Document:

exv10w1

Exhibit 10.1

STOCK PURCHASE AGREEMENT

by and between

GRUBB & ELLIS COMPANY

as Seller,

and

IUC-SOV, LLC

as Purchaser

Dated as of August 10, 2011

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	ARTICLE I. DEFINITIONS
	 	 	1	 
	 
	 	 	 	 
	Section 1.1 Certain Defined Terms
	 	 	1	 
	Section 1.2 Other Interpretive Provisions
	 	 	12	 
	 
	 	 	 	 
	ARTICLE II. PURCHASE AND SALE
	 	 	12	 
	 
	 	 	 	 
	Section 2.1 Purchase and Sale of the Shares
	 	 	12	 
	Section 2.2 Stock Purchase Price
	 	 	12	 
	Section 2.3 Post Closing Adjustment of Estimated Closing Cash Payment
	 	 	12	 
	Section 2.4 Agreed Net Balance; Payments in Satisfaction of Net Balance
	 	 	14	 
	Section 2.5 Closing
	 	 	14	 
	Section 2.6 Closing Deliveries of Seller
	 	 	14	 
	Section 2.7 Closing Deliveries of Purchaser
	 	 	15	 
	Section 2.8 Timing of Closing
	 	 	16	 
	Section 2.9 Principal Amount of Seller Term Note
	 	 	16	 
	Section 2.10 Withholding
	 	 	16	 
	 
	 	 	 	 
	ARTICLE III. REPRESENTATIONS AND WARRANTIES OF SELLER WITH RESPECT TO SELLER
	 	 	17	 
	 
	 	 	 	 
	Section 3.1 Organization and Authority
	 	 	17	 
	Section 3.2 No Conflict; Governmental Authorization
	 	 	17	 
	Section 3.3 Ownership of Shares
	 	 	17	 
	Section 3.4 Litigation
	 	 	18	 
	Section 3.5 Broker’s Fees
	 	 	18	 
	 
	 	 	 	 
	ARTICLE IV. REPRESENTATIONS AND WARRANTIES OF SELLER WITH RESPECT TO THE ACQUIRED COMPANIES
	 	 	18	 
	 
	 	 	 	 
	Section 4.1 Organization and Qualification
	 	 	18	 
	Section 4.2 Capitalization
	 	 	18	 
	Section 4.3 Subsidiaries
	 	 	19	 
	Section 4.4 No Conflict; Governmental Authorization
	 	 	19	 
	Section 4.5 Unaudited Financial Statements
	 	 	20	 
	Section 4.6 Absence of Changes
	 	 	20	 
	Section 4.7 Accounts Receivable
	 	 	21	 
	Section 4.8 Accounts Payable
	 	 	22	 
	Section 4.9 Litigation
	 	 	22	 
	Section 4.10 Compliance with Laws
	 	 	22	 
	Section 4.11 Permits
	 	 	22	 
	Section 4.12 Environmental Matters
	 	 	22	 
	Section 4.13 Material Contracts
	 	 	23	 
	Section 4.14 Sufficiency of Assets
	 	 	24	 
	Section 4.15 Insurance
	 	 	24	 
	Section 4.16 Intellectual Property
	 	 	24	 

 

i

 

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	Section 4.17 Real Property
	 	 	25	 
	Section 4.18 Employee Matters and Benefit Plans
	 	 	26	 
	Section 4.19 Taxes
	 	 	28	 
	Section 4.20 Brokers
	 	 	29	 
	Section 4.21 Intercompany Payments
	 	 	30	 
	Section 4.22 Limitation on Warranties
	 	 	30	 
	 
	 	 	 	 
	ARTICLE V. REPRESENTATIONS AND WARRANTIES OF PURCHASER
	 	 	31	 
	 
	 	 	 	 
	Section 5.1 Organization and Authority
	 	 	31	 
	Section 5.2 No Conflict; Governmental Authorization
	 	 	31	 
	Section 5.3 Private Placement
	 	 	32	 
	Section 5.4 Investigation
	 	 	32	 
	Section 5.5 Financing
	 	 	32	 
	Section 5.6 Litigation
	 	 	32	 
	Section 5.7 Brokers
	 	 	33	 
	 
	 	 	 	 
	ARTICLE VI. ADDITIONAL AGREEMENTS
	 	 	33	 
	 
	 	 	 	 
	Section 6.1 Conveyance Taxes
	 	 	33	 
	Section 6.2 Further Action
	 	 	33	 
	Section 6.3 Wrong Pocket Assets
	 	 	33	 
	Section 6.4 Use of Seller’s Name
	 	 	34	 
	Section 6.5 Non-Compete
	 	 	34	 
	Section 6.6 Non-Solicitation
	 	 	35	 
	Section 6.7 Cooperation; Records and Documents
	 	 	35	 
	Section 6.8 Guaranteed Obligations
	 	 	36	 
	Section 6.9 Directors’ and Officers’ Indemnification
	 	 	37	 
	Section 6.10 Payment of Broker’s Fees
	 	 	37	 
	Section 6.11 Employee and Employee Benefit Matters
	 	 	37	 
	Section 6.12 Restrictions on Exercise of Rights as a Holder of Notes
	 	 	39	 
	Section 6.13 Restricted Payments to Purchaser
	 	 	40	 
	Section 6.14 Alesco Earn Out Payment
	 	 	40	 
	Section 6.15 Met 10 Litigation
	 	 	40	 
	Section 6.16 Efforts to Bifurcate the HQ Lease
	 	 	41	 
	Section 6.17 Efforts to Release Utility Bond Guarantees
	 	 	41	 
	Section 6.18 Broker Cooperation
	 	 	41	 
	 
	 	 	 	 
	ARTICLE VII. TAX MATTERS
	 	 	42	 
	 
	 	 	 	 
	Section 7.1 Tax Coordination
	 	 	42	 
	Section 7.2 Tax Return Filing and Payment of Taxes
	 	 	44	 
	Section 7.3 Tax Contests; Audit Responsibilities
	 	 	44	 
	Section 7.4 Cooperation
	 	 	45	 
	Section 7.5 Tax Sharing Agreement
	 	 	45	 

 

ii

 

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	ARTICLE VIII. INDEMNIFICATION
	 	 	45	 
	 
	 	 	 	 
	Section 8.1 Survival of Representations and Warranties
	 	 	45	 
	Section 8.2 Indemnification
	 	 	46	 
	Section 8.3 Calculation of Losses
	 	 	48	 
	Section 8.4 Proceedings Involving Third Parties
	 	 	48	 
	Section 8.5 Claims for Indemnification
	 	 	50	 
	Section 8.6 Treatment of Indemnification Claims
	 	 	50	 
	Section 8.7 Threshold for Indemnification Claims
	 	 	50	 
	Section 8.8 Limitation on Indemnification
	 	 	50	 
	Section 8.9 Exclusive Remedy
	 	 	51	 
	Section 8.10 No Set-Off
	 	 	51	 
	 
	 	 	 	 
	ARTICLE IX. MISCELLANEOUS
	 	 	51	 
	 
	 	 	 	 
	Section 9.1 Expenses
	 	 	51	 
	Section 9.2 Notices
	 	 	52	 
	Section 9.3 Public Announcements
	 	 	52	 
	Section 9.4 Severability
	 	 	53	 
	Section 9.5 Entire Agreement
	 	 	53	 
	Section 9.6 Assignment
	 	 	53	 
	Section 9.7 No Third Party Beneficiaries
	 	 	53	 
	Section 9.8 Amendment
	 	 	53	 
	Section 9.9 Governing Law
	 	 	53	 
	Section 9.10 Waiver of Jury Trial
	 	 	54	 
	Section 9.11 Counterparts and Electronic Delivery
	 	 	54	 
	Section 9.12 Specific Performance
	 	 	54	 
	Section 9.13 Additional Seller Matters
	 	 	54	 

Exhibits

	 	 	 
	Exhibit A
	 	Assumption Agreement
	Exhibit B
	 	Company Bill of Sale
	Exhibit C
	 	Indemnification Agreement
	Exhibit D
	 	Letter of Credit
	Exhibit E
	 	HQ Sublease
	Exhibit F
	 	Intercompany Balance Settlement and Release Agreement
	Exhibit G
	 	Seller Bill of Sale
	Exhibit H
	 	Seller Term Note
	Exhibit I
	 	Transition Services Agreement
	Exhibit J
	 	Net Balance Statement
	Exhibit K
	 	FBR Release

 

iii

 

STOCK PURCHASE AGREEMENT

STOCK PURCHASE AGREEMENT, dated as of August 10, 2011 (this “Agreement”), by and
between Grubb & Ellis Company, a Delaware corporation (“Seller”), as seller, and IUC-SOV,
LLC, a Delaware limited liability company (“Purchaser”), as purchaser.

W I T N E S S E T H:

WHEREAS, Seller owns 100 shares of common stock of Daymark Realty Advisors, Inc., a Delaware
corporation (the “Company”), $0.01 par value per share (the “Company Common
Stock”), which shares of Company Common Stock (the “Shares”) constitute all of the
issued and outstanding shares of capital stock of the Company; and

WHEREAS, Seller wishes to sell to Purchaser, and Purchaser wishes to purchase from Seller, all
of the Shares, upon the terms and subject to the conditions set forth herein.

WHEREAS, the Closing (as defined below) of the Contemplated Transactions (as defined below)
shall occur concurrently with the execution and delivery of this Agreement.

NOW, THEREFORE, in consideration of the foregoing and the respective agreements, covenants,
representations and warranties hereinafter set forth and other good and valuable consideration, the
receipt and adequacy of which are hereby acknowledged, and intending to be legally bound hereby,
the Parties hereto hereby agree as follows:

ARTICLE I.

DEFINITIONS

Section 1.1 Certain Defined Terms. Unless the context otherwise requires, the
following terms, when used in this Agreement, shall have the respective meanings specified below:

“Acquired Company” shall mean the Company and each of its Subsidiaries separately, and
the “Acquired Companies” shall mean the Company and all of its Subsidiaries collectively.

“Acquired Company Contract” shall mean any Contract to which any Acquired Company is a
party.

“Acquired Company Employees” shall have the meaning specified in Section
6.11(c).

“Action” shall mean any claim, action, charge, complaint, suit, litigation,
arbitration, grievance, inquiry, proceeding, hearing, audit, examination or investigation
(including any civil, criminal, administrative, investigative or appellate proceeding) by or before
any Governmental Authority, arbitrator or mediator.

“Additional Written Consents” shall have the meaning specified in Section
2.7(d).

 

 

 

“Affiliate” shall mean, with respect to any specified Person, any other Person that
directly, or indirectly through one or more intermediaries, controls, is controlled by, or is under
common control with, such specified Person.

“Affiliated Group” shall mean a group of corporations (consisting of Seller and/or any
of its Subsidiaries) with which the Company filed consolidated, combined, unitary or similar Tax
Returns.

“Agreement” shall have the meaning specified in the preamble to this Agreement.

“Alesco Earn Out Payment” shall mean (i) all amounts (if any) received by NNNRA or any
of its Affiliates pursuant to Section 1 of the Distribution Agreement and/or (ii) the value of all
proceeds received by NNNRA and its Affiliates from the Transfer of any rights and interests under
Section 1 of such Distribution Agreement.

“Annual Financial Statements” shall have the meaning specified in Section 4.5.

“Arbiter” shall have the meaning specified in Section 2.3(b).

“Assets” shall mean assets, properties and rights of every kind and description
whatsoever (whether tangible or intangible), including real, personal and mixed property.

“Assumption Agreement” shall mean that certain Assumption Agreement in the form
attached hereto as Exhibit A.

“Basket Amount” shall have the meaning specified in Section 8.7(a).

“Business” shall mean the businesses and operations engaged in by the Acquired
Companies.

“Business Day” shall mean any day that is not a Saturday, a Sunday or other day on
which banks are required or authorized by Law to be closed in New York City.

“Business Facility” is any real property, including the land, the improvements and the
personal property thereon, that is owned or leased by any of the Acquired Companies.

“Claim Notice” shall have the meaning specified in Section 8.5.

“Closing” shall have the meaning specified in Section 2.5.

“Closing Cash Balance” shall have the meaning specified in Section 2.3(b).

“Closing Cash Statement” shall have the meaning specified in Section 2.3(b).

“Closing Date” shall have the meaning specified in Section 2.5.

“COBRA” shall mean the Consolidated Omnibus Budget Reconciliation Act of 1985, as
amended and as codified in Section 4980B of the Code and Section 601 et. seq. of ERISA.

“Code” shall mean the Internal Revenue Code of 1986, as amended through the date
hereof.

 

2

 

“Company” shall have the meaning specified in the preamble to this Agreement.

“Company Bill of Sale” shall mean that certain bill of sale in substantially the form
attached hereto as Exhibit B.

“Company Common Stock” shall have the meaning specified in the recitals to this
Agreement.

“Confidentiality Agreement” shall mean the confidentiality agreement, dated as of
April 8, 2011, by and between Seller and Sovereign Capital (as amended or modified in accordance
with its terms).

“Consent” shall mean any consent, approval, authorization, permission, ratification or
waiver from, or notice to, any Person other than a Governmental Authority.

“Contemplated Transactions” shall have the meaning specified in Section 3.1.

“Contract” shall mean any agreement, contract, subcontract, lease, instrument, note,
option, purchase order, license or sublicense or other commitment or undertaking of any nature
(whether written or oral), in each case that is legally binding.

“Control” (including the terms “controlling,” “controlled by” and “under common
control with”) shall mean, with respect to the relationship between or among two or more Persons,
the possession, directly or indirectly, or as trustee, personal representative or executor, of the
power to direct or cause the direction of the affairs or management of a Person, whether through
the ownership of voting securities, as trustee, personal representative or executor, by Contract or
otherwise, including the ownership, directly or indirectly, of securities having the power to elect
a majority of the board of directors or similar body governing the affairs of such Person.

“Controlling Party” shall have the meaning specified in Section 8.4(c).

“Covered Business” shall mean the provision of real estate property and/or asset
management services pursuant to a property management agreement, asset management agreement or
master lease.

“Director Election Written Consents” shall have the meaning specified in Section
2.7(c).

“Disclosure Schedule” shall mean the Disclosure Schedule attached hereto, dated as of
the date hereof, delivered by Seller to Purchaser at or prior to the execution of this Agreement by
the Parties, and forming a part of this Agreement, which Disclosure Schedule shall (i) consist of
items of disclosure categorized by sections, and (ii) provide information with respect to, or
otherwise qualify, the representations, warranties and covenants set forth in the corresponding
Sections of this Agreement and any other Sections of this Agreement to the extent that it is
reasonably apparent that such disclosure applies to such other sections of this Agreement.

 

3

 

“Distribution Agreement” shall mean that certain Distribution Agreement dated as of
June 1, 2011, by and among by and among Seller, Grubb & Ellis Alesco Global Advisors, LLC, Lazard
Asset Management LLC, NNNRA, GBE Alesco, Corp., Jay P. Leupp and Joseph G. Welsh.

“Dollars” and the sign “$” shall each mean lawful money of the United States
of America.

“Employee Plans” shall have the meaning specified in Section 4.18(a).

“Employment Termination Cooperation Period” shall have the meaning specified in
Section 6.11(e).

“Encumbrance” shall mean any security interest, pledge, mortgage, lien, charge or
other similar encumbrance.

“Environmental Law” shall mean any federal, state or local Law relating to pollution
or exposure of any Person to Hazardous Materials, including Laws relating to emissions, discharges,
releases or threatened releases of Hazardous Materials into the environment (including ambient air,
surface water, groundwater, land surface or subsurface), or otherwise relating to the manufacture,
processing, distribution, use, treatment, storage, generation, disposal, transport or handling of
any Hazardous Materials or the cleanup or remediation of any contamination.

“ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended
through the date hereof.

“Estimated Closing Cash Payment” shall have the meaning specified in Section
2.2.

“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended through the
date hereof.

“Financial Statements” shall have the meaning specified in Section 4.5.

“GAAP” shall mean United States generally accepted accounting principles and practices
consistently applied (except as otherwise noted in the applicable financial statements).

“GERI” shall mean Grubb & Ellis Realty Investors, LLC.

“Governmental Authority” shall mean any national, federal, state, provincial,
municipal, local, foreign or other government, governmental, regulatory or administrative
authority, agency or commission or any court, tribunal or other judicial body.

“Governmental Authorization” shall mean any: (a) permit, license, certificate,
franchise, permission, variance, clearance, registration, qualification or authorization issued,
granted, given or otherwise made available by or under the authority of any Governmental Authority
or pursuant to any Law; or (b) right under any Contract with any Governmental Authority.

“Governmental Order” shall mean any legally binding order, writ, judgment, injunction,
decree, stipulation, award or determination of any Governmental Authority.

 

4

 

“Guaranteed Obligations” shall have the meaning specified in Section 6.8.

“Hazardous Materials” shall mean (i) any “hazardous substance” as defined pursuant to
the Comprehensive Environmental Response, Compensation and Liability Act; (ii) any material defined
as “hazardous waste” pursuant to the Solid Waste Disposal Act; (iii) “hazardous materials” as
defined in the Hazardous Materials Transportation Act; and (iv) any petroleum and petroleum
products, including crude oil and any fraction thereof.

“HQ Lease” shall mean that certain Office Building Lease dated as of March 1, 2006, as
amended, by and between Tustin Center Tower LLC, as landlord and GERI (formerly known as Triple Net
Properties, LLC), as tenant.

“HQ Sublease” shall mean that certain Sublease in the form attached hereto as
Exhibit E.

“Indebtedness” shall mean (a) the principal of and/or interest accrued on (i)
indebtedness for money borrowed and (ii) indebtedness evidenced by notes, debentures, bonds or
other similar instruments; (b) all obligations issued or assumed as the deferred purchase price of
property (but excluding accounts payable arising in the ordinary course of business consistent with
past practice); (c) all obligations for the reimbursement of any obligor on any letter of credit or
similar credit transaction servicing obligations of a Person or of a type described in clauses (a)
and (b) above and (d) and (e) below, but only to the extent of the obligation secured; (d) all
obligations to pay rent or other amounts under any lease of real property or personal property
which obligations are required to be classified and accounted for as capital leases in accordance
with GAAP, and the amount of such obligations shall be the capitalized amount thereof determined in
accordance with GAAP; and (e) all guarantees of obligations of the type referred to in clauses (a)
through (d) of other Persons; provided, however, that Indebtedness shall not
include any obligations of the type referred to in clauses (a) through (e) above of any Acquired
Company to Seller or any Subsidiaries of Seller (including any other Acquired Company).

“Indemnification Agreement” shall mean that certain Indemnification Agreement in
substantially the form attached hereto as Exhibit C.

“Indemnified Person” shall have the meaning specified in Section 8.2(b).

“Indemnified Representatives” shall have the meaning specified in Section 6.9.

“Indemnifying Person” shall have the meaning specified in Section 8.4(a).

“Indemnity Cap” shall have the meaning specified in Section 8.8(a).

“Initial Stock Purchase Price” shall have the meaning specified in Section
2.2.

“Intercompany Balance Settlement and Release Agreement” shall mean that Settlement and
Release Agreement attached hereto as Exhibit F.

“Interim Financial Statements” shall have the meaning specified in Section
4.5.

 

5

 

“IP Rights” shall mean any or all of the following throughout the world: (i) all
patents and patent applications, and all patents that issue therefrom, and all reissues,
reexaminations, divisions, renewals, extensions, provisionals, continuations and
continuations-in-part thereof; (ii) all inventions (whether patentable or not), invention
disclosures, trade secrets, proprietary or confidential information and know-how; (iii) all
copyrights, mask works, copyright and mask work registrations and applications; (iv) all corporate
names, trade names, logos, trademarks and service marks, trademark and service mark registrations
and applications and Internet domain names; and (v) rights to databases.

“IRS” shall mean the Internal Revenue Service of the United States of America.

“Knowledge” shall mean (i) with respect to Purchaser, the actual knowledge of any
officer of Purchaser, or (ii) with respect to Seller, the actual knowledge of any officer of Seller
or the Company or Mathieu Streiff, consultant to Seller and former General Counsel of Seller. For
the avoidance of doubt, “Knowledge” shall not be construed to refer to the knowledge of any
stockholder, officer, director, manager, agent, employee or representative of Seller other than
those Persons described in the prior sentence, or any Affiliate of Seller, or to impose upon any
such Person any individual personal liability.

“Law” shall mean any constitution, statute, law (including common law), ordinance,
regulation, rule, code, Governmental Order or other requirement enacted, enforced, entered or
promulgated by any Governmental Authority.

“Leased Real Property” shall mean the real property presently leased by or subject to
an agreement to lease or sublease or other use or occupancy agreement by any Acquired Company as
tenant.

“Letter of Credit” shall mean a letter of credit in substantially the form attached
hereto as Exhibit D.

“Letter of Credit Amount” shall mean the amount set forth on Section 1.1 of
the Disclosure Schedule and identified thereon as the Letter of Credit Amount.

“Liabilities” shall mean any and all debts, liabilities, guarantees, commitments and
obligations, whether fixed, contingent or absolute, asserted or unasserted, matured or unmatured,
liquidated or unliquidated, accrued or not accrued, known or unknown, due or to become due,
whenever or however arising (including whether arising out of any contract or any tort based on
negligence or strict liability) and whether or not the same would be required by GAAP to be stated
in financial statements or disclosed in the notes thereto.

“Losses” shall mean any and all losses, Actions, charges, claims, complaints,
disputes, demands, Governmental Orders, assessments, damages, dues, penalties (including interest),
fines, amounts paid in settlement, Taxes, liens or reasonable costs and expenses (including
reasonable attorneys’ and accountants’ fees and disbursements), of any nature whatsoever.

“Marked Assets” shall have the meaning specified in Section 6.4(a)(ii).

 

6

 

“Material Adverse Effect” shall mean any result, fact, event, change, development or
effect that has, or could reasonably be expected to have, a materially adverse effect on (a) the
Assets, operations, results of operations or condition (financial or otherwise) of the Acquired
Companies taken as a whole, or (b) the ability of Seller or Purchaser to consummate the
Contemplated Transactions; provided, however, that none of the following shall be
deemed, either alone or in combination, to constitute a Material Adverse Effect, nor shall any of
the following be taken into account in determining whether there has been or will be or would
reasonably be expected to be, a Material Adverse Effect: any fact, event, change, development or
effect resulting from or arising out of (i) the announcement of this Agreement or consummation of
the Contemplated Transactions or the identity of Purchaser; (ii) the performance by Seller or
Purchaser of its respective obligations under this Agreement or as required by applicable Law or
accounting requirements; (iii) actions or effects caused by or under the responsibility of
Purchaser; (iv) general economic conditions in the United States; (v) general conditions in the
industries in which the Acquired Companies conduct their Business; (vi) the initiation by any
Person other than Seller or any of its Subsidiaries of proceedings under Chapter 11 of the United
States Bankruptcy Code or other similar statutes or Laws or any adverse developments related to any
such proceedings; (vii) any natural disaster or any acts of terrorism, sabotage, military action or
war (whether or not declared) or any escalation or worsening thereof; (viii) any changes in Law;
(ix) any changes in interest rates or financial or currency markets; (x) the failure of any
Acquired Company to meet any internal projections or forecasts; or (xi) changes, events or
circumstances that exist or have occurred as of the date of this Agreement and that are reflected
in the Disclosure Schedule or disclosed in any Seller SEC Document .

“Material Contracts” shall have the meaning specified in Section 4.13(a).

“Met 10 Obligations” shall have the meaning specified in Section 6.15(c).

“Met 10 Settlement Agreement” shall mean that certain settlement agreement between the
tenant-in-common investors, who purchased interests comprising 85% of Met Center 10, GERI and
Lexington Insurance Company.

“Met 10 Subsequent Payment Amount” shall mean the amount, if any, paid in accordance
with the Met 10 Settlement Agreement by GERI to the specified tenant in common holders under
Paragraph 8 of the Met 10 Settlement Agreement.

“Met 10 Trigger Event” shall mean the date on which GERI is required to pay to the
specified tenant in common holders the Met 10 Subsequent Payment Amount.

“Met Center 10” shall mean the office building located at 7551 Metro Center Drive,
Austin, Texas.

“Multiemployer Plans” shall have the meaning specified in Section 4.18(a).

“Net Balance” shall mean the net balance, as of the close of business on the Business
Day immediately preceding the Closing Date, of any intercompany payables or receivables with
respect to Seller and its Subsidiaries (other than the Company and its Subsidiaries) on the one
hand and the Company and its Subsidiaries on the other hand.

 

7

 

“Net Balance Statement” shall have the meaning specified in Section 2.4(a).

“New Lease Agreements” shall have the meaning specified in Section 6.16.

“NNNCSN Notes Indenture” shall have the meaning specified in Section
4.22(b)(ii).

“NNNRA” shall mean NNN Realty Advisors, Inc., a Delaware corporation.

“Non-controlling Party” shall have the meaning specified in Section 8.4(c).

“Offset Amount” shall have the meaning specified in Section 8.3(a).

“Owned Real Property” shall mean the real property owned by any Acquired Company.

“Party” shall mean each of Seller, the Company or Purchaser, individually, and
“Parties” shall mean all of the foregoing collectively.

“Permit” shall have the meaning specified in Section 4.11.

“Permitted Encumbrances” shall mean such of the following as to which no enforcement,
collection, execution, levy or foreclosure proceeding shall have been commenced: (a) Encumbrances
for Taxes, assessments, charges, levies or other claims not yet delinquent, or the validity of
which are being contested in good faith; (b) Encumbrances imposed by Law, such as materialmen’s,
mechanics’, carriers’, warehousemen’s, workmen’s and repairmen’s liens and other such liens for
amounts not yet delinquent, or the validity of which are being contested in good faith; (c) pledges
or deposits to secure obligations under workers’ compensation Laws or similar legislation or to
secure public or statutory obligations; (d) Encumbrances, irregularities, easements, reserves,
servitudes, encroachments, rights of way, covenants, restrictions or other imperfections of title
or possession, whether or not of public record, which would be disclosed by a current survey, title
report or title commitment, or inspection, the existence of which do not materially interfere with
the present use of the affected property; (e) Encumbrances relating to Indebtedness encumbering or
securing the Owned Real Property and Leased Real Property; (f) registered easements, rights-of-way,
restrictive covenants and servitudes and other similar rights in land granted to, reserved or taken
by any Governmental Authority or public utility or any registered subdivision, development,
servicing, site plan or other similar agreement with any Governmental Authority or public utility;
(g) customary contractual provisions providing for retention of title to goods until payment is
made and (h) all zoning or other similar restrictions.

“Person” shall mean any individual, partnership, firm, corporation, limited liability
company, joint venture, association, trust, unincorporated organization or other entity, as well as
any syndicate or group that would be deemed to be a person under Section 13(d)(3) of the Exchange
Act.

“Post-Closing Period” shall mean any taxable period that begins after the Closing Date
and the portion of any Straddle Period beginning after the Closing Date.

 

8

 

“Pre-Closing Period” shall mean any taxable period ending on or before the Closing
Date and the portion of any Straddle Period ending on the Closing Date. Except as otherwise
provided in Section 7.1(b), the Closing Date is specifically included in any applicable Pre-Closing
Period.

“Preliminary Closing Cash Statement” shall have the meaning specified in Section
2.3(a).

“Promptly Terminated Employee” shall have the meaning specified in Section
8.2(a)(v).

“Purchaser” shall have the meaning specified in the preamble to this Agreement.

“Purchaser Closing Contribution” shall mean the amount set forth on Section
1.1 of the Disclosure Schedule and identified thereon as the Purchaser Closing Contribution.

“Purchaser FSA Plans” shall have the meaning specified in Section 6.11(d).

“Purchaser Fundamental Representations” shall mean the representations and warranties
of Purchaser specified in Section 5.1, Section 5.3, Section 5.4 and
Section 5.7.

“Purchaser Indemnified Persons” shall have the meaning specified in Section
8.2(a).

“Purchaser Welfare Plans” shall have the meaning specified in Section 6.11(c).

“Reference Balance Sheet Date” shall have the meaning specified in Section
4.5.

“Regulations” shall mean the Treasury Regulations (including Temporary Regulations)
promulgated by the United States Department of Treasury with respect to the Code or other federal
tax statutes, as amended through the date hereof.

“Restricted Term” shall mean the period beginning on the Closing Date and ending on
the one (1) year anniversary of the Closing Date.

“Restricted Term/Notes” shall mean the period beginning on the Closing Date and ending
on the six (6) month anniversary of the Closing Date.

“Retained Employees” shall mean all pre-closing employees of the Acquired Companies
that remain employees of the Acquired Companies immediately after the Closing.

“Review Period” shall have the meaning specified in Section 2.3(b).

“Section 338(h)(10) Election” shall have the meaning specified in Section
7.1(e).

“Securities Act” shall mean the Securities Act of 1933, as amended through the date
hereof.

“Seller” shall have the meaning specified in the preamble to this Agreement.

“Seller Bill of Sale” shall mean that certain bill of sale in substantially the form
attached hereto as Exhibit G.

 

9

 

“Seller Closing Net Balance Payment” shall mean an amount equal to $500,000.

“Seller Entities” shall have the meaning specified in Section 3.1.

“Seller FSA Plans” shall have the meaning specified in Section 6.11(d).

“Seller Fundamental Representations” shall mean the representations and warranties of
Seller specified in Section 3.1, Section 3.3, Section 3.5, Section
4.2 and Section 4.20.

“Seller Group” shall mean the affiliated group of corporations that files a
consolidated U.S. federal income Tax Return the common parent of which is Seller.

“Seller Indemnified Persons” shall have the meaning specified in Section
8.2(b).

“Seller Marks” shall have the meaning specified in Section 6.4(a)(i).

“Seller SEC Document” shall mean any report, schedule, form, statement or other
document (including exhibits thereto and information incorporated therein) filed by Seller with the
Securities and Exchange Commission prior to the date hereof.

“Seller Term Note” means the Term Note issued by Seller on the Closing Date, in the
initial principal amount contemplated by Section 2.9, and in the form attached hereto as
Exhibit H.

“Shares” shall have the meaning specified in the recitals to this Agreement.

“Specified Claims” shall have the meaning specified in Section 8.4(b).

“Stock Purchase Price” shall have the meaning specified in Section 2.3(d).

“Straddle Period” shall mean any taxable period that begins before and ends after the
Closing Date.

“Straddle Period Taxes” shall have the meaning specified in Section 7.1(a).

“Subsidiary” shall mean, with respect to any Person, any other domestic or foreign
corporation, limited liability company, general or limited partnership, unincorporated association
or other business entity of which (i) if a corporation, a majority of the total voting power of
shares of stock entitled (without regard to the occurrence of any contingency) to vote in the
election of directors, managers or trustees thereof is at the time owned or controlled, directly or
indirectly, by that Person or one or more of the other Subsidiaries of that Person or a combination
thereof, or (ii) if a limited liability company, partnership, association or other business entity,
a majority of the partnership or other similar ownership interests thereof is at the time owned or
controlled, directly or indirectly, by any Person or one or more Subsidiaries of that Person or a
combination thereof.

 

10

 

“Tax” or “Taxes” shall mean any and all U.S. federal, state, local, or foreign
taxes, fees, levies, duties, tariffs, imposts, and other like charges (together with any and all
interest, penalties, loss, damage, liability, expense, additions to tax and additional amounts or
costs incurred or imposed with respect thereto), whether disputed or not, imposed by any
Governmental Authority or any taxing authority, including (i) taxes or other charges on or with
respect to income, franchise, escheat, windfall or other profits, gross receipts, real or personal
property, sales, use, capital gains, capital stock or shares, premium, payroll, employment, social
security (or similar), workers’ compensation, occupation, unemployment compensation, disability,
environmental (including taxes under Code Section 59A), alternative or add-on minimum, estimated or
net worth; (ii) taxes or other charges in the nature of excise, withholding, ad valorem, license,
registration, stamp, transfer, value added, or gains taxes; and (iii) customs duties, tariffs, and
similar charges, in any such case whether imposed directly or as a result of being a member of a
consolidated, combined, or unitary tax group, under Treasury Regulations Section 1.1502-6 (or any
comparable provision of applicable state, local, or foreign law), as a transferee or successor, by
contract, or otherwise.

“Tax Contest” shall mean an audit, claim, dispute or controversy relating to Taxes.

“Tax Returns” shall mean all reports, returns, declarations, statements or other
information required to be supplied to a taxing authority in connection with Taxes.

“Third Party Proceeding” shall have the meaning specified in Section 8.4.

“Transaction Documents” shall mean this Agreement, the Assumption Agreement, Company
Bill of Sale, the Seller Bill of Sale, the HQ Sublease, the Intercompany Balance Settlement and
Release Agreement, the Seller Term Note, the Transition Services Agreement and all other documents
executed at the Closing in connection therewith.

“Transfer” shall mean any sale, transfer, assignment, pledge, mortgage, exchange,
hypothecation, grant of a security interest or other direct or indirect disposition or encumbrance
(including by operation of law).

“Transfer Taxes” shall have the meaning specified in Section 6.1.

“Transferee Employer” shall have the meaning specified in Section 6.11(a).

“Transferred Account Balances” shall have the meaning specified in Section
6.11(d).

“Transferred Employees” shall have the meaning specified in Section 6.11(a).

“Transition Services Agreement” means the Transition Services Agreement dated as of
the Closing Date and in the form attached hereto as Exhibit I.

“Treasury Regulations” shall mean the final, temporary, and proposed federal income
tax regulations promulgated under the Code, as such treasury regulations may be amended from time
to time.

“Unpaid Met 10 Legal Expenses” shall have the meaning specified in Section
8.2(a)(iv).

 

11

 

Section 1.2 Other Interpretive Provisions.  Unless otherwise specified herein, the
following interpretive provisions shall apply:

(a) the meanings of defined terms are equally applicable to the singular and plural forms of
such defined terms;

(b) the words “herein,” “hereto,” “hereof” and “hereunder” and
words of similar import shall refer to this Agreement as a whole and not to any particular
provision hereof;

(c) Article, Section, Exhibit and Schedule references are to Articles, Sections, Exhibits and
Schedules of or to this Agreement;

(d) the term “including” is by way of example and not limitation;

(e) the term “documents” includes any and all instruments, documents, agreements,
certificates, notices, reports, financial statements and other writings, whether in physical or
electronic form; and

(f) section headings herein are included for convenience of reference only and shall not
affect the interpretation of this Agreement.

ARTICLE II.

PURCHASE AND SALE

Section 2.1 Purchase and Sale of the Shares. Upon the terms and subject to the
conditions set forth in this Agreement, at the Closing, Seller shall sell, assign, transfer, convey
and deliver to Purchaser, free and clear of any and all Encumbrances (other than restrictions on
transfer under applicable securities Laws), and Purchaser shall purchase, all of the Shares.

Section 2.2 Stock Purchase Price. At the Closing, Purchaser (or its designee) shall
(i) pay to Seller in cash (by wire transfer of immediately available funds) an amount equal to
$500,000 (the “Estimated Closing Cash Payment”) and (ii) assume from Seller pursuant to the
Assumption Agreement the obligation to pay $10,700,000 of the Net Balance (such assumption and the
Estimated Closing Cash Payment being collectively referred to as the “Initial Stock Purchase
Price”).

Section 2.3 Post Closing Adjustment of Estimated Closing Cash Payment.

(a) Within forty-five (45) days after the Closing, Purchaser shall cause to be prepared and
delivered to Seller a statement in reasonable detail (the “Preliminary Closing Cash
Statement”) setting forth the amount of cash and cash equivalents (determined in accordance
with GAAP) held by the Acquired Companies at the Closing and the resulting adjustment to the
Estimated Closing Cash Payment, if any, in accordance with Section 2.3(b), (c) and
(d). The Preliminary Closing Cash Statement will be prepared from the books and records of
the Acquired Companies and in accordance with GAAP, consistently applied.

 

12

 

(b) If Seller disputes the Preliminary Closing Cash Statement, Seller may within fifteen (15)
Business Days after delivery to Seller of the Preliminary Closing Cash Statement (the “Review
Period”) deliver written notice to Purchaser of any objections thereto, which written notice
will specify the rationale for such disagreement and the amount in dispute. The Parties will
attempt in good faith to reach an agreement as to any matters identified in such written notice as
being in dispute. If Purchaser and Seller fail to resolve all such matters in dispute within 10
days after Seller ’s delivery of such written notice to Purchaser, then any matters identified in
such written notice that remain in dispute will be finally and conclusively determined by an
independent auditing firm (the “Arbiter”) selected by Purchaser and Seller. Promptly, but
not later than 20 days after acceptance of its appointment, the Arbiter will determine (based
solely on written and, if requested by the Arbiter, oral presentations and a review of working
papers of Purchaser, Seller and their respective accountants, as applicable, and not by independent
review) the matters in dispute and will render a written report as to the disputed matters, which
written report of the Arbiter will be conclusive and binding upon the Parties. The fees and
expenses of the Arbiter will be shared equally by Seller and Purchaser. If Seller fails to notify
Purchaser of any disputes within the Review Period, the Preliminary Closing Cash Statement will be
conclusive and binding on the Parties. The Preliminary Closing Cash Statement and the amounts set
forth thereon, as finally determined pursuant to this Section 2.3(b), shall constitute the
“Closing Cash Statement” for purposes of this Agreement and the amount of cash and cash
equivalents held by the Acquired Companies at the Closing set forth on the Closing Cash Statement
shall constitute the “Closing Cash Balance” for purposes of this Agreement.

(c) If the Closing Cash Balance is less than the Estimated Closing Cash Payment, then Seller
shall pay to NNNRA in cash an amount equal to the amount by which the Estimated Closing Cash
Payment exceeds the Closing Cash Balance. If the Closing Cash Balance is greater than the Estimated
Closing Cash Payment, then Purchaser shall pay to Seller in cash an amount equal to the amount by
which the Closing Cash Balance exceeds the Estimated Closing Cash Payment.

(d) Payments under this Section 2.3 shall be made within five (5) Business Days (by
wire transfer of immediately available funds) following the final agreement upon or determination
of the Closing Cash Balance in accordance with this Section 2.3. Any payment by Purchaser
to Seller pursuant to this Section 2.3 will be treated by the Parties as an adjustment to
the Initial Stock Purchase Price. The Initial Purchase Price as so adjusted will be referred to in
this Agreement as the “Stock Purchase Price.” Any payment by Seller to NNNRA pursuant to
this Section 2.3 will be deemed to be an additional payment in satisfaction of a portion of
the Net Balance as of Closing. For the avoidance of doubt, no payment by Seller to NNNRA pursuant
to this Section 2.3 will reduce the principal amount of the Seller Term Note or reduce or
offset the Seller Closing Net Balance Payment.

(e) In connection with the preparation of the Preliminary Closing Cash Statement and the
Closing Cash Statement and the final determination of the Closing Cash Balance, Purchaser and
Seller shall give each other and their respective representatives, and Purchaser shall cause the
Company and its Subsidiaries to give Seller and its representatives, reasonable access, during
normal business hours and upon reasonable notice, to the books and records, the financial systems
and personnel and any other information of the Business that Seller reasonably requests, and
Purchaser shall cooperate, and shall cause the Company and its Subsidiaries to cooperate, with
Seller and its representatives in connection therewith.

 

13

 

Section 2.4 Agreed Net Balance; Payments in Satisfaction of Net Balance.

(a) The net balance statement (the “Net Balance Statement”) attached hereto as
Exhibit J sets forth the Net Balance amount as of the open of business on the Closing Date,
including each Person that is owed an intercompany amount and the obligor and aggregate amount
thereof.

(b) In full satisfaction of the entire portion of the Net Balance that is not assumed by
Purchaser, at the Closing, Seller shall (i) pay to NNNRA, in cash, by wire transfer of immediately
available funds to a bank account designated by NNNRA, an amount equal to the Seller Closing Net
Balance Payment and (ii) deliver to NNNRA the Seller Term Note, duly executed by Seller.

(c) In full satisfaction of the entire portion of the Net Balance that is assumed by Purchaser
pursuant to the Assumption Agreement, at the Closing, Purchaser shall (i) pay to NNNRA, in cash, by
wire transfer of immediately available funds to a bank account designated by NNNRA, an amount equal
to the Purchaser Closing Contribution, (ii) enter into the Indemnification Agreement with NNNRA and
(iii) procure the delivery to NNNRA of the Letter of Credit.

Section 2.5 Closing. Upon the terms and subject to the conditions of this Agreement,
the sale and purchase of the Shares and the consummation of the other transactions contemplated by
this Agreement shall take place at a closing (the “Closing”) to be held at Jenner & Block
LLP, 353 N. Clark Street, Chicago, Illinois 60654, on the date hereof, by the electronic delivery
of executed documents (the “Closing Date”) concurrently with the execution and delivery of
this Agreement. The Closing will be deemed effective as of 9:00 a.m. (Eastern time) on the Closing
Date.

Section 2.6 Closing Deliveries of Seller. At the Closing, Seller shall deliver, or
cause to be delivered, the following:

(a) To Purchaser, a stock certificate representing all of the Shares, duly endorsed in blank
or accompanied by stock powers duly executed in blank;

(b) To Purchaser, resignations executed by each of the directors of the Company and each of
its Subsidiaries as of the Closing Date and effective upon Closing;

(c) To Purchaser, the Seller Bill of Sale, duly executed by Seller and/or certain of its
Subsidiaries (other than the Acquired Companies);

(d) To Purchaser, a certificate of non-foreign status in accordance with Code Section
1445(b)(2) and Treasury Regulations Section 1.1445-2(b)(2).

(e) To GERI, the HQ Sublease, duly executed by Seller;

(f) To the Company, the Transition Services Agreement, duly executed by Seller;

(g) To NNNRA, the Intercompany Balance Settlement and Release Agreement, duly executed by
Seller;

(h) To Purchaser, the release agreement in the form attached hereto as Exhibit K, duly
executed by FBR Capital Markets & Co.;

 

14

 

(i) To NNNRA, the Seller Term Note, duly executed by Seller;

(j) To Purchaser, the Indemnification Agreement, duly executed by Seller; and

(k) To NNNRA, a wire transfer of immediately available funds to a bank account designated by
NNNRA in an amount equal to the Seller Closing Net Balance Payment.

Section 2.7 Closing Deliveries of Purchaser. At the Closing, Purchaser shall deliver,
or cause to be delivered, the following:

(a) To Seller, the Estimated Closing Cash Payment by wire transfer of immediately available
funds to a bank account designated by Seller;

(b) To Seller, the Assumption Agreement, duly executed by Purchaser, pursuant to which
Purchaser is assuming from Seller the obligation to pay $10,700,000 of the Net Balance;

(c) To Seller and each Acquired Company, (i) a duly adopted and executed written consent of
Purchaser electing, as the sole stockholder of the Company, directors of the Company and (ii) a
duly adopted and executed written consent of the sole stockholder of each Acquired Company (other
than Company) electing, as the sole stockholder of such Acquired Company, directors of such
Acquired Company (the “Director Election Written Consents”);

(d) To Seller, a duly adopted and executed written consent of the board of directors, manager
or managers (or other applicable managing Person or Persons) of each Acquired Company approving,
among other things, such Acquired Company’s execution and performance of each Transaction Document
to which such Acquired Company is a party (the “Additional Written Consents”);

(e) To Seller, the Company Bill of Sale, duly executed by the Acquired Companies;

(f) To Seller, the Transition Services Agreement, duly executed by the Company;

(g) To Seller, the HQ Sublease, duly executed by GERI;

(h) To Seller, the Acknowledgment of Assumption attached as an exhibit to the Assumption
Agreement, duly executed by the Company and NNNRA, pursuant to which the Company and NNNRA
acknowledge that Purchaser has assumed from Seller $10,700,000 of the Net Balance;

(i) To Seller, the Intercompany Balance Settlement and Release Agreement, duly executed by
each Acquired Company;

(j) To Seller, the Indemnification Agreement, duly executed by Purchaser and NNNRA;

 

15

 

(k) To Seller, (i) written evidence or other confirmation of the delivery to NNNRA of the
Letter of Credit in a face amount of not less than the Letter of Credit Amount, naming NNNRA as
beneficiary and issued by a commercial bank having total assets in excess of $3,000,000,000, and
(ii) a copy of such Letter of Credit; and

(l) To NNNRA, a wire transfer of immediately available funds to a bank account designated by
NNNRA in an amount equal to the Purchaser Closing Contribution, in satisfaction of a portion of the
Net Balance assumed by Purchaser.

Section 2.8 Timing of Closing. The delivery of the items described in Section
2.6 and Section 2.7 shall occur in the following order:

(a) first, the simultaneous delivery of the items described in Section 2.6(a),
and (b) and Section 2.7(a) and (b) by Seller and Purchaser, respectively
(the “Stock Sale Deliveries”);

(b) second, immediately following the Stock Sale Deliveries, the execution and
delivery of the Director Election Written Consents and the Additional Written Consents;

(c) third and finally, immediately following the Stock Sale Deliveries and the
execution and delivery of the Director Election Written Consents, the simultaneous delivery and
performance of each of the other actions and deliveries described in Section 2.6 and
Section 2.7.

Notwithstanding anything herein to the contrary, no documents delivered or actions taken at
the Closing (including all documents or actions described in Section 2.6 and Section
2.7) shall be considered effective or complete unless or until all other such deliveries or
actions are completed or waived in writing by the Party against whom such waiver is sought to be
enforced, regardless of the timing or deemed timing of such deliveries or actions as set forth in
this Section 2.8.

Section 2.9 Principal Amount of Seller Term Note. The initial principal amount of the
Seller Term Note (issued at Closing) will be equal to $5,000,000.

Section 2.10 Withholding. Notwithstanding any other provision of this Agreement,
Purchaser and the Company shall be entitled to deduct and withhold from any consideration otherwise
paid or delivered in connection with the transactions contemplated by this Agreement to any Person
such amounts that Purchaser and the Company are required to deduct and withhold with respect to any
such payments under the Code or any provision of state, local, or foreign law. To the extent that
amounts are so withheld by Purchaser or the Company, such withheld amounts shall be treated for all
purposes of this Agreement as having been paid to the Person in respect of which such deduction and
withholding was made, and Purchaser and the Company, as applicable, shall remit such withheld
amounts to the applicable Governmental Authority.

 

16

 

ARTICLE III.

REPRESENTATIONS AND WARRANTIES OF SELLER WITH RESPECT TO SELLER

As an inducement to Purchaser to enter into this Agreement, Seller hereby represents and
warrants to Purchaser that, except as set forth in the Disclosure Schedule:

Section 3.1 Organization and Authority. Seller is a corporation validly existing and
in good standing under the laws of Delaware. Each of Seller and Seller’s Subsidiaries that are not
the Company and its Subsidiaries (the “Seller Entities” for purposes of this Article III)
has all necessary corporate power and corporate authority to execute and deliver this Agreement and
the other Transaction Documents to which it is a party and to perform its obligations hereunder and
thereunder and to consummate the sale of the Shares and the other transactions contemplated hereby
and thereby (collectively, the “Contemplated Transactions”). The execution and delivery of
this Agreement and the other Transaction Documents to which a Seller Entity is a party and the
consummation by the Seller Entities of the Contemplated Transactions have been duly and validly
authorized by all necessary corporate action and no other corporate proceedings on the part of the
Seller Entities are necessary to authorize this Agreement and the other Transaction Documents to
which a Seller Entity is a party or to consummate the Contemplated Transactions. This Agreement
and the other Transaction Documents to which a Seller Entity is a party have been duly and validly
executed and delivered by the applicable Seller Entity, and constitute the legal, valid and binding
obligation of the Seller Entities, as applicable, enforceable against them in accordance with their
terms, except as such enforceability may be subject to the laws of general application relating to
bankruptcy, insolvency, and the relief of debtors and rules of law governing specific performance,
injunctive relief, or other equitable remedies.

Section 3.2 No Conflict; Governmental Authorization.

(a) Neither the execution and delivery of this Agreement and the other Transaction Documents
to which a Seller Entity is a party nor the consummation of any of the Contemplated Transactions by
the Seller Entities do or will: (i) contravene, conflict with or result in a violation of any
provision of the charter or bylaws of any Seller Entity; (ii) contravene or conflict with or result
in a violation of any Law or any Governmental Order to which a Seller Entity is subject;
(iii) contravene or conflict with or result in a violation of any of the terms or requirements of
any Governmental Authorization with respect to a Seller Entity; or (iv) contravene or conflict
with, result in any breach of, constitute a default under, require any Consent under, or give to
others any rights of termination, amendment, acceleration, suspension, revocation or cancellation
of, or result in the creation of any Encumbrance (excluding a Permitted Encumbrance) on any of the
Assets of the Business pursuant to, any Contract to which a Seller Entity is a party, except (A) in
the cases of clauses (ii), (iii) and (iv) as would not have a Material Adverse Effect and (B) as
excluded by Section 4.22.

(b) The execution, delivery and performance of this Agreement and the other Transaction
Documents to which a Seller Entity is a party and the consummation of the Contemplated Transactions
by the Seller Entities do not and will not require any Governmental Authorization or other order
of, action by, filing with or notification to any Governmental Authority.

Section 3.3 Ownership of Shares. Seller is the record and beneficial owner of, and
has good and valid title to, all of the Shares, free and clear of any and all Encumbrances (other
than those that may be imposed by applicable securities Laws). Except for this Agreement, none of
the Shares is subject to (i) any option, warrant, purchase right or other Contract that requires
Seller to sell, transfer or otherwise dispose of any Shares or (ii) any voting trust, proxy or
other Contract or understanding with respect to the voting, dividend rights, preferences, sale,
acquisition or other disposition of any of the Shares. At Closing, Purchaser will obtain good and
valid title to the Shares, free and clear of any Encumbrances other than Encumbrances created by
Purchaser.

 

17

 

Section 3.4 Litigation. There are no Actions by or against a Seller Entity pending
before, or, to the Knowledge of Seller, threatened to be brought before, any Governmental Authority
by any third party that seeks to delay or prevent the consummation of, or that would materially
adversely affect the ability of the Seller Entities to consummate, the Contemplated Transactions.

Section 3.5 Broker’s Fees. No Person (other than FBR Capital Markets & Co. and/or one
or more of its Affiliates) will be entitled to receive any brokerage commission, finder’s fee, fee
for financial advisory services or similar compensation in connection with the Contemplated
Transactions based on any Contract made by or on behalf of a Seller Entity for which Purchaser or
the Company is or could become liable or obligated.

ARTICLE IV.

REPRESENTATIONS AND WARRANTIES OF SELLER WITH RESPECT TO THE ACQUIRED COMPANIES

As an inducement to Purchaser to enter into this Agreement, Seller hereby represents and
warrants to Purchaser that, except as set forth in the Disclosure Schedule:

Section 4.1 Organization and Qualification.

(a) The Company is a corporation validly existing and in good standing under the laws of
Delaware and has all requisite corporate power and corporate authority to own, lease and operate
its properties and to conduct its Business in the manner conducted by the Company.

(b) Each of the other Acquired Companies is a corporation or other entity validly existing and
in good standing under the laws of its respective jurisdiction of incorporation, formation or
organization and has all requisite power and authority to own, lease and operate its properties and
to conduct its Business in the manner conducted by such respective Acquired Company.

(c) Each of the Acquired Companies is duly qualified or licensed and in good standing to
conduct its Business in each jurisdiction in which the property owned, leased or operated by it or
the nature of the Business conducted by it makes such qualification or licensing necessary, except
in such jurisdictions where the failure to be so duly qualified or licensed and in good standing
would not, individually or in the aggregate, have a Material Adverse Effect.

Section 4.2 Capitalization.

(a) The entire authorized capital stock of the Company consists of 100 shares of Company
Common Stock, of which the Shares are the only shares of capital stock and other equity interests
of the Company that are issued and outstanding. All of the Shares are held by Seller and are
validly issued, fully paid and nonassessable.

 

18

 

(b) There are no outstanding (i) securities of the Company convertible into, or exchangeable
or exercisable for, shares of capital stock of the Company, (ii) options, warrants to purchase or
subscribe, or other rights to acquire from the Company any shares of capital stock or other equity
securities, or securities convertible into or exchangeable or exercisable for shares of capital
stock or other equity securities of the Company, or rights of first refusal or first offer relating
to any shares of capital stock or other equity securities of the Company, (iii) bonds, debentures,
notes or other Indebtedness or securities of the Company having the right to vote (or convertible
into, or exchangeable for, securities having the right to vote) on any matters on which
stockholders of the Company may vote or (iv) any other rights of any nature to acquire equity
securities of the Company or phantom shares or other derivatives of the Company’s equity
securities.

Section 4.3 Subsidiaries.

(a) Section 4.3 of the Disclosure Schedule sets forth a complete list, as of the date
hereof, of each of the Company’s Subsidiaries, together with the jurisdiction of incorporation,
formation or organization of each such Subsidiary with direct and indirect ownership by Seller
shown thereon.

(b) Section 4.3 of the Disclosure Schedule also sets forth a complete list, as of the
date hereof, of the authorized, issued and outstanding capital stock and other equity interests of
the Company’s Subsidiaries. All of the outstanding shares of capital stock and other equity
interests of the Company’s Subsidiaries are owned beneficially and of record by the Company or the
Subsidiary of the Company indicated on Section 4.3 of the Disclosure Schedule, and are
validly issued, fully paid and nonassessable and constitute all of the issued and outstanding
shares of capital stock or other equity interests of such Subsidiary.

(c) There are no outstanding (i) securities of any Subsidiary of the Company convertible into,
or exchangeable or exercisable for, shares of capital stock of such Subsidiary, (ii)  options,
warrants to purchase or subscribe, or other rights to acquire from any Subsidiary of the Company
any shares of capital stock or other equity securities or securities convertible into or
exchangeable or exercisable for shares of capital stock or other equity securities of such
Subsidiary of the Company, or rights of first refusal or first offer relating to any shares of
capital stock or other equity securities of such Subsidiary, or (iii) bonds, debentures, notes or
other Indebtedness or securities of any Subsidiary of the Company having the right to vote (or
convertible into, or exchangeable for, securities having the right to vote) on any matters on which
equityholders of such Subsidiary may vote, or (iv) any other rights of any nature to acquire equity
securities of a Subsidiary of the Company or phantom shares or other derivatives of the equity
securities of a Subsidiary of the Company.

Section 4.4 No Conflict; Governmental Authorization. Neither the execution and
delivery of the Transaction Documents to which an Acquired Company is a party nor the consummation
of any of the Contemplated Transactions by an Acquired Company do or will: (i) contravene,
conflict with or result in a violation of any provision of the charter or bylaws or organizational
documents to which such Acquired Company is subject; (ii) contravene or conflict with or result in
a violation of any of the terms or requirements of any Governmental Authorization; (iii) contravene
or conflict with, result in any breach of, constitute a default under, require any Consent under,
or give to others any rights of termination, amendment, acceleration, suspension, revocation or
cancellation of, or result in the creation of any Encumbrance (excluding a Permitted Encumbrance)
on any of the Assets of an Acquired Company pursuant to, any Material Contract, except (A) in the
cases of clauses (ii) and (iii) as would not have a Material Adverse Effect and (B) as excluded by
Section 4.22; or (v) require any Governmental Authorization or other order of, action by,
filing with or notification to any Governmental Authority, including pursuant to the
Hart-Scott-Rodino Antitrust Improvements Act of 1976.

 

19

 

Section 4.5 Unaudited Financial Statements. Set forth on Section 4.5 of the
Disclosure Schedule are complete copies of (i) the unaudited consolidated balance sheet and
statement of operations of the Company and its consolidated Subsidiaries as of and for the fiscal
year ended December 31, 2010 (such financial statements, the “Annual Financial
Statements”), and (ii) the unaudited consolidated balance sheet and statement of operations of
the Company and its consolidated Subsidiaries as of March 31, 2011 (the “Reference Balance
Sheet Date”) for the three-month period then ended (the “Interim Financial Statements,”
and together with the Annual Financial Statements, the “Financial Statements”). The
Financial Statements have been prepared on a consistent basis throughout the periods covered
thereby and fairly present in all material respects the financial condition and results of
operations of the Company and its consolidated Subsidiaries as of the respective dates thereof and
for the periods referred to therein, except that the Financial Statements are subject to normal
non-material year-end adjustments and any other adjustments described therein. The Seller included
or reflected the information contained in the Financial Statements (including the balance sheet and
statement of operations information) in the consolidated financial statements of Seller, which
financial statements of Seller have been prepared in all material respects in accordance with GAAP.

Section 4.6 Absence of Changes. Except for the execution and delivery of this
Agreement and the other Transaction Documents to which the Company is a party or as contemplated by
this Agreement or the other Transaction Documents to which the Company is a party, from the
Reference Balance Sheet Date through the date of this Agreement:

(a) none of the Acquired Companies has sold, leased, transferred, assigned or encumbered any
of its assets or properties, other than in the ordinary course of business;

(b) no party (including any Acquired Company) has accelerated, terminated or cancelled (or
given notice thereof) any Contract (or series of related Contracts) involving annual payments of
more than $150,000 to which any Acquired Company is a party or by which any Acquired Company is
bound;

(c) none of the Acquired Companies has canceled, compromised, waived or released any right or
claim (or series of related rights and claims) involving more than $150,000 outside the ordinary
course of business;

(d) none of the Acquired Companies has experienced any damage, destruction or loss to any of
its property that would have a Material Adverse Effect;

 

20

 

(e) none of the Acquired Companies has granted an increase in the base compensation or
benefits of, or made any bonus payment to, any officer of the Acquired Companies, or to any
employee whose base compensation exceeds $150,000;

(f) the Company has not materially changed any of its methods of accounting, accounting
principles, or any other accounting practice;

(g) none of the Acquired Companies has (A) incurred any Indebtedness (provided that, for the
purposes of this clause (A), (x) Indebtedness shall not include accruals or payments of interest or
rents and (y) the phrase “incurred any Indebtedness” as it relates to any guarantee (including any
direct guarantee, non-recourse carve-out guarantee or any other guarantee) shall refer only to the
issuance or grant of any such guarantee and shall not cover whether any Liability associated with
any such guarantee has arisen since the Reference Balance Sheet Date), (B) issued, sold or amended
any debt securities, guaranteed any debt securities of another Person, (C) entered into any “keep
well” or other Contract to maintain any financial statement condition of another Person or entered
into any arrangement having the economic effect of any of the foregoing, (D) loaned, advanced
(other than advancement of expenses to its employees in the ordinary course of business and
inter-company advances and payments) or contributed to the capital of, or invested in, any other
Person or (E) entered into any hedging Contract or other financial agreement or arrangement
designed to protect the Company against fluctuations in commodities prices or exchange rates;

(h) none of the Acquired Companies have changed (in any material respect) payment or
processing practices or policies regarding intercompany transactions;

(i) none of the Acquired Companies has made or rescinded any material, written Tax election,
settled or compromised any material Tax assessment or deficiency, or amended any Tax Return; or

(j) none of the Acquired Companies has committed to do any of the foregoing.

Section 4.7 Accounts Receivable. All accounts receivable of each of the Acquired
Companies (excluding any accounts receivable of an Acquired Company owed by the Company or any of
its Subsidiaries, including any other Acquired Company, or owed by Seller of any of its other
Subsidiaries) have arisen from bona fide transactions. Since the Reference Balance Sheet Date,
neither Seller nor any Acquired Company has taken any action outside of the ordinary course of
business and consistent with past practice to collect such notes or accounts receivable. Seller
has provided Purchaser with a list of all accounts receivable (excluding any accounts receivable of
an Acquired Company owed by another Acquired Company) collected by the Acquired Companies and the
age thereof at the time of payment for the period beginning on April 1, 2011 and ending on July 29,
2011.

 

21

 

Section 4.8 Accounts Payable. All accounts payable of each of the Acquired Companies
(excluding any accounts payable of any Acquired Company owed to the Company or any of its
Subsidiaries, including any other Acquired Company, or owed to Seller or any of its other
Subsidiaries) have arisen from bona fide transactions. Since the Reference Balance Sheet Date, no
Acquired Company has taken any action outside of the ordinary course of business and consistent
with past practice to postpone the payment of its accounts payable. Except as set forth on
Section 4.8 of the Disclosure Schedule, as of the Closing Date, each account payable of the
Acquired Companies is aged less than sixty (60) days. Seller has provided Purchaser with a list of
all accounts payable (excluding any accounts payable of an Acquired Company owed to another
Acquired Company) paid by the Acquired Companies and the age thereof at the time of payment for the
period beginning on April 1, 2011 and ending on July 29, 2011.

Section 4.9 Litigation. As of the date hereof, there are no Actions (other than
Actions relating to personal injuries, accidents or workers compensation claims, in each case
seeking damages less than $100,000) by or against any Acquired Company, pending before or, to the
Knowledge of Seller, overtly threatened to be brought before, any Governmental Authority or
arbitrator or mediator by any third party that would reasonably be expected to have a Material
Adverse Effect.

Section 4.10 Compliance with Laws. Since January 1, 2008, each of the Acquired
Companies has complied with all, and has not violated any, Laws, Governmental Orders and
Governmental Authorizations applicable to it or to the conduct of its business or the ownership or
use of any of its properties or assets, except where such failure to comply or such violation,
individually or in the aggregate, would not have a Material Adverse Effect. There are no
outstanding and uncured written notices from any Governmental Authority of any violation of any Law
applicable to the Acquired Companies, where such violation would have a Material Adverse Effect.

Section 4.11 Permits. The Acquired Companies have all material Governmental
Authorizations necessary in connection with the Business as presently conducted (each such material
Governmental Authorization, a “Permit”) and are not in default or violation of any of them,
and no material Permit will be revoked or terminated or not renewed pursuant to its terms solely as
a result of the consummation of the Contemplated Transactions, except, in all cases, for any
violation, default, revocation, termination or non-renewal that, individually or in the aggregate,
would not have a Material Adverse Effect.

Section 4.12 Environmental Matters. To the Knowledge of Seller,

(a) The Acquired Companies are in compliance in all material respects with all applicable
Environmental Laws.

(b) No written notices of any incurred material violation under any Environmental Law relating
to the operation of the Acquired Companies have been received.

(c) The Acquired Companies have obtained or applied for, and are in material compliance with,
all material Permits that are required by any Governmental Authorization pursuant to any
Environmental Law in order to operate the Business as presently conducted.

(d) Notwithstanding anything to the contrary in this Agreement, this Section 4.12
contains the sole and exclusive representations and warranties of Seller or the Acquired Companies
with respect to environmental and public safety matters, including any arising under any
Environmental Laws.

 

22

 

For the avoidance of doubt, the representations set forth in this Section 4.12 do not
apply to any of the properties listed on Section 4.12 of the Disclosure Schedule.

Section 4.13 Material Contracts.

(a) For purposes hereof, the term “Material Contracts” shall mean all Acquired Company
Contracts:

(i) pursuant to which any Acquired Company provides property or asset management and related
services;

(ii) under which any Acquired Company has created, incurred, assumed or guaranteed
Indebtedness in excess of $250,000;

(iii) involving annual payments by the Business anticipated as of the date of this Agreement
to be in excess of $125,000, or involving annual receipts by the Business anticipated as of the
date of this Agreement to be in excess of $125,000;

(iv) pertaining to employment, severance, change of control or indemnification arrangements
with any officer, director or employee of any of the Acquired Companies that provide for annual
compensation in excess of $75,000 or payments or other benefits that are contingent upon the
Contemplated Transactions;

(v) relating to leases, licenses, installment and conditional sale agreements, and other
Contracts affecting the ownership of, leasing of, title to, use of, or any leasehold or other
interest in, any tangible personal property of any of the Acquired Companies, provided in
each case such Contract involves an amount in excess of $100,000 per annum;

(vi) constituting a collective bargaining agreement or other Contract with any labor union;

(vii) constituting a material joint venture, partnership or similar legal relationship;

(viii) whereby any Acquired Company has an obligation to make an investment in or loan to any
Person;

(ix) relating to a sales broker, sales agency or finder’s relationship with any Acquired
Company;

(x) pursuant to which any Acquired Company has granted a power of attorney or other similar
grant of agency; or

 

23

 

(xi) that prohibit the Acquired Companies from freely engaging in any business in any
geographical area or from soliciting customers.

(b) Section 4.13 of the Disclosure Schedule sets forth a complete list, as of the date
hereof, of all Material Contracts. Except as would not have a Material Adverse Effect, (i) each
Material Contract is valid, binding and enforceable against the relevant Acquired Company, (ii) to
the Knowledge of Seller, the relevant Acquired Company has performed, in all material respects, all
obligations under the Material Contracts required to be performed by it and (iii) to the Knowledge
of Seller, there has not been any material breach or anticipated breach by any other party to any
Material Contract.

(c) To the Knowledge of Seller, no written notice of an Event of Default (as defined in the
NNNCSN Notes Indenture) has been given to the trustee under the NNNCSN Notes Indenture.

Section 4.14 Sufficiency of Assets. The Acquired Companies own, lease or have the
right to use assets that, taking into account the services to be provided (and other rights
extended) under the Transition Services Agreement and the assets to be conveyed by Seller to the
Company pursuant to the Seller Bill of Sale, are sufficient (in all material respects) for the
conduct of the Business as presently conducted. Notwithstanding the foregoing, Section
4.16 contains the sole and exclusive representations and warranties of Seller with respect to
infringement, misappropriation or other violations of IP Rights.

Section 4.15 Insurance. Section 4.15 of the Disclosure Schedule lists each
insurance policy that is in effect immediately prior to the Closing to which any Acquired Company
is a party, a named insured or otherwise the beneficiary of coverage. With respect to each such
insurance policy, as of immediately prior to the Closing, (a) the policy was in full force and
effect and (b) neither Seller nor any Acquired Company was in default with respect to its
respective obligations thereunder.

Section 4.16 Intellectual Property.

(a) Section 4.16(a) of the Disclosure Schedule lists, as of the date of this
Agreement, the following with respect to IP Rights of each Acquired Company:

(i) Section 4.16(a)(i) of the Disclosure Schedule lists, as of the date of this
Agreement, all of the patents and patent applications owned by any of the Acquired Companies,
setting forth in each case the jurisdictions in which such patents and patent applications have
been filed;

(ii) Section 4.16(a)(ii) of the Disclosure Schedule lists, as of the date of this
Agreement, all of the trademark and service mark registrations applications therefor and Internet
domain names owned by any of the Acquired Companies, setting forth in each case the jurisdictions
in which such registrations and applications have been filed; and

(iii) Section 4.16(a)(iii) of the Disclosure Schedule lists, as of the date of this
Agreement, all of the copyright and mask work registrations and applications therefor owned by any
of the Acquired Companies, setting forth in each case the jurisdictions in which such registrations
and applications have been filed.

 

24

 

(b) The Acquired Companies own all right, title and interest in and to the IP Rights
identified in Section 4.16(a)(i), Section 4.16(a)(ii) and Section
4.16(a)(iii) of the Disclosure Schedule, in each case free and clear of all material
Encumbrances, except for Permitted Encumbrances. To the Knowledge of Seller, the operation of the
Business by the Acquired Companies as currently conducted does not infringe the IP Rights of any
other Person. To the Knowledge of Seller, no IP Rights owned by the Acquired Companies has been
infringed, misappropriated or otherwise violated in any material respect by any Person within the
two (2) years prior to the date of this Agreement.

(c) Notwithstanding anything to the contrary in this Agreement, this Section 4.16
contains the sole and exclusive representations and warranties of Seller with respect to
infringement, misappropriation or other violations of IP Rights.

Section 4.17 Real Property.

(a) Section 4.17(a)(i) of the Disclosure Schedule contains a correct list as of the
date hereof of each Owned Real Property owned by any of the Acquired Companies. Section
4.17(a)(ii) of the Disclosure Schedule contains a correct list as of the date hereof of each
Leased Real Property leased or subleased by any of the Acquired Companies (as lessee or sublessee).
Section 4.17(a)(iii) of the Disclosure Schedule contains a correct list as of the date
hereof of any leases or subleases of any Owned Real Property or Leased Real Property leased or
subleased by any of the Acquired Companies (as lessor or sublessor) to any other Person, other than
residential dwelling or apartment leases or vender service contracts or license agreements entered
into by any Acquired Company in the ordinary course of business.

(b) With respect to each lease listed in Section 4.17(a)(ii) of the Disclosure
Schedule:

(i) except with respect to (A) any subleases listed on Section 4.17(a)(iii) of the
Disclosure Schedule, (B) all residential dwelling or apartment tenant leases, commercial retail,
office or industrial tenant leases, or vendor service contracts or license agreements entered into
or assumed by any Acquired Company in the ordinary course of business, and (C) Permitted
Encumbrances for any Indebtedness encumbering any Leased Real Property and other Permitted
Encumbrances, none of the Acquired Companies has subleased, licensed, assigned, transferred or
conveyed any interest in the Leased Real Property or the leasehold interest;

(ii) to the Knowledge of Seller, neither Seller nor any of its Subsidiaries, including the
Acquired Companies, has received any written notice of any pending or threatened condemnation
proceedings, lawsuits, administrative actions or other Actions relating to any Acquired Company’s
occupancy or use of the property; and

(iii) such lease constitutes the entire agreement to which the applicable Acquired Company is
a party with respect to the Leased Real Property leased thereunder.

 

25

 

(c) With respect to each material Owned Real Property listed on Section 4.17(a)(i) of
the Disclosure Schedule:

(i) except with respect to (A) any subleases listed on Section 4.17(a)(iii) of the
Disclosure Schedule, or (B) all residential dwelling or apartment tenant leases, commercial retail,
office or industrial tenant leases, or vendor service contracts or license agreements entered into
or assumed by any Acquired Company in the ordinary course of business, and other than Permitted
Encumbrances, none of the Acquired Companies has leased, licensed, transferred or conveyed any
interest in any Owned Real Property; and

(ii) to the Knowledge of Seller, neither Seller nor any of the Acquired Companies has received
any written notice of any pending or threatened condemnation proceedings, lawsuits, administrative
actions or other Actions relating to any Acquired Company’s occupancy or use of any Owned Real
Property.

Section 4.18 Employee Matters and Benefit Plans.

(a) Section 4.18(a) of the Disclosure Schedule contains a complete list, as of the
date hereof, of all material “employee benefit plans” within the meaning of §3(3) of ERISA, and
each material written agreement, plan, program, fund, policy, or contract providing compensation,
benefits, pension, retirement, profit sharing, stock bonus, stock option, stock purchase, phantom
or stock equivalent, bonus, incentive, deferred compensation, hospitalization, medical, dental,
vision, vacation, life insurance, death benefit, sick pay, disability, or severance, educational
assistance, holiday pay, housing assistance, moving expense reimbursement, fringe benefit or
similar employee benefits that is sponsored, maintained or contributed to by the Acquired Companies
or Seller on behalf of the Acquired Companies and cover any employee or former employee of the
Acquired Companies, or the beneficiaries and dependents of any employee or former employee of the
Acquired Companies excluding, however, any plan which is a multiemployer plan as defined in Section
3(37) or 4001(a)(3) of ERISA or Section 414(f) of the Code (the “Multiemployer Plans”) or
any governmental plan or program requiring the mandatory payment of social insurance taxes or
similar contributions to a governmental fund (collectively, the “Employee Plans”).
Section 4.18(a) of the Disclosure Schedule separately lists all Multiemployer Plans to
which the Acquired Companies are required to contribute. Section 4.18(a) of the Disclosure
Schedule also identifies which Employee Plans are maintained by Seller and which of the Employee
Plans are maintained by the Acquired Companies. Except as disclosed in Section 4.18(a) of
the Disclosure Schedule or as otherwise disclosed to Purchaser, to the Knowledge of Seller, the
Employee Plans are and have at all times been in compliance in all material respects with the
requirements prescribed by applicable Law currently and previously in effect with respect thereto,
and Seller and its Affiliates have performed all material obligations required to be performed by
them under, and are not and have not been in any material respect in violation of the terms of, any
of the Employee Plans. Seller has made available to Purchaser copies of: (i) each Employee Plan;
(ii) if the Employee Plan is funded and will continue to be maintained by the Acquired Companies
after the Closing Date, the most recent annual and periodic accounting of Employee Plan assets;
(iii) the current summary plan description and all summaries of material modifications thereto, for
each Employee Plan subject to ERISA; (iv) the most recent favorable determination letter, or
opinion letter for a prototype plan, issued by the IRS with respect to any Employee Plan intended
to be “qualified” under section 401(a) of the Code; and (v) all employee handbooks.

 

26

 

(b) No Liability under Title IV of ERISA has been incurred by the Acquired Companies or any
trade or business, whether or not incorporated, that together with the Company would be deemed a
“single employer” within the meaning of section 4001(b) of ERISA (any such trade or business, an
“ERISA Affiliate”) that has not been satisfied in full, and no condition exists that would
give rise to any such Liability thereunder.

(c) No Employee Plan provides, or reflects or represents any material liability to provide
retiree welfare benefits to any Person for any reason, except as may be required by COBRA or other
similar applicable Law, and no payment or benefit which will or may be made by the Acquired
Companies in connection with the transactions contemplated by this Agreement to any “disqualified
individual” (as defined in Code section 280G and the regulations thereunder) is or in the aggregate
are reasonably likely to be characterized as an “excess parachute payment” within the meaning of
section 280G(b) of the Code with respect to which a deduction would be disallowed.

(d) Section 4.18(d) of the Disclosure Schedule contains a complete and accurate list
of all salaried employees of the Acquired Companies as of the date five (5) Business Days prior to
the date of this Agreement, and certain information with respect to such employees, including (i)
date of hire, (ii) position held and (iii) base pay or salary.

(e) To the Knowledge of Seller, since January 1, 2011, (1) the Acquired Companies have been in
compliance in all material respects with all applicable Laws, rules and regulations respecting
employment, employment practices, immigration, occupational health and safety rules, terms and
conditions of employment and wages and hours, in each case, with respect to their current and
former employees, and (2) there have been no group work stoppages, walk outs, labor strikes,
slowdowns or other concerted action against the Acquired Companies and no such activities are
pending or threatened. The Acquired Companies (i) have withheld and reported all material amounts
required by Law or by Contract to be withheld and reported with respect to wages, salaries and
other payments to employees and former employees, (ii) are not liable for any arrears of wages or
any Taxes or any penalty for failure to comply with any of the foregoing, except for any such
liability that would not, individually or in the aggregate, have a Material Adverse Effect, and
(iii) are not liable for any payment to any trust or other fund governed by or maintained by or on
behalf of any Governmental Authority with respect to unemployment compensation benefits, social
security or other benefits or obligations for employees or former employees (other than routine
payments to be made in the ordinary course of business and consistent with past practice). During
the twelve month period prior to the date hereof, the Acquired Companies have not taken any action
that would constitute a mass layoff, mass termination, or plant closing within the meaning of the
WARN Act or otherwise result in material liability under any foreign, federal, state, or local
plant closing or collective dismissal Law.

(f) To the Knowledge of Seller, there are no material claims (except claims for benefits
payable in the normal operation of Employee Plans and proceedings with respect to qualified
domestic relations orders), suits, proceedings or other Actions against or involving any Employee
Plan or asserting any such claims under any such Employee Plan.

 

27

 

(g) All Employee Plans that are intended to be qualified under section 401(a) of the Code have
received determination letters from the IRS to the effect that such Employee Plans are qualified or
entitled to rely on opinion letters issued to a prototype sponsor, and the plans and the trusts
related thereto are exempt from federal income taxes under sections 401(a) and 501(a),
respectively, of the Code; no such determination letter has been revoked and revocation has not
been threatened; and, to the Knowledge of Seller, no act or omission has occurred, that would
reasonably be expected to cause the loss of its tax qualified status.

(h) Except as set forth in Section 4.18(h) of the Disclosure Schedule, there are no
contractual policies or arrangements in effect that require the payment of severance or require the
payment of any bonus.

Section 4.19 Taxes.

(a) Except as set forth in Section 4.19 of the Disclosure Schedule, and except for
matters that would not have a Material Adverse Effect: (i) all Tax Returns required to have been
filed by or with respect to the Acquired Companies have been timely filed (taking into account any
extension of time to file granted or obtained) and such Tax Returns were true, correct and complete
in all material respects; (ii) all Taxes due with respect to the periods covered by such Tax
Returns (whether or not shown on any Tax Return) have been paid when due or will be timely paid;
(iii) no deficiency for any amount of Tax has been asserted or assessed by a Governmental Authority
in writing against any Acquired Company or any consolidated, combined, or unitary group that
includes any Acquired Company that has not been satisfied by payment, settled or withdrawn, and no
Governmental Authority in a jurisdiction where any Acquired Company or any consolidated, combined,
or unitary group that includes any Acquired Company does not file Tax Returns has claimed in
writing that such Acquired Company or such consolidated, combined, or unitary group is or may be
subject to taxation by that jurisdiction; (iv) there is no Tax audit, examination, suit or similar
tax proceeding now in progress, pending or, to the Knowledge of Seller, threatened in writing
against or with respect to any Acquired Company or any consolidated, combined, or unitary group
that includes any Acquired Company; (v) as of the Closing Date, there will be no outstanding
waivers extending the statutory period of limitation relating to the payment of Taxes due from any
Acquired Company; (vi) each Acquired Company has complied in all material respects with the
applicable Laws relating to the withholding of Taxes and the payment thereof; (vii) there are no
Tax liens on any assets of any Acquired Company (other than for Taxes not yet due); (viii) Seller
is not a “foreign person” within the meaning of Section 1445(f)(3) of the Code; (ix) no Acquired
Company has distributed to its stockholders stock of a controlled corporation in a transaction to
which Section 355 of the Code was intended to apply, or has had its stock so distributed, in the
two years prior to the date of this Agreement or in a distribution which could constitute part of a
“plan” or “series of related transactions” (within the meaning of Section 355(e) of the Code) in
conjunction with the transactions contemplated by this Agreement; (x) no Acquired Company has
engaged in a “reportable transaction” as defined in Treasury Regulations Section 1.6011-4(b); (xi)
there are no adjustments under Section 481 of the Code (or any corresponding provision of state,
local or foreign law) that are required to be taken into account by any Acquired Company in any
period ending after the Closing Date by reason of a change in method of accounting in any taxable
period (or portion thereof) ending on or before the Closing Date; and (xii) no Acquired Company
will be required to include any item of income in, or exclude any item of deduction from, taxable
income for any period (or portion thereof) ending after the Closing Date as a result of any (A)
intercompany transaction or excess loss account described in Treasury Regulations under Section
1502 of the Code (or any corresponding provision of state, local or foreign law), (B) closing
agreement described in Section 7121 of the Code (or any corresponding provision of state, local or
foreign law) executed on or before the Closing Date, (C) installment sale or other open transaction
disposition made on or before the Closing Date, (D)  prepaid amount received on or before the
Closing Date, or (E) election under Code Section 108(i).

 

28

 

(b) No Acquired Company has been a member of an affiliated group filing a consolidated federal
income Tax Return other than the Seller Group. The Seller Group has filed an extension of its
consolidated federal income Tax Return with the Acquired Companies for the taxable year immediately
preceding the current taxable year. The Seller Group will file such return in final form, and also
file a final return for the portion of the current year through and including the Closing Date,
each within the time periods (including extensions) provided by applicable Law for such Tax
Returns. None of the Acquired Companies has any liability for the Taxes of any Person other than
the Acquired Companies under Treasury Regulations Section 1.1502-6 (or any similar provision of
state, local, or non-U.S. law), as a transferee or successor, by contract, or otherwise. Except
for any such agreement entered into as a member of the Seller Group (which will be terminated as of
the Closing Date pursuant to Section 7.5), no Acquired Company is a party to or bound by
any Tax allocation or sharing agreement. Except for NNNRA, Triple Net Properties Realty, Inc., and
Grubb & Ellis Residential Management, Inc., each of the Company’s Subsidiaries is treated for
federal income tax purposes as a disregarded entity pursuant to Treasury Regulations Section
301.7701-3.

(c) Seller has delivered to Purchaser correct and complete copies of: (i) pro forma federal
income Tax Returns for 2007, 2008 and 2009, and a book to tax reconciliation relating to the
Acquired Companies for federal income Tax Returns to be filed for 2010, which accurately reflect
Acquired Company Tax items as reported or as are anticipated to be reported on Seller’s
consolidated Tax Returns for such periods, (ii) all state, local and foreign income Tax Returns
that were filed by any Acquired Companies on a separate (non-unitary) basis or on a consolidated,
combined, or unitary basis as a group consisting of only Acquired Companies for 2007, 2008 and
2009, and (iii) a listing of all jurisdictions with respect to which any Acquired Company was
required to file Tax Returns for any state, local, or foreign jurisdiction on a consolidated,
combined, or unitary basis for 2007, 2008, or 2009 (other than any such jurisdiction with respect
to which the separate activities of such Acquired Company would not subject it to taxation by such
jurisdiction).

(d) To the Knowledge of Seller, (i) as of December 31, 2010, the Acquired Companies had in
excess of $75,000,000 in net operating loss carryovers and (ii) none of the net operating loss
carryovers, built-in losses, or credit carryovers of any of the Acquired Companies is currently
subject to any limitation (other than any such limitation arising as a result of the consummation
of the transactions contemplated by this Agreement) under Section 382, 383, or 384 of the Code (or
any corresponding provision of state, local, or foreign law).

Section 4.20 Brokers. No Person (other than FBR Capital Markets & Co. and/or one or
more of its Affiliates) will be entitled to receive any brokerage commission, finder’s fee, fee for
financial advisory services or similar compensation in connection with the transactions
contemplated by this Agreement based on any Contract made by or on behalf of Seller for which
Purchaser or the Company is or could become liable or obligated.

 

29

 

Section 4.21 Intercompany Payments. Set forth on Section 4.21 of the
Disclosure Schedule is a summary of all payments from Seller to any Acquired Company, and from any
Acquired Company to Seller, made from January 1, 2009 through July 29, 2011 and a description, by
category, of the character of such payments.

Section 4.22 Limitation on Warranties.

(a) EXCEPT AS EXPRESSLY SET FORTH IN ARTICLE III OR ARTICLE IV, SELLER MAKES
NO REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, AT LAW OR IN EQUITY, IN RESPECT OF THE SHARES OR
ANY OF THE ACQUIRED COMPANIES OR THE BUSINESS, INCLUDING, WITHOUT LIMITATION, WITH RESPECT TO
ENVIRONMENTAL MATTERS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE. ALL OTHER
REPRESENTATIONS OR WARRANTIES BY SELLER ARE HEREBY DISCLAIMED.

(b) Notwithstanding anything to the contrary in this Agreement (including any provisions of
Section 3.2(a), Section 4.4 and Section 4.13(b) hereof), Seller makes no
representation or warranty of any kind whatsoever with respect to any of the following, including
whether or not the same would result in a Material Adverse Effect, all of which are hereby
expressly disclaimed by Seller: any contravention, conflict, breach, default, Consent requirement,
right of termination, amendment, acceleration, suspension, revocation or cancellation, or
Encumbrance or obligation that may arise (or may have arisen) from, under or with respect to:

(i) the failure to obtain any Consent to any of the Contemplated Transactions (or any prior
transaction of any kind or nature) that may be required (or may have been required) from any
Person, including, without limitation, any joint venture partner, co-owner, lender, master
servicer, special servicer or rating agency, under any Contract (including, without limitation,
guaranties and indemnities or any Contract evidencing Indebtedness) relating to the Owned Real
Property, the Leased Real Property or any other real property in which Seller or any Acquired
Company has an interest or for which Seller or any Acquired Company has an obligation, whether as
owner, landlord, tenant, borrower, joint venture partner, guarantor, member, partner, shareholder,
non-member manager, property manager or otherwise; and

(ii) that certain indenture dated as of August 1, 2006, among NNN Collateralized Senior Notes,
LLC, Triple Net Properties LLC, NNN Series A Holdings, LLC and Wells Fargo Bank, N.A. (the
“NNNCSN Notes Indenture”), including any obligation under Section 4.11 thereof.

 

30

 

ARTICLE V.

REPRESENTATIONS AND WARRANTIES OF PURCHASER

As an inducement to Seller to enter into this Agreement, Purchaser hereby represents and
warrants to Seller as follows:

Section 5.1 Organization and Authority. Purchaser is a limited liability company
validly existing and in good standing under the laws of Delaware, and has all necessary power and
authority to enter into this Agreement and the other Transaction Documents to which Purchaser is a
party, and to carry out its obligations hereunder and thereunder, and to consummate the
Contemplated Transactions. The execution and delivery of this Agreement and the other Transaction
Documents to which Purchaser is a party by Purchaser and the consummation by Purchaser of the
Contemplated Transactions have been duly and validly authorized by all necessary action and no
other proceedings on the part of Purchaser are necessary to authorize this Agreement and the other
Transaction Documents to which Purchaser is a party or to consummate the Contemplated Transactions.
This Agreement and the other Transaction Documents to which Purchaser is a party have been duly
and validly executed and delivered by Purchaser and constitute the legal, valid and binding
obligation of Purchaser, enforceable against Purchaser in accordance with their terms, except as
such enforceability may be subject to the laws of general application relating to bankruptcy,
insolvency, and the relief of debtors and rules of law governing specific performance, injunctive
relief, or other equitable remedies.

Section 5.2 No Conflict; Governmental Authorization.

(a) Neither the execution and delivery of this Agreement and the other Transaction Documents
to which Purchaser is a party nor the consummation of any of the Contemplated Transactions by
Purchaser do or will: (i) contravene, conflict with or result in a violation of any provision of
the limited liability company agreement of Purchaser; (ii) contravene or conflict with or result in
a violation of any Law or any Governmental Order to which Purchaser is subject; (iii) contravene or
conflict with or result in a violation of any of the terms or requirements of any Governmental
Authorization; or (iv) contravene or conflict with, result in any breach of, constitute a default
under, require any Consent under, or give to others any rights of termination, amendment,
acceleration, suspension, revocation or cancellation of, or result in the creation of any
Encumbrance (excluding a Permitted Encumbrance) on any of the Assets of Purchaser pursuant to, any
Contract to which Purchaser is a party, except in the cases of clauses (ii), (iii) and (iv) as
would not have a material adverse effect on the ability of Purchaser to consummate the Contemplated
Transactions.

(b) The execution, delivery and performance of this Agreement and the other Transaction
Documents to which Purchaser is a party and the consummation of the Contemplated Transactions by
Purchaser do not and will not require any Governmental Authorization or other order of, action by,
filing with or notification to any Governmental Authority, including pursuant to the
Hart-Scott-Rodino Antitrust Improvements Act of 1976.

 

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Section 5.3 Private Placement.

(a) Purchaser understands that (i) the offering and sale of the Shares under this Agreement is
intended to be exempt from the registration requirements of the Securities Act and (ii) there is no
existing public or other market for the Shares and there can be no assurance that Purchaser will be
able to sell or dispose of the Shares.

(b) Purchaser is acquiring the Shares for its own account solely for the purpose of investment
and not with a view to, or for offer or sale in connection with, any distribution thereof.

(c) Purchaser is an “accredited investor” as such term is defined in Regulation D promulgated
under the Securities Act.

(d) Purchaser understands that it may not sell or dispose of any of the Shares other than
pursuant to a registered offering, unless such sale or disposition is otherwise exempt from the
registration requirements of the Securities Act.

Section 5.4 Investigation.

(a) Purchaser understands that Seller is not making, and Purchaser is not relying on, any
representation or warranty (express or implied or at Law or in equity) with respect to the Business
or the operations, Assets, Liabilities, prospects or financial condition of the Acquired Companies
or otherwise, other than as specifically set forth in this Agreement.

(b) Purchaser has sufficient Knowledge and experience in financial and business matters so as
to be capable of evaluating the merits and risks of its investment in the Shares, and Purchaser is
capable of bearing the economic risks of such investment, including a complete loss of its
investment in the Shares. In connection with Purchaser’s investigation of the Acquired Companies
and the Business, Purchaser has received from Seller and the Acquired Companies certain estimates,
projections, forecasts, plans and budgets for the Business. Purchaser (i) understands that there
are uncertainties inherent in attempting to make such projections, forecasts, plans and budgets,
(ii) is familiar with such uncertainties, (iii) is taking full responsibility for making its own
evaluation of the adequacy and accuracy of all estimates, projections, forecasts, plans and budgets
furnished to it, and (iv) will not assert any claim against Seller or any of its respective
directors, officers, employees, agents, stockholders, Affiliates, consultants, counsel,
accountants, investment bankers or representatives, or hold Seller or any such other persons
liable, with respect to such estimates, projections, forecasts, plans and budgets; provided
that nothing in this Section 5.4(b) shall limit or qualify any representation or warranty
of Seller specifically set forth in this Agreement.

Section 5.5 Financing. Purchaser has funds sufficient to consummate the Contemplated
Transactions that are to be completed on the Closing Date.

Section 5.6 Litigation. There are no Actions by or against Purchaser pending before,
or, to the Knowledge of Purchaser, threatened to be brought before, any Governmental Authority by
any third party that seeks to delay or prevent the consummation of, or that would materially
adversely affect Purchaser’s ability to consummate, the Contemplated Transactions.

 

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Section 5.7 Brokers. No Person will be entitled to receive any brokerage commission,
finder’s fee, fee for financial advisory services or similar compensation in connection with the
transactions contemplated by this Agreement based on any Contract made by or on behalf of Purchaser
for which Seller or the Company is or could become liable or obligated.

ARTICLE VI.

ADDITIONAL AGREEMENTS

Section 6.1 Conveyance Taxes. All transfer, documentary, sales, use, registration,
stock transfer and stamp Taxes, any transfer, conveyance recording, registration and other fees,
and any similar Taxes and fees which become payable in connection with the sale and purchase of the
Shares pursuant to this Agreement or the Contemplated Transactions (“Transfer Taxes”) shall
be paid 50% by Seller and 50% by Purchaser. Seller shall timely file all Tax Returns and other
documentation with respect to all such Transfer Taxes required by applicable law.

Section 6.2 Further Action. Each of the Parties hereto shall use commercially
reasonable efforts to take, or cause to be taken, all appropriate action, do or cause to be done
all things necessary, proper or advisable under applicable Law, and execute and deliver such
documents and other papers, as may reasonably be required to carry out the provisions of this
Agreement and consummate and make effective the Contemplated Transactions, and to vest in Purchaser
good and valid title to the Shares.

Section 6.3 Wrong Pocket Assets.

(a) After the Closing, Purchaser shall use commercially reasonable efforts to hold in trust
for the benefit of Seller any assets of the Acquired Companies which prior to Closing related
exclusively to the business of Seller and its Subsidiaries (other than the business of the Acquired
Companies) and shall use commercially reasonable efforts to transfer such assets as soon as
reasonably practicable (upon Purchaser becoming aware of its or the Acquired Companies’ possession
of such assets) to Seller without consideration, all of which transfers shall be deemed to be
effective as of the Closing. All costs and expenses of such transfer (if incurred by Seller) shall
be borne by Seller, and the reasonable out-of-pocket costs and expenses of such transfer (if
incurred by an Acquired Company) shall be borne by Seller. If any such assets were from time to
time used in connection with the business of the Acquired Companies, at the request of Purchaser,
Seller shall, or cause its Subsidiaries to, make commercially reasonable arrangements to permit the
Acquired Companies to use such assets at no cost to the Acquired Companies.

(b) Seller shall use commercially reasonable efforts to hold in trust for the benefit of the
Acquired Companies any assets of Seller and its Subsidiaries (other than the Acquired Companies)
which prior to Closing related exclusively to the business of the Acquired Companies, and shall use
commercially reasonable efforts to transfer such assets as soon as reasonably practicable (upon
Seller becoming aware of its or its subsidiaries’ possession of such assets) to Purchaser without
consideration, all of which transfers shall be deemed to be effective as of the Closing. All costs
and expenses of such transfer (if incurred by Seller) shall be borne by Seller, and the reasonable
out-of-pocket costs and expenses of such transfer (if incurred by an Acquired Company) shall be
borne by Seller. If any such assets were from time to time used in connection with the business of
Seller and its Subsidiaries (other than the Acquired Companies), at the request of Seller,
Purchaser shall, or cause its Subsidiaries to, make commercially reasonable arrangements to permit
Seller and its Subsidiaries to use such assets at no cost to Seller and its Subsidiaries.

 

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Section 6.4 Use of Seller’s Name.

(a) Within ninety (90) Business Days after the Closing, Purchaser shall:

(i) remove any trademark, design or logo previously or currently used by Seller that uses or
incorporates the name “Grubb & Ellis” or any confusingly similar derivations thereof (together with
the name “Grubb & Ellis” and such derivations, the “Seller Marks”) from all buildings,
signs and vehicles of Purchaser and each Acquired Company; and

(ii) cease using the Seller Marks in electronic databases, web sites, product instructions,
packaging and other materials, printed or otherwise (all such materials, together with buildings,
signs and vehicles, the “Marked Assets”).

(b) Within twenty (20) Business Days after the Closing, Purchaser shall (i) amend the charter
or other governing documents to change the name of each of the Acquired Companies to omit any
reference to the name “Grubb & Ellis” or any confusingly similar derivations thereof and (ii) cease
using the Seller Marks in all invoices, letterhead, advertising and promotional materials, office
forms and business cards.

(c) From and after the Closing, Purchaser shall use its best efforts to remove the Seller
Marks from all Assets of the Acquired Companies (including all Marked Assets); provided
that in no event shall Purchaser use the Seller Marks after the ninetieth (90th) Business Day
after the Closing Date.

(d) Purchaser acknowledges and agrees that Seller or its Affiliates (excluding any Acquired
Company) own the Seller Marks and all goodwill attached thereto. This Agreement does not give
Purchaser the right to use the Seller Marks except as expressly contemplated by, and in accordance
with, this Agreement. Purchaser agrees not to attempt to register the Seller Marks nor to register
anywhere in the world a mark the same as or similar to the Seller Marks.

(e) In no event shall Purchaser advertise or hold itself out as Seller (or an Affiliate of
Seller or otherwise associated with Seller) after the Closing Date.

(f) For purposes of this Section 6.4, references to “Seller” shall mean Seller,
together with its Subsidiaries (other than the Acquired Companies), and references to “Purchaser”
shall mean Purchaser, together with its Subsidiaries (including, without limitation, the Acquired
Companies).

Section 6.5 Non-Compete. During the Restricted Term, Seller agrees that, without the
prior written consent of Purchaser, it will not, and will cause each of its Subsidiaries not to,
directly or indirectly, participate in, solicit participation in, request to be engaged in, or
consent to such participation or engagement proposed by any third party in the Covered Business
with respect to any property with respect to which any Acquired Company is engaged, or is in
discussions as of immediately prior to the Closing with the owner (or owners) or current manager of
such property to become engaged, in the Covered Business as of the Closing.

 

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Section 6.6 Non-Solicitation.

(a) During the Restricted Term, Seller shall not, and shall cause each of its Subsidiaries not
to, directly or indirectly, hire or solicit to hire any officer or employee of any Acquired Company
who was employed by any Acquired Company as of the Closing Date or who was employed by any Acquired
Company within six months prior to the Closing Date (unless such person’s employment with the
Acquired Company was terminated by the Acquired Company without cause); provided that
nothing in this Section 6.6 shall restrict or otherwise limit Seller or any of its
Subsidiaries from (a) soliciting to hire any such person pursuant to general solicitations not
directed toward soliciting such person or (b) hiring or soliciting to hire any such person if such
person’s employment with any Acquired Company ceased more than six months prior to such hiring or
solicitation to hire.

(b) During the Restricted Term, Purchaser shall not, and shall cause each of its Subsidiaries,
including each Acquired Company, not to, directly or indirectly, hire or solicit to hire any
officer or employee of Seller or any of its Subsidiaries (other than any Acquired Company) who was
employed by Seller or any of its Subsidiaries as of the Closing Date (unless such person’s
employment with Seller or any of its Subsidiaries was terminated by Seller or such Subsidiary
without cause); provided that nothing in this Section 6.6 shall restrict or
otherwise limit Purchaser or any of its Subsidiaries from (a) soliciting to hire any such person
pursuant to general solicitations not directed toward soliciting such person or (b) hiring or
soliciting to hire any such person if such person’s employment with Seller or any of its
Subsidiaries ceased more than six months prior to such hiring or solicitation to hire.

Section 6.7 Cooperation; Records and Documents.

(a) In the event and for so long as any Party and/or its Subsidiaries is actively contesting
or defending any Action in connection with (i) the Contemplated Transactions or (ii) any fact,
situation, circumstance, status, condition, activity, practice, plan, occurrence, event, incident,
action, failure to act or transaction on or prior to the Closing Date involving the Business,
including liabilities or obligations related to the Business retained by Seller, or the Acquired
Companies, the other Parties shall cooperate (or cause its Subsidiaries to cooperate) with the
contesting or defending Party and its counsel in the contest or defense, make available its
personnel and provide such testimony and access to its books and records as may be reasonably
necessary in connection with the contest or defense, at the sole cost and expense of the contesting
or defending party (unless the contesting or defending party is entitled to indemnification under
Article VIII, in which case the costs and expenses will be borne by the Parties as set
forth in Article VIII). The provisions of this Section 6.7(a) shall not be
applicable in the case of any Action by one Party (or any of its Subsidiaries) against another
Party (or any of its Subsidiaries).

 

35

 

(b) Following the Closing Date, Purchaser shall grant, and shall cause the Acquired Companies
to grant, to Seller and its representatives, at Seller’s reasonable request, access during normal
business hours and under reasonable circumstances to, and the right to make copies at Seller’s sole
expense of, those records and documents covering or relating to any period prior to the Closing
related to the Business, including liabilities or obligations related to the Business retained by
Seller, or any Acquired Company, and shall make available its personnel and provide such testimony,
each as may be reasonably necessary for litigation, preparation of financial statements, Tax
returns and audits or other valid business purposes. If Purchaser elects to dispose of any of
such records within six (6) years after the Closing Date, Purchaser shall first give Seller sixty
(60) days written notice, during which period Seller shall have the right to take such records
without payment of consideration.

(c) Following the Closing Date, Seller shall grant, and shall cause its Subsidiaries to grant,
to Purchaser and its representatives, at Purchaser’s reasonable request, access during normal
business hours and under reasonable circumstances to, and the right to make copies at Purchaser’s
sole expense of, those records and documents (excluding privileged records and documents that were
prepared for the exclusive benefit of Seller or any of its Subsidiaries other than the Acquired
Companies) covering or relating to any period prior to the Closing related to the Business, and
shall make available Seller’s personnel and provide such testimony, each as may be reasonably
necessary for litigation, preparation of financial statements, Tax returns and audits or other
valid business purposes. If Seller elects to dispose of any of such records within six (6) years
after the Closing Date, Seller shall first give Purchaser sixty (60) days written notice, during
which period Seller shall have the right to take such records without payment of consideration.

Section 6.8 Guaranteed Obligations.

(a) From and after the Closing, Purchaser will cause each Acquired Company to fully perform
and observe all of the obligations required to be performed and observed by such Acquired Company
under each agreement, instrument, letter of credit or other obligation with respect to which Seller
or any of its Affiliates after the Closing remains obligated after the Closing as a guarantor,
indemnifying party or other obligor and that is set forth in Section 6.8 of the Disclosure
Schedule (collectively, the “Guaranteed Obligations”). Purchaser shall not permit any of
the Acquired Companies or any of their successors to (i) amend or modify the terms of any such
Guaranteed Obligation or related agreement, instrument, letter of credit or other arrangement for
which Seller or any of its Affiliates remains directly or indirectly obligated after the Closing in
any manner that increases the amount, scope or duration (or causes an acceleration) of the
obligations or responsibility of Seller or its Affiliates thereunder, (ii) exercise any right to,
or agree to, extend the terms of such Guaranteed Obligation or related agreement, instrument,
letter of credit or other arrangement in any manner that increases the amount, scope or duration
(or causes an acceleration) of the obligations or responsibility of Seller or its Affiliates
thereunder or (iii) take any action or fail to take any action if such action or failure to act
would, or could reasonably expected to, result in the increase or acceleration of the Guaranteed
Obligations.

 

36

 

(b) Purchaser shall provide, and shall cause the Acquired Companies to provide, Seller with
prompt notice (and information reasonably requested by Seller) of any claim or action (including
any proposed action or settlement proposed to be taken by the Company and its Subsidiaries) or
other development, fact or circumstance, or combination thereof, that could reasonably be expected
to result in a compulsory payment by Seller of any Guaranteed Obligations and Seller shall be
entitled to obtain reasonable assurances from Purchaser with respect thereto. In furtherance and
without limitation of the foregoing, Purchaser shall keep Seller reasonably and promptly informed
(and the Purchaser and Seller shall cooperate) regarding the status of any such claim, action,
development, fact or circumstance. Notwithstanding anything herein to the contrary, in the absence
of such assurances that are reasonably satisfactory to Seller, Seller shall be entitled to assume
control over the resolution of the claim or action, and Purchaser shall be responsible for all
reasonable expenses (including attorneys fees) incurred by Seller in the resolution of such claims.
Purchaser shall give, and shall cause the Company and its Subsidiaries to give, Seller and its
representatives reasonable access, during normal business hours and upon reasonable notice, to the
books and records, the financial systems and personnel and any other information of the Business
that Seller reasonably requests, with respect to the Guaranteed Obligations.

Section 6.9 Directors’ and Officers’ Indemnification. Any rights to indemnification
existing in favor of directors, officers, members, managers or employees (the “Indemnified
Representatives”) of the Acquired Companies as provided in the respective charters, by-laws and
other organizational and constitutive documents of the Acquired Companies, as in effect on the date
hereof, with respect to matters occurring through the Closing Date, will survive the Contemplated
Transactions and Purchaser shall cause the Acquired Companies to take actions to ensure that such
rights will continue in full force and effect for a period of six (6) years thereafter. This
Section 6.9 is intended to be for the benefit of, and shall be enforceable by, the
Indemnified Representatives, their heirs and personal representatives and shall be binding on
Purchaser and its successors and assigns.

Section 6.10 Payment of Broker’s Fees. Seller shall pay all amounts (including
brokerage commissions, finder’s fees and similar compensation) payable to FBR Capital Markets & Co.
incurred in connection with the Contemplated Transactions.

Section 6.11 Employee and Employee Benefit Matters.

(a) Immediately prior to the Closing, Seller transferred those employees of Seller (or any
Subsidiary of Seller other than the Acquired Companies) listed on Section 6.11 of the
Disclosure Schedule (the “Transferred Employees”) to the Acquired Company designated as the
employer of such Transferred Employee on Section 6.11 of the Disclosure Schedule. Unless
required by Law to be paid out at the time such employees ceased to be employed by Seller (or any
Subsidiary of Seller other than the Acquired Companies), Purchaser shall cause the accrued and
unused vacation time (PTO) of each Transferred Employee to be credited to such employee by the
transferee employer of such employee (the applicable Acquired Company) (the “Transferee
Employer”).

(b) Following the Closing, Purchaser shall ensure that all employees of any Acquired Company
retain credit for any service with the Acquired Companies and Seller, as applicable, earned prior
to the Closing for eligibility, vesting and benefit accrual purposes (other than with respect to
benefit accruals under a defined benefit pension plan) under the Transferee Employer’s employee
benefit plans, programs and arrangements, as applicable, other than any defined benefit pension
plan, as to which the Purchaser shall have no responsibility.

 

37

 

(c) Employees of the Acquired Companies (“Acquired Company Employees”) shall cease
active participation in the employee benefit plans, policies and arrangements of Seller as of the
Closing, provided that, certain health and welfare Employee Plans sponsored by Seller, as set forth
in Section 6.11(c) of the Disclosure Schedule, will continue to provide coverage to the
Acquired Company Employees through the end of the month in which the Closing occurs, in accordance
with their terms. Purchaser shall, or shall cause the Acquired Companies to, adopt such employee
benefit plans, including medical, health, dental, flexible spending account, accident, life,
short-term disability, and long-term disability and other employee welfare benefit plans for the
benefit of the Acquired Company Employees as Purchaser shall determine from time to time in its
sole discretion (the “Purchaser Welfare Plans”). Any restrictions on coverage for
pre-existing conditions or requirements for evidence of insurability under the Purchaser Welfare
Plans shall be waived for Acquired Company Employees and Acquired Company Employees shall receive
credit under the Purchaser Welfare Plans for co-payments and payments under a deductible limit made
by them and for out-of-pocket maximums applicable to them during the plan year of the Seller
Welfare Plan in accordance with the corresponding Seller Welfare Plans, all consistent with the
terms of any applicable contracts providing such benefits. Purchaser shall use its commercially
reasonable efforts to achieve the goals of the preceding sentence. Promptly after the Closing
Date, Seller shall deliver to Purchaser a list of the Company Employees who had credited service
under a Seller Benefit Plan, together with each such Transferred Employee’s service, co-payment
amounts and deductible and out-of-pocket limits under such plan.

(d) Provided Purchaser or an Affiliate of Purchaser maintains such plans and as of the Closing
Date, (x) the account balances of the Acquired Company Employees with respect to the plan year in
which the Closing Date occurs (whether positive or negative) (the “Transferred Account
Balances”) under Seller’s health care, dependent care and commuter and parking spending
reimbursement plans (the “Seller FSA Plans”) shall be transferred to one or more comparable
plans of Purchaser (the “Purchaser FSA Plans”); (y) the election levels and the coverage
levels of the Acquired Company Employees shall apply under the Purchaser FSA Plans in the same
manner as under the Seller FSA Plans; and (z) the Acquired Company Employees shall be reimbursed
from the Purchaser FSA Plans for claims incurred at any time during the plan year of the Seller FSA
Plans in which the Closing Date occurs submitted to the Purchaser FSA Plans from and after the
Closing Date on the same basis and the same terms and conditions as under the Seller FSA Plans.
Promptly after the Closing Date, and in any event within thirty (30) days of the Closing Date,
Seller shall pay Purchaser, in cash, the net aggregate amount of the Transferred Account Balances,
if such amount is positive, and Purchaser shall pay Seller, in cash, the net aggregate amount of
the Transferred Account Balances, if such amount is negative, in each case based on claims
submitted and reimbursed as of the Closing Date.

(e) During the period beginning on the Closing Date and ending on the sixtieth
(60th) day after the Closing Date (the “Employment Termination Cooperation
Period”), Purchaser shall, and shall cause all applicable Acquired Companies to: (i) before
terminating any employee of an Acquired Company during the Employment Termination Cooperation
Period, notify Seller of the Acquired Company’s plan to terminate such employee at least five (5)
Business Days prior to terminating such employee and (ii) consult with Seller about the termination
message to be communicated to such employee and allow Seller (if Seller desires) to participate in
the communication of the termination message to such employee.

 

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(f) 

Seller shall consult with Purchaser, and Purchaser shall (and shall cause each Acquired Company to) consult
with Seller, regarding their respective views regarding the amount of severance payments required to be paid by an
Acquired Company to each particular Promptly Terminated Employee pursuant to the terms (as in effect immediately prior
to the Closing) of any employment agreement or employment offer letter applicable to such Promptly Terminated Employee
that was in force and effect immediately before the Closing or any applicable Employee Plan maintained by an Acquired
Company that was in force and effect immediately before the Closing. In the event that, after the Closing, Seller (i)
agrees in writing with Purchaser or any Acquired Company regarding the amount of severance payments to which a
particular Promptly Terminated Employee is entitled to receive pursuant to the terms (as in effect immediately prior to
the Closing) of any employment agreement or employment offer letter applicable to such Promptly Terminated Employee
that was in force and effect immediately before the Closing or any applicable Employee Plan maintained by an Acquired
Company that was in force and effect immediately before the Closing or (ii) otherwise agrees in writing with Purchaser
or any Acquired Company regarding the amount of severance payments to be paid to a particular Promptly Terminated
Employee (regardless of any agreement or Employee Plan dictating the amount of such severance payment), then such
agreed amount of severance payment payable to such Promptly Terminated Employee shall be subject to indemnification
under Section 8.2(a)(v). In the event that, after the Closing, Seller disagrees with Purchaser or any Acquired
Company regarding the amount of severance payments to which a particular Promptly Terminated Employee is entitled to
receive, then if: (A) Purchaser or any Acquired Company pays such Promptly Terminated Employee an amount of severance
payment greater than what Seller agreed was the appropriate amount of severance payment for such Promptly Terminated
Employee, the lesser severance payment amount agreed to by Seller shall immediately be subject to indemnification under
Section 8.2(a)(v) and the Purchaser or any Acquired Company may challenge Seller’s denial of the difference in
the severance payment amount (it being understood that if it is ultimately determined that the amount of severance
payment paid by Purchaser or any Acquired Company was the proper amount, Seller shall indemnify Purchaser or any
Acquired Company for such disputed amount pursuant to Section 8.2(a)(v)); and (B) Purchaser or any Acquired
Company does not pay any severance payment to such Promptly Terminated Employee because of the disagreement with
Seller, Seller shall indemnify Purchaser or any Acquired Company for the full amount of any severance payment that is
ultimately determined to be required to be paid to such Promptly Terminated Employee, pursuant to any action related to
the same or otherwise. For the avoidance of doubt, in the event that, after the Closing, (x) Purchaser, any Acquired
Company or any other Purchaser Indemnified Person pays, agrees to pay or admits that it is required to pay any
severance payments to any Promptly Terminated Employee and (y) Seller has not agreed (as provided in the second
sentence of this Section 6.11(f)) to the amount of such severance payment, then Seller shall be fully entitled to
dispute or otherwise challenge any claim by any Purchaser Indemnified Person for indemnification under Section
8.2(a)(v) with respect to such disputed amount (but not with respect to the amount of severance payment that it
does agree to).

Section 6.12 Restrictions on Exercise of Rights as a Holder of Notes. During the
Restricted Term/Notes, without the prior written consent of Seller, Purchaser shall not (and
Purchaser shall cause each of its Affiliates and each other Person in which the Purchaser or one of
its Affiliates has made an investment, not to) take any action, give any notice or exercise any
other right (acting alone or together with any other person or entity) that would result in (or
assert) a default, event of default, acceleration or collection action under the NNNCSN Notes
Indenture, including by taking any action, giving any notice or exercising any other right
Purchaser or such other Person may have as a “Holder” of any notes issued under the NNNCSN Notes
Indenture with respect to any of the following provisions contained in the NNNCSN Notes Indenture:
(i) Section 6.01 thereof, (ii) the first two sentences of Section 6.02 thereof, (iii) Section 6.05
thereof and (iv) Section 6.06 thereof. During the Restricted Term/Notes, in furtherance of the
preceding, Purchaser shall not take any action (or fail to take any action) with respect to the
NNNCSN Notes Indenture if such action (or failure to take action) would materially and adversely
affect Seller.

Section 6.13 Restricted Payments to Purchaser. During the Restricted Term, Purchaser
shall not permit any of the Acquired Companies to, directly or indirectly, (a) declare or pay any
dividend or make any other payment or distribution on account of the Acquired Companies’ equity
interests or to the direct or indirect holders of the Acquired Companies’ equity interests in their
capacity as such (other than dividends or other payments or distributions from one Acquired Company
to another Acquired Company); or (b) purchase, redeem or otherwise acquire or retire for value any
of the Acquired Companies’ equity interests (other than purchases, redemptions or other
acquisitions or retirements for value by any Acquired Company from another Acquired Company).

Section 6.14 Alesco Earn Out Payment. If NNNRA or any of its Affiliates receives any
Alesco Earn Out Payment, notwithstanding the assignment of all its and their rights in and to all
Alesco Earn Out Payments to Seller pursuant to the Company Bill of Sale, Purchaser or NNNRA shall
thereupon pay an amount in cash equal to the Alesco Earn Out Payment to Seller, by wire transfer of
immediately available funds, within three (3) Business Days of the receipt of the Alesco Earn Out
Payment by NNNRA or any of its Affiliates.

 

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Section 6.15 Met 10 Litigation.

(a) Concurrently with a Met 10 Trigger Event, Seller shall pay in cash, by wire transfer of
immediately available funds, an amount equal to the Met 10 Subsequent Payment Amount to the Persons
entitled thereto. Purchaser shall immediately forward to Seller by facsimile any communications
received by GERI relating to a Met 10 Trigger Event and/or a Met 10 Subsequent Payment. In the
event of a dispute regarding the calculation of the Met 10 Subsequent Payment Amount, Purchaser
shall ensure that GERI reasonably cooperates with Seller with respect to that dispute. Any payment
by Seller pursuant to this Section 6.15(a) will be deemed to be an additional payment in
satisfaction of a portion of the Net Balance. For the avoidance of doubt, no payment by Seller
pursuant to this Section 6.15(a) will reduce the principal amount of the Seller Term Note
or reduce or offset the Seller Closing Net Balance Payment.

(b) Purchaser shall cause GERI to refrain from amending the Met 10 Settlement Agreement
without the prior written consent of Seller.

(c) From and after the Closing, Purchaser will cause each Acquired Company to act as expressly
directed by Seller with respect to any of the obligations required to be performed and observed by
such Acquired Company under each agreement, instrument, letter of credit or other obligation with
respect to Met Center 10 (collectively, the “Met 10 Obligations”), and to refrain from
acting with respect to any of the Met 10 Obligations unless expressly instructed to act by Seller;
provided that such request to act (or refrain from acting) is commercially reasonable, taking into
account the indemnity obligations of Seller pursuant to Section 8.2(a)(iv).

(d) Purchaser shall provide, and shall cause the Acquired Companies to provide, Seller with
prompt notice (and information reasonably requested by Seller) of any claim, demand, or notice
relating to any Met 10 Obligation, or any event, action, development, fact, or circumstance, or
combination thereof, that reasonably could be anticipated to result in a claim, demand, payment or
obligation with respect to any Met 10 Obligation. Seller shall be entitled to assume control over
the resolution of any Met 10 Obligation. Purchaser shall give, and shall cause the Company and its
Subsidiaries to give, Seller and its representatives reasonable access to the books and records,
the financial systems and personnel and any other information of the Business that Seller
reasonably requests, with respect to the Met 10 Obligations. Purchaser shall provide, and shall
cause the Acquired Companies to provide, Seller with reasonable cooperation with respect to the Met
10 Obligations and with respect to Seller’s actions relating to any Met 10 Obligations.

(e) From and after the Closing, Purchaser shall, and shall cause the Acquired Companies to,
pay the first $650,000 of Unpaid Met 10 Legal Expenses. From and after the Closing, Seller shall
pay any Unpaid Met 10 Legal Expenses to the extent (and only to the extent) that the aggregate
amount of such Unpaid Met 10 Legal Expenses exceeds $650,000.

 

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Section 6.16 Efforts to Bifurcate the HQ Lease. Seller shall, and Purchaser shall
cause GERI and the other Acquired Companies to, cooperate and use commercially reasonable efforts
to enter into separate lease agreements (or enter into one new lease agreement and amend the
existing HQ Lease) with the landlord under the HQ Lease, such that Seller or one of its
Subsidiaries, on the one hand, and GERI or one of the other Acquired Companies, on the other hand,
will each lease directly from the landlord under the HQ Lease a portion of the premises that are
the subject of the HQ Lease (the “New Lease Agreements”).  With respect to the New Lease
Agreement for Seller or one of its Subsidiaries, it is agreed that the allocation of the premises
under such New Lease Agreement and the economic terms of such New Lease Agreement will be
consistent with the respective terms of the HQ Sublease; with respect to the New Lease Agreement
for GERI or one of the other Acquired Companies, it is agreed that the allocation of the premises
under such New Lease Agreement and the economic terms of such New Lease Agreement will be
consistent with the respective terms of the HQ Lease, taking into account the HQ Sublease.  Seller
shall, and Purchaser shall cause GERI and the other Acquired Companies to, cooperate and use
commercially reasonable efforts to achieve the agreements set forth in the preceding sentence.
Seller and its Subsidiaries and the Purchaser and the Acquired Companies shall each bear their own
costs and expenses in connection with performing under this Section.

Section 6.17 Efforts to Release Utility Bond Guarantees. Purchaser shall cause the
Acquired Companies to (within 60 days after the Closing) negotiate the release of Seller and each
of its Affiliates from all obligations as a guarantor, indemnifying party or other obligor under
the utility bonds set forth on Section 6.17 of the Disclosure Schedule.

Section 6.18 Broker Cooperation. For a period not to exceed 90 days after the Closing
Date, Seller agrees that, in the event that any employee of Seller who, as of immediately prior to
the Closing, served as the sole “broker of record” for any Acquired Company in any particular state
in order to enable such Acquired Company to provide asset and/or property management services in
such state is not, at any time during such period after the Closing, an employee of any Acquired
Company, Seller will use commercially reasonable efforts to cause such person, while an employee of
Seller, to continue to serve, at the request of the Company, as the “broker of record” for such
Acquired Company in such state. In the event that any employee of Seller serves as a “broker of
record” for any Acquired Company in accordance with the preceding sentence, Purchaser will use
commercially reasonable efforts to institute a replacement “broker of record” for such Acquired
Company in such state as promptly as practicable.

ARTICLE VII.

TAX MATTERS

Section 7.1 Tax Coordination.

(a) In the case of any Taxes with respect to any Straddle Period (the “Straddle Period
Taxes”):

(i) For Straddle Period Taxes of any Acquired Company that are either (A) based upon or
related to income or receipts, or (B) imposed in connection with any sale or other transfer or
assignment of property (real or personal, tangible or intangible) other than conveyances pursuant
to this Agreement as provided under Section 6.1, Seller shall be responsible for and shall
pay the amount of such Taxes that would be payable if the Tax year or period ended on the Closing
Date.

 

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(ii) For Straddle Period Taxes of any Acquired Company measured by the amount or level of any
item (including, but not limited to, such Taxes as are measured by the amount of capital or the
value of intangibles), Seller shall be responsible for and shall pay the amount of such Taxes that
are determined by multiplying (A) the amount or level of such items immediately prior to Closing,
by (B) a fraction, the numerator of which is the number of calendar days in the portion of the
Straddle Period ending on the Closing Date and the denominator of which is the number of calendar
days in the entire Straddle Period.

(iii) Purchaser shall be responsible for and shall pay all Straddle Period Taxes of any
Acquired Company not described in Section 7.1(a)(i) and Section 7.1(a)(ii).

(b) Seller shall be responsible for and shall pay all Taxes of the Acquired Companies for all
Pre-Closing Periods.

(c) Seller and Purchaser shall, to the extent permitted by applicable Law and except as
otherwise provided herein, elect with the relevant Governmental Authority to close the taxable
period of each of the Acquired Companies (including any Affiliated Group of which any of the
Acquired Companies is a member) at the end of the day on the Closing Date. No election shall be
made under Regulations section 1.1502-76(b)(2)(ii) (relating to ratable allocation of a year’s
items) or any comparable provision of state, local, or foreign law. To the extent the satisfaction
of the Net Balance at less than the face amount thereof results in any deduction or write-off for
any Acquired Company, Seller and Purchaser agree to report such event as occurring on the Closing
Date after Purchaser’s purchase of the Company Shares, and therefore as being reported on the
federal income Tax Return for such Acquired Company for its taxable period beginning on the day
after the Closing Date to the extent permitted by Treasury Regulations Section
1.1502-76(b)(1)(ii)(B).

(d) Except as otherwise provided by the last sentence of Section 7.1(c), Seller shall
include the income of the Acquired Companies (including any deferred items triggered into income by
Treasury Regulations Section 1.1502-13 and any excess loss accounts taken into income under
Treasury Regulations Section 1.1502-19) on the Seller Group’s consolidated federal income Tax
Returns for all periods through the Closing Date and pay any federal income Taxes attributable to
such income. Seller shall not elect to retain any net operating loss carryovers or capital loss
carryovers of any Acquired Company. In the event that, prior to the date that any election under
Treasury Regulations Section 1.1502-95(f) with respect to the consummation of the transactions
contemplated by this Agreement is required to be filed, it is determined that any portion of the
net operating loss carryovers, built-in losses, or credit carryovers of any of the Acquired
Companies is subject to an existing limitation (other than any such limitation arising as a result
of the consummation of the transactions contemplated by this Agreement) under Section 382, 282 or
384 of the Code (or any corresponding provision of state, local, or foreign law), Seller shall
cause to be timely filed an election under such section to apportion an appropriate amount of any
applicable Section 382 limitation, unrealized built-in gain, or unrealized built-in loss to
eliminate or to reduce to the extent possible the effect of such existing limitation. Seller and
Purchaser shall cooperate in good faith with each other to determine the appropriate amount of such
apportionment pursuant to the immediately preceding sentence.

 

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(e) If requested in writing by Purchaser prior to December 31, 2011 and consented to by Seller
(such consent not to be unreasonably withheld or delayed), Seller will join with Purchaser in
making an election under Section 338(h)(10) of the Code (and any corresponding election under
state, local or foreign law) with respect to the purchase and sale of the Shares hereunder and/or
any resulting deemed purchase of the equity of any of the Subsidiaries of the Company (the
“Section 338(h)(10) Election”). Purchaser and Seller agree that, if a Section 338(h)(10)
Election is made, the aggregate deemed sales price (within the meaning of Treasury Regulations
Section 1.338-4) and the amount of the adjusted grossed-up basis (within the meaning of Treasury
Regulations §1.338-5) with respect to any such election shall be allocated among the assets of the
relevant Acquired Companies in a manner consistent with Code Section 338 and 1060 and the
regulations thereunder, as agreed to in good faith by Purchaser and Seller. Purchaser shall
prepare IRS Form 8023 (and any required attachments thereto) and any similar state, local or
foreign Tax forms (and any required attachments) required to make the Section 338(h)(10) Election
consistently with the above-referenced asset allocation and shall submit such election forms to
Seller for execution and return to Purchaser for filing not later than five (5) days prior to the
proposed filing date of the Section 338(h)(10) Election.

(f) Neither Purchaser nor any Affiliate of Purchaser shall amend, re-file or otherwise modify,
or cause or permit any Acquired Company to amend, re-file or otherwise modify, any Tax Return with
respect to a Pre-Closing Period (including the portion of a Straddle Period that falls within the
Pre-Closing Period) without the prior written consent of Seller, which shall not be unreasonably
conditioned, withheld or delayed.

Section 7.2 Tax Return Filing and Payment of Taxes.

(a) Purchaser’s Responsibility. Except as set forth in Section 7.2(b),
Purchaser shall prepare and file all Straddle Period Tax Returns relating to the Acquired Companies
for Tax periods ending after the Closing Date. Purchaser shall initially make all payments required
with respect to any such Tax Return. Purchaser will file or cause to be filed all such Tax Returns
that are in respect of Straddle Period Taxes consistent with past practice and the provisions of
Section 7.1. Purchaser shall deliver a draft of each such Tax Return to Seller at least
forty-five (45) days prior to the due date (including extensions thereof) for such return for its
review and comment, and shall make such revisions to such returns as are reasonably requested by
Seller. If Seller does not provide Purchaser with a written description of the items in any such
return that it disputes within fifteen (15) days following the delivery to it of such return for
its review, it shall be deemed to have accepted and agreed to such return in the form provided.

(b) Seller’s Responsibility. Seller shall prepare and file all Tax Returns relating
to any of the Acquired Companies for Tax periods ending on or prior to the Closing Date, and any
Affiliated Group Tax Return for any Straddle Period. Seller shall initially make all payments
required with respect to any such Tax Return. Seller will file or cause to be filed all such Tax
Returns consistent with past practice and the provisions of Section 7.1 and take no
position on any amended Tax Returns that relate to the Acquired Companies that would adversely
affect the Acquired Companies after the Closing Date. Seller shall deliver a draft of each such
Tax Return (in the case of any such Tax Return which is an Affiliated Group Tax Return, a pro forma
Tax Return of the applicable Acquired Companies included in such consolidated, combined, unitary,
or similar Tax Return) to Purchaser at least forty-five (45) days prior to the due date (including
extensions thereof) for such return for its review and comment, and shall make such revisions to
such returns as are reasonably requested by Purchaser. If Purchaser does not provide Seller with a
written description of the items in any such return that it disputes within fifteen (15) days
following the delivery to it of such return for its review, it shall be deemed to have accepted and
agreed to such return in the form provided.

 

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(c) Reimbursement. In the event that Seller or Purchaser is liable pursuant to
Section 7.1 for any Taxes paid by the other Party with respect to any Tax Return described in this
Section 7.2, reimbursement shall be made promptly, but no later than the later of (i)
thirty (30) days following written notice to the Person liable for the Tax from the Person that
shall pay the Tax, or (ii) the date such Tax is required to be paid.

Section 7.3 Tax Contests; Audit Responsibilities.

(a) General Rule. Except as otherwise provided in this Section 7.3, the Party
responsible for preparing and filing the affected Tax Return under Section 7.2 shall
control and bear the cost of the conduct of any Tax Contest in respect of Taxes reflected on such
Tax Return, including determining actions taken to pay, compromise or settle such Taxes.

(b) Seller’s Affiliated Group Tax Returns. In no event will Seller settle any such
Tax Contest relating to Seller’s Affiliated Group Tax Returns in a manner which would be reasonably
expected to materially adversely affect any of the Acquired Companies after the Closing Date
without Purchaser’s prior written consent (which shall not be unreasonably withheld, conditioned or
delayed).

(c) Straddle Periods. In the case of any Straddle Period, the Person not identified
in Section 7.3(a) as responsible for preparing and filing the affected Tax Return shall
have the right to participate in such Tax Contest to the extent the proceedings relate to any
matter which may give rise to a payment obligation by such other Party under this
Article VII. The Party receiving the notice of such Tax Contest will provide the other
Party with notice in writing of such Tax Contest involving the Acquired Companies within thirty
(30) days of receiving such notice from the Governmental Authority. If the non-notifying Party
does not respond within twenty (20) days of any such notice, they will be deemed to not participate
in such Tax Contest. Neither Party may settle any such Tax Contest in a manner that would be
reasonably expected to materially adversely affect the other without prior written consent (which
shall not be unreasonably withheld). In any Tax Contest where the non-notifying Party elects to
participate, each Party shall bear its own costs for participating in such Tax Contest, and both
parties must agree to cooperate in good faith before any final resolution is reached.

 

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Section 7.4 Cooperation.

(a) Each of Seller and Purchaser shall:

(i) provide assistance to each other Party as reasonably requested in preparing and filing Tax
Returns and responding to Tax audits or Tax authority disputes;

(ii) make available to each other Party as reasonably requested all relevant information,
records, and documents relating to Taxes for any of the Acquired Companies; and

(iii) retain any books and records that could reasonably be expected to be necessary or useful
in connection with any preparation by any other Party of any Tax Return, or for any audit,
examination, or proceeding relating to Taxes.

(b) Seller shall contact Purchaser prior to the disposition of any books and records as
described in Section 7.4(a) and allow Purchaser to obtain such books and records within
thirty (30) days of such notice.

Section 7.5 Tax Sharing Agreement. Any Tax-sharing or Tax-allocation agreement
between Seller (or any member of Seller Group other than the Acquired Companies) and any Acquired
Company shall be terminated as of the Closing Date, and no Acquired Company shall have further
liability under such agreement, and such agreement shall have no further effect, for any taxable
period (whether the current year or any past or future period).

ARTICLE VIII.

INDEMNIFICATION

Section 8.1 Survival of Representations and Warranties. All representations and
warranties set forth in this Agreement shall expire and terminate on the Closing Date and no Claim
Notice with respect to such representations and warranties may be delivered; provided, that
the representations and warranties (i) contained in Section 3.2, Section 3.4,
Section 5.2, Section 5.5 and Section 5.6 shall survive for one year after
the Closing; (ii) contained in Section 4.7 and Section 4.8 shall survive for three
months after the Closing; and (iii) contained in Section 3.1, Section 3.3,
Section 3.5, Section 4.2, Section 4.3, Section 4.20, Section
5.1, Section 5.3, Section 5.4 and Section 5.7 shall survive in
perpetuity. All covenants and other agreements contained in this Agreement and the other
Transaction Documents shall survive the Closing in perpetuity or until terminated in accordance
with their respective terms. Notwithstanding anything herein to the contrary, if a Claim Notice
has been delivered prior to the expiration of any applicable representation or warranty, then such
representation or warranty shall survive as to any claim in such Claim Notice until such claim has
been finally resolved.

 

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Section 8.2 Indemnification.

(a) Indemnification by Seller. Subject to the provisions of Article VII
and Article VIII, from and after the Closing, Seller agrees to indemnify and hold harmless
Purchaser and its officers, directors and affiliates (including the Acquired Companies) (the
“Purchaser Indemnified Persons”), against any and all Losses (other than Losses relating to
Taxes for which the indemnification provisions in Section 7.1 shall govern) incurred or
suffered by the Purchaser Indemnified Persons, or any of them, as a result of:

(i) the breach of any representation or warranty made by Seller in this Agreement (subject to
survival or the duration of survival of such representation or warranty pursuant to the terms of
this Agreement);

(ii) the breach of any covenant or agreement made by Seller in this Agreement or any other
Transaction Document (other than the Transition Services Agreement and the HQ Sublease);

(iii) any claim for brokerage or finder’s fees payable by any Acquired Company in connection
with the transactions contemplated by this Agreement;

(iv) any liabilities, expenses, obligations or claims to the extent arising from the actions
or omissions of (A) the Seller and its Subsidiaries (other than the Acquired Companies) and (B) the
Acquired Companies prior to Closing, in each case, related to Met Center 10; provided, that
indemnification under this clause (iv) shall not cover or include any liabilities, expenses,
obligations or claims paid or satisfied prior to the Closing or reflected on the Financial
Statements (including legal and expert fees and expenses) relating to Met Center 10;
provided, further, that indemnification under this clause (iv) shall not cover or
include any legal and expert fees and expenses relating to Met Center 10 that have not been paid or
satisfied prior to the Closing or reflected on the Financial Statements (“Unpaid Met 10 Legal
Expenses”) except to the extent (and only to the extent) that the aggregate amount of such
Unpaid Met 10 Legal Expenses exceeds $650,000;

(v) any liabilities, expenses, obligations or claims for severance payments that are required
to be paid by an Acquired Company (1) to any individual who was an employee of an Acquired Company
immediately prior to the Closing and who is terminated by an Acquired Company (and not hired by
another Acquired Company or any Affiliate thereof) within sixty (60) days after the Closing Date
(any such individual, a “Promptly Terminated Employee”) and (2) pursuant to the terms (as
in effect immediately prior to the Closing) of any employment
agreement or employment offer letter applicable to such Promptly
Terminated Employee that was in force and effect immediately prior to
the Closing or any Employee Plan maintained by an Acquired Company
that was in force and effect immediately before the Closing; provided, that, for the
avoidance of doubt, (A) indemnification under this clause (v) shall only cover liabilities,
expenses, obligations or claims for contractual severance payment obligations or other severance
commitments pursuant to the terms (as in effect immediately prior to
the Closing) of an employment
agreement or employment offer letter applicable to such Promptly
Terminated Employee that was in force and effect immediately prior to
the Closing or any Employee
Plan maintained by an Acquired Company that was in force and effect immediately prior to the
Closing and (B) indemnification under this clause (v) shall not cover any other liabilities,
expenses, obligations or claims that arise or may be asserted as a result of the termination of any
employee of an Acquired Company (including claims for wrongful termination or discrimination); or

(vi) fraud by Seller or any of its Subsidiaries (other than the Company or any other Acquired
Company).

 

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(b) Indemnification by Purchaser. Subject to the provisions of Article VII
and Article VIII, from and after the Closing, Purchaser agrees to indemnify and hold
harmless Seller and its officers, directors and affiliates (the “Seller Indemnified
Persons,” and together with the Purchaser Indemnified Persons, the “Indemnified
Persons” and each an “Indemnified Person”), against any and all Losses (other than
Losses relating to Taxes, for which the indemnification provisions in Section 7.1 shall
govern) incurred or suffered by the Seller Indemnified Persons, or any of them, as a result of: 

(i) the breach of any representation or warranty made by Purchaser in this Agreement (subject
to survival of such representation or warranty pursuant to the terms of this Agreement);

(ii) the breach of any covenant or agreement made by Purchaser in this Agreement or any other
Transaction Document (other than the Transition Services Agreement and the HQ Sublease);

(iii) any liabilities of, obligations of or claims against Seller or any of its Subsidiaries
related to or arising from the businesses or operations of any Acquired Company (whether relating
to matters that occurred, arose or were asserted prior to the Closing or relating to matters that
occur, arise or are asserted after the Closing), including existing and future litigation and
claims, non-recourse carve-out guarantees and other guaranty obligations of Seller and its
Subsidiaries; provided, however, that Purchaser shall not be obligated to indemnify
any Seller Indemnified Person for, and (as between Purchaser and the Seller Indemnified Parties)
Seller and its Subsidiaries shall be responsible for, Losses of a Seller Indemnified Person that
are the result of any (x) pending litigation or proceeding identified on Section 8.2(b) of
the Disclosure Schedule or (y) fraud by Seller;

(iv) the first $650,000 of Unpaid Met 10 Legal Expenses; or

(v) fraud by Purchaser or any of its Subsidiaries.

Section 8.3 Calculation of Losses.

(a) The amount of any Loss for which indemnification is provided under Section 8.2 and
Section 7.1 shall be reduced by an amount (the “Offset Amount”) equal to (i) the
proceeds actually received by the Indemnified Person under any insurance policy or from any
third-party in respect of such Loss, less (ii) all out-of-pocket costs and expenses incurred by
such Indemnified Person in connection with obtaining such insurance proceeds or third-party
recovery (including reasonable attorneys’ fees). An Indemnified Person shall use reasonable best
efforts to pursue any insurance recovery or third-party recovery available to it with respect to
any Loss for which such Indemnified Person seeks indemnification pursuant to this
Article VIII.

(b) The amount of Loss for which indemnification is provided under Section 8.2 and
Section 7.1 shall be (i) increased to take account of any net Tax cost (other than a
reduction in Tax basis or utilization of Tax attributes of an Acquired Company) incurred by the
Indemnified Person arising from the receipt of indemnity payments hereunder (grossed up for such
increase) and (ii) reduced to take account of any net Tax benefit actually realized by the
Indemnified Person arising from the incurrence or payment of such Loss (but in no event more than
three (3) years after the date of the applicable indemnification payment), in each case when and as
such Tax cost or benefit is actually realized through an increase or reduction in Taxes otherwise
due.

 

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(c) If an Indemnified Person receives a payment for a Loss under any insurance policy or from
a third-party, or receives any Tax benefit as described in clause (ii) of Section 8.3(b),
at any time subsequent to receiving any indemnification payment by the Indemnifying Person pursuant
to Section 8.2, then such Indemnified Person shall promptly reimburse, in an amount up to
the amount of such third-party payment or Tax benefit, the Indemnifying Person for any payment made
by the Indemnifying Person related thereto.

Section 8.4 Proceedings Involving Third Parties.

The rights and obligations of Purchaser and Seller with respect to any claim or other
assertion of liability by a third party (a “Third Party Proceeding”) shall be subject to
the terms and conditions set forth in this Section 8.4.

(a) The Indemnified Person shall give prompt written notice of such Third Party Proceeding to
the Party from whom indemnification is sought (the “Indemnifying Person”), but the failure
to give such notice or a delay in giving such notice shall not affect the Indemnified Person’s
right to indemnification or the Indemnifying Person’s obligation to indemnify as set forth in this
Agreement, except to the extent the Indemnifying Person’s ability to remedy, contest, defend or
settle with respect to such Third Party Proceeding is actually prejudiced thereby. Such written
notice shall describe in reasonable detail such Third Party Proceeding and the amount of the
potential Loss, in each case to the extent known.

(b) Following receipt of a notice regarding a Third Party Proceeding, an Indemnifying Person
may assume and control the defense of a Third Party Proceeding through counsel or other
representatives of its choice if the Indemnifying Person provides written notice to the Indemnified
Person of its decision to do so within 20 days after the receipt of the notice of the Third Party
Proceeding, and in such written notice the Indemnifying Person acknowledges its obligation to
indemnify the Indemnified Person against any Losses that may result from such Third Party
Proceeding; provided that with respect to claims arising out of matters described in clause
(iii) of Section 8.2(b) (the “Specified Claims”), Purchaser shall have the right to
undertake (and continue to undertake) the defense of a Specified Claim only if Purchaser has also
provided Seller with reasonable assurances that Purchaser has the financial condition and cash
available to adequately undertake the defense of such Specified Claim. In the event that an
Indemnifying Person does not elect to assume and control the defense of a Third Party Proceeding,
or ceases to adequately defend such Third Party Proceeding, the Indemnified Person shall control
the defense of the Third Party Proceeding.

(c) The Party not controlling the defense of such Third Party Proceeding (the
“Non-controlling Party”) may participate therein at its own expense. The Party controlling
the defense of such Third Party Proceeding (the “Controlling Party”) shall keep the
Non-controlling Party advised of the status of such Third Party Proceeding and shall consider in
good faith recommendations made by the Non-controlling Party with respect thereto. The
Non-controlling Party shall furnish the Controlling Party with such non-privileged information as
it may have with respect to such Third Party Proceeding (including copies of any summons, complaint
or other pleading which may have been served on such Party and any written claim, demand, invoice,
billing or other document evidencing or asserting the same) and shall otherwise cooperate with and
assist the Controlling Party with respect to the defense of such Third Party Proceeding.

 

48

 

(d) The Controlling Party shall not agree to any settlement of, or the entry of any judgment
arising from, any such Third Party Proceeding without the prior written consent of the
Non-controlling Party, which shall not be unreasonably withheld, conditioned or delayed;
provided that the consent of the Indemnified Person shall not be required if (i) the
Indemnifying Person agrees in writing to pay all amounts payable pursuant to such settlement or
judgment, (ii) such settlement, compromise or judgment includes as an unconditional term thereof
the giving by the claimant or the plaintiff to the Indemnified Person of an irrevocable release
from all Losses in respect of such Third Party Proceeding and (iii) such settlement, compromise or
judgment does not impose any injunctive relief or operational restrictions on Seller and its
Subsidiaries.

(e) Notwithstanding anything to the contrary in Section 8.4(d), with respect to any
Third Party Proceeding against any Acquired Company that arises out of or relates to the Business
or operations of any Acquired Company prior to the Closing, Purchaser shall not and shall cause the
Acquired Companies not to, without the prior written consent of Seller, settle or compromise such
Third Party Proceeding or consent to entry of any judgment unless (i) such settlement, compromise
or judgment includes as an unconditional term thereof the giving by the claimant or the plaintiff
to Seller and its Subsidiaries of an irrevocable release from all Losses in respect of such Third
Party Proceeding in form and substance satisfactory to Seller and (ii) such settlement, compromise
or judgment does not impose any injunctive relief or operational restrictions on Seller and its
Subsidiaries.

(f) Notwithstanding the foregoing, in the event of a Loss relating to a Tax Contest, to the
extent that this Section 8.4 is inconsistent with Section 7.3 hereof, the
provisions of Section 7.3 shall govern.

Section 8.5 Claims for Indemnification. Subject to Section 7.3, an
Indemnified Person shall make any claims for indemnification pursuant to Section 8.2 or
Section 7.1 by delivering a Claim Notice to the Indemnifying Person, but the failure to
give a Claim Notice or a delay in giving a Claim Notice shall not affect the Indemnified Person’s
right to indemnification or the Indemnifying Person’s obligation to indemnify as set forth in this
Agreement, except to the extent the Indemnifying Person’s ability to remedy, contest, defend or
settle with respect to the claims set forth in such Claim Notice is actually prejudiced thereby.
For purposes hereof, “Claim Notice” shall mean a notice describing in reasonable detail the
facts constituting the basis for the claims for indemnification and, to the extent practicable, the
amount of the Losses or the potential Losses the Indemnified Person reasonably anticipates that it
may have to pay in respect of such claims. An Indemnifying Person may make written objection to
any claim for indemnification, which, subject to Section 7.3, shall be delivered to the
Indemnified Person within thirty (30) days after delivery of the Claim Notice to the Indemnifying
Person. The Indemnifying Person and the Indemnified Person shall attempt in good faith to resolve
any claim for indemnification to which an objection is made.

 

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Section 8.6 Treatment of Indemnification Claims. All indemnification payments made
under this Agreement shall be treated by all Parties as an adjustment to the Stock Purchase Price.
All indemnification payments made by Seller to an Acquired Company under this Agreement shall be
treated by all Parties as additional payments in satisfaction of a portion of the Net Balance as of
Closing. For the avoidance of doubt, no indemnity payment by Seller to an Acquired Company will
reduce the principal amount of the Seller Term Note or reduce or offset the Seller Closing Net
Balance Payment.

Section 8.7 Threshold for Indemnification Claims.

(a) The Purchaser Indemnified Persons shall not be entitled to indemnification under
Section 8.2(a)(i) (excluding the Seller Fundamental Representations and fraud by Seller)
until the Losses claimed exceed $150,000 in the aggregate (the “Basket Amount”), in which
case the Purchaser Indemnified Persons shall be entitled to recover all properly indemnifiable
Losses in excess of the Basket Amount.

(b) The Seller Indemnified Persons shall not be entitled to indemnification under Section
8.2(b)(i) (excluding the Purchaser Fundamental Representations and fraud by Purchaser) until
the Losses claimed exceed the Basket Amount, in which case the Seller Indemnified Persons shall be
entitled to recover all properly indemnifiable Losses in excess of the Basket Amount.

Section 8.8 Limitation on Indemnification.

(a) Notwithstanding anything to the contrary in this Agreement, the liability of Seller for
indemnifying the Purchaser Indemnified Persons pursuant to Section 8.2(a)(i) (excluding the
Seller Fundamental Representations and fraud by Seller) shall not exceed $5,000,000 in the
aggregate (the “Indemnity Cap”).

(b) Notwithstanding anything to the contrary in this Agreement, the liability of Purchaser for
indemnifying the Seller Indemnified Persons pursuant to Section 8.2(b)(i) (excluding the
Purchaser Fundamental Representations and fraud by Purchaser) shall not exceed the Indemnity Cap.

(c) The liability of Purchaser for indemnifying the Seller Indemnified Persons for
liabilities, obligations or claims related to or arising from the business or operations of any
Acquired Company as provided in Section 8.2(b)(iii) (if related solely to any fact, event
or circumstance prior to the Closing) shall not exceed $7,500,000 in the aggregate. For the
avoidance of doubt, the limitations in this Section 8.8(c) shall not apply to any Losses
that arise out of the business or operations of any Acquired Company after the Closing.

(d) No Indemnified Person shall have a right to indemnification with respect to any
incidental, special, punitive or consequential damages incurred or suffered by an Indemnified
Person hereunder.

 

50

 

Section 8.9 Exclusive Remedy. The Parties hereby acknowledge and agree that, from and
after the Closing, the sole and exclusive remedy of the Parties hereto with respect to any and all
claims arising in connection with the transactions contemplated by this Agreement (not including
those transactions contemplated by any Transaction Document other than this Agreement) shall be
pursuant to the indemnification provisions set forth in Article VIII and
Article VII, except that, notwithstanding the foregoing, each party will have, in addition
to its rights to indemnification, all other available rights under law with respect to any breach
of (i) the Transition Services Agreement, Intercompany Balance Settlement and Release Agreement or
any other Transaction Document other than this Agreement, (ii) any post-closing covenant (each of
which shall be specifically enforceable where permitted under law) or (iii) any Purchaser
Fundamental Representation or Seller Fundamental Representation, as the case may be.

Section 8.10 No Set-Off. Neither Purchaser nor any Purchaser Indemnified Person shall
have any right to set-off any Losses against any payments to be made by Purchaser pursuant to any
Transaction Document.

ARTICLE IX.

MISCELLANEOUS

Section 9.1 Expenses. Except as otherwise specified in this Agreement, all costs and
expenses, including fees and disbursements of counsel, financial advisors and accountants, incurred
in connection with the Contemplated Transactions shall be paid by the Party incurring such costs
and expenses, it being understood that any out-of-pocket expenses for legal, consulting and
financial advisory services that were incurred, and not paid, by any of the Acquired Companies
prior to the Closing in connection with the Contemplated Transactions shall be considered expenses
of Seller and shall be paid by Seller directly to the respective service provider promptly after
submission by the Acquired Company to Seller of a copy of an invoice received by the Acquired
Company from such service provider with respect to such services. For the avoidance of doubt, (i)
any costs and expenses for any such services that were paid by any Acquired Company prior to the
Closing shall not be considered expenses of Seller and (ii) any legal and expert fees and expenses
relating to Met Center 10 shall be deemed not to have been incurred in connection with the
Contemplated Transactions for purposes of this Section 9.1.

Section 9.2 Notices. All notices, requests, demands, claims and other communications
hereunder shall be in writing. Any notice, request, demand, claim or other communication shall be
deemed duly given (a) two (2) Business Days after it is sent by registered or certified mail,
return receipt requested, postage prepaid, (b) one (1) Business Day after it is sent for next
Business Day delivery via a reputable nationwide overnight courier service, or (c) on the date sent
after transmission by facsimile with written confirmation, in each case to the intended recipient
as set forth below (or at such other address for a Party hereto as shall be specified in a notice
given in accordance with this Section 9.2).

If to Purchaser or the Company to:

IUC-SOV, LLC

1551 North Tustin Avenue

Santa Ana, California 92705

Attention: Todd A. Mikles

 

51

 

with a copy (which will not constitute notice) to:

IUC-SOV, LLC

1551 North Tustin Avenue

Santa Ana, California 92705

Attention: Steven Kries

If to Seller, to:

Grubb & Ellis Company

1551 N. Tustin Ave., Suite #300

Santa Ana, CA 92705

Attention: Chief Executive Officer

with copies (which will not constitute notice) to:

Jenner & Block LLP

353 N. Clark Street

Chicago, IL 60654-3456

Attention: Ross B. Bricker, Esq.

                 Donald E. Batterson, Esq.

                 Brian R. Boch, Esq.

Facsimile: (312) 527-0484

Section 9.3 Public Announcements. Seller and Purchaser shall consult with each other
before issuing, and give each other the opportunity to review and comment upon, any press release
or other public statement (other than routine employee communications) with respect to the
Contemplated Transactions and shall not issue any such press release or make any such public
statement prior to such consultation, except as such Party may in its good faith judgment conclude
may be required by applicable Law, regulation or stock market rule (in which case the disclosing
Party shall use reasonable efforts to consult the other Party and provide it with a copy of the
proposed disclosure prior to making the disclosure). The Parties contemplate that a press release
be issued with respect to the announcement of the Contemplated Transactions.

Section 9.4 Severability. Whenever possible, each provision of this Agreement will be
interpreted in such manner as to be effective and valid under applicable Law, but if any provision
of this Agreement is held to be prohibited by or invalid under applicable Law, such provision will
be ineffective only to the extent of such prohibition or invalidity, without invalidating the
remainder of this Agreement.

Section 9.5 Entire Agreement. The Transaction Documents constitute the entire
agreement of the Parties hereto with respect to the subject matter hereof and supersede all prior
agreements, covenants, representations, warranties, undertakings and understandings, written or
oral, among the Parties hereto with respect to the subject matter hereof; provided,
however, that the Confidentiality Agreement shall continue in full force and effect and
shall survive the execution and delivery of this Agreement, the Closing and the consummation of the
transactions contemplated hereby.

 

52

 

Section 9.6 Assignment. This Agreement may not be assigned by operation of Law or
otherwise without the express written consent of (i) Seller in the case of Purchaser or, from and
after the Closing, the Company, and (ii) Purchaser in the case of Seller (which consent may in each
case be granted or withheld in the sole discretion of each such Party).

Section 9.7 No Third Party Beneficiaries. This Agreement shall be binding upon and
inure solely to the benefit of the Parties and their permitted assigns and nothing herein, whether
express or implied, is intended to or shall confer upon any other Person any legal or equitable
right, benefit or remedy of any nature whatsoever under or by reason of this Agreement;
provided, however, that the provisions of Section 6.9 concerning
Indemnified Representatives are for the benefit of such Persons and the provisions of Article VIII
concerning Indemnified Persons are intended for the benefit of such Persons.

Section 9.8 Amendment. This Agreement may not be amended, restated, supplemented or
otherwise modified except by an instrument in writing signed by the Parties.

Section 9.9 Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND
ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND
PERFORMED ENTIRELY IN THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO ANY PRINCIPLES OF CONFLICTS
OF LAWS THAT WOULD CAUSE THE LAWS OF ANY OTHER JURISDICTION TO APPLY. Each of the Parties submits
to the exclusive jurisdiction of any state or federal court sitting in Orange County, California,
in any action or proceeding arising out of or relating to this Agreement or the Contemplated
Transactions and agrees that all claims in respect of the action or proceeding may be heard and
determined in any such court. Each Party also agrees not to bring any action or proceeding arising
out of or relating to this Agreement or the Contemplated Transactions in any other court. Each of
the Parties waives any defense of inconvenient forum to the maintenance of any action or proceeding
so brought and waives any bond, surety or other security that might be required of any other party
with respect to any such action or proceeding.

Section 9.10 Waiver of Jury Trial. EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY
CONTROVERSY THAT MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT
ISSUES, AND THEREFORE IT IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY
JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS
AGREEMENT OR THE CONTEMPLATED TRANSACTIONS. EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT (I) NO
REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT
SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, (II)
IT UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF SUCH WAIVER, (III) IT MAKES SUCH WAIVER
VOLUNTARILY AND (IV) IT HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE
MUTUAL WAIVER AND CERTIFICATIONS IN THIS SECTION 9.10.

 

53

 

Section 9.11 Counterparts and Electronic Delivery. This Agreement may be executed in
one or more counterparts, and by the different Parties hereto in separate counterparts, each of
which when executed shall be deemed to be an original but all of which taken together shall
constitute one and the same agreement. This Agreement may be executed and delivered by email or
fax.

Section 9.12 Specific Performance. The Parties agree that irreparable damage would
occur in the event any provision of this Agreement to be performed was not performed in accordance
with the terms thereof and that the Parties shall be entitled to specific performance of the terms
hereof, in addition to any other remedy at law or equity.

Section 9.13 Additional Seller Matters.

(a) If, within 366 days after the Closing, Seller commences, or a third party commences
against Seller, any case, proceeding or relief of debtors (i) seeking to have any order for relief
of Seller’s debts, or seeking to adjudicate Seller as bankrupt or insolvent, or (ii) seeking
appointment of a receiver, trustee, custodian or other similar official for Seller or for all or
any substantial part of Seller’s assets, Seller agrees as follows:

(i) Seller’s obligations under this Agreement may not be avoided pursuant to 11 U.S.C. §§547
or 548, and Seller shall not argue or otherwise take the position in any such case, proceeding or
action that (x) Seller’s obligations under this Agreement may be avoided under 11 U.S.C. §§547 or
548, (y) Seller was insolvent at the time this Agreement was entered into, or Seller became
insolvent as a result of any payments made by Seller to any Acquired Company in connection with the
Closing, or (z) the mutual promises, covenants and obligations set forth in this Agreement do not
constitute a contemporaneous exchange for new value given to Seller;

(ii) If Seller’s obligations under this Agreement are avoided for any reason, including, but
not limited to, through the exercise of a trustee’s avoidance powers under Chapter 11 of Title 11,
U.S.C. §§101 et seq., as amended, Purchaser, at its sole option, may rescind any release contained
in this Agreement and bring any appropriate claim, action or proceeding against the counterparty
thereto for the claims that would otherwise be covered by any release stated herein; and

(iii) Seller acknowledges that its agreements in this Section 9.13(a) are provided in
exchange for valuable consideration provided in this Agreement.

 

54

 

(b) Seller represents and warrants to Purchaser that:

(i) In evaluating whether to execute this Agreement, Seller (1) has intended that the mutual
promises, covenants and obligations set forth herein constitute a contemporaneous exchange for new
value given to Seller, within the meaning of 11 U.S.C. §§ 547(c)(1); and (2) agrees that these
mutual promises, covenants and obligations do, in fact, constitute such a contemporaneous exchange;
and

(ii) The mutual promises, covenants and obligations set forth herein are intended by Seller
to, and do in fact, represent a reasonably equivalent exchange of value that is not intended to
hinder, delay or defraud any entity to which Seller was indebted to on the date of this Agreement,
within the meaning of 11 U.S.C. §§ 548(a)(1).

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

55

 

IN WITNESS WHEREOF, each Party hereto has executed, or caused its duly authorized
officer to execute, this Stock Purchase Agreement as of the date first written above.

	 	 	 	 	 
	 	SELLER:

GRUBB & ELLIS COMPANY

 	 
	 	By:  	/s/ Michael Rispoli
 	 
	 	 	Name:  	Michael Rispoli 	 
	 	 	Title:  	Executive Vice President and

Chief Financial Officer 	 
	 
	 	PURCHASER:

IUC-SOV, LLC

 	 
	 	By:  	/s/ Todd A. Mikles
 	 
	 	 	Name:  	Todd A. Mikles 	 
	 	 	Title:  	President and CEO 	 

Signature Page to Stock
Purchase Agreement

 

56exv10w2

Exhibit 10.2

THIS PROMISSORY NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE
SECURITIES LAWS OF ANY STATE AND MAY NOT BE SOLD OR TRANSFERRED ABSENT REGISTRATION THEREUNDER OR
AN EXEMPTION THEREFROM.

PROMISSORY NOTE

			
	 	 	 
	$5,000,000
	 	August 10, 2011

The undersigned, Grubb & Ellis Company, a Delaware corporation (“Maker”), hereby
promises to pay to NNN Realty Advisors, Inc., a Delaware corporation (the “Holder”), the
principal amount of FIVE MILLION AND 00/100ths DOLLARS ($5,000,000.00) in accordance with the
provisions of this Promissory Note (this “Note”).

1. Payments.

1.1 Scheduled Payments.

(a) Principal. Subject to the mandatory prepayments required under Section 1.3 below and
acceleration of this Note under Section 4.2, Maker shall pay to the Holder the entire remaining
unpaid principal balance of this Note (together with all accrued and unpaid interest thereon) on or
before August 10, 2016 (the “Maturity Date”).

(b) Interest Payments. Interest shall accrue on the unpaid principal amount of this Note from
and after the date hereof on a daily basis at a rate equal to seven and ninety five one-hundredths
percent (7.95%) per annum. Interest shall be calculated on the basis of the actual number of days
elapsed and a year of 360 days. Maker shall pay to the Holder all accrued and unpaid interest (i)
on the last day of each calendar quarter, commencing on September 30, 2011 (provided, that if such
date is not a business day, Maker shall pay to the Holder such amount on the first business day
following such date) and (ii) on the Maturity Date.

1.2 Voluntary Prepayments. Maker may, at any time and from time to time without
premium or penalty, prepay all or a portion of the outstanding principal amount of this Note;
provided, that if Maker elects to prepay all of the outstanding principal amount of this Note, all
accrued and unpaid interest as of the date of such prepayment shall become due and payable on such
payment date.

1.3 Mandatory Prepayments.

(a) Upon either (i) a Change of Control (as defined below) of Maker or (ii) a Recapitalization
Event (as defined below), Maker shall prepay to the Holder, on the date that is ten (10) business
days following the date of such Change of Control or Recapitalization Event or, if such date is not
a business day, the first business day following such date (the “Mandatory Prepayment
Date”), an amount equal to the sum of: (A) an amount of principal (the “Mandatory Principal
Prepayment Amount”) equal to the lesser of (x) $3,000,000 and (y) the outstanding principal
amount of this Note; plus (B) all accrued and unpaid interest on the Mandatory Principal Prepayment
Amount as of such Mandatory Prepayment Date.

 

 

 

(b) The term “Change of Control” shall mean: (i) any “person” or “group” (as such terms are
used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”), or any successor provisions to either of the foregoing), including any
group acting for the purpose of acquiring, holding, voting or disposing of securities within the
meaning of Rule 13d-5(b)(1) under the Exchange Act, becomes the “beneficial owner” (as defined in
Rule 13d-3 under the Exchange Act), directly or indirectly, of 50% or more of the total voting
power of Maker (other than as a result of any merger, share exchange, transfer of assets or similar
transaction solely for the purpose of changing the Maker’s jurisdiction of incorporation and
resulting in a reclassification, conversion or exchange of outstanding shares of common stock
solely into shares of common stock of the surviving entity) or (ii) a sale of all or substantially
all of the assets of Maker.

(c) The term “Recapitalization Event” shall mean: a transaction or series of transactions in
which Maker or any of its subsidiaries (i) secures equity financing, (ii) effects a refinancing of
existing indebtedness or (iii) effects a recapitalization, in each instance, for net additional
proceeds to Maker of at least $30,000,000 in the aggregate.

2. Place of Payment. All payments hereunder shall be made in United States dollars
and shall be made in the manner and at the time and place designated in writing by the Holder.

3. Set-offs. Maker is hereby authorized at any time and from time to time to offset
and apply any and all indebtedness or other obligations at any time owing by the Holder or any
affiliate of the Holder to or for the credit or the account of Maker or any affiliate of Maker
pursuant to the Transition Services Agreement (as defined below) or any other Transaction Document
(as defined below) against any and all accrued and unpaid interest obligations of the Maker
existing under this Note. Maker agrees to notify the Holder in writing at its principal office
specified in Section 9 hereof (or at such other address as the Holder may have specified for this
purpose by written notice given to Maker at its principal office specified in Section 9 hereof)
after any such offset made by Maker; provided, that if prior to or after making any offset pursuant
to this provision, Maker or any affiliate of Maker receives payment with respect to the
indebtedness that was the subject of such offset, such offset shall be deemed null and void ab
initio. The rights of Maker under this paragraph are in addition to other rights and remedies that
Maker may have pursuant to the Transition Services Agreement, any other Transaction Document or
applicable law. The terms “Transition Services Agreement” and “Transaction Document” shall have
the meanings ascribed to such terms in that certain Stock Purchase Agreement, dated as of August
10, 2011, by and between Maker and IUC-SOV, LLC a Delaware limited liability company.

4. Default.

4.1 Events of Default. Each of the following shall constitute an event of default
(each an “Event of Default”):

(a) Maker defaults in the payment of any interest or principal on this Note when due and such
default continues for a period of ten (10) days after written notice from the Holder;

(b) Maker is adjudicated insolvent or bankrupt;

 

2

 

(c) Maker seeks dissolution or reorganization or the appointment of a receiver, trustee,
custodian or liquidator for it or a substantial portion of its property, assets or business or to
effect a plan or other arrangement with its creditors;

(d) Maker makes a general assignment for the benefit of its creditors, or consents to or
acquiesces in the appointment of a receiver, trustee, custodian or liquidator for a substantial
portion of its property, assets or business;

(e) Maker files a voluntary petition under any bankruptcy, insolvency or similar law; or

(f) Maker becomes the subject, or a substantial portion of its property, assets or business
shall become the subject, of an involuntary proceeding or petition for its dissolution or
reorganization or the appointment of a receiver, trustee, custodian or liquidator, or Maker becomes
subject to any final and non-appealable writ, judgment, warrant of attachment, execution or similar
process that would cause a material adverse effect on the financial condition of Maker and its
subsidiaries, taken as a whole.

4.2 Remedies. Upon the occurrence and during the continuance of an Event of Default:
(a) the Holder may, at its option, declare and demand this Note immediately due and payable and (b)
the Holder may pursue all rights and remedies available hereunder or otherwise available at law or
in equity.

5. Governing Law; Severability. This Note shall be governed by, and construed and
enforced in accordance with, the internal laws of the State of New York, without giving effect to
any conflicts of law principles that would cause the application of the laws of any other
jurisdiction. The invalidity, illegality or unenforceability of any provision of this Note shall
not affect or impair the validity, legality or enforceability of the other provisions of this Note
and, to this end, any invalid, illegal or unenforceable provision of this Note is declared to be
severable.

6. Waivers. Maker hereby expressly waives diligence, presentment for payment, demand,
protest, notice of protest and notice of dishonor hereof, and all other notices to which Maker is
entitled.

7. Amendments. This Note may only be amended by a writing signed by Maker and the
Holder.

8. Captions. The captions of the Sections of this Note are for convenience of
reference only and shall not be deemed to modify, explain, enlarge or restrict any of the
provisions hereof.

9. Notices. All notices and other communications provided for herein shall be in
writing and shall be delivered by hand or overnight courier service or mailed by certified or
registered mail, to the following addresses and addressees: (a) in the case of Maker, to 1551 North
Tustin Avenue, Suite 300, Santa Ana, California 92705, Attention: Chief Financial Officer or (b)
in the case of the Holder, to IUC-SOV, LLC, 1551 North Tustin Avenue, Santa Ana, California 92705,
Attention: Todd A. Mikles, with a copy (which shall not constitute notice) to IUC-SOV, LLC, 1551
North Tustin Avenue, Santa Ana, California 92705, Attention: Steven Kries.

 

3

 

10. Venue; Service of Process. All actions or proceedings arising in connection with
this Note shall be tried and litigated only in state or federal courts located in the State of New
York, unless such actions or proceedings are required to be brought in another court to obtain
subject matter jurisdiction over the matter in controversy. MAKER WAIVES ANY RIGHT IT MAY HAVE TO
ASSERT THE DOCTRINE OF FORUM NON CONVENIENS, TO ASSERT THAT IT IS NOT SUBJECT TO THE JURISDICTION
OF SUCH COURTS OR TO OBJECT TO VENUE TO THE EXTENT ANY PROCEEDING IS BROUGHT IN ACCORDANCE
HEREWITH. IN ANY ACTION AGAINST MAKER, SERVICE OF PROCESS MAY BE MADE UPON MAKER BY REGISTERED OR
CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO ITS ADDRESS ABOVE SET FORTH, WHICH SERVICE SHALL BE
DEEMED SUFFICIENT FOR PERSONAL JURISDICTION AND SHALL BE DEEMED EFFECTIVE THREE (3) DAYS AFTER
MAILING.

11. Jury Trial Waiver. MAKER AND HOLDER, BY ITS ACCEPTANCE OF THIS NOTE, HEREBY WAIVE
THEIR RESPECTIVE RIGHTS TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING BASED UPON, OR RELATED TO,
THE SUBJECT MATTER OF THIS NOTE. THIS WAIVER IS KNOWINGLY, INTENTIONALLY AND VOLUNTARILY MADE BY
MAKER AND BY HOLDER, AND MAKER ACKNOWLEDGES THAT NEITHER HOLDER NOR ANY PERSON ACTING ON BEHALF OF
HOLDER HAS MADE ANY REPRESENTATIONS OF FACT TO INCLUDE THIS WAIVER OF TRIAL BY JURY OR HAS TAKEN
ANY ACTIONS WHICH IN ANY WAY MODIFY OR NULLIFY ITS EFFECT. MAKER AND HOLDER ACKNOWLEDGE THAT THIS
WAIVER IS A MATERIAL INDUCEMENT TO ENTER INTO A BUSINESS RELATIONSHIP, THAT MAKER AND HOLDER HAVE
ALREADY RELIED ON THIS WAIVER IN ENTERING INTO THIS NOTE AND THAT EACH OF THEM WILL CONTINUE TO
RELY ON THIS WAIVER IN THEIR RELATED FUTURE DEALINGS. MAKER AND HOLDER FURTHER ACKNOWLEDGE THAT
THEY HAVE BEEN REPRESENTED (OR HAVE HAD THE OPPORTUNITY TO BE REPRESENTED) IN THE SIGNING OF THIS
NOTE AND IN THE MAKING OF THIS WAIVER BY INDEPENDENT LEGAL COUNSEL.

12. Expenses. Maker promises to reimburse the Holder for all reasonable out-of-pocket
fees and disbursements incurred or expended in connection with the enforcement of any rights or
remedies of the Holder, including, without limitation, reasonable fees and disbursements of outside
legal counsel; provided that the liability of Maker for reimbursement of fees,
disbursements and expenses as provided in this Section 12 shall not exceed $200,000 in the
aggregate.

13. Transfer. Neither Holder nor Maker may Transfer this Note or any right,
obligation or interest herein, except to the purchaser of all or substantially all of the assets of
the Holder or Maker. Notwithstanding anything to the contrary contained herein, if a Change of
Control occurs, this Note shall be automatically binding upon Maker’s successors and assigns.
“Transfer” shall mean any sale, transfer, assignment, pledge, exchange, hypothecation,
grant of a security interest or other disposition or encumbrance (including by operation of law).

(Remainder of page intentionally left blank)

 

4

 

IN WITNESS WHEREOF, the undersigned has duly executed this Promissory Note as of the day and
year first above written.

	 	 	 	 	 
	 	MAKER:

GRUBB & ELLIS COMPANY

a Delaware corporation

 	 
	 	By:  	/s/ Michael Rispoli
 	 
	 	 	Name:  	Michael Rispoli 	 
	 	 	Title:  	Executive Vice President and

Chief Financial Officer 	 

[Signature page to the Promissory Note]

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