seller and Buyer have executed this Agreement to be effective as of the Effective Date.

    

    

    SELLER:

    

    

    AEI Income & Growth Fund XXI Limited Partnership

    a Minnesota Limited Partnership

    

    

    

    

    By: AEI Fund Management XXI, Inc. 

    a Minnesota corporation

    

    

    Its: Corporate General Partner

    

    

    

    

    By: /s/ ROBERT P JOHNONS

    

    

    Date:       9-17-19

    

    

    Title: Robert P. Johnson, President

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    AEI Accredited Investor Fund V LP

    a Minnesota Limited Partnership

    

    

    By: AEI Income Fund Manager, Inc. 

    a Minnesota corporation

    

    

    Its: Corporate General Partner

    

    

    

    

    By: /s/ ROBERT P JOHNSON

    Date:       9-17-19

    

    

    Title: Robert P. Johnson, President

    
      Page 18 of 32 Tractor Supply - Canton, GA

      
        

    

    

    

    BUYER:

    

    

    EXCHANGERIGHT REAL ESTATE, LLC,

    a California limited liability company

    

    

    

    

    

    

    By:  /s/ DAVID FISHER

    Name: David Fisher

    Title: Manager

    
      Page 19 of 32 Tractor Supply - Canton, GA

      
        

    

    

    

    EXHIBIT A

    

    

    (Legal Description)

    Tract 9-A of Hickory Flat Crossing as shown on the subdivision plat of Tract 9, Hickory Flat

       

    Crossing, recorded in Plat Book 104, Page 70, Office of the Clerk of Superior Court of Cherokee

      

    Countym, Georgia.

      

     

      

    For prior title reference, see Deed recorded in Deek Book 10798, Page 491, of the Clerk of 

      

    Superior Court of Cherokee County, Georgia.

    

    

    

    

    

    

    

    

    

    
      Page 20 of 32 Tractor Supply - Canton, GA

      
        

    

    

    

    EXHIBIT B

    

    

    The following Seller’s Materials will be provided by Seller, to the extent such items exist in

    Seller’s possession:

    

    

    a) A complete copy of the Lease, and any amendments thereto;

    

    

    b) A copy of Store Sales (if applicable);

    

    

    c) Engineering and environmental studies;

    

    

    d) Most recent Survey, including any applicable easements;

    

    

    e) A copy of Seller’s existing Owner’s Title Policy for the Property, with copies of its underlying documents;

    

    

    f)  Any other additional and available due diligence items

    
      Page 21 of 32 Tractor Supply - Canton, GA

      
        

    

    

    

    EXHIBIT C

     (Reserved)

    
      Page 22 of 32 Tractor Supply - Canton, GA

      
        

    

    
      

      

      

      

      EXHIBIT D

      

      

      ASSIGNMENT AND ASSUMPTION OF LEASE

      

      

      TO BE IN RECORDABLE FORM IN A MEMORANDUM OF LEASE IS RECORDED AGAINST THE PROPERTY

      

      

      This  Assignment  and  Assumption  of  Lease  (the  “Assignment”),  dated  as  of

                                                            ,  201    ,  (the  “Effective  Date”),  is  by  and  between

                                                                                (“Assignor”),                                                     and

                                                                         (“Assignee”).

      

      

      WHEREAS, Assignor is presently the holder of the lessor’s interest under that certain

    

    

    

    Lease      dated

    ,      as      amended      and/or      assigned      with

    
      

      

                                                  , as Tenant (the “Lease”).   The Lease affects the real property

    

    

    

    commonly known as

    and legally described on Exhibit A attached hereto.

    
      

      

      

      

      NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Assignor and Assignee agree
        as follows:

      

      

      1.         Assignment. As of the Effective Date, Assignor hereby assigns, conveys, transfers and sets over unto
        Assignee all of Assignor’s right, title and interest in, to and under the Lease, including, without limitation, the Guaranty, if any, and all of Assignor’s right, title and interest in and to security, cleaning or other deposits and in and to any
        claims for rent, arrears rent or any other claims arising under the Lease against any lessee thereunder, subject to the rights of the lessees under the Lease.

      

      

      2.         Assumption. Assignee hereby assumes and agrees to pay all sums, and perform, fulfill and comply with all covenants and
        obligations, which are to be paid, performed, fulfilled and complied with by the lessor under the Lease, from and after the Effective Date.

      

      

      3.         Assignee’s Indemnification of Assignor.    Assignee shall and does hereby indemnify Assignor against,
        and agrees to hold Assignor harmless of and from, all liabilities, obligations, actions, suits, proceedings or claims, and all losses, costs and expenses, including but not limited to reasonable attorneys’ fees, arising as a result of any act,
        omission or obligation of Assignee arising or accruing with respect to the Lease and occurring or alleged to have occurred from and after the Effective Date.

      

      

      4.         Assignor’s Indemnification of Assignee. Assignor shall and does hereby indemnify Assignee against, and agrees to hold
        Assignee harmless of and from, all liabilities, obligations, actions, suits, proceedings or claims, and all losses, costs and expenses, including but not limited to reasonable attorneys’ fees, arising as a result of any act, omission or obligation
        of Assignor arising or accruing with respect to the Lease and occurring or alleged to have occurred prior to the Effective Date.

    

    
      Page 23 of 32 Tractor Supply - Canton, GA

      
        

    

    

    

    5.         Binding Effect. This Assignment shall inure to the benefit of and shall be binding upon the parties hereto and their
      respective successors and assigns.

    

    

    6.         Counterparts.  The parties agree that this Assignment may be executed by the parties in one or more
      counterparts and each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

    

    

    [REMAINDER OF PAGE IS INTENTIONALLY LEFT BLANK;SIGNATURE PAGE FOLLOWS]

    IN WITNESS WHEREOF, Assignor and Assignee have executed this Assignment as of the date set forth above.

    

    

    ASSIGNOR:

    

    

    AEI Income & Growth Fund XXI Limited Partnership a Minnesota Limited Partnership

    

    

    By: AEI Fund Management XXI, Inc. a Minnesota corporation

    

    

    Its: Corporate General Partner

    

    

    

    

    

    

    By: _

    

    

    Date:

    

    

    Title: Robert P. Johnson, President  

    

    

    

    

    

    

    AEI Accredited Investor Fund V LP

    a Minnesota Limited Partnership

    

    

    By: AEI Income Fund Manager, Inc. a Minnesota corporation

    

    

    Its: Corporate General Partner

    

    

    

    

    

    

    By: _

    

    

    Date:

    

    

    Title: Robert P. Johnson, President  

    
      Page 24 of 32 Tractor Supply - Canton, GA

      
        

    

    

    

    

    

    ASSIGNEE:

    

    

    

    

    

    

    

    

    By:     ExchangeRight Real Estate, LLC, 

    a California limited liability company,

    its sole member

    

    

    By:       

    Name:

    Title:  Manager

    
      Page 25 of 32 Tractor Supply - Canton, GA

      
        

    

    

    

    Exhibit A

    

    

    Legal Description

     

      

    
      

      

       

    
      Tract 9-A of Hickory Flat Crossing as shown on the subdivision plat of Tract 9, Hickory Flat

         

      Crossing, recorded in Plat Book 104, Page 70, Office of the Clerk of Superior Court of Cherokee

        

      Countym, Georgia.

        

       

        

      For prior title reference, see Deed recorded in Deek Book 10798, Page 491, of the Clerk of 

        

      Superior Court of Cherokee County, Georgia.

    

    

    

    
      Page 26 of 32 Tractor Supply - Canton, GA

      
        

    

    
    
      

      

      EXHIBIT E

    

    

    

    

    

    

    

                , 201 

    TENANT NOTICE LETTER

    
      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      Re:     Notice of Change of Ownership

      [Insert Address of Property]

      

      

      To Whom It May Concern:

    

    

    This  is  to inform you  that  on   ,  201 [INSERT  SELLER]

    
      

      

      (“Former Landlord”) has transferred, sold, assigned and conveyed all of Former Landlord’s interest in and to the
        property commonly known as                                                                      ,

    

    

    (the     “Property”)      

    (“New

    
      

      

      Landlord”). Accordingly, all future payments owed, and notices to be given, to the landlord with
        respect to your leased premises at the Property should be delivered to New Landlord at the following address:

      

      

      [INSERT NAME OF NEW LANDLORD]

      c/o ExchangeRight Real Estate, LLC

      1055 East Colorado Blvd., Suite 310

      Pasadena, CA 91106

      

      

      Telephone No:  (855) 317-4448

      Fax No:  (877) 711-4047

      Email Address:  properties@exchangeright.com

      Tax ID No:

      

      

      Please change the name of the Landlord’s interest under any policies of insurance (required by

    

    

    

    the lease) to

    , and their successors and assigns, and

    
      

      

      deliver an updated certificate of insurance to New Landlord.

      

      

      If you have any questions, please call or email the new landlord at the above-referenced telephone number and/or email address.

      

      

      Very truly yours,

    

    
      Page 27 of 32 Tractor Supply - Canton, GA

      
        

    

    
    

    

    FORMER LANDLORD:

    

    

    AEI Income & Growth Fund XXI Limited Partnership

    a Minnesota Limited Partnership

    

    

    By: AEI Fund Management XXI, Inc. a Minnesota corporation

    

    

    Its: Corporate General Partner

    

    

    

    

    

    

    By: _

    

    

    Date:

    

    

    Title: Robert P. Johnson, President

    

    

    

    

    

    

    AEI Accredited Investor Fund V LP

    a Minnesota Limited Partnership

    

    

    By: AEI Income Fund Manager, Inc. a Minnesota corporation

    

    

    Its: Corporate General Partner

    

    

    

    

    

    

    By: _

    

    

    Date:

    

    

    Title: Robert P. Johnson, President

    
      Page 28 of 32 Tractor Supply - Canton, GA

      
        

    

    
    
      

      

      EXHIBIT F

      

      

      ASSIGNMENT AGREEMENT

      

      

      

      

      

      

      This Assignment Agreement (the “Agreement”) dated as of                                                  ,

      201    , (the “Effective Date”), is by and between

    

    

    

    (“Assignor”), and

    (“Assignee”).

    
      

      

      

      

      WHEREAS, Assignor, as Seller, and ExchangeRight Real Estate,  LLC, a California limited liability company, as Buyer ("Original
          Buyer"), have entered into that certain Purchase Agreement dated as of                                                             , as amended, (the “Purchase

    

    Agreement”), relating to the property commonly known as

    (“Property”),

    
      

      

      which Purchase Agreement provides for, among other things, the transfer and sale by Assignor to

      Original Buyer of certain intangible property rights; and

      

      

      WHEREAS, Original Buyer assigned its right, title and interest in and to the Purchase

      Agreement to Assignee, pursuant to that certain Assignment of Purchase Agreement dated as of

                                    , 201    ; and

      

      

      WHEREAS, Assignor desires to assign to Assignee all of Assignor’s right, title and interest in and to all intangible property owned by Seller
        and used in the operation and management of the Property including without limitation: (i) the warranties relating to the construction of the Property; and (ii) all plans, specifications, architectural and engineering studies, reports, drawings and
        prints relating to the Property and owned by the Assignor (collectively, the “Intangible Property”); and

      

      

      NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Assignor and Assignee agree
        as follows:

      

      

      1.         Assignment. Assignor does hereby convey and assign to Assignee, its successors and assigns, all of
        Assignor’s right, title and interest in and to the Intangible Property.

      

      

      2.         Acceptance. Assignee hereby accepts the foregoing assignment and assumes all of Assignor’s obligations under the
        Intangible Property that arise out of or are related to any event, fact or circumstance occurring or existing on or following the Effective Date.

      

      

      3.         Binding Agreement. The terms and conditions of this Agreement shall be binding upon and inure to the benefit of Assignor
        and Assignee and their respective successors and assigns.

      

      

      4.         Interpretation. If there is any conflict as to the terms of this Agreement and the

      Purchase Agreement, the terms of the Purchase Agreement shall prevail.

      

      

      5.         Governing Law. This Assignment Agreement shall be governed by and construed in accordance with the laws of the state where
        the Property is located.

      

      

      6.         Headings. The headings of this Agreement are for reference only and shall not limit or define the meaning of any provision of this Agreement.

    

    
      Page 29 of 32 Tractor Supply - Canton, GA

      
        

    

    
    

    

    7.         Capitalized Terms. Capitalized terms used herein and otherwise not defined shall have the meaning given in the Purchase
      Agreement

    

    

    7.         Counterparts. The parties agree that this Agreement may be executed by the parties in one or more
      counterparts and each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

    

    

    [REMAINDER OF PAGE IS INTENTIONALLY LEFT BLANK; SIGNATURE PAGE FOLLOWS]

    
      Page 30 of 32 Tractor Supply - Canton, GA

      
        

    

    
    

    

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

    

    

    

    

    

    

    ASSIGNOR:

    

    

    AEI Income & Growth Fund XXI Limited Partnership a Minnesota Limited Partnership

    

    

    By: AEI Fund Management XXI, Inc. a Minnesota corporation

    

    

    Its: Corporate General Partner

    

    

    

    

    

    

    By: _

    

    

    Date:

    

    

    Title: Robert P. Johnson, President  

    

    

    

    

    

    

    AEI Accredited Investor Fund V LP

    a Minnesota Limited Partnership

    

    

    By: AEI Income Fund Manager, Inc. a Minnesota corporation

    

    

    Its: Corporate General Partner

    

    

    

    

    

    

    By: _

    

    

    Date:

    

    

    Title: Robert P. Johnson, President  

    

    

    ASSIGNEE:

    

    

    

    

    

    

    By:     EXCHANGERIGHT REAL ESTATE, LLC, a California limited liability company

    its sole member

    

    

    By:      
        Name:

    Title:  Manager

    
      Page 31 of 32 Tractor Supply - Canton, GA

      
        

    

    

    

    EXHIBIT G

    (Form of Deed)

    

    

    

    

    

    

    [SEE ATTACHED SPECIAL WARRANTY DEED]

     

    

     

    

  

  Page 32 of 32 Tractor Supply - Canton, GA

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