Document:

ADVANCED
MEDICAL ISOTOPE CORPORATION

 

2015 OMNIBUS SECURITIES AND INCENTIVE PLAN

 

    			 

    	 	 	 

    

 

ADVANCED
MEDICAL ISOTOPE CORPORATION

 

2015
OMNIBUS SECURITIES AND INCENTIVE PLAN

 

Table
of Contents

 

	 	 	Page
	 	 	 
	ARTICLE
    I	PURPOSE	1
	 	 	 
	ARTICLE
    II	DEFINITIONS	1
	 	 	 
	ARTICLE
    III	EFFECTIVE DATE OF PLAN	7
	 	 	 
	ARTICLE
    IV	ADMINISTRATION	7
		Section 4.1 Composition
    of Committee	7
		Section 4.2 Powers	7
		Section 4.3 Additional
    Powers	7
		Section 4.4 Committee
    Action	7
	 	 	 
	ARTICLE
    V	STOCK SUBJECT TO PLAN
    AND LIMITATIONS THEREON	8
		Section 5.1 Stock Grant
    and Award Limits	8
		Section 5.2 Stock Offered	8
		Section 5.3 Lock-Up
    Agreement	8
	 	 	 
	ARTICLE
    VI	ELIGIBILITY FOR AWARDS;
    TERMINATION OF EMPLOYMENT, DIRECTOR STATUS OR CONSULTANT STATUS	9
		Section 6.1 Eligibility	9
		Section 6.2 Termination
    of Employment or Director Status	9
		Section 6.3 Termination
    of Consultant Status	10
		Section 6.4 Special
    Termination Rule	11
		Section 6.5 Termination
    for Cause	11
	 	 	 
	ARTICLE
    VII	OPTIONS	12
		Section 7.1 Option
    Period	12
		Section 7.2 Limitations
    on Exercise of Option	12
		Section 7.3 Special
    Limitations on Incentive Stock Options	12
		Section 7.4 Option
    Agreement	12
		Section 7.5 Option
    Price and Payment	13
		Section 7.6 Stockholder
    Rights and Privileges	13
		Section 7.7 Options
    and Rights in Substitution for Stock Options Granted by Other Corporations	13
		Section 7.8 Prohibition
    Against Repricing	13
	 	 	 
	ARTICLE
    VIII	RESTRICTED STOCK AWARDS	14
		Section 8.1 Restriction
    Period to be Established by Committee	14
		Section 8.2 Other Terms
    and Conditions	14
		Section 8.3 Payment
    for Restricted Stock	14
		Section 8.4 Restricted
    Stock Award Agreements	14

 

    			 

    	 	 	 

    

 

ADVANCED
MEDICAL ISOTOPE CORPORATION

 

2015
OMNIBUS SECURITIES AND INCENTIVE PLAN

Table
of Contents (continued)

 

	 	 	Page
	 	 	 
	ARTICLE
    IX	UNRESTRICTED
    STOCK AWARDS	15
	 	 	 
	ARTICLE
    X	RESTRICTED
    STOCK UNIT AWARDS	15
		Section
    10.1 Terms and Conditions	15
		Section
    10.2 Payments	15
	 	 	 
	ARTICLE
    XI	PERFORMANCE
    UNIT AWARDS	16
		Section
    11.1 Terms and Conditions	16
		Section
    11.2 Payments	16
	 	 	 
	ARTICLE
    XII	PERFORMANCE
    SHARE AWARDS	16
		Section
    12.1 Terms and Conditions	16
		Section
    12.2 Stockholder Rights and Privileges	16
	 	 	
	ARTICLE
    XIII	DISTRIBUTION
    EQUIVALENT RIGHTS	17
		Section
    13.1 Terms and Conditions	17
		Section
    13.2 Interest Equivalents	17
	 	 	 
	ARTICLE
    XIV	STOCK
    APPRECIATION RIGHTS	17
		Section
    14.1 Terms and Conditions	17
		Section
    14.2 Tandem Stock Appreciation Rights	18
	 	 	 
	ARTICLE
    XV	RECAPITALIZATION
    OR REORGANIZATION	18
		Section
    15.1 Adjustments to Common Stock	18
		Section
    15.2 Recapitalization	19
		Section
    15.3 Other Events	19
		Section
    15.4 Powers Not Affected	19
		Section
    15.5 No Adjustment for Certain Awards	19
	 	 	 
	ARTICLE
    XVI	AMENDMENT
    AND TERMINATION OF PLAN	20
	 	 	 
	ARTICLE
    XVII	SPECIAL
    RULES	20
		Section
    17.1 Right of First Refusal	20
		Section
    17.2 Call Option	20
	 	 	 
	ARTICLE
    XVIII	MISCELLANEOUS	21
		Section
    18.1 No Right to Award	21
		Section
    18.2 No Rights Conferred	21
		Section
    18.3 Other Laws; No Fractional Shares; Withholding	21
		Section
    18.4 No Restriction on Corporate Action	22
		Section
    18.5 Restrictions on Transfer	22
		Section
    18.6 Beneficiary Designations	22
		Section
    18.7 Rule 16b-3	22
		Section
    18.8 Section 162(m)	23
		Section
    18.9 Section 409A	24
		Section
    18.10 Indemnification	24
		Section
    18.11 Other Plans	24
		Section
    18.12 Limits of Liability	24
		Section
    18.13 Governing Law	24
		Section
    18.14 Severability of Provisions	24
		Section
    18.15 No Funding	24
		Section
    18.16 Headings	24
		Section
    18.17 Terms of Award Agreements	24

 

    		ii	 

    	 	 	 

    

 

ADVANCED
MEDICAL ISOTOPE CORPORATION

 

2015 OMNIBUS SECURITIES AND INCENTIVE PLAN

 

ARTICLE
I

 PURPOSE

 

The
purpose of this Advanced Medical Isotope Corporation 2015 Omnibus Securities and Incentive Plan (the “Plan”)
is to benefit the stockholders of Advanced Medical Isotope Corporation, a Delaware corporation (the “Company”),
by assisting the Company to attract, retain and provide incentives to key management employees and nonemployee directors of, and
nonemployee consultants to, the Company and its Affiliates, and to align the interests of such employees, nonemployee directors
and nonemployee consultants with those of the Company’s stockholders. Accordingly, the Plan provides for the granting of
Distribution Equivalent Rights, Incentive Stock Options, Non-Qualified Stock Options, Performance Share Awards, Performance Unit
Awards, Restricted Stock Awards, Restricted Stock Unit Awards, Stock Appreciation Rights, Tandem Stock Appreciation Rights, Unrestricted
Stock Awards or any combination of the foregoing, as may be best suited to the circumstances of the particular Employee, Director
or Consultant as provided herein.

 

ARTICLE
II

DEFINITIONS

 

The
following definitions shall be applicable throughout the Plan unless the context otherwise requires:

 

“Affiliate”
shall mean any corporation which, with respect to the Company, is a “subsidiary corporation” within the meaning of
Section 424(f) of the Code.

 

“Award”
shall mean, individually or collectively, any Distribution Equivalent Right, Option, Performance Share Award, Performance Unit
Award, Restricted Stock Award, Restricted Stock Unit Award, Stock Appreciation Right or Unrestricted Stock Award.

 

“Award
Agreement” shall mean a written agreement between the Company and the Holder with respect to an Award, setting forth
the terms and conditions of the Award, and each of which shall constitute a part of the Plan.

 

“Board”
shall mean the Board of Directors of the Company.

 

“Cause”
shall mean (i) if the Holder is a party to an employment or similar agreement with the Company or an Affiliate which agreement
defines “Cause” (or a similar term) therein, “Cause” shall have the same meaning as provided for
in such agreement, or (ii) for a Holder who is not a party to such an agreement, “Cause” shall mean termination
by the Company or an Affiliate of the employment (or other service relationship) of the Holder by reason of the Holder’s
(A) intentional failure to perform reasonably assigned duties, (B) dishonesty or willful misconduct in the performance of the
Holder’s duties, (C) involvement in a transaction which is materially adverse to the Company or an Affiliate, (D) breach
of fiduciary duty involving personal profit, (E) willful violation of any law, rule, regulation or court order (other than misdemeanor
traffic violations and misdemeanors not involving misuse or misappropriation of money or property), (F) commission of an act of
fraud or intentional misappropriation or conversion of any asset or opportunity of the Company or an Affiliate, or (G) material
breach of any provision of the Plan or the Holder’s Award Agreement or any other written agreement between the Holder and
the Company or an Affiliate, in each case as determined in good faith by the Board, the determination of which shall be final,
conclusive and binding on all parties.

 

    	 	 1	 

    	 	 	 

    

 

“Change
of Control” shall mean (i) for a Holder who is a party to an employment or consulting agreement with the Company or
an Affiliate which agreement defines “Change of Control” (or a similar term) therein, “Change of Control”
shall have the same meaning as provided for in such agreement, or (ii) for a Holder who is not a party to such an agreement, “Change
of Control” shall mean the satisfaction of any one or more of the following conditions (and the “Change of Control”
shall be deemed to have occurred as of the first day that any one or more of the following conditions shall have been satisfied):

 

(a)
Any person (as such term is used in paragraphs 13(d) and 14(d)(2) of the Exchange Act, hereinafter in this definition, “Person”),
other than the Company or an Affiliate or an employee benefit plan of the Company or an Affiliate, becomes the beneficial owner
(as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing more than
fifty percent (50%) of the combined voting power of the Company’s then outstanding securities;

 

(b)
The closing of a merger, consolidation or other business combination (a “Business Combination”) other than
a Business Combination in which holders of the Common Stock immediately prior to the Business Combination have substantially the
same proportionate ownership of common stock of the surviving corporation immediately after the Business Combination as immediately
before;

 

(c)
The closing of an agreement for the sale or disposition of all or substantially all of the Company’s assets to any entity
that is not an Affiliate;

 

(d)
The approval by the holders of shares of Common Stock of a plan of complete liquidation of the Company other than a liquidation
of the Company into any subsidiary or a liquidation a result of which persons who were stockholders of the Company immediately
prior to such liquidation have substantially the same proportionate ownership of shares of common stock of the surviving corporation
immediately after such liquidation as immediately before;

 

(e)
Within any twenty-four (24) month period, the Incumbent Directors shall cease to constitute at least a majority of the Board or
the board of directors of any successor to the Company; provided, however, that any director elected to the Board,
or nominated for election, by a majority of the Incumbent Directors then still in office, shall be deemed to be an Incumbent Director
for purposes of this paragraph (e), but excluding, for this purpose, any such individual whose initial assumption of office occurs
as a result of either an actual or threatened election contest with respect to the election or removal of directors or other actual
or threatened solicitation of proxies or consents by or on behalf of an individual, entity or “group” other than the
Board (including, but not limited to, any such assumption that results from paragraphs (a), (b), (c), (d) or (f) of this definition);
or

 

(f)
Any other event which shall be deemed by a majority of the members of the Board to constitute a “Change of Control.”

 

    	 	 2	 

    	 	 	 

    

 

Notwithstanding
the foregoing, a “Change of Control” shall not be deemed to occur if the Company files for bankruptcy, liquidation
or reorganization under the United States Bankruptcy Code.

 

“Code”
shall mean the Internal Revenue Code of 1986, as amended. Reference in the Plan to any section of the Code shall be deemed to
include any amendments or successor provisions to any section and any regulation under such section.

 

“Committee”
shall mean a committee comprised of (i) at any time that the Common Stock is not registered under Section 12 of the Exchange Act,
the full Board, and (ii) at any time that the Common Stock is registered under Section 12 of the Exchange Act, not less than three
(3) members of the Board who are selected by the Board as provided in Section 4.1.

 

“Common
Stock” shall mean the common stock, par value $.001 per share, of the Company.

 

“Company”
shall mean Advanced Medical Isotope Corporation, a Delaware corporation, and any successor thereto.

 

“Consultant”
shall mean any non-Employee (individual or entity) advisor to the Company or an Affiliate who or which has contracted directly
with the Company or an Affiliate to render bona fide consulting or advisory services thereto.

 

“Director”
shall mean a member of the Board or a member of the board of directors of an Affiliate.

 

“Distribution
Equivalent Right” shall mean an Award granted under Article XIII of the Plan which entitles the Holder to receive bookkeeping
credits, cash payments and/or Common Stock distributions equal in amount to the distributions that would have been made to the
Holder had the Holder held a specified number of shares of Common Stock during the period the Holder held the Distribution Equivalent
Right.

 

“Distribution
Equivalent Right Award Agreement” shall mean a written agreement between the Company and a Holder with respect to a
Distribution Equivalent Right Award.

 

“Effective
Date” of the Advanced Medical Isotope Corporation 2015 Omnibus Securities and Incentive Plan was October 31, 2015.

 

“Employee”
shall mean any employee, including officers, of the Company or an Affiliate.

 

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

 

    	 	 3	 

    	 	 	 

    

 

“Fair
Market Value” shall mean, as determined consistent with the applicable requirements of Sections 409A and 422 of the
Code, as of any specified date, the closing sales price of the Common Stock for such date (or, in the event that the Common Stock
is not traded on such date, on the immediately preceding trading date) on the Nasdaq Stock Market or a domestic or foreign national
securities exchange (including London’s Alternative Investment Market) on which the Common Stock may be listed, as reported
in The Wall Street Journal or The Financial Times. If the Common Stock is not listed on the Nasdaq Stock Market or on a national
securities exchange, but is quoted on the OTC Bulletin Board or by the National Quotation Bureau, the Fair Market Value of the
Common Stock shall be the mean of the bid and asked prices per share of the Common Stock for such date. If the Common Stock is
not quoted or listed as set forth above, Fair Market Value shall be determined by the Board in good faith by any fair and reasonable
means (which means, with respect to a particular Award grant, may be set forth with greater specificity in the applicable Award
Agreement). The Fair Market Value of property other than Common Stock shall be determined by the Board in good faith by any fair
and reasonable means, and consistent with the applicable requirements of Sections 409A and 422 of the Code.

 

“Family
Member” shall mean any child, stepchild, grandchild, parent, stepparent, spouse, former spouse, sibling, niece, nephew,
mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law or sister-in-law, including adoptive relationships,
any person sharing the Holder’s household (other than a tenant or employee of the Holder), a trust in which such persons
have more than fifty percent (50%) of the beneficial interest, a foundation in which such persons (or the Holder) control the
management of assets, and any other entity in which such persons (or the Holder) own more than fifty percent (50%) of the voting
interests.

 

“Holder”
shall mean an Employee, Director or Consultant who has been granted an Award or any such individual’s beneficiary, estate
or representative, to the extent applicable.

 

“Incentive
Stock Option” shall mean an Option which is intended by the Committee to constitute an “incentive stock option”
under Section 422 of the Code.

 

“Incumbent
Director” shall mean, with respect to any period of time specified under the Plan for purposes of determining whether
or not a Change of Control has occurred, the individuals who were members of the Board at the beginning of such period.

 

“Non-Qualified
Stock Option” shall mean an Option which is not an Incentive Stock Option.

 

“Option”
shall mean an Award granted under Article VII of the Plan of an option to purchase shares of Common Stock and includes both Incentive
Stock Options and Non-Qualified Stock Options.

 

“Option
Agreement” shall mean a written agreement between the Company and a Holder with respect to an Option.

 

    	 	 4	 

    	 	 	 

    

 

“Performance
Criteria” shall mean the criteria that the Committee selects for purposes of establishing the Performance Goal(s) for
a Holder for a Performance Period.

 

“Performance
Goals” shall mean, for a Performance Period, the written goal or goals established by the Committee for the Performance
Period based upon the Performance Criteria.

 

“Performance
Period” shall mean one or more periods of time, which may be of varying and overlapping durations, selected by the Committee,
over which the attainment of one or more Performance Goals or other business objectives shall be measured for purposes of determining
a Holder’s right to, and the payment of, a Qualified Performance-Based Award.

 

“Performance
Share Award” shall mean an Award granted under Article XII of the Plan under which, upon the satisfaction of predetermined
individual and/or Company (and/or Affiliate) performance goals and/or objectives, shares of Common Stock are paid to the Holder.

 

“Performance
Share Award Agreement” shall mean a written agreement between the Company and a Holder with respect to a Performance
Share Award.

 

“Performance
Unit” shall mean a Unit awarded to a Holder pursuant to a Performance Unit Award.

 

“Performance
Unit Award” shall mean an Award granted under Article XI of the Plan under which, upon the satisfaction of predetermined
individual and/or Company (and/or Affiliate) performance goals and/or objectives, a cash payment shall be made to the Holder,
based on the number of Units awarded to the Holder.

 

“Performance
Unit Award Agreement” shall mean a written agreement between the Company and a Holder with respect to a Performance
Unit Award.

 

“Plan”
shall mean this Advanced Medical Isotope Corporation 2015 Omnibus Securities and Incentive Plan, as it may be further amended
from time to time, together with each of the Award Agreements utilized hereunder.

 

“Qualified
Performance-Based Award” shall mean an Award intended to qualify as “performance-based” compensation under
Section 162(m) of the Code.

 

“Restricted
Stock Award” shall mean an Award granted under Article VIII of the Plan of shares of Common Stock, the transferability
of which by the Holder shall be subject to Restrictions.

 

“Restricted
Stock Award Agreement” shall mean a written agreement between the Company and a Holder with respect to a Restricted
Stock Award.

 

“Restricted
Stock Unit Award” shall mean an Award granted under Article X of the Plan under which, upon the satisfaction of predetermined
individual service-related vesting requirements, a cash payment shall be made to the Holder, based on the number of Units awarded
to the Holder.

 

    	 	 5	 

    	 	 	 

    

 

“Restricted
Stock Unit Award Agreement” shall mean a written agreement between the Company and a Holder with respect to a Restricted
Stock Unit Award.

 

“Restriction
Period” shall mean the period of time for which shares of Common Stock subject to a Restricted Stock Award shall be
subject to Restrictions, as set forth in the applicable Restricted Stock Award Agreement.

 

“Restrictions”
shall mean forfeiture, transfer and/or other restrictions applicable to shares of Common Stock awarded to an Employee, Director
or Consultant under the Plan pursuant to a Restricted Stock Award and set forth in a Restricted Stock Award Agreement.

 

“Rule
16b-3” shall mean Rule 16b-3 promulgated by the Securities and Exchange Commission under the Exchange Act, as such may
be amended from time to time, and any successor rule, regulation or statute fulfilling the same or a substantially similar function.

 

“Stock
Appreciation Right” shall mean an Award granted under Article XIV of the Plan of a right, granted alone or in connection
with a related Option, to receive a payment on the date of exercise.

 

“Stock
Appreciation Right Award Agreement” shall mean a written agreement between the Company and a Holder with respect to
a Stock Appreciation Right.

 

“Tandem
Stock Appreciation Right” shall mean a Stock Appreciation Right granted in connection with a related Option, the exercise
of which shall result in termination of the otherwise entitlement to purchase some or all of the shares of Common Stock under
the related Option, all as set forth in Section 14.2.

 

“Ten
Percent Stockholder” shall mean an Employee who, at the time an Incentive Stock Option is granted to him or her, owns
stock possessing more than ten percent (10%) of the total combined voting power of all classes of stock of the Company or of any
parent corporation or subsidiary corporation thereof (both as defined in Section 424 of the Code), within the meaning of Section
422(b)(6) of the Code.

 

“Total
and Permanent Disability” shall mean the inability to engage in any substantial gainful activity by reason of any medically
determinable physical or mental impairment which can be expected to result in death or which has lasted or can be expected to
last for a continuous period of not less than twelve (12) months, all as described in Section 22(e)(3) of the Code.

 

“Units”
shall mean bookkeeping units, each of which represents such monetary amount as shall be designated by the Committee in each Performance
Unit Award Agreement, or represents one (1) share of Common Stock for purposes of each Restricted Stock Unit Award.

 

“Unrestricted
Stock Award” shall mean an Award granted under Article IX of the Plan of shares of Common Stock which are not subject
to Restrictions.

 

“Unrestricted
Stock Award Agreement” shall mean a written agreement between the Company and a Holder with respect to an Unrestricted
Stock Award.

 

    	 	 6	 

    	 	 	 

    

 

ARTICLE
III

EFFECTIVE DATE OF PLAN

 

The
Plan shall be effective as of the Effective Date, provided that the Plan is approved by the stockholders of the Company within
twelve (12) months of such date.

 

ARTICLE
IV

ADMINISTRATION

 

Section
4.1 Composition of Committee. The Plan shall be administered by the Committee, which shall be appointed by the Board. Notwithstanding
the foregoing, however, at any time that the Common Stock is registered under Section 12 of the Exchange Act, the Committee shall
consist solely of two (2) or more Directors who are each (i) “outside directors” within the meaning of Section 162(m)
of the Code (“Outside Directors”), (ii) “non-employee directors” within the meaning of Rule 16b-3
and (iii) “independent” for purposes of any applicable listing requirements (“Non-Employee Directors”);
provided, however, that the Board or the Committee may delegate to a committee of one or more members of the Board
who are not (x) Outside Directors, the authority to grant Awards to eligible persons who are not (A) then “covered employees”
within the meaning of Section 162(m) of the Code and are not expected to be “covered employees” at the time of recognition
of income resulting from such Award, or (B) persons with respect to whom the Company wishes to comply with the requirements of
Section 162(m) of the Code, and/or (y) Non-Employee Directors, the authority to grant Awards to eligible persons who are not then
subject to the requirements of Section 16 of the Exchange Act. If a member of the Committee shall be eligible to receive an Award
under the Plan, such Committee member shall have no authority hereunder with respect to his or her own Award.

 

Section
4.2 Powers. Subject to the provisions of the Plan, the Committee shall have the sole authority, in its discretion, to make
all determinations under the Plan, including but not limited to determining which Employees, Directors or Consultants shall receive
an Award, the time or times when an Award shall be made (the date of grant of an Award shall be the date on which the Award is
awarded by the Committee), what type of Award shall be granted, the term of an Award, the date or dates on which an Award vests
(including acceleration of vesting), the form of any payment to be made pursuant to an Award, the terms and conditions of an Award
(including the forfeiture of the Award (and/or any financial gain) if the Holder of the Award violates any applicable restrictive
covenant thereof), the Restrictions under a Restricted Stock Award and the number of shares of Common Stock which may be issued
under an Award, all as applicable. In making such determinations the Committee may take into account the nature of the services
rendered by the respective Employees, Directors and Consultants, their present and potential contribution to the Company’s
(or the Affiliate’s) success and such other factors as the Committee in its discretion shall deem relevant.

 

Section
4.3 Additional Powers The Committee shall have such additional powers as are delegated to it under the other provisions
of the Plan. Subject to the express provisions of the Plan, the Committee is authorized to construe the Plan and the respective
Award Agreements executed hereunder, to prescribe such rules and regulations relating to the Plan as it may deem advisable to
carry out the intent of the Plan, and to determine the terms, restrictions and provisions of each Award, including such terms,
restrictions and provisions as shall be requisite in the judgment of the Committee to cause designated Options to qualify as Incentive
Stock Options, and to make all other determinations necessary or advisable for administering the Plan. The Committee may correct
any defect or supply any omission or reconcile any inconsistency in any Award Agreement in the manner and to the extent it shall
deem expedient to carry it into effect. The determinations of the Committee on the matters referred to in this Article IV shall
be conclusive and binding on the Company and all Holders.

 

Section
4.4 Committee Action In the absence of specific rules to the contrary, action by the Committee shall require the consent
of a majority of the members of the Committee, expressed either orally at a meeting of the Committee or in writing in the absence
of a meeting. No member of the Committee shall have any liability for any good faith action, inaction or determination in connection
with the Plan.

 

    	 	 7	 

    	 	 	 

    

 

ARTICLE
V

STOCK SUBJECT TO PLAN AND LIMITATIONS THEREON

 

Section
5.1 Stock Grant and Award Limits. The Committee may from time to time grant Awards to one or more Employees, Directors
and/or Consultants determined by it to be eligible for participation in the Plan in accordance with the provisions of Article
VI. Subject to Article XV, the aggregate number of shares of Common Stock that may be issued under the Plan shall not exceed twenty
percent (20%) of the issued and outstanding shares of Common Stock on an as converted primary basis (the “As Converted
Primary Shares”) on a rolling basis. For calculation purposes, the As Converted Primary Shares shall include all shares
of Common Stock and all shares of Common Stock issuable upon the conversion of outstanding preferred stock and other convertible
securities, but shall not include any shares of Common Stock issuable upon the exercise of options, warrants and other convertible
securities issued pursuant to the Plan. The number of authorized shares of Common Stock reserved for issuance under the Plan shall
automatically be increased concurrently with the Company’s issuance of fully paid and non- assessable shares of As Converted
Primary Shares. Shares shall be deemed to have been issued under the Plan solely to the extent actually issued and delivered pursuant
to an Award. To the extent that an Award lapses, expires, is canceled, is terminated unexercised or ceases to be exercisable for
any reason, or the rights of its Holder terminate, any shares of Common Stock subject to such Award shall again be available for
the grant of a new Award. Notwithstanding any provision in the Plan to the contrary, the maximum number of shares of Common Stock
that may be subject to Awards of Options under Article VII and/or Stock Appreciation Rights under Article XIV, in either or both
cases granted to any one Employee during any calendar year, shall be twenty five percent (25%) of the available shares under the
plan (subject to adjustment in the same manner as provided in Article XV with respect to shares of Common Stock subject to Awards
then outstanding). The limitation set forth in the preceding sentence shall be applied in a manner which shall permit compensation
generated in connection with the exercise of Options or Stock Appreciation Rights to constitute “performance-based”
compensation for purposes of Section 162(m) of the Code, including, but not limited to, counting against such maximum number of
shares, to the extent required under Section 162(m) of the Code, any shares subject to Options or Stock Appreciation Rights that
are canceled or repriced.

 

Section
5.2 Stock Offered. The stock to be offered pursuant to the grant of an Award may be authorized but unissued Common Stock,
Common Stock purchased on the open market or Common Stock previously issued and outstanding and reacquired by the Company.

 

Section
5.3 Lock-Up Agreement Each Award Agreement which provides for the issuance of Common Stock, including but not limited to
the issuance of Common Stock upon the exercise of an Option, shall provide for a lock-up covenant by the Holder, to be effective
for a period not to exceed one year, upon the request of the Company or the Company’s principal underwriter in connection
with an underwritten public offering of the Common Stock.

 

    	 	 8	 

    	 	 	 

    

 

ARTICLE
VI

ELIGIBILITY FOR AWARDS; TERMINATION OF

EMPLOYMENT, DIRECTOR STATUS OR CONSULTANT STATUS

 

Section
6.1 Eligibility Awards made under the Plan may be granted solely to persons or entities who, at the time of grant, are
Employees, Directors or Consultants. An Award may be granted on more than one occasion to the same Employee, Director or Consultant,
and, subject to the limitations set forth in the Plan, such Award may include, a Non-Qualified Stock Option, a Restricted Stock
Award, an Unrestricted Stock Award, a Distribution Equivalent Right Award, a Performance Stock Award, a Performance Unit Award,
a Stock Appreciation Right, a Tandem Stock Appreciation Right, any combination thereof or, solely for Employees, an Incentive
Stock Option.

 

Section
6.2 Termination of Employment or Director Status. Except to the extent inconsistent with the terms of the applicable Award
Agreement and/or the provisions of Section 6.4, the following terms and conditions shall apply with respect to the termination
of a Holder’s employment with, or status as a Director of, the Company or an Affiliate, as applicable, for any reason, including,
without limitation, Total and Permanent Disability or death:

 

(a)
The Holder’s rights, if any, to exercise any then exercisable Non-Qualified Stock Options and/or Stock Appreciation Rights
shall terminate:

 

(1)
If such termination is for a reason other than the Holder’s Total and Permanent Disability or death, ninety (90) days after
the date of such termination of employment or after the date of such termination of Director status;

 

(2)
If such termination is on account of the Holder’s Total and Permanent Disability, one (1) year after the date of such termination
of employment or Director status; or

 

(3)
If such termination is on account of the Holder’s death, one (1) year after the date of the Holder’s death.

 

Upon
such applicable date the Holder (and such Holder’s estate, designated beneficiary or other legal representative) shall forfeit
any rights or interests in or with respect to any such Non-Qualified Stock Options and Stock Appreciation Rights.

 

    	 	 9	 

    	 	 	 

    

 

(b)
The Holder’s rights, if any, to exercise any then exercisable Incentive Stock Option shall terminate:

 

(1)
If such termination is for a reason other than the Holder’s Total and Permanent Disability or death, three (3) months after
the date of such termination of employment;

 

(2)
If such termination is on account of the Holder’s Total and Permanent Disability, one (1) year after the date of such termination
of employment; or

 

(3)
If such termination is on account of the Holder’s death, one (1) year after the date of the Holder’s death.

 

Upon
such applicable date the Holder (and such Holder’s estate, designated beneficiary or other legal representative) shall forfeit
any rights or interests in or with respect to any such Incentive Stock Options.

 

(c)
If a Holder’s employment with, or status as a Director of, the Company or an Affiliate, as applicable, terminates for any
reason prior to the actual or deemed satisfaction and/or lapse of the restrictions, vesting requirements, terms and conditions
applicable to a Restricted Stock Award and/or Restricted Stock Unit Award, such Restricted Stock and/or Restricted Stock Units
shall immediately be canceled, and the Holder (and such Holder’s estate, designated beneficiary or other legal representative)
shall forfeit any rights or interests in and with respect to any such Restricted Stock and/or Restricted Stock Units. The immediately
preceding sentence to the contrary notwithstanding, the Committee, in its sole discretion, may determine, prior to or within thirty
(30) days after the date of such termination of employment or Director status, that all or a portion of any such Holder’s
Restricted Stock and/or Restricted Stock Units shall not be so canceled and forfeited.

 

Section
6.3 Termination of Consultant Status. Except to the extent inconsistent with the terms of the applicable Award Agreement
and/or the provisions of Section 6.4, the following terms and conditions shall apply with respect to the termination of a Holder’s
status as a Consultant, for any reason:

 

(a)
The Holder’s rights, if any, to exercise any then exercisable Non-Qualified Stock Options and Stock Appreciation Rights
shall terminate:

 

(1)
If such termination is for a reason other than the Holder’s death, thirty (30) days after the date of such termination;
or

 

(2)
If such termination is on account of the Holder’s death, one (1) year after the date of the Holder’s death.

 

(b)
If the status of a Holder as a Consultant terminates for any reason prior to the actual or deemed satisfaction and/or lapse of
the Restrictions, vesting requirements, terms and conditions applicable to a Restricted Stock Award, and/or Restricted Stock Units
Award, such Restricted Stock and/or Restricted Stock Units shall immediately be canceled, and the Holder (and such Holder’s
estate, designated beneficiary or other legal representative) shall forfeit any rights or interests in and with respect to any
such Restricted Stock and/or Restricted Stock Units. The immediately preceding sentence to the contrary notwithstanding, the Committee,
in its sole discretion, may determine, prior to or within thirty (30) days after the date of such termination of such a Holder’s
status as a Consultant, that all or a portion of any such Holder’s Restricted Stock and/or Restricted Stock Units shall
not be so canceled and forfeited.

 

    	 	 10	 

    	 	 	 

    

 

Section
6.4 Special Termination Rule. Except to the extent inconsistent with the terms of the applicable Award Agreement, and notwithstanding
anything to the contrary contained in this Article VI, if a Holder’s employment with, or status as a Director of, the Company
or an Affiliate shall terminate, and if, within ninety (90) days of such termination, such Holder shall become a Consultant, such
Holder’s rights with respect to any Award or portion thereof granted thereto prior to the date of such termination may be
preserved, if and to the extent determined by the Committee in its sole discretion, as if such Holder had been a Consultant for
the entire period during which such Award or portion thereof had been outstanding. Should the Committee effect such determination
with respect to such Holder, for all purposes of the Plan, such Holder shall not be treated as if his or her employment or Director
status had terminated until such time as his or her Consultant status shall terminate, in which case his or her Award, as it may
have been reduced in connection with the Holder’s becoming a Consultant, shall be treated pursuant to the provisions of
Section 6.3; provided, however, that any such Award which is intended to be an Incentive Stock Option shall, upon
the Holder’s no longer being an Employee, automatically convert to a Non-Qualified Stock Option. Should a Holder’s
status as a Consultant terminate, and if, within ninety (90) days of such termination, such Holder shall become an Employee or
a Director, such Holder’s rights with respect to any Award or portion thereof granted thereto prior to the date of such
termination may be preserved, if and to the extent determined by the Committee in its sole discretion, as if such Holder had been
an Employee or a Director, as applicable, for the entire period during which such Award or portion thereof had been outstanding,
and, should the Committee effect such determination with respect to such Holder, for all purposes of the Plan, such Holder shall
not be treated as if his or her Consultant status had terminated until such time as his or her employment with the Company or
an Affiliate, or his or her Director status, as applicable, shall terminate, in which case his or her Award shall be treated pursuant
to the provisions of Section 6.2.

 

Section
6.5 Termination for Cause. Notwithstanding anything in this Article VI or elsewhere in the Plan to the contrary, and unless
a Holder’s Award Agreement specifically provides otherwise, should a Holder’s employment, Director status or engagement
as a Consultant with or for the Company or an Affiliate be terminated by the Company or Affiliate for Cause, all of such Holder’s
then outstanding Awards shall expire within thirty (30) days if an employee or ninety (90) days if a Director and be forfeited
in their entirety upon such termination.

 

    	 	 11	 

    	 	 	 

    

 

ARTICLE
VII

OPTIONS

 

Section
7.1 Option Period. The term of each Option shall be as specified in the Option Agreement; provided, however,
that except as set forth in Section 7.3, no Option shall be exercisable after the expiration of ten (10) years from the date of
its grant.

 

Section
7.2 Limitations on Exercise of Option. An Option shall be exercisable in whole or in such installments and at such times
as specified in the Option Agreement.

 

Section
7.3 Special Limitations on Incentive Stock Options. To the extent that the aggregate Fair Market Value (determined at the
time the respective Incentive Stock Option is granted) of Common Stock with respect to which Incentive Stock Options are exercisable
for the first time by an individual during any calendar year under all plans of the Company and any parent corporation or subsidiary
corporation thereof (both as defined in Section 424 of the Code) which provide for the grant of Incentive Stock Options exceeds
One Hundred Thousand Dollars ($100,000) (or such other individual limit as may be in effect under the Code on the date of grant),
the portion of such Incentive Stock Options that exceeds such threshold shall be treated as Non-Qualified Stock Options. The Committee
shall determine, in accordance with applicable provisions of the Code, Treasury Regulations and other administrative pronouncements,
which of a Holder’s Options, which were intended by the Committee to be Incentive Stock Options when granted to the Holder,
will not constitute Incentive Stock Options because of such limitation, and shall notify the Holder of such determination as soon
as practicable after such determination. No Incentive Stock Option shall be granted to an Employee if, at the time the Incentive
Stock Option is granted, such Employee is a Ten Percent Stockholder, unless (i) at the time such Incentive Stock Option is granted
the Option price is at least one hundred ten percent (110%) of the Fair Market Value of the Common Stock subject to the Incentive
Stock Option, and (ii) such Incentive Stock Option by its terms is not exercisable after the expiration of five (5) years from
the date of grant. No Incentive Stock Option shall be granted more than ten (10) years from the date on which the Plan is approved
by the Company’s stockholders. The designation by the Committee of an Option as an Incentive Stock Option shall not guarantee
the Holder that the Option will satisfy the applicable requirements for “incentive stock option” status under Section
422 of the Code.

 

Section
7.4 Option Agreement. Each Option shall be evidenced by an Option Agreement in such form and containing such provisions
not inconsistent with the provisions of the Plan as the Committee from time to time shall approve, including, but not limited
to, provisions intended to qualify an Option as an Incentive Stock Option. An Option Agreement may provide for the payment of
the Option price, in whole or in part, in cash or cash equivalents, by the delivery of a number of shares of Common Stock (plus
cash if necessary) that have been owned by the Holder for at least six (6) months and having a Fair Market Value equal to such
Option price, or such other forms or methods as the Committee may determine from time to time, in each case, subject to such rules
and regulations as may be adopted by the Committee. Each Option Agreement shall, solely to the extent inconsistent with the provisions
of Sections 6.2, 6.3, 6.4 and 6.5, as applicable, specify the effect of termination of the Holder’s employment, Director
status or Consultant status on the exercisability of the Option. Moreover, without limiting the generality of the foregoing, an
Option Agreement may provide for a “cashless exercise” of the Option, in whole or in part, by (a) establishing procedures
whereby the Holder, by a properly-executed written notice, directs (i) an immediate market sale or margin loan as to all or a
part of the shares of Common Stock to which he is entitled to receive upon exercise of the Option, pursuant to an extension of
credit by the Company to the Holder of the Option price, (ii) the delivery of the shares of Common Stock from the Company directly
to a brokerage firm and (iii) the delivery of the Option price from sale or margin loan proceeds from the brokerage firm directly
to the Company, or (b) reducing the number of shares of Common Stock to be issued upon exercise of the Option by the number of
such shares having an aggregate Fair Market Value equal to the Option price (or portion thereof to be so paid) as of the date
of the Option’s exercise. Each Option Agreement shall, solely to the extent inconsistent with the provisions of Sections
6.2, 6.3, 6.4 and 6.5, as applicable, specify the effect of the termination of the Holder’s employment, Director status
or Consultant status on the exercisability of the Option. An Option Agreement may also include provisions relating to (i) subject
to the provisions hereof, accelerated vesting of Options, including but not limited to upon the occurrence of a Change of Control,
(ii) tax matters (including provisions covering any applicable Employee wage withholding requirements and requiring additional
“gross-up” payments to Holders to meet any excise taxes or other additional income tax liability imposed as a result
of a payment made upon a Change of Control resulting from the operation of the Plan or of such Option Agreement) and (iii) any
other matters not inconsistent with the terms and provisions of the Plan that the Committee shall in its sole discretion determine.
The terms and conditions of the respective Option Agreements need not be identical.

 

    	 	 12	 

    	 	 	 

    

 

Section
7.5 Option Price and Payment. The price at which a share of Common Stock may be purchased upon exercise of an Option shall
be determined by the Committee; provided, however, that such Option price (i) shall not be less than the Fair Market
Value of a share of Common Stock on the date such Option is granted, and (ii) shall be subject to adjustment as provided in Article
XV. The Option or portion thereof may be exercised by delivery of an irrevocable notice of exercise to the Company. The Option
price for the Option or portion thereof shall be paid in full in the manner prescribed by the Committee as set forth in the Plan
and the applicable Option Agreement, which manner, with the consent of the Committee, may include the withholding of shares of
Common Stock otherwise issuable in connection with the exercise of the Option, for purposes of Section 7.4 (b). Separate stock
certificates shall be issued by the Company for those shares of Common Stock acquired pursuant to the exercise of an Incentive
Stock Option and for those shares of Common Stock acquired pursuant to the exercise of a Non-Qualified Stock Option.

 

Section
7.6 Stockholder Rights and Privileges. The Holder of an Option shall be entitled to all the privileges and rights of a
stockholder of the Company solely with respect to such shares of Common Stock as have been purchased under the Option and for
which certificates of stock have been registered in the Holder’s name.

 

Section
7.7 Options and Rights in Substitution for Stock Options Granted by Other Corporations. Options may be granted under the
Plan from time to time in substitution for stock options held by individuals employed by entities who become Employees as a result
of a merger or consolidation of the employing entity with the Company or any Affiliate, or the acquisition by the Company or an
Affiliate of the assets of the employing entity, or the acquisition by the Company or an Affiliate of stock of the employing entity
with the result that such employing entity becomes an Affiliate.

 

Section
7.8 Prohibition Against Repricing. Except to the extent (i) approved in advance by holders of a majority of the shares
of the Company entitled to vote generally in the election of directors, or (ii) as a result of any Change of Control or any adjustment
as provided in Article XV, the Committee shall not have the power or authority to reduce, whether through amendment or otherwise,
the exercise price under any outstanding Option or Stock Appreciation Right, or to grant any new Award or make any payment of
cash in substitution for or upon the cancellation of Options and/or Stock Appreciation Rights previously granted.

 

    	 	 13	 

    	 	 	 

    

 

ARTICLE
VIII

RESTRICTED STOCK AWARDS

 

Section
8.1 Restriction Period to be Established by Committee. At the time a Restricted Stock Award is made, the Committee shall
establish the Restriction Period applicable to such Award. Each Restricted Stock Award may have a different Restriction Period,
in the discretion of the Committee. The Restriction Period applicable to a particular Restricted Stock Award shall not be changed
except as permitted by Section 8.2.

 

Section
8.2 Other Terms and Conditions. Common Stock awarded pursuant to a Restricted Stock Award shall be represented by a stock
certificate registered in the name of the Holder of such Restricted Stock Award. If provided for under the Restricted Stock Award
Agreement, the Holder shall have the right to vote Common Stock subject thereto and to enjoy all other stockholder rights, including
the entitlement to receive dividends on the Common Stock during the Restriction Period, except that (i) the Holder shall not be
entitled to delivery of the stock certificate until the Restriction Period shall have expired, (ii) the Company shall retain custody
of the stock certificate during the Restriction Period (with a stock power endorsed by the Holder in blank), (iii) the Holder
may not sell, transfer, pledge, exchange, hypothecate or otherwise dispose of the Common Stock during the Restriction Period and
(iv) a breach of the terms and conditions established by the Committee pursuant to the Restricted Stock Award Agreement shall
cause a forfeiture of the Restricted Stock Award. At the time of such Award, the Committee may, in its sole discretion, prescribe
additional terms and conditions or restrictions relating to Restricted Stock Awards, including, but not limited to, rules pertaining
to the effect of termination of employment, Director status or Consultant status prior to expiration of the Restriction Period.
Such additional terms, conditions or restrictions shall, to the extent inconsistent with the provisions of Sections 6.2, 6.3 and
6.4, as applicable, be set forth in a Restricted Stock Award Agreement made in conjunction with the Award. Such Restricted Stock
Award Agreement may also include provisions relating to (i) subject to the provisions hereof, accelerated vesting of Awards, including
but not limited to accelerated vesting upon the occurrence of a Change of Control, (ii) tax matters (including provisions covering
any applicable Employee wage withholding requirements and requiring additional “gross-up” payments to Holders to meet
any excise taxes or other additional income tax liability imposed as a result of a payment made in connection with a “Change
of Control” resulting from the operation of the Plan or of such Restricted Stock Award Agreement) and (iii) any other matters
not inconsistent with the terms and provisions of the Plan that the Committee shall in its sole discretion determine. The terms
and conditions of the respective Restricted Stock Agreements need not be identical. All shares of Common Stock delivered to a
Holder as part of a Restricted Stock Award shall be delivered and reported by the Company or the Affiliate, as applicable, to
the Holder by no later than by the fifteenth (15th) day of the third (3rd) calendar month next following the end of the Company’s
fiscal year in which the Holder’s entitlement to such shares becomes vested.

 

Section
8.3 Payment for Restricted Stock. The Committee shall determine the amount and form of any payment from a Holder for Common
Stock received pursuant to a Restricted Stock Award, if any, provided that in the absence of such a determination, a Holder shall
not be required to make any payment for Common Stock received pursuant to a Restricted Stock Award, except to the extent otherwise
required by law.

 

Section
8.4 Restricted Stock Award Agreements. At the time any Award is made under this Article VIII, the Company and the Holder
shall enter into a Restricted Stock Award Agreement setting forth each of the matters contemplated hereby and such other matters
as the Committee may determine to be appropriate.

 

    	 	 14	 

    	 	 	 

    

 

ARTICLE
IX

UNRESTRICTED STOCK AWARDS

 

Pursuant
to the terms of the applicable Unrestricted Stock Award Agreement, a Holder may be awarded (or sold) shares of Common Stock which
are not subject to Restrictions, in consideration for past services rendered thereby to the Company or an Affiliate or for other
valid consideration.

 

ARTICLE
X

RESTRICTED STOCK UNIT AWARDS

 

Section
10.1 Terms and Conditions The Committee shall set forth in the applicable Restricted Stock Unit Award Agreement the individual
service-based vesting requirement which the Holder would be required to satisfy before the Holder would become entitled to payment
pursuant to Section 10.2 and the number of Units awarded to the Holder. Such payment shall be subject to a “substantial
risk of forfeiture” under Section 409A of the Code. At the time of such Award, the Committee may, in its sole discretion,
prescribe additional terms and conditions or restrictions relating to Restricted Stock Unit Awards, including, but not limited
to, rules pertaining to the effect of termination of employment, Director status or Consultant status prior to expiration of the
applicable vesting period. The terms and conditions of the respective Restricted Stock Unit Award Agreements need not be identical.

 

Section
10.2 Payments. The Holder of a Restricted Stock Unit shall be entitled to receive a cash payment equal to the Fair Market
Value of a share of Common Stock, or one (1) share of Common Stock, as determined in the sole discretion of the Committee and
as set forth in the Restricted Stock Unit Award Agreement, for each Restricted Stock Unit subject to such Restricted Stock Unit
Award, if the Holder satisfies the applicable vesting requirement. Such payment shall be made no later than by the fifteenth (15th)
day of the third (3rd) calendar month next following the end of the calendar year in which the Restricted Stock Unit first becomes
vested.

 

    	 	 15	 

    	 	 	 

    

 

ARTICLE
XI

PERFORMANCE UNIT AWARDS

 

Section
11.1 Terms and ConditionsThe Committee shall set forth in the applicable Performance Unit Award Agreement the performance
goals and objectives (and the period of time to which such goals and objectives shall apply) which the Holder and/or the Company
would be required to satisfy before the Holder would become entitled to payment pursuant to Section 10.2, the number of Units
awarded to the Holder and the dollar value assigned to each such Unit. Such payment shall be subject to a “substantial risk
of forfeiture” under Section 409A of the Code. At the time of such Award, the Committee may, in its sole discretion, prescribe
additional terms and conditions or restrictions relating to Performance Unit Awards, including, but not limited to, rules pertaining
to the effect of termination of employment, Director status or Consultant status prior to expiration of the applicable performance
period. The terms and conditions of the respective Performance Unit Award Agreements need not be identical.

 

Section
11.2 Payments. The Holder of a Performance Unit shall be entitled to receive a cash payment equal to the dollar value assigned
to such Unit under the applicable Performance Unit Award Agreement if the Holder and/or the Company satisfy (or partially satisfy,
if applicable under the applicable Performance Unit Award Agreement) the performance goals and objectives set forth in such Performance
Unit Award Agreement. If achieved, such payment shall be made not later than by the fifteenth (15th) day of the third (3rd) calendar
month next following the end of the Company’s fiscal year to which such performance goals and objectives relate.

 

ARTICLE
XII

PERFORMANCE SHARE AWARDS

 

Section
12.1 Terms and Conditions The Committee shall set forth in the applicable Performance Share Award Agreement the performance
goals and objectives (and the period of time to which such goals and objectives shall apply) which the Holder and/or the Company
would be required to satisfy before the Holder would become entitled to the receipt of shares of Common Stock pursuant to such
Holder’s Performance Share Award and the number of shares of Common Stock subject to such Performance Share Award. Such
payment shall be subject to a “substantial risk of forfeiture” under Section 409A of the Code and, if such goals and
objectives are achieved, the distribution of such Common Shares shall be made no later than by the fifteenth (15th) day of the
third (3rd) calendar month next following the end of the Company’s fiscal year to which such goals and objectives relate.
At the time of such Award, the Committee may, in its sole discretion, prescribe additional terms and conditions or restrictions
relating to Performance Share Awards, including, but not limited to, rules pertaining to the effect of termination of the Holder’s
employment, Director status or Consultant status prior to the expiration of the applicable performance period. The terms and conditions
of the respective Performance Share Award Agreements need not be identical.

 

Section
12.2 Stockholder Rights and Privileges The Holder of a Performance Share Award shall have no rights as a stockholder of
the Company until such time, if any, as the Holder actually receives shares of Common Stock pursuant to the Performance Share
Award.

 

    	 	 16	 

    	 	 	 

    

 

ARTICLE
XIII

DISTRIBUTION EQUIVALENT RIGHTS

 

Section
13.1 Terms and Conditions The Committee shall set forth in the applicable Distribution Equivalent Rights Award Agreement
the terms and conditions, if any, including whether the Holder is to receive credits currently in cash, is to have such credits
reinvested (at Fair Market Value determined as of the date of reinvestment) in additional shares of Common Stock or is to be entitled
to choose among such alternatives. Such receipt shall be subject to a “substantial risk of forfeiture” under Section
409A of the Code and, if such Award becomes vested, the distribution of such cash or shares of Common Stock shall be made no later
than by the fifteenth (15th) day of the third (3rd) calendar month next following the end of the Company’s fiscal year in
which the Holder’s interest in the Award vests. Distribution Equivalent Rights Awards may be settled in cash or in shares
of Common Stock, as set forth in the applicable Distribution Equivalent Rights Award Agreement. A Distribution Equivalent Rights
Award may, but need not be, awarded in tandem with another Award, whereby, if so awarded, such Distribution Equivalent Rights
Award shall expire, terminate or be forfeited by the Holder, as applicable, under the same conditions as under such other Award.

 

Section
13.2 Interest Equivalents. The Distribution Equivalent Rights Award Agreement for a Distribution Equivalent Rights Award
may provide for the crediting of interest on a Distribution Rights Award to be settled in cash at a future date (but in no event
later than by the fifteenth (15th) day of the third (3rd) calendar month next following the end of the Company’s fiscal
year in which such interest was credited), at a rate set forth in the applicable Distribution Equivalent Rights Award Agreement,
on the amount of cash payable thereunder.

 

ARTICLE
XIV

STOCK APPRECIATION RIGHTS

 

Section
14.1 Terms and Conditions The Committee shall set forth in the applicable Stock Appreciation Right Award Agreement the
terms and conditions of the Stock Appreciation Right, including (i) the base value (the “Base Value”) for the
Stock Appreciation Right, which for purposes of a Stock Appreciation Right which is not a Tandem Stock Appreciation Right, shall
be not less than the Fair Market Value of a share of the Common Stock on the date of grant of the Stock Appreciation Right, (ii)
the number of shares of Common Stock subject to the Stock Appreciation Right, (iii) the period during which the Stock Appreciation
Right may be exercised; provided, however, that no Stock Appreciation Right shall be exercisable after the expiration
of ten (10) years from the date of its grant, and (iv) any other special rules and/or requirements which the Committee imposes
upon the Stock Appreciation Right. Upon the exercise of some or all of a Stock Appreciation Right, the Holder shall receive a
payment from the Company, in cash or in the form of shares of Common Stock having an equivalent Fair Market Value or in a combination
of both, as determined in the sole discretion of the Committee, equal to the product of:

 

(a)
The excess of (i) the Fair Market Value of a share of the Common Stock on the date of exercise, over (ii) the Base Value, multiplied
by;

 

    	 	 17	 

    	 	 	 

    

 

(b)
The number of shares of Common Stock with respect to which the Stock Appreciation Right is exercised.

 

Section
14.2 Tandem Stock Appreciation Rights. If the Committee grants a Stock Appreciation Right which is intended to be a Tandem
Stock Appreciation Right, the Tandem Stock Appreciation Right shall be granted at the same time as the related Option, and the
following special rules shall apply:

 

(a)
The Base Value shall be equal to or greater than the per share exercise price under the related Option;

 

(b)
The Tandem Stock Appreciation Right may be exercised for all or part of the shares of Common Stock which are subject to the related
Option, but solely upon the surrender by the Holder of the Holder’s right to exercise the equivalent portion of the related
Option (and when a share of Common Stock is purchased under the related Option, an equivalent portion of the related Tandem Stock
Appreciation Right shall be cancelled);

 

(c)
The Tandem Stock Appreciation Right shall expire no later than the date of the expiration of the related Option;

 

(d)
The value of the payment with respect to the Tandem Stock Appreciation Right may be no more than one hundred percent (100%) of
the difference between the per share exercise price under the related Option and the Fair Market Value of the shares of Common
Stock subject to the related Option at the time the Tandem Stock Appreciation Right is exercised, multiplied by the number of
shares of Common Stock with respect to which the Tandem Stock Appreciation Right is exercised; and

 

(e)
The Tandem Stock Appreciation Right may be exercised solely when the Fair Market Value of a share of Common Stock subject to the
related Option exceeds the per share exercise price under the related Option.

 

ARTICLE
XV

RECAPITALIZATION OR REORGANIZATION

 

Section
15.1 Adjustments to Common Stock The shares with respect to which Awards may be granted under the Plan are shares of Common
Stock as presently constituted; provided, however, that if, and whenever, prior to the expiration or distribution
to the Holder of shares of Common Stock underlying an Award theretofore granted, the Company shall effect a subdivision or consolidation
of shares of Common Stock or the payment of a stock dividend on Common Stock without receipt of consideration by the Company,
the number of shares of Common Stock with respect to which such Award may thereafter be exercised or satisfied, as applicable,
(i) in the event of an increase in the number of outstanding shares, shall be proportionately increased, and the purchase price
per share of the Common Stock shall be proportionately reduced, and (ii) in the event of a reduction in the number of outstanding
shares, shall be proportionately reduced, and the purchase price per share of the Common Stock shall be proportionately increased.
Notwithstanding the foregoing or any other provision of this Article XV, any adjustment made with respect to an Award (x) which
is an Incentive Stock Option, shall comply with the requirements of Section 424(a) of the Code, and in no event shall any adjustment
be made which would render any Incentive Stock Option granted under the Plan to be other than an “incentive stock option”
for purposes of Section 422 of the Code, and (y) which is a Non-Qualified Stock Option, shall comply with the requirements of
Section 409A of the Code, and in no event shall any adjustment be made which would render any Non-Qualified Stock Option granted
under the Plan to become subject to Section 409A of the Code.

 

    	 	 18	 

    	 	 	 

    

 

Section
15.2 Recapitalization. If the Company recapitalizes or otherwise changes its capital structure, thereafter upon any exercise
or satisfaction, as applicable, of a previously granted Award, the Holder shall be entitled to receive (or entitled to purchase,
if applicable) under such Award, in lieu of the number of shares of Common Stock then covered by such Award, the number and class
of shares of stock and securities to which the Holder would have been entitled pursuant to the terms of the recapitalization if,
immediately prior to such recapitalization, the Holder had been the holder of record of the number of shares of Common Stock then
covered by such Award.

 

Section
15.3 Other Events In the event of changes to the outstanding Common Stock by reason of extraordinary cash dividend, reorganization,
mergers, consolidations, combinations, split-ups, spin-offs, exchanges or other relevant changes in capitalization occurring after
the date of the grant of any Award and not otherwise provided for under this Article XV, any outstanding Awards and any Award
Agreements evidencing such Awards shall be adjusted by the Board in its discretion in such manner as the Board shall deem equitable
or appropriate taking into consideration the applicable accounting and tax consequences, as to the number and price of shares
of Common Stock or other consideration subject to such Awards. In the event of any adjustment pursuant to Sections 15.1, 15.2
or this Section 15.3, the aggregate number of shares available under the Plan pursuant to Section 5.1 (and the Code Section 162(m)
limit set forth therein) may be appropriately adjusted by the Board, the determination of which shall be conclusive. In addition,
the Committee may make provision for a cash payment to a Participant or a person who has an outstanding Award. The number of shares
of Common Stock subject to any Award shall be rounded to the nearest whole number.

 

Section
15.4 Powers Not Affected The existence of the Plan and the Awards granted hereunder shall not affect in any way the right
or power of the Board or of the stockholders of the Company to make or authorize any adjustment, recapitalization, reorganization
or other change of the Company’s capital structure or business, any merger or consolidation of the Company, any issue of
debt or equity securities ahead of or affecting Common Stock or the rights thereof, the dissolution or liquidation of the Company
or any sale, lease, exchange or other disposition of all or any part of its assets or business or any other corporate act or proceeding.

 

Section
15.5 No Adjustment for Certain Awards. Except as hereinabove expressly provided, the issuance by the Company of shares
of stock of any class or securities convertible into shares of stock of any class, for cash, property, labor or services, upon
direct sale, upon the exercise of rights or warrants to subscribe therefor or upon conversion of shares or obligations of the
Company convertible into such shares or other securities, and in any case whether or not for fair value, shall not affect previously
granted Awards, and no adjustment by reason thereof shall be made with respect to the number of shares of Common Stock subject
to Awards theretofore granted or the purchase price per share, if applicable.

 

    	 	 19	 

    	 	 	 

    

 

ARTICLE
XVI

AMENDMENT AND TERMINATION OF PLAN

 

The
Plan shall continue in effect, unless sooner terminated pursuant to this Article XVI, until the tenth (10th) anniversary of the
date on which it is adopted by the Board (except as to Awards outstanding on that date). The Board in its discretion may terminate
the Plan at any time with respect to any shares for which Awards have not theretofore been granted; provided, however,
that the Plan’s termination shall not materially and adversely impair the rights of a Holder with respect to any Award theretofore
granted without the consent of the Holder. The Board shall have the right to alter or amend the Plan or any part hereof from time
to time; provided, however, that without the approval by a majority of the votes cast at a meeting of shareholders
at which a quorum representing a majority of the shares of the Company entitled to vote generally in the election of directors
is present in person or by proxy, no amendment or modification of the Plan may (i) materially increase the benefits accruing to
Holders, (ii) except as otherwise expressly provided in Article XV, materially increase the number of shares of Common Stock subject
to the Plan or the individual Award limitations specified in Article V, (iii) materially modify the requirements for participation
in the Plan, or (iv) amend, modify, terminate or suspend Section 7.8 (repricing prohibition) or this Article XVI. In addition,
no change in any Award theretofore granted may be made which would materially and adversely impair the rights of a Holder with
respect to such Award without the consent of the Holder (unless such change is required in order to cause the benefits under the
Plan to qualify as “performance-based” compensation within the meaning of Section 162(m) of the Code or to exempt
the Plan or any Award from Section 409A of the Code).

 

ARTICLE
XVII

SPECIAL RULES

 

Section
17.1 Right of First Refusal. Solely during such time that the Common Stock is not publicly traded and solely to the extent
that the applicable Award Agreement so provides, no Holder (or beneficiary of a Holder including but not limited to the Holder’s
estate) may sell or otherwise transfer (except for inter vivos transfers to Family Members) any Common Stock obtained thereby
pursuant to an Award without first (i) providing the Company with a written offer to sell the Common Stock to the Company on the
same terms as were offered to the Holder (or the Holder’s beneficiary) by a bona fide third party (a copy of which third
party offer shall be attached to the Holder’s or beneficiary’s offer to sell such Common Stock to the Company) for
a sales price and with other terms and conditions, in each case equal to those stated in the third party’s purchase offer,
and (ii) waiting thirty (30) days from the date of the Company’s receipt of such offer. If the Company shall accept the
Holder’s or beneficiary’s offer in writing within said thirty (30) day period, the Holder or beneficiary and the Company
shall promptly effect such transaction. If the Company does not provide a written acceptance of the Holder’s or beneficiary’s
offer within said thirty (30) day period, the Holder or beneficiary shall be entitled to accept such third party’s offer
and effect such transaction.

 

Section
17.2 Call Option. Solely during such time that the Common Stock is not publicly traded and solely to the extent that the
applicable Award Agreement so provides, upon the termination of (i) an Employee’s employment with the Company or an Affiliate,
(ii) a Director’s membership on the Board or on the board of directors of an Affiliate or (iii) a Consultant’s consulting
or advisory engagement by the Company or Affiliate, the Company shall have the right to purchase from such individual or from
such individual’s estate, for a period of ninety (90) days following the date of such termination, any Common Stock obtained
thereby pursuant to the exercise of a Stock Option hereunder for a purchase price equal to the Fair Market Value of such Stock
as of the date on which the Company provides written notice of its intent to exercise its call option hereunder to such individual
or to such individual’s estate; provided, however, that notwithstanding the foregoing, should the individual’s
employment, Board membership or consulting or advisory engagement be terminated by the Company for Cause, in lieu of Fair Market
Value, the purchase price shall equal the amount paid, if any, by such individual, to obtain such Stock.

 

    	 	 20	 

    	 	 	 

    

 

ARTICLE
XVIII

MISCELLANEOUS

 

Section
18.1 No Right to Award. Neither the adoption of the Plan by the Company nor any action of the Board or the Committee shall
be deemed to give an Employee, Director or Consultant any right to an Award except as may be evidenced by an Award Agreement duly
executed on behalf of the Company, and then solely to the extent and on the terms and conditions expressly set forth therein.

 

Section
18.2 No Rights Conferred. Nothing contained in the Plan shall (i) confer upon any Employee any right with respect to continuation
of employment with the Company or any Affiliate, (ii) interfere in any way with any right of the Company or any Affiliate to terminate
the employment of an Employee at any time, (iii) confer upon any Director any right with respect to continuation of such Director’s
membership on the Board, (iv) interfere in any way with any right of the Company or an Affiliate to terminate a Director’s
membership on the Board at any time, (v) confer upon any Consultant any right with respect to continuation of his or her consulting
engagement with the Company or any Affiliate, or (vi) interfere in any way with any right of the Company or an Affiliate to terminate
a Consultant’s consulting engagement with the Company or an Affiliate at any time.

 

Section
18.3 Other Laws; No Fractional Shares; Withholding. The Company shall not be obligated to issue any Common Stock pursuant
to any Award granted under the Plan at any time when the shares covered by such Award have not been registered under the Securities
Act of 1933 and under such other state and federal laws, rules or regulations as the Company or the Committee deems applicable
and, in the opinion of legal counsel of the Company, if there is no exemption from the registration requirements of such laws,
rules or regulations available for the issuance and sale of such shares of Common Stock. The Company shall not be obligated by
virtue of any provision of the Plan to recognize the exercise of any Award or to otherwise sell or issue shares of Common Stock
in violation of any such laws, rules or regulations, and any postponement of the exercise or settlement of any Award under this
provision shall not extend the term of such Award. Neither the Company nor its directors or officers shall have any obligation
or liability to a Holder with respect to any Award (or shares of Common Stock issuable thereunder) (i) that shall lapse because
of such postponement, or (ii) for any failure to comply with the requirements of any applicable law, rules or regulations, including
but not limited to any failure to comply with the requirements of Section 409A of the Code. No fractional shares of Common Stock
shall be delivered, nor shall any cash in lieu of fractional shares be paid. The Company shall have the right to deduct in cash
(whether under this Plan or otherwise) in connection with all Awards any taxes required by law to be withheld and to require any
payments required to enable it to satisfy its withholding obligations. In the case of any Award satisfied in the form of shares
of Common Stock, no shares shall be issued unless and until arrangements satisfactory to the Company shall have been made to satisfy
any tax withholding obligations applicable with respect to such Award. Subject to such terms and conditions as the Committee may
impose, the Company shall have the right to retain, or the Committee may, subject to such terms and conditions as it may establish
from time to time, permit Holders to elect to tender, Common Stock (including Common Stock issuable in respect of an Award) to
satisfy, in whole or in part, the amount required to be withheld.

 

    	 	 21	 

    	 	 	 

    

 

Section
18.4 No Restriction on Corporate Action. Nothing contained in the Plan shall be construed to prevent the Company or any
Affiliate from taking any corporate action which is deemed by the Company or such Affiliate to be appropriate or in its best interest,
whether or not such action would have an adverse effect on the Plan or any Award made under the Plan. No Employee, Director, Consultant,
beneficiary or other person shall have any claim against the Company or any Affiliate as a result of any such action.

 

Section
18.5 Restrictions on Transfer No Award under the Plan or any Award Agreement and no rights or interests herein or therein,
shall or may be assigned, transferred, sold, exchanged, encumbered, pledged or otherwise hypothecated or disposed of by a Holder
except (i) by will or by the laws of descent and distribution, or (ii) except for an Incentive Stock Option, by gift to any Family
Member of the Holder. An Award may be exercisable during the lifetime of the Holder only by such Holder or by the Holder’s
guardian or legal representative unless it has been transferred by gift to a Family Member of the Holder, in which case it shall
be exercisable solely by such transferee. Notwithstanding any such transfer, the Holder shall continue to be subject to the withholding
requirements provided for under Section 18.3 hereof.

 

Section
18.6 Beneficiary Designations. Each Holder may, from time to time, name a beneficiary or beneficiaries (who may be contingent
or successive beneficiaries) for purposes of receiving any amount which is payable in connection with an Award under the Plan
upon or subsequent to the Holder’s death. Each such beneficiary designation shall serve to revoke all prior beneficiary
designations, be in a form prescribed by the Company and be effective solely when filed by the Holder in writing with the Company
during the Holder’s lifetime. In the absence of any such written beneficiary designation, for purposes of the Plan, a Holder’s
beneficiary shall be the Holder’s estate.

 

Section
18.7 Rule 16b-3. It is intended that, at any time when the Common Stock is registered under Section 12 of the Exchange
Act, the Plan and any Award made to a person subject to Section 16 of the Exchange Act shall meet all of the requirements of Rule
16b-3. If any provision of the Plan or of any such Award would disqualify the Plan or such Award under, or would otherwise not
comply with the requirements of, Rule 16b-3, such provision or Award shall be construed or deemed to have been amended as necessary
to conform to the requirements of Rule 16b-3.

 

    	 	 22	 

    	 	 	 

    

 

Section
18.8 Section 162(m). It is intended that, at any time when the Common Stock is registered under Section 12 of the Exchange
Act, the Plan shall comply fully with and meet all the requirements of Section 162(m) of the Code so that Awards hereunder which
are made to Holders who are “covered employees” (as defined in Section 162(m) of the Code) shall constitute “performance-based”
compensation within the meaning of Section 162(m) of the Code. Any Performance Goal(s) applicable to Qualified Performance-Based
Awards shall be objective, shall be established not later than ninety (90) days after the beginning of any applicable Performance
Period (or at such other date as may be required or permitted for “performance-based” compensation under Section 162(m)
of the Code) and shall otherwise meet the requirements of Section 162(m) of the Code, including the requirement that the outcome
of the Performance Goal or Goals be substantially uncertain (as defined in the regulations under Section 162(m) of the Code) at
the time established. The Performance Criteria to be utilized under the Plan to establish Performance Goals shall consist of objective
tests based on one or more of the following: earnings or earnings per share, cash flow or cash flow per share, operating cash
flow or operating cash flow per share revenue growth, product revenue growth, financial return ratios (such as return on equity,
return on investment and/or return on assets), share price performance, stockholder return, equity and/or value, operating income,
operating margins, earnings before interest, taxes, depreciation and amortization, net income, pre- or post-tax income, economic
value added (or an equivalent metric), profit returns and margins, credit quality, sales growth, market share, working capital
levels, comparisons with various stock market indices, year-end cash, debt reduction, assets under management, operating efficiencies,
strategic partnerships or transactions (including co-development, co-marketing, profit-sharing, joint venture or other similar
arrangements), and/or financing and other capital raising transactions. Performance criteria may be established on a Company-wide
basis or with respect to one or more Company business units or divisions or subsidiaries; and either in absolute terms, relative
to the performance of one or more similarly situated companies, or relative to the performance of an index covering a peer group
of companies. When establishing Performance Goals for the applicable Performance Period, the Committee may exclude any or all
“extraordinary items” as determined under U.S. generally accepted accounting principles including, without limitation,
the charges or costs associated with restructurings of the Company, discontinued operations, other unusual or non-recurring items,
and the cumulative effects of accounting changes and as identified in the Company’s financial statements, notes to the Company’s
financial statements or management’s discussion and analysis of financial condition and results of operations contained
in the Company’s most recent annual report filed with the U.S. Securities and Exchange Commission pursuant to the Exchange
Act. Holders who are “covered employees” (as defined in Section 162(m) of the Code) shall be eligible to receive payment
under a Qualified Performance-Based Award which is subject to achievement of a Performance Goal or Goals only if the applicable
Performance Goal or Goals are achieved within the applicable Performance Period, as determined by the Committee. If any provision
of the Plan would disqualify the Plan or would not otherwise permit the Plan to comply with Section 162(m) as so intended, such
provision shall be construed or deemed amended to conform to the requirements or provisions of Section 162(m). The Committee may
postpone the exercising of Awards, the issuance or delivery of Common Stock under any Award or any action permitted under the
Plan to prevent the Company or any subsidiary from being denied a federal income tax deduction with respect to any Award other
than an Incentive Stock Option, provided that such deferral satisfies the requirements of Section 409A of the Code. For purposes
of the requirements of Treasury Regulation Section 1.162-27(e)(4)(i), the maximum amount of compensation that may be paid to any
Employee under the Plan for a calendar year shall be Five Hundred Thousand Dollars ($500,000).

 

    	 	 23	 

    	 	 	 

    

 

Section
18.9 Section 409A. Notwithstanding any other provision of the Plan, the Committee shall have no authority to issue an Award
under the Plan with terms and/or conditions which would cause such Award to constitute non-qualified “deferred compensation”
under Section 409A of the Code. Accordingly, by way of example but not limitation, no Option shall be granted under the Plan with
a per share exercise price which is less than the Fair Market Value of a share of Common Stock on the date of grant of the Option.
Notwithstanding anything herein to the contrary, no Award Agreement shall provide for any deferral feature with respect to an
Award which constitutes a deferral of compensation under Section 409A of the Code. The Plan and all Award Agreements are intended
to comply with the requirements of Section 409A of the Code (so as to be exempt therefrom), and shall be so interpreted and construed.

 

Section
18.10 Indemnification. Each person who is or shall have been a member of the Committee or of the Board shall be indemnified
and held harmless by the Company against and from any loss, cost, liability, or expense that may be imposed upon or reasonably
incurred thereby in connection with or resulting from any claim, action, suit, or proceeding to which such person may be made
a party or may be involved by reason of any action taken or failure to act under the Plan and against and from any and all amounts
paid thereby in settlement thereof, with the Company’s approval, or paid thereby in satisfaction of any judgment in any
such action, suit, or proceeding against such person; provided, however, that such person shall give the Company
an opportunity, at its own expense, to handle and defend the same before he or she undertakes to handle and defend it on his or
her own behalf. The foregoing right of indemnification shall not be exclusive and shall be independent of any other rights of
indemnification to which such persons may be entitled under the Company’s Articles of Incorporation or By-laws, by contract,
as a matter of law, or otherwise.

 

Section
18.11 Other Plans. No Award, payment or amount received hereunder shall be taken into account in computing an Employee’s
salary or compensation for the purposes of determining any benefits under any pension, retirement, life insurance or other benefit
plan of the Company or any Affiliate, unless such other plan specifically provides for the inclusion of such Award, payment or
amount received. Nothing in the Plan shall be construed to limit the right of the Company to establish other plans or to pay compensation
to its employees, in cash or property, in a manner which is not expressly authorized under the Plan.

 

Section
18.12 Limits of Liability. Any liability of the Company with respect to an Award shall be based solely upon the contractual
obligations created under the Plan and the Award Agreement. None of the Company, any member of the Board nor any member of the
Committee shall have any liability to any party for any action taken or not taken, in good faith, in connection with or under
the Plan.

 

Section
18.13 Governing Law. Except as otherwise provided herein, the Plan shall be construed in accordance with the laws of the
State of Delaware, without regard to principles of conflicts of law.

 

Section
18.14 Severability of Provisions. If any provision of the Plan is held invalid or unenforceable, such invalidity or unenforceability
shall not affect any other provision of the Plan, and the Plan shall be construed and enforced as if such invalid or unenforceable
provision had not been included in the Plan.

 

Section
18.15 No Funding. The Plan shall be unfunded. The Company shall not be required to establish any special or separate fund
or to make any other segregation of funds or assets to ensure the payment of any Award.

 

Section
18.16 Headings. Headings used throughout the Plan are for convenience only and shall not be given legal significance.

 

Section
18.17 Terms of Award Agreements. Each Award shall be evidenced by an Award Agreement, which Award Agreement, if it provides
for the issuance of Common Stock, shall require the Holder to enter into and be bound by the terms of the Company’s Stockholders’
Agreement, if any. The terms of the Award Agreements utilized under the Plan need not be the same.

 

    	 	 24Exhibit

Exhibit 10.1

SEARS OUTLET STORES, L.L.C.
AND
LIT-ACQUISITIONS, L.L.C.
AGREEMENT OF PURCHASE AND SALE
1980 West Avenue 140th
San Leandro, Alameda County, California

DATED:  May 19, 2016

THIS AGREEMENT (this “Agreement”) is made and entered into as of this 19th day of May, 2016 (the “Contract Date”), by and between SEARS OUTLET STORE, L.L.C., a Delaware limited liability company (“Seller”), and LIT-ACQUISITIONS, L.L.C., a Delaware limited liability company (“Purchaser”).
1.SALE.
Seller agrees to sell and convey to Purchaser, and Purchaser agrees to purchase from Seller, for the purchase price set forth below and on the terms and conditions set forth in this Agreement, the Project (as hereinafter defined), including that certain building (the “Building”), consisting of approximately 306,805 square feet and commonly known as 1980 West Avenue 140th in San Leandro, Alameda County, California.  For purposes of this Agreement, the term, “Project” shall be deemed to mean, on a collective basis:  (a) the parcel(s) of land described in Exhibit A attached hereto (the “Land”), together with all rights, easements and interests appurtenant thereto including, but not limited to, any streets or other public ways adjacent to said Land and any water or mineral rights owned by, or leased to, Seller; (b) all improvements located on the Land, including, but not limited to, the Building, and all other on-site structures, systems, and utilities associated with, and utilized by Seller in the ownership and operation of the Building (all such improvements being referred to herein as the “Improvements”); provided, however, that Purchaser acknowledges and agrees that the Project shall be subject to the Seller Lease (as defined in Section 11(b) of this Agreement); (c) all right, title and interest in and to that certain Lease dated as of August 29, 2011 (the “Anchor Lease”), by and between Seller, as successor-in-interest to Sears Roebuck and Co., and Anchor Distributing, Inc. (the “Tenant”), including any security deposits or prepaid rents thereunder; and (d) all right, title and interest in and to any intangible property associated with, and utilized by Seller in the ownership and operation of the Land or the Improvements, including without limitation any Service Contracts (as defined in Section 8(g) of this Agreement), to the extent Purchaser elects to assume the same prior to the expiration of the Inspection Period, and any licenses, permits, guaranties, warranties, indemnities and claims.

2.PURCHASE PRICE.
The total purchase price to be paid to Seller by Purchaser for the Project shall be Twenty-Seven Million Three Hundred Thousand and 00/100 Dollars ($27,300,000.00) (the “Purchase Price”).  The Purchase Price shall be paid to Seller at Closing, plus or minus prorations and other adjustments hereunder, by federal wire transfer of immediately available funds.
3.CLOSING.
The purchase and sale contemplated herein shall be consummated at a closing (“Closing”) to take place through an escrow with the Dallas (Texas) offices of Chicago Title Insurance Company (the “Title Company”), on the basis of a “New York-style” closing.  The Closing shall occur within ten (10) days after the Approval Date (as hereinafter defined), or at such other time as the parties may agree upon in writing (the “Closing Date”).  Provided that Seller’s closing documents have been delivered to the closing escrow prior to 11:00 a.m., Chicago, Illinois time, on the Closing Date, federally wired “immediately available” funds and all necessary closing documents executed by Purchaser shall be in the possession of the Title Company on or before 1:00 p.m., Chicago, Illinois time, on the Closing Date.  The Closing shall be effective as of 11:59:59 p.m. on the Closing Date.  Notwithstanding the foregoing, the risk of loss of all or any portion of the Project shall be borne by Seller up to and including the actual time of the Closing and wire transfer of the Purchase Price to Seller, and thereafter by Purchaser.
4.EARNEST MONEY.
(a)Escrowee.  On the Contract Date, the parties shall enter into an joint strict order escrow agreement (the “Escrow Agreement,” the escrow created thereby being referred to herein as the “Escrow”), designating the Title Company as the escrowee thereunder (“Escrowee”). The parties hereby authorize their respective attorneys to execute the Escrow Agreement and to make such amendments thereto as they shall deem necessary or convenient to close the transaction contemplated hereby.
(b)Earnest Money Deposit.  Within three (3) business days following the Contract Date, Purchaser shall deposit into the Escrow by wire transfer, in accordance with the terms of the Escrow Agreement, the sum of Two Million and 00/100 Dollars and 00/100 Dollars ($2,000,000.00) (“Earnest Money”).  The Earnest Money shall be invested by the Escrowee in an interest-bearing account with a FDIC-insured, national bank.
(c)Application at Closing.  At Closing, the Earnest Money shall be delivered to Seller and credited against the Purchase Price.  All interest (if any) earned on the Earnest Money shall be paid to Purchaser, except in the event of Purchaser’s breach of its obligations under this Agreement, whereupon the Earnest Money and all interest earned thereon shall be paid to Seller.  All Earnest Money shall be appropriately dealt with by the Escrowee so as to be delivered to Seller or Purchaser, as the case may be, as provided herein and as provided in the Escrow Agreement.
(d)Independent Consideration.  Notwithstanding anything in this Agreement to the contrary, One Hundred and 00/100 Dollars ($100.00) of the Earnest Money shall be non-refundable in all events, and shall be paid to Seller in the event this Agreement is terminated for any reason prior to Closing (the “Independent Consideration”).  The Independent Consideration shall be applicable to the Purchase Price at Closing.
5.SELLER’S DELIVERIES.
Seller shall, promptly after the Contract Date, deliver or make available to Purchaser the items listed on Exhibit B attached hereto (collectively, the “Property Documents”), to the extent in Seller’s possession or control.  The Property Documents have been and/or will be delivered or made available to Purchaser without representation or warranty (express or implied). Except for those deliveries required by the terms of this Agreement to be made by Seller subsequent to the Approval Date, Purchaser hereby acknowledges that, 

unless Purchaser elects to terminate this Agreement on or prior thereto, as of the Approval Date Seller shall be deemed to have made available to Purchaser all of the documents, contracts, information and records (including leases, operating statements and financial information, if any) that Purchaser deems necessary and/or appropriate to the transaction(s) contemplated under this Agreement.
6.INSPECTION PERIOD.
(a)Basic Project Inspection.  During the “Inspection Period” (which Inspection Period is defined to be the forty-five (45) day period from and after the Contract Date), Purchaser, its agents and representatives shall be entitled to conduct a “Basic Project Inspection,” which will include the rights to: (i) enter upon the Land and Improvements, on at least one business day’s notice to Seller (which notice may be given by telephone or electronic mail to Rohit Jacobs at the contact information set forth in Section 18 below), to perform inspections and tests of the Project, (ii) make investigations with regard to environmental and other legal requirements, and (iii) review the tenant leases and other contracts affecting the Premises, if any.  If Purchaser determines that the results of any inspection, test, examination or review do not meet Purchaser’s criteria, in its sole discretion, for the purchase, financing or operation of the Project in the manner contemplated by Purchaser, then Purchaser may terminate this Agreement by written notice to Seller (the “Termination Notice”), with a copy to Escrowee, given not later than the last day of the Inspection Period (the “Approval Date”).  Alternatively, if Purchaser is satisfied with the results of its review of the Project, Purchaser may elect to proceed to Closing by written notice to Seller (the “Approval Notice”), with a copy to Escrowee, given not later than the Approval Date.  If Purchaser timely delivers the Approval Notice to Seller on or prior to the Approval Date, Purchaser shall be automatically deemed to have forever waived its right to terminate this Agreement and the Project shall be deemed acceptable to Purchaser.  If, however, Purchaser timely delivers the Termination Notice, or if Purchaser fails to timely deliver the Approval Notice, this Agreement shall automatically terminate, the Earnest Money, together with all interest thereon, shall be returned to Purchaser and neither party shall have any further liability to the other hereunder, except as provided in Sections 6(c), 17 and 20 below.
(b)Environmental Assessment.  During the Inspection Period, Purchaser shall have the right to employ one or more environmental consultants or other professional(s) to perform a so-called “Phase I” environmental inspection and assessment (the “Assessment”) of the Project, and Seller acknowledges and consents to such Assessment. Seller shall reasonably cooperate with Purchaser and its environmental consultants (but without third party expense to Seller).  Purchaser shall not have the right to perform a Phase II or any other invasive testing without Seller’s prior written consent, in Seller’s reasonable discretion.  If requested by Seller, Purchaser shall deliver to Seller copies of all data and reports documenting the Assessment performed pursuant to this Agreement.
(c)Purchaser’s Undertaking.  Purchaser hereby covenants and agrees that it shall cause all studies, investigations and inspections (including, but not limited to, the Basic Project Inspection and Assessment), performed at the Project pursuant to this Section 6 to be performed in a manner that does not unreasonably disturb or disrupt Seller’s operations or business at the Project.  Further, in connection with Purchaser’s exercise of its rights under this Agreement, Purchaser hereby covenants and agrees to repair any damage that occurs to the Project, at Purchaser’s sole cost and expense, and to return the Project to substantially the same condition as existed immediately prior to the execution of this Agreement.  Prior to Purchaser entering the Property to conduct the inspections and tests described above, Purchaser shall cause its  agents and contractors to obtain and maintain the following insurance coverage and shall deliver to Seller evidence of the following insurance coverage: commercial general liability insurance from an insurer reasonably acceptable to Seller in the amount of not less than One Million and No/100 Dollars ($1,000,000.00) per occurrence, Two Million and No/100 Dollars ($2,000,000.00) general aggregate, for personal injury and property damage per occurrence, such policy to name Seller as an additional insured party, which insurance shall provide coverage against any claim for personal liability or property damage caused by Purchaser or its agents, employees or contractors in connection with such inspections and tests.  Purchaser hereby 

indemnifies, protects, defends and holds Seller harmless from and against any and all losses, damages, claims, causes of action, judgments, damages, costs and expenses that Seller suffers or incurs as a result of any damage caused at, to, in, or at the Project as a result of (i) any injury to persons or property damage caused by or resulting from the Basic Project Inspection, the Assessment or any other inspections, tests and/or assessments conducted by Purchaser, its agents, representatives or environmental consultants, or (ii) construction liens filed or asserted in connection with the Basic Project Inspection, the Assessment or any other inspections, tests and/or assessments conducted by Purchaser, its agents, representatives or environmental consultants; provided, however, that in no event shall Purchaser’s indemnification obligations hereunder be applicable to any loss, damage, claim, cause of action, judgment, damage, cost or expense incurred in connection with or arising from or out of (x) the acts or omissions of Seller or its partners, shareholders, officers, members, directors, agents or employees, or (y) any pre-existing condition at the Project, except to the extent the Basic Project Inspection, the Assessment or any other inspections, tests and/or assessments conducted by Purchaser, its agents, representatives or environmental consultants exacerbate such pre-existing conditions.  Purchaser’s undertakings pursuant to this Section 6(c) shall indefinitely survive the Closing or termination of this Agreement.
(d)Confidentiality.  Each party agrees to maintain in confidence, the information contained in this Agreement or pertaining to the sale contemplated hereby and the information and data furnished or made available by Seller to Purchaser, its agents and representatives in connection with Purchaser’s investigation of the Project and the transactions contemplated by the Agreement; provided, however, that each party, its agents and representatives may disclose such information and data (a) to such party’s accountants, attorneys, prospective lenders, investment bankers, underwriters, ratings agencies, partners, consultants and other advisors in connection with the transactions contemplated by this Agreement (collectively, the “Representatives”) to the extent that such Representatives reasonably need to know such information and data in order to assist, and perform services on behalf of, Seller or Purchaser; (b) to the extent required by any applicable statute, law, regulation or governmental authority; and (c) in connection with any litigation that may arise between the parties in connection with the transactions contemplated by this Agreement.  Notwithstanding the foregoing restriction, the parties acknowledge that Seller will be filing an 8-K disclosing the Agreement upon its execution.  Additionally, unless otherwise required by applicable law, neither Purchaser nor Seller shall issue a press release or otherwise make any disclosure to the media, whether before or after Closing, related to the existence or terms of this Agreement or the transactions contemplated hereby without the prior written consent of the other party, which prohibition shall survive Closing or the earlier termination of this Agreement.
7.TITLE AND SURVEY MATTERS.
(a)Conveyance of Title.  At Closing, Seller agrees to deliver to Purchaser a grant deed (the “Deed”), in recordable form reasonably acceptable to Seller, Purchaser and the Title Company, conveying the Project to Purchaser, warranting only that neither Seller nor any person or entity claiming by, through or under Seller has sold or encumbered the Project during Seller’s period of ownership, and subject to the following items (the “Permitted Exceptions”):  (1) taxes not yet due and payable; (2) those matters that may be specifically approved, in writing, by Purchaser or deemed accepted by Purchaser pursuant to subsection (d) of this Section 7; (3) the rights of Seller under the Seller Lease (as defined in Section 11(b) of this Agreement); and (4) matters arising out of any act of Purchaser or its agents, employees or representatives.
(b)Title Commitment.  As soon as practicable after the Contract Date, Purchaser shall obtain and deliver to Seller a commitment, issued by the Title Company, for an ALTA owner’s title insurance policy (the “Title Policy”), in the full amount of the Purchase Price, showing fee simple title to the Project in Seller, together with copies of all recorded documents evidencing title exceptions raised in “Schedule B” of such title commitment.
(c)Survey.  Within thirty (30) days following the Contract Date, Purchaser shall have the right to obtain an updated survey, certified by the surveyor as having been prepared in accordance with the 

most currently available minimum detail and classification requirements of ALTA/ACSM (the “Updated Survey”).  The cost of any Updated Survey shall be paid by Purchaser.  The Updated Survey will be provided to Seller.
(d)Defects and Cure.  The items described in subsection (b) and (c) of this Section 7 are collectively referred to as “Title Evidence;” provided, however, if Purchaser does not obtain the Updated Survey within thirty (30) days following the Contract Date, then the “Title Evidence” shall not include the Updated Survey.  If the Title Evidence discloses any matters to which Purchaser shall object (the “Defects”), Purchaser shall notify Seller thereof (the “Defect Notice”), in writing, within ten (10) days following the receipt by Purchaser of the Title Evidence and thereafter Seller shall have the right (but not the obligation) to cure and remove, or obtain title insurance for, such Defects prior to Closing.  Within ten (10) business days after Seller’s receipt of the Defect Notice, Seller shall notify Purchaser (“Seller’s Response Notice”) as to those Defect(s), if any, that Seller shall attempt to cure or obtain title insurance for prior to Closing, if any.  If Seller fails to deliver such Seller’s Response Notice to Purchaser within ten (10) days, Seller shall be deemed to have notified Purchaser that Seller shall not attempt to cure or obtain title insurance for any Defect(s) raised in the Defect Notice.  If Seller notifies Purchaser (or is deemed to notify Purchaser) that it will not attempt to cure or obtain title insurance for any or all Defect(s), then Purchaser may (1) terminate this Agreement by written notice to Seller given within five (5) days after Purchaser receives (or is deemed to receive) Seller’s Response Notice, but in no event later than the Approval Date, in which event the Earnest Money, together with all interest earned thereon, shall be returned to Purchaser and neither party shall have any further liability to the other hereunder, except as provided in Sections 6(c), 17 and 20 below; or (2) proceed to close with no reduction in or offset against the Purchase Price, and thereafter Purchaser shall be deemed to have accepted such Defect(s) as Permitted Exceptions, and Purchaser shall be deemed to automatically and forever waive any and all claims and liabilities against Seller with respect to such Defect(s).  To the extent that Purchaser fails to timely and properly notify Seller (pursuant to this Section 7) of any such Defect(s), Purchaser shall be deemed to have accepted the same and to automatically and forever waive its right to terminate this Agreement pursuant to this Section 7(d) and such Defect(s) shall be deemed Permitted Exceptions for all purposes hereunder.  Notwithstanding the foregoing, in no event shall any mortgages, deeds of trust or other monetary liens encumbering the Project, each created by, through or under Seller, other than inchoate liens for non-delinquent taxes (“Monetary Liens”), constitute Permitted Exceptions, regardless of whether or not Purchaser delivers a Defect Notice with respect thereto, and Seller shall be obligated to cure any such Monetary Liens at or prior to Closing (with Seller being permitted to apply the Purchase Price at Closing in order to effect such cure).  Further notwithstanding the foregoing, in the event any new Defects are disclosed by any updated Title Evidence first received by Purchaser after the Approval Date, Purchaser shall have the right to send a Defect Notice with respect thereto, and the procedures of this Section 7(d) shall otherwise apply, except that (x) Purchaser must deliver the Defect Notice (if at all) within two (2) business days after receipt of the applicable updated Title Evidence, (y) Seller must send the Seller’s Response Notice (if at all) within two (2) business days after receipt of the applicable Defect Notice, and (z) Purchaser must terminate this Agreement (if at all) within one (1) business day after receipt of the applicable Seller’s Response Notice, but in no event later than the Closing Date.
8.SELLER’S REPRESENTATIONS.
Effective as of the execution of this Agreement, Seller represents, warrants and covenants to Purchaser as follows, which representations, warranties and covenants shall survive the Closing for nine (9) months, and shall be true and correct in all material respects as of Closing as a condition to the obligations of Purchaser to consummate the Closing hereunder:
(a)Authority.  Seller is a limited liability company duly formed, validly existing and in good standing in the State of Delaware, and is qualified to do business in the State of California.  The execution and delivery of this Agreement by Seller, and the performance of this Agreement by Seller, have been duly authorized by Seller, and this Agreement is binding on Seller and is enforceable 

against Seller in accordance with its terms.  No consent of any creditor, investor, judicial or administrative body, governmental authority, or other governmental body or agency, or other party to such execution, delivery and performance by Seller is required.
(b)Litigation.  Seller has not received any written notice of any pending or, to Seller’s knowledge, threatened judicial, municipal or administrative proceedings materially affecting the Project, or in which Seller is a party to by reason of Seller’s ownership of all or any part of the Project.
(c)Leases. There are no leases or other agreements to occupy all or any portion of the Project, except the Anchor Lease and the Seller Lease (as defined in Section 11(b) of this Agreement) to be entered into at Closing.  Seller shall not enter into any new leases for the Project prior to the Closing, or renew, otherwise modify or terminate any existing leases, without the prior written consent of Purchaser to such new, renewed, modified or terminated leases, which consent may be given or withheld in Purchaser’s sole and absolute discretion.
(d)United States Person.  Seller is a “United States Person” within the meaning of Section 1445(f)(3) of the Internal Revenue Code of 1986, as amended, and shall execute and deliver an “Entity Transferor” certification at Closing.
(e)Condemnation.  Seller has no actual knowledge of a pending condemnation or other governmental taking proceedings affecting all or any part of the Project.
(f)1031 Exchange.  Seller recognizes and understands that this transaction may be part of a contemplated “like kind” exchange for Purchaser under §1031 of the Internal Revenue Code (the “Purchaser’s Exchange”).  As such, Seller agrees to cooperate with Purchaser in effectuating the Purchaser’s Exchange, which cooperation may include the execution of documents, and the taking of other reasonable action, as is reasonably necessary, in the opinion of Purchaser, to accomplish the Purchaser’s Exchange; provided, however that Seller shall not be required to assume any additional third party expense or liability in connection with, or as part of its cooperation with, the Purchaser’s Exchange, nor shall Seller be required to extend the Closing for the purposes of accommodating the Purchaser’s Exchange.  The covenant contained in this Section 8(f) shall survive the Closing and shall not be merged into any instrument of conveyance delivered at Closing.
(g)Service Contracts.  Attached hereto as Exhibit C is a complete list of the service, maintenance, and operations contracts with respect to the Project (the “Service Contracts”).  Seller shall not enter into any new Service Contracts for the Project prior to the Closing, or renew any existing Service Contracts, without the prior written consent of Purchaser to such new or renewed Service Contract, which consent shall not be unreasonably withheld.
(h)Compliance with Laws.  Seller has not received written notice that the Project violates any laws or legal requirements (including zoning ordinances) applicable thereto, other than violations that have been cured prior to the Contract Date.
(i)No Conflict.  To Seller’s knowledge, the execution and delivery of, and consummation of the transactions contemplated by this Agreement is not prohibited by, and will not conflict with, constitute grounds for termination of, or result in the breach of any of the agreements or instruments to which Seller is now party or by which it is bound, or to Seller’s knowledge, any order, rule or regulation of any court or other governmental agency or official.
(j)Prohibited Persons and Transactions.  Seller is currently in compliance with and shall at all times during the term of this Agreement (including any extension hereof) remain in compliance with the regulations of the Office of Foreign Assets Control (“OFAC”) of the Department of the Treasury (including those named on OFAC’s Specially Designated Nationals and Blocked Persons List) and any statute, executive order (including the September 24, 2001 Executive Order Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or Support Terrorism), or other governmental action relating thereto.
(k)No Marketing.  Seller shall not market the Project, or any portion thereof, for sale during the pendency of this Agreement.

All references in this Agreement to “Seller’s knowledge,” “Seller’s actual knowledge” or words of similar import shall refer only to the actual knowledge of Rohit Jacob, without any duty of investigation or inquiry, and, notwithstanding any fact or circumstance to the contrary, shall not be construed to refer to the knowledge of any other person or entity.
No claim for a breach of any representation, warranty or covenant of the Seller shall be actionable or payable unless (a) the breach in question results from, or is based on, a condition, state of facts or other matter which  was not disclosed to, or known by, Purchaser prior to Closing, (b) the valid claims for all such  breaches collectively aggregate more than Seventy-Five Thousand and No/100 Dollars ($75,000.00), in which event the full amount of such claims shall be actionable, subject however, to the Cap (as hereinafter defined), and (c) written notice containing a description of the specific nature of such breach shall have been delivered by Purchaser to Seller prior to the expiration of said nine month survival period, and an action with respect to such breach(es) shall have been commenced by Purchaser against Seller within sixty (60) days after the expiration of the survival period provided for above in this Section 8. Notwithstanding anything contained herein to the contrary, the maximum  amount that Purchaser shall be entitled to collect from Seller in connection with all suits, litigation or administrative proceedings resulting from all breaches by Seller of any representation or warranty of  Seller and any indemnification obligation of Seller to Purchaser shall in no event exceed Seven Hundred Fifty Thousand Dollars ($750,000.00) in the aggregate (the “Cap”).  If, prior to Closing, Seller discloses to  Purchaser, or Purchaser discovers or has knowledge of, any misrepresentation of, or inaccuracy with respect to, any of the representations, warranties or covenants from Seller, then such representations, warranties, and covenants shall be deemed modified to reflect such matters and Seller shall have no liability for such matters, but in such event Purchaser may either (i) upon written notice to Seller delivered on or prior to the Closing, terminate this Agreement, whereupon the Earnest Money shall be returned to Purchaser and  neither party shall have any further rights or obligations hereunder except as expressly provided herein or (ii) close the transaction contemplated hereunder notwithstanding such misrepresentations or inaccuracies, thereby waiving any and all claims for the breach of the applicable representation, warranty or covenant. If Purchaser fails to timely deliver the written notice described in subclause (i) in the  previous sentence, then Purchaser shall be deemed to have elected to proceed under subclause (ii) in the previous sentence. Purchaser shall be deemed to have knowledge of any information contained in  any reports disclosed (in writing) to or obtained by Purchaser relating to all or any portion of the Property. The provisions of this Section 8 shall survive the Closing of this Agreement.
9.PURCHASER’S COVENANTS AND REPRESENTATIONS.
Effective as of the execution of this Agreement, Purchaser hereby represents, warrants and covenants with Seller as follows, which representations, warranties and covenants shall survive the Closing for nine (9) months, and shall be true and correct in all material respects as of Closing as a condition to Seller’s obligations to consummate the Closing hereunder:
(a)1031 Exchange.  Purchaser recognizes and understands that this transaction may be part of a contemplated “like kind” exchange for Seller under §1031 of the Internal Revenue Code (the “Seller’s Exchange”).  As such, Purchaser agrees to cooperate with Seller in effectuating the Seller’s Exchange, which cooperation may include the execution of documents, and the taking of other reasonable action, as is reasonably necessary, in the opinion of Seller, to accomplish the Seller’s Exchange; provided, however that Purchaser shall not be required to assume any additional third party expense or liability in connection with, or as part of its cooperation with, the Seller’s Exchange, nor shall Purchaser be required to extend the Closing for the purposes of accommodating the Seller’s Exchange.  The covenant contained in this Section 9(a) shall survive the Closing and shall not be merged into any instrument of conveyance delivered at Closing.

(b)Authority.  The execution and delivery of this Agreement by Purchaser, and the performance of this Agreement by Purchaser, have been duly authorized by Purchaser, and this Agreement is binding on Purchaser and enforceable against Purchaser in accordance with its terms.  No consent of any creditor, investor, judicial or administrative body, governmental authority, or other governmental body or agency, or other party to such execution, delivery and performance by Purchaser is required.
(c)No Conflict.  To Purchaser’s knowledge, the execution and delivery of, and consummation of the transactions contemplated by this Agreement is not prohibited by, and will not conflict with, constitute grounds for termination of, or result in the breach of any of the agreements or instruments to which Purchaser is now party or by which it is bound, or to Purchaser’s knowledge, any order, rule or regulation of any court or other governmental agency or official.
(d)Prohibited Persons and Transactions.  Purchaser is currently in compliance with and shall at all times during the term of this Agreement (including any extension hereof) remain in compliance with the regulations of the OFAC of the Department of the Treasury (including those named on OFAC’s Specially Designated Nationals and Blocked Persons List) and any statute, executive order (including the September 24, 2001 Executive Order Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or Support Terrorism), or other governmental action relating thereto.
10.PROJECT SOLD “AS IS”.
(a)Except as is otherwise expressly provided in this Agreement or in the documents and instruments executed and delivered by Seller at Closing (the “Closing Documents”), Seller hereby specifically disclaims any warranty (oral or written) concerning (i) the nature and condition of the Project and the suitability thereof for any and all activities and uses that Purchaser may elect to conduct thereon, (ii) the manner, construction, condition and state of repair or lack of repair of any improvements located thereon, (iii) the nature and extent of any right-of-way, lien, encumbrance, license, reservation, condition or otherwise, (iv) the compliance of the Project or its operation with any laws, rules, ordinances, or regulations of any government or other body, it being specifically understood that Purchaser shall have full opportunity, during the Inspection Period, to determine for itself the condition of the Project; and (v) any other matter whatsoever except as expressly set forth in this Agreement or in the Closing Documents.  Except as is otherwise expressly provided in this Agreement or in the Closing Documents, the sale of the Project as provided for herein is made on a strictly “AS IS” “WHERE IS” basis as of the Closing Date.  Purchaser expressly acknowledges that, in consideration of the agreements of Seller herein, SELLER MAKES NO WARRANTY OR REPRESENTATION, EXPRESS OR IMPLIED, OR ARISING BY OPERATION OF LAW, INCLUDING, BUT IN NO WAY LIMITED TO, ANY WARRANTY OF QUANTITY, QUALITY, CONDITION, HABITABILITY, MERCHANTABILITY, SUITABILITY OR FITNESS FOR A PARTICULAR PURPOSE OF THE PROJECT, ANY IMPROVEMENTS LOCATED THEREON OR ANY SOIL CONDITIONS RELATED THERETO.
(b)PURCHASER SPECIFICALLY ACKNOWLEDGES THAT PURCHASER IS NOT RELYING ON (AND SELLER HEREBY DISCLAIMS AND RENOUNCES) ANY REPRESENTATIONS OR WARRANTIES MADE BY OR ON BEHALF OF SELLER OF ANY KIND OR NATURE WHATSOEVER, EXCEPT AS IS OTHERWISE EXPRESSLY PROVIDED IN THIS AGREEMENT OR IN THE CLOSING DOCUMENTS.  FURTHER, EXCEPT FOR SELLER’S EXPRESS REPRESENTATIONS, WARRANTIES, AND INDEMNITIES SET FORTH IN THIS AGREEMENT OR THE CLOSING DOCUMENTS, BY CONSUMMATING THE CLOSING, PURCHASER, FOR PURCHASER AND PURCHASER’S SUCCESSORS AND ASSIGNS, SHALL BE DEEMED TO HAVE RELEASED (AND SHALL RELEASE) SELLER FROM AND SHALL BE DEEMED TO HAVE WAIVED (AND SHALL WAIVE) ANY AND ALL CLAIMS AND LIABILITIES AGAINST SELLER FOR, RELATED TO, OR IN CONNECTION WITH, ANY ENVIRONMENTAL CONDITION AT THE PROJECT (OR THE PRESENCE OF ANY MATTER OR SUBSTANCE RELATING TO THE ENVIRONMENTAL CONDITION OF THE PROJECT), INCLUDING, BUT NOT LIMITED TO, CLAIMS AND/OR LIABILITIES RELATING TO (IN ANY MANNER 

WHATSOEVER) ANY HAZARDOUS, TOXIC OR DANGEROUS MATERIALS OR SUBSTANCES LOCATED IN, AT, ABOUT OR UNDER THE PROJECT, OR FOR ANY AND ALL CLAIMS OR CAUSES OF ACTION (ACTUAL OR THREATENED) BASED UPON, IN CONNECTION WITH OR ARISING OUT OF CERCLA (THE COMPREHENSIVE ENVIRONMENTAL RESPONSE, COMPENSATION AND LIABILITY ACT OF 1980, 42 U.S.C. ‘9601 ET SEQ., AS AMENDED BY THE SUPERFUND AMENDMENT AND REAUTHORIZATION ACT OF 1986, AND AS MAY BE FURTHER AMENDED FROM TIME TO TIME), THE RESOURCE CONSERVATION AND RECOVERY ACT OF 1976, 42 U.S.C. ‘6901 ET SEQ., OR ANY OTHER CLAIM OR CAUSE OF ACTION (INCLUDING ANY FEDERAL OR STATE BASED STATUTORY, REGULATORY OR COMMON LAW CAUSE OF ACTION) RELATED TO ENVIRONMENTAL MATTERS OR LIABILITY WITH RESPECT TO OR AFFECTING THE PROJECT.
(c)Seller and Purchaser acknowledge and agree that the provisions contained in this Section 10 were a material factor in Seller’s acceptance of the Purchase Price and that Seller was unwilling to sell the Project to Purchaser unless Seller was released as expressly set forth above.

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Purchaser’s Initials
11.CLOSING DELIVERIES.
At Closing (or such other times as may be specified below), Seller and/or Purchaser, as appropriate, shall deliver or cause to be delivered the following:
(a)Deed.  The Deed, executed by Seller, in recordable form reasonably acceptable to Seller, Purchaser and the Title Company, conveying the Project to Purchaser, warranting only that neither Seller nor any person or entity claiming by, through or under Seller has sold or encumbered the Project during Seller’s period of ownership, subject to the Permitted Exceptions.
(b)Seller Lease.  On or before the expiration of the Inspection Period, Purchaser, as landlord, and Seller or its assignee or designee, as tenant, acknowledge and agree to use commercially reasonably efforts to agree to a form of lease for a portion of the Building consisting of approximately 34,458 square feet (the “Seller Lease”), which Seller Lease shall be entered into by Purchaser and Seller (or its assignee or designee) at Closing.  If Seller and Purchaser, notwithstanding their commercially reasonable efforts, fail to agree upon the final terms of the Seller Lease during the Inspection Period, then this Agreement shall automatically terminate, in which event the Earnest Money, together with all interest earned thereon, shall be returned to Purchaser and neither party shall have any further liability to the other hereunder, except as provided in Sections 6(c), 17 and 20 below The Seller Lease shall include the following terms and conditions: (i) the Seller Lease shall be for a term of five (5) years from and after the Closing Date (the “Seller Lease Term”); (ii) during the Seller Lease Term, Seller shall pay rent to Landlord equal to $21,708 per month NNN, with 3% annual increases; (iii) Seller shall have the right to extend the Seller Lease Term for one (1) additional period of five (5) years (an “Extension”) at fair market rental rates, which shall be effective upon Seller giving one hundred eighty (180) days written notice to Purchaser prior to the expiration of the Seller Lease Term or the then applicable Extension; (iv) a shorter lease through December 31, 2016, terminable on 30-days’ prior written notice at any time, for only the warehouse portion of the Building, which shall be on the same terms as the remainder of the Seller Lease except the rental rate for the warehouse portion of the Building will be: (x) $0.30 psf per month (gross) from the commencement of the Seller Lease through October 31, 2016, (y) $0.45 psf per month (gross) from November 1, 2016 through November 30, 2016, and (z) $0.60 psf per month (gross) from December 1, 2016 through December 31, 2016; (v) other commercially reasonable terms and conditions as mutually agreed to by Seller and Purchaser; and (vi) subject in each instance to applicable legal requirements, Landlord to complete the following tenant improvements 

as Landlord’s sole cost and expense, which tenant improvements shall be further defined and clarified as part of Purchaser’s and Seller’s commercially reasonable negotiations during the Inspection Period:  
            A.  Within the earlier of (i) one year following Closing and (ii) thirty (30) days following completion of the roof repairs Purchase intends to complete following the Closing, demise the new retail premises and construct new restrooms within the new retail premises; provided, however, pending the demising and completion of the work within the new premises, Seller shall be entitled to occupy the full existing retail space without additional charge;
B.  Within one hundred eighty (180) days following the Closing, (i) demolition and removal of the concrete structure in front of the retail portion of the Building (adjacent to the rail spur); (ii) removal of fencing for conversion to Tenant parking; and (iii) construction of new docks as reasonably determined by Tenant as necessary for Tenant’s operations; provided, however, at all times during the Lease not less than sixty (60) parking spaces shall be made available for use by Seller and its invitees.
C.  In connection with, and at the time of, demising the new retail premises, completion of new façade and signage at the entrance to the new retail premises, with signage to be provided by Seller.
D.  Within one hundred eighty (180) days following the Closing, install new monument sign with Tenant in top panel space, per agreed upon specifications and municipal requirements.
(c)Assignment of Intangible Property.  An assignment of the intangible property (including all Service Contracts that Purchaser has elected to assume prior to the expiration of the Inspection Period), in a form reasonably acceptable to Seller and Purchaser, with (i) the agreement of Seller, as assignor, to indemnify, defend and hold Purchaser, as assignee, harmless from and against any and all claims, damages, costs, and expenses (including, but not limited to, reasonable attorneys’ fees) arising from unperformed obligations of Seller under the applicable Service Contracts required to have been performed prior to Closing and (ii) the agreement of Purchaser to indemnify, defend and hold Seller harmless from and against any and all claims, damages, costs and expenses (including, but not limited to, reasonable attorneys’ fees) arising from liabilities and obligations of Purchaser under the applicable Service Contracts first accruing or required to be performed after the Closing.
(d)Assignment of Anchor Lease.  An assignment of the Anchor Lease, in a form reasonably acceptable to Seller and Purchaser, with (i) the agreement of Seller, as assignor, to indemnify, defend and hold Purchaser, as assignee, harmless from and against any and all claims, damages, costs, and expenses (including, but not limited to, reasonable attorneys’ fees) arising from unperformed obligations of Seller under the Anchor Lease required to have been performed prior to Closing and (ii) the agreement of Purchaser to indemnify, defend and hold Seller harmless from and against any and all claims, damages, costs and expenses (including, but not limited to, reasonable attorneys’ fees) arising from liabilities and obligations of Purchaser under the Anchor Lease first accruing or required to be performed after the Closing.
(e)Notice to Tenant.  Notice to Tenant under the Anchor Lease, notifying them of the sale of the Property and directing them to pay all future rent as Purchaser may direct. 
(f)Estoppel Certificate.  The Estoppel Certificate (as defined in Section 22 below).
(g)Keys.  Keys to all locks located in the Project.
(h)Affidavit of Title.  An Affidavit of Title executed by Seller, in a form reasonably acceptable to Seller and the Title Company.
(i)Title Policy.  The Title Policy (or a “marked-up” commitment therefor, unconditionally binding the Title Company to issue the Title Policy) issued by the Title Company, dated as of the date of the recordation of the Deed in the amount of the Purchase Price.
(j)Closing Statement.  A closing statement conforming to the proration and other relevant provisions of this Agreement.
(k)Entity Transfer Certificate.  Entity Transfer Certification confirming that Seller is a “United States Person” within the meaning of Section 1445 of the Internal Revenue Code of 1986, as amended.
12.PRORATIONS AND ADJUSTMENTS.

The following shall be prorated and adjusted between Seller and Purchaser as of the Closing Date, except as otherwise specified:
(a)The amount of all security and other tenant deposits, and interest due thereon, if any, shall be credited to Purchaser.
(b)Purchaser and Seller shall divide the cost of any earnest money and closing escrows hereunder equally between them (except for any escrow established solely to accommodate Purchaser’s lender, if any, and for any incremental cost of such lender’s participation in any escrow established by the parties).
(c)To the extent not paid by Tenant under the Anchor Lease or Seller under the Seller Lease, water, electricity, sewer, gas, telephone and other utility charges based, to the extent practicable, on final meter readings and final invoices.
(d)Amounts paid or payable under the Service Contracts being assumed by Purchaser, if any, shall be prorated.
(e)To the extent not paid by Tenant under the Anchor Lease or Seller under the Seller Lease, all general real estate, personal property and ad valorem taxes for the current year applicable to the Project shall be prorated in accordance with local custom; provided that, if the tax bill for the tax year in which the Closing occurs has not been received as of the Closing Date, the tax amounts to be prorated at Closing shall be assumed to equal 102% of taxes for the immediately preceding tax year.
(f)To the extent not paid by Tenant under the Anchor Lease or Seller under the Seller Lease, all assessments, general or special, shall be prorated as of the Closing Date, with Seller being responsible for any installments of assessments which are due prior to the Closing Date and Purchaser being responsible for any installments of assessments which are due on or after the Closing Date.
(g)Purchaser will receive a credit at Closing for the prorated amount of all base or fixed rent payable pursuant to the Anchor Lease and all Additional Rents (collectively, “Rent”) previously paid to, or collected by, Seller and attributable to any period following the Closing Date.  Rents are “Delinquent” when they were due prior to the Closing Date, and payment thereof has not been made on or before the Closing Date.  Delinquent Rent shall not be prorated at Closing.  All Rent collected by Purchaser or Seller from each tenant from and after Closing will be applied as follows:  (i) first, to Rent owed for the month in which the Closing Date occurs (the “Closing Month”), which Rent shall be prorated and apportioned between Purchaser and Seller in accordance with this Section 12(g) in the same manner in which such Rent would have been prorated and apportioned had it been collected prior to Closing, (ii) second, to any accrued Rents owing to Purchaser, and (iii) third, to Delinquent Rents owing to Seller for the period prior to Closing.  Any Rent collected by Purchaser and due Seller will be promptly remitted to Seller.  Any Rent collected by Seller and due Purchaser shall be promptly remitted to Purchaser.  Purchaser shall use reasonable efforts to collect Delinquent Rents owed to Seller in the ordinary course of its business for a period of six (6) months from and after Closing; provided, however, that Seller shall not have, and at Closing shall be deemed to have waived, any right to pursue the Tenant under the Anchor Lease for any Rent and other sums due Seller for period attributable to Seller’s ownership of the Project.  “Additional Rents” shall mean any and all amounts due from Tenant for operating expenses, common area maintenance charges, taxes, shared utility charges, management fees, insurance costs, other comparable expenses and pass-through charges and any other tenant charges that are paid by Tenant to Seller, as landlord, as opposed to charges (e.g. utility) that Tenant pays directly to third parties.  The provisions of this Section 12(g) shall survive the Closing and the delivery of any conveyance documentation.
(h)Such other items that are customarily prorated in transactions of this nature shall be ratably prorated.
Any and all prorations made pursuant to this Agreement on the Closing Date shall be deemed final.

13.CLOSING EXPENSES.
Seller shall only pay for:  (i) subject to Section 12(a) hereof, one-half of the cost of any escrows hereunder, (ii) the cost of the premium for the base Title Policy; (iii) any local, county, or state transfer taxes payable upon or in connection with the recording of the Deed. Purchaser will pay for (i) subject to Section 12(a) hereof, one-half of any escrow costs hereunder, (ii) the cost of recording the Deed, (iii) the cost of  any “extended form coverage,” (iv) the cost of any endorsements to the Title Policy, and (v) the cost of Updated Survey.  Each party will be responsible for paying its own attorneys’ fees. 
14.DESTRUCTION, LOSS OR DIMINUTION OF PROJECT.
If, prior to Closing, all or any portion of the Project is damaged by fire or other natural casualty (collectively “Damage”), or is taken or made subject to condemnation, eminent domain or other governmental acquisition proceedings (collectively “Eminent Domain”), then:
(a)If the aggregate cost of repair or replacement or the value of the Damage or Eminent Domain (collectively, “Repair and/or Replacement”) is Five Hundred Thousand and 00/100 Dollars ($500,000.00) or less, in the opinion of Purchaser’s and Seller’s respective engineering consultants, Purchaser shall close and take the Project as diminished by such events with an assignment by Seller of any casualty insurance or condemnation proceeds and the payment by Seller to Purchaser of any applicable deductible amounts.
(b)If the aggregate cost of Repair and/or Replacement is greater than Five Hundred Thousand and 00/100 Dollars ($500,000.00), in the opinion of Purchaser’s and Seller’s respective engineering consultants, then Purchaser, at its sole option, may elect either to (i) terminate this Agreement by written notice to Seller and receive an immediate return of the Earnest Money, together with all interest earned thereon, and neither party shall have any further liability to the other hereunder, except as provided in Sections 6(c), 17 and 20 below; or (ii) proceed to close and take the Project as diminished by such events; together with an assignment of the proceeds of Seller’s casualty insurance for all Damage (or condemnation awards for any Eminent Domain) and the payment by Seller to Purchaser of any applicable deductible amounts.
(c)In the event of a dispute between Seller and Purchaser with respect to the cost of Repair and/or Replacement with respect to the matters set forth in this Section 14, an engineer designated by Seller and an engineer designated by Purchaser shall select an independent engineer licensed to practice in the jurisdiction where the Project is located who shall resolve such dispute.  All fees, costs and expenses of such third engineer so selected shall be shared equally by Purchaser and Seller.
15.DEFAULT.
(a)Default by Seller.  If Seller shall have failed (prior to a material default by Purchaser hereunder) to perform any of the covenants and agreements contained herein to be performed by Seller within the time for performance as specified herein (including Seller’s obligation to close), Purchaser may either (i) terminate Purchaser’s obligations under this Agreement by written notice to Seller with a copy to Escrowee, in which event the Earnest Money, together with all interest earned thereon, shall be returned to Purchaser; or (ii) Purchaser may file an action for specific performance of this Agreement.  Purchaser shall have no other remedy for any pre-Closing default by Seller, including any right to damages.
(b)Default by Purchaser.  In the event Purchaser defaults in its obligations to perform any of the covenants and agreements contained herein to be performed by Purchaser within the time for performance as specified herein (including Purchaser’s obligation to close), then Seller shall cause the Escrowee to deliver the Earnest Money, together with all interest earned thereon, to Seller, and Seller shall have no other remedy for any pre-Closing default by Purchaser, including any right to damages.  PURCHASER AND SELLER ACKNOWLEDGE AND AGREE THAT (i) THE AMOUNT OF THE EARNEST MONEY IS A REASONABLE ESTIMATE OF AND BEARS A REASONABLE RELATIONSHIP TO THE DAMAGES THAT WOULD BE SUFFERED AND COSTS INCURRED BY SELLER AS A RESULT OF HAVING WITHDRAWN THE PROJECT FROM SALE AND THE FAILURE 

OF CLOSING TO HAVE OCCURRED DUE TO DEFAULT OF PURCHASER UNDER THIS AGREEMENT; (ii) THE ACTUAL DAMAGES SUFFERED AND COSTS INCURRED BY SELLER AS A RESULT OF SUCH WITHDRAWAL AND FAILURE TO CLOSE DUE TO A DEFAULT OF PURCHASER UNDER THIS AGREEMENT WOULD BE EXTREMELY DIFFICULT AND IMPRACTICAL TO DETERMINE; (iii) PURCHASER SEEKS TO LIMIT ITS LIABILITY UNDER THIS AGREEMENT TO THE AMOUNT OF THE EARNEST MONEY IN THE EVENT THIS AGREEMENT IS TERMINATED AND THE TRANSACTION CONTEMPLATED BY THIS AGREEMENT DOES NOT CLOSE DUE TO A DEFAULT OF PURCHASER UNDER THIS AGREEMENT; AND (iv) THE AMOUNT OF THE EARNEST MONEY SHALL BE AND CONSTITUTE VALID LIQUIDATED DAMAGES.

____________________                    ____________________
Purchaser’s Initials                        Seller’s Initials
16.SUCCESSORS AND ASSIGNS.
Neither party shall assign this Agreement without the prior written consent of the other, except that (a) Seller may assign its interest in and obligations under this Agreement to a so-called “Qualified Intermediary” in order to accomplish the Exchange, and (b) Purchaser may assign its interest in and obligations under this Agreement to any entity controlling, controlled by, or under common control with Purchaser, so long as Purchaser notifies Seller of the assignment at least five (5) business days prior to Closing; provided that no such assignment by Purchaser shall relieve Purchaser of its obligations and liabilities under this Agreement.
17.LITIGATION.
In the event of litigation between the parties with respect to the Project, this Agreement, the Escrow Agreement, the performance of their respective obligations hereunder or the effect of a termination under this Agreement or the Escrow Agreement, the losing party shall pay all costs and expenses incurred by the prevailing party in connection with such litigation, including, but not limited to, reasonable attorneys’ fees of counsel selected by the prevailing party.  Notwithstanding any provision of this Agreement to the contrary, the obligations of the parties under this Section 17 shall survive termination of this Agreement.
18.NOTICES.
Any notice, demand or request which may be permitted, required or desired to be given in connection therewith shall be given in writing and directed to Seller and Purchaser as follows:

	
		
	Seller:
	Sears Outlet Store, L.L.C.
5500 Trillium Blvd., Suite 501
Hoffman Estates, Illinois 60192
Attn: Mr. Rohit Jacob
Telephone: 847-286-1146
Email: rohit.jacob@shos.com

With a copy to:

Sears Outlet Store, L.L.C.
5500 Trillium Blvd., Suite 501
Hoffman Estates, Illinois 60192
Attn:General Counsel
Email: _____________________

	With a copy to
its attorneys:
	Dykema Gossett PLLC
39577 Woodward Avenue, Suite 300
Bloomfield Hills, Michigan 48304
Attn:Kyle R. Hauberg, Esq.
Telephone: 248-203-0871
Email: khauberg@dykema.com

	Purchaser:
	LIT-Acquisitions, L.L.C.
c/o Clarion Partners, LLC
1717 McKinney Avenue, Suite 1900
Dallas, Texas 75202
Attention:Dayton Conklin
Telephone: 214-775-7681
Email: dayton.conklin@clarionpartners.com

	With a copy to
its attorneys:
	Vinson & Elkins LLP
2001 Ross Avenue, Suite 3700
Dallas, Texas 75201
Attention:Russell W. Oshman, Esq.
Telephone: 214-220-7903
Email: roshman@velaw.com

Notices shall be deemed properly delivered and received when and if either (i) personally delivered; (ii) one (1) business day after deposit with Federal Express or other overnight courier; or (iii) delivered to the electronic mail address of the addressee, so long as a confirmatory notice is sent by personal delivery or Federal Express or other overnight courier.  Notices given by counsel to either party shall be deemed to have been given by such party.
19.BENEFIT.
This Agreement is for the benefit only of the parties hereto and no other person or entity shall be entitled to rely hereon, receive any benefit herefrom or enforce against any party hereto any provision hereof.
20.BROKERAGE.
Each party hereto represents and warrants to the other that it has dealt with no brokers or finders in connection with this transaction, except for Jones Lang LaSalle (the “Broker”). The commission due to the Broker shall be paid by Seller pursuant to a separate agreement. Seller and Purchaser each hereby indemnify, protect and defend and hold the other harmless from and against all losses, claims, costs, expenses, damages 

(including, but not limited to, attorneys’ fees of counsel selected by the indemnified party) resulting from the claims of any broker, finder, or other such party, other than the Broker, claiming by, through or under the acts or agreements of the indemnifying party.  The obligations of the parties pursuant to this Section 20 shall survive any termination of this Agreement.
21.MISCELLANEOUS.
(a)Entire Agreement.  This Agreement constitutes the entire understanding between the parties with respect to the transaction contemplated herein, and all prior or contemporaneous oral agreements, understandings, representations and statements, and all prior written agreements, understandings, letters of intent and proposals are merged into this Agreement.  Neither this Agreement nor any provisions hereof may be waived, modified, amended, discharged or terminated except by an instrument in writing signed by the party against which the enforcement of such waiver, modification, amendment, discharge or termination is sought, and then only to the extent set forth in such instrument.
(b)Time of the Essence.  Time is of the essence of this Agreement.  If any date herein set forth for the performance of any obligations by Seller or Purchaser or for the delivery of any instrument or notice as herein provided should be on a Saturday, Sunday or legal holiday, the compliance with such obligations or delivery shall be deemed acceptable on the next business day following such Saturday, Sunday or legal holiday.  As used herein, the term “legal holiday” means any state or federal holiday for which financial institutions or post offices are generally closed in the State of Illinois for observance thereof.
(c)Construction.  The headings of various Sections in this Agreement are for convenience only, and are not to be utilized in construing the content or meaning of the substantive provisions hereof.
(d)Governing Law; Waiver of Jury Trial.  This Agreement shall be governed by and construed in accordance with the laws of the State of California, without regard to conflicts of law principles.  TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE PARTIES HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE ANY RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.  This Section 21(d) shall survive Closing or the earlier termination of this Agreement.
(e)Partial Invalidity.  The provisions hereof shall be deemed independent and severable, and the invalidity or partial invalidity or enforceability of any one provision shall not affect the validity of enforceability of any other provision hereof.
(f)No Recording.  Neither this Agreement nor any memorandum thereof shall be recorded and the act of recording by Purchaser shall be deemed a default by Purchaser hereunder.
(g)Counterpart.  This Agreement may be executed in counterparts, each of which shall constitute an original but all of which together shall constitute one and the same instrument.  To facilitate execution of this Agreement, the parties may execute and exchange, by electronic mail transmission, counterparts of the signature pages to this Agreement.
22.ESTOPPEL CERTIFICATE.  
It shall be a condition precedent to Purchaser’s obligation to proceed to Closing under this Agreement that, on or prior to the Closing Date, Seller delivers to Purchaser an estoppel certificate from Tenant disclosing no material breaches or defaults under the Anchor Lease and otherwise in the form required under the Anchor Lease (the “Estoppel Certificate”).  Seller shall request the Estoppel Certificate from Tenant within five (5) business days following the Contract Date.
23.STATE-SPECIFIC PROVISIONS.
(a)Natural Hazard Disclosure.  Seller has commissioned or will commission the preparation of a natural hazard disclosure statement (the “Natural Hazard Disclosure”) including the matters required by Article 1.7 of the California Civil Code (currently Sections 1103 through 1103.14).  Purchaser acknowledges that the transactions contemplated by this Agreement are not subject to such Article 1.7, but 

that nevertheless the Natural Hazard Disclosure shall serve to satisfy any and all disclosure requirements relating to the matters referenced in the Natural Hazard Disclosure.  Seller does not warrant or represent either the accuracy or the completeness of the information in the Natural Hazard Disclosure, and Purchaser shall use the same merely as part of its overall investigation of the Project.
(b)Seller’s Environmental Inquiry.  Purchaser acknowledges and agrees that Seller has indicated that the sole inquiry and investigation Seller has conducted in connection with the environmental condition of the Project is to obtain the third party reports in Seller’s possession relating to Hazardous Materials at the Project and that, for all purposes, including without limitation for purposes of California Health and Safety Code Section 25359.7, Seller has acted reasonably in solely relying upon said inquiry and investigation.
(c)Energy Use Disclosures.  Purchaser acknowledges and agrees that (i) it has received all disclosures and other documentation or information for the Project required under Section 25402.10 of the California Public Resources Code and its implementing regulations, (ii) Seller has not made and will not make any representations or warranties regarding such disclosures, documentation or information  such disclosure information is for the current occupancy and use of the Project, (iii) the energy profile of the Project will vary depending on any future occupancy and/or use of the Project, and (iv) Seller makes no claims, representations or warranties regarding the future energy profile of the Project.
(d)Waivers and Releases.  With respect to the waivers and releases set forth in this Agreement relating to unknown and unsuspected claims, Purchaser hereby acknowledges that such waivers and releases are being made after obtaining the advice of counsel and with the full knowledge and understanding that the consequences and effects of such waivers, and that such waivers are made with the full knowledge, understanding and agreement that California Civil Code Section 1542 provides as follows, and that the protections afforded by said Code Section are hereby waived:
“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.”
The foregoing waiver shall be deemed to be restated and re-made as of, and shall survive, Closing.
/s/ DC
Purchaser’s Initials
[SIGNATURE PAGE TO FOLLOW]

IN WITNESS WHEREOF, the parties hereto have executed this Agreement of Purchase and Sale on the date first above written.
	
					
	 
	SELLER:

	 
	SEARS OUTLET STORE, L.L.C., a Delaware limited liability company

	 
	 
	 
	 
	 

	 
	By:
	/s/ WILL POWELL
	 

	 
	Its:
	President
	 

	
						
	 
	PURCHASER:
	 

	 
	LIT-ACQUISITIONS, L.L.C., a Delaware limited liability company

	 
	 
	 
	 
	 
	 

	 
	By:
	/s/ DAYTON CONKLIN
	 
	 

	 
	Its:
	SVP
	 
	 

SCHEDULE OF EXHIBITS
A    Legal Description of the Land
B    Property Documents
C    Service Contracts

A-1
EXHIBIT A
Legal Description of the Land
Real property in the City of San Leandro, County of Alameda, State of California, described as follows:
LOTS 23 TO 30 INCLUSIVE AND THE NORTHEASTERN 100 FEET OF LOT 22, AS SAID LOTS ARE SHOWN ON THE MAP OF "TRACT 1792, CITY OF SAN LEANDRO, ALAMEDA COUNTY, CALIFORNIA", FILED JUNE 21, 1957, IN BOOK 38 OF MAPS, AT PAGE 31, IN THE OFFICE OF THE COUNTY RECORDER OF ALAMEDA COUNTY.
EXCEPTING THEREFROM THAT PORTION OF THE LAND GRANTED TO THE CITY OF SAN LEANDRO, A MUNICIPAL CORPORATION, IN THAT CERTAIN CORPORATION QUITCLAIM DEED RECORDED JANUARY 19, 1966 IN BOOK 1688, BOOK 166 OF OFFICIAL RECORDS, AND RERECORDED FEBRUARY 9, 1966 IN BOOK 1703, PAGE 826 OF OFFICIAL RECORDS.
Common Address:  1980 West Avenue 140th in San Leandro, California
Parcel Identification No.: 077B-0853-019

B-1

EXHIBIT B
Property Documents
1.    All service contracts and agreements.
		
	2.
	Operating statements, including capital improvement history, and real estate tax bills for the current year and prior year.

		
	3.
	Seller’s existing surveys and title insurance policies.

		
	4.
	As-built drawings.

		
	5.
	Soil, engineering, physical inspection and environmental reports.

		
	6.
	Existing lease(s) and all amendments thereto.

C-1
EXHIBIT C
Service Contracts
1.    Fire Systems Maintenance: Telgian Corporation (Fire Extinguishers, Emergency Lights, Sprinkler Systems Inspections)
2.    Fire and Burglar Alarm Service: Protection 1

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