Document:

Stock Unit Award Agreement

 EXHIBIT 10.4 
  
 STRATEGIC HOTEL CAPITAL, INC. 
 STOCK
UNIT AWARD AGREEMENT 
  
 We are pleased to inform you that you
have been awarded by Strategic Hotel Capital, Inc. (the “Company”), a stock unit award (the “Stock Unit Award”). 
  
 The terms of the Stock Unit Award are as set forth in this Stock Unit Award Agreement (“Agreement”). The Stock Unit Award Agreement is granted
under the Strategic Hotel Capital, Inc. 2004 Incentive Plan (“Plan”) and, except as expressly provided otherwise herein, is limited by and subject to the express terms and conditions of the Plan, a copy of which is attached. Capitalized
terms that are not defined in this Agreement have the meanings given to them in the Plan. The basic terms of the Stock Unit Award are summarized as follows: 
  

					
	 Grant Date:
	  	 	  	 
			
	 Number of Units:
	  	_______________	  	 

  

	1.	Vesting 

  
 (a) The Stock Unit Award is subject to forfeiture upon termination of your employment or service relationship with the Employer as described below. The
Stock Unit Award will vest and no longer be subject to forfeiture on the dates set forth below (each a “Vesting Date”) according to the following schedule: 
  

			
	 Date at Which Portion of Stock Unit
Award is Vested and No Longer Subject to
Forfeiture Provided
Continuous
Employment or Service With the Employer
From the Grant Date

	  	Portion of Stock Unit
Award Vested and
No Longer Subject
to Forfeiture

	 December 31, 20__
	  	  25%
	 December 31, 20__
	  	  50%
	 December 31, 20__
	  	  75%
	 December 31, 20__
	  	100%

  
 (b) Units that have
vested and are no longer subject to forfeiture according to the schedule above are referred to herein as “Vested Units.” Units that have not vested and remain subject to forfeiture under the preceding schedule are referred to herein as
“Unvested Units.” The Unvested Units will vest (and to the extent so vested cease to be Unvested Units remaining subject to forfeiture) in accordance with the above schedule. Collectively, the Unvested Units and Vested Units are referred
to herein as the “Units.” 
  

 (c) Early lapse of the forfeiture restrictions may occur as described below in connection with a Change
of Control, your death, your retirement from the Employer after age 60, or your Disability. 
  

	2.	Termination of Employment or Services 

  
 If your employment or service relationship with the Employer terminates for any reason other than death, retirement from the Employer after age 60, or
Disability, any portion of this Stock Unit Award that has not vested as provided in Section 1 will immediately terminate. You will forfeit all Unvested Units upon such occurrence without the payment of any further consideration to you. 

 
 If your employment or service relationship with the Employer terminates
because of death, retirement from the Employer after age 60, or Disability, the vesting of this Stock Unit Award will accelerate and all Units under this Stock Unit Award will become fully vested. 
  

	3.	Change of Control 

  
 Upon a Change of Control of the Company, the vesting of your Stock Unit Award will accelerate and all Units under this Agreement shall become fully
vested. 
  

	4.	Conversion of Units into Shares of Common Stock 

  
 Except as otherwise provided by a deferral election pursuant to Section 5 of this Agreement, Vested Units shall be converted into shares of Common Stock
and distributed to you on or about the February 15th following the day when Unvested Units become Vested Units at
the applicable Vesting Date or as soon as administratively feasible following your termination of employment with respect to Unvested Units which become Vested Units in accordance with Section 2. 
  
 If, however, you elect to defer payment of the shares of Common Stock as
provided in Section 5 of this Agreement, the shares of Common Stock shall be issued as set forth in the Deferral Election Agreement entered into between you and the Committee. 
  

	5.	Deferral Election 

  
 You may elect to defer delivery of the shares of Common Stock that would otherwise be due by virtue of the lapse or waiver of the vesting requirements as
set forth in Section 1. The Committee shall, in its sole discretion, establish the rules and procedures for such deferral elections and payment deferrals. 
  

	6.	Dividends 

  
 You shall be credited with dividend equivalents with respect to your Units under this Agreement. The Committee, in its sole discretion, may determine the
form of payment of dividend equivalents, including cash, shares of Common Stock or Units. 
  

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	7.	No Rights as Shareholder 

  
 You shall not have voting or any other rights as a shareholder of the Common with respect to the Units. Upon conversion of the Units into shares of Common
Stock, you will obtain full voting and other rights as a shareholder of the Company. 
  

	8.	Securities Law Compliance 

  
 Notwithstanding any other provision of this Agreement, you may not sell the shares of Common Stock acquired upon the conversion of Units unless such
shares are registered under the Securities Act or, if such shares are not then so registered, the Company has determined that such sale would be exempt from the registration requirements of the Securities Act. The sale of such shares of Common Stock
must also comply with other applicable laws and regulations governing the shares, and you may not sell the shares of Common Stock if the Company determines that such sale would not be in material compliance with such laws and regulations.

  

	9.	Transfer Restrictions 

  
 9.1 Restrictions on Transfer of Unvested Shares. Any sale, transfer, assignment, encumbrance, pledge, hypothecation, conveyance in trust, gift,
transfer by bequest, devise or descent, or other transfer or disposition of any kind, whether voluntarily or by operation of law, directly or indirectly, of Units shall be strictly prohibited and void, provided that such restrictions on transfer
will not apply to a gratuitous transfer of the Units, provided, and only if, you obtain the Committee’s prior written consent to such transfer. 
  
 9.2 Market Standoff. In connection with any underwritten public offering by the Company of its equity securities pursuant to an effective
registration statement filed under the Securities Act, including the Company’s initial public offering, you and any transferee agree not to sell, make any short sale of, loan, hypothecate, pledge, assign, grant any option for the purchase of,
or otherwise dispose or transfer for value or agree to engage in any of the foregoing transactions with respect to, any shares of Common Stock acquired upon the conversion of Units if so requested by the underwriter. Such limitations will be in
effect for such period of time as may be requested by the underwriter. 
  

	10.	Independent Tax Advice 

  
 You acknowledge that determining the actual tax consequences to you of receiving Units or shares of Common Stock or deferring or disposing of Units or
shares of Common Stock may be complicated. These tax consequences will depend, in part, on your specific situation and may also depend on the resolution of currently uncertain tax law and other variables not within the control of the Company. You
are aware that you should consult a competent and independent tax advisor for a full understanding of the specific tax consequences to you of receiving, deferring or disposing of Units or shares of Common Stock. Prior to executing this Agreement,
you either have consulted with a competent tax advisor independent of the Company to obtain tax advice concerning the Shares in light of your specific situation or have had the opportunity to consult with such a tax advisor but chose not to do so.

  

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	11.	Withholding and Disposition of Shares 

  
 You agree to make arrangements satisfactory to the Employer for the payment of any federal, state, local or foreign withholding tax obligations that arise
with respect to this Stock Unit Award, including, without limitation, the receipt of shares of Common Stock. Notwithstanding the previous sentence, you acknowledge and agree that the Employer has the right to deduct from payments of any kind
otherwise due to you any federal, state or local taxes of any kind required by law to be withheld with respect this Stock Unit Award, including, without limitation, the receipt of shares of Common Stock. 
  

	12.	General Provisions 

  
 12.1 No Waiver. No waiver of any provision of this Agreement will be valid unless in writing and signed by the person against whom such
waiver is sought to be enforced, nor will failure to enforce any right hereunder constitute a continuing waiver of the same or a waiver of any other right hereunder. 
  
 12.2 Undertaking. You hereby agree to take whatever additional action and execute whatever additional documents the
Committee may deem necessary or advisable in order to carry out or effect one or more of the obligations or restrictions imposed on either you, the Units or the shares acquired upon conversion of the Units pursuant to the express provisions of this
Agreement. 
  
 12.4 Agreement Is Entire Contract. This
Agreement constitutes the entire contract between the parties hereto with regard to the subject matter hereof. 
  
 12.5 Successors and Assigns. The provisions of this Agreement will inure to the benefit of, and be binding on, the Company and its successors and
assigns and you and your legal representatives, heirs, legatees, distributees, assigns and transferees by operation of law, whether or not any such person will have become a party to this Agreement and agreed in writing to join herein and be bound
by the terms and conditions hereof. 
  
 12.6 No
Employment or Service Contract. This Agreement does not confer upon you any right with respect to continuance of employment by the Employer, nor does it interfere in any way with the right of your employer to terminate your employment or
services at any time. 
  
 12.7 Counterparts. This Agreement
may be executed in two or more counterparts, each of which will be deemed an original, but which, upon execution, will constitute one and the same instrument. 
  

12.8 Governing Law. This Agreement will be construed and administered in accordance with and governed by the laws of the State of Illinois.

  
 REMAINDER OF PAGE INTENTIONALLY BLANK. SIGNATURE PAGE FOLLOWS.

  

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 IN WITNESS WHEREOF, the parties have executed this Agreement on the day and year indicated above on the
first page of this Agreement as the Grant Date. 
  

					
	STRATEGIC HOTEL CAPITAL, INC.
	
	 
		
	By:	 	 
	 	 	 Its:
	 	 
	
	 
	 [Name of Grantee]Purchase and Sale Agreement

 Exhibit 10.1 
  
 PURCHASE AND SALE AGREEMENT 
  

THIS PURCHASE AND SALE AGREEMENT (“Agreement”) is made and entered into as of this November 5, 2004, by and between MENTOR GRAPHICS
CORPORATION, an Oregon corporation, whose address is 8005 SW Boeckman Road, Wilsonville, Oregon 97070 (“Seller”), and FLIR SYSTEMS, INC., an Oregon corporation, whose address is 16505 SW 72nd Avenue, Portland, Oregon 97224 (“Buyer”). 
  

For valuable consideration, including the covenants, terms and conditions set forth below, Seller and Buyer have agreed as follows: 
  
 1. Sale and Purchase of Property. Seller agrees to sell to Buyer, and
Buyer agrees to buy, the real property located at 27700 SW Parkway Avenue, in the City of Wilsonville, County of Clackamas, State of Oregon, and more particularly described on Exhibit “A” attached hereto, including any and all
improvements located thereon, all easements, and all other rights of every nature appurtenant to such real property owned by Seller (collectively, the “Property”). 
  
 2. Price; Earnest Money; Payment. The purchase price for the Property and the Personal Property shall be the sum of
Ten Million Two Hundred Fifty Thousand and No/100 Dollars ($10,250,000.00) (the “Purchase Price”). Upon full execution of this Agreement, Buyer shall deposit the fully executed Agreement and the amount of Two Hundred Fifty Thousand
and No/100 Dollars ($250,000.00) as earnest money with the Title Company designated in Section 4 below (the “Earnest Money”). The date of such deposit shall be the “Effective Date.” After the Approval Date, as
hereafter defined, the Title Company shall hold the cash non-refundable earnest money until Closing. The balance of the Purchase Price shall be paid in cash at Closing (as defined in Section 5.1 below). 
  
 3. Buyer’s Inspection and Approval Rights. Within ten (10) days
after the Effective Date, Seller shall provide Buyer with copies of the materials listed on Exhibit “B”, collectively the “Documents”). Buyer shall have until December 15, 2004 (the “Approval Date”)
to (i) review the Documents; (ii) review all governmental restrictions applicable to the Property (including zoning restrictions); (iii) at reasonable times after reasonable prior written notice to Seller (and after prior notice to the tenant of the
Property if required by the tenant’s Lease), inspect the structural, roof, mechanical and electrical components of the Property and have a qualified environmental consultant inspect the Property and report as to the condition thereof; (iv)
obtain financing in amounts and terms which are satisfactory to Buyer; and (v) determine that the Property is otherwise satisfactory to Buyer. Buyer hereby indemnifies, protects, holds harmless and defends Seller from all liens, costs, judgments,
damages and expenses, including reasonable attorneys’ fees and experts’ fees, arising from or relating to Buyer’s entry and inspection of the Property. The time between the Effective Date and the Approval Date shall be referred to
herein as the “Approval Period.” Entry and inspection of the Property by Buyer, employees, contractors, agents and persons whom Buyer has otherwise authorized to enter and/or inspect the Property shall be deemed entry and inspection of the
Property by Buyer for purposes of this Section 3. This agreement to indemnify, hold harmless and defend Seller shall survive Closing or any termination of this Agreement. Buyer shall obtain, or cause its consultants or agents who enter upon and
inspect the Property to obtain, public liability insurance policies with 

 an insurer and in an amount reasonably satisfactory to Seller insuring against claims arising from or relating to
Buyer’s entry and inspection of the Property. Buyer shall deliver to Seller insurance certificates (on ACORD Form 25) naming Seller as an additional insured and reflecting the coverage required in this Section 3. Buyer shall conduct all its
required Property inspections in a manner that is not disruptive to the tenants or the operation of the Property. 
  
 During the Approval Period, Seller shall make all of its records pertaining to the ownership and operation of the Property reasonably available to Buyer
for its review and inspection. If Buyer is not satisfied, in its sole discretion, with the results of its inspections and determinations, Buyer may terminate this Agreement by written notice to Seller given at any time on or before the Approval
Date, and in such event the Earnest Money shall then be returned to Buyer and neither party shall have any further obligation to the other, except as may be otherwise expressly provided hereunder. If Buyer fails to give such notice of termination,
all of the conditions set forth in this Section 3 shall be deemed to have been waived by Buyer. Copies of any reports commissioned by Buyer shall be delivered to Seller. 
  
 4. Preliminary Title Report. Within ten (10) days after full execution of this Agreement, Seller shall furnish to
Buyer at Seller’s expense a preliminary title report issued by Chicago Title Insurance Company with an address of 888 SW Fifth Avenue, Suite 930, Portland, Oregon 97204 (the “Title Company”) showing the condition of title to
the Property (the “Title Report”). The Title Report shall include copies of all title exceptions. Buyer shall have ten (10) days from its receipt of the Title Report to review the Title Report and ten (10) days from receipt of the
partition plat to review the partition plat and in each case send Seller written notice rejecting any items reflected in the Title Report or on the partition plat, as the case may be. If Buyer rejects any item, Seller shall have five (5) days
thereafter to determine whether it is willing and able to remove the exceptions, and to deliver to Buyer an amended Title Report or other satisfactory written evidence of the removal of such exception from the Title Report or agree to have any item
on the partition plat removed. Those exceptions approved by Buyer and all Leases in respect to which Estoppel Certificates consistent with Section 5.2 have been issued are hereinafter referred to as the “Permitted Exceptions.” If
Seller fails within that period to remove or agree to remove any exception to which Buyer has objected, Buyer may terminate this Agreement by written notice to Seller, and the Earnest Money shall then be returned to Buyer. Notwithstanding the
foregoing, Seller shall be obligated to satisfy, on or before the Closing Date (as defined in Section 5.1 below), any exception created, or suffered to be created by Seller that is security for payment of a sum of money (including mortgages, trust
deeds, contractor’s liens and judgment liens). 
  
 5.
Closing. 
  
 5.1 Time and Place of Closing. The
Closing of the transaction provided for in this Agreement shall take place in escrow at the Title Company’s office in Portland, Oregon on or before January 3, 2005 (the “Closing” or “Closing Date”). 

 
 5.2 Seller’s Documents. The Property shall be conveyed at
Closing by special warranty deed (the “Deed”), free and clear of all liens, encumbrances, restrictions and reservations other than the Permitted Exceptions. In addition, Seller shall deliver to Buyer at Closing (i) assignment of
lease(s) assigning to Buyer all of Seller’s rights, title and interest in the 
  

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 Leases, (ii) estoppel certificates in the form attached hereto duly executed by the tenants confirming that the Leases
are in full force and effect and there exist no events of default thereunder, (iii) a warranty bill of sale conveying the personal property described on Exhibit “C” attached hereto (the “Personal Property”), and (iv) a
certification that Seller is not a “foreign person” under the Internal Revenue Code. 
  
 5.3 Conditions of Closing. In addition to the conditions to Closing described above, the obligations of Buyer hereunder shall be subject to the fulfillment of the following conditions on or prior to the Closing
Date, each of which shall be continuous conditions until Closing unless waived by Buyer: 
  

	 	a.	The representations and warranties of Seller contained in Section 11 shall be true and correct as of the Closing Date. 

  

	 	b.	There shall be no material change in the physical condition of the Property. 

  

	 	c.	Seller shall have delivered the estoppel certificate to Buyer. 

  

	 	d.	Seller and Buyer to agree on partition boundaries and necessary easements during the Approval Period and prior to partition with the City. 

  

	 	e.	Seller’s ability to obtain approval from the City of Wilsonville to partition the Property and record a partition plat so that the Property constitutes a legal parcel under
applicable land use laws and regulations. If approval from the City of Wilsonville is not obtained by January 3, 2005, either Seller or Buyer may extend the Closing Date by up to sixty (60) days by written notice to Buyer prior to 5:00 P.M. PST,
January 3, 2005. 

  
 If the conditions set forth in
this Section 5.3 have not been met or waived in writing by Buyer at or before the Closing Date, the Earnest Money shall then be returned to Buyer and neither party shall have any further obligation to the other, except as may be otherwise expressly
provided hereunder. 
  
 6. Title Policy. At Closing, Seller
shall furnish to Buyer, at Seller’s Expense, an ALTA standard coverage owner’s policy of title insurance, in the full amount of the Purchase Price, less any amounts allocated to non-fixture personal property (the “Title
Policy”). The Title Policy shall contain only the usual preprinted exceptions and the Permitted Exceptions. Buyer shall be responsible for the costs of any endorsements to the Title Policy required by Buyer. 
  
 7. Expenses. Buyer and Seller shall each pay one-half of the escrow
fee, and any transfer, excise or documentary stamp taxes. Seller shall pay the cost of recording the Deed and the cost of the Title Policy required to be delivered by Seller. Buyer shall pay the cost of recording any financing instruments. Each
party shall bear its own attorney fees, if any. 
  
 8.
Possession. Buyer shall be entitled to exclusive possession of the Property immediately upon Closing, subject to tenancies existing on the Closing Date. 
  

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 9. Prorations. All real property taxes, insurance, rents and other usual items shall be prorated
as of the Closing Date. Prior to Closing, Buyer and Seller shall prepare and agree on a closing statement which will list all prorations provided for under this Section. 
  
 10. Maintenance Prior to Closing. Seller shall maintain the Property in the same condition and repair as exists prior
to the Effective Date. After the Approval Date, Seller shall not, without the prior written consent of Buyer, make any change or modification in any zoning, use or any similar right with respect to the Property or create any new lease, restriction,
encumbrance, lien or assessment thereon, or terminate or modify any existing Leases. 
  
 11. Seller’s Representations and Warranties. Seller represents and warrants to Buyer as follows: 
  
 11.1 Authority. Seller is a corporation authorized to do business in Oregon. Seller has full power to execute, deliver and carry out the terms and
provisions of this Agreement and each of the other agreements, instruments and documents herein required to be made or delivered by Seller pursuant hereto, and have taken all necessary action to authorize the execution, delivery and performance of
this Agreement and such other agreements, instruments and documents. The individuals executing this Agreement and all other agreements, instruments and documents herein required to be made or delivered by Seller pursuant hereto on behalf of Seller
are and shall be duly authorized to sign the same on Seller’s behalf and to bind Seller thereto. 
  
 11.2 Enforceability. This Agreement has been, and each and all of the other agreements, instruments and documents herein required to be made by
Seller pursuant hereto have been, or on the Closing Date will have been, executed by Seller or on behalf of Seller, and when so executed, are and shall be legal, valid, and binding obligations of Seller enforceable against Seller in accordance with
their respective terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium, and other similar laws affecting the rights of creditors generally and, as to enforceability, the general principles of equity (regardless of whether
enforcement is sought in a proceeding in equity or at law). 
  
 11.3 No Conflict. To Seller’s knowledge, the execution and delivery of, and consummation of the transactions contemplated by this Agreement is not prohibited by, and will not conflict with, constitute grounds for termination of,
or result in the breach of any of the agreements or instruments to which Seller is now party or by which it is bound, or to Seller’s knowledge, any order, rule or regulation of any court or other governmental agency or official. 
  
 11.4 No Governmental Notice. Seller has received no written notice
from any governmental agency of any violation of any statute, law, ordinance, rule or regulation with respect to the Property. 
  
 11.5 No Litigation. To Seller’s knowledge, there is no pending or threatened litigation, condemnation proceeding, arbitration, administrative
proceeding, annexation proceeding or claims by third parties affecting the Property, and to Seller’s knowledge, there are no governmental assessments not disclosed herein or not disclosed in the Title Report or any agreements to convey any
portion of the Property, or any rights thereto, to any party other than Buyer, including, without limitation, any government or governmental agency. 
  

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 11.6 Non-Foreign Status. Seller is not a “foreign person” as that term is defined in
Section 1445 of the Internal Revenue Code. At Closing, Seller will execute and deliver a certification of non-foreign status on a form required by the Internal Revenue Service. 
  
 11.7 Hazardous Substances. To Seller’s knowledge, Seller has not received written notice from any governmental
agency that the Property or the building is in violation of any state or federal law or regulation regarding Hazardous Substances. Except as disclosed in the environmental reports listed on Exhibit “B” and any other environmental
reports referred to therein, Seller has no knowledge of the presence of substances on the Property or in the building which Seller has knowledge are classified as Hazardous Substances under state or federal laws and regulations. Many materials
contain asbestos and Seller has made no investigation as to whether any materials of which the building is constructed may contain asbestos. 
  
 All of the representations, warranties and covenants of the Seller contained in this Agreement (i) shall be true and correct as of the date of this
Agreement and as of the Closing Date, and (ii) such representations and warranties and covenants shall not be merged into those documents delivered by Seller at Closing. 
  
 12. Buyer’s Representations and Warranties. Buyer represents and warrants to Seller as follows: 
  
 12.1 Due Authorization. Buyer is a corporation authorized to do
business in Oregon. Buyer and Buyer’s assignees have full power to execute, deliver and carry out the terms and provisions of this Agreement and each of the other agreements, instruments and documents herein required to be made or delivered by
Buyer pursuant hereto, and have taken all necessary action to authorize the execution, delivery and performance of this Agreement and such other agreements, instruments and documents. The individuals executing this Agreement and all other
agreements, instruments and documents herein required to be made or delivered by Buyer pursuant hereto on behalf of Buyer are and shall be duly authorized to sign the same on Buyer’s behalf and to bind Buyer thereto. 
  
 12.2 Enforceability. This Agreement has been, and each and all of the
other agreements, instruments and documents herein required to be made by Buyer pursuant hereto have been, or on the Closing Date will have been, executed by Buyer or on behalf of Buyer, and when so executed, are and shall be legal, valid, and
binding obligations of Buyer enforceable against Buyer in accordance with their respective terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium, and other similar laws affecting the rights of creditors generally and, as to
enforceability, the general principles of equity (regardless of whether enforcement is sought in a proceeding in equity or at law). 
  
 12.3 No Conflict. To Buyer’s knowledge, the execution and delivery of, and consummation of the transactions contemplated by this Agreement is
not prohibited by, and will not conflict with, constitute grounds for termination of, or result in the breach of any of the agreements or instruments to which Buyer is now party or by which it is bound, or to Buyer’s knowledge, any order, rule
or regulation of any court or other governmental agency or official. 
  

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 12.4 Operation of Property. Buyer shall own and operate the Property after Closing in compliance
with all applicable laws and regulations. 
  
 13. AS-IS.
Except as is otherwise provided in this Agreement, the sale of the Property and the Personal Property as provided for herein is made on a strictly “AS-IS” “WHERE-IS” basis as of the Closing Date. Buyer expressly acknowledges
that, in consideration of the agreements of Seller herein, SELLER MAKES NO WARRANTY OR REPRESENTATION, EXPRESS OR IMPLIED, OR ARISING BY OPERATION OF LAW, INCLUDING, WITHOUT LIMITATION, ANY WARRANTY OF QUANTITY, QUALITY, CONDITION, HABITABILITY,
MERCHANTABILITY, SUITABILITY OR FITNESS FOR A PARTICULAR PURPOSE OF THE PROPERTY, ANY IMPROVEMENTS LOCATED THEREON OR ANY SOIL CONDITIONS RELATED THERETO. 
  
 14. Destruction, Loss or Diminution of Property. If, prior to Closing, all or any portion of the Property is damaged by fire or other natural
casualty (collectively “Damage”), or is taken or made subject to condemnation, eminent domain or other governmental acquisition proceedings (collectively “Eminent Domain”), then: 
  

	 	a.	If the aggregate cost of repair or replacement or the value of the Eminent Domain (collectively, “Repair and/or Replacement”) is One Hundred Thousand Dollars
($100,000) or less, in the opinion of Buyer’s and Seller’s respective engineering consultants, Buyer shall close and take the Property as diminished by such events with an assignment by Seller of any casualty insurance proceeds (together
with a credit from Seller to Buyer of the full amount of any deductible not paid directly by Seller) or condemnation proceeds and the payment by Seller to Buyer of any applicable deductible amounts. 

  

	 	b.	If the aggregate cost of Repair and/or Replacement is greater than One Hundred Thousand Dollars ($100,000), in the opinion of Buyer’s and Seller’s respective engineering
consultants, then Buyer, at its sole option, may elect either to (i) terminate this Agreement by written notice to Seller and receive an immediate return of the Earnest Money, together with all interest earned thereon, and neither party shall have
any further liability to the other hereunder, except for those liabilities that expressly survive a termination of this Agreement; or (ii) proceed to close and take the Property as diminished by such events, together with an assignment of the
proceeds of Seller’s casualty insurance (together with a credit from Seller to Buyer of the full amount of any deductible not paid directly by Seller) for all Damage (or condemnation awards for any Eminent Domain) and the payment by Seller to
Buyer of any applicable deductible amounts. 

  

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	 	c.	In the event of a dispute between Seller and Buyer with respect to the cost of Repair and/or Replacement with respect to the matters set forth in this Section 14, an engineer
designated by Seller and an engineer designated by Buyer shall select an independent engineer licensed to practice in the jurisdiction where the Property is located who shall resolve such dispute. All fees, costs and expenses of such third engineer
so selected shall be shared equally by Buyer and Seller. 

  
 15. Defaults Remedies. If the conditions, if any, to Buyer’s obligation to close this transaction are satisfied or waived by Buyer and Buyer nonetheless fails, through no fault of the Seller, to close the purchase of the
Property on or before the Closing Date, Buyer shall forfeit the Earnest Money to Seller as liquidated damages as Seller’s sole remedy, and this Agreement shall thereupon be null and void. If Seller fails to close the sale of the Property on or
before the Closing Date, through no fault of Buyer, Buyer may elect to either (a) terminate the Agreement and the Earnest Money shall be returned to Buyer, or (b) seek specific performance. BUYER AND SELLER ACKNOWLEDGE AND AGREE THAT (1) THE AMOUNT
OF THE EARNEST MONEY IS A REASONABLE ESTIMATE OF AND BEARS A REASONABLE RELATIONSHIP TO THE DAMAGES THAT WOULD BE SUFFERED AND COSTS INCURRED BY SELLER AS A RESULT OF HAVING WITHDRAWN THE PROPERTY FROM SALE AND THE FAILURE OF CLOSING TO HAVE
OCCURRED DUE TO A DEFAULT OF BUYER UNDER THIS AGREEMENT; (2) THE ACTUAL DAMAGES SUFFERED AND COSTS INCURRED BY SELLER AS A RESULT OF SUCH WITHDRAWAL AND FAILURE TO CLOSE DUE TO A DEFAULT OF BUYER UNDER THIS AGREEMENT WOULD BE EXTREMELY DIFFICULT AND
IMPRACTICAL TO DETERMINE; (3) BUYER SEEKS TO LIMIT ITS LIABILITY UNDER THIS AGREEMENT TO THE AMOUNT OF THE EARNEST MONEY IN THE EVENT THIS AGREEMENT IS TERMINATED AND THE TRANSACTION CONTEMPLATED BY THIS AGREEMENT DOES NOT CLOSE DUE TO A DEFAULT OF
BUYER UNDER THIS AGREEMENT; AND (4) THE AMOUNT OF THE EARNEST MONEY SHALL BE AND CONSTITUTE VALID LIQUIDATED DAMAGES. 
  
 16. Time of the Essence. TIME IS OF THE ESSENCE OF THIS AGREEMENT AND EACH PROVISION HEREOF. If any date for performance or delivery should be on a
Saturday, Sunday or legal holiday in Oregon, compliance shall be deemed acceptable on the next business day. 
  
 17. Assignment. Buyer shall not have the right to assign its right to purchase the Property under this Agreement without Seller’s prior
written consent, which may be withheld in Seller’s unfettered discretion. 
  
 18. Attorney Fees. In the event of any action to enforce or interpret this Agreement, or for any reason on account of any breach of this Agreement, the prevailing party in such action shall be entitled to
recover from the other party its costs, disbursements and reasonable attorney fees as determined to any the court in such action and in any appeal therefrom. 
  

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 19. Notice. All notices and communications in connection with this Agreement shall be given in
writing and shall be transmitted by facsimile (with receipt to follow by first class mail), by reputable overnight courier, to the appropriate party at its address set forth at the outset of this Agreement. Any notice so transmitted shall be deemed
effective on the date of delivery of a facsimile or the day following deposit by overnight courier. Either party may, by written notice, designate a different address for purposes of this Agreement. 
  
 20. Further Acts. The parties agree to execute and deliver such
additional documents, and perform such additional acts, as may be reasonably required to carry out the transaction provided for in this Agreement. 
  
 21. Broker. At the close of escrow, Seller shall pay from funds accruing to Seller through escrow a brokerage commission owed to the brokerage firm
of CRESA Partners (“Broker”) pursuant to a separate brokerage agreement. Buyer and Seller represent to each other that no other broker or finder has been engaged by Seller or Buyer in connection with any of the transactions
contemplated by this Agreement. Buyer and Seller each hereby indemnify, protect and defend and hold the other harmless from and against all losses, claims, costs, expenses and damages (including, without limitation, reasonable attorney’s fees)
resulting from the claims of any broker, finder or other such party, other than Broker, claiming by, through or under the acts or agreements of the indemnifying party. The obligations pursuant to this Section 21 shall survive any termination of this
Agreement. 
  
 22. Knowledge. Whenever the term knowledge
of Seller is used in this Agreement, it shall mean within the present conscious awareness of Larry Gardner without any duty to investigate or review his files or any files of Seller. 
  
 23. IRC Section 1031 Exchange. Either party may wish to complete an IRC Section 1031 Exchange in respect to the
Property. The parties shall cooperate in such exchange and shall execute all documents reasonably required by the other or its accommodator to effect such exchange. All expenses of drafting exchange documents and other expenses incident to the
exchange shall be paid by the party completing the exchange; provided, however, neither shall charge the other for execution or review of the exchange documents. 
  
 24. Confidentiality. Each party agrees to maintain in confidence, the information contained in this Agreement or
pertaining to the sale contemplated hereby and the information and data furnished or made available by Seller to Buyer, its agents and representatives in connection with Buyer’s investigation of the Property and the transactions contemplated by
the Agreement; provided, however, that each party, its agents and representatives may disclose such information and data (a) to such party’s accountants, attorneys, prospective lenders, investment bankers, underwriters, ratings agencies,
partners, consultants and other advisors in connection with the transactions contemplated by this Agreement (collectively, “Representatives”) to the extent that such Representatives reasonably need to know such information and data
in order to assist, and perform services on behalf of, Seller or Buyer; (b) to the extent required by any applicable statute, law, regulation or governmental authority; and (c) in connection with any litigation that may arise between the parties in
connection with the transactions contemplated by this Agreement. 
  

 -8- 

 25. Existing Lease. A portion of the Property is currently leased to In Focus. This lease expires
on December 31, 2004. Seller is currently negotiating with In Focus to renew the lease. Until this Agreement is closed or terminated, Buyer shall have the right and authority to negotiate with In Focus for renewal of the lease. Buyer shall keep
Seller informed of the proposed terms of the lease renewal with In Focus. Prior to Closing and prior to executing such lease renewal, Buyer shall give Seller ten (10) days to review the lease proposal and approve the terms. If Seller does not
approve the lease renewal, Buyer may terminate this Agreement and the earnest money shall be refunded to Buyer, or Buyer may elect to continue to negotiate a lease acceptable to Seller. Seller may not unreasonably withhold its approval to any lease
renewal with In Focus. 
  
 26. Buyer’s Release of
Seller. Except with respect to breach of the representations of Seller in Section 11, Buyer hereby expressly waives, releases and relinquishes any and all claims, causes of action, rights and remedies Buyer may now or hereafter have
against Seller or its Representatives, whether known or unknown, with respect to any past, present or future presence or existence of hazardous materials on, under or about the Property, and with respect to any past, present or future violations of
any rules, regulations or laws, now or hereafter enacted, regulating or governing the use, handling, storage, release or disposal of hazardous materials. The release by Buyer contained herein shall survive the Close of Escrow and the recordation of
the Deed and shall not be deemed merged into the Deed upon its recordation. 
  
 27. Right of First Refusal. At or before the Closing Date, Buyer shall execute an instrument in recordable form granting the right of first refusal in the Seller to repurchase the Property from the Buyer in the
event the Buyer ever decides to sell the Property to an unrelated third party. The right of first refusal provisions, among other things, will provide for sixty (60) days’ notice to Seller of Buyer’s intent to sell the Property. Such
notice shall include a form of Purchase and Sale Agreement. Seller shall have the right during this sixty (60) day period to accept the terms and provisions of the Purchase and Sale Agreement. In the event Seller does not do so, Buyer shall be
permitted to sell the property on the terms and provisions set forth in the Purchase and Sale Agreement for the next 180 days without reoffering to the Seller. In the event any offer is made on material terms different than as set forth in the
Purchaser and Sale Agreement, Buyer shall reoffer the Property to the Seller at the new terms and the same process shall be followed with respect to that offer as for the original offer. 
  
 28. Easements/Abandoning Communication Conduits. Agreements which grant the easements described in Sections 28.1 and
28.2 shall be negotiated during the Approval Period. If, during the Approval Period, agreement is not reached to Buyer’s satisfaction, Buyer may terminate this Agreement. 
  
 28.1 Storm Water. At Closing, Seller and Buyer shall execute a storm water easement granting Buyer the right to
transmit storm water collecting on the Property across storm sewer lines presently located on the Property and extending on to other real property owned by Seller, draining into a storm water collection pond on such other real property. This
easement agreement shall obligate Buyer to exercise due care in the operation of such storm drainage system and indemnify, defend and hold Seller harmless from damage to Seller’s real property, its drainage system and pond and from any claims,
demands, suits or actions arising from Buyer’s use of the drainage system, including, without limitation, any environmental contamination of any property from hazardous materials emanated or released on the Property. 
  

 -9- 

 28.2 Roadway Access Easements. Driveways over Seller’s other real property provides access to
certain portions of the Property. During the Approval Period, the parties shall negotiate any access easements which are deemed by them to be reasonably necessary, and such easements shall be executed at Closing. 
  
 28.3 Communication Conduits. There are currently several communication
conduits between the building on the Property and the buildings on other real property owned by Seller. Seller shall pull wiring from the conduits, and the outlet at the building on the Property and the outlet on other buildings owned by Seller
shall be plugged. 
  
 29. Entire Agreement. This written
Agreement sets forth the entire understanding of the parties with respect to the purchase and sale of the Property. This Agreement supersedes any and all prior negotiations, discussions, agreements and understandings between the parties. This
Agreement may not be modified or amended except by a written agreement executed by both parties. 
  
 30. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Oregon. 
  
 31. Partial Invalidity. The provisions hereof shall be deemed
independent and severable, and the invalidity or partial invalidity or enforceability of any one provision shall not affect the validity of enforceability of any other provision hereof. 
  
 32. No Recording. Neither this Agreement nor any memorandum thereof shall be recorded and the act of recording by
Buyer shall be deemed a default by Buyer hereunder. 
  
 33.
Counterparts. This Agreement may be executed in multiple counterparts and shall be valid and binding with the same force and effect as if all parties had executed the same Agreement. 
  
 34. Construction of Agreement. In construing this Agreement, all
headings and titles are for the convenience of the parties only and shall not be considered a part of this Agreement. Whenever required by the context, the singular shall include the plural and the masculine shall include the feminine and vice
versa. This Agreement shall not be construed as if prepared by one of the parties, but rather according to its fair meaning as a whole, as if both parties had prepared it. All Exhibits attached hereto are incorporated in this Agreement by reference
thereto. 
  
 35. No Oral Modification or Waiver. This
Agreement may not be changed or amended orally, but only by an agreement in writing. No waiver shall be effective hereunder unless given in writing, and waiver shall not be inferred from any conduct of either party. 
  
 36. Survival. The provisions of Sections 11, 12, 13, 18, 20, 21, 22,
24, 26 and 27 shall survive the Closing. 
  

 -10- 

 37. Binding Effect. This Agreement shall be binding on and shall inure to the benefit of the
permitted successors and assigns of the parties to it. 
  
 THE PROPERTY DESCRIBED
IN THIS INSTRUMENT MAY NOT BE WITHIN A FIRE PROTECTION DISTRICT PROTECTING STRUCTURES. THE PROPERTY IS SUBJECT TO LAND USE LAWS AND REGULATIONS, WHICH, IN FARM OR FOREST ZONES, MAY NOT AUTHORIZE CONSTRUCTION OR SITING OF A RESIDENCE AND WHICH LIMIT
LAWSUITS AGAINST FARMING OR FOREST PRACTICES AS DEFINED IN ORS 30.930 IN ALL ZONES. BEFORE SIGNING OR ACCEPTING THIS INSTRUMENT, THE PERSON ACQUIRING FEE TITLE TO THE PROPERTY SHOULD CHECK WITH THE APPROPRIATE CITY OR COUNTY PLANNING DEPARTMENT TO
VERIFY APPROVED USES AND EXISTENCE OF FIRE PROTECTION FOR STRUCTURES. 
  

					
	SELLER	 	MENTOR GRAPHICS CORPORATION,
	 	 	an Oregon corporation,
			
	 	 	By:	  	 /s/ Larry A. Gardner

	 	 	Name:	  	Larry A. Gardner
	 	 	Title:	  	Director of Worldwide Facilities
		
	BUYER	 	FLIR SYSTEMS, INC.,
	 	 	an Oregon corporation
			
	 	 	By:	  	 /s/ William Sundermeier

	 	 	Name:	  	William Sundermeier
	 	 	Title:	  	President, Imaging Systems

  

 -11- 

 EXHIBIT “A” 
  
 Real Property Description 
  
 [To be attached] 
  

 EXHIBIT “A” 
 -1- 

 EXHIBIT “B” 
  
 Review Documents 
  

	•	Kelly/Strazer geotechnical (including hazardous waste) investigation of the entire site dated September 19, 1988 

  

	•	Groundwater sampling and analysis report from CH2M Hill dated April 14, 1994 

  

	•	Stream baseline study by CH2M Hill dated March 1993 

  

	•	Groundwater baseline study by CH2M Hill dated March 1993 

  

	•	Motif Interior baseline study by CH2M Hill dated March 1993 

  

	•	Groundwater Investigation study by CH2M Hill dated October 1993 

  

	•	Results of groundwater sampling and water level measurement from CH2M Hill dated January 6, 1995 

  

	•	Groundwater and sampling report by CH2M Hill dated May 2, 1996 

  

	•	Partial operating costs for the last 3 years (nearly all expenses are paid by In Focus) 

  

	•	Tax statements for the last 3 years 

  

	•	Complete set of construction drawings (not as-builts) 

  

	•	Grounds service contract for the entire site (Forest Building is not broken out) 

  

	•	Occupancy permits (several) 

  

	•	Building permits (several) 

  

	•	Any recorded easement benefiting or burdening the Property 

  

	•	All HVAC and other service contracts in respect to the Property to which Seller is a party 

  

	•	A vendor list of material and service providers in respect to operation of the Property by Seller 

  

	•	An ALTA Survey of the Property covering current Property lines or those anticipated after the partition 

  

 EXHIBIT “B” 
 -1- 

 EXHIBIT “C” 
  
 Personal Property 
  
 Aproximate quantities 
 The following is confirmation of inventory in Bldg. F:

  

			
	34	 	Desks
	1	 	Secretary return desk
	66	 	conference chairs
	30	 	desk chairs
	10	 	conference tables
	680	 	partitions
	168	 	hanging files
	100	 	warehouse racks

  

 EXHIBIT “C” 
 -1-

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