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<title>Document</title></head><body><div id="i1a1ea2465c0e4d8d998af081ec8e0982_1"></div><div style="min-height:42.75pt;width:100%"><div><font><br></font></div></div><div style="-sec-extract:summary;text-align:center"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:16pt;font-weight:700;line-height:120%">UNITED STATES </font></div><div style="text-align:center"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:16pt;font-weight:700;line-height:120%">SECURITIES AND EXCHANGE COMMISSION </font></div><div style="text-align:center"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:700;line-height:120%">Washington, D.C. 20549 </font></div><div><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:7pt;font-weight:400;line-height:120%">&#160;</font></div><div style="text-align:center"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:20pt;font-weight:700;line-height:120%">Form 8-K</font></div><div><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:7pt;font-weight:400;line-height:120%">&#160;</font></div><div style="text-align:center"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:14pt;font-weight:700;line-height:120%"> Current Report </font></div><div style="text-align:center"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:14pt;font-weight:700;line-height:120%">Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 </font></div><div><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:120%">&#160;</font></div><div style="text-align:center"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:700;line-height:120%">Date of Report (Date of earliest event reported)&#58;&#160;&#160;October 29, 2020</font></div><div style="text-align:center"><font><br></font></div><div style="text-align:center"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:22pt;font-weight:700;line-height:120%">Griffin Capital Essential Asset REIT, Inc. </font></div><div style="text-align:center"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">(Exact name of registrant as specified in its charter)</font></div><div><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:7pt;font-weight:400;line-height:120%">&#160;</font></div><div style="text-align:center"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:700;line-height:120%">Commission File Number&#58;&#160;&#160;000-55605</font></div><div><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:7pt;font-weight:400;line-height:120%">&#160;</font></div><div style="margin-bottom:5pt;margin-top:5pt;text-align:center"><table style="border-collapse:collapse;display:inline-table;vertical-align:top;width:91.228%"><tr><td style="width:1.0%"></td><td style="width:57.874%"></td><td style="width:0.1%"></td><td style="width:1.0%"></td><td style="width:1.944%"></td><td style="width:0.1%"></td><td style="width:1.0%"></td><td style="width:36.882%"></td><td style="width:0.1%"></td></tr><tr><td colspan="3" style="padding:2px 1pt;text-align:center;vertical-align:bottom"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:100%">Maryland</font></td><td colspan="3" style="padding:2px 1pt;text-align:left;vertical-align:bottom"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:7pt;font-weight:400;line-height:100%">&#160;&#160;</font></td><td colspan="3" style="padding:2px 1pt;text-align:center;vertical-align:bottom"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:100%">46-4654479</font></td></tr><tr><td colspan="3" style="padding:2px 1pt;text-align:left;vertical-align:bottom"><div style="text-align:center"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%">(State or other jurisdiction of</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:100%"> </font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%">incorporation)</font></div></td><td colspan="3" style="padding:2px 1pt;text-align:left;vertical-align:bottom"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:7pt;font-weight:400;line-height:100%">&#160;&#160;</font></td><td colspan="3" style="padding:2px 1pt;text-align:left;vertical-align:bottom"><div style="text-align:center"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%">(IRS Employer</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:100%"> </font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%">Identification No.)</font></div></td></tr></table></div><div><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:7pt;font-weight:400;line-height:120%">&#160;</font></div><div style="text-align:center"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:700;line-height:120%">1520 E. Grand Avenue, El Segundo, CA 90245</font></div><div style="text-align:center"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">(Address of principal executive offices, including zip code)</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:120%"> </font></div><div><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:7pt;font-weight:400;line-height:120%">&#160;</font></div><div style="text-align:center"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:700;line-height:120%">(310) 469-6100 </font></div><div style="text-align:center"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">(Registrant's telephone number, including area code)</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:120%"> </font></div><div style="text-align:center"><font><br></font></div><div style="text-align:center"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:120%">None</font></div><div style="text-align:center"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">(Former name or former address, if changed since last report) </font></div><div><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:7pt;font-weight:400;line-height:120%">&#160;</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:120%"> </font></div><div style="margin-bottom:12pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:120%">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions&#58;</font></div><div><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:120%">&#91;X&#93;&#160;&#160;Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</font></div><div><font><br></font></div><div><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:120%">&#91;&#160;&#160;&#93;&#160;&#160; Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</font></div><div><font><br></font></div><div><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:120%">&#91;&#160;&#160;&#93;&#160;&#160; Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</font></div><div><font><br></font></div><div><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:120%">&#91;&#160;&#160;&#93;&#160;&#160; Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) </font></div><div><font><br></font></div><div style="margin-top:2pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:120%">Securities to be registered pursuant to Section 12(b) of the Act&#58;</font></div><div style="margin-bottom:5pt;margin-top:5pt;text-align:center"><table style="border-collapse:collapse;display:inline-table;vertical-align:top;width:87.719%"><tr><td style="width:1.0%"></td><td style="width:37.733%"></td><td style="width:0.1%"></td><td style="width:1.0%"></td><td style="width:15.566%"></td><td style="width:0.1%"></td><td style="width:1.0%"></td><td style="width:43.401%"></td><td style="width:0.1%"></td></tr><tr><td colspan="3" style="padding:2px 1pt;text-align:center;vertical-align:bottom"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:7.5pt;font-weight:700;line-height:100%">Title of each class</font></td><td colspan="3" style="padding:2px 1pt;text-align:center;vertical-align:bottom"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:7.5pt;font-weight:700;line-height:100%">Trading Symbol(s)</font></td><td colspan="3" style="padding:2px 1pt;text-align:center;vertical-align:bottom"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:7.5pt;font-weight:700;line-height:100%">Name of each exchange on which registered</font></td></tr><tr><td colspan="3" style="padding:2px 1pt;text-align:center;vertical-align:bottom"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:8pt;font-weight:700;line-height:100%;text-decoration:underline">____________________</font></td><td colspan="3" style="padding:2px 1pt;text-align:center;vertical-align:bottom"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:8pt;font-weight:700;line-height:100%;text-decoration:underline">_________________</font></td><td colspan="3" style="padding:2px 1pt;text-align:center;vertical-align:bottom"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:8pt;font-weight:700;line-height:100%;text-decoration:underline">____________________</font></td></tr><tr><td colspan="3" style="padding:2px 1pt;text-align:center;vertical-align:bottom"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%">None</font></td><td colspan="3" style="padding:2px 1pt;text-align:center;vertical-align:bottom"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%">None</font></td><td colspan="3" style="padding:2px 1pt;text-align:center;vertical-align:bottom"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%">None</font></td></tr></table></div><div><font><br></font></div><div><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (&#167;230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (&#167;240.12b-2 of this chapter).</font></div><div><font><br></font></div><div style="margin-bottom:9pt;margin-top:3pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Emerging Growth Company </font><font style="color:#000000;font-family:'Wingdings',sans-serif;font-size:10pt;font-weight:400;line-height:120%">&#168;</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">&#160;&#160; </font></div><div><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:144%">If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. </font><font style="color:#000000;font-family:'Wingdings',sans-serif;font-size:10pt;font-weight:400;line-height:144%">&#168;</font></div><div style="height:42.75pt;position:relative;width:100%"><div style="bottom:0;position:absolute;width:100%"><div><font><br></font></div></div></div><hr style="page-break-after:always"><div style="min-height:42.75pt;width:100%"><div><font><br></font></div></div><div style="margin-bottom:6pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:700;line-height:120%">Item 1.01.&#160;&#160;&#160;&#160;Entry Into a Material Definitive Agreement</font></div><div style="margin-bottom:6pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-style:italic;font-weight:400;line-height:120%">Agreement and Plan of Merger</font></div><div style="margin-bottom:6pt;text-indent:36pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%">On October 29, 2020, Griffin Capital Essential Asset REIT, Inc., a Maryland corporation (the &#34;Registrant&#34;), GRT (Cardinal REIT Merger Sub), LLC, a Maryland limited liability company and a wholly owned subsidiary of the Registrant (&#34;Merger Sub&#34;), Griffin Capital Essential Asset Operating Partnership, L.P., a Delaware limited partnership and a subsidiary of the Registrant (the &#34;GCEAR Operating Partnership&#34;), GRT OP (Cardinal New GP Sub), LLC, a Delaware limited liability company and a wholly owned subsidiary of the GCEAR Operating Partnership (&#34;New GP Sub&#34;), GRT OP (Cardinal LP Merger Sub), LLC, a Delaware limited liability company and a wholly owned subsidiary of the GCEAR Operating Partnership (&#34;LP Merger Sub&#34;), GRT OP (Cardinal OP Merger Sub), LLC, a Delaware limited liability company and a subsidiary of LP Merger Sub and New GP Sub (&#34;OP Merger Sub&#34; and, together with the Registrant, Merger Sub, the GCEAR Operating Partnership, New GP Sub and LP Merger Sub, the &#34;GCEAR Parties&#34;), Cole Office &#38; Industrial REIT (CCIT II), Inc., a Maryland corporation (&#34;CCIT II&#34;), Cole Corporate Income Operating Partnership II, LP, a Delaware limited partnership and a wholly owned subsidiary of CCIT II (the &#34;CCIT II Operating Partnership&#34;), and CRI CCIT II LLC, a Delaware limited liability company and a wholly owned subsidiary of CCIT II (&#34;CCIT II LP&#34; and, together with CCIT II and the CCIT II Operating Partnership, the &#34;CCIT II Parties&#34;), entered into an Agreement and Plan of Merger (the &#34;Merger Agreement&#34;).</font></div><div style="margin-bottom:6pt;text-indent:36pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%">The combined company (the &#34;Combined Company&#34;) following the &#34;Mergers&#34; (as such term is defined herein) will retain the name &#34;Griffin Capital Essential Asset REIT, Inc.&#34; The Combined Company, as of October 29, 2020, would have a total asset value of approximately $5.8 billion, and would own 125 properties in 26 states, consisting of approximately 31 million square feet. On a pro forma basis, as of June 30, 2020, the Combined Company portfolio will be approximately 90% leased, on a weighted average basis, with a remaining weighted average lease term of 7.4 years, approximately 58% of the net rent will come from properties leased to tenants and&#47;or guarantors who have, or whose non-guarantor parent companies have, investment grade or what management believes are generally equivalent ratings, and no tenant will represent more than 3.3% of the 12-month forward net rents of the Combined Company, with the top ten tenants comprising, collectively, approximately 25% of the net rents of the Combined Company.</font></div><div style="margin-bottom:6pt;text-indent:36pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%">Prior to entering</font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> into the</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> Merger</font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> Agreement, CCIT</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> II (a) terminated the Agreement and Plan of Merger, dated as of August 30,</font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> 2020, by and</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> among CCIT II, CIM</font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> Real</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> Estate Finance Trust, Inc. (&#8220;CMFT&#8221;), and Thor II Merger Sub,</font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> LLC,</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> a</font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> </font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%">wholly owned subsidiary of CMFT (as amended, the &#34;CMFT Merger Agreement&#34;), in accordance with Section 9.1(c)(ii) of the CMFT Merger Agreement,</font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> and (b)</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> paid to</font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> CMFT</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> the termination fee equal to $7,380,000 in accordance with the</font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> CMFT Merger</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> Agreement, and will pay to CMFT the amount of CMFT&#8217;s Expenses (as defined in the CMFT Merger Agreement), up to $3,690,000, required to be paid pursuant to the terms of the CMFT Merger Agreement (such amounts together, the &#8220;CMFT Termination Payment&#8221;).</font></div><div style="margin-bottom:6pt;text-indent:36pt"><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%">Subject to the terms and conditions of the</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> Merger Agreement, at the Closing (as defined in the Merger Agreement) (i) CCIT II will merge with and into Merger Sub (the &#8220;REIT Merger&#8221;), with Merger Sub being the surviving entity, (ii) OP Merger Sub will merge with and into CCIT II Operating Partnership (the &#8220;Partnership Merger&#8221;), with the CCIT II Operating Partnership being the surviving entity and (iii) CCIT II LP will merge with and into LP Merger Sub (the &#8220;LP Merger&#8221; and, together with the REIT Merger and the Partnership Merger, the &#8220;Mergers&#8221;) with LP Merger Sub being the surviving entity.</font></div><div style="margin-bottom:6pt;text-indent:36pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%">At the effective time of the REIT Merger and subject to the terms and conditions of the Merger Agreement, each issued and outstanding share of CCIT II&#8217;s Class A common stock, $0.01 par value per share (&#8220;CCIT II Class A Common Stock&#8221;), and Class T common stock, $0.01 par value per share (&#8220;CCIT II Class T Common Stock&#8221; and together with the CCIT II Class A Common Stock, &#34;CCIT II Common Stock&#34;), will be converted into the right to receive 1.392 shares of the Registrant's Class E common stock, $0.001 par value per share (&#34;Class E Common Stock&#34;), subject to the treatment of fractional shares in accordance with the Merger Agreement (the &#34;REIT Merger Consideration&#34;). At the effective time of the REIT Merger and subject to the terms and conditions of the Merger Agreement, each issued and outstanding share of CCIT II Class A Common Stock granted under CCIT II&#8217;s 2018 Equity Incentive Plan, whether vested or unvested, will be cancelled in exchange for an amount equal to the REIT Merger Consideration.</font></div><div style="height:42.75pt;position:relative;width:100%"><div style="bottom:0;position:absolute;width:100%"><div><font><br></font></div></div></div><hr style="page-break-after:always"><div style="min-height:42.75pt;width:100%"><div><font><br></font></div></div><div style="margin-bottom:6pt;text-indent:36pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%">At the effective time of the Partnership Merger and subject to the terms and conditions of the Merger Agreement, (i) each issued and outstanding partnership unit of the CCIT II Operating Partnership (&#8220;CCIT II Operating Partnership Units&#8221;) held by CCIT II will be converted into the right to receive 1.392 shares of the GCEAR Operating Partnership&#8217;s Class E Units, subject to the treatment of fractional units in accordance with the Merger Agreement, and CCIT II will be admitted as a limited partner of the GCEAR Operating Partnership and (ii) each issued and outstanding CCIT II Operating Partnership Unit held by CCIT II LP will automatically be cancelled and cease to exist, and no consideration shall be paid, in connection with or as a consequence of the Partnership Merger.</font></div><div style="margin-bottom:6pt;text-indent:36pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%">At the effective time of the LP Merger and subject to the terms and conditions of the Merger Agreement, all of the issued and outstanding limited liability company interests in CCIT II LP will automatically be cancelled and cease to exist, and no consideration shall be paid, in connection with or as a consequence of the LP Merger.</font></div><div style="margin-bottom:6pt;text-indent:36pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%">For U.S. federal income tax purposes, it is intended that (i) the REIT Merger shall qualify as a &#8220;reorganization&#8221; under, and within the meaning of, Section 368(a) of the Internal Revenue Code of 1986, as amended (the &#34;Code&#34;), and the Merger Agreement is intended to be adopted as a &#8220;plan of reorganization&#8221; for purposes of Sections 354 and 361 of the Code and (ii) the Partnership Merger and the LP Merger together shall be treated as a contribution by CCIT II of all of its assets, subject to all of its liabilities, to the GCEAR Operating Partnership in exchange for partnership interests of the GCEAR Operating Partnership pursuant to Section 721 of the Code.</font></div><div style="margin-bottom:6pt;text-indent:36pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%">The Merger Agreement contains customary representations,</font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> warranties</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> and covenants, including</font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> covenants </font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%">relating to the conduct of the Registrant's and CCIT II's respective</font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> businesses</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> during</font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> the</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> period between</font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> the </font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%">execution of the Merger Agreement and the completion of the Mergers,</font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> subject</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> to</font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> certain</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> exceptions. The Merger Agreement also contains a representation and warranty on behalf of CCIT II that, prior to entering into the Merger Agreement, CCIT II terminated the CMFT Merger Agreement (and paid CMFT the CMFT Termination Payment) and entered into the Merger Agreement in compliance with the terms of the CMFT Merger Agreement.</font></div><div style="margin-bottom:6pt;text-indent:36pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%">Pursuant to the terms of the Merger Agreement, CCIT II and its subsidiaries and</font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> representatives may</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> not solicit, provide information or enter into discussions concerning proposals relating to</font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> alternative</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> business combination transactions, subject to certain limited exceptions set forth in the Merger Agreement. </font></div><div style="margin-bottom:6pt;text-indent:36pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%">The Merger Agreement also provides</font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> that prior to</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> the Stockholder Approval (as defined herein), CCIT II's board</font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> of directors may, under specified</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> </font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%">circumstances,</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> make an Adverse Recommendation Change (as defined</font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> in the Merger Agreement), including withdrawing its recommendation of the REIT Merger,</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> subject</font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> to</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> complying with certain conditions set forth in the Merger Agreement.</font></div><div style="margin-bottom:6pt;text-indent:36pt"><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%">The Merger Agreement may</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> be</font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> terminated</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> under certain circumstances, including but not limited to, by either</font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> the</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> Registrant or CCIT</font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> II if the</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> Mergers</font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> have</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> not been consummated on or before 11&#58;59 p.m. New York time</font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> on May</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> 30, 2021 (the</font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> &#34;Outside</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> Date&#34;), if a final and non-appealable order is entered permanently restraining or otherwise prohibiting the</font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> transactions</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> contemplated by the Merger Agreement, if the Stockholder Approval has not been obtained at the meeting of CCIT II&#8217;s stockholders to be called to consider the REIT Merger </font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%">or</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> upon a material uncured breach of the respective obligations, covenants or agreements by</font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> the other party that</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> would cause the closing conditions in the Merger Agreement not to be satisfied.</font></div><div style="margin-bottom:6pt;text-indent:36pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%">In addition,</font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> CCIT II</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> may terminate the Merger Agreement in order to enter into an &#34;Alternative Acquisition Agreement&#34; with respect to a &#34;Superior Proposal&#34; (each as defined in the Merger Agreement) at any time prior to receipt by CCIT II of the Stockholder Approval pursuant to and subject to the terms and conditions of the Merger Agreement.</font></div><div style="margin-bottom:6pt;text-indent:36pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%">The Registrant may terminate the Merger Agreement, in certain limited circumstances, prior to the receipt of the Stockholder Approval, including upon (i) an Adverse Recommendation Change, (ii) a tender offer or exchange offer that is commenced which CCIT II's board of directors fails to recommend against or (iii) a breach by CCIT II, in any material respect, of its obligations under the no solicitation provisions set forth in the Merger Agreement.</font></div><div style="margin-bottom:6pt;text-indent:36pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%">If the Merger Agreement is terminated because the Mergers were not consummated before the Outside Date or because the Stockholder Approval was not obtained, and (i) an &#34;Acquisition Proposal&#34; (as defined in the Merger </font></div><div style="height:42.75pt;position:relative;width:100%"><div style="bottom:0;position:absolute;width:100%"><div><font><br></font></div></div></div><hr style="page-break-after:always"><div style="min-height:42.75pt;width:100%"><div><font><br></font></div></div><div style="margin-bottom:6pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%">Agreement) has been publicly announced or otherwise communicated to CCIT II's stockholders prior to the Stockholders Meeting (as defined in the Merger Agreement), and (ii) within 12 months after the date of such termination (A) CCIT II consummates or enters into an agreement (that is thereafter consummated) in respect of an Acquisition Proposal for 50% or more of CCIT II&#8217;s equity or assets or (B) the board of directors of CCIT II recommends or fails to recommend against an Acquisition Proposal structured as a tender or exchange offer for 50% or more of CCIT II&#8217;s equity and such Acquisition Proposal is actually consummated, then CCIT II must pay the Registrant a termination fee of $18,450,000 and up to $3,690,000 as reimbursement for the Registrant's Expenses (as defined in the Merger Agreement).</font></div><div style="margin-bottom:6pt;text-indent:36pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%">If the Merger Agreement is terminated in connection with CCIT II&#8217;s acceptance</font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> of a</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> Superior Proposal or making an Adverse Recommendation Change, then CCIT II must pay to the Registrant</font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> a termination</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> fee of $18,450,000 and up to $3,690,000 as reimbursement for the Registrant's Expenses.</font></div><div style="margin-bottom:6pt;text-indent:36pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%">If the Merger Agreement is terminated because any breach of any representation or warranty or failure to perform or comply with any obligation, covenant or agreement on the part of any of the CCIT II Parties set forth in the Merger Agreement has occurred that would cause any of the closing conditions not to be satisfied, then CCIT II must pay to the Registrant up to $3,690,000 as reimbursement for the Registrant&#8217;s Expenses.</font></div><div style="margin-bottom:6pt;text-indent:36pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%">If the Merger Agreement is terminated because any breach of any representation or warranty or failure to perform or comply with any obligation, covenant or agreement on the part of any of the GCEAR Parties set forth in the Merger Agreement has occurred that would cause any of the closing conditions not to be satisfied, then the Registrant must pay to CCIT II (i) an amount equal to the CMFT Termination Payment and (ii) $3,690,000 as reimbursement for CCIT II&#8217;s Expenses.</font></div><div style="margin-bottom:6pt;text-indent:36pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%">The obligation of each party to consummate the Mergers is</font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> subject to a number</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> of customary conditions, including receipt of the approval of the REIT Merger (and of an amendment to CCIT II&#8217;s charter that is required to consummate the REIT Merger) by holders of a majority of the outstanding shares of the CCIT II Common Stock entitled to vote thereon (the &#8220;Stockholder Approval&#8221;), delivery of certain documents and legal opinions, the truth and correctness of the representations</font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> and</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> warranties of the</font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> parties</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> (subject to the materiality standards contained in the Merger Agreement), the</font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> effectiveness of</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> the registration</font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> statement</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> on Form S-4 to be filed by the Registrant to register the shares of the Class</font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> E Common Stock to</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> be issued</font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> as consideration in the REIT</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> Merger, and the absence of a CCIT II Material Adverse</font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> Effect</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> or GCEAR Material Adverse Effect (as each term is defined in the Merger Agreement).</font></div><div style="margin-bottom:6pt;text-indent:36pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%">The Registrant's obligation to consummate the</font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> Mergers</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> is</font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> not subject to a</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> financing condition. Until the effective time of the REIT Merger, each of the Registrant and</font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> CCIT</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> II</font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> are</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> permitted</font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> to</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> declare and pay distributions in an amount less than or equal to an annual</font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> rate of</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> five percent</font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> of</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> its net asset value as of June 30, 2020, ratably over the calendar year.</font></div><div style="margin-bottom:6pt;text-indent:36pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%">The Merger Agreement provides that the Registrant's board</font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> of directors will</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> take such action as necessary to cause three (3) Independent Directors (as </font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%">defined in the</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> charters of each of CCIT</font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> II</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> and the Registrant) serving as members of the</font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> board of directors of CCIT II</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> to be elected to the Registrant's</font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> board</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> of</font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> directors</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> effective as</font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> of the</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> effective time of the REIT Merger to serve </font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%">until the</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> next annual meeting of stockholders of the Registrant. In connection</font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> with such</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> next</font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> annual meeting</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> of stockholders of the Registrant, the Nominating and Corporate Governance Committee</font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> of the Registrant will recommend</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> to the Registrant's board of directors at least one (1) of such CCIT directors</font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> for election</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> to</font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> the Registrant's</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> board of directors at such annual meeting of stockholders.</font></div><div style="margin-bottom:6pt;text-indent:36pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%">The foregoing</font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> description</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> of the</font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> Merger</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> Agreement</font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> is only a</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> summary, does not purport to be complete and is qualified in its entirety</font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> by reference</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> to the</font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> full</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> text of the</font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> Merger</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> Agreement, which is filed as Exhibit 2.1 to this Current Report on Form 8-K and is incorporated herein by reference.</font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> A copy of the Merger</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> Agreement has been included to provide stockholders with information regarding its terms and conditions, </font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%">and is not intended to provide</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> any factual information about the Registrant or CCIT II. The representations,</font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> warranties and covenants</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> contained in the Merger Agreement have been made solely for the benefit of the</font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> parties to the Merger Agreement,</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> and are not intended as statements of fact to be relied upon by the Registrant&#8217;s</font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> stockholders, but rather</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> as a</font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> way of</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> allocating the risk between the parties to the Merger Agreement in the event</font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> the</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> statements therein</font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> prove</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> to be</font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> inaccurate.</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> Statements made in the Merger Agreement have been modified</font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> or</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> qualified by certain confidential disclosures that were made between the parties in connection with the negotiation</font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> of the</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> Merger Agreement, which disclosures are </font></div><div style="height:42.75pt;position:relative;width:100%"><div style="bottom:0;position:absolute;width:100%"><div><font><br></font></div></div></div><hr style="page-break-after:always"><div style="min-height:42.75pt;width:100%"><div><font><br></font></div></div><div style="margin-bottom:6pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%">not reflected in the Merger Agreement attached hereto. Moreover,</font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> such</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> statements may</font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> no</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> longer be true as of a given date and may apply standards of materiality in a way that is different</font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> from</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> what may</font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> be</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> viewed as material by stockholders. Accordingly, stockholders should not rely on the representations,</font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> warranties and</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> covenants or any descriptions thereof as characterizations of the actual state of facts or condition of</font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> the Registrant</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> or CCIT II. Moreover, information concerning the subject matter of the representations and</font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> warranties</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> may change after the date of the Merger Agreement, which subsequent information may or may not be fully reflected in the Registrant&#8217;s public disclosures. The Registrant acknowledges that, notwithstanding the inclusion of the foregoing cautionary statements, it is responsible for considering whether additional specific disclosures of material information regarding material contractual provisions are required to make the statements in this Current Report on Form 8-K not misleading.</font></div><div style="margin-bottom:6pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-style:italic;font-weight:400;line-height:120%">Termination Agreement</font></div><div style="margin-bottom:6pt;text-indent:36pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%">Concurrently with the entry into the Merger Agreement, the Registrant, CCIT II and Cole Corporate Income Management II, LLC (the &#8220;CCIT II Advisor&#8221;) entered into a letter agreement (the &#8220;Termination Agreement&#8221;). Pursuant to the Termination Agreement, the Advisory Agreement, dated as of August 27, 2013, by and between CCIT II and the CCIT II Advisor (as amended, the &#8220;CCIT II Advisory Agreement&#8221;) will be terminated upon consummation of the Mergers. Pursuant to the Termination Agreement, (i) upon consummation of the Mergers or (ii) termination of the CCIT II Advisory Agreement, if such termination occurs prior to the earlier of the consummation of the Mergers and June 30, 2021, for certain reasons other than a material breach of the CCIT II Advisory Agreement by the CCIT II Advisor, CCIT II will pay the CCIT II Advisor the &#8220;Subordinated Performance Fee&#8221; (as defined in the CCIT II Advisory Agreement) in an amount equal to $26,688,591 and the &#8220;Disposition Fee&#8221; (as defined in the CCIT II Advisory Agreement) in an amount equal to $1,750,000. The Termination Agreement also provides that the CCIT II Advisor will not terminate the CCIT II Advisory Agreement with effect prior to the earlier of the consummation of the Mergers and June 30, 2021, other than in the event of material breach of the CCIT II Advisory Agreement by CCIT II. In the event that the Merger Agreement is terminated in accordance with its terms, the Termination Agreement will be automatically terminated.</font></div><div style="margin-bottom:6pt;text-indent:36pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%">The foregoing description of the Termination Agreement is only a summary, does not purport to be complete and is qualified in its entirety by reference to the full text of the Termination Agreement, which is filed as Exhibit 10.1 to this Current Report on Form 8-K and is incorporated herein by reference.  </font></div><div style="margin-bottom:6pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:700;line-height:120%">Item 7.01.&#160;&#160;&#160;&#160;Regulation FD Disclosure</font></div><div style="margin-bottom:6pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-style:italic;font-weight:400;line-height:120%">Joint Press Release and Investor Presentation</font></div><div style="margin-bottom:6pt;text-indent:36pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%">On November 2, 2020, the Registrant and CCIT II issued a joint press release announcing the execution of the Merger Agreement as described in detail in Item 1.01 above. A copy of the press release is attached hereto as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein solely for purposes of this Item 7.01 disclosure.</font></div><div style="margin-bottom:6pt;text-indent:36pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%">In addition, on November 2, 2020, the Registrant posted to its website (</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-style:italic;font-weight:400;line-height:120%">www.gcear.com</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%">) an investor presentation prepared by the Registrant containing certain information related to the proposed Mergers. A copy of the investor presentation is filed as Exhibit 99.2 to this Current Report on Form 8-K</font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> and</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> is incorporated herein solely for purposes of this Item 7.01 disclosure.</font></div><div style="margin-bottom:6pt;text-indent:36pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%">Pursuant to the rules and regulations of the Securities and Exchange Commission </font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%">(the </font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%">&#8220;SEC&#8221;), the information in this Item 7.01 disclosure, including Exhibits 99.1 and 99.2 and </font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%">information set forth </font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%">therein, is deemed to have been furnished and shall not be deemed to be &#8220;filed&#8221; under the </font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%">Securities Exchange </font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%">Act of 1934, as amended.</font></div><div style="margin-bottom:6pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:700;line-height:120%">Item 8.01.&#160;&#160;&#160;&#160;Other Events</font></div><div style="margin-bottom:6pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-style:italic;font-weight:400;line-height:120%">November 2020 Distribution Declaration</font></div><div style="margin-bottom:6pt;text-indent:36pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%">On&#160;October 19, 2020, the Registrant&#8217;s board of directors declared an all-cash distribution rate based on 366 days in the calendar year, of&#160;$0.000956284&#160;per day ($0.35 per share annualized), subject to adjustments for class-specific expenses, per Class E share, Class T share, Class S share, Class D share, Class I share, Class A share, Class AA share and Class AAA share of common stock, for stockholders of record at the close of each business day for </font></div><div style="height:42.75pt;position:relative;width:100%"><div style="bottom:0;position:absolute;width:100%"><div><font><br></font></div></div></div><hr style="page-break-after:always"><div style="min-height:42.75pt;width:100%"><div><font><br></font></div></div><div style="margin-bottom:6pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%">the period commencing on November 1, 2020 and ending on November 30, 2020. The Registrant will pay such distributions to each stockholder of record at such time in December 2020 as determined by the Registrant's Chief Executive Officer.</font></div><div style="margin-bottom:6pt;text-align:center;text-indent:36pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:700;line-height:120%">ADDITIONAL INFORMATION ABOUT THE MERGERS</font></div><div style="margin-bottom:6pt;text-indent:36pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%">In connection with the proposed Mergers, the Registrant intends to file a registration statement on Form S-4 with the SEC that will include a proxy statement of CCIT II and will also constitute a prospectus of the Registrant. This communication is not a substitute for the registration statement, the proxy statement&#47;prospectus or any other documents that will be made available to the stockholders of CCIT II. In connection with the proposed Mergers, the Registrant and CCIT II also plan to file relevant materials with the SEC. STOCKHOLDERS OF CCIT II ARE URGED TO READ ALL RELEVANT DOCUMENTS FILED WITH THE SEC, INCLUDING THE RELEVANT PROXY STATEMENT&#47;PROSPECTUS, WHEN THEY BECOME AVAILABLE, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED MERGERS. A definitive proxy statement&#47;prospectus will be sent to CCIT II&#8217;s stockholders. Investors may obtain a copy of the proxy statement&#47;prospectus (if and when it becomes available) and other relevant documents filed by the Registrant and CCIT II free of charge at the SEC&#8217;s website, www.sec.gov. Copies of the documents filed by the Registrant with the SEC will be available free of charge on the Registrant&#8217;s website at http&#58;&#47;&#47;www.gcear.com or by contacting the Registrant&#8217;s Investor Services at (888) 926-2688, as they become available. Copies of the documents filed by CCIT II with the SEC will be available free of charge on CIM&#8217;s website, at https&#58;&#47;&#47;www.cimgroup.com&#47;investment-strategies&#47;individual&#47;for-shareholders, as they become available. </font></div><div style="margin-bottom:6pt;text-align:center;text-indent:36pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:700;line-height:120%">PARTICIPANTS IN SOLICITATION RELATING TO THE MERGERS</font></div><div style="margin-bottom:6pt;text-indent:36pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%">CCIT II, the Registrant and their respective directors and executive officers and other members of management and employees, as well as certain affiliates of CIM Group, LLC serving as CCIT II&#8217;s external advisor, may be deemed to be participants in the solicitation of proxies from CCIT II stockholders in respect of the proposed Mergers among the Registrant, CCIT II and their respective subsidiaries. Information regarding the directors, executive officers and external advisor of CCIT II is contained in the Annual Report on Form 10-K for the year ended December 31, 2019 filed with the SEC on March 30, 2020, as amended on April 27, 2020. Information about directors and executive officers of the Registrant is available in the proxy statement for its 2020 annual meeting of stockholders, which was filed with the SEC on April 15, 2020.  Other information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the proxy statement&#47;prospectus and other relevant materials filed with the SEC regarding the proposed Mergers when they become available.  Stockholders of CCIT II should read the proxy statement&#47;prospectus carefully when it becomes available before making any voting or investment decisions.  Investors may obtain free copies of these documents from the Registrant or CCIT II using the sources indicated above.</font></div><div style="margin-bottom:6pt;text-align:center;text-indent:36pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:700;line-height:120%">NO OFFER OR SOLICITATION</font></div><div style="margin-bottom:6pt;text-indent:36pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%">This communication and the information contained herein does not constitute an offer to sell or the solicitation of an offer to buy or sell any securities or a solicitation of a proxy or of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended. This communication may be deemed to be solicitation material in respect of the proposed Mergers.</font></div><div style="margin-bottom:6pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:700;line-height:120%">Disclaimer on</font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:700;line-height:120%"> Forward-Looking</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:700;line-height:120%"> Statements</font></div><div style="margin-bottom:6pt;text-indent:36pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%">This Current</font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> Report on</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> Form 8-K contains statements that constitute forward-looking statements within the meaning of Section</font><font style="color:#0b0b0b;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> 27A</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%"> of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements can generally be identified as forward-looking because they include words such as &#8220;believes,&#8221; &#8220;anticipates,&#8221; &#8220;expects,&#8221; &#8220;would,&#8221; &#8220;could,&#8221; or words of similar meaning.  Statements that describe future plans and objectives are also forward-looking statements. These statements are based on the Registrant's and&#47;or CCIT II's current expectations and beliefs and are subject to a number of trends and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements&#59; the Registrant can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from the Registrant&#8217;s expectations include, but are not limited to, the risk that the Mergers will not be consummated within </font></div><div style="height:42.75pt;position:relative;width:100%"><div style="bottom:0;position:absolute;width:100%"><div><font><br></font></div></div></div><hr style="page-break-after:always"><div style="min-height:42.75pt;width:100%"><div><font><br></font></div></div><div style="margin-bottom:6pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%">the expected time period or at all&#59; the occurrence of any event, change or other circumstance that could give rise to the termination of the Merger Agreement&#59; the failure to satisfy the conditions to the consummation of the proposed Mergers, including the approval of the stockholders of CCIT II&#59; statements about the benefits of the proposed transaction involving the Registrant and CCIT II and statements that address operating performance, events or developments that the Registrant expects or anticipates will occur in the future, including but not limited to statements regarding anticipated synergies and G&#38;A savings, future financial and operating results, plans, objectives, expectations and intentions, expected sources of financing, anticipated asset dispositions, anticipated leadership and governance, creation of value for stockholders, benefits of the proposed transaction to customers, employees, stockholders and other constituents of the combined company, the integration of the Registrant and CCIT II, cost savings and the expected timetable for completing the proposed transaction, and other non-historical statements&#59; risks related to the disruption of management&#8217;s attention from ongoing business operations due to the proposed Mergers&#59; the availability of suitable investment or disposition opportunities&#59; changes in interest rates&#59; the availability and terms of financing&#59; the impact of the COVID-19 pandemic on the operations and financial condition of each of the Registrant and CCIT II and the real estate industries in which they operate, including with respect to occupancy rates, rent deferrals and the financial condition of their respective tenants&#59; general financial and economic conditions, which may be affected by government responses to the COVID-19 pandemic&#59; market conditions&#59; legislative and regulatory changes that could adversely affect the business of the Registrant or CCIT II&#59; and other factors, including those set forth in the section entitled &#8220;Risk Factors&#8221; in the Registrant&#8217;s and CCIT II&#8217;s most recent Annual Reports on Form 10-K, as amended, and Quarterly Reports on Form 10-Q filed with the SEC, and other reports filed by the Registrant and CCIT II with the SEC, copies of which are available on the SEC&#8217;s website, www.sec.gov. Forward-looking statements are not guarantees of performance or results and speak only as of the date such statements are made. Except as required by law, neither the Registrant nor CCIT II undertakes any obligation to update or revise any forward-looking statement in this communication, whether to reflect new information, future events, changes in assumptions or circumstances or otherwise.</font></div><div style="margin-bottom:6pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:700;line-height:120%">Item 9.01.&#160; Financial Statements and Exhibits</font></div><div style="margin-bottom:6pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:700;line-height:120%">(d) Exhibits</font></div><div style="margin-bottom:6pt;text-align:center"><table style="border-collapse:collapse;display:inline-table;vertical-align:top;width:91.081%"><tr><td style="width:1.0%"></td><td style="width:8.691%"></td><td style="width:0.1%"></td><td style="width:0.1%"></td><td style="width:1.886%"></td><td style="width:0.1%"></td><td style="width:1.0%"></td><td style="width:87.023%"></td><td style="width:0.1%"></td></tr><tr><td colspan="3" style="padding:2px 1pt;text-align:center;vertical-align:bottom"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:700;line-height:100%">Exhibit No.</font></td><td colspan="3" style="padding:0 1pt"></td><td colspan="3" style="padding:2px 1pt;text-align:left;vertical-align:bottom"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:700;line-height:100%">Description</font></td></tr><tr><td colspan="3" style="border-top:1pt solid #000;padding:2px 1pt;text-align:left;vertical-align:top"><div><font style="color:#0000ff;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:100%;text-decoration:underline"><a href="projectcardinal-mergerag.htm" style="-sec-extract:exhibit;color:#0000ff;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:100%;text-decoration:underline">2.1</a></font></div></td><td colspan="3" style="padding:0 1pt"></td><td colspan="3" style="border-top:1pt solid #000;padding:2px 1pt;text-align:left;vertical-align:top"><div><font style="color:#0000ff;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:115%;text-decoration:underline"><a href="projectcardinal-mergerag.htm" style="-sec-extract:exhibit;color:#0000ff;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:115%;text-decoration:underline">Agreement and Plan of Merger, dated as of October 29, 2020, by and among Griffin Capital Essential Asset REIT, Inc., GRT (Cardinal REIT Merger Sub), LLC, Griffin Capital Essential Asset Operating Partnership, L.P., GRT OP (Cardinal New GP Sub), LLC, GRT OP (Cardinal LP Merger Sub), LLC, GRT OP (Cardinal OP Merger Sub), LLC, Cole Office &#38; Industrial REIT (CCIT II), Inc., Cole Corporate Income Operating Partnership II, LP and CRI CCIT II LLC*</a></font></div></td></tr><tr><td colspan="3" style="padding:2px 1pt;text-align:left;vertical-align:top"><div><font style="color:#0000ff;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:100%;text-decoration:underline"><a href="cardinal-terminationag.htm" style="-sec-extract:exhibit;color:#0000ff;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:100%;text-decoration:underline">10.1</a></font></div></td><td colspan="3" style="padding:0 1pt"></td><td colspan="3" style="padding:2px 1pt;text-align:left;vertical-align:top"><div><font style="color:#0000ff;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:115%;text-decoration:underline"><a href="cardinal-terminationag.htm" style="-sec-extract:exhibit;color:#0000ff;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:115%;text-decoration:underline">Termination Letter Agreement, dated as of October 29, 2020, by and among Cole Office &#38; Industrial REIT (CCIT II), Inc. and Cole Corporate Income Management II, LLC*</a></font></div></td></tr><tr><td colspan="3" style="padding:2px 1pt;text-align:left;vertical-align:top"><div><font style="color:#0000ff;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:100%;text-decoration:underline"><a href="gcearmergerannouncemen.htm" style="-sec-extract:exhibit;color:#0000ff;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:100%;text-decoration:underline">99.1</a></font></div></td><td colspan="3" style="padding:0 1pt"></td><td colspan="3" style="padding:2px 1pt;text-align:left;vertical-align:bottom"><div><font style="color:#0000ff;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:100%;text-decoration:underline"><a href="gcearmergerannouncemen.htm" style="-sec-extract:exhibit;color:#0000ff;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:100%;text-decoration:underline">Joint Press Release dated November 2, 2020</a></font></div></td></tr><tr><td colspan="3" style="padding:2px 1pt;text-align:left;vertical-align:top"><div><font style="color:#0000ff;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:100%;text-decoration:underline"><a href="gcearannouncementpresent.htm" style="-sec-extract:exhibit;color:#0000ff;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:100%;text-decoration:underline">99.2</a></font></div></td><td colspan="3" style="padding:0 1pt"></td><td colspan="3" style="padding:2px 1pt;text-align:left;vertical-align:bottom"><div><font style="color:#0000ff;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:100%;text-decoration:underline"><a href="gcearannouncementpresent.htm" style="-sec-extract:exhibit;color:#0000ff;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:100%;text-decoration:underline">Investor Presentation dated November 2, 2020</a></font></div></td></tr></table></div><div style="margin-bottom:6pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:700;line-height:120%">________________ </font></div><div style="margin-bottom:6pt;text-align:center"><table style="border-collapse:collapse;display:inline-table;vertical-align:top;width:91.228%"><tr><td style="width:1.0%"></td><td style="width:2.265%"></td><td style="width:0.1%"></td><td style="width:1.0%"></td><td style="width:95.535%"></td><td style="width:0.1%"></td></tr><tr><td colspan="3" style="padding:2px 1pt;text-align:left;vertical-align:bottom"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:100%">*</font></td><td colspan="3" style="padding:2px 1pt;text-align:left;vertical-align:bottom"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:100%">Schedules and exhibits omitted pursuant to Item 601(b)(2) of Regulation S-K. The Registrant agrees to furnish a supplemental copy of any omitted schedule or exhibit to the SEC upon request.</font></td></tr></table></div><div style="height:42.75pt;position:relative;width:100%"><div style="bottom:0;position:absolute;width:100%"><div><font><br></font></div></div></div><hr style="page-break-after:always"><div style="min-height:42.75pt;width:100%"><div><font><br></font></div></div><div style="text-align:center"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:700;line-height:120%">Signature(s) </font></div><div><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%">&#160;</font></div><div style="text-indent:24.75pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%">&#160;&#160;&#160;&#160;Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. </font></div><div style="margin-bottom:5pt;margin-top:5pt;text-align:center"><table style="border-collapse:collapse;display:inline-table;vertical-align:top;width:480.00pt"><tr><td style="width:1.0pt"></td><td style="width:214.00pt"></td><td style="width:1.0pt"></td><td style="width:1.0pt"></td><td style="width:36.25pt"></td><td style="width:1.0pt"></td><td style="width:1.0pt"></td><td style="width:223.75pt"></td><td style="width:1.0pt"></td></tr><tr style="height:15pt"><td colspan="3" style="padding:0 1pt"></td><td colspan="3" style="padding:0 1pt"></td><td colspan="3" style="padding:2px 1pt;text-align:left;vertical-align:bottom"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:700;line-height:100%">Griffin Capital Essential Asset REIT, Inc.</font></td></tr><tr style="height:15pt"><td colspan="3" style="padding:0 1pt"></td><td colspan="3" style="padding:0 1pt"></td><td colspan="3" style="padding:0 1pt"></td></tr><tr style="height:15pt"><td colspan="3" style="padding:2px 1pt;text-align:left;vertical-align:bottom"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:100%">Date&#58;  November 2, 2020</font></td><td colspan="3" style="padding:2px 1pt;text-align:right;vertical-align:bottom"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:100%">By&#58;</font></td><td colspan="3" style="padding:2px 1pt;text-align:left;vertical-align:bottom"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:100%">&#47;s&#47; Javier F. Bitar</font></td></tr><tr style="height:15pt"><td colspan="3" style="padding:0 1pt"></td><td colspan="3" style="padding:0 1pt"></td><td colspan="3" style="border-top:1pt solid #000000;padding:2px 1pt;text-align:left;vertical-align:bottom"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:100%">Javier F. Bitar</font></td></tr><tr style="height:15pt"><td colspan="3" style="padding:0 1pt"></td><td colspan="3" style="padding:0 1pt"></td><td colspan="3" style="padding:2px 1pt;text-align:left;vertical-align:bottom"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:100%">Chief Financial Officer and Treasurer</font></td></tr></table></div><div style="height:42.75pt;position:relative;width:100%"><div style="bottom:0;position:absolute;width:100%"><div><font><br></font></div></div></div></body></html>
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Document
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
Current Report
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):  October 29, 2020
Griffin Capital Essential Asset REIT, Inc.
(Exact name of registrant as specified in its charter)
Commission File Number:  000-55605
Maryland
46-4654479
(State or other jurisdiction of
incorporation)
(IRS Employer
Identification No.)
1520 E. Grand Avenue, El Segundo, CA 90245
(Address of principal executive offices, including zip code)
(310) 469-6100
(Registrant's telephone number, including area code)
None
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
[X]  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[  ]   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[  ]   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[  ]   Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities to be registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
____________________
_________________
____________________
None
None
None
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging Growth Company
¨
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
¨
Item 1.01.    Entry Into a Material Definitive Agreement
Agreement and Plan of Merger
On October 29, 2020, Griffin Capital Essential Asset REIT, Inc., a Maryland corporation (the "Registrant"), GRT (Cardinal REIT Merger Sub), LLC, a Maryland limited liability company and a wholly owned subsidiary of the Registrant ("Merger Sub"), Griffin Capital Essential Asset Operating Partnership, L.P., a Delaware limited partnership and a subsidiary of the Registrant (the "GCEAR Operating Partnership"), GRT OP (Cardinal New GP Sub), LLC, a Delaware limited liability company and a wholly owned subsidiary of the GCEAR Operating Partnership ("New GP Sub"), GRT OP (Cardinal LP Merger Sub), LLC, a Delaware limited liability company and a wholly owned subsidiary of the GCEAR Operating Partnership ("LP Merger Sub"), GRT OP (Cardinal OP Merger Sub), LLC, a Delaware limited liability company and a subsidiary of LP Merger Sub and New GP Sub ("OP Merger Sub" and, together with the Registrant, Merger Sub, the GCEAR Operating Partnership, New GP Sub and LP Merger Sub, the "GCEAR Parties"), Cole Office & Industrial REIT (CCIT II), Inc., a Maryland corporation ("CCIT II"), Cole Corporate Income Operating Partnership II, LP, a Delaware limited partnership and a wholly owned subsidiary of CCIT II (the "CCIT II Operating Partnership"), and CRI CCIT II LLC, a Delaware limited liability company and a wholly owned subsidiary of CCIT II ("CCIT II LP" and, together with CCIT II and the CCIT II Operating Partnership, the "CCIT II Parties"), entered into an Agreement and Plan of Merger (the "Merger Agreement").
The combined company (the "Combined Company") following the "Mergers" (as such term is defined herein) will retain the name "Griffin Capital Essential Asset REIT, Inc." The Combined Company, as of October 29, 2020, would have a total asset value of approximately $5.8 billion, and would own 125 properties in 26 states, consisting of approximately 31 million square feet. On a pro forma basis, as of June 30, 2020, the Combined Company portfolio will be approximately 90% leased, on a weighted average basis, with a remaining weighted average lease term of 7.4 years, approximately 58% of the net rent will come from properties leased to tenants and/or guarantors who have, or whose non-guarantor parent companies have, investment grade or what management believes are generally equivalent ratings, and no tenant will represent more than 3.3% of the 12-month forward net rents of the Combined Company, with the top ten tenants comprising, collectively, approximately 25% of the net rents of the Combined Company.
Prior to entering
into the
Merger
Agreement, CCIT
II (a) terminated the Agreement and Plan of Merger, dated as of August 30,
2020, by and
among CCIT II, CIM
Real
Estate Finance Trust, Inc. ("CMFT"), and Thor II Merger Sub,
LLC,
a
wholly owned subsidiary of CMFT (as amended, the "CMFT Merger Agreement"), in accordance with Section 9.1(c)(ii) of the CMFT Merger Agreement,
and (b)
paid to
CMFT
the termination fee equal to $7,380,000 in accordance with the
CMFT Merger
Agreement, and will pay to CMFT the amount of CMFT's Expenses (as defined in the CMFT Merger Agreement), up to $3,690,000, required to be paid pursuant to the terms of the CMFT Merger Agreement (such amounts together, the "CMFT Termination Payment").
Subject to the terms and conditions of the
Merger Agreement, at the Closing (as defined in the Merger Agreement) (i) CCIT II will merge with and into Merger Sub (the "REIT Merger"), with Merger Sub being the surviving entity, (ii) OP Merger Sub will merge with and into CCIT II Operating Partnership (the "Partnership Merger"), with the CCIT II Operating Partnership being the surviving entity and (iii) CCIT II LP will merge with and into LP Merger Sub (the "LP Merger" and, together with the REIT Merger and the Partnership Merger, the "Mergers") with LP Merger Sub being the surviving entity.
At the effective time of the REIT Merger and subject to the terms and conditions of the Merger Agreement, each issued and outstanding share of CCIT II's Class A common stock, $0.01 par value per share ("CCIT II Class A Common Stock"), and Class T common stock, $0.01 par value per share ("CCIT II Class T Common Stock" and together with the CCIT II Class A Common Stock, "CCIT II Common Stock"), will be converted into the right to receive 1.392 shares of the Registrant's Class E common stock, $0.001 par value per share ("Class E Common Stock"), subject to the treatment of fractional shares in accordance with the Merger Agreement (the "REIT Merger Consideration"). At the effective time of the REIT Merger and subject to the terms and conditions of the Merger Agreement, each issued and outstanding share of CCIT II Class A Common Stock granted under CCIT II's 2018 Equity Incentive Plan, whether vested or unvested, will be cancelled in exchange for an amount equal to the REIT Merger Consideration.
At the effective time of the Partnership Merger and subject to the terms and conditions of the Merger Agreement, (i) each issued and outstanding partnership unit of the CCIT II Operating Partnership ("CCIT II Operating Partnership Units") held by CCIT II will be converted into the right to receive 1.392 shares of the GCEAR Operating Partnership's Class E Units, subject to the treatment of fractional units in accordance with the Merger Agreement, and CCIT II will be admitted as a limited partner of the GCEAR Operating Partnership and (ii) each issued and outstanding CCIT II Operating Partnership Unit held by CCIT II LP will automatically be cancelled and cease to exist, and no consideration shall be paid, in connection with or as a consequence of the Partnership Merger.
At the effective time of the LP Merger and subject to the terms and conditions of the Merger Agreement, all of the issued and outstanding limited liability company interests in CCIT II LP will automatically be cancelled and cease to exist, and no consideration shall be paid, in connection with or as a consequence of the LP Merger.
For U.S. federal income tax purposes, it is intended that (i) the REIT Merger shall qualify as a "reorganization" under, and within the meaning of, Section 368(a) of the Internal Revenue Code of 1986, as amended (the "Code"), and the Merger Agreement is intended to be adopted as a "plan of reorganization" for purposes of Sections 354 and 361 of the Code and (ii) the Partnership Merger and the LP Merger together shall be treated as a contribution by CCIT II of all of its assets, subject to all of its liabilities, to the GCEAR Operating Partnership in exchange for partnership interests of the GCEAR Operating Partnership pursuant to Section 721 of the Code.
The Merger Agreement contains customary representations,
warranties
and covenants, including
covenants
relating to the conduct of the Registrant's and CCIT II's respective
businesses
during
the
period between
the
execution of the Merger Agreement and the completion of the Mergers,
subject
to
certain
exceptions. The Merger Agreement also contains a representation and warranty on behalf of CCIT II that, prior to entering into the Merger Agreement, CCIT II terminated the CMFT Merger Agreement (and paid CMFT the CMFT Termination Payment) and entered into the Merger Agreement in compliance with the terms of the CMFT Merger Agreement.
Pursuant to the terms of the Merger Agreement, CCIT II and its subsidiaries and
representatives may
not solicit, provide information or enter into discussions concerning proposals relating to
alternative
business combination transactions, subject to certain limited exceptions set forth in the Merger Agreement.
The Merger Agreement also provides
that prior to
the Stockholder Approval (as defined herein), CCIT II's board
of directors may, under specified
circumstances,
make an Adverse Recommendation Change (as defined
in the Merger Agreement), including withdrawing its recommendation of the REIT Merger,
subject
to
complying with certain conditions set forth in the Merger Agreement.
The Merger Agreement may
be
terminated
under certain circumstances, including but not limited to, by either
the
Registrant or CCIT
II if the
Mergers
have
not been consummated on or before 11:59 p.m. New York time
on May
30, 2021 (the
"Outside
Date"), if a final and non-appealable order is entered permanently restraining or otherwise prohibiting the
transactions
contemplated by the Merger Agreement, if the Stockholder Approval has not been obtained at the meeting of CCIT II's stockholders to be called to consider the REIT Merger
or
upon a material uncured breach of the respective obligations, covenants or agreements by
the other party that
would cause the closing conditions in the Merger Agreement not to be satisfied.
In addition,
CCIT II
may terminate the Merger Agreement in order to enter into an "Alternative Acquisition Agreement" with respect to a "Superior Proposal" (each as defined in the Merger Agreement) at any time prior to receipt by CCIT II of the Stockholder Approval pursuant to and subject to the terms and conditions of the Merger Agreement.
The Registrant may terminate the Merger Agreement, in certain limited circumstances, prior to the receipt of the Stockholder Approval, including upon (i) an Adverse Recommendation Change, (ii) a tender offer or exchange offer that is commenced which CCIT II's board of directors fails to recommend against or (iii) a breach by CCIT II, in any material respect, of its obligations under the no solicitation provisions set forth in the Merger Agreement.
If the Merger Agreement is terminated because the Mergers were not consummated before the Outside Date or because the Stockholder Approval was not obtained, and (i) an "Acquisition Proposal" (as defined in the Merger
Agreement) has been publicly announced or otherwise communicated to CCIT II's stockholders prior to the Stockholders Meeting (as defined in the Merger Agreement), and (ii) within 12 months after the date of such termination (A) CCIT II consummates or enters into an agreement (that is thereafter consummated) in respect of an Acquisition Proposal for 50% or more of CCIT II's equity or assets or (B) the board of directors of CCIT II recommends or fails to recommend against an Acquisition Proposal structured as a tender or exchange offer for 50% or more of CCIT II's equity and such Acquisition Proposal is actually consummated, then CCIT II must pay the Registrant a termination fee of $18,450,000 and up to $3,690,000 as reimbursement for the Registrant's Expenses (as defined in the Merger Agreement).
If the Merger Agreement is terminated in connection with CCIT II's acceptance
of a
Superior Proposal or making an Adverse Recommendation Change, then CCIT II must pay to the Registrant
a termination
fee of $18,450,000 and up to $3,690,000 as reimbursement for the Registrant's Expenses.
If the Merger Agreement is terminated because any breach of any representation or warranty or failure to perform or comply with any obligation, covenant or agreement on the part of any of the CCIT II Parties set forth in the Merger Agreement has occurred that would cause any of the closing conditions not to be satisfied, then CCIT II must pay to the Registrant up to $3,690,000 as reimbursement for the Registrant's Expenses.
If the Merger Agreement is terminated because any breach of any representation or warranty or failure to perform or comply with any obligation, covenant or agreement on the part of any of the GCEAR Parties set forth in the Merger Agreement has occurred that would cause any of the closing conditions not to be satisfied, then the Registrant must pay to CCIT II (i) an amount equal to the CMFT Termination Payment and (ii) $3,690,000 as reimbursement for CCIT II's Expenses.
The obligation of each party to consummate the Mergers is
subject to a number
of customary conditions, including receipt of the approval of the REIT Merger (and of an amendment to CCIT II's charter that is required to consummate the REIT Merger) by holders of a majority of the outstanding shares of the CCIT II Common Stock entitled to vote thereon (the "Stockholder Approval"), delivery of certain documents and legal opinions, the truth and correctness of the representations
and
warranties of the
parties
(subject to the materiality standards contained in the Merger Agreement), the
effectiveness of
the registration
statement
on Form S-4 to be filed by the Registrant to register the shares of the Class
E Common Stock to
be issued
as consideration in the REIT
Merger, and the absence of a CCIT II Material Adverse
Effect
or GCEAR Material Adverse Effect (as each term is defined in the Merger Agreement).
The Registrant's obligation to consummate the
Mergers
is
not subject to a
financing condition. Until the effective time of the REIT Merger, each of the Registrant and
CCIT
II
are
permitted
to
declare and pay distributions in an amount less than or equal to an annual
rate of
five percent
of
its net asset value as of June 30, 2020, ratably over the calendar year.
The Merger Agreement provides that the Registrant's board
of directors will
take such action as necessary to cause three (3) Independent Directors (as
defined in the
charters of each of CCIT
II
and the Registrant) serving as members of the
board of directors of CCIT II
to be elected to the Registrant's
board
of
directors
effective as
of the
effective time of the REIT Merger to serve
until the
next annual meeting of stockholders of the Registrant. In connection
with such
next
annual meeting
of stockholders of the Registrant, the Nominating and Corporate Governance Committee
of the Registrant will recommend
to the Registrant's board of directors at least one (1) of such CCIT directors
for election
to
the Registrant's
board of directors at such annual meeting of stockholders.
The foregoing
description
of the
Merger
Agreement
is only a
summary, does not purport to be complete and is qualified in its entirety
by reference
to the
full
text of the
Merger
Agreement, which is filed as Exhibit 2.1 to this Current Report on Form 8-K and is incorporated herein by reference.
A copy of the Merger
Agreement has been included to provide stockholders with information regarding its terms and conditions,
and is not intended to provide
any factual information about the Registrant or CCIT II. The representations,
warranties and covenants
contained in the Merger Agreement have been made solely for the benefit of the
parties to the Merger Agreement,
and are not intended as statements of fact to be relied upon by the Registrant's
stockholders, but rather
as a
way of
allocating the risk between the parties to the Merger Agreement in the event
the
statements therein
prove
to be
inaccurate.
Statements made in the Merger Agreement have been modified
or
qualified by certain confidential disclosures that were made between the parties in connection with the negotiation
of the
Merger Agreement, which disclosures are
not reflected in the Merger Agreement attached hereto. Moreover,
such
statements may
no
longer be true as of a given date and may apply standards of materiality in a way that is different
from
what may
be
viewed as material by stockholders. Accordingly, stockholders should not rely on the representations,
warranties and
covenants or any descriptions thereof as characterizations of the actual state of facts or condition of
the Registrant
or CCIT II. Moreover, information concerning the subject matter of the representations and
warranties
may change after the date of the Merger Agreement, which subsequent information may or may not be fully reflected in the Registrant's public disclosures. The Registrant acknowledges that, notwithstanding the inclusion of the foregoing cautionary statements, it is responsible for considering whether additional specific disclosures of material information regarding material contractual provisions are required to make the statements in this Current Report on Form 8-K not misleading.
Termination Agreement
Concurrently with the entry into the Merger Agreement, the Registrant, CCIT II and Cole Corporate Income Management II, LLC (the "CCIT II Advisor") entered into a letter agreement (the "Termination Agreement"). Pursuant to the Termination Agreement, the Advisory Agreement, dated as of August 27, 2013, by and between CCIT II and the CCIT II Advisor (as amended, the "CCIT II Advisory Agreement") will be terminated upon consummation of the Mergers. Pursuant to the Termination Agreement, (i) upon consummation of the Mergers or (ii) termination of the CCIT II Advisory Agreement, if such termination occurs prior to the earlier of the consummation of the Mergers and June 30, 2021, for certain reasons other than a material breach of the CCIT II Advisory Agreement by the CCIT II Advisor, CCIT II will pay the CCIT II Advisor the "Subordinated Performance Fee" (as defined in the CCIT II Advisory Agreement) in an amount equal to $26,688,591 and the "Disposition Fee" (as defined in the CCIT II Advisory Agreement) in an amount equal to $1,750,000. The Termination Agreement also provides that the CCIT II Advisor will not terminate the CCIT II Advisory Agreement with effect prior to the earlier of the consummation of the Mergers and June 30, 2021, other than in the event of material breach of the CCIT II Advisory Agreement by CCIT II. In the event that the Merger Agreement is terminated in accordance with its terms, the Termination Agreement will be automatically terminated.
The foregoing description of the Termination Agreement is only a summary, does not purport to be complete and is qualified in its entirety by reference to the full text of the Termination Agreement, which is filed as Exhibit 10.1 to this Current Report on Form 8-K and is incorporated herein by reference.
Item 7.01.    Regulation FD Disclosure
Joint Press Release and Investor Presentation
On November 2, 2020, the Registrant and CCIT II issued a joint press release announcing the execution of the Merger Agreement as described in detail in Item 1.01 above. A copy of the press release is attached hereto as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein solely for purposes of this Item 7.01 disclosure.
In addition, on November 2, 2020, the Registrant posted to its website (
www.gcear.com
) an investor presentation prepared by the Registrant containing certain information related to the proposed Mergers. A copy of the investor presentation is filed as Exhibit 99.2 to this Current Report on Form 8-K
and
is incorporated herein solely for purposes of this Item 7.01 disclosure.
Pursuant to the rules and regulations of the Securities and Exchange Commission
(the
"SEC"), the information in this Item 7.01 disclosure, including Exhibits 99.1 and 99.2 and
information set forth
therein, is deemed to have been furnished and shall not be deemed to be "filed" under the
Securities Exchange
Act of 1934, as amended.
Item 8.01.    Other Events
November 2020 Distribution Declaration
On October 19, 2020, the Registrant's board of directors declared an all-cash distribution rate based on 366 days in the calendar year, of $0.000956284 per day ($0.35 per share annualized), subject to adjustments for class-specific expenses, per Class E share, Class T share, Class S share, Class D share, Class I share, Class A share, Class AA share and Class AAA share of common stock, for stockholders of record at the close of each business day for
the period commencing on November 1, 2020 and ending on November 30, 2020. The Registrant will pay such distributions to each stockholder of record at such time in December 2020 as determined by the Registrant's Chief Executive Officer.
ADDITIONAL INFORMATION ABOUT THE MERGERS
In connection with the proposed Mergers, the Registrant intends to file a registration statement on Form S-4 with the SEC that will include a proxy statement of CCIT II and will also constitute a prospectus of the Registrant. This communication is not a substitute for the registration statement, the proxy statement/prospectus or any other documents that will be made available to the stockholders of CCIT II. In connection with the proposed Mergers, the Registrant and CCIT II also plan to file relevant materials with the SEC. STOCKHOLDERS OF CCIT II ARE URGED TO READ ALL RELEVANT DOCUMENTS FILED WITH THE SEC, INCLUDING THE RELEVANT PROXY STATEMENT/PROSPECTUS, WHEN THEY BECOME AVAILABLE, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED MERGERS. A definitive proxy statement/prospectus will be sent to CCIT II's stockholders. Investors may obtain a copy of the proxy statement/prospectus (if and when it becomes available) and other relevant documents filed by the Registrant and CCIT II free of charge at the SEC's website, www.sec.gov. Copies of the documents filed by the Registrant with the SEC will be available free of charge on the Registrant's website at http://www.gcear.com or by contacting the Registrant's Investor Services at (888) 926-2688, as they become available. Copies of the documents filed by CCIT II with the SEC will be available free of charge on CIM's website, at https://www.cimgroup.com/investment-strategies/individual/for-shareholders, as they become available.
PARTICIPANTS IN SOLICITATION RELATING TO THE MERGERS
CCIT II, the Registrant and their respective directors and executive officers and other members of management and employees, as well as certain affiliates of CIM Group, LLC serving as CCIT II's external advisor, may be deemed to be participants in the solicitation of proxies from CCIT II stockholders in respect of the proposed Mergers among the Registrant, CCIT II and their respective subsidiaries. Information regarding the directors, executive officers and external advisor of CCIT II is contained in the Annual Report on Form 10-K for the year ended December 31, 2019 filed with the SEC on March 30, 2020, as amended on April 27, 2020. Information about directors and executive officers of the Registrant is available in the proxy statement for its 2020 annual meeting of stockholders, which was filed with the SEC on April 15, 2020.  Other information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the proxy statement/prospectus and other relevant materials filed with the SEC regarding the proposed Mergers when they become available.  Stockholders of CCIT II should read the proxy statement/prospectus carefully when it becomes available before making any voting or investment decisions.  Investors may obtain free copies of these documents from the Registrant or CCIT II using the sources indicated above.
NO OFFER OR SOLICITATION
This communication and the information contained herein does not constitute an offer to sell or the solicitation of an offer to buy or sell any securities or a solicitation of a proxy or of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended. This communication may be deemed to be solicitation material in respect of the proposed Mergers.
Disclaimer on
Forward-Looking
Statements
This Current
Report on
Form 8-K contains statements that constitute forward-looking statements within the meaning of Section
27A
of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements can generally be identified as forward-looking because they include words such as "believes," "anticipates," "expects," "would," "could," or words of similar meaning.  Statements that describe future plans and objectives are also forward-looking statements. These statements are based on the Registrant's and/or CCIT II's current expectations and beliefs and are subject to a number of trends and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements; the Registrant can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from the Registrant's expectations include, but are not limited to, the risk that the Mergers will not be consummated within
the expected time period or at all; the occurrence of any event, change or other circumstance that could give rise to the termination of the Merger Agreement; the failure to satisfy the conditions to the consummation of the proposed Mergers, including the approval of the stockholders of CCIT II; statements about the benefits of the proposed transaction involving the Registrant and CCIT II and statements that address operating performance, events or developments that the Registrant expects or anticipates will occur in the future, including but not limited to statements regarding anticipated synergies and G&A savings, future financial and operating results, plans, objectives, expectations and intentions, expected sources of financing, anticipated asset dispositions, anticipated leadership and governance, creation of value for stockholders, benefits of the proposed transaction to customers, employees, stockholders and other constituents of the combined company, the integration of the Registrant and CCIT II, cost savings and the expected timetable for completing the proposed transaction, and other non-historical statements; risks related to the disruption of management's attention from ongoing business operations due to the proposed Mergers; the availability of suitable investment or disposition opportunities; changes in interest rates; the availability and terms of financing; the impact of the COVID-19 pandemic on the operations and financial condition of each of the Registrant and CCIT II and the real estate industries in which they operate, including with respect to occupancy rates, rent deferrals and the financial condition of their respective tenants; general financial and economic conditions, which may be affected by government responses to the COVID-19 pandemic; market conditions; legislative and regulatory changes that could adversely affect the business of the Registrant or CCIT II; and other factors, including those set forth in the section entitled "Risk Factors" in the Registrant's and CCIT II's most recent Annual Reports on Form 10-K, as amended, and Quarterly Reports on Form 10-Q filed with the SEC, and other reports filed by the Registrant and CCIT II with the SEC, copies of which are available on the SEC's website, www.sec.gov. Forward-looking statements are not guarantees of performance or results and speak only as of the date such statements are made. Except as required by law, neither the Registrant nor CCIT II undertakes any obligation to update or revise any forward-looking statement in this communication, whether to reflect new information, future events, changes in assumptions or circumstances or otherwise.
Item 9.01.  Financial Statements and Exhibits
(d) Exhibits
Exhibit No.
Description
2.1
Agreement and Plan of Merger, dated as of October 29, 2020, by and among Griffin Capital Essential Asset REIT, Inc., GRT (Cardinal REIT Merger Sub), LLC, Griffin Capital Essential Asset Operating Partnership, L.P., GRT OP (Cardinal New GP Sub), LLC, GRT OP (Cardinal LP Merger Sub), LLC, GRT OP (Cardinal OP Merger Sub), LLC, Cole Office & Industrial REIT (CCIT II), Inc., Cole Corporate Income Operating Partnership II, LP and CRI CCIT II LLC*
10.1
Termination Letter Agreement, dated as of October 29, 2020, by and among Cole Office & Industrial REIT (CCIT II), Inc. and Cole Corporate Income Management II, LLC*
99.1
Joint Press Release dated November 2, 2020
99.2
Investor Presentation dated November 2, 2020
________________
*
Schedules and exhibits omitted pursuant to Item 601(b)(2) of Regulation S-K. The Registrant agrees to furnish a supplemental copy of any omitted schedule or exhibit to the SEC upon request.
Signature(s)
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Griffin Capital Essential Asset REIT, Inc.
Date:  November 2, 2020
By:
/s/ Javier F. Bitar
Javier F. Bitar
Chief Financial Officer and Treasurer