Document:

exv10w52

Exhibit 10.52

AMENDMENT NO. 1 TO

EMPLOYMENT AGREEMENT DATED FEBRUARY 8, 2006

WITH JAY FRITZ

     This Amendment No. 1 by and between Midwest Banc Holdings, Inc. (the “Employer”)
and Jay Fritz (the “Employee”), dated effective as of
March 12, 2008.

R  E  C  I  T  A  L  S

     A. The Employer (who acquired Royal American Corporation on July 1, 2006) and
the Employee are parties to an Employment Agreement entered into as of June 15, 2004 and
amended and restated effective February 8, 2006 (the “Agreement”) governing the terms and
conditions of Employee’s employment with the Employer.

     B. The Employer and the Employee desire to amend certain provisions to the
Agreement to comply with Section 409A of the Internal Revenue Code and the Treasury
regulations thereunder.

          NOW THEREFORE, the parties agree as follows:

     1. Paragraph A of Section 5 of the Agreement is amended in its entirety to read as follows, effective January 1, 2008:

     A. Termination By Employer. In the event that the Employee’s
employment is terminated by the Employer prior to November 1, 2010, unless such
termination by the Employer is for Due Cause (as defined in paragraph B), the
Employee shall continue to receive the compensation and benefits as provided in
Section 3 and 4 of the Agreement for three (3) years, without regard to Employee’s
continued service. The schedule for the time of the salary payments will be the
same schedule as the time for receiving salary payments during the period of the
Employee’s employment. Similarly, the form of the payment shall be the same form as
the Employee was receiving during the period of the Employee’s employment. The
schedule for the time and form of payment are fixed as provided herein and may not
be modified by the Employee or the Employer without compliance with Section 409A of
the Internal Revenue Code (the “Code”). All other rights and benefits that the
Employee may have under any benefit plans or programs of the Employer shall be
determined in accordance with the terms and conditions of such plans or programs
based upon the date of the Employee’s actual termination of employment with the
Employer.

     2. Paragraph C of Section 5 of the Agreement is amended in its entirety to read as
follows, effective January 1, 2008:

     C. Disability. In the event the Employee suffers from a “Disability”
(as hereinafter defined), the Employee’s employment with Employer shall terminate
on the date on which the Disability occurs, but the Employee shall

 

 

continue to receive the Base Salary for a period of ninety (90) days from the date
of termination and Employer-paid health insurance coverage as described in Section
1 above for the Employee and his spouse (if the Employee is married on the date of
termination) until the Employee and his spouse reach age sixty-five (65) or such
later age as necessary for Medicare eligibility. The schedule for the time of the
salary payments and the in-kind health insurance coverage will be the same schedule
as the time for receiving salary payments and the in-kind health insurance coverage
during the period of the Employee’s employment. Similarly, the form of the payment
shall be the same form as the Employee was receiving during the period of the
Employee’s employment. The schedule for the time and form of payment are fixed as
provided herein and may not be modified by the Employee or the Employer without
compliance with Section 409A of the Code. In no event may the Employer substitute
cash or cash equivalents for the Employer-paid health insurance coverage. All other
rights and benefits that the Employee may have under any benefit plans or programs
of the Employer shall be determined in accordance with the terms and conditions of
such plans or programs based upon the date of the Employee’s actual termination of
employment with the Employer. For purposes of this Agreement, “Disability” shall
mean the inability or incapacity (by reason of a medically determinable physical or
mental impairment) of the Employee to perform the duties and responsibilities
related to the job or position with the Employer described in Section 2 of this
Agreement for a period that lasts, or can reasonably be expected to last, more than
180 days. Such inability or incapacity shall be documented to the reasonable
satisfaction of the Employer by the appropriate correspondence from registered
physicians reasonably satisfactory to the Employer, and the Employee agrees to
submit to an examination by the Employer’s physicians for the purpose of making
such determination.

     3. Paragraph D of Section 5 of the Agreement is amended in its entirety to read as
follows, effective January 1, 2008:

     D. Death. In the event of the death of the Employee, the Employee’s
employment with Employer shall terminate on the date on the date of death. The
estate or named beneficiary of the Employee shall continue to receive the Base
Salary for a period of ninety (90) days from the date of termination. If the
Employee is married at the date of termination, the Employee’s spouse shall receive
Employer-paid health insurance coverage to be determined by the Employer until the
spouse remarries or reaches age sixty-five (65) or such later age as necessary for
Medicare eligibility. The schedule for the time of the salary payments and the
in-kind health insurance coverage will be the same schedule as the time for
receiving salary payments and the in-kind health insurance coverage during the
period of the Employee’s employment. Similarly, the form of the payment shall be
the same form as the Employee was receiving during the period of the Employee’s
employment. The schedule for the time and form of payment are fixed as provided
herein and may not be modified by the Employee or the Employer without compliance
with Section 409A of the Internal Revenue Code (the “Code”). In no event may the
Employer substitute cash or cash equivalents for the Employer-paid health insurance
coverage. All other rights and benefits

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that the Employee (or his estate or named beneficiary) may have under any benefit
plans or programs of the Employer shall be determined in accordance with the terms
and conditions of such plans or programs based upon the date of the Employee’s
actual termination of employment with the Employer on the date of death.

     4. Section 6 of the Agreement is amended in its entirety to read as follows, effective
January 1, 2008:

     6. Change in Control. For purposes of this Agreement, “Change in
Control” shall mean a change in the ownership or effective control of the Employer,
or in the ownership of a substantial portion of the assets of the Employer as
provided in Section 409A(a)(2)(A)(v) of the Code and the final Treasury regulations
thereunder. In accordance with the final Treasury regulations, “Change in Control”
means any one of the events described below

     A. Change in Ownership. A change in the ownership of the
Employer occurs on the date that any person or persons acting as a group
acquires ownership of stock of the Employer that, together with stock
held by such person or group, constitutes more than fifty (50) percent of
the total fair market value or total voting power of the stock of such
Employer. If a person or group is considered to own more than fifty (50)
percent of the total fair market value or total combined voting power of
the stock of the Employer, the acquisition of additional stock by the same
person or persons is not considered to cause a change in the ownership of
the Employer (or to cause a change in the “effective control of the
Employer” within the meaning of Section 6.C).

     B. Change in Effective Control. A change in the effective
control of the Employer occurs on the date that a majority of the
Employer’s board of directors is replaced during any 12-month period by
directors whose appointment or election is not endorsed by a majority of
the members of the Employer’s board of directors prior to the date of the
appointment or election.

     C. Change in Ownership of a Substantial Portion of the
Employer’s Assets. A change in the ownership of a substantial portion of
the Employer’s assets occurs on the date that any person or group
acquires (or has acquired during the 12-month period ending on the date
of the most recent acquisition by such person or persons) assets from the
Employer that have a total gross fair market value equal to or more than
fifty (50) percent of the total gross fair market value of all of the
assets of
the Employer immediately prior to such acquisition or acquisitions. For
purposes of this Agreement, “Good Reason” shall mean, without the
Employee’s express written consent, the occurrence of any of the
following: (v) a significant adverse change in the nature or scope of
Employee’s position, duties or responsibilities as in effect immediately
after the Effective Time; (w) a relocation of Employee’s principal office

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to an office that is more than thirty-five (35) highway miles from Employee’s principal
office immediately prior to the Effective Time, unless such relocation does not increase
the actual distance required for Employee to commute from his home to the new place of
business by more than ten (10) miles; (x) a reduction of the Employee’s annual salary to
a rate which is less than the Employee’s annual salary rate as of the Effective Time; (y)
a breach of this Agreement by the Employer; or (z) providing Employee incentive
compensation opportunities which are materially less favorable to Employee than the
opportunities provided to Employee as of immediately after the Effective Time (it being
understood that incentive compensation is based upon performance and that there are no
minimum guaranteed amounts of actual incentive compensation). If following a Change in
Control of the Employer, the Employee is terminated by the Employer or a related employer
for reasons other than Cause, death or Disability, or the Employee voluntarily terminates
employment for “Good Reason” (as defined below), the Employer shall, without regard to
the notice period described in Section 1 above, receive the following:

     Y. A monthly payment equal to one twelfth (1/12) of the Employee’s average
total annual compensation for the last three (3) years of full-time employment.
For purposes of this subsection, the term “total annual compensation” shall mean
the dollar value of the benefits provided in Section 3 of this Agreement. The
Employee shall receive such monthly payments for a period of thirty-five (35)
months commencing the month his employment is terminated. The schedule for the
time of the monthly payments will be the same schedule as the time for receiving
salary payments during the period of the Employee’s employment. Similarly, the
form of the payment shall be the same form as the Employee was receiving during
the period of the Employee’s employment. The schedule for the time and form of
payment are fixed as provided herein and may not be modified by the Employee or
the Employer without compliance with Section 409A of the Code.

     Z. Employer-paid health insurance coverage as described in Section 1 above
for the Employee and his spouse (if the employee is married on the date of
termination) until the Employee and his spouse reach age sixty-five (65) or such
later age as necessary for Medicare eligibility. The schedule for the time of
the in-kind health insurance coverage will be the same schedule as the time for
receiving the in-kind health insurance coverage during the period of the
Employee’s employment. In no event may the Employer substitute cash or cash
equivalents for the Employer-paid health insurance coverage.

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     Notwithstanding the foregoing, payments to the Employee may not exceed
299% of his Base Amount as defined in Section 280G(b)(3) of the Code (“Change
in Control Payment”); provided, however, if the Change in Control Payment to
Employee would cause the Employer to contravene any law, regulation or policy
applicable to the Employer, the Employer and Employee agree that such Change
in Control Payment shall be made to the extent permitted by law, regulation
and policy, and the remainder of such Change in Control Payment shall be made
from time to time at the earliest time permitted by law, regulation and
policy.

     In the event the Employee’s employment is terminated due to a Change in
Control, receipt of the payments and benefits in this Section is conditioned
upon the Employee’s compliance with the restrictive covenants contained in
the following Sections 7 or 8.

     5. Sections 9A and 9B of the Agreement are amended in their entirety to read as
follows, effective January 1, 2008:

	 	 	 	 	 
	 

	 	A.
	 	If to the Employer, addressed to it at:
	 
	 

	 	 	 	Midwest Banc Holdings, Inc.
	 

	 	 	 	Chairman of the Compensation Committee
	 

	 	 	 	501 W. North Ave.
	 

	 	 	 	Melrose Park, IL 60160
	 
	 	 	 	 
	 

	 	 	 	with a copy to
	 
	 	 	 	 
	 

	 	 	 	Midwest Banc Holdings, Inc.
	 

	 	 	 	Chief Executive Officer
	 

	 	 	 	501 W. North Ave.
	 

	 	 	 	Melrose Park, IL 60160
	 
	 	 	 	 
	 

	 	B.
	 	If to the Employee, addressed to his attorney at:
	 
	 	 	 	 
	 

	 	 	 	Donald L. Norman, Esq.
	 

	 	 	 	Barack Ferrazzano Kirschbaum & Nagelberg, LLC
	 

	 	 	 	200 W. Madison St.
	 

	 	 	 	Chicago, IL 60606

     6. Section 20 of the Agreement is amended in its entirety to read as follows,
effective January 1, 2008:

     20. Restriction on Timing of Distributions. Notwithstanding any
provision of this Agreement to the contrary, if the Employee is considered a
Specified Employee (as defined herein), the provisions of this Section 20 shall
govern all distributions hereunder. If benefit distributions which would otherwise
be made to the Employee due to Termination of Employment are limited because the
Employee is a Specified Employee, then such distributions

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shall not be made during the first six (6) months following Termination of
Employment. Rather, any distribution which would otherwise be paid to the Employee
during such period shall be accumulated (without the adjustment for the time value
of money) and paid to the Employee in a lump sum on the first day of the seventh
month following Termination of Employment. All subsequent distributions shall be
paid in the manner specified. The term “Specified Employee” means an employee who,
as of the date of the employee’s Termination of Employment, is a key employee of
the Employer. Notwithstanding the foregoing, an employee is a Specified Employee
only if the stock of the Employer or any entity with whom the Employer would be
considered a single employer under Section 414(b) or Section 414(c) of the Code is
publicly traded on an established securities market or otherwise. For purposes of
this Agreement, an employee is a key employee if the employee meets the
requirements of Section 416(i)(l)(A)(i), (ii), or (iii) of the Code (applied in
accordance with the regulations thereunder and disregarding Section 416(i)(5)) at
any time during the twelve (12) month period ending on December 31 (the
“identification period”). For purposes of identifying a Specified Employee, the
definition of compensation under Treasury Regulation Section 1.415(c)-2(a) is
used, applied as if the Employer were not using any safe harbor provided in
Treasury Regulation Section 1.415(c)-2(d), were not using any of the special
timing rules provided in Treasury Regulation Section 1.415(c)-2(e), and were not
using any of the special rules provided in Treasury Regulation Section
1.415(c)-2(g). If the Employee is a key employee during an identification period,
the Employee is treated as a key employee for purposes of this Agreement during
the twelve (12) month period that begins on the first day of April following the
close of the identification period.

*    *    *

     IN WITNESS WHEREOF, the Employee and a duly authorized officer of the Employer have executed
this Amendment No. 1 as of the date set forth above.

	 	 	 	 	 
	 

	 	Employer:
	Employee:	 	MIDWEST BANC HOLDINGS, INC. for itself
and its Subsidiaries
	 
	 	 	 	 
	/s/  Jay
Fritz

	 	By:	 	/s/  James J. Giancola
	 

	 	 	 	 
	Jay
Fritz

	 	Title:
	 	President & CEO

6exv10w53

Exhibit-10.53

AGREEMENT OF PURCHASE AND SALE

     THIS AGREEMENT OF PURCHASE AND SALE (the “Agreement”) is made and entered into as of the
10th day of March, 2008 by and between MIDWEST BANK AND TRUST COMPANY, an Illinois
banking corporation, as seller (“Seller”), and PGG, LLC, an Illinois limited liability company, as
purchaser (“Purchaser”).

R  E  C  I  T  A  L  S:

          A. Seller is the record owner of (i) a parcel of real estate improved with a bank building
(the “Building”) located at 1601 North Milwaukee Avenue, Chicago, Illinois, together with a vacant
lot located immediately north of and adjacent to the Building (collectively the “Milwaukee
Parcel”), and (ii) a parcel of vacant land currently used as a parking lot located at 1611-1617
North Damen Avenue, Chicago, Illinois (the “Damen Parcel”); and

          B. Seller desires to sell, transfer and convey the Milwaukee Parcel and the Damen Parcel to
Purchaser and Purchaser desires to purchase the Milwaukee Parcel and the Damen Parcel from Seller,
subject to and in accordance with the terms and conditions set forth below.

C  L  A  U  S  E  S:

     In consideration of the premises and the mutual representations, covenants, undertakings and
agreements contained below, and for other good and valuable consideration, the receipt and legal
sufficiency of which are hereby acknowledged, Seller and Purchaser represent, covenant, undertake
and agree as follows:

          1. AGREEMENT OF SALE AND PURCHASE. Seller agrees to sell, transfer and convey to
Purchaser, and Purchaser agrees to purchase from Seller, all for a purchase price and subject to
and upon each of the terms and conditions set forth below, the following:

     1.1. Property. The Milwaukee Parcel and the Damen Parcel, together with all
right, title and interest of Seller in and to all easements, tenements, hereditaments,
privileges and appurtenances thereto and all of the buildings and improvements located on
the Milwaukee Parcel (collectively the “Improvements”) (the Milwaukee Parcel, the Damen
Parcel and the Improvements are sometimes hereinafter collectively referred to as the
“Property”).

     1.2. Personalty. With the exclusion of all property used by Seller in
connection with its banking operations, and with the exception of all artwork (other than
drawings, paintings, renderings and depictions of the Building which shall be included with
the sale of the Property), all personal property and other tangible property, whether
enumerated in this Agreement or not, in which Seller has an interest, now or subsequently
located on the Property and/or used in connection with the operation or maintenance of the
Improvements, including, without limitation, all equipment, apparatus, machinery, cranes,
appliances, furnishings, signs, site plans, surveys, soil and substrata studies,
architectural renderings,

 

 

plans and specifications, engineering plans and studies, floor plans and other plans or
studies of any kind; all furniture, furnishings and carpeting; all heating, lighting,
plumbing, electrical and air-conditioning fixtures and equipment, all hot water heaters,
furnaces, heating controls, motors and boiler pressure systems and equipment; all shelving
and partitions; all ventilating, incinerating, disposal, cleaning, snow removal and
landscaping equipment; all storm and screen doors and windows; and all building supplies,
fixtures and repair equipment (collectively the “Personalty”).

     1.3. Intangible Property. With the exception of all intangible property related
to Seller’s banking operations, intangible property, whether enumerated in his Agreement or
not, owned, controlled or held by Seller between the date of this Agreement and the “Closing
Date” (as defined in paragraph 14 below), now or subsequently used in connection with the
operation or maintenance of the Property, including but not limited to all leases, licenses
and other agreements to occupy all or any part of the Property; all claims, warranties,
guarantees and sureties, if any, given in connection with the construction, improvement or
equipment of or pertaining to the Property; all air rights, excess floor area rights and
other development rights relating to or appurtenant the Property; all rights to obtain
utility service in connection with the Property; all assignable licenses, permits and
approvals relating to the Property; all service contracts for the benefit of the Property
which Purchaser desires to assume; all rights to use any name by which the Property may be
commonly called; and all architectural, engineering and construction plans, tests, reports,
drawings and specifications (collectively the “Intangible Property”).

     1.4. Appurtenant Rights. All right, title and interest of Seller to land, if
any, lying in the bed of any street, road or avenue, open or proposed, at the foot of or
adjoining the Property to the center line of such street, road or avenue, and to the use of
all easements, if any, whether of record or not, appurtenant to the Property and the use of
all strips and rights-of-way, if any, abutting, adjacent to, contiguous to or adjoining the
Property (collectively the “Appurtenant Rights”).

          2. PURCHASE PRICE AND MANNER OF PAYMENT. The total purchase price (the “Purchase
Price”) to be paid to Seller by Purchaser for the Property is Eighteen Million Three Hundred Fifty
Thousand and 00/100 Dollars ($18,350,000.00). Purchaser reserves the right to reasonably allocate
the Purchase Price between the Milwaukee Parcel and the Damen Parcel, and upon notice thereof from
Purchaser to Seller prior to the Closing Date, Seller agrees to cooperate with Purchaser and
allocate the Purchase Price as determined by Purchaser.

          3. PAYMENT OF PURCHASE PRICE. The Purchase Price shall be satisfied or paid to Seller
in the following manner and at the following times:

     3.1. Earnest Money. Purchaser shall deliver to Seller herewith a check in the
amount of Five Hundred Thousand and 00/100 Dollars ($500,000.00) (the “Earnest Money”)
payable to Chicago Title & Trust Company (“Escrowee”). The Earnest Money shall be held by
Escrowee in a strict joint order escrow account for the benefit of both parties. At
Purchaser’s option, the Earnest Money may be invested in an interest-bearing

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money market account or an alternative investment satisfactory to Purchaser. All interest
earned on the Earnest Money shall be delivered to the party entitled to receive the Earnest
Money; provided, however, on the Closing Date the Earnest Money (exclusive of interest
earned thereon) shall be applied against the Purchase Price and the interest thereon shall
be delivered to Purchaser.

     3.2. Balance of Purchase Price. On the Closing Date, Purchaser shall pay to
Seller, by certified or cashier’s check or by wire transfer, the balance of the Purchase
Price in the amount of Seventeen Million Eight Hundred Fifty Thousand and 00/100 Dollars
($17,850,000.00), plus or minus prorations.

          4. TITLE INSURANCE. Seller has delivered to Purchaser commitment number 8431838
dated February 8, 2008, for an ALTA 2006 owner’s title insurance policy effective as of the Closing
Date (the “Title Commitment”) issued by Chicago Title Insurance Company (the “Title Insurer”) in
the amount of the Purchase Price. The Title Commitment at closing shall be modified to show
Purchaser as the proposed insured, and showing insurable title to the Property to be in Seller
subject only to (1) general real estate taxes not yet due and payable, (2) title exception H noted
in the Title Commitment, (3) matters disclosed by the “Survey” (as defined in paragraph 5 below)
which are not “Survey Defects”, (4) the rights of Seller under this Agreement, (5) rights of
Broadline, Inc., Jungle Gym Fitness Corporation and the Wicker Park/Bucktown Chamber of Commerce
(the “Tenants”) under their respective leases (the “Leases”), (6) matters arising out of any act of
Purchaser or its representatives (the “Purchaser’s Representatives”), and (7) title exceptions
pertaining to liens or encumbrances of a definite or ascertainable amount which may be removed by
the payment of money or otherwise on the Closing Date and which Seller shall so remove at that time
(collectively the “Permitted Encumbrances”). At closing, Seller shall cause the Title Insurer to
issue to Purchaser either an owner’s title insurance policy or a marked copy of the Title
Commitment with (i) extended coverage over all general exceptions, (ii) a 3.1 zoning endorsement
with parking, (iii) an access endorsement, (iv) a location note endorsement, (v) a survey
endorsement, (vi) a tax parcel endorsement, (vii) a utility facility endorsement, (viii) a
contiguity endorsement, if applicable, (ix) a subdivision endorsement, (x) an endorsement deleting
the creditors’ rights exception, (xi) a restrictions or ALTA 9.2 endorsement, and (xii) such other
title endorsements as Purchaser shall reasonably request (the “Title Policy”) in conformity with
the provisions of this paragraph 4. The Title Policy shall reflect the allocation of the Purchase
Price between the Milwaukee Parcel and the Damen Parcel as described in paragraph 2 above. The
costs of the Title Policy, all title endorsements thereto and any update or later date fees shall
be paid for by Seller.

          5. PLAT OF SURVEY. Seller shall furnish or cause to be furnished to Purchaser, within
five (5) business days after the date of this Agreement, a currently dated plat of survey (the
“Survey”) certified to Purchaser, Purchaser’s lender, the Title Insurer and such other parties
designated by Purchaser and made by a registered Illinois land surveyor in accordance with the
Minimum Standard Detail Requirements for ALTA/ACSM Land Title Surveys, jointly established and
adopted by ALTA and ACSM in 1992, and shall include item numbers 1, 3, 4, 7(a), 7(b)(l), 7(c), 8,
9, 10, 11 and 14 from Table A thereof, or such other standards acceptable to Purchaser, (i)
depicting the location and dimensions of the Property and all of the Improvements

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thereon; (ii) indicating the street address and legal description of the Property, the square
footage of the Property and each of the Improvements, and the number of parking spaces, if any;
(iii) showing all curb cuts, driveways, parking spaces, if any, streets and alleys adjacent to the
Property and vehicular access from the Property to said streets and alleys; (iv) showing the
present location of all recorded easements, visible easements, utility lines and building lines on
the Property and without any encroachments onto or over easements, building lines, rights of way or
any adjoining property; and (v) showing no encroachments onto the Property from any adjoining
property. The Survey shall further certify that the Property is not located in an area identified
by an agency or department of the federal government as having special flood or mudslide hazards
which would require flood insurance under the Flood Insurance Act of 1968, as amended from time to
time, or under any other applicable law or regulation. The cost of the Survey shall be paid for by
Seller. The Survey must be sufficient to enable the Title Insurer to delete the general survey
exception and to issue the Title Policy free from any survey exceptions whatsoever. Purchaser shall
notify Seller within three (3) business days after Purchaer’s receipt of the Survey as to whether
the same discloses any matter that renders title to the Property unmarketable or uninsurable
(“Survey Defect”). In absence of such notice, it shall be conclusively presumed that there are no
Survey Defects.

          6. TITLE DEFECTS. If the Title Commitment or the Survey delivered by Seller discloses
exceptions other than Permitted Encumbrances (the “Non-Permitted Exceptions”) or Survey Defects,
Seller shall have until the Closing Date to have the Non-Permitted Exceptions removed from the
Title Commitment or to correct such Survey Defects, or to have the Title Insurer commit to insure
against any loss or damage that may be occasioned by such Non- Permitted Exceptions or Survey
Defects. Seller shall in good faith use its best efforts to have such Non-Permitted Exceptions
removed, Survey Defects cured and/or have the Title Insurer commit to insure over such
Non-Permitted Exceptions or Survey Defects on or before the Closing Date. If Seller fails to have
the Non-Permitted Exceptions removed, any such Survey Defects corrected or have the Title Insurer
commit to insure over such Non-Permitted Exceptions or Survey Defects, then Purchaser may elect to
(i) terminate this Agreement by delivering written notice thereof to Seller and promptly receive a
return of the Earnest Money and all interest accrued thereon; or (ii) accept title to the Property
as it then is with the right to deduct liens or encumbrances of a definite or ascertainable amount
from the Purchase Price to be paid on the Closing Date.

          7. PRORATIONS AND ADJUSTMENTS. The following items shall be paid, prorated and
adjusted as of the Closing Date as follows:

     7.1. General real estate taxes for 2007 and 2008 levied against the Property which are
not then due and payable shall be prorated at closing based on one hundred percent (100%) of
the amount determined by multiplying the most recent assessed valuation of the Property by
the most recent tax rate and state equivalization factor. The tax prorations shall be
reprorated upon the issuance of the actual tax bills for 2007 and 2008. This provision shall
survive the Closing Date.

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     7.2. Seller shall, pursuant to the terms of a post-closing occupancy agreement (the
“Post-Closing Occupancy Agreement”), retain use and occupancy of the Improvements on the
Milwaukee Parcel for a period not less than nine (9) months and not more than eighteen (18) months,
at a monthly use and occupancy charge of Seventy-Five Thousand and 00/100 Dollars ($75,000.00),
payable on the first day of each calendar month during the term of said Post-Closing Occupancy
Agreement. Seller shall also pay to Purchaser fifty percent (50%) of all (i) real estate taxes,
and (ii) insurance premiums for casualty and liability insurance relating to the Building during
the term of the Post-Closing Occupancy Agreement. The Post-Closing Occupancy Agreement will
provide that Seller may terminate its Post-Closing Occupancy Agreement at any time after nine (9)
months have elapsed, but Seller shall give Purchaser not less than thirty (30) days prior written
notice of Seller’s intention to (i) terminate the Lease, and (ii) vacate and surrender possession
of the Milwaukee Parcel to Purchaser.

     7.3. All charges for gas, electricity, water, telephone and all other utilities shall be paid
by Seller through and including the date that Seller terminates the Lease and surrenders possession
of the Milwaukee Parcel to Purchaser. Final meter readings shall be ordered by Seller as of said
date. There shall be no proration of utility charges on the Closing Date.

     7.4. Rent due from tenants under the Leases shall be prorated as of the Closing Date.

     7.5. On the Closing Date, Seller shall give Purchaser cash credits for all (i) tenant security
deposits (including accrued interest thereon owed to tenants, if any) paid by tenants under the
Leases, and (ii) unapplied real estate tax escrow payments made by tenants under the Leases.

     7.6. Any prepaid amounts under any service contracts which Purchaser has expressly agreed in
writing to assume shall be prorated as of the Closing Date.

     7.7. Owner’s title insurance charges, surveyor’s fees, transfer taxes imposed by the State of
Illinois and Cook County, one-half (1/2) of the deed and money escrow fee, one-half (1/2) of the
N.Y. Style closing fee, the recording fees for releasing or discharging any encumbrances from the
Property and all other customary seller’s charges shall be paid for by Seller. All loan title
insurance charges, transfer taxes imposed by the City of Chicago, one-half (1/2) of the deed and
money escrow fee, one-half (1/2) of the N.Y. Style closing fee and customary purchaser’s title and
recording charges shall be paid for by Purchaser.

     7.8. All accounts payable and other obligations incurred by Seller prior to the Closing Date
relating to the Property shall be paid or performed by or on behalf of Seller on or before the
Closing Date, or as soon as practicable after the Closing Date, and Purchaser assumes no obligation
or responsibility for the payment or performance of such obligations.

5

 

          8. REPRESENTATIONS, WARRANTIES AND COVENANTS OF SELLER,
Seller represents and warrants to Purchaser that as of the date of this Agreement, and Seller
covenants to Purchaser that as of the Closing Date:

     8.1. Seller is and will be the owner of fee simple title to the Property, subject only
to those matters noted in the Title Commitment and such other defects, liens or encumbrances
as Purchaser may elect to waive under the provisions of paragraph 6 above.

     8.2. The Lease is the only lease affecting the Property, and no third party other than
Seller has any right to possession of all or any portion of the Property.

     8.3. Neither Seller nor any of its agents has received any written notices from any
municipal, county, state or other governmental authority of any environmental, zoning,
building, tenants’ rights, fire, health code or any other violation(s) of any statutes,
laws, codes, ordinances, rules or regulations with respect to the Property which will not
have been corrected by Seller prior to the Closing Date. Seller shall promptly (i) comply
with any such written notices received after the date of this Agreement and prior to the
Closing Date, and (ii) deliver copies of any such written notices to Purchaser.

     8.4. There are and will be no liens, claims or unpaid taxes against Seller and/or
applicable to the Property for federal withholding taxes or state sales, retailer occupation
or unemployment taxes, or any other taxes or charges whatsoever, except general real estate
taxes which are not yet due and payable.

     8.5. There are and will be no recorded or unrecorded mechanics’ or
materialmens’ liens or any claims for such liens affecting the Property, and as of the
Closing Date, there will be no work or materials performed or furnished affecting the
Property for which payment will not have previously been made. Seller will furnish Purchaser
with an affidavit to this effect on the Closing Date.

     8.6. There are and will be no contracts, agreements, leases, licenses, invoices, bills
or understandings of any nature, written or oral, formal or informal, other than those
delivered to Purchaser under paragraph 10 below, which Purchaser, as the prospective owner
of the Property, will be required to assume or pay, or to which Purchaser may, as a
consequence of entering into this Agreement or purchasing the Property, become bound without
Purchaser’s express prior written consent.

     8.7. There are no condemnation or judicial proceedings, administrative actions or
examinations, claims, litigation or other proceedings of any type which have been instituted
or are pending or which, to the best of Seller’s knowledge, are threatened against all or
any portion of the Property, or which affect Seller’s ability to enter into and fulfill its
obligations under this Agreement. No attachments, execution proceedings, assignments for the
benefit of creditors, insolvency, bankruptcy, reorganization or other proceedings are
pending, or, to Seller’s actual knowledge, threatened against Seller, nor are any of such
proceedings contemplated by Seller.

6

 

     8.8. Neither Seller nor any of its agents has received any written notice from any insurance
company of any defects or inadequacies in the Improvements which might adversely affect the
insurability of the Improvements. Seller shall promptly comply with any written notice received
after the date of this Agreement and promptly deliver copies of any such notices to Purchaser.

     8.9. Seller has not received any written notice alleging that it is in default under any of
the documents, recorded or unrecorded, referred to in the Title Commitment, nor has Seller received
any notice alleging that Seller has failed to timely perform all of the obligations required to be
performed by it, nor alleging that Seller is otherwise in default under any contracts relating to
the management, leasing, operation, maintenance or repair of the Property.

     8.10. Seller shall maintain or cause the Property to be maintained in its current condition
and repair, normal wear and tear excepted, and shall cause the Property to be operated in the
normal course of business and in compliance with the terms of this Agreement until the Closing
Date. After the Closing Date, Seller shall maintain or cause the Improvements to be maintained in
their current condition and repair, normal wear and tear excepted, until the date Seller terminates
the Lease and surrenders possession of the Milwaukee Parcel to Purchaser.

     8.11. The Lease and all of the records, agreements, licenses, permits, operating statements
and other documents and materials required to be delivered to Purchaser pursuant to paragraph 10
below shall be true, correct and complete and in such form as required under said paragraph 10.

     8.12. Seller has received no written notice stating that access to the Property from any
adjoining public streets would be terminated, or which stated that there would be a discontinuation
of adequate sewer, water, gas, electric, telephone or other utility services.

     8.13. Seller has received no written notice stating that, (i) the Property and the Personalty,
including but not limited to the exterior walls and structural components of the Improvements, and
the heating, air conditioning, plumbing, ventilating, utility, sprinkler and other mechanical and
electrical systems, apparatus and appliances located on or about the Improvements are affected by
material defects and are not in operating condition; (ii) the Improvements are not free from
infestation by termites or other pests, insects or animals; and (iii) the roof is not free from
leakage or other impairments.

     8.14. Seller has received no written notice of any threatened any special taxes or assessments
with respect to the Property other than general real estate taxes not yet due and payable. Seller
has no knowledge of and neither Seller nor any of its agents has received any notice of any
proposed increase in the assessed valuation of the Property for real estate tax purposes.

7

 

     8.15. Seller has no obligations or responsibilities whatsoever for any period of time prior to
the Closing Date to any persons or entities involved in the operation, maintenance and management
of the Property which have not been satisfied, and Seller shall defend, indemnify and hold
Purchaser harmless from and against any and all such obligations to such persons which arose before
the Closing Date. Furthermore, there are no unfunded vested benefits or any withdrawal liability as
determined under the applicable sections of the Employee Retirement Security Act of 1974, as
amended, or the Internal Revenue Code of 1986, as amended, attributable to Seller for which
Purchaser may have any responsibility as a result of the transaction contemplated by this
Agreement.

     8.16. Seller has the full power to execute, deliver and carry out the terms and provisions of
this Agreement and all other agreements, instruments and documents herein required to be made or
delivered by Seller pursuant hereto. Seller has taken all necessary action to authorize the
execution, delivery and performance of this Agreement and such other agreements, instruments and
documents, to enter into this Agreement and to consummate the sale and make the transfer and
assignments contemplated by this Agreement. The sale, conveyance or assignment of the Property
contemplated under this Agreement does not require the consent of any party which has not been
obtained by Seller. The individuals executing this Agreement and all other agreements, instruments
and documents herein required to be made or delivered by Seller on behalf of Seller are and shall
be duly authorized to sign the same on Seller’s behalf and to bind Seller thereto.

     8.17. The execution and delivery of this Agreement, and the consummation of the transactions
contemplated by this Agreement, are not prohibited by and will not conflict with, constitute
grounds for termination of, or result in the breach of any contracts, agreements or instruments to
which Seller is now a party or by which Seller is bound, nor any order, rule or regulation of any
court or other governmental agency or official.

     8.18. To Seller’s knowledge, except as provided in that certain Phase I
Environmental Site Assessement dated July 26, 2002 prepared by Laicon, Inc. pertaining to the
Property, Seller has not received any written notification from any governmental authority that (i)
all or any portion of the Property and/or the Improvements violates any federal, state and/or local
environmental laws rules, statutes, directives, binding written interpretations, binding written
policies, ordinances and regulations issued by any governmental authority and in effect as of
the date of this Agreement applicable to the Property (“Environmental Laws”); or (ii) any
“Hazardous Substances” (as defined under any Environmental Laws) have been stored or generated at,
released or discharged from or are present upon the Property and/or the Improvements, except in the
ordinary course of business and in accordance with all Environmental Laws. To Seller’s knowledge,
no Hazardous Substances are now located on the Property and neither Seller nor, to Seller’s
knowledge, any other person has ever caused or permitted any Hazardous Substances to be placed,
held, located or disposed of on, under or at the Property or any part of the Property in violation
of any Environmental Laws.

8

 

          If, after the date of this Agreement and prior to the Closing Date, Seller should gain such
knowledge or such facts should occur which would constitute a breach by Seller of any of the
representations, warranties and/or covenants contained in this paragraph 8, Seller shall so notify
Purchaser prior to the Closing Date and either (i) Purchaser may waive such breach, or (ii) if in
Purchaser’s good faith determination Purchaser’s intended use and/or development of the Property
would be materially adversely affected or Purchaser would incur a material economic loss or damage,
then Purchaser may elect to terminate this Agreement by delivering written notice thereof to Seller
and promptly receive a return of the Earnest Money and all interest accrued thereon.

          Seller shall defend, indemnify and hold Purchaser, its members, managers, agents and
employees harmless from and against any and all damage resulting from the breach of any of the
representations, warranties and/or covenants contained in this Agreement. In the event of any
alleged breach of any such representations, warranties or covenants, Purchaser shall deliver
written notice of such breach to Seller, and Seller shall have ten (10) days to cure such breach
or deny to Purchaser in writing the existence of such breach. Purchaser shall be entitled to
offset the amount of any damage suffered as a result of such breach which has not been contested
by Seller as set forth above or which has been adjudicated by a court of competent jurisdiction
against any amounts otherwise due from Purchaser to Seller, whether due under the terms of
paragraph 3 above or under any other agreement between Seller and Purchaser.

          9. REPRESENTATIONS, WARRANTIES AND COVENANTS OF PURCHASER. Purchaser represents and
warrants to Seller that as of the date of this Agreement, and Purchaser covenants to Seller that
as of the Closing Date:

     9.1. Purchaser is a limited liability company duly organized, validly existing and in
good standing under the laws of the State of Illinois. Purchaser has the full power to
execute, deliver and carry out the terms and provisions of this Agreement and all other
agreements, instruments and documents herein required to be made or delivered by Purchaser
pursuant hereto. Purchaser has taken all necessary action to authorize the execution,
delivery and performance of this Agreement and such other agreements, instruments and
documents to enter into this Agreement and to consummate the sale and make the transfer and
assignments contemplated by this Agreement. The sale, conveyance or assignment of the
Property contemplated under this Agreement does not require the consent of any party which
has not been obtained by Purchaser. The individuals executing this Agreement and all other
agreements, instruments and documents herein required to be made or delivered by Purchaser
pursuant hereto on behalf of Purchaser are and shall be duly authorized to sign the same on
Purchaser’s behalf and to bind Purchaser thereto.

     9.2. The execution and delivery of this Agreement, and the consummation of the
transactions contemplated by this Agreement, are not prohibited by and will not conflict
with, constitute grounds for termination of, or result in the breach of any contracts,
agreements or instruments to which Purchaser is now a party or by which it is bound, nor any
order, rule or regulation of any court or other governmental agency or official.

9

 

          10. DELIVERY OF DOCUMENTS. Within two (2) days after the date of this Agreement,
Seller shall cause to be furnished or made available to Purchaser, to the extent not previously
delivered or made available to Purchaser, the following documents with respect to the Property to
the extent in Seller’s possession or reasonably available to Seller, together with all other
information in Seller’s possession or reasonably available to Seller concerning the Property which
Purchaser, its attorneys or agents may reasonably request:

     10.1. Copies of all title insurance reports Seller has available as of the date of this
Agreement, and after this Agreement is executed, the updated Title Commitment in accordance
with the terms of paragraph 4 above;

     10.2. A copy of an existing survey of the Property showing the boundaries and location
of all existing improvements of the Property as well as all easements, flood plains, and
wetlands, if any, and after this Agreement is executed, the updated Survey in accordance
with the terms of paragraph 5 above;

     10.3. Copies of any building and use restrictions or declarations of easements,
covenants and restrictions applicable to any portion of the Property;

     10.4. Copies of “as built” plans and specifications for the Improvements locating all
utilities, roads, buildings, structures, parking areas and other improvements located on the
Property, and any existing topographical or engineering drawings of the Property;

     10.5. Copies of any and all public or private utility easements, access agreements,
special assessment arrangements, tap-in or connection fee agreements or procedures relating
to the Property;

     10.6. Copies of any soil or boring reports, environmental studies, hydrological
studies, engineering studies, percolation tests or data, septic permits and any other
permits issues by the State Department of Natural Resources or other governmental authority
in connection with the development of the Property;

     10.7. Copies of the most recent bills for current real estate or personal property
taxes, water, charges and other utilities, together with proof of payment (if any of the
same have been paid);

     10.8. A copy of the most recent phase I environmental study on the Property, if
available;

     10.9. A copy of the most recent property physical condition report, if any;

     10.10. Copies of all licenses, permits, authorizations and approvals required by law
and issued by all governmental authorities having jurisdiction over the Property;

10

 

     10.11. Operating statements for the Property for the prior three (3) full calendar
years;

     10.12. Copies of all existing insurance policies in force and effect covering all or
any part of the Property, together with (i) copies of all insurance claims and settlements,
and (ii) summaries from all insurers of loss histories and claims paid relating to the
Property during the coverage periods;

     10.13. Copies of petitions for appeal of property taxes and/or assessments for the
Property which have been contested over the immediately preceding two (2) year period and
the results thereof; and

     10.14. Copies of all existing service and maintenance contracts and other written
agreements pertaining to the Property in which Seller or its agents and affiliates have
entered into in connection with the construction, development, maintenance and ownership of
the Property.

          11. CONTINGENCIES AND CONDITONS PRECEDENT. This Agreement and Purchaser’s obligation
to close hereunder are subject to and conditioned upon (i) the continued validity of each and every
representation, warranty and covenant contained in this Agreement; and (ii) the delivery of the
closing documents described in paragraph 12 below. Notwithstanding anything to the contrary
contained in this Agreement, any of the contingencies and conditions precedent may be waived in
writing by Purchaser, such contingencies and conditions being intended for the exclusive protection
and benefit of Purchaser. In the event any of such contingencies and/or conditions precedent are
not satisfied or waived by Purchaser and would, in Purchaser’s good faith determination, cause
Purchaser’s intended use and/or development of the Property to be materially adversely affected or
would cause Purchaser to incur a material economic loss or damage, then at the option of Purchaser
this Agreement may be declared null and void and the Earnest Money with all interest accrued
thereon shall be promptly returned to Purchaser, or the Closing Date may be extended by Purchaser
until such contingencies and/or conditions precedent are satisfied.

          12. CLOSING DOCUMENTS. On or before the Closing Date, Seller shall deliver the
following documents and materials to Purchaser or to the Title Insurer, as applicable:

     12.1. Special Warranty Deed executed by Seller in recordable form conveying the
Property to Purchaser, subject only to the Permitted Encumbrances.

     12.2. Bill of Sale conveying the Personalty to Purchaser.

     12.3. General Assignment transferring the Intangible Property to Purchaser.

     12.4. A fully executed original of the Lease.

11

 

          12.5. Copies of all architect’s, engineering and building plans, tests, reports, drawings and
specifications for the Property, if any, which are in the possession of Seller or Seller’s agents.

          12.6. ALTA Statement or Owner’s Affidavit, as applicable.

          12.7. GAP Undertaking.

          12.8. Non-Foreign Person (FIRPTA) Affidavit in form satisfactory to Purchaser and the Title
Insurer.

          12.9. Completed State of Illinois, Cook County and City of Chicago Transfer Tax Declarations
to the extent applicable.

          12.10. An affidavit executed by Seller certifying that the sale of the Property to Purchaser
hereunder is not subject to and does not subject Purchaser to liability under Section 902(d) of the
Illinois Income Tax Act or Section 5(j) of the Retailer’s Occupation Tax Act.

          12.11. An affidavit executed by Seller certifying that the sale of the Property to Purchaser
hereunder is not subject to and does not subject Purchaser to liability under the City of Chicago
Bulk Sales Disclosure required under section 3-4-140 of the Municipal Code of Chicago.

          12.12. The Title Insurance Policy in accordance with the terms of paragraph 4 above.

          12.13. The Survey in accordance with the terms of paragraph 5 above.

          12.14. Closing Statement.

          12.15. Deed and Money Escrow Instructions.

          12.16. Keys to all locks located in the Improvements.

          12.17. Such other documents as the Title Insurer, Purchaser or its attorneys may reasonably
require in order to effectuate or further evidence the intent of any provision of this Agreement.

          12.18. On the Closing Date, Purchaser shall deliver the following to Seller or the Title
Insurer, as applicable:

          12.19. ALTA Statement if applicable.

          12.20. GAP Undertaking.

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          12.21. Counterpart to Closing Statement.

          12.22. Counterpart to Deed and Money Escrow Instruction.

          12.23. Cash due on the Closing Date.

          12.24. Such other documents as the Title Insurer, Seller or its attorneys may
reasonably request in order to effectuate or further evidence the intent of any provision of
this Agreement.

          13. ASSIGNMENT. Purchaser may assign its interest under this Agreement to a
partnership, limited liability company or any other entity to be formed so long as Purchaser
remains liable for all of Purchaser’s obligations under this Agreement.

          14. CLOSING DATE. So long as all of the conditions precedent and other obligations
of this Agreement have been satisfied by Seller or waived in writing by Purchaser, the closing
shall occur on March 31, 2008 (the “Closing Date”), or on such other date mutually agreed to in
writing by Seller and Purchaser, through a deed and money escrow with the Title Insurer at the
Chicago Loop office of the Title Insurer.

          15. CASUALTY LOSS OR EMINENT DOMAIN. Seller agrees to immediately notify Purchaser
of any fire, other casualty or any notice of eminent domain proceeding affecting the Property. If
prior to the Closing Date all or any portion of the Property is destroyed by fire or other casualty
or is taken or made subject to eminent domain proceedings, then Seller shall immediately so notify
Purchaser. Upon such occurrence, Purchaser shall, at its option, have the right to:

          15.1. Terminate this Agreement and receive a refund of the Earnest Money and any other
moneys paid to the Title Insurer as escrowee and/or to Seller; or

          15.2. Complete the transaction, in which event Seller shall:

                                   15.2.1. Deliver to Purchaser an executed assignment of all insurance proceeds or condemnation
awards payable as a result of such fire, casualty or condemnation in form and substance
satisfactory to Purchaser; and

                                   15.2.2. Pay the amount of any deductible under such policy, if applicable.

          16. BROKERS. Seller and Purchaser agree to indemnify, defend and hold each other
harmless from and against any and all claims or demands with respect to any finder’s or brokerage
fees, commissions or other compensation asserted by any person, firm or corporation in connection
with this Agreement or the transaction contemplated by this Agreement arising from or as a result
of the actions of Seller or Purchaser, which indemnity shall survive the Closing Date. However,
Seller acknowledges that at Purchaser’s option a consulting fee will be

13

 

paid to an affiliate of Purchaser at closing, and Purchaser will be responsible for the payment of
said consulting fee.

          17. POSSESSION. Possession of the Property shall be delivered to Purchaser on the
Closing Date, subject to the rights of Seller as tenant under the Lease on the Milwaukee Parcel.

          18. ESCROW. On or before the Closing Date, the parties shall establish an escrow with
the Title Insurer in accordance with the usual form of deed and money escrow agreement then in use
by the Title Insurer, with such special provisions inserted in the escrow agreement as may be
required to conform with this Agreement. At the election of Purchaser, notwithstanding anything to
the contrary contained in this Agreement, payment of the Purchase Price and delivery of all
documents shall be made through such escrow. The cost of such escrow shall be divided equally
between Seller and Purchaser. This Agreement shall not be merged into any escrow agreement and
the escrow agreement shall be deemed auxiliary to this Agreement. The provisions of this
Agreement shall always be deemed controlling as between Seller and Purchaser.

          19. DEFAULT.

          19.1. In the event of a default by Seller under this Agreement which remains uncured for
five (5) days after written notice from Purchaser, Purchaser may, at its option, elect to
enforce the terms of this Agreement by an action for specific performance or terminate this
Agreement, in which event the Earnest Money and all interest accrued thereon shall be
promptly returned to Purchaser.

          19.2. In the event of a default by Purchaser which remains uncured for five (5) days
after written notice from Seller and a subsequent termination of this Agreement without the
fault of Seller, the Earnest Money and all interest accrued thereon shall be paid to Seller
as liquidated damages and as Seller’s sole and exclusive remedy.

          20. INSPECTION CONTINGENCY.

          20.1. Purchaser shall have until 5:00 p.m. C.S.T. on March 13, 2008 (the “Inspection
Period”) for Purchaser, its employees, third party consultants, lenders, engineers,
accountants and attorneys (collectively “Purchaser’s Representatives”) to conduct an
inspection of the Property, including the right to (i) enter upon the Property and
Improvements, at reasonable times, to perform inspections and tests of the Property; (ii)
make investigations with regard to soil tests and the environmental condition of the Property
and the compliance by the Property with all applicable laws, ordinances, rules and
regulations; (iii) review all title and survey matters and all books, records, contracts and
other information relating to the Property and its operation; (iv) conduct traffic,
engineering, mechanical, sewer, zoning, economic and feasibility studies with respect to the
development of the Property; (v) approve any impact or other fees imposed by Cook County, the
City of Chicago or any other governmental or municipal entity having jurisdiction over the
Property; (vi) verify that all utilities are at or are stubbed to the Property and there are
no

14

 

recapture fees; and (vii) verify that Purchaser can obtain all necessary rezoning, special
use permits, variances, final plats of subdivision or resubdivision, and all building,
utility, construction and
engineering permits, licenses and easements required in connection with Purchaser’s intended
development of the Property. If Purchaser determines that the results of any inspection,
test, examination or review conducted by any of Purchaser’s Representatives are unacceptable
to Purchaser for any reason in Purchaser’s sole discretion, then Purchaser may terminate this
Agreement by delivering written notice thereof to Seller (the “Termination Notice”) prior to
the expiration of the Inspection Period, whereupon the Earnest Money and all interest accrued
thereon shall be promptly returned to Purchaser and neither party shall have any further
liabilities or obligations hereunder, except for those liabilities and obligations that
expressly survive the termination of this Agreement. If Purchaser fails to deliver a
Termination Notice to Seller prior to the expiration of the Inspection Period, then Purchaser
will be deemed to have waived its right to terminate this Agreement pursuant to this
paragraph 20.

          20.2. Purchaser shall, at Purchaser’s sole cost, repair any damage to the Property
directly caused by its inspection of the Property, and, to the extent Purchaser or
Purchaser’s Representatives alter, modify, disturb or change the condition of the Property as
part of the inspection, Purchaser shall, at Purchaser’s sole cost, restore the Property as
closely as possible to the condition in which the Property was found before such alteration,
modification, disturbance or change. Purchaser hereby agrees to defend, indemnify and hold
Seller harmless from and against any and all claims, liabilities, losses, damages, costs and
expenses (including reasonable attorneys’ fees and court costs) that Seller suffers or incurs
as a result of or in connection with Purchaser’s inspection of the Property or Purchaser’s or
Purchaser’s Representatives’ entry upon the Property, unless caused by or resulting from the
negligence or misconduct of Seller.

          20.3. If, in the course of its due diligence investigations, Purchaser acquires actual
knowledge of any information that makes any of Seller’s representations and warranties set
forth in paragraph 8 above to be untrue, and if Purchaser nevertheless elects to close, then
those representations and warranties of Seller which Purchaser discovered to be untrue
hereunder shall be deemed modified so that Seller represents and warrants to such state of
affairs as actually exists and of which Purchaser is actually aware. If Purchaser discloses
in writing any such information to Seller during the Inspection Period, then Seller will be
entitled to deliver to Purchaser on the Closing Date a closing certificate reaffirming the
representations and warranties which shall include the disclosure of such information.
However, nothing contained herein shall absolve Seller from responsibility or liability as
provided in this Agreement for any of Seller’s representations and warranties which are
untrue and which are not discovered to be untrue by Purchaser during the Inspection Period.

          21. LITIGATION. In the event of litigation between the parties with respect to the
Property, this Agreement, the performance of their respective obligations hereunder or the effect
of a termination under this Agreement, the non-prevailing party shall pay all costs and expenses
incurred by the prevailing party in connection with such litigation, including but not limited to
reasonable attorneys’ fees of counsel selected by the prevailing party. Notwithstanding any

15

 

provision of this Agreement to the contrary, the obligations of the parties under this paragraph
21 shall survive the termination of this Agreement or the Closing and the delivery of any
conveyance documentation.

          22. NOTICES. All notices required or desired to be given under this Agreement shall be
in writing and shall be deemed properly delivered and received (i) when and if personally
delivered; (ii) one (1) business day after deposit with Federal Express or any other comparable
commercial overnight courier; or (iii) the same day when sent by confirmed facsimile before 5:00
p.m. C.S.T. Notices may be delivered on behalf of the parties by and to their respective attorneys.
Notices shall be addressed as follows:

	 	 	 	 	 	 	 
	 

	 	A.
	 	If to Purchaser:
	 	PGG, LLC
	 

	 	 	 	 	 	c/o CG Development Group, LLC
	 

	 	 	 	 	 	1753 North Damen Avenue
	 

	 	 	 	 	 	Suite 200
	 

	 	 	 	 	 	Chicago, Illinois 60647
	 

	 	 	 	 	 	Attention: Mr. Jon Goldman
	 

	 	 	 	 	 	Facsimile: 773 269-2141
	 
	 	 	 	 	 	 
	 

	 	 	 	with a copy to:
	 	Much Shelist
	 

	 	 	 	 	 	191 North Wacker Drive
	 

	 	 	 	 	 	Suite 1800
	 

	 	 	 	 	 	Chicago, Illinois 60606
	 

	 	 	 	 	 	Attention: Steven L. DeGraff, Esq.
	 

	 	 	 	 	 	Facsimile: 312-521-2583
	 
	 	 	 	 	 	 
	 

	 	B.
	 	If to Seller:
	 	Midwest Bank and Trust Company
	 

	 	 	 	 	 	501 West North Avenue
	 

	 	 	 	 	 	Melrose Park, Illinois 60160
	 

	 	 	 	 	 	Attention: Mr. Bruno P. Costa
	 

	 	 	 	 	 	Facsimile: ______
	 
	 	 	 	 	 	 
	 

	 	 	 	with a copy to:
	 	Hinshaw & Culbertson LLP
	 

	 	 	 	 	 	222 North LaSalle Street
	 

	 	 	 	 	 	Suite 300
	 

	 	 	 	 	 	Chicago, Illinois 60601
	 

	 	 	 	 	 	Attention: Stephen H. Malato, Esq.
	 

	 	 	 	 	 	Facsimile: 312-704-3001

          or to such other address as either party may from time to time designate by written notice to
the other party.

          23. CONFIDENTIALITY. Purchaser and Seller agree to maintain in confidence the
information and terms contained in the “Evaluation Materials” (as defined below) and in this
Agreement (collectively the “Transaction Information”). Neither Seller nor Purchaser shall

16

 

disclose all or any portion of the Transaction Information to any third party and each party shall
maintain the Transaction Information in confidence; provided, however, either Seller or Purchaser
may disclose the Transaction Information (i) to any of Purchaser’s Representatives to the extent
that Purchaser’s Representatives reasonably need to know about such Transaction Information in
order to assist and perform services on behalf of Purchaser; (ii) to the extent required by any
applicable statute, law, regulation, governmental authority or court order; and (iii) in connection
with any litigation or proceeding that may
arise between the parties in connection with the transaction contemplated under this Agreement. For
purposes of this Agreement, the term “Evaluation Materials” shall mean any documents and other
materials or information delivered or made available by Seller or its agents to Purchaser or
Purchaser’s Representatives together with the results of any studies, analysis or investigation of
the Property undertaken by or on behalf of Purchaser. Purchaser agrees that the Evaluation
Materials shall be used solely for purposes of evaluating the acquisition and potential ownership
and operation of the Property.

          24. SURVIVAL OF AGREEMENT. The representations, warranties and covenants
made in this Agreement by Seller shall be continuing, and shall be deemed remade by Seller as of
the Closing Date with the same force and effect as if in fact specifically remade at that time.
All representations, warranties and covenants made in this Agreement shall survive the Closing Date
for a period equal to the later of (i) twelve (12) months after the Closing Date, or (ii) the date
Seller vacates and surrenders possession of the Milwaukee Parcel to Purchaser, and shall not merge
into any instrument of conveyance delivered at the closing. Except as otherwise provided herein,
the effect of the representations, warranties and covenants made in this Agreement shall not be
diminished, abrogated or deemed to be waived by any inspections or investigations made by
Purchaser.

          25. RECORDINGS PROHIBITED. Seller shall not record this Agreement not a
memorandum there of with the Cook County Recorder except in the event of a default by Seller
hereunder.

          26. SUCCESSORS AND ASSIGNS. This Agreement shall inure to the benefit of and be
binding upon the parties and their respective heirs, successors and assigns.

          27. COUNTERPARTS. This Agreement may be executed in any number of counterparts;
each such counterpart shall be deemed to be an original document, but all such counterparts
together shall constitute but one (1) Agreement. A fully executed facsimile copy of this Agreement
shall be effective as an original.

          28. PROVISIONS SEVERABLE. The provisions hereof shall be deemed
independent and severable, and the unenforceability, invalidity or partial invalidity of any one
(1) provision shall not affect the validity of enforceability of any other provision hereof.

          29. CONSTRUCTION OF AGREEMENT. In construing this Agreement, all headings and
titles are for the convenience of the parties only and shall not be considered a part of this
Agreement. Whenever required by the context, the singular shall include the plural and

17

 

the masculine shall include the feminine and vice versa. This Agreement shall not be construed as
if prepared by one of the parties, but rather according to its fair meaning as a whole, as if both
parties had prepared it. All Exhibits attached hereto are incorporated in this Agreement by
reference thereto.

          30. APPLICABLE LAW. This Agreement shall be governed by and construed in accordance
with the laws of the State of Illinois.

          31. ENTIRE AGREEMENT. This Agreement embodies and constitutes the entire agreement and
understanding between the parties with respect to the transaction contemplated hereunder, and all
prior or contemporaneous agreements, understandings, representations and warranties are deemed
merged into this Agreement. Neither this Agreement nor any provisions hereof may be waived,
modified, amended, discharged or terminated except by an instrument in writing signed by the party
against which the enforcement of such waiver, modification, amendment, discharge or termination is sought, and
then only to the extent set forth in such instrument.

          32. TIME OF THE ESSENCE. Time is of the essence of this Agreement. If any date herein
set forth for the performance of any obligations by Seller or Purchaser or for the delivery of any
instrument or notice as herein provided should be on a Saturday, Sunday or legal holiday, the
compliance with such obligations or delivery shall be deemed acceptable on the next business day
following such Saturday, Sunday or legal holiday. As used herein, the term “legal holiday” means
any state or federal holiday for which financial institutions or post offices are generally closed
in the State of Illinois for observance thereof.

THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFTBLANK. SIGNATURES FOLLOW ON THE NEXT PAGE

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	PURCHASER:	 	 	 	SELLER:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	PGG, LLC, an Illinois	 	 	 	MIDWEST BANK AND TRUST COMPANY,	 	 
	limited liability company	 	 	 	an Illinois banking corporation	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Jon Goldman
 

	 	 	 	By:
	 	/s/ Bruno P. Costa
 

	 	 
	Its:

	 	Managing Member
	 	 	 	Its:
	 	Executive Vice President	 	 
	 

	 	 

	 	 	 	 	 	 

	 	 

19

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