Document:

Membership Interest Purchase Agreement

 EXHIBIT 10.13 
  
  

 MEMBERSHIP INTEREST PURCHASE
AGREEMENT 
 BETWEEN 
 PARAGON STEAKHOUSE RESTAURANTS, INC. 
 AND 
 DELAWARE TRUST COMPANY, N.A. AS OWNER TRUSTEE AND WELLS FARGO BANK, N.A. AS INDENTURE TRUSTEE OF THE ACLC BUSINESS LOAN RECEIVABLES TRUST 
 1999-2 
 AND 
 DELAWARE TRUST COMPANY, N.A. AS OWNER TRUSTEE AND WELLS FARGO BANK, N.A. AS INDENTURE TRUSTEE OF THE ACLC BUSINESS LOAN RECEIVABLES TRUST

 2000-1 
 OCTOBER
____, 2006 
  

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
	1.	  	Definitions	  	2
			
	2.	  	Purchase and Sale of Interests	  	7
			
		  	 (a)      Basic Transaction.
	  	7
		  	 (b)      Purchase Price and Payment
	  	7
		  	 (c)       Post-Closing Adjustment
	  	8
		  	 (d)      Closing
	  	9
		  	 (e)       Deliveries at Closing
	  	9
		  	 (f)       Security for Note
	  	10
		  	 (g)      Liquor Licenses
	  	10
		  	 (h)      Proration of Expenses
	  	10
		  	 (i)       Gift Cards
	  	11
			
	3.	  	Representations and Warranties Concerning Transaction	  	11
			
		  	 (a)      Sellers’ Representations and Warranties
	  	11
		  	 (b)      Buyer’s Representations and Warranties
	  	12
			
	4.	  	Representations and Warranties Concerning Each Company and Its Subsidiaries	  	12
			
		  	 (a)      Organization, Qualification, and Corporate Power
	  	13
		  	 (b)      Capitalization
	  	13
		  	 (c)       Noncontravention
	  	13
		  	 (d)      Brokers’ Fees
	  	14
		  	 (e)       Title to Assets
	  	14
		  	 (f)       Subsidiaries
	  	14
		  	 (g)      Financial Statements
	  	14
		  	 (h)      Events Subsequent to Most Recent Fiscal Year End:
	  	15
		  	 (i)       Undisclosed Liabilities
	  	17
		  	 (j)       Legal Compliance
	  	17
		  	 (k)      Tax Matters
	  	17
		  	 (l)       Real Property
	  	19
		  	 (m)     Intellectual Property
	  	22
		  	 (n)      Tangible Assets
	  	23
		  	 (o)      Inventory
	  	23
		  	 (p)      Contracts
	  	24
		  	 (q)      Notes and Accounts Receivable
	  	25
		  	 (r)       Powers of Attorney
	  	25
		  	 (s)       Insurance
	  	25
		  	 (t)       Litigation
	  	26
		  	 (u)      Reserved
	  	26
		  	 (v)      Liability
	  	26
		  	 (w)     Employees
	  	26

  

 -i- 

 TABLE OF CONTENTS 
 (continued) 
  

					
	 	  	 	  	Page
		  	 (x)      Employee Benefits
	  	26
		  	 (y)      Guaranties
	  	28
		  	 (z)       Environmental, Health, and Safety Matters
	  	28
		  	 (aa)    Certain Business Relationships with Company and Its Subsidiaries
	  	29
		  	 (bb)   Suppliers
	  	29
		  	 (cc)    Disclosure
	  	29
			
	5.	  	Pre-Closing Covenants	  	29
			
		  	 (a)      General
	  	29
		  	 (b)      Notices and Consents
	  	29
		  	 (c)       Operation of Business
	  	29
		  	 (d)      Preservation of Business
	  	30
		  	 (e)       Full Access
	  	30
		  	 (f)       Notice of Developments
	  	30
		  	 (g)      Exclusivity
	  	30
		  	 (h)      Maintenance of Real Property
	  	30
		  	 (i)       Leases
	  	30
		  	 (j)       Title Insurance and Surveys
	  	30
		  	 (k)      Tax Matters
	  	31
		  	 (l)       Payroll Expenses
	  	31
		  	 (m)     Employment Taxes
	  	31
			
	6.	  	Post-Closing Covenants	  	31
			
		  	 (a)      General
	  	31
		  	 (b)      Litigation Support
	  	31
		  	 (c)       Transition
	  	31
		  	 (d)      Confidentiality
	  	32
		  	 (e)       Reserved
	  	32
		  	 (f)       Reserved
	  	32
		  	 (g)      Employee Benefits
	  	32
		  	 (h)      Sales and Use Taxes
	  	32
		  	 (i)       Handling of Prior Claims
	  	32
			
	7.	  	Conditions to Obligation to Close	  	32
			
		  	 (a)      Conditions to Buyer’s Obligation
	  	32
		  	 (b)      Conditions to Sellers’ Obligation
	  	36
		  	 (c)       Fees and Costs
	  	36
			
	8.	  	Remedies for Breaches of This Agreement	  	37
			
		  	 (a)      Survival of Representations and Warranties
	  	37
		  	 (b)      Indemnification Provisions for Buyer’s Benefit
	  	37

  

 -ii- 

 TABLE OF CONTENTS 
 (continued) 
  

					
	 	  	 	  	Page
		  	 (c)       Indemnification Provisions for Sellers’ Benefit
	  	38
		  	 (d)      Matters Involving Third Parties
	  	38
		  	 (e)       Determination of Adverse Consequences
	  	39
			
	9.	  	Tax Matters	  	39
			
		  	 (a)      Tax Indemnification
	  	39
		  	 (b)      Straddle Period
	  	39
		  	 (c)       Responsibility for Filing Tax Returns
	  	39
		  	 (d)      Cooperation on Tax Matters
	  	39
		  	 (e)       Tax Sharing Agreements
	  	40
			
	10.	  	Reserved	  	40
			
	11.	  	Termination	  	40
			
		  	 (a)      Termination of Agreement
	  	40
		  	 (b)      Effect of Termination
	  	41
			
	12.	  	Miscellaneous	  	41
			
		  	 (a)      Press Releases and Public Announcements
	  	41
		  	 (b)      No Third-Party Beneficiaries
	  	41
		  	 (c)       Entire Agreement
	  	41
		  	 (d)      Succession and Assignment
	  	41
		  	 (e)       Counterparts
	  	41
		  	 (f)       Headings
	  	41
		  	 (g)      Notices
	  	41
		  	 (h)      Governing Law
	  	42
		  	 (i)       Amendments and Waivers
	  	42
		  	 (j)       Severability
	  	42
		  	 (k)      Expenses
	  	42
		  	 (l)       Construction
	  	42
		  	 (m)     Incorporation of Exhibits and Schedules
	  	43
		  	 (n)      Specific Performance
	  	43
		  	 (o)      Submission to Jurisdiction
	  	43
		  	 (p)      Governing Language
	  	43

  

 -iii- 

			
	Exhibit A	  	Form of Promissory Note
	Exhibit B	  	Form of Escrow Agreement
	Exhibit C	  	Financial Statements
	Exhibit D	  	Employee Benefits
	Disclosure Schedule	  	Exceptions to Representations and Warranties Concerning Each Company and
		  	its Subsidiaries

  

 -iv- 

 MEMBERSHIP INTEREST PURCHASE AGREEMENT 
 THIS MEMBERSHIP INTEREST PURCHASE AGREEMENT (the "Agreement") is entered into on October____, 2006, by and between Paragon Steakhouse Restaurants,
Inc., a Delaware corporation and wholly-owned subsidiary of Steakhouse Partners, Inc., a Delaware corporation (the “Buyer”), and Delaware Trust Company, N.A as Owner Trustee and Wells Fargo Bank, N.A. as Indenture Trustee of the
ACLC Business Loan Receivables Trust 1999-2, and Delaware Trust Company, N.A as Owner Trustee and Wells Fargo Bank, N.A. as Indenture Trustee of the ACLC Business Loan Receivables Trust 2000-1 (each a “Seller” and collectively, the
“Sellers”), acting through AMRESCO Commercial Finance, LLC, a Delaware limited liability company (“AMRESCO”) as the servicing agent for Sellers. The Buyer and the Sellers are referred to collectively herein as the
“Parties.” This Agreement is entered into with reference to the following facts: 
 A. The Sellers own One Hundred Percent
(100%) of the outstanding membership interests (collectively the “Interests”) in each of DWH I, LLC, an Idaho limited liability company (“DWHI”), DWH II, LLC, an Idaho limited liability company
(“DWHII”), and Pittsfield DWH, LLC, an Idaho limited liability company (“Pittsfield”). DWHI owns One Hundred Percent (100%) of the issued and outstanding capital stock of Saloon Beverage, Inc., a Vermont
corporation (“SBI”). 
 B. The Sellers were the lienholders on the Restaurants described below. Hospitality Well Done!,
Inc., a Vermont corporation, Sirloin Saloon, Inc., a Vermont corporation, Sirloin Saloon of Shelburne, Inc., a Vermont corporation, Sirloin Saloon of Rutland, Inc., a Vermont corporation, Sirloin Saloon of Manchester, Inc., a Vermont corporation,
Dakota of Avon, Inc., a Vermont corporation, Dakota of Milford, Inc., a Vermont corporation, Adirondack’s Restaurants, Inc., a Vermont corporation, Perry Development Group, Inc., a Vermont corporation, and Angler Enterprise, L.L.C., a Vermont
limited liability company (collectively, the “Borrowers”), owned the Restaurants, as applicable, and have transferred the Restaurants to the Companies and Subsidiary in lieu of foreclosure. 
 C. SBI holds the operating assets in the operation of three Sirloin Saloon restaurants located at: 2545 Shelburne Road Shelburne, VT 05482 (the
“Shelburne Restaurant”), 200 South Main Street, Rutland, VT 05701 (the “Rutland Restaurant”), and 135 Depot Street, Manchester Center, VT 05255 (the “Manchester Restaurant”). DWHI holds the
operating assets in the operation of three Dakota restaurants located at 1651 Boston Post Road, Milford, CT 06460 (the “Milford Restaurant”), 225 West Main Street, Avon, CT 06001 (the “Avon Restaurant”), and 579
Troy-Schenectady Road Suite 79-80, Latham, NY 12110 (the “Latham Restaurant”). Pittsfield holds the operating assets in the operation of the Dakota restaurants located at 1035 South Street, Pittsfield, MA 01201 (the
“Pittsfield Restaurant”, and collectively with the Shelburne Restaurant, Rutland Restaurant, Manchester Restaurant, Milford Restaurant, Latham Restaurant and Avon Restaurant, the “Restaurants”). 
 D. DWHII owns fee simple title to the real estate and improvements located at the Shelburne, Rutland, Manchester and Pittsfield Restaurants
(collectively, the “Owned Real Property”), and leases such Owned Real Property to SBI or Pittsfield, as applicable. 
 E.
SBI holds the alcoholic beverage licenses for the Shelburne, Rutland and Manchester Restaurants; DWHI holds the alcoholic beverage licenses for the Latham Restaurant; Pittsfield holds the alcoholic beverage licenses for the Pittsfield Restaurant;
and D. Craig Christensen, Vice President and General Counsel of AMRESCO, holds the alcoholic beverage licenses for the Avon and Milford Restaurants (collectively the “Alcohol Licenses”). 
  

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 F. DWHI, DWHII, Pittsfield and SBI are referred to herein individually as a “Company”
and collectively as the “Companies.” 
 G. The operation of the Restaurants and the goodwill associated therewith is
referred to herein as the “Business.” 
 H. Each Seller desires to sell, transfer and assign to the Buyer, and the Buyer
desires to purchase and acquire from the Seller, all of the Interests, all on the terms set forth herein. 
 NOW, THEREFORE, in consideration
of the premises and the mutual promises herein made, and in consideration of the representations, warranties, and covenants herein contained, the Parties agree as follows. 
  

	1.	Definitions. 

 “Adverse
Consequences” means all actions, suits, proceedings, hearings, investigations, charges, complaints, claims, demands, injunctions, judgments, orders, decrees, rulings, damages, dues, penalties, fines, costs, amounts paid in settlement,
Liabilities, obligations, Taxes, liens, losses, expenses, and fees, including court costs and attorneys’ fees and expenses. 
 “Affiliate” has the meaning set forth in Rule 12b-2 of the regulations promulgated under the Securities Exchange Act. 
 “Affiliated Group” means any affiliated group within the meaning of Code Section 1504(a) or any similar group defined under a similar provision of state, local or foreign law. 
 “Basis” means any past or present fact, situation, circumstance, status, condition, activity, practice, plan, occurrence, event,
incident, action, failure to act, or transaction that forms or could form the basis for any specified consequence. 
 “Closing” has the meaning set forth in Section 2(d) below. 
 “Closing Date” has the
meaning set forth in Section 2(d) below. 
 “COBRA” means the requirements of Part 6 of Subtitle B of Title I of
ERISA and Code Section 4980B and of any similar state law. 
 “Code” means the Internal Revenue Code of 1986, as
amended. 
 “Company” and “Companies” have the meanings set forth in the preface above. 
 “Confidential Information” means any information concerning the businesses and affairs of the Buyer, the Sellers or each Company and its
Subsidiaries that is not already generally available to the public. 
 “Disclosure Schedule” has the meaning set forth in
Section 4 below. 
 “Employee Benefit Plan” means any “employee benefit plan” (as such term is defined
in ERISA Section 3(3)) and any other employee benefit plan, program or arrangement of any kind. 
 “Employee Pension Benefit
Plan” has the meaning set forth in ERISA Section 3(2). 
  

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 “Employee Welfare Benefit Plan” has the meaning set forth in ERISA Section 3(1).

 “Encumbrance Documents” has the meaning set forth in Section 4(l) below. 
 “Environmental, Health, and Safety Requirements” shall mean all federal, state, local, and foreign statutes, regulations, ordinances,
and other provisions having the force or effect of law, all judicial and administrative orders and determinations, all contractual obligations, and all common law concerning public health and safety, worker health and safety, and pollution or
protection of the environment, including, without limitation, all those relating to the presence, use, production, generation, handling, transportation, treatment, storage, disposal, distribution, labeling, testing, processing, discharge, release,
threatened release, control, or cleanup of any hazardous materials, substances, or wastes, chemical substances or mixtures, pesticides, pollutants, contaminants, toxic chemicals, petroleum products or byproducts, asbestos, polychlorinated biphenyls,
noise, or radiation, each as amended and as now or hereafter in effect. 
 “ERISA” means the Employee Retirement Income
Security Act of 1974, as amended. 
 “ERISA Affiliate” means each entity that is treated as a single employer with Company
for purposes of Code Section 414. 
 “Estoppel Certificates” has the meaning set forth in Section 7(a)
below. 
 “Fiduciary” has the meaning set forth in ERISA Section 3(21). 
 “Financial Statements” has the meaning set forth in Section 4(g) below. 
 “FIRPTA Affidavit” has the meaning set forth in Section 7(a) below. 
 “GAAP” means United States generally accepted accounting principles as in effect from time to time, consistently applied. 
 “Improvements” has the meaning set forth in Section 4(l) below. 
 “Indemnified Party” has the meaning set forth in Section 8(d) below. 
 “Indemnifying Party” has the meaning set forth in Section 8(d) below. 
 “Intellectual Property” means all of the following in any jurisdiction throughout the world: (a) all inventions (whether patentable
or unpatentable and whether or not reduced to practice), all improvements thereto, and all patents, patent applications, and patent disclosures, together with all reissuances, continuations, continuations-in-part, revisions, extensions, and
reexaminations thereof, (b) all trademarks, service marks, trade dress, logos, slogans, trade names, mascots, corporate names, Internet domain names, and rights in telephone numbers, together with all translations, adaptations, derivations, and
combinations thereof and including all goodwill associated therewith, and all applications, registrations, and renewals in connection therewith, (c) all copyrightable works, all copyrights, and all applications, registrations, and renewals in
connection therewith, (d) all mask works and all applications, registrations, and renewals in connection therewith, (e) all trade secrets, recipes, menus and confidential business information (including ideas, research and development,
know-how, formulas, compositions, manufacturing and production processes and techniques, technical data, designs, drawings, specifications, customer and supplier lists, pricing and cost information, facility plans, training materials, facility
opening materials and business and marketing plans and proposals), (f) all computer software (including 

  

 3 

 
source code, executable code, data, databases, and related documentation), (g) all advertising, marketing and promotional materials, (h) all other
proprietary rights, and (i) all copies and tangible embodiments thereof (in whatever form or medium). 
 “Interests”
means the membership interests in DWHI, DWHII and Pittsfield. 
 “Knowledge” means actual knowledge after reasonable
investigation. 
 “Lease Consents” has the meaning set forth in Section 7(a) below. 
 “Leased Real Property” means all leasehold or subleasehold estates and other rights to use or occupy any land, buildings, structures,
improvements, fixtures, or other interest in real property held by each Company or any of its Subsidiaries. 
 “Leases”
means all leases, subleases, licenses, concessions and other agreements (written or oral), including all amendments, extensions, renewals, guaranties, and other agreements with respect thereto, pursuant to which each Company or any of its
Subsidiaries holds any Leased Real Property, including the right to all security deposits and other amounts and instruments deposited by or on behalf of each Company or any of its Subsidiaries thereunder. 
 “Liability” means any liability or obligation of whatever kind or nature (whether known or unknown, whether asserted or unasserted,
whether absolute or contingent, whether accrued or unaccrued, whether liquidated or unliquidated, and whether due or to become due), including any liability for Taxes. 
 “Lien” means any mortgage, pledge, lien, encumbrance, charge, or other security interest, other than (a) liens for Taxes not yet due and payable, (b) purchase money liens and liens securing
rental payments under capital lease arrangements, and (c) other liens arising in the Ordinary Course of Business and not incurred in connection with the borrowing of money. 
 “Material Adverse Effect” or “Material Adverse Change” means any effect or change that would be materially adverse to
the business, assets, condition (financial or otherwise), operating results, operations, or business prospects of each Company and its Subsidiaries, taken as a whole, or on the ability of either Seller to consummate timely the transactions
contemplated hereby (regardless of whether or not such adverse effect or change can be or has been cured at any time or whether Buyer has knowledge of such effect or change on the date hereof), including any adverse change, event, development, or
effect arising from or relating to (a) general business or economic conditions, including such conditions related to the business of either Company and its Subsidiaries, (b) national or international political or social conditions,
including the engagement by the United States in hostilities, whether or not pursuant to the declaration of a national emergency or war, or the occurrence of any military or terrorist attack upon the United States, or any of its territories,
possessions, or diplomatic or consular offices or upon any military installation, equipment or personnel of the United States, (c) financial, banking, or securities markets (including any suspension of trading in, or limitation on prices for,
securities on the New York Stock Exchange, American Stock Exchange, or Nasdaq National Market for a period in excess of three hours or any decline of either the Dow Jones Industrial Average or the Standard & Poor’s Index of 500
Industrial Companies by an amount in excess of fifteen percent (15%) measured from the close of business on the date hereof), (d) changes in United States generally accepted accounting principles, (e) changes in law, rules,
regulations, orders, or other binding directives issued by any governmental entity, and (f) the taking of any action contemplated by this Agreement and the other agreements contemplated hereby. 
 “Material Leased Real Property” has the meaning set forth in Section 7(a) below. 
  

 4 

 “Most Recent Balance Sheet” means the balance sheet contained within the Most Recent
Financial Statements. 
 “Most Recent Financial Statements” has the meaning set forth in Section 4(g) below.

 “Most Recent Fiscal Month End” has the meaning set forth in Section 4(g) below. 
 “Most Recent Fiscal Year End” has the meaning set forth in Section 4(g) below. 
 “Multiemployer Plan” has the meaning set forth in ERISA Section 3(37). 
 “Net Working Capital” means the amount of the consolidated current assets of the Companies minus the consolidated current liabilities of
the Companies. 
 “Non-Disturbance Agreements” has the meaning set forth in Section 7(a) below. 
 “Ordinary Course of Business” means the ordinary course of business consistent with past custom and practice (including with respect to
quantity and frequency). 
 “Party” or "Parties" has the meaning set forth in the preface above. 
 “PBGC” means the Pension Benefit Guaranty Corporation. 
 “Permitted Encumbrances” means with respect to each parcel of Real Property: (a) real estate taxes, assessments and other governmental levies, fees, or charges imposed with respect to such Real
Property that are (i) not due and payable as of the Closing Date or (ii) that are being contested in good faith and for which appropriate reserves have been established in accordance with GAAP; (b) mechanics’ liens and similar
liens for labor, materials, or supplies provided with respect to such Real Property incurred in the Ordinary Course of Business for amounts that are (i) not due and payable as of the Closing Date or (ii) being contested in good faith and
for which appropriate reserves have been established in accordance with GAAP; (c) zoning, building codes and other land use laws regulating the use or occupancy of such Real Property or the activities conducted thereon which are imposed by any
governmental authority having jurisdiction over such Real Property and are not violated by the current use or occupancy of such Real Property or the operation of each Company’s or any of its Subsidiaries’ business as currently conducted
thereon; and (d) easements, covenants, conditions, restrictions, and other similar matters of record affecting title to such Real Property which do not or would not impair the use or occupancy of such Real Property in the operation of each
Company’s or its Subsidiaries’ business as currently conducted thereon. 
 “Person” means an individual, a
partnership, a corporation, a limited liability company, an association, a joint stock company, a trust, a joint venture, an unincorporated organization, any other business entity, or a governmental entity (or any department, agency, or political
subdivision thereof). 
 “Prohibited Transaction” has the meaning set forth in ERISA Section 406 and Code
Section 4975. 
 “Purchase Price” has the meaning set forth in Section 2(b) below. 
 “Real Property” has the meaning set forth in Section 4(l) below. 
 “Real Property Laws” has the meaning set forth in Section 4(l) below. 
  

 5 

 “Reportable Event” has the meaning set forth in ERISA Section 4043. 
 “Securities Act” means the Securities Act of 1933, as amended. 
 “Securities Exchange Act” means the Securities Exchange Act of 1934, as amended. 
 “Seller” and “Sellers” have the meanings set forth in the preface above. 
 “Subsidiary” means, with respect to any Person, any corporation, limited liability company, partnership, association, or other business
entity of which (i) if a corporation, a majority of the total voting power of shares of stock entitled (without regard to the occurrence of any contingency) to vote in the election of directors, managers, or trustees thereof is at the time
owned or controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries of that Person or a combination thereof or (ii) if a limited liability company, partnership, association, or other business entity (other than
a corporation), a majority of partnership or other similar ownership interest thereof is at the time owned or controlled, directly or indirectly, by that Person or one or more Subsidiaries of that Person or a combination thereof and for this
purpose, a Person or Persons own a majority ownership interest in such a business entity (other than a corporation) if such Person or Persons shall be allocated a majority of such business entity’s gains or losses or shall be or control any
managing director or general partner of such business entity (other than a corporation). The term “Subsidiary” shall include all Subsidiaries of such Subsidiary. 
 “Surveys” has the meaning set forth in Section 7(a) below. 
 “Tax” means any federal, state, local, or foreign income, gross receipts, license, payroll, employment, excise, severance, stamp,
occupation, premium, windfall profits, environmental (including taxes under Code Section 59A), customs duties, capital stock, franchise, profits, withholding, social security (or similar), unemployment, disability, real property, personal
property, sales, use, transfer, registration, value added, alternative or add-on minimum, estimated, or other tax of any kind whatsoever, including any interest, penalty, or addition thereto, whether disputed or not and including any obligations to
indemnify or otherwise assume or succeed to the Tax liability of any other Person. 
 “Tax Return” means any return,
declaration, report, claim for refund, or information return or statement relating to Taxes, including any schedule or attachment thereto, and including any amendment thereof. 
 “Third Party Claim” has the meaning set forth in Section 8(d) below. 
 “Title Company” has the meaning set forth in Section 7(a) below. 
 “Title Policies” has the meaning set forth in Section 7(a) below. 
  

 6 

 In addition, the following terms are defined elsewhere in this Agreement, as indicated below: 
  

			
	 Term
	  	 Definition Location

		
	 Preliminary Closing Balance Sheet
	  	Section 2(c)(i)
		
	 Net Working Capital
	  	Section 2(c)(i)
		
	 Auditor
	  	Section 2(c)(iii)
		
	 Final Closing Balance Sheet
	  	Section 2(c)(iv)
		
	 Closing
	  	Section 2(d)
		
	 Closing Date
	  	Section 2(d)
		
	 Real Property Permits
	  	Section 4(l)(ix)
		
	 Encumbrance Documents
	  	Section 4(l)(xi)
		
	 Real Estate Impositions
	  	Section 4(l)(xiii)
		
	 CERCLA
	  	Section 4(z)(v)
		
	 SWDA
	  	Section 4(z)(v)
		
	 Pre-Closing Tax Period
	  	Section 9(a)
		
	 Straddle Period
	  	Section 9(b)

 2. Purchase and Sale of Interests. 
 (a) Basic Transaction. On and subject to the terms and conditions of this Agreement, Buyer agrees to purchase from Sellers, and Sellers
agree to sell to Buyer, the Interests for the consideration specified below in this Section 2. 
 (b) Purchase Price and
Payment. 
  

 7 

 (i) Purchase Price. The purchase price (“Purchase Price”) shall be Fifteen
Million Dollars ($15,000,000) and will consist of (i) cash in the amount of Nine Million Dollars ($9,000,000) (the “Cash Payment”) and (ii) a promissory note executed by Buyer in the form attached hereto as Exhibit
A, payable to Sellers in the amount of Six Million Dollars ($6,000,000) (the “Note”). The Purchase Price will be subject to adjustment in accordance with Section 2(c). 
 (ii) Payment of Purchase Price. 
 (A) Buyer agrees to pay to Sellers at the Closing the Cash Payment (less the Earnest Money) in cash payable by wire transfer or delivery of other immediately available funds. In addition, at the Closing Buyer shall deliver the Note and the
Security Documents (as defined below) to the Sellers. 
 (B) Upon the execution of this Agreement Buyer shall deposit with AMRESCO, as escrow
agent (the “Escrow Agent”), the amount of One Hundred Thousand Dollars ($100,000) (the “Earnest Money”). Buyer, Sellers and AMRESCO shall enter into an escrow agreement relating to the Earnest Money in the form
attached hereto as Exhibit B. The Earnest Money shall be deposited into an interest bearing account by AMRESCO pursuant to the escrow agreement. The Earnest Money, together with accrued interest, shall be credited against the Purchase Price,
and paid to Sellers, at the Closing. If this Agreement is terminated (i) mutually by the parties, (ii) as a result of Sellers’ breach of the representations or warranties contained in Section 3(a); or (iii) as a result of
Seller’s failure to close the transaction, the Earnest Money shall be returned to Buyer, together with all accrued interest thereon, as soon as practicable (but not more than five (5) business days), otherwise the Earnest Money is
non-refundable to Buyer and deemed fully earned by Sellers. 
 (c) Post-Closing Adjustment. 
 (i) Preparation of Preliminary Closing Balance Sheet. As soon as reasonably possible after the Closing Date (but not later than one hundred
twenty (120) days thereafter), Buyer will prepare a consolidated balance sheet (the “Preliminary Closing Balance Sheet”) of the Companies and their Subsidiaries dated as of the Closing Date. The Preliminary Closing Balance
Sheet shall be prepared in accordance with GAAP on a basis consistent with the Most Recent Balance Sheet and shall set forth specifically “Net Working Capital”. 
 (ii) Review of Preliminary Closing Balance Sheet. The Preliminary Closing Balance Sheet shall be binding and conclusive upon, and deemed
accepted by, Sellers unless Sellers shall have notified Buyer in writing of any objections thereto consistent with the provisions of this Section 2(c) within thirty (30) days after receipt thereof. The written notice under this
Section 2(c) shall specify in reasonable detail each item on the Preliminary Closing Balance Sheet that Sellers dispute, and a summary of Sellers’ reasons for such dispute. 
 (iii) Disputes. Disputes between Buyer and Sellers relating to the Preliminary Closing Balance Sheet that cannot be resolved by them within
thirty (30) days after receipt by Buyer of the notice referred to in Section 2(c)(ii) may be referred no later than forty-five (45) days after such receipt for decision at the insistence of either party to an independent
nationally recognized accounting firm selected by Buyer and Sellers to decide the matter or such other firm being referred to herein as the “Auditor”). Prior to referring the matter to the Auditor, the parties shall agree on the
procedures to be followed by the Auditor (including procedures with regard to presentation of evidence). Such procedures shall not alter the accounting practices, principles and policies to be applied to the Preliminary Closing Balance Sheet, which
will be those required by this Agreement. If the parties are unable to agree upon procedures before the end of thirty (30) days after referral of the dispute to the Auditor, the Auditor shall 

  

 8 

 
establish such procedures giving due regard to the intention of the parties to resolve disputes as quickly, efficiently and inexpensively as possible, which
procedures may be, but need not be, those proposed by either party. The parties shall then submit evidence in accordance with the procedures established, and the Auditor shall decide the dispute in accordance therewith. The Auditor’s decision
on any matter referred to it shall be final and binding on Seller and Buyer. The fee of the Auditor shall be borne by Sellers and Buyer in equal portions, unless the Auditor decides, based on its determination with respect to the reasonableness of
the respective positions of the parties, that the fee shall be borne in unequal proportions. 
 (iv) Final Closing Balance
Sheet. The Preliminary Closing Balance Sheet shall become final and binding upon the parties upon the earlier of (x) the failure by Sellers to object thereto within the period permitted under Section 2(c)(ii), (y) the
agreement between Buyer and Sellers with respect thereto or (z) the decision by the Auditor with respect to any disputes under Section 2(c)(iii). The Preliminary Closing Balance Sheet, as adjusted pursuant to the agreement of the
parties or the decision of the Auditor, when final and binding is referred to herein as the “Final Closing Balance Sheet.”  
 (v) Adjustment to the Purchase Price. As soon as practicable (but not more than five (5) business days) after the determination and delivery of the Final Closing Balance Sheet in accordance with this
Section 2(c), the Purchase Price shall be decreased by the amount, if any, by which the Net Working Capital is a negative number (i.e. less than zero). Any decrease in the Purchase Price shall be applied as a credit against the
outstanding principal amount of the Note, or if and to the extent the Note has been satisfied, shall be payable by Sellers to Buyer in immediately available funds. 
 (vi) Rights and Remedies. Notwithstanding anything to the contrary contained in this Section 2(c), pending resolution of all disputed items with respect to the Preliminary Closing Balance
Sheet, the amount of any adjustment to the Purchase Price that is not in dispute shall be paid (in accordance with Section 2(c)(v) above (x) in the case of any amounts to which Sellers have not objected pursuant to
Section 2(c), upon the earlier of (A) thirty (30) days after receipt by Sellers of the Preliminary Closing Balance Sheet or (B) the date on which Sellers shall have notified Buyer in writing of any objections thereto and
(y) in the case of any disputed amount or portions thereof, upon resolution of any dispute with respect to such amounts or portions. Any payment required by this Section 2(c) shall not limit or affect Buyer’s rights or remedies
(or be Buyer’s sole or exclusive right or remedy) with respect to this Agreement, the breach of any representation, warranty or obligation herein, the failure of any condition to Buyer’s obligations hereunder to be satisfied or the
indemnification obligations of Sellers hereunder. 
 (d) Closing. The closing of the transactions contemplated by this
Agreement (the “Closing”) shall take place at the offices of Morrison & Foerster LLP, 12531 High Bluff Drive, San Diego, California (or at such location as the parties shall mutually agree), commencing at 9:00 a.m. local
time on the second business day following the satisfaction or waiver of all conditions to the obligations of the Parties to consummate the transactions contemplated hereby (other than conditions with respect to actions the respective Parties will
take at the Closing itself) or such other date as Buyer and Sellers may mutually determine, but in no event later than sixty (60) days from the date of this Agreement (the “Closing Date”). 
 (e) Deliveries at Closing. At the Closing, (i) each Seller will deliver to Buyer the various certificates, instruments, and documents
referred to in Section 7(a) below, (ii) Buyer will deliver to each Seller the various certificates, instruments, and documents referred to in Section 7(b) below, (iii) each Seller will deliver to Buyer certificates,
if any, representing all of its right, title and interest in and to the Interests, endorsed in blank or accompanied by duly executed assignment documents, and (iv) Buyer will deliver to Sellers the consideration specified in
Section 2(b) above. 
  

 9 

 (f) Security for Note. The Note shall be secured by (i) first priority leasehold
mortgages on Restaurants, and (ii) first priority security interest on all tangible personal property located at the Restaurants. The Buyer and DWHI, as applicable, shall execute a pledge and security agreement, mortgages, and other loan
documents required by Sellers in form and substance acceptable to the parties evidencing such liens and security interests (collectively, the “Security Documents”). 
 (g) Liquor Licenses. Sellers shall execute (and shall cause any necessary third parties to execute) any and all instruments and take any
reasonable action necessary for Buyer to obtain all approvals (i) to continue use of the current liquor licenses as a result of Buyer’s purchase of the Interests and/or (ii) to secure, as of the Closing, any and all liquor licenses
for the operation of the Business not held by each Company or the Sellers or, if held, not transferable by each Company or the Sellers. Seller and Buyer recognize that Buyer may not obtain the all of the necessary approvals as set forth in
subsection (i) and (ii) above prior to Closing (collectively, the “Approvals”). Therefore, Sellers and Buyer hereby agree to cooperate in order to prevent a cessation of the sale of beer and wine (and other alcoholic
beverages) governed by the existing liquor licenses in connection with the operation of the Restaurants for the period of time from and after the Closing until the time Buyer receives the required approvals. In connection therewith, Buyer hereby
agrees that Buyer will promptly file all of the necessary documents to obtain the above-referenced approvals for each of the Restaurants. If Buyer fails to obtain the Approvals prior to Closing, the parties may mutually agree to have the closing
documents which relate to the transfer of the Interests in DWHI and Pittsfield held in escrow on the Closing Date and not released to Buyer until Buyer has obtained the necessary Approvals, in which case, the parties shall execute a management
agreement that is effective until the transfer documents are released to Buyer from Escrow, in form and substance satisfactory to the parties, whereby Sellers retain Buyer to operate and manage the Restaurants during such period. Notwithstanding the
failure to obtain the Approvals prior to Closing and the escrow of certain closing documents, the parties shall still proceed with the transfer of the Interests in DWHII to Buyer on the Closing Date, and the Purchase Price shall still be paid by
Buyer on the Closing Date. 
 (h) Proration of Expenses. To the extent not already included in calculating Net Working Capital
and the adjustment of the Purchase Price under Section 2(c)(v) above, the parties shall prorate as of 12:01 A.M. on the Closing Date (it being the intent of the parties hereto that Buyer shall be responsible for the payment of all
expenses related to the Business on the Closing Date) all operating expenses that are capable of proration on a per diem basis, including, without limitation, the following: 
 (i) Taxes. All ad valorem and personal property Taxes and all unemployment Taxes arising in connection with the operation of the Business;

 (ii) Utilities. Prior to the Closing Date, Sellers shall notify all utility companies servicing the Real Property of the anticipated
change in ownership of the Business and request that all billings after the Closing Date be made to Buyer at the address of the Business. Utility meters will be read, to the extent that the utility company will do so, during the daylight hours on
the calendar day immediately before the Closing Date; 
 (iii) Service Contracts, Leases and Insurance. All expenses and other amounts
payable under any and all Leases, contracts and insurance policies related to the Business; and 
 (iv) Booking Agreements. Any
deposits received by Sellers prior to the Closing Date with respect to confirmed bookings for dates on or after the Closing Date will be credited to Buyer. Any deposits received by Sellers on or after the Closing Date with respect to confirmed
reservations for dates on or after the Closing Date shall be forwarded to Buyer upon receipt by Sellers. Any deposits received 

  

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by Sellers prior to the Closing Date with respect to confirmed bookings for dates prior to the Closing Date shall be retained by Sellers without credit to
Buyer. 
 In the event that Buyer pays any fees, charges or Taxes which it is not required to pay hereunder, Sellers agree to reimburse Buyer immediately in
the amount of such fees, charges or Taxes paid by Buyer in the manner set forth in this Agreement. Any apportionments and prorations which are not expressly provided for in this Agreement shall be made in accordance with customary practice in the
county in which the affected portion of the Business is located. Buyer and Sellers agree to prepare and deliver at least three (3) days prior to the Closing Date, a tentative operations settlement setting forth a schedule of adjustments and
prorations as agreed upon by Buyer and Sellers (an “Operations Settlement”). A copy of the final Operations Settlement agreed upon by Buyer and Sellers shall be delivered by Buyer and Sellers at the Closing. The prorations to be
made hereunder, pursuant to the final Operations Settlement or otherwise, shall be effected by the parties hereto through an appropriate adjustment in the Purchase Price. 
 (i) Gift Cards. The dollar amount of any gift cards, gift certificates, trade script or any other instruments evidencing the right to acquire food or product (herein referred to as “gift
cards”) sold by Sellers prior to the Closing Date but redeemed from the Closing Date until the expiration of eighteen (18) months thereafter will be repaid to Buyer by Sellers. Any gift cards redeemed after such eighteen (18) month
period are not subject to repayment by Sellers. Buyer shall submit a request for repayment along with proof of redemption at the expiration of each calendar quarter for each gift card redeemed during such calendar quarter. The amount of any periodic
repayment to Buyer shall be applied as a credit against the outstanding principal amount of the Note, or if and to the extent the Note has been satisfied, shall be payable by Sellers to Buyer in immediately available funds. Any gift cards sold by
Sellers prior to the Closing Date which have been redeemed prior to the Closing Date shall be retained by Sellers without credit to Buyer. 
  

	3.	Representations and Warranties Concerning Transaction. 

 (a) Sellers’ Representations and Warranties. Each Seller jointly and severally represents and warrants to Buyer that the statements contained in this Section 3(a) are correct and
complete as of the date of this Agreement and will be correct and complete as of the Closing Date (as though made then and as though the Closing Date were substituted for the date of this Agreement throughout this Section 3(a)) with
respect to itself, except as set forth in Section 3(a) of the Disclosure Schedule. 
 (i) Authorization of
Transaction. Seller has full power and authority to execute and deliver this Agreement and to perform its obligations hereunder. This Agreement constitutes the valid and legally binding obligation of Seller, enforceable in accordance with
its terms and conditions. Seller need not give any notice to, make any filing with, or obtain any authorization, consent, or approval of any government or governmental agency in order to consummate the transactions contemplated by this Agreement.
The execution, delivery, and performance of this Agreement and all other agreements contemplated hereby have been duly authorized by Seller. 
 (ii) Noncontravention. Neither the execution and the delivery of this Agreement, nor the consummation of the transactions contemplated hereby, will (A) violate any constitution, statute, regulation, rule, injunction,
judgment, order, decree, ruling, charge, or other restriction of any government, governmental agency, or court to which Seller is subject, (B) conflict with, result in a breach of, constitute a default under, result in the acceleration of,
create in any party the right to accelerate, terminate, modify, or cancel, or require any notice under any agreement, contract, lease, license, instrument, or other arrangement to which Seller is a party or by which it is bound or to which any of
its assets is subject, or (C) result in the imposition or creation of a Lien upon or with respect to the Interests. 
  

 11 

 (iii) Brokers’ Fees. Seller has no Liability or obligation to pay any fees or
commissions to any broker, finder, or agent with respect to the transactions contemplated by this Agreement, except as Disclosed in Section 3(a)(iii) of the Disclosure Schedule. 
 (iv) Interests. Sellers hold of record and own beneficially the Interests, free and clear of any restrictions on transfer (other than any
restrictions under the Securities Act and state securities laws), Taxes, Liens, options, warrants, purchase rights, contracts, commitments, equities, claims, and demands. Neither Seller is a party to any option, warrant, purchase right, or other
contract or commitment that could require such Seller to sell, transfer, or otherwise dispose of any membership or other equity interest in each Company (other than this Agreement). Seller is not a party to any voting trust, proxy, or other
agreement or understanding with respect to the voting of any membership or other equity interest in each Company. 
 (b) Buyer’s
Representations and Warranties. Buyer represents and warrants to Seller that the statements contained in this Section 3(b) are correct and complete as of the date of this Agreement and will be correct and complete as of the
Closing Date (as though made then and as though the Closing Date were substituted for the date of this Agreement throughout this Section 3(b)). 
 (i) Organization of Buyer. Buyer is a corporation duly organized, validly existing, and in good standing under the laws of the jurisdiction of its incorporation. 
 (ii) Authorization of Transaction. Buyer has full power and authority (including full corporate or other entity power and authority) to
execute and deliver this Agreement and to perform its obligations hereunder. This Agreement constitutes the valid and legally binding obligation of Buyer, enforceable in accordance with its terms and conditions. Buyer need not give any notice to,
make any filing with, or obtain any authorization, consent, or approval of any government or governmental agency in order to consummate the transactions contemplated by this Agreement. The execution, delivery, and performance of this Agreement and
all other agreements contemplated hereby have been duly authorized by Buyer. 
 (iii) Noncontravention. Neither the execution
and the delivery of this Agreement, nor the consummation of the transactions contemplated hereby, will (A) violate any constitution, statute, regulation, rule, injunction, judgment, order, decree, ruling, charge, or other restriction of any
government, governmental agency, or court to which Buyer is subject or any provision of its charter, bylaws, or other governing documents or (B) conflict with, result in a breach of, constitute a default under, result in the acceleration of,
create in any party the right to accelerate, terminate, modify, or cancel, or require any notice under any agreement, contract, lease, license, instrument, or other arrangement to which Buyer is a party or by which it is bound or to which any of its
assets is subject. 
 (iv) Brokers’ Fees. Buyer has no Liability or obligation to pay any fees or commissions to any
broker, finder, or agent with respect to the transactions contemplated by this Agreement for which any Seller could become liable or obligated, except as disclosed in Schedule 3(b)(iv) the Disclosure Schedule. 
 (v) Investment. Buyer is not acquiring the Interests with a view to or for sale in connection with any distribution thereof within the
meaning of the Securities Act. 
 4. Representations and Warranties Concerning Each Company and Its Subsidiaries. Each Seller jointly and
severally represents and warrants to Buyer that the statements contained in this Section 4 are correct and complete as of the date of this Agreement and will be correct and complete as of the Closing Date (as though made then and as
though the Closing Date were substituted for the date of 

  

 12 

 
this Agreement throughout this Section 4), except as set forth in the disclosure schedule delivered by Sellers to Buyer on the date hereof and
initialed by the Parties (the “Disclosure Schedule”). Nothing in the Disclosure Schedule shall be deemed adequate to disclose an exception to a representation or warranty made herein, however, unless the Disclosure Schedule
identifies the exception with reasonable particularity and describes the relevant facts in reasonable detail. Without limiting the generality of the foregoing, the mere listing (or inclusion of a copy) of a document or other item shall not be deemed
adequate to disclose an exception to a representation or warranty made herein (unless the representation or warranty has to do with the existence of the document or other item itself). The Disclosure Schedule will be arranged in paragraphs
corresponding to the lettered and numbered paragraphs contained in this Section 4. 
 (a) Organization, Qualification, and
Corporate Power. Each Company and its Subsidiaries is a corporation or limited liability company, as the case may be, duly organized, validly existing, and in good standing under the laws of the jurisdiction of its incorporation or
formation, as the case may be. Each Company and its Subsidiaries is duly authorized to conduct business and is in good standing under the laws of each jurisdiction where such qualification is required. Each Company and its Subsidiaries has full
power and authority and all licenses, permits, and authorizations necessary to carry on the businesses in which it is engaged and to own and use the properties owned and used by it. Section 4(a) of the Disclosure Schedule lists the
members, stockholders, managers, directors and officers of each Company and its Subsidiaries. Sellers have delivered to Buyer correct and complete copies of the organizational documents (articles of organization or incorporation and operating
agreement or bylaws of each Company and its Subsidiaries (as amended to date)). The minute books (containing the records of meetings of the members, the stockholders, the managers, the directors and the membership and shareholder record books of
each Company and its Subsidiaries are correct and complete. Neither Company nor any of its Subsidiaries is in default under or in violation of any provision of its organizational documents. 
 (b) Capitalization. The Interests constitute all of the issued and outstanding Interests in Pittsfield, DWHI and DWHII and the entire
equity and ownership interests in such entities. All of the issued and outstanding Interests have been duly authorized, are validly issued, fully paid, and nonassessable, and are held of record and beneficially by the Sellers. There are no
outstanding or authorized options, warrants, purchase rights, subscription rights, conversion rights, exchange rights, or other contracts or commitments that could require a Company to issue, sell, or otherwise cause to become outstanding any of its
membership, ownership or other equity interests. There are no outstanding or authorized interest appreciation, phantom interest, profit participation, or similar rights with respect to a Company. There are no voting trusts, proxies, or other
agreements or understandings with respect to the voting of the interests of a Company. 
 (c) Noncontravention. Neither the
execution and the delivery of this Agreement, nor the consummation of the transactions contemplated hereby, will (i) violate any constitution, statute, regulation, rule, injunction, judgment, order, decree, ruling, charge, or other restriction
of any government, governmental agency, or court to which any of the Companies and its Subsidiaries is subject or any provision of the charter or bylaws of any of the Companies and its Subsidiaries or (ii) conflict with, result in a breach of,
constitute a default under, result in the acceleration of, create in any party the right to accelerate, terminate, modify, or cancel, or require any notice under any agreement, contract, lease, license, instrument, or other arrangement to which any
of the Companies and its Subsidiaries is a party or by which it is bound or to which any of its assets is subject (or result in the imposition of any Lien upon any of its assets). To the Knowledge of the Sellers, except as otherwise required herein,
none of the Companies and its Subsidiaries needs to give any notice to, make any filing with, or obtain any authorization, consent, or approval of any government or governmental agency in order for the Parties to consummate the transactions
contemplated by this Agreement. 
  

 13 

 (d) Brokers’ Fees. None of the Companies and its Subsidiaries has any Liability or
obligation to pay any fees or commissions to any broker, finder, or agent with respect to the transactions contemplated by this Agreement. 
 (e) Title to Assets. Each Company and its Subsidiaries has good and marketable title to, or a valid leasehold interest in, the properties and assets used by them in the Business, located on their premises, or shown on the Most
Recent Balance Sheet or acquired after the date thereof, free and clear of all Liens, except for properties and assets disposed of in the Ordinary Course of Business since the date of the Most Recent Balance Sheet and liens that will be released at
Closing. 
 (f) Subsidiaries. Section 4(f) of the Disclosure Schedule sets forth for each Subsidiary of each Company
(i) its name and jurisdiction of incorporation, (ii) the number of shares of authorized capital stock of each class of its capital stock, (iii) the number of issued and outstanding shares of each class of its capital stock, the names
of the holders thereof, and the number of shares held by each such holder, and (iv) the number of shares of its capital stock held in treasury. All of the issued and outstanding shares of capital stock of each Subsidiary of a Company have been
duly authorized and are validly issued, fully paid, and nonassessable. No Company or one or more of its Subsidiaries holds of record and owns beneficially all of the outstanding shares of each Subsidiary of such Company, free and clear of any
restrictions on transfer (other than restrictions under the Securities Act and state securities laws), Taxes, Liens, options, warrants, purchase rights, contracts, commitments, equities, claims, and demands. There are no outstanding or authorized
options, warrants, purchase rights, subscription rights, conversion rights, exchange rights, or other contracts or commitments that could require a Company and its Subsidiaries to sell, transfer, or otherwise dispose of any capital stock of any of
its Subsidiaries or that could require any Subsidiary of a Company to issue, sell, or otherwise cause to become outstanding any of its own capital stock. There are no outstanding interest appreciation, phantom stock, profit participation, or similar
rights with respect to any Subsidiary of a Company. There are no voting trusts, proxies, or other agreements or understandings with respect to the voting of any interests of any Subsidiary of each Company. No Company and its Subsidiaries controls
directly or indirectly or has any direct or indirect equity participation in any corporation, partnership, trust, or other business association which is not a Subsidiary of each Company. Except for the Subsidiaries set forth in
Section 4(f) of the Disclosure Schedule, no Company nor any of its Subsidiaries owns or has any right to acquire, directly or indirectly, any outstanding capital stock of, or other equity interests in, any Person. 
 (g) Financial Statements. Attached hereto as Exhibit C are the following financial statements (collectively the “Financial
Statements”): (i) Reviewed balance sheets and statements of income, changes in shareholders’ equity and cash flow as of and for the fiscal years ended March 31, 2003 and March 31, 2004 for each entity which owned and
operated the Restaurants (ii) unaudited consolidated and consolidating balance sheets and statements of income, changes in stockholders’ equity, and cash flow as of and for the gap period between March 29, 2004 to the beginning of the
“Most Recent Financial Year End” (as defined below) for each entity which owned and operated the Restaurants, expressly including all information and source documents necessary for independent accountants to bridge the gap for this time
frame; (iii) unaudited consolidated and consolidating balance sheets and statements of income, changes in shareholders’ equity and cash flow as of and for the fiscal year ended December 31, 2005 (the “Most Recent Fiscal Year
End”) for each Company and its Subsidiaries; (iv) unaudited consolidated and consolidating balance sheets and statements of income, changes in stockholders’ equity, and cash flow (the “Most Recent Financial
Statements”) as of and for the month ended July 31, 2006 (the “Most Recent Fiscal Month End”) for each Company and its Subsidiaries; and (v) copies of all source documents and financial information from which the
financial statements itemized in sections (i) through (iv) above were derived and sufficient to enable independent accountants to derive audited financial numbers. The Financial Statements (including the notes thereto) have been prepared
in accordance with GAAP applied on a consistent basis throughout the periods covered thereby, present 

  

 14 

 
fairly the financial condition of each Company and its Subsidiaries as of such dates and the results of operations of each Company and its Subsidiaries for
such periods, are correct and complete, are consistent with the books and records of each Company and its Subsidiaries (which books and records are correct and complete). 
 (h) Events Subsequent to Most Recent Fiscal Year End. Since the Most Recent Fiscal Year End, there has not been any Material Adverse Change. Without limiting the generality of the foregoing, since that
date: 
 (i) none of the Companies and its Subsidiaries has sold, leased, transferred, or assigned any of its assets, tangible or intangible,
other than for a fair consideration in the Ordinary Course of Business; 
 (ii) none of the Companies and its Subsidiaries has entered into
any agreement, contract, lease, or license (or series of related agreements, contracts, leases, and licenses) either involving more than $10,000 or outside the Ordinary Course of Business; 
 (iii) no party (including each Company and any of its Subsidiaries) has accelerated, terminated, modified, or cancelled any agreement, contract, lease, or
license (or series of related agreements, contracts, leases, and licenses) involving more than $10,000 to which each Company or any of its Subsidiaries is a party or by which any of them is bound; 
 (iv) none of the Companies and its Subsidiaries has imposed any Liens upon any of its assets, tangible or intangible; 
 (v) none of the Companies and its Subsidiaries has made any capital expenditure (or series of related capital expenditures) outside the Ordinary Course of
Business; 
 (vi) none of the Companies and its Subsidiaries has made any capital investment in, any loan to, or any acquisition of the
securities or assets of, any other Person (or series of related capital investments, loans, and acquisitions) either involving more than $10,000 or outside the Ordinary Course of Business; 
 (vii) none of the Companies and its Subsidiaries has issued any note, bond, or other debt security or created, incurred, assumed, or guaranteed any
indebtedness for borrowed money or capitalized lease obligation either involving more than $10,000 singly or $25,000 in the aggregate; 
 (viii) none of the Companies and its Subsidiaries has delayed or postponed the payment of accounts payable and other Liabilities outside the Ordinary Course of Business; 
 (ix) none of the Companies and its Subsidiaries has cancelled, compromised, waived, or released any right or claim (or series of related rights and
claims) either involving more than $10,000 or outside the Ordinary Course of Business; 
 (x) except as set forth in
Section 4(h)(x) of the Disclosure Schedule, none of the Companies and its Subsidiaries has transferred, assigned, or granted any license or sublicense of any rights under or with respect to any Intellectual Property; 
 (xi) there has been no change made or authorized in the organizational documents of any Company or its Subsidiaries except as to the change in ownership
of Subsidiary from AMRESCO Commercial Finance, LLC as the original sole shareholder to DWHI as the current sole shareholder; 
  

 15 

 (xii) none of the Companies and its Subsidiaries has issued, sold, or otherwise disposed of any of its
membership or equity interests, or granted any options, warrants, or other rights to purchase or obtain (including upon conversion, exchange, or exercise) any of its membership or other equity interests; 
 (xiii) none of the Companies and its Subsidiaries has declared, set aside, or paid any dividend or made any distribution with respect to its membership or
other equity interests (whether in cash or in kind) or redeemed, purchased, or otherwise acquired any of its membership or other equity interests except for periodic payments to the Sellers which are required by the servicing agreement between
Sellers and AMRESCO with respect to the Borrowers; 
 (xiv) none of the Companies and its Subsidiaries has experienced any damage,
destruction, or loss (whether or not covered by insurance) to its property; 
 (xv) none of the Companies and its Subsidiaries has made any
loan to, or entered into any other transaction with, any of its directors, officers, and employees outside the Ordinary Course of Business; 
 (xvi) none of the Companies and its Subsidiaries has entered into any employment contract or collective bargaining agreement, written or oral, or modified the terms of any existing such contract or agreement; 
 (xvii) none of the Companies and its Subsidiaries has granted any increase in the base compensation of any of its directors, officers, and employees
outside the Ordinary Course of Business; 
 (xviii) none of the Companies and its Subsidiaries has adopted, amended, modified, or terminated
any bonus, profit sharing, incentive, severance, or other plan, contract, or commitment for the benefit of any of its directors, officers, and employees (or taken any such action with respect to any other Employee Benefit Plan); 
 (xix) none of the Companies and its Subsidiaries has made any other change in employment terms for any of its managers, officers, and employees outside
the Ordinary Course of Business; 
 (xx) none of the Companies and its Subsidiaries has made or pledged to make any charitable or other
capital contribution outside the Ordinary Course of Business; 
 (xxi) there has not been any other material occurrence, event, incident,
action, failure to act, or transaction outside the Ordinary Course of Business involving any of the Companies or its Subsidiaries except as provided in Section 4(h)(xxi) of the Disclosure Schedule; 
 (xxii) none of the Companies and its Subsidiaries has discharged a material Liability or Lien outside the Ordinary Course of Business; 
 (xxiii) none of the Companies and its Subsidiaries has made any loans or advances of money; 
 (xxiv) none of the Companies and its Subsidiaries has disclosed any Confidential Information; and 
  

 16 

 (xxv) none of the Companies and its Subsidiaries has committed to any of the foregoing. 
 (i) Undisclosed Liabilities. None of the Companies and its Subsidiaries has any Liability (and to the Knowledge of the Sellers there is no
Basis for any present or future action, suit, proceeding, hearing, investigation, charge, complaint, claim, or demand against any of them giving rise to any Liability), except for (i) Liabilities set forth on the face of the Most Recent Balance
Sheet (rather than in any notes thereto) and (ii) Liabilities which have arisen after the Most Recent Fiscal Month End in the Ordinary Course of Business (none of which results from, arises out of, relates to, is in the nature of, or was caused
by any material breach of contract, breach of warranty, tort, infringement, or violation of law). 
 (j) Legal Compliance. To
the Knowledge of the Sellers, each Company, its Subsidiaries, and their respective predecessors and Affiliates has complied with all applicable material laws (including rules, regulations, codes, plans, injunctions, judgments, orders, decrees,
rulings, and charges thereunder and including the Foreign Corrupt Practices Act, 15 U.S.C. 78dd-1 et seq.) of federal, state, local, and foreign governments (and all agencies thereof), and no action, suit, proceeding, hearing, investigation, charge,
complaint, claim, demand, or notice has been filed or commenced against any of them alleging any failure so to comply. 
 (k) Tax
Matters. 
 (i) Each of the Companies and its Subsidiaries has filed all Tax Returns that it was required to file under applicable
laws and regulations. All such Tax Returns were correct and complete in all respects and have been prepared in substantial compliance with all applicable laws and regulations. All Taxes due and owing by a Company and its Subsidiaries (whether or not
shown on any Tax Return) have been paid. No Company or any of its Subsidiaries currently is the beneficiary of any extension of time within which to file any Tax Return. No claim has ever been made by an authority in a jurisdiction where any of the
Companies and its Subsidiaries does not file Tax Returns that it is or may be subject to taxation by that jurisdiction. There are no Liens for Taxes (other than Taxes not yet due and payable) upon any of the assets of Company or any of its
Subsidiaries. 
 (ii) Each of the Companies and its Subsidiaries has withheld and paid all Taxes required to have been withheld and paid in
connection with any amounts paid or owing to any employee, independent contractor, creditor, manager, member or other third party. 
 (iii) No
Seller or manager, director, shareholder, member or officer (or employee responsible for Tax matters) of a Company or its Subsidiaries expects any authority to assess any additional Taxes for any period for which Tax Returns have been filed. No
foreign, federal, state, or local tax audits or administrative or judicial Tax proceedings are pending or being conducted with respect to a Company or any of its Subsidiaries. No Company nor any of its Subsidiaries has received from any foreign,
federal, state, or local taxing authority (including jurisdictions where the Company or its Subsidiaries have not filed Tax Returns) any (i) written notice indicating an intent to open an audit or other review, (ii) request for information
related to Tax matters, or (iii) notice of deficiency or proposed adjustment for any amount of Tax proposed, asserted, or assessed by any taxing authority against a Company or any of its Subsidiaries. 
 (iv) Neither Company nor any of its Subsidiaries has waived any statute of limitations in respect of Taxes or agreed to any extension of time with respect
to a Tax assessment or deficiency. 
  

 17 

 (v) No Company nor any of its Subsidiaries is a party to any material agreement, contract, arrangement or
plan that has resulted or would result, separately or in the aggregate, in the payment of (i) any “excess parachute payment” within the meaning of Code Section 280G (or any corresponding provision of state, local or foreign Tax
law) and (ii) any amount that will not be fully deductible as a result of Code 162(m) (or any corresponding provision of state, local or foreign Tax law). No Company nor any of its Subsidiaries has been a United States real property holding
corporation within the meaning of Code Section 897(c)(2) during the applicable period specified in Code Section 897(c)(1)(A)(ii). Each Company and its Subsidiaries has disclosed on its federal income Tax Returns all positions taken therein
that could give rise to a substantial understatement of federal income Tax within the meaning of Code Section 6662. No Company or any of its Subsidiaries is a party to or bound by any Tax allocation or sharing agreement. No Company or any of
its Subsidiaries (A) has been a member of an Affiliated Group filing a consolidated federal income Tax Return (other than a group the common parent of which was Company) or (B) has any Liability for the Taxes of any Person (other than the
Company and its Subsidiaries) under Treasury Regulation Section 1.1502-6 (or any similar provision of state, local, or foreign law), as a transferee or successor, by contract, or otherwise. 
 (vi) Section 4(k) of the Disclosure Schedule sets forth the following information with respect to each of the Companies and its Subsidiaries
as of the most recent practicable date: (A) the basis of the Company or Subsidiary in its assets; (B) the amount of any unused investment or other credit, unused foreign tax, or excess charitable contribution allocable to the Company or
Subsidiary; and (C) the amount of any deferred gain or loss allocable to the Company or Subsidiary arising out of any intercompany transaction. 
 (vii) The unpaid Taxes of a Company and its Subsidiaries (A) did not, as of the Most Recent Fiscal Month End, exceed the reserve for Tax Liability (rather than any reserve for deferred Taxes established to reflect timing differences
between book and Tax income) set forth on the face of the Most Recent Balance Sheet (rather than in any notes thereto) and (B) do not exceed that reserve as adjusted for the passage of time through the Closing Date in accordance with the past
custom and practice of a Company and its Subsidiaries in filing their Tax Returns. Since the date of the Most Recent Balance Sheet, neither Company nor any of its Subsidiaries has incurred any liability for Taxes arising from extraordinary gains or
losses, as that term is used in GAAP, outside the Ordinary Course of Business consistent with past custom and practice. 
 (viii) None of the
Companies and its Subsidiaries will be required to include any item of income in, or exclude any item of deduction from, taxable income for any taxable period (or portion thereof) ending after the Closing Date as a result of any: (A) change in
method of accounting for a taxable period ending on or prior to the Closing Date; (B) “closing agreement” as described in Code Section 7121 (or any corresponding or similar provision of state, local or foreign income Tax law)
executed on or prior to the Closing Date; (C) intercompany transactions or any excess loss account described in Treasury Regulations under Code Section 1502 (or any corresponding or similar provision of state, local or foreign income Tax
law); (D) installment sale or open transaction disposition made on or prior to the Closing Date; or (E) prepaid amount received on or prior to the Closing Date. 
 (ix) None of the Companies nor any Subsidiary has (nor has any predecessor of such Company nor any Subsidiary or Person acquired by such Company nor any Subsidiary) participated in a “reportable transaction”
within the meaning of Treasury Regulation Section 1.6011-4(b), excepting those transactions and arrangements which may qualify as reportable transactions solely due to confidentiality provisions. If any Company or any Subsidiary (or any
predecessor of the Company or any Subsidiary or Person acquired by the Company or any Subsidiary) has entered into any transaction such that, if the treatment claimed by it were to be disallowed, the transaction would constitute a substantial
understatement of federal income tax within the meaning of Code Section 6662, then it has either 

  

 18 

 
(x) substantial authority for the tax treatment of such transaction or (y) disclosed on its Tax Return the relevant facts affecting the tax treatment of
such transaction. 
 (l) Real Property. 
 (i) Section 4(l)(i) of the Disclosure Schedule sets forth the address and description of each parcel of Owned Real Property. With respect to each parcel of Owned Real Property: 
 (A) DWHII has good and marketable indefeasible fee simple title, free and clear of all Liens, except Permitted Encumbrances; 
 (B) except as set forth in Section 4(l)(i)(B) of the Disclosure Schedule, none of Company or its Subsidiaries has leased or otherwise granted
to any Person the right to use or occupy such Owned Real Property or any portion thereof; and 
 (C) there are no outstanding options, rights
of first offer or rights of first refusal to purchase such Owned Real Property or any portion thereof or interest therein. 
 (ii)
Section 4(l)(ii) of the Disclosure Schedule sets forth the address of each parcel of Leased Real Property, and a true and complete list of all Leases for each such Leased Real Property (including the date and name of the parties to such
Lease document). Each Company and its Subsidiaries has delivered to Buyer a true and complete copy of each such Lease document, and in the case of any oral Lease, a written summary of the material terms of such Lease. Except as set forth in
Section 4(l)(ii) of the Disclosure Schedule, with respect to each of the Leases: 
 (A) such Lease is legal, valid, binding,
enforceable and in full force and effect; 
 (B) the transaction contemplated by this Agreement does not require the consent of any other
party to such Lease (except for those Leases for which Lease Consents (as hereinafter defined) are obtained), will not result in a breach of or default under such Lease, and will not otherwise cause such Lease to cease to be legal, valid, binding,
enforceable and in full force and effect on identical terms following the Closing; 
 (C) none of a Company’s or its Subsidiaries’
possession and quiet enjoyment of the Leased Real Property under such Lease has been disturbed and there are no disputes with respect to such Lease; 
 (D) none of the Companies, its Subsidiaries or to the Knowledge of Sellers any other party to the Lease, is in breach or default under such Lease, and to the Knowledge of the Sellers no event has occurred or
circumstance exists which, with the delivery of notice, the passage of time or both, would constitute such a breach or default, or permit the termination, modification or acceleration of rent under such Lease; 
 (E) no security deposit or portion thereof deposited with respect to such Lease has been applied in respect of a breach or default under such Lease which
has not been redeposited in full; 
 (F) none of the Companies or its Subsidiaries owes, or will owe in the future, any brokerage commissions
or finder’s fees with respect to such Lease; 
  

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 (G) the other party to such Lease is not an Affiliate of, and otherwise does not have any economic
interest in, any Company or any of its Subsidiaries; 
 (H) none of the Companies or its Subsidiaries has subleased, licensed or otherwise
granted any Person the right to use or occupy such Leased Real Property or any portion thereof; 
 (I) none of the Companies or its
Subsidiaries has collaterally assigned or granted any other Lien in such Lease or any interest therein; and 
 (J) there are no Liens on the
estate or interest created by such Lease. 
 (iii) The Leased Real Property identified in Section 4(l)(ii) of the Disclosure
Schedule (collectively, the “Real Property”), comprises all of the leased real property used or intended to be used in, or otherwise related to, the Companies’ and Subsidiaries’ Business; and none of the Companies or
Subsidiaries is a party to any agreement or option to purchase any real property or interest therein. 
 (iv) To the Knowledge of the Sellers,
all buildings, structures, fixtures, building systems and equipment, and all components thereof, including the roof, foundation, load-bearing walls and other structural elements thereof, heating, ventilation, air conditioning, mechanical,
electrical, plumbing and other building systems, environmental control, remediation and abatement systems, sewer, storm and waste water systems, irrigation and other water distribution systems, parking facilities, fire protection, security and
surveillance systems, and telecommunications, computer, wiring and cable installations, included in the Real Property (the “Improvements”) are in good condition and repair and sufficient for the operation of the Companies’ and
Subsidiaries’ business. To the Knowledge of the Sellers, there are no structural deficiencies or latent defects affecting any of the Improvements and there are no facts or conditions affecting any of the Improvements which would, individually
or in the aggregate, interfere in any respect with the use or occupancy of the Improvements or any portion thereof in the operation of the Companies’ or Subsidiaries’ business as currently conducted thereon. 
 (v) There is no condemnation, expropriation or other proceeding in eminent domain, pending or threatened, affecting any parcel of Real Property or any
portion thereof or interest therein. There is no injunction, decree, order, writ or judgment outstanding, nor any claims, litigation, administrative actions or similar proceedings, or to the Knowledge of the Sellers pending or threatened, relating
to the ownership, lease, use or occupancy of the Real Property or any portion thereof, or the operation of the Companies’ or Subsidiaries’ business as currently conducted thereon. 
 (vi) To the Knowledge of the Sellers, the Real Property is in material compliance with all applicable building, zoning, subdivision, health and safety and
other land use laws, including the Americans with Disabilities Act of 1990, as amended, and all insurance requirements affecting the Real Property (collectively, the “Real Property Laws”), and the current use and occupancy of the
Real Property and operation of Companies’ and its Subsidiaries’ business thereon do not violate any Real Property Laws. Neither Company nor any of its Subsidiaries has received any notice of violation of any Real Property Law and there is
no basis for the issuance of any such notice or the taking of any action for such violation. There is no pending or anticipated change in any Real Property Law that will materially impair the ownership, lease, use or occupancy of any Real Property
or any portion thereof in the continued operation of the Companies’ or its Subsidiaries’ business as currently conducted thereon. 
 (vii) To the Knowledge of the Sellers, each parcel of Real Property has direct vehicular and pedestrian access to a public street adjoining the Real Property, or has vehicular and pedestrian access to a public street via an insurable,
permanent, irrevocable and appurtenant easement benefiting such parcel of Real Property, and such access is not dependent on any land or other real 

  

 20 

 
property interest which is not included in the Real Property. To the Knowledge of the Sellers, none of the Improvements or any portion thereof is dependent
for its access, use or operation on any land, building, improvement or other real property interest which is not included in the Real Property. 
 (viii) To the Knowledge of the Sellers, all water, oil, gas, electrical, steam, compressed air, telecommunications, sewer, storm and waste water systems and other utility services or systems for the Real Property have been installed and are
operational and sufficient for the operation of the Companies’ or Subsidiaries’ business as currently conducted thereon. To the Knowledge of the Sellers, each such utility service enters the Real Property from an adjoining public street or
valid private easement in favor of the supplier of such utility service or appurtenant to such Real Property, and is not dependent for its access, use or operation on any land, building, improvement or other real property interest which is not
included in the Real Property. 
 (ix) All certificates of occupancy, permits, licenses, franchises, approvals and authorizations
(collectively, the “Real Property Permits”) of all governmental authorities, boards of fire underwriters, associations or any other entity having jurisdiction over the Real Property which are required or appropriate to use or occupy
the Real Property or operate Companies’ or Subsidiaries’ business as currently conducted thereon, have been issued and are in full force and effect. Section 4(l)(ix) of the Disclosure Schedule lists all material Real Property
Permits held by any of the Companies and its Subsidiaries with respect to each parcel of Real Property. The Companies have delivered to Buyer a true and complete copy of all Real Property Permits. None of the Companies or its Subsidiaries has
received any notice from any governmental authority or other entity having jurisdiction over the Real Property threatening a suspension, revocation, modification or cancellation of any Real Property Permit and to the Knowledge of the Sellers there
is no basis for the issuance of any such notice or the taking of any such action. 
 (x) To the Knowledge of the Sellers, the classification
of each parcel of Real Property under applicable zoning laws, ordinances and regulations permits the use and occupancy of such parcel and the operation of a Company’s and its Subsidiaries’ business as currently conducted thereon, and
permits the Improvements located thereon as currently constructed, used and occupied. To the Knowledge of the Sellers, there are sufficient parking spaces, loading docks and other facilities at such parcel to comply with such zoning laws, ordinances
and regulations. To the Knowledge of the Sellers, the Companies’ and Subsidiaries’ use or occupancy of the Real Property or any portion thereof or the operation of the Companies’ or Subsidiaries’ business as currently conducted
thereon is not dependent on a “permitted non-conforming use” or “permitted non-conforming structure” or similar variance, exemption or approval from any governmental authority. 
 (xi) To the Knowledge of the Sellers, the current use and occupancy of the Real Property and the operation of the Companies’ and Subsidiaries’
business as currently conducted thereon do not violate any easement, covenant, condition, restriction or similar provision in any instrument of record or other unrecorded agreement affecting such Real Property (the “Encumbrance
Documents”). None of Sellers, the Companies or their Subsidiaries has received any notice of violation of any Encumbrance Documents, and to the Knowledge of the Sellers there is no basis for the issuance of any such notice or the taking of
any action for such violation. 
 (xii) To the Knowledge of the Sellers, none of the Improvements encroach on any land which is not included
in the Real Property or on any easement affecting such Real Property, or violate any building lines or set-back lines, and there are no encroachments onto any of the Real Property, or any portion thereof, which encroachment would interfere with the
use or occupancy of such Real Property or the continued operation of the Companies’ or Subsidiaries’ business as currently conducted thereon. 
  

 21 

 (xiii) To the Knowledge of the Sellers, each parcel of Real Property is a separate lot for real estate
tax and assessment purposes, and no other real property is included in such tax parcel. There are no Taxes, assessments, fees, charges or similar costs or expenses imposed by any governmental authority, association or other entity having
jurisdiction over the Real Property (collectively, the “Real Estate Impositions”) with respect to any Real Property or portion thereof which are delinquent. There is no pending or to the Knowledge of the Sellers threatened increase
or special assessment or reassessment of any Real Estate Impositions for such parcel. 
 (xiv) None of the Real Property or any portion
thereof is located in a flood hazard area (as defined by the Federal Emergency Management Agency). 
 (m) Intellectual
Property. 
 (i) Each Company and its Subsidiaries owns and possesses or has the right to use pursuant to a valid and enforceable,
written license, sublicense, agreement, or permission all Intellectual Property necessary for the operation of the businesses of each such Company and its Subsidiaries as presently conducted. Each item of Intellectual Property owned or used by a
Company or any of its Subsidiaries immediately prior to the Closing hereunder will be owned or available for use by such Company or its Subsidiaries on identical terms and conditions immediately subsequent to the Closing hereunder. Each of the
Companies and its Subsidiaries has taken all necessary action to maintain and protect each item of Intellectual Property that it owns or uses. 
 (ii) To the Knowledge of Sellers, none of the Companies and its Subsidiaries has interfered with, infringed upon, misappropriated, or otherwise come into conflict with any Intellectual Property rights of third parties, and none of Sellers
and the members, shareholders, directors and managers (and employees with responsibility for Intellectual Property matters) of any Company or any Subsidiaries has ever received any charge, complaint, claim, demand, or notice alleging any such
interference, infringement, misappropriation, or violation (including any claim that such Company or any of its Subsidiaries must license or refrain from using any Intellectual Property rights of any third party). To the Knowledge of any of Sellers
and the members, shareholders, directors and managers (and employees with responsibility for Intellectual Property matters) of either Company and its Subsidiaries, no third party has interfered with, infringed upon, misappropriated, or otherwise
come into conflict with any Intellectual Property rights of such Company or any of its Subsidiaries. 
 (iii) Section 4(m)(iii) of
the Disclosure Schedule identifies each patent or registration that has been issued to either Company or any of its Subsidiaries with respect to any of its Intellectual Property, identifies each pending patent application or application for
registration which such Company or any of its Subsidiaries has made with respect to any of its Intellectual Property, and identifies each license, sublicense, agreement, or other permission which such Company or any of its Subsidiaries has granted
to any third party with respect to any of its Intellectual Property (together with any exceptions). Sellers have delivered to Buyer correct and complete copies of all such patents, registrations, applications, licenses, sublicenses, agreements, and
permissions (as amended to date) and have made available to Buyer correct and complete copies of all other written documentation evidencing ownership and prosecution (if applicable) of each such item. Section 4(m)(iii) of the Disclosure
Schedule also identifies each material unregistered trademark, service mark, trade name, corporate name or Internet domain name, computer software item (other than commercially available off-the-shelf software purchased or licensed for less than a
total cost of One Thousand Dollars ($1,000) in the aggregate) and each material unregistered copyright used by either Company or any of its Subsidiaries in connection with any of its businesses. With respect to each item of Intellectual Property
required to be identified in Section 4(m)(iii) of the Disclosure Schedule: 
  

 22 

 (A) one of the Companies and its Subsidiaries owns and possesses all right, title, and interest in and
to the item, free and clear of any Lien, license, or other restriction or limitation regarding use or disclosure; 
 (B) the item is not
subject to any outstanding injunction, judgment, order, decree, ruling, or charge; 
 (C) no action, suit, proceeding, hearing,
investigation, charge, complaint, claim, or demand is pending or, to the Knowledge of any of Sellers and the members and managers (and employees with responsibility for Intellectual Property matters) of such Company and its Subsidiaries, is
threatened which challenges the legality, validity, enforceability, use, or ownership of the item, and there are no grounds for the same; 
 (D) neither Company nor any of its Subsidiaries has ever agreed to indemnify any Person for or against any interference, infringement, misappropriation, or other conflict with respect to the item; and 
 (iv) No Company or Subsidiary uses any Intellectual Property of a third party pursuant to license, sublicense, agreement, or permission (other than
commercially available off-the-shelf software purchased or licensed for less than a total cost of One Thousand Dollars ($1,000) in the aggregate). 
 (v) To the Knowledge of any of Sellers and the members, shareholders, directors and managers (and employees with responsibility for Intellectual Property matters) of each Company and its Subsidiaries: (A) none of such Company and its
Subsidiaries has in the past nor will interfere with, infringe upon, misappropriate, or otherwise come into conflict with, any Intellectual Property rights of third parties as a result of the continued operation of its businesses as presently
conducted; (B) there are no facts that indicate a likelihood of any of the foregoing; and (C) no notices regarding any of the foregoing (including, without limitation, any demands or offers to license any Intellectual Property from any
third party) have been received. 
 (vi) Sellers have taken all necessary and desirable action to maintain and protect all of the Intellectual
Property of each Company and its Subsidiaries and will continue to maintain and protect all of the Intellectual Property of each Company and its Subsidiaries so as not to materially adversely affect the validity or enforceability thereof.

 (vii) Each Company and Subsidiaries have complied in all material respects with and are presently in compliance in all material respects
with all foreign, federal, state, local, governmental (including, but not limited to, the Federal Trade Commission and State Attorneys General), administrative or regulatory laws, regulations, guidelines and rules applicable to any Intellectual
Property and each Company and Subsidiaries shall take all steps necessary to ensure such compliance until Closing. 
 (n) Tangible
Assets. The Companies and the Subsidiaries own or lease all buildings, machinery, equipment, and other tangible assets necessary for the conduct of the Business as presently conducted. To the Knowledge of the Sellers, each such tangible
asset is free from defects (patent and latent), has been maintained in accordance with normal industry practice, is in good operating condition and repair (subject to normal wear and tear), and is suitable for the purposes for which it presently is
used. 
 (o) Inventory. The inventory of Companies and its Subsidiaries consists of raw materials and supplies, all of which is
merchantable and fit for the purpose for which it was procured. The value at which Inventory is carried on the Most Recent Balance Sheet reflects the normal inventory valuation 

  

 23 

 
policy of Sellers, in accordance with GAAP and on a basis consistent with that of preceding periods, of stating inventory at the lower of cost or market
value. There has been no change in inventory valuation standards or methods with respect to the inventory of the Business since May 31, 2005. The quantities of any kind of inventory are reasonable in the current circumstances of the Business.

 (p) Contracts. Section 4(p) of the Disclosure Schedule lists the following contracts and other agreements to
which either Company or any of its Subsidiaries is a party: 
 (i) any agreement (or group of related agreements) for the lease of personal
property to or from any Person providing for lease payments in excess of $25,000 per annum; 
 (ii) any agreement (or group of related
agreements) for the purchase or sale of raw materials, commodities, supplies, products, or other personal property, or for the furnishing or receipt of services, the performance of which will extend over a period of more than one year, result in a
material loss to any of the Companies and its Subsidiaries, or involve consideration in excess of $25,000; 
 (iii) any agreement concerning a
partnership or joint venture; 
 (iv) any agreement (or group of related agreements) under which it has created, incurred, assumed, or
guaranteed any indebtedness for borrowed money, or any capitalized lease obligation, in excess of $25,000 or under which it has imposed a Lien on any of its assets, tangible or intangible; 
 (v) any agreement concerning confidentiality or noncompetition; 
 (vi) any agreement with any of Sellers and their Affiliates (other than one of the Companies and its Subsidiaries); 
 (vii) any profit sharing, interest option, interest purchase, interest appreciation, deferred compensation, severance, or other material plan or arrangement for the benefit of its current or former members, managers, officers, and
employees; 
 (viii) any collective bargaining agreement; 
 (ix) any agreement for the employment of any individual on a full-time, part-time, consulting, or other basis providing annual compensation in excess of $50,000 or providing severance benefits; 
 (x) any agreement under which it has advanced or loaned any amount to any of its members, managers, officers, or employees outside the Ordinary Course of
Business; 
 (xi) any agreement under which the consequences of a default or termination could have a Material Adverse Effect; 
 (xii) any agreement under which either Company or any of its Subsidiaries has advanced or loaned any other Person amounts in the aggregate exceeding
$25,000; or 
 (xiii) any other agreement (or group of related agreements) the performance of which involves consideration in excess of
$25,000. 
  

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 Sellers have delivered to Buyer a correct and complete copy of each written agreement (as amended to date) listed in
Section 4(p) of the Disclosure Schedule. With respect to each such agreement: (A) the agreement is legal, valid, binding, enforceable, and in full force and effect; (B) the agreement will continue to be legal, valid, binding,
enforceable, and in full force and effect on identical terms following the consummation of the transactions contemplated hereby; (C) no party is in breach or default, and to the Knowledge of Sellers no event has occurred which with notice or
lapse of time would constitute a breach or default, or permit termination, modification, or acceleration, under the agreement; and (D) no party has repudiated any provision of the agreement. 
 (q) Notes and Accounts Receivable. All notes and accounts receivable of each Company and its Subsidiaries are reflected properly on their
books and records, are valid receivables subject to no setoffs or counterclaims, are current and collectible, and will be collected in accordance with their terms at their recorded amounts, subject only to the reserve for bad debts set forth on the
face of the Most Recent Balance Sheet (rather than in any notes thereto) as adjusted for the passage of time through the Closing Date in accordance with the past custom and practice of each Company and its Subsidiaries. 
 (r) Powers of Attorney. There are no outstanding powers of attorney executed on behalf of a Company or any of its Subsidiaries. 

(s) Insurance. Section 4(s) of the Disclosure Schedule sets forth the following information with respect to each insurance
policy (including policies providing property, casualty, liability, and workers’ compensation coverage and bond and surety arrangements) to which either Company or any of its Subsidiaries has been a party, a named insured, or otherwise the
beneficiary of coverage: 
 (i) the name, address, and telephone number of the agent; 
 (ii) the name of the insurer, the name of the policyholder, and the name of each covered insured; 
 (iii) the policy number and the period of coverage; 
 (iv) the scope (including an indication of whether the coverage was on a claims made, occurrence, or other basis) and amount (including a description of how deductibles and ceilings are calculated and operate) of coverage; and 

(v) a description of any retroactive premium adjustments or other loss-sharing arrangements. 
 With respect to each such insurance policy: (A) the policy is legal, valid, binding, enforceable, and in full force and effect; (B) the policy will continue to
be legal, valid, binding, enforceable, and in full force and effect on identical terms following the consummation of the transactions contemplated hereby; (C) no Company, or any of its Subsidiaries, nor any other party to the policy is in
breach or default (including with respect to the payment of premiums or the giving of notices), and no event has occurred which, with notice or the lapse of time, would constitute such a breach or default, or permit termination, modification, or
acceleration, under the policy; and (D) no party to the policy has repudiated any provision thereof. Each Company and its Subsidiaries has been covered by insurance in scope and amount customary and reasonable for the businesses in which it has
engaged during the aforementioned period. Section 4(s) of the Disclosure Schedule describes any self-insurance arrangements affecting Company or any of its Subsidiaries. 
  

 25 

 (t) Litigation. Section 4(t) of the Disclosure Schedule sets forth each
instance in which a Company or any of its Subsidiaries (i) is subject to any outstanding injunction, judgment, order, decree, ruling, or charge or (ii) is a party or, to the Knowledge of any of Sellers and the members, shareholders,
directors and managers (and employees with responsibility for litigation matters) of each Company and its Subsidiaries, is threatened to be made a party to any action, suit, proceeding, hearing, or investigation of, in, or before any court or
quasi-judicial or administrative agency of any federal, state, local, or foreign jurisdiction or before any arbitrator. None of the actions, suits, proceedings, hearings, and investigations set forth in Section 4(t) of the Disclosure
Schedule could result in any Material Adverse Change. None of Sellers and the members and managers (and employees with responsibility for litigation matters) of a Company and its Subsidiaries has any reason to believe that any such action, suit,
proceeding, hearing, or investigation may be brought or threatened against either Company or any of its Subsidiaries or that there is any Basis for the foregoing. 
 (u) Reserved. 
 (v) Liability. None of the Companies and its Subsidiaries has
any Liability (and to the Knowledge of Sellers there is no Basis for any present or future action, suit, proceeding, hearing, investigation, charge, complaint, claim, or demand against any of them giving rise to any Liability) arising out of any
injury to individuals or property as a result of the ownership, possession, or use of any product sold or delivered by either Company or any of its Subsidiaries. 
 (w) Employees. Section 4(w) of the Disclosure Schedule sets forth: the name, current annual compensation rate (including bonus and commissions), title, current base salary rate, accrued
bonus, accrued sick leave, accrued severance pay and accrued vacation benefits or pay of each present employee of each Company and Subsidiaries organizational charts of each Company and Subsidiaries; collective bargaining, union or other employee
association agreements; employment, managerial, advisory and consulting agreements; employee confidentiality or other agreements protecting proprietary processes, formulae or information; any employee handbook(s); any reports and/or plans prepared
or adopted pursuant to the Equal Employment Opportunity Act of 1972, as amended, and the amount of any unfunded retirement liabilities, including medical coverage, arising under any Employee Benefit Plan. To the Knowledge of the Sellers and the
members, shareholders, directors and managers (and employees with responsibility for employment matters) of each Company and its Subsidiaries, no executive, key employee, or group of employees has any plans to terminate employment with either
Company or its Subsidiaries. None of the Companies and its Subsidiaries is a party to or bound by any collective bargaining agreement, nor has any of them experienced any strikes, grievances, claims of unfair labor practices, or other collective
bargaining disputes. To the Knowledge of the Sellers, none of the Companies and its Subsidiaries has committed any unfair labor practice. None of Sellers and the members and managers (and employees with responsibility for employment matters) of
either Company and its Subsidiaries has any Knowledge of any organizational effort presently being made or threatened by or on behalf of any labor union with respect to employees of either Company or any of its Subsidiaries. 
 (x) Employee Benefits. 
 (i)
Section 4(x) of the Disclosure Schedule lists each Employee Benefit Plan that each Company or any of its Subsidiaries maintains, to which each Company or any of its Subsidiaries contributes or has any obligation to contribute, or with
respect to which each Company or any of its Subsidiaries has any Liability or potential Liability. 
 (A) Each such Employee Benefit Plan
(and each related trust, insurance contract, or fund) has been maintained, funded and administered in accordance with the terms of such 

  

 26 

 
Employee Benefit Plan and the terms of any applicable collective bargaining agreement and complies in form and in operation in all respects with the
applicable requirements of ERISA, the Code, and other applicable laws. 
 (B) All required reports and descriptions (including Form 5500
annual reports, summary annual reports, and summary plan descriptions) have been timely filed and/or distributed in accordance with the applicable requirements of ERISA and the Code with respect to each such Employee Benefit Plan. The requirements
of COBRA have been met with respect to each such Employee Benefit Plan and each Employee Benefit Plan maintained by an ERISA Affiliate which is an Employee Welfare Benefit Plan subject to COBRA. 
 (C) All contributions (including all employer contributions and employee salary reduction contributions) that are due have been made within the time
periods prescribed by ERISA and the Code to each such Employee Benefit Plan that is an Employee Pension Benefit Plan and all contributions for any period ending on or before the Closing Date which are not yet due have been made to each such Employee
Pension Benefit Plan or accrued in accordance with the past custom and practice of each Company and its Subsidiaries. All premiums or other payments for all periods ending on or before the Closing Date have been paid with respect to each such
Employee Benefit Plan that is an Employee Welfare Benefit Plan. 
 (D) Each such Employee Benefit Plan which is intended to meet the
requirements of a “qualified plan” under Code Section 401(a) has received a determination from the Internal Revenue Service that such Employee Benefit Plan is so qualified, and nothing has occurred since the date of such determination
that could adversely affect the qualified status of any such Employee Benefit Plan. All such Employee Benefit Plans have been or will be timely amended for the requirements of the Tax legislation commonly known as “GUST” and
“EGTRRA” and have been or will be submitted to the Internal Revenue Service for a favorable determination letter on the GUST requirements within the remedial amendment period prescribed by GUST. 
 (E) There have been no Prohibited Transactions with respect to any such Employee Benefit Plan or any Employee Benefit Plan maintained by an ERISA
Affiliate. No Fiduciary has any Liability for breach of fiduciary duty or any other failure to act or comply in connection with the administration or investment of the assets of any such Employee Benefit Plan. No action, suit, proceeding, hearing,
or investigation with respect to the administration or the investment of the assets of any such Employee Benefit Plan (other than routine claims for benefits) is pending or, to the Knowledge of any of Sellers and the members and managers (and
employees with responsibility for employee benefits matters) of each Company and its Subsidiaries, threatened. None of Sellers and the members and managers (and employees with responsibility for employee benefits matters) of either Company and its
Subsidiaries has any Knowledge of any Basis for any such action, suit, proceeding, hearing, or investigation. 
 (F) Sellers have delivered
to Buyer correct and complete copies of the plan documents and summary plan descriptions, the most recent determination letter received from the Internal Revenue Service, the most recent annual report (Form 5500, with all applicable attachments),
and all related trust agreements, insurance contracts, and other funding arrangements which implement each such Employee Benefit Plan. 
 (ii)
Neither Company, nor any of its Subsidiaries, nor any ERISA Affiliate contributes to, has any obligation to contribute to, or has any Liability under or with respect to any Employee Pension Benefit Plan that is a “defined benefit plan” (as
defined in ERISA Section 3(35)). No asset of either Company or any of its Subsidiaries is subject to any Lien under ERISA or the Code. 
  

 27 

 (iii) Neither Company, its Subsidiaries, or any ERISA Affiliate contributes to, has any obligation to
contribute to, or has any Liability (including withdrawal liability as defined in ERISA Section 4201) under or with respect to any Multiemployer Plan. 
 (iv) None of the Companies and its Subsidiaries maintains, contributes to or has an obligation to contribute to, or has any Liability or potential Liability with respect to, any Employee Welfare Benefit Plan providing
health or life insurance or other welfare-type benefits for current or future retired or terminated members, managers, officers or employees (or any spouse or other dependent thereof) of either Company or any of its Subsidiaries other than in
accordance with COBRA. 
 (y) Guaranties. Neither Company nor any of its Subsidiaries is a guarantor or otherwise is liable for
any Liability or obligation (including indebtedness) of any other Person. 
 (z) Environmental, Health, and Safety Matters.

 (i) Each Company, its Subsidiaries, and their respective predecessors and Affiliates has complied and is in compliance with all
Environmental, Health, and Safety Requirements. 
 (ii) Without limiting the generality of the foregoing, each Company, its Subsidiaries, and
their respective Affiliates has obtained and complied with, and is in compliance with, all permits, licenses and other authorizations that are required pursuant to Environmental, Health, and Safety Requirements for the occupation of its facilities
and the operation of its business; a list of all such permits, licenses and other authorizations is set forth on Section 4(z)(ii) of the Disclosure Schedule. 
 (iii) No Company, or its Subsidiaries, or their respective predecessors or Affiliates has received any written or oral notice, report or other information regarding any actual or alleged violation of Environmental,
Health, and Safety Requirements, or any Liabilities or potential Liabilities, including any investigatory, remedial or corrective obligations, relating to any of them or its facilities arising under Environmental, Health, and Safety Requirements.

 (iv) Except as may be disclosed on the Phase I Environmental Assessments previously provided to Buyer by Sellers, to Sellers’
knowledge, none of the following exists at any property or facility owned or operated by either Company or its Subsidiaries: (1) underground storage tanks, (2) asbestos-containing material in any form or condition, (3) materials or
equipment containing polychlorinated biphenyls, or (4) landfills, surface impoundments, or disposal areas. 
 (v) No Company, or its
Subsidiaries or Affiliates has treated, stored, disposed of, arranged for or permitted the disposal of, transported, handled, or released any substance, including without limitation any hazardous substance, or owned or operated any property or
facility (and no such property or facility is contaminated by any such substance) in a manner that has given or would give rise to Liabilities, including any Liability for response costs, corrective action costs, personal injury, property damage,
natural resources damages or attorney fees, pursuant to the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended (“CERCLA”), the Solid Waste Disposal Act, as amended (“SWDA”) or
any other Environmental, Health, and Safety Requirements. 
 (vi) To the Knowledge of the Sellers, neither this Agreement nor the consummation
of the transaction that is the subject of this Agreement will result in any obligations for site investigation or cleanup, or notification to or consent of government agencies or third parties, pursuant to any of the so-called
“transaction-triggered” or “responsible property transfer” Environmental, Health, and Safety Requirements. 
  

 28 

 (vii) No Company, or its Subsidiaries or Affiliates has, either expressly or by operation of law, assumed
or undertaken any Liability, including without limitation any obligation for corrective or remedial action, of any other Person relating to Environmental, Health, and Safety Requirements. 
 (viii) To the Knowledge of Sellers, no facts, events or conditions relating to the past or present facilities, properties or operations of either Company,
its Subsidiaries or Affiliates will prevent, hinder or limit continued compliance with Environmental, Health, and Safety Requirements, give rise to any investigatory, remedial or corrective obligations pursuant to Environmental, Health, and Safety
Requirements, or give rise to any other Liabilities pursuant to Environmental, Health, and Safety Requirements, including without limitation any relating to onsite or offsite releases or threatened releases of hazardous materials, substances or
wastes, personal injury, property damage or natural resources damage. 
 (aa) Certain Business Relationships with Company and Its
Subsidiaries. None of the Sellers, their Affiliates, and employees or the Company’s and its Subsidiaries’ members, managers, officers or employees has been involved in any business arrangement or relationship with either Company or
any of its Subsidiaries within the past twelve (12) months, and none of the Sellers, their Affiliates and employees and neither the Company’s and its Subsidiaries’, members, managers, officers or employees owns any asset, tangible or
intangible, which is used in the business of either the Company or any of its Subsidiaries. 
 (bb) Suppliers. The attached
Section 4(bb) of the Disclosure Schedule lists each vendor, supplier, service provider and other similar business relation from whom each Company and Subsidiary purchased greater than $10,000 in goods and/or services, the amounts owing
to each such Person, and whether such amounts are past due. 
 (cc) Disclosure. To the best of Sellers’ Knowledge, the
representations and warranties contained in this Section 4 do not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements and information contained in this
Section 4 not misleading. 
 5. Pre-Closing Covenants. The Parties agree as follows with respect to the period between the
execution of this Agreement and the Closing. 
 (a) General. Each of the Parties will use his, her, or its reasonable best
efforts to take all action and to do all things necessary in order to consummate and make effective the transactions contemplated by this Agreement (including satisfaction, but not waiver, of the Closing conditions set forth in Section 7
below). 
 (b) Notices and Consents. To the extent it is the responsibility of Sellers’ hereunder, Sellers will cause each
Company and its Subsidiaries to give any notices to third parties, and will cause each Company and its Subsidiaries to use its reasonable best efforts to assist Buyer to obtain any third party consents referred to in Section 4(c) above,
the Lease Consents, and the items set forth on Section 5(b) of the Disclosure Schedule. Each of the Parties will (and Sellers will cause each Company and its Subsidiaries to) give any notices to, make any filings with, and use its
reasonable best efforts to obtain any authorizations, consents, and approvals of governments and governmental agencies in connection with the matters referred to in Section 3(a)(i), Section 3(b)(ii), and
Section 4(c) above. 
 (c) Operation of Business. Sellers will not cause or permit either Company or any of its
Subsidiaries to engage in any practice, take any action, or enter into any transaction outside the Ordinary 

  

 29 

 
Course of Business. Without limiting the generality of the foregoing, Sellers will not cause or permit either Company or any of its Subsidiaries to
(i) declare, set aside, or pay any dividend or make any distribution with respect to its membership or other equity interests or redeem, purchase, or otherwise acquire any of its membership or other equity interests, (ii) materially
increase the compensation paid to any employee of any Company or Subsidiary, (iii) enter any agreement, contract or arrangement that is material to the business of the Company and/or the Subsidiaries, (iv) incur any additional material
debt, or (v) otherwise engage in any practice, take any action, or enter into any transaction of the sort described in Section 4(h) above. 
 (d) Preservation of Business. Sellers will cause each Company and its Subsidiaries to keep its business and properties substantially intact, including its present operations, physical facilities, working
conditions, insurance policies, and relationships with lessors, licensors, suppliers, customers, and employees. 
 (e) Full
Access. Sellers will permit, and Sellers will cause each Company and its Subsidiaries to permit, representatives of Buyer (including legal counsel and accountants) to have full access at all reasonable times, and in a manner so as not to
interfere with the normal business operations of each Company and its Subsidiaries, to all premises, properties, personnel, books, records (including Tax records), contracts, and documents of or pertaining to each Company and its Subsidiaries.

 (f) Notice of Developments. Sellers will give prompt written notice to Buyer of any material adverse development causing a
breach of any of the representations and warranties in Section 4 above. Each Party will give prompt written notice to the others of any material adverse development causing a breach of any of his or its own representations and warranties
in Section 3 above. No disclosure by any Party pursuant to this Section 5(f), however, shall be deemed to amend or supplement the Disclosure Schedule or to prevent or cure any misrepresentation, breach of warranty, or breach
of covenant. 
 (g) Exclusivity. Until the expiration of thirty (30) days after execution of this Agreement, Sellers will
not (and Sellers will not cause or permit any Company or any of its Subsidiaries to) (i) solicit, initiate, or encourage the submission of any proposal or offer from any Person relating to the acquisition of any capital stock or other voting
securities, or any substantial portion of the assets, of either Company or any of its Subsidiaries (including any acquisition structured as a merger, consolidation, or share exchange) or (ii) participate in any discussions or negotiations
regarding, furnish any information with respect to, assist or participate in, or facilitate in any other manner any effort or attempt by any Person to do or seek any of the foregoing. Seller will notify Buyer immediately if any Person makes any
proposal, offer, inquiry, or contact with respect to any of the foregoing. 
 (h) Maintenance of Real Property. Seller will
cause each Company and its Subsidiaries to maintain the Real Property, including all of the Improvements, in substantially the same condition as of the date of this Agreement, ordinary wear and tear excepted, and shall not demolish or remove any of
the existing Improvements, or erect new improvements on the Real Property or any portion thereof, without the prior written consent of Buyer. 
 (i) Leases. Sellers will not cause or permit any of the Leases to be amended, modified, extended, renewed or terminated, nor shall either Company or its Subsidiaries enter into any new lease, sublease, license or other
agreement for the use or occupancy of any real property, without the prior written consent of Buyer. 
 (j) Title Insurance and
Surveys. Sellers will cause each Company and its Subsidiaries to use its best efforts to assist Buyer in obtaining the Title Commitments, Title Policies and Surveys in form 

  

 30 

 
and substance as set forth in Section 7 of this Agreement, within the time periods set forth therein, including removing from title any Liens or
encumbrances which are not Permitted Encumbrances. 
 (k) Tax Matters. Without the prior written consent of Buyer, no Company
or its Subsidiaries shall make or change any election, change an annual accounting period, adopt or change any accounting method, file any amended Tax Return, enter into any closing agreement, settle any Tax claim or assessment relating to such
Company or any of its Subsidiaries, surrender any right to claim a refund of Taxes, consent to any extension or waiver of the limitation period applicable to any Tax claim or assessment relating to such Company or any of its Subsidiaries, or take
any other similar action relating to the filing of any Tax Return or the payment of any Tax, if such election, adoption, change, amendment, agreement, settlement, surrender, consent or other action would have the effect of increasing the Tax
liability of such Company or any of its Subsidiaries for any period ending after the Closing Date or decreasing any Tax attribute of such Company or any of its Subsidiaries existing on the Closing Date. 
 (l) Payroll Expenses. Sellers shall cause each Company and Subsidiary to have paid as of the Closing Date all liabilities of either Company
to its employees or consultants, including, without limitation, all wages, salaries, bonuses, vacation pay and other direct and/or indirect compensation earned by or owed to any current or former employee, temporary employee or consultant of either
Company or Sellers prior to the Closing Date, whether or not otherwise payable by such date. 
 (m) Employment Taxes. Sellers
covenant and agree that, between the date hereof and the date upon which any employment tax contributions with respect to the Business become delinquent Sellers will cause each Company and Subsidiary to pay when due all contributions, interest and
penalties. 
 6. Post-Closing Covenants. The Parties agree as follows with respect to the period following the Closing. 
 (a) General. In case at any time after the Closing any further action is necessary or desirable to carry out the purposes of this
Agreement, each of the Parties will take such further action (including the execution and delivery of such further instruments and documents) as any other Party reasonably may request, all at the sole cost and expense of the requesting Party (unless
the requesting Party is entitled to indemnification therefor under Section 8 below). Each Seller acknowledges and agrees that from and after the Closing Buyer will be entitled to possession of all documents, books, records (including Tax
records), agreements, and financial data of any sort relating to each Company and its Subsidiaries. 
 (b) Litigation Support.
In the event and for so long as any Party actively is contesting or defending against any action, suit, proceeding, hearing, investigation, charge, complaint, claim, or demand in connection with (i) any transaction contemplated under this
Agreement or (ii) any fact, situation, circumstance, status, condition, activity, practice, plan, occurrence, event, incident, action, failure to act, or transaction on or prior to the Closing Date involving either Company or any of its
Subsidiaries, each of the other Parties will cooperate with it and its counsel in the contest or defense, make available their personnel, and provide such testimony and access to their books and records as shall be necessary in connection with the
contest or defense, all at the sole cost and expense of the contesting or defending Party (unless the contesting or defending Party is entitled to indemnification therefor under Section 8 below). 
 (c) Transition. Seller will not take any action that is designed or intended to have the effect of discouraging any lessor, licensor,
customer, supplier, or other business associate of either Company or any of its Subsidiaries from maintaining the same business relationships with such Company and its Subsidiaries after the Closing as it maintained with such Company and its
Subsidiaries prior to the 

  

 31 

 
Closing. Sellers will refer all customer inquiries relating to the businesses of each Company and its Subsidiaries to Buyer from and after the Closing.

 (d) Confidentiality. Each Seller will treat and hold as such all of the Confidential Information, refrain from using any of
the Confidential Information except in connection with this Agreement, and deliver promptly to Buyer or destroy, at the request and option of Buyer, all tangible embodiments (and all copies) of the Confidential Information which are in its
possession. In the event that Seller is requested or required pursuant to written or oral question or request for information or documents in any legal proceeding, interrogatory, subpoena, civil investigative demand, or similar process to disclose
any Confidential Information, such Seller will notify Buyer promptly of the request or requirement so that Buyer may seek an appropriate protective order or waive compliance with the provisions of this Section 6(d). If, in the absence of
a protective order or the receipt of a waiver hereunder, a Seller is, on the advice of counsel, compelled to disclose any Confidential Information to any tribunal or else stand liable for contempt, such Seller may disclose the Confidential
Information to the tribunal; provided, however, that such Seller shall use its reasonable best efforts to obtain, at the request of Buyer, an order or other assurance that confidential treatment will be accorded to such portion of the Confidential
Information required to be disclosed as Buyer shall designate. The foregoing provisions shall not apply to any Confidential Information which is generally available to the public immediately prior to the time of disclosure unless such Confidential
Information is so available due to the actions of either Seller (with respect to Confidential Information about either Company or either Seller) or Buyer (with respect to Confidential Information about Buyer). 
 (e) Reserved. 
 (f)
Reserved. 
 (g) Employee Benefits. Sellers hereby acknowledge and agree that the employee benefit obligations by
which Buyer and the Company and its Subsidiaries shall be bound, and which Buyer shall cause the Company and its Subsidiaries to honor, after the Closing Date shall consist of the obligations set forth in Exhibit D hereto. 
 (h) Sales and Use Taxes. Sellers covenant and agree that they will timely pay any and all state and local sales and use taxes and
transactions and use taxes (including any penalties and interest that are due or may accrue) which become due after the Closing Date but which derive from activities prior thereto. 
 (i) Handling of Prior Claims. Sellers covenant and agree to handle and resolve all claims, actions and suits brought by any Person which
relate to or arise out of the operation of the Business prior to the Closing Date (each, a “Prior Claim”), and shall cause its insurers to handle and resolve all Prior Claims, in each case in a manner consistent with the historical
policies and practices of Sellers. Section 6(i) of the Disclosure Schedule sets forth a list of all such Prior Claims of which Sellers have Knowledge as of the Closing Date. Sellers shall deliver monthly reports describing the status of
each Prior Claim to Buyer until all Prior Claims have been finally resolved. 
 7. Conditions to Obligation to Close. 
 (a) Conditions to Buyer’s Obligation. Buyer’s obligation to consummate the transactions to be performed by it in connection with
the Closing is subject to satisfaction of the following conditions: 
 (i) the representations and warranties set forth in
Section 3(a) and Section 4 above shall be true and correct in all material respects at and as of the Closing Date, except to the extent that 

  

 32 

 
such representations and warranties are qualified by terms such as “material” and “Material Adverse Effect,” in which case such
representations and warranties shall be true and correct in all respects at and as of the Closing Date; 
 (ii) Sellers shall have performed
and complied with all of their covenants hereunder in all material respects through the Closing, except to the extent that such covenants are qualified by terms such as “material” and “Material Adverse Effect,” in which
case Sellers shall have performed and complied with all of such covenants in all respects through the Closing; 
 (iii) each Company and its
Subsidiaries shall have procured all of the third party consents required to be obtained by them as specified in Section 5(b) above; 
 (iv) no action, suit, or proceeding shall be pending or threatened before any court or quasi-judicial or administrative agency of any federal, state, local, or foreign jurisdiction or before any arbitrator wherein an unfavorable injunction,
judgment, order, decree, ruling, or charge would (A) prevent consummation of any of the transactions contemplated by this Agreement, (B) cause any of the transactions contemplated by this Agreement to be rescinded following consummation,
(C) affect adversely the right of Buyer to own the Interests and to control each Company and its Subsidiaries, or (D) affect adversely the right of either Company or any of its Subsidiaries to own its assets and to operate its businesses
(and no such injunction, judgment, order, decree, ruling, or charge shall be in effect); 
 (v) Sellers shall have delivered to Buyer a
certificate to the effect that each of the conditions specified above in Section 7(a)(i)-(iv) is satisfied in all respects; 
 (vi) the Parties and each Company and its Subsidiaries shall have received all authorizations, consents, and approvals of governments and governmental agencies referred to in Section 3(a)(i), Section 3(b)(ii), and
Section 4(c) above; 
 (vii) Buyer shall have obtained on terms and conditions reasonably satisfactory to it all of the financing
it needs in order to consummate the transactions contemplated hereby and fund the working capital requirements of each Company and its Subsidiaries after the Closing; 
 (viii) all actions to be taken by the Sellers in connection with consummation of the transactions contemplated hereby and all certificates, opinions, instruments, and other documents required to effect the
transactions contemplated hereby shall be reasonably satisfactory in form and substance to Buyer; 
 (ix) On the Closing, a title insurance
company(s) satisfactory to Buyer (the “Title Company”) shall be unconditionally and irrevocably committed to issue (i) an ALTA Extended Coverage Policy of Title Insurance for each Owned Real Property, containing such
endorsements as Buyer may reasonably require, insuring DWHII that fee simple absolute title to the Owned Real Property is vested in DWHII, with liability limits as required by Buyer, subject only to the Permitted Encumbrances; and (ii) an ALTA
Extended Coverage Policy of Title Insurance for each Leased Real Property identified by Buyer (the "Material Leased Real Property"), containing endorsements as Buyer may reasonably require, insuring DWHI’s legal, valid, binding and
enforceable leasehold interest in each Leased Real Property, with liability limits as required by Buyer, subject only to the Permitted Encumbrances. It is acknowledged by the Parties that Buyer may accomplish the issuance of the ALTA Extended
Coverage Policy of Title Insurance for each Owned Real Property through appropriate endorsements to DWHII’s existing standard coverage owner’s policies of title insurance. Such policies of title insurance are referred to collectively
herein as the “Title Policies”; 
  

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 (x) Buyer shall have obtained, no later than ten days prior to the Closing, a survey for each Material
Leased Real Property, dated no earlier than the date of this Agreement, prepared by a licensed surveyor in the jurisdiction where the Real Property is located, satisfactory to Buyer, and conforming to such standards as the Title Company and Buyer
require as a condition to the removal of any survey exceptions from the Title Policies, and certified to Buyer, Buyer’s lender, and the Title Company, in a form and with a certification satisfactory to each of such parties (the
“Surveys”); the Surveys shall not disclose any encroachment from or onto any of the Real Property or any portion thereof or any other survey defect which has not been cured or insured over to Buyer’s reasonable satisfaction
prior to the Closing; and Sellers shall have paid or committed to pay all fees, costs and expenses with respect to the Surveys; 
 (xi) The
Parties shall have obtained a written consent for the assignment of each of the Leases (the “Lease Consents”), and, if requested by Buyer’s lender, Buyer shall have obtained a waiver of landlord liens, collateral assignment of
lease or leasehold mortgage from the landlord or other party whose consent thereto is required under such Lease, in form and substance satisfactory to Buyer and Buyer’s lender; 
 (xii) Buyer shall have obtained an estoppel certificate with respect to each of the Leases, dated no more than 30 days prior to the Closing Date, from the
other party to such Lease, in form and substance satisfactory to Buyer (the “Estoppel Certificates”); 
 (xiii) Buyer shall
have obtained a non-disturbance agreement with respect to each of the Leases for the Material Leased Real Property, in form and substance satisfactory to Buyer, from each lender encumbering any real property underlying the Leased Real Property for
such Lease (the “Non-Disturbance Agreements”); 
 (xiv) Each Seller shall deliver to Buyer a non-foreign affidavit dated as
of the Closing Date, sworn under penalty of perjury and in form and substance required under the Treasury Regulations issued pursuant to Code Section 1445 stating that such Seller is not a “Foreign Person” as defined in Code
Section 1445 (the “FIRPTA Affidavit”); 
 (xv) No damage or destruction or other change shall have occurred with respect
to any of the Real Property or any portion thereof that, individually or in the aggregate, would materially impair the use or occupancy of the Real Property or the operation of either Company’s or its Subsidiaries’ business as currently
conducted thereon; 
 (xvi) Sellers shall have delivered to Buyer copies of the articles of organization or incorporation of each Company and
each Subsidiary certified on or soon before the Closing Date by the Secretary of State (or comparable officer) of the jurisdiction of each such Person’s formation; 
 (xvii) Sellers shall have delivered to Buyer copies of the certificate of good standing of each Company and each Subsidiary issued on or soon before the Closing Date by the Secretary of State (or comparable officer)
of the jurisdiction of each such Person’s organization and of each jurisdiction in which each such Person is qualified to do business; 
 (xviii) Sellers shall have delivered to Buyer a certificate dated the Closing Date, in form and substance reasonably satisfactory to Buyer, as to (A) no amendments to the articles of organization of either Company since the date
specified in clause (xx) above; and (B) the operating agreement of each Company; 
  

 34 

 (xix) Buyer shall have satisfactorily completed its investigation of the Business, assets and financial
condition of each Company and its Subsidiaries in connection with the transactions contemplated hereby and shall have been satisfied with such results. Buyer shall have satisfactorily completed its investigation of any event or condition arising or
discovered after the date of this Agreement that could reasonably be expected to result in a failure of any of Buyer’s conditions hereunder to be fulfilled; 
 (xx) Buyer and its Lender shall have completed, to its satisfaction, an environmental inspection of the facilities of each Company and each Subsidiary, and Buyer shall not have discovered, either in the course of the
environmental inspection or at any time prior to the Closing Date, any actual or potential liabilities, contingent or otherwise, relating to environmental matters which might be asserted against either Company or any Subsidiary; 
 (xxi) Seller shall have delivered lien releases to clear all liens and security interests currently recorded in favor of Sellers with respect to the Owned
Real Property and Leased Real Property. 
 (xxii) On or prior to the Closing there shall not have been filed by or against Sellers a petition
in bankruptcy or a petition or answer seeking an assignment for the benefit of creditors, the appointment of a receiver, trustee, liquidation or dissolution or similar relief under the U.S. Bankruptcy Code or any state law, and there shall have been
no material change in the financial condition of Sellers. 
 (xxiii) Buyer shall have received copies of all temporary or permanent
certificates of approval or occupancy for the Improvements on each Parcel issued by the relevant governmental authorities and all other certifications, permits, and licenses issued by the relevant governmental authorities and all other approvals as
are necessary to occupy and use the Property for its intended use. 
 (xxiv) Buyer shall have obtained an as-built survey which shall not show
any defects, gaps, gores, encumbrances, easements, encroachments, rights of third parties or other defects or matters with respect to the Property which render title unmarketable or which differ from that shown on the Survey, other than the
Permitted Exceptions, and which shall not indicate any violations of any applicable building or zoning code. 
 (xxv) Buyer shall have
received evidence reasonably satisfactory to Buyer that water, sewer, electric and telephone utilities have been installed, enter each Property through streets dedicated to the public or public or private easements benefiting a Property and are
fully operational and are actually operating. 
 (xxvi) Buyer shall have received Phase-I reports verifying that there have been no violations
of environmental laws. 
 (xxvii) Buyer shall have received true and correct copies of all current property tax bills and assessment notices
pertaining to the Property. 
 (xxxiii) Buyer shall have received evidence that Sellers have complied with any applicable bulk sales or
similar laws in the state where each Property is located and that Sellers has given any notices (and/or paid any tax) required by local law to be given or paid. 
 (xxviii) There shall have been no Material Adverse Change in either Company’s financial condition, assets, liabilities (contingent or otherwise), results of operations, business or business prospects of the
Company since the Most Recent Balance Sheet Date; 
  

 35 

 (xxix) Buyer’s shall have received evidence that all of the insurance policies required to be
maintained by Tenant pursuant to each Lease are in full force and effect, and that Buyer and Buyer’s lender have been named as an additional insureds as required under the Leases. ; and 
 (xxx) Buyer shall have received executed supply agreements from the suppliers listed on Section 4(b)(b) of the Disclosure Schedule, in form
and substance reasonably satisfactory to Buyer. 
 Buyer may waive any condition specified in this Section 7(a) if it executes a
writing so stating at or prior to the Closing. 
 (b) Conditions to Sellers’ Obligation. The obligation of Sellers to
consummate the transactions to be performed by them in connection with the Closing is subject to satisfaction of the following conditions: 
 (i) the representations and warranties set forth in Section 3(b) above shall be true and correct in all material respects at and as of the Closing Date, except to the extent that such representations and warranties are qualified
by terms such as “material” and “Material Adverse Effect,” in which case such representations and warranties shall be true and correct in all respects at and as of the Closing Date; 
 (ii) Buyer shall have performed and complied with all of its covenants hereunder in all material respects through the Closing, except to the extent that
such covenants are qualified by terms such as “material” and “Material Adverse Effect,” in which case Buyer shall have performed and complied with all of such covenants in all respects through the Closing; 
 (iii) no action, suit, or proceeding shall be pending or threatened before any court or quasi-judicial or administrative agency of any federal, state,
local, or foreign jurisdiction or before any arbitrator wherein an unfavorable injunction, judgment, order, decree, ruling, or charge would (A) prevent consummation of any of the transactions contemplated by this Agreement or (B) cause any
of the transactions contemplated by this Agreement to be rescinded following consummation (and no such injunction, judgment, order, decree, ruling, or charge shall be in effect); 
 (iv) Buyer shall have delivered to Seller a certificate to the effect that each of the conditions specified above in
Section 7(b)(i)-(iii) is satisfied in all respects; 
 (v) the Parties and each Company, and its Subsidiaries shall have
received all authorizations, consents, and approvals of governments and governmental agencies referred to in Section 3(a)(i), Section 3(b)(ii), and Section 4(c) above; 
 (vi) Buyer shall have delivered the Note and Security Documents to Sellers; and 
 (vii) all actions to be taken by Buyer in connection with consummation of the transactions contemplated hereby, including the payment of the Purchase
Price, and all certificates, instruments, and other documents required to effect the transactions contemplated hereby will be reasonably satisfactory in form and substance to the Sellers. 
 The Sellers may waive any condition specified in this Section 7(b) if it executes a writing so stating at or prior to the Closing.

 (c) Fees and Costs. At Closing, Buyer shall be responsible for paying the cost of satisfying its due diligence and obtaining
any required consents (including governmental approvals related to liquor 

  

 36 

 
licenses and Real Property Permit, and the Lease Consents), and all mortgage, documentary, sales, use, stamp, registration and other such Taxes, and all
recording charges, charges for title work, and fees for the Title Policies (provided Buyer shall not be required to reimburse Sellers for their previously obtained standard coverage owner’s policies of title insurance previously obtained and
Phase I Environmental Assessments). Sellers shall be responsible for any transfer taxes or conveyance fees. 
 8. Remedies for Breaches of This
Agreement. 
 (a) Survival of Representations and Warranties. 
 All of the representations and warranties of Sellers contained in Sections 4(g)-(j), Sections 4(l)-(y), and Sections 4(aa)-(cc) above
shall survive the Closing hereunder (even if Buyer knew or had reason to know of any misrepresentation or breach of warranty at the time of Closing) and continue in full force and effect for a period of two (2) years thereafter. All of the
other representations and warranties of the Parties contained in this Agreement (including the representations and warranties of Sellers contained in Section 4(k) and Section 4(z) above) shall survive the Closing (even if the
damaged Party knew or had reason to know of any misrepresentation or breach of warranty at the time of Closing) and continue in full force and effect until the expiration of any applicable statutes of limitations (after giving effect to any
extensions or waivers) plus sixty (60) days. 
 (b) Indemnification Provisions for Buyer’s Benefit. 
 (i) In the event a Seller breaches (or in the event any third party alleges facts that, if true, would mean a Seller has breached) any of its
representations, warranties, and covenants contained herein (other than the representations and warranties in Section 3(a), and, provided that Buyer makes a written claim for indemnification against Sellers pursuant to
Section 12(g) below within the survival period (if there is an applicable survival period pursuant to Section 8(a) above), then Sellers, jointly and severably, shall be obligated to indemnify Buyer from and against the
entirety of any Adverse Consequences Buyer may suffer (including any Adverse Consequences Buyer may suffer after the end of any applicable survival period) resulting from, arising out of, relating to, in the nature of, or caused by the breach (or
the alleged breach); provided, however, that Sellers shall not have any obligation to indemnify Buyer from and against any Adverse Consequences resulting from, arising out of, relating to, in the nature of, or caused by the breach (or alleged
breach) of any representation or warranty of Sellers contained in Section 4(g)-(j), and Section 4(l)-(cc) above until Buyer has suffered Adverse Consequences by reason of all such breaches (or alleged breaches) in excess of a
$100,000 aggregate threshold (at which point Sellers will be obligated to indemnify Buyer from and against all such Adverse Consequences relating back to the first dollar); provided, however, further, that Sellers’ obligation to indemnify Buyer
from and against any Adverse Consequences resulting from, arising out of, relating to, in the nature of, or caused by the breach (or alleged breach) of any representation and warranty of Sellers contained in Section 4(g)-(j), and
Section 4(l)-(cc) shall in no event exceed the amount of One Million Dollars ($1,000,000). Provided, further that the amount of Sellers’ indemnification obligation for a breach of its representations and warranties contained in
Section 4(k) is governed by Section 9 below. 
 (ii) In the event a Seller breaches (or in the event any third party alleges facts
that, if true, would mean a Seller breached) any of its representations and warranties in Section 3(a) above, and provided that Buyer makes a written claim for indemnification against Sellers pursuant to Section 12(g) below
within the survival period (if there is an applicable survival period pursuant to Section 8(a) above), then Sellers, jointly and severally, shall indemnify Buyer from and against the entirety of any Adverse Consequences Buyer may suffer
(including any Adverse Consequences Buyer may suffer after the end of any applicable survival period) resulting from arising out of, relating to, in the nature of, or caused by the breach (or the alleged breach). 
  

 37 

 (c) Indemnification Provisions for Sellers’ Benefit. In the event Buyer breaches (or
in the event any third party alleges facts that, if true, would mean Buyer has breached) any of its representations, warranties, and covenants contained herein and, provided that Sellers make a written claim for indemnification against Buyer
pursuant to Section 12(g) below within such survival period (if there is an applicable survival period pursuant to Section 8(a) above), then Buyer shall indemnify Sellers from and against the entirety of any Adverse
Consequences suffered (including any Adverse Consequences suffered after the end of any applicable survival period) resulting from, arising out of, relating to, in the nature of, or caused by the breach (or the alleged breach). 
 (d) Matters Involving Third Parties. 
 (i) If any third party shall notify any Party (the “Indemnified Party”) with respect to any matter (a “Third Party Claim”) which may give rise to a claim for indemnification against any other Party (the
“Indemnifying Party”) under this Section 8, then the Indemnified Party shall promptly notify each Indemnifying Party thereof in writing; provided, however, that no delay on the part of the Indemnified Party in notifying
any Indemnifying Party shall relieve the Indemnifying Party from any obligation hereunder unless (and then solely to the extent) the Indemnifying Party thereby is prejudiced. 
 (ii) Any Indemnifying Party will have the right to defend the Indemnified Party against the Third Party Claim with counsel of its choice reasonably
satisfactory to the Indemnified Party so long as (A) the Indemnifying Party notifies the Indemnified Party in writing within fifteen (15) days after the Indemnified Party has given notice of the Third Party Claim that the Indemnifying
Party will indemnify the Indemnified Party from and against the entirety of any Adverse Consequences the Indemnified Party may suffer resulting from, arising out of, relating to, in the nature of, or caused by the Third Party Claim, (B) the
Indemnifying Party provides the Indemnified Party with evidence reasonably acceptable to the Indemnified Party that the Indemnifying Party will have the financial resources to defend against the Third Party Claim and fulfill its indemnification
obligations hereunder, (C) the Third Party Claim involves only money damages and does not seek an injunction or other equitable relief, (D) settlement of, or an adverse judgment with respect to, the Third Party Claim is not, in the good
faith judgment of the Indemnified Party, likely to establish a precedential custom or practice materially adverse to the continuing business interests or the reputation of the Indemnified Party, and (E) the Indemnifying Party conducts the
defense of the Third Party Claim actively and diligently. 
 (iii) So long as the Indemnifying Party is conducting the defense of the Third
Party Claim in accordance with Section 8(d)(ii) above, (A) the Indemnified Party may retain separate co-counsel at its sole cost and expense and participate in the defense of the Third Party Claim, (B) the Indemnified Party
will not consent to the entry of any judgment or enter into any settlement with respect to the Third Party Claim without the prior written consent of the Indemnifying Party (not to be withheld unreasonably), and (C) the Indemnifying Party will
not consent to the entry of any judgment or enter into any settlement with respect to the Third Party Claim without the prior written consent of the Indemnified Party (not to be withheld unreasonably). 
 (iv) In the event any of the conditions in Section 8(d)(ii) above is or becomes unsatisfied, however, (A) the Indemnified Party may
defend against, and consent to the entry of any judgment or enter into any settlement with respect to, the Third Party Claim in any manner it reasonably may deem appropriate (and the Indemnified Party need not consult with, or obtain any consent
from, any Indemnifying Party in connection therewith), (B) the Indemnifying Parties will reimburse the Indemnified Party promptly and periodically for the costs of defending against the Third Party Claim (including reasonable attorneys’
fees and expenses), and (C) the Indemnifying Parties will remain responsible for any Adverse Consequences the Indemnified Party may suffer resulting from, arising out of, relating to, in the nature of, or caused by the Third Party Claim to the
fullest extent provided in this Section 8. 
  

 38 

 (e) Determination of Adverse Consequences. All indemnification payments under this
Section 8 and Section 9(a) shall be deemed adjustments to the Purchase Price, and if payment is required to be made by Sellers to Buyer, the amount of such payments shall be an adjustment in the form of a credit against the
outstanding principal balance of the Note or if and to the extent the Note has been satisfied, Sellers shall remit a cash payment to Buyer within fifteen (15) days after determination of the amount. 
 9. Tax Matters. The following provisions shall govern the allocation of responsibility as between Buyer and Sellers for tax matters following the Closing
Date: 
 (a) Tax Indemnification. Sellers shall indemnify each Company, its Subsidiaries, Buyer, and each Buyer Affiliate and
hold them harmless from and against without duplication, any loss, claim, liability, expense, or other damage attributable to (i) a breach of Sellers’ representations and warranties contained in Section 4(k) above; (ii) all Taxes
(or the non-payment thereof) of each Company and its Subsidiaries for all Taxable periods ending on or before the Closing Date and the portion through the end of the Closing Date for any Taxable period that includes (but does not end on) the Closing
Date (“Pre-Closing Tax Period”), (iii) all Taxes of any member of an affiliated, consolidated, combined or unitary group of which either Company or any of its Subsidiaries (or any predecessor of any of the foregoing) is or was
a member on or prior to the Closing Date, including pursuant to Treasury Regulation Section 1.1502-6 or any analogous or similar state, local, or foreign law or regulation, and (iv) any and all Taxes of any person (other than a Company and
its Subsidiaries) imposed on either Company or any of its Subsidiaries as a transferee or successor, by contract or pursuant to any law, rule, or regulation, which Taxes relate to an event or transaction occurring before the Closing; provided,
however, that in the case of clauses (i), (ii), (iii) and (iv) above, Sellers shall be liable only to the extent that Buyers are required to pay any Taxes that are the responsibility of Sellers and only in the amount such Taxes exceed the
amount, if any, reserved for such Taxes (excluding any reserve for deferred Taxes established to reflect timing differences between book and Tax income) on the face of the Final Closing Balance Sheet (rather than in any notes thereto) and taken into
account in determining the Purchase Price Adjustment. Sellers shall reimburse Buyer for any Taxes of either Company or its Subsidiaries which are the responsibility of Sellers pursuant to this Section 9(a) in the manner set forth in
Section 8(e). 
 (b) Straddle Period. In the case of any Taxable period that includes (but does not end on) the Closing
Date (a “Straddle Period”), the amount of any Taxes based on or measured by income or receipts of either Company and its Subsidiaries for the Pre-Closing Tax Period shall be determined based on an interim closing of the books as of
the close of business on the Closing Date (and for such purpose, the Taxable period of any partnership or other pass-through entity in which either Company or any of its Subsidiaries holds a beneficial interest shall be deemed to terminate at such
time). 
 (c) Responsibility for Filing Tax Returns. Buyer shall prepare or cause to be prepared and file or cause to be filed
all Tax Returns for each Company and its Subsidiaries which are to be filed after the Closing Date other than income Tax Returns with respect to periods for which a consolidated, unitary or combined income Tax Return of Sellers will include the
operations of each Company and its Subsidiaries. Buyer shall permit Seller to review and comment on each such Tax Return described in the preceding sentence prior to filing. 
 (d) Cooperation on Tax Matters. 
 (i) Buyer, each Company and its Subsidiaries, and each Seller shall cooperate fully, as and to the extent reasonably requested by the other Party, in connection with the filing of Tax Returns pursuant to Section 9(c) and any
audit, litigation or other proceeding with respect to Taxes. Such cooperation shall include the retention and (upon the other Party’s request) the provision of records and 

  

 39 

 
information which are reasonably relevant to any such audit, litigation or other proceeding and making employees available on a mutually convenient basis to
provide additional information and explanation of any material provided hereunder. Each Company and its Subsidiaries and each Seller agree (A) to retain all books and records with respect to Tax matters pertinent to each Company and its
Subsidiaries relating to any taxable period beginning before the Closing Date until the expiration of the statute of limitations (and, to the extent notified by Buyer or either Seller, any extensions thereof) of the respective taxable periods, and
to abide by all record retention agreements entered into with any taxing authority, and (B) to give the other Party reasonable written notice prior to transferring, destroying or discarding any such books and records and, if the other Party so
requests, each Company and its Subsidiaries or each Seller, as the case may be, shall allow the other Party to take possession of such books and records. 
 (ii) Buyer and each Seller further agree, upon request, to use their best efforts to obtain any certificate or other document from any governmental authority or any other Person as may be necessary to mitigate, reduce
or eliminate any Tax that could be imposed (including, but not limited to, with respect to the transactions contemplated hereby). 
 (iii)
Buyer and each Seller further agree, upon request, to provide the other party with all information that either party may be required to report pursuant to Code Section 6043 and all Treasury Regulations promulgated thereunder. 
 (e) Tax Sharing Agreements. All Tax sharing agreements or similar agreements with respect to or involving each Company and its Subsidiaries
shall be terminated as of the Closing Date and, after the Closing Date, neither Company nor its Subsidiaries shall be bound thereby or have any liability thereunder. 
  

	10.	Reserved. 

  

	11.	Termination. 

 (a) Termination of
Agreement. Certain of the Parties may terminate this Agreement as provided below: 
 (i) Buyer and Sellers may terminate this
Agreement by mutual written consent at any time prior to the Closing; 
 (ii) Buyer may terminate this Agreement by giving written notice to
Sellers at any time prior to the Closing if Buyer is not reasonably satisfied with the results of its continuing business, legal, environmental, and accounting due diligence regarding each Company and its Subsidiaries; 
 (iii) Buyer may terminate this Agreement by giving written notice to Sellers at any time prior to the Closing (A) in the event any of Sellers has
breached any material representation, warranty, or covenant contained in this Agreement in any material respect, Buyer has notified Sellers of the breach, and the breach has continued without cure for a period of thirty (30) days after the
notice of breach or (B) if the Closing shall not have occurred on or before that date that is sixty (60) days from the date of this Agreement, by reason of the failure of any condition precedent under Section 7(a) hereof
(unless the failure results primarily from Buyer itself breaching any representation, warranty, or covenant contained in this Agreement); and 
 (iv) Sellers may terminate this Agreement by giving written notice to Buyer at any time prior to the Closing (A) in the event Buyer has breached any material representation, warranty, or covenant contained in this Agreement in any
material respect, any Seller has notified Buyer of the breach, 

  

 40 

 
and the breach has continued without cure for a period of ten (10) days after the notice of breach or (B) if the Closing shall not have occurred on
or before that date that is sixty (60) days from the date of this Agreement, by reason of the failure of any condition precedent under Section 7(b) hereof (unless the failure results primarily from any Seller breaching any
representation, warranty, or covenant contained in this Agreement). 
 (b) Effect of Termination. If any Party terminates this
Agreement pursuant to Section 11(a) above, all rights and obligations of the Parties hereunder shall terminate without any Liability of any Party to any other Party (except for any Liability of any Party then in breach). 
  

	12.	Miscellaneous. 

 (a) Press Releases and Public
Announcements. No Party shall issue any press release or make any public announcement relating to the subject matter of this Agreement prior to the Closing without the prior written approval of Buyer and Sellers; provided, however, that any
Party may make any public disclosure it believes in good faith is required by applicable law or any listing or trading agreement concerning its publicly-traded securities (in which case the disclosing Party will use its reasonable best efforts to
advise the other Parties prior to making the disclosure). 
 (b) No Third-Party Beneficiaries. This Agreement shall not confer
any rights or remedies upon any Person other than the Parties and their respective successors and permitted assigns. 
 (c) Entire
Agreement. This Agreement (including the documents referred to herein) constitutes the entire agreement among the Parties and supersedes any prior understandings, agreements, or representations by or among the Parties, written or oral, to
the extent they relate in any way to the subject matter hereof. 
 (d) Succession and Assignment. This Agreement shall be
binding upon and inure to the benefit of the Parties named herein and their respective successors and permitted assigns. No Party may assign either this Agreement or any of its rights, interests, or obligations hereunder without the prior written
approval of Buyer and Sellers; provided, however, that Buyer may (i) assign any or all of its rights and interests hereunder to one or more of its Affiliates and (ii) designate one or more of its Affiliates to perform its obligations
hereunder (in any or all of which cases Buyer nonetheless shall remain responsible for the performance of all of its obligations hereunder). 
 (e) Counterparts. This Agreement may be executed in one or more counterparts (including by means of facsimile), each of which shall be deemed an original but all of which together shall constitute one and the same instrument.

 (f) Headings. The section headings contained in this Agreement are inserted for convenience only and shall not affect in any
way the meaning or interpretation of this Agreement. 
 (g) Notices. All notices, requests, demands, claims, and other
communications hereunder will be in writing. Any notice, request, demand, claim, or other communication hereunder shall be deemed duly given (i) when delivered personally to the recipient, (ii) one business day after being sent to the
recipient by reputable overnight courier service (charges prepaid), (iii) upon electronic confirmation of good receipt by the recipient if sent by facsimile transmission or electronic mail, or (iv) four business days after being mailed to
the recipient by certified or registered mail, return receipt requested and postage prepaid, and addressed to the intended recipient as set forth below: 
  

 41 

			
		
	 If to the Sellers:
	  	c/o AMRESCO Commercial Finance, LLC
		  	412 E. Parkcenter Blvd., Suite 300
		  	Boise, Idaho 83706
		  	Attention: D. Craig Christensen
		  	Fax: (208) 333-2050
		
	 If to the Buyer:
	  	Paragon Steakhouse Restaurants, Inc.
		  	c/o Steakhouse Partners, Inc.
		  	10200 Willow Creek Road
		  	San Diego, CA 92131
		  	Attention: President/General Counsel
		  	Fax: (858) 586-1791
		
	 Copy to:
	  	Morrison & Foerster LLP
		  	12531 High Bluff Drive
		  	San Diego, CA 92130
		  	Attention: Christopher M. Forrester, Esq.
		  	Fax: (858) 720-5125

 Any Party may change the address to which notices, requests, demands, claims, and other communications hereunder
are to be delivered by giving the other Parties notice in the manner herein set forth. 
 (h) Governing Law. This Agreement
shall be governed by and construed in accordance with the domestic laws of the State of Delaware without giving effect to any choice or conflict of law provision or rule (whether of the State of Delaware or any other jurisdiction) that would cause
the application of the laws of any jurisdiction other than the State of Delaware. 
 (i) Amendments and Waivers. No amendment
of any provision of this Agreement shall be valid unless the same shall be in writing and signed by Buyer and each Seller. No waiver by any Party of any provision of this Agreement or any default, misrepresentation, or breach of warranty or covenant
hereunder, whether intentional or not, shall be valid unless the same shall be in writing and signed by the Party making such waiver nor shall such waiver be deemed to extend to any prior or subsequent default, misrepresentation, or breach of
warranty or covenant hereunder or affect in any way any rights arising by virtue of any prior or subsequent such default, misrepresentation, or breach of warranty or covenant. 
 (j) Severability. Any term or provision of this Agreement that is invalid or unenforceable in any situation in any jurisdiction shall not
affect the validity or enforceability of the remaining terms and provisions hereof or the validity or enforceability of the offending term or provision in any other situation or in any other jurisdiction. 
 (k) Expenses. Buyer, Seller, and each Company and its Subsidiaries will bear its own costs and expenses (including legal fees and expenses)
incurred in connection with this Agreement and the transactions contemplated hereby; provided, however, that Seller shall also bear the costs and expenses of each Company and its Subsidiaries (including all of their legal fees and expenses) in
connection with this Agreement and the transactions contemplated hereby in the event that the transactions contemplated by this Agreement are consummated. 
 (l) Construction. The Parties have participated jointly in the negotiation and drafting of this Agreement. In the event an ambiguity or question of intent or interpretation arises, this Agreement shall
be construed as if drafted jointly by the Parties and no presumption or burden of proof shall arise favoring or disfavoring any Party by virtue of the authorship of any of the provisions of this Agreement. Any 

  

 42 

 
reference to any federal, state, local, or foreign statute or law shall be deemed also to refer to all rules and regulations promulgated thereunder, unless
the context requires otherwise. The word “including” shall mean including without limitation. The Parties intend that each representation, warranty, and covenant contained herein shall have independent significance. If any Party has
breached any representation, warranty, or covenant contained herein in any respect, the fact that there exists another representation, warranty, or covenant relating to the same subject matter (regardless of the relative levels of specificity) which
the Party has not breached shall not detract from or mitigate the fact that the Party is in breach of the first representation, warranty, or covenant. 
 (m) Incorporation of Exhibits and Schedules. The Exhibits and Schedules identified in this Agreement are incorporated herein by reference and made a part hereof. 
 (n) Specific Performance. Each Party acknowledges and agrees that the other Parties would be damaged irreparably in the event any provision
of this Agreement is not performed in accordance with its specific terms or otherwise is breached, so that a Party shall be entitled to injunctive relief to prevent breaches of this Agreement and to enforce specifically this Agreement and the terms
and provisions hereof in addition to any other remedy to which such Party may be entitled, at law or in equity. In particular, the Parties acknowledge that the business of each Company and its Subsidiaries is unique and recognize and affirm that in
the event Sellers breach this Agreement, money damages would be inadequate and Buyer would have no adequate remedy at law, so that Buyer shall have the right, in addition to any other rights and remedies existing in its favor, to enforce its rights
and the other Parties’ obligations hereunder not only by action for damages but also by action for specific performance, injunctive, and/or other equitable relief. 
 (o) Submission to Jurisdiction. Each of the Parties submits to the jurisdiction of any state or federal court sitting in the State of Delaware, in any action or proceeding arising out of or relating to
this Agreement and agrees that all claims in respect of the action or proceeding may be heard and determined in any such court. Each Party also agrees not to bring any action or proceeding arising out of or relating to this Agreement in any other
court. Each of the Parties waives any defense of inconvenient forum to the maintenance of any action or proceeding so brought and waives any bond, surety, or other security that might be required of any other Party with respect thereto. 

(p) Governing Language. This Agreement has been negotiated and executed by the Parties in English. In the even any translation of this
Agreement is prepared for convenience or any other purpose, the provisions of the English version shall prevail. 
  

 43 

 IN WITNESS WHEREOF, the Parties hereto have executed this Agreement on the date first above written.

 BUYER: 
 Paragon Steakhouse Restaurants, Inc., 
 a Delaware corporation 
 By: /s/    Susan
Schulz-Claasen                                 
 Name: Susan
Schulz-Claasen                                     
 Title: President and General
Counsel                       
 SELLERS: 
 Delaware Trust Company, N.A. as Owner Trustee and Wells Fargo Bank, N.A. as Indenture
Trustee of the ACLC Business Loan Receivables Trust 1999-2; and Delaware Trust Company, N.A. as Owner Trustee and Wells Fargo Bank, N.A. as Indenture Trustee of the ACLC Business Loan Receivables Trust 2000-1, acting through AMRESCO Commercial
Finance, LLC, as servicing agent 
 By: /s/    D. Craig
Christensen                             
 D. Craig Christensen, Vice President 
  

 44Purchase of Sale Agreement

 EXHIBIT 10(uu) 
 PURCHASE AND SALE AGREEMENT 
 BETWEEN 
 THE FUND IX, FUND X, FUND XI, and REIT JOINT VENTURE 
 AS SELLER

 AND 
 SENTINEL
PROPERTIES, LLC, 
 AS PURCHASER 
 1315 WEST CENTURY DRIVE 
 LOUISVILLE, COLORADO 
 November 7, 2006 

 TABLE OF CONTENTS 
  

									
		 	 ARTICLE 1. DEFINITIONS
	  	1
		 	 ARTICLE 2. PURCHASE AND SALE
	  	6
		 		 	 2.1.
	  	 Agreement to Sell and Purchase the Property
	  	6
		 		 	 2.2.
	  	 Permitted Exceptions
	  	6
		 		 	 2.3.
	  	 Earnest Money
	  	6
		 		 	 2.4.
	  	 Purchase Price
	  	6
		 		 	 2.5.
	  	 Independent Contract Consideration
	  	7
		 		 	 2.6.
	  	 Closing
	  	7
		 	 ARTICLE 3. Purchaser's Inspection and Review Rights
	  	7
		 		 	 3.1.
	  	 Due Diligence Inspections
	  	7
		 		 	 3.2.
	  	 Deliveries by Seller to Purchaser; Purchaser's Access to Property Records of Seller
	  	8
		 		 	 3.3.
	  	 Condition of the Property
	  	10
		 		 	 3.4.
	  	 Title and Survey
	  	10
		 		 	 3.5.
	  	 Financing
	  	11
		 		 	 3.6.
	  	 Termination of Agreement
	  	12
		 		 	 3.7.
	  	 Confidentiality
	  	12
		 	 ARTICLE 4. Representations, Warranties AND OTHER AGREEMENTS
	  	13
		 		 	 4.1.
	  	 Representations and Warranties of Seller
	  	13
		 		 	 4.2.
	  	 Knowledge Defined
	  	16
		 		 	 4.3.
	  	 Covenants and Agreements of Seller
	  	16
		 		 	 4.4.
	  	 Representations and Warranties of Purchaser
	  	17
		 	 ARTICLE 5. CLOSING DELIVERIES, CLOSING COSTS AND PRORATIONS
	  	18
		 		 	 5.1.
	  	 Seller's Closing Deliveries
	  	18
		 		 	 5.2.
	  	 Purchaser's Closing Deliveries
	  	19
		 		 	 5.3.
	  	 Closing Costs
	  	19
		 		 	 5.4.
	  	 Prorations and Credits
	  	20
		 	 ARTICLE 6. CONDITIONS TO CLOSING
	  	21
		 		 	 6.1.
	  	 Conditions Precedent to Purchaser's Obligations
	  	21
		 		 	 6.2.
	  	 Conditions Precedent to Seller's Obligations
	  	22
		 	 ARTICLE 7. CASUALTY AND CONDEMNATION
	  	22
		 		 	 7.1.
	  	 Casualty
	  	22
		 		 	 7.2.
	  	 Condemnation
	  	23
		 	 ARTICLE 8. DEFAULT AND REMEDIES
	  	24
		 		 	 8.1.
	  	 Purchaser's Default
	  	24
		 		 	 8.2.
	  	 Seller's Default
	  	24
		 	 ARTICLE 9. ASSIGNMENT
	  	25
		 		 	 9.1.
	  	 Assignment
	  	25
		 	 ARTICLE 10. BROKERAGE COMMISSIONS
	  	25
		 		 	 10.1.
	  	 Broker
	  	25
		 	 ARTICLE 11. INDEMNIFICATION
	  	26
		 		 	 11.1.
	  	 Indemnification by Seller
	  	26
		 		 	 11.2.
	  	 Indemnification by Purchaser
	  	26
		 		 	 11.3.
	  	 Limitations on Indemnification
	  	26
		 		 	 11.4.
	  	 Survival
	  	26

							
		 	 11.5.
	  	 Indemnification as Sole Remedy
	  	27
	 ARTICLE 12. MISCELLANEOUS
	  	27
		 	 12.1.
	  	 Notices
	  	27
		 	 12.2.
	  	 Possession
	  	28
		 	 12.3.
	  	 Time Periods
	  	28
		 	 12.4.
	  	 Publicity
	  	28
		 	 12.5.
	  	 Discharge of Obligations
	  	28
		 	 12.6.
	  	 Severability
	  	28
		 	 12.7.
	  	 Construction
	  	29
		 	 12.8.
	  	 Sale Notification Letters
	  	29
		 	 12.9.
	  	 Access to Records Following Closing
	  	29
		 	 12.10.
	  	 General Provisions
	  	29
		 	 12.11.
	  	 Like-Kind Exchange
	  	29
		 	 12.12.
	  	 Attorney's Fees
	  	30
		 	 12.13.
	  	 Counterparts
	  	30
		 	 12.14.
	  	 Effective Agreement
	  	30

  

 ii 

 SCHEDULE OF EXHIBITS 
  

			
	Exhibit “A”	 	Description of Land
		
	Exhibit “B”	 	List of Personal Property
		
	Exhibit “C”	 	List of Existing Commission Agreements
		
	Exhibit “D”	 	Form of Escrow Agreement
		
	Exhibit “E”	 	Roof Specifications
		
	Exhibit “F”	 	Existing Surveys
		
	Exhibit “G”	 	Intentionally Deleted
		
	Exhibit “H”	 	Title Exceptions
		
	Exhibit “I”	 	Exception Schedule
		
	Exhibit “J”	 	List of Service Contracts
		
	Exhibit “K”	 	Property Tax Appeals

 SCHEDULE OF CLOSING DOCUMENTS 
  

			
	Schedule 1	 	Form of Assignment and Assumption of Service Contracts
		
	Schedule 2	 	Form of Bill of Sale to Personal Property
		
	Schedule 3	 	Form of General Assignment of Seller’s Interest in Intangible Property
		
	Schedule 4	 	Form of Seller’s Affidavit (for Purchaser’s Title Insurance Purposes)
		
	Schedule 5	 	Form of Seller’s Certificate (as to Seller’s Representations and Warranties)
		
	Schedule 6	 	Form of Seller’s FIRPTA Affidavit
		
	Schedule 7	 	Form of Purchaser’s Certificate (as to Purchaser’s Representations and Warranties)

 PURCHASE AND SALE AGREEMENT 
 1315 West Century Drive 
 Louisville, Colorado 
 THIS PURCHASE AND SALE AGREEMENT (the “Agreement”), made and entered into as of
the 7th day of November 2006 between THE FUND IX, FUND X, FUND XI, and REIT JOINT VENTURE, a Georgia joint
venture (“Seller”), and SENTINEL PROPERTIES, LLC, a Colorado limited liability company (together with its permitted successors and assigns, “Purchaser”). 
 W I T N E S S E T H: 
 WHEREAS, Seller
desires to sell its fee simple estate in certain improved real property commonly known as “1315 West Century Drive” located in Louisville, Boulder County, Colorado, together with certain related personal and intangible property, and
Purchaser desires to purchase such real, personal and intangible property; and 
 WHEREAS, the parties hereto desire to provide for said sale
and purchase on the terms and conditions set forth in this Agreement; 
 NOW, THEREFORE, for and in consideration of the premises, the mutual
covenants and agreements hereinafter set forth, and for other good and valuable consideration, the receipt, adequacy, and sufficiency of which are hereby acknowledged by the parties hereto, the parties hereto hereby covenant and agree as follows:

 ARTICLE 1. 
 DEFINITIONS 
 For purposes of this Agreement, each of the following capitalized terms shall have the meaning ascribed to
such terms as set forth below: 
 “Assignment and Assumption of Service Contracts” shall mean the form of assignment and
assumption of Service Contracts to be executed and delivered by Purchaser and Seller as to the Service Contracts at the Closing in the form attached hereto as SCHEDULE 1. 
 “Basket Limitation” shall mean an amount equal to Twenty Thousand and No/100 Dollars ($20,000.00 U.S.). 
 “Bill of Sale” shall mean the form of bill of sale to the Personal Property to be executed and delivered to Purchaser by Seller at the
Closing in the form attached hereto as SCHEDULE 2. 
 “Business Day” shall mean any day other than a
Saturday, Sunday or other day on which banking institutions in the State of Georgia are authorized by law or executive action to close. 
 “Cap Limitation” shall mean an amount equal to One Hundred Sixty-Six Thousand Five Hundred and No/100 Dollars ($166,500.00 U.S.). 

 “Closing” shall mean the consummation of the purchase and sale of the Property pursuant
to the terms of this Agreement. 
 “Closing Date” shall have the meaning ascribed thereto in Section 2.6 hereof.

 “Closing Documents” shall mean any certificate, instrument or other document delivered pursuant to this Agreement.

 “Due Diligence Deliveries” shall have the meaning ascribed thereto in Section 3.2 hereof. 
 “Due Diligence Material” shall have the meaning ascribed thereto in Section 3.7 hereof. 
 “Earnest Money” shall mean the Initial Earnest Money, together with all interest which accrues thereon as provided in
Section 2.3 hereof and in the Escrow Agreement. 
 “Effective Date” shall mean the date upon which Seller and
Purchaser shall have delivered a fully executed counterpart of this Agreement to the other, which date shall be inserted in the space provided on the cover page and page 1 hereof. For the purposes of determining the Effective Date, a facsimile
or other electronic signature shall be deemed an original signature. 
 “Environmental Law” shall mean any law, ordinance,
rule, regulation, order, judgment, injunction or decree now or hereafter relating to pollution or substances or materials which are considered to be hazardous or toxic, including, without limitation, the Resource Conservation and Recovery Act (42
U.S.C. § 6901 et seq.), the Comprehensive Environmental Response, Compensation and Liability Act (codified in various sections of 26 U.S.C., 33 U.S.C., 42 U.S.C. and 42 U.S.C. § 9601 et seq.), the Hazardous Materials
Transportation Act (49 U.S.C. § 1801 et seq.), the Clean Water Act (33 U.S.C. § 1251 et seq.), the Safe Drinking Water Act (21 U.S.C. § 349, 42 U.S.C. § 201 et seq. and § 300 et seq.), the Toxic
Substances Control Act (15 U.S.C. § 2061 et seq.), the Emergency Planning and Community Right to Know Act (42 U.S.C. § 1100 et seq.), the Clean Air Act (42 U.S.C. § 7401 et seq.), the Occupational Safety &
Health Act (29 U.S.C. § 655 et seq.), and any state and local environmental laws, all amendments and supplements to any of the foregoing and all regulations and publications promulgated or issued pursuant thereto. 
 “Escrow Agent” shall mean Chicago Title Insurance Company, at its office at 4170 Ashford Dunwoody Road, Suite 460, in Atlanta,
Georgia 30319. 
 “Escrow Agreement” shall mean that certain Escrow Agreement in the form attached hereto as
EXHIBIT “D” entered into among Seller, Purchaser and Escrow Agent with respect to the Earnest Money. 
 “Existing Survey” shall mean that certain survey with respect to the Land and Improvements, if any, more particularly described on EXHIBIT “F” attached hereto and made a part hereof. 
 “FIRPTA Affidavit” shall mean the form of FIRPTA Affidavit to be executed and delivered to Purchaser at Closing in the form attached
hereto as SCHEDULE 6. 
  

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 “General Assignment” shall mean an assignment by Seller of its interest in the
Intangible Property (being Seller’s interest in the Intangible Property being conveyed as a part of the Property), to be executed by Seller at Closing, substantially in the form attached hereto as SCHEDULE 3 and made a
part hereto, with such changes thereto as may be agreed upon by Seller and Purchaser to convey the Intangible Property. 
 “Hazardous
Substances” shall mean any and all pollutants, contaminants, toxic or hazardous wastes or any other substances that might pose a hazard to health or safety, the removal of which may be required or the generation, manufacture, refining,
production, processing, treatment, storage, handling, transportation, transfer, use, disposal, release, discharge, spillage, seepage or filtration of which is or shall be restricted, prohibited or penalized under any Environmental Law (including,
without limitation, lead paint, asbestos, urea formaldehyde foam insulation, petroleum and polychlorinated biphenyls). 
 “Improvements” shall mean all buildings, structures and improvements now or on the Closing Date situated on the Land, including without limitation, all parking areas and facilities, improvements and fixtures located on the
Land. 
 “Initial Earnest Money” shall mean the sum of Five Hundred Thousand and No/100 Dollars ($500,000.00 U.S.).

 “Inspection Period” shall mean the period expiring at 5:00 P.M. Eastern Standard Time on December 7, 2006.

 “Intangible Property” shall mean all intangible property, if any, owned by Seller and related to the Land, the
Improvements and the Personal Property, including, without limitation, the rights and interests, if any, in and to the following (to the extent assignable): (i) all assignable plans and specifications and other architectural and engineering
plans for the Land and Improvements; (ii) all assignable warranties and guaranties given or made in respect of the Improvements or Personal Property; (iii) all transferable consents, authorizations, variances or waivers, licenses, permits
and approvals from any governmental or quasi-governmental agency, department, board, commission, bureau or other entity or instrumentality solely in respect of the Land or Improvements; and (iv) all of the right, title and interest of Seller in
and to all assignable Service Contracts that Purchaser agrees to assume (or is deemed to have agreed to assume). 
 “Land”
shall mean that certain tract or parcel of real property located in Boulder County, Colorado, which is more particularly described on EXHIBIT “A” attached hereto, together with all rights, privileges and easements
appurtenant to said real property, and all right, title and interest, if any, of Seller in and to any land lying in the bed of any street, road, alley or right-of-way, open or closed, adjacent to or abutting the Land. 
 “Limited Warranty Deed” shall have the meaning ascribed thereto in Section 5.1(a). 
 “Losses” shall have the meaning ascribed thereto in Section 11.1 hereof. 
 “Monetary Objection” or “Monetary Objections” shall mean (a) any mortgage, deed to secure debt, deed of trust or
similar security instrument encumbering all or any part of the Property, (b) any mechanic’s, materialman’s or similar lien (unless resulting from any act or omission of Purchaser or any of its agents, contractors, representatives or
employees or any tenant of the Property), (c) the lien of ad valorem real or personal property taxes, assessments 

  

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and governmental charges affecting all or any portion of the Property which are delinquent, and (d) any judgment of record against Seller in the county
or other applicable jurisdiction in which the Property is located. 
 “Other Notices of Sale” shall have the meaning
ascribed thereto in Section 5.1(l) hereof. 
 “Permitted Exceptions” shall mean (a) liens for taxes,
assessments and governmental charges not yet due and payable or due and payable but not yet delinquent with respect to the Land and Improvements, (b) such state of facts as would be disclosed by a current survey of the Land, (c) the
matters set forth on EXHIBIT “H” attached hereto and made part hereof, and (d) such other easements, restrictions and encumbrances with respect to the Land and Improvements (including but not limited to matters
not on EXHIBIT “H” but disclosed in the Title Commitment issued with respect to the Land) that do not constitute Monetary Objections, and that are approved (or are deemed approved) by Purchaser in accordance with the
provisions of Section 3.4 hereof. 
 “Personal Property” shall mean all furniture (including common area and
interior landscaping items), carpeting, draperies, appliances, personal property (excluding any computer software which is either licensed to a Wells Affiliate or which such Wells Affiliate deems proprietary), machinery, apparatus and equipment
owned by Seller and currently used exclusively in the operation, repair and maintenance of the Real Property situated thereon, including, without limitation, those specific items of personal property (if any) more particularly described on
Exhibit “B” attached hereto and made a part hereof, and all non-confidential books, records and files (excluding any appraisals, budgets, strategic plans, internal analyses, information regarding the marketing of the Property for
sale, submissions relating to obtaining of corporate or partnership authorization, attorney and accountant work product, attorney-client privileged documents, or similar information in the possession or control of any Wells Affiliate or any Wells
Affiliate property manager which such Wells Affiliate reasonably deems proprietary) relating to the Land and Improvements. The Personal Property does not include any property owned by tenants, contractors or licensees, and shall be conveyed
to Purchaser subject to depletions, replacements and additions in the ordinary course of Seller’s business. 
 “Property” shall mean the Land, the Improvements, the Personal Property, and the Intangible Property. 
 “Purchase Price” shall be the amount specified in Section 2.4 hereof. 
 “Purchaser-Related
Entities” shall have the meaning ascribed thereto in Section 11.1 hereof. 
 “Purchaser Waived Breach”
shall have the meaning ascribed thereto in Section 11.3 hereof. 
 “Purchaser’s Broker” shall mean The
Colorado Group, Inc., a Colorado corporation. 
 “Purchaser’s Certificate” shall mean the form of certificate to be
executed and delivered by Purchaser to Seller at the Closing with respect to the truth and accuracy of Purchaser’s warranties and representations contained in this Agreement (modified and updated as the circumstances require), in the form
attached hereto as SCHEDULE 7. 
  

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 “Purchaser’s Counsel” shall mean Winzenburg, Leff, Purvis & Payne, LLP,
1660 Lincoln Street, Suite 1550, Denver, Colorado 80264, Attention: Mark Payne 
 “Real Estate Transfer Taxes” shall mean
the transfer tax, excise tax, documentary stamp tax or similar tax (however denominated) which may be imposed by the state, county and/or municipality in which the Property is located and be payable in connection with the conveyance of the Property
by Seller to Purchaser hereunder. 
 “Seller-Related Entities” shall have the meaning ascribed thereto in
Section 11.2 hereof. 
 “Seller’s Affidavit” shall mean the form of owner’s affidavit to be given by
Seller at Closing to the Title Company with respect to the Property, in the form attached hereto as SCHEDULE 4 with such changes, if any, as reasonably required by the Title Company to permit the Title Company to delete from
the title insurance policy to be issued under Section 6.1 hereof the standard printed exceptions with respect to (i) rights or claims of parties in possession not shown by the public records, and (ii) any lien, or right to a
lien, for services, labor, or material imposed by law and not shown by the public records. 
 “Seller’s Broker” shall
mean CB Richard Ellis, Inc., a Delaware corporation. 
 “Seller’s Certificate” shall mean the form of certificate to be
executed and delivered by Seller to Purchaser at the Closing with respect to the truth and accuracy of Seller’s warranties and representations contained in this Agreement (modified and updated as the circumstances require), in the form attached
hereto as SCHEDULE 5. 
 “Seller’s Counsel” shall mean Troutman Sanders LLP, Bank of America
Plaza, Suite 5200, 600 Peachtree Street, N.E., Atlanta, Georgia 30308-2216, Attention: John W. Griffin. 
 “Service
Contracts” shall mean with respect to Seller and the Property all those certain contracts and agreements more particularly described as Service Contracts on EXHIBIT “J” attached hereto and made a part hereof.

 “Subsequent Title Notice” shall have the meaning ascribed thereto in Section 3.4 hereof. 
 “Survey” shall have the meaning ascribed thereto in Section 3.4 hereof. 
 “Taxes” shall have the meaning ascribed thereto in Section 5.4(a) hereof. 
 “Title Company” shall mean Chicago Title Insurance Company. 
 “Title Commitment” shall have the meaning ascribed thereto in Section 3.4 hereof. 
 “Title Notice” shall have the meaning ascribed thereto in Section 3.4 hereof. 
 “Wells Affiliate” and “Wells Affiliates” shall mean each and every one of Seller, Wells Real Estate Fund IX, L.P., a
Georgia limited partnership, Wells Real Estate Fund X, L.P., a Georgia limited partnership, Wells Real Estate Fund XI, L.P., a Georgia limited partnership, Wells Operating Partnership, L.P., a Delaware limited partnership, Wells Capital, Inc., a
Georgia corporation, and Wells Management, Inc., a Georgia corporation. 
  

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 ARTICLE 2. 
 PURCHASE AND SALE 
 2.1. Agreement to Sell and Purchase the Property. Subject to and in
accordance with the terms and provisions of this Agreement, Seller agrees to sell and Purchaser agrees to purchase, the Property. 
 2.2.
Permitted Exceptions. The Property shall be conveyed subject to the matters which are, or are deemed to be, Permitted Exceptions. 
 2.3. Earnest Money. 
 (a) Within three (3) Business Days following the execution and delivery of this Agreement
by Seller and Purchaser, Purchaser shall deliver the Initial Earnest Money to Escrow Agent by federal wire transfer, which Initial Earnest Money shall be held and released by Escrow Agent in accordance with the terms of the Escrow Agreement. The
parties hereto mutually acknowledge and agree that time is of the essence in respect of Purchaser’s timely deposit of the Initial Earnest Money with Escrow Agent. If Purchaser fails to timely deposit the Initial Earnest Money with Escrow Agent,
then, at the option of Seller, exercisable by written notice to Purchaser and Escrow Agent, this Agreement shall terminate, and no party hereto shall have any further rights or obligations hereunder, except those provisions of this Agreement which
by their express terms survive the termination of this Agreement. 
 (b) The Earnest Money shall be applied to the Purchase Price at the
Closing and shall otherwise be held, refunded, or disbursed in accordance with the terms of the Escrow Agreement and this Agreement. Interest and other income from time to time earned on the Earnest Money shall be earned for the account of
Purchaser, and shall be a part of the Earnest Money; and the Earnest Money hereunder shall be comprised of the Initial Earnest Money (to the extent actually deposited by Purchaser with Escrow Agent as provided herein) and all such interest and other
income. 
 2.4. Purchase Price. Subject to adjustment and credits as otherwise specified in this Section 2.4 and
elsewhere in this Agreement, the purchase price (the “Purchase Price”) to be paid by Purchaser to Seller for the Property shall be the sum of EIGHT MILLION THREE HUNDRED TWENTY FIVE THOUSAND AND NO/100 DOLLARS ($8,325,000.00 U.S.),
if Closing occurs on or before December 31, 2006, and if Closing occurs on or after January 1, 2007, shall be the sum of EIGHT MILLION SIX HUNDRED TWENTY FIVE THOUSAND AND NO/100 DOLLARS ($8,625,000.00 U.S.). Notwithstanding the foregoing,
if Seller fails to perform any of its obligations under this Agreement for any reason other than Purchaser’s default or the permitted termination of this Agreement by Seller or Purchaser as expressly provided herein, and such failure of Seller
to perform delays the Closing beyond December 31, 2006, then the dates of December 31, 2006, and January 1, 2007, set forth above in this Section 2.4 shall be extended by one day for each day that such failure of Seller to
perform delayed the Closing beyond December 31, 2006. The Purchase Price shall be paid by Purchaser to Seller at the Closing as follows: 
 (a) The Earnest Money shall be paid by Escrow Agent to Seller at Closing; and 
 (b) At Closing, the balance of the Purchase Price,
after applying, as partial payment of the Purchase Price the Earnest Money paid by Escrow Agent to Seller, and subject to 

  

 6 

 
prorations and other adjustments specified in this Agreement, shall be paid by Purchaser in immediately available funds to the Title Company, for further
delivery to an account or accounts designated by Seller. If the Closing occurs, but the amount due from Purchaser pursuant to this Agreement is not received by Seller on or before the later of 3:00 p.m. Eastern Standard Time or in sufficient time
for reinvestment on the Closing Date, Purchaser shall reimburse Seller for loss of interest due to the inability to reinvest Seller’s funds on the Closing Date, calculated at the rate of eight percent (8%) per annum (calculated on a per
diem basis, using a 365-day year). The provisions of the preceding sentence of this Section 2.4(b) shall survive the Closing. 
 2.5. Independent Contract Consideration. In addition to, and not in lieu of the delivery to Escrow Agent of the Earnest Money, concurrently with Purchaser’s execution and delivery of this Agreement to Seller, Purchaser
has paid to Seller the amount of One Hundred and No/100 Dollars ($100.00), the receipt of which is acknowledged by Seller. Seller and Purchaser hereby mutually acknowledge and agree that said sum represents adequate bargained for consideration for
Seller’s execution and delivery of this Agreement and Purchaser’s right to inspect the Property pursuant to Article 3. Said sum is in addition to and independent of any other consideration or payment provided for in this
Agreement and is nonrefundable in all events. 
 2.6. Closing. The consummation of the sale by Seller and purchase by Purchaser
of the Property (the “Closing”) shall be held on or before December 29, 2006, except that Buyer may extend the date for Closing to a date no later than January 31, 2007 by notifying Seller in writing before
December 29, 2006 of such extension, and by paying the increased Purchase Price provided for in Section 2.4 above. The Closing shall take place at an office in the metropolitan Atlanta, Georgia, area, and at such specific place,
time and date (the “Closing Date”) as shall be designated by Purchaser in a written notice to Seller not less than three (3) Business Days prior to Closing. If Purchaser fails to give such notice of the Closing Date, the
Closing shall be at the offices of the Title Company, 4170 Ashford Dunwoody Road, Suite 460, Atlanta, Georgia 30399, at 10:00 a.m. on December 29, 2006. It is contemplated that the transaction shall be closed with the
concurrent delivery of the documents of title and the payment of the Purchase Price. Notwithstanding the foregoing, there shall be no requirement that Seller and Purchaser physically meet for the Closing, and all documents and funds to be delivered
at the Closing shall be delivered to the Title Company unless the parties hereto mutually agree otherwise. Seller and Purchaser agree to use reasonable efforts to complete all requirements for the Closing prior to the Closing Date. 
 ARTICLE 3. 
 PURCHASER’S
INSPECTION AND REVIEW RIGHTS 
 3.1. Due Diligence Inspections. 
 (a) From and after the Effective Date until the Closing Date or earlier termination of the inspection rights of Purchaser under this Agreement, Seller
shall permit Purchaser and its authorized representatives to inspect the Property, to perform due diligence and environmental investigations, to examine the records of Seller with respect to the Property, and make copies thereof, at such times
during normal business hours as Purchaser or its representatives may request. All such inspections shall be nondestructive in nature, and specifically shall not include any physically intrusive testing without the prior written consent of Seller.
Purchaser shall repair any damage caused by or resulting from any such testing, and shall restore the Property to the 

  

 7 

 
condition as the Property was in before any such testing. All inspection fees, appraisal fees, engineering fees and all other costs and expenses of any kind
incurred by Purchaser relating to the inspection of the Property shall be solely Purchaser’s expense. Seller reserves the right to have a representative present at the time of making any such inspection. Purchaser shall notify Seller not less
than two (2) Business Days in advance of making any such inspection. If Purchaser desires to perform any invasive or physically intrusive testing of the Property, including, without being limited to, any investigation that will involve the
removal of flooring, making excavations or test borings, disturbance of any plants, trees or shrubs, or any other invasive test or activity (collectively, “Invasive Testing”), then Purchaser shall provide to Seller a written request
for approval therefor, which Invasive Testing request shall include the nature and scope of the proposed Invasive Testing and the identity of the company or persons by whom it would be performed. Seller shall approve or disapprove, in Seller’s
reasonable discretion, any such Invasive Testing request in writing within two (2) Business Days following Seller’s receipt thereof, if received on a Business Day. Seller’s failure to either approve or disapprove the Invasive Testing
request within such time period shall be deemed Seller’s approval. 
 (b) If the Closing is not consummated hereunder, Purchaser shall
promptly deliver to Seller copies of all reports, surveys and other information furnished to Purchaser by third parties in connection with such inspections; provided, however, that delivery of such copies and information shall be without warranty or
representation whatsoever, express or implied, including, without limitation, any warranty or representation as to ownership, accuracy, adequacy or completeness thereof or otherwise. This Section 3.1(b) shall survive the termination of
this Agreement. 
 (c) To the extent that Purchaser or any of its representatives, agents or contractors damages or disturbs the Property or
any portion thereof, Purchaser shall return the same to substantially the same condition which existed immediately prior to such damage or disturbance. Purchaser hereby agrees to and shall indemnify, defend and hold harmless Seller from and against
any and all expense, loss or damage which Seller may incur (including, without limitation, reasonable attorney’s fees actually incurred) as a result of any act or omission of Purchaser or its representatives, agents or contractors. Said
indemnification shall not extend to pre-existing conditions merely discovered by Purchaser. Said indemnification agreement shall survive the Closing, or earlier termination of this Agreement. Prior to any entry onto the Property, Purchaser shall
obtain and shall thereafter maintain and shall ensure that Purchaser’s consultants and contractors maintain commercial general liability insurance in an amount not less than $2,000,000, combined single limit, and in form and substance adequate
to insure against all liability of Purchaser and its consultants and contractors, respectively, and each of their respective agents, employees and contractors, arising out of inspections and testing of the Property or any part thereof made on
Purchaser’s behalf. Purchaser agrees to provide to Seller a certificate of insurance with regard to each applicable liability insurance policy prior to any entry upon the Property by Purchaser or its consultants or contractors, as the case may
be, pursuant to this Section 3.1. 
 3.2. Deliveries by Seller to Purchaser; Purchaser’s Access to Property Records of
Seller. 
 (a) Within three (3) Business Days after the Effective Date, Seller shall deliver or make available to Purchaser to
the extent the same are in the possession of Seller (and Purchaser further acknowledges that no additional items are required to be delivered by Seller to Purchaser except as may be expressly set forth in other provisions of this Agreement):

  

	 	(i)	Copies of current property tax bills with respect to the Property. 

  

	 	(ii)	Copies of operating budgets and building operating expenses for 2004 and 2005 with respect to the Property. 

  

 8 

	 	(iii)	Copies of the Service Contracts. 

  

	 	(iv)	A copy of the Existing Survey. 

  

	 	(v)	A copy of Seller’s existing title policy. 

  

	 	(vi)	Copies of certificates of occupancy in the possession of Seller with respect to the Property. 

 (b) From the Effective Date until the Closing Date, or earlier termination of this Agreement, Seller shall allow Purchaser and Purchaser’s
representatives, on reasonable advance notice and during normal business hours, to have access to Seller’s existing non-confidential books, records and files relating to the Property, at the office of Seller at 6200 The Corners Parkway,
Norcross, Georgia 30092, for the purpose of inspecting and (at Purchaser’s expense) copying the same, including, without limitation, to the extent Seller has the same in its possession; available surveys, construction plans and specifications,
copies of any permits, licenses or other similar documents, available records of any operating costs and expenses and similar materials relating to the construction, operation, maintenance, repair, management and leasing of the Property, subject,
however, to the limitations of any confidentiality or nondisclosure agreement to which Seller may be bound, and provided that Seller shall not be required to deliver or make available to Purchaser any appraisals, third party property condition
reports obtained by Seller in connection with the Property (including without limitation reports, correspondence and related materials relating to the environmental condition or status of the Property), strategic plans for the Property, internal
analyses, information regarding the marketing for sale of the Property, submissions relating to Seller’s obtaining of corporate or partnership authorization, attorney and accountant work product, attorney-client privileged documents, or other
information in the possession or control of Seller which Seller reasonably deems confidential or proprietary. Alternatively, at Purchaser’s request and at Purchaser’s cost and expense, and subject to the provisions hereof, Seller will make
copies of non-confidential and non-proprietary due diligence materials relating to the Property as may be reasonably requested by Purchaser in writing and as may be in Seller’s possession, and will deliver the same to Purchaser. Purchaser
acknowledges and agrees, however, that Seller makes no representation or warranty of any nature whatsoever, express or implied, with respect to the ownership, enforceability, accuracy, adequacy or completeness or otherwise of any of such records,
evaluations, data, investigations, reports or other materials. If the Closing contemplated hereunder fails to take place for any reason, Purchaser shall promptly return (or certify as having destroyed) all copies of materials copied from the books,
records and files of Seller or furnished by Seller or Seller’s representatives relating to the Property. It is understood and agreed that Seller shall not have any obligation to obtain, commission or prepare any such books, records, files,
reports or studies not now in the possession or control of Seller. 
  

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 3.3. Condition of the Property. 
 (a) Seller recommends that Purchaser employ one or more independent engineering and/or environmental professionals to perform engineering, environmental
and physical assessments on Purchaser’s behalf in respect of the Property and the condition thereof. Purchaser and Seller mutually acknowledge and agree that the Property is being sold in an “AS IS” condition and “WITH ALL
FAULTS,” known or unknown, contingent or existing. Purchaser has the sole responsibility to fully inspect the Property, to investigate all matters relevant thereto, including, without limitation, the condition of the Property, and to reach its
own, independent evaluation of any risks (environmental or otherwise) or rewards associated with the ownership, leasing, management and operation of the Property. Effective as of the Closing and except as expressly set forth in this Agreement,
Purchaser hereby waives and releases Seller and its partners and their respective officers, directors, shareholders, partners, agents, affiliates, employees and successors and assigns from and against any and all claims, obligations and liabilities
arising out of or in connection with the Property. 
 (b) To the fullest extent permitted by law, Purchaser does hereby unconditionally waive
and release Seller and its partners and their respective officers, directors, shareholders, partners, agents, affiliates and employees from any present or future claims and liabilities of any nature arising from or relating to the presence or
alleged presence of Hazardous Substances in, on, at, from, under or about the Property or any adjacent property, including, without limitation, any claims under or on account of any Environmental Law, regardless of whether such Hazardous Substances
are located in, on, at, from, under or about the Property or any adjacent property prior to or after the date hereof (collectively, “Environmental Liabilities”); provided, however, that the foregoing release as it applies to Seller
and its partners and their respective officers, directors, shareholders, partners, agents, affiliates and employees, shall not release Seller from any Environmental Liabilities of Seller relating to any Hazardous Substances which may be placed,
located or released on the Property by Seller after the date of Closing. The terms and provisions of this Section 3.3 shall survive the Closing. 
 3.4. Title and Survey. Within three (3) business days after the execution of this Agreement, Purchaser shall order from the Title Company a preliminary owner’s title commitment with respect to
the Property issued in favor of Purchaser (the “Title Commitment”). Purchaser shall request that the Title Company make copies of the Title Commitment, and copies of all underlying recorded exceptions referenced in the Title
Commitment (the “Title Documents”), available to Seller on the Title Company’s website. In addition, within three (3) business days after the execution of this Agreement, Purchaser shall arrange, at Purchaser’s expense, for
the preparation of one or more updates of the Existing Survey (such update, the “Survey”), which Survey shall be certified to Purchaser, Seller and the Title Company, and Purchaser shall deliver a copy of the Survey to Seller.
Purchaser shall have until November 29, 2006 to give written notice (the “Title Notice”) to Seller of such objections as Purchaser may have to any exceptions to title disclosed in the Title Commitment or in the Survey or
otherwise in Purchaser’s examination of title. From time to time at any time after the Title Notice and prior to the Closing Date, Purchaser may give written notice (a “Subsequent Title Notice”) to Seller of exceptions to title
first appearing of record with respect to the Property after the effective date of the most recent previous Title Commitment or updated Title Commitment or matters of survey which matters of record or matters of survey would not have been disclosed
by an accurate updated examination of title or an update to the Existing Survey prior to date of the initial Title Commitment or the initial Survey. Seller shall have the right, but not the obligation (except as to 

  

 10 

 
Monetary Objections affecting the Property), to attempt to remove, satisfy or otherwise cure any exceptions to title to which the Purchaser so objects.
Within three (3) Business Days after receipt of Purchaser’s Title Notice, Seller shall give written notice to Purchaser informing the Purchaser of Seller’s election with respect to the objections in the Title Notice. Within three
(3) Business Days after Seller’s receipt of any Subsequent Title Notice, Seller shall give written notice to Purchaser informing the Purchaser of Seller’s election with respect to the objections in such Subsequent Title Notice. If
Seller fails to give written notice of election within such three (3) Business Day period, Seller shall be deemed to have elected not to attempt to cure the applicable objections (other than Monetary Objections). If Seller elects to attempt to
cure any objections, Seller shall be entitled to one or more reasonable adjournments of the Closing of up to but not beyond the tenth (10th) day following the initial date set for the Closing to attempt such cure, but, except for Monetary Objections affecting the Property, Seller shall not be obligated to expend any sums, commence any suits or take any
other action to effect such cure. Except as to Monetary Objections affecting the Property, if Seller elects, or is deemed to have elected, not to cure any exceptions to title to which Purchaser has objected or if, after electing to attempt to cure,
Seller determines that it is unwilling or unable to remove, satisfy or otherwise cure any such exceptions, Purchaser’s sole remedy hereunder in such event shall be either (i) to accept title to the Property subject to such exceptions as if
Purchaser had not objected thereto and without reduction of the Purchase Price, or (ii) to terminate this Agreement within three (3) Business Days after receipt of written notice from Seller either of Seller’s election not to attempt
to cure any objection or of Seller’s determination, having previously elected to attempt to cure, that Seller is unable or unwilling to do so (or three (3) Business Days after Seller is deemed hereunder to have elected not to attempt to
cure such objections), whereupon Escrow Agent shall return the Earnest Money to Purchaser. Notwithstanding anything to the contrary contained elsewhere in this Agreement, Seller shall be obligated to cure or satisfy all Monetary Objections affecting
the Property at or prior to Closing, and Seller may use the proceeds of the Purchase Price at Closing for such purpose. 
 3.5.
Financing. Within three (3) Business Days after full execution of this Agreement, Purchaser shall apply for (and provide Seller copies of such application) a commitment for a loan (and shall therefore pursue such application with
reasonable diligence, including but not limited to executing all papers and performing all other actions necessary to obtain said loan commitment and to accept such commitment if it is obtainable by Purchaser) from a lender of Purchaser’s
choice, in the principal amount not to exceed Five Million Nine Hundred Thousand Dollars ($5,900,000) together with seventy percent (70%) of Purchaser’s budgeted costs and expenses for Property acquisition, Property improvements and tenant
finish, to be secured by a first lien on the Land and Improvements, having an interest rate and term acceptable to Purchaser. If Purchaser does not apply for such loan commitment on or before the date three (3) Business Days after the Effective
Date (or does not provide Seller with copies of such application on or before the date three (3) Business Days after the Effective Date), Seller may, upon written notification to Purchaser, terminate this Agreement, and Escrow Agent shall pay
one half of the Earnest Money to Purchaser and shall pay one half of the Earnest Money to Seller, whereupon, except for those provisions of this Agreement which by their express terms survive the termination of this Agreement, no party hereto shall
have any other or further rights or obligations under this Agreement. If Purchaser applies for such loan commitment on or before the date three (3) Business Days after the Effective Date and thereafter pursues such application with reasonable
diligence, executing all papers and performing all other actions necessary to obtain said loan commitment, then Purchaser shall have the right to terminate this Agreement at any time on or before December 18, 2006, by written
notification to Seller, 

  

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provided, however, that Purchaser shall have no right to terminate this Agreement under this Section 3.5 in the event Purchaser obtains such loan
commitment. If Purchaser, on or before the expiration of the Inspection Period, so terminates this Agreement pursuant to this Section 3.5, Escrow Agent shall pay the Earnest Money to Purchaser, whereupon, except for those provisions of this
Agreement which by their express terms survive the termination of this Agreement, no party hereto shall have any other or further rights or obligations under this Agreement. If Purchaser, subsequent to the expiration of the Inspection Period (and on
or before December 18, 2006), so terminates this Agreement pursuant to this Section 3.5, Escrow Agent shall pay one half of the Earnest Money to Purchaser and shall pay one half of the Earnest Money to Seller, whereupon,
except for those provisions of this Agreement which by their express terms survive the termination of this Agreement, no party hereto shall have any other or further rights or obligations under this Agreement. If Purchaser fails to so terminate this
Agreement on or before December 18, 2006, and prior to obtaining such loan commitment, Purchaser shall have no further right to terminate this Agreement pursuant to this Section 3.5. The parties acknowledge that this
Agreement shall not be void or voidable for lack of mutuality. 
 3.6. Termination of Agreement. Purchaser shall have until the
expiration of the Inspection Period to determine, in Purchaser’s sole opinion and discretion, the suitability of the Property for acquisition by Purchaser or Purchaser’s permitted assignee. Purchaser shall have the right to terminate this
Agreement at any time on or before said time and date of expiration of the Inspection Period by giving written notice to Seller of such election to terminate. If Purchaser so elects to terminate this Agreement pursuant to this
Section 3.6, Escrow Agent shall pay the Earnest Money to Purchaser, whereupon, except for those provisions of this Agreement which by their express terms survive the termination of this Agreement, no party hereto shall have any other or
further rights or obligations under this Agreement. If Purchaser fails to so terminate this Agreement prior to the expiration of the Inspection Period, Purchaser shall have no further right to terminate this Agreement pursuant to this
Section 3.6. The parties acknowledge that this Agreement shall not be void or voidable for lack of mutuality. 
 3.7.
Confidentiality. All information acquired by Purchaser or any of its designated representatives (including by way of example, but not in limitation, the officers, directors, shareholders and employees of Purchaser, and Purchaser’s
engineers, consultants, counsel and potential lenders, and the officers, directors, shareholders and employees of each of them) with respect to the Property, whether delivered by Seller or any representatives of Seller or obtained by Purchaser as a
result of its inspection and investigation of the Property, examination of the books, records and files of Seller in respect of the Property, or otherwise (collectively, the “Due Diligence Material”) shall be used solely for the
purpose of determining whether the Property is suitable for Purchaser’s acquisition and ownership thereof and for no other purpose whatsoever. Prior to Closing, the terms and conditions which are contained in this Agreement and all Due
Diligence Material which is not published as public knowledge or which is not generally available in the public domain shall be kept in strict confidence by Purchaser and shall not be disclosed to any individual or entity other than to those
authorized representatives of Purchaser and Purchaser’s prospective and actual counsel, accountants, professionals, consultants, attorneys and lenders, who need to know the information for the purpose of assisting Purchaser in evaluating the
Property for Purchaser’s potential acquisition thereof; provided, however, that Purchaser shall have the right to disclose any such information if required by applicable law or as may be necessary in connection with any court action or
proceeding with respect to this Agreement. Purchaser shall and hereby agrees to indemnify and hold Seller harmless from and against any and all loss, liability, cost, damage or expense that Seller may suffer or incur 

  

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(including, without limitation, reasonable attorneys’ fees actually incurred) as a result of the unpermitted disclosure of any of the Due Diligence
Material to any individual or entity other than an appropriate representative of Purchaser and Purchaser’s prospective and actual counsel, accountants, professionals, consultants, attorneys and lenders and/or the use of any Due Diligence
Material for any purpose other than as herein contemplated and permitted. The foregoing indemnity shall not extend to disclosure of any Due Diligence Material (i) as may be required by applicable law to be disclosed, or (ii) that is or
becomes public knowledge other than by virtue of a breach of Purchaser’s covenant under this Section 3.7. If Purchaser or Seller elects to terminate this Agreement pursuant to any provision hereof permitting such termination, or if
the Closing contemplated hereunder fails to occur for any reason, Purchaser will promptly return to Seller all Due Diligence Material in the possession of Purchaser and any of its representatives, and destroy all copies, notes or abstracts or
extracts thereof, as well as all copies of any analyses, compilations, studies or other documents prepared by Purchaser or for its use (whether in written or electronic form) containing or reflecting any Due Diligence Material. In the event of a
breach or threatened breach by Purchaser or any of its representatives of this Section 3.7, Seller shall be entitled, in addition to other available remedies, to an injunction restraining Purchaser or its representatives from disclosing,
in whole or in part, any of the Due Diligence Material and any of the terms and conditions of this Agreement. Nothing contained herein shall be construed as prohibiting or limiting Seller from pursuing any other available remedy, in law or in
equity, for such breach or threatened breach. The provisions of this Section shall survive any termination of this Agreement. 
 ARTICLE 4.

 REPRESENTATIONS, WARRANTIES AND OTHER AGREEMENTS 
 4.1. Representations and Warranties of Seller. Seller hereby makes the following representations and warranties to Purchaser: 
 (a) Organization, Authorization and Consents. 
  

	 	(i)	Generally. Seller has the right, power and authority to enter into this Agreement and to sell the Property in accordance with the terms and provisions of this Agreement, to
engage in the transaction contemplated in this Agreement and to perform and observe all of the terms and provisions hereof. 

  

	 	(ii)	Seller. Seller is a duly organized and validly existing joint venture under the laws of the State of Georgia, whose joint venture partners are Wells Real Estate Fund IX,
L.P., Wells Real Estate Fund X, L.P., Wells Real Estate Fund XI, L.P., and Wells Operating Partnership, L.P. 

  

	 	(iii)	Wells Real Estate Fund IX, L.P. Wells Real Estate Fund IX, L.P. is a duly organized and validly existing limited partnership under the laws of the State of Georgia, whose
general partners are Leo F. Wells, III and Wells Partners, L.P., a Georgia limited partnership. 

  

	 	(iv)	Wells Real Estate Fund X, L.P. Wells Real Estate Fund X, L.P. is a duly organized and validly existing limited partnership under the laws of the State of Georgia, whose
general partners are Leo F. Wells, III and Wells Partners, L.P., a Georgia limited partnership. 

  

 13 

	 	(v)	Wells Real Estate Fund XI, L.P. Wells Real Estate Fund XI, L.P. is a duly organized and validly existing limited partnership under the laws of the State of Georgia, whose
general partners are Leo F. Wells, III and Wells Partners, L.P., a Georgia limited partnership. 

  

	 	(vi)	Wells Operating Partnership, L.P. Wells Operating Partnership, L.P., is a duly organized and validly existing limited partnership under the laws of the State of Delaware,
whose sole general partner is Wells Real Estate Investment Trust, Inc., a Maryland corporation. 

  

	 	(vii)	Wells Partners, L.P. Wells Partners, L.P. is a duly formed and validly existing limited partnership under the laws of the State of Georgia, whose general partner is Wells
Capital, Inc. 

  

	 	(viii)	Wells Capital, Inc. Wells Capital, Inc. is a duly organized and validly existing corporation under the laws of the State of Georgia. 

  

	 	(ix)	Wells Real Estate Investment Trust, Inc. Wells Real Estate Investment Trust, Inc. is a duly organized and validly existing corporation under the laws of the State of
Maryland. 

 (b) Action of Seller, Etc. Seller has taken all necessary action to authorize the execution, delivery and
performance of this Agreement, and upon the execution and delivery of any document to be delivered by Seller on or prior to the Closing, this Agreement and such document shall constitute the valid and binding obligation and agreement of Seller,
enforceable against Seller in accordance with its terms, except as enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws of general application affecting the rights and remedies of creditors. 

(c) No Violations of Agreements. Neither the execution, delivery or performance of this Agreement by Seller, nor compliance with the terms and
provisions hereof, will result in any breach of the terms, conditions or provisions of, or conflict with or constitute a default under, or result in the creation of any lien, charge or encumbrance upon the Property or any portion thereof pursuant to
the terms of any indenture, deed to secure debt, mortgage, deed of trust, note, evidence of indebtedness or any other agreement or instrument by which Seller is bound. 
 (d) Litigation. To Seller’s knowledge, and except as disclosed on EXHIBIT “I” attached hereto, Seller has not received written notice of any pending or threatened suit,
action or proceeding, which (i) if determined adversely to Seller, materially and adversely affects the use or value of the Property, or (ii) questions the validity of this Agreement or any action taken or to be taken pursuant hereto, or
(iii) involves condemnation or eminent domain proceedings involving the Property, or any portion thereof. 
 (e) Existing Leases.
Seller has not entered into any contract or agreement with respect to the occupancy of the Property or any portion or portions thereof which will be binding on Purchaser or the Property after the Closing. 
  

 14 

 (f) Leasing Commissions. To Seller’s knowledge, there are no lease brokerage agreements,
leasing commission agreements or other agreements providing for payments of any amounts for leasing activities or procuring tenants with respect to the Property or any portion or portions. 
 (g) Management Agreement. There is no agreement currently in effect and entered into by Seller relating to the management of the Property by any
third party management company. 
 (h) Taxes and Assessments. Except as may be set forth on EXHIBIT “K”
attached hereto and made a part hereof, Seller has not filed, and has not retained anyone to file, notices of protests against, or to commence action to review, real property tax assessments against the Property, which are still pending.

 (i) Compliance with Laws. To Seller’s knowledge, and except as set forth on EXHIBIT “I”,
Seller has received no written notice alleging any violations of law (including any Environmental Law), municipal or county ordinances, or other legal requirements with respect to the Property where such violations remain outstanding. 
 (j) Other Agreements. To Seller’s knowledge, except for the Permitted Exceptions affecting the Property, there are no leases, management
agreements, brokerage agreements, leasing agreements or other agreements or instruments in force or effect that grant to any person or any entity (other than to Seller) any right, title, interest or benefit in and to all or any part of the Property
or any rights relating to the use, operation, management, maintenance or repair of all or any part of the Property which will survive the Closing or be binding upon Purchaser other than those which Purchaser has agreed in writing to assume prior to
the expiration of the Inspection Period (or is deemed to have agreed to assume) or which are terminable upon thirty (30) days notice without payment of premium or penalty. 
 (k) Seller Not a Foreign Person. Seller is not a “foreign person” which would subject Purchaser to the withholding tax provisions of
Section 1445 of the Internal Revenue Code of 1986, as amended. 
 (l) Employees. Seller has no employees to whom by virtue of
such employment Purchaser will have any obligation after the Closing. 
 (m) Environmental. Seller has received no written notice from
any governmental authority that such authority has determined that there are any violations of an Environmental Law affecting the Property. Seller has received no written notice from any governmental authority that the Property has been previously
used as a landfill or as a dump for garbage or refuse. In the event, prior to Closing, Seller receives written notice from any governmental authority that such authority has determined there are any violations of an Environmental Law affecting the
Property, Seller shall immediately notify Purchaser thereof. 
 The representations and warranties made in this Agreement by Seller shall be
continuing and shall be deemed made as of the date hereof and remade by Seller as of the Closing Date in all material respects, with the same force and effect as if made on, and as of, such date, subject to Seller’s right to update such
representations and warranties by written notice to Purchaser and in the certificate of Seller to be delivered pursuant to Section 5.1(f) hereof. 
  

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 Except as otherwise expressly provided in this Agreement or in any documents to be executed and delivered
by Seller to Purchaser at the Closing, Seller has not made, and Purchaser has not relied on, any information, promise, representation or warranty, express or implied, regarding the Property, whether made by Seller, on behalf of Seller, or otherwise,
including, without limitation, the physical condition of the Property, the financial condition of the tenant(s) under any lease(s), title to or the boundaries of the Property, pest control matters, soil conditions, the presence, existence or absence
of hazardous wastes, toxic substances or other environmental matters, compliance with building, health, safety, land use and zoning laws, regulations and orders, structural and other engineering characteristics, traffic patterns, market data,
economic conditions or projections, and any other information pertaining to the Property or the market and physical environments in which the Property is located. Purchaser acknowledges (i) that Purchaser has entered into this Agreement with
the intention of making and relying upon its own investigation or that of Purchaser’s own consultants and representatives with respect to the physical, environmental, economic and legal condition of the Property and (ii) that Purchaser is
not relying upon any statements, representations or warranties of any kind, other than those specifically set forth in this Agreement or in any document to be executed and delivered by Seller to Purchaser at the Closing, made (or purported to be
made) by Seller or anyone acting or claiming to act on behalf of Seller. Purchaser will inspect the Property and become fully familiar with the physical condition thereof and, subject to the terms and conditions of this Agreement, shall purchase the
Property in its “as is” condition, “with all faults,” on the Closing Date. The provisions of this paragraph shall survive the Closing until the expiration of any applicable statute of limitations. 
 4.2. Knowledge Defined. All references in this Agreement to the “knowledge of Seller” or “to Seller’s knowledge”
shall refer only to the actual knowledge of Damian Miller, Associate, Asset Management, who has been actively involved in the management of Seller’s business in respect of the Property. The term “knowledge of Seller” or
“to Seller’s knowledge” shall not be construed, by imputation or otherwise, to refer to the knowledge of Seller, or any affiliate of Seller, or to any other partner, beneficial owner, officer, director, agent, manager, representative
or employee of Seller, or any of their respective affiliates, or to impose on any of the individuals named above any duty to investigate the matter to which such actual knowledge, or the absence thereof, pertains. There shall be no personal
liability on the part of any of the individuals named above arising out of any representations or warranties made herein or otherwise. 
 4.3. Covenants and Agreements of Seller. 
 (a) Leasing Arrangements. During the pendency of this Agreement on
or before the expiration of the Inspection Period, Seller will not enter into any lease affecting the Property. During the pendency of this Agreement subsequent to the expiration of the Inspection Period, Seller shall not enter into any lease
affecting the Property, without Purchaser’s prior written consent in each instance, which consent may be withheld in Purchaser’s sole discretion. 
 (b) New Contracts. During the pendency of this Agreement, Seller will not enter into any contract, or modify, amend, renew or extend any existing contract, that will be an obligation affecting the Property or
any part thereof subsequent to the Closing without Purchaser’s prior written consent in each instance (which Purchaser agrees not to withhold or delay unreasonably), except contracts entered into in the ordinary course of business that are
terminable without cause (and without penalty or premium) on thirty (30) days (or less) notice. 
  

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 (c) Operation of Property. During the pendency of this Agreement, Seller shall continue to operate
the Property in a good and businesslike fashion consistent with Seller’s past practices. 
 (d) Insurance. During the pendency of
this Agreement, Seller shall, at Seller’s expense, continue to maintain, or cause to be maintained, the insurance policies covering the Improvements which are currently in force and effect. 
 (e) Roof. Prior to Closing, Seller, at Seller’s sole cost and expense, shall cause the existing roof on the Improvements to be replaced in
accordance with the specifications set forth on EXHIBIT “E” attached hereto and made a part hereof, and Seller will cooperate with Purchaser in obtaining the roofing contractor’s written acknowledgment and
agreement that the warranty for the roof replacement is assignable to, and enforceable by, Purchaser. 
 4.4. Representations and
Warranties of Purchaser. 
 (a) Organization, Authorization and Consents. Purchaser is a duly organized and validly existing
limited liability company under the laws of the State of Colorado. Purchaser has the right, power and authority to enter into this Agreement and to purchase the Property in accordance with the terms and conditions of this Agreement, to engage in the
transactions contemplated in this Agreement and to perform and observe the terms and provisions hereof. 
 (b) Action of Purchaser,
Etc. Purchaser has taken all necessary action to authorize the execution, delivery and performance of this Agreement, and upon the execution and delivery of any document to be delivered by Purchaser on or prior to the Closing, this Agreement and
such document shall constitute the valid and binding obligation and agreement of Purchaser, enforceable against Purchaser in accordance with its terms, except as enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or
similar laws of general application affecting the rights and remedies of creditors. 
 (c) No Violations of Agreements. Neither the
execution, delivery or performance of this Agreement by Purchaser, nor compliance with the terms and provisions hereof, will result in any breach of the terms, conditions or provisions of, or conflict with or constitute a default under the terms of
any indenture, deed to secure debt, mortgage, deed of trust, note, evidence of indebtedness or any other agreement or instrument by which Purchaser is bound. 
 (d) Litigation. To Purchaser’s knowledge, Purchaser has received no written notice that any action or proceeding is pending or threatened, which questions the validity of this Agreement or any action taken
or to be taken pursuant hereto. 
 The representations and warranties made in this Agreement by Purchaser shall be continuing and shall be
deemed remade by Purchaser as of the Closing Date, with the same force and effect as if made on, and as of, such date subject to Purchaser’s right to update such representations and warranties by written notice to Seller and in Purchaser’s
certificate to be delivered pursuant to Section 5.2(b) hereof. The provisions of this paragraph shall survive the Closing for a period of one hundred eighty (180) days following the Closing, subject to Article 11 hereof.

  

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 ARTICLE 5. 
 CLOSING DELIVERIES, CLOSING COSTS AND PRORATIONS 
 5.1. Seller’s Closing
Deliveries. For and in consideration of, and as a condition precedent to Purchaser’s delivery to Seller of the Purchase Price, Seller shall obtain or execute and deliver to Purchaser at Closing the following documents with respect to
the Property, all of which shall be duly executed, acknowledged and notarized where required: 
 (a) Limited Warranty Deed. A special
warranty deed in the form customarily used in the State of Colorado pursuant to which a grantor warrants title only as to parties claiming by, through or under the grantor but not otherwise, from Seller with respect to the Land and Improvements
owned by Seller (the “Limited Warranty Deed”), subject only to the Permitted Exceptions, and executed and acknowledged by Seller. The legal description of the Land set forth in the Limited Warranty Deed shall be based
upon and conform to the applicable legal description attached hereto as EXHIBIT “A”. If and to the extent that any of the Permitted Exceptions requires the recitation or incorporation in any deed of any
provisions of such Permitted Exception, the Limited Warranty Deed may conform to such requirements; 
 (b) Assignment and Assumption of
Service Contracts. Two (2) counterparts of the Assignment and Assumption of Service Contracts, executed and acknowledged by Seller; 
 (c) Bill of Sale. The Bill of Sale, executed by Seller; 
 (d) General Assignment. The General Assignment, executed
and acknowledged by Seller; 
 (e) Seller’s Affidavit. The Seller’s Affidavit, executed by an authorized officer of Seller;

 (f) Seller’s Certificate. The Seller’s Certificate, executed by Seller; 
 (g) FIRPTA Certificate. The FIRPTA Affidavit, executed by Seller; 
 (h) Evidence of Authority. Such documentation as may reasonably be required by the Title Company to establish that this Agreement, the transactions contemplated herein, and the execution and delivery of the
documents required hereunder, are duly authorized, executed and delivered on behalf of Seller; 
 (i) Settlement Statement. A
settlement statement setting forth the amounts paid by or on behalf of and/or credited to each of Purchaser and Seller pursuant to this Agreement; 
 (j) Surveys and Plans. Such surveys, site plans, plans and specifications, and other matters relating to the Property as are in the possession of Seller to the extent not theretofore delivered to Purchaser; 
 (k) Certificates of Occupancy. To the extent the same are in the possession of Seller, original or photocopies of certificates of occupancy for
all space within the Improvements; 
 (l) Notices of Sale to Service Contractors. Seller will join with Purchaser in executing
notices, in form and content reasonably satisfactory to Seller and Purchaser (the 

  

 18 

 
“Other Notices of Sale”), which Purchaser shall send to each service provider under the Service Contracts assumed by Purchaser at Closing
informing such service provider of the sale of the Property and of the assignment to and assumption by Purchaser of Seller’s obligations under the Service Contracts arising after the Closing Date and directing that all future statements or
invoices for services under such Service Contracts for periods after the Closing be directed to Seller or Purchaser as set forth in said notices; 
 (m) Keys and Records. All of the keys to any door or lock on the Property and the original tenant files and other non-confidential books and records (excluding any appraisals, budgets, third party reports obtained by Seller in
connection with the Property, strategic plans for the Property, internal analyses, information regarding the marketing of the Property for sale, submissions relating to Seller’s obtaining of corporate or partnership authorization, attorney and
accountant work product, attorney-client privileged documents, or other information in the possession or control of Seller which Seller reasonably deems proprietary) relating to the Property in the possession of Seller; and 
 (n) Other Documents. Such other documents as shall be reasonably requested by the Title Company or Purchaser’s Counsel to effectuate the
purposes and intent of this Agreement. 
 5.2. Purchaser’s Closing Deliveries. Purchaser shall obtain or execute and
deliver to Seller at Closing the following documents, all of which shall be duly executed, acknowledged and notarized where required: 
 (a)
Assignment and Assumption of Service Contracts. Two (2) counterparts of the Assignment and Assumption of Service Contracts, executed and acknowledged by Purchaser; 
 (b) Purchaser’s Certificate. The Purchaser’s Certificate, executed by Purchaser; 
 (c) Notices of Sale to Service Contractors. The Other Notices of Sale to service providers, as contemplated in Section 5.1(l) hereof;

 (d) Settlement Statement A settlement statement setting forth the amounts paid by or on behalf of and/or credited to each of
Purchaser and Seller pursuant to this Agreement; 
 (e) Evidence of Authority. Such documentation as Seller may reasonably require to
establish that this Agreement, the transactions contemplated herein, and the execution and delivery of the documents required hereunder, are duly authorized, executed and delivered on behalf of Purchaser; and 
 (f) Other Documents. Such other documents as shall be reasonably requested by the Title Company or Seller’s Counsel to effectuate the
purposes and intent of this Agreement. 
 5.3. Closing Costs. Seller shall pay the attorneys’ fees of Seller, the
brokerage commission due Seller’s Broker pursuant to Section 10.1 of this Agreement with respect to the sale of the Property, and all other costs and expenses incurred by Seller in closing and consummating the purchase and sale of
the Property pursuant hereto. Seller and Purchaser shall each pay one-half of any escrow closing fees charged by the Title Company. Purchaser shall pay the brokerage commission due Purchaser’s Broker pursuant to Section 10.1 of this
Agreement with respect to the sale of the Property, the Real Estate Transfer Taxes (if any) imposed upon the conveyance of the Property, the cost of recording the Limited Warranty Deed, the costs of all 

  

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title examination fees and expenses and title insurance premiums payable with respect to the owner’s title insurance policy issued by the Title Company
to Purchaser, the cost of all endorsements to Purchaser’s owner’s title insurance policy, the costs of issuing and title insurance premiums for any mortgagee title insurance policy obtained by Purchaser, the cost of the Survey, all other
recording fees on all instruments to be recorded in connection with these transactions, the attorneys’ fees of Purchaser, and all other costs and expenses incurred by Purchaser in the performance of Purchaser’s due diligence inspection of
the Property (including without limitation appraisal costs, environmental audit and assessment costs, and engineering review costs) and in closing and consummating the purchase and sale of the Property pursuant hereto. 
 5.4. Prorations and Credits. The following items in this Section 5.4 shall be adjusted and prorated between Seller and
Purchaser as of 11:59 P.M. on the day preceding the Closing, based upon the actual number of days in the applicable month or year: 
 (a)
Taxes. All general real estate taxes imposed by any governmental authority (“Taxes”) for the year in which the Closing occurs shall be prorated between Purchaser and Seller with respect to the Property as of the Closing. If
the Closing occurs prior to the receipt by Seller of the tax bill for the Property for the calendar year or other applicable tax period in which the Closing occurs, Taxes with respect to the Property shall be prorated for such calendar year or other
applicable tax period based upon the prior year’s tax bill. 
 (b) Reproration of Taxes. Within thirty (30) days of receipt
of final bills for Taxes, the party receiving said final tax bills shall furnish copies of the same to the other party and shall prepare and present to such other party a calculation of the reproration of such Taxes based upon the actual amount of
such Taxes for the year. The parties shall make the appropriate adjusting payment between them within thirty (30) days after presentment to Seller of Purchaser’s calculation and appropriate back-up information. The provisions of this
Section 5.4(b) shall survive the Closing for a period of eighteen (18) months after the Closing Date. 
 (c) Rents,
Income and Other Expenses. Rents and any other amounts paid to Seller by the tenant(s) under any new lease(s) entered into in accordance with the terms of this Agreement shall be prorated as of the Closing Date and be adjusted against the
Purchase Price on the basis of a schedule which shall be prepared by Seller and delivered to Purchaser for Purchaser’s review and approval prior to Closing. Seller and Purchaser shall prorate all rents, additional rent, common area maintenance
charges, operating expense contributions, tenant reimbursements and escalations, and all other payments under any such new lease(s) received as of the Closing Date so that at Closing Seller will receive monthly basic rent payments through the day
prior to the Closing Date and so that Seller will receive reimbursement for all expenses paid by Seller through the day prior to the Closing Date for which Seller is entitled to reimbursement under any such new lease(s) (including, without
limitation, Taxes) (such expenses shall be reasonably estimated if not ascertainable as the Closing Date and then shall be re-adjusted as provided in (f) below when actual amounts are determined), and so that the excess, if any, is credited to
Purchaser. Purchaser agrees to pay to Seller, upon receipt, any rents or other payments by the tenant(s) under the any new lease(s) with respect to the Property that apply to periods prior to Closing but which are received by Purchaser after
Closing; provided, however, that any rents or other payments by such tenants received by Purchaser after Closing shall be applied first to any current amounts then owed to Purchaser by such tenants, with the balance, if any, paid over to Seller to
the extent of delinquencies existing on the date of Closing to which Seller is entitled. It is understood and agreed that Purchaser shall not be legally responsible to Seller for the collection of any rents or other charges payable with respect

  

 20 

 
to any new lease(s) or any portion thereof which are delinquent or past due as of the Closing Date; but Purchaser agrees that Purchaser shall send monthly
notices for a period of three (3) consecutive months in an effort to collect any rents and charges not collected as of the Closing Date. Seller hereby retains its right to pursue the tenants under any new lease(s) for sums due Seller for
periods attributable to Seller’s ownership of the Property. The provisions of this Section 5.4(c) shall survive the Closing. 
 (d) Intentionally Deleted. 
 (e) Security Deposits. Purchaser shall receive at Closing a credit with respect to the
Purchase Price for all security deposits transferred and assigned to Purchaser at Closing in connection with any new lease(s) affecting the Property, together with a detailed inventory of such security deposits certified by Seller at Closing.

 (f) Operating Expenses; Year End Reconciliation. Personal property taxes, installment payments of special assessment liens, vault
charges, sewer charges, utility charges, and normally prorated operating expenses actually paid or payable by Seller as of the Closing Date with respect to the Property shall be prorated as of the Closing Date and adjusted against the Purchase
Price, provided that within ninety (90) days after the Closing, Purchaser and Seller will make a further adjustment for such expenses which may have accrued or been incurred prior to the Closing Date, but which were not paid as of the Closing
Date. In addition, within ninety (90) days after the close of the fiscal year used in calculating the pass-through to the tenants of operating expenses and/or common area maintenance costs under any new lease(s) affecting the Property (where
such fiscal year includes the Closing Date), Seller and Purchaser shall re-prorate on a fair and equitable basis all rents and income prorated pursuant to this Section 5.4 as well as all expenses prorated pursuant to this
Section 5.4. All prorations of rent and other income shall be made based on the cumulative amounts collected from the tenants under any new lease(s) in such fiscal year and applied first to actual expense amounts paid by Seller prior to
the Closing Date and then to Purchaser for actual expense amounts paid by Purchaser from and after the Closing Date. The provisions of this Section 5.4(f) shall survive the Closing. 
 ARTICLE 6. 
 CONDITIONS TO CLOSING

 6.1. Conditions Precedent to Purchaser’s Obligations. The obligations of Purchaser hereunder to consummate the
transaction contemplated hereunder shall in all respects be conditioned upon the satisfaction of each of the following conditions prior to or simultaneously with the Closing, any of which may be waived by Purchaser in its sole discretion by written
notice to Seller at or prior to the Closing Date: 
 (a) Seller shall have performed, in all material respects, all covenants, agreements and
undertakings of Seller contained in this Agreement; and 
 (b) All representations and warranties of Seller as set forth in this Agreement
shall be true and correct in all material respects as of the date of this Agreement and as of Closing, provided that solely for purposes of this subparagraph such warranties and representations shall be deemed to be given without being limited to
Seller’s knowledge and without modification (by update or otherwise, as provided in Section 5.1(f) hereof). 
  

 21 

 (c) The Title Company is prepared, upon payment of the policy premium, to issue to Purchaser upon the
Closing an owner’s title insurance policy in the amount of the Purchase Price with respect to the Property showing Purchaser as the owner of the Property and showing as exceptions to title only the Permitted Exceptions, the matters created by
Purchaser, and the standard printed exceptions (but with the following standard printed exceptions deleted (i) rights or claims of parties in possession not shown by the public records, and (ii) any lien, or right to a lien, for services,
labor, or material imposed by law and not shown by the public records). 
 In the event any condition in this Section 6.1 has not
been satisfied (or otherwise waived in writing by Purchaser) prior to or on the Closing Date (as the same may be extended or postponed as provided in this Agreement), Purchaser shall have the right, in its sole discretion, to terminate this
Agreement by written notice to Seller given prior to the Closing, whereupon (i) Escrow Agent shall return the Earnest Money to Purchaser; and (ii) except for those provisions of this Agreement which by their express terms survive the
termination of this Agreement, no party hereto shall have any other or further rights or obligations under this Agreement. 
 6.2.
Conditions Precedent to Seller’s Obligations. The obligations of Seller hereunder to consummate the transactions contemplated hereunder shall in all respects be conditioned upon the satisfaction of each of the following conditions
prior to or simultaneously with the Closing (or at such earlier time as may be provided below), any of which may be waived by Seller in Seller’s sole discretion by written notice to Purchaser at or prior to the Closing Date: 
 (a) Purchaser shall have paid and Seller shall have received the Purchase Price, as adjusted pursuant to the terms and conditions of this Agreement, which
Purchase Price shall be payable in the amount and in the manner provided for in this Agreement; 
 (b) Purchaser shall have performed, in all
material respects, all covenants, agreements and undertakings of Purchaser contained in this Agreement; and 
 (c) All representations and
warranties of Purchaser as set forth in this Agreement shall be true and correct in all material respects as of the date of this Agreement and as of Closing, provided that solely for purposes of this subparagraph such warranties and representations
shall be deemed to be given without being limited to Purchaser’s knowledge and without modification (by update or otherwise, as provided in Section 5.2(b) hereof). 
 ARTICLE 7. 
 CASUALTY AND CONDEMNATION 
 7.1. Casualty. Risk of loss up to and including the Closing Date shall be borne by Seller. In the event of any immaterial damage or
destruction to the Property or any portion thereof, Seller and Purchaser shall proceed to close under this Agreement, and Seller will assign to Purchaser at the Closing Seller’s rights to receive any insurance proceeds (including any rent loss
insurance applicable to any period on and after the Closing Date) due Seller as a result of such damage or destruction (less any amounts reasonably expended for restoration or collection of proceeds), and Purchaser shall assume responsibility for
such repair and shall receive a credit at Closing for any deductible amount under said insurance policies maintained by Seller. For purposes of this Agreement, the term “immaterial damage or destruction” shall mean such instances of
damage or destruction of the subject Property: (i) which can be repaired or restored at a cost of $300,000.00 or less; and (ii) which can be restored and repaired within one hundred fifty (150) days from the date of such damage or
destruction. 
  

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 In the event of any material damage or destruction to the Property or any portion thereof, Purchaser may,
at its option, by notice to Seller given within the earlier of twenty (20) days after Purchaser is notified by Seller of such damage or destruction, or the Closing Date, but in no event less than ten (10) days after Purchaser is notified
by Seller of such damage or destruction (and if necessary the Closing Date shall be extended to give Purchaser the full 10-day period to make such election): (i) terminate this Agreement, whereupon Escrow Agent shall immediately return the
Earnest Money to Purchaser, or (ii) proceed to close under this Agreement, whereupon Seller will assign to Purchaser at the Closing the rights of Seller to receive any insurance proceeds (including any rent loss insurance applicable to the
period on or after the Closing Date) due Seller as a result of such damage or destruction (less any amounts reasonably expended for restoration), and Purchaser shall assume responsibility for such repair and shall receive a credit at Closing for any
deductible amount under said insurance policies maintained by Seller. If Purchaser fails to deliver to Seller notice of its election within the period set forth above, Purchaser will conclusively be deemed to have elected to proceed with the Closing
as provided in clause (ii) of the preceding sentence. If Purchaser elects clause (ii) above, Seller will cooperate with Purchaser after the Closing to assist Purchaser in obtaining the insurance proceeds from the applicable insurers. For
purposes of this Agreement “material damage or destruction” shall mean all instances of damage or destruction that are not immaterial, as defined herein. 
 7.2. Condemnation. If, prior to the Closing, all or any part of the Property is subjected to a bona fide threat of condemnation by a body having the power of eminent domain or is taken by eminent domain
or condemnation (or sale in lieu thereof), or if Seller has received written notice that any condemnation action or proceeding with respect to the Property is contemplated by a body having the power of eminent domain (collectively, a
“Taking”), Seller shall give Purchaser immediate written notice of such Taking. In the event of any immaterial Taking with respect to the Property or any portion thereof, Seller and Purchaser shall proceed to close under this
Agreement. For purposes of this Agreement, the term “immaterial Taking” shall mean such instances of Taking of the Property: (i) which do not result in a taking of any portion of the building structure of the Improvements on
the Property; and (ii) which do not result in a decrease in the number of parking spaces at the Property (taking into account the number of additional parking spaces that can be provided within 120 days of such Taking). 
 In the event of any material Taking of the Property or any portion thereof, Purchaser may, at its option, by written notice to Seller given within
thirty (30) days after receipt of such notice from Seller, elect to terminate this Agreement, or Purchaser may choose to proceed to close. If Purchaser chooses to terminate this Agreement in accordance with this Section 7.2, then
the Earnest Money shall be returned immediately to Purchaser by Escrow Agent and the rights, duties, obligations, and liabilities of the parties hereunder shall immediately terminate and be of no further force and effect, except for those provisions
of this Agreement which by their express terms survive the termination of this Agreement. For purposes of this Agreement “material Taking “ shall mean all instances of a Taking that are not immaterial, as defined herein. 

If Purchaser does not elect to, or has no right to, terminate this Agreement in accordance herewith on account of a Taking, this Agreement shall
remain in full force and effect and the sale of the Property contemplated by this Agreement, less any interest taken by eminent domain or 

  

 23 

 
condemnation, or sale in lieu thereof, shall be effected with no further adjustment and without reduction of the Purchase Price, and at the Closing, Seller
shall assign, transfer, and set over to Purchaser all of the right, title, and interest of Seller in and to any awards applicable to the Property that have been or that may thereafter be made for such Taking. At such time as all or a part of the
Property is subjected to a bona fide threat of condemnation and Purchaser shall not have elected to terminate this Agreement as provided in this Section 7.2, and provided that the Inspection Period has expired, (i) Purchaser shall
thereafter be permitted to participate in the proceedings as if Purchaser were a party to the action, and (ii) Seller shall not settle or agree to any award or payment pursuant to condemnation, eminent domain, or sale in lieu thereof without
obtaining Purchaser’s prior written consent thereto in each case. 
 ARTICLE 8. 
 DEFAULT AND REMEDIES 
 8.1.
Purchaser’s Default. If Purchaser fails to consummate this transaction for any reason other than the default of Seller, failure of a condition to Purchaser’s obligation to close, or the exercise by Purchaser of an express
right of termination granted herein, Seller shall be entitled, as its sole remedy hereunder, to terminate this Agreement and to receive and retain the Earnest Money as full liquidated damages for such default of Purchaser, the parties hereto
acknowledging that it is impossible to estimate more precisely the damages which might be suffered by Seller upon Purchaser’s default, and that said Earnest Money is a reasonable estimate of the probable loss of Seller in the event of default
by Purchaser. The retention by Seller of said Earnest Money is intended not as a penalty, but as full liquidated damages. The right to retain the Earnest Money as full liquidated damages is the sole and exclusive remedy of Seller in the event of
default hereunder by Purchaser, and Seller hereby waives and releases any right to (and hereby covenant that Seller shall not) sue the Purchaser: (a) for specific performance of this Agreement, or (b) to recover actual damages in excess of
the Earnest Money. The foregoing liquidated damages provision shall not apply to or limit Purchaser’s liability for Purchaser’s obligations under Sections 3.1(b), 3.1(c), 3.7 and 10.1 of this Agreement or
for Purchaser’s obligation to pay to Seller all attorneys’ fees and costs of Seller to enforce the provisions of this Section 8.1. Purchaser hereby waives and releases any right to (and hereby covenants that it shall not) sue
Seller or seek or claim a refund of said Earnest Money (or any part thereof) on the grounds it is unreasonable in amount and exceeds the actual damages of Seller or that its retention by Seller constitutes a penalty and not agreed upon and
reasonable liquidated damages. 
 8.2. Seller’s Default. If Seller fails to perform any of its obligations under this
Agreement for any reason other than Purchaser’s default or the permitted termination of this Agreement by Seller or Purchaser as expressly provided herein, Purchaser shall be entitled, as its sole remedy, either (a) to receive the return
of the Earnest Money from Escrow Agent, which return shall operate to terminate this Agreement and release Seller from any and all liability hereunder, or (b) to enforce specific performance of the obligation of Seller to execute and deliver
the documents required to convey the Property to Purchaser in accordance with this Agreement; it being specifically understood and agreed that the remedy of specific performance shall not be available to enforce any other obligation of Seller
hereunder. Purchaser expressly waives its rights to seek damages in the event of the default of Seller hereunder. Purchaser shall be deemed to have elected to terminate this Agreement and to receive a return of the Earnest Money from Escrow Agent if
Purchaser fails to file suit for specific performance against Seller in a court having jurisdiction, on or before sixty (60) days following the date upon which the Closing was to have occurred. 
  

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 ARTICLE 9. 
 ASSIGNMENT 
 9.1. Assignment. Subject to the next following sentence, this Agreement
and all rights and obligations hereunder shall not be assignable by any party without the written consent of the other, except in accordance with Section 12.11. Notwithstanding the foregoing to the contrary, this Agreement and all of
Purchaser’s rights hereunder may be transferred and assigned to any entity controlled by Purchaser. An assignment or transfer of this Agreement and Purchaser’s rights hereunder to any entity which is not controlled by Purchaser shall be
subject to Seller’s prior written consent, which consent may be granted or withheld in Seller’s sole discretion. Any assignee or transferee under any such assignment or transfer by Purchaser as to which the written consent of Seller has
been given or as to which the consent of Seller is not required hereunder shall expressly assume all of Purchaser’s duties, liabilities and obligations under this Agreement (whether arising or accruing prior to or after the assignment or
transfer) by written instrument delivered to Seller as a condition to the effectiveness of such assignment or transfer. No assignment or transfer shall relieve the original Purchaser of any duties or obligations hereunder, and the written assignment
and assumption agreement shall expressly so provide. For purposes of this Section 9.1, the term “control” shall mean the ownership of at least fifty percent (50%) of the applicable entity. Subject to the foregoing, this
Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective legal representatives, successors and permitted assigns. This Agreement is not intended and shall not be construed to create any rights in or
to be enforceable in any part by any other persons. 
 ARTICLE 10. 
 BROKERAGE COMMISSIONS 
 10.1. Broker. Upon the Closing, and only
in the event of the Closing and the funding of the Purchase Price by Purchaser, (a) Seller shall pay a brokerage commission to Seller’s Broker pursuant to a separate agreement between Seller and Seller’s Broker; and (b) Purchaser
shall pay a brokerage commission to Purchaser’s Broker pursuant to a separate agreement between Purchaser and Purchaser’s Broker. Seller’s Broker is representing Seller in this transaction, and Purchaser’s Broker is representing
Purchaser in this transaction. Seller shall and does hereby indemnify and hold Purchaser harmless from and against any and all liability, loss, cost, damage, and expense, including reasonable attorneys’ fees actually incurred and costs of
litigation, Purchaser shall ever suffer or incur because of any claim by any agent, salesman, or broker, whether or not meritorious, for any fee, commission or other compensation with regard to this Agreement or the sale and purchase of the Property
contemplated hereby, and arising out of any acts or agreements of Seller, including any claim asserted by Seller’s Broker. Likewise, Purchaser shall and does hereby indemnify and hold Seller free and harmless from and against any and all
liability, loss, cost, damage, and expense, including reasonable attorneys’ fees actually incurred and costs of litigation, Seller shall ever suffer or incur because of any claim by any agent, salesman, or broker, whether or not meritorious,
for any fee, commission or other compensation with respect to this Agreement or the sale and purchase of the Property contemplated hereby and arising out of the acts or agreements of Purchaser, including any claim by Purchaser’s Broker. This
Section 10.1 shall survive the Closing until the expiration of any applicable statute of limitations and shall survive any earlier termination of this Agreement. 
  

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 ARTICLE 11. 
 INDEMNIFICATION 
 11.1. Indemnification by Seller. Following the Closing and subject to
Sections 11.3 and 11.4, Seller shall indemnify and hold Purchaser, its affiliates, members and partners, and the partners, shareholders, officers, directors, employees, representatives and agents of each of the foregoing (collectively,
“Purchaser-Related Entities”) harmless from and against any and all costs, fees, expenses, damages, deficiencies, interest and penalties (including, without limitation, reasonable attorneys’ fees and disbursements) suffered or
incurred by any such indemnified party in connection with any and all losses, liabilities, claims, damages and expenses (“Losses”), arising out of, or in any way relating to, (a) any breach of any representation or warranty of
Seller contained in this Agreement or in any Closing Document, and (b) any breach of any covenant of Seller contained in this Agreement which survives the Closing or in any Closing Document. 
 11.2. Indemnification by Purchaser. Following the Closing and subject to Sections 11.3 and 11.4, Purchaser (and
Purchaser’s permitted assignees to whom any rights of Purchaser are assigned pursuant to Section 9.1 hereof) shall indemnify and hold Seller, its affiliates, members and partners, and the partners, shareholders, officers, directors,
employees, representatives and agents of each of the foregoing (collectively, “Seller-Related Entities”) harmless from any and all Losses arising out of, or in any way relating to, (a) any breach of any representation or
warranty by Purchaser contained in this Agreement or in any Closing Document, and (b) any breach of any covenant of Purchaser contained in this Agreement which survives the Closing or in any Closing Documents. 
 11.3. Limitations on Indemnification. Notwithstanding the foregoing provisions of Section 11.1, (a) Seller shall not be
required to indemnify Purchaser or any Purchaser-Related Entities under this Agreement unless the aggregate of all amounts for which an indemnity would otherwise be payable by Seller under Section 11.1 above exceeds the Basket Limitation
and in such event, Seller shall be responsible for only the amount in excess of the Basket Limitation, (b) in no event shall the liability of Seller with respect to the indemnification provided for in Section 11.1 above exceed in
the aggregate the Cap Limitation, (c) if prior to the Closing, Purchaser obtains knowledge in writing of any inaccuracy or breach of any representation, warranty or covenant of Seller contained in this Agreement (a “Purchaser Waived
Breach”) and nonetheless proceeds with and consummates the Closing, then Purchaser and any Purchaser-Related Entities shall be deemed to have waived and forever renounced any right to assert a claim for indemnification under this Article
11 for, or any other claim or cause of action under this Agreement, at law or in equity on account of any such Purchaser Waived Breach, and (d) notwithstanding anything herein to the contrary, the Basket Limitation and the Cap Limitation
shall not apply with respect to Losses suffered or incurred as a result of breaches of any covenant or agreement of Seller set forth in Section 5.3, Section 5.4 or Section 10.1 of this Agreement.

 11.4. Survival. The representations, warranties and covenants
contained in this Agreement and the Closing Documents shall survive for 180 days following the Closing, unless a longer or shorter survival period is expressly provided for in this Agreement, or unless on or before the date that is the
180th day following the Closing, Purchaser or Seller, as the case may be, delivers written notice to the other party
of such alleged breach specifying with reasonable detail the nature of such alleged breach and files an action with respect thereto within one hundred twenty (120) days after the giving of such notice. 
  

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 11.5. Indemnification as Sole Remedy. If the Closing has occurred, the sole and exclusive
remedy available to a party in the event of a breach by the other party to this Agreement of any representation, warranty, or covenant or other provision of this Agreement or any Closing Document which survives the Closing shall be the
indemnifications provided for under Section 3.1(c), Section 10.1, and this Article 11. 
 ARTICLE 12.

 MISCELLANEOUS 
 12.1. Notices. Wherever any notice or other communication is required or permitted hereunder, such notice or other communication shall be in writing and shall be delivered by overnight courier, hand, facsimile or other
electronic transmission, or sent by U.S. registered or certified mail, return receipt requested, postage prepaid, to the addresses or facsimile numbers set out below or at such other addresses as are specified by written notice delivered in
accordance herewith: 
  

					
	 PURCHASER:
	  	Sentinel Properties, LLC	  	
		  	8583 Strawberry Lane	  	
		  	Niwot, Colorado 80503	  	
		  	Attention: Kevin Mulshine	  	
		  	Facsimile: (        )
        -        	  	
		  	Email: kmulshine@prager.com	  	
			
	with a copy to:	  	Winzenburg, Leff, Purvis & Payne, LLP	  	
		  	1660 Lincoln Street	  	
		  	Suite 1550	  	
		  	Denver, Colorado 80264	  	
		  	Attention: Mark Payne	  	
		  	Facsimile: (303) 863-1872	  	
		  	Email: mpayne@wlpplaw.com	  	
			
	SELLER:	  	c/o Wells Real Estate Funds	  	
		  	6200 The Corners Parkway	  	
		  	Norcross, Georgia 30092	  	
		  	Attention: Mr. F. Parker Hudson	  	
		  	Facsimile: (770) 243-4684	  	
		  	Email: parker.hudson@wellsref.com	  	
			
	with a copy to:	  	Troutman Sanders LLP	  	
		  	Suite 5200	  	
		  	600 Peachtree Street, N.E.	  	
		  	Atlanta, Georgia 30308-2216	  	
		  	Attn: John W. Griffin	  	
		  	Facsimile: (404) 962-6577	  	
		  	Email: john.griffin@troutmansanders.com	  	

  

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 Any notice or other communication (i) mailed as hereinabove
provided shall be deemed effectively given or received on the third (3rd) Business Day following the postmark
date of such notice or other communication, (ii) sent by overnight courier or by hand shall be deemed effectively given or received upon receipt, and (iii) sent by facsimile or other electronic transmission shall be deemed effectively
given or received on the day of such electronic transmission of such notice or other communication and confirmation of such transmission if transmitted and confirmed prior to 6:00 p.m. local Atlanta, Georgia, time on a Business Day and otherwise
shall be deemed effectively given or received on the first Business Day after the day of transmission of such notice and confirmation of such transmission. Refusal to accept delivery shall be deemed delivered. Any notice may be given by a
party’s attorney. 
 12.2. Possession. Full and exclusive possession of the Property, subject to the Permitted Exceptions
applicable to the Property and the rights of the tenants under any new lease(s), shall be delivered by Seller to Purchaser on the Closing Date. 
 12.3. Time Periods. If the time period by which any right, option, or election provided under this Agreement must be exercised, or by which any act required hereunder must be performed, or by which the Closing must be held,
expires on a Saturday, Sunday, or holiday, then such time period shall be automatically extended through the close of business on the next regularly scheduled Business Day. 
 12.4. Publicity. The parties agree that, prior to Closing, and except for disclosures required by law or governmental regulations
applicable to such party, no party shall, with respect to this Agreement and the transactions contemplated hereby, contact or conduct negotiations with public officials, make any public announcements or issue press releases regarding this Agreement
or the transactions contemplated hereby to any third party without the prior written consent of the other party hereto. No party shall record this Agreement or any notice hereof. By execution of this Agreement, Seller is hereby giving its prior
written consent to permit Purchaser, prior to Closing, to engage in discussions and negotiations with public officials as necessary to facilitate Purchaser’s proposed improvements to the Property. The foregoing consent of Seller does not extend
to Purchaser submitting or processing any applications, or seeking any approvals, which would be binding in any way on Seller or the Property. Without the prior written consent of Seller with respect to the specific application or approval, which
consent Seller may grant or withhold in Seller’s sole discretion, Purchaser shall not submit or process any application, or seek any approval, which would be binding in any way on Seller or the Property. 
 12.5. Discharge of Obligations. The acceptance by Purchaser of the Limited Warranty Deed hereunder shall be deemed to constitute the full
performance and discharge of each and every warranty and representation made by Seller and Purchaser herein and every agreement and obligation on the part of Seller and Purchaser to be performed pursuant to the terms of this Agreement, except those
warranties, representations, covenants and agreements which are specifically provided in this Agreement to survive Closing. 
 12.6.
Severability. This Agreement is intended to be performed in accordance with, and only to the extent permitted by, all applicable laws, ordinances, rules and regulations. If any provision of this Agreement, or the application thereof to
any person or circumstance, shall, for any reason and to any extent be invalid or unenforceable, the remainder of this Agreement and the application of such provision to other persons or circumstances shall not be affected thereby but rather shall
be enforced to the greatest extent permitted by law. 
  

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 12.7. Construction. This Agreement shall not be construed more strictly against one party
than against the other merely by virtue of the fact that this Agreement may have been prepared by counsel for one of the parties, it being mutually acknowledged and agreed that Seller and Purchaser and their respective counsel have contributed
substantially and materially to the preparation and negotiation of this Agreement. Accordingly, the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the
interpretation of this Agreement or any exhibits or amendments hereto. 
 12.8. Sale Notification Letters. Promptly following
the Closing, Purchaser shall deliver the Other Notices of Sale to each service provider, the obligations under whose respective Service Contracts Purchaser has assumed at Closing. 
 12.9. Access to Records Following Closing. Purchaser agrees that for a period of twenty-four (24) months following the Closing, Seller
shall have the right during regular business hours, on five (5) days’ written notice to Purchaser, and at Seller’s sole cost, to examine and review at Purchaser’s office (or, at Purchaser’s election, at the Property), the
books and records of Seller relating to the ownership and operation of the Property which were delivered by Seller to Purchaser at the Closing. Likewise, Seller agrees that for a period of twenty-four (24) months following the Closing,
Purchaser shall have the right during regular business hours, on five (5) days’ written notice to Seller, and at Purchaser’s sole cost, to examine and review at Seller’s office, all books, records and files, if any, retained by
Seller relating to the ownership and operation by Seller prior to the Closing of the Property. The provisions of this Section shall survive the Closing for a period of twenty-four (24) months year after the Closing Date. 
 12.10. General Provisions. No failure of either party to exercise any power given hereunder or to insist upon strict compliance with any
obligation specified herein, and no custom or practice at variance with the terms hereof, shall constitute a waiver of either party’s right to demand exact compliance with the terms hereof. This Agreement contains the entire agreement of the
parties hereto, and no representations, inducements, promises, or agreements, oral or otherwise, between the parties not embodied herein shall be of any force or effect. Any amendment to this Agreement shall not be binding upon Seller or Purchaser
unless such amendment is in writing and executed by Seller and Purchaser. Subject to the provisions of Section 9.1 hereof, the provisions of this Agreement shall inure to the benefit of and be binding upon the parties hereto and their
respective heirs, legal representatives, successors, and permitted assigns. Time is of the essence in this Agreement. The headings inserted at the beginning of each paragraph are for convenience only, and do not add to or subtract from the meaning
of the contents of each paragraph. This Agreement shall be construed, interpreted and enforced under the laws of the State of Colorado. Except as otherwise provided herein, all rights, powers, and privileges conferred hereunder upon the parties
shall be cumulative but not restrictive to those given by law. All personal pronouns used in this Agreement, whether used in the masculine, feminine, or neuter gender shall include all genders, and all references herein to the singular shall include
the plural and vice versa. 
 12.11. Like-Kind Exchange. Any of the parties hereto may desire, and each other party is willing
to cooperate (subject to the limitations set forth below), to effectuate the sale of the Property by means of an exchange of “like-kind” property which will qualify as such under Section 1031 of the Internal Revenue Code of 1986, as
amended, and the regulations promulgated thereunder. Each party expressly reserves the right to assign its rights, but not its obligations, hereunder to a qualified intermediary as provided in I.R.C. Reg. 1.1031(k)-1(g)(4) 

  

 29 

 
on or before the date of Closing. Upon written notice from any party (a “Requesting Party”) to the other, the party to whom such notice is
given (the “Other Party”) agrees to cooperate with such Requesting Party to effect one or more like-kind exchanges with respect to the Property, provided that such cooperation shall be subject to the following conditions:
(a) such exchange shall not delay the Closing and shall occur either simultaneously with the Closing or the purchase money proceeds payable to Seller shall be paid, upon Seller’s prior written direction to Purchaser, to a third party
escrow agent or intermediary such that Purchaser shall not be required to participate in any subsequent closing, (b) the Other Party shall not be obligated to spend any sums or incur any expenses in excess of the sums and expenses which would
have been spent or incurred by the Other Party if there had been no exchange, and (c) Purchaser shall not be obligated to acquire or accept title to any property other than the Property, and Seller shall not be obligated to acquire or accept
title to any property. The Other Party makes no representation or warranty that the conveyance of the Property made pursuant to this Section 12.11 shall qualify for a like-kind exchange. Once Purchaser has paid the purchase money
proceeds as directed by Seller (if Seller is the Requesting Party), or Seller has conveyed the Property as directed by Purchaser (if Purchaser is the Requesting Party), the Other Party shall have no further obligation hereunder with respect to such
“like-kind” exchange. Each Requesting Party hereby indemnifies and holds the Other Party harmless from and against any costs, liabilities and expenses incurred or suffered by the Other Party in connection with the “like-kind”
exchange or exchanges described herein with respect to the Property, which indemnity shall survive the Closing until the expiration of any applicable statute of limitations. 
 12.12. Attorney’s Fees. If Purchaser or Seller bring an action at law or equity against the other in order to enforce the provisions
of this Agreement or as a result of an alleged default under this Agreement, the prevailing party in such action shall be entitled to recover court costs and reasonable attorney’s fees actually incurred from the other. 
 12.13. Counterparts. This Agreement may be executed in one or more counterparts, each of which when taken together shall constitute one and
the same original. To facilitate the execution and delivery of this Agreement, the parties may execute and exchange counterparts of the signature pages by facsimile, and the signature page of either party to any counterpart may be appended to any
other counterpart. 
 12.14. Effective Agreement. The submission of this Agreement for examination is not intended to nor shall
constitute an offer to sell, or a reservation of, or option or proposal of any kind for the purchase of the Property. In no event shall any draft of this Agreement create any obligation or liability, it being understood that this Agreement shall be
effective and binding only when a counterpart of this Agreement has been executed and delivered by each party hereto. 
 [Signatures
commence on following page] 
  

 30 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day, month and year first above written.

  

									
	SELLER:
	
	THE FUND IX, FUND X, FUND XI and REIT JOINT VENTURE
		
	By:	 	 Wells Real Estate Fund IX, L.P., a Georgia
 limited partnership

			
		 	By:	 	 Wells Partners, L.P., a Georgia limited partnership,
 general partner

				
		 		 	By:	 	 Wells Capital, Inc., a Georgia corporation,
 general partner

					
		 		 		 	By:	 	 /s/ Douglas P. Williams

		 		 		 	Name:	 	Douglas P. Williams
		 		 		 	Title:	 	Senior Vice President
			
		 	By:	 	 /s/ Douglas P. Williams, Attorney-in-Fact
 Leo F. Wells, III, general partner

		
	By:	 	Wells Real Estate Fund X, L.P., a Georgia limited partnership
			
		 	By:	 	 Wells Partners, L.P., a Georgia limited partnership,
 general partner

				
		 		 	By:	 	 Wells Capital, Inc., a Georgia corporation,
 general partner

					
		 		 		 	By:	 	 /s/ Douglas P. Williams

		 		 		 	Name:	 	Douglas P. Williams
		 		 		 	Title:	 	Senior Vice President
			
		 	By:	 	 /s/ Douglas P. Williams, Attorney-in-Fact

		 		 	Leo F. Wells, III, general partner
		
	By:	 	Wells Real Estate Fund XI, L.P., a Georgia limited partnership
			
		 	By:	 	 Wells Partners, L.P., a Georgia limited partnership,
 general partner

				
		 		 	By:	 	 Wells Capital, Inc., a Georgia corporation,
 general partner

					
		 		 		 	By:	 	 /s/ Douglas P. Williams

		 		 		 	Name:	 	Douglas P. Williams
		 		 		 	Title:	 	Senior Vice President
			
		 	By:	 	 /s/ Douglas P. Williams, Attorney-in-Fact
 Leo F. Wells, III, general partner

		 		 
		
	By:	 	Wells Operating Partnership, L.P., a Delaware limited partnership
			
		 	By:	 	Wells Real Estate Investment Trust, Inc., a Maryland corporation, general partner
				
		 		 	By:	 	 /s/ Douglas P. Williams

		 		 	Name:	 	Douglas P. Williams
		 		 	Title:	 	Senior Vice President

 [Signatures continued on following page] 
  

 31 

 [Signatures continued from previous page] 
  

			
	PURCHASER:
	
	 SENTINEL PROPERTIES, LLC,
 a Colorado
limited liability company

		
	By:	 	 /s/ Kevin Mulshine

	Name:	 	Kevin Mulshine
	Title:	 	Manager

  

 32 

 EXHIBIT “A” 
 LEGAL DESCRIPTION OF LAND 
 LOT 1, BLOCK 1, CENTENNIAL VALLEY BUSINESS PARK FILING NO. 2,
ACCORDING TO PLAN FILE P-20 NO. 15, COUNTY OF BOULDER, STATE OF COLORADO.

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