Document:

Tax Protection Agreement

 Exhibit 10.2 
 TAX PROTECTION AGREEMENT 
 THIS TAX PROTECTION AGREEMENT (this
“Agreement”) is made and entered into as of May 13, 2011 by and among THE GC NET LEASE REIT, INC. (the “REIT”), THE GC NET LEASE REIT OPERATING PARTNERSHIP, L.P. (the “Partnership”), each of the Contributors listed
on Exhibit A (each a “Contributor” and collectively, the “Contributors”) and each of the Protected Partners listed on Schedule 2.1(a) (each a “Protected Partner” and, collectively, the “Protected
Partners”). 
 WHEREAS, pursuant to that certain Contribution Agreement – Carlsbad Property, dated of even date
herewith (the “Contribution Agreement”), the Contributors transferred to a wholly-owned subsidiary of the Partnership all of the Contributors’ percentage undivided co-tenancy interests in the Carlsbad Property, as identified in such
Contribution Agreement, in exchange for the Protected Partners’ receipt of the total number of units of limited partnership interest in the Partnership (the “Units”) set forth on Exhibit B to the Contribution Agreement (the
“Transaction”); 
 WHEREAS, it is intended for federal income tax purposes that the Transaction be treated as a
contribution by the Protected Partners of all of the contributed assets to the Partnership in exchange for partnership interests under Section 721 of the Internal Revenue Code of 1986, as amended (the “Code”); 

WHEREAS, in accordance with Section 3.2(b) of the Contribution Agreement and in consideration for the agreement of the Contributors
and the Protected Partners to consummate the Transaction, the parties hereto desire to enter into this Agreement regarding certain tax matters associated with the Transaction; and 

WHEREAS, the REIT and the Partnership desire to evidence their agreement regarding amounts that may be payable as a result of certain
actions being taken by the Partnership regarding the disposition of certain of the contributed assets and certain debt obligations of the Partnership and its subsidiaries. 
 NOW, THEREFORE, in consideration of the premises and the mutual representations, warranties, covenants and agreements contained herein and in the Contribution Agreement, the parties hereto hereby agree as
follows: 
 ARTICLE 1 
 DEFINITIONS 
 To the extent not otherwise defined herein, capitalized terms
used in this Agreement have the meanings ascribed to them in the Partnership Agreement (as defined below). 
 “Closing
Date” means the closing date of the Transaction. 
 “Code” means the Internal Revenue Code of 1986, as
amended. 
 “Consent” means the prior written consent to do the act or thing for which the consent is required
or solicited, which consent may be executed by a duly authorized officer or agent of the party granting such consent. 

“Guaranteed Amount” means the aggregate amount of each Guaranteed Debt that is guaranteed at any time by Partner
Guarantors. 

 “Guaranteed Debt” means any loans incurred (or assumed) by the Partnership
or any of its subsidiaries that are guaranteed by Partner Guarantors at any time after the Closing Date pursuant to Article 3 hereof. 
 “Minimum Liability Amount” means, for each Protected Partner, the amount set forth on Schedule 3.1 hereto next to such Protected Partner’s name. 

“Nonrecourse Liability” has the meaning set forth in Treasury Regulations § 1.752-1(a)(2). 

“Partner Guarantors” means those Protected Partners who have guaranteed any portion of the Guaranteed Debt. The Partner
Guarantors and each Partner Guarantor’s dollar amount share of the Guaranteed Amount with respect to the Guaranteed Debt is zero as of the Closing Date and will be set forth on Exhibit B to Schedule 3.7 hereto, as may be
amended from time to time. 
 “Partnership” means The GC Net Lease REIT Operating Partnership, L.P., a Delaware
limited partnership. 
 “Partnership Agreement” means the Amended and Restated Agreement of Limited Partnership
of The GC Net Lease REIT Operating Partnership, L.P., dated as of June 18, 2009, as the same may be amended in accordance with the terms thereof. 
 “Protected Gain” shall mean the gain that would be allocable to and recognized by a Protected Partner under Section 704(c) of the Code in the event of the sale of a Protected
Property in a fully taxable transaction (excluding its corresponding share of “book gain,” if any). The initial amount of Protected Gain with respect to each Protected Partner shall be determined as if the Partnership sold a Protected
Property in a fully taxable transaction on the Closing Date for consideration equal to the Section 704(c) Value of such Protected Property on the Closing Date. Estimated initial Protected Gain assuming an April 15, 2011 closing is set
forth on Schedule 2.1(b) hereto. Gain that would be allocated to a Protected Partner upon a sale of a Protected Property that is “book gain” (for example, gain attributable to appreciation in the actual value of the Protected
Property following the Closing Date or gain resulting from reductions in the “book value” of the Protected Property following the Closing Date) would not be considered Protected Gain. (As used in this definition, “book gain” is
any gain that would not be required under Section 704 (c) of the Code and the applicable regulations to be specially allocated to the Protected Partners, but rather would be allocated to all partners in the Partnership, including the REIT,
in accordance with the Partnership Agreement.) 
 “Protected Partner” means those persons set forth on
Schedule 2.1(a) hereto as “Protected Partners,” any person who acquires Units from a Protected Partner in a transaction in which gain or loss is not recognized in whole or in part and in which such transferee’s adjusted
basis, as determined for federal income tax purposes, is determined in whole or in part by reference to the adjusted basis of a Protected Partner in such Units. 
 “Protected Property” means (i) the property identified in the Contribution Agreement as the Carlsbad Property; (ii) any other properties or assets hereafter acquired by the
Partnership or direct or indirect interest owned by the Partnership in any Subsidiary that owns an interest in a Protected Property, if the disposition of such properties, assets or interest would result in the recognition of Protected Gain with
respect to the Protected Property by a Protected Partner; and (iii) any other property that the Partnership directly or indirectly receives that is in whole or in part a “substituted basis property” as defined in
Section 7701(a)(42) of the Code with respect to the Protected Property. 
 “Qualified Guarantee” has the
meaning set forth in Section 3.2. 

  
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 “Qualified Guarantee Indebtedness” has the meaning set forth in
Section 3.2. 
 “Section 704(c) Value” means the fair market value of the Protected Property as
agreed to by the Partnership and the Protected Partners . For purposes of this Agreement, the aggregate Section 704(c) Value for the Protected Property contributed to the Partnership by the Protected Partners in the Transaction will be the
agreed value of the Units to be issued in the Transaction plus the mortgage debt secured by or allocable to the Protected Property outstanding on the Closing Date. The Section 704(c) Value for the Protected Property shall be as determined by
agreement between the Protected Partners and the Partnership pursuant to this Agreement. The Partnership shall initially carry the Protected Property on its books at a value equal to the Section 704(c) Value as set forth above. 

“Subsidiary” means any entity in which the Partnership owns a direct or indirect interest that owns the Protected
Property on the Closing Date, after giving effect to the Transaction, or that thereafter is a successor to the Partnership’s direct or indirect interests in the Protected Property. 

“Tax Protection Period” means the period commencing on the Closing Date and ending at 12:01 AM on
the tenth (10th) anniversary of the Closing Date;
provided, however, that with respect to a Protected Partner, the Tax Protection Period shall terminate at such time as such Protected Partner disposes of 50% or more of the Units received, directly or indirectly, in the Transaction by
such Protected Partner and gain or loss is fully recognized as a result of such disposition. 
 “Units” means
units of limited partnership interest of the Partnership, as described in the Partnership Agreement. 
 ARTICLE 2

 RESTRICTIONS ON DISPOSITIONS OF 
 THE PROTECTED PROPERTY 

2.1        General Prohibition on Disposition of Protected
Property. The Partnership agrees for the benefit of each Protected Partner, for the term of the Tax Protection Period, not to directly or indirectly sell, exchange, transfer, or otherwise dispose of the Protected Property or any
interest therein (without regard to whether such disposition is voluntary or involuntary) in a transaction that would cause any of the Protected Partners to recognize any Protected Gain. Without limiting the foregoing, the term “sale, exchange,
transfer or disposition” by the Partnership shall be deemed to include, and the prohibition shall extend to: 

  (a)        any direct or indirect disposition by any direct or indirect Subsidiary of
the Protected Property or any interest therein; 
   (b)        any direct or
indirect disposition by the Partnership of the Protected Property (or any direct or indirect interest therein) that is subject to Section 704(c)(1)(B) of the Code and the Treasury Regulations thereunder; and 

  (c)        any distribution by the Partnership to a Protected Partner that is subject
to Section 737 of the Code and the Treasury Regulations thereunder; 
 Without limiting the foregoing, a disposition shall
include any transfer, voluntary or involuntary, by the Partnership or any Subsidiary in a foreclosure proceeding, pursuant to a deed in lieu of foreclosure, or in a bankruptcy proceeding. 

  
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 Notwithstanding the foregoing, this Section 2.1 shall not apply to a voluntary, actual
disposition by a Protected Partner of Units in connection with a merger or consolidation of the Partnership pursuant to which (1) the Protected Partner is offered either cash or property treated as cash pursuant to Section 731 of the Code
(“Cash Consideration”) or partnership interests in a partnership that would be treated as the continuing partnership under the principles of Section 708 of the Code and the receipt of such partnership interests would not result in the
recognition of gain for federal income tax purposes by the Protected Partner (“Partnership Interest Consideration”); (2) the Protected Partner has the ability to elect to receive solely Partnership Interest Consideration in exchange
for his Units and the continuing partnership has agreed in writing to assume the obligations of the Partnership under this Agreement; (3) no Protected Gain is recognized by the Partnership as a result of any partner of the Partnership receiving
Cash Consideration; and (4) the Protected Partner elects to receive Cash Consideration. 

2.2        Exceptions Where No Gain Recognized. Notwithstanding the
restriction set forth in Section 2.1, the Partnership or any Subsidiary may dispose of any Protected Property (or any interest therein) if such disposition qualifies as a like-kind exchange under Section 1031 of the Code, or an involuntary
conversion under Section 1033 of the Code, or other transaction (including, but not limited to, a contribution of property to any entity that qualifies for the non-recognition of gain under Section 721 or Section 351 of the Code, or a
merger or consolidation of the Partnership with or into another entity that qualifies for taxation as a “partnership” for federal income tax purposes (a “Successor Partnership”)) that, as to each of the foregoing, does not result
in the recognition of any taxable income or gain to any Protected Partner with respect to any of the Units; provided, however, that: 
   (a)        in the case of a Section 1031 like-kind exchange, if such exchange is with a “related party” within the meaning of
Section 1031(f)(3) of the Code, any direct or indirect disposition by such related party of the Protected Property or any other transaction prior to the expiration of the two (2) year period following such exchange that would cause
Section 1031(f)(1) to apply with respect to such Protected Property (including by reason of the application of Section 1031(f)(4)) shall be considered a violation of Section 2.1 by the Partnership; and 

  (b)        in the event that at the time of the exchange or other disposition the
Protected Property is secured, directly or indirectly, by indebtedness that is guaranteed by a Protected Partner (or for which a Protected Partner otherwise has personal liability) and that is not then in default and the transferee is not a
Subsidiary of the Partnership that both is more than 50% owned, directly or indirectly, by the Partnership and is and will continue to be under the legal control of the Partnership (which shall include a partnership or limited liability company in
which the Partnership or a wholly owned subsidiary of the Partnership is the sole managing general partner or sole managing member, as applicable), (i) either (A) such indebtedness shall be repaid in full or (B) the Partnership shall
obtain from the lenders with respect to such indebtedness a full and complete release of liability for each of the Protected Partners that has guaranteed, or otherwise has liability for, such indebtedness, and (ii) if such indebtedness is a
Guaranteed Debt and the Tax Protection Period shall not have expired, the Partnership shall comply with its covenants set forth in Article 3 below with respect to such Guaranteed Debt and the Partner Guarantors that are considered to have
liability for such Guaranteed Debt (determined under Section 3.4 treating such events as a repayment of the Guaranteed Debt). 
 The taxes payable by any such Protected Partner shall equal the sum of the highest federal income tax rate applicable to such Protected Gain based upon its characterization in the year of disposition plus
the highest income rates, if any, which such Protected Gain is subject to in the hands of such Protected Partner, times such Protected Partner’s share of such Protected Gain. 

  
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 ARTICLE 3 
 ALLOCATION OF LIABILITIES; 
 GUARANTEE OPPORTUNITY 

3.1        Minimum Liability Allocation. During the Tax Protection
Period, the Partnership will offer to each Protected Partner the opportunity to enter into Qualified Guarantees of Qualified Guarantee Indebtedness in such amount or amounts so as to cause the amount of partnership liabilities allocated to such
Protected Partner for purposes of Section 752 of the Code to be not less than such Protected Partner’s Minimum Liability Amount, as provided in this Article 3. In order to minimize the need for Protected Partners to enter into
Qualified Guarantees, the Partnership will use the optional method under Treasury Regulations Section 1.752-3(a)(3) to allocate Nonrecourse Liabilities considered secured by a Protected Property to the Protected Partners to the extent that the
“built-in gain” with respect to those properties exceeds the amount of the Nonrecourse Liabilities considered secured by such Protected Property allocated to the Protected Partners under Treasury Regulations Section 1.752-3(a)(2).

 3.2        Qualified Guarantee Indebtedness and Qualified Guarantee;
Treatment of Qualified Guarantee Indebtedness as Guaranteed Debt. In order for an offer by the Partnership of an opportunity to guarantee indebtedness to satisfy the requirements of this Article 3, (i) the indebtedness to be
guaranteed must satisfy all of the conditions set forth in this Section 3.2 (indebtedness satisfying all such conditions is referred to as “Qualified Guarantee Indebtedness”); (ii) the guarantee by the Partner Guarantors must be
pursuant to a Guarantee Agreement substantially in the form attached hereto as Schedule 3.7 that satisfies the conditions set forth in Sections 3.2(a) and (c) (a “Qualified Guarantee”); (iii) the amount of debt required
to be guaranteed by the Partner Guarantor must not exceed the portion of the Guaranteed Amount for which a replacement guarantee is being offered; and (iv) the debt to be guaranteed must be considered indebtedness of the Partnership for
purposes of determining the adjusted tax basis of the interests of partners in the Partnership in their partnership interests. If, and to the extent that, a Partner Guarantor elects to guarantee Qualified Guarantee Indebtedness pursuant to an offer
made in accordance with this Article 3, such indebtedness thereafter shall be considered a Guaranteed Debt and subject to all of this Article 3. The conditions that must be satisfied at all times with respect to any additional or
replacement Guaranteed Debt offered pursuant to this Article 3 hereof and the guarantees with respect thereto are as follows: 
   (a)        each such guarantee shall be a “bottom dollar guarantee” in that the lender for the Guaranteed Debt is required to pursue all other
collateral and security for the Guaranteed Debt (other than any “bottom dollar guarantees” permitted pursuant to this Article 3) prior to seeking to collect on such a guarantee, and the lender shall have recourse against the guarantee only
if, and solely to the extent that, the total amount recovered by the lender with respect to the Guaranteed Debt after the lender has exhausted its remedies as set forth above is less than the aggregate of the Guaranteed Amounts with respect to such
Guaranteed Debt (plus the aggregate amounts of any other guarantees (x) that are in effect with respect to such Guaranteed Debt at the time the guarantees pursuant to this Article 3 are entered into, or (y) that are entered into after
the date the guarantees pursuant to this Article 3 are entered into with respect to such Guaranteed Debt and that comply with Section 3.5 below, but only to the extent that, in either case, such guarantees are “bottom dollar
guarantees” with respect to the Guaranteed Debt), and the maximum aggregate liability of each Partner Guarantor for all Guaranteed Debt shall be limited to the amount actually guaranteed by such Partner Guarantor; 

  (b)        the fair market value of the collateral against which the lender has
recourse pursuant to the Guaranteed Debt, determined as of the time the guarantee is entered into (an independent appraisal relied upon by the lender in making the loan shall be conclusive evidence of such fair market value when the guarantee is
being entered into in connection with the closing of such loan), shall not be less than 150% of the sum of (1) the aggregate of the Guaranteed Amounts with respect to such 

  
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Guaranteed Debt, plus (2) the dollar amount of any other indebtedness that is senior to or pari passu with the Guaranteed Debt and as to which the lender thereunder has recourse against
property that is collateral of the Guaranteed Debt, plus (3) the aggregate amounts of any other guarantees that are in effect with respect to such Guaranteed Debt at the time the guarantees pursuant to this Article 3 are entered into with
respect to such Guaranteed Debt and that comply with Section 3.2(e) below, but only to the extent that such guarantees are “bottom dollar guarantees” with respect to the Guaranteed Debt); 

  (c)        (1) the executed guarantee must be delivered to the lender and
(2) the execution of the guarantee by the Partner Guarantors must be acknowledged by the lender as an inducement to it to make a new loan, to continue an existing loan (which continuation is not otherwise required), or to grant a material
Consent under an existing loan (which Consent is not otherwise required to be granted) or, alternatively, the guarantee otherwise must be enforceable under the laws of the state governing the loan and in which the property securing the loan is
located or in which the lender has a significant place of business (with any bona fide branch or office of the lender through which the loan is made, negotiated, or administered being deemed a “significant place of business” for the
purposes hereof); 
   (d)        as to each Partner Guarantor that is
executing a guarantee pursuant to this Agreement, there must be no other Person that would be considered to “bear the economic risk of loss,” within the meaning of Treasury Regulation § 1.752-2, or would be considered to be
“at risk” for purposes of Section 465(b) with respect to that portion of such debt for which such Partner Guarantor is being made liable for purposes of satisfying the Partnership’s obligations to such Partner Guarantor under
this Article 3; 
   (e)        the aggregate Guaranteed Amounts with
respect to the Guaranteed Debt will not exceed 25% of the amount of the Guaranteed Debt outstanding at the time the guarantee is executed. Except for guarantees already in place at the time a guarantee opportunity is presented to the Protected
Partners, at no time can there be guarantees with respect to the Guaranteed Debt that are provided by other persons that are “pari passu” with or at a lower level of risk than the guarantees provided by the Protected Partners. If there are
guarantees already in place at the time a guarantee opportunity is presented to the Protected Partners that are “pari passu” with or at a lower level of risk than the guarantees provided by the Protected Partners, then the amount of
Guaranteed Debt subject to such existing guarantees shall be added to the Guaranteed Amount for purposes of calculating the 25% limitation set forth in this Section 3.2(e); and 

  (f)        the obligor with respect to the Guaranteed Debt is the Partnership or an
entity which is and will continue to be under the legal control of the Partnership (which shall include a partnership or limited liability company in which the Partnership or a wholly-owned subsidiary of the Partnership is the sole managing general
partner or sole managing member, as applicable). 
 3.3        Covenant
With Respect to Guaranteed Debt Collateral. The Partnership covenants with the Partner Guarantors with respect to the Guaranteed Debt that (i) it will comply with the requirements set forth in Section 2.2(b) upon any
disposition of any collateral for a Guaranteed Debt, whether during or following the Tax Protection Period, and (ii) it will not at any time, whether during or following the Tax Protection Period, pledge the collateral with respect to a
Guaranteed Debt to secure any other indebtedness (unless such other indebtedness is, by its terms, subordinate in all respects to the Guaranteed Debt for which such collateral is security) or otherwise voluntarily dispose of or reduce the amount of
such collateral unless either (A) after giving effect thereto the conditions in Section 3.2(b) would continue to be satisfied with respect to the Guaranteed Debt and the Guaranteed Debt otherwise would continue to be Qualified
Guarantee Indebtedness, or (B) the Partnership (x) obtains from the lender with respect to the original Guaranteed Debt a full and complete release of any Partner Guarantor unless the Partner Guarantor expressly requests that it not be
released, and (y) if the Tax 

  
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Protection Period has not expired, offers to each Partner Guarantor with respect to such original Guaranteed Debt, not less than 30 days prior to such pledge or disposition, the opportunity
to enter into a Qualified Guarantee of other Partnership indebtedness that constitutes Qualified Guarantee Indebtedness (with such replacement indebtedness thereafter being considered a Guaranteed Debt and subject to this Article 3) in an
amount equal to the amount of such original Guaranteed Debt that was guaranteed by such Partner Guarantor. 

3.4        Repayment or Refinancing of Guaranteed Debt. The Partnership
shall not, at any time during the Tax Protection Period applicable to a Partner Guarantor, repay or refinance all or any portion of any Guaranteed Debt unless (i) after taking into account such repayment, each Partner Guarantor would be
entitled to include in its basis for its Units an amount of Guaranteed Debt equal to its Minimum Liability Amount, or (ii) alternatively, the Partnership, not less than 30 days prior to such repayment or refinancing, offers to the
applicable Partner Guarantors the opportunity to enter into a Qualified Guarantee with respect to other Qualified Guarantee Indebtedness in a sufficient amount so that the Partner would be entitled to include in its adjusted tax basis of its Units
Guaranteed Debt equal to the Minimum Liability Amount for such Partner Guarantor. 

3.5        Limitation on Additional Guarantees With Respect to Debt Secured by
Collateral for Guaranteed Debt. The Partnership shall not offer the opportunity or make available to any person or entity other than a Protected Partner a guarantee of any Guaranteed Debt or other debt that is secured, directly or
indirectly, by any collateral for Guaranteed Debt unless (i) such debt by its terms is subordinate in all respects to the Guaranteed Debt or, if such other guarantees are of the Guaranteed Debt itself, such guarantees by their terms must be
paid in full before the lender can have recourse to the Partner Guarantors (i.e., the first dollar amount of recovery by the applicable lenders must be applied to the Guaranteed Amount); provided that the foregoing shall not apply with respect to
additional guarantees of Guaranteed Debt so long as the conditions set forth in Sections 3.2(b) and (e) would be satisfied immediately after the implementation of such additional guarantee (determined in the case of Section 3.2(b),
based upon the fair market value of the collateral for such Guaranteed Debt at the time the additional guarantee is entered into and adding the amount of such additional guarantee(s) to the sum of the applicable Guaranteed Amounts plus any other
preexisting “bottom dollar guarantee” previously permitted pursuant to this Section 3.5 or Sections 3.2(a) and (b) above, for purposes of making the computation provided for in Section 3.2(b)), and (ii) such other
guarantees do not have the effect of reducing the amount of the Guaranteed Debt that is includible by any Partner Guarantor in its adjusted tax basis for its Units pursuant to Treasury Regulation § 1.752-2. 

3.6        Process. Whenever the Partnership is required under this
Article 3 to offer to one or more of the Partner Guarantors an opportunity to guarantee Qualified Guarantee Indebtedness, the Partnership shall be considered to have satisfied its obligation if the other conditions in this Article 3 are
satisfied and, not less than thirty (30) days prior to the date that such guarantee would be required to be executed in order to satisfy this Article 3, the Partnership sends by first class mail, return receipt requested, to the last known
address of each such Partner Guarantor (as reflected in the records of the Partnership) the Guarantee Agreement to be executed (which in the case of Guarantee Agreement shall be substantially in the form of Schedule 3.7 hereto, with such
changes thereto as are necessary to reflect the relevant facts) and a brief letter explaining the relevant circumstances (including, as applicable, that the offer is being made pursuant to this Article 3, the circumstances giving rise to the
offer, a brief summary of the terms of the Qualified Guarantee Indebtedness to be guaranteed, a brief description of the collateral for the Qualified Guarantee Indebtedness, a statement of the amount to be guaranteed, the address to which the
executed Guarantee Agreement must be sent and the date by which it must be received, and a statement to the effect that, if the Protected Partner fails to execute and return such Agreement within the time period specified, the Partner Guarantor
thereafter would lose its rights under this Article 3 with respect to the amount of debt that the Partnership is required to offer to be guaranteed, and depending 

  
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upon the Partner Guarantor’s circumstances and other circumstances related to the Partnership, the Partner Guarantor could be required to recognize taxable gain as a result thereof, either
currently or prior to the expiration of the Tax Protection Period, that otherwise would have been deferred). If a notice is properly sent in accordance with this procedure, the Partnership shall have no responsibility as a result of the failure of a
Partner Guarantor either to receive such notice or to respond thereto within the specified time period. 

3.7        Presumption as to Schedule 3.7. The form of the
Guarantee Agreement attached hereto as Schedule 3.7 shall be conclusively presumed to satisfy the conditions set forth in Section 3.2(a) and to have caused the Guaranteed Debt to be considered allocable to the Guarantor Partner who
enters into such Guarantee Agreement pursuant to Treasury Regulation § 1.752-2 and Section 465 of the Code so long as all of the following conditions are met with respect to such Guaranteed Debt: 

  (a)        there are no other guarantees in effect with respect to such Guaranteed
Debt (other than the guarantees contemporaneously being entered into by the Partner Guarantors pursuant to this Article 3); 
   (b)        the collateral securing such Guaranteed Debt is not, and shall not thereafter become, collateral for any other indebtedness that is senior to
or pari passu with such Guaranteed Debt; 
   (c)        no additional
guarantees with respect to such Guaranteed Debt will be entered into during the applicable Tax Protection Period pursuant to the proviso set forth in Section 3.5; 
   (d)        the lender with respect to such Guaranteed Debt is not the Partnership, any Subsidiary or other entity in which the Partnership owns a direct
or indirect interest, the REIT, any other partner in the Partnership, or any person related to any partner in the Partnership as determined for purposes of Treasury Regulation § 1.752-2 or any person that would be considered a
“related party” as determined for purposes of Section 465 of the Code; and 

  (e)        none of the REIT, nor any other partner in the Partnership, nor any person
related to any partner in the Partnership as determined for purposes of Treasury Regulation § 1.752-2 shall have provided, or shall thereafter provide, collateral for, or otherwise shall have entered into, or shall thereafter enter into, a
relationship that would cause such person or entity to be considered to bear the risk of loss with respect to such Guaranteed Debt, as determined for purposes of Treasury Regulation § 1.752-2 or that would cause such entity to be
considered “at risk” with respect to such Guaranteed Debt, as determined for purposes of Section 465 of the Code. 

ARTICLE 4 

REMEDIES FOR BREACH 
 4.1        Monetary Damages. In the event that the Partnership breaches its obligations set forth in Article 2, Article 3, or
Article 6 with respect to a Protected Partner, the Protected Partner’s sole right shall be to receive from the Partnership, and the Partnership shall pay to such Protected Partner as damages, an amount equal to: 

  (a)        in the case of a violation of Articles 3 or 6, the aggregate federal,
state and local income taxes incurred by the Protected Partner as a result of the income or gain allocated to, or otherwise recognized by, such Protected Partner with respect to its Units by reason of such breach; and 

  
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   (b)        in the case of a violation of
Article 2, the aggregate federal state, and local income taxes incurred with respect the Protected Gain incurred with respect to the Protected Property that is allocable to such Protected Partner under the Partnership Agreement; 

plus in the case of either (a) or (b), an amount equal to the aggregate federal, state, and local income taxes payable by the Protected Partner as a
result of the receipt of any payment required under this Section 4.1. 
 For purposes of computing the amount of federal,
state, and local income taxes required to be paid by a Protected Partner, (i) any deduction for state income taxes payable as a result thereof actually allowed in computing federal income taxes shall be taken into account, and (ii) a
Protected Partner’s tax liability shall be computed using the highest federal, state and local marginal income tax rates that would be applicable to such Protected Partner’s taxable income (taking into account the character and type of
such income or gain) for the year with respect to which the taxes must be paid, without regard to any deductions, losses or credits that may be available to such Protected Partner that would reduce or offset its actual taxable income or actual tax
liability if such deductions, losses or credits could be utilized by the Protected Partner to offset other income, gain or taxes of the Protected Partner, either in the current year, in earlier years, or in later years. 

4.2        Process for Determining Damages. If the Partnership has
breached or violated any of the covenants set forth in Article 2, Article 3 or Article 6 (or a Protected Partner asserts that the Partnership has breached or violated any of the covenants set forth in Article 2, Article 3 or
Article 6), the Partnership and the Protected Partner agree to negotiate in good faith to resolve any disagreements regarding any such breach or violation and the amount of damages, if any, payable to such Protected Partner under
Section 4.1 (and to the extent applicable, Section 4.4). If any such disagreement cannot be resolved by the Partnership and such Protected Partner within sixty (60) days after the receipt of notice from the Partnership of such breach
and the amount of income to be recognized by reason thereof, the Partnership and the Protected Partner shall jointly retain a nationally recognized independent public accounting firm (an “Accounting Firm”) to act as an arbitrator to
resolve as expeditiously as possible all points of any such disagreement (including, without limitation, whether a breach of any of the covenants set forth Article 2, Article 3, Article 6 or Article 7 has occurred and, if so, the
amount of damages to which the Protected Partner is entitled as a result thereof, determined as set forth in Section 4.1 (and to the extent applicable, Section 4.4). All determinations made by the Accounting Firm with respect to the
resolution of any breach or violation of any of the covenants set forth in Article 2, Article 3 or Article 6 and the amount of damages payable to the Protected Partner under Section 4.1 (and to the extent applicable,
Section 4.4) shall be final, conclusive and binding on the Partnership and the Protected Partner. The fees and expenses of any Accounting Firm incurred in connection with any such determination shall be shared equally by the Partnership and the
Protected Partner; provided, however, that (i) if the amount determined by the Accounting Firm to be owed by the Partnership to the Protected Partner is more than ten percent (10%) higher than the amount proposed by the Partnership to be
owed to such Protected Partner prior to the submission of the matter to the Accounting Firm, then all of the fees and expenses of any Accounting Firm incurred in connection with any such determination shall be paid by the Partnership, and
(ii) if the amount determined by the Accounting Firm to be owed by the Partnership to the Protected Partner is more than ten percent (10%) less than the amount proposed by the Partnership to be owed to such Protected Partner prior to the
submission of the matter to the Accounting Firm, then all of the fees and expenses of any Accounting Firm incurred in connection with any such determination shall be paid by the Protected Partner. 

4.3        Required Notices; Time for Payment. In the event that there
has been a breach of Article 2, Article 3 or Article 6, the Partnership shall provide to the Protected Partner notice of the transaction or event giving rise to such breach not later than at such time as the Partnership provides to
the Protected Partners the Schedule K-1’s to the Partnership’s federal income tax return as required in 

  
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accordance with Section 7.4 below. All payments required under this Article 4 to any Protected Partner shall be made to such Protected Partner on or before April 15 of the year
following the year in which the gain recognition event giving rise to such payment took place; provided that, if the Protected Partner is required to make estimated tax payments that would include such gain, the Partnership shall make a payment to
the Protected Partner on or before the due date for such estimated tax payment and such payment from the Partnership shall be in an amount that corresponds to the amount of the estimated tax being paid by such Protected Partner at such time. In the
event of a payment required after the date required pursuant to this Section 4.3, interest shall accrue on the aggregate amount required to be paid from such date to the date of actual payment at a rate equal to the “prime rate” of
interest, as published in the Wall Street Journal (or if no longer published there, as announced by Citibank) effective as of the date the payment is required to be made. 
 4.4        Additional Damages for Breaches of Section 2.2(b) and/or Section 3.3. Notwithstanding any of the foregoing in this
Article 4, in the event that the Partnership should breach any of its covenants set forth in Section 2.2(b) and/or Section 3.3 and a Protected Partner is required to make a payment in respect of such indebtedness that it would not
have had to make if such breach had not occurred (an “Excess Payment”), then, in addition to the damages provided for in the other Sections of this Article 4, the Partnership shall pay to such Protected Partner an amount equal to the
sum of (i) the Excess Payment plus (ii) the aggregate federal, state and local income taxes, if any, computed or set forth in Section 4.1, required to be paid by such Protected Partner by reason of Section 4.4 becoming operative
(for example, because the breach by the Partnership and this Section 4.4 caused all or any portion of the indebtedness in question no longer to be considered debt includible in basis by the affected Protected Partner pursuant to Treasury
Regulations § 1.752-2(a)), plus (iii) an amount equal to the aggregate federal, state and local income taxes required to be paid by the Protected Partner (computed as set forth in Section 4.1) as a result of any payment required
under this Section 4.4. 
 ARTICLE 5 
 SECTION 704(C) METHOD AND ALLOCATIONS 
 Notwithstanding any provision
of the Partnership Agreement, the Partnership shall use the “traditional method” under Regulations § 1.704-3(b) for purposes of making all allocations under Section 704(c) of the Code (with no “curative
allocations” to offset the effects of the “ceiling rule,” including upon any sale of a Protected Property). 

ARTICLE 6 

ALLOCATIONS OF LIABILITIES 
 PURSUANT TO REGULATIONS UNDER SECTION 752 

6.1        Allocation Methods to be Followed. Except as provided in
Section 6.2, all tax returns prepared by the Partnership with respect to the Tax Protection Period that allocate liabilities of the Partnership for purposes of Section 752 and the Treasury Regulations thereunder shall treat each Partner
Guarantor as being allocated for federal income tax purposes an amount of Partnership debt (including recourse debt allocated to such Partner pursuant to Treasury Regulations § 1.752-2 and nonrecourse debt otherwise allocable to such
Partner Guarantor in accordance with the Partnership Agreement and Treasury Regulations § 1.752-3 and any other recourse liabilities allocable to such Partner Guarantor by reason of guarantees of indebtedness entered into pursuant to other
agreements with the Partnership) equal to such Partner Guarantor’s Minimum Liability Amount, as set forth on Schedule 3.1 hereto and as may be reduced pursuant to the terms of this Agreement, and the Partnership and the REIT shall not,
during or with respect to the Tax Protection Period, take any contrary or inconsistent position in any federal or state income tax returns (including, without limitation, information returns, such as Forms K-1, provided to partners in the
Partnership and returns of Subsidiaries of the Partnership) or any dealings 

  
 -10-

 
involving the Internal Revenue Service (including, without limitation, any audit, administrative appeal or any judicial proceeding involving the income tax returns of the Partnership or the tax
treatment of any holder of partnership interests in the Partnership). 

6.2        Exception to Required Allocation Method. Notwithstanding the
provisions of this Agreement, the Partnership shall not be required to make allocations of Guaranteed Debt or other recourse debt of the Partnership to the Protected Partners as set forth in this Agreement if and to the extent that the Partnership
determines in good faith that there may not be “substantial authority” (within the meaning of Section 6662(d)(2)(B)(i)) of the Code for such allocation; provided that the Partnership shall provide to each Protected Partner (or in the
event of their death or disability, their executor, guardian or custodian, as applicable), notice of such determination and if, within forty-five (45) days after the receipt thereof, the Partnership is provided an opinion of a law firm
recognized as expert in such matters or a nationally recognized public accounting firm to the effect that there is “substantial authority” (within the meaning of Section 6662(d)(2)(B)(i) of the Code) for such allocations, the
Partnership shall continue to make allocations of Guaranteed Debt or other recourse debt of the Partnership to the Protected Partners as set forth in this Agreement; provided further that if there shall have been a judicial determination in a
proceeding to which the Partnership is a party and as to which the general partner(s) has(ve) been allowed to participate as and to the extent contemplated in Article 7 to the effect that such allocations are not correct, Section 6.1 shall
not apply unless the matter is being appealed to an applicable court of appeals, the requirements of Section 9.10 shall have been satisfied in connection therewith, and the opinion described above from counsel or accountants engaged by a
Protected Partner shall have been provided, except that such opinion shall be to the effect that it is more likely than not that such allocations will be respected. In no event shall this Section 6.2 be construed to relieve the Partnership for
liability arising from a failure by the Partnership to comply with one or more of the provisions of Article 3 of this Agreement. 
 6.3        Cooperation in the Event of a Change. If a change in the Partnership’s allocations of Guaranteed Debt or other recourse
debt of the Partnership to the Protected Partners is required by reason of circumstances described in Section 6.2, the Partnership and its professional tax advisors shall cooperate in good faith with each Protected Partner (or in the event of
their death or disability, their executor, guardian or custodian, as applicable) and their professional tax advisors to develop alternative allocation arrangements and/or other mechanisms that protect the federal income tax positions of the
Protected Partners in the manner contemplated by the allocations of Guaranteed Debt or other recourse debt of the Partnership to the Protected Partners as set forth in this Agreement. 

ARTICLE 7 

TAX PROCEEDINGS 
 7.1        Notice of Tax Audits. If any claim, demand, assessment (including a notice of proposed assessment) or other assertion is made
with respect to taxes against the Protected Partners or the Partnership the calculation of which involves a matter covered in this Agreement that could result in tax liability to a Protected Partner (“Tax Claim”) or if the REIT or the
Partnership receives any notice from any jurisdiction with respect to any current or future audit, examination, investigation or other proceeding (“Tax Proceeding”) involving the Protected Partners or the Partnership or that otherwise
could involve a matter covered in this Agreement and could directly or indirectly affect the Protected Partners (adversely or otherwise), then the REIT or the Partnership, as applicable shall promptly notify the Protected Partners of such Tax Claim
or Tax Proceeding. 
 7.2        Control of Tax
Proceedings. The REIT, as the general partner of the Partnership, shall have the right to control the defense, settlement or compromise of any Proceeding or Tax Claim; provided, however, that the REIT shall not Consent to the entry of
any judgment or enter into any 

  
 -11-

 
settlement with respect to such Tax Claim or Tax Proceeding that could result in tax liability to a Protected Partner without the prior written Consent of the Protected Partners (unless, and only
to the extent, that any taxes required to be paid by the Protected Partners as a result thereof would be required to be reimbursed by the Partnership and the REIT under Article 4 and the Partnership and the REIT agree in connection with such
settlement or Consent, to make such required payments); provided further that the Partnership shall keep the Protected Partners duly informed of the progress thereof to the extent that such Proceeding or Tax Claim could directly or indirectly affect
(adversely or otherwise) the Protected Partners and that the Protected Partners shall have the right to review and comment on any and all submissions made to the to Internal Revenue Service (“IRS”), a court, or other governmental body with
respect to such Tax Claim or Tax Proceeding and that the Partnership will consider such comments in good faith. 

7.3        Timing of Tax Returns; Periodic Tax Information. The
Partnership shall cause to be delivered to each Protected Partner, as soon as practicable each year, the Schedules K-1 that the Partnership is required to deliver to such Protected Partners with respect to the prior taxable year. In addition, the
Partnership agrees to provide to the Protected Partners, upon request, an estimate of the taxable income expected to be allocable for a specified taxable year from the Partnership to each Protected Partner and the entities that they control,
provided that such estimates shall not be required to be provided more frequently than once each calendar quarter. 
 ARTICLE
8 
 AMENDMENT OF THIS AGREEMENT; WAIVER OF CERTAIN PROVISIONS; 

APPROVAL OF CERTAIN TRANSACTIONS 
 8.1        Amendment. This Agreement may not be amended, directly or indirectly (including by reason of a merger between the Partnership
and another entity) except by a written instrument signed by both the REIT, as general partner of the Partnership, and each of the Protected Partners. 
 8.2        Waiver. Notwithstanding the foregoing, upon written request by the Partnership, each Protected Partner, in its sole discretion,
may waive the payment of any damages that is otherwise payable to such Protected Partner pursuant to Article 4 hereof. Such a waiver shall be effective only if obtained in writing from the affected Protected Partner. 

ARTICLE 9 

MISCELLANEOUS 
 9.1        Additional Actions and Documents. Each of the parties hereto hereby agrees to take or cause to be taken such further actions,
to execute, deliver, and file or cause to be executed, delivered and filed such further documents, and will obtain such Consents, as may be necessary or as may be reasonably requested in order to fully effectuate the purposes, terms and conditions
of this Agreement. 
 9.2        Assignment. No party hereto
shall assign its or his rights or obligations under this Agreement, in whole or in part, except by operation of law, without the prior written Consent of the other parties hereto, and any such assignment contrary to the terms hereof shall be null
and void and of no force and effect. 
 9.3        Successors and
Assigns. This Agreement shall be binding upon and shall inure to the benefit of the Protected Partners and their respective successors and permitted assigns, whether so expressed or not. This Agreement shall be binding upon the REIT,
the Partnership, and any entity that is a direct or indirect successor, whether by merger, transfer, spin-off or otherwise, to all or substantially all of the assets of either the REIT or the Partnership (or any prior successor thereto as set forth
in the preceding portion of this sentence), provided that none of the foregoing shall result in the release of liability of the 

  
 -12-

 
REIT and the Partnership hereunder. The REIT and the Partnership covenant with and for the benefit of the Protected Partners not to undertake any transfer of all or substantially all of the
assets of either entity (whether by merger, transfer, spin-off or otherwise) unless the transferee has acknowledged in writing and agreed in writing to be bound by this Agreement, provided that the foregoing shall not be deemed to permit any
transaction otherwise prohibited by this Agreement. 

9.4        Modification; Waiver. No failure or delay on the part of any
party hereto in exercising any power or right hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or discontinuance of steps to enforce such a right or power, preclude
any other or further exercise thereof or the exercise of any other right or power. The rights and remedies of the parties hereunder are cumulative and not exclusive of any rights or remedies which they would otherwise have. No modification or waiver
of any provision of this Agreement, nor Consent to any departure by any party therefrom, shall in any event be effective unless the same shall be in writing, and then such waiver or Consent shall be effective only in the specific instance and for
the purpose for which given. No notice to or demand on any party in any case shall entitle such party to any other or further notice or demand in similar or other circumstances. 

9.5        Representations and Warranties Regarding Authority;
Noncontravention.
     (a)        Representations and
Warranties of the REIT and the Partnership. Each of the REIT and the Partnership has the requisite corporate or other (as the case may be) power and authority to enter into this Agreement and to perform its respective obligations hereunder.
The execution and delivery of this Agreement by each of the REIT and the Partnership and the performance of each of its respective obligations hereunder have been duly authorized by all necessary trust, partnership, or other (as the case may be)
action on the part of each of the REIT and the Partnership. This Agreement has been duly executed and delivered by each of the REIT and the Partnership and constitutes a valid and binding obligation of each of the REIT and the Partnership,
enforceable against each of the REIT and the Partnership in accordance with its terms, except as such enforcement may be limited by (i) applicable bankruptcy or insolvency laws (or other laws affecting creditors’ rights generally) or
(ii) general principles of equity. The execution and delivery of this Agreement by each of the REIT and the Partnership do not, and the performance by each of its respective obligations hereunder will not, conflict with, or result in any
violation of (x) the Partnership Agreement or (y) any other agreement applicable to the REIT and/or the Partnership, other than, in the case of clause (y), any such conflicts or violations that would not materially adversely affect
the performance by the Partnership and the REIT of their obligations hereunder. 

    (b)        Representations and Warranties of the Protected
Partners. Each of the Protected Partners has the requisite corporate or other (as the case may be) power and authority to enter into this Agreement and to perform its respective obligations hereunder. The execution and delivery of this
Agreement by each of the Protected Partners and the performance of each of its respective obligations hereunder have been duly authorized by all necessary trust, partnership, or other (as the case may be) action on the part of each of the Protected
Partners. This Agreement has been duly executed and delivered by each of the Protected Partners and constitutes a valid and binding obligation of each of the Protected Partners. 

9.6        Captions. The Article and Section headings contained in this
Agreement are inserted for convenience of reference only, shall not be deemed to be a part of this Agreement for any purpose, and shall not in any way define or affect the meaning, construction or scope of any of the provisions hereof. 

9.7        Notices. All notices and other communications given or made
pursuant hereto shall be in writing and shall be deemed to have been duly given or made as of the date delivered, mailed or 

  
 -13-

 
transmitted, and shall be effective upon receipt, if delivered personally, mailed by registered or certified mail (postage prepaid, return receipt requested) to the parties at the following
addresses (or at such other address for a party as shall be specified by like changes of address) or sent by electronic transmission to the telecopier number specified below: 

 

	 	  (i)	if to the Partnership or the REIT, to: 

 The GC Net Lease REIT, Inc. 
 Suite 3321 

2121 Rosecrans Avenue 
 El Segundo, California 90245 
 Attention: Kevin Shields 

Facsimile: (310) 606-5910 
  

	 	  (ii)	if to a Protected Partner, to the address on file with the Partnership. 

 Each party may designate by notice in writing a new address to which any notice, demand, request or communication may thereafter be so given, served or sent. Each notice, demand, request, or communication
which shall be hand delivered, sent, mailed, telecopied or telexed in the manner described above, or which shall be delivered to a telegraph company, shall be deemed sufficiently given, served, sent, received or delivered for all purposes at such
time as it is delivered to the addressee (with the return receipt, the delivery receipt, or (with respect to a telecopy or telex) the answerback being deemed conclusive, but not exclusive, evidence of such delivery) or at such time as delivery is
refused by the addressee upon presentation. 

9.8        Counterparts. This Agreement may be executed in two or more
counterparts, all of which shall be considered one and the same agreement and each of which shall be deemed an original. 

9.9        Governing Law. The interpretation and construction of this
Agreement, and all matters relating thereto, shall be governed by the laws of the State of California, without regard to the choice of law provisions thereof. 
 9.10      Consent to Jurisdiction; Enforceability.
   (a)        This Agreement and the duties and obligations of the parties hereunder shall be enforceable against any of the parties in the courts of the
State of California. For such purpose, each party hereto hereby irrevocably submits to the nonexclusive jurisdiction of such courts and agrees that all claims in respect of this Agreement may be heard and determined in any of such courts.

   (b)        Each party hereto hereby irrevocably agrees that a final
judgment of any of the courts specified above in any action or proceeding relating to this Agreement shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. 

9.11        Severability. If any part of any provision of this
Agreement shall be invalid or unenforceable in any respect, such part shall be ineffective to the extent of such invalidity or unenforceability only, without in any way affecting the remaining parts of such provision or the remaining provisions of
this Agreement. 
 9.12        Costs of Disputes. Except as
otherwise expressly set forth in this Agreement, the nonprevailing party in any dispute arising hereunder shall bear and pay the costs and expenses (including, 

  
 -14-

 
without limitation, reasonable attorneys’ fees and expenses) incurred by the prevailing party or parties in connection with resolving such dispute. 

[signature pages to follow] 

  
 -15-

 IN WITNESS WHEREOF, each of the parties hereto has executed and delivered this Agreement, or
caused the Agreement to be duly executed and delivered on its behalf, as of the date first set forth above. 
  

					
	THE REIT:
	
	The GC Net Lease REIT, Inc.
		
	By:	 	 /s/ Kevin A. Shields
 Kevin A. Shields, President

	
	THE PARTNERSHIP:
	
	The GC Net Lease REIT Operating Partnership, L.P.
		
	By:	 	 The GC Net Lease REIT, Inc.,
 Its General Partner

			
		 	By:	 	 /s/ Kevin A. Shields

Kevin A. Shields, President

 [signature page – Tax Protection Agreement] 

 CONTRIBUTORS: 
 [executed by an authorized signatory] 
 Griffin Capital (Carlsbad Pointe) Investors, LLC

 Griffin Capital (Carlsbad Pointe) Investor 1, LLC 
 Griffin Capital (Carlsbad Pointe) Investor 2, LLC 
 Griffin Capital (Carlsbad Pointe) Investor 3,
LLC 
 Griffin Capital (Carlsbad Pointe) Investor 5, LLC 
 Griffin Capital (Carlsbad Pointe) Investor 10, LLC 
 Griffin Capital (Carlsbad Pointe) Investor
12, LLC 
 Griffin Capital (Carlsbad Pointe) Investor 14, LLC 
 Griffin Capital (Carlsbad Pointe) Investor 19, LLC 
 Griffin Capital (Carlsbad Pointe) Investor
20, LLC 
 Griffin Capital (Carlsbad Pointe) Investor 21, LLC 
 Griffin Capital (Carlsbad Pointe) Investor 22, LLC 
 Griffin Capital (Carlsbad Pointe) Investor
23, LLC 
 Griffin Capital (Carlsbad Pointe) Investor 24, LLC 
 Griffin Capital (Carlsbad Pointe) Investor 27, LLC 
 Griffin Capital (Carlsbad Pointe) Investor
29, LLC 

 THE PROTECTED PARTNERS: 
 [executed by an authorized signatory] 
 Croop Enterprises, Inc., a California Corporation

 James Edwin Pon, as Trustee under The James Edwin Pon Revocable Living Trust dated July 22, 1997 

3315 JAJ LLC 
 William W. Wilson 

Michael G. Wilson & Laura E. Renaud-Wilson, as Trustees under Michael G. Wilson and Laura E. Renaud-Wilson Living Trust U/D/T dated
August 17, 1988, as amended and restated October 16, 1998 
 Katherine O. Livernash and Thomas S. Livernash, as Trustees under
Livernash Family 1990 Exemption Trust B 
 Jon Thomas Green, as Trustee under Jon Thomas Green Trust 

Wayne Klenck & Carol Klenck, as Trustees under Klenck Living Trust dated January 24, 1987 

Roger Finberg, as Trustee under The Finberg Trust of 1995 dated April 4, 1995 
 Hans Kruger, as Trustee under The Hans Kruger Trust 
 Richard C. Boulger & Juanita S.
Boulger, as Trustee under Richard C. and Juanita S. Boulger Revocable Trust dated October 16, 1991 
 James V. Dusserre & Joanne
C. Dusserre 
 Trust of James Rossi and Noreen Rossi, dated March 4, 1993 
 Peter J. Martinelli 
 Brian Brown & Victoria Brown 

Griffin Capital Corporation, a California Corporation 

  
 -18-Cash Purchase Agreement

 Exhibit 10.3 
 PURCHASE AGREEMENT AND ESCROW INSTRUCTIONS 
  

 
 WARNING: BY
EXECUTING AND RETURNING THIS AGREEMENT, YOU ARE REPRESENTING AND WARRANTING THAT YOU HAVE CONSULTED YOUR OWN LEGAL AND TAX ADVISORS WITH RESPECT TO THIS AGREEMENT AND THE TAX AND OTHER LEGAL RAMIFICATIONS OF A SALE OF THE INTEREST OF THE PROPERTY.

 This PURCHASE AGREEMENT AND ESCROW INSTRUCTIONS (“Agreement”) is made and effective as of the date
Buyer executes this Agreement (“Effective Date”), by and between The GC Net Lease (Carlsbad) Investors, LLC, a Delaware limited liability company (“Buyer”), and the parties described in Exhibit D attached hereto and by this
reference made a part hereof, each a Delaware limited liability company (each a “Seller” and collectively, “Seller”), with reference to the facts set forth below. All terms with initial capital letters not otherwise defined
herein shall have the meanings set forth in Exhibit B herein. 
 RECITALS 

Sellers, in a tenancy-in-common ownership structure, previously purchased the land and improvements consisting of a
certain office, research and development facility located at 5781 Van Allen Way, Carlsbad, California (legally described in Exhibit “A” attached hereto and incorporated by reference herein), which includes the land and improvements,
together with all appurtenant easements, rights, and privileges, used or useful or connected with the beneficial use and enjoyment of the land and improvements, including, without limitation, all intellectual and intangible rights associated
therewith and all of Seller’s right, title and interest in the Lease and any contracts, guarantees, licenses, approvals, permits, names, marks, and intellectual property, all the foregoing being hereinafter collectively referred to herein as
the “Property”; 
 Sellers desire to sell an undivided interest in the Property to Buyer and Buyer
desires to buy an undivided interest in the Property from Sellers on the terms and conditions set forth in this Agreement; 
 The Property is subject to the Loan and Buyer shall acquire the Property subject to the Loan; 
 Buyer is offering Sellers the opportunity to enter into a so-called “721 Exchange” transaction for all or a portion of their respective equity interest in the Property, whereby participating
Sellers will receive Units of limited partnership interests in The GC Net Lease REIT Operating Partnership, L.P., a Delaware limited partnership (in lieu of receiving the Cash Portion of the compensation contemplated herein) for their equity
interest in the Property (“Exchange Option”). Such offering for the Exchange Option is made pursuant to and in accordance with the terms and conditions set forth in the Contribution Agreement and any ancillary documentation entered into
with respect thereto, the Prospectus dated November 6, 2009 (“Prospectus”), as modified by Supplement 14 dated January 20, 2011 to the Prospectus dated November 6, 2009 (the “Supplement”), together with the
Confidential Supplemental Offering Memorandum dated March 9, 2011 (“Offering Memorandum”). The Contribution Agreement, Prospectus, Supplement and the Offering Memorandum are herein collectively referred to as the “Offering
Materials”. 
 Concurrently, Buyer and Sellers are entering into various Transaction Documents in
connection with the transactions contemplated herein. 
 NOW, THEREFORE, in consideration of the mutual
agreements set forth herein and for other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as set forth below. 

	1.	 Agreement of Purchase and Sale. 

 1.1. Recitals. The Recitals to this Agreement are hereby incorporated by referenced as though fully set forth herein. 

1.2 Purchase, Sale and Purchase Price. In consideration of the covenants herein contained, Sellers hereby agree to
sell, and Buyer hereby agrees to purchase, the percentage interest in the Property of each Seller as such percentage interest is indicated in Exhibit D opposite each Seller’s name (“Buyer’s Interest”) at a purchase price
(“Purchase Price”) in an aggregate amount approximately equal to $56,000,000 of which a portion shall be Cash (“Cash Portion”) paid into the escrow created by this Agreement (“Escrow”), or alternatively, if and to the
extent a Seller has elected to participate in the Exchange Option, in lieu of the Cash Portion of the Purchase Price as to which any Seller has elected to apply to the Exchange Option, Seller shall receive Units of limited partnership interests. Any
remainder of the Purchase Price shall be paid through the assumption of each Seller’s prorata portion of the Loan at the balance of the Loan existing as of the Closing Date. 

1.3. Payment. Buyer shall pay the Purchase Price as follows: 

1.3.1 Cash Portion of the Purchase Price. Subject to Section 1.3.3 below, Buyer shall deposit an amount equal to the Cash
Portion of the Purchase Price, and plus the amount, if any, required of Buyer under Section 4 or any other provision of this Agreement, in immediately available funds, at the close of Escrow. 

1.3.2 Units Received in Connection with Exchange Option. To the extent any Seller is participating in the Exchange Option, Units
of limited partnership interests as evidenced by the Contribution Agreement(s) entered into in connection with the Exchange Option, and pursuant to the terms of the Partnership Agreement of the Partnership. 

1.3.3. Note and Mortgage/Deed of Trust . With respect to the remaining balance of the Purchase Price (“Loan Portion”),
Buyer shall assume, or take title subject to, the Loan, at the close of Escrow. 
 1.4 Buyer’s
Deliveries. Buyer shall execute, acknowledge (where appropriate) and deposit into Escrow (i) this Agreement, (ii) the Transaction Documents, to the extent Buyer is a party thereto, (iii) including, without limitation, the Loan
Assumption Documents and (iii) such other documents as may be required by the Lender or the Escrow Agent (as identified in the signature page hereto). 
 1.5. Buyer’s Right to Examine. Buyer shall have the right, at all times prior to closing of the transactions contemplated herein, to examine any operating files maintained by Seller’s
agent in connection with the Loan, leasing, operation and maintenance of the Property. 
 2. Opening and
Close of Escrow. 
 2.1        Opening of Escrow. Upon
execution of this Agreement by all parties, Buyer shall open Escrow by depositing with the Escrow Agent a fully executed original of this Agreement for use as escrow instructions. The Escrow Agent shall execute the Consent of Escrow Agent at the end
of this Agreement and deliver a fully executed consent to Buyer. Buyer shall in turn, provide a fully executed copy of this Agreement to Seller. Buyer and Sellers agree to execute additional escrow instructions not inconsistent with the terms of
this Agreement reasonably required by the Escrow Agent. If there is any inconsistency between the provisions of any such additional escrow instructions and this Agreement as to Buyer’s and Seller’s transactions, the provisions of this
Agreement shall control. 

 2.2        Seller’s
Deliveries. Prior to the close of Escrow, each Seller shall execute, acknowledge (where appropriate) and deposit into Escrow applicable certificates regarding federal and state withholding taxes and a grant deed, limited warranty deed or other
appropriate transfer document (“Grant Deed”), in form as approved by Buyer, conveying title to Buyer, along with the Loan Assumption Documents, the Transaction Documents to the extent Seller is a party thereto, and such other documents and
agreements as Buyer or Lender shall reasonably require in connection with the Closing of the transactions contemplated herein. 
 2.3        Close of Escrow. Escrow shall close on or before the date (the “Closing Date”) upon which Buyer determines that (x) all Sellers
which currently own the Property are prepared to close the respective transactions applicable to each (i) by filing for record the Grant Deed, recording the Termination Agreements for the Tenants in Common Agreement and Call Agreement, and the
Loan Assumption Documents, delivery of the termination of Asset Management Agreement, Consent of each Seller to the sale of the Property and such other such documents as may be necessary to procure Buyer’s Title Policy (as defined below), and
(ii) delivering funds and documents as set forth in Section 5 WHEN AND ONLY WHEN (a) all funds and instruments required pursuant to Sections 1 and 2 have been delivered to the Escrow Agent; and (b) each of the conditions set
forth in Section 3 has been, or upon such closing shall be, satisfied or waived as provided for in Section 3; (y) Lender has approved the closing of the Loan Assumption; provided, however, that Buyer may extend the Closing Date for
such additional periods as required to effect the closing so long as Buyer is diligently proceeding with the close of Escrow as of the Closing Date; and (z) Buyer has satisfied all conditions of any other lender providing funds to Buyer for
purposes of consummating the acquisition of the interest of all Sellers’ in the Property. Escrow Agent is authorized to close escrow only if and when: (i) Escrow Agent has received all items required to be delivered pursuant to the terms
hereof; and (ii) Title Company can and will issue a single Title Policy for all of the Property owned by Sellers. 
 2.4        Failure to Close. If this Agreement is terminated as a result of a failure of the Buyer’s Condition (i) Buyer and Sellers shall promptly
execute and deliver any cancellation instructions reasonably requested by the Escrow Agent; (ii) Buyer and Sellers shall be released from their obligations under this Agreement, other than any obligations of the parties that survive the
termination of this Agreement. If all conditions to the close of Escrow have been satisfied or waived by the Closing Date, as extended at the option of Buyer, as contemplated herein, and Buyer fails to close Escrow, Seller, as its sole remedy, shall
be entitled to terminate this Agreement and, upon such termination, Buyer and Sellers shall be released from all obligations under this Agreement. 
 2.5        Real Estate Reporting Person. If an to the extent applicable, Escrow Agent is designated the “real estate reporting person” for purposes
of Section 6045 of Title 26 of the United States Code and Treasury Regulation 1.6045-4 and any instructions or settlement statement prepared by Escrow Agent shall so provide. Upon the consummation of the transactions contemplated by this
Agreement, Escrow Agent shall file Form 1099 information return and send the statement(s) to Sellers as required under the aforementioned statute and regulation. 
  

	3.	Conditions to Closing. 

 3.1        Closing Conditions. This Agreement and the obligations of the parties hereunder are subject to satisfaction or waiver (by the party in whose favor
the condition precedent has been established) of all the conditions precedent set forth below. 

3.1.1.        Review of Preliminary Report. Prior to the date hereof,
Buyer will receive from Escrow a Title Report (as defined below) to review and retain for their records. If any new exceptions to title appear of record prior to the Closing Date, the Escrow Agent shall deliver to Buyer a supplemental report
(“Supplemental Report”) issued by the Title Company. If Buyer objects to any items on the Title Report or Supplemental Report that will not be removed at closing within three (3) days of receipt of either report, Buyer must notify the
Escrow Agent in writing. If any additional items appear that are not the result of an act, omission or negligence of Sellers, then Buyer’s only remedy is to terminate Escrow and, if Buyer does not so elect to terminate Escrow, Buyer shall be
deemed to have consented to any such new exceptions to 

 
title. If Buyer delivers notice of its election to terminate pursuant to this Section 3.1.1, then this Agreement shall terminate and Buyer shall have no further obligation to Seller
hereunder. 
 3.1.2.    Title Insurance. Sellers shall provide a new title policy to
Buyer conveying title to one hundred percent (100%) of the Property subject only to the Permitted Exceptions, as hereinafter defined (“Title Policy”), in an amount that is not less than the amount of the Purchase Price, or such
increased amount as Buyer shall desire, insuring title to Buyer’s Interest. Buyer shall take title to the Property subject to the exceptions (as approved by Buyer, in its sole discretion) (the “Permitted Exceptions”). At Buyer’s
election, the Title Company must be prepared to irrevocably and unconditionally committed to issue at closing one (1) title insurance policy to Buyer for the fee simple interest all of the Sellers of the Property (in lieu of separate policies
from each tenant in common owner of the Property constituting Sellers), insuring title subject only to such exceptions as Buyer has expressly approved, and with such endorsements as Buyer may reasonably require. 

3.1.3.    Approval of Loan Assumption. Lender shall have approved Buyer’s assumption of
the Loan with respect to Buyer’s Interest, and the interest of all Sellers being acquired simultaneously. 

3.1.4.    Buyer’s Condition. Anything contained in this Agreement to the contrary
notwithstanding, Buyer’s agreement to acquire the Property is expressly subject to and contingent upon Buyer being able to complete the acquisition of a one hundred percent fee simple (100%) interest in the Property from all of the Sellers
currently holding title, upon such terms and conditions as are acceptable to Buyer in its sole and absolute discretion (including, without limitation, obtaining and funding financing on terms acceptable to Buyer, in its sole discretion)
(“Buyer’s Condition”). Sellers acknowledge that such condition involves consummating numerous tax-deferred exchanges pursuant to Section 721 of the Internal Revenue Code and acquisition of the remainder of the Property from
parties that are not exchanging, or are exchanging in part and selling the remainder of their interest to Buyer. Accordingly Buyer shall have no obligation to close the transaction unless and until all of such sales, exchanges and partial
sale/partial exchanges occur simultaneously, and upon such terms and conditions as are acceptable to Buyer and Lender in their respective sole discretion. If Buyer determines, in its sole and absolute discretion, that closing is unlikely to occur,
Buyer may terminate this Agreement at any time. 
 3.1.5.    Estoppel. If required by
Lender, Buyer shall have received, at least three (3) days prior to closing, an executed estoppel certificate from the tenant of the property, in form satisfactory to Lender. 

3.1.6    Seller’s Representations/ No Default. Each and every representation and warranty
of Seller set forth herein shall be true, correct and complete as of the Closing Date, and Seller shall not be in default under any, and shall have otherwise performed in full all, of its obligations to be performed by Seller under this Agreement as
of the Closing Date, including, without limitation, delivering all of the documents contemplated herein. Sellers shall not have filed any (or have had filed against it or any of them) any proceeding in bankruptcy, receivership or any similar
proceeding. 
 3.1.7    No Transfer of Interest. Except to the extent permitted
herein, prior to the Closing Date, Sellers have not and shall not sell, mortgage, pledge, hypothecate or otherwise transfer or dispose of all or any part of the Property or any interest therein or in the entity which constitutes a constituent entity
of, or party in, any Seller. 
 3.2        Failure of Conditions
Precedent. The Conditions to Closing set forth herein are for Buyer’s benefit and may only be waived by Buyer, provided that no such waiver shall be deemed effective unless made in writing and signed by Buyer. In addition, Buyer may
terminate this Agreement at any time if the tenant of the Property elects to exercise its purchase option under the Lease, and by its execution hereof, Seller acknowledges and consents to the assignment of the purchase option to Buyer. This consent
by Seller shall survive the termination of this Agreement. 

	4.	Fees and Costs. 

 4.1        Buyer’s Fees and Costs. Buyer will pay (i) the Escrow Agent’s fee attributable to the closing of the Loan assumption (ii) all
document recording charges, (iii) the cost of the Title Policy and any title endorsements Buyer or Lender requests to the Title Policy, (iv) any assumption fee charged by the Lender up to 1% of the loan amount assumed, along with loan
processing fees, escrow coordinating and Lender legal fees, and (v) city/county documentary transfer tax or similar charge in the amount the Escrow Agent determines to be required by law, but only to the extent the same exceeds the aggregate
sum of Sixty Two Thousand Five Hundred and 00/100 Dollars ($62,500), such excess to be determined and paid ratably over all Sellers based on percentage of ownership of fee simple interest. If Escrow fails to close due to Buyer’s Default under
this Agreement, Buyer shall pay all escrow cancellation and title charges. 

4.2        Seller’s Fees and Costs. Each Seller shall pay
(i) the cost of Escrow Agent’s fee attributable to the sale of such Seller’s fee simple interest in the Property; (ii) city/county documentary transfer tax or similar charges in the amount the Escrow Agent determines to be
required by law (ratably by percentage of ownership percentage of ownership interest, up to a maximum of Sixty Two Thousand Five Hundred and 00/100 Dollars($62,500.00)), and (iii) in the event any Seller elects to enter into a so-called
“1031 exchange” transaction, any additional escrow cost imposed on the Seller so electing by the Escrow Agent in connection therewith. 
 4.3        Legal Costs. Each party shall bear the expense of its own counsel. 

 

	5.	Distribution of Funds and Documents. 

 5.1        Deposit of Funds. After Opening of Escrow, all Cash, if any, received hereunder by the Escrow Agent shall be held until the close of Escrow and
kept on deposit with other escrow funds in the Escrow Agent’s general escrow account(s), in any state or national bank, and may be transferred to any other such general escrow account(s). 

5.2        Disbursements. At the close of Escrow, the Escrow Agent will
deliver or wire transfer (i) to each Seller, or their respective order, the allocable amount of the Cash Portion of the Purchase Price (based on each Seller’s respective ownership percentage and reduced by any portion allocated to
(a) the Exchange Option) and (b) disposition fees and commissions paid to securities broker dealers or fees paid to investment advisors engaged by any Seller if Seller has elected to participate in the Exchange Option, plus or minus any
proration or other credits to which the parties will be entitled hereunder (such credits and prorations to consist solely of the rental payment due from the tenant of the Property and debt service payments), and (ii) to Buyer, or order, any
excess funds theretofore delivered to the Escrow Agent by Buyer. All other disbursements by the Escrow Agent shall be made by checks of the Escrow Agent. For purposes of calculating prorations, Buyer shall be deemed to be in title to the Property,
and therefore, entitled to the income therefrom and responsible for the expenses thereof for the entire day upon which the Closing occurs, proration shall be made on the basis of the actual number of days of the month which shall have elapsed as of
the day of the Closing and based upon the actual number of days in the month and a three-hundred-sixty-five (365) days per year, provided, however, no prorations shall be made for direct expense items paid by the tenant of the property.
Insurance shall not be prorated. Except as expressly set forth in this Agreement, all items of income and expense which accrue for the period prior to the Closing will be for the account of Seller and all items of income and expense which accrue for
the period after Closing will for the account of Buyer. The balance of any operating reserve held by Seller’s agent may be distributed through the Escrow on a prorata basis, provided any Seller receiving such distribution through escrow hereby
represents and warrants that it is the authorized party entitled to such distribution and shall indemnify, defend and hold harmless Buyer from any claims with respect thereto. The provisions of this Section 12 shall survive closing. 

5.3        Recorded Documents. The Escrow Agent will cause the County
Recorder to mail the Grant Deed and any other recorded document, after recordation, to Buyer. The Escrow Agent will, at the close of Escrow, deliver to each Seller, as the same pertains to its interest, a copy (conformed to show recording date) of
its Grant Deed and each document recorded to clear title to place title in the condition required by the Agreement. 

 5.4        Unrecorded
Documents. At the close of Escrow, the Escrow Agent will deliver by United States mail (or will hold for personal pickup, if requested) each unrecorded document received hereunder by the Escrow Agent to the payee or person (i) acquiring
rights under such document, or (ii) for whose benefit such document was acquired. 

6.          Default. If Escrow fails to close due to Buyer’s Default, each
Seller’s sole remedy shall be to terminate this agreement. If Escrow fails to close due to Seller’s default, or if any of Seller’s covenants, representations, or warranties are not true and correct as of Closing, then Buyer, in
addition to any other right or remedy at law or in equity, shall be entitled to specific performance of Seller’s obligation to convey the Property. 
  

	7.	Buyer Representations and Warranties. 

 7.1        No Concern of the Escrow Agent. The Escrow Agent shall have no concern with, or liability or responsibility for, this Section. 

7.2        Purchase As-Is. BUYER REPRESENTS AND WARRANTS THAT IT IS RELYING SOLELY ON ITS
OWN INSPECTIONS, INVESTIGATIONS AND ANALYSES OF THE PROPERTY IN ENTERING INTO THIS AGREEMENT AND BUYER IS NOT RELYING IN ANY WAY ON ANY REPRESENTATIONS, STATEMENTS, AGREEMENTS, WARRANTIES, STUDIES, REPORTS, DESCRIPTIONS, GUIDELINES OR OTHER
INFORMATION OR MATERIAL FURNISHED BY SELLERS OR THEIR REPRESENTATIVES, WHETHER ORAL OR WRITTEN, EXPRESS (EXCEPT TO THE EXTENT EXPRESSLY SET FORTH HEREIN) OR IMPLIED OF ANY NATURE WHATSOEVER REGARDING ANY SUCH MATTERS AND IS BUYING BUYER’S
INTEREST IN AN “AS-IS” CONDITION. BUYER IS A SOPHISTICATED, EXPERIENCED INVESTOR AND WILL RELY ENTIRELY ON ITS REVIEW OF THE PROPERTY. BUYER ACKNOWLEDGES THAT SELLERS HAVE LIMITED KNOWLEDGE REGARDING THE CONDITION OF THE PROPERTY. ANYTHING
TO THE CONTARY CONTAINED HEREIN NOTWITHSTANDING, THE FOREGOING SHALL NOT RELIEVE SELLERS OF LIABILITY FOR ANY BREACH OF ANY COVENANT, REPRESENTATION OR WARRANTY EXPRESSLY SET FORTH HEREIN. 

8.          Seller Representations and Warranties. Each Seller hereby represents
and warrants to Buyer that the following are true and correct on the date of this Agreement, and shall be true and correct as of the Closing Date. 
 8.1.        Interest Free and Clear. Sellers represent and warrant that the Property will be conveyed to Buyer free and clear of any lien or encumbrance
except (i) such items Buyer indicates are approved on the Title Report or Supplemental Title Report; (ii) the Loan and the Loan Assumption Documents, and that except for the Loan, Buyer has not encumbered its interest in the Property (or
in the entity which owns the Property). The party executing this Agreement or any other agreement contemplated under this agreement on behalf of each Seller represents and warrants that it/he/she is authorized to execute and deliver this Agreement
and no consent or approval of any other party is required in connection with the transactions contemplated herein. No Seller has filed nor to any Seller’s knowledge, been the subject of any filing of a petition under federal bankruptcy law or
any federal or state insolvency laws or laws for compromise of indebtedness or for the reorganization of debtors, nor has any Seller transferred its interest, or any underlying interest in Seller, in contravention of any law, ordinance, covenant,
agreement, representation or warranty including without limitation, the Loan Documents. The execution and delivery of this Agreement and the consummation of the transactions set forth herein have been authorized pursuant to all requisite limited
liability company or other action and will not violate (i) any provisions of any law, rule, regulation, order, writ, judgment, injunction, decree, determination, or award presently in effect having applicability to any Seller or the articles of
organization, certificate of formation, operating agreement, limited liability company agreement, or any other organizational document of Sellers (or those of any constituent entity of Seller) or (ii) result in a breach of or constitute a
default under any indenture, agreement, lease or instrument to which any Seller is a party or by which the Property may be bound or affected. Each Seller consents to the transfer and conveyance of the undivided interest of the other Sellers in the
Property to Buyer and waives any rights under the Tenants in Common Agreement and related documents, including, without limitation, the Call Agreement, entered into in connection therewith or in connection with any of the transactions contemplated
by this Agreement, including, without limitation, any restrictions on transfer, buy/sell rights, rights of appraisal, piggyback rights or rights of first offer or first refusal and any notice requirements in connection therewith or otherwise.

 8.2.        Authority To Transact. Each
Seller is validly organized and in good standing and authorized to business in the State of California. Each Seller, which for purposes of this Section 8.2 includes its partners, members, stockholders, trustees, and any other constituent
entities or persons, overseers, trustees, shareholders, and senior executive officers) has not been designated as a “specifically designated national and blocked person” on the most current list published by the U.S. Department of Treasury
Office of Foreign Asset Control at its official website, http://www.treas.gove/ofac/t11 or any replacement website or other replacement official publication of such list, and to each Seller’s actual knowledge, none of the partners, members,
principal stockholders and any other constituent entities or persons of such Seller have been designated as a “specifically designated national and blocked person” on the most current list of published by the U.S. Department of Treasury
Office of Foreign Asset Control at its official website, http://www.treas.gove/ofac/t11 or any replacement website or other replacement official publication of such list; and Seller is not in violation of compliance with the regulations of the
Office of Foreign Asset Control of the Department of Treasury and any statute, executive order (including the September 24, 2001 Executive Order Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or
Support Terrorism), or any other governmental action relating thereto. 

8.3         Binding Agreement. This Agreement is, and all the documents executed by
Sellers which are to be delivered to Buyer at the Closing, will be, duly authorized, executed and delivered by Sellers, and Sellers have consented to the sale of the Property and waived any right of first refusal, option to purchase, or other rights
associated with the tenancy in common form of ownership. The obligations contained in this Agreement are and will be legal, valid and binding obligations of Sellers enforceable against Sellers in accordance with their respective terms (except to the
extent such enforcement may be limited by applicable bankruptcy, insolvency, moratorium and other similar principles affecting creditor’s rights). To each Seller’s actual knowledge, there is no threatened claim or litigation that arises
out of Seller’s ownership or sale of the Property which might adversely affect the Property, the use thereof, or Seller’s ability to perform its obligations hereunder. 

8.1.2      Indemnity. Each and every representation and warranty of Sellers set forth herein shall
be true, correct and complete in all respects as of the Closing Date. Each Seller hereby agrees to indemnify, defend and hold harmless Buyer and all of its limited partners, general partners, officers, directors, affiliates and advisors from any and
all damages, losses, liabilities, costs and expenses (including reasonable attorneys’ fees) that they may incur by reason of such Seller’s failure to fulfill all of the terms and conditions of this Agreement or by reason of the untruth or
inaccuracy of any of the representations, warranties or agreements contained herein or in any other documents such Seller has furnished to any of the foregoing in connection with the transactions described herein. This indemnification includes, but
is not limited to, any damages, losses, liabilities, costs and expenses (including reasonable attorneys’ fees) incurred by Buyer, or any of its members, managers, officers, directors, affiliates or advisors defending against any alleged
violation of federal or state securities laws which is based upon or related to any untruth or inaccuracy of any of the representations, warranties or agreements contained herein or in any other documents that Buyer has furnished to any of the
foregoing in connection with this transaction. 
 8.2.        Compliance. Within
five (5) days after receipt of a written request from Buyer, each Seller agrees to provide such information and to execute and deliver such documents as may be reasonably necessary to comply with any and all laws and regulations to which Buyer
or Sellers are subject, and Seller further agrees to execute and deliver such documents and agreement as may reasonably required to close the transactions described herein. 
 8.3        Survival. The representations and warranties of Sellers set forth herein above shall not merge into any instrument or conveyance delivered at the
Closing and shall survive the close of Escrow or termination of this Agreement. 

	9.	General Provisions. 

 9.1
Interpretation. The use herein of (i) the neuter gender includes the masculine and the feminine, and (ii) the singular number includes the plural, whenever the context so requires. Captions in this Agreement are inserted for
convenience of reference only and do not define, describe or limit the scope or the intent of this Agreement or any of the terms hereof. All exhibits referred to herein and attached hereto are incorporated by reference. This Agreement, together with
the other Transaction Documents, contain the entire agreement between the parties relating to the transactions contemplated hereby, and all prior or contemporaneous agreements, understandings, representations and statements, oral or written, are
merged herein. Notwithstanding anything contained in this Agreement to the contrary, this Agreement shall not be construed to make the parties hereto partners or joint venturers, or to render either party liable for any debts or obligations of the
other, it being the intention of the parties to merely create the relationship of Seller and Buyer with respect to the Property to be conveyed as contemplated hereby. The making, execution and delivery of this Agreement by the parties hereto have
been induced by no representations, statements, warranties or agreements other than those expressly set forth herein. 
 9.2
Modification. No modification, waiver, amendment, discharge or change of this Agreement shall be valid unless the same is in writing and signed by the party against which the enforcement thereof is or may be sought. 

9.3 Cooperation. Buyer and Sellers acknowledge that it may be necessary to execute documents other than those specifically
referred to herein to complete the acquisition of Buyer’s Interest as provided herein. Buyer and each Seller agree to cooperate with each other by executing such other documents or taking such other action as may be reasonably necessary to
complete the transaction contemplated herein in accordance with the parties’ intent evidenced in this Agreement. Each Seller acknowledges and agrees that it is hereby granting Buyer the authority to finalize the Loan Assumption Documents and
that Seller’s asset manager is authorized to make changes to such documents and to the Transaction Documents and other documents contemplated hereunder as necessary to accomplish the Closing of the Transaction, including, without limitation,
the closing statement for the assumption of the Loan, execution deficiencies, updating or inserting figures which must be adjusted by reason of the Closing Date of the transaction being uncertain at the time of the execution hereof, and changes
required due to any Seller electing to participate in, or increase or decrease its participation percentage in the Exchange Option. 
 9.4 Assignment of Rights and Interests. To the extent that Sellers have a right or interest, and to the extent those rights or interests are assignable, each Seller hereby assigns, on a
non-exclusive basis, Sellers’ rights and interest in any third party representations, warranties, indemnities and guaranties with respect to the Property. Such third party representations, warranties, indemnities and guaranties to be assigned
on a non-exclusive basis may include, without limitation, any and all rights and interests relating to (a) work performed by third parties on or at the Property, and (b) the contracts Sellers (or their asset manager) entered into with
respect to the Property. This provision shall survive the close of Escrow. 
 9.5 Assignment. No Seller shall assign its
rights under this Agreement, except to its accommodator and in such case, subject to the conditions set forth herein, without first obtaining Buyer’s written consent, which consent may be withheld in Buyer’s sole and absolute discretion
and is subject to the approval of Lender. No such assignment shall operate to release the assignor thereunder from the obligation to perform all obligations of Seller hereunder or a release of any Seller or any guarantor under the Loan from its
obligations under the Loan Documents. 
 9.6 Notices. Unless otherwise specifically provided herein, all notices, demands
or other communications given hereunder shall be in writing and shall be addressed as follows: 

 If to Sellers, to the 

parties listed in Ex. D: 
 c/o Griffin Capital 
 2121 Rosecrans Avenue, Suite 3321 

El Segundo, California 90245 
 Tel: (310) 606-5900 
 If to Buyer, to the address listed under
Buyer’s name on the signature page to this Agreement. 
 Any party may change such address by written
notice to the Escrow Agent and the other party. Unless otherwise specifically provided for herein, all notices, payments, demands or other communications given hereunder shall be deemed to have been duly given and received (i) upon personal
delivery or (ii) as of the third Business Day after mailing by United States registered or certified mail, return receipt requested, postage prepaid, addressed as set forth above, or (iii) the date of receipt after deposit with FedEx or
other similar overnight delivery system, specifying receipted delivery. 
 9.7 Eminent Domain. If, prior
to the close of Escrow, all of the Property is taken or appropriated by any public or quasi-public authority under the power of eminent domain or Sellers receive actual notice of any pending or threatened condemnation proceedings affecting all of
the Property, then Buyer may terminate this Agreement without further liability hereunder. In the event of a partial taking of the Property or the threatened partial taking of the Property with respect to which any Seller has received actual notice
that materially and adversely affects the ability to operate the Property for the purposes it is currently operated, then Buyer may elect to either (a) terminate this Agreement or (b) purchase the Buyer’s Interest with a reduction in
the Purchase Price in an amount equal to the condemnation award actually received by Buyer from the condemning authority with respect to Seller’s Interest. In the event of a threatened taking or a lack of finality of any proceedings to
determine the award in an actual taking, Escrow shall close and Sellers shall assign to Buyer its interest in any condemnation award with respect to Buyer’s Interest made by the governmental entity. 

9.8 Loss or Damage. Buyer shall have no right to terminate this Agreement in the event of any loss or damage to
the Property, provided that Buyer shall have the right to receive an assignment of any insurance proceeds received by Seller with respect to such loss upon the close of Escrow. 

9.9 Periods of Time. All time periods referred to in this Agreement include all Saturdays, Sundays and state or
United States holidays, unless Business Days are specified, provided that if the date or last date to perform any act or give any notice with respect to this Agreement falls on a Saturday, Sunday or state or national holiday, such act or notice may
be timely performed or given on the next succeeding Business Day. 
 9.10 Counterparts. This Agreement
and any other document or agreement executed in connection with the transactions contemplated hereunder may be executed in two or more counterparts, each of which shall be deemed an original and all of which when taken together shall be deemed fully
executed originals. Signature pages to this Agreement (or any other document executed in connection with the transactions contemplated hereunder) may be detached from any copy of the agreement in question without impairing the legal effect of any
signatures or notaries thereon, and may be attached to another counterpart of the agreement in question identical in form, but having attached to it additional signature pages. 

9.11    Joint and Several Liability. If any party consists of more than one person or entity,
the liability of each such person or entity signing this Agreement shall be joint and several. 

9.12    Choice of Law. This Agreement shall be construed and enforced in accordance with
internal the laws of the State of California, without regard to conflict of laws principles. 

 9.13    Third Party Beneficiaries. Buyer and
Seller do not intend to benefit any party (including any other Tenants in Common) that is not a party to this Agreement and no such party shall be deemed to be a third party beneficiary of this Agreement or any provision hereof. 

9.14    Severability. If any term, covenant, condition, provision or agreement herein
contained is held to be invalid, void or otherwise unenforceable by any court of competent jurisdiction, such fact shall in no way affect the validity or enforceability of the other portions of this Agreement. 

9.15    Binding Agreement. Subject to any limitation on assignment set forth herein, all terms
of this Agreement shall be binding upon, inure to the benefit of and be enforceable by the parties hereto and their respective legal representatives, successors and assigns. 

9.16    ARBITRATION OF DISPUTES. 

9.16.1 ALL CLAIMS SUBJECT TO ARBITRATION. ANY DISPUTE, CONTROVERSY OR OTHER CLAIM ARISING UNDER, OUT OF OR
RELATING TO THIS AGREEMENT OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREBY, OR ANY AMENDMENT THEREOF, OR THE BREACH OR INTERPRETATION HEREOF OR THEREOF, SHALL BE DETERMINED AND SETTLED BY BINDING ARBITRATION IN THE CITY OF LOS ANGELES, STATE OF
CALIFORNIA, IN ACCORDANCE WITH THE CALIFORNIA CIVIL CODE AND CODE OF CIVIL PROCEDURE, AND THE RULES AND PROCEDURES OF THE AMERICAN ARBITRATION ASSOCIATION. THE PREVAILING PARTY SHALL BE ENTITLED TO AN AWARD OF ITS REASONABLE COSTS AND EXPENSES
INCLUDING BUT NOT LIMITED TO ATTORNEYS’ FEES. ANY AWARD RENDERED THEREIN SHALL BE FINAL AND BINDING ON EACH AND ALL OF THE PARTIES THERETO AND THEIR PERSONAL REPRESENTATIVES, AND JUDGMENT MAY BE ENTERED THEREON IN ANY COURT OF COMPETENT
JURISDICTION. 
 9.16.2 WAIVER OF LEGAL RIGHTS. BY INITIALING IN THE SPACE BELOW, THE PARTIES
ACKNOWLEDGE AND AGREE TO HAVE ANY DISPUTE ARISING OUT OF THE MATTERS INCLUDED IN THIS ARTICLE DECIDED BY NEUTRAL ARBITRATION AS PROVIDED UNDER CALIFORNIA LAW AND THAT THEY ARE WAIVING ANY RIGHTS THEY MAY POSSESS TO HAVE THE DISPUTE LITIGATED IN
A COURT OR BY JURY TRIAL. THE PARTIES FURTHER ACKNOWLEDGE AND AGREE THAT THEY ARE WAIVING THEIR JUDICIAL RIGHTS TO DISCOVERY AND APPEAL EXCEPT TO THE EXTENT SUCH RIGHTS ARE SPECIFICALLY INCLUDED IN THIS SECTION. IF EITHER PARTY REFUSES TO SUBMIT TO
ARBITRATION AFTER EXECUTION OF THIS AGREEMENT AND INITIALING BELOW, SUCH PARTY MAY BE COMPELLED TO ARBITRATE UNDER THE AUTHORITY OF THE CALIFORNIA CODE OF CIVIL PROCEDURE. EACH PARTY’S AGREEMENT TO THIS SECTION IS VOLUNTARY. THE PARTIES
HAVE READ AND UNDERSTAND THE FOREGOING AND AGREE TO SUBMIT DISPUTES ARISING OUT OF THE MATTERS INCLUDED IN THIS SECTION 8 TO NEUTRAL ARBITRATION. 
 SEE ATTACHED FOR INITIAL BLOCKS 

9.17    ACCEPTANCE OR REJECTION OF BUYER’S OFFER. THIS AGREEMENT DOES NOT CONSTITUTE AN
OFFER OF ANY KIND BY BUYER AND SHALL NOT BIND BUYER UNLESS DULY EXECUTED AND DELIVERED BY BOTH BUYER AND SELLER. 
 9.18    Broker’s Commission. Seller and Buyer each represent and warrant to the other party that no brokerage, finder’s fee or other compensation is due and payable
with respect to the transaction contemplated herein arising out of any action or representation by such party other than (a) the disposition fee payable to Seller’s asset manager, which shall be paid by Seller at its sole cost and expense;
and (b) any commission associated with the sale or redeployment of equity in the Property and payable to the party identified in Exhibit C attached hereto and by this reference, made a part hereof

 
(“Advisor”), which shall be paid by Seller pursuant to separate written agreement. Each of Seller and Purchaser shall indemnify, defend and hold the other party harmless from and
against any loss, damages, costs and expenses (including, but not limited to, attorneys’ fee and costs) incurred by such party by reason of any breach or inaccuracy of its representations and warranties contained in this Section 9.18.

 9.19    Tax Deferred Exchange Cooperation. Any Seller may elect to exchange the
Property for other property in a transaction qualifying under Internal Revenue Code Section 1031. Buyer and Seller agree that Buyer will reasonably cooperate with Seller to effectuate such exchange, at Seller’s sole cost and expense, so
long as (a) such electing Seller does not delay the closing of the transactions contemplated herein; and (b) Buyer’s Lender does not disapprove of the same. Any Seller electing to enter into such an exchange agrees to indemnify,
defend and hold Buyer harmless for any loss, damage, claim or liability to the extent arising out of Buyer’s agreement to permit performance by an accommodation party. Upon designation of an accommodation party, Buyer shall render performance
of all of its obligations to the accommodation party. Assignment of Seller’s obligations hereunder shall be subject to the approval of any lender of Buyer. 

9.20    Recordation. This Agreement shall not be recorded or filed in the public land or other
public records of any jurisdiction by either party and any attempt to do so may be treated by the other party as a breach to this Agreement, subject, nevertheless, to any statutory reporting requirements of Buyer. 

9.21    Attorneys’ Fees. If any action is brought by either party against the other
party, relating to or arising out of this Agreement, the transactions described herein or the enforcement hereof, or with respect to a breach of a representation or warranty hereunder, the prevailing party shall be entitled to recover from the other
party reasonable attorneys’ fees, costs and expenses incurred in connection with the prosecution or defense of such action. For purposes of this Agreement, the term ‘attorneys’ fees’ or ‘attorneys’ fees and costs’
means the fees and expenses of counsel to the parties hereto, which may include printing, photostating, duplicating and other expenses, air freight charges, fees billed for law clerks, paralegals, and other person not admitted to the bar but
performing services under the supervision of an attorney, and the costs and fees incurred in connection with the enforcement or collection of any judgment obtain in any proceeding. The provisions of this Section 9.21 shall survive the entry of
any judgment, and shall not merge, or be deemed to have merged, into any judgment. 

9.22    Further Assurances. Sellers shall promptly (1) cure any defects in the execution
and delivery of any documents to be provided in connection with this transaction, (2) provide, and to cause each constituent entity in Seller to provide, Lender and Buyer such additional information and documentation on Sellers and each legal
or beneficial owner of Sellers, policies, procedures and sources of funds as Lender deems necessary or prudent to enable Lender to comply with Anti-Money Laundering Laws as now in existence or hereafter amended, and (3) execute and deliver, or
cause to be executed and delivered, all such other documents, agreements and instruments as Lender or Buyer may reasonably request to correct any omissions in the documents to be provided hereunder, including, without limitation, those needed, to
perfect, protect or preserve any Liens created under any of the Loan Documents, or to make any recordings, file any notices, or obtain any consents, as may be necessary or appropriate in connection therewith. 

[Signatures on following page] 

 IN WITNESS WHEREOF, this Agreement has been executed as of the Effective Date. 

BUYER: 
 THE GC
NET LEASE (CARLBAD) INVESTORS, LLC 
 a Delaware limited liability company 

By:  Griffin Capital Corporation 
 Its:   Sole Member 
 By: /s/ Kevin A. Shields 

Name: Kevin A. Shields 
 Its: CEO 
 Dated: May 13, 2011 (“Effective Date”) 

 

			
	 SELLER:

	
	 Griffin Capital (Carlsbad Pointe) Investor 4, LLC,

a Delaware limited liability company

		
	 By:
	 	 /s/ Diane Howard Belding

		 	       Diane Howard Belding

		
	 Its:
	 	 Managing Member

	
	 Griffin Capital (Carlsbad Pointe) Investor 6, LLC,

a Delaware limited liability company

		
	 By:
	 	 /s/ Mark A. Rooker

		 	       Mark A. Rooker, Managing Member

	
	 Griffin Capital (Carlsbad Pointe) Investor 7, LLC,

a Delaware limited liability company

		
	 By:
	 	 /s/ John Crncich

		 	       John Crncich, Managing Member

	
	 Griffin Capital (Carlsbad Pointe) Investor 8, LLC,

a Delaware limited liability company

		
	 By:
	 	 /s/ Michelle C. Rooker

		 	       Michelle C. Rooker

 
					
	 Griffin Capital (Carlsbad Pointe) Investor 9, LLC,

a Delaware limited liability company

		
	 By:
	 	       The Hunt Trust, dated March 18, 1993

	 Its:
	 	       Managing Member

		
	 By:
	 	 /s/ Steven M. Hunt

		 	        Steven M. Hunt, Trustee

		
	 By:
	 	 /s/ Marilyn B. Hunt

		 	        Marilyn B. Hunt, Trustee

	
	 Griffin Capital (Carlsbad Pointe) Investor 11, LLC,

a Delaware limited liability company

		
	 By:
	 	       Hunt Trust, dated November 4, 1998

	 Its:
	 	       Managing Member

			
		 	       By:
	 	 /s/ Tyler Hunt

		 		 	        Tyler Hunt, Trustee

			
		 	       By:
	 	 /s/ Patsy Hunt

		 		 	        Patsy Hunt, Trustee

	
	 Griffin Capital (Carlsbad Pointe) Investor 13, LLC,

a Delaware limited liability company

		
	 By:
	 	 /s/ Harold B. Garner Jr.

		 	        Harold B. Garner Jr.

		
	 Its:
	 	 Managing Member

	
	 Griffin Capital (Carlsbad Pointe) Investor 15, LLC,

a Delaware limited liability company

		
	 By:
	 	       Jackmar Realty Corporation

	 Its:
	 	       Managing Member

			
		 	       By:
	 	 /s/ William Schachter

		 		 	        William Schachter

			
		 	       Title:
	 	 Member

	
	 Griffin Capital (Carlsbad Pointe) Investor 16, LLC,

a Delaware limited liability company

		
	 By:
	 	 /s/ Richard G. Tait

		 	        Richard G. Tait, Managing Member

 
							
	 Griffin Capital (Carlsbad Pointe) Investor 17, LLC,

a Delaware limited liability company

		
	 By:
	 	 Restated Forsyth Trust, dated September 19, 2000

	 Its:
	 	 Managing Member

			
		 	 By:
	 	 /s/ Gordon Forsyth

		 		 	         Gordon Forsyth, Trustee

			
		 	 By:
	 	 /s/ Veronica Forsyth

		 		 	         Veronica Forsyth, Trustee

	
	 Griffin Capital (Carlsbad Pointe) Investor 18, LLC,

a Delaware limited liability company

		
	 By:
	 	 VELO PARTNERS, a California general partnership

	 Its:
	 	 Sole Member

			
		 	 By:
	 	 Sandor Zirulnik and Frances Burgess Trust U/D/T 4/17/06

		 	 Its:
	 	 General Partner

				
		 		 	 By:
	 	 /s/ Sandor P. Zirulnik

		 		 		 	         Sandor P. Zirulnik, Trustee

				
		 		 	 By:
	 	 /s/ Frances N. Burgess

		 		 		 	         Frances N. Burgess, Trustee

			
		 	 By:
	 	 Steve and Jennifer Banker, husband and wife, as community property

		 	 Its:
	 	 General Partner

				
		 		 	 By:
	 	 /s/ Steve Banker

		 		 		 	         Steve Banker

				
		 		 	 By:
	 	 /s/ Jennifer Banker

		 		 		 	         Jennifer Banker

			
		 	 By:
	 	 R/M Sabre Street Associates, LLC, a Delaware limited liability company

		 	 Its:
	 	 General Partner

				
		 		 	 By:
	 	 /s/ Ingrid J.B. Madsen

		 		 		 	         Ingrid J.B. Madsen, a Manager

				
		 		 	 By:
	 	 /s/ Victor Rauch

		 		 		 	         Victor Rauch, a Manager

 
					
	 Griffin Capital (Carlsbad Pointe) Investor 20, LLC,

a Delaware limited liability company

		
	By:	 	The Finberg Trust of 1995, dated April 4, 1995
	Its:	 	Managing Member
			
		 	By:	 	/s/ Roger Finberg
		 		 	      Roger Finberg, Trustee
	
	 Griffin Capital (Carlsbad Pointe) Investor 21, LLC,

a Delaware limited liability company

		
	By:	 	The Hans Kruger Trust
	Its:	 	Managing Member
			
		 	By:	 	/s/ Hans Kruger
		 		 	      Hans Kruger, Trustee
	
	 Griffin Capital (Carlsbad Pointe) Investor 22, LLC,

a Delaware limited liability company

		
	By:	 	Richard C. and Juanita S. Boulger Revocable Trust
	Its:	 	Managing Member
			
		 	By:	 	/s/ Richard C. Boulger
		 		 	      Richard C. Boulger, Trustee
			
		 	By:	 	/s/ Juanita S. Boulger
		 		 	        Juanita S. Boulger, Trustee
	
	 Griffin Capital (Carlsbad Pointe) Investor 23, LLC,

a Delaware limited liability company

			
		 	By:	 	/s/ James V. Dusserre
		 		 	      James V. Dusserre, Managing Member
			
		 	By:	 	/s/ Joanne C. Dusserre
		 		 	      Joanne C. Dusserre, Managing Member
	
	 Griffin Capital (Carlsbad Pointe) Investor 24, LLC,

a Delaware limited liability company

		
	By:	 	Trust of James Rossi and Noreen Rossi, dated March 4, 1993
	Its:	 	Managing Member
			
		 	By:	 	/s/ James Rossi
		 		 	      James Rossi, Trustee

 
					
	 Griffin Capital (Carlsbad Pointe) Investor 25, LLC,

a Delaware limited liability company

		
	By:	 	2000 Harvey Hunt Duryee and Christine Hawgood Duryee Revocable Trust
	Its:	 	Managing Member
			
		 	By:	 	/s/ Harvey Hunt Duryee
		 		 	      Harvey Hunt Duryee, Trustee
			
		 	By:	 	/s/ Christine Hawgood Duryee
		 		 	      Christine Hawgood Duryee, Trustee
	
	 Griffin Capital (Carlsbad Pointe) Investor 26, LLC,

a Delaware limited liability company

		
	By:	 	Windman Declaration of Trust
	Its:	 	Managing Member
			
		 	By:	 	/s/ Murray Windman
		 		 	      Murray Windman, Trustee
			
		 	By:	 	/s/ Pauline Windman
		 		 	      Pauline Windman, Trustee
	
	 Griffin Capital (Carlsbad Pointe) Investor 27, LLC,

a Delaware limited liability company

		
	By:	 	/s/ Peter J. Martinelli
		 	      Peter J. Martinelli, Managing Member
	
	 Griffin Capital (Carlsbad Pointe) Investor 28, LLC,

a Delaware limited liability company

		
	By:	 	/s/ Phillip Steinschreiber
		 	      Phillip Steinschreiber, Managing Member

 CONSENT OF ESCROW AGENT 

The undersigned Escrow Agent hereby agrees to (i) accept the foregoing Agreement, (ii) be Escrow Agent under
the Agreement and (iii) be bound by the Agreement in the performance of its duties as Escrow Agent; provided, however, the undersigned shall have no obligations, liability or responsibility under (i) this Consent or otherwise unless and
until the Agreement, fully signed by the parties, has been delivered to the undersigned or (ii) any amendment to the Agreement unless and until the same shall be accepted by the undersigned in writing. 

Dated: May 13, 2011 (the “Opening of Escrow”) 

CHICAGO TITLE COMPANY 
 (“Escrow Agent”) 
  

					
		 	 By:
	 	 X

			
		 	 Its:
	 	 Escrow Officer

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00189-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00189-of-00352.parquet"}]]