Document:

EX-10.1

REAL PROPERTY PURCHASE AGREEMENT

901 CIVIC CENTER DRIVE

SANTA ANA, CALIFORNIA

SELLER:

SANTA ANA ARTS IV, INC.,

a California corporation

BUYER:

TRIPLE NET PROPERTIES, LLC,

a Virginia limited liability company

Dated as of March 27, 2006

1

TABLE OF CONTENTS{10060024.1} 34701,0079

	 	 	 	 	 	 	 
	1.	 	PURCHASE AND SALE 1
	 
	 	 	 	 	 	 
	2.	 	PURCHASE PRICE 2
	 
	 	 	 	 	 	 
	3.	 	PAYMENT OF PURCHASE PRICE 2
	 
	 	 	 	 	 	 
	
 
	 	 	3.1,	 	 	Deposit 2
	 
	 	 	 	 	 	 
	
 
	 	 	3.2.	 	 	Closing Payment 2
	 
	 	 	 	 	 	 
	
 
	 	 	3.3.	 	 	LIQUIDATED DAMAGES; DISPOSITION OF

DEPOSIT 2
	 
	 	 	 	 	 	 
	
 
	 	 	3.4.	 	 	Remedies for Seller Default 3
	 
	 	 	 	 	 	 
	
 
	 	 	3.5,	 	 	Discharge of Existing Liens 3
	 
	 	 	 	 	 	 
	4.	 	TITLE 4
	 
	 	 	 	 	 	 
	
 
	 	 	4.1.	 	 	Title 4
	 
	 	 	 	 	 	 
	
 
	 	 	4.2.	 	 	Title Contingency 4
	 
	 	 	 	 	 	 
	5.	 	“AS IS” SALE 5
	 
	 	 	 	 	 	 
	6.	 	CLOSING 5
	 
	 	 	 	 	 	 
	
 
	 	 	6.1.	 	 	Escrow 6
	 
	 	 	 	 	 	 
	
 
	 	 	6.2.	 	 	Conditions to Closing; Delivery to

Parties 7
	 
	 	 	 	 	 	 
	
 
	 	 	6.3.	 	 	Closing Costs 7
	 
	 	 	 	 	 	 
	
 
	 	 	6.4.	 	 	Prorations 7
	 
	 	 	 	 	 	 
	7,	 	DESTRUCTION/CONDEMNATION OF PROPERTY I0
	 
	 	 	 	 	 	 
	8.	 	REPRESENTATIONS AND WARRANTIES; CERTAIN COVENANTS 11
	 
	 	 	 	 	 	 
	
 
	 	 	8.1.	 	 	Representations and Warranties of

Seller 11
	 
	 	 	 	 	 	 
	
 
	 	 	8.2.	 	 	Representations and Warranties of

Buyer 13
	 
	 	 	 	 	 	 
	
 
	 	 	8.3.	 	 	Certain Interim Covenants of Seller 14
	 
	 	 	 	 	 	 
	9.	 	INDEMNIFICATION OBLIGATIONS 14
	 
	 	 	 	 	 	 
	
 
	 	 	9.1.	 	 	Indemnification by Seller 14
	 
	 	 	 	 	 	 
	
 
	 	 	9.2.	 	 	Indemnification by Buyer 14
	 
	 	 	 	 	 	 
	
 
	 	 	9.3.	 	 	Generally, 15
	 
	 	 	 	 	 	 
	10.	 	CONDITIONS TO CLOSING 15
	 
	 	 	 	 	 	 
	
 
	 	 	10.1.	 	 	Seller’s Conditions to Closing 15
	 
	 	 	 	 	 	 
	
 
	 	 	10.2,	 	 	Buyer’s Conditions to Closing 16
	 
	 	 	 	 	 	 
	11.	 	ENVIRONMENTAL AGREEMENT 16
	 
	 	 	 	 	 	 
	12.	 	MISCELLANEOUS 17

	 	 	 	 	 
	12.1. Brokerage Issues 
	 	 	17	 
	12.2. Limitation of Liability 
	 	 	18	 
	12.3. Successors and Assigns 
	 	 	18	 
	12.4. Notices 
	 	 	19	 
	12.5. Legal Costs 
	 	 	20	 
	12.6. Further Instruments 
	 	 	20	 
	12.7. Natural Hazard Disclosure Requirement Compliance,, 
	 	 	20	 
	12.8. Matters of Construction 
	 	 	20	 

2

12,9, Waiver of Trial by Jury 23"A” “B” “C” “D”

“E”

“F”

“G”

“H”

 “I”

“J”

“K”

“L”

“M”

(10060024.1) 34701,0079

	 	 	 	 	 
	12.10. Press Releases, 
	 		23	
	12.11, Counterparts 
	 		23	
	12.12. Time of the Essence 
	 		23	
	12.13. SEC Rule 3-14 Post-Closing Cooperation 
	 		23	

First

	 	 	 	EXHIBITS : Mentioned In Section	 

	 	 	 	 	 
	DESCRIPTION OF THE LAND
	 	Recital A

	EXCLUDED PERSONAL PROPERTY
	 	Recital C

	[RESERVED]
	 	 	N/A	 
	FORM OF DEED
	 	 	6.1.1	 
	INTENTIONALLY OMITTED
	 	 	N/A	 
	FORM OF LEASE ASSIGNMENT AND ASSUMPTION
	 	 	6.1.1	 
	FORM OF BILL OF SALE, ASSIGNMENT AND ASSUMPTION
	 	 	6.1.1	 
	FORM OF CERTIFICATE OF `NON FOREIGN” STATUS
	 	 	6.1,1	 
	FORM OF NOTICE TO TENANTS
	 	 	6.1,1	 
	FORM OF CLOSING CERTIFICATE
	 	 	6.1.1	 
	EXCEPTIONS TO REPRESENTATIONS AND WARRANTIES
	 	 	8.1.5	 
	RENT ROLLS
	 	 	8.1.8	 
	FORM OF SEC REPRESENTATION LETTER.
	 	 	12.13	 

3

REAL PROPERTY.PURCHASE AGREEMENT

THIS AGREEMENT (“Agreement”) is made as of March 27, 2006 (the “Effective Date”), by and
between SANTA ANA ARTS IV, INC., a California corporation f/k/a American Pacific Secured File
Storage, Inc., a California corporation (`Seller”) and TRIPLE NET PROPERTIES, LLC, a Virginia
limited liability company (“Buyer”).

RECITALS:

WHEREAS, Seller is the owner of an office building located at 901 Civic Center Drive, in
the City of Santa Ana, County of Orange, State of California; and

WHEREAS, Buyer desires to purchase, and Seller is willing to sell, the Property (as
defined below), on the terms and conditions documented in this Agreement.

NOW, THEREFORE, in consideration of the respective promises contained in this
Agreement, Buyer and Seller agree as follows:

1. PURCHASE AND SALE. Subject to the terms and conditions of this Agreement, Seller
shall sell to Buyer, and Buyer shall purchase from Seller, the following (collectively, the
“Property”):

A. That real property located at 90.1 Civic Center Drive, in the City of Santa Ana, County of
Orange, State of California, as more particularly described in Exhibit “A”, together with,
all and singular, the tenements, hereditaments, easements, rights of way and appurtenances
belonging or appertaining to the same (the ‘Land”);

B. All improvements, structures and fixtures (the "Improvements”) now or on the
“Closing Date” (as defined below) located upon the Land;

C. All tangible personal property (the “Personal Property”) to the extent owned by Seller now
(except as may be used or disposed of by Seller in the ordinary course of business prior to the
Closing Date) or as of the Closing Date, located on or about the Land, or Improvements or attached
or appurtenant thereto or used in connection with the operation thereof, excluding only the items
described in Exhibit “B”; and

D. All intangible property to the extent owned by Seller now (except as may be used or
disposed of by Seller in the ordinary course of business prior to the Closing Date) or as of the
Closing Date in connection with the Land, the Improvements or the Personal Property, including

all leases, third party contracts and service agreements (including the Tenant Leases add the
Service Contracts as defined below, and any and all guarantees of Tenant Leases) to the extent
assumed by Buyer, building and trade names, business licenses, warranties (including those
relating to the construction or fabrication), utility contracts, advertising materials exclusive
to the Property (including any Web site owned by Seller and dedicated exclusively to the
Property), plans and specifications, governmental approvals and development rights to the extent

(10060024,1} 34701;0079

Page 1 of 25

4

transferable without third party approval, related to the Land, the Improvements or the
Personal Property or any part thereof (the `Intangible Property”).

2. PURCHASE PRICE. The purchase price for the Property shall be Fourteen Million
Seven Hundred Thousand Dollars ($14,700,000.00) (the “Purchase Price”).

3. PAYMENT OF PURCHASE PRICE. The Purchase Price shall be paid to Seller by Buyer as
follows:

3.1. Deposit. As a condition to the effectiveness of this Agreement, North American
Title Company, attention: Christine English (“Escrow Holder”) shall have received both the License
Fee and the Deposit pursuant to, and as defined in, that certain agreement captioned “Access and
Indemnification Agreement” between Seller and Buyer and dated March 24, 2006 (the “Access
Agreement”), The Deposit shall be released by Escrow Holder to Owner pursuant to the provisions of
the Access Agreement and (together with the License Fee) credited to the Purchase Price upon tlr
Close of Escrow, If the Close of Escrow fails to occur for any reason other than a Refund Event
(as defined below), then Seller shall be entitled to retain the License Fee and the Deposit as
provided in Section 3.3. If the Closing does not occur as a result of a Refund Event, then Seller
shall immediately return the License Fee and the Deposit to Buyer (without limiting any other
rights or remedies of Buyer but subject to the limitation of Buyer’s Remedies as set forth in this
Agreement). A “Refund Event” shall mean (a) a default by Seller following satisfaction, in all
material respects, of all conditions precedent to Seller’s obligation to sell the Property to
Buyer, or (b) the failure to satisfy the conditions to Buyer’s performance under this Agreement as
set forth in Sections 3.5, 4.2, 10.2.1 and 10.2.2, or (e) a casualty loss or taking that
constitutes a “Material Event” pursuant to Section 7, below.

3.2, Closing Payment, The balance of the Purchase Price, as adjusted by the prorations
and credits specified in this Agreement, shall be paid by wire transfer of immediately available
federal funds to permit this transaction to close no later than April 24, 2006 (the “Closing Date”
or “Close of Escrow‘). The amount to be paid under the first sentence of this Section3.2 is
referred to in this Agreement as the “Closing Payment.” Time is of the essence, If Close of Escrow
fails to occur on the scheduled Closing Date described in this Section, this Agreement
and the Escrow shall automatically terminate, Buyer shall have no further right, title or
interest in the Property, and, unless Escrow fails to occur as a result of a Refund
Event, Seller shall have the right to retain the License Fee and the Deposit as
liquidated damages pursuant to Section 3.3, below.

3.3, LIQUIDATED DAMAGES; DISPOSITION OF DEPOSIT. IF TIIE CLOSING DOES NOT OCCUR FOR
ANY REASON OTHER THAN A REFUND EVENT, THE PARTIES ACKNOWLEDGE THAT, IT WOULD BE IMPRACTICAL AND
EXTREMELY DIFFICULT TO ESTIMATE THE DAMAGES WHICH SELLER MAY SUFFER. THEREFORE, THE PARTIES HAVE
AGREED THAT A REASONABLE ESTIMATE OF THE TOTAL NET DETRIMENT THAT SELLER WOULD SUFFER IN SUCH
EVENT IS AND SHALL BE THE RIGHT TO RETAIN THE LICENSE FEE AND THE DEPOSIT AS LIQUIDATED DAMAGES,
AS SELLER’S SOLE AND EXCLUSIVE REMEDY UNDER THIS AGREEMENT, AND THE PARTIES SHALL DELIVER
APPROPRIATE NOTICE TO ESCROW HOLDER TO CANCEL THE ESCROW

(10060024,1) 34701.0079

Page 2 of 25

5

MAINTAINED BY ESCROW HOLDER. SUCH LIQUIDATED DAMAGES ARE NOT INTENDED AS A FORFEITURE
OR PENALTY WITHIN THE MEANING OF APPLICABLE LAWS, IF THE CLOSING DOES NOT OCCUR AS A RESULT OF A
REFUND EVENT, THEN THE LICENSE FEE AND THE DEPOSIT SHALL BE RETURNED IMMEDIATELY TO BUYER (IN
ADDITION TO ANY OTHER. RIGHTS OR REMEDIES OF BUYER BUT SUBJECT TO THE LIMITATION OF BUYER’S
REMEDIES AS SET FORTH IN THIS AGREEMENT), IN CONSIDERATION OF SELLER RECEIVING THE, LIQUIDATED
DAMAGES, SELLER WILL BE DEEMED TO HAVE WAIVED ALL OF ITS CLAIMS AGAINST BUYER FOR DAMAGES,
NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN THIS SECTION 3.3, IF BUYER WR.ONGFULLY BRINGS
AN ACTION AGAINST SELLER FOR AN ALLEGED DEFAULT BY SELLER OF ITS OBLIGATIONS UNDER THIS AGREEMENT,
AND, IN CONNECTION WITH THAT WRONGFUL ACTION, RECORDS A LIS PENDENS OR OTHERWISE ENJOINS OR
RESTRICTS SELLER’S ABILITY TO SELL OR TRANSFER THE PROPERTY (COLLECTIVELY, “BUYER’S ACTION”),
SELLER SHALL NOT BE RESTRICTED BY THE PROVISIONS OP THIS SECTION 3.3 FROM SEEKING EXPUNGEMENT OR
RELIEF ‘ FROM THAT LIS PENDENS, INJUNCTION OR OTHER RESTRAINT, ANDMAR-28-2006 TIDE 0443 PM
Carilnu indusUes FAX NO, ?10,4399?2 P, 02/02

RECOVERING ACTUAL DAMAGES, COSTS AND EXPENSES (INCLUDING ATTORNEYS’ FEES) TO WHICH SELLER IS
OTHERWISE ENTITLED UNDER APPLICABLE LAW AS A RESULT OF BUYER’S ACTION, AND THE AMOUNT OF ANY SUCH
DAMAGES AWARDED TO SELLER SHALL NOT BE LIMITED TO THE LIQUIDATED DAMAGES SET FORTH HEREIN.
FURTHERMORE, IN NO EVENT SHALL THIS SECTION 3,3 HAVE ANY APPLICATION TO OR LIMIT SELLER’S RIGHTS
AGAINST BUYER OR BUYER’S RIGHTS AGAINST SELLER IN CONNECTION WITH ANY OF THE FOLLOWING: (1)
SECTION I I (ENVIRONMENTAL AGREEMENT), (2) SECTION 9 (INDEMNIFICATION OBLIGATIONS), (3) SECTION
I?,1 (BROKERAGE ISSUES), (4) SECTION 12.5 (LEGAL COSTS), OR (5) ANY MISREPRESENTATIONS BY BUYER.

/s/RH /s/MFH

SELLER’S INITIALS

BUYER’S INITIALS

3.4, Remedies for Seller Default, In the event of a default by Seller under this
Agreement, the remedies of Buyer shall be limited to (i) termination of this Agreement, in which
event Buyer shall be entitled to the return of the License Fee and the Deposit and recovery of
actual out-of -pocket damages according to proof but in any event not to exceed One Hundred
Thousand and No/100 Dollars ($1.00,000,00), nr (ii) an action for specific performance to
enforce the terms and conditions of this Agreement and any and all other rights and remedies of
Buyer arising from or in connection with a default by Seller are hereby waived, Buyer hereby
acknowledging that its choice of remedies as set forth in this sentence are adequate.

	 	 	 
	/s/RH

BUYER’S INITIALS

	 	/s/MFH

SELLER’S INITIALS

3.5. Discharge of Existing Liens. As a condition precedent to Buyer’s
obligation to purchase the Property, Seller shall cause all mortgages, deeds of trust and monetary
liens (including liens for delinquent taxes, mechanics’ liens and judgment liens) imposed or

I411)60112A ? j 34701.0070

Page 3 of 25

6

permitted to be imposed on the Property (the “Existing Liens”) to be fully satisfied,
released or discharged of record on or prior to the Closing Date so that the Property shall be
conveyed free of the same as of the Closing Date. To satisfy the foregoing conditions, Seller
shall pay any and all prepayment penalties or premiums and other costs or expenses, to release the
Existing Liens. prior to the Closing Date. Buyer shall have no obligation to provide
notice of disapproval of any Existing Liens, and a condition for Buyer’s benefit to Close of
Escrow shall be Title Company’s issuance of the “Title Policy” (as defined below) without Existing
Lie ns, However, Existing Liens shall not include any mechanics’, materialmen’s, design
professionals’ or other liens caused by or through Buyer or any of Buyer’s employees, contractors,
representatives, licenses, or invitees, and any such liens shall be either deemed approved title
exceptions upon Close of Escrow or, if Buyer terminates this Agreement, shall immediately be
removed from title at Buyer’s sole cost and. expense.

4, TITLE,

4.1, Title, In the event new title information is delivered to Buyer that (i) is not contained
in the title documentation (including title reports, commitments and/or underlying documents
referred to therein, or any surveys) delivered to Buyer during the “Inspection Period” (as defined
in the Access Agreement) but excluding any survey or updated survey of the Property (collectively,
the `Title Documents”), and (ii) is not the result of any acts or omissions of Buyer or any of
Buyer’s employees, contractors, representatives, licenses, or invitees (collectively, a `New Title
Matter”), Buyer shall, within five (5) business days of receipt of the New Title Matter, deliver to
Seller written notice of any objection to such New Title Matter stating in reasonable detail the
reason for the objection (a `New Title Objection Notice”), If Seller does not receive the New Title
Objection Notice within the foregoing five (5) business day period, Buyer shall be deemed to have
approved the New Title Matter(s). If Seller timely receives a New Title Objection Notice, Seller
shall as of Close of Escrow remove or endorse over any New Title Matter(s) as an exception to the
Title Policy subject to the following limitations (a “Seller’s Title Cure”): (i) with regard to any
New Title Matter that is voluntarily placed on the Property by the Seller or any of its affiliates
(including, by way of example, trust deeds, mortgage, deeds of trust, security instruments,
easements or rights of way), Seller shall cause Title Company to remove any such New Title Matter
as an exception to the Title Policy, and (ii) with regard to any New Title Matter that is
involuntarily placed on the Property through the acts or omissions of Seller or any of its
affiliates (including, by way of example, any mechanics’ liens or judgment liens), Seller shall
cause Title Company to either remove any such New Title Matter as an exception to the Title Policy
or to issue a separate endorsement(s), in a form and content reasonably acceptable to Buyer, to the
Title Policy; provided, however, the costs to be incurred by Seller with regard to any such removal
or endorsement(s) under preceding clauses (i) and (ii) (including, without limitation, the posting
of any bonds or other security) shall not exceed an amount equal. to Two Hundred Fifty Thousand and
No/100 Dollars ($250,000;00)x- f Seller elects not to proceed with a Seller Title Cure for a New
Title Matter that would cost more than Two Hundred Fifty Thousand and No/100

Dollars ($250,000.00), then Buyer may elect to terminate Escrow and this Agreement, in which
event Seller shall promptly return to Buyer both the License Fee and the Deposit.

4.2, Title Contingency,. A condition precedent to Buyer’s obligation to
purchase the Property shall be the willingness of North American Title Company

(10060024,1) 34701,0079

Page 4 of 25

7

(“Title Company”) to issue to Buyer on the Closing Date with respect to the Property, an
ALTA extended coverage owner’s policy of title insurance (the’ Title Policy”), or equivalent form
acceptable to Buyer, in the face amount of the Purchase Price (allocated as set forth in Section2,
above) and dated as of the Closing Date, indicating title to the Property is vested of record in
Buyer, with the Title Policy being subject solely to the ‘Permitted Exceptions” (as defined below).
As used herein, `Permitted Exceptions” means the following: (1) the lien of any real estate taxes
and assessments for the ‘Current Tax Year” (as defined below) and subsequent periods, provided that
the same are prorated in accordance with this Agreement; (2) such other matters set forth in the
Title Documents, other than any of the following (collectively “Disapproved Exceptions”): (i) any
Existing Liens, (ii) those matters which Seller may have elected in writing during the Inspection
Period (as defined in the Access Agreement), to remove from title, Seller having no obligation to
make such election, and (iii) New Title Matters subject to a Seller’s Title Cure, The issuance of
the Title Policy shall be in lieu of any express or implied warranty of Seller concerning title to
the Property. Buyer agrees that, in the event that it elects to proceed with the Close of Escrow,
its only remedy for damages incurred by reason or any defect in title, subject only to. Section 3
A, shall be against the Title Company. Under no circumstances shall Buyer have the right to close
Escrow, and thereafter proceed against Seller based on any title matter.

“AS IS” SALE. In accordance with paragraph 1 of the Access Agreement, and except as
otherwise expressly set forth in this Agreement and except as provided in the documents to be
delivered by Seller at Closing (but which representations and warranties as may be contained in
such closing documents shall in any event be subject to the restrictions and limitations set forth
in this Agreement), Buyer acknowledges that it has satisfied itself with regard to the feasibility
of the Property for Buyer’s intended purposes, Buyer agrees that (a) except as set forth in Section
8,1 of this Agreement, the sale of the Property shall be concluded without warranties,
representations or guarantees made by Seller; (b) the Property shall be purchased by Buyer on an
“AS-IS” basis as to the physical condition of the Property and all components thereof and as to all
other aspects affecting or which could affect all or any part of the Property; (c) all reports,
studies, analyses, maps, drawings, materials and other documents are delivered by Seller to Buyer
only as an accommodation to Buyer and not with the intent that these documents be relied on by
Buyer, except to the extent that Seller have independently confirmed in writing to Buyer the
validity or completeness of those documents and the information contained in them or made
representations and warranties in this. Agreement with respect to same; and (d) Buyer’s decision to
purchase the Property shall be based only on the investigation, study and analysis of all aspects
of the Property as made by Buyer and/or Buyer’s agents, employees, representatives and/or
independent contractors (collectively, “Buyer’s Investigation”) and the representations,
warranties and covenants made by Seller herein, It is expressly understood by Buyer and Seller that
all statements and representations made by the Brokers (as defined in Section 12,1,
below) and any and all of Seller’s agents, employees and/or independent contractors,
other than the representations and warranties contained in Seetion8.1, below, and in
paragraph 3 of the Access Agreement, (i) are intended by Buyer and Seller to be made only as an
accommodation to Buyer and Buyer’s Investigation and not in lieu of Buyer’s Investigation, and (ii)
are not to be relied and acted on by Buyer.

6. CLOSING. The closing (“Closing” or “Close of Escrow’) of the sale and purchase
herein provided shall be consummated through the mail with all deliveries required

(1.0060024,1} 34701,0079

Page 5 of 25

8

hereunder being made to Escrow Holder on or before 2:00 p.m. Pacific Standard Time on
the Closing Date.

6,1. Escrow. On or before 2:00 p.m. Pacific Standard Time on the Closing Date,
the parties shall deliver to Escrow Holder the following:

6.1.1. By Seller, Seller shall deliver or cause to be delivered (a) a duly executed
and acknowledged original grant deed covering the Land, and all related Improvements, in the form
of Exhibit “D” (the geed”); (b) four (4) duly executed and acknowledged
counterpart originals of the assignment and assumption covering the Tenant Leases and any security
deposits thereunder, substantially in the form of Exhibit ''F” (the “Lease Assignment and
Assumption”); (e) four (4) duly executed and acknowledged counterpart originals of the bill of
sale, assignment and assumption covering the Personal Property and Intangible Property, in the form
of Exhibit “G” (the “Bill of Sale, Assignment and Assumption”); (d) a certificate of Seller
respecting the non foreign status of Seller in the form of Exhibit “II” (the “FIRPTA
Certificates”); (e) duly executed counterpart originals of a notice to each tenant of the Property
in the form of Exhibit (collectively, the “Notices to Tenants “); (f) a notice of sale and
assignment, in a form reasonably acceptable to Buyer, to each provider under the Service Contracts,
if any, which Buyer has expressly elected to assume during the Inspection Period pursuant to the
Access Agreement; (g) evidence reasonably satisfactory to Title Company that all necessary
authorizations of the transaction provided herein has been obtained by Seller, such other documents
and instruments, payments,. indemnities, releases and agreements as may be reasonably required by
Title Company and shall perform such other acts as Title Company shall reasonably require in order
to issue the Title Policy, and such other instruments as may be reasonably requested by Title
Company in order to consummate the transaction contemplated hereby and issue the Title Policy; (h)
releases or requests for reconveyances on Title Company’s standard forms executed by the
beneficiaries (collectively, “Releases”) of the Existing Liens. satisfactory to Title Company; (i)
to the extent not previously delivered to Buyer and within the possession or control of Seller or
its affiliates, originals of all items within the Due Diligence Package (as defined in the Access
Agreement) (including originals of all Tenant Leases, Service Contracts and Permits [as defined in

subsection 12,8,13(0,. below], and copies of all correspondence. and billing files and records
related to the Tenant Leases and the Service Contracts); (j). a closing statement to the extent
approved by Seller dated as of the Closing Date and duly executed by Seller, setting forth, among
other things, all payments to and from Escrow in connection with the purchase and sale of the
Property (the “Closing Statement”); (k) to the extent Seller holds any letter of credit or a
negotiable instrument pursuant to any Tenant Lease, the original of such letter of credit or
instrument together with any documentation required to effect the transfer of such instruments to
Buyer upon Closing; and (1) a certificate (the “Closing Certificate”), dated as of the Closing Date
and duly executed by Seller, in the form of Exhibit “J”; representing to Buyer that the
representations and warranties of Seller set forth in Section 8,1, below, are true and correct
without exception as. of the Closing Date as if made on and as of the Closing Date (or, specifying
in reasonable detail such exceptions, if any, which then exist, provided that Seller shall not
intentionally or negligently take any action or omit to take any action, which action or omission
would result in any such exception).

(10060024,1) 347010079

Page 6 of 25

9

6.1.2. By Buyer, Buyer shall deliver (a) the Closing Payment by wire transfer
of immediately available federal funds; (b) four (4) duly executed and acknowledged counterpart
originals of the Lease Assignment and Assumption; (c) four (4) duly executed and acknowledged
counterpart originals of the Bill of Sale, Assignment and Assumption; and (d) evidence reasonably
satisfactory to Title Company that all necessary authorizations of the transaction provided
herein have been obtained by Buyer, and such other documents and instruments as may be reasonably
requested by Title Company in order to consummate the transaction contemplated hereby and issue
the Title Policy, evidence reasonably satisfactory to Title Company of all necessary
authorizations of the transaction.

6,2. Conditions to Closing; Delivery to Parties, Before Close of Escrow, Seller and
Buyer shall execute and deliver to Escrow Holder closing escrow instructions (the “Closing
Instructions “) in keeping with the terms of this Agreement, Seller shall use its commercially
reasonable best efforts to deliver to Buyer and Escrow Holder the information required for
prorations contemplated pursuant to Section 6,4, below, at least five (5) business days before the
scheduled Close of Escrow. Upon the satisfaction of the conditions set forth in Section 10, below,
then Escrow Holder shall deliver the items described in Section6.1, above, and take all other
actions authorized by the Closing Instructions.

6,3, Closing Costs. Buyer shall pay (1) fifty percent (50%) of all costs and expenses
of the escrow arrangements; (2) the cost of all endorsements relating to the Title Policy,
including the cost of obtaining any extended coverage; (3) the cost for an updated survey of the
Property; (4) fifty percent (50%) of all recording costs related to the Deed; and (5) the
cost of any of its examinations and inspections and audits of the Property, including the cost of
any of its appraisals, environmental, physical and financial audits, if applicable, all
costs associated with any financing to be obtained by Buyer, Seller shall pay (a) all documentary
transfer taxes payable in connection with the recordation of the Deed; (b) fifty percent
(50%) of the cost of the escrow arrangements; (c) the premium applicable to the CLTA portion of
Title Policy; (d) fifty percent (50%) of all recording costs related to the Deed; and (e)
the recording fees for the Releases or for the release of other matters constituting Disapproved
Exceptions, All other closing costs not specifically allocated herein shall be paid by the parties
as is customary in the county in which the Property is located, Seller and Buyer shall”
each pay their respective (i) legal fees and expenses, (ii) share of prorations (as provided
below), and (iii) cost of all opinions, certificates, instruments, documents and papers required to
be delivered, or caused to be delivered, by it hereunder and the cost of all its performances under
this Agreement.

6.4, Prorations.

6.4.1. Items to be Prorated. The following shall be prorated between Seller and
Buyer as of the Closing Date:

(a) All real estate taxes and assessments on the Property payable in respect to the current
fiscal year of the applicable taxing authority in which the Closing Date occurs (the `Current Tax
Year”). Such real estate taxes and assessments shall be prorated on a per diem basis based upon the
number of days in the Current Tax Year before the Closing Date (which shall be allocated to Seller)
and the number of days in the Current Tax Year on and after the Closing Date (which shall be
allocated to Buyer). Seller shall be responsible for

(10060024,1) 34701,0074

Page 7 .of 25

10

real estate taxes and assessments on the Property payable in respect to periods before the
Current Tax Year. Upon the Closing Date and subject to the adjustment provided for above, Buyer
shall be responsible for real estate taxes and assessments on the Property payable in respect to
the Current Tax Year and all periods after the Current Tax Year,

(b) All rentals and other tenant charges and reimbursements received in respect or allocable
to the month in which the Closing Date occurs (the “Current Month”). Buyer and Seller acknowledge
that rent from certain governmental tenants of the Property (collectively, the “Arrears Tenants”)
is paid in arrears. Such rentals and other tenant charges and “Additional Rents” (as defined below)
for Tenant Leases, other than with respect to the Arrears Tenants, for the Current Month which have
been received as of the Closing Date shall be prorated on a per diem basis based upon the
number of days in the Current Month prior to the Closing Date (which shall be allocated to Seller)
and the number of days in the Current Month on and after the Closing Date (which shall be allocated
to Buyer). For Tenant Leases with the Arrears Tenants, all rent, other tenant charges and
Additional Rent shall be prorated on a per diem basis based upon the number of days in the Current
Month such that an amount equal to all rent due from an Arrears Tenant as the Closing Date shall be
paid by Buyer to Seller in addition to the Purchase Price, and all amounts due from and after the
Closing Date shall be allocated to Buyer, All rentals and other tenant charges and Additional Rents
received by Buyer from a tenant after the Closing Date shall be applied first to collection costs
and then to the most recently accrued obligation of such tenant, For other than Arrears Tenants,
after application as set forth above, Buyer shall promptly remit to Seller that portion of rentals
and other tenant charges and Additional Rents received after the Closing Date attributable to
periods prior to the Current Month; and if attributable to the Current Month, Seller’s share
thereof in. accordance with the proration set forth above, For a period of ninety (90) days after
the Closing Date, Buyer shall use its commercially reasonable efforts to collect all rents which
are delinquent as of the Closing Date with no obligation to commerce litigation to collect such
rents. Neither Seller nor any assignee or other affiliated party of Seller shall institute an
action against any tenant for delinquent rentals and other tenant charges and Additional Rents
attributable to periods before the Current Month prior to the later of ninety (90) days after the
Closing Date and five (5) business days after it gives Buyer written notice of such demand or
action (and in no event shall Seller be entitled to take any action against a tenant which would
result in a termination of any Tenant Lease or the tenant’s right of occupancy thereunder). Tenants
of the Property may be obligated to pay, as additional rent, certain percentage rent, escalations
in base rent and pass-throughs of operating and similar expenses pursuant to the terms of the
Tenant Leases (collectively, “Additional Rents”), As to any Additional Rents that are based on
estimates and that are subject to adjustment or reconciliation pursuant to the Tenant Leases after
the Closing Date, Seller and Buyer shall “reprorate” such Additional Rents (including any portions
thereof that may be required to be refunded to tenants) at the time that such estimates are
actually adjusted or reconciled pursuant to the terms of such Tenant Leases, Any amounts that may
be due Seller as a result of such re prorations shall be paid by Buyer to Seller promptly after
Buyer collects such amounts from the tenants, and any amounts that may be due the tenants from
Seller as a result of such reprorations shall be paid by Seller to Buyer promptly after written
request therefor is delivered to Seller by Buyer. Notwithstanding anything to the contrary herein,
Additional Rents representing tenant reimbursements for real estate taxes and assessments shall be
prorated as follows; Seller shall be entitled to all such reimbursements payable prior to the
Closing Date, and Buyer shall be entitled to all such reimbursements payable on or after the

X10060024,1). 34701,0079

Page 8 of 25

11

Closing Date; provided that (1) if such reimbursements are payable on a monthly, quarterly
or annual basis, then the reimbursement payable in the month, quarter or year, respectively, in
which the Closing Date occurs shall be prorated based upon the number of days in such month,
quarter or year that are prior to the Closing Date (as to Seller) and the number of days in such
month, quarter or year that are on or after the Closing Date (as to Buyer), and (2) any adjustment
(with respect to such a reimbursement) payable after the Closing Date shall be allocated in the
same manner as the reimbursement itself.?

(e) All operating expenses (including all charges under Service

Contracts and agreements assumed by Buyer under the Bill of Sale, Assignment and Assumption),
As to each service provider, operating expenses payable or paid to such service provider in respect
to the billing period of such service provider in which the Closing Date occurs (the `Current
Billing Period”), shall be prorated on a per diem basis based upon the number of days in the
Current Billing Period prior to the Closing Date (which shall be allocated to Seller) and the
number of days in the Current Billing Period on and after the Closing Date (which shall be
allocated to Buyer), and assuming that all charges are incurred uniformly during the Current
Billing Period. Any amounts which have been prepaid to Seller by a service provider or other
contract party shall be prorated between Buyer and Seller. Seller shall provide Buyer with a credit
for the amount of such prepayment which is attributable to the term of such Service Contract which
has not expired, If actual bills for the Current Billing Period are unavailable as of the Closing
Date, then such proration shall be made on an estimated basis based upon the most recently issued
bills, subject to readjustment upon receipt of actual bills,

6.4.2. Security Deposits; Prepaid Rents; Tenant Inducements. Prepaid

rentals and other tenant charges and Additional Rents for periods after the Current Month, and
any security deposits (including any portion thereof which may be designated as prepaid rent)
received by Seller under Tenant Leases shall be credited against the Purchase Price, In
addition, in the event that as of the Closing Date there shall exist any rebate, rental
concession, credit, setoff or rent reduction under or with respect to any Tenant Lease which is a
liquidated amount and due and owing as of the Closing Date (collectively, Tenant Concessions “),
then the prorations in favor of Buyer hereunder shall include an amount equal to the aggregate
amount of such Tenant Concessions, and all Tenant Concessions due and owing on or after the Closing
Date shall be the responsibility of Buyer,

6.4.3. Leasing Costs. Unpaid “Leasing Costs” (as defined below), which are due as
of the Closing Date for any Tenant Lease or amendment, cancellation, extension or renewal of
any Tenant Lease in effect as of the Closing Date shall be credited against the Purchase
Price, The term “Leasing Costs” shall mean only the following;

(a) brokerage commissions and fees due and payable as of the Closing Date with respect to any
Tenant Lease, including any brokerage commissions and fees due and unpaid as of the Closing Date
for any renewal ,tension or expansion of or under any Tenant Lease (with the foregoing unpaid
Leasing Costs expressly excluding any brokerage commission or fee based on any

renewal, extension or expansion exercised after the Closing Date, whether or not the tenant had
the right to exercise any such right before the Closing Date), (b) the amount of any tenant
improvement allowance that was to have been paid under any Tenant Lease as of the Closing Date
but was not paid as of the Closing Date, (c) legal fees of Seller’s counsel for services in
connection with the preparation of documents and other services rendered before Close of

{10060024,1) 34701,0079

Page 9 of 25

12

Escrow in connection with the effectuation of a Tenant Lease, and (d) expenses incurred for
the purpose of satisfying or terminating the obligations of a tenant under any Tenant Lease to the
landlord under another lease (whether or not such other lease covers space in the Property [i.e.,
lease takeover obligations]) pursuant to a separate agreement between such tenant and a Seller
where such payment was due and unpaid as of the Closing Date, Notwithstanding the foregoing, Buyer
shall assume all costs, expenses and liabilities in connection with the Sheriff’s Lease (as
defined in the Access Agreement).

6.4.4. Calculation, The prorations and payments shall be made on the

basis of a written statement approved by Buyer and Seller. Subject to the remaining provisions
of this Section 6.4.4, in the event any prorations or apportionments made under this Section6.4,4
shall prove to be incorrect for any reason, then any party shall be entitled to an adjustment to
correct the same. Any item which cannot be finally prorated because of the unavailability of
information as of the Closing Date shall be tentatively prorated on the basis of the best data then
available and re-prorated when the information is available, as more particularly set forth below.
Subject. to the following provisions regarding audits of Additional Rent under Tenant Leases, any
re proration shall be made, if at all, within ninety (90) days after the Closing Date
(except with respect to taxes and assessments and Additional Rents, in which case such re-proration
shall be made within thirty (30) days after the information necessary to perform such re-proration
is available, but in no event after March 31, 2007). With regard to any audits of Additional Rents
pursuant to Tenant Leases occurring after March3l, 2007, Buyer shall be exclusively responsible for
the reimbursements determined under such audits regardless of whether the amounts determined owing
accrued before or after Close of Escrow. With regard to any audits of Additional Rents pursuant to
Tenant Leases occurring on or before March3l, 2007, (i) Seller shall be exclusively responsible for
the reimbursements for pre-closing amounts determined owing pursuant to such audits, provided
Seller receives reasonable prior written notice of such audits, Buyer provides Seller access to
all documentation in Buyer’s but not Seller’s possession necessary to defend any such
audit, and Seller has the opportunity to fully participate with Buyer in such audit, and (ii) Buyer
shall be exclusively responsible for the reimbursements for post-closing amounts determined
pursuant to such audits.

6,4.5, Items Not Prorated. Seller and Buyer agree that (a) none of the

insurance policies relating to the Property will be assigned to Buyer (and Seller shall pay
any cancellation fees resulting from the termination of such policies) and Buyer shall responsible
for arranging for its own insurance as of the Closing Date; (b) utilities, including telephone,
electricity, water and gas, shall be read on the Closing Date to the extent reasonably feasible;
(c) as a condition to Buyer’s obligation to proceed to Close of Escrow, the Property will
not be subject to any Existing Liens; and (d) Buyer shall assume no employment agreements or
arrangements, or any obligations with respect thereto, with any of Seller’s employees or other
employees of Seller or Seller’s affiliates performing services at the Property. Accordingly, there
will be no prorations fdrinsurance, utilities, debt service or payroll,. Notwithstanding the
foregoing, in the event a meter reading is unavailable for any particular utility, such utility
shall be prorated in the manner provided in subsection 6.4,1(c), above.

7, DESTRUCTION/CONDEMNATION OF PROPERTY. In the event that all or any portion of
the Land or Improvements is damaged or destroyed by any casualty or is the subject of a taking
or condemnation under the provisions of eminent domain law after the

{10060029,1} 34701.0079

Page 10 of 25

13

Effective Date but prior to the Closing Date, Seller shall have no obligation to repair or
replace any damage or destruction caused by the foregoing, but the following shall apply at the
Closing: (1) in the event of a casualty, Buyer shall receive a credit against the Purchase Price at
Closing for the reasonably estimated remaining cost to restore the Property to its condition
immediately prior to such casualty; and (2) in the event of a taking, Seller shall assign to Buyer
its rights to any condemnation proceeds resulting from such taking. Notwithstanding the foregoing,
if such casualty or taking is a Material Event, then Buyer, at its option, may terminate this
Agreement by written notice to Seller on or before the Closing Date, and upon such termination, the
License Fee and Deposit shall be returned to Buyer, and the parties shall have no further liability
or obligation hereunder. As used in this Section, a “Material Event” means any of the following:
(a) a casualty resulting in damage or destruction to the Property if the cost to restore the
Property to its condition immediately prior to such casualty is reasonably estimated to exceed Two
Hundred Fifty Thousand and No/100 Dollars ($250,000.00) or if such casualty, regardless of the
estimated cost of repair, results in the United States Government terminating its lease dated May
12, 2003 (the “FBI Lease’); or (b) a taking or condemnation which would impede access to the
Property, reduce available parking below that required by Laws or any Business Agreement, result in
the termination of the FBI Lease, or result in a condemnation award reasonably estimated to exceed
Two Hundred Fifty Thousand and No/100 Dollars ($250,000.00),

8, REPRESENTATIONS AND WARRANTIES; CERTAIN COVENANTS.

8.1. Representations and Warranties of Seller. Seller hereby represents and
warrants the following to Buyer:

8.1.1. Formation; Authority. Seller is a partnership, corporation or limited liability
company, duly organized, validly existing and in good standing under the laws of the State of its
formation and duly authorized and qualified to do all things required of it under this Agreement.
Seller has all requisite power and authority to execute and deliver, and to perform all of its
obligations under, this Agreement and nothing prohibits or restricts the right or ability of Seller
to close the transactions contemplated hereunder and carry out the terms hereof,

8.1.2. Due Execution; Enforceability, This Agreement and all agreements,
instruments and documents herein provided to be executed or to be caused to be executed by
Seller are duly authorized, executed and delivered by and are binding upon Seller.

8.1.3. Consents; No Conflict. Seller has obtained all consents and permissions related
to the transactions herein contemplated and required under any covenant, agreement, encumbrance, or
Laws. Neither this Agreement nor any agreement, document or instrument executed or to be executed
in connection with the same, nor anything provided in or contemplated by this Agreement or any such
other agreement, document or instrument, does now or shall hereafter breach invalidate, cancel,
make inoperative or interfere with, or result in the acceleration or maturity of, any agreement,
document, instrument, right or interest, affecting or relating to Seller or the Property.

8.1.4. No Bankruptcy or Dissolution No “Bankruptcy/Dissolution Event” (as defined
below) has occurred with respect to (a) Seller; or (b) any general partner or managing member of
Seller (if Seller is a partnership or limited liability company, respectively).

(10060024,1} 34701,0079

Page 11 of 25

14

8.1.5. Improvements. Except as disclosed in Exhibit “K.”, to the best

of Seller’s knowledge, Seller has received no written notice from. any governmental or quasi- .

governmental entity that any of the followings statements are untrue: (a) the Improvements have
been constructed in substantial accordance with all “Laws”, Permits” and `Business Agreements”
(each as defined in Section 12.8.13, below); (b) all Permits have been obtained, are in full force
and effect and are free from violation; and (c) the Property and the operation and use thereof
complies with applicable Laws,

8.1.6, Default, Except as disclosed in Exhibit “K”, Seller has received no
written notice of any default from any existing tenants of any Property in respect of any of its
obligations or liabilities pertaining to the Property,

8,1.7. Due Diligence Package. To the best of Seller’s knowledge, the documents
contained in the Due Diligence Package are all the documents in the possession of Seller, other
than the Excluded Documents (as defined in the Access Agreement), containing information material
to the ownership and operation of the Properties,

8.1.8. Tenant Leases. To the best of Seller’s knowledge, Exhibit “L” contains
full, true and correct rent rolls and lease summaries (the “Rent Rolls “) for the Property as of
the date hereof, which sets forth all leases, assignments, subleases, amendments, modifications,
agreements or understandings (whether written or oral) with any and all tenants, concessionaires
or licensees of the Property. As used herein, ‘Tenant Leases” means the leases and other documents
or agreements described in the Rent Rolls and such additional leases of the Property made with the
consent of Buyer. To the best. of Seller’s knowledge, except as disclosed in Exhibit “K”
or in any estoppel certificate delivered to Buyer pursuant to this Agreement or otherwise, each
Tenant Lease is in full force and effect. Seller has delivered to Buyer complete copies of all
Tenant Leases to the extent in Seller’s possession.

8.1.9. Litigation; Condemnation Except as disclosed in Exhibit “K”, to the
best of Seller’s knowledge, there are no actions, suits or proceedings pending or threatened,
before or by any judicial, administrative or union body, any arbiter or any governmental
authority, against or affecting Seller or the Property (or any portion thereof). Except as
disclosed In Exhibit “K”; to the best knowledge of Seller, there is no existing, proposed
or contemplated eminent domain or similar proceeding which would affect the Land or Improvements
in any way whatsoever.

8.1.10. Environmental Conditions, Except as disclosed in Exhibit “K’, to the
best of Seller’s knowledge, Seller has received no written notice that it or the Property is in
violation of any Law governing the use, manufacture or disposal of `Hazardous Materials” (as
defined below), which has not been cured. To the best of Seller’s knowledge, except as disclosed
in Exhibit “K’°,or in the environmental reports delivered to Buyer as part of the Due
Diligence Package, there are no Hazardous Materials installed or stored in or
otherwise‘ existing at, on, in or under the Property in violation of applicable Laws.

8.1,11. Notices; Requests, Except as disclosed in Exhibit “K”, to the best
of Seller’s knowledge, Seller has not received any written notice that any government agency or
any employee or official thereof considers the construction of the Property or the

(10060024.1} 34701,0079

Page 12 of 25

15

operation or use of the same to have failed to comply with any Law, or that any
investigation has been commenced or is contemplated respecting any such possible failure of
compliance.

8.1,12. Existing Agreements. All material service and equipment leasing contracts
(the “Service Contracts”) with respect to or affecting the Property are listed

and described in Exhibit “M”.

“To the best of Seller’s knowledge”, “to the best knowledge of Seller"

or similar language shall mean the actual, current knowledge of Michael F. Harrah without
undertaking or the duty to undertake any independent investigation or inquiry, In the event any
representation or warranties of Seller are not true as of Close of Escrow or in the event Seller
has not performed any obligation on Seller’s part to be performed under this Agreement as of Close
of Escrow (each, a “Seller Breach”), and Buyer nevertheless elects to close Escrow with the
knowledge of any such Seller Breach, any rights or claims of Buyer against. Seller arising from or
in connection with such Seller Breach shall be forever deemed waived. Further, Buyer shall have no
right to bring any claim or cause of action based on any Seller Breach that is unknown to Buyer at
Close of Escrow and of which Buyer later becomes aware if a claim or cause of action thereon is not
duly filed and served within six (6) months following Close of Escrow. In connection with the
foregoing, Buyer hereby waives any and all rights and benefits which it now has, or in the future
may have, conferred upon Buyer by virtue of the provisions of Section1542 of the California Civil
Code, which provides:

“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICI-I THE
CREDITOR. DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE
TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE
MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR.”

8.2. Representations and Warranties of Buyer. Buyer hereby represents
and warrants the following to Seller:

8,2.1. Formation; Authority. Buyer is a limited liability company, duly organized,
validly existing and in good standing under the laws of the State of Virginia and duly authorized
and qualified to do all things required of it under this Agreement, Buyer has all requisite
limited liability company power and authority to execute and deliver, and to perform all of its
obligations under, this Agreement and nothing prohibits or restricts the right or ability of Buyer
to close the transactions contemplated hereunder and carry out the terms hereof.

8.2.2. Due Execution:, Enforceability, This Agreement and all agreements,
instruments and documents herein provided to be executed or to be caused, to be
executed by Buyer are duly authorized, executed and delivered by and are binding upon Buyer,

8.2.3, Consents; No Conflict. Buyer has obtained all consents and permissions
related to the transactions herein contemplated and required under any covenant, agreement,
encumbrance, or Laws, Neither this Agreement nor any agreement, document or instrument executed
or to be executed in connection with the same, nor anything provided in or

(10060024.1} 34701.0079

Page 13 of 25

16

contemplated by this Agreement or any such other agreement, document or instrument, does now
or shall hereafter breach, invalidate, cancel, make inoperative or interfere with, or result in the
acceleration or maturity of, any agreement, document, instrument, right or interest, affecting or
relating to buyer.

8.2.4. No Bankruptcy/Dissolution Event, No Bankruptcy/Dissolution Event has occurred
with respect to Buyer or any managing member of Buyer.

8.3. Certain Interim Covenants of Seller. Until the Closing Date or the sooner
termination of this Agreement:

8.3.1, Seller shall maintain, the Property in substantially the. same manner
as prior hereto pursuant to its normal course of business,

8.3,2. During Escrow, Seller shall not enter into any new Tenant Leases
nor shall Seller amend or modify any existing Tenant Leases without obtaining the prior written
consent of Buyer, which consent shall not be unreasonably withheld, conditioned or delayed and
which shall he deemed given if not withheld within three (3) business days following delivery of
the written request therefor, Additionally, during Escrow, Seller shall (i) deliver to Buyer any
newly received correspondence from existing tenants and any newly received notices or other newly
received documentation that would be material to Buyer’s decision whether or not to purchase the
Property, and (it) continue to use its commercially reasonable diligent efforts to procure any
Estoppel Certificates to the extent not procured as of the expiration of the Inspection
Period (as those terms are defined in the Access Agreement), Further, during Escrow, Seller shall
not enter into any Business Agreement, other than a Business Agreement that is terminable on or
prior to the Closing Date without substantial fee or penalty. Seller, at its sole cost and
expense, shall terminate as of the Closing Date all service contracts.

83.3. Seller shall maintain its existing insurance policies for the Property through
the Closing Date,

9, INDEMNIFICATION OBLIGATIONS,, If the-Closing occurs,
then the parties shall have the following respective indemnification obligations:

9.1. Indemnification by Seller. Seller shall protect, defend, indemnify and hold
Buyer and the Property harmless from and against: (a) any Claim arising before the
Closing Date under any Tenant Lease, Service Contract, or other Business Agreement, which Claim is
based solely on facts inconsistent with the representations or warranties given under Section 8.1,
above; (b) any third party Claim based on a risk insured by Seller before Closing and which is
based on facts or circumstances occurring during Seller’s ownership of the Property; and (c) any
Claim that results solely from any breach or default by Seller under this Agreement, The foregoing
indemnification obligations shall be subject to the provisions of Section 8.1.

9.2. Indemnification by Buyer. Buyer shall protect, defend, indemnify and hold
Seller harmless from and against: (a) any Claim in any way related to the Property and first
arising or accruing on or after the Closing Date, including any Claim first arising or accruing
on or after the Closing Date under any Tenant Lease, Permitted Exception or Service Contract

(10060024.1) 34701.0079

Page 14 of 25

17

assumed by Buyer under the Bill of Sale, Assignment and Assumption , and otherwise arising
from or in connection with Buyer’s ownership or operation of the Properties following Close of
Escrow (except to the extent such Claim results solely on facts inconsistent with the
representations and warranties of Seller set forth in Section8,1, above); and (b) any Claim that
results from any breach or default by Buyer under this Agreement.

9.3. Generally. The indemnification obligations under this Agreement shall be subject
to the following provisions:

9,3,1. The party seeking indemnification (“Indemnitee’) shall notify the other party
(“Indemnitor”) of any Claim against Indemnitee within fifteen(15) days after it has notice of such
Claim, but failure, to notify Indemnitor shall.. in no case prejudice the rights of Indemnitee
under this Agreement unless Indemnitor shall be prejudiced by such failure and then only to the
extent of such prejudice. Should Indemnitor fail to discharge or undertake to defend Indemnitee
against such liability (with counsel approved by Indemnitee), within ten(10) days

after Indemnitee gives Indemnitor written notice of the same, then Indemnitee may settle such
Claim, and Indemnitor’s liability to Indemnitee shall be conclusively established by such
settlement, the amount of such liability to include both the settlement consideration and the
reasonable costs and. expenses, including attorneys’ fees, incurred by Indemnitee in effecting such
settlement. Indemnitee shall have the right to employ its own counsel in any such ease, but the
fees and expenses of such counsel shall be at the expense of Indemnitee unless: (a) the employment
of such counsel shall have been authorized in writing by Indemnitor in connection with the defense
of such action, (b) Indemnitor shall not have employed counsel to direct the defense of such
action, or (c) Indemnitee shall have reasonably concluded that there may be defenses available to
it which are different from or additional to those available to Indemnitor (in which case
Indemnitor shall not have the right to direct the defense of such action or of Indemnitee), in any
of which events such fees and expenses shall be borne by Indemnitor.

9.3.2. The indemnification obligations and liabilities under this Agreement shall be
limited by the provisions of Section 12.2, below.

9.3.3. The Seller’s indemnification obligations shall survive for a period of twelve (12)
months following Close of Escrow. To the extent any Claim by Buyer is not made within such
twelve (12)-month period pursuant to subsection9.3, above, such Claim shall be deemed waived.

10. CONDITIONS TO CLOSING,

10.1. Seller’s Conditions to Closing. Seller’s obligations to proceed to the
Close of Escrow and sell the Property are conditioned on the following:

-4’0,1.1, Performance by Buyer, The due performance by Buyer of each and every
undertaking and agreement to be performed by it hereunder in all material respects (including the
delivery to Seller of the items specified to be delivered by Buyer in Section 6.1.2, above) and
the truth of each representation and warranty made by Buyer in this Agreement in all material
respects at the time as of which the same is made and as of the Closing Date as if made on and as
of the Closing Date to the extent set forth in Seller’s Closing Certificate.

(10060024,1) 34701,0079

Page 15 of 25

18

10.1.2. No Bankruptcy or Dissolution. That at no time on or before the Closing
Date shall any Bankruptcy/Dissolution Event have occurred with respect to Buyer, and if Buyer is a
partnership, any general partners of Buyer.

10,2, Buyer’s Conditions to Closing. Buyer’s obligations to proceed to the Close
of Escrow and purchase the Property are conditioned on the following:

10.2.1, Performance by Seller. The due performance by Seller of each and every
undertaking and agreement to be performed by it hereunder in all material respects (including the
delivery to Buyer of the items specified to be delivered by Seller in Section 6.1.1, above), and
the truth of each representation and warranty made by Seller in this Agreement in all material
respects at the time as of which the same is made and as. of the Closing Date as if made on and as
of the Closing Date, Without limitation on the foregoing, as a condition to closing, there shall
be no defaults or exceptions noted in the Closing Certificate.

10,2.2.. No Bankruptcy or Dissolution That at no time on or before the Closing Date
shall a Bankruptcy/Dissolution Event have occurred with respect to Seller or any of the general
partners of Seller.

10.2.3. Buyer shall have received Estoppel Certificates from the United

States Government, Qualify America, Inc. and One Nationwide Mutual Insurance Co., and any
other tenant leasing more than four thousand (4,000) square feet of space as of Close of Escrow
(each, a “Major Tenant”).

10.2.4. As of the Close of Escrow, no Major Tenant shall be in bankruptcy.

11. ENVIRONMENTAL AGREEM ENT.

11.1. Except as expressly set forth in Section8.1,10, above, Seller makes no representations
or warranties, expressed or implied, with respect to the environmental condition of the Property
or the surrounding property (including without limitation all facilities, improvements, structures
and equipment thereon and soil and groundwater thereunder), compliance with any federal, state or
local environmental, health or safety statutes, laws or regulations. Except as expressly set forth
in Section9, above, Seller makes no indemnifications, expressed or implied, for any costs, claims
or liabilities arising out of or related to the presence, discharge, treatment, recycling,
storage, use, transportation, generation, disposal, migration or release on, in, under, from or
about the Property (including without limitation all facilities, improvements, structures and
equipment thereon and soil and groundwater thereunder) of any Hazardous Material,

11.2. ,>bject only to Seller’s express representations set forth in
Sectipn8.1, above, and Seller’s indemnification obligations set forth in Section9, above, Buyer
hereby waives, releases and discharges the Seller and each constituent shareholder, officer,
director, partner or member of Seller, and their respective successors (collectively, the
“Indemnified Parties”) and assigns from any and all environmental suits, causes of action, legal
or administrative proceedings, liabilities, claims, damages, losses, costs and expenses of
whatever kind, known or unknown, including any action under Comprehensive Environmental
Response,

(10060024,1) 34701,0019

Page 16 of 25

19

Compensation, and Liability Act of 1980, 42 U.S.C. 9601 et seq., as amended (“CERCLA”) and
the provisions of California Health & Safety Code Section25100 et seq., as amended, which Buyer
had, has or may have, based upon the presence, discharge, treatment, recycling, use, migration,
storage, generation, release, disposal or transportation to or from the Property of any Hazardous
Material or the environmental condition of the Property (including, without limitation, all
facilities, improvements, structures and equipment thereon and soil and groundwater thereunder).
Buyer hereby agrees, represents and warrants that the matters released herein are not limited to
matters which are known, disclosed or foreseeable, and Buyer hereby waives any and all rights and
benefits which it now has, or in the future may have, conferred upon Buyer by virtue of the
provisions of Section 1542 of the California Civil Code, which provides:

“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR
DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF
EXECUTING THE RELEASE, WHICII IF KNOWN BY IIIM MUST HAVE
MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR,”

Buyer warrants that it is familiar with, has read, understands, and has consulted legal
counsel of its choosing with respect to California Civil Code Section 1542 and Buyer realizes and
acknowledges that factual matters now unknown to it may have given, or may hereinafter give, rise
to actions, legal or administrative proceedings, claims, demands, debts, controversies, damages,
costs, losses,, liabilities and expenses which are presently unknown, unanticipated and
unsuspected and Buyer further agrees, represents and warrants that the provisions of this Section
11 have been negotiated and agreed upon in light of that realization and that, subject to
Sections 8 and 9, above, Buyer nevertheless hereby intends to release, discharge and acquit the
Indemnified Parties from any such unknown causes of action, legal or administrative proceedings,
claims, demands, debts, controversies, damages, costs, losses, Iiabilities and expenses which are
in any way related to this Agreement or the Property.

Buyer’s obligations under this Section 11 shall survive the Close of Escrow, 12.
MISCELLANEOUS.

12.1. Brokerage Issues. Seller has been represented by Volt Commercial Brokerage
(“Veit”), and Buyer has been represented by Grubb & Ellis and Triple Net Properties Realty, Inc.
in connection with this transaction. Seller shall pay Voit a commission for this transaction
based on a separate agreement between Veit and Seller, and, upon Close of Escrow only, Seller
shall pay Triple Net Properties Realty, Inc. a separate commission in the amount of Three Hundred
Thousand and No/10p Dollars ($300,000.00). The term `Brokers” as }used in this
Agreement shall collectively mean Volt, Grubb & Ellis, and Triple Net Properties Realty, Inc.
Voit has represented to Seller that it shall pay a portion of Seller’s commission payment to
Grubb & Ellis pursuant to a separate agreement between Voit and Grubb & Ellis, Seller
shall have no obligation to pay any sums separately to Grubb & Ellis, Seller represents and
warrants to Buyer that, other than Volt, no broker or finder has been engaged by it in connection
with the transaction contemplated by this Agreement, and Seller shall indemnify,

{10060024,1} 34701,0079

Page 17 of 25

20

protect, defend and hold Buyer harmless from and against any Claims for a broker’s
commission or finder’s fee, other than with respect to Grubb & Ellis and Triple Net Realty, Inc.,
to the extent based upon any statement or agreement alleged to have been made by Seller. Buyer
represents and warrants to Seller that, other than Grubb & Ellis and Triple Net Realty, Inc., no
broker or finder has been engaged by it in connection with the transaction contemplated by this
Agreement, and Buyer shall indemnify, protect, defend and hold Seller harmless from and against any
Claims for a broker’s commission or finder’s fee, other than with respect to Voit, to the extent
based upon any statement or agreement alleged to have been made by Buyer, Under no circumstances
shall any of the Brokers or any other broker or finder be a third party beneficiary under this
Agreement, the Escrow or the Access Agreement.

12.2. Limitation of Liability. No present or future partner, tt member, director,
officer, shareholder, employee, advisor, affiliate or agent of or in Buyer or Seller or any
affiliate of Buyer or Seller (including Michael F. Harrah and Caribou Industries, Inc..)
shall have any personal liability, directly or indirectly, under or in connection with this
Agreement, the Access Agreement, or any agreement made or entered into under or in connection with
the provisions of this Agreement or the Access Agreement, or any amendment or. amendments to any of
the foregoing made at any time or times, heretofore or hereafter, and Seller, Buyer, and their
respective successors and assigns and, without limitation, all other persons and entities, shall
look solely to the Buyer’s or Seller’s, as applicable, assets for the payment of any Claim or for
any performance, and Seller and Buyer hereby waive any and all such personal liability. For
purposes of this subsection 12.2, no negative capital account or any contribution or payment
obligation of any partner or member in Buyer or Seller shall constitute an asset of Buyer or
Seller, as applicable, In addition, neither Buyer, Seller, nor any of their respective successors
or assigns intend to assume any personal liability, directly or indirectly, under or in.
connection with any Business Agreement to which the Property is now or hereafter subject, and no
such assumption shall be implied. The limitations of liability contained in this Section are in
addition to, and not in limitation of, any limitation on liability applicable to Buyer and Seller
provided elsewhere in this Agreement or by law or by any other contract, agreement or instrument.

12.3. Successors and Assigns. Except as contemplated pursuant to Section 12,8,12,
below, Seller may not assign or transfer its rights or obligations under this Agreement without
the prior written consent of Buyer (in which event such transferee shall assume in writing all of
the transferor’s obligations hereunder, but such transferor shall not be released from its
obligations hereunder), No consent given by Buyer to any transfer or assignment of Seller’s rights
or obligations hereunder shall be construed as a consent to any other transfer or
assignment of Seller’s rights or obligations hereunder. Buyer may not assign or transfer its
rights or obligations under this Agreement prior to the Closing Date without the prior written
consent of Seller (which Seller agrees not to unreasonably withhold), However, Buyer shall have
the right to assign this Agreement and the Escrow to an entity controlled by Buyer or its
principals (a “Buyer Affliate”) without obtaining the prior written consent of Seller,
provided, however, (i) no such assignment shall be effective unless Buyer provides Seller with
written notice of such intended assignment to a Buyer Affiliate no later than three (3) business
days prior to the scheduled Closing Date, and (ii) Buyer concurrently provides reasonable
supporting documentation that such intended assignee qualifies as a Buyer Affiliate pursuant to
this Section. Additionally, no later than three (3) business days before the scheduled Closing
Date, Buyer shall have the right to designate up to thirty-five (35) designees to take
title to the

{10060024.1} 34701,0079

Page 18 of 25

21

Property as grantees, assignees and transferees subject to
all terms and conditions of this Agreement and the respective
conveyancing documents, No assignment or vestee designation by
Buyer, whether or not to a Buyer Affiliate, shall relieve Buyer of
its obligations under this Agreement or the Access Agreement, No
transfer or assignment in violation of the provisions hereof shall
be valid or enforceable. Subject to the foregoing, this Agreement
and the terms and provisions hereof shall inure to the benefit of
and be binding upon the successors and assigns of the parties. Upon
any such assignment or vestee designation by Buyer or any successor,
assign, or designee of Buyer, the assignor’s liabilities and
obligations hereunder or under any instruments, documents or
agreements made pursuant hereto shall be binding upon any assignee
or designee; provided, however, that such assignee or designee shall
have the benefit of any limitations of such liabilities and
obligations applicable to either the assignor, assignee, or designee
provided by law or by the terms hereof or such instruments,
documents or agreements,To Buyer:

With Copy To:

To Seller:

12.4. Notices. Any notice which a party is required or may-desire to give the other shall be
in writing and shall be sent only by personal delivery, by mail (either [i] by United States
registered or certified mail, return receipt requested, postage prepaid, or [ii] by Federal
Express or similar generally recognized overnight carrier regularly providing proof of delivery),
or by facsimile, provided that in the event of a facsimile notice, a hard copy of such notice is
provided by mail as set forth above, in any event addressed as follows (subject to the right of a
party to designate a different address for itself by notice similarly given at least five (5) days
in advance):

Triple Net Properties, LLC

4 Hutton Center Drive, Suite 700 South Coast Metro, California 92707

Attention: Mr. Brendan Considine

Office (Gen,): (714) 667-8252 Facsimile: (714) 667-0611

Hirschler Fleischer

701 East Byrd Street

Richmond, Virginia

Attention: Joseph J. McQuade, Esq. Office (Gen.): (804) 771-9502 Facsimile:
(804) 644-0957

Santa Ana Arts IV, inc.

12.00 N. Main Street, Suite 900 Santa Ana, California 92701 Attention: Mr. Michael
F. Harrah

Office (Gen.): (714) 543-9484
Telecopier: (714) 543-9972

{10060024.1) 34701,0079

Page 19 of 25

22

Garrett DeFrenza Stiepel LLPWith Copy To:

To Escrow Holder:

695 Town Center Drive, Suite 500 Costa Mesa, California 92626 Attention: Henry R.
Stiepel, Esq. Office (Gen): (714) 384-4300 Telecopier: (714) 384-4320

North American Title Company 505
S. Main Street, Suite 101
Orange, California 92868

Attention: Ms. Christine English
Office: (714) 550-6546

Facsimile: (714) 550-6411

Any notice shall be deemed effective upon delivery (whether accepted or refused). All
notices that are required or permitted to be given by either party to the other under this
Agreement may be given by such party or its legal counsel, who are hereby authorized to do so on
the party’s behalf.

12.5. Legal Costs, In the event any action be instituted by a party to enforce this
Agreement, the prevailing party in such action (as determined by the court, agency or other
authority before which such suit or proceeding is commenced), shall be entitled to such reasonable
attorneys’ fees, costs and expenses as may be fixed by the decision maker. The foregoing includes,
but is not limited to, reasonable attorneys’ fees, expenses and costs of investigation incurred in
(1) appellate proceedings; (2) in any post judgment proceedings to collect or enforce the judgment;
(3) establishing the right to indemnification; and (4) any action or participation in, or in
connection with, any case or proceeding under Chapter 7, 11 or 13 of the Bankruptcy Code (11 United
States Code Section 101 et seq.), or any successor statutes.

12.6, Further Instruments. Each party will, whenever and as often as it shall be
requested so to do by the other, cause to be executed, acknowledged or delivered any and all such
further instruments and documents as may be necessary of proper, in the reasonable opinion of the
requesting party, in order to carry out the intent and purpose of this Agreement.

12.7. Natural Hazard Disclosure Requirement Compliance. Buyer acknowledges
having received the Commercial Natural Hazard Disclosure Report for the Property, dated
March 6, 2006, prepared by JCP (Order No. 20060306000056),

12,8, Matters of Construction

12.8.1. Incorporation of Exhibits. All exhibits attached and referred to in this
Agreement are hereby incorporated herein as fully set forth in (and shall be deemed to be a part
of) this Agreement.

12.8.2, Entire Agreement, This Agreement, together with the Access Agreement and
the Escrow Agreement, contains the entire agreement between the parties

(10060024,1) 34701,0079

Page 20 of 25

23

respecting the matters herein set forth and supersedes all prior agreements between the
parties hereto respecting such matters except the Access Agreement and the Escrow Agreement.

12.8.3. Time of the Essence, Subject to subsection 12.8.4, below, time is of the
essence of this Agreement,

12.8.4. Non Business Days. Whenever action must be taken (including the giving of
notice or the delivery of documents) under this Agreement during a certain period of time (or by a
particular date) that ends (or occurs) on a iron business day, then such period (or date) shall be
extended until the immediately following business day. As used herein, “business day” means any
day other than a Saturday, Sunday or federal or California holiday.

12.8.5, Severability, If any term or provision of this Agreement or the application
thereof to any person or circumstance shall, to any extent, be invalid or unenforceable, the
remainder of this Agreement, or the application of such term or provision to persons or
circumstances other than those as to which it is held invalid or unenforceable, shall not be
affected thereby, and each such term and provision of this Agreement shall be valid and be
enforced to the fullest extent permitted by law,

12.8.6. Interpretation Words used in the singular shall include the plural, and vice
versa, and any gender shall be deemed to include the other, Whenever the words “including,”
“include” or “includes” are used in this Agreement, they should be interpreted in a non-exclusive
manner. The captions and headings of the Sections of this Agreement are for convenience of
reference only, and shall not be deemed to define or limit the provisions hereof. Except as
otherwise indicated, all Exhibit and Section references in this Agreement shall be deemed to refer
to the Exhibits and Sections in this Agreement, Each party acknowledges and agrees that this
Agreement (a) has been reviewed by it and its counsel; (b) is the product of negotiations between
the parties, and (c) shall not be deemed prepared or drafted by any one party. In the event of any
dispute between the parties concerning this Agreement, the parties agree that any ambiguity in the
language of the Agreement is to not to be resolved against Seller or Buyer, but shall be given a
reasonable interpretation in accordance with the plain meaning of the terms of this Agreement and
the intent of the parties as manifested hereby.

12.8,7, No Waiver. Any party may at any time or times, at its election, waive any of
the conditions to its obligations hereunder, but any such waiver shall be effective only if
contained in a writing signed by such party (except that if a party proceeds to Closing,
notwithstanding the failure of a condition to its obligation to close, then such condition shall
be deemed waived by the Closing), No such waiver shall reduce the rights or remedies of a party by
reason of any breach by the other party hereunder, Waiver by one party of the performance of any
covenant, condition or promise of the other party shall not invalidate this Agreement, nor shall
it be deemed to be a waiver by such party of the performance of any other covenant, condition or
promise by such other party (whether preceding or succeeding and whether or not of the same or
similar nature). No failure or delay by one party to exercise any right it may have by reason of
the default of the other party shall operate as a waiver of default or modification of this
Agreement or shall prevent the exercise of any right by such party while the other party continues
to be so in default,

(10060024,1) 34701,0079

Page 21 of 25

24

12.8.8. Consents and Approvals,, Except as otherwise expressly
provided herein, any approval or consent provided to be given by a party hereunder may be
given or withheld in the absolute discretion of such party.

12.8.9. Governing Law, THIS AGREEMENT SHALL BE CONSTRUED AND ENFORCED IN
ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF CALIFORNIA (WITHOUT REGARD TO CONFLICTS OF
LAW).

12.8.10. Third Party Beneficiaries, Seller and Buyer do not intend by any
provision of this Agreement to confer any right, remedy or benefit upon any third party
(express or implied), and no third party (including, without limitation, any brokers) shall be
entitled to enforce or otherwise shall acquire any right, remedy or benefit by reason of any
provision of this Agreement,

12.8,11, Amendments, This Agreement may be amended by written agreement of
amendment executed by all parties, but not otherwise.

12.8.12. 1031 Exchange,, Buyer acknowledges that Seller may effect an
exchange of any or all of the Properties that may qualify for nonrecognition treatment in
accordance with Section 1031 of the Internal Revenue Code, Buyer agrees to cooperate with Seller
in connection with the exchange, provided, however, (a) Buyer shall incur no liability in
connection with an exchange; (b) Buyer shall not be required to take title to any property with
respect to the exchange; (c) Seller shall be solely responsible for any and all costs associated
with the exchange including, without limitation, (i) costs to prepare the necessary agreements,
escrow instructions and other documents relating to the exchange; (ii) escrow costs, broker’s
commissions, title charges, recording costs or other charges relating to the exchange; and

(iii) attorneys’ fees and other costs incurred by Seller and/or Buyer relating to the exchange; and

(d) the Close of Escrow shall not be contingent upon the exchange, and the exchange shall not in
any way delay the Close of Escrow.

12.8.13. Certain} Definitions.. As used in this Agreement,, the following
terms (whether or not initially capitalized herein) shall have the following meanings:

a) "Bankruptcy/Dissolution Event" means the occurrence of any
of the following: (a) the commencement of a case under Title 11 of the U.S. Code, as now
constituted or hereafter amended, or under any other applicable federal or state bankruptcy law or
other similar law; (b) the appointment of a trustee or receiver of any property interest; (e) an
assignment for the benefit of creditors; (d) an attachment, execution or other judicial seizure of
a substantial property interest; (e) the taking of, failure to take, or submission to any action
indicating an inability to meet its financial obligations as they accrue; or (f) a dissolution or
liquidation, death or ineapacity.

b) “Business Agreement” means any equipment lease, rental agreement, loan agreement,
mortgage, easement, covenant, restriction or other agreement or instrument at any time or times
affecting all or a portion of the Property,

c) “Claim” means any obligation, liability, claim (including any claim for damage to property
or injury to or death of any persons), lien or encumbrance, loss,

{10060024,1} 34701,0079

Page 22 of 25

25

damage, cost or expense (including any judgment, award, settlement, reasonable attorneys’
fees and other costs and expenses incurred in connection with the defense of any actual or
threatened action, proceeding or claim [including appellate proceedings], and any collection costs
or enforcement costs).

d) “Hazardous Material” means any hazardous; toxic or dangerous waste, substance or material,
pollutant or contaminant, as defined for purposes of the Comprehensive Environmental Response,
Compensation and Liability Act of1980 (42 U.S.C. Section 9601 et seq,), as amended, or the
Resource Conservation and Recovery Act (42 U.S.C. Section 6901 et seq.), as amended, or any other
Laws, or any substance which is toxic, explosive, corrosive, flammable, infectious, radioactive,
carcinogenic, mutagenic, or otherwise hazardous, of any substance which contains
gasoline,-diesel fuel ar other petroleum hydrocarbons, polychlorinated biphenyls
(PCBs), or radon gas, urea formaldehyde, asbestos or lead.

e) “Laws ” means all federal, state and local laws, moratoria, ordinances, rules,
regulations, standards, orders, zoning conditions and other governmental requirements (including
those relating to the environment, health and safety, or handicapped persons) applicable to the
Property.

f) “Permits” means all permits, licenses, approvals, entitlements and other governmental
authorizations (including certificates of occupancy) required in connection with the ownership,
planning, development, construction, use, operation or maintenance of the Property.

12.9. Waiver of Trial by Jury. The parties hereby irrevocably waive their respective
rights to a jury trial of any claim or cause of action based upon or arising out of this
Agreement. This waiver shall apply to any subsequent amendments, renewals, supplements or
modifications to this Agreement, In the event of litigation, this Agreement may be filed as a
written consent to a trial by the court,

12.10. Press Releases, Any press release issued with respect to the transactions
contemplated by this Agreement shall be subject to the prior approval of Buyer.

12.11. Counterparts. This Agreement may be executed in one or more counterparts,
each of which shall be deemed to constitute an original, but all of which, when taken together,
shall constitute one and the same instrument, with the same effect as if all of the parties to
this Agreement had executed the same counterpart.

12.12, Time of the Essence. Time is of the essence with respect to the Close of Escrow
in particular and with respect to each party’s performance of its respective obligations in

laF;4. ,. f

general.

12.13, SEC Rule 3-14 Post-Closing Cooperation Subject to the terms and conditions
of this Section 12,13, Seller shall use its good faith efforts to provide Buyer such information
as reasonably necessary for Buyer to comply with Rule 210.3-14 of SEC Regulation S-X (“Rule
3-14’) together with the representation letter in the form of attached Exhibit “M” (the
“Representation Letter”), provided (i) Buyer shall deliver to Seller detailed

(10060024,1} 34701,0079

Page 23 of 25

26

written notice of Buyer’s request for such information no less than forty-five (45) days
before the date such information is required, and in no event shall such notice be delivered later
than twelve (12) months following Close of Escrow, (ii) no information shall be required if Rule
3-14 compliance can be reasonably achieved utilizing information available from the Due Diligence
Package or as was otherwise obtained by Buyer during the Inspection Period (as such terms are
defined in the Access Agreement), (iii) Buyer shall pay in advance all costs and expenses estimated
by Seller to compile the information requested by Seller for Rule 3-14 compliance, which amount
shall be paid to Seller within ten (10) business days following demand therefor (and, to the extent
Seller’s final costs exceeds such estimate, the difference shall be paid within ten (10) business
days following delivery of an invoice therefor), (iv) no information or documentation shall be
required if the source material is not in Seller’s possession or control, (v) as a covenant that
shall survive the Close of Escrow, Buyer shall indemnify, defend and hold Seller and the
Indemnified Parties harmless from and against (y) any and all claims, liabilities, causes of
action, damages, judgments, losses, costs and expenses (including-attorneys’ fees and court costs)
arising from or in connection with allegations of noncompliance with Rule 3-14, including, without
limitation, from the SIC, Provided Buyer has complied with the provisions of clauses (i) through
(iv) of the immediately preceding sentence and Seller has used its good faith efforts to provide
the required documentation, Seller shall have no further obligations or liabilities to Buyer
pursuant to this Section or otherwise in connection with Rule. 3-14, including with regard to the
completeness or accuracy of any information or documentation delivered, and (z) any and all claims,
liabilities, causes of action, damages, judgments, losses, costs and expenses to the extent
incurred by Seller arising from or in connection with any allegation by the auditor or any person
or entity claiming by or through the auditor that any information provided by Seller to the auditor
pursuant to the Representation Letter is false or misleading (provided, for purposes of Buyer’s
obligations under this clause (z), Buyer’s obligations shall arise upon Seller prevailing in any
such action or proceeding),

[SIGNATURES ON FOLLOWING PAGE]

110060024.11 34701,0079

Page 24 of 25

27

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date
first above written,

	 	 	 	 	 
	SELLER:	 	SANTA ANA ARTS IV, INC.,
	 	 	a California corporation

	 
	 	 	 	 
	
 
	 	/s/ Michael F. Harrah
	 	

	 
	 	 	 	 
	
 
	 	By:
	 	Michael F. Harrah, President

	 	 	BUYER: TRIPLE NET PROPERTIES, LLC,	 

a Virginia limited liability company

By: /s/ Richard Hutton

Name: RICHARD HUTTON

Title: CHIEF INVESTMENT OFFICER

By:

Name:

Title:

{10060024.1)

28

REAL PROPERTY PURCHASE AGREEMENT(10060024,1) 34701,0079

901 CIVIC. CENTER
DRIVE SANTA ANA,
CALIFORNIA

EXHIBIT LIST

Exhibit “A” Exhibit “B” Exhibit “C” Exhibit “D” Exhibit “E” Exhibit “F” Exhibit “G” Exhibit
“H” Exhibit “I” Exhibit “J” Exhibit “K” Exhibit “L” Exhibit “M”

DESCRIPTION OF THE LAND

EXCLUDED PERSONAL. PROPERTY

[RESERVED]. . .

FORM OF DEED

INTENTIONALLY OMITTED

FORM OF LEASE ASSIGNMENT AND ASSUMPTION

FORM OF BILL OF SALE, ASSIGNMENT AND ASSUMPTION FORM OF CERTIFICATE OF “NON FOREIGN” STATUS FORM OF
NOTICE TO TENANTS

FORM OF CLOSING CERTIFICATE

EXCEPTIONS TO REPRESENTATIONS AND WARRANTIES RENT ROLLS

FORM OF SEC REPRESENTATION LETTER

29

Exhibit “A”

DESCRIPTION OF THE LANDExhibit A

PARCEL 1, IN THE CITY OF SANTA ANA, COUNTY OF ORANGE, STATE CALIFORNIA, AS SHOWN ON A MAP FILED IN
BOOK 183 PAGES 9 TO 11, INCLUSIVE OF PARCEL MAPS, IN THE OFFICE OF THE COUNTY RECORDEER OF ORANGE
COUNTY, CALIFORNIA,

EXCEPT ALL OIL, GAS, HYDROCARBON SUBSTANCES AND MINERALS OF EVERY KIND AND CHARACTER, TOGETHER WITH
THE RIGHT TO DRILL INTO, THROUGH AND TO USE AND OCCUPY ALL PARTS OF SAID PROPERTY LYING MORE THAN
500 FEET BELOW THE SURFACE THEREOF FOR ANY PURPOSES INCIDENTAL TO THE EXPLORATION FOR AND
PRODUCTION OF OIL, GAS, HYDROCARBON SUBSTANCES OR MINERAL FROM SAID PROPRETY OR OTHER LANDS,
WITHOUT, HOWEVER, ANY RIGHT TO USE EITHER THE SURFACE OF SAID PROPERTY OR ANY PORTION OF SAID
PROPERTY WITHIN 500 FEET OF THE SURFACE FOR ANY PURPOSE OR PURPOSES WHATSOEVER AS RESERVED BY THE
COMMUNITY REDEVELOPMENT AGENCY OF THE. CITY OF SANTA ANA IN A DEED RECORDED OCTOBER 3, 1983 AS
INSTRUMENT NO, 83-435155, OF OFFICIAL RECORDS.

30EX-10.2

FIRST AMENDMENT TO REAL PROPERTY PURCHASE AGREEMENT{10060983.1)

This FIRST AMENDMENT TO REAL PROPERTY PURCHASE AGREEMENT (“Amendment”) is made effective
and dated for reference purposes as of March 30, 2006, between SANTA ANA ARTS IV, INC., a
California corporation f/k/a American Pacific Secured File Storage, Inc., a California corporation
(“Seller”), and TRIPLE NET PROPERTIES, LLC, a Virginia limited liability company (“Buyer”),

RECITALS

A. Seller and Buyer entered into that certain Real Property Purchase Agreement dated March
27, 2006 (the “Agreement”), for the purchase of certain real property located in Orange County,
California, commonly known as 901 Civic Center Drive, Santa Ana, California,
Capitalized terms in this Amendment but not otherwise defined shall have the meanings given them
in the Agreement,

B. Seller and Buyer desire to amend the Agreement as set forth in this Amendment.

Therefore based on the above facts and for valuable consideration, the receipt and
sufficiency of which are hereby acknowledeged, the parties agree to amend the Agreement as
follows:

1. Title Company; Title Documents. As used in the Agreement, the term “Title
Company” is amended to mean and refer to First American Title Insurance Company, 5 First American
Way, Santa Ana, California, 92707, Title Officer: Ruben Mares. Title Company has issued an ALTA
Plain Language Commitment dated March 20, 2006, as Commitment No. NCS. 2175561-SA1 (the
“Title Commitment”) for the issuance of a policy of title insurance insuring the sale of the
Property by Seller to Buyer, a copy of which is attached hereto as Exhibit A and
incorporated herein by reference, As used in the Agreement, the term “Title Documents” is amended
mean the Title Commitment, together with all underlying exception documents referred to therein,
and no other reports, commitments, documents, or surveys. All title matters set forth in the Title
Documents are hereby deemed approved by Buyer, and no Seller’s Title Cure or other act of
Seller shall be required as to any matter contained therein as a condition to Buyer’s obligation to
purchase the Property. By execution of this Amendment, Seller and Buyer hereby agree that the
condition precedent to Buyer’s obligation to purchase the Property set forth in Section 4.2 of the
Agreement has been satisfied,

2. Counterpart. No Further Amendments;Incorporation. This Amendment may be signed in
counterparts which, when taken together, shall constitute one original document. Except as
expressly modified by this Amendment, the Agreement remains unmodified and in full force and
effect, and is hereby ratified and reaffirmed, This Amendment is hereby incorporated into and made
a part of the Agreement, and. this Amendment and the Agreement shall be construed as one agreement;
provided, however, that in the event of any inconsistency between this Amendment and the Agreement,
the terms of this Amendment shall control.

IN WITNESS WHEREOF, this Amendment has been executed effective as of the date first
written above,

.2.

	 	 	 	 	 
	SELLER:	 	SANTA ANA ARTS IV, INC.,	 	 
	
 
	 	a California corporation

By:
	 	

/s/ Michael F. Harrah
	
 
	 	 	 	 
	
 
	 	 	 	Michael F. Harrah, President
	 
	 	 	 	 
	BUYER:

	 	TRIPLE NET PROPERTIES, LLC,
	 	

	 
	 	 	 	 
	 	 	a Virginia limited liability company

	 
	 	 	 	 
	
 
	 	By: /s/ Louis Rogers
	 	

	 
	 	 	 	 
	 	 	 

	 
	 	 	 	 
	
 
	 	Name: LOUIS ROGERS

Title:
	 	

PRESIDENT
	
 
	 	 	 	 
	 
	 	 	 	 
	
 
	 	By:
	 	

	
 
	 	 	 	 
	
 
	 	Name:
	 	

	
 
	 	 	 	 
	
 
	 	Title:
	 	

	
 
	 	 	 	 

1

EXHIBIT A

TITLE COMMITMENT

[ATTACHED]

S.CONT

EXHIBIT A

2

Form No, 1068,2PlrStAmerican 77t&e Insurance Company

ALTA Plain Language Commitment

Commitment No.: NC5-217556SA1

Page Number: 1

First American Title Insurance Company

National Commercial Services

S First American
Way Santa Ana, CA 92707

REVISED & UPDATED
TO 3/20/7006

March 29, 2006

Gil Marrero

Volt Commercial Brokerage

18500 Von Karman Avenue, Suite 150

Irvine, CA 92612-0508
Phone: (949)651-5100
Fax:
(9619)253.97
05

	 	 	 
	Customer Reference:

Title officer:

Phone;

Fax No.;

Mail:

Buyer;

	 	901 W Civic Center Dr

Ruben Mares

(714)?50-8360

(714)242-9551

rumares0Flrstam,com

T€3D

Property: 901 West Civic Center Drive, Santa Ana, CA Attached please find
the following Item(s): Commitment

Thank You for your confidence and support, We at First American Title Insurance Company
maintain the fundamental principle: — ,

Customer First!

	 	 	 
	Form No. 1068-.2Commitment No: NCS•217556 5A1First American Title Insurance Company

	 
	 	 
	ALTA Plain Language Commitment

	 	Page Number: 2

First American Title Insurance Company

INFORMATION

The Title Insurance Commitment is a legal contract between you and the company, It Is Issued to
show the basis on which we will Issue a Title Insurance Policy to you, The Policy will insure you
against certain risks to the land title, subject to the limitations shown In the policy.

The Company will give you a sample of the Policy form, if you ask,

The Commitment Is based on the land title as of the Commitment Date. Any changes in the land title
or the transaction may affect the Commitment and the Policy.

	 	 	The Commitment is subject to its Requirements, Exceptions and Conditions.	 

	 	 	This information is not part of the title insurance commitment.	 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	 

	 	Page
	Agreement to Issue Policy
	 	 	3	 
	Schedule A
	 	 	4	 
	1.
	 	Commitment Date
	 	 	 	 
	2.
	 	Policies to be Issued, Amounts and Proposed Insured
	 	 	4	 
	3.
	 	Interest In the Land and Owner
	 	 	4	 
	4.
	 	Description of the Land
	 	 	4	 

Schedule B-1 — Requirements
Schedule B-2 — Exceptions
Conditions

YOU SHOULD READ THE COMMITMENT VERY CAREFULLY.

If you have any questions about the Commitment,

please contact the issuing office.

	 	 	 
	Form No. 1065,2Commitment No: NCS•217556 5A1First American Title Insurance Company

	 
	 	 
	ALTA Plain Language Commitment

	 	Page Number: 3

COMMITMENT FOR TITLF INSURANCE

Issued by

First American Title Insurance Company

Agreement to Issue Policy

We agree to Issue a policy to you according to the terms of this Commitment.

When we show the policy amount and your name as the proposed Insured in Schedule A, this Commitment
becomes effective as or the Commitment Date shown In Schedule A,

If the Requirements shown In this Commitment have not been met within six months after the
Commitment Date, our obligation under this Commitment will end, Also, our obligation under this
Commitment will end when the Policy is Issued and then our obligation to you will be under the
Policy,

Our obligation under this Commitment Is limited by the following:

The Provisions in Schedule A.

The Requirements In Schedule R-1,

The Exceptions in Schedule B-1

The Conditions.

This Commitment is not valid without Schedule A and Sections 1 and 2 of Schedule B.

3

Farm No. 1068.7list American Title
Insurance Company

ALTA Plain Language Commitment

Commitment No,:NC9.217556-SA1 Page Number: 4

	 	 	 	S.CONTSCHEDULE AAmount $19,400,000.00	 

L Commitment Date: March 20, 2006 at 7;30 A.M.

2. Policy or Policies to be issued:

A) ALTA Standard Policy AL.TA Extended Owners 1992 Proposed Insured:

TED

B) ALTA Loan Polity $TBD Proposed Insured:

TBI)

	1	 	(A) The estate or Interest in the land described In this Commitment
is: Fee Simple	 

(B) Title to said estate or Interest at the date hereof Is
vested in; Santa Ana Arts IV, Inc., a California corporation

	4.	 	The land referred to in this Commitment Is situated in the City of Santa Ana, County of
Orange r State of California, and is described as follows;

	 	 	 
	Form No, I068-2Commitment No.; NCS-217556•SA1FirstAmerlcan Title Insurance Company

	 
	 	 
	ALTA Plain Language Commitment

	 	Page Number; 5

PARCEL 1 AS SHOWN ON A MAP FILED IN BOOK 183, PAGES 9 TO 11 INCLUSIVE OF PARCEL MAPS
IN THE OFFICE OF THE COUNTY RECORDER OF ORANGE COUNTY, CALIFORNIA,

EXCEPT ALL OIL, GAS, HYDROCARBON SUBSTANCES AND MINERALS OF EVERY KIND AND CHARACTER,
TOGETHER WITH THE RIGHT TO DRILL INTO, THROUGH, AND TO USE AND OCCUPY ALL PARTS OF SAID
PROPERTY LYING MORE THAN SOO FEET BELOW THE SURFACE THEREOF FOR ANY PURPOSES INCIDENTAL TO
THE EXPLORATION FOR AND PRODUCTION OF OIL, GAS, HYDROCARBON SUBSTANCES OR MINERALS FROM SAID
PROPERTY OR OTHER LANDS, WITHOUT, HOWEVER, ANY RIGHT TO USE EITHER THE SURFACE OP SAID
PROPERTY OR ANY PORTION 0F SAID PROPERTY.WITHIN 500 FEET OF THE SURFACE FOR ANY PURPOSE OR
PURPOSES WHATSOEVER, AS RESERVED BY THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA
ANA IN A DEED RECORDED OCTOBER 3, 1983 AS INSTRUMENT NO, 83-435155 OP OFFICIAL RECORDS,

APN: 405.183.12

	 	 	 
	Forrn No, 1068.2 Commitm

ALTA Plain Larnyuarle Commitment

	 	ent No: NCS.217556 SAl

Page Number:6

SCHEDULE B

SECTION ONE

REQUIREMENTS

The following requirements must be met:

1. Pay the agreed amounts for the interest in the and and/or the mortgage to be Insured.

2. Pay us the premiums, fees and charges for the policy.

	3.	 	Documents satisfactory to us creating the interest In the land and/or the mortgage to
be insured must be signed, delivered and recorded.	 

	4.	 	You must tell us In writing the name of anyone not referred to in this
Commitment who will get an interest in the land or who will make a loan on the land, We
may then make additional requirements or exceptions.	 

5. Releases(s) or Reconveyance(s) of Item(s): 18

6. You must: give us the following information:

	 	A.	 	Any off record teases,
surveys, etc, Statement(s) of
Identity, all parties.	 

An ALTA/ACSM survey of recent date which complies with the current
minimum standard detail requirements for ALTA/ACSM land title surveys,

7. Should any of the following entities be involved in this transaction, the Company will require:

A. WITH RESPECT TO A CORPORATION:

	 	1.	 	A certificate of good standing of recent date issued by the Secretary of
State of the corporation’s state of domicile,

	 	 	 	2, A certificate copy of a resolution of the Board of Directors authorizing
the contemplated transaction and designating which corporate officers shall have the
power to execute on behalf of the corporation.

	 	 	 	3, Other requirements which the Company may impose following its review of
the material required herein and other information which the Company may require.

B. WITH RESPECT TO A CALIFORNIA LIMITED PARTNERSHIP:

1. That a certified copy of the certificate of limited partnership (form LP-1) and
any amendments thereto (form LP-2) be recorded In the public records;

2. A full copy of the partnership. agreement and any amendments;

3. Satisfactory evidence of the consent of a majority in Interest of the limited partners
to the

	 	 	 
	Form No. 1068.2 Commitment No.; NCS•217556•SAt
	ALTA Plain Language Commitment

	 	Page Number; 7

contemplated transaction;

	 	4.	 	Other requirements which the Company may Impose following Its review of the
material required herein and other Information which the Company may require,

C, WITH RESPECT TO A FOREIGN LIMITED PARTNERSHIP:

	 	 	 	1, That a certified copy or the application for registration,
foreign limited partnership (form LP-5) and any amendments thereto (form LP-6) be
recorded In the public records;	 

2. A full copy of the partnership agreement and any amendment;

	 	 	 	3, Satisfactory evidence of the consent or a majority in
interest of the limited partners to the contemplated transaction;	 

	 	4.	 	Other requirements which the Company may Impose following its review of the
material required herein and other Information which the Company may require;

D. WITH RESPECT TO A GENERAL PARTNERSSHIP:

. .

1. That a certified copy of a statement partnership authority pursuant to section 16303
of the California Corporation Code (form GPM, executed by at least two partners, and a
certified copy of any amendments to such statement (form GP-7), be recorded in the public
records;

	 	2.	 	A full copy of the partnership agreement and any amendments;

	 	3.	 	Other requirements which the Company may impose following is
review of the material required herein and other Information which the Company may
require.

E. WITH RESPECT TO A LIMITED LIABILITY COMPANY:

1. A copy of its operating agreement and any amendments thereto;

2.If It is a California limited (lability company, that a certified copy of Its articles
of organization (LLC-1) and any certificate of correction (LLC-11), certificate of
amendment (LLC-2), or restatement of articles of organization (LLC•10) be recorded in the
public records;

	 	3.	 	If It is a foreign limited liability company, a certified copy of its
application for registration (LLC-5) be recorded In the public records;

	 	4.	 	With respect to any deed, deed of trust, lease, subordination agreement
or other document or instrument executed by such limited liability
company and presented for recordation by the Company or upon which the
Company is asked to rely, that such document or Instrument be executed in
accordance with one of the following, as appropriate;	 

	 	i)	 	If the limited liability company properly operates through
officers appointed or elected pursuant to the terms of a written operating
agreement, such documents must be executed by at least two duly elected or
appointed officers, as follows: the chairman of the board, the
president or any vice president, and any secretary, assistant secretary,
the chief financial officer or any assistant treasurer;	 

	 	ii)	 	If the limited liability company properly operates
through a manager or managers Identified in the articles of organization and/or
duly elected pursuant to the terms of a written operating agreement, such
document must be executed by at least two such managers or by one manager if the
limited liability company properly operates with the existence of only one
manager,

	 	5.	 	Other requirements which the Company may impose following Its review of
the material required herein and other information which the Company may require,

F. WITH RESPECT TO A TRUST:

	 	 	 	1, A certification pursuant to Section 18100,5 of the California
Probate Code In a form satisfactory to the Company.	 

	 	 	 	2, Copies of those excerpts from the original trust documents and
amendments thereto which designate the trustee and confer upon the
trustee the power to act In the pending transaction.	 

	 	 	 	3, Other requirements which the Company may Impose following
Its review of the material require herein and other information
which the Company may require.	 

First American Title Insurance Company

	 	 	 
	Form No, 1O6a,1 Commitm

ALTA Plain Language Commitment

	 	ent No.: NCS-217556-SA1

Page Number: 8

G. WITH RESPECT TO INDIVIDUALS;

1. A statement of informationFirstAmerican Title
Insurance Company

	 	 	 
	palm No. I068-2Commitment No.: NCS- 217556-SA1First American Title insurance Company

	 
	 	 
	ALTA Plain Language Commitment

	 	Page Number: 9

 SCHEDULE B

SECTION TWO
EXCEPTIONS

Any policy we issue will have the following exceptions unless they are taken care of to our
satisfaction. The printed exceptions and exclusions from the coverage of the policy or policies are
set forth in Exhibit A attached, Copies of the policy forms should be read, They are available from
the office which Issued this Commitment.

	1.	 	General and special taxes and assessments for the fiscal year 2006-2007, a lien not yet
due or payable.	 

	 	 	 	 	 	 	 	 	 
	2,	 	General and special taxes and assessments for the fiscal year 2005.2006,

	 
	 	First Installment;
	 	$48,239.99, PAID
	 
	 	Penalty;
	 	$	0.00.	 
	 
	 	Second Installment;
	 	$48,239.90, DUE
	 
	 	Penalty:
	 	$4,834.00 (after April 10, 2006)
	 
	 	Tax Rate Area:
	 	 	11-005	 

A. P. No.; 405-183.12

	3.	 	The lien of supplemental taxes, If any, assessed pursuant to Chapter 3.5 commencing
with Section 75 of the California Revenue and Taxation Code,	 

4. An easement shown or dedicated on the map filed or recorded as Book 17, Page 8 of Tract
Map

For: Telephone and Electric Lines and Incidental purposes.

	 	 	5, An easement for telephone and electric line poles, wires and conduits and incidental
purposes, recorded In Book Book 500,Book 522,Book 555,Book 582,Book 606,Book 627,$ook
636,Book 499,Boak 37 of Deeds, Page Page 9,Page 106,Page 339,Page 332,Page 233,Page
19,Page 101.,Page 83,Page 271,	 

	 	 	 
	In Favor of:

Affects;

	 	Jo Lowell and Wife

A portion of said land

	6.	 	An easement for sidewalk, street and Incidental purposes in the document recorded
December 14, 1937 as Book 918, Page 100 of Official Records.	 

7. This item has been intentionally deleted.

	8.	 	Any restrictions covering the future use of said land, as disclosed by a “Statement
for a — ; Redevelopment Project°, recorded in Book 10807, Page 9 of Official Records,
covering the herein described and other land,

	 	 	 
	Form No. 1068-2Commitment No:NCS-217555-SA1First American 77tIe Insurance Company

	 
	 	 
	ALTA Plain Language Commitment

	 	Page Number: 10

9. Abutter’s rights of ingress and egress to or from Flower Street have been relinquished in

the document recorded September 27, 1977 as Book 12392, Page 758 of Official Records,

	 	 	10, Any rights of ingress and egress over said Olive Street, as vacated , that the owners of
said land may have, as long as they are In title to said and,

	 	 	11, Covenants, conditions, restrictions and easements In the document recorded October
3, 1983 as Instrument No, 83-435155 of Official Records, but deleting any covenant, condition
or restriction indicating a preference, limitation or discrimination based on race, color,
religion, sex, handicap, familial status, national origin, sexual orientation, marital
status, ancestry, source of income or disability, to the extent such covenants, conditions or
restrictions violate Title 42, Section 3604(c), of the United States Codes. Lawful
restrictions under state and federal law on the age of 4ccup nt In senior
housing or housing  for older persons shall not
be.construe.d.as. restrictions
based on familial status,

	 	 	12, Covenants, conditions, restrictions and easements in the document recorded.October 3, 1983 as
Instrument No, 83-435154 of Official Records, which provide that a violation thereof shall not
defeat or render invalid the lien of any first mortgage or deed of trust made In good faith
and for value, but deleting any covenant, condition or restriction Indicating a preference,
limitation or discrimination based on race, color, religion, sex, handicap, familial status,
national origin, sexual orientation, marital status, ancestry, source of income or disability,
to the extent such covenants, conditions or restrictions violate Title 42, Section 3604(c), of
the United States Codes or Section 12955 of the California Government Code. Lawful
restrictions under state and federal law on the age of occupants in senior housing or housing
for older persons shall not be construed as restrictions based on familial status,

	13.	 	Ali Abutter’s rights and access rights in and to the west half of Lowell
Street have been reserved In a deed recorded October 3, 1983as Instrument No,
83.435155 of Official Records,	 

	 	 	 	 	 
	14.

	 	An easement shown

or dedicated on the

map filed or

recorded October

11, 1983 as Book

183, Page 9 of

Parcel Map For:
	 	Public utility purposes and

incidental purposes,

	15.

	 	An easement shown

or dedicated on the

map filed or

recorded October

It, 1983 as Book

183, Page 9 of

Parcel Map For:
	 	Storm Drain Purposes and

Incidental purposes.

16. This Item has been intentionally deleted.

	17.	 	An easement for either or both underground lines, conduits and incidental purposes, recorded
as Instrument No, 85,041953 of Official Records..

	 	 	 
	In Favor of:

Affects:

	 	Southern California Edison Company

A portion of said land

4

Form No. 1068.2 Commitment No: NC5
217556 SAlFirst American Title Insurance Company

ALFA Plain Language Commitment Page Number: 11

	18.	 	A Deed of Trust to secure an original Indebtedness of $6,252,500,00. recorded December
31, 2002 as Instrument No. 2002001203707 of Official Records,	 

	 	 	 
	Dated:

Trustor

Trustee:

Beneficiary:

	 	•December 23, 2002

Santa Ana Arts IV, Inc,, a California corporation

T,D, Service Company, a California corporation

Lockheed Federal Credit Union, a federal credit union

A document entitled “Assignment of Leases and Rents” recorded December 31, 2002 as
Instrument No. 2002001203708 of Official Records, as additional security for the payment of
the Indebtedness secured by the deed of trust.

	19.	 	Any facts, rights, interests or claims which would be disclosed by a correct ALTA/ACSM
survey.

5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00102-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00102-of-00352.parquet"}]]