Document:

Exhibit
10.2

Rabbi Trust Agreement

This rabbi trust
agreement is based on the IRS model rabbi trust provisions contained in Revenue
Procedure 92-64.  Provisions from the IRS
model rabbi trust have been selected which are frequently chosen by many if not
most of Wells Fargo rabbi trust clients. 
Additional provisions have been added to reflect Wells Fargo operating
procedures and administrative requirements. 
A Company should carefully review the trust agreement with its legal
counsel to determine if it is appropriate for its particular situation.  Wells Fargo does not provide legal advice and
makes no representations concerning the tax consequences of a Company’s
execution of this Agreement.

TABLE
OF CONTENTS

	
  

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Article I.

  	
   

  	
  Establishment of Trust

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Article II.

  	
   

  	
  Payments to Plan Participants and Their
  Beneficiaries

  	
   

  	
  2

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Article III.

  	
   

  	
  Trustee Responsibility Regarding Payments to Trust
  Beneficiary When Company is Insolvent

  	
   

  	
  3

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Article IV.

  	
   

  	
  Payments to Company

  	
   

  	
  4

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Article V.

  	
   

  	
  Investment Authority

  	
   

  	
  4

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Article VI.

  	
   

  	
  Disposition of Income

  	
   

  	
  6

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Article VII.

  	
   

  	
  Accounting by Trustee

  	
   

  	
  6

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Article VIII.

  	
   

  	
  Responsibility of Trustee

  	
   

  	
  7

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Article IX.

  	
   

  	
  Compensation and Expenses of Trustee

  	
   

  	
  8

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Article X.

  	
   

  	
  Resignation and Removal of Trustee

  	
   

  	
  8

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Article XI.

  	
   

  	
  Appointment of Successor

  	
   

  	
  9

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Article XII.

  	
   

  	
  Amendment or Termination

  	
   

  	
  9

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Article XIII.

  	
   

  	
  Miscellaneous

  	
   

  	
  10

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Article XIV.

  	
   

  	
  Effective Date

  	
   

  	
  10

  

 

VWR International, Inc.

Nonqualified Deferred Compensation Plan Trust
Agreement

This
Agreement, made this May 1st, 2007, by and between VWR
International, Inc. (“Company”) and WELLS FARGO BANK, N.A.,
(“Trustee”),

WITNESSETH:

WHEREAS,
Company has adopted the nonqualified deferred compensation plan titled VWR
International, Inc. Nonqualified Deferred Compensation Plan (the “Plan”);

WHEREAS,
Company has incurred or expects to incur liability under the terms of such Plan
with respect to the individuals participating in such Plan; and 

WHEREAS,
Company wishes to establish a trust (hereinafter called “Trust”) and wishes to
contribute to the Trust assets that shall be held therein, subject to the
claims of Company’s creditors in the event of Company’s Insolvency, as herein
defined, until paid to Plan participants and their beneficiaries in such manner
and at such times as specified in the Plan;

WHEREAS,
it is the intention of the parties that this Trust shall constitute an unfunded
arrangement and shall not affect the status of the Plan as an unfunded plan
maintained for the purpose of providing
deferred compensation for a select group of management or highly compensated
employees for purposes of Title I of the Employee Retirement Income Security
Act of 1974;

WHEREAS,
it is the intention of Company to make contributions to the Trust to provide
itself with a source of funds to assist it in the meeting of its liabilities
under the Plan;

NOW,
THEREFORE, the parties do hereby establish the Trust and
agree that the Trust shall be comprised, held and disposed of as follows:

ARTICLE I

ESTABLISHMENT
OF TRUST

Section
1.1                                   Company
will deposit funding with Trustee in trust, which shall become the principal of
the Trust, to be held, administered and disposed of by Trustee as provided in
this Trust Agreement.

Section
1.2                                   The
Trust hereby established shall be irrevocable.

Section
1.3                                   The
Trust is intended to be a grantor trust, of which Company is

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the grantor,
within the meaning of subpart E, part 1, subchapter J,
chapter 1, subtitle A of the Internal Revenue Code of 1986, as
amended (the “Code”), and shall be construed accordingly.  However, Trustee does not warrant and shall
not be liable for any tax consequences associated with the Trust or
participation in the Plan.

Section
1.4                                   The
principal of the Trust and any earnings thereon shall be held separate and
apart from other funds of Company and shall be used exclusively for the uses
and purposes of Plan participants and general creditors as herein set forth.  Plan participants and their beneficiaries
shall have no preferred claim on, or any beneficial ownership interest in, any
assets of the Trust.  Any rights created
under the Plan and this Trust Agreement shall be mere unsecured contractual rights
of Plan participants and their beneficiaries against Company.  Any assets held by the Trust will be subject
to the claims of Company’s general creditors under federal and state law in the
event of Insolvency, as defined in Section 3.1.

Section
1.5                                   Company,
in its sole discretion, may at any time, or from time to time, make additional
deposits of cash or other property acceptable to the Trustee in trust with
Trustee to augment the principal to be held, administered and disposed of by
Trustee as provided in this Trust Agreement. 
Neither Trustee nor any Plan participant or beneficiary shall have any
right to compel such additional deposits. 
Notwithstanding the foregoing, upon a Change of Control as defined
herein, Company shall, as soon as possible, but in no event longer than 30 days
following the Change of Control, make an irrevocable contribution to the Trust
in an amount that is sufficient to pay each Plan participant or beneficiary the
benefits to which Plan participants or their beneficiaries would be entitled
pursuant to the terms of the Plan(s) as of the date on which the Change of
Control occurred.

Section
1.6                                   Notwithstanding
any other provision of the Plan or this Trust Agreement to the contrary,
Company shall not make any contribution to the Trust to the extent such
contribution would be treated as a transfer of property in connection with the
performance of services for purposes of Code §83 pursuant to Code §409A(b)(3)
(as amended by the Pension Protection Act of 2006) or any successor thereto.

ARTICLE II

PAYMENTS TO PLAN PARTICIPANTS AND THEIR
BENEFICIARIES

Section
2.1                                   Company
shall deliver to Trustee a schedule (the “Payment Schedule”) that indicates the
amounts payable in respect of each Plan participant (and his or her
beneficiaries), that provides a formula or other instructions acceptable to
Trustee for determining the amounts so payable, the form in which such amount
is to be paid (as provided for or available under the Plan), and the time of
commencement for payment of such amounts. 
On and after the date of a Change of Control, as defined herein, except
as otherwise provided herein, Trustee shall make payments to the Plan
participants and their beneficiaries in accordance with such Payment Schedule,
and Trustee shall in such event make provision for the reporting and withholding
of any federal and state taxes (other than FICA, FUTA or local taxes) that may
be required to be withheld with respect to the payment of benefits pursuant to
the terms of the Plan and shall pay amounts withheld to the appropriate taxing
authorities.  If applicable, Company
shall direct the Trustee to remit any FICA, FUTA or local taxes with respect to
the benefit payments to Company and Company shall have the responsibility for
determining, reporting and remitting the FICA, FUTA or local taxes to the appropriate
taxing

 2
 

authorities.  Company shall indemnify and hold harmless the
Trustee from any and all liability to which the Trustee may become subject due
to Company’s failure to properly withhold and remit FICA, FUTA or local taxes
in connection with payments from the Trust. 
(Prior to the date of a Change of Control, Trustee shall have no
obligation to make payments to Plan participants or their beneficiaries.)

Section
2.2                                   The
entitlement of a Plan participant or his or her beneficiaries to benefits under
the Plan shall be determined by Company or such party as it shall designate
under the Plan, and any claim for such benefits shall be considered and
reviewed under the procedures set out in the Plan. 

Section
2.3                                   Company
may make payment of benefits directly to Plan participants or their
beneficiaries as they become due under the terms of the Plan, and may request
reimbursement for such payments upon presentation of appropriate evidence of
payment to Trustee.  On and after the
date of a Change of Control, as defined herein, Company shall notify Trustee of
its decision to make payment of benefits directly prior to the time amounts are
payable to Plan participants or their beneficiaries.  In addition, if the principal of the Trust,
and any earnings thereon, are not sufficient to make payments of benefits in
accordance with the terms of the Plan, Company shall make the balance of each
such payment as it falls due.  Trustee
shall notify Company where principal and earnings are not sufficient.  Trustee shall not be liable for the
inadequacy of the Trust to pay all amounts due under the Plan.

ARTICLE III

TRUSTEE
RESPONSIBILITY REGARDING PAYMENTS TO TRUST BENEFICIARY WHEN COMPANY IS
INSOLVENT

Section
3.1                                   Trustee
shall cease payment of benefits to Plan participants and their beneficiaries if
the Company is Insolvent.  Company shall
be considered “Insolvent” for purposes of this Trust Agreement if (i) Company
is unable to pay its debts as they become due, or (ii) Company is subject to a
pending proceeding as a debtor under the United States Bankruptcy Code or any
comparable state or federal regulatory law.

Section
3.2                                   At
all times during the continuance of this Trust, as provided in Section 1.4, the
principal and income of the Trust shall be subject to claims of general creditors
of Company under federal and state law as set forth below.

(1)                                  The
Board of Directors and the Chief Executive Officer (or if there is no Chief
Executive Officer, the highest ranking officer) of Company shall have the duty
to inform Trustee in writing of Company’s Insolvency.  If a person claiming to be a creditor of
Company alleges in writing to Trustee that Company has become Insolvent,
Trustee shall determine whether Company is Insolvent and, pending such determination,
Trustee shall discontinue payment of benefits to Plan participants or their
beneficiaries.  

(2)                                  Unless
Trustee has actual knowledge of Company’s Insolvency or has received notice
from Company or a person claiming to be a creditor alleging that Company is
Insolvent, Trustee shall have no duty to inquire whether Company is
Insolvent.  Trustee may in all events
rely on such evidence concerning Company’s solvency as may be

 3
 

furnished to
Trustee and that provides Trustee with a reasonable basis for making a
determination concerning Company’s solvency.

(3)                                  If
at any time Trustee has determined that Company is Insolvent, Trustee shall
discontinue payments to Plan participants or their beneficiaries and shall hold
the assets of the Trust for the benefit of Company’s general creditors.  Nothing in this Trust Agreement shall in any
way diminish any rights of the Plan participants or their beneficiaries to
pursue their rights as general creditors of Company with respect to benefits
due under the Plan or otherwise.

(4)                                  Trustee
shall resume the payment of benefits to Plan participants or their
beneficiaries in accordance with Article II of this Trust Agreement only after
Trustee has been directed that Company is not Insolvent (or is no longer
Insolvent). Trustee may in all events rely on such evidence concerning
Company’s solvency (or Insolvency) as may be furnished to Trustee and that
provides Trustee with a reasonable basis for making a determination concerning
Company’s solvency.

Section
3.3                                   Provided
that there are sufficient assets, if Trustee discontinues the payment of
benefits from the Trust pursuant to Section 3.2 and subsequently resumes such
payments, the first payment following such discontinuance shall include the
aggregate amount of all payments due to Plan participants or their beneficiaries
under the terms of the Plan for the period of such discontinuance, less the
aggregate amount of any payments made to Plan participants or their
beneficiaries by Company in lieu of the payments provided for hereunder during
any such period of discontinuance.

ARTICLE IV

PAYMENTS TO COMPANY

Except as provided
in Articles II and III hereof, Company shall have no right or power to direct
Trustee to return to Company or to divert to others any of the Trust assets
before all payments of benefits have been made to Plan participants and their
beneficiaries pursuant to the terms of the Plan.  

ARTICLE V

INVESTMENT AUTHORITY

Section
5.1                                   Except
as otherwise provided herein, Company shall, prior to a Change of Control as
defined herein, have the sole power and responsibility for the management,
disposition and investment of the Trust assets, and Trustee shall comply with
written directions from Company or its designated agent, which may include a
recordkeeper for the Plan.  Trustee shall
have no duty or responsibility to review, initiate action or make
recommendations regarding the investment of Trust assets and shall retain such
assets until directed in writing to dispose of them.  Prior to issuing any such directions, Company
shall certify to Trustee the person(s) at Company or its agent who have the
authority to issue such directions.  On
and after the date of a Change of Control, Trustee shall have the sole and
absolute discretion to manage, dispose of, and invest the Trust assets.

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Section
5.2                                   In
the administration of the Trust, Trustee shall have the following powers;
however, prior to a Change of Control as defined herein, all powers regarding
the investment of the Trust shall be exercised solely pursuant to direction of
Company or its delegated agent or, if applicable, an Investment Manager, as
defined herein, unless Trustee has been properly delegated investment authority
pursuant to Section 5.4:

(1)                                  To
hold assets of any kind, including shares of any registered investment company,
whether or not Trustee or any of its affiliates provides investment advice or
other services to such company and receives compensation for the services
provided;

(2)                                  To
sell, exchange, assign, transfer and convey any security or property held in
the Trust, at public or private sale, at such time and price and upon such
terms and conditions (including credit) as directed;

(3)                                  To
invest and reinvest assets of the Trust (including accumulated income) as
directed;

(4)                                  To
vote, tender or exercise any right appurtenant to any stock or securities held
in the Trust, as directed;

(5)                                  To
consent to and participate in any plan for the liquidation, reorganization,
consolidation, merger or any similar action of any corporation, any security of
which is held in the Trust, as directed;

(6)                                  To
sell or exercise any “rights” issued on any securities held in the Trust, as
directed;

(7)                                  To
cause all or any part of the assets of the Trust to be held in the name of
Trustee (which in such instance need not disclose its fiduciary capacity) or,
as permitted by laws, in the name of any nominee, and to acquire for the Trust
any investment in bearer form, but the books and records of the Trust shall at
all times show that all such investments are part of the Trust and Trustee
shall hold evidence of title to all such investments;

(8)                                  To
make such distributions in accordance with the provisions of this Trust
Agreement;

(9)                                  To
hold a portion of the Trust for the ordinary administration and for the
disbursement of funds in cash, without liability for interest thereon, for such
period of time as necessary, notwithstanding that Trustee or an affiliate of
Trustee may benefit directly or indirectly from such uninvested amounts.  It is acknowledged that Trustee’s handling of
such amounts is consistent with usual and customary banking and fiduciary
practices, and any earnings realized by Trustee or its affiliates will be
compensation for its bank services in addition to its regular fees; and

(10)                            To
invest in deposit products of Trustee or its affiliates, or other bank or similar
financial institution, subject to the rules and regulations governing such
deposits, and without regard to the amount of such deposit, as directed.

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Section
5.3                                   From
time to time prior to a Change of Control as defined herein the Company may
appoint one or more investment managers who shall have investment management
and control over all or a portion of the assets of the Trust (“Investment
Managers”).  The Company shall notify the
Trustee in writing of the appointment of the Investment Manager.  In the event more than one Investment Manager
is appointed, the Company shall determine which assets shall be subject to
management and control by each Investment Manager and shall also determine the
proportion in which funds withdrawn or disbursed shall be charged against the
assets subject to each Investment Manager’s management and control.  Such Investment Manager shall, prior to a
Change of Control, direct Trustee as to the investment of assets and any
voting, tendering and other appurtenant rights of all securities held in the
portion of the Trust over which the Investment Manager is appointed.  Trustee shall have no duty or responsibility
to review, initiate action or make recommendations regarding the investment of
the Trust assets and shall retain such assets until directed in writing to
dispose of them.

Section
5.4                                   Company
may delegate to Trustee the responsibility to manage all or a portion of the
Trust prior to a Change of Control as defined herein if Trustee agrees to do so
in writing.  Upon written acceptance of
that delegation, Trustee shall have full power and authority to invest and
reinvest the Trust in investments as provided herein, subject to any investment
guidelines provided by Company.

Section
5.5                                   Subject
to the foregoing provisions of this Article V, Trustee may invest in securities
(including stock or rights to acquire stock) or obligations issued by
Company.  All rights associated with
assets of the Trust shall be exercised by Trustee or the person designated by
Trustee, and shall in no event be exercisable by or rest with Plan participants
or their beneficiaries.  Company shall
have the right at any time and from time to time, in its sole discretion, to
substitute assets of equal fair market value for any asset held by the
Trust.  This right is exercisable by
Company in a nonfiduciary capacity without the approval or consent of any
person in a fiduciary capacity. 

ARTICLE VI

DISPOSITION OF INCOME

During the term of
this Trust, all income received by the Trust, net of expenses and taxes, shall
be accumulated and reinvested.

ARTICLE VII

ACCOUNTING BY TRUSTEE

Trustee shall keep
accurate and detailed records of all investments, receipts, disbursements, and
other transactions required to be made, including such specific records as
shall be agreed upon in writing between Company and Trustee.  Within 60 days following the close of each
calendar year and within 90 days after the removal or resignation of Trustee,
Trustee shall deliver to Company a written account of its administration of the
Trust during such year or during the period from the close of the last
preceding year to the date of such removal or resignation, setting forth all
investments, receipts, disbursements and other transactions effected by it,
including a description of all securities and investments purchased

 6
 

and sold with the
cost or net proceeds of such purchases or sales (accrued interest paid or
receivable being shown separately), and showing all cash, securities and other
property held in the Trust at the end of such year or as of the date of such
removal or resignation, as the case may be. Trustee’s accounting, if not
objected to within 60 days of it being furnished to Company, shall be deemed
accepted by Company. 

ARTICLE VIII

RESPONSIBILITY OF TRUSTEE

Section
8.1                                   Trustee
shall act with the care, skill, prudence and diligence under the circumstances
then prevailing that a prudent person acting in like capacity and familiar with
such matters would use in the conduct of an enterprise of a like character and
with like aims; provided, however, that Trustee shall incur no liability to any
person for any action taken pursuant to a direction, request or approval given
by Company which is contemplated by and consistent with the terms of this Trust
and is given in writing by Company.  Company
shall indemnify and hold harmless the Trustee and its officers, employees and
agents from and against all liabilities, losses and claims (including
reasonable attorneys’ fees and costs of defense) for actions taken or omitted
by Trustee in accordance with the terms of this Trust.  In the event of a dispute between Company and
a party, Trustee may apply to a court of competent jurisdiction to resolve the
dispute.

Section
8.2                                   If
Trustee undertakes or defends any litigation arising in connection with this Trust,
Company agrees to indemnify Trustee against Trustee’s costs, expenses and
liabilities (including, without limitation, attorneys’ fees and expenses)
relating thereto and to be primarily liable for such payments.  If Company does not pay such costs, expenses
and liabilities in a reasonably timely manner, Trustee may obtain payment from
the Trust.

Section
8.3                                   Trustee
may consult with legal counsel (who may also be counsel for Company generally)
with respect to any of its duties or obligations hereunder, and Trustee may
hire agents, accountants, actuaries, investment advisors, financial consultants
or other professionals to assist it in performing any of its duties or
obligations hereunder.  Company shall pay
the expenses for services by such individuals or entities, and if Company does
not pay such expenses in a reasonably timely manner, Trustee may obtain payment
from the Trust.

Section
8.4                                   Trustee
shall have, without exclusion, all powers conferred on trustees by applicable
law, unless expressly provided otherwise herein; provided, however, that if an
insurance policy is held as an asset of the Trust, Trustee shall have no power
to name a beneficiary of the policy other than the Trust, to assign the policy
(as distinct from conversion of the policy to a different form) other than to a
successor Trustee, or to loan to any person the proceeds of any borrowing
against such policy.  Trustee shall not
be liable for the failure or omission of any insurance company for any reason
to pay any benefits or furnish any services under the policies or
contracts.  Company shall have the sole
responsibility to determine whether any insured under any insurance policy held
in the Trust is deceased.

 7
 

Section
8.5                                   Notwithstanding
the provisions of Section 8.4, Trustee may loan to Company the proceeds of any
borrowing against an insurance policy held as an asset of the Trust.

Section
8.6                                   Notwithstanding
any powers granted to Trustee pursuant to this Trust Agreement or to applicable
law, Trustee shall not have any power that could give this Trust the objective
of carrying on a business and dividing the gains therefrom, within the meaning
of section 301.7701-2 of the Procedure and Administrative Regulations
promulgated pursuant to the Code.

Section
8.7                                   Any
electronic communication, including facsimile and e-mail, received by Trustee
from an address that Trustee reasonably believes to be that of a duly
authorized representative of Company shall be deemed to be in writing and
signed on behalf of Company by a duly authorized representative of Company, and
Trustee shall be as fully protected under the Trust Agreement and applicable
law as if such electronic communication had been an originally signed writing.

ARTICLE IX

COMPENSATION AND EXPENSES OF TRUSTEE

Trustee shall be
entitled to reasonable compensation for the services it renders under this
Trust.  Company shall pay all Trustee’s
fees and expenses as outlined in the separate fee agreement.  If not so paid within a reasonable time, the
fees and expenses, including, but not limited to, those expenses referenced in
Article VIII above, shall be paid from the Trust.  If, on and after the date of a Change of
Control, the payment of such fees and expenses from the Trust reduces the Trust
assets below the amount necessary to pay benefits accrued as of the date of the
Change of Control, the Trustee may institute an action to collect such amount
from the Company as is necessary to eliminate such shortfall.

ARTICLE X

RESIGNATION AND REMOVAL OF TRUSTEE

Section
10.1                            Trustee
may resign at any time by written notice to Company, which shall be effective
30 days after receipt of such notice unless Company and Trustee agree
otherwise.

Section
10.2   Trustee may be
removed by Company on 30 days’ notice or upon shorter notice accepted by
Trustee.

Section
10.3   Upon a Change of
Control, as defined herein, Trustee may not be removed by Company for 10 years.

Section
10.4   If Trustee
resigns within 10 years after a Change of Control, as defined herein, Company
may select a successor Trustee, which must be approved by a majority of the
Plan participants (disregarding for this purpose any individuals who become
participants after the date of the Change of Control), in accordance with the
provisions of

 8
 

Section 11.1 prior
to the effective date of Trustee’s resignation or removal.  If Company does not so select a successor
Trustee and obtain approval from the majority of such Plan participants,
Trustee shall apply to a court of competent jurisdiction for the appointment of
a successor trustee or for instructions.

Section
10.5                            Upon
resignation or removal of Trustee and appointment of a successor Trustee, all
assets shall subsequently be transferred to the successor Trustee.  The transfer shall be completed within 120
days after receipt of all information reasonably required by Trustee to
transfer assets to the successor Trustee, unless Company extends the time
limit.

Section
10.6                            If
Trustee resigns or is removed, a successor shall be appointed, in accordance
with Article XI, by the effective date of resignation or removal under Sections
10.1 or 10.2.  If no such appointment has
been made, Trustee may apply to a court of competent jurisdiction for
appointment of a successor or for instructions. 
All expenses of Trustee in connection with the proceeding shall be
allowed as administrative expenses of the Trust.

ARTICLE XI

APPOINTMENT OF SUCCESSOR

Section
11.1                            If
Trustee resigns or is removed in accordance with Section 10.1 or 10.2,
Company may, subject to the requirements of Section 10.4 if applicable, appoint
any third party, such as a bank trust department or other party that may be
granted corporate trustee powers under state law, as a successor to replace
Trustee upon resignation or removal.  The
appointment shall be effective when accepted in writing by the new Trustee, who
shall have all of the rights and powers of the former Trustee, including
ownership rights in the Trust assets. 
The former Trustee shall execute any instrument necessary or reasonably
requested by Company or the successor Trustee to evidence the transfer.

Section
11.2                            The
successor Trustee need not examine the records and acts of any prior Trustee
and may retain or dispose of existing Trust assets, subject to Articles VII and
VIII hereof.  The successor Trustee shall
not be responsible for, and Company shall indemnify and defend the successor
Trustee from, any claim or liability resulting from any action or inaction of
any prior Trustee or from any other past event, or any condition existing at
the time it becomes successor Trustee.

ARTICLE XII

AMENDMENT OR TERMINATION

Section
12.1                            This
Trust Agreement may be amended only by a written instrument executed by and
between Trustee and Company. 
Notwithstanding the foregoing, no such amendment shall conflict with the
terms of the Plan, as determined by Company, or shall make the Trust revocable.

Section
12.2                            The
Trust shall not terminate until the date on which Plan participants and their
beneficiaries are no longer entitled to benefits pursuant to the terms of the
Plan.  Upon termination of the Trust, any
assets remaining in the Trust shall be returned to

 9
 

Company.

Section
12.3                            Upon
written approval of all participants or beneficiaries entitled to payment of
benefits pursuant to the terms of the Plan, Company may terminate this Trust
prior to the time all benefit payments under the Plan have been made.  All assets in the Trust at termination shall
be returned to Company.

Section
12.4                            Notwithstanding
the foregoing, this Trust Agreement may not be amended on or after the date of
a Change of Control, as defined herein, without the consent of all Plan
participants and beneficiaries of deceased participants, except to the extent
such amendment is required by law.

ARTICLE XIII

MISCELLANEOUS

Section
13.1                            Any
provision of this Trust Agreement prohibited by law shall be ineffective to the
extent of any such prohibition, without invalidating the remaining provisions
hereof.

Section
13.2                            Benefits
payable to Plan participants and their beneficiaries under this Trust Agreement
may not be anticipated, assigned (either at law or in equity), alienated,
pledged, encumbered or subjected to attachment, garnishment, levy, execution or
other legal or equitable process.

Section
13.3                            This
Trust Agreement shall be governed by and construed in accordance with the laws
of the Commonwealth of Pennsylvania, U.S.A.

Section
13.4                            For
purposes of this Trust, “Change of Control” shall mean a “change in control
event” as defined in Treasury regulations or other guidance issued pursuant to
Code §409A, unless the Company or its successor enters into a binding written
agreement in connection with such change in control event to continue the Plan
and Trust Agreement in effect in accordance with their terms immediately prior
to such change in control event (except to the extent required by applicable law)
for a period of 10 years following such change in control event.  If, prior to the end of such period, the
Company or its successor fails to continue the Plan and Trust Agreement in
effect pursuant to such agreement, a Change of Control shall be deemed to occur
on the date such failure first occurs.

Section
13.5                            Trustee
shall be entitled to rely on any information furnished to it by Company or any
other party from whom Trustee is entitled to any information.  If any provision of this Trust conflicts with
any provision of the Plan, the provisions of this Trust shall control.

Section
13.6                            If
at any time the Plan fails to meet the requirements of the Internal Revenue
Code section 409A, the Company shall determine, withhold, report and remit all
taxes thereunder, as applicable.

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ARTICLE XIV

EFFECTIVE DATE

The effective date
of this Trust Agreement shall be May 1, 2007.

IN
WITNESS WHEREOF, Company and Trustee have caused this
Agreement to be executed by individuals thereunto duly authorized as of the day
and year first above written.

	
  VWR International, Inc.

  	
   

  	
  WELLS FARGO BANK, N.A., Trustee

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
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  By

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title

  	
   

  	
   

  	
   

  	
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 11Exhibit
10.19

 

PURCHASE AGREEMENT

by and between

NATROL REAL
ESTATE, INC.

AND NATROL REAL ESTATE II, INC.

as Seller,

and

REALTY ASSOCIATES ADVISORS, LLC

as Purchaser

	
   

  	
  Premises:

  	
  9453 Owensmouth Avenue

  
	
   

  	
   

  	
  21411 Prairie Street

  
	
   

  	
   

  	
  Chatsworth, California

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Date:

  	
  March 29, 2007

  

 

 

PURCHASE AGREEMENT

 

THIS PURCHASE
AGREEMENT (this “Contract”) is made and entered into as of the Effective
Date by and between NATROL REAL ESTATE, INC., a California corporation (“NRE”)
and NATROL REAL ESTATE II, INC., a California corporation (“NRE II” and,
collectively with NRE, “Seller”), and REALTY ASSOCIATES ADVISORS, LLC, a
Delaware limited liability company and/or its permitted successors, affiliates
and assigns (“Purchaser”).  As
used herein, the “Effective Date” shall mean the date the Escrow Agent
(as hereinafter defined) has received an original counterpart of this Contract
executed by both Seller and Purchaser, as evidenced by the Escrow Agent’s
signature below.

ARTICLE I

Property

Section
1.01.          Property.  Seller
hereby agrees to sell and convey to Purchaser, and Purchaser hereby agrees to
purchase from Seller, upon the terms and conditions set forth herein, the
following properties and assets:

(a)           Those certain tracts of real property
located in Los Angeles, California more particularly described in Exhibit A
attached hereto and made a part hereof for all purposes, together with, to the
extent owned by Seller (i) all and singular the rights and appurtenances
pertaining to such real property, including any easements, and all right, title
and interest of Seller in and to adjacent streets, alleys and rights-of-way,
and (ii) any and all water, water rights or similar rights or privileges
(including tap rights) appurtenant to or used in connection with the ownership
or operation of such real property (all of the foregoing being hereinafter
collectively referred to as the “Real Property”).

(b)           All improvements, structures and
fixtures now constructed and completed with respect to and situated on the Real
Property, including without limitation those two certain industrial buildings
and related facilities – one located at 9453 Owensmouth Avenue and containing
approximately 132,600 square feet (the “O Building”) and the other
located at 21411 Prairie Street and containing approximately 93,120 square feet
(the “P Building”), together with all parking areas, loading dock
facilities, landscaping and other improvements, structures and fixtures (all of
the foregoing being hereinafter collectively referred to as the “Improvements”).

(c)           All parking agreements, rooftop lease
agreements, and all contract rights approved by Purchaser and all other
intangible rights which are appurtenant to the Real Property and/or the
Improvements, including the right to use of any trade name associated with the
Improvements (other than the name “Natrol” either individually or in
combination with any other name) and any and all derivations of such name (all
of the foregoing being hereinafter collectively referred to as the “Intangible
Property”).

 1
 

(d)           All heating, plumbing, ventilation
and air conditioning systems and equipment, carpet, tile, floor coverings,
security devices, sprinkler systems and all other floor and wall coverings,
lighting fixtures and things which have been affixed to the real property and
cannot be removed without material damage, and building systems used in
connection with the operation of the Improvements separate and apart from
Seller’s (or any Seller’s affiliates’) business operations (all of the
foregoing being hereinafter collectively referred to as the “Personal Property”).

All of the
foregoing items purchased under this Contract are collectively referred to as
the “Property”.

Section
1.02.  Excluded Personal Property.
The Personal Property excludes all furniture, equipment, racking and storage
systems, inventory, objects of art and other personal property not described
under Section 1.01(d).

ARTICLE II

Purchase Price

Section
2.01.          Purchase Price.  The
purchase price (the “Purchase Price”) is an amount equal to TWENTY
SIX MILLION AND NO/100 DOLLARS ($26,000,000.00).  The Purchase Price will be paid by Purchaser
to Seller at the Closing (as hereinafter defined) in cash or other immediately
available wire transferred funds.

Section
2.02.          Escrow Holder.  Purchaser
will deposit the amount the Purchase Price with Fidelity National Title
Insurance Company — Helen Fonville (the “Escrow Agent”) in sufficient
time to ensure that the amount of the Purchase Price, plus Purchaser’s share of
prorations and expenses, are immediately available to the Escrow Agent at the
Closing.  The Escrow Agent must hold the
Purchase Price in an interest-bearing account at a federally insured banking
institution acceptable to Purchaser and Seller, with all interest being paid to
Purchaser or Seller, as the case may be, in accordance with the terms of this
Contract.

ARTICLE III

Review Items

Section
3.01.            Survey.  Prior to execution of this Contract,
Purchaser approved a new or recertified survey of the Real Property and the
Improvements (the “Survey”).  If
the legal description on the Survey differs from that attached hereto as Exhibit
A, Seller agrees to execute a “quitclaim deed” to Purchaser conveying
whatever interest Seller might own in the legal description contained on the
Survey.

Section
3.02.          Title Review Items.  Prior
to execution of this Contract, Purchaser approved the preliminary title report
of the Property (the “Title Report”), issued by the Fidelity 

 2
 

National Title
Company (the “Title Company”) attached hereto as Exhibit G, together
with legible copies of all items, matters, and documents referred to in the
Title Report.

Section 3.03.          Other Review Items.

(a)           Property Information.  Prior to execution of this Contract, Seller
has delivered to Purchaser copies of the documents described in Schedule 3.03
which are in Seller’s possession or control (collectively, the “Property
Information”), the receipt of which is hereby acknowledged by Purchaser.

(b)           Release of Seller.  Except as set forth in this Contract, and
whether Purchaser avails itself of the opportunity to review the Property
Information, Purchaser expressly acknowledges that the Property Information has
been made available to Purchaser solely as a courtesy and without any
representation or warranty of any kind. 
As part of any election by Purchaser to accept and use the Property
Information as such use is defined herein, and as consideration for Seller’s
execution of this Contract and agreement to make the Property Information
available to Purchaser, Purchaser hereby unconditionally and irrevocably waives
any and all actual or potential rights, and releases Seller from any and all
claims, causes of action or demands Purchaser might have against Seller
regarding any form of warranty, express or implied, of any kind or type, relating
to the Property, including without limitation, any liability under the
Comprehensive Environmental Response, Compensation & Liability Act (“CERCLA”
or “Superfund”) or state equivalents. 
Such waiver is absolute, complete, total and unlimited in every
way.  Such waiver includes, but is not
limited to, a waiver of express warranties, implied warranties, strict
liability rights and claims of every kind and type regarding the Property
Information and/or the physical and/or environmental condition of the Property
which were not or are not discoverable, and all other existing or later created
or conceived of strict liability or strict liability type claims and rights
regarding the Property Information and/or environmental condition of the
Property.  Without limiting the
generality of the foregoing and except with respect to Seller’s express
representations, warranties and covenants contained in this Contract, Purchaser
completely, irrevocably and unconditionally releases and forever discharges
Seller of and from any and all claims and demands whatsoever, in law or equity,
whether such claims are presently known or unknown, direct or indirect, fixed
or contingent, which Purchaser has had, now has or may claim to have against
Seller caused by or arising out of the presence or effect of hazardous or toxic
substances on, in or under the Property or any other environmental condition
thereon, or the provision of the Property Information and other information to
Purchaser.  Nothing
contained herein (including the foregoing release) shall apply to, or otherwise
release Natrol (as hereinafter defined) from any liability under, the Natrol
Leases (as hereinafter defined).

(c)           Adequacy of Opportunity to Inspect.  Purchaser and Seller acknowledge and agree
that, pursuant to that certain Agreement Concerning Property dated as of March
5, 2007 (the “Agreement Concerning Property”), Purchaser has conducted
its due diligence investigation of the property, and based thereon has approved
same and has 

 3
 

executed and delivered this Contract.  Therefore, Purchaser has had time to conduct
due diligence with regard to the Property Information, the environmental
condition of the Property, the physical condition of the Property, and all
matters relating to zoning, construction, utilities, permits, plans, permitted
uses of the Property, the status of title, and applicable laws, and has
approved same in all respects.  Except as
set forth in this Contract, no representations, inducements, promises, agreements,
assurances, oral or written, concerning the Property, the Property Information,
or any aspect of applicable law, have been made by Seller, or relied upon by
Purchaser.

(d)           No Seller Liability re Property
Information.  Purchaser acknowledges
that the Property Information and any other information delivered by Seller to
Purchaser, and any and all other matters concerning the condition, suitability,
integrity, compliance with law, or other attributes or aspects of the Property
Information and the Property, has been furnished to Purchaser solely as a
courtesy, and that, except as otherwise provided in this Contract, Seller
assumes no responsibility or liability for the accuracy, adequacy or
completeness of the investigations upon which the Property Information and/or
any other information is based, and specifically disclaims any liability for
the use of or reliance on any of the Property Information or other information.

(e)           No Verification.  Purchaser acknowledges that Seller has taken
no action on Purchaser’s behalf to verify the accuracy, adequacy or
completeness of the investigations upon which the Property Information or any
other information is based and/or any statements or other information set forth
therein, of any statements or other information contained in the Property
Information or other information, nor any method used to compile the
information in the Property Information or other information, nor the
qualifications of the person(s) preparing such Property Information or other
information.

(f)            No Representation of Accuracy;
Confidentiality.  Seller gives no
representation or warranty as to, and assumes no responsibility for, the
accuracy or completeness of the Property Information, except as otherwise
provided in this Contract.  The Property
Information, other information and associated items and contents made available
pursuant to this Agreement other than instruments that are a matter of public
record, shall be defined herein as “Confidential Information” despite
whether such Property Information, other information or associated items and
contents are so specifically identified by Seller.  Without Seller’s prior written consent,
Purchaser (i) shall not divulge to any third party, including but not limited
to any governmental agency, any of the Confidential Information and shall not
use the Confidential Information in Purchaser’s business, except in connection
with the evaluation of the Property or the specific transaction; (ii) shall
ensure that the Confidential Information is disclosed only to such of Purchaser’s
officers, directors, employees, consultants, investors and lenders as have
actual need for the Confidential Information in evaluation the Property; and
(iii) shall use commercially reasonable efforts to prevent any further
disclosure of the Confidential Information. 
Purchaser’s covenants and agreement contained in this Section 3.03(f)
shall terminate and be of no further force or effect from and after Purchaser’s
acquisition of the Property and the Closing.

 4
 

ARTICLE IV

Seller’s Obligation to Remove Certain Liens.

Section
4.01.          Seller’s Obligation to
Remove Certain Liens. 
Notwithstanding anything else to the contrary in this Contract, Seller
must in any and all events remove at or prior to the Closing any deed of trust
liens created, suffered or incurred against the Property by Seller, and Seller’s
failure or refusal to remove same shall be a default under this Contract.

ARTICLE V

Good and Marketable Title

Section
5.01.          Conveyance.  At
the Closing, Seller will convey fee simple title to the Real Property and the
Improvements to Purchaser by the Deed and title to the Personal Property and
the Intangible Property by the Bill of Sale (as hereinafter defined), free and
clear of any and all deeds of trust, mortgages or other liens or indebtedness,
encumbrances, conditions, easements, rights-of-way, assessments and
restrictions, except for the exceptions reflected in the Title Report and on
the Survey (collectively, the “Permitted Exceptions”).

Section
5.02.          Owner Policy.  At
the Closing, Seller shall deliver to Purchaser, at Seller’s sole cost and
expense, an CLTA Form Owner Policy of Title Insurance (the “Owner Policy”)
issued by the Title Company in Purchaser’s favor in the amount of the Purchase
Price, insuring Purchaser’s fee simple title to the Property subject only to
the Permitted Exceptions.  Purchaser has
the right, at Purchaser’s cost, to request that the Owner Policy include ALTA
extended coverage, together with such endorsements as Purchaser reasonably
deems necessary.

ARTICLE VI

Closing

Section
6.01.          Closing.  The
purchase and sale of the Property (the “Closing”) will be held through
escrow at the Escrow Agent’s offices, and will occur, subject to satisfaction
of all conditions precedent set forth in this Contract, at 11:00 a.m. Los
Angeles, California, time on the third (3rd) business day following the
Effective Date (the “Closing Date”).  Seller shall have the one-time right, by
delivery of written notice to Purchaser prior to the Effective Date (which
notice, in order to be effective, must be accompanied by an original of this
Contract signed by Seller), to extend the Closing Date in order to accommodate
the schedule for Seller’s defeasance of the existing liens against the
Property, but in no event shall Seller have the right to extend the Closing
Date in excess of thirty (30) days beyond the originally scheduled Closing
Date.

 5
 

Section
6.02.          Seller’s Obligations.  At
the Closing, Seller shall execute and deliver to Purchaser, and/or cause the
execution and delivery by all parties other than Purchaser of, the following:

(a)           That certain grant deed (the “Deed”)
in the form attached hereto as Exhibit B and made a part hereof for
all purposes.

(b)           That certain blanket conveyance, bill
of sale and assignment (“Bill of Sale”) in the form attached
hereto as Exhibit C and made a part hereof for all purposes, which
Bill of Sale also includes an assignment of that certain Standard
Industrial/Commercial Multi-Tenant Lease-Net dated December 21, 2006 (the “Currie
Lease”), by and between NRE II, as landlord and Currie Technologies, Inc.,
a Nevada corporation (“Currie”), as tenant, and covering approximately
51,309 square feet in the O Building.

(c)           That certain affidavit (the “FIRPTA
Affidavit”) in the form attached hereto as Exhibit D and made a
part hereof for all purposes.

(d)           To the extent necessary to permit the
Title Company to remove any exception in the Owner Policy for mechanics’ and
materialmens’ liens and general rights of parties in possession, an affidavit
as to debts and liens and parties in possession executed by Seller, made to
Purchaser and the Title Company and in a form acceptable to the Title Company,
along with any other items reasonably required by the Title Company.

(e)           Subject to the terms of Section 9.03,
Seller’s certification that all representations and warranties made by Seller
under this Contract are true, complete and correct in all material respects as
of the Closing Date.

(f)            Those two certain leases, one
covering all of the P Building and one covering a portion of the O Building,
each by and between Purchaser, as landlord and Natrol, Inc. (“Natrol”),
as tenant, in the respective forms attached hereto as Exhibit E and
made a part hereof for all purposes (collectively, the “Natrol Leases”).

(g)           Appropriate evidence of Seller’s
authority to consummate the transactions contemplated by this Contract that is
reasonably requested by Purchaser or the Title Company.

Section
6.03.          Purchaser’s Obligations.  At
the Closing, Purchaser shall deliver the Purchase Price to Seller in cash or by
wire transfer of immediately available funds, and shall execute and deliver to
Seller the following:

(a)           The Natrol Leases.

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(b)           Appropriate evidence of Purchaser’s
authority to consummate the transactions contemplated by this Contract that is
reasonably requested by Seller or the Title Company.

(c)           The Bill of Sale, which
includes an assumption of the Currie Lease, subject to the terms therein.

Section
6.04.          Possession.  Possession of the Property must be delivered
by Seller to Purchaser at the Closing, subject only to the Leases and other
Permitted Exceptions.

ARTICLE VII

Closing Adjustments

Section
7.01.          General Prorations.  There
will be no proration for any taxes, assessments and operating expenses
applicable to the P Building, it being agreed that, with respect to such
portion of the Property (i) Seller is solely liable for the payment thereof as
owner of the Property for the period prior to the Closing; and (ii) Natrol will
be solely liable for the payment thereof as a tenant under one of the Natrol
Leases for the period from and after the Closing.  With respect to the O Building, taxes,
assessments and operating expenses shall be prorated as of the Closing, with
Seller being responsible for the payment thereof as owner of the Property for
the period prior to the Closing, and Purchaser being responsible for the
payment thereof for the period from and after the Closing (subject to the
obligations of Natrol, as a tenant under the applicable Natrol Lease, and
Currie, as a tenant under the Currie Lease, for payment of their applicable share
thereof).  Any rent paid under the Currie
Lease will be prorated at the Closing. 
At the Closing, Purchaser will receive a credit for the first
installment of Rent due under the Natrol Leases (i.e., Rent for the period from
the Closing Date through the last day of the first full calendar month
following the calendar month in which the Closing occurs; e.g., if the Closing
occurs April 28, 2007, the Rent due at the Closing would be for the period
April 28 through May 31, 2007), together with the security deposit required to
be delivered thereunder.  If Seller has
failed to pay any Currie Leasing Costs (as hereinafter defined), Purchaser will
receive a credit therefore at the Closing and, in such event, Purchaser will assume
the obligation to pay the amount so credited when due, release Seller from its
obligation to do so and indemnify Seller in connection therewith.  All apportionments are subject to
post-closing adjustments as necessary to reflect later relevant information not
available at the Closing and to correct any errors made at the Closing with
respect to such apportionments.  As used
herein, the term “Currie Leasing Costs” means all leasing commissions,
tenant finish cost and other costs associated with the Currie Lease.

Section
7.02.          Transaction Costs.  Seller shall be responsible for (a) all
attorneys’ fees and expenses of counsel to Seller; (b) all costs incurred to
defease or otherwise repay any liens; (c) the cost of the Owner Policy
(other than any ALTA extended coverage or endorsements thereto requested by
Purchaser); and (d) all State, County and local documentary stamp, transfer or
other taxes payable upon the transfer of the Property.  Purchaser shall be responsible for (i) the
cost of ALTA extended coverage and any Owner Policy endorsements requested by
Purchaser; 

 7
 

(ii) all attorneys’
fees and expenses of counsel to Purchaser; and (iii) any inspection or other
cost incurred by Purchaser.  All other
transaction costs actually incurred, including, without limitation, any escrow
and other charges of the Escrow Agent, and recording fees shall be apportioned
in accordance with local custom for commercial sales in Los Angeles County,
California and in the absence of any such custom, shall be paid one-half by
Seller and one-half by Purchaser.

Section
7.03.          Brokerage Commissions.  At
the Closing, Seller agrees to pay any and all fees or other commissions due and
payable to CB Richard Ellis, Inc. (“Broker”) in connection with the
transactions described herein pursuant to a separate written agreement between
Seller and Broker.  Seller agrees to
indemnify, protect, defend and hold Purchaser harmless from and against all
claims by Broker, or any person claiming by through or under Broker, for such
fees or commissions.  Except for Broker,
Seller and Purchaser acknowledge and agree that neither has dealt with any
other real estate broker, agent or salesman, and any other fees or real estate
commissions occasioned by the execution and/or consummation of this Contract
shall be the sole responsibility of the party contracting therefor (or alleged
to have contracted for), and such party agrees to indemnify, protect, defend
and hold harmless the other party from any and all claims for such other fees
or real estate commissions.

Section
7.04.          Survival.  The
terms of Section 7.01 and Section 7.03 shall survive the termination of this
Contract on the Closing and delivery of the Deed.

ARTICLE VIII

Termination and Remedies

Section
8.01.          Purchaser’s Default.  If
Purchaser fails to close for any reason, except Seller’s default or the
permitted termination of this Contract by Purchaser or Seller as herein
expressly provided, Seller shall be entitled, as Seller’s sole and exclusive
remedy, to terminate this Contract and require that Purchaser pay to Seller the
sum of Five Hundred Thousand Dollars ($500,000.00), within two (2) business
days after such termination.  Seller and
Purchaser acknowledge and agree that delivery of said sum by Purchaser shall be
deemed liquidated damages for Purchaser’s failure to close escrow in breach of
this Contract, it being further agreed that the actual damages to Seller in the
event of such breach are impractical to ascertain and said sum is a reasonable
estimate thereof.  Seller has no right to
specifically enforce Purchaser’s obligations under this Contract nor to seek or
otherwise collect any actual, out-of-pocket, lost profit, punitive,
consequential, treble, or other damages from or against Purchaser.  In no event shall any officer, director or
employee of Purchaser or its partners be personally liable for any of Purchaser’s
obligations under this Contract or the documents to be delivered at the
Closing.  This Section 8.01 shall not
limit Seller’s remedies for Purchaser’s breach of any other covenant of this
Contract which expressly survives the termination hereof; provided, however, in
no event shall Purchaser be liable for any punitive or consequential
damages.  If said liquidated damages are not paid by Purchaser when
due, Seller shall, in addition to Seller’s other rights and remedies, be
entitled to interest thereon at the rate of 10% per annum from the date due until the date paid.

 8
 

Section
8.02.          Seller’s Default.  If
Seller fails to close for any reason, except Purchaser’s default or the
permitted termination of this Contract by either Seller or Purchaser (other
than under this Section 8.02) as herein expressly provided, Purchaser shall be
entitled to either (a) terminate this Contract upon written notice to Seller
and to request the Escrow Agent to return the Purchase Price, together with all
accrued interest thereon, to Purchaser or (b) pursue an action to enforce
specific performance of Seller’s obligations under this Contract.  Purchaser has no right, except as provided in
the next sentence, to seek damages against Seller.  If Seller’s default is willful, Purchaser
may, in lieu of specific performance (but not in lieu of the return of the
Purchase Price), collect its actual out-of-pocket damages from Seller, not to
exceed $100,000.  In no event shall any
officer, director, agent or employee of Seller be personally liable for any of
Seller’s obligations under this Contract or the documents to be delivered at
the Closing.  This Section 8.02 shall not
limit Purchaser’s remedies for Seller’s breach of any other covenant of this
Contract which expressly survives the termination hereof; provided, however, in
no event shall Seller be liable for any punitive or consequential damages.

ARTICLE IX

Representations, Warranties and Covenants

Section
9.01.          Seller’s Representations.  Seller
hereby represents and warrants to Purchaser, as of the date hereof and as of
the Closing Date, except as set forth in that certain schedule (the “Disclosure Schedule”)
attached hereto as Exhibit F and made a part hereof for all
purposes (which shall be deemed to include all Property Information actually
delivered to Purchaser under Section 3.03 and made available to Purchaser under
Section 3.04), as follows:

(a)           Seller has no knowledge of any aspect
or condition of the Property which materially violates applicable laws,
regulations, codes or covenants, conditions or restrictions, or of improvements
or alterations made without a permit where one was required, or of any
unfulfilled or directive of any applicable governmental agency requiring any
investigation, remediation, repair, maintenance or improvement to be performed
to the Property.

(b)           There is, to Seller’s knowledge, no
pending or threatened litigation, arbitration, governmental inquiry, claim,
condemnation or sale in lieu thereof, that would affect the Property or the
right to use, lease or otherwise operate same.

(c)           Except as reflected in the Title
Report, Seller has received no notice and has no knowledge of any pending
public improvements, liens or special assessments to be made in respect of, or
assessed against, the Property by any governmental authority.

(d)           Seller has made delivered or
otherwise made available to Purchaser true, complete and correct copies of all
material agreements affecting the Property or any portion thereof.  Seller is not in material default under any
such agreements, nor is there, to Seller’s knowledge, any condition or fact
which with notice or passage of time, or both, would constitute a default by
Seller thereunder.  An affiliate of
Seller currently 

 9
 

occupies a portion of the Property.  Except for the Currie Lease and the Natrol
Leases, no leases will be in effect at the Property upon the Closing.

(e)           To Seller’s knowledge, the
information made available to Purchaser in accordance with Section 3.03 is
correct in all material respects and viewed as a whole, reflects accurately, in
all material respects, the actual history of ownership and operation of the
Property during the respective periods of time covered thereby.

(f)            There are no attachments,
executions, assignments for the benefit of creditors or voluntary or
involuntary proceedings in bankruptcy pending against or contemplated by Seller
or otherwise applicable to the Property, and to Seller’s knowledge no such
actions have been threatened.

(g)           Each entity
comprising Seller is a corporation, duly organized, validly existing and in
good standing under the laws of the State of California, and has all requisite
power and authority to execute, deliver and perform under this Contract and to
carry on its business as now conducted. 
Neither the execution and delivery of this Contract by Seller nor Seller’s
performance of its obligations hereunder will result in a violation or breach
of any term or provision or constitute a default or accelerate the performance
required under any other agreement or document to which Seller is a party or is
otherwise bound or to which the Property, or any part thereof, is subject and
will not constitute a violation of any law, ruling, regulation or order to
which Seller is subject.  This Contract
constitutes a valid and binding obligation of Seller enforceable in accordance
with its terms, except as such enforceability may be limited by bankruptcy,
insolvency, reorganization, moratorium or similar laws of general application
affecting the rights and remedies of creditors. 
The Knowledge Parties (as hereinafter defined) are those representatives
of Seller primarily responsible for Seller’s operation of the Property and, as
such, are those Seller’s representatives most likely to know whether and to
what extent the representations set forth herein are true, complete and
correct.

(h)           No person, firm or corporation or
other entity has any right or option to acquire fee title to the Property, or
any part thereof.

(i)            Seller is neither a “foreign person”
nor a “foreign corporation” as those terms are defined in Section 7701 of the
Internal Revenue Code of 1986, as amended.

(j)            The Property is taxed separately
from all other property.

(m)          Except as otherwise disclosed in the
Property Information made available to Purchaser pursuant to Section 3.03 and
Section 3.04, Seller has no knowledge of the existence or prior existence on
the Property of any hazardous substance, nor the existence on the Property of
any above or below ground storage tank.

WHENEVER REFERENCE
IS MADE IN THIS CONTRACT TO THE KNOWLEDGE OF SELLER SUCH REFERENCE SHALL BE
DEEMED LIMITED TO THE ACTUAL 

 10
 

KNOWLEDGE OF
DENNIS R. JOLICOEUR AND MICHAEL BEAN (THE “KNOWLEDGE PARTIES”) AND SHALL
EXPRESSLY EXCLUDE ANY CONSTRUCTIVE KNOWLEDGE, AND ANY KNOWLEDGE WHICH COULD BE
IMPUTED TO THE KNOWLEDGE PARTIES. 
PURCHASER ACKNOWLEDGES THAT THE KNOWLEDGE PARTIES HAVE NOT UNDERTAKEN
ANY INDEPENDENT INVESTIGATION WITH RESPECT TO THE MATTERS SET FORTH IN THIS
CONTRACT.  PURCHASER AGREES THAT IT HAS
INSPECTED AND WILL CONTINUE TO INSPECT AND ASSESS THE PROPERTY DURING THE
REVIEW PERIOD AND THAT PURCHASER WILL RELY SOLELY UPON SUCH INSPECTION AND
ASSESSMENT IN ELECTING WHETHER OR NOT TO PURCHASE THE PROPERTY.  IT IS UNDERSTOOD AND AGREED BY SELLER AND
PURCHASER THAT, IN ADDITION TO THE RELEASE SET FORTH IN SECTION 3.01(B),
PURCHASER IS PURCHASING THE PROPERTY “AS IS” AND “WHERE IS”, AND WITH ALL
FAULTS AND DEFECTS, LATENT OR OTHERWISE, AND, EXCEPT AS EXPRESSLY SET FORTH IN
THIS CONTRACT AND THE CLOSING DOCUMENTS, SELLER IS MAKING NO REPRESENTATIONS OR
WARRANTIES, EXPRESS OR IMPLIED, BY OPERATION OF LAW OF OTHERWISE, WITH RESPECT
TO THE QUALITY, PHYSICAL CONDITION ENVIRONMENTAL CONDITION, ZONING,
ENTITLEMENTS, OCCUPANCY, COMPLIANCE WITH LAW, STATUS OF TITLE, VALUE OR ANY
OTHER MATTER CONCERNING OR RELATING TO THE PROPERTY, AND PURCHASER IS NOT
RELYING UPON ANY REPRESENTATIONS OR WARRANTIES NOT SET FORTH IN THIS
CONTRACT.  IN ADDITION TO AND NOT IN
LIMITATION OF THE FOREGOING, IT IS UNDERSTOOD AND AGREED BY SELLER AND
PURCHASER THAT SELLER MAKES NO WARRANTY OF HABITABILITY, SUITABILITY,
MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE OR FITNESS FOR ANY PURPOSE
WITH REGARD TO THE PROPERTY.  PURCHASER
RECOGNIZES, STIPULATES AND AGREES THAT THE PROVISIONS OF THIS SECTION ARE A
MATERIAL INDUCEMENT TO SELLER IN CONNECTION WITH THE EXECUTION OF THIS CONTRACT
AND THE CONSUMMATION OF THE TRANSACTIONS CONTEMPLATED HEREBY AND THAT, BUT FOR
THE PROVISIONS OF THIS SECTION, SELLER WOULD NOT HAVE EXECUTED THIS CONTRACT OR
AGREED TO SELL THE PROPERTY ON THE TERMS AND CONDITIONS CONTAINED HEREIN.  THE PROVISIONS OF THIS SECTION SHALL SURVIVE
THE CLOSING.

PURCHASER HEREBY
ACKNOWLEDGES THAT PURCHASER HAS READ AND IS FAMILIAR WITH THE PROVISIONS OF
CALIFORNIA CIVIL CODE SECTION 1542 (“SECTION
1542”), WHICH IS SET FORTH BELOW:

“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES
NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE,
WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE
DEBTOR.”

BY INITIALING BELOW, PURCHASER HEREBY WAIVES THE PROVISIONS OF
SECTION 1542 SOLELY IN CONNECTION WITH THE MATTERS WHICH ARE THE SUBJECT
OF THE FOREGOING WAIVERS AND RELEASES.

 11
 

J P R

PURCHASER’S
INITIALS

 

NOTWITHSTANDING ANYTHING HEREIN TO THE
CONTRARY, (A) PURCHASER HAS NOT RELEASED SELLER FROM AND SELLER SHALL REMAIN
LIABLE FOR, ANY FRAUD BY SELLER OR ANY BREACH BY SELLER OF ANY REPRESENTATION,
WARRANTY, COVENANT OR INDEMNITY SET FORTH HEREIN OR IN ANY CLOSING DOCUMENT
WHICH SURVIVES THE CLOSING; AND (B) SELLER ACKNOWLEDGES AND AGREES THAT
PURCHASER HAS NOT ASSUMED, AND HAS NO OBLIGATION TO INDEMNIFY SELLER FOR, ANY
GOVERNMENT OR THIRD PARTY CLAIM ASSERTED AGAINST SELLER AFTER THE CLOSING TO
THE EXTENT APPLICABLE TO AN ACT OR OMISSION TAKEN OR FAILED TO BE TAKEN PRIOR
TO THE CLOSING.  THE PROVISIONS OF
THIS SECTION SHALL SURVIVE THE CLOSING.

Section
9.02.          Purchaser’s Representations.  Purchaser
hereby represents and warrants to Seller, as of the date hereof and as of the
Closing Date, as follows:

(a)           Purchaser is a limited liability
company, duly organized, validly existing and in good standing under the laws
of the State of Delaware, and has all requisite power and authority to carry on
its business as now conducted.

(b)           Purchaser has the capacity and complete
authority to enter into and perform this Contract, and no consent, approval or
other action by any person or entity (other than the person signing this
Contract on behalf of Purchaser and any approval to be obtained by Purchaser
during the Review Period) will be needed thereafter to authorize Purchaser’s
execution and performance of this Contract.

Section
9.03.          Discovery.  If
either Seller or Purchaser discovers, prior to or at the Closing, that any
representation or warranty of the other party is false, misleading or
inaccurate in any material respect, the discovering party may, at its option,
terminate this Contract and the parties hereto shall be relieved of all
liabilities and obligations hereunder and (a) if Purchaser is the discovering
party, Purchaser shall be entitled to the immediate return of the Purchase
Price, together with all accrued interest thereon, and to pursue its remedies
under Section 8.02 of this Contract; and (b) if Seller is the discovering
party, Seller shall be entitled to pursue its remedies under Section 8.01 of
this Contract.  If the party discovering
that the other party’s representation or warranty is inaccurate elects to close
the transaction, then the discovering party shall be deemed to have waived any
breach by the other party as a result of the inaccuracy of its representation
or warranty, and clause (A) of the last paragraph of Section 9.01(A) shall be
inapplicable thereto.  Representations
and warranties under this Article IX shall fully survive the Closing and the
delivery of the Deed, but to the extent that neither Seller nor Purchaser has
made any claim as to the breach of any such representation or warranty within
twelve (12) months after the Closing Date, such representations and warranties
will terminate and be of no further force and effect.

 12
 

Section
9.04.          Operating Covenants.  Seller
agrees to operate and maintain the Property prior to the Closing in a manner
consistent with its current operating procedures and applicable legal
requirements and, after the Effective Date, shall not, without the prior
written consent of Purchaser (not to be unreasonably withheld or delayed), do
any of the following:

(a)           Enter into any contract with respect
to Seller’s ownership of the Property that will not be fully performed by Seller
on or before the Closing Date or that will not be susceptible of cancellation
by Purchaser on or after the Closing Date upon thirty (30) days or less prior
written notice, without cost or liability to Purchaser, or amend, modify or
supplement any existing contract or agreement in any material respect.

(b)           Enter into any lease (other than the
Natrol Leases at the Closing) or amend, modify, supplement or terminate the
Currie Lease or any other existing lease.

(c)           Fail to maintain Seller’s current
policies of insurance covering Seller’s interest in the Property or advise
Purchaser promptly of the occurrence of any fire or other casualty affecting
the Property.

(d)           Until Purchaser terminates this
Contract for any reason other than Seller’s default, sell, assign or create any
right, title or interest whatsoever in or to the Property (excluding execution
any so-called “backup contracts” or letters of intent which are expressly
made subordinate to this Contract, but not otherwise) or create or permit to
exist any lien, encumbrance or charge thereon, other than liens or encumbrances
noted in the Title Report, without promptly discharging same or otherwise
complying with the terms of Section 4.04.

(e)           Take any action, or omit to take any
action, which action or omission would have the effect of violating in any
material respect any of the representations and warranties of Seller contained
in this Contract.

Section
9.05.          Conditions Precedent.  Purchaser is not obligated to perform under
this Contract unless all of the following conditions precedent are satisfied
(or waived in writing by Purchaser) and are otherwise true and correct as of
the Closing Date:

(a)           There has been no material adverse
change in the matters reflected in the Title Report, the Survey, the operating
statements or the other items delivered to Purchaser hereunder since the
expiration of Purchaser’s “Review Period” under the Agreement Concerning
Property, except to reflect those items approved or otherwise created in
writing by Purchaser.

(b)           All of Seller’s representations and
warranties are true and correct in all material respects.

(c)           Seller has performed all of its
covenants, agreements, and obligations under this Contract and is otherwise not
in default.

 13
 

(d)           Currie executes and delivers an estoppel
certificate addressed to Seller and Purchaser and otherwise in the form
required by paragraph 16 of the Currie Lease which and which confirms, among
other matters, that the rent commencement date has occurred and that Currie has
no default, offset or other claims against Seller under the Currie Lease.

Notwithstanding
the generality of the foregoing, Seller shall use its reasonable efforts to
satisfy all of the foregoing conditions precedent.  If Seller is unable to satisfy all of the
foregoing conditions precedent, Purchaser may waive any unsatisfied conditions
precedent, extend the Closing Date or terminate this Contract, in any such
event by written notice to Seller. 
Seller shall have no liability to Purchaser if, after reasonable
efforts, Seller is unable to satisfy any closing conditions, unless the
inability is due to a default by Seller. 
If Seller is unable to satisfy all of the foregoing conditions precedent
due to a default by Seller, Purchaser may pursue its rights and remedies under
Section 8.02.

ARTICLE X

Notices

Section
10.01.        Notices.  Any notice, demand or other communication
which may or is required to be given under this Contract must be in writing and
must be:  (a) personally delivered; (b)
transmitted by United States postage prepaid mail, registered or certified
mail, return receipt requested; (c) transmitted by reputable overnight courier
service, such as Federal Express; or (d) transmitted by legible facsimile (with
answer back confirmation) to Purchaser and Seller as listed below.  Except as otherwise specified herein, all
notices and other communications shall be deemed to have been duly given on (i)
the date of receipt if delivered personally, (ii) two (2) business days after
the date of posting if transmitted by registered or certified mail, return
receipt requested, (iii) the first (1st) business day after the date of
deposit, if transmitted by reputable overnight courier service, or (iv) the
date of transmission with confirmed answer back if transmitted by facsimile,
whichever shall first occur.  A notice or
other communication not given as herein provided shall only be deemed given if
and when such notice or communication and any specified copies are actually
received in writing by the party and all other persons to whom they are required
or permitted to be given.  Purchaser and
Seller may change its address for purposes hereof by notice given to the other
parties in accordance with the provisions of this Section.  Notices hereunder shall be directed as
follows:

	
  If to Purchaser:

  	
  c/o TA Associates Realty

  
	
   

  	
  1301 Dove Street, Suite 860

  
	
   

  	
  Newport Beach, California 926600-2109

  
	
   

  	
  Attention: Douglas M. Engelman

  
	
   

  	
  Telephone: (949) 852-2030

  
	
   

  	
  Facsimile: (949) 852-2031

  

 

 14
 

 

	
  With a copy to:

  	
  Stutzman, Bromberg, Esserman & Plifka,

  
	
   

  	
  A Professional Corporation

  
	
   

  	
  2323 Bryan Street, Suite 2200

  
	
   

  	
  Dallas, Texas 75201

  
	
   

  	
  Attention: Kenneth F. Plifka

  
	
   

  	
  Telephone: (214) 969-4900

  
	
   

  	
  Facsimile: (214) 969-4999

  
	
   

  	
   

  
	
  If to Seller:

  	
  Natrol Real Estate, Inc.

  
	
   

  	
  Natrol Real Estate II, Inc.

  
	
   

  	
  c/o Natrol, Inc.

  
	
   

  	
  21411 Prairie Street

  
	
   

  	
  Chatsworth, California 91311

  
	
   

  	
  Attention: Steven Spitz, Esq., General Counsel

  
	
   

  	
  Telephone: (818) 739-6000, ext. 199

  
	
   

  	
  Facsimile: (818) 739-6032

  
	
   

  	
   

  
	
  With copies to:

  	
  John A. Rosenfeld

  
	
   

  	
  Post Office Box 1308

  
	
   

  	
  Topanga, California 90290

  
	
   

  	
  Telephone: (310) 455-9718

  
	
   

  	
  Facsimile: (310) 455-9768

  

 

ARTICLE XI

Risk of Loss

Section
11.01.        Minor Damage.  In
the event of “minor” loss or damage [being defined for the purpose of this
Contract as damage to the Property such that the Property could be repaired or
restored, in the opinion of an architect mutually acceptable to Seller and
Purchaser (with any fees, costs or expenses pertaining to such opinion to be
borne equally by Purchaser and Seller), to a condition substantially identical
to that of the Property immediately prior to the event of damage at a cost
equal to or less than $100,000], neither Seller nor Purchaser shall have the
right to terminate this Contract due to such damage but Seller shall, at
Purchaser’s option as expressed to Seller in writing, either (a) reduce the
Purchase Price by an amount equal to the cost to repair such damage, or (b)
repair and restore the damaged portion of the Property to a condition
substantially identical to that which existed immediately prior to the
occurrence of such damage and in either such event Seller shall retain all of
Seller’s right, title and interest to any claims and proceeds Seller may have
with respect to any casualty insurance policies relating to the Property.  If Purchaser elects to have Seller repair and
restore the damaged portion of the Property, Seller shall act promptly and
diligently to complete such repairs in a good and workmanlike manner and shall
complete such repairs prior to the Closing Date if reasonably possible.

Section
11.02.        Major Damage.  In
the event of a “major” loss or damage (being defined as any loss or damage
which is not “minor” as defined hereinabove), Purchaser shall have the option 

 15
 

of terminating this
Contract by written notice to Seller, in which event Seller and Purchaser shall
thereupon be released from any and all liability hereunder and the Purchase
Price, together with all accrued interest thereon, shall be immediately
returned to Purchaser by the Escrow Agent. 
If Purchaser elects not to terminate this Contract, Purchaser and Seller
shall proceed with the Closing, provided Seller shall assign all of Seller’s
right, title and interest to any claims and proceeds Seller may have with
respect to any casualty insurance policies relating to the Property, and
Purchaser shall receive a credit against the Purchase Price in an amount equal
to the aggregate amount of any deductible(s) under the insurance policies
assigned to Purchaser.

Section 11.03.        Vendor and Purchaser Risk Act.  Except
as set forth in Section 11.01 and Section 11.02, Seller shall bear the full
risk of loss until Closing.  Upon the
Closing, full risk of loss with respect to the Property shall pass to
Purchaser.

Section
11.04.        Condemnation.  If
before the Closing any condemnation or eminent domain proceedings are
threatened or initiated against all or any portion of the Property and, in the
reasonable opinion of Purchaser, such condemnation or eminent domain
proceedings would materially interfere with the current use of the Property,
then Purchaser may terminate this Contract upon written notice to Seller and
Seller and Purchaser shall thereupon be released from any and all further
liability hereunder and the Purchase Price, together with all accrued interest
thereon, shall be immediately returned to Purchaser by the Escrow Agent.  If Purchaser does not elect to terminate this
Contract within ten (10) business days after receipt of written notice of the
commencement of any such proceedings (but in any event prior to the Closing
Date), or if, in the reasonable opinion of Purchaser, such condemnation or
eminent domain proceedings would not materially interfere with Seller’s current
use of the Property, the Closing shall take place as provided herein and Seller
shall assign to Purchaser at the Closing all rights and interest of Seller in
and to any condemnation awards payable or to become payable on account of such
condemnation or eminent domain proceedings.

ARTICLE XII

Miscellaneous

Section
12.01.        Entire Agreement; Confidentiality.  This Contract, together with all exhibits
attached hereto and the Agreement Concerning Property, constitutes the entire
agreement between the parties hereto and supersedes any prior understanding,
letter of intent or written or oral agreements between the parties concerning
the Property (other than the Agreement Concerning Property).  Prior to the Closing, no press release or
other publicity regarding the terms of this Contract or Purchaser’s acquisition
of the Property shall be authorized by either party without the other party’s
prior written consent, which shall not be unreasonably withheld.

Section
12.02.        No Rule of Construction.  This
Contract has been drafted by both Seller and Purchaser and no rule of
construction shall be invoked against either party with respect to the
authorship hereof or of any of the documents to be delivered by the respective
parties at the Closing.

 16
 

Section
12.03.        Multiple Counterparts;
Governing Law.  This Contract may be
executed in multiple counterparts, each of which shall be deemed an original
but all of which together shall constitute one and the same instrument, and
shall be construed and interpreted under the laws of the State of California
(without regard to conflicts of laws) and all obligations of the parties
created hereunder are performable in the County in which the Property is
located.

Section
12.04.        Attorneys’ Fees.  If
either party brings an action or proceeding involving the Property, whether
founded in tort, contract or equity, or to declare rights under this Contract,
the Prevailing Party (as hereinafter defined) in any such action, proceeding or
appeal thereon, shall be entitled to reasonable attorneys’ fees.  Such fees may be awarded in the same suit or
recovered in a separate suit, whether or not such action or proceeding is
pursued to decision or judgment.  The
term “Prevailing Party” shall include, without limitation, a party who
substantially obtains or defeats the relief sought, as the case may be, whether
by compromise, settlement, judgment, or the abandonment by the other party of
its claim or defense. The attorneys’ fee award shall not be computed in
accordance with any court fee schedule, but shall be such as to fully reimburse
all attorneys’ fees reasonably incurred.

Section
12.05.        Assignment.  This
Contract may not be assigned by Purchaser without the prior written consent of
Seller; provided, however, this Contract may be assigned by Purchaser without
the prior written consent of Seller, to any investment advisory client of
Purchaser, including, without limitation, any entity formed on its behalf.  Purchaser will remain liable under this
Contract following any such assignment. 
This Contract and all rights hereunder shall inure to and be binding
upon the respective heirs, personal representatives, successors and permitted
assigns of Seller and Purchaser.

Section
12.06.        Interpretation.  This Contract shall, unless otherwise
specified herein, be subject to the following rules of interpretation:  (a) the singular includes the plural and the
plural the singular; (b) words importing any gender include the other genders;
(c) references to persons or entities include their permitted successors and
assigns; (d) words and terms which include a number of constituent parts, things
or elements, including the terms Improvements, Permitted Exceptions, Personal
Property, Intangible Property and Property, shall be construed as referring
separately to each constituent part, thing or element thereof, as well as to
all of such constituent parts, things or elements as a whole; (e) references to
statutes are to be construed as including all rules and regulations adopted
pursuant to the statute referred to and all statutory provisions consolidating,
amending or replacing the statute referred to; (f) references to agreements and
other contractual instruments shall be deemed to include all subsequent
amendments thereto or changes therein entered into in accordance with their
respective terms; (g) the words “approve” or “consent” or “agree” or
derivations of said words or words of similar import mean, unless otherwise
expressly provided herein or therein, the prior approval, consent, or agreement
in writing of the person holding the right to approve, consent or agree with
respect to the matter in question, and the words “require” or “judgment” or “satisfy”
or derivations of said words or words of similar import mean the requirement,
judgment or satisfaction of the person who may make a requirement or exercise
judgment or who must be satisfied, which approval, consent, agreement,
requirement, judgment or satisfaction shall, unless otherwise expressly
provided

 17
 

herein or therein,
be in the sole and absolute discretion of the person holding the right to
approve, consent or agree or who may make a requirement or judgment or who must
be satisfied; (h) the words “include” or “including” or words of similar import
shall be deemed to be followed by the words “without limitation”; (i) the words
“hereto” or “hereby” or “herein” or “hereof” or “hereunder,” or words of
similar import, refer to this Contract in its entirety; (j) references to
sections, articles, paragraphs or clauses are to the sections, articles,
paragraphs or clauses of this Contract; and (k) numberings and headings of
sections, articles, paragraphs and clauses are inserted as a matter of
convenience only and shall not affect the construction of this Contract.

Section
12.07.        Exhibits.  The
following exhibits attached hereto shall be deemed to be an integral part of
this Contract:

	
  Exhibit A

  	
  -

  	
  legal description of the Real Property

  
	
   

  	
   

  	
   

  
	
  Exhibit B

  	
  -

  	
  form of Deed

  
	
   

  	
   

  	
   

  
	
  Exhibit C

  	
  -

  	
  form of Bill of Sale

  
	
   

  	
   

  	
   

  
	
  Exhibit D

  	
  -

  	
  form of FIRPTA Affidavit

  
	
   

  	
   

  	
   

  
	
  Exhibit E

  	
  -

  	
  form of Natrol Leases

  
	
   

  	
   

  	
   

  
	
  Exhibit F

  	
  -

  	
  Disclosure Schedule

  

 

Section
12.08.        Modifications.  This
Contract cannot be changed orally, and no executory agreement shall be
effective to waive, change, modify or discharge it in whole or in part unless
such executory agreement is in writing and is signed by the parties against whom
enforcement of any waiver, change, modification or discharge is sought.  Any such modification need not be joined in
by Broker or the Escrow Agent.

Section
12.09.        Reporting Person.  Purchaser and Seller hereby designate the
Escrow Agent as the “reporting person” pursuant to the provisions of Section
6045(e) of the Internal Revenue Code of 1986, as amended.

Section
12.10.        Time of Essence.  Time is of the essence to both Seller and
Purchaser in the performance of this Contract, and they have agreed that strict
compliance by both of them is required as to any date and/or time set out
herein, including, without limitation, the dates and times set forth in Article
IV of this Contract.  If the final day of
any period of time set out in any provision of this Contract falls upon a
Saturday, Sunday or a legal holiday under the laws of the State of California,
then and in such event, the time of such period shall be extended to the next
day which is not a Saturday, Sunday or legal holiday.

[SEE SIGNATURES ON
THE FOLLOWING PAGES]

 18
 

IN WITNESS
WHEREOF, this Contract has been executed by Purchaser and Seller as of (but not
necessarily on) the date and year first above written.

	
  

  	
  PURCHASER:

  
	
   

  	
   

  
	
   

  	
  REALTY ASSOCIATES ADVISORS, LLC,

  
	
   

  	
  a Delaware limited liability company

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Realty Associates Advisors Trust

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
      /s/ James P. Raisides

  	
   

  
	
   

  	
   

  	
  Name:

  	
  James P. Raisides

  
	
   

  	
   

  	
  Title:

  	
  Sr. Vice President

  
						

 19
 

 

	
  

  	
  SELLER:

  
	
   

  	
   

  
	
   

  	
  NATROL REAL ESTATE, INC.,

  
	
   

  	
  a California corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Dennis R. Jolicoeur

  	
   

  
	
   

  	
  Name:

  	
  Dennis R. Jolicoeur

  
	
   

  	
  Title:

  	
  CFO

  
	
   

  	
   

  
	
   

  	
  NATROL REAL ESTATE II, INC.,

  
	
   

  	
  a California corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Dennis R. Jolicoeur

  
	
   

  	
  Name:

  	
  Dennis R. Jolicoeur

  
	
   

  	
  Title:

  	
  CFO

  

 

 20
 

ESCROW AGENT JOINDER

 

The
Escrow Agent joins herein in order to evidence its agreement to perform the
duties and obligations of the Escrow Agent set forth herein and the
accompanying escrow instructions and to acknowledge receipt, as of the date set
forth below, of an original counterpart of this Contract signed by Seller and
Purchaser.

	
  Date: March 29, 2007.

  
	
   

  
	
   

  
	
   

  	
  FIDELITY NATIONAL TITLE INSURANCE COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Helen Fonville

  	
   

  
	
   

  	
  Name:

  	
  Helen Fonville

  	
   

  
	
   

  	
  Title:

  	
  Escrow officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  

 

 21

SCHEDULE 3.03

LIST OF CERTAIN DUE DILIGENCE MATERIALS

Tenant Information

1.                                       Financial
Statements – Three (3) full fiscal years plus current year-to-date financial
statements for Natrol, Inc., as well as those financial statements for Currie
as can be requested by under the Currie Lease).

Operating Information

2.                                       If
in Seller’s possession, copies of certificates of occupancy for the building
shells and copies of certificates of occupancy and/or building permits for all
tenant improvements and operating permits, licenses and certificates.

3.                                       Listing
of capital expenditures and operating expenses for the Property for the prior
three (3) years.

4.                                       If
in Seller’s possession, copies of all service, maintenance, leasing, management
or other contracts and all other agreements, warranties and guaranties relating
to the operation, use, management or maintenance of the Property, including any
amendments and/or letter agreements pertaining to each.

5.                                       Copies
of all real estate tax bills (including special assessments) for the Property
for the prior three (3) years.

Building Information

6.                                       If
in Seller’s possession, final “as built” shell, electrical, mechanical and
structural plans and specifications for the Property, including for all tenant
improvements, and, to the extent that any portion of the Property is under
construction as of the Closing Date, any and all plans, specifications and
construction contracts or agreements related thereto.

7.                                       List
of personal property to be transferred to Buyer.

8.                                       Property
Condition Reports – All reports in Seller’s possession accessing the physical
and structural condition of the Property and Property components including,
without limitation:  Engineering,
Structural, Seismographic, Geotechnical, Mechanical, Roof, Environmental,
Fire/Life/Safety, Air Quality Investigations; and ADA reports.

9.                                       Survey
– Most recent property survey in Seller’s possession.

 1
 

10.                                 Building
Plans – If in Seller’s possession, comprehensive set of “As Built” plans
including all specialty plan subsets: 
Architectural, Structural, Mechanical, Plumbing, Electrical, Roof, and
Landscape plans.

11.                                 Operating
Permits, Licenses & Certifications – Copies of all licenses, permits,
certifications, and other authorizations required for onsite operations in
Seller’s possession, including, without limitation, Sprinkler Certification(s),
Fire Alarm Certification(s), Elevator Permits, Boiler Permit(s), Generator
Permit(s), Infra-red Electrical Test(s), Fire Pump Permit(s), UST Permit(s),
Back-Flow Certification(s), Swing State License(s), etc.

12.                                 HVAC
Maintenance Logs – To the extent in Seller’s possession, historical periodic
HVAC maintenance reports for the two (2) years, including (to the extent
available) comprehensive inventory of all mechanical systems units stating
manufacturer, make/model, capacity, age, condition and estimated remaining
useful life.

Miscellaneous

13.                                 If
in Seller’s possession, copies of any notices of violations of any federal,
state, municipal or health, fire, building, zoning, safety, environmental protection
or other applicable codes, laws, rules, regulations or ordinances relating or
applying to the Property.

14.                                 List
of all litigation pending against the Property or against the Seller which
relates to the Property.

15.                                 Non-Recorded
Encumbrances – Copies of any miscellaneous non-recorded encumbrances on the
Property in Seller’s possession, if any, including, without limitation:  CC&Rs, Association Documents, Reciprocal
Easements, Reciprocal Access Agreements, Ground Leases, etc.

16.                                 Property
Loss History Report – Property loss history report (three years) prepared and
submitted by Seller’s Property Casualty and Liability insurance carrier(s).

17.                                 Occupant
Complaints – Seller to prepare brief history identifying all material occupant,
visitor, or employee complaints reported to ownership with the past three (3)
years including, but not limited to: 
water intrusion, unpleasant odors, building or site hazards, indoor air
quality, building-related health concerns, property safety, property crime,
general nuisances, etc.

 2

EXHIBIT A

LEGAL DESCRIPTION

Parcel 1:

 

Lots 7, 8, 9 and 10 of Tract No. 33150, in the City or Los Angeles,
County of Los Angeles, State of California, as per map filed in Book 910, Pages
63 to 65, inclusive of Maps, in the office of the County Recorder of said
county.

 

Except from that portion of said land lying Westerly of the Westerly
lines of Lots 5 and 8 of Tract No. 22917, as per map recorded in Book 638,
Pages 3 to 66 of maps, all oil, asphaltum, petroleum, natural gas and other
hydrocarbons and other valuable mineral substances and products and all other
minerals whether or not of the same character herein before described generally
in, under or upon said land, but without the right to enter upon the surface of
said land and the subsurface lying above a depth of 500 feet below the surface
thereof, to mine, excavate, bore, drill and sink and otherwise collect and
develop said oils, petroleum, asphaltum, natural gas or other hydrocarbons or
other valuable mineral substances and products or any other mineral or minerals
(whether of the same character hereinabove described generally or not) and also
to remove and sell said oil, asphaltum natural gas or other hydrocarbons or
other valuable mineral substances and products or other mineral or minerals, as
granted to Porter Sesnon, Barbara Sesnon Cartan, William T. Sesnon, Jr. to each
an undivided one-third interest as tenants in common, as the separate property,
of each, by deed recorded December 14, 1951 in Book 37855, Page 1, Official
Records and recorded November 3, 1952 in Book 40220, Page 377, Official Records
and as quitclaimed by deed dated September 2, 1959 executed by Porter Sesnon,
Barbara Sesnon Cartan and William T. Sesnon, Jr., to the then record owner
recorded September 14, 1959 in Book D-600, Page 923, Official Records as
Instrument No. 3561.

 

Parcel 2:

 

A Non-Exclusive Easement for Vehicular Staging, Ingress and Egress over
a portion of Lot 4 of Tract No. 33150 in the City of Los Angeles, County of Los
Angeles, State of California, as per map filed in Book 910 Pages 63 through 65
inclusive of Maps, in the office of the County Recorder of said county, the
easement lying 15.00 feet southerly, measured at right angles, to the following
described line:

 

Commencing at the southwesterly corner of Lot 7 of said Tract No.
33150, said corner also being the northwesterly corner of said Lot 4; Thence
South 89° 59’ 39’ East along the southerly line of said Lot 7 and the northerly
line of said Lot 4, 113.00 to the True Point of Beginning; Thence continuing
along said last mentioned line South 89°59 '39'east 311.32 feet to the Point of
Termination, said point also being North 89° 59’ 39’ West, 148.00 feet from the
southeasterly corner of Lot 9 and the northeasterly corner of said Tract No.
33150.

 

Assessor’s Parcel No: 2746-014-018

 

 1
 

The Easterly 130 feet of
Lot 2 and Lot 3 of Tract No. 33150, in the City of Los Angeles, County of Los
Angeles, State or California, as per map filed in Book 910, Pages 63 to 65,
inclusive of Maps, in the office of the County Recorder of said county.

Except from that portion
of said land lying Westerly of the Westerly lines of Lots 5 and 8 of Tract No.
22917, as per map recorded in Book 638, Pages 3 to 66 of maps, all oil
asphaltum, petroleum, natural gas and other hydrocarbons and other valuable
mineral substances and products and all other minerals whether or not of the
same character herein before described generally in, under or upon said land,
but without the right to enter upon the surface of said land and the subsurface
lying above a depth of 500 feet below the surface thereof, to mine, excavate,
bore, drill and sink and otherwise collect and develop said oils, petroleum,
asphaltum, natural gas or other hydrocarbons or other valuable mineral
substances and products or any other mineral or minerals (whether of the same
character hereinabove described generally or not) and also to remove and sell
said oil, asphaltum natural gas or other hydrocarbons or other valuable mineral
substances and products or other mineral or minerals, as granted to Porter
Sesnon, Barbara Sesnon Cartan, William T. Sesnon, Jr. to each an undivided
one-third interest as tenants in common, as the separate property, of each, by
deed recorded December 14, 1951 in Book 37855, Page 1, Official Records and
recorded November 3, 1952 in Book 40220, Page 377, Official Records and as
quitclaimed by deed dated September 2, 1959 executed by Porter Sesnon, Barbara
Sesnon Cartan and William T. Sesnon, Jr., to the then record owner recorded
September 14, 1959 in Book D-600, Page 923, Official Records as Instrument No.
3561.

Assessor’s Parcel No:
2746-014-003

 2

EXHIBIT B

RECORDING REQUESTED BY
AND

WHEN RECORDED MAIL THIS GRANT

DEED AND ALL TAX STATEMENTS TO:

c/o TA Associates
Realty

1301 Dove Street, Suite 860

Newport Beach, California 92660

Attn:  Asset Manager – Fund VIII

(Above Space For Recorder’s
Use Only)

GRANT DEED

The undersigned
grantor declares:

Documentary Transfer Tax
is shown by an unrecorded separate affidavit pursuant to Section 11932 of
the Revenue and Taxation Code.

FOR VALUABLE CONSIDERATION, receipt of which is hereby
acknowledged,                               ,
a                        ,
hereby GRANTS to                                  ,
a                             
the following described real property (“Property”) located in the City
of Los Angeles, County of Los Angeles, State of California.

See Exhibit ”A” attached hereto and
incorporated herein by this reference.

SUBJECT TO:

1.             Taxes
and assessments not yet due and payable.

2.             All other covenants, conditions, restrictions,
reservations, rights, rights of way, easements, encumbrances, liens and title
matters described on Exhibit “B” attached hereto, but not otherwise.

 1
 

IN WITNESS
WHEREOF, this instrument has been executed as of (but not necessarily on) this     
day of             ,
2007.

	
  

  	
  GRANTOR:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
  THE STATE OF

  	
  §

  	
   

  
	
   

  	
  §

  	
  KNOW ALL MEN BY THESE PRESENTS:

  
	
  COUNTY OF

  	
  §

  	
   

  
					

 

This instrument
was acknowledged before me on
            , 2007,
by
                                     .  He/She is personally known to me or has
produced                  
as identification and did/did not take an oath.

	
  

  	
   

  
	
   

  	
  Notary Public, State of

  
	
   

  	
   

  
	
   

  	
   

  
	
  My Commission
  Expires:

  	
  Notary’s name printed:

  
	
   

  	
   

  	
   

  
			

 

 2
 

 

	
  Document No. 

  	
   

  
	
  Recorded                       
  2007

  	
   

  

 

STATEMENT OF TAX DUE AND
REQUEST THAT TAX DECLARATION NOT BE MADE A PART OF THE PERMANENT RECORD IN THE
OFFICE OF THE COUNTY RECORDER (PURSUANT TO SECTION 11932 OF THE CALIFORNIA
REVENUE AND TAXATION CODE)

TO:         Recorder, County of Los Angeles

Request is hereby made in
accordance with the provisions of the Documentary Transfer Tax Act that the
amount of the tax due not be shown on the original document which names:

Grantor:

Grantee: 

The property described in
the accompanying document is located in the City of Los Angeles, County of Los
Angeles.

The amount of tax due on
the accompanying document is $                              .

	
  x

  	
  Computed on full value of property conveyed.

  
	
   

  	
   

  
	
  o

  	
  Computed on full value, less liens and encumbrances
  remaining at the time of sale.

  
	
   

  	
   

  
	
   

  	
   

  
	
  (Signature of
  Declarant or Agent)

  	
   

  
	
   

  	
   

  	
   

  
	
  (Firm Name)

  	
   

  
					

 

Note:      After the permanent record is made, this
form will be affixed to the conveying document and returned with it.

 3

EXHIBIT C

BLANKET CONVEYANCE, BILL OF SALE AND
ASSIGNMENT

	
  STATE OF 

  	
  §

  	
   

  
	
   

  	
  §

  	
  KNOW ALL MEN BY THESE PRESENTS:

  
	
  COUNTY OF 

  	
  §

  	
   

  

 

That concurrently
with the execution and delivery hereof,                                       ,
a                             
(“Assignor”), is conveying to                                                                      
(“Assignee”), by Grant Deed (the “Deed”), those certain tracts of
land lying and being situated in Los Angeles, California and being more
particularly described on Exhibit A attached to the Deed and made a
part thereof for all purposes (the “Property”).  Unless otherwise defined herein, all
initially capitalized terms shall have the respective meanings ascribed to such
terms in that certain Purchase Agreement dated                          ,
2007, by and between Assignor and Realty Associates Advisors, LLC with respect
to the conveyance of the Property.

It is the desire
of Assignor hereby to assign, transfer and convey to Assignee, subject,
however, to those certain matters more particularly described on Exhibit B
to Deed attached thereto and made a part thereof for all purposes
(collectively, the “Permitted Encumbrances”), the Currie Lease, all
Improvements, Personal Property, and Intangible Property, including, without
limitation, those items more particularly described on Exhibit A
attached hereto and made a part hereof for all purposes (collectively, the “Assigned
Properties”); provided, however, the Assigned Properties shall not be deemed
to include, Assignee shall have no liability under, and Assignor shall remain
solely liable and responsible for, any service or other contracts not listed on
Exhibit A hereto and the contracts and other matters set forth on Exhibit B
attached hereto and made a part hereof for all purposes (collectively, the “Non-Assigned Properties”).

NOW, THEREFORE, in
consideration of the receipt of Ten and No/100 Dollars ($10.00) and other good
and valuable consideration, in hand paid by Assignee to Assignor, the receipt
and sufficiency of which are hereby acknowledged and confessed by Assignor,
Assignor does hereby ASSIGN, SELL AND CONVEY to Assignee, its successors, legal
representatives and assigns, subject to the Permitted Encumbrances, all of the
Assigned Properties.

TO HAVE AND TO
HOLD the Assigned Properties, together with any and all rights and appurtenance
thereto in anywise belonging to Assignor unto Assignee, its successors and
assigns FOREVER, and Assignor does hereby bind itself and its successors to
WARRANT AND FOREVER DEFEND all and singular the Assigned Properties, subject to
the Permitted Encumbrances, unto Assignee, its successors and assigns, against
every person whomsoever lawfully claiming or to claim the same or any part
thereof by, through or under Grantor, but not otherwise.

 1
 

Assignor
indemnifies and agrees to protect, defend and hold Assignee and its successors
and assigns harmless from and against any and all liability (including, without
limitation, any strict liability), loss, cost, damage or expense (including,
without limitation, reasonable attorneys’ fees and costs of suit) incurred by,
or otherwise asserted against, Assignee or such successors and assigns to the
extent attributable, directly or indirectly, to any one or all of (a) the Assigned
Properties, but then only to the extent the act, event, omission, occurrence or
matter giving rise to a claim for indemnity hereunder occurred prior to the
date hereof, and/or (b) the Non-Assigned Properties, regardless of when the
act, event, omission, occurrence or matter giving rise to a claim for indemnity
hereunder occurred.

Assignee, by its
acceptance hereof, agrees to indemnify, protect, defend and hold Assignor
harmless from and against any and all liability (including, without limitation,
any strict liability), loss, cost, damage or expense (including, without
limitation, reasonable attorneys’ fees and costs of suit) incurred by or
otherwise asserted against Assignor with respect to the Assigned Properties to
the extent same arise or are otherwise attributable to the period from and
after the date hereof, but not otherwise; provided, however, Assignee shall be
released and discharged from and against any liability or obligation hereunder
upon the date Assignee no longer holds an interest in the Property as long as
Assignee’s successor in interest assumes such obligations in writing.

IN WITNESS
WHEREOF, Assignor and Assignee have executed this instrument as of (but not
necessarily on) this                    
day of                         ,
2007.

	
   

  	
  ASSIGNOR:

  
	
   

  	
   

  
	
   

  	
  [TO BE INSERTED]

  
	
   

  	
   

  
	
   

  	
  ASSIGNEE:

  
	
   

  	
   

  
	
   

  	
  [TO BE INSERTED]

  

 

 2

EXHIBIT D

FIRPTA AFFIDAVIT

	
  THE STATE OF

  	
  §

  	
   

  
	
   

  	
  §

  	
  KNOW ALL MEN BY THESE PRESENTS:

  
	
  COUNTY OF

  	
  §

  	
   

  

 

Section 1445 of
the Internal Revenue Code provides that a transferee of a U.S. real property
interest must withhold tax if the transferor is a foreign person.  To inform                                                                                        ,
(“Transferee”) that withholding of tax is not required upon the
disposition of a U.S. real property interest by                                                    ,
a                                                           
(“Transferor”), Transferor hereby certifies the following:

1.                                       Transferor
is not a foreign corporation, foreign partnership, foreign trust or foreign
estate (as those terms are defined in the Internal Revenue Code and Income Tax
Regulations);

2.                                       Transferor’s
U.S. employer identification number is:                           ;
and

3.                                       Transferor’s
office address is                                                                                 .

4.                                       Transfer
is not a “disregarded entity” (as that term is defined in the Internal Revenue
Code and Income Tax Regulations).

Transferor
understands that this certification may be disclosed to the Internal Revenue
Service by the Transferee and that any false statement contained herein could
be punished by fine, imprisonment, or both.

Under penalties of
perjury I declare that I have examined this certification and to the best of my
knowledge and belief it is true, correct, and complete, and I further declare
that I have authority to sign this document.

EXECUTED
as of (but not necessarily on) this                 
day of                               ,
2007.

	
  

  	
  TRANSFEROR:

  
	
   

  	
   

  
	
   

  	
  [TO BE INSERTED]

  

 

 1
 

SWORN TO AND SUBSCRIBED
BEFORE ME this              
day of                         ,
2007.

 

	
  

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Notary Public, State of

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  My Commission Expires:

  	
  Notary’s name printed:

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
				

 

 2

EXHIBIT E

FORM OF NATROL LEASES

[PLEASE SEE Exhibits 10.20 and 10.21 filed herewith]

 1

EXHIBIT F

DISCLOSURE SCHEDULE

Seller discloses the following items with regards to its
representations, warranties and covenants set forth in Section 9.01 of the
attached Purchase Agreement (the “Contract”) by and between Natrol Real
Estate, Inc. and Natrol Real Estate II, Inc., collectively, as Seller, and
Realty Associates Advisors, LLC, as Purchaser.

·                In November and December 2006, Seller
received several Notices of Intent to Expire Permit from the Los Angeles
Department of Building and Safety (the “Department”)
for various permits pertaining to the P Building and the O Building.  Seller contacted the Department about all
such permits (except for Permit No. 97044-10000-01339 relating to a Duct Type
Smoke Det).  Building inspectors for the
Department indicated they were giving final approval for all such permits,
either as a result of inspecting the properties or because of certificates of
occupancy or permit cards that had been signed as finaled.  To Seller’s knowledge, the work for Permit
No. 97044-10000-01339 was completed according to all applicable building codes.

·                Additional work at the P Building and O
Building may have occurred for which permits were issued, but never finaled.

·                In 2004, a 14 x 16 foot demising wall for the
packaging department was installed at the P Building without obtaining a
building permit.

·                In 2005, two 14 x 12 foot office walls were
installed at the P Building without obtaining a building permit.

·                There may be various improvements made to or
personal property installed at the Property that were completed or installed in
accordance with then-applicable building codes. 
Such improvements and personal property may not be in compliance with
current applicable building codes (e.g., in October 2004, NRE received
information from a fire alarm contractor suggesting that NRE’s older smoke
detectors and other devices at the P Building were not in compliance with
current fire alarm codes.)

·                NRE II has not conducted annual tests of all
of the irrigation back flow prevention devices at the O Building.

·                Seller was informed by its property casualty
insurer that (1) material on the storage racks in the P Building may be stacked
too high and certain materials or other items of inventory may be grouped too
densely on such storage racks; and (2) Seller should install protective shields
for its Halide lighting in both the O Building and the P Building (Seller is
the process of replacing burnt-out Halide lights with those containing
protective shields).

SELLER
AGREES THAT ATTACHMENT OF THIS SCHEDULE TO THE CONTRACT DOES NOT INDICATE
PURCHASER’S ACCEPTANCE OF THE ABOVE ITEMS NOR MODIFY OR OTHERWISE WAIVE ANY OF
PURCHASER’S RIGHTS UNDER THE CONTRACT, INCLUDING PURCHASER’S RIGHT, FOR ANY OR
NO REASON, TO TERMINATE THE CONTRACT DURING THE REVIEW PERIOD.

 1

EXHIBIT G

TITLE REPORT

[PLEASE SEE ATTACHED]

 1

“Preliminary Report Top Sheet”

Help us stay on top of your transaction!

WILL ANY OF
THESE SITUATIONS

AFFECT YOUR TRANSACTION?

	
  *

  	
  Are your principals exchanging this property?

  	
  o
  Yes

  	
  o
  No

  
	
   

  	
   

  	
   

  	
   

  
	
  *

  	
  Will your principals be using a power of attorney?

  	
  o
  Yes

  	
  o
  No

  
	
   

  	
   

  	
   

  	
   

  
	
  *

  	
  Are any of the parties in title deceased?

  	
  o
  Yes

  	
  o
  No

  
	
   

  	
   

  	
   

  	
   

  
	
  *

  	
  Has there been a change in marital status?

  	
  o
  Yes

  	
  o
  No

  
	
   

  	
   

  	
   

  	
   

  
	
  *

  	
  Will there be a new entity formed? ie., partnership
  or corporation.

  	
  o
  Yes

  	
  o
  No

  
	
   

  	
   

  	
   

  	
   

  
	
  *

  	
  Are the sellers of this property non-residents of
  California?

  	
  o
  Yes

  	
  o
  No

  

 

If you answered “YES” to any of
these questions, 

please call your Escrow Officer.

	
  *

  	
  Do all parties signing
  document have valid photo I.D. or drivers license?

  	
  o
  Yes

  	
  o
  No

  

 

If “No”, now is the time to apply for a valid I.D.

This is a “Quick List”, call
your Escrow Officer if you have additional information that you think may be
important, or if you have any questions.

Thank you
for choosing 

Fidelity National Title Company

 

	
  

  	
  Fidelity
  National Title Company 

  OF CALIFORNIA

  

 

PRELIMINARY REPORT

In response to the application for a policy of
title insurance referenced herein, Fidelity National
Title Company hereby reports that it is prepared to issue,
or cause to be issued, as of the date hereof, a Policy or Policies of Title
Insurance describing the land and the estate or interest therein hereinafter
set forth, insuring against loss which may be sustained by reason of any
defect, lien or encumbrance not shown or referred to as an Exception herein or
not excluded from coverage pursuant to the printed Schedules, Conditions and
Stipulations of said Policy forms.

The printed Exceptions and Exclusions from the coverage
and Limitations on Covered Risks of said Policy or Policies are set forth in
Exhibit A attached. Limitations on Covered Risks applicable to the CLTA and
ALTA Homeowner’s Policies of Title Insurance which establish a Deductible
Amount and a Maximum Dollar Limit of Liability for certain coverages are also
set forth in Exhibit A. Copies of the Policy forms should be read. They are
available from the office which issued this report.

This report (and any supplements or amendments
hereto) is issued solely for the purpose of facilitating the issuance of a
policy of title insurance and no liability is assumed hereby. If it is desired
that liability be assumed prior to the issuance of a policy of title insurance,
a Binder or Commitment should be requested.

The Policy(s) of title insurance to be issued
hereunder will be policy(s) of Fidelity National Title Insurance Company, a
California Corporation.

Please read the exceptions shown or referred to
below and the exceptions and exclusions set forth in Exhibit A of this report
carefully. The exceptions and exclusions are meant to provide you with notice
of matters which are not covered under the terms of the title insurance policy
and should be carefully considered.

It is important to note that this preliminary report
is not a written representation as to the condition of title and may not list
all liens, defects and encumbrances affecting title to the land.

	
  

  	
  

  

 

	
  

  	
  Fidelity
  National Title Company

  6060 Sepulveda Boulevard suite 100 Van Nuys, CA
  91411 

  (818) 881-7800 FAX (818) 776-8528

  	
   

  

 

PRELIMINARY REPORT

	
  ESCROW OFFICER: Helen Fonville

  	
  ORDER NO.: 19505132 - C

  
	
  TITLE OFFICER: Jon Legg - 758-6804 Fax 758-3263

  	
  Amendment

  
	
   

  	
  LOAN NO.: Natrol Real
  Estate II

  

 

	
  TO: 

  	
  Fidelity National Title

  
	
   

  	
  6060 Sepulveda Boulevard #100

  
	
   

  	
  Van Nuys, CA 91411

  

 

ATTN:                   Helen Fonville

YOUR
REFERENCE.: Fidelity National Title

SHORT TERM RATE: No

	
  PROPERTY ADDRESS:

  	
  9453 Owensmouth Avenue and 21411 Prairie Street,

  
	
   

  	
  Chatsworth area Los Angeles, California

  

 

EFFECTIVE
DATE: April 2, 2007, 07:30 A.M.

The
form of Policy or Policies of title insurance contemplated by this report is:

California Land Title Association Standard
Coverage Policy - 1990

American
Land Title Association Loan Policy (10-17-92) with A.L.T.A. Form 1 Coverage

1.             THE ESTATE OR
INTEREST IN THE LAND HEREINAFTER DESCRIBED OR REFERRED TO COVERED BY THIS
REPORT IS:

A FEE as to Parcel(s) 1 and
3;

AN EASEMENT more fully described below as to Parcel(s) 2

2.             TITLE TO SAID
ESTATE OR INTEREST AT THE DATE HEREOF IS VESTED IN:

Natrol Real Estate II, Inc., a California corporation

3.             THE LAND REFERRED
TO IN THIS REPORT IS SITUATED IN THE CITY OF LOS ANGELES, IN THE COUNTY OF LOS
ANGELES, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS:

SEE EXHIBIT “ONE” ATTACHED HERETO AND MADE A
PART HEREOF

RLK\RLK 04/03/2007

 1
 

EXHIBIT “ONE”

Parcel
1:

All
of Lots 7, 8, 9 and 10 of Tract No. 33150, in the City of Los Angeles, County
of Los Angeles, State of California, as per map filed in Book 910, Pages 63 to
65, inclusive of Maps, in the office of the County Recorder of said county.

Except
from that portion of said land lying Westerly of the Westerly lines of Lots 5
and 8 of Tract No. 22917, as per map recorded in Book 638, Pages 63 to 66 of
maps, all oil, asphaltum, petroleum, natural gas and other hydrocarbons and
other valuable mineral substances and products and all other minerals whether
or not of the same character herein before described generally in, under or
upon said land, but without the right to enter upon the surface of said land
and the subsurface lying above a depth of 500 feet below the surface thereof, to
mine, excavate, bore, drill and sink and otherwise collect and develop said
oils, petroleum, asphaltum, natural gas or other hydrocarbons or other valuable
mineral substances and products or any other mineral or minerals (whether of
the same character hereinabove described generally or not) and also to remove
and sell said oil, asphaltum natural gas or other hydrocarbons or other
valuable mineral substances and products or other mineral or minerals, as
granted to Porter Sesnon, Barbara Sesnon Cartan, William T. Sesnon, Jr. to each
an undivided one-third interest as tenants in common, as the separate property,
of each, by deed recorded December 14, 1951 in Book 37855, Page 1, Official
Records and recorded November 3, 1952 in Book 40220, Page 377, Official Records
and as quitclaimed by deed dated September 2, 1959 executed by Porter Sesnon,
Barbara Sesnon Cartan and William T. Sesnon, Jr., to the then record owner
recorded September 14, 1959 in Book D-600, Page 923, Official Records as
Instrument No. 3561.

Assessor’s
Parcel No. 2746-014-018

Parcel
2:

A
non-exclusive easement for vehicular staging, ingress and egress as provided in
that certain Easement Agreement recorded May 26, 1999 as Instrument No.
99-955816, Official Records, over a portion of Lot 4 of Tract No. 33150 in the
City of Los Angeles, County of Los Angeles, State of California, as per map
filed in Book 910 Pages 63 through 65 inclusive of Maps, in the office of the
County Recorder of said county, the easement lying 15.00 feet southerly, measured
at right angles, to the following described line:

Commencing
at the southwesterly corner of Lot 7 of said Tract No. 33150, said corner also
being the northwesterly corner of said Lot 4; Thence South 89°59 ‘39”East along
the southerly line of said Lot 7 and the northerly line of said Lot 4, 113.00
to the True Point of Beginning; Thence continuing along said last mentioned
line South 89°59 ‘39”east 311.32 feet to the Point of Termination, said point
also being North 89°59 ‘39”West, 148.00 feet from the southeasterly corner of
Lot 9 and the northeasterly corner of said Tract No. 33150.

Parcel
3:

The
Easterly 130 feet of Lot 2 and all of Lot 3 of Tract No. 33150, in the City of
Los Angeles, County of Los Angeles, State of California, as per map filed in
Book 910, Pages 63 to 65, inclusive of Maps, in the office of the County
Recorder of said county.

Except
from that portion of said land lying Westerly of the Westerly lines of Lots 5
and 8 of Tract No. 22917, as per map recorded in Book 638, Pages 63 to 66 of
maps, all oil, asphaltum, petroleum, natural gas and other hydrocarbons and
other valuable mineral

 2
 

substances
and products and all other minerals whether or not of the same character herein
before described generally in, under or upon said land, but without the right
to enter upon the surface of said land and the subsurface lying above a depth
of 500 feet below the surface thereof, to mine, excavate, bore, drill and sink
and otherwise collect and develop said oils, petroleum, asphaltum, natural gas
or other hydrocarbons or other valuable mineral substances and products or any
other mineral or minerals (whether of the same character hereinabove described
generally or not) and also to remove and sell said oil, asphaltum natural gas
or other hydrocarbons or other valuable mineral substances and products or
other mineral or minerals, as granted to Porter Sesnon, Barbara Sesnon Cartan,
William T. Sesnon, Jr. to each an undivided one-third interest as tenants in
common, as the separate property, of each, by deed recorded December 14, 1951
in Book 37855, Page 1, Official Records and recorded November 3, 1952 in Book
40220, Page 377, Official Records and as quitclaimed by deed dated September 2,
1959 executed by Porter Sesnon, Barbara Sesnon Cartan and William T. Sesnon,
Jr., to the then record owner recorded September 14, 1959 in Book D-600, Page
923, Official Records as Instrument No. 3561.

Assessor’s
Parcel No. 2746-014-003

 3
 

AT
THE DATE HEREOF, ITEMS TO BE CONSIDERED AND EXCEPTIONS TO COVERAGE IN ADDITION
TO THE PRINTED EXCEPTIONS AND EXCLUSIONS IN SAID POLICY FORM WOULD BE AS
FOLLOWS:

1.                                                                      Property taxes, which are a lien not yet due
and payable, including any assessments collected with taxes to be levied for
the fiscal year 2007-2008.

2.                                                                      Property taxes, including any personal
property taxes and any assessments collected with taxes, for the fiscal year
2006-2007, Assessor’s Parcel Number 2746-014-018.

	
  Code Area Number: 

  	
  0000016

  
	
  1st Installment:

  	
  $54,129.37 Paid

  
	
  2nd Installment:

  	
  $54,129.36 Not Paid

  
	
  Land:

  	
  $4,161,366.00

  
	
  Improvements:

  	
  $3,905,497.00

  
	
  Exemption:

  	
  $00

  
	
  Personal Property: 

  	
  $00

  
	
  Affects:

  	
  Parcel 1

  

 

3.                                                                      Property taxes, including any personal
property taxes and any assessments collected with taxes, for the fiscal year
2006-2007, Assessor’s Parcel Number 2746-014-003.

	
  Code Area Number: 

  	
  00016

  
	
  1st Installment:

  	
  $43,269.84 Paid

  
	
  2nd Installment:

  	
  $43,269.83 Not Paid 

  
	
  Land:

  	
  $3,154,765.00

  
	
  Improvements:

  	
  $3,553,141.00

  
	
  Exemption:

  	
  $

  
	
  Personal
  Property: 

  	
  $

  
	
  Affects:

  	
  Parcel 3

  

 

4.                                                                      The lien of supplemental taxes, if any,
assessed pursuant to the provisions of Chapter 3.5 (Commencing with Section 75)
of the Revenue and Taxation code of the State of California.

5.                                                                      Water rights, claims or title to water,
whether or not disclosed by the public records.

6.                                                                      A covenant and agreement entitled “Covenant
and Agreement regarding Submission of Landscape Plan”

	
  Executed by:

  	
  Almo Properties

  
	
  In favor of:

  	
  City of Los Angeles

  
	
  Recorded:

  	
  January 10, 1979, Instrument No. 79-40946, of
  Official Records

  

 

Which among other things provides: Landscape plan
submission 

Reference is hereby made to said document for full
particulars.

This covenant and agreement shall run with the land and shall be binding
upon any future owners, encumbrancers, their successors or assigns, and shall
continue in effect until the advisory agency approves termination.

 4
 

7.                                                                      A covenant and agreement entitled “Covenant
and Agreement for Traffic Control Plan”

	
  Executed by:

  	
  Almo Properties

  
	
  In favor of:

  	
  Advisory Agency of the City of Los Angeles

  
	
  Recorded:

  	
  January 11, 1979, Instrument No. 79-47472, of
  Official Records

  

 

Which among other things provides: submission of
traffic control plan 

Reference is hereby made to said document for full
particulars.

This covenant and agreement shall run with the land and shall be binding
upon any future owners, encumbrancers, their successors or assigns, and shall
continue in effect until the advisory agency  approves
termination.

8.                                                                      A covenant and agreement entitled “Covenant
and Agreement Regarding Parking Area and Driveway Plan”

	
  Executed by:

  	
  Almo Properties etal

  
	
  In favor of:

  	
  City of Los Angeles

  
	
  Recorded:

  	
  May 11, 1979, Instrument No. 79-514399, of Official
  Records

  

 

Which among other things provides: Parking and
Driveway Plan 

Reference is hereby made to said document for full
particulars.

This covenant and agreement shall run with the land and shall be binding
upon any future owners, encumbrancers, their successors or assigns, and shall
continue in effect until the advisory agency approves termination.

9.                                                                      A covenant and agreement entitled “Covenant
and Agreement Regarding Maintenance of Yards for an Oversized Building”

	
  Executed by:

  	
  David Alpert

  
	
  In favor of:

  	
  City of Los Angeles

  
	
   

  	
   

  
	
  Recorded:

  	
  September 17, 1979, Instrument No. 79-1033747, of
  Official Records

  

 

Which among other things provides: maintenance of yards

Reference is hereby made to said document for full particulars.

This covenant and agreement shall run with the land and shall be binding
upon any future owners, encumbrancers, their successors or assigns, and shall
continue in effect until the advisory agency approves termination.

Said matter is shown on the ALTA/ACSM Survey prepared by R,B. Engineering
on April 20, 1996, updated February 24, 2007, last updated March    ,
2007.

	
  Affects:

  	
  Parcels 1 and 2

  

 

10.                                                                Covenant and agreement wherein the owners
agree to hold said land as one parcel and not to sell any portion thereof
separately. Said covenant is expressed to run with the land and be binding upon
future owners.

	
  Recorded:

  	
  September 17, 1979,
  Instrument No. 79-1033748, of Official Records

  

 

Reference is made to said document for full particulars.

 5
 

This covenant and agreement shall run with the land and shall be binding
upon any future owners, encumbrancers, their successors or assigns, and shall
continue in effect until the advisory agency approves termination.

Affects:                             Parcel 1

11.                                                                A 5 foot easement contained in that certain
document entitled “Easement Agreement” dated May 26 1999, executed by and
between WHLW Real Estate Limited Partnership, a Delaware limited partnership
and Meissner Owensmouth LLC, a Delaware limited liability company recorded May
26, 1999, Instrument No. 99-955816, of Official Records, which document, among
other things, contains or provides for: covenants and conditions

Reference is hereby made to said document for full particulars.

Said Easement Agreement has been amended by a document recorded January 7
2000 as instrument no. 00-26822 of Official Records of said County.

Said matter is shown on the ALTA/ACSM Survey prepared by R,B. Engineering
on April 20, 1996, updated February 24, 2007, last updated March    ,
2007.

Affects:                             Parcels 1 and 2

12.                                                                The fact that the ownership of said land does
not include rights of access to or from the street, Canoga Avenue abutting said
land, such rights having been relinquished by the map of said 33150 as per map
recorded in Book 910 Pages 63 to 65 of Maps.

Said matter is shown on the ALTA Survey prepared by
Mark P. Pfeiler (LS 5959) of R.B. Engineering on April 20, 1996, last updated
March 5, 2007, signed on April 2, 2007.

Affects:                             Parcel 3

13.                                                                Covenant and Agreement wherein the owners
agree to hold said land as one parcel and not to sell any portion thereof
separately. Said covenant is expressed to run with the land and be binding upon
future owners.

Recorded:                          July 25, 1979, Instrument No. 79-818372, of
Official Records

This covenant and agreement shall run with the land and shall be binding
upon any future owners, encumbrancers, their successors or assigns, and shall
continue in effect until the advisory agency approves termination.

Affects:                             Parcel 3

14.                                                                Covenant and agreement wherein the owners
agree to hold said land as one parcel and not to sell any portion thereof
separately. Said covenant is expressed to run with the land and be binding upon
future owners.

Recorded:                          October 18, 1979, Instrument No. 79-1171494,
of Official Records

Reference is made to said document for full particulars.

This covenant and agreement shall run with the land and shall be binding
upon any future owners, encumbrancers, their successors or assigns, and shall
continue in effect until the advisory agency approves termination.

 6
 

 

	
  Affects:

  	
  Parcel 3

  

 

15.                                                                A Covenant and Agreement Regarding
Maintenance of Yards for an Oversized Building.

	
  Executed by:

  	
  Almo Properties

  
	
  In favor of:

  	
  City of Los Angeles

  
	
  Recorded:

  	
  February 10, 1982, Instrument No. 82-155090, of
  Official Records

  

 

Which among other things provides: maintenance of yards.

This covenant and agreement shall run with the land and shall be binding
upon any future owners, encumbrancers, their successors or assigns, and shall
continue in effect until the advisory agency approves termination.

Said matter is shown on the ALTA Survey prepared by
Mark P. Pfeiler (LS 5959) of R.B. Engineering on April 20, 1996, last updated
March 5, 2007, signed on April 2, 2007.

	
  Affects:

  	
  Parcel 3

  

 

16.                                                                Easement(s) for the purpose(s) shown below
and rights incidental thereto as granted in a document;

	
  Granted to:

  	
  Pacific Bell

  
	
  Purpose:

  	
  20 foot wide underground communications easement

  
	
  Recorded:

  	
  October 26, 1989, Instrument No. 89-1723964, of
  Official Records

  
	
  Affects:

  	
  a portion of said land as therein provided

  

 

Said matter is shown on the ALTA Survey prepared by
Mark P. Pfeiler (LS 5959) of R.B. Engineering on April 20, 1996, last updated
March 5, 2007, signed on April 2, 2007.

	
  Affects:

  	
  Parcel 3

  

 

17.                                                                A deed of trust to secure an indebtedness in
the amount shown below, and any other obligations secured thereby

	
  Amount:

  	
  $3,500,000.00

  
	
  Dated:

  	
  April 14, 1999

  
	
  Trustor:

  	
  Natrol Real Estate, Inc., a California corporation

  
	
  Trustee:

  	
  American Securities Company, a California
  corporation

  
	
  Beneficiary:

  	
  Wells Fargo Bank, National Association

  
	
  Loan No.:

  	
   

  
	
  Recorded:

  	
  May 13, 1999, Instrument No. 99-869674, of Official
  Records

  

 

An assignment of the beneficial interest under said deed of trust which
names:

	
  Assignee:

  	
  LaSalle Bank National Association, as trustee for
  Bear Stearns Commercial Mortgage Securities Inc., Commercial Pass Through
  Certificates, Series 2000-WF1

  
	
  Loan No.: 

  	
   

  
	
  Recorded:

  	
  May 19, 2000, Instrument No. 00-781146, of Official
  Records

  
	
   

  	
   

  
	
  Affects:

  	
  Parcel 3

  

 

 7
 

NOTE: Amended Civil Code Section 2941, which becomes effective on January
1, 2002 sets the fee for the processing and recordation of the reconveyance of
each Deed of Trust being paid through this transaction $45.00. The reconveyance
must be clearly set forth in the Beneficiary’s Payoff Demand Statement (“Demand”).
In addition, an assignment or authorized release of the fee, from the
Beneficiary to the Trustee of the record, must be included. an example of the
required language is as follows:

“The beneficiary identified above hereby assigns
releases or transfer to the Trustee of record, the sub of $45.00, included
herein as “Reconveyance Fee”, for the processing and recordation of the
Reconveyance of the Deed of Trust securing the indebtedness covered hereby, and
the escrow company or title processing this pay-off is authorized to deduct the
Reconveyance Fee from this Demand and forward said fee to the trustee of record
or the successor Trustee under the Trust Deed to be paid off in Full.”

In the event that the reconveyance fee and the assignment, release or
transfer are not included within the Demand Statement, then Fidelity National
Title Insurance Company and its Underwritten Agent may decline to process the
reconveyance and will be forced to return all documentation directly to the
Beneficiary for compliance with the requirements of the revised statute.

18.                                                                A Covenant and Agreement Regarding
Maintenance of Yards for an Oversized Building.

	
  Executed by:

  	
  Almo Properties

  
	
  In favor of:

  	
  City of Los Angeles

  
	
  Recorded:

  	
  December 17, 1996, Instrument No. 96-2036452, of
  Official Records

  

 

Which among other things provides: maintenance of yards.

An assignment of the beneficial interest under said deed of trust which
names:

	
  Assignee:

  	
  LaSalle Bank National Association, as trustee for
  the Registered Holders of Bear Stearns Commercial Mortgage Securities Inc.,
  Commercial Mortgage Pass Through Certificates, Series 2000-WF2

  
	
  Loan No.:

  	
   

  
	
  Recorded:

  	
  November 16, 2000, Instrument No. 00-1794294, of
  Official Records

  
	
   

  	
   

  
	
  Affects:

  	
  Parcels 1 and 2

  

 

19.                                                                Matters contained in that certain document
entitled “Landlord’s Waiver and Agreement” dated March 30, 2005, executed by
and between Natrol Real Estate II, Inc., a California corporation and Gilmore
Enterprises Window Coverings, Inc., a California corporation recorded August
12, 2005, Instrument No. 05-1935159, of Official Records, which document, among
other things, contains or provides for: As Set Out Therein.

Reference is hereby made to said document for full particulars.

	
  Affects:

  	
  Parcels 1 and 2

  

 

20.                                                                Matters contained in that certain document
entitled “Mortgage Agreement” dated August 25, 2006, executed by and between
Wachovia Capital Finance Corporation (Western), a California corporation and
LaSalle Bank National Association, as Trustee of the Bear Stearns Commercial
Mortgage Securities Inc., Commercial Mortgage Pass-Through Certificates, Series
2000-WF2 recorded October 25, 2006, Instrument No. 06-2372476, of Official
Records, which document, among other things, contains or provides for: As Set
Out Therein.

Reference is hereby made to said document for full particulars.

 8
 

 

	
  Affects:

  	
  Parcels 1 and 2

  

 

21.                                                                An unrecorded lease with certain terms,
covenants, conditions and provisions set forth therein as disclosed by the
document

	
  Entitled:

  	
  Subordination Agreement

  
	
  Lessor:

  	
  Natrol Real Estate Inc.

  
	
  Lessee:

  	
  Natrol, Inc.

  
	
  Recorded:

  	
  May 13, 1999, Instrument No. 99-869675, of Official
  Records

  

 

The present ownership of the leasehold created by said lease and other
matters affecting the interest of the lessee are not shown herein.

NOTE: Amended Civil Code Section 2941, which becomes effective on January
1, 2002 sets the fee for the processing and recordation of the reconveyance of
each Deed of Trust being paid through this transaction $45.00. The reconveyance
must be clearly set forth in the Beneficiary’s Payoff Demand Statement (“Demand”).
In addition, an assignment or authorized release of the fee, from the
Beneficiary to the Trustee of the record, must be included. an example of the
required language is as follows:

“The beneficiary identified above hereby assigns
releases or transfer to the Trustee of record, the sub of $45.00, included
herein as “Reconveyance Fee”, for the processing and recordation of the
Reconveyance of the Deed of Trust securing the indebtedness covered hereby, and
the escrow company or title processing this pay-off is authorized to deduct the
Reconveyance Fee from this Demand and forward said fee to the trustee of record
or the successor Trustee under the Trust Deed to be paid off in Full.”

In the event that the reconveyance fee and the assignment, release or
transfer are not included within the Demand Statement, then Fidelity National
Title Insurance Company and its Underwritten Agent may decline to process the
reconveyance and will be forced to return all documentation directly to the
Beneficiary for compliance with the requirements of the revised statute.

22.                                                                A deed of trust to secure an indebtedness in
the amount shown below, and any other obligations secured thereby

	
  Amount:

  	
  $5,400,000.00

  
	
  Dated:

  	
  December 13, 1999

  
	
  Trustor:

  	
  Natrol Real Estate II, Inc., a California
  corporation

  
	
  Trustee:

  	
  American Securities Company, a California
  corporation

  
	
  Beneficiary:

  	
  Wells Fargo Bank, National Association

  
	
  Loan No.:

  	
   

  
	
  Recorded:

  	
  December 16, 1999, Instrument No. 99-2318475, of
  Official Records

  

 

23.                                                                Any rights of the parties in possession of a
portion of, or all of, said land, which rights are not disclosed by the public
record.

This Company will require, for review, a full and complete copy of any
unrecorded agreement, contract, license and/or lease, together with all
supplements, assignments and amendments thereto, before issuing any policy of
title insurance without excepting this item from coverage. The Company reserves
the right to except additional items and/or make additional requirements after
reviewing said documents.

 9
 

24.                                                                In order to complete this report, this
Company requires a Statement of Information to be completed by the following
party,

	
  Party:

  	
  All Parties

  

 

The Company reserves the right to add additional items or make further
requirements after review of the requested Statement(s) of Information.

25.                                                                The application for title insurance was
placed by reference to only a street address or tax identification number.

Based on our records, we believe that the description in this report
covers the parcel requested, however, if the legal description is incorrect a
new report must be prepared.

If the legal description is incorrect, in order to prevents delays, the
seller, buyer and/or borrower must provided the company and/or the settlement
agent with the correct legal description intended to be the subject of this
transaction.

26.                                                                The transaction contemplated in connection
with this Report is subject to the review and approval of the Company’s
Corporate Underwriting Department. The Company reserves the right to add
additional items or make further requirements after such review.

27.                                                                This Company will require the following
documents for review prior to the issuance of any title assurance predicated
upon a conveyance or encumbrance by the corporation named below.

	
  Corporation:

  	
  Natrol Real Estate II, Inc., a California corporation,

  
	
   

  	
   

  
	
  (a)

  	
  A copy of the corporation By-Laws and Articles of
  Incorporation.

  
	
   

  	
   

  
	
  (b)

  	
  An original or certified copy of the Resolution
  authorizing the transaction contemplated herein.

  
	
   

  	
   

  
	
  (c)

  	
  If the Articles and/or By-Laws require approval by a
  “parent” organization, a copy of the Articles and By-Laws of the parent.

  

 

The right is reserved to add requirements or additional items after
completion of such review.

END OF
ITEMS

Note 1.              The current owner does NOT qualify for the
$20.00 discount pursuant to the coordinated stipulated judgments entered in
actions filed by both the Attorney General and private class action plaintiffs
for the herein described property.

Note 2.              NOTE: The policy of title insurance will
include an arbitration provision. The Company or the insured may demand
arbitration. Arbitrable matters may include, but are not limited to, any
controversy or claim between the Company and the insured arising out of or
relating to this policy, any service of the Company in connection with its
issuance or the breach of a policy provision or other obligation. Please ask
your escrow or title officer for a sample copy of the policy to be issued if
you wish to review the arbitration provisions and any other provisions
pertaining to your Title Insurance coverage.

 10
 

Note 3.              None
of the items shown in this report will cause the Company to decline to attach
CLTA Endorsement Form 100 to an Extended Coverage Loan Policy, when issued.

Note 4.              The Company is not aware of any matters which
would cause it to decline to attach the CLTA Endorsement Form 116 indicating
that there is located on said land Commercial known as 9453 Owensmouth Avenue
(Chatsworth Area), Los Angeles, CA to an Extended Coverage Loan Policy.

Note 5.              California Revenue and Taxation Code Section
18662, effective January 1, 1994 and by amendment effective January 1, 2003,
provides that the buyer in all sales of California Real Estate may be required
to withhold 3 and 1/3% of the total sales price as California State Income Tax,
subject to the various provisions of the law as therein contained.

Note 6.              There are NO deeds affecting said land,
recorded within twenty-four (24) months of the date of this report.

Note 7.              WIRE INSTRUCTIONS

COMERICA BANK CALIFORNIA 

Financial Services Group 

2321 Rosecrans Avenue, Suite
1225 

El Segundo, CA, 90245

Routing No. 121137522

For Credit to FIDELITY NATIONAL TITLE

Account No. 1891608570 

Attn: Payoff Department 

Ref: Order No. 19505132 

Title Officer: Jon Legg

	
  

  	
  Fidelity
  National Title Company 

  OF CALIFORNIA

  

 

 11

Notice

You may be entitled to
receive a $20.00 discount on escrow services if you purchased, sold or
refinanced residential property in California between May 19, 1995 and November
1, 2002. If you had more than one qualifying transaction, you may be entitled
to multiple discounts.

If your previous transaction
involved the same property that is the subject of your current transaction, you
do not have to do anything; the Company will provide the discount, provided you
are paying for escrow or title services in this transaction.

If your previous transaction
involved property different from the property that is the subject of your
current transaction, you must - prior to the close of the current transaction -
inform the Company of the earlier transaction, provide the address of the
property involved in the previous transaction, and the date or approximate date
that the escrow closed to be eligible for the discount.

Unless you inform the
Company of the prior transaction on property that is not the subject of this transaction,
the Company has no obligation to conduct an investigation to determine if you
qualify for a discount. If you provide the Company information concerning a
prior transaction, the Company is required to determine if you qualify for a
discount which is subject to other terms and conditions.

Effective through November
1, 2014

Fidelity National Financial Group of Companies’
Privacy Statement

July 1, 2001

We
recognize and respect the privacy expectations of today’s consumers and the
requirements of applicable federal and state privacy laws. We believe that
making you aware of how we use your non-public personal information (°Personal
Information±),and to whom it is disclosed, will form the basis for a
relationship of trust between us and the public that we serve. This Privacy
Statement provides that explanation. We reserve the right to change this
Privacy Statement from time to time consistent with applicable privacy laws.

In
the course of our business, we may collect Personal Information about you from
the following sources:

From
applications or other forms we receive from you or your authorized
representative;

From
your transactions with, or from the services being performed by, us, our
affiliates, or others;  

From
our internet web sites;

From
the public records maintained by governmental entities that we either obtain
directly from those entities, or from our affiliates or others; and

From consumer or other reporting agencies.

Our
Policies Regarding the Protection of the Confidentiality and Security of Your
Personal Information

We
maintain physical, electronic and procedural safeguards to protect your
Personal Information from unauthorized access or intrusion. We limit access to
the Personal Information only to those employees who need such access in connection
with providing products or services to you or for other legitimate business
purposes.

Our
Policies and Practices Regarding the Sharing of Your Personal Information

We may share your Personal Information with
our affiliates, such as insurance companies, agents, and other real estate
settlement service providers. We also may disclose your Personal Information:  

to
agents, brokers or representatives to provide you with services you have
requested;  

to
third-party contractors or service providers who provide services or perform
marketing or other functions on our behalf; and

to others with whom we enter into joint
marketing agreements for products or services that we believe you may find of
interest.

In
addition, we will disclose your Personal Information when you direct or give us
permission, when we are required by law to do so, or when we suspect fraudulent
or criminal activities. We also may disclose your Personal Information when
otherwise permitted by applicable privacy laws such as, for example, when
disclosure is needed to enforce our rights arising out of any agreement,
transaction or relationship with you.

One
of the important responsibilities of some of our affiliated companies is to
record documents in the public domain. Such documents may contain your Personal
Information.

Right
to Access Your Personal Information and Ability to Correct Errors or Request
Changes or Deletion

Certain
states afford you the right to access your Personal Information and, under
certain circumstances, to find out to whom your Personal Information has been
disclosed. Also, certain states afford you the right to request correction,
amendment or deletion of your Personal Information. We reserve the right, where
permitted by law, to charge a reasonable fee to cover the costs incurred in
responding to such requests.

All
requests must be made in writing to the following address:

	
   

  	
  Privacy Compliance Officer

  	
   

  
	
   

  	
  Fidelity
  National Financial, Inc.

  	
   

  
	
   

  	
  601 Riverside
  Avenue

  	
   

  
	
   

  	
  Jacksonville, FL
  32204

  	
   

  

 

Multiple
Products or Services

If
we provide you with more than one financial product or service, you may receive
more than one privacy notice from us. We apologize for any inconvenience this
may cause you.

“Preliminary Report Top Sheet”

Help us stay on top of your transaction!

WILL ANY OF
THESE SITUATIONS

AFFECT YOUR TRANSACTION?

	
  *

  	
  Are your principals exchanging this property?

  	
  o
  Yes

  	
  o
  No

  
	
   

  	
   

  	
   

  	
   

  
	
  *

  	
  Will your principals be using a power of attorney?

  	
  o
  Yes

  	
  o
  No

  
	
   

  	
   

  	
   

  	
   

  
	
  *

  	
  Are any of the parties in title deceased?

  	
  o
  Yes

  	
  o
  No

  
	
   

  	
   

  	
   

  	
   

  
	
  *

  	
  Has there been a change in marital status?

  	
  o
  Yes

  	
  o
  No

  
	
   

  	
   

  	
   

  	
   

  
	
  *

  	
  Will there be a new entity formed? ie., partnership
  or corporation.

  	
  o
  Yes

  	
  o
  No

  
	
   

  	
   

  	
   

  	
   

  
	
  *

  	
  Are the sellers of this property non-residents of
  California?

  	
  o
  Yes

  	
  o
  No

  

 

If you answered “YES” to any of
these questions, 

please call your Escrow Officer.

	
  *

  	
  Do all parties signing
  document have valid photo I.D. or drivers license?

  	
  o
  Yes

  	
  o
  No

  

 

If “No”, now is the time to apply for a valid I.D.

This is a “Quick List”, call
your Escrow Officer if you have additional information that you think may be
important, or if you have any questions.

Thank you
for choosing 

Fidelity National Title Company

 

	
  

  	
  Fidelity
  National Title Company 

  OF CALIFORNIA

  

 

PRELIMINARY REPORT

In response to the application for a policy of
title insurance referenced herein, Fidelity National
Title Company hereby reports that it is prepared to issue,
or cause to be issued, as of the date hereof, a Policy or Policies of Title
Insurance describing the land and the estate or interest therein hereinafter
set forth, insuring against loss which may be sustained by reason of any
defect, lien or encumbrance not shown or referred to as an Exception herein or
not excluded from coverage pursuant to the printed Schedules, Conditions and
Stipulations of said Policy forms.

The printed Exceptions and Exclusions from the coverage
and Limitations on Covered Risks of said Policy or Policies are set forth in
Exhibit A attached. Limitations on Covered Risks applicable to the CLTA and
ALTA Homeowner’s Policies of Title Insurance which establish a Deductible
Amount and a Maximum Dollar Limit of Liability for certain coverages are also
set forth in Exhibit A. Copies of the Policy forms should be read. They are
available from the office which issued this report.

This report (and any supplements or amendments
hereto) is issued solely for the purpose of facilitating the issuance of a
policy of title insurance and no liability is assumed hereby. If it is desired
that liability be assumed prior to the issuance of a policy of title insurance,
a Binder or Commitment should be requested.

The Policy(s) of title insurance to be issued
hereunder will be policy(s) of Fidelity National Title Insurance Company, a
California Corporation.

Please read the exceptions shown or referred to
below and the exceptions and exclusions set forth in Exhibit A of this report
carefully. The exceptions and exclusions are meant to provide you with notice
of matters which are not covered under the terms of the title insurance policy
and should be carefully considered.

It is important to note that this preliminary report
is not a written representation as to the condition of title and may not list
all liens, defects and encumbrances affecting title to the land.

	
  

  	
  

  

 

	
  

  	
  Fidelity
  National Title Company

  6060 Sepulveda Boulevard suite 100 Van Nuys, CA
  91411 

  (818) 881-7800 FAX (818) 776-8528

  	
   

  

 

PRELIMINARY REPORT

	
  ESCROW OFFICER: Helen Fonville

  TITLE OFFICER: Jon Legg - 758-6804 Fax 758-3263

  	
   

  	
  ORDER NO.: 19505132 

   

  LOAN NO.: Natrol Real
  Estate

  

 

	
  TO:

  	
  CB Richard Ellis

  
	
   

  	
  10 Universal City Plaza 27th Floor

  
	
   

  	
  Universal City, CA 91608

  

 

ATTN:                   Bennett Robinson 

YOUR REFERENCE.: 21411
Prairie

SHORT TERM RATE: No

PROPERTY ADDRESS:                      21411 Prairie
Street (Chatsworth Area), Los Angeles, California

EFFECTIVE
DATE: March 23, 2007, 07:30 A.M.

The
form of Policy or Policies of title insurance contemplated by this report is:

California Land Title Association Standard Coverage
Policy - 1990

American
Land Title Association Loan Policy (10-17-92) with A.L.T.A. Form 1 Coverage

1.             THE ESTATE OR
INTEREST IN THE LAND HEREINAFTER DESCRIBED OR REFERRED TO COVERED BY THIS
REPORT IS:

A Fee

2.             TITLE TO SAID
ESTATE OR INTEREST AT THE DATE HEREOF IS VESTED IN:

Natrol Real Estate, Inc., a California corporation

3.             THE LAND REFERRED
TO IN THIS REPORT IS SITUATED IN THE CITY OF LOS ANGELES, IN THE COUNTY OF LOS
ANGELES, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS:

SEE EXHIBIT “ONE” ATTACHED HERETO AND MADE A
PART HEREOF

RLK\RLK 03/25/2007

 1
 

EXHIBIT “ONE”

The
Easterly 130 feet of Lot 2 and all of Lot 3 of Tract No. 33150, in the City of
Los Angeles, County of Los Angeles, State of California, as per map filed in
Book 910, Pages 63 to 65, inclusive of Maps, in the office of the County
Recorder of said county.

Except
from that portion of said land lying Westerly of the Westerly lines of Lots 5
and 8 of Tract No. 22917, as per map recorded in Book 638, Pages 3 to 66 of
maps, all oil, asphaltum, petroleum, natural gas and other hydrocarbons and
other valuable mineral substances and products and all other minerals whether
or not of the same character herein before described generally in, under or
upon said land, but without the right to enter upon the surface of said land
and the subsurface lying above a depth of 500 feet below the surface thereof,
to mine, excavate, bore, drill and sink and otherwise collect and develop said
oils, petroleum, asphaltum, natural gas or other hydrocarbons or other valuable
mineral substances and products or any other mineral or minerals (whether of
the same character hereinabove described generally or not) and also to remove
and sell said oil, asphaltum natural gas or other hydrocarbons or other
valuable mineral substances and products or other mineral or minerals, as
granted to Porter Sesnon, Barbara Sesnon Cartan, William T. Sesnon, Jr. to each
an undivided one-third interest as tenants in common, as the separate property,
of each, by deed recorded December 14, 1951 in Book 37855, Page 1, Official
Records and recorded November 3, 1952 in Book 40220, Page 377, Official Records
and as quitclaimed by deed dated September 2, 1959 executed by Porter Sesnon,
Barbara Sesnon Cartan and William T. Sesnon, Jr., to the then record owner
recorded September 14, 1959 in Book D-600, Page 923, Official Records as
Instrument No. 3561.

Assessor’s
Parcel No: 2746-014-003

 2
 

AT
THE DATE HEREOF, ITEMS TO BE CONSIDERED AND EXCEPTIONS TO COVERAGE IN ADDITION
TO THE PRINTED EXCEPTIONS AND EXCLUSIONS IN SAID POLICY FORM WOULD BE AS
FOLLOWS:

1.                                                                      Property taxes, which are a lien not yet due
and payable, including any assessments collected with taxes to be levied for
the fiscal year 2007-2008.

2.                                                                      Property taxes, including any personal
property taxes and any assessments collected with taxes, for the fiscal year
2006-2007, Assessor’s Parcel Number 2746-014-003.

	
  Code Area Number:

  	
  0000016

  
	
  1st Installment:

  	
  $43,269.84 Paid

  
	
  2nd Installment:

  	
  $43,269.83 Not Paid

  
	
  Land:

  	
  $3,154,765.00

  
	
  Improvements:

  	
  $3,553,141.00

  
	
  Exemption:

  	
  $00

  
	
  Personal Property:

  	
  $00

  
	
  Bill No.:

  	
  2

  

 

3.                                                                      The lien of supplemental taxes, if any,
assessed pursuant to the provisions of Chapter 3.5 (Commencing with Section 75)
of the Revenue and Taxation code of the State of California. As of the date
hereof, no such supplemental taxes are due or payable.

4.                                                                      Water rights, claims or title to water,
whether or not disclosed by the public records.

5.                                                                      The fact that the ownership of said land does
not include rights of access to or from the street, Canoga Avenue abutting said
land, such rights having been relinquished by the map of said Tract 33150 as
per map recorded in Book 910 Pages 63 to 65 of Maps.

Said matter is shown on the ALTA Survey prepared by R.B. Engineering on
April 20, 1996, last updated March 5, 2007.

6.                                                                      A covenant and agreement entitled “Covenant
and Agreement Regarding Submission of Landscape Plan”

	
  Executed by:

  	
  Almo Properties

  
	
  In favor of:

  	
  City of Los Angeles

  
	
  Recorded:

  	
  January 10, 1979, Instrument No. 79-40946, of
  Official Records 

  

 

Which among other things provides: Submission of
Landscape Plan

Reference is hereby made to said document for full
particulars.

This covenant and agreement shall run with the land and shall be binding
upon any future owners, encumbrancers, their successors or assigns, and shall
continue in effect until the advisory agency approves termination.

 3
 

7.                                                                      A covenant and agreement entitled “Covenant
and Agreement for Traffic Control Plan”

	
  Executed by:

  	
  Almo Properties etal

  
	
  In favor of:

  	
  City of Los Angeles

  
	
  Recorded:

  	
  January 11, 1979, Instrument No. 79-47472, of
  Official Records 

  

 

Which among other things provides: Matters pertaining
to a Traffic Control Plan

Reference is hereby made to said document for full
particulars.

This covenant and agreement shall run with the land and shall be binding
upon any future owners, encumbrancers, their successors or assigns, and shall
continue in effect until the advisory agency approves termination.

8.                                                                      A covenant and agreement entitled “Covenant
and Agreement Regarding Parking Area and Driveway Plan”

	
  Executed by:

  	
  Almo Properties etal

  
	
  In favor of:

  	
  City of Los Angeles

  
	
  Recorded:

  	
  May 11, 1978, Instrument No. 79-514399, of Official
  Records

  

 

Which among other things provides: Requirement for submission of parking
plan and driveway plan.

Reference is hereby made to said document for full particulars.

This covenant and agreement shall run with the land and shall be binding
upon any future owners, encumbrancers, their successors or assigns, and shall
continue in effect until the advisory agency approves termination.

9.                                                                      A covenant and agreement entitled “Covenant
and Agreement to Hold Property as One Parcel”

	
  Executed by:

  	
  Almo Properties

  
	
  In favor of:

  	
  City of Los Angeles

  
	
  Recorded:

  	
  July 25, 1979, Instrument No. 79-818372, of Official
  Records 

  

 

Which among other things provides: To hold said land
as one parcel of land.

Reference is hereby made to said document for full
particulars.

This covenant and agreement shall run with the land and shall be binding
upon any future owners, encumbrancers, their successors or assigns, and shall
continue in effect until the advisory agency approves termination.

10.                                                                A covenant and agreement entitled “Covenant
and Agreement to Hold Property as One Parcel”

	
  Executed by:

  	
  David Alpert

  
	
  In favor of:

  	
  City of Los Angeles

  
	
  Recorded:

  	
  October 18, 1979, Instrument No. 79-1171494, of
  Official Records

  

 

Which among other things provides: Holding said land as in Parcel to
comply with Parcel Map Exemption 2164.

Reference is hereby made to said document for full particulars.

This covenant and agreement shall run with the land and shall be binding
upon any future owners, encumbrancers, their successors or assigns, and shall
continue in effect until the advisory agency approves termination.

 4
 

11.                                                                A covenant and agreement entitled “Covenant
and Agreement Regarding Maintenance of Yards for an Oversized Building” 

	
  Executed by:

  	
  Almo Properties

  
	
  In favor of:

  	
  City of Los Angeles

  
	
  Recorded:

  	
  February 10, 1982, Instrument No. 82-155090, of
  Official Records

  

 

Which among other things provides: Maintenance of yards.

Reference is hereby made to said document for full particulars.

This covenant and agreement shall run with the land and shall be binding
upon any future owners, encumbrancers, their successors or assigns, and shall
continue in effect until the advisory agency approves termination.

Said matter is shown on the ALTA Survey prepared by R.B. Engineering on
April 20, 1996, last updated March 5, 2007.

12.                                                                Easement(s) for the purpose(s) shown below
and rights incidental thereto as set forth in a document;

	
  In favor of:

  	
  Pacific Bell

  
	
  Purpose:

  	
  20 foot wide underground communications easement

  
	
  Recorded:

  	
  October 26, 1989, Instrument No. 89-1723964, of
  Official Records

  
	
  Affects:

  	
  As Set Out Therein

  

 

Said matter is shown on the ALTA Survey prepared by R.B. Engineering on
April 20, 1996, last updated March 5, 2007.

13.                                                                A covenant and agreement entitled “Covenant
and Agreement Regarding Maintenance of Yards for an Oversized Building”

	
  Executed by:

  	
  Lincoln Whitehall Realty, L.L.C., a Delaware Limited
  Liability company

  
	
  In favor of:

  	
  City of Los Angeles

  
	
  Recorded:

  	
  December 17, 1996, Instrument No. 96-2036452, of
  Official Records

  

 

Which among other things provides: matters pertaining to maintenancve of
yards

Reference is hereby made to said document for full particulars.

This covenant and agreement shall run with the land and shall be binding
upon any future owners, encumbrancers, their successors or assigns, and shall
continue in effect until the advisory agency approves termination.

Said matter is shown on the ALTA Survey prepared by R.B. Engineering on
April 20, 1996, last updated March 5, 2007.

14.                                                                A deed of trust to secure an indebtedness in
the amount shown below, and any other obligations secured thereby

	
  Amount:

  	
  $3,500,000.00

  
	
  Dated:

  	
  April 14, 1999

  
	
  Trustor:

  	
  Natrol Real Estate, Inc, a California corporation

  
	
  Trustee:

  	
  American Securities Company, a California
  corporation

  
	
  Beneficiary:

  	
  Wells Fargo Bank, National Association

  
	
  Loan No.:

  	
   

  
	
  Recorded:

  	
  May 13, 1999, Instrument No. 99-869674, of Official
  Records

  

 

 5
 

NOTE: Amended Civil Code Section 2941, which becomes effective on January
1, 2002 sets the fee for the processing and recordation of the reconveyance of
each Deed of Trust being paid through this transaction $45.00. The reconveyance
must be clearly set forth in the Beneficiary’s Payoff Demand Statement (“Demand”).
In addition, an assignment or authorized release of the fee, from the
Beneficiary to the Trustee of the record, must be included. an example of the
required language is as follows:

“The beneficiary identified above hereby assigns
releases or transfer to the Trustee of record, the sub of $45.00, included
herein as “Reconveyance Fee”, for the processing and recordation of the
Reconveyance of the Deed of Trust securing the indebtedness covered hereby, and
the escrow company or title processing this pay-off is authorized to deduct the
Reconveyance Fee from this Demand and forward said fee to the trustee of record
or the successor Trustee under the Trust Deed to be paid off in Full.”

In the event that the reconveyance fee and the assignment, release or
transfer are not included within the Demand Statement, then Fidelity National
Title Insurance Company and its Underwritten Agent may decline to process the
reconveyance and will be forced to return all documentation directly to the
Beneficiary for compliance with the requirements of the revised statute.

An assignment of the beneficial interest under said deed of trust which
names:

	
  Assignee:

  	
  LaSalle Bank National Association, as trustee for
  Bear Stearns Commercial Mortgage Securities Inc., Commercial Pass-Through
  Certificates, Series 2000-WF1

  
	
  Loan No.:

  	
   

  
	
  Recorded:

  	
  May 19, 2000, Instrument No. 00-781146, of Official
  Records

  

 

15.                                                                An unrecorded lease with certain terms,
covenants, conditions and provisions set forth therein as disclosed by the
document

	
  Entitled:

  	
  Subordination Agreement

  
	
  Lessor:

  	
  Natrol Real Estate, Inc

  
	
  Lessee:

  	
  Natrol Inc

  
	
  Recorded:

  	
  May 13, 1999, Instrument No. 99-869675, of Official
  Records

  

 

The present ownership of the leasehold created by said lease and other
matters affecting the interest of the lessee are not shown herein.

16.                                                                Matters contained in that certain document
entitled “Mortgage Agreement” dated August 25, 2006, executed by and between
Wachovia Capital Finance Corporation (Western), a California corporation and
LaSalle Bank National Association, as Trustee of the Bear Stearns Commercial
Mortgage Securities Inc., Commercial Mortgage Pass-Through Certificates, Series
2000-WF1 recorded November 6, 2006, Instrument No. 06-2462986, of Official
Records, which document, among other things, contains or provides for: As set
Out Therein.

Reference is hereby made to said document for full particulars.

 6
 

17.                                                                This Company will require the following
documents for review prior to the issuance of any title assurance predicated
upon a conveyance or encumbrance by the corporation named below.

	
  Corporation:

  	
  Natrol Real Estate, Inc., a California corporation,

  
	
   

  	
   

  
	
  (a)

  	
  A copy of the corporation By-Laws and Articles of
  Incorporation.

  
	
   

  	
   

  
	
  (b)

  	
  An original or certified copy of the Resolution
  authorizing the transaction contemplated herein.

  
	
   

  	
   

  
	
  (c)

  	
  If the Articles and/or By-Laws require approval by a
  “parent” organization, a copy of the Articles and By-Laws of the parent.

  

 

The right is reserved to add requirements or additional items after
completion of such review.

18.                                                                The transaction contemplated in connection
with this Report is subject to the review and approval of the Company’s
Corporate Underwriting Department. The Company reserves the right to add
additional items or make further requirements after such review.

19.                                                                Any rights of the parties in possession of a
portion of, or all of, said land, which rights are not disclosed by the public
record.

This Company will require, for review, a full and complete copy of any
unrecorded agreement, contract, license and/or lease, together with all supplements,
assignments and amendments thereto, before issuing any policy of title
insurance without excepting this item from coverage. The Company reserves the
right to except additional items and/or make additional requirements after
reviewing said documents.

20.                                                                In order to complete this report, this
Company requires a Statement of Information to be completed by the following
party,

	
  Party:

  	
  All Parties

  

 

The Company reserves the right to add additional items or make further
requirements after review of the requested Statement(s) of Information.

21.                                                                The application for title insurance was
placed by reference to only a street address or tax identification number.

Based on our records, we believe that the description in this report
covers the parcel requested, however, if the legal description is incorrect a
new report must be prepared.

If the legal description is incorrect, in order to prevents delays, the
seller, buyer and/or borrower must provided the company and/or the settlement
agent with the correct legal description intended to be the subject of this
transaction.

END OF
ITEMS

Note 1.                                         The current owner does NOT qualify for the
$20.00 discount pursuant to the coordinated stipulated judgments entered in actions
filed by both the Attorney General and private class action plaintiffs for the
herein described property.

 7
 

Note 2.                                         NOTE: The policy of title insurance will
include an arbitration provision. The Company or the insured may demand
arbitration. Arbitrable matters may include, but are not limited to, any
controversy or claim between the Company and the insured arising out of or
relating to this policy, any service of the Company in connection with its
issuance or the breach of a policy provision or other obligation. Please ask
your escrow or title officer for a sample copy of the policy to be issued if
you wish to review the arbitration provisions and any other provisions
pertaining to your Title Insurance coverage.

Note 3.                                         None of the items shown in this report will
cause the Company to decline to attach CLTA Endorsement Form 100 to an Extended
Coverage Loan Policy, when issued.

Note 4.                                         The Company is not aware of any matters which
would cause it to decline to attach the CLTA Endorsement Form 116 indicating that
there is located on said land Commercial known as 21411 Prairie Street (Chatsworth
Area), Los Angeles, CA to an Extended Coverage Loan Policy.

Note 5.                                         California Revenue and Taxation Code Section
18662, effective January 1, 1994 and by amendment effective January 1, 2003,
provides that the buyer in all sales of California Real Estate may be required
to withhold 3 and 1/3% of the total sales price as California State Income Tax,
subject to the various provisions of the law as therein contained.

Note 6.                                         There are NO deeds affecting said land,
recorded within twenty-four (24) months of the date of this report.

Note 7.                                         WIRE INSTRUCTIONS

	
  COMERICA BANK CALIFORNIA

  
	
  Financial
  Services Group

  
	
  2321 Rosecrans
  Avenue, Suite 1225

  
	
  El Segundo, CA,
  90245

  
	
   

  
	
  Routing No.
  121137522

  
	
  For Credit to
  FIDELITY NATIONAL TITLE

  
	
   

  
	
  Account No.
  1891608570

  
	
  Attn: Payoff
  Department

  
	
  Ref: Order No.
  19505131

  
	
  Title Officer:
  Jon Legg

  

 

	
  

  	
  Fidelity
  National Title Company 

  OF CALIFORNIA

  

 

 8

Notice

You may be entitled to
receive a $20.00 discount on escrow services if you purchased, sold or
refinanced residential property in California between May 19, 1995 and November
1, 2002. If you had more than one qualifying transaction, you may be entitled
to multiple discounts.

If your previous transaction
involved the same property that is the subject of your current transaction, you
do not have to do anything; the Company will provide the discount, provided you
are paying for escrow or title services in this transaction.

If your previous transaction
involved property different from the property that is the subject of your
current transaction, you must - prior to the close of the current transaction -
inform the Company of the earlier transaction, provide the address of the
property involved in the previous transaction, and the date or approximate date
that the escrow closed to be eligible for the discount.

Unless you inform the
Company of the prior transaction on property that is not the subject of this transaction,
the Company has no obligation to conduct an investigation to determine if you
qualify for a discount. If you provide the Company information concerning a
prior transaction, the Company is required to determine if you qualify for a
discount which is subject to other terms and conditions.

Effective through November
1, 2014

Fidelity National Financial Group of Companies’
Privacy Statement

July 1, 2001

We
recognize and respect the privacy expectations of today’s consumers and the
requirements of applicable federal and state privacy laws. We believe that
making you aware of how we use your non-public personal information (°Personal
Information±),and to whom it is disclosed, will form the basis for a
relationship of trust between us and the public that we serve. This Privacy
Statement provides that explanation. We reserve the right to change this
Privacy Statement from time to time consistent with applicable privacy laws.

In
the course of our business, we may collect Personal Information about you from
the following sources:

From
applications or other forms we receive from you or your authorized
representative;

From
your transactions with, or from the services being performed by, us, our
affiliates, or others;

From
our internet web sites;

From
the public records maintained by governmental entities that we either obtain
directly from those entities, or from our affiliates or others; and 

From consumer or other reporting agencies.

Our
Policies Regarding the Protection of the Confidentiality and Security of Your
Personal Information

We
maintain physical, electronic and procedural safeguards to protect your
Personal Information from unauthorized access or intrusion. We limit access to
the Personal Information only to those employees who need such access in connection
with providing products or services to you or for other legitimate business
purposes.

Our
Policies and Practices Regarding the Sharing of Your Personal Information

We may share your Personal Information with
our affiliates, such as insurance companies, agents, and other real estate
settlement service providers. We also may disclose your Personal Information:

to
agents, brokers or representatives to provide you with services you have
requested;  

to
third-party contractors or service providers who provide services or perform
marketing or other functions on our behalf; and

to others with whom we enter into joint
marketing agreements for products or services that we believe you may find of
interest.

In
addition, we will disclose your Personal Information when you direct or give us
permission, when we are required by law to do so, or when we suspect fraudulent
or criminal activities. We also may disclose your Personal Information when
otherwise permitted by applicable privacy laws such as, for example, when
disclosure is needed to enforce our rights arising out of any agreement,
transaction or relationship with you.

One
of the important responsibilities of some of our affiliated companies is to
record documents in the public domain. Such documents may contain your Personal
Information.

Right
to Access Your Personal Information and Ability to Correct Errors or Request
Changes or Deletion

Certain
states afford you the right to access your Personal Information and, under
certain circumstances, to find out to whom your Personal Information has been
disclosed. Also, certain states afford you the right to request correction,
amendment or deletion of your Personal Information. We reserve the right, where
permitted by law, to charge a reasonable fee to cover the costs incurred in
responding to such requests.

All
requests must be made in writing to the following address:

	
  

  	
  Privacy Compliance Officer

  	
   

  
	
   

  	
  Fidelity
  National Financial, Inc.

  	
   

  
	
   

  	
  601 Riverside
  Avenue

  	
   

  
	
   

  	
  Jacksonville, FL
  32204

  	
   

  

 

Multiple
Products or Services

If
we provide you with more than one financial product or service, you may receive
more than one privacy notice from us. We apologize for any inconvenience this
may cause you.

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