Document:

Exhibit

Exhibit 10.8
PURCHASE AND SALE AGREEMENT 

THIS PURCHASE AND SALE AGREEMENT is made as of the 4th day of June, 2018, by and between Pescadero Land Holdings, LLC, a Delaware limited liability company ("Seller"), and BCI IV Pescadero DC LP, a Delaware limited partnership ("Purchaser").

W I T N E S S E T H:

WHEREAS, Seller owns the industrial building known as "Tracy Pescadero Distribution Center" and located at 1700 E. Pescadero Avenue in Tracy, California; and

WHEREAS, Seller desires to sell its interest in such property and Purchaser desires to purchase such interest from Seller on the terms and conditions set forth below;

NOW THEREFORE, in consideration of the premises and the respective undertakings of the parties hereinafter set forth, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, it is hereby agreed:

SECTION 1.  DEFINITIONS.

Wherever used in this Agreement, the words and phrases set forth below shall have the meanings set forth below or in an Exhibit to this Agreement to which reference is made, unless the context clearly requires otherwise.  

A.    "Broker" shall mean CBRE, Inc.

B.    "Closing" means the closing at which Seller conveys title to the Project to Purchaser and Purchaser pays Seller the purchase price described in Section 2 herein below. 

C.    "Closing Date" means the date which is ten (10) days after the Due Diligence Deadline, or such other date as shall otherwise be agreed upon by the parties for the Closing; provided, however, Seller may extend the Closing Date by up to ten (10) business days in order to satisfy the tenant estoppel requirement set forth in Section 7(F) below and may extend the Closing Date as provided in Section 7(H) below so long as (i) if Seller extends the Closing Date as provided above, Purchaser is always provided with at least two (2) business days to close after the foregoing conditions are satisfied; and (ii) the Closing Date is in no event later than June 29, 2018.

D.    "Contracts" shall have the meaning set forth in Section 3(D) below.

E.    "DIA Credit" has the meaning set forth in Section 8(D)(7) below.

F.    "Due Diligence Deadline" means 5:00 p.m. Pacific Time on the date one (1) business day following the mutual execution of this Agreement.

G.    "Earnest Money" shall have the meaning set forth in Section 2(A) below.

H.    "Excess TI Cost Reimbursement" shall have the meaning set forth in Section 2(D) below.

I.    "Improvements" means all buildings, structures, fixtures and other improvements now or hereafter located or erected on the Land (other than any trade fixtures owned by tenants).

	
			
	 
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J.    "Land" means the real property described on Exhibit A, including all adjacent roadways, rights-of-way and alleys to the extent Seller has an interest therein, all oil, gas and other mineral rights and all easements and other rights appurtenant to such real property.
 
K.    "Outstanding TI Work" shall have the meaning set forth in Section 2(C) below.

L.    "Permitted Exceptions" means non-delinquent real property taxes on the Project, the rights of tenants, as tenants only, under the Tenant Leases and any other matters set forth on the Title Commitment and Survey (both as defined in Section 7(A) below), which are approved or deemed approved by Purchaser as provided in Paragraph 7(A) below.  

M.    "Purchase Price" shall have the meaning set forth in Section 2(B) below.

N.    "Personal Property" means all tangible and intangible personal property now or hereafter owned by Seller and used in connection with the operation of the Project, including, without limitation, (i) all building and construction materials, equipment, appliances, fixtures and machinery, (ii) all transferable permits, licenses, certificates, approvals and other entitlements issued in connection with the Project, (iii) all plans and specifications, operating manuals, guaranties and warranties with respect to the Project, and (iv) Seller's rights, if any, to use the trade name of the Project.

O.    "Project" means collectively the Land, the Improvements, the Personal Property, the Tenant Leases and Seller's interest in the Contracts that are assigned to Purchaser pursuant to the terms of this Agreement. 

P.    "Survey" shall have the meaning set forth in Section 7(A) below.

Q.    "Tenant Leases" shall have the meaning set forth in Section 3(E) below.

R.    "TI Work Holdback" shall have the meaning set forth in Section 2(C) below.

S.    "Title Commitment" shall have the meaning set forth in Section 7(A) below.

T.    "Title Company" means First American Title Insurance Company, 1125 17th Street, Suite 500, Denver, CO 80202, Attn: Karen Biggs.

SECTION 2.  EARNEST MONEY; AGREEMENT TO SELL AND PURCHASE.

A.    Earnest Money.

Within two (2) business days following the mutual execution of this Agreement, Purchaser shall deposit $1,375,000 (the "Earnest Money") with the Title Company; and, if Purchaser fails to deposit the Earnest Money with the Title Company when due hereunder, this Agreement shall be null and void.  The Earnest Money shall be held by the Title Company in accordance with the terms hereof and invested in a money market account, and all interest earned on the Earnest Money shall be added to and deemed a part of the Earnest Money.  A portion of the Earnest Money in the amount of $350,000 (the "Initial Non-Refundable Amount") shall be non-refundable upon deposit with the Title Company and payable to Seller if this Agreement is terminated for any reason except in the event Purchaser terminates this Agreement (i) as a result of Seller's default hereunder, or (ii) as follows:  (a) in accordance with Section 7(A) below as a result of Purchaser's objection to a title issue set forth in the Title Commitment (defined below) that would have a material adverse impact on the value, ownership, use, leasing, marketability or financeability of the Property as determined by Purchaser in its commercially reasonable discretion; (b) in accordance with Section 7(B) below as a result of Purchaser's objection to a material environmental condition at the Project, which Seller is unwilling or unable to cure prior to Closing in a manner 

	
			
	 
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acceptable to Purchaser in its commercially reasonable discretion; (c) in accordance with Section 7(D) as a result of a casualty to the Project or portion thereof; (d) in accordance with Section 7(E) as a result of a condemnation proceeding which would result in the taking of the Project or any portion thereof; or (e) in accordance with Section 7(F) as a result of the failure to provide the "Required Pactra Estoppel".  Except as provided above, the balance of the Earnest Money (excluding the Initial Non-Refundable Amount) shall be refunded to Purchaser if this Agreement is terminated prior to the expiration of the Due Diligence Deadline.  If the Closing does not occur hereunder for any reason other than Purchaser's default hereunder, the balance of the Earnest Money shall be refunded to Purchaser (provided that if the Closing does not occur due to Seller's default, the entire Earnest Money shall be refunded to Purchaser); and, if the Closing does not occur due to Purchaser's default hereunder, the Earnest Money shall be paid to Seller as liquidated damages in accordance with the terms of this Agreement.  If the Closing occurs hereunder, the Earnest Money shall be paid to Seller and credited against the Purchase Price.  

B.    Purchase and Sale.

On the Closing Date Seller shall convey the Project to Purchaser on the terms and conditions set forth herein.  On the Closing Date Purchaser shall accept title to the Project from Seller on the terms and conditions set forth herein and shall pay to Seller the purchase price ("Purchase Price") of FORTY-FIVE MILLION SEVEN HUNDRED FIFTY THOUSAND AND 00/100 DOLLARS ($45,750,000.00), subject to prorations and the "DIA Credit" as set forth below, by wire transfer of immediately available funds.

		
	C.
	Outstanding TI Work

A portion of the Purchase Price in the amount of One Hundred Thirty-Five Thousand Four Hundred Seventy-Three and 00/100 Dollars ($135,473.00) ("TI Work Holdback") (subject to verification by Purchaser prior to the expiration of the Due Diligence Deadline) will be placed in a joint order escrow with the Title Company at Closing to insure completion by Seller of the outstanding tenant improvement work described in Exhibit D-3 attached hereto, which needs to be completed under the Tenant Lease with DHL (the "Outstanding TI Work").  Seller will complete the Outstanding TI Work as soon as reasonably possible (but in no event later than ninety (90) days following the Closing Date, subject to delays caused by force majeure events), and the TI Work Holdback shall be released to Seller upon Seller's delivery to Purchaser of all of the following: (1) the City of Tracy's signed "Final Permit Card(s)" and a Certificate of Occupancy from the City of Tracy for the DHL premises (Unit 102), (2) DHL's written acceptance of the Outstanding TI Work as provided in its Tenant Estoppel Certificate (defined below) (or if not confirmed in the Tenant Estoppel Certificate, in such other form as is reasonably acceptable to Purchaser) and (3) the Architect of Record (HPA)'s written confirmation (by email or otherwise) or Certificate of Substantial Completion confirming that the Outstanding TI Work has been completed.  

		
	D.
	Excess TI Cost Reimbursement

As of the Closing Date, Seller will be due an "Excess TI Cost Reimbursement" from DHL (including with respect to the Outstanding TI Work) pursuant to the terms of its Tenant Lease.  DHL's remaining Excess TI Cost Reimbursement is estimated to be One Hundred Eleven Thousand Eight Hundred Forty-Three and 23/100 dollars ($111,843.23) as of the date hereof pursuant to the DHL Tenant Improvement Project Cost, dated May 19, 2018, attached hereto as Exhibit K. Such amount shall be updated five (5) days prior to the Close Date; and Seller shall use reasonable efforts to have DHL acknowledged such Excess TI Cost Reimbursement in writing, either in the Tenant Estoppel Certificate or otherwise.  PACTRA has paid its Excess TI Reimbursement in full. Purchaser has no claim as to any Excess TI Cost Reimbursement from either DHL or PACTRA, and Seller reserves its rights to such Excess TI Cost Reimbursements.  Seller will have the right to collect the Excess TI Cost Reimbursement from DHL after Closing to the extent the Excess TI Cost Reimbursement from DHL has not been paid as of the Closing Date; provided that in no event shall Seller be permitted to take any action to dispossess a Tenant of possession. 

	
			
	 
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E.   DIA Escrow

One Hundred Sixty-Four Thousand One Hundred Sixty-Nine Dollars ($164,169.00) (the "DIA Escrow") of the Purchase Price will be deposited into a joint order escrow with the Title Company at Closing.  These funds are comprised of $21,850 for the estimated current cost to complete the Emergency Vehicle Access (EVA) improvements and the amount of $142,319 for the estimated current cost to complete the Bio-Retention Basin improvements pursuant to the letter from Kier & Wright Civil Engineers & Surveyors, Inc ("K&W"), dated April 20, 2018, a copy of which is attached hereto as Exhibit J.  The $164,169 is K&W's estimate of the work required under the DIA.  Purchaser acknowledges, however, that the actual cost of the work may vary; and Seller does not represent or warrant that this estimate will be the final cost of the work.   The DIA Escrow will be deemed to have completely satisfied Seller's obligations under the DIA, and Purchaser shall be responsible for all of Seller's obligations under the DIA from and after the Closing.  The DIA Escrow shall be immediately released to Purchaser when Purchaser has replaced the Landscape Bond and DIA Bond as described in Section 8(C)(2)(f) below.  

		
	F.
	Independent Contract Consideration.

A portion of the Earnest Money equal to ONE HUNDRED AND N0/100ths DOLLARS ($100.00), which amount Seller and Purchaser agree has been bargained for as consideration for Seller's execution and delivery of this Agreement and Purchaser's right to inspect the Project pursuant hereto shall, notwithstanding anything to the contrary herein, be deemed non-refundable under all circumstances.  

SECTION 3.  REPRESENTATIONS AND WARRANTIES BY SELLER.

Seller hereby represents and warrants to Purchaser as of the date hereof and as of the Closing as follows:

A.    Due Organization.

Seller is a limited liability company, duly organized and validly existing under the laws of the State of Delaware and qualified to do business in the State of California; Seller has full power and authority, and is duly authorized, to execute, enter into, deliver and perform this Agreement and its obligations hereunder. 

B.    Power.

This Agreement and all other agreements, instruments and documents required to be executed or delivered by Seller pursuant hereto have been or (if and when executed) will be duly executed and delivered by Seller, and are or will be legal, valid and binding obligations of Seller, enforceable against Seller in accordance with their terms.  No consents and permissions are required to be obtained by Seller for the execution and performance of this Agreement and the other documents to be executed by Seller hereunder.  The consummation of the transactions contemplated herein and the fulfillment of the terms hereof will not result in a breach of any of the terms or provisions of, or constitute a default under, any agreement or document to which Seller is a party or by which it is bound, or any order, rule or regulation of any court or of any federal or state regulatory body or any administrative agency or any other governmental body having jurisdiction over Seller or the Project.

C.    No Proceedings.

Except as set forth in Exhibit B and except for matters covered by insurance (which matters are also described in Exhibit B), Seller has not received any written notice that there is currently pending any action, suit or proceeding, including condemnation, eminent domain or similar proceedings, before any court or governmental agency or body against Seller or the Project which might have any material adverse result to the Project.  Without limiting the generality of the foregoing, Seller has not received any written notices from any governmental entities of violations or alleged violations of any laws, rules, regulations or codes, including environmental laws and 

	
			
	 
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building codes, with respect to the Project which have not been corrected to the satisfaction of the governmental agency issuing such notices.
D.    Contracts.

Attached hereto as Exhibit C is a list of all contracts or agreements to which Seller is a party for the providing of services to the Project and the leasing of equipment for the Project (which contracts and agreements, together with the contracts and agreements entered into with respect to the Project after the date hereof pursuant to Section 5 below, are herein referred to collectively as the "Contracts").  Seller has made true, correct and complete copies of the Contracts available to Purchaser on the due diligence website created for this transaction.  Except as set forth on such Exhibit, to Seller's actual knowledge, all of the Contracts are in full force and effect and free from default.
		
	E.
	Tenant Leases.

Attached hereto as Exhibit D-1 is a list of all leases and any other licenses and occupancy agreements pursuant to which any person occupies, or has the right to occupy, space in the Project (which leases, agreements and other documents, together with the lease documents entered into with respect to the Project after the date hereof pursuant to Section 5 below, are herein referred to collectively as the "Tenant Leases").  Exhibit D-1 also includes a list of all security deposits currently being held by Seller in connection with the Tenant Leases.  Seller has made true, correct and complete copies of the Tenant Leases available to Purchaser on the due diligence website created for this transaction.  Except for the Tenant Leases, there are no other leases or other occupancy agreements affecting the Project.  Seller has not granted any party any option to purchase the Project, rights of first refusal to purchase the Project or, except as set forth in the Tenants Leases, any licenses or other similar agreement with respect to the Project.  To Seller's actual knowledge, except as shown on Exhibit D-2 attached hereto, there are no defaults under any of the Tenant Leases and the Tenant Leases are in full force and effect.  There are no brokerage commissions or fees due now or payable in the future in connection with the Tenant Leases except for brokerage commissions that may be due Cushman & Wakefield U.S., Inc. (C&W) for lease renewals pursuant to that certain Commission Agreement for Lease, signed by Seller on December 8, 2017, and by C&W on December 27, 2017 (the "C&W Commission Agreement"); and, except for the Outstanding TI Work, all tenant improvement costs and work applicable to the current term and space covered by the Tenant Leases have been paid completed and paid in full.  

		
	F.
	ERISA.

Seller is not and is not acting on behalf of an "employee benefit plan" within the meaning of Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended, a "plan" within the meaning of Section 4975 of the Internal Revenue Code of 1986, as amended, or an entity deemed to hold "plan assets" within the meaning of 29 C.F.R. § 2510.3-101 of any such employee benefit plan or plans.

		
	G.
	OFAC

Seller is currently in compliance with, and shall at all times during the term of this Agreement (including any extension thereof) remain in compliance with, the regulations of the Office of Foreign Asset Control of the Department of the Treasury (including those named on its Specially Designated Nationals and Blocked Persons List) and any statute, executive order (including the September 24, 2001, Executive Order Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or Support Terrorism), or other governmental action relating thereto ("OFAC").

		
	H.
	Taxes and Special Assessments.  

	
			
	 
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Seller has not submitted an application for the creation of any special taxing district affecting the Project, or annexation thereby, or inclusion therein.  To Seller's knowledge, Seller has not received written notice that any governmental or quasi-governmental agency or authority intends to impose or increase any special or other assessment against the Project, or any part thereof, including assessments attributable to revaluations of the Project. There is no ongoing appeal with respect to taxes or special assessments on the Project for any year, and any consultants engaged to perform work with respect to appeals of taxes or special assessments on the Project have been paid in full.

		
	I.
	Employees.  

There are no employees of Seller employed in connection with the use, management, maintenance or operation of the Project whose employment will continue after the Closing Date.  There is no bargaining unit or union contract relating to any employees of Seller.

		
	J.
	No Bankruptcy.  

No petition in bankruptcy (voluntary or otherwise), attachment, execution proceeding, assignment for the benefit of creditors, or petition seeking reorganization or insolvency, arrangement or other action or proceeding under federal or state bankruptcy law is pending against or contemplated (or, to Seller's Knowledge, threatened) by or against Seller or any general partner or managing member of Seller.

		
	K.
	Governmental Agreements.

To Seller’s actual knowledge, in connection with Seller's development of the Project, Seller did not execute any material agreements with the City of Tracy that will continue to have ongoing obligations on Purchaser after Closing except for (i) City of Tracy Agreement for Maintenance of Landscape and Irrigation Improvements dated March __, 2016 ("Landscape Maintenance Agreement"); (ii) the various documents recorded in the County of San Joaquin real estate records, including the City of Tracy Deferred Improvement Agreement recorded April 9, 2018 as Instrument No. 2018-039087; and (iii) the City of Tracy “Conditions of Approval (or “COA”) for the Project, dated November 30, 2015, together with the City’s “Determination of the Development Services Director”, which are attached hereto as Exhibit L and which contain obligations the Purchaser will be obligated to fulfill as owner of the Project after Closing.   

		
	L.
	Limitations on Representations and Warranties.

As used herein, the term "Seller's actual knowledge" means the conscious knowledge of Greg Thurman (the lead developer for the Project); and such person shall not have any personal liability or be obligated to perform any due diligence investigations in connection with making any representations or warranties herein.  Except for the representations and warranties set forth in Subsections 3(A) and 3(B) above which shall survive the Closing indefinitely, all representations and warranties of Seller in this Agreement shall terminate 180 days after the Closing and Seller shall have no liability thereafter with respect to such representations and warranties except to the extent Purchaser has filed a lawsuit against Seller during such 180-day period for breach of any representation or warranty.  If Purchaser has actual knowledge (defined as the actual knowledge of Sara Butz (as opposed to constructive or imputed knowledge), which individual shall have no personal liability) at Closing or receives any written information from Seller at least five (5) business days prior to Closing (or Purchaser obtains its own written information prior to the Closing) which indicates that any of Seller's representations or warranties in this Agreement are not true as of the Closing and Purchaser elects nonetheless to proceed with the Closing, Purchaser shall be deemed to have waived any claim for breach of such representation or warranty.  In addition, Seller shall be relieved of any liability for the representations and warranties contained in Paragraph 3(E) with respect to any 

	
			
	 
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Tenant Lease to the extent Purchaser has received and approved an estoppel certificate covering the matters set forth in Paragraph 3(E) from the party who is the tenant under such Tenant Lease.

		
	M.
	Disclaimer.

EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT OR IN THE CLOSING DOCUMENTS EXECUTED BY SELLER, PURCHASER ACKNOWLEDGES AND AGREES THAT SELLER HAS NOT MADE, DOES NOT MAKE AND SPECIFICALLY NEGATES AND DISCLAIMS ANY REPRESENTATIONS, WARRANTIES, PROMISES, COVENANTS, AGREEMENTS OR GUARANTIES OF ANY KIND OR CHARACTER WHATSOEVER, WHETHER EXPRESS OR IMPLIED, ORAL OR WRITTEN, PAST, PRESENT OR FUTURE, OF, AS TO, CONCERNING OR WITH RESPECT TO (A) THE VALUE, NATURE, QUALITY OR PHYSICAL CONDITION OF THE PROJECT, INCLUDING, WITHOUT LIMITATION, THE WATER, SOIL AND GEOLOGY, (B) THE INCOME TO BE DERIVED FROM THE PROJECT, (C) THE SUITABILITY OF THE PROJECT FOR ANY AND ALL ACTIVITIES AND USES WHICH PURCHASER OR ANY TENANT MAY CONDUCT THEREON, (D) THE COMPLIANCE OF OR BY THE PROJECT OR ITS OPERATION WITH ANY LAWS, RULES, ORDINANCES OR REGULATIONS OF ANY APPLICABLE GOVERNMENTAL AUTHORITY OR BODY, (E) THE HABITABILITY, MERCHANTABILITY, MARKETABILITY, PROFITABILITY OR FITNESS FOR A PARTICULAR PURPOSE OF THE PROJECT, (F) THE MANNER OR QUALITY OF THE CONSTRUCTION OR MATERIALS, IF ANY, INCORPORATED INTO THE PROJECT, (G) THE MANNER, QUALITY, STATE OF REPAIR OR LACK OF REPAIR OF THE PROJECT, OR (H) COMPLIANCE WITH ANY ENVIRONMENTAL PROTECTION, POLLUTION OR LAND USE LAWS, RULES, REGULATIONS, ORDERS OR REQUIREMENTS, INCLUDING THE EXISTENCE IN OR ON THE PROJECT OF HAZARDOUS MATERIALS OR (I) ANY OTHER MATTER WITH RESPECT TO THE PROJECT.  THE FOREGOING RELEASE SHALL NOT EXTEND TO, AND SHALL EXPRESSLY EXCLUDE, CLAIMS ARISING FROM (I) SELLER'S BREACH OF THE EXPRESS REPRESENTATIONS, WARRANTIES, COVENANTS AND OBLIGATIONS (INCLUDING INDEMNITY OBLIGATIONS) UNDER THIS AGREEMENT AND SELLER'S CLOSING DOCUMENTS WHICH EXPRESSLY SURVIVE THE CLOSING.  THE FOREGOING RELEASE SHALL ALSO IN NO EVENT BE DEEMED TO ESTABLISH ANY OBLIGATION OR IMPLIED OBLIGATION FOR PURCHASER TO INDEMNIFY SELLER WITH RESPECT TO THE AFOREMENTIONED RELEASED MATTERS.  WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, UPON THE CLOSING, PURCHASER HEREBY WAIVES ANY RIGHT TO MAKE ANY CLAIM BASED ON ANY OF THE FOREGOING, INCLUDING, WITHOUT LIMITATION, ANY RIGHT TO MAKE ANY CLAIM AGAINST SELLER BASED ON THE VIOLATION OF ANY ENVIRONMENTAL LAWS.  ADDITIONALLY, NO PERSON ACTING ON BEHALF OF SELLER IS AUTHORIZED TO MAKE, AND BY EXECUTION HEREOF PURCHASER ACKNOWLEDGES THAT NO PERSON HAS MADE, ANY REPRESENTATION, AGREEMENT, STATEMENT, WARRANTY, GUARANTY OR PROMISE REGARDING THE PROJECT OR THE TRANSACTION CONTEMPLATED HEREIN; AND NO SUCH REPRESENTATION, WARRANTY, AGREEMENT, GUARANTY, STATEMENT OR PROMISE IF ANY, MADE BY ANY PERSON ACTING ON BEHALF OF SELLER SHALL BE VALID OR BINDING UPON SELLER UNLESS EXPRESSLY SET FORTH HEREIN.  PURCHASER FURTHER ACKNOWLEDGES AND AGREES THAT HAVING BEEN GIVEN THE OPPORTUNITY TO INSPECT THE PROJECT, PURCHASER IS RELYING SOLELY ON ITS OWN INVESTIGATION OF THE PROJECT AND NOT ON ANY INFORMATION PROVIDED OR TO BE PROVIDED BY SELLER EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, AND AGREES TO ACCEPT THE PROJECT AT THE CLOSING AND WAIVE ALL OBJECTIONS OR CLAIMS AGAINST SELLER (INCLUDING, BUT NOT LIMITED TO, ANY RIGHT OR CLAIM OF CONTRIBUTION) ARISING FROM OR RELATED TO THE PROJECT OR TO ANY HAZARDOUS MATERIALS ON THE PROJECT EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT.  PURCHASER FURTHER ACKNOWLEDGES AND AGREES THAT ANY INFORMATION PROVIDED OR TO BE PROVIDED WITH RESPECT TO THE PROJECT WAS OBTAINED FROM A VARIETY OF SOURCES AND THAT SELLER HAS NOT MADE ANY INDEPENDENT INVESTIGATION OR VERIFICATION OF SUCH INFORMATION AND MAKES NO REPRESENTATIONS AS TO THE 

	
			
	 
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ACCURACY, TRUTHFULNESS OR COMPLETENESS OF SUCH INFORMATION EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT.  SELLER IS NOT LIABLE OR BOUND IN ANY MANNER BY ANY VERBAL OR WRITTEN STATEMENT, REPRESENTATION OR INFORMATION PERTAINING TO THE PROJECT, OR THE OPERATION THEREOF, FURNISHED BY ANY REAL ESTATE BROKER, CONTRACTOR, AGENT, EMPLOYEE, SERVANT OR OTHER PERSON.  EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT OR IN THE CLOSING DOCUMENT EXECUTED BY SELLER, PURCHASER FURTHER ACKNOWLEDGES AND AGREES THAT TO THE MAXIMUM EXTENT PERMITTED BY LAW, THE SALE OF THE PROJECT AS PROVIDED FOR HEREIN IS MADE ON AN "AS IS" CONDITION AND BASIS WITH ALL FAULTS.  IT IS UNDERSTOOD AND AGREED THAT THE PURCHASE PRICE HAS BEEN ADJUSTED BY PRIOR NEGOTIATION TO REFLECT THAT ALL OF THE PROJECT IS SOLD BY SELLER AND PURCHASED BY PURCHASER SUBJECT TO THE FOREGOING.  THE PROVISIONS OF THIS SUBSECTION SHALL SURVIVE THE CLOSING OR ANY TERMINATION HEREOF.  
  
In connection with the releases set forth above, Purchaser, on behalf of itself, its affiliated successors, assigns and affiliated successors-in-interest, waives the benefit of California Civil Code Section 1542, which provides as follows:

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

Initials of Purchaser:                Initials of Seller:

/s/ J.R.W                    /s/ W.C.T              

SECTION 4.  REPRESENTATIONS AND WARRANTIES OF PURCHASER.

Purchaser hereby represents and warrants to Seller as of the date hereof as follows:  

A.    Due Organization.

Purchaser is a limited liability company organized, validly existing and in good standing under the laws of the State of Delaware.  Subject to the provisions in Section 4B below, Purchaser has full power and authority, and is duly authorized, to execute, enter into, deliver and perform this Agreement and its obligations hereunder.

B.    Power.

This Agreement and all other agreements, instruments and documents required to be executed or delivered by Purchaser pursuant hereto have been or (if and when executed) will be duly executed and delivered by Purchaser, and are or will be legal, valid and binding obligations of Purchaser, enforceable against Purchaser in accordance with their terms.  Except as provided below, no consents and permissions are required to be obtained by Purchaser for the execution and performance of this Agreement and the other documents to be executed by Purchaser hereunder.  Notwithstanding anything to the contrary set forth above, Purchaser will require approval of its board of directors in order to consummate the acquisition of the Project; provided, however, if Purchaser waives it right to terminate this Agreement on or before the expiration of the Due Diligence Deadline, Purchaser shall be deemed to have obtained such approval. The consummation of the transactions contemplated herein and the fulfillment of the terms hereof will not result in a breach of any of the terms or provisions of, or constitute a default under, any agreement or document to which Purchaser is a party or by which it is bound, or any order, rule or regulation 

	
			
	 
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of any court or of any federal or state regulatory body or any administrative agency or any other governmental body having jurisdiction over Purchaser.

C.    No Proceedings.

Purchaser has not received any written notice that there is currently pending any proceedings, legal, equitable or otherwise, against Purchaser which would affect its ability to perform its obligations hereunder.

D.    ERISA.

Purchaser is not and is not acting on behalf of an "employee benefit plan" within the meaning of Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended, a "plan" within the meaning of Section 4975 of the Internal Revenue Code of 1986, as amended, or an entity deemed to hold "plan assets" within the meaning of 29 C.F.R. § 2510.3-101 of any such employee benefit plan or plans.

E.    OFAC

Purchaser is currently in compliance with, and shall at all times during the term of this Agreement (including any extension thereof) remain in compliance with, the regulations of the OFAC.

F.    Limitations on Representations and Warranties.

As used herein, the term "Purchaser's actual knowledge" means the conscious knowledge of Sara Butz, and such person shall not have any personal liability or be obligated to perform any due diligence investigations in connection with making any representations or warranties herein.  All representations and warranties of Purchaser in this Agreement shall survive the Closing indefinitely.

SECTION 5.  OPERATION OF THE PROJECT PRIOR TO CLOSING AND POST-CLOSING LANDSCAPE OBLIGATION.

Seller agrees to do all of the following, from and after the date hereof and prior to the Closing:

(A)    Operate and maintain the Project in the same manner as it is currently being operated and shall, subject to damage, destruction or loss to the Project in which event Purchaser shall have the rights set forth in Section 7(D) below, cause the Project to be, on the Closing Date, in the same condition as exists as of the date of this Agreement (normal wear and tear excepted).

(B)      Maintain, or cause to be maintained, all existing insurance carried by Seller on the Improvements.

(C)    Without the prior written consent of Purchaser (except in the case of emergencies and except for tenant improvements required or permitted under the Tenant Leases), not make, or obligate itself to make, any material alterations or modifications to the Project. 

(D)    After the date which is two (2) business days prior to the expiration of the Due Diligence Deadline, not enter into any new agreements affecting the Project which would survive the Closing, including any leases or contracts, and not make any modifications or amendments to any agreements affecting the Project which would survive the Closing, without the prior written consent of Purchaser (which consent Purchaser may withhold in its sole discretion); provided, however, Seller shall not be obligated to obtain Purchaser's consent for any agreements or modifications which can be terminated on not more than 30 days' notice without the payment of any premium or penalty.  At least two (2) business 

	
			
	 
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days prior to the expiration of the Due Diligence Deadline, Seller shall give Purchaser written notice of such agreements (if any) which Seller shall be entering into prior to the expiration of the Due Diligence Deadline.  

(E)    On or prior to Closing, terminate all property management agreements and, subject to the immediately following sentence, terminate all Contracts which Purchaser has elected not to assume by delivery of written notice to Seller on or before the Due Diligence Deadline.  Promptly after the Due Diligence Deadline, Seller shall send notice terminating any Contract which Purchaser does not want to assume; and, as for any Contract (other than any property management agreement) terminated by Seller where the termination will not be effective until after Closing, Purchaser shall assume such Contracts, and shall be responsible for any normal charges payable under such Contract, but in each case only for the period from and after the Closing Date through the effective date of such termination.

(F)    As an obligation that will survive the Closing, Seller will agree to use reasonable good faith efforts to confirm the initial landscape improvement acceptance date by the City of Tracy (“Acceptance Date”) under the Landscape Maintenance Agreement, such date being the date which the City of Tracy acknowledges as the commencement date of the two (2) year period under the Landscape Maintenance Agreement, during which the LMA Bond must be maintained.  Seller will deliver City’s written confirmation to Purchaser, which may be in the form of an email, letter, signed permit card, notice or other City of Tracy format (“City’s Acceptance Date Confirmation”). Seller will have a period of six (6) months following the Closing (“Acceptance Date Confirmation Period”) to deliver the City’s Acceptance Date Confirmation to Purchaser.  Should the City of Tracy require an inspection of the Project as a condition to such acceptance and should the City of Tracy require corrective work as a condition to the City of Tracy’s acceptance of the Project’s landscape improvements (“Corrective Work”) during the Acceptance Date Confirmation Period, Seller will be solely responsible for contracting with the appropriate contractor(s) to complete the Corrective Work at Seller’s sole cost and expense up to a maximum amount of $200,000, with the Purchaser responsible for any such cost and expense in excess of such amount; provided, however, Purchaser will be responsible for maintaining the Project in a first-class manner throughout the Acceptance Date Confirmation Period, consistent with the requirements of the Landscape Maintenance Agreement.  Should the City of Tracy find deficiencies related to poor maintenance of the Project’s landscaping which are not related to the original installation thereof (for example, dead or dying plants, broken or malfunction irrigation systems), Purchaser will be solely responsible for curing such deficiencies at its expense.  Upon receipt of the City’s Acceptance Date Confirmation, Seller’s obligations under this Section 5(F) will terminate and Seller will have no further obligations under this Section 5(F).  If Seller is unable to obtain the City’s Acceptance Date Confirmation within the Acceptance Date Confirmation Period, Seller shall have no further obligation with respect to the Landscape Maintenance Agreement or the landscaping at the Project; and the Purchaser shall thereafter be solely responsible with respect thereto.  

SECTION 6.  ACCESS TO THE PROJECT.

Purchaser has entered into an Access Agreement, dated April 24, 2018, for the benefit of Seller (the "Access Agreement"); and Purchaser's obligations under the Access Agreement shall survive the execution of this Agreement and the Closing or termination of this Agreement.

SECTION 7.  CONDITIONS TO CLOSING.

In addition to the conditions provided in other provisions of this Agreement, the parties' obligations to perform their undertakings provided in this Agreement, are each conditioned on the fulfillment of each of the following which is a condition to such party's obligation to perform hereunder (subject to such party's waiver in strict accordance with Section 9 below):     

	
			
	 
	10
	 

(A)    Purchaser has obtained a current title insurance commitment from the Title Company for the Project (the "Title Commitment"); and, as soon as reasonably possible, Purchaser shall also obtain a current survey of the Project (the "Survey").  Purchaser previously delivered written notice dated May 14, 2018 ("Purchaser's Title Notice") to Seller of any matters set forth in the Survey or Title Commitment which have been disapproved by Purchaser, and all matters set forth therein which have not been disapproved by Purchaser in Purchaser's Title Notice shall be deemed "Permitted Exceptions."  Seller shall have until 3:00 p.m. Pacific Time on the date one (1) business day following the mutual execution of this Agreement to send Purchaser written notice in its sole discretion ("Seller's Title Notice") notifying Purchaser that it has elected to correct on or prior to Closing any matters which Purchaser has disapproved; and Seller shall be deemed to have elected not to cure any other matters set forth in Purchaser's Title Notice, provided, however, Seller shall in any event cause (i) any mortgages or deeds of trust placed on the Project by Seller to be discharged and released as of the Closing, and (ii) any judgment liens against Seller and any mechanic liens as a result of work done by Seller which are placed on the Project to be discharged and released.  Notwithstanding the foregoing, due to the recent nature of the construction on the Project, Purchaser acknowledges that (1) Seller may be required to provide a separate affidavit and/or indemnity to the Title Company to eliminate any general mechanic’s lien exception from the Title Policy; and (2) Purchaser may be required to accept a specific mechanic’s lien exception for any ongoing work for which Purchaser will receive a credit at Closing or for which money has been placed in escrow with the Title Company (collectively, the “Specific Lien Issues”).  Purchaser agrees that addressing the Specific Lien Issues in the manner set forth above is acceptable to Purchaser.  Seller may extend the Closing Date for up to ten (10) days in order to cure any title exceptions which Seller has elected or is obligated to cure hereunder.  If Seller does not elect to correct any matters disapproved by Purchaser as set forth above, Purchaser shall have until the expiration of the Due Diligence Deadline''' in which to elect either to waive its objection to such matters in which case such matters shall be deemed Permitted Exceptions or terminate this Agreement and obtain a refund of the Earnest Money; and Purchaser shall be deemed to have elected to waive its objection to such matters if Purchaser does not notify Seller of its election to terminate this Agreement prior to the expiration of the Due Diligence Deadline.  As a condition of the Purchaser's obligation to proceed with the Closing, the Title Company shall have committed to issue to Purchaser a title insurance policy (the "Title Insurance Policy") with Purchaser named as insured, dated as of the Closing Date, with a liability limit equal to the Purchase Price, insuring that title to the Land and the Improvements is vested in Purchaser, subject only to the Permitted Exceptions and Tenant Leases.

(B)    As a condition of Purchaser's obligation to proceed with Closing (and not as a default), Purchaser shall be satisfied in its sole and absolute discretion with all aspects of the Project; provided, however, if Purchaser does not notify Seller by the Due Diligence Deadline that it is not so satisfied, this condition shall be deemed waived by Purchaser.  If Purchaser does notify Seller by the Due Diligence Deadline that it is not satisfied with the Project, this Agreement shall terminate, except for those provisions which by their terms survive such termination; and, except as set forth in Section 2(A) above, the Earnest Money shall be refunded to Purchaser.  

(C)  As a condition to each party's obligation to perform hereunder, the due performance by the other of all undertakings and agreements to be performed by the other hereunder and the truth in all material respects of each representation and warranty as set forth herein made pursuant to this Agreement by the other at the Closing Date except for such changes as are expressly permitted under the terms of this Agreement; provided, however, if either party cannot remake any of its representations and warranties in all material respects as of Closing through no fault of its own, the other party's sole remedies shall either be to terminate this Agreement and receive a refund of the Earnest Money (except for the Initial Non-Refundable Amount if any representation or warranty cannot be remade through no fault of Seller) or waive the condition that such representation or warranty be remade as of Closing.

	
			
	 
	11
	 

(D)  As a condition to Purchaser's obligation to perform hereunder (and not as a default), that there shall not have occurred between the date hereof and the Closing Date, inclusive, destruction of or damage or loss to the Project (whether or not covered by insurance proceeds) from any cause whatsoever the cost of which to repair exceeds $750,000 or entitles any tenant to terminate its Tenant Lease.  Seller shall promptly notify Purchaser of such damage, and Purchaser shall have five (5) business days after receipt of such notice in which to elect to terminate this Agreement and receive a refund of the Earnest Money.  If Purchaser does not elect to terminate this Agreement within such period or if the cost of repairing the damage to the Project is less than $750,000 (and no tenant has the right to terminate its Tenant Lease), the parties shall proceed with the Closing in which case Seller shall assign to Purchaser any claims for proceeds from the insurance policies covering such destruction or damage (and give Purchaser a credit for the amount of any deductible thereof or any uninsured portion of the casualty up to an amount equal to $750,000, there shall be no other adjustment in the Purchase Price and Seller shall have no obligation to repair such damage.  In the event the Agreement is not terminated, Seller shall not compromise, settle or adjust any claims without the prior written consent of Purchaser.

(E)  As a condition to Purchaser's obligation to perform hereunder (and not as a default), that there shall not have occurred at any time or times on or before the Closing Date any taking or threatened taking of the Project or any material part thereof by condemnation (or any condemnation that allows any tenant to terminate its Tenant Lease), eminent domain or similar proceedings.  Notwithstanding the foregoing, Purchaser may elect to waive such condition in which case Seller shall assign to Purchaser at Closing all of Seller's right, title and interest in and to any proceeds resulting from any such proceeding.  In the event the Agreement is not terminated, Seller shall not compromise, settle or adjust any claims without the prior written consent of Purchaser.

(F)    Purchaser acknowledges that it has received a tenant estoppel certificate from Pactra in the form attached hereto as Exhibit E-1 and that such tenant estoppel certificate satisfies any requirement with respect thereto in connection with the Pactra Tenant Lease.  As a condition to Purchaser's obligations to perform hereunder (and not as a default), however, Seller shall have delivered to Purchaser a written acknowledgment (the "DHL Tenant Estoppel Certificate") from Exel, Inc., d/b/a DHL Supply Chain (USA), dated as of a date not more than thirty (30) days prior to Closing, without material deviation from either the form attached hereto as Exhibit E-2 or the form required under its Tenant Lease or in such other forms reasonably approved by Purchaser.  Seller shall use reasonable efforts to obtain the DHL Tenant Estoppel Certificate; provided, however, if Seller is unable to obtain the DHL Tenant Estoppel Certificate required herein, Purchaser shall have the option as its sole and exclusive remedies of (i) terminating this Agreement and, except as set forth in Section 2(A) above with respect to the Initial Non-Refundable Amount, obtaining a refund of the Earnest Money or (ii) proceeding with the Closing and waiving the requirement that it receive the DHL Tenant Estoppel Certificate.    

(G)    As a condition to Purchaser's obligations to perform hereunder (and not as a default), no tenant shall have terminated, or given notice of intent to terminate, its Tenant Lease pursuant to the terms of such Tenant Lease or otherwise.  No tenant shall have abandoned its premises or filed for voluntary bankruptcy or be subject to an involuntary bankruptcy proceeding.

(H)    Seller shall use reasonable good faith efforts to transfer to Purchaser the roof warranty for the Project (the “Roof Warranty”) from GAF, including submitting the application for the transfer of the Roof Warranty with GAF, paying the $500 transfer fee and arranging for the roof inspection by GAF required to transfer the Roof Warranty to Purchaser.  If Seller obtains an inspection report from GAF which confirms that the Roof Warranty may be transferred to Purchaser, Seller and Purchaser shall proceed with the Closing subject to the other terms and conditions set forth in this Agreement; and Seller’s obligations with respect to the Roof Warranty shall be deemed satisfied except that Seller shall file the 

	
			
	 
	12
	 

assignment of the Roof Warranty to Purchaser with GAF immediately following the Closing.  The Closing Date shall be deemed automatically extended to the date that is two (2) business days after the satisfaction of this condition; provided, however, if such inspection report is not obtained by June 27, 2018, Purchaser shall, as its sole and exclusive remedy, either (1) terminate this Agreement (other than those provisions of the Agreement which by their terms survive termination of this Agreement), in which case, notwithstanding anything to the contrary in this Agreement, the Earnest Money shall be refunded to Purchaser, or (2) elect to proceed to Closing without the inspection report (and roof warranty transfer requirement).  If Purchaser fails to notify Seller by 5:00 p.m. Pacific Time on June 27, 2018, that it has elected to waive the foregoing condition pursuant to clause (2) in the immediately preceding sentence, Purchaser shall be deemed to have elected to terminate this Agreement pursuant to clause (1) in the immediately preceding sentence.

SECTION 8.  CLOSING.

A.    Time.

The Closing hereunder shall occur on the Closing Date at the offices of the Title Company.

B.    Actions.

At the Closing, Seller shall convey the Project to Purchaser; and Purchaser shall pay to Seller the Purchase Price, plus or minus prorations as set forth herein.  The Closing shall occur through an escrow, the cost of which shall be shared equally between Purchaser and Seller.  Seller shall convey, and Purchaser shall receive, full possession of the Project at Closing, subject only to (i) the Tenant Leases, (ii) Permitted Exceptions, (iii) real estate and personal property taxes not yet due and payable, and (iv) all federal, state and local laws, ordinances and regulations.

C.    Deliveries.

(1)    At the Closing, Purchaser shall receive each of the following, in form and substance reasonably satisfactory to Purchaser (it being agreed by Purchaser that the documents attached hereto as exhibits are satisfactory in form to Purchaser), all of which shall have been deposited by Seller in escrow with the Title Company at least one (1) business day prior to the Closing Date:  

(a)  a grant deed in the form attached hereto as Exhibit F executed by Seller (the "Deed"); 

(b)  a bill of sale and assignment for the Personal Property in the form of Exhibit G, executed by Seller;

(c)  an assignment of the Contracts and the C&W Commission Agreement, in the form of Exhibit H attached hereto (the "Assignment of Contracts "), executed by Seller, assigning to Purchaser all of the Contracts and the C&W Commission Agreement, except for those Contracts which have been terminated effective on or prior to the Closing in accordance with the terms hereof; provided, however, for the absence of doubt, Seller shall not assign the construction contracts for the Outstanding TI Work since Seller will be completing the Outstanding TI Work after Closing;

(d)  an assignment of the Tenant Leases, in the form of Exhibit I hereto (the "Assignment of Tenant Leases"), executed by Seller;

	
			
	 
	13
	 

(e)  notices to each of the tenants under the Tenant Leases, notifying them of the sale of the Project and directing them to pay all future rent as Purchaser may direct; 

(f)  a closing statement setting forth all prorations and credits required hereunder;

(g)  an affidavit from Seller that it is not a "foreign person" or subject to withholding requirements under the Foreign Investment in Real Property Tax Act of 1980, as amended, and a California 593-C;

(h)  the original of all Tenant Leases, Contracts, licenses and permits, plans and specifications, operating manuals and guaranties and warranties with respect to the Project to the extent they are in the possession of Seller or its agents, provided, however, Seller shall have access to such items after Closing to the extent reasonably necessary for Seller to resolve any legal matters with respect to the Project relating to the period prior to the Closing; 

(i)  all keys and combinations to locks located at the Project;

(j) a termination of the existing management agreement for the Project;

(k)  such evidence as Purchaser or the Title Company may reasonably require as to the due authorization, execution and delivery by Seller of this Agreement and the documents required to be executed by Seller hereunder; 

(l)  a certificate executed by Seller reaffirming that Seller's representations and warranties set forth in this Agreement are true and correct in all material respects as of the Closing except as may be set forth in such certificate, provided such certificate shall be subject to the qualifications and limitations on Seller's liabilities set forth in this Agreement; and
        
(m) any transfer tax declarations required to be signed by Seller under applicable law in connection with the Deed.

(2)    At the Closing (or, except in the case of clause (f) below, at such later date as set forth below), Seller shall have received each of the following, in form and substance reasonably satisfactory to Seller (it being agreed by Seller that the documents attached hereto as exhibits are satisfactory in form to Seller), all of which shall have been deposited by Purchaser in escrow with the Title Company at least one (1) business day prior to the Closing Date (or such later time as is designated below):  

(a)  payment of the Purchase Price, plus or minus prorations;

(b)  copies of the Assignment of Contracts and the Assignment of Tenant Leases, executed by Purchaser;

(c)  such evidence as Seller or the Title Company may reasonably require as to the due authorization, execution and delivery by Purchaser of this Agreement and the documents required to be executed by Purchaser hereunder; 

(d)  a certificate executed by Purchaser reaffirming that Purchaser's representations and warranties set forth in this Agreement are true and correct in all material respects as of the Closing except as may be set forth in such certificate, provided such certificate shall be subject to the qualifications and limitations on Purchaser's liabilities set forth in this Agreement; and

	
			
	 
	14
	 

(e) any transfer tax declarations required to be signed by Purchaser under applicable law in connection with the Deed;

(f) within thirty (30) days following the Closing Date, evidence reasonably satisfactory to Seller that Purchaser has (i) replaced the "Landscape Bond" (also referred to herein as "LMA Bond") in the amount of $356,270.00, which was provided by Seller pursuant to the terms of the that Landscape Maintenance Agreement and (ii) replaced the "DIA Bond" in the amount of $150,000, which was provided by Seller pursuant to that certain City of Tracy Deferred Improvement Agreement NEI Phase 2 – Ridgeline Industrial Building on Pescadero Avenue, between Seller and the City of Tracy, which was recorded with the San Joaquin County Recorder as Document 2018 039087 ("DIA").   (The replacement bonds to be provided by Purchaser pursuant to this clause (f) are referred to collectively as the “Replacement Bonds.”)  If Purchaser has not replaced the Landscape Bond and DIA Bond at Closing with the Replacement Bonds, Purchaser shall indemnify, defend and hold Seller harmless, for any and all losses, liabilities and expenses incurred as a result of claims made against either the Landscape Bond or the DIA Bond during the period from Closing until such time as Purchaser has replaced the Landscape Bond and DIA Bond with the Replacement Bonds.

D.    Prorations.

The Purchase Price for the Project shall be subject to prorations and credits as follows to be determined as of 12:01 A.M. on the Closing Date, the Closing Date being a day of income and expense to Purchaser, with all prorations being based on the actual number of days in the year; provided, however, if Seller's bank does not receive the Purchase Price by 1:00 p.m. its time on the Closing Date, the prorations shall be determined as of 12:01 a.m. on the first business day following the Closing Date:  

1.    Purchaser shall receive a credit at Closing for all rents, including estimated payments for operating expenses and real estate taxes, collected by Seller prior to the Closing and allocable to the period after Closing but not for any rent which has not been collected by Seller.  No credit shall be given the Seller for accrued and unpaid rent or any other non-current sums due from tenants until said sums are paid, and Seller shall retain the right to collect any such rent provided Seller does not sue to evict any tenants or terminate any Tenant Leases.  Purchaser shall use reasonable efforts after Closing to collect any rent under the Tenant Leases which has accrued as of the Closing; provided, however, Purchaser shall not be obligated to sue any tenants or exercise any legal remedies under the Tenant Leases or otherwise pursue such amounts other than the ordinary course of business.  Any portion of any rents collected subsequent to the Closing Date and properly allocable to periods prior to the Closing Date shall be paid, promptly after receipt, to the Seller, but subject to all of the provisions of this Section; and any portion thereof properly allocable to periods on or subsequent to the Closing Date shall be paid to Purchaser.  All payments collected from tenants after Closing by either Seller or Purchaser shall be applied to the rent designated by the tenant making such payment.  If such tenant does not designate the rent to which such payment shall be applied, such payments shall first be applied to the month in which the Closing occurs, then to any rent due to Purchaser for the period after Closing and finally to any rent due to Seller for the period prior to Closing; provided, however, notwithstanding the foregoing, if Seller collects any payments from tenants after Closing through its own collection efforts, Seller may first apply such payments to rent due Seller for the period prior to the Closing.  Any cash security deposits held by Seller at Closing shall be credited to Purchaser on the Closing Date, and any non-cash security deposits held by Seller at Closing, including letters of credit, shall be transferred to Purchaser at Closing.  In furtherance of the foregoing, upon the Closing Date, Seller shall have obtained, prepared and executed a bank transfer application to transfer any letters of credit issued pursuant to a Tenant Lease to Purchaser, which application shall be delivered by Seller to the bank within one (1) business date following the Closing Date.  Thereafter, the parties shall work together in good faith to cause the bank to issue the transferred letter of credit to Purchaser 

	
			
	 
	15
	 

as soon as feasible.  During the term of this Agreement, Seller shall not apply any security deposits without the prior written consent of Purchaser.

2.    The adjustment rent or escalation payments payable under the Tenant Leases for taxes and operating expenses shall be reprorated after their final determination based on Seller's and Purchaser's respective share of such taxes and operating expenses.  Within sixty (60) days following the Closing, Seller shall deliver Purchaser all back-up invoices for costs incurred by Seller as operating expenses in calendar year 2018, so as to allow Purchaser to perform a year end reconciliation as required under the Tenant Leases.  As soon as reasonably possible after the end of the year in which the Closing occurs, Purchaser shall make a final calculation of the real estate taxes and operating expenses for the Project for such year as well as the adjustment rent or escalation payments payable under the Tenant Leases in connection therewith.  Purchaser shall also calculate Purchaser’s and Seller’s share thereof as set forth in the preceding sentence which calculation shall be submitted to Seller for its reasonable approval but only as to the portion affecting Seller.  Seller shall provide its approval or disapproval of such calculation within ten (10) days after receiving the calculation; and, if Seller does not notify Purchaser of its approval or disapproval within such ten (10) day period, Seller shall be deemed to have approved such calculation.  If Seller has collected more in estimated payments from the tenants for operating expenses and taxes than it is entitled to retain after the final reconciliations are completed, Seller shall pay such excess to Purchaser for refund to the tenants; and, if Seller has collected less in estimated payments than it is entitled to receive after the final reconciliations are completed, Purchaser shall bill the tenants for such amount and shall remit such amounts to Seller upon receipt.  Such obligations shall survive the Closing Date.

3.    Except to the extent they are directly paid by the tenants, real estate and personal property taxes due and payable with respect to the Project in the year in which the Closing occurs (regardless of when such taxes are assessed or accrue), together with any costs incurred by Seller in protesting such taxes or the assessments on the Project, shall be prorated based on the portion of the applicable tax year which has elapsed prior to the Closing Date.  If the amount of any such taxes has not been determined as of Closing, such credit shall be based on the most recent ascertainable taxes and shall be reprorated upon issuance of the final tax bill.  If the taxes can be paid on a discounted basis, the proration shall be done on the basis of the discounted amount payable at the earlier of the Closing Date or the date on which such taxes were paid.  Seller shall also give Purchaser a credit for any special assessments against the Project which are due and payable prior to Closing, and Purchaser shall be responsible for all special assessments due and payable on or after the Closing.

4.    If, after the Closing, Purchaser or Seller receives (in the form of a refund, credit, or otherwise) any amounts as a result of a real property tax contest, appeal, or protest (a "Protest"), such amounts will be applied as follows: first, to reimburse Purchaser or Seller, as applicable, for all costs incurred in connection with the Protest; second, to Purchaser for payment of refunds payable to past, present, or future tenants of the Project, in accordance with the terms of any Tenant Leases; and third, to Seller to the extent that such Protest covers the period prior to the Closing Date and to Purchaser to the extent that such Protest covers the period from and after the Closing Date.  Seller will not initiate any new Protest without the prior reasonable approval of Purchaser, and Seller will not unreasonably refuse to initiate a Protest prior to the Closing Date if Purchaser so requests in writing.

5.    Utilities and fuel payable by the owner of the Project, including, without limitation, steam, water, electricity, gas and oil, which are not directly paid by tenants, shall be prorated as of the Closing.  Seller shall use reasonable efforts to cause the meters, if any, for utilities to be read the day on which the Closing Date occurs and to pay the bills rendered on the basis of such readings.  If any such meter reading for any utility is not available, then adjustment therefor shall be made on the basis of the most recently issued bills therefor which are based on meter readings no earlier than thirty (30) days prior to the Closing Date; and such adjustment shall be reprorated when the next utility bills are received.  Purchaser shall 

	
			
	 
	16
	 

give Seller a credit at Closing for all deposits with utility companies serving the Project in which case Seller shall assign its rights to such deposits to Purchaser at the Closing; or, at Seller's option, Seller shall be entitled to receive a refund of such deposits from the utility companies, and Purchaser shall post its own deposits.
  
6.    Charges payable by the owner of the Project under the Contracts assigned to Purchaser pursuant to this Agreement shall be prorated on an accrual basis.  

     At least three (3) days prior to Closing, Seller shall deliver to Purchaser a draft closing statement setting forth the prorations required hereunder.  Within sixty (60) days after the Closing Date, Purchaser and Seller shall agree on a revised closing statement to the extent additional information is received after Closing with respect to the prorations described above; and within sixty (60) days after the end of the year in which the Closing has occurred, Purchaser and Seller shall agree on final prorations provided, however, Seller shall in any event be entitled to recover its share of any tax refunds or percentage rents as set forth herein paid after such final prorations.  The party owing money to the other party based on any revisions to the prorations shall make such payment within ten (10) business days after agreement on such revisions, except as may be otherwise provided herein with respect to Operating Expenses.

E.    Closing Costs.

Purchaser shall pay (1) the cost of the portion of ALTA extended coverage in the Title Policy (defined below) and any endorsements to the Title Policy, (2) the cost of the Survey requested by Purchaser, (3) one-half of any escrow or closing charge by the Title Company, (4) any recording fees payable in connection with the recording of the deed hereunder, and (5) its own due diligence and legal expenses.  Seller shall pay (1) any transfer taxes payable in connection with the recording of the deed hereunder, (2) the premium for the CLTA coverage in the Title Policy, (3) one-half of any escrow or closing charge by the Title Company, and (4) its own legal expenses.   

		
	F.
	Leasing Expenses.

Purchaser shall be responsible for, and shall indemnify and hold Seller harmless against, any brokerage commissions, tenant improvement expenses and other leasing costs in connection with any Tenant Leases executed after the date of this Agreement, lease amendments executed after the date hereof or in connection with options exercised after the date of this Agreement, including any such costs payable pursuant to the C&W Commission Agreement.  In addition, Purchaser shall give Seller a credit at Closing for any such expenses or costs which are paid by Seller prior to Closing in connection with any Tenant Leases or amendments thereto executed, or options under Tenant Leases exercised, after the date of this Agreement.  On or before Closing, Seller will either pay or give Purchaser a credit for the unpaid portion of the Unfunded Allowance or any unpaid commissions for any Tenant Leases and tenant lease amendments executed prior to the date of this Agreement, except for any commissions due and payable under the C&W Commission Agreement in connection with any options exercised after the date hereof under the Tenant Lease with Pactra USA, Inc.; and Purchaser shall be responsible for paying such portion after Closing.   

SECTION 9.  WAIVER; SEVERABILITY.

Each party hereto may, at any time or times, at its election, waive any of the conditions to its obligations hereunder by a written waiver expressly detailing the extent of such waiver (and no other waiver or alleged waiver by such party shall be effective for any purpose).  No such waiver shall reduce the rights or remedies of such party by reason of any breach by the other party or parties of any of its or their obligations hereunder. If any term, covenant, condition or provision of this Agreement, or the application thereof to any person or circumstance, shall to any extent be held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of 

	
			
	 
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the terms, covenants, conditions or provisions of this Agreement, or the application thereof to any person or circumstance, shall remain in full force and effect and shall in no way be affected, impaired or invalidated thereby.
  
SECTION 10.  BROKERS.

Each party represents and warrants to the other that it has not engaged or dealt with any brokers or finders in connection with the transactions set forth herein except for the Broker, and each party shall indemnify and hold the other party harmless from any claim, liability, loss or damage resulting from the indemnifying party's breach of the foregoing representation and warranty or from any party claiming a brokerage commission is due through such party's acts.  Seller shall be obligated to pay any commissions or fees due the Broker.  

SECTION 11.  SURVIVAL; FURTHER INSTRUMENTS.

Except as expressly set forth herein, none of the terms and provisions herein shall survive the Closing, and neither party shall be entitled to bring any cause of action against the other party with respect thereto after Closing.  Each party will, whenever and as often as it shall be requested so to do by the other, cause to be executed, acknowledged or delivered any and all such further instruments and documents as may be necessary or proper, in the reasonable opinion of the requesting party, in order to carry out the intent and purpose of this Agreement and as are consistent with this Agreement.  

SECTION 12.  NO THIRD PARTY BENEFITS.

This Agreement is made for the sole benefit of Purchaser and Seller and their respective successors and assigns (subject to the limitation on assignment set forth below), and no other person or persons shall have any right or remedy or other legal interest of any kind under or by reason of this Agreement.  Whether or not either party hereto elects to employ any or all of the rights, powers or remedies available to it hereunder, such party shall have no obligation or liability of any kind to any third party by reason of this Agreement or by reason of any of such party's actions or omissions pursuant hereto or otherwise in connection with this Agreement or the transactions contemplated hereby.  

SECTION 13.  REMEDIES.

		
	A.
	Purchaser Defaults.  

If Purchaser defaults in its obligation to close escrow as provided in this Agreement, Seller's sole remedy shall be to recover the Earnest Money as liquidated damages; provided, however, the Earnest Money shall not be deemed liquidated damages or a limit as to Purchaser's indemnification obligations under the Access Agreement.  The parties agree that Seller's damages in the event of a failure by Purchaser to Close Escrow will be difficult to determine and that the Earnest Money is a fair estimate of those damages.   THE AMOUNT PAID TO AND RETAINED BY SELLER AS LIQUIDATED DAMAGES PURSUANT TO THE FOREGOING PROVISIONS SHALL BE SELLER'S SOLE AND EXCLUSIVE REMEDY IF PURCHASER FAILS TO CLOSE THE PURCHASE OF THE PROPERTY.  THE PARTIES HERETO EXPRESSLY AGREE AND ACKNOWLEDGE THAT SELLER'S ACTUAL DAMAGES IN THE EVENT OF A FAILURE BY PURCHASER TO CLOSE ESCROW WOULD BE EXTREMELY DIFFICULT OR IMPRACTICABLE TO ASCERTAIN AND THAT THE AMOUNT OF THE EARNEST MONEY PLUS ANY INTEREST ACCRUED THEREON REPRESENTS THE PARTIES' REASONABLE ESTIMATE OF SUCH DAMAGES.  THE PAYMENT OF SUCH AMOUNT AS LIQUIDATED DAMAGES IS NOT INTENDED AS A FORFEITURE OR PENALTY WITHIN THE MEANING OF CALIFORNIA CIVIL CODE SECTIONS 3275 OR 3369, BUT IS INTENDED TO CONSTITUTE LIQUIDATED DAMAGES TO SELLER PURSUANT TO CALIFORNIA CIVIL CODE SECTIONS 1671, 1676 AND 1677.  NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN THIS SECTION 12, SELLER AND PURCHASER AGREE THAT THIS LIQUIDATED DAMAGES PROVISION IS NOT 

	
			
	 
	18
	 

INTENDED AND SHOULD NOT BE DEEMED OR CONSTRUED TO LIMIT IN ANY WAY PURCHASER'S INDEMNIFICATION OBLIGATIONS IN THE ACCESS AGREEMENT.

SELLER'S INITIALS: /s/ W.C.T.    PURCHASER'S INITIALS: /s/ J.R.W.   

		
	B.
	Seller Defaults.  

If Seller shall default hereunder prior to Closing, Purchaser shall be entitled as its sole remedies to either (i) terminate this Agreement and obtain a refund of all of the Earnest Money (including the Non-Refundable Amount) and reimbursement of its actual out-of-pocket costs incurred in connection with this Agreement in an amount not to exceed Seventy-Five Thousand Dollars ($75,000.00); or (ii) to sue for specific performance of this Agreement; and Purchaser waives any other rights or remedies at law or equity.  Seller shall have no liability after Closing for the breach of any representations, warranties or covenants set forth in this Agreement and any closing documents delivered pursuant hereto except to the extent the loss suffered by Purchaser as a result of such breaches exceeds $50,000 in the aggregate, and in no event shall Seller's liability after Closing for a breach of Seller's representations, warranties and covenants under this Agreement and any closing documents delivered pursuant hereto as a result of such breaches exceed two percent (2%) of the Purchase Price in the aggregate.  The foregoing cap, however, shall in no event be applicable to Seller's obligations with respect to prorations, the payment of commissions or the obligations to complete the Outstanding TI Work.  For six (6) months following the Closing Date, Seller shall maintain access to funds so as to have the ability to satisfy any post-closing obligations that it may have hereunder.

SECTION 14.  NOTICES.

All notices and other communications which either party is required or desires to send to the other shall be in writing and shall be sent by (i) e-mail or facsimile provided a copy thereof is also sent by one of the following means, (ii) hand delivery, (iii) registered or certified mail, postage prepaid, return receipt requested, or (iv) nationally-recognized overnight courier service.  Notices and other communications shall be deemed to have been given on actual receipt.  Notices shall be addressed as follows: 

     (a)    To Seller:  

c/o LaSalle Investment Management, Inc.
333 West Wacker Drive, 23rd Floor
Chicago, Illinois 60606
Attention: Mike Lewandowski
Telephone Number (312) 897-4009
E-Mail: mike.lewandowski@lasalle.com

with a copy to: 

Hagan & Vidovic LLP
101 North Wacker Drive, Suite 611
Chicago, Illinois 60606 
Attention: R.K. Hagan
Telephone Number (312) 525-8132
E-Mail: robert.hagan@handvlegal.com

	
			
	 
	19
	 

		
	(b)
	To Purchaser:  

c/o Black Creek Group
518 17th Street, 17th Floor
Denver, Colorado 80202
Attention:  Thomas McGonagle
Email:  tom.mcgonagle@blackcreekgroup.com

With a copy to:
Joshua J. Widoff
General Counsel
Black Creek Group
518 17th Street, 17th Floor
Denver, Colorado 80202
Email:  josh.widoff@blackcreekgroup.com

and a copy to:

Allen Matkins Leck Gamble Mallory & Natsis LLC
Attention:  Sandra A. Jacobson, Esq.
1900 Main Street, Fifth Floor
Irvine, California 92614
Phone: (949) 553-1313
Email:  sjacobson@allenmatkins.com

or to such other person and/or address as shall be specified by either party in a notice given to the other pursuant to the provisions of this Section.  

SECTION 15.  ATTORNEYS' FEES.

In the event either party institutes legal proceedings to enforce its rights hereunder, in addition to the relief granted the substantially prevailing party in such litigation, arbitration or mediation shall be paid all reasonable expenses of the litigation by the losing party, including its reasonable attorneys' fees and expert witness fees.

SECTION 16.  CONFIDENTIALITY.

Seller and Purchaser agree to keep this Agreement (including the Purchase Price and the names of the parties hereto) confidential and not disclose or make any public announcements with respect to the subject matter hereof without the consent of the other party.  Notwithstanding the foregoing or anything to the contrary herein, Purchaser may disclose this Agreement's terms and conditions and the existence of this Agreement (a) to its affiliates and its legal counsel and other agents and representatives, including prospective partners and lenders, and (b) as required by law, including without limitation, any disclosure required by the United States Securities and Exchange Commission.  Neither Seller nor Purchaser shall issue any press release with respect to Purchaser's acquisition of the Project or the terms of this Agreement without the prior written consent of the other party, which consent may be withheld in such party's sole discretion.

SECTION 17.  LIMITATION ON LIABILITY.

Any obligation or liability of either of the parties hereunder shall be enforceable only against, and payable only out of, the property of such party, and in no event shall any officer, director, shareholder, partner, beneficiary, 

	
			
	 
	20
	 

agent, advisor or employee of either party be held to any personal liability whatsoever or be liable for any of the obligations of the parties hereunder.

SECTION 18.    WAIVER OF CERTAIN DAMAGES.  

NOTWITHSTANDING ANYTHING HEREIN TO THE CONTRARY, THE PARTIES HEREBY UNCONDITIONALLY AND IRREVOCABLY WAIVE AND RELEASE ANY RIGHT, POWER OR PRIVILEGE EITHER MAY HAVE TO CLAIM OR RECEIVE FROM THE OTHER PARTY ANY PUNITIVE, EXEMPLARY, STATUTORY OR TREBLE DAMAGES OR ANY INCIDENTAL, INDIRECT OR CONSEQUENTIAL DAMAGES WITH RESPECT TO ANY BREACH OF ITS OBLIGATIONS UNDER THIS AGREEMENT, ACKNOWLEDGING AND AGREEING THAT THE REMEDIES HEREIN PROVIDED, WILL IN ALL CIRCUMSTANCES BE ADEQUATE.  THE FOREGOING WAIVER AND RELEASE SHALL APPLY IN ALL ACTIONS OR PROCEEDINGS BETWEEN THE PARTIES.

SECTION 19.  WAIVER OF JURY TRIAL.  
TO THE EXTENT PERMITTED BY APPLICABLE LAW, EACH OF THE PARTIES TO THIS AGREEMENT HEREBY AGREES TO WAIVE ITS RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT OR ANY OTHER DOCUMENT OR INSTRUMENT BETWEEN THE PARTIES RELATING TO THIS AGREEMENT, THE PROPERTY OR ANY DEALINGS BETWEEN THE PARTIES HERETO RELATING TO THE SUBJECT MATTER OF THIS AGREEMENT.  THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THAT RELATIONSHIP, INCLUDING, WITHOUT LIMITATION, CONTRACT CLAIMS, TORT CLAIMS, ANTITRUST CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON-LAW OR STATUTORY CLAIMS.  EACH PARTY HERETO ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL INDUCEMENT TO ENTER INTO THIS AGREEMENT AND ALL OTHER AGREEMENTS AND INSTRUMENTS PROVIDED FOR HEREIN, AND THAT EACH WILL CONTINUE TO RELY ON THIS WAIVER IN THEIR RELATED FUTURE DEALINGS.  EACH PARTY HERETO FURTHER WARRANTS AND REPRESENTS THAT IT HAS REVIEWED THIS WAIVER WITH LEGAL COUNSEL OF ITS OWN CHOOSING, OR HAS HAD AN OPPORTUNITY TO DO SO, AND THAT IT KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS HAVING HAD THE OPPORTUNITY TO CONSULT WITH LEGAL COUNSEL.  THIS WAIVER IS IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING, AND THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS, OR MODIFICATIONS TO THIS AGREEMENT OR ANY OTHER AGREEMENT OR DOCUMENT ENTERED INTO BETWEEN THE PARTIES IN CONNECTION WITH THIS AGREEMENT.  IN THE EVENT OF LITIGATION, THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT WITHOUT A JURY.
SELLER'S INITIALS: /s/ W.C.T.    PURCHASER'S INITIALS: /s/ J.R.W.

SECTION 20.    LIKE-KIND EXCHANGE

Each party agrees to reasonably cooperate with the other party in effecting an exchange transaction by the other party which includes the Project pursuant to Section 1031 of the United States Internal Revenue Code, provided that any exchange initiated by either party shall be at such party's sole cost and expense and shall not delay the Closing; and neither party shall be obligated to accept title to any other property as a result of such exchange.  Each party hereby agrees to take all reasonable steps on or before the Closing Date to facilitate such exchange if requested by the other party, provided that (a) no party making such accommodation shall be required to acquire any substitute property, (b) such exchange shall not affect the representations, warranties, liabilities, covenants and obligations of the parties to each other under the Agreement, (c) no party making such 

	
			
	 
	21
	 

accommodation shall incur any additional cost, expense or liability in connection with such exchange (other than expenses of reviewing and executing documents required in connection with such exchange), and (d) no dates in the Agreement will be extended as a result thereof unless by mutual written agreement of the parties.  Notwithstanding anything to the contrary contained in the foregoing, if Seller so elects to close the transfer of the Property as an exchange, then (i) Seller, at its sole option, may delegate its obligations to transfer some or all of the assets under the Agreement, and may assign its rights to receive all or a portion of the Purchase Price from Purchaser, to a deferred exchange qualified intermediary (a "QI") or to an exchange accommodation titleholder ("EAT"), as the case may be; (ii) such delegation and assignment shall in no way reduce, modify or otherwise affect the obligations of Seller pursuant to the Agreement; (iii) Seller shall remain fully liable for its obligations under the Agreement as if such delegation and assignment shall not have taken place; (iv) QI or EAT, as the case may be, shall have no liability to Purchaser; and (v) the closing of the transfer of the Project to Purchaser shall be undertaken by direct deed, assignment and other appropriate conveyance from Seller (or, if applicable, from other affiliates of Seller whom Seller will cause to execute such deeds, assignments and other appropriate instruments of conveyance) to Purchaser or to EAT, as the case may be.  Notwithstanding anything to the contrary contained in the foregoing, if Purchaser so elects to close the acquisition of the Project as an exchange, then (i) Purchaser, at its sole option, may delegate its obligations to acquire the Project under the Agreement, and may assign its rights to receive the Project from Seller, to a QI or to an EAT, as the case may be; (ii) such delegation and assignment shall in no way reduce, modify or otherwise affect the obligations of Purchaser pursuant to the Agreement; (iii) Purchaser shall remain fully liable for its obligations under the Agreement as if such delegation and assignment shall not have taken place; (iv) QI or EAT, as the case may be, shall have no liability to Seller; and (v) the closing of the acquisition of the Project by Purchaser or the EAT, as the case may be, shall be undertaken by direct deed from Seller (or, if applicable, from other affiliates of Seller whom Seller will cause to execute such deeds, assignments and other appropriate instruments of conveyance) to Purchaser (or to EAT, as the case may be).  

SECTION 21.  MISCELLANEOUS.

This Agreement (including all Exhibits hereto which are hereby incorporated by reference) contains the entire agreement between the parties respecting the matters herein set forth and supersedes all prior agreements between the parties hereto respecting such matters.  This Agreement shall be construed and enforced in accordance with the laws of the state where the Project is located.  Purchaser may not assign its rights under this Agreement without the prior written consent of Seller except Purchaser may assign all or any portion of this Agreement or its rights hereunder, or delegate all or any portion of its duties or obligations to an affiliate of Purchaser without Seller's written consent; any assignee shall be deemed to have assumed all of the assignor's obligations hereunder, and the assignor shall remain liable hereunder.  Except in connection with a 1031 exchange, Seller shall not assign this Agreement or any rights hereunder, or delegate any of its obligations, without the prior written approval of Purchaser.  For purposes of this Section 21, an affiliate of Purchaser shall include (a) any entity that is owned, controlled by or is under common control with Purchaser (a "Purchaser Control Entity"), and (b) any entity in which one or more Purchaser Controlled Entities directly or indirectly is the general partner (or similar managing partner, member or manager) or owns more than 50% of the economic interests of such entity, or (c) any entity (or subsidiary thereof) that is advised by an affiliate of BCI IV Advisors LLC.  Purchaser shall notify Seller at least five (5) business days prior to the Closing of any assignment of this Agreement.  Subject to the foregoing, this Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and assigns.  Time is of the essence of this Agreement and each provision hereof.  The provisions of this Agreement may not be amended, changed or modified orally, but only by an agreement in writing signed by the party against whom any amendment, change or modification is sought. Purchaser shall not record this Agreement, any memorandum of this Agreement, any assignment of this Agreement or any other document which would cause a cloud on the title to the Project.  This Agreement may be executed in counterparts and by facsimile or other electronic signature, each of which shall be deemed to be an original and all of which shall be deemed to be one and the same instrument. The section headings appearing in this Agreement are for convenience of reference only and are not intended, to any extent and for any purpose, to limit or define the text of any section 

	
			
	 
	22
	 

or any subsection hereof. The parties acknowledge that the parties and their counsel have reviewed and revised this Agreement and that the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Agreement or any exhibits or amendments hereto.

SECTION 22.  ADDITIONAL REIT PROVISIONS.

A.  Post-Closing Access to Records.  Upon receipt by Seller of Purchaser's reasonable written request at anytime and from time to time within a period from the Closing until the later of (i) 2 years after Closing, or (ii) for the period any tenant has the right under its lease for the Project to audit such books and records of Seller, Seller shall, at Seller's principal place of business, during Seller's normal business hours, make all of Seller's records relating to the Project, other than those previously delivered to Purchaser and other than any privileged or confidential books and records, available to Purchaser for inspection and copying (at Purchaser's sole cost and expense).

B.  Information and Audit Cooperation.  To the extent necessary to enable Purchaser to comply with any financial reporting requirements applicable to Purchaser and upon at least five (5) business days prior written notice to Seller, within 90 days after the Closing Date, Seller shall reasonably cooperate (at no cost or liability to Seller) and allow Purchaser's auditors to audit the trial balance related to the operation of the Project for the calendar year prior to the Closing Date and for the portion of the calendar year starting on January 1 through the Closing Date.  Other than any representation, warranty or covenant otherwise set forth in this Agreement or the documents delivered at Closing, Seller makes no representations, warranties or covenants with respect to the trial balance or the books and records which may be reviewed in auditing the same, and Purchaser releases and waives any liability or claims against Seller related to the trial balance or the books and records which may be reviewed and audited.

[Signatures on Following Page]

    

	
			
	 
	23
	 

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

"Seller"    Pescadero Land Holdings, LLC,
 a Delaware limited liability company

By: RPG Tracy, LLC,
its Operator Member

By:    /s/ Michael K. Gray
Title: Member  

"Purchaser"    BCI IV PESCADERO DC LP, 
    a Delaware limited partnership

By:    BCI IV PESCADERO DC GP LLC, 
            a Delaware limited liability company 
            its General Partner

By:    BCI IV Operating Partnership LP,
a Delaware limited partnership,
its Sole Member

By:    Black Creek Industrial REIT IV Inc.,
a Maryland corporation,
its General Partner

By:    /s/ J.R. Wetzel
Name:    J.R. Wetzel
Title:    Senior Managing Director

	
			
	 
	24Exhibit 4.1

 

Warrant Certificate No. [●]

 

NEITHER THE SECURITIES REPRESENTED BY THIS
CERTIFICATE NOR THE SECURITIES ISSUABLE UPON THE EXERCISE OF THIS WARRANT HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED (THE “ACT”), OR ANY STATE SECURITIES LAWS, AND NEITHER SUCH SECURITIES NOR ANY INTEREST THEREIN MAY BE OFFERED,
SOLD, ASSIGNED OR OTHERWISE TRANSFERRED UNLESS (1) A REGISTRATION STATEMENT WITH RESPECT THERETO IS EFFECTIVE UNDER THE ACT AND
ANY APPLICABLE STATE SECURITIES LAWS, OR (2) AN EXEMPTION FROM SUCH REGISTRATION EXISTS AND THE COMPANY RECEIVES AN OPINION OF
COUNSEL TO THE HOLDER OF SUCH SECURITIES, WHICH COUNSEL AND OPINION ARE SATISFACTORY TO THE COMPANY, THAT SUCH SECURITIES MAY BE
OFFERED, SOLD, PLEDGED, ASSIGNED OR TRANSFERRED IN THE MANNER CONTEMPLATED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
ACT OR APPLICABLE STATE SECURITIES LAWS.

 

	Effective Date: [●]	Void After: [●]

 

MOTUS GI HOLDINGS, INC.

 

WARRANT TO PURCHASE COMMON STOCK

 

Motus GI Holdings,
Inc., a Delaware corporation (the “Company”), effective [●] (the “Effective Date”),
hereby issues to [●], (the “Holder” or “Warrant Holder”) this Warrant (the “Warrant”)
to purchase [●] shares (each such share as from time to time adjusted as hereinafter provided being a “Warrant Share”
and all such shares being the “Warrant Shares”) of the Company’s Common Stock (as defined below), at the
Exercise Price (as defined below), as adjusted from time to time as provided herein, on or before [●] (the “Expiration
Date”), all subject to the following terms and conditions. This Warrant has been issued in connection with that certain
Consulting Agreement, between the Company and the Holder, dated [●], as the same may have been amended and supplemented from
time to time (the “Consulting Agreement”).

 

As used in this Warrant,
(i) “Business Day” means any day other than Saturday, Sunday or any other day on which commercial banks in the
City of New York, New York, are authorized or required by law or executive order to close; (ii) “Common Stock”
means the common stock of the Company, par value $0.0001 per share, including any securities issued or issuable with respect thereto
or into which or for which such shares may be exchanged for, or converted into, pursuant to any stock dividend, stock split, stock
combination, recapitalization, reclassification, reorganization or other similar event; (iii) “Exercise Price”
means $[●] per share of Common Stock, subject to adjustment as provided herein; (iv) “Trading Day” means
any day on which the Common Stock is traded (or available for trading) on its principal trading market; and (v) “Affiliate”
means any person that, directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common
control with, a person, as such terms are used and construed in Rule 144 promulgated under the Securities Act of 1933, as amended
(the “Securities Act”).

 

     

     

    

 

		1.	DURATION AND EXERCISE OF WARRANTS

 

(a)          Exercise
Period. The Holder may exercise this Warrant in whole or in part, on any Business Day on or before 5:00 P.M., Eastern Time,
on the Expiration Date, at which time this Warrant shall become void and of no value.

 

		(b)	Exercise Procedures.

 

(i)          While
this Warrant remains outstanding and exercisable in accordance with Section 1(a), in addition to the manner set forth in Section
1(b)(ii) below, the Holder may exercise this Warrant in whole or in part at any time and from time to time by:

 

(A)       delivery
to the Company of a duly executed copy of the Notice of Exercise attached as Exhibit A;

 

(B)       surrender
of this Warrant to the Secretary of the Company at its principal offices or at such other office or agency as the Company may specify
in writing to the Holder; and

 

(C)       payment
of the then-applicable Exercise Price per share multiplied by the number of Warrant Shares being purchased upon exercise of the
Warrant (such amount, the “Aggregate Exercise Price”) made in the form of cash, or by certified check, bank
draft or money order payable in lawful money of the United States of America or in the form of a Cashless Exercise to the extent
permitted in Section 1(b)(ii) below..

 

(ii)        In
addition to the provisions of Section 1(b)(i) above, if a registration statement covering the Warrant Shares that are the subject
of the Notice of Exercise (the “Unavailable Warrant Shares”), or an exemption from registration, is not available
for the resale of such Unavailable Warrant Shares, the Holder may, in its sole discretion, exercise all or any part of the Warrant
in a “cashless” or “net-issue” exercise (a “Cashless Exercise”) by delivering to the
Company (1) the Notice of Exercise and (2) the original Warrant, pursuant to which the Holder shall surrender the right to receive
upon exercise of this Warrant, a number of Warrant Shares having a value (as determined below) equal to the Aggregate Exercise
Price, in which case, the number of Warrant Shares to be issued to the Holder upon such exercise shall be calculated using the
following formula:

 

X        =       Y
* (A - B)

    A

  

	 	 with:	 	X  =	the number of Warrant Shares to be issued
to the Holder	 

 

		Y =	the number of Warrant Shares with respect to which the Warrant is being exercised

 

		A =	the fair value per share of Common Stock on the date of exercise of this Warrant

 

		B = 	the then-current
Exercise Price of the Warrant

 

    -2- 

     

    

 

Solely for the purposes
of this paragraph, “fair value” per share of Common Stock shall mean the average Closing Price (as defined below)
per share of Common Stock for the twenty (20) trading days immediately preceding the date on which the Notice of Exercise is deemed
to have been sent to the Company. “Closing Price” means, for any date, the price determined by the first of
the following clauses that applies: (a) if the Common Stock is then listed or quoted on the New York Stock Exchange, the NYSE MKT,
the NASDAQ Global Select Market, the NASDAQ Global Market or the NASDAQ Capital Market or any other national securities exchange,
the closing price per share of the Common Stock for such date (or the nearest preceding date) on the primary eligible market or
exchange on which the Common Stock is then listed or quoted; (b) if prices for the Common Stock are then quoted on the OTC Bulletin
Board or any tier of the OTC Markets, the closing bid price per share of the Common Stock for such date (or the nearest preceding
date) so quoted; or (c) if prices for the Common Stock are then reported in the “Pink Sheets” published by the National
Quotation Bureau Incorporated (or a similar organization or agency succeeding to its functions of reporting prices), the most recent
closing bid price per share of the Common Stock so reported. If the Common Stock is not publicly traded as set forth above, the
“fair value” per share of Common Stock shall be reasonably and in good faith determined by the Board of Directors of
the Company as of the date which the Notice of Exercise is deemed to have been sent to the Company.

 

Notwithstanding the
foregoing, provided that a registration statement (including any post-effective amendment) covering the resale of the Warrant Shares
by the Holder has (x) been declared effective by the SEC and (y) has been effective for an aggregate period of one year, any Cashless
Exercise right hereunder shall thereupon terminate.

 

For purposes of Rule
144 promulgated under the Securities Act, it is intended, understood and acknowledged that the Warrant Shares issued in a cashless
exercise transaction shall be deemed to have been acquired by the Holder, and the holding period for such shares shall be deemed
to have commenced, on the date this Warrant was originally issued.

 

(iii)          Upon
the exercise of this Warrant in compliance with the provisions of this Section 1(b), and except as limited pursuant to the last
paragraph of Section 1(b)(ii), the Company shall promptly issue and cause to be delivered to the Holder a certificate for the Warrant
Shares purchased by the Holder. Each exercise of this Warrant shall be effective immediately prior to the close of business on
the date (the “Date of Exercise”) that the conditions set forth in Section 1(b) have been satisfied, as the
case may be. On the first Business Day following the date on which the Company has received each of the Notice of Exercise and
the Aggregate Exercise Price (or notice of a Cashless Exercise in accordance with Section 1(b)(ii)) (the “Exercise Delivery
Documents”), the Company shall transmit an acknowledgment of receipt of the Exercise Delivery Documents to the Company’s
transfer agent (the “Transfer Agent”). On or before the third Business Day following the date on which the Company
has received all of the Exercise Delivery Documents (the “Share Delivery Date”), the Company shall (X) provided
that the Transfer Agent is participating in The Depository Trust Company (“DTC”) Fast Automated Securities Transfer
Program, upon the request of the Holder, credit such aggregate number of shares of Common Stock to which the Holder is entitled
pursuant to such exercise to the Holder’s or its designee’s balance account with DTC through its Deposit Withdrawal
Agent Commission system, or (Y) if the Transfer Agent is not participating in the DTC Fast Automated Securities Transfer Program,
issue and dispatch by overnight courier to the address as specified in the Notice of Exercise, a certificate, registered in the
Company’s share register in the name of the Holder or its designee, for the number of shares of Common Stock to which the
Holder is entitled pursuant to such exercise. Upon delivery of the Exercise Delivery Documents, the Holder shall be deemed for
all corporate purposes to have become the holder of record of the Warrant Shares with respect to which this Warrant has been exercised,
irrespective of the date of delivery of the certificates evidencing such Warrant Shares.

 

    -3- 

     

    

 

(c)           Partial
Exercise. This Warrant shall be exercisable, either in its entirety or, from time to time, for part only of the number of Warrant
Shares referenced by this Warrant. If this Warrant is submitted in connection with any exercise pursuant to Section 1 and the number
of Warrant Shares represented by this Warrant submitted for exercise is greater than the actual number of Warrant Shares being
acquired upon such an exercise, then the Company shall as soon as practicable and in no event later than five (5) Business Days
after any exercise and at its own expense, issue a new Warrant of like tenor representing the right to purchase the number of Warrant
Shares purchasable immediately prior to such exercise under this Warrant, less the number of Warrant Shares with respect to which
this Warrant is exercised.

 

(d)           Disputes.
In the case of a dispute as to the determination of the Exercise Price or the arithmetic calculation of the Warrant Shares, the
Company shall promptly issue to the Holder the number of Warrant Shares that are not disputed and resolve such dispute in accordance
with Section 16.

 

		2.	ISSUANCE OF WARRANT SHARES

 

(a)           The
Company covenants that all Warrant Shares will, upon issuance in accordance with the terms of this Warrant, be (i) duly authorized,
fully paid and non-assessable, and (ii) free from all liens, charges and security interests, with the exception of claims arising
through the acts or omissions of any Holder and except as arising from applicable Federal and state securities laws.

 

(b)          The
Company shall register this Warrant upon records to be maintained by the Company for that purpose in the name of the record holder
of such Warrant from time to time. The Company may deem and treat the registered Holder of this Warrant as the absolute owner thereof
for the purpose of any exercise thereof, any distribution to the Holder thereof and for all other purposes.

 

(c)           The
Company will not, by amendment of its certificate of incorporation, by-laws or through any reorganization, transfer of assets,
consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance
or performance of any of the terms to be observed or performed hereunder by the Company, but will at all times in good faith assist
in the carrying out of all the provisions of this Warrant and in the taking of all action necessary or appropriate in order to
protect the rights of the Holder to exercise this Warrant, or against impairment of such rights.

 

    -4- 

     

    

 

		3.	ADJUSTMENTS OF EXERCISE PRICE, NUMBER AND TYPE OF WARRANT
SHARES

 

(a)           The
Exercise Price and the number of shares purchasable upon the exercise of this Warrant shall be subject to adjustment from time
to time upon the occurrence of certain events described in this Section 3; provided, that notwithstanding the provisions
of this Section 3, the Company shall not be required to make any adjustment if and to the extent that such adjustment would require
the Company to issue a number of shares of Common Stock in excess of its authorized but unissued shares of Common Stock, less all
amounts of Common Stock that have been reserved for issue upon the conversion of all outstanding securities convertible into shares
of Common Stock and the exercise of all outstanding options, warrants and other rights exercisable for shares of Common Stock.
If the Company does not have the requisite number of authorized but unissued shares of Common Stock to make any adjustment, the
Company shall use its commercially reasonable efforts to obtain the necessary stockholder consent to increase the authorized number
of shares of Common Stock to make such an adjustment pursuant to this Section 3.

 

(i)            Subdivision
or Combination of Stock. In case the Company shall at any time subdivide (whether by way of stock dividend, stock split or
otherwise) its outstanding shares of Common Stock into a greater number of shares, the Exercise Price in effect immediately prior
to such subdivision shall be proportionately reduced and the number of Warrant Shares shall be proportionately increased, and conversely,
in case the outstanding shares of Common Stock of the Company shall be combined (whether by way of stock combination, reverse stock
split or otherwise) into a smaller number of shares, the Exercise Price in effect immediately prior to such combination shall be
proportionately increased and the number of Warrant Shares shall be proportionately decreased. The Exercise Price and the Warrant
Shares, as so adjusted, shall be readjusted in the same manner upon the happening of any successive event or events described in
this Section 3(a)(i).

 

(ii)          Dividends
in Stock, Property, Reclassification. If at any time, or from time to time, all of the holders of Common Stock (or any shares
of stock or other securities at the time receivable upon the exercise of this Warrant) shall have received or become entitled to
receive, without payment therefore:

 

(A)      any
shares of stock or other securities that are at any time directly or indirectly convertible into or exchangeable for Common Stock,
or any rights or options to subscribe for, purchase or otherwise acquire any of the foregoing by way of dividend or other distribution,
or

 

(B)       additional
stock or other securities or property (including cash) by way of spin-off, split-up, reclassification, combination of shares or
similar corporate rearrangement (other than shares of Common Stock issued as a stock split or adjustments in respect of which shall
be covered by the terms of Section 3(a)(i) above),

 

    -5- 

     

    

 

then and in each such case, the Exercise
Price and the number of Warrant Shares to be obtained upon exercise of this Warrant shall be adjusted proportionately, and the
Holder hereof shall, upon the exercise of this Warrant, be entitled to receive, in addition to the number of shares of Common Stock
receivable thereupon, and without payment of any additional consideration therefor, the amount of stock and other securities and
property (including cash in the cases referred to above) that such Holder would hold on the date of such exercise had such Holder
been the holder of record of such Common Stock as of the date on which holders of Common Stock received or became entitled to receive
such shares or all other additional stock and other securities and property. The Exercise Price and the Warrant Shares, as so adjusted,
shall be readjusted in the same manner upon the happening of any successive event or events described in this Section 3(a)(ii).

 

(b)           Certificate
as to Adjustments. Upon the occurrence of each adjustment or readjustment pursuant to this Section 3, the Company at its expense
shall promptly compute such adjustment or readjustment in accordance with the terms hereof and furnish to each Holder of this Warrant
a certificate setting forth such adjustment or readjustment and showing in detail the facts upon which such adjustment or readjustment
is based. The Company shall promptly furnish or cause to be furnished to such Holder a like certificate setting forth: (i) such
adjustments and readjustments; and (ii) the number of shares and the amount, if any, of other property which at the time would
be received upon the exercise of the Warrant.

 

(c)            Certain
Events. If any event occurs as to which the other provisions of this Section 3 are not strictly applicable but the lack of
any adjustment would not fairly protect the purchase rights of the Holder under this Warrant in accordance with the basic intent
and principles of such provisions, or if strictly applicable would not fairly protect the purchase rights of the Holder under this
Warrant in accordance with the basic intent and principles of such provisions, then the Company’s Board of Directors will, in good
faith, make an appropriate adjustment to protect the rights of the Holder; provided, that no such adjustment pursuant to
this Section 3(c) will increase the Exercise Price or decrease the number of Warrant Shares as otherwise determined pursuant to
this Section 3.

 

		4.	INTENTIONALLY OMITTED.

 

		5.	TRANSFERS AND EXCHANGES OF WARRANT AND WARRANT SHARES

 

(a)            Registration
of Transfers and Exchanges. Subject to Section 5(c), upon the Holder’s surrender of this Warrant, with a duly executed
copy of the Form of Assignment attached as Exhibit B, to the Secretary of the Company at its principal offices or at such
other office or agency as the Company may specify in writing to the Holder, the Company shall register the transfer of all or any
portion of this Warrant. Upon such registration of transfer, the Company shall issue a new Warrant, in substantially the form of
this Warrant, evidencing the acquisition rights transferred to the transferee and a new Warrant, in similar form, evidencing the
remaining acquisition rights not transferred, to the Holder requesting the transfer.

 

    -6- 

     

    

 

(b)           Warrant
Exchangeable for Different Denominations. The Holder may exchange this Warrant for a new Warrant or Warrants, in substantially
the form of this Warrant, evidencing in the aggregate the right to purchase the number of Warrant Shares which may then be purchased
hereunder, each of such new Warrants to be dated the date of such exchange and to represent the right to purchase such number of
Warrant Shares as shall be designated by the Holder. The Holder shall surrender this Warrant with duly executed instructions regarding
such re-certification of this Warrant to the Secretary of the Company at its principal offices or at such other office or agency
as the Company may specify in writing to the Holder.

 

(c)           Restrictions
on Transfers. This Warrant may not be transferred at any time without (i) registration under the Securities Act or (ii) an
exemption from such registration and a written opinion of legal counsel addressed to the Company that the proposed transfer of
the Warrant may be effected without registration under the Securities Act, which opinion will be in form and from counsel reasonably
satisfactory to the Company.

 

(d)           Permitted
Transfers and Assignments. Notwithstanding any provision to the contrary in this Section 5, the Holder may transfer, with or
without consideration, this Warrant or any of the Warrant Shares (or a portion thereof) to the Holder’s Affiliates (as such
term is defined under Rule 144 of the Securities Act) without obtaining the opinion from counsel that may be required by Section
5(c)(ii), provided, that the Holder delivers to the Company and its counsel certification, documentation, and other assurances
reasonably required by the Company’s counsel to enable the Company’s counsel to render an opinion to the Company’s
Transfer Agent that such transfer does not violate applicable securities laws.

 

		6.	MUTILATED OR MISSING WARRANT CERTIFICATE

 

If this Warrant is
mutilated, lost, stolen or destroyed, upon request by the Holder, the Company will, at its expense, issue, in exchange for and
upon cancellation of the mutilated Warrant, or in substitution for the lost, stolen or destroyed Warrant, a new Warrant, in substantially
the form of this Warrant, representing the right to acquire the equivalent number of Warrant Shares; provided, that, as
a prerequisite to the issuance of a substitute Warrant, the Company may require satisfactory evidence of loss, theft or destruction
as well as an indemnity from the Holder of a lost, stolen or destroyed Warrant.

 

		7.	PAYMENT OF TAXES

 

The Company will pay
all transfer and stock issuance taxes attributable to the preparation, issuance and delivery of this Warrant and the Warrant Shares
(and replacement Warrants) including, without limitation, all documentary and stamp taxes; provided, however, that
the Company shall not be required to pay any tax in respect of the transfer of this Warrant, or the issuance or delivery of certificates
for Warrant Shares or other securities in respect of the Warrant Shares to any person or entity other than to the Holder.

 

    -7- 

     

    

 

		8.	FRACTIONAL WARRANT SHARES

 

No fractional Warrant
Shares shall be issued upon exercise of this Warrant. The Company, in lieu of issuing any fractional Warrant Share, shall round
up the number of Warrant Shares issuable to nearest whole share.

 

		9.	NO STOCK RIGHTS AND LEGEND

 

No holder of this Warrant,
as such, shall be entitled to vote or be deemed the holder of any other securities of the Company that may at any time be issuable
on the exercise hereof, nor shall anything contained herein be construed to confer upon the holder of this Warrant, as such, the
rights of a stockholder of the Company or the right to vote for the election of directors or upon any matter submitted to stockholders
at any meeting thereof, or give or withhold consent to any corporate action or to receive notice of meetings or other actions affecting
stockholders (except as provided herein), or to receive dividends or subscription rights or otherwise (except as provide herein).

 

Each certificate for
Warrant Shares initially issued upon the exercise of this Warrant, and each certificate for Warrant Shares issued to any subsequent
transferee of any such certificate, shall be stamped or otherwise imprinted with a legend in substantially the following form:

 

“THE SECURITIES
REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”),
OR ANY STATE SECURITIES LAWS, AND NEITHER SUCH SECURITIES NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD, PLEDGED, ASSIGNED OR OTHERWISE
TRANSFERRED UNLESS (1) A REGISTRATION STATEMENT WITH RESPECT THERETO IS EFFECTIVE UNDER THE ACT AND ANY APPLICABLE STATE SECURITIES
LAWS, OR (2) AN EXEMPTION FROM SUCH REGISTRATION EXISTS AND THE COMPANY RECEIVES AN OPINION OF COUNSEL TO THE HOLDER OF SUCH SECURITIES,
WHICH COUNSEL AND OPINION ARE REASONABLY SATISFACTORY TO THE COMPANY, THAT SUCH SECURITIES MAY BE OFFERED, SOLD, PLEDGED, ASSIGNED
OR TRANSFERRED IN THE MANNER CONTEMPLATED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT OR APPLICABLE STATE SECURITIES
LAWS.”

 

		10.	INTENTIONALLY OMMITTED.

 

		11.	NOTICES

 

All notices, consents,
waivers, and other communications under this Warrant must be in writing and will be deemed given to a party when (a) delivered
to the appropriate address by hand or by nationally recognized overnight courier service (costs prepaid); (b) sent by facsimile
or e-mail with confirmation of transmission by the transmitting equipment; (c) received or rejected by the addressee, if sent by
certified mail, return receipt requested, if to the registered Holder hereof; or (d) seven days after the placement of the notice
into the mails (first class postage prepaid), to the Holder at the address, facsimile number, or e-mail address furnished by the
registered Holder to the Company from time to time, or if to the Company, to it at 150 Union Square Drive, New Hope, PA 18938,
Attn: Mark Pomeranz (or to such other address, facsimile number, or e-mail address as the Holder or the Company as a party may
designate by notice the other party).

 

    -8- 

     

    

 

		12.	SEVERABILITY

 

If a court of competent
jurisdiction holds any provision of this Warrant invalid or unenforceable, the other provisions of this Warrant will remain in
full force and effect. Any provision of this Warrant held invalid or unenforceable only in part or degree will remain in full force
and effect to the extent not held invalid or unenforceable.

 

		13.	BINDING EFFECT

 

This Warrant shall
be binding upon and inure to the sole and exclusive benefit of the Company, its successors and assigns, the registered Holder or
Holders from time to time of this Warrant and the Warrant Shares.

 

		14.	SURVIVAL OF RIGHTS AND DUTIES

 

This Warrant shall
terminate and be of no further force and effect on the earlier of 5:00 P.M., Eastern Time, on the Expiration Date or the date on
which this Warrant has been exercised in full.

 

		15.	GOVERNING LAW

 

This Warrant will be
governed by and construed under the laws of the State of New York without regard to conflicts of laws principles that would require
the application of any other law.

 

		16.	DISPUTE RESOLUTION

 

In the case of a dispute
as to the determination of the Exercise Price or the arithmetic calculation of the Warrant Shares, the Company shall submit the
disputed determinations or arithmetic calculations via facsimile within two Business Days of receipt of the Notice of Exercise
giving rise to such dispute, as the case may be, to the Holder. If the Holder and the Company are unable to agree upon such determination
or calculation of the Exercise Price or the Warrant Shares within three Business Days of such disputed determination or arithmetic
calculation being submitted to the Holder, then the Company shall, within two Business Days, submit via facsimile (a) the disputed
determination of the Exercise Price to an independent, reputable investment bank selected by the Company and approved by the Holder
or (b) the disputed arithmetic calculation of the Warrant Shares to the Company’s independent, outside accountant. The Company
shall cause at its expense the investment bank or the accountant, as the case may be, to perform the determinations or calculations
and notify the Company and the Holder of the results no later than ten (10) Business Days from the time it receives the disputed
determinations or calculations. Such investment bank’s or accountant’s determination or calculation, as the case may
be, shall be binding upon all parties absent demonstrable error.

 

    -9- 

     

    

 

		17.	NOTICES OF RECORD DATE

 

Upon (a) any establishment
by the Company of a record date of the holders of any class of securities for the purpose of determining the holders thereof who
are entitled to receive any dividend or other distribution, or right or option to acquire securities of the Company, or any other
right, or (b) any capital reorganization, reclassification, recapitalization, merger or consolidation of the Company with or into
any other corporation, any transfer of all or substantially all the assets of the Company, or any voluntary or involuntary dissolution,
liquidation or winding up of the Company, or the sale, in a single transaction, of a majority of the Company’s voting stock
(whether newly issued, or from treasury, or previously issued and then outstanding, or any combination thereof), the Company shall
mail to the Holder at least ten (10) Business Days, or such longer period as may be required by law, prior to the record date specified
therein, a notice specifying (i) the date established as the record date for the purpose of such dividend, distribution, option
or right and a description of such dividend, option or right, (ii) the date on which any such reorganization, reclassification,
transfer, consolidation, merger, dissolution, liquidation or winding up, or sale is expected to become effective and (iii) the
date, if any, fixed as to when the holders of record of Common Stock shall be entitled to exchange their shares of Common Stock
for securities or other property deliverable upon such reorganization, reclassification, transfer, consolation, merger, dissolution,
liquidation or winding up.

 

		18.	RESERVATION OF SHARES

 

The Company shall reserve
and keep available out of its authorized but unissued shares of Common Stock for issuance upon the exercise of this Warrant, free
from pre-emptive rights, such number of shares of Common Stock for which this Warrant shall from time to time be exercisable. The
Company will take all such reasonable action as may be necessary to assure that such Warrant Shares may be issued as provided herein
without violation of any applicable law or regulation. Without limiting the generality of the foregoing, the Company covenants
that it will use commercially reasonable efforts to take all such action as may be necessary or appropriate in order that the Company
may validly and legally issue fully paid and nonassessable Warrant Shares upon the exercise of this Warrant and use commercially
reasonable efforts to obtain all such authorizations, exemptions or consents, including but not limited to consents from the Company’s
stockholders or Board of Directors or any public regulatory body, as may be necessary to enable the Company to perform its obligations
under this Warrant.

 

		19.	NO THIRD PARTY RIGHTS

 

This Warrant is not
intended, and will not be construed, to create any rights in any parties other than the Company and the Holder, and no person or
entity may assert any rights as third-party beneficiary hereunder.

 

[SIGNATURE PAGE FOLLOWS]

 

    -10- 

     

    

 

IN WITNESS WHEREOF,
the Company has caused this Warrant to be duly executed as of the date first set forth above.

 

MOTUS GI HOLDINGS, INC.

 

	By:

	 	 
	Name:     Mark Pomeranz	 
	Title:       Chief Executive Officer	 

 

[Signature Page to Warrant]

 

     

     

    

 

EXHIBIT A

 

NOTICE OF EXERCISE

 

(To be executed by the Holder of Warrant
if such Holder desires to exercise Warrant)

 

To Motus GI Holdings, Inc.:

 

The undersigned hereby
irrevocably elects to exercise this Warrant and to purchase thereunder, ___________________ full shares of Motus GI Holdings, Inc.
common stock issuable upon exercise of the Warrant and delivery of:

 

(1)           $_________
(in cash as provided for in the foregoing Warrant) and any applicable taxes payable by the undersigned pursuant to such Warrant;
and

 

(2)           _________
shares of Common Stock (Pursuant to a Cashless Exercise in accordance with Section 1(b)(ii) of the Warrant) (check here if the
undersigned desires to deliver an unspecified number of shares equal the number sufficient to effect a Cashless Exercise ____).

 

 The undersigned
requests that certificates for such shares be issued in the name of:

 

 

(Please print name, address and social security
or federal employer

identification number (if applicable))

 

 

 

 

  

The undersigned hereby
affirms that the undersigned is an accredited investor as defined under Rule 501 of Regulation D of the Securities Act of 1933.  
If the Holder cannot make the foregoing affirmation because it is factually incorrect, it shall be a condition to the exercise
of the Warrant that the Company receive such other representations as the Company considers necessary, acting reasonably, to assure
the Company that the issuance of securities upon exercise of this Warrant shall not violate any United States or other applicable
securities laws.

 

If the shares issuable
upon this exercise of the Warrant are not all of the Warrant Shares which the Holder is entitled to acquire upon the exercise
of the Warrant, the undersigned requests that a new Warrant evidencing the rights not so exercised be issued in the name of and
delivered to:

 

 

 (Please print name, address and social
security or federal employer 

identification number (if applicable)) 

 

 

 

 

 

	 	Name of Holder (print):	 

	 	(Signature):	 

	 	(By:)	 

	 	(Title:)	 

	 	Dated:	 

 

     

     

    

 

EXHIBIT B

 

FORM OF ASSIGNMENT

 

FOR VALUE RECEIVED,
___________________________________ hereby sells, assigns and transfers to each assignee set forth below all of the rights of the
undersigned under the Warrant (as defined in and evidenced by the attached Warrant) to acquire the number of Warrant Shares set
opposite the name of such assignee below and in and to the foregoing Warrant with respect to said acquisition rights and the shares
issuable upon exercise of the Warrant:

 

	Name of Assignee	Address	Number of Shares
		 	 
		 	 
		 	 
		 	 

 

If the total of the
Warrant Shares are not all of the Warrant Shares evidenced by the foregoing Warrant, the undersigned requests that a new Warrant
evidencing the right to acquire the Warrant Shares not so assigned be issued in the name of and delivered to the undersigned.

 

	 	Name of Holder (print):	 

	 	(Signature):	 

	 	(By:)	 

	 	(Title:)	 

	 	Dated:

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