Document:

The Cheesecake Factory Inc.

	 

EXHIBIT 10.2 

AGREEMENT OF PURCHASE
AND SALE

AND JOINT ESCROW INSTRUCTIONS 

	

TABLE OF CONTENTS 

			
	 				Page
	1.		Purchase
      and Sale		2	
	 					
	2.		Purchase
      Price		2	
	 					
	3.		Payment
      of Purchase Price		2	
	 					
	4.		Escrow		3	
	 					
	5.		Condition
      of Title		3	
	 					
	6.		Title Policy		4	
	 					
	7.		Conditions
      to Close of Escrow		4	
	 					
	8.		Deposits
      by Seller		9	
	 					
	9.		Deposits
      by Buyer		10	
	 					
	10.		Costs and
      Expenses		10	
	 					
	11.		Prorations		11	
	 					
	12.		Disbursements
      and Other Actions by Escrow Holder		12	
	 					
	13.		Covenants
      of Seller		12	
	 					
	14.		Seller's
      Representations and Warranties		14	
	 					
	15.		Buyer's
      Representations and Warranties		17	
	 					
	16.		Remedies		18	
	 					
	17.		Damage
      or Condemnation Prior to Closing		20	
	 					
	18.		Notices		21	
	 					
	19.		Brokers		23	
	 					
	20.		Legal Fees		23	
	 					
	21.		Assignment		23	
	 					
	22.		Miscellaneous		24	

	

i
 

	

EXHIBITS 

Exhibit “A”  —  Depiction of the Land

Exhibit “B”  —  [Reserved] 

Exhibit “C”  —  Grant Deed 

Exhibit “D”  —  [Reserved] 

Exhibit “E”  —  593-W Form

Exhibit “F”  —  Tenant Lease Assignment 

Exhibit “G”  —  Assignment of Contracts and Assumption Agreement 

Exhibit “H”  —  Bill of Sale

Exhibit “I”  —  Transferor’s Certification of Non-Foreign Status 

Exhibit “J”  —  General Assignment Agreement 

Exhibit “K”  —  [Reserved]

Exhibit “L”  —  Schedule of Warranties for the Improvements to be Assigned to
Buyer 

	

      AGREEMENT
OF PURCHASE AND SALE

AND JOINT ESCROW INSTRUCTIONS 

      THIS
        AGREEMENT OF PURCHASE AND SALE AND JOINT ESCROW INSTRUCTIONS (“Agreement”)
        is made and entered into as of March 31, 2004 (the “Effective
        Date”), by and between PEGH Investments,
        LLC, a California limited liability company (“Seller”),
        and The Cheesecake Factory Incorporated, a Delaware corporation (“Buyer”),
        with respect to the following:

      R
        E C I T A L S :

      
        A.        Seller
        desires to sell and convey to Buyer all of Seller’s right, title
        and interest in and to the following:

      1.    That
        certain real property located at 26901 Malibu Hills Road, in the
        City of Calabasas, County of Los Angeles, State of California, consisting
        of approximately 220,048 square feet of land, all of which is described
        on Exhibit “A” attached hereto (the “Land”),
        together with a two story office building located thereon, containing
        in the aggregate approximately 87,884 net rentable square feet of space,
        associated parking areas, and all other improvements located thereon (the
        “Improvements”);

      2.    All
        rights, privileges, easements and appurtenances benefiting the Land or
        the Improvements, including, without limitation, all mineral and water
        rights and all easements, rights-of-way and other appurtenances used or
        connected with the beneficial use or enjoyment of the Land or the Improvements
        (the Land, the Improvements and all such rights, privileges, easements
        and appurtenances are sometimes collectively hereinafter referred to as
        the “Real Property”);

      3.      All
of Seller’s interest in and to that certain Office Lease, dated October
3, 2001, as amended April 1, 2002 and March 24, 2003 (the “Cheesecake
Lease”), by and between Seller, as lessor, and Buyer, as lessee. 

      4.    All
        personal property, equipment, supplies and fixtures (collectively, the
        “Personal Property”),
        owned by Seller and used or useful in the operation of the Real Property;
        and

      5.    All
        of Seller’s interest in any intangible property used or useful in
        connection with the foregoing, including, without limitation, all trademarks,
        trade names, goodwill, contract rights, plans and specifications, warranties,
        guaranties, licenses, permits, entitlements, governmental approvals and
        certificates of occupancy that benefit the Real Property or the Personal
        Property (the “Intangible Personal Property”).
        The Real Property, the Personal Property, Seller’s interest as lessor
        in the Leases, and the Intangible Personal Property are sometimes collectively
        hereinafter referred to as the “Property.”

      

      
      

    

	 

      
      
        B.        Seller
        desires to sell the Property to Buyer and Buyer desires to purchase the
        Property from Seller upon the terms and conditions hereinafter set forth.
        

      
      
        NOW,  THEREFORE, in consideration
        of the mutual covenants and agreements herein contained and for other
        good and valuable consideration, the receipt and sufficiency of which
        are hereby acknowledged, Seller and Buyer agree that the terms and conditions
        of this Agreement and the instructions to Commerce Escrow Company, 1545 Wilshire
        Boulevard, Suite 600, Los Angeles, California  90017, 213-484-0855,
        Attn:  Mr. Mark Minsky (“Escrow Holder”),
        with regard to the escrow (“Escrow”) created pursuant
        hereto are as follows: 

      1.         Purchase
and Sale. Seller hereby agrees to sell the Property to Buyer, and Buyer
hereby agrees to purchase the Property from Seller, upon the terms and
conditions herein set forth. 

      2.           Purchase
Price. The purchase price (“Purchase Price”) for the Property
is Twenty Million Nine Hundred Eighty-Three Thousand One Hundred Thirty-Nine
and 29/100
Dollars ($20,983,139.29).  

      3.         Payment
of Purchase Price. The Purchase Price for the
Property will be payable by Buyer as follows: 

      
(a)Deposit.
        Within five (5) business days following the Effective Date, Buyer will
        deposit or cause to be deposited with Escrow Holder, by check made payable
        to Escrow Holder or by a confirmed wire transfer of funds, the sum of
        Three Hundred Thousand and No/100 Dollars ($300,000.00) (the “Deposit”).
        The Deposit and all interest thereon will be fully refundable to Buyer
        if Buyer does not satisfy or waive the contingencies of Paragraph 7(a)(i),
        (ii), (iii) and (iv) hereof on or before the expiration of the “Contingency
        Period” (as defined in Paragraph 7(a)(ii)
        hereof). Upon Buyer’s satisfaction or waiver of such contingencies
        and the expiration of the Contingency Period, the Deposit will become
        nonrefundable to Buyer in the event this Agreement and the Escrow is thereafter
        cancelled by reason of a default by Buyer hereunder, as provided in and
        subject to the provisions of Paragraph 16(a) hereof. Upon Escrow Holder’s
        receipt of the Deposit, as applicable, Escrow Holder shall immediately
        invest it in an interest bearing account of a federally insured bank or
        savings and loan association acceptable to Buyer (Buyer’s Federal
        Tax Identification Number is: 51-0340466). The Deposit and all interest
        that accrues thereon will be applied to the payment of the Purchase Price
        upon the Close of Escrow, or refunded to Buyer in the event this Agreement
        and the Escrow is cancelled for any reason except as provided in Paragraph
        16(a) hereof.

      
      
        (b)     Closing
        Funds. Prior to the Close of Escrow, Buyer shall deposit or
        cause to be deposited with Escrow Holder, in cash, by a certified or bank
        cashier’s check made payable to Escrow Holder or by a confirmed wire
        transfer of funds, the balance of the Purchase Price, and plus or minus
        Buyer’s share of closing costs, prorations and charges payable pursuant
        to this Agreement.

      
      -2-
         

      
      

    

	 

      
        4.      
        Escrow

      
      
        (a)    Opening
        of Escrow. For purposes of this Agreement, the Escrow shall be deemed
        opened on the date Escrow Holder receives a fully executed original or
        originally executed counterparts of this Agreement from both Buyer and
        Seller (such date being referred to hereinafter as the “Opening
        of Escrow”). Escrow Holder shall notify Buyer and Seller in writing
        of the date Escrow is opened. Buyer and Seller agree to execute, deliver
        and be bound by any reasonable or customary supplemental escrow instructions
        of Escrow Holder or other instruments as may reasonably be required by
        Escrow Holder in order to consummate the transaction contemplated by this
        Agreement. Any such supplemental instructions shall not conflict with,
        amend or supersede any portions of this Agreement. If there is any conflict
        or inconsistency between such supplemental instructions and this Agreement,
        this Agreement shall control.

      
      
        (b)    Close
        of Escrow. For purposes of this Agreement, the “Close of Escrow”
        is the date that the grant deed, the form of which is attached hereto
        as Exhibit “C” (the “Deed”), conveying
        the Real Property to Buyer, is recorded in the Official Records of Los
        Angeles County, California (the “Official Records”).
        Unless extended in writing by Buyer and Seller, the Close of Escrow (the
        “Closing Date”) will occur on or before the fifteenth
        (15th) day following the earlier to occur of (i) the day on
        which Buyer delivers to Seller written notice of Buyer’s approval
        of all contingencies that are subject to Buyer’s review during the
        Contingency Period, or (ii) the expiration of the Contingency Period.
        Seller shall deliver possession of the Property to Buyer upon the Close
        of Escrow, subject only to the “Approved Condition of Title”
        (as defined in Paragraph 5 below).

      5.       Condition
        of Title. It is a condition to the Close of Escrow
        for Buyer’s benefit that Seller convey title to the Real Property
        to Buyer by the Deed subject only to the following approved conditions
        of title (the “Approved Condition of Title”):

      
      
        (a)    a lien
        to secure payment of real estate taxes, not delinquent;

      
      
        (b)    the
        lien of supplemental taxes assessed pursuant to Chapter 3.5 commencing
        with Section 75 of the California Revenue and Taxation Code (the “Code”),
        but only to the extent that such supplemental taxes are attributable to
        the transaction contemplated by this Agreement. Seller will be responsible
        for, and will indemnify, protect, defend (with counsel chosen by Seller,
        subject to Buyer’s prior written approval, which will not be unreasonably
        withheld) and hold harmless Buyer and the Real Property from and against
        any and all supplemental taxes assessed pursuant to the Code, to the extent
        that such taxes are attributable to any period occurring prior to the
        Close of Escrow;

      
      -3-
         

      
      

    

	 

      
      
        (c)    matters
        affecting the Real Property created by or with the written consent of
        Buyer;

      
      
        (d)    exceptions
        that are disclosed by the Report (as defined below) and that are approved
        or deemed approved by Buyer in accordance with Paragraph 7(a)(i);
        and

      
      
        (e)    the
        Cheesecake Lease.

      
       Seller covenants and agrees that
        during the term of the Escrow, it will not cause or permit title to the
        Real Property to differ from the Approved Condition of Title described
        in this Paragraph 5. Any liens, encumbrances, encroachments, easements,
        restrictions, conditions, covenants, rights, rights-of-way or other matters
        affecting the Approved Condition of Title that may appear of record or
        be revealed after the date of the Report described in Paragraph 7(a)(i)
        below will also be subject to Buyer’s approval and must be eliminated
        or ameliorated by Seller to Buyer’s reasonable satisfaction prior
        to the Close of Escrow as a condition to the Close of Escrow for Buyer’s
        benefit.

      
      
        6.     Title
        Policy. Title will be evidenced by the willingness of the “Title
        Company” (as defined in Paragraph 7(a)(i) hereof) to issue its ALTA
        Extended Coverage (Form B-1970) Owner’s Policy of Title Insurance
        (the “Title Policy”), or a title binder reflecting the
        same if so elected by Buyer, in the amount of the Purchase Price, showing
        title to the Property vested in Buyer or its assignee as provided in Paragraph 21
        hereof and subject only to the Approved Condition of Title. The Title
        Policy must also include any endorsements reasonably requested by Buyer.
        

      
      
        7.       Conditions
        to Close of Escrow 

      
      
        (a)    Conditions
        to Buyer’s Obligations. The Close of Escrow and Buyer’s
        obligation to consummate the transaction contemplated by this Agreement
        are subject to the satisfaction of the following conditions (or Buyer’s
        written waiver thereof, it being agreed that Buyer may waive in writing
        any or all of such conditions) for Buyer’s benefit on or prior to
        the dates designated below for the satisfaction of such conditions. In
        the event Buyer terminates this Agreement and the Escrow due to the nonsatisfaction
        of any such conditions, in Buyer’s sole and absolute discretion,
        then Buyer will be entitled to the immediate return of the Deposit and
        all interest accrued thereon:

      (i)    Title.
        Buyer shall have approved the legal description of the Land and any matters
        of title as disclosed by the following documents (collectively, the “Title
        Documents”) prepared at Seller’s sole
        cost and expense and to be delivered to Buyer at Seller’s sole cost
        and expense: (A) a standard preliminary title report dated on or
        after the date of this Agreement issued by Chicago Title Company (the
        “Title Company”)
        with respect to the Real Property, as such report may be amended or supplemented
        from time to time to reflect additional title matters or survey exceptions
        (the “Report”);
        (B) legible copies of all documents, whether recorded or unrecorded,
        referred to in the Report (the “Underlying
        Documents”); and (C)  an as built ALTA
        survey of the Real Property (the “Survey”),
        prepared by Peak Surveys, Inc., a registered surveyor (the “Surveyor”).
        Seller agrees to request that the Title Company deliver to Buyer the Report
        and the Underlying Documents, and the Surveyor deliver to Buyer the Survey,
        on or before the fifth (5th)
        day following the Effective Date.

      
      -4-
         

      
      

    

	 

      Buyer
        will have until the twentieth (20th)
        day following the “Title Delivery Date” (as defined below) to
        give Seller and Escrow Holder written notice (“Buyer’s
        Title Notice”) of Buyer’s disapproval
        or conditional approval of the legal description or any matters shown
        in or disclosed by the Title Documents. The “Title
        Delivery Date” means the date on which Buyer
        holds in its possession the Report, the Underlying Documents, and the
        Survey.

      The
        failure of Buyer to give Buyer’s Title Notice on or before the expiration
        of the Contingency Period will be deemed to constitute Buyer’s disapproval
        of the respective matters relating thereto. If Buyer disapproves or conditionally
        approves any of the foregoing matters, Seller may,
        within ten (10) days after its receipt of Buyer’s Title Notice, elect
        to eliminate or ameliorate to Buyer’s reasonable satisfaction such
        disapproved or conditionally approved matters. Within this (10) day period,
        Seller shall give Buyer written notice (which will hereinafter be referred
        to as “Seller’s Title Notice”) of those disapproved
        or conditionally approved matters, if any, that Seller covenants and agrees
        to either eliminate from the Title Policy as exceptions to title to the
        Property or to ameliorate to Buyer’s reasonable satisfaction by the
        Closing Date. If Seller does not elect in Seller’s Title Notice to
        eliminate or ameliorate any disapproved or conditionally approved matters
        as provided above, or Buyer disapproves, in Buyer’s reasonable discretion,
        then Buyer will have the right, by a written notice delivered to Seller
        and Escrow Holder prior to the Closing Date, to: (A) waive its prior
        disapproval, in which event said disapproved matter(s) shall be deemed
        approved, (B) terminate this Agreement and the Escrow created pursuant
        hereto, in which event the Deposit and all interest accrued thereon will
        be immediately returned to Buyer, and this Agreement, the Escrow and the
        rights and obligations of the parties hereunder will terminate, or (C) cure
        the objections at Seller’s expense, so long as such expense does
        not exceed Twenty-Five Thousand Dollars ($25,000). Notwithstanding anything
        to the contrary contained in this Agreement, Buyer hereby disapproves
        all liens evidencing monetary encumbrances (other than liens for non-delinquent
        real property taxes) and Seller agrees to cause all such liens to be eliminated
        at Seller’s sole cost and expense (including all prepayment penalties
        and charges) prior to, or concurrently with, the Close of Escrow.

      
      -5-
         

      
      

    

	 

      (ii)    Review
        and Approval of Documents and Materials. Seller shall deliver to Buyer
        or cause the delivery to Buyer by Triliad Development, Inc., a California
        corporation (“Triliad”), concurrently with the Opening
        of Escrow the documents and materials respecting the Property set forth
        below (the “Documents and Materials”). From the Opening
        of Escrow until 5 p.m. Pacific Time on the forty-fifth (45th) day
        following the Effective Date. (the “Contingency Period”),
        Buyer will have the right to review and approve or disapprove, in its
        sole and absolute discretion, any or all of the Documents and Materials.
        The failure of Buyer to approve of the Documents and Materials on or before
        the expiration of the Contingency Period will be deemed to constitute
        Buyer’s disapproval thereof, in which event this Agreement will terminate
        and the Initial Deposit will be returned to Buyer.

      (A)    Permits.
        Any and all governmental approvals (such as approved building permits,
        building inspection approvals and certificates of occupancy) or authorizations
        pertaining to the Property to the extent in the possession or control
        of Seller.

      (B)    Improvement
        Plans. Complete “as-built” plans, drawings and specifications
        for the Improvements (the “Plans and Specifications”).

      (C)    Agreements.
        Legible copies of any and all certificates of insurance, management contracts,
        maintenance contracts (but excluding the management agreement between
        Triliad and Seller), service contracts, reciprocal easement agreements,
        utility will-serve letters and any other contracts or agreements affecting
        or relating to the Cheesecake Lease, ownership, operation, maintenance,
        construction or development of the Property, including, without limitation,
        copies of all warranties with respect thereto (collectively, the “Contracts”).
        Notwithstanding anything to the contrary contained in the foregoing sentence,
        Seller will not deliver copies of any insurance policy, broker listing
        agreement, construction contract, or correspondence relating to the prospective
        leasing of the Real Property.
      
(D)    Personal
        Property List. A detailed list (“Personal
        Property Schedule”) of all personal property,
        including, without limitation, any and all fixtures, equipment and tools
        owned by Seller and used on or in connection with the Property, that are
        to be conveyed to Buyer at Close of Escrow pursuant
        to the Bill of Sale described in Paragraph 8(f) below, together with
        a copy of all warranties and guaranties applicable thereto. This list
        will reflect any and all security interests in said personal property,
        and Seller will cause, at Seller’s sole cost and expense, said personal
        property to be released from any such security interests at or before
        the Close of Escrow.

      
      -6-
         

      
      

    

	 

      (E)    Tax
        Statements. Legible copies of the most recently
        issued bills for all real property taxes and assessments and all personal
        property taxes payable with respect to the Property, or any portion thereof.

      
        (F)    [Intentionally
        Deleted]

      (G)    Schedule
        of Income and Expenses. A schedule reflecting
        all income generated by or from the Property or from the use of all or
        any portion of the Property and reflecting any and all expenses for the
        ownership, operation, maintenance and repair of the Property for the calendar
        years of 2001, 2002, 2003 and for the calendar year 2004 up to and including
        the month of February, 2004, which schedule must include, without limitation,
        the following:

      
        (1)      annual
        insurance premiums for all forms of coverage;

      
        (2)     real
        property taxes and assessments;
      
(3)    utility
        charges, management fees, maintenance and repair costs; and

      (4)    any
        and all other costs and expenses incurred in connection with the ownership,
        operation, maintenance and repair of the Property.

      (H)    Environmental
        and Engineering Reports. All existing and available
        soils, environmental and building reports and engineering data pertaining
        to the Property or any portion thereof and any and all architectural studies,
        grading plans, topographical maps and similar data respecting the Property
        that are in the possession or control of Seller or Triliad.

      (I)    Miscellaneous.
        Such other documents in Seller’s or Triliad’s possession or
        control that relate to the Property that Buyer shall reasonably request.

      (iii)    Inspections
        and Studies. On or before the expiration of the
        Contingency Period, Buyer will have the right to approve or disapprove,
        in Buyer’s sole and absolute discretion, the results of any and all
        inspections, investigations, tests and studies, including, without limitation,
        investigations with regard to zoning, building codes and other governmental
        regulations, architectural inspections, engineering tests, economic feasibility
        studies and soils, seismic and geologic reports, as well as toxic and
        environmental reports with respect to the Property, inspections of all
        or any portion of the Improvements (including, without limitation, structural,
        mechanical and electrical systems, roofs, pavement, landscaping and public
        utilities), and any other physical inspections or investigations as Buyer
        may elect to make or obtain. The failure of Buyer to approve said results
        on or prior to the expiration of the Contingency Period will be deemed
        to constitute Buyer’s disapproval thereof, in which event this Agreement
        will terminate and the Initial Deposit will be returned to Buyer. Buyer
        agrees to restore or cause to be restored any damage to the Property that
        is a direct result of, or caused during the course of, Buyer’s inspection
        and testing on and of the Property.

      
      -7-
         

      
      

    

	 

      During
        the term of this Escrow, Buyer will be afforded access by Seller to review
        Seller’s and Triliad’s books and records relating to the Property,
        and Buyer, its agents, consultants, contractors and subcontractors will
        have the right to enter upon the Property to conduct or make any and all
        inspections and tests (including, without limitation, environmental assessments
        of the Real Property) as may be necessary or desirable in Buyer’s
        sole and absolute
        judgment and discretion. Buyer hereby indemnifies, protects, defends (with
        counsel chosen by Buyer, subject to Seller’s prior written approval,
        which will not be unreasonably withheld) and holds Seller and the Property
        harmless from and against any and all costs, losses, damages or expenses
        arising out of or resulting from such entry by Buyer, its agents, consultants,
        contractors and subcontractors provided, that, Buyer will not be liable
        for any losses or liabilities resulting from Buyer’s investigations
        uncovering the existence of any environmental contamination or any other
        defects or conditions that adversely impact the Property or any injury
        or liability caused by the willful misconduct or negligence of Seller,
        its agents or contractors.

      (iv)    Representations,
        Warranties and Covenants of Seller. Seller shall
        have duly performed each and every covenant and agreement to be performed
        by Seller pursuant to this Agreement and Seller’s representations,
        warranties and covenants set forth in Paragraph 14 hereof must be
        true and correct as of the Closing Date.

      (v)    No
        Material Changes. At the Closing Date, there will have been no material
        adverse changes in the physical, environmental or financial condition
        of the Property (including, without limitation, the financial condition
        of any Lessees) from and after the Opening of Escrow.

      (vi)    Deposits.
        Seller must make all deposits with Escrow Holder required of Seller pursuant
        to the provisions of Paragraph 8 of this Agreement.

      
      -8-
         

      
      

    

	 

      (b)    Conditions
        to Seller’s Obligations. For the benefit
        of Seller, the Close of Escrow will be conditioned upon the timely performance
        by Buyer of all of the obligations required by the terms of this Agreement
        to be performed by Buyer (or Seller’s waiver thereof, it being agreed
        that Seller may waive such condition). Buyer’s representations, warranties
        and covenants set forth in Paragraph 15 hereof must be true and correct
        as of the Closing Date

      8.    Deposits
        by Seller. At least one (1) business day prior
        to the Close of Escrow, Seller will deposit or cause to be deposited with
        Escrow Holder the following documents and instruments:

      
      
(a)      Deed.
The Deed conveying the Real Property to Buyer or its assignee, as provided
in Paragraph 21 hereof, duly executed as appropriate by Seller, acknowledged
and in recordable form in the form attached hereto as Exhibit “C” 

      
      
        (b)    [Intentionally
        Deleted];

      
      
        (c)    Tenant
        Lease Assignment. Tenant Lease Assignment (“Assignment of
        Leases”), duly executed by Seller, in the form attached hereto
        as Exhibit “F”, pursuant to which Seller will assign
        to Buyer all of Seller’s right, title and interest in and to the
        Cheesecake Lease;

      
      
        (d)    Contracts.
        Any and all original Contracts and all warranties related thereto, if
        any, approved by Buyer in accordance with Paragraph 7(a) hereof;

      
      
        (e)    Assignment
        of Contracts and Assumption Agreement. Assignment of Contracts and
        Assumption Agreement (“Assignment of Contracts”), duly
        executed by Seller, in the form attached hereto as Exhibit “G”,
        pursuant to which Seller will assign to Buyer all of Seller’s right,
        title and interest in, under and to the Contracts that Buyer approved
        and elected to assume during the Contingency Period and any and all warranties
        relative thereto;

      
      
        (f)    Bill
        of Sale. Bill of Sale (“Bill of Sale”), duly executed
        by Seller, in the form attached hereto as Exhibit “H”,
        conveying all of Seller’s right, title and interest in and to
        the Personal Property;

      
      
(g)        Seller’s
Certification of Non-Foreign Status. Seller’s Certification of
Non-Foreign Status, for both federal (in the form attached hereto as Exhibit “I”
(the “FIRPTA”)) and state (in the form attached hereto as Exhibit “E”
(the “593-W”)) duly executed by Seller;  

      
      
        (h)    Permits,
        Entitlements and the Like. Any and all building and development permits,
        certificates of occupancy, utility will serve letters, use permits and
        other governmental approvals or entitlements relative to the Property;

      
      -9-
         

      
      

    

	 

      
      
(i)        General
Assignment. General Assignment (“General Assignment”), duly
executed by Seller, in the form attached herein as Exhibit “J”,
conveying all of Seller’s right, title and interest in and to the
Intangible Personal Property. The Intangible Personal Property shall include,
without limitation, the Plans and Specifications and those certain warranties
for the Improvements that are described in Exhibit “L”
attached hereto, and in the event the architect’s or applicable contractor’s
or subcontractor’s consent is required in order to assign to Buyer
the Plans and Specifications or the above described warranties for the
Improvements, Seller will deliver such consents (collectively, the “Contractor/Architect
Consents”) in a form acceptable to Buyer;  

      
      
        (j)    Property
        Documents. Originals of any and all warranties or guaranties, including,
        without limitation, those included in the General Assignment, and any
        utility deposits or rate agreements related to the Property; and

      
      
        (k)    Other
        Instruments. Such other instruments and documents as are described
        in Paragraph 22(b) herein.

      9.    Deposits
        by Buyer. Buyer shall deposit or cause to be deposited
        with Escrow Holder the funds that are to be applied towards the payment
        of the Purchase Price in the amounts and at the times designated in Paragraph
        3 above (as reduced by the prorations and credits hereinafter provided).
        In addition, Buyer shall deposit with Escrow Holder prior to the Close
        of Escrow the following documents and instruments:

      
      
        (a)    Assignment
        of Leases. Counterpart of the Assignment of Leases, duly executed
        by Buyer;

      
      
        (b)    Assignment
        of Contracts. Counterpart of the Assignment of
        Contracts, duly executed by Buyer;

      
      
        (c)    General
        Assignment. Counterpart of the General Assignment,
        duly executed by Buyer; and

      
      
        (d)    Other
        Instruments. Such other instruments and documents
        as are described in Paragraph 22(b) herein.

      10.    Costs
        and Expenses. The cost and expense of the standard
        CLTA portion of the Title Policy, including a mechanic’s lien endorsement,
        will be paid by Seller. Buyer will pay the costs and expenses of any extended/ALTA
        coverage and any additional endorsements requested by Buyer. The escrow
        fee of Escrow Holder will be allocated equally between Buyer and Seller.
        Seller will pay all documentary transfer taxes and fees payable in connection
        with the recordation of the Deed. Buyer and Seller shall pay, respectively,
        the Escrow Holder’s customary charges to buyers and sellers for document
        drafting and miscellaneous charges. If, as a result of no fault of Buyer
        or Seller, Escrow fails to close, Buyer and Seller will share equally
        all of Escrow Holder’s fees and charges.

      
      -10-
         

      
      

    

	 

      11.    Prorations.
        The following prorations between Seller and Buyer will be made by Escrow
        Holder computed as of the Close of Escrow:

      
      
        (a)     Taxes.
        Real and personal property taxes and assessments on the Property will
        be prorated on the basis that Seller is responsible for (i) all such
        taxes for the fiscal year of the applicable taxing authorities occurring
        prior to the “Current Tax Period” (as hereinafter defined) and
        (ii) that portion of such taxes for the Current Tax Period determined
        on the basis of the number of days that have elapsed from the first day
        of the Current Tax Period to the Close of Escrow, inclusive, whether or
        not the same will be payable prior to the Close of Escrow. The phrase
        “Current Tax Period” refers to the fiscal year of the
        applicable taxing authority in which the Close of Escrow occurs. In the
        event that as of the Close of Escrow the actual tax bills for the year
        or years in question are not available and the amount of taxes to be prorated
        as aforesaid cannot be ascertained, then all amounts equal to one hundred
        two percent (102%) of the rates and assessed valuation of the previous
        year, with known changes, will be used, and when the actual amount of
        taxes and assessments for the year or years in question will be determinable,
        then such taxes and assessments will be reprorated between the parties
        to reflect the actual amount of such taxes and assessments.

      
      
        (b)    Rentals.
        Rentals and other payments (including, without limitation, common area
        maintenance charges and payments for real property taxes and insurance
        premiums) payable by tenants, licensees, concessionaires and other persons
        using or occupying the Property or any part thereof, if any, for or in
        connection with such use or occupancy will be prorated as of the Close
        of Escrow. However, Buyer will not be obligated to make any payment or
        give any credit to Seller on account of, or by reason of, any rental or
        other payments that are unpaid as of the Close of Escrow (excluding payments
        under the Cheesecake Lease); which will be brought current by the “Cheesecake
        Tenant” (as defined below) on or before the Close of Escrow, but
        will be required merely to pay to Seller Seller’s share of the same
        if, as and when received by Buyer. After the Close of Escrow, all payments
        received by Buyer from a tenant, licensee, concessionaire or other person
        will be applied first, to all of Buyer’s costs of collection incurred
        with respect to the recovery of any such payments, second, to the most
        recently accrued obligation or obligations of the payor, third, to any
        obligation or obligations attributable to any period occurring after the
        Close of Escrow that are past due on the date of receipt by Buyer, and
        then, to any amounts due Seller from such payor. Any rental payments received
        by Seller following the Close of Escrow will be paid over to Buyer and
        will be applied in the manner described above. After the Close of Escrow,
        Seller will have no right whatsoever to initiate any legal action against
        the tenant under the Cheesecake Lease (the “Cheesecake Tenant”).

      
      
        (c)     [Intentionally
        Deleted]

      
      -11-
         

      
      

    

	 

      
      
        (d)    Utilities.
        Gas, water, electricity, heat, fuel, sewer and other utilities and the
        operating expenses relating to the Property will be prorated as of the
        Close of Escrow to the extent such items are not directly paid for by
        the Cheesecake Tenant. If the parties are unable to obtain final meter
        readings as of the Close of Escrow, such expenses will be estimated as
        of the Close of Escrow on the basis of the prior operating history of
        the Property.

      At
        least one (1) business day prior to the Close of Escrow, the parties must
        agree upon all of the prorations to be made and submit a statement to
        Escrow Holder setting forth the same. In the event that any prorations,
        apportionments or computations made under this Paragraph 11 shall require
        final adjustment, then the parties will make the appropriate adjustments
        promptly when accurate information becomes available and either party
        hereto will be entitled to an adjustment to correct the same. Any corrected
        adjustment or proration will be paid in cash to the party entitled thereto.

      12.    Disbursements
        and Other Actions by Escrow Holder. Upon the Close
        of Escrow, Escrow Holder will promptly undertake all of the following
        in the following manner:

      
      
        (a)    Prorations.
        Prorate all matters referenced in Paragraph 11 based upon the closing
        statements delivered into Escrow signed by the parties;

      
      
        (b)    Recording.
        Cause the Deed and any other documents that the parties hereto may mutually
        direct, to be recorded in the Official Records of the County of Los Angeles
        in the order directed by the parties;

      
      
        (c)    Funds.
        Disburse from funds deposited by Buyer with Escrow Holder (i) the Purchase
        Price to Seller and (ii) payment of all items chargeable to the account
        of Buyer pursuant hereto in payment of such costs, and disburse the balance
        of such funds, if any, to Buyer;

      
      
        (d)    Documents
        to Seller. Deliver to Seller counterparts of the
        Assignment of Leases, the Assignment of Contracts and the General Assignment
        executed by Buyer;

      
      
        (e)    Documents
        to Buyer. Deliver to Buyer the Contracts, the Bill of Sale, the Seller’s
        Certificate, counterparts of the Assignment of Leases, the Assignment
        of Contracts and the General Assignment appropriately executed by Seller,
        the Contractor/Architect Consents and any other documents that are to
        be delivered to Buyer hereunder; and

      
      
        (f)    Title
        Policy. Direct the Title Company to issue the Title Policy to Buyer,
        and, when issued, deliver the Title Policy to Buyer.

      	
            13.

          	
            Covenants
              of Seller. Seller hereby covenants with
              Buyer, as follows:

          

	
      
      
        (a)    From
        and after the date of this Agreement, Seller will not, without the prior
        written consent of Buyer, which consent Buyer may withhold in its sole
        and absolute discretion, enter into any maintenance contract, service
        contract or any other contract affecting or relating to the Property that
        will survive the Close of Escrow or will otherwise affect the use, operation
        or enjoyment of the Property after the Close of Escrow, unless such contract
        is terminable on thirty days’ notice. Notwithstanding anything to
        the contrary contained in this Paragraph 13(a), Seller will not, without
        the prior written consent of Buyer, which consent Buyer may withhold in
        its sole and absolute discretion, enter into any listing, leasing or brokerage
        contracts regarding the Property;

      
      -12-
         

      
      

    

	 

      
      
        (b)    All
        insurance policies carried by Seller with respect to the Property and
        in effect as of the date of this Agreement will remain continuously in
        full force and effect from the date of this Agreement through the day
        upon which the Close of Escrow occurs;

      
      
        (c)    From
        and after the date of this Agreement, Seller will not amend, modify, alter
        or supplement any Contract that is approved by Buyer pursuant to Paragraph
        7(a) hereof. Further, Seller hereby covenants and agrees that provided
        the same is terminable on thirty days’ notice, Seller will terminate
        on or before the Close of Escrow any Contract that Buyer disapproves in
        accordance with Paragraph 7(a) hereof. If Seller is unable to terminate
        prior to the Close of Escrow any Contract that Buyer has disapproved due
        to the terms of such Contract, then Seller will (i) immediately deliver
        written notice to Buyer stating which Contract Seller is unable to terminate
        and the reason(s) for Seller’s inability to terminate that Contract,
        and (ii) deliver a termination notice to the appropriate contractor on
        or before the third (3rd) business day immediately following
        Buyer’s notice to Seller of Buyer’s disapproval of that Contract.

      
      
        (d)    From
        the date of this Agreement until the Close of Escrow, Seller hereby covenants
        and agrees that it will (i) operate and manage the Property in the
        same manner that it has operated the Property since the commencement of
        the Cheesecake Lease, (ii) maintain all present services and amenities,
        (iii) maintain the Property in good condition, repair and working
        order, (iv) keep on hand sufficient materials, supplies, equipment
        and other personal property for the efficient operation and management
        of the Property in a first-class manner, (v) perform when due, and
        otherwise comply with, all of Seller’s obligations and duties under
        the Cheesecake Lease and Contracts approved by Buyer in accordance with
        Paragraph 7(a) hereof, and (vi) maintain the Property in accordance
        with all applicable laws, ordinances, rules and regulations affecting
        the Property. None of the Personal Property will be removed from the Real
        Property, unless replaced by unencumbered personal property of equal or
        greater utility and value. All Personal Property and Intangible Personal
        Property will be conveyed to Buyer by Seller at the Close of Escrow free
        from any liens, encumbrances or security interests of any kind or nature;

      
      (e)    After
        the date of this Agreement, Seller will not alienate, lien, encumber or
        otherwise transfer all or any portion of the Property (other than to Buyer
        at the Close of Escrow);

      
      (f)    [Intentionally
        Deleted] 

      
      -13-
         

      
      

    

	 

      
      (g)    [Intentionally
        Deleted]; and

      
      
        (h)    Seller
        must promptly notify Buyer of any change in any condition with respect
        to the Property or of any event or circumstance that makes any representation
        or warranty of Seller to Buyer under this Agreement materially untrue
        or misleading, and of any covenant of Seller under this Agreement that
        Seller will be incapable of performing or less likely to perform.

      14.    Seller’s
        Representations and Warranties.
        As used herein, the term “Seller’s Knowledge”
        will mean the actual knowledge of Valerie Draeger and Mark Belliveau,
        without the duty of further inquiry by Seller. In consideration of Buyer
        entering into this Agreement and as an inducement to Buyer to purchase
        the Property, Seller makes the following covenants, representations and
        warranties, each of which is material and is being relied upon by Buyer
        (and the continued truth and accuracy of which will constitute a condition
        precedent to Buyer’s obligations hereunder):

      
      (a)    Representations
        Regarding Seller’s Authority.

        (i)     Seller
        has the legal power, right and authority to enter into this Agreement
        and the instruments referenced herein, and to consummate the transaction
        contemplated hereby;

      (ii)    All
        requisite action (corporate, trust, partnership or otherwise) has been
        taken by Seller in connection with the entering into this Agreement, the
        instruments referenced herein, and the consummation of the transaction
        contemplated hereby. No consent of any partner, shareholder, trustee,
        trustor, beneficiary, creditor, investor, judicial or administrative body,
        governmental authority or other party is required;

      (iii)   The
        individuals executing this Agreement and the instruments referenced herein
        on behalf of Seller and the partners of Seller, if any, have the legal
        power, right, and actual authority to bind Seller to the terms and conditions
        hereof and thereof;

      (iv)   This
        Agreement and all documents required hereby to be executed by Seller are
        and will be valid, legally binding obligations of and enforceable against
        Seller in accordance with their terms; and

      (v)    Neither
        the execution and delivery of this Agreement and the documents and instruments
        referenced herein, nor the incurrence of the obligations set forth herein,
        nor the consummation of the transaction contemplated herein, nor compliance
        with the terms of this Agreement and the documents and instruments referenced
        herein conflict with or result in the material breach of any terms, conditions
        or provisions of, or constitute a default under, any bond, note, or other
        evidence of indebtedness or any contract, indenture, mortgage, deed of
        trust, loan, partnership agreement, lease or other agreement or instrument
        to which Seller is a party or affecting the Property;

      
      -14-
         

      
      

    

	 

      
      (b)    Threatened
        Actions. There are no pending actions, suits, arbitrations, claims
        or proceedings, at law, in equity or otherwise, affecting, or that may
        affect, all or any portion of the Property or in which Seller is or will
        be a party by reason of Seller’s ownership of the Property, including,
        without limitation, judicial, municipal or administrative proceedings
        in eminent domain, collection actions, alleged building code violations,
        health and safety violations, federal, state or local agency actions regarding
        environmental matters, federal environmental protection agency or zoning
        violations, personal injuries or property damages alleged to have occurred
        at the Property or by reason of the condition or use of or construction
        on the Property. To Seller’s Knowledge, Seller is not aware of the
        existence of any threatened or contemplated actions, suits, arbitrations,
        claims or proceedings or of the existence of any facts that might give
        rise to any such actions, suits, arbitrations, claims or proceedings;

      
      (c)    Compliance
        with Law. To Seller’s Knowledge, the Property is in compliance
        with all applicable laws, ordinances, rules, requirements, regulations,
        building codes and environmental rules of any governmental agency, body
        or subdivision thereof;

      
      (d)    Leases
        and Agreements. Except for the Cheesecake Lease
        and any agreements entered into by Cheesecake Tenant with respect to the
        portion of the property leased from Seller under the Cheesecake Lease,
        there are no leases, license agreements, or any other agreements (whether
        oral or written), affecting or relating to the right of any party with
        respect to the possession of the Property, or any portion thereof, that
        are obligations that will affect the Property or any portion thereof subsequent
        to the recordation of the Deed except as set forth in the Contracts provided
        to and approved by Buyer in accordance with Paragraph 7(a)(ii) hereof,
        or as may be reflected in the Approved Condition of Title;

      
      (e)    Documents
        True. To Seller’s Knowledge, all documents
        delivered by Seller to Buyer pursuant to this Agreement are true, accurate,
        correct and complete copies of originals and any and all information prepared
        by Seller or at Seller’s direction and supplied to Buyer by Seller
        in accordance with Paragraph 7(a) hereof is true, accurate, correct and
        complete;

      
      (f)    
        Contracts. There are no maintenance contracts, service contracts
        or any other contracts (whether oral or written) affecting or relating
        to the Property which will survive the Close of Escrow except as approved
        by Buyer in accordance with Paragraph 7(a)(ii) hereof. At the Close
        of Escrow, there will be no outstanding contracts entered into by Seller
        for the construction or repair of any improvements to the Real Property
        that have not been fully paid for, and Seller will cause to be discharged
        all mechanics’ and materialmen’s liens arising from any labor
        or materials furnished to the Real Property prior to the Close of Escrow;

      
      -15-
         

      
      

    

	 

      
      (g)      Hazardous
Wastes. To Seller’s Knowledge, there is no asbestos or materials
containing asbestos incorporated into any of the Improvements. To Seller’s
Knowledge, the Property is not in violation of any federal, state or local
law, ordinance or regulation relating to industrial hygiene or to the
environmental conditions on, under or about the Property or the Improvements
including, without limitation, soil and groundwater condition. Seller
further represents and warrants that neither Seller nor, to Seller’s
Knowledge, any third party has used, generated, manufactured, stored or
disposed of on, under or about the Property or transported to or from
the Property any flammable explosives, radioactive materials, hazardous
wastes, toxic substances or related materials (“Hazardous Materials”).
To Seller’s Knowledge, there is no presence, use, treatment, storage,
release or disposal of any Hazardous Materials at, on, upon, beneath or
about the Land or the Improvements. For purposes of this subparagraph,
the term Hazardous Materials will include, without limitation, asbestos,
petroleum and any petroleum by-products, urea formaldehyde, foam insulation,
polychlorinated biphenyls, and any other substance that is a “Hazardous
Substance” under California Health and Safety Code Section 25316
and in the regulations adopted and publications promulgated pursuant to
said statute and any amendments thereto; 

      
      (h)    Structural,
        Mechanical and Electrical Defects. To Seller’s Knowledge, there
        are no physical or mechanical defects or deficiencies in the condition
        of the Property, including, without limitation, the roofs, exterior walls
        or structural components of the Improvements and the heating, air conditioning,
        plumbing, ventilating, utility, sprinkler and other mechanical and electrical
        systems, apparatus and appliances located on the Property or in the Improvements
        and all such items are in good operating condition and repair;

      
      (i)    No
        Prior Transfer. Seller has not previously sold, transferred or conveyed
        the Property and Seller has not entered into any executory contracts for
        the sale of the Property (other than this Agreement), nor do there exist
        any rights of first refusals or options to purchase the Property.

      
      (j)    Cheesecake
        Lease; Brokers. All tenant improvement work to be performed by Seller
        pursuant to the Cheesecake Lease has been fully completed and paid. Seller
        has delivered to Buyer true, accurate and complete copies of all documents
        demonstrating that no credit is due to Buyer for any unused tenant improvement
        allowance that was due Buyer under the Cheesecake Lease. No leasing or
        other commissions or fees are due, or will become due, on an absolute
        or contingent basis to any real estate brokers or agents or anyone else
        in connection with the Property or any portion thereof and no such commissions
        or fees will become due during the term of any lease or with respect to
        any renewal or extension thereof or the leasing of additional space by
        any lessee. After the Closing Date, Buyer will be under no obligation
        to pay any fee, commission or any other sum due to any broker or similar
        agent relating to the leasing of the Property [as a result of any contract,
        agreement, or any other arrangement that Seller may have or have made
        with any other party];

      
      -16-
         

      
      

    

	 

      
      (k)    Insurance
        Notices. Seller has not received any notice from
        any of Seller’s insurance carriers or any insurance carrier of Buyer
        of any defects or inadequacies in the Property, or any portion thereof,
        that would adversely affect the insurability of the Property or the cost
        of any such insurance. There are no pending insurance claims with respect
        to all or any portion of the Property;

      
      (l)    
      Seller’s Knowledge. Valerie Draeger and Mark Belliveau
      (i) are familiar with the Property and the operations thereon; (ii) individually
      or collectively represent all of the representatives, employees or agents
      of Seller that hold the best knowledge of the Property, and (iii) are
      and have access to all relevant information necessary for Seller to make
      the representations and warranties contained in this Paragraph 14,
      including, without limitation, the Contracts, notices relating to the Property,
      correspondence relating to the Property and insurance policies;

      
      (m)    Representations
        and Warranties at Closing. The representations and warranties of Seller
        set forth in this Agreement shall be deemed to be remade and restated
        by Seller on and as of the Close of Escrow; and

      
      (n)    As-Is.
        Except for the representations and warranties contained in this Agreement,
        Buyer will be purchasing the Property “as-is, where-is, without representations
        and warranties.”

      15.    Buyer’s
        Representations and Warranties.
        In consideration of Seller entering into this Agreement and as an inducement
        to Seller to purchase the Property, Buyer makes the following covenants,
        representations and warranties, each of which is material and is being
        relied upon by Seller (and the continued truth and accuracy of which will
        constitute a condition precedent to Seller’s obligations hereunder):

      
      (a)    Representations
        Regarding Buyer’s Authority.

      
        (i)    Buyer
        has the legal power, right and authority to enter into this Agreement
        and the instruments referenced herein, and to consummate the transaction
        contemplated hereby;

      (ii)    All
        requisite action (corporate, trust, partnership or otherwise) has been
        taken by Buyer in connection with the entering into this Agreement, the
        instruments referenced herein, and the consummation of the transaction
        contemplated hereby. No consent of any partner, shareholder, trustee,
        trustor, beneficiary, creditor, investor, judicial or administrative body,
        governmental authority or other party is required;

      (iii)    The
        individuals executing this Agreement and the instruments referenced herein
        on behalf of Buyer and the partners of Buyer, if any, have the legal power,
        right, and actual authority to bind Buyer to the terms and conditions
        hereof and thereof;

      
      -17-
         

      
      

    

	 

      (iv)    This
        Agreement and all documents required hereby to be executed by Buyer are
        and will be valid, legally binding obligations of and enforceable against
        Buyer in accordance with their terms; and

      (v)    Neither
        the execution and delivery of this Agreement and the documents and instruments
        referenced herein, nor the incurrence of the obligations set forth herein,
        nor the consummation of the transaction contemplated herein, nor compliance
        with the terms of this Agreement and the documents and instruments referenced
        herein conflict with or result in the material breach of any terms, conditions
        or provisions of, or constitute a default under, any bond, note, or other
        evidence of indebtedness or any contract, indenture, mortgage, deed of
        trust, loan, partnership agreement, lease or other agreement or instrument
        to which Buyer is a party or affecting the Property.

      
      (b)    Buyer’s
        Knowledge. As used herein, the term “Buyer’s Knowledge”
        will mean the actual knowledge of David Overton and Debby Zurzolo, without
        the duty of further inquiry by Buyer. To Buyer’s knowledge, Buyer,
        as the Cheesecake Tenant or, if this Agreement is so assigned, an affiliate
        of the Cheesecake Tenant, has no knowledge of any facts regarding the
        physical or structural nature of the Land and the Improvements that are
        inconsistent with Seller’s representations and warranties made in
        Paragraph 14 above. David Overton and Debby Zurzolo (i) are familiar
        with the Property and the operations of the Cheesecake Tenant thereon;
        (ii) individually or collectively represent all of the representatives,
        employees or agents of Seller that hold the best knowledge of the Cheesecake
        Tenant’s occupancy and use of the Property, (iii) are and have
        access to all relevant information necessary for Buyer to make the representations
        and warranties contained in this Paragraph 15; and

      
      (c)    Representations
        and Warranties at Closing. The representations of Buyer set forth
        in this Agreement shall be deemed to be remade and restated by Buyer on
        and as of the Close of Escrow.

      	
            16.

          	

      Remedies

          

	
      
      
        (a)     LIQUIDATED
        DAMAGES. PROVIDED BUYER HAS NOT ELECTED TO TERMINATE THIS AGREEMENT
        PURSUANT TO ANY OF BUYER’S RIGHTS TO DO SO CONTAINED HEREIN, IF AFTER
        THE EXPIRATION OF THE CONTINGENCY PERIOD BUYER COMMITS A DEFAULT UNDER
        THIS AGREEMENT AND THE CLOSE OF ESCROW FAILS TO OCCUR SOLELY BY REASON
        OF SUCH DEFAULT, THEN UPON SELLER’S INSTRUCTION ESCROW HOLDER SHALL
        CANCEL THE ESCROW AND DELIVER THE DEPOSIT TO SELLER AND SELLER SHALL THEREUPON
        BE RELEASED FROM ITS OBLIGATIONS HEREUNDER. BUYER AND SELLER AGREE THAT
        BASED UPON THE CIRCUMSTANCES NOW EXISTING, KNOWN AND UNKNOWN, IT WOULD
        BE IMPRACTICAL OR EXTREMELY DIFFICULT TO ESTABLISH SELLER’S DAMAGE
        BY REASON OF BUYER’S DEFAULT. ACCORDINGLY, BUYER AND SELLER AGREE
        THAT IT WOULD BE REASONABLE AT SUCH TIME TO AWARD SELLER “LIQUIDATED
        DAMAGES” EQUAL TO THE AMOUNT OF THE DEPOSIT PREVIOUSLY PLACED INTO
        ESCROW BY BUYER PURSUANT TO PARAGRAPH 3 HEREOF. 

      
      -18-
         

      
      

    

	 

      
      SELLER
        AND BUYER ACKNOWLEDGE AND AGREE
        THAT THE FOREGOING AMOUNT IS REASONABLE AS LIQUIDATED DAMAGES AND SHALL
        BE SELLER’S SOLE AND EXCLUSIVE REMEDY IN LIEU OF ANY OTHER RELIEF,
        RIGHT OR REMEDY, AT LAW OR IN EQUITY, TO WHICH SELLER MIGHT OTHERWISE
        BE ENTITLED BY REASON OF BUYER’S DEFAULT UNDER THIS AGREEMENT. ACCORDINGLY,
        IF BUYER COMMITS A DEFAULT UNDER THIS AGREEMENT AND THE CLOSE OF ESCROW
        FAILS TO OCCUR SOLELY BY REASON OF SUCH DEFAULT, SELLER MAY INSTRUCT THE
        ESCROW HOLDER TO CANCEL THE ESCROW, WHEREUPON SELLER SHALL BE RELIEVED
        FROM ALL LIABILITY HEREUNDER, AND, PROMPTLY FOLLOWING ESCROW HOLDER’S
        RECEIPT OF SUCH INSTRUCTION, ESCROW HOLDER SHALL (i) CANCEL THE ESCROW,
        AND (ii) DISBURSE TO SELLER THE DEPOSIT. WITHOUT LIMITING THE FOREGOING
        PROVISIONS OF THIS PARAGRAPH, SELLER WAIVES ANY AND ALL RIGHTS THAT SELLER
        OTHERWISE WOULD HAVE HAD UNDER CALIFORNIA CIVIL CODE SECTION 3389 TO SPECIFICALLY
        ENFORCE THIS AGREEMENT. IF THE CLOSE OF ESCROW FAILS TO OCCUR FOR ANY
        REASON OTHER THAN BUYER’S DEFAULT UNDER THIS AGREEMENT, THEN ESCROW
        HOLDER SHALL IMMEDIATELY RETURN TO BUYER THE DEPOSIT, TOGETHER WITH ALL
        INTEREST ACCRUED THEREON. SELLER AND BUYER ACKNOWLEDGE THAT THEY HAVE
        READ AND UNDERSTAND THE PROVISIONS OF THIS PARAGRAPH 16 AND BY THEIR INITIALS
        IMMEDIATELY BELOW AGREE TO BE BOUND BY ITS TERMS.

	 	
      Seller’s
        Initials

        _______________ 

    	
      Buyer’s Initials

        _______________ 

    

	
      
      
        (b)    Seller’s
        Alternative Remedy. Seller shall have available to it the right to
        specifically enforce this Agreement if after the Contingency Period, Buyer
        defaults in its obligation to purchase the Property from Seller; provided,
        however, that if Seller elects to specifically enforce this Agreement
        pursuant to this Paragraph 16(b), then Seller will waive its right to
        receive the liquidated damages set forth in Paragraph 16(a) above and
        must return immediately to Buyer any amounts received from Escrow Holder
        in accordance with the terms contained therein.

      
      -19-
         

      
      

    

	 

      
      (c)    Buyer’s
        Remedies. Buyer and Seller hereby agree that,
        if the sale contemplated by this Agreement is not completed as herein
        provided by reason of any default of Seller hereunder, then in addition
        to the return of the Deposit and all interest accrued thereon, Buyer shall
        be entitled to (1) pursue any remedy available under this Agreement
        or available at law or in equity, including, without limitation, the right
        to specifically enforce this Agreement and (2) reimbursement by Seller
        of all of Buyer’s costs and expenses (including, without limitation,
        reasonable attorneys’ fees, costs and expenses) associated with Buyer’s
        enforcement of the contract and acquisition of the Property. 

      	
            17.

          	
            Damage
              or Condemnation Prior to Closing

          

	

      
      
        (a)    
      In the event that prior to the Close of Escrow, the Real Property,
      or any portion thereof, is destroyed or materially damaged, Buyer shall
      have the right, exercisable by giving written notice to Seller within fifteen
      (15) days after receipt of written notice of such damage or destruction,
      either (i) to terminate this Agreement, in which event the Deposit
      and all interest accrued thereon will be immediately returned to Buyer,
      any other money or documents in Escrow shall be returned to the party depositing
      the same, and neither party hereto shall have any further rights or obligations
      hereunder, or (ii) to accept the Real Property in its then condition
      and to proceed with the consummation of the transaction contemplated by
      this Agreement, with an abatement or reduction in the Purchase Price equal
      to the amount of the deductible for the applicable insurance coverage, and
      to receive an assignment of all of Seller’s rights to any insurance
      proceeds payable by reason of such damage or destruction, or if the casualty
      is not insured, an abatement or reduction in the Purchase Price equal to
      the cost to repair such damage. If Buyer elects to proceed under clause (ii)
      above, Seller will not compromise, settle or adjust any claims to such proceeds
      without Buyer’s prior written consent, which consent Buyer may withhold
      in its sole and absolute discretion. If the casualty is not covered by any
      of Seller’s insurance policies, then clause (ii) above will not apply
      and Buyer must elect to (A) accept the Property in its then condition with
      no reduction in the Purchase Price or (B) terminate this Agreement. 

      
      (b)    In
        the event that prior to the Close of Escrow there is any non-material
        damage to the Real Property, or any part thereof, Buyer will accept the
        Real Property in its then condition with an abatement or reduction in
        the Purchase Price equal to the amount of the deductible for the applicable
        insurance coverage (or the cost to repair such damage if uninsured) and
        proceed with the transaction contemplated by this Agreement, in which
        event Buyer will be entitled to an assignment of all of Seller’s
        rights to any insurance proceeds payable by reason of such damage or destruction.
        In such event, Seller will not compromise, settle or adjust any claims
        to such proceeds without Buyer’s prior written consent, which consent
        Buyer may withhold in its sole and absolute discretion. If the non-material
        damage is not covered by any of Seller’s insurance policies, then
        Seller will not reduce the Purchase Price and Buyer must elect to either
        (A) accept the Property in its then condition or (B) terminate this Agreement.

      
      -20-
         

      
      

    

	 

      
      (c)    In
        the event that prior to the Close of Escrow, all or any material portion
        of the Real Property is subject to a taking by a public or governmental
        authority, Buyer will have the right, exercisable by giving written notice
        to Seller within fifteen (15) days after receiving written notice of such
        taking, either (i) to terminate this Agreement, in which event the
        Deposit and all interest accrued thereon shall be immediately returned
        to Buyer, any other money or documents in Escrow shall be returned to
        the party depositing the same, and neither party hereto shall have any
        further rights or obligations hereunder, or (ii) to accept the Real
        Property in its then condition, without a reduction in the Purchase Price,
        and to receive an assignment of all of Seller’s rights to any condemnation
        award or proceeds payable by reason of such taking. If Buyer elects to
        proceed under clause (ii) above, Seller will not compromise, settle or
        adjust any claims to such award without Buyer’s prior written consent,
        which consent Buyer may withhold in its sole and absolute discretion.

      
      (d)    In
        the event that prior to the Close of Escrow, any non-material portion
        of the Real Property is subject to a taking by any public or governmental
        authority, Buyer shall accept the Real Property in its then condition
        and proceed with the consummation of the transaction contemplated by this
        Agreement, in which event Buyer will be entitled to an assignment of all
        of Seller’s rights to any award or proceeds payable in connection
        with such taking. In the event of any such non-material taking, Seller
        will not compromise, settle or adjust any claims to such award without
        Buyer’s prior written consent, which consent Buyer may withhold in
        its sole and absolute discretion.

      
      (e)    
      For purposes of this Paragraph 17, damage to the Real
      Property or a taking of a portion thereof shall be deemed to involve a material
      portion thereof if the estimated cost of restoration or repair, as estimated
      by Buyer in Buyer’s sole and absolute discretion, of such damage or
      the amount of the condemnation award with respect to such taking shall exceed
      Two Hundred Fifty Thousand Dollars ($250,000). 

      
      (f)    Seller
        agrees to give Buyer prompt written notice of any taking of, proposed
        taking of, damage to or destruction of the Real Property.

      18.    Notices.
        All notices or other communications required or permitted hereunder must
        be in writing, and must be personally delivered, sent by a reputable overnight
        delivery service (Federal Express, UPS or the like) or sent by registered
        or certified mail, postage prepaid, return receipt requested, telegraphed,
        delivered or sent by telex, telecopy, facsimile, fax or cable and shall
        be deemed received upon the earlier of (i) if personally delivered,
        the date of delivery to the address of the person to receive such notice,
        (ii) if sent by overnight mail, the business day following its deposit
        in such overnight mail facility, (iii) if mailed, three (3) business
        days after the date of posting by the United States post office, (iv) if
        given by telegraph or cable, when delivered to the telegraph company with
        charges prepaid, or (v) if given by telex, telecopy, facsimile or
        fax, when sent. Any notice, request, demand, direction or other communication
        sent by cable, telex, telecopy, facsimile or fax must be confirmed within
        forty-eight (48) hours by letter mailed or delivered in accordance with
        the foregoing.

      
      -21-
         

      
      

    

		
		 To
      Buyer:		The
      Cheesecake Factory Incorporated	 
		          		26950 Agoura
      Road	 
		        		Calabasas
      Hills, California 91301	 
		      		Attention:
      General Counsel	 
		    		Phone No.
      (818) 871-3000	 
		          		Fax No.     
      (818) 871-3110	 
					 
		 With
      a copy to:		Greenberg
      Glusker Fields Claman Machingter	 
		          		   &
      Kinsella LLP	 
		          		1900 Avenue
      of the Stars, Suite 2100	 
		        		Los Angeles,
      California 90067-4590	 
		      		Attention:
      Dennis B. Ellman, Esq.	 
		             		Phone No.
      (310) 553-3610	 
		           		Fax No.     
      (310) 553-0687	 
					 
		 To
      Seller:		PEGH Investments,
      LLC	 
		         		c/o Triliad
      Development, Inc.	 
		         		270 Conejo
      Ridge Avenue, Suite 200	 
		         		Thousand
      Oaks, California 91361	 
		       		Attention:
      Ms. Valerie Draeger	 
		     		Phone No.
      (805) 379-9800	 
		            		Fax No.     
      (805) 379-9560	 
					 
		 With
      a copy to:		Case, Knowlson,
      Jordan &  Wright LLP	 
		          		2049 Century
      Park East, Suite 3360	 
		        		Los Angeles,
      California 90067	 
		      		Attention:
      Patrick Walsh, Esq.	 
		    		Phone No.
      (310) 552-2766	 
		  		Fax No.     
      (310) 552-3229	 
					 
		 To
      Escrow Holder:		Commerce
      Escrow Company	 
				1545 Wilshire
      Boulevard, Suite 600	 
				Los Angeles,
      California 90017	 
				Attention:
      Mr. Mark Minsky	 
				Phone No.
      (213) 484-0855	 
				Fax No.     
      (213) 484-0417	 

	

      Notice
        of change of address shall be given by written notice in the manner detailed
        in this Paragraph 18. Rejection or other refusal to accept or the inability
        to deliver because of changed address of which no notice was given shall
        be deemed to constitute receipt of the notice, demand, request or communication
        sent.

      
      -22-
         

      
      

    

	 

      19.    Brokers.
        Buyer and Seller acknowledge that they are both represented by CB Richard
        Ellis, Inc. in this transaction and have consented to this dual representation.
        Upon the Close of Escrow, Seller will pay a real estate brokerage commission
        to CB Richard Ellis, Inc. (Robert Shafer, Bill Inglis, Robert Flink,
        Lisa Hoshek and David Solomon, (“Seller’s
        Broker”), with respect to this transaction
        in accordance with Seller’s separate agreement with Seller’s
        Broker, and Seller hereby agrees to indemnify, protect, defend (with counsel
        reasonably approved by Buyer) and hold Buyer free and harmless from and
        against any and all commissions or other claims Seller’s Broker may
        assert in connection with the parties entering into, or consummating the
        transactions contemplated by, this Agreement. Upon the Close of Escrow,
        Buyer will pay a real estate brokerage commission to CB Richard Ellis,
        Inc. (Ronnie Wade, Alan Aufhammer, Mark Leonard, and Matthew Hayn) (“Buyer’s
        Broker”), with respect to this transaction
        in accordance with Buyer’s separate agreement with Buyer’s Broker,
        and Buyer hereby agrees to indemnify, protect, defend (with counsel reasonably
        approved by Seller) and hold Seller free and harmless from and against
        any and all commissions or other claims Buyer’s Broker may assert
        in connection with the parties entering into, or consummating the transactions
        contemplated by this Agreement. If any additional claims for broker’s
        or finders’ fees for the consummation of this Agreement arise, then
        Buyer hereby agrees to indemnify, protect, save harmless and defend Seller
        from and against such claims if they are based upon any statement, representation
        or agreement made by Buyer, and Seller hereby agrees to indemnify, protect,
        save harmless and defend Buyer from and against such claims if they are
        based upon any statement, representation or agreement made by Seller.

      20.    Legal
        Fees. In the event of the bringing of any action
        or suit by a party hereto against another party hereunder by reason of
        any breach of any of the covenants or agreements or any inaccuracies in
        any of the representations and warranties on the part of the other party
        arising out of this Agreement, then in that event, the prevailing party
        in such action or dispute, whether by final judgment or out of court settlement,
        will be entitled to have and recover of and from the other party all costs
        and expenses of suit, including actual attorneys’ fees. Any judgment
        or order entered in any final judgment shall contain a specific provision
        providing for the recovery of all costs and expenses of suit, including
        actual attorneys’ fees (collectively “Costs”) incurred in enforcing, perfecting
        and executing such judgment. For the purposes of this paragraph, Costs
        will include, without limitation, attorneys’ fees, costs and expenses
        incurred in the following: (i) postjudgment motions; (ii) contempt
        proceeding; (iii) garnishment, levy, and debtor and third party examination;
        (iv) discovery; and (v) bankruptcy litigation.

      21.    Assignment.
        Seller may not assign, transfer or convey its rights or obligations under
        this Agreement without the prior written consent of Buyer, and then only
        if Seller’s assignee assumes in writing all of Seller’s obligations
        hereunder; provided, however, Seller will in no event be released from
        its obligations hereunder by reason of such assignment. Buyer, without
        being relieved of liability hereunder and without obtaining Seller’s
        consent, will have the right to assign its rights and obligations hereunder
        or to nominate another person or entity in whom title to the Property
        will vest

      
      -23-
         

      
      

    

 

      	
            22.

          	
            Miscellaneous 

          

	
      
      
        (a)    Survival
        of Covenants. Except as expressly provided for herein, the covenants,
        representations and warranties of both Buyer and Seller set forth in this
        Agreement will survive the recordation of the Deed and the Close of Escrow
        for a period of eighteen (18) months.

      
      (b)    Required
        Actions of Buyer and Seller. Buyer and Seller agree to execute such
        instruments and documents and to diligently undertake such actions as
        may be required in order to consummate the purchase and sale herein contemplated
        and will use their best efforts to accomplish the Close of Escrow in accordance
        with the provisions hereof.

      
      (c)    Computation
        of Time Periods. If the date upon which the Contingency
        Period expires, the Closing Date or any other date or time period provided
        for in this Agreement is or ends on a Saturday, Sunday or federal, state
        or legal holiday, then such date will automatically be extended until
        5 p.m. Pacific Time of the next day that is not a Saturday, Sunday
        or federal, state or legal holiday.

      
      (d)    Counterparts.
        This Agreement may be executed in multiple counterparts, each of which
        will be deemed an original, but all of which, together, will constitute
        but one and the same instrument.

      
      (e)    Captions.
        Any captions to, or headings of, the paragraphs or subparagraphs of this
        Agreement are solely for the convenience of the parties hereto, are not
        a part of this Agreement, and will not be used for the interpretation
        or determination of the validity of this Agreement or any provision hereof.

      
      (f)    No
        Obligations to Third Parties. Except as otherwise expressly provided
        herein, the execution and delivery of this Agreement will not be deemed
        to confer any rights upon, nor obligate any of the parties hereto, to
        any person or entity other than the parties hereto.

      
      (g)    Exhibits
        and Schedules. The Exhibits and Schedules attached
        hereto are hereby incorporated herein by this reference for all purposes.

      
      (h)    Amendment
        to this Agreement. The terms of this Agreement
        may not be modified or amended except by an instrument in writing executed
        by each of the parties hereto.

      
      (i)    Waiver.
        The waiver or failure to enforce any provision of this Agreement shall
        not operate as a waiver of any future breach of any such provision or
        any other provision hereof.

      
      -24-
         

      
      

    

	 

      
      (j)    Applicable
        Law. This Agreement shall be governed by and construed
        in accordance with the laws of the State of California.

      
      (k)    Fees
        and Other Expenses. Except as otherwise provided herein, each of the
        parties hereto shall pay its own fees and expenses in connection with
        this Agreement.

      
      (l)    Entire
        Agreement. This Agreement supersedes any prior
        agreements, negotiations and communications, oral or written, and contains
        the entire agreement between Buyer and Seller as to the subject matter
        hereof. No subsequent agreement, representation, or promise made by either
        party hereto, or by or to an employee, officer, agent or representative
        of either party hereto will be of any effect unless it is in writing and
        executed by the party to be bound thereby.

      
      (m)    Successors
        and Assigns. Subject to the restrictions set forth in Paragraph 21
        hereof, this Agreement shall be binding upon and will inure to the benefit
        of the successors and assigns of the parties hereto.

      
      (n)    Construction.
        The parties hereto hereby acknowledge and agree that (i) each party
        hereto is of equal bargaining strength, (ii) each party has actively
        participated in the drafting, preparation and negotiation of this Agreement,
        (iii) each party has consulted with it’s own, independent counsel,
        and other professional advisors as such party has deemed appropriate,
        relative to any and all matters contemplated under this Agreement, (iv) each
        party and such party’s counsel and advisors have reviewed this Agreement,
        (v) each party has agreed to enter into this Agreement following
        such review and the rendering of such advice, and (vi) any rule of
        construction to the effect that ambiguities are to be resolved against
        the drafting parties will not apply in the interpretation of this Agreement,
        or any portions hereof, or any amendments hereto.

[Signature Page
Follows] 

      
      -25-
         

      
      

    

	

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

		
	
      “Seller”		PEGH
      INVESTMENTS, LLC,	 
	  		a
      California limited liability company	 
	 	 	 	 
	  		By:
       /s/ Gene Hass

             —————————————————————
      	 
	    		      Name:
       Gene Hass

                       ———————————————————	 
	      		      Title:
      Managing Member

                      ———————————————————
      	 
	 	 	 	 
	“Buyer”		THE
      CHEESECAKE FACTORY INCORPORATED,	 
	     		a
      Delaware corporation	 
	 	 	 	 
	       		By:
       /s/ David Overton

             —————————————————————
      	 
	         		      Name:
       David Overton

                       ———————————————————
      	 
	           		      Title:
       Chief Executive Officer

                      ———————————————————
      	 

	

Signature Page  

      

      
      

    

	 

Acceptance by Escrow Holder:

Commerce Escrow Company hereby acknowledges that it has received a fully executed original or original executed counterparts of the foregoing Agreement of Purchase and Sale and Joint Escrow Instructions and agrees to act as Escrow Holder thereunder and to be bound by and strictly perform the terms thereof as such terms apply to Escrow Holder.

	Dated: ____________, 2004  		————————————————

By:  

      ——————————————

        Its: Authorized Agent

	

      

      
      

    

	 

EXHIBIT “A” 

DESCRIPTION OF THE LAND

[To Be Supplied]

EXHIBIT  “A”  

      

      
      

    

	 

EXHIBIT “B”

[RESERVED]

EXHIBIT  “B”  

      

      
      

    

	 

EXHIBIT “C”

DEED

RECORDING REQUESTED BY AND

WHEN
RECORDED RETURN TO 
AND 
MAIL TAX STATEMENTS TO: 

The Cheesecake Factory
Incorporated
26950 Agoura Road
Calabasas Hills, California 91301
Attn:________________________ 

(Above Space for Recorder’s
Use Only)  

GRANT DEED  

Assessor’s Parcel
Number: 2064-004-100  

The undersigned
grantor declares: In accordance with Section 11932 of the California Revenue
and Taxation Code, Grantor has declared the amount of the transfer tax that is due by a
separate statement that is not being recorded with this Grant Deed. 

        FOR
VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, PEGH INVESTMENTS, LLC, a
California limited liability company (“Grantor”), hereby grants to THE
CHEESECAKE FACTORY INCORPORATED, a Delaware corporation, (“Grantee”), the real
property located in the City of Calabasas, County of Los Angeles, State of California,
more particularly describe on Exhibit “A” attached hereto and made a part hereof
(the “Property”).  

		
	Dated:
      ___________, 2004		PEGH
      INVESTMENTS, LLC,	 
			a California
      limited liability company	 
	 	 	 	 
			By:_____________________________	 
	  		      Name:	 
	    		      Title:	 

	

EXHIBIT “C” 

	

     

		
	STATE
      OF _________		)	
			)
      ss.	
	COUNTY
      OF ____________		)	

On
 _____________________________, before me,
_____________________________, Notary Public,

                                    
                        
                
               (Print Name of
Notary Public)
 personally appeared
     _____________________________ 

		      |_| 	personally
known to me

                
    -or-

		|_|	
proved to me on the basis of satisfactory evidence to be the person(s) whose name(s)
is/are subscribed to the within instrument and acknowledged to me that he/she/they
executed the same in his/her/their authorized capacity(ies), and that by his/her/their
signature(s) on the instrument the person(s), or the entity upon behalf of which the
person(s) acted, executed the instrument.

		
	 		WITNESS
      my hand and official seal.	 
	 	 	 	 
	 		__________________________________	 
	 		Signature
      Of Notary	 

	

OPTIONAL 

Though the data below is not required
by law, it may prove valuable to persons relying on the document and could prevent
fraudulent reattachment of this form. 

		
	                    CAPACITY
      CLAIMED BY SIGNER		 	
      DESCRIPTION
        OF ATTACHED DOCUMENT

    	 
	 	 
	  |_|
           Individual	
	  |_|
           Corporate Officer	
	 	 	 	 	 
	__________________________________________	 	 	 ____________________________________________	 
	
        Title(s)

    		 	
      Title
        Or Type Of Document

    	 
	 	 
	  |_|    
        Partner(s)     |_| Limited	
	     
                       
                 |_|
      General	
	  |_|
           Attorney-In-Fact	
	  |_|
           Trustee(s)	
	  |_|  
         Guardian/Conservator		 	____________________________________________	 
	  |_|      Other:________________________________		 	
      Number
        Of Pages

    	 
	 	 
	  Signer
      is representing:	
	  Name
      Of Person(s) Or Entity(ies)	
	  
			 	____________________________________________	 
			 	
      Date
        Of Documents

    	 
	__________________________________________		 	 	 
	__________________________________________	   	 	____________________________________________	 
			 	
      Signer(s)
        Other Than Named Above

    	 

	

	

EXHIBIT “A” 

DESCRIPTION OF REAL
PROPERTY CONVEYED 

EXHIBIT “A” 

	

Document No.
______________ 

Recorded _____________,
2004 

	 	
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 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:		PEGH
      INVESTMENTS, LLC, a California limited liability company	 
	 	 	 	 
	Grantee:		THE
      CHEESECAKE FACTORY INCORPORATED,	 
	 		a
      Delaware corporation	 

	

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

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

	|X|  	Computed
on full value of property conveyed. 

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

		
			PEGH
      INVESTMENTS, LLC,	 
	  		a
      California limited liability company	 
	 	 	 	 
	    		By:__________________________	 
			      Name:	 
	  		      Title:	 

	

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

EXHIBIT “C” 

	

EXHIBIT “D” 

[RESERVED] 

EXHIBIT “D”
-1- 

	

EXHIBIT “E” 

FORM 593-W 

EXHIBIT “E” 
-1- 

	

EXHIBIT “F” 

TENANT LEASE ASSIGNMENT 

        THIS
TENANT LEASE ASSIGNMENT (“Assignment”) is dated as of _______________,
2004 by and between PEGH INVESTMENTS, LLC, a California limited liability company
(“Assignor”), and THE CHEESECAKE FACTORY INCORPORATED, a Delaware corporation
(“Assignee”). 

W I T N E S S E T H: 

        A. Assignor
and Assignee entered into that certain Agreement of Purchase and Sale and Joint Escrow
Instructions, dated as of _____________, 2004 (“Agreement”), respecting the sale
of the “Property” (as defined in the Agreement). 

        B. Under
the Agreement, Assignor is obligated to assign to Assignee any and all of Assignor’s
right, title and interest in and to all leases, licenses, rental agreements or occupancy
agreements relative to the real property (“Real Property”) described in Exhibit
“1” attached hereto, together with all rents, issues and profits thereunder
(collectively, the “Tenant Leases”) and all security deposits, prepaid rentals,
cleaning fees and other deposits, plus any interest accrued thereon, paid by tenants of
the Real Property to Assignor or any other person (“Tenant Deposits”), which
Tenant Leases and Tenant Deposits are set forth on Exhibit “2” attached hereto. 

        NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto hereby agree as follows: 

        1. Assignor
hereby assigns, sells, transfers, sets over and delivers unto Assignee all of
Assignor’s estate, right, title and interest in and to the Tenant Leases and the
Tenant Deposits and Assignee hereby accepts such assignment. 

        2. Assignor
hereby covenants that Assignor will, at any time and from time to time upon written
request therefor, execute and deliver to Assignee, Assignee’s successors, nominees or
assigns, such documents as Assignee or they may reasonably request in order to fully
assign and transfer to and vest in Assignee or Assignee’s successors, nominees and
assigns the Tenant Leases and the Tenant Deposits, and to protect Assignee’s or their
right, title and interest in and to the Tenant Leases and the Tenant Deposits and the
rights of Assignor intended to be transferred and assigned hereby, or to enable Assignee,
Assignee’s successors, nominees and assigns to realize upon or otherwise enjoy such
rights in and to the Tenant Leases and the Tenant Deposits. 

        3. Assignee
hereby assumes the performance of all of the terms, covenants and conditions imposed upon
Assignor as landlord under the Tenant Leases accruing or arising on or after the
“Close of Escrow” (as defined in the Agreement). 

EXHIBIT “F”
-1- 

	

        4. Assignor
hereby agrees to indemnify, protect, defend (with counsel chosen by Assignee) and hold
harmless Assignee from and against any and all liability, loss, cost, damage or expense
(including, without limitation, reasonable attorneys’ fees, cost and expenses) that
Assignee may incur under the Tenant Leases, and from any and all claims and demands
whatsoever that may be asserted against Assignee by reason of any alleged obligation or
undertaking on its part to perform or discharge any of the terms, covenants or agreements
contained therein, which claims or demands arise from events occurring prior to the Close
of Escrow. Assignee hereby agrees to indemnify, protect, defend (with counsel chosen by
Assignor) and hold harmless Assignor from and against any and all liability, loss, cost,
damage or expense (including, without limitation, reasonable attorneys’ fees, costs
and expenses) that Assignee may incur under the Tenant Leases, and from any and all claims
and demands whatsoever that may be asserted against Assignor by reason of any alleged
obligation or undertaking on its part to perform or discharge any of those terms,
covenants or agreements contained therein, which claims or demands arise from events
occurring on and after the Close of Escrow. 

        5. In
the event of the bringing of any action or suit by a party hereto against another party
hereunder by reason of any breach of any of the covenants, conditions, agreements or
provisions on the part of the other party arising out of this Assignment, then in that
event the prevailing party will be entitled to have and recover of and from the other
party all costs and expenses of the action or suit, including reasonable attorneys’
fees. 

        6. This
Assignment may be executed in counterparts, each of which shall be deemed an original, but
all of which, together, shall constitute one and the same instrument. 

        7. This
Assignment will be binding upon and inure to the benefit of the successors, assignees,
personal representatives, heirs and legatees of all the respective parties hereto. 

        8. This
Assignment will be governed by, interpreted under, and construed and enforceable in
accordance with, the laws of the State of California. 

[Signature Page Follows] 

EXHIBIT “F”
-2- 

	

        IN
WITNESS WHEREOF, Assignor and Assignee have executed and delivered this Assignment as of
the day and year first written above. 

		
	“Assignor”		PEGH
      INVESTMENTS, LLC,	 
	  		a
      California limited liability company	 
	 	 	 	 
	  		By:
      __________________________________	 
	    		      Name:
       ______________________	 
	      		      Title:
       _______________________	 
	 	 	 	 
	“Assignee”		THE
      CHEESECAKE FACTORY INCORPORATED,	 
	     		a
      Delaware corporation	 
	 	 	 	 
	       		By:
      _________________________________	 
	         		      Name:
       ______________________	 
	           		      Title:
       _______________________	 

	

[Attach Real
Property Description as Exhibit “1”
 and Schedule of Leases and Security Deposits
as Exhibit “2”] 

EXHIBIT “F” 
-3-

	

EXHIBIT “G” 

ASSIGNMENT
 OF 
CONTRACTS AND
ASSUMPTION AGREEMENT  

        THIS
ASSIGNMENT OF CONTRACTS AND ASSUMPTION AGREEMENT (“Assignment”), is dated
as of ______________, 2004 by and between PEGH INVESTMENTS, LLC, a California limited
liability company (“Assignor”), and THE CHEESECAKE FACTORY INCORPORATED, a
Delaware corporation (“Assignee”). 

W I T N E S S E T H:
 

        A. Assignor
and Assignee entered into that certain Agreement of Purchase and Sale and Joint Escrow
Instructions, dated ____________, 2004, (“Agreement”), for the purchase and sale
of certain real property (“Property”) more particularly described in the
Agreement. 

        B. This
Assignment is being made pursuant to the terms of the Agreement for the purpose of
assigning to Assignee all of Assignor’s right, title and interest in and to those
certain contracts, warranties and guaranties, together with all supplements, amendments
and modifications thereto approved by Buyer pursuant to the Agreement (collectively, the
“Contracts”). The Contracts are more particularly described in Exhibit
“1” attached hereto. 

        NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto hereby agree as follows: 

        1. Assignor
hereby grants, assigns, transfers, conveys and delivers to Assignee the Contracts and all
of Assignor’s right, title, interest, benefits and privileges thereunder, and
Assignee hereby accepts such Assignment. 

        2. Assignor
hereby agrees to indemnify, protect, defend (with counsel chosen by Assignee) and hold
harmless Assignee from and against any and all liability, loss, cost, damage or expense
(including, without limitation, reasonable attorneys’ fees, costs and expenses) that
Assignee may incur under the Contracts, and from any and all claims and demands whatsoever
that may be asserted against Assignee by reason of any alleged obligation or undertaking
on its part to perform or discharge any of the terms, covenants or agreements contained
therein, which claims or demands arise from events occurring prior to the “Close of
Escrow” (as defined in the Agreement). Assignee hereby agrees to indemnify, protect,
defend (with counsel chosen by Assignor) and hold harmless Assignor from and against any
and all liability, loss, cost, damage or expense (including, without limitation,
reasonable attorneys’ fees, costs and expenses) that Assignor may incur under these
Contracts, and from any and all claims and demands whatsoever that may be asserted against
Assignor by reason of any alleged obligation or undertaking on its part to perform or
discharge any of the terms, covenants or agreements contained therein, which claims or
demands arise from events occurring on or after the Close of Escrow. 

EXHIBIT “G”
-1-  

	

        3. By
acceptance of this Assignment, Assignee hereby assumes and agrees to perform and to be
bound by all of the terms, covenants, conditions and obligations imposed upon or assumed
by Assignor under the Contracts. Said assumption will have application only to those
obligations under the Contracts first accruing or arising on or after the Close of Escrow
and shall have no application to obligations accruing or arising prior to said date. 

        4. This
Assignment may be executed in counterparts, each of which will be deemed an original, but
all of which, together, shall constitute one and the same instrument. 

        5. This
Assignment will be binding upon and inure to the benefit of the successors, assigns,
personal representatives, heirs and legatees of the respective parties hereto. 

        6. In
the event of the bringing of any action or suit by a party hereto against another party
hereunder by reason of any breach of any of the covenants, conditions, agreements or
provisions on the part of the other party arising out of this Assignment, then in that
event the prevailing party will be entitled to have and recover of and from the other
party all costs and expenses of the action or suit, including reasonable attorneys’
fees. 

        7. This
Assignment will be governed by, interpreted under, and construed in accordance with the
laws of the State of California. 

[Signature Page
Follows] 

EXHIBIT “G” 
-2-

	

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

		
	“Assignor”		PEGH
      INVESTMENTS, LLC,	 
	  		a
      California limited liability company	 
	 	 	 	 
	  		By:
      __________________________________	 
	    		      Name:
       ______________________	 
	      		      Title:
       _______________________	 
	 	 	 	 
	“Assignee”		THE
      CHEESECAKE FACTORY INCORPORATED,	 
	     		a
      Delaware corporation	 
	 	 	 	 
	       		By:
      _________________________________	 
	         		      Name:
       ______________________	 
	           		      Title:
       _______________________	 

	

[Attach Schedule of
Contracts as Exhibit “1”] 

EXHIBIT “G”
-3- 

 

	

EXHIBIT “H” 

BILL OF SALE  

THIS BILL OF SALE (“Bill of
Sale”) is dated as of _____________, 2004 by THE CHEESECAKE FACTORY INCORPORATED,
a Delaware corporation (“Buyer”), and PEGH INVESTMENTS, LLC, a California
limited liability company (“Seller”). 

W I T N E S S E T H: 

        A. Seller
and Buyer entered into that certain Agreement of Purchase and Sale and Joint Escrow
Instructions dated as of ____________, 2004 (“Agreement”) respecting the
sale of certain “Property” (as defined in the Agreement). 

        B. Under
the Agreement, Seller is obligated to transfer to Buyer any and all of Seller’s
right, title and interest in and to all equipment, appliances, tools, machinery, supplies,
building materials and other personal property of every kind and character owned by Seller
and attached to, appurtenant to, located in or used in connection with the operation of
the “Improvements” (as defined in the Agreement) (collectively, the
“Personal Property”). 

        NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, Seller does hereby absolutely and unconditionally give, grant,
bargain, sell, transfer, set over, assign, convey, release, confirm and deliver to Buyer
all of the Personal Property, including, without limitation, those certain items of
personal property described on Exhibit “1” attached hereto. 

        1. Seller
hereby covenants that Seller will, at any time and from time to time upon written request
therefor, execute and deliver to Buyer, Buyer’s successors, nominees or assigns, such
documents as Buyer or they may reasonably request in order to fully assign and transfer to
and vest the Personal Property in Buyer or Buyer’s successors, nominees and assigns,
and to protect Buyer’s or their right, title and interest in and to all of the
Personal Property and the rights of Seller intended to be transferred and assigned hereby,
or to enable Buyer, Buyer’s successors, nominees and assigns to realize upon or
otherwise enjoy such rights and property. 

        2. Seller
hereby represents and warrants to Buyer that: (i) the Personal Property has been paid
for and is not subject to any liens, encumbrances or claims of any kind, (ii) all
taxes of any nature whatsoever on the Personal Property have been paid by Seller,
(iii) the consideration paid to Seller herewith is the full and complete
consideration for the Personal Property, (iv) any sales or other taxes which may be
payable with respect to this transfer shall be the sole responsibility of Seller, and
(v) the transfer of the Personal Property to Buyer does not require the consent of
third parties except as otherwise disclosed in writing by Seller to Buyer. Such warranties
and representations shall survive the execution and delivery of this Bill of Sale and
Buyer’s subsequent transfer of any of the Personal Property. 

EXHIBIT “H” 
-1-

	

        3. This
Bill of Sale will be binding upon and inure to the benefit of the successors, assigns,
personal representatives, heirs and legatees of Buyer and Seller. 

        4. This
Bill of Sale will be governed by, interpreted under, and construed and enforceable in
accordance with, the laws of the State of California. 

[Signature Page
Follows] 

EXHIBIT “H”
-2- 

	

        IN
WITNESS WHEREOF, Seller has executed and delivered this Bill of Sale as of the date first
written above. 

		
	“Seller”		PEGH
      INVESTMENTS, LLC,	 
			a
      California limited liability company	 
	 	 	 	 
			By:_______________________________	 
			      Name:	 
	  		      Title:	 

	

[Attach Description of
Personal Property
as Exhibit “1”] 

EXHIBIT “H”
-3- 

	

EXHIBIT “I” 

SELLER’S
CERTIFICATE 

FEDERAL FIRPTA
CERTIFICATE 

        To
inform THE CHEESECAKE FACTORY INCORPORATED, a Delaware corporation (the
“Transferee”) that withholding of tax under Section 1445 of the Internal
Revenue Code of 1986, as amended (“Code”) will not be required by
Transferee, upon the transfer of certain real property by PEGH INVESTMENTS, LLC, a
California limited liability company (the “Transferor”) to the
Transferee, the undersigned hereby certifies the following on behalf of the Transferor:  

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

        2.
      The Transferor's U.S. employer or tax identification number is __________. 

            3.
          The Transferor is not a disregarded entity as defined in Section
          1.1445-2(b)(2)(iii) of the Insurance Tax Regulations. 

        The
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 penalty 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 on behalf of the Transferor. 

		
	Dated:
      _________________, 2004		PEGH
      INVESTMENTS, LLC,	 
			a
      California limited liability company	 
		 	 	 
	  		By:
      ____________________________________________	 
	    		Name:
      __________________________________________	 
	      		Title:
      ___________________________________________	 

	

EXHIBIT “I”  

	

EXHIBIT “J” 

GENERAL ASSIGNMENT
AGREEMENT 

        THIS
GENERAL ASSIGNMENT AGREEMENT (“Assignment”), is dated as of
_______________, 2004, by and between PEGH INVESTMENTS, LLC, a California limited
liability company (“Assignor”), and THE CHEESECAKE FACTORY INCORPORATED,
a Delaware corporation (“Assignee”). 

        Assignor
is the owner of that certain land (the “Land”) located in the City of
Calabasas, County of Los Angeles, State of California, more particularly described in
Exhibit “A” attached hereto, and all rights, privileges and
easements appurtenant to the Land (the “Appurtenances”), and all
buildings and other improvements thereon (the “Improvements”). The Land,
the Appurtenances and the Improvements are hereinafter referred to collectively as the
“Real Property.” The Real Property is being conveyed by Assignor to
Assignee pursuant to a grant deed (the “Deed”) of on or about even date
herewith. 

        NOW,
THEREFORE, FOR GOOD AND VALUABLE CONSIDERATION, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto hereby agree as follows: 

        1. Assignor
hereby grants, assigns, transfers, conveys and delivers to Assignee all of Assignor’s
right, title, interest, benefits and privileges in and to the following described property
(collectively, the “Rights”): 

	 	        (a)               All
engineering, consulting, architectural and other similar contracts, and any
               and all amendments and modifications thereto, concerning the design or
               construction of any or all of the Real Property and all warranties with
respect                thereto and to any construction contracts (including all
statutory, express and                implied warranties), including, without limitation
those warranties that are                described in Exhibit “B” attached
hereto;  

	 	        (b)               All
architectural drawings, plans, specifications, soils tests, appraisals,
               engineering reports and similar materials relating to any or all of the
Real                Property;  

	 	        (c)               All
payment and performance bonds or guaranties and any and all modifications
               and extensions thereof relating to the Real Property;  

	 	        (d)               All
governmental entitlements (including, but not limited to, all environmental
               impact reports, negative declarations, map approvals, conditional use
permits,                building permits and certificates of occupancy for the
Improvements),                permissions, environmental clearances, authority to
subdivide the Land, rights,                licenses and permits that relate to all or any
of the Real Property;  

	 	        (e)               All
general intangibles benefiting or relating to the development or use of the
               Real Property, including, without limitation, all names under which or by
which                the Real Property or any portion thereof may at any time be operated
or known,                all rights to carry on business under any such names or any
variant thereof, and                all trademarks and goodwill in any way relating to
the Real Property;  

	

EXHIBIT “J”  

-1-

	 	        (f)               All
refunds and payments of any kind relating to the construction, operation,
               occupancy, use or disposition of any or all of the Real Property; and  

	 	        (g)               All
proceeds and claims arising on account of any damage to or taking of the
               Real Property or any part thereof, and all causes of action and recoveries
for                any loss or diminution in the value of the Real Property.  

	

        2. Assignor
hereby represents and warrants to Assignee that (i) Assignor has not assigned, sold,
mortgaged, pledged or otherwise transferred all or any of Assignor’s right, title or
interest in or to any of the Rights to any party other than Assignee and
(ii) Assignor owns the Rights free and clear from any and all liens, encumbrances and
security interests. 

        3. This
Assignment will be binding upon and inure to the benefit of the successors, assigns,
personal representatives, heirs and legatees of the respective parties hereto. 

        4. In
the event of the bringing of any action or suit by a party hereto against another party
hereunder by reason of any breach of any of the covenants, conditions, agreements or
provisions on the part of the other party arising out of this Assignment, then in that
event the prevailing party will be entitled to have and recover of and from the other
party all costs and expenses of the action or suit, including reasonable attorneys’
fees. 

        5. This
Assignment will be governed by, interpreted under, and enforced and construed in
accordance with the laws of the State of California. 

        6. This
Assignment may be executed in multiple counterparts, each of which shall be deemed an
original, but all of which together shall constitute but one and the same instrument. 

[Signature Page
Follows] 

EXHIBIT “J”

-2-

	

        IN
WITNESS WHEREOF, the parties hereto have executed this instrument as of the date first
hereinabove written. 

		
	“Assignor”		PEGH
      INVESTMENTS, LLC,	 
	  		a
      California limited liability company	 
	 	 	 	 
	  		By:
      __________________________________	 
	    		      Name:
       ______________________	 
	      		      Title:
       _______________________	 
	 	 	 	 
	“Assignee”		THE
      CHEESECAKE FACTORY INCORPORATED,	 
	     		a
      Delaware corporation	 
	 	 	 	 
	       		By:
      _________________________________	 
	         		      Name:
       ______________________	 
	           		      Title:
       _______________________	 

	

EXHIBIT “J”

-3-

	

LEGAL DESCRIPTION OF
THE PROPERTY 

[To Be Provided] 

EXHIBIT “A” to 
                                                   EXHIBIT
“J”  

	

SCHEDULE OF WARRANTIES 

[To Be Provided] 

EXHIBIT “B” to

                                                    EXHIBIT “J”  

	

EXHIBIT “K” 

[RESERVED]  

EXHIBIT “K” 

	

EXHIBIT “L” 

SCHEDULE OF WARRANTIES
FOR THE IMPROVEMENTS TO BE ASSIGNED TO BUYER 

[To Be Provided] 

EXHIBIT “L”Letter Agreement

 Exhibit 10.1 
  
 Sentinel Capital Partners II, L.P. 
 c/o
Sentinel Capital Partners, L.L.C. 
 777 Third Avenue, 32nd Floor 
 New York, New York 10022 
  
 April 25, 2004 
  
 Bright Now! Dental, Inc. 
 201 E. Sandpointe, Suite 200 
 Santa Ana, California 92707 
 Attention: Steven C. Bilt 
  
 Dear Mr. Bilt: 
  
 Reference is hereby made to the Agreement and Plan of Merger, dated as of
April 25, 2004 (the “Merger Agreement”), by and among Bright Now! Dental, Inc., a Delaware corporation (“Parent”), Drawbridge Acquisitions, Inc., a Delaware corporation and a wholly owned subsidiary of Parent
(“Merger Sub”), and Castle Dental Centers, Inc., a Delaware corporation (the “Company”). Defined terms that are used by not defined in this letter agreement (this “Letter Agreement”) shall have the
meanings ascribed thereto in the Merger Agreement. 
  
 Sentinel
Capital Partners II, L.P. (“Sentinel”), a stockholder of the Company, hereby acknowledges that it is a condition to Parent and Merger Sub’s willingness to enter into the Merger Agreement that Parent enter into an agreement with
Sentinel providing for the terms of this Letter Agreement. 
  
 Accordingly, Sentinel hereby agrees that if (a) the Merger Agreement is terminated by the Company pursuant to Section 7.1(c)(i) of the Merger Agreement, and (b) within nine (9) months following the date of such termination, the Company
consummates a transaction resulting from a Takeover Proposal (the “Consummated Transaction”), then in such event, Sentinel shall pay to Parent the Payment Amount (as defined below) within three (3) Business Days following the
receipt by Sentinel of any consideration paid to Sentinel in respect of its shares of the Company as a result of the Consummated Transaction. In such event, the Payment Amount shall be paid by wire transfer of immediately available funds to an
account designated in writing by Parent. 
  
 For purposes of this
Letter Agreement, the “Payment Amount” shall mean the product obtained by multiplying 0.75 by the amount, if any, by which the Consummated Transaction Consideration (as defined below) exceeds the Merger Agreement Consideration (as
defined below), if at all. For purposes of this Letter Agreement, the “Consummated Transaction Consideration” shall mean the product obtained by multiplying (x) the consideration paid per share of Company Common Stock pursuant to
the Consummated Transaction by (y) 132,134,988. For purposes of this Letter Agreement, the “Merger Agreement Consideration” shall mean the product obtained by multiplying (x) the Common Stock Merger Consideration by (y) 132,134,988.

 Without duplication to Section 2.5 of the Merger Agreement, in the event of any stock split, reverse
stock split, stock dividend, reorganization, recapitalization, reclassification or other like change with respect to the Company having a record date on or after the date hereof and prior to the date upon which the Payment Amount would be
determined, an appropriate and proportionate adjustment shall be made to the calculation of the Payment Amount to account for such event. 
  
 As a holder of the Series B Preferred Stock, Sentinel shall not determine to treat the Merger as a “Liquidation Event” (as such term is used in
the certificate of designation of the Series A-1 Preferred Stock) or to receive the “Liquidation Value” (as such term is used in the certificate of designation of the Series B Preferred Stock). 
  
 Other than the obligation of Sentinel to pay the Payment Amount if the
conditions to the payment thereof shall have been satisfied or the obligations of Sentinel set forth in the immediately preceding paragraph, Sentinel shall have no obligation to Parent, Merger Sub or any other Person, and none of Parent, Merger Sub
or any other Person shall have any right to bring any claim or make any demand upon Sentinel, in connection with the subject matter hereof. 
  
 Sentinel represents and warrants to Parent as of the date hereof as follows: 
  
 (a) Sentinel is the beneficial owner (as defined in Rule 13d-3 under the Exchange Act, which definition will apply for all
purposes of this Letter Agreement) of, and has good title to, 63,408 shares of Series B Preferred Stock (the “Sentinel Shares”); 
  
 (b) the Sentinel Shares constitute all of the shares of capital stock of the Company beneficially owned, directly or indirectly, by Sentinel; 

 
 (c) the execution and delivery of this Letter Agreement by Sentinel does
not, and the performance by Sentinel of its obligations hereunder will not, (1) constitute a violation of, conflict with, result in a default (or an event which, with notice or lapse of time or both, would result in a default) under (A) any
judgment, writ, decree, order or ruling directly applicable to Sentinel, or (B) the organizational documents of Sentinel, or (2) require the consent, authorization or approval of, or the provision of notice to, any other party; 
  
 (d) Sentinel has full power and authority to execute, deliver and perform
this Letter Agreement and to consummate the transactions contemplated hereby, and the execution, delivery and performance of this Letter Agreement and the consummation of the transactions contemplated hereby have been duly and validly authorized;
and 
  
 (e) this Letter Agreement has been duly and validly
executed and delivered by Sentinel and, assuming due authorization, execution and delivery by Parent, constitutes a valid and binding agreement of Sentinel, enforceable against Sentinel in accordance with its terms, except to the extent that
enforceability may be limited by (i) applicable insolvency, bankruptcy, reorganization, moratorium or other similar laws affecting creditors’ rights generally, and (ii) applicable equitable principles (whether considered in a proceeding at law
or in equity). 
  
 This Letter Agreement shall be governed by and
construed in accordance with the laws of the State of New York, without giving effect to any choice of law or conflict of law principles 
  

 2 

 thereof or any jurisdiction that would cause the application of the law of any jurisdiction other than the State of New
York. This Letter Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original, but all of which shall constitute one and the same agreement. This Letter Agreement or any counterpart may be executed and
delivered by facsimile copies, each of which shall be deemed an original. 
  
 This Letter Agreement shall terminate automatically upon the earliest of the following events to occur: (a) the termination of the Merger Agreement other than pursuant to Section 7.1(c)(i) thereof, (b) the Closing,
(c) the nine-month anniversary of the termination of the Merger Agreement if a Consummated Transaction shall not have been consummated as of such date, or (d) the date of payment in full of the Payment Amount. 
  
 {Remainder of page intentionally left blank.} 
  

 3 

 If the foregoing is acceptable to you, please sign this Letter Agreement on the appropriate space below,
whereupon this Letter Agreement shall become a binding agreement between the parties hereto. 
  

			
	SENTINEL CAPITAL PARTNERS II, L.P.
		
	By:	 	 Sentinel Partners II, L.P.,
     its General Partner

	By:	 	 Sentinel Managing Company II, LLC,
     its General Partner

		
	 By:
	 	 /s/ David S. Lobel

	 	 	

	 Name:
	 	 David S. Lobel

	 Title:
	 	 Managing Partner

  
 Agreed to and accepted as of 
 the date first written above: 
  

			
	BRIGHT NOW! DENTAL, INC.
		
	By:	 	 /s/ Steven C. Bilt

	 	 	

	 Name:
	 	 Steven C. Bilt

	 Title:
	 	 President and Chief Executive Officer

  

 4

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