Document:

Exhibit
10.3

TAX RECEIVABLE AGREEMENT

This TAX RECEIVABLE AGREEMENT (this “Agreement”)
is dated as of May 3, 2007, by and between Interactive Brokers Group, Inc., a
Delaware company (“IBGI”), and IBG Holdings LLC, a Delaware limited liability
company (“IBG Holdings”).

RECITALS:

WHEREAS, IBGI, IBG Holdings, IBG LLC, a Connecticut
limited liability company with status as a partnership for U.S. federal income
tax purposes (“IBG LLC”), and the members of IBG LLC entered into a
certain Exchange Agreement as of May 3, 2007 (the “Exchange Agreement”);
and

WHEREAS, in connection with transactions contemplated
by the Exchange Agreement, the members of IBG LLC  contributed
their interests in IBG LLC to IBG Holdings in exchange for membership interests
in IBG Holdings and became  members of IBG
Holdings after giving effect to the transactions contemplated by the Exchange
Agreement (such contributors, the “Members”);

WHEREAS, pursuant to the Exchange Agreement, certain
interests in IBG LLC will be sold by IBG Holdings to IBGI (the “Original
Sale”) in exchange for cash and the right to certain payments equal to a
portion of any tax benefits realized by IBGI as the result of the sale; and

WHEREAS, certain series of membership interests in IBG
Holdings may be tendered over time by the Members for redemption by IBG
Holdings pursuant to the Exchange Agreement, and, as necessary to obtain the
consideration necessary to give effect to such rights of redemption, IBG
Holdings has the right to sell to IBGI a corresponding number of IBG LLC
interests in exchange for cash and a portion of any tax benefits realized by
IBGI as the result of such sale and exchange (an “Exchange”); and

WHEREAS, any tax benefits from the Original Sale or
from an Exchange will result from IBG LLC’s having in effect an election under
Section 754 of the Code (as defined herein) for the Taxable Year (as defined
herein) in which the Original Sale or the Exchange, as applicable, occurs,
which election will result in an adjustment to IBGI’s share of the tax basis of
the assets owned by IBG LLC as of the date of the Original Sale or the
Exchange, with a consequent result on the taxable income subsequently derived
therefrom; and

WHEREAS, immediately following the Original Sale, IBGI
will become the managing member of IBG LLC and exercise control of IBG LLC,
including of its business and affairs; and

WHEREAS, the parties to this Agreement desire to
provide for certain payments and make certain arrangements with respect to any
tax benefits to be derived by IBGI as the result of the Original Sale and
Exchanges as contemplated by the Exchange Agreement.

 

NOW, THEREFORE, in consideration of the foregoing and
the respective covenants and agreements set forth herein, and intending to be
legally bound hereby, the parties hereto agree as follows:

ARTICLE I

Definitions

As used in this Agreement, the terms set forth in this
Article I shall have the following meanings (such meanings to be equally
applicable to both the singular and plural forms of the terms defined).

“Advisory Firm” means an accounting or law firm
that is nationally recognized as being expert in Covered Tax matters, as
determined by the Audit Committee.  The
Audit Committee shall select the Advisory Firm.

“Advisory Firm Letter” shall mean a letter from
the Advisory Firm stating that the relevant schedule, notice or other
information to be provided by IBGI to IBG Holdings and all supporting schedules
and work papers were prepared in a manner consistent with the terms of this
Agreement and, to the extent not expressly provided in this Agreement, on a
reasonable basis in light of the facts and law in existence on the date such
schedule, notice or other information is delivered to IBG Holdings.

“Agreed Rate” means LIBOR plus 200 basis
points.

“Agreement” is defined in the preamble.

“Amended Tax Benefit Schedule” is defined in
Section 2.05(b) of this Agreement.

“Assumed Tax Liability means the actual
liability for Covered Taxes of IBGI; provided that in computing the
Assumed Tax Liability of IBGI for any Covered Taxable Year, the deductions for
interest expense shall not exceed the amount of such deductions to which IBGI
would be entitled if the amount and terms of indebtedness of IBGI during such
Covered Taxable Year were the same as the indebtedness of IBGI in place on the Original
Sale Date.

“Audit Committee” means the audit committee of
the board of directors of IBGI.

“Basis Adjustment” means the increase or
decrease to the tax basis of, or IBGI’s share of the tax basis of, IBG LLC’s
assets (i) under Sections 734(b), 743(b) and 754 of the Code and the comparable
sections of U.S. state and local income and franchise tax law as a result of
the Original Sale, (ii) under Section 743(b) and 754 of the Code and the
comparable sections of U.S. state and local income and franchise tax law as a
result of any Exchange and (iii) under Sections 743(b) and 754 as a result of
any payments under this Agreement.

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“Business Day” means any calendar day that is
not a Saturday, Sunday or other calendar day on which banks are required or
authorized to be closed in the City of New York.

“Change Notice” means a 30-day letter, a final
audit report, a statutory notice of deficiency or similar written notice with
respect to Covered Taxes from any Taxing Authority with respect to the
treatment of the Original Sale or any Exchange.

“Code” means the Internal Revenue Code of 1986,
as amended  (or any successor U.S.
federal income tax statute and the corresponding provisions thereof).

“Covered Taxable Year” means any Taxable Year
of IBGI ending after the Original Sale Date and on or before the Scheduled
Termination Date or Early Termination Date, as applicable.

“Covered Taxes” means any tax imposed under
Subtitle A of the Code or any other provision of U.S. federal income tax law
(including, without limitation, the taxes imposed by Sections 11, 55, 59A, and
1201(a) of the Code) and U.S. state and local income and franchise taxes.

“Determination” shall have the meaning ascribed
to such term in Section 1313(a) of the Code or similar provision of state or
local income or franchise tax law, as applicable.

“Early Termination Date” is the last day of the
Taxable Year in which an Early Termination Notice is given.

“Early Termination Notice” is defined in
Section 4.02 of this Agreement.

“Early Termination Payment” shall mean, as of
the date of an Early Termination Notice, a payment equal to the present value,
discounted at the Termination Rate, of all Tax Benefit Payments that would be
required to be paid by IBGI to IBG Holdings during the period from the date of
the Early Termination Notice through the Scheduled Termination Date assuming
the Valuation Assumptions are applied.

“Exchange” is defined in the recitals.

“Exchange Agreement” is defined in the
recitals.

“Exchange Assets” means the assets owned by IBG
LLC as of an applicable Exchange Date (and any asset whose tax basis is
determined, in whole or in part, by reference to the adjusted basis of any such
asset).

“Exchange Basis Schedule” is defined in Section
2.04(a) of this Agreement.

“Exchange Date” means the date on which an
Exchange is effected.

“Final Adjustment” is defined in Section
3.03(b).

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“Governmental Entity” means any U.S. federal,
state or local government or any court of competent jurisdiction,
administrative agency or commission or other domestic governmental authority or
instrumentality.

“Hypothetical Tax Basis” means, with respect to
any asset at any time, the tax basis that such asset would have at such time if
no Basis Adjustment had been made as a result of the Original Sale or an
applicable Exchange, as the case may be.

“Hypothetical Tax Liability” means, with
respect to any Covered Taxable Year, the liability for Covered Taxes of IBGI
using the same methods, elections, conventions and similar practices used on
the actual Tax Returns of IBGI, but using the Hypothetical Tax Basis instead of
the actual tax basis of each relevant asset and excluding any deduction
attributable to the Imputed Interest.

“IBG Holdings” is defined in the preamble.

“IBG Holdings Operating Agreement” means the
Operating Agreement of IBG Holdings dated as of May 3, 2007.

“IBGI” is defined in the preamble.

“Imputed Interest” and “Imputed Principal”
shall mean the portion of a payment treated as interest or principal, as
applicable, under Section 1272, 1274 or 483 or other provision of the Code and
the similar section of the applicable U.S. state or local income or franchise
tax law with respect to IBGI’s payment obligations to IBG Holdings under this
Agreement.

“IRS” means the
U.S. Internal Revenue Service.

“LIBOR” means, for each month (or portion
thereof) during any period, an interest rate per annum equal to the rate per
annum reported, on the date two days prior to the first day of such month, on
the Telerate Page 3750 (or if such screen shall cease to be publicly available,
as reported on Reuters Screen page “LIBO” or by any other publicly available
source of such market rate) for London interbank offered rates for U.S. dollar
deposits for such month (or portion thereof).

“Members” is defined in the recitals.

“Original Assets” means the assets owned by IBG
LLC as of the date of the Original Sale and any asset whose tax basis is
determined, in whole or in part, by reference to the adjusted basis of any such
asset.

“Original Sale” is defined in the recitals.

“Original Sale Basis Schedule” is defined in
Section 2.02 of this Agreement.

“Original Sale Date” means the date on which
the Original Sale is effected.

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“Person” means and includes any individual,
firm, corporation, partnership (including, without limitation, any limited,
general or limited liability partnership), company, limited liability company,
trust, joint venture, association, joint stock company, unincorporated
organization or similar entity or Governmental Entity.

“Potential Reduction” is defined in Section
3.03(a) of this Agreement.

“Preliminary Termination Notice” is defined in
Section 4.02(b).

“Proceeding” a suit, action or proceeding
relating to this Agreement.

“Realized Tax Benefit” means, for a Covered
Taxable Year, the excess, if any, of the Hypothetical Tax Liability over the
Assumed Tax Liability for such Covered Taxable Year, less the fees, charges and
expenses of the Advisory Firm and the expert described in Section 7.09 related
to this Agreement paid by IBGI in the relevant Covered Taxable Year.  If all or a portion of the Assumed Tax
Liability for Covered Taxes for the Covered Taxable Year arises as a result of
an audit by a Taxing Authority of any Covered Taxable Year, such adjustment to
the liability shall not be included in determining the Realized Tax Benefit or
the Realized Tax Detriment unless and until there has been a Determination.

“Realized Tax Detriment” means, for a Covered
Taxable Year, the excess, if any, of the Assumed Tax Liability of IBGI over the
Hypothetical Tax Liability for such Covered Taxable Year, plus the fees,
charges and expenses of the Advisory Firm and the expert described in Section
7.09 related to this Agreement paid by IBGI in the relevant Covered Taxable
Year.  If all or a portion of the Assumed
Tax Liability arises as a result of an audit by a Taxing Authority of any
Covered Taxable Year, such adjustment to the liability shall not be included in
determining the Realized Tax Benefit or Realized Tax Detriment unless and until
there has been a Determination.

“Reconciliation Procedures” shall mean those
procedures set forth in Section 7.02 of this Agreement.

“Scheduled Termination Date” shall mean the
date on which this Agreement would terminate in the absence of an Early
Termination Notice as provided in Section 4.01.

“Senior Obligations” means principal, interest
or other amounts due and payable in respect of any debt of IBGI for borrowed
funds.

“Tax Benefit Payment” is defined in Section
3.01(b) of this Agreement.

“Tax Benefit Schedule” is defined in Section
2.05(a) of this Agreement.

“Taxable Year” means a taxable year as defined
in Section 441(b) of the Code or comparable section of U.S. state or local
income or franchise tax law, as applicable (and, 

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therefore, for the avoidance of doubt, may include a
period of less than 12 months for which a Tax Return is made).

“Tax Return” means any return or filing
required to be made with respect to Covered Taxes, including amended returns,
for any Taxable Year with any Taxing Authority.

“Taxing Authority” means the IRS and any state
or local Governmental Entity responsible for the administration of Covered
Taxes.

“Termination Rate” means the Applicable
Treasury Rate plus 300 basis points, where the “Applicable Treasury Rate”
means a rate equal to the yield to maturity as of the date an Early Termination
Notice is delivered of U.S. Treasury securities with a constant maturity (as
compiled and published in the most recent Federal Reserve Statistical Release
H. 15 (519)) of ten years.

“Treasury Regulations” means the final,
temporary and proposed regulations under the Code promulgated from time to time
(including corresponding provisions of succeeding provisions) as in effect for
the relevant taxable period.

“Valuation Assumptions” shall mean, as of any
Valuation Date, the assumptions described in Schedule A to this Agreement.

“Valuation Date” means the date of an Early
Termination Notice for purposes of determining an Early Termination Payment.

ARTICLE II

Determination of Realized Tax Benefit or
Realized Tax Detriment

SECTION 2.01.  Original Sale
Basis Adjustment.  IBGI and IBG
Holdings hereby acknowledge and agree that (i) IBG Holdings will recognize gain
on the Original Sale under Section 741 of the Code, and (ii) IBGI’s share of
the basis in the Original Assets shall be increased by the excess of its
adjusted basis in the interests in IBG LLC acquired by IBGI in the Original
Sale, adjusted to take into account the Imputed Principal of Tax Benefit
Payments as made, over the acquired interests’ proportionate share of the basis
of the Original Assets on the Original Sale Date.

SECTION 2.02.  Original Sale
Basis Schedule.

(a)           Generally.  Within 120 calendar days after the
Original Sale Date, IBGI shall deliver (or cause IBG LLC to deliver) to IBG
Holdings a schedule (the “Original Sale Basis Schedule”) that shows, in
reasonable detail, for U.S. federal income tax purposes, (i) the actual tax
basis as of the Original Sale Date of the Original Assets, (ii) the Basis
Adjustment with respect to the Original Assets as a result of the Original Sale
and (iii) the period or periods, if any, over which the Original Assets are
amortizable or depreciable for U.S. federal income tax 

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purposes.  At the time IBG LLC delivers the Original
Sale Basis Schedule to IBG Holdings, IBGI shall (x) deliver (or cause IBG LLC
to deliver) to IBG Holdings schedules and work papers providing reasonable
detail regarding the preparation of the Original Sale Basis Schedule and an
Advisory Firm Letter supporting such Original Sale Basis Schedule and (y) allow
IBG Holdings reasonable access to the appropriate representatives at IBGI, IBG
LLC and the Advisory Firm in connection with its review of such schedule.  The Original Sale Basis Schedule shall become
final and binding on the parties unless IBG Holdings, within 30 calendar days
after receiving such Original Sale Basis Schedule, provides IBGI with notice of
a material objection to such Original Sale Basis Schedule made in good faith
and in reasonable detail.  If the
parties, negotiating in good faith, are unable to successfully resolve the
issues raised in such notice within 30 calendar days after such notice was
delivered to IBGI, IBGI and IBG Holdings shall employ the Reconciliation
Procedures.

(b)           Amendments
to Original Sale Basis Schedule. 
The Original Sale Basis Schedule may be amended from time to time by
IBGI with the consent of the Audit Committee (i) in connection with a
Determination, (ii) to correct inaccuracies to the Original Sale Basis Schedule
identified after the Original Sale Date as a result of the receipt of additional
information relating to facts or circumstances on or prior to the Original Sale
Date or (iii) to comply with the expert’s determination under the
Reconciliation Procedures.  At the time
IBGI delivers such amended Original Sale Basis Schedule to IBG Holdings, it
shall (x) deliver to IBG Holdings schedules and work papers providing
reasonable detail regarding the preparation of the amended Original Sale Basis
Schedule and an Advisory Firm Letter supporting such amended Original Sale
Basis Schedule and (y) allow IBG Holdings reasonable access to the appropriate
representatives at IBG, IBG LLC and the Advisory Firm in connection with its
review of such schedule.  The amended
Original Sale Basis Schedule shall become final and binding on the parties unless
IBG Holdings, within 30 calendar days after receiving such amended Original
Sale Basis Schedule, provides IBGI with notice of a material objection to such
amended Original Sale Basis Schedule made in good faith and in reasonable
detail.  If the parties, negotiating in
good faith, are unable to successfully resolve the issues raised in such notice
within 30 calendar days after such notice was delivered to IBGI, IBGI and IBG
Holdings shall employ the Reconciliation Procedures.

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SECTION 2.03. 
Basis Adjustment Attributable to an Exchange.  Pursuant to an Exchange, IBG Holdings shall
sell and exchange a number of interests in IBG LLC to IBGI as necessary to
provide IBG Holdings with consideration to give effect to any redemption of
interests of the Members in IBG Holdings. 
The parties hereto acknowledge that (i) IBG Holdings will recognize
taxable gain or loss on the Exchange for U.S. federal income tax purposes under
Section 741 of the Code, and (ii) IBGI’s share of the basis in the Exchange
Assets shall be increased by the excess, if any, of (A) adjusted basis in the
interests in IBG LLC acquired by IBGI, adjusted to take into account the
Imputed Principal of any Tax Benefit Payments as made by IBGI with respect
thereto, over (B) IBGI’s proportionate share of the basis of the Exchange
Assets immediately after the Exchange attributable to the IBG LLC interests
exchanged.  IBGI and IBG Holdings will
treat such gain and basis adjustment as occurring entirely on the Exchange Date
unless there is a Determination to the contrary.

SECTION 2.04. 
Exchange Basis Schedule.

(a)           Generally.  Within 120 calendar days after the
end of a Covered Taxable Year in which any Exchange has been effected, IBGI
shall deliver (or cause IBG LLC to deliver) to IBG Holdings a schedule (the “Exchange
Basis Schedule”) approved by the Audit Committee that shows, in reasonable
detail, for U.S. federal income tax purposes, (i) the actual tax basis as of
the first applicable Exchange Date in such Covered Taxable Year of the Exchange
Assets, (ii) the Basis Adjustment with respect to the Exchange Assets as a
result of the Exchanges effected in such Covered Taxable Year, calculated in
the aggregate, and (iii) the period or periods, if any, over which the Exchange
Assets are amortizable or depreciable. 
At the time IBGI delivers (or causes IBG LLC to deliver) the Exchange
Basis Schedule to IBG Holdings, it shall (x) deliver (or cause IBG LLC to
deliver) to IBG Holdings schedules and work papers providing reasonable detail
regarding the preparation of the Exchange Basis Schedule and an Advisory Firm
Letter supporting such Exchange Basis Schedule and (y) allow IBG Holdings
reasonable access to the appropriate representatives at IBGI, IBG LLC and the
Advisory Firm in connection with its review of such schedule.  The Exchange Basis Schedule shall become
final and binding on the parties unless IBG Holdings, within 30 calendar days
after receiving such Exchange Basis Schedule, provides IBGI with notice of a
material objection to such Exchange Basis Schedule made in good faith and in
reasonable detail.  If the parties,
negotiating in good faith, are unable to successfully resolve the issues raised
in such notice within 30 calendar days after such notice was delivered to IBGI,
IBGI and IBG Holdings shall employ the Reconciliation Procedures.

(b)           Amendments
to Exchange Basis Schedule. 
The Exchange Basis Schedule may be amended from time to time by IBGI
with the consent of the Audit Committee (i) in connection with a Determination,
(ii) to correct inaccuracies to the original Exchange Basis Schedule identified
after the date of the Exchange as a result of the receipt of additional
information or (iii) to comply with the expert’s determination under the
Reconciliation Procedures.  At the time
IBGI delivers such amended Exchange Basis Schedule to IBG Holdings, it shall
(x) deliver to IBG Holdings schedules and work papers providing reasonable
detail regarding the preparation of the amended Exchange Basis Schedule and an
Advisory Firm Letter supporting such amended Exchange Basis Schedule and (y)
allow IBG Holdings 

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reasonable
access to the appropriate representatives at IBGI, IBG LLC and the Advisory
Firm in connection with its review of such schedule.  The amended Exchange Basis Schedule shall
become final and binding on the parties unless IBG Holdings, within 30 calendar
days after receiving such amended Exchange Basis Schedule, provides IBGI with
notice of a material objection to such amended Exchange Basis Schedule made in
good faith and in reasonable detail.  If
the parties, negotiating in good faith, are unable to successfully resolve the
issues raised in such notice within 30 calendar days after such notice was
delivered to IBGI, IBGI and IBG Holdings shall employ the Reconciliation
Procedures.

SECTION 2.05. 
Tax Benefit Schedule.

(a)           Generally.  Within 10 calendar days after
filing its U.S. federal income Tax Return for the relevant Covered Taxable
Year, IBGI shall provide to IBG Holdings a schedule approved by the Audit
Committee showing, in reasonable detail, the calculation of IBGI’s Realized Tax
Benefit or Realized Tax Detriment for such Covered Taxable Year (the “Tax
Benefit Schedule”).  At the time IBGI
delivers the Tax Benefit Schedule to IBG Holdings it shall (i) deliver to IBG
Holdings schedules and work papers providing reasonable detail regarding the
preparation of the Tax Benefit Schedule and an Advisory Firm Letter supporting
such Tax Benefit Schedule and (ii) allow IBG Holdings reasonable access to the
appropriate representatives at IBGI, IBG LLC and the Advisory Firm in
connection with its review of such schedules. 
The Tax Benefit Schedule shall become final and binding on the parties
unless IBG Holdings, within 30 calendar days after receiving such Tax Benefit
Schedule, provides IBGI with notice of a material objection to such Tax Benefit
Schedule made in good faith and in reasonable detail.  If the parties, negotiating in good faith,
are unable to successfully resolve the issues raised in such notice within 30
calendar days after receipt thereof by IBGI, IBGI and IBG Holdings shall employ
the Reconciliation Procedures.

(b)           Amendments
to Tax Benefit Schedule.  A
Tax Benefit Schedule for any Covered Taxable Year may be amended from time to
time by IBGI with the consent of the Audit Committee (i) in connection with a
Determination affecting such Tax Benefit Schedule, (ii) to correct inaccuracies
in the original Tax Benefit Schedule identified as a result of the receipt of
additional factual information relating to a Covered Taxable Year after the date
the Tax Benefit Schedule was provided to IBG Holdings, (iii) to reflect a
change in the Realized Tax Benefit or Realized Tax Detriment for such Covered
Taxable Year attributable to a carryback or carryforward of a loss or other tax
item to such Covered Taxable Year, (iv) to reflect a change in the Realized Tax
Benefit or Realized Tax Detriment for such Covered Taxable Year attributable to
an amended tax return filed for such Covered Taxable Year (provided, however,
that such a change attributable to an audit of a Tax Return by an applicable
Taxing Authority shall not be taken into account on an Amended Tax Benefit
Schedule unless and until there has been a Determination with respect to such
change) or (v) to comply with the expert’s determination under the Reconciliation
Procedures.  At the time IBGI delivers
such an amended Tax Benefit Schedule pursuant to this Section 2.05(b) (an “Amended
Tax Benefit Schedule”) to IBG Holdings it shall (x) deliver to IBG Holdings
schedules and work papers providing reasonable detail regarding the preparation
of the Amended Tax Benefit Schedule and an Advisory Firm

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Letter
supporting such Amended Tax Benefit Schedule and (y) allow IBG Holdings
reasonable access to the appropriate representatives at IBGI, IBG LLC and the
Advisory Firm in connection with its review of such schedule.  Such Amended Tax Benefit Schedule shall
become final and binding on the parties unless IBG Holdings, within 30 calendar
days after receiving such Amended Tax Benefit Schedule, provides IBGI with notice
of a material objection to such Amended Tax Benefit Schedule made in good faith
and in reasonable detail.  If the
parties, negotiating in good faith, are unable to successfully resolve the
issues raised in such notice within 30 calendar days after such notice was
delivered to IBGI, IBGI and IBG Holdings shall employ the Reconciliation
Procedures.

(c)           Applicable
Principles.  The Realized Tax
Benefit or Realized Tax Detriment for each Covered Taxable Year is intended to
measure the decrease or increase in the actual Covered Tax liability of IBGI
for such Covered Taxable Year attributable to the Basis Adjustment and Imputed
Interest, determined using a “with and without” methodology.  For avoidance of doubt, the actual Covered
Tax liability will take into account the deduction of the portion of the Tax
Benefit Payment that must be accounted for as Imputed Interest under the Code
based upon the characterization of the Tax Benefit Payment as additional
consideration payable by IBGI for the IBG LLC interests acquired in the
Original Sale or an Exchange, as applicable. 
Carryovers or carrybacks of any Covered Tax item attributable to the
Basis Adjustment and Imputed Interest (determined using such “with and without”
methodology) shall be considered to be subject to the rules of the Code and the
Treasury Regulations or the appropriate provisions of U.S. state and local
income and franchise tax law, as applicable, governing the use, limitation and
expiration of carryovers or carrybacks of the relevant type.  If a carryover or carryback of any Covered
Tax item includes a portion that is attributable to the Basis Adjustment or
Imputed Interest and another portion that is not, such portions shall be
considered to be used in the order determined using such “with and without”
methodology.

SECTION 2.06.  No Certainty of
Tax Benefit.  Tax Benefit Payments
will only be made based upon Realized Tax Benefits.  The parties acknowledge that circumstances
may exist where either no Basis Adjustment results from an Exchange, no positive
Basis Adjustment results from an Exchange or no Tax Benefit is realized as the
result of a positive Basis Adjustment resulting from an Exchange.  For example, if as the result of overlapping
ownership of IBGI and IBG Holdings IBGI and IBG Holdings are “related persons”
within the meaning of the anti-churning rules of Code Section 197(f)(9), the
portion of the Basis Adjustment allocable to good will for the account of IBGI
will not be subject to amortization.  In
any such circumstance, Tax Benefit Payments that would otherwise have become
due will not become due or will become due in greatly reduced amounts.

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ARTICLE III

Tax Benefit Payments

SECTION 3.01. 
Payments.

(a)           Except
as provided in Section 3.03, within three calendar days of the delivery of the
Tax Benefit Schedule to IBG Holdings for any Covered Taxable Year, IBGI shall
pay to IBG Holdings an amount equal to the Tax Benefit Payment (as defined
below) for such Covered Taxable Year. 
Each Tax Benefit Payment shall be made by wire transfer of immediately
available funds to the bank account of IBG Holdings previously designated by
IBG Holdings to IBGI.  For the avoidance
of doubt, no Tax Benefit Payment shall be made in respect of estimated tax
payments, including, without limitation, estimated federal income tax payments.

(b)           A
“Tax Benefit Payment” shall equal 85% of IBGI’s Realized Tax Benefit, if
any, for a Covered Taxable Year,

increased by:

(1)           interest
calculated at the Agreed Rate from the due date (without extensions) for filing
the Tax Return for such Covered Taxable Year); and

(2)           85%
of the amount of the excess Realized Tax Benefit reflected on an Amended Tax
Benefit Schedule for a previous Covered Taxable Year over the Realized Tax
Benefit (or Realized Tax Detriment) reflected on the Tax Benefit Schedule for
such previous Covered Taxable Year, and

decreased by:

(3)           an
amount equal to 85% of IBGI’s Realized Tax Detriment (if any) for any previous
Covered Taxable Year; and

(4)           85%
of the amount of the excess Realized Tax Benefit reflected on the Tax Benefit
Schedule for a previous Covered Taxable Year over the Realized Tax Benefit (or
Realized Tax Detriment) reflected on the Amended Tax Benefit Schedule for such
previous Covered Taxable Year;

provided,
however, that the amounts described in clauses 3.01(b)(2), (3) and (4) shall
not be taken into account in determining a Tax Benefit Payment attributable to
any Covered Taxable Year to the extent of such amounts taken into account in
determining any Tax Benefit Payment in a preceding Covered Taxable Year.

SECTION 3.02.  No Duplicative
Payment.  No duplicative payment of
any amount (including interest) will be required under this Agreement.

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SECTION 3.03.  Suspension of
Tax Benefit Payments Following Change Notice.  If IBGI or IBG LLC receives a Change Notice,
which, if sustained, would result in (i) a reduction in the amount of Realized
Tax Benefit (or the increase in the amount of Realized Tax Detriment) with
respect to a Covered Taxable Year preceding the taxable year in which the
Change Notice is received or (ii) a reduction in the amount of Tax Benefit
Payments IBGI will be required to pay to IBG Holdings with respect to Covered
Taxable Years after and including the taxable year in which the Change Notice
is received (either, a “Potential Reduction”), prompt written notice
shall be given to IBG Holdings, and Tax Benefit Payments shall be suspended as
necessary to maintain the status quo until a Determination is reached with
respect to the Change Notice.

SECTION 3.04.  Repayment or
Additional Payment of Tax Benefit upon Final Adjustment.  If a Determination with respect to the Change
Notice results in a reduction (or increase) in the amount that should have been
paid as any Tax Benefit Payment (the “Final Adjustment”), then not later
than 30 days after IBGI provides IBG Holdings with a copy of the Determination,
IBG Holdings shall pay or cause to be paid to IBGI 85% of the Final Adjustment
in the case of a reduction, or IBGI shall pay to IBG Holdings 85% of the Final
Adjustment in the case of an increase. 
All suspended Tax Benefit Payments, adjusted as necessary to reflect the
Determination, shall promptly be made.

ARTICLE IV

Termination

SECTION 4.01.  Scheduled
Termination Date.  This Agreement
shall terminate effective upon the earlier of (i) the end of the Taxable Year
that includes the 50th anniversary of
the Original Sale Date, or (ii) the end of the Taxable Year that includes the
16th anniversary of the date upon which all rights
of sale and exchange granted under the Exchange Agreement have terminated.  Upon the Scheduled Termination Date, IBGI
shall have no further payment obligations under this Agreement, other than for
(i) any Tax Benefit Payment agreed to by IBGI and IBG Holdings as due and
payable but unpaid as of the Scheduled Termination Date and (ii) any Tax
Benefit Payment with respect to the Covered Taxable Year ending with the
Scheduled Termination Date.

SECTION 4.02. 
Early Termination.

(a)           At
any time after the 25th anniversary of the date of this Agreement, IBGI may
terminate this Agreement with the consent of the Audit Committee effective as
of the Early Termination Date by paying to IBG Holdings the Early Termination
Payment as provided in paragraph (c) below. 
Upon payment of the Early Termination Payment by IBGI, IBGI shall have
no further payment obligations under this Agreement, other than for any (i) Tax
Benefit Payment agreed to by IBGI and IBG Holdings as due and payable but
unpaid as of the Early Termination Date and (ii) any Tax Benefit Payment due
for the Covered Taxable Year ending with or including the Early Termination
Date (except to the extent that the amount described in clause (i) or (ii) is
included in the Early Termination Payment).

 12
 

(b)           If
IBGI intends to exercise its right of early termination, it shall first provide
at least 60 days’ (but not more than 90 days’) prior written notice of its
intention to exercise its termination rights with respect to this Agreement to
IBG Holdings (the “Preliminary Termination Notice”); and, for the next
succeeding 30 days, IBG Holdings shall have the right to sell and exchange its
interests in IBG LLC in accordance with the Exchange Agreement.  To exercise its right of early termination
under Section 4.02(a) above, within 60 days following the requisite Preliminary
Termination Notice to IBG Holdings, IBGI shall deliver to IBG Holdings a notice
(the “Early Termination Notice”) specifying IBGI’s intention to exercise
its right of termination and showing in reasonable detail the calculation of
the Early Termination Payment.  At the
time IBGI delivers the Early Termination Notice to IBG Holdings, IBGI shall (i)
deliver to IBG Holdings schedules and work papers providing reasonable detail
regarding the calculation of the Early Termination Payment, in a manner
consistent with the definition of such term and an Advisory Firm Letter
supporting such calculation and (ii) allow IBG Holdings reasonable access to
the appropriate representatives at IBGI, IBG LLC and the Advisory Firm in
connection with its review of such calculation. 
The calculation contained in such Early Termination Notice shall become
final and binding on the parties unless IBG Holdings, within 30 calendar days
after receiving such calculation, provides IBGI with notice of a material
objection to such calculation made in good faith and in reasonable detail.  If the parties, negotiating in good faith,
are unable to successfully resolve the issues raised in such calculation within
30 calendar days after such notice of material objection, IBGI, and IBG
Holdings shall employ the Reconciliation Procedures.

(c)           Within
forty-five (45) calendar days after the delivery to IBG Holdings of the Early
Termination Notice or ten (10) days after any amendment to the Early
Termination Notice, IBGI shall pay to IBG Holdings an amount equal to the Early
Termination Payment.  Such payment shall
be made by wire transfer of immediately available funds to a bank account
designated by IBG Holdings.

(d)           For
the avoidance of doubt, IBG Holdings shall not be entitled to cause an early
termination of this Agreement.

ARTICLE V

Subordination and Late Payments

SECTION 5.01.  Subordination.  Notwithstanding any other provision of this
Agreement to the contrary, any Tax Benefit Payment or Early Termination Payment
required to be made by IBGI to IBG Holdings under this Agreement shall rank
subordinate and junior in right of payment to any Senior Obligations and shall
rank pari passu with all current or future unsecured obligations of IBGI that
are not Senior Obligations.

SECTION 5.02.  Late Payments
by IBGI.  The amount of all or any
portion of a payment not made to IBG Holdings when due under the terms of this
Agreement shall be payable together with any interest thereon, computed at the
Agreed Rate and commencing from the date on which such payment was due and
payable.

 13
 

ARTICLE VI

Election; No Disputes; Consistency;
Cooperation

SECTION 6.01.  Election to be
Filed.  As managing member of IBG
LLC, IBGI shall cause IBG LLC to file an election under Section 754 of the Code
commencing with its Taxable Year in which the Original Sale occurs.

SECTION 6.02.  IBG Holdings
Participation In IBGI Tax Matters. 
Except as otherwise provided herein, IBGI shall have full responsibility
for, and sole discretion over, all matters concerning Covered Taxes of IBGI and
IBG LLC, including without limitation the preparation, filing or amending of
any Tax Return and defending, contesting or settling any issue pertaining to
Covered Taxes.  Notwithstanding the
foregoing, IBGI shall notify IBG Holdings of, and keep IBG Holdings reasonably
informed with respect to, and IBG Holdings shall have the right to participate
in and monitor (but, for the avoidance of doubt, not to control) the portion of
any audit of IBGI by a Taxing Authority the outcome of which is reasonably
expected to affect IBG Holdings’ rights under this Agreement.  IBGI shall provide to IBG Holdings reasonable
opportunity to provide information and other input to IBGI and its advisors
concerning the conduct of any such portion of such audits.  IBGI shall not settle or otherwise resolve
any audit or other challenge by a Taxing Authority relating to the Basis
Adjustment or the deduction of Imputed Interest without the consent of the
Audit Committee and IBG Holdings, which consent IBG Holdings shall not
unreasonably withhold, condition or delay.

SECTION 6.03.  Consistency.  Unless there is a Determination to the
contrary, IBGI, IBG Holdings and the Members (in accordance with the IBG
Holdings Operating Agreement), on their own behalf and on behalf of each of
their affiliates, agree to report and cause to be reported for all U.S.
purposes, including for purposes of all Covered Taxes and U.S. financial
reporting purposes, all items related to Covered Taxes and this Agreement
(including without limitation the Basis Adjustment and each Tax Benefit
Payment) in a manner consistent with that specified by IBGI in any schedule,
letter or certificate required to be provided by or on behalf of IBGI under
this Agreement.  In the event that an
Advisory Firm is replaced with another firm acceptable to the Audit Committee,
such replacement Advisory Firm shall be required to perform its services under
this Agreement using procedures and methodologies consistent with the previous
Advisory Firm, unless otherwise required by law or IBGI, the Audit Committee
and IBG Holdings agree to the use of other procedures and methodologies.

SECTION 6.04.  Cooperation.  IBG Holdings shall (and shall cause its
affiliates to) (i) furnish to IBGI in a timely manner such information,
documents and other materials as IBGI may reasonably request for purposes of
making any determination or computation necessary or appropriate under this
Agreement, preparing any Tax Return or contesting or defending any audit,
examination or controversy with any Taxing Authority, (ii) make its employees
available to IBGI and its representatives to provide explanations of documents
and materials and such other information as IBGI or its representative may
reasonably request in connection with any of 

 14
 

the matters described in clause (i) above, and (iii) reasonably
cooperate in connection with any such matter.

ARTICLE VII

General Provisions

SECTION 7.01.  Notices.  All notices, requests, claims, demands and
other communications hereunder shall be in writing and shall be deemed duly
given and received (i) on the date of delivery if delivered personally, or by
facsimile upon confirmation of transmission by the sender’s fax machine if sent
on a Business Day (or otherwise on the next Business Day) or (ii) on the first
Business Day following the date of dispatch if delivered by a recognized
next-day courier service.  All notices
hereunder shall be delivered as set forth below, or pursuant to such other
instructions as may be designated in writing by the party to receive such
notice:

	
   

  	
  if to IBGI, to:

  
	
   

  	
   

  
	
   

  	
  One Pickwick
  Plaza

  
	
   

  	
  Greenwich, CT
  06830

  
	
   

  	
  Fax: (203)
  618-5934

  
	
   

  	
  Attention:
  Thomas Peterffy, Chairman, Chief Executive

  Officer and President

  
	
   

  	
   

  
	
   

  	
  with a copy to:

  
	
   

  	
   

  
	
   

  	
  Dechert LLP

  
	
   

  	
  30 Rockefeller
  Plaza

  
	
   

  	
  New York, NY
  10112

  
	
   

  	
  Fax: (212)
  698-3599

  
	
   

  	
  Attention: Adam
  M. Fox, Esq.

  
	
   

  	
   

  
	
   

  	
  if to IBG
  Holdings, to:

  
	
   

  	
   

  
	
   

  	
  One Pickwick
  Plaza

  
	
   

  	
  Greenwich, CT
  06830

  
	
   

  	
  Fax: (203)
  618-5934

  
	
   

  	
  Attention:
  Thomas Peterffy, Managing Member

  
			

 

Any party may change its
address or fax number by giving the other party written notice of its new
address or fax number in the manner set forth above.

SECTION 7.02.  Reconciliation.  In the event that IBGI and IBG Holdings are
unable to resolve a disagreement within the relevant period designated in this
Agreement, the matter shall be submitted for determination to a nationally
recognized expert in the particular area of disagreement employed by a
nationally recognized accounting firm or a law firm (other than the 

 15
 

Advisory Firm), which expert is mutually acceptable to both parties and
the Audit Committee.  If the matter is
not resolved before any payment that is the subject of a disagreement is due or
any Tax Return reflecting the subject of a disagreement is due, such payment
shall be made on the date prescribed by this Agreement and such Tax Return may
be filed as prepared by IBGI, subject to adjustment or amendment upon resolution.  The determinations of the expert pursuant to
this Section 7.02 shall be binding on IBGI, IBG LLC and IBG Holdings absent
manifest error.

SECTION 7.03.  Withholding.  IBGI shall be entitled to deduct and withhold
from any payment payable pursuant to this Agreement such amounts as IBGI is
required to deduct and withhold with respect to the making of such payment
under the Code, or any provision of state, local or foreign tax law.  To the extent that amounts are so withheld
and paid over to the appropriate taxing authority by IBGI, such withheld
amounts shall be treated for all purposes of this Agreement as having been paid
to IBG Holdings.  Each party will
cooperate to minimize withholding obligations, if any, with respect to payments
required hereunder.

SECTION 7.04.  Submission to
Jurisdiction; Waivers.  With respect
to any Proceeding, each party to this Agreement irrevocably (i) consents and
submits to the exclusive jurisdiction of the courts of the States of New York
and Delaware and any court of the U.S. located in the Borough of Manhattan in
New York City or the State of Delaware; (ii) waives any objection which such
party may have at any time to the laying of venue of any Proceeding brought in
any such court, waives any claim that such Proceeding has been brought in an
inconvenient forum and further waives the right to object, with respect to such
Proceeding, that such court does not have jurisdiction over such party; (iii)
consents to the service of process at the address set forth for notices in Section
7.01 herein; provided, however, that such manner of service of
process shall not preclude the service of process in any other manner permitted
under applicable law; and (iv) waives, to the fullest extent permitted by
applicable law, any and all rights to trial by jury in connection with any
Proceeding.

SECTION 7.05.  Amendments.  No amendment to this Agreement shall be
effective unless it is (i) in writing, (ii) signed by IBGI and IBG Holdings and
(iii) approved by the Audit Committee.

SECTION 7.06.  Entire
Agreement; No Third Party Beneficiaries. 
This Agreement constitutes the entire agreement and supersedes all prior
agreements and understandings, both written and oral, among the parties with
respect to the subject matter hereof. 
This Agreement shall be binding upon and inure solely to the benefit of
each party hereto and their respective successors and permitted assigns, and
nothing in this Agreement, express or implied, is intended to or shall confer
upon any other Person any right, benefit or remedy of any nature whatsoever
under or by reason of this Agreement.

SECTION 7.07.  Severability.  If any term or other provision of this
Agreement is invalid, illegal or incapable of being enforced by any law or
public policy, all other terms and provisions of this Agreement shall
nevertheless remain in full force and effect so long as the economic or legal
substance of the transactions contemplated hereby is not affected in any manner
materially adverse to any party.  Upon
such determination that any term or other 

 16
 

provision is invalid, illegal or incapable of being enforced, the
parties hereto shall negotiate in good faith to modify this Agreement so as to
effect the original intent of the parties as closely as possible in an
acceptable manner in order that the transactions contemplated hereby are
consummated as originally contemplated to the greatest extent possible.

SECTION 7.08.  Successors’
Assignment.  IBG Holdings may assign
its rights to Tax Benefit Payments pursuant to this Agreement to any of the
Members without the prior written consent of IBGI and the Audit Committee,
which consent shall not be unreasonably withheld, conditioned or delayed; provided,
however, IBG Holdings may pledge some or all of its rights, interests or
entitlements under this Agreement to any U.S. money center bank in connection
with a bona fide loan or other indebtedness. 
IBGI may not assign any of its rights, interests or entitlements under
this Agreement without the consent of IBG Holdings, not to be unreasonably
withheld or delayed.  Subject to each of
the two immediately preceding sentences, this Agreement will be binding upon,
inure to the benefit of and be enforceable by, the parties and their respective
successors and assigns including any acquirer of all or substantially all of
the assets of IBGI.

SECTION 7.09.  Counterparts.  This Agreement may be executed in one or more
counterparts, all of which shall be considered one and the same agreement and
shall become effective when one or more counterparts have been signed by each
of the parties and delivered to the other parties, it being understood that all
parties need not sign the same counterpart.

SECTION 7.10.  Titles and
Subtitles.  The titles of the
sections and subsections of this Agreement are for convenience of reference
only and are not to be considered in construing this Agreement.

SECTION 7.11.  Governing Law.  This Agreement shall be governed by, and
construed in accordance with, the laws of the State of New York without giving
effect to applicable principles of conflict of laws.

 17

 

IN WITNESS WHEREOF, IBGI and IBG Holdings have duly
executed this Agreement as of the date first written above.

	
  

  	
  INTERACTIVE BROKERS GROUP, INC.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Thomas
  Peterffy

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Thomas Peterffy

  
	
   

  	
   

  	
  Title:

  	
  Chairman, Chief Executive Officer and

  
	
   

  	
   

  	
  President

  
	
   

  	
   

  	
   

  
	
   

  	
  Address:

  	
  One Pickwick Plaza

  
	
   

  	
   

  	
  Greenwich, CT 06830

  
	
   

  	
   

  	
   

  
	
   

  	
  IBG HOLDINGS LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Thomas
  Peterffy

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Thomas Peterffy

  
	
   

  	
   

  	
  Title:

  	
  Managing Member

  
	
   

  	
   

  	
   

  
	
   

  	
  Address:

  	
  One Pickwick Plaza

  
	
   

  	
   

  	
  Greenwich, CT 06830Exhibit
10.1

1470-1530 Doolittle Drive

SAN LEANDRO, CALIFORNIA

PURCHASE AND SALE
AGREEMENT AND JOINT ESCROW INSTRUCTIONS

between

SIMPSON MANUFACTURING
CO., INC., a Delaware corporation

AS SELLER,

and

OAKLAND LAND COMPANY,
LLC,

AS PURCHASER

June 5, 2007

PURCHASE AND SALE
AGREEMENT AND JOINT ESCROW INSTRUCTIONS

THIS PURCHASE AND SALE AGREEMENT AND JOINT ESCROW
INSTRUCTIONS (this “Agreement”) is made as of the 5th day of June, 2007 (the “Effective
Date”), by and between SIMPSON MANUFACTURING CO., INC., a Delaware corporation
(“Seller”), and OAKLAND LAND COMPANY, LLC, a California limited liability
company or approved assignee (jointly and severally, “Purchaser”) with
reference to the following facts.

A.            Seller
owns the parcel of real property and improvements located at 1470, 1500 and
1530 Doolittle Drive, San Leandro, California consisting of Parcel Numbers 77A
680 2-03, 77A 680 2-08,77A 680 2-10, 77A 680 2-12, 77A 680 2-07 and 77A 680
2-11.

B.            Seller
has agreed to sell to Purchaser and Purchaser has agreed to buy from Seller the
Property described in this Agreement in accordance with and upon satisfaction
of the terms and conditions set forth herein.

NOW, THEREFORE, in consideration of the mutual
covenants and conditions contained herein, and for other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the
parties hereto agree as follows:

ARTICLE 1

PURCHASE AND SALE

1.1           Agreement of
Purchase and Sale. Subject to the terms and conditions hereinafter set
forth, Seller agrees to sell and convey to Purchaser, and Purchaser agrees to
purchase from Seller, the following:

(a)           that certain tract or
parcel of Real Property situated in the City of San Leandro, California more
particularly described in Exhibit A attached hereto and made a part
hereof, consisting of approximately 10.41 acres together with all improvements,
rights, privileges, easements and appurtenances pertaining to such property,
including all right, title and interest of Seller in and to adjacent streets,
or rights-of-way (the “Real Property”);

(b)           All buildings,
structures, improvements and fixtures located on the Real Property consisting
of approximately 184,251 square feet of those certain buildings, and all
apparatus, equipment and appliances incorporated therein, such as heating and
air-conditioning systems, facilities used to provide any utility service,
ventilation or other services thereto, parking lots, landscaping and roadways
(collectively, “Improvements”);

(c)           any and all of Seller’s
right, title and interest in and to all tangible personal property located upon
the Real Property (the “Personal Property”); and,

(d)           any and all of Seller’s
right, title and interest in and to (i) all assignable permits, licenses,
approvals, and entitlements issued by any governmental authority in connection
with the Real Property and (ii) all assignable plans and specifications
pertaining to the Real Property or the Personal Property (collectively, the “Intangibles”).

1.2           Property Defined.
The Real Property, the Improvements, the Personal Property and the Intangibles
are hereinafter sometimes referred to collectively as the “Property.”

1.3           Purchase Price. The
purchase price for the Property shall be the amount of $13,500,000.00 (the “Purchase
Price”).

1.4           Payment of Purchase
Price. Purchaser shall deposit the Purchase Price, as increased or
decreased by prorations and adjustments as herein provided to Title Company as
more particularly set forth in Section 4.3.

1.5           Deposit.

(a)           On the Effective Date,
Purchaser shall deposit into Escrow with First American Title Insurance Company
(the “Title Company”), having its office at 1850 Mt. Diablo Blvd., Suite 300,
Walnut Creek, California, 94596, Attn: Teri Dashwood (the “Title Company”) in
immediately available funds the sum of $100,000.00 (the “Deposit”). The Deposit
shall be held in an interest bearing account approved by Purchaser and Seller. The
Deposit shall be refundable to Purchaser if Purchaser terminates this Agreement
pursuant to Sections 2 or 3.

(b)           After the expiration of the
later of the Title Inspection Period (as hereinafter defined) and the
Inspection Period (as hereinafter defined) (such later date, the “Approval Date”),
the Deposit shall become non-refundable; provided, however, that the Deposit
shall be refundable to Purchaser if this Agreement is terminated pursuant to a
specific provision of this Agreement which provides that the Deposit is to be
returned to Purchaser under such circumstances.

(c)           The Title Company shall hold
the Deposit in an interest-bearing account reasonably acceptable to Seller and
Purchaser, in accordance with the terms and conditions of this Agreement. All
interest on such sum shall be deemed income of Purchaser, and Purchaser shall
be responsible for the payment of all costs and fees imposed on the Deposit
account. The Deposit and all accrued interest shall be applied or distributed
in accordance with the terms of this Agreement.

1.6           Deposit as
Liquidated Damages. FROM AND AFTER THE EXPIRATION OF THE APPROVAL DATE,
EXCEPT WHERE THIS AGREEMENT PROVIDES THAT THE DEPOSIT IS TO BE RETURNED TO
PURCHASER, IN THE EVENT THE SALE OF THE PROPERTY AS CONTEMPLATED HEREUNDER IS
NOT CONSUMMATED FOR ANY REASON EXCEPT (I) A DEFAULT UNDER THIS AGREEMENT ON THE
PART OF SELLER OR (II) A TERMINATION OF THIS AGREEMENT PURSUANT TO
ARTICLE 7, OR (III) THE FAILURE OF A CONDITION PRECEDENT IN SECTION 4.6,
THE DEPOSIT (INCLUDING ALL INTEREST EARNED FROM THE INVESTMENT THEREOF) SHALL
BE PAID TO AND RETAINED BY SELLER AS LIQUIDATED DAMAGES AND AS SELLER’S SOLE
AND EXCLUSIVE REMEDY UNDER THIS AGREEMENT, AT LAW OR IN EQUITY AS A RESULT OF
SUCH DEFAULT OR FAILURE TO CLOSE. THE PARTIES ACKNOWLEDGE THAT SELLER’S ACTUAL
DAMAGES IN THE EVENT THAT THE SALE IS NOT CONSUMMATED WOULD BE EXTREMELY
DIFFICULT OR IMPRACTICABLE TO DETERMINE. THEREFORE, BY SEPARATELY INITIALING
THIS SECTION, THE PARTIES ACKNOWLEDGE THAT THE NONREFUNDABLE DEPOSIT HAS BEEN
AGREED UPON, AFTER NEGOTIATION, AS THE PARTIES’ REASONABLE ESTIMATE OF SELLER’S
DAMAGES AND AS SELLER’S SOLE AND EXCLUSIVE REMEDY UNDER THIS AGREEMENT, AT LAW
OR IN EQUITY AGAINST PURCHASER IN THE EVENT THE CLOSING (AS DEFINED IN SECTION
4.1) DOES NOT OCCUR. NOTWITHSTANDING THE FOREGOING, IN NO EVENT SHALL THIS
SECTION 1.6 LIMIT THE DAMAGES RECOVERABLE BY EITHER PARTY AGAINST THE OTHER
PARTY DUE TO THE OTHER PARTY’S OBLIGATION TO INDEMNIFY SUCH PARTY IN ACCORDANCE
WITH THIS AGREEMENT OR THIRD PARTY CLAIMS ARISING OUT OF OR RELATING TO THIS
CONTRACT OR THE PROPERTY. PURCHASER AND SELLER ACKNOWLEDGE THAT THEY HAVE READ
AND UNDERSTOOD

 2
 

THE ABOVE PROVISION COVERING LIQUIDATED DAMAGES, AND THAT EACH PARTY
WAS REPRESENTED BY COUNSEL WHO EXPLAINED THE CONSEQUENCES OF THIS LIQUIDATED
DAMAGES PROVISION AT THE TIME THIS AGREEMENT WAS EXECUTED. SELLER HEREBY WAIVES
ANY AND ALL BENEFITS IT MAY HAVE UNDER CALIFORNIA CIVIL CODE SECTION 3389.

	
  Seller’ Initial

  	
  /s/ MJH

  	
   

  	
  Purchaser’s Initial

  	
  /s/ TMM

  	
   

  

 

1.7           Title Company.

(a)           Upon mutual execution
of this Agreement, the parties hereto shall deposit an executed counterpart of
this Agreement with Title Company and this Agreement shall serve as
instructions to Title Company for consummation of the purchase contemplated
hereby (“Escrow”). Seller and Purchaser shall execute such supplemental escrow
instructions as may be appropriate to enable Title Company to comply with the
terms of this Agreement, provided such supplemental escrow instructions are not
in conflict with this Agreement as it may be amended in writing from time to
time. In the event of any conflict between the provisions of this Agreement and
any supplementary escrow instructions signed by Purchaser and Seller, the terms
of this Agreement shall control. Title Company shall hold and dispose of the
Deposit and other funds and instruments delivered into Escrow in accordance
with the terms of this Agreement. Seller and Purchaser agree that the duties of
the Title Company hereunder are purely ministerial in nature and shall be
expressly limited to the matters set forth in this Agreement.

(b)           Title Company shall not
be responsible for any interest on the Deposit except as is actually earned, or
for the loss of any interest resulting from the withdrawal of the Deposit prior
to the date interest is posted thereon.

(c)           Title Company shall
execute this Agreement for the purpose of being bound by the provisions of this
Agreement directing action by the Title Company.

ARTICLE 2

TITLE AND SURVEY

2.1           Title Inspection
Period. Seller has delivered to Purchaser or will deliver to Purchaser (a)
a current preliminary title report on the Real Property, accompanied by copies
of all documents referred to in the report (collectively, the “Title Report”);
and (b) any survey of the Real Property in Seller’s possession or control (the “Survey”).
Purchaser shall have the right until forty-five (45) days after the delivery of
the items specified in (a) and (b) above (the “Title Inspection Period”) to
review the Title Report, tax bills and Survey. Purchaser shall be responsible
for the costs of any new survey or survey update required in connection with
the issuance of the Title Policy.

2.2           Title Examination.
Purchaser shall notify Seller in
writing (the “Title Notice”) prior to the expiration of the Title Inspection
Period which exceptions to title (including survey matters), if any, will not
be accepted by Purchaser. If Purchaser fails to notify Seller in writing of its
disapproval of any exceptions to title by the expiration of the Title
Inspection Period, Purchaser shall be deemed to have approved the condition of
title to the Real Property. If Purchaser notifies Seller in writing that
Purchaser objects to any exceptions to title, Seller shall have ten (10) days
after receipt of the Title Notice to notify Purchaser (x) that Seller will
remove such objectionable exceptions from title on or before the Closing (as defined
in Section 4.1); or (y) that Seller elects not to cause such exceptions to be
removed. If Seller gives Purchaser notice under clause (y) above, Purchaser
shall have five (5) days in which to notify Seller that Purchaser will
terminate this Agreement. If this Agreement is terminated pursuant to the
foregoing provisions of this paragraph, then neither party shall have any
further rights or obligations hereunder

 3
 

(except for any indemnity obligations of
either party pursuant to this Agreement), the Deposit shall be returned to
Purchaser and each party shall bear its own costs incurred hereunder.

2.3           Pre-Closing “Gap”
Title Defects. After the Effective Date, Seller shall not knowingly create
or permit the creation of any lien or encumbrance upon the Real Property not
disclosed by the Title Report or revealed by the Survey which would survive the
Closing (each such lien or encumbrance an “Intervening Lien”). If Seller or
Purchaser receives notice of any Intervening Lien, such party shall notify the
other party in within five (5) days of receipt of such notice (the “Gap Notice”).
If either party sends a Gap Notice to the Other Party, then, without limiting
any other rights of Seller or Purchaser pursuant to this Agreement, Purchaser
and Seller shall have the same rights and obligations with respect to such
notice, and Purchaser shall have the same right to terminate this Agreement, as
in the case of a Title Notice under Section 2.2 hereof.

2.4           Permitted Exceptions.
The Real Property shall be conveyed subject to the following matters, which are
hereinafter referred to as the “Permitted Exceptions”: (a) those matters that
either are not objected to in writing within the time periods provided in
Sections 2.2 or 2.3 hereof, or if objected to in writing by Purchaser, are
those subject to which Purchaser has elected or is deemed to have elected to
accept the conveyance of the Property; (b) the lien of all ad valorem real
estate taxes and assessments not yet due and payable as of the date of Closing;
(c) the standard printed exception in the Title Policy; and (d) items shown on
the Survey and not objected to by Purchaser or waived by Purchaser in
accordance with Section 2.2 or 2.3 hereof.

2.5           Payment of Monetary
Liens. Notwithstanding anything to the contrary contained in this
Agreement, the Permitted Exceptions shall not include and Seller shall cause to
be removed from record at or before the Closing at Seller’s cost, any then
existing monetary liens or encumbrances against the Property other than
current, non-delinquent real property taxes and assessments.

2.6           Conveyance of Title.
At Closing, Seller shall convey and transfer to Purchaser fee simple title to
the Real Property, by execution and delivery of the Deed (as defined in Section
4.2(a) hereof). Evidence of delivery of such title shall be the issuance by the
Title Company of an ALTA Coverage Owner’s Policy of Title Insurance (the “Title
Policy”) covering the Real Property, in the full amount of the Purchase Price,
subject only to the Permitted Exceptions.

ARTICLE 3

REVIEW OF PROPERTY

3.1           Right of Inspection.

(a)           Seller has delivered or
will deliver to Purchaser or, if such materials are voluminous will make
available for Purchaser to inspect at Seller’s offices, all Due Diligence
Materials in Seller’s possession or under Seller’s control. As used herein, the
“Due Diligence Materials” shall mean all documents, records and files in Seller’s
possession or under Seller’s control concerning the physical condition,
operation, title, entitlement status, development, and use of the Property and
all Intangibles relating to the Property in Seller’s possession or under Seller’s
control, including, to the extent in Seller’s possession or control, the
documents enumerated in the Due Diligence Checklist transmitted by Purchaser on
May 29, 2007,but excluding Seller’s corporate records, internal memoranda,
accounting and tax records and similar proprietary, confidential or privileged
information. Purchaser shall have the right until the date that is sixty (60)
days after the date all of the Due Diligence Materials are delivered or made
available to Purchaser (the “Inspection Period”), to make a physical inspection
of the Real Property, including an inspection of the environmental condition
thereof pursuant to the terms and conditions of

 4
 

this Agreement, and to examine the Due Diligence Materials. Seller
shall notify Purchaser in writing on the date that it has delivered or made
available the Due Diligence Materials.

(b)           Purchaser understands
and agrees that any on-site inspections of the Property shall occur during
normal business hours after twenty-four hours prior written or telephonic
notice to Seller and shall be conducted so as not to interfere unreasonably
with the use of the Property by Seller. Seller reserves the right to have a representative
present during any such inspections. At Seller’s option, Purchaser will furnish
to Seller copies of any reports received by Purchaser relating to any
inspections of the Property. Seller shall keep all such reports strictly
confidential and shall comply with any other reasonable requirements regarding
the disclosure or use of the reports provided by Purchaser.

(c)           In the event that
Purchaser desires to conduct on site testing at the Property (“Invasive Testing”),
Purchaser shall notify Seller of such desire and Purchaser shall perform such
Invasive Testing in accordance with the terms of the Invasive Testing
Requirements attached hereto as Exhibit D.

(d)           Except to the extent
resulting from Seller’s or its agent’s, employee’s or contractor’s negligence
or willful misconduct, Purchaser agrees to protect, indemnify, defend and hold
Seller harmless from and against any claim for liabilities, losses, costs,
expenses (including reasonable attorneys’ fees), damages or injuries arising
out of or resulting from the inspection of the Property by Purchaser or its
agents or consultants (other than matters arising as a result of discovery of
existing conditions beneath the Property). Notwithstanding anything to the
contrary in this Agreement, the obligation to indemnify and hold harmless
Seller shall survive Closing or any termination of this Agreement.

3.2           Environmental
Reports. SELLER SHALL DELIVER TO PURCHASER ANY ENVIRONMENTAL REPORTS AND
OTHER WRITTEN INFORMATION REGARDING ENVIRONMENTAL HAZARDS OR HAZARDOUS
SUBSTANCES SPECIFICALLY PREPARED FOR SELLER WITH RESPECT TO THE PROPERTY
(COLLECTIVELY, “ENVIRONMENTAL REPORTS”) IN ITS POSSESSION OR UNDER ITS CONTROL
AND PURCHASER WILL ACKNOWLEDGE IN WRITING ITS RECEIPT OF SUCH REPORTS. ANY
ENVIRONMENTAL REPORTS DELIVERED OR TO BE DELIVERED BY SELLER OR ITS AGENTS OR
CONSULTANTS TO PURCHASER ARE BEING MADE AVAILABLE SOLELY AS AN ACCOMMODATION TO
PURCHASER AND MAY NOT BE RELIED UPON BY PURCHASER IN CONNECTION WITH THE
PURCHASE OF THE PROPERTY. EXCEPT FOR ANY REPRESENTATIONS AND WARRANTIES SET
FORTH HEREIN, PURCHASER AGREES THAT SELLER SHALL HAVE NO LIABILITY OR
OBLIGATION WHATSOEVER FOR ANY INACCURACY IN OR OMISSION FROM ANY ENVIRONMENTAL
REPORT. PURCHASER HAS CONDUCTED, OR WILL CONDUCT PRIOR TO THE EXPIRATION OF THE
INSPECTION PERIOD, ITS OWN INVESTIGATION OF THE ENVIRONMENTAL CONDITION OF THE
PROPERTY TO THE EXTENT PURCHASER DEEMS SUCH AN INVESTIGATION TO BE NECESSARY OR
APPROPRIATE.

3.3           California
Disclosure Report. Seller acknowledges that the Disclosure Statutes (hereinafter
defined) provide that a seller of real property must make certain disclosures
regarding certain natural hazards potentially affecting the real property, as
more particularly provided therein. As used in this Agreement, “Disclosure
Statutes” means, collectively, California Government Code Sections 8589.3,
8589.4 and 51183.5, California Public Resources Code Sections 2621.9, 2694 and
4136 and any other California statutes that require Seller to make disclosures
concerning real property. Seller shall promptly order a Natural Hazard
Disclosure Report for the Project (the “Natural Hazard Report”) and shall
deliver the Natural Hazard Report to Purchaser promptly upon Seller’s receipt
thereof. The Natural Hazard

 5
 

Report shall be deemed part of the Due Diligence Materials. Purchaser
hereby agrees as follows with respect to the Disclosure Statutes and the
Natural Hazard Report: (i) the delivery of the Natural Hazard Report to
Purchaser as provided above shall be deemed to satisfy all obligations and
requirements of Seller under the Disclosure Statutes; (ii) Seller shall
not be liable for any error or inaccuracy in, or omission from, the information
in the Natural Hazard Report; (iii) the Natural Hazard Report is being
provided by Seller for purposes of complying with the Disclosure Statutes and
shall not be deemed to constitute a representation or warranty by Seller as to
the presence or absence in, at or around the Project of the conditions that are
the subject of the Disclosure Statutes.

3.4           Right of Termination.
If for any reason whatsoever in Purchaser’s sole and absolute discretion
Purchaser determines that the Property or any aspect thereof is unsuitable for
Purchaser’s acquisition, Purchaser shall have the right to terminate this
Agreement on or prior to the Approval Date. If this Agreement is terminated
pursuant to the foregoing provisions of this paragraph, then neither party
shall have any further rights or obligations hereunder (except for any
indemnity obligations of either party pursuant to this Agreement), the Deposit
shall be returned to Purchaser and each party shall bear its own costs incurred
hereunder. If Purchaser fails to give Seller a notice approving this Agreement
on or prior to the Approval Date, then Purchaser shall be deemed to have elected
to terminate this Agreement.

3.5           Tenancies. Seller
shall deliver the Property to Purchaser at the Closing free and clear of any
tenants or occupants of, or any rights or claims of occupancy to, the Property
and with all major items of personal property removed.

ARTICLE 4

CLOSING

4.1           Time and Place.

(a)           The consummation of the
transaction contemplated hereby (the “Closing”) shall be on the thirtieth
(30th) day after the Approval Date or such earlier date as mutually approved by
Seller and Purchaser (“Closing Date”).

(b)           If, for any reason the
Closing does not occur on or before the Closing Date, as such date may be
extended by, and only by, (i) mutual agreement of Purchaser or Seller, or (ii)
in accordance with Article 7 of this Agreement, the obligations of the parties
to buy and sell the Property shall terminate and each party shall have the
rights and remedies set forth herein.

(c)           Non-recorded documents
shall be deposited with Shartsis Friese LLP (“SF”), in escrow, and recorded
documents shall be delivered to the Title Company as provided in this Agreement.
At the Closing, Seller and Purchaser shall perform the obligations set forth
in, respectively, Section 4.2 and Section 4.3 hereof, the performance of which
obligations shall be concurrent conditions; provided that the Deed shall not be
recorded until Seller receives confirmation of the wire number of the wired
portion of the Purchase Price, adjusted by prorations as set forth herein.

4.2           Seller’s Deliveries.

(a)           Seller shall deliver to
Title Company the original Grant Deed in the form attached hereto as Exhibit
B (the “Deed”).

(b)           Seller shall deliver to
SF, in escrow, two duly executed counterpart originals of an assignment of
Seller’s interest in the Intangibles in the form attached hereto as Exhibit
C (the “Assignment of Intangibles”).

 6
 

(c)           Seller shall deliver to
SF, in escrow, one duly executed counterpart original of a Bill of Sale for the
Personal Property in the form attached hereto as Exhibit E.

(d)           Seller shall deliver to
SF, in escrow, one duly executed counterpart original of a certificate updating
Seller’s representations as of the Closing Date if there have been any changes
in the representations since the Effective Date.

(e)           Seller shall deliver to
Title Company such evidence as the Title Company may reasonably require as to
the authority of the person or persons executing documents on behalf of Seller.

(f)            Seller shall deliver
to Title Company a certificate stating that Seller is not a “foreign person” as
defined in the Federal Foreign Investment in Real Property Tax Act of 1980 and
a State of California Form 593-W (collectively, the “Non-Foreign Affidavits”).

(g)           Seller shall deliver to
Title Company a full release and reconveyance of all monetary encumbrances
affecting the Property which are not to be paid out of the proceeds of the
Closing (other than the lien of current, non-delinquent real property taxes and
assessments) and any mechanics’ liens, and such affidavits as may be
customarily and reasonably required by the Title Company, in a form reasonably
acceptable to Seller.

(h)           On or before the
Closing, Seller shall deliver to SF, in escrow, and/or Title Company as
applicable, a closing statement reasonably acceptable to Seller duly executed
by Seller. Purchaser and Seller shall cooperate in good faith with Title
Company to prepare the final closing statement.

(i)            On or before the
Closing, Seller shall deliver to SF, in escrow, and/or Title Company, as
applicable, such additional documents as shall be reasonably required to
consummate the transaction contemplated by this Agreement.

(j)            Upon the Closing,
Seller shall deliver to Purchaser possession and occupancy of the Property,
subject to the Permitted Exceptions and shall deliver to Purchaser the assigned
Intangibles.

4.3           Purchaser’s Deliveries.

(a)           At least one (1)
business day prior to the Closing, Purchaser shall wire transfer to Title
Company the full amount of the Purchase Price, increased or decreased by the
Deposit, prorations and adjustments as herein provided.

(b)           Purchaser shall deliver
to SF, in escrow, two (2) duly executed counterpart originals of the Assignment
of Intangibles.

(c)           Purchaser shall deliver
to SF, in escrow, one duly executed counterpart original of a certificate
updating Purchaser’s representations if there have been any changes in the
representations since the Effective Date.

(d)           Purchaser shall deliver
to Title Company such evidence as the Title Company may reasonably require as
to the authority of the person or persons executing documents on behalf of
Purchaser.

(e)           Purchaser shall deliver
to SF, in escrow, and/or Title Company, as applicable, a closing statement
reasonably acceptable to Purchaser duly executed by Purchaser.

 7
 

(f)            Purchaser shall
deliver to SF, in escrow and/or Title Company, as applicable, such additional
documents as shall be reasonably required to consummate the transaction
contemplated by this Agreement.

4.4           Credits, Prorations
and Closing Deliveries.

(a)           All income and expenses
of the Property shall be apportioned as of 12:01 a.m., on the day of Closing,
as if Purchaser were vested with title to the Property during the entire day
upon which Closing occurs. Such prorated items shall include without limitation
the following: (i) taxes and assessments levied against the Property;
(ii) utility charges for which Seller is liable, if any, such charges to
be apportioned at Closing on the basis of the most recent meter reading
occurring prior to Closing (dated not more than fifteen (15) days prior to
Closing) or, if unmetered, on the basis of a current bill for each such
utility; provided however, that Seller may pay such utility charges directly to
the utility provider; (iii) all amounts payable under assigned
Intangibles; and (iv) any other operating expenses or other items
pertaining to the Property which are customarily prorated between a purchaser
and a seller in the county in which the Property is located.

(b)           Notwithstanding
anything contained in Section 4.4(a) hereof, any taxes paid at or prior to
Closing shall be prorated based upon the amounts actually paid. If taxes and
assessments due and payable during the year of Closing have not been paid
before Closing, Seller shall be charged at Closing an amount equal to that
portion of such taxes and assessments which relates to the period before Closing
and Purchaser shall pay the taxes and assessments prior to their becoming
delinquent. Any such apportionment made with respect to a tax year for which
the tax rate or assessed valuation, or both, have not yet been fixed shall be
based upon the tax rate and/or assessed valuation last fixed. To the extent
that the actual taxes and assessments for the current year differ from the
amount apportioned at Closing, the parties shall make all necessary adjustments
by appropriate payments between themselves within thirty (30) days after such
amounts are determined following Closing.

(c)           Except as otherwise
provided herein, any revenue or expense amount which cannot be ascertained with
certainty as of Closing shall be prorated on the basis of the parties’
reasonable estimates of such amount, and shall be the subject of a final
proration ninety (90) days after Closing, or as soon thereafter as the precise
amounts can be ascertained. Upon the parties’ acceptance and approval of any
final proration statement, such statement shall be conclusively deemed to be
accurate and final. The obligations of the parties with respect to such
post-Closing reconciliations shall survive the Closing.

(d)           Upon the Closing, Title
Company shall record the Deed in the Official Records of the County of Alameda
with a conformed recorded copy to be delivered to Purchaser and Seller, fund
the balance of the Deposit and Purchase Price to Seller, less any of Seller’s
share of closing costs, as directed by Seller, deliver the originals of the
Non-Foreign Status Affidavit to Purchaser, and deliver the other instruments
and documents delivered through the Escrow to the applicable party.

4.5           Transaction Taxes
and Closing Costs.

(a)           Seller and Purchaser
shall execute such returns, questionnaires and other documents as shall be
required with regard to all applicable real property transaction taxes imposed
by applicable federal, state or local law or ordinance.

(b)           Seller shall pay the
fees of any counsel representing Seller in connection with this transaction. Seller
shall also pay the following costs and expenses: (i) all County of Alameda
documentary transfer taxes payable in connection with the recording of the
Deed, (ii) all City of San

 8
 

Leandro transfer taxes payable in connection with the recording of the
Deed and (iii) the premium of the Title Policy and the cost of the survey.

(c)           Purchaser shall pay the
fees of any counsel representing Purchaser in connection with this transaction.

(d)           All costs and expenses
incident to this transaction and the closing thereof not specifically described
above, shall be paid in accordance with the custom of Alameda County.

4.6           Conditions Precedent
to Obligation of Purchaser. The obligation of Purchaser to consummate the
transaction hereunder shall be subject to the fulfillment on or before the date
of Closing of all of the following conditions, any or all of which may be
waived by Purchaser in its sole discretion:

(a)           Seller shall have
delivered to SF, in escrow, or to Title Company all of the items required to be
delivered to Purchaser pursuant to the terms of this Agreement, including but
not limited to, those provided for in Section 4.2 hereof;

(b)           All of the
representations and warranties of Seller contained in this Agreement shall be
true and correct in all material respects as of the date of Closing (with
appropriate modifications permitted under this Agreement);

(c)           Seller shall have
performed and observed, in all material respects, all covenants and agreements
of this Agreement to be performed and observed by Seller as of the date of
Closing; and

(d)           Title Company (or
another nationally recognized title company) shall be unconditionally committed
to issue to Purchaser upon the Closing the Title Policy (subject to only the
Permitted Exceptions and with such endorsements as have been approved by
Purchaser) in the form of the pro-forma policy or title commitment as have been
agreed to by such Title Company and approved by Purchaser during the Title
Inspection Period (or with respect to Gap Title Defects only, thereafter), a
copy of which shall have been delivered to Seller.

4.7           Conditions Precedent
to Obligation of Seller. The obligation of Seller to consummate the
transaction hereunder shall be subject to the fulfillment on or before the date
of Closing of all of the following conditions, any or all of which may be
waived by Seller in its sole discretion:

(a)           Seller shall have
received confirmation of the wiring of the Purchase Price, as adjusted as
provided herein;

(b)           Purchaser shall have
delivered to SF, in escrow, or to Title Company all of the items required to be
delivered to Seller pursuant to the terms of this Agreement, including, but not
limited to, those provided for in Section 4.3 hereof;

(c)           All of the
representations and warranties of Purchaser contained in this Agreement shall
be true and correct in all material respects as of the date of Closing (with
appropriate modifications permitted under this Agreement); and

(d)           Purchaser shall have
performed and observed, in all material respects, all covenants and agreements
of this Agreement to be performed and observed by Purchaser as of the date of
Closing.

 9

ARTICLE 5

REPRESENTATIONS, WARRANTIES AND COVENANTS

5.1           Representations and
Warranties of Seller. Seller hereby makes the following representations and
warranties to Purchaser as of the Effective Date, which representations and
warranties shall be deemed to have been made again as of the Closing, subject
to Section 5.8 hereof:

(a)           Organization and
Authority. Seller has been duly organized and is validly existing under the
laws of the State of Delaware and is qualified to do business in the State of
California. Seller has the full right and authority to enter into this
Agreement and to transfer all of the Property and to consummate or cause to be
consummated the transaction contemplated by this Agreement. The person signing
this Agreement on behalf of Seller is authorized to do so. No consent of any
third party is required in order for Seller to perform any of its obligations
hereunder. This Agreement constitutes the valid and binding obligation of
Seller and is enforceable against Seller in accordance with its terms, subject
to bankruptcy, insolvency and similar laws affecting the enforcement of
creditors’ rights generally and general equitable principles.

(b)           Pending Actions.
There is no pending, and Seller has no knowledge of any threatened action,
suit, arbitration, government investigation or proceeding against Seller or any
portion of the Property which, if adversely determined, could materially
interfere with the consummation of the transaction contemplated by this
Agreement or constitute an encumbrance against the Property. Seller has not
received any notice of any pending or threatened proceeding for condemnation.

(c)           No Leases. There
are no leases, licenses, subleases or occupancy agreements affecting in any
manner any portion of the Property which will survive the Closing, and Seller
has no knowledge of any oral agreements with anyone, including tenants, with
respect to the occupancy of the Property, except as disclosed in writing to
Purchaser.

(d)           No Conflict. Neither
the execution and delivery of this Agreement by Seller, nor performance of any
of its obligations hereunder, conflicts with, or will result in a breach under,
(i) Seller’s organizational documents, (ii) any deed of trust, agreement,
undertaking, instrument or document to which Seller is a party or by which any
of Seller’s properties is bound, or (iii) any order or regulation of any court,
regulatory body, administrative agency or government body.

(e)           No Violations. Except
as otherwise provided in the Due Diligence Documents, to Seller’s knowledge, no
written notice has been given by any governmental entity of any current
violation of law, rule, regulation or codes that relates to the Property.

(f)            Title to Personal
Property and Intangibles. Seller owns and shall transfer to Purchaser good
and marketable title to the Personal Property and Intangibles, free and clear
of any liens or encumbrances whatsoever.

(g)           Diligence Materials.
Seller has or will deliver to Purchaser all the Due Diligence Materials in
Seller’s possession or under Seller’s control. To Seller’s knowledge the Due
Diligence Materials are true, accurate and complete copies of the documents
that they purport to be.

(h)           Not Foreign Person.
Seller is not a “foreign person” as defined in §1445 of the Internal Revenue
Code of 1986, as amended (the “Code”), or under any similar sections of any
similar laws of the State of California.

 10
 

(i)            Taxes. Except
for the amounts disclosed by the tax bills for all real property taxes and
personal property taxes, and notices for any assessments or bonds relating to
the Property provided by Seller to Purchaser, to Seller’s knowledge, no real
property taxes have been assessed against the Property for the current tax year
and no supplemental taxes or assessments will be levied against the Property,
resulting from work, activities or improvements done to the Property by Seller.

5.2           Knowledge Defined.
References to the “knowledge” of Seller shall refer only to the current actual
knowledge of David McDonald, whom Seller represents is the employee of Seller who
is most directly involved in the day to day oversight of the operations of the
Property.

5.3           Survival of Seller’s
Representations and Warranties. The representations and warranties of
Seller set forth in Section 5.1 hereof as updated as of the Closing in
accordance with the terms of this Agreement, shall not be deemed to be merged
into the instruments of Closing and survive Closing for a period of one year
after the date that Seller delivers possession of the Property to Purchaser. No
claim for a breach of any representation or warranty of Seller shall be
actionable or payable if the breach in question results from or is based on a
condition, state of facts or other matter which was known to Purchaser prior to
Closing. Seller shall have no liability to Purchaser for a breach of any
representation or warranty unless written notice containing a description of
the specific nature of such breach shall have been given by Purchaser to Seller
prior to the expiration of said one year period and an action shall have been
commenced by Purchaser against Seller within thirty (30) days following the
expiration of such one year period.

5.4           Covenants of Seller.
From and after the Effective Date, Seller shall operate and maintain the
Property in a manner consistent with past practice and shall maintain, or cause
to be maintained, all Seller’s insurance policies relating to the Property. Seller
shall not, on or after the Effective Date, without Purchaser’s prior written
consent, (a) enter into any contract, lease or other agreement affecting the
Property which would not be terminable at Closing, (b) amend, or grant any
material consent or approval under, any existing contract, or other agreement
affecting the Property which would not be terminable at Closing, or (c) create
or allow the creation of any new lien or encumbrance on the Property that by
its terms will not be terminable at the Closing.

5.5           Representations and
Warranties of Purchaser. Purchaser hereby makes the following
representations and warranties to Seller as of the Effective Date, which
representations and warranties shall be deemed to have been made again as of
the Closing, subject to Section 4.3(c) hereof:

(a)           Organization and
Authority. Purchaser has been duly organized and is validly existing under
the laws of the State of California and is qualified to do business in the
State of California. Purchaser has the full right and authority to enter into
this Agreement and to consummate or cause to be consummated the transaction
contemplated by this Agreement (subject to Purchaser’s performance and approval
of its due diligence inspections as set forth herein). The person signing this
Agreement on behalf of Purchaser is authorized to do so. This Agreement
constitutes the valid and binding obligation of Purchaser and is enforceable
against Purchaser in accordance with its terms, subject to bankruptcy,
insolvency and similar laws affecting the enforcement of creditors’ rights
generally and general equitable principles.

(b)           Pending Actions.
There is no pending action, suit, arbitration, government investigation or
proceeding against Purchaser or any portion of the Property which, if adversely
determined, could materially interfere with the consummation of the transaction
contemplated by this Agreement.

 11
 

(c)           No Conflict. Neither
the execution and delivery of this Agreement by Purchaser, nor performance of
any of its obligations hereunder, conflicts with, or will result in a breach
under, (i) Purchaser’s organizational documents, or (ii) any order or
regulation of any court, regulatory body, administrative agency or government
body.

5.6           Survival of
Purchaser’s Representations and Warranties. The representations and
warranties of Purchaser set forth in Section 5.4 hereof as updated as of the
Closing in accordance with the terms of this Agreement, shall survive Closing
for a period of one year. Purchaser shall have no liability to Seller for a
breach of any representation or warranty unless written notice containing a
description of the specific nature of such breach shall have been given by
Seller to Purchaser prior to the expiration of said one year period and an
action shall have been commenced by Seller against Purchaser within thirty (30)
days following the expiration of such one year period.

5.7           Notice of Changed
Circumstances. If either party becomes aware of any fact or circumstance
that would render any representation or warranty made by such party false or
misleading, then such party (the “Disclosing Party”) shall immediately deliver
to the other party a signed certificate identifying such representation and
warranty and explaining the relevant change in facts or circumstances. If the
Disclosing Party is Seller, Purchaser shall have the option to extend the
Closing for a period of thirty (30) days, at which time Purchaser shall have
the option to terminate the Agreement and recover the Deposit in full. If,
notwithstanding the facts or circumstances described in such certificate, the
Closing occurs, the Disclosing Party’s representations and warranties shall be
deemed to have been modified by the facts and circumstances disclosed in such
certificate, to the extent (but only to the extent) such facts and
circumstances (a) occurred after the Effective Date and (b) were beyond the
reasonable control of the Disclosing Party or expressly permitted by the terms
of this Agreement.

ARTICLE 6

DEFAULT

6.1           Events of Default.

(a)           The following shall
constitute a Default of Purchaser hereunder: (i) Purchaser defaults under
any provision of this Agreement providing for the payment of money and such
failure to pay continues for a period of five (5) days after receipt of notice
of nonpayment; provided however that payments due on the Closing Date shall not
be subject to notice or an opportunity to cure; (ii) Purchaser defaults
under any other provision of this Agreement and such default is not cured for a
period of ten (10) days after receipt of notice of such default; (iii) if
at any time prior to Closing (a) there shall be filed by Purchaser in any
court or with any governmental body pursuant to any statute either of the
United States or of any state, a petition in bankruptcy or insolvency or a
petition seeking to effect any plan or other arrangement with creditors or
seeking the appointment of a receiver; or (b) a receiver, conservator or liquidating
agent or similar person shall be appointed for all or a substantial portion of
Purchaser’s property; or (c) Purchaser shall give notice to any person or
governmental body of insolvency or suspension or pending suspension of its
operations; or (d) a material, adverse change occurs in the financial
condition of Purchaser or Purchaser shall make an assignment for the benefit of
creditors or take any other similar action for the protection or benefit of
creditors.

(b)           The following shall
constitute a Default of Seller hereunder: (i) Seller defaults under any
provision of this Agreement providing for the payment of money and such failure
to pay continues for a period of five (5) days after receipt of notice of
nonpayment; (ii) Seller defaults under any other provision of this Agreement
and such default is not cured for a period of ten (10) days after receipt of
notice of such default; (iii) if at any time prior to Closing (a) there shall
be filed by Seller in any court or with any governmental body pursuant to any
statute either of the United States or of any state, a 

 12
 

petition in bankruptcy or insolvency or a petition seeking to effect
any plan or other arrangement with creditors or seeking the appointment of a
receiver; or (b) a receiver, conservator or liquidating agent or similar person
shall be appointed for all or a substantial portion of Seller’s property; or
(c) Seller shall give notice to any person or governmental body of insolvency
or suspension or pending suspension of its operations; or (d) a material,
adverse change occurs in the financial condition of Seller or Seller shall make
an assignment for the benefit of creditors or take any other similar action for
the protection or benefit of creditors.

6.2           Default by Purchaser.
In the event Seller is not in Default hereunder and the sale of the Property as
contemplated hereunder is not consummated on or before the Closing Date due to
Purchaser’s Default hereunder (and not as a result of a failure of a condition
precedent hereunder which Purchaser could not control using commercially
reasonable efforts),and such Purchaser Default occurs after the Approval Date,
Seller shall be entitled, as its sole and exclusive remedy under this
Agreement, at law or in equity, to terminate this Agreement and receive the
Deposit as liquidated damages for the breach of this Agreement in accordance
with the provisions of Section 1.6 above, it being agreed between the parties
hereto that the actual damages to Seller in the event of such breach are
impractical to ascertain and the amount of the Deposit is a reasonable estimate
thereof.

6.3           Default by Seller.
In the event that Purchaser is not in Default hereunder and the sale of the
Property as contemplated hereunder is not consummated on or before such date
due to Seller’s Default hereunder (and not as a result of a failure of a
condition precedent hereunder which Seller could not control using commercially
reasonable efforts in which case Purchaser shall only be entitled to receive
the return of the Deposit, which return shall operate to terminate this
Agreement), if Purchaser does not waive such Default and Close, Purchaser shall
be entitled, as its sole and exclusive remedy under this Agreement, at law or
in equity, either (a) to receive the return of the Deposit (plus all accrued
interest thereon), which return shall operate to terminate this Agreement and
release Seller from any and all liability hereunder or (b) to enforce specific
performance of Seller’s obligation to convey the Property to Purchaser in
accordance with the terms of this Agreement. Purchaser shall be irrevocably
deemed to have elected to terminate this Agreement and receive back the Deposit
if Purchaser fails to file suit for specific performance against Seller in a
court having jurisdiction in the county and state in which the Property is
located, on or before sixty (60) days following the Closing Date.

6.4           Recoverable Damages.
In no event shall the provisions of this Article limit the damages recoverable
by either party against the other party due to the other party’s express
obligation to indemnify such party in accordance with this Agreement or the
exhibits.

ARTICLE 7

RISK OF LOSS

7.1           Damage. In the
event of loss or damage to the Property or any portion thereof which is not “Major”
(as hereinafter defined), this Agreement shall remain in full force and effect
provided that Seller shall, at Purchaser’s option, either (a) perform any
necessary repairs, or (b) assign to Purchaser all of Seller’s right, title and
interest in and to any claims and proceeds Seller may have with respect to any
casualty insurance policies or condemnation awards relating to the premises in
question. In the event that Seller elects to perform repairs upon the Property,
Seller shall use reasonable efforts to complete such repairs promptly and the
date of Closing shall be extended a reasonable time in order to allow for the
completion of such repairs. If a casualty claim is assigned to Purchaser, the
Purchase Price shall be reduced by an amount equal to the lesser of the
deductible damage amount under Seller’s insurance policy or the cost of such
repairs as determined in accordance with Section 7.3 hereof (provided that in
the event of uninsured damage, such reduction in the Purchase Price shall equal
the estimated cost of such repairs 

 13
 

necessary to the portion of the Property which is to be incorporated
into the development). Upon Closing, full risk of loss with respect to the
Property shall pass to Purchaser.

7.2           Major Damage. In
the event of a “Major” loss or damage, either Seller or Purchaser may terminate
this Agreement by written notice to the other party, in which event the Deposit
plus all interest thereon shall be returned to Purchaser. If neither Seller nor
Purchaser elects to terminate this Agreement within fifteen (15) days after
Seller sends Purchaser written notice of the occurrence of such Major loss or
damage (which notice shall state the cost of repair or restoration thereof as
opined by an architect in accordance with Section 7.3 hereof), then Seller and
Purchaser shall be deemed to have elected to proceed with Closing, in which
event Seller shall, at Seller’s option, either (a) perform any necessary
repairs, or (b) assign to Purchaser all of Seller’s right, title and interest
in and to any claims and proceeds Seller may have with respect to any casualty
insurance policies or condemnation awards relating to the premises in question.
In the event that Seller elects to perform repairs upon the Property, Seller
shall use reasonable efforts to complete such repairs promptly and the date of
Closing shall be extended a reasonable time in order to allow for the
completion of such repairs. If Seller elects to assign a casualty claim to
Purchaser, the Purchase Price shall be reduced by an amount equal to the lesser
of the deductible amount under Seller’s insurance policy or the cost of such
repairs as determined in accordance with Section 7.3 hereof (provided that in
the event of uninsured damage, such reduction in the Purchase Price shall equal
the estimated cost of such repairs). Upon Closing, full risk of loss with
respect to the Property shall pass to Purchaser.

7.3           Definition of “Major”
Loss or Damage. For purposes of Sections 7.1 and 7.2, “Major” loss or
damage refers to the following: any loss due to a casualty or condemnation that
is estimated to require repairs that will cost more than $400,000.00. The
determination of “Major” loss or damage shall be made by an architect mutually
reasonably approved by Purchaser and Seller.

ARTICLE 8

BROKERAGE COMMISSIONS

Upon closing, Seller shall pay the commission owing to
CBRE which acted as agent for Seller and Purchaser in this transaction pursuant
to a separate agreement between Seller and such entity. Each party hereto
agrees that if any other person or entity makes a claim for brokerage
commissions or finder’s fees related to the sale of the Property by Seller to
Purchaser, and such claim is made by, through or on account of any acts or
alleged acts of said party or its representatives, said party will protect,
indemnify, defend and hold the other party free and harmless from and against
any and all loss, liability, cost, damage and expense (including reasonable
attorneys’ fees) in connection therewith. The provisions of this paragraph
shall survive Closing or any termination of this Agreement.

ARTICLE 9

DISCLAIMERS AND WAIVERS

9.1           No Reliance on
Documents. Except as expressly stated in this Agreement, Seller makes no
representation or warranty as to the truth or accuracy of any materials, data
or information delivered by Seller or its brokers or agents to Purchaser in
connection with the transaction contemplated hereby. Except in the case of a
breach of any express representation, warranty and covenant of Seller as set
forth in this Agreement or in any of the documents to be executed and delivered
by Seller at Closing, neither Seller, nor any affiliate of Seller shall have
any liability to Purchaser for any inaccuracy in or omission from any
materials, data and information delivered by Seller to Purchaser in connection
with the transaction contemplated hereby. The provisions of this Article shall
survive Closing or any termination of this Agreement.

 14
 

9.2           AS-IS SALE;
DISCLAIMERS; RELEASE.

(a)           EXCEPT AS EXPRESSLY SET
FORTH IN THIS AGREEMENT AND/OR IN ANY OF THE DOCUMENTS TO BE EXECUTED AND
DELIVERED BY SELLER AT CLOSING, IT IS UNDERSTOOD AND AGREED THAT SELLER IS NOT
MAKING AND HAS NOT AT ANY TIME MADE ANY WARRANTIES OR REPRESENTATIONS OF ANY
KIND OR CHARACTER, EXPRESS OR IMPLIED, WITH RESPECT TO THE PROPERTY, INCLUDING,
BUT NOT LIMITED TO, ANY WARRANTIES OR REPRESENTATIONS AS TO HABITABILITY,
MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.

(b)           PURCHASER ACKNOWLEDGES
AND AGREES THAT UPON CLOSING SELLER SHALL SELL AND CONVEY TO PURCHASER AND
PURCHASER SHALL ACCEPT THE PROPERTY “AS IS, WHERE IS, WITH ALL FAULTS”, EXCEPT
TO THE EXTENT EXPRESSLY PROVIDED OTHERWISE IN THIS AGREEMENT AND/OR IN ANY OF
THE DOCUMENTS TO BE EXECUTED AND DELIVERED BY SELLER AT CLOSING. PURCHASER HAS
NOT RELIED AND WILL NOT RELY ON, AND SELLER IS NOT LIABLE FOR OR BOUND BY, ANY
EXPRESS OR IMPLIED WARRANTIES, GUARANTIES, STATEMENTS, REPRESENTATIONS OR
INFORMATION PERTAINING TO THE PROPERTY OR RELATING THERETO (INCLUDING
SPECIFICALLY, WITHOUT LIMITATION, OFFERING PACKAGES DISTRIBUTED WITH RESPECT TO
THE PROPERTY) MADE OR FURNISHED BY SELLER, THE MANAGERS OF THE PROPERTY, OR ANY
REAL ESTATE BROKER OR AGENT REPRESENTING OR PURPORTING TO REPRESENT SELLER, TO
WHOMEVER MADE OR GIVEN, DIRECTLY OR INDIRECTLY, ORALLY OR IN WRITING, UNLESS
SPECIFICALLY SET FORTH IN THIS AGREEMENT AND/OR IN ANY OF THE DOCUMENTS TO BE
EXECUTED AND DELIVERED BY SELLER AT CLOSING. PURCHASER ALSO ACKNOWLEDGES THAT
THE PURCHASE PRICE REFLECTS AND TAKES INTO ACCOUNT THAT THE PROPERTY IS BEING
SOLD “AS-IS”, SUBJECT TO THE EXPRESS REPRESENTATIONS, WARRANTIES AND COVENANTS
OF SELLER AS SET FORTH IN THIS AGREEMENT AND IN THE DOCUMENTS TO BE EXECUTED
AND DELIVERED BY SELLER AT CLOSING.

(c)           PURCHASER ACKNOWLEDGES
THAT THE IMPROVEMENTS MAY CONTAIN ASBESTOS CONTAINING MATERIALS (“ACM”) AND
THAT A RELEASE OF ACM MAY HAVE OCCURRED ON, AT, OR ABOUT THE PROPERTY. PURCHASER
SHALL CONDUCT ITS OWN INVESTIGATION WITH RESPECT TO SUCH ACM AND WAIVES,
RELINQUISHES AND RELEASES, SELLER FROM ANY AND ALL RIGHTS, CLAIMS AND CAUSES OF
ACTION WHICH PURCHASER MAY HAVE AGAINST SELLER WITH RESPECT TO ACM, INCLUDING
WITHOUT LIMITATION ANY AND ALL CAUSE OF ACTION UNDER OR WITH RESPECT TO
CALIFORNIA HEALTH & SAFETY CODE SECTION 25359.7(A) OR TITLE 42 OF THE
UNITED STATES CODE, SECTION 9601 ET SEQ., OR BOTH.

(d)           PURCHASER REPRESENTS TO
SELLER THAT PURCHASER HAS CONDUCTED, OR WILL CONDUCT PRIOR TO CLOSING, SUCH
INVESTIGATIONS OF THE PROPERTY, INCLUDING BUT NOT LIMITED TO, THE PHYSICAL AND
ENVIRONMENTAL CONDITIONS THEREOF, AS PURCHASER DEEMS NECESSARY OR DESIRABLE TO
SATISFY ITSELF AS TO THE CONDITION OF THE PROPERTY AND THE EXISTENCE OR
NONEXISTENCE OR CURATIVE ACTION TO BE TAKEN WITH RESPECT TO ANY HAZARDOUS OR
TOXIC SUBSTANCES ON OR DISCHARGED FROM THE PROPERTY, AND WILL RELY SOLELY UPON
SAME AND NOT UPON ANY INFORMATION PROVIDED BY OR ON BEHALF OF SELLER OR ITS
AGENTS OR EMPLOYEES WITH RESPECT THERETO, OTHER THAN SUCH REPRESENTATIONS,
WARRANTIES AND COVENANTS OF SELLER AS ARE 

 15
 

EXPRESSLY SET FORTH IN THIS AGREEMENT AND/OR IN ANY OF THE DOCUMENTS TO
BE EXECUTED AND DELIVERED BY SELLER AT CLOSING.

(e)           EXCEPT WITH RESPECT TO
(1) ANY BREACH OF ANY REPRESENTATION, WARRANTY AND/OR COVENANT OF SELLER
EXPRESSLY SET FORTH IN THIS AGREEMENT AND/OR IN ANY OF THE DOCUMENTS TO BE
EXECUTED AND DELIVERED BY SELLER AT CLOSING, OR (2) ANY THIRD PARTY CLAIM
TO THE EXTENT RELATING TO AN OCCURRENCE PRIOR TO THE CLOSING (OTHER THAN CLAIMS
FOR WHICH PURCHASER IS REQUIRED TO INDEMNIFY SELLER PURSUANT TO THIS
AGREEMENT), OR (3) ANY FRAUD BY SELLER: (A) UPON CLOSING, PURCHASER SHALL
ASSUME THE RISK THAT ADVERSE MATTERS, INCLUDING BUT NOT LIMITED TO,
CONSTRUCTION DEFECTS AND ADVERSE PHYSICAL AND ENVIRONMENTAL CONDITIONS, MAY NOT
HAVE BEEN REVEALED BY PURCHASER’S INVESTIGATIONS, AND (B) PURCHASER, UPON
CLOSING, SHALL BE DEEMED TO HAVE WAIVED, RELINQUISHED AND RELEASED SELLER (AND
SELLER’S OFFICERS, DIRECTORS, SHAREHOLDERS, EMPLOYEES AND AGENTS) FROM AND
AGAINST ANY AND ALL CLAIMS, DEMANDS, CAUSES OF ACTION (INCLUDING CAUSES OF
ACTION IN TORT), LOSSES, DAMAGES, LIABILITIES, COSTS AND EXPENSES (INCLUDING
REASONABLE ATTORNEYS’ FEES) OF ANY AND EVERY KIND OR CHARACTER, KNOWN OR
UNKNOWN, WHICH PURCHASER MIGHT HAVE ASSERTED OR ALLEGED AGAINST SELLER (AND
SELLER’S OFFICERS, DIRECTORS, SHAREHOLDERS, EMPLOYEES AND AGENTS) AT ANY TIME
BY REASON OF OR ARISING OUT OF ANY LATENT OR PATENT CONSTRUCTION DEFECTS OR
PHYSICAL CONDITIONS, VIOLATIONS OF ANY APPLICABLE LAWS AND ANY AND ALL OTHER
ACTS, OMISSIONS, EVENTS, CIRCUMSTANCES OR MATTERS REGARDING THE PROPERTY.

(f)            In the event the
Closing occurs, Purchaser shall indemnify, defend and hold harmless the Seller
from and against any and all suits, actions, proceedings, investigations,
demands, claims, liabilities, fines, penalties, liens, judgments, losses,
injuries, damages, expenses or costs whatsoever, including attorneys’ and
experts’ fees and costs and investigation and remediation costs, asserted by
the Purchaser or any assignee affiliated with Purchaser (as distinct from a
third party transferee which is not affiliated with Purchaser), or the
partners, members, trustees, shareholders, directors or officers of any party
owning a direct or indirect interest in Purchaser or any such affiliated
assignee possessing at any time an ownership interest (whether direct or
indirect) in the Property, arising from, relating to, or occasioned in any way
by the physical condition of the Property, including, but not limited to, the
presence of any hazardous materials on, in, under or about the Property, except
for any liability of Seller for any breach of any representation or warranty
set forth herein.

(g)           The release and
indemnification set forth herein includes claims, liabilities and other matters
of which Purchaser is presently unaware or which Purchaser does not presently
suspect to exist which, if known by Purchaser, may materially affect Purchaser’s
willingness to enter into the release and indemnification of the Seller. In
this connection and to the fullest extent permitted by law, except to the
extent of claims based on Seller’s fraud or intentional misrepresentation,
Purchaser hereby agrees, represents and warrants that Purchaser realizes and
acknowledges that factual matters now unknown to it may have given or may
hereafter give rise to causes of action, claims, demands, debts, controversies,
damages, costs, loses and expenses which are presently unknown, unanticipated
and unsuspected, and Purchaser further agrees, represents and warrants that the
release and indemnification set forth herein have been negotiated and agreed
upon in light of that realization and that Purchaser nevertheless hereby
intends to release, discharge and acquit the Seller from any such unknown
causes of action, claims, demands, debts, controversies, damages, costs, losses
and expenses, except for any liability of Seller for any breach of any
representation or warranty set forth herein, or for fraud which liability shall
survive the Closing only for the period set forth herein. In connection with
the releases set forth in this Section, 

 16
 

Purchaser expressly waives the benefits of Section 1542 of the
California Civil Code which provides as follows:

A general release does not extend to claims which the
creditor does not know or suspect to exist in his favor at the time of
executing the release, which if known by him must have materially affected his
settlement with the debtor.

(h)           The provisions of this Section shall survive the Closing.

ARTICLE
10

MISCELLANEOUS

10.1         Reporting.

(a)           It is expressly agreed
and understood that Seller shall have the right, in its sole and absolute
discretion, to file this Agreement and information about it with the Securities
and Exchange Commission, if Seller determines that such filing is necessary or
advisable under the Securities Exchange Act of 1934, as amended (“SEC Filings”).
Except as expressly permitted with respect to SEC Filings, prior to the
Closing, any release to the public of confidential information with respect to
the sale contemplated herein or any material terms set forth in this Agreement
will be made only in the form approved by Purchaser and Seller.

(b)           If the purchase and sale
of the Property pursuant hereto does not close for any reason, Purchaser shall
return to Seller all agreements (excluding this Agreement), documents, studies,
reports and other materials pertaining to the Property either delivered by
Seller or Seller’s agents to Purchaser pursuant hereto, or obtained by or on
behalf of Purchaser during Purchaser’s investigation of the Property; provided
that neither the fact that the purchase and sale do not close nor the
termination of this Agreement shall be regarded as confidential or subject to
this section.

10.2         Assignment.

(a)           Subject to
the provisions of this Section, the terms and provisions of this Agreement are
to apply to and bind the permitted successors and assigns of the parties hereto.
Purchaser may not assign its rights under this Agreement without first
obtaining Seller’s written approval, which approval may be given or withheld in
Seller’s sole discretion. Notwithstanding the foregoing, Purchaser may assign
its interest in this Agreement upon notice to Seller to any entity controlled
by Purchaser (“Permitted Assignee”) (for the purpose of this Agreement, control
shall mean an entity in which Purchaser or McGrath owns at least a fifty-one
percent (51%) interest or in which Purchaser or McGrath have at least a ten
percent (10%) interest and the right to direct and control the management and
operations of such entity). In the event Purchaser intends to assign its rights
hereunder including to a Permitted Assignee, (a) Purchaser shall send Seller
written notice of its request at least three (3) days prior to Closing, which
request shall include the legal name and structure of the proposed assignee,
and Purchaser shall also provide to Seller any other information respecting
such proposed assignee that Seller may reasonably request, (b) Purchaser and
the proposed assignee shall execute an assignment and assumption of this
Agreement in form and substance reasonably satisfactory to Seller, and (c) in
no event shall any assignment of this Agreement release or discharge Purchaser
from any liability or obligation hereunder.

10.3         Notices. Any
notice pursuant to this Agreement shall be given in writing by reputable
overnight delivery service with proof of delivery or personal delivery, and
shall be deemed to have been given upon receipt or refusal to accept delivery
sent to the intended addressee at the address set forth 

 17
 

below, or to such other address or to the attention of such other
person as the addressee shall have designated by written notice sent in
accordance herewith. Unless changed in accordance with the preceding sentence,
the addresses for notices given pursuant to this Agreement shall be as follows:

	
  

  	
  If to Seller:

  	
   

  	
  Simpson Manufacturing Co., Inc.

  
	
   

  	
   

  	
   

  	
  5956 West Las Positas Blvd.

  
	
   

  	
   

  	
   

  	
  Pleasanton, California 94588

  
	
   

  	
   

  	
   

  	
  Attention: Michael Herbert

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  with a copy to:

  	
   

  	
  Alan J. Robin, Esq.

  
	
   

  	
   

  	
   

  	
  Shartsis, Friese LLP

  
	
   

  	
   

  	
   

  	
  One Maritime Plaza, 18th Floor

  
	
   

  	
   

  	
   

  	
  San Francisco, California 94111

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  If to Purchaser:

  	
   

  	
  Oakland Land Company, LLC

  
	
   

  	
   

  	
   

  	
  130 Webster, Suite 200

  
	
   

  	
   

  	
   

  	
  Oakland, California 94607

  
	
   

  	
   

  	
   

  	
  Attention: Terrence M. McGrath

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  with a copy to:

  	
   

  	
  Daniel S. Krebs

  
	
   

  	
   

  	
   

  	
  Alliance Counsel LLP

  
	
   

  	
   

  	
   

  	
  80 E. Sir Francis Drake Blvd., Suite 1B

  
	
   

  	
   

  	
   

  	
  Larkspur, California 94939

  

 

10.4         Modifications. This
Agreement cannot be changed orally, and no agreement shall be effective to
waive, change, modify or discharge it in whole or in part unless such agreement
is in writing and is signed by the parties against whom enforcement of any such
change is sought.

10.5         Entire Agreement. This
Agreement, including the exhibits and schedules hereto, contains the entire
agreement between the parties hereto pertaining to the subject matter hereof
and fully supersedes all prior written or oral agreements and understandings
between the parties pertaining to such subject matter.

10.6         Further Assurances.
Each party agrees that it will execute and deliver such other documents and
take such other action, whether prior or subsequent to Closing, as may be
reasonably requested by the other party to consummate the transaction
contemplated by this Agreement. The provisions of this Section shall survive
Closing.

10.7         Counterparts. This
Agreement may be executed in counterparts, all such executed counterparts shall
constitute the same agreement, and the signature of any party to any
counterpart shall be deemed a signature to, and may be appended to, any other
counterpart.

10.8         Facsimile Signatures.
In order to expedite the transaction contemplated herein, telecopied signatures
may be used in place of original signatures on this Agreement. Seller and
Purchaser intend to be bound by the signatures on the telecopied document, are
aware that the other party will rely on the telecopied signatures, and hereby
waive any defenses to the enforcement of the terms of this Agreement based on
the form of signature.

10.9         Severability. If
any provision of this Agreement is determined by a court of competent
jurisdiction to be invalid or unenforceable, the remainder of this Agreement
shall nonetheless remain in 

 18
 

full force and effect; provided that the invalidity or unenforceability
of such provision does not materially adversely affect the benefits accruing to
any party hereunder.

10.10       Applicable Law. This
Agreement shall be governed by and construed in accordance with the laws of the
State California. Purchaser and Seller agree that the provisions of this
Section shall survive the Closing or any termination of this Agreement.

10.11       Attorneys’ Fees; Waiver
of Jury Trial.

(a)           In the event of any action or proceeding between Seller and Purchaser
to enforce any provision of this Agreement, the losing party shall pay to the
prevailing party all costs and expenses, including, without limitation,
reasonable attorneys’ fees and expenses, incurred in such action and in any
appeal in connection therewith by such prevailing party. The “prevailing party”
will be determined by the court before whom the action was brought based upon
an assessment of which party’s major arguments or positions taken in the suit
or proceeding could fairly be said to have prevailed over the other party’s
major arguments or positions on major disputed issues in the court’s decision.

(b)           TO THE FULLEST EXTENT
PERMITTED UNDER LAW, INCLUDING ANY LAWS ENACTED AFTER THE DATE OF THIS
AGREEMENT, PURCHASER AND SELLER EACH HEREBY WAIVES ANY RIGHT IT MAY HAVE TO A
JURY TRIAL IN THE EVENT OF LITIGATION BETWEEN THE PARTIES IN ANY ACTION OR
PROCEEDING OR COUNTERCLAIM BROUGHT BY ANY PARTY HERETO AGAINST THE OTHER ON ANY
MATTER WHATSOEVER ARISING OUT OF OR IN ANY WAY CONNECTED WITH THIS AGREEMENT,
LEASE, THE RELATIONSHIP OF THE PARTIES, THE PROPERTY, OR ANY CLAIM OF INJURY OR
DAMAGE, OR THE ENFORCEMENT OF ANY REMEDY UNDER ANY STATUTE, EMERGENCY OR
OTHERWISE, WHETHER ANY OF THE FOREGOING IS BASED ON THIS AGREEMENT OR ON TORT
LAW (“CLAIM”). PURCHASER AND SELLER AGREE THAT THIS PARAGRAPH CONSTITUTES A
WRITTEN CONSENT TO WAIVER OF TRIAL BY JURY WITHIN THE MEANING OF CALIFORNIA
CODE OF CIVIL PROCEDURE SECTION 631(A)(2), AND EACH PARTY DOES HEREBY AUTHORIZE
AND EMPOWER THE OTHER PARTY TO FILE THIS PARAGRAPH AND OR THIS AGREEMENT, AS
REQUIRED, WITH THE CLERK OR JUDGE OF ANY COURT OF COMPETENT JURISDICTION AS A
WRITTEN CONSENT TO WAIVER OF JURY TRIAL. THE PROVISIONS OF THIS SECTION SHALL
SURVIVE THE EXPIRATION OR EARLIER TERMINATION OF THIS AGREEMENT.

10.12       No Third-Party
Beneficiary. The provisions of this Agreement and of the documents to be
executed and delivered at Closing are and will be for the benefit of Seller and
Purchaser only and are not for the benefit of any third party, and accordingly,
no third party shall have the right to enforce the provisions of this Agreement
or of the documents to be executed and delivered at Closing.

10.13       Captions. The
section headings appearing in this Agreement are for convenience of reference
only and are not intended to limit or define the text of any section or any
subsection hereof.

10.14       Recordation. This
Agreement may not be recorded by any party hereto without the prior written
consent of the other party hereto.

10.15       1031 Exchange
Cooperation.

(a)           On condition that
Purchaser receives written notice of its election to participate in a tax free
exchange under §1031 of the Code at least ten (10) business days prior to the
Closing Date, Purchaser agrees to reasonably cooperate with Seller’s efforts to
integrate the transactions contemplated hereunder into a tax-deferred exchange
under Section 1031 of the Code; provided, however, that in no event shall (a)
Purchaser incur any additional cost, obligation or liability by reason of such exchange
(including, without limitation, any responsibility or liability of any kind for
the failure of such exchange 

 19
 

to be consummated or to qualify for tax-deferred status under any
federal or State law or rule and any damage calculated or related in any
fashion to Seller’s lost tax benefits) or be required to hold title to any
property, (b) the Closing be delayed, or (c) Seller be relieved of any of its
agreements, or other obligations under this Agreement. Purchaser shall execute
all amendments to this Agreement, escrow instructions pertaining to the
exchange transaction and all other documents as may be necessary to carry out
such an exchange, subject to the qualifications set forth above; provided
however that Purchaser shall have the right to approve any and all such
documents (which approval shall not be unreasonably withheld).

(b)           On condition that
Seller receives written notice of its election to participate in a tax free
exchange under §1031 of the Code at least ten (10) business days prior to the
Closing Date, Seller agrees to reasonably cooperate with Purchaser’s efforts to
integrate the transactions contemplated hereunder into a tax-deferred exchange
under Section 1031 of the Code; provided, however, that in no event shall (a)
Seller incur any additional cost, obligation or liability by reason of such
exchange (including, without limitation, any responsibility or liability of any
kind for the failure of such exchange to be consummated or to qualify for
tax-deferred status under any federal or State law or rule and any damage
calculated or related in any fashion to Purchaser’s lost tax benefits) or be
required to hold title to any property, (b) the Closing be delayed, or (c)
Purchaser be relieved of any of its agreements, or other obligations under this
Agreement. Seller shall execute all amendments to this Agreement, escrow
instructions pertaining to the exchange transaction and all other documents as
may be necessary to carry out such an exchange, subject to the qualifications
set forth above; provided however that Seller shall have the right to approve
any and all such documents (which approval shall not be unreasonably withheld).

10.16       Time for Performance.
Time is of the essence of this Agreement. As used in this Agreement, a “business
day” shall mean a day that is not a Saturday, Sunday or recognized federal or
state holiday. If the last date for performance by either party under this
Agreement occurs on a day that is not a business day, then the last date for
such performance shall be extended to the next occurring business day.

 20
 

IN WITNESS WHEREOF, the parties hereto have duly
executed this Agreement as of the Effective Date.

	
   

  	
  SELLER:

  	
  SIMPSON MANUFACTURING CO. INC.,

  
	
   

  	
  a Delaware corporation

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael J. Herbert

  	
   

  	
  June 12, 2007

  
	
   

  	
  Name: 

  	
  Michael J. Herbert

  
	
   

  	
  Title: 

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  PURCHASER:

  	
   

  	
   

  	
   

  
	
   

  	
  Oakland Land Company, LLC,

  
	
   

  	
  a California limited liability company

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Terrence M. McGrath

  
	
   

  	
  Name: 

  	
  Terrence M. McGrath

  
	
   

  	
  Title: 

  	
  Managing Member

  
											

 

Title Company executes
this Agreement below solely for the purpose of acknowledging that it agrees to
be bound by the provisions of this Agreement relating to performance by the
Title Company.

	
   

  	
  TITLE COMPANY:

  	
   

  	
  FIRST AMERICAN TITLE INSURANCE 

  
	
   

  	
   

  	
  COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  

 

 21

EXHIBIT A

DESCRIPTION OF REAL
PROPERTY

 A-1

EXHIBIT B

FORM OF DEED

RECORDING REQUESTED BY AND

WHEN RECORDED MAIL TO AND

MAIL TAX STATEMENTS TO:

	
   

  	
   

  
	
   

  	
   

  
	
  Attention:

  
	
   

  
	
  (space above line for
  Recorder’s use only)

  

 

GRANT DEED

THE UNDERSIGNED GRANTOR DECLARES AS FOLLOWS:

Documentary Transfer Tax is not shown pursuant to
Section 11932 of the California Revenue and Taxation Code, as amended.

FOR VALUE RECEIVED,
SIMPSON MANUFACTURING CO. INC.,                                                                                   
a Delaware corporation, grants to                                                
(“Grantee”), all that certain real property (the “Property”) situated in the
City of San Leandro, County of Alameda, State of California, described on
Exhibit A attached hereto and by this reference incorporated herein.

THE PROPERTY IS CONVEYED TO GRANTEE SUBJECT TO:

(a)           All liens,
encumbrances, easements, covenants, conditions and restrictions of record,
including any matters shown on any subdivision or parcel map affecting the
Property; (b) All exceptions appearing in the policy of title insurance
for the Property issued to the Grantee as of the date hereof; (c) All matters
which would be revealed or disclosed in an accurate survey; and (d) A lien not
yet delinquent for taxes for real property, and any general or special
assessments against the Property.

IN WITNESS WHEREOF, the undersigned has executed this
Grant Deed dated as of                            ,
2007.

	
  

  	
  SIMPSON MANUFACTURING CO. INC.,

  
	
   

  	
  a Delaware corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name: 

  	
   

  	
   

  
	
   

  	
  Its:

  	
   

  	
   

  

 

[Attach acknowledgements
and legal description]

 B-1

EXHIBIT C

ASSIGNMENT AND ASSUMPTION
OF INTANGIBLES

THIS ASSIGNMENT AND ASSUMPTION OF INTANGIBLES (the “Assignment”)
is made as of the                                 
day of                                    ,
2007, between SIMPSON MANUFACTURING CO., INC., a Delaware corporation (“Assignor”)
                                                        
(“Assignee”).

Assignor is the owner of that certain real property
located in the City of San Leandro, State of California, more particularly
described in Exhibit A attached hereto (the “Property”). Assignor hereby
assigns, transfers, sets over and conveys to Assignee all of Assignor’s right,
title and interest, to the extent assignable, in, to and under any and all of
the following, to wit: all existing permits, licenses, approvals and
authorizations issued by any governmental authority in connection with the
Property (“Intangibles”).

Assignee does hereby assume and agree to perform all
of Assignor’s obligations under the Intangibles accruing with respect to the period
from and after the date hereof. Assignee agrees to indemnify, protect, defend
and hold Assignor harmless from and against any and all liabilities, losses,
costs, damages and expenses (including reasonable attorneys’ fees) directly or
indirectly arising out of or related to any breach or default in Assignee’s
obligations hereunder.

Assignor shall remain liable for all of Assignor’s
obligations under the Intangibles accruing with respect to the period prior to
the date hereof. Assignor agrees to indemnify, protect, defend and hold
Assignee harmless from and against any and all liabilities, losses, costs,
damages and expenses (including reasonable attorneys’ fees) directly or
indirectly arising out of or related to any breach or default in Assignor’s
obligations hereunder.

In the event of any action or proceeding between
Assignor and Assignee to enforce any provision of this Assignment, the losing
party shall pay to the prevailing party all costs and expenses, including,
without limitation, reasonable attorneys’ fees and expenses, incurred in such
action and in any appeal in connection therewith by such prevailing party. The “prevailing
party” will be determined by the court before whom the action was brought based
upon an assessment of which party’s major arguments or positions taken in the
suit or proceeding could fairly be said to have prevailed over the other party’s
major arguments or positions on major disputed issues in the court’s decision.

This Assignment may be executed in counterparts, all
such executed counterparts shall constitute the same agreement, and the
signature of any party to any counterpart shall be deemed a signature to, and
may be appended to, any other counterpart. In order to expedite the transaction
contemplated herein, telecopied signatures may be used in place of original
signatures on this Assignment. Assignor and Assignee intend to be bound by the
signatures on the telecopied document, are aware that the other party will rely
on the telecopied signatures, and hereby waive any defenses to the enforcement
of the terms of this Assignment based on the form of signature.

This Assignment shall be binding upon and inure to the
benefit of Assignor and Assignee and their respective heirs, executors,
administrators, successors and assigns.

 C-1
 

IN WITNESS WHEREOF, Assignor and Assignee have each
executed this Assignment as of the date first written above.

	
   

  	
  ASSIGNOR:

  	
  SIMPSON MANUFACTURING CO., INC.,

  
	
   

  	
  a Delaware corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ASSIGNEE:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  

 

[Attach legal description—Exhibit
A]

 C-2

EXHIBIT D

INVASIVE TESTING
REQUIREMENTS

1.             License
and Term of License.

A.            Seller hereby grants
to Purchaser and its employees, agents, contractors and consultants
(collectively, “Purchaser’s Consultants”), a license to enter upon, in and
below the surface of the Property at reasonable times (the “License”) for the
purpose of performing certain environmental and other inspections on or
concerning the Property, which inspections may include: (i) research regarding
the Property and surrounding parcels as is generally conducted in a Level I or
Phase I environmental audit, surveying the Property, and conducting other
inspections of the Property approved by Seller (the “Level One Investigation”);
and (ii) such other invasive investigations and tests of the Property as
may be reasonably approved by Seller, including the drilling of borings
(including soil and gas samplings and indoor air samplings) to ascertain the
level of hazardous materials (“Level Two Investigation”). The Level One
Investigation and Level Two Investigation shall be sometimes collectively
referred to herein as the “Investigation,” which Investigation and all related
activities or events shall be limited and conducted as herein required, all at
Purchaser’s sole cost and expense.

B.            Whenever Seller’s or
Purchaser’s consent or approval is required pursuant to any provision of this
License, such consent must be in writing and shall not be unreasonably
withheld, conditioned or delayed and shall be given or denied with the reasons
therefore within four (4) business days of request provided that the Due
Diligence Period shall be extended one day for each day after such four (4)
business day period that Seller has not responded.

C.            The term of the
License shall terminate on termination of the Agreement.

D.            Purchaser shall obtain
at its sole cost and expense all governmental permits and authorizations
required by any governmental agencies for the Investigation. Purchaser shall
comply with, and shall cause all of Purchaser’s Consultants to comply with, all
applicable governmental laws, regulations and requirements in connection with
the Investigation. Notwithstanding the foregoing, neither Purchaser nor
Purchaser’s Consultants shall, with respect to any environmental matters
relating to the Property, deliver documents to or otherwise provide information
to any governmental entity or agency without first consulting with Seller
regarding such requirement, except as may be required by court order or
governmental subpoena.

E.             In the event that
this Agreement is terminated, the contract with Purchaser’s Consultant shall,
at Seller’s request and option and at Seller’s cost, be assigned to Seller.

2.             Investigation:
Delivery of Plans and Specifications.

Prior to commencement of
any Level Two Investigation, Purchaser shall provide Seller, its environmental
and other engineers and consultants (collectively, “Seller’s Consultants”) with
a complete set of plans, drawings and specifications (the “Plans”) that define
the work to be performed on the Property pursuant to the Level Two
Investigation. Purchaser shall not commence any Level Two Investigation unless
Seller has approved the Plans, as modified, in writing. All work shall be done
in accordance with the approved Plans and no change or modification shall be
permitted without the prior written consent of Seller.

 D-1
 

3.             Investigation:
Diligent Prosecution of Work and Cooperation with Seller.

A.            The Investigation
shall be diligently performed and prosecuted to completion in a manner that
will not materially interfere with the operation or use of the Property.

B.            Neither Purchaser nor
Purchaser’s Consultants shall enter the Property without providing reasonable
prior notice to Seller. Seller shall have the right at Seller’s cost to be
present during any part or all of the Investigation.

4.             Investigation:
Removal of Equipment and Restoration of Property.

At such time as the
Investigation or any portion thereof is completed, or any equipment or
materials are no longer required to continue the Investigation, Purchaser
shall, at Purchaser’s sole cost and expense, remove any and all equipment and
materials used in conducting the Investigation and upon completion of the
Investigation shall restore the Property to the condition existing prior to the
Investigation. Purchaser shall dispose of all soil, gas, and groundwater
samples obtained at, from or about the Property in compliance with law.

5.             Standard
of Work Performed.

Purchaser agrees that the
methods of performing the Investigation will conform to the highest standards
of environmental and other appropriate consultants as applied by a firm of
environmental or other appropriate consultants of national reputation
specializing in work of the type involved in the area in which the Property is
located and will comply with all federal, state and local laws, rules and
regulations, and all other applicable requirements of any governmental agencies
having jurisdiction over such matters. Additionally, where customary and
appropriate, all soils, soil gas and water testing pursuant to the Investigation
shall be performed by a laboratory approved by the Environmental Protection
Agency and/or certified by the State of California. Purchaser shall provide
Seller with a copy of all reports prepared in connection with Purchaser’s Phase
II investigation including, without limitation, the results of all testings. If
the Agreement is terminated, upon request, Purchaser will provide Seller with a
copy of any other reports obtained in connection with the Property.

6.             Liens.

Purchaser shall keep the
Property free and clear of all mechanics’, materialmen’s and other liens
resulting from the Investigation or any of its other work under this License.

7.             Revocation of
License.

The License shall be
revocable in whole or in part by Seller immediately upon termination of the
Agreement or upon notice from Seller to Purchaser that Purchaser has failed to
comply with any provision of this License or the Agreement if Purchaser has not
cured such failure within five (5) days following written notice.

8.             Indemnity.

To the extent permitted
by law, except as provided below Purchaser shall protect, defend, indemnify and
hold harmless Seller and Seller’s Consultants, and any employee or agent of
Seller or Seller’s Consultants and each of them, against and from any and all
claims, demands, causes of action, damages, costs, expenses, losses and
liabilities, at law or in equity, of every kind or nature whatsoever, arising
out of or related to the Investigation (other than discovery of existing
conditions), Purchaser’s 

 D-2
 

breach of this License or any negligent or tortious
acts by Purchaser or Purchaser’s Consultants. The foregoing obligation shall
not cover any claims, demands, causes of action, damages, costs, expenses,
losses and liabilities, at law or in equity, which are attributable to, to the
extent so attributable to (i) pre-existing adverse conditions affecting
the Property, (ii) Seller’s or any of its employee’s, agent’s, consultant’s,
invitee’s or tenant’s conduct, or (iii) Purchaser’s discovery of any
information potentially having a negative impact on the Property.

9.             Insurance.

Purchaser agrees to
purchase at its own expense and to keep in force during the term of any entry
upon the Property pursuant hereto commercial general liability insurance,
including public liability and property damage insurance in the amount of at
least One Million Dollars ($1,000,000), combined single limit for personal
injuries or death of persons or property damage occurring in or about the
Property.

10.           No
Presumption of Approval.

Nothing in this
Agreement shall be deemed to create any duty by Seller or Seller’s Consultants,
or their respective officers, employees or agents, arising from their review
and/or approval of Purchaser’s plans, drawings, specifications, or from their
physical inspection of the Investigation. Neither the review and approval by
Seller or its agents of Purchaser’s plans, drawings and specifications nor
physical inspection by Seller or its agents of the Investigation or any other
work done under this Agreement shall be deemed a waiver of any rights Seller
may have under this License or the Agreement.

 D-3

EXHIBIT E

BILL OF SALE

FOR VALUABLE CONSIDERATION, the receipt and
sufficiency of which are hereby acknowledged, SIMPSON MANUFACTURING CO., INC.,
a Delaware corporation (the “Seller”) does hereby sell and convey to                                            
(the “Purchaser”) any and all of Seller’s right, title and interest in and to
all tangible personal property located upon the land described in Exhibit “A”
attached hereto and hereby made a part hereof (the “Land”) or within the
improvements located thereon, including, without limitation, any and all
appliances, furniture, tools and supplies, and other items of personal property
owned by Seller (excluding cash and any software), used exclusively in the
operation of the Land and improvements, as is, where is, and, except as
expressly set forth in the Agreement, without warranty of title or use, and
without warranty, express or implied, of merchantability or fitness for a
particular purpose.

TO HAVE AND TO HOLD all of said
personal property unto Purchaser, its successors and assigns, to its own use
forever.

IN
WITNESS WHEREOF, Seller has executed this Bill of Sale as of the          
day of                            ,
2007.

SIMPSON MANUFACTURING CO., INC.,

a
Delaware corporation

By:

Name:

Title:

[Attach legal
description]

 E-1

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